Good morning, everyone. Welcome to our first half 2026 results presentation.

My name is Ezequiel Nieto, Head of Investor Relations. Before we begin, let me briefly draw your attention to disclaimer on the current slide, which sets out the legal framework applicable to today's presentation.

Joining me today are Josep Maria Recasens, Chief Executive Officer of Indra, and Miguel Forteza, Chief Financial Officer of Indra. With that, let me hand over to Reca to walk you through the key highlights of the quarter.

Reca, the floor is yours.

Thank you very much, Ezequiel. Good morning to everybody, right, and thank you for joining the current presentation of the first half results of Indra in 2026.

Actually, it's a privilege to address you today in my first results presentation as Chief Executive Officer, and I fully recognize the responsibility that comes with this role. The results that we are presenting today are a result of the work carried out by our teams during the first half of the year.

I want to acknowledge and recognize that work and thank everyone at Indra for the welcome I have received. As you may know, I'm coming from the automotive industry, more than 25 years in the automotive sector, 20 years in the Volkswagen Group, and the last five based in Paris in the Renault Group, right?

I have had different responsibilities in strategy, product, programs, partnerships, and business development, but despite the role were different, the equation was always the same: turning a strategy into execution by making the right product choices, managing programs efficiently and diligently, and delivering on our commitments. That is the approach I bring to Indra.

In my first weeks at Indra, I have focused on what I think matters the most: our teams, our customers, and our programs. What I have found, indeed, is a company with exceptional, outstanding technological capabilities, a strong backlog, talented people, and a real momentum.

My role, in fact, is to accelerate that execution. Let me now turn to the environment in which we have to do that.

Actually, every time I join a new venture—and this is a very particular one—I like to understand which is the environment and context I have to operate. In fact, I have identified a total of eight challenges, right?

Actually, our industry is at the same time facing both more challenges and opportunities than ever before. First, geopolitical instability and polarization are reshaping the global security environment.

Governments are reassessing the capabilities they need to protect their citizens, their infrastructure, and their strategic interest. Energy security and resilience have also become part of our national security.

The question is no longer only how much energy costs, but whether is it available and secure when it is needed. As a consequence, we are experiencing a sustained increase in defense spending.

The 27 EU member states spend more than €400 billion on defense in 2025, 20% more than in 2024. In 2026, that figure is expected to reach €450 billion, according to the latest European Defence Agency report.

This is not a temporary spending cycle; it is a structural change in priorities. At the same time, shortages of critical raw materials and pressure on global supply chains are forcing Europe to reconsider its dependencies and strengthen its industrial capacity.

That is why sovereignty has moved to the center of government agendas. Governments are asking not only what capabilities they need, but also where they are designed, where they are produced, and who controls the technologies behind them.

In this context, scale and innovation are decisive competitive advantages. Developing excellent technology is not enough.

Companies, and this is what Indra aims to be, must be able to industrialize it, produce it reliably, and deliver it on time, at the required quality, and at a competitive cost. Civil and military technologies are also converging, and converting really, really fast.

The traditional 5 to 10 year development cycle in defense no longer matches the speed at which threats evolve. Ukraine has shown how commercial drones and satellite communications can be adapted to battlefield needs in months, not years.

Disruptive technologies such as artificial intelligence and quantum are accelerating this transformation even further, reshaping how systems are designed, how decisions are made, and how capabilities evolve. Together, these forces are redefining our industry.

For a company like Indra, this environment is not a threat. Actually, it's our moment.

Every one of these forces points to greater demand for precisely what we do. Capturing that opportunity and turning it into results will depend on execution.

Given this context, we have defined four clear principles to guide how we operate. The first is delivery and speed.

Our credibility is earned by delivering on our commitments, on time, and with full control of every program. That means managing milestones by milestones, anticipating bottlenecks, and taking decisions faster.

