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Edited Transcript of ACE.MI earnings conference call or presentation 13-Nov-19 3:30pm GMT

Nine Months 2019 Acea SpA Earnings Call

Rome Dec 5, 2019 (Thomson StreetEvents) -- Edited Transcript of Acea SpA earnings conference call or presentation Wednesday, November 13, 2019 at 3:30:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Elvira Angrisani

ACEA S.p.A. - Manager of IR

* Giuseppe Gola

ACEA S.p.A. - CFO and Director of Finance, Administration & Control

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Conference Call Participants

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* Emanuele Oggioni

Banca Akros S.p.A., Research Division - Analyst

* Enrico Bartoli

MainFirst Bank AG, Research Division - MD

* Javier Suarez Hernandez

Mediobanca - Banca di credito finanziario S.p.A., Research Division - Research Analyst

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Presentation

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Operator [1]

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Good evening. This is the Chorus Call operator. Welcome to the ACEA presentation on 9 months of 2019 results. (Operator Instructions) Now I hand you over to Ms. Ira Angrisani, IR Manager of ACEA. Please go ahead.

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Elvira Angrisani, ACEA S.p.A. - Manager of IR [2]

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Good afternoon. And welcome for attending the presentation on the 9 months 2019 results of the ACEA Group. Giuseppe Gola, CFO of the company, will be reporting on the results. And at the end, Giuseppe and I will be available for the Q&A session. Thank you very much.

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Giuseppe Gola, ACEA S.p.A. - CFO and Director of Finance, Administration & Control [3]

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Thank you very much, Ira, and welcome to you all.

So the first 9 months of 2019 delivered very good results, in line or, in most of the cases, above the budget targets and above the guidance that we provided. EBITDA reached 769 months (sic) [EUR 769 million] at the end of September 2019, up 20 -- 12% versus the first 9 months of 2018. EBIT, EUR 403 million, up 6 months (sic) [6%] versus the first 9 months of 2018; and CapEx, EUR 529 million, up 28% versus the first 9 months of 2018.

On the -- of such grounds, we have reconsidered our EBITDA guidance for 2019 -- for the full year 2019. If you remember, we already increased it in the past by roughly 7%.

Now we can say that we can expect EBITDA growing by at least 10% for the full year, so year-on-year. In 2018, this figure was EUR 933 million. So we are -- we estimate will be above EUR 1 billion in terms of EBITDA. We'll confirm our guidance for CapEx. We maintain the CapEx guidance with an increase of over 10%, slightly higher than 10% for the full year. And we confirm a net debt guidance in a range between EUR 2.85 billion and EUR 2.95 billion net, as we already announced, net of items that we hadn't considered early this year, namely the impact of IFRS 16, M&As and the transaction -- M&A transactions and the consolidation of Acquedotto del Fiora that we started October this year. Considering this range, our target is, of course, at the lower figure of the range. So net of these items, we aim at EUR 2.85 billion in terms of net debt.

On the following page, Page 3, we have reported the executive summary. That is to say we have summarized the most relevant events of the first 9 months of 2019. I'm talking about a number of transactions and events that had an impact on our 9 months' results.

So in March, for instance, we completed the 51% stake acquisition of Pescara Distribuzione Gas. So we entered the gas distribution business. We are currently negotiating additional acquisitions that I hope I'll be able to report on before the end of the year.

On the second of April, we approved over the business plan 2019-2022, which provides the following target set: EBITDA, EUR 1.3 billion roughly in terms of EBITDA in 2022; RAB in 2022, EUR 4.8 billion; CapEx, EUR 4 billion for the whole period 2018-2022. And we also announced a dividend in 2019, paid in 2020, of EUR 0.75 per share.

We also issued and successfully saw bond worth EUR 500 million in May last with -- at a fixed rate of 1.75% with a maturity of 9 years. Fitch Ratings and Moody Ratings in May and August, respectively, were confirmed. So Fitch Ratings was confirmed at BBB+ and stable outlook; and Moody's, BAA2 and stable outlook.

As for M&A transactions in July, we completed the acquisition of 90% of Demap, that is a plastic treatment plant located in Piedmont with an enterprise value of 100% of roughly 200 -- EUR 20 million, I beg your pardon, an EBITDA of $3.4 million, and the plant is authorized to treat 75,000 tonnes of plastic per year.

