Q4 2024 Enel Chile SA Earnings Call
Carmen: My name is Carmen and I'll be your operator for today. At this time all participants are in a listen-only mode. After the speaker's presentation there will be a question and answer session. To participate you will need to press star 1 1 on your telephone. You will then hear a message advising your hand is raised. To withdraw your question, simply press star 118.
My name is Carmen and I'll be your operator for today.
At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to participate you won't need to press star one one on your telephone you will then hear a message advising your hand this race to.
To withdraw your question simply press Star one again.
Speaker: Please be advised that today's conference is being recorded. During this conference call, we may make statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such 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 in the forward-looking statements as a result of various factors. These factors are described in Enel Chile's press release and reporting its full year and fourth quarter 2024 results. The presentation accompanying this conference call and Enel Chile's annual report on Form 20-F included under risk factors.
I used to be advised that today's conference is being recorded during this conference call will may make statements that constitute forward looking statements within the meaning of the private Securities litigation.
Litigation Reform Act of 1995, 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 in the forward looking statements as a result of various factors.
These factors are described in Enel, Chile's press release, and reporting as full year and fourth quarter 2024 results depressants.
The presentation accompanying this conference call and Enel Chile's annual report on form 20-F included under risk factors you may access our full year and fourth quarter 2024 results press release and presentation on our website at Www Dot and.
Speaker: You may access our full year and fourth quarter 2024 results, press release and presentation on our website at www.enel.cl and our 20-F on the SEC's website www.sec.gov. Readers are cautioned not to place undue reliance on those forward-looking statements which speak only as of their dates. Enel Chile undertakes no obligation to update these forward-looking statements or to disclose any development as a result of which these forward-looking statements become inaccurate except as required by law.
<unk> Dot CL and our 20-F on the S. E. T. S website www Dot S E C dot gods.
Readers are cautioned not to place undue reliance on those forward looking statements, which speak only as of their dates and they'll Chile undertakes no obligation to update these forward looking statements or to disclose any development as a result of which these forward looking statements become inaccurate except as required.
Isabela Klemes: I would now like to turn the presentation over to Ms. Isabela Klemes, Head of Investor Relations of Enel Chile. Please proceed.
By law.
Isabela <unk>: I would now like to turn the presentation over to MS. Isabela <unk> head of Investor Relations of Enel, Chile. Please proceed.
Isabela Klemes: Good morning and welcome to Enel Chile's 2024 fourth quarter and full year results presentation. Thanks to you all for joining us today. My name is Isabela Klemes. I am the head of the investor relations team. Joining me today are our CEO, Giuseppe Turchiarelli, and our CFO, Simone Conticelli. Our presentation and related financial information are available on our website, www.enel.cl. In the investor section and on our app, Investors. In addition, a replay of the call will be soon available. At the end of this presentation, there will be an opportunity to ask questions via phone or webcast chat through the link, ask a question.
Okay.
Speaker Change: When do you go.
Speaker Change: Good morning, and welcome to Enel, Chile, 2024th quarter and full year results presentation. Thank you.
Isabella Claims: You all for joining US today My name is Isabella claims I am the head of Investor Relations team. Joining me today are CEO just that.
Speaker Change: And I was just checking.
Speaker Change: Our presentation and related financial information are available on our website.
Speaker Change: And now in.
Speaker Change: In the investors section and on our App investors. In addition, a replay of this call will be available.
Speaker Change: At the end of this presentation, there will be an opportunity to ask questions via phone or Red Chris Schott.
Speaker Change: Oh question Neil.
Speaker: Media participants are connected only in listening mode.
Speaker Change: Neither party.
Speaker Change: Connected only in Houston in malls, she was that it.
Isabela Klemes: Giuseppe will start the presentation by covering key highlights of the period. He will then discuss our portfolio management actions, provide updates on regulatory context, and share our guidance activities. Following that, Simone will offer an overview of our business economics and financial performance. Thank you for our attention.
Speaker Change: We'll start the presentation by Cobra and key highlights of the ear. He will then discuss our portfolio management actions provide an update on regulatory context and share our guidance achievement.
Speaker Change: Following that Emmanuel will walk for an overview of our business economics and financial performance.
Giuseppe Turchiarelli: Giuseppe will now take over the call. Thank you, Isabela. Good morning and thanks for joining us. Let's start the presentation with our main highlights of the period on slide 2. Our hydro portfolio performed exceptionally well, with hydrogenation increasing by 12% compared to last year. This performance was a result of a higher reservoir level at the beginning of the year, influenced by the El Niño phenomenon observed in 2023 and a solid rainy season during 2024. Also on Hydro, we are pleased to announce that the Los Condores Hydro Power Project has finally been connected to this. plant is already in full capacity mode generation.
Speaker Change: So for US Asia, just that they will now take over.
Speaker Change: Thank you Isabella good morning, and thanks for joining us.
Let's start the presentation with our main highlights of the period on slide two.
Speaker Change: Our hydro portfolio performed exceptionally well with.
Speaker Change: With hydro generation, increasing by 12% compared to last year.
Speaker Change: This performance was a result of a higher rates at water level at the beginning of the year.
Speaker Change: Nino phenomenon upset in 2023, and a solid rainy season during 'twenty 'twenty four.
Speaker Change: Also on hydro we are pleased to announce that the lost contracts Idaho power.
Speaker Change: Our project.
Speaker Change: Has finally been connected to the system.
Speaker Change: He is already in full capacity mode generation.
Giuseppe Turchiarelli: All the tests were concluded and we are now expecting to receive the COD in the next week.
Speaker Change: All the tests were concluded and we are now expecting to receive the field in the next weeks.
Giuseppe Turchiarelli: As we reviewed last quarter, the first major climatic event on August severely impacted our distribution concession area. In this presentation, I would like to provide you with some updates on the additional measures we have been taking to prepare for the future climate events. while we do not see changes in distribution regulation. Regarding the August event, I would like to emphasize that Enel Distribution was the first distribution company to request and agree on a voluntary compensation plan for its clients impacted by the fourth major event in August. Also, I will give you more color on how we are in terms of VAD 2024-2028 process and the PEC situation, considering the publication of PMP.
Speaker Change: It's we reviewed last quarter. The first measure climatic event on August severally impacted our distribution consultation out here.
Speaker Change: This presentation I would like to provide you with some updates on the additional measure we have been taken to prepare for the future climate events.
Speaker Change: We do not see changes in distribution regulations.
Speaker Change: Regarding the August event, I would like to emphasize that any distribution was the fast distribution company to request and agree on a voluntary compensation plan for its clients impacted by the Port Miami, where I mean, you know it goes.
Speaker Change: Oh, So I will give you more color on how we are in time so be it.
Speaker Change: 'twenty 'twenty four 'twenty three to cross it and the PEC situation, considering the publication of <unk> P. M P.
Giuseppe Turchiarelli: Admitted the regulated consumer tariff during January this year.
Speaker Change: The regulated consumer topic during January this year.
Giuseppe Turchiarelli: Regarding the business profitability, I'd like to remind you that we changed the company's functional currency during the fourth quarter. This led to a no-cash impact of $657 million at the EBDA level. As we have emphasized before, this will not affect the dividend distribution for our shareholders. Throughout the presentation, we will discuss adjusted EBITDA and net income, excluding discount. Taking the adjustment, I am pleased to announce that our adjusted EBDA and net income results were fully in line with the 2024 guidance, reaffirming the confidence in our strategic plan. In terms of FFO, we see an important improvement versus last year coming mainly from our EVDA and the PEG factoring executed in the fourth quarter.
Speaker Change: Regarding the business profitability.
Speaker Change: To remind you that we changed the company's functional.
Speaker Change: Currency during the fourth quarter.
Speaker Change: This led to a noncash impact of $657 million at the EBITDA level.
Speaker Change: Okay.
Speaker Change: We have emphasized before this will not affect the dividend distribution for our shareholders.
Speaker Change: Throughout the presentation, we will discuss adjusted EBITDA and net income excluding Dizzy.
Speaker Change: Taking the adjustment I'm pleased to announce that our adjusted EBITDA and net income results were fully in line with the 'twenty 'twenty four guidance, we are affirming the confidence.
Speaker Change: Is your plan.
Speaker Change: In time, so we see an important improvement versus last year.
Speaker Change: Coming mainly from our EBITDA and epic factoring executed in the fourth quarter.
Giuseppe Turchiarelli: I will provide more details on this later.
Speaker Change: I'll provide more detail on these later now let's review some update regarding our agenda niche them sourcing beginning with the hydro and not throw you got situations.
Giuseppe Turchiarelli: Now, let's review some updates regarding our generation sourcing, beginning with the hydro and natural gas situation as outlined on slide 3. The positive hydrological conditions during 2023, which led to a greater water availability from the beginning of 2024, coupled with the higher-than-expected rainfall record in 2024, allowed us to increase our hydro production. This resulted in a 12% increase compared to the 2023 period, equivalent to 1.5 terawatt-hour of additional hydro generation. The hydrological situation in our reservoir continues to be comfortable year-to-date compared to the last year's figure. despite experiencing a La Niña phenomenon. However, for the year, we have chosen to adopt a conservative strategy and set our hydro condition target for our hydro fleet close to the average of the last 10 years, equivalent to 10.7 TWh.
Speaker Change: On slide three.
Speaker Change: The positive hydrological conditions during 2023, which led to a greater water availability from the beginning of 2024, coupled with the higher than expected rainfall recorded in 2024.
Speaker Change: Allowed us to increase our hydro production.
Speaker Change: This resulted in a 12% increase compared to the 'twenty to 'twenty three period equivalent to 1.5, instead of a tower of additional hydro generation.
Speaker Change: Yeah, there are logical situation, even though I've got rid of that water continues to be comfortable yet to date compared to the last few years.
Speaker Change: Despite experiencing and anemia.
Speaker Change:
Speaker Change: Oh, Hey, there.
Speaker Change: For the year.
Speaker Change: I've chosen to adopt a conservative strategy and set our hydro condition target, but our idle fleet close.
Speaker Change: So the average of the last 10 years, it keyboarding to pinpoint seven Terawatts hour.
Giuseppe Turchiarelli: To strengthen and diversify our portfolio, we have strategically secured contracts with a variety of Argentinian natural gas providers for 2025. Unlike previous years, this agreement covered the entire year, not just the winter and summer period. This approach enhances our visibility of both crisis and context. providing us with a more stable and predictable supply for the year. Furthermore, while Argentinean gas remains highly competitive, our strategy continues to be anchored to our long-term and firm LNG contract with Shell. This dual sourcing strategy ensures the security of our required volumes and offers the flexibility to explore trading opportunities in both internal and external markets.
Speaker Change: To strengthen and diversify our portfolio.
Speaker Change: We have strategically secured a contract with a body of Argentina, no dry gas provider for 2020 five.
Speaker Change: Unlike previous year. These agreements cover the entire year, not just the winter and summer period.
Speaker Change: These approach and answer Rob is the ability of both prices and quantities, providing us with a more stable and predictable supply for the year.
Speaker Change: Furthermore.
Speaker Change: <unk> Argentinian gas to remain highly competitive.
Speaker Change: Or does it continue to be an inquiry for our long term.
Speaker Change: LNG contract with shell.
Speaker Change: This dual sourcing strategy and ensure the security of our required volumes and offer the flexibility to explore trading opportunity in both internal and external market.
Giuseppe Turchiarelli: This proactive measure position adds strongly to navigate market and climate fluctuation and capitalize on opportunity.
Speaker Change: This proactive measure position.
Speaker Change: Strongly to navigate marketing climates location and capitalize on opportunities.
Giuseppe Turchiarelli: Let's continue discussing our generation sourcing with a focus on the development of our portfolio on generation assets now on slide 5.
Speaker Change: Let's continue discussing our generation sourcing with a focus on the development of our portfolio on duration now on slide five.
Giuseppe Turchiarelli: I would like to start emphasizing that in 2024, we successfully completed the expansion of our renewable portfolio across the country. Increasing our exposure to battery energy storage. This milestone represents a crucial step in our strategy to diversify and make our portfolio more flexible. Our ongoing efforts to advance battery regulation for ancillary services are vital for boosting market competitiveness and reducing system costs. In 2024, we received authorization from the National Electricity Coordinator to begin commercial operation of a total of 693 megawatts. These include 385 MW of solar, 202 MW of battery storage, and 106 MW of wheel capacity.
Speaker Change: Yeah.
Speaker Change: I would like to start emphasizing that in 'twenty 'twenty four we successfully completed the expansion of our renewable portfolio across the country.
Speaker Change: Increasing our exposure to battery energy storage.
