Operator: Buenos días. Bienvenidos a la presentación de resultados de Dominion. Welcome to Dominion's result presentation. If you want to follow this presentation in English, you can do so selecting the English language on the world icon at the bottom of your screen. Antes de empezar, nos gustaría recordaros que una vez finalicemos la presentación, we will move on to the Q&A. You can send in your questions in writing in the Q section, or you can either speak via the telephone or by raising your hand. Let's start with the disclosure for the presentation. Good morning and thank you very much for attending this financial presentation of Q3 2026.
Patricia Berjón: Yesterday, our board of directors did not only approve the results that show the evolution of these first 9 months of the year, but also gave their approval to a number of changes in the board of directors. Mikel Barandiarán is the Executive Chairman and is going to be replaced by Germán Pradera as from 1 January 2027. I would like to talk about the results, and later on I would like to make a few comments on this process so that we could then move on to your questions on both issues. As regards these first 9 months of the year for Dominion, I would like to deliver a global interpretation of what we consider to be most relevant.
Patricia Berjón: One of the most important things of the quarter, as well as of the rest of the year, is that 90% of the business, which covers the activities of GDE and GDT services, which, as you know, are recurrent, have grown organically compared to the previous period of the year before by 5.2%. In other words, 90% of the business has grown over 5%. As mentioned in previous quarters, the situation of our global uncertainty has slowed down the execution process in the segment of GDT projects, and in 9 months of the fiscal year stands below the figures reported last year, although the portfolio is diversified without cancellation. We cannot forget about the tensions in the Gulf, which is another element that has been taking place throughout 2026 and which affects our activities located in the area and its related industries.
Patricia Berjón: Finally, we have to remember, and we are not talking about performance here, we are in the fiscal year where all of the segments, to a greater or lesser extent, have divestments that have to be taken into account when you compare the data, either divestments carried out during 2025 or this year. This is the end result of the continuous advancement in the simplification of the country covered by our strategic plan. Along these lines, and in this quarter, we have sold our stakes that Dominion had in call center services for operators under the Ampliffica companies. This is a non-core activities with very little impact, but it is important from a personal level because we are removing about 400 people from our periphery. These divestments mean that we have sales figure and EBITDA figures that are lower than the figures reported the previous year.
Patricia Berjón: We are sacrificing the short term so that we can lay down the foundations of the company that we want to become in the long term. Another thing that I would like to point out as regards what has happened in this quarter of the year is that we have been authorized to initiate the commercial operation, COD, of the wind farm of Cerritos as from today. In other words, as from today, Cerritos will close its testing stage and will initiate its operational stage at full capacity, receiving full remuneration for its production. Now let us take a look at the details of this summary. As I said, to analyze the figures and the segments, we have to bear in mind the strategic investments and divestments carried out, which I would like to review.
Patricia Berjón: As regards divestments, we have mainly the sale in December 2025 of the industrial activity in France and the TTB virtual mobile operator portfolio that has been progressively transferred since Q1 2025 and the MasOrange shops in January 2026. We also have, as activities available for sales, the biomass in Argentina, as the sale process started in Q2, and in this quarter we will be eliminating non-core activities. We have our acquisition processes. We have, for instance, the ZCR business in Germany, and in June, a Spanish circular economy company in Spain has diversified our capabilities in terms of waste recovery, industrial waste recovery. The turnover in 9 months, the effect has been -55.6 million EUR, and the effect in terms of EBITDA has been -7.6 million EUR.
Patricia Berjón: In order to correctly interpret our financial statement, we have re-expressed the account at 9 months in 2025 to include the same perimeter as the figures that we are presenting today. With this, we have closed the first 9 months of the year with a business figure that accounts for a positive organic growth of +2% at constant currency, and in these 9 months of 2025. Once we have discounted the inorganic effect, which means it is -7%, and the negative effect of forex that has practically no impact, which is -0.2%, we have maintained positive organic growth, therefore, in a context that is complex, as I said at the beginning. As regards profitability, EBITDA in Q3 stands at 94.6 million EUR, with margins that continue at high levels, 12.5% over sales.
