Q3 2019 Earnings Call

We may make statements that constitute forward looking statements within the meaning of the private Securities Litigation Reform Act 1995. These statements could include statements regarding the intent belief or current expectations of a net Americas and its management with respect to among other things and then Americas business.

Plans and they'll Americas cost reduction plans trends affecting anello medicus financial condition results other operations, including market trends and the electricity sector in Chile, or elsewhere supervision and regulation of the electricity sector and Chile or elsewhere.

In the future effect of any changes in the laws and regulations applicable to NL amedicas or its affiliates such forward looking statements reflect only our current expectations are not guarantees of future performance and involve risks and uncertainties actual results may differ materially from those anticipated and the forward looking instead.

Shipments.

The result of various factors. These factors include a decline in the equity capital markets Oh, the United States, what she left an increase in the market rates of interest in the United States or elsewhere adverse decisions by government regulators in Chile or elsewhere and other factors described and then the man Amedicas annual report on form 20-F.

Including under risk factors.

You may access our 20-F on the S. He sees website www Dot SEC Dot Gov readers are cautioned not to place undue reliance on these forward looking statements, which speak only as of their dates and they love Medicos undertakes no obligation to update these forward looking statements or to disclose any depth.

Well it meant as a result of this which these forward looking statements become an accurate.

I would now like to turn the presentation over to Mr. Rafael the last summer and they'll Amedicas head of Investor Relations. Please proceed.

Yeah. Thank you really lucky after homeowner ladies on either one of local doing what am I in Boston, Social 19 results or something so I'd rather than I'm, hoping to release also here with me you saw the deals do you won't see a pool nickel.

Let me remind you that these presentations in total these like nobody nobody I've listened to the company's website.

Well the wind up isn't they still want to talk to you spoke you don't know users.

Now, let me hand over to record gold and we just started by outlining the may I like so they could you just like number two [noise].

Thank you [laughter] Dobson with different body [laughter] any big in this presentation by highlighting the successful kept eliquis. That's our company concluded only dolls piece was the largest skeptical increasing cash into his throughout the Chilean markets and thanks to all shareholders to all shareholders, we weren't able to have 99.

5%, Oh subscription, reaching more than three really U.S. doors death, we will a lot worse because he knew we our growth strategy and adding value to all our shareholders I would like to thank you all while we're shareholders for the strong confidence on our strategy.

Now focus now on our results for the first nine mouse falsely 80 90.

And the Americas EBITDA for the speed at which it 2970 $2 million.

Increase of 25%.

The same theater up to 88, she is five big company devaluation in four countries, where we operate especially in Argentina, and Brazil without the negative effects impact EBITDA would have increased by 41%.

During this period, we were able to reduce our opex by $35 billion and this reduction is mainly explained by efficiencies in Brazil and Argentina.

Total net income decreased by 42% Wow group net income increased by 760% reach reaching $832 billion Bdcs explained that by better operational results, partially offset by higher financial expenses in connection with the purchase falls and there was some phone.

We completed we compete in our focus on sustainability reflected.

The fact that we are the only South American you do you need to group included in three different coffee grades Oh, No Jones sustainability index.

Let's now take a look on.

Capex for the Peter in the next slide.

Total gross capex for the theaters amounted to 1000 $78 million, an increase of 20 per cent compared it to the same beautiful off last year, we don't come see the effects effect, our investments increased by 16% do we feel pretty good effect.

Because he's well balanced between asset management to develop and customers with 38% anyway, but center. This introspectively distribution Andrew car home services captured most of our Capex, we've got 8% to 9% share in line with our growth strategy with abuse and business.

We have to mention that effect of consolidation often so called in Brazil, which represents 70 per sample for total told distribution topics.

From a geographical point up to 51% off these estimates are difficult to do all subsidiaries in Brazil.

Now lets analyze the main operating indicators by business line on the following slide.

On generation business, our net production reaches a 31.4 kind of my thought were an increase of two per cent compared to the same period into 18.

From the total generation, 61% corresponds to hydro generation, which increase it by one terawatt hour, mainly due to higher generation catch rate about either bolt ons in our hydro plants in Colombia.

