Earnings Call: H2 2017

Mar 2, 2018

Summary

FY17 reported profit and EBITDA rose, but recurring results were pressured by drought and regulation. Debt fell, renewables expanded, and management reaffirmed the €0.19 dividend floor while expecting 2018 leverage of 3.5x.

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to EDP 2017 year-end result. At this time, all participants are in listen-only mode. There will be a presentation followed by the question and answer session, at which time you will be able to submit questions via the web. There will be a Q&A box at the bottom right corner of your screen. You can type your question and click send to submit it. I must advise you that this conference is being recorded today, Friday, 22nd of March 2018. I would like to hand the conference over to our speaker today, Mr. António Mexia, CEO of EDP. Please go ahead, sir. Thank you very much. Good morning, everybody. Thanks for being present here on the conference for about the 2017 results. I will go over the key highlights. I will also talk a little bit about the future, but especially about what is our vision of this resilient business model of EDP. Let's start with the key highlights. The first word that I would like to choose is resilience. Resilience in a difficult context. We are seeing our EBITDA increasing by 6% year-on-year, to around EUR 4 billion. Following EUR 500 million on a positive non-recurring results, which, of course, include the gain of the very successful disposal on Naturgas at attractive valuation multiples, clearly crystallizing value for shareholders. At recurring 1, our EBITDA fell by 5% to EUR 3.5 billion, clearly, strongly paralyzed by the severe drought in Iberia, which has a negative impact of around EUR 300 million. It is a huge impact on the low hydro last year, and also by some negative regulatory developments in Portugal. On the positive side, we are continuing delivering our growth strategy focused on renewables, with commissioning of 600 MW of new wind and solar capacity. On efficiency savings of our OPEX program were 26% above the target, achieving more than EUR 100 million. I think it is a very impressive figure. Moreover, we have cut our net debt significantly. A 13% decline to EUR 13.9 billion, which led to an adjusted net debt to recurring EBITDA clear improvement to 3.7 times, even including the adverse impact from low hydro production. This compares, as you remind, with 4 times in 2016. The decline in our debt was more meaningful in the last part of the year. This combined with a reduction of our average cost of debt from 4.4% to 4.1%. It resulted in a 13% reduction of our net interest costs, a trend that is expected to continue over this year. Overall, net profit grew 16% year-on-year to EUR 1.1 billion, while our recurring net profit decreased by 8% to EUR 845 million, impacted by the aforementioned abnormally low hydro in the period. A note important regarding 2017 dividend, the management is proposing to our AGM, which will take place on the next 5th of April, a dividend per share of EUR 0.19, fully in cash. This is expected to be paid in May, in line with our well-known predictable dividend policy. Let's move to slide 2, where clearly I would like to stress the fact that our portfolio diversification allowed this achievement of the guidance. During the first quarter of 2017, the drought intensified with a larger than anticipated magnitude. As a result, the first quarter alone represented a negative impact of EUR 100 million, taking recurring EBITDA and net profit in 2017 to the low end of our previous guidance range, which we are, as you see, in the range. Having said this, we saw once again the value of portfolio diversification with strong performance of renewable, strong performance in Brazil, and overall operating cost giving some support. Finally, net debt in 2017 was below our guidance as a result of the cash-in in the first quarter of a total amount of EUR 1.2 billion pending from the third quarter, namely, the refund of VAT in Spain, the conclusion of the tax asset sales in Portugal, and finally, the collection of tax equity deals for 2017 renewables project in U.S. I think it's good news, especially with the uncertainty that was hanging there at that moment, that by the way, is no longer the case. Moving to slide 3, what do we see? The idea that I really want to convey is the sound performance of recurring EBITDA, excluding weather effects. Things that depend upon us, basically. Focusing, let's see. I would like to start by highlighting the EDPR EBITDA, which already represents nearly 40% of the group, growing by 17%, supported by a 9% increase in average capacity, as you know, mainly in U.S., Mexico, and Brazil. But the performance in 2017 benefited also from stronger winds resources and high efficiency, supported by own initiatives and tight cost control. As you know also, at EDPR, we delivered the first farm down in our U.K. offshore project. So both in pipeline efficiency, farm downs, time to market, everything went well in renewables. Regulated networks in Iberia, as expected, posted a slight decline following what, EUR 83 million negative impact from the deconsolidation of gas distribution at year. This was partially compensated by our electricity distribution network, posting efficiency enhancement and previous years adjusted. Going into Brazil, we see EBITDA growing 14% in EUR terms, including a 7% positive impact from Forex. Locally, EBITDA rose 8%, driven by a successful integrated hedging