Annual Report 2017
www.iam.cl
Inversiones Aguas Metropolitanas 1 Annual Report 2017 1. 2017 Highlights 5. 2017 Financial Year Statistics and Indicators...... 4 Planning a Sustainable and...... 30 Index Financial Summary...... 4 Long-Term Management Operating Background Information...... 4 Comprehensive Water Cycle Management...... 31 2017 Revenue Distribution...... 5 Annual Investments ...... 35 Stock Exchange Performance...... 5 2017 Clients...... 36 Ebitda - Ebitda Margin...... 6 Workforce...... 37 2017 Investments...... 6 Safety Indices...... 38 Accident Rate...... 7 Environment...... 39
2. Letter from the Chairman 6. Financial Management Strength and Stability...... 41 3. The Company Risk Factors...... 42 Inversiones Aguas Metropolitanas, IAM...... 12 Main Suppliers...... 45 IAM’s History...... 13 Dividend Policy...... 46 IAM Management Milestones...... 15 2017 Distributable Profit...... 47 Ownership of the Company...... 16 Summary of distribution to shareholders...... 47 Board of Directors...... 18 Shares Transactions...... 48 Alternate Directors...... 20 The Administration...... 21 7. Corporate Governance Board of Directors...... 51 4. Company Operation Directors’ Committee ...... 54 The Company...... 23 Remuneration and Expenses...... 57 Operations...... 24 Other Corporate Governance Instances...... 60 Clients...... 26 Material Events...... 61 Our Coverage...... 27 Non-Regulated Companies...... 28 8. General Information Company Identification...... 63 Sanitation Regulation...... 64 Responsibility Statement...... 65
9. Financial Statements
Inversiones Aguas Metropolitanas 2 Annual Report 2017 2017 Highlights
Inversiones Aguas Metropolitanas 3 Annual Report 2017 2017 Highlights (2) 2017
2,107 123.8 575.0 554.3 484.3 100.00% 100.00% 2,259,245 2,259,245 2,205,940 Annual Report 2017 Annual Report 2016 122.3 479.0 569.2 549.5 2,033 98.40% 100.00% 100.00% 2,160,473 2,213,869 2015 121.8 472.7 1,953 562.2 542.9 98.40% 100.00% 100.00% 2,149,673 2,096,347 119.3 1,881 2014 473.7 558.6 540.5 98.40% 100.00% 1100.00% 2,045,634 2,096,999 119.1 2013 1,857 534.1 548.9 466.9 98.30% 100.00% 100.00% 1,999,419 2,039,298 , st Estimate from the Superintendence of Sanitation Services will Sanitation be published of the Superintendence from in 2018. Estimate As of December 31 December of As Total staff staff Total Total invoiced water (millions (millions water invoiced Total cubic meters) of collection sewage Invoiced cubic meters) of (millions Total sewage treatment treatment sewage Total Total potable water clients clients water potable Total clients sewerage Total Invoiced sewage treatment treatment sewage Invoiced of and disposal (millions cubic meters) system sewerage Invoiced of (millions interconnection cubic meters) Total potable water coverage coverage water potable Total coverage sewerage Total (2) OPERATING BACKGROUND INFORMATION FOR IAM’S SUBSIDIARIES FOR INFORMATION BACKGROUND OPERATING 4 2017 68,719 18,408 55,638 237,819 195,091 371,326 866,737 222,990 240,399 593,488 509,536 2,069,371 2016 17,161 17,161 49,225 49,225 74,289 74,289 873,274 873,274 369,155 212,350 223,334 235,459 190,400 190,400 492,245 492,245 589,683 2,044,462 2,044,462 2015 18,015 53,739 63,283 787,470 180,937 212,999 220,706 473,397 233,356 580,626 1,963,814 2014 58,711 47,085 47,085 20,282 20,282 177,518 171,488 362,362 360,391 202,001 202,001 577,634 763,838 206,460 440,856 440,856 1,879,381 2013 16,557 57,648 45,884 157,307 221,033 368,767 182,948 184,299 580,912 680,044 404,047 1,850,756
, st (1)
Operating income = Regular revenues – consumption of raw materials and secondary materials – personnel expenses – expenses – personnel materials secondary and materials raw of – consumption revenues income = Regular Operating depreciation and amortization – losses due to deterioration –other operating expenses. operating –other deterioration – losses due to and amortization depreciation Potable water revenue revenue water Potable revenue Sewage Other regulated revenue revenue regulated Other revenue Total (1) As of December 31 December of As (In Millions of Pesos) (In Millions of CONSOLIDATED FINANCIAL SUMMARY FINANCIAL CONSOLIDATED Net income for the period for income Net assets Total Short-term liabilities Short-term Operating income Operating Other non-regulated revenue revenue non-regulated Other Long-term liabilities Long-term interest Minority attributable Equity company controlling the to Inversiones Aguas Aguas Metropolitanas Inversiones
Indicators Statistics and and Statistics Note: All of the financial and operational information in this annual report in this annual information and operational the financial All of Note: IAM and its subsidiaries. of figures consolidated are 2017 REVENUE DISTRIBUTION STOCK EXCHANGE PERFORMANCE (1)
3.61% Other regulated revenue 10.92% IAM IPSA Non-regulated revenue
160%
150%
140%
130% 2017 Highlights 47.18% 120% Sewage 110%
100%
90%
80% 1/1/2017 7/1/2017 1/1/2016 7/1/2016 2/1/2017 5/1/2017 3/1/2017 8/1/2017 4/1/2017 6/1/2017 9/1/2017 2/1/2016 5/1/2016 3/1/2016 8/1/2016 4/1/2016 6/1/2016 9/1/2016 11/1/2017 11/1/2016 12/1/2017 10/1/2017 12/1/2016 10/1/2016
38.29% (1) Source: Santiago Stock Exchange. Base 100. Potable water
Inversiones Aguas Metropolitanas 5 Annual Report 2017 EBITDA - EBITDA MARGIN (2) (3) 2017 INVESTMENTS
EBITDA EBITDA Margin 0.43% 8.29% Non-regulated Other subsidiaries 18.99% activities Potable water production
310,000 100% 297,391 290,351 2017 Highlights 290,000 80% 281,440 61.32% 61.88% 37.78% Sewage 270,000 272,810 60% 59.45% treatment 58.99% 58.37% 247,669 250,000 40% 24.51% Potable water distribution 230,000 20%
220,000 0% 2013 2014 2015 2016 2017 10.00% Sewerage
(1) EBITDA: Operating income + depreciation for the accounting period + amortization of intangibles. (2 ) EBITDA Margin: Regular revenue – consumption of raw materials and secondary materials – personnel expenses – other operating expenses.
Inversiones Aguas Metropolitanas 6 Annual Report 2017 ACCIDENT RATE*
Aguas Andinas S.A. Aguas Manquehue
Aguas Cordillera S.A.
ESSAL S.A.
Non Regulated Subsidiaries
0.72 0 2017 0 1.08 0.22
1.1 0
2016 0 2017 Highlights 0.28 0.73
0.94 0 2015 0.86 1.56 1.01
1.14 10.53 2014 0.81 0.34 2.65
1.47 0 2013 3.89 1.34 1.08
0 2 4 6 8 10 12
* Accident Rate: Number of accidents with time lost / Average number of workers during the period
Inversiones Aguas Metropolitanas 7 Annual Report 2017 Letter from the Chairman
Inversiones Aguas Metropolitanas 8 Annual Report 2017 Letter from the Chairman Annual Report 2017 Annual Report Dear Shareholders: Dear Aguas Inversiones of Directors of Board the As Chairman of the Company’s you present to the honor S.A., I have Metropolitanas 2017. for and Financial Statements Annual Report the customers to a good service level by characterized was year The Aguas Andinas, Aguas Manquehue, Aguas Cordillera, and of Essal, of the high level and by with authorities, coordination an adequate management, sustainable of vision our which reflects investment, have We term. and long in the medium service continuity allowing to in order on the citizen, set eyes with our work to continued always and society, demands of the new to possible way in the best respond in especially concession areas, our conditions facing the climatic to basin. the Santiago year, 131 billion pesos during the financial reached These investments water in the Chilean the confidence demonstrates that figure a historic provide to commitment clear and the management’s market utility were The investments its clients. service to and high quality a secure insure to works infrastructure new of the execution to destined mainly out, consisting stands project reservoir among which the Pirque supply, 1.5 cubic hectometers of capacity joint with an approximate six tanks of water the potable to autonomy greater which will allow water, raw of During 2019. beginning on December Region the Metropolitan of system was Study Impact Environmental the corresponding year, the financial began. work and construction approved Felipe Aspillaga Felipe Larraín CHAIRMAN Letter from from Letter the Chairman 9 At IAM we will
In order to add two hours of additional autonomy in the short term This management’s financial responsibility and commitment to the continue to work with to those already existing, and in response to the massive service environment were also recognized once again. Both IAM and Aguas interruptions due to extreme turbidity of the Maipo river that occurred Andinas were selected for the third consecutive year to be part of in February and April 2017, Emergency Complementary Works, which the Dow Jones Index Chile, sustainability index of the Santiago Stock our commitment to will be operational beginning on the first quarter of 2018 were quickly Exchange, and at the same time, Aguas Andinas was part of the Dow projected in coordination with the Superintendence of Sanitation Jones Sustainability Index of Emerging Markets for the third time. oversee that Aguas Services, and their construction was started, this meant an additional Aguas Andinas water utility toilet was also chosen in 2017 to be part of investment effort equivalent to that of the first quarter of 2018. the FTSE4Good Emerging Index, which highlights companies with high social, environmental and economic standards. Andinas and its In order to strengthen action in emergency situations and massive service interruptions, a new public-private protocol was adopted, with Throughout the year, the share price of IAM and its subsidiary Aguas the aim of achieving joint and coordinated action between the water Andinas recovered from the significant drop in price recorded in subsidiaries offer
utility and public authorities. Aguas Andinas signed agreements with December 2016 due to the approval by the house of representatives in Letter from the Chairman 20 municipalities of the Metropolitan Region in which emergency its first constitutional procedure, of the bill that sought to amend the supply points, communication lines, tanks and other items to deal with water utility legislation (Bulletin 10.795-33), a measure that introduced better quality service this type of situation are determined in detail. important uncertainty factors to the sector.
At the same time, we continued to improve potable water production At the end of the 2017 financial year, the legal initiative was before the to our clients, through plants and develop the Hydraulic Efficiency Plan, projects that are part Senate’s Public Works Committee, which requested two reports during of a comprehensive management approach with the final purpose of the year: one on constitutionality from the Ministry General Secretariat the action of our giving more resilience to the operation of Aguas Andinas and its water of the Presidency, which established that the bill transgresses the rules utility subsidiaries. of law formation and merits rejection; and another from the Ministry of Public Works, which said it did not sponsor some changes related water utility facilities, In terms of investments and sustainability, in July the subsidiary Aguas to the Committee of Experts in the tariff fixing process, among others. Andinas adopted a new concept in the operation of its wastewater Given these reports, which support our opinion on the parliamentary treatment plants to turn them into biofactories, that is, true resource initiative, we remain confident that the authority will safeguard the which is based on centers capable of transforming waste into reusable products, managed stability of the model, which has enabled not only the modernization with high sustainability standards and energy self-sufficiency. The year of the water utility sector in Chile, but also to reach global standards began with the first biofactory contract in La Farfana, which makes it of quality and coverage of potable water, as well as wastewater the principles of the first facility of its kind in the country and in the world, and makes our collection and treatment. water utility an environmental benchmark in the region. At IAM we will continue to work with our commitment to oversee that innovation, excellence This consistent and sound management was reflected in the Aguas Andinas and its subsidiaries offer better quality service to our Company’s financial results. Net income for the year reached clients, through the action of our water utility facilities, which is based and sustainable Ch$68,719 million. In turn, the EBITDA was Ch$297.39 billion, which on the principles of innovation, excellence and sustainable development. represents a positive variation of 2.4% when compared to the previous financial year. development.
Inversiones Aguas Metropolitanas 10 Annual Report 2017 The Company
Inversiones Aguas Metropolitanas 11 Annual Report 2017 INVERSIONES AGUAS METROPOLITANAS, IAM Inversiones Aguas Metropolitanas S. A. owns 50.1% of Aguas Andinas and its subsidiaries, Chile’s water utility with the
largest number of The Company clients and one of the 50.1% largest private Latin American companies in this industry.
Inversiones Aguas Metropolitanas 12 Annual Report 2017 IAM’s History
On May 19, 1999, Inversiones Aguas Metropolitanas, IAM,
Since 1999, IAM The Company a limited liability company, formed by the Agbar and Suez has carried out a Environment groups (now known as Suez), was founded. Its modernizing, efficient purpose was to take part in the privatization process of the and sustainable Empresa Metropolitana de Obras Sanitarias S. A. (EMOS management of its water S.A.), currently known as Aguas Andinas S. A.
utility companies. Following the international bidding process carried out by the Corporación de Fomento de la Producción (CORFO), IAM won a shares package, subscribed a capital increase and bought additional shares in the stock exchange, taking control of Aguas Andinas (formerly EMOS), owning 51.2% of its share capital.
In June 2005, IAM became an open corporation, and restricted its corporate purpose to investing in shares of Aguas Andinas, as well as the provision of all kinds of advisory and consulting services; related to the transfer of technology and know-how, technical support, business administration and project, especially those regarding the management and operation of businesses related to the water utility sector.
13 Annual Report 2017 History of the Company InversionesMetropolitanas Aguas shares, becoming thenew controller of theCompany. In June 2010, Suez indirectly acquired 75.01% of Agbar’s share of 42.5%. transaction, the Aguas Group achieved alocal market and DeLos Ríosregions of southernChile. With this whose concessionareas are located intheLos Lagos Empresa deServiciosSanitariosLos Lagos(ESSAL), In 2008,thesubsidiary Aguas Andinas acquired 53.5%of Counter market intheUnited States. program was established, trading shares intheOver the shareholders to own company shares, an ADR Level I In 2007, inorder to provide accessto alltypesof company. Andinas, retaining control with50.1% ownership of the The following year, IAM sold 1.1%of itsshares in Aguas retaining 56.6% ownership. the company and Agbar became itssole controller, package of 43.4%of itsshares. New shareholders entered In November 2005,thecompany went to market, placing a sustainability intheregion. economy, pursuing to become abenchmark for Aguas Andinas entered apath towards acircular Finally, duringthe2017 financial year, the subsidiary In 2016, theCompany finalized its ADRprogram. performance inthisarea. during 2016 and2017, showing their excellent Stock Exchange, arecognition that they maintained Index Chile, thefirst sustainability index of theSantiago Aguas Andinas joined theDow Jones Sustainability During the2015financial year, IAManditssubsidiary company’s sole controller. of Agbar’s shares, whichenabled itto becomethe The following year, in2014, Suez acquired 24.99% Metropolitan Region. of thewastewater generated by theinhabitants of the companies, fulfilling itscommitment to clean up 100% Plant through themanagement of itswater utility During 2013,IAMbeganoperating theMapocho 14
Annual Report 2017 The Company The IAM 2000 2001 2002 2003
Management The subsidiary Aguas Andinas The wastewater treatment The subsidiary Aguas Andinas La Farfana, the largest acquired 100% of Aguas plant El Trebal began acquired the remaining 50% of wastewater treatment plant Cordillera and 50% of Aguas operations. The subsidiaries Aguas Manquehue. in Latin America, began Milestones Manquehue. Anam and EcoRiles were operations. Aguas Andinas incorporated. became ISO 9.001 certified in customer service.
2004 2005 2006 2007 2008 2010
Aguas Andinas became ISO IAM became an open The subsidiary Aguas Andinas An ADR Level I program to The subsidiary Aguas Andinas Inauguration of Aguas The Company 9.001 certified in invoicing and corporation. The company became ISO 9.001 certified trade IAM shares in the Over took control of Empresa de Andinas’ Mapocho Urbano collection. went public by placing a for its process of acquiring the Counter market in the Servicios Sanitarios de Los Limpio project, a bicentennial 43.4% share package. Aguas new clients. United States was established. Lagos (ESSAL) by purchasing landmark for the country. IAM Andinas became OHSAS ISO 9,000, ISO 14,000 and 53.5% of its ownership. won second place in the XV certified in occupational OHSAS 18,000 certifications Annual Chilean Corporations health and safety. were renewed for Aguas Report Contest, organized by Andinas and its facilities. Diario Estrategia and Price Waterhouse Coopers.
2012 2013 2014 2015 2016 2017
The subsidiary Aguas Andinas The Mapocho Wastewater The subsidiary Aguas Andinas IAM, like its subsidiary Aguas For the second consecutive Once again, IAM together received the Best Company Treatment Plant came into achieved the best historical Andinas, was selected to year, IAM together with with Aguas Andinas were award from ICARE, one of the operation, which culminated rate in the Chilean capital be part of the Dow Jones Aguas Andinas were selected selected to be part of the most prestigious awards a in the Santiago Basin market for corporate issuing Sustainability Index Chile, the to be part of the Dow Dow Jones Sustainability company can receive in Chile. Sanitation Plan, treating with terms of over 20 years. first sustainability index of the Jones Sustainability Index Index Chile. Aguas Andinas 100% of the wastewater in the Santiago Stock Exchange, to Chile. Aguas Andinas was inaugurated the world’s Metropolitan Region. which only 12 companies were awarded the bronze medal first biofactory in the world selected. in the PROHumana 2016 for the water utility sector sustainability ranking. which converts waste into resources.
Inversiones Aguas Metropolitanas 15 Annual Report 2017 Ownership of the Company
SHARE OWNERSHIP IN 2017
On December 31, 2017, IAM’s share capital consisted of 1,000,000,000 shares, fully subscribed and paid-for, distributed among 377 shareholders.
At the end of the 2017 financial year, IAM’s twelve main shareholders are the following: 0.005% Chilean 12.09% Pension Name Tax ID Shares % Others Funds Suez Inversiones Aguas del 77.329.730-4 566,000,000 56.60% Gran Santiago Ltda. * The Company Banco de Chile for 97.004.000-5 142,570,977 14.26% Non-Resident Third Parties 12.02% Inversiones Tramonto Limitada 76.257.531-0 68,327,293 6.83% Stock Banco Itaú Corpbanca 97.023.000-9 35,003,382 3.50% Brokers for Foreign Investors (Retail Larraín Vial S.A. Corredora de Bolsa 80.537.000-9 24,610,195 2.46% Investors) Banchile Corredora de Bolsa S.A. 96.571.220-8 22,217,221 2.22% Banco Santander 97.036.000-K 15,304,965 1.53% for Foreign Investors Santander Corredores de Bolsa Ltda. 96.683.200-2 14,900,475 1.49% BCI Corredora de Bolsa S.A. 96.519.800-8 14,216,026 1.42% Asociación de Canalistas Sociedad 70.009.410-3 7,638,350 0.76% del Canal de Maipo 56.60% Valores Security S.A. 96.515.580-5 7,432,535 0.74% Corredores de Bolsa Suez IAGSA BICE Inversiones Corredores de Bolsa S.A. 79.532.990-0 6,506,599 0.65% 19.29% International Others (365 shareholders) 75,271,982 7.53% Investors 1,000,000,000 100.00%
* Controlling Shareholder.
Inversiones Aguas Metropolitanas 16 Annual Report 2017 Ownership of the Company InversionesMetropolitanas Aguas subsidiaries. Aguas Andinas andits 50.1% of theshares in of itsassets. IAMowns partner, andowns 56.6% controlling andstrategic Suez IAGSA, isIAM’s (SGAB) through Aguas deBarcelona Sociedad General de CONTROLLER agreement exists between thetwo companies. Article 98of theSecuritiesMarket Law, that ajoint action presumed, inaccordance withthesecondparagraph of In light of thefact that Suez isthecontroller of SGAB,itis countries withmore than79,000 employees worldwide. leader inwater andwaste management, operating in70 than 120 years of experience, thisconglomerate isaworld The Suez Group, maintains control over SGAB. With more world every day. It supplieswater to more than25.6 millionpeople inthe Verde, France, Portugal, Turkey andtheUnited States. Kingdom, Mexico, Colombia, Algeria, Peru, Brazil, Cape water utility industry, operating inSpain,Chile, United water supply, SGAB isaninternational benchmark inthe With almost 150 years of experience indomestic potable 17
Annual Report 2017 The Company The Board of Directors
IAM’s Board of Directors has seven named members and seven alternate members. The directors of the Company serve for three years and may be re-elected at the end of their term indefinitely.
IAM’s Board Members, at the end of the 2017 financial year, are the following*: The Company
VICE-CHAIRMAN CHAIRMAN | PRESIDENT DIRECTOR (INDEPENDENT BOARD MEMBER) Felipe Larrain Aspillaga Alberto Muchnick Mlynarz Herman Chadwick Piñera
Civil Engineer, graduate from Pontificia Universidad Commercial Engineer, Graduate from Lawyer and graduate in Law from Pontificia Católica de Chile. Universidad de Chile. Universidad Católica de Chile, he also practices law He was the CEO of Aguas Andinas between 2004 He was Managing Director of HSBC Bank (USA), as a senior partner of the firm Chadwick & Reymond and 2011, he then was appointed Chairman of Aguas Executive Vice Chairman for Latin America of the Attorneys at Law. Andinas from 2011 to 2016, he is also Director of Republic National Bank. Current Executive Chairman President of Enel Chile S.A., Vice-President of Aguas the Sociedad del Canal de Maipo and of the Junta of CGIS Securities LLC in Miami, United States. Andinas, Vice-President of Intervial S.A. Vice-President de Vigilancia del Río Maipo. Mr. Larrain has been a Mr. Muchnik has been an Vice-President of IAM’s of the Arbitration and Mediation Center of the Director of IAM since April 30, 2014, and Chairman Board of Directors since April 21, 2010. Santiago Chamber of Commerce, Director of Viña of the Board of Directors of IAM since June 29, 2016. Santa Carolina S.A. He has been a Director of IAM since April 27, 2006.
*Changes in the board during the year According to the Material Event from May 31 2017 informed to the Financial Market Commission (previously known as Superintendence of Securities and Insurance), Rodrigo Axócar Hidalgo’s resignation was received. On this date, his Alternate Director, Carlos Mladinic Alonso, became Named Director.
Inversiones Aguas Metropolitanas 18 Annual Report 2017 The Directors InversionesMetropolitanas Aguas Executive Director of CMBCHILEand Vice Chairman Enjoy, Empresas Hites andseveral road andairport Gutiérrez hasbeenaNamed Director of IAMsince Universidad Católica deChile, MBA from Harvard Infrastructure Investment Fund. Ignacio Guerrero York andNMBBank (now INGBank).Partner and He was formerly Vice Chairmanof Citibank New of Codelco Chile. Current partner andExecutive Commercial Engineer, graduate from Pontificia infrastructure companiesrelated to thePrime Director of CMBPRIME A. G.F. S.A.Director of Ignacio Guerrero Gutiérrez Business School. DIRECTOR April 27, 2006. France, Senior Vice Chairmanof theServicesDivision Europa for theSuez Group. Ana Girós Calpéhasbeen and Vice Chairmanof theServicesDivision for Spain, has beenCEO for Latin America and Agua Industrial Industrial Engineer, specialized inPower Electronics Escuela Técnica Superior deIngenieríaIndustrial de Latin America andMexico. He was CEO for Europe and Latin America at Suez. Since January 2017 he He worked at Alston asSenior Vice Chairmanfor and Electromechanical Systems, graduate of a Named Director of IAMsince April 27, 2017. Ana Girós Calpé Barcelona (ETSEIB). DIRECTOR 19 Graduate inEconomics andCommercial Engineering Economics andBusinessFaculty of Universidad del private companies.Between 2010 and2014,hewas CORFO’s Executive Vice-President. He iscurrently performs therole of Director indiverse publicand Desarrollo. He hasbeenaNamed Director of IAM Director for theEntrepreneurship Institute of the Chile andFitch Chile. He hasbeenandcurrently consulting firm. He was CEO of Duff andPhelps from Pontificia Universidad Católica deChile, of Chicago, specialized inPublicFinance and Founding partner andchairman of Econsult and Master inEconomics from University Hernán CheyreHernán Valenzuela Economic Development. since April 27, 2017. DIRECTOR Commercial Engineer withamention inEconomics Government, Minister of Agriculture, andChairman Aeronáutica (Enaer) andChairmanof Agroseguros. Current Director of Metro S. A., Empresa Nacional of thePublicCompaniesSystem, Undersecretary Corporation ( Director of IAMsince April 30, 2014andNamed Economic Relations, CEO of theDevelopment and Chairmanof Televisión Nacional deChile. Carlos Mladinic Alonso hasbeenan Alternate of Economy, General Director of International He hasbeenMinister General Secretary of Carlos Mladinic Alonso Carlos Director sinceMay 31,2017. from University of Chile. CORFO DIRECTOR ), Director of BancoEstado
Annual Report 2017 The Company The Alternate Directors
ALTERNATE DIRECTOR ALTERNATE DIRECTOR ALTERNATE DIRECTOR ALTERNATE DIRECTOR (INDEPENDENT) Hugo Silva Raveau Giorgianna Cúneo Queirolo Jorge Cosme Sagnier Marcelo Tokman Ramos
Industrial Mechanical Technician and Business Publicist with a degree in Marketing from Graduate in Business Administration and Commercial Engineer with a mention in Economics Administration Diploma from Universidad Universidad del Pacífico. Management and MBA from ESADE Business from Pontificia Universidad Católica Federico Santa María. She was Chief Advertising Officer of Banco de Chile School, Barcelona, Spain. de Chile, Master and Ph. D. from University He worked for 42 years at GE as Regional Director and Chairman of the Association of Wine Growers Chief Financial Officer of Suez Spain. He was of California, Berkeley. of Mining, and Regional Chairman for Bolivia, Chile, of the Casablanca Valley. Current Executive Director CEO of IAM and Director of Aguas Andinas. Has He was formerly Vice-President for Vestas South Peru and Ecuador, among others. Current partner of Viña Casas del Bosque, Association of Winemakers extensive experience in Grupo Agbar as Director America, previously Energy Minister, Minister
of Crisis Management Latin America. Hugo Silva of Casablanca Valley and Falabella Retail of the of Administration and Management Control, Tax Chairman of the National Energy Commission, The Company Raveau has been an Alternate Director of IAM since Falabella Group. Giorgianna Cúneo Queirolo has Director, Consolidation and Administration and Studies Manager for the Budget Directorate April 27, 2017. Alternate Director of the President been an Alternate Director of IAM since April 30, Director of Treasury Finance. Jorge Cosme Sagnier and General Coordinator of the Ministry of Felipe Larraín Aspillaga. 2014. Alternate Director of the Vice President of the has been Director of IAM since April 27, 2017. Finance Advisors. Current CEO of ENAP.
The Directors Board of Directors, Alberto Muchnick Mlynarz. Alternate Director of the Named Director Marcelo Tokman Ramos has been Director of IAM Herman Chadwick Piñera. since April 30, 2014. Alternate Director of the Director Herman Cheyre Valenzuela.
ALTERNATE DIRECTOR ALTERNATE DIRECTOR (INDEPENDENT) Silvina Somasco Mozziconacci Rodrigo Castro Fernández
National Public Accountant from Universidad Commercial Engineer with a mention in Economics Nacional del Litoral de Santa Fe, Argentina. from Gabriela Mistral University. Master in Economics She has extensive experience in the Suez Group: at Georgetown University. Specialization courses she was Management Controller in Argentina, and in Strategy and Finance at Stanford University of held various positions in Finance Directorates in California at Berkeley. France and other countries. She was Director of He was Director of the Social Program of Libertad Contracts at Lyonnaise des Eaux in France. Current y Desarrollo and Dean of the Chair of Economics Administrative and Financial Director of BU LATAM. and Business at the Universidad del Desarrollo. Silvina Somasco Mozziconacci has been Director Professor at the Adolfo Ibáñez University. Director of of IAM since April 27, 2017. Alternate Director of the companies. Consultant to the World Bank and IDB. Named Director Ana Girós Calpe. Current partner and Director of Genesis Partners. Rodrigo Castro Fernández has been Director of IAM since April 27, 2006. Alternate Director of the Named Director Ignacio Guerrero Gutierrez.
Inversiones Aguas Metropolitanas 20 Annual Report 2017 The Administration
CEO Laureano Cano Iniesta The Company Graduate in Economics and Business Studies from Pompeu Fabra University of Barcelona. He has extensive experience in the Agbar Group, where he has served as Economic-Financial Manager and member of the Board of Directors of several water utility companies. Director of Aguas Andinas since April 2016. Laureano Cano has been CEO of IAM since May 2, 2016.
Note: More information on the Board of Directors and the Administration can be found in the Corporate Governance section of this report.
Inversiones Aguas Metropolitanas 21 Annual Report 2017 Company Operations
Inversiones Aguas Metropolitanas 22 Annual Report 2017 The Company
Inversiones Aguas Through the operation of its water utility subsidiaries, IAM provides raw water catchment, production, transportation 50,1% Metropolitanas, and distribution of potable water; and collection, treatment IAM, owns 50.1% and final sewage disposal services to an estimated of Aguas Andinas population of 8 million people, located in the Metropolitan, De Los Lagos and De Los Ríos regions of Chile. and its subsidiaries, Chile’s largest water The concession areas include an area of 71 thousand Company Operations utility group and one hectares located in the Santiago basin, in the intermediate depression of central Chile; plus a territory Regulated Company of the largest private of 13 thousand hectares, which is located in the provinces companies in Latin of Valdivia, Ranco, Llanquihue, Chiloé and Palena in the America. south of the country.
IAM’s regulated water utility subsidiaries are: AGUAS ANDINAS, AGUAS CORDILLERA, AGUAS MANQUEHUE AND ESSAL. Regulated companies with high standards of coverage: 100% water supply, 98% sewage and 100% wastewater treatment.
IAM’s non-regulated subsidiaries are: 100% 100% 53.5% 100% 100% 100% 100% ECORILES, GESTIÓN Y SERVICIOS (G&S), ANÁLISIS AMBIENTALES (ANAM) AND AGUAS DEL MAIPO.
These companies are able to provide comprehensive Regulated Companies Non-regulated Companies management for the water utility industry, by providing industrial waste treatment services, equipment commercialization, laboratory analysis and the development of energy projects related to water utilities, respectively.
Inversiones Aguas Metropolitanas Annual Report 2017 Operations Company Operations IAM, through the operation Raw water catchment
of its water utilities, Sources: comprehensively manages In the Metropolitan Region, the Maipo and Mapocho rivers the water cycle, which are the largest sources of raw water catchment, which rise in the Andes Mountains. In the south of the country, on the includes the catchment of other hand, the sources of catchment are superficial and raw water; the production, operate in conjunction with underground aquifers. Through transport and distribution its subsidiaries, IAM maintains legal ownership of the water rights of all its sources. of potable water; and the collection, treatment and Water Reserves: final disposal of sewage. In Santiago, the company has important water reserves that provide the necessary water resources when water from the sources is scarce. The three largest reserves are: El Yeso Reservoir, with a capacity of 220 million cubic meters; Laguna Negra with 600 million cubic meters; and Laguna Lo Encañado with 50 million cubic meters. In the concessions in southern Chile there is no need for additional reserves, as the sources of catchment ensure continuity of supply.
Inversiones Aguas Metropolitanas 24 Annual Report 2017 Company Operations Operations
Production of potable water Potable water transportation and Sewage collection Sewage Treatment and Disposal distribution Production plants: Collection network: Sewage treatment plants: In the Greater Santiago area, the main facilities Regulation tanks: The company has an efficient collection They allow the sanitation of sewage, leaving are the Complejo Las Vizcachas and Planta In the Metropolitan Region, Aguas Andinas and network, which allows sewage to be drained it in optimum conditions for its restitution to La Florida, which have design flows of sixteen its subsidiaries maintain 373 regulating tanks, through the sewerage and taken to wastewater natural watercourses, in accordance with the thousand and four thousand liters per second, with a capacity of more than one million two treatment plants or final disposal points. standards required by Chilean legislation. respectively. In the regions of Los Lagos and De hundred thousand cubic meters, which provide Los Ríos, there are numerous plants that supply high autonomy to the system. In the Metropolitan Region, sewerage is gravity In the Santiago basin, IAM’s water utilities the requirements of the 33 cities in that area. based, taking advantage of the location of have two large facilities: La Farfana and the Distribution network: the city of Santiago at the foot of the Andes Trebal-Mapocho Complex. This is in addition Production capacity: An extensive underground network for Mountains. to 10 smaller plants in different areas of the IAM’s production plants have a combined transporting and distributing potable water to concession area. In the concession areas in the potable water treatment capacity of 38.27 all water utility clients. IAM’s subsidiaries have south of the country, ESSAL has 28 wastewater cubic meters per second, of which 34.37 100% coverage. treatment plants. At a consolidated level, cubic meters per second correspond to the these plants have a treatment capacity of Metropolitan Region facilities and 3.9 cubic 20.98 m3/s. meters per second to the plants in the ESSAL concession area. Treatment coverage is 100%, which contributes to the country’s competitiveness.
Inversiones Aguas Metropolitanas 25 Annual Report 2017 Clients Company Operations IAM’s water utilities In the Metropolitan Region, the 71 thousand- hectare concession area is bordered to the north by the Cuesta de subsidiaries supply more Chacabuco and to the south by Angostura de Paine, in the than 2 million clients intermediate depression of central Chile. -classified as residential, In the south of the country, the concession area covers commercial and industrial-, more than 13 thousandhectares, concentrating 33 cities in equivalent to an estimated the provinces of Valdivia and Ranco in the Los Ríos Region; population of 7.9 million and Osorno, Llanquihue, Chiloé and Palena in the Los Lagos Region. people, representing a 43% market share nationwide. Potable water clients (1)
(1) The term “client” refers to the natural or legal person who lives and/or resides in the property that receives the public service of potable water distribution, sewage collection or both. 2,213,869 2,259,245 The number of clients reported consider those clients who have been billed as of the end of 2016 2017 the year.
Inversiones Aguas Metropolitanas 26 Annual Report 2017 Our coverage
Aguas Andinas Essal
Aguas Manquehue
Aguas Cordillera
Sewage Disposal San José de la Mariquina Panguipulli
Til-Til Máfil
Colina Los Company Operations Lagos Paillaco
Futrono Corral Lampa Pudahuel Únión Río Bueno Curacaví San José de Maipo San Pablo Lago Ranco Guayacán Peñaflor Osorno Padre Hurtado Purranque El Canelo Río Negro María Pinto Las Vertientes Corte Alto Frutillar La Obra Fresia Llanquihue Malloco El Manzano Los Muermos Puerto Varas Pomaire Pirque Alerce Puerto Montt El Monte Alto Jahuel Maullín
Ancud
Melipilla
Isla de Maipo Dalcahue Castro Buin Paine Chonchi Achao
San Chaitén Gabriel
Talagante Quellón Futaleufú Maipo Linderos Calera de Tango
Inversiones Aguas Metropolitanas 27 Annual Report 2017 Non-regulated companies
IAM has non- EcoRiles S.A. Gestión y Servicios S.A. EcoRiles, a company specialized in the consultancy Dedicated to the sale of materials for potable water and regulated subsidiary and comprehensive wastewater management, has sewage networks, and to a lesser extent to the collector companies, which consolidated itself as the leading operator of industrial cleaning service and water networks for the general are complementary effluent plants in the country, with operations water utility and industrial market. throughout Chile. and contribute to At the end of the 2017 financial year, the company the management of At the end of the 2017 financial year, EcoRiles continues managed to consolidate its position as one of the most water utilities. to lead the market in the operation and maintenance of important suppliers of water utility materials for project Company Operations liquid industrial waste treatment plants in Chile, with a development in the real estate and sanitation markets market share of close to 50%, of which we managed to in the Metropolitan Region, achieving annual sales of consolidate a share of over 90% in the dairy market and USD 14.0 million. more than 50% in the paper industry. Annual revenue reached US$22.0 million. Aguas del Maipo S.A. Subsidiary responsible for developing energy projects Análisis Ambientales S.A. (Anam) derived from the water utility business. Laboratory for environmental sampling and analysis, accredited under Chilean requirements and the The Methanization Plant started operating in July 2017. requirements of Suez Spain. This plant converts the biogas generated by the La Farfana Biofactory into biomethane which is then directly It is the main analysis services laboratory of the injected into the natural gas network of Santiago. This Aguas Group in Chile. Itis one of the most important allows for the replacement of natural gas, a fossil fuel, environmental analysis laboratories in the water, with a renewable source of fuel, biomethane. biosolids and solid waste matrixes in the country, achieving annual sales of more than US$ 14.0 Million, displaying an 10% growth in revenue when compared to 2016.
Inversiones Aguas Metropolitanas 28 Annual Report 2017 2017 Financial Year
Inversiones Aguas Metropolitanas 29 Annual Report 2017 Planning Sustainable and Long-Term Management
With a view towards the sustainability of its business, IAM’s implies making this facility a true source of resources, water utility operations have a long-term focus, which where everything is usable and whose operation tends seeks to plan and anticipate the demands on water utility towards energy autonomy. The 7 strategic pillars of the Financial Year2017 matters that the Chilean society will require, as well as to respond satisfactorily to the new climate conditions faced Along with this, in 2017 efforts continued to provide greater subsidiary Aguas Andinas by its concession areas. robustness and reliability to the production of potable water, 1. Business model: Sustainable company, capable of generating with significant investments that will increase the autonomy shared value for its stakeholders. In this sense, the vision of a sustainable management of the system. A good example of this is the progress allows business continuity, which implies investments made in the Pirque Tanks, as well as the Complementary 2. Resilience: Ability to adapt to changes in the environment and in new infrastructure works, maintenance of the existing Emergency Works, which will be available from 2018 and will overcome contingencies. ones, modernization and efficiency of processes and the make it possible to increase the autonomy and resilience introduction of an innovative outlook at how to work and of Aguas Andinas in the short term from 9 to 11 hours. In 3. Digitalization: Technology at the service of interactivity between address these challenges. addition, the Hydraulic Efficiency Plan and the upgrade of clients and the company and of achieving more agile and efficient the potable water production plants continued. processes. Under these parameters, IAM’s water utility subsidiaries within the Metropolitan Region took the first actual In financial terms, the market again acknowledged the 4. Circular economy: Use and production of renewable resources to steps on a path that seeks to make them a benchmark of consistent and stable management of the company and preserve the environment. environmental sustainability in the country, thanks to the its subsidiaries. For the third consecutive year, Aguas Seeking shared value, establishing relationships path outlined by its strategic plan that is framed in 7 pillars Andinas was part the Dow Jones Sustainability Index of 5. Social legitimacy: of respect, trust and transparency with the community. or lines of work, in order to address important challenges the Emerging Markets, and both IAM and Aguas Andinas within 5 years. were selected, also for the third time, to be part of the Dow 6. Innovation and People: Promoting innovative environments, Jones Sustainability Index Chile, the sustainability index of promoting the well-being of workers and their capacity for change. As an important first step, in July Aguas Andinas the Santiago Stock Exchange. transformed the concept of the La Farfana sewage 7. Water and quality of life: Disseminate the benefits of water to treatment plant to become the first biofactory in the Regarding Corporate Governance, the Board of Directors of people, their health and well-being. country and the world in the water utility sector, which the Company was completely renewed in 2017.
Inversiones Aguas Metropolitanas 30 Annual Report 2017 Comprehensive Water Cycle Management
Catchment and production of potable water
At the end of the 2017 financial year, the production of potable water in the Greater Financial Year2017 Santiago area, measured at the output of the plants, was 761.4 million cubic meters; while in the concession areas in the south of the country it was 60.6 million cubic meters.
At the consolidated level, IAM water utilities had a joint annual production of potable water of 822.0 million cubic meters, a growth of 2% when compared to 2016. Outstanding investments and projects in 2017
PRODUCTION BY SOURCE TYPE IN M3 (2013-2017) In order to provide greater autonomy to the potable water At the same time, and in order to increase autonomy in Companies 2013 2014 2015 2016 2017 production system, IAM’s water utility facilities in the the short term -before the Pirque Tank is completed-, Metropolitan Region are in the execution stage of the in 2017, work began on the Emergency Complementary Aguas Andinas (Surface) 527.9 545.2 567.3 556.6 561.1 Phase II of the supply assurance works, consisting of the Works, which will be operational in 2018. These works Aguas Andinas (Underground) 89.2 92.5 90.8 89.8 98.6 construction of the Pirque Tanks, a large raw water reserve, involved an additional investment of 15 billion pesos for Aguas Cordillera (Surface) 78.8 80.5 82.5 88.9 85.7 which will have a capacity of approximately 1.5 hectometres, the financial year. and which will provide greater water availability in the event Aguas Cordillera (Underground) 19.6 24.9 22.4 11.7 16.0 of high turbidity of the Maipo and Mapocho rivers. Likewise, the subsidiary Aguas Andinas continued to ESSAL (Surface) 21.5 19.3 20.6 22.0 21.5 strengthen its potable water production infrastructure with ESSAL (Underground) 38.7 39.5 40.3 40.0 39.1 The Pirque Tanks involve a total investment of $64 billion, the improvement of the Las Vizcachas Complex, the start- and its operation is planned for 2019. Its Environmental up of the arsenic abatement plant in San Antonio and the Total 775.7 801.9 823.9 809.0 822.0 Impact Study was approved during the 2017 financial year. final stage of the construction of the new Chamisero plant, which will be operational in May 2018.
Inversiones Aguas Metropolitanas 31 Annual Report 2017 LENGTH OF THE DISTRIBUTION NETWORK 2013-2017 (KM)
Aguas Andinas Aguas Cordillera ESSAL
2,329 2017 11,884 1,374 15,587
2,300 2016 11,814 1,379 15,493
2,128 2015 11,765 1,356 15,249
2,171 2014 11,700 1,347 15,218
2,168 2013 11,634 1,330 15,132
Distribution Financial Year2017 of potable water NUMBER 0F POTABLE WATER CLIENTS (2013-2017)
At the end of 2017, the length of the distribution 2,213,869 2,259,245 network of IAM’s subsidiaries reached 15,587 2,149,673 Comprehensive water cycle management cycle water Comprehensive 2,039,298 2,096,999 kilometers, which corresponds to an increase of 1% over the previous year.
In the Greater Santiago area, the network length 2013 2014 2015 2016 2017 increased by 65 kilometers, while in the Los Lagos and Los Ríos regions, 29 kilometers were added. Outstanding investments and projects in 2017
During the financial year, the development management and an improvement in quality and of the Hydraulic Efficiency Plan continued, continuity of service, among others. whose objective is to reduce water losses in the network, recovering 70 cubic hectometers of In addition to this, in 2017 the project to update potable water per year, in order to ensure long- the Operational Control Center began, which will term sustainability. manage to modernize the operation thanks to the intelligence management of the data collected. Likewise, this plan will allow a predictive outlook for the reduction of breakdowns, adequate asset
Inversiones Aguas Metropolitanas 32 Annual Report 2017 LENGTH OF THE COLLECTION NETWORK 2013-2017 (KM)
Aguas Andinas Aguas Cordillera ESSAL
2,060 2017 9,654 1,109 12,823
2,038 2016 9,596 1,109 12,743
1,848 2015 9,556 1,095 12,499
1,755 2014 9,516 1,077 12,348
1,755 2013 9,481 1,073 12,309
Sewerage Financial Year2017 network NUMBER OF SEWERAGE CLIENTS (2013-2017)
IAM’ water utilities’ sewerage network totaled 12,823 2,160,473 2,205,940 kilometers in the 2017 financial year, increasing by 1% 2,096,347 Comprehensive water cycle management cycle water Comprehensive 1,999,419 2,045,634 when compared to the previous period. Specifically, ESSAL’s sewerage network was extended by 22 kilometers and, for its part, that of Aguas Andinas and its subsidiaries in the Metropolitan Region grew by 58 kilometers during 2013 2014 2015 2016 2017 the financial year. Outstanding investments and projects in 2017
During the financial year, Aguas Andinas started a new sewerage management system, which aims to make cleaning work more efficient thanks to the televised inspection of the sewerage network, and then clean only the sections that require it, increasing the efficiency and improving the service provided to the clients in the Metropolitan Region.
Inversiones Aguas Metropolitanas 33 Annual Report 2017 VOLUME OF SEWAGE TREATMENT IN MILLIONS OF CUBIC METERS (2013-2017)
La Farfana Trebal - Mapocho
ESSAL
Others Metropolitan Region
35.6 2017 275.8 222.4 62.0 595.8
32.9 2016 283.5 209.2 55.1 580.7
31.7 2015 284.9 197.6 57.6 571.8
30.8
Sewage 2014 285.6 197.1 35.4 548.9 Financial Year2017
treatment 30.4 2013 287.3 188.3 34.6 540.6
In 2017, the consolidated volume of sewage treatment of the IAM’s water utilities was 596 million cubic meters, with Comprehensive water cycle management cycle water Comprehensive 90% corresponding to the Metropolitan Region and 10% to treatment in the Los Ríos and Los Lagos regions in the south of the country.
Outstanding investments and projects in 2017
At the beginning of 2017, the expansion of the In July, the new contract for the operation of the La fourth stage of the Trebal-Mapocho Plant began Farfana plant began. This contract incorporates the operations, a work that involved a total investment concept of a biofactory which implies a change in of $71.8 billion pesos, and which has increased its operation from wastewater treatment to resource the treatment capacity by 2.2 cubic meters per management, with the aim of converting waste second, in response to the growing demand for into valued resources in a sustainable facility with waste water treatment among the inhabitants of energy autonomy. At the same time, two projects the Santiago basin. related to nitrogen treatment were initiated in La Farfana and Mapocho-Trebal as well as one related to cogeneration in the latter facility.
Inversiones Aguas Metropolitanas 34 Annual Report 2017 Annual Investments
$131 billion pesos was The joint investment plan of IAM’s subsidiaries in Financial Year2017 2017 was $131 billion, an increase of 16% over the the total investment previous year. Of this amount, 95% corresponded made by IAM’s to the water utilities of the Company, while the subsidiaries in 2017. remaining 5% was allocated to projects in non- regulated subsidiaries.
INVESTMENTS BY SUBSIDIARY IN MILLIONS OF PESOS (2013-2017)
Subsidiary 2013 2014 2015 2016 2017 Aguas Andinas 68,196 60,091 91,212 80,507 89,337 Aguas Cordilleras 9,200 19,200 17,934 19,710 20,159 ESSAL 8,506 9,044 13,265 12,271 15,367 Non-Regulated Subsidiaries 98 509 4,447 490 6,640 Total 86,000 88,844 126,858 112,978 131,503
Inversiones Aguas Metropolitanas 35 Annual Report 2017 2017 Clients
Improving the customer service experience is Number of clients in 2017 NUMBER OF CLIENTES PER WATER UTILITY COMPANY IN 2017 Financial Year2017 one of the focal points of the management of At the end of the 2017 financial year, the total IAM’s water utility companies, and in 2017 it number of potable water clients of IAM’s continued with projects aimed at improving regulated subsidiaries reached 2,259,245, a Aguas Andinas Aguas Cordillera Aguas Manquehue ESSAL interaction with customers, promoting agile 2%% increase over the previous year. On the and efficient channels that respond to their other hand, sewerage clients were 2,205,940, requirements in a satisfactory manner. increasing 3% when compared to 2016.
Consequently, during the year, the new virtual Of the total number of potable water agency of the subsidiary Aguas Andinas began customers, 7.39% were subsidized Potable water operations, an omni-channel platform that customers, which favors stable payment 14,223 integrates all requirements, regardless of the behavior and a lower level of payment Total 161,068 2,259,245 224,401 channel through which they enter and that also default for the water utility facilities of the allows online transactions to be carried out. Company. 1,859,553 In addition to this, the Real Estate Portal was launched, which makes it possible to carry out online procedures regarding new connections and their follow-up. 2,259,245 is the total number of potable water Sewerage clients serviced by IAM’s 13,791 158,489 Total 213,580 water utilities. 2,205,940
1,820,080
Inversiones Aguas Metropolitanas 36 Annual Report 2017 Workforce
By the end of 2017 IAM During the year, IAM’s subsidiaries continued Financial Year2017 to strengthen the talent, competences and total staff reached 2,107 employability of their personnel, as well as workers. leadership in order to promote a better working environment.
IAM WORKFORCE IN 2017
Aguas Aguas Aguas Strata IAM S.A. ESSAL S.A. Others Total Andinas S.A. Cordillera S.A.* Manquehue S.A.*
Managers and 2 70 6 0 7 8 93 senior executives Professionals 1 752 68 7 208 288 1.324 and technicians Workers 1 305 49 7 156 172 690 Total 4 1.127 123 14 371 468 2.107
* Aguas Cordillera and Aguas Manquehue share managers and senior executives.
Inversiones Aguas Metropolitanas 37 Annual Report 2017 Safety Indices
In 2017 and in accordance with their track
record, IAM subsidiaries had very good safety Financial Year2017 ratings, much better than those of the local water utility sector.
IAM SUBSIDIARIES SAFETY INDICES (2013-2017)
Number of days lost due to Days lost due to accidents Number of accidents with time lost Incidence Rate (1) accidents with time lost pero worker (2)
Empresas 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Aguas Andinas S.A. 15 12 10 12 8 143 139 500 299 208 1.47 1.14 0.94 1.10 0.72 13.97 13.20 47.00 27.40 18.71 Aguas Cordillera S.A. 0 2 0 0 0 199 223 4 0 0 0.00 10.53 0.00 0.00 0.00 154.81 18.10 66.90 0.00 0.00 Aguas Manquehue S.A. 5 1 1 0 0 0 36 0 0 0 3.89 0.81 0.86 0.00 0.00 0.00 189.50 0.00 0.00 0.00 ESSAL 4 1 5 1 4 59 45 107 358 130 1.34 0.34 1.56 0.28 1.08 19.75 15.20 33.30 98.70 34.97 Non-Regulated Subsidiaries 4 10 2 3 1 158 376 6 14 7 1.08 2.65 1.01 0.73 0.22 42.81 99.82 1.50 3.40 1.52 Total 28 26 18 16 13 559 819 617 671 345 1.52 1.39 0.94 0.80 0.63 30.37 43.86 36.10 33.75 16.63
(1) Incidence Rate: (Number of accidents during the period/average number of workers)*100 (2) Days lost due to accidents pero worker: (Number of days lost/average number of workers)*100
Inversiones Aguas Metropolitanas 38 Annual Report 2017 Environment
The subsidiary Aguas Andinas operation, which promotes the development Financial Year2017 of sustainable initiatives in tune with the has introduced circular environment. The goal is to achieve the economy as a strategic elimination of waste in the medium term - focus of its operation, which turning it into valued resources -, energy self- sufficiency and reduce environmental impact promotes the development of to zero, minimizing the effects of its facilities sustainable initiatives in tune on the environment. with the environment. In specific terms, this commitment is reflected in initiatives such as: the beneficial use of bio solids generated at its treatment IAM’s water utility subsidiaries have the vision facilities, which are used as fertilizers in of being benchmark sustainability companies agricultural soils; the utilization of biogas, in Chile, together with the aim of managing also obtained from the sanitation process, as resources efficiently, creating shared value. fuel in cogeneration engines or to heat bio This conviction is integrated into each of the digesters, among others. Company’s processes and operations in an effective and overarching manner, ensuring Thanks to the execution of these and other the preservation of the resource and the initiatives, in 2017 the subsidiary Aguas natural environment. Andinas obtained the Energy Efficiency Seal, Gold category, awarded by the Ministry of The subsidiary Aguas Andinas has introduced Economics of Chile. circular economy as a strategic focus of its
Inversiones Aguas Metropolitanas 39 Annual Report 2017 Financial Management
Inversiones Aguas Metropolitanas 40 Annual Report 2017 Strength and Stability Financial Management IAM’s financial management With regards to financing, in October, the subsidiary ESSAL conducted a successful is characterized by its bond issuance of two thousand bonds of stability and consistency, Series C for a nominal value of one million UF which has allowed it to have for 23 years. The issuance was conducted in order to refinance liabilities and to finance the a robust profile in the local investments the the subsidiary will conduct and international market. during 2018.
