Q4 2023 Enel Américas SA Earnings Call

Operator: Good day, ladies and gentlemen, and welcome to Enel Americas' 4th Quarter 2023 Results Conference Call. My name is Gigi, and I will be your operator for today. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising that your hand is raised.

Good day, ladies and gentlemen, and welcome to Enel Americas fourth quarter 2023 results conference call.

My name is G G and I'll be your operator for today.

To ask a question during the session you will need to press star one one on your telephone you will then hear an automated message advising your hand is raised to withdraw your question. Please press star one one again.

Operator: To withdraw your question, please press star 11 again. This presentation contains statements that could constitute forward-looking statements. These statements appear in a number of places in this presentation and include statements regarding the intent, belief, or current expectations of Enel Americas and its management with respect to, among other things, Enel Americas' business plans, Enel Americas' cost-reduction plans, and Trends Affecting Enel Americas' financial condition or results of operations, including Market Trends in the Electricity Sector in Chile or Elsewhere, Super Such forward-looking statements reflect only our current expectations, are not guarantees of future performance, and involve risks and uncertainties.

This presentation contains statements that could constitute forward looking statements.

These statements appear in a number of places in this presentation and include statements regarding the intent belief or current expectations of Enel Americas and its management with respect to among other things.

Yellow medical's business plans and allow medical cost reduction plans and trends affecting enel Americas financial condition or results of operations, including market trends in the electricity sector in Chile or elsewhere.

Super vision of regulation of the electricity sector in Chile or elsewhere.

And the future effect of any changes in the laws and regulations applicable to enel Americas or its subsidiaries.

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 in the forward looking statements as a result of various factors. These factors include a decline in the equity.

Operator: Actual results may differ materially from those in the forward-looking statements as a result of various factors. These factors include a decline in the equity capital markets, 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 Enel Americas' Integrated Annual Report. Readers are cautioned not to place undue reliance on those forward-looking statements, which are valid only as of their dates.

Capital markets and 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 Enel Americas integrated annual report.

Readers are cautioned not to place undue reliance on those forward looking statements, which state only as of their dates and yellow Medical's undertakes no obligation to release publicly the results of any revisions to these forward looking statements except as required by law.

Rafael de la Haza Casarrubio: Enel Americas undertakes no obligation to release publicly the result of any revisions to these forward-looking statements, except as required by law. I would now like to turn the presentation over to Mr. Rafael de la Haza, Enel Americas' Head of Investor Relations. Please proceed.

I'd now like to turn the presentation over to Mr. Rafael de La Rosa and then Americas head of Investor Relations. Please proceed.

Rafael de la Haza Casarrubio: Good morning, ladies and gentlemen, and welcome to our fourth quarter 2023 results presentation. I am Rafael de la Haza, Investor Relations of Enel Americas. In the following slides, our CEO, Mr. Aurelio Agustillo, will be presenting the main figures of the PDM. Let me remind you that this presentation will follow the slides that have already been uploaded to the company's website. Following the presentation, we will have the usual Q&A session, and questions, as you probably know, can be made either through the telephone line or through the webcast of Enel Americas S.A. Now, let me hand over the call to Aurelio, who will start by outlining the main highlights of the period on slide number three. Thank you, Ralph.

Thank you.

And as we add to the modeling.

Welcome to our fourth quarter, 2020 period, which adds to the sanitation.

NASA Investor Relations professional luxury goods.

I think that lifestyle.

But other than the CEO will be presenting the main figures of the period.

You can argue that this presentation will probably be a slight.

Already uploaded into the company's website.

The presentation, we have the usual Q&A session.

Yes.

You probably know it can be both.

Telephone line.

Yes.

Thank you guys.

Now, let me hand over the call.

Let's start by outlining the many highlights of the media.

Number three.

Thank you.

Aurelio Ricardo Bustilho de Oliveira: Concluding the fourth quarter of 2033, we have continued with our Renewable Generation Plans execution. 600 megawatts of new capacity, totalizing 1.8 gigawatts during the year. With this, our matrix is now around 90 percent renewable, in line with our energy transition goals. Adjusted EBITDA in 2023 is expected to increase by 9% compared to last year. FIT considers homogeneous perimeters, meaning that we are including results from Peru in both periods and excluding Vote Ready 32, Fortaleza, Goyaz, CIEM, Costanera, and DACSU, as we do not consolidate those companies anymore.

We didn't before.

<unk> typically had.

With our new logo generation execution okay.

And with Mega watch at EBIT to keep capitalizing won't they.

During the year.

Our matrix is now around 90% renewal.

The $1 <unk> goals.

Adjusted EBITDA and <unk>.

We could by 90% compared to last year.

Each patient days and a genius.

Meaning that we are improving.

In both periods, excluding both <unk> Fortaleza.

Yes sure.

X gene as we did not consolidate those companies anymore.

Aurelio Ricardo Bustilho de Oliveira: We are also excluding the effects of the price increase, which had a negative impact of 108 million dollars, and also excluding a one-off effect which entered last year in Argentina coming from the agreement between Edesul and Canessa in connection with past deaths. This improvement is mainly explained by better results in the distribution business in Brazil and renewable species. Groupman Income reached $0.9 billion in 2033, an important improvement compared to the negative results that we had in 2033. This result is probably in line with the guidance that we gave in our certificate presentation. Regarding our corporate identification process, recently the antitrust entity in Peru, in the copy, gave its approval to the sale process of Enel Distribución Peru. With this, we continue moving ahead on the disposal plan as announced. In the coming slide, let me show you a summary of our main indicators in a homogeneous view.

We are also excluding FX.

We had a negative impact.

$8 million.

And also <unk>.

<unk> received last year.

Revenue from the agreement between <unk> and <unk>.

Important action, we expect.

David.

It's mainly explained by better results in distribution business in Brazil, and renewed renewable species.

Yes.

Nine.

$9 billion of J P J D.

Great.

Importantly, due to weak compared to the negative results that we've had.

Thank you Qi <unk>.

So it's broadly in line with the guidance that we gave in our strategic plan presentation.

Regarding our corporate simplification classes, we compete.

Rich MTBE in the coffee gauge.

Google Seo promptly software distribution.

Distribution fee.

We continue moving ahead on the disposal plan.

Downstairs.

Thank you Michelle.

Our main indicators.

Aurelio Ricardo Bustilho de Oliveira: This means excluding both ill-sold assets, Cotaneda, Goiás, Cienfuegos, Taner, and Dachshund, and including Peruvian assets, which, as you know, are in the sale process but still part of our operational period. In the generation business, we significantly increased our installed capacity and net protection thanks to the deployment of new renewable policies, in line with our decarbonization strategy. We increased our customer base in energy sold, while smart meters grew more than two times, reflecting the importance of electrification and digitalization in our company.

Homogeneous view.

Excluding both periods so.

Deliberate way out west.

She can include ILUVIEN assets, which as you know our CEO.

Process, but skewed park of our.

<unk>.

Yeah.

In generation basis, we significantly please our east Gulf capacity and net prediction.

The deployment.

Deployment of new renewable policy.

In line with our Decarbonization strategy.

Great.

We increased our customer base.

So while smart meters grew more than three times, reflecting date, Portland, salt electrification and digitalization.

Okay.

Aurelio Ricardo Bustilho de Oliveira: Our financial indicators showed a very positive performance, improving EBITDA and net income, with our net debt to EBITDA ratio slightly increasing compared to last year. All this reflects that we are performing in a solid manner, and our navigators are improving across our business. That's the one I like; our operational highlight is like that.

Our financial indicators show, a very positive reforming.

Along with improving EBITDA and net income with our net debt to EBITDA ratio slightly increasing compared to last year.

All.

Correct.

They're forming a solid manner.

And our main indicators are improving across our business.

Yeah.

Yes.

Our operational highlights as lifestyle.

Aurelio Ricardo Bustilho de Oliveira: In the generation business, during this year, we have added close to 1.8 gigawatts of new renewable capacity. Considering the sale of Costanera, Tocxul, and Thermo-Catahena, we reached 14.6 GW of installed capacity, of which 90% is renewable. Net production in the fourth quarter reached 11.3 TWh, a decrease of 12% compared to the same period last year, although explained by the consolidation of Costanera and Doc Sue with the consolidation of Costanera and Auxu.

In generation business during the year.

Half.

Close to one eight gigawatts of new renewable capacity, considering the sale of our sports that data doesn't suit in Denver for Diana <unk>.

14.

So lots of things about capacity from reached 90% renewable.

Good that certainly the fourth quarter, reaching 11, three terawatt hour.

Greed of 12% compared to the same period of last year.

Explain it.

This gives us solid data and of course, Danita and vaccine.

Sorry.

Hi.

Thanks, Jeff.

Industrial isolating these effects prediction, which have improved it by 4% explained by higher generation in Brazil.

Aurelio Ricardo Bustilho de Oliveira: Isolating this effect, protection would have increased by 4%, explained by higher generation in Brazil. From our total production this quarter, 88% was emission-free, a significant growth compared to 74% of the same period last year. Energy sales decreased by 12% during this quarter, reaching 18.4 TPH, mainly due to changes in the perimeter.