In programs such as land vehicles, drones, and radars, the challenge is clear: increase our delivery capacity and convert demand into industrial output. The second is quality and reliability.

In our businesses, quality is not an option. We work on systems that must perform in critical environments over very long cycles.

Eurofighter is a good example. It is not a program measured in months, but in decades.

It requires the same level of excellence, mission after mission, and upgrade after upgrade. Speed is again essential, but speed cannot come at the expense of reliability.

The third is sovereignty. Technologies like IndraMind keep critical capabilities in our hands, in our country's hands, and in Europe's hands.

The fourth is competitiveness. Being sovereign is not enough.

We must also be competitive in cost, in lead time, in quality, in technology, and in international ambition. Air traffic management proves that Indra can compete globally and win.

That standard must guide us across the group. Underpinning all four is our industrial footprint and ecosystem.

Our plants, engineering centers, suppliers, and partners must operate as one single system. These are our four management principles: deliver faster, deliver with quality, control critical technologies, and compete globally.

That is how we will turn a strategy into execution and backlog into results. With that, let me turn to our first half performance.

With that strategic context in mind, let me now turn to the key operational and financial highlights of the semester. The results for the first six months of the year demonstrate the consistent execution of our strategy and the continued progress we are making to deliver our annual targets.

In particular, the second quarter marked a clear step-up in performance, with a further acceleration in growth and continued margin expansion across the group, underscoring our ability to deliver profitable growth while maintaining a strong operational discipline. Before taking a closer look at our financial performance, let me briefly highlight some of the key milestones achieved during the first half of the year.

In the United States, we strengthened our industrial footprint with the opening of our Center of Excellence in manufacturing in Kansas, while also commissioning the first radar for the FAA, a significant milestone that reinforces our position in the air traffic management market. In defense, execution remained strong.

With TESS, we have delivered in half a year more than the full year 2025, and this is a statement we want to keep going on. We also continue to expand our ecosystem of strategic partnerships through agreements with leading industry players such as BAE Systems, Rheinmetall, NATS, Iveco, and Kongsberg.

These collaborations further enhance our technological capabilities, broaden our market access, and strengthen our long-term growth opportunities. In terms of commercial activity, we secured important contract awards, including radar projects in Congo and the Transport for Washington contract in the United States, further supporting our future growth outlook.

Finally, we continued to advance our portfolio optimization strategy through the divestment of non-core assets, completing the sale of Minsait business consulting division and reinforcing our focus on core businesses. Let me now turn to our financial performance and walk you through the key results for the first half of 2026.

Order backlog reached a record height €20.5 billion, more than doubling year on year with 117% increase. At the same time, order intake grew by 58% to €5 billion, driven primarily by the strong momentum in defense and the contribution of Hispasat and Hisdesat, following their integration into the space business.

Revenues increased by 30% year on year to €3.2 billion, supported by an outstanding growth in defense, which more than doubled its revenues, and by a continued expansion in air traffic management. Importantly, this strong revenue performance was accompanied by improved profitability.

EBIT margin reached a 9.9%, up 1.3 percentage points versus the first half of 2025, and 10.6% excluding the impact of TESS consolidation. In absolute terms, EBITDA and EBIT increased by 22% and 51%, respectively.

Net income amounted to €219 million, representing a 2% increase versus the first half of last year. Free cash flow reached €1.5 billion, compared to the €65 million in the same period of 2025, fully explained by the prepayments received in January 2026 from the special modernization programs.

As a result, we close the first half of 2026 with a strong balance sheet and a net cash position of €1 billion, implying a net debt/EBITDA ratio of -1.3 times, providing significant financial flexibility to support our future growth ambitions. Looking to the second quarter on a standalone basis, we saw a clear acceleration in revenue growth, driven by the strong performance across all our divisions.

Defense was particularly noteworthy, delivering exceptional triple-digit growth of 103%. This solid top-line performance was also reflected in profitability.

