Ladies and gentlemen, good afternoon. This is the call operator. Welcome to the presentation of the results for the 2025 of the Achai Group. As a reminder, all participants are in listen only mode. After the presentation, there will be an opportunity to ask questions. At this time, I would like to turn the conference over to Mr. Micky, Head of IR. Thank you. Thank you, and good afternoon, and welcome to the conference call for the presentation of the Achia Group for the first half of twenty twenty five. Fabrizio Permer, CEO, the deputy general manager and CFO, Pierre Francesco Arany, will outline the results obtained in the 2025 and the guidance for 2025. As usual, at the end of the presentation, there will be a Q and A session. And I'll leave the floor now to the CEO, Mr. Palermo, who will make comments about the first slide Fabrizio, you have the floor. Thank you, Thag, and good afternoon to you all. Thank you very much for being here for the presentation of the results of the first half of twenty twenty five. I'm glad to announce that Achai Group is among the leading companies for the water service in Italy. And I will start the presentation of the results as usual by making an analysis of the regulatory and market environment. Now as to the water business, I'd like to outline the approval of Arraya tariffs. And as you know, we have received a technical quality and contractual technical and contractual quality incentive that was recognized to our chair for an amount of €36,000,000 as to distribution of electricity, tariffs, provisional tariffs of Auretin were published in May, and Aureira has adjusted the evaluation of rub by following and adopting the Italian IPCA and calculated by Eurostat Italy. Now let's move to commodity prices and inflation. Gas and electricity power in the 2025 recorded an increase of plus 28% for electricity and plus 12% of gas this last year, same period. Now on Page three, we have listed all of the main events and operations carried out by group in the first half of twenty twenty five, which follow-up the strategy that is outlined in the business plan of 2028. First of all, WTE in Rome, where we expect to start work very soon. And then the binding offer received from any candidate for the acquisition of ACCIO Energy SPA, which is part of a strategy that was contained in the business plan. Now this deal will help the group to strengthen the group as an infrastructural operator as we shall then turn to the presentation. And then I'd like to point out the setting up of a new company, ADAS, that was established to help the group grow in the gas distribution sector, confirming our focus on infrastructure businesses. Moreover, I'd like to tell that Modi on the May 28 improved the rating from stable to positive. Now this reflects the good financial profile of the company, and it also confirms the positioning of the group towards the infrastructure business. Now if we now go to the main terms of the offer that you see on Slide four, the deal was approved by the Board of Directors. The offer relates to the acquisition of Achea Energia with exclusion of energy efficiency, electrical mobility and energy management, which are not included, and that the closing is expected by the June. Let me remind you that the disposal of Achia Energy is in line with the strategy that we have in our business plan, and this will help the group become stronger as an infrastructural operator. This will help us to reach more than 95% of the EBITDA, which will come from regulated businesses. And this will give Acheya better visibility and strategy, thus reducing the volatility of the results connected to the market. Now the market of the sale of electricity and gas is characterized by the need of strong economies of scale. And one of the rationale of this deal of this transaction is due to the fact that on the market, we have big players that are capable to attract a high number of customers. That's with an increase in competition on prices as that has occurred on other markets. For this reason, we decided to accept the binding offer received from any credit. If we go to the highlights of the first half of twenty twenty five, Slide six. Now the results show a strong growth of all economic indicators and confirm the soundness of the financial structure of the group. In line with what envisaged from IFRS five, the economic results with the exception of net profit do not include actually the selling of actually Energia. The reported EBITDA, $731,000,000, plus 12% versus the first half of twenty twenty four. And the growth of recurring EBITDA corrected for Chemskoye and the one offs will be seen later on, but it is equal to 19% driven by the business of water, Italy, grids, public lighting and generation businesses. Contribution of regulated EBITDA, it is now 49%. Net profit, 27,000,000. It's going up by 32%, 7% organically following the dynamic recorded at operational level. CapEx went up by 18% at $668,000,000, including grams. Now the operating cash flow, 117,000,000 and a net EBITDA for a 3.36 times. Now this ratio takes into account the cash in of the proceeds of the sale of ACHA Energia and the sales of the high voltage network. I'll leave you the floor to Francesco Arrange, the CFO, who will get into the details of the results. Thank you very much, Abritz, and good afternoon to you all. We are now at Slide seven, where we see the main indicators of the dynamic of the first half of twenty twenty five. We see a strong growth. EBITDA in the first half of this year, our share has recorded a growth now of 9% versus the previous year, adjusted by one offs and change in scope CapEx. As you can see, $668,000,000 during the first half of the year. Investments have grown by 20% versus the same period of last year. Now our net profit, which includes the contribution of Achea Energia, goes up by 7% on a recurrent basis and reflects the good operating performance of the company. The financial position, 4,090,000,000.00 to 5.04 