Welcome to Elia Group's Capital Markets Day 2023. Today, we will be sharing updates about our strategy with you, and we'll outline how we future-proof our company. Many speakers will be joining us today, and to start, I've been joined by Catherine Vandenborre, who was recently appointed as our new interim CEO. Catherine, how have you enjoyed your new role so far? I must say that those three months went by extremely quickly, Marleen. We have finalized tariff negotiations in our regulated market, which are now better aligned with market conditions. We have increased our ambitions in terms of network development, and we are preparing for the future by acquiring a stake in energyRe Giga in the U.S. That being said, combining my CFO and CEO roles was a bit too much, so I proposed to our board to appoint Marco Nix as group CFO as interim. And as investors and analysts, you know Marco from his previous role as CFO of 50Hertz. Together, and with all Elia Group employees, we are preparing Elia Group for the future. Yeah, future-proofing Elia is indeed what this Capital Markets Day is about. Many important achievements and updates have been announced in the past weeks, and let's briefly go through some highlights that you've just mentioned, Catherine. In mid-November, the Belgian Electricity and Gas Regulator, the CREG, approved the tariff proposal submitted by Elia for the next regulatory period, which will start in January. Important progress has been made in this area in Germany as well. We'll come back to that later today. These tariffs are crucial for the successful execution of our CapEx program that was recently updated. Over the next five years, Elia Group is investing EUR 30.1 billion into its projects in Belgium and Germany. That is a significant amount, and so a significant milestone in the history of Elia Group. Catherine, what has led us to such an increase? Well, of course, there is no energy transition without massive investments in power grids. Grids need to be an enabler and not a bottleneck, and this is definitely having an impact on our CapEx program, especially in Germany, where the new Grid Development Plan will soon be approved. One of the big changes is that 50Hertz will expand its experience to the German North Sea. Mm-hmm. On Monday, another milestone was reached with regards to our inorganic growth ambitions. Elia Group entered a firm agreement to acquire 35.1% in energyRe Giga project, a clean energy company in the U.S. The total cost of this acquisition is $400 million, spread over 3 years. Catherine, what was the rationale behind this acquisition? Well, this acquisition fits in our growth strategy, where we focus on expanding our activities abroad to support the development of transmission infrastructure, contributing to sustainable energy solutions. We are entering the US market with a very strong partner. We both have specific strengths that are highly complementary. energyRe brings local expertise and has a strong pipeline of near-term projects. They operate in a robust regulatory environment. The country is undergoing a remarkable shift towards sustainability, supported by a wide range of incentives and a robust framework. Elia Group has many experiences with infrastructure at sea, HVDC technology, and integrating big amounts of renewables. Yeah, an increased CapEx program in Belgium and Germany, our first acquisition outside Europe in the US. How will Elia Group finance this all? It's a very relevant question, Marleen, and I will give more detail at the end of the presentation, but I can already confirm that our reference shareholder, Publi-T, has affirmed its continued support for the strategy and its execution. Also, there are no plans to raise equity in the near term, as we have sufficient at home to fund our investments with debt, in line with our financial policy. Lastly, it's crucial to secure long-term funding for our value accretive investment. As said, we will delve into this further later into this session. Okay. Thank you, Catherine. You mentioned already the board of directors. Now, let's hear a statement from Bernard Gustin, the President of the board. He emphasizes the exceptional management and technical experience within Elia Group. More than ever, Elia Group is at the center of the energy transition and wants to develop its international activities to become a leading multinational energy transmission group. In our traditional markets of Belgium and Germany, we are planning to grow our regulated asset base quickly to ensure the success of the energy transition in both countries, in line with their ambitions. The projects that we are leading, such as the Princess Elisabeth Island in Belgium or the SüdOstLink and Baltic Sea offshore projects in Germany, demonstrate the unique savoir-faire of Elia Group from a management and technological point of view. The acceleration of our digital transformation will also allow us to stay at the forefront of our industry. We are also carefully organizing the funding of this important CapEx program. Recent positive developments of regulation in Belgium and Germany will help us in that task. Elia Group reference shareholder is organizing itself to uphold its participation in the future. Our very recent developments in the United States also highlight our willingness to promote our unique expertise beyond our traditional markets. It also constitutes a first concrete step towards WindGrid being positioned as an important pillar of our future strategy. ... And let's wrap up this introduction with a video of some special guests visiting the Netzquartier in Berlin. These are images from this Wednesday during their state visit to Germany, the Belgian royal couple. His Royal Majesty, King Philippe, and Queen Mathilde visited 50Hertz, and this happened in the presence of the German president and the First Lady, and many prominent figures from Belgian politics. Catherine, I think this is a strong recognition of Elia Group's support to the socioeconomic wealth of both countries, isn't it? Indeed, and Elia Group has been presented as a great example of Belgian, German entrepreneurial success. The group can indeed rely on the experience gained from the different context of the two countries. So we talked about our pioneering project in offshore, the North South Corridor in Germany, and about the need for flexibility in the market. We also provided an explanation to the royal couple about the Belgian energy islands, named after their daughter, Princess Elisabeth. So yes, it was a great honor to be part of this. Okay, thank you, Catherine, for providing us with this update. We are now going to welcome Yannick Dekoninck to join us. Yannick, welcome. You're the head of Capital Markets at Elia Group. There is much going on in the energy sector and in Elia Group, so we had to be somewhat a bit selective in choosing today's topics. What's on the agenda? Indeed, Marleen, we have a full agenda today. I'm happy to say that all the members of the Elia Group Management Board are present. They will come on stage and go through their specific topics. We will kick straight away with Catherine, who will take a broader look at trends and events impacting Elia Group's business. Then Stefan Kapferer and Frédéric Dunon will provide a comprehensive explanation of the evolution of the CapEx programs in Belgium and in Germany. As just heard by Catherine, the energy transition is gaining momentum. This is resulting in an accelerated execution of projects. Later on, Michael von Roeder takes us to our digital journey. Managing the electricity system is becoming increasingly challenging due to the volatile nature of renewable production. He will explain how we improve efficiency of the existing system and make it more secure. We will also discuss the non-regulated activities of Elia Group. As you just heard, significant progress has been made in that area as well. Catherine will provide further insights. Also, to fulfill all our ambitions, Elia Group needs the right people. Peter Michiels will explain our talent management strategy and the company culture we are aiming for. Finally, we also have a very extensive chapter on financing. Marco Nix and myself will give a very comprehensive explanation about the new regulatory frameworks in Belgium and in Germany, and our remuneration. This will be followed by Catherine, who will conclude with insights on financing our future and the financial outlook. Mm-hmm. I remember from the last Capital Markets Day, that we presented our ESG program, Act Now, to the viewers. How will we be presenting the progress related to Act Now today? That's correct. Last time, we presented the five dimensions separately. Each dimension is related to one or more sustainable development goals of the United Nations. Act Now is fully embedded into our core business. Therefore, today, our actions to improve sustainability will be integrated throughout the presentation. Our ESG activities help de-risking our core activities. They also create the means to better deliver a long-term growth strategy that needs funding, close cooperation with stakeholders, and talent acquisition. Mm-hmm. And each time we talk about a topic that is related to one of Act Now dimensions, a banner will appear on screen. Let's demonstrate this right away. When we talk about the electrification of industry and access to sustainable energy, a banner of the first dimension will appear, climate action. And keep an eye on the side of the screen, the SDGs related to each specific dimension will appear there. That's all clear, Yannick. Thank you very much, and see you later. I have one last practical announcement to share. During this event, our viewers will be able to ask our team some questions. Stéphanie Luyten, Head of Investor Relations, could you explain how the Q&A session will work? Hi, everyone, and welcome. Indeed, I hope everything went well now, and that you're now on the webpage, where you will find, on the left-hand side, the video, on the right-hand side, the Q&A tab. If you joined us via YouTube, you will see in the description link below a link to click on that bring you to this webpage. You can ask your questions throughout the entire event. I will be consolidating them and presenting them to our speakers. Can I kindly ask that you put your name and your company, so in case we run out of time, I will follow up with you offline. I think that's it in terms of practicalities, and we're ready to start our CMD, Marleen. Thank you, and see you later, Stephanie. Only a week ago, the European Commission presented its Grid Action Plan to make sure that electricity grids across Europe will be rolled out further and faster. But it's not just Europe which is increasing its focus on grids. In October, the International Energy Agency published a special report on the topic, stating that grids are the weak link in the energy transition. And there is also a remarkable video of Bill Gates circulating on social media. As can be seen, he is also advocating for a lot of transmission. ... A clean energy future is within reach. We can have a world powered by cheap, reliable, and abundant clean energy. But to unlock that future, we need to build far more high-voltage transmission lines and update the entire energy grid. Now, most electricity doesn't travel very far, because it used to be that power plants were always placed close to where the demand for electricity was. You could put a coal plant or a natural gas plant near to the big cities, but clean energy now is going to be much further away. It'll be where there's deserts with the sun, where there's wind corridors, and that means the distances will get far, far greater. And so to ensure that every household has this clean, reliable power, we need transmission, and a lot of transmission. By the 2030s, we need to build so many new lines that they would reach to the moon if they were strung together. By 2050, we'll need to more than double the size of the grid while replacing most of the existing wires. Building this new transmission is not going to be easy. We have to solve the regulatory challenges. We have to do a big systems design, but the benefits are huge: reliability, lower cost, and getting rid of both global and local pollution. It will create a lot of jobs building this transmission. It's key to our economic and energy security. The sooner we get started, the better. Yeah, an explicit call to action for expanding our power grids. Catherine, how can we implement this in our business activities? We just heard, our activities are clearly part of the solution, and it makes our strategy more relevant than ever. However, the environment we are working in became much more complex. The geopolitical context has had a big impact on the energy sector, and to make our energy system more independent and resilient, society must carry out major investments, not only in renewable generation, but also in leading infrastructure, in electrification and in digitalization. Yeah, and this means putting in maximum efforts at a time of rising interests, a time of inflation. That seems extremely challenging. Indeed, and as our activities are mainly regulated, it's highly important that all governments and regulators understand the difficult context. In Belgium, the negotiations on the new tariff period have been successfully concluded, while they are still ongoing in Germany for a small part, but heading in the right direction. Our request for a fair compensation is of utmost importance. Raising capital for a huge investment program remains an essential ingredient, enabling the acceleration of the energy transition. What will be the consequence if we have a delay in the timely build-out of that infrastructure for society? Yeah, a delay will certainly come to at much higher cost for society. In June, we published our biannual study, which focuses on Belgium's adequacy and flexibility needs for the coming decade, and one of the main messages it carries is that any delay in realizing grid infrastructure will result in additional capacity needs. On the graph of the study that we see on screen now, we can identify that any delay in the expansion of network infrastructure, like project Boucle du Hainaut or Ventilus or TritonLink in different colors on the slide, will have a negative impact on the efficiency and the cost of the energy transition in Belgium. Yeah, the timely build-out of a grid infrastructure is indeed essential, as is visionary leadership, as pointed out by Giles Dickson, the CEO of WindEurope, an association promoting the use of wind power in Europe. As you've just heard, there is no energy transition without transmission, and that requires visionary leadership from transmission system operators, and you are providing exactly that in the Elia Group. Your massive program of new investments in onshore and offshore grids, your innovative approach to investments in hybrid interconnectors to bring electricity from other countries around the North Sea, the Princess Elisabeth Island, which will be the world's first energy island, this is really setting the tone for how grids will be developed and run in the future. The long-term framework contracts, such as that, that 50Hertz has just signed with Prysmian and NKT for cable supply long term, this is the leadership we need, and as the wind industry, we are proud to be working with you, and we look forward very much to your viewpoint next year on offshore development. Encouraging words from Giles Dickson, as always. Thank you, Giles. Catherine, you already mentioned that in the current context, the current difficult context, our strategy is becoming more relevant, so let's do a deep dive on our approach now. Sure, Marleen, and let's briefly explain our strategy that consists of three pillars. We call them the pillars of growth. The first one is linked to our Belgium and German activities as transmission system operator, namely to deliver the infrastructure of the future and develop and operate a sustainable power system. By doing so, we support the integration of renewable energy. We also shape the European markets and facilitate high security of supply. Through our second pillar, we want to improve the customer experience. We are delivering new services and digital tools that benefit the entire energy ecosystem. We created re.alto, the first European marketplace for the exchange of energy data and services. So we want to enable the sector to make a huge digital step forward. And finally, we want to go beyond the current perimeter in order to deliver additional value for society. Let me give some examples. Through our consultancy company, EGI, we help other TSOs to switch to a renewable electricity system. Through WindGrid, we are exploring opportunities, for example, in the US with the energyRe investment, and we are also looking at equity participations that create additional value in combination with our current portfolio. We will come back on this later when we will talk about the non-regulated business of Elia Group and the participation we built in energyRe Giga. Mm-hmm. Elia Group works in the interest of society. That's our societal mission. But what do