Q2 2020 Enel Americas SA Earnings Call
Ladies and gentlemen, todays conference is scheduled to begin shortly please continue to standby. Thank you for your patience, ladies and gentlemen, todays conference is scheduled to begin shortly it's going to standby. Thank you for your patience.
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This conference call, we may make statements that constitute forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995. These statements good including statements regarding the intent belief or current expectations, One no America and its management with respect to among other things and L. Americas business plan.
No Americas cost reduction plan trends affecting no Americas financial condition or results of operation, including Mark to market trends and the electricity sector in Chile, or elsewhere supervision and regulation of the electricity sector in Chile or elsewhere in the future effect of any changes in the laws or regulations applicable to an L. America.
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 look forward looking statements. As a result of various factors. These factors include a decline on the equity capital markets of the United States. Fortunately.
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 in the mail Americas annual report on form 20-F, including under risk factors you may access our 20 ask on the east sees web site at.
<unk> dot as easy Dot Gov readers are cautioned not to place undue reliance on those forward looking statement, which speak only as of there being.
No Americas undertakes no obligation to update these forward looking statements or to the close any development as a result of which these forward looking statements become came back here I would now like to turn the presentation over to Mr. about Firenze Aloha saw an l. Americas head of Investor Relations. Please proceed.
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Good afternoon everybody.
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If we look at the second quarter report that it did not reach at 643 really on the west doors for a 6.4% to decrease compared to the same Buda they'll celeste.
This is mainly explained by the fact that last year no a multi groups $279 million as a result off the agreements signed that between other sue and Ah. It's in a state for pending claims so everybody claims inhibition, we have to consider they backed off Curtis live Alicia.
And a reduction in demand as I've read those as a result of the cold ignite Deane.
Explain it by by Modi issue. However, if we if we execute exclude the impact does that come in for me to sewer by slab leaves the resolution there's devaluation in koby defects EBITDA would have increased their deep bite the deep bring 6%.
If you look at the first half of the year humility they'd be Dod reach it 1471 really on the list daus.
28.9% decrease compared to the same viewed last year and mainly explained that by the previously mentioned effects.
Excluding it is true liability resolution the Chris devaluation in coffee defects.
EBITDA would have increased by 11.5% net income in the second quarter and on a standalone basis decreased by seven to 7% to 3.7%, reaching 89 million U.S. daus, while in a cumulative basis or decreasing by.
45.4, reaching $297 million. Both games. This is explained by lower it'd be dot, partially offset by a better financial results related to a lower that's in Brazil, and lower tax payments a phone from a from operations in epic.
So in the first half rich or Richard the 462 million a U.S. dollar an increase of 20 to 22.1 per cent compared to let's do you why on that that increased by 9.3%, reaching a $4.7 billion we will.
Unlikely that they'll catch fluent that's later in this is this presentation on the company's Reits like the a number 13, we'll see think back to school. These 19 on our business.
As you can see we are opening for the first time, the water and the first half for you to have a better better idea.
Yes, we can see how could be impacted our results for the tedium considering that the flowing back to Buda during the second quarter. It off of two any when you're doing a reduction of electricity demand three to two calls it at any backed off $187 million.
At they'd be done level.
While Betsy Dr. by $52 million at net income level, both impacts were 50 feet 55 million U.S. daus and $14 million respectively.
After deducting the effects impact we get to a an adjusted EBITDA of 1990 $7 million for the first half and 1 billion for the second more or less won't be there, but the second quarter. While adjusted net income reached seven 700 then.
11 million, U.S., daus and $379 million respectively.
We are implementing some actions I need the company and actively working we've done regulator to partially absorb decent backed into next doesn't mean coming are coming mouse just to explain you better modish explain the the Quantico bead defect the quantum will be defects will.
Starting to have effecting the in our you know where a company starting from July over the coming slide a little see baby diaper loosen than breakdown.
[noise], considering the second quarter on a standalone basis, and stopping from 1106 $1 billion multi did not for the same deal done let's see here, we can see a decrease of $279 million as a consequence, Oh you already mentioned.
Best liability effects in Argentina book of being to 80, 90 generation businesses and retail business, having a negative operational results, while networks and extra form it better finally, we had a negative impact to be the derived from currency devaluation of about two.
Hundred million dollars Columbia represented 46%, Oh still thought it did not push it by a higher energy prices.
And higher income as a result of the recognition of investments all 319 basis own new Ted if a new pads, Brazil represents 30% they'd be docile by through 18% EBITDA and ER Argentina, 6%.
Himself business lines networks are present, 53% afford it did not want generates contribute generation contributes with 39%.
Reached 32% Thislife, it's hard to.
And the retailing in Alletes represents 7% than 1% respectively.
I think the cumulative EBITDA in a into first half of the you are in starting.
From the 2000 in $17 million from the same period last year.
The main degrees comes from the currency devaluation bought a total of $239 million.
We also see.
There were no impact on either the school and on an operational points of view thermal generation and we feel we impacted by lower sales, especially in Brazil, why renewables networks and analytics are improving their results compared to the same period last year alone that contributed to four.
