Acea Stock

Good evening. This is the Chorus Call operator, welcome to the presentation of the first year half '26 of ACEA. [Operator Instructions]

I now would like to leave the floor to Mr. Dario Michi, Head of Investor Relations at ACEA.

Good afternoon, welcome to the first year half '26 results presentation of the ACEA Group. Fabrizio Palermo, CEO and General Manager; Pier Francesco Ragni, Co-General Manager; and Valentina Bracaglia, CFO, will illustrate in detail the financial highlights of the first year half.

I now leave the floor to the CEO and General Manager, Fabrizio Palermo.

Good afternoon. Let's begin today's presentation with an overview of the regulatory and market environment. As for the regulatory front, we have witnessed overall positive developments, particularly in the Water segment. The MTI-4 tariff approval process by local authorities has been completed, while ARERA is nearly completing the approval process across all group operations. As for the electricity networks, in June 2026, the provisional regulatory tariff was published following the publication of the final 2024 tariff in April, both fully in line with our expectations. In the Environment business, similar to the Water business, tariff updates for the 2026 and 2029 period are currently underway.

Turning to the commodity market. In the first half of 2026, electricity and gas prices posted increases of 6% and 2% respectively compared to the same period in 2025. Consumer prices reported an average increase of 2.2% year-on-year. Finally, as per interest rates, as you can see on the slide deck, in H1 2026, the six-month Euribor and the eight-year mid-swap stood at 2.4% and 2.9%, respectively, both reflecting a year-on-year increase.

Moving to the next slide. So here you see the business performance improving, driven by strategic investments and by operational improvement. As for Water, we further strengthened our market leadership through projects wins both in Italy and internationally. In the Electricity business, the sale of ACEA Energia was successfully completed in line with the group's strategic objectives. We have also accelerated our growth trajectory through the acquisition of Aquanexa, a leading service provider in the water sector. We have strengthened our presence in the Water segment with additional ancillary services that are going to be strategic going forward.

As for people, ACEA entered the top 20 ranking employers 2026 in Italy, underscoring our commitment to human capital ever since the beginning of the business plan. Our balance sheet was further bolstered by the successful execution of Italy's first public Blue Bond issuance. Fitch confirmed the BBB+ rating with a stable outlook and raised our FFO net debt ratio from 5.2 to 5.5x, recognizing the group's enhanced financial flexibility and credit profile resilience. Then we set up the ACEA Foundation, that was then recognized as an historical brand of national interest, further enhancing the group's identity and heritage. Overall, these achievements underscore ACEA's ability to grow in a sustainable way while delivering long-term value for our community, stakeholders, and shareholders.

As for the next slide, here you see the H1 2026 financial highlights. Pro forma organic EBITDA grew by 4% compared to the first year half 2025, driven almost entirely by regulated businesses, which account for approximately 95% of total EBITDA. Please remember that the EBITDA organic figure of H1 2025 was restated to exclude the technical and contractual quality bonuses in the water sector and to account for business scope changes related to the high voltage and PV assets sales as well as the deconsolidation of Publiacqua. We will come back to this point later on in the presentation.

Net profit stood at EUR 454 million, up significantly year-on-year, benefiting from the capital gain generated by the disposal of ACEA Energia. Organic net profit, excluding non-recurring items, rose by 16% to EUR 176 million, reflecting the strong operational momentum. CapEx, net of public grants, reached EUR 500 million in line with the H1 '25 and over 90% of them are allocated to regulated activities to support the infrastructure modernization and sustainable growth. Operating free cash flow is negative EUR 58 million. Our robust operational performance allows us to maintain a sound balance sheet structure with a pro forma net debt to EBITDA ratio of approximately 3.64x, fully consistent with our full-year 2026 guidance.

Moving on to Slide 6. Here, you see more details about the first year half performance. As already mentioned, pro forma organic EBITDA reached EUR 719 million, up 4%, well in line with our clear targets and driven by regulated operations. Reported net profit reached EUR 464 million. Taking out the one-offs and scope changes, organic growth was 16% and it mirrors the strong operational performance.

Capital expenditures remained flat year-on-year. The share dedicated to regulated activities account for 91% of the total. Net financial positions stood at approximately EUR 5.2 billion, up by EUR 217 million compared to end of 2025, primarily driven by seasonal working capital dynamics. Net debt to EBITDA ratio, as I already pointed out, stood at 3.64x, fully aligned with expectations and within our full-year guidance range. In the light of these results, we confirm our full-year 2026 guidance, namely EBITDA growth range between 3% and 5%, gross CapEx EUR 1.5 billion roughly, and net debt to EBITDA ratio range between 3.5 and 3.6x.

And I will now hand you over to our CFO, who will walk you through the detailed financial results. Valentina, the floor is to you.

Thank you very much. Let's now dive deeper into the EBITDA performance on Slide 7. In H1 2026, we generated a reported EBITDA of EUR 721 million, with regulated businesses accounting for approximately 95% of the total EBITDA. Specifically, Water accounts for 59%, Network and Public Lighting 30%, and Environment 6%. On the right hand of the slide, you can see the main one-offs and scope changes that in H1 2025 amounted to EUR 46 million. These were mainly related to the technical and contractual quality bonuses in Water for '22-'23 and the contributions from sold high voltage and PV assets as well as the deconsolidation of Publiacqua that occurred end 2025. As for H1 '26, the one-off items and scope changes totaled approximately EUR 2 million, reflecting the temporary plant downtime for revamping in the environmental business and the Aquanexa positive contribution following its closing in April.

Slide 8, net profit. In H1 2026, net profit reached EUR 454 million, boosted by the EUR 269 million capital gain realized after the disposal of ACEA Energia. Excluding non-recurring items and business scope variations, the recurring net profit grew double digits, namely 16%, reaching EUR 176 million, mirroring the underlying operating performance previously mentioned.

Similar to the EBITDA, also in this slide, you see on the right the detailed one-off components and scope variations. On top of what I've already stated, we have the capital gain deriving from the disposal of ACEA Energia, earnings from discontinued operations, and the impact of the IRAP surcharge introduced by the so-called Decree Bollette.

Let's now move on to capital expenditures on Slide #9. In the first year half, gross CapEx, before public grants, totaled EUR 663 million, flat compared to last year. This highlights our focus on regulated assets, on infrastructure reliability and long-term resilience. Particularly, Water accounts for the main destination of our capital deployed, with EUR 379 million accounting for 57% of the total, primarily targeted at network developments and wastewater treatment facilities.

Investments on Network and Public Lighting follow, amounted to EUR 209 million, focusing on grid modernization and IT and commercial systems. Then we go on investing in the Environment business with the construction of Line 4 at the San Vittore plant and the development of new PV projects, photovoltaic projects.

Let's now move on to cash flow. It confirms the strength of our balance sheet. We generated -- EBITDA amounted to EUR 721 million, leading to EUR 512 million in operating cash flow before CapEx versus the EUR 570 million in net CapEx. Operating free cash flow stood at minus EUR 58 million, marking an improvement compared to both Q1 '26 and to the first year half of '25. As a reminder, Q2 cash outflows included annual tax and dividend payments, while absorbing the net proceeds from the sale of ACEA Energia and the acquisition of Aquanexa.

Moving on to the financial structure on Slide 11. The first year half results confirm the sustainability of the group's long-term growth profile as well as a sound capital structure. As of June 30th, 2016, net financial debt stood at EUR 5.2 billion, up by EUR 217 million versus year-end at 2025. The pro forma net debt to EBITDA ratio was at 3.64x, fully consistent with our target guidance range of 3.5 to 3.6. Our debt structure remains a core strength of our group. Roughly 80% of our debt is fixed rate, average cost of debt at 2.16% and the average maturity of 3.8 years. This structure effectively shields us from interest rate volatility and offers strong cash flow visibility.

Rating agencies continue to confirm our strong investment-grade profile with a stable outlook, BBB+ from Fitch Ratings and Baa1 from Moody's. During the first year half, we further strengthened our liquidity and financing flexibility with the June credit facilities. In June, we successfully placed a EUR 500 million Blue Bond. And this accounts for the first Italian public issuance of a blue bond and the success is testified by the fact that the demand -- that it was oversubscribed by more than 3x, reaching an order book of EUR 2.6 billion.

Slide 12, we have a look at the Water business. Water remains the group's primary driver of growth with sound results with organic EBITDA posting a strong 8% year-on-year growth, largely driven by tariff indexation. At the same time, CapEx remained at a high EUR 379 million, broadly in line with H1 2025.

On Slide 13, we see that Networks and Public Lighting confirmed a solid growth path, backed by ongoing RAB expansion from capital deployed over recent years and efficiency gains. In H1 '26, EBITDA reached EUR 217 million with 2% organic growth year-on-year, while CapEx accelerated further, reaching EUR 209 million. As for the Environment business, we recorded stable operational results, really impacted by scheduled plant maintenance. Operating EBITDA was EUR 42 million, minus EUR 1 million year-over-year. We go on investing on this business. CapEx rose by 14% versus H1 '25, supporting facility upgrades, revamping and capacity expansion of our plants.

As for generation on slide 15, we reported particularly strong performance. Organic EBITDA is up 22%, driven by higher volumes, mainly from renewable energy sources, and leading to a 90% hydroelectric power generation increase. CapEx increased by 33%, and in H1 2026, CapEx reached EUR 15 million.

This is it as far as the presentation is concerned. We can now start the Q&A session.

[Operator Instructions] First question by Francesco Sala, Banca Akros.

