NHOA S.A. (NHOA) Earnings Call Transcript & Summary

[Foreign Language]

[Foreign Language]

[Foreign Language] Let's start with a brief executive summary of where we are. Essentially, we can see here in a very natural our equity story, the story of a company which was born from a spin-off of the Politecnico di Torino and Politecnico di Milano and then gradually became a technology player specialized in the integration of storage systems then batteries, hydrogen and electric vehicles with renewable sources and the national and electrical grids. Born in 2005, then under Chapter 11 in 2013 when I joined, and I ran the financial restructuring on the company. In 2015, it was listed in Paris for a EUR 55 million market cap. In 2018, ENGIE acquired the company, 60% of the company to be precise, for an enterprise value of more than EUR 100 million. And in 2021, eventually the Taiwanese conglomerate TCC announced the acquisition of the ENGIE's stake in ENGIE Eps for enterprise value worth more than EUR 240 million. Then very last few weeks after the announcement of the acquisition by TCC, the closing of the joint venture with Stellantis, Free2Move eSolutions to create a global leader in electric mobility. We see that today we are more than 150 people, 19 nationalities. We have a great knowledge portfolio in terms of patents, more than 130 with more than 1,200 trade secrets. We've an access to an industrial complex up to 25,000 square meters in engineering centers, while at the same time, increasing our solidity in core business, which is energy storage and system integration, ranking as #4 for in storage systems integrator in the world with over 185 megawatts installed in 26 countries and 700 megawatts under development. But most importantly, with 2 full business line coupling storage and eMobility, and that's even before the Stellantis joint venture achieved great results with more than 50,000 EV charging solutions and 700 Vehicle-to-Grid fast chargers to be installed at the Mirafiori plant. In both eMobility and storage, we achieved great results with iconic products in eMobility like the easyWallbox, which is the only charging solution, really plug-and-play with no needs of electrical installation, Vehicle-to-Grid technologies and then the recently launched Charging-as-a-Service solution for Free2Move eSolutions, which essentially our subscriptions for home and public charging for a fixed monthly fee. Then in storage, we all know that we are developing some of the world's largest projects worldwide, mainly in the U.S.A., the islands of Guam, almost 300-megawatt hours of Solar-plus-Storage in Hawaii and in Massachusetts. Where we are today? Today, we are a technology provider and system integrator well positioned towards the storage and eMobility value chains with rock solid results, which translates the 700-megawatt towers under development, mainly in the United States to more than $170 million backlog of orders since the contract secured. So essentially, tenders awarded through our partners in which we are exclusive technology supplier. We couple such figures that are giving a clear visibility to the EUR 100 million revenue guidance in 2022 with a pipeline that increased to over EUR 1 billion of potential revenues, 80% in stationary storage and 20% in eMobility. But certainly giving a clear visibility towards our growth ambition of EUR 400 million revenues in 2025. Now looking at our evolution from the equity story perspective. We see the first 19 years of the company mainly devoted to research as a spinoff of the Politecnico di Torino and Politecnico di Milano, and then the financial restructuring. Then from 2015 to 2017, the first industrial positioning, together with the partners at the time we had Terna, Enel, Edison, Endesa, Toshiba and General Electric with systems installed in 5 continents from Somaliland, Spain, Chile, Maldives, Australia. And then in parallel, raising capital for over EUR 130 million to fund the construction of the new industrial play with the IPO of Euronext, with the financial markets, then with the European Investment Bank that believes in our story since the very beginning and then launching our technology road map, while the pipeline at the same time was increasing at that time up to EUR 250 million . Then in the most recent period, when ENGIE acquired the company in 2019, we had the great opportunity to scale up our industrial footprint and our positioning in the global markets, achieving great results with iconic tenders awarded all over the world in both sectors, eMobility and storage. And we are very thankful to ENGIE for that. Essentially, we have increased our scale in terms of projects awarded, but even more importantly, we built the industrial footprint that gives today not only visibility but also solidity to our further and future scale up. Then from the technological perspective, we clearly see our know-how evolution since the very beginning. You see here from 2005 to 2014, when we were a research center at the university level, the largest system developed was 12 kilowatts. And the integration of energy sources at that time was just solar plus small CHP systems with a power electronics that was almost entirely developed by us, and then energy storage integrated at that time was essentially hydrogen with molded acid batteries. Then we gradually evolved til 2017 to systems with a megawatt size integrating as an energy source, hydropower, but also converged conventional generation and conventional power plants and onshore winds, increasing dramatically the number of energy storage medias that we were integrating at that time. Therefore, we evolved from hydrogen to lithium titanate, then NMC and Zebra batteries, and also, at the same time, increasing the power electronics partners we have in order to play into a real open innovation platform to make our systems even more competitive. And then in the last years, we scaled up in terms of size. You clearly see an evolution from 12-kilowatt to 300-megawatt hours, which essentially demonstrates our ability to scale up from the technological perspective of approximately 25,000 times. In terms of size of our systems and eventually integrating electric vehicles within national grids, which is one of the most complex thing from the electrical engineering perspective. And also as an energy storage media, EV batteries, transforming car parts made by electric vehicles into the power generation of the future. Well, from the technological perspective, our position is still the same. You will remember this slide. We intentionally did not change the graphics behind the description of our technology. That still is the same. We just added the new commodities we now integrate into our technology platform. You will see electric vehicles and electric vehicle charging infrastructure, but essentially, we continue, as we were doing in 2015, to buy commodities and to manufacture, develop and patent power and control electronics that today are even more important than 7, 8 years ago. While the objective of what we are doing is still the same, the market evolves, but essentially, we continue to develop stationary storage systems and eMobility technologies. In this case, for the 3 original product lines, which are Giga Storage, Industrial Solutions and eMobility. Moving on, we see the latest evolution from the corporate perspective. Because we design it together with the Stellantis group to join forces to build a unique leader in Europe for eMobility, coupling the excellence in the automotive industry coming from the Stellantis Group to our excellence in developing innovative technologies in the energy sector and eMobility. Then essentially, this process started a year ago in July 2020, and we landed in November 2020 with the signature of the memorandum of understanding we announced to the market. Then in January 2021, we signed a full set of agreements. And after having obtained in March the related government clearances and antitrust green lights, we eventually closed the transaction in May 2021. We officially launched the joint venture with Stellantis, which is called Free2Move eSolutions. In terms of vision and execution goals, we really have to distinguish between where we stand today and what we are targeting for tomorrow. Today, indeed, we are one of the top 5 stationary system integrator worldwide but with a positioning that is built on innovation with an outstanding performance and availability track record, cost leadership and more importantly, thanks to the backlog of orders and secure projects, we have a high revenue and margin visibility through 2022. So essentially, what we target shall look at the 2023 horizon onwards and ideally looking towards 2030. That's the reason why we have a clear ambition to target at least 10% of the long-term market share in our market, notably stationary storage with the vision to become a market-leading EBITDA margin and ROI player, leveraging on competitive advantage and with a manufacturing plan, which is a smart manufacturing model. Positioning in the market with an extremely lean structure, and we have a strong leverage on the current footprint we have in Northern Italy, which is based on the well-recognized and world-class level industrial district. Then from the eMobility perspective, we already deployed more than 50,000 charging systems. We are scaling up together with Stellantis with our transformative joint venture. And certainly, we have already sealed an iconic project for the 25 megawatt and 700 Vehicle-to-Grid at the Mirafiori plant. But what we're looking for is to transform this business into a business model with almost 80% of recurring revenues, thanks to the subscription business model, becoming with no doubt the European leader in the eMobility arena and the leading provider for flexibility service in the European market. And this vision is orchestrated by an exceptional management team. You see clearly here the clusterization of our management team between the leadership team, the execution team and the corporate team, team of talents whose average age is 34 years old. And you clearly see the compelling background that all of them have and are coupling with their remarkable commitment to this equity story. I'll now leave the floor to our General Manager, Mr. Giuseppe Artizzu, who will explain more in detail our energy storage business line.

