Earnings Transcript for EDN - Q2 Fiscal Year 2022

Operator: Good afternoon, ladies and gentlemen, and thank you for joining. At this time, we would like to welcome everyone to Edenor's 2Q 2022 Earnings Conference Call. We would like to inform you that this event is being recorded. After the company's remarks are completed, there will be a question-and-answer section through the webcast chat. Before proceeding, let me mention that forward-looking statements are based on the beliefs and assumptions of Edenor's management and on information currently available to the company. They involve risks, uncertainties and assumptions because they relate to future events and therefore, depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions and other operating factors could also affect the future results of Edenor and could cause results to differ materially from those expressed in such forward-looking statements. Now I'll turn the conference over to Mr. German Ranftl, CFO of Edenor. Thank you.

German Ranftl: Good morning, everyone, and thank you for joining. Welcome to Edenor earnings webcast for the second quarter 2022. As you know, you can always call any member of our team for more details on the results of the period or any jobs you may have. First, we will focus on the highlights. Edenor continues to guarantee the electricity distribution services to all its 3.2 million customers, which represents a population of approximately 11 million people. Our mission is to provide a socially responsible electricity distribution service leading the energy transition that contributes to improve people's quality of life, business and community developments as well as to the -- to our employees, bondholders and shareholders. We are committed to our community, which is why we have adopted the best environmental, social and government practices. Edenor was able to maintain its quality services for all its clients. The key indicators, SAIDI and SAIFI, represents the duration and frequency of energy cuts for the last 3 months shown an improved of 16% and 8% compared to the same period of the last year. Revenues from sales were 6% lower than second quarter of 2022 in real terms, mainly due to the inflation differences and the tariff that has been frozen. Edenor was able to refinance its financial debt and the new issue of $52 million has been rated as a social bond according to Fitch Argentina. As of June 1, 2022, it applies the updated of the seasonal prices of energy and instructed Edenor to carry out the corresponding adjustment of the tariff table. The rates had an average increases, which represents to a tariff rate stable of 14% in residential category and 15% in general category. This has not been any adjustment for the value-added distribution service. As of June 2022, a subsidy segmentation regime for residential users of electricity and gas public services with the aim of achieving reasonable energy values that can be applied with criteria of justice and distributive equity. The segmentation system is made up of the following levels

German Ranftl: