Financial Data and Key Metrics Changes - Enel Chile reported a net income of $175 million for Q1 2025, reflecting an 11% increase compared to the previous year [22] - The company's EBITDA for the quarter reached $365 million, showing a positive variation driven by improved energy distribution receivables [24] - The gross debt increased by 2% to $4 billion, with an average cost of debt remaining competitive at 4.9% [25][26] Business Line Data and Key Metrics Changes - Net electricity generation totaled 5.6 terawatt hours, an 8% decrease compared to 2024, primarily due to lower hydro and renewable generation [11] - Energy sales amounted to 7.7 terawatt hours, marking a 9% reduction from the previous year, attributed to lower sales to regulated customers [12] - The company achieved a total net installed capacity of 8.9 gigawatts, with 28% from renewable energy sources and battery energy storage systems [10] Market Data and Key Metrics Changes - The regulatory framework is undergoing significant updates, with expectations for changes in electricity subsidies and ancillary services [13][14] - The VAD 2020-2024 decree was published in April 2025, enabling recovery of outstanding balances from the tariff cycle [16][17] Company Strategy and Development Direction - Enel Chile is focused on strengthening grid infrastructure through a resilience program in response to increasing climate risks [8] - The company aims to modernize the regulatory framework to enhance asset rate resilience and promote innovation and efficiency [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strategic objectives despite a challenging environment, emphasizing the importance of a diversified business model [27] - The company remains committed to advocating for comprehensive distribution reform and modernization of the regulatory framework [27] Other Important Information - The final dividend for the 2024 fiscal year was approved at approximately 4.24 Chilean pesos per share [10] - The company is in a comfortable liquidity position with $640 million in committed lines and $460 million in cash equivalents [26] Q&A Session Summary Question: Additional details on the resilience program for distribution - Management confirmed that the resilience program includes investments in grid quality and digitalization, with increased CapEx compared to the previous year [34][35] Question: CapEx guidance for 2025 - The company maintains the $800 million CapEx guidance for 2025, with most investments expected in the second half of the year [40][41] Question: Impact of new regulatory changes - Management indicated it is too early to assess the financial impact of new regulatory changes, but they expect some benefits from improved rules for ancillary services [45][46] Question: Hydrology expectations for 2025 - The target of 10.7 terawatt hours for hydrology in 2025 remains valid, with further clarity expected by mid-year [56][57] Question: Economic impact of the resilient program - The CapEx for the resilience program is included in the last industrial plan, but estimating its impact on EBITDA is challenging at this stage [66] Question: Gas supply contracts with Argentina - Enel Chile's current gas contracts with Argentina include take-or-pay clauses, ensuring no issues are expected for the remainder of the year [71] Question: Expired regulated contracts - The expired regulated contracts were related to a tender process from 2013, which had prices indexed to commodities [79]

Core Viewpoint - Enel Chile has filed its 2024 annual report on Form 20-F with the United States Securities and Exchange Commission, highlighting its operations in the electricity generation, distribution, and services sectors in Chile [1]. Group 1: Company Overview - Enel Chile operates as an integrated utility company involved in electricity generation, distribution, and services through various subsidiaries and affiliates [1]. - The subsidiaries include Enel Generación Chile S.A., Enel Green Power Chile S.A., Enel Distribución Chile S.A., and Enel X Chile SpA, indicating a diversified approach within the energy sector [1]. Group 2: Report Availability - The 2024 annual report is accessible on Enel Chile's official website in the Investor Relations section and can also be downloaded from the SEC's website [2]. - Hard copies of the 2024 Form 20-F will be available for shareholders free of charge upon request, ensuring transparency and accessibility for investors [2].

[Executive Summary](index=2&type=section&id=EXECUTIVE%20SUMMARY) [Overall Performance](index=2&type=section&id=Overall%20Performance) For the first quarter of 2025, Enel Chile reported a net income of US$175 million, an 11.4% increase year-over-year, primarily driven by reduced operating costs in the Generation segment. EBITDA saw a significant rise of 24.6% to US$365 million, despite a marginal 0.8% decline in operating revenues. The company also commenced commercial operations at the Los Cóndores hydroelectric power plant Q1 2025 Key Financial Metrics (vs. Q1 2024) | Metric | Q1 2025 (US$ million) | Q1 2024 (US$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Net Income (attributable) | 175 | 157 | +11.4% | | Operating Revenues | 1,102 | 1,111 | -0.8% | | Procurement and Services Costs | 651 | 732 | -11.1% | | EBITDA | 365 | 293 | +24.6% | - A key operational milestone was the start of commercial operations at the Los Cóndores run-of-river hydroelectric power plant, adding **153 MW** of capacity[8](index=8&type=chunk) - The financial result shifted from a **US$3 million** profit in Q1 2024 to a **US$26 million** expense in Q1 2025, mainly due to lower financial income and reduced gains from exchange rate differences[8](index=8&type=chunk) [Business Segment Summary](index=2&type=section&id=BUSINESS%20SEGMENT%20SUMMARY) The Generation segment's EBITDA grew 9.2% to US$316 million, benefiting from a 16.2% decrease in costs despite lower energy sales. The Distribution & Networks segment saw a substantial EBITDA increase to US$50 million, driven by a 0.5% rise in physical sales and a 1.4% growth in the customer base Generation Segment Physical Data (Q1 2025 vs. Q1 2024) | Physical Data | Mar-25 | Mar-24 | % Change | | :--- | :--- | :--- | :--- | | Total Sales (GWh) | 8,049 | 8,906 | (9.6%) | | Total Generation (GWh) | 5,581 | 6,051 | (7.8%) | - The Generation segment's performance was boosted by lower energy purchase and fuel consumption costs, leading to a **9.2% EBITDA growth** despite a **9.6% drop** in physical sales due to contract expirations[8](index=8&type=chunk)[12](index=12&type=chunk) Distribution & Networks Segment Physical Data (Q1 2025 vs. Q1 2024) | Physical Data | Mar-25 | Mar-24 | % Change | | :--- | :--- | :--- | :--- | | Total Sales (GWh) | 3,660 | 3,643 | 0.5% | | Number of Customers | 2,169,976 | 2,140,260 | 1.4% | - The Distribution and Networks segment's EBITDA more than doubled to **US$50 million**, compared to **US$21 million** in Q1 2024, due to higher average prices and customer growth[13](index=13&type=chunk) [Financial Summary and Key Developments](index=4&type=section&id=Financial%20Summary%20and%20Key%20Developments) [Financial Summary](index=4&type=section&id=FINANCIAL%20SUMMARY-%20ENEL%20CHILE) As of March 2025, Enel Chile's gross financial debt stood at US$3,993 million, a slight increase from December 2024. The company maintains strong liquidity with US$416 million in cash and US$640 million in undrawn credit lines. It actively manages financial risks through hedging instruments like currency swaps and forwards - Gross financial debt increased by **US$63 million** from December 2024, primarily due to a **US$50 million** credit line disbursement and a **US$13 million** increase in leasing liabilities[14](index=14&type=chunk)[18](index=18&type=chunk) Liquidity Position as of March 2025 | Component | Amount (US$ million) | | :--- | :--- | | Cash and cash equivalents | 416 | | Undisbursed committed credit lines | 640 | | **Total Available Liquidity** | **1,056** | - The company employs a hedging policy to mitigate exchange rate and interest rate risks, utilizing cross currency swaps (**US$211M**), forwards (**US$578M**), and interest rate swaps (**US$286M**)[15](index=15&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk) [Information Relevant to the Analysis](index=5&type=section&id=INFORMATION%20RELEVANT%20TO%20THE%20ANALYSIS%20OF%20THESE%20FINANCIAL%20STATEMENTS) Key developments impacting the financial statements include ongoing regulatory changes related to tariff stabilization laws, which aim to manage electricity prices for regulated customers and ensure generators recover accumulated debt. A significant accounting change occurred on January 1, 2025, when Enel Chile and its generation subsidiary changed their functional and reporting currency from Chilean pesos to U.S. dollars, reflecting the growing influence of the dollar on their business environment - Several laws (**21,185, 21,472, 21,667**) have been enacted to stabilize electricity tariffs for regulated customers, creating mechanisms for generation companies to recover billing differences over time. The **US$1.8 billion** fund from Law 21,472 was reached in February 2024[19](index=19&type=chunk)[20](index=20&type=chunk)[23](index=23&type=chunk)[26](index=26&type=chunk) - Effective January 1, 2025, Enel Chile and its subsidiary Enel Generación Chile changed their functional currency from Chilean pesos to U.S. dollars. This was driven by the fact that free customer contracts, denominated in USD, became the main source of income[25](index=25&type=chunk)[27](index=27&type=chunk) - Due to the currency change, accounting hedges were discontinued, resulting in the recognition of a **Ch$620,164 million** (~**US$657 million**) pre-tax amount as lower revenues at the end of fiscal year 2024[29](index=29&type=chunk)[30](index=30&type=chunk) [Market Operations](index=8&type=section&id=MARKETS%20IN%20WHICH%20ENEL%20CHILE%20S.A.