Maire S.p.A. (MAIRE) Earnings Call Transcript & Summary

Good afternoon, everyone, and thank you for joining us today in our Milan headquarters. Today, we will review the 9-month 2024 financial results and provide a strategic update on how NextChem is enhancing its value proposition in the energy transition. For those who are new, my name is Silvia Guidi, Head of Investor Relations. I'm joined today by our CEO, Alessandro Bernini; our CFO, Fabio Fritelli; as well as the NextChem management team. After the presentation, we will be happy to take your questions. Now I would like to hand over to Sandro for his introductory remarks and an overview of the financial results. Sandro, please.

Thank you, Silvia, and welcome, everyone, to our presentation. I'm really proud and honored to have so many of you here with me in our quarter. And also thank you for all of those, which are joining us online. So the 9-month results further strengthened the momentum we built in 2023. Our key performance indicators have shown strong growth both compared to the same period of last year with revenue with revenues and EBITDA increasing by over 30% and net income rising more than 60%. At the same time, we have consistently improved profitability, generating even more value for our shareholders. This outstanding performance was also accompanied by an improvement in net cash, which is now at its highest level ever. We continue to execute business plan, expanding our technology portfolio through the acquisition of HyDEP and GasConTec. Our growth is driven by the execution of our backlog, which stands at about EUR 15 billion and by the continuous strengthening of our workforce. We bolstered our engineering capacity through both hiring and the recent acquisition of APS group. Our headcount is now approximating 9,300 people, fully equipped to serve the current energy investment cycle. Now, let's take a closer look to our operational performance. Order intake in the sustainable technology solution was about EUR 300 million, leading to a backlog close to EUR 400 million, tangible proof of the appetite for NextChem's technology offering globally. The scope of work includes advanced technology licensing, cutting-edge process design and proprietary equipment. Several feasibility studies are also underway aimed at delivering innovative decarbonization solution to our clients and producing next generation fuels and the circular materials. Our clients' significant investment programs continues to fuel order intake in integrated engineering game construction solution with EUR 3.4 billion of new orders generated in the 9 months period. The bulk of new award were secured in a variety of countries, demonstrating our commitment to geographical diversification in our operations. We are also supporting our clients in their gas monetization strategies and low-carbon projects. In particular, we are expecting in few months award for a total value exceeding EUR 6 billion related to several projects we tendered over the last few months. These potential projects are spread over several geographies and will allow our backlog to keep the pace of our growing revenues. Of course, the exact timing of these awards is completely, of course, in the hand of our clients. So moving to the project execution, let me provide a brief update on the progress of Hail and Ghasha projects. First of all, I am proud to highlight that we achieved 1 million man hours saved in September. We completed a 30% detailed level of review 3D modeling, while over 95% of equipment purchasing activities have been carried out. Construction activities have been started ahead of schedule and are progressing with the completion of the bundle in closing storage tanks and the start of the foundation building for the process area. Overall, the project is advancing well in line with the schedule and entering into the last quarter of 2024, it will significantly increase its contribution in terms of revenues. Finally, looking at the future, we continue to see a healthy and significant commercial pipeline fueled by important investment in our clients, energy and chemical infrastructures, including the EUR 6 billion project for which a final investment decision is expected in a few months' time. This concludes the review of our operating performance. And now, I will hand over to Fabio to discuss the financial results. Please, Fabio.

