Good afternoon, and welcome to the presentation results of Dominion. If you want to follow this presentation in English, you can do so selecting the English language on the world icon at the bottom of the screen. Before starting, we would like to remind you that once the presentation is over, as usual, we will move on to the Q&A session. You can leave your question in writing under the Q&A section of Zoom, or you can speak via the telephone by raising your hand in the Zoom menu. We have today with us, Roberto Tobillas, who's the director, and Patricia Berjón, who's the director for corporate development.
Hello, good afternoon, and thank you for coming to this presentation of the third quarter of 2022. The figures that we published this morning show the good results we obtained in the first part of the year have not only been maintained, but they have sped up with more growth in terms of sales and operating margins. In parallel, we've also maintained a clear focus on generating value for shareholders with a repurchase program for more than EUR 13.5 million and dividend in this year and our usual financial management. My reading of the results is that under an unfavorable context, we've obtained some very good results in the business, which means that the year is going to close very well, and we have impacts on the low segment of our accounts.
In other words, we have observed a very positive development of the operation now that we've made the margins grow in a context with lots of inflation. We also have seen how the increase in interest rates and the depreciation of the dollar and the copper prices have increased our commercial costs and have had negative effects for the balance sheet. If we move on now to our figures in these nine months of the year, we can see that there's been continuity in terms of growth, and there's been very good behavior of the B2B segment, both in the case of project and services. B2C is more affected by consumer trends, but we hope that with the recent agreement signed with Repsol, we'll be able to recover the trends that we saw previously as regards growing in the energy vertical.
The business figure has grown 7% in these nine months, which means that it's 7.3% in organic growth above the commitment that is established by our strategic plan, which is 5%. The influence of Forex is +1.9% accumulated. Well, it has increased in this third quarter and is being counteracted with inorganic growth of -2.1%. Mainly, well, this refers to the reclassification of metal structures activities, which is currently for sale. This 7% growth that we can see in terms of sales is bigger in margins and has been reinforced by the different levels of leverage we have. Because on the one hand, we have a structure that we reduced down to 2.4% over sales, and we also have controlled levels of CapEx and amortization.
We have double-digit growth of EBITDA and EBIT, 17% compared to the same period of the previous year, which means that we have an EBIT of EUR 52 million. We could also observe the influence of the market dynamics in other segments of the account, as I said, in the balance sheet expenses that affect the financial results because of the interest rates and also the valuation of the equity swap and other financial assets, including different foreign exchange variables. These market variables have a negative impact of about EUR 9 million. In other words, with the same conditions that we had last year, the result would have been EUR 9 million better.
This means that we have a net profit of EUR 33.2 million, which is 10% higher than the figure reported for the same period in 2021. This figure, that is the non-attributable profit, we have the results of renewables, that is EUR 5 million, and we also have the results of interrupted activities, which is another EUR 5 million approximately. If we were to analyze the management of the different businesses, I believe that we should underscore the very good behavior of the contribution margins, which, if we look at the total of the contribution margin, growth has reached 8%, which means that we have a figure of EUR 107.5 million. Now, this evolution of the contribution margins is positive if we take into account the inflation that affect costs.
This also shows that we can absorb or transfer these increases, maintaining our margins. We've even grown, although it's becoming more and more complex, and it applies more pressure to our customers. It's much more important than ever before to improve the efficiency of our operations. As you know, B2B accounts for, well, if you bring together project and services, accounts for 85%-90% of the business and shows its strength once again with a high level of organic growth in terms of projects and services. Organic growth is, very, very high because we've seen 10% of growth in a quarter.
I'd like to mention that industry recovers its growth trend compared to the same period of 2021, and that technology and telecommunications has grown exponentially, thanks to the contracts in Colombia, for instance, meaning that the downward trend has been reversed because of some of the investments that have been made in this field activity. Energy plays the same role. It has the same importance. Then we have the maintenance contracts for electric grid contracts. Well, as regards the contribution margins of B2B services, B2B services recovers levels above 12% in a quarter, thanks, among other things, to the stabilization of some of the contracts that were in a ramp-up for a year.