80%, Oh, it'd be dot, followed by Brazil, or 36% through 70% and Argentina, 7% in terms of business lines networks are present that 51%, though for every dollar well generation contributed to 41% footbridge stood at 32% at much higher.
Lets hydro retailer and then olexa pretty much the same off the of the departure, so you're going to 7% them and 1% respectively, let's not on the line celebrating highlights of the following in the front of these lives.
In generation business always start up cost remains a basket, let's say a the 11.42 0.3 gigawatts off installed capacity from reached 55% is higher net production to the second quarter reached 8.5 Terawatt hour.
A decrease of 4% compared to the same theres less to you in cumulative dirhams net production reaches the 19.2 tariff about 10 hours and a in the first half off here, which means a 1% degrees there's room. So for the reduction up 19% during the Buda, but the spot to be part.
Well you compensate the budget female which increases its production by 14% of the Typtap reduction 62% responded to two renewable hydropower generation, our energy sales decreased by 9%.
In the second quarter, especially in Brazil, reaching a total door 15.2 Terawatt hour you cumulative turns the decrease was also 9% mainly due to Brazil, where the decrease it reaches the seat at 22%.
And to be where the decrease was 11%. The reason of these reductions was mainly due to a trading activity in Brazil substantially catch rate I thought on that.
Let's now underlies network networks business in the coming is lights.
The second quarter distributors and it's Richard the 25.9 said about tower.
Grazing by 12%, mainly as a consequence off the pandemic.
And the related the reduction in the economic activity in our in our country has not been remitted in cumulative dividends distributed energy, reaching 50, or 56, terawatt hours, which means a 6% decrease compared to the same Buda last year.
Regarding number of customer customers, we had a an increase of zero to 200000.
Customers, mainly explained inviting you know and at some phone codensa in anyway us.
Quality indicators improved with the you know all our subsea there's due to the rather front the amount of investment to realize it during last years.
We don't exception, we'd like to life, increasing the number off interruptions off a in a in a in Santa wherever so for US. It does severe rainy season and also service so for that damage and now we're on our network I suppose but increased in the level of social social violence during the second half.
Off Oh, do indeed, 90, and the following slides I will see a in a lakes and retail businesses.
[noise] customers positioning couldn't piece it continues to strengthen via would stay in traditional operations as well as a on a new services and infrastructure. He then ilecs you can see that regarding TCT well be gliding points is likely degrees.
Reaching 290000 points.
And in E home business the level of contracts of micro insurers reaches 1200.
Which means a 3% increase.
Regarding financial services, we had a 4% increasing credit card business, we should reach of the total of 866000 active credit cards multiple types of Santos installed the doing the first half of the you increased by 7% in terms of capacity right.
1.5 megawatts finally in immobility the numbers off a number of charging stations increased by 104 to 683, mainly explained by Columbia in Argentina regarding retail business. The number of the lead reports.
Created by increases by 3% to 3%.
Reaching three 3170.
And then it's sold amounted to 7.2 10 about tower.
Which means a 12% decreased as a consequence help depend dynamic and related reduction off the demand that's moved to a comfortable account the analysis.
On the Cummings line are becoming a beginning with the reduction Tina.
I imagine Tina during the second quarter decreased by 80, 89%.
$295 million compared to second quarter, Brady 90, reaching $36 million.
Just a significant reduction is mainly explained in Spain and by the positive one on fixed a effects by $279 million. That's really the book at the last year in connection with their agreements between other soon and the Argentine in regulator.
In addition, we had a negative effects impact of $48 million in the in the quarter. They back coming from coffee. It was a reduction of $10 million at they'd be not level. He generation business. It didn't decreased by 56% reaching $21 million.
We don't consider effects effect.
Yeah, we would have a decreased by $3 million or a 1% mainly explained it.
Hi, higher opex due to a inflation effect.
This was partially offset by higher electricity sales of 26% and higher capacity payment.
This addition business EBITDA decreased by $269 million or 95%, mainly due to a both main SUNS. One off are you factoring that is through last year. In addition, we had the negative effects effect of $21 million in operational operational terms.
So it'd be dot degrees of mainly due to debt a freeze losses increased.
Lower sales demand in our concessionary was 4.9 lower compared to the second class it off doing 90.
Topics as Indiana decreased by $7 million to $1 million compared to last year disease as a consequence of a negative FX impact and frozen tariffs.
Freshly a investments that's continuing weve, Brazil under following his slides are in Brazil overall EBITDA in the Peter decreased by 48% on hundreds and $74 billion, including $86 million help negative impacts coming from there.
FX effect, the best stemming from copied what's a reduction of $121 million at EBITDA level. If you like generation business decreased by 53% or $34 million, which is mainly explained by lower energy sales specialists naturally.
I thought I'd.
It'd be dampening distribution, it business decreased by 42% or or $130 million to $32 million. If we don't closer to the facts effected did not decreased by 35%. This reduction is mainly explained by lower electricity sales in the for the subs.
Figures.