our stakeholders expect from us? Let's hear some statements from them. This grid is going to be a very decisive factor to get where we want to go, and therefore, it really depends on the TSOs, on their capability, on their knowledge, to build this large grid we need as fast as possible, and of course, at cost, which don't make the energy transition too expensive. We all expect the electricity sector to increase dramatically with many processes that will be electrified with a lot more suppliers, decentralized supply, that has to be integrated in the system. That is a challenging task, and I would expect from a system operator to take the responsibility, also in the dialogue to politics, to the regulator, to the public. What does it mean? What is the realistic view on this progress that we have to make, and what is the security cushion that we still want to keep? Yeah, don't make it too expensive. Participate in discussions with many stakeholders, some of the advice that we are receiving. How are we ensuring, Catherine, that our strategy is aligned with the needs of that society? Mm-hmm. First, we have many interactions with all kinds of stakeholders, such as DSO, consumers, authorities, politicians, suppliers, NGOs, academia, and by doing so, we identify the most material trends that impact our business and the trends that are most material to society. We see that four major topics have gained further importance in the past year. We witnessed that affordability and the cost of the energy transition, as well, the supply chain needed for deploying the necessary assets, skilled talents needed for the transformation of the energy system, and finally, funding needs for the energy transition are even more material to us and to our stakeholders than a year ago. We'll come back to the measure we take to tackle those material topics. Yeah, there are indeed some concerns. However, we discussed already the growing awareness of the need for the grid, so that can be seen as a positive change. Indeed, and there is, for example, an increased attention to speeding up the permit procedures, especially in Germany. The updated grid development plans in Belgium and Germany are bringing more clarity on a future CapEx program, and intensive discussions are ongoing about the future market design in which flexible consumption will be key. Only two weeks ago, Elia Group published a study on consumer-side flexibility. Without consumer-side flexibility, the stability of our electricity system would be at risk. That's why we have put it back at the top of the agenda. Michael von Roeder will tell more about it. Mm-hmm, and another topic that is gaining more prominence is international cooperation. In April this year, Belgium hosted the second edition of the North Sea Summit, bringing together the heads of state and government and energy ministers from nine countries, along with the President of the European Commission, Ursula von der Leyen. The Belgian Prime Minister, Alexander De Croo, called it the largest coalition ever around energy in the North Sea, and we have some interesting footage to share with you. Almost all countries have islands. We don't have an island. I never thought about that. We thought- So- ... okay, if maybe we need to build an island. Then we build our own island. This is our island. Our goal is to deliver a greener Europe, a Europe which is energy independent, and a Europe that can grow in a sustainable way, that can continue creating jobs, and especially that can keep heavy industry, chemistry, and all these activities here on the European continent. This will be connected to the Danish artificial North Sea Island, and Elia is, with 50Hertz, building as well, the Bornholm connection. Ours will be connected to Germany. Yeah. Yeah. So it's we're all interlinked now. Yeah. ... ... And gerade wenn wir jetzt genau sehen, welche ungeheuren Möglichkeiten der Stromproduktion und der Wasserstoffproduktion die Nordsee bietet und gleichzeitig wissen, dass oft die industriellen Zentren, die diesen Strom benötigen, gar nicht direkt an der Küste liegen, sondern viele davon zum Beispiel in Deutschland im Südwesten der Republik, dann ist es wichtig, dass wir die Struktur des Netzausbaus immer mitdenken und auch im Blick haben, dass das genauso schnell vorangehen muss, wie die Stromproduktion anläuft. Und das ist etwas, was wir zustande bringen müssen. Yeah, that was a clear call to do more and to do it quickly. Charles Dixon, Catherine already referred to it, next year the theme of our viewpoints will be offshore development. What can we expect from it? Well, first, offshore is a very important topic for society as we speak, and so we know that our seas will become the power engine of the future. How can we continue the European success story of offshore winds and empower our industries and households on the road to net zero? Today, we are faced with several open questions regarding the framework, cost allocation across multiple countries, spatial planning, and integration of offshore winds into the European electricity system. Given the growing European ambitions, these pending issues are essential to address. Mm-hmm. And I have a last question for you, Catherine. Given that we are discussing a European cooperation, as we mentioned earlier, the European Commission sets out actions to accelerate the roll-outs of electricity grids. What's the consequence of that political ambition for Elia Group? European Commission is proposing an action plan for electricity grids to enhance the efficiency and widespread deployment of grids within the EU, a crucial element in achieving the goals of the European Green Deal. For Elia Group, the outcome is significant, as it addresses challenges in expanding, digitalizing, and optimizing the use of electricity transmission grids. The proposed measures, including accelerating key projects, improving long-term grid planning, and introducing regulatory incentives aligned with Elia Group's objectives. The plan aims to unlock the necessary investments for European electricity grids, ensuring they are well-prepared for the transition to cleaner and more sustainable energy systems. Yeah, indeed, an interesting topic. Thank you, Catherine, for sharing your insights with us. Ladies and gentlemen, let's now dive into our future investment program, and we'll begin with Germany, where we have just made a significant upward revision to our CapEx. Before inviting Stefan Kapferer to join us, Stéphanie Luyten will set the scene. Sure, Marleen. Grid development plans, which are published every two years, are essential for planning out and deploying the transmission grids of the future. Ultimately, therefore, they help us ensure that the energy transition is a success. In Germany, we work on grid development plans with the other countries' TSOs. In doing so, we ensure that the views of our stakeholders are gathered via extensive consultation processes. We also harmonize our plans with ENTSO-E 10-year European network development plans. After this, they are submitted to the Federal Network Agency, BNetzA, for final confirmation. Germany has set itself the goal of achieving climate neutrality as early as 2045. The latest grid development plan, published in 2023, looks to the years 2037 and 2045. For the first time, it describes an electricity grid that can allow Germany to reach climate neutrality by 2045. The plan envisions a strong rise in renewable energy sources and electricity demand in order to decarbonize industry and society at earlier stages than originally planned. This will require the electricity system to be transformed more quickly and means that the transmission capacity belonging to each of the country's TSOs will need to be rapidly increased. This has led us to announce a CapEx plan of EUR 20.7 billion for Germany for the period 2024 to 2028. This is more than double the investment volume for the last period. The key reasons being, first, integration of the new projects into our Grid Development Plan. Second, the rolling forward of the five-year CapEx plan that is backloaded. And third, the rising costs associated with both grid assets and services. If we now look at the profiling of our German CapEx plan, we plan to invest around EUR 3.3 billion per year in the years 2024/2025, and then gradually increase to over EUR 5 billion in 2028. For a deep dive on the project, let's turn back to Marleen and to the studio. Thank you, Stephanie, and welcome Stefan Kapferer, CEO of 50Hertz. As mentioned by Stephanie, the new grid development plan is one of the main drivers of the revised CapEx plan of 50Hertz. Can you explain this sudden increase? ... Yeah, the key reason for that, obviously, is that Germany wants to become climate neutral in 2045, and we have heard by Stephanie that for the first time ever, the four TSOs in Germany prepared a grid infrastructure planning, which is really fit for climate neutrality, and obviously, this will have a lot of impact. One impact is that electrification will double. We will see a much higher demand in Germany in 2045 compared to today. And as we wanna cover this demand by renewables, we need five-fold generation capacities of renewables up to 700 gigawatt offshore wind, onshore wind, and solar. And obviously, we need then a stronger grid to integrate all these renewables and to transport it to the places where the demand side is. Yeah, and if you compare now the previous and the current Grid Development Plan, what projects have now been placed as a priority in Germany? Yeah, we all remember that, in Germany, 50Hertz is working at the moment on two DC connections, the so-called SüdOstLink and the SüdOstLink Plus, transporting electricity from the Baltic Sea region in Mecklenburg-Vorpommern to the south of our control area and to the south of Germany in Bavaria. But there are three additional, DC links for the future: one from the northeast corridor, one from east to west, crossing from Lower Saxony to Saxony, and one more from the north to the south. So a clear proof that this is really now a strong pipeline of projects which will guarantee climate neutrality in 2045, and at the same time, guaranteeing that we will see industrial value in Germany also in the future. Yeah, the SüdOstLink that you saw on the map reached a first milestone in March this year. The groundbreaking ceremony at the Wolmirstedt substation near Magdeburg marked a first day of construction of one of the converter stations. The guests of honor included Robert Habeck, Federal Minister for Economic Affairs and Climate Action. Let's move to offshore development in Germany. Until recently, 50Hertz's focus was solely on the Baltic Sea, but two years ago, a collaboration agreement has been signed with TenneT to transport offshore wind also from the North Sea to the German grid. Further expansion in that area will be taking place as outlined in the new Grid Development Plan. So, Stefan, what decisions have been made about this, please? Yeah, also there, Marleen, we will have a very strong pipeline of additional projects. 50Hertz will realize till the 2040s of the century, 4 additional projects in the North Sea, every one based on 2 gigawatt of offshore wind delivered to the German coastline, and the first project, NOR-11-1, will be realized till the beginning of the 2030s. It's a very innovative project. You mentioned it, it's a multi-terminal hub at Heide West together with TenneT, and then with a DC corridor to the eastern part of Germany, so a big step forward from my perspective. Yeah, the North Sea is new territory for 50Hertz, but meanwhile, in the Baltic Sea, 50Hertz is actively working on the further developing of the grid there. What are the most significant projects over there? Yeah, at the moment, the Baltic Sea is a little bit the hotspot of European cooperation. What we can see in the Baltic Sea is that radial connections to the coastline are becoming less relevant, and hybrid interconnectors, European cooperation, is becoming more relevant. Germany is working a lot with Denmark in energy supply, and one of the next projects we will realize with Energinet, our colleagues from Denmark, is the so-called Bornholm Energy Island, the existing island in Bornholm as a hub, offshore wind farms around Bornholm, and grid connections to Zealand in Denmark and to Mecklenburg-Vorpommern in Germany. But it's not only a German-Danish cooperation, also a cooperation with Sweden is in reach. Germany has given the permission to us for the Hansa Power Bridge. We are waiting now for our colleagues at the Swedish side, and we signed an LOI with Elering and Litgrid earlier this year to develop the project, Baltic WindC onnector, to harvest the full potential of offshore wind in front of the Baltic States. Mm-hmm. Many projects indeed. 50Hertz, you set a strategic goal of 100% renewables by 2023. The year is not over yet. Probably the percentage of renewable energy in the 50Hertz zone will rise above 70%. There are still many renewable projects coming, as we just explained. Does this mean that you will achieve this strategic goal of 100% by 2032?... Yeah, I'm very optimistic that we will reach the target in 2032. You mentioned 70%, that's a realistic figure. We've just seen a few days ago that power generation based on coal was shrinking a lot in Germany. Renewables are going up, so this is good news. We see more and more investments from industrial investors in Eastern Germany, chip factories, battery factories, data centers, relying on this green energy, which is, of course, good news for all of us. So I'm very confident that we will be able to ramp up our ability to manage this target in 2032. Mm-hmm. Katrin already touched the subject. The discussions about the affordability and the cost of the energy transitioning are intensifying, especially in Germany, I would say. As a system operator, we are just one link in a larger chain, but how can we ensure that our society is going to net zero in the most cost-efficient way? Yeah, 50Hertz and Elia Group are extremely interested in this topic of affordability. It was mentioned by Katrin earlier today, and Stephanie mentioned it as well. When we look at the figures, and obviously, we have to think about a close cooperation with public authorities. How can we develop the supply chain situation to receive cheaper technological assets for our projects? Second topic, standardization is needed. The 2-gigawatt standard for offshore projects is extremely helpful to reduce costs, and we have a lot of vested interest in the energy transition process, not linked really to the climate neutrality target. And we have to discuss with politics, are all these vested interests as well needed as the climate neutrality aspect? Last but not least, please do not forget that flexibility will play a key role, that digitization will play a key role to make it at more cost-efficient, and to work always on our internal structures to be well prepared for the upcoming number of projects. Mm-hmm. At this time, currently, 50Hertz is applying for more than 1,150 kilometers of transmission lines, and it expected that those permits will arrive soon. How come that you have a sudden acceleration of those permits now in Germany? Yeah, first of all, it's good news that we will see this wave of permits. We have heard Chancellor Scholz in Ostend when he once again said, "Yeah, we need faster permission procedure." That's true, but there, the bottleneck from my perspective is at the European level, as well as the national level, solved. So scaling up now, cooperating with the regulator and the local authorities, extremely relevant. And when we look at the delivery process, we have to manage that our organization is well prepared for that. We did it with a matrix organization. We started at 50Hertz last autumn, and that will help us to deliver the projects in time. Mm-hmm. Due to the extensive investment plans of numerous European TSOs and other industries, the supply chain is facing significant pressure. Delivery times are on the rise, and there is limited flexibility for negotiations. In order to guarantee the timely executions of projects upon receiving permits, 50Hertz has taken a proactive approach by securing big contracts with Prysmian and NKT. These contracts include the production and the installation of submarine and land cables, covering a total length of 3,500 kilometers. With a substantial volume of EUR 4.6 billion, these contracts mark a groundbreaking milestone. EUR 4.6 billion total investment. Though it's the highest investment ever decided by 50Hertz as part of Elia Group in history, and it will realize a lot of onshore DC projects and a lot of connections offshore to the Baltic Sea and the North Sea. It's a big step forward for the Energiewende. We started qualifying these cables a few years ago, not knowing, of course, where the world was going with the energy security and also the energy transition at this stage. The world is facing an unprecedented situation, so the demand is extremely high. The targets are extremely high. First of all, 50Hertz is one of the leaders in the market. From that perspective, we could not be not part of this project. You