Enel Chile (ENIC) DRS Draft registration statement

CONFIDENTIAL SUBMISSION – DRAFT DATED DECEMBER 4, 2015

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 20-F

x REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

¨ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended                    

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

¨ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of event requiring this shell company report,

For the transition period from                     to                    

Commission file number:                    

ENERSIS CHILE S.A.

(Exact name of Registrant as specified in its charter)

ENERSIS CHILE S.A.

(Translation of Registrant’s name into English)

CHILE

(Jurisdiction of incorporation or organization)

Santa Rosa 76, Santiago, Chile

(Address of principal executive offices)

Nicolás Billikopf, phone: (56-2) 2353-4639, Nicolas.Billikopf@enel.com, Santa Rosa 76, Piso 15, Santiago, Chile

(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)

Securities registered or to be registered pursuant to Section 12(b) of the Act:

Title of Each Class	Name of Each Exchange on Which Registered
American Depositary Shares Representing Common Stock Common Stock, no par value *	New York Stock Exchange

* Listed, not for trading, but only in connection with the registration of American Depositary Shares, pursuant to the requirements of the Securities and Exchange Commission.

Securities registered or to be registered pursuant to Section 12(g) of the Act: None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report Shares of Common Stock:                     

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    ¨  Yes    x  No

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.    ¨  Yes    ¨  No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    ¨  Yes    ¨  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    ¨  Yes    ¨  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  ¨                 Accelerated filer  ¨                 Non-accelerated filer  x

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP  ¨ International Financial Reporting Standards as issued by the International Accounting Standards Board  x Other  ¨

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.    ¨  Item 17    ¨  Item 18

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    ¨  Yes    ¨  No

SUBJECT TO COMPLETION, DATED DECEMBER 4, 2015 — FOR INFORMATION ONLY

INFORMATION STATEMENT

ENERSIS CHILE S.A.

Shares of Common Stock

American Depositary Shares

This information statement is being furnished to shareholders of Enersis S.A., or Enersis, in connection with the “división”,or “demerger”, under Chilean corporate law, of Enersis, which involves (i) the separation of the non-Chilean electricity generation and distribution businesses and assets of Enersis, (ii) the creation of Enersis Chile S.A., as part of the demerger, and (iii) the distribution by Enersis to its shareholders of all outstanding shares of common stock of Enersis Chile. The transactions described above are referred to collectively, as the “Spin-Off”. Following the Spin-Off, Enersis Chile will own and operate the Chilean electricity generation and distribution businesses and assets of Enersis.

Each holder of record of Enersis common stock as of the close of business on [●], 2016, or the record date, will receive one share of Enersis Chile common stock for each share of Enersis common stock held.

Enersis shareholders will vote to approve the Spin-Off at an Extraordinary Shareholders Meeting to be held on December 18, 2015. Enersis shareholders will not be required (i) to pay for the shares of Enersis Chile common stock to be received by them in the Spin-Off, (ii) to surrender or exchange shares of Enersis common stock in order to receive Enersis Chile common stock, or (iii) to take any other action in connection with the Spin-Off. There is currently no trading market for Enersis Chile common stock, [although a “when-issued” trading market may develop prior to the effective date of the Spin-Off.] Enersis Chile will apply to list the common stock on the Santiago Stock Exchange, the Electronic Stock Exchange and the Valparaíso Stock Exchange (collectively, the “Chilean Stock Exchanges”) and American Depositary Shares (“ADSs”), representing shares of Enersis Chile common stock, on the New York Stock Exchange.

In reviewing this information statement, you should carefully consider the matters described under the caption “Risk Factors” beginning on page 24.

Enersis Chile and shares of Enersis Chile common stock are being registered with the Chilean Superintendence of Securities and Insurance (Superintendencia de Valores y Seguros, or the SVS). The SVS has not approved or disapproved of the securities (including in the form of ADSs), or determined if this information statement or any Spanish language document(s) that will be used in Chile are truthful or complete.

Neither the U.S. Securities and Exchange Commission nor any state securities commission has approved or disapproved these securities or determined if this information statement is truthful or complete. Any representation to the contrary is a criminal offense.

This information statement does not constitute an offer to sell or the solicitation of an offer to buy any securities.

The date of this information statement is             , 2016.

Enersis Chile’s Simplified Organizational Structure After Giving Effect to the Spin-Off⁽¹⁾

As of September 30, 2015

(1) Only principal operating combined entities are presented here. The percentage listed for each of our combined entities represents our post-Spin-Off economic interest in such combined entity.

(2) Certain organizational charts contained in this information statement do not show Enel Latinoamérica because it is a wholly-owned subsidiary of Enel and Enel Iberoamérica.

TABLE OF CONTENTS

			Page
Glossary				2
Introduction				6
Summary of the Spin-Off				12
Presentation of Information				14
Forward-Looking Statements				17
PART I
	Item 1.	Identity of Directors, Senior Management and Advisers		19
	Item 2.	Offer Statistics and Expected Timetable		19
	Item 3.	Key Information		19
	Item 4.	Information on the Company		35
	Item 4A.	Unresolved Staff Comments		67
	Item 5.	Operating and Financial Review and Prospects		67
	Item 6.	Directors, Senior Management and Employees		91
	Item 7.	Major Shareholders and Related Party Transactions		97
	Item 8.	Financial Information		99
	Item 9.	The Offer and Listing		106
	Item 10.	Additional Information		112
	Item 11.	Quantitative and Qualitative Disclosures About Market Risk		130
	Item 12.	Description of Securities Other Than Equity Securities		137
PART II
	Item 13.	Defaults, Dividend Arrearages and Delinquencies		146
	Item 14.	Material Modifications to the Rights of Security Holders and Use of Proceeds		146
	Item 15.	Controls and Procedures		146
	Item 16.	Reserved		146
	Item 16A.	Audit Committee Financial Expert		146
	Item 16B.	Code of Ethics		146
	Item 16C.	Principal Accountant Fees and Services		146
	Item 16D.	Exemptions from the Listing Standards for Audit Committees		146
	Item 16E.	Purchases of Equity Securities by the Issuer and Affiliated Purchasers		146
	Item 16F.	Change in Registrant’s Certifying Accountant		146
	Item 16G.	Corporate Governance		146
	Item 16H.	Mine Safety Disclosure		146
PART III
	Item 17.	Financial Statements		147
	Item 18.	Financial Statements		147
	Item 19.	Exhibits		147

GLOSSARY

AFP	Administradora de Fondos de Pensiones	A legal entity that manages a Chilean pension fund.
CDEC	Centro de Despacho Económico de Carga	Autonomous entity in two Chilean electric systems in charge of coordinating the efficient operation and dispatch of generation units to satisfy demand.
Celta	Compañía Eléctrica Tarapacá S.A.	Chilean generation subsidiary of Endesa Chile that operates plants in the SING and SIC. Celta merged with Endesa Eco in November 2013 and currently operates several plants in northern Chile including Pangue, San Isidro, and those previously held by Endesa Eco.
Chilean Stock Exchanges	Chilean Stock Exchanges	The three principal stock exchanges located within Chile: the Santiago Stock Exchange, the Electronic Stock Exchange and the Valparaíso Stock Exchange.
Chilectra Américas	Chilectra Américas S.A.	A newly formed electricity company to be spun-off by Chilectra to hold minority interests in Argentina, Brazil, Colombia and Peru.
Chilectra Chile	Chilectra S.A.	Chilean electricity distribution company operating in the Santiago metropolitan area and our combined entity.
CNE	Comisión Nacional de Energía	Chilean National Energy Commission, governmental entity with responsibilities under the Chilean regulatory framework.
DCV	Depósito Central de Valores S.A.	Chilean Central Securities Depositary.
Endesa Américas	Endesa Américas S.A.	A newly formed related company to be spun-off by Endesa Chile with operations in Argentina, Brazil, Colombia and Peru.
Endesa Chile	Empresa Nacional de Electricidad S.A.	A publicly held limited liability stock corporation incorporated under the laws of the Republic of Chile that, following our Spin-Off from Enersis Américas, will be our combined entity with electricity generation operations in Chile.
Endesa Eco	Endesa Eco S.A.	A former Chilean subsidiary of Endesa Chile and owner of Central Eólica Canela S.A. and Ojos de Agua mini hydroelectric plant. Endesa Eco merged with Celta in November 2013.

2

Enel	Enel S.p.A.	An Italian power company that will hold a 60.6% beneficial interest in us and be our ultimate parent company.
Enel Iberoamérica	Enel Iberoamérica, S.R.L.	A wholly-owned subsidiary of Enel and owner of 20.3% of us, which it acquired from Endesa Spain in October 2014. Enel Iberoamérica was formerly known as Enel Energy Europe S.R.L.
Enel Latinoamérica	Enel Latinoamérica, S.A.	A wholly-owned subsidiary of Enel Iberoamérica and owner of 40.3% of us.
Enersis	Enersis S.A. (before the Spin-Off)	A publicly held limited liability stock corporation incorporated under the laws of the Republic of Chile, with subsidiaries engaged primarily in the generation, transmission and distribution of electricity in Chile, Argentina, Brazil, Colombia, and Peru. The company from which our company is being spun-off.
Enersis Américas	Enersis Américas S.A.	A related publicly held limited liability stock corporation incorporated under the laws of the Republic of Chile, with combined entities engaged primarily in the generation, transmission and distribution of electricity in Argentina, Brazil, Colombia, and Peru. This will be the continuing Enersis, after giving effect to the Spin-Off.
Enersis Chile	Enersis Chile S.A.	Our company, a limited liability stock corporation incorporated under the laws of the Republic of Chile, with combined entities engaged primarily in the generation and distribution of electricity in Chile that, following our Spin-Off from Enersis Américas, will be publicly held.
ESM	Extraordinary Shareholders’ Meeting	Extraordinary Shareholders’ Meeting.
GasAtacama	GasAtacama S.A.	Company involved in gas transportation and electricity generation in northern Chile that is a subsidiary of Endesa Chile.
GasAtacama Holding	Inversiones GasAtacama Holding Ltda.	A holding company which owns GasAtacama and is a subsidiary of Endesa Chile following the acquisition of an additional 50% interest from Southern Cross Latin America Private Equity Fund III, L.P. in April 2014.
Gener	AES Gener S.A.	Chilean generation company and our competitor in Chile.

3

GNL Quintero	GNL Quintero S.A.	Company created to develop, build, finance, own and operate a LNG regasification facility at Quintero Bay (Chile) in which LNG is unloaded, stored and regasified.
IFRS	International Financial Reporting Standards	International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB).
IMV	Inmobiliaria Manso de Velasco Ltda.	Our former, wholly-owned real estate subsidiary which merged into ICT in December 2014. As a result, IMV is now included in SIEI.
LNG	Liquefied Natural Gas.	Liquefied natural gas.
NCRE	Non-Conventional Renewable Energy	Energy sources which are continuously replenished by natural processes, such as wind, biomass, mini-hydro, geothermal, wave, or tidal energy.
NIS	Sistema Interconectado Nacional	Chilean national interconnected electric system.
OSM	Ordinary Shareholders’ Meeting	Ordinary Shareholders’ Meeting.
Pangue	Empresa Eléctrica Pangue S.A.	A former Chilean subsidiary of Endesa Chile and former owner of the Pangue power station. Pangue merged with San Isidro, which merged with Endesa Eco, which then merged with Celta. As a result, Pangue is now included in Celta.
Pehuenche	Empresa Eléctrica Pehuenche S.A.	A publicly held Chilean electricity company, owner of three power stations in the Maule River basin and a subsidiary of Endesa Chile.
San Isidro	Compañía Eléctrica San Isidro S.A.	A former Chilean subsidiary of Endesa Chile. San Isidro merged with Pangue in May 2012 and Endesa Eco merged with San Isidro in September 2013. Celta merged with Endesa Eco in November 2013. As a result, San Isidro is now included in Celta.
SEF	Superintendencia de Electricidad y Combustible	Chilean Superintendence of Electricity and Fuels, a governmental entity in charge of supervising the Chilean electricity industry.
SIC	Sistema Interconectado Central	Chilean central interconnected electric system covering all of Chile except the north and the extreme south.

4

SIEI	Servicios Informáticos e Inmobiliarios Ltda.	A business consultancy in technology, information and computer science, telecommunications, data transmission and real estate which was formed following the merger of ICT Servicios Informáticos Ltda. (“ICT”) with Inmobiliaria Manso de Velasco Ltda. (“IMV”).
SING	Sistema Interconectado del Norte Grande	Chilean interconnected electric system operating in northern Chile.
SVS	Superintendencia de Valores y Seguros	Chilean Superintendence of Securities and Insurance, the authority in charge of supervising public companies, securities and the insurance business.
UF	Unidad de Fomento	Chilean inflation-indexed, Chilean peso-denominated monetary unit.
UTA	Unidad Tributaria Anual	Chilean annual tax unit. One UTA equals 12Unidad Tributaria Mensual (“UTM”), which is a Chilean inflation-indexed monthly tax unit used to define fines, among other purposes.
VAD	Valor Agregado de Distribución	Value added from distribution of electricity.

5

INTRODUCTION

Unless the context otherwise requires, all references in this information statement to:

• “we”, “us”, “our”, “the Company” and “Enersis Chile” refer to the Chilean Business (as defined below) prior to the Spin-Off and to Enersis Chile S.A. following the Spin-Off;

• “Enersis” refers to Enersis S.A. prior to the Spin-Off;

• “Enersis Américas” refers to Enersis Américas S.A. (formerly named Enersis S.A.) following the Spin-Off, which will continue to hold the Non-Chilean Business as defined below;

• “Chilean Business” refers to the Chilean electricity generation and distribution businesses and assets held by Enersis S.A. prior to the Spin-Off and to be held by Enersis Chile after the Spin-Off; and

• “Non-Chilean Business” refers to the non-Chilean electricity generation, transmission and distribution businesses and assets comprised exclusively of the ownership interests in shares of companies with operations outside of Chile, in Argentina, Brazil, Colombia and Peru, held by Enersis S.A. prior to the Spin-Off and continued to be held by Enersis Américas after the Spin-Off.

This information statement is part of a Registration Statement on Form 20-F (the “Registration Statement”) filed with the U.S. Securities and Exchange Commission in connection with the spin-off by Enersis, a Chilean company engaged in the electricity generation, transmission and distribution, to its shareholders of the shares of Enersis Chile, a Chilean corporation to be formed, that will hold the Chilean electricity generation and distribution businesses and assets.

6

Overview of the Spin-Off and Reorganization

The Spin-Off is part of a reorganization (the “Reorganization”) of certain companies ultimately controlled by Enel S.p.A., an Italian electricity generation company (“Enel”), which beneficially owns 60.6% of Enersis. The Reorganization is intended to separate the electricity generation and distribution businesses and assets of Enersis and its combined entities in Chile from the generation, transmission and distribution businesses in Argentina, Brazil, Colombia and Peru as shown in the following chart.

The Spin-Offs

First, each of Empresa Nacional de Electricidad S.A. (“Endesa Chile”), a Chilean electricity generation company and combined entity of Enersis, and Chilectra S.A. (“Chilectra”), a Chilean electricity distribution company and subsidiary of Enersis, will spin-off to their respective shareholders pro rata the shares of two new Chilean entities Endesa Américas S.A. (“Endesa Américas”) and Chilectra Américas S.A. (“Chilectra Américas”), that will hold the Non-Chilean Business, comprised exclusively of their respective ownership interests in shares of companies domiciled outside of Chile, formerly held by Endesa Chile and Chilectra, respectively (the “Endesa/Chilectra Spin-Offs”). Each of the Endesa/Chilectra Spin-Offs will be effected by means of a procedure under Chilean corporate law called a “división” or “demerger.” Following the Endesa/Chilectra Spin-Offs, Endesa Chile will continue to hold the Chilean businesses and assets of Endesa Chile and Chilectra Chile will continue to hold the Chilean businesses and assets of Chilectra (“Chilectra Chile”). Enersis, as the 60.0% owner of Endesa Chile and the 99.1% owner of Chilectra, will own 60.0% of Endesa Américas and 99.1% of Chilectra Américas as a result of the Endesa/Chilectra Spin-Offs and the minority shareholders of

7

Endesa Chile and Chilectra will own their respective percentage interests in Endesa Américas and Chilectra Américas, respectively, based on a pro rata distribution of the spin-off company shares. The shares of Endesa Américas and Chilectra Américas will be listed and traded on the Chilean Stock Exchanges and the American Depositary Receipts (“ADRs”) of Endesa Américas will be listed and traded on the New York Stock Exchange (“NYSE”).

Second, following the Endesa/Chilectra Spin-Offs, Enersis will conduct a “demerger” to separate Enersis into two companies. The new company, Enersis Chile S.A. (“Enersis Chile”) will be established as a separate company and will be assigned the equity interests, assets and associated liabilities of Enersis’ businesses in Chile, including the equity interests in each of Endesa Chile and Chilectra Chile after giving effects to the Endesa/Chilectra Spin-Offs (the “Separation”). Upon the completion of the Separation, Enersis Chile will register its shares with the Securities Registry of the SVS under Chilean law and the SEC under applicable U.S. federal securities laws, and subject to the receipt of necessary authorizations, the completion of legal formalities and the satisfaction of the conditions precedent, Enersis will distribute to its shareholders shares of Enersis Chile in proportion to their share ownership in Enersis based on a ratio of one share of Enersis Chile for each outstanding share of Enersis (the “Distribution,” and together with the Separation, the “Spin-Off”).

Enel will beneficially own 60.6% of Enersis Chile as a result of the Spin-Off, and the minority shareholders of Enersis will own their respective percentage interest in Enersis Chile. Upon the effectiveness of the Spin-Off, Enersis will change its name to Enersis Américas S.A. (“Enersis Américas”). The shares of Enersis Chile will be listed and traded on the Chilean Stock Exchanges and the ADRs of Enersis Chile will be listed and traded on the NYSE.

8

Each of the Endesa/Chilectra Spin-Offs is conditioned on the approval by Enersis shareholders of the Spin-Off, and the Spin-Off is conditioned on the approval by the respective shareholders of Endesa Chile and Chilectra of the Endesa/Chilectra Spin-Offs. For further details, see Item 9. The Offer and Listing — B. Plan of Distribution — Background and Description of the Spin-Off Conditions Precedents.

The Tender Offer

Upon the completion of the Endesa/Chilectra Spin-Offs and the Spin-Off, Enersis Américas will conduct a public cash tender offer (oferta pública de adquisición de valores) for the shares and ADSs of Endesa Américas under Chilean law and applicable U.S. securities laws (the “Tender Offer”).

The Tender Offer is contingent on (i) the completion of the Endesa/Chilectra Spin-Offs and the Spin-Off, (ii) the approval of the Merger by the respective shareholders of Enersis Américas, Endesa Américas and Chilectra Américas at separate extraordinary shareholders’ meetings of Enersis Américas, Endesa Américas and Chilectra Américas as described in “—The Merger,” (iii) less than 6.73% of the outstanding shares of Enersis Américas and 7.72% of the outstanding shares of Endesa Américas exercising the right of withdrawal in connection with the Merger, and (iv) the absence of any significant adverse supervening events that would make the Tender Offer not in the best interest of Enersis Américas.

The Tender Offer will be for all shares, including in the form of ADSs represented by ADRs of Endesa Américas (other than those held by Enersis Américas), for a price of Ch$ 236.00 per share (or the equivalent in U.S. dollars at the date of payment in the case of ADSs), and will be subject to other terms and conditions which will be provided at the appropriate time. The Tender Offer is expected to occur by the third quarter of 2016.

9

This information statement is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any securities of Enersis, Enersis Américas, Endesa Chile or Endesa Américas. When and if the Tender Offer is commenced, Enersis Américas will make available the tender offer materials to the shareholders of Endesa Américas and file such materials with the SEC in accordance with applicable U.S. federal securities laws and SEC rules. In that event, shareholders and investors are urged to read the tender offer materials because they will contain important information, including the full details of the Tender Offer. Shareholders and investors may obtain free copies of the tender offer materials that Enersis Américas files with the SEC at the SEC’s website at http://www.sec.gov and will receive information at an appropriate time on how to obtain tender offer materials for free from Enersis Américas. These documents are not currently available and their availability is subject to the determination to commence the Tender Offer. The consummation of the Spin-Offs is not conditioned on the Tender Offer.

The Merger

Following the completion of the Endesa/Chilectra Spin-Offs and the Spin-Off described above, each of Enersis Américas, Endesa Américas and Chilectra Américas (then holding the non-Chilean assets of their respective businesses), and subject to approval by shareholders holding at least two-thirds of the outstanding shares of the relevant companies, intend to merge together (the “Merger”), with Enersis Américas continuing as the surviving company under the name Enersis Américas S.A. (the “Surviving Company”). Following completion of the Merger, the Surviving Company will continue to have its shares publicly traded and listed in Chile on the Chilean Stock Exchanges and its ADRs traded on the NYSE. In the Merger, the shares of Endesa Américas and Chilectra Américas will be converted into shares of the Surviving Company and Endesa Américas and Chilectra Américas shares will cease trading on the Chilean Stock Exchanges and ADRs of Endesa Américas will cease to trade on the NYSE. Following the Merger, Enel is expected to continue to be the ultimate controlling shareholder, through its beneficial ownership, of the Surviving Company and the former minority shareholders of Enersis Américas, Endesa Américas and Chilectra Américas will own the minority interest in the Surviving Company.

Based on the valuation reports received by the Board of Directors and the Directors’ Committee of Enersis, a majority of the Board of Directors of Enersis has determined that the number of shares of Enersis Américas to be paid by Enersis Américas as consideration for each share of Endesa Américas and Chilectra Américas in connection with the Merger, if approved by the respective shareholders of Enersis Américas, Endesa Américas and Chilectra Américas, will be as follows:

	Number of shares of Enersis Américas for each
Endesa Américas share		2.8
Chilectra Américas share		5.0

10

In connection with the Merger, each of Enersis Américas, Endesa Américas and Chilectra Américas will hold an extraordinary shareholders’ meeting to approve the Merger. Prior to such extraordinary shareholders’ meetings, Enersis Américas will register the shares of the Surviving Company to be issued in the Merger with the SEC under the Securities Act. In connection with their respective extraordinary shareholders’ meetings to approve the Merger, which are expected to be held in mid-2016, Enersis Américas will distribute to the shareholders of each of Enersis Américas, Endesa Américas and, if necessary, Chilectra Américas a proxy statement/prospectus containing information about the Merger and the Surviving Company.

11

SUMMARY OF THE SPIN-OFF

This information statement is being furnished in connection with the Spin-Off and the following is a summary of the material terms of the Spin-Off. See “Item 9. The Offer and Listing — B. Plan of Distribution — Description of the Spin-Off” for a more detailed description of the matters below.

Distributing Company	Enersis S.A., a publicly held limited liability stock company organized under the laws of the Republic of Chile. After the completion of the Spin-Off, Enersis Américas will not own any capital stock of Enersis Chile and Enersis Chile will not own any capital stock of Enersis Américas.
Issuer Company	Enersis Chile S.A., a corporation that will be incorporated for the first time as a publicly held limited liability stock corporation under the laws of the Republic of Chile and that will hold the Chilean electricity generation and distribution businesses and assets formerly held by Enersis. Immediately after the effectiveness of the Spin-Off, the share capital of Enersis Chile will be Ch$ 2,229,108,974,538 and the capital structure of Enersis Chile will be identical to that of Enersis immediately prior to the Spin-Off. Enersis Américas and Enersis Chile will initially have the same shareholders, including controlling shareholders.
Conditions Precedent	The Spin-Off is contingent upon the satisfaction of specific conditions precedent. See “Item 9. The Offer and Listing — B. Plan of Distribution — Conditions Precedent.”
Share Record Date	[●], 2016
Share Distribution Date	[●], 2016
ADS Record Date	[●], 2016
ADS Distribution Date	[●], 2016
Use of Proceeds	Neither Enersis nor Enersis Chile will receive any proceeds in connection with the Spin-Off.
Distribution Ratio	Holders of Enersis common stock (“Enersis Shares”) as of the Share Record Date will have the right to receive one share of Enersis Chile common stock (“Enersis Chile Shares”) for each Enersis Share on the Share Distribution Date. Holders of Enersis American Depositary Shares (“Enersis ADSs”) as of the ADS Record Date will have the right to receive one Enersis Chile American Depositary Share (“Enersis Chile ADSs”) for each Enersis ADS on the ADS Distribution Date.
Distribution Method	Distribution of Enersis Chile Shares that are not deposited with the Chilean Central Securities Depositary (DCV Registros, S.A., Depósito Central de Valores, or the “DCV”), which is the clearing system for securities traded on the Chilean Stock Exchanges, will be made against the presentation of Enersis share certificates. For Enersis Chile Shares deposited with the DCV, distribution will generally be made by book-entry annotation in the shareholder list maintained by the DCV.