Patricia Berjón: Although there is a lower contribution of the GDT projects in the mix because of the segment with the lowest margins, recurrent businesses like GDE and GDT services are showing a solid behavior, and they are stabilizing the generation of results. The central structure stands at 2.8% over sales, which represent a slight variation in comparison with other quarters, and amortizations have dropped a bit also momentarily compared to previous periods. We have the minority shares, taxes, and interrupted activities maintain very similar levels, and what we have to talk about is the evolution of financial results that have improved globally by 27% compared to the same period of the previous year.
Patricia Berjón: But even so, in order to be able to compare things correctly, we have to bear in mind several factors in terms of the figure reported the previous year, as well as in the case of the figure reported for these 9 first months of the year. We have to take into account the divestments and transfers to discontinued activities that have been carried out. Secondly, we have to take into account the extraordinary effects in both fiscal years, starting off with the year 2025, when we had an impairment of the photovoltaic assets in the Dominican Republic after the sale took place in July 2025. In Q3 of 2026, we have included several extraordinary impacts. For instance, the divestment in the stakes in Ampliffica, which has brought about a correction of minus EUR 2.5 million that is covered by the results and that affect our financial outcomes.
Patricia Berjón: There are also other extraordinary balance sheet costs that affect the net results in an amount of minus EUR 3.7 million, which also are related to the simplification process. Let's say that we have an increase in the total attributable net result that goes from EUR 6 million to EUR 8.2 million in the figure year, and if you take a look at the previous figure, the figure now is 35% higher. Let's see how each one of the businesses has contributed towards this evolution, starting off with GDE, that is our environmental business. This segment closed in the first 9 months with a business figure of EUR 330 million, which represents an organic growth of +4.8%. In this segment, what had a very important impact is the rate of exchange in -3.5%, which explains the increase of 1% observed globally.
Patricia Berjón: As regards profitability, the business has reached a contribution margin of EUR 40 million, and this means that the margin over sales has increased to 12.1% at an aggregate level. GDE accounts for 43% of the sales and 35% of the company's contribution margin. What is really important here is that we have maintained recurrence and growth in both activities and in all geographies, with exception of the Gulf because of the situation that I mentioned at the beginning. In the area of circular economy, this quarter we have signed new recovery contracts for waste in Spain and Latin America, and with a first step in Uruguay. In decarbonization, we have emission control contracts in Asia and multiple thermal efficiency services there, and we are opening up a new geography with a contract in Panama.
Patricia Berjón: GDT services, and this is the segment that is focused on electricity grids and telecommunication grids, and it closes this Q3 with a business figure of EUR 361.5 million, meaning that the organic growth has been +5.5%, and this is the segment that has grown most. This segment, contrary to GDE, has recorded a positive impact of the exchange rate, and you can see the different geographic distribution of both businesses in this period. GDE has a negative impact on the exchange rate, and with currencies like the American dollar, the India rupee, or the BRL, and GDT services is exposed to Latin American currencies and has a positive effect. The contribution margin reached 17.4% in the first 9 months of 2026, which also covers the high operational profitability that we can achieve in this business.
Patricia Berjón: This segment has concentrated most of the divestments and therefore has the biggest impact because of the sale of former non-strategic B2C businesses. This GDT services represent a major opportunity because we have lots of capabilities and because of the investments that are going to be made in Spain and other geographies in terms of the electrical grids and electrification. Our position is excellent, and we are signing new contracts like the one that has been signed this quarter for medium voltage lines for industrial clients in Spain. Our experience is fundamental to manage in Latin America our adaptation to the new owners of the grids, and we are mainly talking about telecommunication networks after the sale that Telefónica did in the recent months, and now these are in hands of Millicom, the operators of Ecuador, Colombia, and Chile, and in Integra.
