Enel Chile S.A.

Good morning, ladies and gentlemen, and welcome to NL Chile first quarter 2026 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 ask a question during the session, you will need to chat through the webcast. 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 statements may include an LGLS essay, current expectations, intentions, plans, beliefs, and projections. Forward-looking statements are based on management's current assumptions and expectations. Do not guarantee 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 the NNL Chiles press release on its first quarter 2026 results in the presentation accompanying this conference call, NNL Chiles, Annual Report on Form 20-F on the Risk Factors. You may access our first quarter 2026 results press release and presentation on our website, www.nl.cl, and our 20F on the SEC's website, www.sec.gov. Readers are cautioned not to place under reliance on these forward-looking statements, which speak only as of their dates. NLCHL 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 Ms. Isabella Clemes, Head of Investor Relations of NLCHL. Please proceed.

Buenos dias, good morning, and welcome to UNL Chile's 2026 First Quarter Results Presentation. We greatly appreciate you taking the time to join us today. My name is Isabela Clemes. I'm the Head of Investor Relations. Joining me this morning are our CEO, Gianluca Palongo, and our CFO, Simone Conticelli. Our presentation and related financial information are available on our website, www.unl.cl. in the investor section, as well as through our investors 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 webcast chat through the ask a question link. Media participants are connected in listening mode. Gianluca will kick off the presentation by covering key highlights of the period. our portfolio management actions, and providing updates on the regulatory contest. 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 the call to Gianluca.

Thank you, Isabella. Good morning, and thank you for your participation. Let's start the presentation with our main highlights of the period. Let's begin with portfolio management. During the quarter, hydrological conditions were favorable, which helped us reduce portfolio risk and supported a stable operating performance across the business. We will come back to this point in more detail later on. At the same time, through IGP Chile, we started the construction of three battery energy storage projects in the northern part of the country. These base projects will add around 0.5 GW of additional capacity and will play a key role in strengthening the flexibility of our portfolio while supporting our commercial strategy. In addition, Enel Generacion Chile signed a new LNG supply agreement with Shell. This agreement allows us to better valorize surplus gas volumes already available and to optimize LNG and Argentine gas supply for our generation business. Importantly, this initiative is fully aligned with our long-term business vision for Chile. This is particularly relevant in the context of the growing deployment of battery energy storage systems, which are essential to ensure a more flexible and efficient portfolio. Let's now move to the country and regulatory context. Starting with the VAD 2020-2024 process, tariff resettlements have been postponed until July 2026. At this stage, the regulator is working on alternative solutions to fund this payment, with the objective of avoiding any impact on regulated customers' tariffs. turning to the VAD 2024-2028 process. During the quarter, the regulator published the Preliminary Technical Report Volume 2 in January 2026. Over the next few months, we are awaiting the publication of the final report. Let's now turn to business profitability. The first quarter of 2026 delivered consistent financial results. EBITDA showed a solid improvement compared to previous years, plus 16% during the period. The Extraordinary General Meeting approved a capital increase of CLP $360 billion at Enel Distribución Chile, reinforcing the company's balance sheet and overall financial flexibility. In addition, the Annual General Meeting approved the final dividend, fully in line with our commitment to shareholder returns and value creation. In the next slides, we will go deeper into each of these areas and provide further details on the key drivers behind these results. Let's move to slide 4 to talk about hydrology and the progress of our battery energy storage project. Let me begin with our hydro generation. Hydrogeneration during the quarter remained broadly in line with last year's level, as shown on the left-hand side of the slide. For 2026, we are forecasting hydrogeneration at 10.7 TWh. This assumption is based on a conservative view on hydrology, fully consistent with the average evolution observed over the last 13 years, that allows us to confirm our 2026 guidance. This is the case even though the probability of an El Niño event has increased in recent weeks, with potential impacts mainly expected in the second half of the year. This level of performance is supported by our well-diversified hydro portfolio, together with continuous operational optimization. Moving now to gas activities. On gas sourcing, we have signed contracts with Argentine gas suppliers With a longer tenor compared to previous years, this contract secured firm volumes at more competitive prices, providing stable supply until April 2027. In parallel, in the context of high gas prices and a more flexible demand outlook for our thermal fleets, we concluded a negotiation related to our long-term LNG agreement, this approach is well aligned with our view of a gradual ramp-up of battery storage in the coming years, supported by a solid and reliable gas supply from Argentina. Finally, let me focus on battery storage. We continue to strengthen our generation portfolio through the development of battery energy storage systems. These investments will increase the flexibility of our portfolio and support the long-term resilience of our generation mix. In addition, they will continue to optimize our sourcing strategy. In this context, approximately 450 MW of new battery capacity are currently under development and will gradually start operations from 12-27 ahead, in line with our planned investment schedule. And now let's move to slide 5, where we will review our generation portfolio and the energy balance. Let me start with our generation portfolio. We entered 2026 with a solid and well-diversified portfolio. In fact, our total net installed capacity stands at 8.9 GW, of which 78% comes from renewable energy sources and BSS. Therefore, this structure enhances flexibility and supports a balanced and resilient energy mix. Moving now to our energy balance. During the first quarter of 2026, net production remained stable compared to the same period last year. This performance reflects the flexibility of our generation portfolio. higher contributions from wind solar and efficient natural gas combined cycles more than compensated for the slightly lower hydro generation physical energy sales amounted to seven point five ter what hours fully in line with the level recorded in the first quarter of last year. This confirms the stability of our commercial positioning, supported by our diversified sourcing mix. On energy purchases during the quarter, we maintained a similar purchasing mix compared to last year. This included 1.3 TWh of net spot market purchases and 0.8 TWh sourced from third parties. And now I would like to take a moment to share with you some key topics related to the distribution business, which we will cover on the next slide. Let me start with the tariff review shown on the left-hand side of the slide. We are in the 2024 to 2028 distribution tariff review process. In January of this year, the regulator released the second version of the technical report. The remaining technical steps are expected to lead the final tariff determination in the second half of 2026. Overall, the review is progressing in line with the regulatory timetable. Turning now to the VAD 2020-24. The settlement of the outstanding debt with distribution companies, which was originally scheduled to begin earlier, has been postponed to July 2026. For annual distribution, the amount to be received is around 65 million US dollars, while at the distribution sector level, the total amount involved is approximately nine hundred million u s dollars we remain confident that the process will progress toward the prompt resolution considering its relevance for the sector and the need for orderly completion Turning to distribution reform, we continue to see constructive and positive engagement from stakeholders, together with a growing and broad consensus on the need to further evolve and modernize the distribution framework in Chile. This is particularly important in the context of electrification and considering the long-term nature of distribution investments. Finally, a few words on grids and execution. We continue to reinforce specific parts of the network, while at the same time expanding digitalization and remote control solutions across the network. These actions allow us to restore service faster, improving customer experience and strengthen the flexibility and resilience of our networks. Overall, execution and distribution remain solid, with a clear and continued focus on service quality. And with that, I will now hand over the presentation to Simone.