Good afternoon, ladies and gentlemen, and welcome to Second Quarter and First Half 2022 Results Conference Call. My name is Victor, and I will be your operator for today. [Operator Instructions] During this conference call, we may make statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect only our current expectations, are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those anticipated in the forward-looking statements as a result of various factors. These factors are described in Enel Chile’s press release reporting its second quarter and first half 2022 results, the presentation accompanying this conference call and Enel Chile’s Annual Report on Form 20-F, including under Risk Factors. You may access our second quarter and first half 2022 results press release and presentation on our website, www.enel.cl, and our 20-F on the SEC’s website, www.sec.gov. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of their date. Enel Chile undertakes no obligation to update these forward-looking statements or disclose any development as a result of which these forward-looking statements become inaccurate, except as required by law. I would now like to turn the presentation over to Mrs. Isabela Klemes, Head of Investor Relations of Enel Chile. Please proceed.

Good afternoon, and welcome to Enel Chile’s second quarter and first semester 2022 results presentation. Thank you all for joining us today. Joining me this afternoon is our CEO, Fabrizio Barderi and our CFO, Giuseppe Turchiarelli. Let me remind you that our presentation and related financial information are available on our website, www.enel.cl in the Investor Relations section and in our ask investors. In addition, a replay of the call will be soon available. In the time of this presentation, there will be an opportunity to ask questions via phone or webcast chat through the link ask a question. [Operator Instructions] In the following slides, Fabrizio will open the presentation regarding highlights and strategy updates. And then Giuseppe will walk us through our financial results and our recent material fact release. Thank you all for your attention, and let me now hand over to Fabrizio.

Thank you, Isabela. Good afternoon, and thanks for joining us. Let me now start with the highlights of the period on Slide 3. As you know, the market pressure remained over during the year to second quarter. Given these we have been taking several management actions to offset the pressure and take advantage of the [Indiscernible] of our assets, proving that our strategy is sustainable and resilient. I will give a detailed view of the actions contribution for this first up in the following slide. We have several force during the first semester, bringing us the right ideological perspective for the second semester. Also, there have been some regulatory updates, like they approved the second energy subdivision manage the distribution [Indiscernible] and some recent update related to the 2022 to 2024 report. Regarding our economic and financial performance, we have faced some temporary headwind over the margin related to the commodity pressure. But thanks to many actions we have put in place in the positive ideological perspective for the second half w are comfortable that we will execute our 2022 guidance, as we say in this presentation. Finally, as we have just released the asset allocation process as part of our sustainable balance sheet requisition with ongoing and evolving as expected in terms of both timing and multiple supplies in different stations, confirming the quality of our assets and our proposals to unlocking value for our shareholders. They [Indiscernible] agreement with a company fully owned by investors for an equity value of $1,345 million for the [Indiscernible]. We hope everything with the growth by the year end [Indiscernible]. Now let’s move to slide five to briefly talk about the market situation. The national electrical system has been impacted by a set of factors correlated with the rush of income and…

Sorry for the problem. Many thanks, Fabrizio. Good evening to our investors connected. I will start my presentation on the slide 11 with a quick summary of the adjusted -- apply in the period. In the first half in the second quarter of 2022 we applied an adjustment in the EBITDA due to the impairment made to the cost stock of the period, which amounted $62 million and $41 million, respectively. These adjustments had an effect of the bottom line of $42 million in the first half and $28 million in the second quarter. To the same period of 2021 we applied an adjustment due to the coal stock and the voluntary retirement which amounted to $40 million in the first half and $27 million in the fourth. At the bottom line these effects amounted $28 million and $19 million in the first and the second quarter respectively. The second quarter of 2022 adjusted EBITDA has a decrease of 54% or $110 million, mainly due to the higher commodity prices, which increase the spot prices and had an increase in the variable costs of the deal. These affected has also impacted the first half 2022 adjusted EBITDA performance, which decrease of 21% or $82 million in terms of adjusted net income during the first half 2022. This decrease by 3%, reflecting the lower EBITDA of the period, which was offset by the lower financial costs coming from the factory of the [Indiscernible] accounts made in the first half 2021 to improve the liquidity of the company. In the second quarter the net income decreased 65% due to the same reason mentioned before. First half 2022 CapEx almost reached $500 million, 12% higher than the first half 2021, mainly due to the construction of the new renewable capacity. In the second…

Many thanks Giuseppe. Just to point out some closing remarks. During our presentation, we have behaved the several actions we have taken to face a series of [Indiscernible] starting from the impact of an international conflict in the commodities market. All of these scenario led to main messages for us. First, we are on the right path to continue conducting the energy transition to the decarburization of our magic in the electrification of the consumption. Second, continue to reshape our actions to bring value to our stakeholders. [Indiscernible] and our action plan gives us confidence that we will reach our 2022 guidance. Let me be clear that there are no low hanging fruits on this path. But we know that we are trading the right world and we continue to unlock the value of our quality and resilient portfolio. Let me now hand it over to Isabela.

