Enel Chile S.A.

Good morning ladies and gentlemen and welcome to NL Chile full year and fourth quarter 2024 results conference call. My name is Carmen and I'll be your operator for today. At this time all participants are in a listen-only mode. After the speaker's presentation there will be a question and answer session. To participate you will need to press star 1 1 on your telephone You will then hear a message advising your hand is raised. To withdraw your question, simply press star 11 again. Please be advised that today's conference is being recorded. 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 NNL Chile's press release in reporting its full year and fourth quarter 2024 results. The presentation accompanying this conference call and NNL Chile's annual report on Form 20F included under risk factors. You may access our full year and fourth quarter 2024 results, press release and presentation on our website at www.nl.cl and our 20F on the SEC's website, www.sec.gov. Readers are cautioned not to place undue reliance on those forelooking statements which speak only as of their dates. NLChile undertakes no obligation to update these forward-looking statements or to disclose any development as a result of which these forward-looking statements becomes inaccurate except as required by law. I would now like to turn the presentation over to Ms. Isabella Clemes, Head of Investor Relations of NLChile. Please proceed.

Buen dia, good morning, and welcome to NL Chile 2024 fourth quarter and full year results presentation. Thanks to you all for joining us today. My name is Isabella Clemes. I am the head of investor relations team. Joining me today, our CEO, Giuseppe Turchielli, and our CFO, Simone Conchicelli. Our presentation and related financial information are available on our website, www.nl.cl. in the Investors section and on our app, Investors. In addition, a replay of the call will be soon available. At the end of this presentation, there will be an opportunity to ask questions via phone or webcast chat through the link Ask a Question. Media participants are connected only in listening mode. Giuseppe will start the presentation by covering key highlights of the period. He will then discuss our portfolio management actions provide updates on regulatory concepts and share our guidance achievements. Following that, Simone will offer an overview of our business economics and financial performance. Thank you for our attention. Giuseppe will now take over the call.

Thank you, Isabella. Good morning and thanks for joining us. Let's start the presentation with our main highlights of the period on slide two. Our hydro portfolio performed exceptionally well, with hydro generation increasing by 12% compared to last year. This performance was a result of a higher reservoir level at the beginning of the year, influenced by El Niño phenomenon observed in 2023 and a solid rainy season during 2024. Also on hydro, We are pleased to announce that the Los Condores hydropower project has finally been connected to the system. The plant is already in full capacity mode generation. All the tests were concluded, and we are now expecting to receive the COD in the next weeks. As we reviewed last quarter, the first major climatic event on August severely impacted our distribution concession area in this presentation i would like to provide you with some updates on the additional measure we have been taken to prepare for the future climate events while we do not see changes in distribution regulation regarding the august event i would like to emphasize that enel distribution was the first distribution company to request and agree on a voluntary compensation plan for its clients impacted by the fourth major event in august also i will give you more color on how we are in terms of bad 2024 2028 process and the pack situation considering the publication of pmp it is the regulated consumer tariff during january this year Regarding the business profitability, I'd like to remind you that we changed the company's functional currency during the fourth quarter. This led to a no-cash impact of $657 million at the ABDA level. As we have emphasized before, this will not affect the dividend distribution for our shareholders. Throughout the presentation, we will discuss adjusted EBDA and net income, excluding this impact. Taking the adjustment, I am pleased to announce that our adjusted EBDA and net income results were fully in line with the 2024 guidance, reaffirming the confidence in our strategic plan. In terms of FSO, we see an important improvement versus last year. coming mainly from our EVDA and the PEC factoring executed in the fourth quarter. I will provide more detail on this later. Now, let's review some updates regarding our generation sourcing, beginning with the hydro and natural gas situation as outlined on slide 3. The positive hydrological conditions during 2023 which led to a greater water availability from the beginning of 2024, coupled with a higher than expected rainfall record in 2024, allowed us to increase our hydro production. This resulted in a 12% increase compared to the 2023 period, equivalent to 1.5 TWh of additional hydro generation. The hydrological situation in our reservoir continues to be comfortable year to date compared to the last year figures, despite experiencing a La Nina phenomenon. However, for the year, we have chosen to adopt a conservative strategy and set our hydro condition target for our hydro fleet closed to the average of the last 10 years, equivalent to 10.7 TWh. To strengthen and diversify our portfolio, we have strategically secured contracts with a variety of Argentinian natural gas providers for 2025. Unlike previous years, these agreements cover the entire year, not just the winter and summer periods. This approach enhances our visibility of both prices and quantities, providing us with a more stable and predictable supply for the year. Furthermore, while Argentinian gas remains highly competitive, our strategy continues to be anchored to our long-term and firm LNG contracts with Shell. This dual sourcing strategy ensures the security of our required volumes and offers the flexibility to explore trading opportunities in both internal and external markets. This proactive