Ladies and gentlemen, welcome to NH Hotel Group first half 2022 results presentation. I now hand over the call to the speakers. Gentlemen, please go ahead. Thank you. Hello, and good morning, everyone. Welcome to NH Hotel Group second quarter and first half 2022 results conference call. This is Javier Vega-Penichet from Investor Relations. To start, our CEO, Ramón Aragonés, will share with you the drivers behind the outstanding performance in the second quarter, mainly pricing strategy and cost control, and also the prospects in the short term. Then our CFO, Luis Martínez, will provide a more detailed description of the results and will dive in in the healthy cash flow generation and the implied leverage reduction that continues strengthening our financial position. At the end, we will open the Q&A session to answer any questions you may have. Now I hand over the call to Ramón. Good morning, and thank you for joining us today. This is Ramón Aragonés speaking. We are extremely delighted to present these outstanding results being the best Q2 in NH history. As commented in the previous results call, we were very confident in the recovery of the industry based on the performance achieved in the second half of the last year once restrictions were lifted. It is fair to say that the speed of the recovery has surpassed all expectation and, for instance, June revenue figure above EUR 190 million has set a new monthly record high surpassing the EUR 175 million of October 2019. The group took advantage of the accelerated reactivation of both leisure and business travelers. This was the one behind the significant upturn in the key European cities where NH has a leading position. Our successful pricing strategy focused on a strong intra-month demand and segment optimization has allowed us to surpass 2019 comparable ADR by +7% in this second quarter. This ADR focus has permitted to increase ADR from EUR 116 in April to EUR 128 in May, and finally, EUR 239 in June. The robust ADR growth is largely due to the reactivation of the business demand during weekdays, and explains the healthy flow through rates achieved this quarter, despite the increasing pressure in cost. With regard to occupancy, upward trend allowed to grow from 63% in April to 70% in May, and 72% in June. Compared to 2019, like-for-like occupancy is 7 points below, partially explained by the low contribution of the long distance international traveler and large size congresses and events. Let me add that we are already seeing a good pace of demand coming in September and October for these types of events. On the cost side, our discipline and initiative of our purchasing platform to mitigate the increasing pressure has allowed to overall offset 50% of the inflation. This pressure is higher in externalized services as housekeeping and laundry. In energy costs, we are benefiting from terms agreed last year, well below current levels. For H2, sorry, we expect cost impact to become more severe, reducing the level of conversion achieved during the first six months. The financial position of NH has continued to improve with a leverage reduction of EUR 105 million in the first six months, and a very strong liquid position above EUR 600 million. Let me now recap the main operating highlights for the first half of the year. Revenues in the second quarter reached EUR 509 million compared to 2019 revenues grew by +40 million or +8.5%. The operating improvement since March explains that 69% of the 742 revenue figure of the first six months derive from Q2. Occupancy reached 68.6% in Q2, with higher activity in Southern Europe due to the earlier lifting of restrictions. Spain reached 78%, Italy 74%, and levels below 70% in Benelux and Central Europe, but recovering fast despite a later lifting of restrictions. ADR grew from EUR 90 in the first quarter to EUR 128 in Q2, averaging EUR 114 in the first six months. At the EBITDA level and excluding IFRS 16, cost control allowed to report in Q2 EUR 114 million due to a very healthy conversion rate of 42%. We are also showing an improvement of EUR 4 million or +3.7% versus Q2 2019, despite having more leased rooms in the period. In the six-month period, we jumped from -EUR 54 million in Q2 to EUR 59 million in the first half. All-in net recurring income in the second quarter reached EUR 64 million compared to EUR 53 million in the second quarter of 2019. In the first half, this line continues in negative at -EUR 60 million, explained by the weaker start of the year with Omicron, when we report a net loss of EUR 80 million. To conclude my intervention and before turning the call to Luis Martínez, let me share with you that the summer period is performing also above expectations. The good pace of business demand bookings for September and October, the return of larger congresses and events and long-distance international travelers could offset any potential a slowdown of leisure demand. All in all, we continue to foresee a robust operating trend next autumn. Finally, I want to remark the effort and perseverance of NH employees who have made this possible. Now, Luis give you more details on the results and balance sheet. Thank you, Ramón. This is Luis Martínez speaking. Good morning, everyone. Jumping into the