Half Year 2025 Enel Chile SA Earnings Call

Gianluca Palumbo: Good morning, ladies and gentlemen, and welcome to the Enel 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 Privacy Security 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 Enel Chile's press release reporting its first half and second quarter 2025 results. The presentation accompanying this conference call and Enel Chile's annual report on Form 20F included under risk, sorry, included under risk factors.

Good morning, ladies and gentlemen, and welcome to the nose. 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, we may make statements that constitute forward-looking statements within the meaning of the Privacy security, litigation Reform, Act of 1995 such for looking statements. Reflect only our current expectations are not guarantees, a future performance and involve risk and uncertainties.

Actual results May differ materially from those anticipated and the forward looking statements, as a result of various factors, these factors are described in Noahs. Press release reporting its first half and second quarter 2025 results, the presentation.

Gianluca Palumbo: You may access our first half and second quarter 2025 results press release and presentation on our website, www.enel.cil, and our 20F on the 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. Enel Chile 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. Isabela Klemes, Head of Investor Relations of Enel Chile. Please proceed.

I mean this conference call and and look at any report on form. 20 F included under wrist, sorry. Included under risk factors, you may access our first half and second quarter, 2025 results, press release and presentation on our website www.no

And our 20 F on a sec's website. Www.sec.gov readers are cautioned to not place under Reliance. On those before we looking statements which speak only as of their dates undertakes. No, obligation to update these forward looking statements or to disclose any development as a result of which these 4 looking statements become inaccurate except as required by law. I would now like to turn the presentation over to Mrs. Isabella Clemens, head on investor relations of no Chile, please proceed.

Isabela Klemes: Buenos días, 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 Isabela Klemes. 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 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 Company Argentina.

House results, presentation.

We greatly appreciate the you take time to join us today. My name is

Role of Chief Executive Officer of an El chili on July 1st.

The Loca is an electrical engineer. A graduate of University of Naples Federico second and brief. Nearly 3 Decades of experience within a group.

Isabela Klemes: Most recently, Gianluca served as Head of Global Construction Operation and Maintenance for the entire distribution and business across the Enel Group. Our presentation and related financial information are available on our website, www.enel.cil, 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 mode. Gianluca will kick off the presentation by covering key highlights of the period and the country energy context. He will also delve into our portfolio manager 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.

Throughout his career, he has held several strategic leadership position, including head of Global Network development for all distribution business lines with CNL and general manager of the 2 and Distribution Company. Argentina. Most recently, John Luka, served as head of Global Construction operation and maintenance for the entire distribution of business across the group.

Our presentation and related financial information are available on our website www in the investor station, as well as through our investor app. In addition, our playback 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, leave media, participants are connected in the listening. World januka will quick off the presentation by calling Queen highlights of this year and the country energy content.

You also delve into our portfolio manager, actions and provide the update on the regulatory content.

Following that simony will offer an overview of our business, economic and financial performance.

Thank you all for your attention. And now, let me hand over to januka.

Gianluca Palumbo: Thank you, Isabela. 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. These rules are largely driven by transmission constraints throughout the period, as well as the 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.

To be speaking with you today.

Together with our senior leadership team, I 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 itro generation remain 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 that being offset our spot Market purchases.

This activity continues to be a key tool in navigating current market dynamics and is expected to remain at the relevant level throughout the year.

Gianluca Palumbo: Now, moving on to our distribution segment. At the same time, we have made solid progress with our Resilience and 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. For instance, once applied, we are using generation units to support service restoration during network recovery.

Now, moving on to our distribution segments.

At the same time, we are 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 service restoration times.

This is a key part of our strategy to ensure long-term reliability and improve our operational continuity.

We have also implemented a new vegetation management control program carry out in close coordination with local municipality and relevant regulatory entities.

This initiative aimed to prevent service disruption and further secure the stability of our infrastructure.

Gianluca Palumbo: 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 BAD 24-28 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 tariff decree for the second half of 2025 was published in July. This update adjusts the energy component of regulated tariffs. As I will explain later, it enables us to begin recovering a larger portion of PEC 1 and provides greater visibility over cash flow for our generation business.

Additionally, we have introduced new procedures for managing grade failures more efficiently. For instance, once supplied, we are using generation units to support service restoration during network recovery.

This announcements are part of our broader strategy to boost system resilient 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. 24/28 consultant report, and the publication of a new regulation on best ancillary services.

I will share more details later.

In the meantime, the PNP regulated tariffs degree for the second half of 2025 was published in July.

It adjusts the energy component of a regulated tariff.

As I will explain later it enable us to begin recovering, larger portion of back 1 and provides greater visibility over cash flow for Our Generation business.

Gianluca Palumbo: 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 firm performance was further supported by a positive FFO driven by $261 million dollars 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 scenarios, 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 regulations and deeply analyzing several market scenarios for Chile and observing the cost of evolution of the plans, we are ready to formally launch construction of our best investments.

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 EPA higher than the same period last year.

This prompt performance was further supported by a positive SFO driven by $261 million received from the stabilization energy mechanism.

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 headwind. Also by evolving climate scenario. While also advancing our investment program across both our generation and distribution businesses.

Now, turn it to generation Investments.

After gaining confidence in proposed ancillary Services regulation and deeply analyzing several Market scenarios for chile and observing the cost of revolution of the past.

Gianluca Palumbo: 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 unavailability of the transmission line connecting the northern and central regions of the country, mainly in April and June, which led to significant system decoupling.

We are ready to formally launch construction of our best investments.

This project will be deployed in the northern Chile. Adding around 0.5 gigabytes of battery energy storage to our portfolio within the next 2 years.

This marks a significant milestone. It reinforces our commitment to Chile and demonstrates the strength of our strategy to continue serving both regulating and free market segments.

Now, let's move to slide 4 to talk about the country's Market situation.

The national electricity system has been affected by several factors including

poor ethological conditions, both scheduled and unscheduled and maintain its across various thermal power plants and the temporary and availability of the transmission line. Connecting the northern and Central regions of the country mainly in appeal and June, which led to significantly system decoupling

Gianluca Palumbo: All these factors combined led to an increase in spot price in the 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 hydrogeneration 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 the 2025, we expect hydrogeneration to reach around 11 terawatt-hours.

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 astrology, front cumulative. Rainfall as expected has been lower than in the same periods of 2024,

Nevertheless, the hydrogen generation during this period was close to last year's levels.

Therefore we we are maintaining our hydrology guidance for the year in line with the average observed over the past 10 years.

For 2025, we expect hydrogen generation to reach around 11 peraba Towers.

Gianluca Palumbo: 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 the 2024 storage in our dams. Thanks to our robust and diversified gas position, we were able to capitalize on favorable trading opportunities across both local and international markets during the period. This demonstrates the expected 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 sources and battery energy storage systems.

Despite these challenging scenarios, we have managed to navigate them.

thanks to our solid and long gas supply position, which includes

our long-term LNG contract with the shell Adventure dinner gas, supply, the full availability of our efficient thermal capacity and strategic water results from favorable rainfall into in the 2024 storage, in our dense,

Thanks to our robust and diversified guys position, we were able to capitalize on favorable trading opportunities across both local and international markets during the period.

This demonstrates the effective complimentary within our portfolio.

Moving on to slide 5.

Let's show you our generation portfolio and energy balance, taking into account the system constraints. Adjust the outline.

Gianluca Palumbo: Net electricity generation decreased 5% compared to production as of June 2024. This decline was driven by lower hydro dispatch during the first quarter of 2025, reduced renewable generation, and increased the containment levels caused by transmission line limitations already mentioned. However, this was partially offset by higher contribution from our efficient thermal power plants. During the second quarter of 2025, net generation declined to 5.9 terawatt-hours, mainly due to the reduced renewable generation already mentioned. In the first half, our energy sales almost reached 15.1 terawatt-hours, 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 terawatt-hours, lower than the second quarter of 2024, mainly due to reduced sales to regulated customers and free clients.

Which includes a total net installed capacity of 8.9 gigabytes 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 it.

However, this was partly offset by higher contribution from from our efficient thermal power plants.

During the second quarter of 2025, net generation declined to 5.9, terava Tower, mainly due to the reduced renewable generation already mentioned it.

In the first half, our energy sales almost reached 15.1 terawatt-hours, mainly due to lower fees. To regulate the customers following the expiration of regulated contracts,

During the second quarter of the 2025 physical energy total 7.4 keramat power lower than the second quarter of 2024 mainly due to reduced sales to regulate the customers and free clients.

Gianluca Palumbo: 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 slide seven. 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.

In the, in the, in this first semester, as you can see, in the slide, we reduce our purchases from third parties and also our sport 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 dollars.

The consultants' final report on the 2428 bad is expected to be delivered and published in the coming weeks.

We estimate the regulator.

We will release the preliminary technical report for this new cycle in the second half of 2025.

Gianluca Palumbo: In relation 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 towards improved regulatory. Now, on tariffs in July 2025, the decree for the second half of 2025 PMP 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 the right-hand side of the slide to review updates on important changes in the regulatory framework currently under discussion.

in relation to the 2024 vad process, we remain monitoring the resolution from the superintendency of electricity and fuels, which will establish the timeline for defining that to stand that in favor of Distribution Company 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 decree allows the recovery of cash in our generation business for an amount of around 48 million, in the next 6 months,

Related to the pack across, as of June 2025, we had an account receivable related to the pack.

Of around 164 million dollars.

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.

Gianluca Palumbo: 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 distribution companies 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 the so-called Bolsa Pime Initiative are still under discussion. Regarding the remuneration of ancillary services for battery energy storage systems, we expect regulatory updates in the third quarter of 2025. The proposal presented by the National Energy Commission seeks to encourage the participation of the best in the ancillary service market by recognizing the costs associated with their delivery, given the systemic benefit that their inclusion would entail.

The proposal to expand the electricity subsidy for the country's most vulnerable as old continuous under the stock under discussion.

So far, the measures approved to date are additional net VAT related to the tourist increase.

increased the amount of compensation that 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 the so-called BSA initiative are still under discussion.

Regarding the remuneration of ancillary services for battery energy storage systems. We expect regulator regulatory updates in the third quarter of 2025

The Proposal presented by national energy commission, 6 to encourage the participation of the best in the ancillary service Market by recognizing the cost associated with their delivery given the systemic benefits that their inclusion would entail.