Speaker Change: This milestone represents a crucial step in our strategy to diversify and make our portfolio more flexible.
Speaker Change: Our ongoing efforts towards the bonds, but the deregulation, but until it's there it is vital for boosting market competitiveness and reducing system cost.
Speaker Change: In 2024 received authorization.
Speaker Change: From dimension on basically coordinator to begin commercial operation of a total of 600.
Speaker Change: 93 megawatt.
Speaker Change: These include 385 megawatt solar farm during two megawatt battery storage and 106 megawatts always goodbye.
Giuseppe Turchiarelli: Additionally, we successfully connected 404 MW of renewable capacity in 2024. bringing our total capacity to 8.9 gigawatts. Today, almost 80% of our total capacity is renewable and bank.
Speaker Change: Additionally.
Speaker Change: We successfully connected 400 megawatt of renewable capacity in 2024.
Speaker Change: Bringing our total capacity to eight or nine gigawatt.
Speaker Change: Good day all.
Speaker Change: 80% of our total capacity is renewable and bags.
Giuseppe Turchiarelli: As anticipated, in the fourth quarter, we connected Los Condores hydropower plant into the ground. The plant is already operating in a testing mode until we receive approval for the combination to commence. Commence commercial operation. The good news is that we are generating at a high level. To date, we have received approval for the 11 testing procedures requested by the system coordinator. and have sent a letter formally requesting approval for commission operation last week. Therefore, it is reasonable to anticipate authorization by March this year.
Speaker Change: Yeah.
Speaker Change: As anticipated in the fourth quarter, we connected the lost contract Idaho power playing into that.
Speaker Change: The plane is already operating in a testing mode until we receive approval for the combination to commands.
Speaker Change: Commenced commercial operation and the good news is that we are generating a high level.
Speaker Change: To date, we have a receiver prove up.
Speaker Change: For the 11 testing procedure requested by the existing coordinator.
Speaker Change: And have sent a letter formally requesting approval for commercial operation.
Speaker Change: Therefore, it is reasonable to anticipate October inflation by March this year.
Giuseppe Turchiarelli: Now, on the next slide, we will review the performance of our Generation KPI. Net electricity generation total 24.6 TWh as of December 2024, exceeding by 2% the production during 2023. mainly due to higher hydro and renewable generation resulting from the improved hydrology this year and the operation of new projects.
Speaker Change: Now on the next slide we will review the bed for months about what generation kit.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Net electricity generation totaled 24, or six Terawatt hour as of December 2024, exceeding by 2% production during 2023.
Speaker Change: Mainly due to higher either a renewable generation, resulting from the improved eight roller GTC error in the operation of a new project.
Giuseppe Turchiarelli: During the fourth quarter of 2024, next generation decreased 8% to 6.1 TWh mainly due to lower thermal dispatch during the fourth quarter of 2024, lower other renewable production and slightly better hydrology recorded during 2023. Our energy sales total 33.4 terawatts hour during 2024. 8% higher than the level recorded in the previous year, resulting from higher fees to both regulated customers and free clients. Our commitments with our clients were fulfilled with a higher portion of our renewable generation, coupled with an efficient portfolio of purchases to third parties. Regarding the latter, in terms of our balance during 2024, we increased our purchases from third parties by 2.3 TWh as part of our continuing efforts to diversify and optimize our energy sources.
Speaker Change: Okay.
Speaker Change: During the fourth quarter of 2024 next generation decreased 8% to $6. One dollar a mainly due to lower thermal dispatch during the fourth quarter 2024.
Speaker Change: Lower other renewable production and slightly better.
Speaker Change: Recording during 2023.
Speaker Change: I would just say is total 33 points before that about dollar during 2024.
8% yeah.
Speaker Change: And then the labor recorded in the previous year, resulting from higher sales to both regulated.
Speaker Change: We got try it.
Our commitments with our clients that were fulfilled with a higher portion of our renewable generation, coupled with an efficient portfolio of parts to this.
Speaker Change: Took that basket.
Speaker Change: But he got it in the ladder in terms of our balance during 2024, we increased our part disease from third parties by $2 three sorry about that.
Speaker Change: As part of our continuing efforts to diversify and optimize our energy sourcing.
Giuseppe Turchiarelli: during the whole quarter 2024. Physical energy sales grew by 6% to 8.1 TWh mainly due to higher sales to regulated gas.
Speaker Change: During the fourth quarter of 2024.
Speaker Change: Physical.
Speaker Change: Energy sales grew by six to.
Speaker Change: 281, Terawatt hour, mainly due to higher sales to regulated customers.
Giuseppe Turchiarelli: Now, I would like to take a few minutes to talk about the extraordinary weather events of last August. I would like to provide updates on the extreme weather events that impacted our concession area in August 2024 and discuss our preparation for future events. Just to recall, on August 1st and 2nd, an extraordinary and unpredictable storm with winds of up to 124 km per hour impacted the metropolitan region, causing extensive damage. severely affected our electricity distribution network, resulting in widespread power outages and making system restoration extremely challenging.
Speaker Change: Yeah.
Speaker Change: Now I would like to take a few minutes to talk about the extraordinary weather events.
Speaker Change: Okay.
Speaker Change: I would like to provide updates on the extreme weather events that impacted our concession area in August 2024, and discuss our preparation for future events.
Speaker Change: Just to recall on August 1st and second an extraordinary error unpredictable dorm with wings.
Speaker Change: Up to 124 no matter.
Speaker Change: But our.
Speaker Change: Impacted the metropolitan region caused extensive damage.
Speaker Change: This is Tom.
Speaker Change: Separately affected our electricity distribution network for it.
Speaker Change: In widespread power outages, and making system restoration extremely challenging.
Giuseppe Turchiarelli: We request the local regulator to declare the August 2024 storm as the fourth major event, but it was rejected. In response, we filed a reclamation remedy with the Santiago Court of Appeal to overturn the Superintendencia de Electricidad y Combustibles decision. On September 30, 2024, the Santiago Court of Appeals accepted our reclamation remedy, requiring the SEC to provide substantial information about our claim.
Speaker Change: We request the local regulator to declare the August 2021st thought is therefore, my short van Bot.
Speaker Change: It was the reject.
Speaker Change: In response, we filed our reclamation remedies with the San Diego Court of appeal to overturn the superintendent.
Speaker Change: Congress <unk> decision.
Speaker Change: On September 32020 for the San Diego Court of appeal.
Speaker Change: Our reclamation grey media.
Speaker Change: Requiring the SEC to provide substantial information about our claim.
Giuseppe Turchiarelli: As anticipated, on November 2026 2024.
Speaker Change: As anticipated on November 26.
Giuseppe Turchiarelli: No, the sacred. Report recommended rejecting our claim. We are now awaiting the court's final resolution, which remains pending, and we stand confident in our position. Still related to the event in August, last January the SEC imposed a $20 million fine on NLDC businesses. This fine is the largest ever imposed on an electricity provider in Chile for service disruption, among others, issued, identified by the Enel Distribucion booked 100% in December 2024 of the fine, but file and administration Remedy, reiterating that August climate event was an unforeseen and resistible force majeure under Chile's current legal and regulatory framework.
Speaker Change: 2024.
Speaker Change: The fact correct.
Speaker Change: A report.
Speaker Change: Landed rejecting our claim.
Speaker Change: We are now.
Awaiting the court's final resolution, which remain pending and we feel confident in our.
Speaker Change: Position.
Speaker Change: Deal related to demand in August last January the SEC impose a $20 million fine and they'll distinguish.
This fine is the largest ever imposed on electricity provider in Chile first state.
Speaker Change: Sure among other issues identified by the SEC.
Speaker Change: And if it will sell them booked 100% in December 2024 of the fine, but five and administration.
Speaker Change: Remedy.
Speaker Change: Great. Good evening day August climate event.
Speaker Change: Im foreseen and resistible false mature and that Chile current legal and regulatory framework.
Giuseppe Turchiarelli: We are awaiting the SEC formal response to our appeal. On February 4th, 2025, Enel Distribucion, as part of a voluntary collective procedure, became the first distribution company in Chile to reach a voluntary agreement with the National Consumer Services. Sernac to establish an extraordinary compensation mechanism for residential customers affected by the prolonged power outages. The agreement includes A total voluntary agreement of approximately $80 million. Benefiting around 800,000 Catholics.
Speaker Change: We are waiting the second part of my response to our appeal.
Speaker Change: On February four 2025, and then it will show as part of a voluntary collective procedure.
Speaker Change: Became the first distribution company in Chile to reach a voluntary agreement with the national consumer services.
Speaker Change: Submarket to establish an extraordinary compensation, making port.
Speaker Change: Redemption costs that affected by the prolonged our outage anymore.
The agreement.
Speaker Change: In groups.
Speaker Change: It talks about the long term agreement of approximately $80 million.
Speaker Change: Benny fading at around 800000 customers.
Giuseppe Turchiarelli: This amount is divided in... First, compensation of interruption. Second, compensation for claims, and third... Compensation for the loss of food, medicine, and similar acts.
Speaker Change: This amount is divided into.
Speaker Change: But compensation of interruption.
Speaker Change: [noise] second compensation for claims and.
Speaker Change: Compensation for the loss of food medicine, and similar items.
Giuseppe Turchiarelli: This agreement is separated from the legal compensation that are pending the resolution of the fourth measure.
Speaker Change: These agreements.
Speaker Change: <unk> separated.
Speaker Change: From the legal compensation there.
Speaker Change: Our pending the resolution that the cost of the measure.
Giuseppe Turchiarelli: and aggravated abnormal state of reclamation remedies. The impact of this Voluntary Agreement Programme was also recorded in our 2024 financial results, as Simone will show you later. Despite several regulatory and legal discussions surrounding the August events, We have introduced many initiatives to improve the response of all our parties involved in the future climate events. We believe that climate change will make such events always more prevalent. Therefore, it is essential for all parties to act promptly and effectively. to ensure the proper functioning of the network.
Speaker Change: And I agree with you aggregated abnormal state reclamation Raymond.
Speaker Change: The impact of this voluntary agreement program was also recorded in our trailing 24 financial results as Cmos, which for you later.
Speaker Change: Despite.
Speaker Change: Several of our regulated regulatory and legal discussions surrounding the August event.
Speaker Change: We have introduced many initiatives to improve the response.
Speaker Change: Our parties involved in the future climate debate.
We believe.
Speaker Change: The government changes, we'll make such oven always Mark Franklin.
Speaker Change: Therefore, it is essential for our part is to act prompt promptly.
Speaker Change: <unk>.
Speaker Change: To ensure the proper functioning of the networks.
Giuseppe Turchiarelli: Let me provide you with some examples. We agreed. on Operational Emergency Guidelines with the Municipality. to better coordinate with our operational teams during climate events. We signed a collaboration agreement with the electro-dependent group to ensure backup for medical devices and to provide training on the correct use of the kip. We accelerate the rollout of the SMART metering program for electro-dependent clients and we conduct it through preventive aerial inspection of the grid in preparation for the upcoming winter, particularly to identify any potential additional damage from the August event and to address any further needs for preventive trimming.
Speaker Change: Let me provide you with some examples.
Speaker Change: We agreed to.
Speaker Change: On operational emergency guidelines with the municipality to.
To better coordinate with our operational teams during climate event.
Speaker Change: We signed a collaboration agreement with the electoral dependent group to ensure backups for medical devices and to provide training on the correct use of their keep.
Speaker Change: We accelerate the rollout of the smart meter program for later dependent clients.
Speaker Change: We conducted through <unk>.
Speaker Change: It really is.
Speaker Change: It's based on a decrease in preparation for the upcoming winter, particularly.
Speaker Change: <unk> any potential additional damage from the oldest stebbins and to address any further needs.
Speaker Change: But I mean.
Speaker Change: Screaming.
Giuseppe Turchiarelli: Parts of this action were already included and presented as part of the Enel Distribución 2025 Autumn-Winter Season Plan, which was submitted to the SEC on February 19, 2025. in the distribution sector will remain committed. to promoting reform and modernizing the regulatory framework to enhance Asset Resilience This effort will enable us to optimize the value of our distribution network, fully meet our clients' needs, and ensure long-term sustainability.
Speaker Change: Part of these actions were already included embracing it as part of this it will assume 2025 autumn and winter season plan, which was submitted to the SEC on February 19 2025.
Speaker Change: In the distribution sector, we remain committed.
To promoting reform.
Speaker Change: <unk> the regulatory framework right now.
Speaker Change: Asset resilience.
Speaker Change: These efforts.
Speaker Change: Allow us to optimize the value of call our distribution network.
Speaker Change: Clearly meet our clients needs and they should have long term sustainability.