Thank you. Thank you, Sandro. Our financial results keep showing a sustained growth across all the main KPIs. So revenues were EUR 4.1 billion, up 33.8%, driven by steady project execution of our backlog. EBITDA was EUR 268.8 million, up 37.2% mainly thanks to higher revenues and an improved operating leverage. Margin was 6.5%, up 20 basis points year-on-year, also thanks to the contribution from high value-added services and technologies. Our net financial charges decreased by EUR 21.9 million, thanks to the positive contribution of derivatives and an increased yield on cash deposits. The combined effect of the operating and financial management has led to a consolidated net income of EUR 144.5 million, 63% up, and with a margin of 3.5%, which is 60 basis points higher than the previous period of last year. Let's now analyze the financial results by business unit. Sustainable Technology Solutions revenues were EUR 251.7 million, which is a 31.1% increase driven by a growing demand for technological solutions, particularly in nitrogen fertilizers, carbon capture and circular fuels. EBITDA was EUR 61.2 million, up 36%, reflecting the increase in revenues. The EBITDA margin increased to 24.3%, an improvement of 90 basis points, thanks to more profitable product mix. Integrated E&C Solutions revenues were EUR 3.9 billion, up 34%, driven by the steady project execution, including the engineering and procurement activities of Hail and Gasha and the other projects in construction phase. EBITDA was EUR 207.6 million, 37.5% up with a margin of 5.3%, which is an increase of 10 basis points over the same period of the previous year. Let's now move to our investments. We continue investing to strengthen our technology portfolio and expand our engineering capabilities. By the end of September, we reached EUR 75 million in investments, mainly concentrated in sustainable technology solutions. We acquired HyDEP and GasConTec, enhancing our offering in electrochemistry and low carbon solutions. We also consolidated our position in plastic upcycling by increasing our stake in MyReplast. In the E&C business, we bolstered our engineering capacity by adding over 300 professionals through APS Group acquisition. On M&A, let me remind you that a significant portion of the purchase price is expected to be deferred and/or based on earnouts. So as to distribute payment over time, linked to performance. At the same time, we continued investing in incremental R&D and digital innovation. Now, let's move on the cash flow dynamics. Our adjusted net cash position at the end of September was EUR 362.7 million, up by EUR 24.8 million compared to December 2023. Our net working capital continues to remain strong at negative EUR 379 million, reflecting the positive financial dynamics around our projects. The significant operating cash flows allowed to disburse EUR 110.8 million in dividends and share buybacks and almost EUR 34 million in investments. I now hand over to Sandro for the guidance.

Thank you. Thank you, Fabio. Now, just to wrap up. Our 9 months results provide an extremely solid foundation for the delivery of double-digit growth in 2024, which leads us to reconfirm our guidance. So group revenues are expected to step up, as we already stated before in the last quarter, driven by the planned progress of the projects acquired in 2023 as well as in the first half of this year. In this respect, Hail and Ghasha will provide a significant contribution in the quarter growth. We are steering towards the full year revenues in the middle of the range, while EBITDA margin and adjusted net cash are expected to be in line with the 9 months results. So driven by the current fundamentals, we expect of a word of a few sizable projects to take place by the end of the year. Mindful that the exact timing is obviously driven by our client planning schedules. So this concludes the review of the 9-month results and now together, let's move into the main focus of this meeting -- of this meeting with you, which is the technological journey. So as you have seen part of the growth we are experiencing this year is driven by our sustainable technology solutions business. To this effect, we would like to provide a more detailed analysis of how NextChem is enhancing its value proposition to boost our competitive edge. NextChem journey is deeply rooted in over a century of innovation in chemistry, leveraging on the pioneering series of our extensive legacy. In 2018, the rich heritage of innovation was pulled in NextChem as the focal point for the green acceleration. Since then, have been integrated both internal and external competencies in key market segments to expand its expertise. The creation of the Sustainable Technology Solutions business unit in 2023 headed by NextChem has accelerated our efforts in the energy transition. In fact, we have successfully acquired 4 technology players in less than 2 years and pulled additional key existing competencies from 3 companies within our group, and of course, more will come. It is clear that our pioneering force are paying off. Both revenues and EBITDA have shown a strong growth, and we enjoy a best-in-class profitability. This year, we expect to see a significant leap with revenues and EBITDA set to double in the 2 years' time. We are delivering on our promises, consistently meeting our targets quarter after quarter. Now, let's turn our attention to the future and the key macro drivers behind this growth story. And as we talk about the future, let me call on stage Fabio Fritelli, the newly appointed Managing Director of NextChem.