Patricia Berjón: Finally, the GDT projects, this closes 9 months of activity with less activities than last year, and this has to do because of the global uncertainty. Also, the classification in the previous quarter of biomass as something that has to be sold also has an impact on the figures. This means that at 9 months, we have EUR 26 million less and EUR 8 million less in turnover and in the contribution margin respectively. We consider it very relevant that we have maintained the solidity of our portfolio with a backlog figure of EUR 364 million, once again without any cancellations of projects until now. We have also signed and begun the execution of a contract for the technological integration of the civil communications infrastructure of the Bilbao Exhibition Centre.
Patricia Berjón: I said at the beginning, it has been a positive evolution with very strong organic growth of the recurrent part of the business in GDE and GDT services that shows the recurrence and the diversification that has been addressed by the company during the strategic plan. Secondly, the first 9 months of the year that are affected by low level of execution of GDT projects and because of the situation in the Gulf that is affecting GDE. Now, as regards the succession process, we want to point out that this succession is to be an internal operation of a person that has been working for Dominion for 14 years at the highest possible level and who has worked in different countries and different corporate and business areas.
Patricia Berjón: Germán Pradera joined the company in 2012, and after spending several years in Peru, he participated in our listing on the stock exchange, and he has directed the areas of service business and GDE. Therefore, he has in-depth knowledge of the company, and he knows our culture, and he knows the operational areas that are going to have the bigger weight in our future. Apart from that, as regards the timing, we have taken into account the natural passage of time of our current CEO will turn 65, although he does not look 65, or he will turn 65 next year, and this coincides with the new strategic plan. It makes sense that who is going to be carrying out as the CEO should lead it from the very beginning. In this context, we are carrying out this change.
Patricia Berjón: We're making this change, and this will enter into effect as from 1 January next year. The public presentation of our plan 2027-29 will be carried out in the first part of the year once we close the year 2026. Apart from that, the fact that Mikel is now going to become the Executive Chairman means that we are going to fully support in the transition the new CEO, and Mikel Barandiarán will carry on defining the strategy and lead anything related to corporate relations. Thank you very much for your attention, and now we're going to move on to your questions. Thank you. Well, let's move on to the questions. If you're connected via Zoom, you can ask in writing through the questions and answers section or just raise your hand, and we will give you the floor.
Carlos Treviño: Carlos Treviño from Banco Santander first. Please remember to switch on your microphone. Carlos, good morning. I'm sorry, we can't hear you. Well, let's move on to the next person. Hello? Yes, we can hear you now loud and clear.
Carlos Treviño: Morning. Firstly, all the very best for Mikel and for his colleague, Germán. I have three questions. Could you please give us a reference on where do you think that EBITDA could finish in the year? You said of the EUR 150 million, you could expect EUR 125 million came from recurrent businesses and EUR 25 million from projects. We've accumulated EUR 13 million in 9 months. What do you think? How do you think that you'll be ending the year in terms of EBITDA? The second question has to do with projects.
Carlos Treviño: Could you say something about what you think about how the business is going to evolve in Q4, but especially in 2027, bearing in mind that the backlog has been dropping for 5 quarters in a row? If we look at the new entry of orders in the backlog, the accumulated figure would only be EUR 18 million. The third question has to do with the B2C business. In the presentation, you say that you're reaching the end of the optimization process for the B2C business. Could you please explain what this phase actually means? Could you give me the perimeter too, the perimeter you're contemplating for the future as regards maintaining the B2C business? Thank you very much.
[Company Representative] (Dominion): Hello, Carlos. This is Roberto. Patricia and myself are going to be answering.
[Company Representative] (Dominion): Giving you a figure, we're working with a forecast now and giving you an EBITDA closure figure for the year, and I think that this is not the right time. Obviously, we have somewhat less execution in projects, as you pointed out, and this can be felt in the closure. We know what seasonality does, and we also know there are lots of companies and corporations that close their budgets at the end of the year, so do governments. I think that Q4 could be active as regards decisions and as regards being able to have a better visibility of the portfolio and its execution. I think that we've had low levels of execution for the couple of years, and together with the plan, I think that in 2027, what we should do is reactivate operations and projects and so on and so forth.
