Santiago Stock Exchange ENELCHILE New York Stock Exchange ENIC Enel Chile S.A. was initially incorporated as Enersis Chile S.A., on March 1, 2016. On October 18, of the same year, the company changed its name to Enel Chile S.A. As of December 31, 2019, the company´s total subscribed, and paid capital amounted to Ch$ 3,882,103,470 represented by 69,166,557,220 shares. These shares are traded on the Santiago Stock Exchange and, as American Depositary Shares (ADS) on the New York Stock Exchange. The Company’s business is to exploit, develop, operate, generate, distribute, transform and/or sell energy, in any form and nature, directly or through other companies. Total assets as of December 31, 2019, amounted to ThCh$ 7,857,988,164. Enel Chile controls and manages a group of companies that operate in the Chilean electricity market. In 2019, net income attributable to the controlling sharehold- er reached ThCh$ 296,153,605 and operating income was ThCh$ 526,054,835. At year-end 2019, a total 2,148 people were directly employed by its subsidiaries in Chile. ENEL CHILE ANNUAL REPORT 2019 “Year 2020 will have new challenges for the Company, that we will enthusiastically tackle, with responsibility and transparency” 2 Letter from the Chairman Dear shareholders, been able to grasp entirely. As a country, we have a new challenge and I hope that everyone- politicians, executives, I hereby present to you the Annual Report and Financial businessmen, social leaders, and citizens- will have the Statements of Enel Chile for the year 2019. Here, you will necessary wisdom, each according to their own realities, to find a description of what motivates us- working hard to help dialogue and reach agreements and understandings that will people and companies prosper and open the energy sector to allow Chile to become a better country for everyone. new technologies- and the main developments made in Enel Generación Chile, Enel Green Power Chile (EGP Chile), Enel Aside from the peaceful protests, there have also been Distribución Chile, and Enel X, the companies that make up episodes of unprecedented violence, unacceptable for a Enel Chile. state of democracy. Chile does not deserve this. This violence directly affected and us put a strain on our team. On the Before going into detail regarding the Company´s evening of October 18, after a march that was surpassed by accomplishments, I would like to share a reflection with all of turmoil and chaos, hooded protesters burned the emergency you. 2019 was a particularly challenging year, not just for Chile, staircase of our corporate building. Luckily, the people who but also for our Company. As a country, we lived through a were working there at that time were not injured. period of protests and social movements in which thousands of fellow citizens raised their voices to demand profound We composed ourselves and carried on with job, with teams changes in the way we organize our society. distributed throughout different parts of the city. We continued to work in order to ensure our service to customers. I would Those of us who have payed close attention to this movement, like to thank each and every one of our collaborators for have heard the voices of adults and youngsters aiming to their commitment. They have made their strongest efforts to advance towards a more equal, fair, and dignified society. We deliver electricity to every single family in the city. We know stand before a movement to which we cannot be indifferent. that we provide a fundamental public service for all homes, On the contrary, it invites us to reflect. Over the past few schools, businesses and industries, which is why we have not months, the realities and problems of many Chileans have failed to generate and distribute the energy that supplies their been exposed; problems we were unaware of, or we hadn’t daily operations. 1. Letter from the Chairman 3 I would like to thank the members of the Board, for the trust Additionally, Geotérmica del Norte, a joint venture undertaken they have placed in us to manage the Company and for their by Enel Green Power and ENAP, began the construction of a support in all the endeavors we have set forth. third 33 MW electricity generation unit in the Cerro Pabellón geothermal facility. In terms of our performance in 2019, financial results were positive. The Company´s EBIDTA increased 18.2% when The energy we generated during 2019 reached a total compared to 2018, totaling Ch$ 1,053,492 million, attributable 21,041 GWh, representing a 5% increase when compared to to an improvement in our operating business characterized by the previous period. This is primarily a consequence of greater growth in renewable and nonrenewable electricity generation, wind and solar electricity generation, combined with the and an increase in electricity distribution, mainly to the greater dispatch of traditional, nonrenewable energy sources. residential