Thank you Fabrizio and let us open now the Q&A section as anticipated. We will receive questions via phone or chat in the webcast during today. Operator please, you can start the Q&A section.

[Operator Instructions] Our first question comes from the line of Murilo Riccini from Santander. Your line is open.

Many thanks for the call and information provided here today. So considering the level of water and use no start so far, and the reservoir in the mountains, can it be possible to generate approximately 10 terawatt hour of hybrid generation this year. This is my first question. And the second one is, could you provide us your view on the availability and prices of fuel during the second half of this year, after this lower shipments that we are currently seeing to Europe? Do you believe or do you see the possibility that your guests provider cancel any guests ships during the winter in Europe, even if they need to pay a fine, for example? And the third question is, do you have any other assets rotation in process or under analysis? Thank you.

Let me go with the first two questions. And let Giuseppe answer the third one. Well, yes, we are quite optimistic on the second semester, and we think that we could reach all of hydro production this year. This is our estimation today. Of course, as known season is not yet finished. It depends also on how it goes on in the next week. But as of today, this is our best estimation to be close to the 10 terawatt that we mentioned. Second question, no, we don’t foresee any problems in our gas supply. Our contract is very tight with many professing clauses in our favor in this case. So no, we are not worried about any potential consideration.

Possible other assets rotation, Murilo I mean we are always looking, whatever opportunity could come up from the market. We don’t have so far anything on the table, but it’s something we will consider, for sure we’re going to share this information with everybody but again, is there a regular process to look to our assets in order to find a way to unlock the value for the company.

Our next question is from the line of [Indiscernible] your line is open.

Hi, good afternoon, everybody. Thank you very much. The materials very complete as always. I have four questions. And I would like to go one by one if you do not mind. The first one is pretty much an accounting thing. We saw an unusual jump in the other operational expenses, P&L line not related to fuel, which affected EBITDA. Could you please tell us a little bit what was behind this?

May you explain a second which line you’re referring to because?

Yes. Before getting to EBITDA, you have four different operational expenses lines. And in the second quarter, the last one that says other operational expenses, that’s the one that jumped quarter-over-quarter significantly. My second question is related to the [Indiscernible] team shut down. And what’s the latest on the timing?

To fulfill the schedule that was defined with the minister of energy of course, as you well know, it was expected May then [Indiscernible] to perform at the end of September. And to be honest, we don’t see and we don’t need to get deeper ideological conditions that we committed back to the availability of Lanka, as the system is not expected to be on [Indiscernible] anymore. And for the rest going forward that we have also the ones they can integration of the renewal workflow. So we don’t see any reason why we should postpone again.

My third question or actually topic has to do with the sale of the transmission lines. I wanted to get a sense of how much tax you expect to pay in the gain of that sale and when Enel Chile actually pay for?

From what concern is going to be paid next year. The amount of the stock if you look at this the capital gain impact we are talking about around $350 million. But we have to consider that we have some losses that we can use in order to offset such amount. We are estimating around $100 million - $110 million. In the short we are talking about $240 million - $250 million next year.

And we’ll also just have -- mentioned that proceeds from the sale to pay down $1 billion debt amortization due 2023 and I wanted to know how much of that are intercompany loans?

Well, let me say that all the loan, all the fund with they’re going to dedicate it to the repayment of the loan, the criteria they don’t wish we are going to select the loan zone to be repeat that are basically, the expiration date and the cost associated to the to the rebate like breakage fee or other kinds of costs. I will say that a good portion of this amount is going to be used in order to repay the revolving credit facility that we got busier during this year and they are going to expire next year. We are talking about most of them are in the company credit.

My final question is also well, after selling the lines collecting the cash paying down the debt, I think you might still be a little bit above your comfort level regarding leverage. Is the Enel group thinking about an eventual equity injection of capital rates?

Well, of course, I mean, the answer is going to have to be done by -- what I know is of today’s isn’t, there is no plan now of capital injection on the table.

Thank you. We will move on to our next question. Our next question comes from the line of from [Indiscernible] JPMorgan. Your line is open.

Thank you. Good afternoon, Giuseppe and Fabrizio. Thanks for the question. I have a couple of ones. The first one would be, so this tax payment is about $250 million. And the equity value is over 1.3 billion. So the cash inflow was about $1.1 billion. Is that correct? I’m sorry, I was using the headphones. I’m going to try again. So, the question was, if the equity value is $1.3 billion and tax payment is about 250 million, so can we expect the cash inflows of about $1.1 billion if the asset sale?

Yes, yes, you have to consider that of course as a loan, an intercompany loan owned by Chile, basically also designed is going to be paid about out of tax, we are talking about 1.1 roughly. Again the correct amount for giving the correct amount we need to wait the end of public tender offer because there is a price adjustment mechanism that will change a little bit the amount of the equity event. So roughly, the calculation that you made is correct.