have to have an order from a customer that is really going to go forward with the project. So there are many companies that are trying to enter into the energy transition, but I don't think all of them are capable of doing it. The collaboration between NKT and 50Hertz goes many years back, and today, by this milestone, we are cementing this for another decade to come. These contracts will play a central role in the green transition, both for Germany but also for Europe. The cables we will deliver in the 50Hertz frame agreement, they will be manufactured here in Germany, in Cologne, and also in Karlskrona, in Sweden. So this is in the close proximity of the final resting places of these cables, which are Baltic Sea and also North Sea. But over and beyond that, we do a lot to try to Reduce our carbon footprint emission. Things like running our factories on 100% renewable energy. We are basically completely now electrifying the internal logistics, machinery that we have in our factories. Last but not least, we are using very modern cable lay vessels with the ability to run fully on biofuel. ... Yeah, all the projects connected to the tender today are commissioned or will be commissioned end of the twenties, beginning of the thirties. So it's now not a decade, but maybe eight, maximum nine years of projects which are able to be delivered by this tender today. But the next projects are ahead of us. We all know that the Grid Development Plan 2037 will be finalized later this year, and confirmed by the parliament beginning next year. And then new tenders are ahead of us, and more projects to come in the second half of the thirties. Yeah, there is more to come, but the supply chain could become a bottleneck, Stefan. How are we adapting to a market where suppliers selectively choose tenders, projects, and, and customers to de-risk their offers? Yeah, first of all, we have heard that these are European suppliers, which is good news, and that the cable of NKT, for example, is produced in Cologne as a German manufacturing site of NKT as well. So the Net-Zero Industry Act, which is discussed at the moment in Brussels, is extremely relevant because we need more manufacturing capacities in the European countries. Second topic, we have to intensify the partnership with our suppliers. Obviously, a strong pipeline of projects is extremely relevant for the suppliers to invest in additional manufacturing capacities. So cooperation and having a clear pipeline, a strong pipeline for the future, is extremely relevant. Then we will see additional workplaces also in the supply chain in Europe. Mm-hmm. Thank you, Stefan. To conclude, let's revisit the royal visit of Wednesday after a number of roundtable discussions at the 50Hertz Netzquartier. The royal couple visited the Berlin Kabeldiagonale project of 50Hertz. Stefan, Germans are not that familiar with kings and queens, and royals in general. How did you personally experience the visit, and why did you propose this particular project to the royal palace? Yeah, you can imagine, Marleen, sometimes we are a little bit jealous in Germany. But what we have noticed as well at the Netzquartier is the media interest, the media coverage based on a royal couple is extremely high. But nevertheless, it was also a clear proof that, the energy transition is a European project. It will only work with, European cooperation. The challenges for a metropolitan area like Brussels are very similar to the challenges we will see in a metropolitan area like Berlin. So to transport a lot of, electricity into the heart of the city, to electrify transport, to electrify heating systems, is the same challenge for all of us. So the visit in the tunnel was, I think, a good example for this kind of innovation and cooperation we can copy-paste in different European states. Indeed, it was a big success, and the feedback that we got from the palace was really good. Thank you, Stefan. For safety reasons, the royal couple could not visit the construction site of the Berlin Kabeldiagonale project. They visited a section that has been already completed. To conclude this section on the grid development in Germany, we have a nice video to share with you. My name is Martin Kühnel. I am part of the tunnel project for the Berlin Kabeldiagonale. The cables must be replaced accordingly, as the transmission capacity is limited, and in order to supply the city with permanent power, we are basically building a new high-voltage line under Berlin. We are here at the start shaft of the Berlin Kabeldiagonale A nder the Rudolf-Wissell-Brücke. This start shaft consists of three individual shafts. This is because the tunnel driving machine needs at least 40 meters to be installed so that it can push the first meters forward. The total length of the tunnel boring machine is 155 meters. This machine has a weight of almost 408 tons. When it makes progress, it moves forward with almost 1,700 tons of force. When we have made 1.20 meters of progress, we will, in the rear area of the tunnel driving machine, about 12 meters behind the cutting wheel, install these prefabricated concrete parts under the protection of the shield. When these are installed, we can make another 1.20 meters of progress. The Berlin Kabeldiagonal is important for the energy transition, because, of course, with the increase in transmission capacity, we can also transmit the renewable energies through the Kabeldiagonal, and at the same time, it is crucial for the supply of the capital. Our infrastructure program plays a vital role in integrating significant volumes of renewable energy, and ultimately helping in the decarbonization of our society. However, we must also consider our own CO2 footprints. Through our Act Now program, we are firmly dedicated to providing complete transparency regarding this carbon footprint linked to the equipment we procure. Marco, welcome on stage. As Catherine already mentioned, you are the new CFO at interim of Elia Group. Congratulations. How can you highlight some actions that we are taking in the regard of CO2 reduction? Many thanks, Marleen. Walk the talk is part of our DNA. In our long-term cable supply tender, we have built in an internal carbon price linked to a bonus and malus system, which we had never done before. That was a huge step for us, and also for the sector. We then implemented the same principle in the Princess Elisabeth Island AC modules tender, and have also decided to use it in the upcoming Bornholm Energy Island procurement process. In order to track the actual footprint of the assets and works we contract, we recently launched our Scope 3 accounting platform. It will give us transparency on the carbon footprint of more than 60% of our investment activities and further drive the maturity level of our Scope 3 data from 2022-2024 onwards. In parallel, we embedded an internal carbon price to EUR 200 per ton of CO2 equivalents in our decision-making process in order to reflect the costs of our CO2 emissions for the society. Okay, thank you, Marco. Now let's shift our focus from the CapEx program in Germany to Belgium, and start with a brief overview of the CapEx plan. Here comes Stéphanie Luyten again. In Belgium, the Federal Development Plan was approved by the federal government in May earlier this year. As always, it's produced following close working with the Belgian regulator and relevant public authorities. It identifies the country's grid expansion needs while taking into account technical, industrial, and societal trends. Between 2024 and 2028, Elia is set to invest EUR 9.4 billion in its onshore and offshore infrastructure. This rise, compared with Elia's latest CapEx plan, is primarily due to the rolling forward of the five-year plan with backloaded CapEx and the effect of price inflation. The CapEx plan, with yearly investments of around EUR 1.6 billion for 2024 to 2026, will be increased to over EUR 2 billion in 2027 and 2028. These investments will serve to make progress on sustainable electrification efforts across Belgium by further integrating the country into the European electricity system. This will be achieved through interconnectors, the reinforcement of the electricity backbone, and by making more renewable energy sources available to consumers. As a result, Elia will estimate an annual rev growth of 18% over the next five years. One major project being worked on by the Elia team is the Princess Elisabeth Island. This artificial island, which is the first of its kind in the world, will connect offshore wind farms located in the Princess Elisabeth Zone to the mainland. It will also function as a hub for hybrid interconnectors with the UK and Denmark, so constituting a significant step forward in establishment of a meshed offshore grid in the North Sea. These hybrid interconnectors are doubly valuable. They connect countries together whilst also linking these countries to offshore wind farms. They are essential for integrating more renewables into system, for securing competitive energy prices, and increasing Europe's energy sovereignty. To benefit from these higher volumes of renewable energy, the mainland high voltage grid needs to be reinforced. The Ventilus, the Boucle du Nord projects, they will play a pivotal role in distributing offshore wind production across the country. These onshore connections will provide additional hosting capacity and bolster the resilience, reliability, and the stability of the 380 kV electricity grid. Approximately one third of our investment budget is allocated to the maintenance of the existing infrastructure to ensure its continued functionality. Back to you, Marleen. Thank you, Stephanie. If you want to see at a glance what is going to happen in the Belgian electricity system over the next decade, then keep the following slide in mind. It's a graphic from Elia's latest Adequacy and Flexibility report, published in June. Frédéric Dunon, Deputy CEO of Elia Group Transmission, welcome. We see a huge wave of electrification ahead. How will we cope with this? Doing nothing, Marleen, isn't an option. It would put the stability of the electricity grid at risk. And when we see the figure on the slide that you presented before, we see it's not a business as usual. It's impressive. And we see electrification is gaining traction in three key sectors: heating, the part in red, mobility, and especially industry, the orange block. We have to avoid a situation in which those millions of electric cars and heat pumps start charging at the same time. That's why unlocking consumer-side flexibility is essential, and why we recently put it back high on the agenda with our vision paper, The Power of Flex. Mm-hmm. 50Hertz strategic ambition is 100% by 2032, as Stefan just explained. That is... That ambition is not realistic in Belgium, given the country's limited renewable energy potential. But if you were to summarize Elia's ambition in one sentence, our strategic ambition, what would it be? I would say ready for 50% increase by 2032. Just to be clear, that is not an increase of the electricity bill, that is the increase of the electrical consumption. Electrification is spreading across society, both earlier and at a faster speed than predicted. The biggest increase comes from industry, 20 TWh, but we also predict an important uptake in mobility and heating, both with 10 TWh. The challenge now is to power the ongoing sector convergence in the most sustainable and affordable way, that means maximum use of renewable energy sources on and offshore. At the same time, keep the lights on and support socioeconomic development at reasonable cost. Affordability, like Catherine said, like Stefan said, of the energy transition has to stay a point of attention if we, as a society, want to succeed. Yeah. Catherine already showed us how much impact the timely build-out of the grid can have on linking up the generation capacity that will be needed to support electrification. Let's take a closer look at the green lines of the graphic seen on screen now, which demonstrates the impact of flexible consumption. And as you can see, flexible consumption can also be an important level for reducing capacity needs. So, Frédéric, if we go further in time, the bigger the impact. If successfully unlocked, flexibility can really lead to significant efficiency gains, isn't it? Indeed, and it was one of the main messages in our last adequacy and flexibility report. Investing in accelerated digitalization to unlock flexibility is as important as investment in the timely build-out of infrastructure. In 10 years from now, we have calculated that flexibility will be able to reduce the Belgian need for capacity by 2 gigawatts. That is the equivalent to two big gas power plants. Additionally, flexibility also helps to integrate increasing amounts of renewables, as it can manage the variability of renewable production. Yeah. We will revisit flexibility later on with Michael. Let's zoom in on the needs for grid and the Belgian Federal Development Plan that was approved in May by the Belgian government. The plan is based on five principles, and we will go through them one by one, and let's start by making optimal use of the existing grid. Frédéric, what reinforcements are we talking about? It means that we first want to optimize what we already have, and before building new things, optimizing what we already have. It is basically asset and existing corridors. We are making good progress on the reinforcement of so-called Belgian Backbone. That's the existing 380-kilovolt high-voltage grid that you can see on the map. Most efforts go to the upgrading of existing corridors with high-performance conductors, and at some places, the installation of a second system. This doubles the capacity of the existing corridors with a minimal visual impact. That reinforcement programme started several years ago and will continue for many years, till at least 2040. Yeah, important project. So let's move to the second pillar of the Belgium Grid Development Plan: maximizing the integration of the domestic renewable potential. Frédéric, renewable energy, that's a scarce resource in Belgium. What additional renewable generation do we expect to tailor in the next 10 years in Belgium? Yes, indeed, a scarce source in Belgium. We know Belgium is short in renewable, then we have to maximize the use of it. Onshore, we expect a more than twofold increase of the current capacity. On top of that, an additional 3.5 GW offshore wind capacity will be added. Those wind farms will be directly connected to the Princess Elisabeth Island. To bring energy to the consumer centers on land, we need to build two missing links in our system: the projects Ventilus and Boucle du Hainaut. Once complete, two additional loops will be created. It will make our system more robust in case of incident. Ventilus and Boucle du Hainaut have reached important milestones during last summer. Currently, we are engaging with the impacted communities and authorities to ensure that the project will be delivered on time. Yeah. You already mentioned the Princess Elisabeth Island, and that brings us to the third pillar of the Grid Development Plan: realizing a first offshore energy hub as a gateway to the North Sea. What progress, Frédéric, have we seen there? The Princess Elisabeth Island is one of the most complex project we have ever realised, and we are always quite proud of it, as Elia, but also as Belgian society, because our companies will also be able to shine thanks to this project worldwide. It's a key link in our future energy supply. It will enable the connection of 3.5 GW Belgian offshore wind. At the same time, it will act as the entry point to the offshore power plant that the North Sea will become. This essential building block to achieve the European ambitions of having 300 GW of offshore wind by 2050. In March this year, we awarded the contract for the design and the construction of the island to a consortium consisting of DEME and Jan De Nul. Meanwhile, the design has been finalized and the construction yard in Vlissingen, where the foundation makes the caissons, will be built. It is in full preparation. We also accelerated the procurement process for the high-voltage infrastructure due to the increasing pressure on the suppliers' market. This will ensure the timely realization of the necessary capacity. Yeah. Meanwhile, Elia was granted the environmental permit for the island. And a month ago, we presented our Nature-Inclusive Design approach. We will revisit a little bit later this morning. Now, we will go to Denmark, where the island's resistance to big waves and heavy currents was tested ahead of the construction. A large-scale model of the island was created in a test environment, and such testing is necessary to de-risk the project, as Frédéric said, as the project, the Princess Elisabeth Island project, is one of the biggest projects that Elia has ever carried out. ... This is a scale model test, so that means that we have scaled everything down. We have scaled 1 to 60, so 1 meter in the lab corresponds to 60 meters in real life. We are having 8-meter wave height, 1,000-year storm events, and even then, a very limited