The project margins continue at levels of 18.5%-19% for the year, with profitability levels far above the minimum of 15% established by our strategic plan. As we can see, there's been a B2B evolution that has exceeded our expectations. B2C is being affected by consumer trends. This has to do because of the slump in the energy portfolio. As we've mentioned on previous occasions, it's to be expected that with a new agreement signed with Repsol, this trend will be reversed over the next months. On the other side, we have more customers in telecommunications. We have more than 250,000 services, although this doesn't compensate the sales figure because an energy bill is 3x higher than a telephone bill, but indicates the margins are being increased.
As regards to the agreement with Repsol, we've already spoken about how difficult it was to make a better use of our The Phone House channel because of the high energy prices. This agreement means that Repsol will provide a much more competitive and attractive offer for our customers, which means that we'll be able to go back to the levels we had reported in the past. This agreement means that we're going to share customer management, therefore comparable margins of those that already exist and those that we're going to attract in the future. Subsequent to implement this agreement, which we expect it will be approved by the CNMV, which we hope will take place in November, we will include in the business figure the margin that applies to us as part of the agreement.
Whereas the contribution margin, what we expect that is going to be a similar figure. We also expect that there's gonna be a bigger margin for sales. As regards other agreements and other corporate operations, I would like to say that during the month of October, in other words, we don't have the figures of the third quarter included, but we've acquired an environmental service company in Colombia. Although this is a bolt-on operation that is not very big, it does offer lots of opportunities as regards providing our services connected to sustainability in the Latin American region.
With this acquisition, we are consolidating a competitor with an excellent position in a country like Colombia, in a country where we have grown a lot in recent years, and we have our own structure that we're using for leverage purposes, and we have integrated supplementary capabilities, and we've included our technologies that are different to those available in the region. We've included this or are offering them to our customers, to their customers, and we're also going to enter new markets, and we're going to sign bigger contracts, too.
As regards to the balance sheet, well, you know that we don't publish it in nine months, but there are no big effects in relation to what we've published at six months. You probably remember the reclassification of the assets and liabilities associated with these activities that are for sale.
The main changes would refer to the payment of EUR 13.5 million for the dividend on July the sixth, what we invested in our own shares, which was EUR 23.2 million at nine months. These expenditures with an operating cash flow generation means that our net cash position isn't really playing an outstanding role. We've also mentioned that we've finished the second repurchase program or buyback program, because you probably remember that we started some time, well, a year ago, and we've acquired over 5% of the company, EUR 8 million shares that we will advertise over the next few weeks. Therefore, this is a direct remuneration to the shareholder, and which, together with the previous buyback program, represents another 11% of profitability to what we already provided via the dividend.
We are creating value, and we are paying our shareholders according to the market listings. Before moving on to your questions, I would just like to stress the solidity and resilience that our company has, because although in spite of the very complex environment in which we're operating, and at the company, we believe that with our financial discipline and with our diversification, we will manage to overcome difficulties as has been demonstrated by our figures delivered every quarter. Thank you very much for your attention, and now we're going to move on to your questions.
I would like to remind you that you can ask via the chat or you can ask your questions directly via the telephone. Okay, well, let's start off with the telephone. If you're using the Zoom app, you can use the Q&A section, or you can raise your hand and we will give you the floor. Should you be following this via the telephone, please press asterisk nine to ask a question and wait for us to give you the floor. Let's start off with the Q&A, and we're going to give the floor to the people that have raised their hands. It's Carlos Tobar from Santander first.
Hello. Good afternoon, everybody. Can you hear me clearly?
Yes, perfect.