%20OPERATES) [Generation Segment](index=8&type=section&id=Generation%20segment) The Generation segment operates a total net installed capacity of 8,889 MW, with a strong focus on renewable energy, which constitutes 78% of the total. In Q1 2025, the company's energy sales in the Sistema Eléctrico Nacional (SEN) were 8,049 GWh, representing a market share of 40.3%, down from 43.8% in the previous year - Total net installed capacity is **8,889 MW**, with renewable sources (hydro, solar, wind, geothermal) and BESS accounting for **78%** of this capacity[32](index=32&type=chunk) Generation Market Share in SEN (Q1 2025 vs. Q1 2024) | Market | Energy Sales (GWh) Mar-25 | Energy Sales (GWh) Mar-24 | Market Share (%) Mar-25 | Market Share (%) Mar-24 | | :--- | :--- | :--- | :--- | :--- | | Sistema Eléctrico Nacional (SEN) | 8,049 | 8,906 | 40.3% | 43.8% | [Distribution & Networks Segment](index=8&type=section&id=Distribution%20%26%20Networks%20segment) The Distribution and Networks segment, operated by Enel Distribución Chile, is one of the country's largest, serving 33 counties in the Metropolitan Region. In Q1 2025, energy sales grew by 0.5% to 3,660 GWh, and the customer base increased by 1.4% to nearly 2.17 million. Energy losses slightly increased from 5.4% to 5.8% - Enel Distribución Chile operates in a **2,105 square kilometer** concession area in the Metropolitan Region[34](index=34&type=chunk) Distribution Physical Data (Q1 2025 vs. Q1 2024) | Physical Information | Mar-25 | Mar-24 | % Change | | :--- | :--- | :--- | :--- | | Energy Sales (GWh) | 3,660 | 3,643 | 0.5% | | Number of Customers | 2,169,976 | 2,140,260 | 1.4% | | Energy Losses (%) | 5.8% | 5.4% | +0.4 p.p. | [Energy Sales Revenue Breakdown](index=9&type=section&id=Energy%20Sales%20Revenue%20Breakdown) Total energy sales revenue for Q1 2025 was US$998 million, a 3.7% decrease from Q1 2024. The Generation segment's revenue fell to US$595 million, mainly due to lower sales to regulated customers. Conversely, the Distribution & Networks segment's revenue increased to US$403 million, driven by higher sales to residential customers Energy Sales Revenue by Segment (US$ Million, Q1 2025 vs. Q1 2024) | Segment/Customer | Mar-25 | Mar-24 | | :--- | :--- | :--- | | **Generation (Total)** | **595** | **655** | | - Regulated customers | 152 | 265 | | - Non regulated customers | 401 | 367 | | **Distribution & Networks (Total)** | **403** | **381** | | - Residential | 212 | 193 | | - Commercial | 121 | 118 | | **Total Energy Sales** | **998** | **1,036** | [Consolidated Financial Statement Analysis](index=10&type=section&id=I.%20CONSOLIDATED%20FINANCIAL%20STATEMENT%20ANALYSIS) [Income Statement Analysis](index=10&type=section&id=1.%20INCOME%20STATEMENT%20ANALYSIS) Net income attributable to shareholders for Q1 2025 increased by 11.4% to US$175 million, driven by a 24.6% rise in EBITDA to US$365 million. This was achieved through an 11.1% reduction in procurement and service costs, which more than offset a slight 0.8% dip in revenues. However, the financial result turned negative, and income tax expenses increased Consolidated Income Statement Summary (US$ Million) | Item | Mar-25 | Mar-24 | % Change | | :--- | :--- | :--- | :--- | | REVENUES | 1,102 | 1,111 | (0.8%) | | PROCUREMENT AND SERVICES | (651) | (732) | (11.1%) | | GROSS OPERATING INCOME (EBITDA) | 365 | 293 | 24.6% | | OPERATING INCOME (EBIT) | 272 | 214 | 26.8% | | FINANCIAL RESULT | (26) | 3 | (886.5%) | | NET INCOME BEFORE TAXES | 249 | 218 | 14.3% | | NET INCOME (Shareholders) | 175 | 157 | 11.4% | [EBITDA Analysis by Business Segment](index=11&type=section&id=EBITDA%20Analysis%20by%20Business%20Segment) Consolidated EBITDA grew 24.6% to US$365 million. The Generation segment's EBITDA increased 9.2% to US$316 million, primarily due to a 16.2% reduction in operating costs from lower energy purchases and fuel. The Distribution & Networks segment's EBITDA surged 144.9% to US$50 million, driven by higher revenue from increased average sales prices EBITDA by Business Segment (US$ Million) | Business Segment | Mar-25 | Mar-24 | % Change | | :--- | :--- | :--- | :--- | | Generation business EBITDA | 316 | 289 | 9.2% | | Distribution & Networks business EBITDA | 50 | 21 | 144.9% | | **TOTAL ENEL CHILE CONSOLIDATED EBITDA** | **365** | **293** | **24.6%** | - Generation segment costs fell by **US$79 million (16.2%)**, mainly from lower energy purchases (**US$48M**), reduced transportation expenses (**US$17M**), and lower fuel consumption costs (**US$9M**)[40](index=40&type=chunk)[41](index=41&type=chunk) - Distribution & Networks segment revenues increased by **US$36 million (9.2%)**, primarily due to higher average sales prices, which boosted energy sales revenue by **US$22 