amount of water can still come over the island. So far offshore, yeah, that's a unique combination. To do this in Belgium, in your own country, as a Belgian contractor, we might export this knowledge later to any other project in the world, and we can always say it has been built for the first time in Belgium. I was the most impressed by how proud everyone is to be able to do such a thing. We're producing a lot of electricity in the North Sea, and this will be the hub to provide Belgian customers, Belgian households, Belgian industries with green and affordable electricity. To me, it's an honor to work with people like here, because together we have a lot of brainpower, decision power, and we need that to the energy transition to succeed. In addition to connecting offshore wind to the Belgian mainland, the energy island will serve as a landing point for two future hybrid interconnectors: one with the U.K., Nautilus, and one with Denmark, Triton Link project. Both projects were recently recognized as key by the European Commission, and this means that they will benefit from streamlined permitting and regulatory procedures, and will become eligible for EU financial support. And this brings us to, the next pillar of the Grid Development Plan, integrating European electricity markets. Frédéric, what's the societal benefit of being interconnected with a growing number of countries around us? The potential for renewable energy in Europe is unevenly distributed. Mm-hmm. As you can see, on the map from our Roadmap to Net Zero report, there will be countries that have an excess and countries that have a shortage of renewable energy. For Belgium, and by the way, also for Germany, European collaboration will be key for reaching net zero by 2050. Therefore, we need more interconnectors to share the potential, the renewable potential between countries, and to get access to competitive prices. Yeah. That's why we are establishing partnerships with other countries. How do you see the integration of Belgium into the European electricity system evolving? In February this year, we signed an MOU, a Master of Understanding, for a second interconnector with Germany. This happened during the Belgian-German Energy Summit in Zeebrugge. In addition, we also assess other potential interconnectors with France, the Netherlands, and Norway, and that is on top of what we do for the moment with the U.K. for Nautilus, and with Denmark for Triton. Several feasibilities to this are ongoing. Based on the outcome, we will or will not take further steps. Mm-hmm. And then the last driver of the Belgian Grid Development Plan is enabling far-reaching electrification of the Belgian society. What are the needs there? There, Elia expects the number of energy-intensive companies that are directly connected to the 380 kV high-voltage grid to increase. Next to that, for smaller industries, industrial clusters will also be subject to significant growth in consumption. Cooperation with local authorities, such as intercommunal development agencies in Wallonia, or ports in Flanders, and also industrial companies already connected to our grids or to distribution networks, is essential. We need to be able to put future consumption needs into perspective by geographical area, so infrastructure will be ready on time. Yeah. In the Netherlands, there is much discussion about the lack of connection capacity. Manon van Beek, the CEO of TenneT, has mentioned that more than 6,500 companies are currently waiting to be connected to the grid. Frédéric, could this happen in Belgium? The situation is not the same than in the Netherlands. Only yesterday, we published a so-called hosting capacity map. If you go on Elia website, you will see that all capacity reservation requests from consumers can be connected, of course, on the condition that the planned infrastructure works are completed on time. However, network capacity is not infinite. That would be unaffordable. So it is becoming increasingly important to anticipate future consumers' needs, allowing us to plan infrastructure works well in advance. The hosting capacity map also shows that the so-called flexible connections can create substantial additional capacity on the network. Connecting new grid users with an expected limited flexibility of 5% only creates two to three times more space on the grid. So it's not only about flexible consumption, it's also about flexible connections. Thank you, Frédéric, for sharing your insights with us. We will now conclude our overview of activities in Belgium with a look at the Princess Elisabeth Island. Over the past few months, Elia has been working with nature conservation experts and marine experts to minimize the island's environmental impact. We want the island to become a global benchmark for nature-inclusive design approaches in offshore developments. Our seas are set to become the power plants of the future. To ensure a successful energy transition, the large-scale development of offshore wind production will be key. The more infrastructure we build, the more interaction there will be with life, both on the surface of and below water. Until now, we have mostly focused on measures we can take after our infrastructure has been built. Our attention is now shifting. ...To ensure our infrastructure is constructed in a manner that promotes a positive influence on marine ecosystems from the start, we have been collaborating with nature conservation experts from public and private organizations, universities, consultancies, and non-governmental organizations. This approach is called nature-inclusive design. The Princess Elisabeth Island is our flagship project. Situated 45 kilometers off the Belgian coast, this artificial energy hub will include connections to offshore wind farms and serve as a landing point for additional interconnectors with the UK and Denmark. What does nature-inclusive design mean in practice? Let's start by looking at how it will be implemented above water. The island itself will be surrounded by a flood wall, onto which small ledges will be built. These will attract black-legged kittiwakes. This fragile species of seagull lives and predominantly breeds on coasts with rocky cliffs. Tough man-made structures, such as ledges, can also be used by them. Beneath the wall's bullnose, three horizontal structures spaced 0.5 m apart will create 2.6 km of breeding habitat. Along with nature experts, we will closely monitor the population's evolution. Below water, we will create an artificial reef in which marine life will be encouraged to flourish. According to nature experts, ecosystem approaches are best. Different ecosystem components must be encouraged to interact as much as possible, creating additional benefits. In a first phase, the measures we take will be grouped around the four corners of the island to get optimal results. How will this be implemented? A diverse and complex scour protection system will be installed around the island. Fine gravel beds will reinforce the island's corners. Larger loose stones, like boulders, will be placed on top of these beds. The more diverse the habitat, the richer the life will be that settles there. Additional structures will be installed to serve as an oyster larvae source. These larvae can then settle within this meticulously designed habitat, kick-starting the formation of a biogenic oyster reef. Finally, we will also implement measures to give the smooth walls of the island's foundations a more irregular structure. Relief panels will be attached to the lower parts of the walls. These will appeal both to small organisms, including crustaceans, larvae, and invertebrates, searching for solid surfaces to attach themselves to, and to small fish seeking shelter and places to forage in. The artificial reef and associated measures will further protect the island from erosion. That's a win-win! There is still much work to do, but the unique co-creation process that we have been undertaking with experts has already yielded several valuable lessons. The implementation of this approach and monitoring of the progress we make are opening up new possibilities for future projects. That's a future project, but Elia Group has hundreds of assets spread over a wide territory. In the context of climate change, their fragility can be quite high at times. For example, during the summer of 2021, there was devastating floods in Wallonia, and the substation in Pepinster was severely damaged. The incident has highlighted the urgency of improving our climate resilience efforts. Marco, how can we ensure that our infrastructure really becomes resilient in the face of extreme weather events? On one hand, our infrastructure is part of the solution- Mm-hmm. To fight the climate change by integrating renewables. On the other hand, we are exposed to events like you mentioned, and our grid has to be resilient. We are therefore adapting current assets and sites and increasing preparedness for swift disaster recovery. Based on the assessments of future wind, flooding, and extreme temperature scenarios on our asset fleet, we have replaced and reinforced around 3,000 pylons to resist to local tornadoes. Furthermore, increased the flood protection on the most critical sites, to name a few of the measures. Okay, thank you, Marco. Not only our infrastructure needs to become more resilient, but the same applies to the operation of the electricity system. As our society embraces electrification, millions of electrical devices, including electric cars and heat pumps, are being introduced. How can we ensure that they don't all consume electricity at the same moment? And the answer lies in adopting flexible consumption. We will now explore some interesting insights shared by Sanjit Sanghera, Head of Power Grids and Utilities at BloombergNEF, followed by a discussion on our digital strategy. Hi, everyone. Thanks so much for giving me the opportunity to speak to you today, and on such an important topic: flexibility. At BloombergNEF, we believe that flexibility is crucial to the future power system. We conduct a study out to 2050 on the future of the energy system. As part of that, we run an all-energy net zero scenario, with the objective of aligning with the Paris Agreement and limiting the impact of climate change... This is what it shows us. The future power system will be dominated by wind and solar. In fact, it grows to represent three-quarters of global electricity generation by 2050. Now, the variability of this generation creates a flexibility problem that needs to be addressed. In part, this problem can be solved by repurposing the legacy generation assets that wind and solar are replacing. So on this chart, we see gas with carbon capture and storage in purple and some amount of hydrogen generation as well. Now, the demand side of the power system is also undergoing significant changes and offers other possible solutions. Power consumption grows more than threefold due to a widespread electrification, and this growth comes with opportunities to renegotiate how power systems interact with this new demand. Some sectors, like aluminum and steel production, will be less flexible, but others, like electric vehicle charging, heat pumps, data centers, electrolyzers, will offer meaningful chunks of flexibility. All of this means that the grid will need to grow, undoubtedly, across all dimensions as well. In fact, we estimate that the power grid of 2050 will be long enough to reach the sun. But this will happen gradually. It takes time to build grid projects, and although all ways to accelerate development should be considered, we are entering into an era where the net zero grid is likely going to lag behind net zero needs. So how does flexibility help? Well, here we see a week in July 2030 from our net zero scenario. During the second half of the week, we see that wind is really blowing, and so fossil fuels, shown in gray, are not really needed. Instead, the system can curtail solar generation and charge its batteries. And when the wind and solar aren't available, which we see in the earlier half of the week, the system can call up stored energy as well as run fossil fuel generation. And here we see how wind and solar and storage are impacting the capacity factors of fossil fuels by pushing them offline. Now, we look at the same week from the demand perspective. Here we see that EVs have grown to 10% of total demand. That's that layer of purple on top of base demand, and this segment of demand can flex to balance the power system. Here we see EVs expand during periods of surplus, and they contract during periods of shortage. In some ways, they become the lungs of the power system. The small share of heat pumps, electrolyzers, and flexible demand also do their share and take advantage of the sun during midday, and that role is going to grow over time. We know this. We are still in the early days, but EV adoption is growing quite rapidly across Europe, with cost parity expected to be reached by 2025 for most vehicles. And EVs are just the near-term opportunity for flexibility. Additional sources are going to come online out to 2030 and beyond. That includes heat pumps as well as other industry. The chart on the right shows how we see the share of different sectors and whether they will go to hydrogen or electrify in their path to decarbonization. Honestly, in either case, we will see many new opportunities for system flexibility, and so the demand side is rich with flexible assets, both in the near term as well as in the long term. And to conclude, the electricity grid is going through a significant change, but those changes offer solutions. In Europe, EVs will be a critical source of flexibility, but in specific geographies within Europe and outside of Europe, they're going to rely more heavily on stationary storage. These mixes will vary, but flexibility is a solution that will be needed and be sourced from a completely different composition of resources than it was in our legacy system. Thank you. That concludes my presentation, and I hope you all have a very good discussion today. Welcome back. To safely run a renewable system, we need a leading infrastructure and more flexibility, and the link between both of these things is digitalization, and that brings us on to our new... the next topic. We have Michael von Roeder with us, Elia Group's Chief Digital Officer. Michael, we are evolving from a traditional group of transmission system operators to a group of digital transmission system operators. Information technology is increasingly relevant. How would you pitch our digitalization strategy? IT is the foundation for any digitalization strategy, and therefore, we evolve IT. Yesterday, IT was basically a cost and service center, and today, IT is becoming a business enabler, a product development unit, essentially. And in addition, IT converges with our operational technology. So our grid assets, the new ones, they become smarter and become more IT-driven. Yeah. You also have more execution real time. Digitalization helps there as well. What you also see is that you have digital interfaces, that digitalization is not only in our own country, in our own company, I mean, but it goes much further. It goes beyond our company. It goes way beyond. It also goes way beyond different countries, by the way. In essence, digitalization opens the energy systems to new parties, be it startups, be it consumers who use EVs or heat pumps. And what it enables, they can control their energy management much better as consumers. Our job is to create a level playing field for everybody, to enable all those parties to become this integral part of the energy system. And that way, digitalization not only benefits our company, but it benefits every single consumer, and with that, society. So what we do is create a win-win. Yeah, indeed. It also helps to master the growing complexity of our activities. Can you give some examples to make it concrete? There's obviously plenty of examples. I'll make a few.... Digitalization can enhance decision making, be it controlling the grid, but also financial decision making, these kind of things. It enables better stakeholder interaction. For instance, when we build something, we want to interact with society to explain things. You can use digital means for that, and it also can be used to automate tasks. Keep in mind, you know, we, and Peter's gonna talk about this later, we need a lot of more people, but we also have a lot of more work, so automation is, I think, very important. All this we have to do in a robust and cybersecure way. Mm-hmm. Yeah, cybersecurity, you mention it. That might be something to pay more attention to, given the fact that we opened the system to those millions of electrical devices that will come. Yeah, indeed. What we do is we open the system, which increases. At the first instance, it increases the risk, because open is more risky. So what we have to do is we adopt a, we have to do, adopt a new cybersecurity strategy, which is called zero trust strategy, which means always verify, never trust, as a mindset. Yesterday, we had what we called perimeter security. You can imagine that like a