Good afternoon, and thank you very much for taking my questions. I've got 3. Can you please tell us what do you expect for the Environment business in the second year half, considering that there have been some factors that impacted on the performance of H1 because of some shutdowns of plants or maintenance? So when such temporary problems are solved, what is going to happen?

Second question is about the guidance. Considering the H1 result and the contributions by Aquanexa and the environment bonuses that we can expect in H2. Can we be confident with the higher end of the range rather than midpoint? Then third question, the WACC. Can you give us an update about WACC for 2027?

Well, thank you. First of all, as far as the guidance is concerned, when I answer the question about the environment based on H1 '26 results, we are confident that we'll be reaching the high end of our guidance range. Thirdly, in H2, we won't have a linear development. The Environment business will accelerate after the maintenance of the plants of the previous year half. We expect a slowdown of generation that grew substantially, remarkably in the first year half of the year, that cannot be replicated in the second year half.

Moreover, in the second year half, the contribution to the results will come mainly from some operating costs that support the projects provided for in our business plan and are mainly concentrated in the second part of the year.

As for the WACC market, currently, the reduction of trigger of 30 basis points is active. With the volatility of the markets following the Gulf conflict, gradually play a key role in the panel because we expect the removal of Qatar from the panel. If this is going to be the case, then the opportunity to eliminate the trigger are certainly higher, but we have to wait and see.

Next question by Javier Suarez, Mediobanca.

I got 3 questions. The first is a more general question, more strategic in nature, rating agencies say that they feel confident with this net debt-to-EBITDA ratio almost near to 5x. What are the implications for you of this type of gearing that is substantially different than what you report now? Is it a matter of accelerating CapEx? Or is it a matter of having a more proactive M&A approach or paying higher dividends? So what is the company's view in a moment when it is clear that it is possible to absorb additional gearing? And then I would like to know when the company will decide to distribute an extraordinary dividend related to the capital gain from the disposals.

And the second question, adjusted EBITDA reported growth the adjusted net income grew above 10%. Can you please explain us the difference? Why is there this difference? Why the growth of the bottom line is so strong? Is it due to lower provisioning and lower taxation, lower minorities? Can you please help us understand what are the factors implied to try and understand what happens below the EBITDA that enables you to increase the net income markedly? And then third question follows up the answer you already gave. You reported a net income of EUR 170 million [ EUR 111 million ]. You are a highly regulated business, of course. And I know that generation performed very strongly.

But if we multiply EUR 170 million by 2, is this a good proxy of the performance of the second half? I would like to try and understand what do you see in the second half of that may limit the growth of the bottom line in the second year versus the first year?

Thank you. First of all, as for the review will lead us to 4.5x ratio providing us more flexibility and confirm that the rating agency as the regulated business Moody's still has to revisit. So as Moody's, again, we are still pending the review by Moody's. We focus on regulated businesses, as you say. So we will be focusing on growth in the regulated businesses, namely water and networks,fueling the growth grasp that may arise on the market besides growing organically. As for dividends last year, the capital gain enabled us to pay an extra dividend. Our dividend policy provides for on top of the ordinary divides decide what to do for '26.

The projects that we are definitely reducing and this is also our financial management has remained unchanged despite growing debt. And this has given us the once again [indiscernible] net profit -- net income, sorry. what we said about the EBITDA, considering that we are going towards the high end of the range financial charges. So at the high end of the guidance will slow down, and this can give you an idea of what we expect for the full year.

Next question Emanuele Oggioni,Kepler Cheuvreux.

I got a couple of questions. First, so much waited for business plan. We haven't seen official data yet. So I would like to know whether you confirm the idea of having a new business plan by the end of the year and when exactly? And second more strategic question or let's say, more general question related to the negotiations that you have with ARERA or the Italian government for a larger scale reform of the water segment so that problem in Italy, in particular in the South of Italy is addressed whose management do not have the money and the technical skill to make investments. So do you expect something may happen.

So again, you are constantly dialoguing with the regulators to eventually address these issues and adopt a large-scale reform that can drive your growth even further.

Good afternoon well, as for the business plan, as you can imagine, we have been working on the new business plan, and we'll go on doing so over the next few months. are still some pieces of information, especially as far as concessions networks are concerned and so on. But anyway, we haven't got a definitive date. We expect it will be towards the end of the year, early next year as soon as we have more visibility, we'll be announcing the official date for the presentation of the new business plan. Then your question about ARERA. Of course, ARERA new management team was recently appointed and they are certainly aware of what the situation is in the water segment the role that the Chairman -- the new Chairman of ARERA used to play.

So we have a very fruitful dialogue and we are asking to give the oargerasture players like ACE have a regulatory framework fostering the speed of CapEx. The water crisis is not only related to climate. But unfortunately, as we all know, Italy suffers from are much worse than that of other European countries. So the players must be to invest to offset the situation. Because this situation is creating problems already in the south of Italy, but such problems may soon affect the center and the north of Italy as well. There are some farming areas in the north of Italy, for instance, that have been suffering from drought for some time now. So this is a well-known problem.

We will go on working with the regulator and the local regional and central governments to find the best way to enable us to increase our investments. As Valentina said during the presentation, finding capital for regulated businesses is something definitely not easy. And our blue bond actually testifies that was very, very successful with this issuance. And of course, it is important also for Italy to develop the water segment further.

Next question by Roberto Letizia at Equita.

Just one question about the releveraging that Javier mentioned considering that your regulated business account for 95% of the total. So can you elaborate a bit more about the opportunities that exist or that may materialize if the dialogue with ARERA leads somewhere. So can you please give us some more visibility about forthcoming trends or other targets like ARERA that might provide a further boost to your growth. So opportunities, in other words, that may emerge and materialize in the market that may drive your growth even further.

As for M&As, as I always say, it's difficult to make forecast. The acquisition is meant to the [indiscernible] type of concern, it depends on the material on the market and there are not many [indiscernible] is there room for further investment there having more resources available enable us to speed up CapEx in these segments. As we repeat at every call whenever there are M&A opportunities that arise in our core businesses, we will certainly scout them. But then, of course, there must be always a willing buyer and a willing seller in such transactions.

Next question by the English conference by...

I have mainly 2 questions. First one is on capital gain on the disposal of ACEA Energia, which came in significantly higher than expected. Could you explain what drove this positive surprise? And my second question is on operating cash flow, which was as expected, impacted by seasonality on working capital. What are your projections or expectation for working capital in half 2?

Thank you very much. As for the cash flow, the early year absorption was mainly driven by 2 factors. One, the energy decree that changed the time for the payment of the contributions. And this had a substantial impact. And then in the first quarter of the year, we paid EUR 25 million extra profit on the sale of electric energy of absorption in the first part of the year. In line with the past years, we expect capital -- working capital absorption almost neutral towards the end of the year. And this is going to offset the initial absorption we reported in the initial part of the year.

And then as for the capital gains following the disposal of ACEA Energia, as you said, the capital gains were higher than we had estimated based on the value of our stake in it. But this is due to the fact that because of the historical results of ACEA Energia, ACEA Energia contributed to our consolidated results. So in the consolidated result, we witnessed higher capital gains than we had estimated.

[Operator Instructions] Ladies and gentlemen, there are no more questions. I'm sorry, we have Javier Suarez for a follow-up question. So Javier Suarez.

I just wanted to ask you if the RAB that you show on Page 12, 5.2 at December '25, can you break it down between the consolidated RAB and the equity consolidated company and then the amount of grants or subsidies. So you have this breakdown at the 30th of June? And the same applies to networks, 1 billion of RAB or how much the brands are at the end of June '26?

Well, as far as the RAB breakdown is concerned, subsidies amount to 20% for the whole group and includes all subsidies, both grants and -- as far as the water RAB is concerned, we are talking about EUR 5.2 billion here say that EUR 4.5 billion roughly is fully consolidated and the remaining part is the breakdown of the quarter plus the contribution of gas that is fully consolidated for networks, well, you see the overall figure, including the subsidies.

No more questions for the time being. The floor is open to you for your conclusions.

Thank you very much for attending. As customary, Investor Relations is at your disposal for further questions. Thank you very much.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

Good afternoon. This is the Chorus Call operator. Welcome to the presentation of the results of ACEA as of March 31, 2026. [Operator Instructions] Let me now give the floor to Mr. Dario Michi, Head of Investor Relations of ACEA, please.

Thank you. Good afternoon, and welcome to the presentation of the results of the first quarter of 2026 of the ACEA Group. Pier Francesco Ragni, Co-General Manager and Valentina Bracaglia, CFO and Planning and Control Manager, will give you a detailed illustration of our results.

Let me now give the word to Mr. Pier Francesco Ragni, the Co-General Manager.

Good afternoon, everyone. As usual, let me give you some information on the regulatory environment. In Water, the main tariff approvals under MTI-4 have been completed by local authorities, and ARERA is about to finish the whole process to approve all group operations by ACEA. As far as Grids are concerned, we expect the professional -- provisional reference tariff for 2026 for Grids to be published in May this month. The final 2024 reference tariff was published in March this year. As for commodities, in the first quarter of 2026, the energy prices and gas prices are decreasing versus the same quarter of 2025 by 6% and 14%, respectively.

The uptick is happening with prices that are increasing by an average of 1.7% in the quarter. As to interest rates in the first quarter of 2026, the 6-month Euribor rate is slightly decreasing whilst the 8-year MidSwap is up to 2.8%. As to the Group's results for Q1 2026, we confirm robust performance, operating performance. Organic pro-forma EBITDA is increasing by 4%. And this growth is virtually all driven by regulated businesses that now account for about 95% of the overall group EBITDA. We also point out that organic EBITDA in the first quarter of 2025 was adjusted to include the effect of the new perimeter, meaning the sale of High Voltage to Terna, photovoltaic and [indiscernible], which we will discuss in detail later on.