Yeah for distribution subsidiaries.
Topics in Brazil, a degree that by a 5% to go bad it's less their reach 100 incentive to remove indoors. If we posted the they fact effect copies are increasing by $57 million following our quality and they improvements brands.
Let's move to Colombia to the following a is lives.
Bancolombia increased by $47 million or 14% compared to the second quarter of off last year.
Currency devaluation had a negative impact of 55.
Sorry, $54 million nobody so terms EBITDA increased by 2%.
They backed off a coming from the pandemic door. The Golden 19 was a reduction of $26 million if it did not level.
[noise] on the other handed generation business I did not decreased by 15% or $29 million. If we don't consider de facto effect, we had a a decrease of only 1%. A this is mainly due to lower energy sales and higher energy purchase costs.
In distribution business it'd be that decreased by 12%.
Or a $17 million.
Well currency devaluation had an impact of $54 million dollars impacting this EBITDA. We don't decide EBITDA would have increased by 9% mainly explained by the introduction I'll leave that if a in April 29 team as you know.
It is important to highlight that are the new regulations scheme is came in Colombia and revenue cap, meaning that lower demand. The there's nothing affect our economic impact on our resins.
In Catholic School, only increased by 19% explained by infested and say nine now in our distribution company.
Dan So.
Excluding FX impact today, Capex would have increased by 29% off or $18 million, let's now see Peru in Ah Onez July the number at a 22.
Aim to reach a $114 million, which means a decrease of a 17% or to $83 million compared to second quarter two any 19.
Currency devaluation has a negative being backed off a $4 million in operational terms, if you're not decreased by 14% or $19 million they backed gummy from goals it.
Or was it does show no $30 million at EBITDA level.
Yeah, and again in the second quarter of often of this year you generally some business it'd be dot degrees that by 36% off or 90 million U.S. dollar. This this was mainly due to a reduction of 19% in energy sales.
Actually offset by a highest sale.
Price.
In distribution business, if you that decreased by 5% or for a million.
Dollars.
And considering the noble Racino terms.
<unk> increased by $3 million, so 5%, mainly due to higher merchandise margin, partially offset by a lower energy sales up 19% total capex in two degrees of by doing them have per cent compared to brandy 19, due to lucked out locked down a implemented in the counter.
Therefore said those are two or two or delayed a in no program at the works to you to deploy that Capex Brad.
No one alliance hour prompted Lawson mean indicators in the coming into coming in the company's lives.
Looking at Big lots of figures, we start to from $623 million It did not.
Then, we see a depreciation and amortization or reaching $265 million, 60% lower than the second quarter 218, 19, mainly explained by Brazil due to FX impact EBIT reached 358 million.
Daus, which is 58% lower than last year net financial results amounted to a minus $61 million, which represents a lower cost of 55 million us dollars.
Compared to the same theaters last year. This mainly due to the payment off I know Brazil's that's in connection with the purchase of a effect at the end of some phone.
[noise] income tax registered a it appeared was 132 million.
Dollars, which is 39% a lower than let's see here means it made as a consequence of Oh lower in earnings before tax luminary income amounted to $89 million, 74% degreed that decreased compared to the previous year results.
We did sell them, it's less than a lies the cash flow in the slide number green tea.
Lets 24.
AFFO funds from operation for the folks see for the first six months Sofia.
Amounted to $462 million starting from an EBITDA.
Oh for 1470 $1 million. These results includes a negative net working capital was repeated for an amount of $514 million, mainly explained by Brazil.
And they bought the bike overnight defects in lower financial expenses go pretty much the same reputed off a of the pujols either that speed during the period amounted to $353 million, while net financial expenses amounted to 100 and Friday.
$42 billion Capex amounted to $600 million as indicated in previous lives and that dividend spade are busier in Brady to anywhere.
930 $35 million.
With this without these figures we get to a net free cash flow off a 1000 $7 million to $3 million.
[noise] after financial received receivables for $93 billion extra ordinary operation.
For my nose $9 million any effect effects of 590 million took on that that's increasing $399 million compared with December.
The way Erie Brady 19.
Related to dividend dividend payments in May.
They did this year.
Let me emphasize that a I told you then after cash flow of course, it's a negative free cash flow after dividends okay.
Let me now analyze that that's off the company a in the following a into next slide gross that's amounts to $6.1 billion a decrease of 2.4% the vessels December 29 feet.
The facts or effect accounts for debt reduction of more then we'll be Leon a U.S. dollars did affect it.
Most of our that isn't loco occurrence.
This was partially offset by.
Hi out that's increasing mainly email Americas.
Holding level and also in Codensa and there's hope all in a bit.
In terms of couldn't sell that's in US dollars at the holding company increased due to the debt issued in the no Americas image theater.
And on the other handle exposure to Brazil, Brazilian real nice made a degrees in DC in this data in a ingredients of course.
Finally regarding because of better or we can see a reduction for disputed going.
From 7.1% into 18, 19% to 5.1% into second quarter up to any Duane. This is mainly explained by degrees in the weight of the debt coming from decision on some bounce better condition to refinance debt in Brazil, Colombia, and how the company and lower fares.