Gianluca Palumbo: 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 economical performance.

to this end, the calculation methodology of the for the opportunity cost is proposed to mitigate the risk of forgoing participation in energy Arbitrage

Next, our CFO simony will be present a review of our financial and economic performance.

Simone Conticelli: Thanks, Gianluca, and good morning, everyone. I will start by reviewing the highlights of our performance over the period. Before we start commenting the first half results, let me remind that as of January the 1st, 2025, Enel Chile changed its functional currency from Chilean pesos to 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 a brief overview of our financial performance. As shown on the slide, in the first half of 2025, EBITDA reached $659 million, representing a 10% improvement compared to the last year's figures. The improvement is mainly driven by strong subsidy performance in generation and improved gas trading activities, which more than offset the negative impact of regulated CPAs expirations and transmission line constraints.

Very thanks. Juga. A good morning, everyone.

I will start by reviewing the highlights of our performance over the vision.

before we start commenting in the first part, we have let me remind that as of January the 1st 2025, and Chile changes, its functional current, it from from pesos to US dollar,

For comparative purposes includes presentation, the first half and the second quarter 2024 figures are converted using the average exchange rate of the videos.

And now, let's take a look at that. Brief overview of our financial performance.

As shown on the slide in the first half, 2025 it be the reach 659 million representing a 10% Improvement compared to the last year figure.

The improvement is mainly driven by strong, successful performance in generation and improved gas trading activities, which more than offset the negative impact of regulated PTA, expirations, and transmission line costs.

Simone Conticelli: The June transmission line constraints particularly impacted the second quarter EBITDA, that slightly decreased by $10 million compared to the second quarter of 2022. 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 V&A, while in the second quarter, net income amounted to $71 million. The first half SLAO showed a significant improvement compared to the last year, reaching $410 million, 7.8 times the previous year's figure. And the second quarter SFO 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 PEC. We'll go into more details later in the presentation.

The June transmission line cost train particularly impacted the second quarter EPA. That's slightly decreased by 10 million dollars compared to the second quarter of 2020.

Going to the net income, the first half of net income amounted to $246 million, representing a decrease of 8% compared to the previous year, mainly due to the higher DNA. While in the second quarter, net income amounted to $71 million.

The first show that a significant Improvement compared to last year reaching 43 million dollars.

7.8 times the previous year figure.

And the second quarter after 4 reached 295 million that means 357 million higher than the results of the same period of 2024.

The increase is driven mainly by the previously mentioned and Improvement in and the recovery of pounds associated with back.

Simone Conticelli: And so now, 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 grid investments. 31%, or $48 million, supported thermal projects. 29%, or $45 million, was invested in renewable and storage. The grid focus, as previously explained by Gianluca, remains on the resilience program, reinforcing the infrastructure to reduce vulnerability to climate-driven disruptions. The priority for the 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 MGD program, enhancing hydro fertility performance and maintaining fleet availability.

We'll go into more details later in the presentation. And so now moving uh let's move to the next slide. Uh to review the progress made on capex.

157 million is the first half, mostly censored on Greeks and powerful and free 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 dollars was invested in renewable and Storage.

The Greek Focus as previously explained by juga remains on the resident program reinforcing infrastructure to reduce vulnerability to climate driven destruction,

The priority for 3 month. Segment is the maintenance and performance enhancement of the power plant rate.

Centered, our efforts on finalizing gd's, program, enhancing advocacy performance and maintaining sleep.

Simone Conticelli: 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, Sintero, and San Isidro CCGT, and grids correcting maintenance and digitalization. Development CAPEX was $38 million, primarily driven by the complexion of the 2024 investment program for the MGD 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 road improvements. And now, let's move to the next slide, which presents a detailed view of our second quarter EBITDA. 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.

To break down by nature, the measurement capex totaled $89 million, accounting for 57% of the total complex.

Mostly used for the maintenance of Atacama.

And Greek correcting maintenance and digitalization.

Development capex, was 38 million primarily driven by the complexion of 2024 investment program for

Entities.

And the investment for Greek reliability announcement and telecontrol deployment.

The 2025 development capex, search for battery-related projects, has been partially declared for 2026.

Customer capex, portal at 30 million dollar mostly focused on low and medium ballpark connection projects and initiatives to support growth companies.

and now, let's move to the next slide which present edited view of our second quarter, it

Simone Conticelli: Starting with generation business, we recorded a decrease of $106 million in CPA sales, primarily due to the termination of some high-priced regulated contracts that impacted on volume and average price of the regulated portfolio, partially offset by the negative impact of exchange rate purchases recorded in 2023. Going to the sourcing, we recorded a positive effect of $92 million despite the negative impact of $23 million due to the transmission line constraints and interruptions, particularly in June. The good performance is primarily explained by lower costs in the spot market, mainly due to the lower energy volume purchases and lower third-party purchases. Regarding gas optimization activities, we achieved a positive contribution of $25 million, thanks to increased gas trading deployments for the total of 6.4 terabytes during the second quarter of 2025.

In the second quarter of 2025, are you the reached 293 million representing it? Why decrease of 10 million compared to the same period of 2024? Let's go to the main reason for the performance differences.

Starting with generation business, we recorded a decrease of $160 million in PPA sales, primarily with you today. The termination of some high-priced regulated contracts impacted the volume and average price of the regulated portfolio.

Partially offset by the negative impact of the exchange rate. Register recorded in 2024.

Going to the sourcing with recorded positive effects of $92 million, despite the negative impact of $23 million due to the transmission line for stream and interruption, particularly insured.

The good performance is primarily explained by lowest cost in the sport Market, mainly due to the lower energy volume or shape.

and lower surface for

The Guardian gas optimization activities have led to a positive contribution of $25 million, thanks to increased gas breeding volumes for a total of 6.

Point 4, the update during the second quarter of 2025.

Simone Conticelli: Regarding our grid business, we recorded a positive impact of $7 million, mainly driven by a provision reflecting the higher tariffs expected for the 2024-2028 regulatory remuneration figures, partially offset by a higher cost during the quarter, mainly due to increased maintenance activities and strengthening the grid. We also recorded a negative impact of $14 million, mainly due to generation costs related to the new development capacity that is starting to operate 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 plan to support the company reorganization aimed 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.

Regarding our business. We reported a positive impact of 7 million, mainly driven by a provision reflecting, the higher targets expected for the 2024 2028 regulatory removal,

Partially offset by at higher in the for that mainly due to increased maintenance. Activity of M explaining the G

We also recorded a negative impact of fulfilling million-dollar mainly due to generation costs related to the new development capacity.

That start being operated after June 2024.

And maintenance activities.

Finally, in the second quarter of 2025, we recorded external cost 1 of the effects.

Mainly for the incentivized earlier, retirement plan.

To support the company, reorganization Ms at improving, uh, internal performance.

And now, let's move on to the next slide to review the main impacts on individuals during the first...

Simone Conticelli: In the first half, our EBITDA 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 CPA sales, mainly due to the termination of high-priced regulated contracts, partially offset by the negative impact of exchange rate purchases recorded in 2024 and the positive price set due to the indexation of free market contracts. Regarding sourcing, we recorded a positive benefit of $189 million, despite the $34 million negative impact due to the transmission line restrictions following the February blackout and the additional second quarter issues. The result was obtained thanks to lower spot market and third-party energy purchase costs, energy settlement for previous periods, reduced transmission costs, and finally, lower production costs thanks to the efficiency of our thermal power plant.

In the first up, RB the reach at 669 million representing an improvement of 62 billion dollars compared to the same period of 2024.

Starting with the generation business, we see a decrease of $155 million to $223 billion in high-priced, regulated contracts.

Partially offset by the negative is part of exchange rate pages record that in 2024.

Due to the index section of 3 Market contracts.

Regarding sourcing, we recorded a positive benefit of $189 million, despite the $34 million impact due to the transmission line restriction following the February blackout, and the additional...

second quarter issues.

The result was obtained. Thanks to lower spot market and third parties. Energy, Purchase cost.

Energy settlement for previous periods.

The user transmission costs and, finally, lower production costs, thanks to the efficiency of our thermal power plants.

Simone Conticelli: In the first half of 2025, gas optimization activities contributed for $22 million, also thanks to the increase of 5.9 terabytes in trading volumes versus the same period of 2024. On the grid business, we recorded a positive impact of $34 million, primarily driven by two factors: the provision reflecting the higher tariffs expected for 2024-2028 regulatory remuneration period and the favorable effect of tariff indexation. As outlined in the quarterly analysis, in the first half, we recorded an increase of generation costs due to the new development capacity and the maintenance activities. Finally, as previously explained, we have a non-recurring 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.

In the first half of 2025, gas, optimization activities contributed for to 2022 million dollars. Also, thanks to the increase of 5.9 that are with you in trading volumes versus the same, the same period of 2024.

On the G business, we recovered a positive.

Impact of 34 million, primarily driven by 2.

The provision of reflecting a higher status aspect.

2020.

And the far more powerful effects of Paris, indexation.

As outlined in the portfolio analysis,

Of a generation course, due to the new level capacity and the maintenance active.

Finally, as previously explained, we have a no effect of the million dollars related to the companies reorganization.

And now, let's move on to the next slide, where we will review the net income Revolution.

Simone Conticelli: Our first half 2025 net income reached $246 million, a decrease of 8% compared to the last year's figures, mainly explained by a reduced EBITDA by $60 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 a decision not to proceed with the new PMGT solar project, initially planned for development in this area. And finally, the increase of grid bed depth provisions amounting to $6 million, mainly driven by higher average invoice amounts due to the rise of tariffs. Regarding financial results, we recorded a negative variation of $28 million, mainly explained by the lower capitalized expenses on renewable projects, the 2024 interest on tax receivables, partially offset by lower financial expenses and positive foreign exchange differences.

Our first quarter of 2025 net income reached $2,466 million every 3 weeks, an 8% increase compared to last year's figures, mainly explained by the $62 million.

Offset by.

Higher representation and motivation impairment, and better expenses for $66 million. Mainly due to.

The commission of new, renewable capacity amounting to 20 million.

The 29 million impairment. Followed up decision not to proceed with the new pmgd. Solar project initially a planned for development in this area.

And finally, the increase of grids that that provisions amounted.