Ladies and gentlemen, good morning. I am delighted to outline in front of this audience our ambitions in the stationary energy storage market. As most of you should be aware by now, we target with our technology offering 2 different segments of the energy storage market. Within our Giga Storage line, we market to vertically integrated utilities, grid operators and independent power producers, utility-scale energy storage systems designed to help grids cope with the variable production profile of renewable energy sources. More specifically, within our Solar-plus-Storage offering, we designed optimized battery farms to couple with existing or new solar farms, transforming solar production into a reliable power supply. While in our utility scale storage offering, we develop a market, large-scale stand-alone storage systems, designed to deliver world-class grid support services. The 3 years spent within the ENGIE Group have given us the chance to move from projects in the tens of megawatt range to the hundreds of megawatts, which since ENGIE's announcement of a potential disposal, which removed the perception of potential conflict by the utilities and independent power producer. We've been proactively and successfully marketing to other energy companies. Within our Industrial Solutions line, we deliver megawatt-scale decentralized energy storage systems designed to optimize the power supply of industrial users and localized communities in either on-grid or off-grid environment. These are the cutting-edge applications where we built our expertise and made ourselves known in the market. Despite the takeoff in Giga Storage volumes, we preserve our leadership in this market segment and will deliver at least 2 more Industrial Solution projects in the Asia Pacific over the next 12, 18 months. Building on the capabilities and credibility achieved over the last 3 years, we have redefined our ambitions following the announced exit from the ENGIE Group, which removes 2 key constraints to our growth. The challenge of serving energy companies, while being perceived as part of a leading energy group and therefore a potential competitor. And the limited orientation toward EPC risk within the ENGIE Group. The ambition that we set for ourselves is a 10% market share in the global nonresidential storage market, and this, excluding Mainland China, Japan and Korea. While our Asian standing will certainly grow joining the TCC Group, for the time being, we still conservatively continue to consider the 3 large Asian economies as protected markets to the advantage of domestic battery manufacturers. Now a 10% market share in such a $10 billion-plus annual market corresponds to our top 5 position, moving from the current 2 -- 3% share that we estimate for 2022. This is mostly due to our later entry in the U.S. market and the later takeoff of our home European market. Adjust for this, and we are already in such trajectory. In our assessment, only Fluence and to a lesser extent, Wartsila, can currently make a stronger position in statement than ENGIE Eps in terms of operational reach and existing project references. But this is a market in which very few companies have the experience, know-how, credentials, and procurement volumes to be a serious contender for a leading global role. The race is open. And together with TCC, we are certainly one of a handful of credible contenders. Our claim to the elite of the global energy storage markets rest on 2 elements. In the short term, the visibility provided by our secured contract portfolio and the quality of our pipeline of projects. And in the medium term, the 4 pillars of our competitive advantage. First, our ability to innovate. We have been first in running off grid electrical systems or renewable only, first in retrofitting coal and gas plants with energy storage to increase their flexibility, first in using hydrogen-based storage to power remote locations, first in large-scale Vehicle-to-Grid projects. Innovation is what power our market recognition. Second, our systems deliver on their promises. Customer loyalty and repeat business is based on flawless execution and quality of aftermarket service. Third, while we do not compete on price, we build our cost leadership to effective system sizing. We do the same things that our competitor with smaller, highly innovative solutions. We have access to the skill set and cost competitiveness of the Northern Italian electromechanical district. And we can leverage the procurement synergies that our eMobility joint venture with Stellantis brings. And last, but certainly not least, our world-class engineering. We focus our engineering resources on our clients' needs to tailor best-fit solutions and build long-term relationships based on know-how and value creation. Thank you. And back to you, Carlalberto.

Thank you very much, Giuseppe. And now let's go on and focus on eMobility. We can see now a representation of the synergies we are deploying for Free2Move eSolutions together with Stellantis. With this joint venture, we are coupling the #4 global automaker with the #4 global system integrator for storage systems worldwide. Then we couple our presence in 130 national markets with our 15 years know-how in energy storage, and we couple their 25% market share presence in Europe with our technology leadership and over thousands of patents and trade secrets, and then eventually, coupling their industrial presence in more than 30 countries with our execution with more than 700-megawatt hours of storage systems online and under development. And then we all know that we will become very soon, NHOA, New HOrizons Ahead. So just to clarify. The question is what Free2Move eSolutions does. Essentially, we are active in the whole value chain. So from consultancy and potential assessment of the business case definition to the development, design, manufacturing of the charging infrastructure integrated with solar, storage and Vehicle-to-Grid capabilities, combining all of that with a unique IT and digital solutions. Then eventually to cutting edge installations, operations, maintenance, with all additional services that are related to charging packages and all the products that we are going to launch. Then we clearly see how we want to play in this field. Essentially with a pioneering approach with our restless focus on technology, innovation and the strong commitment in sustainability, thanks to our 50 young talents and more than 170 patents in industrial secrets, just at the eMobility level. The business line we see here are essentially free. The first one, we design, develop and commercialize charging solutions, a full suite of products for residential, business and public charging. Then the second one is certainly the most pioneering, the Charging-as-a-Service business line, which is based on the subscription packages that we recently announced and that would be described in a while. And then are devoted to ensure an easy charging journey with a full digital user experience, a sort of one-stop shop for our customers for the whole eMobility life. Then the third business line is Advanced Energy Services in which we manage essentially the future of eMobility Vehicle-to-Grid , advanced energy management, circular economy and therefore, second-life batteries in order to avoid the early recycling need. And overall, if I may, to reduce the impact on our planet. Here, we see the Charging Solutions that are on the market or that would be launched in the coming future. The easyWallbox, which is already available. The ePublic that will be available off-the-shelf in a few days. And the eProWallbox, where deliveries will start by the end of the year, which is the evolution of the easyWallbox up to 22 kilowatts and with a 360 degrees connectivity. Finally, the eProfessional to extend the easy experience of easyWallbox also to fleets and commercial industrial operators. We can now focus on fast charging solutions we have, which are obviously another market arena. Let's start with the eFast, which enables fast charging everywhere with no power or interconnection upgrade names, coupling fast chargers with storage. We have then the eFast Maxi, a DC fast charging solution designed for B2B customers. And then the most important one, the ePost for which deliveries will start in 2022. And that would be coupled also with other solutions to build essentially microgrids, combining fast charging with storage also of a larger size and solar. That is the reason why you see a container in the infographics here. So essentially, it is the only way to transform fast charging into a sustainable business model, because we all know the challenges that fast chargers have when connected to national grids. In other terms, we have the ambition to couple fast charger with mass scale storage and solar and ideally also bundling these fast charging microgrids with commercial industrial operation sites to deliver great services to the national grids and behind-the-meter services with C&I customers. This is an iconic ambition, and coupling our ability and the ability of Free2Move eSolutions, we might launch very soon an iconic project in this respect with the aim to electrify massively with fast charging, storage and solar power specific areas of the European landscape. Then we have eFleet which is a centralized Vehicle-to-Grid solutions for fleets. And the last one, which is certainly the most iconic from the technological perspective, the ePost CityWay, the only way we seek to massively electrify urban areas that cannot be addressed with a lot of fast chargers for obvious challenges at the distribution grid level. And this is the reason why we decided to patent a unique solution that enables fast charging everywhere with no civil work, nor any utilization of the distribution grade, but exclusively using tramway and trolley bus, connections that are already present in all major European cities. Then from the Charging-as-a-Service perspective, we see the key features of charging packages and the subscriptions we recently launched. You see here the subscription is a very easy business model. Essentially, you will have a single fixed monthly tariff, all in, and that's the reason why the brand name of SaaS solution is ALL-e. Everything will be embedded into a single app for home and public charging in Europe, fast charge, slow charge everywhere, giving to the customer an effortless solution for the whole charging experience at home or in public stations with no additional costs. Then as I mentioned earlier, it's now time to focus on Advanced Energy Services. It is a bit of the future of eMobility, and we are all well prepared for that. We have the ambition to be future-proof and to develop solutions that are future-proof. Thanks to our V2G technology and with our second-life battery play, essentially using the batteries that are coming from the cars into a second life in stationary storage. We extend the period of utilization of such batteries up to 30 years. So essentially, we dramatically postponed the tremendous recycling need we have to face, and we postponed the impact on our planet. And this is a game changer, as in the next 30 years, certainly the recycling technologies will be even more efficient, optimized and sustainable. And we strongly believe that having in mind the circular economy is of essence in order to give and guarantee a future-proof sustainability to all our solutions. And this is the reason why we monitor very closely the market and the technology evolution in battery recycling. [Presentation]