big castle with big walls, which was our company systems, which, which, with which we controlled the grid. Tomorrow and today, every single house within those walls will have to be defended, and extending that to the whole energy system, every single system in the energy system has to be defended, so that extends our reach as TSO being responsible to make the whole system secure, and that's what we do with that. Yeah. The digital transformation, it has a technical dimension, so it involves the hardware, the software, connectivity, data processing, but there is also a business dimension that focus more on the opportunities, the successful implementation of the transformation. Let's start maybe with that, technical, dimension. What will this involve? So what we chose to do is what we call a platform approach. So before, we had one silo for one problem. So we built a system, a software system, we bought servers for one problem. Now, we try to develop common capabilities as a platform, and that means we can share capabilities between applications. The side effect, by the way, is that the data is also being shared, which will become important when you think about AI and such things. This gives us speed, it gives us flexibility, and also cost savings, and it avoids, for us, vendor lock-in with a single software or hardware vendor, and it increases resilience, and as we mentioned before, cybersecurity. Yeah, so you go from the silos to a platform, but that on its own doesn't create any value, so therefore, you need also a business transformation. Can you elaborate a little bit more on that? Sure. Yeah. Technology is never value as such. It enables creating business value, as you said. So what we do there is we bring business experts and software developers together, building joint teams, so we not only remove the technical silos, but also the organizational silos, and create new ways of working. Yeah. Can you give some examples again? I can give some examples. Katrin already mentioned earlier today, our vision paper on flexibility, which describes the need of consumer-side flexibility. Mm-hmm. For that, we have a product team, which is called consumer centricity, which builds a number of digital products. Yeah. Okay, let's make this a little bit more concrete to our audience. One digital solution that was recently launched is the so-called multiple BRP. Industrial players connected to the Elia grid will have the option to split their consumption in two: a flexible and non-flexible consumption. And we have a short video to share with you about it. In the future, the system will require more flexibility to keep the energy transition affordable and reliable. Elia Group is working hard to make this possible and unlock the real power of flexibility. For example, by laying the groundwork for flexible assets to find their way to the market. For this, allowing multiple balance responsible parties behind the meter can have a huge effect. They make it possible to split the site's flexible and non-flexible assets. For each asset, the BRP can offer a tailor-made financial optimization. This gives more opportunities to the site owner and also increases competition for energy services behind the meter. Imagine an industrial site with two BRPs. Production processes are optimized by a BRP with a fixed and risk-free energy contract. The company knows how much electricity this non-flexible process needs and doesn't want to incur risk on its energy supply. But the site also has batteries, PVs, and EVs. For these flexible assets, the company has another BRP that performs financial optimization based on dynamic market prices. Yeah, that is a digital solution, Michael, for our customers. Can you also give an example of how digitalization can improve our own operations as a system operator? Sure. The first one which comes to mind is our modular control center system, which basically replaces the current stack of EMS, energy management system, and SCADA systems going forward. This will support our operators in the control center to control the grid- Mm-hmm ... which becomes more complex, as we established, but also will support our offshore platforms to manage them and control them. So here we have a perfect example of the platform strategy I mentioned. We reuse roughly 80% of the capabilities between those two applications. Mm-hmm. Basically, that means we take our destiny, in terms of our core business, in our own hand. Doesn't mean we don't buy any software, but the base platform we do in-house. So we talk about software, digitalization, and data. Yeah. Okay, thank you, Michael, for this update on digitalization. The MCCS project that Michael mentioned is on track to reach full implementation by 2025. And recently, the MCCS team hosted internal events in Berlin and Brussels, providing updates on their work. They impressed the audience with demonstrations which showcased the potential of MCCS. In a world where the electricity system is nearly 100% based on renewables, it's extremely relevant to be able to manage this system. We will see more volatility, we will see more incidents, so we need automation and digitalization. MCCS stands for the Modular Control Center System, and this is our Elia Group approach to creating a new future-driven environment for the control centers. It will become very complex to manage the system with a lot of renewables and many actors reacting to price signals, and the human will be unable to manage all that. And so for that, we need to develop algorithms to support the operators and execute the actions that are needed. We experienced in the past that regular products from the market cannot really fulfill the needs we have. So that's why MCCS is really something that we urgently need, because we really need a new control system in order to manage the energy transition. What we learned in the past is that if you use the classical way and you just organize a tender, and then the big software companies respond to it, then it takes 7-8 years to implement a new system in a control room. That's simply too long. So by building it ourselves, by building functionalities, we really hope that in, in a few months' time, we can create new products and react to new, new problems arising. For our control center colleagues, it's quite important to have a visualization of the complete grid. You can see now here that there is an incident. We can directly zoom into this point and getting the first information about this incident. There is a current limit, and based on this current limit, the control center colleagues can now start to observe more in detail what is behind this incident. This is quite helpful for the control center colleagues to have a very short way to get new information and notices about events. 50Hertz and Elia have the same challenges. They are facing the same future. So in two brains, you have more than in one. So by working together, we can actually find more creative solutions on the one hand side, and be quicker in developing them. We are creating some components on our own, but we are creating also the architecture, which makes it possible to having a kind of community or collaboration. This community and collaboration is open for other TSOs and DSOs and, energy partners to be directly involved, and also creating new components which fit into this environment. Collaboration is quite essential because as TSOs, we are facing a lot of the same challenges, and especially when it comes to digitalization. Digitalization is an enabler that actually make it possible for us to solve our problems. And I think we are clever if we collaborate, so we can increase the speed. Ladies and gentlemen, it's time for a short break. Grab a coffee, take a moment to do whatever you want. After the break, we'll give an update on our non-regulated activities and our talent management strategy. We have an extensive chapter on financing, and we'll conclude with some insights on financing our future and a financial outlook. We'll be back in 10 minutes. See you!... Welcome back. We'll now talk about the non-regulated business of Elia Group. Just a few days ago, an important milestone was reached. Elia Group entered into a firm agreement to acquire a minority stake in energyRe Giga, a clean energy company in the U.S. Catherine, it doesn't came as a surprise. If you follow a little bit, Elia Group, you knew that we had that ambition. Yes, exactly, and I would say that the transaction aligns perfectly with the group's growth strategy, which centers on expanding our activities beyond our core perimeters and reinforcing the group's development of sustainable energy solutions. Based on our shareholding and governance rights, the transaction will be reflected as an equity pickup in the group's consolidated accounts, with the closing currently expected in the first quarter of 2024. Okay, before we continue our discussion, let's first present the projects that are part of the deal. We have footage from the virtual signing ceremony that took place last week. Here we are. Congratulations. We have decided to go in the US 18 months ago. We have looked to different opportunities, and 6 months ago, we identified energyRe as one of the best options that we have seen. energyRe is igniting the U.S. energy transition. We are mission-driven to decarbonize American cities with new sources of clean, reliable power and modern, what I would call, state-of-the-art electric grids. They have very strong local players. They have an ability to build local partnerships, and so they are very complementary to, Elia Group. Elia Group's experience delivering high voltage DC transmission and addressing one of the biggest problems that we have in the U.S., which is congestion, aligns really, really well with energyRe's portfolio of high voltage DC projects that are transforming and modernizing America's electric grids. The U.S. is a very attractive market, for us. First, we can expect a lot of growth coming from different project. Second, we have recently seen a massive shift towards sustainability, which is supported by a robust policy framework and by a number of supporting schemes mechanism that have been developed at the level of the states. There is a very important need to build a new grid, in the U.S., to update the grid, in order to enable the energy transition. As investor within energyRe, of course, we'll take a strategic position, and we will help deliver a number of projects that they have in the portfolio. The first one is Clean Path New York, the largest renewable energy project in the U.S. right now. It combines 3.8 gigawatts of new wind and solar power, and a 175-mile underground, 1.3 gigawatts high-voltage DC transmission line that connects directly into New York City. Our second project is Leading Light Wind. This project can power up to 1 million American homes with 2.4 gigawatts of clean energy, connected with an HVDC transmission line into the load center. The third project is called SOO Green HVDC Link. This is a 350-mile, 2.1 gigawatts underground HVDC transmission line that will connect two of the largest energy markets in the U.S., and deliver clean power, again, to one of the big load centers in the U.S., which is Chicago. All project are at different stages. So the first one will be commissioned around 2026, and probably the last one around 2029, 2030. What is it all about? Transmission line that will be commissioned in the latest phase, and a number of smaller projects for generating the clean electricity, so solar and wind infrastructure, some of them being already commissioned in 2026. I think for us it's a very important milestone in the expansion of the company outside of Europe, and I'm very much looking forward to the great things that we will do together. Let's make this, this partnership a great success together. We will invest $400 million, Catherine, what contribution can we expect from this transaction to the results of Elia Group? Yes, of course it will be accretive over time to our earnings, as the investments are set to yield a return that exceeds the current returns on our home market. In addition, the business model of energyRe is based on capital recycling, with first sales of small generation assets in 2026. Yeah, we will explore the fundings later in detail, but however, how will Elia Group finance this particular investment? Yeah. Given the first release of funds over time, the effect on our balance sheet is very limited. The transaction is entirely funded through a bridge loan, which will be refinanced in accordance with the financial policy of the group. Yeah, the offshore sector in the U.S. has faced some challenges in the recent months. Mm-hmm. Have they been taken into account? Yes, indeed. We have recently observed impairments in the future U.S. offshore market. They were incurred by specific projects that secured Power Purchase Agreement when interest rates and raw material costs were relatively low. Unfortunately, and despite the shifts in macro environment, such as the higher costs, increased interest rates, and project delays, the proposed revisions for higher PPA years were not accepted for certain projects, resulting in substantial write-offs. In our evaluation process, we have considered the current market conditions and leveraged our experience in the supplier market. Additionally, there is an expectation that future PPAs in the offshore wind industry will integrate inflation links to ensure they reflect changes in market metrics, encompassing interest rates and raw material cost. Yeah, interesting. That could be one of the topics of Elia Group's next viewpoint on putting offshore to work. Thank you, Catherine. So far, ladies and gentlemen, we focused on strategy, infrastructure, on digitalization, but what about our people? As the energy sector undergoes a significant transformation, there is a growing need for professionals with the right skill sets and innovative thinking. Every year during the first week of December, Elia Group hosts an innovation week, both in Berlin and in Brussels. Several events are organized as part of this, including an innovation fair. We were able to gather the thoughts of some of our staff about innovation at the group. An exoskeleton is an assistive device. It can assist people when they're doing lifting work or overhead kind of work. If you can implement these into these factories or plants, people will be much more efficient, and people would face less issues like musculoskeletal diseases. Paky is being offshore, and it has been tested to walk around the platform, but also helping the GIS inspection, and also to support in remote switching, to confirm it has really been switched off. The Grid Navigator is really meant to be a mapping tool that allows us to create new ideas, how to connect the future wind farms and the next wave of offshore hubs to the coastlines. For those who want to learn more about innovation at Elia Group, you can visit the group's innovation website. We've just published our brand-new innovation strategy online. The team has worked hard on it, so make sure to take a look. In the meantime, Peter Michiels, the group's Chief Alignment Officer, has joined us. Peter, welcome. Over the next five years, we will invest more than EUR 1 billion in Belgian engineering. We will start our non-regulated activities in the US. So let me guess, finding the right skills and talents, that's very high on your agenda, I suppose? Yes, Marleen, if it wouldn't, we would have a, a big problem, I guess. So we talked about the enormous pressure on, expanding the grids and the big investments that go with that. And to do that, of course, to realize this ambition, we need a smooth supply chain, not only of materials, but also of talents, of course- Mm-hmm ... if we want to deliver these infrastructure projects on time, for society to take benefit of them. Yeah, can you put a number on the number of people that we need in the next four years, for example? Yes. Well, according to the current planning, we will need to recruit up to 1,400 new talents over the next four years, which is quite a big amount, as you can see on the slide. However, we have a track record of scaling up the company in the last few years. For example, in the last year, we already successfully recruited and onboarded 450 new talents. But of course, the scale and the environment in which we will need to realize this in a market that is quite competitive, we should not rely just on old methods to do this. So we are reviewing the entire chain from recruiting and onboarding people, to make sure we can do this in access- Yeah ... successful and sustainable way. That's quite a challenge. What is, as a group, what is our unique selling point? Well, I could ask you, Marleen. I mean, you look like a very happy and engaged employee. But of course, we have a great project that is quite attractive to the current generation of people on the labor market. I mean, we have a central role, a pivotal role, in making the energy transition happen, and in that sense, you know, fighting climate change. However, we also have a number of other key topics and attraction points that are really