Enel Chile S.A. American Depositary Shares (Each representing 50 shares of Common Stock)

Good morning, ladies and gentlemen, and welcome to the NL Chivas first half and second quarter 2025 results conference call. My name is Victor, and I'll be your operator for 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 risks and uncertainties. Actual results may differ materially from those anticipated in the follow-up statement as a result of various factors. These factors are described in NLG list press release reporting its first half and second quarter 2025 results. The presentation accompanying this conference call and report on Form 20F included under risk factors. You may access our first half and second quarter 2025 results press release and presentation on our website, www.no.cl, and our 20F on SEC's website, www.sec.gov. Readers are cautioned to not place under-reliance on those forward-looking statements, which speak only as of their dates. NLT undertakes no obligation to update these forward-looking statements or to 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 Clemes, Head of Investor Relations of Enel Chile. Please proceed.

Buenos dias. Good morning and welcome to Enel Chile 2025 Second Quarter and First Half Results Presentation. We greatly appreciate that you take time to join us today. My name is Isabella Clemes. I'm the Head of Investor Relations. Joining me this morning are our CEO, Gianluca Palumbo, and our CFO, Simone Conchicelli. Before we begin, I'd like to take a moment to introduce Gianluca Palumbo, who assumed the role of Chief Executive Officer of Enel Chile on July 1st. Gianluca is an electrical engineer, a graduate of the University of Naples Federico II, and brings nearly three decades of experience within Enel Group. Throughout his career, he has held several strategic leadership positions, including head of global network development for all distribution business lines within Enel, and general manager of the two Enel distribution companies in Argentina. Most recently, Gianluca serves as head of global construction, operation, and maintenance for the entire distribution business across Enel Group. Our presentation and related financial information are available on our website, www.panel.cl, in the investor section, as well as through our investor app. In addition, our replay of the call will soon be available. At the end of the presentation, there will be an opportunity to ask questions via a well-pressed chat through the Ask a Question link. Media participants are connected in the listening mode. Gianluca will quick off the presentation by covering three highlights of the peers and the country energy process. He will also delve into our portfolio management actions and provide updates on the regulatory process. Following that, Simone will offer an overview of our business economic and financial performance. Thank you all for your attention, and now let me hand over to Gianluca.