Oh weren't energy sales increased by 12% reaching.

54 report that rock powers disease explained by the at both Mason, increasing energy prediction, but also standards or purchase contracts in Brazil that the law was do we prove our margins that's on the license distribution business in the next is like.

Distribution. So do the then has increased by 26% the reaching almost 90 cinemark dollar.

Reach 32% to 32 Terawatt hour, our explain to buy and there's some phone.

Almost I know terms.

Our energy sales remain at sustain something substantially flat compared to last year.

Regarding number of and users.

An increase of about.

6000, despite declines because vacation Bruce just death, we you aren't do in Brazil and Argentina.

I would like to mention that at the beginning of July we concluded the tariff reset processing I know some follow and we expect to have the new data scheme in Colombia embrace during the next gummy Myles.

But that we didn't know we cannot have any better resets Perot systems do plan, it's really too.

On the families likes we'll see the performance off and the leaks everyday business.

[noise] analytics business, you can see that regardless TCT, but we do lighting points remain an almost flat, reaching 401000 points off.

They are also a boutique lighting, we have any bulletins grew up 146% in multiple bike in storage business in industry.

Regarding the home we had a significant increase in that sense excellence off duty for billing and collection services, while the level of contracts of micro insurance was slightly lower finally, he emobility the number of charging stations increasing from damn sure 100.

85 expansion in Argentina, and Colombia.

Regarding energy free markets business, the number off the leverage points increases by 16%, reaching 2730 delivering points Liberty points and it just sold amounted to 12.3 pent up on tower, 6% cooler than last year than last year looking after your our GAAP.

Through market business, there number off the leverage point increase it by 10% and gas sold increased by 49%, reaching an amount of point they said about power.

Competitive advantage off I know Americas due to its presence in major urban areas off the different countries in which the company operates will offer the possibility that you have to bleed expand these businesses.

Have a focus now on our efficiencies forced off the beaten he next slide.

Scott be form 1001, intermediates Neely U.S. dollars off all fixed reported on September last year.

I have two at the Opex for the first five Mount spoke to eat 18, often if somehow you notice of proposed see the difference. This ambitious has gained it off he defeated.

This way, we get a pro forma Olympics off 1000, 253 million U.S. dollars for nine months between 18 and from these amounts with Dana efficiencies for $35 million, mainly due to lower all fixing I know some follow and lower personnel expenses in Argentina.

In addition to beat we see a reduction of $10 million expanded by effects, reaching a final opex off one 1030 $307 billion, which represents a reduction of 8%.

On the following slide will make a focus on sustainability.

[noise] just enough really is a key driver for creating long term value among our shareholders and all what was stake holders in this way our strategy integrates our commitments to United Nations sustainable development goals goals, recognizing the synergies between social progress in.

Corporate services.

In a room removes economic development in becoming it's just where we operate the connections super low share value creation and Weve. These all fiscal needed to its weed death, we operate.

Along these lines. The number off then if he says is have increased would cease to 80 15.

Totalizing 4.5 million enough then a features on SDC for Samsung and age on SBC seven important you mentioned decrease which was the acquisition of a there's some follow.

The Americas has also contributed to SDG nine and 11 related to build a sustainable industry infrastructure and Cds in this way and then amedicas relies on its low carbon value added.

<unk> and services, where the smart meters analytics business are irrelevant to the development of human areas. In addition in order to prevent cyber securities their security incidents week over all our web application expose it to Ethernet we've had the same center.

Cyber security solutions, and then a medical has contributed to fight against climate change by generating.

[noise] deep seeks percent off its energy with hydro assets.

During these periods.

I would inclusion in threeq categories off about Jones sustainability index for the second consecutive either he's a recognition of our commitment towards developing a sustainable business model, leaving the energy transition and promoting responsible business practices.

Let's move to financial summary for the thought of using next slides.

It'd be thought for the period reached $2.97 billion.

Feet at 23% to 5% decrease compared to the same period last year.