Regarding the volume of share transactions, the Santiago Stock Exchange reported that IAM This behavior allowed the Company to be selected, shares will remain in the IPSA stock exchange together with its subsidiary Aguas Andinas, for the index during 2018, with a weighting of 0.92%, third consecutive year to be part of the Dow Jones Aguas Andinas (Aguas-A) will also continue to Sustainability Index Chile, a sustainability index be part of this index, with a weighting of 2.14%. of the Santiago Stock Exchange. Aguas Andinas was also included for the third time in the Dow In terms of risk, the Fitch Ratings and ICR rating Jones Sustainability Index Emerging Markets and agencies confirmed the AA+ category for Aguas was chosen as a component of the FTSE4GOOD Andinas, while Fitch Ratings and Feller-Rate Emerging Index. These indices acknowledges ratified IAM AA+ category. companies with high standards in social, environmental and economic areas.
Inversiones Aguas Metropolitanas 41 Annual Report 2017 Risk Factors Financial Management Seasonality Operational The water utility business is characterized by seasonality, risks which could lead to possible variations in results from quarter to quarter. The highest levels of demand and income are recorded during the summer months (December to March in the southern hemisphere), whilst the lowest demand coincides with the winter months (June to September).
Weather conditions The processes of catchment and production of potable water depend mainly on the climatic conditions in the river basins. Precipitations, temperature, sediment carryover, drought, among other factors, determine the quantity, quality and continuity of raw water available. In order to face these phenomena, IAM’s water utility facilities have water reserves and contingency plans which are constantly updated.
New investments IAM’s subsidiaries must comply with the development plans committed to the Superintendence of Sanitation Services (SISS), which involve economic, administrative and technical resources. However, the tariffs charged to customers include these new investments, guaranteeing
Inversiones Aguas Metropolitanas 42 Annual Report 2017 them a minimum return. In addition, the The tariffs for ESSAL, corresponding to the experience of the controller ensures the sixth rate fixing process, were determined necessary know-how to successfully and during 2016 and will remain in force until 2021. efficiently carry out these investment plans. The agreement states the following:
Government regulation - Tariffs are maintained in real terms. The Chilean water utility industry is highly - Additional tariffs of 1.5% at the end of regulated by the Government due to its 2018 when the supply assurance works monopoly status, exposing it to possible come into operation. These works include changes in the established regulations. production assurance tanks, generators and support equipment. The current legal framework regulates the operation of concessions and the tariffs Despite the great stability of the Chilean charged to customers, which are determined regulatory framework, in December 2016, every five years. the House of Representatives approved the Bill Bulletin No. 10,795-33, which The tariff fixing mechanism is developed under modifies the legislation applicable to water technical criteria, and there may be differences utility services, regarding unregulated between the studies submitted by the water services, rate setting and compliance with Financial Management utilities and the SISS. If no agreement is development plans by service providers. reached, the disagreements are resolved This initiative was submitted to the Senate by a commission of experts composed of in the second legislative stage and, at the representatives of each of the parties. end of the financial year, was submitted to Risk factors Risk the Public Works Committee of the Senate. The current tariff period currently in force In this instance and throughout the year, for the subsidiaries: Aguas Andinas, Aguas two reports were requested: one on its Cordillera and Aguas Manquehue, which is constitutionality from the Segpres (Ministry in force between 2015 and 2020, includes, General Secretariat of the Presidency) and among other aspects: another from the MOP (Ministry of Public Works) to deliver its formal position on the - Additional charges when construction bill. In the first case, it was established that investments come into operation, such as the initiative transgressed the rules on the production assurance works for extreme drafting of the bill and that it should be turbidity situations (+1.1% estimated rejected by the Senate; and in the second for 2019) and nitrogen treatment works case, the MOP pointed out that it does not in return at the La Farfana and Trebal- sponsor some changes, such as the reduction Mapocho treatment plants (+1.4% of the risk premium and the modifications estimated for 2019). to the composition and functioning of the - Discounts on fees for unregulated Committee of Experts of the rate setting businesses, when the Alto Maipo Project process, among others. comes into operation (estimated at -1.2% when it is operational).
Inversiones Aguas Metropolitanas 43 Annual Report 2017 Financial Management
Also, in the last quarter of 2017, the bill to flat-rate amount would be charged, which In addition, this law, which will come into strengthen the National Consumer Service, may not exceed 30% of the sales during the force in May 2018, incorporates the concept of Financial risks Risk factors Risk Bulletin Nº 9369-03 was passed, which suspension or double the economic profit. It damages in class actions. Inflation includes some modifications involving the also specifies that the fine may not exceed The revenue of the Company is directly water utility sector. 45,000 UTA. However, in January 2018, the Constitutional correlated with inflation and, therefore, its debt Court dictated sentence STC-4012-17 CPR is issued mainly in Unidades de Fomento (UF). Among these, there is a risk of fines in the In the case of compensations, these will have on the constitutionality of Law 19.496 on following circumstances: the following characteristics: Consumer Rights, Bulletin Nº 9369-03. Interest rates Financial liabilities are equivalent to fixed-rate • For the suspension, cessation or failure • Compensations shall be direct and This sentence declared that 13 of the debt at 89.20%, comprising approximately to provide basic services of potable automatic to the affected consumer. precepts were unconstitutional, eliminating 66.92% short-term and long-term bonds and water and sewerage services without • For each day of interruption, compensation those which 22.82% reimbursable financial contributions. justification, which will be penalized with a will be paid for an amount equal to the The remaining 11.46% is variable rate debt and fine of up to 1,500 UTM. average daily value of the previous bill This ruling declared unconstitutional 13 corresponds to loans from domestic banks. • The Court may impose a fine for each times 10. precepts, eliminating those that were related consumer affected (of up to 1,500 UTM). • It is understood as a day of interruption, to the regulatory ability and the sanctioning 4 hours of continuous interruption or ability of the norm. It should be noted that the law states that more, within a period of 24 hours from the the multiplicity of fines will not be applicable beginning of the event. In all other cases, In regards to utility companies, the norm that when the company has repaired in a complete proportionality will apply. establishes automatic compensations for and effective way the damage caused to • It will only be applied if the special law consumers in the case of injustified service cuts all affected consumers, and that only a does not provide for a compensation of using a standardized calculation in accordance this nature. to the days without service was maintained.
Inversiones Aguas Metropolitanas 44 Annual Report 2017 Main Suppliers Financial Management IAM’s main suppliers, on an individual basis, at Rentaequipos Leasing S.A. the closing of the 2017 financial year, are the following: El Mercurio S.A.P
Bolsa de Comercio de Santiago
Transportes Nuevo Flash S.A
Liberty Compañía de Seguros Generales
Wunderman Chile Ltda.
Storbox S.A.
Travel Security S.A.
Entel PCS Telecomunicaciones S.A.
Compañía de Petroleos de Chile Copec S.A.
Inversiones Aguas Metropolitanas 45 Annual Report 2017 Dividend Policy
DIVIDENDS PAID PER SHARE Financial Management $66.6566 was the IAM’s bylaws define its dividend policy, which consists (Figures expressed in currency of the date of payment) of distributing 30% of the distributable net profits of the amount paid per share financial year, unless the shareholders unanimously agree during 2017. to distribute a smaller percentage. $ per share 2013 2014 2015 2016 2017 Book value 580.912 577.634 580.626 589.683 593.488 However, if the sum of the distributions of dividends or Profit 57.648 58.711 63.283 74.289 68.719 capital received in cash by the subsidiary Aguas Andinas S. A., (1) (2) (3) (4) (5) during the financial year, minus the operational and Amount paid 42.214899 57.6478 58.7107 63.2833 66.6566 non-operational expenses and provisions of the corresponding financial year, according to the applicable accounting regulations, is an amount exceeding 30%, the (1) Includes one item: a dividend of $42.214899 per share, corresponding to the distribution of company must distribute that surplus as an additional earnings for 2012, paid on May 24,2013. dividend, within 60 working days following the respective (2) Includes two items: an interim dividend of $18.5379 per share, out of 2013 earnings, paid on January 17,2014; and a final dividend of $39.1099 corresponding to the distribution of earnings Ordinary Shareholders’ Meeting, up to the total amount for 2013, paid on May 29,2014. of distributable net profit of the financial year. (3) Includes two items: an interim dividend of $19.4674 per share, out of 2014 earnings, paid on January 16,2015; and a final dividend of $39.2433, corresponding to the distribution of earnings for 2014, paid on May 29,2015. (4) Includes two items: an interim dividend of $20.324 per share, on account of 2015 earnings, paid on January 18.2016; and a final dividend of $42.9593 per share, corresponding to the distribution of earnings for 2015, paid on May 27,2016. (5) Includes two items: an interim dividend of $20.0353 per share, out of 2016 earnings, paid on January 23,2017; and a final dividend of $45.6213 per share, corresponding to the distribution of earnings for 2016, paid on May 25,2017.
Inversiones Aguas Metropolitanas 46 Annual Report 2017 2017 Summary of Distributable Distribution to Profit Shareholders
Distributable Profits M$ Type Year Closing date Payment date Amount per share Net income for the 2017 financial year 68,718,709 Interim dividend 2005 21-09-05 27-09-05 $ 10.97 Accumulated distributable earnings 7,632,649 Final dividend 2005 23-05-06 29-05-06 $ 5.97 Provisional dividends based on 2017 earnings -21,035,300 Capital distribution - 08-06-06 15-06-06 $ 33.61 Interim dividend 2006 21-10-06 27-10-06 $ 14.13 Remaining distributable earnings 55,316,058 Final dividend 2006 16-05-07 23-05-07 $ 8.85 % of dividends distributed over liquid earnings of the year 30.61% Capital distribution - 19-07-07 25-07-07 $ 19.51 Interim dividend 2007 19-10-07 25-10-07 $ 14.53
Final dividend 2007 23-05-08 29-05-08 $ 9.74 Financial Management Capital distribution - 19-06-08 25-06-08 $ 23.24 Interim dividend 2008 25-10-08 03-11-08 $ 15.30 Final dividend 2008 18-06-09 24-06-09 $ 12.91 Capital distribution - 19-06-09 25-06-09 $ 24.22 Interim dividend 2009 19-11-09 25-11-09 $ 16.00 Final dividend 2009 13-05-10 19-05-10 $ 44.68 Interim dividend 2010 18-11-10 24-11-10 $ 16.34 Final dividend 2010 18-05-11 25-05-11 $ 34.66 Interim dividend 2011 19-11-11 25-11-11 $ 17.02 Final dividend 2011 18-05-12 25-05-12 $ 37.91 Interim dividend 2012 09-11-12 15-11-12 $ 17.76 Final dividend 2012 17-05-13 24-05-13 $ 42.21 Interim dividend 2013 11-01-14 17-01-14 $ 18.54 Final dividend 2013 23-05-14 29-05-14 $ 39.11 Interim dividend 2014 10-01-15 16-01-15 $ 19.48 Final dividend 2014 23-05-15 29-05-15 $ 39.24 Interim dividend 2015 12-01-16 18-01-16 $ 20.32 Final dividend 2015 20-05-16 27-05-16 $ 42.96 Interim dividend 2016 17-01-17 23-01-17 $ 21.04 Final dividend 2016 19-05-17 25-05-17 $ 45.62 Interim dividend 2017 23-01-18 29-01-18 $ 21.04
Inversiones Aguas Metropolitanas 47 Annual Report 2017 Share Transactions
As of December 31, 2017, the Transaction of shares of share capital of Inversiones majority shareholders and related persons Aguas Metropolitanas S. A. Financial Management consisted of 1,000,000,000 During the financial year, share transactions which were characterized as financial investments were shares, fully subscribed and carried out by related persons. paid-for.
Name Transaction Date reported Type of Sale Purchase Unit price Total amount of Observations Date to the SVS transaction in Pesos the transaction (now CMF) in Pesos Luis Faúndez 18/12/2017 19/12/2017 E 8,892 1,130 10,047,960 Reported by Mr Luis Faúndez Pérez Pérez, Executive of Aguas Andinas Inmobiliaria 17/10/2017 24/10/2017 A 115,988 1,145 132,806,260 Reported by Mr. Herman Chadwick e Inversiones Piñera, Named Director of IAM Alcántara S.A. Marcelo 06/09/2017 06/09/2017 E 2,802 1,089 3,051,378 Reported by Mr. Marcelo Tokman Tokman Ramos, Alternate Director of IAM Marcelo 06/09/2017 06/09/2017 E 6,752 1,088 7,346,176 Reported by Mr. Marcelo Tokman Tokman Ramos, Alternate Director of IAM Marcelo 09/08/2017 11/08/2017 A 579 1,121 649,059 Reported by Mr. Marcelo Tokman Tokman Ramos, Alternate Director of IAM Marcelo 17/01/2017 17/01/2017 A 5,574 990 5,518,260 Reported by Mr. Marcelo Tokman Tokman Ramos, Alternate Director of IAM Marcelo 17/01/2017 19/01/2017 A 5,574 990 5,518,260 Reported by Mr. Marcelo Tokman Tokman Ramos, Alternate Director of IAM
Inversiones Aguas Metropolitanas 48 Annual Report 2017 Secondary market share transactions
SANTIAGO STOCK EXCHANGE 2017 MARKET PRESENCE
2017 Average price (CLP$) Units Amount (CLP$) Total 1st quarter 975.16 36,817,218 35,902,636,841 Total 2nd quarter 1,077.24 25,846,158 27,842,543,553
rd 99.44% Total 3 quarter 1,109.13 29,033,880 32,202,457,913 Total 1st Total 4th quarter 1,092.35 28,671,012 31,318,786,140 quarter 2017 1,057.31 120,368,268 127,266,424,447 Financial Management ELECTRONIC STOCK EXCHANGE 99.44% Total 2nd 2017 Average price (CLP$) Units Amount (CLP$) quarter Total 1st quarter 979.39 1,273,792 1,247,540,253 Shares transactions Shares Total 2nd quarter 1,077.83 968,330 1,043,690,589 Total 3rd quarter 1,109.79 1,842,128 2,044,367,236 Total 4th quarter 1,070.65 1,395,639 1,494,241,821 100.00% 2017 1,063.86 5,479,889 5,829,839,899 Total 3rd quarter
BROKER EXCHANGE – STOCK EXCHANGE
2017 Average price (CLP$) Units Amount (CLP$) Total 1st quarter No transactions 100.00% th Total 2nd quarter 1,053.23 4,315 4,544,687 Total 4 quarter Total 3rd quarter No transactions Total 4th quarter 1,155.24 20,510 23,694,070 2017 24,825 28,238,757 Note: Market presence is calculated based on what has been stipulated by the General Norm N°327 of the CMF. It considers the transactions which have been conducted in thr Santiago Stock Exchage, the Electronic Exchange and Valparaiso Stock Exchange until the day prior to the stipulated date.
Inversiones Aguas Metropolitanas 49 Annual Report 2017 Corporate Governance
Inversiones Aguas Metropolitanas 50 Annual Report 2017 Board of Directors Corporate Governance IAM’s Board of Directors It has seven named members, each of whom has its respective alternates, who can replace them definitively is the main corporate in case of vacancy, and temporarily in case of absence governance body of or temporary impediment. All are elected by the General the Company, which Shareholders’ Meeting taking into consideration their competencies and suitability for the position. establishes strategic guidelines and oversees Upon election, each director receives an induction on the company management. business, risks, policies and procedures, as well as key accounting principles and legal framework. They also have the necessary means to receive external advice for the proper performance of their functions, if so required.
Directors serve for three years. At the end of that period, the Board of Directors must be completely renewed. Notwithstanding the foregoing, the Board of Directors may be revoked in its entirety before the expiration of its term, by resolution of the Ordinary or Extraordinary Shareholders’ Meeting, in which case the same meeting shall elect the new Board of Directors. Consequently, the individual or collective revocation of one or more directors is not applicable.
Directors may be re-elected indefinitely and may be shareholders of the company.
Inversiones Aguas Metropolitanas 51 Annual Report 2017 Operation of the Board of Directors In the June session, Mr. Carlos Díaz, a prominent Current Board of Directors The Board of Directors meets in ordinary and commercial engineer from the Pontificia Universidad extraordinary sessions. The first meetings are Católica de Chile, Master in Economics from the University The current Board of Directors was elected for a three-year held on predetermined dates by the Board of of California, USA, made a presentation on the main risk term, and its functions began on April 27, 2017. Directors itself and there is at least one meeting management tools and the role that the Board of Directors per month. The second meetings are held when plays in said management. summoned by the CEO on their own initiative or at the request of one or more directors, after the CEO has qualified the need for the meeting, Name Nationality Tax ID Role Profession Last First Election Renewal to the Board unless it is requested by an absolute majority of the directors. In either case, the quorum for Felipe Larrain Aspillaga Chilean 6.922.002-9 Chairman/President Civil Engineer 27-04-17 30-04-14 the Board of Directors to meet is an absolute Alberto Muchnick Mlynarz Chilean 6.447.493-6 Vice-President Commercial Engineer 27-04-17 21-04-10 majority of its members and the resolutions are (Independent) taken with the favorable vote of the absolute Herman Chadwick Piñera Chilean 4.975.992-4 Named Director Lawyer 27-04-17 27-04-06 majority of the attending directors, except for those agreements that according to the by- Ignacio Guerrero Gutiérrez Chilean 5.546.791-9 Named Director Commercial Engineer 27-04-17 27-04-06
laws of Inversiones Aguas Metropolitanas S. Carlos Mladinic Alonso Chilean 6.100.558-7 Named Director Commercial Engineer 31-05-17 30-04-14 Corporate Governance A., the law and its regulations or other special Hernán Cheyre Valenzuela Chilean 6.375.408-0 Named Director Commercial Engineer 27-04-17 27-04-17 provisions require a higher majority. Ana Girós Calpé French 0-E (Foreigner) Named Director Industrial Engineer 27-04-17 27-04-17 Directors’ training during 2017 Hugo Silva Raveau Chilean 6.863.031-2 Alternate Director Industrial Mechanical 27-04-17 27-04-17 Technician The Board of Directors of The Board In order to keep the members of the Board Giorgianna Cúneo Queirolo Chilean 9.667.948-3 Alternate Director Publicist 27-04-17 30-04-14 of Directors informed and up to date, so (Independent) that they can carry out their functions on Rodrigo Castro Fernández Chilean 10.570.170-5 Alternate Director Economist 27-04-17 27-04-06 the basis of advances and trends, and in Marcelo Tokman Ramos Chilean 16.654.431-9 Alternate Director Commercial Engineer 27-04-17 21-04-10 accordance with NCG N°385 of the Financial Market Commission (previously known as Jorge Cosme Sagnier Spanish 24.394.856-8 Alternate Director Graduate in Business 27-04-17 27-04-17 Superintendence of Securities and Insurance), Administration and Management during 2017 different training instances were held, such as informative talks and the delivery Silvina Somasco Mozziconacci French 0-E (Foreigner) Alternate Director National Public Accountant 27-04-17 27-04-17 of relevant material.
Each of the directors was provided with a set of Attendance to Board books prepared by the Corporate Governance meetings in 2017 Center of the Pontificia Universidad Católica de Chile, which deal with various relevant subjects such as the latest trends in sustainability and Corporate Governance, risk management 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% in companies and national case-law in the different related domains. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Inversiones Aguas Metropolitanas 52 Annual Report 2017 Corporate Governance 1 0 > years 70 > 12 years Annual Report 2017 Annual Report 5 and 70 Between 61 Between 3 years 9 to 12 9 to 1 and 60 Between 51 Between 2 6 to 9 years 3 6 and 50 Between 41 41 Between 3 3 to 3 to 0 6 years Between Between 30 and 40 10 5 0 < 30 years < 3 years NUMBER OF DIRECTORS BY AGE BY DIRECTORS NUMBER OF SENIORITY BY DIRECTORS NUMBER OF NUMBER OF DIRECTORS BY NATIONALITY BY DIRECTORS NUMBER OF 53
3 Role Role Duration 3 7 6 Directors Directors Alternate Alternate Alternate Alternate 10 7 7 Named Named Named Named Directors Directors NUMBER OF CURRENT DIRECTORS CURRENT NUMBER OF NUMBER OF DIRECTORS BY BYLAWS BY DIRECTORS NUMBER OF NUMBER OF DIRECTORS BY GENDER BY DIRECTORS NUMBER OF
Inversiones Aguas Aguas Metropolitanas Inversiones
Composition and Diversity Composition Board of Directors Directors of Board The Board of Directors of Board The Directors’ Committee Corporate Governance In accordance with the Main functions and powers The Directors’ Committee has the following powers and provisions of Article 50 duties: bis of Law No. 18,046 on public corporations, - Examine the reports of the external auditors, the balance sheet and other financial statements, and to express IAM S. A. has a Directors’ an opinion on them prior to their submission to the Committee, which is shareholders. also part of its corporate - Propose to the Board of Directors names for external auditors and private risk classifiers. governance. - Examine and report on the history of the operations covered in Title XVI. - Examine the compensation systems and compensation plans of the company’s managers, chief executives and workers. - Prepare an annual management report, including its main recommendations to shareholders.
Composition As required by the Law, the Directors’ Committee must be composed of three members, the majority of whom must be independent. It should be noted that the Chairman of the Board of Directors may not serve on the committee or its subcommittees, unless he is an Independent Director.
Inversiones Aguas Metropolitanas 54 Annual Report 2017 Operation Current Directors’ Committee In accordance with Law 18.046 and the internal regulations committee, it has ordinary sessions Currently, IAM’s Directors’ Committee consists of the once a month and extraordinary sessions director who is independent of the controller, Alberto whenever it is required, in order to address the Muchnick, and by Ignacio Guerrero and Herman matters entrusted to it by Article 50 bis of Law Chadwick, who were appointed by the independent 18.046 on Corporations. The minimum quorum director. The Committee is chaired by Alberto for a meeting is two members. Muchnick with the attorney Sebastián Oddó serving as acting secretary. Agreements In accordance with the law, the deliberations, agreements and organization of the Attendance to the meetings of Committee must be governed by the rules the Directors’ Committee in 2017 regarding Board of Directors meetings of the corporation. The Committee shall communicate to the Board of Directors the manner in which it will request information, as well as its agreements. 100% 100% 100% 100% Corporate Governance
Jan Feb Mar Apr Directors’ Committee Directors’ 100% 100% 100% 100%
May Jun Jul Ago
100% 100% 100% 100%
Sep Oct Nov Dec
Inversiones Aguas Metropolitanas 55 Annual Report 2017 2017 Directors’ 3. Examine the reports of the external Committee report auditors, balance sheet and other financial statements of Inversiones Aguas Metropolitanas S.A., drafted quarterly In compliance with what is provided for in Review the internal control letter of the Article 50 bis, paragraph eight of Law 18.046 external auditors issued in December 2017. on open corporations, the activities that the Committee developed during the annual 4. Review the internal control letter of the financial year ending December 31, 2017 as external auditors issued in December 2017. well as the expenses incurred upon by its advisors are reported. 5. Review the external audit plan for the 2017 financial year. I. Composition and Operation of the Committee
6. Review the 2017 Investment Plan for the Inversiones Aguas Metropolitanas S.A.’s Aguas Group. Board of Directors’ Committee was formed by the independent director of the Controller, 7. Review the reports by the Company and Mr. Alberto Muchnick and by Mr. Herman Affiliates Risk Rating Agencies. Chadwick and Mr. Ignacio Guerrero, who were
appointed by the independent director. Corporate Governance 8. Review the price evolution of the share after the approval by the House of Representatives The Committee is presided by Mr. Alberto of the Bill Bulletin No. 10.795-33. Muchnick and the attorney Mr. Sebastián Oddó acts as Secretary. 9. Review the background information on
Directors’ Committee Directors’ the agreement proposal between Aguas Since the Committee was incorporated it holds Andinas and Smapa. sessions once a month to deal with matters that it is entrusted to it by Article No. 50 bis of Law 18,046 10. Examine the background information and others of general interest for the company. linked to the profits distribution.
II. Annual Main Activities 11. Examine the background information on the distribution of the Company’s provisory The main activities developed by the Committee dividend. during the 2017 financial year were as follows:
12. Review the expenses of the Aguas Group. 1. Examine the reports of the external auditors, balance sheet and other III. Board of Directors’ Committee Proposal financial statements of Inversiones Aguas and Expenses Metropolitanas S.A. of the financial year
ending on December 31, 2017. In the General Shareholders’ Meeting held in April 2017, the Board of Directors’ Committee 2. Propose to the Board of Directors on the was awarded an annual budget amounting to external auditors and risk rating agencies 2,000 Unidades de Fomento, which was not for the 2017 financial year. used during this financial year.
Inversiones Aguas Metropolitanas 56 Annual Report 2017 Remuneration and Expenses BOARD OF DIRECTORS’ REMUNERATION IN THOUSANDS OF PESOS Director Role Fixed Variable 2016 2017 2016 2017 Felipe Larrain Aspillaga President/Chairman 25,056 31,906 31.356 48,353 Herman Chadwick Piñera Named Director 18,757 19,144 18,757 20,723 Alberto Muchnick Mlynarz Vice-President 25.009 25,525 31,261 34,538 Pablo Pérez Cruz Named Director 18,757 4,751 14,086 6,330 Ignacio Guerrero Gutiérrez Named Director 18.757 19,144 15,607 19,127 Pursuant to the provisions of Law No. 18,046, the Ordinary Hernán Cheyre Valenzuela Named Director - 14,393 - 14,393 Of the Board of General Shareholders Meeting held on April 30,2017, Rodrigo Azócar Hidalgo Named Director - 3,192 - 3,192 Directors and approved the remuneration of the Board of Directors, the Directors’ Committee and its budget of expenses for the Marcelo Tockman Ramos Alternate Director 18,757 11,138 7,807 3,163 Corporate Governance the Directors’ 2017 financial year. Pedro Butazzoni Álvarez Alternate Director 18,757 4,751 - - Rodrigo Castro Fernández Alternate Director 18,757 19,144 3,149 1,596 Committee The remuneration of the Board of Directors is divided Jorge Bande Bruck Alternate Director 18,757 4,751 3,128 6,330 into two types: a monthly fixed amount of 100 UF for the Chairman, 80 UF for the Vice-Chairman and 60 UF for the Giorgianna Cúneo Queirolo Alternate Director 18,757 19,144 - - Chief Executive Officers and alternates; and a variable Carlos Mladinic Alonso Alternate Director 18,757 19,144 - 11,201 amount of 140 UF for the Chairman, 100 UF for the Vice- Hugo Silva Raveau Alternate Director - 14,393 - - Chairman, 60 UF for the Chief Executive Officers and 60 UF for alternate directors, when they replace the incumbents. Totales 218,878 210,520 125,151 168,946
The expenses of the Board of Directors of IAM during the DIRECTORS’ COMMITTEE REMUNERATION IN THOUSANDS OF PESOS 2017 financial year were Th$130,505 pesos. Director Role Remuneration The remuneration of the Director’s Committee for 2017 was 2016 2017 as follows: a fixed monthly remuneration of 25 UF and a Alberto Muchnick Mlynarz Vice-President 15,630 15,954 variable remuneration for attending each meeting of 25 UF. Herman Chadwick Piñera Named Director - 11,324 In addition, a budget of 2,000 UF was agreed upon, which Ignacio Guerrero Gutiérrez Named Director 14,318 15,289 was not used during the financial year. Marcelo Tockman Ramos Alternate Director 11,068 2,640 The detail of the amounts paid is as follows (in thousands Rodrigo Castro Fernández Alternate Director 9,127 8,642 of pesos): Giorgianna Cúneo Queirolo Alternate Director 7,815 7,977 Totales 57,958 61,826
Inversiones Aguas Metropolitanas 57 Annual Report 2017 Remuneraciones y gastos InversionesMetropolitanas Aguas pay gap Gender senior executives Compensation of subsidiaries. the gender pay gapat aconsolidated level withallits salary gapby gender. However, itispossible to submit from different positions,itisnot possible to calculate its Given that IAMat theindividuallevel hasonly four people service were recorded. During 2017 nocompensation payments for years of remuneration. to fixed remuneration and$29million to variable previous year. Of this value, $301millioncorresponded in theperiodwas $330million,a16% decrease over the At theindividuallevel, total remuneration paidby IAM executives payroll consisted of 2professionals. As of December 31,2017, IAM’s senior management and 58 AVERAGE GROSS BASE SALARY BY STRATA REMUNERATION FOR PRINCIPAL EXECUTIVES IAM’S SENIOREXECUTIVES Principal Executives Remuneration for Detail Laureano CanoIniesta 25.374.056-6 Name PatricioSolorza Andrés Acuña Line Managers Senior Executives Professionals Operators Administrative Staff Technicians Total Strata 2016 2017 10.696.150-6 345 301 Tax ID Fixed Manager remuneration versusmale Ratio of female remuneration 103.40% 102.69% 138.25% 127.29% 82.46% 88.79% 90.41%
Accounting and TaxAccounting 2016 2017 49 29 Variable Role CEO between female andmale Percentage difference remuneration -17.54% 38.25% -9.59% -11.21% 27.29% 3.40% 2.69% 2016 2017 Annual Report 2017 Date inRole 394 330 09-05-16 01-10-16
Total Corporate Governance Corporate DIVERSITY IN MANAGEMENT* DIVERSITY WITHIN THE ORGANIZATION*
NUMBER OF PEOPLE BY GENDER NUMBER OF PEOPLE BY NATIONALITY NUMBER OF PEOPLE BY GENDER NUMBER OF PEOPLE BY NATIONALITY
80 13 79 14 1,644 463 2,054 53
NUMBER OF PEOPLE BY AGE NUMBER OF PEOPLE BY AGE Corporate Governance
< 30 years Between 30 Between 41 Between 51 Between 61 > 70 years < 30 years Between 30 Between 41 Between 51 Between 61 > 70 years and 40 years and 50 years and 60 years and 70 years and 40 years and 50 years and 60 years and 70 years 0 7 49 27 10 0 292 705 576 424 108 2
NUMBER OF PEOPLE BY SENIORITY NUMBER OF PEOPLE BY SENIORITY
< 3 years Between 3 Between 6 Between 9 > 12 years < 3 years Between 3 Between 6 Between 9 > 12 years and 6 years and 9 years and 12 years and 6 years and 9 years and 12 years
15 7 9 8 54 646 299 251 138 773
*Given that IAM only has four employees, these figures are for the consolidated group.
Inversiones Aguas Metropolitanas 59 Annual Report 2017 Other Corporate Governance Instances
Code of Ethics they are poorly resolved could end up affecting Corporate Governance Evaluation Investor Relations IAM has a Code of Ethics, which contains the social interest. The Board of Directors of the Company agreed to IAM’s Investor Relations area is responsible for fundamental principles of the Company: Complying have a formal, biennial, continuous improvement managing relations and providing timely information with laws and regulations, rooting the culture Crime Prevention Model procedure to detect and implement possible to the Company’s investors and shareholders. of integrity, showing loyalty and honesty, and IAM has a Crime Prevention Model, which allows improvements in its organization and operation. Corporate Governance respecting all people. it to certify compliance with the supervisory and The contact in this area is duly identified on the management duties of the Company. This procedure considers an expert external advisor website of the Company, www.iam.cl These principles should be applied to shareholders, to detect and implement these strengths. clients, competitors, the local community and the This model establishes rules, protocols and In order to provide information on an ongoing and environment. procedures such as crime prevention measures that Anti-Corruption Policy up-to-date basis, this website includes financial every person in the Company, including suppliers IAM’s Code of Ethics acknowledges integrity as one analysis tools, corporate presentations, along with For more information on the Code of Ethics, please and contractors must follow. For greater control, of the basic principles of its corporate culture, and related news and events. visit www.iam.cl the Board of Directors appointed a person in charge disapproves of corruption in all its forms. of ensuring compliance with the model, called the The area holds permanent individual meetings and Code of Conduct Crime Prevention Officer. The company argues that equity, integrity and conference calls with institutional investors, both Within the framework of the implementation of good impartiality must rule over the relations between local and international, and takes part in local and corporate governance standards, IAM has a Code Dissemination of Information on Corporate workers, managers and representatives, as well as international conferences. of Conduct applicable to all the Directors of the Governance Practices (NCG N°385) those that are generated with all those natural or Company regarding conflict of interest situations In December 2015, the Board of Directors of IAM physical persons who relate directly or indirectly they may face. approved a series of policies, procedures and with IAM, whether they come from the public or protocols under NCG No. 385, which were included private world. This code contains, among others: in the document entitled “Compendium of Corporate - Identification of the main situations that make up Governance Policies and Procedures,” which were In this context, IAM’s Anti-Corruption Policy is a conflict of interest. reported to the Financial Market Commission intended to serve as a guide for the performance - Mechanisms to avoid conflicts of interest. (previously known as Superintendence of Securities of its personnel, guiding them regarding what the - Procedure for declaring conflicts of interest. and Insurance) on March 31,2016, which are currently company expects and requires when dealing with - How to resolve conflicts of interest. in force in the company. public officials and in general with third parties, including suppliers and the internal collaborators of The code, additionally addresses situations that, This compendium is published in the IAM website. the Company. although not specifically contained in the law, if
Inversiones Aguas Metropolitanas 60 Annual Report 2017 Material Events
On March 30 2017, the Financial Market That during the morning, the 12th Ordinary Shareholder Meeting of the Commission (previously known as Company was held, in which matters pertaining to it were discussed, Superintendence of Securities and Insurance) was among them, the renewal of the Board of Directors and the following informed of the following, that Mr. Pablo Pérez persons were elected: Cruz submitted his resignation to the position of Corporate Governance Named Director of the company, being replaced by Named Director Alternate Director his Alternate Director, Mr. Miguel Ángel Zarza, in his Felipe Larrain Aspillaga Hugo Silva Raveau capacity of director since that date. Alberto Muchnick Mlynarz Giorgianna Cúneo Queirolo On March 30 2017, the Financial Market Herman Chadwick Piñera Jorge Cosme Sagnier Commission (previously known as Superintendence Ignacio Guerrero Gutiérrez Rodrigo Castro Fernández of Securities and Insurance) was informed of the following, that at its ordinary meeting held on March Rodrigo Azócar Hidalgo Carlos Mladinic Alonso 29, 2017, the Board of Directors unanimously agreed Ana Girós Calpe Silvina Somasco Mozziconacci to call for an Ordinary Shareholder Meeting for April Hernán Cheyre Valenzuela Marcelo Tokman Ramos 27, 2017, at 10:00 a.m., at Av. Presidente Balmaceda N°1398 tenth floor, Santiago, to learn about and provide an opinion on the matters pertaining to an It is hereby noted that Alberto Muchnick Mlynarz On May 31 2017, the Financial Market Commission Directors, in its ordinary session celebrated on this ordinary shareholder meeting. and his respective Alternate Giorgianna Cúneo (previously known as Superintendence of same date, has unanimously agreed to distribute Queirolo were elected as independent directors. Securities and Insurance) was informed of the CLP $21,035,300,000, in account of the earnings On April 27 2017, the Financial Market Commission following, That Mr. Rodrigo Azócar Hidalgo from 2017, as an interim dividend. (previously known as Superintendence of The Board of Directors of the Company then met, submitted his resignation to the position of Full Securities and Insurance) was informed of the a session in which it was unanimously agreed to Director of the company due to personal reasons, Due to this, the 29th interim dividend will amount to following, That in accordance with the provisions appoint Mr. Felipe Larrain Aspillaga as Chairman and and Mr. Carlos Mladinic Alonso replaced him in the CLP $21.0353 per share and will be distributed from of Article 9 paragraph 2 of Article 10 of Law Mr. Alberto Muchnick Mlynarz as Vice-Chairman. position of Named Director since that date. the 29th of January 2018. 18.045, as well as in General Regulation No. 30 of the Superintendence, the following information It was also agreed that Alberto Muchnick Mlynarz, On December 13 2017, the Financial is communicated as an essential fact regarding Ignacio Guerrero Gutiérrez and Herman Chadwick Market Commission (previously known as the company, its businesses, its public offering Piñera and their respective alternates will be Superintendence of Securities and Insurance) securities or their offer: members of the Directors’ Committee. was informed of the following, that the Board of
Inversiones Aguas Metropolitanas 61 Annual Report 2017 General Information
Inversiones Aguas Metropolitanas 62 Annual Report 2017 Company Identification
Name: Inversiones Aguas Metropolitanas S.A. Stock exchange information Legal incorporation of the company Legal Address: Av. Apoquindo N° 4800, Torre II, piso Stock exchange code 20, Las Condes, Chile. Unique Series: IAM The company was incorporated by a public deed Tax ID: 77.274.820-5 dated on May 19, 1999, granted in the Notary Public’s Phone Number: (56-2) 2739 6600 Shareholder information office in Santiago de Santiago by Juan Ricardo San Central Securities Repository
Martín Urrejola. An extract of it was registered in General Information Activity: Investment in shares of the Chilean Address: Huérfanos 770, 22nd floor, Santiago, Chile. pages 11.226, N° 9.027, in the Registry of Commerce corporation Aguas Andinas S. A.; and the provision Telephone: (56-2) 2393 9003 of the Real Estate Registrar of Santiago of the year of all kinds of advice, consultancies and services Fax: (56-2) 2393 9101 1999, and it was published in the Official Gazette on regarding the transfer of technology and know- May 22, 1999. how, technical assistance, business administration Offices of the Company and projects, especially those regarding the Address: Av. Apoquindo N° 4800, Torre II, piso 20, The articles of incorporation have been amended management and operation of businesses related to Las Condes, Chile. several times, among which the bylaw reform water utility services. Telephone: (56-2) 2739 6600 contained in a public deed dated July 15, 2005, Email [email protected] granted in the Public Notary office in Santiago de Registration in the Securities Registry: N° 0912, Santiago by Mr. Iván Torrealba Acevedo, through dated on August 19, 2005. which its shareholders resolved, pursuant to article 96. Law No. 18,046 on Public Corporations, to change the nature or corporate type of the Company, transforming it into a public corporation, a legal continuation of its legal identity. An extract of this modification was recorded in pages 25.668, No. 18.587, in the Trade Registry of the Real Estate Registrar of Santiago 2005, and published in the Official Gazette on July 25, 2005.
Inversiones Aguas Metropolitanas 63 Annual Report 2017 Water Utility Regulation
The Chilean water utility (sanitation) sector is _ Law that Creates the Superintendence of governed by a set of laws and regulations. The main Sanitation Services (Law Nº 18.902 of 1990). legal bodies are: Establishes the functions of this service.
General Sanitation Services Law (DFL MOP Nº 382 _ Subsidy Law for the Payment of Potable of 1988). It contains the provisions governing the Water Consumption and Sewerage Services. General Information system of concessions and the activity of water (Law Nº 18.778 de 1989). It establishes a utility service providers. subsidy for the payment of the consumption of potable water and sewerage. _ Regulations of the General Sanitation Services Law (DS MOP Nº 1199/2004, published on _ Regulation of the Subsidy Law (DS Hacienda November 2005). It establishes the regulatory Nº 195 of 1998). It contains the regulatory rules that allow the application of the General provisions for the application of the Subsidy Law of Health Services (replaces the DS MOP Nº Law. 121 de 1991). _ DS MOP N° 214/05, Regulation of Article 67° _ Sanitation Services Rates Law (DFL MOP of the General Law of Sanitation Services. It Nº 70 of 1988). It contains provisions governing establishes the requirements for public tender the setting of potable water and sewerage rates processes, which are mandatory for water and reimbursable financing contributions. utility service providers.
_ Regulations of the Sanitation Services Rates Law (DS MINECON Nº 453 of 1990). It contains the regulatory rules that allow the application of the Law on Rates for Water Utility Services, including the methodology for calculating rates and the administrative procedures.
Inversiones Aguas Metropolitanas 64 Annual Report 2017 Responsibility Statement
The Directors of Inversiones Aguas Metropolitanas S. A. Felipe Larrain Aspillaga Hernán Cheyre Valenzuela together with their CEO, signatories of this RUT: 6.922.002-9 RUT: 6.375.408-0 declaration, are responsible under oath for the Presidente Director truthfulness of the information provided in this Annual Report, in accordance with the provisions of General Rule N° 30 of the Financial Market General Information Commission (previously known as Superintendence of Securities and Insurance). Alberto Muchnick Mlynarz Ana Girós Calpé RUT: 6.447.493-6 RUT: 0-E (Extranjera) Vicepresidente Directora
Herman Chadwick Piñera Laureano Cano Iniesta RUT: 4.975.992-4 RUT: 25.374.056-6 Director Gerente General
Carlos Mladinic Alonso RUT: 6.100.558-7 Director
Inversiones Aguas Metropolitanas 65 Annual Report 2017 Consolidated Financial Statements
Inversiones Aguas Metropolitanas 66 Annual Report 2017 Consolidated Financial Statements Annual Report 2017 Annual Report OPINION financial the consolidated opinion, In our in fairly, present above to referred statements of the financial position respects, all material S.A., and its Metropolitanas Aguas Inversiones and 2016, 2017 31, December subsidiaries as of cash their and operations their of and the results with ended in accordance then years the for flows Standards. Financial Reporting International express no such opinion. An audit also includes An audit also includes no such opinion. express accounting of the appropriateness evaluating significant of policies used and the reasonableness as management, made by estimates accounting the of presentation the overall as evaluating well statements. financial consolidated have we the audit evidence that believe We a to provide and appropriate is sufficient obtained audit opinion. our basis for AUDITOR’S RESPONSIBILITY AUDITOR’S on these an opinion express is to responsibility Our based on our statements financial consolidated with audits in accordance our conducted We audits. in Chile. Accepted Generally Standards Auditing plan and perform we that require Those standards about assurance reasonable obtain the audit to are statements financial the consolidated whether misstatement. material from free obtain to procedures performing An audit involves disclosures and about the amounts audit evidence The statements. financial in the consolidated depend on the auditor’s selected procedures the risks of including the assessment judgment, the consolidated of misstatement material of or to fraud due whether statements, financial the assessments, In making those risk error. to relevant control internal considers auditor of presentation and fair preparation the entity’s in order statements financial the consolidated appropriate are that design audit procedures to the purpose for but not in the circumstances, an opinion on the effectiveness expressing of we Accordingly, control. internal the entity’s of 67 Shareholders and Directors Shareholders S.A. Metropolitanas Aguas Inversiones consolidated the accompanying audited have We Aguas Inversiones of statements financial (“the S.A., and its subsidiaries Metropolitanas which comprise the consolidated Company”), December of position as financial of statement consolidated and the related and 2016, 31, 2017 income, changes in comprehensive of statements years the for and cash flows equity, shareholders’ the financial to notes then ended, and the related statements. MANAGEMENT’S RESPONSIBILITY RESPONSIBILITY MANAGEMENT’S STATEMENTS FINANCIAL THE FOR and the preparation for is responsible Management financial these consolidated of presentation fair with International in accordance statements This responsibility Standards. Financial Reporting and includes the design, implementation, the to relevant control internal of maintenance consolidated of presentation and fair preparation material from free are that statements financial error. or fraud due to whether misstatement,
Gastón Villarroel Villarroel Gastón O. spa audit ey 2018 de 28 de marzo Santiago, (Translation of the report originally issued in Spanish) originally the report of (Translation Report Independent Auditor’s Auditor’s Independent Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial EQUITY AND LIABILITIES Position Statements CURRENT LIABILITIES Note 31-12-2017 Th$ 31-12-2016 Th$ As of December 31, 2017 and 2016 (Thousands of Pesos - Th$) Other financial liabilities 8 63,045,352 43,629,749 Trade and other accounts payable 8 115,876,089 112,312,020
Accounts payable to related entities 9 34,482,682 28,193,771
Other provisions 15 2,603,819 2,628,225
Tax liabilities 12,088 2,861,544 ASSETS Provisions for employee benefits 19 5,531,516 5,419,742
CURRENT ASSETS Note 31-12-2017 Th$ 31-12-2016 Th$ Other non-financial liabilities 16,267,599 17,305,010 Cash and cash equivalents 7 19,803,208 66,122,006 Total current liabilities other than 237,819,145 212,350,061 Other non-financial assets 1,373,386 338,315 liabilities included in disposal liability groups classified as held for sale Trade and other accounts receivable 8 113,532,427 106,303,061 Total Current Liabilities 237,819,145 212,350,061
Accounts receivable from related 9 560,234 1,275,867 Consolidated Financial Statements parties NON CURRENT LIABILITIES Inventories 10 3,925,378 3,309,945 Other financial liabilities 8 802,978,167 808,003,406
Tax assets 12,542,440 5,986,263 Other accounts payable 8 982,075 949,408
Total current assets other than assets 151,737,073 183,335,457 Other provisions 15 1,301,105 1,277,574 or groups of assets for disposal, classified as held for sale or held for Deferred tax liabilities 24 38,089,361 38,419,238 distribution to owners Provisions for employee benefits 19 15,328,801 16,032,827 Total Current Assets 151,737,073 183,335,457 Other non-financial liabilities 8,057,759 8,592,004 NON CURRENT ASSETS Total Non Current Liabilities 866,737,268 873,274,457 Other financial assets 8 7,807,734 7,792,445 Total Liabilities 1,104,556,413 1,085,624,518 Other non-financial assets 895,341 886,496 EQUITY Rights receivable 8 2,276,380 2,082,334 Share capital issued 3 468,358,402 468,358,402
Intangible assets other than capital 11 227,084,499 227,951,484 Retained earnings 3 162,398,166 158,593,033 gains Capital gains 12 307,581,431 307,581,431 Other equity interests 3 -37,268,417 -37,268,417
Property, plants and equipment 13 1,351,787,934 1,294,600,803 Equity attributable to the owners of the 593,488,151 589,683,018 controller Deferred tax assets 24 20,200,593 20,231,924 Non-controlling interests 4 371,326,421 369,154,838
Total Non Current Assets 1,917,633,912 1,861,126,917 Total Equity 964,814,572 958,837,856
Total Assets 2,069,370,985 2,044,462,374 Total Equity and Liabilities 2,069,370,985 2,044,462,374
The attached notes 1 to 28 are an integral part of these consolidated financial statements.
Inversiones Aguas Metropolitanas 68 Annual Report 2017 Comprehensive Consolidated Income Statements by Source
For the financial years ended December 31, 2017 and 2016 (Thousands of Pesos - Th$)
INCOME STATEMENT BY SOURCE COMPREHENSIVE INCOME STATEMENT
Note 31-12-2017 Th$ 31-12-2016 Th$ Note 31-12-2017 Th$ 31-12-2016 Th$ Revenue from ordinary activities 17 509,536,405 492,245,134 EARNINGS 142,247,935 153,684,721 Raw materials and consumables used -34,924,904 -33,442,759 Other Comprehensive Income Employee benefit expenses 19 -55,930,210 -54,058,843 Components of other comprehensive income that will not be reclassified to profit Depreciation and amortization 11-13 -74,401,330 -67,016,783 or loss for the financial year before tax. Consolidated Financial Statements expenses Actuarial gains (losses) from defined 19 1,340,799 58,684 Other expenses, by nature 21 -121,290,206 -114,392,606 benefit plans Other (losses) earnings 5 2,608,255 14,594,087 Other comprehensive income that will not be reclassified to income for the 1,340,799 58,684 Financial income 5 6,084,902 6,511,222 financial year, before tax Financial expenses 5 -31,115,703 -27,118,382 Income tax related to defined benefit -362,016 -15,844 plans Exchange rate differences 20 6,907 -20,578 Income taxes relating to components of Results from readjustment units 22 -11,947,203 -20,161,469 other comprehensive income that will -362,016 -15,844 not be reclassified to income for the Earnings before taxes 188,626,913 197,139,023 financial year Income tax expense 24 -46,378,978 -43,454,302 Total other comprehensive income 978,783 42,840 Earnings from continuing operations 142,247,935 153,684,721 Total Comprehensive Income 143,226,718 153,727,561 EARNINGS 142,247,935 153,684,721 Comprehensive income attributable to Earnings attributable to owners of 68,718,709 74,289,195 the controller Comprehensive income attributable to 69,210,275 74,302,732 Earnings attributable to non- owners of the parent company 4 73,529,226 79,395,526 controlling interests Comprehensive income attributable to 74,016,443 79,424,829 non-controlling interests Earnings 142,247,935 153,684,721 Total comprehensive result 143,226,718 153,727,561 Earnings per share Earnings per basic share from 25 68,719 74,289 continuing operations
Earnings per basic share 68,719 74,289
The attached notes 1 to 28 are an integral part of these consolidated financial statements.