[Company Representative] (Dominion): But obviously, giving you a figure now, and therefore EBITDA for the year is too premature. We will have more visibility in the future, and we will see what it is we can say about that. Then as regards B2C, what remains is very little. It is not very relevant, really. We think that we only have what has to do with Phone House, and what we can say is that in this strategic plan, you know that this is not going to be an absolutely core activity of the company. Although it is true that in parallel, we do believe that we have focused on generating value.
[Company Representative] (Dominion): In other words, Phone House is generating value or worth, but the thing is that strategically, it is not something in which we think that the future is very clear in terms of grids and the environmental area, et cetera. Having said that, we will be open to operations, or we will be also open to new formulas that can contribute more value in Phone House. Who knows if in the strategic plan, because, well, it is irrelevant really to carry out a corporate process, but we will see what happens. Everything is currently being studied, and we will see what we do. It will be an absolutely minor issue, and that we will hardly be talking about in the future.
[Company Representative] (Dominion): Thank you very much. What about 2027? Any comments on how you see the project?
[Company Representative] (Dominion): Well, considering that the arrival of new orders has been pretty poor in the accumulated figures for the first 9 months of the year. We are positive for 2027 because we believe that Q4 is going to give us more visibility in operations in Chile, in the Dominican Republic, and there are many other projects that still have to be carried out, and also new operations.
[Company Representative] (Dominion): We believe that the commercial side of things, or that good news is going to be coming along, and I think that we should do better. Well, yes, there is lots of commercial activity. What you said about the portfolio is also something important for us, and we cannot continue adding on things to the portfolio now that we are at these levels.
Patricia Berjón: But as Roberto pointed out, and as regards 2027, we think that there are significant opportunities that could be materialized through the data center world, which has less weight in our previous portfolios, but which we are now working on intensely. I think that this is where part of that recovery could come from in 2027, or at least that is what we hope and expect, or expect and hope.
Patricia Berjón: Thank you very much.
Patricia Berjón: Thank you.
Patricia Berjón: Thank you very much, Carlos. Okay, we are going to give the floor to Luis Padrón. Please remember that you have to switch on your microphone, Luis. Thank you.
Luis Padrón: Hello, can you hear me?
Patricia Berjón: Yes, loud and clear.
Luis Padrón: Yeah. Hello. Good morning. How are you? Well, I have got several questions.
Luis Padrón: Firstly, in services, there is a very significant disaggregation in growth in sales relative to the growth that was reported in the H1 of the year. Is this an issue of comparability, or what do you think this is due to? Why do you think there has been a slowdown here? Then we have the question of the sale of Cerritos and biomass. How do things stand? Could you please update this info? Then as regards the strategic plan, if possible, could you be a little bit more specific about how you are going to be doing this? You are talking about the H1 of the year, so it would be at the end of Q1 or Q2, or how does this one work out exactly? Thank you.
Patricia Berjón: Well, on the one hand, yes, there is something that has to do with comparability because in the Q1 of services, 2025 was especially strong, if you look, if you analyze each quarter. Then in Q3, well, this is something that I mentioned before. You know that there have been divestment processes of Telefónica in Latin America, and in Peru, there has also been a divestment in the networks. These processes, well, we maintain our contracts, but let us say that things are changing because now these properties are in the hands of other companies, and this, I think, could have an effect in certain quarters. In any case, we are managing this change in ownership, and we are doing so in a natural manner, and we are making all the necessary adjustments.
Patricia Berjón: I believe that the health of the growth in GDT services, well, globally, what we have to expect is that we will be able to maintain these very healthy levels. There is nothing to be taken into account in the future in this regard. As regards the strategic plan, I will hand the other question over to Roberto. Well, here there are several circumstances, and I would like to answer some questions that have also been sent through the chat. We wanted to present the strategic plan at the end of the year in November, and, well, we had chosen a day that did not turn out to be the most suitable day. It was on 11 November, and as there is going to be a general strike, we have been forced to establish another date.