Once we exclude exterran generic effects false positive in fact, the banks for the resolution of baby regulatory issues in Argentina.

<unk> increased by 16% to two point $75 billion.

GAAP net income came in at $822 million, 60% higher Vasopressors last thier explained that by better EBITDA, partially offset by the increase in financial expenses, mainly in and out some follow.

That's helpful stood at $861 million were 81% lower class last year stopping from an increase in EBITDA and at this lower result is offset by a negative impact the networking capital explaining by two main sources. They read bound up next net net working capital.

Actual speaking to 80 80 mailing Brazil.

These effect will be almost compensated by the end in the off the way the United team with a new actions and the non cash impact Offerable authority axles written will lose assets Revolution. The resolution that's on dealer.

Good net debt reached $4.5 billion, 32% lower versus the end up to 18, mainly explained by the statement off the bat in any of Brazil in connection with the purchase off Eletropaulo, which was speed.

Receipts coming from the cap I think Weve recently compute.

Let's take a look at the main Google business line drivers for EBITDA on slide 10.

This is like you can share performance so many of our businesses.

It's worth highlighting that hydro and networks accounted for 79% overall EBITDA after the consolidation off and that's about confirmed that the web well balanced risk return profile of our business model. It is often also worth to mention the great performance in our retail business Ritchie.

And they did not increase off 107% vessels the same speeded up to 80 80.

For the low carbon they'd be bad we should to 87%.

It'd be the high school that formed by renewable.

Generation distribution with deal in Italy.

And not including the thermal generation and three and three and three finally, our thermal generation business increased decreased by 29%, mainly due to better results inputs on data in Fortaleza.

What we need to stay on set on different counted let's see group to as an theme that's moved towards agenda on slide.

11.

Maybe that doesn't didn't increase it by 83% for $195 million, reaching $431 million.

Operational Interims EBITDA increased by $241 billion, partially offset by a negative FX impact of $146 billion. This important degrees and maybe that is mainly explained by the positive effect.

I mean from there we missed reach it we the GAAP and meant in connection with the best liabilities, which I think you'll the positive impact of $213 million EBITDA level.

Each generation business EBITDA increased by 44%.

Reaching 161 million US dollars, we don't go see the FX effect EBITDA would have increased by $96 million for 86%.

This is mainly expanded explained by the higher matching and payments in generation I realize it partially offset by the lower physical sales due to lower demand in distribution. These this did not increase it by 118% or $147 million mainly explain.

And then for the already mentioned, a one off spec defect regulatory effects.

Demand in our concession area was 6% lower compared to last year, while the number of clients slide decreased due to a reclassification process when our biggest customer base.

It's important to make sure that some weeks ago, the government announced that that if increase that we were supposed to have or nivalis disease was postponed it to January 20 between where we are going to see an increase of 19% in pad.

Additionally, the amounts that we are not collecting during these months due to the nation and delay will be recovered in seven installments starting on January next to you.

Capex increase it by.

62%.

And last a year on the other hand, mainly as a consequence of investments made in this distribution business due to the quality blending understood and to improve reliability off degrees in our concession area.

Let's continue with but assuming the following slides in Brazil overall, EBITDA is either either increased by 48% off $385 million, including including 96 million negative impact coming from effects.

Hi, guys binge eating generation business increased by 30, 435% or $64 million, which is explained by better resulting fortaleza as a result of affair, though federal tax adjustment quoting from 283 into 80 18.

Our EBITDA in distribution business increased by 49% on $223 million, mainly explained by the consolidation enough and somehow.

We also had better results in any real and then go yes.

It's really offset by a degrees in end of SAP.

I would like to highlight that after that that if we feel that we had he may have some follow on July we do not have any new patents, we vision process on our distribution companies in Brazil went to Blaney 20 feet. This means that the new will be walk there is under discussion. These days by an Atlas will not apply to all this year.

Vision companies and will remain with the 12.3% real Bridgetex walk onto the next that if review a few deals.

Got fixing Brazil decreased by 7% compared to last theater, reaching $549 million, mainly explained by reduction in etcetera, and then into real due to higher investment last year.

