Earnings Call: Q2 2018

Jul 26, 2018

Good afternoon, and welcome to Ferrogl's conference call for the 2018 first half results. Ernesto Lopez, Ferrogl's CFO will conduct the call with a brief review of the main highlights followed by a Q And A session. Thank you, Ricardo, and welcome everybody to this conference call. Well, starting with the highlights of the first half, I have to start again with the fantastic growth of our infrastructure assets. We have better performance than what we expected a year ago when we had the Sintra Capital Market Day. And that is an important achievement. Mean, the traffic has increased across the board. And in our main total load assets, we have double digit EBITDA growth HISrow London Heathrow and 407 ETR, both of them include their dividends in this first half. Regarding construction and services, we are trading in line with expectations. The EBIT margin in construction is 1.9%. And services, of course, is impacted by the Birmingham provision in Amy and Australia at the end of the immigration contracts. But as we shall see along the presentation, the trend is clearly improving in line with what we were expecting. If we move to the next slide in the presentation, we have a glimpse at a proportional reporting The reason we do this is to show more of the proportion of economic performance that really the company is about, right? Because we have some very important infrastructure assets that are consolidated under the equity method. We would like to look at our proportional EBITDA. Excluding the Birmingham provision, we would have reached 1,000,000. So I mean, infrastructure is a very important component, 68% of the EBITDA contribution under this kind of methodology. Moving to the actual performance of the toll road division in the next slide. We have the title speeding up and clearly is what we are seeing. We are seeing solid financial results on a like for like basis recorded that on a statutory basis, last year, we had, Portuguese toll roads consolidated under global consolidation. We don't have them anymore. We sold part of that. And in the remainder, is under the equity method. Okay. So we look at the existing roads. There's a growing contribution from the USA. We have a higher dividends with the 407 sending $113,000,000 in euros to Fabial. And the rest of the toll road says 1,000,000. In terms of the the new openings and this is important because we are seeing a lot of growth. But now we are really happy to announce that in July, we had the opening of the NT35 West. This is a north south corridor in Fort Worth, connects with the NT12. And therefore, the connectivity of the NTA12 will improved. And this corridor has, had the fastest traffic recovery from the pre construction levels. Okay. And also you could imagine that drivers in the area have tested the other ones and now they would be comfortable using this NT35 West. In terms of, as I said, traffic across the board, we do see, I mean, we have with the growth all around in the note, you have the different toll roads and all of them are showing good performance. Moving to the next slide. Regarding the 407TR, you probably saw the already. So I would like to highlight some of the stuff going on. I mean, do you have the traffic performance even in an environment where oil prices are going up by 20% in the area in local currency. The revenues and EBITDA, as I said, in the introduction are growing at double digit and the traffic is, is increasing and the increasing 2.2% also with some higher triplets, of the region from an economic point of view, this is, clearly showing some tailwinds, right? Like, GDP is growing at 2.5 population is growing at 1.7%. Unemployment is just 1.6%, very low. Personal disposal income is up by 5.8% retail sales going up. Inflation also is going up more than last year. So all this is helping the growth of this fantastic asset. In terms of dividends, we see the growth profile in the right the bottom corner and you see that in the first half, SEK453 1,000,000 were distributed to financial there's 100%. Okay. So moving to the next slide, the headline figures of the managed lanes and T and LPGA, again, double digit in revenues and EBITDA. I mean, you look at the LPGA growing more than 24 in revenues and EBITDA more than 25% and traffic more than 8% and the NTE is showing also outstanding figures to 18% in revenues, 19.8% in EBITDA and 5.9% in roughly. Okay. So, this, looks good and part of the explanation is also that the area is having an excellent performance. So in the next slide, Slide number 8, we see the macroeconomic indicators in the area. And then you can see that in of non farm employment year on year, the metropolitan area of Dallas stands out to the rest of the U. S. Also, as you look in the population growth and it's one point 6%. This is not especially remarkable against the rest of the U. S, but really the economic performance is. Okay. So, moving on to the next slide from the Managed the new managed lane open, we look at the area in a little bit more detail, right? So we have a map here where you see the, 820 is what we call NT12, what is the the managed lanes along the eight and D. And you see the NTE35 West that runs north south from the Alliance area with AIS Airport to Downtown Fort Worth. The Alliance area is quite interesting because it keeps expanding. You logistics centers there from a very landmark companies like Amazon, FedEx, after Walmart and the rest. And the residential development that is taking place in that area, it's also important and should increase the catchment of that of that corridor. Regarding our participation in that project is almost 64%. 