Ascopiave Aktie

Good morning. This is Chorus Call. Welcome to the presentation of the results -- financial results as of 30 September 2026 for Ascopiave. [Operator Instructions]

Now I would like to ask Dr. Fae, the Chief Executive Officer, to make a presentation. Thank you.

Thank you, everyone, for being present here today. We will illustrate the results of the first 9 months of Ascopiave Group. I would like now -- Dr. Fae, who will illustrate to you the figures and the results for the first 9 months.

Good morning, everyone. Thanks for participating. Let me start with how the performance has been, in Slide #2, as of 30 September 2026. There hasn't been many changes relating to the scope of consolidation relating to 30 June. The renewable energy section on the left side, you can see the results, while the central part is for the core business regarding the distribution. And the Reti part of our company is the last one that has entered the scope of consolidation. And at the middle of -- half of this month, it will enter the scope of consolidation. On the right side, you can see the companies with minority interest like Cogeide, Herabit and Acinque, where we have 5% stake.

If we go to Slide #3, change in the consolidation scope and participation disposals. In 2026, there can be a higher degree of comparison. The first is the change in the scope of consolidation. As you can see, there have been extraordinary results compared to 31st December 2025, as you can see on the right side of the slide.

The perimeter of change in the consolidation hasn't been different from what there has been in the past compared to the 1st of July 2025. The acquisition of 31st December 2025, the company was merged into AP Reti Gas from 1st June 2026 and the accounting and tax effect took place from the 1st of January 2026. And it entered AP Reti Gas North. And AP Reti Padova from the 31st of March 2026 and effective as of 1st April 2026, the merger into AP Reti Gas was approved -- will be approved with effect from the 1st of December 2026.

The participation disposals, which haven't interested much of the 1st of December 2026, as it affected June and it affected the year 2025 with the sale of 25% of the share capital of EstEnergy has been recorded here as of the 24th of June 2025. The sale of 3% of the share capital of Hera Comm has been recorded as of 8th October 2025. The first half of 2025 income statement includes financial income relating to the distribution of dividends by the 2 disposed participations.

I have to assume that in the following slides, I'm going to give you information about all the figures that have played a very important part in our results. In the gas distribution, and in the renewable energies, relating to number of gas distribution users, in particular, in the distribution sectors, you will find the number of users as of 30th September. On a like-to-like basis, they have remained more or less equal and the change in the perimeter has led to a change of 130,000, which means 1.5 million and plus 9.9%. The increase in the number of gas distribution users has been almost 10%.

And in terms of cubic meters, it has been plus 51%. And we moved to 1,574 million. Relating to renewable sources in terms of megawatt hour. So the plants have maintained their manufacturing efficiency. Electric power compared to 2025 has increased by 33% which is slightly less than 48 gigawatts. So this difference can be attributed mostly to the hydroelectric power and also to wind power. It has been hampered by the negative impact of the vagaries of the weather, very, very little rainfall in 2026.

If you go to Slide 5, you can see the first 9 months of 2026. We've had the total volume of gas distribution revenues, EUR 178,709,000. And in the same period, it was EUR 132,228,000. The difference in revenues relating to renewable sources. It has been EUR 3.5 million. In first 9 months, it is EUR 13.8 million. Here, I have to state that revenues from efficiency certificates there has been a difference, a valuation of over half the total number and the margin on energy efficiency certificates has contributed little to the group.

So EBITDA, this is very important. In the first 9 months of 2026, it has been EUR 116 million, substantially in line with the first 9 months of 2025. On the right-hand side of the slide, the reported value in the unaltered perimeter would have been lower than EUR 33 million because of all the factors that I've mentioned. The report of the first 9 months of 2026 has had an effect of capital gains on sales of EstEnergy of EUR 26 million.

The same EBIT has had a drop from EUR 71 million to EUR 56 million, which means less EUR 26 million (sic) [ EUR 16 million ]. EBT just has taken the profit before tax, earnings before tax, it has been EUR 41.5 million. In the first 9 months of 2025, it was EUR 87,725,000, with a negative difference of EUR 46 million, which because of the extra extraordinary amount stated of EstEnergy, there has been a positive contribution just mentioned attributed to EstEnergy and Hera Comm of just over EUR 25 million. This can be acknowledged in the cost of interest from EUR 11.6 million in 2026 to EUR 16.5 million in the first 9 months of 2026. It is clear that here we have to pay because of the rise in interest rates.

In Slide 7, you can see -- in number 6 and 7, you can see the first bridge, which gives a graphic representation of the performance in the first 9 months which highlights the extraordinary items, AP can be attributed to the new perimeter of consolidation, which is EUR 6 million because of the one-off tariff adjustments, EUR 8.6 million negative compared for cash reserves, it was EUR 26.2 million in the year 2025. And then some elements not particularly significant, which can quantify the values in 2026 have been EUR 116 million. The same can be said for Slide #7, the evolution of EBIT in the first 9 months of 2026, with the only difference being that -- the difference can be attributed to depreciation and amortization.

In Slide #8 of the KPI -- financial KPI, key performance indicators. In the top portion of the reported slides, there have been -- the first part is reported and the second part is adjusted, so you can see it. The adjusted portion relate in 2025 to the gas distribution, new scope of consolidation, which referred to 2024 period attributable to EstEnergy for EUR 26.4 million and EUR 2 million for the cost of energy and for what Ascopiave has been selling in the extraordinary nonrecurring items in 2026. It was EUR 2.6 million for the cessation of the employment relationship with Dr. Nicola Cecconato. Here, we have the possibility of appreciating in the adjusted portion in the portion below on Slide 8.

But in the reported, it was EUR 116 million. In adjusted, it is EUR 118 million. In the reported in the first 9 months of 2025, it was equal to EUR 115 million. The adjusted in the part that has been recorded on the right side of the slide. In the first 9 months of 2026 has been EUR 82.5 million on the evolved perimeter compared to the previous year and net of extraordinary components, there has been an EBIT growth of EUR 36 million, which means 43.7%. The same effect can be seen in which is EUR 38 million adjusted. From EUR 38 million adjusted, it has moved to EUR 58 million, which means 51.3%. Here too, we have had the possibility of seeing the composition of EBIT in the components referred to the gas distribution -- in the first perimeter of gas distribution, in the renewable sectors and also with its negative. So this highlights -- the stable highlights also on the negative side, likewise.

Slide #9, the operating costs. Here too, with the same dynamics, that is to say, on the upper portion, raw materials, consumables, supplies and goods and on the lower portion, which is adjusted. I think it is important to make a comparison net of extraordinary items. If we go and check the dimension of the evolutions which can be conducted in the first 9 months, attributable in the first 9 months, you will appreciate how this operating costs have mostly been -- have had a decrease of -- due to -- have had a decrease due to the high efficiency procedures, which have been employed by the group, starting with the first 9 months of 2024. So much so the value, which has been slightly less than EUR 58 million. Its incidence on the revenues has been 25.8%, which means we have recovered 2 percentage points.

As I said just before, these are the efficiencies and economies of scale that the company has been -- Slide #10, which highlights the dimension of -- between reported and adjusted on the left side of the slide. On the right side, you can see the components of the new areas of consolidation in terms of -- in terms -- in global terms, you can see EUR 9 million in the first 9 months of 2024 (sic) [ 2026 ], it has passed from EUR 60 million to EUR 66 million. The most important part of investments, if you think about it, has gone on the business unit of distribution from EUR 41.6 million to EUR 56 million. We have had investments of EUR 7.5 million also in the renewable portion and EUR 5.6 million in other assets -- in other investments from material and even tangible and intangible assets.

In the Slide #11, if you see the balance sheet of the company in 2026 compared to the same period the previous year. On the right side, you can see the figures compared to 31 December 2025. There haven't been any significant changes that I have to report in the sense that the main components have always been tangible concessions for EUR 5.4 million, which are quite in line with the previous year with figures have been quite the same. So as of 30 September 2026, you can see the results. For 30 September 2026 the capital is above [indiscernible] has been the cost and the net financial position, net working capital has moved from September 2025 to 2026 has moved from EUR 630 million to EUR 754 million (sic) [ EUR 654 million ].

In Slide #12, you can see the classic evolution net financial position and cash flow. From September 2025 to September 2026, EUR 42 million, there's been an increase of 6.9%. The distribution part of dividends, the acquisitions in stakes, which have had -- which have been recorded for EUR 33 million. The financial balance, the autonomous capacity, the cash flow of the company in the first 9 months of 2026 have been EUR 85 million, which has been above of the -- component of investments, and they have had an impact of EUR 70 million. This new capacity for company to consolidate has been highlighted in Slide #13, which highlights the dynamics between reported and EBITDA the period every 3 months of 2026, every 3 months of 2025, the upper portion of the slide. On the lower portion of the slide, there have been the accumulated value.

