Enel Chile S.A.

Good day, ladies and gentlemen, and welcome to the NA Chile Q2 and first half 2021 results conference call. My name is Felita, and I will be your conference operator today. 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 risk 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 a Chili's press release reporting in Q2 and first half 2021 results. the presentation accompanying this conference call, and in a Chile annual report on Form 20F, including on the risk factors, you may access our Q2 and first half 2021 results press release and presentation on our website, www.na.cl, and our 20F 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. NL Chile undertakes no obligation to update these forward-looking statements or disclose any development as a result of which these forward-looking statements become inaccurate except as required by law. I would now like to turn the presentation over to Mrs. Isabella Klein, Head of Investor Relations of N.A. Chile. Please proceed.

Thank you, Felita. Buenos dias, good morning, and welcome to N.A. Chile's second half of 2021 results presentation. Thanks to you all for joining us today. I am Isabella Klein, the Head of Investor Relations. Let me remind you that our presentation and related financial information are available on our website, www.nl.cl, in the investor sections, and in our app, Investors. In the final of the presentation, there will be an opportunity to ask questions via phone or chat through the link, Ask a Question. Joining me this morning are our CEO, Paolo Palotti, and our CFO, Giuseppe Turchiarelli. In the following slides, Paulo will open the presentation with the main highlights on strategy and operation performance. Then, Giuseppe will walk you through our financial results. A replay of the call will also be available, and always, our REL team will continue to be available to provide you with any detailed information you may need concerning the figures included in this presentation. Let me also remind you that media participants are connected only in listening mode. Thank you all for your attention, and now let me hand over to Paolo. Paolo?

Thank you, Isabella. Good morning, and thanks for joining us. EnerChile is consolidating its leading position in renewables and is driving the energy transition. We are conscious about the importance of those advances in the energy transition in a country like Chile, where resources and technology may support the implementation of a true path towards the fight to climate change and the expansion of the use of electricity in the industry, in the cities, at home, transforming the client, the citizen, quality of life. This is an effort with multiple benefits that also requires a quick reaction by the several authorities involved to truly understand and support those changes. During this quarter, we are advancing the construction of more than 1.2 gigawatt of renewable capacity in seven projects that are part of the 2.4 gigawatt additional renewables. that we will add during the 2021-2023 period. As you will see in the results slides presented by Giuseppe, our 2021 ARF results have been impacted by non-structural elements like local gas availability and commodities hiking prices. Looking at sustainability commitment, Recently, we have been included for the first time in the Standard & Poor's IPSA ESG Title Index. Launched earlier this year by Santiago Stock Exchange, the Standard & Poor's IPSA ESG Title Index, and achieved it now, one of the 27 companies added and the first with local operation on this index, with rebalancing executed during July 21. Also, I would like to highlight The new FUZI Russell score for our company recently announced. We have been achieving 4.0 points or a total of 5.0 versus 3.4 in the previous year. These recognitions reflect our sustainability strategy and our commitment towards just energy transition. We are growing along our strategy together with our clients' energy requirements. In addition to supply electricity via our retail operations, NLX has signed several agreements with the private sector, mainly mining companies as a starting point, and then service companies to promote electric mobility and energy efficiency solutions. Additionally, we continue to support the decontamination of the cities, participating in the implementation of several programs to push on the adoption of electric heating system in exchange for more contaminated ones. Finally, consistent with our strategy, we have signed an agreement with Banco Santander for our first SDG link instrument. This law is linked directly to tackle the climate action, the SDG 13, and is related to the reduction of our direct CO2 emissions by 2023. And El Chile is the first local utility in securing this kind of instrument linked to United Nations SDGs. Now on our capacity under construction, page number four. Let me give you some update on our project under