Oh rates in Brazil.
Observers in hopes of it in Brazil, not Matt Let me show you how our position.
Oh, our power company is well prepared for any politician liquidity needs that takes to this a this solid the financial position.
Agreed to position remains very solid as you can see a in 34 for June we stood at 2.3 billion U.S. dollar in available liquidity from which 64% where cash and cash equivalents in terms of definite serious abilities.
For the coming years, we didn't see any difficult difficulties. This year, we have to still face amount to reaches of $1.2 billion, which is completely manageable.
Our net that's where we thought Rachel increased a little bit due to the debt issued by the company and the lower that's a in a lower EBITDA level. However, we may remain in a solid 1.4 times net debt to EBITDA, which gives the confidence to support our financial strategy doing this.
Difficult periods, a distress a far credit metrics is reflected in our current rating levels.
And outlook so if the company.
Rating agencies, confirming confirming the ratings and outlook even in this current challenging scenario.
Now Mauricio will explain how COFINA situation will impact our guidance for two in between.
Melissa.
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Following the presentation.
Yeah Yeah.
Well. This is life is just to emphasize the what what motifs explained in the beginning that we are presenting a change in our guidance for this year as we have commented over the presentation met many extraordinary circumstances are affecting the normal performance up the business.
Initially foreseen for this year.
Most of these extraordinary impacts are probably going to remain until the end of piece of this year, a particular day part of the though their local currency have suffered with a significant devaluation.
Against a against US dollars managerial act shows and commitment of regulation in 15 countries have presence or that we are perhaps it could help to mitigate extraordinary back not related to effect for example would be economic effects that we are discussing.
In Brazil.
And ER and in other countries a heavy said the above I remind you that they'd be bass guidance for 280 to 80 and now sit on our strategic plan for the.
Last year was $4.7 billion.
With these currency devaluation input they show in past coming from coffee, we expect to reach.
An EBIT and EBITDA in the range of between 3.7, and 3.9 billion U.S. dollars by the end of of 22 NP.
And for our our closing remarks.
We think that difficult times that we are failure we are.
Yes, I am.
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Mhm potential inorganic.
And when thinking about eating think you're really only very clear now let's move to make you on a section.
Okay. We have received financial sense. So many questions language, you're trying to consolidate twox had only questions because some of them are every bit the.
We are able to its probably which offset the april or may seem so.
Of course can you get following one can you explain us distribution, but I feel delinquency situation on the company Guy sleep. These marker.
Thank you Jose.
Okay, let's see there.
We have facing right now I will be fine moved them anything to the situation though.
Yeah, I don't see britian generated by by Colby.
Are you considering Latin America, yet the majority yeah, yeah all of the county.
They want.
Golden Fort Myers.
Our job so Matt look down situation.
We think the nation economic situations worsen that's a concept there into the Ti <unk> between the thing that integration and economic situation.
D and E and we look at the situation with the companies do light show me, there Oh, yeah growing that train and actually we said though.
In addition.
The we don't see any major worsening of the bet that submission for example, you mix that men and women time.
Oh.
Let's say.
Backing from October we more than.
Button that your way, we can you talk Felicia.
Market.
So the reality right, we either so improving.
In that situation that women benign and.
Action on that.
We do.
See a consequence, and improving and that human losses.
And I went back.
Mm Hmm and when that will eat that it's working there on the financial side. We are discussing that's when you regularly.
Yeah. It sounds to me either yeah adjustment on the economic side, that's before nine degrees and putting some losses, so as well, yes. They can you break when they.
We do not want Oh, one or don't want that you'd be possible to to be Uh huh.
The people did not the b, that's when negotiating that the guy that money, that's quite a bit to me here.
Like.
The one.
The non Florida for Internet finance and only be economic side cooperating.
Nine degrees and Oh can be seen boxes.
[noise] okay.
Thank goodness mortgage.
[laughter].
No. We have received from Tomas enable challenged its course, you're like three questions. The first one is it falling.
Maybe impacts on distribution business.
A how many quarters since we take to recall that he said he kind of both our key distribution companies.
Hey, This is ahead of course, Kim so they they tanks you recall they did it got in the easier to growth.
I guess, what it needs to be showbusiness, taking into account they got integration.
The second question is the following embarrassing you have to cool contact creep 2.1 can typically change.
Like we said is actually not Gambino, Colombia and bidding when do we do not have assimilating. These had these.
He's going to entails an increase in international courses, we are going to react fee.
We have foreseen in Haggen financial goals due to the same situation, we could be for entering one but we have seen in brushing due to contact.
The second question Yeah. He is related to the concession internationally.
On the intention of identity and going into didn't recur.
Do you see this conversation.
Candice access on disappear on its intentions based model the humidity on east on these.
Okay, I mean that replied to the first and third and I believe that the last one.
HM.
So on radio.
Being that dining pretty cool that they said that you do me a <unk> on the loved it side that you can be.
And we stopped the how what it's done action before that the market.