as at thirty June of twenty twenty five. These data do not include the net debt, which is represented by discontinued operations. Actually, Energy is subject to the dividend. Now the financial performance pro form a, as you can see in the note, moves from €4,300,000,000 in December 24 to 5 $4.04 4,000,000,074. Now here, let me remind you, the data at the 2024 included nine months of Acqueducto Del Fiora that was still to be integrated. Now let me move on to the next slide, and let's see the EBITDA. In the first half of twenty five, the EBITDA went up by EUR 59,000,000, and this is due to growth and the contribution of Grids and public lightning and also because of the increase in prices of the energy prices, also increased in volumes. Now on the right, you see the one offs and change in scope amounting to 9,000,000 for the first half of twenty twenty four, which relate to the retroactive application of the tariff update relating to MTI four that was accounted in the first quarter of twenty twenty four, the consolidation of Acuedoto del Fiora and the release of tariff refund and the term and WTI shutdown for revamping. Now as to the first half of twenty twenty five, you have only the water quality incentives at consolidated level. It was 36,000,000 sorry, a group level EUR 36,000,000 at consolidated level at EUR 25,000,000. Let me now move on to the recurring net profit, which goes up versus the first half of twenty twenty four, which is relating to the operating performance, which contributes 18,000,000. Is made up for by the financial management with the reduction of financial proceeds because of reduction of rates. Now the for the EBITDA, you see the detail of the one off for the 2024 and of 2025. Let me now move to CapEx. And here, you also need to take into account the contribution of Atria Energy in the first half of twenty twenty five, CapEx went up about 18% versus last year, and 87% is related to the regulated business, water and environment and grids. You see that the contribution of regulated businesses to EBITDA is 96%. 95,000,000 of CapEx financed by public contributions for the water grids and the grids in public lighting. And then you see all of the initiatives that were carried out, the intervention on purification systems, widening of the sewage network. Let me now move on to cash flow. The absorption of cash is around $460,000,000, and this is related to the change in working capital, making it to greater credits, to the percussion of rates, which would be then resolved by the end of the year. And then also CapEx, as we remember, they were up in the fourth quarter of twenty twenty four. And then regulatory receivables long term that are to be absorbed in the second part of the year and an increase of commercial receivables for the accounting of the reward in the water business that we cashed in the third quarter to a greater transparency. We have represented the effect of the company consolidated equity. For instance, the passage of Acquedot del Fiora, which has an impact of 18,000,000 in 2025. They were SEK 3,000,000 in 2024. And the presentation here also puts Energia among discontinued operations. I'm not covering here the other items because they are clearly understandable. Let's now move on to the financial structure. The average cost of debt in the first half of the year, 2.7% versus 2024, which was 2.69%. Now of course, this is affected also by the reduction of rates. Nowadays, 11% of our debt is at variable rate. Remember that in February 2025, we reimbursed at maturity the yen 20,000,000,000 private bond issued in March. And then we received the €500,000,000 reserve from the EUR 500,000,000. And the two new loans were signed for a total of EUR 180,000,000, of which are directed at EUR 125,000,000 and the guaranteed net of EUR 55,000,000 by Sachin. Let me also tell you that we have repatriated in Italy the issuing of our bonds on the MOT market, which was approved by CONSORB. Let me now move to the description of the individual business units. Page 12, we have the water Italy. Now the numbers have been recalculated to take into account the new impact of the new regulatory framework. Now the first half of last year, we did not have this effect. And also, the results include also a regulatory order which is now consolidated at equity. The data for 2025 also adjusted for the rewards received for technical and contractual quality. Here, you see the result going up by 32,000,000, the EBITDA, thanks to tariff growth and the high results of the company's consolidated equity. Now net of public funds, an increase of 21% versus last year, which is related to maintenance of the network and purification plants. Now public and Lightning described despite the WACC going down by 40 basis points, the EBITDA goes up by EUR 8,000,000 plus 4%, $225,000,000 in the first half of the year because of the investments made of Arab and the change in the Arab revaluation method starts in 2025. CapEx net of public grants are stable at EUR 150,000,000. As to the environment and business net of one offs, even due to the revamping of the WTN. Now you can see the stable recurring EBITDA investments are going down by some 4,000,000 because of the revamping of the term in WTE that was carried out in the first half of twenty twenty four. Now as to generation, EBITDA has been up by SEK 14,000,000 versus the previous year, thanks to higher prices on the energy markets and greater installed photovoltaic capacity. You see that the photovoltaic capacity has gone up to four twelve, as you can see in the bottom of the slide now investments in the year, BRL 11,000,000. As to the guidance for 2025, because of the results that we achieved in the 2025 and because of the change in scope, that is the disposal of Achia Energia, which is now among discontinued operations, guidance has been revised where EBITDA is going to grow in 2025 between plus 6% and plus 8% versus 2024 and the CapEx at 1,200,000,000.0. Now all of these data were revised