$6 million, mainly driven by higher averages in more and more due to the rights of...

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 04.

Simone Conticelli: We also recorded a $3 million increase in the income taxes, mostly due to the increased results. Opposing on the quarter, net income decreased by $39 million, mainly due to a $10 million decline in EBITDA, a $41 million increase in depreciation, amortization, and bed depth, primarily due to the operation of a new renewable capacity and the commented impairment. And finally, a $12 million decrease in income taxes, mainly due to the lower results recorded in the second quarter of 2025 versus the second quarter of 2024. 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 FFO compared to the same period in 2024. Our FFO reached $403 million, representing an improvement of $351 million compared to the first half of 2024. This is due to the following factors.

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 Improvement results.

Focusing on the for the net income, decreased by 39 million, mainly into 2, 10 million dollar decline in a pizza 41, million dollar in increase in degradation and multiplication and methods. Finally, this is the operation of a a new renewal for capacity and

How may I assist you?

And finally 12 million degrees in income taxes mainly due to the lower results. Reported in the second quarter of the 2025 versus the second quarter.

2024.

And now, uh, let's move on to the FSO analysis on the next slide.

Let's analyze the effect of composition for the first half of 2025 and the main effects compared to the same period in 2024.

Simone Conticelli: First, EBITDA amounted to $659 million, with a positive variation of $62 million as previously exposed. Second, the $269 million recovery of tax receivables in the first half of 2025, mainly due to factoring execution in April 2025 related to PEC 3. It's worth mentioning that we observed a positive FFO balance of $416 million versus the first half of 2024, thanks to the annual accumulation of PEC receivables started in October 2024. Third, the working capital increased by $256 million, mainly due to the development CAPEX payments and seasonality on energy payments. The increase was higher by $102 million versus the previous figure, mainly due to the negative effect of energy payment scheduling and the increase in energy distribution receivables due to the increase in the tariffs. These effects were partially offset by lower CAPEX payments related to the new renewable capacity.

This is you to the following Factor.

First, the amount that is $669 million, with a positive variation of $6 billion, was reported 2 years ago.

second 269 million recovery of tax receivable in the first half of 20135,

Mainly due to filings executed in April 2025 related to tax fees.

It's worth mentioning that we observe a positive F of virus, 460 16 million just to the first report. Thanks to the end of accumulation of paper, started in October 2024,

So, the working capital increased by $256 million, mainly due to the developers' topics payment and seasonality in energy payments.

The increase was higher by 116,000 versus 2 user mainly due to the negative effects of energy, payment scheduling. And the increase even distribution received reports due to the increase.

In the study.

This affects well passion of by lower traffic payments related to the new renewal profitability.

Simone Conticelli: Four, 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 $60 million compared with the first half of 2024. This difference is mainly due to the increased tax payments in the generation business, driven by both higher results and higher monthly payments starting. And finally, financial expenses amounted to $82 million, mostly due to the bed depth related costs. This represents a reduction of $38 million compared with the first half of 2024, mainly driven by a lower average debt this year. And now, let's take a look at our liquidity and leverage position. Our growth depth increased slightly by $40 million to $3.9 million at the end of June 2025 compared with December 2024.

for the income taxes, impacted on fso by 187 million, mainly due to tax payment in the generation business,

Income taxes paid in the first half of 2025 were higher by $16 million compared to the first half of 2024. This increase is mainly due to the receipt and text payment in the generation business, driven by both higher results and higher monthly payments.

and finally Financial expenses and monthly to 82 million, most visited cost

This represents a reduction of $30 million compared to the first half of 2024, mainly driven by a lower average than this year.

And now let's take a look at our liquidity and leveraged position.

To 3.9 million at the end of June 2025 compared to December 2013.

Simone Conticelli: This increase is mainly due to a seasonal effect related to the net working capital needs in the second quarter. The growth depth increase between December 2024 and June 2025 was driven by $100 million drawn from the new credit line with CAF, Banco de Desarrollo de América Latina y el Caribe, and $42 million in new leasing liabilities, offset by $102 million debt amortization. The average maturity of our debt portfolio slightly declined to 5.9 ERP as of June 2025 compared to 6.2 ERP 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 costs. Regarding liquidity, we are in a comfortable position to support our capital needs for the upcoming month and hope with the next year's maturity.

It increases mainly due to a seasonal aspect related to the net working. Capital needs is the second quarter.

the growth that increased between December 2024 and June, 2025 was driven by 100 million dollars drawn

From the new credit line with the CAP Bank for the disability or the American Latina E.

And possibly 2 million dollars in new business liability.

Set by 100 trillion, death and multiplication.

The average margin of about that portfolio slightly declined to 5.99 years as of June 2012, compared to 6.2 years in December 2024. And the portion at 6 rates is 866% of the total that.

The average cost of us that reached 4.9 as of June 2025 in line with a effort to optimize the financial costs.

Regarding liquidity, we are in a comfortable position to support a capital needs for the upcoming month and hope with the next year maturity.

Simone Conticelli: And finally, as of June 2025, we have available committed reliance for $590 million and cash equivalents for $320 million. So, thank you all for your attention. And now, I will pass the floor to Gianluca for the closing remarks.

And finally, as of June 2025, we have available committed 3 lines for.

590 million and cash equivalents for 320 million.

So thank you all for your attention. And now, I will pass the floor for the closing of 3 months.

Simone Conticelli: Thank you, Simone. Pleasure to be here. As I take part in my first earnings call at CEO, I'd like to extend my thanks to our shareholders and the broader investment community for your continued support of Enel Chile. I stepped into this role committed to working with the Enel Chile 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.

For your continued support of energy.

A step into this role committed to working with the energy through an agile data driven approach Clarity in execution and deeply rooted in. Operational excellence.

This mindset will guide how we identify the sick opportunities, the signs 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.

Simone Conticelli: 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 a swift 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 the impacts on our portfolio, those related to transmission constraints and asset unavailability. We are acting with flexibility and precision, identifying key operational actions and deploying solutions to safeguard value and maintain system stability and rentability.

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 Tammy completion of all infrastructure projects is progressing as planet.

Strengthening our ability to respond effectively within a robust risk management framework.

This approach includes a well-defined risk. Prevention activities, improved organizational readiness.

Enhances our capacity to respond rapidly and supports a swift 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 the impact on our portfolio.

Those related to transmission, constraints, and asset unavailability.

We are acting with flexibility and precision, identifying key operational actions and deploying solutions to safeguard value and maintain system stability and rentability.

Simone Conticelli: At the same time, we continue to improve the foundation of our business model, which has consistently proven resilient 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 Isabela for a question and answer session.

At the same time, you continue to improve the foundations of our business models, which have consistently proven resilient in the face of external challenges.

This ongoing managerial action and the months of our adaptability reinforce our positioning and support the delivery of sustainable long-term value.

Now, let me hand it over to Isabella for the question and answer session.

Isabela Klemes: 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 Mayorca from MessiRise. The first question of Florencia is, Gianluca, 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, Gianluca?

Thank you, Jan Luka. Thank you, Simone. So, let's now move on to the Q&A session. We will be taking questions this time via chat to the webcast.

So, the Q&A session is now open.

So, I will start here, Januka and Simony, with the first question. We have received the first question, which comes from Florida. Mayor, from me tonight.

the first question of Friday, j a n u a

Gianluca Palumbo: 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 debt and the last year's climate event. Some changes in customer habits also added to the problem. To fix these, we have made payment plans easier for customers. We have also developed better tools to find debt. And we are working with 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.

Okay, yes.

Lots of in distribution increase. Once comparing 2024 versus 2025 1. Reason is, I already tested the prices starting in the mid 2024 which led to more energy test. 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 the regular regulatory Regulators to improve the rules and Regulatory models.

Chile.

He lays 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.

Isabela Klemes: Thank you, Gianluca. And then we have the second question regarding the gas.

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

We affect that the sale of gas suppose could be sustainable in the next few years, considering our ability.

However, profitability and volume of gas trading will vary, considering market conditions.

Isabela Klemes: 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'll 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 concerned. How do you expect hydro volumes to evolve in the second half? Do we expect size goes down? And if you are comfortable with the full-year guidance, both in the hydrology and also in the EBITDA numbers, if you are confirming.

Thank you very much Jan Luka. So now let's go.

Simone Conticelli: Okay. So, the first half was very, very seasonal. But, considering that we have, many plants with reservoir and the reservoir was at a higher clarity 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. And, but in this moment, it seems that the, the, the, the rain season has already come a little bit late. So, also considering that we are expecting the melting season and there are a lot of snow on the mountains, we are quite optimistic, about the, the, the, the hydro production for the, for the next month. But clear, we will go on, monitoring the, the situation. And so we, we can confirm, 10.7 terawatt-hours, that was, our target in the first year of the strategic plan.

So she has several questions that go one by one, Simone. So the first one is from Hydraulic. Okay. So she's asking that in the first half, hydro production is slightly above 50% of the full-year targets, which has raised concerns. How do you expect hydro volume to evolve in the second half? Do you expect it to go down? And if you are comfortable with the full-year guidance, both in the hydrology and also with the standout in the Amazon number, are you confirming?

Okay, so, uh, the first step was a very bright season. But continuing that, we have many plans with Reservoir, and there was a war at the highest level at the beginning of the year. We, uh, achieved a very high level of production.

July was a little bit, a surprise, was it started a little bit bright and uh, but in this moment it seems that the the the rain season is has already come and a bit late.

So uh also considering that we are expecting in the 19th and there are a lot of snow on the mountains. We

Are quite optimistic, uh, about the the the other production for the for the next month, but clear, we will go on monitoring the situation.

And so we can confirm 10.7 terawatt hours; that was our target in the first year of the strategic plan.

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

Okay, thank you. Good morning. So we are going to the the second question from Bri. Uh, it's about the death, a cost of electricity. Can you share with us your current average cost of that?

Simone Conticelli: We have a very good cost of debt coming from the investments that we made in the past in a more favorable condition. We started the year with 5%, but in this moment, the cost of debt is slightly decreased to 4.9%. That's also due to our good mix between long-term and short-term debt.

We have a very good cost of debt coming from the...

Independence that we made in the past.

Condition. We we start the year with the 5% but in this moment there is a cost of debt is slightly decreased to 4.9%. Also due to a good lease uh between long-term and short-term debt.