I really hope you enjoyed our little tour. And now let's focus on the technology we develop in our facilities and in our engineering centers. We see here all the products we have on offer from the energy source perspective. So essentially, our technology platform translated into products. Our technology platform is divided in 4 families: Store, Convert & Connect, Move and Control. In energy storage, we have different containerized solutions. And certainly, the most iconic one are the EnergyHouse High Density and the PowerHouse High Density, which can store up to 6-megawatt hours of energy into a single 40-feet container or from the Convert & Connect perspective, 14-megawatt power into a single container. Those solutions are obviously designed for utility scale storage or utility scale Solar-plus-Storage, and they are certainly not the solution for a smaller industrial application. Where in this case, it is definitely more suitable hybrid solution that couples batteries and power and control electronics into a single container, storing almost 4-megawatt power and up to 3.5 megawatt hours, which is the case of the HybridHouse that you see in the second line. Then you see the integration of other storage technologies and other media in the third layer of this slide, when you can see the Hydrogen Production House and the HydrogenHouse Power-to-Power, which is our original technology, even if now played with a system integration business model. Well, not anymore as a product manufacturer, I mean a role that will leave to pure electrolyzers and fuel cell manufacturers that we specialized in facing the big challenge of cost reduction for these technologies, which is an angle in which we don't want to be in. Essentially, we integrate electrolyzers and fuel cells to use hydrogen to store electricity and therefore, converting electricity and water into hydrogen with the power-to-gas module and then converting back the stored hydrogen into electricity, thanks to the gas-to-power model, all embedded into a single container. And then eventually the HydrogenHouse Fuel, a system that essentially applies our system integration and energy management capabilities to traditional refueling stations and electrolyzers. Then we have the Convert & Connect family. I already mentioned the PowerHouse High Density with 14 megawatts in 1 single container with then smaller solutions in 20 feet containers. So essentially, we decreased the size of the standardized container, decreasing the power to increase modularity and optimization. Then inside such containerized solutions, which are plug and play, we see our proprietary developed converters and inverters. So the C-BESS High Density up to almost 2-megawatt power and our C-BESS 1,000 Family with the related ComHouse for grid connection that are plug and play as well. And the important aspect here is that we have standardized also the grid connection in interconnection equipment. So in the ComHouse in the picture, you see the transformers, you see all the equipment which is necessary to integrate an energy storage systems into the national grid, which is an exception in the sector. Because typically, when you see the marketing materials of all our competitors, they are marketing their full plug-and-play solutions, but excluding from the description and more importantly, from the cost all grid connection and the interconnection stamps, which is a material item into the balance of plant and the balance of system of any storage solution. Then we see the Move family with the products that I just mentioned. You see also special metering built for residential applications. And then in the Control family house, you see one of the most important products, which is the Prophet EMS, an iconic energy management system that is coupling artificial intelligence but also MLIP architectures and algorithms in order to optimize energy storage solution. But also an eMobility integration within the electric grid with a compelling and iconic remote monitoring platform entirely based on AI, which is K-Wize and the related app we have developed and that our customers can use on a daily basis. Then we see our 2023 technology road map. Again, with a single common layer in terms of narrative, which is the seamless link between energy storage and eMobility. So in each single family, Store; Convert & Connect; Move; and Control, we are developing technologies for both energy storage and at the same time for eMobility. Then in the Store family, we want to pioneer and anticipate in terms of technology road map the market evolution. And that's the context in which we are developing and pushing for a new generation of chemistries, leveraging on the partnership with Stellantis. Essentially, the aim is to develop an iconic second-life solution and second-life battery integration to create aging models based on artificial intelligence and MLIP modeling to optimize usage of such chemistries. Then we will continue the effort in standardization and optimization of our high-density and highly competitive and containerized solutions. In the Convert & Connect family, we really see the developments we are making and we are going to develop in the next few years in terms of vehicle synchronous machines to maintain at least advantage in managing grid forming and advanced predictive functionalities that are key competitiveness drivers for any utility scale storage solution in the coming years. And then the last one, where you see the label patented is the eBESS-MMC development, which is essentially the unique way we patented to integrate into any storage solution the batteries coming from electric vehicles. Essentially, a power electronics, a modular multilevel converter, which will enable the usage of any battery, new or second life, with a full modularity and a perfect balance of system. So essentially, irrespective of the electric vehicle and irrespective of the brand we will use, thanks to this technology, any kind of battery, first or second life, into our storage solution, stepping up our system integration level and our competitiveness. We will not be obliged anymore to use stationary storage, traditional batteries, but we will play with any battery, giving also future and extending lifetime of any battery til the very end to essentially absorb as much as we can in terms of power and energy before recycling. And I think this is the only way to play sustainably in this new electric and battery-oriented world. Then the 2023 technology road map from the Move perspective, which is based on products we already mentioned and with the clear road map we briefly discussed. And you see here, the huge importance we are giving to Vehicle-to-Grid and vehicle-to-X functionalities, so essentially vehicle to everything, vehicle to home, vehicle to grid, vehicle to commercial industrial, full integration with solar, full integration with batteries. I mean, that's a unique play, really fully vertically integrated that will give to eMobility a seamless integration with the surrounding environment and the seamless competitiveness and the seamless sustainability in any product we develop. And then eventually, last but not least, the Control family with an entirely AI and MLIP-powered Prophet EMS solution. So essentially, the evolution of our energy management system, which is optimizing at the microgrid level, any asset, any product, any digital app for our customers. So in a nutshell, the brain behind any solution and any possibility to integrate different power sources into one single hyper-efficient, hyper-optimized and hyper-sustainable system. Then the last point is a brief description of our current R&D activities and intellectual property structure. You clearly see where our patents and trade secrets are positioned in terms of value chain. You see how we are structured. You see here also the open innovation platform that we have developed over the years with very solid partners and more importantly, with our historical partners, the Politecnico di Milano and Politecnico di Torino, a worldwide recognized excellence in electrical engineering in the last 130 years. From the intellectual property strategy perspective, you see the evolution we had because you will see the majority of our patents in hydrogen, while the majority of our trade secrets at the system level are in power electronics. There is a clear rationale behind and there is a historical evolution rationale behind. Because at the very beginning when we were a start-up and mainly focused on hydrogen integration, we were more focused on patenting and innovation we were developing. While over time, this IP strategy changed and we decided to evolve our intellectual property portfolio more towards industrial secrets and trade secrets, coupled with few selected innovations which are patented, while continuing the patent exercise specifically for few eMobility products, and eMobility innovations. So essentially, the reason why we have a stronger exposure towards trade secrets in systems and power electronics, but rather a strong exposure in patents on hydrogen is because of the historical evolution of the company, and this is because of the evolution of the intellectual property strategy management over time. And now I will leave the floor to Mrs. Ilaria Scarinci, our Chief Financial Officer, to present the historical performance and the full year 2020 results.

