Good afternoon and welcome to IREN H1 2024 Results. My name is Zach. I will be your operator for today's event. For the duration of the call, your lines will be in listening mode. However, you will have the opportunity to ask your questions at the end or during the conference, selecting Star one on your device's keypad. If you need assistance during the call, you can select Star zero on your telephone keypad, and you will be contacted by an operator. I will now hand over to Giulio Domma, Head of Investor Relations, for starting today's call.
Good afternoon, and thanks for joining the conference call to present IREN Group's H1 2024 results. I'm here with Luca Dal Fabbro, Executive Chairman, and Giovanni Gazza, CFO, who will present the data, after which there will be the usual Q&A session. Without any further ado, I hand over to Luca.
Good afternoon. The Board of Directors has just approved the results for H1 2024, which show an EBITDA growth by 5%, mainly due to the adjustment of regulatory parameters in the distribution network business and the full recovery of the value customer portfolio, thanks to the effective commercial strategy. The net financial debt for EUR 1 billion was kept under control and was up by 2% compared to the figure at the end of 2023. During this period, we have recorded investments for almost EUR 370 million, payment of dividends, and disinvestment of tax credits related to the super bonus.
Among the main achievements in Q2, we can include the signing of two green loans totaling EUR 280 million to support investments to increase the resilience of electricity and water networks, the acquisition of authorizations for the construction of Italy's first large-scale advanced agrivoltaic project in Rovigo, 49 MW, activities aimed at closing the acquisition of a minority stake in Egea to be completed. Finally, although these events occurred after June 30, on the industrial side, I would like to highlight the commissioning of the 38.5 MW photovoltaic plant in Tuscany. Supported by the results achieved in the first half of the year, we have decided to confirm the 2024 guidance. Moving on to page Three of the presentation, we review the main ESG indicators reflecting the sustainable growth path defined in the business plan, thanks to approximately 71% of the investments made with a sustainability profile.
With reference to the green transition, at the end of the first half of 2024, we record a 4% reduction in carbon intensity as a result of the increase in hydroelectric production, +49%, and the decrease in thermal electric production, -37%, and from waste to energy, -13%. It is also important to underline the achievement of a 72% separate waste collection in the historical territories and the increase by almost 19% compared to the same period in 2023 of the material recovered in our waste treatment plants, thanks to the investments made in new plants. IREN's strengthening process in the territories continues through the increase of the municipalities served in waste collection, with the addition of municipalities in the Cuneo area and extension of the district heating network.
Also, with reference to service quality, the results just approved show important progress with an increase in the satisfaction of customers visiting our stores, the achievement of 71% of district-sized water network, and the decrease by 3% of water withdrawn from the environment, thanks to the reduction of water leakages as per business plan. Moving on to slide four, we can see the main economic and financial indicators for the period. The EBITDA in the first half was equal to EUR 636 million, up 5% year-over-year, and in line with the results reported in Q1. The main variance factors for the period are very similar to those presented during the last conference call.
Among the positive factors fostering growth, we can mention the updating of regulatory parameters in the networks, which has had a very strong positive impact on the rate of return on invested capital, the RAB deflator , and the recovery of inflation on operating costs in regulated revenues. The continuous improvement of market margins, thanks to our commercial strategy, the organic growth in networks due to continued investments and inorganic growth, thanks to the consolidation also of acqua, energy, and ambiente. On the other hand, the headwinds in the period were the reduction in the achieved energy prices of renewables and waste-to-energy production compared to the same period last year and the persistent domestic weakness of the MSD market.
The lower contribution from energy efficiency activities for the completion of energy upgrading works supported by super bonus 110% tax incentive, the temporary unavailability of waste treatment plants for planned maintenance activities, and the failure of a WTE plant. Added to this is the reduced efficiency of the new plants caused by startup costs. It's worth noting that net of the lower contribution of energy efficiency activities of EUR 31 million in the BU energy, the profitability of the integrated energy chain is positive, as the lower profitability of cogeneration plants was offset by the growth in margins of energy customers, confirming the strong resilience of IREN's overall portfolio with respect to the energy scenario.