53.67 percent. The length is 10.2 miles and the remaining concession period is 43 years with a total investment of point 3,000,000,000. So another connection to this network in Dallas forward and it's important because we seeing that the more of these managed lanes that get connected, the better traffic flow, the more management capture rate that we can have, right? So, moving on to another division, airports. You probably saw the results from a Heathrow. We start with that. And the Heathrow posting record traffic pretty much every month. And the the satisfaction keeps being very high. This is the I mean, we are reaping the benefits of all therefore that we show in the next slide. In terms of revenues, it's at 2.3% growth. It should be higher. The reason I said it should be higher is because he's always providing incentives to airlines in terms of lower tires for a cleaner and quieter aircraft. And this implies a the dilution that can be recovered in approximately 2 years, right? And the retail income is performing well and helping 2.3% and growth in revenues. The reason why EBITDA is that touch lower is due to a more cost into winter maintenance. I mean, if you remember the winter in the UK has been quite a harsh this year and this affected operational expenses, but the performance of the airport was outstanding in that season with other airports closing and the Heathrow really maintaining a very high level of satisfaction. And in terms of, and traffic by area, Hithrow is very well spread across the different regions showing that there's demand to use Heathrow from all over the world. And regarding the AGS, we see a good performance in EBITDA growth, despite the traffic being, attached down and the reason is that touchdown is indeed due to some very bad weather in Scotland with a couple of days closing of Glasgow and some working this in traffic from some of the low cost airlines. But despite that, despite that, we saw the growth in EBITDA held by the, initiatives in tail spending. If we move on to the next slide, we see the effort that has gone through Heathrow, making it an outstanding, airport towards So with the passenger in mind in terms of satisfaction and renewal of the airport, right? Just look at the overall score since 2007 when it was at 3.43 has gone up to 4.16 in 2017 and basically rallying against competitors in Europe. In terms of punctuality, see, regarding of, I mean, the airport being close to capacity in terms of air traffic moves, now we have 83% of the flights, departing within 15 minutes of schedule, whereas in 2017, it was only 63% and the growth in terms of traffic has been phenomenal. Also, security, the rating by passengers going through security rate in need as greater excellence has gone from only 44% in 2007 to 74% in 20 17. And also very important, one of the, HSA objectives is to have clients satisfied and traveling with their Bags, something that in 2007, there was a 40 Bags misconnected per 1000. Now it's only 11 and working always on this. Okay. So, all these great effort. I mean, now faces the fact of limited capacity and a lot of demand to use the airport. Right? So it's really a great news that the UK Parliament approved the 3rd runway. It's a that it still has a lot to go. But when we have some of the data around this project in this slide is 3.5 Kilometers Long, the new runway in Northwest of the airport. The total right movement capacity that, Heathrow would have would be 740,000, achieving 130,000,000 passengers. And then very importantly, adding jobs to the UK 180,000 and economic benefits the U. K, we have always to remind that he's always a gateway, the most important gateway in terms of cargo traffic in the countries. Okay. So, moving now from infrastructure to construction and services, we get into construction. Construction is performing in line with expectations. It's true that margin Poland are tighter than what was foreseen some months ago. And the some increase in prices in raw materials and labor and then in subcontract across the country, right? So, it has affected the whole sector. As always, Buddhist tends to navigate in a better position but is basically suffering this effect. And that impacts the kind of expectation that we to the lower part of what we expected. Percent. And of course, as part of this margin will be achieved, if we release provisions from works that are lies. I mean, we just announced that the NT35 West has been opened by Sintra and its partners. Will that construction has