Good morning, ladies and gentlemen. Looking at our historical performance. From a revenue perspective, you know we started from less than EUR 1 million in 2015, achieving EUR 10 million in 2017 and then doubling in 2019 to more than EUR 20 million. In 2020, COVID-19 highly impacted our revenue recognition because all the main projects expected to recognize revenues in 2020 were delayed to 2021, 2022. So 2020 revenues considering the huge impact of COVID-19 are almost irrelevant on our equity story. From the backlog perspective, in the last 3 years, we had a backlog ranging from EUR 25 million to EUR 36 million, but the biggest improvement was made in the last 18 months, when we have been awarded with more than EUR 112 million project that considering the EUR 24 million backlog some up to more than EUR 145 million, which give us the full visibility depending on the revenue recognition, but certainly over EUR 100 million revenues in 2022. Just a small side note on projects secured. We do not call it backlog because from an accounting perspective, we consider backlog just when after the project award. We complete the signature or the full set of agreement, EPC and so on and until the notice to proceed. This is a standard practice in the market for large-scale project financing. But certainly, these do not jeopardize the fact that the tender was awarded to EPS partner. EPS is the exclusive technology supplier, and therefore, the project is secured. Gross margin decreased from 40% in 2017 to 27% in 2019 to increase to 35% in 2020. This is mainly due to the increase in the size of our project, which is well represented also by the increase in our size and pipeline. 2020 margin increased by 8%, but this is an accounting effect due to revenue mix. And frankly, this is not certainly telling of a trend. The EBITDA is lower compared to last year. But again, this is a natural effect of the investment we made in terms of people and industrial footprint, which was just partially offset by the gross margin we generated with the limited revenues we've booked while establishing the industrial footprint needed to execute the over EUR 140 million contract in the next 2 years. You can clearly see the correlation between the news flow and the stock price evolution. The stock price until 2019 was ranging between EUR 9 per share and EUR 14 per share, then started raising up when we announced the 300-megawatt hour product in Guam and it decreased when -- in the context of COVID-19 pandemic. It then raised again when we announced the largest V2G project in the world, the easyWallbox and the Hawaii 240-megawatt hour project. Then it decreased again when ENGIE announced the divestment and then raised materially when we announced the signing of the MOU with FCA, then with Terna, when we have been awarded with a 70-megawatt Fast Reserve. Finally, when we announced together with Stellantis the creation of the joint venture Free2Move eSolution, we have seen in other major base. The following evolution is not really correlated with the news flow. It seems more correlated with speculative plays, but the stock price continued to rise after the announcement of the project Anza in U.S.A. and the disclosure of the new company name for the joint venture with Stellantis. Then after the announcement of the acquisition by TCC of the 60.5% of ENGIE stake in ENGIE Eps at a price of EUR 17.10 per share, our share price stabilize slightly above that level. Going to 2020 financial results, you clearly see revenues amounting to EUR 11 million, down 45% compared to 2019, mainly as a consequence of global restriction due to COVID-19 and already strong delays in both project execution and project development. Construction schedules were dramatically affected by COVID-19 and related logistics restriction. But nonetheless, we have been able to complete construction of Sol De Insurgentes Solar-plus-Storage project in Mexico whose test run has been concluded; and achieved the commercial operation of the Agkistro hydrogen system in Greece; the storage system in Leini connected to the 400-megawatt thermal power plant in Northern Italy; and microgrids in California and Comoros. Despite the decrease in revenues, backlog and contract secured sum up to more than $170 million and 700-megawatt hour in U.S.A., Europe and Africa. Backlog is $39 million, up 12% compared to 2019 with over 50-megawatt hours between California, Massachusetts, Comoros and Italy. Contracts secured amounted to $133 million, thanks to approximately 650-megawatt hour of projects secured between one, New England and Hawaii. Pipeline increased by 46% in the same period, reaching more than EUR 1 billion, thanks to the rapid market acceleration we are experiencing across all geographies, particularly in North America, Europe and Australia. It has to be noted that approximately 50% of the EUR 686 million pipeline announced in the full year 2019 results were represented by projects under development with ENGIE in U.S.A. and Europe. 1/3 of such projects have been eventually converted in the current backlog and contract secured. During 2020, ENGIE PS added over EUR 600 million in the pipeline developed almost entirely outside in ENGIE Group and eMobility representing 21% of the pipeline, thanks to the joint venture with Stellantis. You see here the geographical spread of our capacity online. About our backlog and contract secured, you clearly see the weight of Americas while in the pipeline, it is certainly important, but set off also with the fact that the rising market trend in Australia and Asia Pacific generally. And then you see the rounded weight of our capacity under development between Europe and U.S.A. You see here gross margin plus 8%. As anticipated, this is an accounting effect due to revenue mix, and this is not telling of a trend. The minus 47% in EBITDA is the natural consequence of the revenues drop. Here, you see revenues and backlog breakdown. What is interesting is the difference between the revenues and the project backlog in terms of geography spread. Revenues today are essentially concentrated between Europe and Americas, while the backlog is almost entirely concentrated in Americas. On the right part of the slide, you see clearly the rising impact of eMobility. Here, you see the cost of personnel evolution, plus 21%. That is in line with the total FTE increase. 15% of the new hired people are in eMobility. The other to support the natural expansion in storage and to manage and to cope with the network growth that we will have in the next 2 years, thanks to our secured portfolio. Then operating expenses, plus 13%. This is a physiological growth in this specific moment of the company. You see now the breakdown of nonrecurring expenses that are decreased on a yearly basis and also some details of impairment accounted during the year. Part of the nonrecurring expenses will be the Family Working program. A crucial part of this Family Working program was the partnership with the San Donato Group, which is the largest medical research center in Italy with which we designed entirely our working areas and our offices and industrial plants. As far as the investments are concerned, you clearly see the investments in equipment and services are concentrated in the Move technology family and in the Drosso projects, so essentially in eMobility. While from the personnel perspective, the investments are more concentrated in Control, Store and Convert & Connect families and therefore, in energy storage. This is naturally and essentially due to the fact that energy storage, we have invested approximately EUR 50 million in the last 5 years, mainly in equipment. Then in this phase of the R&D investment, we will invest more in personnel. While in eMobility, we are at the beginning of this curve. And as a result, the investment in equipment is higher than investment in people. Then from the net book value evolution perspective, the right part of the slide, it's interesting to note the slightly over EUR 9 million in intangible we currently have compared to the number of patents and trade secrets that we have. Then last point on our net financial position. You see here the evolution.

