Italgas S.p.A. ($IG)

Good afternoon. This is the Chorus Call conference operator. Welcome, and thank you for joining the Italgas First Quarter 2026 Results Conference Call. [Operator Instructions] At this time, I would like to turn the conference over to Ms. Anna Maria Scaglia, Head of Investor Relations of Italgas. Please go ahead, madam.

Hello. Good afternoon to everyone, and thank you for joining us. I'm here with our CEO, Paolo Gallo; and our CFO, Gianfranco Amoroso, who will be running this presentation. As usual, a Q&A section will follow the presentation. I'll now leave the floor to our CEO, Paolo Gallo.

Good afternoon. Sorry for being slightly late, but we were waiting a few analysts and investors to be connected. And we are here to present to you the just approved 2026 first quarter results. And let me say that very excited to share the numbers. I would like just to recall you that it is the 37th quarter of continuous growth. So we started to grow. It was the first quarter of 2017. We are in 2026. We are still continuously grow. And I think that's an incredible achievement. Solid result in the first quarter. And of course, you can understand that those are coming through the consolidation of 2i Rete Gas and even more important through the level of synergies that we have already achieved in the first quarter at a speed that I would probably define a better speed than what we expected when we started this journey. Asset disposal, as of today, we complete all of them. In the first quarter, you only see a major portion, but not all because some were completed just the beginning of May. So at the end of the day, we sold 2,047 redelivery points with a consideration of EUR 263 million, less than EUR 200 million were consolidated in the first quarter results. The premium at which we sold those assets were 16%. Regarding -- as I already said, regarding integration, we delivered a number that when we started the journey was not expected so high. We are nearly close to 37% of the total target, and we have accrued this number in the first 12 months of this journey. At the same time, we have used a very -- and Gianfranco will explain you later, a very short window in the market, and we were able to raise a bond of EUR 750 million with a very good condition as well as we signed a revolving credit facility for EUR 900 million for credit rating purpose. Finally, we will show you in a moment a brilliant 2026 guidance. Let me move to the first quarter result. We skip the page, and we are looking at the results. First of all, let me say that we are comparing adjusted number. Let me say that in 2026, the adjustment has been extremely limited only to cost, not to revenues, while for the reason that you have already know in '25, we had several adjustments at revenue level as well as cost level. So the revenues were up -- nearly up by 44% versus last year. Main and main contribution by far was the gas distribution activity, mainly driven by the consolidation of 2i Rete Gas as well as the RAB growth both in Italy and Greece. Thanks to the synergy, the increase of EBITDA passed the 50%. We are nearly to close to 53% year-on-year. And in fact, our EBITDA margin nearly reached 80% in the first quarter '26, reflecting the contribution of everything, in particular, the efficiency and the synergies. Below EBITDA performance remained very strong. Adjusted EBIT is EUR 341 million, up to 51.2% if we look at the first quarter '25 and the adjusted net profit was nearly at EUR 190 million. And this increase that is lower than 50% is driven by the ARERA -- the increase of ARERA in the tax line. Regarding capital allocation, CapEx, we spent in the first quarter nearly EUR 350 million, 2x what we spent last year. Remember that in the first quarter '25, we didn't have the contribution of 2i Rete Gas. And another big element is the level of operating cash flow that is a record, and it is a combination of the operating cash flow itself we will see in details. On top of that, we had the disposal. The result has been that the net debt has dropped by more than EUR 500 million in respect to the end of the year 2025. Let's look at the synergies that is on Page 4. On the left side of the page, we show which are the new initiatives that we started in the first quarter '26 as well as the initiatives that were activated in 2025 that will continue to generate savings also during the first quarter of '26. I think reaching nearly 37% of the overall synergies, the target that we set for 2031, in 1 year, 12 months only, I think it's an incredible achievement. And of course, we are fully on track to reach the 50% target that we said we should reach by the end of the year. And I think the speed is fundamental because we are accruing saving, and therefore, we are making our income statement and the net profit better than expected. Looking at what is driving the synergies is the biggest contributor is the ICCT consolidation. You remember that last year, we moved all the 2i Rete Gas data into our cloud ecosystem using the same application map as well as we fully reorganized the operational activity at the field level. We were able also to complete the reorganization at the corporate level. And of course, we are trying to get everything possible in terms of efficiency from that operation. We are talking about emergency call center. We are talking about laboratory testing. Some of them as well as commercial request management, those activity