finalized. We wait for some months and see if we can release provisions here. That's an example and the, I mean, just anticipating one of the questions that you may have in this first half in terms of a provision release. Well, we have a net provision charge. We have $4,000,000 of net provision charges of the provision release. But of course, at the end of the year, we expect to provision release and that is what is supporting margins of an otherwise tight margin division, according to the environment in the construction sector. Okay. So moving to to services. We review the performance that is in line and with the that we provided, and looking into Amy, Ex Birmingham has the margin in the first half in terms of EBITDA, it was 1.5%. But there was some one offs affecting the EBITDA. Otherwise, the margin would have been 3 point on. So which were the effects that affected the performance? Well, one of them was the of the CapEx phase in Sheffield that took an important amount of the million that is the sum of all this one offs. And then the good thing is that we happy to say that the CapEx phase has been signed off and therefore we move into another phase and these risks the project substantially. Also, we had milk and beans that was, is energy from waste that was in the construction phase. We had also to have some over expenditure there, but we are happy to say that the plant is up and running. And also that means the risking of the asset. And the remainder of this kind of one offs was a harder we said before, we see so harder winter than the expected. And therefore, we had more maintenance costs due to, to these weather effects. Okay. So, it would have been 3.1% otherwise, so that means that we are in track for the remainder of the year. And something that probably will be consolidated in the second half is also on business with a carillion rail. That is the, we have some joint ventures with them. So I competition, European competition approves, we should be getting more business that should add to the profitability have always to remind that the performance of the consulting and well division of Birmingham is the most outstanding, it usually has double digit margins. And at capabilities, right? So the evolution of Aimi will keep improving as we leave, let's say infrastructure maintenance that are making some losses or facility maintenance and that is making some losses and we have more proportion the good margin stuff. Regarding the provision that was commented before, but it's worth talking a little bit about it in this first half results. We recorded a 2 1,000,000 provision to 1,000,000. And it's pretty technical in the sense that part of the is related to CapEx that was expected in the life cycle phase. The client has instructed for it to happen in are in the 1st phase, the CapEx phase before it is signed off. And that means that we have to take a hit because there's no revenues in that part, but that doesn't mean that there's no economic substance in the contract to compensate for that. Another part of the provision is related to aggressive penalties being charged by the client, of course, these charges would be challenge, right? So, I mean, we basically have what we think is a prudent provision and is technical in part in nature. And then also it's worth mentioning that Amy and the services division are doing some noncore disposals to help generate cash. Amy is advancing on some PFI participation divestments and this should help address the cash needs it's important that each business of the division is capable of, of basically being self sustainable, right? In terms of other stuff that is going on in services with the good margins in Spain, is we have some additional dividends from some services concessions in Spain. We'll talk more about later with the cash review, but around 1,000,000 was cashed in with dividends from this. And there was also that is a postal of a more participation in a renewal fund in Australia. So services business keeps doing some of these minor divestments in non core business adding to the part of the business has more margin like a consulting and rail and other achievement was the Wills And Borders project with Kiolis with Amy doing the more of the part in the infrastructure development of the rail network in Wells. So, doing more of that, extracting more cash from some disposals. The focus is clear on improving margins a long time and the regarding the rest of the comparison vis a vis last year. I would also like to remind you that last year, we had the immigration contract in Australia that is no longer there. But as I said, the division is trading along what we expected for the high and working more to improve flow and net debt evolution, we closed the first half with a net cash position of EUR 906,000,000. And the main drivers here are more dividends and capital distributions from projects, 1,000,000 compared to 1,000,000 last year. And here we see the 130 from the 407, 87 from airports and 81,000,000 from services that I mentioned before, right? So we are working on this to we get a little