million**[43](index=43&type=chunk) [Depreciation, Amortization and Impairment](index=13&type=section&id=Depreciation,%20Amortization%20and%20Impairment) Depreciation, amortization, and impairment expenses for Q1 2025 totaled US$93 million, an increase of US$14 million from the previous year. The rise is attributed to higher depreciation from new renewable energy plants coming online and increased impairment losses on accounts receivable in the Distribution segment - Total depreciation, amortization, and impairment increased by **US$14 million** year-over-year[44](index=44&type=chunk) - The increase was driven by **US$8 million** in higher depreciation from new renewable plants and **US$5 million** in higher impairment losses on receivables from residential customers[46](index=46&type=chunk) [Non-Operating Income](index=14&type=section&id=Non-Operating%20Income) The consolidated financial result swung to a loss of US$26 million in Q1 2025 from a US$3 million profit in Q1 2024. This US$29 million negative variation was caused by a US$20 million drop in financial income and an US$11 million decrease in gains from exchange rate differences, partially offset by US$12 million in lower financial expenses - Financial income decreased by **US$20 million**, mainly due to lower interest earned on accounts receivable from electricity distribution companies[47](index=47&type=chunk) - Financial expenses decreased by **US$12 million**, helped by lower average financial debt and optimized payment schedules with suppliers[48](index=48&type=chunk) - Net income from exchange rate differences fell by **US$11 million**, and income from indexation dropped by **US$9 million**, both largely due to the change in functional currency[49](index=49&type=chunk)[50](index=50&type=chunk) [Corporate Income Taxes](index=16&type=section&id=Corporate%20income%20taxes) Corporate income tax expense for Q1 2025 was US$63 million, a US$15 million increase compared to the same period in 2024. This rise is primarily due to higher pre-tax profits and the tax impact of changing the accounting currency to U.S. dollars - The tax expense increased by **US$15 million**, with **US$12 million** attributed to higher company profits and **US$3 million** due to the elimination of price-level restatement following the change in functional currency[51](index=51&type=chunk) [Performance of Main Financial Ratios](index=17&type=section&id=Performance%20of%20main%20financial%20ratios) As of March 31, 2025, the company's liquidity and leverage ratios improved compared to year-end 2024. The current ratio increased to 1.14, and the leverage ratio (Total Liabilities / Total Equity) decreased to 1.31. Profitability, measured by operating income to revenue, improved to 24.6%. However, ROE and ROA declined, significantly impacted by the one-off accounting charge from discontinuing currency hedges at the end of 2024 Key Financial Ratios | Ratio | Unit | Mar-25 | Dec-24 | Mar-24 | | :--- | :--- | :--- | :--- | :--- | | Liquidity (Current Ratio) | Times | 1.14 | 1.00 | - | | Leverage (Liabilities/Equity) | Times | 1.31 | 1.39 | - | | Financial expenses coverage | Times | 9.04 | - | 9.24 | | Op. income / Op. Revenues | % | 24.6% | - | 19.3% | | ROE | % | 3.5% | - | 11.2% | | ROA | % | 1.7% | - | 4.5% | - Liquidity improved, with the current ratio rising to **1.14** from **1.00** at year-end 2024, mainly due to a decrease in trade accounts payable[54](index=54&type=chunk) - Return on Equity (ROE) fell to **3.5%** from **11.2%**. Excluding the extraordinary loss of **US$657 million** from discontinuing hedges in 2024, the ROE would have increased to **12.9%**[56](index=56&type=chunk) [Balance Sheet Analysis](index=19&type=section&id=2.%20BALANCE%20SHEET%20ANALYSIS) As of March 31, 2025, total assets increased slightly to US$12,851 million. The key change was a US$118 million rise in current assets, driven by higher trade receivables and cash. Total liabilities decreased by US$144 million, primarily from a significant reduction in current trade payables. Consequently, total equity grew by US$229 million, bolstered by the period's net income Balance Sheet Summary (US$ Million) | Item | Mar-25 | Dec-24 | Change | | :--- | :--- | :--- | :--- | | Total Assets | 12,851 | 12,765 | 86 | | Total Liabilities | 7,276 | 7,419 | (143) | | Total Equity | 5,575 | 5,345 | 230 | [Assets](index=19&type=section&id=Assets) Total assets grew by US$86 million to US$12,851 million. Current assets increased by US$118 million, mainly due to a US$79 million rise in trade receivables (related to tariff stabilization laws) and a US$30 million increase in cash. Non-current assets saw a minor decrease of US$32 million, as additions to Property, Plant, and Equipment were offset by transfers of long-term receivables to current assets - Current Assets increased by **US$118 million**, driven by higher trade receivables (**+US$79M**) and cash (**+US$30M**)[58](index=58&type=chunk)[59](index=59&type=chunk) - Non-Current Assets decreased by **US$32 million**. A **US$42 million** increase in Property, Plant and Equipment was more than offset by a **US$91 million** decrease