Thank you, Isabella. Good morning, and thank you for your participation. I'm honored to be speaking with you today. Together with our senior leadership team, I'm committed to our core goals as we navigate both challenges and opportunities with clarity and determination. Let's start the presentation with our main highlights of the period. Let's begin with portfolio management. Hydrogeneration remained consistent with the last year's levels, supported by a higher than expected thermal dispatch. This was largely driven by transmission constraints throughout the period, as well as temporary unavailability of certain thermal units within the system. Our gas trading operations also performed well this quarter, playing a strategic role in complementing our portfolio and helping offset our spot market purchases. This activity continues to be a key tool in navigating current market dynamics and is expected to remain at a relevant level throughout the year. Now, moving on to our distribution segment. At the same time, we have made solid progress with our Resilient a Winter program. This initiative is designed to strengthen our grid and improve our response to climate-related events. As part of this effort, we have been deploying remote control systems across our network to significantly reduce average services restoration times. This is a key part of our strategy to ensure long-term reliability and to improve our operational continuity. We have also implemented a new vegetation management control program carried out in close coordination with local municipalities and relevant regulatory entities. This initiative aims to prevent service disruption and further secure the stability of our infrastructure. Additionally, we have introduced new procedures for managing grid failures more efficiently. For instance, Once applied, we are using generation units to support service restoration during network recovery. These enhancements are part of our broader strategy to boost system resilience and operational responsiveness. Let's now turn to the regulatory and country context, which continues to play a key role in shaping our strategic decisions and long-term planning. This third quarter will be particularly relevant as we expect the release of the final VAD 2428 consultant report and the publication of a new regulation on best ancillary services. I will share more details later. In the meantime, the PMP regulated tariffs decree for the second half of 2025 was published in July. This update adjusts the energy component of a regulated tariffs. As I will explain later, it enables us to begin recovering larger portions of PEC 1 and provides greater visibility of a cash flow for our generation business. Let's now move on to our financial performance, which reflects the resilience of our operations and our ability to adapt to a changing environment. In the first half of we delivered an EBITDA higher than the same period last year. This strong performance was further supported by a positive SFO driven by $261 million received from stabilization energy mechanism factoring. This inflow significantly improved our cash flow position. As a result, we have maintained a solid liquidity position and allows us to navigate potential headwinds posed by evolving climate scenario while also advancing our investment program across both our generation and distribution businesses. Now, turning to generation investments. After gaining confidence in proposed ancillary services regulation and deeply analyzing several market scenarios for Chile, and observing the cost of evolution of the path, we are ready to formally launch construction of our best investments. These projects will be deployed in the northern Chile, adding around 0.5 gigawatts of battery energy storage to our portfolio within the next two years. This marks a significant milestone. It reinforces our commitment to Chile and demonstrates the strength of our strategy to continue serving both regulated and free market segments. Now, let's move to slide four to talk about the country's market situation. The national electricity system has been affected by several factors, including poor hydrological conditions, both scheduled and unscheduled maintenance across various thermal power plants, and the temporary and availability of a transmission line connecting the northern and central regions of the country, mainly in April and June, which led to significant system decoupling. All these factors combined led to increase in spot price in central southern zone of Chile, mainly during daytime hours, resulting in higher operating costs for the system, as we are showing in the left part of this slide. On the hydrology front, cumulative rainfall, as expected, has been lower than in the same period of 2024. Nevertheless, the hydro generation during this period was close to last year's levels. Therefore, we are maintaining our hydrology guidance for the year in line with the average observed over the past 10 years. For 2025, we expect hydro generation to reach around 11 terawatt-hours. Despite this challenging scenario, we have managed to navigate it thanks to our solid and long gas supply position, which includes our long-term LNG contact with Shell and Argentina gas supply, the full availability of our efficient thermal capacity and strategic water reserves from favorable rainfall in 2024 stored in our depths. Thanks to our robust and diversified guide position, we were able to capitalize on favorable trading opportunities across both local and international markets during the period. This demonstrates the effective complementarity within our portfolio. Now moving on to slide five. Let's review our generation portfolio and energy balance, taking into account the system constraints I just outlined. First of all, I would like to highlight that we have started 2025 with a solid, diversified portfolio. which includes a total net installed capacity of 8.9 gigawatts with 78 coming from renewable energy source and battery energy storage systems. Net electricity generation decreased 5% compared to production as of June, 2024. This decline was driving by lower hydro dispatch during the first quarter of 2025, reduce renewable generation, increase the containment levels caused by transmission line limitation already mentioned. However, this was partly offset by higher contribution from our efficient thermal power plants. During the second quarter of 2025, net generation declined to 5.9 terawatt hour, mainly due to the reduced renewable generation already mentioned. In the fourth half, our energy sales almost reached 15.1 terawatt hour, mainly due to lower fees to regulate the customers following the expiration of regulated contracts. During the second quarter of 2025, physical energy total 7.4 terawatt hour, lower than the second quarter of 2024, mainly due to reduced sales to regulated customers and free clients. In this first semester, as you can see in the slide, we reduced our purchases from third parties and also our spot market purchases, mainly at non-solar hours. Now, I would like to take a moment to discuss the energy regulatory framework and share important upcoming updates on . Regarding our distribution business, we are currently navigating a new regulatory cycle that incorporates a new replacement value of $2.1 billion. The consultant's final report on the 24-28 V8D is expected to be delivered and published in the coming weeks. We estimate the regulator will release the preliminary technical report for this new cycle in the second half of 2025. to the 2024 BAD process, we remain monitoring the resolution from the Superintendency of Electricity and Fuels, which will establish the timeline for defining the outstanding debt in favor of distribution companies, marking an important step toward improved regulatory. Now, on TARIS, in July 2025, the decree for the second half of 2025 PNP was published. This decree allows the recovery of cash in our generation business for an amount of around $48 million in the next six months. Related to the PEC accruals as of June 2025, we had an account receivable related to the PEC of around $164 million. These figures already include the factory executed in April for $261 million. Let's now move to right-hand side of the slide to review updates on important changes in the regulatory framework currently under discussion. The proposal to expand the electricity subsidy for the country's most vulnerable households continues under discussion. So far, the measures approved to date are additional net VAT related to the tariff increase, increasing the amount of compensation that the distribution company must pay to clients in case of distribution power outages. The discussion now moves to the Finance Commission before being voted in the Senate Plenary. Measures related to the CO2 tax and so-called Bolsa Pime initiative are still under discussion. Regarding the remuneration of ancillary services for battery energy storage systems, we expect regulatory update in the third quarter of 2025. The proposal presented by National Energy Commission seeks to encourage the participation of BBS in the ancillary service market by recognizing the cost associated with their delivery, given the systemic benefits that their inclusion would entail. To this end, A calculation methodology for the opportunity cost is proposed to mitigate the risk of foregoing participation in energy arbitrage. Next, our CFO, Simone Conticelli, will present a review of our financial and economic performance.