In July -- I'm referring to concessions now. In July, we completed the procedure for the renewal of the concession for the Peschiera-Le Capore water main that was due to expire September 2031. As for M&A, we signed a number of agreements to acquire photovoltaic plants totaling a capacity of 25 megawatts, total enterprise value of EUR 75 million and total EBITDA of EUR 11 million on a yield basis. And again, as for photovoltaic and environment, we are also considering other possible agreement that might be completed by the end of the year.

As for environment, we completed the acquisition of a 60% stake in Berg, a company located in the province of Frosinone for liquid-based waste treatment services. This will have a substantial impact on our full year results, and particularly of next year results, because we managed to modify our -- the shareholders' agreement of the Acquedotto del Fiora. And now according to the new shareholder agreement, ACEA manages Acquedotto del Fiora and therefore, can consolidate it fully within the ACEA business scope. Just to give you an idea of the impact this may have on ACEA results, Acquedotto del Fiora generated an EBITDA of EUR 58 million in 2018. Net debt was EUR 96 million in 2018. And again, with the consolidation, it had generated a profit of EUR 13.1 million, so it had an impact of only EUR 4.7 million on the ACEA results. And clearly, this will be completely different next year.

For the environment business in Monterotondo Marittimo, we opened one of the largest composting plant in Central Italy with an authorized capacity of 70,000 tonnes per year and annual electricity production of 6 gigawatt-hour. The total investment that was spread over a number of years of roughly EUR 22 million and expect the contribution to our annual EBITDA of EUR 2.5 million.

And another important point I would like to highlight, we selected Google Cloud as a technology partner to speed up the implementation of digital innovation, and we signed an agreement with ERG, 2 PPAs for the supply of a total of 1.5 terawatt hours of renewable energy for 2020 up to 2022.

On Page 5, you see a recap of the financial highlights I've already mentioned. So consolidated revenues reaching -- up 7.9% over the previous year. EBITDA, EUR 769 million, up 12.3% on the previous year; EBIT, EUR 402 million, up 5.6% from the previous year, again; and the group net profit of EUR 218 million, up roughly 2% on the previous year. As I already pointed out, as for our guidance, we updated our EBITDA guidance. We expect EBITDA to grow in excess of 10% for the full year. Clearly, one of the drivers of this growth that we hadn't considered was the full integration of Acquedotto del Fiora that, in Q4, will contribute roughly EUR 50 million EBITDA.

CapEx, as I said, we have reached EUR 529 million, and we confirm our CapEx guidance. So CapEx will be up 10% on 2018 and will certainly exceed EUR 700 million on a yield basis. Net debt at the 30th of September 2019 reached EUR 2.96 billion, up 15% versus the end of 2018. And again, we confirm our net debt guidance, net of the IFRS 16 impact of the M&A transaction and our Acquedotto del Fiora consolidation. These items, which are not factored in our guidance at the 30th of September, account for EUR 60 million for IFRS 16 and roughly EUR 70 million, 7-0, million for the M&A transaction that we have already completed. We expect these EUR 70 million to become EUR 100 million by -- for the full year and the Acquedotto del Fiora consolidation will contribute to an increase of net debt by roughly EUR 90 million, 9-0, million.

So all in all, these nonrecurrent items will contribute, increasing our net debt by EUR 250 million for the full year. As for our guidance, as I said, we aim at the lowest part of the range, so EUR 2.85 million (sic) [billion], again as net debt for the full year 2019.

On the following page, you see the breakdown of EBITDA, the evolution of EBITDA. 81% of our EBITDA comes from regulated business and balanced by nonregulated business. Particularly, most of the growth of the previous year comes from water that contributed EUR 77.5 million. So a substantial contribution comes from the Gori consolidation that became effective starting November last year.

Then we have the contribution of energy infrastructure of EUR 14 million. We have a reduction of EUR 15 million coming from commercial and trading, and I'll back -- go back to it later on. Environment, a reduction of EUR 7.5 million, which is mainly due to CIP6 incentives that have disappeared. They are no longer there. Then other that comes from, let's say, engineer of foreign markets and corporate that accounts for EUR 15 million.