strategy for the old portfolio, which allowed to mitigate the effect of weak hydro levels. So I think that very good job was done here, but also in terms of efficiency, in terms of delivering the projects on time or even before time, like the hydro, and also remind the performance of Pecém with an average availability of 92% that is above the regulatory threshold of 90%. So clearly, a huge turnaround on Pecém. Finally, on generation and supply and EBITDA. We see a decline by 42%, penalized by what we have mentioned, the weak hydro resources, higher fuel costs, and adverse regulatory changes that I will explain in more detail, and I'm sure that there will be questions about. Overall, what we see, an EBITDA with a positive contribution, strong renewables capacity growth, efficiency improvements, and Brazil, especially on the risk management, partially mitigating the impact from severe droughts and with the consolidation of gas network in Iberia. All in all, in a normal 2017 hydro, we would have seen a growth at the recurrent EBITDA. So, with a normal hydro year, it would be clearly positive. On slide 4. 2017, just going in more detail in terms of the drought in Iberia. The drought had already materialized in the first nine months. We talked about this in our last conference call. The drought intensified in the first quarter. Hydro production fell 83% short of historical average, driving full year hydro production 53% lower than average. 2017 was one of the four driest years since 1931, and this compares to strong hydro resources in 2016, so very different from 2016. As a result, the negative financial impact of low hydro rose from, as I mentioned, from EUR 200 million in the first nine months to around EUR 300 million for the full year. Looking at 2017 today, January, February, were again dry, but the heavy rain and snow over the last week, and we expect a good March, will finally lead to a clear improvement of hydro conditions in Iberia. In slide 5, regulatory changes to impact 2018 figures. Our 2018 figures will be impacted by the adverse regulatory changes in Portugal that were announced at the end of 2017. The major change on EBITDA is referred to the expected EUR 150 million decline in electricity distribution, regulated revenue, which was preliminarily announced by us in October and finally confirmed on 15th of December. We have now good visibility on regulatory framework for the 2018-2020, during which we will focus on our efficiency levers, mainly reduction of grid losses, our OPEX control, digitalization, to improve profitability. All of this is clear what we have to do, and I will remind that this EUR 150 million, it's not losing value. It's basically in a big chunk, just postponing revenues, for the 10 years instead of the three years, what concerns the stranded costs. In generation business, we will see an increase in taxes, namely the clawback in the actual form, which was changed in August of 2017. These changes should imply an increase of our cost with revise of around EUR 60 million versus 2017. Here, we consider that the current level of taxes is questionable, totally disproportional, and these justify several ongoing appeals, namely in courts. Overall, I would also like to stress these adverse regulatory developments are already fully reflected on earning consensus. Slide 6, capital allocation. I think this is a critical element. I would like to highlight our firm conviction on the visibility on the steady portfolio transformation. Over 2017, we reinforced our commitment to long-term contracted renewables energy. I think this is an important statement. Long-term contracted renewables and visibility on cash flow. We invested around EUR 1.1 billion in renewable assets with long-term contracts, wind and solar, mostly U.S. Hydro and wind capacity in Brazil. We have even there commissioned with more than four months ahead of schedule in São Manoel. We have also reinforced our exposure to renewables, paying EUR 300 million for an initial 5% stake in EDPR through the public tender offer, raising our stake to 82.6%. Also in 2017, we also sold our gas distribution network in Iberia and the minority stake in wind farms in Portugal. The portfolio reshuffling deals in 2017, combined with our consistent growth strategy, is expected to translate into a steady reduction in the rates of Iberia and ARABGA, with remaining markets, mainly U.S. and Brazil, increasing its rate to 60% of our total EBITDA by 2018. I would also highlight EDP Renewables continues to reinforce its role as our major division, which should reach a rate of EBITDA of around 40% this year. We are basically moving investment from areas where we crystallize value, and we have been able, clearly, to create new options in the short term where we create more value for the shareholders. Slide seven. Going into this visibility, 3.1 gigawatts of renewables growth secured for 2018 and the following years. Looking into detail, we have already this 3.1 with PPAs or feed-in tariffs, of which 800 megawatts under construction to be commissioned in 2018. Our main growth market for next year will be the U.S., Canada, Brazil, and some European markets, namely France, Italy, Portugal and Spain. I believe, and I would like to highlight this, in the U.S., our main growth market, the clarification of the tax reform helped PPA and tax equity markets to be back to normal. I think it's important. It's one uncertainty that was hanging there, and now it's gone. On the top of wind onshore and solar, we have also