measure position helps strongly to navigate market and climate fluctuations and capitalize on opportunities. Let's continue discussing our generation sourcing with a focus on the development of our portfolio on generation assets now on slide 5. I would like to start emphasizing that in 2024 we successfully completed the expansion of our renewable portfolio across the country, increasing our exposure to battery energy storage. This milestone represents a crucial step in our strategy to diversify and make our portfolio more flexible. Our ongoing efforts to advance battery regulation for ancillary services are vital for boosting market competitiveness and reducing system costs. In 2024, we received authorization for the from the National Electricity Coordinator to begin commercial operation of a total of 693 MW. These include 385 MW of solar, 202 MW of battery storage and 106 MW of wind capacity. Additionally, we successfully connected 404 MW of renewable capacity in 2024. bringing our total capacity to 8.9 gigawatts today almost 80 percent of our total capacity is renewable and best as anticipated in the fourth quarter we connected los condores hydropower plants into the grid the plant is already operating in a testing mode until we receive approval for the coordination to commence commence commercial operation. The good news is that we are generating at high levels. To date, we have received approval for the 11 testing procedures requested by the system coordinator and have sent a letter formally requesting approval for commercial operation last week. Therefore, it is reasonable to anticipate authorization by March this year. Now, on the next slide, we will review the performance of our generation KPI. Net electricity generation total 24.6 TWh as of December 2024, exceeding by 2% the production during 2023. mainly due to higher hydro and renewable generation, resulting from the improved hydrology this year and the operation of new projects. During the fourth quarter of 2024, next generation decreased 8% to 6.1 TWh, mainly due to lower thermal dispatch during the fourth quarter of 2024, lower other renewable production, and slightly better hydrology recorded during 2023. Our energy sales total 33.4 TWh during 2024, 8% higher than the level recorded in the previous year, resulting from higher sales to both regulated customers and free clients. Our commitments with our clients were fulfilled with a higher portion of our renewable generation, coupled with an efficient portfolio of purchases for two third parties. Regarding the latter, in terms of our balance during 2024, we increased our purchases from third parties by 2.3 TWh as part of our continued effort to diversify and optimize our energy sourcing. During the fourth quarter of 2024, physical energy sales grew by 6% to 8.1 terawatt hour, mainly due to higher sales to regulated customers. Now, I would like to take a few minutes to talk about the extraordinary weather events of last August. I would like to provide updates on the extreme weather events that impacted our concession area in August 2024 and discuss our preparation for future events. Just to recall, on August 1st and 2nd, an extraordinary and unpredictable storm with winds of up to 124 km per hour impacted the metropolitan region causing extensive damages this storm severely affected our electricity distribution network resulting in widespread power outages and making system restoration extremely challenging we request the local regulator to declare the august 2024 storm as a force majeure event, but it was rejected. In response, we filed a reclamation remedy with the Santiago Court of Appeal to overturn the Superintendencia d'Electricidad e Combustibile decision. On September 30, 2024, the Santiago Court of Appeal accepted our reclamation remedy requiring the SEC to provide substantial information about our claims. As anticipated, on November 24, the SEC report recommended rejecting our claim. We are now awaiting the court's file resolution, which remains pending, and we stand confident in our position. Still related to the event in August, last January the SEC imposed a $20 million fine on Enel Distribución. This fine is the largest ever imposed on an electricity provider in Chile for service disruption, among other issues identified by the SEC. Enel Distribución booked 100% in December 2024 of the fine, but file and administration remedy reiterating that august climate event was an unforeseen and resistible force major under chile current legal and regulatory framework we are awaiting the second formal response to our appeal on february 4 2025 and distribution as part of a voluntary collective procedure became the first distribution company in chile to reach a voluntary agreement with the national consumer services to establish an extraordinary compensation mechanism for residential customers affected by the prolonged power outages the agreement includes a total Voluntary agreement of approximately 80 million dollars benefiting around 800,000 customers This amount is divided into first compensation of interruption Second compensation for claims and compensation for the loss of food medicine and similar items these agreements is separated from the legal compensation that are pending the resolution by the force majeure and aggravated abnormal state reclamation remedies. The impact of this Voluntary Agreement Program was also recorded in our 2024 financial results, as Simone will show you later. several regulatory and legal discussions surrounding the August events, we have introduced many initiatives to improve the response of all our parties involved in the future climate events. We believe that climate changes will make such events always more frequent. Therefore, it is essential for all parties to act promptly promptly and effectively to ensure the proper functioning of the networks. Let me provide you with some examples. We agreed on operational emergency guidelines with the municipality to better coordinate with our operational teams during climate events. We signed a collaboration agreement with the electro-dependent group to ensure backup for medical devices and to provide training on the correct use of the equipment. We accelerate the rollout of the smart meter program for electro-dependent