in non-current trade receivables, which were reclassified to current[60](index=60&type=chunk) [Liabilities and Equity](index=21&type=section&id=Liabilities%20and%20Equity) Total liabilities decreased by US$144 million. Current liabilities fell by US$180 million, primarily due to a US$233 million reduction in trade and other payables. Non-current liabilities increased by US$36 million, mainly from a new US$50 million bank loan. Total equity rose by US$229 million to US$5,575 million, reflecting the US$175 million net income for the period and positive translation reserve adjustments - Current Liabilities decreased by **US$180 million**, largely due to a **US$233 million** drop in trade and other current accounts payable[62](index=62&type=chunk)[63](index=63&type=chunk) - Non-Current Liabilities increased by **US$36 million**, mainly due to a new **US$50 million** loan from Corporación Andina de Fomento (CAF)[63](index=63&type=chunk)[64](index=64&type=chunk) - Total Equity increased by **US$229 million**, explained by **US$175 million** in retained earnings from the period's profit and a **US$42 million** positive variation in other reserves[64](index=64&type=chunk) [Main Cash Flows](index=23&type=section&id=3.%20MAIN%20CASH%20FLOWS) For Q1 2025, the Group generated a net positive cash flow of US$1 million, a significant improvement from the US$142 million outflow in Q1 2024. Cash from operating activities was US$152 million. Investing activities resulted in a US$113 million outflow, significantly less than the prior year due to lower capital expenditures. Financing activities had a net outflow of US$38 million, reflecting dividend payments partially offset by a new loan Net Cash Flow Summary (US$ Million) | Cash Flow Activity | Mar-25 | Mar-24 | Change | | :--- | :--- | :--- | :--- | | From Operating Activities | 152 | 180 | (28) | | From Investing Activities | (113) | (242) | 129 | | From Financing Activities | (38) | (81) | 42 | | **Total Net Cash Flow** | **1** | **(142)** | **143** | - Cash flow from investing activities saw a **US$129 million** improvement (less outflow) compared to Q1 2024, mainly due to a **US$154 million** reduction in disbursements for property, plant, and equipment[68](index=68&type=chunk) - Cash flow from financing activities improved by **US$42 million**, driven by a new **US$50 million** loan, which helped offset **US$70 million** in dividend payments[69](index=69&type=chunk)[70](index=70&type=chunk) [Risk Analysis](index=25&type=section&id=II.%20MAIN%20RISKS%20ASSOCIATED%20WITH%20THE%20ACTIVITY%20OF%20ENEL%20CHILE%20S.A.%20GROUP) [Main Risks Associated with the Activity](index=25&type=section&id=Main%20Risks%20Associated%20with%20the%20Activity) The Group's primary risks stem from its operating environment. These include potential adverse effects from changes in government regulations and environmental laws, which could increase expenses or delay projects. As a hydroelectric generator, its operations are dependent on hydrological conditions, with droughts posing a significant risk. The company also faces financial risks from unmanaged exposure to interest rates, commodity prices, and foreign exchange rates - The business is subject to extensive government and environmental regulations; changes could adversely affect operations and financial results[73](index=73&type=chunk)[74](index=74&type=chunk) - Hydroelectric generation depends on hydrological conditions, and droughts could negatively impact results. The company mitigates this by not contractually committing **100%** of its generation capacity[75](index=75&type=chunk) - Financial performance can be negatively affected if exposure to fluctuations in interest rates, commodity prices, and foreign exchange rates is not managed effectively[76](index=76&type=chunk) [Risk Management Policy](index=26&type=section&id=RISK%20MANAGEMENT%20POLICY) Enel Chile follows a comprehensive risk management policy aligned with its parent company, Enel S.p.A. The policy employs a three-lines-of-defense model and covers financial, strategic, operational, and compliance risks. The company actively manages financial risks: interest rate risk is mitigated by maintaining a high proportion of fixed-rate debt (88%); foreign exchange risk is managed through hedging and aligning debt currency with cash flows, aided by the recent change to USD as the functional currency; commodity risk is handled via hedging instruments for fuel; and liquidity risk is managed by maintaining sufficient cash and committed credit lines [General Policy and Structure](index=26&type=section&id=General%20Policy%20and%20Structure) The company adheres to the Internal Risk Management Control System (SCIGR) of its parent, Enel S.p.A., which is approved by the Board. It uses a three-lines-of-defense model (Business/Internal Controls, Risk Control, Internal Audit) and a risk taxonomy covering 6 macro-categories. Risk management is decentralized, with process managers responsible for risk treatment - The risk management framework follows guidelines from the parent company, Enel S.p.A., and is approved annually by Enel Chile's