Energy Companies

Enel Américas is an electric utility company, headquartered in Chile and organized in 1981. The Company is engaged in the generation, transmission, and distribution of electricity businesses in Argentina, Brazil, Colombia, and Peru through its subsidiaries and affiliates. As of December 31, 2020, the Company had 11,269 MW of net installed generation capacity and 25.6 million distribution customers. Net installed generation capacity is comprised of 112 generation units in the four countries, of which 55% are hydroelectric power plants. As of December 31, 2020, the Company had consolidated assets of US$ 26,934 million and operating revenues of US$ 12,193 million. Since June 2009, controlling shareholder has been the Italian company Enel SpA, which as of December 31, 2020 beneficially owned 65% of shares and as of April 2021 beneficially owned 82.3% of Company´s shares. Enel’s renewable energy´s arm Enel Green Power is the world’s largest publicly owned renewable energy player, with over 47 GW of wind, solar, geothermal, and hydropower plants installed in Europe, the Americas, Africa, Asia, and Oceania.

As of September 30, 2021 cumulated operating revenues showed a 35.1% increase compared to the same period of 2020, and amounted for US$ 11,513 million, explained by a higher operating revenue in Brazil and the consolidation of EGP Américas (EGPA) in April 2021, that represented an additional US$ 584 million income. Quarterly, operating revenues in the 3rd quarter 2021 increased by 72.2% over the year, mainly due to the contribution of EGPA. Without this, operating revenues would have increased by 28.3% mainly due to higher operating revenues in Brazil. EBITDA in the 3rd quarter of 2021 increased by 25.6% compared to the same period of 2020, reaching US$ 2,759 million. 47.1% over the year due to the better operational results.

According to the Annual Report 2020 Enel Américas´ consolidated revenues decreased from US$ 13,053 million in 2019 to US$ 11,238 million in 2020 or by 14%. EBIT decreased from US$ 2,406 million to USD$ 1,747 million or by 28% over the year, mainly explained by a sharp devaluation of currencies in the countries in which the Company operates, coupled with a contraction in energy demand related to COVID-19. Operational income amounted US$ 2,053 million in 2020 and decreased from US$2,769 million in 2019 by 26%. In 2020 total net income decreased from US$ 2,169 million in 2019 to US$ 1,181 million, or by 46%.

Revenue from Generation and Transmission Business of the Company in 2020 amounted for US$ 3,001 million compared to US$ 3,057 million in 2019 and remained flat, mainly explained by the following events: revenues and other operating income in Argentina decreased by US$ 205 million, or 47.1%, primarily explained by a decrease from Costanera. In Brazil, revenues and other operating income increased by US$ 328 million, or 42.2%, primarily explained by physical energy sales from Cachoeira Dourada. In Colombia, revenues and other operating income from Emgesa decreased by US$ 88 million, or 7.0%. This decrease is mainly explained by lower revenues of US$ 142 million due to the devaluation of the Colombian peso against the U.S. dollar. In Peru, revenues and other operating income from Enel Generation Peru decreased by US$ 91 million, or 15.3%, primarily explained by a decrease of US$ 73 million from Enel Generation Peru, or 14.1%.

Revenue from Distribution Business of the Company in 2020 amounted US$ 9,970 million compared to US$ 12,116 million and represented a decrease of 17.7% over the year. Revenues and other operating income in Argentina come from Edesur and decreased by US$ 546 million, or 40.5%, in 2020, mainly explained by devaluation of the Argentine peso against the U.S. dollar. In Brazil, revenues and other operating income decreased by US$ 1,419 million in 2020, or 17.4%, explained by a decrease of US$ 741 million from Enel Distribution Sao Paulo, or 19.9%, and of US$ 954 million in revenues due to the devaluation of the Brazilian real against the U.S. dollar. In Colombia, revenues and other operating income from Codensa decreased by US$ 118 million in 2020, or 7.1 %, mainly explained by US$ 194 million due to the devaluation of the Colombian peso against the U.S. dollar.

Operatingincome from the Generation and Transmission business decreased by US$ 194 million, or 14.6%, in 2020 compared to 2019, mainly explained by the following events: in Peru, operating income decreased by US$ 63 million, or 6.7%. In Argentina, the operating income decreased by US$ 102 million, or 65.8%, mainly attributable to higher maintenance costs, lower revenues and devaluation of the Argentine peso. In Brazil, the operating income decreased by US$ 15 million, or 5.1%, mainly due to higher energy purchases, increasing operating costs, and a decrease in operating income due to lower energy sales and the devaluation of the Brazilian real against the U.S. dollar. In Colombia, the operating income decreased by US$ 30 million, or 4.8%, mainly due to lower physical sales and the devaluation of the Colombian peso against the U.S. dollar. In Peru, the operating income decreased by US$ 47 million, or 18.6%, due to the devaluation of the new Peruvian Sol against the U.S. dollar, lower gas sales in Enel Generation Piura.

Operating income from the Distribution Business decreased by US$ 543 million, or 35.2%, compared to 2019, mainly explained by the following events: in Argentina, the operating income from Edesur decreased by US$ 279 million, or 132.4%, due to the settlement of the outstanding reciprocal claims arising in the transition period 2006-2016 for US$ 203 million, and the effects of the devaluation of the Argentine peso against the U.S. dollar. In Brazil, operating income decreased by US$ 153 million, or 21.7%, mainly by a decrease of US$ 102 million, or 62.1%, from Enel Distribution Rio, mostly attributable to the effects of the devaluation of the Brazilian real against the U.S. dollar and lower physical sales. In Colombia, operating income from Codensa decreased by US$ 56 million, or 13.0%, mainly due to lower physical sales and the devaluation of the Colombian peso against the US dollar. In Peru, operating income from Enel Distribution Peru decreased by US$ 55 million, or 27.8%, mainly explained by lower physical sales and devaluation of the new Peruvian sol against the U.S. dollar.

Net income attributable to the parent company on a consolidated basis reached US$ 825 million, a decrease of 48.9% compared to 2019, explained by lower demand primarily as a result of the Covid-19 pandemic, which affected revenues mainly in the distribution segment.

For the year ended December 31, 2020, net cash flows provided by operating activities totaled US$ 2,426 million, a decrease of US$ 102 million, or 4%, compared to US$ 2,528 million in 2019, due to reduction in cash collections from the sale of goods and services mainly related to the impact of the Covid-19 pandemic on the devaluation of the local currency, lockdown periods that led to lower energy consumption.

For the Company 2020 was an extremely challenging and uncertain year, which caused the deepest crises the Company has experienced in recent decades. Only in the last few months of 2020, the Company began to see certain signs of recovery both in the electricity demand and in revenue. However, Total Q3 2021 operating revenue increased 35.1%.