Sacyr, S.A. (BME:SCYR)

Investor Day 2021

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Oct 7, 2021

With more than 20 years of international experience under our belt, Satyr Konthaciones is the 4th largest developer of greenfield projects globally. Our projects have an average remaining life of 25 years. Leonis is the engine of growth of Sathya Group. We have developed more than 100 highly complex projects and we currently manage a diversified a portfolio of more than 65 contracts, which serve as an added value for our employees, investors and stakeholders. We optimize the value of our P3 assets throughout their entire lifecycle by vertically integrating our activity in concert with our other 2 divisions, services and construction and engineering. We bet on best quality standards, especially when it comes to social infrastructures. Our hospitals are internationally recognized and provide world class healthcare services with 2,700 beds in 4 different countries. We design innovative and sustainable solutions that connect people in a safe, fast, and efficient way, be it by road, railroad, or air. We believe that a better world is possible. This is why we work on different green projects to reduce our carbon footprint. End to end water cycle management, renewable energies, efficient waste management. At Sathya, we strengthen our social and environmental commitment in all our assets in connection with our strategic goals. Developing infrastructure to improve lives. Good morning, ladies and gentlemen. Manuel Manrique, SACIB Chairman and CEO. I would like to welcome you all. We would like to extend our deepest appreciation for joining us today. So welcome to this Investor Day. The purpose of this presentation is to convey to all of you that we are certain that this is the right time to invest in Sasir because the share price does not actually reflect the company's actual value. Through different presentations we will walk you through today, we would like to share with you the 2 cornerstones supporting our strategy. First off, we have a full commitment to reducing our corporate debt, our recourse debt drastically to reach a zero level by 2025. And we will do so by keeping our investment pace in the amount of 150,000,000 per year, that is to say, during the strategic plan, which is 750,000,000, taking into account our business cash flows and our dividend distribution coming from concessions after, of course, honoring our investment obligations, including some asset rotation and divestments using matured and nonstrategic assets depending on market conditions at each point in time. To this end, We will assess our Sasir Concepciones asset in 2019. Perhaps you attended our show at that point. We were at 2,800,000,000. So due to the maturity of these assets and due to these new awards, we have reached this amount. So like in 2019, we believe that this is a sound valuation, a prudent valuation. It's safe. We are certain about it. And there's proof of it. In 2019, our asset valuation, Guadalseza, was valued at €200,000,000 And 4 months later, we divested in that company During the pandemic, and this should be highlighted, and we saw the company 10% higher than this valuation with very significant surplus gains. So throughout This Investor Day, we will provide you with some business model details. We will focus on concessions And we will also talk about sustainability, which is integrated into our model. Our key assets, mainly the United States, in Chile, Colombia and Italy. By 2022, many of such assets will become operational. As a result, we will be driving our business further. This road map we will walk you through today will be presented by each of my colleagues who are experts of On the details of these projects. So the first speaker will be Carlos Mihangos, CFO Followed by Rafael Gomez Del Rio, Sazer Concepciones' CEO next, Rodrigo Rodrigo Jimenez Alfaro, Sasir Concepciones' CFO Ms. Martha Hill, who is the General Manager of Strategy, Innovation and Sustainability. And finally, Maria Munoz, the Head of M and As of the company. To close off this event, I will draw some conclusions about, well, the key messages of this presentation, and we will have a Q and A session to answer any questions you may have. So Good morning, everybody. Thank you, Mr. Chairman. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] First, some practical announcements. We have already sent the Information about this event to the Spanish Markets Securities Commission, and all the information has already been posted to our website. We will walk you through today's agenda very quickly. First of all, we are going to talk about our strategy and key financials. Next, the CEO of Sasir Concepciones will speak about Sasir Concepciones today. He will talk about its competitive advantage. We will also talk about ESG criteria being integrated into all of the group's activities. Next, we will analyze assets in Chile, Italy and Colombia, and we will talk about Sasir Concepciones' valuation. And the of [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] The Chairman will draw some conclusions at the end before the Q and A session. Okay. Having said that, let us analyze what SACIR is today. SACIR is a global group that develops infrastructure that operates in many countries. Its core business is to create value through concessions. Concessions have an investment component for a 2 or 5 year period of and then a 25, 30 year operation term. This enables us to create steady cash flow with limited demand risk. So we're talking about cash flows that can be easily forecasted into the future. Today, 80% of the group's EBITDA comes from concessions. Where are we present? Where we operate? If you take a look at this map, We operate in Australia, in the United States, in Chile, Colombia, Spain, U. K, Italy and Canada. These are our top priority countries even though we are also present in some others. In Europe, there are other target markets such as Portugal, Ireland of Nordic countries and in Latin America, Peru and Brazil. The purpose of the company at any rate is to Have 1 third of our activities in Europe, 1 third in Latin America and 1 third in English speaking countries by 2025. Let us talk about the pillars supporting SASI's strategy. First of all, we mean to reduce our net recourse debt. As the Chairman said, we want to make it cut down to 0 At the end of the cycle, which will be necessary in order to manage the seasonality of other concession business. We keep a strong focus on the concessional business that will already contribute EUR 1,000,000,000 during the 2021, 2025 term. We also want to keep a stable shareholder remuneration. We started with this in 2018, and it's a key priority for us to keep this 5 percent annual shareholder remuneration. We also want to simplify our balance sheet by reducing the group's stake in Repsol from 8% to 3% in 2021. And we have already embedded a sustainability concept and ESG criteria into the company's activities. 1 of the main rating firms has rated us as the 1st company in this area in Spain and the 5th in the world. So there are 3 divisions in the group. First of all, Sasir Concessionis is the driving engine of the group. Afterwards, we will provide some additional details about Sasir Concessionis, natural concessions and 16% coming from water, waste and energy. Therefore, we reached 16% to 20% IRR. Sasir Concessionis has been also awarded many projects. About 2 or 3 projects are awarded to the company every year and distribution amounts to BRL200 1,000,000 per year. So Safia Concepciones is engaged in infrastructure projects, including motor waste, hospitals of or waste treatment plants or water treatment plants, desalination plants, among others. We have a new green business line in place that brings together water, waste and renewable energies. And its aim is to focus on English speaking markets. The other two divisions include Ingeneria of and infrastructures. Here, we are talking about an EBITDA of 5% to 6%. This is due to two main reasons: more than 50%, nearly of 50% of contracts are awarded to Safir Concepciones. That way we can optimize our construction processes. And on the other hand, we control risk throughout project management very thoroughly. So civil engineering projects are cut out by the company, for example, building motorways, dams, etcetera, buildings, football stadiums, sports stadiums, hospitals and any other manufacturing plants, waste treatment plants, oil and gas plants, etcetera. This company has a diversified presence in Europe, in English speaking countries and in Latin America. The 3rd the Crops division is services that also reports a stable EBITDA margin between 8% to 9%. This company continues to focus on profitability. They are involved in the maintenance of green areas, motorway maintenance, which is also important for Sasir Concessionis and Facility Management. They also operating hospitals. So the focus here is to expand further in those countries where Sasir Concepciones is already operational. Let us take a look at the group's key financials. From a revenue perspective, the number one contributing activity is engineering that provides more than 50%, twenty eight of Percent comes from concessions and 20% comes from services. If we analyze EBITDA in detail, there are some concessional assets in all three divisions. Therefore, from in 2020, 80% of euros 724,000,000 comes from Sathir Concepciones, euros 188,000,000 comes from the infrastructure division. This corresponds to the PD Montana asset. This is recognized in the Engineering Division Accounting Records, but it's managed by concessions. But next year will be integrated into their concessions accounting records, something we have services. As for the backlog, as you can see, nearly 80% comes from Societe Concessiones, 14% comes from the Engineering division and 7% comes from the Services division. If we now take a look at the the business division. If we now take a look at the group's key financials over the past years taking into account their 20 fifteen-twenty 20 plan. And going forward, from a revenue growth perspective, we climbed from 2.718 of 24.548 in 2020. By 2025, we want 24.5.5. This is Slider growth because we don't want to grow in terms of size, but rather we want to grow in terms of profitability, as you can see in the next graph. As for EBITDA, we went from 23920 of 2020. We want to reach 1,200,000,000 yen in 2025, and this is connected to the concessional business. We reported 26% of EBITDA in 2014, 78% in 2020, and we mean to reach 85% in 20 25%. In 2025, you can see that we went from 43,000,000 in 2014 to of EUR545,000,000 in 2020. And by 2025, we are going to twofold our operating cash flow. This is proportional to our net debt reduction. We have EUR 5,100,000,000 in 2014. Last year, EUR 836,000,000,000 And we want to reach 100 by 2025 in order to manage seasonality. Okay. What about Concepciones? It contributes dividend distribution in the amount of BRL 1,000,000,000 in this 5 year term, But we have committed more than BRL 480,000,000 in terms of equity in order to develop our projects, those that are already part of our backlog of which are pending implementation in the next 5 years. How does the group create or generate cash flow. We obtained cash flow from 2 sources. On the one hand, the concession business. 1 is concession assets of payback any financing. What we are talking about, BRL 1,000,000,000 in the past BRL 5.480 of committed equity. Therefore, we have a cash flow of more than of 500,000,000 coming from concessions. On the other hand, we have recourse activities, mainly engineer and infrastructure or services. They provide $70,000,000 in cash flows after investments are repaid, totaling 350,000,000 during a 5 year term, the interest which will come down as the group's leveraging comes down will amount JPY 150,000,000. Therefore, we'll be left with a cash flow in the amount of JPY 200,000,000. So all in all, the group will have an FCF in the amount of JPY 7 R35,000,000 for the next 5 year term. These funds will be allocated as follows: to reduce the company's recourse debt, but also of [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] In order to make concessiones grow further, we intend to invest more than RMB 750,000,000 and it will also be used in order to provide a sound shareholder remuneration. In order to develop or fulfill all these three targets, we will have to do some asset rotation Involving non strategic assets. Okay. So what about market capitalization? From the cash flow generation perspective, we're going to have more than EUR 1,200,000,000 before capital contributions, accounting for 95% of capitalization at September 2021. If we of SoftBank committed equity. We obtained this 750,000,000, which is more than twice SASI's market utilization at present. So today, Safia is a unique investment opportunity for different reasons. 