previously in 2i Rete Gas were performed by a third party, today have been fully performed by our personnel. On procurement, we will continue -- we are continuing to renegotiate the contracts with third party in order to leverage our scale and our size in order to get economy of scale. New initiatives are coming up in 2026. One of them, we completed the replacement of the traditional meters that were left by 2i Rete Gas with smart ones, especially with our Nimbus. We complete the migration of the legacy 2i Rete Gas meters into Italgas remote management ecosystem. We are continuing to rationalize our offices. We have already closed 22 sites since July 1 as well as we continue to renegotiate procurement contracts. Finally, and probably the most promising one is all the activity that we are performing on AI. It's an incredible accelerator of efficiency. We discovered that our ecosystem made of digital platform and reliable data is the best one in which you can perform AI at massive scale with the creation of AI agent. We have already created several of them. They are intervening in the scheduling of the activities in the meter reading, in the IT ticket management, and this will continue to happen also in the coming months. Let me just jump after this synergy into the guidance, just to give you the flavor how the 2026 looks like. We have introduced for the first time the net profit guidance. If you remember, we have never given that, but I think considering the brilliant guidance, we wanted to show all the elements of the guidance. Regarding the adjusted EBITDA, we expect it to have a range between EUR 2.1 billion, EUR 2.15 billion. That is a double-digit increase compared to the closing number of 2023, it's 5 of course, in 2026, we have 3 months more of 2i Rete Gas. But even more important, we are extracting a lot of synergies. And in fact, in our guidance, we forecast that we are going to achieve at least 50% of the synergies of the overall target that we have promised for 2031. Below the EBITDA, the adjusted EBIT is expected to reach a range between EUR 1.34 billion to EUR 1.37 billion and an adjusted net profit between EUR 740 million and EUR 760 million, demonstrating again our ability to create value for all our shareholders. Regarding the investment, target is EUR 1.5 billion, more or less, mainly driven by -- the additional in respect of 2025 is driven by the upgrading and the transformation into digital equipment of the legacy of 2i Rete Gas network. It's not going to be end in '26 as already presented, but '26 is going to be an important year for the upgrade of the gas network that we inherited from 2i Rete Gas. Finally, thanks to the strong cash flow generation, we are able to keep the net debt more or less on the same level of the end of last year, considering also the dividend. So in other terms, the cash flow generated in '26 will be able to pay in full the CapEx, even though they have been increasing significantly in respect of last year as well as the dividends that we have already committed to pay to our shareholders. Let me take a more detailed look about what we performed in the first quarter of 2026. In terms of revenues, as I said, in '26, there is no adjustment at all. So we are comparing reported numbers with the adjusted one in '25. We had several adjustments in -- sorry, '25, yes, we had several adjustments in '25. In the comparison -- right comparison, the overall revenue increased by 44%, driven, as you can see by the 2i Rete Gas contribution as well as regulated gas distribution with a negative contribution that is coming from some water activity and the energy efficiency. Let me say that we have seen an increase of RAB either in Italy and Greece, and that contributed to the delta, the positive delta of the regulated gas distribution. If we move to the cost, that is probably the most interesting one, you can see the operating cost in the quarter increased by 18.3%, significantly below -- well below the growth in revenues, thanks to the synergies. In a like-for-like comparison, the drop of the cost is EUR 56.4 million. That represents nearly 30% on a like-for-like basis. This is an incredible achievement. That is the reason why the synergies have been accelerated so much. The drop in the cost in the water and the ESCO are linked to the drop in the revenues that I described before. If you look at the number of synergies that we were able to achieve, as I said before, we reached overall nearly 37% of the total. We confirm that by year-end, we should reach maybe a little bit and pass a little bit the 50% of the total. Let me look at the EBITDA, then I will pass the floor to Gianfranco to make a final comment on the EBITDA. What is important to underline is the increase of the margin of the EBITDA by 20 bps. In fact, we move from -- let me say, we increased significantly the EBITDA margin, that is thanks, and if you remember, one of the comments that we have made at the time of acquisition of 2i Rete Gas is that 2i Rete Gas had a lower EBITDA margin contribution than Italgas. That is a clear demonstration of our ability to immediately align the EBITDA margin, not only to our previous one, but even to increase it, thanks to the synergies. And I think that is probably the most effective way to represent our ability to integrate 2i Rete Gas and to be efficient immediately in all our operation. Let me pass the word and the floor to Gianfranco for the remaining part of the presentation.