As we look ahead, the future holds immense potential, driven by several key macro factors. Population and GDP growth continue to fuel demand for energy and resources, while regulatory and social pressures are intensifying. Governments and industries alike are focusing on energy and food security, decarbonization, efficiency, with management, pushing for more sustainable practices. The expected energy investments in our reference markets up to 2030 are impressive. Even in the most conservative economic transition scenario, we are looking at annualized investments of $1.1 trillion. The significant investment will heavily rely on clean technologies that are both economically viable and commercially scalable, almost equally divided between traditional fossil fuels and low-carbon solutions. Technologies will be crucial in enabling this transition, serving as the backbone to make the transition happen. Now, let's discuss our formula for success in this scenario. Our value proposition is clear and leads to us. We provide end-to-end economically viable solutions to drive the energy transition from feedstock to the final product. At the heart of this capability is our superior process engineering built on the case of experience and strong track records. Our expertise allows us to develop and implement efficient, scalable solution tailored to the unique challenges of each single project. We rely on a portfolio of proven proprietary technologies, constantly enhanced through cutting-edge innovation and our ability to scale up these technologies enables us to meet the industry's evolving demands while ensuring a competitive performance. What sets us apart is our technology-agnostic approach. We have the flexibility to integrate both proprietary and third-party technologies, ensuring that we always deliver the optimal solution for each project. This versatility allows us to adapt to the specific needs of our clients, providing the best path forward in the global shift toward sustainable energy. With that in mind, let's see how we further improve NextChem organization to better face the new challenges.

So our new organizational structure features 3 distinct business lines designed to address the key forces driving the energy and industrial transformation. The streamlined approach will allow us to focus on our core strengths while effectively meeting the needs of our clients and the needs of the market. So now I will leave you in Fabio's hands, who will explain the purpose of each business line.

Thank you. Thank you, Sandro. First, we have sustainable fertilizers, which embodies our commitment to feed the world. This business line is dedicated to providing innovative, eco-friendly solutions that enhance agricultural productivity while minimizing environmental impact. Next, we focus on low carbon energy vectors, which reflects our mission to move the world and promote sustainable mobility. We are developing low carbon energy solutions that support the transition to cleaner transportation and energy systems. Last, but not least, circular solutions to emphasize our goal to make materials and promote recycling. This business line is committed to creating closed-loop systems and maximize resource efficiency and reduce waste. Together, these 3 business lines position us to lead the change in the energy and industrial transformation, leveraging our expertise to deliver impactful solutions that align with global sustainability goals. Our new business lines are designed to work synergistically, maximizing flexibility, expanding our coverage and unlocking cross-selling opportunities, I'm going to repeat, unlocking cross-selling opportunities. By leveraging this integrated approach, we can offer tailored technological solutions that drive value and ensure long-term partnerships with our clients. Our solutions are widely diversified. As you can see, several final products can be obtained through technologies, belonging to different business lines which are using, by the way, different feedstocks. This is further proof of the versatility of our offering in a scenario where no single path to net zero exists and there is no one single winning technology. We keep on repeating that. Such a business model allows us to better serve the needs of our clients, starting from traditional ones like the fertilizer producers or the chemical and oil and gas industry who are the frontrunners in the implementation of decarbonization solutions. At the same time, integrating our technological offering with our E&C execution capabilities and MET Development, our project management team, we will be able to reach new clients and new sectors, such as steel, cement manufacturers as well as municipalities and multi-utilities, those that manage the waste. Now let's introduce the managers leading each of each business line, starting from sustainable fertilizers with Pejman Djavdan and Barbara Cucchiella. Please come on stage.

