Half Year 2016 Enagas SA Earnings Call
Jul 19, 2016 AM CEST
ENG.MC - Enagas SA
Half Year 2016 Enagas SA Earnings Call
Jul 19, 2016 / 07:00AM GMT
==============================
Corporate Participants
==============================
* Antonio Llarden
Enagas SA - President
* Borja Garcia-Alarcon
Enagas - CFO
==============================
Conference Call Participants
==============================
* Pablo Cuadrado
HSBC - Analyst
* Javier Suarez
Mediobanca - Analyst
* Carolina Dores
Morgan Stanley - Analyst
* Fernando Lafuente
N+1 Equities - Analyst
* Jose Luis
Macquarie - Analyst
* Nelson Bernardino
Haitong Bank - Analyst
==============================
Presentation
------------------------------
Unidentified Company Representative [1]
------------------------------
Good morning ladies and gentlemen. Welcome to this presentation on Enagas results for the first semester of 2015 (sic - see presentation 2016). The results were published this morning before the markets opened, and they are available at our website enagas.es.
Mr. Antonio Llarden, President of Enagas will be hosting this presentation. We expect the call to last around 20 minutes and afterwards there will be a Q&A session, during which we will try to answer any questions as fully as possible. Thank you very much for your attention, and I will now hand the floor to Mr. Llarden.
------------------------------
Antonio Llarden, Enagas SA - President [2]
------------------------------
Good morning ladies and gentlemen. Thank you very much for your attention. Ever since the conference call for the presentation of results of the first quarter, two major political events have taken place. First of all the Brexit referendum and in Spain the return of Spanish elections on June 26.
With regard to Brexit, and although this will have diverse implications in the global economy, it does not affect directly Enagas as a company. With regards to the election results on June 26, the markets and analysts themselves understand that in companies where the (inaudible) [analysis] this result will help reduce uncertainty and that is what is being reflected by the share price.
During these months, we have kept on advancing in fulfilling our engagements despite widespread volatility of markets. The results we present to you today are completely in line with our targets for the first half of the year, and on the right track to meet full year guidance, so for the objectives of 2016.
I am now going to introduce to you the headline figures that you can see in greater detail in the presentation accompanying this conference call. Our funds from operations when closing the first semester amounted to EUR414.3 million. This has enabled us to have a leverage ratio; I'm talking funds from operations in relation to our net debt, of 17.6%, which is higher than what we need to maintain our current standalone credit ratings.
The net profit has amounted to EUR214.2 million that is 0.5% higher than what we obtained during the same period last year. This rise has been possible thanks to partially two factors, the positive impact of the reduction in corporate income tax and in particular, thanks to a major contribution of our [industry] companies especially from brownfields that we acquired during 2015.
During the first six months of this year Enagas has invested a total of EUR193 million. Out of this amount, 16% was invested here in Spain and 84% represents international investments.
The most important investment that took place during the semester was the acquisition of an additional 1.64% of the Peruvian company TgP for an amount of $31.9 million. With this operation we have now control -- we are now in control of 25.98% of TgPs share capital. We have thus increased our stake in assets in which the company was already active and in which we play an important role as an industrial partner. This helps us continue to drive growth in both results and dividends.
In addition to what we have been doing in the semester, and although it's not included in the figures that I have just referred to, during the month of June, Enagas has agreed to take a greater stake in two industries where we were already present.
On the one hand, we have signed two agreements to increase our presence in the Chilean company Quintero, LNG (sic- see presentation GNL) Quintero, one with the company Endesa Chile and the other one with the company Metrogas to acquire 20% of the shareholdings of each of the companies in this terminal for a total amount of $400 million.
The purchase of an additional 40% of Quintero LNG (sic - see presentation GNL) will increase our stake in this infrastructure. We will go from 20.4% to more or less 60.4%. And this obviously will depend on the different rights offered -- first offer that the other shareholders have.