Thank you. We are now on the EBIT evolution. Adjusted EBIT exceeded EUR 340 million with a growth of more than 51%. This growth is largely driven by the EBITDA increase, has been partially offset by higher D&A of EUR 66 million. This EUR 66 million increase is mainly due to the consolidation of 2i Rete Gas, of course, and the carryover effect of the investment done in the previous 12 months. On the adjusted net profit, we have a remarkable growth of 42.8%, mainly driven by 2i Rete Gas acquisition contribution and by the solid operating performance. So we have a higher EBIT contribution for EUR [ 150 ] million that has been partially offset by an increase of adjusted net financial expenses that now include the cost of 2i Rete Gas debt that has been consolidated starting from 1st of April and the interest charge related to the full impact in the quarter of the dual tranche bond issued in March '25. Then we have, going down to the line, EUR 1 million of higher contribution from equity investments and remarkable a higher adjusted tax rate of EUR 30 million due to the higher taxable income and the ARERA impact, temporary and extraordinary impact, which led to a tax rate of 29.7%.

If we move to the CapEx side, I mean, another remarkable achievement. We doubled the CapEx in respect of the first quarter '25. Even though you know that the size and the RAB of 2i Rete Gas is not -- was not as big as the one in Italgas. And you can see that the doubling of the investment is everywhere, is in the development and repurposing of the network as well, and that is even more important from the digitization. You should consider that we have fully digitized the Italgas legacy one. We saw the majority of the EUR 74 million are focused on the 2i Rete Gas legacy. That is important in order to accelerate all the efficiency that we are talking before and especially the remote and control management that we are able to do it on the network. And then we have also other investment that nearly tripled. Of course, the amount is limited, but includes ICT and real estate intervention. Remarkable, we were able to lay nearly 300 kilometers of network and nearly, let's say, 40% only in Greece. So again, we are expanding our network significantly also in Greece, 120 kilometers were the new pipelines we were able to lay down in a quarter in Greece. Before we will discuss about the cash flow, let me just give a short view about our performance in terms of energy efficiency and CO2 emission. On the energy efficiency, as you know, we continue and we are applying also that to the new equipment that we inherited from 2i Rete Gas, we continue to make action in order to reduce the energy consumption. In this period of the year is particularly important considering the price of the energy as well as the price of the gas. So net energy consumption on a like-for-like basis decreased by nearly 20%, 18.3% year after year. The reason of such reduction is improved -- the improvement we were able to bring to the facility of the group. We replaced -- we continue to replace natural gas treating boilers. We install on all our treating boilers optimization system. We fully digitize them, so we are able to control on a real-time basis the real consumption. Scope 2 and -- Scope 1 and Scope 2 emissions were also reduced, mainly driven by the energy consumption from fossil fuel. We have seen an increase in the fugitive emission by 3.3%, but because we significantly increased the number of kilometers of network that we were inspecting during the quarter. If we look at the gas leakage rate, that remains very low, not only remains very low, but is declining in respect of last year. That means that we expect that by year-end, the overall gas leakage rate will even decrease in respect of the previous year.

Moving to the cash flow. First, we reported a clear record high cash flow from operation of EUR 643 million, driven by solid operating financial performance and a favorable and positive net working -- net working capital evolution. The increase in net working capital of EUR 277 million is mainly due to a positive billing seasonality, also including, of course, the perimeter of 2i Rete Gas for the first time, higher tax payable and other positive impacts. The operating cash flow allowed us to cover the net cash investment in the period of EUR 305 million, at the same time, generating more than EUR 330 million of free cash flow before M&A impact. Going down, we also reported in the quarter almost EUR 200 million of positive contribution from the mandatory disposals, of which EUR 90 million represents an advanced payment relating to a disposal of activity transferred on the 1st of April. Overall, as of today, all the disposal linked to the mandatory antitrust ruling have been completed and the assets transferred. All the impacts that we have explained are the basis for the drop in net debt by more than EUR 500 million in the quarter. Going to the debt structure and funding. Due to the positive cash flow evolution, we have closed the first quarter with a net debt of EUR 10.35 billion, including IFRS 16 or, let's say, EUR 10.2 billion excluding IFRS 16. Our financial structure remains, as you can see, very solid, being composed for 80% of fixed rate instruments and with an average cost of our gross debt around 2.1%. Let me now comment 2 important transactions that we have completed in April. Well, in just 2 days, between 8 and 9 of April, we were able to take advantage of liquidity and rates positive window in the market, issuing EUR 750 million bond with a maturity of 6 years to support our prefunding needs. We also subscribed a new EUR 900 million sustainability-linked revolving facility with a tenure of 5 years, replacing an existing one signed in 2024 at support of our rating. These 2 transactions are in line with our strategy to optimize our debt structure and support our rating. Let me add that with these transactions, we have now addressed the majority of our financing needs for the year.