construction as important pillar for our positioning in the market and for the implementation of the energy transition. As already commented with you, The last 12-15 months have been quite complex in managing the construction of the new plant. The effects of the pandemic, causing lockdown restrictions and closure of the country's borders, jointly with the initial delays on archaeological permits caused by bureaucracy and LECO personnel, require in some cases reschedules of our project timeline. Notwithstanding the above, We continue to advance on constructing our renewable portfolio. As you can see in the chart, considering the capacity under construction, by the end of this year, we will put in operation a significant percentage of that amount. Let's move to slide number five. Our clients are requiring our support to be provided with an aggregate of services related to the use of the green energy and to the decontamination of their activities. We have signed different partnerships and agreements to promote sustainable transportation and more in general innovative services in the use of the energy. A recent example is the agreement with Falabella Group, one of the largest retailers in Latin America. after a private tender and have been awarded to sell energy to their operations and at the same time to incorporate more than 500 electric charging points through their country. With those agreements, we are providing a complete solution to our clients, coping with their path to decarbonization. At the same time, We have increased NLX market share and enhanced its leadership in the energy efficiency and electromobility in the country. Finally, in line of contributing to the development of smart cities, with NLX again, we have developed security projects like monitoring and surveillance. This kind of project includes security cameras, automatic reading countries for car patent, and the laying of optical fiber that integrates it. Today, we will have more than 1,200 security cameras installed in Chile, complementing the plans of citizen security and contribute to preventing crimes and road infraction. Customers are becoming more aware of the sustainability and the efficient use of the energy. NLX is our client's first choice and agent of change. Now on page number six. With reference to our network during the second quarter, we have seen a partial recovery in the energy demand compared to the previous period. As a result, the aggregated energy distribution reached 7.9 , increasing 2% versus last year's period. We have increased the quality of our service and reduced our distribution loss rate from 5.21% to 5%, despite all the challenges we are facing. With reference to our actions towards the digitization of our processes, NL Distribution app reached more than 494,000 downloads, 30% higher than June 2020 cumulative figures. Our digital interaction has increased to 86% from 75% in the same period of the last year. On regulatory side, the final report on the distribution reference model shall be published in the following weeks. And the following regulatory report is expected to be issued by November 21. As we have mentioned, any discrepancy between regulators and companies' positions can be challenged in the expert panel instance. We expect that the regulator will release the final distribution during 2022. Regarding transmission tariff cycle 2020-2023, the regulator's report fixing the new tariff cycle will be published during the next weeks. It could be challenged in the expert panel instance, depending on the results of the several comments presented by different companies during the evaluation phase. we are expecting that the transmission tax decree to be published at the end of this year or very early 2022. On slide number seven, the application of the basic service law is affecting the level of OSDU debt. We are continuing to push in providing alternatives of payment to our clients and to promote the adoption of payment agreements. By June 21, We have finalized more than 62,000 payment agreements, of which 50% correspond to basic service law, and the other half corresponds to voluntary agreements, promoted by . Due to our efforts, our collection level managed with a slight improvement in second quarter 21. As of the end of June, the net overdue debt reached 180 million U.S. dollars, representing more than 543,000 clients, 20% increase versus last year. On a monthly basis, we have factorized around 32 million U.S. dollars, supporting part of our liquidity in the period. In our view, as already commented with you, the level of overdue accounts is going to materially increase during the next months. and will not be sustainable in the long term for the most vulnerable families once the condition of payments will come to normality. In that sense, a solution involving the state is crucial in this process. Now, I will hand over to Giuseppe. Giuseppe, it's your turn.