On Slide 14, you can see the comparison between the 2 years' adjusted cash flows generated through self-financing, where the figures are EBITDA, net financial income, dividends, income taxes, self-financing cash flow, for the average monthly self-financing cash flow, investments, cash flow and average monthly cash flow. This is the year-to-date data, which shows that the company has reached the average monthly cash flow in balance with the first 9 months of 2025. Another element of interest is self-financing amount in accumulated terms and the accumulated component from month-to-month. The average of self-financing in the lower part of the slide, the self-financing has been EUR 8.9 million on the month. In the first 6 months of 2026, EUR 10.6 million has been a growth in the first 9 months of 2026 month-to-month, it has been almost EUR 11 million. This is quite satisfactory for us because the self-financing cash flow has had a constant increase and depreciation and amortization have also been helped because of this.

I would like to finish the presentation by giving you the structure of the debt, the financial debt, to show you the long term of the financial borrowings, the current position of long-term financial borrowings. The net financial position has increased of EUR 599 million to EUR 655 million in the 9 months of 2026. So we have re-modulated the structure of the debt relating to the expiry of the debt and also taking the debt to a higher degree of guarantee, so that we don't have to depend on the vagaries of the interest rates. So the 40% of the component of the fixed part has been -- from 40%, it has been taken to 50%.

I would like to close down by the average cost of debt -- average cost of debt policy that has been adopted by the company for protecting its debt, which has been despite the increase in taxes in the first 9 months of 2026, the average cost of debt has been 3.15%. In the 9 months of 2025, it was 3.11%. And in the 12 months of 2025, it was more or less the same at 3.11%.

Thank you for the attention. If you have any -- the Q&A session is going to start now. If you have any question, please do it.

[Operator Instructions] The first question is from Alessandro from Mediobanca.

I have 2 questions. The regulatory system from the publication of the first consultation of ROSS with ARERA. Can you give us some details about what direction this policy has been taking? If you expect something new, any update from ARERA? This is the first question.

The second question is the government has increased IRAP on companies. It should have been EUR 1.7 million for you IRAP. Since it has increased by 5% in 2026. So do you think is it proportional to the cost of managing the company, in operating costs? The third question is cut in the regulatory operations relating to bids. How is the situation for Ascopiave?

So I'm going to answer the second and the third question for you. The first question will be answered by Mr. Bignucolo.

So relating to IRAP. We have taken the first indications which the government has given. The first simulations that we have done of the extraordinary component on the time packs. We expect a linear growth from 1.7% to -- so 1.7% is the figure that we would like to confirm. Which would give us a growth of -- an overall growth for the company of 5%.

Relating to the WACC, the weighted average cost, the first indications objectively. I think the bids are going to close now and 30 basis points is the WACC, which we think. On the regulatory part, ARERA is going to decide. Dr. Bignucolo is going to give you more figures. We have studied the figures. And it's quite a long document. I'm going to give you all the information now. So I'm going to tell you the impact on the tariff rate. So we are going to see how to obtain in the gas distribution, the introduction of mechanisms which should be balanced on the needs of the companies operating in the electricity and gas sector. So this would interest only the main players in the sector.

As we said, 2 of the companies -- we are quite interested in 2 of the main elements which have been mentioned in the new regulation. As you know, 2 main functions have been figured, ROSS-based, simplified which mainly focuses on the tariffs, the costs and not much should change based on what the company has got to pay on how much the company has been charged in future years. So not much has changed.

As you must have seen, there are going to be new valuation benchmarks, but we think -- since you think what your view is, we have already submitted our views, our observations. And I'm sure that whatever we have submitted is more or less the views also of other companies. The simplified ROSS is the base that we actually take into consideration when we make our forecast. Also thinking about the lesser impact we have on our operating costs, the better it will be for us to have better results. So what we want -- actually want to do is not to create an imbalance in our operating costs and income.

These valuations have been submitted to the authority. And the authority has told us that the main objective of the authority is to keep a balance in all the mechanisms and which are valid for all the companies and not in favor of just one company. So the ROSS-based mechanism is based on the cost of capital on RAB, which is not something which is -- takes into consideration only the bottom line, but the entire financial statements, the entire table of income and expenditure of the company.

So this creates a scenario -- a completely different scenario, which the authority has already taken into consideration, even though we have submitted our own observations. Something that we have highlighted to the authority is a complete view of what we think about a ROSS-based from our, Ascopiave viewpoint. So this is something that we would like to ask the authority as to exactly what they think, what are their final views on what they have submitted to the market as a legislation.

So having said this, this solution, the first solution is something that they have made the first evaluation, which they have done from the administrative point of view. So we think we can share the evaluation. So of course, we have got to see we have examined the details. So our operating costs should be okay for -- so for what we are going to face with the new legislation. So we have been very, very careful with our operating costs.

Since the valuation has been done at a sectorial level, so we know how it is in the electrical sector. Substantially with the baseline, so there are going to be additional costs. After that, there will be some additional benefits that will be acknowledged to the company. And then there will also be a price gap. So to cut short, it is not so easy to understand what exactly the outcome is going to be.

So there will surely be a contraction on the tariff levels in efficiency. But the tariff mechanism envisages gives the possibility in part to withhold the costs -- to reduce costs, but we are going to have a second round of consultation to see exactly what can happen. You know that the temporal -- the time horizon for this is sometimes very, very short. And within this time frame, we've got to work. I've been very long. Thank you.

The next question is from Roberto Letizia, Equita.

I would like to know the debt performance. How the debt is going? You have given quite a detailed account of how the debt is going. Compared to an increase of 1%. You had EUR 150 million debt to be refinanced. So how do you expect to do it? So the old debt, which has 200 basis points which has been quite a good result. So we have also the IRAP. So between financial expenditures, I would like to ask you how -- what impact can there be on your debt scenario?

And also the hydro performance. Also because October has also been quite weak compared to the rainfall, to the vagaries of the weather. So relating to the -- from the commodity viewpoint, so how is the performance between your income and expenditure? Is there a wide gap? I would also like to know something about the bids.

So relating to your questions, relating to the hydroelectric component. So also for the last quarter, we don't expect much. The month of October hasn't been very interesting from the viewpoint -- hydroelectric viewpoint. The dimension of the plant, hydroelectric plant is the same. In our balance sheet closing at the end of the year, we have forecasted figures also for the last quarter of 2026. We have been protecting our performance. And we think that anyway, we are going to be in the black, in the sense that the -- there will be -- our charges will be EUR 40 per kilowatt hour, which is quite good in ensuring a profit.

Relating to the bids, there's been a sort of a slowdown in some bids within the end of the year, in the sense that we were interested -- win in a bid in Pordenone. But there has been a suit or court case that was filed. So there has been some restrictions. So the client has had to delay the bid because one of the bidders filed a court case. And there has been another one on [indiscernible]. Our logic has been very, very selective in participating in bids.

We have 3 main factors. One is at least 50% of PDRs. And then we think also of clusters, of the amount of clusters that we can have.

So we have some bids only in ATEMs of our interest. This doesn't mean we are not going to bid in other places, in other towns. It doesn't mean we are not going to be there, but we are very, very careful about the economic factors.

Relating to debt. Dr. Paggiaro, the CFO, is going to talk about it. Relating to refinancing relating to 2027. So the logic is if there is a value of EUR 150 million, which Dr. Paggiaro and myself have been studying. So we can confirm to you that in this EUR 175 million of debt, which is going to expire in the last semester of 2026, the amount, which was EUR 175 million with delivery -- with expiry 1st July 2026. We have already refinanced already EUR 100 million of this debt.

So in one way or the other because -- first also because it was convenient for us to do it and then also was the opportunity. So we have -- we still as a sort of -- under the impact of the increase in tax rates, which has been happening everywhere. There has been the spread, which is 70 basis points despite that, we have been faring very well, which is giving us quite a lot of confidence. So despite this, we are quite satisfied with our performance. The worst-case scenario for us is 5.4%. So we think there's going to be a percentage which is lower, which Dr. Paggiaro is going to say now.

So what I could say is that we are going to have an opportunity to offset the amount of higher charges that we have had. The IRAP also that we have been paying has been offset with the higher revenues that the company has been gaining. So in the current assets, this is what we are going to have. The cost of electric energy of gas has been a negative factor for us. But despite this, it has been -- we have been faring quite well. So in 2026, the expansion of the perimeter also has had -- also has been a factor which is very [indiscernible].

The next question is from Emanuele Oggioni.

I have a question on strategy and on business plan. Business plan of -- so can you give us some precise figures and not just an overall performance? So also relating to the clawback and also relating to the next 3 months, which are going to finish. So what do you think is going to happen in the next 3 months?