And again, to Gianluca, a good morning, everyone. I will start by reviewing the highlights of our performance over the video. Before we start commenting the first thought results, let me remind that as of January 1st, 2025, energy has changed its functional currency from US dollars. For comparative purposes, in today's presentation, the first half and the second quarter 2024 figures are converted using the average exchange rate of the figures. And now, let's take a look at the brief overview of our financial performance. As shown on the slide, in the first half 2025, EBITDA reached $659 million. representing a 10% improvement compared to the last year figures. The improvement is mainly driven by strong sources of performance and generation and improved gas trading activities, which more than offset the negative impact of regulated PPA aspirations and transmission line cost stress. The June transmission line constraint particularly impacted the second quarter EBITDA that slightly decreased by $10 million compared to the second quarter 2020. Going to the net income, the first half net income amounted to $246 million representing a decrease of 8%. compared to the previous year, mainly due to the higher DNA, while the second quarter net income amounted to $71 million. The first half FFAO showed a significant improvement compared to the last year, reaching $410 million, 7.8 times the previous year's figures. and the second quarter FFO reached $295 million, that means $357 million higher than the result of the same period of 2024. The increase is driven mainly by the previously mentioned improvement in EBITDA and the recovery of funds associated with PECA. We'll go into more details later in the presentation. And so now moving, let's move to the next slide to review the progress made on CAPEX. Our total CAPEX reached $157 million in the first half, mostly centered on grid and power plant fleet performance. Let's take a closer look at the allocation. 40% or $63 million was directed towards Greece investments. 31% or $48 million supported thermal projects. 29% or $45 million was invested in renewable and storage. The green focus, as previously explained by Gianluca, remains on the renewable program, reinforcing infrastructure to reduce vulnerability to climate-driven destruction. The priority for thermal segment is the maintenance and performance enhancement of the power plant fleet. In the renewable segment, we have centered our efforts on finalizing the PMGD program. enhancing hydro-facility performance, and maintaining fleet availability. Passing to breakdown by nature, asset management capex totaled $89 million, accounting for 57% of the total capex, mostly used for the maintenance of Atacama, Quintero, and Sanifiro CCGT, and grid correcting maintenance and digitalization. Development CAPEX was $38 million, primarily driven by the complexion of 2024 investment program for PMGDs and investment for grid reliability enhancement and telecontrol deployment. The 2025 development CAPEX for battery-related projects has been partially deferred to 2026. Customer CapEx totaled $30 million, mostly focused on low- and medium-voltage connection projects and initiatives to support load increase. And now, let's move to the next slide, which presents a detailed view of our second quarter series. In the second quarter of 2025, our EBITDA reached $293 million, representing a slight decrease of $10 million compared to the same period of 2024. Let's go to the main reasons for the performance differences. Starting with generation business, we recorded a decrease of $106 million in PPA sales, primarily due to debt. Termination of some high-priced regulated contracts has impacted on volume and average price of the regulated portfolio, partially offset by the negative impact of exchange rate hedges recorded in 2020. Going to the sourcing, we recorded a positive effect of $92 million, despite the negative impact of $23 million due to the transmission line constraint and interruption, particularly in June. The good performance is primarily explained by lower cost in the spot market, mainly due to the lower energy volume or shape, and lower third-party purchases. Regarding gas optimization activities, we achieved a positive contribution of $25 million thanks to increased gas trading volumes for the total of 6.4 TPU during the second quarter of 2025. Regarding our business, we reported a positive impact of $7 million, mainly driven by a provision reflecting the higher tariff expected for the 2024-2028 regulatory remuneration period, partially offset by a higher tariff in the quarter, mainly due to increased maintenance activities and a strengthening degree. We also recorded a negative impact of $14 million, mainly due to generation costs related to the new development capacity that started in November after June 2024 and maintenance activities. Finally, in the second quarter of 2025, we recorded the personnel cost one-off effect, mainly for the incentivized early retirement plans, to support the company organization and at improving internal performance. And now, let's move on to the next slide to review the main impact on EBITDA during the first half. In the first half, our bid reached $659 million, representing an improvement of $62 million compared to the same period of 2024. Starting with the generation business, we recorded a decrease of $155 million in between sales, mainly due to the determination of high-price regulated contracts. Partially offset by the negative impact of and the positive price test due to the indexation of three market contracts. Regarding sourcing, we recorded a positive benefit of $189 million despite the $34 million negative impact due to the transmission life restriction following the February blackout and the additional second quarter issues. The result was obtained thanks to lower hot market and third-party energy purchase costs, energy settlement for previous years, reduced transmission costs, and finally, lower production costs thanks to the efficiency of our thermal power plant. In the first half of 2025, gas optimization activities contributed for $22 million, also thanks to an increase of 5.9 terabitu in trading volumes versus the same period of 2024. On the Greek business, we recorded a positive impact of $34 million, primarily driven by two factors. The provision of reflecting the highest tariff expected for 2024-2028 regulatory remuneration period and the favorable effects of tariff indexation. As outlined in the quarterly analysis, in the first half we recorded an increase of generation costs due to the new level capacity and the maintenance activities. Previously explained, we have a novel public effect of $30 million related to the company's reorganization. And now let's move on to the next slide where we will review the net income evolution. Our first-half 2025 net income reached $246 million, and this reached 8% compared to the last year's figures, mainly explained by improved EBITDA by $62 million, offset by higher depreciation, amortization, impairment, and vendor expenses for $66 million, mainly due to The commissioning of new renewable capacity amounting to $20 million. The $29 million impairment followed our decision not to proceed with the new PNGD solar project initially planned for development in this area. And finally, the increase of these bad debt provisions amounting to $6 million, mainly driven by higher average invoice amounts due to the rise of taxes. Regarding financial results, we recorded a negative variation of $28 million, mainly explained by the lower capitalized expenses of renewable projects, the 2024 interest on tax receivables, partially offset by lower financial expenses and positive foreign exchange differences. We also recorded a $3 million increase in the income taxes, mostly due to the improved results. Opposing on the quarter, net income decreased by $39 million, mainly due to $10 million decline in EBITDA, $41 million increase in depreciation, amortization, and red debt, primarily due to the operation of a new renewable capacity and the augmented impairment. And finally, $12 million decrease in income taxes, mainly due to the lower results reported in the second quarter of 2025 versus the second quarter And now let's move on to the FFO analysis on the next slide. Let's analyze the FFO composition for the first half of 2025 and the main effects compared to the same period in 2024. RFFO reached $420 million, representing an improvement of $321 million compared to the first half of 2024. This is due to the following factors. First, EBITDA amounted to $639 million, with a positive variation of $61 million as previously explained. Second, the $269 million recovery of PEC receivables in the first half of 2025, mainly due to factoring executed in April 2025 related to PEC 3. It's worth mentioning that we accept a positive FFO balance of $460 million. $16 million versus the first half of 2024, thanks to the end of accumulation of paid receivables, started in October 2024. Third, the working capital increased by $256 million, mainly due to the development of capex payments and seasonality on energy payments. The increase was higher by $118 billion versus two years ago, mainly due to the negative effect of energy payment scheduling and the increase in energy distribution residuals due to the increase in the tax. These effects were partially offset by lower-capit payment related to the new renewable capacity. for the income taxes impacted on FFO by $187 million, mainly due to tax payments in the generation business. Income taxes paid in the first half of 2025 were higher by $15 million compared to the first half of 2021. This difference is mainly due to the increased tax payments in the generation of business, driven by both higher results and higher monthly payments tax rates. And finally, financial expenses amounted to $82 million, mostly due to the dependency-related costs. This represents a reduction of $38 million compared to the first half of 2024, mainly driven by a lower average debt this year. And now let's take a look at liquidity and leverage position. Our gross debt increased slightly by $40 million to $3.9 billion at the end of June 2025 compared to December 2034. This increase is mainly due to a seasonal effect related to the net working capital needs in the second quarter. The gross debt increase between December 2034 and June 2035 was driven by $100 million drawn from the new federal line with CAF, Bank for the Desarrollo de América Latina, and $42 million in new leasing liabilities, offset by $102 million debt amortization. The average maturity of our debt portfolio slightly declined to 5.98%. as of June 2025, compared to 6.2 years in December 2024, and the portion at fixed rate is the 86% of the total debt. The average cost of our debt reached 4.9 as of June 2025, in line with our effort to optimize the financial cost. Regarding liquidity, we are in a comfortable position to support our capital needs for the upcoming month and hope for the next year's maturity. And finally, as of June 2025, we have available committed trade lines for 590 million dollars and cash equivalents for 320 million dollars. So, thank you all for your attention, and now I will pass the floor to Chalisa for the closing remarks.