Giuseppe Santangelo. Thanks, Paolo. Let me start with a summary of our financial highlights on slide nine. which we will go through in detail in the following slides. But before starting with the presentation, let me explain the extraordinary effects of the period. For the first half of 2021, we have adjusted the EBITDA and the net income, considering the effects arising from the cold stock impairment associated to Bocamina 2, and the voluntary retirement program that the company has offered to the employees, which were nearly to the retirement age. The cold stock impairment and the voluntary retirement program had an aggregate effect of $46 million in the first half 2021 EBITDA and $31 million at the bottom line. In the second quarter, this effect amounted to $31 million in EBITDA and $21 million in the group net income. For the previous year, we have adjusted the figures by the cold stock impairment of $17 million in EBITDA, and the net effect of the impairment of Bocamina 2 of $672 million at the bottom line. All the details are described in the bottom of the slide. Now, let's start with our CapEx allocation, out of which 96% is linked to the SDG on slide 10. First off, 2021 CAPEX reached $510 million, mainly devoted to the construction of the new renewable capacity. Customer CAPEX was mainly allocated to the build new connection, reaching a total of $33 million, with an increase of 13% versus last year. Asset management CAPEX reached 62%. million, 45 higher than first half 2020, mainly due to the higher maintenance activity in distribution, higher maintenance work in our no-cold thermal facility, and digitalization projects. Development capex reached almost $415 million, $123 million higher than first half 2020, largely driven by our renewable expansion. and development of our distribution business to contain the digitalization of our network. Let's now start with the second Q adjustment EBITDA breakdown on slide 11, that accounted $233 million, 22% lower versus 2020 figures, mainly due to a seasonal recovery of hydrology in our basins, allowed us to increase our hydro generation of 0.3 terawatt-hour, or 23% versus the second Q 2020 figures. The continuity of the lack of gas in the system and the increase of international market price has maintained a very high spot price in comparison with 2020 second Q. and consequently increase the cost of energy purchases, particularly during the no solar time required to supply our PPA. Negative PPA margin effect is mainly associated to depreciation of Chilean pesos in 2021 versus 2020, considering that our book currency is in Chilean pesos and our PPA are U.S. denominated. This effect was offset by the new agreement started in 2021 as Anglo-American and the new contract coming from NL distribution free market portfolio at the beginning of the year and the PPI price update mainly by the CPI indexation and the higher prices of our regulated PPI due to the commodities and CPI indexation. The net commodity coverage resulted in a positive effect into the EBITDA due to the higher commodity price in the market in line with our hedging strategy. A negative effect of the tariff settlement due to a tariff harmonization in 2020 training related to the recovery of supply costs in the regulated PPA and the settlement made in distribution business in Q2 2021. The network business variances are coming from a recovery of the second Q2021 demand, mainly in regulated customers due to the flexibility on the lockdown measures in the step-by-step government plan, provisions on lower remuneration on distribution tariffs, which shall be retroactive to November 2020, and in lower remuneration on the transmission tariffs as a result of the devaluation of steel and iron versus previous tariff cycles. Other effects account for $15 million, mainly related to our headquarter insurance recovery received during 2020, TransSantiago III agreement executed also in 2020, public lightning contracts celebrating during second Q2020, and additional insurance costs on renewable Let's move on to slide 12, where we have the summary of how First Alpha adjusted the EBITDA breakdown, accounting for $454 million, 20% lower versus 2020 figures. As you can see, the main effects are the same that we presented in the second quarter. $58 million related to commodity availability and higher commodity prices, negative PPA margin effects, mainly associated with the negative balance coming from depreciation of Chilean pesos in the period versus first half 2020, considering, again, that our book currencies in Chilean pesos and our PPA are US-dominated. These effects are was offset by the new agreement starting in the period as Anglo-American new contracts coming from Enel's distribution free customer portfolio at the beginning of the year. A positive $56 million on the net commodity coverage, the already mentioned $26 million on tariff settlement in both generation and distribution, A negative $18 million on network remuneration related to the expected lower distribution and transmission tariffs. Others accounted for $8 million, mainly due to our headquarter insurance recovery received last year and Transantiago III agreement executed also in 2020. Let me now give you more detail about the main generation KPI on page 13. Even though our first semester generation has been affected by poor hydrology in the country, during the second quarter, especially in June, there was a slight improvement in rainfall, which enabled an increase in our hydro generation as well as in our total production when compared to the same period of the last year. Therefore, our second quarter production reached 4.7 TWh. increase in 10% versus 2020. In the year, our production reached 9.2 TWh, very similar versus last year, and also supported by thermal generation. Our energy sales increased 18% during the first half of 2021, primarily explained by new contracts with free customers, including Anglo-America, and retail clients transferred from energy distribution distribution chain as part of unbundling regulation requirements. For what concerns our sourcing, on top of the already mentioned production variances, during the first half of 2021, we accounted a total increase of 1.8 TWh of purchases, which includes 0.7 on the spot market and 1.1 TWh from other generators related to the regulated customer portfolio contracts coming from Enel distribution business. On slide 14, just a recap of the performance of our generation business, including Enel Generation Chile and Enel Green Power Chile, which is largely explained by unfavorable hydrology, higher commodity price, and higher spot market price when compared to the