Enel Americas S A : Financial Statements Analysis - Q1 2025

About this update from Enel Americas S.a.

PRESS RELEASE CONSOLIDATED FINANCIAL STATEMENTS ENEL AMÉRICAS GROUP AS OF MARCH 31, 2025 (figures expressed in millions of US$) During the first quarter of 2025, revenues reached US$3,280 million, representing a decrease of 2.8% compared to the same period of the previous year. This is mainly explained by lower revenues in Brazil and Colombia, which were affected by the devaluation of the Brazilian real and the Colombian peso, respectively. This is partially offset by higher revenues in Argentina, mainly in the distribution business due to higher tariff indexation. EBITDA in the first quarter of the year reached US$1,007 billion, representing a decrease of 6.5% compared to the same period of the previous year. This is mainly explained by lower results in Brazil, due to the devaluation of the Brazilian real. This is partially offset by better results in generation in Colombia and Central America, due to higher hydraulic generation and lower energy purchases, and in distribution in Argentina, due to higher tariff indexation. Isolating the negative impact of US$126 million due to exchange rates, EBITDA would have grown by 5% compared to the same period of the previous year. CONTINUING OPERATIONS EBITDA (in US$ million) Accumulated Country Argentina Mar.-25 Mar.-24 Var % 4 n.m. 31 Brazil 509 637 (20.0%) Colombia 414 393 5.5% EGP Central America 56 47 18.0% Enel Américas (*) 1,007 1,077 (6.5%) (*) Includes Holding and Disposals Operating Income (EBIT) for the first quarter of 2025 reached US$649 million, representing a decrease of 11.1% compared to the first quarter of 2024, due to lower EBITDA and higher depreciation and amortization during the period. Net Income attributable to Enel Américas shareholders reached US$245 million in the first quarter of 2025, showing a decrease of 31.7% compared to the US$359 million recorded in the fourth quarter of 2024. This is explained by the contribution from distribution and generation operations in Peru, which were sold in May and June 2024, respectively. This is partially offset by lower financial expenses due to lower consolidated debt. In cumulative terms, the Net income reached US$245 million, equivalent to a decrease of 31.7% Net financial debt reached US$2,852 million, representing an increase of 34.1% compared to the end of 2024. This is mainly explained by higher debt in Enel Distribución Sao Paulo and Enel Distribución Ceará, and lower cash in Enel Américas Holding due to the payment of the interim dividend. CAPEX in the first quarter of 2025 amounted to US$406 million, representing a decrease of 27% compared to the first quarter of 2024. This is explained by lower investments in the generation business in Brazil and the devaluation of the exchange rate in Argentina, Brazil, and Colombia. Information Relevant to the analysis of these financial statements Changes in the consolidation perimeter due to Enel Américas Group's corporate simplification At the end of 2022, Enel Américas announced its strategic plan for the 2023-2025 period, where it communicated the simplification of the Group, which considered concentrating its operations in those countries that allow to accelerate the energy transition in the region, seeking to sell the operations in force until December 31, 2022, in Argentina and Peru . In the successive strategic plans presented in November 2023 and November 2024, the scope of this corporate simplification plan was reviewed, no longer considering the total exit from Argentina. As part of the corporate simplification initiative implemented by the Group, the divestitures executed in 2022 involving the Brazilian subsidiaries Enel Generación Fortaleza and Enel Distribución Goiás , along with the Argentine subsidiaries Enel Generación Costanera and Central Dock Sud completed in 2023, as well the sale process for the subsidiaries in Peru completed in 2024 . The main sales processes that Enel Américas has completed since 2022 to date are described below: a) Sale of Enel Generación Costanera and Central Dock Sud As of December 31, 2022, the Company was in advanced negotiations to sell its stake in the Argentine subsidiaries that operate the thermal generation business Enel Generación Costanera and Inversora Dock Sud , parent company of Central Dock Sud. Enel Américas' Management estimated that the sale of its participation in these subsidiaries will very likely take place in 2023. Considering the preceding paragraphs, pursuant to the provisions of IFRS 5 "Non-Current Assets Held for Sale and Discontinued Operations" and following the accounting criteria described in note 3. k), at the end of 2022, the Company reclassified the assets and liabilities of Enel Generación Costanera and Inversora Dock Sud as held for sale, measuring the former by the lower between their book value and fair value. The preceding meant recognizing a US$166 million impairment loss in the case of Enel Generación Costanera and a US$150 million impairment loss in the case of Inversora Dock Sud . Subsequently, on February 17, 2023 , through its subsidiary Enel Argentina, Enel Américas signed a sale agreement of the Group's 75.7% stake in the thermal generation company Enel Generación Costanera to the energy company Central Puerto