clients and we conduct it through preventive aerial inspection of the grid in preparation for the upcoming winter, to identify any potential additional damage from the August events and to address any further needs for preventing tree trimming. Part of these actions were already included and presented as part of Enel's Distribution 2025 Autumn-Winter Season Plan, which was submitted to the SEC on February 19, 2025. In the distribution sector, we remain committed to promoting reform and modernizing the regulatory framework to enhance asset resilience. This effort will enable us to optimize the value of our distribution network, fully meet our clients' needs, and ensure long-term sustainability. Talking about regulation, let's take a look the main update on the next slide a supporting regulatory framework is crucial for attracting investment necessary for the energy transition and providing resilience against increasingly extreme and frequent events to climate change therefore we continue to advocate for a new model based on real assets that addresses factors such as proper remuneration rates and incentives mechanisms for resilience quality and performance improvement we appreciate the consensus among academia the electrical industry and the congress on the urgency of the distribution reform and hope it will soon be part of the legislative agenda once the legislative member returns in March. The process for the 2024-2028 VAD has started using the same methodology applied for the 2020-2024 cycles, the reference model company. The delivery and official publication of the consultant final report are expected by the and we estimate that by the second quarter of 2025 the Regulator will publish the preliminary technical report on this new cycle. We expect an improvement in remuneration for this new process, considering the newly approved Valor Nuevo de Reemplazo and all the economic and technical assumptions of December 2022 included in the report. We believe that this factor will be confirmed in the various stages of this process. Regarding the PEC, since October of the last year, we have not accumulated additional receivables as the client's tariff now reflects the real contract price. In December 2024, the decree for the first alcohol 2025 PMP was published and the regulated tariff was updated. In this process, the average residential consumer in the metropolitan region of Santiago experienced an average increase of around 12%, mainly due to the integration of the client protection mechanism, MPC, into their tariff. This mechanism allows for the gradual repayment of accumulated debt to the generator and established a transitional subsidy for the most vulnerable clients. On the other hand, clients with consumption higher than 350 kWh per month that have been paying for this mechanism since last year saw a decrease of approximately 3% compared to their tariff from last year. Related to the PEC accrual, as of December 2024, we had an account receivable related to the PEC already net of factoring and including readjustment and interest of around $500 million, showing a reduction of around 40% versus 2023. This reduction is mainly due to the factoring executed last October 2024. We expect to execute a new factoring during the second quarter of 2025 of around $250 million. Let's move to the right side of the slide, where we will review the key points of the government's proposed law to expand subsidies, which currently benefiting benefit around 1.8 million families. The new proposal aims to extend coverage to approximately 4.7 million families, targeting the 40% most vulnerable households in Chile. In January 2025, the Chamber of Deputies approved the government's proposed text with some changes. The proposal, which will now move to the Senate for its second legislative stage includes various instruments to fund the subsidies. The key instruments to fund the subsidies are as follows. Allocating the additional VAT revenue that the Treasury is collecting due to the increase in the tariff. Implementing a temporary surcharge on the green tax emissions, increasing it from the current $5 per tonne of CO2 emitted. Also, in this project, the Chamber of Deputies has approved the following, increasing the amount of compensation that the distribution company must pay to clients in case of distribution power outages, and for what concerns the small and medium companies, replacing the price of electricity currently provided through the regulated contract with a price that includes a reduction coming from the electricity prices of PMGD in order to offer a tariff discount to this client limited to 500 GWh per year. As Enel we support the government's efforts to assist the most vulnerable families amid potential economic challenges. While these solutions aim to provide necessary support, it is important to ensure that they do not disrupt the market, as occurred since 2019. For a sustainable approach, it is essential to consider measures that preserve long-term investments, competitiveness and the energy sector. We believe that allocating additional VAT revenue could be a viable and sustainable option among the proposed measures. I will now conclude with our commitment and deliverables on slide 9. Let me point out that we have reached our main financial targets for the year 2024 our results adjusted for the no cash effect of the change in functional currency show an ebda of 1.4 billion dollars and a net income of 0.6 billion dollars this achievement reflects our ability to generate value in a resilient and flexible manner even in a challenging environment and more efficient portfolio mix driven by improved hydrology conditions allow us to meet our EBDA net income commitments of our guidance announced during 2024 investor day. Simone will provide details on our performance on EBDA and net income in the following slides. The actions taken during 2024 have ensured the fulfillment of our leverage and net debt to EBITDA commitments, allowing us to recommend maintaining the committed payout in our guidance. This recommendation was also endorsed by the Company Board of Directors and will be submitted for approval 2025 annual shareholder meeting. Now, I will hand over to our CFO, Simone Conticelli. Simone, the floor is yours.