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Edited Transcript of ISA.BG earnings conference call or presentation 7-Nov-19 2:30pm GMT

Q3 2019 Interconnection Electric SA ESP Earnings Call

Medellin Nov 8, 2019 (Thomson StreetEvents) -- Edited Transcript of Interconnection Electric SA ESP earnings conference call or presentation Thursday, November 7, 2019 at 2:30:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Bernardo Vargas Gibsone

Interconexión Eléctrica S.A. E.S.P. - CEO

* Carolina Botero Londoño

Interconexión Eléctrica S.A. E.S.P. - CFO

* Gloria Cecilia Velasquez Trujillo

Interconexión Eléctrica S.A. E.S.P. - IR Officer

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Conference Call Participants

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* Andres Moncada Lopez

Banco BTG Pactual S.A., Research Division - Research Analyst

* Diego Alexander Buitrago Aguilar

Bancolombia S.A., Research Division - Energy and Gas Analyst

* Iván Galvez

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Presentation

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Operator [1]

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Good morning, and welcome to the conference of the Third Quarter of 2019 of ISA. My name is Isda, and I will be the operator today. (Operator Instructions). I now transfer the call to Mr. -- Mrs. Gloria Velásquez. Please.

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Gloria Cecilia Velasquez Trujillo, Interconexión Eléctrica S.A. E.S.P. - IR Officer [2]

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Welcome to the presentation of the 2019 third quarter results. We have with us today Mr. Bernardo Vargas Gibsone, ISA's CEO; Carolina Botero Londoño, Chief Financial Officer; Olga Patricia Castaño, Chief Strategy Officer; and [Baron Olego], Head of Energy Commission Corporate projects. They will present ISA's results and then address any questions you may have.

Recordings for this conference in English and Spanish will be available starting tomorrow in our website at www.isa.com. Please refer to the cautionary note for the forward-looking statements before making any investment decision with regards to ISA.

Mr. President, please go ahead.

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Bernardo Vargas Gibsone, Interconexión Eléctrica S.A. E.S.P. - CEO [3]

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Thank you, Gloria. Good morning to everyone, and welcome to the presentation of the results for the third quarter of 2019. It's a real pleasure for me to be here with you today.

Let's start with the Slide 3 by reviewing the relevant events of the period. I want to start this presentation with great news for ISA.

Two weeks ago, we announced the acquisition of our first road concession asset in Colombia, a goal that we set this year, which is an important step towards the materialization of our 2030 strategy, for which we want to be relevant stakeholders of the road sector not only in Chile, but also in Colombia and Peru. And maybe one -- as we have stated.

Therefore, we signed a share purchase agreement for 100% of the shares of the Cartagena-Barranquilla coastal concession which, besides connecting these 2 important cities, is part of the most important international trade and tourism corridor in Northern Colombia. I will summarize some relevant details of this business, which has been widely covered in the national and international media.

This concession spans 146 kilometers and comprises 2 branches. The first goes from Cartagena to Barranquilla with 110 kilometers, and the second is Circunvalar de la Prosperidad, located between Malambo and Barranquilla with 36 kilometers and double lanes. The work includes the grand Manglar viaduct, which crosses the virgin wetlands and was built using top-down technology, which is a landmark in the Colombian road sector, as it included the -- it's a very important milestone in the matter of construction because it has to do with the protection of the environment.

This construction included 100% recyclable elements, LED, solar energy, lightning and a water treatment system, which prevents water that's not supposed to be there -- drops there.

This also required a mounting field. The parts of the viaduct work, which are mounted as the technology says, that's why it's called top-down. This work has received 2 awards, the National Engineering Award and the National Environmental Award. This is a milestone because of the way it was constructed and the way the environment was protected.