Organic net income has a double-digit growth, which is about plus 14%, and it also shows the improvement of operating performance. As to CapEx, CapEx net of grants and public contributions increased by about 18%. These investments are mainly going to support the regulated activities to support infrastructure sustainable long-term development. Operating free cash flow is about minus EUR 91 million. This allows us to keep a robust financial structure and net debt-to-EBITDA pro-forma ratio, which is stable at 3.3x, which is in line with the end of 2025.

As I was saying, the first quarter results are perfectly in line with the guidance we provided when we first published our data in 2025. As I already said, pro forma organic EBITDA is increasing 4% year-over-year up to EUR 344 million. This result is in line with the year-long objectives and is mainly driven by regulated businesses. CapEx net of grants is EUR 286 million, up 18% versus last year. Considering the CapEx with grants, the overall CapEx is up to EUR 302 million. Organic net income, as I said earlier, is up 14% versus the first quarter of 2025.

And once again, it benefits from the improvement of operating performance. Net debt is virtually stable and has shifted from about EUR 5 billion as of December 31, 2025 to EUR 5.1 billion as of March 31, 2026. On a pro forma basis, considering that [indiscernible] we will find details in note, the net financial position is about [indiscernible] as of March 31, 2026, about EUR 4.6 billion [indiscernible] 2025. And the debt-to-EBITDA ratio is unchanged and it stands at 3.3x. So in view of the results achieved in the first quarter, we confirm the 2026 guidance that we have already disclosed in March.

Let me now give the floor to our CFO, who will give you more details about the results that I just outlined. Valentina, over to you.

Let's now look in detail the EBITDA performance. [indiscernible] in the first quarter of 2026 was wholly driven by the organic development and growth of regulated businesses. Net of nonrecurring events and variations in the scope, the operating dynamics is robust and fully in line with our expectations, which confirms quality and visibility of growth in the group. In detail, in this quarter, recurring EBITDA is EUR 344 million, which shows an organic growth of EUR 14 million compared to the first quarter of the year before.

This increase is due to the [indiscernible] in Water and -- but also to the operating efficiencies we [indiscernible] in this quarter. On the right-hand side of the slide, you see the main one-off events and changes in scope, which in the first quarter of 2025 amounted to a total of EUR 10 million. This effect may be due to the elimination of the contribution of High Voltage and photovoltaic assets and has been first [indiscernible]. As to the first quarter of 2026, the one-off elements and changes in scope may be due in particular to the revamping some installations in the environment business.

Let's move on to Slide 7, which shows the performance of net profit. Net income is up EUR 10 million versus the recurring results in the first quarter of 2025 with an organic growth of 14%. This increase also shows the improvement of the operating performance that has already been reported under EBITDA. [indiscernible] in this slide, too, on the right-hand side of the picture shows one of the components of changes in scope as described before. Besides this, we should add the contribution of income from discontinued operations and with reference to the first quarter of the 2026 [indiscernible] surcharge of the [indiscernible] as per the [indiscernible]. Let's move on to CapEx.

In the first quarter, [indiscernible] regulated, which accounts for 89% of overall CapEx of [indiscernible] EUR 302 million, including EUR 60 million of public fund. This slide also shows the main initiatives which were started in the quarter for each individual division and the initiatives [indiscernible] In the following slide, we see cash flow. Cash flow confirms the robustness of the group's financial. Operating cash flow is negative by EUR 91 million, mainly due to the high level of CapEx and the dynamics of working capital, which reflects the current seasonal performance in the first quarter.

With reference to the financial structure on Slide 10, we can see that nearly 80% of our debt is at a fixed rate and the average -- overall average cost is 2.15% whereas the average duration is about 4 years. This allows to guarantee a significant protection versus the volatility of interest rates. The robustness of this [indiscernible] also confirmed by the fact that we kept our ratings and both Fitch and Moody's gave a stable outlook on our company. To support the investment plan, we also point out that a new EIB financing has been underwritten for an overall amount of EUR 190 million to finance the [indiscernible] CapEx.

Following slide, Water business [indiscernible] first quarter of 2026, a really robust growth with organic EBITDA up 6% year-over-year with results mainly driven by the tariff growth. Also, we continue our CapEx investment plan and CapEx net of grants is up 20% to support the development of infrastructure [indiscernible]. For Grids and Public Lighting, too, we see in the first quarter a very positive growth with an increase of organic EBITDA by 8%. And this increase is supported by the investment plan and by the operating efficiencies we have achieved. Net CapEx growth by 7%. It's now EUR 90 million, and these are designed to support and to enhance network infrastructure.

The environment business in the first quarter of 2026, there is a slight decrease of EBITDA by about EUR 3 million, but this is just a temporary phenomenon, which is mainly due to the increase of WT volumes because of the planned shutdown of some installation. We continue our CapEx investments in the business. CapEx is actually up 35% to support our plans to modernize revamp and enhance installation with a view of strengthening their operational efficiency and capacity over the medium to long term.

Slide 14 shows generation. Organic EBITDA is particularly significant as much as 21%. And this performance is driven from the strong recovery of hydro electricity generation, which is up 27% versus the first quarter of 2025, which is more than offsetting picture of energy prices, which is less favorable with an energy price dropping by 6%. [indiscernible] energy generated grew by 11% from 210 to 233 gigawatt hours. Also, we can see our CapEx plan in this business is up EUR 5 million versus the first quarter of 2025 to support the development and efficiency of our [indiscernible].

That's all on the presentation. We now open the Q&A session. Thank you.

[Operator Instructions] The first question is from Javier Suarez of Mediobanca.

My first question is on the update of your business plan is when do you think you will be in a position to update your business plan? And can you provide us with some general ideas on what you think should be the main basis for the business plan update and what kind of time frame you have in mind for this update?

I have a second question on the guidance for 2026. And I would like to try and understand whether you can help us understand what guidance you have in mind for the net income of 2026. Do you have any update about that? That would be extremely useful.

Also, I have a question on a possible update on the process to build the waste management plant in the city of Rome. I'm really interested to understand whether you have some timing in mind for that.

And finally, can you give us some update on your expectations on the future activities from 2027 onwards?

Thank you. Now as to our business plan, we, as a management team, are always looking, of course, at the economic and financial conditions. So we monitor them carefully to understand and monitor the business performance. But we're waiting for the new Board to become effective and to fully take office before we complete those plans together. So the average duration would be the same direction as the previous business plan, but the final details will have to be defined as soon as the new Board takes office.

As to our guidance, in general terms, we can confirm the guidance we have already disclosed for the 12 months. As to the perspective for the individual businesses for the rest of the year, we do expect that the improvement of results we have given guidance about will be driven by Water for Grids, we expect growth to be pretty dynamic. Much will depend on regulation and the -- whatever happens with the new regulation. The negative trend we had in the environment business at the beginning of the year is mainly due to some planned [indiscernible] some plants and so we expect that to disappear during the rest of the year. But overall, we should stay within the guidance we have already given for the rest of the year.

Now we know that the Aquanexa deal has been closed. And so starting from April, the Aquanexa results will be consolidated in our accounts. And the EBITDA of that company at the beginning of the year was about EUR 30 million. As to net income, we are not giving any guidance specific, but apart from the capital gain that we are posting in April after disposing of retail, we don't expect anything disruptive to happen in this.

Now as to the individual grid, as you know, right now, we are actually experiencing energy prices that are on the decrease. But of course, there will be a big impact from the conflict in the Middle East and what's going to happen in the rest of the year. It is important to realize that after losing AA rate in some standard, we expect that we will remove some countries from the spread cancellation panel. And so if that happens, if Iran is canceled in particular from the overall average calculation system that will have an impact on pretty much everything we do. As to the waste disposal plant, we are waiting for the finalization of the current dealings, and we expect something to be communicated to us in the next few weeks.

The next question will be asked by Francesco Sala of Banca Akros.

I have 3 questions. First is, can you give us some idea of the working capital performance on a full year basis apart from the seasonal impacts we had in Q1? The second question is about waste and in particular, about waste treatment. So what should we expect for the rest of the year considering that some installations are not working in Q1, but they should open again for the rest of the year? And third question is ACEA going to be involved in tenders on some regions, [indiscernible] in particular, that are actually starting to open up for the next.

Thank you. As to the working capital dynamics that we have included in our guidance and we expect for the end of the year, it's pretty neutral. So what we see, the portion we see at the beginning of the year was mainly due to the timing of [indiscernible], which was mainly concentrated in the last quarter of 2025 and to the payment of some fees, which were connected to the extra profits of 2022 and which were in the first quarter of this year. But we expect dynamics to be pretty neutral.

And as to the waste, as I said earlier, we expect a partial reabsorption of some of the shutdowns. So quite a few shutdowns that happened in the first quarter. Some will continue during the second quarter, too. But these are all planned maintenance shutdowns, and we are consuming them in the next few months. However, partially shutdowns will be completed between today and the end of the year. As to the hydroelectrical tenders, we have been following what the individual regions [indiscernible] carefully ourselves. We are in the process of evaluating individual tenders depending on their future, depending on the geographical location. And so we will evaluate that. We're actually already looking at that, too.

Next question is from Roberto Letizia of Equita.