Isabela Klemes: Okay. Thank you, Simone. So let me see now. We have more questions coming from Francisco Pai from Santander. So the question of his is regarding the 2025 guidance set as well. So considering the worst and expected energy market conditions, so he's talking about the low hydrology and unavailable of generation plants, transmission risk issues, which led to higher spot market prices. Are you considering to adjust your full-year year-end guidance in terms of EBITDA net income and payout?

Thank you. Good morning. So let me see.

Uh, we have, uh, now a question coming from Francisco Fee, from Samsung.

Uh, so the question is regarding the 2025 guidance as well. Considering the worse-than-expected energy demand conditions, he is also talking about the low hydrology and the availability of generation plans, as well as issues with transmission.

Simone Conticelli: 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 bad events. And so also in the first part, that as you commented, there was a negative ask from the external pressure, low hydrology, higher price, problems 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 guidelines for the project.

Which led to higher Sports market prices. Are you considering to adjust your full year year year, end guidance, in, in terms of it done and income and pay out.

So uh thank you for the question. Uh, as We Know.

We are a very well balanced companies. So, uh, we have many, uh, possibility reactors to, to bad events. And so also, in the first part that as you commented was, you know,

a negative art from the, uh,

From the point of view of external pressure, with price problems related to the transmission line, we reacted and reached good results in line with our expectations. So, we are sure that we can continue on this trend. Therefore, we also confirm the guidelines for the...

Isabela Klemes: Okay. Thank you, Simone. So I'm checking here. Okay. The next one is coming from Ruby Alvarado from BC. Thank you, Ruby, for your question. So he gets 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, I suppose.

Asking about, do you expect any additional impairments in the future related to Salina, uh, project?

Uh, is the second 1.

Simone Conticelli: Yeah, okay. So let's talk about Salinas project. This is an important project, a power plant with 375 megawatts in the initial project. We built 205 megawatts in 2024. And then the condition in the market changed. So what happened is that we moved the destination of Araset to different projects, in particular to the construction of PMGD, so small power plant, solar power plant in the area. Considering that the market for this kind of project is reducing, finally, we changed the value of Araset to align the assets at the market level. And in this moment, the value of the asset after the last impairment is quite low, and we are not expecting any other impairment.

I think it's 1 by 1. Yes. Okay. So let's talk about starting now uh, project. This is an important project with uh, 37, 30, 375 megawatts, in the initial project. We built the first 2 105 megawatt in 2024 and then the condition in the market changes. So, uh, what happened that we, uh, move the destination of eras that 2 different projects in particular, to the construction of pmgd. So small power plant, solar power plant in the area. Considering that in in the market for this kind of project is using finally we change the the value of our access to aligning the the

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 investment.

Isabela Klemes: Okay. Thank you, Simone. So the second question is, could you give us more color on the reduction costs in the distribution segment? So he asks, 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?

Okay, thank you, uh, simony. So the second question is, could you give more caller on the reduction cost in the distribution segment? Uh, so yes, no, if sales in the distribution business were down, why do we see Consolidated cost is decreasing more than Consolidated 10 sales?

Did you reach some additional efficiencies in terms of cost this year?

Simone Conticelli: Sure. We keep on working on the distribution business. You know that this is for us a core business. And for sure, we are looking at the possibility of reducing the costs. For this reason, we launched some traditional processes and also some extraordinary activities to contain the costs. And this is the main reason for the cost reduction. This is in line with our policy, trying to increment and the value of this business.

Uh, so, uh,

We we are keep on working on, uh, distribution business.

Around a core business and, for sure, we are looking at the possibility of reducing the cost. For this reason, we launched some processes and also some story activity to contain the cost. And this is the main reason for the...

The option that this is in line with.

The unfolding.

You know, so I could implement the value of this business.

Isabela Klemes: Okay. 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 Enel Chile?

Okay, thank you. So the last one is, uh,

what is the reason behind the year-over-year increase in the financial expenses in the quarter for uh, an LG then

Simone Conticelli: The increase is related also to the risk of amortization. The reason is that in the last year, we have a large amount of projects under construction, and so we had the opportunity to capitalize on costs in the correct way in these projects. And considering that this project stopped producing energy, we issued a COD, in particular for the huge project of Lost Home. This year, we have a little bit changed the possibility to capitalize financial costs.

Uh, the the the increase is really uh, also increased or more organization. Uh, the reason is that in the last year, we had a large amount of projects under construction. And so we we had the opportunity to capitalize and cost in the coverage way in this projects and considering the the this project uh start producing energy we we we reached the co particular for the huge project of most calm this year, we have a little bit changes, the possibility to

capitalize Financial costs.

Isabela Klemes: Okay. Thank you, Simone. So the next one is coming from Felipe Torres from AFP Habitat. Thank you, Felipe. So the question is, thank you for the presentation. Question. All gas trading activities are read maybe were booked, or can we expect further impact of gas trading already done in the next quarter? Can you give us guidance regarding future gas trading activities in the current context of lower availability of Argentinian gas? Gianluca?

Okay, thank you. Uh, Simone. So the next one is coming from the delivery tour. Now, I have the Abita. Thank you, Philip. So the question is: Thank you for the presentation. In regards to trading activities for August, are they already booked, or can we expect the impact of that trading already done in the next quarter?

Gianluca Palumbo: Okay. Thank you. Thank you, Felipe, for the question. In the first quarter of 2025, we signed an agreement to sell two LNG cargoes 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, oh, 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, expected during one week in June due to the extreme weather conditions in Baja Moreto.

Can you give us guidance regarding future guests trading activities in the current context of lower availability of Argentina gas?

Okay, thank you. Thank you for the question in, in the first quarter of 2025, uh, we signed an agreement to sell, uh, to sell to LNG Cargoes for delivery in Europe.

We are always looking for opportunities to trade LG surpluses.

The margin of the first cargo was booked in the second quarter of 2025 and accounted for 23 million dollars.

The second cargo will be sold and the booked only in the fourth quarter of this year.

Buy gas margin.

Is between 80 to 90 million.

and,

Uh, and the C. Okay. Yes. The last is okay regarding Argentina and other gas. We would like to clarify that we have a firm contract, and our them have been successfully delivered.

Isabela Klemes: Okay. Thank you, Gianluca. So let me check here. Okay. We have the next one coming from Martin Arrocet Zambalan. And now, so from Rodrigo Mora from Moneda. Actually, both are quite the same, no? So they are asking questions about the bet. They announced that the best investment in the presentation. So I'm reading in the question. What is the difference between the new better investment plan and the previous one? How much do you expect to invest in the following two years? What are your expectations in terms of additional revenue from materials and services? This is from the first one that is from Martin. Then I'll read from Moneda as well.

Expect during 1 week, in June, due to the extreme weather conditions in vakama.

Here. Okay, we have the next question coming from Martin Arnet from Balance.

Uh, and now, so, uh, from Rodrigo Mora from Moneda. Actually, they are quite the same. No. So, they are asking questions about the bed. Now, they announced that, uh, best investments, uh, in the presentation. So, I'm reading in the question.

Uh, what is the difference between, uh, the new battery investment plan and the previous one? How much do you expect to invest in the following two years? What are your expectations in terms of addition or average growth here in servicing?

Gianluca Palumbo: Okay. Thank you, Martin. So the best investment is in the same Enel Chile presented in the Capital Market Day 25, 2027. And so we are not considering in our numbers yet ancillary system revenues.

Uh, this is from the first quarter, that is from March, and then I read some Monet as well.

Okay.

Isabela Klemes: 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 scheduled that this capacity will be ready. And could you give us more information about the new wind farm project announced during the strategic plans in 2025 and 2027? Thank you very much.

Thank you, Martin. Uh, so the the best investment is in the same energy represented in the Capital Market day 252027. And so, we are not considering in our numbers yet ancillary systems revenues.

Okay. Thank you. So, from what we got, thank you for your participation.

Let me say here, I have 1 question. Uh, could you give us more caller about the best programs, the 567 megawatt? Uh, 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 Wings Farm project announced in July this strategic plan 2025 2027. Thank you very much.

Gianluca Palumbo: Okay. The investment is around 400 million in three best projects, 453 megawatts in total over four hours, with the code in 2027. The wind farm projects announced during the strategic plan are still in the business plan, but with a further code that's then best projects.

Okay, the investment.

Is around $400 million in 3, best project.

For 4,053 megawatts in total over 4 hours.

With the code, in the 2027, the wind farm projects announced that during the Strategic plan are still in the business plan. But with a further code,

Isabela Klemes: Okay. Thank you, Gianluca. I'm going now to a new one from Florencia Mallorca from Mest Line. She's asking about Simone. So the debt, when you're expecting to address the 2027-2028 bonds of Enel Chile, the 1 billion bonds?

That then best projects.

Thank you januka. I'm going now to a new 1 from

asking about simony.

So, the deck, now, when you are expecting to address the 2027 to 2028 bonds.

Simone Conticelli: So thank you for the question. And this is really the higher maturity that we have in the medium term. But in this moment, it's a little bit early not to make plans about that. What we can say is that in general terms, we continuously evaluate liability management alternatives to optimize our financial costs. And so our analysis that already has been started includes many of the financial options like issuing new 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.

Uh, of an entity. There won't be any phone.

So, thank you for the question, and this is really known.

the higher maturity that we have in the

But in this moment it is edited early, you know, to make plans about that.

What we can say that the in general term we continuously evaluate liability management alternatives to optimize the the our financial cost. And so our analysis that already have been started include the many refinancing options like issuing

Bonds, or for example, securities, long-term loans, and so on. However, we may be more involved in this issue in the next month.

Isabela Klemes: Okay. Simone, we have another one for you coming from Liliana Yanzo UBS. She's asking about the investment. 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 or transmission? What about dividend share by debt? Do you have a program of share by debt in your company? Thank you.

Okay, uh uh simony. We have another 1 for for you, coming from Liana, Yano UVA.

Uh, he she's asking about the the Investments know. Uh, if we are seeing

I mean let me ask you another question. Uh, where do you see most attractive investment opportunities for a sub sector standpoint?

Renewables.

Simone Conticelli: So.

In your company. Thank you.

Isabela Klemes: Oh, no. So sorry, Simone. There is another one that I'll keep here. And if you can provide more color on the CAPEX plan of the company as well.