Since we entered with Dr. Fae, both of us have identified 2 or 3 strategies, which we are going to focus on all the opportunities that we have had to simplify the -- first of all, we want to check the structure of the company to see how things are going to work. We have been doing a lot of simulations. So for example, in various towns which are outside the perimeter, which we are going to bring back to the market. So whenever we want, whenever we have an opportunity in our -- in the opportunities to bid, we study it carefully and try to see what we can bring home, so to say, the profits that we can have, in particular, in the minority stakes that we have had in companies. There have been logic which may be in the past, which surely maybe could have been justified in the past, but not now. This is not something that we can do now. Since we are inside -- as long as we are inside the benchmarks that the banks can -- banks tell us -- as long as the banks tell us it's okay, then we are sure that we'll be doing a good job.

So in 2027, we are going to take part in deals, which surely help us to keep up a good performance and also being selective in what we do. And we also see what the efficiency will be for our company and not just participating in bids for the sake of doing it. And we have also been doing reasoning on the integration of what our business lines can be, which is quite obvious that this is something that we have to keep in mind every time we take an initiative, each time we invest. So it's quite obvious that we look at the world in general to see wherever we can find synergies, we can take part in the bids.

So you can imagine this is a sector which you have been following, which you know quite as good as well as we do, relating to networks, gas distribution and so on. In hydro plants, rationalization and so on. The wind farms, the photovoltaic plants, we have a portfolio which is all said and done. It's quite good. It's quite rich. So our objective is to make it as much as efficient as possible.

The next question is from Davide Candela, Intesa Sanpaolo.

I have a follow-up with what you have been saying. So I think I've understood that you're speaking about the rationalization of the portfolio and maybe you want to grow. Relating to debt, you want to take part in the debt tenders. But at the same time, you want to be extremely prudent even though you're looking at M&A situation. And even though have room to grow, but we will always look at the efficiency and the cost factor before taking any decision and also at the annual growth. Can you give us more details relating to this policy? So for example, the decisions that you have been taking, is it only for this quarter? Or do you think it can grow also for the other quarters?

The first question, obviously, relating to our rationalization, relating to the general movements. We are always full of requests, proposals, which we obviously study with -- very, very carefully. From another viewpoint, I have also got to say that in this precise moment, our main objective is exactly -- to see exactly how things is to rationalize. We know that it is true to elaborate. As your colleague said, that the leverage you make has a cost. So from this viewpoint, there will be a leverage, but our main objective is to bring home excellent results.

We also want to be sure to give the company a balance -- a very, very healthy balance, just to be very, very simple. So also because we have got to divide -- we've got to distribute our dividends, think of passive interest. For example, when we have 100 basis points, they weigh a lot on our performance. So we have got to be very, very careful not to hamper our profitability. And also relating to our gas performance to say that it is healthy. So we are in a market where every day we receive proposals. We have more proposals than days and disposals to examine them.

The base of everything is to be selective. So it's not just a couple of acquisitions where we become. So what our best thing is to be good at what we are doing. Dr. Fae is going to talk to you about the other subject.

So relating to the dynamics of the operating costs. We are not speaking about nuclear science and just speaking about integration mergers from -- between companies that were done starting from the year before. So just for example, taking into consideration net profit of EUR 1.5 million, our main objective now also is to pay our dividends, obviously, to keep our employees happy to take care of our human resources and to and to see that the cost of the energy and power that we sell is not high for our users. So we would like to know that even if we have had higher costs, we would like to know that in the course of 1 year, we hope that whatever the cost -- high cost we have obtained, we hope we can reduce them.

Also relating to we would like to decommission some PDRs and we hope we can manage them -- whatever we have left, we hope we can manage them well. So also with economies of scale. So either we are going to increase our PDRs without looking at the costs or we are going to decommission some PDR and focus on the PDR that give us a greater profit. So going in this direction, the drivers that we have been having, we would like to -- by 1 percentage point that the costs that we have been having. And so we hope that it can be possible. We also keep looking at other companies.

So we are the second operator relating to distribution. The first one is [indiscernible] bigger than us. So more PDRs, more investments. So also looking around. So we see the realities around every day, even coming to office every -- and so our main factors are to have a look -- to transform to see whatever look -- we see around to see how we can make our company better. As relating to M&A, if there is a slowdown. In all -- in whatever we see, we are not going to just wait for merger opportunities to arrive, but we will try to make the best of what we have.

The next question is from Equita, Roberto Letizia.

If 100% is OpEx base, how much can it rise?

So relating to objective of OpEx, the answer is 50%.

[Operator Instructions] There are no further questions. Thank you very much for the presentation. Thank you very much for participating in our presentation. Thank you. See you soon. Thank you. The chorus call here. The conference is over. Thank you. You can disconnect your devices.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

Good afternoon. This is Chorus Call. Welcome to the financial results presentation of the financial results as of 31st December 2025. [Operator Instructions] And now the Chairman and Chief Executive Officer, Dr. Nicola Cecconato, is going to give his address.

Thank you. Welcome. I'll give you the consolidated results as of 31st December 2025 and the comparison with consolidated results as of 31st December 2024. The slide illustrates on Page 2, the group's corporate structure as of 31st December 2025. During 2025, the group completed a number of significant extraordinary transactions that changed the scope of its consolidated assets and equity investments held. On 9 May, 2025, Ascopiave acquired 9.8% of the share capital of Ascopiave becoming the sole shareholder.

In December 2024, Ascopiave exercised put option on 25% of the share capital of Estenergy and the transfer of the shares took place on June 24, 2025. On July 2025, the transaction for the acquisition from the A2A Group of 100% of AP Reti Gas North S.r.l., a newly formed company, and the transfer of certain business units previously owned by Unareti S.p.A. and LD Reti S.r.l. became effective. The company is active in the gas distribution business in the provinces of Bergamo, Brescia, Cremona, Lodi, and Pavia. On October 2025, Ascopiave S.p.A. transferred to Hera S.p.A. 3% stake its held in Hera Comm S.p.A.

On 22 November, 2025, the transaction for the acquisition from Sime Partecipazioni S.p.A. of 100% of the share capital of Societa Impianti Metano S.r.l. [indiscernible]. Active in the gas distribution business in 40 towns in Lombardy, Emilia-Romagna, Piedmont became effective. Changes in the consolidation perimeter and transfer of shareholdings. It should be noted that the company, AP RETI GAS has been consolidated on the 1st July 2025 and the consolidated economic results in 2025 refer to the second half of the year. On 24 June, 2025, the 25% stake in Estenergy was sold.

In the financial year 2024, the company's results were consolidated using the equity method until 30 September, 2024, the date of the earliest accounting close prior to the exercise of the put option on the shareholding. In the income statement as at 31st December 2025, dividends received from the company were recognized as financial income and the gain from the sale of equity investments was recognized as well.

On October 2025, the 3% stake in Hera Comm was sold. Consolidated income statement for the year 2025. In the 2025 financial year, the group realized revenues of EUR 244.3 million, achieving EBITDA of EUR 154.4 million and EBIT of EUR 92 million. The net balance of financial income and expenses was positive at EUR 11.3 million, an improvement of EUR 21.5 million compared to 2024.

This change is mainly explained by higher dividends paid by investee companies in particular by the dividend amounting to EUR 22 million distributed by Estenergy S.p.A. prior to the sale of shares. The portion of the result of companies consolidated using the equity method is negative and equal to minus EUR 0.3 million and refers to the results achieved by the subsidiary, Cogeide S.p.A. in the year 2024 net of the write-down made to adjust the investment to its recoverable value.

Compared to the previous year, the item shows a negative change of EUR 8.2 million in the 2024 income statement [indiscernible] realized by Estenergy Group with the recognized for the group share until 30 September, 2024. While there was no recognition in the 2025 financial year. Consolidated balance sheet as of 31 December, 2025 as compared to December 2024, the group has invested capital of EUR 1.247 billion invested in capital stock.

EUR 184.2 million in tangible fixed assets, EUR 1.017 billion intangible assets, EUR 66.5 million from the value minority interest has [indiscernible] EUR 22.3 million. [indiscernible] EUR 26.5 million from other fixed assets. Then there was negative balance of working capital items and provisions EUR 87.8 million.

The intangible fixed assets shown under asset equal EUR 1.317 billion, mainly consists of gas distribution networks and plants owned by the group, EUR 1.175.8 billion, of which EUR 247.8 million is attributable to AP Reti Gas North S.r.l. [indiscernible] Group and goodwill recognized following business combination. Property, plant and equipment consisting of real estate and the value of renewable energy productive plants.

It should be noted that during the fourth quarter of the 2024 financial year, Ascopiave S.p.A. exercised the put option in the remaining shares of the associate Estenergy S.p.A. and consequently from the 1 October, 2024, the revenue of equity investments recognized as of 31 September, 2024 was reclassified [indiscernible]. The sales was completed on 24 June, 2025.