So total production this quarter.

Eastern Missouri.

Significant growth compared to the second floor of the same period last year.

And then to say the creative output in doing this quarter, reaching 18.4 data about power mainly due to.

And can change either.

Aurelio Ricardo Bustilho de Oliveira: Isolating this effect, sales would have decreased by 3%, mainly explained by lower sales in this quarter. We will focus on our development of renewable capacity. During 2033, we added 1.8 gigawatts of new renewable capacity, 897 megawatts in Brazil. 507 MW in Colombia, 300 MW in Peru, and 47 MW in Panama, with an investment of $1.3 billion U.S. We are currently working on an additional 0.8 gigawatts of capacity under construction located in Brazil and Colombia, 0.2 gigawatts of wind projects and 0.6 gigawatts of solar projects. Also, this new capacity will begin operations in 2024, and only 20 megawatts will enter operation in 2022. Regarding our pipeline, we are considering 48... 48 gigawatts of new capacity, total pipeline, from Deepound. 20 gigawatts are in the early stage, and 36 gigawatts are in the mature stage.

Isolating these effects sales would have decreased by 3% mainly explained by lower sales in Brazil.

On slide six we will focus on power development of renewable capacity.

33 to 53.

One eight gigawatts of new radio.

897 megawatts in Brazil.

In fact, our Mega market in Colombia, 300 megawatt <unk>, Peru, and 47 megawatts with an investment of $1 3 billion in U S dollars.

We are currently working on additional voice eight gigawatts of great market given their first injection located in Brazil and Colombia.

Two two Gigawatts hour week project in <unk>.

Gigawatts of solar projects.

Most of this new capacity will begin operations during 283 before.

Only to 80 megawatts will enter into ATP with five.

Regarding our pipeline, we could see the 48 48 cheaper lines of your capacity total pipeline from deep amount.

So 80 Gigawatts already staged.

<unk> are in mature stage.

Aurelio Ricardo Bustilho de Oliveira: In addition to these, we have around one gigawatt of battery energy storage, and we are also considering 0.8 gigawatts of projects under construction, already mentioned. Let's continue with the reinterpretation of highlights on the next slide. Sponsored ADR, Electricity distributed reaches 39.2 terawatt hours in the Gulf waters. I need printing, of six identical batches distributed last year, in a homogeneous perimeter, explained by hired sales in Brazil, Colombia, and Peru.

In addition to BS, we have around one gigawatt battery energy storage.

We are also considering oil pay as you go.

Our projects under construction already mentioned.

Excellent.

The operational highlights.

Next slide.

Okay.

Okay.

Electricity distributed regionally.

$92.

EBIT for Boardwalk.

Rich.

Please.

Paul.

At the same store beds as it did last year.

And the <unk> spirit.

<unk> by higher sales in Brazil, Colombia, and Peru.

Aurelio Ricardo Bustilho de Oliveira: With every number of customers, we had an increase of around 450,000. $60,000 in the last 12 months, which gave us a $3.8 million cut. Not meters, it is around 2.4 times which... $709,000 in this period, mainly due to the deployment in Sao Paulo. Our net Roth has increased by 14% in the last 12 months. Reflecting the significant investment that we have made in our region, the range of NetHack per customer also reflects an important growth of 12%.

Regarding yield there.

We had an increase of around 406000 in the mix the EBIT in the last 12 months, reaching <unk> three 8 million customers.

Not in the business.

Q4 time.

709000 in this period, mainly due to the deployment in Sao Paulo.

Our net.

Ed has increased by 14% in the last 12 months, reflecting the significant investment that we have done in our agreements.

We're already seeing net pack.

It also reflects an important growth.

12 weeks.

Aurelio Ricardo Bustilho de Oliveira: In terms of quality indicated, we can see a worsening in Argentina explained by the extreme high temperatures that we saw during the summer of 2023. Colombia, the regulator changed the criteria used to calculate the indicators, which implied an increase both in Saidi and Sad. In Colombia, MEDD, the state-established regulatory targets, established... targets managed to exceed 21% in Saif and 4% in Saif in 2020. We want to pursue, despite the difficult climate events that we had in Sao Paulo and Rio during the 4th crisis, Saidi remained flat while Saif took... Finally, in Peru. As we have seen in the previous quarter of this year, we also have worse numbers due to a change in the calculation criteria compared to last year. In terms of energy losses, it improved in Argentina and Brazil, remained flat in Colombia, and increased in Peru.

In terms of in terms of quality indicators.

You can see.

Awards and he didn't even extended by extreme high temperatures that we saw during December eight to 80 283.

Colombian regulated changes the correct data used to calculate the cadence, which implied an increase both these tight.

And in Colombia.

That established regulatory targets Stablish.

Targets and managed to exceed from 281% in fact, you did 4% inventory.

Regarding Brazil, despite the difficult climate.

James that we had in Sao Paolo and Rio during the <unk>.

He would remain flat while <unk>.

Finally, the food.

Yes, we have seen in previous quarters. This year. We also had worse number its duty of change in the calculation Greg needed.

Peter.

In terms of energy losses.

Improvement in Argentina, and Brazil, mainly flat equal loan to include that in period.

Let's analyze our investment.

Of the period in the coming slides.

During the quarter that each year, our capex decreased by 45.

Aurelio Ricardo Bustilho de Oliveira: Let's analyze our investment for the period in the coming slides. During the fourth quarter of this year, our capex decreased by 45% compared to the same period of last year, which is $772,000 million U.S. dollars. Without the impact of changes in perimeter due to the exposures in Fortaleza, Enel Goiás, Cien, Postalina, and Dobson, CAPEX would have decreased by 39%, mainly as a consequence of lower investments in the generation business and in Colombia and Peru. From the total amount, 65% was invested in Brazil and 22% in Colombia. While, in terms of cases... 52% defaulted to renewables and 41% to green.

Prior to the theater of last year, reaching 772.

Million U S dollars.

Isolated the impact of changes in perimeter due to the disposal of the portfolio.

Western Union upstream Capex would tap we agreed that by 39% mainly as a consequence of lower investments in generation business.

In Colombia and Peru.

The total amount of 65% was invested in Brazil and.

82% delinquent loans.

While in terms of gateways.

52% default.

To renewables and 41% dividends.

Gross Capex reached 490 million U S dollar.

And whats mainly devoted to renewables.

Practices.

Hosting the accumulated period Capex deployed fleet needs two.

Aurelio Ricardo Bustilho de Oliveira: Growth topics reaching 409 million U.S. dollars and was mainly devoted to renewables with AT5. Considering the accumulated period, CAPEX is rated with a 3, reaching $2,963 million, 17% lower than 2018. Excluding the Pyramid Effect.

<unk> thousand $963 million.

17.

Lower dental indicating G X.

Excluding the favorable effects.

Capex would have decreased by 5% also explained by lower APAC for the generation business in Colombia.

<unk>.

Now I will comment.

All the financial results of the period in the next slides.

Aurelio Ricardo Bustilho de Oliveira: CapEx would have decreased by 5%, also explained by lower investment in generation business in Colombia. Now I will comment on the financial results of the period in the next slide. If you buy the fourth block, it reaches $849 million. 51.5% lower than the same period of last year, mainly explained by the fact that we do not specialize in focalism where, C.M. Costaner and Doc Schultz in this period, and to a significant one-off effect registered last year in Argentina in connection with the agreement between NEDESUR and Argentinian authorities regarding debts with Camisa, which implied a positive impact of $220 million, to do, On a cumulative basis, adjusted GDP died in 2033, reduced by 8.6%, mainly due to better results in grids, business, in Brazil, due to higher tariffs and higher results in renewables.

Thank you David fourth quarter reached $849 million 31, 5% lower than the same period of last year.

Mainly explained by the fact that we do not consolidate the portal is underway at <unk>.

<unk> induction.

Bill.

To a significant one off effect, which is exactly in entertainment in connection with that agreement between edit suite.

In Argentinian authorities regarding deaths with laser which is by the positive impact of 203 million.

Neil and less to us if we exclude the defect and also include the resulting due as of late.

In fact, we get some answers to their developed 90 $192 million a decrease of 8%.

Technical barrier to the same period of last year.

On a cumulative basis, adjusted EBITDA and to integrate the fleet needed by eight 6%, mainly due to better results in <unk> business in Brazil.

<unk>, hi, it's adequate and.

Higher results in renewable basis.

Net financial results was a net expense of $233 million.

Hi, Eric space of 37, 7% compared to the fourth quarter of last year.

On a cumulative basis next five Mesa results with a net expense of $742 million, mainly due to a high EBIT, it's right thing to do and Colombian airports.

Aurelio Ricardo Bustilho de Oliveira: Net financial results were a net expense of $233 million, which is a higher expense of 37.7% compared to the fourth quarter of last year. On a cumulative basis, net financial results were a net expense of $742 million, mainly due to higher interest rates in Colombia with an increase in gross debt in Colombia. The net income in the first quarter reached $82 million, which represents an increase of 38% compared to the same period in the 18th century.