last year. EBITDA has been adjusted by excluding the extraordinary effect on the coal consumption costs related to the decarbonization process and the voluntary retirement program. And finally, on slide 15, I show a summary of the adjusted performance of our network business, including Enel Distribution Chile and Enel Transmission Chile. The second Q2021 reached $35 billion, decreasing 27% regarding the second Q2020, mainly due to the lower regulated remuneration in both distribution and transmission business, tariff settlement booked in second Q2021 related to 2020 tariff period, free market clients transferred to the generation business to accomplish the unbounded law, partially offset by higher volumes, Accumulated adjusted EBITDA reached $71 million, or 34%, compared with the first house 2020 EBITDA, mainly due to the lower demand in the regulated market and the provision of the new type in distribution and transmission. Pre-market clients should transfer to generation business to accomplish the amounting law. And finally, union agreements a one-off impact booked in the first quarter of 2021. Now, on slide 16, let's go through the main driver of our group meeting. DNA and bed depth reached $151 million, a variance of $37 million, mainly related to the lower DNA in an examination due to the impairment made in Boccamino 2 in 2020, and lower DNA in EGP assets due to depreciation of China in the period. Net financial results totaled an expense of $129 million, an increase of $45 million, mainly due to higher costs due to the factoring executed in generation business on the stabilization mechanism account, higher costs regarding the new debt issue during 2020, higher exchange differences mainly in account receivable of stabilization mechanisms in generation business, this effect was partially offset by the higher financial expense capitalized in first half 2021. Income tax reflects the impact related to the lower EBITDA and the higher financial expense due to the factoring costs of tech accounts. As a result, the adjusted first quarter 2021 net income reached $119 million, 45% lower than last year's figures. The adjusted second quarter 2021 net income reached $48 million, 59% lower than the second Q2020 results. This was mainly explained by The lower EBITDA results in the quarter, for the reason mentioned in the previous slide. Lower DNA, mainly related to the lower DNA in the next generation, due to the impairment made in Bocamina 2 in 2020. Increase of $29 million in financial results, mainly explained by the factoring executed in the second quarter of the initial business. Lower income tax, mainly due to lower adjusted EBITDA. The higher financial expense as a consequence on factoring costs of the PEC account in the quarter, merged effect of green power group and lower taxes accounted in the previous year. Moving to the cash flow on slide 17. First up, 2021 SFO reached $272 million, higher than previous year figures, mostly due to higher networking capital versus 2020, mainly explained by factoring in both generation and distribution business accounted for almost $300 million, a transmission line sale in 2021 with a cash impact of $29 million, purchases of e-buses during first quarter of last year, and lower impact of stabilization price mechanism in 2021 versus 2020 due to depreciation of Chilean pesos. These effects were offset by higher income tax during first half 2021 versus last year, mainly related to COVID-19 measures during 2020 that postponed part of the corporate tax payment to 2021 and lower fiscal tax payment base during 2020, and higher financial expense mainly explained by the cost of the factoring of the stabilization mechanism account. Let me now go through our debt on slide 18. Our gross debt increased by $405 million versus December 2020, amounting to $4.4 billion as of June 2021. The variance is mainly associated with our CAPEX plan execution. In the period, we have executed a $400 million funding with AFI, partially offset by the amortization of the energy generation field 11. Therefore, our net debt in the period increased $414 million. The average cost of our debt in the period remains stable at 4.6% as of June 2021. As Paolo highlighted, we are focusing now on sustainable SDG Link instruments. We just issued our first SDG Link third-party debt of $50 million with Banco Santander, with a maturity of three years, with a very competitive interest rate, demonstrating the recognition of our risk and strategy. The new SDG loan, considered as KPIs, the CO2 emission of our generation by 2023. As of June, around $400 million of our debt are SDG-linked. We consider $400 million of intercompany SDG-linked debt issue as of June 2021. These figures do not consider the $50 million signed in July with Santander. In terms of debt amortization, our schedule remained very smooth with an average of six years and around $300 million annually maturing up to December 23. In terms of liquidity, we maintained the level of $0.8 billion, giving us flexibility to face potential headwinds in the market. And now, on page 19, Let me conclude this part of the presentation with the guidance updates driven by the recent events already discussed. As usual, the number are net of cold stock and retirement plan. During our presentation, we have highlighted the main factors that stand up in the last month. We changed our scenario for this year, particularly the complex hydrological scenarios, Commodity availability, especially lack of Argentinian natural gas, and hiking of commodity price, which is clearly not a structural effect in our market. To be transparent with our investors and all the interest parts, we have run several scenarios to reflect the evolution of some variables, driving us to predict a second alpha adjusted EBITDA in a range between 0.6 and 0.7 million dollars. Consequently, our EBITDA shall be in a range of $1.1 to $1.2 billion for 2021 at the valuation of from $300 to $400 million versus our guidance reported in November 2020. We are not yet anticipating our view on the net income results as we are running several actions to assess at most the valuation of our EBITDA. On CAPEX, we don't see important deviation as the larger part of our development CAPEX is expected to be deployed now on the second half of this year. Let me remind again that this adjustment is not a structural one as a part of the negative advent that all the utilities are facing this year. We strongly believe that our strategy of increasing renewable capacity will reduce significantly the exposure to commodity and hydro in the following years. Paolo, I will hand over to you for the closing remarks.