Shareholders' equity as of 31 December, 2025 amounted to EUR 912.4 million, an increase of EUR 64.6 million compared to 31 December, 2024. The net financial position was EUR 614.2 million, an increase of EUR 226.6 million compared to the end of 2024. The debt-equity ratio is 0.67.

Operating data, gas and renewable energies distribution, as of 31 December, 2025, the group's distribution company has managed approximately 1.468 billion users, an increase 68% compared to 31 December, 2024 of which approximately 599,000 related to the company AP Reti Gas North [indiscernible] during 2025.

In 2025 financial [indiscernible] AP Reti Gas North into the scope of consolidation as of 1 July, 2025, we distributed 19 million cubic meters in the second half of 2025. The group has 29 hydro power, wind power plants with an installed capacity of 84.1 megawatts. In the 2025 financial year, electricity production amounted to 187.3 gigawatts, a decrease of 30.3 gigawatts, minus 14% compared to the same period of the previous financial year, the latter being characterized by significant rainfall.

Evolution of distribution, veritable [indiscernible] revenues and current revenues. Revenues EUR 244.3 million recording an increase of EUR 39.4 million determined by enlargement of the consolidation perimeter by EUR 48.9 million, increased of EUR 10.9 million in gas distribution tariff revenues, the decrease of EUR 5.5 million in revenues from the sale of electricity generated from renewable sources, the decrease of EUR 11.7 million in revenues from energy efficient certificate. The decrease in other revenues of EUR 3.2 million.

Gas distribution tariff revenues amounted to EUR 189.8 million and further increase of EUR 50.3 million compared to the previous year. [indiscernible] EUR 39.5 million with expansion of the consolidation perimeter on a like-for-like basis and EUR 10.9 million of which 8.6 million due to the revision of 2020-2024 tariff operating costs envisaged by ARERA Resolution 87/2025. Revenues from the products of energy from renewable sources amounted to EUR 22.6 million, decreased by EUR 5.5 million. Decrease is mainly explained by the lower volume of energy produced.

Operating profit, other operating expenses. Operating income amounted to EUR 92 million, showed an increase of EUR 40.3 million due to the enlargement of the scope of consolidation, EUR 13.9 million; increase of EUR 10.9 million in gas distribution tariff revenues, decrease in revenue from the sale of electricity generated from renewable sources, EUR 5.5 million. The decrease in amortization and depreciation, EUR 0.2 million, capital gains of EUR 26.4 million related to the sale of 25% stake in Estenergy, an increase in net operating expenses of EUR 5.5 million.

Net operating expenses EUR 84.6 million increased by EUR 20.5 million due to the change in falling revenue and cost items. Enlargement of the scope of consolidation EUR 15 million. Low concession fees two towns, EUR 1.4 million. Higher personnel costs, EUR 1.7 million; higher consulting costs, EUR 3.8 million, of which total EUR 2 million related to the acquisition of AP Reti Gas North. Low compensation to directors and statutory auditors, EUR 0.4 million. Lower gas meter reading costs, EUR 0.5 million. Higher non-recurring cist EUR 2.1 million. Other changes with a negative impact, EUR 0.2 million.

Number of Employes and personnel cost. As of 31 December, 2025, the group had 733 employees on the payroll, an increase of 238 compared to 31 December, 2024. This increase is mainly explained by the consolidation of AP Reti Gas North, which have 230 employees as of 31 December, 2025 and AP Reti Gas Next Grids with 17 employees.

The overall EUR 23.9 personnel cost increased by EUR 5.8 million driven by enlargement of consolidation perimeter of EUR 4.1 million, EUR 0.4 million increase in capitalized labor cost, EUR 2.1 million increase in current personnel cost mainly due to higher cost of incentive plans and ordinary salary increases during March, the contractual increases provided by national labor contracts and in part individual recognition.

Captain Expenditures. Investments in tangible and intangible assets realized during the year amounted to EUR 93.7 million increased by EUR 12.6 million. Investments made by the company in AP Reti Gas North consolidated 1 July, 2025 amount to EUR 4.3 million. Most of the technical investments on the like-for-like basis related to the [indiscernible] and modernization of gas distribution network and plants amounted to EUR 41.9 million, of which EUR 16.3 million in connections, EUR 22.5 million in network expansions [indiscernible] and EUR 2.1 million in reduction plans.

Investments in metering equipment amounted to EUR 11.9 million. Investment in the renewable energy sector amounted to EUR 21.1 million, mainly related to costs incurred for the maintenance and expansion of hydroelectric plant EUR 3.5 million, for the construction of photovoltaic plants EUR 7.2 million, and for the construction of other green energy plant EUR 10 million. Other investments amounted to EUR 6.5 million, related investments in land and buildings EUR 2.3 million; hardware and software EUR 2.7 million; company vehicles, EUR 0.9 million; and infrastructure, EUR 0.5 million.

Net financial position and cash flow. The net financial position, effective 31 December, 2025 EUR 614.2 million, an increase of EUR 226 million compared to 31 December, 2024. During the year, cash flow generated financial resources of EUR 97.9 million. Net investment in tangible and intangible assets resulted in cash outflows of EUR 93.8 million. Net working capital management generated resources of EUR 9.5 million. The group collected dividends of EUR 27.4 million from subsidiaries, not consolidated on a line-by-line basis.

Shareholders' equity resulted in cash outflows of EUR 32.5 million and the distribution of dividends to shareholders. Acquisition of [indiscernible] resulted in cash outflows of EUR 518.2 million of which EUR 456.8 million for the acquisition of the AP Reti Gas North and EUR 46 million for AP Reti Gas Next Grids. The sale of equity investment generated [indiscernible] of which EUR 204.1 million from the sale of equity investments in Estenergy and EUR 54.8 million from the sale Hera Comm.

The purchase of equity investments resulted in cash outflows of EUR 472.2 million. The realization of equity investments generated resources of EUR 234.1 million. Financial debt as of 31 December, 2025 amounted to EUR 577.1 million [indiscernible] 49% variable rate and the weighted average cost of debt in the year 3.11%.

Before [indiscernible] the Board of Directors of Ascopiave in consideration of the results of the year and the solidity of the group's equity and financial structure will propose at the Shareholders' Meeting, the distribution of a dividend of EUR 0.16 per share, for a total of EUR 34.6 million, an amount calculated on the basis of the shares in circulation and the closing date of the financial year. If approved at the shareholders' Meeting, the dividend will be paid in May 2026 with ex-dividend date on 08 May 2026.

I have finished the presentation, now the Q&A session is going to start. Thank you.

[Operator Instructions] First question from Alessandro Di Vito, Mediobanca.

The first question is relating to the field. Other operators in the field have forecasted an acceleration of optimistic forecast for the year. Do you take part in any tender in the year? The second question is about the increase in revenues due to the positive optimistic forecast. The third and last question if can you give us some guidance on the trends that you expect for 2026.

I'm going to answer some of your questions. [indiscernible] answers to questions will be more specific. On the gas tenders, sure, we also have received, from the contracting stations we have received news that there could be gas tenders during the year. The premises are good. So what you say, what you have read is indeed true as in the past, it has been blocked, but the gas tenders, there will be this year, tenders have already been published.

So since we are interested in taking part in some of the tenders, we cannot give you all the information, it is confidential. In the industrial plans, we have already stated that Ascopiave would take part in some of the tenders. We have indicated in [indiscernible] the plan as to what our policy is going to be in 2026.

So once the tenders are officially published, then you will know as well the [indiscernible] and what our policies will be, what evaluations will be. For example, in the strategic plan, we have already stated what our policies will be in 2027-2028. So you know more or less are the perimeter of our [indiscernible]. We are ready to take part if they are officially opened.

And if there are growth drivers that [indiscernible] the opportunities, relating to the impact on [indiscernible] I'm going to give you a very quick evaluation. [indiscernible] based on the results, the amount we expect to pay between EUR 1.6 million - EUR 1.8 million. Relating to the prospect 2026, we will publish -- we will give some guidance. We will give you some guidance, some tangible guidance, but for that, we need the official publication of tenders.

So already in our press release, we have given -- in our strategic planned press release, we have already issued the policies of what our policy will be and the framework within which we will operate. So since we have acquired some new assets, so we also have to take that into consideration. So next year, there could be an increase surely in our turnover, in our revenues. Some of our assets that we have acquired from [indiscernible] will be perfected.

We are going to work on it to enhance the performance of these assets. Obviously, we have also to consider what antitrust dictates to us. But what we need to do, our goal is only to increase our performance in the gas sector. That's for sure.

This is one of the goals of the year 2026 that we have set for ourselves. Once we have - we will be [indiscernible] so the result of 2026 can surely be an improvement of what we have achieved, what we have accomplished in the year 2025. So EUR 8.6 million is the tariff balance that we have achieved, that we have also managed to get from Estenergy.