Thank you. So we are now open for the Q&A section, Operator.

[Operator Instructions] The first question is from Julius Nickerson, Bank of America.

I have two, and the first one is on synergies. So obviously, a massive step-up this quarter, and you said that the guidance just a little bit above 50% of the total amount. But should we still see this as just front-loading the total amount? Or did you also identify new sources where you can extract synergies from now that since we last spoke? And then the second one is on the guidance. Does the guidance include any additional benefit from tenders or the tenders that are folding this year more earnings impact for 2027?

On the synergies, you are right. It's -- the speed, as I said, is the speed at which we are achieving them, that is good because that is going to be -- we are going to accumulate the number throughout the year. What we are doing for which we are not able to answer yet is that in the process of elaborating the new strategic plan, we are reviewing also all the initiatives. I would say probably most -- especially in the AI domain, and please be present at the end of June, you may find some surprise. So we will -- we don't know yet, but considering the acceleration that we are able to implement on the AI, we may see some adjustment, but we don't know yet. It's not going to be impacted in 2026. So it will be probably in the years to come. But let me tell you that the speed at which we are able to implement AI agent is something that surprised us in a significant way. I mean the technology is so advanced that we are able to implement the agentic AI in in a couple of weeks' time. That is absolutely surprising. On the guidance, guidance in terms of -- does not include, let me say, the effect of the new tenders that will be awarded in this year because even if they will be awarded, we see that to be awarded in the -- except the ones that have been already awarded, the new ones will be awarded to -- we expect to us by year-end. So we don't see significant impact on the guidance. Guidance, I should remind you, it's EBITDA, EBIT, net profit and then technical CapEx and cash flow.

Next question is from James Brand, Deutsche Bank.

Interesting comments from you on AI just now, but I was going to ask you about a couple of other topics. So first was whether you could give an update on the tenders because I think these have been kind of coming in ahead of your expectations. So kind of what have you seen so far? And what are your expectations for the remainder of the year? And then secondly, on ROS, has there been any update in terms of when we will hear something from the regulator on ROS regulation?

Thank you on the tenders. Let me say the current situation is since the beginning of the year, 4 have been awarded to us. I can mention to you Torino 5, [indiscernible], 2 others that are [indiscernible] are doing -- let me say, they have already closed the evaluation and they are in the process to be awarded, hopefully, to us. I mean, we have very, very high confidence that we are -- awarded to us, considering the numbers that we put on the table. And then there are another 1, 2, 3, 4, 5, 6, 6 and 7, let's say, 6, another 6 that we expect that the offer -- well, you expect the offer will be submitted before and immediately after summertime. Some of them we expect it to be awarded by year-end. So let me just recap for you. 6, 4 have been awarded, 2 are close to be awarded. Another 6, we expect the offer will be submitted before summer, and immediately after summer, let's say, out of the 6, another 4 may be awarded by year-end. It is a fair picture. On the ROS, I have -- on the ROS, it's a very easy question. There is no news. We said several times in the meetings during the conference call that we expect considering that the ROS should start January 1, '28, first consultation document, we expect to be issued by in the second half last third -- let's say, last quarter of this year, so '26. We don't expect any consultation document earlier than that because it's still a minimum 15, 18 months ahead of the starting time. So we don't have any news on that, except saying that we expect the issuance of the first consultation document in the last quarter of '26.

The next question is from Javier Suarez, Mediobanca.