Finally, the EBIT increased year-on-year following the EBITDA trend, while net profit increased by EUR 2 million, despite the fact that the 2023 figure was affected by a reduced tax rate due to the presence of tax credits. I now hand over to Giovanni for in-depth presentation of business dynamics. Thank you very much. Let's now look at slide five with networks, which closed each one with an EBITDA increase by 26%, mainly due to the increase in regulated revenues, EUR + 40 million result of investments made over the years and the tariff review at the beginning of the year. These revenues are partially offset by an increase in operating costs, especially in integrated water service. It should be reminded that EUR 9 million were recorded in the first quarter related to the extraordinary inflation recovery on operating costs in 2023.
The consolidation of AcquaEn in June 2023 gave a positive contribution of EUR 5 million in this H1. Focusing on the bar charts on the right, we note investments are up 12% compared to H1 2023, especially in water and electricity networks. In addition, the increase in RAB by almost EUR 300 million, + 11% versus year of 2023, is achieved thanks to the equal contribution of investments made in past years and to the regulatory evaluation linked to the application of the deflator, approximately 5.5% weighted average rate. In the second half of the year, we expect the EBITDA will be in line with the first half of the year, net of EUR 9 million and extraordinary item accounted for in Q1.
Moving on to waste business unit, slide six, we show a first-half-year decrease compared to the same period of last year, -5%, with opposite dynamics for collection and disposal. The growth in collection activities, thanks to the recovering tariffs of higher inflation-related costs and efficiencies for EUR 14 million in total, is more than offset by EUR 21 million reduction in treatment and disposal activities. The contraction of the plant margin is due, one, to lower plant availability compared to last year at Turin WTE because of planned maintenance of the main turbine and the power generation alternator. And in Q2, there was a plant shutdown caused by a breakdown that temporarily suspended waste treatment that were then sent to other disposal hubs. This has caused also a reduction in power generation. The combined effect of these two phenomena was negative for EUR 9 million.
Two, the prolonged startup phases of the new waste treatment plants, which resulted in continuing startup costs. Three, the depletion of the available capacity of some landfills, which led to a reduction in the volumes of non-municipal waste managed by approximately 14% that you see on the right-hand side in the lower part. Four, the worsening energy scenario with negative effects on electricity and biomethane transfer prices. These negative factors were partially mitigated by the consolidation of Sienambiente as of January 1, which contributed with EUR 6 million.
In the second half of the year, we expect waste collection activities growth in line with that recorded in the first half-year, EUR 40,000, while in treatment and disposal activity, a performance similar to that of the first quarter, anticipating a full recovery of operation of the WTE. In slide seven, we analyze the dynamics that led to a 30% reduction in EBITDA of the BU energy. First, renewable generation benefited from 40% higher hydroelectric production volumes, thanks to the abundant rainfall, and photovoltaic production volumes, thanks to the contribution of new plants managing to overcompensate the decrease in electricity prices. Most especially, the average price of EUR 108/MWh was achieved, 30% lower than last year due to both lower hedging costs and the lower price captured on the MGP.
Secondly, district heating business reported a drop in margins of EUR 9 million caused by a reduction in sales tariffs, as they are still indexed to the price of gas, despite an increase in the volume of heat sold, 5% due to the higher volumes served. So the group achieved these results in this business. So CCGT cogeneration and thermal electric plants reported an EBITDA decrease of EUR 28 million due to both a sharp contraction of clean spark spreads and lower opportunities on the MSD market, EUR 12 million versus EUR 60 million last year. In the second quarter, we managed the flexibility of our plants opportunistically in order to capture positive spark spreads in the day-ahead market, even at the cost of reducing operating hours due to base prices that were predominantly negative throughout the period.
Also, impacting the reduction in volumes was the failure of a turbine scheduled maintenance in a CCGT plant unit. All this resulted in a reduction in production volumes of 10%, as you can see in the lower right-hand side chart. Finally, IREN's solution with efficiency energy activities reported an increase of EUR 31 million due to the completion of the renovation work related to the end of the 110% super bonus incentive. The second half of the year will replicate what was already achieved in the first period. The expected hydroelectric production in the next six months, guaranteed by the levels of hydroelectric reservoirs, is expected to be about 0.7 TWH. Furthermore, also from the point of view of margins, the expectations are substantially in line with the first half year.