Thank you. The second question will be if the annual EBITDA of the traditional business is still about $70 million and the third question would be you mentioned the company could consider other opportunities in the market if they arose. My question would be what type of assets with Enel Chile selling or a large stake in case other asset rotation measures would have to be taken?

Well, again we used to evaluate all kinds of assets really Enel -- was out of our strategy that we are focused basically on the renewable and generation side and distribution side because of the guidance together with the new services of Enel. And having said that it is clear that renewable projects are easy to split in the model distribution and it’s all together so we are analyzing everything. Their view of the potential opportunity but it’s something we come up, we’re going to do.

And just to confirm the EBITDA. Thank you so much.

It is around $70 million if I am not wrong.

All right. I’m not showing any further questions in the queue. I’ll turn the call over to Isabela Klemes for any webcast chat or questions.

Victor, thank you all for your questions. Now I go through the chats that we received several questions from different analysts and investor connected. One of the questions here just to say again, like the numbers of these transaction to -- some analysis are requesting more details about the amount that we are expecting that is going to be the cashing of this operation and how much would be an estimate of the reduction of the net debt of the company considering this cashing.

As I said, we’re going to the projection that we have, is to get after the payment of the tax were around $1.1 billion. $1.1 billion that is going to be dedicated to the payment of the debt and to the distribution of the dividend related to the 30% dividend policy. So we’re talking about around $200 million dividend and around $190 million of debt, because again on top of the amount that we receive, they will be debated will be going to be paid also for the loan that we estimate at the end of the year around $170 million. So basically, we’re going to reduce significantly our debt.

And on the term, we are still missing questions regarding dividend. So the company is expecting to increase dividends related to the sale of these assets.

Well, we’re not going off, let me say we are going to increase the value of the dividends because we’re going to have this capital gain, we are not going to increase the dividend payout, but it will remain 30%. So since the 30% is mandatory okay, so the company has positive results. We are going to distribute the dividends associated to the capital gain after tax. We’re talking about roughly $200 million.

Then the other question that was made by [Indiscernible] he’s requesting more details about -- asking that the system is still very fresher to the hydrology and commodities. And if you are indeed, thinking close these facilities are now in September or if we’re expecting to let these units in the strategic reserve energy mechanism?

Yes, as I already mentioned, we don’t see the system to be any more like under stress. And this was also consistent with the great [Indiscernible] there’s no reason to postpone again, the closure for AMEA and we were pretty clear since the beginning that we are not going to use the strategic reserve mechanism, so it’s simply shut down the plant and finding an estimate to use the site.

Perfect, thank you, Fabrizio. We have more questions here also from several analysts and investors regarding the LNG. So what we are, first of all, what we’re expecting regarding sales of potential trading sales of natural gas in the second half of this year, and if we can deliver detail on how much was sold to or Enel has sold during this first half of this year. So also the other questions yes, this is all the questions in terms of LNG and commodities. So, Fabrizio?

Yes, well basically in the first part what was approximately 15 [Indiscernible] out of which 10 was about [Indiscernible] last year that was done last year in order to manage an effective -- to have during the first half of the year. The numbers they were meant to during the presentation while the other states were more short term or continuous, what I mentioned as an action to cope with the challenges scenario and pulling. And about the second, we expected to have as I mentioned the significant surplus during the combination of Argentinean gas availability and our long term LNG contract with Shell and so we expect another at least 10 data to be available to sell in the second half and good piece of news about that is that I think that we are trying to optimize better opportunity and to leverage on the very good market output about gas.

Thank you Fabrizio. We have another question also regarding the CapEx. What we are seeing regarding CapEx for Chile this year if we are estimating any kind of a reduction in the CapEx or postponing to the next year?

Well, the CapEx as you probably know most of our project our project already under construction actually all the projects are already under construction and committed. So, we are confirming the CapEx at the end of the year for because of course, we need the energy that this project is going to produce in order to improve our margins. So, as of today, we confirm that the CapEx is going to be in line with our capital market projection.

Perfect. Thank you and the final question here that we have regarding the rating agencies. So have you had recently discussions with other rating agencies and what they are anticipating regarding the moment of the company?

Yes, well, we always are in touch with the rating agency. We discuss and we pass all the message that we believe needed for them. We discussed about the progression of the business and the design also about the evolution of the debt. I believe that we are in line with their expectation in terms of managerial action that are needed in order to deliver the company. So we don’t really believe that rating agencies is going to give a negative feedback about the situation that we have today. So we are fine with them.

Okay, thank you very much Giuseppe and also Fabrizio and thank you all for being connected today. In case you may have any other doubts or any other consultations please let us know. And as always our Investor Relations team is going to be available for any other information you may need. Thank you very much and have a nice day.

This concludes today’s conference. Thank you for participating. You may now disconnect. Everyone have a good day.