Thank you very much. Well, thank you very much for accepting my questions. One is very easy with figures. Patricia, could you give me the value of the backlog on the closing date at nine months? The exact value, please. I would like to ask you about the current context. Do you think that there are any risks involved, as regards finishing below your objective of growing above the levels as stated in your strategic plan?
Or do you think there are any risks in this regard? I would also like to ask you, what do you think about the current situation in relation to Q4 and in relation to 2023 too. More specifically, I have another question that is related to inflation. To what extent do you have enough capacity to transfer the increase in inflation that we're all experiencing? Is there gonna be a certain amount of growth in that area next year? What about projects? What kind of repercussions are they? Do you believe there could be any risk with regard to margins, being penalized or affected by these cost increases over the next few quarters? Could that happen? Thank you very much.
Thank you very much, Carlos. Well, let's kick off with the first question, the backlog. We still are above EUR 600 million, EUR 606 million in portfolio. It's a complex environment, but the truth is what we have seen is that we are still adding on more projects to the backlog at a very good rate, because if you've noticed, our turnover now has a high level of consumption. In any case, we're still talking about EUR 600 million. You can see that our commercial activities are producing results and so are our project activities.
You were also asking us about expectations for the year as regards sales over EBITDA. I think that the figures we've just given you now, in a way, I think that what they do is demonstrate that although it's a complex environment and the operation or the business is going very well, and in that regard, we don't really see any reasons to not fulfill our commitments, our yearly commitments. We are at the end of October, so we have a very high level of visibility. You were also asking us about the situation of the business, the current situation for Q4 and for 2023. It's obvious that the context is complex and that there are all kinds of situations starting off with inflation that affects our operating costs that have to be managed, which is no easy feat.
We've done things very well, and that has been demonstrated by figures. As I pointed out in my introduction, there are more and more pressures, and this has to do with your final question, how can we transfer this increase in costs? Because in some cases, this has not been materialized, but in the next months, it is to be expected that this will happen. This is very important to improve the efficiency operation. That's something that we do very well, but we have to do much more in this context, and we have to adjust all of our costs, and then we have to negotiate things with our customers. As regards services, these contracts allow you to transfer costs easier. That's in theory, of course, because then you have to negotiate things with the customer.
You have to look into the possibilities of transferring the costs and seeing what kind of balances have to be established. The situation for us is difficult for our customers and for ourselves. In the case of projects, we are working with open books in many instances, and we've also done our homework with regard to those things in which we believe we were going to have difficulties and we've anticipated things. The truth is that this is what we are going to do over the next months. I'm not sure if my colleague wants to say something about this.
Well, yes, it's the same thing. It's recurrence and resilience. This is what Patricia was talking about. I think what we are in October, we have a very good inertia from an operating perspective. You were talking about transferring costs, and projects and so on and so forth, but I can see that the world is going back to the previous price levels and, logistic costs are reducing, and we managed to control that perfectly well.
I think that the very bad times belong to the past, and I subscribe what Patricia has just mentioned in other B2B services and B2B projects. I believe that we are going to be able to see. We're going to be seeing improvements in efficiency, and we are working very hard to increase this recurrence and this visibility. We have a very healthy project portfolio that is, very profitable, and the figure was 18.9%, I think. We always say that we stand above 15%, and I fully subscribe that we could even have some tailwinds, and this is what's going to happen in the future. This is gonna be our approach.
Thank you very much.
Thank you, Carlos, for the question.
Okay, we can continue with Miguel González from JB Capital, please. Go ahead. Miguel, I think you've been muted or somebody's muted you.
Can you hear me now?
Yes, perfect now.
Great. I'm sorry. Yes, I think I was muted. Well, thank you very much for giving me the floor. I have several questions for you. The first question has to do with the discontinuous activities, because it's been another EUR 2 million this quarter related to the metal structures business. Could you give us an update on how the sale process is going?