We can notice in slide eight that 48% growth is related to the full recovery of the portfolio value, thanks to commercial actions implemented. The growth reported in H1 2024 is the result of the alignment to market conditions of our commercial policy on the entire customer base, which, despite the very competitive market, remains stable compared to the end of 2023. A portfolio that at the end of June included almost 2.2 million customers with a performance of power customers on whom would confirm the continuing growth trend. Looking at the volumes, we can see an overall increase by 8% due to both more sales opportunities to wholesalers already recorded in the first quarter and an increase in volumes for business and retail customers. Conversely, gas customers are decreasing due to a commercial phase with fewer acquisitions of this type of customers.
Moving along the IREN Plus business line, there is a continuing growth in the sales to customers of products and services bundled with commodities such as insurance and connectivity services, the latter also through multi-year contracts. In the second half of the year, we expect EBITDA to be lower than in the first period due to seasonality of margins. Therefore, the EBITDA target for the market BU at the end of 2024 is approximately EUR 230 million-EUR 240 million. We also point out that as of July 1st, approximately 200,000 customers were acquired through market liberalization options. Net of customers transferred that entered our portfolio. Moving to page nine, we'll look at the elements that led from EBITDA to group net profit. The depreciation and amortization increased by EUR 33 million as a result of investments made last year, and this includes EUR 8 million of depreciation of non-recently integrated companies.
For the full year 2024, growth will be approximately EUR 40 million. That's the expectation. The decrease in provisions is due to the extraordinary provision made in 2023 and released to sustain it, decreasing the amount of about EUR 34 million. The average cost of debt was 2.1% versus 1.8% in H1 2023, and it's stable compared to Q1. Finally, the group net profit for the period amounted to EUR 145 million, up 2% year-over-year. The reduction in the increase in net profits is mainly generated by higher tax rate, which now stands at 30.5% compared to 26.1% last year due to the non-taxability of extraordinary contributions to compensate for higher energy price, but also the higher profits linked to minority stakes, up by EUR 7 million.
Moving on to the net financial position for the period, page ten, we note that debt is likely up EUR 80 million compared to the value as at the end of 2023. The operating cash flow, equal to EUR 465 million, benefited not only from EBITDA, but also from the disinvestment of tax credit from 110% super bonus, which reached EUR 250 million in the period, which is also expected for financial year 2024. The net working capital is increasing by about EUR 300 million, of which EUR 150 million are structural and will be maintained at year-end, as anticipated in the first quarter. About EUR 100 million is due to the effect of the declining energy scenario. Our group, as a financial benefit from stock exchange sales, we benefited also from higher credits that are not immediately chargeable in regulated business due to regulatory increases for the portion exceeding the tariff cap.
The increases we had in 2024 resulted in an extra cap that will not be invoiced at the end of 2024. In addition, in the second quarter, there was about EUR 15 million of investment grants related to the NRP, for which reimbursement procedures by the states are longer than expected. Another EUR 150 million are expected to be temporary and are expected to be resolved by year-end, of which approximately EUR 70 million is related to water and waste for billing the tariff increases related to H1, around EUR 40 million for continuing billing delays on energy efficiency. A further improvement of payment terms of gas suppliers contracted for the new 2024-25 heating season, with a contribution of approximately EUR 40 million. Operating cash flow generation for the period fully covered capital expenditure of EUR 345 million, and also M&A transactions related to the consolidation of SENAMBIENTE and acquisition authorization.
Finally, dividends of about EUR 180 million were reported, of which EUR 26 million were paid to minority shareholders. I hand over to Luca for the closing remarks.
Thank you. As to the guidance for 2024, the results of the first six months allow us to be more trustful with regard to 2024. We have more confidence, as anticipated by Giovanni. In the next half year, we expect a confirmation of the growth in regulated businesses and a partial recovery of profitability in waste disposal activities due to the absence of planned shutdowns, offset by lower contribution from the energy sector, mainly due to a seasonality effect. Given these indications, we confirm the guidance given during the presentation of the business plan update. EBITDA EUR 1,240 million + 4% compared to financial year 2023. Group net profit in a range in the region of EUR 260 million or EUR 70 million, + 4% compared to last year.
Investments of about EUR 1 billion, including the purchase of minority stake of Egea for EUR 85 million, and net debt to EBITDA ratio of 3 + 3, sorry, 3.3 due to the operating cash flow, which will fully cover the investments for the year. We can now move on to the Q&A session. Thank you.
Thank you. I would like to remind you that if you want to ask a question or comment today's conference, you have to press star zero on your keypad. To withdraw it, you have to press star two. Next question, Javier Suarez, Mediobanca.