relevant today. I mean, we're becoming more and more an international company. Mm. So we can tap into a much wider talent pool beyond our traditional Belgium, German, talent recruitment areas. As we will see later, we are becoming more and more an international company. We also spend quite a lot of efforts on telling the right story, because although we do a lot of great things, they're not always very well known with the large public. So we're investing quite a lot in the branding, the storytelling, but making sure that all the things we do are also known in the market. Thirdly, of course, we are not so naive to think that we will find up to 1,400 talents that are fully skilled and equipped to start and be operational right away. So on one hand, we recruit more and more for the right mindset and the right attitude, and then we can further develop and train them on board. But also you're looking at diversity and different profiles. We'll come back to that later. So not necessarily people with the right degrees and background- Mm ... because that's, I think, a naive concept to start with, but we're looking at a very broad range of- Yeah ... measures to make sure this happens. That brings me to the next question, eh? You're growing, but how can you ensure that you're growing in a sustainable way? Yes, of course. The key ambition should be to reinforce the project team so we can build the infrastructure in time, as previous speakers have already indicated. Mm. But also, of course, we are currently embarking and have been embarking on a journey of mapping out not just the capabilities and the skills needed for today and tomorrow, but also looking at a five-year horizon, so that we already future-proof the organization at the same time by both upskilling the current workforce, but also recruiting people with the right background and the right attitudes, as we go along now in the next few years. And of course, as we, as Michael explained, very heavily investing also in digitization of our business. Digital technologies will also help us to be more efficient, but also be much more efficient in onboarding and training, people, and making them ready for business- Mm ... participation much quicker, which in the end will lead to a good retention rate, I'm sure. Yeah, indeed, we just saw it on the slide. The turnover rate is quite low, 5.46. We have to say that this rate includes both the planned and the unplanned leavers, so the approach is paying off finally. Yeah. Yes, we could very well say so, because the people leaving us for other opportunities, so excluding people who retire, is quite low. And of course, we have every interest of keeping that turnover as low as possible, as we are a big investor in people. We spent a lot of time and effort into training, certifying, keeping people safe and professional in the job. Which has also been recognized in the certification as a top employer for now many years in a row in Belgium. And every year we succeed even in getting a better score, which means we are still improving the way we do things. And specifically last year, we took a big jump forward on our realizations on specifically diversity, equity, and inclusion. Yeah. Elia Group, our staff works with high-voltage equipment at height, increasingly more at sea. So how are we keeping everyone safe, and especially the new ones that will arrive, and the subcontractors? Indeed, and let's not be. Let's be clear about it. I mean, keeping people safe and sending people safe back to their families every day, every day in the year, remains our top priority. Yeah. We are a big investor in people, not just in their physical safety, also in their psychological safety, wellbeing. And in that sense, we spent a lot of time selecting, but also training people, to be able to do that, and we extend that also to our subcontractors. Yeah, I mean, there's lots of people working on our building sites from subcontractor companies. We take the same responsibility and seriousness in keeping them safe as our own staff. Mm. To that aspect, I mean, we have also scaled up our training facilities and certifications for people working with subcontractors, so they get properly trained, certified before they enter the workspace. Yeah. In that sense, I think the practice of that over the last few years has paid off. Yeah. We emphasize safety a lot. Can you put some numbers on it? Yes, of course. I mean, if you look at the track record we've achieved over the last few years, we see that the total injury rate and incident rate has gone down tremendously. I think, that's because both, on reactive measures, so when we measure what's going on and then adjust our safety systems accordingly, we can see that has resulted in a reduction of the frequency rate of incidents, but also the severity rate. So when an incident happened, it's much less serious, than before, and as a result, the total recordable injury rate has gone down by over 50%. Now, also, on the proactive side, I'm very proud to say that the learning factor, which is the reporting that people do of potentially unsafe situations, with all the campaigns and education that we've done has gone up by 130%. I can also be confident that this trend will continue in the future. Yeah, and to be fully prepared in case of emergency, our teams often undertake a safety trainings, as Peter said, both on land and at sea. A few weeks ago, our offshore assets team set up a rescue exercise in collaboration with the Belgian army. ... unconscious victim has fallen from a cherry picker. We have already did the contact with you guys for having the helicopter over here. Wow, impressive images. Peter, Elia has been named as a top employer in Belgium several times now. You mentioned it already, but this year we also won the Trends Impact Award for our Let's Talk About Burnout community. So safety is crucial, but so is wellbeing. Absolutely. I mean, we are a responsible employer, I would like to say, that cares about people. So that's not just about physical safety, it's also psychological safety. And we have many projects that have been running for a number of years, and I'm very proud to say that with this award, it's a very great recognition of what we've achieved here. Specifically seeing the potential impact of stress and burnout on a team that is highly stretched. So, I'm very proud to say that our absenteeism rate, so people being off work for a longer period due to illnesses, has decreased quite a lot and is at a quite good rate of 3.6, which is still too much, I argue, but it's very good compared to the overall market. Of course, the team has done a fantastic job of creating a community where these things can be discussed, and therefore people can be helped before these things happen. Yeah. Another pillar of our Act Now program is, diversity. Can you give some numbers in that regard? Yes, absolutely. And let's start by saying that, of course, we are a company that works quite a lot with public money through the tariffs in our regulated business. So in that sense, that's a privilege that we have. It also creates the responsibility of doing something back for society, and in that sense, we want to be a good reflection of the diverse societies that we operate in. And that goes beyond just having a good gender balance. It also goes beyond that in age balances, being open to people with different opinions and backgrounds, et cetera, and opening opportunities for everybody inside this company. And as you can see from the numbers, we are increasingly becoming more international, but we're also increasing the number of female staff in our operations, also in technical roles. Specifically, we put an emphasis on putting more female talent in leadership roles, as we think this will make us a better company and a more efficient company in the end. Okay. Thank you, Peter, for sharing your thoughts. Throughout today's event, we have highlighted different milestones that we have reached as part of our Act Now program. If you want to have a closer look at the progress we have made, please take a look at the overview provided on our website.... Let's talk money. Over the last 18 months, the financial markets have completely changed. The current environment is characterized by increasing interest rates, and this is having far-reaching impacts on different sectors, with regulated utilities right at the forefront of these. Welcome, Marco Nix. Negotiations related to the new regulatory period have been taking place in this context. Not an easy task, I can assume. Indeed, it's a challenging time and exciting times as well. Throughout the year, we have intensively interacted with regulators in Belgium and Germany. We value, in principle, the willingness to adapt to a changing market. We must ensure that adequate capital investment continues to flow, as this is crucial, not only to maintain momentum of the energy transition, but also to prevent us becoming a bottleneck that could impede our progress towards a sustainable future. Today, we are here to share the insights and the progress we made. Yeah. Marco, Elia Group operates under different regulatory regimes. Before providing us with more specific details on Belgium and Germany, can you give us a high-level overview of the situation? The group comprises two regulated grid operators in Belgium and Germany, and a non-regulated segment where interconnection between Belgium and the UK currently contributes most to the result. Our earnings continue to be shaped by these distinct regulatory frameworks. These regulatory frameworks have varying impacts on our financial performance. The bulk of our cash flows originates from Belgium and Germany. Germany will continue to contribute roughly 50% of our earnings. Belgium contributes around 40%, and Nemo Link, approximately 10%. Yeah. Both frameworks, they will start from January onwards in both countries, so that's, that's pretty particular, I would say. Indeed. We are currently at the beginning of a new regulatory period in both Belgium and Germany. Something what happens only every 20 years. And a revenue reset on top of, for Nemo Link, following its initial 5 years of operation. The new regulatory period in Belgium will extend 2027, while in Germany it will continue until 2028. Okay, let's do a deep dive now. Turning to Belgium... Hello, Yannick. Hello. In mid-November, the CREG officially approved the tariffs for the next regulatory period. Can you share the outcome of the discussions with us? Yes, indeed. Over the past year, we engaged in numerous discussions with our Belgian regulator, the CREG, leading to the approval of the tariffs for the period 2024-2027 at the end of November. These tariffs will equip Elia Transmission Belgium with the necessary resources to fill our role in advancing the energy transition, particularly through the investment program we presented earlier today. A meaningful part of the tariff negotiation was about the return on equity. This was relating to the related circumstances, specifically the rise in interest rates, as mentioned earlier. The proposed adjusted tariff methodology is currently undergoing a public consultation process, which is due to end on 22nd of December. This will be followed by the final approval in the course of January 2024. As you may recall, in June last year, the fair remuneration for the forthcoming regulatory period was determined using the CAPM, which utilized a risk-free rate of 1.68%. Now, the regulator has introduced a new mechanism to the methodology. It is based on the actual 10-year Belgian state bond, called the OLO, instead of a fixed risk-free rate. Yeah, and could you clarify how this new element of the remuneration is determined? Certainly, yeah. The regulator has introduced an additional compensation that is now tied to the changes in the ten-year OLO over time, aiming to better align the mechanism with the current market conditions. For this, the regulator employs the ten-year forward-looking OLO as the reference rate. For each year, the regulator will calculate the annual daily average OLO over average of the ten-year OLO. He will then carry out a three-step assessment, which is cumulative. A first step is shown in the box on the top, called number one. As long as the ten-year OLO falls within the range of 0%-1.68%, the fair remuneration remains fixed at 4.1%, as initially outlined in the tariff methodology. This establishes the baseline. Then, a second step is shown in the box in the middle, called number two. If the OLO of the... If the ten-year OLO fluctuates between 1.68% and 2.87%, the entire average equity will receive an extra compensation equal to the difference between the ten-year OLO and 1.68%. A last step is shown at the bottom. If the rate surpasses 2.87%, you will receive the remuneration from step 1 and 2 on the entire average equity, plus a contribution proportional to the difference between the ten-year OLO and 2.87%. Hereby, the regulator has decided to differentiate the remuneration between the old RAB and the new WRAP. As you can see on the bottom right, the Old RAB being the assets commissioned before the 1st of January 2022, which will receive 50% of the difference, while the new RAB, which are the assets commissioned after the 1st of January 2022, will receive the full 100% of the difference. End of 2021, the regulatory asset base stood at EUR 5.4 billion, with an oldRAB of EUR 5 billion, which gradually decreases with the depreciation. The remaining EUR 400 million are assets under construction and count towards the new WRAP. As a reminder, the WRAP includes the entire CapEx of ETB. So in summary, this revised compensation structure considers both the fluctuations in interest rates and facilitates the growth of the grid, which we believe is a fair but positive development. Yeah, indeed. You provided us with some clarity on the mechanism, but what about the overall returns in Belgium? Sure, Marleen. The regulatory framework remains a cost-plus model with coverage of all the reasonable cost, including our fair remuneration and incentives. You know that we fund our operation in accordance with the established regulatory gearing of 40% equity and 60% debt. The fundamental principles of the regulation remains unchanged. First, we have no financial risk associated with volume fluctuations. Revenue differences caused by the variation in volume are carried forward to subsequent regulatory periods. Also, the regulation incorporates the embedded debt principle, recognizing financial cost as uncontrollable cost that can be fully recovered through the tariffs. When it comes to our remuneration structure, it consists of two components. First, as discussed just now, a fair remuneration, which is an equity-based compensation linked to the changes in the RAB. The return on equity is applied to 40% of the average RAB. A second element of our remuneration is tied to incentives. These incentives are designed to encourage Elia to improve its performance in various regulated activities in Belgium. These incentives are expressed as well as a return on equity and have an absolute value cap. Based on historical data, we anticipate that these incentives will contribute to around 1.4% to the result. Based on ETB's CapEx plan and considering the Belgian OLO around today's level, this will result in an average regulatory return on equity of around 7.2% for the period. As explained, this return will be subject to the evolution of the 10-year OLO and the timely execution of our CapEx plan. Please be aware that this represents the regulatory return. The overall return at entity level also includes adjustments links to IFRS restatements, but more profit guidance on entity level will be provided later on by Catherine Vandenborre. Okay, very clear, Yannick. Thank you. And let's zoom in on Germany now. As mentioned, Marco, Germany is accelerating its work to reach a climate neutrality by 2045. The new German regulator, the new regulatory periods, I'm sorry, starts in January. Could you tell more about it, please? Yeah. The German regulator acknowledged to the importance of having an investment-friendly regulation that can attract funds. Achieving energy, sovereignty, and climate neutrality by 2045 is of paramount importance. It's worth noting that discussions have been constructive, resulting in a slight improved outcome. Yeah. Moving on to the specifics of a regulatory framework, could you start by outlining its fundamental principles? For sure. In Germany, in principle, there exists two distinct regulatory frameworks: the revenue cap principle for our onshore operations, which is an incentive regulation, and the offshore grid surcharge for our offshore business, which follows a cost-plus model. For our onshore activities, we operate under a system that covers a significant portion of our operational expenses and existing assets. The basis for calculating these revenues is established through a cost assessment carried out by the regulator, referred to as the base year. In this context, the year 2021 has served as the reference point, the base year, for the upcoming regulatory period commencing in 2024. The approved cost level appears to be