Enel Chile S.A.

Good day, ladies and gentlemen, and welcome to the NL Chili's Q1 2021 Results Conference Call. My name is Buena, and I will be your operator for today. At this time, all participants lying are in the listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. During this conference call, we may make statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect only our current expectations, are not guarantees of future performance, and involve risks and uncertainties. Actual results may differ materially from those anticipated in the forward-looking statements as a result of various factors. These factors are described in the NL Chili's press release reporting in its Q1 2021 results. The presentation accompanying this conference call and NL Chili's annual report form 20-F, including under risk factors. You may access our Q1 2021 results press release and presentation on our website, www.nl.clnr20-f. on the SEC's website, www.sec.gov. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of their dates. MLGD undertakes no obligation to update these forward-looking statements or to disclose any development as such result of which these looking forward statements become accurate except as required by law. I would now like to turn the presentation over to Ms. Isabella Kunis, Head of Investor Relations of NLGID. Please proceed.

Thank you. Good morning to you all, and welcome to NLGID's first quarter 2021 results presentation. Thank you all for joining us today. I hope this finds you well and your family as well. I am Isabella Clemens, Head of Investor Relations. Our presentation and related financial information are available in our website in the Investors section. A replay of the call will be also available. There will be an opportunity to ask questions after the presentation via phone or the chat through the link Ask a Question. Joining me this morning, our CEO, Paolo Palocchi, and our CFO, Giuseppe Ticchiarelli. In the following slides, Paolo will open the presentation with the main highlights on business and operational performance. Then, Giuseppe will walk you through our financial results. Let me remind you that media participants are connected only in listening mode. As always, our ad team will continue to be available to provide you with any detailed information we may need concerning the figures included in this presentation. Thank you all for your attention, and let me now hand over to Paulo. Paulo?