And -- so the dividends have to be taken into considerations. The dividends have been extremely generous this year as you must have seen from EUR 22 million of dividends as you have seen from our press release. So these components [indiscernible] to be taken into consideration. So anyway, whatever we do, we do it bearing in mind the stability of the regulatory framework. This is the forecast, these are the numbers that we can provide you in order that you can make your own guess on our 2026 performance.

[Operator Instructions] The next question is a follow-up from Alessandro Di Vito, Mediobanca.

An additional question from me. So what do you expect for the year 2027 if France is excluded from the RAB basis?

We haven't made any simulation on this. There is a trend that tax rates are going to increase. So sincerely, we cannot give you any tangible guidance on this. But there is no constant figure that we can give you. There will surely be consequences from the cost level, dividend. Anyway, the regulatory framework is still standing. So we just hope there will be no adverse effect. So I hope [indiscernible] is going to take into consideration that there is a new situation that has emerged. But as of today, we don't know and we haven't made any simulation.

[Operator Instructions] Ladies and gentlemen, there are no further questions. So thank you very much for your participation and see you at the next call. Thanks a lot. This is a Chorus Call. The conference is over. Thank you. You can disconnect your phone.

[Interpreted] [Audio Gap] sustainbility combining with the interest of our main stakeholders and leveraging the group's current positioning and the enhancement of its resources and skills. In the plan, economic financial objectives integrated social, environmental and governance objectives in order to pursue sustainable success. Strategic pillars. The company's strategy is based on 4 fundamental pillars: growth in the core business with gas distribution, renewable energy, sectors in energy efficiency, economic and operational innovation, strategic guidelines that we intend to follow are closely connected and mutually reinforce each other by supporting overall corporate development with a view to sustainability. The integration of an economic financial nature and explicit objectives for social nature for which the group identified sustainable development objectives as the basic element of development growth.

And we could establish more detail the strategy and its impact on the economic data, I will make a few brief remarks on the group's current activities. group structure is a result of strategic repositioning that began in 2029, which involved a gradual exit from the gas and energy sector gas distribution [indiscernible] 2025 with definitive transfer to the Hera Group of the minority interest held in the company and Hera Comm. This transaction possible to obtain the resources needed to finance the acquisition of a set of gas distribution concessions from the A2A Group, which allowed Ascopiave become the second national operator and consolidate its presence in Lombardy.

Ascopiave Group portfolio of assets characterized by low risk profile. At the end of 2025, the invested capital over $1.5 billion, of which about 85% is employed in the regulated gas distribution sector. Ascopiave is a key player of the sector consolidation of the gas distribution sector and has reached a size and positioning capable of fostering further growth in this business. Thanks intense M&A activity conducted over the years to the group about 1,500 users over 2,000 kilometers of the second largest operator nationwide in the sector [indiscernible] significant presence in Lombardy EUR 1.410 billion. In the 2-year period 2021, 2022, Ascopiave entered the renewable energy sector through a number of businesses, acquisitions and by establishing partnerships for the development of new generation plants. [indiscernible] completed the construction of the wind farm in Calabria. Today, the group operates an 84-megawatt generation plant consisting of 27 hydroelectric plants located in Veneto, Lombardy, [indiscernible] and 2 wind farms in Southern Italy. The group is also the construction of new projects with photovoltaic technology in Veneto and will soon come into production.

Having concluded the description of the group activities, I will now make a few comments on the context and trends in the sectors relevant to the group's business, which are a fundamental prerequisite for the proposed strategy. clear evolution of the energy market depends on technological transformation and on the political both at national and European level in favor of a transition to an economic competitive resilient and compatible energy system.

Two fundamental indications there emerge from the analysis carried out.

The first is that the gas sector will be able to play an important role in the energy transition, providing that infrastructure evolved technologically to process and transport green gas and achieve towards integration with renewables, which are nonprogrammable energy sources.

The second is that renewable energy are an important factor in decarbonization and therefore, a significant development of installed renewable power is expected in the coming years. In this year, the transition of energy transition, gas a key source for achieving a sustainable energy goal also through potential integration with renewable energy resources.

Despite the fact that progressive reduction in natural gas consumption and growth in electricity consumption is expected, [indiscernible] the so-called gas [indiscernible] green gas with existing infrastructure and increasing integration with the renewable energy system through the storage of nonprogrammable renewable energy and power to gas to processes presents key drivers for the growth of the sector and the necessary response to the risk of shrinking gas consumption and reducing the use of existing infrastructure. In the medium to long term, biomethane and hydrogen will represent the main alternatives to natural gas.

In particular, they will account for about 34% of gas demand by 2040. Green gases in addition to contributing to decarbonization can enable other significant benefits such as greater energy, avail of production serves, storage and transport through existing transport networks, the end users, transport industrial use, power generation, et cetera, integration with electricity grid, for example, power to gas to power. [indiscernible] will have to be adapted to allow the injection and withdraw tax of gas, which in the near future and integration with electricity will play the same role played today by natural gas with the same end users. Infrastructure adjustments to the current network will therefore be necessary to facilitate the penetration of gas and support the decarbonization of the energy system. [indiscernible] The specific context of the action plan outlined for the coming years. The group's positioning and expertise in natural gas distribution provide a solid foundation to support of the scope of activities managed.

Consolidation process in the sector growth op has been able to and will be able to exploit in the future, thanks to [indiscernible] economic management efficiency and its financial strength. The growth will be achieved in various ways through acquisition of companies or branches of companies already operating in the sector, the winning of tenders for the award of scope concessions, the establishment of partnerships and participation in scope to seize new M&A opportunities.

In 2025, the group significant [indiscernible] which enabled it to increase its user base by over 60%. Thanks to Ascopiave's significant strength presence [indiscernible] in the 1/3 of the region and 17% of the Lombardy -- another growth driver is participation in tenders [indiscernible] identified a number of ATM tenders which intends to participate also defining the level of priority and interest. [indiscernible] and the volume of calls for tenders.

[indiscernible] that the time required to avoid the services may be rather long also due to the legal disputes that generally accompany the decision intends to pursue growth in the sector through the establishment of partnership companies tend to take advantage of new opportunities in the M&A field operation includes financial and operational risk through the results of a broader portfolio of concessions.

Given the complexity and uncertainty of the underlying valuation, it provides a preliminary estimate of the possible economic and financial impact on options, providing separate evidence thereof. [indiscernible] development and maintenance work on the newly acquired net, as a further driver of growth, the plan that the group will be awarded a number of concessions identified among those of interest and the assessment of the progress of the tender process and evolution amount a total of EUR 207 million, partly for the payment of the redemption value of the investment plan. These investments are estimated to generate incremental EBITDA of EUR 18 million by 2029.

[Audio Gap]

In a favorable market context, a portfolio of dining to further expand the capacity of the man for the construction of new plants. Economic and financial projections include the completion of ongoing projects for the construction of [indiscernible] with a nominal capacity of 7 megawatts and the construction of a plant for the production and distribution of green hydrogen. The residual investment envisaged in the plan for the completion of the initial of EUR 33 million should generate an incremental EBITDA of EUR 4 million.

It should be noted in any case that the hydrogen production is expected to be fully operational by 2022, beyond the forecast horizon of the planned draw policies, which intend to continue along the path undertaken in recent years, which has led to excellent results. In this sense, the company's policies and practices to the purpose will be confirmed and strengthened the continuous monitoring of process efficiency through the use of systems and dedicated organizational resources, personnel remuneration system.

Efficiency management measures will be based on digital innovative technological solutions, internal process control, staff training, care management of with external suppliers, with the ultimate aim of maintaining a lean and flexible cost structure.

[indiscernible] has achieved results on the management of efficiency front, implementing organizational technological solutions functional both improving the quality and reliability of the service and to contain costs. [indiscernible] was launched, which involved all the companies of the group. This process involves the renewal of systems and procedures, the rational of logistical and operational locations [indiscernible] offer services. This has enabled optimization of development, making it possible to internalize many activities contracted out to third parties and therefore, reduce management costs and increase the commitment of internal resources to invest...

As a result, operation costs in 2025 reduced by [Audio Gap] economy digital, and processes. significant commitment initiatives also involve the introduction of management methods with certain innovative content is envisaged in the plan.

Lastly, it should be emphasized that Ascopiave has experience in the integration of [Audio Gap] completed several M&A transactions in recent years, leveraging this experience to further improve the group's economic efficiency standard [Audio Gap] also thanks to the procedures consolidated at the group level has been performed to define an organic program of intervention aimed at guarantee continuity of service and in general, improving management efficiency.

With this in mind, the organizational structure was optimized, integrating the workforce of the business units present in the area and internal activities [indiscernible] less import pillar of the company's strategy. Innovation management is a future activity for company targeting both short and medium-term objectives. In the short and medium term, Innovative makes it possible to improve the levels of economic efficiency and quality of the services provided, which is dispensable to achieving satisfactory company profitability and maintaining an adequate competitive capacity towards the other operators in the sector, also in view of the competitive compensation intended for the awarding of concessions.

