Welcome to OHLA's conference call. The management of the company will run you through the presentation, which will be followed by a question-and-answer session. You can ask a question by pressing zero one on your telephone keypad, or send your questions through the webcast platform. I will now hand over the call to the OHLA management team. Thank you. Good morning, ladies and gentlemen. My name is Tomás Ruiz, and I am the Chief Corporate Officer of OHLA Group. Together with me in the room are Mr. José María Sagardoy, CFO, and Mr. Pedro Arellano, Head of Investor Relations. I especially thank you for your attendance and interest in the performance of OHLA over the first half of the year. We hope that all of you and your families are well, given the social situation in which we currently find ourselves. Before going to the operational results of this quarter by division in detail, I would like to share some key points regarding the group's performance during this past semester. Let me advance to you that these set of results are satisfactory and in line with the forecast. At operational level, all our total sales amounted to EUR 1.5 billion, 10.7% higher than in the same period of the previous year. EBITDA stands at EUR 40.7 million, 34% above this indicator in the same period of the previous year, with a margin in the construction unit of 4.1%, consolidating the group's upward trend since 2018, and exceeding the 3.5% margin made in the fourth semester of last year. EBIT amounted to EUR 27.1 million, which compares very favorably with the figure of EUR 2.9 million of June 2021. It is important to mention that OHLA ended the first six months of 2022 with a negative attributable net profit of EUR 60.7 million, mainly impacted by the accounting effect of the value adjustment of the Canalejas investment derived from the social and macroeconomic situation, and particularly by the delay in the opening of the commercial gallery due to the COVID-19 pandemic. Apart from the good performance at operational level in sales, EBITDA, and EBIT, especially important is the order intake achieved in this period, which has a direct link with the group's future productions as they are converted into sales. In the first semester of the year, the order intake amounted to EUR 2.4 billion, which is at 32% above the same period in 2021, and represents a book-to-bill ratio of 1.7. One of the main pillars of the group's strategy is to progressively strengthening its concession business. In the first semester, OHLA has been awarded, together with Termotécnica Coindustrial in a 50% joint venture, the concession in Bogotá, Colombia of the Acceso Norte dos project, which not only strengthens the group's concession business, but also contributes with EUR 240 million to the construction division's order book. In this respect, I am very glad to share with you, in case that you haven't read it in the local press, that yesterday, OHLA was confirmed as preferred bidder of the concession project Instituto Nacional del Cáncer in Chile. This is a project close to EUR 300 million total investment, which we plan to include in our order book at the end of this year. This institute is part of the second concession hospital program tendered by the Chilean government, of which we have already been awarded in 2021, the Biobío network. These two projects make a cluster of hospital concessions, strengthening OHLA's leadership position, given our extensive experience in the construction of hospitals. Thanks to this new concession, OHLA fulfills the guidance announced to the market by obtaining two large concessions during the year 2022, being both within the size ranges already shared with the market. Furthermore, it is also worth emphasizing the cash flow management, which is a high priority for us. OHLA ended up with a total liquidity position of EUR 620 million. That is EUR 179.5 million over its financial gross debt. It should also be recalled that reducing the indebtedness, the leverage of the company, is still a high priority for OHLA. For this reason, during this period, we have canceled the ICO Facility, which principal outstanding amounted to EUR 54.5 million, and carried out a partial tender offer of the outstanding notes for EUR 43.1 million, reducing the principal nominal amount to EUR 444.2 million. Our commitment to continue deleveraging the company is among our priorities. These three components, i.e., satisfactory business performance, the backlog evolution, and the deleverage of the company, in line with the continued improvement of our liquidity management, permits OHLA to be in a stronger position to soften any potential downturn period. Let's go now to the main operational results of the first half of the year in detail, providing more explanations on the performance of the different divisions of the group. I will start with the construction business. Sales of the construction division total EUR 1.2 billion, 16.5% higher than in June 2021, favored by the increase in order intake. Sales in construction division represents 83.2% of the total sales of the group. Out of which less than 20% are made in Spain. Construction EBITDA reached EUR 49.8 million, or 4.1% margin over sales, reflecting greater profitability than that obtained in the same period of 2021, which was 3.5% of sales. This improvement is explained by better margins in the new awards obtained. However, it is important to highlight that in the current worldwide macroeconomic scenario, particularly due to the supply chain disruptions and high inflation, we are carrying out a detailed analysis by geography, project, and type of client to study and monitor any potential impact over the group's margins and any measure to compensate such impact. Construction order book totaled EUR 6.1 billion as of June 2022. That is a 26.5% increase when compared to the end of last year. Today's order book represents 30.3 months of sales versus 25.8 months of sales in last December. Out of the total