Inversiones Aguas Metropolitanas 69 Annual Report 2017 Consolidated Financial Statements 153,645 -889,173 1,566,591 34,191,142 99,531,219 -3,820,405 24,548,806 31,930,864 66,122,006 -75,455,795 101,097,810 -113,196,078 232,773,738 -133,281,684 -93,203,205 -107,639,669 Annual Report 2017 Annual Report 31-12-2016 Th$ 31-12-2016 622,475 402,982 -678500 -1,876,838 67,841,887 43,604,119 66,122,006 19,803,208 -115,692,132 -112,299,077 -46,318,798 111,446,006 -137,595,247 209,351,533 -141,841,373 -113,828,958 31-12-2017 Th$ 31-12-2017 7 Note Proceeds from sale of property, plant and and plant property, of sale from Proceeds equipment (outflows) cash inflows Other activities investment (used in) from Cash flows loans long-term from Proceeds loans short-term from Proceeds as financing classified loans, from Proceeds activities reimbursements Loan Dividends paid activities financing (used in) from Cash flows in cash and cash (decrease) increase Net equivalents beginning of at Cash and cash equivalents the year financial end at Cash and cash equivalents year the financial of Cash flows from (used in) operating activities operating (used in) from Cash flows and equipment plant property, of Purchases received Interest Purchases of intangible assets intangible of Purchases 70 609,395 -627,787 1,591,617 2,338,973 -3,147,849 -18,428,257 575,262,317 -41,357,096 -53,172,002 -51,963,835 -61,341,585 -178,331,738 578,210,685 -284,095,362 31-12-2016 Th$ 31-12-2016 345,631 1,628,715 2,532,452 -2,199,241 -57,101,179 -3,464,095 -50,411,683 592,919,710 -20,265,514 -55,323,690 -72,530,807 597,080,877 -199,309,573 -315,198,537 31-12-2017 Th$ 31-12-2017 Note Payments to and on behalf of employees of and on behalf to Payments Payments for premiums and benefits, annuities and benefits, premiums for Payments underwritten arising from obligations and other policies activities operating for payments Other (used in) activities operating from Cash flows operations Fees from premiums and benefits, annuities and benefits, premiums from Fees benefits policy underwritten and other activities operating for fees Other activities operating from cash payments of Types goods of the supply for suppliers to Payments and services paid Interest received Interest paid (refunded) Income taxes (outflows) cash inflows Other Fees from sales of goods and provision of services of goods and provision of sales from Fees Types of transaction activity fees activity transaction of Types DIRECT CASH FLOW STATEMENTS FLOW CASH DIRECT For the financial years ended on December 31, 2017 and 2016 and 2016 31, 2017 on December ended years financial the For Th$) - Pesos of (Thousands Consolidated Net Cash Cash Net Consolidated Statements Flow Inversiones Aguas Aguas Metropolitanas Inversiones The attached notes 1 to 28 are an integral part of these consolidatedstatements. financial part of an integral 28 are 1 to notes The attached Consolidated Financial Statements
42,840 978,783 5,976,716 15,850,673 153,684,721 142,247,935 -71,844,860 -65,405,142 -72,630,830 -65,246,058 942,987,183 964,814,572 958,837,856 958,837,856 Th$ Th$ Total Total Total Total Equity Equity Annual Report 2017 Annual Report
0 0 29,303 487,217 2,171,583 6,793,999 73,529,226 79,395,526 -71,844,860 371,326,421 -72,630,830 369,154,838 369,154,838 Th$ Th$ 362,360,839 interests interests Non-controlling Non-controlling Non-controlling Non-controlling
0 0 13,537 491,566 3,805,133 9,056,674 74,289,195 68,718,709 -65,405,142 -65,246,058 593,488,151 589,683,018 589,683,018 Th$ Th$ 580,626,344 Equity Equity Equity Equity the controller the controller attributable to to attributable attributable to to attributable
0 0 13,537 491,566 3,805,133 9,056,674 74,289,195 68,718,709 -65,405,142 -65,246,058 162,398,166 149,536,359 158,593,033 158,593,033 Th$ Th$ (loss) (loss) Accrued profit profit Accrued Accrued profit profit Accrued
0 0 0 0 0 0 0 0 0 0 13,537 -13,537 491,566 -491,566 Th$ Th$ plans plans 71 loss reserve in reserve loss loss reserve in reserve loss defined benefit benefit defined defined benefit benefit defined Actuarial gain or gain or Actuarial Actuarial gain or gain or Actuarial
0 0 0 0 0 0 0 0 0 0
-37,268,417 -37,268,417 -37,268,417 -37,268,417 Th$ Th$ in equity in equity Other interest interest Other Other interest interest Other
0 0 0 0 0 0 0 0 0 0 Th$ Th$ 468,358,402 468,358,402 468,358,402 468,358,402 Issued capital Issued Issued capital Issued
3-4 3-4
3 3 3 3 3 3 Note Note Earnings Comprehensive income Comprehensive Total changes in equity Total Other comprehensive result comprehensive Other Final Balance as of 31-12-2016 Final Balance as of Initial Balance as of 01-01-2016 Balance as of Initial Dividends Decrease due to transfers and other and other transfers due to Decrease changes Earnings Comprehensive income Comprehensive Total changes in equity Total Other comprehensive result comprehensive Other Final Balance as of 31-12-2017 Final Balance as of Initial Balance as of 01-01-2017 Balance as of Initial Dividends Decrease due to transfers and other and other transfers due to Decrease changes CHANGES IN EQUITY STATEMENT EQUITY CHANGES IN For the financial years ended on December 31, 2017 and 2016 and 2016 31, 2017 on December ended years financial the For Th$) - Pesos of (Thousands Changes in Equity Statements in Equity Changes Inversiones Aguas Aguas Metropolitanas Inversiones The attached notes 1 to 28 are an integral part of these consolidatedstatements. financial part of an integral 28 are 1 to notes The attached Consolidated Financial Statements Annual Report 2017 Annual Report 87 83 83 82 84 86 116 116 118 127 107 122 122 125 123 132 132 128 128 126 126 126 104 104 108 100
Interests Non-Controlling To Attributable 4. Equity Note And Expenses Income 5. Other Note Companies Subsidiary Of 6. Financial Statements Note And Cash Equivalent Cash 7. Note 8. Financial Instruments Note Companies About Related Be Disclosed To Information 9. Note Inventories 10. Note Appreciation Than Other Assets 11. Intangible Note 12. Appreciation Note And Equipment Plant 13. Property, Note Assets Of 14. Impairment Note Liabilities And Contingent 15. Provisions Note And Restrictions Guarantees 16. Note Revenue Ordinary 17. Note 18. Leases Note Benefits Employee 19. Note Effect Difference Rate Exchange 20. Note Nature Expenses By 21. Other Note Units Readjustment By 22. Income Note Financing Costs 23. Capitalized Note Taxes And Deferred Tax Income 24. Note Share 25. Earnings Per Note Segments 26. Business Note Environment 27. Note The Date After Occurring 28. Events Note Statement The Financial Position Of Note 3. Equity Attributable To Owners Of The Controller Of Owners To Attributable 3. Equity Note 72 72 72 72 75 75 75 75 76 76 76 77 77 78 78 78 78 78 79 79 79 80 80 80 80 81 81 81
A. Consolidation basis A. Consolidation segments B. Operational than capital gains other assets Intangible C. Capital gains D. and equipment plant E. Property, assets and intangible tangible of Impairment F. capital gains for except G. Leases H. Financial Assets I. Inventories policy Dividend payment J. transactions currency K. Foreign L. Financial liabilities and hedging accounting instruments financial M. Derivative liabilities and contingent N. Provisions Benefits Employee O. taxes Income tax and deferred P. revenue Ordinary Q. share R. Earnings per information S. Environmental statements cash flow Consolidated T. contracts Construction U. financing costs Capitalized V. Reclassifications W. preparation 2.1 Basis of 2.2 Accounting policies Policies Accounting and Preparation 2. Basis Of Note Index Information 1. General Note
Financial Statements Financial Notes to the Consolidated the Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements Annual Report 2017 Annual Report changes in equity and cash flows statements for for statements and cash flows changes in equity and 31, 2017 ended December years the financial with in accordance been prepared which have 2016, (IFRSs), Standards Financial Reporting International Standards Accounting the International issued by the and represent “IASBs”), (hereinafter Board Standards Accounting the International of adoption the and represent “IASBs”), (hereinafter Board the of adoption and unreserved full, explicit IFRSs. aforementioned the conditions of complies with the legal The Group in which it carries out its operations, environment subsidiaries regarding utility the water in particular The Group sector. utility the water of the regulations conditions in normal operating companies display activities, out their carry in which they each area and operation a profitable display projections their system access the financial to the capacity have which; in the opinion operations, finance their to to ability their determines the management, of in accordance company, as an operating continue which these under standards with the accounting issued. are statements financial consolidated currency and presentation Functional the companies of each of statements The financial of in the currency presented are in the Group in which they the main economic environment the purposes of For currency). (functional operate the income and statements, financial consolidated are in the Group each company of financial position in thousands (rounded Pesos in Chilean expressed the of currency which is the functional Pesos), of and its subsidiaries, and the presentation Company statements. financial the consolidated for currency Note 2. Basis Of 2. Basis Of Note And Preparation Policies Accounting preparation 2.1 Basis of statements financial These consolidated financial position the consolidated to correspond and 2016 31, 2017 December as of statements income, comprehensive and the consolidated Special Register of reporting entities of the Financial the Financial of entities reporting of Special Register 170 and No. under Insurance Commission and Market utility As companies in the water 2, respectively. No. the Superintendence by regulated are they sector, No. with Law Services, in accordance Sanitation of No. Law of with Force 1989 and Decrees 18,902 of 1988. of both 70, 382 and No. financial consolidated preparing the purposes of For when the exist is deemed to a group statements, subsidiaries, more has one or company parent or has direct company which the parent over policies applied The accounting control. indirect financial consolidated the Group’s in preparing 2.2. in Note detailed are statements Inversiones is Suez entity controlling The direct with a (“SIAGSA”), Ltda. Santiago del Gran Aguas controlled which is the ownership, of share 56.6% S.A. de Barcelona Aguas Sociedad General by based in Spain and one of a company (“Agbar”), which operators, utility water largest the world’s being ENGIE (France), Suez by is in turn controlled its main shareholder. (France) 73 In November 2005, IAM went to market, placing placing market, to went 2005, IAM In November new meant This shares. its 43.4% of of a package company. the entered shareholders Aguas in its shares of 1.1% sold During 2006, IAM ownership with 50.1% control Andinas S.A., retaining the company. of I program, ADR Level an it implemented In 2007 in the its shares trade to which made it possible the States, the United of market the counter over ended in 2016. was program water four of company is the parent The Company Santiago in the Greater three companies, utility S.A. Cordillera Aguas Andinas S.A., (Aguas areas one in the Los S.A.) and Manquehue Aguas and de Servicios (Empresa Lagos regions Ríos and Los to Lagos S.A. (Essal S.A.). In order Sanitarios de Los service within its scope a comprehensive provide are has subsidiaries that business, the Company of services such companies, providing utility water not (Ecoriles waste liquid industrial of as the treatment S.A.), Ambientales (Analisis analysis S.A.), laboratory services related and other materials of marketing Servicios S.A.) y (Gestión sector utility the water to with water associated and carrying out activities facilities from derived projects and energy rights del companies (Aguas utility water from and assets S.A.). Maipo Andinas Aguas and its subsidiaries The Company the Securities with registered S.A. and Essal S.A. are Securities and of the Superintendence of Registry as “Financial Market on known now (from Insurance 524, No. 346 and 912, No. No. under Commission”) S.A. Cordillera Aguas The subsidiaries respectively. in the registered S.A. are Manquehue Aguas and In July 2005, the company was transformed into into transformed was 2005, the company July In its and restricted corporation an open share investment to limited purpose, which was corporate Andinas S.A. and the provision Aguas of in shares and services advice, consultancies all kinds of of and knowhow, transfer technology to related business administration assistance, technical the to those related especially and projects, related businesses of and operation management sector. utility the water to IAM was awarded the share package in the in the package the share awarded IAM was the out by carried bidding process international (CORFO), de la Producción de Fomento Corporación additional and bought subscribed a capital increase control thus achieving Exchange, in the Stock shares Andinas S.A. Aguas capital of the share 51.2% of of EMOS). (ex IAM was incorporated on May 19, 1999, by Aguas Aguas by 1999, 19, on May incorporated IAM was Environment and Suez S.A. (“AGBAR”) de Barcelona with the purpose company, liability as a limited of process in the privatization participating of Sanitarias Obras de Metropolitana the Empresa Andinas Aguas S.A. (“EMOS”), currently Inversiones Aguas Metropolitanas S.A. (hereinafter (hereinafter S.A. Metropolitanas Aguas Inversiones and its subsidiaries make the “Company”) “IAM” or S.A. Metropolitanas Aguas up the Inversiones is address Its legal the “Group”). (hereinafter Group 2001, 20th floor, 2; oficina Torre Apoquindo N°4800, Identification Tax and its Chile Las Condes, Santiago, is 77.274.820-5. Number Information Note 1. General 1. General Note Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements Annual Report 2017 Annual Report Mandatory Application Application date Mandatory application mandatory of Date Annual periods beginning on or after January 1, 2018 1, January after on or Annual periods beginning 2018 1, January after on or Annual periods beginning 1, 2018 January after Annual periods beginning on or 1, 2019 January after beginning on or Annual periods 1, 2019 January after Annual periods beginning on or 1, 2021 January after beginning on or Annual periods 1, 2018 January after Annual periods beginning on or 1, 2018 January after Annual periods beginning on or 1, 2018 January after Annual periods beginning on or 1, 2018 January after Annual periods beginning on or 1, 2018 January after Annual periods beginning on or 1, 2019 January after Annual periods beginning on or 1, 2019 January after Annual periods beginning on or 1, 2019 January after Annual periods beginning on or 1, 2019 January after Annual periods beginning on or 1, 2019 January after Annual periods beginning on or 1, 2019 January after Annual periods beginning on or be determined To 74 Improvements and Modifications Improvements New standards New IFRS 9, Financial Instruments, classification and classification Financial Instruments, IFRS 9, measurement time the first for IFRS of Adoption IFRS 1, IFRS 15, Revenue from client contracts client from IFRS 15, Revenue and prepayments transactions currency IFRIC 22, Foreign Leases IFRS 16, uncertain tax positions of Treatment IFRIC 23, contracts Insurance IFRS 17, payments IFRS 2, Share-based contracts IFRS 4, Insurance Ventures Joint and Associates in 28, Investments IAS Properties Investment 40, IAS IFRS 3, Business Combinations Financial instruments IFRS 9, agreements Joint IFRS 11, 12, Income taxes IAS costs 23, Loans IAS in associates 28, Investments IAS Financial Statements Consolidated IFRS 10, Mandatory Application Application date Mandatory Annual periods beginning on or beginning on or Annual periods 1, 2017 January after beginning on or Annual periods 1, 2017 January after beginning on or Annual periods 1, 2017 January after Amendments and/or and/or Amendments Modifications IFRS 12, Disclosures IFRS 12, Disclosures in other interests of companies IAS 7, Cash flows Cash flows 7, IAS Statement 12, Income taxes IAS The standards and interpretations, as well as the as the as well and interpretations, The standards IFRSs, which to and amendments improvements into entered yet not been issued but have have are statements, these financial of the date at force applied these not has The Company below. detailed in advance. standards New accounting declarations accounting New the as as well and interpretations, The standards have IFRSs that to and amendments improvements these financial of the date at been issued, effective has The Company below. detailed are statements, they and concluded that applied these standards on the financial impact a significant have did not statements. Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements Annual Report 2017 Annual Report Service life of property, plant and equipment and and and equipment plant property, of Service life assets intangible and capital gains acquired assets of Valuation investments) of value lower funds or (trading impairment asset due to Losses of calculation used in the actuarial Assumptions benefits termination contract employee of value the fair calculate used to Assumptions financial instruments supplies unbilled Income from parties third to commitments for Provisions in progress litigation arising from Risks Estimates such as these have been used in preparing preparing in used been have these as such Estimates statements: financial the consolidated · · · · · · · · made were and judgments these estimates Although the at available information best the on the basis of financial consolidated these issuance of of date occur may that events that it is possible statements, (upward modification their require may in the future be periods, which would in future downward) or the time the change is at prospectively, recorded such changes of the effects acknowledging known, financial consolidated future in the corresponding statements. The Company measures its sales income at fair fair at income its sales measures The Company or consumption based on actual is Invoicing value. of net on the service receivable, performed work revenue so that and rebates, discounts trade returns, and the customer to when transferred is recognized costs associated probable, is considered recovery can collections erroneous for discounts and possible reliably. be estimated force into the entry that considers The Company of on the recognition has no effect this standard of contracts. customer from revenues and estimates the information for Responsibility made in these consolidated contained The information the of responsibility is the statements financial all that which states Directors, of Board Company’s included in International and criteria the principles been have (IFRS) Standards Financial Reporting Directors of 28, 2018, the Board applied. On March statements. financial these consolidated approved Inversiones of statements financial The consolidated S.A. and its subsidiaries Metropolitanas Aguas were year financial the 2016 to corresponding held a meeting at Directors of its Board by approved 2017. 29, on March 75 IFRS 9 requires the Group to record expected credit credit expected record to the Group IFRS 9 requires and trade securities, loans its debt on all of losses basis. lifetime or on a 12-month either debtors, evaluated the Company 31, 2017, December As of debtors its commercial of policy loss the credit this H), concluding that 1 letter in Note (described model, loss an expected considers implicitly policy is based This assessment requires. as this standard information. risk credit and sustainable on available the model with the aforementioned, In accordance with associated losses impairment determining for will be no be modified, and there will not risk credit the and submission of on the preparation effects statements. financial Company’s , issued Contracts” Client from IFRS 15 “Revenue a company that out the principles 2014, sets in May of users the to information useful display applies to amount, about the nature, statements the financial coming from the revenue of timing and uncertainty a arising from and cash flows activities ordinary aims to standard This new with a client. contract of and weaknesses the inconsistencies improve will facilitate a model that provide 18 and to IAS industries different companies from of comparability revenue model for a new Provides and regions. for requirements detailed and more recognition has Its application elements. with multiple contracts 1, 2018 and its early January since been mandatory allowed. was adoption of which the final which the final of “Financial Instruments” IFRS 9, the 2014. Establishes July issued in was version financial assets of reporting financial for principles useful that way, a and also financial liabilities in such the amounts, assessing for information and relevant cash future an entity’s of timing and uncertainty statements. financial of to users is displayed flows model of prospective” a “more It introduces accounting impairment for losses credit expected hedge to approach reformed and a substantially the option Companies shall also have accounting. from gains and losses for the accounting apply to risk” credit “own to related value changes in fair value fair at financial liabilities designated for without applying loss in advance, or profit through has Its application requirements. the IFRS 9 other 2018 and its early January since 1 been mandatory allowed. was adoption Note of IFRS 9 and IFRS 15 accounting policy in the in the policy 9 and IFRS 15 accounting IFRS of Note 31, 2017 December as of Financial Statements The Company’s management is analyzing is analyzing management The Company’s and the standards that impact the potential on the will have described above amendments effective those However, statements. financial 1, 2018 January on annual periods beginning for and it is estimated been analyzed have hereinafter on the effect a material have will not they that financial future of and presentation preparation statements. Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements Annual Report 2017 Annual Report Legal, regulatory or contractual limitations. contractual or regulatory Legal, industry. the business or of life Predictable obsolescence, (product factors Economic changes in demand). potential or current from reactions Expected competitors. ii. Amortization method for intangible assets intangible for method Amortization ii. service life with a defined assets Intangible the Company applied by method The amortization economic in which the future the pattern reflects the by to be used expected are the asset of benefits uses the the Company this purpose, For company. method. linear software Computer years. is 4 the software of service life The estimated the service life, with a definite assets other For depreciated are in which they service life period of in the contracts the periods defined to corresponds them. giving rise to rights or service life with undefined assets Intangible relate lives useful with undefined assets Intangible which and easements, rights water to mainly with the in accordance indefinitely, obtained were from obtained rights and the acquisition contracts of the Ministry under Bureau, Water the General Public Works. determination Service life in consideration into be taken to The factors the include, among others, service life estimating following: • • • • 2016 2016 50.10234 Total % Total 53.50650 99.99003 100.00000 100.00000 100.00000 100.00000 100.00000 100.00000 % 0.00000 Indirect Indirect 53.50650 99.99003 100.00000 100.00000 100.00000 100.00000 100.00000 100.00000 % Direct Direct 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 50.10234 % 50.10234 53.50650 99.99003 2017 Total Total 2017 100.00000 100.00000 100.00000 100.00000 100.00000 100.00000 C. Intangible assets other than capital gains other assets Intangible C. intangible an identifiable recognizes The Company it is probable that when it can demonstrate asset to it attributed economic benefits the future that reliably can be and the cost to the company will flow measured. separately acquired assets i. Intangible presented are separately acquired assets Intangible and amortization accumulated less cost at is Depreciation losses. impairment accumulated useful basis using estimated on a linear calculated amortization and the lives useful The estimated lives. each balance of the closing at reviewed are method any of the effect for accounting prospectively sheet, changes in the estimate. 76 % 0.00000 Indirect Indirect 53.50650 99.99003 100.00000 100.00000 100.00000 100.00000 100.00000 100.00000 % Direct Direct 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 50.10234 Company Company Name Aguas Aguas S.A. Cordillera Aguas Aguas S.A. Manquehue Inversiones Ltda. Iberaguas de Empresa Servicios Sanitarios S.A. Lagos de Los Aguas Andinas S.A. Aguas EcoRiles S.A. EcoRiles Gestión Servicios S.A. y Análisis S.A. Ambientales Aguas S.A. del Maipo Operations related to water utility services (Water). utility water to related Operations sector utility the water to related not Operations (Non-Water). B. Operational segments B. Operational operating for standards reporting IFRS 8 establishes products to relating and disclosures segments defined are segments and services. Operating is which there for a company of as components regularly which is financial information, separate decisions make to the management by reviewed the segments to be allocated to about the resources performance. their and evaluate the performance manages and measures The Group Internally business segment. by its operations of the following: are segments operating reported - - R.U.T. 96.809.310-K 89.221.000-4 96.897.320-7 96.579.800-5 61.808.000-5 96.945.210-3 96.828.120-8 96.967.550-1 76.190.084-6 The subsidiaries included in the consolidated The subsidiaries included in the consolidated Aguas Inversiones of statements financial the following: S.A. are Metropolitanas The Company and its Subsidiaries display and its Subsidiaries display The Company the Group. in the policies used by uniformity In the consolidation process, all transactions, all transactions, process, In the consolidation the Group between balances, earnings and losses eliminated. companies are A. Consolidation basis A. Consolidation include statements financial The consolidated and the Company of statements the financial (its the Company by the companies controlled those companies Subsidiaries are Subsidiaries). the direct to has the power which the Group over income variable to is entitled activities, relevant use that to and the ability its participation from investor of the amounts influence to power the from consolidated Subsidiaries are returns. the Group to is transferred on which control date on the date consolidation from excluded and are ceases. on which said control The main accounting policies adopted in in policies adopted The main accounting financial these consolidated preparing described hereafter. are statements 2.2 Accounting 2.2 Accounting policies Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements 5 4 10 50 80 80 80 Maximum Maximum service (years) life Annual Report 2017 Annual Report 7 5 5 5 5 4 25 service Minimum Minimum life (years) (years) life Ítem Buildings and equipment Plant technology Information equipment installations Fixed and accessories Vehicles Motor to Improvements assets leased plant property, Other and equipment Cost estimation policy for dismantling, removal or or removal dismantling, for policy estimation Cost and equipment plant property, of rehabilitation in the being built assets the of the nature Due to no contractual are there that and given Company such requirements building other or obligations the IFRS and, within by as those mentioned of the concept framework, the regulatory of date to applicable is not decommissioning costs statements. financial these consolidated Policy Sales Assets Fixed are assets fixed of on the sale losses Earnings or with obtained comparing the revenue by calculated in the Consolidated recorded and are value the book Income Statements. Comprehensive assets and intangible tangible of Impairment F. capital gains for except closure, statement financial each consolidated At its of the carrying amounts reviews the Group service with a definite assets and intangible tangible Nature of the material components of the the of components the material of Nature constructions. or equipment the equipment. of operation of Means use. of Intensity limitations. contractual or regulatory Legal, companies). The residual value and service life of the the of and service life value residual The companies). at necessary, if and adjusted, reviewed are assets each balance sheet. of the closure its estimated exceeds an asset of value When the is immediately value its amount, recoverable 14). Note (see amount its recoverable to reduced Service lives of the purpose for considered The service lives based on technical are depreciation calculating companies, external specialist by prepared studies that is a history as soon as there reviewed which are an asset of life the service that consider us to allows has been modified. the assets of service life the total of The allocation including factors, several is made on the basis of usually Such factors the equipment. of the nature include: 1. 2. 3. 4. type is as asset by years) (in service life of The range follows: 77 maintained at the net carrying amount recognized at at recognized carrying amount the net at maintained is the capital gain arising thereafter while date, that method. using the acquisition recorded the at instead, amortized; not The capital gain is is made as an estimate year, each financial end of in it that occurred has impairment any whether to than less an amount to value its recoverable reduces appropriate, and, where recognized cost the net made, as is adjustment impairment an appropriate 36. IAS by required and equipment plant E. Property, valuation the for method uses the cost The Company cost The historical and Equipment. Plant Property, of to attributable directly are that includes expenses asset. the the acquisition of of value the included in are costs Subsequent asset as a separate recognized or the initial asset economic the future that when it is probable only to flow will assets with the fixed associated benefits can be reliably asset the of and the cost the Group component the replaced of value The determined. are and maintenance repairs All other off. is written in which they year the for loss or profit to charged incurred. are for service life and estimated method Depreciation and equipment plant property, the Company applied by method The depreciation to expected are in which assets pattern the reflects during the period in which the company be used by this purpose, For economic benefits. generate they method depreciation uses the linear the Company based on studies life, useful its technical throughout external (specialist experts independent by prepared Natural and climatic factors and technological and technological factors and climatic Natural generate to the capacity affect changes that profits. Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes The capital gain that was generated prior to the the to prior generated was The capital gain that 1, 2008, is January IFRS, i.e. to transition our of date In the event that the definitive determination of of determination the definitive that In the event statements the capital gain is made in the financial of the acquisition following year the financial for that year the previous for the items the interest, modified purposes are comparative for shown are and liabilities the assets of value include the to the capital gain from and the definitive acquired the interest. of acquisition date The assets and liabilities acquired are measured on on measured are and liabilities acquired The assets of control taking of the date basis at a provisional within a maximum reviewed are and the Company, Until acquisition. of the date from year one period of and liabilities is definitively assets of value the fair the acquisition between the difference determined, is company the acquired of value price and the book as capital gains. recorded provisionally D. Capital gains D. or value investment The capital gains (lower in the business combination goodwill) generated over the acquisition cost of the excess represents and assets of value in the fair interest the Group’s contingent liabilities, including the identifiable the acquisition date. at a subsidiary liabilities of • time over modifications require may The service life changes of as a result changes in estimates due to mentioned the previously about in assumptions factors. Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements Annual Report 2017 Annual Report i. Effective interest rate method rate interest i. Effective is the method method rate interest The effective a financial of cost the amortized calculate used to income interest of and the allocation liability or asset The effective period. entire the over expense or discounts that the rate to corresponds rate interest receivable cash flows future the estimated exactly and the financial asset, of life the expected over its to (NPV) equal Value Present the Net makes nominal amount. with changes in value fair at ii. Financial assets income through value fair at presented are Financial assets for is held asset loss when the financial or profit through value fair at as is designated or trading loss. or profit loss or profit through value fair at Financial assets earning resulting and any value fair at measured are loss The net loss. or in profit is recognized loss or loss includes any or in profit recognized earning or on the financial asset. received interest dividend or Sociedad Eléctrica of shares The Subsidiaries hold fair their at valued been S.A., which have Puntilla in IAS as established date, the acquisition at value will be made at measurement Its subsequent 39. No. to according market, is no active because there cost in the same standard. is provided what receivable and accounts iii. Loans are receivables and other loans debtors, Trade fixed which have assets, financial non-derivative in quoted not and are payments determinable or loans and classified as and are market an active at valued are and receivables Loans receivables. method, interest using the effective cost amortized Financial assets at fair value through profit or loss. or profit through value fair at Financial assets maturity. to held Investments and receivables. Loans financial assets. Available-for-sale been transferred and the Group has substantially has substantially and the Group been transferred ownership. of rewards and all the risks transferred following the classified into are Financial assets categories: • • • • and nature depends on the The classification on and is determined assets the financial purpose of initial recognition. in low- and its Subsidiaries invest The Company with classification comply that instruments risk policies. investment in their established standards an have therefore funds must investment Mutual high protection very with (quotas / M1 rating AAfm risks/quotas with credit associated loss, against changes in economic to sensitivity with the lowest deposits and contracted Fixed-term conditions). rating with an N-1 instruments are covenants capital pay to capacity with the highest (instruments and timeframes). terms on the agreed and interest correspond issuing these instruments The institutions banks, subsidiaries of banking companies or to a have instruments and their rating risk with an N-1 high capacity very a (with AA least at of rating risk terms on the agreed capital and interest pay to be significantly not which would and timeframes, the changes in the issuer, possible by affected the economy). or which it belongs to industry 78 G. Leases i. Financial leases leases when the as financial classified are Leases and risks all transfer substantially the lease of terms leases All other the lessee. to ownership of rewards leases. classified as operating are leases ii. Operating as an recognized are payments lease Operating the lease, of the life basis over on a linear expense basis is more systematic when another except in which the timing pattern reflect to representative are leased asset the of the economic benefits as an recognized are leases consumed. Contingent incurred. are in the period in which they expense received are incentives lease that In the event such lease, an operating into enter to in order The as a liability. recognized are incentives on recognized is incentives from benefit cumulative expense, the lease of as a reduction basis a linear basis is more systematic when another except in which the time pattern reflect to representative are leased asset the of the economic benefits consumed. Leases iii. Implied their and its Subsidiaries review The Company in implied leases, of the existence verify to contracts with IFRIC 4. accordance H. Financial Assets financial instruments and disposals of Acquisitions the date i.e. date, on the trade recognized are sell or acquire to undertakes on which the Group when derecognized are Investments the asset. them have from cash flows receive to the rights When the recoverable amount of an asset (or (or an asset of amount When the recoverable than be less to unit) is estimated cash-generating that of the carrying amount its carrying amount, its to unit) is adjusted cash-generating (or asset is loss and an impairment amount recoverable When an loss. or as profit immediately recognized the carrying amount is reversed, loss impairment unit) is adjusted cash-generating (or the asset of value, its recoverable of estimate the revised to does not carrying amount the adjusted that provided been have would that the carrying amount exceed (or the asset of loss had no impairment determined in unit) which had been recognized cash-generating years. financial prior The recoverable amount is the larger amount amount larger is the amount The recoverable sell and to minus the costs value the fair between in value the of the estimation in use. For value the discounted are cash flows future use, estimated before rate using a discount value present their to of conditions market current both reflects that taxes time and the specific risks over money of value the with the asset. associated Intangible assets with indefinite service lives are are service lives with indefinite assets Intangible on an annual basis and if impairment for tested been have may the asset that indications are there period. that of the end before impaired life to determine whether there are indicators that that indicators are there whether determine to life If loss. an impairment suffered have these assets the of value the recoverable exist, such indicators the of the amount determine to is estimated assets to possible When it is not any). (if loss impairment a particular of amount the recoverable estimate of value the recoverable estimates the Group asset, belongs. which the asset unit to the cash-generating Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Inversiones Aguas Metropolitanas S.A. and Subsidiaries Notes to Consolidated Financial Statements
minus any impairment loss, except for short-term In the subsidiaries: Aguas Andinas S.A., Aguas 70% may be distributed as an additional dividend, M. Derivative financial instruments and hedging accounts receivable where the recognition of Cordillera S.A., Aguas Manquehue S.A. and Essal provided that the Company’s current level of accounting interest would be intangible. S.A., the debt of clients with more than 8 balances is capitalization is maintained and it is compatible with The use of derivative financial instruments by the provisioned for 100%. investment policies. Company and its Subsidiaries is based on the Commercial debtors and other accounts receivable Group’s financial risk management policies, which The commercial debtors correspond to the amounts For the subsidiaries: Aguas Andinas S.A., Aguas K. Foreign currency transactions establish the guidelines for their use. invoiced for consumption of potable water, Cordillera S.A., Aguas Manquehue S.A. and Essal S.A., Foreign currency assets and liabilities are presented sewerage services, wastewater treatment and other the consumption debts transformed into payment at the respective exchange rates in effect at each The Group uses derivative financial instruments as services and the income accrued from consumption agreements are provisioned at 100% of the agreed financial year end, according to the following rates: hedging instruments to mitigate inflation, interest between the date of the last reading (according to balance. rate and foreign currency risks on existing items the established monthly calendar) and the closing to which it has been exposed as a result of its 31-12-2017 31-12-2016
Currency Consolidated Financial Statements date of the Financial Statement. These are recorded For the subsidiaries: Gestión y Servicios S.A., Anam $ $ operations. at net value of the allowance for doubtful accounts S.A., EcoRiles S.A., and Aguas del Maipo S.A., US Dollar 614.75 669.47 receivable or with a low probability of collection. customers with debts of more than 120 days are Derivatives are recorded at fair value at the financial provisioned 100% over overdue debt. Euro 739.15 705.60 situation statement date. In the case of financial The commercial debtors’ policy is subject to the derivatives, if their value is positive, they are credit policy, which establishes the payment terms, Notes receivable with past-due debt are provisioned Foreign currency transactions are translated into recorded under “Other Financial Assets” and if they as well as the different scenarios to be agreed upon at 100%. the functional currency using the exchange rates are negative under “Other Financial Liabilities”. by delinquent clients. prevailing at the transaction dates. Foreign currency I. Inventories earnings and losses resulting from the settlement Changes in fair value are recognized directly in profit Impairment policy for commercial debtors and Materials, spare parts and consumables are valued of these transactions and from the translation of or loss, unless a derivative has been designated other receivables at acquisition cost, which does not exceed net monetary assets and liabilities denominated in as a hedging instrument and all the conditions The Company periodically evaluates the impairment realization value. The costing method corresponds foreign currency at the closing exchange rates are established by IFRS for applying hedging accounting losses affecting its financial assets. The amount is to the weighted average cost. Inventories that have recognized in the consolidated comprehensive are met. recorded in the allowance for doubtful accounts. not rotated in the last twelve months are valued and income statement. The carrying amount of the asset is reduced as the recorded at market value if it is lower. The treatment of hedging transactions with provision account is used and the loss is recognized Exchange differences are recorded in the results of derivative instruments is as follows: in the consolidated comprehensive income J. Dividend payment policy the period in which they are accrued. statement under “other expenses”. When an account The Company’s dividend policy and in accordance Fair value hedging. Changes in the market value receivable is uncollectible, it is recorded against the with Article 79 of Law 18.046 governing L. Financial liabilities of derivative financial instruments designated as provision account for accounts receivable. Corporations, is to distribute at least 30% of the Loans and obligations with the public and similar hedging instruments and hedged items are recorded net profits for each financial year. In the event that obligations are initially recognized at fair value, with a charge or credit to the financial income of the Estimates are based on the following historical these dividends do not exist or are lower than the net of the costs incurred in the transaction. respective income statement. situation: considering the recovery statistics, which minimum established by law, the corresponding Subsequently, they are valued at amortized cost indicate that after the eighth month of unpaid provision shall be made. using the effective interest rate, except for those Cash flows and net investment in foreign currency invoicing, its possibility of collection is marginal, operations for which hedging contracts have been hedging. Changes in the fair value of these in other words, the probability of recovering an In addition to this, and with the prior approval of entered into and are valued in accordance with the derivative financial instruments are recognized by invoiced value is minimal. the Ordinary Shareholders’ Meeting, the remaining following section. the effective portion, directly in an equity reserve
Inversiones Aguas Metropolitanas 79 Annual Report 2017 Inversiones Aguas Metropolitanas S.A. and Subsidiaries Notes to Consolidated Financial Statements
called “cash flow hedging”, while the ineffective N. Provisions and contingent liabilities Aguas Andinas S.A. S.A. and Aguas Manquehue S.A. continue to accrue portion is recognized in profit or loss. The amount Provisions are recognized when the Group has a The compensation for years of service at Aguas this benefit after December 2002. recognized in equity is not transferred to the present obligation arising from past events for which Andinas S.A. is governed by the provisions of the income statement until the income of the hedged it is probable that the Group will use resources to Labor Code, except for the amount of the any event Essal S.A. transactions is recognized in equity, or until the settle the obligation and on which it can make a compensation accumulated as of July 31, 2002 and Employees who are part of the collective bargaining maturity date of those transactions. reasonable estimate of the amount of the obligation. the payment for dismissal of 1.45 salaries, excluding agreement in force or are assimilated to it at the voluntary resignation, without limit of amount or date of the financial statements are measured at If the hedge is discontinued, the earning or loss Provisions are quantified taking into account years, for workers who are part of the collective actuarial value only in the event of retirement and accumulated in equity at that date is retained until the best available information on the event and labor contracts in force and to whom, through their death. In such cases, there is a limit of six months for the underlying hedged transaction is carried out. At its consequences, and are re-estimated at each individual labor contract, the same benefit was payment purposes. In other cases, it is governed by that time, the accumulated earning or loss in equity balance sheet closing date. Provisions recorded are extended. The amount for any event accumulated the Labor Code. will be reversed on the income statement, affecting used to cover the specific risks for which they were on that date is adjusted quarterly according to the Consolidated Financial Statements this transaction. originally recognized and are reviewed, in whole or in variation in the consumer price index. Likewise, the Advances granted to personnel against these funds part, when these risks disappear or decrease. collective bargaining agreement establishes that are presented net of current obligations. They will At the end of each year, financial instruments are workers who retire in Aguas Andinas S.A., and make be charged in the final settlement in an adjusted presented at fair value. In the case of derivatives Contingent liabilities are all those possible their retirement effective within 120 days from the form, in accordance with the provisions of the not traded on formal markets, the Group uses obligations arising as a result of past events, whose date, on which they reach retirement age, will be aforementioned agreements. assumptions based on market conditions at that future materialization and associated equity damage able to access the benefit detailed in the collective date for their valuation. is estimated of a low probability. In accordance with bargaining agreement, and continue to accrue this For the other subsidiaries there are no benefits of IFRSs, the Group does not recognize any provision benefit after July 2002. this nature. Effectiveness. A hedge is considered to be highly for these items, although, as required by the same effective when changes in the fair value or cash standard, they are detailed, if any, in Note 15. Aguas Cordillera S.A. and Aguas Manquehue S.A. P. Income tax and deferred taxes flows of the underlying directly attributable to the The compensation for years of service at Income tax expense corresponds to the sum of hedged risk are offset by changes in the fair value O. Employee Benefits Aguas Cordillera S.A. and Aguas Manquehue income tax payable and changes in deferred tax or cash flows of the hedging instrument which is The severance payment obligation, which is S.A. is governed by the provisions of the Labor assets and liabilities. effective in the range of 80% to 125%. expected to accrue for workers retiring from Code, except for the amount of the any event Aguas Andinas S.A., Aguas Cordillera S.A., Aguas compensation accumulated as of December 31, The income tax payable is determined on the Embedded derivative. The Group also assesses Manquehue S.A., and Essal S.A., is recorded at 2002 and the payment for dismissal of 1 salary basis of the period’s tax result. The Group’s income the existence of embedded derivatives in financial actuarial value, determined using the projected without limit of amount or years, for workers who tax payable is calculated using the tax rates that contracts and instruments to determine whether unit of credit method. Actuarial earnings and losses are part of the collective bargaining agreements have been approved, or are in the final approval their characteristics and risks are closely related on severance payments arising from changes in in force and to whom, through their individual process, at the closing date of the financial position to the host contract whenever the set is not being estimates of turnover, mortality, salary increases employment contract, the same benefit was statement. accounted for at fair value. If not closely related, or discount rates, are determined in accordance extended. The amount for any event accumulated they are recorded separately by accounting for with IAS 19 in other comprehensive income, directly on that date is adjusted quarterly according to the Deferred taxes are recognized on the basis of the changes in value directly in the consolidated income affecting equity, which is subsequently reclassified variation in the consumer price index. Likewise, the differences between the carrying amounts of assets statement. as retained earnings. aforementioned collective bargaining agreements and liabilities in the financial statements and the establish that workers retiring in Aguas Cordillera corresponding tax bases used in calculating the
Inversiones Aguas Metropolitanas 80 Annual Report 2017 Inversiones Aguas Metropolitanas S.A. and Subsidiaries Notes to Consolidated Financial Statements
tax result and are accounted for using the balance Q. Ordinary revenue For billing groups that have the information R. Earnings per share sheet based liability method. Deferred tax liabilities on the basis of consumption actually read, the Basic earnings per share are calculated as the are recognized for all taxable temporary differences, Ordinary revenue recognition policy corresponding rate will be applied. quotient between the earning (loss) attributable to and deferred tax assets are recognized for all Revenue arising from all normal operations and the holders of equity instruments of the controlling deductible temporary differences to the extent that other events is recorded at its fair value of payment In those cases in which the Company does not have comapny and the weighted average number of it is probable that future taxable income will be used received or receivable based on payment terms, all the consumptions read, it will proceed to make ordinary shares in circulation. to offset such differences. Deferred tax assets or rebates and credit notes. The amount of income can the best estimate of that not invoiced income, this liabilities are not recognized if temporary differences be measured with confidence. is on the basis of physical data from the previous During the financial years ended on December arise from the impairment or initial recognition month valued at the current rate, considering in 31, 2017 and 2016, the Group has not carried out (except in a business combination) of other assets Revenue recognition policy for sales of goods both cases (invoicing or estimate) normal or over- any type of dilutive effect operation that results in and liabilities in a transaction that does not affect Ordinary revenue from sales of goods is recognized consumption rate as appropriate. diluted earnings per share which differ from basic taxable income or financial results. once the risk and significant advantages derived earnings per share. Consolidated Financial Statements from the ownership of the goods are transferred, the The transfer of risks and benefits vary according to The carrying value of deferred tax assets is reviewed Company does not have any relationship with the the company’s business. For water utility services S. Environmental information at the date of each financial position statement and goods sold, the amount of revenue can be measured companies, the provision of services and all their Assets of an environmental nature are those that is reduced to the extent that it is no longer probable reliably, it is probable that the company will receive associated charges are made according to actual are used on a lasting basis in the activity of the that sufficient taxable income will be available to the economic earnings associated with the sale and consumption and a monthly provision are made on Subsidiaries, whose main purpose is to minimize enable recovery of all or part of the asset. the costs incurred in the operation are also reliably the consumptions made and not invoiced based on adverse environmental impacts and to protect and measurable. previous invoicing. For the companies Anam S.A., improve the environment, including the reduction Deferred tax assets and liabilities are measured at EcoRiles S.A., Gestión y Servicios S.A. and Aguas del or elimination of future pollution of the Subsidiaries’ tax rates expected to be in effect in the period in Service sales revenue recognition policy Maipo S.A., the invoicing and eventual provisioning is operations. which the liability is settled or the asset is realized, Revenue from the sale of services is measured carried out on the basis of executed work. based on tax rates that have been approved or the at fair value. Invoicing is made based on These assets are valued, like any other asset, at approval process is practically completed at the end actual consumption or work performed on the Method for determining service termination status acquisition cost. Subsidiaries depreciate these of the period in the financial position statement. The consideration receivable, net of returns, trade The provision of water utility services is verified items on a linear basis over the estimated remaining measurement of deferred tax assets and liabilities discounts and rebates, so that revenue is recognized through the measurement of consumption, in service life of the various items. reflects the tax consequences that would arise from when transferred to the customer and recovery is accordance with the provisions of the associated the manner in which the Group expects to recover or considered probable, associated costs and possible legal regulations, insofar as for the non-regulated T. Consolidated cash flow statements settle the carrying amount of its assets and liabilities discounts for erroneous collections can be reliably subsidiaries once the services have been completed The statement of cash flows includes cash flows at the reporting date. estimated. and/or the respective reports issued. made during the period, which include value added tax (VAT), determined by the direct method and Deferred tax assets and liabilities are offset if there The service area of the water utility companies is Income from agreements with developers is using the following criteria: is a legally enforceable right to offset tax assets divided into billing groups, which determines dates recorded as ordinary income as long as certain against tax liabilities and these are related to the for readings and subsequent billing. This process is conditions stipulated in each contract are met, Cash and cash equivalents: represent inflows and same company and tax authority. developed on the basis of a monthly calendar, which which ensure that the associated economic benefit outflows of cash and cash equivalents, defined as generates unread consumption at the end of each will flow to the Company. short-term investments with high liquidity and low month, and therefore not invoiced. risk of changes in value (less than three months from the date of trade and without restrictions).