We have signed an agreement in June, on June 29 to raise our holdings in the Sagunto regasification plant and we will go from 30% to 72.5%. This agreement would allow us to acquire 42.5% of Saggas from Union Fenosa Gas for a total amount of EUR106 million.
These acquisitions, as I was saying, are subject to the conditions applicable to such transactions, which are, for instance, the possible exercise of preemptive rights of the proportional part by some shareholders and the corresponding approval from the regulatory bodies.
All three will be formalized during the fourth quarter of this year, and they will completely fit with Enagas' core business and with our profitability and debt targets, the ones we have set.
The increase of our investments our stakes in these two LNG terminals, on the one hand with Quintero and with TgP in Peru is completely in line with our investment plan and with our strategy to influence in a significant manner on the management of assets where we are already present, where we hold an interest. This is what sets us apart from a merely financial shareholder.
In general, our desire is not to own 100% of a company but rather to work with partners that create value for us. With this approach, the percentage stake may be higher or lower in percentage depending on the particular circumstances of our partners, of the type of investment, and the opportunities that exist.
In the last few months we have had these three opportunities before us that we considered needed to be taken. In assets that we have been monitoring for some time, we have also been studying these projects, which rigorously meet all of our investment criteria, as I said. And along the way we also have rejected other opportunities that did not fit this criteria.
------------------------------
Unidentified Company Representative [3]
------------------------------
(Spoken in foreign language)
------------------------------
Antonio Llarden, Enagas SA - President [4]
------------------------------
Cash outflow in the first half of 2016; this will be in the second semester. More specifically, we gave EUR0.79 per share giving a total dividend for 2015 of EUR1.32 per share charged to the profit.
And regularly before going through the objectives, I shall summarize the gas demand in Spain, and this will be the first good news. It is evolving much better in the first quarter. Now the industrial demand, which probably best reflects the performance of the economy generally in Spain, remains strong and has grown by 2% sustainably compared to the first half of the previous year, 2015. Overall, demand for gas however has been hit by a lower demand for gas to generate electricity partly due to a fall in electricity demand but because of high rainfall and greater coal consumption.
Before finishing, I'd like to mention one of the successful factors of Enagas, which is our commitment to sustainability, which we have incorporated into the company's strategy and operations. During the first half of this year we have received various awards that we accept, some of them very prestigious like the Global 100 index presented at the Davos Forum, or we have been appointed as Ambassador of European Excellence 2016.
Another is that, although they may be less known, recognized by (inaudible), which we give importance to at Enagas, such as corporate transparency or given the (inaudible) prevention and safety culture in the workplace.
I shall recall briefly, which are our targets for 2016. An increase in net profit of 0.5% minimum, total dividends from our indices of around EUR65 million, total dividend -- total investment of EUR465 million and a dividend of EUR1.39 per share, it's a 5% increase compared to last year, and all these with a net cost of debt of around 2.7%. We are going to wait for the acquisition agreements drawn up in the first half of this year are finalized before updating the targets and forecasts in our 2016/2020 strategic plan.
So in order to finish my intervention and as a conclusion, I would like to highlight three major points. The first one, the results obtained in this first half confirm that the targets we set ourselves for this year are already being achieved and even in some cases we are surpassing them.
Secondly, Enagas' international business continues to increase in importance and is enabling us to increase both on earnings and on dividend, without forgetting of course that the cash flow that regularly comes from our investments in Spain ensure our brands of the company.
And finally, we've got a very solid financial position with diverse sources of financing and considerable liquidity. We are committed to maintaining our current standalone credit ratings. And within this context and with the volatility shown by the markets, having no major debt repayment schedule allows us to feel much more comfortable.
So against a backdrop in which analysts and financiers in general agree that global market volatility is set to remain, at Enagas we have managed to continue strengthening the central pillars of the company and that will enable us to face up to future challenges with greater solidity.
So thank you for your attention. If you have any questions please feel free to ask them now and we will endeavor to answer them as soon as we can, here all the team of Enagas present at this meeting. Thank you very much.