I have a question on guidance again. Could you please give us an idea of the main elements right now that may take you to the high end of the guidance or even beyond that because of favorable market conditions, favorable pricing conditions or whatever. So what are the elements that might actually bring us over 5% over the current guidance? Then maybe you have some more information than we have on the concessions of electric distribution. And can you give us some update on Peschiera? This was expected for April, if I'm not mistaken, but there may be some new features there. And also, can you give us an update on M&A? This is still a really important topic. And you said that full integration may happen anytime soon. So do you think 2026 may still be a pretty active year in terms of possible M&A?

Thank you. As to the guidance, well, there are 2 key elements here. So the first would be water. And with the tariff approvals and the 2-year update of tariffs that are going to happen in the second half of the year, there will be some tariff components such as recovery in inflation that needs to be calculated. So at that time in the year, this will have an impact on our results and eventually [indiscernible] guidance. Another key element was the acquisition of Aquanexa. Aquanexa was included -- is actually included in the guidance. This happened in April. So it has no impact on Q1, but it's going to support that growth from now on.

For the rest, we expect generation to keep sustaining growth, but it's been quite sharp to begin with in Q1. As to the extension of the concessions on electrical distribution, there's nothing relevant, nothing particularly new there, but we are ready with our CapEx plan. Our CapEx plan is already in line with the ARERA target. We are actually talking to the ministries and all the other stakeholders, but we have no specific preference on any given timing or any kind of tariff update. So right now, we're following and monitoring the process carefully, but there's nothing particularly new.

As to your questions on M&A, M&As are by definition, hard to plan. And so after the asset rotation season, which was completed with the sale of ACEA e Eni Plenitude and buying from Plenitude their platform for services in the Water business. Well, after all that, right now, we are actually looking at possible new opportunities in the market. However, our main focus is always our fundamental core businesses, and we want to grow organically there. So we have all the CapEx plan we need to improve network efficiency and resilience. Then should any opportunities appear on the market that might help us accelerate our growth process, as usual, we will take them into account. As we speak, this is what we're doing now. It's premature to comment on any other things now.

As to Peschiera, we are at the final stages of the construction procedures. So we are going to start the economic offer and the blueprint designs, and we're going to start construction in the second half of 2027.

The next question will be asked by Emanuele Oggioni, Kepler Cheuvreux.

I have a question on tenders. Can you give us an update because ACEA was awarded in the last years, virtually all the tenders where it was involved also out of its historic geographical presence and locations. So what kind of major interest in tenders are going on now? Or is there any tender that has already been decided or nearly so? We all know there are several steps in the process. So this is the first question. Then I have another question, which is connected to water regulation again, but it's a more general question. So considering that the new ARERA Board has taken office and the Chairperson is actually very experienced in managing water and emergencies connected to water, we may suggest and we may consider they will be particularly sensitive to this.

Actually, the water network situation is pretty much of a disaster, whereas it's really, really efficient for electricity and gas. So we all know there are major problems in water losses in Italy, especially in the central and southern part of the country. So are you talking to the new Board to make sure there may be some structural long-term solutions that may actually push a new opening of investing capital or entering joint ventures or maybe partnering with non-listed companies, private companies so that industrial players like you may actually start working in those concessions that are really abandoned or lacking investments and that have a terrible situation. There are some places where there's as much as 45% of the losses. So can you have a role in improving that? Sorry, I cannot hear you anymore.

Yes, sorry. We did have a technical problem with the microphone. Can you hear me now? Okay. Good. Now as far as tenders are concerned, in the next few months, the [indiscernible] of tender is going to be decided. We are the only player in [indiscernible]. In particular, we are working with the Water Board of Campania, the Campania region. They have completed their due diligence and they approved to continue the tender. Another tender that's going on is [indiscernible]. In particular, we are in the competitive dialogue phase right now. And so before the summer, the actual tender is going to be launched in [indiscernible]. Further tenders we may expect during the year is the Messina tender in particular. We know this will be one of the opportunities, but more opportunities we'll actually get during '27, '28 and many concessions are going to expire in the next 2 years, too.

As to ARERA, right now, we have a very constructive dialogue with ARERA and we also have full connections with the new Board. So we all agree on the need to invest to improve the quality of the grid. And we see the possibility to discuss some methodological issues in order to fine-tune them and improve them. We expect that some mechanisms and the RAB evaluation parameters and some will be assessed on a priority basis. Actually, in the last 2 years, with some geographies, we already had some very interesting discussions with ARERA, and this put us in the right position to improve the grid as much as possible. So the next biennial update [indiscernible] Also, we discussed wider issues with ARERA governance and extending to other geographies and that is part of the future work we're going to have with them.

Well, may I have a follow-up question on water. Can you please give us an update on the litigation with Florence?

Yes. We know that on March 10, 2026, the Court of Florence said we need to sell our share in [indiscernible] to another company. And so far, the Court of [indiscernible] has frozen the actual implementation of the first agreed decision and a temporary decision. So the hearing to discuss this has been postponed to May 15. So all the economic impact of this transaction have already been accounted for in the 2025 financial statements and the guidance for 2026 does not include the [indiscernible] results in our 2026 results, we have not included the impact of [indiscernible] and started in 2027, it will be excluded from the scope.

So that's where we stand now. But it's not included in Q1 2026, and there's no grant -- Exactly. No, it's not included. There's no contribution to the economic performance, [indiscernible] or income. There was no contribution to the guidance. And when I say no contribution to the guidance, I was also referring to the fact that in the net financial position, we have not accounted for the possible sale of [indiscernible]. So there was no contribution to either EBITDA or net income. And in 2026, no contribution is posted for EBITDA or net income. And this is something we have excluded from our accounts or not even the disposal of the company. But if you dispose of the company, it's not necessarily going to happen in 2026 if it happens at all, right?

So if we will sell our stake, we will actually cash in the proceeds because that will happen at the same time. On the other hand, if [indiscernible] happens, we'll only cash in the sales proceeds of EUR 114 million if and when we sell our stake. So if we do sell our stake, we will be cashing that money in, but we're still waiting for the final decision from the court.

Next question from Davide Candela of Intesa Sanpaolo.

I only have one question on the disposal of ACEA Energia. The closing happens. So do you think there may be some capital gain you can derive from that? And as you did in the past with Terna, will that actually increase dividend, which is what happened in 2025?

Well, the sale of ACEA Energia includes a capital gain, which is certainly higher than that we have from High Voltage. It's about EUR 200 million on separate accounts and consolidated accounts, it will be even higher. As to dividends, the dividend policy we have today is a 4% increase over the ordinary dividend of 2025 without the extraordinary component. But of course, as we update the plan and approve the results of 2026, we will certainly review everything and see what we will decide at the time.

Next question in English from [ Ennis Kaya ] of ODDO.

Almost all of my questions have been already answered. Maybe a follow-up question on the Environment segment, just to understand, you say that contribution in Q2, you should have also partial shutdowns in Q2 and coming back by the end of the year. Is it what you said?

Thank you, [ Ennis ]. Yes, we confirm that the shutdowns will also have impact in the second quarter, but not the second half of the year. So as we continue throughout the year, we will actually conclude the planned shutdowns and we'll close the impact on P&L too. Thank you.

And maybe one question also on discontinued operation. The contribution in Q1, EUR 32 million. It came in well above expectation. Could you elaborate on the main drivers behind the stronger-than-expected performance? And also, should we expect any further contribution in Q2 for the 10 days prior to the closing of the transaction?

Yes. As to discontinued operations, the contribution to net income in Q1 was EUR 32 million, but that EUR 32 million also includes a purely accounting effect, which is due to the stoppage of amortization because discontinued operations are classified as finalized for sale. And so in our results, the amortization of these assets are neutralized. So we have net profit from the assets that's been disposed of, which is an [indiscernible], which is about EUR 16 million plus an accounting effect, which is due to amortization cost, which is another EUR 16 million. So the overall impact is EUR 32 million. If we compare that result to the results of the first quarter of 2025, that EUR 16 million of ACEA Energia compared to a result of EUR 19 million last year. And so last year, the stock of amortization didn't happen. So actually, the business is showing a slight decrease of EUR 3 million of net profit -- of net income year-over-year.

In Q2, we expect no impact because the asset has been disposed of in April. So we'll have the impact of the capital gain, but we won't have any impact on the economic performance.

[Operator Instructions] There are no further questions in the line.

Thank you very much for your attendance. As usual, the Investor Relations team will be happy to answer any possible future questions you may have. Thank you.

This is the Chorus Call operator. The conference is now over. You can disconnect your phones. Thank you.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

Ladies and gentlemen, good afternoon. This is the Chorus Call conference operator. Welcome. Thank you for joining the presentation of ACEA for the results of 2025. [Operator Instructions]

At this time, I would like to turn the conference over to the Head of Investor Relations of ACEA. Please, you have the floor, sir.

Ladies and gentlemen, good afternoon, and welcome to the presentation of the 2025 results of ACEA. Fabrizio Palermo, General Manager and CEO; Pier Francesco Ragni, Deputy General Manager; and Valentina Bracaglia, CFO, will illustrate the highlights and the main results of the group.

I'll give the floor to the CEO, who will make an introduction to the presentation.

Well, thank you very much, Dario, and good afternoon, ladies and gentlemen. I will start my presentation by expressing a high satisfaction for the results reached in 2025, which really represent an all-time high for the ACEA Group.

Let me give you the details. ACEA reached a pro forma EBITDA of EUR 1.420 billion, up 10% versus 2024 by outperforming in this manner, the industrial plan targets where we announced an average growth of EBITDA by 5% a year. Such result is at the upper end of our guidance range that was provided and which was plus 10% versus 2024.