Giuseppe Turchiarelli: Talking about regulation, let's take a look at the main update on the next slide. a frequent event to climate change, therefore We continue to advocate for a new model based on real apps. that addresses factors such as proper remuneration rates and incentive mechanisms for resilience.
Speaker Change: Okay.
Speaker Change: Talking about the regulation, let's take a look at the main update on the next slide.
Speaker Change: Okay.
Speaker Change: A supportive regulatory framework is crucial for attracting investment necessary.
Speaker Change: For the energy therapy.
Speaker Change: Providing resilience against increasingly.
Speaker Change: Extreme.
Speaker Change: A fragrance to.
Speaker Change: Climate change therefore.
Speaker Change: We continue to advocate for a new model beads real update.
Speaker Change: That addresses factors such as proper revenue ratio right.
Speaker Change: The thing is to make earnings for resilience.
Giuseppe Turchiarelli: Quality and Performance Improvement We appreciate the consensus among academia, the electrical industry, and the Congress on the urgency of the distribution reform and hope it will soon be part of the legislative agenda once the legislative member returns in March. The process for the 2024-2028 VAD has started using the same methodology applied for the 2020-2024 cycles, the reference model company. The delivery and official publication of the consultant final report are expected by the end of March, and we estimate that by the second quarter of 2025, the regulator will publish the preliminary technical report on this new cycle.
Speaker Change: Quality and performance improvement.
Speaker Change: We appreciate the call, saying, some among academia, the electrical industry and the Congress on the Eugene seat of the distribution of our firm.
Speaker Change: And hope it will soon be part of the legislative agenda, what the legislative remember wreaked on in March.
Speaker Change: The process for the 2024 2028.
Speaker Change: D has started using the same methodology applied for the 2020 'twenty 'twenty four cycles that reference model the company.
Speaker Change: The delivery.
Speaker Change: And the official publication of the consultant report.
Speaker Change: By the end of March.
Speaker Change: We estimate.
Speaker Change: That by the second quarter of 2025, the regulator will publish the preliminary technical report on this new cycle.
Giuseppe Turchiarelli: We expect an improvement in remuneration for this new process. considering the newly approved Valor Nuevo de Reemplazo, VNR, and all the economic and technical assumptions of December 2022 included in the record. We believe that this factor will be confirmed in the various stages of this process.
Speaker Change: We expect an improvement elimination for this new process.
Speaker Change: Considering the newly approved by lower wherever they are in plaza.
Speaker Change: And all the economic and technical assumption of the December 2022 included indirect cost we believe.
Speaker Change: That this factor will become firm in the various stages of this process.
Giuseppe Turchiarelli: Regarding the PEC, since October of the last year, we have not accumulated additional receivables. As the client, tariff now reflects the real contract price. in December 2024. The decree for the first half of 2025 PMP was published. and the regulated tariff was updated. In this process, the average residential consumer in the metropolitan region of Santiago experienced an average increase of around 12%. mainly due to the integration of the Client Protection Mechanism, MPC, into their tariff. This mechanism allows for the gradual repayment of accumulated debt to the generator and establishes a transitional subsidy for the most vulnerable clients.
Speaker Change: But I got in the back seat.
Speaker Change: But yes.
Speaker Change: We have not accumulated additional receivable.
Speaker Change: The client Todd is now that's like that.
Speaker Change: Right.
Speaker Change: In December 2024.
Speaker Change: The decrease for the first half of 2025 E&P was published.
Speaker Change: In the regulated tariff it was updated.
Speaker Change: In this process the average residential consumer.
Speaker Change: In the Metropolitan region of San Diego experienced an average increase of around 12%.
Speaker Change: Mainly due to the integration of the client protection mechanism in B C into their parties.
Speaker Change: This mechanism allows for the grad or repayment of accumulated depth to the generator and establish it.
Speaker Change: And in seasonal subsidy for the most vulnerable clients.
Giuseppe Turchiarelli: On the other hand... Client with consumption higher than 350 kWh per month that have been paying for this mechanism since last year saw a decrease of approximately 3% compared to their tariff from the last year. Related to the PEC accrual, as of December 2024, we had an account receivable related to the PEC already net of factoring and including readjustment and interest of around $500 million. showing a reduction of around 40% versus 2023. This reduction is mainly. due to the factoring executed last October 2024. We expect to execute a new factoring during the second quarter 2025 of around $250 million.
Speaker Change: On the other end.
Speaker Change: Client with consumption higher than 350 kilowatts of power at the moment.
They've been paying for these making since last year. So a decrease of approximately 3% compared to their direct from the last year.
Speaker Change: Relative to the Pic accrual as of December 2024.
Speaker Change: And accounts receivable related to the back.
Speaker Change: Net of Fox sorting and including adjustments an increase of around $500 million shoe.
Speaker Change: Boeing a reduction of around 40% versus 2023.
Speaker Change: You said at auction.
Speaker Change: Mainly.
Speaker Change: Due to the facts I mean executed last October 2024.
Speaker Change: We expect to execute a new factory in during the second quarter 2025 of around 250 million.
Giuseppe Turchiarelli: Let's move to the right side of the slide, where we will review the key points of the government's proposed law to expand subsidies. which currently benefits around 1.8 million feminists. The new proposal aims to extend coverage to approximately 4.7 million families targeting the 40% most vulnerable households in Chile. In January 2025, the Chamber of Deputies approved the government-proposed text, with some changes. The proposal, which will now move to the Senate for its second legislative stage, includes various instruments to fund the subcommittee. The key instruments to fund this advocacy are as follows. allocating the additional VAT revenue.
Speaker Change: Let's move to the right side of this slide where we will review the key points of the government proposed law trucks on top cities.
Speaker Change: <unk> currently been facing benefit around 1.8 million families.
Speaker Change: The new proposal aims to expand coverage to approximately.
Speaker Change: $4 7 million families targeting the 40% most vulnerable household in Chile.
Speaker Change: In January 2025, the churn, but they put is approved the government proposed text with some changes.
Speaker Change: The proposal, which we'll now move to the center.
Speaker Change: A second leg.
Speaker Change: <unk> includes bodies instrument to found the subsidies.
Speaker Change: The key instrument.
Speaker Change: They are as follows.
Speaker Change: Allocating additional EBT revenue.
Giuseppe Turchiarelli: that the Treasury is collecting due to the increase in the tariff. Implementing a temporary surcharge on the green tax emissions, increasing it from the current $5 per tonne of CO2 emitted. Also, in this project, the Chamber of Deputies has approved the following. increasing the amount of compensation that the distribution company must pay to clients in case of distribution power outages. And, for what concerns the small and medium companies, replacing the price of electricity currently provided through the regulated contract with a price that includes a reduction coming from the electricity prices of PMGD. in order to offer a tariff discount to this client, limited to 500 EUR per year.
Speaker Change: Revenue.
Speaker Change: The treasury is collecting due to the increasing the tariff.
Speaker Change: Implementing a temporary surcharge on the green tax emissions, increasing heat from the current $5 tons of steel to emitted.
Ken: So Ken described yet the chamber of day parties has approved the following.
Speaker Change: Increasing the amount of compensation that.
Speaker Change: Distribution company must pay to clients in case of distribution power outages.
Speaker Change: And.
Speaker Change: For what concern.
Speaker Change: Mall and medium companies.
Speaker Change: Replacing in the price of electricity.
Speaker Change: Currently provided through the regulated contract with a price that include a reduction coming from the electricity price itself.
Speaker Change: In GB.
Speaker Change: You know the 12 Fedex ecstatic discount to described you're limited to Fiat 500 Gigawatts hour.
Giuseppe Turchiarelli: As Enel, we support the government's efforts to assist the most vulnerable families aimed at potential economic challenges. While this solution aims to provide necessary support, it is important to ensure that they do not disrupt the march. has occurred since 2019.
Daniel: As Daniel.
Daniel: We support the government efforts plus ceased the most vulnerable families Amy potential economic challenge.
Daniel: Sure.
Daniel: While this solution aimed to provide necessary support it is important to ensure.
Daniel: They do not disrupt the market.
Court since 2019.
Giuseppe Turchiarelli: For a sustainable approach, it is essential to consider a measure that preserves long-term investments, competitiveness, and the energy sector. We believe that allocating additional VAT revenue could be a viable and sustainable option among the proposed measures.
Daniel: But it's a sustainable approach it is essential to consider a measure that.
Daniel: Long term investment competitiveness and the energy sector.
Daniel: We believe that allocating additional EBT revenue could be a viable and sustainable option among the proposed measure.
Giuseppe Turchiarelli: I will now conclude with our commitment and deliverables on slide 9. Let me point out that we have reached our main financial target for the year 2024. Our results adjusted for the no-cash effect. of the change in function and currency show an EBDA of $1.4 billion and a net income of $0.6 billion. These achievements reflect our ability to generate value in a resilient and flexible manner. even in a challenging environment. A more efficient portfolio mix, driven by improved hydrological conditions, allowed us to meet our EVDA net income commitment of our guidance announced during 2024 Investor Day.
Daniel: I will now conclude with our commitment on Debbie and debate about.
Daniel: Slide 19.
Daniel: Okay.
Daniel: Let me point out that we have reached our main financial targets for the year 2024.
Daniel: Our results adjusted for the noncash effect.
Daniel: Of the change in functional currency show, an EBITDA of $1 $4 billion.
Daniel: And the net income of zero Brinci.
Daniel: These achievements reflect our ability to generate value in a resilient and flexible manner.
Daniel: Even in a challenging environment.
Daniel: A more efficient portfolio meat.
Daniel: Driven by improved hydrological condition.
Daniel: Although the us to meet our EBITDA net income commitment of all our guidance and now during 2020 for Investor Day.
Simone Conticelli: Simone will provide details on our performance on EBDA and net income in the following slides.
Daniel: Shimon will provide details on our plans for months on EBITDA and net income in the following slides.
Giuseppe Turchiarelli: Be safe! The action taken during 2024 have ensured the fulfillment of our leverage and NetDev to EVDA commitments, allowing us to recommend maintaining the committed payout in our guidance. This recommendation was also endorsed by the Company Board of Directors and will be submitted for approval at the 2025 Annual Shareholder Meeting.
Daniel: Okay.
Daniel: Great.
Daniel: Okay.
Daniel: The actions taken during 2024.
Daniel: Having ensured the fulfillment of our leverage and net debt to EBITDA commitments, allowing to recommend maintaining the committed pay out in our guidance.
Daniel: This recommendation.
Daniel: <unk> was also endorsed by the company board of directors.
Daniel: It will be submitted for approval.
Daniel: 2025, North shuttle.
Simone Conticelli: Now, I will hand over to our Cipo, Simone Conticelli. Simone, the floor is yours.
Daniel: Now I will hand over to our CFO Simona Simona.
Simona: Simona the floor is yours.
Simona: Yes.
Simone Conticelli: Many thanks Giuseppe and good morning everyone.
Simona: Many thanks.
Simona: Good morning, everyone.
Simone Conticelli: I will start my presentation with a summary of our main results of the period. First, to better evaluate our company's earning performance, we present the 2023 and 2024 figures, adjusted by the following one-time effect. For 2024, full-year and four-quarter EBITDA and net income have been adjusted by the non-cash effect of the change in the functional currency. Respectively, amounting to $657.468 million. For 2023, the full year and fourth quarter net income exclude the capital gains obtained from the sale of Arcadia, executed last year, and amounting to $163 million. and the Full Year FFO exclude the taxes paid on capital gains obtained from the sale of Enel transmission, amounting to $310 million.
Simona: I will start my presentation with a summary of our main results between Egypt.
Simona: Third to better evaluate our company's performance, we present, the 2023 and 2024 figures.
Simona: Adjusted by the following one time effects.
Simona: For 2020 for full year and fourth quarter EBITDA and net income have been adjusted by the non cash asset.
Simona: Of the change in the functional currency.
Simona: Steve Willey amounting to 657 and $468 million.
Simona: For 2023 full year and fourth quarter net income exclude the capital gains obtained from the sale of Arcadia executed last year and amounting to $163 million.
Simona: And the full year <unk>, excluding the taxes paid on capital gains obtained from the sale of Cosmesis, Sean amounting to $310 million.
Simone Conticelli: Considering this adjustment, let's pass to the analysis of economic and financial performance, starting with a quick overview of the key figures, which I will detail in the following slides. adjusted full year 2024 EBITDA and net income recorded significant improvements when compared to the previous year indicators. despite the negative impact of the force majeure event of August 2024. This is mainly explained by a more efficient sourcing mix, boosted by a better hydrological situation. and an increase in our energy sales and better pricing. These results demonstrate the resilience of our business and the solidity of our strategy.