Thank you, Simone. As I take part in my first earnings call as CEO, I'd like to extend my thanks to our shareholders and the broader investment community for your continued support of EnerChile. I step into this role committed to working with the NRChile team through an agile, data-driven approach, clarity in execution, and deeply rooted in operational excellence. This mindset will guide how we identify the seek opportunities, design and scale innovative solutions, and lead our team with clarity, purpose, and accountability. I look forward to fostering our culture of agility, productivity, resilience and innovation, confident that this approach will generate consistent and sustainable value to all our stakeholders. Now I would like to share the following closing remarks. We remain fully committed to our winter plan in the distribution business with a clear focus on ensuring services continuity and reliability. especially during the most critical months of the year. The timely completion of all infrastructure projects is progressing as planned, strengthening our ability to respond effectively within a robust risk management framework. This approach includes a well-defined risk prevention activities, improves organizational readiness, enhances our capacity to respond rapidly and supports increased recovery. Also, now that we have greater clarity regarding the regulation, we are set to begin construction of our best pipeline in the coming months. In parallel, we are proactively implementing managerial measures to mitigate impacts on our portfolio, those related to transmission constraints and asset unavailability. We are acting with flexibility and precision to identify key operational actions and deploying solutions to safeguard value and maintain system stability and rentability. At the same time, we continue to improve the foundations of our business model, which has consistently proven resilience in the face of external challenges. These ongoing managerial actions enhance our adaptability, reinforce our positioning, and support the delivery of sustainable long-term value. Now, let me hand it over to Isabella for question and answer session.