12

Persons holding Enersis ADSs through the facilities of The Depository Trust Company (“DTC”) will receive the distribution of Enersis Chile ADSs by book-entry only, through the facilities of DTC. Persons holding Enersis ADSs directly will receive the distribution of Enersis Chile ADSs in the form of certificated American Depositary Receipts (“ADRs”), representing Enersis Chile ADSs. Enersis share certificates and certificated ADRs will continue to represent the shares and ADSs of Enersis Américas after the Spin-Off without any need to exchange or surrender those certificates.

Risk Factors

The Spin-Off and the Chilean Business that will be held by Enersis Chile following the Spin-Off are subject to both general and specific risks. See “Item 3. Key Information—D. Risk Factors.”

13

PRESENTATION OF INFORMATION

Financial Information

In this information statement, unless otherwise specified, references to “U.S. dollars” or “US$”, are to dollars of the United States of America; references to “pesos” or “Ch$” are to Chilean pesos, the legal currency of Chile; references to “€” or “Euros” are to the legal currency of the European Union; and references to “UF” are to Development Units (Unidades de Fomento).

TheUnidad de Fomento is a Chilean inflation-indexed, peso-denominated monetary unit that is adjusted daily to reflect changes in the official Consumer Price Index (“CPI”) of the Chilean National Institute of Statistics (Instituto Nacional de Estadísticasor “INE”). The UF is adjusted in monthly cycles. Each day in the period beginning on the tenth day of the current month through the ninth day of the succeeding month, the nominal peso value of the UF is indexed in order to reflect a proportionate amount of the change in the Chilean CPI during the prior calendar month. As of September 30, 2015, one UF was equivalent to Ch$ 25,346.69. The U.S. dollar equivalent of one UF was US$ 36.28 as of September 30, 2015, using the Observed Exchange Rate reported by the Central Bank of Chile (Banco Central de Chile) as of September 30, 2015 of Ch$ 698.72 per US$ 1.00. The U.S. dollar observed exchange rate (dólar observado) (the “Observed Exchange Rate”), which is reported by the Central Bank of Chile and published daily on its webpage, is the weighted average exchange rate of the previous business day’s transactions in the Formal Exchange Market

The Central Bank of Chile may intervene by buying or selling foreign currency on the Formal Exchange Market to maintain the Observed Exchange Rate within a desired range.

As of November 30, 2015, one UF was equivalent to Ch$ 25,598.41. The U.S. dollar equivalent of one UF was US$ 35.99 on November 30, 2015, using the Observed Exchange Rate reported by the Central Bank of Chile as of such date of Ch$ 711.20 per US$ 1.00.

Our combined financial statements and, unless otherwise indicated, other financial information concerning us included in this information statement are presented in Chilean pesos. We have prepared our combined financial statements in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standard Board (“IASB”).

All of our combined entities are integrated and all their assets, liabilities, income, expenses and cash flows are included in the combined financial statements after making the adjustments and eliminations related to intra-group transactions. References in this information statement to combined entities refer to entities that are controlled, either directly or indirectly, by Enersis Chile. Control is achieved when Enersis Chile (i) has power over the entity, (ii) is exposed, or has rights, to variable returns from its involvement with the entity and (iii) has the ability to use its power to effect its returns. Enersis Chile has power over its combined entities when it holds the majority of the substantive voting rights or, when it has less than a majority of the voting rights, and those rights are sufficient to give it the practical ability to direct the relevant activities of the entity unilaterally.

Investments in associated companies over which we exercise significant influence are included in our combined financial statements using the equity method. For detailed information regarding combined entities, jointly-controlled entities and associated companies, see Appendices 1, 2 and 3 to the combined financial statements.

For the convenience of the reader, this information statement contains translations of certain Chilean peso amounts into U.S. dollars at specified rates. Unless otherwise indicated, the U.S. dollar equivalent for information in Chilean pesos is based on the Observed Exchange Rate for September 30, 2015, as defined in “Item 3. Key Information — A. Selected Financial Data — Exchange Rates”. The Federal Reserve Bank of New York does not report a noon buying rate for Chilean pesos. No representation is made that the Chilean peso or

14

U.S. dollar amounts shown in this information statement could have been or could be converted into U.S. dollars or Chilean pesos, as the case may be, at such rate or at any other rate. See “Item 3. Key Information — A. Selected Financial Data — Exchange Rates”.

Unaudited Pro Forma Combined Financial Information

The pro forma information is based on the historical combined financial statements of the Chilean Business of Enersis after giving effect to the transactions and applying the estimates, assumptions and adjustments described in the accompanying notes to the unaudited pro forma combined financial information. The historical column in the unaudited pro forma combined statement of financial position is derived from the historical combined statement of financial position of the Chilean Business of Enersis as of September 30, 2015 included in this information statement. The historical columns in the unaudited pro forma combined statements of income for the year ended December 31, 2014 and the nine months ended September 30, 2015 are derived from the historical combined statements of income of the Chilean Business of Enersis for the year ended December 31, 2014 and the nine months ended September 30, 2015 included in this information statement.

The unaudited pro forma combined financial information has been prepared by Enersis’ management for illustrative purposes and is not intended to represent the combined financial position or combined results of operations in future periods or what the results actually would have been had Enersis completed the proposed spin-off transactions during the specified periods.

Technical Terms

References to “TW” are to terawatts; references to “GW” and “GWh” are to gigawatts and gigawatt hours, respectively; references to “MW” and “MWh” are to megawatts and megawatt hours, respectively; references to “kW” and “kWh” are to kilowatts and kilowatt hours, respectively; references to “kV” are to kilovolts, and references to “MVA” are to megavolt amperes. References to “BTU” and “MBTU” are to British thermal unit and million British thermal units, respectively. A “BTU” is an energy unit equal to approximately 1055 joules. References to “Hz” are to hertz; and references to “mtpa” are to metric tons per annum. Unless otherwise indicated, statistics provided in this information statement with respect to the installed capacity of electricity generation facilities are expressed in MW. One TW equals 1,000 GW, one GW equals 1,000 MW, and one MW equals 1,000 kW.

Statistics relating to aggregate annual electricity production are expressed in GWh and based on a year of 8,760 hours, except for leap years, which are based on 8,784 hours. Statistics relating to installed capacity and production of the electricity industry do not include electricity of self-generators. Statistics relating to our production do not include electricity consumed by us by our own generation units.

Energy losses experienced by generation companies during transmission are calculated by subtracting the number of GWh of energy sold from the number of GWh of energy generated (excluding their own energy consumption and losses on the part of the power plant), within a given period. Losses are expressed as a percentage of total energy generated.

Energy losses during distribution are calculated as the difference between total energy purchased (GWh of electricity demand, including own generation) and the energy sold (also measured in GWh), within a given period. Distribution losses are expressed as a percentage of total energy purchased. Losses in distribution arise from illegally tapped energy as well as technical losses.

Calculation of Economic Interest

References are made in this information statement to the “economic interest” of Enersis Chile in its related companies. In circumstances where we do not directly own an interest in a related company, our economic

15

interest in such ultimate related company is calculated by multiplying the percentage of economic interest in a directly held related company by the percentage of economic interest of any entity in the ownership chain of such related company. For example, if we own 60% of a directly held combined entity and that combined entity owns 40% of an associate, our economic interest in such associate would be 60% times 40%, or 24%.

Rounding

Certain figures included in our combined financial statements have been rounded for ease of presentation. Percentages expressed in this information statement may not have been calculated using rounded figures, but by using amounts prior to rounding. For this reason, percentages expressed in this information statement may vary from those obtained by performing the same calculations using figures in our combined financial statements. Certain other amounts that appear in the tables in this information statement may not total exactly due to rounding.

16

FORWARD-LOOKING STATEMENTS

This information statement contains statements that are or may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements appear throughout this information statement and include statements regarding our intent, belief or current expectations, including but not limited to any statements concerning:

• our capital investment program;

• trends affecting our financial condition or results from operations;

• our dividend policy;

• the future impact of competition and regulation;

• political and economic conditions in the countries in which we or our related companies operate or may operate in the future;

• any statements preceded by, followed by or that include the words “believes”, “expects”, “predicts”, “anticipates”, “intends”, “estimates”, “should”, “may” or similar expressions; and

• other statements contained or incorporated by reference in this information statement regarding matters that are not historical facts.

Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to:

• changes in the Chilean regulatory framework of the electricity industry;

• our ability to implement proposed capital expenditures, including our ability to arrange financing where required;

• the nature and extent of future competition in our principal markets;

• the factors discussed below under “Risk Factors.”

You should not place undue reliance on such statements, which speak only as of the date that they were made. Our independent registered public accounting firm has not examined or compiled the forward-looking statements and, accordingly, does not provide any assurance with respect to such statements. You should consider these cautionary statements together with any written or oral forward-looking statements that we may issue in the future. We do not undertake any obligation to release publicly any revisions to forward-looking statements contained in this information statement to reflect later events or circumstances or to reflect the occurrence of unanticipated events.

For all these forward-looking statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

17

RECENT DEVELOPMENTS

[●]

18

PART I

Item 1. Identity of Directors, Senior Management and Advisers

A. Directors and Senior Management

For information regarding our directors and senior management, see “Item 6. Directors, Senior Management and Employees—A. Directors and Senior Management.”

B. Advisors

Not applicable.

C. Auditors

Our combined financial statements as of September 30, 2015, December 31, 2014 and 2013, and as of January 1, 2013 and for the nine months ended September 30, 2015 and the years ended December 31, 2014 and 2013 were audited by Ernst & Young Servicios Profesionales de Auditoría y Asesorías Limitada (“EY Ltda.”), with offices at Avenida Presidente Riesco 5435, 4^th floor, Santiago, Chile. EY is a member of Ernst & Young Global Limited and is an independent registered public accounting firm registered with the Public Company Accounting Oversight Board (“PCAOB”).

Item 2. Offer Statistics and Expected Timetable

Not applicable.

Item 3. Key Information

A. Selected Financial Data

The following combined financial data should be read in conjunction with our combined financial statements included in this information statement. The selected combined financial data as of September 30, 2015, December 31, 2014 and 2013 and January 1, 2013 and for the nine months ended September 30, 2015 and 2014 (unaudited) and for the years ended December 31, 2014 and 2013 are derived from our combined financial statements included in this information statement. The audited combined financial statements represent Enersis Chile’s first publication of financial statements prepared in accordance with IFRS, as issued by the IASB.

Amounts are expressed in millions, except for operating data. For the convenience of the reader, all data presented in U.S. dollars, as of and for the nine months ended September 30, 2015 and as of and for the year ended December 31, 2014, has been converted at the U.S. dollar Observed Exchange Rate (dólar observado) for September 30, 2015 of Ch$ 698.72 per US$ 1.00. The Observed Exchange Rate, which is reported and published daily on the Central Bank of Chile’s web page, corresponds to the weighted average exchange rate of the previous business day’s transactions in the Formal Exchange Market.

For more information concerning historical exchange rates, see “ — Exchange Rates” below.

19

The following tables set forth our selected combined financial and other operating data for the periods indicated:

	Nine months ended September 30,									Year ended December 31,
	2015(1)			2015			2014			2014(1)			2014			2013
	(US$ millions)			(Ch$ millions)						(US$ millions)			(Ch$ millions)
							(unaudited)
COMBINED STATEMENT OF INCOME DATA
Revenues and other operating income		2,522			1,762,199			1,498,862			2,933			2,049,065			1,738,083
Operating expenses(2)		(2,058	)		(1,437,826	)		(1,272,427	)		(2,385	)		(1,666,315	)		(1,346,460	)
Operating income		464			324,373			226,435			548			382,750			391,623
Financial income (expense), net		(120	)		(83,785	)		(59,542	)		(96	)		(67,045	)		(56,363	)
Total gain on sale of non-current assets not held for sale		10			6,694			47,755			101			70,893			14,528
Other non-operating income		11			7,483			7,729			(78	)		(54,353	)		24,309
Income before income tax		365			254,765			222,377			476			332,247			374,097
Income tax		(82	)		(57,497	)		(102,595	)		(190	)		(132,687	)		(61,712	)
Net income		282			197,268			119,782			286			199,559			312,385
Net income attributable to the parent company		214			149,907			96,244			233			162,459			229,527
Net income attributable to non-controlling interests		68			47,361			23,538			53			37,100			82,858

	As of September 30,				As of December 31,						As of January 1,
	2015(1)		2015		2014(1)		2014		2013		2013
	(US$ millions)		(Ch$ millions)		(US$ millions)		(Ch$ millions)
COMBINED STATEMENT OF FINANCIAL POSITION DATA
Total assets		7,370		5,149,298		7,337		5,126,735		4,820,392		4,618,431
Non-current liabilities		1,793		1,252,992		1,607		1,122,585		826,478		922,191
Equity attributable to the parent company		3,618		2,527,956		3,538		2,472,201		2,438,837		2,457,765
Equity attributable to non-controlling interests		843		589,113		876		611,864		626,947		605,552
Total equity		4,461		3,117,070		4,414		3,084,066		3,065,784		3,063,317
OTHER COMBINED FINANCIAL DATA
Capital expenditures (CAPEX)(3)		362		252,814		281		196,932		128,239		143,880
Depreciation, amortization and impairment losses(4)		168		117,309		203		141,623		127,720		126,265

(1) Solely for the convenience of the reader, Chilean peso amounts have been converted into U.S. dollars at the exchange rate of Ch$ 698.72 per U.S. dollar, as of September 30, 2015.

(2) Operating expenses include selling and administration expense.

(3) CAPEX figures represent effective payments for each year.

(4) For further detail please refer to Notes 9C and 30 of the Notes to our interim combined financial statements.

The nine months ended September 30, 2014 and the year ended December 31, 2014 net income presented above are based on our combined financial statements, which were prepared in accordance with IFRS as issued by the IASB. These figures would differ from the net income that would have been included in our statutory combined financial statements, if they had been filed with the SVS. This is due to the fact that our statutory combined financial statements would have been prepared in accordance with the SVS guidelines and instructions, which are composed of the IFRS as issued by the IASB and supplemental instructions from the SVS, which require that the effects of the enacted Chilean tax reform on deferred taxes to be recognized in retained earnings

20

instead of the income statement as required under IFRS. As of December 31, 2014, the only SVS instruction that conflicts with IFRS is related to the effects of the Chilean tax reform that consisted in an increase in net deferred tax liabilities. This conflict has one-time effect during the year of its application, 2014, in which the net income differs depending on their preparation guidance (IFRS as issued by the IASB or SVS guidelines).

The following table sets forth the main differences in net income attributable to the parent company for the year ended December 31, 2014 and the nine months ended September 30, 2014 that were recorded:

	Year ended December 31, 2014		Nine months ended September 30, 2014
			(unaudited)
	(Ch$ millions)		(Ch$ millions)
Combined Financial Statements under IFRS		162,459		96,244
Statutory Financial Statements (SVS)		205,377		134,677

	As of and for the nine months ended September 30,						As of and for the year ended December 31,
	2015			2014			2014			2013			2012			2011			2010
OPERATING DATA OF COMBINED ENTITIES
Chilectra
Electricity sold (GWh)		11,943			11,783			15,690			15,140			14,433			13,685			13,086
Number of customers (thousands)		1,772			1,727			1,737			1,694			1,659			1,638			1,610
Total energy losses (%)(1)		5.5	%		5.5	%		5.3	%		5.3	%		5.4	%		5.5	%		5.8	%
Endesa Chile
Installed capacity (MW)(2)		6,351			6,351			6,351			5,571			5,571			5,221			5,221
Generation (GWh)(2)		13,382			12,995			18,063			19,438			19,194			19,296			19,096

(1) Energy losses are calculated as the difference between total energy purchased (GWh of electricity demand, including own generation) and the energy sold (GWh), within a given period. Losses are expressed as a percentage of total energy purchased. Losses in distribution arise from illegally tapped energy as well as technical losses.

(2) The 2014 and 2015 data includes the capacity and generation of GasAtacama, as a result of its combination. Prior to 2014, GasAtacama was excluded.

Exchange Rates

Fluctuations in the exchange rate between the Chilean peso and the U.S. dollar will affect the U.S. dollar equivalent of the peso price of our shares of common stock on the Santiago Stock Exchange(Bolsa de Comercio de Santiago), the Chilean Electronic Stock Exchange (Bolsa Electrónica de Chile) and the Valparaíso Stock Exchange (Bolsa de Corredores de Valparaíso). These exchange rate fluctuations will likely affect the price of our future ADSs and the conversion of cash dividends relating to the common shares represented by future ADSs from Chilean pesos to U.S. dollars. In addition, to the extent that significant financial liabilities of the Company are denominated in foreign currencies, exchange rate fluctuations may have a significant impact on earnings.

In Chile, there are two currency markets, the Formal Exchange Market (Mercado Cambiario Formal) and the Informal Exchange Market (Mercado Cambiario Informal). The Formal Exchange Market is comprised of banks and other entities authorized by the Central Bank of Chile. The Informal Exchange Market is comprised of entities that are not expressly authorized to operate in the Formal Exchange Market, such as certain foreign exchange houses and travel agencies, among others. The Central Bank of Chile has the authority to require that certain purchases and sales of foreign currencies be carried out on the Formal Exchange Market. Both the Formal

21

and Informal Exchange Markets are driven by free market forces. Current regulations require that the Central Bank of Chile be informed of certain transactions and they must be carried out through the Formal Exchange Market.

The U.S. dollar Observed Exchange Rate, which is reported by the Central Bank of Chile and published daily on its web page, is the weighted average exchange rate of the previous business day’s transactions in the Formal Exchange Market. Nevertheless, the Central Bank of Chile may intervene by buying or selling foreign currency on the Formal Exchange Market to attempt to maintain the Observed Exchange Rate within a desired range.

The Informal Exchange Market reflects transactions carried out at an informal exchange rate (the “Informal Exchange Rate”). There are no limits imposed on the extent to which the rate of exchange in the Informal Exchange Market can fluctuate above or below the Observed Exchange Rate. Foreign currency for payments and distributions with respect to the ADSs may be purchased either in the Formal or the Informal Exchange Market, but such payments and distributions must be remitted through the Formal Exchange Market.

The Federal Reserve Bank of New York does not report a noon buying rate for Chilean pesos. As of November 30, 2015, the U.S. dollar Observed Exchange Rate was Ch$ 711.20 per US$ 1.00.

The following table sets forth the low, high, average and period-end Observed Exchange Rate for U.S. dollars for the periods set forth below, as reported by the Central Bank of Chile:

	Daily Observed Exchange Rate (Ch$ per US$)(1)
	Low(2)		High(2)		Average(3)		Period-end
Year ended December 31,
2014		527.53		621.41		573.70		606.75
2013		466.50		533.95		498.83		524.61
2012		469.65		519.69		486.31		479.96
2011		455.91		533.74		483.45		519.20
2010		468.01		549.17		510.38		468.01
Month ended
November 2015		688.94		715.66		n.a.		711.20
October 2015		673.91		695.53		n.a.		690.32
September 2015		676.74		705.92		n.a.		698.72
August 2015		676.43		706.24		n.a.		695.25
July 2015		636.39		672.19		n.a.		671.11
June 2015		621.69		639.04		n.a.		639.04

Source: Central Bank of Chile.

(1) Nominal figures.

(2) Exchange rates are the actual low and high, on a day-by-day basis for each period.

(3) The average of the exchange rates on the last day of each month during the period.

Calculation of the appreciation or devaluation of the Chilean peso against the U.S. dollar in any given period is made by determining the percent change between the reciprocals of the Chilean peso equivalent of US$ 1.00 at the end of the preceding period and the end of the period for which the calculation is being made. For example, to calculate the devaluation of the Chilean peso for 2015, through September 30, one determines the percent change between the reciprocal of Ch$ 606.75 (the value of one U.S. dollar as of December 31, 2014) and the reciprocal of Ch$ 698.72 (the value of one U.S. dollar as of September 30, 2015). In this example, the percentage change between��0.001648 (the reciprocal of Ch$ 606.75) and 0.001431 (the reciprocal of Ch$ 698.72) is negative 13.2%, which represents the nine-month 2015 devaluation of the Chilean peso against the 2014 year-end U.S. dollar. A positive percentage change means that the Chilean peso appreciated against the U.S. dollar, while a negative percentage change means that the Chilean peso devaluated against the U.S. dollar.

22

The following table sets forth the period-end rates for U.S. dollars for the nine months ended September 30, 2015 and 2014 and the years ended December 31, 2010 through 2014, based on information published by the Central Bank of Chile.

	Ch$ per US$(1)
	Period End		Appreciation (Devaluation)
	(in Ch$)		(in %)
Nine months ended September 30,
2015		698.72		(13.2	)
2014		599.22		(12.5	)
Year ended December 31,
2014		606.75		(13.5	)
2013		524.61		(8.5	)
2012		479.96		8.2
2011		519.20		(9.9	)
2010		468.01		8.4

Source: Central Bank of Chile.

(1) Calculated based on the variation of period-end exchange rates.

B. Capitalization and Indebtedness.

The following table sets forth our combined capitalization and indebtedness as of September 30, 2015 on an actual basis, and as adjusted to give effect to the completion of the Spin-Off. This information should be read in conjunction with our combined financial statements and the related notes thereto as of September 30, 2015, as well as information included elsewhere in this information statement, including information in “Item 5A. Operating Results” and “Item 5B. Liquidity and Capital Resources.”

The information below is not necessarily indicative of Enersis Chile’s future capitalization or indebtedness.

	As of September 30, 2015
	Enersis Chile		As Adjusted
	(in millions of Ch$)
Short term debt(1):
Bank loans		589		589
Unsecured liabilities		19,020		19,020
Finance leases		1,775		1,775
Total		21,385		21,385
Long term debt(1):
Unsecured liabilities		798,286		798,286
Finance leases		18,987		18,987
Total		817,273		817,273
Total Debt		838,657		838,657
Equity attributable to the parent company		2,527,956		2,433,803
Non-controlling interest		589,113		535,641
Total Capitalization		3,955,726		3,808,101

(1) Includes debt payable to third parties before the effect of derivatives. For further detail please refer to Note 20 of the Notes to our interim combined financial statements.

23

C. Reasons for the Offer and Use of Proceeds.

Not applicable.

D. Risk Factors.

Risks Related to Our Business

A financial or other crisis in any region worldwide can have a significant impact in Chile, and consequently, may adversely affect our operations as well as our liquidity.

Chile is vulnerable to external shocks, including financial and political events, which could cause significant economic difficulties and affect its growth. If the Chilean economy experiences lower than expected economic growth or a recession, it is likely that some of our customers may experience difficulties paying their electric bills, possibly increasing our uncollectible accounts. Any of these situations could adversely affect our results of operations and financial condition.

Financial and political crises in other parts of the world could also adversely affect our business. For example, instability in the Middle East or in other oil producing regions could result in higher fuel prices worldwide, which in turn could increase the cost of fuel for our thermal generation plants and adversely affect our results of operations and financial condition.

In addition, an international financial crisis and its disruptive effects on the financial industry could adversely impact our ability to obtain new bank financings on the same historical terms and conditions. A financial crisis could also diminish our ability to access the capital markets in Chile, as well as the international capital markets, for other sources of liquidity, or increase the interest rates available to us. Reduced liquidity could, in turn, adversely affect our capital expenditures, our long-term investments and acquisitions, our growth prospects and our dividend payout policy.