On Page 7, you see the breakdown of the water business. EBITDA reaches EUR 370 million, up 26% on the previous year, of which ATO2 contributed EUR 270 million, up 8% mainly due to the investments made, the contribution to the tariffs that derived from such investments. ATO5 contributed EUR 19.2 million, up EUR 16.4 million (sic) [16.4%]. Then we have nonrecurring items of EUR 52 million that is something that was not there in 2018. So Gori, $51.3 million in the first 9 months of 2019; and then companies consolidated using equity method, EUR 26.2 million; and other consolidated companies, EUR 3.5 million. So I already mentioned the full consolidation of Gori, which certainly provides a substantial contribution to our EBITDA growth. But we also have the contribution of Pescara Distribuzione Gas. Though being a different business, it is currently consolidated under the water business. And then as I said, starting October 2019, we'll be able to fully consolidate Acquedotto del Fiora.

On the following page, Page 8, we have the energy infrastructure business that reached an EBITDA of EUR 290 million, up 5% versus the previous year. Distribution contribute EUR 17 million to our growth, which is mainly the result of the increase of WACC on the previous year following the CapEx made. Generation, EUR 35 million, down versus 2018. But this is mainly due to the fact that in 2018, we had EUR 5 million surplus, which is not there this year. And for 2019 -- sorry, we had an accrual of EUR [13] million. And now in 2019, we have the contribution of the new photovoltaic plants that we acquired for EUR 2.3 million, which is offset by lower volume of energy generated by hydroelectric plants and the revamping of the Mandela plant. Public lighting is flat. Last year, we had a negative figure of roughly EUR 2.4 million. As for CapEx, we can say we have renewed 400 kilometers of medium voltage and low voltage network.

On the following page, you see commercial and training -- trading business. EBITDA reached EUR 47.2 million, down 24% versus EUR 62 million of the previous year. But as already pointed out, in previous calls, let's analyze the performance by quarter of commercial and trading business. As you can see, this drop in EBITDA is mainly due to the difference between the first 6 months of 2019 versus the first 6 months of 2018. Starting mid-2018, this business generated roughly EUR 16 million per quarter. So we expect this year in Q4 to go back growing in terms of EBITDA. As for the number of clients, we see an increase of energy sold and gas sold to -- on the free market, mainly due to the growth of free market clients.

And as for energy, we have grown 8% the number of our clients, which is much higher than the market average. And the gas clients reaches an increase of 6% on the previous year. This growth is mainly due to the substantial reorganization and restructuring of our network -- same network, which made it possible to more than double the number of new clients acquired in the first 9 months of the year. We have acquired 188,000 new clients versus 92,000 of the previous year, so a substantial growth, which clearly provides us with a good prospect to improve our commercial and trading performance in the next few months. In terms of margin this year, we suffered the drop of the EBITDA margin, mainly due to the drop in the enhanced protection market. The tariff was reduced for such clients, especially in the center and south of Italy.

On the following page, Page 10, you see the environment business that reaches EUR 40.6 million in terms of EBITDA, a drop versus the first 9 months of 2018. This is mainly due to the CIP6 feed-in tariffs that expired mid-July, and this contributes this drop of roughly EUR 7 million versus the previous year. However, the expiration of CIP6 was planned for April this year. So we had -- we enjoyed the 2 additional months. And these 2 additional months compared with our budget target that contributed EUR 9 million positive impact. The consolidation of Demap that has contributed EUR 1 million to our EBITDA for the current -- for the 9 months of the year. And then we have the Berg plant that we acquired. As I said, we acquired 60% stake in October last. In October, we also opened the Monterotondo Marittimo plant near Grosseto, which is one of the largest composting plants in Italy.

On Page 11, there you see a summary of all the other businesses. There's nothing in particular to highlight here. Simply, in October 2019, the court actually canceled the antitrust fine that -- which contributes a contingent asset of EUR 16.2 million. That was the provision that we had that provided for end 2018 when the fine was issued by the antitrust authority, which, as I said, such fine has been canceled.

On Page 12, you see our EBITDA -- EBIT and net profit evolution. You see EBIT is up 5.6% from EUR 381 million to EUR 402.5 million. Drilling down on this figure, you see substantial increase of depreciation of EUR 306 million versus EUR 215 million previous year, which is mainly the result of the following: first of all, increased CapEx across all businesses and the development of the IT platform; then the consolidation of Gori that contributes roughly EUR 18 million; and then the impact of the IFRS 16 that contributes roughly EUR 18 million. As for write-downs, again, and provisions, I'd like to point out that this year, Gori contributed roughly EUR 9 million. The total result is that our net profit is up 1.9% on 2018.

