Good day. Thank you for standing by. Welcome to the Applus first half two021 results presentation. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Mr. Fernando Basabe. Please go ahead. Morning, all, thank you for joining the call for the first half two021 results presentation of Applus. I am Fernando Basabe, CEO. Also on the call is Joan Amigó, our CFO, Ashton West, Investor Relations. The agenda for this call is the same as on previous ones. I will run through the highlights. Joan will present the financials, I will present the business review and outlook. At the end, we will open the line to take your questions. Starting with the highlights, we've had a strong revenue, profit, and margin increase over 2020, we remain on track to reach a full recovery in revenue and profit by next year. Of the four divisions, Automotive and Labs are both in line or above the pre-pandemic levels, Energy & Industry and IDIADA are currently below, progressing well. We've pushed hard our inorganic growth strategy, and I've been really pleased at how well this has developed. I will explain in a few minutes the impact of it in detail. This year, we've closed four more acquisitions, including the last one at the beginning of this month, and the pipeline is good, and we expect to close more deals this year. This, of course, has been important in our strategic repositioning towards more sustainable revenue streams that are higher growth and margin services and end markets. We've been funding these investments with our cash flow and liquidity, and we are comfortable with our leverage, which has come down from the peak at 2020 year-end. Finally, we are revising upwards our outlook for the year, and I will detail this on the last slide. Here are the financial highlights for the first half, which, of course, against the soft comp period of half one last year, are all very strong numbers. Revenue was EUR 843 million and up almost 14%, including the acquisitions. Adjusted operating profit was EUR 80 million and up 100%, both including acquisitions and organic. The margin was 9.5% on the half one revenue, which is double last year with a Q2 margin of over 10%. Cash flow is good at Applus, and although the numbers are down compared to last year, I'm not worried about this. Joan will explain in more detail in a minute, but it is what we expected and already guided you, and of course, related to the very strong recovery. As I've said, both leverage and liquidity are perfectly healthy. Before I hand over to Joan, I would like to emphasize that I'm really encouraged by the progress we've made on both the acquisitions, which have already started to positively impact the business, and in the speed and quality of recovery in the business performance. I'm confident that we are now back to good levels of annual growth, with increasing margins that translate to high annual net profit growth with strong cash to go with it. The business was severely affected by coronavirus last year, and there are still parts of the group and regions of the world that continue to be affected. As I think we are all coming to realize, it may be with us for some time, but we are learning to live with it, and I'm confident the impact will be less and less. With that, I hand over to Joan. Thanks, Fernando, and good morning, everyone. I will start with H1 2021 revenue reach. After more than a year significantly impacted by the pandemic, revenue increased 13.7% in the semester to EUR 843 million, with an organic growth of 8.5%. The benefit from acquisitions made in the last 12 months of 9.1% and a negative currency translation of 3.9%. The second quarter of 2020 was the first full quarter period to be fully impacted by COVID-19 on the business. The organic revenue is recovering well, with the recovery commencing from the third quarter of last year with gradual quarterly improvement in organic revenue change. Until this current second quarter of 2021, where there has been a material increase on organic revenue of 27.7% due to the exceptionally soft comparable period. The negative effects impact corresponds mainly to the euro appreciation against the US dollar and also Latin American currencies. If the rates remains stable to the end of the year, then the negative currency impact should reduce substantially in the rest of the year. On the right side of the slide, we show the organic revenue change semester by semester, where you can appreciate the sequential improvement. Compared to same half year period in 2019, before the impact of COVID-19, the business continues to be behind. The shortfall of organic revenue to the first half of 2019 is 8.5%, but we are on track for organic revenue to be in line with 2019 by next year. The total adjusted operating profit increased from EUR 34.5 million to EUR 80.3 million. This was made up of an increase in organic adjusted operating profit at constant exchange rates of EUR 36.9 million, a contribution of EUR 12.5 million from the acquisitions made in the previous 12 months, less EUR 3.6 million relating to the foreign exchange translation differences. Every division had a significantly higher adjusted operating profit in the 1st half of this year compared to last year. The margin in the 1st half of last year was 4.7%, and this doubled to 9.5% in the 1st half of