Thank you, Gianluca. Thank you, Simone. So let's now move on to the Q&A session. We will be taking questions this time via chat through the webcast. So the Q&A session is now open. So I will start here, Gianluca and Simone, with the first question we have received. The first question comes from Florencia Mayorga from MetaLive. The first question of , which is the main reason behind the higher energy losses in the distribution business? And she also, the second question is regarding higher gas sales in the generation business, how sustainable they are? Okay, Monica?

Yes. Losses in distribution increased once comparing 2024 versus 2025. One reason is higher electricity prices starting in the mid-2024, which led to more energy theft and the last year climate events. Some changes in customer habits also added to the problem. To fix this, we have made payment plans easier for customers. We have also added better tools to find that. And we are working with regulatory regulators to improve the rules and regulatory model. Chile still has lower losses than other Latin American countries, but we are watching the situation closely and working with teams in other regions to share what's working and reduce these losses.

Thank you, Gianluca. Then we have the second question regarding the gas.

Yes, okay. Okay. Our current guidance is between 80 to 90 million dollars for this year. We expect that the sale of gas surplus could be sustainable in the next few years, considering our availability. However, profitability and volume of gas trading will vary considering market conditions.

Okay, thank you very much, Gianluca. So now let's go to our second question coming from Beatrice Giannola from Mediobanca. So she has several questions. I go one by one, Simone. So the first one is from Hydrology. Okay, so she's asking that in the first half, hydro production is slightly above 50% of the full-year target, which gets confirmed. How do you expect hydro volumes to evolve in second half Do we expect that it goes down? And if you are comfortable with the four-year guidance, both in the hydrology and also in the, we understand also in the EBITDA numbers, if you are confirming.

Okay. So, the first step was very practical, but considering that we have many plants with reservoirs, and the reservoir was at the highest level at the beginning of the year, we achieved a very high level of production. July was a little bit of a surprise, it started a little bit dry, but in this moment it seems that the rain season has already come, it's a bit late. So also considering that we are expecting a lot of snow on the mountains, we are quite optimistic about the hydro production for the next month, but clear we'll go on monitoring the situation. And so we can confirm 10.7 terawatt hour that was our target in the first year of the stretch plan.

Thank you, Simone. So we are going to the second question from Beatrice. It's about the debt, the cost of energy. Can you share with us your current average cost of debt?

We have a very good cost of debt coming from the independence that we made in the past in a more favorable way. Condition, we start the year with 5%, but in this moment, the cost of debt is slightly decreased to 4.9%. Also due to our good news between long-term and short-term debt.

Okay, thank you, Simone. So, let me see now. We have a question coming from Francisco Pais from Santander. So the question of him is regarding the 2025 guidance as well. So considering the worst-than-expected energy market condition, also he's talking about the low hydrology and unavailability of generation plans, transmission issues, which led to higher spot market prices. Are you considering to adjust

your four-year year-end guidance in terms of it's done income and payout so thank you for the question francisco as we know we are a very well balanced company so we have many possibilities to react also to events and so also in the first half that as you commented was a negative us from the from the point of view of external pressure hydrology, air price, progress with the transmission line and everything we reacted and reached good results in line with our expectations and so we are sure that we can continue on this trend and so we confirm also the plan for the 2021.

Okay. Thank you, Simone. So I'm checking here. Okay, the next one is coming from Ruby Alvarado. Thank you, Ruby, for a question. So he has three questions, Simone. So I think I'll go one by one. So he's asking about, do you expect any additional impairments in the future related to Salinas project? It's the second one. I think it's one by one.

Okay, so let's talk about the project. This is an important project, a power plant with 375 megawatts in the initial project. We built the first 205 megawatts in 2020. and then the condition in the market changed. So what happened that we moved the destination of Aras to different projects, in particular to the construction of PMGD, so small solar power plant in the area. Considering that the market for this kind of project is reducing, finally we change the value of our assets to align the assets at the market level. And in this moment, the value of the assets after the last impairment is quite low, and we are not expecting any other impairment.

Okay, thank you, Simone. So the second question is, could you give us more color on the reduction cost in the distribution segment. So, yes, if sales in the distribution business were down, why do you see consolidated costs decreasing more than consolidated sales? Did you reach some additional efficiencies in terms of costs this year?

So, we are keep on working on distribution business. You know that this is for us. a core business, and for sure we are looking at the possibility of reducing the cost. For this reason, we launched some transition process and also some activity to contain the cost, and this is the main reason for the cost reduction. This is aligned with our policy, you know, try to increment the value of this business.

Thank you. So the last one is, what is the reason behind the year-over-year increase in the financial expenses in the quarter for energy?

