FINANCIAL STATEMENTS ANALYSIS

ENEL CHILE GROUP

AS OF MARCH 31, 2024

ENEL CHILE

ANNOUNCES CONSOLIDATED RESULTS

FOR THE PERIOD ENDED MARCH 31, 2024

(Amounts expressed in millions of Chilean Pesos Ch$ million)

EXECUTIVE SUMMARY

  • Net income attributable to Enel Chile S.A. as of March 31, 2024, reached Ch$ 148,567 million, a 5.8% increase when compared to net income for the first quarter of 2023. This was mainly due to a more efficient generation mix and higher energy sales, offset by lower gas sales during the current year, coupled also with lower expenses in the financial result during the first quarter of 2024.
  • Operating revenues decreased 12.0% to Ch$ 1,052,796 million as of March 2024, primarily due to lower gas sales in the Generation business this quarter, partially offset by higher energy sales in both the Generation and the Distribution and Networks business segments.
  • Procurement and services costs reached Ch$ 693,820 million as of March 2024, a 17.2% decrease when compared to March 2023, primarily explained by lower fuel consumption costs and gas costs of sales, both in the Generation business.
  • As a result of the Ch$ 278,027 million as of March 2024, similar to the figure for the first quarter of 2023.
  • Financial results improved Ch$ 19,993 million, going from a Ch$ 16,901 million expense as of March 2023, to a Ch$ 3,093 million gain as of March 2024, mainly explained by greater financial income and higher income from exchange rate differences.
  • During the first quarter of 2024, Enel Chile, through its subsidiary Enel Green Power Chile (EGP Chile), began commercial operation of its photovoltaic park El Manzano (99 MW) and its wind power plant La Cabaña (106 MW) after receiving authorization from the National Electric Coordinator. Both projects are part of the Company's hybridization strategy as they also consider the incorporation of storage batteries (BESS), with capacities of 67 MW and 34 MW, respectively.

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FINANCIAL STATEMENTS ANALYSIS

ENEL CHILE GROUP

AS OF MARCH 31, 2024

BUSINESS SEGMENT SUMMARY

Generation

  • Net electricity generation increased 19.4% to 6,051 GWh as of March 2024 (+983 GWh), mainly due to higher hydro (+935 GWh), solar (+200 GWh) and wind (+148 GWh) dispatch this year.
  • Physical energy sales increased 12.7% (+1,006 GWh) to 8,906 GWh during the first quarter of 2024, mainly explained by greater regulated customer sales and spot market sales.
  • Operating revenues as of March 2024 decreased 19.9% to Ch$ 783,744 million, primarily due to lower gas sales this quarter, partly offset by greater energy sales.
  • Procurement and services costs reached Ch$ 463,103 million during the first quarter of 2024, representing a 29.7% decrease mainly explained by lower energy purchase costs, fuel consumption costs and gas costs of sales.
  • As a result of the abovementioned, the EBITDA of the Generation Segment reached Ch$ 274,278 million as of March 2024, a 0.7% higher than the first quarter of 2023.

Cumulative

Physical Data

Mar-24

Mar-23

% Change

Total Sales (GWh)

8,906

7,900

12.7%

Total Generation (GWh)

6,051

5,068

19.4%

Distribution & Networks

  • Physical sales reached 3,643 GWh as of March 2024, representing a 1.1% increase (+41 GWh) when compared to the first quarter of 2023, mainly in the industrial and commercial customer segments.
  • Total number of customers grew 2.1% during the first quarter of 2024 to 2,140,260 end users, mainly residential and commercial customers. On the other hand, energy losses remained stable at 5.4% in March 2024 when compared to the same period of 2023.
  • Operating revenues increased 14.3% when compared to March 2023 to Ch$ 376,379 million, mainly due to greater energy sales explained by greater physical sales and a greater average sales price when expressed in Chilean pesos related to contract indexation clauses.
    • 2 -

FINANCIAL STATEMENTS ANALYSIS

ENEL CHILE GROUP

AS OF MARCH 31, 2024

  • Procurement and services costs increased 15.6% to Ch$ 331,021 million during the first quarter of 2024 when compared to the same quarter of 2023, primarily due to greater energy purchase costs.
  • Consequently, EBITDA of the Distribution and Networks business amounted to Ch$ 19,484 million as of March 2024, a 0.8% less than the figure for the first quarter of 2023.

Cumulative

Physical Data

Mar-24

Mar-23

% Change

Total Sales (GWh)

3,643

3,602

1.1%

Number of Customers

2,140,260

2,096,833

2.1%

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FINANCIAL STATEMENTS ANALYSIS

ENEL CHILE GROUP

AS OF MARCH 31, 2024

FINANCIAL SUMMARY- ENEL CHILE

decreased US$ 23 million during the first quarter of 2024 to US$ 4,384 million, when compared to December 31, 2023. This variation is mainly explained by the following:

  • Disbursement in February and subsequent repayment in March 2024 of Enel Chile's committed credit line granted by Enel Finance International (of US$ 290 million) for US$ 200 million.
  • A US$ 23 million decrease in leasing liabilities (IFRS 16).