Thank you very much, Fabio. Good afternoon, everyone. It's a great pleasure for me to be here and to be able to address you and tell you more about the business lines that I'm responsible for, the sustainable fertilizers and nitrogen-based fuels. I have personally 35 years of experience in chemical technology and in industries and have been the CEO of Stamicarbon for the last 19 years. We have grown significantly in the last 15 years as a part of Maire. And of course, we have achieved this significant growth by adding and developing new technologies and developing new services to add to our offering. Our end market is primarily driven by the growth of population. And to be able to feed this growing population, intensification of agriculture is a must. However, we need to do that in a way that does not harm the environment or the planet. And for this, we are continuing to add into our technologies and license these technologies for the production, sustainable production, of fertilizers and for the sustainable use of fertilizers. At the same time, we are also seeing an increasing use of urea and ammonia in the industrial applications beyond agriculture. And we see also these products finding new roles in various sectors which, of course, opens up new markets for us as a business. Finally, we also see ammonia emerging as a zero carbon energy carrier which is also creating exciting and profitable opportunities for us. To meet all of these demands, of course, we have different technologies. Let me start with our urea melt and granulation technology in which we are a world market leader. And we continue, of course, to develop and enhance our solutions by maximizing the energy efficiency while minimizing the environmental impact. One example that I would like to give to you is the ultralow energy concept that we have developed. And this concept is able to reduce the steam consumption of urea plants with 40%, which is a significant reduction of energy. And we have already applied this technology in 11 new plants, factories around the world. The second one I would like to highlight is the nitric acid and ammonium nitrate technology which optimizes both CapEx and OpEx for the production of nitrate fertilizers, which is again paving the way for the use of fertilizers that have zero carbon emissions. We are also at the front of developing low carbon and green technologies for the production of ammonia. And for that, I would like to ask Barbara Cucchiella to explain more. Barbara, go ahead.

Thanks, Pejman. Just a few words about myself. I've been working for the group for more than 15 years and currently, the head of process engineering at Stamicarbon. Amongst all the developments that Pejman just mentioned, especially in the last years, we have been working on development of ammonia technology solution. In that sense, we can start discussing about ammonia that is synthesized from low carbon hydrogen. In that case, we are able to integrate our own solution with advanced proprietary hydrogen technology like autothermal reforming of catalytic partial oxidation that overall lead to a lower CO2 emission of ammonia production. This is made possible by synergies with colleagues of our business line, in particular of low carbon energy vector business line, which you will hear in a bit. At the same time, we have also developed the proprietary NX STAMI Green Ammonia production process. This is peculiar, crucial to reach long-term sustainability. And we are really proud finally to apply this for the first time in a plant in the United States. Likely, this will pave us the way for more to come in the future.

Thanks, Barbara. Thanks, Pejman. It is now the turn of low carbon energy vectors, which were mentioned, with Andrea Vena and Cristina Guazzotti. Please come on stage.

Gracias, Fabio. Good afternoon to everyone. As Fabio was mentioning, I'm heading our efforts in low carbon energy vectors. Just a few words about me. I'm a chemical engineer, and I have more than 30 years' experience in energy and industrial sectors. Out of this 30, 20 are in the hydrogen business, either in production and in designing and managing complex projects. If we look at our business line, the growth is supported by several drivers: first, the need to decarbonize the so-called hard-to-abate industries and transportation, which is critical to achieve global climate goals; secondly, the push to minimize the environmental impact of existing infrastructures, such as refineries, gas treatment plants and heavy industries through more efficient abatement solutions. Now hydrogen is by far considered the vector for energy transition being used in production of chemicals, iron, steel, and alongside this increasing use in power generation. Our business line is fully equipped with all the necessary competencies to provide the full spectrum of solutions. Starting from the classic SMR, steam methane reforming, which, when fed with biogenic feedstock, is for sure the simple and most effective proposition for biofuel production. Just an example, we are doing this in the ENI biorefinery in Marghera and Livorno. With the catalytic partial oxidation and the ATR, autothermal reformer, we can meet medium- to high-production needs of low carbon footprint hydrogen, and we make this available as Barbara was saying, for other business lines. Finally, we offer also reliable and cost-effective electrolysis modules for green hydrogen. Now if we move to next-generation fuels, we can have a look at our capabilities to provide a technological solution for low carbon methanol and synthetic methanol while, at the same time, we are unlocking sustainable aviation solution through cost-effective small-scale plants, which leverage on the regional availability of feedstock. Finally, but not least, our pretreatment processes, which is a fundamental step for production of sustainable aviation fuel. Now just to make a focus on low carbon hydrogen and methanol, let me hand over to Cristina Guazzotti, who will provide you with an overview of our AdWin technology. Please, Cristina.