details of the P&L on page four, reported revenue in Q2 2022 reached EUR 509 million, implying a growth of EUR 355 million compared to EUR 154 million in the second quarter of 2021, that was impacted by mobility restrictions. As commented by Ramón, compared to 2019, revenues grew by EUR 40 million or 8.5%. Moving to RevPAR on page five, let me highlight that compared to 2019, a similar RevPAR was achieved in May, and in June, it was surpassed by 5% due to the remarkable like-for-like ADR performance. Total RevPAR in Q2 was EUR 88 and only -3% compared to like-for-like Q2 2019 due to lower capacity. Moving to page six, we have seen a strong recovery in all regions during the second quarter with a significant upturn in key cities due to the return of business demand, especially since the start of the second quarter. In Spain, like-for-like and room revenue grew EUR 89 million with higher contribution from Madrid and secondary cities. Barcelona recovered fast since March. Spain has reached in Q2 higher like-for-like revenues compared to 2019. In Italy, like-for-like and renovation revenue increased by EUR 66 million with a strong growth in Milan, Rome, and secondary cities. Total revenue positively affected by changes of perimeter, mainly Boscolo portfolio more than offsetting the closing of three hotels. Also, Italy reached in Q2 higher like-for-like revenues compared to 2019. In Benelux, like-for-like and our reforms and renovation revenue was up EUR 81 million with a relevant recovery Amsterdam and Brussels. Those secondary cities were above 2019 numbers. In Central Europe, growth of EUR 33 million in like-for-like despite the EUR 39 million of direct state aid subsidies in Q2 2021. Berlin, Düsseldorf, and Hamburg were above 2019. Lastly, in LatAm, we saw revenue growth across all countries. Argentina, EUR 9 million; Colombia and Chile, EUR 6 million; and Mexico, EUR 4 million. Moving to page seven, payroll in the second quarter of the year increased by 136% or EUR 87 million, and operating expenses grew by 159% or EUR 87 million, implying a 51% GOP conversion rate despite inflationary pressure. Reported lease payments and property taxes increased minus EUR 35 million in Q2, mainly explained by the fixed rent concessions achieved in the second quarter of 2021, EUR 16 million, higher variable rent, and step up from recent openings. Reported EBITDA with IFRS 16 improved by EUR 146 million, reaching positive EUR 177 million in the second quarter of the year. Excluding IFRS 16, recorded EBITDA grew by EUR 150 million, reaching + EUR 114 million due to a healthy 42% conversion rate supported by the ADR strategy and cost control. Reported net recurring income in the second quarter improved by EUR 115 million, reaching a + EUR 64 million compared to -EUR 51 million in the second quarter of 2021, and EUR 53 million in the second quarter of 2019. Non-recurring items reached -EUR 3 million, mainly explained by a provision for an agreement related to a claim in the Netherlands, partially offset by the net capital gain of two asset rotation transactions. All in, reported total net income improved by EUR 83 million, reaching EUR 62 million compared to -EUR 21 million in the second quarter of 2021, and EUR 55 million in the second quarter of 2019. Moving to cash flow evolution on page eight, I would like to highlight that the business recovery has allowed to reach positive free cash flow since March and to reduce net financial debt by EUR 136 million in Q2, also supported by nineteen million euros from asset rotation to a small non-core assets, and limited CapEx investments. As a result, net financial debt decreased to EUR 463 million compared to EUR 568 million in December 2021, implying a decline of EUR 105 million in the first six months. The positive working capital contribution is explained by certain subsidies registered in Q4 2021 and collected in early 2022, which more than offset the working capital investment related to the business improvement and the return of the B2B segment credit sales, especially since May. The positive VAT contribution is related to the timing effect from higher VAT charged than VAT paid and some local taxes, both due to revenue increase. CapEx reached EUR 80 million in the first half of the year, and we expect that it will gradually increase during the coming quarters. Moving to slide nine. The group ended in June with an available liquidity of EUR 618 million, out of which EUR 351 million is cash, and two hundred and sixty-seven million euros are available credit lines. Debt refinancing achieved last year with a covenant holiday for the whole 2022 displays a relaxed debt maturity profile. As a consequence of this, Fitch Ratings upgraded in May NH's rating from B- to B with a stable outlook, and Moody's improved the outlook in July from negative to stable, reflecting ongoing business recovery and better credit metrics. Now, after covering the results of the year, the team will be very happy to answer any questions you may have. Thank you. Ladies and gentlemen, if you wish to ask a question by phone, please press zero one on your telephone keypad. Once again, ladies and gentlemen, if you wish to ask a question by phone, please press zero one on your telephone keypad