That's good discipline and Oh in October that's going to them.
Hi, Jane Blah blah.
Yeah. It again.
I think I didn't get counted each that led to that.
Mm Hmm, yeah, not very much affected.
In the I do you expect that gas to.
Each year by just trying to get them or not.
Nothing in Colombia, So we knew in Colombia, we had not seen a situation liking that expedia and I'd be man.
Yeah, they got to be.
Or anything.
I did not right.
Not too there are in that venture their own <unk> more moving that up all your client, which the government.
Hmm and it didnt.
So deep discounts the mood that for US it's worked a lot under 500000 people over the 1 million rounded the corner, that's what on the People's insert Oh I use every sir.
And for the other one.
Let me.
Informing the payment that you now embedded in the ballot and they would be for the interest Uh huh.
Oh Isa improvement.
Oh, yeah, they got to be have been email side that we either.
We formed a financial point of view working justice infancy.
No increase burns are all right.
Thanks and lead the day then we have can meet so it is that it's a.
Fell a little in it.
I get to that's we have said during the presentation. The reality, we sold more than that you know not compete.
Okay, that'd be a divorce Oh Oh, yeah.
The concession whether the to.
Let me foresee that.
Mhm are really then so according to plan for.
The performance in terms of investment we have done or Oh.
Yeah he requested by.
Brick and enter.
Division of body for over 27.
Yeah of course, a little bit [noise].
[laughter] or is it.
[noise] [laughter].
[noise], okay, but I like the property that's already happening.
A few months or do you can do.
Yeah.
I'm getting added on to agriculture.
So operator.
So this situation I can get set.
Normal dynamic there yes.
And I think that jumping in context.
We do see.
And at some time show the reason for Oh.
Just to.
The town the complexion, none are shown in between.
And of course will be our water more cookie plane, yeah, I suppose you haven't seen there and that's when I do it the action HM economic community.
The news announcement be amazed by the need to find it and then it sounds Franco but didn't do that and that's where they're looking at the.
The.
The the traits and.
Social media you see.
Before the reaction and the action.
Another factor.
At the nickel production. So I think he said nautical miles north of mine by mine.
If you could come in the basin specific on this in Argentina, we don't see.
Any.
Lisa and in Saudi producing gas to me in action against the do there.
It's a confection like mood or do you see the corn based on that bridge, then there could be because to be action economic situation in Argentina.
Anything abnormal dynamically.
Okay.
[noise] head on.
And I really I didn't really.
Good morning.
[laughter] [noise].
Right.
[laughter] Dupilumab Yeah Campbell.
So the standard reviews, the financial cool this.
We made to shoot.
Our that.
No interest me.
Oh.
Yeah.
[noise] Oh, the commodity so think of Tomas for the for the question, Yes, you answer.
Pretty much a very well because what do you have seen right now when we got a vis vis networking kept those necessities, especially for example, there do you have seen for a company like hours in a very low cost a lower then what do we estimated in our guidance which means that.
We are doing a a event but the.
But in any gains that we are right, we're not assuming increasing our net our networking capital endeka indicative <unk> right.
Brett do you said the excellent type of Egypt, we have their contract will be to go the coverage will be paid by the demand in a in 50 mouse Oh, okay. So disease, so, but when we look at what does that both the simplest away Argentina will not increase that tonnage Sunday night, if we don't receive a the the money will not.
I would money up it for home and anticipate cash. So you are dealing a as a and so somebody show used to say like that what I lethal no their cash flow in Argentina, that's the way we deal or equal on deal, we're not seeing difficulties in terms of cash flow because well dissolution of Brazil is a different.
Solution, but the countries.
The regulation of the company's that implementing different ways, but solving the issues. The impact is the same for example, a body so as explain a bit from the room for example, which the government based the abuse for the low income a bear a customers Uh huh.
So what we had a sees that we're not seeing increasing our debts in doing dispute okay.
We are seeing.
Yeah, working in regulatory actions, but in any case, if we need we have very very low very low cost keep a beat it is a two to two <unk> credit lines and not and bilateral that's you true if we want and a very good the balance sheet book.
Vision.
We don't see increasing beats a this debt but in any case, we are very very strong in terms of financial position.
Let me add just one thing.
The endemic four counties, where you have different Oh ignition teams for example, in Colombia, where revenue GAAP.
Yeah.
Ignition team and this means that the at the mine waste coal burn the study to be into customers.
Even though that he said it got shouldn't be mine you will recall, there <unk> leading bank.
Exactly.
[noise] when you're thinking about he told me we continue to follow it cost him.
That comes from Ivankoe sometime in the movie Little Teeny.
Two questions. If it's one of these pick association on balance sheet and remain strong could you provide us an update on the company's plan.
For the liquidity management and by the end on the year, usually the first question. My second question, He's who we expect the guidance weve even be up like also to the next yes, I need to force on 21 until folks on 22.
Thank you.
I mean that I'd like to let's say right.
[laughter].
Let's see that yeah.
And of course there.
We are there are certain mm wouldn't white.
Because we do like that.
Colin.