Chilean economic fluctuations could affect our results of operations and financial condition as well as the value of our securities.

All of our operations are located in Chile. Accordingly, our combined revenues may be affected by the performance of the Chilean economy. If local, regional or worldwide economic trends adversely affect the Chilean economy, our financial condition and results from operations could be adversely affected. Moreover, insufficient cash flows for our combined entities could result in their inability to meet debt obligations and the need to seek waivers to comply with restrictive debt covenants.

Considering that we only have investments in Chile and the electricity business closely tracks GDP fluctuations, our financial condition and results of operations are strictly dependent on the Chilean economic performance. According to the Latin American Consensus Forecast published by Consensus Economics Inc. on September 14, 2015, in 2014, Chilean GDP increased by 1.9% compared to a 4.2% in 2013, while in 2015, it is forecasted to grow by 2.2% and in 2016 by 2.6%.

During 2015, the Chilean economy has been affected mainly by the economic uncertainty derived from the global contraction in several commodities markets, such as copper, which has affected the exchange rate evolution, as well as the several law reforms still under discussion by the Chilean authorities (tax, labor, education, among others), and the possibility of a reform to the Chilean Constitution.

Future adverse developments in Chile may impair our ability to execute our strategic plans, which could adversely affect our results of operations and financial condition. In addition, Chilean financial and securities markets are influenced by economic and market conditions in other countries and may be adversely affected by events in other countries, which could adversely affect the value of our securities.

24

To a certain degree, Chile has registered certain economic interventionist measures by governmental authorities, which may adversely affect our business and financial results.

The Chilean government has exercised in the past, and continues to exercise, a substantial influence over many aspects of the private sector, which may result in changes to economic or other policies. For example, in September 2014, the Chilean government approved the progressive increase of the corporate income tax and a change in the tax system, which may have an additional negative effect upon non-Chilean holders of shares or ADSs. In addition, taxes may be due on accrued dividends prior to their payments depending on the tax mechanism elected. Recently, different social and economic agents in the country have pressed for a more simple taxation system. As a consequence, there are currently internal discussions on whether to amend some of the taxation rules in force. Governmental actions could involve wage, price and tariff rate controls and other interventionist measures, such as expropriation or nationalization.

Changes in the policies of these governmental and monetary authorities regarding tariffs, exchange controls, regulations and taxation could reduce our profitability. Inflation, devaluation, social instability and other political, economic or diplomatic developments, including the response by governments in the region to these circumstances, could also reduce our profitability. Any of these scenarios could adversely affect our results of operations and financial condition.

Our electricity business is subject to risks arising from natural disasters, catastrophic accidents and acts of terrorism, which could adversely affect our operations, earnings and cash flow.

Our primary facilities include power plants and distribution assets, pipelines, liquefied natural gas (“LNG”) terminals and re-gasification plants, storage and chartered LNG tankers. Our facilities may be damaged by earthquakes, flooding, fires, and other catastrophic disasters arising from natural or accidental human causes, as well as acts of terrorism. A catastrophic event could cause disruptions in our business, significant decreases in revenues due to lower demand or significant additional costs to us not covered by our business interruption insurance. There may be lags between a major accident or catastrophic event and the final reimbursement from our insurance policies, which typically carry a deductible and are subject to per event policy maximums.

As an example, on February 27, 2010, Chile experienced a major earthquake in the Bío-Bío region, with a magnitude of 8.8 on the Richter scale, followed by a very destructive tsunami. Our Bocamina I and Bocamina II thermal generation units, which are located near the epicenter, sustained significant damage as a result of the earthquake. More recently, on September 16, 2015, Chile experienced an 8.3-magnitude earthquake in the Coquimbo region, followed by a tsunami, though there was no significant damage to any of our power facilities.

We are subject to financing risks, such as those associated with funding our new projects and capital expenditures, and risks related to refinancing our maturing debt; we are also subject to debt covenant compliance, all of which could adversely affect our liquidity.

As of September 30, 2015, our combined debt totaled Ch$ 942 billion (net of currency hedging instruments).

Our debt had the following maturity profile:

• Ch$ 31 billion in 2016;

• Ch$ 109 billion from 2017 to 2018;

• Ch$ 49 billion from 2019 to 2020; and

• Ch$ 752 billion thereafter.

Some of our debt agreements are subject to (1) financial covenants, (2) affirmative and negative covenants, (3) events of default, (4) mandatory prepayments for contractual breaches, and (5) certain change of control

25

clauses for material mergers and divestments, among other provisions. A significant portion of our combined entities’ financial indebtedness is subject to cross default provisions, which have varying definitions, criteria, materiality thresholds and applicability with respect to combined entities that could give rise to such a cross default.

In the event that we or our combined entities breach any of these material contractual provisions, our creditors and bondholders may demand immediate repayment, and a significant portion of our indebtedness could become due and payable. We may be unable to refinance our indebtedness or obtain such refinancing on terms acceptable to us. In the absence of such refinancing, we could be forced to dispose of assets in order to make the payments due on our indebtedness under circumstances that might not be favorable to obtaining the best price for such assets. Furthermore, we may be unable to sell our assets quickly enough, or at sufficiently high prices, to enable us to make such payments.

We may also be unable to raise the necessary funds required to finish our projects under development or under construction. Market conditions prevailing at the moment we require these funds or other unforeseen project costs can compromise our ability to finance these projects and expenditures.

Our inability to finance new projects or capital expenditures or to refinance our existing debt could adversely affect our results of operation and financial condition.

We may be unable to enter into suitable investments, alliances and acquisitions.

On an ongoing basis, we review acquisition prospects that may increase our market coverage or supplement our existing businesses, though there can be no assurance that we will be able to identify and consummate suitable acquisition transactions in the future. The acquisition and integration of independent companies that we do not control is generally a complex, costly and time-consuming process and requires significant efforts and expenditures. If we consummate an acquisition, it could result in the incurrence of substantial debt and assumption of unknown liabilities, the potential loss of key employees, amortization expenses related to tangible assets and the diversion of management’s attention from other business concerns. In addition, any delays or difficulties encountered in connection with acquisitions and the integration of multiple operations could have a material adverse effect on our business, financial condition or results of operations.

Because our generation business depends heavily on hydrological conditions, droughts and climate change may adversely affect our operations and profitability.

Approximately 54.6% of our combined installed generation capacity as of September 30, 2015 was hydroelectric. Accordingly, extreme hydrological conditions and climate change could adversely affect our business, results of operations and financial condition. In the last few years before 2015, Chilean hydrological conditions have been affected by the La Niña climate phenomenon that influences rainfall, resulting in droughts. In addition, the ongoing drought in Chile not only reduced our ability to operate our hydroelectric plants at full capacity, but also resulted in increased number of disputes with both the Chilean government and local farmers over water use. As a result of such disputes, Endesa Chile has entered into agreements with both the Chilean government and the farmers that further restrict its ability to use water for hydroelectric generation. If drought conditions persist or become worse, we may face increased pressure by the Chilean government or other third parties to further restrict our water use.

Droughts also affect the operation of our thermal plants, including our facilities that use natural gas, fuel oil or coal as fuel, in the following manner:

• During drought periods, thermal plants are used more frequently. Thermal plant operating costs can be considerably higher than those of hydroelectric plants. Our operating expenses increase during these periods. In addition depending on our commercial obligations, we may have to buy electricity at spot

26

prices in order to meet our contractual supply obligations and the cost of these electricity purchases may exceed the price at which we sell contracted electricity, thus potentially producing losses from those contracts.

• Our thermal plants require water for cooling and droughts not only reduce the availability of water, but also increase the concentration of chemicals, such as sulfates in the water. The high concentration of chemicals in the water we use for cooling increases the risk of damaging the equipment at our thermal plants as well as the risk of violating environmental regulations. As a result, we have had to purchase water from agricultural areas that are also experiencing shortages of water. These water purchases may increase our operating costs and also require us to further negotiate with the local communities.

• Thermal power plants burning gas generate emissions such as sulfur dioxide (SO₂) and nitrogen oxide (NOx) gases. When operating with diesel, they also release particulate matter into the atmosphere. Coal fired plants generate emissions of SO₂ and NO₂. Therefore, greater use of thermal plants during periods of drought increases the risk of producing a higher level of pollutants.

In addition, according to certain weather forecast models, the drought that is affecting the regions where most of our hydroelectric plants are located may last for an extended period and may recur in the future. A prolonged drought will exacerbate the risks described above and have a further adverse effect upon our business, results of operations and financial condition.

Governmental regulations may adversely affect our business.

We are subject to extensive regulation on the tariffs we charge to our customers and on other aspects of our business, and these regulations may adversely affect our profitability. For example, the Chilean government can impose electricity rationing during droughts or prolonged failures of power facilities. During rationing, if we are unable to generate enough electricity to comply with our contractual obligations, we may be forced to buy electricity at the spot price, as even a severe drought does not release us from our contractual obligations as aforce majeure event. The spot price may be significantly higher than our costs to generate the electricity and can be as high as the “cost of failure” set by the Chilean National Energy Commission (Comisión Nacional de Energíaor “CNE”). This “cost of failure,” which is updated semiannually by the CNE, is a measurement of how much final users would pay for one extra MWh under rationing conditions. If we are unable to buy enough electricity at the spot price to comply with our contractual obligations, we would have to compensate our regulated customers for the electricity we failed to provide at the rationed price. Rationing periods have occurred in the past and may occur in the future. Our generation combined entities may be required to pay regulatory penalties if they fail to provide adequate service under their contractual obligations. Material rationing policies imposed by Chilean regulatory authorities could adversely affect our business, results of operations and financial condition.

The distribution tariff review process, or tariff adjustments determined by Chilean governmental authorities may be insufficient to pass through our costs. Similarly, electricity regulations issued by governmental authorities in Chile may affect the ability of our generation companies to collect revenues sufficient to offset their operating costs.

The inability of any company in our combined group to collect revenues sufficient to cover operating costs may affect the ability of that company to operate as a going concern and may otherwise have an adverse effect on our business, financial results and operations.

In addition, changes in the regulatory framework are often submitted to the legislators and administrative authorities and, some of these changes could have a material adverse impact on our business and affect our results. For instance, in 2005 there was a change in the water rights’ law in Chile that requires us to pay for unused water rights. In addition, the Chilean government is initiating a review of the current energy policies through an energy agenda presented in May 2014. These changes could adversely affect our business, results of operations and financial condition.

27

Our business and profitability could be adversely affected if water rights are denied or if water concessions are granted with limited duration.

Approximately 54.6% of our installed capacity is hydroelectric. We own water rights granted by the Chilean Water Authority (Dirección General de Aguas or “DGA”) for the supply of water from rivers and lakes near our production facilities. Under current law, these water rights are (i) for unlimited duration, (ii) absolute and unconditional property rights and (iii) not subject to further challenge. Chilean generation companies must pay an annual license fee for unused water rights. New hydroelectric facilities are required to obtain water rights, the conditions of which may impact design, timing or profitability of a project.

In addition, the Chilean Congress is currently discussing amendments to the Water Code in order to prioritize the use of water by defining its access as a human right that must be guaranteed by the State. The amendment will establish that water use for human consumption, domestic subsistence and sanitation will always take precedence, in both the granting and limiting the exercise of rights of exploitation. Under the proposal: (i) water use concessions would be limited to 30 years, which would be extendable with respect to water rights actually used during the 30-year period, unless the Chilean Water Authority demonstrates the water rights have not been used effectively; (ii) new non-consumptive water rights would expire if the holder does not exercise the rights within eight years; and (iii) existing non-consumptive water rights and have not been used would expire within 8 years from the date of enactment of the new Water Code. Any limitations on our current water rights, our need for additional water rights, or our current unlimited duration of water concessions could have a material adverse effect on our hydroelectric development projects and our profitability.

Regulatory authorities may impose fines on our combined entities, which could adversely affect our results of operations and financial condition.

Our electricity businesses may be subject to regulatory fines for any breach of current regulations, including energy supply failures. In Chile, such fines may be imposed for a maximum of 10,000 Annual Tax Units (Unidades Tributarias Anuales or “UTA”), or Ch$ 5.3 billion using the UTA and foreign exchange rate as of September 30, 2015. Our electricity generation combined entities are supervised by local regulatory entities and may be subject to these fines in cases where, in the opinion of the regulatory entity, operational failures affecting the regular energy supply to the system are the fault of the company such as when agents are not coordinated with the system operator. In addition, our combined entities may be required to pay fines or compensate customers if those combined entities are unable to deliver electricity, even if such failure is due to forces outside of the combined entities’ control.

For example, in 2011, the Chilean Superintendence of Electricity and Fuels (Superintendencia de Electricidad y Combustibles or “SEF”) imposed 1,947 UTA (approximately Ch$ 1,033 million) in fines on Endesa Chile, Pehuenche and Chilectra due to a blackout that occurred in the Santiago metropolitan region in March 2010. More recently, and as of the date of this information statement, Chilectra has been fined in three different occasions by the electricity authority for a total amount of Ch$ 2,549 million, mainly due to regulatory breaches in relation to safety procedures and delay in the replenishment of supply and attention to users’ calls during a front of bad weather that occurred in July 2015. Those penalties have not been paid yet, since they were claimed before the electricity authority and courts of justice. For further information on fines, please refer to Note 37 of the Notes to our interim combined financial statements.

We depend in part on payments from our combined entities, jointly-controlled entities and associates to meet our payment obligations.

In order to pay our obligations, we rely partly on cash from dividends, loans, interest payments, capital reductions and other distributions from our combined entities. The ability of our combined entities to pay dividends, interest payments, loans and other distributions to us is subject to legal constraints such as dividend restrictions, fiduciary duties and contractual limitations that may be imposed by local authorities.

28

Historically, we have been able to access the cash flows of our combined entities, but future economic and political uncertainties, such as government regulations, economic conditions and credit restrictions, could affect our future results from operations, and therefore we may not be able to rely on cash flows from operations in those entities to repay our debt.

Dividend Limits and Other Legal Restrictions. The ability of any of our combined entities that are not wholly-owned to distribute cash to us may be limited by the directors’ fiduciary duties of such combined entities to their minority shareholders. Furthermore, some of our combined entities may be forced by law, in accordance with applicable regulation, to diminish or eliminate dividend payments. As a consequence of such restrictions, our combined entities could, under certain circumstances, be impeded from distributing cash to us.

Contractual Constraints. Distribution restrictions included in certain credit agreements of our combined entities may prevent dividends and other distributions to shareholders if they are not in compliance with certain financial ratios. Generally, our credit agreements prohibit any type of distribution if there is an ongoing default.

Operating Results of Our Combined Entities. The ability of our combined entities to pay dividends or make loan payments or other distributions to us is limited by their operating results. To the extent that the cash requirements of any of our combined entities exceed their available cash, the combined entity will not be able to make cash available to us.

Any of the situations described above could adversely affect our business, results of operations and financial condition.

Foreign exchange risks may adversely affect our results and the U.S. dollar value of dividends payable to ADS holders.

The Chilean peso has been subject to devaluations and appreciations against the U.S. dollar and may be subject to significant fluctuations in the future. Historically, a significant portion of our combined indebtedness has been denominated in U.S. dollars. Although a substantial portion of our operating cash flows is linked to U.S. dollars (primarily coming from the generation business), we generally have been and will continue to be materially exposed to fluctuations of the Chilean peso against the U.S. dollar because of time lags and other limitations to peg our tariffs to the U.S. dollar.

A substantial portion of our operating cash flows is linked to U.S. dollars, and we seek to maintain debt in the same currency, but due to market conditions it may not be possible to do so. Because of this exposure, the cash generated by our combined entities can decrease substantially due to devaluations against the U.S. dollar. Future volatility in the exchange rate of the currency in which we receive revenues or incur expenditures may adversely affect our business, results of operations and financial condition.

We are involved in litigation proceedings.

We are currently involved in various litigation proceedings, which could result in unfavorable decisions or financial penalties against us. We will continue to be subject to future litigation proceedings, which could cause material adverse consequences to our business.

For example, in August 2014, the Chilean Superintendence of Environment (“SMA” in its Spanish acronym) fined Endesa Chile 8,640 UTAs (approximately Ch$ 4.6 billion) for alleged environmental violations related to the Bocamina II power plant. Endesa Chile appealed the fine and in March 2015, the Environmental Court of Valdivia partially voided the fine, but ordered the SMA to consider additional aggravating circumstances in re-calculating the amount of the fine. Endesa Chile appealed that decision to the Supreme Court, which appeal is currently pending. Nevertheless, a provision for this fine was included in our combined financial statements since the beginning of this litigation proceeding. Our financial condition or results of

29

operations could be adversely affected if we are unsuccessful in defending this litigation or other lawsuits and proceedings against us. For further information on litigation proceedings, please see Note 36.3 of the Notes to our interim combined financial statements.

The values of our generation business’s combined entities’ long-term energy supply contracts are subject to fluctuations in the market prices of certain commodities and other factors.

We have economic exposure to fluctuations in the market prices of certain commodities as a result of the long-term energy sales contracts into which we have entered. We and our combined entities have material obligations as selling parties under long-term fixed-price electricity sales contracts. Prices in these contracts are indexed according to different commodities, the exchange rate, inflation, and the market price of electricity. Adverse changes to these indices would reduce the rates we charge under our long-term fixed-price electricity sales contracts, which could adversely affect our business, results of operations and financial condition.

Our controlling shareholder will exert a substantial influence over us and may have a strategic view for our development different from that of our minority shareholders.

After the completion of the Spin-Off, Enel will beneficially own 60.6% of our share capital. Our controlling shareholder will have the power to determine the outcome of substantially all material matters that require shareholder votes, such as the election of the majority of our board members and, subject to contractual and legal restrictions, our dividend policy. Enel will also exercise decisive influence over our business strategy and operations. Its interests may in some cases differ from those of our minority shareholders. For example, Enel conducts its renewable energies business in South America through Enel Green Power S.p.A. (“EGP”) and the Argentine, Brazilian, Colombian and Peruvian electricity business through Enersis Américas, in neither of which we will have equity interests. Enel currently owns 68% of EGP and eventually could increase its ownership up to 100% according to recent announcements. Enel may prefer to grow in the renewable energies through EGP and not through us, especially after increasing its ownership stake. Enel has recently committed that if the Reorganization is completed in all respects, it will, or will direct one or more of its subsidiaries, to negotiate an agreement with Endesa Chile for joint investments in renewable energy projects in Chile. However, we do not know whether such initiatives will prosper, and even if they do prosper, whether NCRE growth will be channeled to a greater degree through other vehicles and not through us. Any present or future conflict of interest affecting Enel may be resolved against our best interests in these matters. As a consequence, our growth may be potentially limited, and our business and results of operations may be adversely affected.

Environmental regulations and other factors may cause delays, impede the development of new projects or increase the costs of operations and capital expenditures.

Our operating combined entities are subject to environmental regulations which, among other things, require us to perform environmental impact studies for future projects and obtain permits from both local and national regulators. The approval of these environmental impact studies may take longer than planned and may be withheld by governmental authorities. Local communities and ethnic and environmental activists, among others, may intervene in the approval process to delay or prevent a project’s development. They may also seek injunctive or other relief, which could negatively impact us if they are successful.

Environmental regulations for existing and future generation capacity may become stricter, requiring increased capital investments. For example, Decree 13 of the Chilean Ministry of the Environment, promulgated in January 2011 and published in June 2011, defined stricter emission standards for thermoelectric plants that must be met between 2014 and 2016, and stricter standards for new facilities or additional capacity. This regulation also requires the establishment of a system of continuous emission monitoring, pursuant to which thermoelectric plants must implement a monitoring system in accordance with the guidelines and protocols issued by the Chilean Superintendence of the Environment. Failure to certify the implementation of such monitoring system may result in penalties and sanctions. In September 2014, the Chilean government enacted

30

Law 20,780 (a tax reform law), which established an annual tax on stationary power generators, such as thermal generators, tied to their emission of pollutants for the previous year. When this provision of the law enters into force in 2018, it will apply to generators with a capacity of at least 50 MW. In compliance with these Chilean environmental regulations, all thermal plants are expected to incur in incremental investments so as to comply with the new regulations by installing abatement systems to control pollutant emissions. Any delay in the filing may constitute a violation of the regulations which established emission limits effective on June 23, 2015 or June 23, 2016 depending on the plant’s location.

In 2009, we presented our 740 MW coal-fueled Punta Alcalde project for environmental approval in Chile. In 2012, the regional environmental authority rejected the project and we appealed to the Council of Ministers. The Council unanimously reversed the decision of the environmental authority, and issued an environmental qualification resolution (“RCA” in its Spanish acronym) in December 2012. However, the Court of Appeals accepted four injunctions against us in early 2013. In January 2014, the Chilean Supreme Court ruled that the project could proceed but imposed several conditions in the RCA, including steps to improve air quality in the nearby town of Huasco. In addition, the Chilean Supreme Court requested certain environmental evaluations (including an evaluation for the transmission line). In light of the changes requested by the Chilean Supreme Court, we concluded that major modifications to the approved RCA were needed in order to make the Punta Alcalde project economically sustainable. On January 29, 2015, we decided to stop the development of the project and the associated Punta Alcalde - Maitencillo transmission project. As a consequence, we recorded a Ch$ 12,582 million impairment loss that affected Endesa Chile’s 2014 net income by Ch$ 9,184 million.

In addition to environmental matters, there are other factors that may adversely affect our ability to build new facilities or to complete projects currently under development on time, including delays in obtaining regulatory approvals, shortages or increases in the price of equipment, materials or labor, strikes, adverse weather conditions, natural disasters, civil unrest, accidents, or other unforeseen events. Any such event could adversely impact our results of operations and financial condition.

Delays or modifications to any proposed project and laws or regulations may change or be interpreted in a manner that could adversely affect our operations or our plans for companies in which we hold investments, which could adversely affect our business, results of operations and financial condition.

Our business may be adversely affected by judicial decisions on environmental qualification resolutions for electricity projects in Chile.

The amount of time necessary to obtain an environmental qualification resolution for electricity generation or transmission projects in Chile has materially increased, primarily due to judicial decisions against such projects, environmental opposition, social criticism and government delays. This can cast doubt on the ability of a project to obtain such approval and increase the uncertainty for investing in electricity generation and transmission projects in Chile. The uncertainty is forcing companies to reassess their business strategies as the delay in the construction of electricity generation and transmission projects may result in a supply constraints over the next five or six years. If any plant within the system ceases operation unexpectedly, we could experience supply shortages in our system, which could lead to power cuts. Any such event could adversely affect our business, results of operations and financial condition.

Our power plant projects may encounter significant opposition from different groups that may delay their development, increase costs, damage our reputation and potentially result in impairment of our goodwill with stakeholders.

Our reputation is the foundation of our relationship with key stakeholders and other constituencies. If we are unable to effectively manage real or perceived issues that could negatively impact sentiments toward us, our business, results of operations and financial condition could be adversely affected.

31

The development of new and existing power plants may face opposition from several stakeholders, such as ethnic groups, environmental groups, land owners, farmers, local communities and political parties, among others, all of which may impact the sponsoring company’s reputation and goodwill. For example, since December 2013, the Bocamina II power plant has encountered substantial opposition from local fishermen’s unions that claim that our facility negatively affects marine life and causes pollution, which resulted in the interruption of the operation of the power plant for more than a year. On July 1, 2015, the Bocamina II power plant resumed operations, after the approval of a new RCA in March 2015. Such groups are sometimes financed internationally and may receive global attention. The operation of our current thermal power plants may also affect our goodwill with stakeholders, due to emissions such as particulate matter, sulfur dioxide and nitrogen oxides, which could adversely affect the environment.

Damage to our reputation may exert considerable pressure on regulators, creditors, and other stakeholders and ultimately lead to projects and operations that may not be optimal, causing our share prices to drop and hindering our ability to attract or retain valuable employees, all of which could result in an impairment of our goodwill with stakeholders.

We may be exposed to asbestos liability and additional expense related to asbestos.

Several of our facilities have asbestos present in them. We have a policy regarding asbestos control and sanitation, which includes a detailed action plan regarding the detecting the presence of asbestos, measuring air quality, ensuring the compliance with safety requirements, as well as a plan to monitor the health of workers.