In the long-term perspective, technological and business model innovation is fundamental to responding positively and in an economically sustainable manner to the transformation introduced by both European and national environmental and energy policies. [indiscernible] plans to increase management of efficiency through further digital processes for which in the and single [Audio Gap] virtual reality to support operators the [Audio Gap] the economic impact the [indiscernible] significant part of ongoing practically feasible and on which there is a high degree of visibility additional development related to the future of interest located [indiscernible] which concerns the timing of the startup of tenders and the actual outcome of the full year 2022, the group expects to make a significant volume of investments totaling EUR 675 million.

Investment in the distribution sector amounted to EUR 67 million over the plan period, of which EUR 46 million is due to growth and EUR 1 million in the current scope.

[Technical difficulty]

Compared to 31 December 2025 financial [indiscernible] EUR 751 million distributed to the main stakeholders part of the added value over the plan period to the benefit of share and due to reduce exposure to interest rate changes and controlling refinancing financial ratio stands at [indiscernible] EUR 7 million [indiscernible] allow us to indicate over the next few years, the distribution of a dividend per share increasing from EUR 0.16 per share to EUR 0.9 [indiscernible] stable cash flow and economic returns renewable energy and green hydrogen [indiscernible] the plan and now we can start the Q&A session.

[Interpreted] [Operator Instructions] The first question is from – [indiscernible]

[Interpreted] [indiscernible] can you give us some extra details about the plan in Ascopiave on the M&A contributions relating to the assets... Especially relating to the Italgas operation.

Can you give us some more information related to Italgas, which you may be in possession of? What are the elements you have already envisaged as M&A? [Audio Gap]

What market references, what is the market information that you are in possession of –

[Interpreted]The strategic plan gives us a detailed list of the investments, especially on the renewables.

[Interpreted] So can we consider the renewable sources as your -- as the core business of Ascopiave over the next full years?

The last question of a financial nature. Can you tell us how you're going to finance the debt? And what about you have doubled the financial expenditure. How are you going to manage that?

[indiscernible] [Audio Gap]

[Interpreted] So we have taken... [indiscernible]

Renewables is not our focus. I want to make this clear. It's ancillary activity compared to all the rest. It gives a valid contribution of the overall results of our company.

This could be a disposal moment in which there is an interest on our part to invest in the distribution of gas. So there could be some decommissioning of some activities.

We want to be very clear and transparent on this. [Audio Gap]

Relating to the efficiency, there's no doubt we have some objectives which does not necessarily mean they are going to reflect on the improvement of margin. [Audio Gap]

I mean if we include the improvement of costs in every plan, we will have to adjust -- keep on adjusting the cost.

But what we do is to have a long-term view over the [ 4-year ] period up to 2029. [Audio Gap] Especially, for example, [indiscernible] has reduced the price [indiscernible] indicate the efficiency, but we don't want to be too aggressive in our forecast.

So up to '29, there will be a reduction of cost -- there will be a reduction of a couple of million euro there will be also another reduction of cost of EUR 7 million if you consider the overall efficiency measures that we are taking.

Even though we have been taking a very, very conservative -- we have been very, very conservative in our estimates for the future.

Even though we always keep on improving our efficiency benchmarks compared to the year 2017, we keep on working.

We don't have too many aggressive -- we haven't taken aggressive measures or overly optimistic measures or catalyst measures.

We have been very, very prudent related to M&A operations [Audio Gap] The plan does not envisage -- we have been very, very transparent in representing our data, our consolidated data also in our EBITDA figures.

We have market references. [Audio Gap] But we take them into consideration, but then we add an element of prudence.

But as you can see, if you can really study our plan, you will see that it can really yield some excellent results.

So we have been very, very prudent in our estimates, even in our positive estimates, even though we are sure that we will be doing better. The EBITDA multiples will be around 10. But these are not absolute figures.

We make an in-depth analysis. We don't use the [indiscernible] so we try to the integration of values, all the numbers that we have a look at all the numbers at all the figures. We take a global view of every table we analyze -- what we do -- we don't have any other acquisitions in view as we have written in our plan.

On ATM tenders, we need to underline there are uncertainties -- all the tenders are for Northern Italy... We have taken a lot of elements into consideration even when we take part in the tenders, we will not be overly prudent. No careless predictions have been made -- even though we are keeping our targets confidential. There are tenders that have been published.

We are examining them and evaluating with a great deal of attention if they are worth taking part in -- each time there is a tender, each time the tenders are signed, there are claims, there are [indiscernible], there are [indiscernible]. So also in this case, we need to be very, very, very prudent in order not to take part in tenders that are subject to claims and counter [indiscernible] renewables, we have already stated we have already spoken refinancing we have already spoken. Dr. Paggiaro will mention it.

Regarding financing, we have considered the debt has passed from EUR 600 million to EUR 900 million. We based on the amortization plans with an interest rate quite low relating to the future. We looked at the future interest rates that could be applied. And we also took into consideration the interest rate of the future. So which gives us about EUR 30 million. Our simulation is based on a series of financial instruments that we have been using so far.

[Interpreted] Next question, [indiscernible] from Mediobanca.

[Interpreted] My first question is a follow-up on tenders. I would like to know do you have any signals of acceleration on tenders? And what is your outlook on [indiscernible] if you expect tenders to be awarded -- expect tenders to be awarded soon? Or do you think it will take a lot of time? The second question is about the return on investment. We have some months at disposal to have a more precise view. What do you think about -- do you have any immediate forecasts to be made?

[Interpreted]-- relating to the tenders... We don't think there are going to be several tenders this year. We don't see any acceleration. Many tenders have been announced very, very small tenders, nothing exceptional as far as numbers are concerned. This is something positive. Surely, the aim is to improve the services, especially for the end user.

There are difficulties organizationally, which makes the tender, the participation itself in the tender very difficult. In principle, something is moving. And let's say it is -- we have contemplated it in the strategic plan.

Other things are substantially stuck, let's say. The regulatory tax is 5.9%. We have included it in the plan to see if we can have some savings if we can have a return on investment of 7.6%. We think this will be -- this will depend mostly on the efficiency that operator can achieve.

[Interpreted] Next question from [indiscernible].

[Interpreted] My question refers to financial structure consistent with the profile of the assets relating to total number of assets. You have spoken of additional deleveraging developed by the plan. I would like to know what is your maximum target in case you have an opportunity to perform an acquisition? In addition, there is obviously. What is your maximum cash out target in addition to what has been put in the plan?

The second question is less tenders in this case, referring to which [indiscernible], but a bigger plan, a bigger view starting summer 2025 onwards. If the competitors [Audio Gap] what other competitors say? Do you want to change the competitive scenario, the participation rules in [ gas tenders? ] [Audio Gap] Are there any novelties with this respect? Or have things remained the same in the corridors of power, what has been decided?

The last question is [Audio Gap] refers to [Audio Gap]. I've seen that there is no reference in the plan to any potential operation [Audio Gap] about this other local player in [indiscernible] if you have made other further considerations. [Audio Gap]

[Interpreted] Regarding the financial structure [Audio Gap] index is 4.8 in the plan at the end of the plan. We can come up to -- we can go up to 5.5 from 4.8. It can be stretched right up to 5.5, as I said, relating to renewables. There could be some disposal. [Audio Gap] if it becomes necessary to reinforce our core business since it is not a core activity, but just an ancillary activity of our business.

However, it's an activity that gives us significant -- brings in significant [indiscernible]. So anyways, it's functional to the results that we have been achieving. It has an important value for our results. [Audio Gap] authorization of hydroelectric is being discussed in Europe to be introduced in Italy. So this would make -- this would actually change the renewable scenario in Italy. So it's also going to change our efforts relating to renewables. [Audio Gap] there has been talk that has been going on for renewables.

So we should see how things shape out. [Audio Gap] So this type of plants have their value relating to tenders, everything has sort of cooled down in the sense that there's no tangible discussion, at least in our opinion on tenders or to change the number of ATMs, the number of items, the number of items not saying anything what happen is a big mistake since we are the second national operator. [Audio Gap] should be smaller than the first one. This would mean really killing the competition participating in tenders. So it's no longer 150 million, but 750 million if all 80 million are going to be considered. So there would be a monopoly with all the negative consequences. So there should be a solution not on the number of ATM [Audio Gap] go towards the nationalization of the sector, but we think -- we must think of an alternative solution that could be the moratorium of the concessions.

And we think of the gas tenders so that the bidding companies are incentivated to take part in tenders. So it's not a postponement but a postponement must be something that really makes -- improves the overall global situation of the power gas scenario. So there could be a transitory system that can improve the system of tenders and participation in tenders relating to act [indiscernible]. We have always been in touch with them. We have included in our plan, strategic plan, [indiscernible] possibility, which we have [indiscernible] [Audio Gap].

