Enel Chile SA Sponsored ADR Stock

Good morning, ladies and gentlemen, and welcome to Enel Chile First Quarter 2026 Results Conference Call. My name is Carmen, and I'll be your operator for today. [Operator Instructions]

During this conference call, we may make statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include Enel Chile S.A. current expectations, intentions, plans, beliefs, and projections. Forward-looking statements are based on management's current assumptions and expectations, do not guarantee future performance, and involve risk and uncertainties. Actual results may differ materially from those anticipated in the forward-looking statements as a result of various factors. These factors are described in the Enel Chile's press release on its first quarter 2026 results. In the presentation accompanying this conference call, Enel Chile's annual report on Form 20-F on the risk factors. You may access our first quarter 2026 results press release and presentation on our website, www.enel.cl, and our 20-F on the SEC's website, www.sec.gov.

Readers are cautioned not to place undue reliance on these 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 Ms. Isabela Klemes, Head of Investor Relations of Enel Chile. Please proceed.

[Foreign language] Good morning, and welcome to Enel Chile's 2026 first quarter results presentation. We greatly appreciate you taking the time to join us today. My name is Isabela Klemes. I'm the Head of Investor Relations. Joining me this morning are our CEO, Gianluca Palumbo; and our CFO, Simone Conticelli.

Our presentation and related financial information are available on our website, www.enel.cl, in the Investor section, as well as through our investors app. In addition, a replay of the call will soon be available. At the end of presentation, there will be an opportunity to ask questions via webcast chat through the Ask a Question link. Media participants are connected in listening mode. Gianluca will kick off the presentation by covering key highlights of the period, our portfolio management actions, and providing updates on the regulatory 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 the call to Gianluca.

Thank you, Isabela. Good morning, and thank you for your participation. Let's start the presentation with our main highlights of the period. Let's begin with portfolio management. During the quarter, hydrological conditions were favorable, which helped us reduce portfolio risk and supported a stable operating performance across the business. We will come back to this point in more detail later on. At the same time, through EGP Chile, we started the construction of 3 battery energy storage projects in the northern part of the country. These BESS projects will add around 0.5 gigawatts of additional capacity and will play a key role in strengthening the flexibility of our portfolio while supporting our commercial strategy.

In addition, Enel Generacion Chile signed a new LNG supply agreement with Shell. This agreement allows us to better valorize surplus gas volumes already available and to optimize LNG and Argentine gas supply for our generation business. Importantly, this initiative is fully aligned with our long-term business vision for Chile. This is particularly relevant in the context of the growing deployment of battery energy storage systems, which are essential to ensure a more flexible and efficient portfolio.

Let's now move to the country and regulatory context. Starting with the VAD 2020-2024 process, tariff resettlements have been postponed until July 2026. At this stage, the regulator is working on alternative solutions to fund this payment with the objective of avoiding any impact on regulated customers' tariffs.

Turning to the VAD 2024-2028 process. During the quarter, the regulator published the preliminary technical report, volume 2, in January 2026. Over the next few months, we are awaiting the publication of the final report.

Let's now turn to business profitability. The first quarter of 2026 delivered consistent financial results. EBITDA showed a solid improvement compared to previous years, plus 16% during the period. The extraordinary general meeting approved a capital increase of CLP 360 billion at Enel Distribucion Chile, reinforcing the company's balance sheet and overall financial flexibility.

In addition, the annual general meeting approved the final dividend, fully in line with our commitment to shareholder returns and value creation. In the next slides, we will go deeper into each of these areas and provide further details on the key drivers behind these results.

Let's move to Slide 4 to talk about hydrology and the progress of our battery energy storage project. Let me begin with our hydro generation. Hydro generation during the quarter remained broadly in line with last year's levels, as shown on the left-hand side of the slide. For 2026, we are forecasting hydro generation at 10.7 terawatt hours. This assumption is based on a conservative view on hydrology, fully consistent with the average evolution observed over the last 13 years that allows us to confirm our 2026 guidance. This is the case, even though the probability of an El Nino event has increased in recent weeks, with potential impacts mainly expected in the second half of the year. This level of performance is supported by our well-diversified hydro portfolio, together with continuous operational optimization.

Moving now to gas activities. On gas sourcing, we have signed contracts with Argentine gas suppliers with a longer tenure compared to previous years. These contracts secure firm volumes at more competitive prices, providing stable supply until April 2027. In parallel, in the context of high gas prices and the more flexible demand outlook for our thermal fleets, we concluded a negotiation related to our long-term LNG agreement. This approach is well aligned with our view of a gradual ramp-up of battery storage in the coming years, supported by a solid and reliable gas supply from Argentina.

Finally, let me focus on battery storage. We continue to strengthen our generation portfolio through the development of battery energy storage systems. These investments will increase the flexibility of our portfolio and support the long-term resilience of our generation mix.

In addition, they will continue to optimize our sourcing strategy. In this context, approximately 450 megawatts of new battery capacity are currently under development and will gradually start operations from [ 12-'27 ] ahead, in line with our planned investment schedule.

Now let's move to Slide 5, where we will review our generation portfolio and the energy balance. Let me start with our generation portfolio. We entered 2026 with a solid and well-diversified portfolio. In fact, our total net installed capacity stands at 8.9 gigawatts, of which 78% comes from renewable energy sources and BESS. Therefore, this structure enhances flexibility and supports a balanced and resilient energy mix.

Moving now to our energy balance. During the first quarter of 2026, net production remained stable compared to the same period last year. This performance reflects the flexibility of our generation portfolio. Higher contributions from wind, solar and efficient natural gas combined cycles more than compensated for the slightly lower hydro generation. Physical energy sales amounted to 7.5 terawatt hours, fully in line with the level recorded in the first quarter of last year. This confirms the stability of our commercial positioning, supported by our diversified sourcing mix. On energy purchases during the quarter, we maintained a similar purchasing mix compared to last year. This included 1.3 terawatt hours of net spot market purchases and 0.8 terawatt hours sourced from third parties.

And now I would like to take a moment to share with you some key topics related to the distribution business, which we will cover on the next slide. Let me start with the tariff review shown on the left-hand side of the slide. We are in the 2024-2028 distribution tariff review process. In January of this year, the regulator released the second version of the technical report. The remaining technical steps are expected to lead a final tariff determination in the second half of 2026. Overall, the review is progressing in line with the regulatory timetable.

Turning now to the VAD 2020-'24. The settlement of the outstanding debt with distribution companies, which was originally scheduled to begin earlier, has been postponed to July 2026. For Enel Distribucion, the amount to be received is around USD 65 million, while at the distribution sector level, the total amount involved is approximately USD 900 million. We remain confident that the process will progress toward the prompt resolution, considering its relevance for the sector and the need for orderly completion.

Turning to distribution reform. We continue to see constructive and positive engagement from stakeholders, together with the growing and broad consensus on the need to further evolve and modernize the distribution framework in Chile. This is particularly important in the context of electrification and considering the long-term nature of distribution investments.

Finally, a few words on grids and execution. We continue to reinforce specific parts of the network, while at the same time expanding digitalization and remote control solutions across the network. These actions allow us to restore service faster, improving customer experience, and strengthen the flexibility and resilience of our networks. Overall, execution and distribution remains solid, with a clear and continued focus on service quality.

And with that, I will now hand over the presentation to Simone.

Many thanks, Gianluca, and good morning, everyone. I will begin my presentation with an overview of our key results for the period. As shown on the slide, during the first quarter of 2026, EBITDA reached $423 million, with a 16% increase compared to the same period of last year. The improvement was mainly driven by a better integrated margin performance.

First quarter net income amounted to $162 million, representing a 7% decrease compared to the result of first quarter 2025, mainly due to higher depreciation following the commissioning of the new renewable plants and lower capitalization of interest.

Finally, first quarter FFO reached $122 million, representing a 12% increase compared to the same period last year. The improvement is due to a combination of several factors, which will be commented on the following slides.

And now let's move to the next slide to talk about the investment made during the quarter. First quarter investment amounting to $111 million were mainly allocated to the development of BESS project, increasing the value of our power plant fleet, and the reinforcement of our distribution network.

Let's review the allocation in more detail. 41% or $46 million were invested in renewable and storage. 31% or $34 million supported thermal power projects. 20% or $31 million was directed toward grids investments. In the renewable segment, we have focused our effort on the development of BESS project, as announced in our strategic plan, on the enhancement of hydro capacity performance, and on the improvement of fleet availability.

In the thermal segment, the priority has been the maintenance and performance enhancement of the power plant fleet. Finally, regarding grids, the focus remain on the resilience program to strengthen the distribution network and ensure service continuity under adverse weather condition.

Passing to the nature of investment. First, asset management CapEx totaled $58 million, accounting for 52% of the total CapEx. The main activities have been the maintenance of Atacama, Quintero and San Isidro CCGT, the maintenance of renewable fleet aimed at ensuring plant availability, and some activities for the corrective maintenance and digitalization of grids.

Second, development CapEx amounted to $40 million, mainly invested in batteries development, which represented 75% of total, and digital meters and grids remote control equipment.

Finally, customer CapEx totaled $13 million, mainly invested in low and medium voltage connection project and initiative to support load increase.

Let's now go on to the next slide, which provide a closer look at the EBITDA performance. In the first quarter of 2026, our EBITDA reached $423 million. The increase of $58 million compared to the same period of 2025 is mainly explained by the following factors.

Starting with the integrated business, we recorded an increase of $67 million, mainly due to, first, lower natural gas costs that reduce the variable production cost of our thermal power plants and the spot energy purchase costs. And second, the positive impact of the optimization of gas sourcing, which allowed us to improve LNG and Argentine gas supply for our thermal fleet, extracting value from our gas contracts portfolio, as previously commented by Gianluca. These positive impacts were partially offset by the termination of certain high-priced regulated contracts and higher provision related to energy and transmission charges adjustments booked in 2025.

Going to grids. We recorded a decrease of 18%, mainly due to the positive impact of issuance provision on 2025 and the impact of the higher O&M expenses associated with the anticipation of the 2026 winter plant activities, partially offset by a higher contribution from complementary distribution activities, mainly related to the new customer connections.

Now let's move to the next slide to review the net income evolution. Net income amounted to $162 million in the first quarter of 2026. The difference compared to the first quarter 2025 is mainly due to the $58 million improvement in EBITDA, thanks to the more efficient sourcing, partially offset by higher depreciation and amortization, mainly related to the commissioning of new renewable capacity in the generation business and higher financial expenses, partially due to lower interest capitalization in the generation business.

And now passing to the next slide, let's analyze the FFO composition for the first 3 months of 2026. In the first quarter 2026, FFO reached $122 million as a result of the following factors: first, EBITDA totaled $423 million, as previously explained; second, the increase of net working capital amounted to $161 million, mainly due to seasonality of energy payments and gas optimization agreement, for which the payment was registered in April; third, financial expenses amounted to $93 million, also including the settlement of hedging derivatives; finally, income tax expense payments amounted to $48 million, mainly related to generation business.

Passing to the comparison with the results of the first quarter of 2025, the 2026 FFO was $13 million higher, mainly thanks to the EBITDA increase for $58 million, the lower increase of net working capital for $27 million, mostly due to lower CapEx payment related to the new development capacity, the positive effect of energy payment scheduling, partially offset by the increase of account receivable following the LNG agreement settled in April, the higher financial expenses for $62 million, and the higher income taxes for $9 million, reflecting higher monthly payment tax rates.

