January 26, 2022

ENGIE ENERGÍA CHILE REPORTED EBITDA OF US$315 MILLION AND NET INCOME OF US$47 MILLION IN 2021.

EBITDA AMOUNTED TO US$71 MILLION IN THE FOURTH QUARTER OF 2021, A 39% DECREASE COMPARED TO THE FOURTH QUARTER OF 2020. THE EBITDA DROP IS PRIMARILY EXPLAINED BY THE INCREASE IN BOTH GENERATION COSTS AND SPOT PRICES, WHICH HAVE BEEN IMPACTED BY THE SEVERE DROUGHT IN THE COUNTRY AND THE STEEP RISE IN FUEL PRICES WORLDWIDE.

  • Operating revenues amounted to US$1,479 million in 2021, a 9% increase compared to 2020, mainly due to the demand recovery in the regulated and unregulated segments and the increase in average realized energy prices explained by higher CPI and fuel prices.
  • EBITDA amounted to US$315 million in 2021, a 31% decrease compared to 2020, mainly due to an increase in average energy supply costs and higher spot prices. This was due to weak hydro conditions, lower gas availability, generally lower performance of coal plants in the system, and rising coal and gas prices.
  • Net Income reached US$47 million in 2021, a 71% decrease compared to 2020. This was basically due to the decrease in operating results and one-time financial expenses related to the sale of accounts receivable born from the application of the temporary price stabilization mechanism to regulated clients pursuant to Law #21,185 dated November 2019 ("PEC").

Financial Highlights (in US$ millions)

4Q20

4Q21

Var %

12M20

12M21

Var%

Total operating revenues

355.7

392.1

10%

1,351.7

1,478.6

9%

Operating income

72.0

19.7

-73%

275.4

128.7

-53%

EBITDA

117.5

71.3

-39%

455.3

314.5

-31%

EBITDA margin

33.0%

18.2%

(14,8pp)

33.7%

21.3%

(12,4pp)

Total non-operating results

(24.1)

(5.8)

n.a

(71.7)

(67.9)

-5%

Net income after tax

40.3

8.7

-78%

163.5

47.4

-71%

Net income attributed to controlling shareholders

40.3

8.7

-78%

163.5

47.4

-71%

Earnings per share (US$/share)

0.054

0.008

0.155

0.045

Total energy sales (GWh)

2,881

2,923

1%

11,408

11,715

3%

Total net generation (GWh)

1,133

1,493

32%

6,438

7,746

20%

Energy purchases on the spot market (GWh)

1,667

1,228

-26%

4,645

3,311

-29%

Energy purchases - back up (GWh)

127

265

109%

503

639

27%

ENGIE ENERGÍA CHILE S.A. ("ECL") is engaged in the generation, transmission and supply of electricity and the transportation of natural gas in Chile. ECL is the fourth largest electricity generation company in Chile and one of the largest electricity generation companies in the northern segment of the SEN national grid (formerly known as SING). As of December 31, 2021, ECL accounted for 8% of the SEN's installed capacity. ECL primarily supplies electricity to large mining and industrial customers, and it also supplies electricity to distribution companies throughout Chile. ECL is currently 59.99% indirectly owned by the French company, ENGIE LATAM. The remaining 40.01% of ECL's shares are publicly traded on the Santiago stock exchange. For more information, please refer to www.engie-energia.cl.

Contents

HIGHLIGHTS: ..............................................................................................................................................................

3

RECENT EVENTS .........................................................................................................................................

3

4Q21 ..........................................................................................................................................................

3

3Q21 ..........................................................................................................................................................

4

2Q21 ..........................................................................................................................................................

4

1Q21 ..........................................................................................................................................................

5

INDUSTRY OVERVIEW.............................................................................................................................................

6

Marginal Costs ................................................................................................................................................

7

Fuel prices .......................................................................................................................................................

8

Generation .......................................................................................................................................................

9

Management's Discussion and Analysis of Financial Results.....................................................................................

10

4Q 2021 compared to 3Q 2021 and 4Q 2020 ................................................................................................

10

Operating Revenues ........................................................................................................................

10

Operating Costs...............................................................................................................................

11

Electricity Margin ...........................................................................................................................

12

Operating Results ............................................................................................................................