Thank you, Giuseppe. Implementation of our investment plan and execution of our renewable growth project will continue to be one of our priorities and necessary to support the country on the acceleration of the decarbonization. In this sense, some important discussion need to evolve with that work, as regulation for battery, for instance. Our strategy will continue to be deployed under the highest ESG standard towards the decarbonization and energy transition for the full benefit of our clients and communities. Digital operations and customer care will be key to develop a long-term relation with our clients. Our strategy is supported by our long-term vision and balance sheet trend, targeting new SDG link instruments. Thank you for your attention, and let's now open the Q&A section. I will hand over to Isabella.

Thank you, Paolo. So, operator, do we have questions?

At this time, if you would like to ask a question, press star 1 on your telephone keypad. That's star 1 to ask a question.

Okay, perfect. So I received here from the chat questions from Murilo Rettini from Santander. So the first question from Murilo, Paulo Giuseppe, is how do you evaluate the expansion of the transmission system? Will this be enough for the relevant incorporation of renewable capacity in our point of view, in your point of view, or could we expect a higher level of losses due to conjectures? How do you plan to handle this issue? So I think we could answer this, and then I'll go for the others, Paolo and Giuseppe.

Okay. Hi, Murillo. Thank you for the question. Regarding the extension of transmission system, the connection between the north and especially the center, that is the area of mine consumption, is always interesting a large debate between the different players, different actors in the sector. Now there is this project for improving the connection using high voltage DC connection. Clearly, it is a very impacting project in the sense that it will require time. So, there are two elements to take into consideration. The full commitment of all the parties involved in building up this interconnection system. That is key for Chile, for sure. And second, I can mention also our reactions. In the sense that we are, let's say, defining our portfolio of plants and also of clients in order to avoid to be, let's say, tackled by this bottleneck. In the sense that we have important contracts in the north. we are still developing our potential conflict in the same area. In the same time, we are also developing interesting position in the center. So that's the way in which we can cope in the short midterm, but I agree with you that is key. Honestly, I think that being so essentially in the evolution of the country, this kind of interconnection, it will evolve possibly. Don't ask me to bet about the right year to enter into operation because it could be hard to answer. But I'm positive on the attention of the authority on this. At the same time, we as a company, we are trying to to have a countermeasure in order to avoid to be hit by a certain element of bottleneck.

Okay, thank you, Paulo. The second question from Marie-Louise. How are you seeing the performance of the demand in the concession area of an L distribution in July? Any signs of recovery with the low restriction measures?

Okay, we are evaluating clearly a period of six months. If we focus on the very recent months, the effects, the negative effect of having the Santago metropolitan region in lockdown, so many of our clients, I'm referring to the commercial sites So, all in all, what we see, the recovery in the last one month and up, even if it's early to provide you a figure. At the same time, we have a general evaluation in terms in the concession area in the first six months compared to the first six months of last year is likely decreased, but you are taking, to take into consideration also perimeter effect in the sense that to be a movement, even if not so big, that of clients that are entitled to move from a regulated system into a free market that are, let's say, choosing to be free, to be out of the regulated system. And these are the impacts in the regulated segment. If you look at that specific area, there is, All in all, a decrease between 2% and 3%, all in all, considering all the effects that I mentioned, so the perimetral effect and the lockdown that suffers Santiago in the, let's say, the central area of the period between March and mid-June.

Perfect. Thank you, Paulo. And the last question from Murilo from Santander is, why is the number of overdue clients decreasing versus first half 2020? Could you provide more details on this and on the discussions being held to the lower house, please? Okay.