Now let's take a look at our liquidity and leverage position.

Gross debt amounted to $3.9 billion as of March 2026, remaining broadly flat compared to December 2025. The slight increase reflects the seasonal cash and working capital requirements, which were temporarily funded through a $50 million drawdown on the CAF credit line, partially offset by a $9 million reduction in IFRS 16 lease liability.

The average term of our debt maturity reached 5.4 years by March 2026 versus the 5.8 years seen in December 2025, and the portion at a fixed rate was 85% of the total debt.

The average cost of our debt reached 4.9% as of March 2026, in line with December 2025 figures. Regarding liquidity, we are in a comfortable position to support our capital needs for the upcoming months and cope with next year maturities.

As of March 2026, we have available committed credit lines for $640 million and cash equivalent for $454 million.

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

To conclude, our resilient and diversified business model supported solid and stable results in the first quarter of 2026, even in a volatile operating environment. A well-balanced portfolio combined with disciplined execution continues to provide resilience, allowing us to navigate changes in market and climate conditions with confidence.

Second, electrification is clearly emerging as a key driver of demand growth in Chile. This trend is supported by structural developments across mining, industry, transport and electromobility. In this context, we remain closely engaged and well-positioned to support the country's electrification process, leveraging our integrated offering of clean energy, infrastructure and services. At the same time, we continue to closely monitor regulatory developments and their potential impacts.

Finally, our solid financial position and flexible business model continue to support the execution of our investment plan and our ability to meet financial commitments. This financial strength allows us to continue investing in renewables and battery storage while maintaining financial discipline and delivering sustainable returns to our shareholders.

Now let me hand it over to Isabela for the Q&A session.

Thank you very much, Simone and Gianluca. We now start the Q&A. As a reminding, we are receiving questions from our chat on the application. So I will start now, Gianluca and Simone, with the first question. We actually received this question from several analysts, including Andrew McCarthy from LarrainVial. I will do the questions, okay?

So the first one is, congrats on the results. Apart from the gas valorization agreement, which is a positive one-off in your results, could you please indicate which other one-off negatives you have incurred in your first quarter 2026 figures? Basically, I'm interested in knowing the recurring EBITDA booked in the first quarter 2026.

Actually, on the same, we also received a question regarding what we have mentioned in the EBITDA, regarding the provisions recorded in the first quarter 2026 related to energy and transmission charges. Simone?

So thank you for the question. So you are right, in this quarter, we have more than one nonrecurrent effect. The first one is the impact of the agreement with Shell. That is a positive impact, but then was partially offset by some problem with the transmission line that impacted in our efficiency. And on the other side, this impact can be around $50 million, and then around $60 million of adjustment coming from the previous year. The main part from 2023, it was related to an adjustment of the ancillary services booked in this year after quite a long discussion with the system, we finally take the final decision, and this has an impact of minus $30 million. So to make a synthesis, if you normalize all these nonrecurrent effect, our results is around $360 million, $370 million for the quarter.

Okay. So we are receiving several questions. Let me go to the second one. So the second one is coming from Javier Suarez from Mediobanca. Javier has several questions that I will split here. So the first one is, can you update on the key factors on the ongoing negotiations with regulator of the distribution regulatory framework? And also on the same page on distribution, he also is asking why, in other words, what is the reasons for the postponement of the settlement to July 2026 relating to VAD 2020-2024? Gianluca, this is yours.

Yes. Okay. So let me start for the first part. On the distribution regulatory framework, the VAD 2024-2028 process is still ongoing, so the methodology remains based on the reference model company with a regulated real post-tax WACC, as you know, of 6%. We believe there is still room for improvement in the CNE proposal, and we are actively participating with the distribution association in the observation and the discrepancy process. The final technical report is expected by June 2026, and the tariff decree in early 2027.

So regarding the postponement of the VAD 2020-2024 settlement, the estimated impact is around USD 765 million. The recovery mechanism was defined by the SEC in February 2026, but collection was postponed by 3 months. So in this moment, our current planning assumption is collection from July 2026, while the Ministry of Energy is also evaluating alternative mechanisms, including potential debt factoring.

Now, another question from Javier. The other question from Javier, Simone, this is for you. Can you give more details on the profitability of the BESS project in Chile in terms of IRR?

Yes, thanks for the question. First of all, let me make a initial comment saying that Enel is developing new BESS, following the strategical goal to balance our portfolio. So first of all, we see this BESS project like an improvement of our portfolio and a way to have some energy shift that can result in a better match between the demand and the production curve. But looking at the BESS project as a stand-alone project, what we can say is that we launch this kind of project only if the return is at least 300 basis points above our WACC. Also that we make also some stress test trying to change the market condition to see the resilience of this kind of project also to some more stressed and critical scenarios.

So move on. The other question is coming from Fernan Gonzalez. This is also for you, Simone, from BTG Pactual. So the question is: why did energy purchase cost in the generation segment increase so much if volumes were similar with last year and its spot prices were significantly below the first quarter 2025 levels, even in the non-solar hours? Simone?

Okay. So in such a way, we answer at the beginning indirectly to this question, because this negative impact from adjustment from the past, entered as sourcing cost, and so You are looking also at the impact of this negative adjustment.

So moving on, we're receiving a lot of questions. So the next one is coming from Andrew McCarthy, another question from Andrew from LarrainVial. Good morning. Energy losses in the distribution segment continued to deteriorate during the first quarter 2026. Can you comment on what is driving that, how you expect to evolve, and what can be done to reverse the trend? Gianluca.

Okay. Thank you for your question. Energy losses increased mainly due to tariff adjustments and some change in customer behavior, which have led to a rise in not technical losses, such as the debt. So in the first quarter, losses were also impacted by lower than expected demand and a more competitive market environment. That said, our loss levels remain below the regional averages, and we have a clear plan to reserve the trend. So we are strengthening our loss reduction strategy through this plan. So first of all, improved inspection targeting using better analytics. Second, expansion of micro and macro metering, so this is an action to help the balance -- micro balance. Increased field action and controls, considering the better analysis that we will do. And finally, enhanced coordination with authorities to address illegal connection. That is one of the problem that we have. So looking forward, we expect losses to gradually decline, targeting around 5.7% by 2028, supported by these operational and technological improvements. That is very important for us.

I'm checking here other questions. Okay. So the other question is coming from Felipe Flores from Banchile Citi. The question is: my question is related to the capital increase in distribution. Will this be subscribed by Enel fully using cash? How does the company plan to finance it, or it's already covered? How much would take to recover the money? So Gianluca, if you can give some color on the capital increase.

Yes, of course. Okay. The capital increase is intended to strengthen Enel Distribucion financial position, and it's expected to be supported by controlling shareholders in line with its long-term commitment to the business. So from a financial perspective, it will be covered through group level financial resources, ensuring obviously efficiency and flexibility.

So in terms of returns, this is not a short-term recovery investment. It supports the long-term sustainability of the business through improved financial structure, lower financial costs and maybe it's very clear, the ability to execute the investment plan under regulatory framework. This is the last question that I can add in this case. Okay.

I'm checking here. We have receiving another question. Some of them, we have already talked about that is related the capital increase and also on the postponement on the VAD, so I'm continue checking here. Another one was a question also, Gianluca, regarding the VAD 2020-2024, that potentially is going to be a new pack. But Gianluca has already answered this. That is one of the proposals that could be done in order to have the payment on the VAD.

So let me -- just a second. Okay. So we have other questions that is coming from Juan Felipe Becerra, that is relating -- he can -- he ask Simone, if you can give more details on the gas optimization contract on Shell. We have already included, but if you can check also.

Now, he has another question. Does this optimization imply lower contracted volumes or changing pricing terms with Shell? And regarding the 3 BESS projects highlighting the presentation, can you provide more details on the expected time line for each project to reach COD and enter in EGP capacity? Simone?

So let's start talking about the Shell agreement. This is an agreement that has the goal to optimize our portfolio. As you know, we have a very valuable portfolio of gas contracts. Part of the contracts is for GNL. Part of this contract is for gas from Argentina. What I want to stress is that the total amount of volume of gas that we can manage is higher of our needs, even stressing the needs of our power plant during a dry year. So what we have done in this agreement is try to rebalance the amount of the GNL contract to make coherent our portfolio. And we did it in a very right moment in such ways, so we have also positive impact on 2026 results.

On the other side, talking about the BESS.

Yes. This is go to Gianluca.

So regarding the 3 BESS, to complement, the answer, regarding the 3 BESS projects highlighted in the presentation, let me know that, we could you provide more detail on expected time line. So in this case...

Yes. So the question, Gianluca, was regarding the BESS. What we are expecting the COD on the BESS side. Also what Gianluca was saying that we are expecting -- it's included in our business plan that we have recently presented. And Gianluca, if you want, now your mic is up.

Okay. I understand.

Going back again. Thank you.

Okay, okay, okay. During 2025, we focused on engineering, permitting and project preparation. With the regulatory framework now in place, we are starting construction in 2026 and expecting the COD during the third and the fourth quarter of 2027. So our strategy also included additional BESS investment, like we presented in the last Capital Markets Day, in 2027 and 2028, reinforcing storage as a core pillar of our portfolio. So we will continue to closely monitor market conditions, maintain flexible approach, focus on profitability and value creation. This is our pillar in our optimization of our portfolio.

Another question is coming from Jay Samani from Scotiabank. This is for you, Simone. SO where do you see Enel Chile next avenues for growth, given that lower demand from unregulated customers? He's mentioned about the termination of the PPA -- regulated PPAs. How is Enel Chile position itself for long-term? And can we expect the company to maintain the current earnings level for growth? He's asking about our business plan.

So can you repeat me the first part of the question, please?

Yes. Jay is asking you, where do you see that Enel Chile is going? What are the strengths of our plan? He's also mentioned that we see -- we have seen the results, not the reduction of the regulated PPAs, so he's asking what we are seeing the long-=term? So we are seeing more regulated customer coming on, new auctions, and how we are positioning ourselves in the long-term?

Okay. Enel will confirm its strategy. In this moment, clear we see a reduction in the volumes of regulated contract, but this is related in how the auction now will rise in the market. What we have to stress is that we want the full last to auction also at a valuable price on the market. So we have a very good portfolio in term of price in the short-term. Also, we can stress the fact that the pricing of our portfolio, the average price in the next 3-year, we will maintain the same value, even if the price on the market is going down. And for the full following year, we will keep on looking to a good mix among short-term opportunity and also long-term contract. That can be new regulated auction, but also, long-term contract with the big customer.

We have a last question that is coming from Isabella from Bank of America. So she's asking: what is the minimal cash position you are operationally comfortable with? You currently have a cash position of around $454 million. Do you plan on using your credit lines this year, or will you refinance your short-term debt?

So thanks for the question. You know that our business has a strong seasonality with some needs in terms of financing in the first and in the second quarter, and then -- and higher cash production in the second half. We have an internal model to define the comfortable minimal cash position to cover the net working capital needs. And then for the future financial needs, we plan to refinance using a long-term financing that in this moment is under negotiation.