Yeah, then that idea.
Of course.
You can have an impact on blinky doing one.
Once you get in our budget Btwenty blend do want we love.
And Oh.
I'd say for example.
On the call of duty.
Oh, the but that that would be down for assembly in the first Watford Oakland deepen the Wow.
Sure.
Of course.
And by that dynamic over that and then Nick and the reality right now we did see already they covering blanket Wendy.
That couldn't do didn't pull that he oh created the mm mm Blinky Glen do one there and they got to be the mine the demand.
Yeah, I would it be no electricity demand.
Of course, we had the ne and se there that is the.
I'm pleased that need to gas to speed up the economic difficulty.
In the reality mood that critics and bring the thatd be a could you. Please.
The two peak or a Mundo mine.
Well you would still be really in that Vito set for the economic recovery, meaning that they do they are doing you there the season images or the fact that.
My name is today, almost 100% reduction.
And they got to be Colombia, I would be.
Sina and action, we mine, but then that we have seen that if he could pick already over EUR nine.
Computed on the other side that the India that.
But I see soon increases in the practice Japanese absolutely the advantages as we said during the presentation order yeah out what are the vision mission.
They use it that the either.
Such there can be Albania.
[noise].
What do you.
Thank you and what do you look for the for your question I laugh out what is missing from these questions sorry, I didn't get.
[noise] [noise], yes I.
[noise] I think that there [laughter], that's one of the whole something would be one until from some 22.
[noise] what are your company.
[laughter].
What do you look it's oh, well, what we're seeing is that it's a is that can jump at all we frac right because we.
We give us services more and more than a sanction which is the lack the energy.
And Oh of course, a secret call it depends on the economy.
And what you as far as seeing is a is that these effect. It will will be called for a wouldn't see the economy will recall, where that's at some point right. So it's very difficult to estimate right now.
To make estimations, a as money so sad on or how it will be a in done in a in the interest and then.
Let's say in the next year well be they facts or what we're seeing from the gap in that says that the defective from a from Duane the Dwayne will or will it start to two to two recovered the level off Duane the 19th.
I'd like the handoff between between two and but again this is a guessing in nobody knows right, a especially not in Latin America <unk>, but again, we are very well prepared for the afford the situation though.
Okay, [laughter] Oh Wow.
Which is that video took time that you forecast is needed for the collection of that compensation related to their degree in your distribution companies.
Of course that Oh.
[laughter].
Yeah.
Yes, that's in place that he I'd, probably say demand Oh man deduction.
Right.
In the losses wants to.
Client that's too.
The colder losses, because they've got to do that in that or do you recall, there and the food targets as we said that no no, but I see no you do that stack. The immediately that are easy piece or backing from what the too.
So we can see there they are dependent on the yes, we can there be back there maybe a patient if you position even do a unique we expect people. There then there before.
The situation.
[noise] [noise] that lack of Gimoti too.
Let's move to Enrico Bartoli from Mainfirst, we got some questions on Brasil It huh.
One is related to a then you got the train packed in front of in contracting. It you brought him on the question is easy fair diesel the Kentucky, Kentucky will be covered it already covered it three studies increases. This is the first question.
We have a second question in Brasil, the which is related to impact of cone of can talk a leap.
On the equipment. He said will be counted revenues as of July.
And they said of course, the only related to the or something else. So Patrick already them on a over the next quarter since April independent that offending amerigas.
Therefore, if all say Acquisti D.C. you see we E sports he won't go sleep the guidance.
A body Ace you already know mitigate that he got point made 1 billion you are still lot of.
International right on say on account the basis.
On the last one is related to a Argentina the possibility to recover the effects of cobi their distribution business.
Okay. They got to do there that's correct, yes back over the seeks to I'm going to them.
Mm Hmm the on New York.
Due to us.
We will receive for clinical need there, we expect to receive over 500 or even though let me end of two light.
In the second track second the improvement.
One thing Mike Leigh.
As you May hear me back to them they baby I feel like due both to people that are impacting the future put it that it yes. If you can access to the Mexican is not all went back will be this <unk>.
The went up but we know they find on something you took a metric that you eat in anticipation and we decided to take over the next future.
Dave as we said that by the end there.
Good day.
Thank you.
You guys aren't there, which are simply been though the comedy of denying that mix with there.
Oh yeah.
Uh Huh, we said that we didnt.
We expect there to go Mary Lou will be.
Yeah.
Well really recall that it would be no.
Yeah.
The card.
It would be a need to be a deal with them. So over the course agree.
Let's see people you see there if you consider bidding and the major consumption by nine industry that I think they view now we signed at the same that no no operation. If you look after the segmentation of the Testament no no no duty to do.
HM.
This then then yeah, we would see that losing it lumileds and do they make the customers.
It is increasing the data consumption.
Not yet or are we couldn't deane.
To do they they need to the pull there are upon their production. The most uptick that said to me is local Mitchell one.
No.
Shops are seen in a restaurant and this would be the more they did the ER segment and Weve been.
Characterized by.
No weather.
All right.
Oh.