In April 2015, Endesa Chile completed the removal of the identifiable asbestos from the Bocamina I power plant. However, some Akeron Caf employees, working for the contractor removing asbestos in the power plant, reported to the regional Health Ministerial Office (“Seremi” in its Spanish acronym) that their health had beem affected subsequently. According to Chilean regulations, any company that removes asbestos must present a work plan, which must be approved by the Seremi and supervised by the Workers Safety Association (“Mutal de Seguridad”) to avoid workers being contaminated with asbestos. After an investigation, in September 2015, the Seremi of the Bio-Bío region fined Endesa Chile for Ch$ 22 million because it did not record the delivery of security materials to remove asbestos on an individual basis. Endesa Chile appealed the decision, which is still pending. In addition, Endesa Chile is implementing asbestos removal plans in the Tarapacá, Huasco and Ralco power plants, which processes could also be affected by similar problems.

We may have to incur in additional costs to remediate and implement our asbestos control and sanitation policy, or be subject to legal actions against us, which in turn may have a material adverse effect on our business, results of operation and financial condition as well as our reputation.

Our business may experience adverse consequences if we are unable to reach satisfactory collective bargaining agreements with our unionized employees.

A large percentage of our employees are members of unions and have collective bargaining agreements that must be renewed on a regular basis. Our business, financial condition and results of operations could be adversely affected by a failure to reach agreement with any labor union representing such employees or by an agreement with a labor union that contains terms we view as unfavorable. Chilean law provides legal mechanisms for judicial authorities to impose a collective agreement if the parties are unable to come to an agreement, which may increase our costs beyond what we have budgeted.

In addition, we employ many highly-specialized employees, and certain actions such as strikes, walk-outs or work stoppages by these employees, could adversely impact our business, results of operations and financial condition.

32

Interruption or failure of our information technology and communications systems or external attacks to or breaches of these systems could have an adverse effect on our operations and results.

We depend on information technology, communication and processing systems (“IT Systems”) to operate our businesses, the failure of which could adversely affect our business, results of operations and financial condition.

IT Systems are all vital to our generation combined entities’ ability to monitor our power plants’ operations, maintain generation and network performance, adequately generate invoices to customers, achieve operating efficiencies and meet our service targets and standards. Our distribution combined entities could also be affected adversely because they rely heavily on IT Systems to monitor their grids, billing processes for millions of customers and customer service platforms. Temporary or long-lasting operational failures of any of these IT Systems could have a material adverse effect on our results of operations. Additionally, cyber attacks can have an adverse effect on the company’s image and its relationship with the community. In the last few years, global cyber attacks on security systems, treasury operations, and IT Systems have intensified. We are exposed to cyber-terrorist attacks aimed at damaging our assets through computer networks, cyber spying involving strategic information that may be beneficial for third parties and cyber-theft of proprietary and confidential information, including information of our customers. During 2014, we suffered two cyber attacks perpetrated by a cyber-terrorist group, which impacted our websites. In one case, the attack resulted in a service interruption of 90 minutes. Further cyber attacks may occur and may affect us in the future.

We rely on electricity transmission facilities that we do not own or control. If these facilities do not provide us with an adequate transmission service, we may not be able to deliver the power we sell to our final customers.

We depend on transmission facilities owned and operated by other unaffiliated power companies to deliver the electricity we sell. This dependence exposes us to several risks. If transmission is disrupted, or transmission capacity is inadequate, we may be unable to sell and deliver our electricity. If a region’s power transmission infrastructure is inadequate, our recovery of sales costs and profits may be insufficient. If restrictive transmission price regulation is imposed, transmission companies upon whom we rely may not have sufficient incentives to invest in expansion of their transmission infrastructure, which could adversely affect our operations and financial results. Currently, the construction of new transmission lines is taking longer than in the past, mainly because of new social and environmental requirements that are creating uncertainty about the probability of completing the projects. In addition, the increase of new non-conventional renewable energy (“NCRE”) projects is congesting the current transmission system as these projects can be built relatively quickly, while new transmission projects can take as long as seven years to be built.

On September 24, 2011, nearly 10 million people located in central Chile experienced a blackout (affecting more than half of the Chilean population), due to the failure of Transelec’s 220 kV Ancoa substation. The failure led to the disruption of two 500 kV transmission lines in the Chilean Central Interconnected System (“SIC” in its Spanish acronym) and the subsequent failure of the remote recovery computer software used by the independent entity that coordinates generators, transmission companies and large customers (“CDEC” in its Spanish acronym) to operate the grid. This blackout, which lasted two hours, exposed weaknesses in the transmission grid and its need for expansion and technological improvements to increase the reliability of the transmission grid.

Any such disruption or failure of transmission facilities could interrupt our business, which could adversely affect our results of operations and financial condition.

Lawsuits against us brought outside Chile or complaints against us based on foreign legal concepts may be unsuccessful.

All of our assets are located outside of the United States. All of our directors and officers are expected to reside outside of the United States and most of their assets are expected to be located outside the United States as

33

well. If any investor were to bring a lawsuit against our directors, officers or experts in the United States, it may be difficult for them to effect service of legal process within the United States upon these persons, or to enforce against them, in United States or Chilean courts, judgments obtained in United States courts based upon the civil liability provisions of the federal securities laws of the United States. In addition, there is doubt as to whether an action could be brought successfully in Chile on the basis of liability based solely upon the civil liability provisions of the United States federal securities laws.

Risks Related to the Spin-Off

There may not be a liquid market for our shares.

There is currently no public market for our shares. It is expected that our shares will be listed on the Chilean Stock Exchanges and our ADSs will be listed on the NYSE after the effectiveness of the Spin-Off. There can be no assurance as to the liquidity of any markets that may develop for our shares or ADSs or the price at which our shares or ADSs may trade. Also, the liquidity and the market for our shares or ADSs may be affected by a number of factors including variations in exchange and interest rates, the deterioration and volatility of the markets for similar securities and any changes in our liquidity, financial condition, creditworthiness, results and profitability and uncertainty with respect to the consummation of the Merger. As a result, the initial trading prices of our shares and ADSs may not be indicative of future trading prices. In addition, trading volumes of our shares and ADSs, in the aggregate, may be significantly less liquid than trading volumes of Enersis’ shares and ADSs before theSpin-Off.

Enersis’ historical performance may not be representative of our performance as a separate company.

Our combined financial statements are based on the historical results of operations and historical bases of the assets and liabilities of the former Chilean businesses of Enersis. Our historical performance might have been different if it had been a separate, entity during the periods presented. The historical carve-out financial information included in this information statement is not necessarily indicative of what our results of operations, financial position and cash flows will be in the future. There may be changes that will occur in our cost structure, funding and operations as a result of our separation from Enersis, including increased costs associated with reduced economies of scale, and increased costs associated with being a stand-alone publicly traded company.

We may face difficulty in financing our operations and capital expenditures following the Spin-Off, which could have an adverse impact on our business and results.

We may need to incur debt or issue additional equity in order to fund working capital and capital expenditures or to make acquisitions and other investments following the Spin-Off. There can be no assurance that debt or equity financing will be available to us on acceptable terms, if at all. As a result of the Spin-Off, it may also become more expensive for us to raise funds through the issuance of debt than it was prior to the consummation of the Spin-Off. If we are not able to obtain sufficient financing on attractive terms, it could have a material adverse effect on our business, results of operations and financial condition.

There is no guarantee that the conditions precedent to the Spin-Off will be satisfied.

The Spin-Off will not become effective unless the conditions precedent are satisfied, including the receipt of certain regulatory approvals and the absence of any order or injunction prohibiting the consummation of the Spin-Off. The conditions precedent include matters beyond the control of Enersis Américas, such as approval of the concurrent spin-off of Endesa Américas by the shareholders of Endesa Chile. There can be no assurance that such conditions precedent will be satisfied. Any delay or the inability to satisfy the conditions precedent may prevent the effectiveness of the Spin-Off.

34

The Spin-Off and the Reorganization may be subject to judicial or administrative injunctions.

AFP Habitat and AFP Capital, which are shareholders of Enersis and Endesa Chile, brought action in the Santiago Court of Appeals in order to block the Reorganization. The matter is pending resolution. It is possible that additional actions may be brought by shareholders, bondholders, regulators or others seeking to enjoin the Spin-Off or the Reorganization. Any litigation may delay the Spin-Off and the Reorganization, distract management, divert resources, result in negative publicity or otherwise negatively affect the Spin-Off and the Reorganization.

Item 4. Information on the Company

A. History and Development of the Company.

In this “History and Development of the Company” section, references (i) to “we”, “us” and “our” are to the Chilean Business of Enersis prior to the Spin-Off, and to Enersis Chile after the Spin-Off, (ii) to Endesa Chile are to the Chilean business of Endesa Chile prior to the spin-off of Endesa Américas by Endesa Chile, and to Endesa Chile after such spin-off, and (iii) to Chilectra are to the Chilean business of Chilectra prior to the spin-off of Chilectra Américas by Chilectra, and to Chilectra Chile after such spin-off.

History

We expect that we will register our common stock in Chile with the SVS and in the United States with the SEC during the first quarter of 2016.

Our contact information in Chile is:

Street Address:	Santa Rosa 76, Santiago, Código Postal 8330099, Chile
Telephone:	(56-2) 2353-4639
Web site:	www. enersischile.cl

We are primarily engaged in the generation and distribution of electricity in Chile. We trace our origins to Compañía Chilena de Electricidad Ltda. (“CCE”), which was formed in 1921 as a result of the merger of Chilean Electric Tramway and Light Co., founded in 1889, and Compañía Nacional de Fuerza Eléctrica (“CONAFE”), with operations dating back to 1919. In 1970, the Chilean government nationalized CCE. During the 1980s, the sector was reorganized through the Chilean Electricity Law, CCE’s operations were divided into one generation company, a currently unrelated company, and two distribution companies, one with a concession in the Valparaíso Region, and the other, our predecessor company, with a concession in the Santiago metropolitan region. From 1982 to 1987, the Chilean electric utility sector went through a process of re-privatization. In August 1988, our predecessor company changed its name to Enersis S.A. and became the new parent company of Distribuidora Chilectra Metropolitana S.A., later renamed Chilectra S.A. In the 1990s, we diversified into electricity generation and transmission through our increasing equity stakes in Endesa Chile.

As of September 30, 2015, we had 6,351 MW of installed capacity with 111 generation units in Chile, combined assets of Ch$ 5,149.3 billion and operating revenues of Ch$ 1,762.2 billion.

Capital Investments, Capital Expenditures and Divestitures

We coordinate our overall financing strategy, including the terms and conditions of loans and intercompany advances entered into by our combined entities, in order to optimize debt and liquidity management. Generally, our operating combined entities independently plan capital expenditures financed by internally generated funds or direct financings. One of our goals is to focus on investments that will provide long-term benefits, such as energy loss reduction projects. Although we have considered how these investments will be financed as part of our budget process, we have not committed to any particular financing structure, and investments will depend on the prevailing market conditions at the time the cash flows are needed.

35

Our investment plan is flexible enough to adapt to changing circumstances by giving different priorities to each project in accordance with profitability and strategic fit. Investment priorities are currently focused on developing additional hydroelectric and thermal capacity to guarantee adequate levels of reliable supply while remaining focused on the environment.

For the 2016-2020 period, we expect to make capital expenditures of Ch$ 1,298 billion in our combined entities, related to investments currently in progress, maintenance of our distribution network, maintenance of existing generation plants and in the studies required to develop other potential generation projects. For further detail regarding these projects please see “Item 4. Information on the Company— D. Property, Plant and Equipment— Projects Under Development.”

The table below sets forth the expected capital expenditures for the 2016-2020 period and the capital expenditures incurred by our combined entities for the nine months ended September 30, 2015 and for the years ended December 31, 2014 and 2013:

	Estimated 2016-2020		September 2015		December 2014		December 2013
	(in millions of Ch$)
Capital Expenditure(1)		1,297,938		252,814		196,932		128,239

(1) Capex amounts represent effective payments for each year, except for future projections.

Capital Expenditures for the nine months ended September 30, 2015 and the years ended December 31, 2014 and 2013

Our capital expenditures in the last three years were related principally to the 350 MW Bocamina II power plant and and the 150 MW Los Cóndores power plant. Bocamina II began commercial operations in October 2012. Subsequently, Bocamina II suspended operations in December 2013 due to environmental injunctions and reassumed operations in July 2015. Los Cóndores is a hydroelectric project, which began construction in 2014 with completion expected in 2018.

Investments currently in progress

Our material plans in progress include the 150 MW Los Cóndores project described above. Finally, we plan to continue to expand distribution services and reduce energy losses to improve the efficiency and profitability of our distribution operations in all the countries in which we operate.

Projects in progress will be financed with resources provided by external financing as well as internally generated funds for each of the projects described.

B. Business Overview.

In this “Business Overview” section, references to “we”, “us” and “our” are to the Chilean Business of Enersis prior to the Spin-Off, and to Enersis Chile after the Spin-Off.

We have combined operations in Chile. Our core businesses are electricity generation and distribution. We also participate in other activities which are not part of our core business. Since these non-core activities represent less than 1% of our 2015 revenues, we do not report them as separate business in this information statement or in our combined financial statements.

36

The table below presents our revenues by operating segment:

	Nine months ended September 30,								Year ended December 31,
Revenues	2015			2014			Change 2015 vs. 2014		2014			2013			Change 2014 vs. 2013
				(unaudited)
	(in millions of Ch$)						(in %)		(in millions of Ch$)						(in %)
Generation		1,131,407			876,113			29.14		1,220,566			959,787			27.17
Distribution		930,399			830,888			11.98		1,127,893			975,024			15.68
Other businesses and intercompany transaction adjustments		(299,607	)		(208,138	)		43.95		(299,393	)		(196,728	)		52.19
Total net revenues		1,762,199			1,498,862			17.57		2,049,065			1,738,083			17.89

For further financial information related to our businesses, see “Item 5. Operating and Financial Review and Prospects — A. Operating Results” and Note 35 of the Notes to our interim combined financial statements.

Electricity Generation Business Segment

For the nine months ended September 30, 2015, electricity generation represented 55% of our operating revenues and 67% of our operating income before combination adjustments. For the year 2014, electricity generation represented 52% of our operating revenues and 61% of our operating income before combination adjustments.

Our total installed capacity as of both September 30, 2015 and December 31, 2014, was 6,351MW, a 781 MW increase compared to December 31, 2013, due to the additional 781 MW of capacity of GasAtacama.

Our combined electricity sales for the nine months ended September 30, 2015 were 17,311 GWh and our production was 13,382 GWh, a 14.9% increase and a 2.9% increase, respectively, compared to the same period of 2014. Our combined electricity sales in 2014 were 21,157 GWh and our production was 18,063 GWh, a 3.7% increase and a 7.0% decrease, respectively, compared to 2013.

The following tables summarize the information relating to our electricity generation:

ELECTRICITY DATA⁽¹⁾

	Nine months ended September 30,				Year ended December 31,
	2015		2014		2014		2013
Number of generating units(2)(3)		111		111		111		105
Installed capacity (MW)(3)(4)		6,351		6,351		6,351		5,571
Electricity generation (GWh)		13,382		12,995		18,063		19,438
Energy sales (GWh)		17,311		15,063		21,157		20,406

(1) The 2014 and 2015 data includes GasAtacama, which has been combined since May 2014.

(2) For details on generation facilities, see “Item 4. Information on the Company — D. Property, Plant and Equipment — Property, Plant and Equipment of Generating Companies.”

(3) The Bocamina II TV2 generation unit in Chile has been combined since April 2012.

(4) Total installed capacity is defined as the maximum capacity (MW), under specific technical conditions and characteristics. In most cases, installed capacity is confirmed by satisfaction guarantee tests performed by equipment suppliers. Figures may differ from installed capacity declared to governmental authorities and customers, according to criteria defined by such authorities and relevant contracts.

37

In the electricity industry, it is common to segment the business into hydroelectric and thermoelectric generation, because each type of generation has significantly different variable costs. Thermoelectric generation requires the purchase of fuel, which leads to a high variable costs compared with hydro generation from reservoirs or rivers that have no marginal costs. Of our total combined generation in 2014, 64.0% was from hydroelectric sources, 35.1% from thermal sources, and less than 1% from wind energy, which is generated by the Canela I and Canela II wind farms, subsidiaries of Celta.

Of our total combined generation during the nine months ended September 30, 2015, 57.5% was from hydroelectric sources, 41.5% from thermal sources, and 1% from wind energy.

The following table summarizes our combined generation by type of energy:

COMBINED GENERATION BY TYPE OF ENERGY (GWh)

	Nine months ended September 30,								Year ended December 31,
	2015				2014				2014				2013
	Generation		%		Generation		%		Generation		%		Generation		%
Hydroelectric		7,699		57.5		7,831		60.5		11,561		64.0		9,889		50.9
Thermal(1)		5,552		41.5		5,021		38.6		6,344		35.1		9,404		48.4
Other generation(2)		130		1.0		143		0.8		158		0.9		145		0.7
Total generation		13,382		100		12,995		100		18,063		100		19,438		100

(1) The 2014 and 2015 data includes GasAtacama, which has been combined since May 2014.

(2) Other generation refers to the generation from the Canela and Canela II wind farms.

The potential for contracting electricity is generally related to electricity demand. Customers identified as small volume regulated customers, including residential customers, are subject to government regulated electricity tariffs, and must purchase electricity directly from a distribution company. These distribution companies, which purchase large amounts of electricity for small volume residential customers, generally enter into contractual agreements with generators at a regulated tariff price. Those identified as large volume industrial customers also enter into contractual agreements with energy suppliers. However, such large volume industrial customers are not subject to the regulated tariff price. Instead, these customers are allowed to negotiate the energy price with generators based on the characteristics of the service required. Finally, the pool market, where energy is normally sold at the spot price, is not carried out through contracted pricing.

The following table contains information regarding our combined sales of electricity by type of customer for each of the periods indicated:

ELECTRICITY SALES BY CUSTOMER TYPE (GWh)⁽¹⁾

	Nine months ended September 30,								Year ended December 31,
	2015				2014				2014				2013
	Sales		%		Sales		%		Sales		%		Sales		%
Regulated customers		13,053		75.4		11,753		78.0		15,838		74.9		14,796		72.5
Unregulated customers		3,103		17.9		2,858		19.0		4,065		19.2		4,185		20.5
Total contracted sales(2)		16,156		93.3		14,611		97.0		19,903		94.1		18,981		93.0
Electricity pool market sales		1,155		6.7		452		3.0		1,254		5.9		1,425		7.0
Total electricity sales		17,311		100		15,063		100		21,157		100		20,406		100

(1) The 2014 and 2015 data includes GasAtacama, which has been combined since May 2014.

(2) Includes the sales to distribution companies not backed by contracts.

38

Specific energy consumption limits (measured in GWh) for regulated and unregulated customers are established. Moreover, regulatory frameworks often require that regulated distribution companies have contracts to support their commitments to small volume customers and also determine which customers can purchase energy in electricity pool markets.

In terms of expenses, the primary variable costs involved in the electricity generation business, in addition to the direct variable cost of generating hydroelectric or thermal electricity such as fuel costs, are energy purchases and transportation costs. During periods of relatively low rainfall conditions, the amount of our thermal generation increases. This involves an increase of the total fuel cost and the costs of its transportation to the thermal generation power plants. Under drought conditions, electricity that we have contractually agreed to provide may exceed the amount of electricity that we are able to generate, which requires us to purchase electricity in the pool market at spot prices in order to satisfy our contractual commitments. The cost of these purchases at spot prices may, under certain circumstances, exceed the price at which we sell electricity under contracts and, therefore, may result in a loss. We attempt to minimize the effect of poor hydrological conditions on our operations in any year by limiting our contractual sales requirements to a quantity that does not exceed the estimated production in a dry year. To determine an estimated production in a dry year, we take into consideration the available statistical information concerning rainfall, hydrological levels, and the capacity of key reservoirs. In addition to limiting contracted sales, we may adopt other strategies including installing temporary thermal capacity, negotiating lower consumption levels with unregulated customers, negotiating with other water users and including pass-through cost clauses in contracts with customers.

Operations

We own and operate a total of 111 generation units through Endesa Chile, Pehuenche, Celta and GasAtacama. Of these generation units, 38 are hydroelectric, with a total installed capacity of 3,456 MW. This represents 54.4% of our total installed capacity. There are 22 thermal generation units that operate with gas, coal or oil with a total installed capacity of 2,808 MW, representing 44.2% of our total installed capacity. There are 51 wind powered generation units with an aggregate installed capacity of 87 MW representing 1.4% of our total installed capacity. All of our generation units are connected to the SIC except for two of Celta’s thermoelectric generation units and six of GasAtacama’s thermoelectric generation units which are connected to the Northern Interconnected System (“SING”) in northern Chile.

For information on the installed generation capacity for each of our combined entities, see “Item 4. Information on the Company — D. Property, Plant and Equipment.”

Our total electricity generation (including the SIC and the SING) accounted for 25.8% of total gross electricity production in Chile during 2014, 25.0% during the first nine months of 2015, and 25.8% for the first nine months of 2014.

39

The following table sets forth the electricity generation for each of our Chilean generation companies:

ELECTRICITY GENERATION BY COMPANIES (GWh)

	Nine months ended September 30,				Year ended December 31,
	2015		2014		2014		2013
Endesa Chile		7,890		7,565		10,092		11,967
Pehuenche		1,766		1,772		2,902		2,565
San Isidro(1)		—		—		—		2,546
Celta(1)		2,738		3,405		4,553		1,564
Endesa Eco(1)		—		—		—		796
GasAtacama(2)		988		253		516		—
Total		13,382		12,995		18,063		19,438

(1) The electricity generation difference from 2013to 2014 was primarily due to the merger of San Isidro into Endesa Eco on September 1, 2013, as well as the subsequent merger of Endesa Eco into Celta on November 1, 2013.

(2) GasAtacama has been combined by Endesa Chile since May 2014.

The energy equivalent in reservoirs reached 3,886 GWh in 2014, an increase of 659 GWh, or 20%, compared to 2013 (3,227 GWh).

The energy equivalent in reservoirs reached 3,721 GWh for the nine months ended September 30, 2015, an increase of 554 GWh, or 18%, compared to the same period in 2014 (3,167 GWh).

Generation by type is shown in the following table:

ELECTRICITY GENERATION BY TYPE (GWh)

	Nine months ended September 30,								Year ended December 31,
	2015				2014				2014				2013
	Generation		%		Generation		%		Generation		%		Generation		%
Hydroelectric generation		7,529		56.3		7,653		58.9		11,272		62.4		9,617		49.5
Thermal generation(1)		5,552		41.5		5,021		38.6		6,344		35.1		9,404		48.4
Wind generation–NCRE(2)		93		0.7		109		0.8		158		0.9		145		0.7
Mini-hydro generation – NCRE (3)		209		1.6		211		1.6		289		1.6		272		1.4
Total generation		13,382		100		12,995		100		18,063		100		19,438		100

(1) The 2014 and 2015 data includes GasAtacama, which has been combined since May 2014.

(2) Refers to the generation from the Canela and Canela II wind farms.

(3) Refers to the generation from Palmucho and the Ojos de Agua mini-hydroelectric plants.

Our thermal electric generation facilities use LNG, coal and to a lesser extent, diesel.

The LNG supply is the most relevant and it is based on long term agreements with the Quintero LNG Terminal (“GNLQ”), for regasification services, and British Gas for supply.

In July 2013, Endesa Chile and British Gas successfully ended the renegotiation of their LNG sale and purchase agreement. This renegotiation modified some conditions of the original contract, allowing Endesa Chile to secure its long term LNG supply at competitive prices, with significant flexibility and the addition of new capacity sufficient for its current and potential needs.

40

Endesa Chile also exercised a priority right to purchase additional regasification capacity as part of an expansion of GNLQ. This has allowed Endesa Chile to increase its regasification capacity from 3.2 million cubic meters per day to 5.4 million cubic meters per day as of the date of this information statement. This additional capacity will allow Endesa Chile’s San Isidro and Quintero facilities to provide additional thermal generation, to secure the regasification for future power plants, as well as develop new businesses, such as the tolling agreement signed with Gener during 2015, which has allowed Endesa Chile to utilize Gener’s Nueva Renca combined-cycle power plant to generate electricity with its LNG.