Good afternoon. I have two or three questions. First question, can you give us an update on governance? I would like to know where you are from a governance point of view and how is the governance-related discussion within the company?
Can you provide us an update on possible appointment of a new CEO and possible timing for the appointment? Thank you. Second question is about net working capital absorption in the first half of the year, EUR 106 million. You have mentioned a significant contraction in H2, about EUR 200 million. Can you help us understand what are the reasons for this change in net working capital absorption that we have observed in H1? And next question, can you provide an update on expected growth in renewable energies? In the past, you have mentioned it could be possible to find a minority financial partner for them. Can you provide an update on your strategy and what we should expect? Thank you.
As to your first question, I will answer to first and third question. Giovanni will answer the second one. Update on governance and appointment of a possible CEO.
As already said, governance is now managed by the Executive Chairman and Deputy Chairman. The shareholders, majority shareholders, have got the right to appoint a CEO if they deem it appropriate. The syndicated arrangements are now object of reflections, of analysis. If a decision is made, a CEO can be appointed with an internal process in line with the arrangements. We will receive communication of that, and the Board of Directors and general shareholders meeting will then acknowledge this appointment. So far, there has been no decision made on that. So the governance is still the same, and this is what I can tell you by way of answer.
As to your question number three, strategy on renewable energy sources, we confirm that we are exploring the possibility of conferring all of our renewable solar assets, photovoltaic in a new company, and to put on the market 49% of the ownership of this NewCo so as to finance additional renewable developments. The idea is that with the money we acquire with 99%, it would allow to implement new projects. We have a rich pipeline which needs funding to avoid increasing the level of debt. This is the option we have outlined, Giovanni. We envisage a reduction of about EUR 150 million out of EUR 300 million until year-end along three main drivers. First driver, billing of tariff increases for CCGT and waste. There have been important measures at the beginning of the year, but as you know, these measures require a complete process involving different actors.
In some areas, the process is almost completed, and this will unlock billing starting from the next few months of these amounts with collection by end of December 2024. There is also another item relating to invoices to be issued for energy efficiency. End of June, we have invoices to be issued. The administrative process hadn't been completed yet. Now they are going to be issued. Some are being issued. They are going to be issued to the Italian public administration, and we expect collection by end of December 2024. Last, there is another action, i.e., renegotiating contracts for gas supplies. We have already signed all agreements with our suppliers for the 2024-2025 campaign.
In this context, we have also managed to obtain a share of shipping deliveries, so gas delivery to the virtual trading point at more favorable payment terms, which will allow us to have a contribution of about EUR 40 million end of December 2024. These are the three main drivers leading us to an estimate of reducing the increase by EUR 300 million- EUR 150 million that we are going to measure end of the year. About 50 of these millions relate to PNRR contributions, which have still got to be collected. To apply for reimbursement from the public state, you have to pay your own suppliers, but the complete process and payment is longer than expected. So we should, in our forecast, end of December, this will have to be envisaged. Okay, thank you.
Next question. Stefano Gamberini, Equita.
Good afternoon. I have three questions.
First question, can you help us understand better the water distribution performance? EUR 39 million increase in EBITDA in H1, EUR -9 million one off, and then EUR 30 million in the rest of the year. So EUR 60 million, correct me if I'm wrong. So 30+ 30, EUR 60 million, while gas distribution, electricity distribution will slightly increase. Can you help me understand these EUR 60 millions? Can you break them down? And is this trend going to continue also next year and why? And linked to this, if I have understood you, tariff increases this year could not absorb the whole increase you are entitled to get. So how much has been postponed to next year and what is the increase we can expect in 2025? Then a question about waste.
It's surprising to see EUR 10 million impact linked to one-off maintenance costs, and then we have about 15 that are linked, probably, if I got you right, to plans that are still in the startup phase. So here we have the risk. Are there any technical problems? Are you going to overcome them? When are we going to see the full impact of these plans on the EBITDA in H2 or in 2025? Third question about your financial flexibility. If I remember correctly, I have read an interview of the chairman saying that there could be an interest on your side if there are assets in the gas distribution to be sold in Italgas to IREN gas transactions. Is this true? And why are you focusing on gas distribution and not on other businesses?
I'm thinking of water distribution, of electricity, of renewable energy sources with probably a more significant green aspect. Thank you.
