Good day. Thank you for standing by. Welcome to the Prysmian to acquire Atkore conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 and 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Massimo Battaini, CEO. Please go ahead. Morning, everyone. Thank you. Welcome to this call. It's very important. I'm very excited to mention the completion of this M&A acquisition. It's an important step forward in our leadership in the U.S. You remember that we started two years ago, in June 2024, with the leadership in electrification space cables with the Encore Wire acquisition. We gained momentum in that market. We got exposure to data center. Now this acquisition is bringing us additional complementary products. They make us a unique solution provider player in the electrification space in U.S. We are becoming one-stop-shop provider of cables across the whole range of cables for data center, non-residential, residential application. We complement this cable performance with all the components that are needed and utilized to install cables in the different building, be they residential, non-residential, and also data center. In this sense, with this shift to solution provider, we are even more exposed to the long-term growth driven by the stronger sector driver growth in the electrification space in the U.S. The acquisition is extremely creative in terms of additional value. We will be adding $150 million worth of synergies to the combined entity, thanks to commercial strengthening and operational efficiency. Of course, as you've seen, we will fund this growth, this acquisition partly with debt and partly with equity in order to preserve our investment-grade rating. In this context, this acquisition really fits extremely well the Prysmian strategy to become even more relevant in the U.S. This one-stop-shop solution provider make us even more relevant with distributors, who are the key partners to our business in the U.S. We will become more sizable. We will become more complete in terms of product offering. There is a common go-to-market. All products Atkore sell are sold to agents, to final distributors in the same way cables are sold by Prysmian through Encore and the legacy Prysmian perimeter. The synergy opportunity I mentioned before will create additional EBITDA margin improvement over the coming years. We will expect again to confirm this completion of the synergies by the end of 2029. The product offering of this player is pretty broad. There are many components. Let's call them installation components, so steel conduits, pipes, electrical fittings, metal framing, all the stuff to manage cable during the installation, cable tray, wire basket, all this stuff. They play in many end markets: industrial construction, data center, cables and components for power grid, for utilities, renewable business, and specialties. The business is supported by 30 factories, so they're very spread, and they're able to reach out all the end markets in the different states in the U.S. They also have a presence outside the U.S. 15%-16% of the revenue is made overseas. $2.8 billion revenue in total in 2025, $306 million EBITDA, and 14% EBITDA margin. Some comments about the value of the acquisition. The EV is $3.8 billion, equivalent to $95 per share, and plus the debt. The multiple based on 2025 is pretty contained at 9.8x, and after synergy, it will further go down to 7.1x the EBITDA of 2025. Value creation, $150 million synergies. From day one, from year one, you will see a single-digit growth in EPS, high single-digit growth, then supported by a double-digit growth at a time, at run rate, in implementation of the synergies. It was important to preserve our investment-grade rating through this acquisition. At the end of 2026, the pro forma ratio will be 1.4x the EBITDA year-end. Confirming the value creation associated to this acquisition. It's a third acquisition in a row in the U.S. We start with Encore, giving us leadership in electrification. We continue with the channel where we gain a remarkable position in the digital solution space. With Atkore, we complement the journey initiated with Encore in 2024. The one-stop-shop is the most relevant rationale behind this acquisition. When we have a broader portfolio, and you can sell the whole footprint of cables that are needed by customers, data center, distributors, agents, EPCs, you gain leadership, you gain share of wallet, and also profitability enhancement in the market. Solution provider is what we are aiming at. You know that we are target out there for 2028 to have 55% of our revenues that can be considered solution, and this is actually consistent with that and even better, adding more revenues as solution providers to our perimeter. The accretive acquisition from year one speak to itself for the value and the complementarity of this acquisition to our perimeter. I think I covered this, and then I'd like to leave the floor to you for your questions and comments. You. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 and 1 again. We will now take the first question, coming from the line of Max Yates from Morgan Stanley. Please go ahead. Thank you. Good morning. Maybe just my first question. Could you just sort of walk us through the industrial logic a bit more? When you sell a cable via a distributor, how do these products actually kind of relate to that sale? Is this about sort of packaging them together or at the point of sale? What are the advantages for the customer of having these two products kind of together under the same roof, as opposed to them just buying those kind of individually? Thank you, Max. This is the key point, a very pertinent question to appreciate the rationale of the deal. Our go-to market is similar to Atkore. We use agents to sell our cables to distributors, mainly to distributors and EPCs. Our distributors, which by the way, are the ones that we inherited from the Encore Wire acquisition, already sell other cable components, and call them installation components, alongside our cables. In particular, some of them already sell Atkore products to the same customers who we sell the cables to. At the end of the day, the packaging is the logic behind this. When you have a larger portfolio, and they go to market through our own agents, which we will, of course, consolidate with the Atkore agent. When you sell the cables plus components, you enhance your chances to win the bid. You become stronger, you sell more than individually because it is actually a package. You need a cable, but you need at the same time, that you deliver the cable, you need all the components to store cables at the premises. That's the strong rationale behind this acquisition. Complementarity portfolio, same go-to market, same agent, packaging solution, packaging orders. Okay. Maybe just sort of two more brief ones. Just the synergies, how much is cost, how much is revenues? Just if there's any kind of guidance you can give us there. We have, out of the $150 million synergies, more or less 65% of those synergies are commercial. Call it between $9,000 million. The rest can be associated with operational synergies, procurement, and organizational synergies. $100 million revenues, a margin of lift, $50 million cost efficiencies. Okay To be honest, Max, we haven't completely embedded this $150 million on the operational side. Opportunity to further consolidate the perimeter. There is also some cable production at Atkore sites, which we might decide to move in our factories. All these additional opportunities have been included in the original $150 million submission. Okay. I'll let someone else ask about the equity raise, but my final question is actually just more about competition in Atkore's end markets and how you get comfortable with that. If I go back, I think I've written notes in the past about kind of Atkore's profit warnings back in 2025, where people were kind of comparing it to your business. They had a lot of issues with imports from Mexico, I remember at the time. How do you get comfortable with the sort of competitive landscape? I would assume their business looks a lot better under a tariff regime than not. Does this acquisition work in a world where we don't have 50% tariffs on imports of raw materials? How did you get comfortable in the due diligence with Atkore's competitive position, given this seemed to be a real issue for them two, three years ago? Yeah, we carefully analyzed that in our due diligence, those aspects, Max. There has been a normalization in the pricing and margins of the company. The trends that they follow in the last five years is pretty much the same that was recognized in our legacy Prysmian Inc. and Encore, where there's been an increase of margin through period 2021, 2022, and 2023, and then a normalization. We see up to now at the bottom of this normalization. In fact, the margin has started improving in quarter two and quarter three on this fiscal year 2026. As far as competition is concerned, we see them, first of all, they are the ones with the largest portfolio and the deepest portfolio. They have a comprehensive offering in terms of installation components. Most of the competitors have a very adept presence, but only in few verticals. That's why their combined cables portfolio we own, which is the largest possible, give us a significant competitive advantage over the other competitors. As far as the target is concerned, we didn't see particular concerning point there. They have good sources for the key commodity material, competitive sources. They suffer a lot in terms of operational inefficiency, more than raw material cost increase in the last few quarters. I think that with the consolidation opportunity and bringing the discipline of Prysmian will restore a proper efficiency manager, cost manager, and go for an enhancement of EBITDA margins. That's really helpful. Thank you very much, Matteo. Thank you, Max. Thank you. We will now take the next question from the line of Uma Samlin from Bank of America. Please go