Endesa Chile has also contracted capacity in the LNG truck loading facility (“TLF”) in GNLQ, allowing it to sell natural gas to industrial customers. In August 2014, the first load of LNG was successfully delivered to MAERSK’s satellite regasification facility. During 2014, a 20-year sale and purchase agreement was signed with GasValpo (a gas distribution company) to distribute natural gas using the TLF for new customers in various cities in Chile. The first stage started its operations during August 2015, supplying the city of Talca (270 km south of Santiago). Other plants are currently in advanced construction and will begin operation before the end of 2015.

In January 2015 an agreement with Intergas (gas distribution company) was signed to supply LNG by trucks to the city of Temuco (700 km south of Santiago). This supply arrangement will start during first quarter of 2016.

During the nine months ended September 30, 2015, 560 kilotons of coal were consumed by the Tarapacá and Bocamina thermal power plants. Bocamina units I and II were stopped for 8 and 18 months, respectively, due to judicial issues. During this time the supply of coal from Endesa Generación S.A., Enel’s Spanish subsidiary, was deferred. The current agreement is in effect and will run through the end of 2015.

Under Chilean law, power generation companies must demonstrate that a minimum amount of their energy sales are from NCRE. Currently, our Canela wind farm, Ojos de Agua mini-hydroelectric plant and 40% of the installed capacity of our Palmucho mini-hydroelectric plant qualify as NCRE facilities. We fully complied with this obligation during 2014. The additional cost of generating electricity using NCRE facilities is being charged as a pass-through in our new contracts, which mitigates the impact to our operating income.

Total industry electricity sales in Chile increased 2.6% during 2014, with a sales increase of 2.6% in the SIC and of 2.5% in the SING, as detailed in the following table and 2.7% during the first nine months of 2015, with a sales increase of 1.3% in the SIC and of 6.9% in the SING, as detailed in the following table:

ELECTRICITY SALES PER SYSTEM (GWh)

	Nine months ended September 30,				Year ended December 31,
	2015		2014		2014		2013
Electricity sales in the SIC		37,119		36,628		49,066		47,831
Electricity sales in the SING		12,491		11,683		15,785		15,399
Total electricity sales		49,609		48,311		64,851		63,230

For the nine months ended September 30, 2015, our electricity sales reached 17,311 GWh compared to 15,063 GWh during the same period of 2014, which represented 34.9% and 31.2% market shares, respectively. The percentage of the energy purchases needed to comply with our contractual obligations to third parties increased from 13.7% as of September 30, 2014 to 22.7% as of September 30, 2015, as a consequence of the decrease of our electricity generation.

Our electricity sales reached 21,157 GWh in 2014 and 20,406 GWh in 2013, which represented 32.6% and 32.2% market shares, respectively. The percentage of energy purchases needed to comply with our contractual obligations to third parties increased from 4.7% in 2013 to 14.6% in 2014 as a consequence of the decrease of our electricity generation.

41

The following table sets forth our electricity generation and purchases:

ELECTRICITY GENERATION AND PURCHASES (GWh)⁽¹⁾

	Nine months ended September 30,								Year ended December 31,
	2015				2014				2014				2013
	(GWh)		% of Volume		(GWh)		% of Volume		(GWh)		% of Volume		(GWh)		% of Volume
Electricity generation		13,382		77.3		12,995		86.3		18,063		85.4		19,438		95.3
Electricity purchases		3,929		22.7		2,069		13.7		3,094		14.6		968		4.7
Total		17,311		100		15,063		100		21,157		100		20,406		100

(1) The 2014 and 2015 data includes GasAtacama, which has been combined since May 2014.

We supply electricity to the major regulated electricity distribution companies, large unregulated industrial firms (primarily in the mining, pulp and steel sectors) and the pool market. Commercial relationships with our customers are usually governed by contracts. Supply contracts with distribution companies must be auctioned, and are generally standardized with an average term of ten years.

Supply contracts with unregulated customers (large industrial customers) are specific to the needs of each customer, and the conditions are agreed between both parties, reflecting competitive market conditions.

During the nine months ended September 30, 2015, Endesa Chile had 41 customers, including 18 distribution companies in the SIC and 23 unregulated customers.

In 2014, our customers included 18 distribution companies in the SIC and 28 unregulated customers. Endesa Chile had 46 customers in 2014 and 50 customers in 2013.

The following table sets forth information regarding our electricity sales by type of customer:

ELECTRICITY SALES PER CUSTOMER SEGMENT (GWh)⁽¹⁾

	Nine months ended September 30,								Year ended December 31,
	2015				2014				2014				2013
	Sales		% of Sales Volume		Sales		% of Sales Volume		Sales		% of Sales Volume		Sales		% of Sales Volume
Regulated customers		13,053		75.4		11,753		78.0		15,838		74.9		14,796		72.5
Unregulated customers		3,103		17.9		2,858		19.0		4,065		19.2		4,185		20.5
Total contract sales		16,156		93.3		14,611		97.0		19,903		94.1		18,981		93.0
Electricity pool market sales		1,115		6.7		452		3.0		1,254		5.9		1,425		7.0
Total electricity sales		17,311		100		15,063		100		21,157		100		20,406		100

(1) The 2014 and 2015 data includes GasAtacama, which has been combined since May 2014.

The most significant supply contracts with regulated customers are with our combined entity Chilectra S.A. and with Compañía General de Electricidad S.A. (“CGE”), an unaffiliated entity. These are the two largest distribution companies in Chile in terms of sales.

42

The following table sets forth Endesa Chile’s public contracts with electricity distribution companies in the SIC for their regulated customers as of December 31, 2014:

	Year ended December 31,
	(in GWh)
Company		2015	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025	2026	2027
Chilectra		6,498	7,009	7,384	7,733	7,743	7,743	6,772	5,086	3,838	3,838	3,103	1,485	1,485
CGE		6,003	7,144	7,083	7,039	7,092	6,223	6,200	4,746	4,644	4,611	423	—	—
Chilquinta		1,507	1,564	1,662	1,747	1,810	1,815	1,817	1,820	1,822	1,097	340	324	—
Saesa		3,006	2,451	2,421	2,365	2,299	798	798	798	798	798	159	—	—
Total		17,013	18,167	18,550	18,885	18,944	16,580	15,588	12,450	11,102	10,344	4,026	1,809	1,485

Our generation contracts with unregulated customers are generally on a long-term basis and typically range from five to fifteen years. Such contracts are usually automatically extended at the end of the applicable term, unless terminated by either party upon prior notice. Some include a price adjustment mechanism in the case of high marginal costs, and therefore, reduces the hydrological risk. Contracts with unregulated customers may also include specifications regarding power sources and equipment, which may be provided at special rates, as well as provisions for technical assistance to the customer. We have not experienced any supply interruptions under our contracts. If we experienced a force majeure event, as defined in the contract, we are allowed to reject purchases and we have no obligation to supply electricity to our unregulated customers. Disputes are typically subject to binding arbitration between the parties, with limited exceptions.

For both the nine months ended September 30, 2015 and the year ended December 31, 2014, Endesa Chile’s principal distribution customers were (ordered alphabetically): CGE, Chilectra, Chilquinta, Emel group and Saesa group, and Endesa Chile’s principal unregulated customers were (ordered alphabetically): Caserones, Compañia Minera Carmen de Andacollo, Compañia Minera Collahuasi, Grupo CAP-Companía Minera de Pacifico and Minera Valle Central.

We compete in the SIC primarily with two generation companies, Colbún S.A. (“Colbún”) and Gener. According to the CDEC-SIC in 2014, in the SIC, Colbún had an installed capacity of 3,305 MW, of which 52.0% was thermoelectric and Gener and its subsidiaries had an installed capacity of 2,632 MW, of which 89.2% was thermoelectric, and in addition, there were a number of smaller entities with an aggregate installed capacity of 3,857 MW that generate electricity in the SIC. According to the CDEC-SIC, as of September 30, 2015, Colbún and Gener’s capacity and electricity type data were substantially the same as for December 2014. In addition, there are a number of smaller entities with an aggregate installed capacity of 4,480 MW that generate electricity in the SIC.

As of December 31, 2014, our primary competitors in the SING were E-CL (GDF Suez Group) and Gener, which have 2,147 MW and 1,465 MW of installed capacity, respectively. As of September 30, 2015, our primary competitors in the SING wereE-CL (GDF Suez Group) and Gener, which have 2,147 MW and 822 MW of installed capacity, respectively. Our direct participation in the SING includes our 182 MW Tarapacá thermal plant, owned by our combined entity Celta, and the 781 MW GasAtacama thermal plant.

Electricity generation companies compete largely on the basis of price, technical experience and reliability. In addition, because 64.3% of our installed capacity in the SIC is from hydroelectric power plants, we have lower marginal production costs than companies generating electricity through thermal plants. Our installed thermal capacity benefits from access to gas from GNLQ. However, during periods of extended droughts, we may be forced to buy more expensive electricity from thermoelectric generators at spot prices in order to comply with our contractual obligations.

Directly and through our combined entities, we are the principal generation operator in the SIC, with 35.0% of the total installed capacity and 40.0% of the electricity energy sales of this system in 2014. As of September 30, 2015, we had 34.2% of the total installed capacity and represented 41.6% of the electricity energy sales in the system.

43

In the SING, our combined entities, Celta and GasAtacama, accounted for 20.4% of the total installed capacity and 10.0% of the electricity energy sales of this system in 2014. As of September 30, 2015, Celta and GasAtacama, accounted for 23.2% of the total installed capacity and 14.9% of the electricity energy sales in the system.

Electricity Distribution Business Segment

Our electricity distribution business is conducted through Chilectra. For the nine months ended September 30, 2015, electricity sales increased by 1.3% compared to the same period of 2014, totaling 11,943 GWh. For more information on energy sales by our distribution businesses for the last five fiscal years, see “Item 3. Key Information — A. Selected Financial Data”.

Chilectra

Chilectra is one of the largest electricity distribution companies in Chile in terms of the number of regulated customers, distribution assets and energy sales. Our economic interest in Chilectra is 99.1%. Chilectra operates in a concession area of 2,105 square kilometers, under an indefinite concession granted by the Chilean government. Chilectra transmits and distributes electricity in 33 municipalities of the Santiago metropolitan region. Its service area is primarily defined as a densely populated area under the Chilean tariff regulations, which govern electricity distribution companies and includes all residential, commercial, industrial, governmental, and toll customers. The Santiago metropolitan region, the capital of Chile, is the country’s most densely populated area and has the highest concentration of industries, industrial parks and office facilities in the country. As of September 30, 2015, Chilectra distributed electricity to approximately 1.8 million customers. Its energy losses were 5.5% during the first nine months of both 2015 and 2014.

For the first nine months of 2015, residential, commercial, industrial and other customers, who are primarily public and municipal, represented 28%, 32%, 17% and 24%, respectively, of Chilectra’s total energy sales of 11,943 GWh, which is an increase of 1.3% in comparison with the first nine months of 2014.

The following table sets forth Chilectra’s principal operating data for each of the periods indicated:

	Nine months period ended September 30,						Year ended December 31,
	2015			2014			2014			2013
Electricity sales (GWh)		11,943			11,783			15,690			15,140
Residential		3,290			3,224			4,256			4,048
Commercial		3,850			3,694			4,983			4,627
Industrial		1,986			2,100			2,818			2,903
Other customers(1)		2,816			2,765			3,633			3,563
Number of customers (thousands)		1,772			1,727			1,737			1,694
Residential		1,585			1,545			1,555			1,516
Commercial		138			135			135			132
Industrial		12			12			12			12
Other customers		37			35			35			34
Energy purchased (GWh)(2)		12,630			12,469			16,572			15,990
Total energy losses (%)(3)		5.5	%		5.5	%		5.3	%		5.3	%

(1) The data for other customers includes tolls.

(2) During 2014, 49% of electricity purchased was acquired from Endesa Chile, and 29.4% in 2013.

(3) Energy losses are calculated as the percent difference between energy purchased and energy sold (GWh) within a given period. Losses in distribution arise from illegally tapped lines as well as technical losses.

44

For the nine months ended September 30, 2015, Chilectra’s principal unregulated customers were (ordered alphabetically): Aguas Andinas S.A., Cencosud, El Mercurio S.A, Esco Elecmetal, Gerdau Aza S.A., Goodyear Chile S.A.C.I., Linde Gas Chile S.A. (formerly Aga S.A.), Mall Plaza S.A., Metro S.A., Nestlé Chile S.A, Papeles Cordillera S.A. (CMPC), Praxair Chile S.A., Sca Chile S.A. (formerly Papeles Industriales S.A.), SCL Terminal Aéreo Santiago, Telefónica Chile S.A., Walmart Chile S.A. and Watt’s S.A.

For the nine months ended September 30, 2015, the collection rate was 96.7%, compared to 99.6% during the same period in 2014.

For the supply to regulated distribution customers, Chilectra has entered into contracts with the following generation companies: Endesa Chile, Gener, Colbún, Guacolda S.A. and Panguipulli S.A. In 2014, the distribution companies of the SIC jointly submitted a 5,000 GWh/year bid for the period of 2014 through 2025. In August 2014, Chilectra was awarded 15% of the electricity supply in the bidding process held by Endesa Chile. Additionally, the distribution companies of the SIC jointly submitted a second bid with energy requirements of 11,000 GWh/year for the period of 2016 through 2033. In December 2014, Chilectra was awarded 92% of the electricity supply in the bidding process held by the following companies: E.E Carén S.A., Santiago Solar S.A., Acciona Energía Chile SpA, E-CL S.A., Central El Campesino S.A., Norvind S.A. and Abengoa Chile S.A.

For the supply to unregulated distribution customers, Chilectra has contracts with the following generation companies: Duke Energy International Duqueco SpA, Colbún , Hidroeléctrica La Higuera S.A., Hidroeléctrica La Confluencia S.A., Guacolda S.A., Pacific Hydro Chacayes S.A. and Enel Green Power Chile Ltda, a subsidiary of our controlling company.

Non-Electricity Businesses

Servicios Informáticos e Inmobiliarios Ltda.

Servicios Informáticos e Inmobiliarios Ltda. (“SIEI”), a wholly-owned combined entity, is a business consultancy in technology, information and computer services, telecommunications, data transmission and develops real estate projects in Chile. It accounts for less than 1% of our revenues, income and assets.

45

CHILEAN ELECTRICITY INDUSTRY REGULATORY FRAMEWORK

The following chart shows a summary of the main characteristics of the Chilean electricity regulatory framework by business.

Gx	Unregulated Market	Spot markets with costs audited by the regulator
	Regulated	Node Price public auction up to 20 years
	Capacity	Income based on contributions during peak demand
Tx	Features	Public - Open Access Regulated Tariff Monopoly Regime for Transmission System Operators (“TSOs”)
Dx	Law	Administrative Concession (indefinite)
	Expansion	Undefined
	Tariff review	4 years
Cx	Unregulated Agents	> 0.5 MW
	Liberalized (%)	≈ 30%

Gx: Generation Tx: Transmission Dx: Distribution Cx: Trading

Industry Overview

Industry Structure

The Chilean electricity industry is divided into three business segments: generation, transmission and distribution. These business segments are carried out by publicly-owned private sector companies. The state’s role is circumscribed to regulation, supervision and indicative investment planning through non-binding recommendations in the case of the generation and transmission businesses, with the exception of the main transmission system in which indicative planning is binding as well as part of the bidding processes for its construction.

The following chart shows the relationships among the various participants in the Chilean electricity market:

46

The generation segment comprises a group of electricity companies that own generating plants, whose energy is transmitted and distributed to end customers. This segment is characterized by being a competitive market which operates under market-driven conditions. Generation plants sell their production to distribution companies, unregulated customers and other generation companies, and their surpluses on the spot market.

The transmission system is comprised of a combination of lines, substations and equipment for the transmission of electricity from the production points (generators) to the centers of consumption or distribution. Transmission in Chile is defined as lines or substations with a voltage or tension higher than 23 kV. The transmission system is open access, and transmission companies may impose rights of way over the available transmission capacity through the payment of tolls.

The distribution segment is defined for regulatory purposes as all electricity supplied to end customers at a voltage no higher than 23 kV. Distribution companies operate under a distribution public utility concession regime, with service obligations and regulated tariffs for supplying regulated customers.

Customers are classified according to their amount of demand, as follows: (i) unregulated customers with connected capacity of over 2,000 kW; (ii) regulated customers with connected capacity of no more than 500 kW; and (iii) customers that choose either a regulated-tariff or an unregulated regime, for a minimum period of four years in each regime, available to customers whose connected capacity falls in the range of 500 kW to 2,000 kW. In January 2015, the Chilean Congress approved a reform of the procurement system contained in the Chilean Electricity Law (described below), which becomes effective in 2019 and raises the capacity limit for unregulated customers and customers with the option to choose their regime from the former 2,000 kW to a new 5,000 kW threshold.

The distribution companies supply regulated customers, a segment for which the price and supply conditions are the result of tender processes regulated by the CNE), and unregulated customers, with bilateral agreements between generators, whose conditions are freely negotiated and agreed upon.

In Chile, there are four separate interconnected electricity systems. The main systems that cover the most populated Chilean areas are the SIC, which services the central and south central part of the country, where 92.2% of the Chilean population lives, and the SING, which operates in the northern part of the country, where most of the mining industry is located and where 6.3% of the Chilean population lives (2014 CDEC-SIC annual report). In addition to the SIC and the SING, there are two isolated systems in southern Chile that provide electricity to remote areas, where 1.5% of the population lives.

In 2013, the Chilean government sent a proposal to modify the Chilean Electricity Law to allow the state to promote the interconnection project between the SIC and the SING. In January 2014, the proposal was approved and signed into law by the Chilean President as Law No. 20,726. The interconnection is expected to be completed in 2018 or 2019.

In May 2014, the Chilean government announced the Energy Agenda in which a plan is established to create and execute a long-term energy policy. The Energy Agenda presents several courses of action and goals to achieve in the short, medium and long term. These objectives are: lower energy prices, facilitating the incorporation of non-conventional renewable energy sources and promoting the efficient use of energy.

The Energy Agenda includes a program of legal initiatives to realize those goals. Among the subjects to be addressed by this program are: “Amendments to the legal framework for procurement of electricity for regulated customers” (approved and published in theDiario Oficial in January 2015), “Amendments to the legal framework of the electricity transmission systems” (presented to Congress in August 2015, and currently under analysis ), “Energy Efficiency Law” (expected for the second quarter of 2016) and “Law to promote geothermal energy” (expected for the second quarter of 2016).

47

For more information about the amendments, see “—The Electricity Law - General” below.

The operation of electricity generation companies in each of the two major interconnected electricity systems is coordinated by their respective dispatch centers, known as a CDEC, an independent entity that coordinates generators, transmission companies and large customers. CDEC coordinates the operation of its system with an efficiency criterion in which the lowest cost producer available is usually required to satisfy demand at any moment in time. As a result, at any specific level of demand, the appropriate supply will be provided at the lowest possible production cost available in the system. The marginal cost used is the price at which generators trade energy on an hourly basis, involving both their injections into the system and their withdrawals or purchases for supplying their customers.

Principal Regulatory Authorities

The Chilean Ministry of Energy develops and coordinates plans, policies and standards for the proper operation of the sector, approves tariffs and node prices set by the CNE, and regulates the granting of concessions to electricity generation, transmission and distribution companies. The CNE is the technical entity in charge of defining prices, technical standards and regulatory requirements.

The SEF monitors the proper operation of electricity, gas and fuel sectors in compliance with the law in terms of safety, quality, and technical standards.

The Chilean Ministry of Environment is responsible for the development and application of regulatory and policy instruments that provide for the protection of natural resources, the promotion of environmental education and the control of pollution, among other matters. It is also responsible for administering the environmental impact assessment system at the national level, coordinating the preparation of environmental standards and establishing the programs for compliance with the standards.

Chilean antitrust authorities are responsible for preventing, investigating and correcting any threats to free market competition and any anti-competitive practices by potentially monopolistic companies. These authorities include:

• Free Market Competition Tribunal (“TDLC” in its Spanish acronym). This is a special and independent jurisdictional entity, subject to the directive, correctional and economic authority of the Chilean Supreme Court, which functions to prevent, correct and sanction threats to free market competition.

• National Economic Prosecutor (“FNE” in its Spanish acronym). This is the attorney general responsible for economic matters and for investigating and prosecuting all antitrust conduct before the FNE’s regulatory commission and other tribunals.

The Panel of Experts acts as a tribunal in electricity matters arising from disputes between participants in the electricity market and between participants in the electricity market and the regulatory authority in certain tariff processes. It issues enforceable resolutions and is composed of experts in industry matters, five engineers or economists and two lawyers, all of whom are elected every six years by the TDLC.

There are also other entities related to the energy sector: the Chilean Nuclear Energy Commission is in charge of research, development, use and control of nuclear energy, and the Chilean Energy Efficiency Agency is in charge of promoting energy efficiency.

48

The Electricity Law

General

Since its inception, the Chilean electricity industry has been developed by private sector companies. Nationalization was carried out during the period 1970-1973. During the 1980s, the sector was reorganized through the Chilean Electricity Law, known as DFL 1, allowing participation of private capital in the electricity sector. By the end of the 1990s, foreign companies had a majority participation in the Chilean electricity system.

The goal of the Chilean Electricity Law is to provide incentives to maximize efficiency and to provide a simplified regulatory scheme and tariff-setting process that limits the discretionary role of the government by establishing objective criteria for setting prices. The goal is an economically efficient allocation of resources. The regulatory system is designed to provide a competitive rate of return on investment to stimulate private investment, while ensuring the availability of electricity to all who request it.

DFL 1 was published in 1982 and has had few important changes since then. In 1999, a reform was applied to it due to the drought. The first important change took place in 2004 to encourage investments in transmission lines. Another took place in 2005 to create long-term contracts between generation and distribution companies as part of a bid process. The present text of the law was restated as DFL 4 of 2006, and has been supplemented with a series of regulations and standards.

In January 2015, the Chilean Congress approved amendments to the legal framework for procurement of electricity by regulated customers. Among the principal changes introduced in these amendments, were:

• Increased CNE participation in the development of tenders.

• Additional time to call for tenders: five years in advance.

• Allocation mechanism: Will be awarded to the lowest prices offered. These prices will be limited by a capped price that will be deemed as a reserve price and keep private until the bid price is public.

• Reduced risk: Providers of electricity have the ability to postpone delivery of electricity in the event there are delays due to a well-founded reasons, not attributable to the tenderer and to request a price review, indexed to the conditions prevalent at the time which the supply is delivered.

• Short-term contracts: Short-term procurement contracts (up to three years), with an advance of one year, have a minimum price equal to the average market price plus 50%. Additionally, within specified ranges from the average marginal cost price, marginal cost will be used.

• Uncontracted energy: All generators within a particular system will be required to offset energy supply contract deficits in proportion to the energy they inject into the system. Each generator will receive the higher of the short-term node price or variable cost of the plant. When energy without contracts exceeds 5% of the total regulated supply, the excess will be paid by distribution companies at a price equal to marginal cost. In turn, these marginal costs will be passed on to end customers.

• Unregulated customers: Unregulated customers capacity limit increased from 2,000 kW to 5,000 kW beginning 2019.

Currently, a new modification is under study by the Chilean Congress which is intended to address two relevant issues:

• Planning, expansion and remuneration of the Chilean transmission systems.

• Long-term energy planning for terms of at least 40 years by the Chilean Ministry of Energy.

• Annual transmission system planning by the CNE.

• Transmission network valuation process every four years.

• Transmission network cost to be financed by unregulated and regulated consumers.

49

• New entity to coordinate the power plant operations and the transmission facilities of the Chilean electricity system (Comité Independiente del Sistema Eléctrico Nacional,“CISEN” in its Spanish acronym)

• Independent power plant directory.