reasonable in addressing the current operational challenges. If the actual costs fall below the base year costs, the excess performance benefits the shareholder. The uncontrollable costs or base year costs are adjusted upwards to accommodate inflation, while individual efficiency and sector efficiency requirements may reduce them. In the case of 50Hertz, operating at 100% individual efficiencies, no adjustments are made. For the general productivity factor, Xgen, reflecting the sector improvements, the review is still ongoing by the regulator. On top of the uncontrollable costs, we are granted controllable costs, mainly covering energy costs relating to steering the grid, which are passed through via the regulation. They currently account for around 60% in 50Hertz revenue cap. Furthermore, the revenue cap undergoes annual adjustments to account for new investments falling under the capital cost adjustment model. The regulated asset base will be updated on an annual basis with no differentiation between growth and replacement investments. The regulator also stipulates the financing structure for our CapEx, with maximum 40% accepted as equity and minimum 60% as debt. For the cost of debt remuneration, the regulator applies several methodologies. In the CCA model, the cost of debt is calculated with a predefined generic rate. This interest rate is derived from two reference rates provided by the German Central Bank, and we are confident in our ability to secure financing at rates below the set threshold. If we manage to stay below this threshold, the benefits accrue entirely to our shareholders.... The cost of debt for our existing onshore assets is fixed to the actual cost of the last base year 2021. Concerning equity remuneration, the regulator's approach distinguish between assets constructed or commissioned before 2024 and those from 2024 onwards. Assets predating 2024 will be remunerated at the originally established return on equity of 4.13% post-tax. New investments will receive remuneration at a higher return on equity rate of 5.78%, based on a capital asset pricing model, which takes into account the current estimates of the risk-free rate over the year 2024, the running yield of outstanding German securities, and a risk premium on top of 3%. Okay, that was onshore. Let's talk now about offshore. The regulatory framework for our offshore operations is quite similar to the Belgian system. It involves annual updates of fair remuneration, but without any incentive components. The mechanism for cost allowance is distinct, as offshore costs are determined on an annual basis. In case the actual costs exceed the budgeted amount, such as in the event of higher maintenance costs, these excess costs are recovered in the subsequent year. This involves a pass-through mechanism, with the financial burden shared through the offshore surcharge. For our offshore investments, we also secure financing with 40% equity and 60% regulatory gearing. The cost of debt is entirely passed through, based on the funding raised in the respective year. In terms of equity remuneration, it closely resembles the onshore model, with assets pre-2024 receiving a 4.1% return, and assets post-2024 obtaining an average of 5.78%, contingent on the evolution of interest rates. Okay. What does this now mean in terms of the overall ROE? There are four components contributing to our overall remuneration. First, return on equity applied to 40% of the regulated asset base. Second, outperformance incentives as part of our onshore regulatory framework. Thirdly, consideration of IFRS accounting treatments, particularly focus on capitalized borrowing costs. Fourth point is the leverage at the Eurogrid level. The cumulative impact of these factors results in a total return on equity for the period ranging between 8%-10%. Yeah, if you expect further changes to the German regulatory framework over the coming year? Given the complexities and the challenges we face today, it's obvious that establishing a sustainable regulatory framework is essential. The recent outcome of the cost assessment gives some certainty that costs can be covered by efficient management of operation in the near future. But the base year mechanism is not made for growing business in a complex environment. All the requirements on digitalization and cybersecurity, for instance, will require further efforts. And although striving for efficient management, likelihood of operational outperformance is rather low. Furthermore, uplift of return rates is a first and positive step, but attracting new capital will remain crucial to realize the CapEx plans. On these elements, we will continue to engage with the regulator in the coming year to come to a future-proof regulation addressing these challenges. Yeah. Okay. Thank you, Marco. We discussed the framework in Belgium, in Germany. Let's zoom in on the third regulatory regime of Nemo Link. In 2022, Nemo Link's contribution was around 10% of the net result of the group. On average, it will contribute between 5%-10%. Yannick, as the model is fixed for 25 years, can you remind us what drives this variability in the contribution? Yes. As you know, Nemo Link operates under a cap and floor model, as illustrated on the graph. The model is a building block approach consisting of the depreciation cost on the regulated asset value, OpEx, and commission's cost, determined for 25-year, and tax. On these blocks, a minimum and a maximum rate of return is added to constitute, respectively, the floor and cap level. As a reminder, any revenue below the floor is recovered from the tariffs. Any revenue above the cap is returned to the tariffs. Nemo gets revenues from three elements. First, congestion income. This is the price Nemo Link receives for granting its interconnector capacity to Belgian or U.K. electricity traders, which they are willing to pay to benefit from price differentials between the Belgian and the U.K. electricity market. The interconnector capacity is auctioned by Nemo Link in different delivery periods, like year ahead, day ahead, intraday, to physically hedge the electricity price. As a second, smaller, but growing driver of the revenues, we have the capacity market revenue. This relates to governments locking in capacity in order to have it available for future capacity needs. As a last source of revenue, we have auxiliary services, representing a smaller portion of the total revenues. Auxiliary services are, for example, reactive power, voltage support, and network restoration services. Yeah. Next week, together with the British Embassy and with National Grid, we are celebrating the fifth anniversary of Nemo Link, but that means also that the first cumulative five-year periods will come to a close at the end of this year. What does this mean? ... As Nemo Link exceeded the cap in the cumulative five-year assessment period, the final amount to reimburse to the Belgian and U.K. tariffs is determined and paid back. From 2024 onwards, a new five-year assessment period starts. The cumulative revenues for 2024 to 2028 will be compared to the cumulative allowed cap and floor over this period, and in case of an excess or deficit, returned to or recovered from the tariffs. In the current assessment period, there was a high variability in the performance between the first two years of operation and the years thereafter. This was driven by the energy crisis. Therefore, Nemo Link benefited in 2021 and 2022 largely from a catch-up of all allowed cumulative revenues, leading to extremely positive results in this year. In the next assessment period, it is expected that Nemo Link's performance will normalize in line with the market after the energy crisis. Okay, thank you, Yannick, and thank you, Marco. We have covered all regulatory regimes in detail. Our next topic is funding, and Catherine Vandenborre will be joining us again for this. We have just learned about how the updated regulatory frameworks will support new investments. This is important giving our strong organic growth. In light of these developments, Catherine, could you guide us through Elia Group's financial policy? Yes, a key topic for our CMD of today, of course. Elia Group's financial policy is designed to ensure the financial stability and the continuous access to the capital market, as well as fostering growth and create long-term value for all shareholders. Note as well that our financial policy remains unchanged compared to previous communication. I will start by reminding you the three pillars on which it is based. Firstly, we remain firmly committed to a minimum triple B flat target rating for Elia Group and for Eurogrid, and a triple B plus rating for ETB. We are confident that these targets are realistic, deliverable, reflecting the strength and stability of all regulated operation, the CapEx profile, and the group strategic ambitions. Those rating targets are aligned with the current rating levels of the group, of Eurogrid, and of ETB, as just confirmed by S&P. The key metric, which is applied by S&P, is the FFO to net debt. For ETB, S&P requires an FFO to net debt of at least 9%, while for Elia Group and for Eurogrid, the agency requires an FFO to net debt comfortably above 6%. We anticipate the leverage profile and credit metrics of each entity to stay within the agency's predefined targets. Secondly, any form of debt financing at ETB and Eurogrid will continue to be raised separately and independently. The Elia Group will also continue to provide equity funding in order to maintain a capital structure aligned with the regulatory frameworks and gearing. In practical terms, Elia Group will finance its CapEx plan in Belgium and Germany, according to the set gearing ratios. Those ratios correspond to 40% equity and 60% debt to RAB for ETB, and 25% equity and 75% debt in relation to total assets for Eurogrid. Thirdly, Elia Group maintains its current dividends policy tied to inflation. Consequently, we will continue to reserve a significant portion of our results, averaging over 50% throughout the period, to support financing for investment in both Belgium and Germany. Additionally, we are actively seeking to obtain capital grants linked to our CapEx projects, such as PCIs and PMIs. Last week, the European Commission released the European Grid Action Plan and the initial list of PCIs and PMIs projects. This list includes many projects from the Elia Group, like the Hybrid Interconnector project, Triton Link, and Nautilus for ETB, Bornholm Energy Islands for 50Hertz, also Brabo II and Brabo III project, and the interconnection between Lonny and Gramme for ETB, as well as the SüdOstLink project for 50Hertz. Securing PCI and PMI status is a prerequisite to apply for European funding from the Connecting Europe Facility. Overall, the group targets to receive at least EUR 500 million in grants from Europe or national authorities over the next years. Now, looking forward and to support our growth in the longer term, Elia Group might explore funding its accretive investment in hub growth by issuing new equity or equity-like instruments. So even considering equity-like instruments for our organic growth. This will result in a net positive impact on EPS for all shareholders, as the regulatory asset base and regulated income will grow faster than they otherwise would do.... Like Bernard mentioned in the video that you saw, and I, like I said earlier today, Publi-T remains supportive of Elia Group's strategy and committed to the execution of this plan. In this context, Publi-T is organizing itself to maintain its role as the core shareholder of the Elia Group. Constructive discussions are underway, and agreement in principles have been reached between Publi-T and Sovereign Fund in Belgium, in view of strengthening the participation of Publi-T and possibly supporting a capital increase. Presently, the group has sufficient balance sheet headroom to fund its near-term contributions to ETB and Eurogrid CapEx plans with retained earnings and senior debts. Therefore, I confirm that there are no plans to raise equity for at least the next 12 months. Okay, what does this mean in terms of targets at group level, Catherine? Can you provide our audience with, with some more guidance on this? Yeah, and I will start with a short overview of the key CapEx figures from our long-term plan, it has been presented today during this event. So in Belgium, for 2024, we anticipate investing approximately EUR 1.4 billion, with a total CapEx plan over five years amounting to EUR 9.4 billion. This is expected to result in a rapid growth of around 18% per year, leading to total RAB at the end of the five-year period, close to EUR 13.5 billion. In Germany, for 2024, our investment is projected to be around EUR 3.3 billion, with a total capital expenditure plan over five years totaling around EUR 21 billion. This is forecasted to lead to a RAB growth of approximately 25% per year and a total RAB at the end of the 5-year period, close to EUR 19.5 billion, based on our 80% ownership. Overall, at group level, this means that we will be investing around EUR 30 billion, demonstrating a yearly organic growth of around 19% over the next 5 years. I would like to remind you that this RAB only includes 80% of 50Hertz and doesn't reflect our investment in Nemo Link. Now, let's have a look at the financial performance we expect per segment. For the regulated activities in Belgium and Germany, this performance will be mainly driven by the growth of the regulated asset base, but also the evolution in risk-free rate following the revision, sorry, following the revision of our regulatory remuneration. Let's begin with Belgium. For 2024, we are confident in reaching a net profit ranging between EUR 200 million and EUR 230 million. This profit is considering a Belgian ten-year OLO of around 3.3% for the year. Over the entire regulatory period, 2024-2027, we expect to achieve an average IFRS return on equity between 7%-8%. These projections are considering the investment profile as presented earlier, and an average risk-free rate of 3.2% over the period, based on the latest projection of the Federal Plan office. In Germany, for 2024, we are confident in achieving a net profit ranging between EUR 245 million and EUR 275 million. This profit is considering a base rate of 2.79% for the regulatory return on equity, as proposed by the regulator. Over the entire regulatory period, 2024-2028, we target an average IFRS return on equity between 8%-10%, based on similar base rates. For our third segment, including the non-regulated activities, Nemo Link, as well as WindGrid, and its U.S. investment in energyRe Giga, we expect for 2024 to report a loss to the group results in a range of EUR 35 million-EUR 45 million. This expected loss is mainly composed of three items. First, Nemo Link will positively contribute for about EUR 25 million, depending ultimately on the availability of the interconnector. Secondly, the operational activities of the holding, other non-regulated activities like EGI and re.alto, the development of WindGrid, as well the funding cost of energyRe Giga, will lead to a loss in a range of EUR 40 million-EUR 45 million. Finally, the group will also use balance sheet headroom in 2024 to fund its contribution to the Eurogrid CapEx plan, leading to funding cost of around EUR 20-25 million for the existing and the new debt, depending on the evolution of interest rates. Finally, let's have a look at the overall expected performance at group level, and as mentioned earlier in this presentation, most of our revenues stem from regulated activities. Whereas revenues and EBITDA encompass various pass-through items, our level of net earnings ultimately reflects the benefits of our regulated business that accrue to shareholders. It's why our guidance predominantly focuses on return on equity. Additionally, going forward, we will also provide clear guidance on the net profit for shareholders. It's important to emphasize that all our guidance excludes any potential impact from M&A transaction.... Based on the performance of the segments, we anticipate that the net profit attributable to Elia share, excluding of non-controlling interest and a hybrid interest, will range between EUR 335 million and EUR 385 million. This points towards an adjusted return on equity between 7%-8% for 2024. Over the next 5 years, and reflecting investments at ETB and Eurogrid level, we anticipate that the net profit Elia share will grow at a compound annual growth rate of approximately 20%, considering today's interest rate projection. Also, we are confident to achieve a double-digit earnings per share growth over the upcoming 5 years, and taken into account possible capital increase. Finally, we will continue to pay out a reliable dividend to our shareholders, protecting against inflation. Okay, thank you, Catherine. That was a lot of text, but you did it excellently. It was really clear. Thank you. So, ladies and gentlemen, we have shared a lot of information with you today, and we are getting ready for the Q&A session. Stéphanie Luyten, our investor relations manager, will guide us through this. Stephanie, could you already