To what extent could this affect your net profits? The second question is that you've given us some details on the Repsol transaction. Could you give us some information on what the cash-in of this operation has been like? Are you going to consolidate this activity? Because according to what you've said, this is going to be the case, apparently. Then a more strategic question, because I always ask you the same thing, but I think that now we have the maturity of the VAS participative loan coming along. Do you know what it is you're going to be doing, or do you expect to consolidate the VAS business, or are you perhaps looking into the sale of shares to avoid consolidation? I don't know. I think that any information that you can give us is going to be very useful in that respect.
Well, this is Roberto speaking, and then Patricia can say something if she wants to. As regard to the manufacturing of metallic towers, well, that's the only production activity we had. We're going to receive this information very soon because we are currently negotiating this operation now. Very little more could be said. Let's say that we've reached the final mile, and that in the next two months, or perhaps earlier that, or before the closing of the year, we're going to have visibility. What has happened is that what we had in Denmark, there's been a closing down, there were restructuring costs, et cetera.
I'd say that what has been included in the book is the cash out that we've had, so there shouldn't be any other more cash impact. We still have the final assessments to be made regarding the goodwill. There had been some impairment there, and that was included in that figure, and then see how we could adjust the final figures. As I say, we're going to have visibility and transparency in the next one or two months. You were talking about the Repsol issue. Repsol, yes. Quite. Well, we've mentioned this on several occasions. That is the agreement with Repsol. Well, there has been no cash in yet.
The agreement with Repsol has to be validated and has to be approved, and that is supposed to be happening, if not next week, the week after that, and with the CNMC approval. Then after that, what we will do, we will consolidate or account the operation. As Patricia pointed out, we started off with them while we shared lifetime value. We're going to receive little initial cash inflow and upfront. This will have a certain amount of impact that we can't yet fully measure. We have to evaluate this together with the amortization of the catchment costs for those customers. In any case, we believe that we have a completely competitive and strategic offer, and we have to go back to the path of growth again this year.
Yes, well, this has to do with what you said about consolidating. Yes, we are going to continue with the consolidation because we are sharing our customer management and we have shared margins, and we're going to continue with those activities and we're going to consolidate. But it's not going to be the entire invoice, only that particular item. I think, well, there's an issue here that has to do with energy. Let's say that this is what has to do with all of those asset elements that we had in the BAS subsidiary. I'm not sure if it's the chairman or the CEO, but what is going to happen is very simple, but we don't know when.
The idea is that in this strategic orientation of Dominion in terms of sustainability and the energy transition and so on, and according to what Mikel said with in relation to management actions, the roadmap as regards incorporating VAS or having them in the perimeter has been tabled. It's a reality, and we're currently looking to the stages and when we're going to do this. I don't think that this will have an impact on our financial statements, but we are looking into when we are going to take that step. We are focused on the sustainable world and the green world, and we also are focused on resilience and recurrences. We have to recover businesses with that pay lots, that consider infrastructure is very important, and we consider that a positive and very strategic move for the company right now.
Okay, thank you very much for the information.
Thank you.
Okay, well, here we have some questions. Alberto Garrido says that as it seems that the interest rate increase is going to have an impact on your bottom line, are you considering reducing your gross debt?
Well, it is true that you know that with all of this proliferation of different landmarks, we have about EUR 100 million in debt, because it's true that our net debt was maintained constant with a positive cash position. As Patricia pointed out before, we don't stand at the same levels we had when the semester closed. Although, yes, in the past, yes, we could have that cash that was not being remunerated. But now, although it's not being remunerated, the cost of liabilities has been increased. We're gonna have to do some optimization there.
Obviously, it's we need to have a much better financial discipline, and we'll do that. As we see the business now, if what we see is that we invest, and we see projects and investments whose ROA exceed the cost of debt and of the gross debt, I think it would also be possible to maintain that gross debt and for it to stand at those levels or even increase it. Everything has to do with visualizing suitable investment options and that returns be above the cost of leverage, of course.
Juan Peña from GVC Gaesco asked about the company that we have acquired. Could you give us some more information, please? Quantitative information on this company.