This is a little bit large discussion because from one side, what we have measured, considering, let's focus for a second on the domestic segment that is the most affected by the recent regulations started in August of 2020. If we measure that segment, We have not seen a very improvement in terms of number of clients that are not paying. But let's say the mechanism that we have seen is that the clients that during the regular period of the year used to, let's say, enter into the overdue debt segment. And then start to pay in a period of, let's say, aging between 40 and 60 days, because this is the area where the cut will enter into, the cutoff will enter into pressure by the distribution. In this case, that amount that the clients are not paying. They remain in the segment of overdue, but their aging are increasing. And this is happening also for, unfortunately, and this is something that we have, let's say, announced to the press, this is something also to large domestic clients with the consumptions higher than 1,000 kilowatt hour per month. It means approximately four times the average of Santiago. But also for clients between, let's say, 500, 700 kilowatt per month, that they are not paying. If we look at that number, for instance, the large client segment, the overdue debt or large client segment, more than doubled. between March 20 and June 21. So there is an effect that is driven by the impossibility for the distributor to, let's say, cut off the non-vulnerable clients because we are talking about non-vulnerable clients. Clearly, all the attentions, all the care for the family cannot afford to pay their debt. But this is a different discussion. The focus, and also our analysis, is focused on that category of clients that has high consumption, requires resources to pay, but are not paying because nobody can cut them off. And this is an important element of discussion that we're having with the authorities. On a general basis, there is, there's been this announcement in early June, if I remember correctly, regarding a famous table, negotiation table between different party boards, the government and the senate, where to find a solution that should help the vulnerable families, the vulnerable clients to afford the period once the system will come to normality. That's the real issue because if you look at today, would have our client, the average debt just using a number that we have is in the range of 100,000 pesos, Chilean pesos. on top of the regular fare that they are paying on a monthly basis, this is very difficult to be managed. Also, if we use a 48 quotas without interest. So this is where we have to focus and leave the distributors work with clients that can pay, but they do not.

Perfect. Thank you. I don't know, operator, if you have any questions online. Otherwise, I have one from Rodrigo. I can do it now.

There is a question on the phone line.

Yes. Can you open the line, please?

Okay. The question comes from the line of Rodrigo.

Sorry, Rodrigo sent me the questions. He has a problem on the line. So the first question on Rodrigo, the first one is that given the drought situation in the country, is ENERV evaluating to postpone the closure of Boca Minas II in order to preserve the electrical security of the system? This is the first question, Paul and Giuseppe.

Yeah. Hi, Rodrigo. Clearly, as already Giuseppe highlighted in his analysis, we are not dealing with structural changes. So what happened this year is something that is a coincidental difference element that didn't happen in the past. So we do not see, let's say, any reason or the effect for change our strategy and our decision to, let's say, come back now on the phase-out of Boccamina, considering that by next year, at least 1.3 plus more megawatts will come online only, only by our side. If you look at general picture, the effect and the evolution of this year has been driven also by important delay on many other projects. Renewable projects that should cover in the short midterm the energy requirements of the system, of the . The important point here is to allow the system to work properly. For instance, us together with also other companies we heard, we are focusing on the development of the regulation of the storage. that will be key for a proper functioning of the system. And this, we hope, is something that will take place during the second half of this year in order to be properly in place. I'm referring to both the ancillary services package system and to recognition of the capacity payment in order to allow to enter into the system with renewables plus storage and to fulfill all the requirements of the system.

Perfect, Paolo. Thank you. So the second question of Rodrigo from Moneda is which is the hydro generation that you are estimating for the second half of the year considering the guidance updated released by the company today?

Yes, on this I will answer to Giuseppe that can be more precise in terms of number. In terms of concept, you know, Rodrigo, how difficult it is to make some, say, prediction in terms of water or hydrology. It happened a couple of years ago that after six months of draft period, we have very important storms that cover all the requirement from during the second half. So it's quite difficult to predict what can happen, especially the second half where you should have, let's say, potential. snow, still potential snow, as happened that time, and then the melting of the snow and the ice, so it's very difficult, but I leave it to Giuseppe to give you some feeling on numbers.

Yeah, well, basically we are projecting to have around 6.6 terawatt-hours, so in order to close the year, around 10.4 So this is the projection that we have right now.

Thank you, Giuseppe. Then the next question from Rodrigo. Rodrigo is asking more details about the extraordinary effects that we booked during this period. So he's asking more details about the impact of $46 million, and if we can give a breakdown on the voluntary retirement program that we announced for the group in Chile in this period. Thank you.

I'll leave Giuseppe the answer.

So the $46 million we can split in two parts. The first one that is around $21 million that is related to the decarbonization effect. And the remaining part is around $24 million. It's related to the retirement plan, where if you want to have additional breakdown, this $24 million is 50% in energy distribution, $9 million for energy generation, and around $3 million for energy holding. So this is basically the breakdown that we have.

Okay. Thank you, Giuseppe. So, operator, do you have any more questions?

No, ma'am.

Okay, Dan, so as we do not have any more questions here, we would like to thank you, Dan, for your presence in our call today and mention that our team from Investor Relations will be available for any other questions or doubts that you may have during this period. So many thanks for your attention. Thanks, Paolo and Giuseppe. Have a nice day. Bye-bye.

Thank you. Thank you. Thank you very much. Thank you very much. Bye-bye.

This concludes today's conference call. You may now disconnect.