The increase is related also to the increase of amortization. The reason is that in the last year, we had a large amount of projects under construction. And so we had the opportunity to capitalize on costs in the correct way in this project. And considering that this project starts producing energy, we will reach the COD, in particular for the huge project of LOSCOM. This year, we have a little bit changed the possibility to capitalize financial costs.

Thank you, Simone. So, the next one is coming from . Thank you, Felipe. So, the question is, thank you for the presentation. Question. All gas trading activities already were booked, or can we expect further impact of gas trading already done in the next quarters? Can you give us guidance regarding future gas trading activities in the current context of lower availability of Argentinian gas. Gianluca?

Okay, thank you. Thank you, Federico, for the question. In the fourth quarter of 2025, we signed an agreement to sell two LNG cargos for delivery in Europe. We are always looking for opportunities to trade LNG surpluses. The margin of the first cargo was booked in the second quarter of 2025 and accounted for $23 million. The second cargo will be sold and booked only in the fourth quarter of this year. As commented before, our current guidance for 2025 gas margin is between $80 to $90 million. And at the end, okay, yes, the last is, okay, regarding Argentina natural gas, we would like to clarify that we have a firm contract and our demand has been successfully delivered. Expect during one week in June due to the extreme weather conditions in Bacan-Weston.

Okay, thank you, Gianluca. So let me check here. Okay, we have from next one coming from Martin Arancet from Balance. And now so from Rodrigo Mora from Moneda. Actually, it's both are quite the same, no? So they are asking questions about the BED. They announced that BED investment in the presentation. So I'm reading here the question. What is the difference between the new battery investment plan and the previous one? How much do we expect to invest in the following two years? What are your expectations in terms of additional revenue from anterior servicing? This is the first one that is from Martin. Then I read some more names as well.

Okay. Thank you, Martin. So the best investment is in the same energy represented in the capital market day 2025-2027. And so we are not considering in our numbers yet ancillary system revenues.

Okay. Thank you. So from Rodrigo Mora, Moneda Patria, so thank you for your participation. Let me see here. I have one question. Could you give us more color about the best program? The 567 megawatts that you announced, how many hours is your battery that you're considering, and they schedule that this capacity will be ready? And could you give us more information about the new wind farm project announced during the strategic plan 2025-2027? Thank you very much. Gianluca?

Okay. The investment is around 400 million in three bed projects. Forty-fifty-three megawatts in total of four hours. with the code in the 2027. The wind farm projects announced during the strategic plan are still in the business plan, but with a further code than best projects.

Okay. Thank you, Gianluca. I'm going now to a new one from . She's asking about the money. So the debt, when you're expecting to address the 2027, 2028 bonds of energy, the 1 billion yen bonds?

So thank you for the question. And this is really not the high gap material that we have in the medium debt. But in this moment, it is a little bit early to make plans about debt. But we can say that in general terms, we continuously evaluate liability management alternatives to optimize our financial costs. And so our analysis that already have been started include many financial options like issuing bonds or for example, security, long-term loans, and so on. But maybe we will be more involved in this issue in the next months.

Okay. Simone, we have another one for you, coming from Juliana Young from UBS. She's asking about the investment, no? If we are seeing Let me ask the other question. Where do you see most attractive investment opportunities for a subsector standpoint? Renewables plus debt or distribution of transmission? What about dividend share by debt? Do you have a program of share by debt in your company? Thank you. I'm now so sorry. There is another one that I keep here. And if you can provide more call on the CapEx plan of the company as well.

Okay, so the first one, please, can you remind me about where our investment? Okay, I remember. And then I will ask for the next. For our investment, we try to optimize the investment in all areas, I mean in generation and also in distribution. In generation, for sure, at the center of our strategy, there are the projects for hybridized renewable power plants, mainly in the north, mainly solar power plants through BES. But also we are considering many other opportunities, for example, also to build or maybe to buy also power plants in other areas of the country. And talking about distribution, we are investing as much as we can, considering our cash flow that is impacted by our current remoderation model. And these investments are mainly devoted to increase the resilience of the Greeks, also considering that this very destructive climate event, it seems that will occur in the future more often. So all our efforts will take place. Second, talking about share buyback, this is something that is not in the end of the management, it's a decision of the assembly of the launch rollers, always is an opportunity for a company that has a very good and solid line of action. So, this opportunity can be used, but in this moment, I don't have any specific thoughts about that.