Inversiones Aguas Metropolitanas 81 Annual Report 2017 Inversiones Aguas Metropolitanas S.A. and Subsidiaries Notes to Consolidated Financial Statements
Operating activities: represent activities typical for the period. When the result of a construction interest on that debt must be subtracted from the of the normal operation of the Company’s and its contract cannot be estimated reliably enough, financial expense and included in the financed Subsidiaries business, as well as other activities not contract revenues are recognized only up to the construction work, up to the total amount of classified as investing or financing. limit of the contract costs incurred that are likely to such interest, applying the respective rate to the be recovered. expenditures made at the date of presentation of the Investment activities: represent acquisition, financial statements. disposal or other disposition of long-term assets The Group presents as an asset the gross amount and other investments not included in cash and cash owed by clients for work on all contracts in progress W. Reclassifications
equivalents. for which the costs incurred plus recognized For comparative purposes, reclassifications have Consolidated Financial Statements profits (minus recognized losses) exceed partial been made as of December 31, 2016, in accordance Financing activities: represent activities that result invoicing. Partial invoicing not paid by clients and with the following detail: in changes in the amount and composition of equity withholdings are included under “Commercial and liabilities that are not part of ordinary activities. debtors and other receivables”. Increase/ U. Construction contracts The Group presents the gross amount owed to Reclassifications (Decrease) For construction contracts, the Group uses the customers for the work of all contracts in progress Th$ “Percentage of realization method” to recognize for which partial invoicing exceeds costs incurred Income statement by nature: revenues and expenses relating to a contract in plus recognized profits (minus recognized losses) Revenue from ordinary progress. Under this method, contract revenues as a liability. -246,664 activities are compared with contract costs incurred in the degree of progress, which will reveal the amount V. Capitalized financing costsB Other expenses, by source 246,664 of revenues from ordinary activities, expenses and earnings that can be attributed to the executed Interest bearing loan policy Cash flow statement: portion of the contract. Loan costs that are directly attributable to the Receipts from sales of goods 24 acquisition, construction or production of qualifying and provision of services Contract costs are recognized when incurred. When assets are capitalized as part of the cost of such assets. Other charges for 92,410 the result of a construction contract can be reliably operating activities estimated and the contract is likely to be profitable, Capitalization policy for interest costs Payments to suppliers -92,434 contract revenues are recognized over the contract Interest paid or accrued on debts financing for goods and services period. When it is probable that total contract costs qualifying assets is capitalized in accordance with will exceed total contract revenues, the estimated IAS 23. IAS 23 establishes that when the Company loss is recognized immediately as an expense acquires debt in order to finance investments, the
Inversiones Aguas Metropolitanas 82 Annual Report 2017 Consolidated Financial Statements Annual Report 2017 Annual Report Other equity interests equity Other investments in other recorded The amount of restatement the price-level to corresponds IFRS, to year 2008, the transition paid-in capital for the Financial 456 of No. Letter Circular to pursuant business of Commission and the effects Market common control under companies of combinations The balance as of and 2008. carried out in 2007 Th$- to corresponds and 2016 31, 2017 December 37,268,417. Minimum dividend provision Minimum in note described with the policy In accordance the Company 31, 2017, December as of J, 2.2 letter the minimum for provision any recognized has not a minimum 31, 2016, December As of dividend. the profit 30% of of dividend complement recorded. Th$1,251,458 was to corresponding earnings Accumulated land and of revaluation for recorded The amounts adoption first-time and other assets intangible in accumulated presented IFRS are of adjustments distribution, their for restrictions and have results realized as recognized be first must since they with the in accordance sale, the use or through Letter and Circular 16 IFRS 1, IAS of provisions the Financial Market 2008, of 20, June 456 of No. also includes the amount This item Commission. gains and losses actuarial to corresponding changes in of since 2009 as a result determined plan obligations. benefit defined and 2016, 31, 2017 December as of Additionally, parameters the calculation made to changes were on severance gains and losses the actuarial of in the a record which generated payments, Th$13,537, Th$491,566 and of results accumulated O). 2.2. Note (see respectively and 2016 31, 2017 December The balance as of correspond Th$162,398,166 to and Th$158,593,033, respectively. 83 In the Board of Directors’ ordinary meeting held held meeting ordinary Directors’ of In the Board distribute to agreed was it 13, 2017, on December 2017, earnings for of on account Th$21,035,300, the Company’s As a result, dividend. as an interim per Ch$21.0353 to 29 amounts dividend number 2018. 29, January paid on share, Shareholders’ Ordinary an April 28, 2016, On the which approved held, was Meeting obtained profits the net of 100% of distribution 2015, plus $46.686 in the Company by The results. accumulated to corresponding in the 2016 January dividend paid in interim from deducted was Th$20,324,000 of amount distributable Consequently, this distribution. Th$42,959,300, to income amounted per Ch$42.9593 a dividend of to corresponding 2016. 27, paid on May share, held Meeting Directors’ of Board In the ordinary distribute to agreed it was 2016, 29, on November 2016, for profits of on account Th$21,035,300, the Company’s As a result, dividend. as interim per Ch$21.0353 to 27 amounts dividend number 23, 2017. January paid on share, • and agreed were dividend payments The following year: financial made in the 2016 • • On April 27, 2017, an Ordinary Shareholders’ Shareholders’ an Ordinary 2017, April 27, On resolved in which it was held, was Meeting for profits the net of 89.7% distribute to plus Th$74,289,195 to which amounted 2016, earnings. In retained to Th$54 corresponding dividend paid in the interim of consideration Th$21,035,300, to which amounted 2017, January Th$45,621,300. to income amounted distributable share, per Ch$45.6213 a dividend of This meant 25, 2017. paid on May which was • For the year ended on December 31, 2017, the 2017, 31, ended on December year the For and made: agreed were dividend payments following There have been no changes in capital management been no changes in capital management have There years. policies in the reported or objectives The Company manages its capital in order to ensure ensure to manages its capital in order The Company financial access to and expeditious permanent solvency its growth, achieve enabling it to markets, objectives. and profitability The Controller and 2016 31, 2017 December The capital as of no are There Th$ 468,358,402. to corresponds shares. preferred or portfolio in the shares treasury Attributable To Owners Of Of Owners To Attributable is divided into the Company The capital of value with no par shares registered 1,000,000,000 series. and a single Note 3. Equity 3. Equity Note Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements 0 3,193 Annual Report 2017 Annual Report 4,258,600 75,133,733 Th$ 236,102 79,395,526 -416,341 -221,240 -555,730 1,483,341 5,027,881 6,511,222 -5,395,623 20,169,949 31-12-2016 -6,808,706 -4,666,883 14,594,087 -27,118,382 -14,865,823 Income 31-12-2016 Th$ 31-12-2016 1,883 3,860,090 Th$ 69,667,253 73,529,226 31-12-2017 191,098 571,959 -161,206 2,121,103 -628,391 -275,905 1,280,888 4,804,014 2,608,255 -6,527,947 -1,522,983 6,084,902 -4,092,913 -18,182,263 -31,115,703 21,198 Th$ 52,704,047 Non controlling interests controlling Non 316,429,593 369,154,838 31-12-2017 Th$ 31-12-2017 31-12-2016 Equity 20,295 Th$ 50,648,406 320,657,720 371,326,421 31-12-2017
% 0.00997% 49.89766% 31-12-2016 46.49350% % Share 84 % 0.00997% 49.89766% 31-12-2017 46.49350%
(1) Company Non-operating income and expenses Non-operating Includes the participation of third parties for the allocation at market value of the assets and liabilities arising from the purchase of Inversiones Iberaguas Ltda. and Essal S.A., Ltda. Iberaguas and liabilities the assets Inversiones of value of the allocation the purchase arising from market at parties for third of Includes the participation Totals Essal S.A. Aguas Andinas Aguas S.A. S.A. Cordillera Aguas Interest expense, RFC (Promissory notes) (Promissory RFC expense, Interest Bonds expense, Interest other expense, Interest Financial costs income Interest debt of & extinction Gain on redemption Financial income Earnings (losses) on sale of non-current assets, not held for sale for held not assets, non-current of on sale Earnings (losses) (losses) earnings Other loans Bank expenses instrument Hedging contracts loan to related additional costs of Amortization Discarded projects* Discarded and equipment plant property, of on replacement Losses earnings (losses) Other (1) at the time of the business combination. the time of at * This relates mainly to the earnings (losses) generated as a result of of as a result generated the earnings (losses) to mainly This relates * 15). Note (see projects with the scrapped associated the guarantees was litigation a Company of for a provision of the reversal In 2017, also submitted. Expenses 1 with IAS in accordance disclosures Additional are income and expenses non-operating to relating below: presented Note 5. Other Income And And Income 5. Other Note Controlling Interests Controlling interests non-controlling the Dividends paid to Andinas Aguas Essal S.A. and the subsidiaries of to amount and 2016 31, 2017 December S.A. as of respectively. Th$64,945,029, and Th$73,652,902 Attributable To Non- To Attributable arising from the effects of company, by The detail, loss or and profit in equity parties third of the share is as follows: and 2016 31, 2017 December as of Note 4. Equity 4. Equity Note Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements -9,421 Annual Report 2017 Annual Report 179,909 -431,091 6,217,122 3,118,551 9,112,222 -534,705 Th$ -7,923,111 4,752,102 3,376,620 -1,219,454 -1,194,599 Th$ Equity 53,878,217 67,826,762 76,595,270 642,630,776 -40,569,933 203,558,909 (expenses) Other income net net income Other 0 0 0 41,863 109,474 Th$ -6,053 24,353,717 49,784,017 94,198,693 -655,995 liabilities 682,856,092 Th$ -11,174,166 -6,706,861 -7,928,958 -7,988,554 Non current current Non -34,775,771 -32,748,879 -202,101,003 expenses expenses Operational Operational 0 24,578 2,101,177 Th$ 1,700,455 3,687,532 17,441,531 7,200,920 15,292,813 29,796,925 iabilities Current l Current 186,863,408 1,335,159 8,301,209 8,363,693 Th$ 13,389,212 12,401,009 54,926,019 52,833,529 382,291,216 income Ordinary Ordinary 780,187 501,160 Th$ 4,614,248 assets 65,780,301 14,356,295 88,826,395 155,973,380 268,599,745 1,404,120,371 Non current current Non 614,644 669,743 1,163,257 1,680,341 6,211,069 3,193,001 12,227,137 Th$ 18,890,051 139,620,280 financial year financial Income of the of Income Th$ 4,718,568 2,071,039 2,066,321 1,838,309 6,325,828 4,698,352 32,262,114 14,540,106 108,229,905 Current assets Current 85 Subsidiaries 31-12-2017 Subsidiaries 31-12-2017 Aguas Andinas Aguas S.A. Aguas Cordillera S.A. Cordillera Aguas Aguas Manquehue S.A. Manquehue Aguas Aguas Andinas Aguas S.A. Inversiones Iberaguas Ltda. Iberaguas Inversiones Empresa de Servicios Sanitarios de Los Lagos S.A. de Servicios Sanitarios de Los Empresa Aguas Cordillera S.A. Cordillera Aguas EcoRiles S.A. EcoRiles Gestión y Servicios S.A. y Gestión Aguas Manquehue S.A. Manquehue Aguas Análisis Ambientales Análisis Ambientales S.A. Aguas del Maipo S.A. del Maipo Aguas Inversiones Iberaguas Ltda. Iberaguas Inversiones Empresa de Servicios Sanitarios de Los Lagos S.A. de Servicios Sanitarios de Los Empresa EcoRiles S.A. EcoRiles Gestión y Servicios S.A. y Gestión Análisis Ambientales Análisis Ambientales S.A. Aguas del Maipo S.A. del Maipo Aguas SUMMARY FINANCIAL INFORMATION OF SUBSIDIARIES (COMPREHENSIVE INCOME STATEMENT) AS OF DECEMBER 31, 2017 DECEMBER OF AS INCOME STATEMENT) SUBSIDIARIES (COMPREHENSIVE OF INFORMATION FINANCIAL SUMMARY SUMMARY FINANCIAL INFORMATION OF SUBSIDIARIES (STATEMENT OF FINANCIAL POSITION) AS OF DECEMBER 31, 2017 DECEMBER OF AS POSITION) FINANCIAL OF (STATEMENT SUBSIDIARIES OF INFORMATION FINANCIAL SUMMARY Companies Statements Of Subsidiary Subsidiary Of Statements the financial position of information The summarized of income statement and comprehensive statement included in the consolidated the subsidiaries each of follows: is as statements financial Note 6. Financial 6. Financial Note Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements 290,073 Annual Report 2017 Annual Report -293,045 Th$ 3,148,160 -484,406 -1,727,614 77,091,911 6,691,009 -7,448,101 4,426,942 8,643,402 2,945,840 -1,150,659 Th$ 12,257,660 Equity 68,314,285 53,268,018 212,612,997 634,157,180 -32,665,978 (expenses) (expenses) Other income net net income Other 0 0 0 82,367 40,043 Th$ -12,600 68,171,861 23,831,041 -731,325 49,255,201 -6,167,761 714,853,235 liabilities -7,990,314 Th$ Non current current Non -8,094,804 -10,519,495 -33,662,534 -33,044,506 -186,373,052 expenses expenses Operational Operational 0 0 24,386 99,426 Th$ 7,697,070 2,956,521 17,710,264 2,380,465 3,690,043 Current 46,265,462 155,966,837 liabilities 7,159,548 8,569,328 11,488,105 Th$ 12,726,542 53,429,959 53,655,895 income 369,614,696 Ordinary Ordinary 907,094 425,004 Th$ 8,347,776 5,354,352 assets 79,936,629 147,548,129 66,033,589 263,155,183 Non current current Non 1,380,836,807 698,742 -441,252 1,722,641 2,347,132 6,678,409 Th$ 13,163,288 -1,253,090 32,025,085 150,575,666 financial year financial Income of the of Income 477,419 2,029,111 5,103,621 Th$ 5,768,832 2,305,082 4,859,500 assets 15,425,907 44,978,477 Current Current 124,140,445 86 Subsidiaries 31-12-2016 Subsidiaries 31-12-2016 Aguas Andinas Aguas S.A. Aguas Cordillera S.A. Cordillera Aguas Aguas Andinas Aguas S.A. Aguas Manquehue S.A. Manquehue Aguas Aguas Cordillera S.A. Cordillera Aguas Inversiones Iberaguas Ltda. Iberaguas Inversiones Aguas Manquehue S.A. Manquehue Aguas Empresa de Servicios Sanitarios de Los Lagos S.A. de Servicios Sanitarios de Los Empresa Inversiones Iberaguas Ltda. Iberaguas Inversiones EcoRiles S.A. EcoRiles Empresa de Servicios Sanitarios de Los Lagos S.A. de Servicios Sanitarios de Los Empresa Gestión y Servicios S.A. y Gestión EcoRiles S.A. EcoRiles Análisis Ambientales Análisis Ambientales S.A. Gestión y Servicios S.A. y Gestión Aguas del Maipo S.A. del Maipo Aguas Análisis Ambientales Análisis Ambientales S.A. Aguas del Maipo S.A. del Maipo Aguas SUMMARY FINANCIAL INFORMATION OF SUBSIDIARIES (COMPREHENSIVE INCOME STATEMENT) AS OF DECEMBER 31, 2016 DECEMBER OF AS INCOME STATEMENT) SUBSIDIARIES (COMPREHENSIVE OF INFORMATION FINANCIAL SUMMARY SUMMARY FINANCIAL INFORMATION OF SUBSIDIARIES (FINANCIAL SITUATION STATEMENT) AS OF DECEMBER 31, 2016 DECEMBER OF AS STATEMENT) SITUATION (FINANCIAL SUBSIDIARIES OF INFORMATION FINANCIAL SUMMARY Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements Annual Report 2017 Annual Report 1,183,548 27,753,853 37,184,605 66,122,006 Th$ 31-12-2017 3,436,811 3,684,309 12,682,088 19,803,208 Th$ 31-12-2016 These correspond to to These correspond activities: operating for charges Other the business, mainly of the operation to services attached signed with developers. agreements the to Correspond activities: operating for payments Other taxes. monthly of payment to mainly These relate activities: investment by outflows Other been capitalized which have with bond issues, associated interest and equipment. plant in property, investments of as a result Cash and cash equivalent Totals Mutual funds (Note 8.6) funds (Note Mutual Fixed-term deposits (Note 8.6) deposits (Note Fixed-term Banks • • • Note 7. Cash And Cash Equivalent And Cash Cash 7. Note follows: the business is as The composition of term in fixed financial assets to corresponds The cash equivalent from than 90 days less of deposits and mutual funds with a maturity them. giving rise to the transaction of the date statement flow in the cash items certain of Detail availability the immediate preventing restrictions no legal are There the Group. used by cash and cash equivalents of 87
Chile 3.24% 6.54% 14.51% Essal S.A. Essal 53.50650% 53.50650% 95.579.800-5 Chilean Pesos Chilean
S.A. Aguas Aguas Chile 1.98% 4.78% 2.28% Manquehue Manquehue 100.00000% 100.00000% 89.221.000-4 Chilean Pesos Chilean
Aguas Aguas Chile 8.21% 9.01% 11.37% 99.99003% 99.99003% Cordillera S.A. Cordillera 96.809.310-k Chilean Pesos Chilean
Aguas Aguas Chile 81.91% 71.64% 80.82% Andinas S.A. 50.10234% 50.10234% 61.808.000-5 Chilean Pesos Chilean Name of significant significant of Name subsidiary Country Tax ID. Tax Functional currency Functional Percentage voting power in power voting Percentage subsidiary significant consolidated of Percentage 31, 2017 December at value Percentage interest in interest Percentage subsidiary significant Property, plant and and plant Property, equipment Contribution margin Contribution year the Income for The subsidiary Aguas Andinas S.A., in the event that it is delinquent it is delinquent that Andinas S.A., in the event Aguas The subsidiary in the loans one of of installment any of in the payment delayed or the for dividends, except distributing from will be prohibited force, minimum. mandatory Detail of significant subsidiaries significant of Detail percentage is based on their subsidiaries significant of The definition and plant property, of share income and their operating of share the regarding year the financial for as income, as well equipment companies are following The statements. financial consolidated subsidiaries: significant considered Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements 15,216 25,312 98320 43,620 949,408 949,408 1,275,867 7,792,445 1,275,867 3,630,278 9,874,779 2,082,334 28,193,771 Th$ 13,312,288 26,687,183 28,193,771 94,019,209 43,629,749 112,198,484 167,642,475 117,453,707 546,341,722 106,234,129 112,312,020 107,578,928 184,135,540 106,303,061 808,952,814 Annual Report 2017 Annual Report 993,088,354 808,003,406 31-12-2016 24,567 55,667 166,687 982,075 560,234 530,032 982,075 560,234 7,436,617 7,807,734 2,276,380 15,201,817 Th$ 10,084,114 115,179,370 88,735,865 40,406,918 34,482,682 113,452,193 168,551,242 34,482,682 63,045,352 124,176,775 113,532,427 114,092,661 115,876,089 213,404,123 545,691,060 802,978,167 803,960,242 31-12-2017 1,017,364,365
9 9 8.7 8.7 8.7 8.7 8.5 8.5 8.5 8.5 Note 8.4 8.4 8.4 8.4 8.4 8.4 8.9
CLP CLP CLP CLP CLP CLP CLP CLP CLP CLP CLP CLP CLP EUR EUR USD USD Currency 88 Class of financial instruments financial Class of Total financial assets financial Total receivable accounts current receivables, and other debtors commercial Total Other non-current financial liabilities non-current Other Accounts receivable from related parties related from receivable Accounts Information about related companies, current about related Information current financial assets, Total Commercial debtors and other accounts receivable accounts and other debtors Commercial Commercial debtors and other accounts receivable accounts and other debtors Commercial receivable accounts and other debtors Commercial Other financial liabilities, current financial Other Total financial liabilities Total Bank loans Bank Bonds financial contributions Reimbursable Bank loans Bank Bonds Notes) (Promissory financial contributions Reimbursable payable, accounts current and other Trade entities related to payable Accounts payable accounts non-current Other Fees receivable Fees financial assets Other financial assets non-current Total current financial liabilities, Total Trade and other accounts payable accounts and other Trade payable accounts and other Trade companies, current about related Information Trade and other accounts payable accounts and other Trade Other accounts payable accounts Other Total non-current financial liabilities non-current Total 8.2 Significant accounting policies accounting 8.2 Significant policies and accounting significant of The detail criteria, the recognition including adopted, methods basis and the basis on which revenues measurement each regarding recognized, are and expenses is and financial liabilities, financial assets class of M and 2 letter L H, 2 letter 2 letter described in Note statements. financial these consolidated of financial instruments 8.3 Class of the financial instruments of is a summary Following and 2016: 31, 2017 December as of Instruments management 8.1 Capital risk the that ensure its capital to manages The Group as an ongoing companies will continue Group profitability maximizing shareholder business by and capital structure. debt the optimizing through changed since has not strategy overall The Group’s debt, of consists capital structure The Group’s 2009. 8.4 and in point disclosed which includes the loans the of holders equity the to the capital attributable includes the capital, reserves which company, parent 3. in Note disclosed earnings and retained Note 8. Financial 8. Financial Note Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements Annual Report 2017 Annual Report
No No No No No No No Secured Secured Secured Secured (Yes/No) (Yes/No)
rate rate At maturity At At maturity At At maturity At At maturity At At maturity At At maturity At At maturity maturity At Repayment Repayment Repayment Repayment
Debtor Rut Debtor Debtor Rut Debtor 96.809.310-k 96.809.310-k 89.221.000-4 89.221.000-4 96.579.800-5 61.808.000-5 61.808.000-5
Essal S.A Issuing company Issuing Issuing company Issuing Aguas Andinas Aguas S.A. Aguas Andinas Aguas S.A. Aguas Cordillera S.A. Cordillera Aguas Aguas Cordillera S.A. Cordillera Aguas Aguas Manquehue S.A. Manquehue Aguas Aguas Manquehue S.A. Manquehue Aguas current regulations, have defined forms and deadlines forms defined have regulations, current return. their for is clients by contributed the amounts of The repayment year - 15 - or 10 the issuance of made through basically cases shorter, and in some notes, promissory endorsable utility water of in the provision repayment through services. as financial contributions the reimbursable of The detail is as follows: and 2016 31, 2017 December of 89
rate 3.12% 3.57% 3.20% 3.20% Chile Chile Chile Effective Effective abroad in Chile or or in Chile Placement Placement
3.32% 3.35% 3.20% 3.57% Actual Actual
interest interest contract rate rate of the of rate 3.10% 3.43% 3.40% Effective Effective
3.54% 3.54% 3.20% Due date Actual Actual 11-12-2032 interest interest 21-12-2032 20-12-2032 contract 20-10-2032 rate of the of rate Th$ Th$ 1,403,714 8,795,278 6,983,609 16,662,840 118,691,514 18,299,860 26,687,183 23,492,843 31-12-2016 31-12-2016 31-12-2016 31-12-2016 167,642,475 Th$ Th$ Contributions, for extension and by capacity, capacity, and by extension for Contributions, available financing option an alternative constitute water provides that (company the service provider to utility water of the execution for services) utility the to according that, works and capacity expansion and cost”. its charge of are Law, works or money of specific amounts of consist They require may service providers public health that or be included as customers, to those who apply to service, which according of expansion an request Carrying amount Carrying amount 523,561 9,130,833 2,306,972 17,241,804 12,371,284 15,201,817 118,712,970 23,465,635 31-12-2017 31-12-2017 31-12-2017 31-12-2017 168,551,242 19,193 631,411 84,060 UF UF 452,507 340,726 863,434 555,760 4,393,764 6,229,335 Residual Residual Residual Residual 31-12-2017 31-12-2017
UF UF UF UF UF UF UF index currency index index currency index Re-adjustment Re-adjustment Re-adjustment Re-adjustment Registration or or Registration Identification the of Number Instrument RFC RFC RFC RFC Totals Registration or or Registration Identification the of Number Instrument Totals RFC RFC RFC Reimbursable Financial Contributions (RFC) Financial Contributions Reimbursable S. the D. of 42-A with article In accordance Financial 1989,”Reimbursable Nº 453 of MINECON Other financial liabilities Other bondsloans, bank financial liabilities include Other (AFRs), financial contributions and reimbursable which are cost, amortized at valued which are below: explained 8.4 Disclosures about financial liabilities about 8.4 Disclosures Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones REIMBURSABLE FINANCIAL CONTRIBUTIONS, CURRENT PORTION CONTRIBUTIONS, CURRENT FINANCIAL REIMBURSABLE REIMBURSABLE FINANCIAL CONTRIBUTIONS, NON-CURRENT PORTION NON-CURRENT CONTRIBUTIONS, FINANCIAL REIMBURSABLE Consolidated Financial Statements Annual Report 2017 Annual Report 7,436,617 7,436,617 72,717,761 72,717,761 7,436,617 7,436,617 16,018,104 16,018,104 36,412,103 36,412,103 16,018,104 16,018,104 96,172,482 96,172,482 36,305,658 36,305,658 88,735,865 0 0 0 0 0 0 CLP Chile 2,734 2,734 2,734 2,734 3.58% 3.58% Essal S.A. Essal 2,502,734 2,502,734 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 At maturity At 97.006.000-6 96.579.800-5 Banco de Chile 0 0 0 0 0 0 CLP Chile 3.43% 3.43% 44,579 44,579 44,579 44,579 Essal S.A. Essal 9,044,579 9,044,579 Banco BCI 9,000,000 9,000,000 9,000,000 9,000,000 9,000,000 At maturity At 97.004.000-7 96.579.800-5 0 0 0 0 0 0 CLP Chile 4.41% 4.41% 228,472 228,472 228,472 228,472 At maturity At 20,228,472 20,228,472 20,000,000 20,000,000 20,000,000 20,000,000 Banco BBVA 20,000,000 97.032.000-8 90 96.809.310-K Aguas Cordillera S.A. Cordillera Aguas 0 0 0 0 0 0 CLP Chile 4.32% 4.32% 222,679 222,679 222,679 222,679 Banco BCI 19,270,304 19,270,304 19,270,304 19,270,304 At maturity At 19,270,304 19,492,983 19,492,983 97.006.000-6 61.808.000-5 Aguas Andinas Andinas Aguas S.A. CLP Chile 4.44% 4.44% 8,141,799 8,141,799 6,938,153 6,938,153 6,938,153 6,938,153 21,947,457 21,947,457 16,018,104 16,018,104 Biannually 16,018,104 13,805,658 16,018,104 13,805,658 37,965,561 44,903,714 44,903,714 97.004.000-5 61.808.000-5 Banco de Chile Aguas Andinas Andinas Aguas S.A. Tax ID of the debtor company debtor the ID of Tax Name of debtor company debtor of Name COUNTRY OF DEBTOR COMPANY COMPANY DEBTOR OF COUNTRY RUT lending institution institution lending RUT Name of creditor company creditor of Name Currency or adjustment unit adjustment or Currency Repayment rate Repayment Effective rate Effective Nominal rate Nominal NOMINAL AMOUNTS NOMINAL year one to Up More than 90 days to one year one to than 90 days More More than 1 year up to 3 years 3 up to year than 1 More More than 1 year up to 2 years 2 up to year than 1 More More than 2 years up to 3 years 3 up to years than 2 More More than 3 years up to 5 years 5 up to years than 3 More More than 3 years up to 4 years 4 up to years than 3 More Total nominal amounts Total BOOK VALUE BOOK loans bank Current More than 90 days to one year one to than 90 days More Non-current bank loans bank Non-current More than 1 year up to 3 years 3 up to year than 1 More More than 1 year up to 2 years 2 up to year than 1 More More than 2 years up to 3 years 3 up to years than 2 More More than 3 years up to 5 years 5 up to years than 3 More More than 3 years up to 4 years 4 up to years than 3 More Total bank loans bank Total Book value = capital+/- issue on/off - issue costs + accrued interest by effective rate method- paid interest and capital. Nominal value = capital+/- accrued interest at issue rate - capital/interest payments. payments. - capital/interest issue rate at = capital+/- accrued interest value and capital. Nominal paid interest method- rate effective by + accrued interest - issue costs = capital+/- issue on/off value Book The detail of bank loans as of December 31, 2017 and 2016 is as follows: 2016 and 31, 2017 December of as loans bank of The detail Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones BALANCES OF BANK LOANS, CURRENT FINANCIAL YEAR FINANCIAL CURRENT LOANS, BANK OF BALANCES Consolidated Financial Statements 3,630,278 3,630,278 6,283,344 6,283,344 27,412,103 27,412,103 3,630,278 3,630,278 16,018,104 16,018,104 97,649,487 97,649,487 44,305,658 44,305,658 50,589,002 50,589,002 94,019,209 43,430,207 43,430,207 Annual Report 2017 Annual Report 0 0 0 0 0 0 0 0 0 0 0 0 0 CLP Chile 4.38% 4.38% 2,074,790 2,074,790 Essal S.A. Essal 2,074,790 2,074,790 2,074,790 2,074,790 Banco BCI At maturity At 97.006.000-6 96.579.800-5 0 0 0 0 0 0 0 0 CLP Chile 4.75% 4.75% 37,015 37,015 37,015 37,015 6,537,015 6,537,015 Essal S.A. Essal 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 At maturity At 97.004.000-7 96.579.800-5 Banco de Chile 0 0 0 0 0 0 0 0 CLP Chile 4.50% 4.50% 21,998 21,998 21,998 21,998 Essal S.A. Essal 4,021,998 4,021,998 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 At maturity At 97.004.000-7 96.579.800-5 Banco de Chile 0 0 0 0 0 0 0 0 CLP Chile 4.41% 4.41% 303,800 303,800 303,800 303,800 At maturity At 20,000,000 20,000,000 20,000,000 20,000,000 20,303,800 20,303,800 Banco BBVA 20,000,000 97.032.000-8 91 96.809.310-K Aguas Cordillera S.A. Cordillera Aguas 0 0 0 0 0 0 0 0 CLP Chile 4.32% 4.32% 286,742 286,742 286,742 286,742 Banco BCI 19,270,304 19,270,304 19,557,046 19,557,046 At maturity At 19,270,304 19,270,304 19,270,304 97.006.000-6 61.808.000-5 Aguas Andinas Andinas Aguas S.A. CLP Chile 4.44% 4.44% 905,933 905,933 905,933 905,933 8,141,799 8,141,799 6,283,344 6,283,344 16,018,104 16,018,104 Biannually 13,805,658 13,805,658 45,154,838 45,154,838 24,159,903 24,159,903 20,089,002 20,089,002 44,248,905 97.004.000-5 61.808.000-5 Banco de Chile Aguas Andinas Andinas Aguas S.A. Tax ID of the debtor company debtor the ID of Tax Name of debtor company debtor of Name COUNTRY OF DEBTOR COMPANY COMPANY DEBTOR OF COUNTRY RUT lending institution institution lending RUT Name of creditor company creditor of Name Currency or adjustment unit adjustment or Currency Repayment rate Repayment Effective rate Effective Nominal rate Nominal NOMINAL AMOUNTS NOMINAL year one to Up Up to 90 days to Up More than 1 year up to 3 years 3 up to year than 1 More More than 1 year up to 2 years 2 up to year than 1 More More than 2 years up to 3 years 3 up to years than 2 More More than 3 years up to 5 years 5 up to years than 3 More More than 3 years up to 4 years 4 up to years than 3 More More than 4 years up to 5 years 5 up to years than 4 More Total nominal amounts Total BOOK VALUES BOOK loans bank Current Up to 90 days to Up Non-current bank loans bank Non-current More than 1 year up to 3 years 3 up to year than 1 More More than 1 year up to 2 years 2 up to year than 1 More More than 2 years up to 3 years 3 up to years than 2 More More than 3 years up to 5 years 5 up to years than 3 More More than 3 years up to 4 years 4 up to years than 3 More More than 4 years up to 5 years 5 up to years than 4 More Total bank loans bank Total Book value = capital+/- issue on/off - issue costs + accrued interest by effective rate method- paid interest and capital. Nominal value = capital+/- accrued interest at issue rate - capital/interest payments. payments. - capital/interest issue rate at = capital+/- accrued interest value and capital. Nominal paid interest method- rate effective by + accrued interest - issue costs = capital+/- issue on/off value Book Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones BALANCES OF BANK LOANS, PREVIOUS YEAR PREVIOUS LOANS, BANK OF BALANCES Consolidated Financial Statements 4,707,861 9,802,476 9,802,476 9,802,476 9,430,280 19,232,756 40,372,861 35,665,000 528,230,317 587,835,934 508,625,365 0 0 0 0 0 0 0 0 Annual Report 2017 Annual Report UF 870 Chile 2.93% 2.80% Besal-C Biannual Essal S.A. 26,798,140 26,798,140 26,798,140 01-12-2040 96.579.800-5 0 UF 284 Chile 6.63% 6.00% Besal-B Biannual 3,102,941 3,102,941 3,102,941 3,102,941 3,102,941 Essal S.A. 3,102,941 6,205,882 20,229,263 26,435,145 35,743,968 01-06-2028 96.579.800-5 0 0 0 0 0 0 UF S.A. 806 Chile 3.29% 3.20% 779,888 779,888 Biannual BAGUA-AA 54,376,168 53,596,280 15-01-2040 53,596,280 61.808.000-5 Aguas Andinas Aguas 0 UF 777 S.A. Chile 2.15% 2.40% 293,035 293,035 Biannual BAGUA-Z 3,349,768 3,349,768 6,699,535 6,699,535 6,699,535 27,091,176 16,748,838 15-01-2023 10,049,303 61.808.000-5 Aguas Andinas Aguas 0 0 0 0 0 0 UF S.A. 806 Chile 3.23% 3.00% 531,997 531,997 BAGUA-X 42,877,024 42,877,024 At maturity At 43,409,021 01-02-2038 61.808.000-5 Aguas Andinas Aguas 0 0 0 0 0 0 UF 778 S.A. Chile 3.18% 3.30% 168,122 168,122 BAGUA-W 61,635,722 61,635,722 At maturity At 61,803,844 01-06-2037 61.808.000-5 Aguas Andinas Aguas 0 0 0 0 0 0 UF 778 S.A. Chile 3.50% 3.50% 464,921 464,921 BAGUA-V 54,061,201 At maturity At 53,596,280 53,596,280 01-04-2037 61.808.000-5 Aguas Andinas Aguas 0 0 0 0 0 0 UF 713 S.A. Chile 3.81% 3.80% 504,421 504,421 92 BAGUA-U 54,100,701 At maturity At 53,596,280 53,596,280 01-04-2036 61.808.000-5 Aguas Andinas Aguas 0 0 0 0 0 0 UF 713 S.A. Chile 3.93% 3.90% 595,185 595,185 BAGUA-S 61,635,722 61,635,722 At maturity At 62,230,907 01-04-2035 61.808.000-5 Aguas Andinas Aguas 0 0 0 0 0 0 UF 712 S.A. Chile 3.61% 3.30% Biannual 2,977,571 2,977,571 BAGUA-R 6,028,239 9,005,810 6,028,239 01-04-2019 61.808.000-5 Aguas Andinas Aguas 0 0 0 0 0 0 UF S.A. 655 Chile 3.94% 4.00% 145,945 145,945 BAGUA-Q 44,216,931 44,216,931 At maturity At 44,362,876 01-06-2032 61.808.000-5 Aguas Andinas Aguas 0 0 0 0 0 0 UF S.A. 655 Chile 3.82% 3.86% 384,225 384,225 BAGUA-P 40,197,210 40,197,210 At maturity At 40,581,435 01-10-2033 61.808.000-5 Aguas Andinas Aguas 0 0 0 0 0 0 UF S.A. 630 Chile 4.15% 4.20% 487,351 487,351 BAGUA-M 46,896,745 At maturity At 46,896,745 47,384,096 01-04-2031 61.808.000-5 Aguas Andinas Aguas 0 0 0 0 0 0 0 0 UF S.A. 580 Chile 4.16% 4.00% BAGUA-J 26,886,591 01-12-2018 At maturity At 26,886,591 26,886,591 61.808.000-5 Aguas Andinas Aguas Country of debtor company company debtor of Country Registration number Registration Name of debtor company company debtor of Name Tax ID of the debtor company the debtor of ID Tax Up to 1 year 1 to Up NOMINAL AMOUNTS NOMINAL Series Up to 90 days to Up Due date More than 90 days to one year one to than 90 days More Currency or adjustment unit adjustment or Currency More than 1 year up to 3 years 3 to up year than 1 More More than 1 year up to 2 years 2 up to year than 1 More More than 2 years up to 3 years 3 up to years than 2 More Periodicity of repayment of Periodicity More than 3 years up to 4 years 4 up to years than 3 More More than 3 years up to 5 years 5 up to years than 3 More Effective rate Effective More than 4 years up to 5 years 5 up to years than 4 More Nominal rate rate Nominal More than 5 years than 5 More Total Nominal amounts Nominal Total TOTAL OBLIGATIONS TO THE PUBLIC, CURRENT FINANCIAL YEAR FINANCIAL CURRENT THE PUBLIC, TO OBLIGATIONS TOTAL Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones The detail of the bond obligations as of December 31 2017 and 2016 is as follows: and 2016 31 2017 December as of the bond obligations of The detail Consolidated Financial Statements 9,347,052 9,725,456 9,725,456 9,725,456 4,843,899 19,072,508 35,563,019 40,406,918 507,167,640 526,618,552 586,097,978 545,691,060 0 0 0 0 0 0 0 0 Annual Report 2017 Annual Report 26,070,290 26,070,290 26,070,290 26,070,290 0 3,311,599 3,311,599 3,013,800 3,013,800 3,013,800 3,013,800 20,112,745 6,027,600 32,167,945 26,140,345 35,479,544 0 0 0 0 0 0 726,472 726,472 53,233,322 52,506,850 52,506,850 52,506,850 0 309,752 309,752 6,711,656 6,711,656 6,711,656 3,355,828 3,355,828 16,779,140 27,156,376 10,067,484 26,846,624 0 0 0 0 0 0 496,076 496,076 41,891,084 42,387,160 41,891,084 41,891,084 0 0 0 0 0 0 114,930 114,930 62,706,531 62,821,461 62,706,531 62,706,531 0 0 0 0 0 0 464,921 464,921 54,061,201 53,596,280 53,596,280 53,596,280 0 0 0 0 0 0 501,681 501,681 93 53,508,723 53,508,723 53,508,723 54,010,404 0 0 0 0 0 0 587,450 587,450 61,461,446 61,461,446 61,461,446 62,048,896 0 0 0 0 0 0 2,977,424 8,972,331 2,977,424 2,977,424 5,994,907 5,994,907 0 0 0 0 0 0 159,259 159,259 44,463,800 44,623,059 44,463,800 44,463,800 0 0 0 0 0 0 393,454 393,454 40,390,431 40,783,885 40,390,431 40,390,431 0 0 0 0 0 0 499,483 499,483 47,103,632 47,603,115 47,103,632 47,103,632 0 0 0 0 0 0 0 0 0 26,846,934 26,846,934 26,846,934 BOOK VALUES BOOK Current public obligations Current Up to 90 days to Up More than 90 days to one year one to days than 90 More Non-current public obligations Non-current More than 1 year up to 3 years 3 to up year than 1 More More than 1 year up to 2 years 2 up to year than 1 More More than 2 years up to 3 years 3 up to years than 2 More More than 3 years up to 4 years 4 up to years than 3 More More than 3 years up to 5 years 5 up to years than 3 More More than 4 years up to 5 years 5 up to years than 4 More Total obligations to the public to obligations Total More than 5 years than 5 More TOTAL OBLIGATIONS TO THE PUBLIC, CURRENT FINANCIAL YEAR FINANCIAL CURRENT THE PUBLIC, TO OBLIGATIONS TOTAL Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements 9,637,813 9,637,813 1,577,960 8,905,925 11,989,510 35,619,850 13,567,470 44,525,775 483,728,004 561,096,875 503,003,630 0 Annual Report 2017 Annual Report UF 284 Chile 6.63% 6.00% Besal-B Biannual Essal S.A. 3,050,818 3,050,818 3,050,818 3,050,818 6,101,636 3,223,684 3,223,684 23,297,053 38,724,009 29,398,689 01-06-2028 96.579.800-5 0 0 0 0 0 0 UF S.A. 806 Chile 3.29% 3.20% 766,788 766,788 Biannual BAGUA-AA 52,695,960 53,462,748 15-01-2040 52,695,960 61.808.000-5 Aguas Andinas Aguas 0 0 UF 777 S.A. Chile 2.15% 2.40% 288,112 288,112 Biannual BAGUA-Z 3,293,498 6,586,995 6,586,995 9,880,493 3,293,498 15-01-2023 23,054,483 26,636,093 61.808.000-5 Aguas Andinas Aguas 0 0 0 0 0 0 UF S.A. 806 Chile 3.23% 3.00% 523,060 523,060 BAGUA-X 42,156,768 42,156,768 At maturity At 42,679,828 01-02-2038 61.808.000-5 Aguas Andinas Aguas 0 0 0 0 0 0 UF 778 S.A. Chile 3.18% 3.30% 165,298 165,298 BAGUA-W At maturity At 60,765,652 60,600,354 01-06-2037 60,600,354 61.808.000-5 Aguas Andinas Aguas 0 0 0 0 0 0 UF 778 S.A. Chile 3.50% 3.50% 457,111 457,111 BAGUA-V 53,153,071 At maturity At 52,695,960 52,695,960 01-04-2037 61.808.000-5 Aguas Andinas Aguas 0 0 0 0 0 0 UF 713 S.A. Chile 3.81% 3.80% 495,948 495,948 BAGUA-U 53,191,908 At maturity At 52,695,960 52,695,960 01-04-2036 61.808.000-5 Aguas Andinas Aguas 94 0 0 0 0 0 0 UF 713 S.A. Chile 3.93% 3.90% 585,187 585,187 BAGUA-S 61,185,541 At maturity At 60,600,354 01-04-2035 60,600,354 61.808.000-5 Aguas Andinas Aguas 0 0 0 0 0 UF 712 S.A. Chile 3.61% 3.30% Biannual 5,855,107 2,927,554 5,974,887 BAGUA-R 8,782,661 5,974,887 14,757,548 01-04-2019 61.808.000-5 Aguas Andinas Aguas 0 0 0 0 0 0 UF S.A. 655 Chile 3.94% 4.00% 143,494 143,494 BAGUA-Q 43,474,167 43,617,661 43,474,167 At maturity At 01-06-2032 61.808.000-5 Aguas Andinas Aguas 0 0 0 0 0 0 UF S.A. 655 Chile 3.82% 3.86% 377,771 377,771 BAGUA-P 39,521,970 39,899,741 39,521,970 At maturity At 01-10-2033 61.808.000-5 Aguas Andinas Aguas 0 0 0 0 0 0 UF S.A. 630 Chile 4.15% 4.20% 479,164 479,164 BAGUA-M 46,108,965 At maturity At 46,588,129 46,108,965 01-04-2031 61.808.000-5 Aguas Andinas Aguas 0 0 0 0 0 0 UF S.A. 580 Chile 4.16% 4.00% 86,966 86,966 BAGUA-J 01-12-2018 26,347,980 At maturity At 26,347,980 26,434,946 61.808.000-5 Aguas Andinas Aguas Total Nominal amounts Nominal Total More than 5 years than 5 More Nominal rate rate Nominal More than 4 years up to 5 years 5 up to years than 4 More Effective rate Effective More than 3 years up to 4 years 4 up to years than 3 More Periodicity of repayment of Periodicity More than 3 years up to 5 years 5 up to years than 3 More Currency or adjustment unit adjustment or Currency More than 2 years up to 3 years 3 up to years than 2 More Due date Series More than 1 year up to 2 years 2 up to year than 1 More Registration number Registration More than 1 year up to 3 years 3 to up year than 1 More Country of debtor company company debtor of Country More than 90 days to one year one to than 90 days More Name of debtor company company debtor of Name Up to 90 days to Up Up to 1 year 1 to Up NOMINAL AMOUNTS NOMINAL Tax ID of the debtor company the debtor of ID Tax TOTAL OBLIGATIONS TO THE PUBLIC, PREVIOUS FINANCIAL YEAR PREVIOUS FINANCIAL THE PUBLIC, TO OBLIGATIONS TOTAL Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements 9,598,341 9,598,341 1,488,346 8,846,476 11,823,942 13,312,288 35,534,073 44,380,549 501,961,173 482,764,491 546,341,722 559,654,010 0 Annual Report 2017 Annual Report 3,129,139 2,997,124 2,997,124 2,997,124 2,997,124 3,129,139 5,994,248 22,948,042 38,065,677 34,936,538 28,942,290 0 0 0 0 0 0 715,837 715,837 51,606,287 52,322,124 51,606,287 51,606,287 0 0 304,639 304,639 6,601,217 6,601,217 9,901,826 3,300,609 3,300,609 23,104,260 26,709,508 26,404,869 0 0 0 0 0 0 467,870 467,870 41,175,282 41,175,282 41,175,282 41,643,152 0 0 0 0 0 0 152,338 152,338 61,790,731 61,638,393 61,638,393 61,638,393 0 0 0 0 0 0 457,111 457,111 53,153,071 52,695,960 52,695,960 52,695,960 0 0 0 0 0 0 493,259 493,259 52,607,020 53,100,279 52,607,020 52,607,020 0 0 0 0 0 0 577,600 577,600 60,422,174 95 60,422,174 60,422,174 60,999,774 0 0 0 0 0 5,931,501 2,924,676 5,931,501 5,849,352 8,774,028 8,774,028 14,705,529 0 0 0 0 0 0 156,553 156,553 43,727,674 43,727,674 43,727,674 43,884,227 0 0 0 0 0 0 386,822 386,822 39,719,854 39,719,854 39,719,854 40,106,676 0 0 0 0 0 0 491,052 491,052 46,321,979 46,813,031 46,321,979 46,321,979 0 0 0 0 0 0 48,567 48,567 26,311,664 26,311,664 26,311,664 26,360,231 BOOK VALUES BOOK public obligations Current Up to 90 days to Up More than 90 days to one year one to days than 90 More Non-current public obligations Non-current years 4 up to years than 3 More More than 1 year up to 2 years 2 up to year than 1 More More than 1 year up to 3 years 3 to up year than 1 More years 3 up to years than 2 More years 5 up to years than 3 More More than 4 years up to 5 years 5 up to years than 4 More the public to obligations Total More than 5 years than 5 More TOTAL OBLIGATIONS TO THE PUBLIC, PREVIOUS FINANCIAL YEAR PREVIOUS FINANCIAL THE PUBLIC, TO OBLIGATIONS TOTAL Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements 656,727 1,625,815 3,034,126 5,846,075 1,360,990 1,620,582 11,014,577 13,297,119 -4,225,493 29,961,568 -31,310,035 105,338,746 -31,310,035 -32,930,617 139,695,430 108,385,395 139,695,430 31-12-2016 Th$ 31-12-2016 31-12-2016 Th$ 31-12-2016 Th$ 31-12-2016 31-12-2016 Th$ 31-12-2016 Annual Report 2017 Annual Report 818,105 1,617,244 3,145,423 1,703,062 4,120,070 11,105,825 -1,811,730 31,920,756 112,247,149 -5,931,800 -33,121,765 13,626,992 -33,121,765 148,930,572 -31,310,035 115,808,807 148,930,572 31-12-2017 Th$ 31-12-2017 Th$ 31-12-2017 31-12-2017 Th$ 31-12-2017 Th$ 31-12-2017 96 Age of the gross debt the gross of Age Credit risk Credit Gross exposure per balance sheet for receivables risks risks receivables for balance sheet per exposure Gross risk receivables for estimates by exposure Gross months three under and six months three between months six and eight between months than eight greater Totals Net exposure, risk concentrations risk exposure, Net Overdue gross debt gross Overdue Movement in credit risk, accounts receivable risk, accounts in credit Movement under three months three under Initial balance Initial between three and six months three between Increase in existing provisions in existing Increase between six and eight months six and eight between Decreases Total changes Total Totals Final balance In accordance with the Group’s policy, consumption debts converted into payment agreements are fully provisioned. fully are agreements payment into converted debts consumption policy, with the Group’s In accordance is as follows: debt the gross age of by The breakdown age is presented: by debt gross the overdue of a detail IFRS 7 Financial Instruments, of with the provisions In accordance due. Balances with contractually when it was a payment make to failed the counterparty where all those amounts is made up of debt The overdue provisioned. not are policy, with the Company’s in accordance than 8 months, less an age of The Company’s objective is to maintain minimum levels of bad bad of minimum levels maintain is to objective The Company’s the conditions which establishes policy, is a credit There debts. upon by be agreed as conditions to well as payment, and types of control, to are: processes The management customers. delinquent perform to in order the uncollectibles and evaluate estimate One accomplishments. the proposed achieve to actions corrective bad debt of levels low maintain to and measures the main actions of is based on analysis for The method the service. of is the interruption debtors. and other clients from data receivable accounts historical Inversiones Aguas Metropolitanas S.A. and its water utility utility S.A. and its water Metropolitanas Aguas Inversiones the credit which implies that market, a fragmented subsidiaries have significant. is not client a particular of risk i. Credit risk i. Credit of failure the loss arising from financial for is the potential risk Credit obligations. their meet to (customers) counterparties our This management is based on identifying the risks, determining the the determining the risks, is based on identifying This management and controlling these financial risks each risk, hedging of tolerance the objectives, achieve To the hedges established. of the operations all significant is based on covering management financial risk place and in are instruments appropriate that provided exposures, is reasonable. the cost 8.5 Risk management 8.5 Risk that to ensure are management financial risk of The main objectives the and protect financial commitments meet to available funds are and liabilities. assets economic flows, the Group’s of value Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements
3.77% 3.09% 0.00% 0.00% Contract Contract interest rate interest Annual Report 2017 Annual Report 0 Th$ 982,075 More than 5 years than 5 More 712,981,236 133,072,021 847,035,332
2.81% 3.96% 3.98% 0.00% Contract Contract interest rate interest 0 Th$ 49,013,779 16,342,446 52,969,275 118,325,500 More than 3 years to 5 years 5 to years than 3 More
3.27% 3.79% 2.99% 0.00% Contract Contract interest rate interest 0 Th$ 53,245,199 75,967,990 22,087,054 From 13 months to 3 years 3 to 13 months From 151,300,243
97 3.21% 3.99% 3.40% 0.00% Contract Contract interest rate interest Th$ 8,992,193 11,262,422 13,039,417 From 90 days to 1 year 1 to 90 days From 53,009,366 86,303,398
3.72% 3.58% 0.00% 0.00% Contract Contract interest rate interest Diversify funding sources and instruments. funding sources Diversify that profiles maturity creditors’ with Agree in one repayments high concentrate do not period. Various preventive measures are used to manage manage used to are measures preventive Various risk, such as: liquidity • • 0 Th$ Up to 90 days to Up 1,170,462 4,451,001 102,836,672 108,458,135 Maturity profile Maturity Bank loans Bank Bonds AFR Commercial and other accounts payable payable accounts and other Commercial Totals MATURITY PROFILES (NON DISCOUNTED FLOWS) PROFILES MATURITY Liquidity risk is periodically monitored in order to perceive, detect and correct deviations in order to minimize possible impacts on results. impacts possible minimize to in order deviations and correct detect perceive, to in order monitored is periodically risk Liquidity Management monitors the Group’s liquidity reserve reserve liquidity the Group’s monitors Management cash flows. based on expected forecasts ii. Liquidity risk ii. Liquidity its meet to ability is the Group’s risk Liquidity with financial liabilities associated obligations or cash of the delivery through settled are that to finance is unable and financial asset another investments such as long-term its commitments, reasonable at capital requirements, and working prices. market Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements Th$ 15,216 70,396 98,320 180,917 596,978 698,095 949,408 3,167,231 1,430,565 17,844,211 32,684,801 22,040,835 34,433,863 31-12-2016 31-12-2016 113,261,428 112,312,020 Annual Report 2017 Annual Report Th$ 70,395 411,347 166,687 727,838 183,842 530,032 982,075 3,484,221 1,940,548 14,570,261 27,349,912 35,332,618 31-12-2017 31-12-2017 32,090,463 116,858,164 115,876,089
CLP CLP CLP CLP CLP CLP CLP CLP CLP CLP EUR USD Currency or or Currency Adjustment unit unit Adjustment Non current sub-total current Non Potable water RFCs RFCs water Potable notes) (promissory Suppliers creditors Various and non Current total current Suppliers and products Accrued services Staff payable Documents Others sub-total Current Suppliers Dividends Suppliers Trade and other and other Trade payable accounts Subcontractors 8.7 Trade and other current and non-current accounts payable accounts non-current and current other and Trade 8.7 follows: as are included in this account The main items 0 0 0 0 0 Th$ 90,016 930,418 840,410 1,183,548 1,420,575 8,887,528 25,015,658 38,368,153 31-12-2016 31-12-2016 0 0 0 0 0 0 Th$ 395,102 245,063 962,605 382,099 1,699,440 12,682,088 31-12-2017 31-12-2017 16,366,397
98 Instruments Term deposit Term deposit Term Term deposit Term deposit Term deposit Term deposit Term deposit Term Mutual funds Mutual funds Mutual funds Mutual funds Mutual funds Mutual Totals Aguas Andinas Aguas S.A. Essal S.A. Inversiones Aguas Aguas Inversiones S.A. Metropolitanas Andinas Aguas S.A. S.A. Cordillera Aguas S.A. del Maipo Aguas Servicios S.A. y Gestión S.A. EcoRiles Aguas Cordillera S.A. Cordillera Aguas S.A. Manquehue Aguas Servicios S.A. y Gestión S.A. EcoRiles Company 8.6 Cash equivalents 8.6 is as in each company financial instruments type of by The breakdown follows: The Company and Subsidiaries make investments with portfolio limits with portfolio investments and Subsidiaries make The Company and limits for issuing Institution, per the total 40% of a maximum of of equity the effective of mutual funds, 10% to: corresponding instruments of equity the effective of deposits 10% term the mutual fund, and for of the bank. % 11.11% 21.21% 67.68% 854,103 100.00% on results on results (Th$) (+/-) Annual impact Annual impact 88.8 (+/-) Points Points
Rate Fixed Fixed Variable Variable rate Variable TAB 180 days TAB 96,172,482 amount (Th$) amount Nominal debt debt Nominal Debt instruments Debt Bank loans Bank Bonds notes) (Promissory RFC Total Inversiones Aguas Aguas Inversiones S.A. Metropolitanas Consolidated Company The analysis is based on historical data with respect to the average the average to with respect data is based on historical The analysis the at years 3 the last of 180 days of the BAR price of market daily level. with a 95% confidence the report, of presentation Interest rate sensitization analysis sensitization rate Interest Active (Banking the BAR to with respect is performed, analysis rate A The method constant. remain variables all other assuming that Rate), change in nominal BARs negative or measuring the positive of consists fixing. loan the last of BAR the average to relative date the reporting at iii. Interest rate risk rate iii. Interest variable and combines fixed that structure has a tariff The Company below: as detailed rates Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements 47,599 65,562 336,170 582,075 580,760 1,888,281 1,939,876 Total Th$ Total Th$ Total 12,517,424 4,858,248 13,099,499 Annual Report 2017 Annual Report 0 0 577 4,175 9,418 2,907 27,674 27,674 57,909 40,833 Others Others Th$ Others Th$ 31-12-2016 31-12-2016 61,771 95,704 43,364 198,384 333,270 408,025 1,769,434 2,501,927 9,643,470 10,051,495 Services Th$ Services Th$ 60 3,791 78,014 174,050 134,880 484,479 1,597,188 2,298,412 2,846,280 3,020,330 Goods Th$ Goods Th$ Totals Up to 30 days 30 days to Up More than 365 days than 365 days More Between 121 and 365 days 121 and 365 days Between Totals 61 and 90 days Between Between 31 and 60 days 31 and 60 days Between Between 31 and 60 days 31 and 60 days Between Up to 30 days 30 days to Up 30 days to Up Current trade accounts accounts trade Current term to according accounts trade Overdue due date by PREVIOUS YEAR: FINANCIAL 99 22,511 11,330 132,107 150,867 327,829 Total Th$ Total Total Th$ Total 2,592,469 2,965,596 3,642,509 18,201,413 6,059,272 21,987,359 0 0 0 14 18 39 2,863 46,012 48,946 532,266 532,266 Others Others Th$ Others Others Th$ 0 0 31-12-2017 31-12-2017 11,330 14,363 50,860 150,849 1,101,558 2,477,956 3,795,586 12,596,035 12,607,365 Services Th$ Services Th$ 0 0 8,109 68,501 132,107 276,955 1,861,175 5,073,112 2,214,740 8,847,728 3,642,509 Goods Th$ Goods Th$ Totals More than 365 days More Between 121 and 365 days 121 and 365 days Between Between 121 and 365 days 121 and 365 days Between Totals Between 61 and 90 days 61 and 90 days Between 61 and 90 days Between Between 31 and 60 days 31 and 60 days Between Between 31 and 60 days 31 and 60 days Between Up to 30 days 30 days to Up Up to 30 days 30 days to Up Overdue trade accounts accounts trade Overdue due date by Current trade accounts accounts trade Current term to according CURRENT YEAR: CURRENT FINANCIAL Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Information regarding trade accounts billed by maturity is as follows: maturity by billed accounts trade regarding Information TRADE ACCOUNTS Consolidated Financial Statements Annual Report 2017 Annual Report 8.9 Other non-current financial assets non-current 8.9 Other Eléctrica Sociedad of shares of the acquisition to mainly It relates Th$7,774,928 and Th$7,790,217 of an amount for S.A. (EPSA) Puntilla h, 2.2, letter (note respectively 2016, and 31, 2017 December as of The influence. significant or control has no the Group which ii), over other to correspond years financial in both Th$17,517 balances of financial investments. with the is maintained this acquisition, an obligation to Associated the to reference with del Maipo, Asociación Sociedad de Canalistas the of the date at in force rights the water move to not commitment 2017 31, December as of Th$7,294,709 of an amount for contract and 2016. 100 The amortized cost of AFR liabilities is a good approximation of fair fair of AFR liabilities is a good approximation of cost The amortized applied the rate operations, illiquid market are since they value, 70). No. (DFL regulation in the stated that to corresponds price based on market determined the bonds was of value The fair under in the market traded are since these instruments references, liquidity. of a high degree conditions and with standard the discounting by determined was debt bank of value The fair at an disbursements) (capital and interest loan each of cash flows This term. the remaining to corresponding rate swap interpolated the between counted days of the number to corresponds term the date until the Financial Statements, of the month of date closing each flow. of the disbursement to corresponding value measuring fair for methodologies to 1 corresponds Level and markets in active (unadjusted) shares market through and liabilities. assets valued considering the same using methodologies measurement value fair to 2 corresponds Level for observable are 1, that included in Level not price data, market indirectly or (prices) directly and liabilities, either assets valued the prices). from (derived using methodologies measurement value fair to 3 corresponds Level and assets valued on which include data techniques, valuation data. market on observable based not are liabilities that b) c) d) in the measurements value fair of recognition Hierarchical Financial Statements Consolidated • • •
Th$ Fair value Fair 3,684,309 97,493,201 12,682,088 16,366,397 183,753,059 914,128,319 632,882,059
Th$ 31-12-2017 3,684,309 96,172,482 12,682,088 16,366,397 183,753,059 586,097,978 866,023,519 Amortized cost Amortized The amortized cost of term deposits and mutual funds is a good deposits and mutual funds is a good term of cost The amortized transactions. short-term are because they value fair of approximation CASH EQUIVALENTS CASH Investments held at fair value fair at held Investments Fixed-term deposits, level 1 deposits, level Fixed-term 1 funds, level Mutual LIABILITIES FINANCIAL OTHER Financial liabilities held Financial liabilities held cost amortized at Bank debt, level 2 level debt, Bank 1 Bonds, level 3 level notes), (promissory RFC The fair values of the main financial assets and liabilities, including thoseassets the main financial of values The fair financial position in the consolidated value fair at presented not are that below: summarized are statement, 8.8 Fair value of financial instruments financial of value 8.8 Fair cost. at amortized carried instruments financial of value Fair Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones a) Methodology and assumptions used in the calculation of fair value fair of used in the calculation and assumptions Methodology using was determined and liabilities financial assets of value The fair methodology: the following Consolidated Financial Statements 0 0 0 66 Th$ 1,080 3,504 21,978 28,215 80,693 1,140,331 1,275,867 31-12-2016 Annual Report 2017 Annual Report 0 0 66 366 Th$ 8,138 15,287 19,485 33,628 205,168 278,096 560,234 31-12-2017
UF218,320 Guarantee UF 10,377.4 UF UF 7,656.06 7,656.06 UF Guarantee of of Guarantee No guarantee No No guarantee No No guarantee No No guarantee No No guarantee No No guarantee No guarantee No of contract for for contract of faithful fulfillment fulfillment faithful
services services services Maipo Project Maipo related parties related Sales of materials of Sales Bidding Rules for Tenders for Bidding Rules Insurance Insurance Trebal collection, Pipelines Cleaning Contract Pipelines Cleaning Nature of the transactions with the transactions of Nature Insurance collection, La Farfana La Farfana collection, Insurance Laboratory analyses and sampling and sampling analyses Laboratory Laboratory analyses and sampling analyses Laboratory Laboratory analyses and sampling analyses Laboratory sewage treatment plant, module 4 module plant, treatment sewage plants in CMPC Santa Fe. Frutos del Frutos Fe. in CMPC Santa plants of the second stage of the Mapocho the Mapocho of the second stage of supply, assembly and commissioning and assembly supply, Consultancy performed by support for support for by performed Consultancy Discount of down payment for equipment equipment for payment down of Discount technical inspection of effluent treatment treatment effluent of inspection technical
