Good afternoon, everyone, and welcome to the Results Presentation for the Second Quarter 2024 at CIE Automotive. Today, we have Jesús María Herrera, CEO, and Lorea Aristizabal Abasolo, Director of Corporate Development. At the end, there will be a Q&A, and remember, questions can only be asked in writing via the tool provided in the webcast. Now I'll hand over to Lorea. Go ahead, please. Hello, good afternoon, everyone, and welcome back to the conference call on the results for the second quarter. We can start, if you agree, by reviewing the market situation. In this second quarter, global production has shrunk by half a point compared to the second quarter of 2023, with a clear dispersion between markets, with the Mexican and Asian markets that show a strong growth versus markets like the European or the Brazilian markets that have fallen. Let's look at the details. Starting with Europe and the CEE market, with the worst performance in the second quarter, with a contraction of 6% that takes the quarter to 4%. It seems to be confirmed that the stagnated demand has already been covered and that inventories are at normal levels, which does not favor production. The most relevant news in Europe during this second quarter has been the provisional imposition of new import duties, additional to the existing 10%, to imports of Chinese electric vehicles. Since July fourth, electric imported cars have an additional duty of between 17% and 38%, according to the OEM involved. This duty is temporary until November, when the EU will have to decide whether to make it definitive or not. The imposition of these duties would speed up the productive implementation of the Chinese OEMs in Europe, in the midterm, as we've seen some of them announce. But in the short term, the penetration rate of electric vehicles in European sales will, probably, feel, the effects even more strongly. And even before these duties, during this first, half year, we've already seen a slowdown in electrification. According to ACEA data, the penetration of electric vehicles, both in the first and second quarters, has been 19%, compared to 22%, for the year 2023, or 25%, in the fourth quarter of 2023. Another potential effect of these, import duties is that of possible reprisals by the Chinese government. Something will have to be monitored, and it is, expected to have, a special impact on German manufacturers. Regarding the future for production in Europe, in the short term, we expect to continue to see contractions in the European market since the comparison base for last year is very demanding, and specifically for the second half of the year, IHS estimates a contraction of 6% versus 4% in this first half. Therefore, 2024 overall would close at -5%. We continue with Brazil, with a drop of 2% in the quarter, and this has also represented -2% in the first half. A drop that has been contextualized, among others, by these three factors: First of all, the poor performance of exports, which have fallen because the destination markets are importing Chinese cars. In the first six months of the year, 165,300 cars were shipped by the country, a drop of 28%, compared to the same period last year. It's the worst export situation since 2009, excluding, of course, the pandemic in 2020. Another reason why production has fallen is that Brazil is also importing Chinese cars. In the first half of the year, Brazil registered almost 200,000 vehicles, imported models, 38% more than in the same period last year. Imports, where the Chinese vehicles represented 78%, almost five times more than what they represented in the first half of 2023. The third factor, the floods in the south of the country during the month of May, a month during which production fell 30% compared to the previous year. For the second half of the year, it is expected that there will be an improvement compared to the first half, after getting over the dip caused by the floods, and in the midterm, due to more and more loans for vehicle buying. Therefore, it's estimated that there will be a growth of 6% in the second half, what would leave the annual growth at a figure of 2%. In North America, there is a dispersion in our markets in this second quarter, with Mexico growing 10%, 5% in the first half, and United States growing only 1% in the quarter, 2% in the half year. On the one hand, there's a very different, a very positive performance in the Mexican market, and the month of April, for example, has been the best April in the last 7 years in terms of vehicle sales. On the other hand, the U.S. market is still resilient. The slight increase in this market during the second quarter is important for a market that is already mature... and a market that has been penalized by the hacking that in June affected over 15,000 dealers, and which has caused a disruption in sales of vehicles amounting to some 100,000 units in the second quarter. This has had an impact on the inventories, which have risen from 48 days in March up to 55 days in June, just 13% below normalized levels. For the rest of the year, growth is expected both in Mexico and the United States, with Mexico growing by 3% in the second half and closing the year at 4%, and the United States growing 1% in the second half and closing the year at 2%. The Indian passenger vehicle market has again grown significantly during the second quarter, 4% compared to the second quarter in 2023, with a month of May, which has been a record in vehicle sales. After this first half strong growth, 7%, the second half of the year is expected to show very similar volumes to the first half, a very positive figure. Although in terms of growth, the second half will show