Simone Conticelli: Okay. So the first one is, can you help me about where our most possible investment?

So, and now so sorry, there is another one that I keep here. If you can provide a more detailed update on the CapEx plan of this company as well.

Okay. So the first 1 please, can you help me about where are

Isabela Klemes: Okay.

Simone Conticelli: Okay. I remember. And then I will ask for help for the next. For our investment, we try to optimize the investment in all the areas. I mean, in generation, but 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, 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 regulation model. And this investment is mainly devoted to increasing the resilience of the grid, also considering that these very disruptive climate events we see that will be occurring in the future more.

And then I will ask for the next.

For our investment.

My name is.

In generation for sure, at the center of our strategy, there are the projects for Big Dice.

Renewable Power Plants mainly in the north mainly solar power plant through best. But also, we are considering many other opportunity. For example also,

To be.

By also powering plants in other areas. So,

Of the country and talking about distribution, we are investing as much as we can. Even our cash flow is impacted by this.

by our current regulation model, uh, and this investment

are mainly, um,

Devoted to.

Increase the resilience of the greens. Also, considering that this ...

very disruptive, uh,

Simone Conticelli: So all our efforts to increase the grid. Second, we're talking about share by debt. This is something that is not in the amount. The management is the decision of the assembly of shareholders. Always is an opportunity for a company that has a very good and solid leverage. So this opportunity can be used, but in this moment, I don't have any cloud.

Climate events. It seems that we we be occur in in the future more or less. So, all our efforts to to increase

Second, I’d like to talk about sharing my background. This is something about which I am passionate.

in the end world, the management is a decision of the

Of.

Always with an opportunity for a company, as a very good.

Solid level manager. So, this opportunity can be used, but in this moment, I don't have any specific tool.

Isabela Klemes: Okay. Thank you, Simone. So the other question on Liliana is also about the CAPEX plan of the company, so confirming of the Capital Market Day the CAPEX plan.

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

Okay, thank you. Uh, simony. So the other question, only is enough about the capex plan of this of the company for confirming of the customer today, the customer. So we are confirming of the moment the the the current plan, as we recommend that you representation.

Yeah, it'll be delay in 2025 capex because we studied deeply the investment invest. We also expected the very good news from the regulator about the participation of this, on the the complementary Services Market. But we are going to, to start in the very next

Days. However, this will be delivered with some more delay compared to the plan, and we will talk about the further opportunity in our plan.

Isabela Klemes: Okay. Thank you, Simone. So the next question is coming from Fernando Gonzalez from BCG. So he welcomes you, Gianluca, from the company, and thank you for the presentation. He has two questions. The first one is the proposal nonconsidering services remuneration from energy storage for the CME 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 BES project, is because you expect the initial proposal to be improved before it is made public, considering all the comments that were sent over the coming weeks? The second one, have you gotten any feedback from the CME? The other question is, the new BES project will hybridize existing solar PVs in the north, or are you looking to develop a standalone asset? Thank you for your questions, Fernando, Gianluca.

Thank you, simony. So the next question is coming from Fernando, Salas from BG.

So he is welcome new Jungle from the from the company. And thank you for the presentation, he has 2 questions. The first 1 is the proposal or considering Services elimination.

From energy storage for this T is a positive step.

But it is far from ideal as it doesn't see a many incentives.

Your decision, as a company, to launch the new best projects is because you expect the mission proposal to be improved.

before it has made public consider all the comments that were, uh, sent

Over the committee week.

Uh, the second one: have you gotten any feedback from this team? The other question is:

The new best projects will hybridize existing solar PV systems in the North, or are you looking to develop?

Standalone access.

Gianluca Palumbo: First of all, thank you, Fernando. You're welcome. So about the first question, the new ancillary services proposal will allow capturing higher spot prices with the independency of the BES dispatched by coordinator. And about the second question, okay, we have so we have advanced battery storage.Large

Thank you for your question. First of all, thank you for now.

Your world welcome. Um, so the part of the first question, uh, the new artillery services proposal will allow capture of sport prices with independence of the best dispatch by the coordinator.

Gianluca Palumbo: project, totaling 450 megawatts, like I told before for a four-hour duration in northern Chile. And we expect to share important updates in the coming weeks. Our wind project remains on track and fully aligned with our current plans. And finally, the best project will upgrade existing PV plants in northern Chile. The new best capacity main goal is to improve our non-solar power production rather than providing ancillary services.

Okay, we have. Uh, so we have an Advantage battery storage project totaling 450 megawatts.

uh like 2 before for 4 Hour, duration in Northern Chile and we expect to share important updates in coming weeks,

Our win project remain on track and fully aligned with our current plan.

The and finally the best projects will appraise existing.

TV.

Plans in Northern of Chile, the new best capacity. Main goal is to improve our

No solar our production, rather than providing ancillary services.

Isabela Klemes: Okay. Thank you. Thank you, Gianluca. So we have the last question here. The last one is coming from Rodrigo Mora, Moneda Patria. Simone has a question here. So the first one is related to the extensive advisor retirement plan, included in this quarter for the company. Could you give us, to the investors more more information about the the space by subsidiaries, not by segments? And also, he asked a question about the availability of some renewable assets of the company. The he's he's saying that Guangzhou is generating less than one-third of one year ago, and the geothermal plant, Terra Pavilion, has no reduction of energy revenue. So can you give more information about the actions that the company is taking to recover this capacity of generation space?

Uh,

we have the last question here. The last 1 is coming from the big motor Moana.

Question here.

So, uh, the first one is related to the incentive by the retirement plan included in this work for the company. Could you give us uh 2 to 3 investors? No more, uh, more information about the... they pleased by, by, by Thursday, know by segment and...

Now so he asking question about the availability of some uh renewable assets of the company. The he's he's saying that when Sean is generating less than 1/3 of 1 year ago and the job termo. Uh plan 7 Pavilion has no reduction of any generator.

Gianluca Palumbo: So, I believe I can answer your question. First of all, let's start 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 here in Chile. 5 million 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, especially on cross-cold metal. during this first half, we can't finish the job in another 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 additional.

So, can you give more information about the actions that the company is taking to recover this capacity of generation case?

So uh, hybrid legal, thank you for your question.

First of all, let's talk about the reorganization of the company. It's a very important project that will improve our internal efficiency in the future, and this plan goes through all the group, yet it will impact Chile by $5 million.

Generation area more or less the same amount of distribution area. But we are also looking at the

Services area.

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

Month and its activity.

Like here on the call, during this first half, we count to finish the job in.

Other few weeks maybe in September, we should be ready.

And this is due to.

Gianluca Palumbo: The addition is covered the cost of the maintenance, but also partially the deliverable account. So it's very important. Then talking about Terra Pavilion, it's true that we are producing a little bit less. We are producing two out of three turbines, but the three turbines are currently functioning. The fact is that we have a little bit less of the fluid, and this is the natural evolution of the weld. But we have planned already an intervention with a specific machine to be transported in the tight to recover the full efficiency of the weld. And so, by the end of the year, we should be making this maintenance activity.

Some problems. But also I want to stress that this kind of official coverage by the the issue as we have additional cover, the cost of the maintenance but also partially the the loss for the loss production. So it's very important.

Then talking about several. Uh it's true that we are producing a little bit less. We are producing this 2 out of 3 1 but the 3 to 1 are currently functioning. The the the the fact is that we have a little bit less of who is this, and this is the Natural Evolution of the world, but we have planned already an intervention with a, a machine to be the, the reported

besides this to to recover the full efficiency of the wells and so

Isabela Klemes: Okay. Thank you, Simone. So now, it's our last question. so from Fernando Sales, BPG, on the distribution now, Gianluca. So has there been any progress on the change to execute investment in resilience in risk and be recognized in the asset base earlier?

By the end of the year, we we should be, uh, making this Mantra as activities. Thank you. Good morning. So now uh, it's our last question. Uh,

So from Fernando Valley BPG, uh, on the distribution now, Januka. Uh, so has there been any progress on the change to execute investment in resilience in Greek and be recognized that in the assets based earlier?

Gianluca Palumbo: Okay. Thank you for your question. no. Progress so far. But SNL 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 point.

Okay, thank you for your question. Uh, no progress so far.

Mint in the network will be required to address. The increasingly frequent effects of climate change.

And so, the electrification expected and the growing penetration of renewables in the system. So this is our point.

Isabela Klemes: Okay. Thank you very much, Gianluca. Thank you all connected. So if there are 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.

Okay, thank you very much. You all look connected. If there are any other questions or any other information you may need, our Investor Relations team will be available. Thank you very much, and have a good week.

Gianluca Palumbo: Thank you for your participation in today's conference. This concludes the program. You may now disconnect. Everyone, have a great day. Good morning, ladies and gentlemen, and welcome to the Enel 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 Security 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 Enel Chile's press release reporting its first half and second quarter 2025 results.

Thank you for your participation. In today's conference, this is for the program, you may now disconnect everyone have a great day.

Hey.

Good morning, ladies and gentlemen, and welcome to the Enel Chile 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.

Gianluca Palumbo: The presentation accompanying this conference call and Enel Chile's annual report on Form 20F included under risk, sorry, included under risk factors. You may access our first half and second quarter 2025 results press release and presentation on our website, www.enel.cil, and our 20F on the 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. Enel Chile 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. Isabela Klemes, head of investor relations of Enel Chile. Please proceed.

ACT results May differ materially from those anticipated in the phone looking statement, as a result of various factors, these factors are described in nose. Press release reporting its first half and second quarter 2025 results, the presentation.

I mean, this conference call and the report on Form 20-F included under...

Wrist. Sorry. Included under risk factors, you may access our first half and second quarter 2025 results, press release, and presentation on our website.

And our 20 F on a sec's website. Www.sec.gov readers are cautioned to not place under Reliance. On those before we looking statements which speak only as of their dates undertakes. No, obligation to update these former looking statements or to disclose any development as a result of which these 4 looking same as become inaccurate, except as required. By law, I would like to turn the presentation over to Mrs. Isabella, Clemens head on investor relations of no Chile, please proceed.

Simone Conticelli: Buenos días. Good morning and welcome to Enel Chile 2025 second quarter's first half results presentation. We greatly appreciate you taking time to join us today. My name is Isabela Klemes. 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 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 the Head of Global Network Development for all distribution business lines within Enel and General Manager of SDSU, Enel Distribution Company Argentina.