our wind offshore platform with secured projects in U.K., secured project in France, which will be a relevant source of growth post-2020. In the Moray project in U.K., 77% by EDPR, we expect to have a final investment decision during 2018 in order to achieve commissioning in 2022. In fact, the two wind offshore projects, 43% held by EDPR, are in a less mature stage, with the final investment decision expected to occur by 2020 and commissioning expected by 2023. Moreover, we will pursue our asset rotation strategy, our farm-down strategy, whenever it makes sense through minority stakes, or of course, as I mentioned on DOT, a perspective to majority stakes, enhancing the value of assets. I think that we have already discussed this in prior meeting, and I think it's obvious that is the right strategy. Basically, we think that we have strong visibility on growth at very attractive returns. Going into growth in Brazil on the slide eight. Our main growth area is regulated networks in Brazil, in which we have created value through our track record on efficiency improvements and the regulatory frameworks, which are considered reliable and in a favorable macro interest rate cycle. As you remember, we were awarded last April with concessions to build five transmission lines to be fully operational by 2022, which represent an overall investment of nearly EUR 800 million, with an expected return on equity between 12% and 14% in real terms. Compared to our initial assumption, we currently see upside potential regarding the funding cost of this project, given the recent evolution of interest rates in Brazil, and especially on anticipation of the construction schedule of these lines. With our most advanced transmission line projects being currently 17 months ahead of schedule. Of course, it will represent anticipation of EBITDA. More recently, we have announced acquisition of a minority stake in electricity distribution company in the state of Santa Catarina, Celesc. We have already received all the required authorization for the acquisition of 33% of the shares. After which, we plan to launch a voluntary public tender offer for the acquisition of up to 32% of the preferred shares, which will allow us to reach one-third of the total share capital of the company for a total investment of around EUR 100 million, representing an EV/EBITDA of 0.7. This stake will provide us a significant involvement in management decision, giving us opportunities to extract value from potential efficiency improvement. Finally, in this market, we will continue to look for further small size opportunities of portfolio restructuring. Slide nine. Basically, I would like summarizing, saying that I believe that we have a consistent strategy, supported the delivering of the results in 2017 of our commitment, and giving clear visibility for the future. To conclude I think it's the strong message. In order to deliver profitable and focused growth, we count on 3.1 gigawatts of renewable projects already secured. Regulated network growth in Brazil through five new transmission lines and through our equity stake in Celesc. Visibility is the key word. Another important element in our strategy is financial discipline. Our current adjusted net debt/EBITDA is 3.7, supports our investment-grade profile, which will continue to be enhanced by value-creation deals, such as asset rotation and special BOTs, providing a sound capital structure to support the growth. We will also reinforce our efficiency, namely through the execution of the OPEX IV program, targeting to double its outperformance in 2018 to EUR 190 million of annual savings in order to continue to be best-in-class utility on the efficiency front. Overall, basically we maintain our focus on profitability and shareholder return with a firm commitment on dividend policy on a dividend per share of EUR 0.19 as a floor. That makes all the sense giving the visibility on our portfolio and all the asset reshuffling that we have been doing. Thank you. I will pass to Miguel for the more detailed presentation, and I'll come back together with Nuno for the Q&A. Thank you, Antonio. Moving to slide 11, we can see that in 2017, EDP continued investing in renewables. We have commissioned one gigawatt of new hydro with pumping and storage in Portugal, which, as you know, is highly complementary with wind and solar volatility. With this, added also by the 0.6 gigawatts of additional wind and solar capacity, we reach 73% weight of renewable energy in our installed capacity. Regarding production in 2017, which was a very drought year in Iberia, even so, we have achieved a significant weight of renewables, which achieved 55%. Our wind and solar power subsidiary, EDP Renováveis, was the main contributor of our EBITDA in absolute terms. It was also the major contributor in terms of growth, with the recurring EBITDA increasing by EUR 7.2 billion, or 17% year-on-year. This had a significant contribution following the increase of average installed capacity, mostly driven by U.S., Mexico, and Brazil, and also the positive impact from the first farm down in our U.K. wind offshore project, Moray East. Regarding our operations of the regulated energy networks in Iberia, following the disposal of gas distribution in Spain in late July and the gas distribution in Portugal at the beginning of October, we are now fully concentrated in electricity distribution in Portugal and Spain. Here, the recurring EBITDA has increased by 6% on lower OPEX and some adjustments from previous