On Page 13, you see the evolution of our CapEx that grew substantially in the first 9 months of 2019. We're still focusing very much on the regulated business, 83% of our investment is confined to regulated business. And the growth of our CapEx is in the water business, the most substantial contribution comes from Gori consolidation.

As for energy infrastructure, the growth of CapEx is mainly due to upgrade and expansion of the grid, the resilience plan with the work on secondary substations and on mid- and low-voltage network, which will also contribute a very positive impact next year.

And then again, as energy infrastructure business is concerned, we invested to revamp the Mandela hydroelectric plants and the Tor di Valle and Montemartini thermoelectric plants.

As for our commercial and trading business, CapEx grew to develop new systems to acquire new clients. And as I said, we increased by a factor of 2, the number of new clients acquired versus 2018.

As for the environment, we focus on the Monterotondo Marittimo plant that opened recently and the Aprilia composting plant that was expanded. As for other, it's mainly corporate and IT projects.

On the following page, Page 14, you see the cash flow details -- cash flow figure. Cash flow amounts to EUR 122 million; EBITDA, EUR 716 million (sic) EUR 769 million ; change in working capital and CapEx, subtracted lease EUR 222 million; working capital, negative 500 -- EUR 118 million, I beg your pardon. But this is a very good result because you have to consider the seasonal nature of this figure. If you consider the past 12 months and you analyze the change in working capital, in the past 12 months, our working capital generated cash for a total of EUR 24 million. So this is a trend that shows that our working capital will improve further.

Our target for the full year is that -- a figure ranging between 0 and EUR 50 million, still negative, of course, but lower than the current one. As for net working capital, roughly 18 -- EUR 80 million is mainly the result of regulatory impact. So EUR 50 million is refer to electricity and the balance to water business. The improved performance of our working capital is due, in general, to good management of working capital but also better performance of our credit collection. For the first time this year in Acea Energia, the paid has been at 6 months has dropped from 5% to 3%, so 2% reduction, which makes Acea Energia to feature as one of the best market players and even best-in-class in due course, consider that the positive trend is already there.

Then total cash flow, well, you clearly see the contribution, EUR 71 million in terms of cash absorption for M&A transaction, and EUR 60 million, that is the impact of IFRS 16. Clearly, those 2 elements were not factored in our guidance for the full year and was not factored in, in our plan.

On the following page, you see the evolution of our net debt. Again, at the 30th September 2019, amounted to EUR 2.96 billion, up by EUR 568 million versus end of 2018. As you can see, the net debt-to-EBITDA remains unchanged -- ratio remains unchanged, so 2.9x. Also considering the impact of our M&A transaction completed, of the IFRS 16 and the consolidation of del Fiora, we expect net debt to EBITDA to remain between 2.9 and 3 for the full year 2019. As for the debt structure, 80% of our debt is fixed rate, average cost is flat, 2.16%. Average term, 5.6 years. I've already mentioned the ratings. Fitch and Moody's ratings were confirmed in the first part of the year.

So this is it as far as I'm concerned, and we are certainly happy to take your questions now.

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Questions and Answers

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Operator [1]

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(Operator Instructions) The first question by Javier Suarez, Mediobanca.

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Javier Suarez Hernandez, Mediobanca - Banca di credito finanziario S.p.A., Research Division - Research Analyst [2]

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I got a number of questions, in fact. The first concerns your guidance, the increase of your EBITDA guidance for 2019. The previous was plus 7% and now you're talking in excess of 10% growth. I understand that most of this growth is due to the fact that you consolidated Acquedotto del Fiora. If this is so, can you please confirm that? Or is there anything underlying that suggests that increase of your guidance? And this is my first question.

Second question, when you said that if you do not consider the IFRS 16 impact, the consolidation of del Fiora Acquedotto, the net debt guidance will be in the low part of the range. I was wondering why? Why do you see an improvement in your guidance for the underlying net debt?

And then the third question is the negative impact of the working capital, minus EUR 118 million. You expect a range between 0 and minus EUR 50 million in due course. What are the managerial actions that would lead to such a substantial reduction of the working capital in Q4?