House results, presentation.

We created, and I appreciate you taking the time to join us today. My name is Adela, and I'm the Head of Investor Relations.

question, the role of Chief Executive Officer of an El chili on July 1st,

is an electrical engineer, a graduate of the University of Naples Federico II, with nearly three decades of experience within a group.

Simone Conticelli: Most recently, Gianluca served as Head of Global Construction Operation and Maintenance for the entire distribution and business across the Enel Group. Our presentation and related financial information are available on our website, www.enel.cil, 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 mode. Gianluca will kick off the presentation by covering key highlights of the period and the country energy context. He will also delve into our portfolio manager 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.

Throughout his career, he has held several strategic leadership position, including head of Global Network development for all distribution business lines with CNL and general manager of the 2 and their Distribution Company, Argentina. Most recently, John Luka, served as head of Global Construction operation and maintenance for the entire distribution of business across the group.

Our presentation and related financial information are available on our website www.lo in the investor section, as well as through our investor app. In addition, our playback of the call will soon be available.

At the end of the presentation, there will be an opportunity to ask questions via webcast chats.

Through the ask-a-question feature, participants are connected in listening mode. Januka will kick off the presentation. Bye for now. He will highlight the year and the country’s energy content. He will also delve into our portfolio manager actions and provide updates on the regulatory content.

Following that, Simone Walker will provide an overview of our business, economic, and financial performance.

Thank you all for your attention. And now, let me hand over to januka.

Gianluca Palumbo: Thank you, Isabela. 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 the 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.

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 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. Hydro generation remains consistent with 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 the 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 offsetting our spot market purchases.

This activity continues to be a key tool in navigating current market dynamics and is expected to remain at the relevant level throughout the year.

Gianluca Palumbo: Now, moving on to our distribution segment. At the same time, we have made solid progress with our resilience and 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. For instance, once applied, we are using generation units to support service restoration during network recovery.

Now, moving on to our distribution segments.

At the same time, we have made solid progress with our resilient 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 service 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 the local municipality and relevant regulatory entities.

This initiative aimed to prevent service disruption and further secure the stability of our infrastructure.

Gianluca Palumbo: 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 2429 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 tariff decree for the second half of 2025 was published in July. This update adjusts the energy component of regulated tariffs. As I will explain later, it enables us to begin recovering a larger portion of PEC 1 and provides greater visibility over cash flow for our generation business.

Additionally, we have introduced new procedures for managing grade failures more efficiently. For instance, we are using generation units to support service restoration during network recovery.

This announcements are part of our broader strategy to boost system resilient 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. 24/28 consultant report, and the publication of a new regulation on best ancillary services.

I will share more details later.

This update adjusts the energy component of regulated tariffs.

As I will explain later it enable us to begin recovering, larger portion of back 1 and provides greater visibility over cash flow for Our Generation business.

Gianluca Palumbo: 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 dollars 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 allowed to navigate potential headwinds posed by evolving climate scenarios, 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 regulations and deeply analyzing several market scenarios for Chile and observing the cost of evolution of the past, we are ready to formally launch construction of our best investments.

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 EPA higher than the same period last year.

This prompt performance was further supported by a positive SFO driven by $261 million received from the stabilization energy mechanism factoring.

This inflow significantly improved our cash flow position.

As a result, we have maintained a solid liquidity position that allows us to navigate potential headwinds, also by evolving our climate scenario, while advancing our investment program across both our generation and distribution businesses.

Now, turn it to generation investments.

After gaining confidence in proposed ancillary Services regulation and deeply analyzing several Market scenarios for chile and observing the cost of revolution of the past.

Gianluca Palumbo: 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 unavailability of a transmission line connecting the northern and central region of the country, mainly in April and June, which led to significant system decoupling.

We are ready to formally launch construction of our best investments.

This project.

We'll be deployed in northern Chile, adding around 0.5 gigabytes 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 regulating and free market segments.

Now, let's move to slide 4 to talk about the country's market situation.

The national electricity system has been affected by several factors, including.

Poor ethological conditions, both scheduled and unscheduled, maintain their impact across various thermal power plants and affect the temporary availability of the transmission line connecting the northern and central regions of the country, mainly in April and June, which led to significant system decoupling.

Gianluca Palumbo: All these factors combined led to an increase in spot price in the 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 hydrogen ratio 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 the 2025, we expect hydrogeneration to reach around 11 terawatt-hour.

All these factors combined led to an increase in the spot price in the central and southern zones 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 astrology front, cumulative rainfall has been lower than in the same periods of 2024.

Nevertheless, the hydrogen generation during this period was close to last year's levels.

Therefore we we are maintaining our hydrology guidance for the year in line with the average observed over the past 10 years.

For 2025, we expect hydrogen generation to reach around 11 terawatts.

Gianluca Palumbo: 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 the 2024 stored in our dams. Thanks to our robust and diversified gas 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 sources and battery energy storage systems.

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 the shell Adventure dinner gas, supply, the full availability of our efficient thermal capacity and strategic water reset from favorable rainfall into in the 2024 storage. In our dense,

Thanks to our robust and diversified position, we were able to capitalize on favorable trading opportunities across both local and international markets during the period.

This demonstrates the effective complimentary within our portfolio.

Now, moving on to slide 5.

Let's review our generation portfolio and energy balance, taking into account the system, constraints, and adjusted outline.

Gianluca Palumbo: Net electricity generation decreased 5% compared to production as of June 2024. This decline was driven by lower hydro dispatch during the first quarter of 2025, reduced renewable generation, increased the curtailment levels caused by transmission line limitations already mentioned. However, this was partially 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 first half, our energy sales almost reached 15.1 terawatt-hour, 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 terawatt-hour, lower than the second quarter of 2024, mainly due to reduced sales to regulated customers and free clients.

Certified portfolio, which includes a total net installed capacity of 8.9 gigawatts, with 78% coming from renewable energy sources 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 reduces renewable generation.

Increase the containment levels caused by the transmission line. Limitations have already been mentioned.

However, this was partly offset by higher contribution from from our efficient thermal power plants.

During the second quarter of 2025, net generation declined to 5.9 terawatt hours, mainly due to the reduced renewable generation already mentioned.

In the first half, our energy sales almost reached 15.1 TeraTower, mainly due to lower seas, to regulate the customers following the expiration of regulated contracts.

During the second quarter of 2025, physical energy totaled 7.4 terawatt-hours lower than the second quarter of 2024, mainly due to reduced sales to regulated customers and free clients.

Gianluca Palumbo: 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 slide seven. 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 VAD 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.

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 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 consultants' final report on the 2428 bad is expected to be delivered and published in the coming weeks.

We estimate the regulator.

We will release the preliminary technical report for this new cycle in the second half of 2025.

Gianluca Palumbo: In relation to the 2024 VAD 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 towards improved regulatory. Now, on tariffs in July 2025, the decree for the second half of 2025 PMP 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 the right-hand side of the slide to review updates on important changes in the regulatory framework currently under discussion.

In relation to the 2024 bad process, we will remain monitoring the resolution from the Superintendency of Electricity and Fuels, which will establish the timeline for defining that to stand. The upstanding depth in favor of the Distribution Company marks an important step toward improved regulation.

Now, on targets in July 2025, the degree 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 6 months.

Related to the pack across, as of June 2025, we had an accounts receivable related to the pack.

Of around 164 million.

These figures already include the factory executed in April for $261 million.

Gianluca Palumbo: 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 distribution companies 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 the so-called Bolsa Prime initiative are still under discussion. Regarding the remuneration of ancillary services for battery energy storage systems, we expect regulatory updates in the third quarter of 2025. The proposal presented by the National Energy Commission seeks to encourage the participation of the best in the ancillary service market by recognizing the costs associated with their delivery, given the systemic benefit that their inclusion would entail.

Let's now move to the 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 is still under discussion.

So far, the measures approved to date are additional net VAT related to the tariffs increase.

Increase 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.

Regarding the remuneration of ancillary services for battery energy storage systems, we expect a regulatory update in the third quarter of 2025.

The proposal presented by the National Energy Commission seeks to encourage the participation of the best in the ancillary service market by recognizing the costs associated with their delivery, given the systemic benefits that their inclusion would entail.

Gianluca Palumbo: 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.

To this end, the calculation methodology for the opportunity cost is proposed to mitigate the risk of forgoing participation in energy arbitrage.

Next, our CSO, Sim, will present a review of our financial and economic performance.

Simone Conticelli: Thank you, Gianluca, and good morning, everyone. I will start by reviewing the highlights of our performance over the season. Before we start commenting the first half results, let me remind that as of January the 1st, 2025, Enel Chile changed its functional currency from Chilean pesos to 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 period. And now, let's take a look at a brief overview of our financial performance. As shown on the slide, in the first half of 2025, EBITDA reached $659 million, representing a 10% improvement compared to the last year's figure. The improvement is mainly driven by strong focus performance in generation and improved gas trading activities, which more than offset the negative impact of regulated EPA's expirations and transmission line constraints.

Thank you very much. Juga. Good morning, everyone.

I will start by reviewing the highlights of our performance over the video.

Before we start commenting on the first part, let me remind you that as of January 1, 2025, energy will change its functional currency from pesos to US dollars.

For comparative purposes, including presentation, the first half and the second quarter 2024 figures are converted using the average exchange rate of the videos.

And now, let's take a look at that: a brief overview of our financial performance.

As shown on the slide in the first half of 2025, it is projected that we will reach 659 million, representing a 10% improvement compared to last year's figure.

The improvement is mainly driven by strong, successful performance in generation and improved gas trading activities, which more than offset the negative impact of regulated PTA, expirations, and transmission line costs.

Simone Conticelli: The June transmission line constraints particularly impacted the second quarter EBITDA, that slightly decreased by $10 million compared to the second quarter of 2024. Moving 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 VNA, while in the second quarter, net income amounted to $71 million. The first half FFO showed a significant improvement compared to the last year, reaching $403 million, 7.8 times the previous year's figure. 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 PEC. We will go into more details later in the presentation.

The June transmission line constraint particularly impacted Q2, with the earnings profile slightly decreasing by $10 million compared to Q2 of 2020.

