Obrascón Huarte Lain, S.A. (OHLA) Earnings Call Transcript & Summary

Good day, ladies and gentlemen. First of all, I am sorry for my eye. I've had a medical problem that is now being solved. My eye is slightly swollen. Please be welcome to the results presentation of OHLA corresponding to the year 2021. Unfortunately, today is not the best day to celebrate the good results of the company due to the situation in Ukraine and its impact at a human and economic level. Without further ado, let's begin this presentation by giving the floor to our President, who will give you a message on the current situation of the company and its future evolution.

Good day, ladies and gentlemen. I'd like to thank you for attending this results presentation corresponding to the year 2021. This event is done remotely due to the measures implemented since the outburst of the pandemic of COVID 2019 in March 2020. In this context, we'd like to resume good health for all of you and your families. I also apologize for not being able to be present in this event, held on the social headquarters of the company in Madrid. In this regard, well, the CEO and the rest of the management team of OHLA will be willing to help and answer any questions you may have. Next, I'll mention the company evolution highlights in 2021. I'll first focus on the milestones of the year and next, I'll refer to the growth pillars of the company. And I'll our finish by sharing our future loss expectations. Before I refer to the milestones in the year we just closed and before -- or in the face of the important achievements, I'd like to express my gratitude to the team of OHLA, the more than 22,000 employees, because their effort and commitment has allowed us to begin a new stage and to give a big boost to the main economic and contracting figures at OHLA in the year, with very strong advancement and the strengthening of its foundations for its future growth. I'd also like to mention our stakeholders who either have helped to achieve these important milestones. I'd also like to quickly refer to the second anniversary since my brother, Mauricio, and I joined the shareholding of this company that we'll celebrate in May. We're very proud to be reverend shareholders at OHLA. Our commitment with OHLA is firm and solid and long term. The year 2021 has been essential for this company and for its future from a strategic and operational perspective. 2021 has also marked the 110th anniversary of the company, and it has been the year of the birth of OHLA. On July 6, 2021, we announced the beginning of a new stage where we look to the future with optimism and hope. OHLA is now a renewed company, with a financial and balance sheet structure that improved after finishing on June 28, 2021, its refinancing and recapitalization operation. That was finished successfully. Thanks to this operation, that the CEO will mention in detail, we achieved to reinforce the equity of the company in EUR 205.2 million, the reduction of the bond debt in more than EUR 105 million and the extension in 4 years until 2026 of the bond's maturity. Operationally, we have reinforced the company's fundamentals, which has allowed us have profit again. We closed the year with an attributable profit of EUR 24.5 million. We have also been able to meet and exceed our targets. We have exceeded EUR 91 million in EBITDA, and we got contracts nearing EUR 3.7 billion, with a growth of 34%, exceeding our best expectations. Having a continuously growing portfolio means that we are currently a great global infrastructure group with a short-term portfolio of more than EUR 5.3 billion, thanks to the important contracts signed in the U.S.A., Latin America and Europe. We have also been able to boost our divestment policy to greatly reduce our indebtedness. After the divestment of our Old War Office, the Toledo Hospital and the concession company, Aguas de Navarra. After that, OHLA finishes the investment process in nonstrategic assets in the short term. Likewise, and was done before the year 2021, I'd like to quickly refer to the recent announcement of the company on the reduction in nearly EUR 100 million of the company leverage. The CEO will refer to this in more detail in his presentation and all the achievements that we have had in the last 12 months are shown in a great 2021 year, setting the foundation for our future growth, thanks to the strategy deployed in our 3 geographical areas. In all of them, we work to promote and boost progress developing avant-garde infrastructures that will improve the lives of millions of people. In the U.S.A., we have been present for more than 15 years, and we have achieved important awards and recognitions. We have been nominated Contractor of Year in California by the publication, ENR. The OHLA footprint in this country is not only in the improvements in the New York underground, but also in California, Illinois or Florida where we carried out