• Attributions and resources

• In the middle-term, due to the SING-SIC interconnection, there will be only one new operator of the Chilean electricity system.

Limits and Restrictions

The owners of the main transmission system must be constituted as limited liability stock corporations and cannot take part in the electricity generation or distribution businesses.

Individual interest in the Main Transmission System (“STT” in its Spanish acronym) by companies operating in another electricity or unregulated customer segment cannot exceed, directly or indirectly, 8% of the total investment value of the STT. The aggregate interest of all such agents in the STT must never exceed 40% of the investment value.

According to the Chilean Electricity Law, there are no restrictions on market concentration for generation and distribution activities. However, Chilean antitrust authorities have imposed certain measures to increase the transparency within the different companies within the group of Enersis and its subsidiaries. The TDLC’s Resolution No. 667/2002 requires:

• board members of Enersis, Endesa Chile and Chilectra be elected from different and independent groups;

• the external auditors of Enersis, Endesa Chile and Chilectra be different for local statutory purposes;

• Enersis, Endesa Chile and Chilectra may not merge companies within the group which operate in electricity generation and distribution; instead, Enersis must continue to maintain both business segments separately through companies that are independent business units; and

• Enersis, Endesa Chile and Chilectra must remain subject to the regulatory authority of the SVS and comply with the regulations applicable to publicly held stock corporations, even if they should lose such designation.

Resolution No. 667/2002 will apply to Enersis Chile, as its by-laws will include provisions regarding to being subject to this resolution, with the understanding that the restrictions shall not apply to Enersis Américas with respect to the spin-off of Enersis Chile and considering that Enersis Américas shall not participate in any way in the relevant markets within Chile, it may merge with Endesa Américas and Chilectra Américas.

Additionally, in October 2012, FNE Official Letter No. 1479 imposed additional restrictions on Endesa Chile stating that:

(i) the controlling shareholders should refrain from designating those persons who had been directors of Chilectra the prior term, as Endesa Chile directors; and

(ii) Endesa Chile’s management should refrain from designating employees in first and second level positions that had held the same positions in Chilectra during the six months prior to their designation.

In addition, the Water Utility Services Law also sets restrictions on the overlapping of concessions in the same area, setting restrictions on the ownership of the property between sewage services concessions and utilities that are natural monopolies, such as electricity distribution, gas or home telephone networks.

50

Regulation of Generation Companies

Concessions

Chilean law permits generation activity without a concession. However, companies may apply for a concession to facilitate access to third-party properties. Third-party property owners are entitled to compensation, which may be agreed to by the parties or, if there is no agreement, it may be determined by an administrative proceeding that may be appealed in the Chilean courts.

Dispatch and Pricing

In each of the two major electric systems, the pertinent CDEC coordinates the operations of generation companies, in order to minimize the operating costs in the electricity system and monitor the quality of service provided by the generation and transmission companies. Generation companies satisfy their contractual sales requirements with dispatched electricity, whether produced by them or purchased from other generation companies in the spot market.

Sales by Generation Companies to Unregulated Customers

Sales by generation companies may be made to unregulated end customers or to other generation companies under freely negotiated contracts. To balance their contractual obligations with their dispatch, generators have to trade deficit and surplus electricity at the spot market price, which is set hourly by each CDEC, based on the lowest cost of production of the last kWh dispatched.

Sales to Distribution Companies and Certain Regulated Customers

Under Law No. 20,018 (Ley Corta II), enacted on May 19, 2005, all new contracts between generation and distribution companies to supply electricity to regulated customers must arise from international bids. In January 2015, theDiario Oficialpublished Law No. 20,805, which amended the bidding process for supplying electricity to regulated customers. These amendments, among others, changed the anticipation required for the bidding process from three to five years; the extension of the maximum contract period from 15 to 20 years; new procedures to assign energies without contracts; new procedures to regulate the short-term bidding process; the adoption of a capped price known as “reserve price,” that is kept private until the bid price is made public; and the possibility to review the price awarded during the supply period.

Sales of Capacity to Other Generation Companies

Each CDEC determines a firm capacity for each power plant on an annual basis. Firm capacity is the highest capacity which a generator may supply to the system at certain peak hours, taking into consideration statistical information and accounting for time out of service for maintenance purposes and for extremely dry conditions in the case of hydroelectric plants.

A generation company may be required to purchase or sell capacity in the spot market, depending upon its contractual requirements in relation to the amount of electricity to be dispatched from such company and to its firm capacity.

Promotion of Generation from Renewable Energy Sources

On April 1, 2008, Law No. 20,257 amended the General Electric Services Law. The purpose of the amendment was to promote the development of NCRE. This law defines the different types of technologies that qualify as NCRE and establishes the obligation for generators, between 2010 and 2014, to supply at least 5% of the total energy contracted as of August 31, 2007, to be of a certain type, and to progressively increase this percentage by 0.5 percentage points annually up to a minimum of 10% by 2024.

51

On October 22, 2013, Law No. 20,698 (known as the “20/25 Law”) supported renewable energy sources and modified the previously defined NCRE minimum requirements. This law establishes a mandatory share of renewable energy sources in 2025, calculated as a percentage of the total contracted energy of each generator. For contracts signed between 2007 and 2013, the target is 10% by 2024, while for contracts beyond 2013 the target is 20% by 2025.

Incentives and Penalties

If a rationing decree is enacted in response to prolonged periods of electricity shortages, strict penalties may be imposed on generation companies that contravene the decree. A severe drought is not considered a force majeure event under our service agreements.

Generation companies may also be required to pay fines to the regulatory authorities, as well as to make compensatory payments to electricity customers affected by shortages of electricity. The fines are related to system blackouts due to an electricity generator’s operational problems, including failures related to the coordination duties of all system agents. If generation companies cannot satisfy their contractual commitments to deliver electricity during periods when a rationing decree is in effect and there is no energy available to purchase in the system, the generation company must compensate the customers at a rate known as the “failure cost” determined by the authority in each node price setting. This failure cost, which is updated semiannually by the CNE, is a measurement of how many end customers would pay for one extra MWh under rationing conditions.

Water Rights

Companies in Chile must pay an annual fee for unused water rights. License fees already paid may be recovered through monthly tax credits commencing on the start-up date of the project associated with the water right. The maximum license fees that may be recovered are those paid during the eight years before the start-up date.

The Chilean Constitution considers water as a national public good on which real utilization rights are defined. That is similar to holding the private property rights over water, as set forth in article 19, paragraph 24: “The rights of individuals over water, recognized or constituted in accordance with the law, grant their holders ownership over such rights.” Notwithstanding the foregoing, paragraph 24 also specifies legal limitations to those water rights.

The Chilean Congress is currently discussing amendments to the Water Code with the objective of making water use related to human consumption, household subsistence and sanitation a priority, both in the granting and limiting the exercise of rights of use, including:

• Granting of water rights which would be limited to a maximum period of 30 years and extendable, unless the Chilean Water Authority proves the ineffective use of resources. The extension shall be effective only for used water rights.

• The expiration of non-consumptive water rights, that were granted by law, if the holder does not exercise the right of use within eight years.

• The expiration of non-consumptive water rights already granted, if the user does not effectively use the rights within a period of eight years from the date of enactment of the new Water Code. Only in justified cases, such asdelays in obtaining permits or environmental approvals, can the term be extended for up to four years.

52

Regulation of Distribution Companies

Concessions

Distribution service concessions give the right to use public areas for building distribution lines. The concessions are given by the Chilean Ministry of Energy for an undefined period. Distribution companies have the obligation to serve and connect the customers that make the requirement in the concession area. The Chilean President can declare a concession expired if the quality of service does not meet certain minimum standards.

Energy Purchases

Since 2005, with the enactment of the law “Ley Corta II,” energy sales between generation and distribution companies have been made by an international auction process. After the last modification of the law (Law 20.805 – 2015), the auctions of all distribution companies are managed by the CNE. The auctions are based on distribution companies’ projections of energy demand for the coming years. The result of the process is a “pay as bid” contract, with an extension up to 20 years. In addition, the modifications of the law establish a mechanism to supply the excess demand that is not covered by the contract.

Distribution Tariffs to End Customers

Tariffs charged by distribution companies to end customers are determined by the sum of the cost of electricity purchased by the distribution company, a transmission charge, and the value added from distribution of electricity (“VAD”), which allows distribution companies to recover their investment and operating costs, including a return on investment which is set by law. The price for both generation and distribution capacity sold to customers includes a factor which reflects the simultaneous contribution of each customer to peak capacity demand of the system as a whole. The transmission charge reflects the cost paid for electricity transmission and transformation.

The VAD is based on a so-called “efficient model company,” which considers the cost of building and operating the company at the minimum cost, fulfilling quality and safety standards. It includes the annualized investment in distribution assets, the company’s operation, administration, and maintenance costs, and an expected return on investment, before taxes of 10% per year in real terms, based on the replacement cost of assets used for the distribution business.

Regulatory Charges and Subsidies

The Chilean law deems that transitory subsidies can be granted, if the residential customers tariff increased by at least 5% within a six-month period. The application of this subsidy is optional and the last one was granted in 2009.

Distribution Tariff-Setting Process

The VAD is set every four years. The CNE classifies companies into groups called Typical Distribution Areas (“TDA”) based on economic factors that group companies with similar distribution costs, which in turn determines the equipment requirements of the network. The CNE selects one distribution company for every group and estimates its cost under the concept of an efficient model company. At the same time, distribution companies also carry out their own studies, which are based on the same one company selected by the CNE for each TDA. The VAD of each TDA is determined in a weighted manner with one third of the value estimated by the study of the companies and two thirds by the CNE. Preliminary tariffs, as a result of the VAD, are tested to ensure that they provide a rate of return between 6% and 14% on distribution assets.

The real return on investment for a distribution company depends on its actual performance relative to the standards chosen by the CNE for the efficient model company. The tariff system allows for a greater return to distribution companies that are more efficient than the model company.

53

Associated Electrical Services

In 2013, the CNE concluded the tariff setting process for 25 regulated associated services (which include meter rental, disconnection and reconnection of service, among others). These new prices were applied starting March 14, 2014 and will remain in effect until 2016.

Incentives and Penalties

Distribution companies may be required to compensate end customers in the case of electricity shortages that exceed the authorized standards. These compensatory payments are equal to double the amount of electricity the distribution company failed to provide, using a rate equal to the failure cost.

Regulation in Transmission

The main transmission system consists of 220 kV or higher voltage lines that are used by generators and customers. Every four years, a study is carried out to evaluate the existing system and to define the expansion plan. On December 31, 2010, the last study was delivered to the CNE. In November 2011, the CNE promulgated Decree 61, which defines the current value of the existing lines to be remunerated for the 2011 to 2014 period. The main transmission system is paid for by generators and customers.

According to the General Electricity Services Law, the transportation of electricity by main transmission systems and sub-transmission systems are defined as a public service. Therefore, the transmitter has a service obligation and is responsible for the maintenance and improvement of its facilities.

On October 14, 2013, the Electricity Concessions Law was approved, which law seeks to streamline the processing of electrical concessions, including, among other things, compensation, taxation and notifications.

During 2014, studies were developed to set tolls of major transmission systems. The results of these studies should have been applied beginning in 2015. However, the authority ruled that the current values will remain in effect until December 2015.

Regulation in Subtransmission

Subtransmission systems are defined as voltage lines exceeding 23 kV. There are six subtransmission systems defined by decree. The subtransmission systems are paid mainly by customers according to the tariffs fixed by decree of the Chilean Ministry of Energy. Subtransmissions tariffs remunerate the Subtransmission Annual Value (“VASTx” in its Spanish acronym). The VASTx is estimated every four years in a process carried out by the government. Each subtransmission system develops a study where investment, operation, maintenance, and administration costs are estimated. Investments are economically adapted to the government’s energy projections. Therefore, tariffs only pay for investments in utilized capacity and not for overcapacity. The discount rate established by law is 10%. Operation, maintenance, and administrative costs are estimated under the “efficient model company” methodology, as described above. The CNE’s consultants examine the studies and develop a report that includes CNE considerations. If major discrepancies are discovered, an expert panel will resolve them based on technical aspects.

Generators and unregulated customers pay only for the lines they use in each system. In April 2013, Decree 14 was promulgated, which established a tariff schedule for 2011 through 2014.

During 2014, studies were developed to set tolls of subtransmission systems. The results of these studies should have been applied beginning in 2015. However, the authority ruled that the current values will remain in force for an additional year.

54

Environmental Regulation

The Chilean constitution grants citizens the right to live in a pollution-free environment. It further provides that certain other constitutional rights may be limited in order to protect the environment. Chile has numerous laws, regulations, decrees and municipal ordinances that address environmental considerations. Among them are regulations relating to waste disposal (including the discharge of liquid industrial wastes), the establishment of industries in areas that may affect public health, and the protection of water for human consumption.

Environmental Law No. 19,300 was enacted in 1994 and has been amended by several regulations, including the Environmental Impact Assessment System Rule issued in 1997 and modified in 2001. This law requires companies to conduct an environmental impact study and a declaration of any future generation or transmission projects.

In January 2010, Law No. 19,300 was modified by Law No. 20,417, which introduced changes in the environmental assessment process and in the public institutions involved, principally creating the Chilean Ministry of Environment and the Superintendence of Environment. Environmental assessment processes are coordinated by this entity and the Environmental Assessment Service. In June 2011, the Ministry of Environment published Decree 13, emission standards for thermoelectric plants applicable to generation units of at least 50 MW. The objective of this regulation is to control atmospheric emissions of particulate matter (MP), nitrogen oxides (NOx), sulfur dioxide (SO₂) and mercury (Hg), in order to prevent and protect the health of the population and protect the environment. Existing emission sources will have to meet emission limits as established in the regulation for MP emissions within two and a half years from the date this decree was published (December 2013) and for SO₂and NOx emissions, within four years in highly polluted areas and within five years elsewhere.

In June 2012, Law No. 20,600 created the Environmental Courts, special jurisdictional courts subject to the control of the Chilean Supreme Court. Their primary function is to resolve environmental disputes within their jurisdiction and look into other matters that are submitted for their attention under the law. The law created three such courts, all of which are in operation.

On December 28, 2012, the Superintendence of Environment was formally created and began to exercise its powers of enforcement and sanctions pursuant to Chilean environmental regulations.

On September 10, 2014, Law No. 20,780 was enacted and included charges for the emission of particles (MP), nitrogen oxides (NOx), sulfur dioxide (SO₂) and carbon dioxide (CO₂) into the atmosphere. For CO₂ emissions, the charge is US$ 5 per emitted ton (not applicable to renewable biomass generation). MP, NOx and SO₂ emissions will be charged the equivalent of US$ 0.10 per emitted ton, multiplied by the result of a formula based on the population of the municipality where the generation plant is located and an additional fee of US$ 0.90 per ton of MP emitted, US$ 0.01 per ton of SO₂ emitted and US$ 0.025 per ton of NOx emitted. This tax will be in effect beginning in 2018, taking into account the previous year’s emissions.

Raw Materials

For information regarding our raw materials, please see “Item 11. Quantitative and Qualitative Disclosures About Market Risk — Commodity Price Risk.”

55

C. Organizational Structure.

In this “Organizational Structure” section, references (i) to “we,” “us” and “our” are to the Chilean Business of Enersis prior to the Spin-Off, and to Enersis Chile after the Spin-Off, (ii) to Endesa Chile are to the Chilean business of Endesa Chile prior to the spin-off of Endesa Américas by Endesa Chile, and to Endesa Chile after such spin-off, and (iii) to Chilectra are to the Chilean business of Chilectra prior to the spin-off of Chilectra Américas by Chilectra, and to Chilectra Chile after such spin-off.

Principal Combined Entities and Affiliates

We are part of an electricity group controlled by the Italian company, Enel, which after giving effect to theSpin-Off, will beneficially own 60.6% of our shares through wholly-owned Spanish combined entities. Enel publicly trades on the Milan Stock Exchange. It is headquartered in Italy and is primarily engaged in the energy sector, with a presence in 30 countries across five continents, mainly in Europe and Latin America, and generating power from power plants with over 89 GW of net installed capacity. Enel provides service to more than 61 million customers through its electricity and gas businesses through distribution networks of 1.9 million kilometers.

56

Enersis Chile’s Simplified Organizational Structure After Giving Effect to the Spin-Off⁽¹⁾

As of September 30, 2015

(1) Only principal operating combined entities are presented here. The percentage listed for each of our combined entities represents our post-Spin-Off economic interest in such combined entity.

57

The companies listed in the following table were combined by us as of September 30, 2015. In the case of combined entities, economic interest is calculated by multiplying our post-Spin-Off percentage of economic interest in a directly held combined entity by the percentage economic interest of any entity in the chain of ownership of such ultimate combined entity.

Principal Combined Entities and Country of Operations	% Economic Ownership of Main Combined Entity by Enersis		Combined Assets of Each Main Combined Entity		Operating  Income  of Each Main  Combined Entity
	(in %)		(in billions of Ch$)
Electricity Generation
Endesa Chile (Chile)(1)		60.0		3,275.0		229
Electricity Distribution
Chilectra (Chile)		99.1		994.6		112
Other non-electricity businesses
SIEI (Chile)(2)		100		61.2		(1	)

(1) Endesa Chile consolidates all generation facilities in Chile.

(2) In December 2014, Inmobiliaria Manso de Velasco Ltda. merged into ICT Servicios Informáticos Ltda. This resulting company was renamed Servicios Informáticos e Inmobiliarios Ltda. (SIEI).

Generation Business

Celta

Celta was formed in 1995 in order to build and operate two thermoelectric plants in the SING: a coal-fired plant with an installed capacity of 158 MW, and a gas/fuel oil power plant with 24 MW of installed capacity. On November 1, 2013, Endesa Eco (which had previously merged with San Isidro and Pangue) was merged into Celta. Endesa Chile holds a 96.2% equity interest and we hold a 61.5% economic interest in Celta.

Endesa Chile

Endesa Chile is a Chilean electricity generation business, which has a total installed capacity of 6,351 MW as of September 30, 2015, with 17 generation facilities. Of the total installed capacity, 62% is from hydroelectric power plants and includes, among others, Ralco with 690 MW, El Toro with 450 MW, Rapel with 377 MW, and Antuco with 320 MW. Nearly 67% of its thermoelectric facilities are gas/fuel oil power plants, and the remaining are coal-fired steam power plants. Our economic interest in Endesa Chile is 60.0%.

GasAtacama

GasAtacama is a generation company located in the northern region of Chile. It consists of a four-unit combined-cycle power plant of with a capacity of 780 MW and a gas pipeline, which allows the import of gas from Argentina. Since March 31, 2014, and after completing the purchase of a 50% ownership interest in GasAtacama Holding, Endesa Chile beneficially owns 98.1% of GasAtacama’s shares and the remaining 1.9% is beneficially owned by Enersis. Since May 1, 2014, Endesa Chile has fully combined GasAtacama Holding and GasAtacama in its combined financial statements. We beneficially own a 60.7% economic interest in GasAtacama.

Pehuenche

Pehuenche, a generation company connected to the SIC, owns three hydroelectric facilities located in the hydrological basin of the Maule River, south of Santiago, with a total installed capacity of 699 MW. The 570 MW Pehuenche plant began operations in 1991, the 89 MW Curillinque plant began operations in 1993, and the 40 MW Loma Alta plant began operations in 1997. Endesa Chile holds 92.7% of Pehuenche and our economic interest in Pehuenche is 55.6%.

58

Distribution Business

Chilectra

Chilectra is one of the largest electricity distribution businesses in Chile as measured by the number of regulated customers, distribution assets and energy sales. Chilectra operates in a concession area of 2,105 square kilometers in the Santiago metropolitan area, serving approximately 1.8 million customers. Our shareholding is 99.1%.

Selected Related and Jointly-Controlled Companies

Transquillota

Transquillota was formed by San Isidro and Colbún for the joint development of a 220 kV transmission line to dispatch the energy produced and to connect both the San Isidro (which is now merged with Celta, one of Endesa Chile’s combined entities) and Nehuenco (a combined entity of Colbún) plants to the SIC. The 220 kV transmission line is 8 kilometers long. The property is equally divided between Celta and Nehuenco (an unrelated company). Endesa Chile’s economic interest is 48.1% and our economic interest is 30.7%.

Non-Electricity Businesses

SIEI

SIEI is a company that provides consulting, management, administration and contract operations related to information systems, technological information, telecommunications, and control systems in South America, as well as real estate projects in Chile. SIEI was formed in December 2014, as a result of the merger of ICT Servicios Informáticos Ltda. with Inmobiliaria Manso de Velasco Ltda.

For additional information on all of our combined entities and jointly-controlled companies, please refer to Appendix 1 of our combined financial statements.

D. Property, Plant and Equipment.

In this “Property, Plant and Equipment” section, references (i) to “we,” “us” and “our” are to the Chilean Business of Enersis prior to the Spin-Off, and to Enersis Chile after the Spin-Off, (ii) to Endesa Chile are to the Chilean business of Endesa Chile prior to the spin-off of Endesa Américas by Endesa Chile, and to Endesa Chile after such spin-off, and (iii) to Chilectra are to the Chilean business of Chilectra prior to the spin-off of Chilectra Américas by Chilectra, and to Chilectra Chile after such spin-off.

Our property, plant and equipment are concentrated on electricity generation and distribution assets in Chile.

Property, Plant and Equipment of Generating Companies

We conduct our generation businesses through Endesa Chile, which owns 28 generation power plants in Chile.

A substantial portion of our generating combined entities’ cash flow and net income is derived from the sale of electricity produced by our electricity generation facilities. Significant damage to one or more of our main electricity generation facilities or interruption in the production of electricity, whether as a result of an earthquake, flood, volcanic activity or any other such cause, could have a material adverse effect on our operations. Our electricity generation facilities are insured against damage due to earthquakes, fires, floods, other acts of god (but not for prolonged droughts, which are notforce majeure risks, and are not covered by insurance) and from damage due to third-party actions, based on the appraised value of the facilities as determined from time to time by an independent appraiser. Based on geological, hydrological and engineering studies,

59

management believes that the risk of an event with a material adverse effect is remote. Claims under our generating combined entities’ insurance policies are subject to customary deductibles and other conditions. We also maintain business interruption insurance providing coverage for the failure of any of our facilities for a period of up to 24 months, including the deductible period.

The insurance coverage taken for our property is approved by each company’s management, taking into account the quality of the insurance companies and the needs, conditions and risk evaluations of each generating facility, and is based on general corporate guidelines.

All insurance policies are purchased from reputable international insurers. We continuously monitor and meet with the insurance companies in order to obtain what we believe is the most commercially reasonable insurance coverage.

60

The following table identifies the power plants that we own, all in Chile, at the end of each period indicated, by company and their basic characteristics:

			As of September 30,				As of December 31,
Company	Power Plant Name	Power Plant Type(1)	2015		2014		2014		2013
			(in MW)
Endesa Chile	Rapel	Reservoir		377		377		377		377
	Cipreses	Reservoir		106		106		106		106
	El Toro	Reservoir		450		450		450		450
	Los Molles	Pass-through		18		18		18		18
	Sauzal	Pass-through		77		77		77		77
	Sauzalito	Pass-through		12		12		12		12
	Isla	Pass-through		70		70		70		70
	Antuco	Pass-through		320		320		320		320
	Abanico	Pass-through		136		136		136		136
	Ralco	Reservoir		690		690		690		690
	Palmucho	Pass-through		34		34		34		34
	Total hydroelectric			2,290		2,290		2,290		2,290
	Bocamina	Steam Turbine/Coal		478		478		478		478
	Diego de Almagro	Gas Turbine/ Diesel Oil		24		24		24		24
	Huasco	Gas Turbine/IFO 180 Oil		64		64		64		64
	Taltal	Gas Turbine/Natural Gas+Diesel Oil		245		245		245		245
	San Isidro 2	Combined Cycle /Natural Gas+Diesel Oil		399		399		399		399
	Quintero	Gas Turbine/Natural Gas+Diesel Oil		257		257		257		257
	Total thermal			1,467		1,467		1,467		1,467
	Total			3,757		3,757		3,757		3,757
Pehuenche	Pehuenche	Reservoir		570		570		570		570
	Curillinque	Pass-through		89		89		89		89
	Loma Alta	Pass-through		40		40		40		40
	Total			699		699		699		699
Celta(2)	Tarapacá	Steam Turbine/Coal		158		158		158		158
	Tarapacá	Gas Turbine/Diesel Oil		24		24		24		24
	San Isidro	Combined Cycle /Natural Gas+Diesel Oil		379		379		379		379
	Pangue	Reservoir		467		467		467		467
	Canela	Wind Farm		18		18		18		18
	Canela II	Wind Farm		60		60		60		60
	Ojos de Agua	Pass-through		9		9		9		9
	Total			1,115		1,115		1,115		1,115
GasAtacama(3)	Atacama	Combined Cycle /Natural Gas+Diesel Oil		781		781		781		—
	Total			781		781		781		—
Total capacity				6,351		6,351		6,351		5,571

(1) “Reservoir” and “pass-through” refer to hydroelectric plants that use the force of a dam or a river, respectively, to move the turbines which generate electricity. “Steam” refers to thermal power plants fueled with natural gas, coal, diesel or fuel oil to produce steam that moves the turbines. “Gas Turbine” (“GT”) or “Open Cycle” refer to thermal power that uses either diesel or natural gas to produce gas that moves the turbines. “Combined-Cycle” refers to a thermal power plant fueled with natural gas, diesel oil, or fuel oil to generate gas that first moves a turbine and then recovers the gas from that process to generate steam to move a second turbine.