Related to that if review.

Process Scooted, okay that into Eddie 18 aim to 80 or 90, partially offset by an increasing then at some follow.

Let's move to Columbia on the following page before these lines.

EBITDA in Colombia increase it by.

$18 million or one per cent compared to last year, despite the negative impact off $117 million due to currency devaluation.

We don't expect seek backed EBITDA would have increased by 30%.

In generation business, EBITDA decreased by $7 million or minus 1%.

But in operational terms, we have an increase up 11%, mainly due to higher sales revenue asset conseco, Ohio off hire offer higher prices due to higher production generation production.

This was offset by negative effects impact of $68 million in distribution business EBITDA increased by 4% or a $50 million, mainly explained it by a higher demand and higher pace.

This was partially offset by FX impact of minus $4.7 billion. It's important to highlight the distribution business results also includes the contribution of analytics.

Which in Colombia show as an important degrees in public life insurance services and electric infrastructure projects to be clients.

Capex in Colombia decrease it by 2% due to negative effects impact you lose the local currency the capex increase in 80% compared to last year now lets analyze the rule on this slide number 14.

It is through increased by 3% or $12 million, reaching $411 billion you dispute.

Generation business EBITDA decreased by 6% or $17 billion from reached $4 million form for all 4 million wave supplanted by a negative FX impact.

The decrease is mainly due to positive one off the fact that we've resisted last year in connection with insurance compensation due to El Nino because they will flow.

Theses, partially offset by a higher energy sales and higher average sale price.

In distribution business EBITDA reached at $196 million 31 million or 18 million, 18% higher than last year.

Sales increase it by 2.8% compared to last year and average sale sale price was also higher.

The number of clients increased by 14000.

Total capex decreased by 7% compared to 28.

Let me now comment our financial performance on the following slides.

[noise] start for starting from 2900, Incented $2 billion EBITDA. The company was just a depreciation amortization for.

An amount of 8800 $11 million, 22% higher than last year, mainly as a result of the consolidation off in so Paulo reach an EBIT off 2100 $60 million.

Net financial results amounted to minus.

The $327 billion, which represents a higher costs all $37 billion. This is mainly due to higher financial expenses and enter Brazil related to the financial expenses come from the purchase awfully dropout.

Income tax registered in the we repeated was $630 million $48 million higher than last year.

Effective tax rate due in the field decreased from 39% to 33% mainly due to reduction in income corporate tax in Colombia.

Total net income amounted to 1220 $1 million, while attributable net income reached $822 million.

60.3% increase compared to the previous year results.

With all these elements lets analyze it kind of their cash flow into slide number 16.

As a full funds from operations amounted to $861 billion, starting from an EBITDA of 2970 $2 million. This result includes a negative net working capital into view for an amount of 1160 $8 million looked very tightly bound of.

Net working capital actual staking 2018, mainly in Brazil, and in Colombia, and this is effects will moderate will be almost totally compensated by the end of two any 18 within new actions. In addition, we had a non cash impact on due to legal authority asset resolution Argentina.

Extra space during the period amounted to $496 million without any revel relevant depreciation despite the higher earnings before tax.

Net finance expense amounted to $447 million higher debt or Dan reveals here in 63.1%, mainly due to the depth of the new brunette doll being some powell and Thats related to the acquisition of Eletropaulo now and in some form.

Net cash flow amounted to nine Useight hundred $61 million during the period after investing 1070 $8 million.

In maintenance and growth Capex as indicators in the for indicates an improved his life dividends paid by the company amounted to $644 million.

The two the to the period no the dividend space extraordinary operations amounted to 200000 for you on mainly as a consequence of the capital increase concluded in August .

With all these effects total net debt decreased.

Two point that $15 billion compared with December .

2080.

Let me now analyzed the better for our company to following slides.

Gross debt amounted to 6.2 $88 billion, a decrease of 2430 $5 million versus December to any 18. This reduction is mainly explained by the payments off that.

Our final Brazil in connection with the purchase Oxtellar football this debt which amounted to.

$2.5 billion was paid in August the SEC.

With the proceeds of the capital increase.

From the operational perspective, it is important to mention a decrease in the depth of I think increasing offset bank by an increase in any way I spent some follow in a real and put things in terms of currency. Despite the reduction of antibodies is that how far that is skewing Brazilian real nice and.

Also half of our profit is located in Brazil as you can see this the high side charts.

The cost of debt remained flat versus December 2018.

Let me now continue with the focus in our last two acquisition in Brazil and submission business.

As we are doing every club.

Starting with that in some Powell, we're very satisfied with the performance of the company EBITDA reached at $438 million SNL Americas level, if we compare the number two we eyes in Brazil and gap, we see that EBITDA increased by 78%, mainly due to Opex reduction and also high.

That is due to the tariff revision process concluded on July .

Of this year at net income L level, we had a positive result of 504 6 million re eyes.

While last year the company reported a loss of 158 million realized in Brazil and get.

This improvement is explained by a bit better operational result in a better financial results due to its a.

Liability management.

Gross capex reached $650 million and it was mainly located two digitalizing modernize the distribution network.

Opex decreased by 14.4% as a result.

Of the deepening of the integration and optimization process, often some power in L. Americas group, which started on July last year and half allow it to reduce the operational costs.

That's profile has improvement has improved compared to the Brazil's here. Thanks to a good liability management they buy the company.

Regarding the operational performance distributed energy slight increase with respect to last year.

And energy losses decreased from nine point, 57% to nine point, 56%.

And we can see the quality indicators Hebei insights.

The duration of the frequency the have improvement on a significant matter, reducing by 6% and 11% respectively. As a result of investments in the company's diffusion network.

We are very confident that blue continue adding value in line to what we announced and on our strategic plan.

You're not the interesting another interesting news.

I want to tell you about the launch of you burn fitted ability project in feel Olympia in some follow I suspect successful project.

Consist in a innovate fifth elaborate laborde I thought it that research and implemented smart meters in smart breeds contribute into a sustainable infrastructure through this italys Jason.

[laughter].

With that sit ups of steel to admissions between other initiatives to the good develop off Cds.

[laughter].

Now on the next slide let me highlight the performance of annual Goliat during these periods.

I think did improve it eats EBITDA by 4.3% compared to the same view the Gulf last year. Despite the negative FX impact of minus $15 million without this negative in fact defect it'd be that would have increased by 17% net income decreased by 8.5.

Percent explained by higher taxes paid.

So last year, we have the tax benefit due to the previous year losses cost of debt was reduced by 0.9 percentage points. Thanks to a good liability management.

The company added more than 86000 clients during the last 12 months and its energy distribute it was higher than first half of last year.

Increasing by 3.3%.

And in energy losses were flat compared to the remaining 12.1%.

Regarding quality indicators, we see a solid the decrease in size and safety, which is explained by our strong capex plan focusing for certain in that and networks. Both indicators were with was reduced by 28% and waiting 9%, respectively. Finally, let me comment.

That recently was signed an agreement with the state, but we as an email and other situations in which we agreed among other things do increased 26% of energy availability created waiting to build 17, new substation incentive to anything to add to accelerate our capex plan to improve even more there.

Reliability and our quality indicators.

Now on the fall following his life I would like to present, a summary of the capital increase on agnostic on August 29, we concluded our capital increase that was announced on February 27. After six months those of hard work, we were math, we met more than 300 shareholders and made several.

Presentation to explain the purpose of these operations and we are very satisfied to see debt at the end. The we had a 99.8, 0.5% of subscription level and basically our shareholders join us e. on this growth path.

After this operation.

Ill share price has significantly increased increase reflecting the value added to the company and we became the largest selling company in terms of market cap into detail now we expect to come through new adding value to our shareholders and boost our growth strategy in a sustainable way.

Let me conclude this presentation with some closing remarks in the following slides.

Despite the significant currency devaluation, we had we have seen in the region.

We were able to have a very positive results in its period.

Thanks to a very operational performance because the abuse enough in so Paulo, and the impact of past liabilities resolution there in Argentina.