Simona: Considering these adjustments let pass to Daniel this is economic and financial performance.
Simona: With a quick overview of the key figures, which I will detail in the following slides.
Simona: Adjusted full year 2020 for EBITDA and net income record that significant improvements when compared to the previous C. Our indicators.
Simona: Despite the negative impact of the force majeure event.
Simona: Booster 2024.
Simona: This is mainly explained by and more efficient sourcing mix boosted by a better logical question.
Simona: And an increase in our energy sales and better pricing.
Simona: These results demonstrate the resilience of our business and the solidity of our strategy.
Simone Conticelli: Furthermore, the full year 2024 figures show an important FFO increase versus previous year, mainly due to a better EBITDA and the PEX factoring operation, with a significant impact on the fourth quarter.
Simona: Furthermore, the full year 2020 for sure.
Simona: So an important <unk> increase semesters PUC arrow, mainly due to a better EBITDA and factoring operation.
Simona: And if he can impact on the fourth quarter.
Simone Conticelli: And now, on the next slide, let's review the progress on CAP. Our total capex reached $583 million during 2024, 90% lower than the previous year, considering the conclusion of several renewables and storage projects over the 2023-2024 period. 61% of the total CAPEX, amounting to $355 million, was mainly related to renewable and storage deployment CAPEX. and 22 percent, equivalent to 130 million dollars, was related to Greece. Asset management capex reached $203 million, which represents 35% of our total capex. It increased around 77% compared to 2023 figures, mostly due to the following facts in both businesses. In the generation business, an increase of $58 million was mostly related to maintenance activity in the Atagama CCGT power plant and also in the solar and wind.
Simona: And now on the next slide lets review the progress on Capex.
Simona: Yes.
Simona: Our total Capex reached 500.
Simona: $83 million during 2024, 90% lower than the previous year.
Simona: Considering the conclusion of server and.
Simona: And storage projects over the 2000 23024.
Simona: Okay.
Simona: 61% of the total capex amounting to 355 million dollar.
Simona: Was mainly related to renewable and storage deployment capex.
Simona: And 22% equivalent to $130 million.
Simona: Was related to two credits.
Simona: Asset management Capex reached 203.
Simona: Which represents 65% of our total capex at.
Simona: It increased around 77% compared to 2023 feed gas, mostly due before when Fox in both businesses.
Simona: In the generation business, an increase of $58 million us most.
Simona: Most most III related maintenance activity in Delta Gamma <unk>.
Simona: Our plan.
Simona: Also in the solar and wind assets.
Simone Conticelli: In the distribution business, an increase of $30 million due to climate event emergency and maintenance activities related to the line failure.
Simona: In the distribution business, an increase of $30 million due to climate event emergency and maintenance activities related to the line failures.
Simone Conticelli: Finally, the development capex reached 318 million dollars, a decrease of 40 percent compared to 2023 figures, mainly due to the conclusion of renewable and best projects.
Simona: Finally, the development Capex reached $318 million, a decrease of 40% compared to 2023 figures, mainly due to conclusion of renewable and best projects.
Simone Conticelli: So let's move to the next slide, where we have a summary of the fourth quarter EBITDA breakdown. During the fourth quarter of 2024, our adjusted EBITDA reached $424 million excluding, as anticipated, the one-time and non-cash effects of the change of functional currency. A $5 million increase compared to the same period of 2023 is primarily due to the following effects.
Simona: So let's move to the next slide where we have a summary of the fourth quarter EBITDA breakdown.
Simona: During the fourth quarter 2000.
Simona: 24, our adjusted EBITDA reached $424 million.
Simona: As anticipated the one time and non cash effects of the change of functional currency.
Simona: And finally on dollar increase compared to the same period of 2000.
Simona: 'twenty three is primarily due to the following effects.
Simone Conticelli: In the generation business, we recorded a $71 million increase due to a significant contribution from PPA sales. This growth is mainly related to price ineffects, primarily due to contract indexation in the free market, and higher volumes, especially in the regulated market. Additionally, we recorded an increase of $33 million due to positive performance in our generation. This is mainly explained by lower production costs. resulting from reduced thermal generation dispatch, partially offset by higher commercial.
Simona: In the international business, we recorded $71 million increase due to a significant contribution from <unk> sales.
Simona: This growth is mainly related to pricing and FX, primarily due to contract indexation in the free market and high yield volumes, especially in the regulated market.
Simona: Additionally, we recorded an increase of $33 million due to positive four months in our regeneration.
Simona: This is mainly explained by lower production costs, resulting from reduced as thermal generation dispatch, partially offset by higher commercial costs.
Simone Conticelli: The positive performance of the generation business was reduced by $68 million, mainly due to the reduction of the gas trading margin given the 2023 upstanding. Regarding grids, we record a $9 million positive impact, mainly due to an increase in remuneration associated with the rise in the Valor Nuevo de Remplazo, the PNR.
Simona: The positive performance of generation business was reduced by $68 million, mainly due to the.
Simona: The reduction of gas trading margin given.
Simona: Austin community outstanding results.
Simona: Okay.
Simona: Regarding <unk>, we recorded $9 million positive impact mainly due to an increase in remuneration associated with the rise in the borrower wherever they are impossible date.
Simone Conticelli: However, this margin was more than offset by the impact of last year's extreme weather events, including the first major event, UNODC.
Simona: <unk>.
Simona: However, this margin was more than offset by the impact of last year extreme weather events, including the force majeure event.
Simone Conticelli: The impact amounted to $41 million, including fines and clients' voluntary compensation programs. So, let's move to the next slide to review the full year EBITDA breakdown. In the full year 2024, our adjusted EBITDA reached $1,421 million, not considering the impact of functional currency change. The increase versus 2023 amounts to $320 million, primarily due to A significant contribution of $321 million from PPA sales in the generation segment, mainly explained by higher volume, especially in the regulated market, and pricing effect related to the contract indexation in the free market. The positive impact of $2,027 million from the generation sourcing activity, mostly due to lower variable production costs resulting from lower thermal generation, thanks to the remarkable hydrology during the year.
Simona: Yeah.
Simona: The impact amounted to $41 million, including fines and clients voluntary compensation program.
Simona: So let's move to the next slide to review the full year EBITDA breakdown.
Simona: Yes.
Simona: In the full year of 2024.
Simona: The EBITDA reached 1420 $1 million not considering the impact of functional currency change.
Simona: The increase versus 2023 amounts to $320 million primarily due to.
Simona: A significant contribution of $321 million from EPA fails in the generation segment.
Simona: Mainly explained by higher volume, especially in the regulated market and price in that sector related contract indexation in the free market.
Simona: The positive impact of <unk> $27 million from the generation sourcing activity, mostly due to lower variable production costs, resulting from lower thermal generation. Thanks to the remarkable hydrology during the year.
Simone Conticelli: and lower price in spot market purchases partially offset by higher purchases from the third party. The reduction of gas trading margin compared to 2023 outstanding performance amounting approximately to $0.2 billion. Finally, regarding Greece, we recorded a $31 million positive effect for the full year, primarily due to the increase in the remuneration linked to the publication of the VAD 2024 regulatory report, the increase in the value of nuevo del emplazo, and the tariff indexation partially offset by higher technical losses and the negative impact of inflation on our economy.
Simona: And lower price and spot market or stresses partially offset by higher purchases from the third parties.
Simona: The reduction of gas trading margin compared to 2023, extending our four months amounting approx.
Simona: Two zero point $2 billion.
Finally regarding Greece, we recorded $51 million positive effect for the full year, primarily due to the increase in the international linked to it.
Simona: As shown on dosing.
Simona: <unk> thousand.
Simona: 24 regulatory report.
Simona: The increase in development, where would it imply stone and the tariff indexation, partially offset by higher technical losses, and the negative impact of inflation on our costs.
Simone Conticelli: These results were more than offset by the impact of extreme weather events that amounted to $62 million for the full year, including fines and clients' voluntary compensation programs. And now let's move to the next slide, where we will review the net income evolution. Our full year 2024 net income amounted to $622 million. 22% higher than last year's figure, mainly explained by the already commented EBITDA improvement.
Simona: Okay.
Simona: These results were more than offset by the impact of extreme weather events that amounted to $62 million for the full year, including fines and clients more onto a compensation program.
Simona: Yes.
Simona: And now let's move to the next slide where we will review.
Simona: Net income.
Simona: Sean.
Sean: Our full year 2024, net income amounted to $622 million.
Sean: 2% higher than last year, mainly.
Sean: Mainly explained by the already commented the EBITDA improvement.
Simone Conticelli: So now let's comment the additional effects for this year. Referring to depreciation, amortization, impairment, and bad debt, we recorded higher costs for $81 million, mainly resulting from Higher depreciation in the energy. An impairment made in December 2024 related to Lasallina Extension Projects. Higher bad debt accrual in grids due to a worsening in clients' payments behavior and higher taxes. Regarding financial results and equity investment, we recorded a $75 million negative variation versus last year, mainly explained by positive exchange rate differences in 2023 and higher financial expenses, mainly due to FX variation and higher amount of PEC receivable also in 2023.
Sean: So now let's comment.
Sean: Additional effects for this year.
Sean: Referring to depreciation amortization impairment and bad debt, we recorded higher cost for $81 million, mainly resulting from.
Sean: Higher depreciation in the <unk>.
Sean: In energy and power due to new renewable capacity and Chilean peso devaluation in the period.
Sean: An impairment made in December 2024 related to Latam.
Sean: Especially on projects.
Sean: Higher bad debt accrual increase due to a worsening in clients payments behavior and higher tariffs.
Sean: Regarding financial results and equity investment we record that.
Sean: $75 million negative body has shown versus last year, mainly explained by.
Sean: Positive exchange rate difference in 2023.
Sean: Other financial expenses, mainly due to FX variation and not yet amount of receivable also in 2023.
Simone Conticelli: Finally, on income taxes, we record a $39 million increase, mainly due to bad results in the period.
Sean: Finally on income taxes, we recorded a $39 million increase mainly due to better results in the period.
Sean: Yes.
Simone Conticelli: Focusing on the quarter, our adjusted net income decreased by $37 million. This is mainly explained by, first, the difference of impairment accounted in the period for $29 million, Second, the higher financial expenses for $10 million mainly due to lower interest recognition relative to PEC 2 in the fourth quarter 2024, partially offset by positive exchange rate differences in 2023. These effects were partially offset by lower tax expenses of $2 million, mainly due to lower EBT in the fourth quarter of 2024.
Sean: Okay.
Sean: Focusing on the quarter, our adjusted net income decreased by $37 million. This is mainly explained by first the difference of impairment accounting for $29 million.
Sean: Second the higher financial expenses for $10 million, mainly due to lower interest recognition.
Sean: <unk> two in the fourth quarter 2024.
Sean: Partially offset by positive exchange rate differences in 2023.
Sean: These effects were partially offset by lower tax expenses of $2 million, mainly due to lower EBIT in the fourth quarter.
Sean: <unk> 2004.
Simone Conticelli: And now let's move to the effect of analysis on the next slide. Let's analyze the FFO composition for 2024 period and the main effects when compared to 2023.
Sean: And now let's move to the <unk> analysis on the next slide.
Sean: Okay.
Let's analyze the FFL composite shown for 2024.
Sean: And the main FX when compared to 2023.
Simone Conticelli: It is worth mentioning that the 2023 FFO figures have been adjusted by $310 million related to taxes paid on capital gains from the sale of Enel Transmission Chile in December 2023. 2024 FFO reached $1,209 million. It means an improvement of $332 million versus 2023 as a result of the following factors. First, the adjusted EBITDA amounted to $1.4 billion with the already explained positive variation of $320 million versus 2023 results. Second, the cumulative negative impact of the stabilization mechanism amounted to $310 million. which was more than offset by the execution of the IDB factoring related to PEX-2 and PEX-3, amounting to $697 million.
Sean: Okay.
Sean: Mentioning that the 2023 <unk> figures have been adjusted by $310 million related to taxes paid on capital gains from the sale of annual transmission, Chile in December 2022.
Sean: Sure.
Sean: 2020 for SSL reach at 1200 $9 million. It means an improvement of $332 million. That's just 2020.
Sean: As a result of the following factors.
Sean: First the adjusted EBITDA amounted to one.
Sean: $4 billion, we they already explained in a positive variation of $320 million.
Sean: 2002 thousand <unk> results.
Sean: Second the cumulative negative impact of the stabilization mechanism and months amounted to $310 million.
Sean: Which was more than offset by the execution of IDB factor related to Capex and tax rate amounting to 600.
Sean: And $97 million.