this year. In the second quarter of last year, the total adjusted operating profit was severely impacted by COVID-19 and was EUR 6.8 million, giving a margin of 2.1%. With the strong recovery in the business in this second quarter, the adjusted operating profit was EUR 45.2 million, giving a margin of 10.3%. Nevertheless, the margin of 9.5% is still below the margin of 11.1% we had in H1 2019. Slide number nine, we have a summary of the income statement. Below the adjusted operating profit, we have the amortization of intangibles, the PPA, by an amount of EUR 31.1 million, EUR 29.2 last year, with the increase corresponding to the amortization of the intangibles related to the recent acquisitions. We also have other results of EUR 3.4 million versus EUR 2.2 last year. That corresponds to EUR 0.9 million to transaction cost, EUR 1.5 million to restructuring, and EUR 1 million of other results. The net financial expense in the profit and loss was approximately flat at EUR 11.4 million. We expect around EUR 25 million for the whole year. The effective operational corporate tax rate has been normalized to 25% versus 60% we had in the first semester of 2020. The effective tax rate is expected to be similar at the end of the year. Non-controlling interest increased in the half year from EUR 7 million in the first half of last year to EUR 8.3 million. The increase of EUR 1.3 million is mainly due to the higher profit generated in the minority interest. We expect around EUR 18 million for the whole year. Overall, the adjusted net profit was EUR 43.3 million, and the adjusted EPS was EUR 0.30 for the first half period compared to EUR 2.1 million and EUR 0.01 in the first half of last year. Cash flow generation is good, although compared to the first half of last year, the cash flow generation was lower, mainly due to the working capital change due to change in revenue trend. Despite this working capital increase, in absolute figure, working capital right now is EUR 50 million, or 3% of our revenue, whereas at June 2020, it was EUR 72 million. Once the working capital is normalized, what we expect in H2 a certain reduction, although in Q3 could be a small increase. CapEx was EUR 18 million, EUR 12.6 million last year, which represents 2.1% of group revenue. This will be higher in the second half as our activity increases. The increase in taxes paid of EUR 16.4 million reflects the higher expected profits to be made in 2021, as well as last year benefiting from some tax refunds received and some permitted tax payment delays as part of the COVID-19 government assistance schemes. We expect around EUR 38 million tax cash out for the whole year. Interest cash outflow, EUR 5.8 million, is slightly above last year. We expect around EUR 13 million for the whole year. The cash dividends paid to minority interest was EUR 8.1 million, much higher than last year, mainly due to the cancellations of the late payments in 2020 due to COVID. We estimate around EUR 18 million for the full year. The cash outflow of EUR 60 million for acquisitions in the first half relates to the acquisitions of Inecosa and Adícora, the labs IMA Dresden, and also SAFCO. We have the balance sheet movements in cash, starting with the leases cash out by an amount of EUR 29.6 million. The increase of EUR 15.2 million in financing is the drawdown of the revolving credit facilities. Overall, our cash flow is pretty straightforward, and we expect the business to continue generating strong cash. My final slide to explain the net debt. Our total net debt at the end of H1 2021 was EUR 797 million, EUR 597 pre-IFRS 16, an increase of EUR 55 million than the position at 2020 year-end. Leverage as net debt to EBITDA is reducing despite the investment made in acquisitions due to the strong increase in the last 12 months EBITDA. At the period end, leverage was 2.7 times, as defined by the bank covenants for the syndicate debt facilities, at a lower level to the position at December 2020, when it was three times, and considerably lower than the leverage covenant. The next leverage covenant test is at December 2021, and after a period of two tests where the covenant was relaxed, it has been reset back to four times. Regarding liquidity, at the end of the quarter, we had over EUR 585 million of cash and undrawn facilities available. Just before the period end, we negotiated a further EUR 100 million private placement from one of our strategic lenders for a period of 10 and 15 years, with EUR 50 million in each maturity. This locks in very long-term debt and at very attractive rates. In conclusion, controllable leverage and a safe level of liquidity, which give us flexibility to support our growth strategy. That ends the financial slides. In the appendix, we provide further information, including a slide on the main currency rates. Now, let me hand you back over to Fernando Basabe. Thank you, Joan. Now I have three slides to explain in a bit more detail our acquisition strategy, so you can see the impact of this before I go to present the results of the four divisions. This timeline shows the nine acquisitions we've made over the last 18 months. The line is the cumulative annual revenue we add with these acquisitions. These all fit perfectly into our existing business lines and add either geographies or