(2) San Isidro. merged into Endesa Eco. on September 1, 2013, and the latter remained the surviving company. Subsequently, Endesa Eco merged into Celta on November 1, 2013, and Celta. was the surviving company.

(3) GasAtacama was accounted for using the equity method and its installed capacity was not included in 2013 and for a portion of 2014. Since May 1, 2014, GasAtacama has been fully combined following Endesa Chile’s purchase of an additional 50% interest in GasAtacama Holding.

61

As of September 30, 2015, we received the ISO 14,001 certification for 94.5% of our installed capacity in Chile, which included our generation facilities that produced 96.4% of the total annual generation, in accordance with this standard.

Property, Plant and Equipment of Distribution Companies

We also have significant interests or investments in electricity distribution. The description for our distribution company is included in this “Item 4. Information on the Company.” The table below describes our main equipment used for our distribution business, such as transmission lines, substations, distribution networks and transformers.

We are insured against damage to substations, transformers that are within the substations, the distribution network that is less one kilometer from the substations and administrative buildings. Risks covered include damages caused by fires, explosions, earthquakes, floods, lightning, damage to machinery and other such events. Insurance policies include liability clauses, which protect our companies from claims made by third parties.

TABLE OF DISTRIBUTION FACILITIES

General Characteristics

					Transmission Lines(1)
					As of September 30,				As of December 31,
	Location		Concession Area		2015		2014		2014		2013
			(in km2)		(in kilometers)
Chilectra		Chile		2,105		361		355		355		355

(1) The transmission lines consist of circuits with voltages in the 27-220 kV range.

Power and Interconnection Substations and Transformers⁽¹⁾

	As of September 30,
	2015						2014
	Number of Substations		Number of Transformers		Capacity (in MVA)		Number of Substations		Number of Transformers		Capacity (in MVA)
Chilectra		55		164		8,123		54		161		7,673

(1) Voltage of these transformers is in the range of 500 kV (high voltage) and 7 kV (medium voltage).

	As of December 31,
	2014						2013
	Number of Substations		Number of Transformers		Capacity (in MVA)		Number of Substations		Number of Transformers		Capacity (in MVA)
Chilectra		54		161		7,673		54		160		7,598

(1) Voltage of these transformers is in the range of 500 kV (high voltage) and 7 kV (medium voltage).

62

Distribution Network - Medium and Low Voltage Lines⁽¹⁾

	As of September 30,								As of December 31,
	2015				2014				2014				2013
	Medium Voltage		Low Voltage		Medium Voltage		Low Voltage		Medium Voltage		Low Voltage		Medium Voltage		Low Voltage
									(in kilometers)
Chilectra		5,218		11,154		5,145		10,956		5,152		11,016		5,111		10,838

(1) Medium voltage lines: 7 kV - 34.5 kV; low voltage lines: 380-110 V.

Transformers for Distribution⁽¹⁾

	As of September 30,								As of December 31,
	2015				2014				2014				2013
	Number		Capacity (in MVA)		Number		Capacity (in MVA)		Number		Capacity (in MVA)		Number		Capacity (in MVA)
Chilectra		28,972		7,774		29,013		7,535		28,995		7,621		28,893		7,313

(1) Voltage of these transformers is in the range of 34.5 kV (medium voltage) and 110 V (low voltage).

Project Investments

The total investment for each project described below was translated into Chilean pesos at the exchange rate of Ch$ 698.72 per U.S. dollar, the U.S. dollar Observed Exchange Rate as of September 30, 2015. Budgeted amounts include connecting lines that could eventually be owned by third parties and paid as tolls, unless otherwise indicated.

Projects under Construction

Los Cóndores Hydroelectric Project

Los Cóndores project will be located in the Maule region, in the San Clemente area. It consists of a 150 MW run-of-the river hydroelectric power plant, which will use water from the Maule Lake reservoir through a 12 km penstock. The power plant will be connected to the SIC at the Ancoa substation (220 kV) through an 87 km transmission line and will consist of two Units.

The basic engineering and the Environmental Impact Statement (“DIA”, in its Spanish acronym) of the Los Cóndores optimized project were concluded in early 2011. The RCA was obtained in November 2011 and the RCA of the Transmission Line project was granted in May 2012. Finally, in November 2014, the General Water Authority approved the waterworks permit.

During July 2015, we conducted scale model tests of the turbines in the laboratory owned by Voith Hydro located in Heidenheim, Germany. The results were satisfactory and enabled a hydraulic design, giving rise to the detailed design of the main generating equipment, a process that will take approximately eight months.

During August 2015, we participated in the assembling tests of the Tunnel Boring Machine (“TBM”), which will be used to build a 12 km connecting tunnel.

The main advances in construction in 2015 were:

• In January 2015, we finished phase 1 of civil works by executing (digging and sustenance) the first 10 meters of the tunnel Ventana Lo Aguirre.

• In April 2015, we completed the digging of the access tunnel to the underground powerhouse (390 meters in length).

63

• In August 2015, we completed the digging of the auxiliary tunnel to the discharge tunnel (141 meters in length).

• In September 2015, we completed the digging of the discharge tunnel of both Units that connect the underground powerhouse with the principal discharge tunnel of the power plant.

Construction is expected to be completed in 2018. This project is being financed primarily with internally generated funds. The estimated total investment is Ch$ 409,795 million, of which Ch$ 80,553 million was accrued as of September 30, 2015.

Projects Under Development

We continuously analyze different growth opportunities in Chile. During 2015, our projects’ portfolio has been modified to permit flexibility in the investment decision. The focus is to have a portfolio with projects that are sustainable from a technical, environmental, social and economic perspective. Expected dates of commissioning of each of the projects are constantly reviewed and are defined based on commercial opportunities and on our financial capacity to undertake these projects. The most important projects under development are as follows:

Generation Business

Neltume Hydroelectric Project

The Neltume project is located in Los Ríos region, on the upper part of the Valdivia River basin. The Neltume project consists of a 490 MW installed capacity run-of-the-river hydro power plant. It will be connected to the SIC through a 42 kilometer 220 kV transmission line from Neltume to Pullinque.

In 2007, we started an early process of social integration in the local territory, which is still in place. Due to this process and to the engineering studies required, the Environmental Impact Study was submitted in December 2010. The environmental assessment process was suspended during its fourth round of questions and answers by the Environmental Evaluation Authority (“SEA,” in its Spanish acronym) of Los Ríos. This suspension is part of the Indigenous Inquiry process that the SEA is carrying out.

During the second half of 2013, the SEA initiated the Indigenous Inquiry process for the local inhabitants in the area, to ascertain their position on the project and to comply with Convention No. 169, “Indigenous and Tribal Peoples Convention” of the International Labor Organization (“ILO”). There is no legal deadline to complete the Indigenous Inquiry and the environmental assessment process is suspended until it is concluded.

We expect construction to start during 2018 and completion in 2023. This project is being financed primarily with internally generated funds. The estimated total investment is Ch$ 880,340 million, of which Ch$ 39,140 million was accrued as of September 30, 2015.

Piruquina Hydroelectric Project

The Piruquina Hydroelectric project is located in Los Lagos region, on Chiloé Island, and will use water from the Carihueico river. The Piruquina project consists of a 8 MW installed capacity mini hydroelectric power plant. Its architecture provides a small connecting tunnel of approximately 200 meters. It will be connected to the SIC at the Pid-Pid substation, through a 6 kilometer 23 kV transmission line.

This project has all the engineering studies and principal permits required, as well as the favorable environmental qualification resolution (“RCA” in its Spanish acronym) issued on November 10, 2009 and the Hydraulic Work Permit (“PHO” in its Spanish acronym) granted on August 6, 2014 that approves and authorizes the construction of hydraulic works for the power plant.

64

Currently, we expect construction to start during 2016 and completion in 2018. This project is being financed primarily with internally generated funds. The estimated total investment is Ch$ 25,950 million, of which Ch$ 39 million was accrued as of September 30, 2015.

Ttanti Combined-Cycle Project

The Ttanti project is located in Antofagasta región, in an adjacent land to the existing Atacama power plant, in the industrial zone of Mejillones city. In its first phase, the project consists of the construction of a natural gas combined-cycle power plant with an installed capacity of approximately 400 MW, which would be able to use diesel oil as a backup. The power plant would be connected to SING through a 0.5 km 220 kV double circuit transmission line to the Atacama substation, which will required to be expanded for this purpose.

Currently, the project is in the environment assessment phase. Nevertheless, we agreed to suspend the process until the end of 2015, in order to prepare and complete Addendum No. 1, to respond to the first round of observations formulated by the SEA.

We expect construction to start during 2018 and its commissioning is expected in 2022. The estimated total investment is Ch$ 209,319 million, of which Ch$ 335 million was accrued as of September 30, 2015.

Taltal Combined-Cycle Project

The project consists of the construction of a steam turbine for converting the existing Taltal gas-fired open cycle plant to a combined-cycle plant by adding a turbine in the vapor phase, which would use the steam generated by the gas turbines’ heat emissions to produce energy, which will considerably improve its efficiency. The Taltal power plant is located in the Antofagasta region. Currently, the existing Taltal power plant has two gas turbines of 120 MW each. The extra power to be added by the steam turbine would be approximately 130 MW and therefore, the Taltal power plant would achieve a total capacity of 370 MW and an efficiency increase. The energy produced will be supplied to the SIC through the existing 220 kV double circuit Diego de Almagro – Paposo transmission line.

In December 2013, an Environmental Impact Statement (“DIA” in its Spanish acronym) was submitted for approval to the SEA, in order to optimize the project. The main modification relates to a change in the cooling system, which was originally designed as a wet system (using sea water) and is being modified to a dry cooling system. During 2014, we progressed on drafting Addendum No. 1 of the DIA responding to the first round of observations formulated by the SEA, which was submitted during the first quarter of 2015. During the second quarter of 2015, Addendum No. 2 was submitted, responding to the second round of observations formulated by the SEA. During the third quarter of 2015, the SEA formulated its third round of observations and we decided to postpone sending a response until the end of the year. This decision was made to create opportunities for dialogue and work in partnership with the local community and thus, build a collaborative, transparent and constructive relationship, enabling us to benefit mutually.

We expect construction to start during 2018 and its commissioning is expected for 2021. This project is being financed primarily with internally generated funds. The estimated total investment is Ch$ 186,474 million. The amount invested as of September 30, 2015 was Ch$ 2,776 million.

Distribution Business

As of September 30, 2015, Chilectra has invested Ch$ 55.8 billion, mainly in projects focused on satisfying the increase of energy demand, quality of service, safety and information systems.

During May 2015, the new Chicureo Substation was commissioned, with the energization of Transformer No. 1 and the Chamisero and Piedra Roja feeders. The new 220/23 kV Chicureo Substation, which has an initial capacity of 25 MVA, equivalent of supplying approximately 30,000 homes, includes the construction of a new 6.2 km extension of High Voltage Supply Line.

65

During August 2015, the 220 kV Transmission Line Alto Jahuel – Los Almendros was purchased for an amount of Ch$ 17.7 billion.

Major Encumbrances

As of September 30, 2015, we have full ownership of our assets and they are not subject to material encumbrances.

Climate Change

In recent years, Chile and the region have seen an increase of developments related to NCRE and strategies to combat climate change. This has required both the public and private sectors to adopt strategies in order to comply with the new environmental requirements, as evidenced by legal obligations at the local level, commitments assumed by countries at the international level, and the demanding requirements of the international markets.

NCREs provide energy with minimal environmental impact and without CO₂ emissions. They are therefore considered technological options that strengthen sustainable energy development as they supplement the production of traditional generators.

The Canela wind farm (18 MW, in operation since 2007) and Canela II wind farm (60 MW, in operation since 2009) are the NCRE facilities owned by Endesa Chile which have contributed clean and renewable energy to the SIC. Regarding the development of CO₂ emission reduction mechanisms, the projects in the Clean Development Mechanism (“CDM”) circuit were as follows:

Canela Wind Farm: On April 3, 2009, the United Nations Framework Convention on Climate Change (“UNFCCC”) approved the registration of the Canela project as a CDM project, which recognizes that this wind farm may verify and trade credits for greenhouse gas emissions that it will avoid during its useful life. On February 24, 2014, the UNFCCC approved the issuance of credits for 44,919 tons of CO₂ emissions for the operational period of 2009 through 2011. Certified Emission Reductions (“CERs”) of subsequent periods have not yet been verified.

On August 8, 2013, the Canela wind farm achieved registration under the Gold Standard (“GS”). This allowed Endesa Chile to apply for the GS verification process, which would provide GS Voluntary Emission Reductions (“VER”).

Canela II Wind Farm: On August 12, 2012, the UNFCCC approved the registration of the Canela II project as a CDM project, which recognizes that this wind farm may verify and trade the greenhouse gas emissions that it will avoid during its useful life.

66

Detail of CDM Projects Processed in the Nine Months ended September 30, 2015 by Endesa Chile

CDM project	Company/country	Position as of September 30, 2015	Emission factor (tons CO2e/MWh)	Approximate emissions avoided (tons CO2e/year)(1)
Canela Wind Farm	Central Eólica Canela S.A. (Chile)	Registered with the Executive Authority of the UNFCCC since April 2009. Issuance of 44,919 CERs(2) during the period from 2009 to 2011. Subsequent periods are not yet verified.	0.5713	27,251
Canela Wind Farm	Central Eólica Canela S.A. (Chile)	Registered with the Gold Standard (Voluntary Standard) since August 2013.	0.5713	27,251 (VER not yet verified)(3)
Canela II Wind Farm	Central Eólica Canela S.A. (Chile)	Registered with the Executive Authority of the UNFCCC since August 2012. CDM procedure implemented.	0.6541	89,990

(1) Obtained from the PDD (Project Design Document) of each project.

(2) CER: Certified Emission Reductions.

(3) VER: Voluntary Emission Reductions.

In compliance with the group climate change guidelines, we have secured the certification of our carbon footprint for a fourth time. The Spanish Association of Standards and Certification (Asociación Española de Normalización y Certificación or “AENOR”), an independent certification authority, acknowledged the validity of the methodology. Acknowledgement by AENOR includes verification of the group’s carbon footprint reports from 2009 to 2014. A carbon footprint is the sum of all greenhouse gases (“GHGs”) produced by a company in the course of its business activity. We are striving to reduce our emissions as part of our commitment to combat climate change. The first step involves measuring our carbon footprint.

As part of the process of calculating our carbon footprint, we plan to obtain a GHG inventory, including direct emissions associated with activities controlled by us. We also plan to obtain a GHG inventory of indirect emissions, which are not generated through sources we control but are consequences of our activities.

The tools used to calculate emissions include audits and checks at all of our facilities. This enables us to monitor our carbon footprint throughout the entire electricity supply chain. Calculating the carbon footprint also enables us to identify phases of our activities with the greatest potential to boost energy efficiency and reduce emissions.

Item 4A. Unresolved Staff Comments

None

Item 5. Operating and Financial Review and Prospects

A. Operating Results.

General

The following discussion should be read in conjunction with our combined financial statements and the notes thereto, included in this information statement, and “Selected Financial Data,” included in Item 3 herein. Our audited combined financial statements as of September 30, 2015 and for the nine month then ended have

67

been prepared in accordance with IAS 34, Interim Financial Reporting, as issued by the IASB. Our audited combined financial statements as of December 31, 2014 and 2013 and January 1, 2013 and for the years ended December 31, 2014 and 2013 have been prepared in accordance with IFRS, as issued by the IASB.

1. Discussion of Main Factors Affecting Operating Results and Financial Condition

We own and operate power generation and distribution companies in Chile. Our revenues, income and cash flows come from the operations of the combined companies and associates.

Factors such as (i) hydrological conditions, (ii) fuel prices, (iii) regulatory developments, (iv) exceptional actions adopted by governmental authorities and (v) changes to the economic conditions may materially affect our financial results. In addition, our results from operations and financial condition are affected by variations in the exchange rates between the Chilean peso and the U.S. dollar. We have certain critical accounting policies that affect our combined operating results. The impact of these factors on us, for the periods covered by this information statement, is discussed below.

Since May 2014, we have fully combined GasAtacama Holding and its subsidiaries, including GasAtacama, in our combined financial statements, as a result of Endesa Chile’s purchase of an additional 50% of GasAtacama Holding’s shares from Southern Cross Latin America Private Equity Fund III, L.P., which increased our economic interest in GasAtacama to 60.7%. Before this transaction, the companies were recognized as jointly-controlled companies.

a. Generation Business

A substantial part of our generation capacity depends on the hydrological conditions, although generally only extreme hydrological conditions materially affect our operating results and financial condition. Our installed capacity as of September 30, 2015, September 30, 2014 and December 31, 2014 was 6,351 MW and as of December 2013 amounted to 5,571 MW, of which 54.6% and 62.2%, respectively, was hydroelectric. The 781 MW increase in installed capacity between December 2013 and 2014 is due to the inclusion of GasAtacama since May 2014. See “Item 4. Information on the Company – D. Property, Plant and Equipment.”

Hydroelectric generation was 7,699 GWh and 7,831 GWh in the nine months ended September 30, 2015 and 2014, respectively, a decrease of 132 GWh due to slightly the less favorable hydrological conditions and a higher accumulation of reservoirs. Hydroelectric generation was 11,561 GWh and 9,889 GWh in 2014 and 2013, an increase of 1,672 GWh mainly due to more favorable hydrological conditions. Some important reservoirs are still at low levels due to droughts since 2010, characterized by low rainfalls and a poor snowmelt. Several years of good hydrological conditions are needed to reach historical normal levels.

In order to mitigate hydrological risk, hydroelectric generation had to be substituted with thermal generation (natural gas, LNG, coal or diesel) and energy purchases on the spot market, both of which resulted in higher costs, in order to meet our obligations under contracts with both regulated and unregulated customers.

Our thermal generators burn natural gas, LNG, coal or diesel. We can offset the effect of poor hydrological conditions (reservoir levels, rain and snow) with thermal generation and electricity purchases. Our thermal installed capacity and the ability to purchase electricity from other generators allow us to increase thermal generation and/or purchase electricity from competitors to meet our energy commitments. In addition, given the industry structure and the percentage of hydroelectric generation capacity, when hydrological conditions are poor, electricity prices generally increase. Under certain circumstances, poor hydrological conditions can potentially lead to higher revenues and sometimes, higher operating income.

Operating costs in connection with thermal generation and energy purchases are higher than the variable cost of hydroelectric generation in normal hydrological conditions. The cost of thermal generation does not

68

depend on hydrology but instead on global commodity prices for natural gas, coal, LNG and diesel. However, the cost of electricity purchases in the spot market does depend on hydrology and commodity prices.

The impact of poor hydrological conditions on our operating results depends on the effects of such conditions on the electricity market prices, on our hydroelectric generation, our cost of thermal generation, and our need for energy purchases. The effect of poor hydrological conditions on market prices may increase or decrease our operating margin, depending on several relevant market factors. In recent years, additional thermal capacity has helped to offset poor hydrology, resulting in better operating margins.

For additional information on the effects of hydrological conditions on our operating results, see “Item 3. Key Information — D. Risk Factors — Risks Related to Our Business—Because our generation business depends heavily on hydrological conditions, droughts may adversely affect our profitability.”

Our operating income had been negatively affected by the temporary shutdown of the Bocamina II power plant, which reduced our thermal generation. On December 17, 2013, the local Court of Concepción ordered the shutdown of the power plant in response to claims by some local fishermen’s unions. Bocamina II remained closed until July 1, 2015, when the plant became available to dispatch, after obtaining the required authorization.

b. Distribution Business

Our electricity distribution business is conducted through Chilectra. For the nine months ended September 30, 2015, electricity sales amounted to 11,943 GWh, increasing by 1.4% compared to the same period of 2014. For the year ended December 31, 2014, electricity sales totaled 15,690 GWh, increasing by 3.6% compared to 2013. Currently Chilectra operates in the Santiago metropolitan area, providing electricity to over 1.8 million customers. Santiago is the country’s most densely populated area and has the highest concentration of industries, industrial parks and office facilities in the country. Chilectra faces growing electricity demand, because of organic growth in demand, which obliges it to continually invest in its facilities.

Among the key factors that impact our financial results are regulations. This is especially true when the actions adopted by government authorities define or intervene with directly regulated customer tariffs, or affect the price at which distributors can buy their energy. Our ability to buy electricity relies highly on generation availability and in a lesser degree on government regulation. In the past, we focused on reducing the losses, especially those due to illegally tapped energy, currently at a 5.5% level. We are working on improving our collectability indices and to improve our efficiency.

c. Selective Regulatory Developments

The regulatory framework governing our businesses has a material effect on our results of operations. In particular, regulators set (i) energy prices in the generation business, taking into consideration factors such as fuel costs, reservoir levels, exchange rates, future investments in installed capacity and demand growth, and (ii) distribution tariffs taking into account the costs of energy purchases paid by distribution companies (which distribution companies pass on to their customers) and the “Value Added from Distribution,” or VAD, all of which are intended to reflect investment and operating costs incurred by distribution and generation companies and to allow our companies to earn a regulated level of return on their investments and guarantee service quality and reliability. Our earnings are determined to a large degree by government regulators, mainly through the tariff setting process.

Chilectra’s tariffs will be reviewed in 2016, which presents its own particularities and challenges since tariff reviews seek to capture economies of scale based on economic growth.

For additional information relating to the Chilean regulatory framework, see “Item 4. Information on the Company — B. Business Overview — Chilean Electricity Industry Regulatory Framework.”

69

d. Economic Conditions

Macroeconomic conditions, such as changes in employment levels and inflation or deflation may have a significant effect on our operating results. Macroeconomic factors, such as the variation of the Chilean peso against the U.S. dollar, may impact our operating results, as well as our assets and liabilities, depending on the percentage denominated in U.S. dollars. For example, a devaluation of the Chilean peso against the U.S. dollar increases the cost of capital expenditure plans. For additional information, see “Item 3. Key Information — D. Risk Factors — Risks Related to Our Business—Foreign exchange risks may adversely affect our results and the U.S. dollar value of dividends payable to ADS holders.” and “— Risks Related to Our Business —Chilean economic fluctuations could affect our results from of operations and financial condition as well as the value of our securities.”

Local Currency Exchange Rate

Variations in the parity of the U.S. dollar and the Chilean peso may have an impact on our operating results and overall financial position. The impact will depend on the level at which tariffs are pegged to the U.S. dollar, U.S. dollar-denominated assets and liabilities.