Thank you, Isabella. Good morning, and thanks for joining us. Let me start with the main highlights of the period on slide two. We continue to reinforce our leadership in the newborn market, growing with the newborn capacity addition. We are adding 1.3 gigawatts of renewable projects under construction on an installed base of 1.2 gigawatts already in operation. We recently announced agreement with IM2 Solar to develop 10 distributed small-scale projects adding 75 megawatts by 2022. During the first quarter, we have closed the transaction for the factoring of accounts receivable related to the application of the transitory mechanism for stabilizing electricity prices, totaling 180 million dollars in nominal terms. For the first time since the creation of Enel Chile, the AGM held on the past 28th of March delivery appointed two women for the position of director tackling the diversity at board level. We continue to advance in our commitment to promote inclusion and diversity within our organization. Lastly, the AGM has also approved the dividend proposal to be paid on May 28th, reaching an amount of 3,077 trillion pesos per share, not affecting our shareholder remuneration, with accounting effect related to the impairment made during 2020. Let's now have a look on our decarbonization and renewables developments. We constantly seek new ways to boost the energy transition, generate business opportunities, and push efficiency and innovation in all our business lines. Under this approach, we have developed different projects and initiatives as part of our action to tackle the climate change and to continue promoting the energy transition and the circular economy. As an example, we have connected the first 3 out of 10 small solar plants known in Chile as PMGD as part of the agreement signed with IM2. In the first phase of this project, during 2021 and early 2022, we will secure 75 MW of solar restored capacity directly connected to medium voltage network in the central region of the county, close to high consumption areas. Finally, as we already announced, we are currently developing different innovative projects, always embracing the opportunities of energy transition and the efficiency of our operations, as, for instance, the third scaled wave energy converter in Chile. Now, on our capacity under construction, on page 4. We are finalizing 1.3 gigawatts of capacity under construction. Most of those projects will enter into operation during this year, contributing to the country decarbonization process. This will be a milestone for the energy transition, both for us and for the country. Regarding our solar facilities, during the second half of the year, we will finish the construction of Campo del Sol, Azabache, Domenico, Sol de Lila, Finisterre, and the and part of the first phase of the PNGD project previously mentioned. The construction of those projects has been and continues to be very challenging, considering all the headwinds we are facing since the pandemic outbreak, including lockdown restrictions, delays in environmental licenses, delays on archaeological permits, and most recently, the closure of the country's borders, that prevent specialized technicians from the renewable industry to commission some plants. Now let me give some data on market conditions that drove the price volatility during the first quarter, go on page 5. During the first months of this year, we saw a combinational factor that led to a very unusual situation for the Chilean electricity system. On one hand, the system had less water availability at the beginning of the year, with 25% less potential energy stored in reservoirs. On the other hand, since October 2020, the Chilean market showed a deficiency in natural gas availability due to the interruption of Argentine gas supply, which became more critical at the beginning of 2021. Since the first month of 2021, we put in place an action to improve the availability of gas and started buying additional LNG cargos, first of all, to supply our plants in the center of the country, and then negotiating access to Mequijones LNG terminal to supply our natural gas power plant in the north. During the second half of March, we have started selling natural gas to other generators. Within this framework, we were the generator that maintained the supply of energy for its plants during that period and, at the same time, we operate our agro-facility, achieving a degeneration of 2.1 TWh, contributing to half of the national hydroelectric generation. All these actions allow us to generate with our CGT plants in the country's central areas and to reduce the pressure on marginal prices during that period. Let's move to the next slide where I can explain why we believe that this is not a structural imbalance on the Chilean system and the challenge that we need to push. As you can see on the left side, marginal costs strongly increased during the first quarter, moving from an average of $50 per MWh during first quarter 2020 to $75 per megawatt hour in first quarter 2021. This reflects the condition already presented, primarily the result of hydrological condition and the lower LNG and Argentine gas availability in the market, which led to the system to generate . In this regard, it is believed that renewable growth based on solar and wind is a key to continue to reduce the exposure to win to hydroavailability and commodities. We also believe that the situation we have seen in recent months is not an unusual situation, but rather a short-term one-off condition of the market. In addition, we think that natural gas will continue to play a leading role during the energy transition to maintain and guarantee supply and price stability. In this regard, and that Chile will continue to be a player in this technology. We firmly believe that, as a transitional decision, any new proposal on technical rules should guarantee system security and price stability, since this technology is the enabler of the energy transition which complements the viability of renewable sources. Finally, we have 1.2 gigawatts portfolio of DESS projects in pipeline in different stage for development, ready to be executed. Asudante regulation will be ready for this technology. Battery energy storage systems are the additional option to reach more stability and diversification for the Chilean energy system. Now let's move to electrification. on page 7. During the first quarter of the year, we have signed a partnership with Solimac to develop an infrastructure plan and install charging points in their store throughout the country. It's worth highlighting that we have already installed charging points in its corporate building and distribution center to supply its new last-mile electric trucks. On the same line, thanks to an alliance with Anglo-American, we have finished our first electric charging public station. It features 12 high-power charging points for public and private use under the charging-as-a-service model. This agreement allows Anglo-American to use the terminal for 8 years and supply their fleet of 17 buses that the company uses to transport their staff. Continuing the electrification sustainability strategy along with the Municipality of Peñarolén, the Energy Sustainability Agency and the Ministry of Energy, we have inaugurated five sustainable sports centers using a mix of technology, which not only reduce the carbon footprint, but also generate savings to the municipality. Regarding the smart cities initiatives, with the support of the Secretary of Telecommunications, we are developing the first smart park in the La Florida district, which integrates smart lighting, analytical cameras, Wi-Fi, USB chargers, panic buckles, among other solutions. Now network, page 8. The distributed energy reflects the impact from the extenders of down, which was partially offset by residential consumption. Our investment in visualization and action plans have allowed us to provide more efficiency in the quality of our service and recovery the total loss rate to 5% despite all the logistics restrictions we have faced. Any distribution app reached more than 470,000 downloads, 81% higher than March 2020 cumulative figures. will confirm the improvement of our digital channels to stay in contact with our clients. On the lower left side, the final report on distribution reference model is expected to be published during the second quarter of this year. As a consequence, the regulator technical report that will fix the new tariff definitions should be presented in November. Any discrepancy between the regulator and the company's positions can be challenged in the panel of expert instance. Consequently, we expect the release of the final distribution tariff decree during the first half of 2022. Regarding transmission tariff cycle 2020-2023, we expect the regulator's report fixing the new tariff cycle to be issued in the second quarter, which can also be challenged in the panel of expert instance. Transmission Jarrett's decree is expected to be published between the end of 2021 and early 2022. Let's move to slide 9. Our efforts on digitalization have also allowed us to maintain our collection level at 98%. In that sense, today, 80% of interactions with our clients are made by digital channels. Considering the negative economic effects of the COVID-19 pandemic to support the most vulnerable clients, we have already promoted a DOC payment agreement before the approval of the basic service law. Today, Congress is discussing the condition for the extension of the second version of that law. In our view, the problem was being allowed to grow without looking for long-term impacts on clients. It's time to look for a comprehensive and stable solution that would prevent the most vulnerable families from accumulating an increasingly heavy backpack of debt. The state's participation became fundamental to develop a recovery scheme, with the state itself becoming part of it to help to recover the debts of people who need it most. Thank you, and now I'll hand over to Giuseppe.