construction order intake, roughly half of it corresponds to North America, 1/3 to Europe, and the remaining 20% to Latin America. Related to the industrial and services divisions. The industrial division has registered sales of EUR 44.5 billion below the previous year. We must point out that OHLA has decided to reorganize our industrial division, abandoning the activity of engineering, procurement, and construction, the EPC projects, and concentrating our efforts on renewable projects. Our services division sales amounted to EUR 189.4 million, representing a 13% increase over the same period of the previous year, boosted by cleaning, urban and maintenance services. Altogether, the EBITDA figure in both divisions totals EUR 6.6 billion. In industrial division, the EBITDA margin is impacted by the reduction in sales, which prevents the compensation of the division's fixed costs. On the other hand, the margin decrease in the services division is caused mainly by the overall increase in the production cost. Before starting the Q&A session, I would like to highlight a few key points. As we have mentioned in different forums, OHLA has demonstrated a proven track record of transparency, predictability, and prudence. All of these have made possible to the different stakeholders a better in-depth understanding of the group, of the company. The deleverage of the company continues to be a priority for the group and has been reduced by EUR 83 million in the first semester. In less than a year, the company has reduced its gross financial debt from EUR 767.7 million to EUR 440.5 million nowadays. The performance at operating level confirms that the ordinary activity runs according to the guidance provided to the market. Our performance in terms of order, of order intake, as previously said, will have a favorable impact on the future sales. Also, it is important to mention the very positive evolution in the concession business. OHLA has been awarded with three different concessions in the last 12 months in the ranges previously announced to the market. All those concessions will strengthen the company's value, the group's backlog, and the construction activity. Thank you all for your attention, and we can start now with the Q&A session. Ladies and gentlemen, the Q&A session starts now. If you wish to ask a question, please press zero one on your telephone keypad or send your questions through the webcast platform. Questions received by phone will be answered first. Thank you. Ladies and gentlemen, let me remind you, in order to ask a question by phone, please press zero one on your telephone keypad. Thank you. There are no questions over the phone. I will now give back the floor to the OHLA management for the webcast questions. Thank you. Good morning, everyone. Thank you for your attention in this conference call. My name is Pedro Arellano. I will start with the questions that we would just receive via webcast. The first one is regarding Canalejas. Why we do not sell the asset at this moment? What is your view on this asset? I think, José María? Yes. Good morning, everybody. Well, as we have explained in the past, I mean, this is not a strategic asset for the company, but since it hasn't been fully opened yet, the hotel, if you remember, was opened two years ago, but the commercial gallery has recently been partially opened. We need to wait until the ramp-up of the asset in order to obtain the maximum value. We will wait until the end of the ramp-up to analyze and to find the best moment to sell the asset with a capital gain. That's the idea of the company. Okay. Thank you, José María. Next question is related to the shareholder position that we have in the CNMV. Why it's changing and why we do not Control, we don't have more visibility on it. I will take care of this question, if you permit me. Basically, as it is structured in the market, we cannot control the different positions that the different stakeholders want to make in our stake. Basically, all the efforts that we make is to create liquidity and to make options for all of them to enter or exit the stock at the moment that they want. That's why we have a liquidity contract. Having said that, taking into account the structure of the market, what you see normally it's the main shareholders, direct ones, and also indirect stakes that they hold over the quote. What that means? That means that normally the It's quite tricky, the way that we analyze those. What I mean? For example, Sungrow appears like 15% indirect, but also appears Goldman or DWS and any other custodians. Basically, Goldman and DWS, when we analyze those stakes, the feedback that we receive is those are made of small different positions of the different wealth management, different funds that they have, indirect positions or for any others or like these kind of things. Basically, we never treat them as financial or long-term investors. For us, it's Grupo Villar Mir, Sungrow, you also have Melqart, you also have the Amodio brothers, and this kind of long-term investor. For us, it's the composition of our shareholdings. Any other detail or explanation regarding this, contact us directly to the IR department, and I will provide more detail on how we treat the different stakes that we hold. Next question is related regarding the CHUM hospital, the Montreal hospital and the stake that we have, and how much we expect to automatically use to repay the notes. The question also covers when the remaining proceeds from Old War Office. Let me try to address this question in both of the angles. First, with respect to the Old War Office, I would say that the payments of the different installments of the payment have been occurring according to plan. At this stage, we have already received around 60% of the value, and we're still pending around 40%. That is around EUR 40 million. Everything so far has been going according to the original program of payments. With respect to the Montreal hospital, I should say that much