Patricia Berjón: I think that due to operational reasons, December is not a good month. It is not easy to find a reasonable date to do a physical presentation in November. Then we also have the appointment of Germán, so we have decided the best thing would be to do this in 2027. Once we have the figures of 2026 submitted, it would be at the end of Q1 when we will be presenting the strategic plan once we have the results of 2026. Of course, the presentation that we have scheduled for November is going to be done by Germán, because this succession has been fully planned and it is well-known. All of these circumstances, when put together, make us think that we will be presenting this with the results.
[Company Representative] (Dominion): Yes, as regards Cerritos, as Patricia pointed out, well, there is not much more information.
[Company Representative] (Dominion): We celebrate that today, we have the date for its commercial implementation that awarded by the authorities in Mexico. Instead of selling the energy at 70% of its price, we are moving on to 100% of the price. We have the possibility of selling the clean energy certificates that are being valued in the market, and power can also be recognized. The project is ex novo. In other words, it is migrated. It has all of its background completely clean, and it is a project that, as of today, is perfectly apt and is perfectly valued too. It can be sold, because as you know, we have different expressions of interest on the table. We are now in the process of speaking to people and to see how we can carry this project out without making any kind of mistakes.
[Company Representative] (Dominion): Now we are reaching weeks in which there are going to be visits and conversations, and we will be negotiating the project, which is what we can say about this. In Argentina, it is very similar too, because we do know that as the process evolves, the company is producing more cash and we are reducing our level of net debt. It will be under EUR 20 million, and we are also managing the process in Argentina. We know that there is a macro situation there, and because of the reactivation of the country, what concerns us most is to fully support the management of the biomass process. We know that there are opportunities at our disposal that we are negotiating too, so that we can eventually have this asset at our disposal.
[Company Representative] (Dominion): I think that these are timings that, considering what we have to be transferred to 2027 so that they can crystallize as soon as possible.
Luis Padrón: Thank you.
Patricia Berjón: Well, let us give the floor now to David López from JB Capital. Please remember that you must switch on the microphone.
David López: Hello, good morning. Can you hear me?
Patricia Berjón: Yes, perfect.
David López: Hello. Just a follow-up question on what Carlos Treviño was asking you about before, and that in the past you spoke about EUR 125 million in EBITDA for recurrent businesses. I would just like to ask you if you still are contemplating, or do you think that that level can be reached this year, only in the case of recurrent businesses?
[Company Representative] (Dominion): Hello, David. Yes, I think that the figures. We have to work things out with the figures we have just now.
[Company Representative] (Dominion): As you can see, you can see that the evolution of the recurrent business is very good. It is 4.8% in growth of GDE, 5.5% in services. Globally, both of them are above 5%. This is what we mentioned throughout the year. Therefore, the focus, as you already know, would be on the execution of the project. It would not be focused on the comparative analysis like here. We do not know what is going to happen in Q4 because you know that these projects work with milestones and with different situations that could produce a bigger or lower turnover and bigger or lower margins in the quarter. That is why we do not want to give you a specific figure in this area. There is no doubt, however, that even in the case of recurrent businesses, they are growing and a very healthy level.
[Company Representative] (Dominion): Yes, we are now at cruising speed in spite of the environment. I think that was mentioned by Patricia. Let's say that whatever has to do with the Middle East, with the Gulf, it is a year in which we have dropped compared to the previous year. Even so, we are maintaining figures that are very good. What I mean to say is that we are fighting against all of that, and even so, we have had some very positive outcomes. We feel comfortable with that approach. Thank you. Okay, I think that we have touched upon the CEO and the Chairman issue. There are going to be no other changes in the management team. As Patricia pointed out, this was fully planned, and it is an absolutely natural transition, and everything continues as it was before. Cerritos, biomass.
Patricia Berjón: Well, there is a question on the net financial debt, but in these 9 months, in Q1 and Q3, we did not report any debt data. What you can see in this quarter is that there has been a payment of dividend. That was EUR 8 million on 1 June, and there were some other payment of dividends to minority shareholders and some minor payments too, but there is nothing relevant until we present the figures of our net debt in the year. This is also related to the normal generation of operating cash flow of the company, so everything is all right. Anything else? I think that all of the questions have been answered. If you have no further questions, I think that, well, perhaps if there is anything else you would like to say via the