And increase Edf's debt in Colombia.

Net.

Profit, reaching $82 million, which represent an increase of 38%.

It's a good think view operated inventory.

Mainly explained by negative impact, which shifted last year.

You got me from the sale at the end of the glass.

Cumulative basis.

That even once ate.

<unk>.

$64 million, which compares positively to last year results, which was affected by the assets sold individually.

Finally, there is that we.

We see a reduction of four per therapist cyclical correction December ethylene at AG re.

Aurelio Ricardo Bustilho de Oliveira: This is mainly explained by the negative impact registered last year coming from the sale of Enel Gold. On a cumulative basis, the opening income was $864 million, which compares positively to last year's result, which was affected by the assets sold. Finally, in terms of debt, we see a reduction of 4.7% compared to December 2020. We will analyze in detail our tests later. On slide 11, we'll see a negative evolution and break.

We will analyze that through our.

Our escalators.

On slide 11, we'll see in EBITDA evolution and breakdown.

Starting from 1230 $9 million of EBITDAX.

Full quarter directly related to Wil.

To exclude $220 million can you kind of one off registered net as suey in connection with the America Thats agreements and also $77 million stemming from an outflow Italians integrate <unk> <unk> food in order to make it comparable with the fourth quarter of 'twenty three.

And we see that.

Some brief investment businesses had lower results compared to last year.

Aurelio Ricardo Bustilho de Oliveira: Starting from $1,239,000,000 of IDDAC, for Quadra 2022, we have to exclude $220 million coming from the one-off registered in Andes Suri in connection with the Caneta Debt Agreement and also $77 million coming from Enel Fortaleza, Enel Goya, Cien, Costanera, and Doc Suri in order to make it comparable with the For Quadra 2022. Then we see that Generation 3 investment businesses had lower results compared to last year, may be as a consequence of higher energy purchase costs. With this, we get to an EBITDA of $2,831 million for Q4 2022, which is 50% lower than last year, considering the favorites. Facts had a positive impact of $28 million, resulting in a reportedly disaster of $849 million. As already mentioned, the Terubian assets are considered discontinued operations, meaning that its result is considered below the EBITDA level. If we consider EBITDA coming from Peru, we get to an EBITDA of $1,024 million. From our reported data, 64% came from Brazil, 33% from Colombia, and 4% from Central America.

Mainly as a consequence of higher energy purchase costs.

With that we'd be we'd get to an EBITDA of $851 million for fourth quarter liquidity ratio, which is 15% lower than last vehicles during that same period.

<unk> had a positive impact.

The $8 million, resulting in a reported the EBITDA for this block of eight.

$149 million.

As already mentioned two of them that are considered discontinued operations, meaning that results in scope the lower EBITDA level.

We can see there it'd be back can be from Peru, we get to an EBITDA of 1030 $4 million.

From a reported <unk> reported EBITDA of 64% came from Brazil.

3% from Colombia, a photo from Central America.

In terms of business line, which represented 59% of <unk>.

Our EBITDA and <unk>.

Generation.

In generation, 31% ex political debuted with 11%.

Let's see EBITDA breakdown on a cumulative basis in the coming slides starting point for $2 billion U S dollars effective <unk> would have to exclude <unk>.

$638 million coming from asset disposals, and one off.

And you know that sooner.

And we see that we have positive operation results in generation and grid businesses.

While customer decree.

With this we get to an EBITDA of $3 9 billion. Thus far this period, which is 10% higher than last year, considering the same period.

Aurelio Ricardo Bustilho de Oliveira: In terms of business line, we represent 59% of our EBITDA in generation, 21% in generation, and customers contribute 11%. Let's see if it's a breakdown on a cumulative basis in the coming years. Starting from 4.2 billion U.S. dollars of 89 to 83, you have to exclude... $638 million coming from asset disposal and $1.5 billion. Then we see that we have positive operational results in generation and great business, while customers agree. With this, we get to an EBITDA of $3.9 billion for this period, which is 10% higher than last year, considering the same period. The effect had a negative impact of $144 million, resulting in a reported GDP for this year of $3.75 billion, in line with the guidance, even a few months ago in our certification. EBITDA from Peruvian operations was $691 million, reaching with this an EBITDA of $4.4 billion.

<unk> had a negative impact of $144 million, resulting in a.

Reported EBITDA for the year of 375 billion U S dollars in line with the guidance given a few months ago in our strategy.

EBITDA for Peruvian operations was $691 million, reaching.

And EBITDA was $4 4 billion U S dollars.

From our reported EBITDAX, 60% came from the ZIP code, it's ever cassette from Colombia, and duplicate from Central America.

In terms of gateways line greed represent 53% of our EBITDA and generate some 39%.

Kristen it's going to be there.

The remaining 9%.

On slide 13.

We will have a focus on the cash flow of our company.

Starting from an EBITDA loss.

<unk> 3000, 749 million U S dollar net working capital amounted to nine.

<unk> $650 million, mainly explained by the debt and pension provisions in Brazil.

Next page during the period amounted to $643 million, while net financial expenses amounted to $869 million.

Aurelio Ricardo Bustilho de Oliveira: From our report of the disaster, 60% came from Brazil, 37% from Colombia, and 3% from Central America. In terms of business lines, REITs represented 53% of our data and Generation 39%, with customers contributing the remaining nine. On Flight 13, we will have a focus on the cash flow of our... Thank you for reminding me to dial.

We've needs.

Both funds from operation about two 1630 $2 million.

<unk> of 1050 $2 million compared to the same period of last year.

After investing in off Florida, 2720, $2 million included the 1005 lender and an $8 million of rolling Capex, we get to a free cash flow of one.

Aurelio Ricardo Bustilho de Oliveira: $3,749,000,000 U.S. dollars net working capital amounted to, minus $650 million, being explained by the debt and pension provisions in. Tax paid during the period amounted to $643 million, while net financial expenses amounted to $869 million. We keep FFO funds from operations amount to $1,632 million, a decrease of $1,052 million compared to the same period of last year. After an investment of $2,728 million, including the $1,508 million of gold capex, we get to a free cash flow of minus $1,107 million for the period. Let me now analyze the debts of our company on the following slide. Gross debt amounted to $8.1 billion, an increase of 1% compared to December 2018, mainly explained by higher debts in Colombia and in Enel Americas as a whole, although partially offset by the deconsolidation of assets available for sale in 2033 and lower debt in an area in Brazil. Net debt reached $6.5 billion, a reduction of 5% compared to the end of 2020.

Minus 1100 $7 million.

For the for the period, let me now analyze the depth of our company in the following slide.

Gross debt amounted to $8 1 billion sneak leads of 1%.

Compared to December 2022, mainly explained by higher debt in Colombia, and annual Americas Holdings, partially offset by the deconsolidation of assets available for sale.

The three <unk>.

Lower debt in Asia.

And in Brazil.

Net debt, which is six $5 billion.

Production of five for the same compared to the end of two ATP into treatment.

These includes freakish flow for minus $1 $1 billion net gigabit speed four minus $345 million.

Extraordinary operations for $1 $6 billion related to just say roughly yes, Anita vasu.

Net debt deconsolidation for $866 million and FX effect for minus $700 million to $86 million.

In terms of currency country, we see that Brazil remains at the largest county deal why are the net debt.

Debt at holding level represents 50% of the total.

Finally regarding the cost of debt, we can see an increase for disputed going from 5% to 12.

Sue.

Aurelio Ricardo Bustilho de Oliveira: This includes free cash flow for minus $1.1 billion, net dividends paid for minus $345 million, and extraordinary operations for 1.6 billion dollars related to the sale of Goyaz, Costanera, and Dachshund. Next step, deconsolidation for eight.

Currency mainly explained it.

Higher interest rates in Brazil, and Colombia.

On the next slide I will conclude this presentation with some closing remarks.

Yeah.

Yes.

It can easily take a feat we completed several renewables projects moving ahead on our decarbonization strategy at the same time, we have.

Aurelio Ricardo Bustilho de Oliveira: $166 million, and the FX Effect for minus $726 million. In terms of currency in the country, we see that Brazil remains the largest contributor while the net, while the debt at holding level represents 50% of the country. Finally, regarding the cost of debt, we can see an increase for this period going from 10.5% to 12.2%, mainly explaining it by the entire industry in the Dominican Republic. On the next slide, I will conclude this presentation with some closing remarks. During 2023, we completed several renewable projects, moving ahead on our decarbonization strategy. At the same time, we have devoted an important amount of capital to ingredients. Visiting. Quality of Supply Digitalization and Electrification.

Devoted bulk with the amount of Capex ingredients businesses boosting.

Quality of supply.

We presented data in electrification.

Yeah.

We are really focusing aiming to improve.

Quality indicators quality protection for our customers in our Pud inventory.

We had solid operational results and maintaining a sound financial position, which allows us to execute our capex plan.