EBIT margin reached 10.7% in the quarter, an improvement of 1.8 percentage points compared with the second quarter of 2025. Let me now turn to our first half sales performance.

During the period, we achieved revenue growth of 30% in local currency and 16% on an organic basis. This performance was supported by both solid organic growth and the contribution from our recent acquisitions, while FX had a marginal impact on reported revenues.

Moving now to the divisional breakdown, I would like to highlight the continued transformation of our business portfolio. Aerospace and defense now represent more than 71% of the group's EBIT, as illustrated on the chart on the right-hand side, underscoring the strategic importance of these activities and their growing role in driving value creation across the group.

Looking at our workforce metrics, headcount decreased by 5% to 58,383 employees, mainly driven by the 12% reduction in Minsait. More importantly, this evolution has accompanied by a substantial improvement in productivity.

Revenue per employee increased by 30% year on year and by 21% compared with December 2025, highlighting the benefits of our portfolio transformation and the greater efficiency of our organization. With that overview of the group's results, let us now take a closer look at the performance of each division and the key factors driving growth and profitability across the portfolio.

Starting with the defense business, the first half of 2026 confirms the strength of the business in all key performance indicators. Order intake increased by 120%, further reinforcing long-term visibility.

Revenues more than doubled year on year, supported by a successful ramp-up of major programs already in execution. Lastly, profitability remained at sector-leading levels, with an EBITDA margin of 20.9% and EBIT margin of 17%, excluding the TESS impact.

Looking specifically at the second quarter, defense delivered a particularly strong quarter, with program execution accelerating significantly. Order intake increased by 195%, driven by Eurofighter, air defense, and PEMs.

This was accompanied by a remarkable revenue growth of 156%, supported by the ramp-up of the TESS VCR 8x8 deliveries and the strong execution of major programs already underway. Profitability remained resilient, with EBITDA and EBIT margins of 19% and 16.6%, respectively.

Following with space, the first half of 2026 marks a transformational period following the integration of Hispasat and Hisdesat, significantly expanding the scale and strategic profile of that division. Order intake increased by 98%, while the backlog reached €2.9 billion, providing a strong long-term visibility.

Revenues grew by 398%, primarily reflecting the first full half consolidation of Hispasat and Hisdesat. Importantly, this integration has also reshaped the division's profitability profile, with the EBITDA margin improving to 40.5% and the EBIT margin reaching 10.6%.

Looking at the second quarter, the space division continued to showcase the new operation scale of the integration of Hispasat and Hisdesat, with order intake growing by 110% and revenues by 403%, driven by the strong contributions across Spain, America, and Europe. This effect was also reflected in profitability, EBITDA and EBIT margins improving to 42% and 14.2%, respectively.

Turning now to air traffic management, the business delivered another strong set of results in the first half of 2026. Order intake increased by 57%, driven by a strong momentum in America, AMEA, and Spain, further strengthening the division's growth outlook.

Revenues increased by 16%, while organic revenue growth reached 15%, highlighting the underlying strength of the business. At the same time, profitability continued to improve, with EBITDA and EBIT margins increasing to 15.2% and 12.6%, respectively.

Focusing now on the second quarter, air traffic management delivered another solid quarter, with order intake up to 84%, driven by strong bookings across AMEA and Europe, while revenues advanced 15% in the quarter. The division also delivered a further improvement in profitability, with EBITDA and EBIT margins reaching 13.9% and 11.9%, respectively.

Looking at mobility, the key highlight of the first half was the outstanding commercial performance delivered by the division, as order intake more than quadrupled year on year, increasing by 317%, supported by several landmark awards like the Transport for London contract, the Saudi Rail maintenance program, and the Transport for Washington contract. These awards drove an increase in the book-to-bill ratio to 5.40 times, compared to the 1.25 times in the first half of 2025, providing a strong revenue visibility for the coming years.