controller controller controller controller controller controller controller controller controller Controller relationship Nature of the of Nature Related to the to Related the to Related Related to the to Related the to Related Related to the to Related Related to the to Related Related to the to Related the to Related Related to the to Related 101
Chile S.A. Chile Chile S.A. Chile Chile S.A. Chile Chile S.A. Chile Chile Ltda. Chile Trebal Ltda. Trebal Andina Spa. Andina Spa. Suez Biofactoría Biofactoría Suez Suez Biofactoría Biofactoría Suez Suez International Suez Gran Santiago Ltda. Santiago Gran Suez Medioambiente Medioambiente Suez Suez Medioambiente Medioambiente Suez Suez Medioambiente Medioambiente Suez Suez Medioambiente Medioambiente Suez Name of related party related of Name Empresa Depuradora de Depuradora Empresa Suez Advanced Advanced Suez Solutions Suez Inversiones Aguas del Aguas Inversiones Suez Aguas Servidas Mapocho El Servidas Mapocho Aguas 77.441.870-9 77.441.870-9 77.441.870-9 77.441.870-9 76.746.454-1 76.746.454-1 76.078.231-9 Tax ID of the the ID of Tax 77.329.730-4 related party related 76.080.553-K 59.066.560-6 Total Companies parties related from receivable Accounts in originated parties are related from receivable Accounts and is in Pesos the transactions type of currency the Chile, 30 days. are the maturities Disclosed About Related About Disclosed Related parties with related Balances and transactions and its Subsidiaries the Company between Transactions These conditions. market carried out under are the consolidation in been eliminated have transactions in this note. down broken not and are process Note 9. Information To Be Be To Information 9. Note Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements 0 0 0 0 0 0 0 Th$ 11,477 14,164 14,729 20,210 14,084 23,359 274,911 157,544 170,957 107,442 295,079 2,210,511 3,296,972 2,233,069 31-12-2016 0 0 0 Annual Report 2017 Annual Report 0 0 0 0 Th$ 7,115 11,131 6,579 113,361 142,137 188,612 932,641 815,433 184,854 1,786,747 3,718,527 1,079,276 7,129,098 3,260,791 31-12-2017 Securitize strict compliance with the strict Securitize the contract, arising from obligations UF194,249.62 Amount Guarantee faithful fulfillment of of fulfillment faithful Guarantee Th$845,149 contract for No guarantee No Guarantee faithful fulfillment of of fulfillment faithful Guarantee Amount UF887 contract Guarantee faithful fulfillment of of fulfillment faithful Guarantee Th$279,298 Amount contract No guarantee No No guarantee No Guarantee faithful fulfillment of of fulfillment faithful Guarantee 1,048,050 UF Amount contract, Guarantee faithful fulfillment of of fulfillment faithful Guarantee 1,048,050 UF Amount contract, No guarantee guarantee No No guarantee No Guarantee faithful fulfillment of of fulfillment faithful Guarantee 66,809.74 UF Amount contract, Guarantee faithful fulfillment of of fulfillment faithful Guarantee Amount o$24,264 contract,, No guarantee No Guarantee faithful fulfillment of of fulfillment faithful Guarantee Amount $30,899 contract, No guarantee No Guarantee faithful fulfillment of of fulfillment faithful Guarantee Th$705 contract, No guarantee No Guarantee faithful fulfillment of of fulfillment faithful Guarantee Th$47,110 Amount contract, Guarantee faithful fulfillment of of fulfillment faithful Guarantee Th$26,600 Amount contract, Guarantee faithful fulfillment of of fulfillment faithful Guarantee 14,992 UF: Amount contract, Guarantees 30 days 30 days 30 days 30 days 60 days 30 days 30 days 30 days 30 days 30 days 30 days 30 days 30 days 30 days 30 days 30 days 30 days 30 days 30 days 30 days 30 days Terms 102 Operation and maintenance services, La Farfana Wastewater Wastewater services, La Farfana and maintenance Operation Plant Treatment Service contract for process re-engineering and re-engineering process for Service contract systems service information customer new of implementation Evolutionary maintenance consulting service consulting maintenance Evolutionary Implementation of the geographic information system system information the geographic of Implementation Essal S.A. Purchase of materials of Purchase Virtual Platform, Siebel Virtual Platform, Study on hydraulic infrastructure management models management infrastructure on hydraulic Study Nitrogen removal and adaptation plan for biofactories biofactories plan for and adaptation removal Nitrogen plant. treatment the Mapocho-Trebal of Biofactory adaptation plan for the La Farfana treatment plant treatment the La Farfana plan for adaptation Biofactory Sharing Payment Talagante plant expansion plant Talagante Chamisero Plant Chamisero San Antonio Arsenic Arsenic San Antonio Plant SCADA Platform SCADA CCO 2.0 Operational Control Center Upgrade Project Upgrade Center Control Operational CCO 2.0 Service and modeling of chañaral plant odor panels. odor plant chañaral Service and modeling of Operation and safety update service for Tranque Pudeto Pudeto Tranque service for update and safety Operation and Gamboa. Río Bueno sludge plant Construction and expansion of the La Unión sludge line sludge line La Unión the of and expansion Construction Cleaning service contract for potable water networks networks water potable for service contract Cleaning Pigging) (Ice- Hydraulic Efficiency Project Efficiency Hydraulic Nature of the transactions with related parties with related the transactions of Nature Related to the controller to Related Related to the controller to Related Related to the controller to Related Related to the controller to Related Related to the controller to Related Related to the controller to Related Related to the controller to Related Related to the controller to Related Related to the controller to Related Related to the controller to Related Related to the controller to Related Related to the controller to Related Related to the controller to Related Related to the controller to Related Related to the controller to Related Related to the controller to Related Related to the controller to Related Related to the controller to Related Related to the controller to Related Related to the controller to Related Related to the controller to Related Nature of the relationship of Nature Empresa Depuradora de Aguas Servidas Mapocho Servidas Mapocho Aguas de Depuradora Empresa Ltda. El Trebal Asterión S.A. Asterión Asterión S.A. Asterión Suez Advanced Solutions Chile Ltda. Chile Solutions Advanced Suez Suez Advanced Solutions Chile Ltda. Chile Solutions Advanced Suez Suez Advanced Solutions Chile Ltda. Chile Solutions Advanced Suez Corporación Chilena de Investigación del Agua SpA. Agua del de Investigación Chilena Corporación Suez Biofactoría Andina Spa. Biofactoría Suez Suez Biofactoría Andina Spa. Biofactoría Suez Suez Medioambiente Chile S.A. Chile Medioambiente Suez Suez Medioambiente Chile S.A. Chile Medioambiente Suez Suez Medioambiente Chile S.A. Chile Medioambiente Suez Suez Medioambiente Chile S.A. Chile Medioambiente Suez Suez Medioambiente Chile S.A. Chile Medioambiente Suez Suez Medioambiente Chile S.A. Chile Medioambiente Suez Suez Medioambiente Chile S.A. Chile Medioambiente Suez Suez Medioambiente Chile S.A. Chile Medioambiente Suez Suez Medioambiente Chile S.A. Chile Medioambiente Suez Suez Medioambiente Chile S.A. Chile Medioambiente Suez Suez Medioambiente Chile S.A. Chile Medioambiente Suez Suez Medioambiente Chile S.A. Chile Medioambiente Suez Name of related party related of Name 76.078.231-9 76.046.628-K 76.046.628-K 76.080.553-K 76.080.553-K 76.080.553-K 65.113.732-2 76.746.454-1 76.746.454-1 77.441.870-9 77.441.870-9 77.441.870-9 77.441.870-9 77.441.870-9 77.441.870-9 77.441.870-9 77.441.870-9 77.441.870-9 77.441.870-9 77.441.870-9 77.441.870-9 Tax ID of the the ID of Tax party related Accounts payable to related companies related to payable Accounts type the in Chile, originated are companies related to payable Accounts is in Pesos. the transactions of currency of Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements 0 0 0 Th$ 9,044 44,165 79,376 69,466 4,169,732 2,363,175 12,614,305 28,193,771 31-12-2016 0 Annual Report 2017 Annual Report 79 Th$ 3,377 11,013 10,000 277,451 105,347 220,514 2,563,461 11,915,138 31,919,222 31-12-2017
Guarantee faithful fulfillment fulfillment faithful Guarantee 218,320 UF for contract of No guarantee No No guarantee No No guarantee No No guarantee No No guarantee No No guarantee No No guarantee No No guarantee No Guarantee faithful fulfillment fulfillment faithful Guarantee UF357,863 for contract of Guarantees
30 days 30 days 30 days 30 days 30 days 30 days 30 days 30 days 30 days 90 days Terms
103 Status of payment for equipment supplies, assembly and supplies, assembly equipment for payment of Status the of the second stage commissioning of 4 module Plant, Treatment Wastewater Mapocho Performance management system system management Performance Consultancies Consultancies and Advisories Chamisero Plant, Batuco channel Batuco Plant, Chamisero Reliquidation for electrical supply electrical for Reliquidation Dividends payable Integrated talent management contract management talent Integrated Environmental monitoring services monitoring Environmental Biogas Plant Operation Services Operation Biogas Plant Digestor operation, maintenance and rehabilitation services services and rehabilitation maintenance operation, Digestor Plant Treatment Sewage Trebal-Mapocho the for Nature of the transactions with related parties with related the transactions of Nature
Related to the controller to Related Related to the controller to Related Related to the controller to Related Related to the controller to Related Related to the controller to Related Related to the controller to Related Related to the controller to Related Related to the controller to Related Related to the controller to Related Related to the controller to Related Nature of the relationship of Nature
Suez International Suez Suez España Suez Corporación Chilena de Investigación de Investigación Chilena Corporación del Agua SpA. Asociación canalistas sociedad sociedad Asociación canalistas del canal del Maipo EPSA Electrica Puntilla S.A. Puntilla Electrica EPSA Suez Inversiones Aguas del Gran Santiago Ltda. Santiago del Gran Aguas Inversiones Suez Aqua Development Network S.A. Network Development Aqua Servicios y Proyectos Ambientales S.A. Ambientales Proyectos y Servicios Empresa Depuradora de Aguas Servidas Aguas de Depuradora Empresa Ltda. Trebal El Mapocho Empresa Depuradora de Aguas Servidas Aguas de Depuradora Empresa Ltda. Trebal El Mapocho Name of related party related of Name Total 59.066.560-6 B63152664 65.113.732-2 70.009.410-3 96.817.230-1 77.329.730-4 Sin Rut 96.799.790-0 76.078.231-9 76.078.231-9 Tax ID of the the ID of Tax party related Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements 0 0 0 0 0 0 0 -83,218 -141,515 -217,048 -753,429 -743,230 -303,081 -1,594,194 -13,513,945 -10,853,222 Annual Report 2017 Annual Report (Charge) / Credit) (Charge) Effects on Income on Income Effects Th$ 0 0 0 31-12-2016 141,515 179,218 217,048 799,652 753,429 303,081 Amount 2,275,124 17,170,776 3,040,561 3,675,000 12,169,065 35,818,348 22,144,406 0 0 0 0 -11,600 -63,670 -58,306 -329,351 -443,287 -246,888 -1,019,235 -9,019,614 -2,201,648 -1,003,829 -5,239,223 -10,143,011 (Charge) / Credit) (Charge) Effects on Income on Income Effects Th$ 0 31-12-2017 20,650 329,351 379,828 443,287 Amount 1,710,756 1,019,235 3,113,835 3,631,109 1,003,829 6,302,180 2,264,623 8,445,350 12,764,170 37,727,636 12,086,671 104 The materiality criterion for reporting transactions with related parties is with related transactions reporting for criterion The materiality Th$100,000. of in excess amounts accumulated for CCO 2.0 Operational Control Center Upgrade Project Project Upgrade Center Control Operational CCO 2.0 the and commissioning of supplies, assembly Equipment module plant, treatment sewage the Mapocho of second stage 4 services for and rehabilitation maintenance operation, Digestor Plant Treatment Sewage the Trebal-Mapocho Nature of the transactions the transactions of Nature parties with related contract management talent Integrated materials of Purchase Service Contract Ice-Pigging Plant Chamisero Project Efficiency Hydraulic Arsenic San Antonio Plant Lower flow compensation flow Lower urban water resilient of the management on models for Study risks, and geological hydrological to in relation infrastructures sludge. of valorization Dividends paid Operation and maintenance services of the La Farfana the La Farfana services of and maintenance Operation Plant Treatment Wastewater Biogas plant services for and maintenance Operation Trebal plant, treatment water of and maintenance Operation works construction plant Service contract for process re-engineering and implementation and implementation re-engineering process for Service contract systems service information customer new of Related to the controller to Related the controller to Related the controller to Related Nature of the of Nature relationship the controller to Related the controller to Related the controller to Related the controller to Related the controller to Related the controller to Related Common director the controller to Related Controller Related to the controller to Related the controller to Related the controller to Related Related to the controller to Related Suez Medioambiente Chile S.A. Chile Medioambiente Suez International Suez Aguas de Depuradora Empresa Trebal El Servidas Mapocho Suez Medioambiente Chile S.A. Chile Medioambiente Suez S.A. Chile Medioambiente Suez Aqua Development Network Development Aqua Solutions Chile Advanced Suez Ltda. S.A. Chile Medioambiente Suez S.A. Chile Medioambiente Suez Name of related party related of Name EPSA Eléctrica Puntilla S.A. Puntilla Eléctrica EPSA de Chilena Corporación SpA. Agua del Investigación del Gran Aguas Inversiones Suez Ltda. Santiago Empresa Depuradora de Aguas Aguas de Depuradora Empresa Trebal El Servidas Mapocho Andina spa. Biofactoría Suez Empresa Depuradora de Aguas Aguas de Depuradora Empresa Trebal El Servidas Mapocho Asterión S.A. Asterión 59.066.560-6 76.078.231-9 77.441.870-9 77.441.870-9 77.441.870-9 77.441.870-9 77.441.870-9 Sin Rut 76.080.553-K Tax ID of the the ID of Tax party related 77.329.730-4 65.113.732-2 96.817.230-1 76.078.231-9 76.746.454-1 76.078.231-9 79.046.628-K Transactions with related parties with related Transactions and the currency in Chile, originated parties are with related Transactions is Pesos. the transactions type of Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements
13,000 13,000 9,203,521 44,760,678 -35,557,157 -12,567,307 218,734,963 231,302,270 227,951,484 -48,124,464 276,075,948 31-12-2016 Th$ 31-12-2016 Annual Report 2017 Annual Report
13,000 13,000 7,910,586 48,876,011 -12,754,522 219,160,913 231,915,435 -53,719,947 -40,965,425 227,084,499 280,804,446 31-12-2017 Th$ 31-12-2017 Trademarks, net Trademarks, Net intangible assets intangible Net net software, Computer Other intangible assets, net* net* assets, intangible Other assets intangible Gross gross Trademarks, gross software, Computer * gross assets, intangible Other accrued amortization assets, Intangible accumulated programs, Computer amortization accumulated assets, intangible Other amortization
* Corresponds to water rights, easements and others. easements rights, water to * Corresponds Note 11. Intangible Assets Other Other Assets 11. Intangible Note Gains Than Capital the Company’s to with respect required are disclosures The following Assets: 38 Intangible IAS with in accordance assets, intangible 752,216 133,941 2,423,788 3,309,945 31-12-2016 Th$ 31-12-2016 102,347 1,177,531 2,645,500 3,925,378 31-12-2017 Th$ 31-12-2017 105 Other inventories Other Totals INVENTORIES CLASSES INVENTORIES Goods production Supplies for The cost of inventories recognized as an expense in the income in the as an expense recognized inventories of The cost Th$11,339,400 to amounts and 2016 31, 2017 December as of statement respectively. Th$11,127,313, y Note 10. Inventories 10. Note The breakdown by class of inventories as of December 31, 2017 and 2016 and 2016 31, 2017 December as of inventories class of by The breakdown is as follows: 90,726 807,396 898,122 31-12-2016 Th$ 31-12-2016 108,073 911,649 803,576 31-12-2017 Th$ 31-12-2017 Board of directors of Board committee Directors’ Total Detail of related companies and transactions with companies related with companies related companies and transactions related of Detail and Executives the Directors to between transactions any of aware is not management The Company’s daily than their other executives, and/or parties and directors related and compensation. allowances subsistence At the end of 2017, 93 professionals were on the payroll for managers managers for on the payroll were 93 professionals 2017, the end of At Total and its subsidiaries. the company of executives and senior billion, and the $9,478 was year in the received compensation $61 million. service was of years executive senior for compensation They correspond solely to fees associated with their functions defined defined functions with their associated fees to solely correspond They Meeting. Shareholders’ the Ordinary at and agreed Remunerations paid to the directors of Inversiones Aguas Aguas Inversiones of the directors to paid Remunerations committees and directors’ A. and Subsidiaries S. Metropolitanas Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements Th$ Th$ Total Total -12,551 843,614 -266,379 3,154,121 1,836,816 2,576,886 2,904,233 4,728,498 272,921,827 276,075,948 276,075,948 280,804,446 Annual Report 2017 Annual Report Th$ Th$ -158 -12,551 581,823 613,165 625,874 -36,626 -261,977 283,220 231,915,435 231,302,270 231,302,270 231,019,050 assets, gross assets, gross assets, Other intangible intangible Other intangible Other 0 Th$ Th$ -4,402 880,240 1,836,974 4,115,333 2,278,359 1,995,063 programs programs 2,870,901 41,889,777 48,876,011 44,760,678 44,760,678 Gross computer computer Gross computer Gross 0 0 0 0 0 0 0 0 Th$ Th$ Gross Gross Gross 13,000 13,000 13,000 13,000 trademarks trademarks Increases (decreases) due to due to (decreases) Increases transfers MOVEMENTS IN INTANGIBLE IN INTANGIBLE MOVEMENTS ASSETS 01-01-2017 balance as of Initial IN INTANGIBLE MOVEMENTS ASSETS 01-01-2016 balance as of Initial Increases (decreases) due (decreases) Increases transfers to due (decreases) Increases changes other to Disposals and decommissioning changes Total 31-12-2016 Final balance as of Total changes Total Final balance as of 31-12-2017 Final balance as of Increases (decreases) due to due to (decreases) Increases changes other Disposals and decommissioning PREVIOUS FINANCIAL YEAR: DECEMBER 31, 2016 YEAR: DECEMBER PREVIOUS FINANCIAL CURRENT FINANCIAL YEAR: DECEMBER 31, 2017 YEAR: DECEMBER FINANCIAL CURRENT Detailed disclosures about intangible assets (gross value) (gross assets about intangible disclosures Detailed 106 Th$ Th$ Total Total -12,551 814,013 -261,977 1,836,816 -866,985 2,576,886 2,904,233 -5,705,127 -5,595,483 -2,576,205 227,951,484 227,951,484 230,527,689 227,084,499 Th$ Th$ -158 -12,551 96,005 581,823 625,874 -36,626 -187,215 -187,215 -261,977 425,950 assets, Net Net assets, Net assets, 219,160,913 218,734,963 218,734,963 218,638,958 Other intangible intangible Other intangible Other 0 0 Th$ Th$ 850,639 1,995,063 1,836,974 -5,517,912 programs programs 11,875,731 9,203,521 2,278,359 9,203,521 7,910,586 programs programs -2,672,210 -5,408,268 -1,292,935 Net computer computer Net Net computer computer Net 0 0 0 0 0 0 0 0 0 0 Th$ Th$ 13,000 13,000 13,000 13,000 Net trademarks Net Net trademarks Net Initial balance as of 01-01-2016 balance as of Initial MOVEMENTS IN INTANGIBLE IN INTANGIBLE MOVEMENTS ASSETS Initial balance as of 01-01-2017 balance as of Initial Amortization MOVEMENTS IN INTANGIBLE IN INTANGIBLE MOVEMENTS ASSETS Final balance as of 31-12-2016 Final balance as of Amortization Disposals and decommissioning changes Total Increases (decreases) due to due to (decreases) Increases transfers due to (decreases) Increases changes other Total changes Total Increases (decreases) due to due to (decreases) Increases transfers due to (decreases) Increases changes other Disposals and decommissioning 31-12-2017 Final balance as of MOVEMENTS IN INTANGIBLE ASSETS AS OF DECEMBER 31, 2016 DECEMBER OF AS ASSETS IN INTANGIBLE MOVEMENTS MOVEMENTS IN INTANGIBLE ASSETS AS OF DECEMBER 31, 2017 DECEMBER OF AS ASSETS IN INTANGIBLE MOVEMENTS Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements 0 0 0 0 0 0 0 Th$ Others 4,949,427 4,949,427 0 0 0 0 Annual Report 2017 Annual Report Th$ 744,190 7,761,746 1,087,305 8,296,216 17,889,457 Easements 31-12-2016 Th$ 13,700 13,700 13,700 13,700 21,814,071 5,509,828 76,262,225 92,702,860 196,343,784 Water rights Water 0 0 0 0 0 0 0 Th$ Others 4,761,309 4,761,309 0 0 0 0 Th$ 866,673 7,761,932 1,095,557 8,407,422 18,131,584 Easements 31-12-2017 Th$ 13,700 13,700 13,700 13,700 5,609,125 76,364,281 21,954,837 92,732,686 196,715,729 Water rights Water COMPANY Andinas Aguas S.A. S.A. Cordillera Aguas Aguas Manquehue S.A. Manquehue Aguas Essal S.A. Aguas del Maipo S.A. del Maipo Aguas Ecoriles S.A. Ecoriles Gestión y Servicios S.A. y Gestión Análisis Ambientales Análisis Ambientales S.A. Total Detail of significant individual intangible assets (others): assets individual intangible significant of Detail of assets the main intangible are and easements rights Water follows: is as company by breakdown and their service life indefinite 107 Th$ Th$ Total Total 4,402 -29,600 -5,705,128 -5,595,483 -5,730,326 -5,595,483 -53,719,947 -42,394,138 -48,124,464 -48,124,464 0 0 Th$ Th$ -187,215 -187,215 -187,215 -187,215 -12,567,307 -12,754,522 -12,567,307 -12,380,092 amortization amortization assets, accrued assets, assets, accrued assets, Other intangible intangible Other Other intangible intangible Other Th$ Th$ 4,402 -29,600 -5,517,913 -5,543,111 -5,408,268 -35,557,157 -35,557,157 -5,408,268 -30,014,046 -40,965,425 Computer programs, programs, Computer accrued amortization Computer programs, programs, Computer accrued amortization 0 0 0 0 0 0 0 0 0 0 Th$ Th$ accrued accrued trademarks, trademarks, amortization trademarks, trademarks, amortization Initial balance as of 01-01-2016 balance as of Initial Amortization MOVEMENTS IN INTANGIBLE IN INTANGIBLE MOVEMENTS ASSETS Initial balance as of 01-01-2017 balance as of Initial amortization MOVEMENTS IN INTANGIBLE IN INTANGIBLE MOVEMENTS ASSETS Increases (decreases) due to due to (decreases) Increases transfers Disposals and decommissioning changes Total 31-12-2016 Final balance as of Total changes Total 31-12-2017 Final balance as of PREVIOUS FINANCIAL YEAR: DECEMBER 31, 2016 YEAR: DECEMBER PREVIOUS FINANCIAL CURRENT FINANCIAL YEAR: DECEMBER 31, 2017 YEAR: DECEMBER FINANCIAL CURRENT Detailed disclosures about intangible assets (accrued amortization) (accrued assets about intangible disclosures Detailed Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements 343,332 2,066,631 33,823,049 271,348,419 307,581,431 31-12-2016 Th$ 31-12-2016 Annual Report 2017 Annual Report 343,332 2,066,631 33,823,049 271,348,419 307,581,431 31-12-2017 Th$ 31-12-2017
Inversiones Iberaguas Ltda. Iberaguas Inversiones Empresa de Servicios Sanitarios de Los Lagos S.A. Lagos de Servicios Sanitarios de Los Empresa Aguas Cordillera S.A. Cordillera Aguas Company Aguas Andinas Aguas S.A. 108 Total 96.897.320-7 96.579.800-5 96.809.310-k RUT 61.808.000-5 Note 12. Capital Gains 12. Capital Note The detail of the capital gains on the various Cash Generating Units Units Generating Cash various the capital gains on the of The detail as of assigned are they which to thereof groups or (CGUs) is as follows: and 2016 31, 2017 December Th$ 10,000 50,000 310,000 1,529,470 1,899,470 Aguas Cordillera S.A. Cordillera Aguas Essal S.A. Total Aguas Manquehue S.A. Manquehue Aguas Aguas Andinas Aguas S.A. COMPANY Commitments for the acquisition of intangible assets intangible of the acquisition for Commitments water to 2018 relate for acquisition commitments asset The intangible the normal for necessary programs and computer easements rights, works the new for and, in particular, companies the Group of operation of as the expansion as well study, of stages prior or development under below: presented which are the concession areas, Intangible assets with indefinite service lives with indefinite assets Intangible for the Company by held rights are and easements rights water Both is, the that service life, a finite establish to possible which it is not are with these assets associated benefits the economic of terms extinguish will not that rights legal constitute assets Both indefinite. restrictions. to subject not and are Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements Annual Report 2017 Annual Report 0 0 Th$ -550,129 -8,749,724 -4,591,494 -1,948,030 -4,455,904 31-12-2016 -54,104,353 -29,140,045 -19,380,305 -95,075,388 -311,240,072 -142,599,706 -260,962,791 -219,503,423 -1,152,301,364 0 0 Th$ -533,013 Accrued depreciation Accrued -1,792,236 -4,574,515 -4,710,087 31-12-2017 -10,267,468 -31,409,947 -59,108,556 -20,898,955 -148,622,781 -318,185,220 -273,414,628 -102,365,769 -243,550,976 -1,219,434,151 Th$ 109 611,414 2,187,881 6,341,474 5,297,680 11,410,302 197,861,144 40,632,428 31-12-2016 131,523,642 318,823,106 160,070,637 508,150,937 180,506,784 103,580,338 474,364,900 305,539,500 2,446,902,167 Th$ Gross values Gross 597,279 5,912,615 2,023,017 6,030,116 13,927,703 111,011,034 43,248,022 31-12-2017 160,461,335 492,846,317 519,580,232 316,220,864 156,563,062 150,469,536 363,890,587 228,440,366 2,571,222,085 Th$ 61,285 239,851 706,186 1,885,570 2,660,578 21,252,123 99,319,683 74,440,293 36,448,254 143,756,791 247,188,146 31-12-2016 163,124,828 162,939,794 160,070,637 180,506,784 1,294,600,803 Th$ Net values Net 64,266 230,781 1,338,100 1,320,029 3,660,235 48,103,767 79,601,087 22,349,067 31-12-2017 174,661,097 120,339,611 169,331,810 160,461,335 167,598,083 156,563,062 246,165,604 1,351,787,934 Totals Non-operating assets Non-operating Other Facilities Other Wastewater treatment plants treatment Wastewater Sewerage networks Sewerage Potable water networks water Potable Production Facilities Production Complementary works Complementary Construction in progress Construction Lease rights improvements rights Lease Computer equipment Computer Equipment and accessories Equipment Transport Equipment Transport Machinery Buildings Land PROPERTY, PLANT AND EQUIPMENT AND EQUIPMENT PLANT PROPERTY, Property, Plant And Equipment Plant Property, Note 13. 13. Note Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements 36,941,486 48,899,019 114,676,687 425,156,518 186,999,132 136,909,773 281,365,270 408,471,886 1,639,419,771 Th$ Annual Report 2017 Annual Report Fair value Fair 31-12-2017 48,103,767 79,601,087 22,349,067 120,339,611 174,661,097 169,331,810 167,598,083 246,165,604 1,028,150,126 Th$ Cost Machines and equipment Machines Totals Other Facilities Other Wastewater treatment plants treatment Wastewater Sewerage networks Sewerage Potable water networks water Potable Production Facilities Production Complementary works Complementary Buildings CLASSES ASSETS CLASSES OF In accordance with IAS 16 paragraph 79 (d), the Group presents information information presents the Group 79 (d), paragraph 16 with IAS In accordance its main assets: of value the fair regarding 110 % 1% 1% 2% 2% 2% 3% 3% 4% 0% 0% 0% 0% 0% 0% 91% 20% Others % 9% 8% 6% 0% 0% 11% 11% 11% 11% 11% 11% 17% 12% 11% 15% 13% Essal S.A S.A Essal 1% 2% 2% 2% 3% 4% 6% 0% 0% 0% 0% 0% 0% 5% 12% 13% S.A % S.A Aguas Aguas Manquehue Manquehue % 1% 7% 2% 5% 4% 4% 0% 0% 0% 0% 8% 11% 17% 15% 13% 68% Aguas Aguas Cordillera S.A S.A Cordillera % 9% 81% 75% 75% 57% 75% 87% 67% 32% 83% 75% 93% 88% 64% 68% 80% Aguas Aguas Andinas S.A Andinas S.A Th$ 64,266 230,781 1,338,100 1,320,029 3,660,235 48,103,767 79,601,087 22,349,067 31-12-2017 120,339,611 174,661,097 169,331,810 160,461,335 167,598,083 156,563,062 246,165,604 1,351,787,934 PROPERTY, PLANT PLANT PROPERTY, NET AND EQUIPMENT, Land Buildings Machinery Transport equipment Transport Equipment and Equipment accessories Computer equipment Computer Lease rights rights Lease improvements Construction in Construction progress Complementary works Complementary Production Facilities Production Potable water networks water Potable Sewerage networks Sewerage Wastewater treatment treatment Wastewater plants Other Facilities Other Non-operating assets Non-operating Totals Information on the main investments of the Group companies is presented companies is presented the Group of on the main investments Information table: in the following Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements Th$ 64,266 230,781 1,338,100 1,320,029 3,660,235 48,103,767 79,601,087 22,349,067 120,339,611 174,661,097 169,331,810 160,461,335 167,598,083 156,563,062 246,165,604 1,351,787,934 Final balance Annual Report 2017 Annual Report Th$ 2,981 -9,070 613,843 999,657 390,698 -547,470 5,160,794 1,096,944 11,655,513 57,187,131 4,658,289 -1,022,542 11,536,269 21,019,928 25,575,019 -23,943,722 Total changes Total 0 0 0 0 0 0 Th$ -727 -288 -1,520 -39,549 -48,588 -58,560 -183,719 -182,709 -254,884 -770,544 Disposals and Disposals decommissioning 0 396 Th$ 35,620 641,797 358,524 282,036 866,553 7,573,167 1,837,109 11,511,813 3,221,057 -805,590 1,354,380 Increases Increases 10,925,891 90,797,576 128,600,329 other changes other (decreases) due to due to (decreases) 0 Th$ 3,785 32,239 107,734 431,694 8,178,116 1,174,846 7,189,676 2,351,518 9,821,279 3,849,660 15,936,914 28,827,826 -1,836,807 111 34,940,644 in progress in progress -114,682,738 due to transfers transfers due to from constructions constructions from Increases (decreases) (decreases) Increases 0 0 Th$ -9,070 -29,654 -176,375 -507,105 -2,172,183 -7,502,170 -7,164,493 -1,529,569 -5,041,328 -1,535,090 -6,029,543 -12,445,369 -24,663,898 -68,805,847 Depreciation Th$ 61,285 239,851 706,186 1,885,570 2,660,578 21,252,123 99,319,683 74,440,293 36,448,254 143,756,791 247,188,146 163,124,828 162,939,794 160,070,637 180,506,784 Initial balance Initial 1,294,600,803 Property, plant and equipment classes, net classes, and equipment plant Property, Non-operating assets Non-operating Other Facilities Other Wastewater treatment plants treatment Wastewater Sewerage networks Sewerage Potable water networks water Potable Production facilities Production Complementary works Complementary Construction in progress Construction Lease rights improvements rights Lease Computer equipment Computer Equipment and accessories Equipment Transport Equipment Transport Machinery Buildings Land CONCEPT MOVEMENTS OF PROPERTY, PLANT AND EQUIPMENT AS OF DECEMBER 31, 2017 (NET) 31, 2017 DECEMBER OF AS AND EQUIPMENT PLANT PROPERTY, OF MOVEMENTS Reconciliation of changes in property, plant and equipment by class by and equipment plant property, changes in of Reconciliation each class for is provided 73, information paragraph 16 in IAS As stated the company. of and equipment plant property, of Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements Th$ 61,285 239,851 706,186 1,885,570 2,660,578 21,252,123 99,319,683 74,440,293 36,448,254 143,756,791 247,188,146 163,124,828 162,939,794 160,070,637 180,506,784 Final balance 1,294,600,803 Annual Report 2017 Annual Report Th$ -1,348 18,062 73,235 -21,783 172,874 203,842 -276,081 -254,542 -353,290 8,014,618 -3,931,037 -2,832,120 13,918,039 -4,557,544 36,273,966 46,446,891 Total changes Total 0 0 0 0 -3 -151 Th$ -122 -247 -17,961 -16,788 -52,540 -134,519 -159,257 -204,135 -1,216,471 -1,802,194 Disposals and and Disposals decommissioning Th$ 4,754 86,646 -13,595 749,626 557,909 245,023 906,270 1,519,751 -374,897 1,216,474 1,790,281 7,823,028 6,605,575 Increases Increases 4,040,989 85,246,536 110,404,370 other changes other (decreases) due to due to (decreases) Th$ 1,356 21,475 61,542 45,651 39,568 120,471 250,610 908,308 1,216,496 -843,629 3,853,169 2,463,372 6,963,502 15,733,702 15,233,248 112 in progress in progress -47,756,099 due to transfers transfers due to from constructions constructions from Increases (decreases) (decreases) Increases 0 0 Th$ -9,228 -27,893 -114,232 -544,319 -6,771,912 -5,722,133 -1,996,991 -1,453,845 -1,294,088 -5,919,380 -4,450,160 -11,901,067 -61,311,656 -21,106,408 Depreciation Th$ 83,068 241,199 688,124 2,140,112 2,487,704 21,048,281 74,367,058 36,724,335 155,110,210 147,687,828 103,877,227 149,021,755 144,232,818 160,423,927 250,020,266 1,248,153,912 Initial balance Initial Property, plant and equipment classes, net classes, and equipment plant Property, Non-operating assets Non-operating Other Facilities Other Wastewater treatment plants treatment Wastewater Sewerage networks Sewerage Potable water networks water Potable Production Facilities Production Complementary works Complementary Construction in progress Construction Lease rights improvements rights Lease Computer equipment Computer Equipment and accessories Equipment Transport Equipment Transport Machinery Buildings Land CONCEPT MOVEMENTS OF PROPERTY, PLANT AND EQUIPMENT AS OF DECEMBER 31, 2016 (NET VALUE) (NET 31, 2016 DECEMBER OF AS AND EQUIPMENT PLANT PROPERTY, OF MOVEMENTS Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements Annual Report 2017 Annual Report Th$ 597,279 5,912,615 2,023,017 6,030,116 13,927,703 111,011,034 43,248,022 160,461,335 492,846,317 519,580,232 156,563,062 316,220,864 150,469,536 363,890,587 228,440,366 Final balance 2,571,222,085 Th$ -14,135 732,436 390,698 -164,864 2,517,401 -428,859 2,615,594 7,430,696 18,481,417 11,429,295 10,681,364 45,067,481 30,579,222 18,945,894 -23,943,722 124,319,918 Total changes Total 0 0 Th$ -17,960 -57,782 -61,763 -12,386 -84,752 -46,770 -79,430 -58,560 -218,441 -164,864 -585,025 -254,884 -800,987 -2,443,604 Disposals and and Disposals decommissioning 0 396 Th$ 48,432 641,797 358,524 282,036 860,085 -667,990 1,354,941 1,836,148 7,579,635 3,070,743 11,510,182 Increases Increases 10,927,824 90,797,576 113 128,600,329 other changes other (decreases) due to due to (decreases) 0 Th$ 3,785 32,239 107,734 431,694 8,178,116 1,174,846 7,189,676 2,351,518 9,821,279 3,849,660 15,936,914 28,827,826 -1,836,807 34,940,644 in progress in progress -114,682,738 due to transfers transfers due to from constructions constructions from Increases (decreases) (decreases) Increases Th$ 611,414 2,187,881 6,341,474 5,297,680 11,410,302 40,632,428 197,861,144 131,523,642 318,823,106 508,150,937 160,070,637 180,506,784 103,580,338 474,364,900 305,539,500 2,446,902,167 Initial balance Initial Property, plant and equipment classes, gross classes, and equipment plant Property, Non-operating assets Non-operating Other Facilities Other Wastewater treatment plants treatment Wastewater Sewerage networks Sewerage Potable water networks water Potable Production Facilities Production Complementary works Complementary Construction in progress Construction Lease rights improvements rights Lease Computer equipment Computer Equipment and accessories Equipment Transport Equipment Transport Machinery Buildings Land CONCEPT DETAILED DISCLOSURES ABOUT PROPERTY, PLANT AND EQUIPMENT (GROSS VALUE) (GROSS AND EQUIPMENT PLANT PROPERTY, ABOUT DISCLOSURES DETAILED 31, 2017 YEAR: DECEMBER FINANCIAL CURRENT Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements Th$ 611,414 2,187,881 6,341,474 5,297,680 11,410,302 40,632,428 197,861,144 131,523,642 318,823,106 160,070,637 508,150,937 180,506,784 103,580,338 474,364,900 305,539,500 Final balance 2,446,902,167 Annual Report 2017 Annual Report Th$ 6,110 7,880 22,644 121,082 -113,580 1,657,552 -353,290 2,057,597 1,223,855 19,331,541 9,069,048 5,606,034 14,783,440 14,889,826 36,273,966 104,583,705 Total changes Total 0 0 0 0 Th$ -381 -17,961 -11,243 -65,169 -31,566 -426,317 -243,214 -654,872 -433,256 -1,216,471 -1,849,771 -4,950,221 Disposals and and Disposals decommissioning Th$ 4,754 86,674 -13,595 258,134 749,625 557,045 906,270 -374,897 1,784,431 1,216,459 7,819,938 4,024,156 1,506,349 Increases Increases 6,605,676 85,246,536 110,377,555 other changes other (decreases) due to due to (decreases) 114 Th$ 1,356 21,475 61,542 45,651 39,568 120,471 250,610 908,308 1,216,496 -843,629 3,853,169 2,463,372 6,963,502 15,733,702 15,233,248 in progress in progress -47,756,099 due to transfers transfers due to from constructions constructions from Increases (decreases) (decreases) Increases Th$ 605,304 5,176,598 2,180,001 6,455,054 10,186,447 38,974,876 101,522,741 125,917,608 144,232,818 160,423,927 197,838,500 286,207,959 459,581,460 499,081,889 303,933,280 2,342,318,462 Initial balance Initial CONCEPT Land Buildings Machinery Transport Equipment Transport Equipment and accessories Equipment Computer equipment Computer Lease rights improvements rights Lease Construction in progress Construction Complementary works Complementary Production Facilities Production Potable water networks water Potable Sewerage networks Sewerage Wastewater treatment plants treatment Wastewater Other Facilities Other Non-operating assets Non-operating Property, plant and equipment classes, gross classes, and equipment plant Property, PREVIOUS FINANCIAL YEAR: DECEMBER 31, 2016 YEAR: DECEMBER PREVIOUS FINANCIAL Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements Th$ -533,013 -4,574,515 -1,792,236 -4,710,087 -10,267,468 -31,409,947 -59,108,556 -20,898,955 -148,622,781 -318,185,220 -273,414,628 -102,365,769 Final balance -243,550,976 -1,219,434,151 Annual Report 2017 Annual Report Th$ 17,116 -118,611 155,794 -118,593 -1,517,744 -1,518,650 -7,290,381 -6,945,148 -6,023,075 -2,269,902 -12,451,837 -5,004,203 -67,132,787 -24,047,553 Total changes Total 0 0 Th$ 57,782 61,475 12,386 39,881 36,164 46,770 16,440 217,714 618,278 164,864 401,306 1,673,060 Disposals and and Disposals decommissioning 0 0 0 0 0 961 Th$ -561 1,631 6,468 -1,933 -6,468 -12,812 150,314 -137,600 Increases Increases other changes other (decreases) due to due to (decreases) 115 Th$ -9,070 -29,654 -176,375 -507,105 -2,172,183 -7,502,170 -7,164,493 -1,529,569 -5,041,328 -1,535,090 -6,029,543 -12,445,369 -24,663,898 -68,805,847 Depreciation Th$ -550,129 -8,749,724 -4,591,494 -1,948,030 -4,455,904 -54,104,353 -29,140,045 -19,380,305 -95,075,388 -311,240,072 -142,599,706 -219,503,423 -260,962,791 Initial balance Initial -1,152,301,364 CONCEPT Land Buildings Machinery Transport Equipment Transport Equipment and accessories Equipment Computer equipment Computer Lease rights improvements rights Lease Construction in progress Construction Complementary works Complementary Production Facilities Production Potable water networks water Potable Sewerage networks Sewerage Wastewater treatment plants treatment Wastewater Property, plant and equipment classes, gross and equipment plant Property, DETAILED DISCLOSURES ABOUT PROPERTY, PLANT AND EQUIPMENT (ACCUMULATED DEPRECIATION) (ACCUMULATED AND EQUIPMENT PLANT PROPERTY, ABOUT DISCLOSURES DETAILED 31, 2017 YEAR: DECEMBER FINANCIAL CURRENT Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements Th$ Th$ 74,359 156,422 230,781 -550,129 Net value Net -8,749,724 -4,591,494 -1,948,030 -4,455,904 -54,104,353 -29,140,045 -19,380,305 -95,075,388 -311,240,072 -142,599,706 -219,503,423 -260,962,791 Final balance -1,152,301,364 Annual Report 2017 Annual Report Th$ -9,228 -27,893 -140,962 -103,020 -1,453,710 -5,882,115 -1,050,981 -1,984,362 -5,413,502 -3,953,681 -6,768,822 -11,901,168 -19,447,370 -58,136,814 Th$ Total changes Total -117,910 -1,674,326 -1,792,236 0 0 0 0 134 Th$ Accumulated depreciation Accumulated 31,415 11,240 12,629 291,798 495,615 416,468 243,092 1,645,635 3,148,026 Disposals and and Disposals Th$ decommissioning 274,332 1,748,685 2,023,017 Gross value Gross 1 0 0 0 15 -28 864 Th$ -101 5,850 3,090 -13,111 16,833 13,402 26,815 to other changes other to Increases (decreases) due (decreases) Increases 116 Th$ -9,228 -27,893 -114,232 -544,319 -6,771,912 -5,722,133 -1,996,991 -1,453,845 -1,294,088 -5,919,380 -4,450,160 -11,901,067 -21,106,407 -61,311,655 Depreciation Total Aguas Cordillera S.A. Cordillera Aguas COMPANY Andinas Aguas S.A. Temporarily idle elements of property, plant and equipment: plant property, of elements idle Temporarily Th$ -522,236 -7,698,743 -4,314,942 -1,938,802 -4,488,474 -27,155,683 -17,926,595 -89,193,273 -50,150,672 Th$ -137,186,204 -304,471,250 -249,061,623 -200,056,053 Initial balance Initial 77,128 -1,094,164,550 35,000 163,200 6,931,411 5,104,407 15,394,073 120,233,227 147,938,446 Land CONCEPT Essal S.A. S.A. EcoRiles Servicios S.A. y Gestión Análisis Ambientales S.A. Total Aguas Manquehue S.A. Manquehue Aguas Aguas Andinas Aguas S.A. COMPANY Aguas Cordillera S.A. Cordillera Aguas Buildings Machinery Transport Equipment Transport Equipment and accessories Equipment Computer equipment Computer Lease rights improvements rights Lease Construction in progress Construction Complementary works Complementary Production Facilities Production Potable water networks water Potable Sewerage networks Sewerage Wastewater treatment plants treatment Wastewater Property, plant and equipment classes, accumulated classes, accumulated and equipment plant Property, depreciation Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones PREVIOUS FINANCIAL YEAR: DECEMBER 31, 2016 31, YEAR: DECEMBER FINANCIAL PREVIOUS Commitments for the acquisition of property, plant and equipment plant property, the acquisition of for Commitments of the amounts of company, Group each consolidated by The detail, 2018 for and equipment plant property, acquire to commitments future is as follows: Consolidated Financial Statements Annual Report 2017 Annual Report The Superintendence of Sanitation Sanitation of The Superintendence provision: the class of of Nature and its Andinas S.A. Aguas has imposed fines on Services (SISS) non-compliance with instructions to Subsidiaries due mainly by service provided of and quality the continuity of violation and to amounted in 2016 claims filed the of The total the Company. the initiating to paid prior were Th$795,062 which of Th$946,650, claims process. class outputs: Undetermined. provision of calendar Expected class: It a provision of about the timing and amount Uncertainties and the infringements incur did not Company the that is considered will be accepted. the claims that it is estimated therefore Sanitation of class: The Superintendence provision of Nature Andinas Aguas against procedure a sanction Services initiated collection to sewage due overflows sewage to S.A. in relation El Bosque and San Bernardo, of in the municipalities obstruction discussion. under which is currently class outputs: Undetermined. provision of schedule Expected class: a provision of about the timing and amount Uncertainties 301 of an amount for Andinas Aguas fines initiated, The procedure this decision and made against was a reversal An appeal for UTA. on. been ruled has not Sanitation of class: The Superintendence provision of Nature Andinas Aguas against procedures sanction two Services initiated b) a) 11, letters Article 18.902, Law of breaches alleged S.A., regarding caused service interruptions water the potable of this due to and c), Macul. of in the municipality the main pipeline of the rupture by class outputs: Undetermined. provision of schedule Expected class: a provision of about the timing and amount Uncertainties a Andinas determines Aguas against initiated The fine procedure to the claim. was paid prior The fine UTA. 101 of amount readjusted a) a) b) c) -31,751 547,288 1,277,574 -448,719 1,277,574 2,561,407 2,628,225 2,628,225 2,628,225 2,080,937 31-12-2016 Th$ 31-12-2016 31-12-2016 Th$ 31-12-2016 -161,112 302,543 -24,406 -165,837 1,301,105 2,603,819 1,301,105 2,628,225 2,603,819 2,603,819 31-12-2017 Th$ 31-12-2017 31-12-2017 Th$ 31-12-2017 117 Provisions, non current Provisions, Other provisions, non current provisions, Other Other provisions, current provisions, Other CLASSES OF PROVISIONS OF CLASSES claims* legal for Provision Totals Changes in provisions, totals Changes in provisions, Other increase (decrease) increase Other Provision used Provision Increase in existing provisions in existing Increase LEGAL CLAIMS LEGAL balance provisions Initial The description of the provisions included in this account is as follows: included in this account the provisions of The description CLAIMS 1. LEGAL in which it is highly court judgments for the provision records The Company and Subsidiaries. the Company to will be unfavorable the result that likely the affect could that claims provisions the legal of The detail is as follows: Company * In accordance with the policy established by the Company’s subsidiaries, regarding the subsidiaries, regarding policy with the * In accordance established the Company’s by the Group to awarded as collateral associated with the projects the documents of treatment those cases in which the collateral is for recognized income was to companies, a charge customers. the Company’s by be executed to expected is as follows: year the for provisions in current The movement Note 15. Provisions And Contingent And Contingent 15. Provisions Note Liabilities A. Provisions is as 2016 and 31, 2017 December as of this account of The breakdown follows: As of December 31, 2017 and 2016, impairment tests were performed performed were tests impairment and 2016, 31, 2017 December As of These the Group. to available and projections based on estimates to the investments attributable the profits that indicated estimates consolidated their exceed individually values associated with lower with indefinite assets in all cases, and the intangible carrying amount than that value higher in a resulting evaluated, were service lives in the books. recorded The Company and Subsidiaries perform annual impairment tests tests annual impairment and Subsidiaries perform The Company of value lower and service lives indefinite of assets on intangible investments. For the lower values, the calculation of their value in use is carried out, value their of the calculation values, the lower For of estimates using recent companies as CGUs, considering the different according parameters the different determining budgets, medium-term established are The parameters used models in the market. widely to to specific and which are rates risk-free for information valid through and assets own each company’s of life the service market, the relevant account taking into companies, for rates growth the usual revenue years. the over and changes in consumption growth population For intangible assets with indefinite service lives, water rights, a valuation valuation a rights, water service lives, indefinite with assets intangible For values with the compared prices, which are market is carried out at study IFRS standards. of adoption of the date at assigned as deemed cost Disclosures about impairment of assets per cash-generating unit cash-generating per assets of about impairment Disclosures as a whole, (CGU) Unit a Cash Generating as is defined Each Company economic future generating of is capable since each one individually generate that assets of group smallest the represents and benefits the Company standard, with the In accordance cash flows. independent is there whether date, closing statement each financial assesses, at exists, such an indication If an asset. of impairment of indication any the asset. of amount the recoverable shall estimate the Company for tested be shall and appreciation service life with an indefinite Assets is there whenever or year the financial the end of at least at impairment impairment. of evidence Note 14. Impairment Of Assets Of 14. Impairment Note Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements Annual Report 2017 Annual Report amount claimed amounts to Th$1,093,564. The counterclaim was was The counterclaim Th$1,093,564. to claimed amounts amount the pay to ordered Andinas was Aguas and in its entirety rejected to the appeal and the filed An appeal was Th$ 185,538. sum of accepted. was plaintiff main water potable a ruptured of and as a result 2016 9, June On Andinas Aguas Providencia, of the commune affected pipeline that parties. In response third the damages caused to S.A. compensated and notified is being monitored the Company this emergency, to the Superintendence by process the sanctioning of the initiation of pending its discharges, filed The Company Services. Sanitation of the authority. ruling by Service regarding Consumer the National sued by was The Company April 2017. and in February occurred that interruptions the supply for fines and compensation the court set have to seeks The lawsuit the service interruption. by affected the users each of Providencia, of the Municipality sued by Andinas was Aguas the Potable of the Failure the damages caused by to regarding in the 22nd filed The lawsuit 2016. 9, June pipeline on Main Water municipal of the payment contemplates Santiago, Civil Court of affected of carried out in the repair works of the execution for fees flooding. of as a result roads 2. 3. 4. small claims other to party and its Subsidiaries are The Company adverse a material have will not they that It is considered lawsuits. companies. respective the of statements on the financial effect 118 Uncertainties about the timing and amount of a provision class: class: a provision of about the timing and amount Uncertainties to filing claims in court. prior was consigned in cash, the fine of 10% Andinas S.A. Aguas the claim; rejecting was issued final ruling A in all its was accepted the ruling, which an appeal against filed was an appeal, which filed defendant The the fine. parts overturning be consigned. must amount so the outstanding accepted, has applied Authority utility Water class: The provision of Nature claim is Essal S.A.; a legal the subsidiary to sanctions administrative the Company. by being filed of in process class outputs: Undetermined. provision of calendar Expected class: a provision of about the timing and amount Uncertainties the Chilean imposed by penalties to claims corresponding The legal Th$63,369. to amount Treasury damages for lawsuit sued in an ordinary Andinas S.A. was Aguas the for Mining Company, by suffered the damages allegedly for on land in which the infrastructure the company’s of installation mining claims, causing the mining company owns allegedly plaintiff The minerals. of the extraction preventing damage by an alleged g) NON-CURRENT PROVISIONS, 2. OTHER 2007, 10, July on dated the transaction to corresponds This basically Toledo, Acharan María Gloria Mrs. of office Public’s the Notary signed at in which it is assumed S.A. and developers, Cordillera Aguas between S.A. withdraws Cordillera Aguas in the future that in the event that 52,273.29. U.F. least at pay it, it must to and sells the land transferred with the receivable debt the existing will be added to Said amount developers. liabilities B. Contingent 1. The Metropolitan COREMA applied a fine applied a fine COREMA class: The Metropolitan provision of Nature alleged 2004 for 28, May of 177/2004 No. Resolution 500 UTM by of the La of Resolution Qualification the Environmental of breach Plant. Treatment Wastewater Farfana class outputs: Undetermined. provision of calendar Expected class: a provision of about the timing and amount Uncertainties An in court. the claim to initiate paid in order was the fine of 10% in the is filed The file the Court is pending. issued by report expert the claim will be is a medium chance that There court archive. accepted. by 300 UTM of applied a fine class: CONAMA provision of Nature infraction alleged 2005, for 17, February 069/2005 of No. Resolution Treatment Wastewater La Farfana the coming from bad smells for the drying field. sludge from of the removal due to Plant class outputs: Undetermined. provision of calendar Expected class: a provision of about the timing and amount Uncertainties the claim in court; there to initiate was paid in order the fine of 10% Notification the claim will be accepted. that probability is a low the rejected pending, which ruling is currently instance the first of claim. company’s for 500 UTM of applied a fine class: CONAMA provision of Nature 458/01. non-compliance with RCA alleged class outputs: Undetermined. provision of calendar Expected Ruling was passed that reduced the fine to 81 UTA. The appraisal The appraisal to 81 UTA. the fine reduced passed that Ruling was are regulation costs and personal the proceedings of the costs of pending. e) f) d) Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements 0 0 0 0 0 Th$ 17,113 17,126 13,174 13,169 76,212 10,538 15,809 52,696 392,111 146,231 173,790 987,786 724,569 300,103 1,613,391 1,123,446 1,193,440 2,287,664 32,697,128 31-12-2016 31-12-2016 Annual Report 2017 Annual Report Th$ 10,719 17,405 17,606 13,394 13,399 13,399 26,798 53,596 34,298 86,962 99,448 127,046 276,616 221,538 305,231 173,000 624,557 398,810 2,187,564 2,667,164 1,418,460 1,025,538 2,193,208 31-12-2017 31-12-2017 39,858,136
Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Type of guarantee of Type