==============================
Questions and Answers
------------------------------
Operator [1]
------------------------------
(Operator Instructions). Pablo Cuadrado, HSBC.
------------------------------
Pablo Cuadrado, HSBC - Analyst [2]
------------------------------
Good morning everybody. I've got three questions please. The first one related to the debt cost and the guidance. Because I think I've understood that you consider that you're going to be able beat the debt costs for the yearend. You mentioned that you are around 2.3%, 2.4% whilst the year -- at the beginning of the year we were saying 2.7%, 2.8%.
I'd like to know why you haven't changed your objective of net benefit growth because the basic points of savings of the debt of [EUR4,000 something] can in net terms give you EUR10 million. So I think that -- are you expecting something that might affect negatively the second part of the year.
The second question is could you give an update on the GSP Peru project? There have been some articles in the media on the new situation and the company that might have interest. And I'd like to know if you can tell us if you would be interested on increasing your share in this project, bearing in mind that the operations that you have launched recently with Quintero and Saggas if they could fit with GSP.
And the last question would be the one related to the TAP project. One of your partners recently in a strategic presentation gave a very positive view on the contribution on TAP results contribution for this year. Could you recall us if you had a positive inclusion in the business plan to do this in 2020 due to TAP or have you not included it? If you have included it, could you recall which is the contribution that you were considering from this project? Thank you very much.
------------------------------
Antonio Llarden, Enagas SA - President [3]
------------------------------
Thank you very much Mr. Cuadrado. Yes, our -- the first question our debt cost in the budget is 2.7%. We estimate that by the yearend, it would be at around 2.4% more or less depending on the evolution of everything, but of course, we expect for there to be a slight increase of positive cash.
But, you know that all year long we don't tend to modify our objectives because we might have upsides and downsides. We are not expecting anything, I'm just answering specifically your question. We are not expecting any downside or upside. But when we do the forecasts for the year with 0.5% of the profit, we have already taken into account possible upsides and downsides, so we remain at 0.5%.
From now on, yes, we have seen that we have got a possible upside, you're right. This increase is the weight of debt is the one we estimate we'll have slightly higher. But we are not going to change now because otherwise every quarter we would be surprising you with changes in the objectives and we understand that has no reason to be done. So this is, let's say, has more treasure in this battle that, well, we will have it for the yearend. But we are not going to change our objectives now, right now, no.
As for GSP I have to say that we are very glad the road map that the government from Peru and the concession there and the banks participating in the operation with a green light as an operating partner for the concession is developing timely. We've got three major questions.
First, the Peruvian Government, which is still in function in office and the new government with whom we've already had contact and you've followed the public statements of the new President of the Republic, they fully support the Gasoducto of the South of Peru. And they have really committed to move on with all the administrative measures, helping to favor this project. I won't give you the details but I could tell you many, many things.
Secondly, the banks participating in the operation, as you know they demanded the (inaudible) and the bridge partner because of the problems you're aware of, for them to sell their stake. This process started correctly. But now as the media explained there are two or three offers that have been placed at a final negotiation phase between these bidders and Odebrecht. And at some time, I cannot tell you how much, but I guess in a couple of months we will already have a new shareholder.
Answering specifically to your question, we feel comfortable with our 25%. At no time have we thought of enlarging our stake in a significant way. It would be different to see that at the end of this kind of process to round up 3%, 4% of our present stake but at no time have we ever thought of any interest of having a greater stake in this project. Because of the volume of the project but because we are the qualified operator that the basis of the project is required to have the shareholders [composition], and they even set a certain amount of shares for this kind of operation which is 25%.
So, specifically answering the process of the change of the major holder in this project GSP is right on track. The current government in term, in office and the new government support fully this operation. And as operator partner, we are comfortable and happy with this process.
And finally, regarding the Trans Adriatic Pipeline I shall confirm that our forecast that you're aware of that we did some time ago at the beginning of the year by 2016/2020. For 2020 we have foreseen -- we have got a net result income of EUR40 million coming net from TAP not a dividend but as a net result. And I am aware that one of the partners of the project has recently given higher figures. But as the figure is the fruit of the estimates we did back in time, we haven't changed these figures.