ahead. Hi. Good morning. Thank you very much for taking my question. My first question is on the data center exposure of Atkore. It seems like they do have a relatively significant data center exposure. Would you be able to quantify that? Also, it seems like they've been growing a bit less than the Encore business, the data center exposed part of Encore at around 10% year-to-date. Would you be able to elaborate a bit more? What are your thinkings there? What should we think about the total share wallet for your data center customers after the acquisition? Thank you for the info, Uma. They have more or less 10% to 15% of revenues in data center. They've not been able to capture and carry the growth in data center for many reasons that I don't think we need to dwell on now. That's exactly the point. Why we've been able to grow fast in our data center end market, and our share of wallet has increased a lot, and we became the number one provider of cables in data center. Having this additional piece of portfolio where we can combine cable, armored cables for data center, sophisticated application with installation component, we can further accelerate our growth in data center together with Atkore. As Atkore can join forces, it make Prysmian even a stronger player in the data center market in U.S. That's super helpful. Thank you very much. Another one I have is a follow-up on the synergy part. This reminds me a lot of the General Cable deal you did in 2018, and I was wondering, do you see a lot of synergies in terms of procurement of raw materials, and SG&A and manufacturing optimization? I guess you touched a bit on that. Would you be able to elaborate perhaps a bit on that? Thank you. Uma, I would rather associate this acquisition in terms of similarity more to Encore than General Cable. General Cable, the deal was aimed at consolidating the market. 75% of the synergies were cost synergies, and we didn't think of achieving commercial synergies back then. In reality, we had also upside in commercial synergy. When you look at the size of the synergy with Atkore, $150 million, this is the same amount that we committed to achieving in Encore, $150. The breakdown between commercial and operation is exactly the same, where $90 million commercial synergy with Encore, and we have now $9,500 million worth of synergies in Atkore. The operational synergies are slightly different. There were in Encore, $60 million of operational synergies basically associated to the consolidation of our cable activity legacy placement into Encore site. With Atkore, we have some organizational opportunity, we have some procurement saving, and we have also some manufacturing consolidation. The split, the breakdown is pretty much the same. $100 million commercial, $50 million operation is more or less the same split that we had with Encore Wire. That's super helpful. Thank you. My last point is on the U.S. listing. I guess you previously mentioned that you could potentially use the M&A as a way to do a secondary listing in the U.S., seems like that's a bit more further down the line. Would you be able to perhaps let us know what you're thinking on that? This will further expose us to the U.S. We will become even more U.S.-based than before. Big revenues and EBITDA generate in U.S. will become even higher share in our total portfolio. A U.S. listing will be an opportunity at the right moment that we will disclose. Thank you very much. Thank you, Uma. Thank you. We will now take our next question from the line of Sean McLoughlin from HSBC. Please go ahead. Thank you. Good morning. Just a question on the U.S. exposure. If you could just remind us how much of our Atkore revenues are U.S.? Just looking at the other locations that you mentioned, how do we think about international locations and other market opportunities for you? Is this really just a U.S. story? Just to understand that regional dynamic a little bit more clearly. Sure, Sean. It is not just a U.S. story, although U.S. is a prevailing part of Atkore and is where the electrification market is the strongest. Outside the U.S., there is a presence in Canada, there is a presence in Australia and New Zealand. There is a presence in U.K., in Europe, and a minor presence in South America. I call it 34% is the U.S.