1st of all, because it has a business model that is focused on a concession driven value creation approach. Concessions already contribute 80% of Societe's EBITA, and we expect to reach 85% in 2025. We have also proven to be a very a resilient company during the pandemic. Our figures have continued to grow despite of the complex scenario. We have a low demand risk this project portfolio, and therefore, we can generate stable cash flows. Sasir Concepciones main assets or key assets will be Become operational in 2022 in order to guarantee further cash flow generation once we are over with our investments. This way, we're going to reduce the group's debt dramatically. We're going to simplify our balance sheet by reducing our stake in Repsol from 8% to 3% in 2021. And then the sustainability and governance criteria, which are critical to the group, We will be able to access great financing and more competitive financing in the current context. And now Let me give the floor to Mr. Rafael Gomez Del Rio, who will talk about Sasir Concessions. I will use the next minutes in order to tell you about of The goals that we have met as part of our 2015, 2020 plan, the new targets for the 20 20 1, 2025 period. How are we going to attain such goals? Where? And finally, We will talk about our competitive advantages with regards to our peers. Sasir Concepciones of is a company that develops infrastructure at the SASIA Group and we specialize in greenfield projects. We are present throughout a concession project life cycle. We have more than 65 assets. We are present in 15 countries. We have an investment under management in excess of $18,000,000,000 We are the 4th greenfield developing company at a world level, the first one in Chile, the second one in Colombia, the second construction company in Latin America and At the closing of the 2020 financial period, we reported 1,400,000,000 in revenue, up 20% year on year, BRL365,000,000 in EBITDA with a 5% increase. We have invested $18,200,000,000 We have a backlog of $36,000,000,000 Our asset lifecycle stands at 25 years. We manage 2,700 hospital beds. We provide water services to 9,500,000 people. And finally, in our airports and hubs. Usually, we have 44,000,000 passengers. So we are present throughout the life cycle of concession projects and contracts. So let me now talk about the company's strategy. First of all, We are trying to handpick the projects we intend to invest in. We have it very clear the kind of projects we want to develop low demand risk or mitigate it demand risk projects. We also identify our the countries where we want to invest, the legal conditions. We're trying to seek countries with legal security. And after that analysis, we decide whether we want to actually Carry on with the project or not. We set a minimum profitability of return between 8% to 12% depending on the country and risk involved. And we therefore get down to business. If we decide to move on, we develop the design engineering. We also take care of construction, the infrastructure construction. And then we have the financial engineering. We decide how we're going to allocate capital, which structure is best for the market and risks at hand. And finally, we have the operations and maintenance. This is provided by Savicios. Therefore, we provide a proposal and if we are awarded the project, we keep on working. And we therefore design the engineering project in order to spot risks before construction and before financing is formalized. For example, social environmental risks, service related risks. We identify and try to work them out In the design phase, we approve what needs to be approved. Next, We reduce the company's risk level and we optimize financing. So this is a Strategy we have, we're trying to seek competitiveness and by reducing risk, we can reduce of that between 203 100 basis points. Construction begins, we are absolutely efficient and thorough of in fulfilling the committed terms for commissioning. And once the project is commissioned, we Take a look at the financing approach. We took we once again reduced risk in construction. And if any refinancing is needed, we continue operating by reaping the value. So we are we always keep in mind the assets total or partial rotation. We spoke about an average asset life of 25 years. Here you can see a list of our key projects. And this year some common characteristics. They are all young assets that however provide visible cash flows that can be expected in the forthcoming months. These are our key assets. 2 of them are similar. And let us see what that represents. First of all, we have the University of Idaho. This represents our entry into the U. S. Market. As part of our latest strategy plan, we set ourselves the goal to of Enter into the U. S. Market in 2025, but we already did it. For us, therefore, this is a project that we like because it's connected to sustainability, to the carbon footprint reduction and payment upon availability. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Italy, Italy. This is our benchmark country. We had 3 contracts with the Peve Montana Veneto, the A3 motorway project, the 8.5 and 8.25 motorway project that was also awarded in July. Pasto Pamplona Cucuta in Colombia, in Chile, we are present through the America Brasil project and the Ferrocarril Central a project in Uruguay. This is a project that runs along 300 kilometers of and an investment in the amount of €920,000,000 on payment upon availability. These are shares and common characteristics. They account 60% of the company's value. And second, they will become operational in the forthcoming months. In 2022, All of these assets will be commissioned. The Ferrocari Central in Uruguay project will be commissioned in the Spring of 2023. So this is what Sasir Concessiones is about. So what about the targets we have already attained according to our 2015 2020 strategic plan? Our revenue was at BRL700,420,000,000 from ordinary activities. Anytime the amount of BRL192,000,000, we closed in the amount of 1,600,000,000 coming from recurrent income of and a return amount of €365,000,000 So we were able to grow throughout all these key financials, surpassing 10% in on average. But we have kept our EBITDA ratio at 65% in infrastructure, in water, waste and energy at 16%. Likewise, we have kept our success rate In the awarding of projects, we were awarding 20 projects, 3 projects a year. We commissioned half of those projects already, 2 projects per year, but we have also forwarded into new countries, such as the United States, which is strategic towers, Uruguay, Brazil, Mexico, Paraguay, Colombia and Mexico, respectively. Now let me stop. Remember what we said in 2019. So let's Take a look at what we announced at that time. We said that as of 2021, Sasirconcessiones was going to be a sustainable company was going to use its own resources in order to honor all of its obligations. This year, we have invested More than $130,000,000 and this is fully supported by the company's cash So we have kept our success rate in concessions. We were awarded 6 projects in the past years. We commissioned also 6 projects. And I believe that we have proven to be pandemic resilient. We were able to grow in terms of EBITDA and revenue, 5% 20%, respectively. We fought it into the U. S. Market, as we already mentioned. We also proved our financial capabilities. We closed projects in the amount of BRL 17,000,000 and also several financial transactions in the amount of BRL 4,800,000,000. We have also kept Asset rotation strategy with 2 key transactions, Guadal Cesar, as the Chairman said. We divested in this company in June last year. We're talking about a successful transaction. The valuation that we had was surpassed by more than 10% with capital gains amounting to €80,000,000 At the same time, we also allowed a new financial investor in, in some of the assets we had in Chile at 49%. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] So, now we can move on. Well, that's what we've done so far. And what targets have we set within the framework of our new strategic plan. Well, I think the most important one is the average distribution on a recurrent basis of more than 2 €100,000,000 more than €1,000,000,000 in this period. We've also maintained our profitability of between 16% 20%. Our EBITDA ratio is 65% 16% in terms of WWE. And where are you going to do this and how are you going to do it, you may ask? Well, how are we going to do this? We'll continue tendering in complex infrastructures with a low level of demand risk. We'll invest an average of €150,000,000 per year. Simultaneously, last year, we also carried out a restructuring process within the group and the Water division, The WWE division came under the responsibility of Fasidios and solid urban waste So, the green vector is going to provide us with impetus in search of growth in the area of sustainability. And the focus is clearly on the Anglo Saxon market. All of our efforts will be channeled at Achieving geographical distribution as follows: 1 third in Europe, 1 third in North America and 1 third in Latin America. So it's true that concessions are moving forward rather slowly. So these will be targets for the year 2,030, but we're still working on that to achieve those objectives. And finally, what are our priorities? Well, I would summarize 4 priorities: Society with which we interact, We have to empower people, create jobs, build schools and provide training. In short, we want to lead a fingerprint of Via the improvements and enhancements in society through our operations, sustainability, which is linked to the green growth vector. Well, We have to ensure that our infrastructures do not disrupt all the environment in which we operate. We have to seek improvement, enhancement whenever we carry out any infrastructure projects. Our teams, young, diverse, multicultural and tremendously talented. That's how we can describe our teams. And finally, but equally important, we will continually looking after our investors. €1,200,000,000 in investment. Today, financial investments accompany us with an investment of €600,000,000 So, we want them to continue growing with us and to continue making money. We want them to be happy and to repeat the experience. Well, you may ask yourselves, how can you go from 365,000,000 to more than £1,000,000,000 in EBITDA. If in 2015, well, we managed to more of How are we going to achieve the Skol? Well, we believe that we've already completed part of that work. We started with 365,000,000 Carlos earlier explained that following the commissioning next year of the Pedemontana Veneto infrastructures, we will achieve that goal, that approximate figure. Then the A3 will be commissioned and these are yellowfield services which will incorporate 190,000,000 approximately. They will be commissioned as well as the rumichakapasto, etcetera. And finally, the effective and efficient management of all of our assets will yield approximately €70,000,000 a total of €1,000,000,000 Equivalent to 85 percent of the group's total EBITDA. So we mentioned our objectives before and how we were going to achieve them of [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] and in which geographies we would like to do this. Here, we would like to show you the pipeline that we have identified. Of course, this is going to change. We're at the beginning of our strategic plan and we've analyzed approximately 70,000,000,000 euros here. After applying our criteria that I described earlier, criteria which consists of a well defined public private partnership framework, a stable political and social environment, OCD countries, investment grade and risk mitigating mechanisms, which will provide us with a yield that we can finance. Also stable and sustainable financial markets and a predefined pipeline, which is where we are at now. And again, the focus will be on complex greenfield projects coupled with demandless mitigation mechanisms. So we refer to the analysis, 20,000,000,000, £10,000,000,000 and we will offer what I just mentioned and we hope to be awarded €3,000,000,000 That's the expected to be awarded. In the case of Italy, Spain, Portugal, we can also highlight Ireland, U. K, in the Anglo Saxon world. In North America, We've identified approximately $10,000,000,000 We're currently in the preselection phase. We'll talk about that a bit later on. And then in Latin America, Our markets in Colombia and Chile will analyze opportunities in Brazil, very calmly, of course, and other geographies where we're present, Where we can identify opportunities, Chile, Brazil and Colombia. Well, there's more than £10,000,000,000 there in pipeline, which is already in tender. And how are we going to penetrate the North American market or what are we doing at the moment? Well, in contrast to traditional Sasier markets, Where there's a technical presentation followed by the award of a tender, which is either according to the most competitive bid or somewhere in the middle, depending On the country where the tender is carried out because the system is different than each place, in these markets, there's an important technical component, which we refer to or describe of as a beauty contest. For us, it's a bit like a beauty contest. We like to create good consortia, pull together good experience. And on that basis, we can either make the cuts or not. We can either part the refQ. And normally, we compete with 1, 2 or 3 competitors. In recent tenders in which we've been involved, more than 70% of occasions, we have passed through the RFQ phase. Here on the slide, you can see the processes which we're involved in, in the prequalification processes for Europe, the U. S, Canada and Australia. Okay. I'd like to pass on to the last point of my presentation, namely our competitive advantages JPY 2. With respect to our peers, we can highlight 5. I will mention the first of and then we'll be joined by Rodrigo Jimenez Alfaro, who'll give us more details about the final. 