Board of Directors[78](index=78&type=chunk)[79](index=79&type=chunk) - A three-lines-of-defense model is employed: 1) Business and Internal Controls, 2) Risk Control, and 3) Internal Audit[81](index=81&type=chunk) [Financial Risks (Interest Rate, Foreign Exchange, Commodity, Liquidity, Credit)](index=26&type=section&id=Financial%20Risks) The company manages interest rate risk by keeping 88% of its debt at a fixed rate. Foreign exchange risk is minimized by balancing asset and liability currencies with cash flows, a process simplified by the 2025 shift to the USD as the functional currency. Commodity price risk for fuels like gas and coal is mitigated through hedging contracts. Liquidity risk is addressed by maintaining US$415 million in cash and US$640 million in committed credit lines. Credit risk from commercial receivables is considered low due to short collection terms and active monitoring - Interest Rate Risk: **88%** of total gross debt is at a fixed interest rate as of March 2025 to reduce volatility[83](index=83&type=chunk)[86](index=86&type=chunk) - Foreign Exchange Risk: Minimized by balancing flows in non-functional currencies. The change of functional currency to USD on Jan 1, 2025, was a key strategic move in this regard[88](index=88&type=chunk)[89](index=89&type=chunk) - Commodity Risk: The company uses active hedges for Brent, Henry Hub gas, and coal to mitigate price volatility on its generation costs and revenues[90](index=90&type=chunk)[93](index=93&type=chunk) - Liquidity Risk: As of March 31, 2025, the Group's liquidity consists of **US$415 million** in cash and **US$640 million** in long-term committed credit lines[96](index=96&type=chunk) [Risk Measurement](index=29&type=section&id=Risk%20Measurement) The company quantifies its financial risks. The estimated impact of exchange rate fluctuations for the next quarter is projected at US$42 million, considering the new USD functional currency. For interest rate risk, a 25 basis point change in the SOFR rate would impact the monthly financial expense by approximately US$42,000 - The estimated potential impact of exchange rate fluctuations on the income statement for the next quarter is **US$42 million**[101](index=101&type=chunk) - A **25 basis point (0.25%)** change in the SOFR interest rate would alter the monthly financial expense by approximately **US$42,000**[103](index=103&type=chunk)[107](index=107&type=chunk) [Other Risks (Cross-Default Provisions)](index=30&type=section&id=Other%20Risks%20(Cross-Default%20Provisions)) A portion of the company's financial debt is subject to cross-default provisions. Non-payment of any debt exceeding US$150 million could trigger an acceleration of other liabilities, including its Yankee Bonds (if demanded by 25% of holders). However, there are no clauses that would trigger debt prepayment based on changes in credit ratings - Certain credit facilities and Yankee Bonds contain cross-default provisions. A default on any debt exceeding **US$150 million** could lead to the acceleration of other debts[104](index=104&type=chunk)[105](index=105&type=chunk)[110](index=110&type=chunk) - There are no credit-agreement clauses that would trigger debt prepayment due to a downgrade in the company's credit rating[111](index=111&type=chunk) [Asset Valuation](index=32&type=section&id=III.%20BOOK%20VALUE%20AND%20ECONOMIC%20VALUE%20OF%20ASSETS) [Book Value and Economic Value of Assets](index=32&type=section&id=Book%20Value%20and%20Economic%20Value%20of%20Assets) The company's asset values are determined according to International Financial Reporting Standards (IFRS). Property, plant, and equipment are valued at acquisition cost less accumulated depreciation and impairment. Goodwill is not amortized but is tested for impairment annually. The company regularly evaluates all assets for impairment to ensure their recorded value does not exceed their recoverable value - Property, plant, and equipment are valued at cost, net of accumulated depreciation and impairment losses, with their useful life reviewed periodically[113](index=113&type=chunk) - Goodwill is not amortized but is tested for impairment at the end of each accounting period to ensure its recoverable value is not below its recorded cost[114](index=114&type=chunk) - The company performs regular impairment tests on assets if there is any indication of a loss, estimating the recoverable value of the asset or its cash-generating unit[115](index=115&type=chunk)