13

Financial Results .............................................................................................................................

13

2021 compared to 2020 .................................................................................................................................

14

Operating Revenues ........................................................................................................................

14

Operating Costs...............................................................................................................................

15

Operating Results ............................................................................................................................

16

Financial Results .............................................................................................................................

17

Liquidity and Capital Resources ...................................................................................................................

18

Cash Flow from Operating Activities .............................................................................................

18

Cash Flow Used in Investing Activities ..........................................................................................

18

Cash Flow from Financing Activities .............................................................................................

19

Contractual Obligations ..................................................................................................................

19

Dividend Policy.............................................................................................................................................

21

Risk management policy ...............................................................................................................................

22

Hedging Policy ..............................................................................................................................................

22

Business Risk and Commodity Hedging.........................................................................................

22

Currency Hedging ...........................................................................................................................

23

Interest Rate Hedging......................................................................................................................

24

Credit Risk ......................................................................................................................................

24

OWNERSHIP STRUCTURE AS OF DECEMBER 31, 2021 ....................................................................................

25

APPENDIX 1 ..............................................................................................................................................................

26

PHYSICAL DATA AND SUMMARIZED QUARTERLY FINANCIAL STATEMENTS ........................

26

Physical Sales..................................................................................................................................

26

Quarterly Income Statement ...........................................................................................................

27

Quarterly Balance Sheet..................................................................................................................

28

Main Balance Sheet Variations .......................................................................................................

28

APPENDIX 2 ..............................................................................................................................................................

30

Financial information ......................................................................................................................

30

Financial Ratios ..............................................................................................................................

30

CONFERENCE CALL 2021.......................................................................................................................................

31

2

HIGHLIGHTS:

COVID-19: The Corona virus, or COVID-19, was first detected in Chile on March 3, 2020, and as of January 25, 2022, 2,001,346 cases have been confirmed and 39,543 deaths have been reported. A constitutional state of catastrophe, was enacted on March 18, 2020, and was not lifted until September 30, 2021, given the progress in vaccination and reduction of contagion and mortality rates. In mid-January 2022, the government remains under alert given the growing number of the Omicron variant cases. The COVID-19 pandemic is deemed to be the worst sanitary and economic crisis in recent times. The COVID-19 pandemic has posed several challenges forcing us to adapt ourselves and to respond quickly along three lines of action: first, ensuring the safety and wellbeing of our teams; second, ensuring our company's operational continuity, which is essential for the continued electricity supply in our country; and, finally, coordinating ourselves as best as possible with our stakeholders including our customers, suppliers, shareholders and communities to keep an open, direct and collaborative dialogue. Since the beginning of this crisis, we established a crisis committee and have implemented contingency plans, adopting sanitary measures in our sites as necessary to comply with the authority's instructions. Similarly, we have monitored the situation and actions taken by our suppliers and contractors, asking them to comply with safety standards with their own staff. Beginning January 2022, the company adopted a hybrid approach, with a mix of in-person work at company facilities and home office, which is permanently adapted to the government's prevailing rules at any point in time. The government has implemented the "Plan Paso a Paso", a step-by-step plan that considers five scenarios from a full lockdown to an advanced opening, each with specific restrictions and obligations. The advance or retrocession from one to another scenario is subject to epidemiologic indicators, sanitary network availability and traceability. Chile has implemented a widely recognized vaccination process, reporting over 16 million people vaccinated as of January 25,2022.