In this concession, ISA invested approximately COP 500 billion, which will add COP 2.2 trillion to its assets. For 2020, when this business is closed, revenues are estimated -- additional COP 454 billion and EBITDA at COP 231 billion. After incorporating this concession, the operation revenue, the road business, would contribute with 23% of the operating revenues and 18% of its group consolidated EBITDA. The transaction will close once the authorizations from the National Infrastructure Agency, insurance companies and funding entities of the concessions have been obtained, for which have a period of 6 months.

With the entry into the road business in Colombia, we bring our experience from Chile as the largest inter-urban road operator as well as we were recognized FX, transparency and best practices in a corporate governance.

Plus, we are being totally consistent with whatever we've been announcing, so this deserves the trust of you, the investors.

I would also like to highlight the projects of the energy transmission projects that entered into operation during this quarter. In Colombia, in September, the San Antonio 230,000-volt substation and associated transmission lines initiated operations. These are located in the Department of Boyaca. This included the expansion of a Sochagota substation and the 30.5 kilometers double circuit line.

The San Antonio substation has been built with GIS equipment or a capsule substation, which is a cutting-edge technology, the key feature of which is less space requirements to place the equipment, offering better reliability and safety conditions to these substation.

Furthermore, the development of this line involved a tremendous challenge in terms of the building management due to the high number of easements that had to be negotiated. 390 along the 30.5 kilometers of the line. With the entry into operation of this line and the substation, ISA ratifies its commitment to improving the energy transmission services in the country.

In Brazil, the IEITAPURA concession also started operations. This project consists of installing a 440,000-volt static compensator at the Bauru substation in São Paulo. The installation of this equipment guarantees benefits for the National Interconnected System, especially regarding the control of voltage in this state's grid. So far this year, 6 energy transmission projects have started operations, which bring revenues of $54 million per year. These projects, which add circuits along 662 kilometers to the existing grid, are located in Chile, Colombia, Brazil and Peru.

On Slide 5, we highlight the recognitions. This year, once again, our sustainability, good governance and transparency practices have been widely recognized. In this regard, I am pleased to reiterate that ISA holds one of the most relevant sustainability indices in the world.

In September, for the fifth consecutive year, ISA, after a very detailed diligence by the team of auditors, ISA was included one more time as a member of the Dow Jones Sustainability Index as 1 of the 3 Latin American companies in the energy utilities category, and got the highest scores regarding materiality, information privacy and corporate citizenship.

ISA was also included, once more, for the third time, in the FTSE for Good index in London. In addition, as a consequence of this, America Economia Magazine, one of the most read and influential magazines in the region, included ISA as the first energy company and the second company with the best results in the 100 multi-latin companies ranking.

Likewise, for the sixth consecutive year, we received the IR Issuer Recognition from the Colombian Stock Exchange as CEO that promotes the best practices of information disclosure and strengthening in Investor Relations.

Slide 6. This highlights the good results achieved by ISA so far in 2019 compared with the same period of the previous year. We have to highlight these good results that ISA achieved as of this third quarter.

As you can see, there are significant increases compared with the first 9 months of 2018. There are relevant increases. Results are mainly explained by the projects that have started operations, construction efficiencies from the optimization of CapEx and timelines, in addition to good management of costs and expenses. This is a permanent effort by this group, and we have a dedicated, good management of these costs and expenses. These are the responsible teams are one of the best in the team in the energy transmission business. As an indicator of the company's strength and focus on profitability is well represented there. And therefore, our ROI, the return on equity, reached 14.2% during the first 9 months of the year. That's a double-digit increase over last year. But we have to remember that 4 years ago, we were in single digits.

Now I'm going to give the floor to Carolina Botero to explain in more details these results, the financials.

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Carolina Botero Londoño, Interconexión Eléctrica S.A. E.S.P. - CFO [4]

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Bernardo, thank you very much. Good morning, everyone. I am very happy to be here with you again this morning.

Let's go to Slide 7. Before I continue, I would like to recap 2 points that will make it easier for us to understand the results for this quarter, and the accumulated benefits results for 2019. The first point has to highlight is the implementation of the Contractual Asset methodology in the concessions in Brazil, which had a positive impact on results of the quarter for COP 43 billion, an impact on the cumulative amount of COP 99 billion, which originate from efficiencies achieved in the construction projects at ISA CTEEP and its subsidiaries.