Liquidity available to Enel Chile is composed of the following:

-

Cash and cash equivalents

: US$ 450 million

-

Undisbursed committed credit lines

: US$ 1,625 million

creased to 4.8% in March 2024 from 4.9% in December

2023.

Hedging and protection:

To mitigate the risks associated with exchange rate and interest rate variations, Enel Chile has established policies and procedures to protect its financial statements against the volatility of these variables.

states that there should be a balance between

have cross currency swaps and forward contracts that amount to US$ 252 million and US$ 954 million, respectively.

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FINANCIAL STATEMENTS ANALYSIS

ENEL CHILE GROUP

AS OF MARCH 31, 2024

INFORMATION RELEVANT TO THE ANALYSIS OF THESE FINANCIAL STATEMENTS

Regulatory Changes:

  • As part of the social agenda announced by the government, the Ministry of Energy
    on November 2, 2019. This Law creates a Temporary Regulated Customer Tariff Stabilization Mechanism that states that the price to charge regulated customers for electricity from July 1, 2019, through December 31, 2020, is to be equal to the prices in force during the first semester of 2019 (Decree 20T/2018). This stabilized price was
    named t January 1, 2021, until the stabilization mechanism is suspended, the prices will be those defined in the tariff setting processes carried out every six months as established in Article 158 of the Electricity Law, but not to exceed the PEC adjusted by inflation according to the Consumer Price Index as of January 1, 2021, using the same date as base (adjusted PEC). The billing differences until 2023 are to be recorded as accounts receivables in favor of generation companies, limited to a maximum US$ 1,350 million. This limit was reached in January 2022. The balance of these accounts receivable is to be recovered, at the latest, by December 31, 2027.
    acronym) published Exempt Resolution 340 that modified the technical provisions regarding the implementation of the Tariff Stabilization Law. This Resolution clarified
    that the pay chronological manner, beginning with the most dated to the most recent pending
    been interpreted by the industry up to such date.
  • On August 2, 2022, Law 21,472 was published creating a new Tariff Stabilization Fund and a New Transitional Regulated Customer Tariff Stabilization Mechanism. The Law also established a customer protection mechanism to pay the difference between the respective regulated supply contract price and the stabilized tariff. The goal was to

al increases over the next decade. A US$ 1.8 billion transitional fund was created to accumulate the regulated customer price differences and pay electricity generation companies with a Payment Document in US dollar, transferable, subject to price indexation, issued monthly by the Chilean Treasury Department and secured by a State guarantee to expire in December 2032.

This fund will be financed with an extra charge billed to final customers based on their level of consumption. Customers whose monthly consumption is less than 350 kWh, and also small companies that consume less than 1,000 kWh are exempt of this additional charge.

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FINANCIAL STATEMENTS ANALYSIS

ENEL CHILE GROUP

AS OF MARCH 31, 2024

República. It will receive a US$ 20 million fiscal contribution every year until its expiration date set on December 31, 2032, in addition to the US$ 15 million contribution made in 2022. The amount accumulated in excess of the US$ 1,350 million fund established in Law No. 21,185 is subject to this new mechanism created by Law No. 21,472.

On March 14, 2023, the National Energy Commission published Exempt Resolution 86 that establishes technical provisions regarding the implementation of Law No. 21,472. On August 9, 2023, the CNE issued Exempt Resolution 334 that amends and restates the text of Exempt Resolution No. 86 indicating, among other issues, certain provisions, procedures, terms and conditions to adequately implement such Law.

The sale of Arcadia Generación Solar S.A.:

  • The spin-off of Enel Green Power Chile S.A., and the resulting creation of Arcadia Generación Solar S.A., with the same shareholders and the same number of shares as Enel Green Power S.A., became effective on January 1, 2023. The new company received all the assets and liabilities of Carrera Pinto, Pampa Solar Norte, Diego de Almagro and Domeyko solar power plants. On October 24, 2023, the sale of Enel Chile entire 99.99% share of Arcadia Generación Solar S.A. to Sonnedix Chile Arcadia SpA and Sonnedix Chile Arcadia Generación SpA for approximately US$556 million became effective.