Several questions from me as well. The first one is on the efficiency and synergy on Slide #4. It's remarkable the level of synergy that has been achieved during the first quarter 2026 and the target of the company of achieving 50% of the target by 2031 and just by the end of 2026. So without unveiling what you are going to say in the next business plan update is fair to say that you are seeing a significant acceleration in that synergies extraction that is just coming from the ability of the company to implement efficiencies and basic standards of parent company into recently acquired assets and that we should see a new leg of synergies extraction from AI. I see in the bar that you are showing in Slide #4 that there is some contribution from AI, but that dark blue part should be significantly increased and probably accelerated because you see -- and I think that you mentioned that as AI as an incredible accelerator of efficiencies. Is that a fair statement, more contribution from AI and probably earlier collection of those synergies. That would be the first question. And then the second question, I was interesting to see where the company is putting the operations in Greece close to the Italian standard. Where do you are in terms of relative performance of Greece versus the Italian operations and where you are in the integration of putting these activities up to the Italian standard. Also, I'm interested in the profitability of your ESCO activities and your expectations for EBITDA margin in 2026. And the final question is a question of detail. If you can elaborate on one-offs that are included in your first quarter numbers or 2026 guidance related to capital gains from the antitrust disposal.

Sorry, Xavier, can you repeat the last question because I missed that.

Yes. The last question is that if you are including any capital gain from the disposal, the disposal in your numbers.

Got it. Got it. Okay. Let me start -- well, let me start with the efficiency and synergy. You made a long description. I will make the long story short. You are asking me quantity and time, if I may correct, and focusing particularly on AI. First of all, let me say, we are best in the market. So we are able to deliver this number because we are the best. And let me say this as a statement that I wanted to explain you why. I think that the result that we are achieving right now is thanks to the detailed work that we performed last year when we started even earlier than the closing time, and we continue to perform throughout the summer to identify line by line, activities by activities, all the possible area of synergies were identified what we were able to identify, what we have to do, when and what was the expectation in terms of synergies. So now we are, let me say, collecting and we are taking advantage of this detailed work because now we know exactly how to do it. We have a monitoring system that is going on a single month, every month, we are checking the progress, and that is the result. As I told you, the speed is -- we are running at a higher speed. We -- in the meantime, in parallel, we are reviewing our ambition in terms of synergies. If we are able to identify new topics, new idea, and I think AI may present some good news considering the application that I mentioned to you before, the result that we were able to put in place. But for this, we need -- we don't know -- honestly, we don't know the numbers yet. We will discover and we will tell you during our strategic presentation. Greece, Greece is moving towards our margin. We are above 70% in terms of EBITDA margin. So we are moving in the direction. It will never be able to catch up with the size of Italy, but still being slightly above 70% and there's still margin to improve, I think it's already a very nice and good achievement. On the ESCO, you know that all the situation of the energy efficiency is quite a tough market because the level of, let me say, support -- financial support is limited. So we do what is really -- we are more focusing on the industry today than not on the, let me call it, retail considering the large condominium. We are focusing on the industry because there is no -- as you know, there is no incentive in order to make more efficient the household. But still, we are focusing on with a target to remain in the range of 18%, 20% margin because we -- even if we prefer to reduce our turnover, but still maintaining the margin and building a nice pipeline of industry customer that can, even through, let me say, investment made by us in order to keep this marginality at the same level as we experienced in the past. So in terms of, let me say, marginality, that is our target. We'll continue to look at that. We prefer to lose business and not losing margin. That has been the, let me say, the direction since the beginning of the ESCo, we will continue in that direction. On the capital gain, we have accounted in the first 3 months, EUR 8 million of capital gain of the disposal. That is the amount because part of the capital gain has been used to reduce the goodwill -- the overall goodwill of the transaction -- of the goodwill that came out from the transaction, the acquisition of 2i Rete Gas. So part of the -- so the capital gain part has been allocated to reduce the goodwill and part has been calculated on capital gain included in the -- in our profit and loss account, the amount is EUR 8 million, the one included.

The next question is from Bartek Kubicki, Bernstein.

Congratulations on the synergies. Just regarding this, my question would be, what do you think is the end game for the regulator and how they will treat your outperformance regarding the allowed OpEx? I mean when do you think this could be -- the allowed OpEx could be reset? Is it 2028? Is it later? Is it earlier? Do you think there could be -- what will be the basis for calculating the allowed OpEx? Is it going to be 2026 year? Or is it going to be something different? So net-net, how do you think your allowed OpEx will evolve in the future given the fact that you have those significant synergies which you are recording right now? That's question number one. And question number two, if we look at those 4 items, you said they were awarded at the beginning of the year. I just wonder if, a, there is any pending court case regarding those? As we remember in the past, there used to be court cases for awarded items. And secondly, if we think about those items and potential incremental CapEx on the fact that you have been awarded those items, what do you think -- what numbers are we talking about? What could be the potential CapEx increase on those 4 items versus the current status where the items were not awarded?