The second point, which is very relevant, is the inflation adjustment of the tariff cycle in Brazil, which from the third quarter of 2018, began to be recognized on a monthly basis which meant that this quarter, we would include revenue, adjustments for 15 months, while the third quarter of 2019 only includes 3 months.

Let's go to Slide 8 to review revenues that totaled, as of September, COP 5.9 trillion, 15.4% more than in 2018. As you can see in the graph, the changes include an increase in construction dynamics and efficiencies achieved in Brazil. As we said before, higher revenues from new projects in Colombia, Brazil, Peru and Chile from September 2018 to this quarter.

Our remuneration adjustment for 2018 at ISA INTERCHILE, lower revenues from the RBSE and the inflation adjustment of tariff cycle in Brazil in 2019, extraordinary income from the recovery of the equity tax in Colombia in 2018, without which the growth would have been 16.8%. Finally, the exchange rate effect increases revenues.

Let's go to Slide 9. We're going to talk about the AOM.

ISA has made it a permanent mission to capture efficiencies in the AOM to maintain the profitability of the company in a highly competitive environment and in the face of a possible scenario of more restricted changes in tariff regulation in Brazil and Colombia.

To this end, we are developing several initiatives related to the control of AOM expenses, emphasizing a, the management; also the definition and monitoring of company productivity indicators; and the implementation of a new cost model based on the life cycle of the asset, which consists of the construction, management, operation, maintenance, and final disposal of the asset.

So we can see in the graph for the January-September period, the AUM totaled COP 2 trillion, 17.5% more than in the same period last year.

How do we explain this change? We performed more construction activities, new projects entered into operation but originally in this period, we conducted studies associated with the growth of the company, which already began to show the fruits with the coastal concession as well as commission expenses for a successful judicial process in Brazil. Excluding these items, growth in AOM was 15.2%, below the 15.4% increase in revenues explained before.

Let's go to Slide 10, where we talk about the EBITDA.

As you can see, EBITDA accumulated as of September showed a growth of 14.3%, mainly as a result of the entry into operation of new projects and the recognition of construction efficiencies in Brazil. EBITDA margin for the cumulative period was 66.2%. Excluding construction, it would have been 71.6%.

Let's move on to Slide 11. Here, we can see the consolidated net income which, so far in 2019, has amounted to COP 1.2 trillion. This means an increase of 27.1% versus the same period last year and a net margin of 20%.

This higher net income reflects a higher EBITDA for the period already explained, lower revenues from the equity method considering the lower inflation adjustment of the 2019 tariff cycle, and higher financial expenses as a result of the increase in debt to support the growth of the group.

Now this is very important. When we compare 2018 to 2019, it's important to note that a large portion of the net income comes from the companies in which ISA has a 100% stake. For example, in the third quarter of 2018, Brazil contributed 49% and Chile, 16% which in the same period in 2019, Brazil represented 33% and Chile, 24%.

Let's take a look at the balance sheet on Slide 12. The assets of ISA and its companies at the end of September reached COP 48.2 trillion, 7.3% more than at the end of 2018. This is the result of the company's growth through new projects in Colombia, Peru, Chile and Brazil.

Compared to December 2018, liabilities increased by 8.7% basically due to reincurring debt to support projects under construction and the second share of dividends to be paid in December 2019. Higher profits and the effect of the devaluation of the Colombian peso against the U.S. dollar and the Chilean peso explained the increase in equity.

On the Slide 13, we can see the behavior of the ROE, which as Bernardo announced in September, reached 14.2%. The growing performance of the ROE in the last 5 years is based mainly on the efficient operation of the company.

As you can observe in the gray bar, where operating ROE increased by 300 basis points from 8.9% in 2015 to 8 -- to 11.9% as of September 2019.