Now I need to remind you that the guidance had already been reviewed upward in 2025 versus the initial target of plus 2%, 3%. As to the debt-EBITDA ratio, pro forma debt-EBITDA ratio, 2025 was closed with a ratio of 3.28 below the guidance, which was 3.4, 3.5x. As to CapEx, in 2025, we have closed the year with EUR 1.5 billion of CapEx, of which EUR 1.2 billion net of subsidies.

Now let me now move to the next slide, dividends. And we are going to propose the dividends to the next shareholder meeting. Now considering the strong results reached by the group in 2025 and considering the solid financial structure, the Board proposed -- the Board decided to propose a distribution of dividends equal to EUR 1.20 per share growth by 26% versus the 2024. Let me remind you the dividend policy of our plan envisages an average growth of dividends by 4%. Last year, we distributed a dividend of EUR 0.95 per share, growing by 8% versus 2023. The dividend of this year of EUR 1.2 per share includes a one-off of EUR 0.25 related to the all-time high results and also the capital gain due to the disposal of the high-voltage grid to Terna.

Now here, you see the results of the last 3 years. During this period, we have gone through a strong operational and organizational transformation. Now the path allowed us to strengthen the efficiency and competitiveness of our companies. And we have been able to establish our role of player with a focus on regulated infrastructure business. In these 3 years, we have a strong accelerated the CapEx plan and maintained, at the same time, a strong financial structure. The debt-to-EBITDA ratio at the end of 2025 was equal to 3.3x, which is strongly lower versus what the main rating agencies envisage.

By the rating agencies, we were recognized our performance. As a matter of fact, Moody's raised our creditworthiness from Baa2 to Baa1, whereas Fitch improved our outlook from negative to stable. The market, I have to say, also reward the results that we reached and the growth trajectory that we have gone. The total shareholder return has grown by 176% between 2022 and February 2026 when ACEA went above EUR 5.6 billion of market cap. This is a result which testifies also the trust of investors and the effectiveness of our strategy with the industrial plan launched 3 years ago.

Now in this next slide, we shall go through the performance achieved by the main businesses of our group, driven by major CapEx and on the other hand, driven also by the improvement of the operational dynamics of the group. In the water business, EBITDA EUR 820 million, up by 23% versus the of 2022. As to CapEx, we have accelerated strongly in this business. In 2025, CapEx amounted to EUR 891 million, up 46% versus 2022.

Now this momentum allowed us to launch a number of strategic operations to modernize the infrastructures. Such infrastructures will be up and running in the next few years, although the projects have already started. For instance, the Peschiera project, which is the biggest water operation, biggest water plant in Italy and in Europe as well. Now we won all of the water tenders launched with 870,000 inhabitants more versus 2022. And then the budget law of 2026 of Italy [ the ] possibility of the extension for 10 years of the duration of ATO2 Concession, [ thus ] giving us a better regulatory visibility to all of our business.

As for the electricity business or the grids and public lighting business, EBITDA EUR 449 million, up 27% versus 2022. CapEx growing here even more rapidly, reaching EUR 385 million, up 43%. We have then completed the strategic asset rotation [indiscernible] by disposing the grid of the high voltage of -- to Terna and ACEA Energia disposed and sold to Eni Plenitude such operations favor a more focalized business on regulated businesses.

As to the environment, EBITDA goes up to EUR 87 million, up [ EUR 37 million ] versus [ 2027 ], whereas CapEx reached EUR 116 million, up 152%. We started our works for the WTE of Santa Palomba. This is a WTE, which is going to be [indiscernible] the biggest of WTE with a forcing capacity of 600,000 tonnes a year. At the same time, we started works for the fourth line of the San Vittore and WTE, which will be up and running next year. As operational efficiency, we launched a number of projects in the field of robotics and automization of plants, which will give us results in the next few years.

We are the only water utility in the steering committee of the plan, thus being able to expand our presence abroad. We have been awarded the tender for a project aiming at planning water infrastructures in the capital of Congo Brazzaville. Moreover, in the water business again, the acquisition of Aquanexa, which is a platform of water services. Well, this acquisition will help us to manage in a more efficient manner, water resources and help us to further consolidate our competencies in this business.

Now let me now move to the next slide. Here, we are focusing our attention on the main drivers of our growth over the past 3 years. First of all, people. For the first time, we have been able to get among the top 20 employers in Italy -- this is a very important recognition, which I believe recognizes the commitment that we have taken to improve the well-being and the growth of our people. We then strengthened the programs devoted to talent and talent growth, and we signed an agreement with the Luiss Business School for Corporate Master and a talent program involving 84 colleagues.

We have then managed in a very structured manner the generational turnover for the period 2023-2025. The group then invested considerably on systems by accelerating digital innovation, robotics, also by the launch of a.Quantum, a company with which -- company that we reached an agreement with the Istituto Italiano di Tecnologia, Italian Technology Institute for the creation of a Joint Lab to robotics. And we have then experimented a number of user case with artificial intelligence with 12 different technology partners.

In the field of cybersecurity, we implemented a digital resilience plan, which aims at safeguarding and protecting our infrastructure, which are critical, and we are now aligned to the requirements of NIS 2 regulation, strengthening the digital resilience of the infrastructure for which we operate. As to processes, we set up an A.Evolution, a new structure devoted to the centralization and optimization of services, and we have defined a new energy transition plan of the group which guides our strategy towards a more sustainable model also from the energy point of view.

As to credit, we have introduced a new management process, which led to a considerable improvement with an increase of collections by 26% versus 2022. I believe another major step was the update or renewal of the brand identity through which we have redesigned the whole digital ecosystem as well to make it more modern, more recognizable and consistent with the transformation, which is now ongoing. I believe that such results over the past 3 years are not merely isolated initiatives, but they are the result of a structural change of the group which makes ACEA continue along this direction going forward. This is something that we are building on to allow ACEA to grow in the future.

I'll give the floor to the CFO, Valentina Bracaglia, who will give you the details of the results.

Thank you, Fabrizio, and good afternoon. Let's start from the regulatory and market context. Here, it is important to remind you that in the water business, ACEA was awarded bonuses for quality and contractual quality for EUR 36 million. And then the update of the WACC for 2026-2027 has seen a considerable stability and therefore, we are around 6.1%.

As to electricity distribution, there was no activation of the return on capital trigger for 2026. And therefore, the remuneration of invested capital remains stable at 5.6%. As to commodity prices, electricity and gas prices in 2025 went up by 6% and 8%, respectively, versus previous year, and it is well known that interest rates over the last quarter confirmed the trend recorded in the first 9 months of 2025 with a decrease of average rates versus 2024.

Now let me now move on to the highlights of our group of the results. So the group results are strongly growing in all economic indicators, thus confirming the soundness of our financial strategy and the effectiveness of our strategy. As the CEO said before, the approval of results for the first 9 months of 2025 in line with international accounting principles. The ACEA Energia perimeter were classified keeping into account discontinued operations. We then exposed the pro forma results, simulating the deconsolidation of discontinued operations and off talk about the net profit and operating cash flow.

Net profit, EUR 481 million, which is an all-time high, and it is up 49% versus the previous year. And this is also due to the capital gains achieved following the disposal of the high-voltage network to Terna. The net profit is also growing by 15% versus the previous year and this follows the dynamics reported at operational level. The operating cash -- free cash flow is positive EUR 206 million, thus allowing us to maintain a sound financial structure with an Net debt/EBITDA pro forma ratio equal to 3.28.

Next slide, we see the main indicators of the dynamics. And you can see all results are growing strongly. As to EBITDA, ACEA concluded the year with growth by -- with a growth of 8% versus the results of 2024 adjusted for one-offs and changes in the perimeter. CapEx net of public subsidies are equal to EUR 1.2 million, of which EUR 68 million related to activities, which are being disposed.

Net of discontinued operations of ACEA Energia investments or regulated CapEx represent 94% of the total. Net profit, which includes the contribution of discontinued operations goes up by 15% on a recurring basis and which reflects the very good operational performance. The net financial position is basically stable, and this allows us to maintain a debt-to-EBITDA ratio stable as well.

Let's now move on to the next slide where we can see the EBITDA. Now in 2025, gross operating margin recorded an organic growth by EUR 108 million versus 2024. The main drivers here are the tariff growth and the operating efficiencies in the water business. The contribution of grids and public lighting, which thanks to investments are growing and the increase of production, both because of the price dynamics and because also of higher volumes produced.

On the right, you see the main one-offs and change in EUR 38 million overall in 2024 relating to the recognition of previous tariffs referred to 2022-2023, which were recognized in 2024. As to 2025, the one-offs relate mainly to bonuses for technical and contractual quality that we mentioned at the beginning.

Now as to the recurring net profit, the growth equal to EUR 49 million is related to a higher operating performance and also thanks to the financial management, which is stable year-on-year. As to the EBITDA, you can see on the slide on the right, the one-offs which shows the most important one, which is the disposal of the high volt tension for EUR 100 million.

Now let's move to the next slide, the CapEx considering the contribution of ACEA Energia in the first part of the year. In 2025, we invested EUR 1.5 billion, up 6% versus 2024. such investments, 91% are referred to the regulated business, water, grids and environment. Net of the perimeter of ACEA Energia, that is the operations subject to disposal, the contribution to regulated business to total CapEx was equal to 94%.

Now here, you can see the main initiatives that were in the year, among which the widening of the water and sewage pipelines and the strengthening of the distribution network for electricity. Now here, you can see the cash flow, which is equal to EUR 19 million in 2025, which reflects the CapEx, the payment of dividends and taxes.