I think it's not the first time that you are asking me because I recognize you the voice. It's not the first time that you are asking me about when we are going to give back the synergies. I want to, first of all, to make a general statement because that is important. Otherwise, we will continue to discuss the subject. One of the rule of the game in our industry is, sooner or later, our efficiency should be given back to the system, and I'm very glad that it's going to be like that. But I have demonstrated to you in the last 10 years, so I mean, the track record is significant that even though we have been given back the efficiency, we were able to continue to grow. And I would like to remind you that we are on the 37th quarter continuously grow, and that is mainly thanks to the cost efficiency that we are able to achieve. Having said so, I don't have the answer. The reason is that we will keep the efficiency in '26. We will keep the efficiency in '27 because the regulation is such, we know that is the regulation. And so I'm happy that the speed at which we are achieving is increasing. We don't know what is going to happen in '28. ROS will be a different regulatory framework. So the regulator will consider the '26, '27, '25 as a cost reference. Honestly, I don't know because we don't know the details about the ROS. But I have to tell you, the rules of the -- one of the rule of this industry is that the synergies sooner or later should be given back. And I'm happy that it is right that because our focus is to continue to find a way to reduce the cost and to be more efficient. The fact that we have to give back that, that's normal. That is the game. So we know. So it's nothing surprising. Let me say that the -- you asked me about the 4 items. The 4 items will bring an incremental RAB of above -- slightly above EUR 100 million. And we expect -- well, we don't expect in '26 to have significant additional CapEx. We expect to have additional CapEx in '27, I will probably say estimated in the range of EUR 50 million to EUR 70 million about these 4 items. But we will give you a better preview of the strategic plan when we will consider, not only the 4 awarded, in the meantime, we expect also the other 2 to be awarded, and we will check the progress on the other 6. So at the strategic plan, one of the, let's say, probably the first time in the 10 years plan that we have given to you in the 10 -- not 10 years, 10 plans that we have given to you is that the first time -- for the first time, we will see an acceleration of the tender and not a delay. So I think it is worthwhile to postpone the discussion of the strategic plan in which you will have a full picture about what the tender will look like in terms of acquisition and what the tender will look like in terms of additional expenditure throughout the plan?

The next question is from Francesco Sala, Banca Akros.

Just two questions. The first one is, I wonder whether you can share with us your view on the risk-free parameter for the WACC calculation, especially about the inclusion of France and whether you have discussions with the regulator about this topic? And the second one, if you can give us a sense of the pace of the rollout of the new miners in the upcoming quarters?

Okay. Regarding the first question is, I think that it is raised already last year because there was a discussion about France to be included in the comparison in order to calculate the WACC. I should remind you that the decision of the WACC at the end of '25 happened in the period in which France was downgraded, but the downgraded happened outside of the reference period. It starts, as you know, October until September. So it was downgraded in -- after September '25. So correctly, the regulator included because the reference period was October '24, September '25. In that period, France was a AA country. Now France is not anymore a AA country. So for me, the discussion about to be included or not is not a discussion. Will -- should not be included because it's not anymore a AA country. And we are in a period of the observation period from October '25 until September '26 in which France is not a AA country. In terms of the new smart meters, our Nimbus, we are talking about a significant number that has been already installed. We are close to 200,000 Nimbus installed, close, not yet there, but the number looks better, 200,000. But more than that, more than the numbers is the performance is absolutely outstanding in respect of the -- any of the other. I mean we were able to design, to develop together with some of the suppliers, the best ever smart meter in terms of communication, in terms of the ability to close the smart meter remotely, in terms of accuracy of the reading, in terms of cybersecurity, I mean, best ever. So we are extremely pleased and this number will significantly increase throughout 2026. We have already placed order for more than 0.5 million, and we are going to place more order to other supplier. And the Nimbus will soon see -- will soon be seen also in Greece. So it's another -- let me say, it's another generation of smart meters in respect of the existing one.

[Operator Instructions] Ms. Scaglia, there are no more questions registered at this time. I turn the conference back to you for any closing remarks.

I think I would like to thank you, everybody, for attending this meeting, and I would like to thank you also for the for the fact that you have raised so many questions, even if you had a limited time to review the numbers. We were late in providing the numbers. I'm sorry for that. Next time, we will do it. Thank you to all. Have a good afternoon.

Ladies and gentlemen, thank you for joining. The conference is now over, and you may disconnect your telephone.