We do not have any more questions coming here from the chat. So any other doubts that you may have, the Investor Relations team will be fully available to execute other calls and to go into more details. Thank you very much for connecting today. Have a nice holiday. Thank you.

And this concludes our conference. Thank you for participating, and you may now disconnect.

Good morning, ladies and gentlemen, and welcome to Enel Chile Full Year 2025 Results and Strategic Plan 2026 to 2028 Conference Call. My name is Connie 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 statements may include Enel Chile's S.A. current expectations, intentions, plans, beliefs or projections. Forward-looking statements are based on management's current assumptions and expectations, do not guarantee 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 on its full year 2025 results and Strategic Plan 2026 to 2028, in the presentation accompanying this conference call and Enel Chile's annual report on Form 20-F under Risk Factors. You may access our full year 2025 results and Strategic Plan 2026 to 2028 press release and presentation on our website https//www.enel.cl and our 20-F on the SEC's website www.sec.gov.

Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of their date. 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 Ms. Isabela Klemes, Head of Investor Relations of Enel Chile. Please proceed.

Good morning and welcome to Enel Chile's Full Year 2025 Results and Strategic Plan 2026 up to 2028 Conference Call. We greatly appreciate you taking the time to joining us today. My name is Isabela Klemes and I'm the Head of Investor Relations. Joining me this morning is our CEO, Gianluca Palumbo; and our CFO, Simone Conticelli. Our presentation and related financial information are available on our website www.enel.cl in the Investors section as well as through our Investors app. In addition, a replay of the call will soon be available.

Let us now look at the agenda on Slide 2. First, we will begin with an overview of the market context in Chile followed by a review of our 2025 performance. We will then present our 2026-2028 strategic plan, outline our key priorities, targets and value creation drivers for the period. At the end of the presentation, there will be an opportunity to ask questions via the webcast chat using Ask a Question link. [Operator Instructions].

Before we begin, we would like to share a short video that highlights how Enel Chile is building a more resilient and better synergy platform strengthening the present while shaping the future.

[Presentation]

And now it's my pleasure to hand over the call to our CEO, Gianluca Palumbo. Gianluca, the floor is yours.

Thank you, Isabela, and a warm welcome to everyone joining us. Let me start with this slide, which sets the broader context for our strategy. It shows how rapidly Chile's energy landscape is evolving and why the power sector plays such a central role in this transformation. Chile is entering decisive phase of its energy transition. Electrification is accelerating, system complexity is increasing and resilience has become essential. In this environment, the energy sector becomes a key enabler of the country net 0 ambition. Importantly, Chile starts from a position of real strength.

The country combines world-class renewables resources, diversified and mature energy metrics and a solid policy framework moving from carbon neutrality targets to accelerate renewable penetration and electromobility goals. Few markets offer this combination. Building on these foundations, a new wave of opportunity is emerging; the electrification of strategic sectors, the development of higher value industry such as data center and rising demand linked to critical minerals.

At the same time, this transition requires an energy system and an integrated energy platform able to evolve quickly with more flexible and digitalized ways capable of operating reliably through this change. Climate volatility is also becoming a structural feature of the system increasing pressure on network and reinforcing the need for robust and resilient infrastructure. The message is clear. Chile offers strong fundamentals for the transition and Enel Chile brings the execution capabilities and platform to deliver it ensuring reliability today and building system for tomorrow.

With that context in mind, let me move to the next slide, which shows how Chile has already translated this ambition into tangible progress in decarbonization and electrification. Chile is widely recognized as one of the early pioneers in power sector decarbonization and this leadership is clearly reflected in evolution of generation mix. Over the past decade, renewables have rapidly become the majority of installed capacity. A key element of this progress has been diversification within renewables.

Solar and wind have gained significant scale while storage technologies are beginning to establish their role strengthening power system resilience and supporting the long-term stability of the transition. In addition, Chile's growing digital infrastructure is creating new sources of electricity demand. As of 2025, there are 325 megawatt of connected capacity associated with data centers and public sources estimate that this could rise to around 1,200 megawatts by 2030 reinforcing the structural shift in demand. The KPIs presented here confirm this direction; higher electricity consumption, a significant expansion of installed capacity and accelerated transport electrification.

Together, these indicators reflect a structural transformation in both demand and system capabilities across the country. For Enel Chile, this confirms 2 fundamental points. First, Chile is moving decisively towards a cleaner more electrified economy and diversified energy system. And second, our strategic focus on renewables, electrification, network resilience and innovative customer solution is fully aligned with this trajectory. This alignment is what position us to support growth while delivering reliability, sustainability and long-term value for the system and for our stakeholders.

Building on this progress, the next slide shows how Chile's policy framework has played a fundamental role in enabling this transition by creating the condition for the system transformation we see today. Despite the significant progress achieved, a regulatory-driven transition framework remains essential to provide the visibility and predictability needed to sustain long-term investment in Chile's electricity sector. Chile energy agenda is both ambitious and increasingly complex. It combines long-term climate commitments with near-term adjustments required to maintain system stability while electrification accelerates.

Distribution is a clear example. There is broad consensus that the current regulatory model designed more than 40 years ago no longer reflects about the customer expectation, the scale of electrification or the level of investment required to build a more resilient and digitalized network. In parallel, system operation and coordination rules must continue to evolve to manage a more decentralized and variable generation mix. These technical standards for security and services quality must strike the right balance between high operational requirements and efficient planning and execution.

We are currently assessing the implications of these new requirements across our operating feed with the focus on BESS system. In addition, a well-defined self-consumption framework is particularly important for large-scale data centers. Clear grid lines for flexible solution behind the meter will enable new investments, reduce congestion in transmission networks and allow the capture of all renewable potential that is currently unused due to curtailment, all this while ensuring full coordination with system operations.

Overall, this regulatory development share a common objective enabling Chile to advance to the next stage of its energy transition with clarity, resilience and confidence. Achieving this will require close and constructive collaboration between authorities and industry to ensure successful implementation. Let me now turn to our 2025 results, which clearly demonstrate our resilience and operational flexibility even in what was effectively a stress test year.

We successfully achieved our 2025 guidance despite the challenging scenario and operating conditions. This reflects the robustness of our business fundamentals and the discipline of our execution. During the year, we deployed CapEx with a clear focus on enhancing flexibility and resilience across our portfolio ensuring that our assets remain reliable and fully aligned with evolving system needs. From a financial perspective, we maintained a comfortable liquidity position, which allow us to consistently meet our debt obligations while navigating a period of elevated uncertainty.

I would also like to highlight that our dividend policies for 2025 has been confirmed reaffirming our commitment to financial stability and to sustainable value creation for our shareholders. Overall, these results confirm that even in a highly demanding context, our strategy continues to deliver stability, resilience and long-term value. This performance give us the confidence to continue our journey well positioned to face future challenges while continuing to deliver on our commitments to customers, shareholders and the electricity system. Let me now walk you through our CapEx deployment in 2025 on the next slide.

A significant portion of our CapEx was allocated to continue strengthening the flexibility and resilience of our portfolio, ensuring that our assets can respond effectively to evolving system needs. We also invest to optimize the availability of our gas-fired power plants, which continue to play a critical role in system reliability acting as an essential backup to renewable generation. In addition, we dedicate resources to grid flexibility and resilience reinforcing infrastructure that is fundamental for managing demand and maintaining services continuity. Part of this investment also supported the successful execution of our winter plan ensuring reliable services for customers during the most challenging months of the year.

Now I will hand over the presentation to Simone to give you more details about 2025 figures.

Thank you, Gianluca, and good morning, everyone. Let's review now our generation portfolio and energy balance as well as our grids KPIs for 2025. Now we are on Slide 11. During the year 2025, net production decreased by 12% compared to 2024. This decline was driven by lower hydro dispatch due to 2025 extreme drought, reduction in renewable energy production mostly due to extraordinary maintenance activities of 2 solar plants, higher curtailment levels also caused by transmission line limitation. These effects were partially offset by higher contribution from our efficient CCGT power plants.

In 2025, energy sales amounted to 30 terawatt hour compared to 33.3 terawatt hour of 2024 mainly due to the lower regulated sales following the expiration of 2008 and 2013 regulated auctions while free market sales remained stable at 19.4 terawatt hour. Moving to grids business. As already anticipated by Gianluca, we analyze the selective usage of our CapEx to add more flexibility to our grids. Particularly we increased the installed remote control equipment to support network automation and digital meters to improve service quality through network digitalization.

In summary, our diversified portfolio and ongoing digitalization effort enabled us to achieve our targets and meet our customer needs across both generation and grids businesses. And now let's turn to the next slide, which provides a more detailed look at our EBITDA performance. In 2025, our EBITDA totaled $1,473 million with an increase of $52 million compared to 2024 EBITDA that was adjusted not including the impact of the 2024 functional currency change. This growth was mainly driven by the following factors. Starting with the generation business.

We recorded a decrease of $286 million in PPA sales mostly due to recognition of some high price regulated contract, which affected both volume and average price of the regulated portfolio. This was partially offset by the negative impact of exchange rate hedges recorded in 2024 and the positive price effect due to the indexation of the free market contracts. Regarding sourcing, we recorded a positive effect of $172 million despite the $34 million negative impact related to the transmission line restriction, which occurred mainly in the first half of the year.

The result was obtained thanks to lower spot and third-party's energy purchase costs, insurance provision mainly to cover the aforementioned extraordinary maintenance activities of 2 solar power plants and finally, lower transmission costs. Gas trading contribution to the margin increase was $87 million driven by higher gas trading activities compared to 2024. Turning to grids, we recorded a positive impact mainly due to the provision reflecting the higher tariff expected for '24-'28 regulatory period, higher OpEx recorded in 2024 mainly due to the extreme weather events and some settlement from previous years partially offset by the increase of O&M expenses mainly associated with the implementation of the comprehensive winter plan.

Additionally, we recorded an increase in maintenance activity and generation costs mainly due to the newly developed capacity. Finally, in 2025, we recorded the one-off cost of the incentivized early retirement plan to support the company reorganization aimed at improving internal skill and performance. And now let's move on to the next slide where we will review the net income evolution.

Our 2025 net income amounted to $538 million, 14% lower than last year adjusted figure mainly explained by the $52 million increase in EBITDA that we have already commented; higher depreciation, amortization, impairment and bad debt expenses for $93 million mainly due to the $59 million impact of the commissioning of new renewable capacity; and $18 million increase of risk bad debt provision mainly due to higher billing resulting from tariff increases and longer overdue customer debt.

Regarding financial results, we recorded a negative variation of $61 million mostly explained by lower capitalized expenses on renewable project for $83 million, higher financial expenses for $42 million related to methodological adjustment of the first half 2026 PNP technical report issued by the National Energy Commission partially offset by lower financial expenses for $37 million resulting from lower average outstanding debt and lower average interest rate. Finally, we recorded a $4 million reduction in corporate income tax expenses mostly explained by lower results.

And now let's move on to FFO analysis and leverage position. Our 2025 FFO reached $1,067 million as a result of the following factors. First, EBITDA totaled $1.5 billion as already commented. Second, the recovery of PEC receivable in 2025 contributed for $299 million mainly thanks to factoring executed in April 2025 related to PEC II and III and the recovery from the tariff of $38 million of PEC I receivable. Third, the increase in net working capital for $248 million mainly due to CapEx payment related to 2024 renewable development and lower collection in our grids business and other seasonal effects.