Maybe in the future within this TAP company structure actively in the board and in the working commissions or committees that we reach the conclusion that we have to increase this figure. Well I'm telling you this because we know that our figure is much more conservative than the one that -- given by our partner. But this figure is part of a forecast done by TAP seven or eight months ago. So we're not going to modify them right now. Thank you.
------------------------------
Operator [4]
------------------------------
Mr. Javier Suarez from Mediobanca.
------------------------------
Javier Suarez, Mediobanca - Analyst [5]
------------------------------
Hello. Good morning, everyone. I am Javier Suarez from Mediobanca. I also have three questions. The first one is regarding the TAP project. I would like to know what you think about what happened during the weekend in Turkey and the implications that you see for the project.
I know that TAP does not go through Turkey, but obviously it has to be connected to other pipelines so that we can connect the reserves in [Serbia] and the south of Italy. So I wanted to know what the implications could be due to the greater geopolitical tensions in the area. So I would like to know what your considerations are and whether you think that this project might be delayed. That's the first question.
The second question has to do with the financial structure of the company. After the recent purchases of shares in Quintero and Saggas that should happen at the end of the year, my question is, is it fair to say that the company has moved its ratio after this purchase to the maximum that it can observe from [fall-over] debt and where your CapEx is complete so that the company will have to be more careful in its international expansion? Would that be fair from your point of view?
The third question has to do with guidance. I have seen on page four of your presentation that you talk about an EBITDA, an objective EBITDA of EUR880 million. I think I remember that during the presentation, during the first quarter you were talking about EUR880 million and EUR895 million. I would like to know if that's the case and why you position yourself in the lower part of that range. Thank you.
------------------------------
Antonio Llarden, Enagas SA - President [6]
------------------------------
Thank you so much, Mr. Javier Suarez. First of all, with regards to the Trans Adriatic Pipeline and Turkey, my personal opinion is that the situation in Turkey will not affect -- rather on the contrary, it will favor even more the successful completion of this project.
TAP obviously is linked to the Trans Anatolian Pipeline. In the Trans Anatolian Pipeline the big company BOTAS is one of the main shareholders with 30 something percent, my political opinion is that with everything that is going on not just in Turkey but in the Middle East and in Europe, I believe that the Turkish Government regardless of any other political assessment that we might do will have a very high interest of somehow strengthening its relationship with its neighboring countries and more specifically those in the EU.
What has happened will simply reinforce the need for such an important project, which is very important for Turkey in itself -- becomes a successful project. So I honestly think that this will not have an influence, and on the contrary, if something may influence, it will be in reinforcing of this project regardless of any other political context.
As for financial strategy, our purchasing strategy is always a prudent one. We are always cautious when we carry out purchasing operations. We always take into account that they strategically fit with our activity; secondly that returns need to be proportional and adequate to the risks we run; and thirdly, but I think it should be the first priority really, it has to fit with our debt policy.
So you can be sure of the fact that we are going to keep on being prudent and if we do make any future investments they will have to adapt to our debt ratio, the one that we have established, which as you have seen, we publish with all the needed transparency. We are completely aware of the margin that we have.
So I just wanted to state here -- and I actually think that I said it twice in my intervention; I had it written a third time but I didn't want to be too redundant - so our first priority is to maintain our seven stand-alone credit ratings and to fulfill our dividend promises and to keep on developing an investment policy that will allow us to grow but in a cautious way.
Last but not least, with regards to EBITDA, you're absolutely right. During the first quarter we talked about EUR880 million/EUR895 million. These EUR15 million derive from possible pending revenues. We haven't said it here, but it's true, we maintain the same principle, same (inaudible). So EUR880 million would be our safety guidance with the possibility of having an additional EUR10 million to EUR15 million if all through the year or during the second semester these pending revenues do take place, the ones that we have deducted.