Oh pair for resets processes were concluded except for Codensa, which should be completed in the coming months. We did not have ended that if resets process and due to anything into.

The capital increase was successfully completed with 9.5% subscription and slightly more than $3 billion collect this shows the confidence that our short shareholders have on our company and paves the way for continue with our growth strategy.

Finally, our company was confirmed in three categories of Dow Jones sustainability in this index being the only South America utility group that has he these important significant in the spot important recognition in three segments intricate rigorous up now charter sustainability index.

Let me handle Q.

Well. Thank you think your radio. Thank you very much orientation and open recorded operator for like you had a sense. Your operator. Please proceed.

As a reminder to ask a question you want me to press Star one on your telephone to withdraw your question press the pound key please standby well, we compile the Q and a roster.

And our first question is from Javier Suarez from Mediobanca. Your line is now open.

Hi, Good morning to everyone is have you started thought maybe ivanka.

Three questions on my side.

The first one is on the on the net working capital on its like number one number 16.

These negative net net working capital of 1.1 billion euros, if you can help us to understand.

Yes that negative impact should be we have sort of like the yearend if I if I understood properly.

Nation. The scene that you are expecting is that that number should be close to sito like the yen is that correct and if you can display Nash did dynamics, explaining that reduction of that networking capital negative effect to sito by the yet in.

That would be the first question the cycle not the second question is on the EBITDA growth in if like number number nine the company has indicated that it stripping out the they one off coming from getting Tina the adjusted EBITDA growth could be plus 16%. If you can help us to understand there Jeff.

That EBITDA growth stripping out the the can you see that embedding that there.

Let me add I thought it made me to electrified alone. If you ask people to help us to understand beyond that lagging EBITDA growth, excluding not only one off but also perimeter effect.

And then the final question I know that he's maybe early it's still early days, but do you have any comment on the possible impact that the new administration, Argentina may half of the company on there on the company many thanks.

Okay.

Thank you have yet well for for the first question regarding the networking capital.

This is the there is an important defect in the nine months that we have the this in this period, which is being first of all he Brazil right.

Regarding the CV a effects.

We accumulated a strong effectively in the in the let's say C.V., we called it the Regulus thought asset in Brazil for distribution company in order to ER distribution company purchased the energy with expensive as a higher price then it's in the company's has.

It's a better so we accumulated a higher networking capital and we expect it's especially some paolo from the data for setting component that we are started in July we are recovering this disaffected dueling and should not only the next the until December but.

Until June of next year. So this is one important effect that we are moving let's say in the in a good way and other we are now recall hearing more and working capital then we update the other effect is related to some payments that we we focus in the tariff reset of the company. So.

We focusing in order to improve the write off the assets, especially Brazil.

We had most of payments of these assets we paid in the beginning of next year. So since we don't do not have these effects for the next year.

No we don't have not at that it resets for for next year will not have the same impact.

Entered the third the impact to add renegotiating in and doing a better.

Let's say accounts payable.

Payment.

Terms to our suppliers in order to compensate so these three factors comp.

Together, Ken Ken can compensate the they facts right.

The second question. The second question is related to the two David that without let's say without the one off effects for the regulatory asset thing in Argentina, which was $200 million more or less and without eletropaulo. If I don't fight, let's say.

Do a normalization, let's say in eletropaulo, so they fit they EBITDA would be $2.3 billion. Okay.

Compared to $2.2 billion. So the fact without all of these one off is 3% more or less okay.

And the third deferred question.

No.

And the and that's what you said, it's too well, it's too early to understand what.

We'll have the of course.

We are confident that.

Dino will.

Despite the politico, let's say changes or other budgets and that will follow.

Our opinion or a good way, we do expect the.

Our our return is in Argentina of course it.

Let's say, it's too early to to answer.

It's a wait and see and situation.

And I think in the following the full amount to have more information.

Due to give you more more money for mission about what what will be the plans and want to be the this structure, but again as we also said that it's enough for us is.

Neutral cash flow legend gene that we don't have that's in Argentina. So we will maintain these this policy to a neutral.

