Engie Energia Chile S A : 2021 Integrated Report

2021 INTEGRATED REPORT

2 ENGIE ENERGIA CHILE 2021 INTEGRATED REPORT

NAME:

ENGIE ENERGÍA CHILE S.A.

ADDRESS:

ISIDORA GOYENECHEA 2800, 16TH FLOOR, LAS CONDES, SANTIAGO, CHILE.

TAXPAYER IDENTIFICATION NUMBER: 88.006.900-4

TYPE OF ENTITY:

OPEN CORPORATION.

SECURITIES REGISTRATION NUMBER: 273 OF JULY 23, 1985.

EXTERNAL AUDITORS:

EY SERVICIOS PROFESIONALES DE

AUDITORÍA Y ASESORÍAS SpA.

EXTERNAL LEGAL COUNSEL:

PRIETO ABOGADOS SpA.

OFFICES:

MAIN OFFICE:

ISIDORA GOYENECHEA 2800, 16TH FLOOR, LAS CONDES, SANTIAGO, CHILE.

ANTOFAGASTA:

RÓMULO PEÑA 4008, ANTOFAGASTA, CHILE. PHONE: [phone]

FAX: [phone]

MEJILLONES THERMAL POWER COMPLEX:: CAMINO A CHACAYA 3910, MEJILLONES, CHILE. PHONE: [phone]

FAX: [phone]

TOCOPILLA THERMAL POWER COMPLEX: AVDA. DR. LEONARDO GUZMÁN 0780, TOCOPILLA, CHILE.

PHONE: [phone]

ARICA DIESEL-FIRED PLANT:

AVDA. SANTA MARÍA 2251, ARICA, CHILE. PHONE: [phone]

WEBSITE:

www.engie-energia.cl

INVESTOR RELATIONS::

MARCELA MUÑOZ LAGOS [e-mail] [e-mail]

COMMUNITIES AND SUSTAINABILITY [e-mail]

WE ARE ENGIE ENERGÍA CHILE 3

ABOUT OUR INTEGRATED REPORT

In the last six years, we have issued this formal document to share the progress in our growth and value creation strategy as well as the main aspects of our Environmental, Social and Governance (ESG) management.

The contents addressed were selected in consideration of the opinion of our stakeholders gathered from our materiality survey. The contents also meet the regulatory requirements of the Financial Market Commission (CMF) for annual reports and are in line with the Standards of the Global Reporting Initiative (GRI).

The report was prepared with the active participation of the Company's Corporate Division responsible for providing and validating the contents.

2016

2017

2018

20192020

4 ENGIE ENERGIA CHILE 2021 INTEGRATED REPORT

2021: A

KEY TO

Frank Demaille • Chairman of the Board. ENGIE Energía Chile

There can be no doubt that 2021 one of the most challenging years in recent decades. We issued a new strategic plan that aims to accelerate our transition toward clean energy and project our business toward the future. Our decision entailed a significant change in the direction of the business that will contribute to our sustainability, to the sustainability of our internal and external stakeholders, and to the mitigation of the impacts of climate change.

We made this announcement in the midst of a greatly complicated environment impacted by one of the severest droughts in the last 60 years that was determining to the decline in hydroelectric generation and its contribution to the system. The scenario became even more complex as a result of the increase in the prices of fuels to historic levels and the restrictions imposed by the COVID-19 pandemic that impacted maintenance plans and the construction of our projects, among other aspects.

We will discuss these and other topics in our sixth Integrated Report. Below the Chairman of the Board and the Chief Executive Officer will share their vision of the main milestones in 2021.

What aspects of the management of our company in the fiscal year can be highlighted?

Frank Demaille. The ENGIE Group is working on moving toward "Net Zero Carbon" by 2045. With that goal in mind, we restructured our organization into the following areas of business: Thermal, Renewable, Systems and Energy Service Infrastructure and Back-Office Areas that are transversal to all areas of the business.

Our Chile Transformation Plan is also one of the most important milestones in the year. We were pioneers in announcing in 2018 that coal no longer formed a part of our growth plan. Today we are reasserting our intent to continue on that path of leaving coal-fired generation behind and investing in clean energy technologies or technologies with a low level of CO2 emissions. We will have a robust investment plan to achieve our goals.

WE ARE ENGIE ENERGÍA CHILE 5

YEAR

TRANSFORMATION

Axel Levêque • Chief Executive Officer. ENGIE Energía Chile

Vital in this change have been our efforts at innovation and digitalization, which have contributed to a continuous improvement of our processes and to the ability to adapt to the new setting.

Axel Levêque. First, I want to highlight that we had an accident rate of 1.07 in our operating activities in 2021, a figure extremely low for the industry. The results of the energy industry were also heavily impacted by a tough 2021. Here I want to emphasize the resilience and ability of our teams to respond. Our units and teams rose to the challenges imposed by COVID-19 despite having had to confront some delays in the construction of our renewable energy projects in the north of the country. In a highly complex setting, we were able to generate 700 GWh of energy more than in 2020, a milestone of which we feel proud and thankful because it needed the commitment of all teams involved, especially the operations and implementation areas.

Another great milestone is that we connected our Calama Wind Farm, with an installed capacity of 151 MW, to the power grid in October and recently, in February 2022, we added our Tamaya Solar Farm of 114 MWac. Soon the Coya and Capricornio Photovoltaic Farms will join them that combined, will generate 268 MWac.

In the Transmission business, we finalized four projects of great relevance and connected them to the power grid. In an increasingly more competitive business environment, we were also awarded the tender to build the New La Ligua Substation.

In 2021, we received a loan of US$125 million from IDB INVEST for the construction of the Calama Wind Farm. This transaction, unusual for IDB INVEST, is the first world monetization of emission reductions in the energy sector. It was an arduous process that was recognized by one of the five global awards given by the ENGIE Group in the Sustainable Finance category of its Finance Awards.

At the close of the 2021 fiscal year, our energy sales revenue totaled MUS$1.308, 12% higher than the previous year, while our EBIDTA was MUS$315, 31% lower compared to the same period.