1, Virtual integration, the way in which we operate. I've described part of that already, but we'll go into detail now. High success rates in awards in the tenders in which we're involved. Commissioning capability in due time and form for the assets which we've been awarded the resilience of our backlog and also our financial strengths. So, focusing specifically now on vertical integration, We define our approach to a project in 3 parts: infrastructure of the project. Design and also maintenance and operation design. Again, this is something that's repeated throughout the process. The bid is submitted. Of If we're awarded this, we will continue to work on the design of the infrastructure to overcome any challenges that we may face and then we will conclude the financing. If we get to that stage, then we will construct commission in due time and form. And as from that point, as I mentioned Before we will revalue the type of strategic refinancing strategy that we have to pursue. So, the conclusion we can draw from all of this is that since we are vertically integrated company. We are tremendously efficient and we have a tremendous capacity to analyze projects far better than our competitors of [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] And in these study costs, well, we're also extremely competitive. And simultaneously, We also allocate risk in the parts of the company that's best prepared to endure that risk in terms of engineering and design of With the construction division, resources, capital and financing, concessions and maintenance and operation to Servitios. Well, this vertical integration structure means that we are therefore able to successfully approach The second competitive window, which is a high level of success in tender processes. Since the year 2015, we've studied more than 120 opportunities And applying market criteria, as described before, we have managed to rule out half of those. Of the 60 projects in which we've Participated, we've been awarded 1 out of every 3 projects. You have a list of those projects by geography. The average is as well, 3 a year, of €150,000,000 investment per year on average, with a yield approximately 10.20. At the same time, we've repeated this in the Italian market and we've also penetrated the United States. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] In terms of our commissioning capability, well, I think that a image is worth more than 1,000 words. At Safir, We are exceptional because we are capable of turning our challenges into success as we have demonstrated throughout our history. We tackle all projects with passion, enthusiasm and with the knowledge and experience of being international specialists in complex infrastructure €60,000,000 investment. We make progress to overcome new challenges. Our main key assets will be commissioned in 2022. In the next 6 years, we will bring 15 new assets into operation. We dutifully meet delivery deadlines. Our clients, creditors, partners and investors recognize our solid career track and professionalism. We innovate to ensure maximum safety, quality and efficiency. Beer companies. So, there's not much more for me to say about the 3rd point. So, we presented the latest commissioning projects and the ones that are in the pipeline. We always fulfill our word in due time form and also quality. We've transformed our company into one that's Tremendously predictable about what we're going to do and the way we do it. The 4th strength, the 4th strategic strength for Safir is the configuration of our backlog to mitigate risk. From a decision making standpoint, In relation to low demand risk projects or those that incorporate a mitigation mechanism, well, today, We can see that this represents 86% of our revenues and those are accompanied by a certain degree of mitigation. There are 10%, which are classified as low demand risk, and we'll explain later why, and only 4% are associated with demand risk. In terms of demand risk mitigation mechanisms, whether there's a long list, I'd like to highlight the most important one. For example, support guaranteed income and subsidies during the progress of the project or depending on the commencement of operations and commissioning with different annual installments. We also have variable term contracts. We tender the commissioning income. And once a certain discount rate is achieved, then the tender period will be concluded. If this installment period is not completed, then we can extend that period. We also have guaranteed income. Therefore, from year to year, A specific amount will be paid or this will be based on the level of traffic and according to a given term, If the level of traffic is lower, the concession period can be shortened and then the spread or differential can be paid, as we see in the example of Colombia. And then, payment upon availability. These are availability fees, which are associated with social infrastructures, But not only social infrastructures in Pedemontana Veneto, which is the jewel in our crown, we have it all in the A7 motorway of in Paraguay and also the central railway line in Paraguay as well. So, what do we consider a low demand risk? Well, these are contracts which have a sufficiently long historical record where there's no physical toll system and where we can also predict exactly how they'll behave. In other words, where we start and where we will end up. And this provides a certain degree of comfort and peace of mind. And finally, I would like to talk about all of this compared with our competitors. Well, in terms of operations, In the last year, we've grown by 8% approximately. We've grown in EBITDA terms by 5%. What about our competitors? Well, the revenues have fallen on average by 26%. Their EBITDA has dropped by 36% compared with, Sathir's. And all of this with a very similar demand trends, 23% in terms of the drop off in our competitors, in our case, it's 20%, because we have to accept that our mix sometimes doesn't include tolls And the level of traffic is recovered earlier. As I said before, we believe that the business model that we've chosen is the right one. It makes us tremendously predictable and also tremendously a company that you can trust in very strongly. And I would now like Good morning. Thank you very much, Rafael. Well, now we're going to look at the financial strengths of Sathir Concessiones. For this purpose, we'll divide this into 3 blocks. Firstly, for this period, the amount that we will invest and also the way in which we'll cover our equity requirements. Secondly, we'll talk about what we've done so far and how we've got to where we are now. And thirdly, we'll look at the way in which we generate value for our clients through our financial strategy. In the previous Investors of the company. As you can see, in the year 2021, we're generating of €140,000,000 we're going to invest €131,000,000 Therefore, we will generate €9,000,000 in cash. For the period 2021, twenty 25, we'll average €220,000,000 in cash per year, which is equivalent to €1,000,000,000 during that period. We will also be investing £150,000,000 on average each year. This is equivalent to £150,000,000 over the whole period of €750,000,000 over the whole period. And so far, we've committed €470,000,000 of that €750,000,000 which, as you can see here, will be invested over the next 3 years in print mainly. This will also provide room for maneuver over the subsequent years for future tenders. In that period, we'll generate €1,000,000,000 and we'll generate and invest €250,000,000 Therefore, that will provide us with €250,000,000 Without taking into account any type of complete or partial divestment, as regards to what we've done so far, Well, over the last two years, we've closed financial years valued at over €4,800,000,000 of With the trust of our finances, commercial banks, multilateral banks and also institutional investors in 2015, backlog. Well, 100% was Commercial Banking. This percentage is now only 30%. This shows how we've gained the trust of all of our financing funders or financing entities. We're continually analyzing the financial market in all of its spheres. For example, in Colombia, we spent more than 3 years analyzing the financial market Before, we were awarded our first concession. We implemented innovative financial structures, for example, the 27 motorway in Paraguay, which we also issued a bond during the construction phase, but this is also supported by a multi Lateral Bank. We've also issued the most the largest construction bond in Pelle Montana. We were also the first We have a financial closing year in Colombia with Romicha Capasto. Safir Concepciones is the leading developer of infrastructures to have issued a social bond in the entire region of Latin America. And we did this with the refinancing of Montes de Maria, where we issued a bond that was linked in the amount of €240,000,000 All of these things that I'm telling you about have been endorsed by the Financial Markets. We've been awarded many, many prizes. For example, the deal of the year, Montez de Maria for a local currency program. We were also awarded the prize for the best project in Penemontana Europe. We were also deal for the year in Colombia for a highway project. And we also received an award for the most important financing of a railway project in the region for our central railroad in Uruguay, So we've looked at the first two points: how much we'll invest and how we'll cover our needs And what have we done to get to where we are today? Now I'm going to focus on the way in which we generate value through our projects via our financial strategy. For this purpose, we'll give you an example of a standard Sathir project without demand risk and an investment of approximately €600,000,000 of €150,000,000 will be injected in equity. And this will turn to the financial markets for that. The financial strategy begins in each phase of the tender phase. During bidding, we analyze the characteristics of the project, we approach the markets and we design the best financing structure. Once we're awarded the bid, then we begin to compete with all financing entity and sources to obtain the most economical approach. But for this, we have to perform a couple of prerequisites, the design and prior approval of the project and we also have to manage licensing, environmental or social licenses, etcetera. If we don't carry out all of these formalities and eliminate these risks from the project, Then nobody will wish to finance the project. So to close the financing of the project, we have to eliminate all risks. Once we've managed to close financing of the project, the value of our equity increases by approximately €45,000,000 That increase is driven by the reduction in risk. As I said before, we've eliminated risk beforehand. We have also managed to generate greater cash flow in the project, thanks to optimization during the design phase. Once we've closed the financing and the design of the project and all the licenses, then we have to embark upon the commissioning of the project and also with construction risk. We feel fairly comfortable with this Given its severity, why is that? We belong to a group that has a very strong vertical structure. We have a wonderful construction arm of that is accustomed to dealing with all of the challenges that arise in this phase of the project. And this demonstrates that we of have managed to achieve 10 commissioning projects commissioned in the last 5 or 6 years, always complying with the deadlines and in due time and form and fulfilling with all of the customers' requirements. At the end of this phase, we move into the commissioning phase. And here, we have to determine whether it's the best time to carry out refinancing. When refinancing, there are 2 objectives. The first main objective is to capture parts of the value of the project and secondly, optimize our financial strategy, extending the debt period and also reducing costs, thus reducing risk. In this way, we're able to enhance the value of our project by 45,000,000 It's not worth €150,000,000 anymore. It's worth much more, €155,000,000 or even more. We normally tend to invest in all of these different formalities that have to be carried out beforehand and approximately 3 years on average to build the asset and to close the financials. So, we've gone from an initial value of £150,000,000 in equity terms to 350,000,000 in terms of our return of value. Once we have assets with an optimized financing structure and a low level of risk, we can then turn to the market and then perform selective rotation of assets, achieving between 16% 18% profitability. We've done this in the past and this graph shows all of the divestment processes that we've carried out. We've