share the first questions with us, please? Yes, Marleen, and it has been very busy here, backstage. I have received a lot of questions around different topics, so if it would be okay, we would first proceed with Catherine. Questions obviously related to the funding and everything she has explained. So maybe, Catherine, the first question for you would be: could you give us some more clarity in terms of timing, and also in size, on what we could expect for future equity n eeds? Sure, Stephanie. Because I think the topic is extremely important, I will maybe start by recalling the principle that we apply for the funding, which, like we just said, are based on the gearing ratios which are defined within the regulated entities. That's the first step. We take, of course, into account as well the dividends that we will pay, and so the reserved earnings that will come and that will fund partially the activities. And finally, we deduct the grants that we will seek from European and national authorities targeting at least, like mentioned, EUR 500 million. What does it mean for the rest, taken into account this information coming from the financial policy, that there is a scenario where you might expect equity or equity-like instrument issued by Elia Group? Of course, before doing that, we will look at which type of instruments do we want to issue, and making sure that if there is a capital increase, this would be accretive for the shareholders, meaning that the growth that will come from the funding of the equity raise will be positive for all the shareholders. According to the CapEx plan that we have and the simulation that we did, it means that we could have, on the next five years, a capital increase ranging between EUR 4 billion-EUR 4.5 billion, depending on the grants that we can have. Of course, that's the total amount of capital increase that we see possible today. We need to take into account the fact that Publi-T, the reference shareholder, will take a portion of those capital increase. Next to that, in terms of timing, we already said during the CMD today that there is no capital increase to be expected, let's say, in the short term, in 2024. We can also say that capital increase are more foreseen at the end of the period, so following the trends of the investment that we see, with strong increase at the end of the five years period. So that's what we can expect in terms of timing. Okay, that's very clear, I think. Then another question is in terms of equity-linked instruments. You have mentioned them again. They are wanting to know if you're only referring to hybrids, or if we see other instruments also, and if we would use them in the very short term. Yes, so for the time being, we have indeed a funding policy that would allow us to make use of different type of instruments, so a hybrid instrument could be one, but other type of equity-linked instrument could be another option. There are no plans to issue them on the short term. Okay, clear. Then maybe going to the U.S., a question is about what our role will be within energyRe, and what risks we see with this investment? ... Okay, so maybe, before coming to the risk, I would also like to say that the investments that have been presented by energyRe management during a video are very crucial for bringing clean energy to the city center in the US. So those investments are, from a technical point of view, a little bit complex, but they are from a social point of view, really key for delivering the targets that a number of states in the US have established in terms of green energy. And that's one of the reasons for which we decided to invest in this company rather than in other companies or other possibilities. Now, coming to a role and coming to the risks that we see, well, the role that we will play is the one of a strategic investor, knowing very well how to deliver and how to execute on those project. The project in questions, they are project we are used to, transmission project or the transmission portion of offshore project. We have been used to do that for years in Germany, in Belgium. We have EGI advising a number of companies worldwide, and that's really the expertise that we will bring, and that's really the role that we will play next to energyRe, which has competencies in terms of stakeholders management, in terms of connecting with local players. The risks that we see for those project, they are very much linked to the ones we have in the project that we are doing, and we are used to manage. There are, of course, a number of operational risks linked to a delay in execution of the project. As you know, we have adopted some years ago a very strict risk management policies for the execution of the project that we are intent to make use of as well in the context of the investments within energyRe. Second, in terms of increases in interest rates and increases in supply chain, on paper it's a risk, but like mentioned, we have of course taken this risk in account for doing our evaluation exercise. And on top of that, we expect that for the PPAs, which have still to be concluded, they will benefit from inflation-linked mechanism, and so offering some kind of protection. So at the end, taking into account the business model of the company, the one of capital recycling, the risk that we can see is a risk that the price that we expect for those investment is a price that we can't have when we start putting the assets on the market. And that's a risk that we will of course try to protect as much as we can by concluding the agreement as early as possible. But of course, after that we have proven that we are able to de-risk the project in question. Okay, very clear, Catherine. I just have a last follow-up question that I have received on the participation of Publi-T. They would like to understand until which level they would potentially follow. Yes. So that's something that Publi-T has to mention, of course, itself. Based on what we have today on the table, there is a willingness to really remain as relevant in the shareholding of the company as Publi-T is today. Thank you, Catherine. Maybe now we can switch to Yannick. Yannick, I have a few questions for you, if that's okay? Maybe the first one would be, could you clarify a little bit how we calculate our EPS guidance and what kind of financing we take into account? Okay. For our EPS, we use basically the net result per share, so it's the net profit after minority interest and after our hybrids, which we divided by the weighted average number of shares. And it's a calculation that we are applying since many years, which are also included already in the APMs that we are publishing. In terms of financing, I think Catherine mentioned already that equity will also be needed to fund our activities. If you like looked at debt, we are financing our TSOs in accordance with the regulatory gearing, which means that on average, we believe that we will need to raise around EUR 4 billion of debt on a yearly basis for both entities together. Also, like we already mentioned, we will also leverage more, the holding to fund our activities, but still within the limits of our financial policy. That being said, for 2024, it means that we will need approximately around EUR 800 million of debt that we will use to finance, on the one hand, our TSO in Germany, but also our acquisition in the U.S. Very clear, Yannick, and then maybe a final question for you. Where could you guide us where we will end the year in terms of net debt for the year, excluding EEG? That's always a very difficult question, as the EEG is, of course, not fully easy to estimate. But without EEG, the net debt that we expect at year-end will be close to EUR 9.3 billion for Elia Group. Thank you, Yannick. And now I have two questions for you, Marco. The first one would be: Could you provide some details on the regulatory interest rate outperformance in Germany for its onshore debt? ... Yeah, happy to do so. The generic rate which we currently apply is derived from two public ratios, which are published by the central bank as well. It contains on all running yields of loans and outstanding debts of German issuers and on different kind of maturities. That's one. On the other side, on different kind of ratings. So currently, this is at a 4.5% level, and this gives us confidence that we are able to be below that. That's currently the frame which we are in. The generic rate is simply multiplied 60% on a 4.5% on the entire investments which we face next year. That's what it is about. Thank you, Marco. Then in the beginning of the presentation, you said there are some elements still outstanding about the German regulation. Could you give us a bit of a view on that and what we could expect from that? Yeah, from a formal point of view, the return on equity file is not closed yet. There's a public hearing running, and we don't expect any changes compared to that what we presented today. But the formal step in final determination is outstanding, in particular for the rate, which is higher than the base rate of 4.1%. But for all new investment, it's something we expect that this will be closed and published by end of the year. And furthermore, the general productivity factor for the entire industry is outstanding as well. There, we don't see, for the time being, any indication how this calculation is gonna be made. So far, it's at 0.9% for the electricity sector, and this is running until end of year. But we don't have visibility so far how this will be further evolve. However, for our company, it is, of course, a factor which drives profitability, but to a minor degree than compared to the other elements. Great. Thank you, Marco. I just received one additional question that I think you will also be able to answer me on. In terms of our planning, when do we expect to receive some information about the grants and the grants that Catherine mentioned earlier today? Yeah, on one hand, on the project we are talking about, as namely Bornholm Energy Island, and Princess Elisabeth Island, we are already working on that one. First step has been made. Both project are on a PCI list, in Europe, being listed. That's been confirmed, and that gives us a frame, to further move on to apply for, for funds, from the EU. That's something which is very concrete and which we further want to drive. So far, the framework is limited to an extent, in terms of allowance, to use fund for works. That's something which we still need to work on, but we don't expect a decision on that one soon, to be honest on that one, as this needs to be further work on, in particular, the question, how the prioritization is being made on European level on all these projects, as there are more than 160 on the list in total, but not all of them are on that level of maturity as ours. If you want to accelerate energy transition, then I think it's reasonable that these projects, which are ahead of the curve, are getting funds soon in that regards, knowing that administration will take some time. Thank you, Marco. I think that's it for you in terms of questions. Yeah. It would be good to have Frédéric now, Stefan, and also Peter. I have some more questions for you. Let me maybe start off with Frédéric. More and more questions around affordability, and what could Elia do for this? Yes, I think it's a very relevant question, and we discussed about it already today. Affordability is key, if you want to organize the energy transition in Europe. The key levers to achieve that are, on the one hand, infrastructure development, and on the other hand, flexibility. For infrastructure development, what we do, what we plan in the Federal Development Plan will allow us to reduce, everything being equal, the commodity cost in Belgium by 10-15 EUR per megawatt hour. For flexibility, that is key that the consumption, the new consumption that will come into the network will be able to unlock its flexibility. Like that, we can avoid some cost for system management, and we can also avoid to add additional power plant to the system to ensure the adequacy of the system. To achieve that, we have, of course, to invest, and we spoke a lot of investment today. The tariff which had been approved by the Belgian regulator has, as an impact, an increase of the tariff by EUR 3-4 per month for a residential customer. Then you have to put that in perspective, the reduction of the commodity cost at one side, EUR 10-15 per MWh, and the increase of the tariffs for residential customer, for instance, EUR 3-4 per month. Thank you, Frédéric. Now, the next question is for, Stefan. So on the German grid consolidation, how do you see it evolve, and are you having any discussions with the other TSOs or with the government? ... Yeah, first of all, it's always relevant to have very strong shareholders, and 50Hertz is happy to have strong shareholders with Elia Group and KfW. And we all remember, Elia Group confirmed several times that if there is a German consolidation, it is a key topic for Elia Group to remain relevant in Germany. So nevertheless, it's relevant to look at the negotiation processes, but you shouldn't look at any kind of rumor. For us, at 50Hertz, a key priority is to fulfill expectations of the government, expectations of society, and to deliver projects in time. So having strong shareholders and delivering projects in time, that's the best and a great place to wait for a kind of consolidation in Germany, if it happens. Thank you, Stefan. Then maybe another question, you've talked a lot about offshore in the Baltic Sea and in the North Sea. Do you see any plans to have interconnectors in Eastern Europe and other interconnection projects outside? Yeah, of course. We are in close contact with our colleagues in the Czech Republic, as well as in Poland. We will see a stronger interconnector to the Czech Republic in a few years, and also in Poland, the interest in offshore wind is growing. So I reported about the LoI we have with the Baltic States and the TSOs in the Baltic States, and obviously, we will see additional interconnectors in the next Ten-Year Network Development Plans. So this is a future for the Baltic Sea, not only offshore, but also onshore with our neighbors. Very clear. Thank you, Stefan. And then I'll go for a last question for you, Peter. We, people are curious to see what is the timeline for us in finding a new CEO, and what are the qualities that we are after at Elia Group? Yes, thank you for that question. And before I start answering that, I mean, we need to understand that the plan and the strategy that we talked about today, and you- we've presented, has been developed by the executive team and the board, and has been approved by the board and the shareholders, and you can already see the results today. It's the achievements, for example, with the deal in the US, the great results on the tariff negotiations, these are all execution of that strategy that we have seen. So that was the first priority, keep that pipeline going, of executing the strategy that was set, developed, and agreed. And hence, the appointments of Catherine and Marco are also spearheads of that, to make sure we continue rolling that out. Now, the board will meet soon to develop and discuss how we replace the permanent position of the CEO, which clearly is a position that is more international than before, as we have strong CEOs in Germany and Belgium. Therefore, we think it's important that we get somebody that can develop the group further at an international level, in line with the ambitions that Bernard has explained in his video. Thank you very much, Peter. I think that brings us at the end of our Q&A session. You all know you're always more than welcome to reach out to me if, if you have any additional questions. I will be tackling them offline and in the next coming days, so don't hesitate to reach out to me. Now, I give it back to Marleen to have some closing words for our CMD. Thank you. Thank you, Stephanie. Thank you, Marco, Yannick, Stefan, Frédéric, Peter, and Michael for your contribution to today's event, and also for responding to the questions. Catherine, the floor is yours now for the closing remarks. Thank you. So, I think today we have presented a transparent outlook on the value creation drivers and funding for the upcoming five years. We are, as a team, fully dedicated to executing all strategy, since transmission plays a vital role in shaping our sustainable and affordable energy future. The emergence of a new energy economy necessitates an accelerated grid expansion to avoid potential gridlock and prevent any delays in the transition. Clearly, this is not an option. Okay. Thank you, Catherine. And with this message of trust and commitment, I would like to conclude today's event. Ladies and gentlemen, we would like to thank you for attending our second Elia Group Capital Markets Day. We hope you enjoyed it. The full recording of the event and slides will be made available on the investor relations pages of Elia Group website later today. A big, big thank you to all staff who contributed to this event, and to the entire technical team behind the scene. I wish you all a great day, and see you soon.