-based revenue, and the rest is international business, which is very relevant also because it exactly overlap where we have strong cable presence as well, U.K., Europe, LATAM and APAC, Australia, New Zealand. Okay. Thank you. Can I just check some of the numbers that you gave earlier? Because it sounded like you're talking roughly $100 on commercial synergies and $50 on cost synergies, which is more like a two-thirds, one-third split. Yeah. Correct, Sean. Yeah. Okay. Excellent. Thank you. Thank you. Welcome. Thank you. We will now take our next question from the line of Lucas Ferhani from Jefferies. Please go ahead. Hello, good morning, and thanks for taking the time. Just the first one is, how do you plan on managing it? Will it be kind of a standalone within Prysmian, or do you plan to fully embed it within the electrification business? It will be managed as a standalone asset, embedded it completely in the electrification business because in electrification, with a combination of Atkore, legacy Prysmian and Atkore, it is where you will find the EBITDA coming from these three sub parameters. It will be included in the electrification segment of U.S. and also in the other relevant geographies. Perfect. Thank you. Then another one just on litigation. They were involved in kind of an antitrust litigation. It seems the main issues have been resolved, but there are still some that are ongoing. I was wondering, is there anything in the deal regarding kind of the potential liabilities or remedies that would be needed, if there's anything else on that topic? Thank you. There is still a pending litigation with DOJ that we assessed during the due diligence, and that thoroughly assessed, and we embedded this potential impact in our price. The $95 is where we factor in the possible risk arising from DOJ litigation. Thank you. You're welcome. Thank you. We will now take the next question from the line of Nabil Najeeb from Deutsche Bank. Please go ahead. Hi. Thanks for taking my question. I'm just wondering if you could talk about the financing for the deal and the thought process there. I realize it's going to be a combination of debt and equity, but in theory, it looks like you can comfortably do this with just debt financing and still be investment-grade. On the equity side, do you plan to use up all of your treasury shares or would you also issue new equity here? Thank you, Nabil. I'd like to defer the question to Francesco that is online. Thank you, Massimo, and good morning, Nabil. Equity, the financing is targeting to preserve our investment-grade. It will be a mix of equity and debt. You are right in assuming that the amount of equity will be fairly limited. Just to give you an indication, we believe that the amount of equity taking, let me convert this in Euro, taking a €3.3 billion transaction enterprise value, we believe that the amount of equity will be around 20%. This is really limited because if you convert that into shares, it means barely 2% of our capital at the current stock price. Another, say, 20%, 20% plus, we anticipate to finance through hybrid debt As you know, hybrid debt, as also from the credit rating point of view, a 50% equity component. This will provide only from the credit point of view, additional equity, but actually hybrid is not a dilutive instrument, as you well know. 20 plus 20, and another 60%, which is by far the largest part, will be debt. This is the way we will finance the transaction, ballpark numbers, and it is totally consistent with our current investment-grade rating, which has, by the way, has been recently improved to a positive outlook, as you know. Okay. The treasury share. Sorry. Yeah We can both resort to treasury shares or newly issued shares in the same transaction, basically, which will be these 20% of the total enterprise value. We have not decided yet if we will prioritize treasury shares or newly issued shares, but it is totally, let me say, neutral from a value creation and dilution point of view. Very clear. Thank you very much. Welcome. Yeah. Thank you. We will now take the next question from the line of Monica Bosio from Intesa Sanpaolo. Please go ahead. Hey, good morning, everyone, and thanks for taking my questions. I was wondering whether if you can elaborate a little bit more on the breakdown of Atkore businesses. You say that a part is exposed to data center, but if you can elaborate on how much of Atkore business do you consider as cyclical and how much not. I was wondering about the sustainable EBITDA margin for Atkore in a three, four years time. The last question is on the synergies. Should we expect synergies will be evenly split, in three years time or maybe more back-end loaded? Any flavor could be useful. Thank you very much. Thank you, Monica. The business breakdown, I give you first breakdown between the Electrical infrastructure component, which accounts for $2 billion out of the $2.8 billion, the company, and $800 million is the second division of business is called Safety & Infrastructure. This business used to be cyclical in the past, like our investment construction business. After the availability of new drivers like non-residential growth, manufacturing, plant reshoring, data center, AI-driven expansion, and all the rest, the driver of growth had become solid, and this has happened already since, let's say, the end of 2024, beginning of 2024. We don't see cyclicality in the end markets owned by Atkore. On the contrary, we see the types of the strength of the combination, we can drive further growth through the combined perimeter. Data center, as mentioned, activity in Atkore is not as intense as in Prysmian because they probably missed the first wave of opportunity, but the combination of the two