Moving on the second quarter, mobility delivered another solid performance, with order intake increasing by 92% and revenues growing by 2%, while profitability reflected EBITDA and EBIT margins of 2.7% and 2.6%, respectively. Finally, let me conclude the divisional review with Minsait, which delivered a resilient performance in the first half of 2026, with revenues increasing by 3%, while organic growth accelerated to 5%, driven by the strong performance of public administrations and healthcare.

Order intake rose by 2%, maintaining a healthy book-to-bill ratio of 1.19 times. Furthermore, profitability remained stable, with an EBIT margin of 5.8% and operating margin standing at 6.9%.

Zooming in on the second quarter, public administrations and healthcare remained the main growth driver, supporting a 4% increase in Minsait revenues and an acceleration in organic growth to 8%. Order intake was up to 2%, while EBIT margin was sustained at 5.8%, highlighting the business's ability to preserve profitability while continuing to grow.

I will now hand over to our Chief Financial Officer, Miguel Forteza.

Thank you, Reca, and good morning, everyone. Starting with the free cash flow, the first point to highlight is that in the first half of 2026, the company achieved an exceptionally strong free cash flow of €1.5 billion, compared with €65 million recorded in the first half of 2025.

As we explained during our first quarter results presentation, this increase is entirely driven by the prepayments received in January under the 2025 special modernization programs, or PEMs. After deducting the amounts already invested in these programs, the net impact of these prepayments at the end of June stands at €1.7 billion.

As these funds are progressively deployed to execute the corresponding programs, reported free cash flow will naturally moderate over the coming quarters. That said, during the second quarter, we unlocked additional PEM-related prepayments, which partially offset this expected reduction.

Additionally, as a reminder of a point we discussed also in the first quarter presentation, since the beginning of 2026, we have stopped using factoring at quarter end, given our current cash position, as this instrument no longer provides an efficient source of financing. For reference, factoring historically represented approximately €187 million at the close of each quarter.

For this reason, and to facilitate a like-for-like comparison with previous periods and with our full year guidance, the chart on the right reconciles reported free cash flow of €1.5 billion to a comparable free cash flow of €15 million accumulated in the first half of 2026, adjusting for both the net effect of PEMs prepayments and the impact of factoring. While this comparable free cash flow is below the €65 million generated in the first half of 2025, the difference is fully explained by the higher levels of capex and working capital required to support the execution of our growing backlog.

These investments reflect the strength of our business and the ramp-up of major contracts already awarded. Importantly, this temporary effect does not change our expectations for the full year, and we remain fully confident in delivering our guidance of more than €375 million of free cash flow in 2026, excluding the impact of PEM-related prepayments.

Regarding the working capital, the evolution of days of sales shows an extraordinary year-on-year improvement, mainly explained by the prepayments received under the special modernization programs, -118 days of sales, and to a lesser extent, by the positive net effect of days of sales resulting from the consolidation of Hispasat and Hisdesat, that is -26 days of sales. As a result, in the first half of 2026, we reached -110 days of sales, compared with 6 days recorded in June 2025.

We will now analyze the evolution of net financial debt in the first half of 2026. The company closed the first half of the year with a net cash position of €1 billion, compared with a net debt of €583 million recorded at the end of 2025.

This change is primarily explained by the prepayments received from the PEMs, which amounted to €1.7 billion in the first half of the year. In addition to this impact, it's worth highlighting the strong operating cash flow of €444 million, compared to €219 million in the first half of last year, reflecting the solid operational performance of the business.

At the same time, capex increased significantly to €183 million, in comparison with €14 million first half of 2025, in line with the group's commitment to its industrial transformation strategy. Lastly, the sale of the BPO business generated proceeds of €70 million, which is also reflected in the financial investments, FX impact, and other items bar shown in the chart.

This transaction is fully aligned with our strategy of divesting non-core IT activities and further increasing our focus on aerospace and defense. As a result of the factors discussed, the net debt-to-EBITDA leverage ratio improved to -1.3 times at the end of the first half of the year, compared with 0 times in the same period last year.