years. Moving to our operations in Brazil. They showed also a positive performance in 2017, with EBITDA in local currency increasing by 8% following the good results from our integrated hedging strategy in energy markets and improved operation performance, namely in Pecém power plant and in our distribution divisions. Finally, the decline of EDP's recurring EBITDA in 2017 was essentially driven by the weak performance of the generation and supply division in Iberia, which shows a 44% decline of recurring EBITDA. This weak performance can be understood by the evolution of some key indicators, namely the decline by 1% of the average selling price to customers, lower hydro production, which has reduced the weight of hydro in our generation mix from 45% to 22%, which together with the increase in fuel costs, justify the increase by 70% of the average fuel mix for the entire generation portfolio. Moreover, we had also a significant increase in regulatory costs in Portugal and Spain by almost EUR 100 million, and a reduction in CMEC-related revenues followed the end of the CMEC annual compensation system since July 2017. The company has also continued to deliver good results regarding control of operating costs. In our Iberian operations, pro forma operating costs fell 1% year-on-year on a comparable basis, even considering some growth of operations, namely the 7% increase in average megawatts and the 2% increase in the number of contracts with customers. In the renewables division, core OPEX per megawatt has also decreased by 1%, as the 8% increase of OPEX was smaller than the 9% increase in average installed capacity. Finally, in Brazil, we have also done well in costs with the operating costs in local currency and in real terms, so inflation adjusted, declining by 1.5%. As the operating costs nominal growth of 2% was below the average inflation in the period of 3.5%. This strong performance has been supported by the success of the corporate-wide efficiency program, OPEX IV, that provided EUR 141 million of savings in 2017, 26% above the initial target. We want to double the outperformance of the program in 2018 from 25 to EUR 50 million. A process that is well on track with additional initiatives already launched, namely the zero-based budgeting in Spain and in our IT division. Also, the recently launched in January of the group-wide digitalization program, EDPX. We have also further steps in terms of HR restructuring program in Iberia, with so far a reduction of 150 FTEs. Some relevant developments regarding remote management of power plants in Iberia, namely recent contracts signed for preventive maintenance. I would like now to move to the financial costs of that performance. We can see that our net interest costs decreased by 13%, continuing to show a clear downward trend on a quarterly basis. Note that this very positive evolution was supported by a decline of net debt, which in 2017 was more concentrated at the end of the year, and also a decline in average cost of debt from 4.4% in 2016 to 4.1% in 2017. Note that the very positive evolution of EDP's currency weighted marginal cost of debt, which stood at 2.8% at the end of 2016, and that declined to 1.9% at the end of 2017, lead us to be confident on further declines on average cost of debt going forward. Regarding recurring net financial costs, which include not only what we have seen previously regarding interest costs, but also financial revenues not directly related to debt, it has showed a more moderate 1% net decline. As the very positive performance in terms of net interest costs with a EUR 100 million decline was mitigated by a reduction in financial revenues, namely the ones related with regulatory receivables due to lower interest rates, and also the ones related to capitalized interest following the full commissioning of hydro plants in Portugal. Moreover, we had also negative impact from Forex and energy market derivatives amounting to EUR 35 million in 2017. At the bottom line, our reported net profit of EUR 1.1 billion in 2017 was significantly impacted by the non-recurrent type items of which we highlight capital gain of Naturgas with an impact of almost EUR 0.6 billion, and some impairments in our coal plants in Portugal and Spain, and regarding EDPR's impairments at some Polish assets. Excluding these non-recurrent items, we can see that the recurring net profit stood at EUR 845 million, which represents an 8% decline year-on-year. This 8% decline is justified, as we saw before, essentially by a decline of recurring EBITDA driven by lower hydro volumes, and also a decline of D&A following the disposal of gas networks and also the extension of wind asset life at EDPR level. Moving to net debt. Our financial leverage showed a very positive evolution, with net debt decreasing by 2% or 13% year-on-year, having a positive impact from the portfolio reshuffling, which includes a combined effect of the disposal of gas distribution in Spain and Portugal, and the investment of EUR 0.3 billion to increase our stake in EDPR from 77.5% to 82.6%. These portfolio reshuffling impacts have a material impact on the improvement of the adjusted net debt to recurring EBITDA ratio, which decreased from four times in 2016 to 3.7 times in 2017, even including the negative hydro impact of EUR 300 million on 2017 recurring EBITDA. Finally, moving to financial liquidity and debt maturity profile. We can see that over 2017, we have made significant developments regarding the extension of average debt maturity and the