perimeter will give us a chance to align our share of wallet in data center to Prysmian and boost additional revenue there. The margins, we think has had a similar situation to that of Encore. We bought the company at the bottom of the normalization. We think that also here we are at the bottom of the price of normalization. In fact, as I said, in what? two and three 2027, they already 2026. They're seeing margin accretion, becoming solid and more evident in their business. I think the margin will benefit from the additional synergies in terms of EBITDA enhancement. The synergies are, I would say that are more or less evenly split between the three years. Commercially, we will gain faster leadership, we will gain faster traction in the market. For the operational, some are more short-term, some are more mid, long-term. You can probably consider evenly the $150 million spread over the next three years, 2027 through 2029. Thank you very much, Matthew. Thank you, Monica. You're welcome. Thank you. We will now take a next question from the line of Chris Leonard from UBS. Please go ahead. Yeah. Hello, guys. Maybe two from me. The first is on Atkore. I think I've read recently from one of their transcripts, they were seeing a 3x increase for product intensity inside the data center versus the typical sort of warehouse fit-out. Could you just comment on what's driving this? Do you think there's opportunities for you to expand level as you bundle the offers together with your, the land cable business? The second question would be on the synergies at the moment that you're targeting, perhaps could you, as you drew comparisons to Encore Wire, could you maybe give us a feeling for how the progression is going with Encore Wire actually in terms of the targeted synergies you looked for of about $140 million within 4 years, and how you're seeing that shape up across the commercial and operational synergies you're looking to capture? Thanks. Yeah. I think the data center and the sales opportunity already mentioned, there is this packaging opportunity which combining using the same agents, cables, portfolio with the installation components, you either win business that you would not have won on a standalone individually basis, or you have more power in pricing also thanks to the best service provided by Encore. The packaging of components and cables is basically the stronger driver of the rationale of the acquisition. You sell a complete package as a one-stop-shop solution to distributors who like to buy from one single shop all the stuff for EPCs, data center, other infrastructure developer in the non-residential space. The synergies compared to Encore Wire service pretty similar. In terms of the $140 million synergy of Encore, we are pretty much done with $110 million synergies. The one that are remaining are the one associated to the rod mill investment that we haven't achieved already in terms of implementation. It will be happening around 2027, 2028, and early 2029, the completion of the rod mill investment. At that point, the level of synergies mentioned at the Encore acquisition will be fully met. Thank you, Massimiliano. Just to follow up, was there any view Atkore in terms of capacity expansions or anything you need to do there to further capture more data center growth, or are you leaving the business as it is? From what we've seen, there is enough capacity across the different end markets Atkore play a role in, and we will assess any way the opportunity for additional capacity should we find that there is a shortage, a bottleneck in the output of the factories. From what we've seen in due diligence, we should be good to go with additional volume without adding capacity. Brilliant. Thank you. You're welcome, Chris. Thank you. We will now take the next question from the line of Alessandro Tortora from Mediobanca. Please go ahead. Yes, hi. Good morning. I have two questions- Good morning if I may. Yes. The first one is if you can, let's say, elaborate a little bit more on, let's say, the cash conversion side and what's your expectation, let's say, considering now the deeper profitability that Atkore had. I see in their last presentation that they mention, let's say, a very limited amount of CapEx per year. I don't know exactly, let's say, which kind of working capital intensity this business has, and if you see, for instance, opportunity also to optimize bundling together this kind of level of working capital intensity. This is the first question. The second question relates again to, let's say, the mid-cycle profitability for this business. As you recall before, you mentioned Encore Wire as a kind of reference now also to this transaction. Which kind, let's say, of level do you see as a sort of sustainable level, also considering the synergies you mentioned, also considering the cost and efficiency the company had in the past? It seems that maybe this company can have, let's say, a level which is probably much more in the high teens space instead of the mid-teens