such relevant projects such as the South Corridor Rapid Transit or Destination Sport Miami, one of the biggest covered sports halls in North America. In Latin America, we have been working for more than 40 years, and we have participated in iconic works, helping to promote the growth and progress of the region. We have opened MUNA, the largest Peruvian museum, and one of the most important ones in Latin America. We have boosted our concessions in Chile with the award of 4 new hospitals in the region of BiobÃo, increasing therefore, our vast experience of more than 9 decades building health infrastructures. Participated in the construction of the central mounting range cross, the largest road infrastructure in Colombia. And we keep working firmly on the markets of Panama, Mexico, where we aim to remain in Europe, our third geography, where we work since the company was built in 1911. We were to develop resilient infrastructures in line with our commitment with renewable energies. We have been awarding new PV projects in Spain. Are in 2 new contracts in Europe, America and Asia, with a total installed power of more than 1,000 megawatts. In Spain, we're proud of contributing to modernizing the urban infrastructures with Canalejas, an urban sustainable development, promoting a city model meeting the 2030 agenda targets. We have promoted public private cooperation projects in Ireland and contributed to modernize the railway network in the Czech Republic, Sweden and Norway. OHLA is and will be one of the main players at a global level, thanks to a business model based on the 3 largest pillars. First, transparency, ethics and good governance as driving forces of our growth; secondly, the innovation and utilization of all our processes, having therefore more durable infrastructures; and third, the clear belief in a sustainable business management, responsible management and social progress in all the communities where we operate, client diversity and social inclusion policies. This business model allows us to set the basis of our future growth expectations. There's no doubt that the pandemic has accelerated economic and social transformation globally. We are leading to a paradigm shift, leading us towards a model where we need to promote a detailed and structural transformation process to reach a sustainable development, economically, financially, socially, territorially and environmentally. After a serious crisis, the sector has proven to be very resilient. However, the challenges ahead of us are very important. Among those, we can mention innovation and digitization as value are these essential elements for the sector and its competitiveness. Using elements and process, including circularity and a more efficient usage of resources, attraction and loyalty of talent and the final boost to public and private collaboration formulas. Infrastructures are restructuring levers of growth in any country. Therefore, they will have a relevant role, a transforming role as well to meet the needs of citizens. Today, we demand infrastructures that meet our needs and mainly more sustainable for detail and ecological transition. And to achieve that, we have powerful tools such as the next-generation funds with a total global award of EUR 750 billion and the U.S.A. infrastructure plan with $1.2 billion, including $550 billion in civil works, including funds for roads, bridges, airports and railway systems. In this framework, OHLA will focus its growth in promoting its construction portfolio with future contracts in the U.S.A. and Europe. Also to reinforce its concession portfolio, bidding for new projects in Latin America and looking for opportunities in the U.S.A. and Europe. Strengthening the growth of the servicing division such in technology and other service of people as one of our differential values. Also advancing in the industrial activity, focusing on renewable energies as a builder and developer. To that, we'll add new business lines linked to smart infrastructures and promoting our know-how in development assessing new urban sustainable projects. All that will be reflected in the main economic parameters of the company in the year 2022, the year on which we'll work to keep the sustained growth line of 2021. And we'll do so with the support of our main assets of more than 22,000 employees. I thank them once again for everything we have achieved in 2021 and for the new success we expect to have in 2022. Thanks to their work and the support of our stakeholders, this company will keep growing and progressing in all the communities where we're present because at OHLA, we're innovative, we are resilient, we're sustainable and we are talented. And mainly, we are progress enablers. We enable progress with avant-garde infrastructures. And next, I'll give the floor to the CEO, who will give you the details of the company results in the year 2021. Thank you so much for your attention, everyone.

