Good morning ladies and gentlemen and welcome to NL Chile's third quarter and nine months 2026 results conference call. My name is Victor and I'll be your operator for today. During this conference call we may make statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include MLChile S.A.'s current expectations, intentions, plans, beliefs, or projections. Forward-looking statements are based on management's current assumptions and expectations. Do not guarantee future performance and involve risks and uncertainties. Actual results may differ materially from those anticipated. and the forward-looking statements as a result of various factors. These factors are described in Enochita's press release on its third quarter and nine months 2026 results. In the presentation accompanying this conference call and Enochita's annual report on Form 20F under risk factors. You may access our third quarter and nine months 2026 results, press release and presentation on our website www.no.cl and our 20F on the SEC's website www.sec.gov. Readers are cautioned to not place undue reliance on those forward-looking statements, which speak only as of their dates. NO Chile undertakes no obligation to update these forward-looking statements or to disclose any development as a result of which these forward-looking statements become inaccurate, except as required by law. I will now turn the presentation over to Mrs. Isabela Klemes, Head of Investor Relations of NO Chile. Please proceed.

Buenos dias, good morning, and welcome to NL Chile's third quarter and nine months 2026 results presentation. Thank you for taking the time to join us today. My name is Isabela Klemes and I'm the head of Investor Relations. Joining me today are our CEO, Gianluca Palumbo, and our CFO, Simone Conticelli. Our presentation and related financial information are available on our website. In addition, a replay of the call will soon be available. At the end of the presentation, there will be an opportunity to ask questions through the webcast chat using the Ask a Question link. Gianluca will begin by covering the key highlights of the period, our portfolio management actions, and recent regulatory developments. Simone will then provide an overview of our business economic and financial performance. Thank you for your attention and I will now hand the call over to Gianluca.

Thank you Isabella, good morning everyone and thank you for your joining us today. Let me start with the main highlights of the period. First, let me turn to portfolio management. During the third quarter, hydrological conditions improved significantly, especially in August and September, following exceptionally dry hydrological conditions through July. Strong rainfall supported hydro production, while non-conventional renewable generation also increased compared to last year. Turning to our medium-term strategy, our battery energy storage project Remain on track with approximately 0.6 gigawatts under construction. In August, we started construction of the 100 megawatt Finisterra batteries project, the fourth grid-forming base of our portfolio. Additionally, last week we performed the first synchronization of the La Salinas base. Let's now move to country and regulatory context. The national reconstruction law was enacted, supporting national investment conditions through tax incentives and economic reactivation. In addition, the electricity grid reform is under discussion, with working groups ongoing between the authority and the industry. The government is expected to submit a bill to Congress in March 2027. We see this as an opportunity for a structural reform of a distribution framework that, once defined, could address the need arising from electrification, digitalization, and grid resilience, and especially enable new long-term investments. Finally, let me turn to business performance. Our nine-month results remain resilient with EBITDA and net income above the prior year. Our FFO increased by 25% compared to the same period last year. We also maintained a sound liquidity position, which allowed us to execute our CAPEX plan while maintaining financial flexibility. In the next slides, we will go deeper into each of these areas and the key drivers behind these results. Let's now move to slide 4 for a closer look at our hydrological conditions and hydro generation. As shown on this slide, hydrological conditions improved significantly in August and September after a prolonged period of severe dryness After taking close to historically dry conditions through July, hydrology improved markedly from August onward. Cumulative rainfall in Maule and Biobio basins is now above historical averages and well above the dry historical scenario mainly due to a strong El Niño event. In fact, regarding our reservoir levers, proactive reservoir management allowed us to manage stronger inflows responsibly, avoid extreme weather discharge, and protect downstream communities. This is an important example of how operational discipline and responsible weather management work together. As a result of this strong rainfall improvement, hydro generation increased 88% from 2.1 TWh in the second quarter to 3.9 TWh in the third quarter. Nine-month hydro production reached 8.2 TWh 3% above last year, offsetting the weaker hydrology early in the year. At this point, it is worth noting that reservoir levers recovered significantly during the third quarter of this year. In fact, our Rasco and Pange power plants are currently operating at 100% capacity in the Biobio region. Finally, regarding the upcoming melting season, images of the Maule and Laja basins show an important recovery in snow accumulation during the third quarter. According to the latest forecasts from the National Electricity Coordinator, The outlook represents a 43% probability of exceeding scenario for the 2026-2027 snow melt season, which is broadly consistent with average hydrological conditions. Currently, we are also complementing conventional monitoring with sensors and artificial intelligence to improve visibility on snow levels and other availability. And now let's move to slide five, where we will review the progress of our strategic projects in the generation business. Our best projects demonstrate how we are enhancing the value of our renewable portfolio through disciplined investments in advanced storage solutions and grid support technologies. I will explain now how. We currently have four BEST projects under construction, representing approximately 0.6 GW of storage capacity. La Salinas, a 206 MW BEST project integrated with a hybrid wind and solar facility, recently achieved its first synchronization to the national grid. Valle del Sol, which will add 153 MW of storage capacity to its existing solar plant, Azapache, which will incorporate a 94 MW-based project into its hybrid wind and solar platform, and finally Finisterrai, our most recently launched project, which will add 100 MW of storage capacity to its existing solar facility. This project goes beyond adding storage capacity. By incorporating grid forming technology, they bring capabilities that will play an increasingly important role in enabling a more flexible, resilient and reliable over Chilean power system. Notably, La Salinas will be the first grid-forming base in the country, a milestone for Chile's energy transition. Importantly, these projects were designed with grid-forming capabilities ahead of the new requirements introduced this year. In simple terms, grid-forming technology allows a battery system not only Thank you very much. Thank you. helping the system better manage disturbances and recover more quickly. As Chile continues to increase its share of renewable generation, technology such as grid forming will play an increasingly important role in ensuring a secure and reliable power system. Las Salinas, Valladolid and Azapache are expecting to begin commercial operations during 2027 while Finisterra is expected to enter operation in 2028. So, these investments increase portfolio flexibility, reinforce security of supply and support our long-term value creation objectives. Now, let us move to slide 6 to review our generation mix and energy balance.