to enter the queue for the question-and-answer session. We have the first question from [Jeff Lotti from Arcana]. Please go ahead. Oh, hi there. Is this me? Can you hear me? Yes. Oh, great. Two questions. Firstly, in terms of the outlook, you said the business traveler is coming back. You're seeing strong bookings for September and October. But you kind of hinted that maybe the leisure travel bookings were looking a bit soft or you thought they might be a bit soft. I just wonder if you could give a bit more detail on that. Secondly, in terms of leverage and ratings, moving forward, what are the targets for the business? Obviously, now that the EBITDA is coming back, you're deleveraging pretty quickly, but what are your long-term targets? Okay. Well, listen, July is going extremely well, more or less in line with what happened in May and June, and we expect the same for August. Also our expectation for September in terms of the business traveler are extremely positive. Regarding leisure travelers, let me highlight the fact that, for example, we are having 35% more American travelers that we had in 2019 the last three months. All in, I would say that all the segments are having a full recovery, and we are extremely optimistic for the coming months. For the second question, Luis will answer you. Okay. On the second question, you know, we have shown a strong commitment on reduction of debt, on deleveraging. This is something that we already started last year with the repayment of the RCF. Capital generation is, as we have explained, very strong, and we expect it to remain very strong in the coming months. As of today, I can only say that, by the end of the year, probably if all the business dynamics remain as we are seeing it today and nothing changes, we could be in the region of 2x or even lower than 2x net financial debt to EBITDA, excluding leases. Okay. Of course, this is a very healthy leverage ratio. It doesn't mean that we will stop there. Well, the dynamics of capital generation of NH, as we have shown in the previous years, for example, till 2019, will take us naturally to more deleveraging. Of course, we will need to increase CapEx in the coming years. There will be opportunities for growth, and these are discussions that we will have to take in due time. As of today, I can only say that we are committed to this, to reducing debt, that we have shown that we honor that commitment and that we are approaching very healthy leverage ratios. Okay, great. Just on that leverage, you know, roughly 2x by the end of the year. Is that the senior secured debt or does that include the ICO loan as well? That includes all financing. It includes the bonds, includes the RCF that is fully undrawn now, of course, so it's undrawn, but it's available, fully available. It includes all secured and unsecured loans. The only thing we are not including is the leases, financial leases, but it includes all financial debt. Great. Okay. Thanks very much. Thank you. We have another question from Tom Tharayil from Neuberger Berman. Please go ahead. Hi. Good morning. Just reading back into what you've said, your expectations of EBITDA, I mean, just back calculating, in which case that'll be about EUR 250 million-EUR 260 million or maybe more. I'm just sorry, when we met at the Deutsche Conference, I believe the target was to be 2.9x by the end of the year. It reads like within less than 1 month, your expectations for year-end leverage are now 2x. It's looking better than imagined. Is that a fair characterization? Hi, Tom, this is very tricky. Well, this 2.9x is, let's say our budget ratio. It was our original budget ratio. Let's say it was the official leverage target for the year. The positive and very, very strong evolution of the business in the, I would say, in most of June. May was already a very strong month. We made 5.4 by mid-June, early June. June has been a historical record of revenues, of cash flow. I have to say that the cash generation in May was a historical record, the highest operating cash flow ever better than the previous record, which was May 2019. May 2022 has beat that record. June has been higher than May, so June, two months in a row, of historical records. The cash generation is very strong, explained by a high component of B2C that is producing a very high conversion of revenues into collections. Having said this, we are seeing these dynamics remaining, staying here. We see a strong month of September. We also see a strong month of July. Based on this, of course, we are assuming a forecast of EBITDA, which is quite above the original budget. Altogether, the lower the debt, and of course the strong cash flow generation is making us think that we should be approaching this leverage ratio 2x. Of course, always with the caveat that the business dynamics that we see today don't change, okay? Yes, we can say that though, that two times is something that for the moment, based on our estimate, we think is achievable without any unexpected events. Regarding the end of the year, obviously we don't want to launch a guidance right now. We don't need to do it, but honestly, we expect a fantastic result this year. Absolutely better than expected at the beginning of the year. Evolution of the business