S.A. The value of the sale was US$ 48 million, leading to a US$ 86 million loss on the sale recorded during the first quarter of 2023, mainly explained by the conversion differences generated in the consolidation process of Enel Generación Costanera in Enel Américas , accumulated in the comprehensive results as of the date of the disposal. On the same date, Enel Américas signed an agreement with Central Puerto to sell the 41.2% stake of Group in the thermal generation company Central Dock Sud . The sale was subject to meeting certain conditions precedent, which included the fact that the operation would be carried out only if Central Dock Sud's remaining minority shareholders , both direct and indirect, did not exercise their preemptive purchase right. On March 17, 2023 , YPF Luz, YPF's electric power company, notified Enel Américas of its intention to exercise its pre-emptive purchase right of all the shares it owns in Inversora Dock Sud S.A ., extending the same intention to the shares that Enel Américas owned in Central Dock Sud S.A . through Enel Argentina . Similarly, on the same date, Pan American Sur S.A. informed Enel Argentina of its intention to exercise its pre-emptive right to purchase the shares it held in Central Dock Sud . The agreement with the minority shareholders of Central Dock Sud , both direct and indirect, established a total of US$ 52 million as a sale value and was subject to meeting certain conditions precedent. On April 14, 2023, after meeting the conditions precedent, the sale of the Group's stake in Central Dock Sud was completed. As a result of this operation, the Company registered a US$ 193 million loss corresponding mainly to the conversion differences stemming from the consolidation process of Central Dock Sud in Enel Américas, accumulated in other comprehensive results until the date of completion to be recorded and entirely during the second quarter of 2023. Sale process of subsidiaries in Peru During the 2023 financial year, the Company initiated a process to complete the sale of its operating subsidiaries in Peru, which participate in electric power distribution, electric power generation, and advanced energy solutions. This process demonstrates notable advancement during 2024, as the sale of the primary subsidiaries has finalized. A summary of the companies involved in the sale process and the current status of the same is provided below: Enterprise Business Status Enel Generación Perú S.A.C. Electric Power Generation Finished. May 2024 Chinango S.A. (i) Electric Power Generation Finished. May 2024 Energética Monzón S.A.C. (i) Electric Power Generation Finished. May 2024 SL Energy S.A.C. (i) Electric Power Generation Finished. May 2024 Compañía Energética Veracruz S.A.C. Electric Power Generation Finished. May 2024 Enel Distribución Perú S.A.A. Electric Power Distribution Finished. June 2024 Enel X Peru S.A.C. Advanced Energy Solutions Finished. June 2024 Enel Generación Piura S.A. Electric Power Generation IN PROGRESS Enel X Way Perú S.A.C. E-mobility solutions IN PROGRESS (i) Subsidiaries of Enel Generación Perú Specific background: i) Sale process of Enel Generación Peru and Compañía Energética Veracruz S.A.C. On November 21, 2023 , Enel Américas and its Peruvian subsidiary, Enel Peru S.A.C. , entered into a Purchase and Sale Agreement ("PSA") under which they agreed to sell to Niagara Energy S.A.C. , a Peruvian company controlled by the global investment fund Actis, all of the shares it owns issued by Enel Generación Peru S.A.A. , equivalent to 66.50% owned by Enel Peru S.A.C. and 20.46% owned by Enel Américas , and by Compañía Energética Veracruz S.A.C. , equivalent to 100% of its share capital owned by Enel Peru S.A.C. (the "Sale and Purchase Agreement). The completion of the Purchase and Sale and the subsequent transfer of shares owned by Enel Américas and Enel Peru S.A.C. in Enel Generación Peru S.A.A. and Compañía Energética Veracruz S.A.C. was subject to typical conditions required for this type of transaction, including the approval of INDECOPI. The acquisition of the shares of Compañía Energética Veracruz S.A.C. would occur directly. In contrast, the acquisition of the shares of Enel Generación Peru S.A.A . would be conducted through a takeover bid (OPA) in compliance with Peruvian laws. Furthermore, on April 17, 2024, as per the terms of the PSA, Enel Américas sold all of its shares issued by Enel Generación Perú S.A.A. to Enel Peru S.A.C. This meant that Enel Peru S.A.C. was the only entity representing the Enel Group in Niagara Energy's prior takeover bid, which was conducted in accordance with Peruvian legislation, and 100% of those shares were sold. On May 9, 2024 , (i) the takeover bid was completed. The shares issued by Enel Generación Peru S.A.A. were awarded to Niagara Energy S.A.C. , and (ii) the shares of Compañía Energética Veracruz S.A.C . were transferred to Niagara Energy S.A.C. The price that Enel Peru S.A.C. received from the Sale was US$1,288 million, generating a US$333 million net effect on the consolidated results of Enel Américas. Sale process of Enel Distribución Peru and Enel X Peru. On April 7, 2023, subsidiary of Enel Américas, Enel Perú S.A.C., signed a "Share Purchase Agreement," under which it agreed to sell to China Southern Power Grid International (HK) Co., Ltd ., all of