Cash flow impact for the country.

Okay. Many thanks.

Thank you. Our next question is from ethnic instead of mandates from Kinda any color. Your line is now open.

Hi, Good day, Thank you for the questions and acuity and the new materials, Oh, I held pretty questions I would like to go one by one if you don't mind or the first one is related to a little Bala.

Hi, guys up very significantly to 1.6 billion realize from during the first nine months of this year versus the 900 million.

I mean last year.

It seems to be very good progress on our fellow add the manageable opex. So congratulations on that one bottled so.

All the press release mentioned, all but still a 630 million realize a lower opex due to lower hydro risk if you could.

Comment a little bit on that what if and also I understand that particular issues should not structurally affect EBITDA. So maybe would be helpful to know what do you expect for.

20 every day in and as you said, it's also about.

Well I think yeah. Thank you. Thank you for a follow up question.

Well Eletropaulo as you mentioned the new tariff reset very important we got a higher rapid this is very positive we got 8.5 billion debris eyes.

The plan, we consider 8.1. So this is very very good for our our economic results.

And would it be elusive opex, we are advanced and advancing.

The this mutual friend with with the company changing but putting more innovation bought a let's say remote operation of the agreed and with the reduction did the volume of let's say of human of the of people were managing the agreed but putting more.

So this is but one very important important thing.

The last one that you mentioned this the what you called it the CV Ada Es is the regulatory asset is exactly what I was explaining.

Regarding the the hydro the hydro risk.

So at the Eletropaulo anticipated or the cash flow to recover in the next that if reset why we had this difference in David that you were right at this.

Well it but as it is supposed to not be affected EBITDA, but in the case of some powerlook need you have to consider some Paul did not signed at their agreement. We for now so some follow has still the still have the.

And as a bolus do you still has the demand the effects in some financial items with the CV. It's a it's a very technical issue, but if you see the details of the said if the data for said, you'll see that the amount that could relate that we anticipated and also reflected there.

That was higher let's say more more cost and it it should be at the end of today. So we will have.

Began back in the cash flow recovering BCP V eight and some positive it back with this adjustment off the of the CV.

Regarding the that that if reset.

Okay, Great I think I understand what you say a lot the technical even we didn't know, but I will follow up with plateau afterwards to to make sure.

My second question is ready to Colombia.

Your machine that you expect the decision in the upcoming month I wanted to know if you have any regulatory acetate expectation.

And.

You could give us an idea what is the issue now that he's revamping the Craig from making a final ruling on this if there's any point Oh contention that is particularly hard to result.

Okay.

Well in our in our view is that go with it somewhat.

Bruce procedure or operating issue with the regulator huh.

In our opinion they are doing a very good very good work.

In considering considering also considering the asset as you know Columbus moving to a revenue capsule data analyzing the the real investment up the company. So it's a it's a very important work to be done.

They ask us some some information.

Regarding these we already we already sent this information to two then it's a matter of time.

And as you can see the.

Are there or the enormity said that the tariff reset will be redrafted interactive to April .

So it's a matter of a in our opinion of Mt. Nothing gets into the end of the we'll have it.

There's no big discussions regarding this.

In terms of Rod.

ER, we if it's not the.

Because you don't have a number yes.

Gross or bullshit, but we are we are maintaining their mounted that we considered in our in our strategic plan. There is no big changes, we haven't thing which is that the rockies the their mouth.

Is the keeping them the strategic plan of the of the company.

Okay. Thank you very much in my last question, maybe you could do you you do us any update on how the regulatory discussions regarding the declaration of gas prices for this much goal.

Well for us.

In terms of generation, we don't see we don't see relevant impact on beef.

We are.

Our estimation dispatch considering what's going to be what we consider to a lower a lower price.

And we are in our plan, we are very conservative for US we don't see major.

Back Cds in this new regulation for Peru.

Okay. That's all from my side, Thank you very much.

Thank you. Thank you.

Thank you as a reminder, ladies and gentlemen, if you have a question. Please press the star and the number one key I got Touchtone telephone.