profitability the company is having today. Thanks. I'll try to answer, Alessandro, first of all, the second question. I'd like to make an analogy to Encore Wire. Encore Wire we acquired 14%-15% EBITDA margin, which was basically the margin they had prior to the cycle, the post cycle. In 2019, 2020, 14% was the margin in Encore Wire cable division. They grew through the spike up to 30%-32%, and then normalized at 14%. We added more margin after the acquisition, thanks to the synergies. In Atkore, the level of margin up to date, 14%, is slightly lower than what they had pre-spike. In 2019, 2020, their margin was as high as 17%-18%. The reason for this gap, I think, lies with the lack of efficiency in the perimeter post the pandemic and post the market development the last 3 years. I think that we should be able to restore, as happened with Encore, the same margins that Atkore had prior to the spike of 2021, 2022. Then of course, part of this will come through the synergies, part through the additional efficiency, part to more disciplined cost control and unfortunately part due to the different market because now we sit in a different market with the more driver growth or stronger driver growth and more demand in the electrification space. Long term, I think we should be looking at something beyond 14%-15%-16% EBITDA margin. Back to the conversion site, I'd like to make only one comment on the CapEx. The CapEx are limited within the range of $80 million-$90 million per year. The level of CapEx that we look to maintain in the coming 3-4 years, excluding some extra CapEx or restructuring costs for the operational synergies and so on. I'd like to have Francesco complement the answer with regards to the working capital trend and the best estimate of the cash conversion. No, the profile of working capital is not materially different from Prysmian. Of course, I refer to Prysmian excluding the transmission business, which is a totally different working capital profile. The growth pattern of Atkore and the combined entity will not mean any particular cash absorption coming from working capital growth. Then, as you know, I believe that our Prysmian Group is particularly effective and efficient in managing working capital. I'm sure that this will be an area of further investigation, of further improvement, and we'll be able to further optimize the working capital profile of Atkore. Okay. Thanks for this. Sorry, just as a follow-up. Firstly, on the, let's say, US GAAP accounting, should we expect some relevant changes? We can consider the numbers of Atkore as something pretty similar, okay, moving to our accounting principle. Then, do you have a forecast for the integration cost? Thanks. I take the one on the US GAAP. The US GAAP has no huge differences. Having said this, there is one not insignificant impact, which is a positive, once it will be converted from US GAAP into IFRS, which is quite normal with a U.S. company, was there also in Atkore, but in this case is more material, and it is the leasing accounting. The application of the leasing accounting and IFRS. They lease and rent quite a number of sites, so the application of IFRS will result into a not insignificant improvement. I can't even mention the amount. I would say north of $30 million impact of improvement. Okay. Yeah. The site integration cost would be in the range of $45 million-$50 million. They come in three years, Alessandro. Mm-hmm. Okay. Thanks. You're welcome. Welcome. Thank you. We will now take the next question from the line of Alessandro Cecchini from Equita. Please go ahead. Hello, can you hear me? Very well. Yes. Yeah. Thank you. Thank you for taking my questions. The first one is a follow-up on the cost synergies. You mentioned that the business of cable of Atkore could be improved, and probably has margins that are below your average margins in low voltage. So I would like to understand your feeling, which are the reasons why this part of the business is probably not so performing? And secondly, if I understood correctly that the insourcing of the production of these cables in your manufacturing is included or not in the $150 million of synergies. So just to understand if it could be on top of this. This is my first question. The second one is instead about the financing. Just your feeling about the cost of debt that you expect to finance the deal, of course, excluding the hybrid. Then if you confirm me that in your calculations, basically, the hybrid bond financial expenses are not included in the adjusted EPS calculation as the Prysmian standard. Thank you. Hey, Alessandro. I answer this first one and two questions. I didn't mention, and maybe I was misunderstood, that the cable business in Atkore has lower margin than Prysmian. All I mentioned is what the second part of your question, so that we would think that we could combine the production of cables of Atkore with the Atkore cables so that we create a larger scale, a more efficient production base for this portion of the