S.A. S.A. S.A. S.A. S.A. S.A. S.A. S.A. S.A. S.A. Essal S.A. Essal S.A. Essal S.A. Essal S.A. Essal S.A. Essal S.A. Essal S.A. Anam S.A. Anam S.A. Anam S.A. Anam S.A. Anam S.A. EcoRiles S.A. EcoRiles Debtor name Debtor Aguas Cordillera Cordillera Aguas Cordillera Aguas Cordillera Aguas Aguas Cordillera Cordillera Aguas Cordillera Aguas Cordillera Aguas Aguas Manquehue Manquehue Aguas Aguas Manquehue Manquehue Aguas Aguas Manquehue Manquehue Aguas Gestión y y Servicios Gestión Superintendencia del Medio Ambiente del Medio Superintendencia S.A. CMPC PULP del Cobre Nacional Corporación Aguas del Valle Esval S.A. Esval Total Superintendencia de Servicios Sanitarios de Servicios Superintendencia Servicio de Vivienda y Urbanismo Urbanismo y Vivienda Servicio de Metropolitano Publicas - Dirección de Obras Ministerio General de Aguas S.A. Sembcorp Utilities (Chile) Municipalidad de Vitacura Hidráulicas de Obras Director Urbanismo y Vivienda Servicio de Paillaco de Municipalidad Vialidad de Director de Los de la Región Gobierno Regional Ríos Lagos Sociedad Concesionaria de Los Urbanismo y Vivienda Servicio de Municipalidad de Las Condes Municipalidad Barnechea Lo Municipalidad Municipalidad de Vitacura Sanitarios de Servicios Superintendencia Industria Surlat Asociación de Canalistas Sociedad del Asociación de Canalistas Canal Maipo Creditor of the Guarantee of Creditor 119 0 0 0 0 Th$ 20,156 42,785 18,496 31,440 53,592 24,504 441,250 108,448 909,783 652,933 6,457,521 1,204,472 7,507,300 6,066,080 31-12-2016 31-12-2016 Th$ 18,812 43,516 31,440 24,922 53,596 53,349 64,634 66,995 175,126 110,301 169,418 925,327 448,788 1,125,773 1,235,769 8,762,875 7,608,765 6,932,974 31-12-2017 31-12-2017 Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Banking L/C Type of guarantee of Type S.A. S.A. Debtor name Debtor Aguas Cordillera Cordillera Aguas Cordillera Aguas Aguas Andinas Aguas S.A. Aguas Andinas Aguas S.A. Aguas Andinas Aguas S.A. Aguas Andinas Aguas S.A. Aguas Andinas Aguas S.A. Aguas Andinas Aguas S.A. Aguas Andinas Aguas S.A. Aguas Andinas Aguas S.A. Aguas Andinas Aguas S.A. Aguas Andinas Aguas S.A. Aguas Andinas Aguas S.A. Aguas Andinas Aguas S.A. Aguas Andinas Aguas S.A. Aguas Andinas Aguas S.A. Aguas Andinas Aguas S.A. Aguas Andinas Aguas S.A. Superintendencia de Servicios Sanitarios Superintendencia Sociedad Asociación de Canalistas del Canal Maipo Municipalidad de Macul Municipalidad Municipalidad de Santiago Municipalidad Municipalidad de La Pintana Municipalidad Municipalidad de Peñalolen Municipalidad CGE Distribución Ruta del Maipo Comité Innovación Chile Innovación Comité Municipalidad de La Reina Municipalidad Municipalidad de Providencia de Municipalidad Dirección Regional de Vialidad de Regional Dirección Constructora San Francisco Constructora Municipalidad de La Florida de Municipalidad Dirección de Obras Hidráulica de Obras Dirección Superintendencia de Servicios Sanitarios de Servicios Superintendencia Asociación de Canalistas Sociedad Asociación de Canalistas del Canal Maipo Servicio de Vivienda y Urbanismo Urbanismo y Vivienda Servicio de Metropolitano Creditor of the Guarantee of Creditor The breakdown of the main guarantees exceeding Th$10,000 is as follows: Th$10,000 exceeding the main guarantees of The breakdown 1. DIRECT GUARANTEES 1. DIRECT various of in favor granted been have credit of letters and guarantee Policies Services; to Sanitation of among the main ones is the Superintendence institutions, the of programs and development services of provision the for the conditions guarantee of replacement guarantee to Metropolitano SERVIU company, the of concession areas Th$33,458,982 and Th$40,556,790 sum of the for institutions, other and to pavements respectively. 2016, and 31, 2017 December as of Note 16. Guarantees And Restrictions And Guarantees 16. Note Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements 1.93 Límit Annual Report 2017 Annual Report Covenant 1.5 Base 29.00% inflation Accumulated Accumulated 116.46 31-12-2017 Base CPI 2009 90.28 services granted by the S. I. S. S.). For the Greater Santiago), except except Santiago), the Greater For the S. I. S. S.). by services granted Subsidiaries. to assets essential of transfers or contributions for and annual, quarterly both statements, the financial of copy A be submitted must within the same period in which they audited public information any Commission, and of the Financial Market to the Commission. to provided arising from the provisions books, in its accounting record To the Company’s in the opinion of that, contingencies adverse Not to sell, assign or transfer essential assets (concession of public public of (concession assets essential transfer sell, assign or to Not 31-12-2009 The Company complies with all the requirements established in the in the established complies with all the requirements The Company and 2016. 31, 2017 December as of bond contracts S.A.) Lagos S.A. (Essal de los de Servicios Sanitarios Empresa b) bond arising from and obligations restrictions maintains The Company as follows: and are market issuing made in the domestic 1. 2. * Amount of all guarantees, simple and joint and bonds, co-signed and bonds, co-signed and joint simple all guarantees, of Amount * its or the Company that real, or personal guarantees, other bonds or with obligations, third-party guarantee to granted Subsidiaries have its Subsidiaries for or the Issuer by (i) those granted of: the exception Issuer’s by granted Subsidiaries; (ii) those Issuer’s other of obligations granted and (iii) those the Issuer; of obligations Subsidiaries for utility compliance with water guarantee bodies to government to in public spaces. works of and the execution legislation is as level the debt in the limit of variation the 31, 2017, December As of follows: 6. 609,330 237,111,903 -237,111,903 866,468,756 693,299,477 -866,468,756 1,796,880,136 1,104,189,989 1,103,580,659 120 Total current liabilities current Total Total assets Total liabilities non-current Total Total NIIF liabilities NIIF Total liabilities payable Total equity net Total Total non-current liabilities non-current Total parties (*) with third Guarantees Total current liabilities current Total Payable Liabilities and Total Net Worth. Issuer’s Payable Liabilities shall Liabilities shall Payable Issuer’s Worth. Net Total and Liabilities Payable Non- Total Liabilities and Current Total the of as the sum be defined Financial Statements. in its Consolidated Liabilities accounts Current the amount index, the aforementioned determining of the purposes For guarantees, other bonds or and several joint or simple all guarantees, of to granted its subsidiaries have or the Issuer that real, or personal liabilities, included in the payable are obligations, third-party guarantee its Subsidiaries for or the Issuer by (i) those granted for: except Issuer’s by Subsidiaries, (ii) those granted Issuer’s other of obligations to and (iii) those granted the Issuer, of obligations Subsidiaries for and legislation utility compliance with water guarantee public bodies to in public spaces. works of the execution to shall correspond Equity Net Total purposes, the foregoing For Assets Total the between the difference from resulting the amount Total Liabilities and Current Total the and the sum of Accounts Financial Consolidated in the Issuer’s Accounts Liabilities Non-Current Statements. as are accounts the aforementioned 31, 2017, December As of (Th$): follows is: 1.59 times. 31, 2017 December as of The leverage To send to the Bonds Holders’ representative a copy of both the the both of a copy representative the Bonds Holders’ send to To well as as statements, financial and annual consolidated quarterly with the Financial registered Corporations the Subsidiary those of within the same time period in which Commission, audited Market Commission, the Financial Market to be delivered must they the Financial Market to provided information public any and of Commission. adverse arising from the provisions books in its accounting record To management, the Company’s opinion of in the that, contingencies and/or statements financial in the Company’s be reflected must its subsidiaries. those of assets, its operational protects reasonably that insurance Maintain and office furniture plants, buildings, including its headquarters, usual with the Company’s in accordance vehicles, and equipment the Company. of the nature of industries for practices with its transactions that ensure to undertakes The Company conditions carried out under parties are related other Subsidiaries or in the market. those prevailing to similar equity of Financial the Issuer’s of each quarter the end of at maintain To than 1.5 times. Notwithstanding no higher Level a Debt Statements, limit will be adjusted the aforementioned the aforementioned, of Price Index the Consumer between the quotient to according and the December is calculated Level in which the Debt the month limit will the aforementioned However, Price Index. 2009 Consumer times. 2 of a maximum level up to be set 2. 3. 4. 5. between ratio as the will be defined Level these purposes, the Debt For 1. a) Aguas Andinas Aguas a) S.A. bond from arising and obligations restrictions maintains The Company as follows: and these are market domestic issues made in the 2. RESTRICTIONS DUE TO BOND ISSUING TO DUE 2. RESTRICTIONS Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements Annual Report 2017 Annual Report with the obligations of the loan agreement. the loan of with the obligations the mandatory for except dividends, distribute to Prohibition of in the payment delay or default of is a situation there minimum if the loan. of installment any to or expenses equal financial of a hedging ratio Maintain in its the figures on the basis of than 3 times, measured greater ratio as the defined and individual balance sheets, consolidated and year the for income plus depreciation operating between expenses. financial divided by assets intangible of amortization its liquidate to the Company, dissolve or liquidate to Prohibition into enter to its business; or constitute businesses that or operations in except consolidation, or the merger to tending contract or act any Subsidiaries. with its current a merger the case of with its Subsidiaries or transactions that ensure to It is obligated equity conditions of carried out under are parties related other in the market. those prevailing to similar times, measured than one and a half no higher of leverage A balance sheets. in its consolidated the figures on the basis of in shall be adjusted limit the above the foregoing, Notwithstanding Price Index the Consumer between with the quotient accordance and the consumer is calculated in which the leverage the month for up limit will be adjusted The above 2009. December for price index will be these purposes, the leverage times. For two a maximum of to As equity. total liabilities and payable between ratio as the defined times. 0.58 was the leverage 31, 2017, December of to or expenses equal financial of hedging ratio a Maintain 7. 8. 9. 10. S.A. Cordillera Aguas b) obtained having due to and restrictions has obligations The Company are and restrictions bank, these obligations a national from a loan hereinafter: detailed 1. 2. 121 A leverage of no higher than one and a half times, measured times, measured than one and a half no higher of leverage A balance sheets. in its consolidated figures the on the basis of in limit shall be adjusted the above the foregoing, Notwithstanding Price Index the Consumer between with the quotient accordance consumer and the is calculated in which the leverage the month for limit will be adjusted The above 2009. December for price index ended on year financial the times, for two a maximum of up to amounts the leverage in the limit of variation the 31, 2017, December as will be defined these purposes, the leverage 1.93 times. For to As of equity. net liabilities and total payable between the ratio times. 1.59 was the leverage 31, 2017, December except assets, essential to title of loss on the disposal or Prohibition Subsidiary to assets essential of transfers or contributions for Companies. five exceeding within a period not and annual, audited Quarterly Commission. the Financial Market to delivery of days adverse arising from the provisions books in its accounting record To management, the Company’s in the opinion of that, contingencies statements. in its financial be reflected must including its assets, protects reasonably that insurance Maintain and office furniture inventory, plants, buildings, its headquarters, usual with the Company’s in accordance vehicles, and equipment industries. nature for practices compliance stating CEO, the Company’s by issued Send a certificate 3. RESTRICTIONS DUE TO BANK LOANS BANK TO DUE 3. RESTRICTIONS Andinas Aguas a) S.A. obtained having due to and restrictions has obligations The Company and restrictions these obligations banks, domestic with several loans hereinafter: detailed are 1. 2. 3. 4. 5. 6.
Maintain insurance that reasonably protect its assets, in accordance in accordance assets, its protect reasonably that insurance Maintain nature. the Company’s of industries for with the usual practices with its transactions that ensure to undertakes The Company to similar equity conditions of under carried out parties are related in the market. those prevailing on the than 1.29 times, measured no higher a leverage maintain To payable between ratio as the defined figures, balance sheet basis of and equity. liability management, must be reflected in its financial statements. in its financial be reflected must management, Beginning in 2010, the above limit will be adjusted according to to according limit will be adjusted the above Beginning in 2010, in the month for Price Index the Consumer between the quotient of Price Index and the Consumer is calculated which the leverage a maximum up to limit will be adjusted The above 2009. December Worth). Net Liabilities/Total 2 times (Indebtment=Payable of level the times for is 1.29 and 1.66 the leverage 31, 2017, December As of series, respectively. and BESSALB BESSALC than 3.5 less not of Expenses ratio an Ebitda/Financial maintain To 7.4 to amounts indicated the ratio 31, 2017, December times as of times. assets. essential transfer sell, assign or to Not 4. 5. 3. 6. 7. in the established complies with all the requirements The Company and 2016. 31, 2017 December as of bond contracts
Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements Annual Report 2017 Annual Report
Due date 18-11-2018 13-12-2018 11-02-2018 30-11-2019 11-04-2018 01-01-2018 10-01-2018 21-06-2018 29-01-2018 26-01-2018 02-01-2018 15-03-2018 15-06-2018 13-08-2018 13-08-2018 16-04-2019 03-07-2018 30-07-2018 28-10-2020 05-02-2019 02-04-2018 02-04-2018 30-05-2018 30-03-2018 30-08-2018 30-05-2022 191,712 107,193 107,193 107,193 103,761 375,174 178,743 133,991 319,272 827,785 130,766 367,337 286,124 108,676 284,541 158,305 100,359 301,399 496,784 655,696 669,954 450,606 1,790,377 1,292,559 1,805,422 13,904,056 25,254,978 31-12-2017 Th$ 31-12-2017 warranties for service contracts and procurement of materials that that materials of procurement and service contracts for warranties said materials. of delivery the timely guarantee December as of received guarantees bank important the most of Details hereinafter: summarized are 31, 2017 122 Sociedad de Tercerización de Servicios Provider Latin America Ltda. Latin de Servicios Provider Tercerización Sociedad de S.A. 3 Chile Level Total BAPA S.A. BAPA S.A. EULEN Chile Ingeniería Ltda. Luxagua Ltda. Sur Pacifico Nueva Constructora y Inmobiliaria Claro Vicuña Valenzuela S.A. Vicuña Valenzuela Claro S.A. Center Costanera S.A. Chile Medioambiente Suez Ltda. Chile Solutions Advanced Suez I C M S.A. S.P.A. Técnicas de Revisiones Chilena Servicios Ltda. y Artbase Ingeniería Construcción Contractor or supplier or Contractor Empresa Depuradora de Aguas Servidas Mapocho El Trebal Ltda. Trebal El Servidas Mapocho Aguas de Depuradora Empresa S.A. Chile Medioambiente Suez S.A. Chile Medioambiente Suez Ltda. Trebol El Constructora Copec S.A. de Chile Compañía de Petróleos S.A. Chile Medioambiente Suez I C M S.A. Olbertz Ltda. Constructora Suez Medioambiente Chile S.A. Chile Medioambiente Suez S.A. Sigdo Koppers Construcción y Ingeniería S.A. Chile Medioambiente Suez S.A. Norte Costanera Autopista Ltda. Quilicura Comercial y Inmobiliaria As of December 31, 2017 and 2016, the Company has received has received the Company 2016, and 31, 2017 December As of and Th$26,219,928 of an amount for documents guarantee by originated mainly which are respectively, Th$50,472,285, guarantee companies to with construction contracts construction other are In addition, there contract. the of fulfillment the faithful To send to the bank a copy of the debtor’s annual consolidated annual consolidated the debtor’s of a copy the bank send to To of days than thirty no more of within a period statements financial Commission. Financial Market the to delivery their compliance stating CEO, the Company’s by issued Send a certificate agreement. the loan of with the obligations franchises, trademarks, licenses, permits, rights, all its Maintain and effect. parts in full force relevant concessions or including its assets, protects reasonably that insurance Maintain and office furniture inventory, plants, buildings, its headquarters, usual with the Company’s in accordance vehicles, and equipment industries. nature for practices with its Subsidiaries or transactions that ensure to It is obligated equity of conditions carried out under parties are related other in the market. those prevailing to similar greater than 3 times, measured on the basis of the figures in its in its the figures on the basis of than 3 times, measured greater between ratio as the defined annual balance sheets, consolidated and year the financial for plus depreciation income operating As expenses. financial by divided assets intangible of amortization 18.92 to hedging amounted expense interest 31,2017, December of times. As of December 31, 2017, the water utility subsidiaries comply with all with all subsidiaries comply utility the water 31, 2017, December As of creditor with their agreements in the loan established the requirements 382, the DFL. No. by established as with the provisions as well banks, (D. as its Regulations Services, 1988, as well Sanitation of Law General 2005). Nº1199/2004, published in November S. MOP THIRD PARTIES FROM OBTAINED 4. GUARANTEES 4. 5. 6. 7. S.A. Essal c) domestic from borrowing for obligations maintains The Subsidiary associated or ratios financial no committed which have banks, restrictions. 3. Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements Th$ 819,737 388,096 1,207,833 31-12-2016 31-12-2016 Annual Report 2017 Annual Report Th$ 565,184 200,065 765,249 31-12-2017 31-12-2017 Future minimum non-cancellable future lease lease future non-cancellable minimum Future lessors year, one up to payments, Amount of contingent leases recognized in the recognized leases contingent of Amount income statement MINIMUM FUTURE NON-CANCELABLE MINIMUM FUTURE NON-CANCELABLE LESSORS PAYMENTS, LEASE Totals Significant operating lease agreements of the lessor the of lease agreements operating Significant Company. the to material is not these items Income from Disclosures about operating leases as lessors leases operating about Disclosures as lessor, it acts this type where of has contracts The Company with mostly premises, operational means parts of who mainly from renewal automatic companies, which have telecommunications of notice give to has the power the Company however, years, 5 1 to to lieu time according 90 and 180 days 60, 30, between termination the contract. Th$ 8,166,761 2,829,953 5,336,808 3,489,385 3,489,385 31-12-2016 31-12-2016 Th$ 2,831,275 5,979,441 8,810,716 3,395,853 3,395,853 31-12-2017 31-12-2017 123 Minimum lease payments under under payments Minimum lease leases operating FUTURE MINIMUM NON-CANCELLABLE FUTURE MINIMUM NON-CANCELLABLE LESSORS PAYMENTS, FUTURE LEASE lease non-cancellable Minimum future lessors year, one up to payments, lease non-cancellable Minimum future than and less year one over payments years,lessors five Total future minimum non-cancellable minimum non-cancellable future Total payments lease Total lease and sublease payments payments and sublease lease Total statement in the income recognized Significant operating lease agreements operating Significant For vehicles. of lease to the relate leases operating significant The most services are Lease 96 months. 18 to from range these cases, contracts statements. payment of upon submission and approval paid monthly contracts leasing terminate may The Company termination: Contract the conditions of any of serious breach of in the event in advance and technical rules in the administrative contained and obligations to will be entitled the company when this occurs, specifications, fulfillment and timely complete the faithful, for the guarantee enforce damages. for as compensation the contract, of Note 18. Leases 18. Leases Note as a lessee leases operating about Disclosures digital lines, machinery, of leases presented are this concept Under leasing mainly and operate agencies commercial where some facilities services. transportation of
46,566 7,528,118 492,245,134 484,670,450 31-12-2016 Th$ 31-12-2016
6,719,378 2,223,220 500,593,807 509,536,405 31-12-2017 Th$ 31-12-2017 Sale of goods of Sale Provision of services of Provision Totals Insurance returns Insurance Ordinary revenue Ordinary ORDINARY REVENUE ORDINARY CLASS The detail of the ordinary revenues recorded by the Group companies is companies the Group by recorded revenues the ordinary of The detail as follows: Note 17. Ordinary Revenue Ordinary 17. Note Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Note 15.Provisions And Contingent Liabilities And Contingent 15.Provisions Note A. Provisions is as 2016 and 31, 2017 December as of this account of The breakdown follows: Consolidated Financial Statements Annual Report 2017 Annual Report The RV-2014 mortality tables of the Financial Market the Financial Market of tables mortality The RV-2014 Actuarial assumptions Actuarial Andinas In Aguas service: Aguas S.A., of S.A., Aguas Cordillera Years in will remain workers that Essal S.A., it is assumed y S.A. Manquehue up age (women retirement the legal reach they until these companies In the subsidiary age). of years 65 age and men up to of years 60 to to and it is paid compensation 6 months of is a limit A. there Essal S. die. or retire who people union agreements part of who are in each plan: Workers Participants with and workers above) unions (indicated trade into assimilated or Workers event. any clauses under with indemnity individual contracts are company per indemnity actuarial of the calculation part of who are Andinas Aguas as S. A.: follows: 893; Aguas S. A.: Cordillera 98; Aguas 1. A.: Servicios S. y Gestión and A.: 324 S. A.: 14; Essal S. Manquehue Mortality: used. Commission are to According rates: retirement and early disability turnover, Employee is 6.2%, 2017 used for the turnover experience, statistical the Group’s nor incapacities Neither workers. target 5.9% for it was 2016 for while the infrequent due to been considered have retirements premature these events. of nature 4.8% and used were the rates and 2016, 2017 For rate: Discount and the expected rates, risk-free to corresponding respectively, 4.7%, term. long the for estimate inflation the and 2016 in 2017 estimates, the long-term make To rate: Inflation of Bank Central the by reported rate inflation long-term estimated 3.0%. to used, which amounts was Chile and 5.4% 5.7% are 2017 used for The rates increase: salary of Rate 2016. for 124 Policies on defined benefit plans benefit on defined Policies agreements bargaining the collective part of not who are Workers the rules by governed A. and its subsidiaries are S. Andinas Aguas of which Code, for the Labor of and 161 159,160 in articles established service. of years for is recorded provision no indemnity reason, up to value current at compensation recorded who those workers For at recognized event, any under 2002 (includes compensation year the as the advances is applied, as well calculation the actuarial date), that this compensation. of on account granted as in the same way treated were or part of, are who employees For the of the date at in force agreements bargaining the collective for value calculation the actuarial statements, financial consolidated is applied. payment severance in earnings and losses of recognition policies on the Accounting plans benefit defined accrue to to which is expected obligation, payment The severance Aguas S.A., Cordillera Aguas Andinas S.A., Aguas in retiring workers value, actuarial at S.A., and Essal S.A., is recorded Manquehue method. credit unit of using the projected determined arising from payments on severance earnings and losses Actuarial or increases salary mortality, turnover, of changes in estimates 19 IAS with the revised in accordance recorded are rates discount Shareholders’ affecting income, directly comprehensive in other Income. Accumulated to reclassified is subsequently which Equity, the of force into the entry commenced in 2013 due to This procedure and parameters in estimates 2012, all changes Until 19. IAS revised year. the on income for effect a direct used determined The collective bargaining agreement in force with the Unions of the the of with the Unions in force agreement bargaining The collective on and expires 31, 2016 signed on December A. was Essal S. subsidiary 31, 2019. December The collective bargaining agreements in force for Anam S.A. Anam S.A. for in force agreements bargaining The collective April 2017, 2015 and signed in December were S.A. and EcoRiles of Workers years. is three contracts both of The duration respectively. 159, in articles established the rules by governed these Subsidiaries are provision no indemnity reason which Code, for Labor the of and 161 160 service is recorded. of years for The collective bargaining agreements in force for Aguas Cordillera S. S. Cordillera Aguas for in force agreements bargaining The collective signed on December were A. personnel, S. Manquehue Aguas A., and and Workers’ 1,2 and the No. Unions 23, 2014 for 1, 2014 and December years. four for valid all and are respectively, Union, Supervisors’ The collective bargaining agreement in force with Union Nº 3 Nº 3 with Union in force agreement bargaining The collective signed on Andinas S.A. was Aguas of And technicians Professionals 31, 2018. July until valid 2015 and is 24, September The collective bargaining agreement in force for Aguas Andinas S. A.’s A.’s Andinas S. Aguas for in force agreement bargaining The collective 31, 2014, July signed on 1 and 2 was No. unions’ and workers’ workers’ years. four for valid and is At consolidated level, the Company has 2,107 employees, 93 of whom whom 93 of employees, 2,107 has the Company level, consolidated At covered workers of The number and executives. managers senior are and individual employment agreements bargaining collective by and 23 is 1,724 clauses, special compensation with contracts, Code. the Labor by governed are 360 workers Meanwhile, respectively. Note 19. Employee Benefits Employee 19. Note Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements
Year 2018 2018 Annual Report 2017 Annual Report 29,211 919,621 890,410 flow Expected payment payment Expected 4 17 13 Number of of Number employees Company Essal S.A. Totals Aguas Andinas Aguas S.A. Expected payment flows payment Expected in A. states Andinas S. Aguas of agreement bargaining The collective to in order resign voluntarily who workers clause that its seventeenth they the date from 120 days of a term will have age, old due to retire resign. age to retirement the legal reach Aguas with agreements bargaining collective A.’s S. Cordillera Aguas due to resign voluntarily who workers that A. indicate S. Manquehue age will be paid compensation. retirement legal their that a program offered period the Company During the 2015-2017 close who are employees our of retirement voluntary the encourages age. retirement the legal reaching to plans, the benefit defined with the aforementioned In accordance follows: as are year the current for cash flows
0 Th$ Th$ -58,684 667,802 5,419,742 1,056,671 4,166,857 1,983,269 16,032,827 15,621,082 17,285,712 -1,984,428 21,452,569 31-12-2016 31-12-2016 21,452,569 31-12-2016 31-12-2016
Th$ Th$ 711,341 173.024 206,637 4,614,741 5,531,516 1,294,819 17,285,712 -1,340,799 15,328,801 -2,085,158 16,245,576 31-12-2017 31-12-2017 20,860,317 31-12-2017 31-12-2017 20,860,317 125 Cost of services of Cost PROVISIONS FOR EMPLOYEE BENEFITS EMPLOYEE FOR PROVISIONS provision Changes in actuarial Beginning balance Interest cost Interest Actuarial (earnings) or losses or (earnings) Actuarial Benefits paid Benefits Compensation Special Seniority benefits termination for Provision Sub-totals Totals Profit sharing and bonuses Profit Provisions for employee benefits, non-current benefits, employee for Provisions Totals PROVISIONS FOR EMPLOYEE BENEFITS EMPLOYEE FOR PROVISIONS current benefits, employee for Provisions In the statement of financial position, these balances are shown under under shown financial position, these balances are of In the statement headings: the following Changes in actuarial provisions as of December 31, 2017 and 2016, and 2016, 31, 2017 December as of provisions Changes in actuarial as follows: are which include changes in provisions, The compensation provision is presented by deducting the advances the advances deducting by is presented provision The compensation employees. to granted Workers of Aguas Andinas S. A. and its Subsidiaries, who are not part of part of not A. and its Subsidiaries, who are Andinas S. Aguas of Workers individual their by governed are agreements, bargaining collective their subsidiaries, utility the non-water as for Insofar contracts. employment del Maipo Aguas A. and Anam S. A., S. A., EcoRiles Servicios S. y Gestión individual code applies, unless in the labor is indicated A. what S. different. something indicate contracts In the event that the employee retires from the Company pursuant pursuant the Company from retires the employee that In the event 6 of number or a) 1 letter 5, number 2, 4 or number 159, article to will be paid amount Code, the accumulated the Labor of 160 article A. and Andinas S. Aguas 31, 2002 in July up to as compensation, the by quarterly A., adjusted S. Cordillera Aguas 31, 2002 in December is variation this that provided Price Index, in the Consumer variation positive. In the event of the death of the worker, his compensation shall be paid shall be paid his compensation worker, the of the death of In the event the 60 of with article in accordance members family his immediate to Code. Labor In addition to the benefits indicated in note 2.2, letter O, the following following O, the letter 2.2, note in indicated the benefits In addition to indicated: are Defined benefit plans overview plans benefit Defined Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements -44 -279 -800 -1,710 -2,510 -4,098 -13,647 -18,068 -20,578 31-12-2016 Th$ 31-12-2016 Annual Report 2017 Annual Report 0 0 271 Th$ -580 -309 7,216 6,907 -9,651 16,867 31-12-2017 31-12-2017
EUR EUR EUR USD USD USD Currency Earnings (losses) on exchange r on exchange Earnings (losses) differences ate Commercial accounts accounts Commercial accounts and other payable payable accounts Commercial accounts and other payable payable financial liabilities Other Commercial debtors and debtors Commercial receivable accounts other Total variation by liabilities by variation Total Other financial liabilities Other ACCOUNT and debtors Commercial receivable accounts other assets by variation Total Note 20. Exchange Rate Rate Exchange 20. Note Effect Difference is as follows: differences exchange of The detail Th$ -2,054,810 -4,798,825 -14,452,018 -32,753,190 31-12-2016 31-12-2016 -54,058,843 Th$ -2,149,199 -3,478,845 -34,774,133 31-12-2017 31-12-2017 -15,528,033 -55,930,210 126 Totals Other staff costs staff Other PERSONNEL EXPENSES PERSONNEL and salaries Wages Defined benefits Defined Termination compensation Termination Disclosure of benefits upon termination of the contractual the contractual of termination upon benefits of Disclosure relationship the Labor by is governed employment of termination for Compensation collective those special clauses in the respective for Code, except individual contracts. or agreements bargaining sharing and bonuses Profit for its employees to obligation the Company’s to This corresponds the of March and February to be paid in certificates participation stipulated employees, to payable The accrued share year. following on the during February is carried forward in force, in the contracts year. business preceding the immediately for the situation basis of and Th$4,614,741 are the amounts and 2016, 31, 2017 December As of are on this payment advances In addition, respectively. Th$4,166,857, each of and December September June, March, of made in the months year. calendar each by generated will depend on the profits Its annual amount in the Group. company expenses Personnel as follows: are and 2016 31, 2017 December as of expenses Personnel 75 Th$ 2,690 16,689 21,980 655,111 154,723 196,157 626,552 -512,321 Interest Interest cost Th$ cost Minus 0,5% 0,5% Minus 844 Th$ 32,591 63,966 221,521 1,848,814 2,167,736 Th$ Services cost Services cost 551,113 -576,051 -603,067 Plus 0,5% Plus 0,5% 1 14 98 324 893 1,331 Number of of Number employees 5.7% 6.2% 4.8% Base Rate of salary salary of Rate increases Turnover rate Turnover CONCEPT Discount rate Discount Aguas Andinas Aguas S.A. S.A. Cordillera Aguas S.A. Manquehue Aguas COMPANY Essal S.A. Servicios S.A. y Gestión Totals Based on the actuarial calculation as of December 31, 2017, the the 31, 2017, December as of calculation Based on the actuarial the determining been sensitized, have main assumptions impacts: following Sensitivity of assumptions of Sensitivity The summary by company code is as follows: code is as company by The summary For the calculation of projected liabilities for severance payments payments severance liabilities for projected of the calculation For with IAS 2018, in accordance December as of value, actuarial at 31, 2017 December as of in force assumptions the actuarial 19, in increased bonus has been the legal in this note, reported already of January in established increase with the minimum wage accordance this year. Projected liabilities as of December 31, 2018 December as of liabilities Projected Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements 7.64 5,669,924 31-12-2016 Annual Report 2017 Annual Report 7.13 2,201,924 31-12-2017 % Th$ CAPITALIZED INTEREST COSTS, COSTS, INTEREST CAPITALIZED AND EQUIPMENT PLANT PROPERTY, for rate cost interest Capitalized and plant property, interest, capitalized equipment costs, interest capitalized of Amount equipment and plant property, DISCLOSURES ABOUT CAPITALIZED INTEREST COSTS INTEREST CAPITALIZED ABOUT DISCLOSURES Note 23. Capitalized Financing Financing 23. Capitalized Note Costs and 31, 2017 December of as costs financing capitalized of The detail is as follows: 2016 Th$ -429 5,334 412,326 182,409 104,888 699,623 -182,778 31-12-2016 31-12-2016 -20,683,219 -20,161,469 -20,861,092 Th$ -209 6,232 90,479 467,148 428,882 -179,372 986,509 31-12-2017 31-12-2017 -12,760,363 -12,933,712 -11,947,203 127 Earnings (losses) by readjustment units readjustment by Earnings (losses) Total variation by liabilities by variation Total Other non-financial liabilities non-financial Other Accounts payable to related parties related to payable Accounts Trade accounts payable and other accounts accounts and other payable accounts Trade payable Other financial liabilities Other Total variation by asset by variation Total Accounts receivable from related parties related from receivable Accounts tax assets Current accounts and other debtors Commercial receivable ACCOUNT Note 22. Income By Readjustment Readjustment By 22. Income Note Units the financial for readjustment units of income by of The breakdown is as follows: 2016 and 31, 2017 December ended on years Th$ -5,766,515 -6,549,976 -17,313,594 -6,907,689 -11,166,078 -6,243,958 -5,699,899 -11,636,031 -6,300,005 31-12-2016 31-12-2016 -24,355,201 -12,453,660 -114,392,606 Th$ -7,101,831 -6,313,318 -6,757,282 -7,232,339 -7,360,079 -6,683,156 -15,172,668 31-12-2017 31-12-2017 -11,335,985 -14,933,319 -12,764,364 -25,635,865 -121,290,206 OTHER EXPENSES BY NATURE EXPENSES BY OTHER plants treatment of Operation Services and repairs maintenance Network Commercial Services Commercial parties third by requested work for Costs and equipment facilities of Maintenance Leases expenses General and sludge waste of Removal and rights insurance patents, Contributions, Others Totals Information on other expenses by nature is as follows: nature by expenses on other Information Note 21. Other Expenses By Nature Expenses By 21. Other Note Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements 0 Th$ Th$ -93,967 290,150 683,552 -580,783 5,323,743 5,229,776 -1,264,335 31-12-2016 31-12-2016 31-12-2016 -48,974,228 106,215,385 -43,454,302 -48,684,078 105,634,602 Annual Report 2017 Annual Report Th$ Th$ 88,133 613,218 660,562 -135,477 -297,129 -131,156 1,212,200 -1,343,356 31-12-2017 31-12-2017 31-12-2017 -46,695,067 -46,378,978 -46,992,196 105,634,602 105,503,446 Income tax expense tax expense Income Income (expense) from other taxes other from (expense) Income Flat tax expense (rejected expenses) (rejected tax expense Flat Deferred income (expense) from taxes taxes from income (expense) Deferred of and reversal creation the to relating differences temporary Changes in liabilities due to deferred tax, deferred Changes in liabilities due to total Changes in liabilities due to deferred tax deferred Changes in liabilities due to loss tax for Profit Increases (decreases) in acquisitions through in acquisitions through (decreases) Increases business combinations income tax expense Current MOVEMENTS IN LIABILITIES DUE MOVEMENTS TO DEFERRED TAX tax liabilities, initial balance Deferred in liabilities due to (decreases) Increases tax deferred CURRENT INCOME (EXPENSE) FROM TAXES AND DEFERRED INCOME tax expense Current tax expense year prior to Adjustment INCOME TAX EXPENSES INCOME TAX MOVEMENTS OF DEFERRED TAX LIABILITIES TAX DEFERRED OF MOVEMENTS Th$ Th$ 15,306 387,431 649,538 -179,994 4,727,115 1,502,835 3,404,274 45,611,780 13,305,193 82,720,173 22,995,484 22,669,870 87,447,288 31-12-2016 31-12-2016 31-12-2016 31-12-2016 -18,187,314 105,634,602 0 Th$ Th$ 387,431 823,221 -2,005 625,622 167,390 11,961,837 24,057,186 45,611,780 22,661,991 -456,227 31-12-2017 31-12-2017 -17,888,768 87,447,288 87,614,678 105,503,446 31-12-2017 31-12-2017 128 Net position of deferred taxes deferred position of Net DEFERRED TAX LIABILITIES DEFERRED TAX assets fixed of Depreciation Amortization Investment expenditure of related companies related of expenditure Investment Land revaluations Revaluations of water rights water of Revaluations Fair value of the assets for Essal S.A. purchase for the assets of value Fair Others Deferred tax liabilities Deferred Changes in assets due to deferred tax, total deferred due to Changes in assets Changes in assets due to deferred tax deferred due to Changes in assets Increases (decreases) in provisions for for in provisions (decreases) Increases receivable accounts doubtful Increases (decreases) due to monetary monetary due to (decreases) Increases depreciation and asset variation correction MOVEMENTS IN ASSETS DUE TO TO DUE ASSETS IN MOVEMENTS DEFERRED TAX initial balance tax assets, Deferred due to in assets (decreases) Increases tax deferred DISCLOSURES ABOUT DEFERRED TAX LIABILITIES TAX DEFERRED ABOUT DISCLOSURES On 29 September 2014, Law No. 20,780 was published, which published, was 20,780 No. 2014, Law On 29 September category the first of change in the tax rate a permanent establishes the revalue to necessary 12, it was with IAS in accordance tax, therefore of year the to according rates the new them to adjusting taxes, deferred in 21% in 2014, 22.5% in 2015, 24% 20% to them from increasing reversal, and 27% in 2018 and forward. 25.5% in 2017 2016, MOVEMENTS OF DEFERRED TAX ASSETS TAX DEFERRED OF MOVEMENTS Th$ Th$ 43,332 371,870 706,416 134,392 588,013 463,085 1,969,571 8,317,255 1,352,025 3,888,756 20,231,924 69,612,573 87,447,288 -18,187,314 31-12-2016 31-12-2016 -38,419,238 31-12-2016 31-12-2016 107 Th$ Th$ 477,561 703,031 102,682 378,223 664,148 1,969,571 1,169,860 8,942,877 3,596,050 20,200,593 69,610,568 87,614,678 31-12-2017 31-12-2017 31-12-2017 31-12-2017 -38,089,361 -17,888,768 Others tax assets Deferred Water rights (amortization) rights Water receivable accounts doubtful for Provision DEFERRED TAX ASSETS DEFERRED TAX Holiday provision Holiday Litigation Compensation for seniority for Compensation provisions Other and asset correction in monetary Variation depreciation income Deferred Tranque La Dehesa Transaction Transaction La Dehesa Tranque Amortization Net position of deferred taxes deferred position of Net Deferred tax assets Deferred FINANCIAL POSITION STATEMENTS FINANCIAL Deferred tax liabilities Deferred The net position presented originates from a variety of temporary and and temporary of variety a from originates position presented The net can be presented level the consolidated at that differences permanent headings: following the under Taxes and tax assets the deferred position of the net 12, in IAS As established in and presented individual company each by liabilities, determined adding each position, by statement financial position the consolidated is as follows. Note 24. Income Tax And Deferred And Deferred Tax Income 24. Note Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones DISCLOSURES ABOUT DEFERRED TAX ASSETS TAX DEFERRED ABOUT DISCLOSURES Consolidated Financial Statements Annual Report 2017 Annual Report Operations related to water utility (water) services. (water) utility water to related Operations operations. (non-water) utility Non-water Note 26. Business Segments 26. Business Note with in accordance information segment discloses EThe Group the reporting forth sets which Segments”, 8, “Operating IFRS No. products for disclosures and related segments operating for standards of as components defined are segments and services. Operating is that financial information is separate which there for a company resources decisions, allocate make to management used by regularly performance. and evaluate its operations of the performance manages and measures The Group as are segments operating reported Internally business segment. by follows: • • and services which provide products the types of of Description segment each reporting from revenue ordinary the delivery allow services that utility water only segment, Water In the water potable of distribution production, and services for products of involved. are wastewater of and treatment the collection with along Aguas A., Andinas S. Aguas includes the subsidiaries This segment A. through A. and Essal S. S. Manquehue Aguas A., S. Cordillera Ltda. Iberaguas environmental to includes services related segment The Non-Water engineering comprehensive treatment, waste industrial analysis, and services sanitary to related products of services, such as the sale Anam S. A., S. EcoRiles The subsidiaries included are projects. energy A. S. del Maipo Aguas A. and Servicios S. y A., Gestión 74,289 74,289,195 74,289,195 31-12-2016 1,000,000,000 68,719 68,718,709 68,718,709 31-12-2017 1,000,000,000
$ 129 Th$ Th$ Earnings attributable to holders holders to Earnings attributable the of instruments equity of controller common for available Results basic shareholders, of number average Weighted basic shares, share Earnings per EARNINGS PER SHARE Disclosure of diluted earnings (loss) per share per earnings (loss) diluted of Disclosure effect dilutive type of any carried out has not The Company than basic other share earnings per diluted involving transaction share. earnings per Note 25. Earnings Per Share Share Per 25. Earnings Note (loss) the profit of as the ratio calculated are share Basic earnings per Company the Parent of instruments equity of holders to attributable during outstanding shares ordinary of number average the weighted to year. the said financial 0 Th$ 0.05% 0.00% -0.17% -1.69% -0.15% 24.00% -93,967 22.04% 290,150 322,923 3,339,958 3,859,064 31-12-2016 31-12-2016 31-12-2016 -47,313,366 -43,454,302 Th$ 0.16% 0.07% 0.20% 88,133 -1.29% -0.05% 25.50% 24.59% -135,477 -297,129 -377,207 2,442,565 1,720,885 31-12-2017 31-12-2017 31-12-2017 -46,378,978 -48,099,863 Effective tax rate Effective Other permanent differences permanent Other Tax expense using effective rate rate using effective expense Tax Permanent difference from prior years' years' prior from difference Permanent income taxes Adjustments to tax expense using legal rate using legal tax expense to Adjustments Other permanent differences permanent Other Permanent difference for rejected rejected for difference Permanent expenditure Permanent difference from prior years' years' prior from difference Permanent income taxes Permanent difference for tax loss benefit tax loss for difference Permanent Permanent difference for rejected rejected for difference Permanent expenditure Legal tax rate Legal monetary for difference Permanent and liabilities tax assets for correction Tax expenses using the legal rate using the legal expenses Tax monetary for difference Permanent and liabilities tax assets for correction benefit tax loss for difference Permanent Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones RECONCILIATION OF LEGAL TAX RATE WITH EFFECTIVE TAX RATE TAX WITH EFFECTIVE RATE TAX LEGAL OF RECONCILIATION NUMERICAL RECONCILIATION BETWEEN INCOME (EXPENSE) DUE BETWEEN INCOME (EXPENSE) DUE RECONCILIATION NUMERICAL EARNINGS THE BOOK MULTIPLYING OF THE RESULT AND TAXES TO (S) RATE TAX THE APPLICABLE BY Consolidated Financial Statements Annual Report 2017 Annual Report Significant items of segment revenues and expenses and revenues segment of items Significant Segment Non-Water and Water those mainly are expenses income and ordinary of items Significant significant also are hand, there On the other activity. segment to related miscellaneous and other personnel depreciation, regarding amounts relevant. services are within which outsourced expenses, Income services regulated the from mainly derive revenues The Company’s drinking water, of distribution and production to: corresponding regulated and other wastewater and disposal of treatment collection, and service interruptions to related include revenues services (which and discharge waste liquid industrial of monitoring charges, reactivation base charges). items revenue significant of Detail segment Water to the related those mainly are revenue ordinary of items Significant the from revenues i.e. business activity, and wastewater water potable sewerage charge, fixed charge, variable consumption, over water, of sale It is also treatment. pipeline use and wastewater service, and collector assets. fixed of the sale from revenue identify to possible Tariffs the Company’s the income of determines that factor important The most regulated its for set rates and its financial position is the operations Andinas and its water Aguas companies, As regulated and services. sales in set are tariffs the SISS and their by controlled subsidiaries are utility L. No. F. Services D. the Sanitation of Tariffs of with the Law accordance 1988. of 70 and, during this period, are years five every reviewed are levels Tariff if polynomial, an indexation to linked additional readjustments to subject higher, or is 3.0% adjustment since the previous variation the cumulative indexes. inflation various based on calculations to according 0 0 21,064 122,410 223,193 727,040 727,040 -127,580 -719,000 -200,236 13,158,165 8,905,636 4,074,938 -6,711,269 -2,131,435 19,164,345 -6,332,311 15,034,226 28,192,391 28,192,391 23,133,234 -10,503,558 130 Non Water Th$ Water Non Non Water Th$ Water Non 31-12-2016 31-12-2016 782,634 4,261,793 6,366,834 Water Th$ Water 52,725,245 16,728,956 Water Th$ Water -23,152,734 469,116,410 -27,106,024 -66,318,416 -111,898,151 172,864,658 -20,198,764 -46,968,101 154,110,419 614,992,835 208,250,144 -43,242,225 872,883,250 149,848,626 1,575,986,816 1,748,851,474 1,748,851,474 0 0 21,474 151,337 -86,145 224,228 329,304 -699,021 4,314,127 14,731,411 4,127,986 4,127,986 -1,284,170 20,251,891 -7,230,674 -6,657,188 14,472,469 20,359,496 25,239,999 34,983,302 34,983,302 -10,043,948 Non Water Th$ Water Non Non Water Th$ Water Non 31-12-2017 31-12-2017 989,298 3,861,973 5,928,429 2,306,663 Water Th$ Water 50,668,701 Water Th$ Water -31,125,774 142,790,325 622,271,278 -11,958,387 866,317,420 -48,419,753 -73,722,846 -25,086,612 -45,056,455 484,300,578 230,408,065 135,492,295 139,354,268 1,626,875,139 -118,800,873 1,769,665,464 1,769,665,464 Current assets Current assets Non-current TOTALS ON GENERAL INFORMATION ON ASSETS, ASSETS, ON INFORMATION ON GENERAL TOTALS LIABILITIES AND EQUITY Total assets assets Total liabilities Current Non-current liabilities Non-current and liabilities equity Total Equity attributable to owners of the controller of owners to attributable Equity Non-controlling interests interests Non-controlling Income from ordinary activities between segments between activities ordinary Income from Revenue from ordinary activities from external customers external from activities ordinary from Revenue TOTALS ON GENERAL INFORMATION ON INCOME INFORMATION GENERAL ON TOTALS Raw materials and consumables used and consumables materials Raw Employee benefit expenses benefit Employee differences rate and exchange readjustment for Result earnings Segment Operating expenses Operating and amortization Depreciation Income tax expense company controlling to attributable earnings Segment owners non-controlling to attributable earnings (losses) Segment interests Other earnings and expenses earnings and expenses Other Financial income Financial costs GENERAL INFORMATION ON INCOME, ASSETS, LIABILITIES AND EQUITY LIABILITIES ASSETS, ON INCOME, INFORMATION GENERAL Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements
Th$ Th$ 687,807 -4,261,793 -5,224,729 -5,224,729 74,289,195 -76,286,471 31-12-2016 31-12-2016 154,837,459 31-12-2016 31-12-2016 -44,474,162 634,157,180 272,643,238 589,683,018 1,777,043,865 1,090,161,440 1,085,624,518 2,044,462,374 Annual Report 2017 Annual Report
Th$ Th$ 975,754 -3,861,973 -7,768,632 68,718,709 -7,768,630 31-12-2017 31-12-2017 -70,901,572 143,482,254 31-12-2017 31-12-2017 -49,142,624 642,630,775 593,488,151 1,111,349,291 272,490,849 1,104,556,413 1,804,648,766 2,069,370,985 Consolidation of earnings (losses) of Consolidation Consolidation of total earnings (losses) of the of earnings (losses) total of Consolidation segments Intersegment of Elimination of Consolidation earnings (Losses) EARNINGS RECONCILIATION EARNINGS RECONCILIATION headquarters corporate of Elimination with segments accounts Elimination of corporate headquarters headquarters corporate of Elimination with segments accounts the of the owners to attributable Equity controller Total liabilities Total Reconciliation of equity of Reconciliation Consolidation of total equity of the of equity total of Consolidation segments Reconciliation of liabilities of Reconciliation the liabilities if total of Consolidation segments with accounts headquarters Corporate segments accounts intersegment of Elimination Total assets Total Reconciliation of assets assets of Reconciliation accounts intersegment of Elimination SEGMENT ASSETS, ASSETS, LIABILITIES AND SEGMENT RECONCILIATIONS EQUITY assets total segment of Consolidation with accounts headquarters Corporate segments Th$ -4,510 -4,857,572 497,107,216 31-12-2016 31-12-2016 492,245,134 Th$ -4,173 -5,303,424 31-12-2017 31-12-2017 514,844,002 509,536,405 131 Revenue from ordinary activities of the of activities ordinary from Revenue segments activities ordinary from Revenue Elimination of ordinary activities between between activities ordinary of Elimination segments RECONCILIATION OF REVENUE FROM FROM REVENUE OF RECONCILIATION ACTIVITIES ORDINARY headquarters corporate of Elimination with segments accounts Detail of the explanation of measurements of income, assets, income, assets, of measurements of the explanation of Detail each segment of liabilities and equity the to corresponds the segments to applicable The measurement the segment. to related directly are that those subsidiaries of grouping economic those of the recording to correspond criteria The accounting they arise in the same sense that and obligations in which rights events parties. Specifically, with third relationships economic arise between and in an asset balances, committed will generate these records in each the transaction the spirit of to according account liability in which it participates. the segment to according company related related to payable or receivable accounts called These accounts, in statements financial when consolidating be netted companies, must 27. in IAS explained rules with the consolidation accordance the income measurement, of nature in the no differences are There policies that no accounting are there the standard, to since according similar. or criteria allocation cost different express assets of the measurement of nature in the no differences are There reflect policies that no accounting are and liabilities since there criteria. allocation different Non-water segment Non-water to compensation, related those primarily are expense items Significant and income tax expense. sale for materials of cost Water segment Water wages, to related those mainly are expenses items Significant Plant, Treatment Wastewater the of Operation energy, electrical expense, interest assets, and movable estate real of depreciation income tax expense. Detail of significant expenses items significant of Detail Non-water segment Non-water to the related those mainly are revenues ordinary of items Significant main each subsidiary’s to related intimately and are activity segment’s parties, revenues third to materials of the sale involves which activity, from revenues plant, treatment waste industrial a liquid operating from of and sales and wastewater, drinking water of services and analysis biogas. As for the subsidiary Essal S. A., the rates in force for the period the period for in force the rates A., Essal S. the subsidiary As for 2016, 25, August 143 dated No. Decree by approved were 2016-2021 21, 2017. January on published in the Official Gazette During 2015, the tariff negotiation processes for 2015-2020 were were 2015-2020 for processes negotiation During 2015, the tariff period five-year during the tariffs set that concluded, the decrees Andinas Aguas S. A., Aguas mentioned S. A. Cordillera for and Aguas 139-2015; 83-2015; 152-2015; numbers to A., correspond S. Manquehue respectively. Specifically, the readjustments are applied according to a formula formula to a according applied are readjustments the Specifically, of Index Price Wholesale the Price Index, includes the Consumer that National of Price Index Wholesale and the Goods Industrial Imported of Institute Statistics the National by Goods, all measured Industrial reflect to readjustment to subject are In addition, the tariffs Chile. the SISS. by authorized previously additional services Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Consolidated Financial Statements Annual Report 2017 Annual Report 132 Potable water production and distribution. production water Potable and treatment. collection Wastewater operations plant treatment waste in industrial service Outsourcing S.A.). EcoRiles (subsidiary load organic excessive of and treatment and solids air on water, analysis chemical and biological Physical, Anam S.A.). (subsidiary such as products of engineering services and sale Comprehensive y Gestión (subsidiary products related other taps and valves, pipes, Servicios S.A.). S.A.). del Maipo Aguas (subsidiary projects Energy SEGMENT PRODUCT TYPES, WATER – NON-WATER WATER TYPES, PRODUCT SEGMENT segment Water are: segment water the for and services products The types of • • Aguas S.A., Cordillera Aguas Andinas S.A., Aguas by formed Segment Ltda. S.A., Essal S.A. and Iberaguas Manquehue segment Non-water are: segment the non-water and services for products The types of • • • • Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones - Papeles Cordillera S.A. Cordillera - Papeles Ltda. Generales - EME Serv. Pacífico Nueva - Inmobiliaria Constructora - Cartulinas CMPC S.A. S.A. - Watt’s S.A. - Soprole Ltda. CCU Chile - Cervecera Ltda Gómez y Pérez - Constructora S.A. - Metrogas La Unión Lechera y Agrícola - Cooperativa CLIENTS SEGMENT MAIN NON-WATER - I. Municipalidad de Puente Alto de Puente - I. Municipalidad de Santiago - I. Municipalidad de La Florida - I. Municipalidad S.A Las Condes Alto Comunitario Centro Administración - 1 Santiago Preventiva Detención de - Centro S.A. Unidas Chilenas - Embotelladoras de Peñalolén - I. Municipalidad Ltda. CCU Chile - Cervecera de Chile - Universidad Públicas de Obras - Ministério MAIN WATER SEGMENT CLIENTS SEGMENT WATER MAIN Main clients’ information clients’ Main Consolidated Financial Statements Annual Report 2017 Annual Report Indication whether the disimbursement is part of the cost of an an of the cost is part of the disimbursement whether Indication the for expense, disimbursements as an reflected was or asset year financial of cost the construction of part are projects All the above-mentioned works. the respective will be disbursements on which future date estimated Certain or disbursements year made, financial 2018. be made during to expected are that disbursements Projected disbursements by affected are companies that Subsidiaries are laws compliance with ordinances, i.e. the environment, to related may that other and any and facilities processes industrial regarding environment. the of the protection affect indirectly or directly In January 2018 Aguas Andinas concluded an early collective bargaining bargaining collective Andinas concluded an early Aguas 2018 January In Nº1, 2 and professions workers employees, with the unions of process agreement collective a new of implies the signing The agreement and 3. The July. in which expires in force currently the instrument replaces that years. three for valid 2018 and is 29, January signed on was agreement statements, financial these consolidated issuance of of the date At any of aware not and Subsidiaries are Management the Company’s December of as the financial situation affecting events subsequent 31, 2017. Note 28. Events Occurring After After Occurring 28. Events Note Position The Financial Of The Date Statement 0 0 Th$ 91,427 91,427 36,579 318,325 897,144 542,240 168,059 430,725 31,786,690 32,385,474 31-12-2016 Th$ 31-12-2016 Th$ 31-12-2016 31-12-2016 Th$ 31-12-2016 60,863 149,612 60,863 285,144 104,899 539,655 6.121.864 6.121.864 31-12-2017 Th$ 31-12-2017 Th$ 31-12-2017 31-12-2017 Th$ 31-12-2017 133 Totals Totals Renovation of treatment and disposal treatment of Renovation equipment Totals Totals Totals Totals Essal S.A. COMPANY Andinas Aguas S.A. Total Aguas Manquehue S.A. Manquehue Aguas PROJECT NAME PROJECT plant Biogás purification NAME PROJECT disposal infrastructure of Improvement system the EDAR of Improvement PROJECT NAME PROJECT equipment of and renovation Improvement facilities and purification ESSAL S.A. ESSAL PROJECTED INVESTMENT IN THE ENVIRONMENT FOR 2018: FOR THE ENVIRONMENT IN INVESTMENT PROJECTED AGUAS MANQUEHUE S.A. AGUAS S.A. MAIPO DEL AGUAS 8,542 2,886 22,742 53,815 29,943 34,996 24,040 294,296 1,150,811 3,397,612 40,514,557 45,534,240 31-12-2016 Th$ 31-12-2016 0 0 2,145 2,536 57,130 17,403 1,162,682 1,709,635 3,567,160 9,381,667 1,358,967 17,259,325 31-12-2017 Th$ 31-12-2017 Expansion and Improvements WWTP WWTP Expansion and Improvements Paine WWTP Expansion and Improvements Pomaire WWTP Expansion and Improvements de Maipo José San WWTP Expansion and Improvements Talagante WWTP Expansion and Improvements de Paine Valdivia of and renovation Improvement facilities and purification equipment La Farfana Plant La Farfana Plant Trebal - Mapocho sludge management for platform External and disposal El Rutal Totals Expansion and Improvements WWTP WWTP Expansion and Improvements Localities Other PROJECT NAME PROJECT WWTP Expansion and Improvements Curacaví AGUAS ANDINAS ANDINAS S.A. AGUAS Following is a detail of the investments related to the environment: to related the investments of detail is a Following Disclosures about disbursements related to the environment to related disbursements about Disclosures the Financial 2008 of 30, October 1901 of No. Circular to According to related disbursements regarding Commission, information Market as follows. is disclosed the environment Note 27. Environment 27. Note Inversiones Aguas Metropolitanas S.A. and Subsidiaries Metropolitanas Aguas Inversiones Statements Financial Consolidated to Notes Inversiones Aguas Aguas Metropolitanas Inversiones Earnings 1. SUMMARY OF THE 2017 FINANCIAL YEAR • The Company’s revenues amounted to CLP Th$509,536,405, which CLP Th$1,318,979 and lower costs in chemical inputs amounting to CLP Release was CLP Th$17,291,271 (3.5%) higher than in 2016. This increase was Th$577,806. mainly explained by higher volumes supplied together with the tariff • The EBITDA for the period reached CLP Th$297,391,085, an increase of indexations registered during 2016 and 2017. 2.4% compared to the same period of the previous year. Financial year ended onDecember 31, 2017 • Non-regulated subsidiaries increased their revenues by CLP • The financial result presented a loss of CLP Th$36,971,097, resulting Th$2,288,136 due to higher sales of EcoRiles and Análisis Ambientales, in a lower loss of CLP Th$3,818,110 when compared to the previous partially offset by lower sales of materials in Gestión y Servicios. year, mainly as a result of a lower revaluation of the readjustable debt in Additionally, during the second half of the year Aguas del Maipo Unidades de Fomento. recorded sales of biogas from the Methanization Plant located in the La • Other earnings of CLP Th$2,608,255 were obtained, lower by CLP Farfana plant. Th$11,985,832 than in 2016, mainly due to the subsidiary Aguas • Costs amounted to CLP Th$212,145,320, an increase of 5.1%, mainly Cordillera selling in 2016 a large area of land in the district of Vitacura. due to higher activity in network maintenance amounting to CLP • Income tax expense at the closing of the 2017 financial year was CLP Th$3,767,241, higher electricity costs amounting to CLP Th$2,240,197, Th$46,378,978, which is CLP Th$2,924,676 higher than the previous higher personnel costs amounting to CLP Th$1,926.398, an increase year. This variation was mainly explained by the change in the tax rate by CLP Th$1,706,306 in the allowance for doubtful accounts, higher from 24% to 25.5%, due to the Tax Reform. operating cost of sewage plants amounting to CLP Th$1,280,664 Earnings Release and higher costs amounting to CLP Th$1,018,933 due to increases in • Net income as of December 31, 2017 amounted to CLP Th$68,718,709, requests for modification of sanitary infrastructure. This is partially which is CLP Th$5,570,486 (7.5%) lower than that obtained at the offset by lower activity in work requested by customers amounting to closing of the 2016 financial.