Thank you, dear President. Today, here with me are, Mr. Tomás Ruiz, General Corporate Director; and Mr. Jose MarÃa Sagardoy, General Economic and Financial Director. Before I give you the details of the year results, I have said it has been a very positive and transforming year for the company and need to convey our desire that you're all doing well, and I'd like to thank your growing interest in the OHLA company. I'd also like to use these words to share my congratulations with the OHLA team, who are the real driving force of this company. Their effort allows us to be here presenting these results. That means our return to profit. Thanks to their commitment, we have been able to initiate this new growth stage. And no doubt, thanks to the more than 22,000 people in this company, we're going to build the OHLA future with the best guarantees for employees, shareholders and for all of our stakeholders. Likewise, if you allow me, I'd like to quickly refer to the global transformation moment we're experiencing after more than 2 years in this pandemic. The infrastructure sector is facing important challenges, boosted by a new social and economic context. And for us, these challenges mean new opportunities that we will avail after growing a new framework where the star is detail and environmental transition. After this brief introduction, I'd quickly like to mention the topics I'll deal with in this presentation. First of all, I'll refer to the company achievements in the year 2021. Afterwards, I'll focus on the restructuring operation. Next, I'll deal with the 2021 results. And I'll present the evolution of the company's liquidity and our firm belief in reducing debt. And I'll finish by referring to the forecast for 2022. As I mentioned at the beginning, OHLA has finished the year 2021 with very positive results. In this way, we returned profits after 5 years of losses, and we have exceeded our forecast regarding the main economic parameters of the company. And we have achieved 2021, which was a very significant year for OHLA. The year of our 110th anniversary and the launch of our new corporate image and brand. It's been no doubt a year of great transformation that will set the beginning of a new stage. Thanks to the great work done in the last 12 months, we have achieved a great performance in our P&L account. EBITDA has reached EUR 91.2 million, 31 -- 35.1% more than in 2020 is the best result since 2016. We have achieved a record in contracts in the last 5 years, with nearly EUR 3.7 billion in awards. Our total portfolio is therefore at EUR 5.8 billion, with important projects in our reference geographies. We have finished successfully the refinancing and capitalization operation, and OHLA now has a reinforced balance structure. We have promoted our liquidity until reaching a total position of EUR 841.4 million, favored by a cash flow generation of more than EUR 200 million. Therefore, confirming the improvement in the business figures and its margins. We have completed our asset rotation policy in the short term. We've completed divestments such as in the hospital of Toledo, Aguas de Navarra and the Old War Office, and we focused on reducing debt finishing the year at EUR 523.5 million, and we'll keep doing so in 2022 until we are below EUR 400 million. All that allows us to set the foundations for our growth -- for our future growth. Whilst mentioned the best milestones in the year, I'd like to briefly explain the refinancing and the capitalization operation of the company that finished in June 2021. And that meant the reinforcement of the equity in EUR 205.2 million, thanks to the success of the capital increase with rights in the maximum range and the decrease of the bond balance, the reduction of leveraging in EUR 105.6 million and extension in 4 years of the debt maturities. The new bond will mature in March 2025, 50%, and March 2026 for the remaining 50%. All this has allowed OHLA to have a reinforced and solid balance sheet structure to face its business plan and its future growth. Next, our focus on the group results in the last 12 months and the target meeting level. As the President mentioned in his speech, the company has succeeded greatly from its full 2021. Likewise, regarding the main figures, sales were at EUR 2.7 million. As foreseen, EBITDA confirms profitability operationally since the last quarter 2020, and in the year 2021 was close to EUR 91.2 million versus the EUR 80 million foreseen