Simone Conticelli: If we compare the 2024 total effects of the PEC, net of factoring, versus 2023, we see an increase of $393 million. Third, the increase of net working capital equal to $153 million, mostly due to capex payments related to renewable development in the second half of 2023.
Sean: If we compare the 2024 total FX of the pack net of factoring verses 2023, we see an increase of $393 million.
Sean: The increase of net working capital equal to $153 million.
Sean: Mostly due to capex payments related to renewable development in the second half of 2023.
Simone Conticelli: Compared to the last year's figures, the impact of working capital on FFO was negative for $233 million mainly due to capex payment related to 2023 renewables, collection impact from distribution business, and cash-in from the sale of Santa Rosa building received in 2023. Fourth, the income taxes that negatively impacted our FSAO by $205 million, primarily due to tax payments related to generation business and to the sales of Arcadia. Comparing Income Taxes Paid in 2024 vs. paid in 2023, we see a negative effect of $174 million. The difference is mainly due to the tax payment of Arcadia transactions in 2021.
Sean: Compared to the last year figures the impact of working capital on <unk> was negative $133 million, mainly due to capex capex payments related to 2023 renewables.
Sean: Election impact from distribution business and cash in from the sale of Santa Rosa <unk> received in 2023.
Sean: For the income taxes that negatively impacted our FX fell by $105 million, primarily due to tax payments related to generation business and to the seeds of Arcadia Austin.
Sean: Comparing income taxes paid in 2024 vessels.
Sean: Paid in 2023, we see a negative FX of $174 million.
Sean: The difference is mainly due to the tax payment of a carrier transaction in 2024.
Simone Conticelli: Higher tax payment in the generation business and lower recovery from previous periods. And finally, the financial expenses amounting to $241 million, mainly due to the debt-related Compared to the last year, our financial expenses decreased by $25 million in 2024.
Speaker Change: Hi, yes tax payment in the generation business.
Sean: And lower recovery from previous periods.
Sean: And finally, the financial expenses amounting to $241 million, mainly due to debt related expenses.
Sean: Compared to the last year financial expenses decreased by $25 million in 2024.
Simone Conticelli: This decrease was mainly due to the financial expenses related to PEC-1 in 2020.
Sean: This decrease was mainly due to the financial expenses related to pick one in 2023.
Simone Conticelli: So now let's take a look at our liquidity and leverage position. Our gross debt decreased by 11% to $3.9 billion as of December 2024 compared to December 2020. This decrease was mainly due to the optimization on the use of cash from the PEC-3 factory, which took place in October 2024, and the operational cash generation during the year. The average term of our debt maturities slightly increased to 6.2 years as of December 2024 versus 6.1 years in December 2023, and the portion of gross debt at fixed rate was 89% of the total debt in December 2024.
Sean: So now, let's take a look at our liquidity and leverage.
Sean: Sure.
Sean: Yeah.
Sean: Our gross debt decreased by 11% to $3 9 billion as of December 2024, compared to December 2023.
Sean: This decrease was mainly due to optimization on the use of cash from the factory factory, which took place in October 2024, and the operational cash generation during the year.
Sean: The average term of our debt.
Sean: Maturity is slide slightly increased to six point to Es.
Sean: And by 2024 versus six <unk> in December 2023.
Sean: And the portion of gross step at <unk>.
Sean: Right that was 89% of the total depth in December.
Sean: 24.
Simone Conticelli: The average cost of our debt reached 5.0 as of December 2024, slightly above the 4.9% recorded in December 2023, primarily due to the Enel Generation Yankee bond maturity in April 2024 for $400 million at 4.25%.
Sean: The average cost of our debt reached five zero as of December 2024 slightly above.
Sean: Four 9% recorded in December 2023, primarily due to the energy generation Yankee bond maturity in April 2024 for $400 million.
Sean: At 425%.
Simone Conticelli: And finally, regarding liquidity, we are in a comfortable position to support our capital needs for the upcoming months and cope with 2025 maturity. As of December 2024, we had available committed credit lines for $690 million and cash and cash equivalents for $385 million.
Sean: And finally regarding liquidity we are.
Sean: Comfortable position to support our capital needs for the upcoming months and Copa we 2025 maturities.
As of December 2024, we had a viability avail.
Sean: Available committed credit lines for 609.
Sean: $90 million and cash and cash equivalents at four $385 million.
Simone Conticelli: With the financial debt analysis we close our comment on the company figures, so thanks everybody for the attention and now I will leave the floor to Giuseppe for the final remarks.
Yes.
Sean: We the financial depth analyses, we close our comment on the company. So thanks, everybody for dentition and now I will leave the floor to <unk>.
Sean: For the final remarks.
Giuseppe Turchiarelli: Thank you, Simone.
Speaker Change: Thank you Simona.
Giuseppe Turchiarelli: To conclude my presentation, I would like to give you the following closing remarks. Despite the very challenging context related to the client's events registered in August, Enel Chile's resilient business model allowed us to obtain robust results for the year. Naming us to fulfill our commitment to all our shareholders. Livia We have delivered a robust economic and financial performance. aligned with the target and strategic pillars presented on our last Investor Day. This gives us confidence that Enel Chile is more than prepared to operate in a volatile environment. and to take advantage of the new opportunities.
Speaker Change: To conclude my presentation I would like to give you.
Speaker Change: Following closing remarks.
Speaker Change: Despite the very challenging context related to their clients domains registered in August and then Sheila Racine and more business model.
Speaker Change: No doubt to obtain robust results for the year.
Amy: And Amy.
Amy: To fulfill our commitment to all our shareholders.
Amy: <unk>.
Amy: We have delivered a robust economic and financial performance.
Amy: Aligned with our target and strategic pillar presented on our last Investor day.
Amy: These give us confidence that any Chile is more than prepared to operate in a volatile environment.
Amy: To take advantage of new opportunities.
Giuseppe Turchiarelli: For 2025, we will continue to advocate for utilities reform and the modernization of the regulatory framework to enhance asset resilience. This will help us optimize the value of our assets across both businesses and ensure long-term sustainability.
Amy: Our 2025, we will continue to advocate for the activities that a farm.
Amy: And the modernization of the regulatory framework.
Amy: Asset resilience.
Amy: This will help us optimize the value of our assets across both businesses and ensure long term sustainability.
Giuseppe Turchiarelli: Finally, to conclude on April 28th... We will hold our annual sharehold meeting, during which the final and extraordinary dividends to be paid in May 2025 will be proposed, including the interim and eventual dividends, the total amount will be 4.24 trillion pesos per share.
Amy: Finally to conclude on April 28.
Amy: We will all our.
Amy: Shuttle meeting.
Amy: During which the final an extraordinary dividend to be paid in May 2025 will be proposed.
Amy: Including the interim dividend total dividend the total amount will be.
Amy: Four point 24, Chilean pesos per share now, let me hand over to Isabella for the Q&A session.
Isabela Klemes: Now, let me hand over to Isabela for the Q&A session. Thank you, Giuseppe. Thank you all for your attention here.
Isabella Claims: Thank you.
Isabella Claims: Thank you all for your attention. We are now begin with our Q&A session. We received questions via phone and chat in the webcast.
Speaker: We will now begin with our Q&A session. We received questions via phone and chat in the webcast. The Q&A session is open.
Speaker Change: The Q&A session is open operator. Please you may start. Thank you so much and as a reminder to our audience just press star one one to get in the queue and wait for your name to be announced.
Speaker: Operator, please, you may start. Thank you so much. And as a reminder to our tele audience, just press star 11 to get in the queue and wait for your name to be announced. To remove yourself, press star 11 again. Thank you.
To remove yourself press star one again, thank you one moment for our first question.
Alessandro De Vito: One moment for our first question. And it's from Alessandro De Vito with Mediobanca. Please proceed. Hi, hi all and thanks for taking my question. I have three or four. The first one is we saw a couple of days ago that you had a big blackout in Chile and it looked like it was a systemic event, so I wanted to understand whether distribution companies like yourself will be liable for potential penalties or it was more like a systemic event, so no fault on networks. That's the first question. Second question, I was looking at the hydro output, your assumption for 2025 of 10.7.
Speaker Change: And he's from Alessandro the veto with Mediobanca. Please proceed.
Speaker Change: Hi, Hi Hall, and thanks for taking my question I have three or four.
Speaker Change: First one is.
Speaker Change: We saw a couple of days ago.
Speaker Change: You had I guess.
Speaker Change: Big Blackout and Sheila.
Speaker Change: And it looked like it was.
Speaker Change: Systemic events so.
Speaker Change: I wanted to understand what the distribution companies like yourselves will be liable for potential penalties or it was more like a systemic event. So.
Speaker Change: No fault on our networks.
Speaker Change: The first question.
Speaker Change: One question.
Speaker Change: I was looking at the hydro output your assumption for 2025 of $10 seven.
Giuseppe Turchiarelli: I understand that we come from, that the estimate is based on our 10 years average, but we come from two exceptionally wet years, so would you argue that this estimate could be conservative? And maybe it would be interesting to understand if you had moved some, maybe a portion of the extra 2024 hydro resources for production in 2025. A third question is more related to batteries, because we saw that you started operation of 200 megawatts of batteries. I wanted to understand whether these were standalone batteries or they were part of a hybridized renewable plant. And if they are standalone batteries, I wanted to understand which ARR do you see on battery projects in the country and, in general, how do you see the ramp-up in standalone battery capacity in the country for the coming years?
Speaker Change: I understand that we come from.
Speaker Change: The estimate is based on a 10 year average, but we come from two exceptionally wet. So would you argue that does estimates will be conservative and maybe it would be interesting to understand if you had moved some maybe a portion of the ex cats 92004.
Speaker Change: Yes.
Speaker Change: <unk> and 'twenty five.
Speaker Change: Our first question is more related to block producer because we saw the two we've started operation.
Speaker Change: At 200 megawatts, but the reason I wanted to understand whether these were.
Speaker Change: Standalone batteries or faster than EBITDA as renewable plans.
Speaker Change: And if they are.
Speaker Change: Standalone batteries I wanted to understand which I had do you see them battery projects in the country and in general how do you see the ramp up in Standalone battery.
Speaker Change: Capacity in the <unk>.
Giuseppe Turchiarelli: And the last one, last question, is if you confirm 25 gallons that was included in the latent PV. Thank you.
Speaker Change: For the upcoming years and the last one last question is if you confirm 35 guidance or that was it.
Speaker Change: The liquids.
Giuseppe Turchiarelli: Thank you, Alessandro, for your question. I will pass to Giuseppe. Okay.
Speaker Change: Thank you Alessandro for your question I will pass to just happen.
Giuseppe Turchiarelli: Well, let's start from the blackout. For what concerns this massive interruption of the electricity supply that has been caused by the transmission system and disconnection... which unfortunately affected also our distribution company. We are not liable for any, any, um... penalty because we are not responsible as a distribution company for this interruption. Of course, there will be Several analyses that has to be made by the coordinator and the SEC. So we're going to see which will be the results. But as of today, our information is that everything's coming from an interaction in the transmission line. So we don't foresee right now any kind of penalty for our distribution.
Speaker Change: Okay.
Speaker Change: Well, let's start from the blackout.
Speaker Change: Sure.
Speaker Change: No.
Speaker Change: But what's concerning this.
Speaker Change: <unk> CV interruption of the electricity supply that is being caused by the transmission system in this formation.
Speaker Change: We.
Speaker Change: We shall unfortunately affected also our distribution company.
Speaker Change: We have not.
Speaker Change: Liable for any.
Speaker Change: Mainly because we are not responsible if distribution company.
Speaker Change: These are in there.
Speaker Change: The option of course, there will be.
Speaker Change: Yeah.
Speaker Change: Say that on an analysis that has to be made by the coordinator.
Speaker Change: So we're going to see which will be the results but as of.
Speaker Change: Today, our information is that everything is coming from.
Speaker Change: And interaction that does mean frontline. So we don't foresee right now any kind of penalties for our disabled.
Speaker Change: For what concern.
Speaker Change: Either or output for 2025 as Youll see in the press.
Speaker Change: In addition, we made there.
Giuseppe Turchiarelli: maybe conservative assumption using the 10-year average historical data. This is our current approach since several years. because we believe that, uh, uh, The hydrology is pretty volatile, so we prefer to take this kind of conservative approach. It's too early to understand whether there will be an extraordinary... Rainy season or weather condition, we're gonna see in the following month as soon as the winter season will start. So basically, email. We are confident to match this hydro production, and we're going to give you more information in the following month, not before May or June.
Speaker Change: Yeah.
Speaker Change: Maybe conservative assumption using the 10 year average.
Speaker Change: So recall that up.
This is our.
Speaker Change: Current approach six seven out of the year.
Speaker Change: Because we believe that the.
Speaker Change: Yeah.
Speaker Change: And <unk>.
Speaker Change: Or are you expecting in volatile so we prefer to take these kind of considered approach.
Speaker Change: It's too early to understand whether there will be an ex out any.
Speaker Change: Sure.
Speaker Change: And <unk>.
Speaker Change: Hmm.
Speaker Change: <unk> sees on a weather condition, we're going to see.
Speaker Change: In the following months as soon as the.
Speaker Change: The winter season with stock.
Speaker Change: So basically in May.
Speaker Change: We are confident that too.
Speaker Change: To match these.
Speaker Change: Either on production or we going to see.
Speaker Change: To.
Speaker Change: Give you more.
Speaker Change: Formation in the following months no not before May.
Speaker Change: Jordan.
Giuseppe Turchiarelli: Talking about the battery, the battery. that we have already in operation and the battery that has been present in the last capital market day are hybrid so basically we are going to build up together with solar or wind And for what's concerned The IRR is double-digit, of course the IRR depends on each project and the characteristics that the project has and the location that the project has in the system. And finally, the guidance, yes, we confirmed the 2025 guidance that we present in the last Capital Mark. Thank you, Giuseppe. Thank you. Thank you, Alessandro.
Speaker Change: Okay.
Speaker Change: Talking about the battery.
Speaker Change: The battery.
Speaker Change: That.
Speaker Change: We have already in operation and laboratory that is being presented in the last capital market day or hybrid so basically.
Speaker Change: One two.
Speaker Change: <unk> build up together with solar or wind project.
Speaker Change: Yes.
Speaker Change: And for Wisconsin.
Speaker Change: Yet our screen.
Speaker Change: I mean.
Speaker Change: D G.
Speaker Change: Of course that yet either.
Speaker Change: <unk>.
Each project.
And they are corrected EC debt.
Speaker Change: And the location of the project.
Speaker Change: We have in the system.
Speaker Change: And finally the guidance, yes, we confirm the 2025 guidance on that too.
Speaker Change: In the long term.
Speaker Change: Good day.
Speaker Change: Thank you. Thank you.
Speaker: Greta, do we have more questions coming from the line? Yes.
Speaker Change: Thanks Alexandra.
Speaker Change: More questions comes from the line, Yes, let me add bringing the next one to our stage and is from Martin answered with balanced capital. Please proceed.
Martin Arancet: Let me bring the next one to our stage. And it's from Martin Arancet with Balance Capital. Please proceed. Hi, well, thank you for the presentation and for taking my questions. I have three questions. First, regarding the distribution business, you mentioned a fine of almost $20 million and the voluntary compensation program. If I'm not mistaken, the government was also assessing the possibility of revoking the concession. I'm wondering if that's off the table or if the government is still working on assessing that possibility. My second question, well, regarding CAPEX, if you can share with us possibly the CAPEX plan for this year.
Speaker Change: Hi, Thank you for the presentation and for taking my questions I have.
Speaker Change: Three questions.
Speaker Change: First regarding the distribution business.
Speaker Change: Sean a fine of almost $20 million.
Speaker Change: The voluntary compensation program.
Speaker Change: I know you've taken the government was also assessing the possibility of revoking concession.
Speaker Change: Concession.
Speaker Change: I wonder if that's off the table or if the government is still working.
Speaker Change: On a system that possibility.
Speaker Change: My second question.
Speaker Change: Well regarding Capex as you can share with us.
Speaker Change: So really the Capex plan for this year.
Giuseppe Turchiarelli: And my third question, probably a follow-up of a recent question. I was wondering, what is your strategy, your commercial strategy with batteries? if it's just to take advantage of arbitrage opportunities due to low marginal cost during solar hours, or if you think that you could add the cost of batteries to new PPA prices to give a 24-7 solution. Thank you.
Speaker Change: And my third question, probably a follow up for recent question.
Speaker Change: I was wondering what is your strategy in Europe.
Speaker Change: Your commercial strategy with batteries.
Speaker Change: Is SaaS to take advantage of a reduction opportunities due to low marginal cost.
Speaker Change: Hours or if you think that you could add the cost of batteries to new PPA prices to do the full set of solutions.
Speaker Change: Okay.
Giuseppe Turchiarelli: Martín, I will pass over to Giuseppe and then to Simone. Okay. Well, uh... Talking about the concession, well, first of all, let me remind that the revoking of the process of the concession has not yet started. The, what's happening is that the myth of energy. TASP, the SEC, the superintendent with preparing a technical report on Enel Distribucion Conseil. and according to the authority this study could take between 6 and 18 months. As of today, I would like to point out that we have not received any notification or communication in this regard. And so, no administrative process is pending for the first forfeiture of any distribution electricity compensation.
Mark Franklin: Thank you Mark.
Speaker Change: <unk>.
Speaker Change: And does that and then Joe just the morning, Okay.
Speaker Change: Yes.
Speaker Change: Talking about the concession.
Speaker Change: First of all let me.
Speaker Change: <unk> remained debt.
Speaker Change: And the booking of the process of the conversation is not yet.
Speaker Change: What's happening is that the mix of Raymond James.
Speaker Change: The fact that the superintendent Sam.
Speaker Change: Preparing technical report on <unk>.
Speaker Change: Conversation.
Speaker Change: And according to the authority. This study could take between six and 18 months.
Speaker Change: Hum.
Speaker Change: <unk>.
Speaker Change:
Speaker Change: I would like to point out that we.
Speaker Change: We have not received any notification or communication and these are our guests.
Speaker Change: And so.
Speaker Change: Not many settings processes spending for the first forfeiture of any distribution.
Speaker Change: Conversation.
Speaker Change: And.
Giuseppe Turchiarelli: Under the local laws, the President of the Republic must declare the forfeiture of the electricity distribution concession. through an administrative act. and the SEC, the Superintendencia de Electricidad is mandated by law to carry out all necessary steps regarding the expiry of the operation. But again, it's really important. to underline that the law excludes the forfeiture of the electricity distribution concession in case of force majeure, duly verified by the superintendent. And as of today, We don't have, as I said, any further update.
Speaker Change: And then the local laws the president of the Republic must declared the first feature for feature of the electricity distribution concession.
Speaker Change: And at the MISO market.
Speaker Change: And the second the superintendents.
Speaker Change: The.
Speaker Change: Is mandated by law to carry out all the necessities that PARAGARD index fiery.
Speaker Change: I shall conversation.
Speaker Change: But.
Speaker Change: Again, it's still really important.
Speaker Change: On the line that the LOE excludes the forfeiture of the electricity distribution concession in case of force majeure.
Speaker Change: Julie verified by the Superintendency.
Speaker Change: And as of today.
Speaker Change: We don't have any.
Speaker Change: The update on that.
Speaker Change: Sure.
Speaker Change:
Giuseppe Turchiarelli: Talking about CapEx and the best, you know, the business model, I mean. The best. We used to have in terms of business model, let me remind you of the business model. First of all. As of today, we have two revenue streams in our business model, for the best. The first one is the energy shifting. So basically, we charge the best during the solar hour, and we discharge during the night. So we take advantage of the spread that we have in terms of prices. You probably know that in Chile, they are generating all the count, but specifically in the north, there is a very important balance between solar and non-solar hours.
Speaker Change: Talking about <unk>.
Speaker Change: And the best in the business model I mean.
Speaker Change: The best Sir.
Speaker Change: Yes.
Speaker Change: We used to waiver in terms of our business model, Let me remind you <unk> first of all.
Speaker Change: As of today, we have two revenue screaming our model for the bank. The first one is there any shifting so basically we charged debate during the sort of Iowa, and we discharge doing tonight. So we take advantage of that.
Speaker Change: Fred that we have in terms of pricing.
Speaker Change: You probably know that in Chile.
Speaker Change: They are.
Speaker Change: <unk>.
In giant old account about specifically and then also there is a very important.
Speaker Change: Violence between solar and.
Giuseppe Turchiarelli: And the second revenue stream for the best is the capacity payment. Capacity payment is foreseen by the regulation that guarantees a certain percentage of the revenue for the best. Let me think. In general, I would say that is around 30% capacity payment, 70% energy. and important point for what concerns the best is that this year is supposed to be issue a change in the regulation we hope is going to be issued by the end of this year probably in the middle we hope based on which there will be a new regulatory stream for the best, because they are going to be entitled to receive.
Speaker Change: And the second revenue stream for the best.
Speaker Change: Is the capacity payment capacity payment.
Speaker Change: Foreseen by the regulation that guarantees a certain percentage of the revenue for the base, Let me think.
Speaker Change: In Jan I will say that is around 30% of capacity payments 70%.
Speaker Change: And then just shifting.
Speaker Change: Important point for what concern the best.
Speaker Change: Is that the DCF is proposed to be sure.
Speaker Change: Any change in the regulation.
Speaker Change: But it is going to be issued by the end of this year.
Speaker Change: I don't know before.
Speaker Change: Based on which there will be a new regulatory stream for further base because theyre going to.
Speaker Change: Be entitled to receive.
Giuseppe Turchiarelli: and CELUIS services remuneration. I believe that the best business model is very, very good as of today in Chile. And by the way, the system requires this kind of technology, so everything is going well. Okay, thank you, Giuseppe.
Speaker Change: Ancillary services.
Speaker Change: Sure so.
Speaker Change: I believe that the <unk>.
Speaker Change: Yes.
Speaker Change: Business model.
Speaker Change: Very good that's all today in Chile, and by the way the system required the scandal technology. So.
Speaker Change: Going.
Speaker Change: The wet.
Speaker Change: Okay. Thank you just let me know.
Giuseppe Turchiarelli: Now, one on the, on the, sorry, Martin. Yes, go ahead. Just a small follow-up on that, while you share that arbitrage is currently the most important revenue stream, I was wondering if you have an estimate on how That could change with this ancillary service charge, if that will be relevant, close to arbitrage revenues, or what's your expectation there? Well, the Ancillary Services remuneration is a very good complement to the remuneration of the battery because of course there will be a moment during the year or in the following year in which The arbitrage is less confident than what we see right now, and having the three stages is a very good complement in order to guarantee the remuneration of the bank.
Speaker Change: Yes.
Speaker Change: Okay matching yes go ahead.
Speaker Change: Yes, just one small follow up on that.
Speaker Change: What are you sure that arbitrage is currently like for most important revenue stream.
Speaker Change: Wondering if you've kind of.
Speaker Change: I don't know on an estimate on how.
Speaker Change: That could change with Lisa to their service charge that will be relevant goes to arbitrage revenues.
Speaker Change: What's your expectation there.
Speaker Change: Yes.
Speaker Change: The ancillary services.
Speaker Change: It's a very good complement to the to the.
Speaker Change: Elimination of the battery because of course.
Speaker Change: There will be a moment during the year and the following hearing which.
Speaker Change: That arbitrage.
Speaker Change: Less confident in what we see right now in <unk>.
Speaker Change: Good complement.
Speaker Change: In order to guarantee the remuneration of the property.
Giuseppe Turchiarelli: Clearly it's not going to be a third, it's going to be a third remuneration, but not in the same moment. All right, thank you. Thank you.
Speaker Change: We're clearly not going to be a third.
Speaker Change: Going to be a third.
Speaker Change: Remuneration, but not in the same moment.
Speaker Change: Alright, thank you.
Simone Conticelli: And now on the carpet, we'll pass over to Simone. Hi, Martin, and thanks for the question. Talking about 2025 CAPEX, as we commented during the presentation on the plan, we are focused on obtaining the best means in terms of generation, just to reduce the cost of generation. So, we expect a very intense year in terms of CapEx. In general, we are going to invest something less than $800 million, and more or less $0.5 billion are related to development CapEx in new power plants. We are going to focus on three new BEST projects with a total of more or less 450 megawatts, this kind of BEST that Giuseppe described, hybrid projects.
Mark Franklin: Thank you and Mark on the capital vessel for Charles Good morning.
Speaker Change: Yeah.
Speaker Change: Hi, Mark and thanks for the question.
Speaker Change: Talking about 2025 Capex.
Speaker Change: As we commented during the presentation of the plan.
Speaker Change: We are focused on.
Speaker Change: Obtaining the best meets.
Speaker Change: In terms of generation loans, just to reduce the cost.
Speaker Change: <unk> genetics.
Speaker Change: So.
Speaker Change: I expect a very intense year in terms of Capex in general we are going to invest something less than 800 million.
Speaker Change: And.
Speaker Change: More or less Ddos five billions are related to development capex in new power plant.