is again being extremely well, especially driven by pricing and ADR optimization. We are gonna keep consistent with the same strategy for the rest of the year, so we expect a high level of conversion. Altogether, I think we'll finish with very, very good numbers this year. Sorry, because I don't want to launch a guidance because every month is getting better than previous one, so it doesn't make sense to anticipate a number right now. Yeah. No, that's fair. Thank you. That's. I guess you're confirming it's better than when we met a few days ago. At that kind of guidance, and I don't have the numbers in front of me, but your Moody's rating is B3. I would imagine you would get an uplift in those, in the corporate family rating and consequently the bond as well. I mean, I'd hate to put you on the spot, but is that the right thinking? At maybe 2.75x-2.80x EBITDA, gross leverage comes down significantly and leads to an uplift in Moody's. Of course, I cannot speak on what rating agencies could do or not. We are having very healthy, constant conversations with the rating agencies. Yeah. We know that rating agencies focus on IFRS 16 leverage. They have been very clear on the thresholds for upgrade. You can read in the notes the press release we issued. Of course, I can only say that if we reach this internal forecast that we have that make us think that 2x with our leases is a reasonable leverage ratio by the end of the year, this would imply being below the threshold that Moody's has stated for an upgrade. Yeah. We think the first step has taken place, the establishment of outlook. Now next step is to continue having this dialogue with them. Yeah. Probably based on year-end results, the numbers will be met, and Moody's, as well as any other rating agency, every rating agency that covers this, should take it into consideration. Okay. Got it. Just my last question would be around any loss or cancellations, any booking cancellations due to the airlines, due to the backlog of travel in Europe. I believe a lot of the flight cancellations are pan-European, and the lack of cargo staff. Last minute, are you seeing a lot of your bookings going away? Are you seeing a lot of any percentage of tourists or business visitors that were meant to come but finally could not make it and had to cancel? Is that something you record? Well, listen, it's not being material because the demand is so high that we can cover this kind of cancellation. On the other hand, we are having layoffs in our airport hotels. Honestly, right now, this is not being a problem. Yeah. We have very well located hotels very well located. We are travelers coming by. I'm not saying it's a problem. It's your numbers are very strong. I'm trying to find out. No, no. I mean. Honestly, no. The quantity is 2%, 1%, 3%, 5%. Listen, I don't have the numbers, so you can imagine that we are not very worried about it. Oh, okay. All right. This is not being a problem for us right now, honestly. Got it. Yeah. Thank you. Thank you very much. Perfect. Congratulations on your results. Thank you. We have another question from João Safara from Banco Santander. Please go ahead. Yes. Hi. Good morning. I have two questions. The first is, well, looking into 2023, and just trying to understand what your, I mean, I guess more a feeling at this point than any kind of visibility, but in terms of how you see the following drivers playing out. You had, and you continue to have pricing power for this year. Demand is very strong. It's likely that demand will soften somewhere next year. At the same time, you would probably have higher pressure, even higher than this year, in terms of cost inflation, just because, well, I believe wages haven't really reflected the higher inflation. How do you expect these drivers to play out next year in terms of still maintaining prices, or do you still see another potential for further price increases, considering that you will have to somewhat pass through higher wage inflation? If you could give me a bit of your, let's say, feeling about this, it would be very helpful. Then the other question just regarding cash flow generation. A little bit more into detail to understand better. It was a very strong free cash flow generation this quarter in particular, I mean, in the first half in general. I mean, there are some drivers I would like to understand. First would be the taxes that are being paid. From what I've seen, you haven't really had any outflow from taxes in this first half of the year. If you could a bit give us an idea what's the guidance there, what you expect this to be going forward. Are there any tax benefits that you're using to explain the difference versus what you see in the P&L, which is roughly minus EUR 50 million? Then also on the CapEx. When you reactivate CapEx, what is the expected CapEx for a normal year? Has anything changed with the crisis or should we go back to the previous level? Okay. Thank you, João. Regarding your first question, there are several things that we have to take into account. Starting by revenues, for the moment, to be totally honest with you, we are not seeing any symptom of a slowdown. It's too soon to come to any conclusion because the visibility is not the same that we used to have before