Going to net income, the first half of net income amounted to $246 million, a decrease of 8% compared to the previous year, mainly due to the higher DNA. Meanwhile, in the second quarter, net income amounted to $71 million.

The first update shows a significant improvement compared to last year, reaching $43 million.

7.8 times the previous year's figure.

And in the second quarter, FF4 reached $295 million. That means $357 million higher than the results of the same period in 2024.

The increase is driven mainly by the previously mentioned improvement in pizza and the recovery of pounds associated with.

Simone Conticelli: And so now, let's move to the next slide to review the progress made on CAPEX. Our total CAPEX reached $157 million in the third 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 grid investments. 31%, or $48 million, supported thermal projects. 29%, or $45 million, was invested in renewable and storage. The grid focus, as previously explained by Gianluca, remains on the resilience program, reinforcing the infrastructure to reduce vulnerability to climate-driven destruction. The priority for the thermal segment is the maintenance and performance enhancements of the power plant fleet. In the renewable segment, we have centered our efforts on finalizing the MGD program, enhancing hydro-fertility performance, and maintaining fleet availability.

We'll go into more details later in the presentation. And now, let's move to the next slide to review the progress made on campus.

157 million, mostly censored on Greeks and power, plant streets 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 Greek focus has previously explained why it remains on the resident program, reinforcing infrastructure to reduce vulnerability to climate-driven destruction.

The priority for the 7-month segment is the maintenance and performance enhancement of the power plant rate.

Recommended websites that outline finalized NetM GD's program. I'm considering focusing on both performance and maintenance.

Simone Conticelli: 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, Intero, and San Isidro CCGT, and grids correcting maintenance and digitalization. Development CAPEX was $38 million, primarily driven by the complexion of the 2024 investment program for PMGD and investments for grid reliability enhancements 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 road improvements. And now, let's move to the next slide, which presents a detailed view of our second quarter EBIT. 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 through the main reasons for the performance difference.

Passing to break down by nature, the management capex totaled $89 million, accounting for 57% of the total coverage.

mostly used for the maintenance of

months and digitalization.

Development.

Was $38 million primarily driven by the complexion of the 2024 investment program for CMDs?

And the investment for GRE reliability, announcement, and telecontrol deployment.

The 2025 development capex related to battery projects has been partially declared as being moved to 2026.

Customer capex portal at 30 million dollar mostly, for to set on low and medium balls and connection projects. And initiatives to support growth companies.

And now, let's move to the next slide, which presents an edited view of our second quarter.

In the second quarter of 2025, we reached $293 million, representing a decrease of $10 million compared to the same period of 2024. Can you explain the reasons for this decrease?

Simone Conticelli: Starting with generation business, we recorded a decrease of $106 million in EPA sales, primarily due to the elimination of some high-price regulated contracts and impacted on volume and average price of the regulated portfolio, partially offset by the negative impact of exchange rate cases recorded in 2023. Going to the sourcing, we recorded a positive effect of $92 million, despite the negative impact of $23 million due to the transmission line constraints and interruptions, particularly in June. The good performance is primarily explained by lower cost in the spot market, mainly due to the lower energy volume purchase 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 terabyte during the second quarter of 2025.

Let's go to the main reason for the performance differences.

Starting with generation business for the quarter, there was a decrease of $10,060 million in PPA sales, primarily due to the termination of some high-price regulated contracts that impacted the volume and average price of the regulated portfolio.

Partially offset by the negative impact of the exchange rate. Just recorded in 2024.

Going to the sourcing, we have the positive effects of $92 million, despite the negative impact of $23 million due to the transmission line for stream and interruption, particularly insured.

The good performance is primarily explained by lower costs in the sport market, mainly due to the lower energy volume or shape.

and lower third parties for

Regarding gas optimization activities, we achieved a positive contribution of $25 million, thanks to increased gas, bringing volumes for a total of 6.

Point or therapeutic, you during the second quarter of 2002.

Simone Conticelli: Regarding our grid business, we recorded a positive impact of $7 million, mainly driven by a provision reflecting the higher tariffs expected for the 2024-2028 regulatory recognition period, partially offset by a higher cost in the quarter, mainly due to increased maintenance activities aimed at strengthening the grid. We also recorded a negative impact of $14 million, mainly due to generation costs related to the new development capacity that is starting to operate 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 reorganization aimed 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.

Regarding our business, we reported a positive impact of $7 million, mainly driven by a provision reflecting the higher status expected for the 2024 and 2028 regulatory remission.

Partially offset by a higher increase for that, mainly due to increased maintenance activity and strengthening debris.

We also recorded a negative impact from fulfilling the dollar, mainly the regeneration costs related to the new development capacity that starts the new operating after June 2024 and maintenance activities.

Finally, in the second quarter of 2025, we recorded a cost of $1 million, mainly for the incentivized earlier retirement plan.

To support the company, reorganization is aimed at improving internal performance.

And now, let's move on to the next slide to review the main impacts on EBITDA during the first half of 2025.

Simone Conticelli: In the first half, our EBITDA 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 $165 million in fleet sales, mainly due to the elimination of high-price regulated contracts, partially offset by the negative impact of exchange rate cases recorded in 2024 and the positive price effect due to the indexation of free market contracts. Regarding sourcing, we recorded a positive benefit of $189 million, despite the $34 million negative impact due to the transmission line restriction following the February blackout and the additional second quarter issues. The result was obtained thanks to lower spot market and third-party energy purchase costs, energy settlement for previous periods, the user submission costs, and finally, lower production costs thanks to the efficiency of our thermal power plants.

In the first half, RB was $659 million, representing an improvement of $62 billion compared to the same period of 2024.

Starting with the generation business, we recorded a decrease of $155 million due to the determination of high prices regulated contracts.

Partially offset by the negative impact of exchange rates, Pages records that in 2024.

Due to the indexation of three market contracts.

Regarding sourcing, we recorded a positive benefit of $189 million. Despite...

This $34 million impact is due to the transmission line restriction following the February blackout and the additional...

second quarter issues.

The result was obtained thanks to lower spot market prices and third-party energy purchase costs.

Energy settlement for previous periods.

The user transmission costs and, finally, lower production costs, thanks to the efficiency of our thermal power plants.

Simone Conticelli: In the first half of 2025, gas optimization activities contributed for $22 million, also thanks to an increase of 5.9 terabyte in trading volumes versus the same period of 2024. On the grid business, we recorded a positive impact of $34 million, primarily driven by two factors. The provision reflecting the higher tariff expected for 2024-2028 regulatory elimination period and the favorable effect of tariff indexation. As outlined in the quarterly analysis, in the first half, we recorded an increase of generation costs due to the new development capacity and the maintenance. Finally, as previously explained, we have a non-recurring 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.

In the first half of 2025, our optimization activities contributed $2.2 million. Also, thanks to the increase of 5.9% in trading volumes compared to the same period of 2024, we are optimistic about our performance.

On the Greek business, we recovered a positive.

Impact of $34 million, primarily driven by two parts.

The provision reflects a higher status.

2020.

And the far more powerful aspects of Paris, indexation.

As outlined in the quarterly analysis, in the first half, we recorded an increase in generation costs due to the new level of capacity and demand.

Finally, as previously explained, we have no effect from the $1 billion related to the company's reorganization.

And now, let's move on to the next slide, where we will review the net income revolution.

Simone Conticelli: Our first half 2025 net income reached $246 million, a decrease of 8% compared to the last year's figures, mainly explained by reduced EBITDA by $60 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 PMGD solar project initially planned for development in this area. And finally, the increase of grid beddeck provisions amounting to $60 million, mainly driven by higher average invoice amounts due to the rise of tariffs. Regarding financial results, we recorded a negative variation of $28 million, mainly explained by the lower capitalized expenses on renewable projects, the 2024 interest on tax receivables, partially offset by lower financial expenses and positive foreign exchange recurrences.

Our first quarter of 2025, net income reached $20,466 million, representing an increase of 3% to 8% compared to last year's figure, mainly explained by the $62 million offset by.

Higher representation and motivation impairment, and better expenses for $66 million. Mainly due to...

The commission of new, renewable capacity amounting to 20 million.

The $29 million impairment followed up with the decision not to proceed with the new PMGD solar project, which was initially planned for development in this area.

And finally, the increase of grids that provisions amounted to $16 million, mainly driven by higher average.

And M.

You to the right of price.

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.

Simone Conticelli: We also recorded a $3 million increase in the income tax bill, mostly due to the improved results. Opposing on the quarter, net income decreased by $39 million, mainly due to a $10 million decline in EBITDA, $41 million increase in depreciation, amortization, and beddeck, primarily due to the operation of a new renewable capacity and the commented impairment. And finally, a $12 million decrease in income taxes, mainly due to the lower results recorded in the second quarter of 2025 versus the second quarter of 2024. 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 FFs compared to the same period in 2024. Our FFO reached $403 million, representing an improvement of $361 million compared to the first half of 2024. This is due to the following factors.

Partially offset by lower financial expenses and positive foreign exchange differences.

We also recorded a $3 million increase in income taxes, mostly due to the improvement in results.

Focusing on the net income, it decreased by $39 million, mainly due to a $10 million decline in pizza, a $41 million increase in the presentation and multiplication, and ultimately, this was due to the operation of the new renew for capacity.

Impairment.

And finally, $12 million in income taxes, mainly due to the lower results reported in the second quarter of 2012 versus the second quarter of 2024.

And now, uh, let's move on to the FSO analysis on the next slide.

Let's analyze the effects of composition for the first half of 2025 and then the main effects compared to the same period in 2024.

Simone Conticelli: First, EBITDA amounted to $659 million, with a positive variation of $62 million as previously exposed. Second, the $269 million recovery of tax receivable in the first half of 2025, mainly due to factoring executive in April 2025 related to PEC 3. It's worth mentioning that we observe a positive FFO by one quarter, $416 million versus the first half of 2024, thanks to the $1 million accumulation of tax receivable started in October 2024. Third, the working capital increased by $256 million, mainly due to the developing CAPEX payment and seasonality on energy payments. The increase was higher by $102 million versus previous years, mainly due to the negative effect of energy payment scheduling and the increase in energy distribution receivable due to the increase in the tariffs. These effects were partially offset by lower CAPEX payment related to the new renewable capacity.

This is due to the following factor.