Regarding our corporate simplification process.

Our asset disposals plan is well on track and then.

<unk> has a full with the cellulosic distribution assets.

We expect.

To test all of the operations group in the coming months.

Finally, let me remind you that the end of April and we will do our we'll have our shareholders' meeting and we deliver more information about it in the company.

Okay.

Thank you.

Got it.

Please go ahead for the Q&A session.

As a reminder to ask a question. Please press star one on one on your telephone.

Aurelio Ricardo Bustilho de Oliveira: We are really focused on aiming to improve quality indicators and quality protection for our customers in our country. We have solid operational results and maintain a sound financial position, which allows us to provide our GAAP explanation regarding our corporate signification process. Our asset disposal plan is well on track, and the Trust Entity Group has approved the sale of the distribution.

Wait for your name to be announced to withdraw your question. Please press star one to one again.

Please stand by while we compile the Q&A roster.

Okay.

Our first question comes from the line of Javier Suarez from Mediobanca.

Hi, good morning, and thank you Aurelio.

Okay great.

Two our Quaker online site.

One is done.

On the a.

A level of debt.

Operator: We expect to have all the operations concluded in the coming months. Finally, let me remind you that at the end of April, we'll have our shareholders' meeting, and we'll deliver more information about it in the coming days.

Yes.

Competing.

Yes.

Yes.

And by the end of November so it will be.

At that time.

I think that the company working on that.

Debt to EBITDA.

Operator: Thank you, Aurelio. Very clear. Operator, please go ahead with the Q&A session. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.

One four times.

With final numbers.

Hi.

In that they have been.

Perfectly modern networking capital.

And then any unexpected weakness.

Recent Hawaii.

It seems a bit high.

What work indicated that the latest update.

Operator.

Javier Suarez: Please stand by while we compile the Q&A roster. Our first question comes from the line of Javier Suarez from Medio Banca. Hi, good morning.

Then the second frequently company economic debate on price.

On the slide number five.

So yes the.

The data on <unk>.

Perfect. Thank you.

The adjusted number.

So I would not be.

Rafael de la Haza Casarrubio: Thank you, Aurelio and Rafael, for the presentation. Two or three questions from my side. The first one is on the level of debt and net debt to EBITDA, and that is comparing your numbers with the targets that you presented by the end of November. So I remember that at that time, I think that the company was indicating a net debt to EBITDA of 1.4 times.

And it is also on the adjusted EBITDA.

Number three you can elaborate on on Hawaii.

It's a great opportunity.

Great.

Yes.

And the better pretty quickly if you can.

Our paper.

Dividend policy of the company.

We view our pretax earnings delivery.

But the thought is that you presented.

For 2000 and breaking parts manufacture.

Cool.

Hello.

Thank you Javier.

Helpful.

Explain a little bit above.

About their methodology.

Well I'll say it any better.

Thank you <unk>.

Great.

I think the first fourth quarter as you know is you are right we have.

The level of $41.

Rafael de la Haza Casarrubio: The final number has been a little bit higher. I have seen that there has probably been more networking capital absorption than initially expected. So the question is, can you elaborate on the reasons why the debt seems a bit higher than what was indicated in the latest business plan update? Then the second question is on the operational side. On slide number five, you are showing the data, and during your presentation, you made reference to the adjusted numbers. I noticed that there is a decrease in energy sales, also in the adjusted numbers, so could you elaborate on the reason why there is a decrease in energy sales through the year? And the third question is if you could update us on the dividend policies of the company, and if you could update us on the level of comfort that you have versus the tariff that you presented in the business plan for 2020. Many thanks.

Got it.

We're fully done.

BCC.

We'd say ablation and we'd say radical <unk>.

Let me say that we have with <unk> is.

To keep the company below two times net debt to.

So we added a rightful CCM, but let me remind you that these one seven is not considering the incident funds.

Lastly for the pension fund that may have been happening in Sao Paolo.

So we have a portfolio of at least level off.

Got it.

Of course, it will be.

Different when we see the gas hold the proceeds.

The same store pool.

But it will be completed.

But as you probably know us. So we commented during the presentation of these sort of based on the company's in November last year, we have successfully identified andas at the same of the use of proceeds.

Coming from the from the Phase <unk>.

Will it be monitoring in Brazil on a Boe basis.

Rafael de la Haza Casarrubio: Thank you, Javier. Maybe Rafa could explain a little bit about the level of... Thank you, Javier, for your questions. Regarding the first question, as you know, you are right. We have a level of 1.7 times higher compared to COVID-19.

Let me say payment of the Ghansham bondholder budget for the best of what we have seen.

Sao Paulo. So this is a situation that we had a comfort level, where they've got a situation along with the headline ratio.

On the.

Maybe to focus on 24, we are going to be a little bit.

And because of this particular situation of the completion of the <unk>.

But also as seen in Blue bar.

Rafael de la Haza Casarrubio: This is a level of evasion with which we are comfortable, as you know, the commitment, let me say, that we have with the rating agencies is to keep the company below two times the method to evade that. So we are in the right position. But let me remind you that this 1.7 is not considering the pension fund, the passive for the pension fund that we still have in Enel Sao Paulo. So we are comfortable with this level of method to evade that. Of course, this will be different when we receive cash or the proceeds when the sales of Enel Cremación Peru and Enel Distribuciones Peru are completed. But, as you probably know, as we commented during the presentation of the strategic plan of the companies in November last year, we have substantially identified 80% of the user profit. They are coming from the same, say, if they don't know, it's essentially liability management in Brazil and a potential, let me say, payment of the pension fund or the passage for the pension fund that we have in Sao Paulo. So this is the situation.

Keith I'd repeat that.

80% of Liberal followed closely.

Both sales.

Already identified.

Yes.

The lateral of Ppas in the law.

Level.

And of course here, we are not we are.

Coal subsidiary.

The numbers from a fit for <unk>.

I mean, we only remove the asset.

That we cannot debate so it's going to leave it there.

We look forward, we will not see the generation.

In Peru, we are adding.

The lateral.

It doesn't affect what we showed before because we've removed when we move that to remove the confidence thats related to if I relate it to be to the assets.

This case.

Medallion.

We are perfectly in line.

From what we mentioned in our strategy plan.

We have.

Almost 100% contracted.

And.

Yes.

It's not of course, it's normal small decreasing the in the last year of the plan.

Frank with you.

But.

Four.

Yes.

Frank do you want to fill in.

In the electric.

Rafael de la Haza Casarrubio: I repeat, we are comfortable with the current situation and with the current regime, and maybe 2024 is going to be a little bit different because of this particular situation of the completion of the processes in Peru, but that's it. I repeat that, most substantially, 80% of the total proceeds coming from both sides are already identified. Yeah, regarding the level of PPAs and the level of..., of operation. Of course, here, we are still considering the numbers from Peru. I mean, we only removed the asset that we do not operate. So, this is considerable. Of course, if you look forward, you will not see the generation in Peru.

And especially lineup with a half I told me regarding Peru.

Regarding the lateral off after that.

Vehicles serve I think another to wait for the conclusion.

<unk> of the operation by selling assets.

And in line with beats.

We maintained the decision last year to maintain the payout.

But of the company.

Of course after the completion of Yanacocha based efficiency plan and also the issue that.

We are revamping our financial costs.

We can readdress the situation.

Florida.

That next year.

Rafael de la Haza Casarrubio: Regarding the level of PPA, it does not affect what we showed before because we remove the assets; we remove the content that is related to the assets in this case. But let me tell you that we are perfectly in line with what we mentioned in our strategic plan. We have almost 100% full traction. That's a small amount. Of course, it's normal.

Do you think broadridge remains in depth feeds operation in Peru.

We will impact that.

Alternatively.

The dividend film fluctuated.

Five.

Sorry.

And with the flexibility banking to 80 to 85.

It is.

And the first thing.

Evidence regardless.

At a minimum payout ratio allowed.

Okay.

So thank you for getting multiple here.

Rafael de la Haza Casarrubio: It's more decreasing than in the last year of the plan, I mean, 2020. For here, we are reflecting on what we said in the plan. And especially in line with what Rafa told me regarding...

But I don't know if we talked about a growth platform.

LIFO.

We move today after they werent that we have received from the top.

Yes, we have another question one moment.

Sure.

Our next question comes from the line of Jordan Mcdonnell from Kalpa Securities assay.

Rafael de la Haza Casarrubio: Regarding the level of leverage, we are very conservative in order to wait for the conclusion and the cashing of the operation, the selling assets in Peru. In line with this, we maintain the decision of last year to maintain the payout to 30% of the company, right? Of course, after the completion of the efficiency plan and also the efficiency that we are presenting in terms of financial costs, we can readdress the situation for the next year. It is important to mention that this operation in Peru will impact dividends very positively from 2004 to 2018. S.C.

Hi, Hi, and good morning.

One question.

Regarding the sale of another two with some people on the approval of the Peruvian antitrust regulator.

We expect the deal to be closed.

There are another approval process that you need to complete before closing the deal.

Thanks.