Fourth, the payment of income taxes for $275 million mainly in the generation business. Finally, the financial expenses totaled $183 million mostly for debt-related costs. The 2025 FFO is lower by $142 million compared to the previous year due to stronger impact of PEC recovery mechanism in 2024 for $88 million, higher increase of net working capital for $95 million mainly due to the positive hedge effect in 2024 and higher amount of income taxes paid for $70 million reflecting both stronger results and higher monthly payment tax rates.

These effects were partially offset by the already commented EBITDA increase and lower financial expenses for $58 million mainly driven by a lower average debt level during 2025. Passing to debt on the right side of the slide, we can see that our gross debt amounted to $3.8 billion as of December '25, a 2% decrease compared to December '24. The average term of our debt maturity decreased from 6.2 years as of December '24 to 5 years as of December '25 and the portion at fixed rate was 87% of the total debt. The average cost of our debt decreased from 5% as of December '24 to 4.9% as of December '25, 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 cope with the next year maturities. As of December '25, we have available committed credit lines for $690 million and cash equivalents for $462 million.

And now I will hand over to Gianluca to illustrate our 2026-2028 strategic plan.

Thank you, Simone. To recap, the execution delivered in 2025 clearly confirms the strength of our strategic priorities and the direction we have set for the company. We demonstrated resilience, flexibility and disciplined execution in a more demanding environment while continuing to create value. Building on this solid foundation, let's look at how our strategy comes to life in the 2026-'28 plan.

Please turn to the Slide 17. The slide illustrates both of our strategy and our vision for the next phase of our integrated margin approach. It shows how our investment and management action act as catalysts for long-term value creation while progressively improving profitability and reducing the overall risk profile of the business. First, we are further optimizing our commercial strategy. This allow us to anticipate market changes, respond with agility and capture opportunities while reducing exposure to not solar, but price volatility and prioritizing stability through an integrated approach.

Second, we are asserting our integrated offering by combining innovation, technology and customer-centric solutions to enhance the resilience, flexibility and competitiveness of our portfolio. These allow us to continue partnering with climate aware customers seeking renewable energy and efficiency solution to support their sustainable growth. Third, we are reinforcing our active portfolio management supported by a diversified nationwide sourcing platform. This strengthens our ability to balance positions, enhance resilience and maintain a competitive energy offering across market cycles.

Finally, we continue with a disciplined and selective approach to renewable investments, allocating capital where we can generate the greatest impact in terms of profitability, electrification and the energy transition. We focus on projects that combine solid returns with a clear strategic value. Together, these actions improve our risk return profile and reinforce our commitment to disciplined execution, value creation and long-term sustainability.

Now let's move to our commercial business model and how we will continue capturing market opportunities. Building on what I have just outlined, our commercial strategy is anchored in a solid nationwide platform with presence and capabilities across the entire country. This allow us to capture value-accretive opportunities in both the regulated and free markets. At the same time, to manage risk in a balanced and disciplined way. We are not just an energy supplier. We offer an integrated proposition of energy and services supported by a diversified asset base that provides flexibility, resilience and a strong competitive position.

A key differentiator of our model is our energy partner's approach through which we provide expert personalized support and tailor-made solutions that reflect the needs of each customer. This enables an agile, flexible, commercial offering and strengthened long-term relationships built on efficiency and sustainability. In parallel, we have modernized and expanded our customer platform, integrating more digital and proactive channels that enhance retention, increase value per customer and improve our ability to anticipate market needs.

Overall, our national-wide scale, integrated offering and strategic proximity to customers keep us aligned with market dynamics ensuring agility in execution, reducing risk and consistently creating sustainable value. Let me now turn to the elements that support this strategy and how they translate into resilience, stability and value creation over time. We have built a solid, diversified and long-term contract portfolio across both regulated and free market customers. This structure provides stability and a robust competitive position consolidating our leadership in a key segment, including regulated clients, mining and both small and large free market consumers.

Between year-end 2025 and 2028, we expect contracted volumes to grow together with greater diversification across offtakers. In the regulated segment, legacy contract expiries will be offset by new regulated bidding contracts starting supply between 2026 and 2027 that will ensure continuity and strength in our portfolio. Portfolio duration is a structural advantage. Our PPAs have an average life of around 15 years giving us predictable and recurring EBITDA generation. This stability is reinforced by disciplined pricing with an average PPA price close to USD 65 per megawatt hour reflecting a solid and well-aged commercial position.

At the same time, our growth is not limited to energy supply. We are advancing decisively in high value solutions and by 2028, we expect significant expansion in customer installed EV, electric vehicle charging infrastructure and Enel solutions focused on efficiency and energy management. These businesses position us as a strategic partner in electrification and energy transition. Overall, our strategy integrates contractual stability and the expansion of high value products and services, strengthening our financial resilience and generating sustainable long-term value.

With this foundation in place, let me now turn to our CapEx strategy for the coming years. In the context of a rapid renewable growth in Chile, our 2026-'28 plan focuses on strengthening our portfolio along 3 dimensions: flexibility, technology and geographic diversification. These 3 pillars guide our investment decisions and shape how we position the company for the coming years. And all of this is supported by disciplined and strategic investment effort that strengthens our profitability and operational reliability.

To navigate Chile's evolving energy landscape, our initiative are: BESS deployment, hydro enhancement, maximizing generation potential and asset resilience and improvements in term of performance adding additional flexibility that the system needs. Aligned with this road map, our total integrated margin CapEx for 2026-'28 amounts to about USD 1.6 billion. Out of this, roughly $1.0 billion is dedicated to development with a clear prioritization of BESS and new wind projects. This technology mix is essential to ensure the system flexibility that Chile increasingly requires.

As a result, renewables will reach around 80% of our generation mix by 2028 enhancing flexibility, profitability and competitiveness while supporting our commercial strategy. Overall, this allocation reflects a balanced and derisked investment approach. It is aligned with market condition and mitigates exposure to price volatility, cost inflation and regulatory evolution always under strict capital discipline. Let me now show how these investments translate into new capacity, a stronger nationwide sourcing platform and ultimately, a more robust and competitive energy mix for Enel Chile.

Over the 2026-'28 period, we plan to add around 1 gigawatt of renewable capacity reaching a total installed capacity close to 10 gigawatts by 2028. This includes the deployment of battery systems and maintains a well-diversified platform across the country. We currently have 3 projects under execution; BYD bus, Azabache and Las Salinas; totaling around 0.5 gigawatts in the north of Chile, all expected to enter operation during 2027. In our plan, we are also including an additional 0.5 gigawatts split between new battery systems and wind capacity.

During this year, I will provide further details on the evolution of our expansion and other initiatives in term of portfolio management designed to continue balancing and derisking our portfolio. All these initiatives are fully aligned with current market signals and are designed to mitigate exposure to energy price volatility, investment cost trends and regulatory evolution while maintaining strict capital discipline. Having defined the strategic direction for the next phase, let's now focus on the distribution businesses and how our decisions are generating value even under regulatory challenges.

Our approach to distribution is increasingly centered to disciplined and value-driven decisions. We are operating in a more challenging environment where climate related pressures influence costs and tariffs. Electrification is reshaping consumptions and customer expectation are rising. Our investment priorities are fully aligned with this reality. We remain constructively engaged in the regulatory dialog to ensure that resilience, quality of service and network modernization needs are properly reflected in the regulatory framework. We will continue focusing capital on action that enhance distribution value, strengthening network flexibility, improving service continuity and supporting long-term asset performance.

Digitalization is a key enabler of this strategy. It enhances network visibility, accelerates response times and improves reliability and efficiency of our customers. In this context, our investment plan continues advancing the digital transformation of the network. In parallel, we are strengthening our customer-led service model. This means ensuring timely service delivery, improving the execution of new connection, enhancing how we manage services interruption through our quality and resilience programs and elevating the experience across both our physical and digital channels.

All of this contributes directly to higher satisfaction and trust, improving the risk return profile of the distribution business and reinforce its role within our portfolio. Let me now turn to how our business and capital management approach allow us to navigate the regulatory cycle while supporting the evolving needs of the distribution business. The regulatory framework remains a critical element for planning and for protecting long-term value in distribution business. For this time, we are not assuming changes to the existing regulatory framework. Our assumptions are based on our best current assessment of the 2024-'28 regulatory cycle.

Before moving to our management actions, let me briefly comment on the 2024-'28 VAD cycle. The regulator released the second version of the technical report in January 2026 and the final report is expected in the second half of this year. As the process advances, we will have visibility on the regulatory framework at each stage. Under the current regulatory model, we have refined our CapEx plan prioritizing digitalization while maintaining strong focus on new connections. This balanced approach is essential as demand continues to grow and customer expectation is increased. The investments we are deploying together with updated operating procedures are designed to deliver a more agile and reliable operation.

This will directly improve the service experience for our customers and strengthen the flexibility and resilience of our networks. Let me highlight a few examples of how we are digitalizing and automating the network in ways that have a direct impact on quality and efficiency. We are increasing the number of remote control equipment across the grid, upgrading our main control systems, deploying more advanced digital tools to support field operations and replacing more than 100,000 meters with advanced metering technology. These actions strengthen network performance, improve service continuity and enhance long-term value in distribution business.

Now Simone will give us more details on the main financial and economic targets.

Thank you, Gianluca. Let me start by presenting our new investment plan for the coming years. We are allocating an investment of $2 billion for the period '26-'28, around $1.6 billion for generation business and around $0.5 billion for grids. The pillars of our strategy are the growth of our renewable energy portfolio, the enhancement of resilience and performance of our production plants and the flexibility and optimization of our grids operations. Enel will invest in the plan period about $1 billion in the construction of new power plants adding to the already launched BESS projects second wave for an additional 0.5 gigawatt of capacity and confirming the increase of 0.1 gigawatt of wind capacity.

The improvement of our production fleet is obtained mainly through repowering of some of our facilities, strengthening and preventing maintenance particularly in our thermal fleet and executing critical work such as in-pick structure erosion control. Additionally we are dedicating investment to address new environmental requirements. The improvement of our grids is achieved thanks to $0.5 billion of investment mainly focused on digitalization including digitalization of new telecontrol units and digital meters, which accelerate full direction and reduce response times. To conclude, the plan and investment will not only drive greater value for the company, but will also play a key role in reinforcing the country's overall system.

And now let's look at the value of this investment and our strategy for enhancing our integrated margin. We expect to reach about $1.8 billion of integrated margin by 2028. The growth will be mainly driven by the increase of the revenues despite the expiration of some regulated contracts, particularly the 2006 auction expired at the end of 2025; the 2010 auction which will expire in 2027. The result is achieved mainly thanks to the awarding of new regulated auction, which contribute to increased sales volumes and help to maintain the average price of our overall portfolio.

Furthermore, based on the strategy outlined by Gianluca, we plan to realize around $0.1 billion from commercial sourcing leveraging on: first, efficiency in thermal variable cost also thanks to the availability of Argentinian gas and the reduction of thermal volumes versus 2025 impacted by the extreme drop. Second, reduction of spot purchases during [indiscernible] thanks to the optimization of selling volumes and the higher production of renewable plants. And third, reduction of spot prices due to the increase of volumes of competitive natural gas and of the number of BESS in the system. Finally, the margin will increase a further $0.1 billion thanks to the contribution of our new BESS.