at the beginning of the year. Total contracts whose closing estimation for 2021 was more than EUR 3 billion was nearly EUR 3.7 billion, a relevant figure, mainly taking into account the last 2 pandemic years. These contracts guarantee the improvement of production in the future quarters and reinforces the targets to increase the turnover volumes of the company. And we have added a new concession to our portfolio with award of the Biobio hospital network in Chile. The main OHLA indicators for the year 2021 are completed with the attributable net result placed at EUR 24.5 million after losses of EUR 151.1 million in 2020. Likewise, the company returns to positive results, which is something that it did not achieve since 2015. Regarding the evolution of the different business divisions. Construction has reached a turnover of EUR 2.23 billion and EBITDA of EUR 100.5 million, that is a 4.5% sales profitability higher than the one achieved in 2020, consolidating, therefore, the improvement trend that began in 2018. Regarding services, our sales grew by 20.4%, up to EUR 365 million -- EUR 361.5 million. We generated an EBITDA of nearly EUR 15.8 million, equivalent to 4.4% of sales. In Industrial, we finished the year 2021 with sales of EUR 165.5 million, similar to 2020. The future evolution of this business unit entails strengthening our belief in renewable energies. Therefore, from this division, we have created the subsidiary, OHLA Energy. As one of the pillars of the company, I must highlight that it has a portfolio of EUR 5.8 billion diversified per geography, types and projects. In this line, contracts have experienced a great performance throughout the year, being near EUR 3.7 billion. Among the main contracts achieved, we have the following. In the U.S.A., the improvement of the highway, I-5, in Los Angeles County, which is the biggest awarded contract since 2017 for an amount of EUR 321 million. In Latin America, we have contracted works in Colombia, Chile, Mexico and Peru in 2021. In Peru, we're awarded designing and construction projects for river defenses for an amount of more than EUR 235 million. In Europe, I'd like to mention our belief in sustainable construction. An example of those is award of an office building within the Campus Méndez Ãlvaro project for amount of EUR 86.5 million, and it will be the biggest office complex built in Madrid within M-30 Ring Road. In this building, we'll use advanced sustainability and efficiency criteria to achieve the LEED Platinum certification. OHLA has more than 60 projects with sustainable certificate, which reinforces our belief in the secular construction. On the following slide, you may see the growth trend of EBITDA since 2018. Very briefly, I mentioned the deficit projects, the loss-making projects. And I'm happy to say that it's the last time we refer to those because they are now part of the past. Therefore, since 2018, no losses have been incurred. They are just cash outflows pending of around EUR 13 million that will happen over the next few years. I'll focus next in the balance sheet of the company that will led to deal with liquidity, asset sale and the evolution of debt, highlighting our firm belief to reduce -- leveraging OHLA. On this slide, you may see the positive evolution of liquidity of the company. OHLA has finished 2021 with a total position and liquidity with recourse of EUR 841.4 million, a figure that includes an organic cash flow generation of the activity of EUR 201 million, much higher than the cash flow generation achieved by the business in former years. This liquidity position includes [ EUR 135.6 million ] or the recovery of Cemonasa credit after the agreement reached with the Committee of Madrid in December 2021. Excluding that amount, the liquidity with recourse achieved EUR 705.8 million. Therefore, it's important to remember that this year within the framework of our divestment policy in the short term, the sales of the OHLA Group participation was completed in the Toledo Hospital, Aguas de Navarra Concession Company and Old War Office project. And after in October, we announced the signature of the agreement of the sale of our share in the hospital center at the University of Montreal, subject to substantive conditions. Now regarding debt, OHLA has finished the year 2021, reducing debt more than 30%, placing it at EUR 523.5 million due to liquidity generation and the asset sale. This last figure compares very favorably with