Let me now turn to our generation mix.

As shown in the charts on the left, our net electricity production increased during the first nine months of 2026, driven by improved hydrological conditions and a stronger renewable generation mix, which contributed to a stronger energy balance. Hydrogeneration reached 3.9 terawatt hours in the quarter, increasingly by 1.3 The change in thermal output reflects the flexibility of our integrated portfolio, enabling us to optimize our generation mix while supporting sea stability requirements and efficiently adapting to change market conditions. In this context, we would like to highlight the inertia provided by thermal plants, which is essential for system stability and has proven to be very necessary for the system this year. However, this service is currently provided without economic recognition. We expect authorities to promptly recognize this new operating reality and establish price signals through services aimed at enhancing system reliability and flexibility. Moving now to our energy balance. Physical sales remain broadly stable, totaling 22.3 TWh during the first nine months of 2026, in line with the 22.7 TWh recorded in the same period last year. Our diversified sourcing portfolio enabled us to fully capture the benefit of improved hydrology while maintaining a solid commercial position across both regulated and free market customers. This difference compared to the previous year was driven by a decrease in free market sales Partially reflective lower demand, mainly from mining customers, among others. On our portfolio mix. Portfolio flexibility continues to be one of our key competitive advantages. During the first nine months of the year, production increased slightly to 70.0 TWh, primarily driven by strong hydro generation. As a result, our generation mix remained highly competitive and increasingly supported by renewable and emission-free resources. Regarding sport performance, improved hydrology and high internal generation significantly reduced our reliance on market purchases. NetSport purchases declined by 1.6 TWh in the third quarter and 1.3 TWh over the first nine months, mainly during solar hours. This was partially offset by a moderate increase in purchases from third parties. And now, let me move to slide 7 and provide an update on our distribution business. Quartet was marked by progress across key regulatory initiatives, while continued investment in grid modernization and resilient supported operational performance. Let me start with the regulatory milestones on the left-hand side of the slide. Regarding the BID 2020-2024 process in September, the SEC issued the Type Normalization Report, determining the amounts This is an important step in resolving past tariff differences and provides greater visibility on the recovery process. Turning to the VID-2024-2030 tariff review, the process remains ongoing. Following the Regulator's technical report issued in January, Enel Distribution submitted its comments. The next relevant milestone is the regulator's financial report, expected in the fourth quarter of 2026, followed by the expert panel and the final report in 2027. In parallel, two key regulatory initiatives continue to advance. The first is defining the technical details of the investment framework under the Electricity Tariff Protection Bill, particularly for investments in service quality and network resilience. The second is the electricity grid reform, focused on the broader modernization needs of the distribution system. These initiatives are complementary. The first addresses more immediate investment requirements The proposed reform could provide a longer-term framework for grid modernization. Turning now to RAT and SIDE, our indicators show continued execution. Energy distributed increased by 2%, reaching 11.1 TWh. While energy losses remain stable at 6.4%. Remote control equipment increased by 22%, reaching 4.3 thousand units, further strengthening the digital capabilities of the network. At the same time, CapEx reached $122 million increasing by 21% compared with the same period last year, mainly reflecting the early execution of investment aimed at improving service quality and supporting grid digitalization and resilience. This progress was reflected in networks' solid performance during the last winter season and the severe weather conditions in Santiago in recent weeks, supporting service continuity and faster operational response. Overall, while regulatory discussions continue to evolve, we remain focused on modernizing and strengthening the network through Concrete Actions With this, I will now hand over the presentation to Simone who will review our economic and financial performance.