Okay. Reconstruction of the water is correct. We have EUR 39 million - 9. It's an effect in 2023 that cannot be replicated in H2. The increases have these tariff increases exceed the cap and will generate credits which will be recovered for EUR 40-EUR 50 million, which will be reclaimed in the next financial years for waste business unit that has been a reduction linked to maintenance and also to a failure, which has had an impact on WTE generation. And in this half year, and also in H2 partly, we have criticalities affecting some new plants, some difficulties in fine-tuning, in setting up the organic waste plant and the pallet plant in Vercelli, which haven't reached yet their full operations.
As already commented during the quarterly call, we will see solution of these technical problems only in 2025. Another deviation factor for these results is linked to the depletion of landfill capacity. So we have depleted capacity. This has a significant effect, and in this area, we have a process to get new authorizations. Their contribution will not be in 2025. Starting from the beginning of 2026, we have advanced authorization activities, so we expect to have another 1 million-ton total capacity available at the beginning of 2026. From a point of view of recovery in 2025, we will try to recover what we have lost, the EUR 10 million lost to the stop of the WTE, and another EUR 15 million from plants that are not performing at maximum levels, plants that are causing extra startup costs. Thank you very much indeed.
With regard to gas, gas networks, as I said during the previous meetings, we are interested in looking at some gas networks. So this is what we are observing. It's not a number one priority for the company. We have other options, especially renewables, which are more interesting to us. We wanted to try and find synergies on neighboring areas or swaps without a specific target included in the plan. It's more an opportunistic consideration. Thank you very much. Just a quick follow-up. The cap is 8.5%. Now, the EUR 60 million with this increase in tariffs of 8%, is it inclusive of 8%, or are we above this level? Just understand whether next year we can expect similar increases or if we have already recorded double-digit increases reflected in 2024. The caps are lower, 4.5%. So the invoice, the tariffs invoice to the customers can be increased by 4.5%.
I mean, the resolution was made, but the tariffs are capped to 4.5% year-on-year. So I was referring to the whole thing. Also, the environment has the same mechanism, EUR 40, EUR 50 million, and EUR 10 million to be referred to waste. Thank you very much.
Next question will be asked by Emanuele Oggioni .
Good evening, and thank you for the presentation. I have a question concerning the retail business market. Profitability is always quite good, above expectations, and I'd like to understand the level of sustainability, not just for H2, but also for 2025. How sustainable are they considering most of the volumes of sold electricity? Since customer base is flat at 2.2 millions, I'd like to understand where this continues to increase in margin, unit margins, and customer-related margins.
And also, wholesales have grown by 27% in H1, and probably this is due to your long position on electricity generation and maybe on hydroelectric power generation, which led to increased sales that may be temporary in nature because they may be linked to rainfall, to the level of filling of the basins. And so they are not necessarily sustainable for the future. I'd like to understand the level of sustainability.
Well, first of all, we have visibility of two years at least, 2024, 2025, with regard to the performance. So we are very confident also in terms of midterm sustainability, one or two years. Most of the profits and the margins are related to retail and not wholesale. So we have variable contracts at variable price. So we do the lock-in, and we add the margin on the purchase price.
So this is a way to securitize the value in a way to guarantee the stability of the value. The churn rate has increased a little bit, but not as much as we expected. This is a positive effect. The lower the churn rate, the lower the cost of defense, and the lower the loss of customers acquired before. So we have two effects. The effects of a variable contract, which is more tolerant in the portfolio, a lower churn rate than we expected. The combined effect is our good margins that will be sustainable at least for 2024-2025. Thank you.
Next question will be asked by Davide Candela from Intesa Sanpaolo. You have the floor.
Good afternoon, and thank you for the presentation and for the questions too. I have a first question concerning power generation.
Can you share the progressive hedging on the price structure that you expect now for 2025? Another question on power generation and development of renewables. Can you remind us how big is your pipeline and your degree of visibility in the pipeline? And a third question, again on retail, just for curiosity. Is there a risk on the retail business? Is there a risk that a lower churn rate, as was observed, may cause imbalancing costs for coverage that you did not envisage or not? Or what would be the positive impact on the portfolio otherwise?
As far as hedging for power generation is concerned, we have already developed a major coverage campaign for the renewable section. We have 65% of expected production covered for 2025, 1.4 TWH at a price of EUR 100 per MWH.