the shares it owns and issued by Enel Distribución Perú S.A.A., equivalent to 83.15% of its share capital and by Enel X Perú S.A.C., equivalent to 100% of its share capital (the "Share Purchase Agreement"). The completion of the sale and purchase agreement and the subsequent transfer of the shares of Enel Perú S.A.C. issued by Enel Distribución Perú S.A.A. and Enel X Perú S.A.C. was subject to certain conditions precedent customary for this type of transaction, including the approval of the former by the National Institute for the Defense of Competition and the Protection of Intellectual Property (INDECOPI) of the Republic of Peru and the approval of the Chinese authorities responsible for outbound direct investments (ODI). The acquisition will be carried out directly. However, the buyer must carry out a subsequent public acquisition offer in accordance with Peruvian legislation. On May 21, 2024 , all the regulatory conditions precedent to which the sale had been subject were met, so on June 12, 2024 , our subsidiary Enel Peru S.A.C. completed the sale of all the shares issued by Enel Distribución Peru S.A.A. , equivalent to approximately 83.15% of its share capital, and by Enel X Peru S.A.C. , equivalent to 100% of its share capital, to China Southern Power Grid International (HK) Co., Ltd . The price that Enel Peru S.A.C. received from the Sale was US$ 3,088 million , generating a US$ 1,410 million net effect on Enel Américas' consolidated results. It is essential to emphasize that, considering the advancements achieved, the Company has considered the provisions of IFRS 5 "Non-Current Assets Held for Sale and Discontinued Operations" (IFRS 5) and has adhered to the accounting criteria specified in note 3. k). Consequently, in 2023, the Company reclassified the assets and liabilities related to the businesses in Peru as held for sale. The operations in Peru have been classified as discontinued. The financial statements of Enel AMÉRICAS reflect the combined after-tax results of its operating subsidiaries in Peru. The results are presented as a single figure in the consolidated income statements, classified explicitly as gains from discontinued operations. Sale of Transmisora de Energía Renovable S.A. On September 6, 2023, our subsidiary Enel Colombia S.A. E.S.P., in conjunction with Enel Guatemala, S.A. and Generadora Montecristo S.A. , subsidiaries of Enel Colombia located in Guatemala, signed the purchase and sale agreement for the sale of 100% of the stake in the subsidiary Transmisora de Energía Renovable, S.A. ("Transnova") with Grupo Energía de Bogotá S.A. E.S.P. The mission of this Guatemala-based subsidiary is the transmission of electric energy in the nation. Initially designed to connect two electrical substations and a transmission line to facilitate the flow of energy produced by the Palo Viejo hydroelectric plant (which is operated by its related company Renovables de Guatemala, S.A.). However, at present, it serves the entirety of the national grid, facilitating connections between local related entities and independent third-party agents. The company owns overhead transmission line spanning 32 kilometers that connects the substations located in Uspantan and Chixoy 2. Considering the preceding paragraphs, in accordance with the provisions of IFRS 5 "Non-Current Assets Held for Sale and Discontinued Operations" and following the accounting criteria described in note 3. k), as of the end of the first quarter of 2023, the Company reclassified the assets and liabilities of Transmisora de Energía Renovable S.A. as held for sale. The expected sale value of this company exceeded its corresponding book value. On October 19, 2023 , our subsidiary Enel Colombia S.A. E.S.P. and its subsidiaries located in Guatemala completed the sale of 100% of their stake in the subsidiary Transmisora de Energía Renovable, S.A. Grupo Energía de Bogotá S.A. E.S.P. The sale price was MCOP 148,794,000 , which corresponds to US$34 million , generating a profit of US$3 million. e) Sale process of Central Cartagena in Colombia (SPCC) On July 12, 2023 , Enel Colombia S.A. E.S.P. and SMN Termo Cartagena signed an agreement for the sale and purchase of the assets of the Cartagena Thermal Power Plant and 100% of the stake of Sociedad Portuaria Central Cartagena S.A., concessionaire of the Port Permits essential for the operation needs of the Cartagena Thermal Power Plant. This thermoelectric plant, located in Mamonal, an industrial area of Cartagena, has an installed capacity of 203 megawatt (MW) and generates energy using gas and/or liquid fuel. In view of the above, pursuant to the provisions of IFRS 5 "Non-Current Assets Held for Sale and Discontinued Operations" and following the accounting criteria described in note 3.k), the Company reclassified the SPCC assets and liabilities as held for sale. Subsequently, on December 1, 2023 , the sale was completed, SMN taking ownership, management, and operation of the power generation plant and the port concession. Rounding The figures in this report are expressed in millions of US dollars and, for ease of presentation, have been rounded. That is why it might happen that when adding the figures contained in the tables, the result is not exactly equal to the total of the table.

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