Let's go to Slide 14 to see the debt. As of September, the consolidated financial debt closed at COP 18.6 trillion, about 6% higher than in 2018, leveraging the group's growth. The exchange rate effect alone, derived from the devaluation of the Colombian peso versus the U.S. dollar and Chilean peso, increased the balance by COP 518 billion without which the growth would have been 3%. The net debt EBITDA indicator shows the financial solidity of the company and the space to absorb the expected growth. It went from 3.03x in December 2018 to 2.72x in September 2019. Interest coverage reached 6.17x, which demonstrates the strength of ISA.

Let's go to Slide 15. The 2019/2023 investment plan included -- we made an adjustment because we included the payment of the Cartagena-Baranquilla Coastal concession. The investment commitments for this period remained at $3,991 million distributed as shown in the graphs to the right side of the slide. CapEx is concentrated in Colombia, Chile, Brazil and Peru, in the energy and road business units. In the distribution by business, we highlight the change in roads going from 22.5% to 28%.

In conclusion, ISA's financial results reflect a right business decisions and discipline in the search for greater efficiency in operations. But above all, our iron will to generate sustainable value for investors.

And with that, I conclude the presentation. Now we invite you to the start of the Q&A session.

Operator, you may proceed. Thank you.

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Questions and Answers

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Operator [1]

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(Operator Instructions) We have a question from Diego Buitrago from Bancolombia.

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Diego Alexander Buitrago Aguilar, Bancolombia S.A., Research Division - Energy and Gas Analyst [2]

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For in particular, I would like to ask about the highlights, about the Slide 13 where we can see the evolution of the ROE in a very detailed -- and I want to make sure that I understand the results of the company. I think it was very clear.

I have 2 questions.

Yesterday, there was a news in the media related to some privatization of Electrogas, which is a -- I would like to know if ISA might have some interest. Can you tell us about what happened in -- from December, there was some initiatives in some of these projects. So how might the company be involved in this?

And my other questions has to do with the coastal concession. It's a comparison, the pros and cons compared to what you have in Chile. And we understand that this concession has a very operational advantages. Can you expand on this? I would really appreciate that.

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Unidentified Company Representative, [3]

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Okay, about the Electrogas. From the -- when the government entered this, they announced the sale of different assets. The one they're most interested in, the one that you mentioned, which is also on the table, it might be dilute and go with the liabilities. ISA doesn't -- is not interested in this, and so we can have control over Electrogas.

This investment, we will have to be betting on many horses on a country. I don't think this is something we would be interested on the first instance. But if this was based on assets, we would be potentially interested in this project in Brazil, because as we have stated, this is one of our important growth goals in the region. And of course, from several months ago, we have been studying details.

The -- in December, there was an auction and we were interested in different lots and we suspect to be more successful this year than in 2018. This has to do with how difficult it is to adapt to the concept of risk and this has gone up and down in Brazil the last -- as a scale. There's a lot of variation. So it's difficult to calculate what is the profitability that you are betting on. But we are dedicated to examining this and hopefully, we can do well.

Look, sometimes, when we achieve milestones, by the company, we're economy, we don't like to boast about this, but this Costera is the crown -- the jewel of the crown. As you said, we have -- the majority of the Colombian projects don't have -- the potential of the coastline has enormous potential, not only from many points of view. It has been built by the best engineering systems by a top-level team. So this was difficult to find.

Oh, and there is something else. We like assets to be finished and it is only finished at a 2%. So we think this would be the jewels of the crown. And having reached an agreement to acquire this concession is a milestone, very important for us. And it also reflects our consistency, with our commitment with investors.

We do what we say and sometimes, we would like to speed up things, but what we achieve, what we say, sooner or later, and this is something important.

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Operator [4]

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(Operator Instructions) Next question is from Iván Galvez from Credicorp Capital

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Iván Galvez, [5]

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I have 2 questions. The first one is related to the revenues and costs. You mentioned that the cost have increased because the investments in projects, but particularly in the third quarter more than in the previous 9 months. Why has this happened? Could you be more detail?