advancement has been achieved. We are very close to be able to finalize this transaction, which has taken, unfortunately, much more administrative burdens and obstacles than we were expecting. At this stage, we would see this transaction closing in the coming months. Okay. Thank you, Tomás. This also covers some of the questions that we received regarding Old War Office and CHUM Hospital. Basically, I think the other part of the question is if all the funds that we will receive from those asset rotation will be directly to the redemption of the notes. Basically, yes. There is, as you know, a waterfall agreed with the different creditors of the company, not only the bondholders, but also the banks. The main receipts from the sale of the assets, from the rotation of the assets, the so called designated assets, in terms of the agreement reached with the bondholders, are destined to cover the redemption of such notes. Yes, that is why we have reduced in a very significant fashion from EUR 770 million- EUR 440 million our leverage, and we're still working on that line. That's our main goal, to reduce the leverage of the group. In relation to the third part of the question, the possibility to dedicate some monies to do a buyback. I mean, we are not thinking in doing this. I mean, we will use the available cash of the company to invest or to accelerate the concession activity, but not to doing buyback of bonds. Only one clarification. When we say buyback, we're referring ourselves to buying back bonds in the open market. Taking any potential advance on the, what we think is, the note is not liquid and the price do not reflect the actual value of the notes. Okay? The next question is related to what we expect regarding the EBITDA margin or EBITDA level in the second half of the year. I think that is already covered in the speech that Tomás just give to you. I will basically refer to that. We reiterate the guidance. We will expect the EBITDA to end this year around EUR 110 million. The performance of the company in the first half of the year is, as Tomás said, we think it's good. Okay. This, I think, is for José María. We have another question related to the working capital in the second half of the year, if we can collect money or we can offset, partially or totally, what we have consumed in the activity consumption this first half of the year, which I will include. It's lower than last year's, including higher production and higher order intake. Yes, what we expect for the second part of the year is having a better performance than we had last year in the second part. Final result should be positive, and we should be near break-even by year-end. Okay. Next question. Yes, it's also related to the working capital. If this recovery will be related to organically or we are assuming the asset sale. No. It's independent of the asset sale. It's organic. Yes. I will reiterate what Tomás just said. What we collect from the asset disposals, the planned one, Old War Office is our chance, in case we can materialize the settlement, which is really close. We will dedicate automatically to the net debt reduction. Basically, of course, yes, our guidance related to the working capital is excluding those asset disposals. We have another question related to Canalejas. It's referring to the value of Canalejas and how we account, basically, if I understand correctly. Our investment. Our stake. Yes. Yes. Well, basically, we have the value of this investment reflected in our accounting in the range of EUR 180 million. At this stage, we're expecting, of course, as José María already explained, the asset to ramp up, and when mature, we are expecting this investment to increase its value, definitely. Yes. Basically we put ourselves more prudent, more conservative related to the actual circumstances. In the future, maybe with the same rationale, maybe we can obtain better than the accounting that we are accounting that asset in this moment. It's only to put ourselves a little more prudent. We expect this. We have another question. We expect that the construction business division maintains that level of margins at the end of the year, around 4%. As I explained already in the beginning, we are now currently examining very carefully each geography, each client, and each project to make sure that the very complex worldwide macroeconomic scenario, and particularly inflation and the disruption of supply chains, do not affect our margins. We expect the construction business to keep performing because, as I explained, the order intake has grow very satisfactorily. We expect to keep these sales and these margins, but we are being very careful with respect to any negative impact on the inflation scenario we are now facing. Yes. Also, I want to include that also in the results report yesterday, we stated that we continue tracking and monitoring the evolution of any project by type, by client, by geography, and basically, we are on top of any potential downturn that we can suffer. We have another question comes regarding, again, Canalejas, and it's related, when we expect the stabilization of the asset, the total asset, or in other words, when we expect that the ramp-up will be concluded. Yeah. It's not easy to answer this question under the current macro situation, but I would say that normally this should happen in a minimum of 18 months, between 18 and 24 months. In order to get there, we need to finish first the opening of the entire gallery. As explained earlier, the main problem we have to deal with has been the pandemic and its effect. Because even though the Four Seasons Hotel was open in the midst of the pandemic in September of 2020, the commercial mall has taken a little longer because some of the firms have been reviewing their plans precisely because of the pandemic, and some of the original proposals of opening the gallery were delayed. That's the reason why it has taken a little longer. This ramp-up has not initiated since we haven't finished