So there has been no change whatsoever. We simply have as always been prudent. We have been cautious and have had a conservative statement. But that's the case. Thank you very much.
------------------------------
Operator [7]
------------------------------
Miss Carolina Dores, Morgan Stanley.
------------------------------
Carolina Dores, Morgan Stanley - Analyst [8]
------------------------------
Good morning. Thank you for taking my question. I've got just one question. With the acquisition of the Saggas stake, do you think that you can have lower costs as you included in your operations?
------------------------------
Antonio Llarden, Enagas SA - President [9]
------------------------------
Thank you, Carolina. Yes, the answer is, yes, we do think that once consolidating the operation, so that means reaching Q4, we will sit with the rest of partners and during 2017 all through 2017 we will be able to simplify the structure which is quite complex. The intermediaries companies' structure, because of its background and its track record and its creation 12 or 14 years ago -- so we will be able not by 2016 but by 2017 to set up synergies once this process is done.
In fact, one of our objectives when we increased our participation is that one. This will not be immediate of course. We will need time and we will do it in agreement as we always act under terms with our partners and also 2017 we will simplify the company structure, which is complex, and, therefore, obtaining synergies of all natures.
I think that 2017, this is going to be one of our major objectives or homework for 2017 to improve our efficiency. Thank you.
------------------------------
Operator [10]
------------------------------
Mr. Fernando Lafuente, N+1 Equities.
------------------------------
Fernando Lafuente, N+1 Equities - Analyst [11]
------------------------------
Hello, good morning. I've got two quick questions: one on acquisitions -- it's a twofold question. The minimum level that you're comfortable with, with debt? And do you have any assets which you have a stake that you might consider (inaudible) objective in the coming three months. The other one is the tariff deficit. Can you give us a guidance of the sector and what you expect for the coming years? Thank you.
------------------------------
Antonio Llarden, Enagas SA - President [12]
------------------------------
Thank you, Fernando. First of all, yes, the minimum ratio for the debt required by the rating agencies at 15%. It is something that we follow closely and I can tell you that -- I think I can be clear here and be transparent here. We periodically have contacts with the rating agencies precisely to review with them that our operations are meeting all the criteria. So we closely follow this and we'll continue to follow it closely.
When we've done these operations we've already talked to the rating agencies to make sure that we all understood the figures and that we are in line with adequate margins.
As I said in a previous question and in my initial intervention in my conference call, I repeat, our rating objective is a major priority objective, and if you will [allow], is as a frontispiece of our working stance.
As for the assets, I think you rather ask if we've got assets that we might be able to sell. Is that what you were asking? In those cases we're fully looking at everything that is taking place in our environment, but for the time-being we haven't had any asset that we might have an interest of buying.
You were asking about deficit too. I will give the floor to the CFO, Borja Garcia-Alarcon, who will give you more details about that. You have the floor.
------------------------------
Borja Garcia-Alarcon, Enagas - CFO [13]
------------------------------
Thank you, President. Thank you, Fernando. Bear in mind the year-end 2015 deficit [EUR561 million] and the final of 2014 which will be EUR512 million. The accumulated deficit will be EUR1.143 billion. Even if we start 2016, the gas system is balanced, because the expenses and revenues will coincide.
The time that the gas system will take to absorb the current accumulated deficit depends on the demand evolution, but with this annual balance we expect for the deficit to be absorbed by the end of 2020 or the beginning of 2021.
I shall compliment to this info, these are more or less the figures with which we had the regulatory reform done in 2014, including an increase by 2015/2016 -- the previous debt. We were acknowledging the previous debt. The costs were balanced. We're doing that, and, therefore, the following years we would be eliminating this.
So we are following the roadmap that was appointed by the reform led by the Secretary of State, Mr. Nadal, and today with all the nuances you might want to include we are fully in-line.