COVID. Now, many things has changed. There are many people booking very, very last minute. Even in MICE segment, it's quite curious because we have a lot of MICE reservation just in some hours before the meeting. We need more time to see if all the strength consolidating or that means a change of behavior in the demand. Right now, we are not extremely concerned about the demand for the future. Let's see what happens in the coming years. It depends. It's true there are some factors. Ukraine and recession can be seen as clear risks, but the actual operating dynamics still appears as relatively solid. Listen, let me highlight the fact that this company has already done all the necessary measures to reduce our structural costs. We are better prepared than before the pandemic to face any hypothetical crisis. For sure, we are gonna have some very strong challenges next year, especially with energy costs. There's a question mark about it, but for sure this is gonna be an increase in energy costs. Also, payroll is gonna be a problem because obviously inflation doesn't help in this matter. All in, I think the company is ready to face the situation, and we can compensate this increasing of costs with our ADR strategy. We don't see any reason to change this strategy. We are ready to sacrifice frequency for keeping with the same level of ADR, if possible. There are some segments that the big events first, meetings and events that they are recovering. As I mentioned before, Americans are coming back, and we expect a huge recovery of American travelers next year. Something which is quite relevant for us because, as you know, we belong to an international company with a strong presence in Asia. We expect a huge recovery of China as a feeder market. We expect a lot of Chinese travelers coming to Europe next year. That is gonna be important for us. We expect to have 5% of our total clientele coming from China. For sure there will be negative things next year, but there is also positive things that they can balance the situation. For the moment, we remain with the same position that we still have so far. We are optimistic, but nobody knows what's gonna happen with the economy in the coming months. Yes. Regarding high level, this is good. Regarding taxes, your question on taxes, and the dynamics of cash flow. Well, first I would like to say that, our operating cash flow is extremely organic. As of today, we of course have a volume of payments to suppliers, which is absolutely in line with pre-COVID numbers, with 2019 numbers. VAT is something that cannot be of course managed. You collect with VAT, but at the same time you have to pay that VAT that you collect or net it with the VAT that you pay when you pay your, when you suffer your costs. When you pay your costs, including rents, by the way, as you are in Spain, you have to pay VAT on rents. I would say we have quite a normalized operating cash flow, setting aside corporate income tax. In Spanish, impuestos sobre el beneficio. Okay. Focusing on purely operating taxes is absolutely normalized. We are not benefiting very residual, no more than EUR 1 million and EUR 2 million of credit tax credits in countries like for example, Italy for some local taxes. But I'm not talking about very relevant amounts, so very normalized operating taxes structure. Focusing on corporate income tax, of course, the expectation of cash in corporate income tax for this year is still low. We come from two years of significant losses. And of course, we have generated tax credits that now we have the legitimate right to use to offset tax payments. You have that, you know that there are limitations on the use of those tax credits. This is not unlimited. It is difficult as of today to make a projection, a detailed and accurate projection of taxes because it will also depend on the split of business between different countries. Probably by next year, we'll be because of the expectation we have to generate profit approaching corporate income tax cash of levels of 2019. Bear in mind that in 2019 there were some extraordinary asset disposals. Probably you shouldn't take the 2019 number. This is not a game changer. What I want to say is that this strong cash flow generation is not new. NH has generated very strong cash flows in the past. You just have to look at the 2019, 2018 numbers, and you see that the working capital in NH is neutral or slightly positive, and in some cases quite positive, depending on the season of the year. Nothing to be worried about the sustainability of this cash flow as long as the business remains as strong as it is today. There are no deferrals. I mean, natural things. Of course, there are deferrals. There have been programs in some countries like the Netherlands, by which we have been granted the possibility to defer certain taxes, but nothing material, nothing that is gonna pop up a very big amount of taxes. That's on cash flow. I don't recall. CapEx remains very limited. Of course, the total amount of CapEx for this year, and we have been very clear on this, is very small. It's probably in the region of EUR 50 million-EUR 55 million. That was our original expectation for cash CapEx. Can be EUR 60 million, can be EUR 55 million. Today, we are still of course