achieved these levels of profitability of above 20% in operation and 16%, as you can see the weighted average IIR. We analyze the projects during the tender or bidding phase to determine their viability. If they are viable, we will participate in the bid. Then we will close all of the financing with all of the prerequisites. We Construct the asset, we increase value, we generate cash flow. That's the way in which we generate value. Thank you very much for your attention. And now I'd like to leave you with Marta Hill, The world is its forests, Rivers. The earth we walk on. The air we breathe. The world is a wonderful place that we need to protect and look after. At Sesir, we care for the planet, helping conserve and improve its ecosystems, promoting the circular economy responsible water use. We build and operate sustainable infrastructures to uphold people's well-being and the development of society, which we participate in. We work at mitigating climate change, reducing, compensating and neutralizing our emissions until we achieve our goal of being carbon neutral by 2,050. In our day to day, we promote the implementation of sustainable projects where diversity, inclusion, accessibility, conciliation, human rights, safety and of course, innovation are part of our DNA. Our leadership in sustainability is driven by corporate governance best practices Where transparency, relations with our stakeholders, adoption of new policies and ethical and responsible business management define our decision making and long term goals. Thanks to that, we will increase our sustainable development investment by 50% 2021 2025. In this world that changes at light speed, we want to continue exploring new horizons, overcoming challenges, improving people's quality of life with more sustainable and resilient infrastructure. We will continue transforming the world. Good morning, Sasir. We focus on a responsible management model With sustainability at the very core of all of our activities, so we focus on sustainability using 3 key pillars. We're trying to cause a positive environmental impact, a positive social impact and also positive impact on our financials because we believe that thanks to sustainability, we can make people's life better, we can also improve the environment, But we can also improve our company's finance. That way we can access increased financing conditions and better conditions As well, therefore, fulfilling one of our targets, and that is reducing our recourse debt. All this, Trying to attain the SDGs and with a solid environmental commitment. So we dedicate our efforts, talent and technical excellence to design, finance, build and operate the best infrastructures. For example, transport infrastructure in order to connect the territories where we operate. And we have some examples such as Pedemontana in Italy or transport hubs in Madrid. Also social infrastructure in order to keep looking after our patients. Of Chile Hospital in Chile is one example and also water and sanitation facilities such as the one in Melbourne in Australia. So we want to go one step further, and we want to build the best possible infrastructure. So now sustainability is at the very core of our strategy, supporting one of the pillars that will be with us in the next 5 years. That way we have developed our own sustainability plan, our plan that is called sustainable. This is an ambitious road map with clear targets in order to direct our decision making in the forthcoming years. So This is what we are all doing at Sazer and this is being recognized by some important firms. For example, as Juan Carlos said, we have been awarded as 1 of the top 5 companies in the world. Telelytics gave us that rate in the first one in Spain and the number one in terms of market capitalization. We can also talk about the carbon disclosure project that provided As with a minus rating due to environmental management, thanks to our positive evolutions since 2018 So our strategy is supported by 3 key pillars. Let's start with environmental pillar. So we are firmly committed to environmental development in the short and medium term. So one of our targets is to become carbon neutral before 2,050. And to this end, we are taking steady steps in order to reduce our emissions by more than 25% by 2020 5%. We also want to reduce our GAGs by 25%. And all this It's supported by significant increase in environmental investment, dollars 34,000,000 in 2020. This will continue to grow More than 50% until the end of our strategic cycle. All this is supported by endless initiatives that we have deployed across our projects. Here you can see some examples, but let me touch upon 2 of them, which are the most representative ones. For example, We have a special focus on reducing our water footprint. We know that in Chile, there are some water related problems. America Verusio Oriente is an example of some of the water treatment plants we have put in place in order to treat as much water as possible in order to bring the water that we use in our processes back into the systems. And we therefore treat more than 100 and 10 cubic meters of water every day. We also focus on biodiversity. Romichakapasto is one example of that. We have planted more than 500,000 trees. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Local families have been involved in this project and we have created good quality jobs. Our second pillar, the social pillar. This. We have been able to help more than 100,000 people directly, 300,000 people indirectly. In addition, we had more of 100,000 people who volunteered in this process. In 2020, 2021, as a result of the pandemic, Most of our operations were identified as essential activities. Therefore, we made a special effort in managing hospitals of looking after people managing waste and water in order to make our small contribution. So more than 50 social action initiatives That have enabled us to donate, for example, a hospital in Colombia donating more than 13 tons of foods And many health kits in countries such as Mexico, Colombia, Peru or Chile, respectively. So the last pillar, our impact on the company's finance. So here we have to I mentioned that we focus on a strong governance system promoting the best practices internally and externally. We have created a special committee that reports to the Board of Directors that specializes in governance, An sustainability committee that is composed of senior management. As a result, we have been able to review our code of conduct We'll create 20 new policies around the topic of sustainability. And finally, one major impact, and that is the impact of Now we are able to finance to obtain financing in better conditions. And that way we can also reduce our corporate debt. We have two good examples of some green projects that were formalized in 2021. First of all, €160,000,000 for a 5 year term. This financing facility has enabled us to finance our environmental branch project. We will also have some additional financing, thanks to the attainment of our environmental and social targets. And the second operation that Rodrigo mentioned, the first social bond that was issued Latin America as a result of an infrastructure project. We have been able to refinance our Montezeria project for more than €175,000,000 In this case, we were certified for the positive impact caused by the arrival of such funds on the communities. So at Safir, When we talk about sustainability, we also speak about innovation. These two concepts go hand in hand. Out of €8,000,000 that we invested of innovation in 2020. Over 50% was allocated to sustainable innovation projects. To us, innovation provides Cutting edge because we can make better decisions. We can also reduce energy consumption, raw of consumption of water consumption, we can also improve users' life and we can also generate new sources of income. Now let me share with you 3 actual projects that show some innovation that now of has become a source of income. We have one example that is very setting, thanks to innovative technologies such as the Internet AI or augmented reality, we have been able to create new experiences for visitors. Another initiative is Sasionic. This is a new lighting system in order to improve energy efficiency and timelapse, saving more than 60 6% of energy consumption, increasing the life cycle of the lighting systems. We have more than 60 kilometers of tunnel throughout Spain, Italy, Colombia, Mexico and Chile. As a result, we have been able to create a portfolio in excess of €5,000,000 And finally, RARX, this is a new material that can improve asphalt and uses recycled materials. So by doing so, we can reduce the consumption of raw materials, we increase the lifecycle of infrastructure, we reduce acoustic pollution, and we therefore recycle wires and tires, more than 100 kilometers running along Spain and Mexico. We are talking about recycling more than 300 more than €5,000,000 in revenue. So throughout this presentation, I have tried to convey to all of you how relevant innovation and sustainability are to Cecile. They cause a positive impact on the environment. They also cause a positive impact on our stakeholders. And no doubt, of they also have a positive impact on our own finance. For that reason, innovation and sustainability are already embedded into this company's strategic decision making process and will continue doing so in the forthcoming years. Now let me give the floor once again Italy is a priority market for Cecere, where we strive to continue growing in the upcoming years. The strategic alliance with our local partner FENINC Has allowed us to achieve 50% success rate in the P3 tender bidding processes. Since 2019, We are leaders by number of awarded infrastructure P3 contracts. In the past few months, we have incorporated 2 highly complex sailfield projects to our asset portfolio, the A3 and the I-five twenty one motorways that joined the Pedimentana Veneta Greenfield project. Our success story in Italy started here. The Perimentana Venator motorway is our signature project on one of the most important infrastructure the projects in Italy as it connects the main industrial areas of the Veneto region, home to close to half a 1000000 strategic companies. With works the 99 Progress, this motorway will enter operation in 2022. We will be in charge of its operation and maintenance until 2,061. This project has acquired a €2,600,000,000 investment and its financing has been one of the largest transactions in the history of the European transfer sector with a bond issue worth more than 1,500,000,000. The Perro Montana Veneta offsets any demand risk for the concession society, Thanks to an availability payment fee structure. Our commitment to the region includes the direct creation of 2,500 jobs, a design below ground level to mitigate the noise and the impact of the landscape and the reforestation of 250 hectares. Our 2nd challenge in Italy came with the award of the A3 motorway contract. At 53 kilometer of length, it is one of the most important motorways in Italy. The road traverses the Campania region and runs between the Napoli, Pompeii and Salerno regions. With an estimate investment of €870,000,000 This yellow field will improve the road safety and reduce its environmental impact. In the Piemonte region, we have won the A21 motorway Turin and Piacenza, the A5 between Turin and Kincheneto and Turin's Beltway motorway system. These roadways are strategic of the Turaneese Metropolitan Area. In total, 320 kilometers are already operational and provide service to more than 4,000,000 residents. During the 12 year contract period, we will turn this motorway into the safest and least polluting road corridor, thanks to an 1100,000,000 new investment. Our commitment to Italy won't stop here. We will continue to participate in tender bidding over profitable assets with stable cash flow Italy is the key strategic market for of More than 30% of our EBITDA has to do with assets in this area. 20 years ago, we made a strategic decision, and that was building a partnership with CYS, VIST and FENIC. We supplement our technical and financial capacities, and our partner helps us in the management process with authorities. Today, we had 3 concession projects in the area with more than R4.6 billion dollars in investment, 535 kilometers of cutaways and backlog in the amount of $12,600,000,000 We should underscore that the Italian market is quite a complex one with stringent technical requirements. So that entry barrier, of Thanks to our joint work and collaboration, we have been able to tender for new projects. Today, highways in Italy, according to European regulations, cannot expand beyond the concession terms. Therefore, we have a significant pipeline for the renewal and extension of such contracts. We are already going through a preselection process. We are a preferred Peter for several social projects such as hospitals. We are competing against 2 or 3 more companies and more than that, and we hope we will keep on being successful. The jewel in the ground for us is the Pedal Montana Veneto project. This is a corridor, a ring road between Venice and of We're talking about 90 kilometers, 25,000 cars per day and investment in the amount of €2,400,000,000 financed in a matter of €1,600,000,000 There were some subsidies at first. The concession period It's 39 years, and we're talking about payments upon availability. In Italy, other mechanisms exist with regards to mitigated demand. There is an upside potential that is referenced traffic set by authorities. Once that value is exceeded. We allocate 70% to authorities and the recommend to the concessionaire. Another contract was recently executed, Naples, Pompeii and Salerno, that's another contract for a 25 year term. I'm not talking about 39 years like in the case of of By the Montanerio, we're talking about 25 years revenue in the amount of €2,700,000,000 So what about the mechanisms Have been put in place in order to reduce risk according to this contract. Ideally, this tariff is updated. And based on the traffic that has been tender whether we are above or below. We have to adjust it according to the bidding WHCC. We have A5 and A25. These are projects that have been recently awarded. The contract will be formalized in the upcoming weeks. In this case, we're talking about a 12 year concession term. Both assets have already been commissioned. We're talking about yellowfield assets. But in addition, there is a different kind of demand mitigation risk mechanism, anti crisis, price alphas, COVID, terrorism, these are all the different certain mechanisms that should be triggered should any of these situations arise. Now the concession could be extended or else of we could be set according to the resulting amount. So the next time. This is standard, the new awardee will have to pay for such an amount. To us, the 2nd most important country is Chile. Chile Enabled us to step into the concession markets 25 years ago with Los Filos La Sirena. 