The demand, as you have seen, in the second quarter has improved a lot, and we still think that by 2016/2020 the demand will be -- we will continue the track that we have been explaining, and we are fully at ease, not only us but in general terms, the gas sector does not consider, from the conversations I've got with other presidents of companies and CEOs -- we don't consider that this is now an issue that we have to correct. Thank you.
------------------------------
Operator [14]
------------------------------
Mr. Jose Luis, Macquarie.
------------------------------
Jose Luis, Macquarie - Analyst [15]
------------------------------
Yes, good morning. I just have one question. It seems that from the French side there have been some discussions with regards to the MidCat project. I wanted to know if your initial target for the MidCat to be ended on 2019 could suffer some sort of delay. Thank you very much.
------------------------------
Antonio Llarden, Enagas SA - President [16]
------------------------------
Well, yes, thank you very much, Mr. Luis. It's true that the French side had made a comment that was published by the media by the regulatory agency in France. It's not actually a new comment. That is what the regulating agency in France has been saying for a few years.
I was three weeks ago in Copenhagen, the meeting of the EU Forum on Infrastructures. I was there with the General Director for Energy in the Union. I was with the Commissioner on Energy and Climate Change at the Union. I was talking to them and to other people present there, and I have to say that the European Commission still maintains its idea for the 2019/2020 period the MidCat should be ready -- the MidCat connection should be ready.
I think I said that during the last results presentation. Maybe with a twofold scheme, two-stage scheme, but for us the first stage would be 100% of what we have to do, which is the physical connection through the Pyrenees.
So we haven't introduced any changes in our policies. We know from the beginning that we have an investment to make during 2019 that will have to be ready at the end of 2019/beginning of 2020, not sooner than that with regards to costs and revenues. That's how we have seen it. From that point of view there are no changes.
It is true that this goes to show what we already know, which is the fact that this is going to be a complex process, a slow one where probably the solution that we will adopt will be a two-fold, two-stage solution. During the second stage we would have a progressive advance through France by increasing pressure in certain points.
It would take a very long explanation to make you see what we mean by those stages, but as a conclusion, we do think that in 2019 this could be done. Thank you very much.
There are no further questions in the Spanish room. We will now give the floor to...
------------------------------
Operator [17]
------------------------------
Nelson Bernardino, Haitong Bank.
------------------------------
Nelson Bernardino, Haitong Bank - Analyst [18]
------------------------------
Hi. Good morning, everyone. Thank you for taking my question. Three quick questions. The first one, you mention the possible synergies in segments, do you also expect any cost improvement in Quintero?
Second question. The year-on-year gas demand has been falling by 1.3%. What is your current outlook for the year in 2016? Finally, there has been a small quarter-on-quarter increase in personal expenses. Is this something you were expecting? How do you see this going forward? Thank you.
------------------------------
Antonio Llarden, Enagas SA - President [19]
------------------------------
Thank you so much, Mr. Nelson Bernardino. First of all, in Quintero, the company is very well managed. We are following closely what the executive team is doing -- very powerful executive team. In Quintero right now the operational costs, operating costs are impeccable. They are perfect and what we have foreseen for Quintero. This explains our interest to increase our shares.
Actually the money is ready for the third tank to take place. When the third tank is up and running, because that could increase the functional capacity of the plant up to 50%, that will be an enormous new cash flow influx for the company.
I think we already said that in Quintero the money for this is already ready. So from that point of view there will be an improvement of results in Quintero. But not because its internal functioning isn't good; it is. It is very good. But because we will have this additional capacity.
The second thing with regards to demand, the first trimester was very bad, and we already said it. It was due to timing. During this second quarter, this has completely changed. For the end of the year we think there are two things that we need to bear in mind -- three things that we need to bear in mind that allow us to make predictions.
First of all, it is keen to -- we maintain the evolution of the Spanish economy. All the factors, all the elements that I have read from analysts and the Government itself mention that they foresee a growth for Spanish economy in the next few months of at least 3% of the GDP. This follows on what we have seen, which is the fact that the industrial demand is growing 2%.