based on the EBITDA of 438,000,000.000, which already includes of the sale of Atria Energy and the contribution of capital's consolidated equity in 2025. And then you see here the guidance. Net debt EBITDA between 3.4 times and 3.5 times, and this includes the price of sales of high voltage grid and of Atria Energy. This is it. As far as we are concerned, we can now take your questions. This is the Chorus Call conference operator. Now you. The first question is by Francesco Sala with Bank of Accross. Good afternoon, everyone. Thank you very much for the results. I thank you for giving me the floor. First of all, can you give us an indication of the closing of the sales of the high voltage to Tern would be in 2026? And then a question on the water business. We've seen an increase of EBITDA. Is this going to repeat the result in Q3 and Q4? And then the working capital, can you tell us something about the changes or the absorption for the full year 2025? And then can you tell us the impact of the M and As in 2025 after the disposal of Achia Energy? K. I'll take the first question about the high voltage network. It will be closed within September. So it will occur in, like, 2025. As to the question about the water business, the growth of EBITDA in the 2025 versus 2024 was around 9%. And this growth was related to a linear operating costs prices. The normalized growth here is six as to the impact of M and As. So D and As will be around 148,000,000. So 55 of these will be rated to discontinued operations. Now as to the working capital, as I said, during the first half of the year, we usually have greater receivables for the per equation items and also because of the growth in CapEx in 2024. As we usually say, we expect the working capital back to normal by the end of the year and therefore, a stabilization of these items, which we have described when talking about receivables. Okay. Thank you. The next question by Javier Suarez with Mediobanca. Now good evening to you all. I have a couple of questions. So the first about the guidance. Now you have revised upward your guidance for the EBITDA up to $1,370,000,000. This may be explained by the quality premium of water and then the higher voltage network sale to Ternan will be will occur by the end of the year. But then you have some other SEK 13,000,000,000 more of increase in the guidance, which I cannot understand. What is this going to be? And will we have it also in the next following years? So to understand is the one off or will it be sustainable in time? Another question about the regulatory framework and the renewal of the electricity distribution networks in Italy. Can you give us your view? Something about your conversations with the administration, so the authorities, what can we expect before the end of the summer? And what is the impact that this will have on upfront payments? And then waste to energy plant in Rome, can you give us a few details about the timing of the investment, when we start investing on this plant and when will this WTE plant be up and running, therefore, operation for Chia Group. Well, thank you very much, Javier. As to the guidance over and above the water premiums, well, part of this is related to the application of IPCA in Italy and then, of course, also to operation efficiency. So the growth is not only related to not only related to the tractors, but also efficiency. Of course, the one off is related to premiums, and the rest is coming from operational efficiency. Now as to Areira, we always are asked this question by analysts. We cannot know what Areira is going to tell the ministries that relevant ministries, who then have to decide for us the concession of electricity and grids is fundamental to guarantee greater CapEx versus the current ones to guarantee the safety and the resilience of fleets themselves. For the Acharya Group, whatever decision is taken, what is important is to have more time than we have now to invest more in the networks to have a greater safety and resilience of the network. These investments can no longer be delayed. We are always committed to this and we have always answered, but we're ready to invest more to meet the goals that I have just mentioned. The other question is about the WTE in May. Now the authorization process is now ongoing to allow us to get into the building site. Now as to the financial exposure, the first investments will be between the end of this year and the beginning of next year. As we said during the other conference calls, certain projects will be financed with a project financing scheme It will have been computed and posted within accounts. We are now finalizing the funding contracts. And I'd like to reassure you all that the project is very important. Well, I want to ask you very much for allowing me to ask questions. I'd question like to ask something about the disposal of the retail retail business. Now we've seen the evaluation, which is also indicated in your presentation, but then the transaction per se also includes the deconstructation of cash. So the multiples are a bit lower therefore versus the valuations that we've seen now on the market in the past thirty years. And also because the retail this year has been very strong. Your guidance was around EUR 114,000,000. And perhaps you could go a bit higher. Can you give us some market considerations, why you have been given this price and the earn out? To what extent actually, what will you cash in the earn out next year? And then do we have to take into account any reverse factoring that we have to take into account for the debt at the end of the year or if the debt is clean and risk factoring after the sales of Arcea Energy. And then the sales Energia, does it put an end of the transformation of the group towards a more regulated business? Or are you keeping the generation within the perimeter, which is not a regulated business, which could be also the option of a disposal? I'm very sorry, I have a few more questions