services or extend the end markets. Before the pandemic, we made two small acquisitions, Iteuve Canarias and ZYX MEtrology, that between them accounted for EUR 5 million revenue. There was a pause during Q2, and once we had better visibility of our business, leverage, and cash flow, we continued the deals that we had temporarily stopped, closing first Reliable Analysis, which is mostly electromagnetic compatibility testing for electrical products and especially electrical vehicles in China and the U.S. We closed Besikta, which is auto inspections in Sweden, which is a high-quality business with reliable recurring cash flows in a business we know very well. QPS, which is certification of electrical products and, in a sense, vertical integration for the labs division. SAFCO helps us to accelerate our rollout of construction services in the Middle East and diversifies the end markets of the Energy & Industry division. Inecosa in Spain, bought from Iberdrola, strengthens our position with this important client and brings new skills in power. IMA Dresden in Germany is a structural and materials testing laboratory, which gives us a very significant presence in the key German market. Finally, Enertis increases our renewables presence by 50% in the solar photovoltaic market, where we had a smaller presence, as well as energy storage, which is new for us. In total, the nine acquisitions add EUR 190 million of additional annual revenue and growing strongly. In this slide, you can see a summary of the financials of these nine acquisitions. We have spent EUR 305 million for annual revenue of EUR 190 million at an average adjusted operating profit margin of 14%. The return on capital employed on these acquisitions, calculated for the first year, is 8.7%, which we think is good, as the first year is always low, and over the next few years, this goes to double-digit levels. If we base the contribution of these acquisitions on our 2019 financials, these add 11% of revenue to Applus, our margin accretive by 30 basis points and increase our EPS by 13%. Of course, based on 2020 or 2021 financials, all of these are considerably higher. The biggest impact, as you can see, has been on the Laboratories division, which has increased its size by 75%, and this is driving the portfolio evolution of the group into higher growth and higher margin businesses. For the third slide on the success of this inorganic growth strategy, we show you here how the portfolio has already evolved into a much more resilient one that has a better mix of end markets than we had in 2019, and one that has better growth and higher margins. On the right side, we show the half one revenue pro forma of the acquisitions. Labs has increased from being 6% of the group to 9%, of course, as it has higher than group margins, it is more in profit. My target a few years ago was to make Labs 10% of the group revenue, we are nearly there. We like this business as it is high growth and margin, and we do it well with stronger recognition from our customers. Power is now 11% of the group on a pro forma basis, with more than one-third of this being renewables. We will continue to focus on growing this area as the market is so strong here. Statutory vehicle inspection is now the biggest end market at 27% of the group revenue. This is a highly resilient and recurring revenue, profit, and cash stream. The main decrease in group exposure is for oil and gas, both the CapEx and the OpEx, which have decreased from being 34% in total two years ago to 25%. Of this, the CapEx part has almost halved and is now 5% of the group in revenue. In profit terms, this is less than 3%. Going through the four divisions now and starting with Energy & Industry, we had a strong Q2 recovery with organic revenue growth of 13%, but this is, of course, against the soft comp period, which in Q2 of last year, the division declined by 25%. At the half-year point, this division is only 2% below last year on an organic basis. As you can see on the right-hand side, it is around 13% below the revenue of half one 2019. The virus is still with us and is affecting this division more than the others. The activity is recovering, and we expect this to continue in the second half. Inorganic revenue is only 1.1%, as two of these three acquisitions in this division came right at the end of the half one period. Power was 18% of the division at half one, of which renewables on a pro forma basis after adding in Enertis is over one-third of this and is growing very well. Oil and gas OpEx had good recovery in the second quarter, the half-year position is still below last year. Oil and gas CapEx continues declining. The Mediterranean and Latin America once performed the best, this is largely due to the higher exposure to power and construction. The focus on this division, apart from the revenue recovery, is on the margin, which is improving. We expect by next year to be above pre-pandemic levels. As I have discussed already, the evolution of the portfolio is the priority, with the three acquisitions already completed this year is going very well. The Auto division, of course, exceptionally strong recovery in the second quarter this year compared to last year, with 80% organic revenue growth, bringing the half-year growth to 42%. From the right-hand