increase of the weight of fixed debt rates in our portfolio, namely through long-term bond issues above seven years, securitization of tariff deficits, and bond buybacks that we closed in the fourth quarter 2017. By December 2017, we had EUR 6.6 billion of available liquidity, which covers refinancing needs beyond 2019. With this, we will conclude our presentation, and we will have a small stop before we go to the Q&A session. Thank you very much. You will be in music hold while waiting for a Q&A from the web. We will start with the first questions. We have from Jorge Guimarães, Haitong, on our non-recurrent impact on EBITDA in distribution of elections in Spain. Could you elaborate on the regulatory provision in Spain, namely considering your competitors didn't do it? Okay. That's in Spanish. We basically followed, after discussion with the auditors, very simple, what is in the report on the CNMC, and we were prudent in the way that we have provisioned everything that is there, and let's see what happens, but we were on the cautious side. In what concerns, also I believe the reduction costs, what will be the impact on future earnings of EUR 30 million HR provisions? It will be positive, between EUR 8 million and EUR 10 million a year, so less costs of EUR 8 million to EUR 10 million a year. Then we have the questions about impairments. The impairments, it's EUR 105 million in Sines, EUR 91 million in Soto, and EUR 42 million in Poland. The reason in Poland is because of the change on the green certificate rules. Sines and Soto, basically, we have been consistent in the sense that perspective about coal in the medium term has changed, by the way, confirming our vision in what concerns the importance of this mean economy transition. So we have decided, bearing in mind what is the burden today on those coal fire plants, to do these impairments. We have now also a question from Jorge Guimarães, Haitong, and Carolina Dores from Morgan Stanley regarding the clawback. So when and what to expect about new clawback rates in Portugal, and are you expecting to pay EUR 60 million from clawback in 2018? So, as you know, we have paid, on an annual basis, EUR 10 million of clawback in 2017. So we have explained in the presentation since the beginning that the change would be a delta of EUR 60 million compared to the previous year. As you know, we consider this clawback a measure that needs to be revised, and I think that everybody agrees. We don't have a final frame for this, so this is the worst-case scenario. Why? Because when the clawback was introduced, it was to avoid any possible windfall profit in Portugal because of the tax that exists in Spain. But at the same time, you have taxes in Portugal now that you don't have in Spain. Burdens on the generator. So to keep the same level playing field, we need to redesign the clawback as it is today in the new version. So we expect this to be done. We have it here introduced the worst-case scenario. We have then a group of questions that come from Tobias from UBS, Carolina Dores from Morgan Stanley, Aria Iron from Merrill Lynch, Stefano Bezzato from Credit Suisse regarding the outlook for 2018. The questions are concentrated in terms of how do we see the consensus currently for EBITDA and net profit, and also essentially, what are our assumptions for 2018 regarding average financial cost and for 2018. We will be talking about consensus, about also EBITDA recovery on things that were not normal in 2017. Then I will pass to Nuno to talk about financial cost and tax rates. We are comfortable with the consensus compiled by our team, based on estimation of 19 analysts, comfortable with the EBITDA, comfortable with the net profits. By the way, we are talking of a net profit recurrent of EUR 850 million, including the sales tax. But we expect the net debt to be below the consensus that is today at 14.2, we expect to be below. We are already below, and if anything, we would expect a moderate decrease versus the end of 2017, even if 2017 already include the reimbursement of VAT in Spain. So we are comfortable with this, and we expect better in terms of net debt. In what concerns also the question of out of the 300 potential recovery, how much do we think that is currently assumed the consensus? The answer is 200. In other words, we would, in a normal year, we'd have EUR 900 million EBITDA on generation and supply. The consensus now considers around EUR 810 million is the figure that we consider today in our expectations for the year. So already slightly below a normal year. Nuno, tax rates. For 2018, our expectation for financial price is around EUR 600 million for the full year, and the tax rate to be slightly below 20%. Moving to another group of questions on leverage, probably Tobias, UBS, and Caroline Wood from Morgan Stanley. Regarding the leveraging targets, if we think that this current net FTBT level of 3.7 times is a comfortable level, and what is our view of the evolution of this ratio for 2019? We expect the net debt to EBITDA in 2018 to be at 3.5 times. But what I would like to stress is that the leveraging is a commitment. So we will keep the same discipline that is, by the way, translated in the figures of net investment for next year and everything else. Always to be sure that we will be doing asset rotation, asset reshuffling in a way to give visibility to the growth in the right direction, U.S., Brazil, and everything. And at the same time, redeploying the sound base that we got from the disposals in 2017, the