Backfill.
The fact, the old or thinks that stake there or.
And they did that guidance by anybody I removed vis a vis right now a radio <unk>.
Josh to.
Lever.
Sounds good numbers again do you.
Back the state's then there or whether that would be.
I'd be seen it is and then Jim pinnacle should be pretty covert effect. The so called do that in the distribution of course that Monday, the same and.
It's important I said before between domestic and messaging and not to them Oh.
Sure they got to be that there would be over it Susan and other than the maybe season demand.
Let's say that that the more at.
Strong impact on the PDP over there to E D.
And there the body frozen that's maybe gauge yeah managing.
Oh, My God, Sakes, Oh, and we either Oh, you should go.
Great.
Jeff.
Opex reduction touches Lee women being done it before towards insight.
Yes.
Oh, yeah, yeah that <unk>, yeah Yep.
Well regarding the effect so basically are basically to the link countries.
Or Brazil, okay.
As you know the fluctuation also asked every eyes are doing that and then it was very strong going on a and a it was a very.
Different to what we we consider we are considering you followed by the yet and around the 5.15 0.2 vehicles. You. Okay. Then we have Colombia as you know a regarding Colombia has its dependence on the commercial balances from our oil.
Prices on soon so there is a variation in the surprises that cologuard is pretty much affected with the exception radiation. So.
Kilometer second commentary I I would say four of these number off these 800 number they the 70 Sante is you separately you in Colombia, Okay, and they remain in part to sort of really in a in a in Argentina, but that May Park is Brazil, Colombia, or Dan or Argentina, Peru.
Yeah.
Well I think you know what are you thinking multi tier and this fall we definitely Christiane say Patheon Phillips from May one two questions.
My first one is related to attaining collection cycle hubs in the cycle, it's difficult second quarter for the phone companies in which we English we operate cycle I'm sorry.
But in particular into given the trend of making payments embed some vessels vitale and eating they've got good news media type of locally what have you list I think you can't you need to get things to improve collections on capex associated with these initiatives focusing better how is your relationship with regulators hot resin.
The second question.
If I got a two potential assets acquisitions, what is your opportunity set up the preference.
What do we see a bookings have not squishy shows you. The next seed eight months.
What is the money budget for the next 12 months what valuations.
If I don't feel for power.
Those other question.
Okay.
I really do two years anyway, the question, but let's say it and are they got the last one that you find if it correctly do you feel that we will look at the no then the group that you didnt them within this business correct. So Uh huh.
All right.
Yeah, Okay all right.
Let's see.
Lease it when you look at their own business. If you do that there is moving there among the four companies.
Uh Huh, we have said that they say yeah.
And then make out we are served the Sylvia.
The potential video distribution distribution business and of course, you name it leaks and business.
And there we are monitoring all CBU.
HM no damage to the do it with the due diligence, yes, yes, and leukemia <unk> mm.
I remember the 1.4 times that Dan.
A lot in kids.
That would be two people do opportunity just to get that are too.
Sure.
To be food, Lisa you took the dealer groups yes.
The first question that now can you repeat the constricting listen.
Uh huh.
Got any beforehand.
The two Dan Rabun Grantley of collections from very difficult have proposed not when before the cold, Okay rule, which we hope that they got to be focusing collection.
Yes, they got to visit including in collection. We did you actually took sample in the knarr mm they do.
We observed anybodys or.
Very little collection bets in Belgium, the Autobytel, 60% right now we are not collection pets in big though is more 90%. So easy I do know they yeah, okay, great beauty quoting substantially collection.
But I feel that they said before we did start then action that substantial then action backing from existing and with a full but in the Alaska or three four months old media and.
We are confident we'll do that.
Recall were substantially collection that there are they gotta being there are they got a big.
Hello, Yes, even do that was Michelle.
The increase in there in the last season and for this lease Hmm collection, we see that the situation you're right you sounded like a in Argentina.
Of course, there or would you be they'll do the.
The usual action then so nothing really call that a collection.
We expect that that's when they're not to do not before that by the end over the year.
Yeah, yeah behind that that can be the collection that make buy it looks as saying that pretty cold beauty.
The second one than the tandem <unk>.
Let me, let me add to succeed because I think Patricia thinking for the question. Chris You also ask at the bulk or our Oh, our strategy in terms of Capex two to three prove to the digitalization to payments Nazis UCO insulin.
Yes. So we are ER visits on opportunity because what you're seeing is uptime compressing and we are accelerating our digitalization process in terms of topics. So we are anticipating our plan in order to to improve.
Every both payments different both operation, the safe still pretty or something else.
Degree in terms of <unk> relationship with the regulators are I think is in your I can sit tell you read regarding Brazil regarding two would go longer or.
This is a this situation is proving that we have very good regulate regulation.
Very resilient regulation models of course, the Sogou some cannot be the same as motifs was explained there are different models. So this solution must be well supplied to each model. So what we have seen is that.
Hello.
Having a very mature and very good level would be a of discussions.