side, it leaves the division 3.6% above 2019 on an organic basis. The revenue in the first half of EUR 235 million will be less in half two due to the change in seasonality, with half one benefiting from delayed inspections from 2020 and the change in timing of the other inspection schedule in many countries. We expect the half two revenue to be around 205 million, and hence the full year to be around EUR 440 million. Margins are strong, around 20%, and we expect this to be sustained to the end of the year. They are higher than half 1 last year that was affected by coronavirus, but will be weaker in half two compared to last year due to the lower revenue from the seasonality change I just mentioned. We also have the diluting impact from the acquisition of Besikta. Technology has helped this division to make it more efficient. We continue to have incremental costs due to a less efficient inspection process, with more staff necessary to cover absences due to coronavirus infections. The contribution from the acquisition of Besikta in Sweden has been significant, with good cost and revenue synergies now coming through. Down below, we detail the currency impact on the division, which comes from the U.S. and Latin America businesses. It was high in the first half, but if rates stay where they are, it should reduce significantly in the second half. One of our contracts in the U.S., we did not achieve the renewal on. It is in the state of Connecticut for revenue of around EUR 6 million per year. We bid to renew it, but we lost on price, and it went to a competitor. This contract ends in September this year. We need another small new contract. We won another small new contract in Mexico that follows on from the first three we have recently won there. IDIADA division, strong Q2 revenue growth of 34%, being 7.7% for the first half, but still leaves this division behind half one 2019. By next year, we expect it to have caught up with 2019 revenue. The proving ground is in a good trend and was running at 65% capacity in the second quarter. As we've been seeing and saying recently, this division is at the forefront of the transition from combustion engines to electric and hybrid, as well as benefiting from the increased development taking place on automating cars and improving safety systems and the driving experience. Alongside the change in vehicle technology, we are investing to be at the front of this, and that includes a new proprietary 5G network we've already built and installed at the IDIADA ground, and we showcase this at the recent Mobile World Congress that was held in Barcelona. In regards to the tender of the new concession, after the recent changes in the Catalan government, we expect now the tender to be launched next year. There is no change in our strong position to win the tender and retain the contract. The Laboratories division, a strong organic revenue growth in Q2, taking the half one growth to almost 10%. Now we are in line with pre-COVID levels with every month improving. The electrical and electronic segment is now the biggest at around 39% of the division revenue, and this has come from strong growth in our businesses here, as well as 2 of the recent acquisitions in that area. We are currently seeing this growth temporarily affected in Europe due to the shortage of microchips, although the Asian business continues to be strong regardless of this. Our aerospace business is currently suffering due to the impact of the pandemic to our customers, although we believe our business will recover well in a few months. We've already gone through the acquisitions, which for this division has been the most significant. IMA Dresden, with EUR 25 million annual revenue, was only just closed towards the end of the period, so this will add substantially to the second half revenue growth. Margins are at the highest we've ever seen for the Laboratories division. We targeted mid-single digit margins a few years ago back, and we are there and expect this further to improve. Now for my final slide on the summary and outlook. We had strong performance in the second quarter and first half, and we are on track for a full recovery by next year, with the Auto and Laboratories divisions already in line or above pre-COVID-19 levels, and Energy & Industry and IDIADA making good progress. The margin has also recovered strongly as a result of this revenue recovery, as well as focusing on costs, pricing, and mix. I think I've said it a few times already, we've had a very successful period for making acquisitions, and these are improving the mix to higher growth and margin businesses. Also, I would like to point out that we continue to make good progress in all ESG matters, including a new strong rating from Gaïa, and you have more information about this on the appendix. We have revised up our outlook for the year from double-digit revenue growth to mid-teens. This upgrade comes from both better organic revenue growth than originally expected and the additional acquisitions that we've already made. We continue to expect the margin to end the year at close to 10%. Cash flow, liquidity, and leverage are all in good shape, and we expect to continue making more acquisitions. Finally, I'd like to mention we are working on a three-year strategic plan, which we expect