Thank you, Ilaria, and now let's go on and focus on ESG. We used the wording beyond ESG principles, simply because, as you know, ESG is at the core of what we do. You know that our mission is to unlock the global transition towards clean energy and sustainable mobility, shaping a better future for the next generation living in harmony with our planet. But more importantly, our vision is to be a technology global leader and the world's reference to shape a sustainable future through unparallel innovation, world-class engineering and flawless execution, providing our customers with net zero power solution and a sustainable cost advantage. I mean this is the reason why I'm a bit dazed when some of our stakeholders are asking an ESG rating or to try to deep dive traditional ESG due diligence criteria that I mean, are more suitable for companies that certainly do not have an ESG at the center stage. In essence, that's the reason why we say beyond ESG. Having said that, in terms of organization, we have, as anticipated, a team of 157 people, including 46 women with different -- 19 nationalities with an average age of 34. So essentially, a team of young talent, 21 of them ranked in a dedicated academy talent program. From the integrated management system perspective, we have more than 750 qualifying suppliers. Our factory acceptance success rate is essentially 100% and our noncompliance ratio is essentially 0%. And this is the excellence we have demonstrated in field in 26 countries and for 15 years, thanks to our rock solid processes and constantly updated integrated management system, but more importantly, thanks to our extraordinary health, safety and quality teams. And then eventually from the health and safety perspective, again, we go beyond ESG because yes, we monitor traditional KPIs like frequency rate, fatal accident rate, severity rate, lost time accident rate, which is zero, obviously. But more importantly, we monitor the timing from any alert event or risk identified to the issue of a new procedure. And then you clearly see our compelling rates and the very quick and fast organization we have ready to react to any problem or any event with a new process, updated procedures to become more and more solid from the industrial perspective with a total focus on the industrial excellence and safety centrality. Again, we go beyond ESG as we do not focus on traditional safety KPIs, but rather, we're having a faster organization in identifying and preventing risk. But there is another reason why we go beyond ESG. As we decided to publish in full our internal diversity and gender gap analysis, not just a couple of KPIs to tick the box, but rather to a full set of analysis, we made internally under the stimulus and the valuable inputs of our independent board members. We know it is not certainly a market standard and that many companies choose not to. But we actually did it to encourage other companies to disclose them to support a more open dialogue on such very core aspects. We see here the gender distribution by department. I mean, in our company, we are suffering of a structural problem, which is the increasingly low rates of female students in engineering degree programs. We can just note that in Italy, only 20% of engineering students are women. And even worse, 12% of engineers in the U.K. are female. Not to mention that over the past few years, 40% of women have left the engineering field. This is certainly also driven by old gender stereotypes that historically turned engineering into a traditionally male-dominated field with a very limited number of women working in our sector. We are obviously better than the market because out of our 157 total employees, 29% are women. And then there is a very simple reason why because we strongly believe and invest in women. And if we look -- and you clearly see that in the right part of the slide, the number of women, excluding industrial operations in the engineering areas of our company, we see a ratio which is impressively higher, 45% women, and that's because of a 32% presence in business line and 62% in corporate functions. More in detail and going a bit deeper into the analysis. We see that as of the end of May 2021, more young women have been hired than men. In fact, 52% of the young cluster, 23 to 35 are women excluding industrial operations and engineering. And in the other cluster, women represent 36%. And then in the senior one, which is, per se, a minor cluster in our company, women are 15%. Then the question is, what about the average salary and what about the potential perfect gender parity we are targeting in terms of remuneration. Figures show very clearly that there is not at all any kind of gender gap. And if it exists, it is slightly better for women because they are paid on average 0.9% more than men. For departments, we see that in corporate functions, women are paid slightly better, in business, slightly less, but essentially, there is a perfect gender equilibrium in terms of remuneration policies between men and women. Last observation. We clearly see that even in the young talent cluster, women are paid slightly better, plus 8% compared to a minus 2% in the adult cluster. So long story short, there is a huge commitment to disrupt this structural gender gap, but certainly, we are positioning as a company that is investing and finding women even more than the market availability with a perfect gender parity in terms of remuneration. And we have the ambition to launch in the context of the new plans that we are targeting. And in the upcoming Capital Markets Day, we will like to launch after closing of the transaction with TCC an even more ambitious program in this respect in order to disrupt with an iconic program this gender disparity. In the context of the acquisition by TCC of the 60% ENGIE stake in ENGIE PS, we clearly declared to the market the management commitment we had as a leadership team towards the new shareholder, and therefore, that's the reason why we -- first, we strongly supported the new equity story joining the TCC Group since the very beginning of the ENGIE disposal process. But more importantly, we feel the responsibility and we feel accountable to secure a sustainable long-term value creation with TCC, which is a responsibility towards our stakeholders but again, more importantly, towards our people. And then that's the reason why we immediately reshaped our operating model and adapted our organization to boost the potential and the synergies with TCC, while keeping at the same time, the synergies with Stellantis that were already identified in Free2MoveeSolutions. We see here the new operating model, which is twofold. So we will not anymore have 3 product lines, Giga Storage, Industrial Solutions and eMobility, but we simplified our operating model into 2 global business lines, energy storage and eMobility to simplify further and increase the focus of our resources. While the global business line energy storage is divided in this operating by geographies, Americas, EMEA and Asia Pacific, we have a clear leadership team accountable for. The global business line eMobility is operating by brands, which is an obvious choice in the context of the Free2Move eSolutions that will just start with the Stellantis brand as an immediate starting point, which is the 25% of the European market, but with a clear ambition to go well beyond and potentially distribute our solutions also to other carmakers and corporates. You see here a summary of how we see the TCC acquisition as a potential transformational step for our equity story. Because, first of all, we found with TCC an ambitious industrial partner with a blue chip standing and a global sustainability play. We talk about the company with more than $1 billion EBITDA, solidly focused on circular economy and sustainability, $10 billion market cap and headquartered in one of the fastest-growing and less COVID-impacted economies in the world. Then as a second layer, TCC is giving us instant access to a world-class supply chain and major untapped markets, which are the Asian markets. You will remember that we never indicated into our addressable market analysis, China, Korea and Japan for obvious reasons because it's totally unrealistic without an Asian partner to think of having access for real to the supply chain or even enter into such markets in a serous way. And then as a third layer, we are looking for a worldwide industrial expansion in the sustainability sector. You will remember that TCC already invested more than $1 billion in EMEA and has also a high-profile joint venture with -- in Taiwan with Veolia. They are today the largest lithium-ion cell manufacturer in Taiwan, and they have a long established battery manufacturing and R&D plant in Canada. And that's the reason why for our new equity story, we have been inspired by a myth -- by a story which is Noah and the universal Deluge, the story of a patriarch chosen by -- to perpetuate the human race. In Norse mythology, you will certainly note that several aspects remind us our day-to-day life. Surely, the climate change has arrived to a point in which the humankind is called to change its habits to survive. Science is clearly stating that the only way we have to make our planet sustainable in the long term and a better place for the next generation is through a massive electrification, massive investments in renewables, coupled with storage and massive penetration of electric mobility. As Noah saved humanity during the universal Deluge, we have a role to play in the disruption of the status quo, shaping the future of our next-generation living in harmony with our planet. Another reason why we have taken inspiration from Noah is because Noah is a myth present in different religious views. In ancient Greece, in Judaism, Christianity, Islam and also in Hinduism. This is to say Noah is about the universal message of making a difference in the future of the world. And that's the reason why we decided to take inspiration from Noah and to launch the new brand that is briefly explained in this video. [Presentation]