- 6 -

FINANCIAL STATEMENTS ANALYSIS

ENEL CHILE GROUP

AS OF MARCH 31, 2024

MARKETS IN WHICH ENEL CHILE S.A. OPERATES

Generation segment

We carry out our generation business in Chile through our subsidiaries Enel Generación Chile, and Enel Green Power Chile (hereafter EGP Chile), which combined, have a total

Generation business are diversified, and focus on renewable energy, which represents 77%1 power, 1,978 MW is thermal power that operates using gas, or fuel oil, 1,970 MW is solar power, 903 MW is wind generation power, 83 MW is geothermal installed capacity and 34 MW battery storage systems (BESS).

The following chart summarizes the physical information of our Generation business segment for the period ended March 31, 2024, and 2023:

Energy Sales (GWh)

Market share

Cumulative

(%)

Markets in which participates

Mar-24

Mar-23

% Change

Mar-24

Mar-23

Sistema Eléctrico Nacional (SEN)

8,906

7,900

12.7%

43.8%

40.6%

Distribution & Networks segment

Our Distribution and Networks business is carried out by our subsidiaries Enel Distribución Chile S.A. and Enel Colina S.A.

Enel Distribución Chile is one of the largest electricity distribution companies in Chile in terms of regulated customers, distribution assets, and electricity sales. It operates in a 2,105 square kilometer concession area. The Chilean Government granted the concession agreement to transmit and distribute electricity to 33 counties of the Metropolitan Region, including the concession areas of our subsidiary Eléctrica de Colina S.A. for an unlimited period of time. Its service area, from the Chilean tariff regulation perspective, is considered primarily a densely populated area, making it one of the largest electric utility companies for regulated customers in Chile.

The following chart summarizes the physical information of our Distribution and Networks business segment for the period ended March 31, 2024, and 2023:

1 Includes Renewables + BESS.

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FINANCIAL STATEMENTS ANALYSIS

ENEL CHILE GROUP

AS OF MARCH 31, 2024

Energy Sales

(GWh)

Energy Losses

Cumulative

(%)

Physical Information

Mar-24

Mar-23

% Change

Mar-24

Mar-23

Distribution & Networks Business

3,643

3,602

1.1%

5.4%

5.4%

Other Information

Mar-24

Mar-23

% Change

Number of Customers

2,140,260

2,096,833

2.1%

Customers/Employees

3,677

3,621

1.5%

The following chart presents electricity sales revenue per business segment and customer type for the period ended March 31, 2024, and 2023:

Cumulative Figures

ENERGY SALES

Total Businesses

Structure and Adjustments

Total

(Figures in Million Ch$)

Mar-24

Mar-23

Mar-24

Mar-23

Mar-24

Mar-23

Generation:

734,813

806,178

(113,956)

(112,535)

620,857

693,643

Regulated customers

350,381

416,308

(99,396)

(104,155)

250,985

312,153

Non regulated customers

362,569

357,850

(14,550)

(8,380)

348,019

349,470

Spot market

21,863

32,020

(10)

-

21,853

32,020

Distribution & Networks:

366,150

311,904

(4,904)

-

361,246

311,904

Residential

183,336

160,785

-

-

183,336

160,785

Commercial

111,416

96,554

-

-

111,416

96,554

Industrial

28,155

24,653

-

-

28,155

24,653

Other

43,243

29,912

(4,904)

-

38,339

29,912

Less: Consolidation adjustments

(118,860)

(112,535)

-

-

-

Total Energy Sales

982,103

1,005,547

(118,860)

(112,535)

982,103

1,005,547

Million Chilean pesos variation in Ch$ and %

(23,444)

(2.33%)

-

-

(23,444)

(2.33%)

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FINANCIAL STATEMENTS ANALYSIS

ENEL CHILE GROUP

AS OF MARCH 31, 2024

I. CONSOLIDATED FINANCIAL STATEMENT ANALYSIS

1. INCOME STATEMENT ANALYSIS

Net income attributable to the shareholders of Enel Chile as of March 31, 2024, reached Ch$ 148,567 million, which represents a Ch$ 8,099 million, or 5.8%, increase when compared to the figure for the first quarter of 2023.

The following chart compares the accumulated figures of each item of the income statement as of March 31, 2024, and 2023:

Cumulative Figures

CONSOLIDATED INCOME STATEMENT

Mar-24

Mar-23

Change

% Change

(Million Ch$)

REVENUES

1,052,796

1,196,261

(143,465)

(12.0%)

Sales

1,032,409

1,148,782

(116,373)

(10.1%)

Other operating revenues

20,387

47,479

(27,092)

(57.1%)

PROCUREMENT AND SERVICES

(693,820)

(837,647)

143,828

(17.2%)

Energy purchases

(476,645)

(469,289)

(7,356)

1.6%

Fuel consumption

(98,375)

(136,007)

37,633

(27.7%)

Transportation expenses

(74,069)

(83,670)

9,601

(11.5%)

Other variable procurement and service cost

(44,732)

(148,681)

103,949

(69.9%)