Thanks. Thanks, Andrea, and hello, everyone. So let me tell you a little bit about my journey in our group. I'm currently in charge of process and incremental innovation within this business line, having spent almost 30 years working in KT, mainly working on hydrogen technologies. Today, I'm really happy to share with you our NX AdWin technology suite, which has been in our portfolio since the acquisition of GasConTec early this year. This solution is centered mainly around the so-called autothermal reforming, ATR, a technology to produce low carbon hydrogen from hydrocarbons, ensuring high production yields while enabling a capture rate of CO2 over 95%. So the NX AdWin suite, thanks to the higher operating pressure of the autothermal reforming and the elevated integration with utilities and the downstream, provide with a very high energy efficiency scheme. That makes it also extremely cost effective for large plant scale. Moreover, we cover complementary back-end technology to go to other products, among which methanol, one of the most promising next-generation fuels where we see a large potential. Is it, Andrea? What do you think?

Thank you, Cristina. Thanks for joining us. Now just a few other points of our business line. To serve the carbonization needs of the hard-to-abate sector, we offer a variety of technologies. The most important one is the CO2 carbon technology that we are applying in our Hail and Ghasha project. But this is not only a matter of CO2. We offer also sulfur recovery technology in which we are active since the '70s and which is really important to abate the pollutants in the existing refineries and gas treatment plant. Now if you look at the polymers, the advanced polymers segment inside our business line is driven, of course, by an ever-growing demand for plastic, which is particularly true in emerging markets. At the same time, there is a regulatory pressure to have a biodegradable plastic material. And for this reason, it is imperative for us to unlock those technologies to mitigate the waste impact. To address these challenges, we offer technologies to enable the production of this bioplastics, starting from fossil fuels, and we are continuously innovating in order to minimize the carbon footprint of those technologies. I think that with this, we are [ through on our part ].

Thank you, Andrea. Thank you, Cristina.

Thank you, Fabio.

Finally, it's the turn of circular solutions with Massimo Di Amato and Alessia Borgogna. Please come onstage.

Thank you. So thank you very much, Fabio, and hello, everyone. So it's been an honor for me and a privilege to be here, and we are seeing the circular solutions business line. I've been involved in NextChem since its early stages, contributing to its growth, shaping its strategic development, enhancing our low carbon and sustainable technology portfolio. So as part of the journey, I've been involved in key M&A deals, including the acquisition of MyRemono, which I'm very proud to serve as Managing Director, and GasConTec. Going back to circular solutions, there is a widespread regulatory push to reduce waste. Governments are tightening the rules in waste management, which is creating huge incentives for industries to rethink their approach. On top of that, many of these new regulations specifically promote circularity. They are designed to encourage the recycling, reuse and recovery, which perfectly fits with our core mission. So the huge availability of feedstock gives us a tremendous opportunity to capture waste streams and convert them into valuable low carbon products and material. Another critical driver is the corporate world's growing commitment to using more recycled materials. We are seeing major companies setting ambitious goals to incorporate higher percentages of recycled content in their products. This is clearly creating a powerful demand for more efficient and scalable low carbon recycling technologies. Now let me talk about the technologies we are advancing in circular solutions, starting with the NX Replast, our solution for the upcycling of plastic waste, the rigid plastic waste. So our technology tested in our own plant in Bedizzole allows us to upcycle it in more valuable products, giving this material a real second life. Our chemical recycling technology is breaking down sorted plastic waste into its original monomers. This means we can essentially return waste plastic to its raw material and reintroduce it in the production process, creating high-quality materials. We are scaling up this solution for PMMA with a view to extend it to more widely used polymers in the future. Another technology we are championing is bioenergy production from waste biomass. By converting biomass into renewable energy, we are able to offer a cleaner alternative to traditional energy sources, helping industries move towards a more sustainable energy mix. Last, but not least, we are extremely proud of our Waste-to-X solutions, which enables the valorization of waste into low carbon fuels and chemicals through gasification. On this, let me hand over to Alessia. Alessia, please?

