Enel Chile S.A.

Good morning, ladies and gentlemen, and welcome to the NL Chile's 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 and before looking statements 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. NLChile 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, our CEO Gianluca Palumbo and our CFO Simone Conticelli. 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 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 of business across the 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, a replay of the call will soon be available. At the end of the presentation, there will be an opportunity to ask questions via a webcast chat through the Ask a Question link. Media participants are connected in the listening room. Gianluca will quick off the presentation by covering key highlights of the period and the country energy context. He will also delve into our portfolio management actions and provide updates on the regulatory context. 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 networks 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. 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 tariff. As I will explain later, it enables us to begin recovering larger portions of PEC 1 and provides greater visibility over 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 2025, we delivered an EBITDA higher than the same period last year. This strong performance was further supported by a positive FFO 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 on the 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 PES, 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 contract 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 dams. 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 TWh, mainly due to lower sales to regulated customers following the expiration of regulated contracts. During the second quarter of 2025, physical energy totaled 7.4 TWh, 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 hot 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 slide 7. 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 BAD 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 targets in July 2025, the degree for the second half of 2025 PNP was published. This degree 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 VEBAS in the ancillary service market by recognizing the costs 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.