to present to the market in late Q4 or at the beginning of next year. With that, I'll now hand over to the operator, which will open the floor for questions. Thank you. Your first question comes from the line of Pablo Cuadrado from Kepler Cheuvreux. Please go ahead. Your line is now open. Hello. Good morning, everyone. A few questions from my side. The first one I was wondering if you can provide the exit rate of the organic revenue growth at the end of June, particularly looking more to the business areas into IDIADA or Energy & Industry, which are the areas that when we compare to 2019, they are still well below Q1. Provide to know the exit rate and where we are on that front. On the IDIADA update, well, you have mentioned that the tender is delayed, I would like to clarify if you are expecting also the clarification or the outcome of the tender next year. Do you think that's also going to be delayed, let's say, from 2022 to 2023? Lastly, I will welcome if you can comment a little bit on the pipeline. As you mentioned, the M&A, despite being very active and very successful in doing these deals so far this year, your body language suggests that you still have opportunities and more things on your pocket. Now that you have done this, probably increasing exposure on the renewables front with the acquisition of the solar PV, you are focusing in all the different type of areas or do you still think that there are more potential deals to be happening on the renewable space? I would love to have some idea or clarification there. Thank you, Pablo. I'll start with IDIADA M&A, and then I'll ask Joan to answer the exit rate on revenue. On IDIADA, as you know, there were elections in Catalonia some months ago. The government changed about one or two months ago already, and there were some changes in the different departments from the political parties of the coalition. We have met them recently now that they are in place. What we've been told is that they expect to have to launch the tender next year, probably in Q1 or Q2. As for the decision, I think it will be more at the end of next year or even in the first half of 2023. That's what we are expecting now. On M&A, the focus continues to be the same. It's on the Laboratories division, where we think there's still a lot of room to continue making acquisitions in different geographies. Always, I would say, within the business lines or technologies or that we are already serving, we don't intend to go into new things. In Energy & Industry, you mentioned renewables. Yes, there is still room to acquire more in renewables, I think a lot more. Also construction is quite interesting for us. I would say generally, everything outside oil and gas, also all the telecoms within that division. In vehicle inspection, in our Automotive division, where we acquired some years ago, Inversiones Finisterre, with very profitable contracts in Galicia and in Costa Rica. We acquired Besikta last year, a leader in Sweden. We are always looking also in the Automotive division for acquisitions. Those are the three areas. They haven't changed. There is a lot of room to continue, and we have quite a good pipeline. Pablo, regarding the exit rates, remember that last year, obviously all the quarter was significantly impacted by COVID. In the case of Energy & Industry, the organic growth that we have had in June is quite similar to the quarters, around 12%. Similarly in IDIADA. The growth that we have had in IDIADA in June has been around 28%, whereas in the quarter, a little bit more than 30%. In the case of Labs, more or less growth at 18% in June. In the case of Auto, lower, around 11%. Remember that mainly the second half of March, April, and May is where the stations were closed last year. It means in June, we restarted some of the stations, and this is the reason why the growth in Auto in June is a little bit lower. You said also that we are still behind 2019, mainly in the case of Energy & Industry and IDIADA. Is what Fernando said, in the case of IDIADA, the proving ground, due to the mobility restrictions, is still impacted. Right now we are working at 65% of utilization, whereas in 2019 we were at full. In the case of Energy & Industry, COVID is still impacting. There are some regions like Middle East, et cetera, that they are a little bit below a part of the situation of the oil and gas. I think that's it. Yeah, our next question comes from the line of Kate Somerville from UBS. Please go ahead. Your line is now open. Great. Thank you. Just a couple of questions from me, please. It seems as if CapEx work is still in decline. I was just wondering what you think it would take to exit this business, especially given the renewable work in ENI is performing so well. Secondly, just on the guidance, obviously a pickup in the top line. I am just wondering why there isn't a pickup in the margin as well. Thanks very much. Well, in the case of CapEx, right now, is around 2% over the total revenue at group level. What we expect is a significant increase in the second semester, following a little bit the revenue trend. What we expect most likely is to be above 3%, 3.5% for the total group. It's true that it's a little bit lower, obviously, in the oil and gas, but also is offset by the rest of the end market. What we expect is for