Thank you very much, Massimo, and hello, everyone. Just a few words to introduce myself. I am part of the business development team of Waste-to-X solutions. And I have been following the development of this successful technology for the past 8 years, starting by dedicating my PhD in Chemical Engineering to this topic. With NX Circular solution, we can take waste material and convert them into syngas, which can then be transformed into valuable fuels and chemicals, like hydrogen, methanol, ethanol, and even sustainable aviation fuel by applying third-party technologies. Indeed, Waste-to-X is a clear demonstration of our ability to integrate different technologies in a proprietary process and to design an end-to-end solution. We got several awards in the past couple of years, including the most recent SAF project for DGFuels in the U.S. But we are not resting on our laurels. We are currently focusing on further development of the technology. These include digital innovations such as advanced modeling, able to combine feedstock characterization with a tailored control system of the process. Additionally, we are working to strengthen the application of our gasification technology to other feedstocks, even more challenging than conventional municipal and industrial solid waste or biomass. Actually, these are just a few examples of our contribution to the energy transition. So I hope you are as excited as I am about how our technologies can now make our world more sustainable. Thank you.

Thanks, Alessia. Thanks, Massimo. Having heard our technology portfolio, let's now see how our solutions are strategically positioned on the path to net zero. This is a slide I particularly like because we have plotted our main technologies vis-a-vis the time to large-scale market adoption, which means that, on that side, you have technologies that have yet to be proven at scale and, on this side of the slide, you have those technologies who are ready to be applied because they are already in adoption. As you can see, in fact, most of our current solutions are characterized by relatively short adoption time while, at the same time, we are developing the next-generation technologies of the sustainable future. Our blue solutions represent technologies available and commercially viable today. They service critical bridges to long-term green alternatives. Likewise, our Waste-to-X technologies are advancing towards e-fuels, paving the way for more sustainable energy vectors. Together, these innovations not only meet immediate market needs but also create a clear path towards a more fully sustainable energy ecosystem. To complete the picture, let me hand over to Mohammed Nafid. Mohammed?

