Good morning, ladies and gentlemen, and thank you for waiting. At this time, we would like to welcome everyone to Edenor's First Quarter 2019 Results Conference Call. We would like to inform you that this event is being recorded, and all participants will be in listen-only mode during the presentation. After the remarks are completed, there will be a question-and-answer session. [Operator Instructions] 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. 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. Leandro Montero, CFO of Edenor. Mr. Montero, you may begin your conference.

Thank you very much. Good morning, everyone, and thanks for joining our first quarter 2019 earnings conference call. First, we will focus on the main events that recently took place and then briefly review the response of the quarter. As you know, you can always call any member of our team for more details on the results of the period or any doubts you might have. In first place, at last minute last Friday I made the term, you will notice that the final of approval has been done by the corresponding authorities regarding the agreement the company entered into for the implementation of the tariff fixing transfer of the public electricity division service of Edenor from National Government to the Province of Buenos Aires and the Autonomous City of Buenos Aires. Certain agreement stipulates that the province of City of Buenos Aires, they cover jointly the nature of the granting authority of self-service and that the public service rendered by the company will continue to be governed by the constitution contract and by all applicable legal national and regulatory principles. Within this agreement, Edenor entered into, as well a liability regularization agreement with a Secretary of Energy on behalf of the National Government, thus, terminating the pending receivable claims originated in the 2006, 2016 transition period. In this agreement, the company weighed all rights of action that maybe applicable against the National Government, including the action filed by Edenor in [2015] for failing to comply with obligation facility from the assessment agreement subscribed in 2006. At the same time, we undertake to settle pending debt related to the financing of certain CapEx to partially cancel [indiscernible] originated in the transition period. Finally, we agreed to pay the users first-time penalties and compensations corresponding to that period and undertake the…

Thank you. The floor is now open for questions. [Operator Instructions] The first question comes from Frank McGann with Bank of America. Please go ahead.

Yes, thank you. Good morning. Just a follow-up on the regulatory liabilities regularization agreement to make sure I understand completely the ASR7.6 billion is going to be paid out over a five-year period. The ASR6.9 billion in forgiveness I guess is – just takes place immediately. So, the – should we assume the net gain would be approximately ASR700 million that would be included in the second quarter?

Hi, good morning, Frank. Yes, your understanding is quite correct. There is another accounting effect that will impact in our second quarter results. But in general terms, as you mentioned, we will have to pay in the following year the ASR7.6 billion. Just to be more accurate, ASR3.1 billion are related to income tax and other expenses related to the trial or to the drop of the claim we have to do. That payment will be most of it the next year when we have to pay the income tax of the year of 2018. And then we pay immediately ASR1.4 billion, which is the amount we’ll receive, but that’s in compensation. We’ll receive the credits related to the social tariff that the government had with us and the recognition of the framework agreement. That ASR1.4 billion were not accounted for in our financial statement or balance sheet, so they will be recognized at the same time, and that credit will be used to pay partially the loans from CAMMESA and partially other debts we have with the government related to certain works or investment the government has financed us. The remaining ASR3 billion is a commitment we agreed to make investment during the following five years.

Okay. So, approximately ASR1.4 billion this year, ASR3.1 billion mostly in 2020 and the remainder spread out over the period for investments?

ASR1.4 billion this year, that is a compensation; ASR3.1 billion next year, it is related mainly to income tax; and ASR3.0 billion is the investment or the CapEx plan commitment to be made in the following five years.

Okay, great. Thank you very much.

You’re welcome.

[Operator Instructions] Showing no further questions, this concludes the question-and-answer section. At this time, I would like to turn the floor back to Mr. Montero for any closing remarks. Oh! Pardon me. I do have a question sir from Francisco Sersale with PointState. Please go ahead.

Hi, good morning. Thank you for holding the call and for taking questions. Just a follow-up on Frank McGann’s question. The additional CapEx, which you said ASR3.1 billion over the next five years, will that go towards the regulatory asset base and therefore impact the distribution tariff when the next regulatory review is held? Thank you.

Good morning, Francisco. That’s a very accurate question. No, they are not going to be included in the regulatory asset base and – well, the ASR3.0 billion CapEx plan committed will not be – have any impact on the tariff in the future, except for the maintenance cost that usually are related to the new CapEx, but not – will have not the impact in the – or will not be taken into consideration in the regulatory asset base.

Okay, thank you.

You’re welcome.

This concludes the question-and-answer session. At this time, I’d like to turn the floor to back to Mr. Montero for any closing remarks.

Well, thank you very much for joining this conference call, and have a nice day. Thank you, bye.

Thank you. This concludes today's presentation. You may disconnect your line at this time, and have a nice day.