Speaker Change: We are going to focus on new best project three best projects with the total of more or less 460 megawatts.
Just kind of bad debt.
Speaker Change: Describe.
Speaker Change: I bridge projects.
Speaker: The investments are more or less all in this year, in 2025, but the BEST will arrive at the beginning of next year, so improving our mix of production starting from 2025. Thank you, Simone. Operator, do we have more questions to the line? Thank you, Martin. Yes, we do, but as a reminder to get in the queue, simply press star 11. One moment for our next question.
Speaker Change: The investment.
Speaker Change: More or less all in D. C. I think 2025, but the best will arrive at beginning of next year so improving.
Speaker Change: Our mix of production starting from 2026.
Speaker Change: Thank you.
Speaker Change: My question is from the line. Thank you margin, yes, we do but as a reminder to get in the queue simply press Star 111.
Speaker Change: One moment for our next question.
Emanuele Ogioni: All right, it's from Emanuele Ogioni with Kepler. Please proceed. Good morning, everybody. Thank you for the presentation and taking my question. I have two left. One is on the regulatory framework. You mentioned in a very detailed slide the next steps expected. My question is related to your target of roughly US$150 million of BTA along the plan, basically yearly, in 2026-2027. If the current expectation based on the regulatory framework, the evolution of the regulatory framework, could confirm or not, or improve or not, the current targets included in the business plan. This is my first question.
Alright is from Emanuele <unk>.
Speaker Change: <unk> with Kepler. Please proceed.
Speaker Change: Hey, good morning, everybody. Thank you for the presentation and taking my question.
Speaker Change: I have two left one is on the regulatory framework.
Speaker Change: You mentioned in a very detailed slide.
Speaker Change: Next steps a spectator.
Speaker Change: My question is about are.
Speaker Change: Related to your target of roughly one Andrew that CFT.
Speaker Change: Dull.
Speaker Change: U S dollar of EBITDA for our two.
<unk>.
Speaker Change: Yeah.
Speaker Change: The plan basically early in 'twenty six 'twenty seven.
Speaker Change: The current expectation based on the <unk>.
Speaker Change: But I can reiterate framework of the evolution of the regulatory framework.
Speaker Change: Could confirm ora.
Speaker Change: Or not or improve or north of the.
Speaker Change: The current target, including the business plan. This is my first question and the second one is on the <unk>.
Giuseppe Turchiarelli: The second one is on the renewable side and the additional capacity. If you remind us the expected additional capacity in 2025, if there is some delay or something to flag. Thank you. Thank you very much, Giuseppe. OK. Well. Day. Enel Distribución Industrial Plan 2025-2027 has been made according to the view that we had at the end of the last year that is supposed to be confirmed in these preliminary A report that is going to be issued at the end of November by the consultant. So, everything is in line. There could be some smaller improvements that we are going to see in the next month, but I mean, it's really to see whether we are going to have any upside.
Speaker Change: Both sides of that the additional capacity for remind us of the.
Speaker Change: We expected our additional capacity in 'twenty five.
Speaker Change: If there is some delay.
Sandy: Sandy talked to to flag.
Speaker Change: Thank you.
Speaker Change: Thank you very much is that okay.
Speaker Change: They.
Speaker Change: And then D C will soon.
Speaker Change: Industrial Bank 2025, 2027 have been made.
Speaker Change: According to.
The view that we had at the Endo.
Speaker Change: Yeah that is.
Speaker Change: Supposed to be confirmed.
These are preliminary.
Speaker Change: No.
Speaker Change: Report that is going to be issued that ended on November by the consultant. So everything is in line.
Speaker Change: Yeah.
Speaker Change: There could be some.
Speaker Change: Smaller improvement that we're going to see the the next month.
Speaker Change: Sweet little to.
Speaker Change: To say, whether we're going to have any upside but.
Giuseppe Turchiarelli: The amount that we put in terms of VDA for distribution companies in line with the most conservative expectation that we have about the new regulatory size.
Speaker Change: The amount that we put in terms of EBITDA for distribution companies in line.
Speaker Change: They're.
Speaker Change: Mass set about the expectation that fab about.
Speaker Change: Regulatory cycle.
Simone Conticelli: And for what concerns the renewable capacity, you know, all the CAPEX, I will give you the floor to Simone, but all the CAPEX are Devoted for two capacities that is going to be in an operation next year, but more of this so talking About the capex and complementing about the capex the new project will involve the company basically not for the Larger part in the second half of 2025 And the the plant are expected to be to reach the CRD just in the first half of 2020. As of today, we don't see any specific reason for a delay.
Speaker Change: And for what concern the renewable capacity all the Capex I will give you the floor to Seymour and Boston all.
Speaker Change: All the Capex are.
Speaker Change:
Speaker Change: They voted four to capacity that is going to be in operation next year, but we want to be.
Speaker Change: So checking.
Speaker Change: Above the 5% complementing our budgeted capex.
Speaker Change: New project.
Speaker Change: Recall that the company basically.
Speaker Change: The larger part in the second.
Speaker Change: <unk> thousand five well.
Speaker Change: <unk>.
Speaker Change: The plans are expected to be.
Speaker Change: Yes.
Speaker Change: So each day just in the start of the contract.
Speaker Change: As of.
Speaker Change: Today, we don't see any specific reasons for that.
Simone Conticelli: In any case, the impact of these plans, I want to highlight that are not for this year. It will improve the EBITDA for 2026. Thank you. Thank you, Emanuele. Thank you, Simone.
Speaker Change: A delay in any case.
Speaker Change: The impact of these plans I want to highlight that.
Speaker Change: <unk>.
Speaker Change: Four Dcs.
Speaker Change: Improved EBITDA for 2020.
Speaker Change: Slide 26.
Speaker Change: Thank you.
Speaker Change: Thank you.
Speaker Change: Thank you good morning.
Speaker: Operator, if you don't have more questions on from the line, I go to the to the chat questions that we received. We received several questions. So, a lot of the questions coming from the outages from Chile from last February 25. So, we received questions related to it from Francisco Paz, Santander, Andrew McCartney, Larrin Vial, Fernan Gonzalez, VTG. So, the questions are all more or less all the same.
Speaker Change: Nathan if you don't have more question comes from the line of go to the questions that we received several questions.
Speaker Change: So a lot of the questions coming from the outages.
Speaker Change: From Chile from last February 25, still receive your question related to withdraw Francisco five something that MGM Mccartney levering beyond that none of those tablet.
Speaker Change: <unk>.
Speaker Change: So the questions.
Giuseppe Turchiarelli: So, I will read one of these. Regarding the massive power outages in Chile, the Minister of Energy put Enel Chile as one of the companies pointing out in the problem. In this case, for the delay in connecting some power plants in the system in order to establish the electricity service in the country. In particular, the hydropower plant Rappel. Do you think you can see fines for the delay in connecting your plant? How long did it take to activate the plant versus what was requested from the authorities? And now, we also received questions about the potential impact on the distribution business related to the blackout.
Sure.
Speaker Change: More or less the same okay. So when we read one update regarding the massive power outages in Chile.
Speaker Change: And then the minister of energy both Enel, Chile is one of the company 40 now seen the problem in this case for the delaying connected some power plant in this destocking in learning to establish daily placed into service in the country.
Speaker Change: But equally the hydropower plant Rockville do you've seen.
Speaker Change: You can define as further delaying connecting your plan how long did it take to activate the plan.
Speaker Change: What was requested from the authority.
Speaker Change: And now so we also received questions about the potential impact on the <unk>.
Speaker Change: In addition business related to the blackout. So we should see an impact on the distribution as well so just happened okay. So.
Giuseppe Turchiarelli: So, if you see any impact on the distribution as well.
Giuseppe Turchiarelli: So, Giuseppe? Okay. So, in response to the failure of the national electric system, Enel Generazione, Enel Green Power immediately mobilized all its teams, procedures and protocols to control and restore the operation of generators across the country. Specifically for what concerns one of our planes, Rappel, a high-powered plane, which had several attempts to connect to the nationalistic system, we emphasize that there was no technical unavailability of the plane. external factor on condition that prevented the regular startup. are being analyzed. Enel team immediately mobilized all teams, procedures, protocols to control and restore the operation. for all the county.
Speaker Change: So in.
Speaker Change: In response to the failure.
Speaker Change: The national.
Speaker Change: System.
Speaker Change: And then kind of sooner and then get them up and Green power immediately mobilized all its theme so procedure and protocol to control and restored the operation of generator across the county.
Speaker Change: Specifically for what concern one of our planes that are paid.
Speaker Change: Our friend.
Speaker Change: <unk> had saved.
Speaker Change: Several of themes to connect to the nationalistic system.
Speaker Change: Emphasize there was no technical unavailability of the plan.
Speaker Change: External factor on Kona.
Speaker Change: Condition that prevented the regular desktop.
Speaker Change: Are being analyzed.
Speaker Change: Additionally.
Speaker Change: And then the team immediately mobilized all teams see the protocol to controlling we started operation.
Giuseppe Turchiarelli: In particular, our generation control room center was operational for corresponding communication with the national elective corps. And we'll talk about, I saw other questions, we'll talk about the possible findings, as I said before. Too soon to foresee any impact related to it, the incident is under investigation by the system operator and there are a lot of issues regarding the system operation that must be clarified before assigning any accountability to any company. As I said before, you know, distribution is not involved in terms of responsibility. Actually, we made a lot of effort in order to restore the electricity to the final customer, but not taking any kind of responsibility.
Speaker Change: All of the county.
Speaker Change: In particular, our duration control room center was operational for corresponding communication with the commission.
Speaker Change: Accordingly.
Speaker Change: And I'm talking about.
Speaker Change: Other places.
Speaker Change: About the possible fine as I said before.
Speaker Change: Too soon to foreseen any impact related to the incident is under investigation by the system operator.
Speaker Change: A lot of issues.
Speaker Change: Regarding the see some inflation that must be clarified before assigning any accountability to any company.
Speaker Change: And on distribution you have as I said before.
Speaker Change: This emotion is nothing bulk in terms of responsibility.
Speaker Change: And actually we made a lot of effort in order to restore the <unk> two.
Speaker Change: The final cost but.
Speaker Change: And not saving any kind of responsibility. We don't believe there will be any kind of liability for.
Giuseppe Turchiarelli: We don't believe there will be any kind of liability for the company.
Speaker: Okay, thank you, Giuseppe.
Speaker Change: Okay. Thank you just happened now changing the subject.
Simone Conticelli: Now, changing the subject, we received some questions on the extraordinary effect, the one-off effect on the functional currency. So, questions coming also from Francisco Paz-Santander, Edward Rutschen from HSBC. So, regarding the change of currency and the reporting of results going forward, we will see any additional adjustments to the one observed in Enel Generación in the next period. Also, please, could you give further details on the effect, on the effect, no, changing the functional currency to USD? What are the mechanisms behind this move?
Speaker Change: Some questions on the sour Denari effect, the one off effect on the functional currency so questions coming out from from Francisco <unk> from HSBC.
Speaker Change: So regarding the change of coring thing the reporting of results going forward.
Speaker Change: Any ambition on Jetman. So the one I'm sorry, Ian now handed out John in the next year at.
Speaker Change: Also please could you give further details on the impact on the fact now changed the function I am sorry.
Speaker Change: <unk> D. What are the mechanism behind this move.
Simone Conticelli: Simone? Okay. So, thanks for the question. I will give some detail about this change of... First of all, highlighting that given the International Financial Report's standards, the change of currency is not like a choice of the management, it's something that we have to do. I mean, what I have to say is that the currency should reflect the relevant transaction event and condition. So, what happened between 2024 and 2025 to the three companies that changed their currency? It's important starting from Enel Generacion because the impact on Enel Chile is related to the change in Enel Generacion.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: So.
Speaker Change: Thanks for the question.
Speaker Change: Give us some detail about these change a comment.
Speaker Change: First of all.
Speaker Change: Highlighting that given the international financial reporting standards.
Speaker Change: A change of currency is not like a choice of the management is something that we have to do.
Speaker Change: In that.
Speaker Change: Yes.
Speaker Change: Say that the currency should reflect relevant transaction event a condition.
Speaker Change: Sure.
Speaker Change: What happened between.
Between 2024.
Speaker Change: In 2025 to three companies that change of their currency its important starting from.
Speaker Change: Sean coolers.
Speaker Change: Of course, the impact on <unk>.
Speaker Change: Chile is related to a changing energy patch here.