CONTRIBUTION MARGIN

358,976

358,613

362

0.1%

Other work performed by entity and capitalized

10,089

6,673

3,416

51.2%

Employee benefits expense

(43,511)

(39,935)

(3,576)

9.0%

Other fixed operating expenses

(47,527)

(47,106)

(421)

0.9%

GROSS OPERATING INCOME (EBITDA)

278,027

278,245

(218)

(0.1%)

Depreciation and amortization

(71,195)

(55,755)

(15,440)

27.7%

Impairment loss (Reversal) for applying IFRS 9

(3,717)

(6,859)

3,142

(45.8%)

OPERATING INCOME (EBIT)

203,115

215,631

(12,516)

(5.8%)

FINANCIAL RESULT

3,093

(16,901)

19,993

(118.3%)

Financial income

33,194

19,337

13,857

71.7%

Financial expenses

(65,083)

(32,727)

(32,356)

98.9%

Gain (Loss) for indexed assets and liabilities

15,727

2,050

13,677

n/a

Foreign currency exchange differences, net

19,254

(5,561)

24,815

n/a

OTHER NON-OPERATING RESULTS

562

2,392

(1,830)

(76.5%)

Net Income from other investments

-

1,890

(1,890)

(100.0%)

Net Income from sale of assets

-

1,033

(1,033)

(100.0%)

Share of profit (loss) of associates accounted for using the equity

562

(531)

1,093

(205.7%)

method

NET INCOME BEFORE TAXES

206,769

201,122

5,647

2.8%

Income Tax

(45,731)

(47,333)

1,602

(3.4%)

NET INCOME

161,039

153,789

7,249

4.7%

Shareholders of the parent company

148,567

140,468

8,099

5.8%

Non-controlling interest

12,472

13,321

(849)

(6.4%)

Earning per share (Ch$ /share) (1)

2.15

2.03

0.12

5.8%

(1) As of March 31, 2024 and March 31, 2023 the average number of paid and subscribed shares was 69,166,557,220.

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FINANCIAL STATEMENTS ANALYSIS

ENEL CHILE GROUP

AS OF MARCH 31, 2024

EBITDA

Consolidated EBITDA of Enel Chile amounted to Ch$ 278,027 million as of March 31, 2024, a slight 0.1% less than the Ch$ 278,245 million for the same period of 2023. This variation is primarily explained by lower gas sales in the Generation business mainly offset by lower operating costs due to lower gas costs of sales and fuel consumption, both in the Generation business.

Operating revenues, operating costs, personnel, and other expenses that determine our EBITDA, broken down by business segment for the periods ended March 31, 2024, and 2023, are presented below:

Cumulative Figures

EBITDA, BY BUSINESS SEGMENT

Mar-24

Mar-23

Change

% Change

(Figures in Million Ch$)

Generation business revenues

783,744

978,713

(194,969)

(19.9%)

Distribution & Networks business revenues

376,379

329,167

47,212

14.3%

Less: consolidation adjustments and other activities

(107,327)

(111,619)

4,292

(3.9%)

Total Consolidated Revenues

1,052,796

1,196,261

(143,465)

(12.0%)

Generation business costs

(463,103)

(659,103)

196,000

(29.7%)

Distribution & Networks business costs

(331,021)

(286,432)

(44,589)

15.6%

Less: consolidation adjustments and other activities

100,304

107,887

(7,583)

(7.0%)

Total Consolidated Procurement and Services Costs

(693,820)

(837,647)

143,828

(17.2%)

Personnel Expenses

(11,590)

(14,359)

2,769

(19.3%)

Other expenses by nature

(34,772)

(32,818)

(1,954)

6.0%

Total Generation business

(46,363)

(47,177)

814

(1.7%)

Personnel Expenses

(9,277)

(7,096)

(2,181)

30.7%

Other expenses by nature

(16,596)

(15,995)

(601)

3.8%

Total Distribution & Networks business

(25,873)

(23,091)

(2,782)

12.1%

Less: consolidation adjustments and other activities

(8,713)

(10,099)

1,387

(13.7%)

EBITDA, by business segment

Generation business EBITDA

274,278

272,433

1,845

0.7%

Distribution & Networks business EBITDA

19,484

19,644

(159)

(0.8%)

Less: consolidation adjustments and other activities

(15,736)

(13,831)

(1,904)

13.8%

TOTAL ENEL CHILE CONSOLIDATED EBITDA

278,027

278,245

(218)

(0.1%)

Generation business EBITDA

EBITDA of our Generation business segment reached Ch$ 274,278 million as of March 31, 2024, which represents a Ch$ 1,845 million, or 0.7%, increase when compared to the same period of 2023.

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Enel Chile SA published this content on 29 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2024 23:35:57 UTC.