the whole group, more or less as an average, around close to 3.5% of revenue or more or less EUR 60 million. Okay. Your questions on the guidance. What we have upgraded is the revenue, and the margin should remain similar. On absolute terms, it will be, of course, higher. The reason for not increasing also the margin is that the growth rate from growth is mainly coming from Energy & Industry and IDIADA, which have lower margin than the vehicle inspection business. We still maintain that close to 10% margin as the guidance. Hopefully, we will do more, but our current guidelines is that one. Great. Thank you very much. Hi, Kate, it's Ashton here. Was your first question relating to oil and gas CapEx or CapEx? Yeah spending? Could you just repeat the first question on oil and gas CapEx? You're saying it's in decline. Yeah. I was just wondering, would there be a point that you need to exit it given the strength of the rest of your ENI business? Okay. Will we exit oil and gas CapEx business? No, we won't exit it. What we are seeing in the market is that there's very few new projects, especially new construction pipelines, which used to be one of our strongest businesses in the U.S., and the very few ones that come to the market, the prices are very competitive, and we are not really interested in investing and trying to win projects to make a very low margin. We are not exiting it. Some regions of the world, we still compete. It's not a priority, and I don't see a recovery there. Now, as I mentioned, it's 5% of revenue and still declining. In terms of profit, it's 2%-3%. It will continue with us, but don't expect that to improve. Perfect. Very clear. Thank you. Yeah. Next question comes from the line of Gonzalo de Cueto from Exane BNP Paribas. Please go ahead. Your line is now open. Hi. Good morning. Thank you for taking my questions. I have just two questions. The first one is on Energy & Industry organic growth. Could you give us an idea of the organic performance by region of each of the end market activities of this division, and also what should we expect for the second part of the year? On your Automotive division, and regarding upcoming contract renewals, do you have any update on the contract in Costa Rica? You said in the last conference call that you didn't know if this one was going to attend or that you can also might get the extension this year. Okay. Thank you, Gonzalo. On Energy & Industry, just by regions, Latin America is growing, and is growing versus 2019 also. The same for Mediterranean. I would say, and I mentioned those are outperforming regions. Northern Europe, which for main countries we operate there are Germany, the Netherlands, and the U.K., are recovering well, but still below 2019. The ones that are suffering more are Middle East, where there are very difficult to get visas, which we need for the expats to operate, and also a lot of mobility restrictions. Asia Pacific is now the other area where I would say we are still behind. North America is suffering here more because it's where our oil and gas exposure is higher, especially in the U.S. Canada is doing better. I would say that's more or less the overall picture. It's good in Europe, it's good in Latin America, soft in Middle East, Asia Pacific and the U.S. In Canada, I would say it's fine. On your second question, on the Auto contract in Costa Rica. This contract ends in July 2022. What we expect is to get some extension because we think there is no time for the government to make a new tender. I think by probably first half of next year, this should be confirmed. As you know, there are elections in Costa Rica, I think it's in February next year. Probably we won't have the extension or the decision signed until there is a new government in place. Very helpful. Thank you. Your next question comes from the line of Paul Sullivan from Barclays. Please go ahead. Your line is now open. Yeah. Good morning, everyone. Just one from me. Looks like second quarter in Energy & Industry deteriorated compared to Q1 on a sort of a two-year view versus 2019. Could you provide a bit more color there? Actually, as a bit of a follow-up, what's your visibility on the sustainability of the recovery in the non-oil and gas businesses going through the second half of the year? Thank you. Thank you, Paul. I think you're comparing Q1. I'm not sure I understood your question on the quarters on Energy & Industry. Can you please say it again? I think I might be wrong, but it looks like Q2 was weaker than Q1 versus compared to 2019. Did the growth rate slow sequentially versus 2019? Well, to be honest, I'm not looking so detail at the quarters, especially these times where seasonality is so complicated. I think the overall picture in Energy & Industry, the coronavirus impacted us later than in the rest of the divisions, because in Q1 last year, we didn't have much impact. In Q2 last year, we start having a negative impact on Energy & Industry, but it was higher in Q3 and Q4. Since then it is recovering. I don't think it's going any worse in Q2 than in Q1, maybe comparing to 2019. That's not the overall feeling we have and what we are seeing in the market. We expect the second half to continue improving and next year. Whether next year we will be able to reach the volume of the 2019 