business. It is around $400 million revenues in cable. It's not a major part of the business, as we mentioned. The benefit of this consolidation, we will not be able to fully quantify it, they are partly included, the $150 million partly will be on top. If you don't mind, I'd like Francesco to step in for the final question on the financing cost. Thank you, Massimo, and thank you, Alessandro, for the question. Let me say the blended cost of the debt, including both the hybrid and the non-hybrid debt, will be below 4%. Of course, higher on the hybrid debt and significantly lower than this on the senior debt. As you can imagine, there is a structured acquisition financing in place, and this acquisition financing for the debt component will be taken out through the issuance of capital market instruments, including hybrid debt, and also will be taken out through the, let me say, cash flow and other lines, other committed and uncommitted lines of Prysmian. There is also, let me say, a part in this acquisition financing of bank financing. I have to say it's a very efficient and very cost-effective financing structure. Actually, I have to correct your assumption because hybrid expenses are not part of the net income, are excluded from the net income, but are taken into the calculation of the EPS because are part of the comprehensive income. To be very clear, the EPS calculation, our accretion, which is, as we said, high single digit from year one, excluding synergies, and double digit once synergies are achieved, take into account the cost of the hybrid, the interest expense of this hybrid. Okay. It's very clear. The last one on the, you said about that the vast majority of the business, of course, is U.S. About the international business, you can add more color, what is your view of this business? What is your strategy? Just to understand, excluding the U.S. business, what is your strategy, what is your feeling about the business? Thank you. Yeah. Thank you, Alessandro. The strategy is pretty much the same in the other areas where they have a presence at U.S., we also have a strong leadership in industrial construction. The combination of our cable industrial construction business with Atkore will give us additional opportunity to add the revenues and grow share wallet in those countries. It's a nicely overlapped perimeter between cable and components for installation, both in U.S. and outside U.S. Okay. Many thanks. Thank you. You're welcome. Welcome. Thank you. We will now take our next question from the line of Daniela Costa from Goldman Sachs. Please go ahead. Hi. Good morning. Thank you for taking my question. Sorry if this has been asked before, had a little bit of trouble with the line. When we, let's say, we fast-forward five years, can you talk about how much you envisage your business to be cables versus non-cables, given you're now moving sort of into adjacent areas, and then after today, how much firepower or in management capacity do you think you have to continue to pivot away more to adjacent areas? Daniela, you mean as global Prysmian, how much is cables, how much in the last five years, how much is cable, how much is non-cables? No, going forward. Going forward, when you think about the portfolio. Okay how you want it to be. Yeah. We still have a opportunity to do similar deals to Atkore in other areas of the world where we can combine components for installation to our industrial construction business. We have a further addition to solution provider goal in the digital solution space. There is probably a different consideration to be made here now, given our high level of leadership in many of the cable spaces in different geographies, the best opportunity to grow and also to enhance margin will be exactly the one that we perform now with Atkore, to add additional components. This is where we're going to focus for the next acquisition. Do you have a vision of the group being half-half, or is it still you think, like in 2030 will still be mainly cables and this will be a small adjacent? In reality, it is not probably the right way to say cables and against the components. We call this KPI solution provider KPI. In 2028, we were supposed to achieve 55% of total revenue that were made of solutions, so where we can bundle and package the cables with the components. Now after the Atkore acquisition, that 55% will certainly grow to beyond 60%. I think we have an internal view or ambition, to bring this number as high as possible. Probably the 75% range is within reach in the next three, four years if we continue pursuing similar type of acquisitions. It's not that relevant whether it is only cable, whether it's component, but whether we can sell the two together is where you gain share wallet and processor, enhancement of margins. This KPI is the right one to track. At the next Capital Market Day in quarter one, quarter two next year, we'll be certainly more explicit about how far we can go with this solution provider journey. Got it. Thank you. Thank