Debt Management - As of December 31, 2024, the total outstanding debt amounts to 3,914,828 million Ch$ with a fair value of 3,878,336 million Ch$[672] - 89% of the total outstanding debt had fixed interest rates, while 11% was subject to variable interest rates as of December 31, 2024[679] - The weighted average interest rate for fixed-rate debt is 4.6%, and for variable-rate debt, it is 5.3% as of December 31, 2024[672] - The total fixed-rate debt as of December 31, 2024, is 2,998,702 million Ch$ with a fair value of 2,944,801 million Ch$[672] - The company plans to manage interest rate risk using derivatives to minimize the average cost of debt and reduce financial volatility[678] Risk Management - The company held hedges for 551 kBbl of Brent oil purchases and 217 kBbl of sales to be settled as of December 31, 2023[671] - The company has a commercial policy to mitigate risks during extreme drought conditions, aligning sale commitments with generation capacity[667] - The company continually evaluates hedging strategies to mitigate the impact of commodity price volatility on profits[669] - The carrying value of financial instruments hedging foreign exchange risk totals 235,894 million Ch$ with a fair value of (1,215) million Ch$ as of December 31, 2024[686] - As of December 31, 2023, the total carrying value of financial instruments hedging foreign exchange risk for interest-bearing debt is Ch$405,564 million, with a fair value of Ch$12,131 million[689] - The expected maturity dates for the hedging instruments are primarily in 2024 (Ch$338,337 million) and 2025 (Ch$67,227 million) with no amounts due in subsequent years[689] - The fair value of hedging instruments was calculated based on discounted future cash flows, reflecting current discount rates and associated risks[689] Currency Transition - The company transitioned its functional currency from Chilean peso to U.S. dollar effective January 1, 2025[685] - Effective January 1, 2025, the company will change its functional currency to the U.S. dollar[690] Forward-Looking Information - The company has provided a safe harbor statement regarding forward-looking information in its market risk disclosures[691]

Company Overview - Enel Chile (ENIC) is headquartered in Santiago and operates in the Utilities sector, with a price change of 14.93% year-to-date [3] - The company currently pays a dividend of $0.04 per share, resulting in a dividend yield of 6.76%, significantly higher than the Utility - Electric Power industry's yield of 3.22% and the S&P 500's yield of 1.54% [3] Dividend Performance - Enel Chile's annualized dividend of $0.22 has increased by 5.8% from the previous year, with an average annual increase of 79.14% over the last five years [4] - The current payout ratio is 34%, indicating that the company paid out 34% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, Enel Chile anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 at $0.34 per share, reflecting an expected increase of 183.33% from the previous year [5] Investment Appeal - Enel Chile is considered a compelling investment opportunity due to its attractive dividend yield and strong Zacks Rank of 2 (Buy), making it appealing for income investors [7]

Financial Data and Key Metrics Changes - The hydro portfolio saw a 12% increase in generation compared to the previous year, attributed to higher reservoir levels and favorable weather conditions [9][15] - Adjusted EBITDA for 2024 reached $1.421 billion, reflecting a $320 million increase from 2023, driven by improved energy sales and pricing [58][45] - Net income for 2024 amounted to $622 million, a 22% increase from the previous year, primarily due to the improved EBITDA [61] Business Line Data and Key Metrics Changes - Net electricity generation totaled 24.6 terawatt hours in 2024, exceeding 2023 production by 2%, mainly due to higher hydro and renewable generation [22] - Energy sales increased by 8% to 33.4 terawatt hours in 2024, driven by higher sales to both regulated and free clients [23] - The distribution business faced a $20 million fine due to service disruptions from extreme weather events, impacting financial results [27][57] Market Data and Key Metrics Changes - The average residential consumer in Santiago experienced a 12% increase in regulated tariffs, influenced by the integration of a client protection mechanism [38] - The company secured contracts with Argentinean natural gas providers for 2025, enhancing supply stability [16] Company Strategy and Development Direction - The company aims to diversify its portfolio by increasing exposure to battery energy storage and renewable projects, with a focus on hybrid projects [18][95] - A dual sourcing strategy for natural gas is in place to ensure security of supply and flexibility in trading opportunities [17] - The company is advocating for regulatory reforms to enhance asset resilience and optimize the value of its distribution network [35][73] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a volatile environment and capitalize on new opportunities [72] - The company is preparing for future climate events and has implemented measures to improve response to such occurrences [30][34] - The regulatory framework is expected to evolve, potentially improving remuneration rates and incentives for resilience [36][37] Other Important Information - The company changed its functional currency in Q4 2024, resulting in a non-cash impact of $657 million at the EBITDA level [12][49] - A voluntary compensation agreement of approximately $80 million was established for customers affected by power outages [29] Q&A Session Summary Question: Regarding the recent blackout in Chile, will distribution companies be liable for penalties? - Management clarified that the blackout was