3 years ago, we were awarded this bid again. We have 12 infrastructure projects, Two hospitals up and running, 2 airports, some highways and 5 water related projects. Investment is in the amount of €4,400,000,000 with a backlog in the amount of €7,600,000,000 Our we have 3,000,000 passengers going through our airports and 8 70 hospital beds. Vespucio shows where we are now focusing all of our attention. This is a complex infrastructure with Some mitigation demand risk mechanisms that we also pay attention to. Now I'm going to play a video so you can see how this asset has been performing and then we will talk about With construction nearing 85% progress and it's mere months away of its commissioning, America Vesputi Oriente is one of the most important P3s in Latin America. This is one of the most modern urban highways of the continent and it incorporates peak technology, innovative construction methods and high environmental standards. With an investment of approximately €1,000,000, America Vesputio's layout subterraneously connects 6 municipalities of the northeastern region of Santiago de Chile, closing the most important beltway in this city. The project has faced many technical challenges. It runs under the course of the Mapocho River and comprises a myriad of constructive engineering solutions, including, among others, tunnels at 2 levels, mining, cut and cover and hybrid tunneling. The latter encompasses 2 different building systems, making America Vesputhio a unique infrastructure. Furthermore, it has the highest quality and safety standard for road users. TO ensure the best comfort, we have developed an innovative LED lighting solution, trademarked by SASIA CONFACIONIS. America Vesputia will improve the quality of life of the citizens of Santiago, cutting time travels in rush hour by 30 minutes, significantly alleviating surface traffic and reducing pollution levels. This macro infrastructure will make Santiago a more sustainable city with the creation and expansion of 140,000 square meters of green space, of conservation of current tree specimens, bikeways and pedestrian lanes. So America Vespucio represents quite a challenge from the design standpoint And also due to the fact that building an urban highway running through the Highest income areas in Chile, Las Condes, the Las Condes District. So we have to minimize any environmental impact in the area. So here we are talking about 2 demand risk mitigation mechanisms. On the one hand, there is a the sub selling mechanism that applies during the construction phase. This is related to the degree of progress when you reach 40% of completion, 80% of completion and so on and so forth. Then on an annual basis, there are some fixed installments or payments. On the other hand, the Project term is variable. We have to bid for all of the concessional assets, then a discount rate is applied and the concession period is over, but But it can also be extended 45 years, that's the term for this asset. We mentioned before that we have a good commissioning capacity. This project will be commissioned in July, but we are not working in order of Colombia. To commission it in the spring in order to do it 6 months in advance. Colombia is our 3rd market. We have several contracts with several investments, 5.24 kilometers of roads and an investment of $2,300,000,000 We could like to highlight the most important projects, of will be completed by spring. All of the functional units will be commissioned of By then, according to how these units are commissioned, you can exit some irreversible payments. We're already collecting some yields. And then we have the Pamplona Kukuta project that is expected to be commissioned during fiscal 2022. What's the common characteristic here? We there is a commissioning process and then a similar mechanism applies. There is a pattern traffic system in place. The concession can be shortened. If you are below that period, you have to pay a difference of every 5 years. So there is a financing facility obtained from a local bank. And this is one of the projects that we quite like. And it's complex because the project is very highly complex, because It's in quite a peculiar natural setting. Colombia is spectacularly beautiful. So We believe that this project will be commissioned shortly in the next month. Now we would like to talk about the University of Idaho and what represented for us. Now we are going to play another video so that you can see how we have approached The U. S. Market and the main characteristics of this contract. In 2020, we have met an important talent. We have won our first P3 contract in the United States, anchored on vertical integration and our team's experience in achieving such year systems of the University of Idaho's Moscow campus. This university works like a small town. Founded in 18/89, it houses close to 12,000 students. In 2021, we started working on modernizing its facilities To make them more sustainable and efficient. We strive to reduce the environmental impact by using renewable energies and Innovative Technologies. Our goal is to be carbon neutral and energy self sufficient by 2,030. We support the University of Idaho student talent through internship and training programs, facilitating their entrance into the job market. The Sasseur Group started its activity in the United States 3 years ago with its first construction contracts in Florida. Since then, We have become one of the principal contractors in Florida. We are also growing in Texas. Since 2018, we have won 9 contracts With a backlog that exceeds $1,000,000,000 The University of Idaho utility system P3 allows us to consolidate our presence in English So this is the kind of project We would like to continue performing sustainable projects, green projects. We believe that universities represent a good market the business. We have already identified a pipeline for the next months in more than 10 American Universities, EUR 1,200,000,000 in revenue of And plenary as a top partner. In the United States, you need to have the best references possible in order of the company's valuation. Thank you very much. Now I would like to give the floor to Maria Munoz, Good morning. Next, we would like to share with you Sasir Concepciones' valuation. This valuation is in the amount of €2,111,000,000 We understand that this is quite robust, prudent and consistent with the valuation that we reported back in 2019 during the Investor Day, and it's also in line with the company's performance over the past peers. So the company valuation, taking into account Sapia Concepcionesarte's valuation, totals 2 point €811,000,000,000 out of which €2,614,000,000 comes from the current asset portfolio as shown in the graph, R196,000,000 corresponds to future investments as I'm going to explain next. Of this. So this valuation goes up by 30%, reaching in 2025, EUR 3,691,000,000 out of which EUR 3.083 corresponds of the current portfolio and the remaining amount corresponds to future investments. With regards the main valuation hypothesis and methodology used for valuation purposes. This evaluation corresponds to December 31, 20 2021. We have applied the discount rate method except for the water division that I'm going to elaborate on further. As for the discount rates applied, they correspond specifically to each country, taking into account the status of each project. Therefore, we have obtained average weighted rates of 10% to 11% in the case of construction assets and between 8% to 9% in the case of operation assets. In this valuation, we have also included some refinancing hypothesis for some specific assets, such as for example for the Pamplona Cocota project in Colombia and for the AVO and Camino de la Fruta projects of in Chile. As for future investment hypothesis and leveraging ourselves on the company's track record over the past years, We believe that until 2025, the company will continue to be awarded the same amount of projects, amounting therefore to €150,000,000 in investments. We have only taken into account the growth and awarded projects until 2025, which means that from 2025 onwards, the company will no longer participate in tenders. In this valuation, we have not considered any asset rotation. Therefore, we believe that there's quite some room for improvement. If we now take a look at the water business, please remember that the water business [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Now is part of the concessions division since 2020. For the operation of this division, we have applied a different methodology taking into of the we have the following classifications. First of all, we have one classification that corresponds to integral water cycles of O and M contracts. We have valued them according to our EBITDA multiples. And on the other hand, we have long term plan contracts that have been valued according the distribution discount rates, applying discount rates that are specific to each country. That way, we have valued the water business in €209,000,000 Now we could like to show you how we started out at 1 point JPY 7,950,000,000 back in 2019, and now we reached this amount. For this purpose, we would like to focus on the portfolio we had in 2019, and we could like to show how we have been able to perform better of since 2019 up to date. First of all, if we take into account the valuation of 1.795 EUR 1,000,000,000 we have to discount impact due to our divestment in Guadalcesa. Next, the rolling forward effect Due to the 2 years that have gone by since the previous Investor Day today, plus the de risking effect That has to do with the commissioning of assets. In the past 2 years, we have commissioned 5 assets. So both effects brought together improved devaluation by €595,000,000 On the other hand, we have a negative foreign exchange the market. This has to do with an unfavorable macro context and which we did the valuation. We have to add €73,000,000 due to the optimization of our assets. That way we come to EUR 2.140 €2,000,000,000 So with the same portfolio that was €1,792,000,000 in 2019, we Based on this figure, we have to add some new awarded projects in the past 2 years In the amount of EUR 263,000,000 associated to those projects that we were awarded in the past 2 years, We therefore accounted €2,405,000,000 This is the current value of our portfolio without taking into account the Water Division and future investments. Based on this 2 €0.405,000,000 figure. We are going to talk later because but of For the time being, we should remember this valuation amount without taking into account future investments in water. Next, we have to add €209,000,000 in water. This is due to the company's restructuring process and the water business integration into Sasir Concepciones. And now we count to €2,614,000,000 This is the company's current valuation if we take into account the current portfolio and the water division. Next, we have to add the value that we're acquiring from future projects that I described at the beginning. If we take into account awarded projects in 2025, and we are talking about value being acquired in the amount of 190 €6,000,000 Now if we consider the increasing value to awarded projects in the past 2 years, We understand that this is quite a prudent approach all in all. So if we add up the value of these future investments, we count to RUB 2,811,000,000,000. That's the current valuation of the company. Now in 2019, we showed a valuation curve That you can see here. You can see how it has evolved over time. Now this valuation curve for 2021 So back in 2019, we said that the concessions as hands were going to be worth this amount. As I mentioned at the beginning, if we take into account the current portfolio without considering the water division restructuring, we are already hitting this amount of €2,400,000,000 Leaving aside that we have divested our stake in Guadalajesa and even in an unfavorable macroeconomic context, We therefore incorporated the water division afterwards. And Afterwards, the new investments, therefore, coming to €2,811,000,000 Now let me explain how we have been able to reach this amount of €2,400,000,000 In 2019, we said that the company was going to be worth this amount. But now let us see how we have come to this amount taking into account the 2 effects together in our divestment in Guadalupe Mensesa. This is due to the fact that we are [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] We have been awarded several projects. So the dark blue area shows the value that comes from the new awarded projects. As a result, the new valuation curve shows an increase compared to 2019, and it has been growing over time. If we now take a look at the impact of this valuation on our key markets, as you can see, our key market, no doubt, is Italy, with a weight of about 1 third of the company's valuation, followed by Chile, Colombia, which account for another 1 third, and next, Spain. The total evaluations is €958,000,000 right now. And in 2025, it should reach €1.2 RMB163,000,000,000. 