And then the management costs. Can you say why this semester those have fallen year-over-year and if this is something sustainable?

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Unidentified Company Representative, [6]

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Thank you, Iván, for your questions.

Basically, regarding the costs of the third quarter, well, this is due to the 2 aspects that we highlighted, the payment of a commitment that we have made, we have to pay the attorneys that were working for us in a project that we thought was lost in Brazil. And another -- the second point, the costs were increased because we were incurring in many easements to drive the growth of the company. As you know, the 2030 strategy comprises growth companies. We are shooting for a 70% growth in EBITDA that will be achieved by investments of $2.5 billion. So this has to be supported by technical studies, by attorneys.

But as we announced, we are starting to see results as to the goals that we've set for us. And we had to enter the road concessions business in Colombia and we achieved this. But yes, this has been incurred, cost -- in technical cost, in studies, lawyers, attorneys. So all of these increased the costs, and they were bigger than the revenues. But it's not something we can -- not -- that we can ignore. And now we have been into -- enter into operation in all the countries that we operate in, and particularly the projects in Brazil. So to answer to your concern about the growth in expenses in the third quarter in particular compared to the rest of the year, this is -- this has to do with the AOM initiative to accompany this growth pertaining our 2030 strategy. And in a competitive market that we are in right now, and we know that with this competition will increase. And those tariff adjustments in Brazil and Colombia, we understand that the only way we can maintain ISA's competition in the long-term is adjusting our AOM expenses, and we have started to do this.

And in particular, when we compare 2018 to 2019, we had some particular events. We had an equity tax for 60,000 -- COP 60 billion, which makes a big difference. That's why this 3Q 2019 was so different from the rest of the period. So this is the -- these were the answers. Iván, in short, this is like -- the majority of these are one-timers.

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Iván Galvez, [7]

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One last question about the administrator costs. The costs accumulated up-to-date, but in the same period of the -- for the quarter, there's an important percentage. If we see the picture of the entire year, there's an increase that shows a stable level. But when we look at the quarter specifically, we see a significant drop in that percentage.

So I wanted to know -- in order to understand what happened in this 3Q, is this a milestone that we can expect to look forward to? Or is this due to other factors as well?

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Carolina Botero Londoño, Interconexión Eléctrica S.A. E.S.P. - CFO [8]

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These are one-off events, like Bernardo said. This is basically that the one-offs of the quarter have been heavier than the one-offs for the year. But we're going to examine this topic in a timely manner, and we will reply to you by e-mail.

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Operator [9]

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(Operator Instructions) We have a question on the chat. Mrs. Velásquez, please read the question.

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Gloria Cecilia Velasquez Trujillo, Interconexión Eléctrica S.A. E.S.P. - IR Officer [10]

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Yes. Good morning. The first question is, "How much is the debt for the concession -- the cost of concession? What is the debt assumed for the coastal concession? "

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Unidentified Company Representative, [11]

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COP 1.4 billion -- COP 1.4 trillion.

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Gloria Cecilia Velasquez Trujillo, Interconexión Eléctrica S.A. E.S.P. - IR Officer [12]

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All right. Let's go to the next question. With the lay of the national panel development, do you expect to participate in the marketing and distribution projects in Colombia?

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Unidentified Company Representative, [13]

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This is a very easy answer. No.

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Gloria Cecilia Velasquez Trujillo, Interconexión Eléctrica S.A. E.S.P. - IR Officer [14]

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All right. Next question. What expectations do you have with respect to the cycle of Paris updating on the scheme? I'm assuming this is in Colombia. There has been an indemnity mentioned for the change in the rules of the game, about the updating of the tariff cycle.

Recently, it was published in the agenda, and it was said by the middle of next year, there will be a final resolution. On the first quarter, we might have a draft. And on the second quarter, we might have a final resolution.