working on the project. The project have a life, you know, and timing that moves, no? You shouldn't expect a huge amount of CapEx for this year. Of course, for next year, 2023, an absolutely normalized year, probably a pre-COVID, absolutely pre-COVID on a like for like and even better, you know, as we are seeing today, year. We will go back gradually to the organic CapEx, which as a standard invested around 4% of revenues. We also have to add to that some IC CapEx, some opportunistic CapEx. There are opportunities to renovate some hotels with a very clear business case. I cannot say a figure, but I mean, we don't expect a CapEx like we had in 2019. We will start to approach sustainable but profitable levels of CapEx because we have proven in the past, we have proved that we know how to manage CapEx. We know how to select the hotels in which we invest CapEx. This is. There's a track record on this, so nothing to worry about NH going crazy and investing in things that make no sense. Of course, we are forced. We need to reinvest in the portfolio to make sure that the portfolio remains in a healthy state. Thank you very much. Very clear. Thank you. Our next question comes from André Juillard from Deutsche Bank. Please go ahead. Yes, good morning, gentlemen. Congratulations for the strong results. Most of my questions have already been answered, but I had 2 additional ones. First one is about distribution. Do you see any significant evolution on the distribution side, direct, OTAs on the, and so on? If you could give us some more color about that would be helpful. Second one is about development. Do you see any strong trend with independent OTAs coming to you for acquisitions or affiliation or this kind of thing? What about potential M&A? Thank you. Hello, André. Thank you for your question. Regarding distribution, we don't expect a lot of change. Let me highlight the fact that now we are part of Discovery GHA, the new loyalty program, that we belong to this program. We have a lot of expectation because there is more than 22 million members. For sure, this is gonna help to increase our direct sales. This is one of our main goals for the coming years, reduce the dependency from hoteliers and having more direct sales. We are not obsessed with that. Our main objective is increasing sales, no matter where the sales are coming, but we'll be more than happy if we can have more loyalty clients through this Discovery program. Regarding development, we want to grow, of course, and we are analyzing a lot of transactions right now. After COVID, most of our landlords are institutional investors. They have had the possibility to compare how we have managed the COVID versus our competitors. Now all of them, they want to do more things with us. They trust us. They want to sign HMA contract with us. We are analyzing some possibilities of growing in the leisure segment that we have a strong presence in Portugal, as you know, but we want to grow in this segment. We perceive a great opportunity for the company to increase our portfolio in leisure, and we are totally open to cooperate with all kind of investors, hotel owners that they want to be part of our group. Let me highlight that we are interested in growing, but within a certain condition. There is no sense in having more hotels in places we have already a huge presence. On the other hand, we would like to complete our portfolio in most of the European capitals and in South America. We are gonna grow also in the territories managed by Minor International with our brands. We are now opening a new hotel in Dubai. We open in Abu Dhabi. We will open a hotel in Australia. Also, we are involved in some projects in China. At the same time, we are in charge of developing the Minor brands in Europe. We are now signing a new Anantara in Portugal, and we expect to sign more Anantara hotels. We perceive a great opportunity in the luxury segments to Anantara to grow in Europe. Regarding M&A, for the moment, we are not analyzing any transaction. Okay. Thank you. Thank you. We have another question coming from [Laura Vanzi from MSM Accessory]. Please go ahead. Thanks so much for taking my question. Most of them have actually been answered. Just regarding the ICO loan, you previously mentioned that you don't see this as a sort of permanent part of your capital structure. I think we're even planning on repaying part of it this year already. Could you just maybe update on what your plans are regarding this loan and potential repayment of it? Hi, Laura. Yes, of course, these COVID related loans were raised in a context of COVID. The idea of companies, and in our particular case, of course, is as long as we are recovering or generating cash, the idea is to go for a gradual repayment. This loan has a bullet maturity in 2026, so there is no specific requirement for a specific amount, and there is no demand by the banks or by the ICO for a specific amount a year. We are working on that. We are working on different scenarios, and probably in the coming months or in the coming weeks, actually, we may start with some gradual repayment. As of today, I cannot commit on the amounts or any date. Okay. That's fair. Thanks for the update anyway. Congratulations on the great results. Next