And then referring to Page 12, I see a substantial increase of depreciations and write-downs. Can you explain why, leaving aside Gori, of course?

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Giuseppe Gola, ACEA S.p.A. - CFO and Director of Finance, Administration & Control [3]

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Very well. So I'll try and explain these points more clearly because I already mentioned all these points during my presentation. As for our EBITDA guidance, we said that our EBITDA will grow more than 10% for the full year. And July, we said more than 7%. So all in all, we can say that the expected growth of EBITDA is roughly EUR 30 million, EUR 3-0 million, if you compare it with the previous guidance we provided. This improvement of the guidance -- EBITDA guidance is certainly contributed to by the consolidation of del Fiora, roughly EUR 15 million, EUR 1-5 million, so half of the figure. As for the rest, all the rest is well in line with our expectations and with the performance trend of the group. So as far as Q4 is concerned, we do not expect any unexpected event. In Q3, however, we also considered the accrual of EUR 16 million that was the result of the cancellation of the fine of the antitrust authorities. So all in all, we can say -- it's fair to say that our expectations for the full year is a growth of EBITDA by EUR 30 million. We may do even better than that because we're optimist.

As for our net debt guidance, we have been conservative and we want to, again, confirm this net debt guidance, net of those impacts that we mentioned really hadn't considered. In our range, again, we aim at the lowest part or the lowest figure of the range, and this can be achieved by improving the performance in -- of our working capital. So the minimum figure or the lowest figure of the range is compatible with minus EUR 50 million for the working capital, so the 2 results are linked.

As for the management actions that we put in place to improve our working capital, well, we do not expect to put in place any different action that we have done so far in Q4. The capital -- working capital is seasonal in nature. So there are certain quarters where we have a positive working capital and other quarters where there's more cash absorption. So the best way to interpret the figure on the working capital is consider the full year results because this, of course, offsets the seasonal nature of working capital. These results are positive because we managed to generate cash. I do not expect to see a substantial growth of our cash generation in Q4. Because in Q4 last year, there were some drivers that improved our performance, which we have already consolidated in Q3 this year. So in Q4, we expect an improvement of -- on the previous quarters but slightly lower than Q4 2018. This means that there might be 0 absorption of our working capital, up to EUR 50 million, as I said, which in my opinion, a very, very good result. But having a stable trend quarter-on-quarter due to our -- the seasonal nature of working capital, certain CapEx, for instance, is concentrated on certain periods of the year, so -- or payments that may take place 3 up to 6 months after the investment is made. This is the, again, seasonal nature of CapEx. As for cash ins, the -- we don't cash in as we do with our clients. There are certain amounts that can be cashed in only in certain periods of the year. This is why, again, our working capital is seasonal in nature. I don't know whether that was clear.

I'm sorry, there was -- I think there was another question on depreciations and write-downs. Well, the difference is again due to Gori consolidation only, so EUR 7 million. So net of these, provisions would be exactly the same. I can tell you that our provisions are very conservative. So the reduction of provision due to the improvement in credit collection will be much more felt going forward because, again, we do not report it in our P&L, the better performance immediately.

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Operator [4]

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Next question by Enrico Bartoli, MainFirst.

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Enrico Bartoli, MainFirst Bank AG, Research Division - MD [5]

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I've got a number of questions. First, I would like to start with the supply business. If I understood it correctly, the tax comparison of -- in the regulated business due to unpaid should decrease, and you are increasing the number of nonregulated clients that should contribute to improvement of margin. Is that correct? Can you confirm it? And is this trend the trend that we'll be witnessing in the 2020, too? So can we expect 2020 to be better than 2019 from this point of view? And then I got a question about water reports that you have published. What impact this can have on your business, especially in terms of OpEx and low return. Can you provide us the RAB of del Fiora Acquedotto?

As for the provisions and D&As, can you provide us with your estimate for the full year? And then as for CIP6 feed-in tariffs, what is the impact of -- you expect for full year 2019? And then I guess that in the first H of next year, it will be difference that was not there this year. That will be offset by contribution of new plants. So in other words, what type of evolution do you expect for EBITDA for that business in 2020?