Thank you, Fabio. It's a pleasure to be here. My name Mohammed Nafid. I have the privilege to be part of Maire Group for over 12 years now in various executive roles within Stamicarbon, MET Development and NextChem tech. And recently, I've been appointed the Regional Vice President for Sustainable Technology Solutions in the Middle East, responsible for all the business development for all our solutions in that region. You have seen the broadness of our technology portfolio. Let's try to understand the services offerings that we are presenting to our clients for our technology solutions. These services, our services, are defined to address specific technology needs, covering the full life cycle that the client is experiencing: from the initial feasibility all the way to the digital tools, all the way to the revamping and upgrading support that a client experiences in his lifetime. Everything starts with a feasibility study to understand and to prove the viability of our technology and the viability and the ability for us to meet the client objectives. Next, we offer licensing, process design packages, which give the right to clients to use our technologies within a process design, fully customized to the specific context of the client. Furthermore, we have catalysts and proprietary equipment that form an integral part of our technology value proposition. And these catalysts and proprietary equipment that we have are either developed fully in-house by ourselves or we developed them in collaboration with specialized technology partners. In the end, these products are produced by select and specialized suppliers. These products are very critical for us because they are guaranteeing the performance of our technologies and also optimizing them for the use in the processes of our clients. Finally, we have our digital services, which integrate cutting-edge technologies, offering real-time insights and data analytics to improve the operation and maintenance activities of our clients but also offer opportunities for training of their operators. Let's see how we are able to sell these technology solutions globally. The answer is to have a very strong local presence. As you well know, technology business is truly a global business. And it is, therefore, a very important part of our success to have the ability to effectively understand, connect and work together with our clients locally. By establishing dedicated regional platforms, we are able to be very proximate to our clients and we ensure that we foster strong relationships with traditional clients but also engage with new potential clients. It is also better for us to understand the ever-changing local context in the various regions and understand the key drivers that affect the clients' decisions, opportunities and challenges. The regional platforms are fully aligned with our business lines, enabling us to seize cross-selling opportunities, particularly with our E&C activities. Our regional model has been successfully proven, implemented over the last decade for our E&C businesses, and we have now further tailored it to also serve our technology businesses. What we see is that our clients appreciate this integrated model and the fact that we have a one-stop shop for both technologies as well as E&C. Moreover, we focus on developing and implementing in-country value strategies, which enhance local engagement and contribute to sustainable growth. This strategy not only strengthens our market position but also aligns with our goal of creating lasting value for our clients and the communities that we serve. Together, we are poised to leverage these relationships for mutual success. I'll leave the floor to Fabio, who will provide an economic view of what we have shown so far. Fabio?

Thank you. Thank you, Mohammed. Indeed, we do expect significant growth in our core markets driven by solid fundamentals and supported by the flexibility of our offering. Low carbon fuels and chemicals, blue hydrogen, circular fuels and recycled materials will contribute to growth rates in excess of 20%. At the same time, our urea leadership, so the leadership we've gained in decades in the urea field, coupled, as you have heard from Pejman, with our ammonia offering, will continue to provide a solid base to our STS revenues. Together, these trends position us for robust growth, ensuring we meet evolving market needs while driving sustainability. Let me now hand over to Sandro for his closing remarks. Sandro?

Thank you, Fabio, and thank you also to all the colleagues for your extremely insightful presentation. So as we look ahead, it is clear that the market environment remains extremely supportive. And our clients' investment strategies will continue to drive demand for both of our businesses. Our integrated approach will give also an additional hedge as clients are increasingly integrating sustainable solutions with more additional downstream assets. For this reason, NextChem's innovative technologies are well positioned to fuel our group's growth, providing an increasing contribution to our profitability. And of course, we remain excited about the prospects that we are facing and the opportunity to share this value creation with all of our shareholders. We remain focused on continuing to meet our objectives, which will be reviewed and shared with you at the time of the release of 2024 financial results next year. And to this extent, let me invite you already now. Once again, I want to see each and every one of you to our next Capital Markets Day, which is due to take place early March 2025. So with this invitation, I conclude my presentation, our presentation, and hand over to Silvia to start the Q&A session. Thank you. Thank you once again.

We will now open the Q&A session. We will start with a question from the audience here in Milan, the remaining questions from the chat. [Operator Instructions] If you are in the room, please wait for the microphone and kindly state your name and your company name before asking the question. Who wants to break the ice?

Massimo Bonisoli from Equita. I will start with a question on the new business units, if you can provide then how much each division accounts in terms of revenues and EBITDA right now. And how do you see the evolution in the very short term, in 2025, considering the very good number of projects you have been awarded over the past few months? Now we can put in then into perspective in each business unit. And the second question is more on your thoughts on your ability to have client reach, in the sense that I understand you are very good, for the client reach, on oil and gas, fertilizer company, chemical company. But maybe steel, cement, hard-to-abate sectors in general are maybe more out of reach, in your case. So any thoughts on potential JVs in that segment regarding steel, cement, or whatever, just to be closer to the end clients and customers.