Yes, I think the portfolio aggressively <unk> you ask at the hour.

Expectation is.

Terms of of course.

Closing the deal.

Listen to deal with the Kashi right. So your question related to where do we expected exactly right. If I didn't meet and started to confirm.

Rafael de la Haza Casarrubio: Sponsored ADR, Dividends. Regardless, we are having a minimum payout ratio allowed in Chile. So, thank you.

So when do you expect to be close there is do we close.

When do you stick to exit the country.

Rafael de la Haza Casarrubio: Thank you very much, Javier. But, I don't know if we have more questions from the live audience or we move to the ones that we have received in the chat. Yes, we have another question. One moment. Our next question comes from the line of Jordan Lozano from CALPA Securities SAB. Hi. Hi, and good morning.

Okay.

Remember that we have.

Please go ahead.

Yes.

Yeah.

We are performing June thing, there's no distribution assets in generation assets distribution asset we expect.

Beth.

We had noted advancement for us if it will be in direct is now.

Goodbye.

Wait the Florida.

Jordan Lozano: I have one question. Regarding the sale of Enel distribution in Peru and the approval of the Peruvian Antitrust Regulator, how much do you expect the deal to be closed? Is there another approval or process that you need to complete before closing the deal? Thanks.

Relative to and so we expect it by the end of March.

The decline in the.

Let's see.

At least maybe two weeks more or in the middle of a phase two I mean.

It is not so so far from from here.

For the generation.

Assets.

Aurelio Ricardo Bustilho de Oliveira: Thank you for your question. You asked our expectation in terms of closing the deal with the cashier, right? So your question is related to when we expect it exactly, right? If I didn't miss it, sorry to confirm.

Yeah.

We expect by the second quarter.

So total.

<unk>.

By the first semester.

We'll have.

This operation these deals close that we can achieve.

Within the company.

Thanks.

Thanks for the effort.

Can you give any more.

Aurelio Ricardo Bustilho de Oliveira: When do you expect the deal to be closed? When do you expect to leave the country? Okay, remember that we have... Yeah, we fly it. Now, we are doing two things, you know, the distribution assets and generation assets. Distribution assets, we expect... We had authorization from the Peruvian authorities. Now the buyer is waiting for the process, and so on. We expect this by the end of March 2024. It means maybe two weeks more or in the middle of April. I mean, it's not so far from now for the generation of acid. We expect to have this operation, this deal, closed with the cash in by the second quarter. Thanks. Thanks for the feedback. Thank you very much.

Let's move to with listeners that with others.

In the in the plot.

<unk>.

With Banco Santander.

As for Bob suggested.

So all in.

<unk>.

The situation.

What we see.

The noise around the <unk> segment in Brazil, and the question is the following what do you see as the main risk for their combined a lot of accounts, placing of discussing about advancing this is the first question from Banco Santander.

Second question is about.

Yeah.

In Colombia, El Nino phenomenon and address the needs of the following one less portfolio gives us a ratio.

Javier leading lead these lower ratings all thought changed what do you expect for the next quarters in Colombia.

Those are the following two questions one central mill. Thank you Francisco.

No.

Thank you.

For the question.

Well regarding the deposed vessel renew renewal either EBIT processes moving forward I think everybody knows very it's very clear.

Aurelio Ricardo Bustilho de Oliveira: Now let's move to the questions that we have received in the chat, starting with Franco Santander and Francisco Daz, two questions. The first paper is about the situation that we see, or the noise around the disco segment in Brazil. And the question is the following: What do you see as the main risk for the company? How are the concessions discussions advancing? This is the first question from Banco Santander. And the second question is about in Colombia, the El Nio phenomenon.

Jason.

We had.

These all the technical discussion regarding the renewable.

The renewal of concessions it's dean.

Technically address it then.

And also all of the analysis.

Done by the government and the company, we can move in the right direction.

Of course, we will.

We saw some.

Movement doing this week this week regarding the.

Presented in a low project.

Aurelio Ricardo Bustilho de Oliveira: And the question is the following one. Last quarter, you said your reservations haven't been impacted by this lower range. How has that changed? What do you expect for the next quarter in Colombia? Those are two questions from Santander. Thank you, Francisco.

With the radical change that frankly is aging.

<unk>.

<unk>.

The magic is.

Not that technically they are moving from technical geopolitical side.

It is not good but.

Expediency review with the basic economics of the checks and balances.

Aurelio Ricardo Bustilho de Oliveira: Thank you for the question. Regarding the renewal of concessions, the process is moving forward. As everybody knows, it's very clear that it's advancing. We have all the technical discussions regarding the renewal of concessions.

The proper addressing decade ago issues.

So we are very confident that.

This.

These nights at Gainesville, not niche.

For Us of course, we need to follow as company's Association Society communities and <unk>.

Aurelio Ricardo Bustilho de Oliveira: It's being very technically addressed. Also, all the analysis done by the government and the company is moving in the right direction. Of course, we saw some movement this week regarding the Projecto de Ley law project. With the logical change that Frankie is giving, it's a, The measure is not technical.

Also policymakers.

We need to to follow up this process.

And and not allow incentive fee that would skew everything that we do to doing all of the deals in Brazil.

The improvement.

And also what we need right now.

The answer to improve the quality to improve the quality of our our regulator analogy for expert and this kind of proposal. It's strictly speaking, it's not that we're moving to a degree.

Aurelio Ricardo Bustilho de Oliveira: They are moving from the technical to the political side. It is not good, but our experience in Brazil is that institutionality, the just embedded, and the proper addressing of technical issues prevail. So, we are very confident that these things will not lose force.

Moving to greatly greatly way, so we need to.

Correct.

We know that a stronger way in early February.

Our increasingly.

I am confident that the technical aspect of renewable will be respected.

Aurelio Ricardo Bustilho de Oliveira: Of course, we need to follow this process and not allow insanity that would kill everything that we have done during all these years in Brazil, all the improvements. And also, what we need right now is measures to improve the quality, to improve the quality of our regulations, our infrastructure. And this kind of proposal, it's frankly, it's not moving in this way, moving in a crazy way.

Regarding it extremely well.

Well.

We had a we announced it.

Trust in Argentina.

We had a we opened up growth.

To sell this asset EBIT checkpoint can match.

Technical <unk>.

No.

In the middle of.

And the election.

We beat them.

The head.

The results, but at.

At <unk>, we saw that.

Probably and considering the process of considering the new government announced and so on.

Aurelio Ricardo Bustilho de Oliveira: So, we need to correct this in a very strong way and, of course, a republican way. So that's our allocation. I am confident that the technical aspect of renewable energy will be respected.

And <unk> measures.

In order to have more.

Market orientation.

More.

I mean, we're supposed to believe it turns up.

Aurelio Ricardo Bustilho de Oliveira: Without any additional, you know as well we had a we announced the sale across Argentina. We had a we opened a process to sell this asset in the second semester, or yeah, second semester of last year. It was in the middle of an election. We didn't, of course, have the results, but at the end, we saw that, probably, in considering the process, considering the new government announcement, and so on, and First Measures in order to do more, and the responsibility in terms of the role of private companies to support the... Regulatory measures, but the first measures being, I mean, the first silence is being, Good timing, and we do not lose anything; we can see what will happen in terms of these measures, these regulatory measures that the new government is implementing and is applying in order to decide and to re-address this process again, but for now, we put on hold. We think it's a fair justification.

But it holds up.

Brian.

Combine these in.

To support the.

The sustainable growth of the country.

We decided to put on hold in this process and so we see the new measures and the new.

Laguna dynamically.

Magic King.

The flip side as being a.

With Tyler and we did not lose anything weight.

See what will happen in terms of.

This management will have to I'd imagine that you've got committed.

Sure.

Blind.

In order to decide.

We address this process again, but for now we put on hold.

Thank you.

It's a fair justification Europe, we're weighted Florida Atlanta conditions.

To add value to our active.

Okay.

Right.

A linear phenomenon in Colombia, although the second quarter.

So Bob.

Yeah.

They're not affected us.

In effect.

Every company net worth was.

With.

Okay.

Okay.

Both of these effects.

In our case affected.

Less debt than could be affected.

Aurelio Ricardo Bustilho de Oliveira: We are waiting for better conditions to add value to our efforts. Thank you. On Aurelio about the El Nio Phenomenon in Colombia, that was the second question. Yes, it means that the phenomenon affected us and affected every company that was... Let's uh... Exposed to the effect.

In terms of.

Margins considering the.

Position.

Our of our plan, it's our portfolio of generation, which proves that that.

We are in we have.

A very sound.

That's a form of generation in the country.

We expect that I mean.

Aurelio Ricardo Bustilho de Oliveira: What, in our case, affected the... It's less that could be affected in terms of... of Marques, considering the position of our plans, our post-Fallout generation, which proves that we are in the... we have a very sound... Platform of Generation in the... We expect that this, I mean... This is a This is a, It is a stationary situation, no?

Yes.

This.

<unk>.

That's discretionary.

Situation, though we expect to deal with.