very rapidly. When are you going to update the business plan considering that after the disposals, the company is completely transformed? And what makes the guidance move towards the lower range or the upper range of the figures given? I'll start from the first question. When we speak of M and A, we are always speaking of multiples. And here, I'll give you some more details. Here, the issue is the strategic nature of the operation. As the CEO said before, this was part of the strategy that we outlined when presenting the business plan that is focusing on infrastructural business. The retail market at the moment is a market where there is quite lively competition. We saw what happened in last year on the market. Now operations operations of deals on the retail markets haven't been done for some time. Many operators are coming onto the market. It's becoming like the telcos market of a few years ago. The market is concentrating. Big leaders are acquiring customers. They have scale economies of scale. They have their own channels. They have the possibility of using cross selling. At Energia as a stand alone basis, we did not have these features. For this reason, we took advantage of a favorable market condition and the goal that of disposing of the company and reinvest the proceeds in infrastructural businesses. Now if we then consider the transaction itself, the multiples are a bit lower than the other transactions on the market. I look, however, the enterprise value on the basis of the customer base. In December 2024, we had 182,380,000 customers. From here, we need to remove the customers of Tupelo at the market, of safeguarded market, where margins very different and quite low and the free market customers are around 1,200,000. If I do the relationship between 460,000,000 enterprise value and the the number of customers, 1,100,000, we get to 385 per customer. And if you add the the earn out, it goes up a bit more. Now, of course, you need to take into account the mix between light and the dust. We know that the gas customers have a greater value than the light or energy customers because of the different churn rate. Cannot give you my view about the other transactions on the market because every deal of a transaction of this kind is linked in itself. And then the EBITDA recorded in 2023 and 2024 by Atria Energia is a very good EBITDA, very good result, which is due to the work of the management team has changed the performance of the company. If you go and look at the history data between 2014 to 2021 and if you go and look at the net profit, you will see that in that period, the net profit has not grown. Basically, after that, company has repositioned it also thanks to the setting up of commercial partnerships, which are no longer exclusive in nature. So being a stand alone operator, it's very difficult In the past, when you asked when the results of 2024 can be replicated in 2025, well, it depends on the competitive scenario. There are operators that which are quite big. One has 17,000 points of sales, and they have acquired quite a high customer base. These are pieces of information which describe the context and to explain that this has been a very good deal both for the seller, not us, which we are a small company, and also it's a very valuable deal for the buyer, which is a big operator. EBITDA, we have achieved a very good EBITDA numbers in the past two years. But below the EBITDA, you have much costs, which are classified as CapEx. So if we wanted to work out a multiple, it's much better to use the type of EBITDA that we have used. You know, of course, when it comes to selling the companies, it very much depends on the company itself. There are companies that have commercial channels and so on. We are convinced of the good quality of the deal regardless of the economic results. Now as to the use of proceeds now from this deal, the proceeds will be used to grow our infrastructure business. Now the earn out is related to performance parameters from here to the closing date. And as to this, we don't know how much will be considered as additional proceed turnover because it depends on the market conditions. The results of the company have been good, and we expect, however, pressures on the margin and the earn out will depend also on the competitive scenario of this sector. As to the reverse factoring of the group, we now have $270,000,000 of reverse factoring and EUR 162,000,000 of these were related to ACEA Energy in December 2025. We expect reverse factoring to be a stable net of what we are going to take away from Atia Energia. Now I think you asked the question about the asset rotation. Now as we said in the business plan, production or generation is functional to support the consumptions of the group, put the type plants, energy plants, though it might not be the physical self consumption, right, and also be the virtual consumption. We're not going to dispose of this. We are growing organically in our businesses in water business as well, thanks to the concessions that we have grids, thanks to the growth of CapEx in the environment with the fourth line of Western Victoria and in WTE in Rome. We're growing there as well. And this is something which will remain as it is in this moment. Now as to the other question that you asked about the review of the business plan, certainly after this transaction, we are working to update this plan, which we will release between the 2025 and the beginning of twenty twenty six. And the last question was related to the guidance, 68% and the variability of this range is rated to the prospect of the environment market, OpEx and the number of projects which are part of our business plan. Okay. Thank you. Thank you very much. Perfect. Thank you. The next question by Emmanuel O'Gioni. Now thank you. Thank you very much and congratulations for the new results. I have more strategic questions, high level questions aiming at what you probably will better outline within the next business