And now let's review the performance of our grids on the next slide. Our capital allocation for the 2026-2028 period is structured to ensure grids operational flexibility as well system resilience. We forecast around $0.5 billion of cumulative grids CapEx. The investment are distributed as follows: 47% to connect supporting load growth; 30% to quality, resilience and digitalization aimed at strengthening network reliability; and the remaining 23% to grids management supporting assertion asset life cycle and OEM activities. Cumulative EBITDA and FFO are expected between $0.5 billion and $0.6 billion. The choice of investing 90% of the FFO show Enel commitment to improve our grids despite the current regulation. We are not in line with market requirements.

And now let's look at the net income evolution for the next 3-year period. The net income is expected to reach a range between $0.5 billion and $0.7 billion in 2028. The main contributor to the increase is the EBITDA growth with an incremental impact estimated between $0.1 billion and $0.3 billion. The EBITDA growth leverage on the already commented increase of integrated power margin thanks to the improvement of sales portfolio and sourcing performance as well as the development of the new BESS and the slight improvement of grids results also thanks to the growth of distributed volumes. The low EBITDA variation are due to higher depreciation following the new renewable project, mainly BEST, that will start operating in the plan period.

Taxes increased for around $50 million following the higher results. Financial charges remain essentially flat with no major changes in funding costs. And now on the next slide, let's review our financial plan. Let's go through our financial strategy designed to ensure long-term growth and value creation. In the 2026-2028 period, we expect funds equivalent to $3.4 billion from the operations. This amount includes around $0.1 billion coming from the full recovery of PEC receivables. These resources will finance our investments with gross CapEx totaling $2 billion, in line with our strategy of developing certain growth opportunities while maintaining financial strength.

Additionally, we have allocated $1 billion for dividends considering a minimal payout of 50%. After the use of funds, we expect a positive change in net debt of $0.3 billion. To sum up, the stable and reliable sources of funds support shareholder value creation in the long term. We plan to maintain a solid financial position over the next 3-year period leaving room for potential new opportunities arising in the market and being prepared for eventual headwinds in line with our derisking approach.

And now let's move to the next slide to review our liquidity and debt position for the next 3 years. As previously mentioned, in the next 3-year period we will continue focusing on the optimization of our debt structure in line with our financial policy. We maintain a balanced debt structure combining long-term solidity with short-term flexibility. The resulting average maturity of about 6 years give us room to benefit from attractive market conditions. Our share of U.S. dollar-denominated debt moving from 90% to 91% remains high and consistent with the current profile of our cash flows.

We also continue increasing the percentage of fixed rate debt rising from 87% to 91%. The average cost of debt remain close to 5% reflecting our disciplined liability management. In conclusion, our financial policy reflects the election to maintain a robust, resilient and future-proof capital structure to support the development and performance of our business.

And now let's take a look at the following slide with a summary of our targets for the following years. Summarizing our strategy for the plan period is focused on improving our business performance while maintaining financial stability in a volatile market context. The strategic plan projects a cumulative EBITDA for the 2026-2028 period ranging from $4.5 billion to $4.7 billion. Looking at the 2028 figures, EBITDA target will range between $1.5 billion and $1.7 billion translating into a net income ranging from $0.5 billion to $0.7 billion.

Regarding the shareholder remuneration, we are confirming the dividend payout ratio from the previous plan leaving room for an eventual increase depending on future opportunities and market conditions. Of course this proposal shall be further discussed with our shareholders during the Annual Shareholders Meeting to take place by the end of April 2026. This dividend policy will allow us to create long-term value for our shareholders while ensuring a solid financial position in line with our long-term sustainable growth strategy.

So thanks, everybody, for your attention. And now let me hand it over to Gianluca for the closing remarks.

Thank you, Simone. To conclude, let me briefly recap the key messages we wanted to share with you today. First, we are executing an integrated commercial strategy, leveraging a diversified nationwide platform to capture value-accretive opportunities across markets. Second, we are applying disciplined capital and operating management to strengthen portfolio flexibility and resilience while maintaining a strong focus on execution. Third, our strategic plan is anchored in financial solidity and a balanced risk return profile. Taken together, this positions Enel Chile as a unique, sustainable and value-driven utility focused on optimizing risk return while maximizing long-term value creation.

This concludes my remarks. Thank you very much for your attention. I will now hand the call back to Isabela, who will guide us through the Q&A session.

We will now move to the Q&A session. Questions via the webcast chat. The Q&A session is open. Gianluca, we are receiving several questions regarding gas from several analysts so I'll go through the first one. The first one is about gas supply volumes and indexation. So then I say that he has a question regarding your gas contracts. In light of the current geopolitical tension, how much gas do you have secured for this year? How much of it comes from Argentina versus LNG? He's also trying to understand the timing of the indexation. Do you still need to lock in prices or are this year's volumes already fully contracted?

Okay. For this year, the large majority of our current gas needs are already secured through from Argentina gas contracts and LNG contracts. On the other side, G&A is contracted at fixed and energy contracts are indexed to Henry Hub and Brent. However, most of the exposure has been already secured with PPA index to commodities and financial products.

Okay. The second question is related to cost risk and still Argentina gas contracts. Do you see any cost risk under the current situation? The analyst is saying that his understanding is that you have a firm gas contract with Argentina, but now are those prices indexed? Are they volatile and linked to global benchmarks or are they mostly defined?

Yes, very clear question. So at this stage, we don't see a material cost risk. Our firm gas supply agreements with Argentina have a 6-month term and are structured at fixed price.

Okay. So the third one is related now to the spot prices. So beyond the specific impact on your company, could this scenario of the conflict deteriorate the Chilean spot market in the sense that higher thermal dispatch could drive spot prices up potentially affecting players who are short in the energy market?

Okay. From a system perspective, geopolitical uncertainty can indeed influence expectation for higher spot prices especially in scenarios where thermal dispatch increases. But in our case, let me say that the impact is limited due to our contracted gas supply and our commercial balance. But let me say also that it is reasonable to expect upward pressure if the generation becomes more prominent. And however, at the moment we are not seeing high pressure over [indiscernible] to expect an important impact on Chilean energy spot prices.

Okay. Now still on gas, but now the question comes from Tomas Gonzalez. So he has one question still on the current Middle East conflict. Given your reliance on natural gas for thermal generation, how could the current geopolitical tensions in the Middle East affect your contracted energy supply? Especially do you foresee potential shortages or price increase? And if so, would you be able to increase assets to Argentinian gas, particularly in the event of dry season? Additional, should these conditions materialize, would gas sales be expected to decrease as a result?

Okay. Tomas, thank you for your question. So at this stage, we are not seeing any material impact on our operations [indiscernible] including the geopolitical tension between Iran and USA. Our thermal generation relies primarily on Argentina gas and our supply is supported by [indiscernible] and also aging strategy that also we have the mitigated short-term utilities in international markets. What I can say that our exposure to global gas price is relatively limited considering the current overall supply mix supply. While we continue to [indiscernible] the global energy environment including also potential inflationary effects that can begin from this situation. Current market conditions do not indicate any significant impact for us at this point.

Okay. Now moving on the questions now from [indiscernible] from BC. He has 3 questions. I will do the 3 and then Simone and Gianluca. So the first one, we noticed lower energy purchase cost per megawatt hour this quarter. Should we expect this trend to continue into the next quarters? The second one is in the distribution segment, we saw strong top line increase year-over-year mainly driven by prior year price resetments. Understanding this is one-off, could you provide more color on that? And the last question is do you have any update regarding the concession revocation process in the distribution segment, Simone?

Let me start from the marginal cost of energy purchase. Let me comment that 2025 was a beneficial year because [indiscernible] such as communication with distribution lines [indiscernible]. Also this impacted in the marginal cost of energy. [indiscernible] We are expecting in a more standard way to keep growing meaningfully in this part of the price reduction. And this is also something structural for the next 3 years.

And coming to the second question of distribution. The fact that [indiscernible] which comparing 2025 with 2024, it's not just a one-off effect [indiscernible]. So we had a basically adjustment [indiscernible] climate event. And talking about 2025, in general we have a [indiscernible] regulatory renumeration caused regulatory cycle increased the renumeration for the company. On the other side, there were specific one-off effect that was basically adjustment from the past some mechanism to adjust the prices all over the country that have a positive impact on Enel. And so considering an impact of event of 2024 of around $60 million in 2024 and considering an impact of one-off effect for more than $30 million in 2025, we can explain the differences in the performance in the 2 year. And I think that Gianluca will answer to the concession question.

Okay. To follow up the concession. To this date, we haven't been notified of any Ministry of Energy proceeding to address or discuss the potential for future concession granted to our distribution. What we have learned from the press is that the Ministry of Energy is preparing a technical report on the energy distribution concession. And so according to the authorities, this study could take 6 to 18 months and once it is ready, it will be delivered to the President of the Republic for review. So the company has consistently made itself available to the authorities and has provided all the information requested. So this matter is being closely monitored and we will exercise the legal right to defend our position.

Okay. Let's move on. We are receiving more questions here. So the following question is from Ignacio Sabelle from Itau. Congrats on the results. So the first question, Simone. It looks like the CapEx per megawatt is lower in comparison to the last plan in terms of dollars per megawatt probably because of high mix of BESS. Could you provide us color on the trend of BESS unitary CapEx? Could you also increase the hours duration in the current projects compared to the last plan if there is lower CapEx? So this is the first one, Simone, and then I move on to the others.

So let me give some color about which are our future investment in the plan. We have 2 waves of BESS. The first wave was already launched BESS for more or less 450 megawatts and then we have a second wave for more or less the same amount that has to be launched. The first wave will be around 2027 and the second wave in 2028. And then we have also some new wind capacity to be built. The [indiscernible] which you are referring is the mix of the technology and you are right that the large amount of BESS takes this number a little bit lower compared to the previous plan.

But also the BESS price is going lower, the price curve is a decreasing curve. And so more or less our new BESS will cost something between $0.8 million and $0.9 million with more or less $1 million that was in the previous plan. Which kind of BESS we are going to build in the first wave, we are talking about 4 hour BESS and in the second wave, we have BESS starting from 4.5 to 6 hours. So we are also evolving in the technology. Talking about the new wind power plants, the cost is higher clearly. It's around 1.2 megawatt, 1.3 megawatt.

Okay. So let me check here. The second question also from Ignacio is. I know that CapEx has been increased by roughly 25% in comparison to the last plan figures. But how should we think of dividend payout? Could we see the 70% for example would be an opportunity to increase the payout that's currently 50% minimum?

Okay. So Enel likes to give value to our shareholders increasing the value of the company so investing in the company and giving value through the dividends and also trying to maintain a very solid financial position, which is our policy in terms of dividends that we are confirming from the past is to distribute at least, at least is the word, 50% of our net income. And so we have confirmed this policy and in the plan the calculation is made considering 50% clear. If in future we will not found an opportunity to increase the value of the company through direct investment, we can also think to improve the dividend in line with the policy. But in this moment, the plan is set with 50%.