Simone Conticelli: Enel Creación Chile has two main forms of revenues and flows. One are the regulated costs. And the other one is the contact on a stream map. Differs the regulated contracts. are exposed to the exchange rate between the U.S. dollar and the CLP. On the other side, the three contracts are strictly linked to the US dollar. So which was the trigger for the change? On one side, the regulated contract volume decreased at the end of 2024, caused some old bids from the past to expire. On the other side, linked to our policy to keep on selling on the free market, we increased the volume in the free market.
Speaker Change: And then essentially US two main forms of revenue some flows one update <unk> contracts and the other one is the contract on this trademark differs regulated contracts.
Paul: And as Paul said.
Speaker Change: Two the exchange rate.
Speaker Change: Among or between the U S dollar.
Speaker Change: Sure.
Speaker Change: On the other side the three contracts are three trillion U S.
Speaker Change: So which was the trigger for the change.
Speaker Change: On one side the date.
Speaker Change: I think related contract volume.
Speaker Change: At the end of 2024 core some all the beat from the past.
Speaker Change: Expired.
Speaker Change: On the other side.
Speaker Change: A link to our policy to keep on selling on the free market, we increase the volume and the free market contracts and so as a result.
Simone Conticelli: And so, as a result, the volume for 2025 is now higher, looking at the free market content. And this is the reason why we had to change the currency. Talking briefly about Pevence, it's similar, Pevence had in the past, until 2024, a contract that was a big contract with the same conditions as the regulators' contracts, and now changed a little bit their strategy because it's going to sell energy to spot price, and these kinds of contracts are basically strictly linked to the U.S. Talking about Enel Chile. Enel Chile received the dividends from its affiliate company and so the change in Enel Creación Chile changed the flow and so we had to change also in Enel Chile and this is the story.
Speaker Change: The volume for 2025.
Speaker Change: Hi, yet looking at the free market.
Speaker Change: And this is the reason why we ask.
Speaker Change: Change the coverage.
Speaker Change: Looking briefly about when chip see me.
Speaker Change: And in the past 2024 contract.
Speaker Change: It was a big contract that same condition as acknowledged contracts and now changed a bit.
Speaker Change: <unk> is going to sell energy to spot price.
Speaker Change: And the this kind of contract basically stick to link it into U S dollars.
Speaker Change: Talking about annual Chile.
Speaker Change: And then Chile received dividends from is.
Speaker Change: I forget company and so the change in our Catherine Chile change.
Speaker Change: And so we had to.
Speaker Change: To change also in energy and did you said that the stock now they impacted.
Simone Conticelli: Now the impact. Until 2024, we had to make some reserves related to exchange rate risks, because to wedge this exchange rate, we denominated some liability in dollar. And following the IFRS principle, we had to create this reserve that was negative reserve, given the trend of the exchange. In the moment in which, in the last quarter of 2024, we decide to change the currency, in this very moment we have to discontinue this kind of activities. And so take this reserve and bring them to the PNL. And this is the impact that you see in the PNL at the level of EBITDA, at the level of NET-E.
Speaker Change: Until 2024.
Speaker Change: To.
Speaker Change: Make some reserve.
Speaker Change: Related to <unk>.
Speaker Change: S exchange rate risks.
Speaker Change: Of course of course.
Speaker Change: Wage.
Speaker Change: This exchange rate they don't mean it some.
Speaker Change: <unk> ability in dollar and following the yes I guess.
Speaker Change: S, bringing simple yet create issues et cetera that was negative.
Speaker Change: Given the trend of the exchange rate.
Speaker Change: In the moment in which in the last quarter of 2024, we decide to change it.
Speaker Change: The competency in this very moment, we have to discontinue is kind of activities and so take this out of and.
Speaker Change: Bring.
Damage to the P&L and this is the impact that you see in the P&L level of EBITDA.
Speaker Change: Net income.
Simone Conticelli: And finally, to finally answer the question, all the changes were recorded on 2024 and so we will not have any other impact starting from 2024.
Speaker Change: And finally, the final answer the question or not.
Speaker Change: All the changes were.
What are the unprofessional plentiful and so we will not add any other impact starting from 2005.
Simone Conticelli: Thank you, Simone.
Speaker Change: Okay.
Giuseppe Turchiarelli: So, moving on to the questions. Now we have a question in terms of the gas trading. So the following question is coming from Andrew McCartney, Larry Ziao, and also Andres Navarrete from BTG. So the question is, where and when do you see the most likely gas commercialization opportunities this year? And could you give us some color regarding the gas contracts from Argentina, size, price range, take or pay agreement?
Speaker Change: Thank you Sam morning.
Speaker Change: Moving on to the question.
Speaker Change: Now we have question in terms of.
Uh huh.
Speaker Change: The gas trading not so the following question is coming from Andrew Mok gardening lotteries Yao.
Speaker Change: Now some brief novara from BTG so.
Speaker Change: Good question.
Speaker Change: Where and when do you see the most like.
Speaker Change: Well.
Speaker Change: Well, Mr realization opportunities this year.
Speaker Change: And could you give us some color regarding the gas contract, so Argentina size price range take or pay agreement and now so why you there'll be an extraordinary shareholder meeting on April.
Giuseppe Turchiarelli: And also, why you there be an extraordinary shareholder meeting on April and end of April for Enel Chile? Okay. So, during February, we have already traded a star-plus volume for 2025, around 6 TBTU. taking advantage of the current masking conditions. and we are always looking for new opportunities to improve our financial results. This trading opportunity was already included in our guidance figures. However, at the moment, we cannot share more detailed information due to the confidential, commercial and strategical nature of these operations. About Argentinian gas, we have contracted about 30 Tbtu distributed in the year 2025.
Speaker Change: And then the operator for today.
Speaker Change: Okay.
Speaker Change: So.
Speaker Change: During February we have already traded.
Speaker Change: Dara plus volume for 2025.
Speaker Change: Around six.
Speaker Change: With you.
Speaker Change: Taking advantage of the current master condition.
Speaker Change: And we are always looking for new opportunities to improve our financial results.
Speaker Change: These trading opportunity was already included in our guidance figures.
Speaker Change: At the moment.
Speaker Change: We cannot share more detailed information due to the confidential information or strategic in nature of these operations.
Speaker Change: About Argentina and gas we have contracted.
Speaker Change: <unk>.
Speaker Change: 30, Tera Btu distributes in 'twenty.
Giuseppe Turchiarelli: with a competitive price lower than G&L price. Due to competitiveness, what I can say is that it's lower than 2024 prices of $8.00.
2025.
Speaker Change: Yeah.
Speaker Change: Competitive price lower than June.
Speaker Change: <unk>.
Speaker Change: G L.
Speaker Change: Mrs.
Speaker Change: Okay.
Speaker Change: Due to competitiveness, what I can say and that is lower than 2020 for prices of eight.
Speaker Change: U S dollar.
Speaker Change: 7 million.
Speaker Change: <unk>.
Giuseppe Turchiarelli: Extraordinary meeting, an extraordinary shoulder meeting will be held to amend the bylaw in order to reflect the new function on currency. Changing the capital currently expressed in pesos to move to dollars. To implement the function and currency changes. From a statutory perspective, it is necessary to amend the companies by law to re-denominate the shared capital from Chilean employers.
Externally meeting.
Speaker Change: And then maybe shareholder meeting will be held.
Speaker Change: To amend the bylaws in order to reflect the new functional currency.
Speaker Change: Changing the capital current currently expressing in pesos to move to dollar.
Speaker Change: To implement the functional currency currency changes.
Speaker Change: From.
Speaker Change: Two three.
Speaker Change: Steve.
Speaker Change: It is necessary to them and the company below two.
Speaker Change: They know many.
Speaker Change: Capital from China.
Giuseppe Turchiarelli: Okay, thank you Giuseppe.
Speaker Change: Okay. Thank you.
Giuseppe Turchiarelli: So, moving on the questions, we have questions coming from Fernan Gonzalez from BTG and also Felipe Torres from ICP Capital. The first one is about the fines. So, if the $20 million fines were already booked in 2024 numbers, then Fernan has some questions regarding distribution. What makes you think that the debate around the distribution reform can begin in March? The minister has said that some of your... this has already been said. Then he's asking about if our plans in terms of a strategic plan, the guidance in CAPEX and also EBITDA would be changed considering the last updates in terms of the distribution segment.
Speaker Change: So moving on the questions we have questions coming from.
Speaker Change: Mango salad from.
Speaker Change: From BTG.
Speaker Change: And now so it's all I see so the first one is about the fine.
Speaker Change: $20 million fine were already booked in 2024 numbers.
Speaker Change: And then now have some questions regarding Shannon.
Speaker Change: Shannon.
Speaker Change: What made.
Speaker Change: You think that the debates around edition, we form can begin in March.
Speaker Change: The Minister has said that some of your one of this is already happening.
Ed.
Speaker Change: And.
Speaker Change: Then he is asking about if our land in terms of our strategic plan and the guidance in Capex and now so EBITDA would be changed considering the last update in terms of the distribution segment and now so we will keep our plan to reinvest the free cash flow in the distribution.
Giuseppe Turchiarelli: And also if we'll keep our plan to invest the free cash flow in the distribution segment in this period or if we're seeing any change to regulatory restrictions. Okay, well, first of all, as I said in the presentation, all the fines, all the other extraordinary items like the compensation to the client are already booked. in the closing 2024. As I said in the past, the distribution business is very important for our strategy. We believe that there is a lot of value in the company, so we confirm our... topics in our strategy in this segment. There is no reason, as of today, to change our strategic plan for what concerns the distribution company.
Spirit: My name is spirit or.
Speaker Change: If we're seeing any change.
Speaker Change: Starting with fiction.
Speaker Change: Okay.
Speaker Change: First of all as I said in the presentation of all the.
Speaker Change: Defines old.
Speaker Change: Other items.
Speaker Change: Things like the compensation to the clients are already booked.
Speaker Change: And then the closing.
Speaker Change: Before.
Speaker Change:
Speaker Change: As I said in the past with the distribution business is very important but I was.
Speaker Change: The strategy, we believe that there is a lot of data in the company. So we confirm our.
Speaker Change: Yeah.
Speaker Change: Capex in our strategy in this segment.
Speaker Change: There is no reason.
Speaker Change: As of today to change our strategic plan or.
Speaker Change: For what concern the distribution company so.
Giuseppe Turchiarelli: We are focused to spend most part of our cash flow in order to improve our grids in terms of resilience and quality.
We are focused to to spend.
Speaker Change: Most part of our cash flow in order to improve our.
Gary: Gary in terms of resilience.
Speaker Change: Got it.
Giuseppe Turchiarelli: Okay, thank you Giuseppe.
Speaker Change: Okay. Thank you just wanted to just.
Simone Conticelli: Simone, just another question, Sammy, regarding the CAPEX and EBITDA foreign distribution. We have already said but just to complement according to the guidance that we gave to the market. Yes, so we can confirm the guidance given to the market. You have seen that we expect an increase in terms of EBITDA in 2025 compared to 2024 and the reason of this delta is mainly related to the very negative impact of the climate event of 2024 that amounted to more than $60 million impact. On the other side, as you know, the evolution of the regulation is giving us a little bit more space and so these are the two reasons.
Speaker Change: Another question for me regarding the profit and EBITDA quarter in distribution, we have already said, but just to complement according to the guidance that we gave to the market yet. So we can confirm that got it there mark.
Speaker Change: You have seen that we expect an increase in Panama City Beach.
Speaker Change: In 2025.
Speaker Change: Back to 2024, and there is one piece.
Speaker Change: That is mainly related today, where the negative impact of the climate event.
Speaker Change: For amount controller.
Speaker Change: And more than $60 million.
Speaker Change: <unk> impact on <unk>.
Speaker Change: The other side as you know.
Speaker Change: Evolution.
Speaker Change: The regular or the regulation is giving us more space and so is up there too.
Simone Conticelli: This plan, in our opinion, as of today is quite solid and so can be confirmed.
Speaker Change: This plan in our opinion as of today is quite solid there can be confirmed.
Simone Conticelli: Thank you, Simone. Thank you, Giuseppe.
Speaker Change: Okay.
Speaker Change: Thank you good morning, Thank you just that thanks.
Speaker: Just checking if there is any more questions.
Speaker Change: Just checking if there is any more question, we do not have any more question.
Speaker: As we do not have any more questions, I conclude the results conference call. Let me remind you that the investor relations team is available for any doubts that you may have. Many thanks for your attention, and see you soon.
Speaker Change: To conclude the results conference call, let me remind you that Investor relations team is available for any doubts that you may have.
Speaker Change: Many thanks for your attention and see you soon bye bye.
Speaker: Bye-bye.
Speaker: And thank you all for participating, and you may now disconnect.
Speaker Change: And thank you all for participating and you may now disconnect.
Music
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].