plan. My first question is about the potential to re leverage. I guess that from now on, regardless of the closing of the E and Sapphire will occur at the end of twenty twenty five, beginning of twenty twenty six. And I guess that you will start with the rating agencies to underline the fact that 9495% of your EBITDA is regulated. So you are to be considered almost a pure regulated company and no longer as a diversified multi utility. And therefore, the financial leverage can and must increase and change versus the previous concepts where we looked at the debt on EBITDA, whereas now perhaps we should look at debt over RAB. So my question is when do you think that you can align, you know, your leverage? Basically, we had to go higher up towards a pure regulated business leverage. And then another question is the payout ratio. I heard about the possibility of investments, CapEx in regulated businesses. Of course, depending on the concession in the energy distribution and then the possibility to acquire gas distribution after the disposal of some companies or around the waste of energy plans and the approach that you have, think there is some room to grow the payout and the remuneration of shareholders. Are you going to do this? Now as to the releverager, well, this is something that we constantly discuss with the rating agencies. Of course, we need to wait indications on their part as to how we should proceed. Now we have a threshold of 3.8% to 3.9% net debt EBITDA ratio, which should give us some margin versus 3.43.5%. But our peers are around five, 6x the EBITDA. So widening this ratio for a share means doing more versus what we do within our infrastructure businesses. I agree that now we are a pure infrastructure company and 95% of our EBITDA comes from regulated businesses. So what we can assure is a constant dialogue with the rating agencies. And with the update of the business plan, I guess this will also confirm the rating agencies that Atria has transformed and moved and done since an infrastructural company. With the update of the business plan, we can review perhaps some of the indicators, but we'll have to wait until then. Thank you. Now the next question, David Decandela in Tesa Sanpaolo. Good afternoon on my part, and thank you very much for the presentation. And thank you for allowing me to ask my questions. Now first question about generation. Now talking about physical or virtual hedging within the company. Now I wonder whether the hedging policy of the company will aim at stabilizing the losses of this business and be less exposed to the energy scenario, expecting also a decrease in prices starting from next year? And then a question about water. Can you give us an update of the market? What are the main regulatory issues? What is the potential for Achea to widen the perimeter of the water business for Achea? Is there a problem of tenders? Or are you taking part in tenders? Is there any company that you're looking at that might be interesting for you? And then Das distribution, this is the third question. Could you give us perhaps some help to better understand your strategic road map here. Basically, your goal in terms of geographic positioning and also strategies and synergies since we're speaking of infrastructure businesses and what are the main drivers to grow in this kind of business? Okay. I'll start from the very last question that you have asked. Now Ugas was set up to concentrate in a company the gas activities that we have in Abuso and in Colombia. And the goal of the company is that of analyzing opportunities on the gas market. Opportunities, however, that must be in synergies with the other networks, water and energy. Of course, gas is different from water and different from electricity. But managing a network, If you have network close to it, you might have synergies that you can extract. As we said during the previous conference call, we are assessing opportunities along these lines. And then if there are tenders for a big network in areas where we are present with the water business and with the electricity business, we will assess the opportunity. The other question was about generation. I think today, we produce one terawatt a year, which 6% is produced through renewable sources of energy. The consumption of the group is triple free at kilowatt, and therefore, there is the possibility of, you know, use renewable sources so that we can move to the physical consumption totally rather than only the virtual consumption. Now as to the water business, the history of Achai is very clear. Now recently, we had three tenders for water concessions. The first in Imperial, where we were awarded the tender. Other big operators presented their bids. And then another tender in Syracuse and third tender of Benevento, which is still to be awarded. But the first submitted bid is the HCA Group. Now of course, we will take part to the tenders that we will see going forward. As we said recently, there are important tenders in Campania. There are also other tenders, which are going to be announced. And then there are designing projects ongoing. And we will look at all of the opportunities. Now to grow organically, of course, then you need to take into account the M and As are related to opportunities. The strategy is to bid for all of the tenders that are going to be put on the market, and we shall focus our attention and our and we make all the efforts to play the best in our capacity. Now I'd like to remind you that if you have a question, you can press star and one on your Ladies and gentlemen, at the moment, there are no other question from the conference call. Well, then thank you very much for taking part in this conference call. And we are, of course, at your disposal if you have any follow-up question. Thank you very much. And I hope you have a good summer. Thank you very much. This is the conference call operator. You can now disconnect your phones. The conference call is now over. Thank you.