So I will move on to the following question from Andrew McCarthy from LarrainVial. He has 2 questions. So the first one is could you provide more details about how you reach 11.9 terawatt hour of hydro production by 2028?

So which is the mechanism that we use to project the production of hydropower plant. We have statistical models that are based on the historical trend looking at the last 10, 15 years and then collect other variable on the forecast, the weather forecast and project a number. Really a curve and we choose to put the plan in the middle of the curve so with probability of 50% this level of [indiscernible]. And so this is the output of our model. Let me comment that we have also the increase of productivity of such plants because we keep on investing in improving the performance of our hydro fleet.

Okay. So from Andrew McCarthy, we have the second one, Simone. The second one is in the generation business, are there PPA auctions opportunities that could eventually allow the company to grow sales beyond 32 terawatt hours by 2028?

So talking about our sales strategy, we do not sell energy as a target. We try to maximize the margin and the EBITDA, but also keeping under control the risk. So going to your question, yes, there are opportunity in the market and yes, is it possible to increase the sales beyond 32 terawatt and we are studying this opportunity. We are working actively on the market. But then we have to match the buy side and the production with the sales. So we will grab this opportunity if these are accretive opportunities and at the same time if you can manage the risk without exposing too much the company to the market risk.

Okay. Now we have another one that is coming from Fernan Gonzalez from BTG. He has 2 questions so I go for the first one. Could you please share more details of the new capacity like the location, expected COD and if it will be added to existing assets or not?

Okay. Thank you for your question. So majority of our new capacity is focused on retrofit of existing plants in north of Chile. And so during the 2025, we focused on engineering the new [indiscernible] and project [indiscernible] and with the regulatory framework in place, we are starting on construction in 2026 and COD expected in 2027. Our updated strategy plan also includes BESS investments scheduled for 2027 ad 2028 as we show in my presentation. And so we are capable to enforce storage infrastructure [indiscernible] to our portfolio going forward [indiscernible] for 2028.

Okay. So the second question from Fernan is about distribution. Now he's saying that in distribution, investment in smart meters and remote control CapEx does not seem to be part of the model company and therefore, it may not be remunerated. Is this correct or do you have preagreements with authorities on that regard?

Okay. First of all, smart meters are a key for the energy transition and energy system in general and currently we don't have a mandatory process in order to advance deployment. In Chile, investments in smart meters and remote control equipment are not automatically included in regulated company. So effectively they are not automatically renumerated. But the cost [indiscernible] depends on whether the Commission of National Energy, CNE, recognizes those assets in tariff setting [indiscernible] or through specific regulatory approvals. So there are no standing agreements guaranteeing remuneration. Inclusion must be justified as essential and aligned with the quality of service improvement in this period of the plan.

Okay. Now we are going to a new question from [indiscernible] from Bales Capital. So he's asking that regarding the expiration of the PPAs, could you please elaborate on the strategy the company is implementing as these contracts roll off in light of your recent participating in the regulated auction securing 3.360 gigawatt hour per year for 2027-2030 period and the almost 1.5 terawatt hour for 2026. How should we think about your contracting strategy going forward? Additionally, could you provide more color on the average PPA price levels embedded in these awards and what price range we should assume for future recontracting, Simone?

Thank you for the question. As we have talked, our [indiscernible] strategy is something that we adjust to the market. So we look to the free customer and also to regulated customers. As you know, our portfolio has lost in the last years mainly regulated customer and so we look at the new auctions like a possible opportunity. Really this was an opportunity and why Enel is competitive in this kind of contract because we have a product portfolio that is not just diversified in terms of technology, but also in terms of geographical distribution. So we can enter in this kind of contract without taking high risks. And so this is the reason why we participate to the auction, we bid and finally, the bid was at a good price considering our risks. So this is something about how we are elaborating our strategy. We are looking at free and regulated market where the better opportunity will arise.

Now he has a second question. The second question is in the presentation, it seems that you view wind as the main technology that could lead growth in the following years. In which region of the country do you think is more likely to see higher wind penetration? And do you see change in cost that could encourage more investments in wind farms?

Okay. So really the main investment are in BESS technology. Why? Because this is the leading technology in this very moment. It's a technology that can help the Chilean systems with this activity of energy shifting. So be successful in moving energy from the day in which we have an excess of production to the night in which we have an excess of demand. Talking about wind, also wind technology is very interesting one with the production that is more likely a baseload production. And we are thinking to invest in the north where we find some good opportunities. In any case, the new wind power plants will arrive in the last part of the plan.

We have more here. So the next one is from [indiscernible]. He's asking on PPA on gas, Gianluca, what is your expectation on PPA prices indexes to commodities, Brent Henry Hub, given the actual geopolitical tension. Do you have an estimate of an impact on average realized PPA prices?

Okay. Thank you for your question. Given the current geopolitical tensions, PPA price should increase, yes. But keep in mind that our main source of PPA sales index to commodities are the distribution company contract, which looks at 6 months windows for updating the price. And so therefore, at the moment, it is too soon maybe to give an estimation on eventual upside related to the current geopolitical tension and too soon to give [indiscernible] the question. So we are seeing the situation. We are monitoring it. But what I can confirm that obviously it's very soon to give an estimation for eventual upside in this moment. The current geopolitical is very dynamic in this moment, but this is our opinion at this moment.

We have a question coming from [indiscernible] from Scotia Bank. He's asking given the parent company stated focus on Tier 1 market, how do you see this affecting your capital allocation and asset and portfolio strategy at Enel Chile over the next 12 to 24 months?

Okay. So talking about the [indiscernible] that we will receive from the group. I think that the [indiscernible] Enel Chile is quite strong in the group. And so we are projecting a strong plan in terms of investment and we are sure to keep on adding like in the past the support to the group. As you know, the strategy of Enel in Chile is to keep on working with a fully integrated group in all the element of the chain of value.

Okay. So also Jay, he has another question now talking about data centers. Given the strong outlook for data center driven load growth, how is the company thinking about accelerating its CapEx plan to capture this opportunity? Are there constraints or strategic considerations that limit faster investment today? Gianluca?

Yes. Thank you for your question. It's an important topic that we are working on. We have played a significant role in developing the necessary infrastructure, particularly in terms of capacity to enable the installation of data center in country. This includes providing power capacity, strengthening and adding redundancy to network obviously to ensure operational continuity and supply energy for their operations. In response to the sector's evolving needs, we are proactively identifying future consumption requirements and working closely with the data center industry to [indiscernible] develop power infrastructure and energy projects that support their growth. But to fully unlock this potential, a few elements are key.

Let me say first, [indiscernible] scalable to electrical capacity for large projects. Second, permitting processes that are clear and predictable. Third, firm and competitive renewable energy supported by storage and transmission development. So in addition, having a data center this close to a station generation, strong fiber redundancy and clear rules for direct renewable supply will attract new investment. So to finalize this very interesting question, Chile has a strong starting point and [indiscernible] progress in these areas. It can become a leading location for data center in the region.

Okay. Now the other one is for you, Simone, coming from Tomas Gonsalez regarding refinance. So he's asking do you foresee any opportunity to refinance expensive debt at better rates in the short term? And by that means reduce financial cost over the years?

So [indiscernible] most important operation that we have to do is the refinancing of the [indiscernible] bond. We have a portfolio with a very competitive interest rate around 5% and if you look in this moment to the market, there are not opportunity in the very, very short term to enhance the performance of our portfolio that is well below the market [indiscernible]. But we are keep on looking at these opportunities. We are always looking at possibility to anticipate the deadline of our debt and as soon as we find the right moment, for sure we will analyze the possibility to anticipate the future impact.

Okay. We have the last question of the day so coming from Andrew McCarthy also on debt. Could recently higher TTF gas price offer an opportunity for attractive gas trading opportunities for Enel Chile? Gianluca?

Yes. Thank you for your question. So we are evaluating the current market opportunities to maximize our results always taking to account the generation needs to proper supply our energy clients. Indeed, the TTF price are increasing, but yet are far away from the previous crisis of 2022 in which TTF reached up to USD 80 per million mega Btu. So it's a scenario that concern but not in comparison with 2022.

Okay. As there are more questions, I would like to conclude our conference call today. Thank you all for your presence. And please note that the Investor Relations team remains available to address any follow-up questions you may have. Have a great week. Thank you.

Thank you.

And with that, ladies and gentlemen, we conclude our conference. Thank you for participating and you may now disconnect.

Good morning, ladies and gentlemen, and welcome to Enel Chile Third Quarter and 9 Months 2025 Results Conference Call. My name is Carmen, and I will be your operator for today.

During this conference call, we may make statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect only our current expectations, are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from anticipated in the forward-looking statements as a result of various factors. These factors are described in Enel Chile's press release reporting its third quarter and 9 months 2025 results.

The presentation accompanying this conference call and Enel Chile's annual report on Form 20-F, included under risk factors. You may access our third quarter and 9 months 2025 results press release and presentation on our website at www.enel.cl, and our 20-F on the SEC's website at www.sec.gov. Readers are cautioned not to place undue 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 Ms. Isabela Klemes, Head of Investor Relations of Enel Chile. Please proceed.

Good morning, and welcome to Enel Chile's 2025 Third Quarter and 9 Months Results Presentation. We greatly appreciate you taking the time to joining us today. My name is Isabela Klemes, and I'm the Head of Investor Relations. Joining me this morning is our CFO, Simone Conticelli. Our presentation and financial related information are available on our website, www.enel.cl in the Investors section as well as through our app investors. In addition, a replay of the call will be soon available. At the end of this presentation, there will be an opportunity to ask questions via webcast chat through the link Ask a Question. [Operator Instructions] Simone will kick off the presentation by covering key highlights of the period, our portfolio management actions, providing us updates on the regulatory context and an overview of our business economic and financial performance for the period.

Thank you all for your attention. And now let me hand over the call to Simone. Simone?

Thank you, Isabela. Good morning, and thank you for your participation. Let's start the presentation with our main highlights of the period.

Let's begin with portfolio management. We observed a high-level performance of our thermal generation fleet, which helped offset lower hydrological conditions during the quarter. This outcome reflects our ability to adapt to evolving market dynamics and maintain operational stability. In addition, our gas optimization activities continued to support our margin, reinforcing their strategic role in balancing our portfolio and mitigating exposure to spot market volatility.

On the distribution side, we achieved successful implementation of the comprehensive winter plan aimed at strengthening grid's resilience and improving service continuity under challenging climate condition. Indeed, our performance in the period was one of the best in Chile.

The winter plan included the deployment of emergency crews strategically positioned in high-risk areas, extensive vegetation management action and the installation of new telecontrol units to reduce restoration time. Additionally, targeted measures were implemented to support vulnerable customers, ensuring continuity of supply during adverse weather events.

Now let's move on the Chilean regulatory context. With reference to the VAD 2024-2028, a key milestone was the publication in the last weeks of the consultant report followed by the preliminary regulatory technical report. I will give you more details about it. Furthermore, in October, was also released the preliminary regulated energy tariff report for the first half 2026. Now the generation association, of which Enel is a part of, is working with authorities regarding the outcomes of the report. Looking ahead, 2 regulated energy auctions are scheduled for the fourth quarter 2025.