Finally, regarding our debt profile, we continue to make progress in reducing the cost of our gross debt, which declined to 3% in the first half of 2026 from 3.1% in the same period last year. At the same time, the average debt maturity extended to 3.8 years, compared to 3.1 years in the first half of 2025.

Lastly, the consolidated cash position stood at €2.5 billion, primarily reflecting the advance payments received under the PEMs previously mentioned. In addition, the group has €949 million of available committed credit facilities, including a €385 million financial facility from the European Investment Bank for specific uses.

With that, we conclude the financial review, and I will hand back to our CEO for his closing remarks.

Thank you very much, Miguel. Ladies and gentlemen, let me close where I began.

We are building on a solid foundation: robust financial performance, a competitive product portfolio with proven demand across all markets, from radars to electronic warfare, and above all, highly qualified people. That foundation gives us the capacity to be ambitious.

Now, the priorities are clear. We must turn the growing demand for technological and industrial sovereignty into sustainable growth.

We must scale artificial intelligence through IndraMind as our sovereign platform and a business in its own to respond to our clients' needs, and embedding AI in our products, such as command and control, payments, or intelligent traffic systems. We must play a leading role in strengthening the Spanish defense ecosystem while deeping cooperation with our European partners.

We must capture more value alongside the several groups' business units, corporate functions, and geosharring technologies, capabilities, best practices. We will set out the roadmap in our new strategic plan, ambitious in its objectives, realistic in its assumptions, and disciplined in its execution.

Until then, the priority is clear: deliver and deliver. Thank you very much.

Thank you. We are now ready for the Q&A session.

Good morning. Thank you for taking my questions, and congratulations on your appointment.

I wanted to know about your capital allocation strategy that has been a lot of speculation in the press about changes [unclear] for some of the international partners at the beginning of June. I would like to know whether you have strengthened your prospects if that happened and what are you doing to develop [unclear]

Sorry, Juan, we are having some difficulties hearing the line. Could you please start since the beginning because we couldn't hear the question?

Hello?

Could you please start since the beginning, please, because we couldn't hear you here?

Hello?

Juan, please, could you please repeat since the beginning because we couldn't hear the questions?

Can you hear me now?

Yes, now is fine. Thank you.

I wanted to ask about your capital allocation strategy in terms of partnerships and industrial investment plans, since there has been a lot of speculation in the press recently about changes of previous management plans, and also whether you will continue looking for bolt-on acquisitions and divesting parts of Minsait. That was the first question.

The second, I wanted to ask about your IndraMind strategy after the US restricted access to artificial intelligence models for international partners at the beginning of June. What are you doing to develop IndraMind, and whether these restrictions have increased your business prospects?

You were targeting, I think, €1 billion revenues in IndraMind by the end of the decade. Thank you.

Look, thank you very much for the question. Regarding our capital allocation logic or strategy, what I would say is the following, right?

We have a massive challenge in front of us in terms of technological disruption and acceleration, speed, and scale in all fronts, right? I'm sure that there is no company on Earth, especially in Europe, that will be capable to manage all that in a standalone basis.

It's going to be crucial to set up alliances with partners, suppliers, and other peers in the European sector to make that happen, right? I insist on the fact I don't believe that nobody alone will make it happen.

Alliances will play a fundamental role, and this is where capital allocation plays a role indeed, right? It's going to be organic and inorganic.

It's going to be using commercial agreements with suppliers, all alliances with partners. This is what exactly we are investigating and exploring under the condition that in our strategic plan we will define our core activities in terms of make-and-buy strategies.

This about the first question. Regarding IndraMind, what I would like to highlight is the relevance role of a business unit like that, right?

To protect our critical infrastructure, it's key, right? Our value proposition with IndraMind is to cover an end-to-end platform AI-native in order to be a solid instrument to capture superior cognitive properties to be capable to automate them and to be capable to be cyber resilient, right?