This closed by the end of our firm.

<unk>.

Our pharma segment, let's.

Let's see.

And.

But I mean that we are ready to capture.

<unk> basically things of BPH.

And.

And also to <unk>.

Aurelio Ricardo Bustilho de Oliveira: We expect this will be disclosed by the end of our summer, let's say, you know, in the... But, I mean, we are ready to capture better conditions in terms of PPE. Ah, in, in the... and also to have good signs of rising for new properties, for new projects. But we expect that there is a projection that El Nio will end and then become La Nia.

It's a good sign us up writing, Florida for the appropriate based on new projects.

<unk>.

But we expect.

David.

Jackson that need where land and then we'll come to linear I mean.

This is <unk>.

The board of <unk>.

These two have brought basically to have very good pipeline of projects both boiler project.

And.

Also in conflict.

Very very good workforce in contact with the clients.

Aurelio Ricardo Bustilho de Oliveira: I mean, this is the importance of businesses to have productivity, to have a very good pipeline of projects, portfolio projects, and also to be in contact with, and a very good workforce in contact with, the clients, in order to close good PPAs, in order to adjust and move, being very proactive. We showed during the long run, during all these years in Corona, that we've been doing very good work in terms of contracting, in terms of hedging positions, but last but not least, the way that we built this portfolio of generation in the country, which is this strong position in terms of... Operating Energy Management in Salem. I think the best way to deal with this is to strategically train your capacity.

That should close good ppas, the Monday to adjust and move them being very proactive we chose the duty.

The long run doing all these things going on in that.

We'd be doing a very good.

Look in terms of contracting in terms of.

Hedge position.

But last but not least the way that we do use esports for new opportunities within the country, which gives us.

<unk>.

Strumpf with equally things up.

They do have energy.

Management.

So.

So.

I think.

The best way to deal with these two strategic planning.

You have capacity.

And two in Japan, and the capacity you need to have a very good back line.

We are.

He now great.

Aurelio Ricardo Bustilho de Oliveira: International, and to entrepreneur capacity, need to have a very good back line. We inaugurated a few weeks ago a solar project in Colombia, for example. One point of attention here is the issue of permitting. Permitting is something that, of course, we need a generation, and we have everything, we have PPAs, but we do not have the permits. And it delays entrance into the project. It is something that I... The country, not only the companies, but also society, should be concerned and should improve. , , So, considering the current season in Colombia, and as Aurelio mentioned before, for the first quarter, we will probably be neutral in terms of impact. So, no particular variations were obtained.

A few weeks ago.

Solar project in Colombia for example.

And.

One point of a patient here.

The meeting, but amazingly something that of course, we need the generation and whenever things we have today, but we do not have their need and it delays the interesting Brexit it is something that.

The country the country not only as a country to country and also the society should should be concerned in shaping group.

The conditions should be.

Something that.

And as an operator and part of the Colombian.

Plant expansion capacity, we should we can and this is the best way to deal with.

<unk> and <unk> and so on so we do not see any extraordinary situation considering the government of <unk> in Colombia.

Earlier, I said before for the first quarter, but slowly we need.

In terms of the impactful small bulk lump everybody into alternatives.

So.

Just to add.

Appointed <unk>.

The bulk of our loan book.

Of course <unk>.

But also all of the operation in Panama for example, right.

Aurelio Ricardo Bustilho de Oliveira: So just to add a point that we answered about Colombia, but of course, it affected our operation in Panama, for example, like we had a hydro plant in Panama. So if you analyze Panama out of this Colombian perimeter, of course, you see in 2023 a negative impact of 600. William, U.S. Lawyers, or something like that.

We had a hydro plant in Panama, So if you analyze.

Out of this for a little bit there either.

Of course, you'll see.

And take it into three.

I guess getting back up to 600.

Really in U S dollars or something like this.

$6 50.

<unk> sorry.

The.

<unk> million dollars $60 million.

But D C.

Aurelio Ricardo Bustilho de Oliveira: $60 million. But this is, of course; we are reviewing our position in order to compensate for the defect and not be so exposed there. But the whole system, the whole Colombian Panama, we are as architects, we compensate for the defect and do not have any major issues. Moneda, Rodrigo Mora, and the question is about the fines that we saw in Enel S.A. due to the recent blackouts in November. Please send us feedback about this and the potential actions of the company. Yeah, well, first of all, we see that these extreme events are more and more, they are a reality, series affecting the countryside, countries, not only Brazil, all the regions. And this is the reality, in a broader vision here. Company.

Of course, we are.

Yes.

Reviewing our position knowledge of complex ABB.

These effects.

And not to be so exposure, there, but the whole system the whole Colombia Panama.

Got it.

Okay.

Safety is effect and do not have any major issues.

Walnuts move tool Bonita.

It's grown legal Mora, we're serious about the filings but russo.

So volatile due to the recent blackouts.

Multiple for November.

So.

Feedback about bringing some of the potential access of the portfolio.

Yes.

Well first of all we see that that is extremely paints.

More and more.

They are a reality.

People see it is affecting the countryside.

Countries not only review all the region.

And it is a reality.

In a broader vision here.

Companies Society communities policymakers.

Aurelio Ricardo Bustilho de Oliveira: Society, communities, and policy makers. Also, with the support of the Academy, we should analyze this situation, and improved measures in terms of responsibility in transactions are important to have very clear. Who does what? Not only for that, in the extreme. Sponsored by the U.S. Department of the Interior.

Also that with the support of Academy receiver.

The situation in that.

And improved management in terms of who is supposed to be lifted in transactions is important you'll have very clear who does what.

Not only for the extreme example.

Before.

Because in order to have very clear because it is that we had at the group safety we.

We saw this helpful for dealing with that.

In Argentina, we are.

David the hot weather and it hasn't been a hearing in Cynthia in with that definitely in Chile.

The hot weather in the Bernie.

Events here.

It's a volatile yes at some followed of course, some colleagues are huge CD with.

Aurelio Ricardo Bustilho de Oliveira: Sponsored ADR Customers. We have, let me tell you that we have a regulation that does not reflect this reality. We should work together with the regulators, with the policymakers in order to adjust this. Hmm. I mean, equipment, remunerated assets. Death does not repeat.

Rebecca separated.

Good afternoon.

We have now.

We have a regulation that.

Uh huh.

Does not reflect reality.

Reality, we should work together with the regulator with policy make another two I just deep.

I mean.

We reiterate that the assets that did not repeat.

Aurelio Ricardo Bustilho de Oliveira: You can leave it for recognition in terms of remuneration, but it is, very much lower than the level that we can resist extreme weather, so we should adjust this. First of all, sometimes we analyze the loss of average in cases, but at the end of the day, we need to really perform the customer-centric approach, so we need to think about and analyze it if this average of failures and so on. We are not addressing the real question, the real issue, that affects the customer at the end of the day, and they are the most important agent in this equation.

To do that.

You can leave it for recognition it ends up remuneration Buddy.

Great and much lower than the level that we leased from them from the from the VIX to whether we should adjust the DS.

First of all.

Sometimes when you analyze the lots of half rates indicators, but at the end of the day.

We need to really perform at the customer Centricity approach.

<unk>.

We need to begin to analyze it exactly right Jeff.

For Adas and so on.

Receded.

We are not addressing the real the real questions in radio issue that affects the customers at the end of the day.

And they arent good.

Most important.

I mean agent EV to this equation.

Aurelio Ricardo Bustilho de Oliveira: From our side, we are. As we discussed, we invested. The level of investment in our company is high standard, high level because we need to invest in this. We will keep on investing. We saw our investment plan that we announced last year. So this is very important.

From our side we are.

As we discussed it.

We invested.

The lack of off invested investments.

Our company is.

High standard high level, because we need to invest.

This.

We'll keep believe absolutely you saw our investment plan that we announced.

Steve will begin.

Aurelio Ricardo Bustilho de Oliveira: This investment should be a certain focus on quality, need to be investments that improve the perception and the quality of the clients of our clients. That's what we are doing. We are improving our communication strategy, explaining very well what is happening, what is going on in our region, in our cities. That is affecting, I repeat, not only us, affecting every company, and not only the electric sector, other companies, other infrastructure companies, industries. They are being affected too, so we need to present and show very well and act for and be part of the solution, implementing action plans and so on. We are reinforcing also our management. Our management in the country, in the countries. So, we are reinforcing our side. Things like, I mean, to sift around and put in, to merge or sift around the grease in order to improve the situation.

It's very important these events and it should be a circuit that Trump was in quality.

It needs to be investments too.

The perception and the quality of the clients of our clients. That's what we are performing.

We are improving.

He proofing, our our also our.

Communication strategy, explaining very well what is happening what is going on in Alberta.

Region in our cities.

That is affecting I repeat that not only us affected every every every company and not only the electric sector either company.

The infrastructure company EBIT.

Yeah.

And in fact, it too so.

We need to do.

Vincent could show very willing to ask for it and to be part of the solution. You did maintain your action extremely excellent brand and so on.

We are a Florida season also our management.