the EUR 749.1 million of debt at the closure of 2020. So ladies and gentlemen, our commitment with reducing leveraging is firm and decisive. And after 2021, we have announced a new decrease of debt after devoting the funds received by our subsidiary, Cemonasa, to the total amortization of the credit with ICO guarantee standing to EUR 54.5 million of principal as of 31st December. On this point, I should say that 1 year and 9 months after signature, we consolidated early and form the whole amount, which was EUR 140 million. We also launched a bond repurchase offer for an amount of EUR 43.2 million in principal with maturation is planned for the next March 9. Both operations allow us to significantly decrease our gross debt structure in nearly EUR 100 million in comparison to the 2021 figures. Therefore, we conclude that throughout the year 2021 and over the first months in 2022, we'll have reduced debt at around EUR 275 million. And throughout 2022, we'll keep reducing it until placing it under EUR 400 million, with the amounts coming from divestments, pending divestments such as I mentioned at the beginning of my presentation. Ladies and gentlemen, after more than 3 years of hard work and sacrifice, we've done important changes operationally, financially and strategically. And where we have firmly believed in budget and financial discipline, this company begins a new cycle after finishing a great year 2021, and we do it, with a new reference shareholders, having had the best EBITDA since 2016, returning to profit after 5 years of losses and reaching a record in contract, and with a portfolio of more than EUR 5.8 billion, with a strengthened balance sheet structure and a liquidity of EUR 842.3 million and indebtedness around EUR 400 million. This great transformation and renewal process has been reflected in this top trade evolution of the company. The shares have been revalued in more than 65% in last year, and bonds have advanced it by 11%, and they are now close to our level. We're prepared to build the future of OHLA and do it with the best guarantees. And in this context, we work firmly to achieve sustained growth with a firm target to create value and profitability in the long term for our shareholders, investors and all other stakeholders. In this growth, sustainability is a cross sectional axis. As reflected in our new sustainability plan and policy 2022, 2024, those strategic priorities are: the belief in a sustainable business through services and infrastructure, promoting the economic growth and social welfare with responsible management that is with a firm commitment with ethics, transparency and good governance. And looking for social progress, we'll promote economic development and cohesion in the communities where we are present. We are now in the final part of my presentation. I'll quickly refer to the targets for 2022. Our forecast is to reach sales above EUR 3 billion and EBITDA higher than EUR 110 million and contracts above EUR 3.5 billion as well as the awarding of 2 new concession projects and a continued and ongoing reduction of indebtedness. Ladies and gentlemen, we are facing a new cycle for OHLA, a new cycle aiming to reinforce growth and the production of the company. There are tailwinds in the sector, in the infrastructure sector, thanks to the important funds that will promote projects in Europe, the U.S.A. and Latin America, and that will be useful to build a better world post pandemic. At OHLA, we are ready to face these challenges. And we'll do so by contributing to progress with sustainable infrastructures, with the support of our main pillars. Our track record and experience, we have a history more than 110 years. Also our global footprint, we have a global diversified portfolio with more than EUR 5.8 billion in the regions where we are present. Our talent we export, thanks to our employees' reference engineering to the markets where we're present. Also our belief in need for transformation and innovation to build resilient and avant-garde infrastructures. And all that will be done by applying the best corporate management practices through ethical, responsible and solid management of the business, aligned with the good governance recommendations. And of course, with the support of our employees and the trust of all of our stakeholders, with whom we expect to build a great future for this company. Thank you so much for your attention, and we'll now begin the Q&A session.