50 percent of our current portfolio's valuation is concentrated in Italy, Spain and the U. S, respectively. If we now take a look The weight that each of these assets have, the key assets we have already described account for about 60% of the total valuation. So these key assets in Colombia, followed by A3 and A5 and A25 in Italy, Faro Carre Central in Uruguay. And then we have the other 8 the remaining key assets, including the University of Idaho. If we now talk about the weight of our valuation in the key markets where we operate, You can see the gray shaded area that represents the valuation curve and its evolution over time. The vertical bars represent on the one hand distribution, negative and downward distribution and equity allocations And then positive distributions. As for the valuation, Italy accounts for €958,000,000 to date. So this is down to amount to €1.52 per share. Italy's valuation will increase over time, reaching €1,375,000,000 With regards to distribution, the annual average is €94,000,000 I would like to underscore that when the Pelle Montana financing comes to an end, that is to say 2,047 distribution will grow considerably. We will still have 14 years to go, of we took into account refinancing hypothesis for certain assets. In the case of Italia, however, we have not considered any refinancing hypothesis. Of this. Therefore, we believe that we still have a lot of room for improvement and that we are taking a prudent approach. As for the 2nd market Chile, we are talking about a valuation of €523,000,000 which accounts for 0.8 €3 per share. As for this valuation, it keeps on growing, reaching 1 point BRL 71,000,000,000 As for distribution, we should also mention ABO, the Abbot refinancing impact and the Camino de la Fruto refinancing impact. All in all, we are talking about an average distribution of €78,000,000 per year. And finally, moving on to Colombia. Colombia's weighting is €474,000,000 Which is equivalent to €0.75 per share. The maximum value achieved All reached by Colombia's valuation would be €588,000,000 In terms of distributions, it's important to highlight that distributions have increased significantly the company's development. And finally, To conclude, we would like to show you a great capacity generating cash, the enormous cash generating capacity of our backlog, which is very robust and which is total portfolio distributions of €11,500,000,000 in total. This is equivalent of EUR 3,000,000,000 more than the figure that we gave you in the 2019 Investors Day. In terms of average distribution per year in the period 2022, 2030 is €213,000,000 This figure will increase in the period 2,030 onetwo,040, it will increase to €275,000,000 on average, concluding in the final period between 2,041 and 2,050 at €341,000,000 on average. As regards average cash yield, we start with 11.3%, increasing to 19% and in the final period, 27.9%. The DCS ratio coverages that measure the coverage weighting of the backlog begin at 1.3, increasing to 1.5 and increasing to 2.8 times. This demonstrates that our backlog still has enormous re leveraging capability and capacity. Therefore, with respect to revaluation, we consider there's still great room for maneuver. Well, this robust distribution underpins the valuation of €2,811,000,000 which we're of announcing today. And based on the foregoing, we believe that this is a robust valuation, a prudent valuation, which is consistent with the one that we presented in the 2019 Investors Day and in line with the company's performance in recent years. Thank you very much for your attention. And I would now like to hand the floor to Well, as I announced at the beginning, I was going to be very, very brief in my conclusions. 1st and foremost, I would like to thank Carlos Rafael Rodrigo They have provided information which has given you idea of the present and future of our company. We are working with enormous enthusiasm and all our experience to ensure that by the year 2025, Our company has a net recourse of virtually that's virtually non existent. And in terms of Sasier concessions, I think that Maria has explained this very clearly. Based on our analysis, This is now valued more than €2,800,000,000 but by the year 2025, this will exceed €3,500,000,000 very easily, Almost €3,700,000,000 they said. And this means exactly the same as what I said back in 2019. Of Safir Concepciones would not be sold for €2,800,000,000 because we believe it's worth much more than that. Therefore, I believe that Sasir offers excellent investment opportunities today. Our business is focused on concessions and infrastructure with low risk, a young and resilient portfolio with great cash generation capability. To summarize some of the major magnitudes or variables, an average dividend payout of $250,000,000 over the next 5 years and JPY 2,100,000,000 in terms of refinancing over the next coming years and JPY 1,500,000,000 in EBITDA for the year 2025. Asset rotation, which is extremely significant and which also endorses our recent track record and will give us revenues, profitability of between 16% 18%. Furthermore, our key assets or the majority of them in Chile, Colombia and Italy We'll begin operation in coming years, in the next year, in fact, 2022, which will Make our company even more attractive and will also improve the financial sector, making it much more robust. Thirdly, we have placed sustainability at the heart of the company so that everyone is able to clearly see which environmental, social and corporate governance measures are being implemented, which are part of our DNA and which are reflected in all of our projects. And at the same time, this will also allow us to obtain much more advantageous financing formula for our projects. And I'd like to just highlight 2 aspects from the valuation. I believe that the contribution of the new projects to the valuation, EUR196,000,000 have been invested in this for a period of 4 years from 2021 to 'twenty five. And this gives a clear sign of how prudent we have been when compared with the £273,000,000 that's been contributed from assets of [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] 2019 to 2021. And I repeat, in 2 years, new projects have contributed 273,000,000 In 4 years, this should really be, according to those sums, of 550,000,000 But we believe that our valuation has been prudent, sustainable in time and extremely conservative. And to achieve this, We have the support of our all of our interest groups, our stakeholders and the commitment of our management team and also the Board of Directors. And to wrap up, because I know that it's late, and I'm sure that you're all really looking forward to ask questions, I would like to start to end the same way as I started. In 2025, Sasir will be a company with no recourse debt. Our recourse debt will be non existent. And our assets, concession assets, in our opinion and based on our valuations, will exceed by far the €3,500,000,000 by the year 2025. And with that, We hope to obtain your trust and confidence, and we hope to continue applying this strategy to generate ongoing and continual value. And without further ado, we can now move on to the Q and A session. I'd like to ask Carlos and Rafael to come up to the stage, please. But Marta and Maria are also here if there are any questions for them and also the Executive Committee Well, good morning. First of all, I would like to thank everyone of for attending the more 130 people that have connected via streaming. We're now going to move on to the Explaining the dynamics of the Q and A session. First of all, we will hand the floor to people in the room and a roving mic will be handed out if you would like to ask a question. And secondly, we'll move on to the questions that we've received in the course of the presentation this morning via the webcast. I'd like to remind you that the Investor Relations department will of be available after this event if you have any doubts or more specific questions. And you can use the e mail that you have sathirarova.com. And now I'd like to hand over to the audience and see if there are any questions from the floor. Hello. Good morning. Alejandro Vignell from Investor Securities. First of all, I would like to thank you for the presentation. It's been an excellent and very complete the presentation. Just two questions, and I'm sure there'll be more questions for my colleagues. The first question is about of Your preference in terms of asset rotation that you mentioned in the presentation to achieve that almost 0 recourse debt in the year 2025. What's your preference? Divestment at holding level, country level or at Safir Concepciones, Colombia, Italy or at Specific asset level, whether it would be, for example, Pedimentana? That's the first question. And the second question, In that free cash flow of €250,000,000 that you mentioned in your presentation, which you stated is very robust, can you explain the risks In currency terms, the because of course, there's Latin American currencies in 2021 have displayed great volatility and also the inflation factor, How could that also impact FC fee in that $250,000,000 that you mentioned? Thank you very much, Alejandro. Well, perhaps we can start ruling things out. We said in the presentation We will continue with what we've always done in terms of asset rotation because from our track record, you can see that things have always gone well. I understand your question, but we're not going to divest anything in Safir Concessionis and we're not going to list it on the stock market because we don't believe That's the way forward. It wouldn't really provide us with any value. Things are going well for us based on our asset rotation system. And if there was any change, we would probably announce this here. It may not be prudent, of course, But perhaps, like in Chile, we've always had minority stakes in projects or like in Guadalfesa, Well, we are also participating in management, but the majority percent stake corresponds to sale. But what we've of over the last 5 years is the same as what we're going to do from today forward. And the second question is about cash flow dividends And how they may be impacted by currency variations and inflation? Well, Rafael or Carlos can complement my response, but I think that inflation favors many of these concessions, long live inflation in that respect. And why is that? Well, because Income is mostly linked to inflation and costs, which tend to be equivalent to 20%, 25%. If Income is 100,000,000 and inflation is 5%, and that's 105% and costs equivalent to 20% of those 100,000,000 that would be 21,000,000 the surplus would be 84,000,000 So inflation always favors that valuation, which we didn't take into account. We didn't take into account any seasonality or any structure whether the inflation is structural in nature. We didn't take That into accounts and evaluations, but it does have a favorable impact. It's sure that well, we don't believe that there's going to be a significant impact, but it's Important to bear one thing in mind. When we invest in the event of depreciation, that is favorable. When we have dividends, it is unfavorable. But sometimes these things offset one another and that's very important. And I'm not sure if Carlos or Rafael would like to add anything more. But I think the situation regarding inflation is very clear. It's a lever. It's a driver. We want those contracts, which are indexed against inflation. The greater and the higher inflation, the better things are for us. We've closed all the terms and the agreements and anything that will allow us to increase our income