a growth of 1% because of the more demanding comparison base, and this would mean closing the year with +4%. But, as you know, when we talk about India, it's also important to talk about other segments apart from the passenger vehicle, which we are also exposed to and which have had a very positive development in this second quarter. Two-wheelers, motorbikes, 19.6% growth. Tractors, +1%. Trucks, +12.5%. Moving on to our other Asian market, China, where production in the second quarter has also grown significantly, 4% compared to the previous year, leaving the first half at +5%. The main reasons for this strong growth can be found in the favorable development of exports, which have grown around 30%. The new incentive plans implemented during the months of April and May, that include more affordable loans to purchase vehicles and a scrapping program. As we've been seeing, the Chinese market continues to have an intense price war, with the first half of the year, where it's estimated that prices have been reduced by 20% on average compared to last year. In the electrification area, the first half confirms the dynamism in the demand for electric vehicles, with wholesale sales that have reached 4.6 million units in the first half, which implies a growth of 31% year-on-year, and a penetration of more than 45%, 12 points more than last year. We must also say that at the closing of June 2024, the market share of Chinese local brands amounts to 57% and has increased by 7 points compared to 2023. Looking at the future of this market, we see that the IHS estimate is for a 4% shrinkage during the second half of the year. And behind this hypothesis is a demanding comparison base, together with the hypothesis of a possible slowdown in exports as a consequence of the import duties implemented in Europe. Bearing in mind this -4% in the second half, the year would close practically flat, in line with 2023. Adding all this together, and to close the chapter on the markets, the global market has dropped by 0.5% in the second quarter, which has brought it to a drop of 0.2% in the first half, and it is expected to shrink by 3.6% in the second half. This would represent -2% year-on-year. Moving on to the CIE results, starting with sales, which, at a constant exchange rate, reflect a growth of 2.5% in the second quarter, and therefore 3.1% in the first half. This implies an outperformance of 3 points in the second quarter, and a half-year outperformance of 3.3 points. In view of the historical development of sales, and especially in the post-pandemic context, we're talking about a structural, recurrent outperformance, and, which, is extended to all geographies except for China. Not only sales have grown significantly, so have the rest of the lines in our P&L. We've seen how the, quarterly EBITDA has reached 18.6% EBITDA margin over sales, which represents an improvement, both, compared to the margin for the second quarter of 2023, and a sequential improvement compared to the margin for the first quarter of 2024. We're talking about EUR 190 million in EBITDA, with a growth of more than 3%, and an EBIT of EUR 142 million, with a growth of almost 5%. The figures in CIE, in themselves are, of course, important, but even more so is their consistency, their solidity. Some headlines. Practically all geographies expand the operating margins in the second quarter, both compared to 2023, as well as in a sequential comparison. All geographies are in EBITDA margin range of approximately 18%-20%, without a significant dispersion, and the same goes for EBIT. We see a very well-balanced geographic distribution in sales. We've seen a gradual dilution of Europe in favor of America and Asia. A share in sales, which is reflected in a very similar regional geographic EBITDA. Other headlines for the quarter, India exceeding 8% EBITDA margin. China will never focus on profitability or a Europe that is resilient in a very complicated environment. With all this, half year in which the increase in sales has meant an EBIT conversion of 35%, proof of the improvement in our operating profitability. We also highlight the 3% growth in net income in a demanding interest rate environment, reaching EUR 184 million in the first half. A growth which, on a like-for-like basis, bearing in mind that in the first quarter of 2023, the profits of our German Forges was included, would represent almost 10%. Regarding cash flow, during this second quarter, we have continued with high levels of operating cash, with an EBITDA conversion rate of 66%, exceeding once again EUR 120 million in quarterly generation. For the half year, having generated almost EUR 250 million in operating cash, implies a further grow in flow of more than 5% compared to the same period last year. An operating cash flow, which continues to grow, which is recurrent and which is in line with our strategic commitment up to 2025. Other elements to be highlighted in the cash flow in the second quarter, stability of the working capital and the factoring used, an investment in maintenance in line with previous quarters, and investment in growth that is slightly higher, due basically to the construction of new capacity, payout of dividends and operations with treasury stock. And during this second quarter, there has been no dividend payout at the parent company, payouts that take place in January and July. But, the dividend has been paid out to minority shareholders, amounting to around EUR 14 million, mainly in India and one of our Chinese subsidiaries. With all this included, almost two-thirds of the cash flow that has been generated in the first half has been dedicated to remunerating the shareholders. After