RECENT EVENTS

4Q21

  • Feller Rate national-scalerating: On December 28, 2021, Feller Rate ratified ENGIE Energía Chile's AA- solvency rating and changed the outlook to Stable from Positive due to the challenges posed by the acceleration and correct execution of the company's investment plan to reconvert its asset generation base.
  • 151 MW Calama wind farm: The Calama wind farm, which began injecting energy to the SEN grid in July 2021, was officially declared under commercial operation by the system coordinator (CEN) on October 27, 2021. This project forms part of our ambitious transformation plan, which considers 2GW of renewable generation assets to achieve our zero-carbon goals. The Calama wind farm has 36 aerogenerators and total installed capacity of 151.2 MW.
  • Deferral of U14 and U15 disconnection: The National Energy Commission (CNE), per Resolution #496 dated November 22, 2021, asked the company to postpone the disconnection of the coal-based units 14 and 15 in Tocopilla from the initially authorized date of December 31, 2021, to a date falling after June 30, 2022, for system security reasons. The CNE issued Resolution #496 in response to a request by the system Coordinator, who considered that, given the prolonged drought in the country and consequential reduction in hydraulic generation, the disconnection of Units 14 and 15, with aggregate gross capacity of 268 MW, could put the country's power supply at risk.
  • HVDC Kimal-LoAguirre transmission auction: The right to develop, build and operate the HVDC, 1,500-kilometer long Kimal-Lo Aguirre transmission project was finally awarded to the Yallique Consortium formed by ISA Inversiones Chile SpA, Transelec Holdings Rentas Limitadas and China Southern Power Grid International (HK) Co. Limited. The Yallique consortium's proposal considers an annual tariff of US$116.3 million for this high-voltage direct current project running from the Antofagasta region in the north of Chile to the Santiago metropolitan region, with bipolar technology, dedicated metallic return, and 2 AC/DC converting substations. This project represents a strategic development to transport low-cost energy produced in the north of the country, and it is expected to be completed by 2028.

3

3Q21

  • Provisional dividend: On July 27, 2021, the company's Board of Directors approved the distribution of a provisional dividend on account of 2021's net income in the amount of US$41.5 million, equivalent to US$0.0393996153 per share, which was paid to the company's shareholders on August 26, 2021.
  • IDB Invest financing: On August 27, 2021, the company drew the US$125 million financing signed with IDB Invest on December 23, 2020, to finance the construction of the Calama wind farm. The loan structure seeks to accelerate the decarbonization of the company's energy matrix.
  • 2021/01 power supply auction for regulated clients: In September 2021, the National Energy Commission conducted a power supply auction for regulated clients, under which it awarded 2,310 GWh/yr at a record low average price of US$23.78/MWh, considered a milestone since the public auction scheme to ensure long-termpower supply to distribution companies was enacted in 2005.
  • Transmission works auction: On September 21, 2021, the Coordinator published the results of a transmission auction by which ENGIE was awarded the construction of the La Ligua substation, which will represent an estimated investment of US$19 million.

2Q21

  • Accounts receivable monetization: On June 30, 2021, ENGIE Energía Chile sold to Chile Electricity PEC SpA the third group of accounts receivable from distribution companies born from the application of the electricity price stabilization mechanism enacted in November 2019. Eólica Monte Redondo completed the sale on July 5. Chile Electricity PEC raised the financing to buy receivables from four groups of generation companies through a US$419 million 4a2 delayed draw private placement with the participation of Allianz, IDB Invest and Goldman Sachs. During the second and third quarters of 2021, ENGIE and EMR sold accounts receivable with face value of US$28.8 million. They received US$20.8 million in cash proceeds and reported US$8 million in financial expenses.
  • Fitch rating confirmation: On June 3, 2021, Fitch Ratings affirmed EECL's long-term foreign and local currency issuer default ratings at BBB+, and long-term national scale rating at AA(cl). Fitch also affirmed the company's US$850 million outstanding unsecured notes at BBB+ and its national equity rating at 'Primera Clase Nivel 2 (cl)'. The rating outlook is stable. EECL's ratings reflect the company's strong credit profile based on its improved capital structure, with expected leverage between 2.0x and 2.5x during 2021-2023, combined with a strong 100% contracted position until 2028 with a contracted average life of its PPAs of 11 years. The stable outlook is driven by Fitch's expectations that Engie will maintain adequate liquidity levels in the medium term, supported by strong and predictable cash flow.
  • Annual Ordinary Shareholders' Meeting: On April 27, 2021, the Company's shareholders agreed the following:
    • Definitive Dividends: To pay a final dividend equivalent to US$51,055,643.26, or US$0,0484716314 per share, which together with the US$66.7 million provisional dividend paid on November 30, 2020, accounted for approximately 72% of 2020 net income. The final dividend was paid on May 20, 2021, in Chilean pesos at the dollar-equivalent observed rate published in the Official Gazette on May 17, to shareholders listed in the company's Shareholder Registry five business days before the dividend payment date.
    • Auditors: To appoint EY Servicios Profesionales de Auditoría y Asesorías SpA as the Company's external auditors.
    • Local Rating Agencies: To confirm "Feller Rate Clasificadora de Riesgo" and "Fitch Chile Clasificadora de Riesgo Ltda." as the agencies that will rate the company's shares according to the national rating scale.