Good afternoon, everyone. Thank you for the time and the interest devoted to OHLA, both to the people connected today and to people who connect in the next few days to watch the video. My name is Pedro Arellano, Investor Relations Director. And now I'm going to mention the questions received on the webcast and the e-mail, both my email and the Investor Relations' e-mail address. Any pending question that will not be mentioned today will be answered by the Investor Relations Department in the next few days or as soon as possible, if we do not have the time today. So without further ado, I'll go to the questions we have received. So the first one, as it can be otherwise is the following: Does OHLA have an exposure to Ukraine or Russia?

It's an easy answer. Fortunately, no.

Thank you. There are several countries regarding the cash flow consumption. How much has it been consumed in total over the year in comparison to the announced consumption for 9 months of EUR 201 million. Jose MarÃa?

Sure, let me just get the figures. So regarding the cash flow, consumption has been reduced in last quarter from those EUR 201 million to EUR 66 million. That was the figure at the end of the year. As we mentioned when we published the third quarter results, the evolution of last quarter shows an important recovery in the cash flow. But that consumption includes the EUR 201 million, that do improve the figure in former years and also include the financial, tax side, structure costs and the loss-making projects that as we mentioned are a thing of the past and much lower than former years. In fact, the company went from a work cash generation of EUR 103 million to EUR 201 million.

There's also a question about the recovery of Cemonasa. There was a reclassification of EUR 135 million, and the relevant fund was announced in the market with EUR 162 million being recovered. Could you please explain that gap?

Well, it's an accounting matter, purely accounting matter. The Cemonasa money was received in December by the concession of OHLA. Since the concession was under bankruptcy proceedings, the accounting rule doesn't allow us to consolidate the income for the concession. But since the recovery and the return of certain debts of the concession coming to the construction company, they were reclassified as EFDs -- or IFDs as noncurrent financial assets, and EFDs. And that was done for that amount mentioned. I'll add to the answer, the difference to get to those EUR 161 million, will have an accounting impact in 2022. Those EUR 30-something million gap will be ordinary credits in 2022. Regarding the cash flow effect, it's important to differentiate that this is regarding the accounting. But here, all the impact is reflecting January 2022. Therefore, we confirm that we have recovered the EUR 162 million, because somebody is asking whether we've recovered less. Now in 2022, we recovered the figure announced. In fact, the tender offer out right now has been done with those EUR 162 million. We should add the EUR 18 million recovered in 2021 due to the bank guarantee recovered indeed for the 9 months.

I have another question. Is there anything still to cover from the 20 -- from divestments in 2022, is there anything that OHLA would like to think or that is trying to think?

I can answer that. In 2022, we have 2 asset rotation operations pending. One asset has already been sold, but some recoveries are being deferred, which is the Old World Office. And the other one is the Montreal Hospital known as the CHUM. The total amount of these operations for 2022 will be a cash flow inflow of EUR 88 million, regarding the assets pending to recover. And regarding the intention to sell other assets, I could say that with these sales and in particular, once the CHUM sale is finalized, which is subject to substantive conditions and that we hope will be materialized throughout the year, we'll have finished the asset rotation commitment we have.

Thank you, Tomas. We have a question regarding that focus on Canalejas, and they're asking whether we can give any visibility of how the asset is evolving. And whether we plan in the future, some corporate operation with Canalejas?

I can answer that, if you wish. So the asset is evolving very well. They helped our sector. Obviously, it has suffered due to the pandemic, but as the pandemic figures go down go, auto reservations go up and this is one of the best resorts in Spain. Things are going very well. And this year, we'll open the shopping mall, and we'll also expect it to grow very well. So far, there are no divestments planned. It's an asset that needs to mature and that will gain quite a bit of value. As the CEO was saying, I could add that in order to highlight the value and get the value of these divestment, we need it to mature. And we need to sell this asset to the capital gain. The pandemic led to the delay in the opening of the hotel and the shopping mall as well. But we hope to have improvements in 2020 through to 2024.

There's article in The Economist a few years ago, saying that OHLA was starting to reduce our bonds of debt under EUR 350 million. This is true? Or are you starting to keep reducing the amount of bonds?

Well, we have already mentioned that as of February or March this year we'll have reduced by EUR 100 million additional the amount of debt and we'll only have financial months, which will be below EUR 425 million. And after divestments mentioned by Tamas earlier, we'll be with a figure close to the EUR 350 million by the end of the year.

Just to prioritize the questions. So I guess financially and regarding bonds, I could ask the following question, which are the -- or what's your expectations to generate cash flow from 2022 onwards, including 2022?

Well, this year, we'll have been close to breakeven. There was cash flow consumption of EUR 66 million, but that was a part in the cash flow consumed to finalize those legacy projects around EUR 30-something million. So we are very close to breakeven and next year, we should get over the breakeven.

