ENIC

Enel Chile S.A. Financial Summary (Form 6-K)

Business Context and Reporting Period

This filing covers the consolidated financial results for Enel Chile S.A. for the period ended June 30, 2024, and the second quarter (Q2) of 2024. The company operates in Chile through Generation and Distribution & Networks business segments. As of June 30, 2024, the Group's total net installed capacity was 8,728 MW, with 77% derived from renewable energy sources (hydro, solar, wind, geothermal, and battery storage).

Key Financial Metrics

Amounts are expressed in millions of Chilean Pesos (Ch$) unless otherwise noted.

Note: Gross financial debt as of June 2024 was US$ 4,750 million. Liquidity consisted of US$ 305 million in cash and US$ 750 million in undisbursed committed credit lines.

Material Changes vs. Prior Period

• Profitability Surge: Net income attributable to shareholders increased 120.5% year-over-year (YoY) to Ch$ 250,824 million. Q2 2024 turned a Ch$ 26,726 million loss in Q2 2023 into a Ch$ 102,258 million profit.
• Revenue Growth: Operating revenues rose 8.0% cumulatively and 33.3% in Q2, driven by higher energy sales in both Generation and Distribution segments, partially offset by lower gas sales.
• EBITDA Expansion: Consolidated EBITDA grew 74.3% cumulatively and 542.9% in Q2. The Generation segment EBITDA increased 78.9% cumulatively due to a more efficient generation mix (higher hydro, wind, solar) and lower fuel costs.
• Cost Dynamics: Procurement and services costs decreased 4.6% cumulatively due to lower fuel consumption and gas commercialization costs. However, Q2 costs rose 8.3% due to higher energy purchase costs in the Distribution segment.
• Financial Expenses: Financial expenses increased 38.1% cumulatively, primarily due to higher interest expenses on bonds/loans and losses from exchange rate differences in Q2.

Guidance, Outlook, and Risks

Regulatory Environment: The company is navigating significant regulatory changes, including Law No. 21,667 (enacted April 2024), which allows tariffs for regulated customers to gradually increase to reflect real energy costs and establishes mechanisms to recover accumulated debt from previous stabilization laws (PEC and MPC). A new fund of US$ 5,500 million was added to the MPC fund.

Operational Outlook: Enel Chile added 250 MW of net capacity in H1 2024 (Don Humberto PV plant and BESS systems). The company continues to focus on renewable energy, which now represents 77% of its capacity.

Risks and Contingencies:

• Regulatory Risk: Changes in tariff regulations or environmental laws could adversely affect operations and income.
• Hydrological Risk: Operations depend on hydrological conditions; droughts could negatively impact generation results.
• Financial Risk: Exposure to interest rate fluctuations, commodity prices, and foreign exchange rates. The company utilizes hedging instruments (swaps, forwards) to mitigate these risks.
• Cross-Default Provisions: Certain debt facilities contain cross-default clauses that could trigger acceleration of debt if specific non-payment thresholds (e.g., US$ 150 million) are breached.

Investor Verification Checklist

• Regulatory Recovery: Verify the timeline and certainty of recovering accumulated receivables under the new Tariff Stabilization Law (Law No. 21,667) and the MPC fund.
• Debt Structure: Confirm the impact of the US$ 4,750 million gross debt and the 5.0% average cost of debt on future interest coverage ratios.
• Hydrological Exposure: Assess the sensitivity of future earnings to hydrological conditions given the significant reliance on hydroelectric generation.
• Exchange Rate Volatility: Monitor the impact of Chilean Peso fluctuations on financial results, particularly regarding indexed assets/liabilities and foreign currency debt.
• Asset Sales: Review the final accounting treatment and cash flow impact of the Arcadia Generación Solar S.A. sale completed in October 2023.