IndraMind is aiming to cover that end-to-end value proposition, and by doing that we will be in the position to become a leading player not only in Spain, but in Europe, in order to offer AI-at-first solutions for all critical infrastructures in Europe.

If I may, Juan, just to give you some big numbers around IndraMind this year, just to put that in context, last year revenues to IndraMind were €323 million. First half of the year, revenues attributed to IndraMind, €191 million, basically underpinned by cyber security, cyber defense, artificial intelligence, and the IndraMind platform.

Thank you, Juan. Next question, please.

Good morning, and welcome to the company. We've obviously had a CMD in our thoughts for some time now.

Can you give any indication on the timing of that? I sense that there's still a degree of strategic uncertainty.

Are there any parts of the business that you would consider selling, perhaps? We've heard of Minsait being core, non-core at times over the last two to three years.

Maybe just frame if any disposals would be considered. Then just in terms of the timing of the 2026 PEMs, have you any insights or expectations there?

In relation to cash flow, how can you firm up the 2026 capex guidance? Thank you.

Regarding the first question about the strategic plan, of course, there is a lot of attention about that strategic plan, right? I would like just to ask you for a little bit of patience.

It's about 15 days that I'm on duties in the company. I'm trying to catch up very fast in all senses, meeting people, learning about everybody, and understanding all the dynamics and strengths of the company.

As mentioned during the presentation by Miguel and myself, I think that we have a very strong foundation, solid, very solid foundation based on a high backlog and contracts. Our priority at short term right now is to make all that happen in terms of delivery and speed to fulfill our customer expectations in that respect, and this is what we are making that happen.

Secondly, of course, I'm spending with the team time to explore how do we kick the next strategic wave for the company that, of course, is going to be based on what the company has been reaching so far, but probably we will need to strengthen our, I would say, technological differences because I do believe that companies that bet on technology, that create difference and outstanding performance on them, are the ones that are going to succeed. Here, as mentioned before, IndraMind with artificial intelligence is going to be play a crucial role in terms of kind of brain of system of systems and command and control, making all that based on our past experience, right?

Let me remind you that Indra, it's a tech company, right, per se, per definition. With a highly skilled, qualified number of software engineers and developers in the company, we are ultra well-prepared to face all those technological challenges because this is in the DNA of our workforce.

Who can do that better than us? This is the question that we would like to demonstrate.

Regarding the PEMs of 2026, I think that it's more the Ministry of Defense that has the responsibility to announce what and when. We have, of course, our willingness to continue participating proactively and responsibly in the assignment of those PEMs and the consequent execution, but I would rather wait to the announcement that the public administration, in that case the Ministry of Defense, will do at due course.

Yes. Then, Michael, regarding your question on some guidance on capex, let me give you some granularity on that.

First half of the year, gross capex of €205 million, which €136 million tangible, €69 million intangible, grants €22 million, net capex of €183 million. Our guidance is around €300 million for this year.

That, important to mention, not taking into account Hisdesat capex, which is included in this €183 million I already provided, but including Hispasat capex, right? Just to give you a sense of this Hisdesat capex, which by the way, that is fully prefinanced and financed by the Ministry of Industries, is €69 million in the first half.

We expect around investing capex around €100 million in new factories on this industrial footprint that we have been commented. That's important because we are in comparison with last year, where we invested around 2.5%, we expect to increase our capex on revenues at a level of around 4% to 4.3% this year.

Thank you, Michael. Next question, please.

Hi. Thanks for taking my question.

Just first one, I think before in the first quarter, there was this expectation that the defense revenues would track it about a billion by the first half. Just wanted to understand if you can give any comments on what kind of visibility do you have in terms of the defense revenues and any especially on the phasing of the PEMs-driven revenue?

The second one is basically any color in terms of anything to be mindful of when we are thinking about the EBIT trajectory for the remainder of the year, given the second quarter margins are tracking ahead of expectations? Hey.