Let's now turn to business profitability. We closed the first 9 months of 2025 with a stable EBITDA compared to the previous year despite the difficult context and significantly lower hydrology, demonstrating the resilience of our operations. Our FFO remained positive, driven by the recovery of $261 million of receivables generated by the PEC mechanism. This inflow significantly strengthened our cash position for the year. As a result, we maintained a strong liquidity position, enabling us to support our development plan and to mitigate operational headwind associated with the market and climate uncertainties.

In the next slide, we will take a closer look at these topics to provide further insight, but let me anticipate that these achievements demonstrate our focus on operational excellence and sustainable growth. We remain committed to delivering long-term value to our shareholders while advancing in the energy transition and strengthening the resilience of our business.

And now let's move to Slide 4 to talk about the energy market situation, especially regarding hydrology and gas opportunities. On the left side of the slide, you can see our hydro production over the last 10 years. For 2025, we set our target at 10.7 terawatt hour based on the last 10-year average. Although 2025 has been a particularly dry year, our hydro production has remained in line with our strategic plan. This was possible, thanks to the flexibility of our hydro plants with access to hydrological basins. For this reason, we are keeping our hydrology guidance unchanged. To manage this dry scenario, we relied also on the flexible and competitive thermal fleet, supported by a strong and diversified LNG and Argentine gas supply. This helped us respond quickly to market needs and reduce exposure to hydro volatility. As a result, we increased thermal production, used competitive gas and seized favorable trading opportunity, adding $74 million in margin during the first 9 months of 2025.

Regarding gas business, in October, we completed a gas sales to Europe with margins similar to those recorded in the second quarter 2025. Looking ahead to 2026, we are evaluating options to secure competitive gas from Argentina through firm contracts in line with the past year strategy.

And now moving on to Slide 5, let's review our generation portfolio and energy balance. During the first 9 months of 2025, net production decreased by 9% compared to the same period of 2024. This decline was driven by lower hydro dispatch during the first 9 months of 2025, reduction in renewable energy production due to the maintenance of 2 solar plants, higher curtailment levels also caused by transmission line limitations. These effects were partially offset by higher contribution from the efficient CCGT. The same factors impacted the third quarter generation that amounted to 5.4 terawatt hour, lower by 1.1 terawatt hour versus the same period of 2024.

Energy sales reached 22.7 terawatt hour, mainly due to the lower sales to regulated customers following the expiration of regulated contracts. The regulated contracts volume reduction is also the main cause for the decrease of the third quarter sale from 8.4 to 7.6 terawatt hour.

And now I would like to take a moment to review an important milestone in the resilient program of our distribution business. We are pleased to share that we successfully implemented a comprehensive winter plan aimed at strengthening the stability of our grids and guaranteeing service continuity during the most challenging months of the year, particularly for our most vulnerable customers. First of all, we deployed 376 emergency crew across our service territory. These teams were mobilized to respond to outages and restore power.

One of the most impactful initiatives was the execution of more than 115,000 tree trimming actions, which significantly reduced feeder failures in areas exposed to severe weather. We also modernized the grids, installing new telecontrol unit. This helped us to isolate faults and reducing service interruption time. In parallel, we implemented several infrastructure upgrade that enhanced network reliability and quality of service for more than 193,000 customers.

Supporting vulnerable customers remain a priority for Enel, so we assisted more than 3,000 electro-dependents, ensuring continuity of supply through targeted measures. Among them, more than 2,000 were equipped with digital meters, while almost 2,900 receive makeup power solutions, such as generators or battery systems.

Finally, we strengthened the collaboration with municipalities to improve coordination during extreme weather events. This joint approach has enhanced emergency response capabilities. All these efforts translated into tangible improvements in the performance of our distribution network with results that clearly demonstrate the effectiveness of the winter plan.

And now let's take a look at Slide 7, where we highlight key updates on the energy regulatory context. In 2025, we saw key changes in the regulatory framework. The distribution cycle for 2024, 2028 is under development. In September, the consultant final report was published. Then in October, the CNE released its preliminary technical report with changes in maintenance and technical standards. Company have until the 10th of November to submit comments. The final report is expected in 2026. In parallel, we are currently awaiting settlement of outstanding debt related to the PAD decree for 2020, 2024, published in April 2025, that is expected to be settled in 2026.

Passing to generation business on the 4th of October -- on the 14th of October, the CNE published the preliminary technical report for the first half of 2026. It includes a correction related to the inflection effects. We are reviewing the impact and waiting for the final report. Passing to the stabilization mechanism as of September 2025, we have $149 million PEC 1 receivable to be fully recovered by the end of 2027.

Going to other relevant topics in August came into effect a resolution on BESS remuneration that authorize the BESS to provide ancillary services. In the last week, changes have been introduced in 2025 regulated auctions, increasing the volume of the 2027-2030 auction from 1.7 to 3.4 terawatt hour per year. The offer deadline is now the 14th of November, launching a 1.5 terawatt hour per year short-term auction for 2026. The offer deadline is the 2nd of December.

Finally, regarding subsidies, the third electricity subsidy round run from the 3rd of June to the 15th of July, covering the period from July to December 2025. Around 341,000 annual distribution customer benefit of it. A bid to expand the subsidy is still pending in the Congress.

And now I will start reviewing the highlights of our financial performance over the period. Before we review the results, a quick reminder. As of January 1, 2025, Enel Chile changed its functional currency from Chilean pesos to U.S. dollars. For comparison, 9 months and third quarter 2024 figure are short using the average exchange rate of these periods. I will enter into details of our financial and economic performance in the next slide.

So let's move to the next slide to look at the progress made on CapEx. Our total CapEx reached $245 million during the first 9 months of the year, maintaining a focus on grids and power plant fleet performance. Let's review the allocation in more detail. 41% or $101 million was directed towards grids investments. 31% or $76 million supported thermal power projects. 27% or $67 million was invested in renewable and storage.

Regarding grids, the focus remain on the resilience program to strengthen the grids and ensure service continuity under adverse weather conditions. In thermal segment, the priority is the maintenance and performance announcement of the power plant fleet. In the renewable segment, we have centered our efforts on finalizing the PMGD program, enhancing hydro facility performance and maintaining fleet liability.

Now let's move on to the breakdown by nature. Asset management CapEx totaled $139 million, accounting for 57% of total CapEx, mostly used for the maintenance of Atacama Quintero and San Isidro CCGT, the improvement of renewables fleet availability and corrective maintenance and digitalization of grids.

Development CapEx was $60 million, mainly driven by investment for grid reliability enhancement, digital methods programs and telecontrol deployment and for the completion of 2024 investment program for PMGDs. The 2025 development CapEx for battery-related project will be recorded starting from the next quarter.

Finally, customer CapEx totaled $46 million, mainly invested in low and medium voltage connection projects and initiatives to support load increase.

Let's now turn to the next slide, which provides a closer look at our EBITDA performance. During the last quarter, our EBITDA totaled $345 million, representing a decrease of $63 million compared to the same period of 2024, mainly explained by the following factors. Starting with the generation business, we recorded a decrease of $89 million in PPA sales, mostly due to the termination of some high-price regulated contracts that impacted on volumes and average price of regulated portfolio, partially offset by the negative impact of exchange rate hedges recorded in 2024.

Regarding sourcing, its contribution remained in line with the same period in 2024. This result was mainly achieved, thanks to our optimized sourcing strategy and the issuance provision, mainly coming from GasAtacama, which effectively offset higher cost in the energy spot market mainly due to the higher purchase volume. Gas trading contributed positively with a $5 million margin increase, mainly fueled by expanded trading activity in the third quarter of 2025.

Turning to grids. We recorded a positive impact of $17 million, mainly driven by regulatory provision reflecting the settlement adjustment for the previous year and higher OpEx recorded in the third quarter of 2024 due to the extreme weather events that occurred in May and August. These effects were partially offset by the increase of OEM expenses, mainly associated with the implementation of the comprehensive winter plan.

And now let's move on to the next slide to review the main impacts on EBITDA during the 9 months period. Our EBITDA reached $1,004 million, remaining flat compared to the same period of 2024. Starting with the generation business, we recorded a decrease of $244 million in PPA sales, mainly due to the termination of high-price regulated contracts, partially offset by the negative impact of exchange rate hedges recorded in 2024 and the positive price effect due to the indexation of the free market contracts.

Regarding sourcing, we recorded a positive effect of $192 million despite the $34 million negative impact related to the transmission line restriction following the February blackout and the additional second quarter issues. The result was obtained, thanks to lower spot and third parties energy purchases costs, energy settlements from previous periods, already anticipated insurance provision and finally, lower transmission costs.

In the first 9 months of 2025, gas margin contributed for $27 million, also thanks to the increase of the gas trading activity versus the same period in 2024. Passing to grids, we recorded a positive impact, primarily driven by the provision reflecting the higher tariff expected for the 2024-2028 regulatory period and tariff indexation, some settlement adjustment from the previous year, higher OpEx recorded in the period 2024, mainly due to the extreme weather events, partially offset by the increase of OEM expenses, mainly associated with the implementation of the comprehensive winter plan.

We also recorded an increase of generation costs due to the new developed capacity and the maintenance activities. Finally, in 2025, specifically in the second quarter, we recorded the personnel cost one-off effect, mainly for the incentivized early retirement plan to support the company organization aimed at improving internal skills and performance.

And so now let's move on to the next slide, where we will review the net income evolution. Our 9-month 2025 net income reached $352 million, a 21% decrease compared to the last year's figure, mainly explained by higher depreciation, amortization, impairment and bad debt expenses for $84 million, mainly due to the commissioning of new renewable capacity amounting to $32 million, the impairment related to our decision not to proceed with the new PMGD solar project initially planned for development in this area. And finally, the $12 million increase of grid's bad debt provision, mainly due to the higher billing resulting from tariff increase and long overdue customer debt.

Regarding financial results, we recorded a negative variation of $38 million, mostly explained by the lower capitalized expenses on renewable projects by $61 million, partially offset by lower financial expenses for $29 million resulting from lower average outstanding debt and lower average interest rate. The latter was partially offset by a $20 million reduction in corporate income tax expense, mostly explained by lower results.

Focusing on the quarter, net income decreased by $74 million, mainly due to a $63 million decrease in EBITDA, a $29 million increase in depreciation, amortization and bad debt, primarily due to the operation of new renewable capacity and an $11 million increase in financial results, mainly due to the lower capitalized expenses on renewable projects. The latter was partially offset by a $23 million reduction in corporate income tax expenses mostly explained by lower results of the period.

And now let's move on to the FFO analysis on the next slide. Let's analyze the FFO composition for the first 9 months of 2025 and the main effect compared to the same period in 2024. Our FFO reached $615 million, representing an improvement of $248 million compared to the previous year. This is due to the following factors. First, EBITDA totaled $1 billion, remaining flat compared to the same period last year, as previously explained. Second, the recovery of PEC receivable in 2025 contributed for $285 million, mainly thanks to factoring executed in April 2025 related to PEC 2, 3 and recovery to the tariff of $31 million of PEC 1 receivable. It is worth mentioning that we offset a positive FFO variation of $248 million versus the 9 months 2024, thanks to the end of accumulation of PEC receivable started in October 2024.