bit more for the remainder of the year. Then we also had more investments this year, operational investments, 135 versus 126. And we fewer divestments, right? Last year, remember that we had the sale of North 1% of North Litol and also a very small stake in Boudemex 3.9%. In terms of shareholder remuneration, it's a little higher has been accelerating more than having a quantum change is having more at the beginning of the year. And then last, the very important working capital evolution is similar to last year, okay? So we have 1,000,000 consumption a little bit better than last year. Okay. So just before getting into the Q And A session, just having a summary of what we think is the most outstanding with other parts and the strong performance of the infrastructure assets. It's not that they are performing well, they're performing better than we expected. And the growing dividends is also something that is expected to keep going in the future. The third one way approval is something very important. Still, there's a long way to go, but it's a it's a pretty that is very much needed for the whole of the UK transportation. And then we have last but not least in that spot, the full opening of the NT 35 West another part of that network of managed lanes in Dallas Fort Worth. Okay. And then construction and services is spec it to improve margins at year end. I've talked about that in the previous slides and looking forward we will keep on looking to mitigate risks in contracting to allocate capital more focused on infrastructure mainly in the U. S. And 2019, 2020, we should be seeing dividends from NT and LBJ. Okay. So no more, let's say, a strategic discussion at this point in time, we think now we can open the floor for the Q your question please ensure your phone is unmuted locally. Our first question on the line today comes from Guy Mackenzie from Credit Suisse. Please go ahead. Hi, good evening. Thanks for taking my questions. I have 3. Firstly, on Heathrow, You discussed the 3rd runway. I was just wondering if you can give us any update on the process from here and specifically any update on where you are and what the timeline is with the CAA in terms of agreeing your returns and remuneration for that project? Second question is on Amy. I mean, obviously, there's quite a mix of businesses and quite a mix of contracts within that segment. You talked about allowing loss making contracts to roll off, but I'm wondering whether you'd look at potentially crystallizing some of the value through sales of assets with anatomy. Specifically, you mentioned your Milton Keynes energy from waste plant. I guess you had Allerton Park, which came online this year as well. We've seen some very high multiples on both the listed stocks of energy from waste and also on recent transactions. Just wondering if you've looked potential sales of those or other assets within that business. A final question, I just have to ask on constructions. I guess the margins there guidance was 3% to 3.5%. It's now about 3% and you say it's mainly on provision releases in Q4. Which correct me if I'm wrong, but it doesn't seem to be a sustainable driver of higher margins or even a cash improvement there. I'm just wondering if that implies that if there is no change in the current environment to your construction margins in 20 18 could in fact be lower or if you think 2018 will still be the trough. And if you're able to say anything on the contribution of the I-sixty six project over the back end of this year towards those margins. That would be helpful as well. Thanks very much. So I'll I think for the sake of time, I can take the 3 of them I have with me the CFOs of the divisions, but will take the 3 of them. I mean, regarding the 3rd run rate and the CAA, we are still some time away from how in the final view from the CIA on returns. But of course, they've been exchanging drafts and this could be going back and forth for a good part of 2019 as well. So maybe end of 2019, maybe beginning of 20 we would have more clarity even though there will be some indication in the different drops that could be exchanged initially. There's still a lot of work, also a lot of work in design and finalization of CapEx, also his to finalize the business plan. So we are still a good time away even though there will be, conceptual discussion some papers shared publicly shared by the CAA, right? But probably the expectation is more for end of 2019. And regarding Amy, you're right about what you're saying about transactions happening. The only thing I can comment now is about some PFI disposals going on. I cannot make any further comment at this point in time. And then regarding what you said about the margins, you're right, that the environment in construction is tight. You talked about the I-sixty six being a project that could be better and you're right, but in 2019, the I-sixty six, given the way we account for things, won't be showing margins much better than those, right? So, we cannot make much comment about 2019 at the the moment and only that the situation is that. So I prefer