Many thanks Gianluca and good morning everyone. Let me start with our key financial highlights of the period. In September 2026, year-to-date EBITDA reached $1 billion, an increase of 2% year-on-year, reflecting the resilience of our integrated business and the stable performance of our grids operation, while their quarterly beta reached $336 million, remaining broadly stable compared to the last year. In the first nine months of 2026, net income totaled $390 million, increasing 11% year-on-year, supported by improved operating performance and positive DNA effects. while their quarter net income reached $118 million, confirming the growth trend. FFO also delivered a strong performance in the first nine months of 2026, totaling $770 million, an increase of 25% compared to the same period of 2025. thanks to EBIDA resilience and networking capital improvement. Third quarter SFO increased 28% to $271 million, further confirming the positive cash generation performance for the year. We'll go into more detail later in the presentation, so let's move to the next slide to talk about the investment made during the quarter. During the first nine months of 2026, we invested $492 million, doubling CAPEX compared to the same period last year. Our capital allocation remains focused on our strategic priorities, with 63% of investments directed to renewable generation and 25% to strengthening and modernizing the distribution network. The remaining investments were mainly aimed at ensuring the reliability and availability of our thermal fleet. Let me provide some additional details on our investment allocation. In the renewable segment, our investments were focused on the development of our grid-forming best projects in line with the objectives set out in the strategy plan, The optimization of hydro facility performance and the fleet maintenance. In the thermal segment, the priority continues to be the maintenance and performance enhancement of the power plant fleet. Regarding grids, we continued advancing our network modernization and resilient plan, supporting service quality improvement and strengthening distribution network. Looking at CAPEX breakdown by nature, development investment equal to $295 million represented 60% of total spending and were mainly allocated to base which accounted for 79% of the spending, networks representing 40%, mainly driven by development reliability and quality of service investment, and digitalization. and other power plants with a 6% mainly driven by performance enhancement projects. Asset management capex totaled $146 million accounting for 31% of total capex mainly allocated to the maintenance of Atacama Quintero and San Isidro CCGT, The maintenance of renewable slits aimed at ensuring plants availability and some activity for the corrective maintenance and digitalization of grids. And finally, customer capex totaled $52 million mainly invested in low and medium voltage connection projects and initiatives to support load increase. And now let me walk you through the key drivers behind the EBITDA performance during the third quarter of 2026. Our EBITDA reached $336 million in the third quarter 2026, remaining broadly stable year on year. The $9 million decrease compared to the third quarter 2025 is mainly explained by the following factors. Starting with PPI sales, The results were essentially flat compared to the prior year with no material impact during the period. Moving to sourcing, we recorded a negative impact of $16 million, mostly due to energy deceptive from previous periods, higher spot energy purchase costs mainly during July, and lower insurance recovery provisions compared to the 2025. These effects were partially offset by lower natural gas production costs, reflecting lower thermal generation volumes. Regarding gas margin, we recorded a decrease of $10 million, reflecting the contribution from gas organization activity recognized in the third quarter 2025, while in 2026 this activity was largely concentrated in the first quarter. On the other hand, grids and others remain increased by $70 million mainly due to First, higher grids margin contribution driven by new connection activity and other distribution related services partially offset by previous year one-off settlement adjustment recorded in the third quarter 2025 Second, the optimization of the UNM processes And now let's move on to the next slide to review the EBITDA evolution during the first nine months of this year. In the first nine months of 2026, our EBITDA increased from $1,004 million to $1,021 million, reflecting resilient business performance despite the challenging scenario of the first half of the year. Starting with the integrated business, we recorded an increase of $15 million mainly due to gas optimization initiatives that increased for more than $90 million the EBITDA and contributed to optimize the portfolio and lower thermal production costs due to the lower production volumes and lower natural gas costs. These positive impacts were partially offset by lower capacity payments reflecting structural energy market dynamics, including the incorporation of new renewable capacity into the system, higher spot energy purchase costs mainly due to the higher spot price, and the net impact of energy and transmission cost settlements. Moving to grids. EBITDA remained broadly stable, totaling $127 million, mainly due to the higher margin from distribution-related services and the positive impact of exchange rate, partially offset by the one-off positive settlements recorded in 2025. And now let's move on to the next slide to review the net income evolution. In the first nine months of 2026, our net income amounted to $390 million, $38 million higher than the same period last year, mostly explained by First, the already mentioned EBITDA improvement of $70 million Second, the decrease in depreciation, amortization, impairment and bad debt expenses of $40 million, mainly due to Positive effects from impairment charges recorded in September 2025 along with the recovery of value of certain thermal generation assets previously impaired. Partial offset by higher depreciation and amortization for the new renewable assets. Third, the negative variation of $70 million of financial results mainly explained by lower capitalization on generation projects, Negative foreign exchange differences and recognition of financial interest in 2025 related to PEC balances. And finally, the increase of income taxes for $4 million, mostly due to improved results. Focusing on the quarter, net income improved by $12 million, mainly resulting from positive change of $17 million in financial results, mainly due to positive foreign exchange rate effects, lower depreciation, amortization, and impairment expenses of $1 million, mainly due to the last year impairment-related effects on generation assets, partially offset buying. A $9 million reduction in EBITDA as previously explained. And now, passing to the next slide, let's analyze the FFO composition. In the first nine months of 2026, FFO amounted to $770 million. as a result of the following factors. First, EBITDA totaled $1,021 million as previously discussed. Second, we recovered $42 million of PEC receivable during the period. Third, the net working capital decreased by $52 million mainly due to positive effects of payment optimization of development CAPEX, seasonality of energy payments, Partially offset by the increase in annual distribution receivable. 4. Financial expenses amounted to $172 million, including financial costs related to foreign exchange instruments. 5. Income tax payments amounted to $172 million, mainly related to the generation business. Turning to the year-on-year comparison, FFAO increased by $156 million compared to the first nine months of 2025, mainly supported by higher EBITDA, which increased by $70 million, the decrease in the collection of PEC receivables by $243 million, mainly due to the PEC 3 factoring transaction executed in April 2025. The positive net working capital variation of $381 million mostly due to higher commercial debt related to the newly developed capacity, the positive effects of energy payment optimization, and the voluntary compensation paid in 2025 regarding the extreme climate events from May and August 2024. The higher financial expenses for and now let's take a look at our liquidity and leverage position our gross debt reached 3.8 billion dollars at the end of September 2026 decreasing by 1% compared to the gross debt as of December 2025. In terms of debt movements, we amortized $150 million of debt over the period, partially offset by a $40 million drawdown under revolving credit facilities to support working capital needs. In addition, we recognized $28 million of new lease liabilities under IFRS 16. The average maturity over debt decreased to 5.1 years at the end of September 2026 compared with 5.8 years in December 2025. Fixed rate debt represents 84% of total debt compared with 87% in December 2025. The average cost of our debt reached 4.9% as of December 2026, in light with December 2025. Regarding liquidity, we remain in a comfortable position to support our capital needs and meet upcoming maturities. Thank you all for your attention and now I will pass the floor to Gianluca for the closing remarks.