This is a small company, and they are going to provide us with specific expertise in environmental issues that have to do with oil and gas in Colombia. They have a turnover range between EUR 8 million and EUR 10 million, and these EBITDA are approximately 10%. I think that these are your typical companies that we'd like with. There were three managers, and they're going to stay with us, and we have purchased the majority of shares. What we're gonna do now is unite our forces so that we can bring together all of our synergies. Their contribution is gonna be very important. They know what's going on in the country. We are going to provide our digitization capability. We should reach 3x the levels of EBITDA by year three.
Well, if you have any further questions, we have another one from Juan Ogger, who's asking us about renewables and how many megawatts are we going to have in operation by the end of 2022 or 2023, and what about the CapEx of this division and the situation of the shareholder base.
Well, we are building 350 MW in the Dominican Republic. Here, what I'm saying is that we will have to give you more information and more disclosures. Well, in relation to what I mentioned before, we'll try to give you as much information as we possibly can. We are making progress in this 360 concept that we want to apply to the renewables division.
We will, we'll take further steps, of course, but the portfolio we are constructing and developing in Italy is very interesting and very healthy and very attractive too, because we're seeing things in different countries that are happening. These are things that you will see, and we will be telling you about this too. In any case, this is a division where we believe that we have not yet been able to show the value that we believe we have, and little by little, we will be giving you more and more disclosures. I think that you were asking us about the new buyback, if I'm not mistaken. Is that true?
Yes.
Well, okay.
Well, now we're going to cancel those 8 million shares.
Well, yes. Basically, the board meeting took place yesterday, and we finished, and we're going to amortize our own shares. We will have bought back 10%, as Patricia Berjón has just mentioned, and we'll be opening up a new buyback, although it's not gonna be 5%, it's gonna be less than that. We do want to focus a little bit on the target of furthering the participation of our directors and executives in relation to the company's capital. We'll let you know more about this. We want to be much more creative and participative, and we believe that it's the right moment to get this done.
Okay, we have Carlos Cerio.
Yes. Well, yes. Thank you very much. Can you hear me now?
Yes. Okay.
Well, I have another question, because what I understand that once the agreement with Repsol is up and running, the way you report the figures of that business is gonna change. Could you give us some references now or perhaps in the future with regard to the impact this is going to have on your figures? In other words, what is the current turnover of the business? What is the contribution margin like? And obviously, well, so that we can estimate what the impact of this new contract is gonna be like in the future.
Okay, Carlos. Well, what's going to happen is that the turnover of the B2C segment, we'll see that turnover is gonna be reduced. We will make a somewhat more detailed disclosure once the agreement is set into motion, but so that we can have some guidance on the current B2C figures. Let's say that what concerns energy has a weight of about 50%. Therefore, this turnover would no longer be in our accounts, but what we would include is the margin that we have for each one of these customers.
The figure we'd have in the contribution margin and turnover would be very similar with the operating costs, of course, and therefore the profile of the margin over sales of B2C, well, it could be expected to grow, of course. But what we really expect is a decline in the turnover figure, but not in the contribution margin, not in terms of absolute value.
We believe that in this operation, considering the nature of the agreement, we believe that in the next two years, it should make a contribution greater than what we already have. In other words, in the Smart House project, there would be no businesses where you are involved or that you're going to include. That is the total invoice that you send to the customer. Rather, what you would be doing is you'd just be saying transferring the part of your business or the part that has to do with your business, well, except for telecommunications, of course, where, yes, we would be registered or the invoice itself.
No, in any case, what we are saying, we're looking into this right now, and we'll see what the reporting looks like, and we'll give you more details in the future about what's going on.
Thank you very much.
Okay, there are no more questions, so we are gonna close the presentation here.
Thank you all very much for following this presentation. Thank you very much, and we'll see you at the next disclosure. Thank you very much.
Goodbye.