you, Daniela. Thank you. We will now take the next question from the line of Akash Gupta from JP Morgan. Please go ahead. Yes. Hi, good morning. Maybe a question on geographic split within U.S. You have Atkore, which has their headquarters in Texas and entire manufacturing located in that state in Southern U.S. Atkore, I don't know much about their manufacturing and distribution footprint, but their headquarter is in Illinois, which is on the north side of the border. When we look at geographic footprint of Atkore and your Prysmian Inc footprint, in both on manufacturing and revenue point of view, can you talk about it and is there any synergy in terms of they are being particularly strong in one part of the U.S. where you are less so, and vice versa? That's the first one. Yeah, thank you. Very interesting perspective. They have 30 manufacturing and distribution center sites in U.S., and Prysmian has also 30 sites in U.S. We are much more concentrated on the east side of U.S. as Prysmian. They are also well overlapped with us on the east side, but they are more spread on the west side and the center. There's definitely opportunity for synergies where there is overlap. More or less all our 30 sites have within a certain range other site from Atkore. There's also the benefit of having access to a part of the market that for Atkore was not simple to have access to, the central part of the U.S. and the western part of the U.S., where they have good manufacturing and distribution presence. The overlap and the spread out footprint they have is also value that this acquisition will bring to us. Thank you. My follow-up is on balance sheet. I think when you acquired, in previous deals, you mentioned how long you need to delever before you come back in market again for M&A. Any early thoughts on Atkore? I think you're going to close the deal by end of the year, how soon can you come back in the market for, let's say, billion or more size of M&A? I think, Akash, we have more power than $4 billion acquisition already as we speak. We are recognized to have almost a $10 billion power acquisition by using treasury shares and the equity increase and debt. Technically, we're already available, and we are already considering other opportunities in the coming years. We don't need to pursue any specific deleverage to continue expanding our perimeter with inorganic moves. Thank you, Massimo. Thank you, Akash. Thank you. We will now take our next question from the line of Jonathan Mounsey from BNP Paribas. Please go ahead. Hi. Thank you. Good morning. Thanks for fitting me in. First one, just was this a competitive process or were you the sole bidder? Secondly, just some clarification. I listened with interest to the way the deal will be structured from a financing point of view. Just wanted to clarify. It sounded to me, if we break it down, 60% vanilla debt, the other 40% is 20% pure equity, 20% hybrid. I guess from a rating agency point of view, that would be 30% equity. Have I understood that right? Then on the nature of the hybrid, you've used the term, I think, throughout, but do we actually just mean a convertible? Is that what we're going for rather than other flavors? Then finally, in terms of the financial leverage we land on, taking all that into account, where do we see net debt to EBITDA as we enter 2027? Thank you. Okay. Yes, the process was a competitive process. I'd like to hand over to Francesco for the two other questions. Thank you, Massimo. Yes, your understanding was correct, Jonathan. 20%, of course, is 20% plus minus. I don't take this number at face value, but is pure equity. Pure equity may come from disposal of treasury shares, for instance, or from the issuance of new shares under our pre-approved 10% capital increase authorization. This 20%, if you do the math on the EV, is around, I would say, even less than 2% of our capital, of our market cap. 20% is a hybrid and not a convertible. They are completely different things. Right. It's a hybrid, just to be clear, very similar in terms of features to our outstanding hybrids of $750 million. We have already an outstanding hybrid. It will be a very similar one. Great. In terms of financial leverage, remember that under IFRS, the hybrid is treated as equity, not 50%, but 100%. This is the assumption, and this financing mix is the assumption for the 1.4 times of net debt on EBITDA end of 2026 that Massimo mentioned during the presentation, which is a very low leverage, and this, of course, will drop further in 2027. Let me say around one, maybe one time, something like this. Clear. Thank you. Welcome. Thank you. Thank you. There are no further questions at this time. I would now like to turn the conference back to Massimo Battaini for closing remarks. Thank you very much for your time today and for joining this call. There will be more to come in the coming weeks. I hope you will take a good break. See you soon. This concludes today's conference call. Thank you for participating. You may now disconnect.