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Unidentified Company Representative, [15]

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Well, we cannot be discussing indemnizations until we have a clear picture of what's going to happen. What we've been told at the [CREG] that whatever is coming versus what happened before has relevant changes. So we have to wait in order to see whether this will imply one thing or another.

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Gloria Cecilia Velasquez Trujillo, Interconexión Eléctrica S.A. E.S.P. - IR Officer [16]

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Very well. Next question from the video chat comes from [Nicolas Alfonso, Conta Group]. And it reads, "About the..." This is cut off. Let's go to the next one.

Good morning. As the entire company, the statements of the ministry regarding the ISA is not on sale anymore, as stated by the Treasury Minister.

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Bernardo Vargas Gibsone, Interconexión Eléctrica S.A. E.S.P. - CEO [17]

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Well, I've been asked about this, and I have no opinion. I am not the owner. Owners need to decide if and how much they might sell, and if not they're not going to sell, they have to say so. Our job is to operate the company and do it well. And this, we hope -- and we were seeing that the value has increased. But we have no opinion regarding the shareholders regarding their own assets.

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Gloria Cecilia Velasquez Trujillo, Interconexión Eléctrica S.A. E.S.P. - IR Officer [18]

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Next question from Camilo Roldan from Davivienda Corredores . Taking into account the political and social problems in Chile, which negative effects do you expect for operations in Chile? Have you calculated the financial amount?

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Bernardo Vargas Gibsone, Interconexión Eléctrica S.A. E.S.P. - CEO [19]

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We're still evaluating, but it's too early in order to calculate what's going to happen. We're evaluating alternatives about -- to what may happen due to changes in toll rates in 2020. But right now, there is nothing that we can clearly see a particular cost.

We remain very careful. There were vandalization of lateral poles, but we've been covered by our insurance. So there is no financial contingency for us, but we still don't have enough to see the potential risks which could materialize. But we are obviously studying very clearly where these might appear. But we will suggest some figure regarding this.

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Gloria Cecilia Velasquez Trujillo, Interconexión Eléctrica S.A. E.S.P. - IR Officer [20]

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Very well. We're going to see whether there are any other questions. There is another one at the conference, .[Yuna], please.

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Operator [21]

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A question from Diego Buitrago from Bancolombia.

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Diego Alexander Buitrago Aguilar, Bancolombia S.A., Research Division - Energy and Gas Analyst [22]

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Let me take this opportunity to ask a couple more questions.

I would like to have an update about 2 topics. One of them is in the regulatory environment. What happened with the kind of the payment to the RBSE? And it's kind about the potential sign for entering into operation, the delay of the transmission project in Chile.

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Bernardo Vargas Gibsone, Interconexión Eléctrica S.A. E.S.P. - CEO [23]

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Both of them are pending, both in the [CAE] topic with kind of conversations with the [ACREA] and starting with our partner in Electrogas, and obviously, with the regulatory authorities with the Ministry, we are still discussing our expectations about the CAE but what's in -- it's a public discussions, so it's more geared towards a WACC. But in any rate, this would be a gain because the bigger concessions, we're expecting there will be no repercussion because of the cost of the money, but this is ongoing.

And about the potential fines for the lines in Chile, we're also working with all the local agents, all our teams, legal and regularly teams that support us.

To argue against the Ministry and the Chilean authorities, why we think that those delays were due to something else and have nothing to do with us.

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Diego Alexander Buitrago Aguilar, Bancolombia S.A., Research Division - Energy and Gas Analyst [24]

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Now Chile -- INTERCHILE, hasn't done any provision with regard to that?

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Bernardo Vargas Gibsone, Interconexión Eléctrica S.A. E.S.P. - CEO [25]

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No. It's difficult. It's uncertain what could happen there, so we don't know yet.

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Operator [26]

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You have a question by Andres Moncada from BTG.