Okay. Thank you, Simone. So, the other question on Juliana is also about the CapEx plan of the company for confirming

So we are confirming for the moment that the current plan, as we have commented during the presentation, we have a little bit delay in 2025 CAPEX because we studied deeply the investment in BESS. We also expected the very good news from the regulator about the participation of BESS on the complementary services market. But we are going to start in the very next days. But this will be delivered with some more delay compared to the plan. And we will talk about further opportunity in our plan presentation further.

Okay. Thank you, Simone. So the next question is coming from Fernando Salis from BTG. So he has welcomed you, Gianluca, from the company, and thank you for the presentation. He has two questions. The first one is the proposal of nonconciliatory services remuneration from energy storage for the CNE is a positive step, but it is far from ideal as it doesn't see many incentives. Your decision as a company to launch the new BEST project is because you expect the initial proposal to be approved before it has been made public, considering all the comments that were sent over the coming weeks. The second one, have you gotten any feedback from the C&E? The other question is, the new BEST project will hybridize existing solar in the north, or are you looking to develop a standalone asset? Thank you for your questions.

First of all, thank you, Fernando. You're welcome. So the first question, the new artillery services proposal will allow capture higher spot prices with independency of the best dispatch by coordinator. And the amount of the second question, okay. We have, so we have a battery storage project totaling 450 megawatts, like before, for four-hour duration in northern Chile. And we expect to share important updates in coming weeks. Our wind project remain on track and fully aligned with our current plan. Finally, the BES project will advertise the existing ED plants in northern of Chile. The new BES capacity main goal is to improve our non-solar hour production rather than providing ancillary services.

Thank you, Gianluca. So we have the last question here. The last one is coming from Rodrigo Mora, Moneda Patria. The question here. So the first one is related to the incentivized retirement plan included in this quarter for the company. Could you give us to the investors, more information about the speed by subsidiaries, not by segments. And also, he asked a question about the availability of some renewable assets of the company. He's saying that Guanchon is generating less than one-third of one year ago, and the geothermal plant, Servo Pavilion, has known a reduction of energy generators. So can you give more information about the actions that the company is taking to recover this capacity of generation?

So, Rodrigo, thank you for your questions. First of all, talking about the reorganization of the company, it's a very important project that will improve our internal efficiency in the future. And so this plan goes to all the groups. We have Chile, 5 millions of the impact are on generation area, more or less the same amount on distribution area, but we are also looking at the services areas. Talking about our solar assets, yes, it's true, we are producing a little bit less than expected, and the reason is that we anticipate some maintenance activity Thank you. During this first half, we come to finish the job in other few weeks, maybe in September, we should be ready. And this is due to some problems, but also I want to stress that this kind of issue are covered by the issuance of the and we shall cover the costs of the maintenance, but also partially the loss production, so it is very important. Then, talking about several rayons, it's true that we are producing less. We are producing two out of three turbines, but the three turbines are correctly functioning. The fact is that we have a little bit less of fluid And this is the natural evolution of the wealth, but we have planned already an intervention with a specific machine to be transported in the site to recover the full efficiency of the wealth. And so by the end of the year, we should be making this market accessible.

Good morning. So now is our last question. So from Fernando Salles, BPG, on the distribution now, Gianluca. So has there been any progress on the change to execute investment in resilience in REITs and be recognized in the asset base earlier?

Okay. Thank you for your question. No progress so far. But as Enel are actively advocating for the need to transition to a new model based on real assets, a significant investment in the network will be required to address the increasingly frequent effects of climate change. And so the higher electrification expected and the growing penetration of renewables in the system. So this is our site.

Okay. Thank you very much, Gianluca. Thank you all connected. So if there is any other questions or any other information you may need, our investor relations team will be available. Thank you very much. Have a good week.

Thank you.

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