2. RESULTS
2.1 ACCUMULATED RESULTS
INCOME STATEMENT (CLP$ Thousands) Dec. 17 Dec. 16 % Var. 2017 - 2016
Ordinary Income 509,536,405 492,245,134 3,5% 17,291,271
Operating Costs and Expenses (212,145,320) (201,894,208) 5,1% (10,251,112)
EBITDA 297,391,085 290,350,926 2,4% 7,040,159
Depreciation and Amortization (74,401,330) (67,016,783) 11,0% (7,384,547)
Operating Income 222,989,755 223,334,143 (0,2%) (344,388)
Other Earnings 2,608,255 14,594,087 >200% (11,985,832)
Financial Income* (36,971,097) (40,789,207) (9,4%) 3,818,110
Tax Expense (46,378,978) (43,454,302) 6,7% (2,924,676)
Net Income 68,718,709 74,289,195 (7,5%) (5,570,486)
* Includes interest income, finance costs, exchange rate differences and results due to readjustment units.
Inversiones Aguas Metropolitanas 134 Annual Report 2017 Earnings Release 372 5,267 4,756 5,847 45,376 45,467 % 2.1% 7.3% 2.5% 3.5% 13.0% 13.0% Difference Difference Annual Report 2017 Annual Report Variation CLP Th$ CLP 1,246,875 6,413,295 6,413,295 4,940,155 17,291,271 17,291,271 4,690,946 2.1% 0.3% 2.0% 1.10% 1.03% 0.87% % Var. % Var. 3.5% 47.8% 10.0% Share 38.7% 100.0% 100.0% Dec. 16 123,379 479,031 569,199 549,505 Dec. 16 Dec. 16 2,160,473 2,213,869 17,161,349 49,224,980 Sales Th$ Sales CLP 190,399,865 492,245,134 492,245,134 235,458,940 3.6% 47.2% 10.9% 10.9% Share 38.3% 100.0% 100.0% 123,751 554,261 575,046 484,298 Dec. 17 Dec. 17 2,259,245 2,205,940 Dec. 17 18,408,224 55,638,275 195,090,811 Sales Th$ Sales CLP 240,399,095 509,536,405 509,536,405 135 (Thousands of m3) (Thousands of Sewage Treatment and Disposal Treatment Sewage Interconnection* SALES VOLUME VOLUME SALES Potable Water Water Potable Sewage Collection Sewage CLIENTS Potable Water Water Potable Sewage Collection Sewage Other Regulated Income Regulated Other Income Regulated Non Potable Water Potable Sewage Total (CLP$ Thousands) (CLP$ INCOME STATEMENT * Interconnections include the Treatment and Disposal of Sewage from other water utility companies. water other from Sewage and Disposal of Treatment include the * Interconnections 2.2 ANALYSIS INCOME Inversiones Aguas Aguas Metropolitanas Inversiones Earnings Release Annual Report 2017 Annual Report d) Other Expenses d) Other Th$121,290,206, CLP to amounted these expenses 31, 2017, December As of mainly in 2016, obtained than that higher Th$6,897,600 which is CLP Th$3,767.241, CLP of activity maintenance network higher by explained higher Th$1,706,306, CLP for accounts uncollectible for allowance higher mainly associated Th$1,280,664 CLP for plants sewage of cost operating utility water of transfers for costs and higher the UF of variation with the activity lower by offset This is partially Th$1,018,933. CLP for infrastructure Th$1,318,979. CLP for clients by requested in work ANALYSIS INCOME AND OTHER INCOME 2.4. FINANCIAL Earnings Other a) CLP for obtained earnings were other 31, 2017, December As of than the amount Th$11,985,832 lower is CLP which Th$2,608,255, land in the of area a large of the sale due to mainly in 2016, obtained in 2016. Cordillera Aguas the subsidiary by Vitacura of district Financial Income b) was Th$6,084,902 CLP income of an interest 31, 2017, December As of in 2016, obtained than that lower Th$426,320 which is CLP obtained, temporary the lower of income as a result interest lower due to mainly cash surpluses. Financial Expenses c) to CLP expenses amounted financial 31, 2017, December As of when Th$3,997,321 CLP of an increase which meant Th$31,115,703, lower by explained mainly This was in 2016. those obtained to compared partially insurance, inflation of and the impact financial capitalization in bonds and banks. interest lower by offset Units Indexation from d) Results were Th$11,947,203 CLP of losses year, financial the 2017 the end of At Th$8,214,266, when CLP of expenditure in a lower resulting recorded, of revaluation a lower by explained mainly This was 2016. to compared 2016. to when compared the UF of Variation the lower due to the debt - 5.4% 9.9% 27.5% 27.5% (8.5%) % Var. 0 7,408,804 3,339,493 12,341,678 23,089,975 Dec. 16 136 4,258,167 1,335,159 6,780,639 25,378,111 13,004,146 Dec. 17 ) Depreciation and Amortization and ) Depreciation (CLP TH$) (CLP Anam S.A. S.A. EcoRiles Gestión y Servicios S.A. y Gestión non-water Non-regulated products utility Aguas del Maipo S.A. del Maipo Aguas 2.3. EXPENSES ANALYSIS Used Consumables and Materials Raw a) and consumables materials raw of costs 31, 2017, December As of Th$1,482,145 higher which is CLP Th$34,924,904, CLP to amounted higher due to mainly was The increase year. than the previous of production higher due to Th$2,315,717, CLP for costs electricity re-liquidation and higher sources groundwater from water potable Th$577,806. CLP chemical inputs for of cost lower by offset tariffs, Benefits Employee Expenses for b) to expenses amounted benefits employee 31, 2017, December As of than the previous higher Th$1,871,367 which is CLP Th$55,930,210, CLP with and bonuses associated remuneration higher by generated year, staff. with a larger based on CPI, together readjustments c to amounted and amortization depreciation 31, 2017, December As of than in the Th$7,384,547 CLP by which is higher Th$74,401,330, CLP with new associated depreciation of This is the result year. previous and Plant Trebal-Mapocho the of module such as the fourth assets Plan. Efficiency with the Hydraulic associated works An increase of CLP Th$2,288,136 which was mainly explained by higher higher by explained mainly Th$2,288,136 which was CLP of An increase in Gestión a decrease by this is offset Anam and EcoRiles, in activity the during Additionally, materials. of sales lower Servicios due to y biogas sales registered del Maipo Aguas year this of second semester plant. in the La Farfana located Plant the Methanization for 2. Non-Sanitation Services 2. Non-Sanitation An increase of CLP Th$4,125,159 mainly due to higher revenues revenues higher due to Th$4,125,159 mainly CLP of An increase requested infrastructure utility with changes in the water associated refunds. with insurance parties along third by 1. Sanitation Services 1. Sanitation Non-regulated revenues increased by CLP Th$6,413,295 at the end the end at Th$6,413,295 CLP by increased revenues Non-regulated was variation This year. the previous to when compared 2017 of by: explained b. Non Regulated Income Regulated Non b. This item shows an increase of CLP Th$1,246,875, which was mainly mainly which was Th$1,246,875, CLP of an increase shows This item consumptions unbilled for in the provision variation the by explained to clients. charge fixed for revenues with higher together 3. Other Regulated Income Regulated 3. Other Sewage revenue at the end of 2017 reached CLP Th$240,399,095, Th$240,399,095, CLP reached 2017 the end of at revenue Sewage CLP of The increase 2016. to 2.1% when compared of an increase with supplied along volume a higher due to mainly was Th$4,940,155 and 2017. during 2016 recorded indexations the tariff 2. Sewage Potable water revenue at the end of 2017 reached CLP Th$195,090,811, Th$195,090,811, CLP reached 2017 end of the at revenue water Potable when compared Th$4,690,946 CLP of an increase which represented volume supplied a higher of result as a year, financial the previous to and 2017. during 2016 recorded indexations with the tariff along 1. Potable Water 1. Potable a. Regulated Businesses a. Regulated Inversiones Aguas Aguas Metropolitanas Inversiones Earnings Release 206,664 Annual Report 2017 Annual Report 3,782,222 5,102,579 15,184,168 (1,814,230) (7,404,430) 2017 - 2016 2017 (2,301,850) (14,422,293) (10,288,252) (14,356,332) 1.8% 5.7% 3.2% 4.2% 11.2% (9.2%) 26.4% % Var. (1.0%) (9.6%) (86.2%) 782,634 16,728,956 Dec. 16 469,116,410 221,561,642 (66,318,416) (43,242,225) 149,848,626 (40,937,954) 287,880,058 (182,018,986) • A decrease in other earnings is mainly due to the fact that in 2016 in 2016 that the fact due to earnings is mainly in other decrease A • Vitacura. of land in the district of area a large sold Cordillera Aguas mainly to 2016, in financial income when compared An improvement • de in Unidades debt the readjustable of revaluation a lower due to Fomento. year, previous the to when compared income tax expense • Higher with the combined taxes earnings before higher by justified mainly Reform. Tax the 25.5% due to to 24.0% from change in tax rate 989,298 2,306,663 Dec. 17 (37,155,732) 219,259,792 (73,722,846) 135,492,294 484,300,578 292,982,637 (45,056,455) (192,307,238) 137 Net Income Net Financial Results* Financial Results* External Revenues External EBITDA Earnings Other INCOME STATEMENT (CLP TH$) (CLP INCOME STATEMENT and Expenses Costs Operating Tax Expense Tax Revenue Between Segments Between Revenue Depreciation and Amortization Income Operating * Includes interest income, finance costs, exchange rate differences and income from readjustment units. readjustment and income from differences rate exchange income, finance costs, * Includes interest compared 9.6% of a decrease showed this segment of The revenues due to: mainly year, the previous to with higher associated mainly revenues, in external An increase • supplied. volumes and higher tariffs in activity higher due to is mainly 5.7% of in costs An increase • for provision higher electricity, of cost higher maintenance, network associated costs higher costs, personnel higher accounts, doubtful operating higher and modifications infrastructure utility with water the UF. of variation with the associated plants, Sewage of cost mainly and amortization, depreciation of in the cost An increase • Trebal-Mapocho the of module such as the fourth assets new due to Plant. Treatment Sewage 3. RESULTS BY SEGMENT BY 3. RESULTS SEGMENT WATER RESULTS, ACCUMULATED 3.1 Net income as of December 31, 2017 amounted to CLP Th$68,718,709, Th$68,718,709, CLP to amounted 31, 2017 December income as of Net than in 2016. lower (7.5%) Th$5,570,486 which is CLP f) Net Income f) Net Income tax expense at the closing of the 2017 financial year was CLP was CLP year financial the 2017 of the closing at Income tax expense than the previous higher Th$2,924,676 which is CLP Th$46,378,978, change in the tax rate the by explained mainly was variation This year. Reform. Tax the due to 25.5%, to 24% from e) Income Tax Expense (Revenue) Tax Income e) Inversiones Aguas Aguas Metropolitanas Inversiones Earnings Release 19,979 42,880 239,189 1,981,261 2,106,765 1,961,282 (384,672) 2,460,739 3,400,946 Annual Report 2017 Annual Report (1,083,934) 2017 - 2016 2017 9.1% 1.6% 5.9% 53.6% (2.8%) 67.3% 36.8% % Var. >200% >200% (115.4%) 116,677 727,040 4,074,938 (719,000) (200,236) 3,661,034 2,942,034 Dec. 16 23,133,234 (2,131,435) (23,547,138) • An increase in costs, which corresponds to a higher activity in Anam Anam in activity a higher to which corresponds in costs, increase An • Servicios. y in Gestión in activity decrease a by offset and EcoRiles, a by explained mainly earnings which was in other An increase • Servicios y Gestión issued by notes the guarantee part of of recovery than more were they because in 2016 and which had been provisioned recorded. were sales asset Additionally, old. years 4 year, financial the 2017 of the closing at income tax expense higher A • with an together taxes in the income before an increase due to mainly 25.5%. to 24.0% from in the tax rate increase 159,557 329,304 4,314,127 (699,021) 4,127,986 5,622,316 4,923,295 Dec. 17 (1,284,170) 25,239,999 (23,931,810) 138 Other Earnings Other Financial Results* Tax Expense Tax Income Net Operating Income Operating Depreciation Depreciation and Amortization External Revenues External Segments Between Revenue EBITDA INCOME STATEMENT (CLP TH$) (CLP INCOME STATEMENT and Expenses Costs Operating The results of this segment showed an increase of more than 200% 200% than more of an increase showed this segment of The results of: composed mainly year, financial the previous to when compared activity increased due to mainly was revenue in external An increase • Anam and plants) in operating projects new due to (mainly in EcoRiles lower by This is offset services. in laboratory activity increased due to volume sales lower due to Servicios (mainly y in Gestión activity second during the Additionally, and meters). materials network of the from biogas sales recorded del Maipo Aguas year the of half plant. in La Farfana located Plant Methanization the higher due to mainly revenues in inter-segment An increase • load. due to activity excess EcoRiles’ due to activity 3.2 ACCUMULATED RESULTS, NON WATER SEGMENT WATER NON RESULTS, ACCUMULATED 3.2 * Includes interest income, finance costs, exchange rate differences and income from readjustment units. readjustment and income from differences rate exchange income, finance costs, * Includes interest Inversiones Aguas Aguas Metropolitanas Inversiones Earnings Release Annual Report 2017 Annual Report 4.3 FINANCIAL INCOME AND OTHER EARNINGS ANALYSIS EARNINGS AND OTHER INCOME 4.3 FINANCIAL Financial Income a) Th$1,170,736, CLP reached 2017 of quarter the fourth Financial income for mainly 2016, of than in the same quarter lower Th$173,464 which is CLP rates. interest lower due to Financial Expenses b) CLP reached 2017 of quarter the fourth for Financial expenses in the same period than higher Th$2,085,318 which is CLP Th$8,671,209, and financial capitalization lower by explained mainly This was 2016. of insurance. inflation of the impact Units Indexation from Results c) recorded, Th$2,301,806 were CLP of losses 2017, of quarter In the fourth to the same when compared Th$861,427 CLP by decreased that a figure due the debt, of revaluation a lower by explained mainly period in 2016, of the same quarter to when compared the UF of Variation the lower to 2016. Expense (Revenue) Tax d) Income was 2017 of quarter the fourth of closure the at The income tax provision the same to compared Th$2,541,549 CLP by lower Th$12,743,182, CLP income a lower by explained mainly was variation This year. last quarter a higher by offset Th$15,593,456, which is partially CLP of taxes before Reform. Tax the due to tax rate Income Net e) CLP to amounted 2017 of quarter the fourth income for Net than in the same (25.4%) lower Th$6,456,470 which is CLP Th$18,939,781, 2016. of quarter (194,711) 3,341,047 3,341,047 2,541,549 2,541,549 2,152,620 2,152,620 (1,188,427) (2,347,331) (1,386,807) (6,456,470) (13,993,515) 4Q17 – 4Q16 4Q17 2.2% 2.5% 2.8% 16.5% 16.5% 13.9% % Var. (0.3%) (16.6%) (94.3%) (25.4%) 139 4Q16 -8,412,002 14,842,255 61,047,135 -15,284,731 25,396,251 77,983,269 -53,571,269 -16,936,134 131,554,538 b) Personnel Expenses Personnel b) CLP reached expenses personnel 2017, of quarter During the fourth than in the same quarter Th$66,129 higher CLP which was Th$15,124,101, year. the previous of Expenses Amortization and Depreciation c) amounted 2017 of quarter the fourth for and amortization Depreciation than in the same higher Th$2,347,331 which is CLP Th$19,283,465, CLP to included in the period. investments with new associated 2016, of quarter Expenses d) Other CLP to amounted expenses other 2017, of quarter During the fourth than in the same quarter lower Th$49,537 which is CLP Th$29,815,057, the year. of 848,740 4Q17 18,939,781 -9,798,809 -12,743,182 80,135,889 60,852,424 -54,759,696 -19,283,465 134,895,585 Net Income Net Tax Expense Tax Financial Results* Financial Results* Other Earnings Other Operating Income Operating Operating Costs and Expenses Costs Operating Depreciation Depreciation and Amortization EBITDA INCOME STATEMENT (CLP TH$) (CLP INCOME STATEMENT Ordinary Revenue Ordinary In the fourth quarter of 2017, costs of raw materials and consumables materials raw of costs 2017, of quarter In the fourth than in the same Th$1,171,835 CLP by higher Th$9,820,538, CLP reached electric of cost higher due to mainly was The increase 2016. of quarter of production higher due to Th$1,641,596, CLP to mounting energy tariffs, re-liquidation and higher sources groundwater from water potable Th$288,223. CLP chemical inputs for of cost lower by offset partially a) Raw Materials and Consumables Used and Consumables Materials Raw a) 4.2 EXPENSES ANALYSIS Ordinary revenue for the fourth quarter of 2017 amounted to CLP CLP to amounted 2017 of quarter the fourth for revenue Ordinary than that (2.5%) higher Th$3,341,047 Th$134,895,585, which is CLP This year. financial the previous of in the same quarter obtained Aguas biogas from of the sale by explained mainly was variation with developers, agreements of number the increased del Maipo, with modifications associated revenue and higher refunds insurance parties. third by requested infrastructure utility water of 4.1 REVENUE ANALYSIS Revenue Operational a) * Includes interest income, finance costs, exchange rate differences and results due to readjustment units. readjustment resultsto due and differences rate exchange income, finance costs, * Includes interest 4. QUARTERLY RESULTS 4. QUARTERLY Inversiones Aguas Aguas Metropolitanas Inversiones Earnings Release Dec-17 8,451,451 6,121,864 9,327,456 6,019,370 8,106,442 13,595,574 Annual Report 2017 Annual Report Sewerage Networks Sewerage Plant Water Potable Chamisero Networks Water Potable Works Emergency Events Turbidity Plant Biogas Purification and Meters Connections INVESTMENTS (CLP TH$) INVESTMENTS (CLP 5.1 ASSET ANALYSIS 5.1 ASSET Inversiones Aguas Metropolitanas’ consolidated assets as of as of assets consolidated Metropolitanas’ Aguas Inversiones 1.2% when compared of an increase displayed 31, 2017 December CLP to Th$2,044,462,374 CLP from changing 31, 2016, December to Th$2,069,370,985. due to Th$31,598,384, mainly CLP by decreased assets Current CLP to amounting in cash and cash equivalents the decrease in the area surface a large of the sale due to mainly Th$46,318,798, This is in 2016. Cordillera Aguas the subsidiary by district Vitacura CLP to amounting receivables and other trade by offset partially sales, in regulated the increase by explained mainly Th$7,229,366 Th$6,556,177. CLP for taxes with recoverable together explained Th$56,506,995 mainly CLP by increased assets Non-current to amounting properties and equipment in plant increase the net by year. made in the with the investments associated Th$57,187,131, CLP table: in the following shown are works The main investment 1.7% 1.7% 1.2% 1.2% 0.6% 0.6% 0.6% 3.0% 3.0% 0.6% 12.0% 12.0% (0.7%) % Var. (17.2%) 140 212,350,061 873,274,457 183,335,457 369,154,838 589,683,018 1,861,126,917 958,837,856 CLP Th$ CLP 1,085,624,518 Dec. 16 2,044,462,374 2,044,462,374 151,737,073 237,819,145 371,326,421 593,488,151 CLP Th$ CLP 866,737,268 964,814,572 1,917,633,912 Dec. 17 1,104,556,413 2,069,370,985 2,069,370,985 Total Liabilities and Shareholders’ Equity Liabilities and Shareholders’ Total Equity attributable to the controller to attributable Equity Interest Minority Equity Shareholders’ Total Total liabilities Total LIABILITIES AND EQUITY liabilities Current Non-current liabilities Non-current Total assets Total Non-current assets Non-current ASSETS Current assets Current 5. BALANCE SHEET 5. BALANCE Inversiones Aguas Aguas Metropolitanas Inversiones Earnings Release 0 Annual Report 2017 Annual Report years 101,691,038 607,153,338 505,462,300 More than 5 More 89% Fixed 16,018,104 44,137,532 3 to 5 years 5 3 to 19,604,953 79,760,589 11% 72,717,761 Variable 19,232,757 1 to 3 years 3 1 to 20,764,356 112,714,874 Interest Type Interest 6,283,345 12 months 57,448,775 15,309,206 35,856,224 21% AFRs Total 95,019,210 181,902,132 857,077,576 580,156,234 $ $ $ 141 Currency 11% Loans 68% Bonds CAPITAL TH$ CLP CAPITAL Bank Loans Bank Totals Promissory Notes Promissory Bonds Financial Instruments 5.3 FINANCIAL LIABILITIES STRUCTURE 5.3 FINANCIAL The maturity profile of the financial debt as of December 31, 2017 is 31, 2017 of December as the financial debt of profile The maturity as follows: Total equity increased by CLP Th$5,976,716 and net equity equity and net Th$5,976,716 CLP by increased equity Total Th$3,805,133. CLP by increased the controller to attributable Non-current liabilities displayed a decrease of CLP Th$6,537,187 Th$6,537,187 CLP of a decrease liabilities displayed Non-current CLP of loans in bank a decrease to mainly which corresponds (0.7%), Th$5,283,345. Current liabilities increased by CLP Th$25,469,084. This Variation Variation This Th$25,469,084. CLP by liabilities increased Current J Bond due the Series of the reclassification due to mainly was from debt lower by offset This is partially in 2018. its maturity to notes). (promissory Financial Contributions Reimbursable The current liabilities as of December 2017 increased by CLP CLP by increased 2017 December liabilities as of The current 2016. December to compared Th$18,931,895 when 5.2 LIABILITY AND EQUITY ANALYSIS AND 5.2 EQUITY LIABILITY Inversiones Aguas Aguas Metropolitanas Inversiones Earnings Release Annual Report 2017 Annual Report 22.1% 31.8% % Var. (10.1%) (70.1%) (245.1%) 31,930,864 31,930,864 66,122,006 66,122,006 Dec. 16 232,773,738 232,773,738 (93,203,205) (107,639,669) • Increase in revenue due to financial interest of CLP Th$1,245,986. CLP of financial interest due to in revenue • Increase item: the following by offset partially were variations These CLP and services for goods of sales from in revenues • Increase average and higher volume sales higher due to mainly Th$17,657,393 in revenue. and an increase tariff CLP by decreased activities investment for The disbursement of the construction of the completion due to mainly Th$20,625,753, and plant treatment sewage the Mapocho-Trebal of module the fourth during 2016. Cordillera Aguas land by Mata Lo Isla of the sale CLP of cash flow negative a net generated Financing activities CLP to amounting payments loan higher this is due to Th$34,201,704, Series C bonds by of the placement by offset partially Th$40,236,337, Th$1 million. CLP of a total for year, the of quarter Essal in the fourth Dec. 17 19,803,208 19,803,208 209,351,533 209,351,533 (141,841,373) (46,318,798) (113,828,958) 142 Closing cash balance Closing Financing activities CASH FLOW STATEMENT (CLP TH$) (CLP STATEMENT FLOW CASH Operating activities Operating Net flow for the period for flow Net Investment activities Investment The flow from operating activities decreased by CLP Th$21,012,652 Th$21,012,652 CLP by decreased activities operating from The flow 2016. and December 2017 December to when compared as follows: were variations The main mainly Th$23,422,205, CLP of suppliers to in payment • Increase utility water of suppliers to payments with higher associated and leases. transfers infrastructure paid, which in income taxes Th$9,054,587 CLP of increase An • year financial the 2017 in the PPM for the change by is explained a large of with the sale income associated for (including payment the by owned which was district Vitacura in the area surface in sales. plus an increase Cordillera), Aguas subsidiary when Th$3,929,177, CLP of payments benefit in employee • Increase and remuneration higher by generated year, the previous to compared staff. larger a with together CPI, by readjustments with bonuses associated other annuities and payments, and benefit in premium •Increase Th$2,836,308, CLP by policies underwritten arising from obligations 24 months. for insurance fire of with the payment associated 6. CASH FLOW 6. CASH Inversiones Aguas Aguas Metropolitanas Inversiones Earnings Release Annual Report 2017 Annual Report As of December 2017, current liquidity decreased by 25.6% due to adue to 25.6% by decreased liquidity current 2017, December As of explained mainly Th$31,598.384 (17.3%), CLP of assets in current decrease and an in 2016, Vitacura of in the district land area a large of the sale by the of as a result Th$25,469,084, CLP liabilities of in current increase in 2018. maturity to its J Bond due Series the of reclassification in the an increase of 1.1%, as a result by decreased leverage Total interim of the payment due to Th$18,931,895, mainly CLP of liability total in an increase by offset 2017, of quarter dividends in the first in the earnings generated by explained Th$5,976,716, CLP of equity year. financial the 2016 dividends for of the distribution by offset 2017, the controller to attributable on equity return The annualized equity in the average an increase 8.5%, due to of a decrease displayed the financial in the income for and a decrease Th$6,430,904 CLP of Th$5,570,486. CLP of year INFORMATION 8. OTHER Tariffs a) and income operating our determining factor important The most regulated and sales our for set is the tariffs financial situation the S.I.S.S.S. by regulated are we company utility As a water services. Rates Services with the Sanitary in accordance set are tariffs and our de 1988. Nº70 D.F.L. Law. and, during this period, years five every reviewed are levels tariff Our an indexation to linked additional readjustments to subject are from variation applied when the accumulated which are polynomial, calculations to according higher, or is 3.0% adjustment the previous are readjustments the Specifically, indexes. inflation various based on Price Index, the Consumer includes that applied based on a formula and the Sector the Manufacturing of Goods Price Index the Imported the by measured which are all of Price Index, Producer Manufacturing 1.13 3.71 0.31 8.27 6.55 0.86 0.20 0.80 12.70 74.29 Dec. 16 1.14 5.71 7.06 0.78 0.22 3.34 0.64 0.08 11.62 68.72 Dec. 17 143 . $ % % % times times times times times times Current Liquidity Current Acid Test Ratio Test Acid Dividend Yield Dividend Yield (*) LIQUIDITY Earnings Per Share Earnings Per LEVERAGE Leverage Total Leverage Current Leverage Long-term Ratio Coverage Interest ROA EARNINGS ROE Current liquidity: current assets / current liabilities. liquidity: / current Current assets current liabilities. / current cash and cash equivalents ratio: Acid liabilities payable leverage: equity. / total Total liabilities/liabilities current leverage: Current payable. liabilities/liabilities non-current leverage: Long-term payable. and annualized / annualized taxes expenses. interest financial income before ratio: coverage Interest year. the financial for assets net average year/total the on equity: annualized for Return return year. the financial of annualized assets average the annualizedyear/total income of financial on assets: Return subscribed and paid. shares of number year/ annualized the financial share: income of Earnings per Dividend yield: dividends paid per share / share price. / share share yield: dividends paid per Dividend $966.1. to it amounted 2016 December as of while $1,167.9, to amounts 2017 December price as of The share (*) 7. FINANCIAL RATIOS FINANCIAL 7. Inversiones Aguas Aguas Metropolitanas Inversiones Earnings Release Annual Report 2017 Annual Report only the quantity, quality and continuity of raw water available at each each at available water raw of and continuity quality the quantity, only in potable treated properly it being of but also the possibility uptake, plants. treatment water we that reserves water important have we drought, In case of reservoirs, Encañado and Lo Laguna Negra Yeso, in the El maintain which developed, have we plans that the contingency in addition to be could that impacts negative possible the reduce us to allow In operations. our for conditions weather adverse by generated that which means since 2010, persists period, drought the current use of intensive water, raw of the purchase plans such as contingency being are among others, rights, water of and purchase leasing wells, and to the drought of the impact reduce to All this in order applied. and continuity. quality of in terms both services normally, our provide Analysis Market c) it in which the market in variation display does not The Company its services and the legal of the nature because, due to participates area. in its concession competitors have it does not in force, regulations for 98.8% coverage, water potable A. has 100% Andinas S. Aguas basin. in the Santiago treatment sewage of service and 100% sewerage 98.9% for coverage, water potable A. has 100% S. Cordillera Aguas treatment. in sewage service and 100% sewerage 99.4% coverage, water potable A. has 100% S. Manquehue Aguas treatment. in sewage service and 100% sewerage service in sewerage 95.7% coverage, water potable A. has 100% Essal S. treatment. sewage and 100% Region, XIV in the and 92.6% Region X the d) Capital investment of results on our impact has the greatest that variables the One of These are capital investments. are and financial situation operations types: two of plan an investment agree to required are We investments. Committed during make must we with the S.I.S.S., which describes the investments investment on which the corresponding the date following years the 15 144 In addition, the tariffs are subject to readjustment to reflect additional additional reflect to readjustment to subject are In addition, the tariffs the S.I.S.S. by authorized services previously A., Andinas S. Aguas period for the 2015-2020 for in force The tariffs the Ministry of 5, 2015, June on 83 dated No. Decree by approved were force into and came and Reconstruction Development Economy, of 3, on September in the Official Gazette 1, 2015 (published on March the same five- A. for S. Cordillera Aguas for tariffs The current 2015). on 152 dated No. Decree by approved were period 2015-2020 year 2015 (published 30, June as of force 2015, and came into 19, October tariffs 25, 2015) and the current November on in the Official Gazette No. Decree by approved were S.A. 2015-2020 Manquehue Aguas for 2015 19, on May force 2015 and came into September on 16 139 dated 25, 2015). November on in the Official Gazette (published the period for in force Essal, the tariffs the subsidiary for Meanwhile, 25, August on 143 dated No. Decree by approved were 2016-2021 in the (published 12, 2016 on September force and came into 2016, 21, 2017). January on Official Gazette Risk Market b) risk, which is of in terms situation a favorable displays company Our sector. utility water the of the specific characteristics due to mainly quarter from vary may results is seasonal and operating business Our recorded demand and income are of levels The highest quarter. to and the lowest March) to (December months during the summer to (June months and income during the winter demand of levels in warmer higher is water the demand for In general, September). the additional water due to mainly months, than in cooler months uses external and other systems irrigation by generated requirements of water. the optimal affect eventually conditions may weather Adverse collection of services, because the processes utility water of delivery on the extent large a depends to Water Potable of and production such Factors basins. in the river develop conditions that climatic temperature, and fog), hail, rain, (snow, precipitation as weather not determine and turbidity flows river carryover, sediment humidity, - - - - July 2017 July 2017 July May 2017 May June 2017 June March 2016 March 2016 March January 2017 January November 2016 November September 2017 September 2017 September January 2016, January 2017 and 2017 January 2016, January January 2016, January 2017 and 2017 January 2016, January Group 2 Group Rinconada de Maipú S.A. CORDILLERA AGUAS S.A.: ESSAL 1 Group 2 Group 3 Group Chinquihue Group 1 Group AGUAS ANDINAS ANDINAS S.A.: AGUAS AGUAS MANQUEHUE S.A. MANQUEHUE AGUAS María Santa Chicureo Chamisero Trapenses Los 3 Grande Valle Alerces Los Chilean National Statistics Institute. The most recent indexations carried indexations recent The most Institute. Statistics National Chilean dates: applied on the following were company Group each out by Inversiones Aguas Aguas Metropolitanas Inversiones Earnings Release Annual Report 2017 Annual Report All this favorable situation has meant that the risk classifiers have have classifiers the risk that has meant situation All this favorable In the case of debt. long-term AA+ for of rating assigned us a risk and Fitch rating 1 level class us a first assigned Rate Feller shares: rating. 2 level class a first assigned us Ratings 145 in progress is capitalized. IAS 23 establishes that when a company when a company that 23 establishes IAS is capitalized. in progress on that the interest finance investments, to in order debt acquires and included expense the interest from be subtracted must debt such of amount total to the up work in the financed construction made at disbursements the to rate the respective applying interest, the Accordingly, statements. the financial submission of of the date plan affects capital investment with our associated Financial Costs in the income statements, recorded expense interest of the amount work with the together recorded expenses are and these financial financial in our and Equipment” Plant “Property, under in progress statements. Financial Aspects e) currency local to linked is largely revenue Our Risks: Currency currency issued in local is mainly debt our Therefore, developments. currency foreign for risks significant record do not we and, therefore, operations. held risk rate the interest 31, 2017, December of As Risk: Rate Interest a 88.9% at up of A. is made S. Metropolitanas Aguas Inversiones by of is composed debt Fixed-rate rate. variable at a and 11.1% rate fixed financial and repayable bond issues (76.1%) and long-term short-term loans to corresponds debt variable-rate (23.9%), while contributions banks. with domestic Inversiones by held risk rate the interest 31, 2016, December As of and 11.5% rate 88.5% fixed of A. consisted S. Metropolitanas Aguas and long-term short-term of consisted debt Fixed-rate rate. variable (25.8%), financial contributions and repayable bond issues (74.2%) banks. with domestic loans of consisted debt variable-rate while and monitoring rate interest of a policy maintains The Company of the cost optimizing managing, which, with the purpose of available the hedging instruments evaluates financing, permanently in the financial market.