remunerating the shareholders, we continue to deleverage the company with the debt ratio in June 2024 at 1.45 times net financial debt over EBITDA, a level below our usual comfort zone of 2x, which shows our capability to generate and to invest in corporate operations in line with the strategic plan. We're coming close to the end of the conference call, talking about the future and repeating our message from the first quarter. In view of the degree of compliance with our strategic objectives at the closing of 2023, the good results obtained in the first half of 2024, and the good prospects for the coming quarters, we reconfirm our commitments for 2025. Now we will open the Q&A, where today we're lucky enough to have our CEO with us, Jesús María Herrera. Thank you all very much for your attention. We'll start with a first question related to our performance. We're asked, "What are the drivers for the outperformance in this second quarter? Whether it's a pure gain in market share." Hello, good afternoon. I'm Jesús María Herrera. I think it's a trend that we've been seeing for some time in our performance, because in all the geographic areas where we're present, except for China, as mentioned earlier, the outperformance is truly significant. It's something that comes from before, and it's going to continue to be this way in the coming quarters. So, let's say that it's a usual thing. You know, that this sector that's consolidated around a few players. Let's say, the strongest players, technologically and financially, and CIE is one of them, one of the most important ones. And that's why, naturally, CIE has an increase in market share in the various geographic areas we're present in. And specifically about China, continuing with this question: How long do you think the underperformance can last in this market? And about the margins, how sustainable are the margins reached in this first half of 2024? Well, the underperformance, as said many times, is just the result of the growth in Chinese local customers. It's a growth in local Chinese customers that is based on Chinese suppliers, with costs that we're not interested in, costs that are not profitable. We've explained the developments, the growth of our Chinese customers, but we don't know what the trend is going to continue to be. But it's true that we don't work in that niche. You know, that turnover is important for us, but profitability is even more important. And you've seen how in China, with a drop in sales, we have been able to improve our margins, applying what we apply in all geographic areas, the CIE management model and culture. And we showed this during the COVID year. During the COVID year, we were at home for quite a long time, and we were one of the few companies that had significant profits. If I remember properly, over EUR 180 million in net profit. In other words, a volume that was dropping significantly, but we are quick enough to be able to adjust to those volumes, and obtain very significant profitabilities. I would highlight, apart from China, what was also mentioned earlier, the improvement of margins in all geographic areas we're in. That's why we managed to obtain practically the same profitability in all of them, between that 18%-20% that was mentioned, which is what gives us a wonderful consolidated result of 18.5% in EBITDA and 14% EBIT, which is unique in the whole sector. But again, exclusively because there are no other groups that can be as successful as we are in any part of the world. All our competitors have geographic areas where they suffer. The CIE model is proving that it's successful everywhere where we operate. A question on what we think the effect of the import duties will be on Chinese electric vehicles in Europe. Will this affect OEM production in the short term, or whether we expect the local presence of Chinese OEMs in Europe? Well, we have to say that nobody likes duties. We all trust in a free market, but a free market under the same conditions. The social and labor conditions in some parts of the world are not the same as in others, and we don't agree with playing about with that. So, they obviously have more favorable market conditions, and that's why import duties are set. But bearing in mind the history and what happened with Japan, for example, in the end, there'll be an agreement. There's always a lot of noise at the beginning, and then there's an agreement, a quota share, and we'll continue to work normally, obviously, with more Chinese customers producing in Europe, in this case, without a doubt. But those Chinese customers are going to need the suppliers that operate in Europe, because the Chinese have already shown, and I mean the Chinese as competitors of ours, that they do a very good job in China, but outside China, they find it very hard to be efficient. So if the Chinese OEMs are set up in Europe, they're going to have to come to us as suppliers for them. So the snapshot wouldn't change too much thinking in the midterm. And to supplement this, just a footnote. We shouldn't think that the only people that import cars from China to Europe are Chinese OEMs. 25%, practically, of what was imported last year was SAIC, especially with their MG brand, but the next one was Tesla, with practically 20% of the imports into Europe made by Tesla. The second European brand, Renault with Dacia. There's BMW. And we have to remember that not all the importers are Chinese OEMs. Maybe, as Jesús may say, we'll see the implementation of Chinese OEMs or European or Western OEMs that decide to increase their production in the future. We've seen an increase in CapEx. Now, we changed subjects completely. We've seen