[Interpreted] The last question is [indiscernible]. [Operator Instructions]. Dr. Cecconato, there are no more questions.

[Interpreted] Thank you very much. And thanks all the people for participating. Have a nice day. Thank you. Thank you.

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

Good morning. This is the Chorus Call. Welcome to the presentation of the financial results as of 30 September 2025 of Ascopiave. [Operator Instructions]

The chairman and CEO of Ascopiave, is now going to give the illustration.

Thank you, everyone. Thanks, everyone. Page 2, consolidated results as of 30 September 2025 compared to 30 September 2022. Let's go to slide page 2 of Ascopiave results and [indiscernible] structure as of 30 September 2025. The slide [indiscernible] includes the group's corporate structure as of 30 September 2025. If it should be noted that scope of consolidation has been simplified compared to the first nine months of the previous period due to a number of extraordinary transactions finalized at the end of 2024.

On 31 December 2024, the reorganization of the subsidiaries active in the gas distribution and renewable energy sector became effective for statutory purposes. Through a series of merger and demerger transactions, the Group's activities in the natural gas distribution sector merged into two companies, one operating in the Northeast, one in the Northwest. Specifically, the group companies [indiscernible] AP Reti Gas North S.r.l. were merged by incorporation into subsidiary [indiscernible] and at the same time, the [indiscernible] merger in [indiscernible] from [indiscernible], the group's other distribution companies, [indiscernible] were merged by incorporation into [indiscernible] following this operation, from [indiscernible], which changes company name to [indiscernible] paid out a partial and proportionate demerger in [indiscernible] on the same date, the merger project by incorporation of the company Asco Renewables became -- effective as Asco EG S.p.A., which took the name Asco Power S.p.A. [indiscernible] merger transaction that took place took effect for statutory purposes as of 31 December 2024 and for tax and accounting purposes as of 1 January 2024, while [indiscernible] demerger transactions took effect as of 31 December 2024. On 16 December 2024, and effective 31 December 2024, Salinella Eolico S.r.l. changed its company name to Asco Wind & Solar S.r.l. On 9 May 2025, Ascopiave acquired 9.8% of the share capital of Asco Power S.p.A., becoming sole shareholder. Effective 31 May 2025, Cart Acqua S.r.l. was merged by incorporation into Ascopiave S.p.A. In December 2024, Ascopiave exercised its put option on 25% of the capital of EstEnergy S.p.A. and the transfer of the share took place on 24 June 2025. On 1 July 2025, the transaction for the acquisition of the [indiscernible] of 100% of the newly formed company, AP Reti Gas North S.p.A. the company that took over certain business branches previously owned by Unareti S.p.A. and LD Reti

S.r.l. [indiscernible] in the gas distribution business in the provinces of Brescia, Cremona, Bergamo, Pavia and Lodi and these operations became effective.

Page 3, slide 3, changes in the consolidation perimeter and disposals of shareholders. The slide summarizes the impact of the main extraordinary transactions on the economic and financial [ engagements ] shown in the accounting documents.

Consolidated income statement for the first nine months, slide page 4. In the first nine months of 2025, the group realized revenues of EUR 183.9 million, excluding an EBITDA of EUR 115.6 million and a EBIT of 72.3 million. The net balance of financial income and expenses was positive at EUR 15.6 million, an improvement of EUR 23.2 million compared to the first nine months of 2024. This change is mainly explained by higher dividends paid by investing companies, in particular, by the dividend of EUR 22 million distributable by EstEnergy prior to the sale of shares. Income from companies consolidated using the equity method, which amounted to EUR 0.3 million, refers exclusively to the consolidated profit accrued by the Cogeide S.p.A. which showed a negative change of EUR 7.8 million compared to the first nine months of 2024. It should be noted in the 2024 financial year of Cogeide and the [indiscernible] by Ascopiave 25% of the [indiscernible] the economic [indiscernible] group [indiscernible] pertaining to the group after 30 September 2024, while there is no accounting entry in the 2025 financial year. Taxes allocated in the first nine months of 2025 weigh on the income statement by EUR 12.3 million. The tax rate, calculated by normalising the pre-tax result of the effects of the consolidation of the companies Consolidated using the equity method, dividends received from investees and the capital gain realised from the Sale of the investment in EstEnergy [indiscernible] 36.1% as of 30 September 2024, to 33.1% as of 30 September 2025.

Consolidated balance sheet, 30 September 2025 slides on Page 5. As of ended 30 September 2025, the group has EUR 1.551 billion in invested capital. Investment consists of [indiscernible] EUR 1,204.7 billion in intangible assets. EUR 55.8 million from the value of minority interest has [indiscernible] contributed and [indiscernible] EUR 25.7 million. EUR 53 million from other fixed assets EUR 54.7 million on the negative balance of working capital items and provisions to EUR 50.3 million from net invested capital in assets held for sale. [indiscernible] value of the 3% stake have in Hera Comm, the sale of which the Hera Group [indiscernible] on 8 October 2025 at a price of EUR 54.8 million. The intangible fixed assets shown under [indiscernible] amounting to EUR 1.247 billion, mainly consists of gas distribution networks and plants owned by the group, [ EUR 1.403 billion ], of which EUR 398.7 million is attributable to [indiscernible] consolidated as from 1 July 2025 [indiscernible] recognized following business combination of EUR 106.5 billion [indiscernible] equipment [indiscernible] real estate and the value of [indiscernible] plants. It should be noted that during the fourth quarter of the 2024 financial year, Ascopiave exercised its put option on the remaining shares of [indiscernible] for the 1 October 2024 [indiscernible] are recorded as of 30 September 2024 [indiscernible].

Shareholders' equity as of 30 September 2025 amounted to EUR 898.1 billion, an increase of [indiscernible] million compared to 31 December 2024. Net financial position was EUR 633.1 million, an increase of EUR 245.5 million compared to the end of 2024. The debt equity ratio was 0.71.

Slide page 6, operating [indiscernible] distribution, Slide page 6. As of 30 September 2025, the group's distribution company has managed approximately 1.2 million users, which approximately 45,900 users of Ap Reti Gas North consolidated into the group in 1 July 2025, an increase of 55% compared to 31 December 2024. In the first nine months of 2025 income distributed through net worth EUR 1.044 billion [indiscernible] in gas [indiscernible] consolidation as of 1 July 2025, we distributed 74 million cubic metres in the third quarter of 2025. The group perspective, [indiscernible] power plant with an installed capacity of 84.1 megawatts. In the first nine months of 2025, electricity production amounted to 145 gigawatts, a decrease of 25 gigawatts, minus 14% compared to the same period of the previous year, the latter being characterized by significant rainfall.

Revenues, Slide page 7. Revenues from the first nine months of 2025 amounted to EUR 183.9 million showed an increase of [indiscernible] determined by [indiscernible] consolidation perimeter by EUR 27.7 million, increased by EUR 0.3 million in gas distribution [indiscernible] revenues, the decrease in revenues from the sale of [indiscernible] from renewable sources of [indiscernible], an increase in revenues from energy efficient certificate EUR 1.9 million, an increase in other revenues of EUR 2.8 million. Gas distribution tariff revenues amounted to EUR 152.2 million and for an increase of EUR 29 million compared to the same period the previous year due to the enlargement of the scope of consolidation for [indiscernible] and to the relation of 2024 [indiscernible] operating costs and [indiscernible] 2025 on a like-for-like basis, EUR 48.6 million. Revenues from all generations from renewable sources amounted to EUR 17.4 million, decreased by EUR 4.1 million. Decreases mainly explained by the lower volume of energy produced.

Slide Page 8, operating profit, other operating expenses. Operating income for the first nine months of 2025 amounted to EUR 72.3 million, shows an increase of EUR 38.1 million due to the [indiscernible] scope of consolidation, EUR 5.1 million, increasing gas distribution target revenues, EUR 9.3 million, a decrease in revenue from the sale of electricity generated from renewable sources, EUR 1.1 million. The decrease in amortization and depreciation, EUR 1.1 million, capital gains of EUR 26.4 million related to the [indiscernible] sales in net energy, EUR 0.3 million decrease in net operating expenses.

Net operating expenses for the first nine months of 2025, the margins of EUR 50.9 million recorded an increase of EUR 7.6 million, driven by the change in the [indiscernible] revenue and cost items. Expansion on scope of consolidation, EUR 7.9 million. Low transaction fees remain [indiscernible] EUR 0.9 million, higher personnel costs, EUR 0.6 million, higher consulting costs, EUR 0.2 million of which EUR 0.2 million related to [indiscernible] higher cost for gas and electric utilities, EUR 0.2 million, low compensation to directors and [indiscernible] higher contribution for safety incentives, EUR 2.4 million, lower capital rate [indiscernible] costs, EUR 0.4 million. Other changes with a positive impact, EUR 0.3 million.