As to M&As, EUR 267 million that you see on the slide show among other components, also the cash in by Terna, the amount of money for the disposal of the high voltage network, which was equal to EUR 227 million, whereas the cash in of the contribution is expected in 2026. Here, you can see the financial structure, and you can see that the debt -- the average cost of debt in '25 was [ 2.7% ] versus 2.6% of the previous year.

The cost of debt is also affected partly by the reduction of variable rates connected to the Euribor, which is such that is around 20% of the total. Here, you can see the [ Acqua tania ] results. Let me tell you that the results of 2024 were recalculated because we had to take into account the reclassification of the [indiscernible] in 2025, EBITDA, recurring, EBITDA adjusted for bonuses has gone up by 8%, growing by EUR 58 million. Such dynamic is supported by tariff growth, CapEx results achieved by the consolidated companies and operational efficiency. Net of public subsidies, CapEx recorded a growth by EUR 25 million, up 4% year-on-year and related to investments made on Aquadex and water treatment plan and the maintenance of network net of the investment related to Aqueduct Fiora, the yearly growth is EUR 57 million. RAB at the end of '25 goes up to EUR 5.4 billion.

Let me now move to Slide 18, where you can see the grid and public lighting business. Now despite the reduction of WACC by 40 basis points in 2025 versus 2024 EBITDA -- recurring EBITDA rose by EUR 32 million to EUR 457 million. The main drivers are CapEx carried out and the update used to reevaluate RAB starting in 2025. CapEx net of public subsidies around EUR 312 million in 2025 is growing by 5% versus 2024. RAB is stable at EUR 3.1 billion versus 2024. And this is due to the disposal of the part of the high-voltage network.

Now let me now move to the environment business. And here, net of one-off EBITDA grows by 6% year-on-year. And this result is related to higher margins of the WTEs. CapEx in this area are growing by EUR 8 million year-on-year. And let me remind you that in 2024, CapEx included the effect of the WTE Terni revamping operations. you see the production business. The recurring EBITDA grows by EUR 12 million because of the more favorable energy scenario and the greater production coming from hydroelectric and photovoltaic plants.

The energy produced or generated goes up by 18%, thanks to hydroelectric and photovoltaic business. In 2025, CapEx were EUR 33 million, up EUR 8 million versus 2024.

Let me give the floor back to -- I do apologize.

As to 2026 guidance, EBITDA is envisaged to grow between 3% to 5% [indiscernible] the one-offs and the change in the perimeter that we talked about before and excluding the contribution of the high voltage grid and then disposed of in '25 and [ phvicantposed ] 2025 and then Publiacqua, which is now to be disposed.

As to 2026 EBITDA, we have not taken into account the contribution of ACEA Energia, which is to be disposed. We have included the contribution of Aquanexa considering the deal will be closed in the second part of the year. As to net debt-to-EBITDA ratio, the guidance is between 3.5 and 3.6x.

Thank you. The presentation is now over. We can now start the Q&A session.

[Operator Instructions] Now the first question by Francesco Sala, Banca Akros .

Congratulations for your results. First question about the 2026 guidance. I wonder whether it includes subsidies or bonuses for the water business or whether it doesn't?

And then second question, again, about the water business. What is the average tariff increase for 2026 for the water companies? And now another question about the hedging policy. How much energy have you already sold forward? Can you tell us something about 2026 and perhaps 2027?

And then can you give us an update about the works of the Peschiera Aqueduct? Where do we stand there?

Thank you very much for this question. I start from the first question. In the 2026 guidance, as usual, we have not included any bonus for technical and contractual quality. The guidance includes an average of the growth of water tariff by 6%.

As to Peschiera, the [ tender ] should be awarded in April. So this is state-of-the-art at the moment. And as to hedging policy, well, we are monitoring the situation very carefully. At the moment, we have an exposure of EUR 3 million of EBITDA for each increase of the ton of energy, but we are monitoring the market constantly for this purpose.

Now the next question, Javier Suarez with Mediobanca.

I have a few questions to ask as well, if I may. Now the first is a more conceptual or strategic question. Now the company has gone through a transformational change during the year. And now the company is very much -- is very much focused on regulated business.

Now in your guidance, the EBITDA goes up to 3.6%. And I wonder whether you can speak about the company from a structural point of view and about the possibility to grow debt. But what is the level of the debt that you can reach considering the structure that you will have in 2026?

Now second question is about the dividend. The dividend, as you said, is growing quite strongly. And this is related to the capital gains achieved from the disposal of the high-voltage grid sold to Terna?

Now in 2026, you will also have capital gains related to the disposal of the supply business. Now will that capital gain be part of your dividend policy in 2026? And then I'd like to have some indication of 2026 below the EBITDA. Now the consensus I see is around EUR 350 million of net income in 2026. Do you feel comfortable with this guidance for 2026? And what's the impact of the energy decree that has been approved by the government?

Thank you very much for your questions, Javier. Let me start from the energy decrease. Now the growth of 2% or the growth by 2% of Europe will have an impact of EUR 6 million for us. This is a regulated business. We have to see the evolution to actually answer your question.

As to the [ PN ], the change here can be estimated around 30, 35 megawatt hour. And this will have an impact of some EUR 10 million. However, it is included in our guidance because it is a very well-known factor in this moment. Then there is something which is related to the payment of the [ Ariat ] money by the distributor. This will be absorbed.

As to dividends, as you heard, we approved extraordinary dividends because of capital gains and results. Next year, we will have capital gains certainly, but the only -- well, the only known element is the dividend policy at the moment. And then if we have to update it, we should see it next year. As to debt, well, that we now are a payer focused on regulated business. Well, this helps us.

Now at the moment, our threshold that is around 3.7%, 3.8% because of the change of the perimeter of the business. We expect this will change, but we need to wait for the approval of the industrial plan. And we then should have to see what the rating agencies say. But as I say, the approval of the industrial plan here is what can help everyone in this direction. As to the guidance, we do not give any guidance below the EBITDA. But let me say that we do not expect any discontinuities below EBITDA.

Now the next question by Roberto Letizia with Equita.

I have a question about the debt guidance. Well, CapEx are going to be more or less the same as last year. CapEx is going to be quite high, EUR 1.5 billion gross, EUR 1.2 billion net. Is this a level of CapEx which is going to be structured as a level? Well, this helps us to understand the sustainability of the debt going forward.

And then again, about debt, are there any special considerations about changes of the working capital for 2026? And the change in the debt guidance, does that include also the money collected in the water business? Just wanted to understand how the mechanics work here.

Now as to the restructuring of the group, I wonder whether in 2026, also because of the acquisition of Aquanexa, is -- are there going to be M&A deals similar to Aquanexa?

I'm just asking this question whether 2026, we will have M&A surprises or whether you are cautious about M&As in 2026. And then the sensitivity of the prices of energy, is that a sensitivity of the group or related only to power generation?

Well, we know that there are increase in the procurement prices. I wonder whether the sensitivity that you gave us is an upside only for the power generation or considering the net effect on generation, we might have also the effect of the growth of procurement prices. Now -- and then another question of dividends. Can you tell us the capital gains that you expect in capital in 2026 so that we can then run our models for dividends? And then another question about the distribution companies.

Let me start, first of all, from the question on M&As.

Now ACEA as a group has an asset rotation, which was completed in 2024. Now as to further growth through acquisitions, well, as top managers of the group, we need to see whether there are opportunities in the market. And if there are opportunities, we need to grasp them. Our growth, however, is also related to a very strong organic growth in our businesses.

The acquisition of Aquanexa is certainly a first step through Aquanexa, we acquired a unique platform in the water services. This certainly helps us to grow organically, but it could also help us to see whether we can acquire other competencies, which are becoming very important, considering that networks are to become more resilient and more safe.

Now as to the internationalization, for instance, the contract for the planning of our water business. Well, certainly, there might be some operations internationally. But as I said, this is related to opportunities coming up on the market.

Now Valentina will answer the other questions.

As to the debt guidance, this does not include the disposal of one of the company in the water business. Now we know that this company is to be disposed of, but we, at the moment, are waiting. As to the working capital, well, it is certainly positive. We certainly are to also cash in the money as a result of the equalization of the bills. As to CapEx, now with the approval of the master plan, we will be able to give you a clear indications.

Now please remember that with ATO2, well, this helps us to plan CapEx and also consider what it takes for the power distribution. When I talked about the sensitivity, that was only related to the power business. But during the year, we do not expect further impacts.

Now considering the procurement strategy in 2026, we do not believe that in 2026, there will be major material changes. We might have some impacts on the net financial position in the water business but nothing that can change our guidance in an unexpected manner or in a manner which cannot be managed. As to the capital gains, well, we should see when such capital gains are cash in, the level would be quite high.

Now last question about the concessions. Well, there, we are waiting for the approval of the [ MA decree ] -- and at the moment, we do not have the visibility in order to give you greater or more ideas about this.

The next question by Emanuele Oggioni, Kepler Cheuvreux.

Congratulations for your results. Now I have a few questions. The first one is related to the management change. Now in the press, we constantly read that the top management of your group is going to change. Can you please make a comment about this? So then when are you going to update your business plan considering also the change in the perimeter of your group?

And then another question about the investigation of the antitrust authority related to the disposal of a company to Eni Plenitude. Can you tell us something about this? You said that the whole thing is going to be closed before the end of the first part of '26.