will be favorable. And of [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] On the other side, we also have to contribute from our side. Obviously, we have to contribute resources for projects and that entails cost. It's true, though, that in recent quarters, they it's behaved much more positively, much more favorably. But in the case of the models that we've delivered, there is also capability to capture the sensitivity of all of these parameters, inflation being one of them. Luis Plietar, I've got 3 questions. Well, you gave a clear explanation about the €250,000,000 and what you're going to use it in can you hear me now? Yes, thank you. Could you speak closer to the microphone? My question is as follows. You clearly explained the €735,000,000 that is going to be used basically in reducing debt of new investments, but you also referred to an important variable, which is shareholder remuneration. I would like to know if there's going to be any change in approach on that side in the coming years. The second question is a little bit more technical about valuation aspects and I would like To know what has been dollarized in Latin America in currency terms and what assumption of perpetual devaluation you June by contract per year, whether these are indexed against the inflation differentials between countries. How do you take into account the FX impacts? And finally, I think you referred to carbon neutral by the year 2,050 for the entire company. And my question is, in that respect, isn't that a little ambitious? I'm ignorant in this respect. I understand that there are a series of companies in the Cement and Heavy Industry segments that of Produce a lot of emissions, and they're talking about 0 neutral by the year 2,050. Don't you think that you should be trying to of Well, first of all, regarding your question about shareholder remuneration. It's possible there may be a change in our strategy, But it will be probably closer to the end of that cycle. And we expect that the reduction of debt will probably happen much earlier than that. So, if there is a change in approach towards shareholder remuneration, that will probably be towards the end of that cycle. As regards to dollarization of Well, in relation to investors, that's a very technical aspect. And we can provide you with the details and they can give you full information and full explanation about the whole issue of currency substitution. We would have to review models. But in general, 60% of our revenues are in of our income is in euros or dollars. And Marta is going to answer the question about whether we should be more ambitious regarding achieving that 0 carbon milestone of By the year 2,050, I thought we were already ambitious anyway, but anyway, yes. Our aim is to be 0 is to be carbon neutral before 2,050. We are aware that our value chain is highly fragmented, so we're doing everything possible to try to drive everything in that value chain and hence we would like to achieve that goal before 2,050. But as I mentioned, we have intermediary objectives of 50% less by the year 2,035 and another reduction by the year 2025. Thank you, Martijn. Good morning. Victor from Societe Generale. Thank you very much for your time and the presentation. I've got two questions. The first question is a request for clarification. When you mentioned this debt of €100,000,000 And you have I think you also mentioned there a different I'm sorry, the gentleman, the Chairman, could you please take away your microphone because there's interference? Thank you. And speak close to the microphone. Yes, when you look at the aim of €100,000,000 of net debt for the year 2025, If I understood correctly, that includes €250,000,000 in the period of growth in CapEx, Which is between the difference between equity committed and the $150,000,000 that you mentioned. I just want to confirm those figures. And secondly, apart from Manuel's confirmation of debt or recourse debt at the end of the year below €200,000,000 750,000,000 I seem to remember from one slide, I think it was Slide 33, that the difference in the year 2022 of dissidents to be received from concessions, In other words, equity committed is relatively low. So from the slides that you showed, the FC fee that year, the recurrent FC fee that year from concessions and contracting is low. Could it be would it be correct to say that asset debt. So, the debt rotation for debt to significantly be reduced by the year 2022, would for it to be concentrated in that year? Would that would it be correct to say that? Well, I'll answer the first question, yes, about the $150,000,000 Yes, I'd just like to confirm that that's correct. The investment will be reduced Or the spread or differential between the $750,000,000 the concessions will be invested and the dividend amount, that amount will be used to reduce recall's of The second question, I think I said this before. Since we have the 3 levers for reduction of debt, 3 clear levers, there may be one more, but I can tell you that by the year 2020 '22, the debt reduction will be greater than 2023. And in 2023, there'll be more reduction than in of [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] 24 and then in 2025, inversely proportional to what was mentioned by the colleague before regarding the possibility of changing shareholder remuneration policy. Jean Safin from Banco Santander. I have three questions. The first question, It's the inevitable question, but somebody's got to ask it in these type of events. At the end of the day, ending the year at 3%, What is the opportunity cost of not fully reducing exposure of Brepsol, Bearing in mind that this is something that still penalizes Sathir enormously in the markets. That's the first question. The second question? Well, I do believe that Carlos has already answered this question. But considering your pipeline, I understand that this is €3,000,000,000 new concessions, is that right? I think that Rafael gave that figure. Would that entail an equity investment of 600,000,000 Well, you have to remember that that's over 5 years. Equity contributions are phased over time. So of So, almost €350,000,000 per year. So, when would you do this? Because this is new. We're talking about 2023, 2024, 2025 or when? Yes, it's cyclical. We currently have a commitment of 480,000,000 approximately. 750 is what we announced before for the whole period, depending on the awards that we receive and also the needs of the contracts. And they will determine how equity is contributed. Normally, equity is contributed during the 1st 3 years. If we were awarded a project, then we would contribute equity next year, the following year and the 3rd year. And that's the way it's phased out in the process. The third question? It's a technical question, but it's related to the valuation you mentioned. I seem to remember that there was certain assets that would have to be refinanced in the previous valuation you gave. And if I remember correctly, that was in Rumi Chaka Pasto. And in the case of the dividend data, I think that Colombia would contribute more dividends in 2023 Due to this refinancing, so what has changed there? Could you please explain that? I know it's a rather technical question, but I would be grateful for an answer. Well, I'm not sure who would like to answer the question. I'll clarify the question about Repsol. With Repsol, We have managed something that we came across in 2011. I'll try to summarize what's happened. At the end of the day, when oil prices plummeted and Repsol share prices were affected. We gradually covered positions the company's largest developer of the company's largest supplier. And coverage was carried out over various years to avoid having to perform a single light lump sum investment. So, I think that the deadline was the year 2021. That was the over diet disinvestment. Then that 3% is in 2023, 2024 and 2025. All we've done now is announce this in due time, sufficient clean time, and the Board of Directors will then decide yes or no. But we wanted to announce this with due time. And that's the reason why we gave and made this announcement 3 or 4 months in advance. It was simply to cover our backs, Bearing in mind what we did in the past. And also, we don't want to have to pay up money prematurely. And the second question, I'm not sure if that's been answered by Rafael or not. I'm sorry, we cannot hear the gentleman. Yes. In addition to equity committed, 450,000,000 already committed and that 3,000,000,000 is the differential, the spread. But the €3,000,000,000 includes debt. That's investment in debt. That's right, correct. And And I think the final question is extremely technical. So, perhaps what we can do is send you an answer after we've managed to discuss this. Well, this was on the 31st December of 2021, and the refinancing of Romichakapasto will be carried out in the coming months. I'm sorry, we didn't hear the question because the gentleman wasn't using a microphone. Yes, I think the calculation hypothesis was presented in our presentation. Any further questions? Yes, one there at the back. Luis Piero again. You also set a investment threshold or ceiling for certain projects. What would happen given all of these simulation packages that are being [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Provided in the target markets, the pipeline actually increases tremendously or that you have a much higher success rate than in the past. Could you carry out a capital increase? Because it seemed that the figure was rather short for the next 3 or 4 years, If things go much, much better, of course. We always try to look at what we've done so far. We've gone from a position before 2015 that was rather complicated and gradually improved of since 2015 as we've rolled out our strategic plan, but we've never missed a single opportunity If we really believe that, that opportunity was a good opportunity and we've used many mechanisms such as capital increases. If we look at What we've done with asset rotation, we've divested. I'm referring from the previous period. If you look at the previous period, you'll always identify the use of many mechanisms, but we don't want to take to miss any of these opportunities. And if necessary, we'll find a partner to generate value. Of Alejandro Gill from Securities as well. Well, since we have people from the construction business here. A question we often receive from investors is about the impacts that the increase in commodities and raw material prices of having on projects and also the construction margins that companies are obtaining. That's the first question. And the second is about the, Let's say claims, Panama, etcetera. And Well, as regards to raw materials, it's true that raw material prices do occasionally increase and quite a lot of that. But It's important to clarify four points. Firstly, of Construction accounts for 10% of the group's GDP, let's EBITDA, sorry. Its impact, however, is limited. And within Safir Construccion, there are four points that you have to bear in mind. First of all, more than half of the projects are for concessions. You've also seen from the presentation that the large majority of our star projects are commissioned of or will commission next year in 2022. So, we the more material prices will not influence because everything's been done. Safir and all major groups have centralized procurements, groups or units or divisions that procure in the long term. So again, if the impact will last for 5 years, well, there will be an impact. But in the event of timely impacts, the impact is really, really insignificant. Thirdly, there are certain contracts, quite a few contracts in which prices are reviewed. And many administrations are currently studying a formula for a specific price review The Board will carry it out one moment in time to redress this type of impact. Fourthly, As explained on many occasions, in order to mitigate or limit the Construction Division's risks, Given the problems of seasonality, we're moving more towards open book type contracts where there's 0 risk. The risk is assumed entirely by the developer or the owner in the private sector because in this way, you can also Include a fee for general expenses, but it's a bit like the pandemic. It affects everyone if we look at raw material prices. But we the impact on us has been limited, and we've managed to control it. It's been absorbed by the company. But again, nobody knows what's going to happen in the future. But at present, it's not a serious problem for our company. I'm not sure if there are any more questions. Yes, and also the question about Panama. Okay. Well, the forecast is until 2022, 'twenty three, there will be no final sentence regarding Panama. And if you Just summarizing the situation in Panama, we're talking about €30,000,000 or €40,000,000 in the cost of In lawyers' cost over the next couple of years, there are currently $350,000,000 in claims, plus We've never mentioned this before. A new Sentence, which involves the state of Panama, not the Panama Canal, which again, of course, It was the body which contracted that work, the Panama Canal project. Of This claim is related to the protection of that investment. So, Safir has done