And this is NHOA, the new brand we will adopt at closing of the ENGIE transaction with TCC. You will note that NHOA stands for New HOrizons Ahead, taking us to a potentially enlightened and sustainable future, recalling as said, Noah, the founder of the renewed humanity. But with an unconventional approach, and this is the reason why the H is placed in a different position. The typography, which is very simple, is characterized by the underlying that represents the horizon. And more importantly, the omega, recalling a rising sun that dawn on a new era. But you will certainly note that the omega is also symbolizing the Ohm's law electrical resistance, which is a bit of the root of this company. Then very last point as a sort of anticipation, waiting for all the needed government approval to close the block trade between ENGIE and TCC, we are heavily working on a new industrial plan in order to set a clear, compelling and ambitious business plan in the context of the new equity story. And we will announce it very soon to the markets. Because a shareholder change of this magnitude requires a new business plan and new guidance, new KPIs, new objectives, new commitment and new responsibility from the management team, a real master plan. And that's the reason why we intend to launch the master plan, disclosing the objectives, the targets and then the plan in the coming days and weeks as soon as the deal will be closed. What I can anticipate right now is that the name of this new plan would be 10x Master Plan. So this is just an anticipation, and I hope to communicate very soon and to disclose to the markets this Master Plan in the Equity Capital Markets Day that will follow the closing of the deal. Thank you very much. I will now leave the floor to Ms. Chiara Cerri, a member of my staff, that will take us through our next points of the agenda, opening the section focused on governance and voting results.

Good morning, ladies and gentlemen. This year, the terms of office of 3 directors, Mr. Carlalberto Guglielminotti, Mr. Giuseppe Artizzu and Mrs. Alice Tagger are coming to an end. In addition, an independent director, Mr. Massimo Prelz Oltramonti, resigned from his duties on February 2021. And the Board of Directors has decided for the co-optation of Mrs. Veronica Vecchi as new independent Board member of the company. The ratification of the co-optation of Mrs. Veronica Vecchi is proposed for your vote. I also inform you that the directors decided to propose to your vote the renewal of the Board mandate of Mr. Carlalberto Guglielminotti, Mr. Giuseppe Artizzu and Mrs. Alice Tagger as members of the Board of Directors. Following this meeting and subject to the adoption of the resolutions, your Board of Directors will be composed by these Board members: the Board of Directors will be then composed of 10 members: 4 different nationalities; 3 independent directors; 4 women; 1 executive director; and 4 directors, representing the majority shareholders of the company. This composition reflects the diversity and complementarity of profiles and experiences, skills and cultures sought by the Board. It is important to underline that this composition will be revised after the closing of the transaction with the new majority shareholders of the company, TCC. Concerning the committees assisting the Board of Directors, ENGIE Eps has 2 specialized committees, the Audit Committee and the Remuneration and Nomination Committee. During 2020, the Audit Committee has worked on the financial accounts of the company, reviewed the half year and full year results. The Remuneration and Nomination Committee, in its 4 meetings during 2020 has reviewed the compensation package for the corporate officers of the company, worked on the proposal of attendance fees and their allocation and managed the process regarding the Board of Directors' self-assessment. The Board of Directors is assisted by 2 other committees, the Independence Committee has been established with the purpose of reviewing significant agreements between ENGIE Eps and the ENGIE Group entities. The Ad Hoc Committee has been established in the context of the selling by ENGIE of its 60% stake in ENGIE Eps. Its main role is to select and recommend to the Board an independent expert to be appointed to supervise the work of the independent expert and to draft the reasoned opinion to be submitted to the Board. The Board of Directors appointed as its independent expert, A2EF, Associés en Evaluation et Expertise Financière. The Ad hoc Committee is also supported by the financial adviser, Lazard, and by Cleary Gottlieb as Legal Adviser. We will pass now to the presentation of the new statutory auditor. The Board of Directors acknowledging the expiration of the mandate of RBB Business Advisers as principal statutory auditor of the company has decided to propose to your vote the renewal of the mandate to RBB Business Advisers for a term of 6 years, expiring at the end of the Shareholders' Meeting to be held in 2027. This information is subject to your approval. I will now leave the floor to Dr. Cristina Cremonesi, Head of Communication and Investor Relations, to present you the ENGIE Eps Investor Relations with its shareholders and investors during 2020.

Good morning, ladies and gentlemen. As evidence of the extreme attention that ENGIE Eps puts on investor relations in 2020, the company had more than 100 one-to-one and group meetings with investors and analysts. More specifically, we met 69 investors and financial players and the management had several communications with 14 of them. We took also part in 2 investor conferences, the Societe Generale Nice conference in May and the UBS Renewables and Energy Transition Virtual Conference in September. And we also attended one Road Show organized by Societe Generale in November 2020. To keep the market updated with our activities in 2020, we published more than 20 press releases, almost 1 every 2 weeks. And we had also 3 investor conference calls in March of 2019 annual results and 2020 outlook update, in September on half year 2020 financial and business update and in November on the signing of the memorandum of understanding with FCA that led to the creation of the eMobility joint venture, Free2Move eSolutions. In 2020, we also had our first digital corporate event, the 2020 Annual General Meeting. Then in 2021, we started to have our conference investor calls via video call, and we will continue to have these more interactive meetings in the future. With the occasion, let me remind you of the interactive Q&A session for investors that will take place right after the closing of this meeting. Please visit our corporate website for the connection details. I now leave the floor to Mrs. Ilaria Scarinci, our Chief Financial Officer, who will present you the resolution pertaining to the remuneration of corporate officers.