4

1Q21

  • Price stabilization fund: On March 11, 2020, the National Energy Commission ("CNE") published Exempt Resolution #72 setting the rules for the implementation of the temporary price stabilization mechanism for clients subject to regulated tariffs, as established in Law #21,185 dated November 2, 2019. This price stabilization mechanism froze electricity tariffs at the levels prevailing in the first half of 2019 until year-end 2027, subject to certain adjustments, from time to time, as provided by the law. At the same time, the tariffs charged by generation companies to distribution companies continue to follow the indexation formula set in the prevailing contracts among them. The mechanism has therefore produced a differential between the tariffs that generation companies are entitled to charge according to the terms of their contracts with distribution companies and the tariffs actually collected from regulated end-consumers. As a result of this price differential, generation companies have begun to build up an account receivable from distribution companies, which taken as a whole, gives birth to the so-called price stabilization fund. According to Law #21,185 this fund may increase until the first to occur between July 2023 or until it reaches a global amount of US$1,350 million. The authority expects that once lower-priced power supply agreements awarded in more recent auctions become effective, the average price of the contracts between generation and distribution companies will begin to decrease gradually starting 2021. At some point contract prices will fall below the stabilized price that will remain unchanged until December 31, 2027, subject to the adjustments defined by the law. When average contract tariffs fall below the stabilized price, distribution companies will begin repaying the accounts with generation companies that form part of the stabilization fund. As of December 31, 2021, EECL reported approximately US$90.4 million in accounts receivable related to the price stabilization mechanism, after selling accounts receivable with nominal total amount of US$167.3 million between February and July 2021, as explained below.
    • Monetization of accounts receivable stemming from Tariff Stabilization Law: On January 20, 2021, Engie Energía Chile S.A. ("EECL") and its subsidiary, Eólica Monte Redondo SpA
      ("EMR") reached an agreement with Goldman Sachs & Co. LLC and Goldman Sachs Lending Partners LLC ("GS") on the terms and conditions for a financing operation specifically related to current and future accounts receivable from distribution companies accrued in the context of Law #21,185, which creates an electricity tariff stabilization mechanism for regulated consumers, and exempt resolution #72 of the National Energy Commission ("CNE"), which set the rules for the application of the law. Under the financing transaction agreed with GS, EECL and EMR will be entitled to sell, without recourse to them, accounts receivable from distribution companies for up to a committed amount of US$162 million to Chile Electricity PEC SpA (the "Purchaser"). The sales of receivable will be perfected in groups, from time to time, as each Average Node Price decree ("PNP decree") is published including the corresponding chart with the balances owed by distribution companies to generation companies pursuant to the tariff stabilization law. On January 27, 2021, EECL, EMR and Inter-American Investment Corporation ("IDB Invest") reached an agreement under which IDB Invest will participate in the financing to the Purchaser for the acquisition of accounts receivable sold by EECL and EMR for up to a committed amount of US$74.7 million. The Company estimates that the total amount of accounts receivable, considering those already accrued and those to be accrued until the mechanism's cap is reached, which cannot occur after July 2023, could be approximately US$266 million. The sale of accounts receivable seeks to enhance the company's liquidity and procure the necessary financing resources in times of active investment in renewable generation projects.
    • On February 8, 2021, EECL and EMR sold the first group of accounts receivable to Chile Electricity PEC SpA. On March 31, EECL completed the sale of the second group of accounts receivable, while EMR sold its second group of accounts receivable on April 1. These sales were made under the terms and conditions agreed with Goldman Sachs and IDB Invest, as informed in material event notices published on January 20 and January 30, respectively. They comprised accounts receivable with total face value of US$141.9 million, representing approximately 54% of the total accounts receivable that ENGIE expects to accrue during the life of the price stabilization mechanism. The differential between the face value of the accounts receivable sold and the

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Engie Energía Chile SA published this content on 26 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 January 2022 20:36:10 UTC.