So regarding the portfolio questions, some investors split them in 2 types of project. They're asking about the Biobio concession hospital project in Biobio Chile, whether they're are included in the short-term contract figures announced for 2021?

Yes, they are included. But they're included just for the construction. Of course, just the construction contract, but not on the income throughout the life cycle of the concession. It's just a short-term portfolio.

They're also referring to another project, Purple Line, is that included in the amount of affected because there was an article relating that at the end of last year saying that OHLA was the preferred bidder announced by the client?

Maybe there was an error there. Well, this company never ask to announce its portfolio until we have formally signed them. And even though we are preferred bidders and we're in the final stage, and we do hope to sign the contract by the end of April, we're in the closing process of the contract. And we have not yet included the portfolio corresponding to closure in 2021.

Regarding financial questions. We just got a question referring to whether you could explain the impact regarding net profit comparing 9 months and the end of the year to understand what is happening. Margins have been good mainly in construction, but could you please explain the impact for the net profit to be lower than the 9 months?

Well, I think there have been 3 main impacts that led to the net profit of EUR 24.5 million versus the Europe announced in the 9 months. We acknowledged an attrition in the Canalejas investment of EUR 14.5 million, and that attrition or impairment is mainly due to the following. We have kept investing money in Canalejas, and then we need to assess the value of the project. And due to delays, we have not been able to capitalize money invested, and we needed to do that attrition. That is EUR 14.5 million. So in 2021, we kept Pacadar after the agreement reached with Grupo Villar Mir. After the integration of Pacadar will generate goodwill. So the goodwill contribution increases, and that contribution happened in the last part of the year and is about EUR 7 million, it's actually EUR 6.9 million that were not recognized until that date, because the goodwill allocation have not yet been recognized. And then there's an equivalence item due to some of the investments we have in some concessions. And just to add to that, regarding Canalejas has the biggest cost in investments that we need to take consideration are due to delay in opening the shopping area due to the pandemic only.

We have another question mentioning liquidity. I'm referring to whether in the EUR 162 million of similar asset recoveries, you are including the net cash flow figures with recourse or without recourse. I think it was answered before the reclassification. Only a part of that wasn't answered, EFD, but the full amount was recovered in 2022. And then we have another question regarding the guidance, our last slide, how sure can we give and can we be regarding the fact that OHLA will generate the EUR 110 million EBITDA in contracts over EUR 3.5 billion?

Well, no one is sure. We don't have a crystal ball to predict the future. But we can look at the track record. Our leasing company is managed by the new team, we have -- we usually complied with the guidance and the estimates given to the market regarding contracts. I have already mentioned in my speech that we are at a sweet point regarding infrastructure investment in the 3 countries and the 3 continents where we are, Europe, North America and Latin America. In fact, we have gathered works in our portfolio with margins according to what was announced, and that goes into production, and that really helps for the EBITDA generation margin to keep gradually improving.

Thank you. We have another question regarding the next debt reductions, about the format and when that will be done?

That will be announced appropriately in due time regarding the next divestments and getting the new funds, as we have mentioned.

And we have another question, and I think is the last one. How much equity do you want to invest in concessions in the next few years? And whether the concession strategy is still the same?

Well, the strategy is still the same. It has not changed. The global amount will depend on the concessions we get aboard. But I'd like to remember or to remind you that we still are in this company, we do not want to mobilize more than 15% or 20% of the equity required by each concession, on which we decide to enter.

Well, that was the end of the Q&A session. If you have any further questions or any questions that has not been answered because was not received, although you may have in the next few days from the Investor Relations, we'll be happy to help the questions or doubts you may have at any point in time. And thanks so much again for connecting today and in the next few days. And thank you for your interest in OHLA. Thank you, and you have the floor.

Well, we just need to close the presentation. We'll be still willing to help, as Pedro was saying, through the usual channels of the company. So thank you very much, everyone, and we hope you'll all be well. Thank you. [Statements in English on this transcript were spoken by an interpreter present on the live call.]