Third, the increase of net working capital impacted for $329 million, mainly due to the 2024 development CapEx payment, lower collection in our distribution business and other seasonality effect. The increase was higher by $255 million versus previous year, mainly due to the negative effect of energy payment scheduling and the voluntary compensation paid in 2025 regarding the extreme climate event from May and August 2024. These effects were partially offset by lower CapEx payments related to renewable capacity.

Fourth, the income taxes impacted on FFO amounted to $231 million, mainly due to the tax payment in the generation business. Income taxes paid in the 9-month 2025 were higher by $63 million compared to the 9 months 2024. This difference is mainly due to the increased tax payment in the generation business, driven by both higher results and higher monthly payment tax rates.

Finally, financial expenses were $130 million, mostly due to the debt related costs. This represents a reduction of $52 million compared to the 9 months 2024, mainly driven by a lower average debt this year.

And now let's take a look at our liquidity and leverage position. Our gross debt is $3.9 billion at the end of September 2025, in line with the gross debt as of December 2024. The average terms of our debt maturities decreased from 6.2 years as of December 2024 to 5.5 years as of September 2025, and the portion at the fixed rate is 87% of total debt.

The average cost of our debt reached 4.8% as of September 2025, decreasing from 5.0% in December 2024, in line with our efforts to optimize the financial costs.

Regarding liquidity, we are in a comfortable position to support our capital needs for the upcoming months and cope with the next year maturities. As of September 2025, we have available committed credit lines for $640 million and cash equivalent for $373 million.

And now I would like to share the following closing remarks. In the coming months, significant regulatory updates are expected that will clarify tariffs and market mechanisms. These represent an essential step to refine our long-term strategy and to assure that our investment decisions remain aligned with regulatory developments. We are implementing proactive initiatives to address portfolio dynamics and climate challenges. This includes action to strengthen our generation and distribution businesses, improve risk management and enhance our ability to respond to extreme weather events. The measures are designed to safeguard service continuity and maintain system stability.

Our solid financial position and flexible business model allow us to follow with our business plan, even through market uncertainties, while continuing to invest in strategic renewable and BESS project and deliver sustainable returns for our shareholders.

Finally, we are preparing for our 2026 Investor Day scheduled for the first quarter 2026, where we will share a comprehensive view of our strategy and the actions that will drive long-term value creation.

And now let me hand it over to Isabela for the Q&A session.

Thank you, Simone. Now let's move on to Q&A session. We will be taking questions via chat through the webcast. The Q&A session is now open. Okay.

So Simone, the first question is coming from Rodrigo Mora from Moneda. Rodrigo has 4 questions, so I will be talking one by one, okay? So the first one is, what is the amount that Enel Chile must return to customers due to the miscalculation of the CNE included in the first half 2026 PNP report?

Okay. Thank you, Rodrigo. Just to give some context. So in the first half of October, the CNE explained that they have changed the formula for the calculation of the PNP. And so this change in the formula will have some impact. We have calculated the impact for Enel in an amount that is between $40 million and $45 million. So we have to expect a negative provision in terms of mainly financial costs. So the impact will be mainly in the financial items. And -- but in your question, you talked about customer, but in any case, just comment that the customers were impacted just for a small amount because just the 2% of the total amount of the changes was transferred to customer in the tariff. So this amount will be accrual by Enel in 2025, and then we will pay back. In this moment, the process is not so clear. But in any case, we expect in the first half of 2026. But the amount, we will have not impacted directly for the total value of the customer.

Okay. Thank you, Simone. So the second question now is on Enel distribution. So what is the amount on to Enel's distribution Chile in connection to the VAD 2000, 2025, please?

So talking about the remuneration period of 2020, 2024, we are really not finalizing the last steps of the process. So the amount was ready to be defined. And what we are waiting is that the sector will say when we have to receive back the missing part. And the amount, in this case, is around $50 million, $55 million. There are 2 possibilities. If you want to be prudent, you can imagine that this the cashback can start middle of 2026, even if I remember interview of the new Minister of Energy that say the process can also be faster and start earlier.

Okay. Thank you, Simone. So now let me check here. We have the third question. So the third question of Rodrigo now is on generation side on the LNG strategy. So could you please explain about your strategy regarding LNG and Argentina gas firm or interruptible? For the year 2026, how many ships do you plan to buy?

So as you know, for us, the gas business is very important business because we need gas for our thermal power plant, but also because we find during the year some creative opportunities to make margin to our gas contract. We have basically a long-term gas contract for LNG. And more or less, the volume for this contract for any addition in more than 32 teraBtu per year. And so in 2026, we'll keep on using this contract. In these very days, we are working -- we are negotiating Argentinian supplier to the new contract for Argentinian gas. And so in this moment, I cannot talk about this negotiation. The negotiation is ongoing as well and has not been finalized.

Okay. Thank you, Simone. Now the last question of Rodrigo is regarding CapEx also on generation business. Regarding CapEx for generation, could you please give us an update for 2025? And actually, we also received the same question from balance as well.

So very well. Talking about this year's CapEx, as you know, we follow the plan with one exception that was the CapEx for the development of the new system because we recorded a little delay for this project and it was due to strategic reason. I mean we have the new piece of regulation related to BESS. I mean the regulation for the participation of BESS in the ancillary service market. And then we keep on starting the evolution of the market and the penetration of the BESS in the Chilean production system. So we started a little bit late in the project.

And in the first 3 quarters, the amount of CapEx for this project was reduced compared to the expectation. But the projects have been already started are ongoing. And so you will see in the last quarter -- in total, talking about AGP and generation investment for more or less USD 150 million, USD 160 million. And a part of this investment will be the BESS, at least $50 million. And then we keep on growing also in investments on thermal fleet and how strategic is the thermal fleet. And of course, in case of low water in the system, our efficient CCGT plants are called to produce. And so we have to keep on these plans at the highest level of efficiency and performance.

Okay. Thank you. And we have a final one. Sorry, Rodrigo. We have 5 questions from Rodrigo Mora. So the last one is on distribution side, okay? On distribution, could you outline the measures being taken to address the increasing energy losses?

Okay. Talking about losses in energy, we have discussed the losses getting higher in the last 2 years, started from 2023. And so in this moment, the percentage of losses is a bit higher than 6%, which is the reason -- can be many reasons, but the most important reason is the increase in the target. So the final customer. And so a little bit a change in EBIT related also to this increase in tariff.

What we are doing? From one side, we are increasing the activity to recover these losses. And so we have recovered more than expected in the initial planning related to losses. And on the other side, we are making other action, for example, launching flexible payment plans for the customers that want to pay the new bill. We have a new smarter special tool. We work on formulas to localize where the losses are originated and we can intervene. And finally, we are working with the regulator to try to find changes also in the regulation that can help to contain this phenomenon.

Okay. Thank you, Simone. Now move on. We have questions from Javier Suarez from Mediobanca. Thanks for the question. So the question is, is the company Enel Chile confirm its latest guidance?

So the answer is simple, it's yes, but just some context. This was a very tough year in terms of hydrological situation. So finally, the season was drier than expected. But in any case, we show our flexibility as a company. We leverage on our very profitable gas contract. We use the flexible and efficient CCGT. And so we have those effects. So we maintain high production. Also our hydropower plant can use reservoir. And so also the production for Enel did not decrease so much. And given all this action and the flexibility the company built in the past year, we can react to this adverse climate conditions and achieve -- we can confirm the results for the year.

Okay. Thank you, Simone. So move on. The next one is also from Javier Suarez, Mediobanca. It's about the FFO. So could you explain the dynamics of FFO during the 9 months of this year? And your expectation by the year-end?

Okay. Talking about the FFO, talking about our business, the FFO usually is concentrated in the second half of the year and particularly in the last quarter. And the main reason is that EBITDA is higher in this period and so on. This year, in the first 9 months, and this week, we had a very high level of FFO. And this was -- thanks to the not ordinarily cash-in from tech regulatory process. So we cash in around USD 300 million recovering cash credit from the past.

Looking ahead, the cash flow from ordinary business will be higher compared to the first months in the last period. And also, we will have more efficient management of the net working capital because in the last part of the year, the CapEx are focused in the last part of the year. So also the net working capital can be managed in a more efficient way. And so we expect to improve the performance of FFO in this last quarter, which is more or less the dynamic.

Okay. Perfect. So now the next question is coming from Fernan Gonzalez from BTG Pactual. So Fernan is talking about the BESS, not the storage that we are implementing. So I will read here. I saw that BESS Las Salinas, 200 megawatts and BESS Acebache, 58 megawatts were declared under construction at the CNE. So these projects involve additional solar capacity or just the energy storage. There are still an additional 200 megawatts of BESS capacity to meet your announcement plan. Will this be added to exist in solar PV in the North?

Yes. So talking about the strategy on BESS, we have launched 3 projects this year in line with what was expected in the plan. And these projects are hybrid projects. So we are going to implement BESS system in solar power plant in the North.

And while we do this, in general, the BESS can be profitable also like a stand-alone device. But the profitability is higher if you use the BESS system to [ improvise ] our power plants and why? Because the project in faster. You need less environmental document to be produced, considering that you are building the BESS in your plant and also we have some savings in terms of cost and electrical infrastructure. And so I think that I have answered the question. At this moment, we are not increasing the solar capacity. You are just equalizing solar project.

Okay. So let me check here. So we have another one from [ Thomas Peruchi ], Balanced Capital. Well, part of the question was already answered. So I'll just keep the one that wasn't here. So thank you for the presentation. And he has one question.

If I'm not mistaken, you had a target of -- for 2025 of $500 million for expansion projects, mainly relating to batteries to storage. How has that changed by now, given that you are expecting a resolution on ancillary services before moving forward? And was the resolution in line with your expectations? Do you think we will be enough to unlock high investment in storage?

Okay. So in our current power plant, we put more or less 600 megawatts of new capacity. And you are right, 450 average in BESS projects. This well project should have been launched at the beginning of the year and were launched during the second launch. And so you can expect a movement of the COD. The recent COD was in 2026 in the second half. And then the new COD will be in 2027, and this will have an impact. But in any case, we start from a fleet of around 9 gigawatts of production and so this change is not a huge change.

Talking about regulation. So in August, the 4th of August was largely in new regulation that say that BESS can participate in Chile service mark. It means that this is a very good news for the country because the BESS very means important element that can stabilize the system at a very low cost. And so usually because for the system, it is also reducing the cost for the participant.

In terms of revenues, it's not a huge increase, but it's in line with what we expected. Talking about the current BESS that we have, the BESS that we have already installed, it means that amount USD 5 million and USD 7 million per year. But in any case, it's an important step because a permit to meet the BESS project is little bit more profitable than considered in the beginning. And it means that they are profitable also imagining a higher penetration of BESS project.

Okay. Perfect. So we have the last question that is from Edward Palma from Itaú Asset. So the question is, do you have any news for unregulated PPA contracts?

In this moment, no, we don't have any news related to this stock.

Okay. Perfect. Let me just check if we have no more questions. Okay. As there are no further questions, we formally conclude our conference call. The Investor Relations team is at our disposal for any further inquiries. Many thanks for joining us, and have a great rest of the week. Thank you.

And ladies and gentlemen, this concludes our conference. Thank you for participating. You may now disconnect.