And our next question is from Charles Fishman from Morningstar Research. Your line is now fan.

Thank you on slide 30, the energy losses are are certainly.

Hi, Yes, you know on your distribution companies in Brazil, and Argentina, and I know, you're aware that I know you're working on it but if you.

You are focused on that if you improve that because your tariff reviews are out several years.

Now on.

Any improvement in those efficiencies you retain don't you you don't have the there was no ability for the regulator to come back and ER.

And asked for those before the 2023 tariff reviews is that correct.

[noise].

Yes, yes, yes, you are right.

Right.

The issue here is to focus in the improvement of the losses in the recover up the losses you are right that the in Colombia.

Sorry, in Argentina, and Brazil, especially Brazil.

We are talking about real okay, Rio and a real and this will.

This was the me are the main impacting losses.

The losses increases our focus is to who we are reshaping our investment plan in order to recover a deep.

These losses, but until the next that if the reset.

Especially in well in both countries, but because it has entered into an aesthetic reset into eightytwenty too right.

So in 220 22, there is no yeah, let's say regulatory actions regarding regarding the that the the losses. So our plan is to reshape which is to do a shift in our capex plan in order to to reduce losses in the in the areas.

That we operate.

Okay.

Similar question on slide 11, you're seeing.

Customer losses in Argentina, It was 2% or for the first nine months.

I'm, assuming that it's a it's a similar perimeter another words.

That is a a like for like comparison and the issue there is the macroeconomic situation on Argentina.

Yes, yes. This is related to the macro macroeconomic situation on the duties are of course there is on.

Uh Huh, let's say I think and an increase in areas thing with low income areas right.

But we we yeah, we are reshaping as I told you the way.

We measure the they agreed in these areas in order to recover these Ah this reduction and as you can see that demand also read doses in Argentina, so a bit they affected both effective related to the economic situation well some of our profit also with the climate, but let's say the major.

That is relative to the economic situation.

Okay. Thank you and then my last is really a comment just your last point on slide two about the.

Named to the three categories of the Dow Jones sustainability index. Congratulations on that that's something I know you're must be very proud of that's up.

Thank you. Thank you very much.

Thanks Kim.

Oh Im sorry, if you will really be connected.

Thank you just never.

Thank you I'll just answer on flat because we didn't answer there Rob of.

Fair enough to let's say in accordance I imagine, it's $2.7 billion, Okay, and we expect to remain these are in this amount they just.

Sorry to interrupt you.

Thank you. Our next question is from ethic and Fernandez from credit card. Your line is now fan.

Thank you for legal or I'm, sorry to pick up little bit more of your time I took out a final question related to the.

Sure blending volumes.

The update that you're still thinking about doing something about it.

Thank you think as they are they decide to another part of the capital raise.

The the use of proceeds to the pension fund.

We already submitted to the regulator authorities thing of pension fund in Brazil, which is pretty weak into 86 stuff August we presented the request.

ER as I don't know if you remember we got that approval from the unions the trade unions and approval from the Retirees Association and also with the Foundation then we.

Rich we send it to the should the regulator all the process that migration plan.

They are analyzing a we don't have information off this process, we expect a full five to six months from from then to approve it.

In parallel we are a building a stronger communication plan, we cannot started right now because we cannot communicate.

As you noticed a negotiation one to one is a 17000 people.

But we are preparing a a stronger a stronger.

Communication the negotiation plant.

We expect after these process.

The approval.

We don't see major issues.

We started this this grosses.

In our estimation, we expected in next year to close next deal with reduce a with a major five of the patient fund.

So.

Which you know the plan is to de risk.

The plan.

Okay.

Okay.

Thank you very much.

Thank you at this time I'm showing no further questions I went back to turn the call back over to our thereby steel for closing remarks.

[noise] well.

No no more questions I conclude the results conference call.

Let me remind you that are being faster relations team is available for any doubts.

That you want a to explore that you may have and we are very happy to answer you and with our Investor Relations team.

Thank you for all your attention.

Thank you.

Ladies and gentlemen, this concludes today's conference call. Thank you for participating you may now disconnect.