So we think that industrial demand is going to keep on being an important pillar of the growth of gas demand. This pillar represents around 70% of Spanish consumption currently. I could even daresay that we are certain about this.
The second point is the weather during the second semester is closer to an average year from the meteorological weather perspective. We have done so thinking that some years can have a maximum of four cold waves. This year we haven't had any. We've had just one cold wave during the winter this year, and if we only have one then we could recover the domestic demand that we would have on a normal average year.
Then there is the third point that it's difficult to calibrate [affairs], which is the gas demand for electricity generation, which represents 15% of the total. During this first semester it has behaved badly from the gas demand point of view due to an excess of water, to increase of gas demand. It will depend on how strong the demand is during summer. I'm talking about air conditioning and so on. Then there is the greater or lesser consumption of coal, which is something that is not under our control.
We think that we will end the year -- this is the best forecast that we may make right now -- with a net increase of gas demand above last year's demand, which can be up 1 to 3 points higher than last year depending on factors two and three. The first one we are sure of, so we think that there will be a normal gas demand during 2016.
Finally, I think that you were asking about personal expenses. My financial director says that he has some information here before him, so I will give Mr. Borja Garcia-Alarcon the floor.
------------------------------
Borja Garcia-Alarcon, Enagas - CFO [20]
------------------------------
Thank you, Mr. President. As we said at the beginning of the year, personal expenses are going to increase when compared to last year EUR10 million. This can be broken down into two concepts. First of all, the long-term incentive plan that was approved during the general shareholders' meeting that will have a EUR4.7 million impact. Then the fact that our staff has increased -- we are now growing internationally, so we have set out to that, and that represents EUR5.3 million.
What we are seeing all through the year is that there has been an evolution for this increase on a monthly basis. Thank you very much. If there are no further questions we are here for you through shareholders' relations department to clarify whatever figures or elements that you need to.
Since we are now in the month of July, I would like to hope that you have lovely holidays for those of you who haven't had them yet. Thank you very much.
------------------------------
Editor [21]
------------------------------
Statements in English on this transcript were spoken by an interpreter present on the live call. The interpreter was provided by the Company sponsoring this Event.
------------------------------
Definitions
------------------------------
PRELIMINARY TRANSCRIPT: "Preliminary Transcript" indicates that the
Transcript has been published in near real-time by an experienced
professional transcriber. While the Preliminary Transcript is highly
accurate, it has not been edited to ensure the entire transcription
represents a verbatim report of the call.
EDITED TRANSCRIPT: "Edited Transcript" indicates that a team of professional
editors have listened to the event a second time to confirm that the
content of the call has been transcribed accurately and in full.
------------------------------
Disclaimer
------------------------------
Thomson Reuters reserves the right to make changes to documents, content, or other
information on this web site without obligation to notify any person of
such changes.
In the conference calls upon which Event Transcripts are based, companies
may make projections or other forward-looking statements regarding a variety
of items. Such forward-looking statements are based upon current
expectations and involve risks and uncertainties. Actual results may differ
materially from those stated in any forward-looking statement based on a
number of important factors and risks, which are more specifically
identified in the companies' most recent SEC filings. Although the companies
may indicate and believe that the assumptions underlying the forward-looking
statements are reasonable, any of the assumptions could prove inaccurate or
incorrect and, therefore, there can be no assurance that the results
contemplated in the forward-looking statements will be realized.
THE INFORMATION CONTAINED IN EVENT TRANSCRIPTS IS A TEXTUAL REPRESENTATION
OF THE APPLICABLE COMPANY'S CONFERENCE CALL AND WHILE EFFORTS ARE MADE TO
PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS,
OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE CONFERENCE CALLS.
IN NO WAY DOES THOMSON REUTERS OR THE APPLICABLE COMPANY ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER
DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN
ANY EVENT TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S
CONFERENCE CALL ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE
MAKING ANY INVESTMENT OR OTHER DECISIONS.
------------------------------
Copyright 2018 Thomson Reuters. All Rights Reserved.
------------------------------