a growth in the CapEx, so 6.6% in sales over the guidance. Is it necessary to obtain the outperformance you're achieving? Are you going to review the guidance 2025 because you think there'll be a deviation versus the guidance? What are your comments on this deviation in CapEx? Well, as usual, as CIE, CIE is going to meet all its guidance in 2025, at least, or perhaps a little bit sooner. Having said this, what's important is the great commercial success we're having, and especially if we focus on Mexico to produce parts in the north of Mexico with the U.S. as the destination. We've had months of extreme success. We've started with very strong investments in technology that, in the midterm, are going to give us a sales level that is much higher than considered before. In any case, from a quantitative point of view, in the strategic plan, we spoke about 5% over sales each year, and this was the case in 2021, in 2022. In 2023, it was over 5% because of the general inflation. And the fact that in 2024 there's going to be 1% extra, as we're seeing. This means we're talking about EUR 1.4 billion. We're talking about peanuts in the overall strategic plan, and this is in answer to the question as to whether we're going to revise. Let's work out the numbers. It's pure peanuts. We move on to a question on the P&L. Other European suppliers keep talking about high labor costs in their quarterly results, and this has an impact on the results. What is CIE seeing in the various markets from the labor point of view? Well, without a doubt, not just in the European market, but in the various markets, the American market has been an example recently, and the increase in labor costs; this is a reality we face, and we can only be more and more efficient. If you analyze CIE, we've had a growth in recent years that's been significant, both in sales and margins, and we work with the same people. At CIE, even the fixed cost is no longer fixed. We're working and growing with a smaller headcount, and that's the only way of making our margins grow and continue to consolidate better results each day and each year. Continuing with the P&L, a couple of questions on net income. I'll start with the first one. If financial expenses due to interest in this first half can it be extrapolated to the end of the year, and also what we can expect from the tax point of view in the second half? Financial expenses this year are going to be very similar in the second half to the first half, and we expect a drop in the next year, so this will help us to increase our net income. Regarding taxes, it's obvious that we have a very high profit level, which means that taxes continue to grow. That's why 65% EBITDA conversion rate into operating cash has more merit than what we initially expected when we dropped the strategic plan. We spoke about the enormous increase in interest rates that have blown up financial expenses. This is part of the 65% calculation, and net profits are very high, so this has an effect on taxes. But even so, we're achieving one of our main goals in our guidance for 2025. And another question on net income: Is there any concrete explanation with respect to the drop in minority shareholders this quarter? If you're comparing it with the first half of 2023, I think there were EUR 12 million in the first half, another EUR 12 million in the second half. But you have to remember that this included German Forges, which in the first half had a number of positive one-offs. Like the insurance because of the floods or the energy subsidy in Germany, all this was included in the first half, and since German Forgings were under the umbrella CIE India, that we have a somewhat higher minority result in the second half of 2023. If we look at the first half and second half, we're practically at EUR 10 million per quarter, so there's nothing special. Yes, that's the case. The EUR 13 million that the sale of MCIE represented in the first half. And that 30-some% no longer exists this year, and that's why we have to give a lot more merit to the increase in net profit at our company without having that result from the sale of MCIE. Now, there's a question, since we're seeing growth in EBITDA in a complicated market, since it's estimated that the market will improve next year, will there be a greater growth in EBITDA? What do you think about the Bloomberg consensus? Well, we've analyzed the Bloomberg consensus, and that's more or less where we're going to be. I think that you're lucky enough to make fairly approximate estimates because of the confidence in CIE that year on year provides better results, profits and sales. We think it's reasonable, and we think that this is the path that we need to take in the coming quarters and the coming years. Now, we open up a section on M&A. The first question is: How's the market? Why is it taking so long to carry out any operations? And alternative to the lack of M&As, if that's the case. Well, answering the second part of the question, alternatives to not having M&A projects or not closing M&A projects. Well, that's the explanation for the drastic revolution in net financial debt over a bit, which this year we've closed at historic levels in our 30 years. In other words, we've never had such a low leverage rate at our company. And, that's because we happen to materialize M&A operations. So, the answer is very simple. Apart from the fact that there are companies in major difficulty, buying companies means much higher multiples than the multiples of listed companies. If you integrate a company that has a higher multiples than the CIE multiples, that's a lot in value from time zero, and this has changed