clear net disposals, and always to protect the dividend policy that is our very strong commitment to respect this floor and to grow as the business grows. An additional question from Tobias of UBS. Regarding Celesc, what is the strategic rationale for EDP to buy a minority stake in a state-owned company? So, Oi. What makes sense, as you know, we like distribution, and we proved to be one of the first to like transmission in Brazil. The question is, how can we approach opportunities at creating very competitive environments in certain opportunities? Is going through what? Through less obvious path, but clear here we have protected our stake in terms and dividend policy and everything. We, of course, create an option for the privatization of this company. We have also a question from Stefano Bezzato, Credit Suisse on EDPR. Following the 2017 takeover, can we consider the current share of the structure as the final line? Stephan, we don't anticipate any change in 2018. It will be a normal discussion, and the discussion should be about the rate, but not about the formula. The clear answer is there. Also from Stephan, on Spanish regulation. Do you expect any change already in 2018? In relation to the 2019 review, do you expect the return formula to change? It's what I've answered. No changes, normal discussion. It's about the rate and not about the formula. I think I already answered this. Regarding the Naturgas capital gain. First, let's go, Miguel, in order. Renewed years, hedging 2018. I think it's important to talk about this. I'm just following the order of the question that I was sent. For 2000, we have already sales forward the contracted with clients. We have 24 terawatt hours at an average price of EUR 54 per megawatt hour. This does not include natural hedge price in the sales of 6 terawatt hours already in 2018. We have spreads close to 60% of the expected coal output in 2018. For EDPR, the overall portfolio, 94% of their revenues are already fixed. So we have a strong hedging policy for 2018. Now, about capital gain. Yes, question about the capital gain on Naturgas. As far as the Naturgas capital gain, just let try to be clear on this. As you know, the transaction had a firm price plus a deferred price. Both of them are booked. Obviously, the firm price in full and the deferred price at the fair value that the auditor decided to recognize in accounts, which is the majority of the deferred price. So from an accounting standpoint of view, the capital gain and the contingencies are already fully booked. You should not expect any more accounting changes going forward. What we still need, and that is missing, is the EUR 200 million deferred payment in cash, which is to be decided by the buyer when to pay. He has a period of time to pay. He can pay it in one year, or he can go pay as go. But as far as accounting-wise, all the gain has been booked already in 2017. We have more questions essentially on regulated networks from this far is already answered. Also, on the 2018 outlook, already answered. Leverage, we have already referred also. Regulatory issues in Spain. Maybe let's move to Javier Garrido, JP Morgan. On CMEC. In September 2017, ERSE announced that it is estimated that the CMEC revenues were under discussion. So officially is about how is the process? The process is very clear. We have the access finally to this alleged conversation. It is clear that for now, that we have respected the contracts and the law, and we have been communicating this in the right spot. We don't see any issue at this stage in this field, that, by the way, were rules and contracts established in 2004, by law and by contracts. In what concerns also question of wildfires, do we see any risk of needing to pay compensation or fines? No. By the way, we have insurance, but it is clear for us and clear for people involved in this matter that we have nothing to do with this. We have reacted timely. It is clear and non-issue for us now. In what concerns also, I'm giving the page of the dividends. People are asking about the dividend, and Antonelle and others, is the EUR 0.19 dividend a medium-term commitment, or we should expect a revision of dividend policy with the new business plan? Clearly, the only thing that we will not see is a reduction of the 19. The 19 is a very strong commitment as a floor. We see, and I believe that one of the key message that I want to give in my initial presentation is that those, the asset reshuffling, the farm downs, all the asset allocation policy plus efficiency, plus everything, and even including the regulatory discussions and the regulatory deals gives us a very confident positioning for the future that will sustain this dividend policy with the floor of 19. It is not to be questioned. Clearly, we are going to grow it as soon as it makes sense. Additional? We don't have additional questions. I think all the remaining ones were answered. Thank you again for all the questions. I think that I will finish as I started. We have been facing extraordinary impacts. Mainly rain last year. As you see, we are already cautious this year, but we see a recovery. We have already beaten the consensus. We are comfortable with the consensus. We are even better than consensus if you welcome to add to that side. We are firmly committed to our asset allocation policy, and we are firmly committed to our dividend policy. Thank you again, and hope to see you soon. Bye-bye. This concludes our conference today. Thank you for participating. You may now all disconnect.