As to the production of thermal electric power, we still have no very positive signals on clean spark spread for 2025, but opportunistically, we've already covered 10% of the production at four. On the thermal electric part, we believe that the market is not looking forward and is not expressing the marginality for 2025. So we haven't completed our coverage plan yet or the hedging plan. The goal is 40%-50% also on thermal electric production. We have 1 GW under development in the pipeline at different levels of maturation or maturity. One is more mature, and the other part is less mature. We are acquiring Arc. We acquired one of the biggest photovoltaic plants in Rovigo, etc. We are looking also at other assets. So we are growing by organic lines with the TW and by acquiring other assets where the price is good.
As to your last question on the retail, the risk of negative effects due to lower churn rate, I don't expect one. We already made analysis, and we don't see an imbalancing effect due to lower churn rate.
Thank you. I have a follow-up question concerning the hedging issue for thermal. I'm wondering, is there going to be a stability of price due to clean spark spread? And what will be your approach in 2025? Will you follow what we saw in the first half, bidding only when you see market opportunities, or will you be exposed to the full market? I just wanted to understand the landing point, the least worst scenario in these cases.
The approach is opportunistic. So we will continue to monitor the market and market conditions. We also have production combined to our customers.
We have about 20% of sales at retail customers at fixed price with natural hedging. So what I presented should be interpreted with an overall view. Thank you.
Next question will be asked by Francesco Sala from Banca Akros.
Good afternoon, and thank you for answering my questions. I have a question of financial cost in the second half of the year compared to Q1. What could be expected for the last two quarters? On D&A, what can we expect for the second half of the year? And then what is your gas procurement strategy for the 2024-2025 heating season?
As for the financial cost, we expected net balance of about EUR 90 million, EUR 40 million in the first quarter. We expect a growth in expenses in H2 with an average cost of debt of 2.2%.
As to the depreciation item, we have EUR 120 million at the end of the semester, sorry, EUR 320 million, and the expectation is to move to EUR 640 million. In 2023, we had these homogeneous dynamics of depreciation. So the EUR 40 million is not sure. So the forecast of EUR 640 million translates into a year-on-year increase of EUR 40 million.
Thank you. If you have a question or give a contribution to today's conference, please select Star one on your phone. We have a follow-up question by Stefano Gamberini. Over to you.
As to project financing for concession costs, in payment, they launch a new project. Can you give us a snapshot of the next step? Is the litigation coming to an end, or are there going to be any appeals? What are the main pillars of the project? Sorry.
To go back to the issue of water distribution, because with a 3%-4% increase in tariffs, which is a small increase, how can you obtain a high double-digit increase, a 25%-30% increase below EUR 60 million of EBITDA? Is there a breakdown between linear and non-linear growth, or is there any efficiency? So I'd like to understand the causes of this uptrend for 2024-2025.
As to the hydroelectric concession, yes, the complaint has been rejected. We can appeal to the Consiglio di Stato, to the State Council. But they did not receive a positive opinion. It was a Bolzano-based company that filed this complaint. As far as we are concerned, we are waiting for the region to declare the public use of the works. We are waiting for them to launch an option. We will participate. They will launch a call for tender.
We will submit our offer, and then we'll wait for the outcome. The renewal is after 30 years. It's about EUR 320 million investment with a return of 6%-7%. As to the tariff increase, I'd like to point out one detail. Economically, the entire tariff increase is accounted for in the financials as a rental limit. Then the invoicing is capped at this increase of 4%-5%. So basically, you generate a credit to future years. So the P&L has to be measured on the basis of a much bigger increase. The cap then generates a credit versus future financial years. This is due to the fact that we agreed with the entity identified in the plan. This allows us to recover full billing to the end customer.
We have this decoupled mechanism between accounting in the P&L, which accounts for the full tariff increase, and the asset accounting, which must fulfill the cap.
Thank you very much for this clarification.
There are no more questions. I hand over to Giulio. You have the floor.
Thank you very much indeed for taking part proactively in this financial call. Before I hand over for the Chairman for his conclusive remark, I would like to wish you a very restful summer. Thank you very much. We will be available to provide any further clarifications. I would like to thank the colleague for helping me. Next meeting, next call of the analysts will be held after the summer break. Have a very nice evening or rest of the day. Thank you and have a nice evening.