question comes from Miguel Medina from [Alantra]. Please go ahead. Two very short questions. The first one is, did this Dutch claim that you have mentioned in the non-recurrent results basically offset the capital gains on the asset rotation. A, what was the nature of this claim? And B, whether this is settled completely or there is a possibility of, you know, more additional impacts. The second question is, that was a long time ago, before COVID, but you were considering the possibility of doing a strategic update in light of the new ownership, et cetera. Are you considering doing, like, a capital markets presentation maybe at the end of this year or early next year, or that's basically history now? Thank you. Thank you again. On this Dutch claim is a public statement that we have included in all our financial disclosures. This is a claim in connection with the sale of a hotel in Amsterdam in 2013. There is, you know, a different position between the company and the tax authorities regarding the extendibility of the real estate tax. After a long process and after analyzing all the options and the different scenarios, we have decided to settle with the tax authorities for the amount that we have disclosed, which is basically 50% of the original claim. It doesn't mean that the company is accepting, let's say, that we were not right. It's simply that in these situations sometimes it's better to settle and mitigate the risk. Because at the end there is always a risk when you are in these long processes. As of today, we're in the process of documenting this agreement with the tax authorities. Once this process, this claim is settled, which we expect to happen in the coming weeks or in the coming days actually, the process will be closed. We don't depart the provision for this because the tax claim will be closed. We are not considering to have a presentation to market in the coming months. We are working in a plan, of course, but you know, there is a lot of uncertainty about the future, so it's quite complicated to work in a real plan right now. We prefer to wait and see what happen in the coming months, what's gonna be the evolution of the economy. Later on, of course, we will be ready to present the plan to the market if needed. Now we are extremely focused on this year. We perceive a great opportunity this year for the company. We want to reach as much net income positive as possible. This is our, let's say, our current focus right now. Understood. Thank you very much. We have another question from Peter Kawada from Hi. I just have two questions. You know, obviously there's excess liquidity on the balance sheet, with liquidity, you know, above EUR 600 million, of which EUR 350 million is in cash. You've already alluded to, you know, what you may do with that cash going forward, with the partial repayment of the ICO loan and, you know, additional CapEx. You know, do you have a target cash level in mind going forward? I'm just trying to get a sense of, you know, what a more normalized cash balance would look like. My second question is related to, can you just remind me what% of your cost base is related to payroll and energy? Thank you. Hi, Peter. I cannot give an answer to the, let's say, stabilized cash balance. Of course, in times like the one we have gone through, cash was an asset. Cash remains an asset. Liquidity as a whole remains an asset. We give a lot of value to liquidity, but at the same time, we need to also use that liquidity for optimal usage. We think that repaying debt, which is something that we have done in the past, we have already done in these new times. You know, last year we repaid the RCF, and we will probably continue doing so very soon, is the best use. Of course, ensuring the minimum amount of cash for operations or a reasonable and well-sized liquidity for operations, for investments, and for unexpected situations. As of today, I cannot tell you what is that amount. We are working on different scenarios and we will see. It will depend also on how the coming quarters look. But you will see us repaying debt as we have done in the past using that cash flow. Regarding the second question, Ramón will comment. Yes. It's changing every month, but I would say that it's about 4% of our total revenues. Comparing with our total revenues as 6% of our total costs, I would say. It's right now. For sure next year it's gonna be higher. It's too soon to know for sure what is gonna be the figure in the coming year. Because as you know, we have presence in a lot of countries and the situation is not exactly the same in all the countries. We expect some helps in some countries. Could give you more detail by the end of the year. Was that for both energy and payroll, the 6% of total costs? No. This is only energy. Thank you. Ladies and gentlemen, one last reminder. If you wish to ask a question by phone, please press zero one on your phone keypad. It seems that we have no further questions. Okay. Thanks a lot for joining us today. Any further question, please join call investor relations teams and have a great summer vacation to all of you. Bye. Thank you. Thank you. Ladies and gentlemen, this concludes the conference call. Thank you all for participating. You may now disconnect.