to have low expectations at the moment. Keep you updating if things change. Okay. Understood. Did you previously say and I may be wrong, but did you previously say that margins in 2019 and construction should be at least as good as they are in 2018 or is that not necessarily the case? They could be similar, I guess, but we have of the international projects improving, but we see pressure in Poland, right? So unless in Poland the overall sector, there's some sort of price review that has not been done in the past, but in other countries has happened in this kind of situation. If something that doesn't happen. The Poland will have a tighter in Nigeria, right? So, and the combination of is difficult to say that they could be much different from today. Understood. Thank you. Thank you, guys. Next question please. Our next question today comes from Bruno Silver from Caixabank. Please go ahead. Hi, everyone. I have three questions and actually starting with a follow-up on the guidance and services and construction. In regarding Amy, your guidance of 2% to 3% EBITDA margin for the full year of 2018 of this year that you said in the in the conference call 2 quarters ago. Were you already counting on this one off from Sheffield and Milton King's? And, and and the, if not, I just wonder if something is going better than than expected at that time. If you could confirm that as well as whether you'll be closer to 2 or 3% this year in Amy. And then on construction, I think it would be useful to understand the underlying trends and not so much on the effect with provision reversals. So if you could clarify in this 3% full year 2018 EBIT margin for construction is what would be and that component. So what would be the guidance of the marginex revision reversals. And finally, on ETF-seven, as out that have pending regarding the net debt evolution quarter on quarter. I think in local currency, it's deteriorating around 500,000,000 Canadian dollars. But when we look at cash flow and dividends paid, it only suggests a deviation or an increase in in that of around 100,000,000 Canadian dollars. If you could clarify, if there has been any change in in accounting or something like that. I'd appreciate it. Thank you very much. Okay. Well, the last question I didn't get properly. It's a question that we can provide clarity probably later on. I mean, if you could rephrase it, that would be helpful, but I think this question has been at some time before we can provide it. But if you could refresh, that would be great. Let me get the first two and then you can rephrase the last one. I mean, regarding the EBITDA margin guidance for Amy, no, this one offs were not considered at the time, but it's also true that we were expecting other things that could happen. And therefore, we are comfortable. So our expectation probably was higher than the guidance already. And then not incorporated in the guidance were the a new business that we will be incorporated from the Caribbean rate, right? So Amy should be okay, Hey. Regarding the construction division, we don't provide the breakdown between underlying margin and the provision released. But as we always say, I mean, the market, the current production is between 1% and 4%. We should always be moving along those margins. Maybe now are more in the low part of the the range as you see now in our accounts. And the thing is if we can get in the production and running some of the stuff that is with margins more in the high part of the market, okay? So, that will be happening in a long time. But as I said before, we will also see pressure in Poland. It's difficult to see very different margins and we prefer to update as things evolve in the future. Okay. So regarding the Fosun, could you repeat the question? I couldn't get it properly. Sure. But just just before that, if I may, so, did I understand correctly that, in Amy, the the guidance of 2, 3% should actually be closer to 2% considering, the one off, that you accounted this quarter. No. No. No. No. No. No. Regarding that, what I said is that we were not counting on these one offs. We have 1.5, we should have had 3 point 1, but those are off for the remainder of the year, right? So we were expecting higher margins in the remainder of the year. And then additionally, we have a new business that should help. Okay. So all in all, no, we should be along the range, but not necessarily at the bottom. It could be better. Sure. Sure. The 407 net debt, versus March, increased by around 500,000,000 Canadian dollars. But when I look at the operating cash flow, actually at the cash flow statement and the the generation of cash has been negative by around 100,000,000 Canadian dollars. So there is a gap of roughly 400,000,000 Canadian dollar that I cannot really explain. So I am not sure if there has been any change in accounting, or something like that that could have justified this net debt deterioration. In the quarter? Thank you. Okay. We provide that information. There's one things that out of mind could be helping there that is a accrual of inflation on the inflation