caused by the transmission system, and the distribution company is not liable for penalties [82] Question: Is the hydro output assumption for 2025 conservative? - Management stated that the assumption is based on a 10-year average to account for hydrology volatility, and further updates will be provided in May or June [84] Question: What is the strategy for battery projects? - The company confirmed that the batteries are hybrid, integrated with renewable projects, and expects double-digit IRR on battery projects [85] Question: What is the status of the $20 million fine and potential revocation of the concession? - Management indicated that the revocation process has not started, and no notification has been received regarding the concession [92] Question: What is the CapEx plan for 2025? - The company plans to invest approximately $800 million in 2025, focusing on new battery energy storage projects [103] Question: What is the expected additional renewable capacity in 2025? - New projects are expected to come online in the second half of 2025, with no specific delays anticipated [113]

Group 1 - The core investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective, rather than market-driven dynamics [1] - The articles emphasize understanding the long-term earnings power of companies and the competitive dynamics within their industries [1] - The majority of recommendations will be holds, indicating a cautious approach to market conditions, with only a small fraction of companies deemed suitable for purchase at any given time [1] Group 2 - The articles aim to provide valuable information for future investors and introduce a healthy skepticism towards a generally bullish market [1] - There is a clear distinction made between the author's opinions and professional investment advice, highlighting the importance of conducting due diligence [2][3]

Core Viewpoint - ENEL CHILE SA (ENIC) is identified as a strong value stock currently, with favorable valuation metrics indicating it may be undervalued in the market [4][7]. Valuation Metrics - ENIC has a P/E ratio of 8.47, significantly lower than the industry average of 15 [4]. - The stock's Forward P/E has fluctuated between 7.96 and 12.84 over the past year, with a median of 11.10 [4]. - The P/S ratio for ENIC is 0.82, compared to the industry's average P/S of 2.08, suggesting a strong valuation relative to sales [5]. - ENIC's P/CF ratio stands at 4.48, which is attractive when compared to the industry's average P/CF of 11.45 [6]. Earnings Outlook - The combination of ENIC's strong earnings outlook and its favorable valuation metrics supports the conclusion that it is an impressive value stock at this time [7].

Group 1 - The article focuses on providing insightful analysis on foreign equities, particularly in emerging markets, to aid informed investment decisions [1] - The author has a background in research and operations management, contributing to various financial platforms [1] Group 2 - There is no disclosure of any stock, option, or similar derivative positions in the companies mentioned, indicating an unbiased perspective [2] - The article does not provide any recommendations or advice regarding investment suitability for particular investors [3]

Core Viewpoint - Enel Chile S.A. is a significant player in the Chilean energy utility sector, presenting potential investment opportunities for income investors due to its dividends and current valuation metrics [1][8]. Company Overview - Enel Chile is involved in electricity generation and distribution, owning major subsidiaries including Enel Generación Chile S.A. (93.55%), Enel Green Power Chile S.A. (99.99%), and Enel Distribución Chile S.A. (99.09%) [2]. Financial Performance - The company has shown resilience post-economic slowdown, with projected revenue of $4.6 billion and earnings of 42¢ for the current year, resulting in a low P/E ratio of 6.24 compared to the sector median of 19.19 [5][6]. - Historical revenue figures indicate growth from $3.0 billion in 2021 to an estimated $4.6 billion in 2022, with operating income and profit also reflecting significant increases [6]. Asset and Liability Management - Enel Chile holds $597 million in cash and equivalents, with total assets amounting to $12.5 billion and total liabilities of $7.5 billion, indicating a solid financial position despite a current ratio below 1.0 [3][4]. Valuation Metrics - The company is trading at a price/book ratio of 0.73, significantly lower than the sector median of 1.80, suggesting it may be undervalued relative to its peers [4]. Dividend Policy - Enel Chile pays dividends semi-annually, with a total yield of 9.46% based on recent payments of 3.4¢ in January and 21.4¢ in May, although the dividend payout has been inconsistent [7]. Market Considerations - The company's performance is closely tied to the Chilean economy and commodity prices, particularly copper, which can impact profitability and stock performance [5][8]. - Currency fluctuations, particularly the value of the Chilean peso against the US dollar, may affect dividend payouts for international investors [8].