Thank you Simone. Now on slide closing remarks. First, our results were resilient and demonstrated the value of our diversified generation and distribution platform. After weaker hydrological conditions through July, hydrology improved significantly in August and September, supporting hydro generation and a stronger energy balance. Thermal generation has been an important contribution during all year for the stability and security of the system proving inertial, especially in the north. Together with Higher Renewable Generation and our gas optimization initiatives, we delivered resilient earnings and remain on track to achieve our 2026 EBITDA and net income guidance. The expiration of a certain regulated contract and a lower gas margin weighed on the third quarter. Nevertheless, The underlying execution of our integrated business remains solid, supporting our confidence in achieving our full-year targets. Second, regulatory discussions continue to evolve alongside our grid and integrated margin investment plan. On grids, the Electricity Tariff Protection Law and the proposed electricity grid reform On the integrated margin side, Our decision to invest in green farming technology reflects our conviction that system reliability will become increasingly important as Chile advances toward a more renewable generation mix. As Chile moves toward a generation matrix with a higher share of renewable energy, the market framework will also need to evolve to recognize the broader set of services required to maintain system stability and security. We support an open and constructive discussion on these topics, as we believe a well-designed reliability framework is essential to enable further renewable integration while preserving a secure and resilient power system. Third, our portfolio flexibility, solid liquidity and disciplined capital allocation continue to support future growth. Our capex remains focused on executing our best portfolio with around 0.6 gigawatts under construction and clear visibility on future growth opportunities. We do this from a solid financial position. 84% of our gross debt is at a fixed rate. The average maturity is 5.1 years and our liquidity covers upcoming maturities. Looking ahead, we remain focused on execution, financial discipline, and long-term value creation, supported by a flexible portfolio and a solid financial position. Thank you for your attention. I will now hand the call back to Isabella for the Q&A session.