linked there, that kind of thing, but we'll provide more detail when we get, we'll see we can get a little bit more in the conference call and we'll do that in writing. Okay. Thank you. Our next question today comes from Martin Wojtow from Bank of America Merrill Lynch. Please go ahead. Yes. Good evening. Thank you for taking my questions. Number 1 is just coming back on the UK services. Can you remind us, I mean, the Birmingham contract that we'll discuss extensively the beginning of the year, is it what was the contribution to EBITDA? Is it still diluting your EBITDA a little bit in the 2nd quarter? And what are the next steps? I mean, will that contract continue? It is a very long term contract, or do you see any any scope to potentially terminate that contract at some point? And question number 2, can you remind us what is the balance of factoring in company at the end Okay. So, regarding the EBITDA booming them, we have applied part of the provision for sorry, £45,000,000 in the first half of the year, okay? So that the provision has been applied. It has had no impact on the PD apart from the hit of the provision. Okay. The other question that was regarding the amount of factoring in the in the balance sheet, we'll be gathering that date and providing it either later in the call or in writing, but we're kind of into that. Our next question today comes from Vittorio Carelli from Santander. Please go ahead. Hi, good evening. Thank you for receiving my question. 1, regarding the cash position at Toldinco, you have around 1,000,000. So which is the pro form a debt excluding the 500 1,000,000 of the hybrid bond and the Poland gas position. And then secondly about the net working capital, which shows a similar situation as of the first half twenty seventeen. But then at the end of last year, you recovered some you had some prepayment that improved the situation. Should we expect the same for the end of this year in order to improve also the cash at the the holding call in Farovian. The second question is related to the dividends from Heathrow. We had last year £175,000,000 more or less coming extraordinary. Again, should we expect additional extraordinary dividends this year in the second half from Heathrow. And the last question is on West Connect. We think that Transurban is now under investigation, so probably could not be allowed to beat would you come back and put a bid on the on these important assets or you are completely out of the process? Thank you. Thanks, Victoria. Okay. Regarding the net cash position, yes, in the 906, we are considering the hybrid as equity as per the IAS be accounting, right? If we take out that, it would be obviously 1000000. Regarding recovery, you rightly pointed to, some advanced payments in option due to the financial closing of, financing of the I-sixty six and the Denver airport. We don't have any project like that expected this year in terms of financial closing, right? So improving the gap should help some of the divestments of a small non cost and maybe other dividends from some concessions, but I cannot provide a guidance on that at this, at this point in time. Regarding the Heathrow dividend, also on either Heathrow nor the shareholders are providing any guidance at the moment. At the end of the year, we'll review to see the performance. Of course, the inflation seems to be tailwind in that regard, but we cannot comment until the end of, of the year. Okay. So regarding the WestConnex situation. I will pass that question to Paco, the CFO from Simpler. And before handing that to him, I would just like to mention that the previous question regarding the level of factoring in June. In June, we have 55 1,000,000 of factoring. At the end of the year 2017, it was 88. So there has been a net reduction of factoring and that has hit, of course, the working capital evolution. So, Paco, you can take the. Yeah, well, it's quite simple. Unfortunately, as it's customary of this type of projects, we are under confidentiality agreement and we cannot disclose anything in relation to this project. So I'm sorry. Confidentialist agreement is related to the main terms of the processes, just asking whether you are still in willing to perform a bit or not? Even that Victoria is subject to confidentiality given the NDA sign. So we cannot comment. I'm sorry. Our next question today comes from Stephanie Duff from RBC. Please go ahead. Hi, good afternoon. I have three questions, please. The first one is on the reason for the pressure on Polish margins in construction. Could you please specify the reasons in Poland are really specific to that market or if those reasons could spread in other markets in Europe. Tracting businesses overall. You mentioned earlier this year that you were reviewing all your businesses and looking at potentially restructuring. Could you please tell us how much progress you have made on that front? And finally, could you please confirm the Australia services EBITDA margins for the full year is still 3% to 4%? And as you gave a bit more insight on where you expected construction