opening the gallery. We have another question, and we jump now again to the organic growth of the business, that is related to the concessions that we obtained in the past and the new one that we just have announced during the speech of Tomás, that we won yesterday. Related to how much we have to invest or is expected to invest in concessions in the coming years. How much equity? This is a very relevant issue because it allows me to explain that the company has changed the approach towards concessions compared to the one we follow in the past. Now, we have decided to try to tackle to achieve as many concessions as possible but with an equity exposure more limited than in the past. Our model now is planned to only keep a minority stake sufficient to, of course, manage the concession and operate the concession, but with the minimum equity exposure. Our investments are gonna be in the range of EUR 35 million-EUR 40 million per year in terms of concessions only. Yes. We have another question related to inflation that I think Tomás just covered with explaining the evolution of the performance of the construction division in the second half of the year and versus the first half. We have another question, and I will read it. The EBITDA in the first half of the year stands at EUR 41 million. The guidance for the full-year is 110, around or higher than that. Is this guidance maintained? If so, the second half of the year will be stronger than the first half. Is there any specific issue that explains why the second half of the year is stronger than the first half of the year? It has always been the same. If you analyze last year's numbers, it happened the same. The second part of the year was stronger than the first one. It's a business cycle. Yeah. This year, we will have the same effect. Yes, we should be near the guidance, even if the macroeconomic situation is quite complicated. Yes. Basically, as explained. As explained, we are almost there, so. I'm reviewing the different questions that we have. Okay, we have. Oh, another from Canalejas. If we can give any sense of how occupancy. I think that as this, I think that occupancy is only related to the commercial gallery. I think that maybe the question will be more in sense of if we can give more sense of how it's performing the business and the occupancy of the gallery and these kind of inputs. Yes. I mean, we are still in the very initial phases of the gallery, so it's kind of early to try to reach any conclusion about the occupancy. Something that I can share with you is that the main firms that are already operating there, they are very satisfactory with the results already obtained. They are achieving the sales and the margins they were expecting when they proposed the investment. These things have been working according to plan in terms of the gallery. On the other hand, the hotel has been performing in a very, very favorable fashion, with occupancy and rates above what they had originally planned for the year. Okay. I think it's better if we can give some seconds to the participants in case they want to make any other questions. I am reviewing that now. Maybe, if there is any question. Here is another one. What other asset sales do you expect to complete this year? We don't have any additional asset. We've been talking about all of them. We will be receiving the remaining payments of Old War Office. We will be receiving the amount of the CHUM Hospital when available. The last material important asset will be Canalejas that we've been talking about. Okay. Understood, I made a mistake. That's my bad. I think that there is no more questions or we cover the 99% of them. Unless if I'm not correct. Hold on a second. Oh, we have two new questions. Can you remind us the combined proceeds from Old War Office and the Centre hospitalier de l'Université de Montréal? How much is the combined money that we will receive? Basically, it's when we stated in the relevant event in November 2021 related to the CHUM Hospital, that we gave a reference there of around EUR 50 million-EUR 55 million, taking into account the FX rate and all the adjustment to the contract. This is something that is a reference that we brought to the market in that moment. At the same time, we always said that we sold or we retained Old War Office in a book value. That is, roughly EUR 100 million, and we only received the payments in June 2021, in December 2021, in March 2022. All of that already disclosed the results. In the second half of the year, as the management just told you, we expect to collect the rest, what is pending. Basically, I think if my mathematics are correct, about EUR 90 million-EUR 100 million, and the vast majority of that will be directly automatically to the reduction of the outstanding notes because it's the debt that is the priority. We just canceled the ICO loan, so we don't have any other outstanding debt. Okay. Next question is related. Hold on a second. Oh, it's related to the Amodio brothers. If they want or we assume that they want to increase their position in the company, their stake position in the company. Do we expect another takeover bid, OPA, in the short, medium, long term? Well, here, what I can say in the name of the company is that we have no news regarding any intention from any shareholder, nor the Amodio family, nor anyone else, to increase their position at this stage. We know that they are still strongly backing the company with their roles on the board, but besides that, we have no news on any other projected increase. Okay. I have no more questions. I think that we can close now. I am refreshing here all the questions that we received via webcast, maybe with no success. I'm refreshing. No. There is no more questions, right? I have to tell you, I'm refreshing right now, but in case I don't cover any question, please, contact me directly in the IR department, and I will answer all the questions that you have around the company. Thank you all for your time today.