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Andres Moncada Lopez, Banco BTG Pactual S.A., Research Division - Research Analyst [27]

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I just had a question. A couple of days ago, the [UPME] said that the next 5 years, that we're going to have a first energy storing system in the country. I would like to know how are the negotiations with the regulator? Well, these projects as well as the transmission of it.

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Bernardo Vargas Gibsone, Interconexión Eléctrica S.A. E.S.P. - CEO [28]

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Thank you. Yes, recently, it was a published in a resolution in which the participation in this project is mentioned. We, in effect, we are participating and bidding. Well, we think that the pre-documents will be published in December and we estimate that the presentation of our bid could be in the beginning of next year.

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Operator [29]

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(Operator Instructions) We're going to continue with the questions from the chat.

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Gloria Cecilia Velasquez Trujillo, Interconexión Eléctrica S.A. E.S.P. - IR Officer [30]

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Could you expand on the explanation of the inflation adjustments and its impact on the results?

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Unidentified Company Representative, [31]

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Of course, Fabian. Look, as you can recall, in 2018. In Q3 '18, specifically in July, there was a onetime adjustment that included 12 months of an adjustments for the tariff cycle in Brazil, so that from there on, we could go to a monthly basis.

So when we take that 3Q '18, it included 15 months of adjustment, the 12 months of the year plus 3 months versus when we compare to 2019. 3Q '19 only contemplates 3 months of the tariff update. When we compare, therefore, the results, we see that the 3Q '19 EBITDA falls 10.9%. But if we isolate that figure because in 3Q '18, there was that onetime event, then EBITDA grows 18.3%. That's the impact on the results.

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Gloria Cecilia Velasquez Trujillo, Interconexión Eléctrica S.A. E.S.P. - IR Officer [32]

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Next question. Good morning. How is the agreement with the Cóndor construction to enter the concessions business? And when could this materialize?

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Bernardo Vargas Gibsone, Interconexión Eléctrica S.A. E.S.P. - CEO [33]

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Well, the agreement with Cóndor has materialized already. All that remains is to precise some of the negotiated terms, which are ongoing, but they do not impact in any relevant manner what we have already agreed to.

Well, we have to evaluate the assets, and then we can proceed to acquiring them or to the auction. I think that Cóndor is one of the most important constructions -- constructors, and we can achieve a perfect alliance with them. So we are considering the assets and having them as our allies, especially those that have important peers of construction, we can begin to calculate the CapEx of those construction projects.

Everything has been signed. We are agreed and we are allied with those entities.

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Gloria Cecilia Velasquez Trujillo, Interconexión Eléctrica S.A. E.S.P. - IR Officer [34]

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Very well. Apparently, there are no more questions. Doctor, would you like to make a closing comment?

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Bernardo Vargas Gibsone, Interconexión Eléctrica S.A. E.S.P. - CEO [35]

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Well, thank you, everyone, for your presence. It pleases me to chat with you and answer your questions.

As we've always said, this is not a unique moment that we are happy to address your questions. We are always here to address any doubt, any question in the analysis of our data, which is always available in our website, and we will answer anything that we can.

I do want to reiterate that we are advancing in a consistent, permanent manner in our road concessions in Colombia and Peru. And as we said, this alliance with Cóndor, so we can increase even more the highways and road projects. And of course, in what remains of the year, we expect that if things continue the way they are, going on in this quarter, I think we can achieve historical results.

And before we finish, I want to highlight that again, this high -- this week, our results broke, once again, our growth floors. And we went -- we've broken -- 4x we've achieved the record highs in the price of our shares.

I think this is due in part to the sale process, because we could not hide that this must have an effect. But I feel that this effect, this explains only a part of it. But the most relevant portion of it is explained by this effort -- permanent effort that we embark on, to be efficient and to be profitable. This is what we want to present to you, our investors.

So we thank you for your participation. And have a nice day, everyone.

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Operator [36]

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Thank you, everyone. We -- this ends the conference today. Thank you for your participation. You may disconnect now.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]