Thanks a lot. Regarding visibility of revenues in defense, as we were commenting last quarter, we expect to double, right, revenues, which it's been the case.

We showed in defense €973 million, which is 1 103% increase. Basically driven, and can give you some details on that, by PEMs, which brings €217 million; by TESS, €197 million; air defense, around €145 million; the Eurofighter, €140 million; the FCAS, €112 million, just to provide you.

We're talking around the FCAS, and it's important also to highlight that we are talking about the international FCAS, and bear in mind that within the PEMs revenues, this quarter, there was also €67 million coming from the national PEM FCAS PEM, right? Regarding the guidance for the year—

Regarding the guidance, right, as with revenues, we are performing in line with our internal expectations. Remember, we delivered 9.9% margin, and the implicit guidance is 10%.

This quarter so has been particularly strong thanks to defense, with the Eurofighter project having a strong contribution to the defense division's EBIT. Although we expect this division's margin to close the financial year at the levels already announced.

Therefore, we reaffirm our guidance of EBIT of more than €700 million for the full year. We reaffirm all our guidances for 2026.

Thank you. Sure.

Just one quick housekeeping question is basically whether the BPO sale is complete, then we will get an updated guidance excluding that soon, right?

Could you please repeat the question?

The BPO business, which was sitting in Minsait, there was a sale that was announced, which is closed now. As per what we have in the guidance, it says that it still includes BPO.

Will we have a guidance updated for that disposal?

The guidance we provided for Minsait was just taking into account BPO business for 4 months, which been the case. All the guidance that we have of growth and EBIT margins between 6.6% and 7%—this is our guidance for this year—are taking into account the exclusion of the BPO business.

Yes.

Got it. Okay.

Thank you.

Thank you. Next question, please.

Good morning. Thanks for taking my questions.

My first question is you have highlighted that you will continue to look for alliances with the European peers moving forward. My question is if you could reconsider your signed alliance with Hanwha, the South Korean company.

There could be any change in the scope of that alliance moving forward? A couple of questions from an operational point of view, and sorry because with so good numbers, I am going to ask you for space, where organic growth, well, organic revenues are dropping 6% in the quarter.

Could you elaborate a bit on the reasons for this decline in organic revenues in space? On the other hand, Minsait organic growth was very strong, plus 8%.

Do you consider that those levels of organic growth in Minsait could continue through the second half of the year? Thank you.

I'm going to answer the first question, and Miguel will take over the second and third question. About the first one, no news, good news.

It means that we are full engaged and committed to deliver the project with our partner, in that case Hanwha. It's our major responsibility to keep the momentum that we have created in order to fulfill the about 282 objects we have to deliver for the whole full program, and this is of paramount importance, and we will not put that in danger, and is our priority.

Yeah.

Thank you, Carlos, and regarding space. 14% decline in organic, in our organic revenue in space simply due to timing differences in milestones between one year and the next.

In fact, its decline was moderated in the second quarter with a fall of just 6%. We clearly reiterate our ambition to reach more than €400 million by the end of the year.

Also you've seen the EBIT and EBITDA numbers, which looks quite good in terms of EBITDA. We expect to finish the year around 40%.

In terms of EBIT, you know that's quite volatile, as a lack of scale in the business to date around high-single digit. We expect, again, there are some topics that may help the business in the future.

As you very well know, the European Space Agency new budget, programs at European level, clearly IRIS², which should be having some news in the coming weeks, potentially new PEMs this year or next year, and within the new European Multiannual Financial Framework of the next European budget, where clearly space will be one of the main focus. Regarding the expectations for coming revenues, we think that Minsait will end up the year between low-single and mid-single-digit growth, and we have quite confidence on the business keeping growing, especially compared with other peers, we are doing clearly way.

Remember again that Minsait guidance is considering the BPO divestment business, contributing only 4 months. In terms of margins, I already commented our guidance.