Thank you, Gianluca. Now let's move on the Q&A session. We will be taking questions via chat through the webcast. The Q&A session is open. As we have received some questions that are related to the same topic, I'll try to join all together. Okay, so we have received questions from Alessandro De Vito, Mediabanca, Juan Felipe Becerra from Credit Corp, Andrew McCartney, Larrain Vial, Tomas Peruchin from Balance, So I will start with the first one that several analysts is asking about the hydrology. So Gianluca, I put this for you. So we have basically two questions here. One is, what is the hydrology outlook? Rainfall, El Nino, reservoirs levels, snow melt, and how will it affect hydro generation, export prices, and EBITDA? And also on the same line, Also, the analysts are asking about guidance for 2026 that we have already presented, but if we have any preliminary estimates for 2027.

Okay. Thank you for your question. As I mentioned, after a very challenging first half, we have seen a significant improvement in hydrological conditions since August. First of all, rainfall has no accumulation recovered materially. Second, precipitation continued through October, which further strengthened our hydroavailability going forward. With the year now well advanced, we have much greater visibility and so we expect full-year hydro generation to be between 11 and 12 TWh. That said, and this is an important point, The higher hydro generation should not be translated one to one into higher EBITDA. I mean, a large part of the additional generation is simply offsetting the impact of the drought that we experienced in the first half. And, as you mentioned, spot prices are currently very low, so the economic value of this additional water is also lower than it has been historically. Overall, the strong ideology clearly supports our operational position and reinforces our confidence in the full-year outlook. So, to conclude regarding the 2026, as we said during the presentation, we remain on track to deliver our 2026 EBITDA. and Net Income Guidance. And regarding the 2027, so it's too early to define the guidance on the hydrology of the end of the year.