and UK services to finish. Could you maybe please do the same for Australia? Thank you very much. Well, thanks for the question. I will pass to Heather the one regarding the cost Poland. Regarding Europe, in Spain, we are not seeing that kind of pressure on activities is is not very high. So I will pass Javier to the for the Polish 1. Before I do that, you were asking about a strategic analysis. I cannot make any comment at this in time beyond what I mentioned of some small and divestitures. Regarding the margins in the earlier just the 3 4% is confirmed, but we cannot provide any more detail guidance, well, we are not willing to do that at this point in time. We keep improving the businesses. We prefer not to give any specific number at this point in time, but the guidance is confirmed. So, Javier, if you could take the Polish cost? Yes, of course, due to the high activity, the economies, I mean, in civil wars, mainly well, in overall construction activity in Poland as Ernesto said, there has been an evolution of an increase evolution of cost in raw material labor and subcontractor that so far is acting in the margin, as Ernesto said, answering your question is an overall contest for all the construction companies and the what they are is what they are publishing quarter by quarter. How long do you see those features with pressure on the margin is important? Is it very short term and should the markets become, or come back to its margins soon? Or do you see pressure for the coming years? Thank you. Well, some things that are happening that I can comment maybe is that some works that have been awarded, they don't get started because of the change in prices, right? So some bids come to the market and all the beaters are above the offer price. So, it's an overall situation that should be adjusting, right? It should adjust and not keep there's no volume. Regarding the margins of the past, usually those happens, when there's countercyclical convenience. So, after when the you are basically close to the trough of bidding, maybe you can get better margins with less participants in the market, right? So all that has to do with the cycle. But in terms of pressure, we don't see any snow volume. We see tighter measures are kind of a slow down and then we hand it over to Javier again. Even with the consideration that the consideration and data we are giving, the truth is that the 4% of volume is very above 1 and clearly the leading one in Poland nowadays. Okay, thank you. Our next question today comes from Guillermo Fernandez from Kepler. Please go ahead. Good evening, everyone. It's Guillermo. Most of my questions have been already answered, but I still have one regarding the contract you are taking over from Carillan. Could you confirm if it's going to imply a cash outflow in terms of like if you were buying those contracts? And if any and how much would it be and when should we expect that? That's the only one pending. Thank you. Hello, this is Fernando CFO services. Well, the contract will be new trial and confirm the cash point point of view because the inflow of Video will be higher than the payment. So for Euro projections is neutral. We have a follow-up question from Vittorio Carelli. Please go ahead. Budiment, and excluding also the hybrid, which is a net cash at FerrovialESA. And the second one is, can you explain why you have so higher sugar remuneration so far. This is something that we realized also in the first quarter, if I'm not wrong. So just add more color on this. Maybe I'm missing anything here. Thank you. Okay. No, the higher remuneration, I'll take the last one first, comes from basically the purchase of shares, you know, that remuneration is a combination of dividend and buyback of shares. We have done more buyback of, of shares at this level, right? That's the reason why we have more cash outflow for for shareholders, right? And regarding before, I get you the number on, on the boutiques that we are getting the 1 that you that you asked. And I also have an answer for a previous question that the movement in the first half of twenty eighteen is $276,000,000 of the 500 mentioned. So we'll have a clarification of that in detail later on, right, probably from the report, the numbers, I mean, cut by the analyst were not the correct ones. We will be sending those. And then let me try and get the number on Okay, Victor. We'll provide that later on comfortly in the We currently have no further questions on the phone line, so I'll hand back to the team Okay. Well, thank you all for the call. So we have pending the net position of budimax that is it's coming. So before I close the call, I will be providing that. Okay. So the net cash position in the well, the cash Ludimax is 1,000,000 cash. And then in terms of off debt, it should be very very small, okay? So just get the EUR 151,000,000 as the net cash position, you will have to subtract that maybe not fully and maybe just proportionally, okay. Okay. Well, thank you. Thank you all for the call and have a good break. If you can get it and see you after that. Thank you.