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Giuseppe Gola, ACEA S.p.A. - CFO and Director of Finance, Administration & Control [6]

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So as for the supply business, you are correct. We have an improvement to margin. If you look quarter-by-quarter, starting Q3 last year, we have generated roughly EUR 16 million per year. Our expectation for Q4 is a slight increase. And the impact is mainly related to the growth in the number of nonregulated clients. We can expect the same for next year, too. However, you have to consider, paradoxically as it may sound, that the improvement in credit collection of Acea Energia, especially in the regulated market, will lead probably to a further reduction of the unpaid percentage. So it will have a slight negative impact, in other words. However, all in all, we are growing, so we have a positive trend.

As for the water business, we are still at a preliminary stage. To the best of our knowledge, there won't be any particular problem. We have already replied. We expect also second document that may be issued. In the next future, we will have clear picture of the impact on our business. Currently, there's no such visibility as yet.

As for -- then I'll go back to the RAB of the del Fiora Acquedotto. As for our provision evolution, what I can say is that figure we have reported for the first 9 months won't change much for the full year. So there won't be any major deviation from the current trend. As for our CIP6 feed-in tariffs, you are absolutely right. Next year, there will be an impact on the first year half. Clearly, there will be no plants generating EBITDA. We are taking action so that new plants and more efficient plants, too, can offset, as well as the new plants that will be acquired by the end of the year and next year, will offset this impact for the full year. Of course, I would not provide a guidance as yet on this, but this is more or less our plan. And then del Fiora RAB. As for del Fiora RAB, it's EUR 198 million, EUR 198 million.

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Enrico Bartoli, MainFirst Bank AG, Research Division - MD [7]

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Just a follow-up question about what you said about write-downs. So full year write-downs will be in line with the first 9 months. So will be -- would they be increasing? That will be, of course, proportionate.

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Giuseppe Gola, ACEA S.p.A. - CFO and Director of Finance, Administration & Control [8]

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I'm sorry, maybe I wasn't clear. As for our provisions, we expect a provision for Q4 that is for a provision that we use -- we manage -- we use it to manage early retirement. But this is a one-off item that we have in Q4 and that we have every year, every year. Last year, this figure was roughly EUR 20 million.

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Operator [9]

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Next question by Emanuele Oggioni, Banca Akros.

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Emanuele Oggioni, Banca Akros S.p.A., Research Division - Analyst [10]

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I got a couple of questions. First question, about the market business. You mentioned the growth of 8%, if I'm correct, for electricity clients and 6% for gas clients. I'd like to understand whether this growth -- because you are getting market share, you are outperforming the market as well. So how can you -- what can you expect for 2020, considering the forthcoming liberalization and the delay that can be expected? So what is your view about the operating leverage? And how margin could improve in 2020 as a consequence? So that was my first question.

My second question refers to the waste business, and particularly to the authorization process. Is all well on track? Is there any delay as far as authorizations are concerned?

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Giuseppe Gola, ACEA S.p.A. - CFO and Director of Finance, Administration & Control [11]

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Well, first of all, our performance -- sorry, our performance is -- was a steady trend in terms of new clients acquired. Clearly, this increase must offset the churning rate. And here, we are in line with the market and the drop in the number of so-called protected clients. So we do expect this trend to continue, and we expect margins to improve as a consequence. As I said, the improvement of margin will partially offset by a drop in tariffs of the announced protection market. That is the tariffs applied to the enhanced protection market clients, so the so-called RCV tariff.

Then as we said during the presentation of our strategic plant, we are not so much focused on the authorization of new plants, which doesn't mean that we are not interested in it. But we realized that the process is so time-consuming and so difficult to -- but this is not the right way to grow in this business. That's why to grow, we are focusing on M&As. So whenever possible, we revamp and improve the capacity of the existing -- and the efficiency of the existing plants, and then we'll be focusing on the acquisition of new plants that were submitting -- supporting growth. We are currently at 1,700 tonnes of waste treated -- we could exceed 2 million tonnes of waste that's treated in our plans with the new acquisition. So we'll be increasing from 1.7 million to 2 million tonnes of waste treated.

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Operator [12]

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(Operator Instructions)

Mr. Gola, Mrs. Angrisani, there are no more questions.

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Elvira Angrisani, ACEA S.p.A. - Manager of IR [13]

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Then thank you very much for attending our conference call. So we can, of course, be contacted for further questions. Thank you very much.

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Operator [14]

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This is the Chorus Call operator. The conference call is over. You can disconnect now. Thank you very much.

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