Okay, thank you Gianluca. Then we have received some questions about the gas, you know, Argentina gas and LNG. So I'm reading one that is looking into 2027, your former Argentina gas contract runs through April. How comfortable are you with your gas supply position beyond that date and do you see any potential supply risk for the year, I mean the 2027?

As I mentioned during the presentation, our current firm Argentina Gas Agreement give us contracted volumes through April 2027. Beyond that, I think it's It's still too early to draw conclusions on gas supply conditions for the rest of the year. So, for commercial reasons, we expect to give you more color with our first quarter 2027 results. What I can add is that there are several variables that we need to consider, hydrological conditions, The evolution of Argentina gas production and exports and overall market conditions. But importantly, our strategy does not rely on a single source of gas. As you know, we manage our needs through a diversified approach that combines Argentina gas, LNG, and active portfolio management. So, concluding, based on the information available today, we don't see evidence of a material supply risk for 2027. And we will continue to actively manage our position as market conditions evolve.

Perfect. Thank you Gianluca. Now I move to you Simone. So we have a question. Actually, two questions. One is regarding the potential one-off accounting effect related to the tax regime change. So, could you explain the impact of the recently approved corporate tax reduction on El Chile and how much of the benefit will be recognized in the fourth quarter, 2026, related to the one-off accounting effect?

Okay, thanks for the question. Of course, the impact will be positive starting and will be recorded in the October closing. There are two kinds of effects. One that is one of effects, and this is related to the deferred tax. With the change of tax rate, we have to re-evaluate the deferred tax, and so we'll have an impact around, I don't know, $11 million. And then there will be Another effect in the next year, so an increase in good effects during the decrease of the tax rate. In this case, the effect will be an increase in terms of net income, but also a reduction of the cash out. So this effect will increase until 2029, and then we will go to an asymptote.

Thank you, Simone. Now I'm going to another one about inertia and also grid forming. So, Gianluca, this is for you. So the framework for inertia is still not very clear. How do you expect inertia services to be remunerated going forward? And what role could grid forming best play in supporting system stability? Actually, just to add on the same Can you provide any guidance on expected remuneration of the grid forming attributes of your BES? So these are the two questions, Gianluca.

Okay, thank you. Let me start by saying that this is a very relevant topic, especially in the northern part of the system, due to renewable penetration keeps increasing. As we mentioned today, thermal units can be dispatched to provide inertia and support system security, but without any specific economic recognition for that service. So, in our view, to ensure reliability and at the same time send the right price signal, inertia should be formally recognized and properly compensated as a system service. And this is exactly where grid forming batteries can play an important role. Our breast projects currently under construction were designed from the start with grid forming capabilities even before the new technical requirements were published during this year. These capabilities allow batteries to contribute to frequency regulation, fault response, and overall system stability. Concluding, we see the regulatory direction on green forming as a positive. At the same time, it's important to move forward with a proper framework that recognizes and pays for the system services needed to ensure security and reliability. At this stage, we are not providing specific guidance on remuneration for green farming attributes. And what I can say on this topic is that the Chilean power market and regulatory framework evolve Storage may capture additional value from capacity remuneration and system support services. However, the contribution of these value streams will depend on market conditions, regulation, project location, and technical characteristics. So, we continue to assess based on It's overall contribution to our integrated portfolio rather than on any single revenue stream.

Perfect. Thank you, Gianluca. Now, Simone, turning to you. So we have received also a question from Alfredo from Inversiones Mantiquit. Why did your company purchase Zenith at high spot prices while the hydropower it generated was sold at lower spot prices? Basically, he's asking about the difference on spot price purchase and sell.

Okay. Thank you, Alfredo. I think that you are referring to the last quarter. That is, it was like a roller coaster quarter. So, at the very beginning, I mean until the 10th, 11th of July, There was few waters to produce for our hydropower plant and in this moment we are in a buyer position. And you know that the price went up. Why? Because it was the last part of very dry season starting at the end of 2025. And so no more water to support the system. Going ahead, starting from the 10th of July, the water was much better, a lot of water, but in this moment the prices went down. And so the selling price of our hydro production was at a lower price, I would say something between 20 and 30 US dollars per megawatt hour.