Our management team in the country and the countries.

In Brazil.

So we are.

We foresee our our our site.

Since the.

Things like that.

<unk>.

Slipped around it accordingly.

Submerged, they ran the Greeks and others.

Aurelio Ricardo Bustilho de Oliveira: Yes, this is part of the solution, but it represents a higher cost for the customer. We need to be prudent on this. This could be a solution, but it can be a solution, but it takes time, it takes cost, and what we do right now. One important thing that we have in this kind of operation with the Atlantic Forest is to do tree trimming. And tree trimming can be done in a very intelligent and very smart way. There are analytics for this.

<unk>.

To improve the situation yes.

The divisions I think.

We represent the highest quality for the customer we need to have to be prudent on lease.

This could be a solution.

It also.

It can be a solution if I didn't take time.

Cost and what we do right now.

One a button feedback can reach that we have.

We did kind of operations.

We got Atlantic, Florida.

It's to do training.

Training.

We can do it in a very.

A vantage in diabetic monitoring analytics.

Aurelio Ricardo Bustilho de Oliveira: But the bureaucracy that should allow us to, in the municipality, we need to work together in order to take advantage of this, especially during this period. Because now we are entering the, let's say, beginning of winter, in the autumn. So this is the best time to do the correct retraining and also provide a push for the vegetation.

Lately for the.

Iraq with C suite allows us to and then we did see policy, we need to work together.

To take advantage of this.

Especially during the period because now we will enter in the let's say.

Beginning of the of the Windsor at all.

No.

Yeah.

Alton.

So this is the best time to do the correct <unk> and also provide.

Yes.

These are pushed further visitation and just mentioned.

Aurelio Ricardo Bustilho de Oliveira: I mean, I'm just mentioning this because we probably aren't addressing it enough. It's not dependent on us. It depends on the municipality.

Probably we are not addressing.

And thats its not depend on us and independent London municipality.

Aurelio Ricardo Bustilho de Oliveira: If we do not have an approval on time in terms of dealing with vegetation, it will be problematic because, as I told you, extreme events are not a special situation that we have during a period. They will be more and more. So, these climate issues. We only discussed renewable energy, which is correct, and I think we should put effort into this, and generation, and coal emissions. That's...

If we do not have.

In our group and approval timing things of.

Dealing with visitation.

It will be probably a arctic because as I thought we'd exit events.

Okay.

It's not.

And the special situation that had that we had to doing accretive deals.

More and more so.

These climate issues.

We only discuss the.

We need to go into the deep, which is correct and I think we should put the effort effort or live in generation and coal.

He says that debt.

Aurelio Ricardo Bustilho de Oliveira: Right, correct, and so on. But there is something that we are feeling on a daily basis, more frequently, that, in my opinion, we should address and act together to solve and minimize this impact. At the same time, we address the root issues of climate change. Thank you. Thank you, Aurelio. Very interesting questions.

Right correct and so on but there is a theme that we are feeling in a daily basis.

More.

Frequently.

In my opinion.

We should address and should get too.

So.

And to minimize this impact.

And in.

In the same time, we address that.

The Odyssey issues of climate change.

Thank you.

Earlier when you finish the question. Thank you Lillian let's move to Scotiabank for multiple funnel since questions about some of the brands summer when having already aggressive so less consolidated into new loans.

Operator: Now, let's move to Scotiabank. Tomás Gonzalez, six questions, but some of them have already been addressed, so let's concentrate on the new one. The first one is about the level of leverage at the Enel Americas consolidated level after the payment of the expensive Brazilian debt that we are considering for 2024 and after receiving the proceeds from the sale of the Peruvian assets. The second question is about NSU. We are going to consider it to remain in the country in the distribution business and if there is a change in terms of the strategy. And the third one is about COELFES, the situation in COELFES.

The first one with Lal D.

The level of limited.

The new ERP, and then America consolidated levels.

After the payment of the expensive Brasilia index that we of course were getting.

For 2024.

They're receiving the proceeds from the sale of <unk> assets.

The second growth game.

It's allowed.

So we are willing to consider getting to remain in the country.

The rest of the <unk> business.

If there is a chance and vessel for sloppy on the February one with allows poison the situation equal.

Rafael de la Haza Casarrubio: So, if you want, we can address the first one: how do you determine the level of fines in terms of debt? So, well, Tomás, this is a very relevant question. So, as you probably know, and as I indicated before to Javier from Mediobanca, the level of net debt to ODIPGA, at the Enel Americas level, is the payment of the most extensive Brazilian debt, and after receiving the proceeds from the sale of the Peruvian assets, it will be below one time. So we will be in a very comfortable situation. Once this transaction in Peru or those transactions in Peru are completed, and after the payment of the most expensive debt in Brazil, that will be close to 1.3 billion U.S. dollars.

So always you always everything we can.

The first one color my follow up a little effect size vessels.

So.

Obstacle business already.

But even though our gross loans, so I think for all we know.

In our flavor, particularly the reporter with Davita for maybe a long haul.

The level of.

Read that as elaborated CASM level after the payment of the most expensive philosophy on books.

After receiving the proceeds.

Sale of the Peruvian assets will be below one time, so we will be in a very comfortable situation.

Yes.

But on such an incredible Waldorf transaction, but it will be completed.

After the payment of the multiple specialty bedding industry that will be close to $1 3 billion and roll offs ultimately.

Rafael de la Haza Casarrubio: So, this will be the picture in terms of leverage, in terms of rates in Enel Americas' RRP after receiving the proceeds from the sales in Peru and after the payment of the most expensive debt in Brazil, which will be around 1.3 billion U.S. dollars. Yeah, regarding the concession renewal, no? I answered a little bit, but if you give me the opportunity, I can give you more color.

So we will be the featured in vessels eliminates in vessel voiceover portfolio.

In America, the beep after receiving the proceeds from the sale in Peru.

After the payment of amongst expenses in Brazil that will be around.

One 3 billion loss.

Regarding the concession renewal.

But at least it gives me the opportunity to give you more color.

Aurelio Ricardo Bustilho de Oliveira: The process, the technical process, the technical responsible for this is the Minister of Energy, right? This is the concession, the power to be with the discussion. All this technical discussion is moving in the right way that we are thinking. I don't know.

But for us the technical process technical disposal.

Possible for these is.

The minister of energy is the concession the power to do that.

A discussion all this technical discussion is moving in the right way that UFC.

There is no.

Aurelio Ricardo Bustilho de Oliveira: There is no, it will be renewed, the concession for 30 years without removing the fiscal. Benefits, and so on, respecting the contracts, requiring some social investment, is both a social investment that we need to do. So, it's perfectly in line. We have advanced a lot since the first proposal, so we are confident that this will prevail. What we had this week was, in the lower house, we had an approval of the urgency of a law project, a projected delay that, uh, Aurelio Oliveira, Rafael Casarrubio, Francisco Daz, Enel Americas S.A. sponsored ADR, distributed generation without planification. I mean, this is something that we believe will not prevail, and in Brazil, it's very, we are very comfortable with The respect for concerts will prevail, and it's been like this for all these years, so it will not be different this way, right? We have two remaining questions from Scotland.

It will be it would be renewed.

Sachin for 30 years.

Not removing the physical.

Benefits and so on we're expecting the confidence in Rick Brian consortium vacuum ending voltage social investment that we need to do.

So it's perfectly in line, let Vincent that large fleets the first proposal.

We are confident that these will be what we had this week this week with <unk>.

In the lower house, we have an approval of urgency.

Laughter, which it is a project delay.

Devin.

Change it.

A lot will change completely that did not get to that action.

Do see the time for 15 years.

Analyzing the situation of each.

Evaluation.

Obligations to sit there and the degrees.

Hopefully there isn't about.

About.

Distributed generation without modification.

No. This is something that we believe that will not prevail and in Brazil, It's very we're very.

Constant comfortable that the check the advantages the same attitude.

And then there'll be specced with contracts will prevail and it's been like this for all these year. This years, so it will not be different.

Aurelio Ricardo Bustilho de Oliveira: The first one is about the new regulatory changes that we expect. There is a variation in the strategy of executing Argentina substantially. And the final one is about the strategy to sell Corefe in the short term, if it is confirmed or not. Well, I think we know, as I said, we will wait and see, right? Yes, I think we all know the market.

Right.

Fair enough.

We have to be maybe what pro forma close along the first alongside all three vessels.

Okay.

The level of incentives that we expect will be very sorry about Asia, maybe slightly off of keeping them out of Indiana. So thoughtfully on the final one if all reflecting 8% growth in the software is compatible.

Well I think as I told to wait and see right.

Aurelio Ricardo Bustilho de Oliveira: I think we have good expectations of the improvements in general, the macro improvements. And for now, it's on hold. This process is on hold. Let's see how it works. And not only what is announced, but what is being prevented. No, this is very important.

I think that we all the market I think we have good expectation.

The improvement.

Generally the macro improvements.

For now it's.

Oh hold to this process example, let's.