In accordance with current international financial reporting standards standards reporting financial international with current In accordance work in on capital investments 23, interest IAS specifically in Chile, Non-committed investments are those those are investments Non-committed investments. Non-committed make we plan and that in the investment contemplated not are that services and replace our of the quality ensure to in order voluntarily the replacement to related are These, in general, assets. obsolete water of the acquisition assets, and other infrastructure network of businesses, among others. in unregulated and investments rights Localities in the X and XIV Regions: June 1, 2016, June 14, 2016, August August 14, 2016, June 1, 2016, June Regions: XIV and X in the Localities 2016 16, January and 12, 2016 Essal S.A. S.A. Essal Alto Lampa: November 22, 2013 22, 2013 November Lampa: Alto Chicureo, Chamisero and Valle Grande III: August 10, 2016 10, August III: Grande Valle and Chamisero Chicureo, Santa María and Los Trapenses: December 23, 2014 December Trapenses: and Los María Santa Aguas Manquehue S.A. S.A. Manquehue Aguas Aguas Cordillera and Villa Los Dominicos: December 21, 2015 Dominicos: December Villa Los and Cordillera Aguas Aguas Cordillera S.A. S.A. Cordillera Aguas Localities: April 5, 2013, September 26, 2013, December 31, 2014, 31, 2014, December 26, 2013, April 5, 2013, September Localities: 2015 17, 12, 2015 and November January Greater Santiago Area: December 23, 2015 2015 23, December Area: Santiago Greater Aguas Andinas Aguas S.A. Dates of approval and updating of the development plans of the the plans of the development of and updating approval of Dates Group: Aguas plan becomes effective. Stpecifically, the investment plan reflects reflects plan the investment Stpecifically, plan becomes effective. to related out certain projects carry part to on our a commitment The above- standards. and service coverage certain quality maintaining and may years five every review to plan is subject investment mentioned occur. events when certain significant amendments require Inversiones Aguas Aguas Metropolitanas Inversiones Earnings Release
Annual Report 2017 Annual Report
Resilience and Finance Resilience José José Albornoz Sáez Enviroment Work and People Organization, Director Beltrán Irazábal Javier WITH THE PARENT RELATIONSHIP COMPANY lease an office only was there During 2017 Metropolitana Aguas with Inversiones contract of building in the corporate facilities S.A. for paid monthly. Andinas S.A., which was Aguas commercial similar maintain hope to We in the future. relationships Iván Yarur Sairafi Yarur Iván Director and Develpment Sustainability Andreu Sandra Pezareix Economy and Circular Operations Manuel Trias Baurier Affairs Legal Sánchez Larraín Camilo Service Management Mingo Rodriguez Eugenio and Communications Social Legitimacy, Director Relations Institutional Medina Valenzuela Gonzalo Construction Blanco Marenco Julián Alberto Services Customer
Narciso Berberana Sáenz Berberana Narciso participation Company Parent of Percentage 50.10234% the investment represents that Proportion The Company: Parent the of in the assets the represents in the company investment 52.31% of proportion MANAGERS: CORPORATE and Systems Planning, Engineering Ple Cabot Jorge Guillermo Pickering de la Fuente Pickering Guillermo Vice Chairman Piñera Chadwick Herman Principal Directors Samaniego Sangroniz Fernando Moltedo Manubens Rodrigo Calderon Escobar Ricardo Bosch Sierra Pedro Cano Iniesta Laureano Directors Alternate Berestesky Sonia Tschorne Rojas Silva Loreto Fontbona Terré Rodrigo Cros Christophe Officer Executive Chief DIRECTORS’ COMMITTEE DIRECTORS’ Chairman 146 LEGAL INCORPORATION OF THE COMPANY OF INCORPORATION LEGAL stock joint as an open incorporated Andinas S.A. was Aguas before 31, 1989 in Santiago, public deed on May by company the of An excerpt Laso. Raúl Undurraga Public Mr. Notary 10, June on published in the Official gazette was by-laws on page Commerce of in the Register being recorded 1989, Land, Mines and of the Registrar 1989 of of 7.040 13.981, No. Santiago. of Property Industrial ASPECTS LEGAL the of in the Register is registered The Company on now (from and Insurance Securities of Superintendence 346 in No. under Commission”) as “Financial Market known it company, As a sanitation 18.777. No. Act with accordance Services, in Water of the Superintendence by is regulated with and Decrees 1989 18.902 of No. Act with accordance in 1988. enacted both 70, 382 and No. No. Law of Force PURPOSE CORPORATE of purpose is the rendering corporate The Company’s and operation the building services which considers sanitation potable distributing and producing public services aimed at of within wastewater, and disposing as collecting as well water Santiago, in the Greater distributed the concession area Lagos De los y Ríos and in the De los locations peripheral a with clients provide To Valdivia. of the city except Region, has non-sanitation service, the Company comprehensive services such as liquid industrial diverse subsidiaries rendering analysis. and technical materials of trade treatment, waste
Fax (56-2) 569 2777 (56-2)
TIN TIN - 5 61.808.000 Capital subscribed and paid auditors External Ernst & Young Website www.aguasandinas.cl Th$155,567,354 (56-2) 731 2482 (56-2) Service telephone Line of business Line of of distribution purification, Catchment, wastewater and disposal of water potable TIN Box P.O. 1537 Santiago Telephone 688 1000 (56-2) 61.808.000-5 Santiago Chile Santiago Legal address Legal Balmaceda Nº 1398, Presidente Avenida Registry in Register of Securities of in Register Registry Nº 0346 Type of company of Type stock joint Open Name Andinas Aguas S.A. GENERAL INFORMATION GENERAL
and Subsidiaries Aguas Andinas Andinas Aguas S.A. Inversiones Aguas Aguas Metropolitanas Inversiones Earnings Release Annual Report 2017 Annual Report Pending January 1 2018 January 2018 1 January 2018 1 January 2018 1 January 2018 1 January 2019 1 January 2019 1 January 2019 1 January 2019 1 January 2019 1 January 1 2019 January Date of enforcement of Date Annual periods beginning on or after after periods beginning on or Annual after on or Annual periods beginning after on or Annual periods beginning after on or Annual periods beginning after on or Annual periods beginning after on or Annual periods beginning after on or Annual periods beginning after on or Annual periods beginning after on or Annual periods beginning after on or Annual periods beginning after on or Annual periods beginning UPGRADES AND MODIFICATIONS IFRS of Adoption IFRS 1, First-time payments IFRS 2, Share-based contracts IFRS 4, Insurance in associates 28, Investment IAS and ventures joint property Investment 40, IAS IFRS 3, Business combinations Financial instruments IFRS 9, arrangements Joint IFRS 11, 12, Income taxes IAS costs 23, Borrowing IAS in associates 28, Investment IAS and ventures joint financial Consolidated IFRS 10, statements The Company’s Management has been analyzing the eventual impact impact the eventual has been analyzing Management The Company’s statements. the financial to and amendments these standards of on in annual periods starting effect into enter those to However, have to expected not are and they been analyzed 1, 2018 have January future of and presentation on the preparation impact a significant statements. financial January 1 2017 1 January 2017 1 January 2017 1 January January 1 2021 January January 1 2018 January January 1 2018 January January 1 2018 January January 1 2019 January 1 2019 January Date of enforcement of Date Date of enforcement of Date Annual periods beginning on or after after on or Annual periods beginning Annual periods beginning on or after after Annual periods beginning on or Annual periods beginning on or after after Annual periods beginning on or Annual periods beginning on or after after Annual periods beginning on or after Annual periods beginning on or after Annual periods beginning on or Annual periods beginning on or after after on or Annual periods beginning after on or Annual periods beginning after on or Annual periods beginning 147 NEW STANDARDS NEW Financial instruments, IFRS 9, and measurement recognition IFRS 15, Revenue from contact contact from IFRS 15, Revenue with customers IFRIC 22, Foreign currency currency IFRIC 22, Foreign and advance transactions consideration IFRS 16, Leases IFRS 16, Income over IFRIC 23, Uncertainty Treatment Tax contracts Insurance IFRS 17, AMENDMENTS AND/OR AND/OR AMENDMENTS MODIFICATIONS in interest of IFRS 12, Disclosure entities other cash flows of Statement 7, IAS 12, Income taxes IAS The standards and interpretations, as well as the improvements as the improvements as well and interpretations, The standards entered not been issued but IFRS, which have to and amendments are statements, these financial issue of of on the date effect into applied these standards has not The Company below. summarized enforcement. their before The Company has applied these rules and concluded that they did not did not they and concluded that has applied these rules The Company statements. on the financial an impact have
Functional and presentation currency and presentation Functional and as the improvements as well and interpretations, The rules on the effect into enter been issued to IFRS, which have changes to below summarized are statements, these financial issue of of date The Group complies with the legal conditions of its operations’ its operations’ conditions of complies with the legal The Group the Subsidiaries regarding the sanitation particularly environment, normal operation companies show Group regulations. sanitation their activities; their develop conditions in each scope in which they of capable are and they operation a profitable show projections the of In the opinion operations. their for system using the financial as an on- continuing of capability their this determines management, which norms under the accounting by as established going company, issued. are statements financial these consolidated pronouncements accounting New 1.1 PREPARATION BASIS 1.1 PREPARATION the consolidated are statements financial These consolidated December and 31, 2017 December of as statements financial position changes of statements comprehensive and the consolidated 31, 2016 December ended on years financial for and cash flows equity in net based on been prepared have They 2016. 31, and December 31, 2017 the issued by (IFRS), Standards Financial Reporting the International and “IASB”), (hereinafter Board Standards Accounting International IFRS the referred of adoption explicit the comprehensive, represent without reservations. are the Group in each Company of statements The financial in which the main economic environment of in the currency presented consolidated For Currency). (Functional those companies operate of each and the financial position results the statements, financial to (rounded Pesos in Chilean expressed are in the Group Company currency functional which is the Company’s pesos), thousands of consolidated for currency and its subsidiaries, and the presentation statements. financial 1. PREPARATION BASIS AND ACCOUNTING POLICIES ACCOUNTING AND BASIS 1. PREPARATION Inversiones Aguas Aguas Metropolitanas Inversiones Earnings Release Annual Report 2017 Annual Report Although these estimates and judgments were made subject to to subject made were and judgments estimates these Although the current issue of of the date as of available information the best happen in the may events some statements, financial consolidated in coming downward) or (upward variation a force which may future, acknowledging upon prospectively recorded be This should periods. said changes in the relevant of the effects registering variation, the statements. financial consolidated future
148
• Hypotheses used in the calculation of the reasonable value of of value the reasonable of used in the calculation • Hypotheses financial instruments be billed supplies to • Income from commitments third-party due to • Provisions disputes current from resulting • Risks • Asset appraisal and purchased goodwill (goodwill or decreased decreased or goodwill (goodwill and purchased appraisal Asset • value) investment depreciation due to • Loss for benefits of calculation used in the actuarial • Hypotheses employment of contracts of termination of companies from different industries and regions. Provides a new a new Provides and regions. industries different companies from of for requirements detailed and more recognition revenue model for has been mandatory Its application elements. multiple with contracts allowed. was adoption 1, 2018 and its early January since is Invoicing value. fair at income its sales measures The Company on the service performed work or consumption based on actual so that and rebates, discounts trade returns, of net receivable, and recovery the customer to transferred when is recognized revenue discounts and possible costs associated probable, is considered The Company reliably. can be estimated collections erroneous for on has no effect this Standard of force into the entry that considers contracts. customer from revenues of the recognition and calculations the information for Responsibility the information for is responsible Committee Director’s The corporate states which statements, financial in these consolidated contained included in the International and criteria all the principles that The been applied. have (IFRS) Standards Financial Reporting financial consolidated the following approved Committee Director’s 28, 2018. on March held in the meeting statements for Andinas S.A. and Subsidiaries Aguas of statements The financial in Committee Director’s their by approved were 2016 year the financial 2017. 29, on March held the Meeting of been used in the preparation have estimations The following statements: financial consolidated assets fixed intangible of life • Useful IFRS 15 “Revenue from Client Contracts”, issued in May 2014, sets out out 2014, sets in May issued Contracts”, Client from IFRS 15 “Revenue information useful display applies to a company that the principles amount, about the nature, statements the financial of the users to ordinary coming from the revenue of timing and uncertainty This a client. with a contract arising from and cash flows activities and weaknesses the inconsistencies improve aims to standard new comparability will facilitate a model that provide 18 and to IAS of As of December 31, 2017, the Company evaluated the credit loss policy policy loss the credit evaluated the Company 31, 2017, December As of H), concluding that 1 letter in Note (described debtors its commercial of model, as this standard loss an expected considers implicitly this policy credit and sustainable is based on available This assessment requires. the model with the aforementioned, In accordance information. risk will risk with credit associated losses impairment determining for and on the preparation effects will be no be modified, and there not statements. financial the Company’s submission of IFRS 9 requires the Group to record expected credit losses on all of on all of losses credit expected record to the Group IFRS 9 requires or on a 12-month either debtors, and trade securities, loans its debt basis. lifetime It introduces a “more prospective” model of expected credit losses losses credit expected model of prospective” a “more It introduces approach reformed and a substantially accounting impairment for apply to the option have Companies shall also hedge accounting. to related value changes in fair from gains and losses for the accounting value fair at financial liabilities designated risk” for credit “own to other the IFRS 9 without applying loss in advance, or profit through January since 1 has been mandatory Its application requirements. allowed. was adoption 2018 and its early 2014. Establishes the principles for financial reporting of financial financial of reporting financial for the principles 2014. Establishes useful that way, liabilities in such a and also financial assets timing and the amounts, assessing for information and relevant of to users is displayed cash flows future an entity’s of uncertainty statements. financial IFRS 9, “Financial Instruments” of which the final version was issued was issued version which the final of Instruments” “Financial IFRS 9, in July Note of IFRS 9 and IFRS 15 accounting policy in the Financial in the Financial policy IFRS 9 and IFRS 15 accounting of Note 31, 2017 December as of Statements Inversiones Aguas Aguas Metropolitanas Inversiones Earnings Release Annual Report 2017 Annual Report 53.50650 100.00000 100.00000 100.00000 100.00000 100.00000 100.00000 99.990300 Total 2016 % 2016 Total 1.00000 0.00000 2.152200 0.961500 51.00000 0.000002 17.350004 99.999600 Indirecto % Indirecto 2.506500 0.000400 Directo % Directo 97.847800 82.649996 99.999998 99.038500 99.990300 99.000000 53.50650 100.00000 100.00000 100.00000 100.00000 100.00000 100.00000 99.990300 Total 2017 % 2017 Total 1.00000 0.00000 2.152200 0.961500 51.00000 0.000002 17.350004 99.999600 Indirecto % Indirecto 2.506500 0.000400 Directo % Directo 97.847800 82.649996 99.999998 99.038500 99.990300 99.000000 149 Aguas Manquehue S.A. Manquehue Aguas Nombre Sociedad Nombre Aguas Cordillera S.A. Cordillera Aguas Análisis Ambientales Análisis Ambientales S.A. Gestión y Servicios S.A. y Gestión Ecoriles S.A. Ecoriles S.A. del Maipo Aguas Empresa de Servicios Empresa Lagos Sanitarios de Los S.A. Iberaguas Inversiones Ltda. 89.221.000-4 R.U.T 96.809.310-K 96.967.550-1 96.828.120-8 96.945.210-3 76.190.084-6 96.579.800-5 96.897.320-7 The Group manages and measures the performance of its operations its operations of the performance manages and measures The Group are: internally reported segments operative The segment. business by (Water). operations business • Sanitation (Non-Water). business operations • Non-sanitation than goodwill other assets Intangible C. as as being identifiable asset an intangible recognizes The Company economic benefits bring about future to be likely to proves as it long valued. reliably can be and its cost to the entity will flow that IFRS 8 sets the standards for reporting operative segments and and segments operative reporting for the standards IFRS 8 sets as defined are segments and services. Operative products releasing financial information which separate for an entity of components making for Management by reviewed and regularly is allocated the subsidiaries and to resources of decisions on the assignment performance. their evaluating B. OPERATIVE SEGMENTS B. OPERATIVE The Subsidiaries included in the consolidated financial statements of of statements financial The Subsidiaries included in the consolidated Andinas S.A. are: Aguas The Company and its Subsidiaries have policies similar to those used those used to policies similar and its Subsidiaries have The Company the Group. by All transactions, balances, losses and profits of the Group companies companies the Group of and profits balances, losses All transactions, process. during the consolidation will be eliminated Consolidated financial statements include the financial statements statements include the financial statements financial Consolidated the Company by controlled and the organizations the Company of which over those organizations Subsidiaries are (its Subsidiaries). to the right activities, important control to has the power the Group to power use that to and the capacity yields share variable review Subsidiaries consolidate amounts. yield on investor an influence have excluded and are the Group to is transferred control the date as from exist. ceases to the Group on the date the consolidation from A. BASES FOR CONSOLIDATION FOR A. BASES Below is a description of the main accounting policies implemented in in policies implemented accounting the main of is a description Below statements. financial consolidated these of the preparation 1.2 ACCOUNTING 1.2 ACCOUNTING POLICIES Inversiones Aguas Aguas Metropolitanas Inversiones Earnings Release Annual Report 2017 Annual Report
2. Equipment operation environment operation 2. Equipment use of 3. Intensity restrictions. contractual or regulatory 4. Legal, Subsequent costs are included in the value of the initial asset or are are or the initial asset of value included in the are costs Subsequent economic when future only asset as being a separate considered the to flow to are likely items asset with fixed associated benefits The determined. reliably can be the element of and the cost Group and repairs Other is deregistered. substituted the component of value in which year the financial for included in the results are maintenance incurred. are they plant property, for life useful and estimated method Depreciation and equipment: the how reflects the Company applied by method The depreciation in which the period over the entity be used by to expected are assets straight- uses the therefore The Company profit. generate they based on life, useful the technical over method line depreciation (specialized experts independent by prepared studies technical are assets of life and useful value The residual companies). external the Statement of each closing at necessary if and adjusted checked Financial Position. of recoverable than its estimated is higher an asset of value When the recoverable. the amount to reduced it is immediately amount, lives Useful based are the depreciation in calculating considered lives The useful companies. external specialized by prepared studies on technical considering that allow arises to information as new revised are They modified. has been asset any of life the useful is based on several life useful the total of assets to The assignment These factors the equipment. of including the nature factors, include: generally materials construction or the equipment of 1. Nature 150 Over time, useful life may require modifications due to changes in the to changes in the due modifications require may life time, useful Over the above- about changes in the assumptions of as a result estimates factors. mentioned GOODWILL D. in the generated investments) of value in the decrease Goodwill (a the Group’s over cost acquisition of the excess represents merger and liabilities, including identifiable assets of value in the fair share the acquisition date. as of a Subsidiary of liabilities contingent upon appraised temporarily are and liabilities acquired The assets from year within one then revised and are the company taking over assets of value fair the definite Until the latest. at the acquisition date the acquisition between the difference and liabilities is determined, is temporarily company the acquired of value price and the book as goodwill. recorded in the financial recorded goodwill is the definitive In the event of acquisition, the items the share following year the for statements to modified comparison purposes are for shown year the previous and liabilities and the assets the acquired of value the incorporate acquisition date. the share goodwill from definitive IFRS, i.e. to transition our of the date to prior Goodwill generated date, that at registered value the net at 1, 2008, is maintained January using the registered is generated goodwill subsequently whereas acquisition method. the reducing impairment any Instead, amortized. Goodwill is not is estimated cost book the net below an amount to value recoverable for case, an adjustment period. In this accounting each the end of at 36. IAS by as required is in order, impairment AND EQUIPMENT PLANT E. PROPERTY, Property, of valuation the for method uses the cost The Company are that includes expenses cost Historical and Equipment. Plant the asset. the acquisition of to attributable directly
• Expected reactions from current or potential competitors. competitors. potential or current from reactions • Expected the affect changes that and technological factors climatic or • Natural profits. generate to capacity • Predictable life of the business or industry. the business or of life • Predictable changes in demand). obsolescence, (product factors • Economic • Legal, regulatory or contractual restrictions. restrictions. contractual or regulatory • Legal, Some of the factors that should be considered for the estimation of of the estimation for be considered should that the factors Some of are: life useful Determination of useful life life useful of Determination Intangible assets with indefinite useful lives are water rights and and rights water are lives useful with indefinite assets Intangible in the period, as established an indefinite for granted easements Resources Water the by granted rights and the acquisition contracts Works. Public of the Ministry of Department Intangible assets with indefinite useful lives lives useful with indefinite assets Intangible The estimated useful life of software is 4 years. For any other asset asset other any For years. is 4 software of life useful The estimated is the period amortization for life the useful life, useful with a defined copyrights. or in the contracts defined Software The amortization method employed by the Company reflects the the reflects the Company by employed method The amortization are asset the of economic benefits which the future for pattern uses the therefore The Company the entity. be used by to expected method. depreciation straight-line Intangible assets with defined useful lives lives useful with defined assets Intangible ii. Amortization method for intangible assets: assets: intangible for method Amortization ii. Intangible assets acquired separately are shown at cost subtracting subtracting cost at shown are separately acquired assets Intangible is Amortization losses. and impairment amortization accumulated lives. useful estimated their basis over on a straight-line calculated checked are method and the amortization lives useful Estimated any of including the effect statement, each status of the closing at thereon. change in the estimate i. Intangible assets acquired separately: separately: acquired assets i. Intangible Inversiones Aguas Aguas Metropolitanas Inversiones Earnings Release Annual Report 2017 Annual Report When the recoverable value of an asset (or cash-generating unit) is is unit) cash-generating (or an asset of value When the recoverable asset that of value the book value, than its book be less to considered and value its recoverable to adjusted unit) is cash-generating (or for When a loss impairment. for a loss show immediately the results cash-generating (or the asset of value the book is reversed, impairment provided estimate, revised value the recoverable to unit) is adjusted that value the book exceed does not value book the adjusted that cash-generating (or asset for no loss if been determined have would years. financial in previous had been booked unit) impairment G. LEASES i. Financial leases of the leases when the conditions classified as financial are Leases to the and benefits risks all the ownership transfer substantially lease leases. classified as operative are leases All other lessee. leases ii. Operative over expense as a straight-line recognized are payments lease Operative basis is more systematic when another except the lease, of the term in which the economic the time pattern reflecting for representative shown leases are consumed. Contingent are leased asset the of benefits incurred. are in which they the period over as expenses an operative agree to in order be received incentives lease Should The accumulated as a liability. recognized are incentives such lease, basis as a deduction straight-line on a is shown incentives of benefit basis is systematic when another except expense, the leasing from in which the pattern temporary the reflecting for representative more consumed. are leased asset the of economic benefits leases iii. Implicit the for check to contracts their and subsidiaries review The Company with IFRIC 4. in accordance implicit leases of existence possible 151
Policy for estimating the costs for dismantling, decommissioning or decommissioning or dismantling, for the costs estimating for Policy and equipment: plant property, renovating and Company the by constructed the assets of the nature Due to construction or obligations no contractual are there that given the IFRS, the concept in those mentioned than other requirements these of the date as of applicable is not costs dismantling of statements. financial consolidated policy sales asset Fixed comparing the by calculated are sales asset fixed of The results in the registered and are value with the book income received Results. Comprehensive of Statement Consolidated EXCEPT ASSETS INTANGIBLE AND TANGIBLE OF IMPAIRMENT F. GOODWILL and intangible its tangible of values the book revises The Group the of date at each closing life useful with a defined assets there see whether to Financial Position of Statement Consolidated the this exist, Should impairment. due to a loss of indication is any determine to in order is estimated such assets of value recoverable possible When it is not been sustained. has impairment any whether the Group in particular, an asset of value the recoverable estimate to which the to Unit the Cash Generating of value the fair estimates belongs. asset for annually tested are lives useful with indefinite assets Intangible have might the asset that indications are when there or impairment the period. the end of before impairment sustained minus sale value its fair of amount is the greater value The recoverable in use, the estimated value the estimate To in use. value and costs value using a pre- its current from discounted are cash flows future the money of conditions the current both reflect to rate tax discount with the asset. associated time and the specific risks over market 5 4 10 50 80 80 80 life (years) (years) life Maximum useful useful Maximum 7 5 5 5 5 4 25 life (years) life Minimum useful useful Minimum Plant & equipment & Plant equipment Computer & accessories installations Fixed vehicles Motor assets leased of Improvement & equipment plant property, Other Buildings ITEM The useful life period (in years) by type of asset is as follows: is as follows: asset type of by years) period (in life The useful Inversiones Aguas Aguas Metropolitanas Inversiones Earnings Release Annual Report 2017 Annual Report consumption between the date of the last meter reading (following (following reading meter the last of the date between consumption closing statement and the financial routine) monthly an established bad debts of the estimate from value net at recorded These are date. be recovered. to unlikely debts or the which sets policy, credit the to is subject policy debtor The trade reaching scenarios for the different conditions and also payment customers. with overdue agreements accounts and other debtors commercial of impairment for Policy receivable. its financial assets affecting impairments evaluates The Company as bad debt is recognized The amount on a periodical basis. that the extent to is reduced an asset of value The book provisions. in the statement is booked is used and the loss account the provision When an account expenses.” in “other results comprehensive of for provisions against it is recorded recoverable, is not receivable receivable. accounts considering information: historic based on the following are Estimates billing the after months eighth that which indicate statistics, recovery of recovering of the probability i.e. is marginal, recovery of possibility is minimal. billed the amount S.A., Cordillera Aguas Andinas S.A. and its subsidiaries Aguas In is made for provision S.A. and Essal S.A., a 100% Manquehue Aguas than 8 months. more overdue with debts customers S.A., Cordillera Aguas Andinas S.A. and its subsidiaries Aguas For the of 100% of Essal S.A., a provision S.A. and Manquehue Aguas into transformed debts consumption balance is made for agreed agreements. payment S.A. EcoRiles Anam S.A., Servicios S.A., y the subsidiaries Gestión For customer is made for provision S.A., a 100% del Maipo Aguas and overdue. than 120 days more debts receivable. notes overdue is made for provision 100% A 152 ii. Financial assets at fair value with changes in results with changes in results value fair at ii. Financial assets i. Effective interest rate method method rate interest i. Effective the calculating for is the method method rate interest The effective the assignment of and liability or asset a financial of cost amortized The effective period. the whole over expense or income interest of future the estimated discounts exactly that is the rate rate interest and the financial asset, of life expected the over receivable cash flows value. nominal (NPV) with its Value Present equals the Net when the results through value fair at shown are Financial assets with changes value fair as at is designated or trading for is held asset in results. at valued are in results with changes value fair at Financial assets in the results. gain is recognized or loss resulting and any value fair dividend or includes any in the results gain recognized or loss The net the financial asset. over received interest in Sociedad shares hold and its subsidiaries The Company value fair their at valued been S.A., which have Puntilla Eléctrica subsequent Their 39. No. IAS in as defined the acquisition date, at as market, is no active because there cost will be at measurement in the same standard. provided receivable. and accounts iii. Loans non-derivative are receivable accounts and other loans debtors, Trade traded not periods, determinable or in fixed payable financial assets receivable. and accounts loans and classified as market on an active using the cost amortized at valued are receivable and accounts Loans for except impairment, for loss any less method rate interest effective is interest of the recognition where receivable, accounts short-term immaterial. receivable. accounts and other debtors Trade services, sewage consumption, water the billing of are debtors Trade from revenue services and the accrued and other treatment sewage The institutions issuing these instruments are bank Companies or Companies or bank are issuing these instruments The institutions have instruments and their rating, credit subsidiaries with an N-1 bank the principal paying for high capacity (very AA least at of a rating be not which would and maturities, terms on the agreed and interest the industry changes in the issuer, possible by significantly affected the economy). or which it belongs to Aguas Andinas S.A. and its subsidiaries invest in low-risk instruments instruments in low-risk Andinas S.A. and its subsidiaries invest Aguas investment in their established standards the classification meet that AAfm an have therefore in must The mutual funds invested policies. associated loss against high protection very with / M1 (quotas rating changes in to sensitivity with the lowest risks/quotas with credit agreements and repurchase deposits Term economic conditions). with the highest (instruments classified as N-1 instruments are and terms the agreed under capital and interests paying for capacity maturities). The classification depends on the nature and purpose of the financial the financial of and purpose depends on the nature The classification initial recognition. their the time of at and is determined assets • Financial assets available for sale. sale. for available • Financial assets • Loans and accounts receivable. receivable. accounts and • Loans • Investments held to maturity. maturity. to held • Investments • Financial assets at fair value with changes in results. in results. with changes value fair at • Financial assets Financial assets are classified in the following categories: categories: following in the classified are Financial assets The acquisitions and disposals of financial instruments are are financial instruments and disposals of The acquisitions on which the Group the date i.e. trading, of on the date recognized down written are Investments sell the asset. or acquire commits to been have the investments from cash flows receive to when the rights and passed all the risks substantially has and the Group transferred ownership. deriving from benefits H. FINANCIAL ASSETS H. FINANCIAL Inversiones Aguas Aguas Metropolitanas Inversiones Earnings Release Annual Report 2017 Annual Report The treatment of hedge operations with derivative instruments is the is the instruments with derivative hedge operations of The treatment following: derivative of value Changes in the market value. fair of Hedges well as the items as hedges, as designated financial instruments in the results the financial to charge or as credit recorded hedged, are accounts. result respective hedging. Changes investment net currency foreign and Cash flow financial these derivative part of the effective of value in the fair “cash called reserve in an equity recorded directly are instruments results. in the registered part is the ineffective while hedge,” flow the result to transferred is not equity in net recognized The amount therein hedged are the operations of the results until account such operations. of date the expiration until or recorded gain or loss equity the net hedging discontinuation, of In the event hedging the underlying until maintained is date that to accumulated gain in or loss the accumulated moment, that At is executed. operation transaction. that affecting account in the result will be reversed equity the closing at value fair their at presented are Financial instruments in organized traded not derivatives case of each period. In the of conditions on the market based uses assumptions the Group markets, valuation. for date on that when effective be highly to is considered Hedging Effectiveness. directly item the underlying of cash flows or value the changes in fair cash or value changes in the fair by offset are the hedged risk to attributable to 125%. 80% ranging from effectiveness with the hedge instrument, of flow derivatives of the existence also evaluates The Group derivative. Implicit their whether to determine and financial instruments implicit in contracts provided the main contract, to related closely are and risks characteristics not are they If value. fair at being recorded is not the combination that variations value with the separately, recorded are they related, closely results. of statement the consolidated from directly being taken 153 Foreign currency transactions are converted to the functional the functional to converted are transactions currency Foreign Foreign date. the transaction as of rates using the exchange currency these of the liquidation from resulting gains and losses currency for rates exchange the closing at conversion and their transactions are currency in foreign and liabilities denominated assets monetary results. comprehensive of statement in the consolidated shown the financial of in the results registered are rates exchange Different accrued. have in which they year LIABILITIES L. FINANCIAL at shown first at are documents and similar payable bonds Loans, are They in the transaction. incurred the costs for value net fair their except rate, interest using the effective cost, amortized at then shown been signed, which have contracts which hedging for transactions for section. as described in the following valued been have HEDGE AND INSTRUMENTS FINANCIAL M. DERIVATIVE ACCOUNTING Andinas Aguas by financial instruments derivative of The employment management financial risk the Group’s S.A. and Subsidiaries follows use. the guidelines for policies, which establish as hedging financial instruments uses derivative The Group currency foreign and rates exchange inflation, reduce to instruments operations. its due to which it is exposed to items on current risks on the financial position value fair at recorded are Derivatives is value the if financial derivatives, In the case of date. statement negative, and, if Assets” Financial “Other under it is recorded positive, Financial Liabilities.” “Other under except in the results, directly recorded are value Changes in the fair hedge accounting as a been designated has when a derivative the IFRS to by the conditions established all of and meets instrument hedge accounting. apply $ 669.47 705.60 31-12-2016 31-12-2016 $ 739.15 614.75 31-12-2017 31-12-2017 CURRENCY American dollar Euro Assets and liabilities in foreign currency are shown at their respective respective their at shown are currency and liabilities in foreign Assets the as per year, each financial of the closing at rates exchange parities: following K. FOREIGN CURRENCY TRANSACTIONS TRANSACTIONS CURRENCY K. FOREIGN Additionally and after being authorized by the Ordinary Shareholders Shareholders Ordinary the by being authorized and after Additionally as additional dividend, can be distributed 70% the remaining Meeting, and is is maintained capitalization of level the current as as long policies. with the investment compatible The Company’s dividend policy, pursuant to article 79 of Act 18,049 on on 18,049 Act 79 of article to pursuant dividend policy, The Company’s earnings for the net 30% of distribute is to Companies, Public Limited lower were or exist In case these dividends do not year. each financial would provision the relevant Law, by than the minimum established be in order. J. DIVIDEND POLICY DIVIDEND POLICY J. Materials, spare parts and inputs are valued at acquisition cost, which which acquisition cost, at valued parts and inputs are spare Materials, is method The costing value. realization net their exceed does not turned over not have that Inventories cost. average the weighted on an annual basis and are valued are 12 months during the previous less. if value, market at recorded I. INVENTORIES I. INVENTORIES Inversiones Aguas Aguas Metropolitanas Inversiones Earnings Release Annual Report 2017 Annual Report P. INCOME TAX AND DEFERRED TAXES AND TAXES DEFERRED INCOME TAX P. and income tax payable income tax is the sum of for The charge liabilities. and tax assets in deferred variations for the tax result of on the basis is determined Income tax payable using is calculated the Group paid by be income tax to The the period. the closing on being approved, of in the process or approved tax rates financial position. of the statement of date between differences on the basis of recognized are taxes Deferred in the financial contained and liabilities assets of values the book used in the calculation tax figures and the corresponding statements liability using the balance-sheet recorded and are the tax result, of timing all taxable for recorded tax liabilities are Deferred method. all deductible for recognized are tax assets and deferred differences, offset to likely are tax benefits as future as long timing differences recognized not liabilities are or tax assets Deferred such differences. initial recognition or value reduced the arise from timing differences if and liabilities assets other of businesses) of in a combination (except results. the financial the tax or affect does not that in a transaction of date on the closing is revised tax assets deferred of value The book tax sufficient reduced until and is statement each financial position no longer are the asset part of or all of the recovery allow to results available. the tax rates at measured and liabilities are tax assets Deferred realizing or the liability settling the time of at be in effect to expected are or been approved have that based on the tax rates the asset, financial of the statement of the closing at be approved about to and liabilities reflects assets deferred of The measurement position. expects in which Group the way tax consequences of the possible the liabilities to and its assets of values the book settle or recover to report. of date right is a legal when there offset and liabilities are tax assets Deferred the same entity to tax liabilities related against tax assets offset to and tax authority. 154 accumulated to that date is adjusted quarterly in line with the changes with the changes in line quarterly is adjusted date that to accumulated bargaining collective The mentioned price index. in the consumer Andinas S.A. Aguas from who retire workers that also states agreement age can retirement the legal reach they date the of within 120 days contract bargaining collective the under the benefits access to have 2002. July after benefit accrue this to and continue S.A. Manquehue Aguas S.A. and Cordillera Aguas Aguas S.A. and Cordillera Aguas in compensation Seniority amount the Code, except the Labor by S.A. is governed Manquehue 31, 2002 and December to accumulated event in any the indemnity of age or amount wage without any 1 monthly of benefit the termination agreements bargaining collective current by covered workers limit for individual via their extended was whom this benefit to those and for accumulated event in any The amount employment. of contract in line with the changes in quarterly is adjusted date that to bargaining collective The mentioned price index. the consumer Cordillera Aguas from who retire workers that also states agreement after accrue this benefit to S.A. continue Manquehue Aguas S.A. and 2002. December S.A. ESSAL been have or part of who take workers to Compensations the at agreement bargaining collective the current to incorporated actuarial at their calculated are statements the financial of date is In those cases there and death. retirement in the case of only value the Labor of cases, the rules In other six months. limit of a payment compensation to no right have is, they that applicable, Code are 11 months. dismissal, with a limit of in the case of except these against charged personnel to given The monies in advance shall be charged They obligations. current deducting shown funds are in the mentioned for as provided adjusted, in the final adjustment, agreements. Subsidiaries. other in the applicable is not benefit This kind of Seniority benefits in Aguas Andinas S.A. are governed by the the by governed Andinas S.A. are Aguas in benefits Seniority event in any the indemnity of the amount for Code, except Labor 1.45 of benefit 31, 2002 and the termination July to accumulated amount without any resignation, voluntary excluding wages, monthly bargaining collective current to subject workers age limit, for or via extended was whom this benefit and those to agreements event in any The amount employment. of individual contract their Aguas Andinas Aguas S.A. The obligation of seniority benefits that are estimated to accrue to to to accrue estimated are that benefits seniority of The obligation S.A., Cordillera Aguas Andinas S.A., Aguas in who retire employees the actuarial at shown S.A. and Essal S.A., are Manquehue Aguas Actuarial unit method. credit using the projected determined value changes in the on indemnities deriving from gains and losses increases wage mortality, rates, in the turnover changes or estimates in other 19, with IAS in accordance determined are rate discount or which is the Equity, affecting thus directly results, comprehensive earnings. accumulated into then re-classified O. EMPLOYEE BENEFITS BENEFITS EMPLOYEE O. Contingent liabilities are possible obligations arising from past past arising from obligations possible are liabilities Contingent effect equity and associated materialization whose future events, with IFRS, the In accordance probability. be a low to is believed as is any, were there if these concepts; for no provision makes Group in the same regulation. required The provisions are quantified considering the best information information considering the best quantified are The provisions at reviewed and its consequences and is on the matter available the cover used to made are provisions The closing. each accounting full or their recognized, originally were which they for specific risks decrease. or disappear when such risks being required partial revision The Group recognizes a provision when there is a current obligation obligation is a current when there a provision recognizes The Group use to likely is which the Group for events, past from resulting the of estimate which a fair and for the obligation settle to resources can be made. the obligation of amount N. PROVISIONS AND CONTINGENT LIABILITIES LIABILITIES AND CONTINGENT N. PROVISIONS Inversiones Aguas Aguas Metropolitanas Inversiones Earnings Release Annual Report 2017 Annual Report contamination as a result of the operations conducted by Aguas Aguas by conducted the operations of as a result contamination its subsidiaries. Andinas S.A. and Company The cost. at valued are asset, other any like These assets, basis as on a straight-line these items amortize and its subsidiaries the for lives useful of years remaining the estimated of a function items. different FLOWS CASH OF STATEMENT CONSOLIDATED T. during the period, the cash movements record statements Cash flow the direct by determined (VAT), Tax Added Value which include criteria: the following under method and of cash and outflows Inflows Cash and cash equivalents: easily- as being understood are They assets. financial equivalent risk variation value with a low investments short-term liquidated date). investment from 3 months of term unrestricted (maximum business in a regular Common activities activities: Operation as other and its Subsidiaries, as well the Company by operation financing. or been classified as investment not have that activities means of other use by disposal or Acquisition, activities: Investment been included not have that investments and other assets long-term in cash and cash equivalents. amount changes in the produce that Activities Financing activities: part of not are liabilities that and equity the net and composition of activities. the ordinary CONTRACTS CONSTRUCTION U. uses the “percentage-of- the Group contracts, construction For referring and expenses booking revenues for method” completion the under revenues the this method, By being fulfilled. a contract to according incurred costs with the related compared are contract in the amount which results achieved, progress of the degree to the to and earnings attributable expenses revenue, the ordinary of the contract. portion of completed 155 previous month valued at the current tariff, considering for both cases cases both considering for tariff, the current at valued month previous tariff. overconsumption the normal or estimation) (billing or to the corporate varies according and benefits risks of The transfer related services and any of Utilities, the provision Water business. For provision and a monthly consumption actual based on the are charge billing. For on the previous based consumption, unbilled is made for Maipo del Aguas Servicios S.A. and y S.A., Gestión Anam S.A., EcoRiles carried out. based on the work are and the possible S.A., invoicing statement the service termination determining used for Method metering by services is confirmed the sanitation of The provision legislation, with the relevant in accordance the consumption, do so once the services and/or subsidiaries utility non-water whereas been completed. have reports respective as is recorded developers with property agreements Income under each complies with the conditions of it that income provided ordinary the to flow will benefits economic the related that ensure to contract Company. R. EARNINGS PER SHARE the between ratio as the calculated are share Basic earnings per the of Equity Net of the holders to attributable earnings (loss) in common shares of number weighted and the average Controller and 2016. 31, 2017 periods ending December during the circulation the and 2016, 31, 2017 ending December years During the financial diluting effect with a potential has carried out no operation Group to different any are share earnings per diluted supposes that that share. basic earnings per INFORMATION S. ENVIRONMENTAL the used in the business of those constantly are assets Environmental adverse minimize is to main objective Their and subsidiaries. Company of and improvement the protection and ensure impacts environmental future any of elimination or including the reduction the environment, For those cases where the whole meter reading consumption is not is not consumption reading meter the whole those cases where For those incomes of estimation a better the Company, for available the from data billing will be carried out on the basis of pending of For those billing groups that have the information about the about the the information have that those billing groups For the corresponding of the application read, effectively consumption be in order. would tariff The water utilities’ services area is divided into billing groups that that billing groups is divided into services area utilities’ The water This billing. and subsequent readings meter for dates determine the end at This means that month. is carried out in a calendar process billed. not and therefore, consumption, is unread there each month of Income from sales of services is measured at fair value. Billing is Billing is value. fair at services is measured of sales Income from carried out on work or consumption actual carried out on the basis of and rebates, discounts trade returns, net receivable, the consideration and client the to when it is transferred so the income is recorded and costs In addition, the associated probable. is considered recovery estimated. billings can be reliably erroneous for discounts possible Policy for booking ordinary income from sales of services services of sales income from booking ordinary for Policy Income from sales of goods is recognized once the risk and significant and significant once the risk goods is recognized of sales Income from been the goods have of the ownership from resulting advantages The sold. asset the bound to is no longer The Company transferred. to is likely The company measured. income can be reliably of amount and the costs with the sale associated the economic benefits receive measured. can also be reliably in the transaction incurred Policy for recognizing ordinary income from sales of goods goods of sales income from ordinary recognizing for Policy Income arising from any normal operation and other events at the fair the fair at events and other operation normal any Income arising from taking into is recorded receivable or received the payment of value and provided notes, and credit rebates payment, of the terms account reliably. can be measured income of the amount that Policy for accounting for ordinary income. income. ordinary for accounting for Policy Q. ORDINARY INCOME ORDINARY Q. Inversiones Aguas Aguas Metropolitanas Inversiones Earnings Release Annual Report 2017 Annual Report 24 92,410 92,410 -92,434 246,664 246,664 -246,664 -246,664 Increase/ (Decrease) 156 RECLASSIFICATIONS nature by statement Income activities ordinary for Revenues nature by expenses, Other Statement of cash flow of Statement goods and services of the sale from Collections activities operation to related expenses Other Payments to suppliers for the supply of goods and of the supply for suppliers to Payments services W. RECLASSIFICATIONS RECLASSIFICATIONS W. been made as have purposes, certain reclassifications comparison For detail: the following to according 31, 2016, December of Interests paid or accrued on debt used to finance qualified assets are are qualified assets finance used to debt accrued on paid or Interests when the Entity that 23, which states in IAS as stipulated capitalized, should debt on that the interest finance investments, to debt acquires to the expense and incorporated the financial from be deducted such of amount total to the being financed up project construction the to the disbursements to rate the respective applying interests, submission date. statement financial Policy on interest-cost capitalization: capitalization: on interest-cost Policy Loan costs directly attributable to the acquisition, construction or or construction the acquisition, to attributable directly costs Loan qualification their the conditions for meet that assets of production assets. such of the cost part of forming capitalized, are Policy on interest-bearing loans: loans: on interest-bearing Policy V. CAPITALIZED FINANCING COSTS FINANCING COSTS CAPITALIZED V. The Group shows the gross amount due to customers for the work of all of the work for customers due to amount the gross shows The Group exceeds which the partial invoicing for as a liability in progress contracts losses). recognized (less profits plus recognized incurred the costs The Group shows the gross amount due by customers for the work of of work the for customers due by amount the gross shows The Group incurred which the costs for as an asset in progress all the contracts the partial exceed losses) booked (less profits plus recognized and the withholdings customers unpaid by invoicing Partial invoicing. receivable”. accounts other and debtors included in “Trade are Contract costs are recognized when incurred. When the result of a a of When the result when incurred. recognized are costs Contract is contract and the estimated, can be reliably contract construction term the over recognized are revenues contract be profitable, to likely the total exceed to likely are costs When the contract the contract. of as an expense recognized is immediately loss the expected revenues, a construction of result When the year. in the financial incurred are revenues enough, contract reliably be estimated cannot contract are that incurred costs the contract the limit of to only recognized be recovered. to likely Inversiones Aguas Aguas Metropolitanas Inversiones CONSOLIDATED FINANCIAL POSITION STATEMENT
ASSETS 2017 Th$ 2016 Th$
Current assets 150,618,761 182,071,355
Non-current assets 1,646,261,375 1,589,747,781
Total Assets 1,796,880,136 1,691,197,848
LIABILITIES 2017 M$ 2016 M$
Current liabilities 237,111,903 211,931,051
Non-current liabilities 866,468,756 873,005,660
Equity 642,630,776 634,157,180
Minority interest 50,668,701 52,725,245
Total Liabilities and Equity 1,796,880,136 1,691,197,848
COMPREHENSIVE INCOME STATEMENTS
2017 Th$ 2016 Th$
Regular revenues 509,540,577 492,002,980
Operating expenses -285,329,778 -267,499,304
Financial result -25,059,261 -20,643,577
Other not related to the operation -9,328,660 -5,580,178
Income tax -46,340,625 -43,442,462
Minority interest -3,861,973 -4,261,793
Earnings of the financial year 139,620,280 150,575,666
ESTADO DE FLUJO DE EFECTIVO DIRECTO
2017 Th$ 2016 Th$
Net cash flows from operation activities 213,469,168 234,098,851
Net cash flows from investment activities -113,828,958 -93,180,602
Net cash flows from financing activities 111,446,006 101,104,531
Net cash increase (decrease) and equivalent to cash -46,068,103 31,922,914
Initial balance of cash and equivalent to cash 64,876,443 32,953,529
Final balance of cash and equivalent to cash 18,808,340 64,876,443
Inversiones Aguas Metropolitanas 157 Annual Report 2017 Earnings Release - - 213,404 2016 M$ 2016 (945,421) 1,528,392 77,091,911 77,091,911 17,710,264 17,710,264 68,171,861 68,171,861 15,166,065 15,166,065 (1,314,988) (3,807,165) (2,695,516) (8,488,139) 13,163,288 13,163,288 147,807,971 147,807,971 53,655,895 53,655,895 20,750,809 20,750,809 (13,577,658) 162,974,036 162,974,036 162,974,036 162,974,036 (33,044,505) Annual Report 2017 Annual Report Essal S.A. Essal - - 213,404 2017 M$ 2017 (781,033) 8,466,594 12,534,617 12,534,617 17,441,588 17,441,588 18,224,918 18,224,918 12,227,137 12,227,137 12,748,021 12,748,021 76,595,215 76,595,215 31,844,702 31,844,702 (4,169,588) 54,926,019 54,926,019 94,198,693 94,198,693 (2,972,488) (34,775,772) (14,156,895) 156,390,794 156,390,794 188,235,496 188,235,496 229,405 229,405 1,534,721 1,534,721 2016 M$ 2016 (945,654) 15,182,067 15,182,067 (1,305,316) 37,775,038 37,775,038 (6,450,011) 6,678,406 6,678,406 20,716,884 20,716,884 68,171,860 68,171,860 (2,695,516) 15,445,568 68,314,285 (8,444,542) 53,655,895 53,655,895 (3,829,202) (13,577,658) 174,524,684 174,524,684 (33,057,106) 189,706,751 189,706,751 189,706,751 189,706,751 Iberaguas Ltda. y Filial y Ltda. Iberaguas 229,405 229,405 2017 M$ 2017 (781,254) 7,645,458 7,645,458 12,518,616 12,518,616 6,211,069 6,211,069 12,748,021 12,748,021 37,531,682 37,531,682 19,030,053 19,030,053 15,395,072 15,395,072 (5,991,297) 67,826,762 67,826,762 31,844,702 31,844,702 54,926,019 54,926,019 (2,972,488) (4,188,086) 94,198,693 94,198,693 183,107,507 183,107,507 (14,156,895) (34,781,825) 214,952,209 214,952,209 - - (64,831) 2016 M$ 2016 3,274,279 3,274,279 5,613,526 5,613,526 1,370,440 1,370,440 2,347,131 2,347,131 7,697,070 (404,901) 1,305,933 (680,928) 4,859,500 4,859,500 (8,952,312) 11,488,105 11,488,105 (1,968,346) 23,831,041 23,831,041 (7,990,314) 53,268,018 53,268,018 79,936,629 79,936,629 84,796,129 84,796,129 84,796,129 84,796,129 - - Aguas Manquehue S.A Manquehue Aguas 522,049 522,049 628,455 (677,478) 2017 M$ 2017 (63,052) (912,954) 1,305,933 3,431,084 3,431,084 (243,448) (4,630,611) 3,193,001 3,193,001 4,698,352 4,698,352 24,353,717 24,353,717 15,292,813 53,878,217 53,878,217 12,401,009 12,401,009 (7,988,554) 93,524,747 93,524,747 93,524,747 93,524,747 88,826,395 158 (10) 229 2016 M$ 2016 9,046,129 9,046,129 (919,553) 13,091,106 13,091,106 52,771,971 52,771,971 22,689,705 22,689,705 25,898,427 25,898,427 (9,882,384) 17,600,783 17,600,783 63,521,557 (7,921,350) 34,944,556 48,898,587 48,898,587 73,086,242 73,086,242 212,612,997 212,612,997 32,025,086 32,025,086 (40,256,341) 289,572,852 289,572,852 338,471,439 338,471,439 338,471,439 338,471,439 (14) 232 976,151 976,151 616,105 616,105 2017 M$ 2017 (818,611) Aguas Cordillera S.A. y Filiales y S.A. Cordillera Aguas 18,111,056 18,111,056 10,620,784 10,620,784 43,711,165 43,711,165 74,137,734 74,137,734 (9,981,002) 34,944,556 18,890,051 18,890,051 (34,608,187) (5,404,534) 63,924,489 63,924,489 (33,968,405) (39,427,384) 303,296,984 203,558,909 321,408,040 321,408,040 321,408,040 321,408,040 2016 M$ 2016 31,922,914 32,953,529 101,104,531 101,104,531 (4,261,793) 52,725,245 52,725,245 64,876,443 64,876,443 (5,580,178) 211,931,051 211,931,051 234,098,851 234,098,851 182,071,355 182,071,355 (93,180,602) 634,157,180 634,157,180 (20,643,577) (43,442,462) 150,575,666 150,575,666 1,589,747,781 1,589,747,781 873,005,660 873,005,660 492,002,980 492,002,980 1,771,819,136 1,771,819,136 1,771,819,136 1,771,819,136 (267,499,304) Aguas Andinas S.A. y Filiales y Andinas S.A. Aguas 2017 M$ 2017 64,876,443 64,876,443 18,808,340 111,446,006 111,446,006 213,469,168 213,469,168 (3,861,973) 50,668,701 50,668,701 237,111,903 237,111,903 (46,068,103) 150,618,761 150,618,761 (9,328,660) (113,828,958) (25,059,261) 642,630,776 642,630,776 509,540,577 509,540,577 866,468,756 866,468,756 (46,340,625) 139,620,280 139,620,280 (285,329,778) 1,646,261,375 1,646,261,375 1,796,880,136 1,796,880,136 1,796,880,136 1,796,880,136 Financial result Financial result Operating cost cost Operating Total Assets Assets Total Minority Interests Interests Minority cash and Final balance of cash to equivalent CASH FLOW STATEMENT STATEMENT FLOW CASH from cash flows Net activities operation Earnings attributable to to Earnings attributable the controller of owners INCOME STATEMENTS INCOME STATEMENTS revenues Regular Total Liabilities and Equity Liabilities and Equity Total LIABILITIES liabilities Current Non-current assets assets Non-current Net cash flows from from cash flows Net activities investment Equity Equity the to related not Others operation cash and Initial balance of cash to equivalent Non-current liabilities Non-current from cash flows Net financing activities (decrease) cash increase Net cash to and equivalent ASSETS Income tax Minority Interest Interest Minority Current assets assets Current FINANCIAL POSITION STATEMENTS FINANCIAL 31 2017 december As at Inversiones Aguas Aguas Metropolitanas Inversiones Earnings Release 8,750 8,750 4,239 67,098 67,098 (62,859) 698,742 698,742 2,029,111 2,029,111 (115,362) (541,891) 2016 M$ 2016 (186,434) 7,159,549 7,159,549 1,537,032 2,956,521 5,354,352 4,426,942 4,426,942 (6,167,761) 7,383,463 7,383,463 7,383,463 7,383,463 (1,058,000) Annual Report 2017 Annual Report Análisis Ambientales Análisis Ambientales S.A 4,357 4,238 35,835 40,073 40,073 (62,637) 2017 M$ 2017 (372,811) (300,158) 2,102,735 2,102,735 4,752,102 4,752,102 1,163,257 1,163,257 1,700,455 1,700,455 4,614,248 4,614,248 1,838,309 8,301,209 6,452,557 6,452,557 (1,766,742) (6,706,861) 14,446 40,043 40,043 502,671 502,671 961,747 961,747 459,076 459,076 907,094 907,094 553,002 553,002 2016 M$ 2016 (104,489) 5,768,832 5,768,832 1,063,565 1,063,565 (500,000) 8,569,328 8,569,328 2,945,840 3,690,043 3,690,043 6,675,926 6,675,926 6,675,926 6,675,926 (2,295,062) (1,253,090) (8,094,804) Gestión y Servicios S.A y Gestión 41,863 41,863 30,533 30,533 961,747 961,747 780,187 780,187 339,270 339,270 2017 M$ 2017 614,644 614,644 403,826 708,049 708,049 (189,894) (253,698) 3,687,532 3,687,532 7,106,015 7,106,015 7,106,015 7,106,015 2,062,476 2,062,476 3,376,620 3,376,620 6,325,828 8,363,693 8,363,693 (7,928,958) (2,720,000) - - - 82,367 99,426 99,426 95,703 95,703 477,419 477,419 172,081 172,081 153,645 153,645 153,645 153,645 (35,653) (731,324) 2016 M$ 2016 (441,251) (932,375) 1,028,078 1,028,078 (636,020) (450,000) 8,826,317 8,826,317 8,825,195 8,643,402 8,643,402 8,348,898 159 Aguas del Maipo S.A del Maipo Aguas - - 4,857 13,417 13,417 95,703 95,703 109,473 109,473 156,080 156,080 (82,286) 2017 M$ 2017 669,743 669,743 604,804 (170,358) 9,112,222 9,112,222 1,335,159 (655,995) 7,200,918 7,200,918 2,797,500 2,797,500 2,066,320 2,066,320 16,422,613 16,422,613 14,356,294 16,422,614 16,422,614 (3,484,590) - 7,015 7,015 42,883 42,883 (94,233) 425,004 425,004 (101,739) (531,150) 2016 M$ 2016 5,103,621 5,103,621 1,467,751 1,467,751 1,561,984 1,457,506 1,457,506 3,148,160 3,148,160 1,722,640 1,722,640 2,380,465 2,380,465 5,528,625 5,528,625 5,528,625 5,528,625 12,726,542 12,726,542 (1,450,000) (10,522,650) Ecoriles S.A Ecoriles - 4,895 14,105 14,105 501,160 501,160 383,121 2017 M$ 2017 2,101,177 2,101,177 (551,107) 1,467,751 1,467,751 3,118,551 (416,297) 4,718,568 4,718,568 5,219,728 5,219,728 5,219,728 5,219,728 1,680,341 1,680,341 1,054,308 1,054,308 (1,722,641) 13,389,212 13,389,212 (11,176,764) (1,084,630) Financial result Financial result CASH FLOW STATEMENT STATEMENT FLOW CASH activities operation from cash flows Net Non-current liabilities Non-current cost Operating the operation to related not Others the controller of owners to Earnings attributable Total Liabilities and Equity Liabilities and Equity Total INCOME STATEMENTS revenues Regular LIABILITIES liabilities Current Non-current assets assets Non-current Income tax Interest Minority Minority Interests Interests Minority Equity Equity ASSETS Net cash flows from financing activities financing from cash flows Net Total Assets Assets Total activities investment from cash flows Net Current assets assets Current cash to and equivalent (decrease) cash increase Net Initial balance of cash and equivalent to cash to cash and equivalent Initial balance of Final balance of cash and equivalent to cash to cash and equivalent Final balance of FINANCIAL POSITION STATEMENTS FINANCIAL 31 2017 december As at Inversiones Aguas Aguas Metropolitanas Inversiones