Following the rules of the Pacte law and the accordance with the Ordinance no. 2019-1234 dated 27 November 2019 on the compensation of corporate officers of listed companies, supplemented by the Decree 2019-1235 dated 27 November 2019, transposing the Shareholders' Right Directive, you will be invited toward the compensation policy applicable to corporate officer, the Chairman and the Board of Directors, the CEO and the members of the Board of Directors from 2021 financial year, which are detailed in Paragraph 13.1 of the 2020 Universal Registration Document. Also, in addition to the individual ex-post vote on the remuneration granted to the CEO and to the general manager individually, you will also be invited to vote on overall compensation and benefits of all kinds granted for the financial year 2020, overall ex-post vote, to the corporate officers. The details of compensation are laid out in Paragraph 13.2 of the 2020 Universal Registration Document, as amended by the update of the Corporate Governance Report published on 7 May 2021. Let me now present the compensation of the Chief Executive Officer. CEO compensation is essentially made by 2 components: the first 1 is the short-term cash-based compensation; the second, the medium-, long-term compensation, SARs, Stock Appreciation Rights. And as we will see in the next slide, a retention plan. For the short-term components of the CEO compensation, Mr. Guglielminotti received in 2020 a total compensation equal to EUR 318,000, composed of EUR 195,000 fixed salary; EUR 25,000 benefits, essentially a company car and health insurance; and EUR 97,500 variable compensation. Variable compensation is based for 60% on quantitative objectives, directly correlated with company's performance indicators to accelerate the conversion of qualified pipeline into backlog to maximize the value of the eMobility activities and to maximize the top line. Those indicators weight respectively 25%, 15% and 20%. And for 40% on the qualitative objective is based on the definition of a new technology road map and achievement of the full management commitment to support the strategy review. The Board of Directors consider all objectives met, and on 24 March 2021, decided to increase the percentage of variable compensation on fixed compensation from 35% to 50%, with an increase of 43% with respect to the variable compensation approved by the AGM 2020. Looking at the ex ante vote on 2021 compensation, CEO and General Manager compensation have to be considered in the context of the announcement of ENGIE on 19 April 2021 of the sales to Taiwan Cement Corporation of the 60.48% stake in ENGIE Eps, which is expected to close during the third quarter 2021. Following this announcement, the Board examined the proposal of a short- and long-term retention plan for both Mr. Carlalberto Guglielminotti, Mr. Giuseppe Artizzu, consisting in an increase of the fixed and variable compensation as well as the introducing of a long-term retention plan. Irrespective from the closing with TCC, the proposed total compensation for the CEO is increased by 19% with effect from 1st January 2021, amounting to EUR 378,000. In detail, EUR 235,000 as fixed compensation, EUR 25,000 as benefit and EUR 118,000, equivalent to the 50% of fixed compensation, as variable compensation. Subject to closing with TCC, Mr. Guglielminotti fixed compensation for 2021 is increased to EUR 300,000 and his variable compensation is increased to 100% of his fixed compensation. This proposal was elaborated by the Remuneration and Nomination Committee with the support of Independent Expert, Heidrick & Struggles International, who conducted a detailed benchmark analysis of comparable companies in the market. On the medium-long term component of the CEO compensation, it is important to underline that 2021 is the last vesting year of the stock option plan dated 21 April 2015, which in 2018 has been converted into a Stock Appreciation Rights plan vesting through 2021. Looking at SARs such plan, we have transformed SARs. In essence, the stock option granted in 2015, and that Mr. Guglielminotti should have exercised at the closing in March 2018, upon ENGIE acquisition. However, at that time, Mr. Guglielminotti decided to postpone the exercise of such stock option in the best interest of the company and in order to outline its commitment to the integration of EPS within the ENGIE Group. So this original stock option plan was transformed into SARs. The transformed SARs vested and exercised during 2020 amount to 75,800. The number of transformed SAR that are still to be exercised are now limited to the remaining 75,800 in 2 tranches, in June and December 2021. This is the reason why, in parallel, also a new plan for additional SARs was approved in 2018 with vesting throughout 2021. Such additional SARs were not indexed to the stock price, but rather exclusively to performance under the 2020 strategic plan launched back in 2017. As a reminder, unfortunately, the original additional plan targets have not been updated to the 2020-'25 long-term strategic plan, which, as you may remember, provided for a revised guidance on 2020 and postponed the EUR 100 million guidance to 2022. As of today, 20% of the additional SARs are subject to the performance related to targets that are fully reached, while the remaining 80% of the additional SARs will depend on the assessment of performance targets that will be made by the Board of Directors and/or on the timing of closing with TCC that would trigger the acceleration of the vesting scheduled in December 2021 and of the assessment of performance targets. With reference to the new long-term incentive, the Board of Directors approved the proposal of the Remuneration and Nomination Committee exclusively subject to closing of the transaction with TCC. In detail, the long-term incentive is represented by a retention bonus amounting to EUR 1 million, that would be subject to the 3-year cliff vesting and subject to the condition of presence only. As a reminder, Mr. Artizzu receives a compensation as Board member of the controlled company, EPS Italia. The compensation received by Mr. Artizzu in 2020 is detailed as fixed compensation for EUR 140,000 and viable compensation for EUR 35,000, corresponding to the 25% of fixed compensation. The variable compensation allocated consider 100% of the objectives met. Upon remuneration and nomination committee proposal, the variable remuneration was allocated considering for the 50% on the quantitative objectives directly correlated with the company's performance indicators; acceleration of the conversion of qualified pipeline into backlog; maximize the value of the e-mobility activities and improvement in target profitability in storage; and for the 50% on the qualitative objective based on the definition of the revision of stationary storage commercial plan; and establishing product lines, planning and control tools. As anticipated, the compensation that Mr. Artizzu will receive in 2021 depends on the closing of the transaction with TCC. Irrespective from the closing of TCC operation, fixed compensation is increased to EUR 180,000, and variable compensation is settled to 35% of his fixed compensation. Targets are set settled at 70% on quantitative targets, revenues, EBITDA and contract secured; and 30% qualitative targets, talent management and environmental, social and corporate governance objectives. Subject to closing with TCC, Mr. Artizzu's fixed compensation for 2021 is increased to EUR 200,000. His variable compensation is increased to the 50% of his fixed compensation. On the medium long-term component of the general manager compensation, we refer to the stock option plan allocated in 2015 and in 2016, converted into stock appreciation plan in 2018 and long-term incentive plan. Looking at the SARs plan, we have the transformed SARs related to the plan allocated in 2015 and 2016, which vesting period was extended in the context of Engie acquisition occurred in March 2018. And the additional SARs allocated following the transaction, partially subject to performance that, as mentioned before, were setted on the plan released on 2017. Mr. Artizzu vested 54,000 transformed SAR and 15,000 additional SARs in 2020. The transformed SARs vesting in 2021 are 39,800, while additional SARs vesting in 2021 are 27,800; 17,100 of which are subject to the assessment of performance targets by the Board of Directors and timing of closing with TCC that may cause an acceleration of the vesting and the right to exercise additional SARs under the good labor conditions. Also for Mr. Artizzu, the Board of Directors approved a EUR 300,000 retention loss, vesting with conditional presence only, with a 3-year cliff vesting and a bullet payment at the third year, subject to closing with TCC. Thank you for your attention. I now leave the floor to our auditors.

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Good morning, ladies and gentlemen, and welcome to the investor live Q&A session that follows our Annual General Meeting 2021 and Investor Day. This conference call is recorded. If you could not attend the whole meeting, please note that the transcript presentation and detail will be available on our corporate website in the Investors section under the AGM 2021 page. The Q&A session will be hosted by our Chief Executive Officer, Carlalberto Guglielminotti. And with him, there will be Giuseppe Artizzu, our General Manager; and Ilaria Scarinci, our Chief Financial Officer. We hope you enjoyed our AGM 2021 and Investor Day. And we are here to answer to all your questions. [Operator Instructions] Before we begin, I just want to point out that any forward-looking statements made during today's Investor Day or call are subject to the risks and uncertainties mentioned in the safe harbor statement that you can find on the last page of the presentation that is found on our website. This includes also the risk that the transactions discussed during today's call remains subject to the standard conditions for this type of operations as well as any other risks and uncertainties associated with the execution of the transaction of this type. And as customary, the call will be governed by that language. So with that, I will leave the floor to Mr. Carlalberto Guglielminotti.