Is that okay, Carlos?

Thank you. That was very helpful.

Thank you. Next question, please.

Yes. Good morning.

Thank you for taking my questions. The first one is regarding the guidance.

Can you explain what gives you such a confidence to reach the top-line guidance, given that you were slightly short of your €1 billion defense revenue in H1, and the fact that you are apparently lowering slightly your guidance for Minsait for the year? What's compensating for those two elements in H2?

My second question is could you explain a bit in more detail what were the drivers of the nice margin improvement in defense in Q2, excluding TESS? Should we understand that the PEMs are very profitable, or is it something else?

What do you see for H2? My last question would be we've seen some press article reporting that the company is wishing to conduct a forensic investigation into certain past transactions made by the previous leadership.

Could you comment on that, to confirm or not? If it's confirmed, what's prompting this to launch this investigation?

Thank you.

Thank you, Nicolas. Regarding our confidence on the top line of guidance, €7 billion €700 million.

Clearly, we are fully confident on achieving that guidance, even if Minsait goes from low to mid-digit growth. In any case, we have room from defense and ATM guidance to compensate, we stress our commitment and reliable on achieving this guidance.

Regarding the higher margins on defense, true that they were maybe slightly higher than expected, especially if you take the dilution effect of TESS, which reached 21.3%, with a greater contribution from the Eurofighter project in terms that you know that we have different sources within this project, and some of the sources of revenues are higher, they have higher margin than others, which has been the case this quarter. Obviously, clearly, as we have been stating over the past weeks, PEMs margins are in line with our defense margins, right?

We don't rule out these margins, especially in defense, to moderate slightly over year end and to end up around 18%, 19% end of the year, excluding again the effect on TESS.

About the last question, we will not make any comment about that.

Okay. Thank you.

All right. Understood.

Thank you.

Thank you. Next question, please.

Our

Hi. Good morning, sir.

Over the last few months, we have seen an increasing emphasis on industrial partnership rather than M&A. Have this changed your view on the need for acquisition to support the future growth, or do you still see the consolidation as an important tool for strengthen your industrial capacity?

My second question, it's a follow-up on the CMD. Could you provide a more precise indication on the timing, and should we expect it before the year end?

Thank you.

Thank you very much for the question. About the first one, I would say that all doors are open, right?

We will not constrain ourselves in exploring all kind of vehicles to generate sustainable growth in terms of revenue and profit, right? No matter what, right?

All instruments are available, and none of them is closed. About the industrial angle that you are mentioning, right, what do we believe is, given the fact that we have to put in place an excellent operation management system in Indra, because we're going to invest, right, we are investing and we are building facilities from scratch in brownfields especially, it's a huge opportunity, a unique opportunity, a once-in-a-lifetime opportunity to build a difference in terms of excellence in operations, in productivity, in lead time, in quality.

An example, it's what we are doing in north of Spain in Gijón with our facility there to produce land vehicles. We're going to invest in the facility, we will renovate it.

It's going to be ultra-modern, galactic, I would say, in order to ensure that productivity that will make the difference, I'm sure, right? This is the first one.

Regarding the CMD, sorry to answer in a similar way than before, I would like to ask you for a little bit of patience. It is about 15 days that I'm in the company.

I try to catch up as soon as I can everything. I need to understand all the company in order to be certain and sure when that Capital Market Day will take place.

We hope that it's going to be as soon as possible. Let us work with the team, and we will come back to you with further announcements or specific dates for the event.

Thank you.

Finally, I would like to thank you very much for your attendance, your questions. I'm sure that we'll have the chance in the coming days and weeks to meet together and further explore the major challenges and opportunities that Indra and the defense sector as a whole are facing.

I'm going to be very happy to learn from you all since I'm a newcomer in the sector, right, and every input from you, it's going to be very rich for my catch-up and learning process. Thank you very much.