Let's see how it moves up and not only what is the analysis of what it means it means that northern is any company.

In terms of.

Aurelio Ricardo Bustilho de Oliveira: In terms of COELSI, yes, it's also holding, waiting for these discussions and this alignment in terms of concessions. It's very difficult to... in the short term, put this process as a priority right now with all these discussions of concession renewals because it's touching the heart of the company. So we need to wait for the conclusion of this. Having said this, our estimation is... Probably by the end of this year, we'll reanalyze the situation and see what actions we take. We are not in a hurry, I mean, we are not in a... We want to analyze the correct time to make this decision considering that lots of important things, regulatory issues, are moving forward to determine the correct value for those assets and again analyze whether it makes sense or not. Thank you for your question. Thank you for your question, Tomás. Thank you, Aurelio. We move to Gustavo Faria, who remains in Brazil and discusses a lot about our strategy in the future for the assets in Sao Paulo and in Rio. Thank you, Gustavo.

Yes.

It's also holding.

<unk> for this.

Discussions and its alignment in terms of concessions.

Concessions.

It's very difficult to.

The shotgun too.

To to put let's say.

Brooklyn is our priority right now with all of these discussions.

Concession renewals because it does seem to.

Part of the of the company. So we need to wait for the conclusion of these haven't said visa our estimation.

Uh huh.

Probably by the end of this year.

We analyze the situation and see.

Excellent.

We are not in a in a.

In a hurry I mean, we're not doing that.

We want to do to analyze the correct guidance.

And considering that.

Lots of important things.

But the regulatory issues.

Our.

Moving forward to get their mind.

The correct value for those assets and again analyze it it makes sense or not.

Yeah.

Thank you for your question.

We work with multiple colonial.

Let's move to follow a four year remaining velocity.

That's the amount about our philosophy in the future for the asset in Sao Paulo and Rio.

Thank you think of the cycle.

For now the strategy is to maintain the exits TUI group aquatic up those assets.

Aurelio Ricardo Bustilho de Oliveira: For now, the strategy is to maintain the assets, to improve the quality of those assets, improve the quality of the clients, the quality of supply, and invest in the grid. In the case of Rio, we are focusing on special issues related to losses that we've been discussing with the regulations. Nothing different. Somehow, we are confident that we are in the numbers.

The product I mean, we do get quite a few of the clients they are quite a bit of supply.

Passive agreed.

<unk> is a free and we are focusing on special.

Issue related to losses that we've been discussing with the regulation I mean nothing different.

So probably we are.

We are confidence.

Aurelio Ricardo Bustilho de Oliveira: Until now, it's showing that we've been doing a very good turnaround with the operations that they were expected to change. Okay, thank you, Cristobal Amiri. And the question is about the Brazilian distribution business, and the question is the following: Why did distribution energy sales in Brazil increase quarter over quarter? And why did the average selling price decrease?

Yeah.

And the number.

So now we're showing that we are.

We'd be doing a very good turnaround of <unk>.

Okay. So does that mean that there's no.

There's no expectations to change.

And the people.

Okay.

Thank you.

We're still automotive.

Hum.

Available for sale with the Nissan business on the West end.

Following what we did see some of that in the sales in Brazil.

The increase over the fourth quarter over the fourth quarter.

While lower rates solid bulk simply.

Aurelio Ricardo Bustilho de Oliveira: Do you expect this trend to continue? Sponsored by ADR. And then we've understood collectively that this is the solution, right? Yes.

Do you expect.

To continue.

And then with on the physical access to BELBUCA submission.

Aurelio Ricardo Bustilho de Oliveira: The second one is about the pricing or the pricing dynamics for the future in Brazil. And the first one is about the energy sales that have increased among elderly workers. Yes, well, Brazil depends a lot on, when you compare Brazil, I mean, if you see... Sao Paulo and Rio. It depends a lot on temperature.

Okay.

The fund with over one for wallboard pricing or more buses dynamics for those three.

In Buffalo.

On the first one is about the energy flow photos.

Great.

Okay.

Yes.

Yes, but it depends a lot.

<unk>.

Like when you compare the deal I mean, you can see.

Following Liam.

It depends a lot on temperature.

Aurelio Ricardo Bustilho de Oliveira: Right. We have hot weather, and will have higher humidity. The therapy is the right step; there's no difference between steps, because if I consider the... Because it's compared to the last quarter of 2023 and the last quarter of 2020. The tariff changes because we performed a tariff reset in July in the case of Sao Paulo and in March in terms of Rio. So this part of the quarter..., you see that there is a change in the tariff reset, and it's a normal change related to the asset cases that were revised. The tax increases a little bit, around 5% in one company, around. In terms of quantity, for polyurea, I repeat, usually it's a variation or an impact of the summer. I mean, if it is hottest in midsummer compared to other times, it will be higher consumption, right?

Right, if you have a hot weather.

We will have a higher consumption. The therapy is the word sector, there's no differential factor.

Because if I consider that.

The buckets compare the last quarter of 23.

We left flat thereof to integrate the.

Right.

Sorry, David.

Change it because we perform with a dedicated executive in July that engage our players.

Some volatile.

And in March in terms of <unk> right. So the park to offline.

A flatter.

You see that.

There is a change in a better place that they need.

A notable change related to the asset base infected with revised.

Right.

The tax increase that a little bit I mean around 5%.

In one compound media around that.

Fourth or fifth out of golf.

But he said normal normal.

Greece, it turns up quite a bit.

Yeah.

Sure.

Polyethylene I repeat usage.

<unk>.

Variation.

And the impact of December.

Definitely I mean that.

If it is harvesting the December.

That should be either will be higher the consumption right.

Aurelio Ricardo Bustilho de Oliveira: And this happened in 2023, so it's a normal issue, it's more related to our activity and operations. C.R.I. is a little bit different.

And this.

It's happened in India.

So.

But it's a normal it's a BARDA related.

So our EBIT in operation right.

Yeah.

These different.

Aurelio Ricardo Bustilho de Oliveira: C.R.I. depends on hydrology. If it doesn't rain, the industry, and the consumption of water; they need to use more energy in order to have water during this dry period.

<unk> zone.

Hydrology.

It doesn't.

Right.

The day, we see the consumption of locked there they need to.

To use more energy in order to to have water duty.

Aurelio Ricardo Bustilho de Oliveira: It is exactly what we saw in the fourth quarter of 2023, although it is not exactly the most that requires more activity in terms of water. So, it's difficult to analyze Brazil as a complete whole, as a whole company. We are totally available, if you want to, with our investor relations director, to analyze these movements, company by company, stage by stage. I think it's interesting because when we analyze the country, we are mixing up lots of situations.

Dry period.

It's exactly what we saw it in the <unk>.

In the fourth quarter upgrade the Trinity three despite it is not exactly.

This.

The months after acquiring it tomorrow.

I mean, mark more activity based off what they are.

Lockwood or.

My fault.

Our water dry piece of season.

So it.

It looks like he.

He was a complete as a whole.

Finally, we are totally available if you want to with our Investor relations added to analyze these movements.

And if I can find it.

Basically I think it briefly.

When we analyze the country, we are mixing lots of situations and last but not least the remember that we indicated the 80 to 83.

Aurelio Ricardo Bustilho de Oliveira: Last but not least, remember that 2020... Free, right? We have that, if we said so, with all our companies in Brazil, right? So, this is very important, the name says it, it's a reset. So, you start with a new level of tariffs due to RAS, due to pricing, inflation, but mostly due to assets, remunerated assets, so we need to analyze it by company by company.

Three we.

We had tariff reset.

With all our companies in Brazil, right. So.

This is a very important.

The name of <unk>.

So if you were starting with a new with ample status do too right.

Right.

Deflation, but mostly due to asset eliminated as invasive adjustments, so we need to finalize the bi.

Rafael de la Haza Casarrubio: Okay, thank you. Before I thank you, Aurelio, we didn't see any more questions on the screen, so let's conclude this conference call. We are very satisfied with the success of the ADR results in Enel Americas, in line with guidance announced one year and a half ago. Perfectly in line.

By example.

Okay. Thank you.

Also we will see more growth on the screen. So lets conclude this conference call.

We are very satisfied with.

<unk> seen likely provided us an answer.

Hello.

Rafael de la Haza Casarrubio: We will now let me say this with our business as usual. So, we conclude the conference call, as I said, but let me remind you before finalizing that the investor relations team, as usual, is available for any further detail or any doubt that you may have in the coming days. I wish you, we wish you all a very nice weekend. So, thank you, Javier, and see you next time. Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect. Thanks for watching!

But if they are in line.

Now let.

Let me say this.

Business.

Is it as well.

So we.

We conclude the conference call of <unk>, but let me remind you before we finalize it but that's what it makes sense Steve.

We recently saw that level for any further.

Defib side.

Any thoughts that you may have index coming base.

I'll leave you with you all very nice weekend. So thank you.

So unit volume.

This concludes today's conference call. Thank you for participating you may now disconnect.

Okay.

[music].

Yes.

Okay.

Yes.

Okay.