Okay, thank you. Simone, we have another question now, Gianluca, from Alessandro McCartney. He's asking about when do you expect the definition of the technical detail for the investment framework for the distribution companies under the electricity tariff protection law to be ready?

We expect the authorities to release a detailed proposal for public consultation in the coming weeks.

Okay. Perfect. So we have another one coming. We have also from Jay from Scotiabank and also other analysts that are asking that I will summarize here. As some of our legacy regulated contracts roll off, How are you thinking about reconstructing the portfolio and do regulated auctions represent an attractive opportunity for Enel Chile?

We continue to see commercial opportunities across different market segments, both regulated and free. Our approach is to actively manage the portfolio and place our energy on active terms Always keeping the right balance between returns and risk. On the regulated side, the upcoming auction is certainly one of the opportunities that we are evaluating. We see some of the improvements in the preliminary framework as positive. For example, the greater contractual flexibility, and the mechanism to manage supply obligations. As always, any decision to participate will depend on the final conditions, expected returns, and consistency with our overall portfolio strategy. At the same time, we will keep looking at opportunities in the free market. So for us, it's not about Prioritizing one channel over the other. So it's about finding the right commercial opportunities and creating value through active portfolio management.

Perfect. Thank you, Gianluca. Now we receive one related to BES, Gianluca. So the question is, Can you provide an update on the best projects currently under construction? Should we expect additional battery investment beyond this project or does this complete your currently best development program?

Thank you for your question. As I mentioned during the presentation, our best projects under construction continue to progress according to plan and our focus today is on executing them Successfully, battery storage remains an important part of our strategy because it gives to our portfolio greater flexibility, supports renewable integration, and helps reduce the containment. Looking beyond the project already announced, I don't want to get ahead of our next strategic plan. as we are still evaluating different opportunities. But what I can say is that we will remain very selective and disciplined in our investment decision. Any new investment needs to meet our return requirements and create value for our shareholders. And we will maintain flexibility in how we Thank you Gianluca. Now Simone, this is for you about Yankee bonds.

Any update on how and when you refinanced the Yankee Bond?

Okay, thank you for the question.

I think that it's a little bit premature to talk about specific refinancing measures.

What you know is that we are clearly continuously evaluating the possibility of this liability management. And this possibility goes through, I don't know, issuing a new bond, or some long-term financing or also use or partially use the liquidity to pay part of this bond. The fact is there is something like a trade-off in refinancing early and wait a little bit. Why? Because the current bond as a cost around 4.9% or something less. And in this moment, if we look at the market, for example, a 10 years bond in US dollar, the interest rate should be around 6.2%. But in any case, for a company that has a credit profile The market remains quite liquid and accessible to issue a bond. So in this moment we are keep on working but are not worried.

Okay, thank you Gianluca. Now this is the final question that we have received. About distribution, as the regulatory discussion progress, what specific change would be most meaningful for the NL distribution in terms of tariff recognition, investment incentives, and returns on incremental grid capex?

Regarding the short terms, we expect the implementation of new quality and resilience investments under the law approved in August. In the middle terms, as we have noted previously, we view distribution reform as a key priority for the energy sector. The continued electrification of end-use consumption, particularly through the growing adoption of electric mobility, will require significant investment in distribution networks to enhance grid resilience, increase flexibility, and improve service quality for our customers. In this regard, we believe the Ministry of Energy's proposal is broadly moving in the right direction, as it transitions toward a regulatory framework that better reflects actual asset investment and incorporates performance-based incentives.

Thank you Gianluca, thank you Simone. So as there are no further questions, I would like to conclude this results conference call. Let me remind you that the investor relations team remains available to address any questions you may have. Thank you for your attention and we look forward to seeing you soon again.

Thank you for your participation in today's conference. This does include the program. You may now disconnect. Everyone have a great day.