significantly. Historically, we've always paid 80%, more or less, of the multiples that we had as a listed company. That's changed today from 80% to 130%. Any non-listed company asks for multiples that we believe we can't pay for. And as I've said at various meetings we've had, the best operation for us is to continue to buy CIEs. I'm not saying we're going to do it, but it's the cheapest operation, and with the most guaranteed profitability, because we have 100% CIE behind it. But I think that these are the main aspects involved. Regarding the format of a possible scrip dividend, it was asked at the shareholders meeting, has it been discussed on the board? Is there anything new? Yes, we've discussed it, and we've left it for the end of the year to make a decision. It has been discussed, the reflection has been made, and after summer, in October or in December, we'll make a decision. And coming back to M&A, more specifically with regard to India, since CIE India has a good cash balance, why haven't we carried out M&A in India recently? Well, it's practically where we've analyzed more cases. You know that India, the multiples are also very, very, very high, and we're working on various options. And the option that seems the most reasonable to us is the exchange of paper between various companies, because again, the payments in cash for these multiples is painful, to use the term. But it's our country, it's our country for the medium and long term, and we're all focused on the growth of that great country, where we're very well structured, and when we have a wonderful team with great capability to growth. And you see how it's listed. It's almost catching up on CIE. It's a small part of CIE, but its multiples are 3 or 4x higher than CIE, sir. So it's a market gap evaluation is close to EUR 2.3-EUR 2.4 billion, very close to CIE globally. And related to corporate development, it's for the case of CIE India, have we considered other automotive segments, industrial, aerospace, et cetera? So we do what we do best. We've already showed our success in our two pillars, what we call Tier 2, the process pillar for technology all over the world, and the other pillar is the product and the comfort pillar, and we feel very comfortable growing in these two businesses. Another change in subject, what's the policy of the Brazil government with regard to the strong increase in Chinese car imports? Are there plans to also implement duties? You know that our dear Brazilian President Lula is a close friend of the Chinese, and having a clear idea of what's going to happen in Brazil is very difficult. You know that there are Chinese like BYD that are operating at the Ford facilities, and it's true that they're carrying out a lot of financial and tax measures, and that's why there's a little bit of fear about the country, and thus the devaluation on September thirtieth we closed the Real EUR at 5.95. And if you've looked at the flow, we've had EUR 16 million in negative exchange differences because of the country risk, let's say, in quotation marks, and the devaluation of the real. But, as I say, there will be a turbulence, but, in the midterm, everything comes back to normal, and it will continue to be, for us, what it is today, what it has been in the last 20 years, a marvelous country and a country where we know how to manage. We have a great team, and, we continue to gain a very significant market share, and we have the best EBIT margin, so there within CIE. And we're also asked on a corporate level, why the Roof Systems division isn't part of CIE India? It could be an important source to create value in view of the multiples in India. Well, this happened before, and nobody ever asked about it. Dominion was inside CIE, if you remember, and Dominion is present in India. I don't know why they never asked why Dominion India wasn't part of CIE India. And now, we're asked about the comfort products. Like Dominion, it's a completely different business. We've always agreed that in India and in the rest of the world, where we have partners for all the process technologies we have. And the roof business is a product business that's completely different. It's more centralized in Germany with regards to technology and commercial, and it has its own path towards the future. And that's why it isn't part of CIE India, and neither is it under the other countries and continents. But separate from the other technologies. A question from a different angle. CIE is having to renegotiate additional costs, related to, delays in electric, vehicles. Well, CIE obviously negotiates everything. We negotiate absolutely everything. It's true that in certain projects, there are very, specific investments, volumes, committed, by the customers that are being met, and there's a delay, and obviously, we're asking for compensation. We always do it. It's nothing new. This was the last question. Well, very good. It's been a real pleasure. I think that the important thing about CIE is what Lorea said at the beginning. We continue to increase market share, we continue to increase margins. I think that it's very difficult to find companies that, this year, with all the turbulence on the market, with the increase in financial expenses, that are capable of continuing to improve their profits and continue to increase the dividends for the shareholders, which is the main goal, let's say, in our management process. So, it's been a pleasure, and I wish you all happy holidays. Very well deserved for everybody at CIE, and I imagine for everybody else as well. So my best regards, and all the best to all of you. Thank you all very much. We continue to be at your disposal if you have any