First, it amounted to $669 million, with a positive variation of $60 billion and 2. Usually, exponent.

Second, $269 million recovery of tax receivable in the first half of 2025.

Mainly due to factoring executed in relation to Effect 3 for 2025.

It's worth mentioning that we observe a positive trend and an issue with acts of violence. 46,164. Thanks to the end of the accumulation of papacy support that started in October 2024.

So, the working capital increased by $256 million, mainly due to the development capex payment and seasonality on energy payments.

The increase was higher by 116 million versus. Do you see there, mainly due to the negative effects of energy, payment scheduling? And the increase in energy, distribution receivables, due to the increase in the salary?

The.

Simone Conticelli: Four, the income taxes impacted on FFO by $187 million, mainly due to tax payment in the generation business. Income taxes paid in the first half of 2025 were higher by $60 million compared to the first half of 2024. This difference is mainly due to the increased tax payment in the generation business, driven by both higher results and higher monthly payments. And finally, financial expenses amounting to $82 million, mostly due to the debt-related costs. The debt-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 our liquidity and leverage position. Our growth rate increased slightly by $40 million to $3.9 million at the end of June 2025 compared to the December 2024.

Income taxes were impacted by $187 million, mainly due to tax payments in the generation business.

Income tax paid in the first half of 2025 was higher by $16 million compared to the first half of 2024. This difference is mainly due to these tax payments generated by business growth, driven by both higher results and increased monthly payments.

And finally, financial expenses amounted to $82 million, mostly due to the cost.

This represents a reduction of $30 million compared to the first half of 2024, mainly driven by a lower average than this year.

And now let's take a look at our liquidity and leveraged position.

To $3.9 billion at the end of June 2025 compared to December 2013.

Simone Conticelli: This increase is mainly due to seasonal effects related to the net working capital needs in the second quarter. The growth that increased between December 2024 and June 2025 was driven by $100 million drawn from the new credit line with CAF, Bank for the Desarrollo de América Latina y el País, and $42 million in new leasing liabilities, offset by $102 million debt amortization. The average maturity of our debt portfolio slightly declined to 5.9 EFs as of June 2025 compared to 6.2 EFs 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 costs. Regarding liquidity, we are in a comfortable position to support our capital needs for the upcoming months and hope with the next year's maturity.

It increases mainly due to a seasonal aspect related to the net working capital needs in the second quarter.

The growth that increased between December 2014 and June 2025 was driven by $100 million drawn.

From the new pendulum, with the cap bank for the disability, or the America Latina, years ago.

And $42 million in this liability.

Set by $100 million that a month.

The average margin of about that portfolio slightly declined to 5.9 years as of June 2012, compared to 6.2 years in December 2014.

And the portion at fixed rate is 866% of the total debt.

The average cost of about that Richard 4.9, as of June 2025, is in line with our efforts to optimize financial costs.

Simone Conticelli: And finally, as of June 2025, we have available committed credit lines for $590 million and cash equivalents for $320 million. So thank you all for your attention. And now, I will pass the floor to Gianluca Montecruzi.

Regarding liquidity, we are in a comfortable position to support our capital needs for the upcoming month and hope with the next year's maturity.

And finally, as of June 2025, we have available committed 3 lines for.

500 and 590 million in cash and cash equivalents for $320 million.

So, thank you all for your attention, and now I will pass the floor to Chelsea for the closing remarks.

Gianluca Palumbo: 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 Enel Chile. I stepped into this role committed to working with the Enel Chile 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.

Thank you, Simon. I just

That's my community for your continued support of energy.

A step into this role committed to working with the energy team through an agile, data-driven approach, clarity in execution, and deeply rooted in operational excellence.

This mindset will guide how we identify the sick opportunities, the signs, 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 for all our stakeholders.

Now, I would like to share the following closing remarks.

Gianluca Palumbo: We remain fully committed to our winter plan in the distribution business, with a clear focus on ensuring services continuity and availability, 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 well-defined risk prevention activities, improves organizational readiness, enhances our capacity to respond rapidly, and supports a swift 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, identifying key operational actions, and deploying solutions to safeguard value and maintain system stability and rentability.

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, and improves organizational readiness.

Enhances our capacity to respond rapidly and supports a swift 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 the impact on our portfolio.

Those related to transmission, constraints, and asset unavailability.

We are acting with flexibility and precision, identifying key operational actions and applying solutions to safeguard value and maintain system stability and rentability.

Gianluca Palumbo: At the same time, we continue to improve the foundation of our business model, which has consistently proven resilient 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 Isabela for a question and answer session.

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.

This ongoing managerial action and our adaptability reinforce our positioning and support the delivery of sustainable long-term value.

Now, let me hand it over to Isabella for the question-and-answer session.

Isabela Klemes: 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 webcam. 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 Mayorca from Meteorite. The first question of Florencia is, Gianluca, 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, Gianluca?

Thank you, John Luka. Thank you, Simone. So, let's now move on to the Q&A session. We will be taking questions this time via chat to the webcast.

So the Q&A session is now open. I will start here. Januka and Simony with the first question. We have received the first question coming from Florida, Mayor from Messi.

The first question is for Isabela Klemes regarding the main vision behind the energy losses in the distribution business. The second question pertains to the higher gas sales in the generation business and asks how sustainable they are.

Gianluca Palumbo: Yes. Losses in distribution increased once comparing 2024 versus 2025. One reason is higher electricity prices starting in the mid-2024s, which led to more energy debt and the last year's climate event. Some changes in customer habits also added to the problem. To fix these, we have made payment plans easier for customers. We have also adapted better tools to find debt. 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.

Okay. Okay. Yes.

Not taking this demotion, increase when comparing 2024 versus 2025. The reason is higher electricity prices, starting in mid-2024, which led to more energy dust. Additionally, last year's climate events contributed to this situation.

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 the regular regulatory regulators to improve the rules and regulatory models.

Chile.

We still have 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.

Isabela Klemes: Thank you, Gianluca. And then we have the second question regarding the debt.

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

Thank you, General. And then we have the second question regarding the guests. Yes. Okay. Okay.

Dollars for this year, we expect that the sale of gas supplies could be sustainable in the next few years, considering our ability.

Isabela Klemes: 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'll go one by one, Simone. So the first one is from Hydraulics. Okay. So she's asking that in the first half, hydro production is slightly above 50% of the few full-year targets, which gets confirmed. How do you expect hydro volumes to evolve in the second half? Please, do you expect it to slow down? And if you are comfortable with the full-year guidance, both in the hydrology and also in the EBITDA numbers, if you are confirming.

However, profitability and the volume of gas trading will vary, considering market conditions.

Okay, thank you.

Question coming from Breaty Janola, from Major Banca.

Simone Conticelli: Okay. So the first half was a very high seasonal. 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 a little bit late. So also considering that we are expecting the melting season and there are a lot of snow on the mountains, we are quite optimistic about the hydro production for the next month. But clear, we will go on monitoring the situation. And so we can confirm 10.7 terawatt-hour that was our target in the first year of the recent quarter.

So she has several questions that go on by 1 Simon, so the first 1 is from hydraulic, okay. So she's asking that in the first half, Hydro production is slightly above 50% of the few full year targets which have concerns. How do you expect Hydro volume to evolve in second half? Do we do expect a slow down, and if you are comfortable with the full year guidance, both in the hydrology and also in the we send out in the Amazon number, if you are confirming,

Okay.

So, uh, the first half was a very bright season. But continuing that, we have many plans with Reservoir, and there was a war at a higher level at the beginning of the year. We, uh, achieved a very high level of production.

July was a little bit of a surprise. Was it started a little bit bright?

And, uh, but in this moment, it seems that the rain season has already come. It's a bit late.

so, uh, also considering that we are expecting in the

Quite optimistic, uh, about the hydro production for the next month, but clear, we will go on monitoring.

the situation.

Isabela Klemes: Okay. 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?

And so we we can confirm 10.7 terawatt hour that was our Target in the first year of the Strategic plan.

Okay, thank you. Good morning. So we are going to the second question from Bei. It's about the cost of electricity. Can you share with us your current average cost of that?

Simone Conticelli: We have a very good cost of debt coming from the investments that we made in the past in the most favorable conditions. We started the year with 5%, but in this moment, the cost of debt is slightly decreased to 4.9%, also due to a good mix between long-term and short-term debt.

We have a very good cost of depth coming from, uh, the...

Independence that we we made in the past.

Condition: We started the year with 5%, but at this moment, it has slightly decreased to 4.9%. This change is due to a good mix between long-term and short-term.

Isabela Klemes: Okay. Thank you, Simone. So let me see now. We have more questions coming from Francisco Pai from Santander. So the question of him is regarding the 2025 guidance set as well. So considering the worst and expected energy market conditions, so he's talking about the low hydrology and unavailable of generation plans, transmission issues, which led to higher spot market prices. Are you considering to adjust your full-year year-end guidance in terms of EBITDA and income and payout?

Thank you. Good morning. So, let me see now.

Uh, we have uh, now question coming from Francisco PI from Samsung there.

Simone Conticelli: So thank you for the question, Francisco. As you know, we are a very well-balanced company, so we have many possibilities to react also to bad events. And so also in the first half, as you commented, there was a negative outcome from the external pressure to hydrology, higher price, and probably 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 guideline for.

Uh so the question of his is regarding the 2025 guidance as well. So considering the worse than expected. Any demand to the condition? Also, he's talking about the low hydrology and an available of generation plans, transmission with issues which led to higher spot market prices. Are you considered there is 2 are just your full year, year year, end guidance in in terms of it income and pay out.

So, uh, thank you for the question. As we know.

We are a very well-balanced company. So, uh, we have many, uh, possibility reactors to...

Bad events. And so also, in the first part that, as you commented, there was, you know,

a negative outcome from the, uh,

From the control group, external pressure with price problems with the transmission line and everything we reacted to reached good results in line with our expectations. And so we are sure that we can continue on this trend. Thus, we also confirm the guidelines for the...

Isabela Klemes: Okay. Thank you, Simone. So I'm checking here. Okay. The next one is coming from Ruby Alvarado from BC. Thank you, Ruby, for your question. So he gets 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.In

Gianluca Palumbo: a project. It's the second one.

Uh, so we asking about, do you expect any additional impairment in the future related to Salina, uh, project?

Uh, is the second 1.