Then as to the tenders in the water business, now you in Italy won almost all of the tenders that were published in previous years, I mean 2025, I wonder which tenders are going to be issued or published in 2026? And if you can give us further visibility about this and whether there might be something relevant about volumes over and above the strategy, which implies moving towards new areas. But is there going to be a contribution to EBITDA?

Again, about water concessions. Now the budget law mentions the possible extension by 10 years of the main concessions for ATO2 until 2032, but also for the subsequent 10 years. Can you give us more details about this?

And then a very last question, if I may, about the synergies that you expect from Aquanexa. How much can the EBITDA go up, thanks to these synergies in the first 2 years, let's say?

Now let me answer your questions. Now the disposal of the supply business to, as you read in the press release, we have approved -- we have received the approval of the [indiscernible] this means a change in the perimeter of ACEA. ACEA will continue to manage the market of safeguarded or failed people. And this reviewed the enterprise value in a meaningful manner, revision of the enterprise value below 3%. As to the industrial plan, as we said often, the company is ready to present the industrial plan to the market. Now we are at the end of the mandate of the members of the Board. So we wait for the Board of Directors.

Now the budget law has approved the extension of 10 years, the concession that we have [indiscernible]. We need to submit our CapEx plan, but this is very important. Then there is also the plan on the part of the government to extend the concessions in the electricity business by 30 years. The company is ready. The guidelines that we are to follow are very clear. and we will be more precise as to the new plan going forward.

Now let me give the floor to Valentina, who will answer the other questions.

As to tenders, we know that the competition dialogue was completed for the [ Verbo ] tender, which envisages CapEx by EUR 2 billion. We are now waiting for the start of the third stage. Invitation letters will be sent will be published.

In 2026, we expect that a tender will be published for the management of the integrated water service in North Naples. And here, we are seeing also a number of small initiatives related to public-private partnerships.

Well, let me step in as the CEO. We expect in the second quarter of this year, we expect to complete the acquisition that Vernentina mentioned. We cannot give you figures in this moment. Certainly, there will be synergies. At the moment, we are not customers of Aquanexa. But since we have a 16% market share in the water business, we are the main player in Italy here. .

Well, Aquanexa could certainly be able to get some contracts and there will be service synergies that we can capture innovative technologies, services, which are more connected to the quality and the use of the water resource, which can also help us expand our business or grow our business.

[Operator Instructions] Ladies and gentlemen, we do not have any other questions in the conference call.

Well, then thank you very much for taking part in this presentation. Thank you, and have a nice day.

This is the Chorus Call conference operator. The conveference is now over. You can now disconnect your phones. Thank you.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

Good afternoon, ladies and gentlemen. This is the Chorus Call conference operator. Welcome, and thank you for joining the results as of the end of September of the ACEA Group. [Operator Instructions] At this time, I would like to turn the conference over to Mr. Dario Michi, Head of Investor Relations of ACEA.

Ladies and gentlemen, good afternoon, and thank you very much for joining the presentation of the results as at the end of September 2025 of the ACEA Group. Francesco Ragni, CFO; and Ms. Valentina Bracaglia, Deputy CFO and Head of Planning, will go through the presentation. I will give the floor now to Pier Francesco for the presentation.

Good afternoon, ladies and gentlemen. As usual, we shall start our presentation by considering the regulatory and market environment. In Water business, we point out the update of the -- 2-year update of the tariffs, whereas in the Electricity business, we would like to point out the lack of activation of the trigger with reference to the remuneration rate of the capital for 2026 remains at 5.6%. As to the price of commodities, the price of electricity and gas in the first 9 months of 2025 recorded an increase of 14% and 20%, respectively, versus the same period last year.

As to the interest rates, I'd like to confirm the trend which was recorded in the first 6 months of the year with a decrease of rates versus 2024, both in the long and short term of the curve. Let's now move on to Slide #4 of the presentation. As to the main highlights of the first 9 months of 2025, the results show a strong growth of economic items and confirm the soundness of the financial structure of the group.

First of all, I point out that in line with IFRS 5, the results of ACEA Energia, which is subject to disposal have been reclassified as discontinued operations. For purposes to have the possibility to compare data, we have shown pro forma results simulating the deconsolidation of discontinued operations and of Acquedotto del Fiora in the first 9 months of 2024.

Pro forma EBITDA reaches EUR 1.84 billion in -- growing by 8% versus the first 9 months of 2024. The increase of recurrent pro forma EBITDA adjusted to the changes in the perimeter, which you see later on, stands at 10%, which is driven mainly by the growth of the Water Italy business, grids and public lighting and generation. The contribution of regulated activity of the consolidated EBITDA is 95% of the total.

The net profit of the first 9 months of 2024 is EUR 415 million, up 46% and among other components is driven by the capital gain of the disposal of the high-voltage network for about EUR 109 million. The recurrent net profit grows by 8% year-on-year following the dynamic recorded at operating level. CapEx growth of grants grew by 6% versus the first 9 months of 2024 and now stand at EUR 1 billion.

The operating cash flow is positive for EUR 19 million allowing us to maintain a sound financial structure with a P&F financial structure EBITDA pro forma ratio equal to 3.39x. The ratio takes into account the future cash in of the disposal of ACEA Energia and the cash in of the disposal of the high-voltage network, which occurred in September.

Slide 5, we recorded the main indicators of the dynamics recorded in the first 9 months of the year, which, as I said, showed a strong growth trend. As to the EBITDA, ACEA recorded a growth of 10% versus the result of 2024 adjusted for one-offs and change in the scope.

CapEx net of grants are EUR 843 million, of which EUR 67 million related to activities of businesses which are disposed net of the perimeter of ACEA Energia which is to be disposed of, and investments CapEx, regulated CapEx represented 95% of the total net profit, which, as I said, includes the contributions of businesses that we disposed, grows by 8% on a recurring basis and reflects the very good operating performance.

The net financial position moves from EUR 4.944 billion as at 31st of December 2024 to EUR 5.083 billion at the end of September 2025.

I do apologize, but I can no longer hear the speaker. I do apologize, but I do not hear the speaker. The net financial position pro forma to take into account the asset rotation as described in the footnote moves from EUR 4.343 billion as at the 31st of December 2024 to EUR 4.693 billion as at 30th of September 2026 (sic) [ 2025 ] with a ratio debt to EBITDA, which is 3.39x.

The EBITDA in the first 9 months of 2025 has grown, which is due to tariffs and the operating activities of water, and it was also driven by the grid operations driven by the RAB and the growth of the results of generation and also because of prices. On the right of the slide, you see the main one-offs and changes in the scope and these amount to EUR 27 million for 2024 and relate to mainly past tariff items related to period 2022, 2023.

In 2025, changes in perimeter amounted to EUR 15 million and related to the incentives for a quality in the Water business. Now Mr. Ragni is reconnected. As to the recurrent net profit, on Slide 7, the growth versus the first 9 months of 2025 is due to the operating performance, which contributes positively for EUR 26 million. That effect is partly offset by the financial management because of lower financial proceeds because of the reduction of rates.

As to the EBITDA on the right, you see the detail of the one-off components. As to Slide #8 of the presentation. Now considering also the contribution of ACEA Energia in the first 9 months of 2025, we have invested around EUR 1 billion, up 6% versus 2024. Such investments for about 89% is related to regulated businesses of water, grids and environment.

The net of ACEA Energia which is subject for disposal, the contribution of regulated businesses to CapEx amounts to 95%. Out of that EUR 1 billion of investment, EUR 167 million were financed by the cash in of the grant. On the slide, you see the activities carried out in each sector like the widening and update of water pipes and sewers and the upgrade of the grid for general electricity distribution.

Slide #9. Here, you see cash absorption of the first 9 months of 2025, which is around EUR 140 million and is negatively affected by the changes in working capital related particularly to higher receivables and the network balancing, which we expect to be absorbed in the last quarter. And then also, it is affected by regulatory receivables, which is to be absorbed in the fourth quarter.

We have to underline referring to working capital that in the third quarter of 2025, ACEA generated cash for about EUR 66 million, thanks to the efficient management of commercial receivables and payables. To be more transparent as we did when we presented the results of the first 6 months, we represented in a distinct manner the contribution of the company's consolidated equity contribution is EUR 30 million versus EUR 9 million in 2024. This clarifies better the dynamic of the changes in funds, which reflects the reclassification of ACEA Energia among discontinued operation.

I will not dwell on CapEx charges, taxes and dividends as these items can be directly interpreted. As to M&As, we need to underline EUR 210 million represented by the cash in from Terna for the disposal of the high-voltage network equal to EUR 227 million. Now let's move on to Slide #10, the financial structure. Here, you can see that the average cost of debt as at the 30th of September 2025 stands at 2.04% versus 2.16% at the end of 2024.

The cost of debt is positively affected by the reduction of variable rates connected to the Euribor for the part of debt which is variable and which is equal to 20% of the total at the end of the third quarter. Moreover, let me tell you that in the third quarter 2025, we took out three bilateral bank lines for a total of EUR 350 million, which at the end of September was reimbursed the bond -- green bond amounting to EUR 300 million that was issued in 2025. I'll leave the floor to Ms. Bracaglia.

Slide #11, we see the main KPI of the Water Italy business. Let me remind you that the results of the first 9 months results were expressed pro forma so as to have the possibility to compare the data. In the first 9 months of 2025, the recurrent EBITDA adjusted mainly because of the incentives for contractual and technical quality goes up by EUR 42 million, plus 8%. That is due to tariff growth guided by CapEx and the increase of results of consolidated -- company's consolidated at equity and also because of operating efficiency.