Slide page 9, personnel. As of 30 September 25, the group has 721 employees, an increase of [indiscernible] compared to 30 December 2024. This increase is mainly explained by the consolidation of AP Reti Gas North as of 1 July 2025, which have 229 employees as of 30 September 2025. [indiscernible] personnel cost for the first nine months of 2025 was EUR 18.2 million, determined by [indiscernible] consolidation EUR 2.6 million; higher capitalized labor costs, EUR 1.6 million, EUR 2.2 million increase in current personnel costs, mainly due to higher cost of incentive plans [indiscernible] increases during [indiscernible] the contracting business provided for the national interconference and in part [indiscernible] recognition.

Captain Expenditures, Slide page. Capital expenditures in the first nine months of 2025 amounted to EUR 60.6 million, an increase of EUR 9.1 million. Investments paid by AP Reti Gas North [indiscernible] consolidated since 1 July 2025 amount to EUR 4.3 million. Most of the technical investments related to the development [indiscernible] of gas network [indiscernible] amounted to EUR 31.3 million, of which EUR 12.2 million in connection [indiscernible] in network expansion [indiscernible] reduction plans. Investments in [indiscernible] amounted to EUR 8.3 billion. Investment in the [indiscernible] related to costs incurred for the maintenance and expansion of hydroelectric plant, EUR 3 million, for the construction of [indiscernible] plant, EUR 9.6 million and for the construction of other green energy plant, EUR 2.7 million. Other investments amounted to EUR 5.4 million related investments in land and buildings, EUR 0.9 million, hardware and software EUR 2.2 million, company vehicles, EUR 0.7 million an [indiscernible] EUR 0.4 million.

Net financial position and cash flow, slide page 11. The net financial position, effective 30 September 2025 amount to total EUR 633.1 million, an increase of EUR 245.5 million compared to 31 December 2024. During the first nine months of 2025, cash flow generated financial resources of total of EUR 67.3 million; net investment, in tangible and intangible assets resulted in cash outflows of EUR 60.6 million, net working capital management absorbed resources of EUR 2.7 million. The group collected dividends of EUR 2.7 million from investee company not consolidated on a line-by-line basis. Shareholder's equity resulted in cash outflows of EUR 32.5 million [indiscernible] to shareholders. The purchase of equity investments resulted in cash outflows of EUR 472.2 million. The realization of Equity investments generated resources of EUR 234.1 million.

Financial payrolls, slide page 12. Financial events as of 30 September 225 amounted to [indiscernible]. The loans are 60% variable rate and [indiscernible] average cost of debt in the first nine months of 2025 was 3.11%.

I have concluded my presentation. Now it is Q&A session. Thank you.

[Operator Instructions] First question from Roberto Letizia.

Good afternoon, everyone. Thank you for the presentation. Can you give us an update about the annual growth, RAB growth on annual anal basis, taking into account new business acquisitions. consequent to the expansion of the network, how will your strategy be in consideration of all these new strategies and new business combinations that we have made? And if you have any M&A opportunities as of today, can you give us also and overview considering the new regulatory framework?

Good afternoon [indiscernible] your first answer. The global RAB expansion of the scope of consolidation finalized as of 1 July 2025 is EUR 1.85 billion, so EUR 1.85 billion if RAB grows in relation to investments. We can -- there can be EUR 25 million, EUR 30 million on an annual basis. We are also evaluating other M&A operations big and small on a small basis and operations. we will be acquiring a distribution network, but on a small scale. If there are opportunities, we are able to seize opportunity. So we have an opportunity to grow.

On renewable energy, our view is taking for granted since we have been consolidating on gas distribution. The renewables are not something but not a significant core business for us. But if there is indeed an opportunity that brings up, there is some disposal in the [indiscernible] companies, we could take advantage for further growth.

Related to other M&A operations in gas distribution, [indiscernible] on the market. We have some small operations that will be following and if there are big operation, they will surely be entertaining as the proposals. Especially, there are some operators that want to leave the gas distribution business.

Relating to regulatory legislation. It has been quite constant. Nothing unusual has been happening. Some decisions that were meant to be taken have been postponed.

Next question is by Emanuele Oggioni or Kepler.

My first question is synergies. [indiscernible] mentioned, also in the press release. can you tell us what the target is going to be for 2026 in the field of gas and what synergies you envision in 2026? Then I have a question for you relating to [indiscernible] Have you had any negotiations with [indiscernible]? The last question is about the gas standards. For gas standards, has there been any change in the legislation on some business combinations, what is your opinion? And what do you envision? What do you expect for the year 2026? What are your best case scenarios for Ascopiave?

Thank you. From the moment we made the major acquisition of the [indiscernible], we took a joint, an important leap forward with a significant increase in above the base and also in the number of [indiscernible] we started global reorganization of the company that we add locally and we drove ahead of the reorganization of the network. I see information technology network management network. They're not in a position to give you a very precise and exact quantification of the exact positive impact the operation has had on us for Ascopiave [indiscernible] merge into our assets to bear fruit -- are going to bear fruit in the coming years. But as of today, I cannot give you any exact figures. So when we enter these figures into the year-end balance sheet financial statements, we will be able to give an exact amount.

In relation to Itau gas. Relating to the acquisition of Itau gas assets [indiscernible] decision, we are interested in [indiscernible]. This is a fantastic result for us. We will be having an extra from 27,000 to 30,000 BDR delivery points. So especially in the province of Padua, we will be able to consolidate and enhance the efficiency of our services. So if the number of users is not yet high, the operations are rather positive.

Relating to gas standards, your last question. There's been quite a lot of movement not only [indiscernible] but also around operations relating to the various category of the trade association. We don't -- there is a proposal in order that to merge the ATEMs and there is a counterproposal, the counterproposal is also tried to extend the concession in retail for investment. So we feel if we go to merge the ATEM, this is, in our opinion, within [indiscernible] as a negative proposal on the operation because if there is a merger, there will be [indiscernible] the value of the ATEMs will shoot up from EUR 130 million to EUR 700 million. So the participation in the [indiscernible] there will be a selection. [indiscernible] a very strong financial capabilities will be favored but if we analyze other factors, there won't be a real competition. So there will be a monopoly because only one big player or two big players would be able to participate in this bid. There is no possibility for other small players in the situation of monopoly [indiscernible] there were just one operated [indiscernible] so all other local and small operators were wiped off so even all of us have to pay the fees, the major beneficiary was just one player. In this case, the tender is managed in a centralized level. And local players there is no benefits that trickle down to local players, but proposals that helps all the players in the power and gas distribution, it will be something that benefits all the territories and not just one big player. The positive situation that [indiscernible] will be that all small players have a share of the cake and not just one big monopoly. So the best solution would be that all players can beat in a gas standard. I hope I have been clear with my opinion. So this is not just the opinion of Ascopiave, it is widely believed by all the smaller operators.

I have a follow=up. You spoke of around 30,000 delivery points [indiscernible] what is the RAB connected to these delivery point?

This was not included in the EUR 1.85 billion?

Yes, they were not included.

The operation will [indiscernible] March 2026.

Next question [indiscernible] Mediobanca.

Good afternoon. a follow-up. On Itau gas to [indiscernible] when do you expect the closing? And when is the cash out of these 30,000 redelivery points?

The closing is in the stage for every March 2026 and the fee is confidential, it is a price on the RAB which is EUR 22 million but the exact fees are confidential.

Next question is from Davide Candela, Intesa Sanpaolo.

On gas distribution, what you have just said on the strategy, would you be willing to leave the Northeast and enter regions of Italy? And in that case, how would you approach [indiscernible] just enter the two regions of Italy instead of staying just in the Northeast? Regarding the [indiscernible], do you have any news for us regarding these two areas?

Relating to the growth in gas distribution. We are moving around gradually. We look for assets, which are adjacent to where we are where we operate because it is more feasible for us, more convenient for us to work in an area which is [indiscernible] where we usually operate but this doesn't mean we cannot -- we are not going to enter other regions in Italy. But of course, no doubt that now we are a local operator we are just in Italy. So as I said, we just want assets which are joining in the areas where we operate.

Relating to collaboration with [indiscernible]. We have been working on some assumptions. We have been negotiating, negotiations have [indiscernible] slow. We have been analyzing new forms of collaboration that relate to the management, joint management some businesses and the possibility of collaborating.

The next question is a follow-up from Roberto Letizia, Equita.

Considering the two option that you spoke about. In general, how strong is your balance sheet in order to support some extraordinary operations if the opportunity comes for you. How solid is your cash flow?

We can [indiscernible] more or less the demand that we can invest. And then obviously, it's a step-by-step process [indiscernible] is what we can invest as of today without thinking of some extraordinary financial operations.

There are no further questions.

Thank you very much [indiscernible] and have a great day.

This is the Chorus Call operator. We have finished the operation. Now you can disconnect your phones.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]