this exclusively. And the amount may be significant, approximately $1,000,000,000 that claim proceedings are already underway. Again, nobody knows what's going to happen. It's a slow process, but it looks as if things are Evolving favorably. That's all I can really tell you regarding Panama. Any further questions? Fernando, I believe that you have a question, right? Yes, I have two questions, as a matter of fact. As for debt reduction. I believe that you have placed more emphasis on this matter vis a vis the prior plan. Are you planning to do some additional refinancing of [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Or some kind of, for example, use of derivatives or monetization of derivatives as you did in the past? And question number 2, Regarding construction, you mentioned that more focus should be placed on cost Plus, what about construction margins this year taking into account cost refinancing and taking into account the upside of the new mix of contracts. And I have another question about the sale of assets. Let me apologize for going [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Back to that point, even though you were quite specific about it. I understand that you want to get management reducing of some of your stake. Is that right? In answering question number 1, I didn't quite understand the question, Fernando. Could you please clarify it further? Yes, sure, Manuel. What I'm trying to say is whether as part of your debt reduction targets. You're planning to engage in similar refinancing transactions with regards to your Recourse Debt. I believe that you have €25,000,000 in Repsol Stakes, which provides you with some price exposure. When are you going to monetize all that? Well, I believe that in the previous Financial Results presentation, I talked about all of our levers. Of course, Repsol is one lever that is already contributing some income that will be used to reduce debt. We will of course use all of the mechanisms available in order to continue doing that. And we will also have another derivative of the should there be a significant fluctuation in terms of valuation prices, for example, We would use our residual amount coming from that stake. Sasir Medio Ambiente, JD successfully into stages for a total amount of 160,000,000. And we could continue doing so, of course, When possible, provided that the conditions allow so. As for construction, Let me ask Pedro Simuenza, who is the CEO of that division, to answer that Question, in other words, let's see whether I agree with his opinion. So he's responsible for Sathiya Infrastructura So what do you think about the evolution of your division or construction margin performance? [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Well, I believe that he knows the answer already to this question, yes. But what about the rest of the audience? So as I said already, we have tried to reach a balance in our portfolio. We are right now at 60% in the case of concessions and 40% for direct works. And as for the latter, we are controlling risks ZAPTICS. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Very thoroughly across countries. We left Africa. We sold our business in Angola and Mozambique or of We are reducing our presence in the Middle East. There are other countries where we feel more comfortable and that's where we are focusing, especially by engaging in collaborative agreements, of Collaborative agreements, these are and kind of typical contracts in English speaking countries. These are contracts set at a fixed price. So you work collaboratively with the client and you can benefit from some bonds due to the savings achieved. So that's our strategy at this point. But these collaborative agreements is what we called NEG or open book or NEG in Anglo Saxon Countries. So I fully agree with him. We were just awarded a contract in Lima. This is a direct works contract for the airport of Lima of for a private concessionaire. This is contract where price will be reviewed. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Raw materials will not have therefore an impact on that contract. And we remember never engaging in contracts that are not Too complex. And as for whether we want to keep our management approach, we like having a controlling interest. In Chile, for example, we have 2 partners for each asset. We also have another panel in the holding company. Therefore, we have management capacity. So we like having management and decision making capacity. That's why we're always trying to pick our partners. So we are all on the same page. We do this with those assets that we consider that still have an upside. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] I have 3 additional questions. These will be my last questions. Could you please of [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Take off your face mask because otherwise, I can hardly hear you. That's fine. First question. I was rather surprised when you spoke about [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Your concession valuations, it seems that there is no negative impact coming from COVID. I'm asking about those I'm asking about concessions because here there is always a Could you elaborate further on that matter? And the second question, Going back to Slide 31, you spoke about some percentages. I understand that those percentages are tied to the value of concessions and the number of projects. That is to say 85% of there's an 85% Sorry, I didn't quite understand the second question, says the Chairman. Did you? Okay. Did you understand the question? Okay. So please go on with the 3rd question. And as for But along the lines of this question and also with regards to Slide 31, since there is mitigation risk involved. How do you apply formula? Because perhaps by And the maturity date of the project as you did in Colombia because it It seems that there you can extend contractor terms for 5 years. So my question is what about fixed payments? Let's suppose that in 5 years' time, there is another COVID pandemic. I hope it's not going to happen. But what about the fixed cash flows that concessions will be collecting without having to go through this process, but without Building out receivables in those concessions. Okay. In answering the first question, we didn't include the COVID impact because as MARINA stated we have a 4% exposure to demand risk. Therefore, actually, We were not significantly hit by COVID. The second question will be answered by Carlos. Okay. So we showed pie chart broken down by income. Well, I believe that you're talking specifically about Colombia and about this 5 year mechanisms in place. Well, we already have a financing line that has been designed according to which if you do not raise the difference, of the the remaining amount is covered and the authorities will have to pay for the spread. So all of our financial structure takes into account other situations like, for example, COVID, all that is reflected in our cash flows outlook. Well, [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Could you please elaborate further on cash flows that do not actually Hinge upon volumes. Would that be possible? Well, usually, You have contracts normally have different terms and conditions. We can't provide you with that information, but here we are talking about a 0 value because if without risk mitigation clauses, we cannot sign any contracts whatsoever. If we leave term contract societies because they do not set out any risk mitigation clauses, we have only 4% of those of [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] And in Spain, I mean, we can provide you with that information, but actually, I don't think that it's going to be Revealing at all. Again, unless our contracts contain specific risk mitigation clauses, we [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] This is Victor again. Well, based on your presentation, You said that in 2024, Italy will account for the company's current market cap without debt. So in that context and in view of somebody trying to acquire the company, Based on your presentation, do you think that the group might Include another partner or bring another partner in on board in order to block such transaction. Well, answering such a question is Kind of far fetched because we are talking about a decision that will have to be of [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Made by the Board of Directors. We have 38% of capital. That's a capital that is represented on the Board of Directors. That's not part of our outlook for the time being. If the situation arises at some point down the road, we will have to consider such a scenario. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] If there are no additional questions in the room, let me now read aloud the questions that came in via webcast. The first question is about Chile. Do you think that the political context in the country could affect the company's future plans for the of Well, in Chile, Apart from, well, all the social turmoil that was Already controlled. There were 2 other developments that are worth mentioning. About this, in order to enact a new national constitution, certain parliamentary results should be evidenced. There are 2 there will be general elections in the country in 2 months' time. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] The 2 main parties are center right and right wing parties. So both parties are central again and right wing parties. So I believe that once And given the country's context, with a population of 14,000,000 people, Chile is a big country, lengthwise mainly. And it's also One of the projects that has proven to have one of the most successful concession projects in the world. They have been able to organize the country Without much budgetary allocation. And right now, they are doing they are developing some social and hospital infrastructure that is also quite solid. So right now, we already have a significant pipeline in Chile. So to be honest, in the short and medium term, I don't think we are going to face any major issues in the country. Next question. As Carlos spoke about cash flow, there's a question about those €735,000,000 Are you including a rotation of the U. S. Dollar in that amount? 2nd, are you including some upside coming from Panama or from Repsol Derivatives? And the third question is the following. Once the net recourse debt amounts to EUR 100,000,000 by 2025, [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Where will the group allocate all of the cash flow that will be generated subsequently? Well, those EUR 735,000,000 do not include any asset rotation. That's what the group's cash cash flow generation, the business cash flow generation. So Panama or Repsol of have not been included there. They will be used in order to reduce debt, but that amount has not been reflected in the 735,000,000 Let me answer the 3rd question, which is tied to another question concerning shareholder remuneration and growth. With regards to Chile and Italy, how do we deal with non controlling interests or controlling interests in Chile and Italy? Based on our EBITDA forecasts, we are using partial or total consolidation for that purpose. As for accounting consolidation. This affects both our revenue and EBITDA. In the case of Chile, all projects Are recognized under consolidation except for ABO. We go on a project by project basis. ABO It's not recognized in our revenue and EBITDA figures because we have a 50% balance here. So we go For project by project approach, in the case of the Panama Canal, which is the most important infrastructure project in history and in the world, Is set at 0 and we were not able to comply because of the arguments we all know. The next question is about refinancing. We have included some model refinancing. So the question is whether our portfolio can still be further refinanced. During the presentation, I believe this was already mentioned. But actually, we should be a little bit more specific about the refinancing we of [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] I believe that this was made quite clear during the presentation. Our company's leveraging capacity, Except for the projects that will be refinanced have not been considered. We saw some coverage ratios that Maria explained. So I believe that we still have some additional leeway here in order to do intelligent management. Of [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Maria, would you like to add anything in this respect? Not on my edge. So I believe that [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Other questions have already been answered. There are other more technical questions that will be answered later of by the Investor Relations department. And now let me give the floor back to the Chairman. Well, let me extend our Heartfelt appreciation to all of you. Please do remain in touch with the Investors Relations department of And to the members of the Board of Directors for any additional questions you may have. Thank you very much for attending this Investor Day, and we look forward Trumeten. You all again at the next Investor Day. Thank you very

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