organically, I don't know yet. We don't have that visibility because on top of the pandemic, the oil and gas is suffering, and I don't think that will go to 2019 levels. I don't know if that's clear or? Yeah. No, that's helpful. Some contract momentum in Energy & Industry outside of oil and gas? Well, power is going extremely well. The growth is very nice. Construction is going well. The other smaller end markets. The only one out of oil and gas where we are suffering is aerospace, where we cover it in the labs, but also in the Energy & Industry division, we have a presence in the U.S. We think that will recover. It's not the same situation as oil and gas. I think the strongest is power and with this acquisition of Enertis that we've done, and I hope we'll be able to do some more in this space. I think this will grow very nicely in the coming years, both organically and by acquisitions. Great. Thank you. Yeah. Next question comes from the line of Álvaro Lenze from Alantra Equities. Please go ahead. Your line is now open. Hi. Thanks for taking my questions. First, on the Auto business, I wanted to know what has happened with the Connecticut contract that has not been renewed, whether the contract has just, there is no longer a program or whether you have lost a tender or you decided not to renew it. Also whether the new contract in Mexico is large enough to offset for this or not. Second question would be also on Auto, maybe on Spain, how do you see the potential change in ownership at Itevelesa, whether this could imply higher, lower, or the same competition that you've seen in the past with Itevelesa. Lastly, on Ireland, how is the country recovering and whether we've seen all of the impact from the new changes in the terms after the renewal or whether we should see any further impacts going forward. Thanks. Thank you, Álvaro. Starting with the contract in Connecticut, the contract has not disappeared. It came to an end. It was retendered, and we lost on price to our main competitor there. Some of these contracts in the U.S., you compete on technical aspects and in price. In others, only on technical. This one, the price was the most important element. Well, there was a competitor who gave a better price, and we lost it. It is EUR 6 million revenue per year. I think I mentioned it ends in the month of September this year. The one we won in Mexico is much smaller. In Mexico, we won 3 last year, and this is a 4th one, all of them in the state of Jalisco, which is implementing an emission testing program. We will have to invest in CapEx and start from scratch. These four areas together, once they are fully operating, will give us a revenue between EUR 3 million, EUR 4 million per year. More important than the amount of these contracts is that in Mexico, if we see more states starting to implementing this type of emission testing programs, this is not the only one, but probably the first one that has attracted international companies to do it. I think the programs will be quite well run. If others follow, well, we have this experience and this reference, I think Mexico in a few years can become a quite important market for us. On your second question, Italvialesa, which is today in the newspapers, apparently they are close to finalizing the deal. It won't change much for us. The acquisition is not going to be made according to the press by a competitor, but by an infrastructure fund. Management will continue. We will continue competing with them. As you know, Italvialesa in Spain has around, I think it's EUR 70 million revenue in vehicle inspection. We have around EUR 150. We compete them in Madrid, in the Canary Islands, and in some other small region. Their largest operation by far is in Castilla y León, and ours are in Catalonia and Galicia, where they are not present in Galicia, and they have a very small presence in Catalonia. We don't compete that much with them, and I don't think the situation will change given how the operations are in Spain and how the concessions are run by both companies. On your third question on Ireland, we are, I think it's now the second year on the new contract. Of course, the pandemic has changed a lot what we were expecting. Last year, there was a huge impact. What I can say is revenue is back, so in terms of revenue, we are operating at normal levels now. In terms of margins, they are now in line with what we were expecting in our business plan when we tendered for the renewal. Those margins are lower than the margins we had in the last years of the previous 10-year contract, which is, I would say, normal and happens in many of these contracts. What we expect is that these margins will now improve over the life of the contract. The CapEx, which was not that high for this new 10-year contract, is now being invested with some delay of one, two years. Overall, revenue is back, margins are where they should be, and we think this contract will be another big success for the company. Perfect. Thank you very much. There are no further questions in the queue. As a reminder, please press star and one for any final questions. Okay. Thank you very much all for attending the call, and have a good day. Bye. Thank you. Good morning. This concludes today's conference call. Thank you for participating. You may all disconnect.