sector. The market is welcoming our clean energy supply. The For Enel Generación Chile, 2019 was a year marked by contracts signed with large customers to supply 7 TWh per sustainability, a fundamental challenge for Enel, and a year of 100% renewable energy in 10 to 15-year periods, to contribution to the country’s development. We signed the begin in 2021 is proof of such interest. National Decarbonization Plan that aims towards progressively reducing the coal fueled generation units. We fulfilled this During 2019, Enel Distribución Chile moved forward in terms year’s commitment on December 31 with the early retirement of improving the quality of our service, focusing on the of our Tarapacá Plant, which represents 25% of our total coal installation of telecontrol units, reaching 2,148 units installed fueled generation capacity. this far. We worked on implementing different technologies to monitor our networks, such as aerial inspections, which The year 2019 was also a distinct year due to the development are focused on reducing the amount of time spent on various of renewable energies. In August, Enel Green Power Chile, tasks, and more precisely detecting anomalies in higher Enel Chile’s subsidiary for renewable energies, began the density areas. Energy losses in 2019 decreased from 5.02% construction of a new photovoltaic solar park, Campos de Sol. to an unprecedented 4.99%, thanks to the implementation of It is currently the largest solar power plant under construction a predictive analysis model. in Chile, with an installed capacity of nearly 382 MW and is located about 60 km northeast of Copiapó, in the Atacama In terms of Enel X, alongside Metbus and BYD, we inaugurated Region. the first electric corridor in Latin America, a sustainable transportation system with 285 buses that are 100% 4 Enel Chile Annual Report 2019 electricity powered. This makes Chile the region’s leader Additionally, we once again acknowledged women´s in electric mobility, and Santiago the city with the second contribution to our country by granting the Woman’s Energy greatest proportion of electric public transportation vehicles Award to 12 extraordinary Chilean women in diverse areas in the world. such as arts, public service and education. Our solid, responsible investment practices in terms of social The year 2020 presents new challenges, some related to the and environmental matters allowed us to maintain our position COVID-19 emergency that today reaches unknown limits, in the FTSE4 Good Index Series in the Emerging Markets which the Company will face with enthusiasm, responsibility Index and Latin America Index categories, which promote and transparency, prioritizing the safety and health of our ethical investments in stock markets. people and building on our digitalization strategy. Enel Chile, Enel Generación Chile, Enel Distribución Chile, We do not forget that our role is to satisfy the needs of Enel Green Power Chile and its subsidiaries received the our country and its population. To achieve this goal, we will Criminal Risk Prevention Model (MPRP in its Spanish acronym) continue to work on improving our service, taking electricity certification. Also, Enel Chile and Enel Generación Chile to new areas, digitalizing the distribution network, promoting obtained the ISO37001 certification, an international standard renewable energies and taking the lead in electric mobility. that recognizes the existence of an effective antibribery management system. Both certifications reflect the ethics Sincerely, and transparency in our daily endeavors and engage us to move forward. We have continued to support children through sports with the Enel Cup, promoting a healthy lifestyle, and values such as integration and self-improvement. In terms of culture, we loaned the National Library nearly 20,000 historic photographs for an unprecedented exhibition of images that capture when Herman Chadwick Piñera electricity was introduced in Santiago. We inaugurated Parque Chairman of Enel Chile La Isla-Salto La Olla, a six hectares pristine forest park in Pilmaiquén that preserves the biodiversity of flora and fauna, and the Mapuche culture. 1. Letter from the Chairman 5 6 Enel Chile Annual Report 2019 CONTENTS Enel Chile 2019 CHAPTER PAGE 01. Letter from the Chairman 2 02. Open Power 8 03. Milestones 2019 10 04. Main financial and operational metrics 13 05. Identification of the Company 17 06. Ownership structure 21 0 7. Management 27 08. People and organization 41 09. Stock market transactions 51 10. Investor relations 57 11. Dividends 61 12. Investment and financing policy 65 13. History of the Company 69 14. Business of the Company 73 15. Strategy, investments and financial activities 85 16. Industry regulation and electricity system operation 99 17. Risk factors 109 18. Ethics and transparency 129 19. Sustainability 135 20. Environment 145 21. Innovation culture in the Company 151 22.