Net of public grants investments grew by EUR 29 million, up 7% year-on-year and related mainly to operations on Acque del Sud and water cleaning plants and maintenance of grids. Net of investments related to Acquedotto del Fiora, growth year-on-year is EUR 61 million, that is up 15%. Let me now move on to Slide #12. Here, you see the main KPI related to the grid and public network.

Despite the reduction of the WACC by 40 basis points as of the 1st of January 2025, the recurrent EBITDA of the business goes up by EUR 29 million, up 9%. Such an increase is due mainly to investments made that is growth in RAB and also this is due to the update of the revaluation of the RAB starting in 2025. Investments net of public grants around EUR 210 million are slightly decreasing versus the previous year, whereas investments growth of public grants are growing.

In the environment area, net of one-off, the EBITDA is slightly increasing because of the greater margins associated to WTEs. The investments decreased by EUR 28 million versus the previous year. And this is mainly due to the revamping operations on the WTE of Terni out in 2024.

Let me now move on to Slide 14. You see here the results of the Generation business unit results. The recurrent EBITDA grows by EUR 17 million, and this is due mainly by the favorable energy scenario and the greater generation mainly to the Hydroelectric and Photovoltaic business. In detail, the energy produced rose by 24% from 485 to 602 gigawatt hour, thanks to an increase of 42 gigawatt hour in the hydroelectric production and -- plus 71 gigawatt hour in the photovoltaic production.

Investments in the first 9 months of 2025 amounted to EUR 21 million, growing by EUR 6 million versus previous year. I will give back the floor to Mr. Ragni for the updating of the guidance.

Thank you very much, Valentina. Now considering the strong growth experienced in the first 9 months of 2025, we have reviewed, as you have seen from the press release, the guidance of the EBITDA for 2025. The new guidance shows a growth of the EBITDA pro forma 2025 between 8% to 10%, starting from the restated result of 2024 of EUR 1.281 billion versus plus 6% and 8% announced in June 2025.

The restated 2024 result was calculated starting from the 2024 EBITDA of EUR 1.428 billion communicated last March, adjusted to exclude the contribution of ACEA Energia on disposal. And on the contrary, the contribution of the high-voltage network [indiscernible] help the term, but included here for the first 9 months of 2024. Now as to CapEx, the guidance is EUR 1.6 billion, of which EUR 1.2 billion net of public grants.

As to debt -- as to pro forma debt-EBITDA ratio, the guidance is confirmed and expect a range between 3.4 and 3.5x. Such range has been determined, including the debt and the cash in of the price of ACEA Energia expected in 2026. This is the end of the presentation.

[Operator Instructions] The first question is by Francesco Sala with Banca Akros.

Congratulation for your results. A couple of questions. The first one on the working capital. Can you tell us where is going to be the change for the full year? You said that you expect a reduction in the fourth quarter. Can you tell us something about it?

Now I'd like to know something about the closing results after the disposal of ACEA Energia to Plenitude. And how can this change the results? The third question, I'd like to have an update of the incinerator in Rome. Any piece of news there? I'd like to know whether in the next few months, you are going to give us an update of the business plan.

Let me answer these questions. As to the update of the business plan, we are working on it. The goal is that of providing an update within the first quarter of next year. As to the WTE, we are going on. We now own the land. As to ACEA Energia, we expect the closing as of the beginning of the year, next year. The company is already among the discontinued operations. So there will be no impact on the EBITDA.

There will be an impact on net profit, which will be offset by the money that we cash in and the capital gain that we cash in from this transaction. And we will give you the details after the closing of the deal because there are a number of calculations which are to be made and will be defined at the moment of the closing of the deal. As to the other question, I will hand the floor over to Valentina.

As to the net working capital, we expect a neutral trend, a neutral dynamic. In the last quarter, we expect a similar trend that we observed in the last quarter of 2024. And also as to the equalization receivables or equalization credits, we expect them to be absorbed by the end of the year. And this is the view that we have for December. Thank you very much.

The next question is by Javier Suarez with Mediobanca.

I have a couple of questions to ask. First of all, the 2025 guidance, I have a question which is more strategic in nature. When you presented your last business plan, you talked about a growth of the company around 5%. Now looking at the results, the company is going through a stronger structural growth versus what you indicated in the business plan.

So I'd like to know something about it more qualitatively rather than quantitatively. As to the guidance, I'd like to have an indication for 2026 guidance. Maybe you can tell us something about 2026. But in 2025, your guidance for net income, what will it be? As to the working capital, I'd like to know something more strategic. What are the management actions that the company is adopting to reduce the net capital -- net working capital absorption?

Thank you very much for these questions. I'd like -- I try to answer the first two questions together. Now versus the business plan expectations, we are experiencing a stronger growth. And with the new business plan, we shall update the figures. As to the trend that we expect for 2026 is that in the Water business, considering the consultation document that was published, which doesn't show strong WACC changes and also tariffs have already been approved. We expect tariffs to be in line with what we have experienced or have seen in 2025.

In the Energy business, there was no activation of the trigger, and therefore, the regulated return is stable. As to the growth trend of the EBITDA and the update of the numbers, we shall provide indications when we update the business plan. As to the guidance, we do not provide a guidance on the net income, but we can say that we do not expect changes, big changes for recurrent operations.

And therefore, the net income should not basically be -- will fall in line with the guidance that we have given for other items. Now as to other activities, we are working on credit collections on customers, activation of all of the capabilities and levels that we have to cash in the money. And then what affects the net working capital are the profiles of cash in of the [indiscernible] bills or equalization bills.

And now in the first 9 months, we see the normal results related to the network equalization. So here, the regulatory factor has an effect. Let me also tell you that we are seeing a greater stability of the net working capital in the year, and I think it's going to be stable, stable going forward is what I can tell you, generally speaking. Thank you very much.

The next question by Roberto Letizia with Equita.

I'd like to have an update on the electricity or energy distribution concessions. I'd like to know something about it. Do you have indications about it? Do you know something about the timing when this is going to occur? I'd like also to have an update on the -- update of the debt rating on the part of agencies. Is there a moment when you will rediscuss the rating with the agencies? And what are the priorities in that case?

What are the main interventions, CapEx, M&As, remuneration of shareholders, all of the three, can you give us indications about it? And then considering the reorganization and after you get out of the Retail business, what are the priorities? What is the focus of the management team? Is there going to be a review or a change in the governance of the company? Are there options opening up in the Water business, for instance, I don't know, Acquedotto del Fiora.

So I just want to know what's next for ACEA in terms of its structure. A couple of technical questions. First, why is the tax rate higher, which is now 32.5%. What kind of considerations are to be made going forward? And then are there going to be possible contributions for ACEA in relation to data centers?

Well, thank you very much, Roberto. Now as to the extension of the concessions for energy grids, well, this is a recurring question, which is usually asked when we meet. We are waiting for the authority to decide. As I have always said, whatever is decided by the authority is something on which we rely on the asset rotation that we made after the disposal of the high-voltage network and the disposal of ACEA Energia to come allows us to focus on our own main business, increasing investments in the Water business and in the environment sector.

As to M&As, when we speak of M&As, we do not look at M&As. Of course, if there are opportunities, we shall pursue them, but we have a growth trend, which is related to our own businesses. You know very well that Water business requires constantly investments due to the fact that there is a low supply of water and higher demand of water and networks are to be constantly maintained and updated.

As to the energy grids, you need to work on the resilience of such grids. Look at what happened in Spain, in Turin, in Bergamo. Hence, we shall focus our efforts there. As to the dialogue with the rating agency, this dialogue is ongoing. Of course, they would want to see the new business plan. And considering that our business now is 90% regulated, we shall use the greater financial leverage to focus constantly on our RAB and on the environment.

Now as to the governance, I don't know what to say. The disposal of the Retail business doesn't change anything in terms of our governance. And of course, we shall see, but I don't have much to say about this.

As to the tax rate, this is Valentina speaking. The tax rate is in line with the data of December 2024, which was 32.6%. The tax rate are affected by nonrecurrent items, disposals and one-offs. And so we expect a realignment of the tax rate to what we had in our business plan, which is also in line with our historical data.

As to the question about the data center, well, I can say that as a manager of the distribution network in Rome, we see the opportunity to strengthen the network and to, of course, serve the needs and demand stimulated by also the data center, and this is part of our plans.

Now as to further opportunity related to the Data Center business, we are assessing or looking to see whether there are opportunities, but we do not see for the moment specific developments. Now the Data Center business at the moment is more concentrated in the north of Italy, where there is greater demand whereas our Water and Energy business is more focused in the center and south of Italy.

But of course, we shall use our competence and our infrastructures. But this is something that we shall evaluate on a case-by-case basis.

[Operator Instructions] Ladies and gentlemen, at the moment, there are no other questions. No, there is one follow-up question by Roberto Letizia with Equita.

Now, I do apologize, I have a follow-up question to ask something about the JV with Versalis. Can you tell us something about this, the timing, the size of the operation?

Now this JV is for us an opportunity to extract more value from our plants, recovery and recycling of plastic. Now we are focusing on mechanic recycling and on the -- and on polypropylene for food use in terms of recycling.

And in this case, we are using the chemical recycling processes. Now we are studying the potential of this partnership, and we hope that this will have further developments in the future.

Ms. Bracaglia, ladies and gentlemen, at the moment, there are no other questions from the conference call.

Well, thank you very much for joining in. And if you have any other questions, you can call us directly. Thank you very much.

This is the Chorus Call conference operator. The conference is now over. You can disconnect your phones. Thank you.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]