Not only in Brazil, but also grew and also in a in Colombia understanding that a that everybody's learning with this process is right Oh, we as you know you mentioned also the summer some Ah Ah you frac seem to be good regarding the payment.
Yes, I'm learning process, we are investing a lot.
Social media communication you not for two to decide to pass through disputed little discredited not better better shape comes up relationship with our with our customers. We are very confident in our capabilities and in our strategic plan.
Let me Oh, they do on fronting there and that she has to be expedia until this month.
Got to be digitalization not usual.
Oh.
Conceding that the export name by name and then so utilization conceded that continue to grow not me. It wouldn't be then no we add all our system.
Oh, the fact that we had the system allows for example is allowed to have yet to be indicate dahua considerably.
He does not either not the more related to PC Guy or act.
Mhm lung hot stuff that HM.
Do you do Ben so.
You bet and Super.
Fixed gordmans getting out of musical much outside there was a for us if we have to friends lead time.
Josh their names out one did you got to speak with you can niches that we will lose the on our to go nature or field offices into account, but it's a restocking josh to need that strong that yeah.
If they don't promotion allow what did you got like things and that in the county like had to do not that I spend.
Uh huh.
Yeah, So my life and usually at the best individual people being there and it wouldn't be utilized density is very low.
It was quick you know try.
But you didnt goals that we have done a look Dolby induction there they got to do the peak then we get there now or at the moment back very quickly I have to see the fusion or are there and then you can have been dina.
The books, you BBB or all the collection legal collection.
Hi, good he did you thought that yeah. The order that all got 70, 80% so.
It's substantial improvement I think that they would be something that the colby their media we leave us.
The way of course, we limit and ER.
Type of business, but that's where we like the ones or contact let's just keep the relationship we blew out there our the captain similar right now the only counting reach yet we reopened out why that Mr. Little kids, it's been.
We are doing that Lisa and I read the news or local C. B.
The safety.
Yeah, I did that that we are beginning to be opportunity that people out in the Q2 continue there.
Fusion or did you got addition, a real big and we are getting that why or why the effective. So yeah. I think that de said folks you do that you see listen I'm moving there will be there can be.
Thank you. Thank you Patricia you listed let's take care to all these going on of course, you know some better than anyone else they wouldn't be outside I'd be a.
The following one you see Alexandre a laptop see from La India.
Unfortunately, the following.
With respect that to focus on Plenti, a low what revenues he brasil due to lower the Bob will be fully compensated by I get about even into force on 21 and was studied review.
Thank you Alex.
Okay, well could you give the making which works you be it'd be the mission.
I see usually after one yet they would be viewed the level of the mine there are no.
Inflation, but nevertheless, fix it and they do it and be sure another thing.
For example.
Yeah right now.
And that was the time or could it be shows of the types.
Yeah, we like that Additionally, the study to help out.
It by the calculations and at the mine, but Texas sake, and yeah I.
It was supposed to increase that that is for what they're saying of course. This was not the PC Board beauty, we speak here and we used by.
Bob Dole, the plaintiff will be Jack you know that but that is increasing so powerful and the threat that same but that is increasing so powerful now we see bidding drove a 4.2. So for this reason I have to say that the and then it's oh.
He said it later this fall.
These are superior to buy a BBB.
Oh, the ER ended you might get them or they are.
They are are they.
Better biking that.
The customer.
Can I can confirm Deane dray the in community over the service would be not being thrown increase the entirety us.
No one month LIBOR floors.
Meanwhile, or government should be blades.
Action gaps, where they make economic recall that he the thing that he could be done now do in Colombia sounds good and time no we see.
Or even doing there.
Good active dialogue, we pick later and now let him answer we either.
Yes, either early thoughts and then sold.
Sustainable tight Walter capital murder and come to you deal with that said at least in that we took the lead that now and no but I see it didn't need just to avoid there the use of action there and bottom chain that can be energy sector needs.
Disease that distribution called than you do little would it be man.
We're not being that the energy.
They buy from the many but that's the point that the between denominator and it'd be reported that they could be put into movies. The reason why wouldn't that will lead the recall, there and the cold or do you still get there between demand and the.
In the energy contract with the FEMA sort of conducted in June.
I can't give all retail and then of course, you don't pay reissue audit Committee along the course any the following all the guidance that he's going to affect your dividend policy to for sometime.
I'm going to thinking about yeah.
<unk>.
It's pretty cool in Saudi Arabia regret.
Okay.
Thank you have yet we are.
No maintaining our dividend policy.
Of course, we need to see the development in the second the second half, but until now there's no change in our you know or do you plan to the extent bodies mm.
Which is 50% by the way.
Okay, well. Thank you yeah fitness had before a that have been acquisti insanely be complete at maybe I'll sort of baby relational Steve We've got some other questions.
It would be say with these questions don't have yeah, we conclude the restaurants confidence confident in Americas fresh <unk> light.
Let me remind you that they missed the nation's pinochet unusually severe yellow put any though that you make up.
Thank you for your attention on its face.
Ladies and gentlemen, this concludes today's conference call. Thanks for participating you may now disconnect.
[music].