Thank you very much, Chiara, and good morning, ladies and gentlemen. Once again, really thank you for being with us today and for having attended the streaming of our AGM and Investor Day. As already mentioned by Chiara, I'm here today with Giuseppe Artizzu, our General Manager; and Mrs. Ilaria Scarinci, our Chief Financial Officer, to answer all questions you may have. And -- but first, let me just summarize for those who could not attend the whole meeting, very quickly the topics we have gone through today. In any case, please note that the transcript, presentation and the video will be available on the corporate website, as Chiara mentioned. Again, the agenda was articulated in 2 parts. The first part dedicated to you, our investors, to set out the company's growth strategy business, finishing with a presentation of our 2020 results, while the second part was about the management of the company and the voting results. We began with a general presentation of the company's technology management, then Giuseppe illustrated more in detail the energy storage business line, whereas I deep dive on the mobility one. Our premises were then presented by a video showing our industrial land. It was sort of a virtual tour. Then I continued to explain our technologies and then left the floor to Ilaria, who introduced the 2020 financial results. I followed by outlining the company's ESG principles and then with a presentation of the new horizons ahead with our new shareholder, TCC. Then the presentation we made today is essentially the full management presentation shown to all different bidders and potential investors in the context of the ENGIE divestment process, including TCC. So in other terms, we share with you today the almost identical information sets presented by the management to TCC. And obviously, without details on growth projections that in the context of the process were made by ENGIE, however, as I mentioned earlier, we are heavily working on a new business plan, which we started essentially immediately after the signing of the transaction between TCC and ENGIE. And as I anticipated, this new business plan will be called 10x master plan because as shareholder, change of this magnitude requires a set of new vision, new objectives and certainly new ambitions. Again, as I clarified earlier, it's still work in progress, but we are confident to finalize it and present it to the Board on or about the closing date and then obviously, [indiscernible] to the mark. We -- eventually, we moved into the new composition of the Board of Directors that we focus on our Investor Relations and on the remuneration compensation policy. Eventually, the meeting was closed by a summary of the auditor's reports and motion resolution. But anyway, I will now leave the floor to the first questions. Chiara, do you have any questions for us already?

Yes, we already have Mr. Jean-Michel Belanger, the Societe Generale.

Yes. Can you hear me?

Yes, perfectly, Michel.

Okay. Great. First, congratulations to the whole team for this nice achievements and this [indiscernible] prospects, first thing. I had 1 or 2 questions just to start with. Could we have a bit of more visibility of timetable in terms of signing other transactions between TCC and ENGIE?

Yes, certainly, Jean-Michel. Thank you for your question. I mean the only missing piece of the puzzle are necessary government approval. I mean, we clarified already to the market the closing of the transaction that since the very beginning was subject to necessary regulatory approvals of the antitrust level and at the government level. What I can say is that the only missing one is the Italian government clearance on Golden Power. And the process is ongoing. We actively participated in the process. We already had the hearing with the Italian government. So we're replying also in writing to many questions we received. Certainly, there is an attention of the Italian government and all the other actors involved in the process. You know that that's public that the new Golden Power rules in Europe entails -- entail a consultation also with member states, with the European Commission. So at the very beginning of June, we replied extensively to all questions we received in a very constructive and detailed way. And the former deadline according to the rules that are applicable should be mid-July, but we will not be surprised that we will be extremely happy to see an acceleration of the process in the coming days and potentially the last regulatory approval coming from the Italian government in the next few weeks, so slightly earlier than the deadline. And that's it.

Okay. Just another one. So you decided to go from 3 product lines to 2 product lines, i.e. energy storage and mobility. So what was the main reasons behind that?

Thank you, Jean-Michel. I mean simplification. Simplification because the level of complexity we manage more importantly with TCC will increase, will increase because, first of all, we have a geography to be added that we never tapped in our history. As Giuseppe mentioned during the AGM, we never address the Asian markets. And we never also made any kind of conclusion on the addressable market and their respective market shares. So adding the complexity, which is a good news, of the Asian markets, increasing complexity with different product lines is sustained. So we had to simplify. We had to simplify the organization. We had to simplify and to focus our resources in a most efficient way. And then we had also to the complexity of the implementation and the closing with Free2Move. So essentially, the idea has been driven by a simplification driver and effectiveness driver. And that's the reason why we will continue, obviously, to develop our industrial solution and Giga storage, but within a single global business line, which is the global business line storage led by Giuseppe, also in his capacity as General Manager. And in this context, the global business line will operate by geographies, okay, with clear people in charge for a single geography. And so while the global business line in mobility, which is represented by Free2Move solutions will operate obviously by brand because for any single brand, we would have a slightly different strategies. You will certainly have seen that also few Stellantis brands that were not included in the original FCA perimeter have already started selling our solutions, embedding charging packages or energy in the offer, even in the price of the car. We recently launched a campaign with Peugeot in Italy, and then we will continue to scale up. So this level of complexity was requiring an increased focus of our resources and that's the main rationale behind the simplification.

Okay. I can go on now to the next question. Next question comes from Fabrice Theveneau, Lyxor. And his question is, I will read it out loud for you. How can Noah find the resources to develop so many businesses at the same time?

Good question. Thank you, Fabrice. But I mean there's a matter of organizational methodologies in the end. Certainly, we have seen our headcount figures that were up to date at year-end. But as of today, we are more than -- just to give you a brief -- a real-time update. As of today, we have more than 165 people, okay? So obviously, from a focus or a glance review, you might think that we are understaffed, running 2 global business lines with so many products and so many businesses. But in reality, given the technological platform, essentially it's still the same. Then we develop new product but leveraging on the same technology, leveraging on the same platform. So essentially, it's just a matter of industrialization. Then we coupled this advantage, which is using the same technology platform, with an extremely focused and impeccable, if I may, methodology in terms of project management. You know we mentioned -- I mentioned in the ESG part of the AGM that we run -- and also during the beautiful tour, that we manage essentially the whole organization with the agile methodology. So I think GPS, there is no real product development or project management. Everything is a project. So a new product is a project, a new business is a project, a tender is a project. Also, the financial statement for Eladia, correct me if I'm wrong, is a project. Everything we're managing in project mode, everything with project leaders, with a high level of accountability and maximum 15 days deadlines to deliver products or deliverables, okay? So with this methodology, the number of people you need is extremely reduced compared to the classical hierarchical organizations that are the market standard in any company. And this is extremely powerful. Having said that, and I conclude, obviously, given the raise in the business we are seeing and we are experiencing, particularly in eMobility, but also in storage. Because on storage, we currently have -- correct me if I'm wrong, more than 10 projects in parallel right now, not even considering the big ones. So not even considering a Wave 1 and so on. So obviously, given the increase in the business in storage, given the increase in the business in eMobility, we are heavily accelerating our increase in the headcount, our hirings and so on. And that's just a natural evolution given the size of the prospect that we are managing. So -- the answer, in a nutshell, first of all, we manage within the agile methodology that requires absolutely less resources than the traditional organization, which is a good point. And -- but in parallel, we are increasing the number of people we manage.

Okay. We also had another question by Fabrice Theveneau. I will read it out loud for you. How quickly is Free2Move ramping up activity? And when will Free2Move become breakeven?