The following table sets forth the closing and average Chilean pesos per U.S. dollar exchange rates for the periods indicated:

	Local Currency U.S. Dollar Exchange Rates
	Nine months ended September 30,								Year ended December 31,
	2015				2014				2014				2013
	Average		Period End		Average		Period End		Average		Year End		Average		Year End
Chile (Chilean pesos per U.S. dollar)		640.39		698.72		561.10		599.22		570.40		606.75		495.18		524.61

Source: Chilean Central Bank

e. Critical Accounting Policies

Critical accounting policies are defined as those that reflect significant judgments and uncertainties which would potentially result in materially different results under different assumptions and conditions. We believe that our critical accounting policies are limited to those described below with reference to the preparation of our combined financial statements under IFRS.

For further detail of the accounting policies and the methods used in the preparation of the combined financial statements, see Notes 2 and 3 of the Notes to our interim combined financial statements

Impairment of Long-Lived Assets

During the year, and principally at the end of each reporting period, we evaluate whether there is any indication that an asset has been impaired. Should any such indication exist, we estimate the recoverable amount of that asset to determine, where appropriate, the amount of impairment. In the case of identifiable assets that do not generate cash flows independently, we estimate the recoverability of the cash generating unit to which the asset belongs, which is understood to be the smallest identifiable group of assets that generates independent cash inflows.

Notwithstanding the preceding paragraph, in the case of cash generating units to which goodwill or intangible assets with an indefinite useful life have been allocated, a recoverability analysis is performed routinely at each period end.

70

The recoverable amount is the greater of (i) the fair value less the cost needed to sell and (ii) the value in use. Value in use” is defined as the present value of the estimated future cash flows. In order to calculate the recoverable value of property, plant and equipment, goodwill and intangible assets, we use value in use criteria in nearly all cases.

To estimate the value in use, we prepare future pre-tax cash flow projections based on the most recent budgets available. These budgets incorporate management’s best estimates of cash generating units, revenues and costs using sector projections, past experience and future expectations.

In general, these projections cover the next five years, estimating cash flows for subsequent years by applying reasonable growth rates, between 4.1% and 5.1%, which in no case are increasing nor exceed the average long-term growth rates for the particular sector.

These cash flows are discounted at a given pre-tax rate in order to calculate their present value. This rate reflects the cost of capital of the business in Chile. The discount rate is calculated taking into account the current time value of money and the risk premiums generally used by market participants for the specific business activity.

The pre-tax nominal discount rates applied as of September 30, 2015 and 2014 and December 31, 2014 and 2013 are as follows:

		Nine months ended September 30,												Year ended December 31,
		2015						2014						2014						2013
Country	Currency	Minimum			Maximum			Minimum			Maximum			Minimum			Maximum			Minimum			Maximum
Chile	Chilean peso		8.7	%		13.1	%		7.8	%		16.3	%		7.9	%		13.0	%		7.8	%		16.3	%

Source: Chilean Central Bank

If the recoverable amount is less than the net carrying amount of the asset, the corresponding impairment loss provision is recognized for the difference, and charged to “Reversal of impairment loss (impairment loss) recognized in profit or loss” in the combined statement of comprehensive income.

Impairment losses recognized for an asset in prior periods are reversed when its estimated recoverable amount changes, increasing the asset’s value with a credit to earnings, limited to the asset’s carrying amount if no adjustment had occurred. In the case of goodwill, any adjustments made are not reversible.

Litigation and Contingencies

We are currently involved in certain legal and tax proceedings. As discussed in Note 24 of the Notes to our interim combined financial statements as of September 30, 2015, we have estimated the probable outflows of resources for resolving these claims to be Ch$16.3 billion. We have reached this estimate after consulting our legal and tax advisors who are carrying out our defense in these matters and an analysis of potential results, assuming a combination of litigation and settlement strategies.

Hedge Revenues Directly Linked to the U.S. Dollar

We have established a policy to hedge the portion of our revenues directly linked to the U.S. dollar by obtaining financing in U.S. dollars. Exchange differences related to this debt, as they are cash flow hedge transactions, are charged net of taxes to an equity reserve account and recorded as income during the period in which the hedged cash flows are realized. This term has been estimated at ten years.

This policy reflects a detailed analysis of our future U.S. dollar revenue streams. Such analysis may change in the future due to new electricity regulations limiting the amount of revenues tied to the U.S. dollar.

71

Pension and Post-Employment Benefit Liabilities

We have various defined benefit plans for our employees. These plans pay benefits to employees at retirement and use formulas based on years of service and employee compensations. We also offer certain additional benefits for some retired employees in particular.

The liabilities shown for the pension and post-employment benefits reflect our best estimate of the future cost of meeting our obligations under these plans. The accounting applied to these defined benefit plans involves actuarial calculations which contain key assumptions that include employee turnover, life expectancy, retirement age, discount rates, the future level of employee compensations and benefits, the claims rate under medical plans and future medical costs. These assumptions change as economic and market conditions vary and any change in any of these assumptions could have a material effect on the reported results from operations.

The effect of an increase of one percentage point in the discount rate used to determine the present value of the post-employment defined benefits would decrease the liability by Ch$ 3.9 billion as of September 30, 2015, and Ch$ 3.9 billion and Ch$ 3.2 billion as of December 31, 2014 and 2013, respectively, and the effect of a decrease of one percentage point in the rate used to determine the present value of the post-employment defined benefits would increase the liability by Ch$ 4.6 billion as of September 30, 2015, and Ch$ 4.6 billion and Ch$ 3.7 billion as of December 31, 2014 and 2013, respectively.

Recent Accounting Pronouncements

Please see Note 2.2 of the Notes to our interim combined financial statements for additional information regarding recent accounting pronouncements.

2. Analysis of Results of Operations for the Nine Months Ended September 30, 2015 and 2014

Revenues

Generation Business

The following table sets forth the electricity sales of Endesa Chile and its subsidiaries and the corresponding changes for the nine months ended September 30, 2015 and 2014.

	Nine months ended September 30,
	2015		2014		Change		Change
	(in GWh)						(in %)
Endesa Chile and subsidiaries		17,311		15,063		2,248		14.9

Distribution Business

Distribution revenues are mainly derived from the resale of electricity purchased from generators. Revenues associated with distribution include the recovery of the cost of electricity purchased and the resulting revenue from the VAD, which is associated with the recovery of costs and the return on the investment with respect to the distribution assets, plus the physical energy losses permitted by the regulator. Other revenues derived from our distribution business consist of charges for new connections and the maintenance and rental of meters, among others.

The following table sets forth the electricity sales of Chilectra Chile and the corresponding changes for the nine months ended September 30, 2015 and 2014.

	Nine months ended September 30,
	2015		2014		Change		Change
	(in GWh)						(in %)
Chilectra Chile		11,943		11,783		160		1.4

72

The table below presents our revenues by business for the nine months ended September 30, 2015 and 2014

	Nine months ended September 30,
	2015			2014			Change			Change
				(unaudited)
	(in millions of Ch$)									(in %)
Generation Business
Endesa Chile and subsidiaries		1,131,407			876,113			255,294			29.1
Distribution Business
Chilectra Chile and subsidiaries		930,399			830,888			99,511			12.0
Non-electricity business and combination adjustments		(299,607	)		(208,139	)		(91,468	)		43.9
Total		1,762,199			1,498,862			263,337			17.6

Generation Business: Revenues

Revenues increased by Ch$ 255.3 billion, or 29.1%, for the first nine months of 2015, mainly due to (i) Ch$ 174.7 billion as a consequence of an 2,248 GWh increase in physical sales, equivalent to a 14.9%, and a higher average energy sale prices of US$ 4/MWh, and (ii) operating revenue contributed for the full 2015 period by our GasAtacama combined entity of Ch$ 80.6 billion, a combined entity, which has been combined only since May 2014.

Distribution Business: Revenues

Revenues from our Chilectra Chile combined entity, increased by Ch$ 99.5 billion, or 12.0%, in the first nine months of 2015 compared to the same period of 2014. This increase is a result of better energy sales of Ch$ 87.3 billion, mainly due to the increase of the tariff to regulated clients and the recognition of prior years’, tariff increases not previously applied, which was reflected in a Ch$ 6.5/MWh (10.3%) increase in the average sale prices, and, to a lesser extent, 160 MWh in higher physical sales.

The number of customers rose by 45,663, compared to the same period last year, totaling 1.7 million.

Operating Costs

Operating costs consist primarily of electricity purchases from third parties, fuel purchases, depreciation, amortization and impairment losses, maintenance costs, tolls paid to transportation expenses and employee salaries. Operating costs also include administrative and selling expenses.

The following table shows the breakdown of our combined operating costs, as a percentage of total combined operating costs, for the nine months ended September 30, 2015 and 2014.

	Nine months ended September 30,
	2015		2014
			(unaudited)
	(in %)
Operating Costs as a Percentage of Total Operating Costs
Electricity purchases		44.7		48.1
Fuel purchases		20.1		18.2
Other variable cost		6.3		2.0
Other fixed costs		5.7		7.3
Depreciation, amortization and impairment losses		8.2		7.4
Transmission tolls		9.0		10.6
Staff benefit costs		6.0		6.4
Total		100.0		100.0

73

Our operating cost structure for the first nine months of 2015 remained similar to that for the same period in 2014, except for the combined electricity purchase expenses that grew less than the total operating cost, 5.1% versus 13.0%, due to a higher average purchase price in the distribution business and the other variable costs that increased as a percentage of total combined operating costs mainly due to the agreement with Gener allowing Endesa Chile to use its available LNG in Gener’s Nueva Renca combined-cycle power plant.

The table below sets forth the breakdown of operating costs (excluding selling and administrative expenses) by business for the nine months ended September 30, 2015 and 2014.

	Nine months ended September 30,
	2015			2014			Change			Change
				(unaudited)
	(in millions of Ch$)									(in %)
Generation Business
Endesa Chile and subsidiaries		712,864			588,935			123,929			21.0
Distribution Business
Chilectra Chile and subsidiaries		725,894			628,679			97,215			15.5
Non-electricity business activities and combination adjustments		(286,931	)		(213,773	)		(73,158	)		34.2
Total		1,151,827			1,003,841			147,986			14.7

Generation Business: Operating Costs

Operating costs increased by Ch$ 123.9 billion, or 21.0%, in the first nine months of 2015, mainly due to higher fuel consumption costs of Ch$ 57.4 billion, mostly as a consequence of the full combination of GasAtacama since May 2014, higher other variable procurement and services of Ch$ 44.3 billion mostly attributable to the Ch$ 25.0 billion cost related to the agreement with Gener that allows Endesa Chile to use its available LNG in Gener’s Nueva Renca combined-cycle power plant, higher transportation costs of Ch$ 16.1 billion, higher water transportation costs for the operation of the San Isidro power plant of Ch$ 9.4 billion and greater purchases of energy on the spot market of Ch$ 6.1 billion.

Distribution Business: Operating Costs

Operating costs of Chilectra Chile increased by Ch$ 97.2 billion, or 15.5%, for the first nine months of September 30, 2015, mainly due to greater energy purchases of Ch$ 84.6 billion to cover energy sales, primarily due to a higher average purchase price (Ch$6.1 /GWh) and also because of a 160 GWh increase in the physical purchases compared to the previous period. In addition, the operation costs increase was impacted by the higher expenses on account of variable procurement and services costs of Ch$ 10.7 billion.

Selling and Administrative Expenses

Selling and administrative expenses relate to salaries, compensation, administrative expenses, depreciation, amortization and impairment losses, and office materials and supplies.

74

The following table shows the breakdown of our combined selling and administrative expenses, as a percentage of total combined selling and administrative expenses, for the nine months ended September 30, 2015 and 2014.

	Nine months ended September 30,
	2015		2014
			(unaudited)
	(in %)
Selling and Administrative Expenses as a Percentage of Total Selling and Administrative Expenses
Other fixed costs		28.9		34.8
Staff benefit costs		30.1		30.0
Depreciation, amortization and impairment losses		41.0		35.2
Total		100.0		100.0

The table below sets forth the breakdown of selling and administrative expenses by business for the nine months ended September 30, 2015 and 2014:

	Nine months ended September 30,
	2015		2014		Change			Change
			(unaudited)
	(in millions of Ch$)							(in %)
Generation Business
Endesa Chile and subsidiaries		189,191		161,080		28,111			17.5
Distribution Business
Chilectra Chile and subsidiaries		92,424		91,649		775			0.8
Non-electricity business and combination adjustments		4,384		15,857		(11,473	)		(72.4	)
Total		285,999		268,586		17,413			6.5

Selling and administrative expenses increased by Ch$ 17.4 billion, or 6.5%, in the first nine month of 2015, mainly due to higher charges for depreciation of Ch$ 20.1 billion in the generation business from the inclusion of GasAtacama and from higher expense capitalization carried out during the second half of 2014 in San Isidro II, Bocamina II and Tal Tal.

Operating Income

The following table summarizes operating income by business for the nine months ended September 30, 2015 and 2014.

	Nine months ended September 30,
	2015			2014			Change			Change
				(unaudited)
	(in millions of Ch$)									(in %)
Generation Business
Endesa Chile and subsidiaries		229,352			126,098			103,254			81.9
Distribution Business
Chilectra Chile and subsidiaries		112,081			110,560			1,521			1.4
Non-electricity business and combination adjustments		(17,060	)		(10,223	)		(6,837	)		(66.9	)
Total		324,373			226,435			97,938			43.2

75

Other Results

The following table shows the other results for the nine months ended September 30, 2015 and 2014.

	Nine months ended September 30,
	2015			2014			Change			Change
				(unaudited)
	(in millions of Ch$)									(in %)
Financial results
Financial income		11,075			9,125			1,950			21.4
Financial costs		(52,291	)		(58,022	)		5,731			9.9
Gain for indexed assets and liabilities		3,320			3,089			231			7.5
Net foreign currency exchange differences		(45,890	)		(13,734	)		(32,156	)		(234.1	)
Total		(83,785	)		(59,542	)		(24,243	)		(40.7	)
Other
Gain on sale of non-current assets not held for sale		6,694			47,755			(41,061	)		(86.0	)
Share of the profit of associates accounted for using the equity method		7,483			7,729			(246	)		(3.3	)
Total		14,177			55,484			(41,307	)		(25.6	)
Other results		(69,609	)		(4,058	)		(65,551	)		(94.2	)

Financial Results

The net financial results for the first nine months of 2015 was an expense of Ch$ 83.8 billion, an increase of Ch$ 24.2 billion, or 40.7%, in comparison to the same period in 2014. This increase was due to increased charges for foreign currency exchange differences of Ch$ 32.2 billion, as a result of an increase in the exchange rate between the Chilean peso against the US dollar that affects the valuation of financial debt and derivative instruments.

Gain on sale of non-current assets not held for sale (Other gains)

The gain on asset sales for the first nine months of 2015 was Ch$ 6.7 billion, a decrease of Ch$ 41.1 billion from the same period in 2014. The primary reason for the reduction in thesenon-operating results is thenon-recurring gain of Ch$ 42.6 billion recorded in the first nine months of 2014 arising from the revaluation of the 50% pre-existing investments in Gas Atacama and as a result of the recognition of its accumulated currency exchange differences, as explained in Notes 5 and 32 of the Notes to our interim combined financial statements. In January 2015, we recorded an income of Ch$ 4.2 billion net result from the sale of Túnel El Melón that partially offset the negative variation in comparison with the same period in 2014.

Corporate Income Tax

Corporate income tax decreased Ch$ 45.1 billion, for the first nine month of 2015 or 44.0%, to Ch$ 82.9 billion, compared to the same period in 2014. The effective tax rate was 22.6% for the first nine months of 2015 and 46.1% for the same period in 2014. The decrease in corporate income tax expenses was mainly due to the lower recognition of net deferred tax liabilities of the Chilean companies following the tax reform enacted in Chile on September 29, 2014, which established a gradual increase in the taxation rate. For more information see Note 34 of the Notes to our interim combined financial statements and “Item 10. Additional Information —E. Taxation — Chilean Tax Considerations.”

76

Net Income

The following table sets forth our combined net income before tax, income tax and net income for the periods indicated.

	Nine months ended September 30,
	2015			2014			Change			Change
				(unaudited)
	(in millions of Ch$)									(in %)
Operating income		324,373			226,435			97,938			43.3
Other results		(69,608	)		(4,058	)		(65,551	)		n.a.
Net income before taxes		254,765			222,377			32,288			14.6
Income tax		(57,497	)		(102,595	)		45,098			44.0
Net income		197,268			119,782			77,486			64.7
Net income attributable to the Parent Company Chile		149,907			96,244			53,663			55.8
Net income attributable to non-controlling interests		47,361			23,538			23,823			101.2

For a breakdown of the net income by business, see Note 35.2 of the Notes to our interim combined financial statements.

3. Analysis of Results of Operations for the Years Ended December 31, 2014 and 2013.

Revenues

Generation Business

The following table sets forth the electricity sales of Endesa Chile and its subsidiaries and the corresponding changes for the years ended December 31, 2014 and 2013.

	Years ended December 31,
	2014		2013		Change		Change
	(in GWh)						(in %)
Endesa Chile and subsidiaries		21,157		20,406		751		3.7	%

Distribution Business

The following table sets forth the electricity sales of Chilectra and the corresponding changes for the years ended December 31, 2014 and 2013.

	Years ended December 31,
	2014		2013		Change		Change
	(in GWh)						(in %)
Chilectra Chile		15,690		15,140		550		3.6	%

77

The table below presents our revenues by business segment for the years ended December 31, 2014 and 2013.

	Years ended December 31,
	2014			2013			Change			Change
	(in millions of Ch$)									(in %)
Generation Business
Endesa Chile and subsidiaries		1,220,566			959,787			260,779			27.2
Distribution Business
Chilectra Chile and subsidiaries		1,127,893			975,024			152,869			15.7
Non-electricity business and combination adjustments		(299,394	)		(196,728	)		(102,666	)		52.2
Total		2,049,065			1,738,083			310,982			17.9

Generation Business: Revenues

Revenues increased by Ch$ 260.8 billion, or 27.2% in 2014, mainly due (i) Ch$ 147.8 billion as a consequence of an increase in physical sales of 3.7% and a 29.5% increase in average energy sales prices, and (ii) operating revenue contributed by our GasAtacama subsidiary of Ch$ 113.0 billion, a combined entity which has been combined since May 2014.

Distribution Business: Revenues

Revenues from our Chilectra Chile combined entity increased by Ch$ 152.9 billion, or 15.7%, in 2014 as a result of greater physical energy sales of 550 GWh due to lower temperatures than the previous year. Sales in 2014 amounted to 15,690 GWh. The number of customers rose by 43,375, totaling 1.7 million.

Operating Costs

Operating costs consist primarily of electricity purchases from third parties, fuel purchases, depreciation, amortization and impairment losses, maintenance costs, tolls paid to transmission companies, and employee salaries. Operating costs also include administrative and selling expenses.

The following table shows the breakdown of our operating costs, as a percentage of total operating costs, for the years ended December 31, 2014 and 2013.

	Years ended December 31,
	2014		2013
	(in %)
Operating Costs as a Percentage of Total Operating Costs
Electricity purchases		47.3		42.2
Fuel purchases		18.3		15.7
Other variable cost		3.8		2.7
Other fixed costs		6.7		8.5
Depreciation, amortization and impairment losses		8.5		9.5
Transmission tolls		9.1		13.6
Staff benefit costs		6.3		7.8
Total		100.0		100.0

Our 2014 operating cost structure remained similar to our 2013 operating cost structure, except for the electricity purchases that increased due to the stoppage of Bocamina II since December 2013.

78

The table below sets forth the breakdown of operating costs (excluding selling and administrative expenses) by business for the years ended December 31, 2014 and 2013:

	Years ended December 31,
	2014			2013			Change			Change
	(in millions of Ch$)									(in %)
Generation Business
Endesa Chile and subsidiaries		750,213			494,892			255,321			51.6
Distribution Business
Chilectra Chile and subsidiaries		855,758			712,458			143,300			20.1
Non-electricity business and combination adjustments		(296,569	)		(208,446	)		(88,123	)		(42.3	)
Total		1,309,402			998,904			310,498			31.1

Generation Business: Operating Costs

Operating costs of Endesa Chile increased by Ch$ 255.3 billion, or 51.6%, in 2014, mainly due to greater purchases of energy on the spot market of Ch$ 164.0 billion, principally as a consequence of the stoppage of Bocamina II coal fired power plant since December 2013, and higher fuel consumption costs of Ch$ 93.9 billion mainly as a consequence of the full inclusion of GasAtacama since May 2014, which added Ch$ 53.9 billion of fuel consumption costs and higher other variable procurement and services of Ch$ 4.0 billion, partially compensated by lower transportation costs of Ch$ 6.6 billion.

Distribution Business: Operating Costs

Operating costs of Chilectra Chile increased by Ch$ 143.3 billion, or 20.1%, in 2014, mainly due to greater energy purchases of Ch$ 137.9 billion to cover the physical energy sales, explained by Ch$ 6.9/GWh higher average purchase price as well as 589 GWh higher physical purchases in comparison to 2013.

Selling and Administrative Expenses

Selling and administrative expenses relate to salaries, compensation, administrative expenses, depreciation, amortization and impairment losses, and office materials and supplies.

The following table shows the breakdown of our combined selling and administrative expenses, as a percentage of total combined selling and administrative expenses, for the years ended December 31, 2014 and 2013:

	Years ended December 31,
	2014		2013
	(in %)
Selling and Administrative Expenses as a Percentage of Selling and Administrative Expenses
Other fixed costs		30.9		32.9
Staff benefit costs		29.4		30.3
Depreciation, amortization and impairment losses		39.7		36.8
Total		100.0		100.0

79

The table below sets forth the breakdown of selling and administrative expenses by business for the years ended December 31, 2014 and 2013:

	Years ended December 31,
	2014		2013		Change			Change
	(in millions of Ch$)							(in %)
Generation Business
Endesa Chile and subsidiaries		224,627		202,030		22,597			11.2
Distribution Business
Chilectra Chile and subsidiaries		118,028		122,503		(4,475	)		(3.7	)
Non-electricity business and combination adjustments		14,258		23,023		(8,765	)		(61.9	)
Total		356,913		347,556		9,357			2.7

Selling and administrative expenses increased by Ch$ 9.4 billion, or 2.7%, in 2014, mainly due to higher charges for depreciation and impairment of Ch$ 21.2 billion in the generation business, which includes Ch$ 12.6 billion of impairment losses with respect to the Punta Alcalde project. On January 29, 2015, we halted development of the power plant and the related transmission project, in light of the changes requested by the Chilean Court, which may require major modifications to the approved RCA in order to make the project economically and technologically more sustainable. The above was offset by lower depreciation and impairment losses in Chilectra of Ch$ 7.2 billion.

Operating Income

The following table summarizes operating income by business for the years ended December 31, 2014 and 2013.

	Years ended December 31,
	2014			2013			Change			Change
	(in millions of Ch$)									(in %)
Generation Business
Endesa Chile and subsidiaries		245,726			262,865			(17,139	)		(6.5	)
Distribution Business
Chilectra Chile and subsidiaries		154,107			140,063			14,044			10.0
Non-electricity business and combination adjustments		(17,083	)		(11,305	)		(5,778	)		(51.1	)
Total		382,750			391,623			(8,873	)		(2.3	)

80

Other Results

The following table shows the other results for the years ended December 31, 2014 and 2013.

	Years ended December 31,
	2014			2013			Change			Change
	(in millions of Ch$)									(in %)
Financial results
Financial income		14,763			13,651			1,112			8.1
Financial costs		(75,626	)		(69,769	)		(5,857	)		(8.4	)
Gain for indexed assets and liabilities		15,264			1,593			13,671			n.a.
Net foreign currency exchange differences		(21,444	)		(1,838	)		(19,606	)		n.a.
Total		(67,045	)		(56,363	)		(10,682	)		19.0
Other
Total gain on sale of non-current assets not held for sale		70,893			14,528			56,365			n.a.
Share of the profit (loss) of associates and joint ventures accounted for using the equity method		(54,353	)		24,309			(78,661	)		n.a.
Total		16,540			38,837			(22,297	)		(57.6	)
Other results		(50,504	)		(17,526	)		(32,978	)		(188.5	)

Financial Results

The net financial results for 2014 was an expense of Ch$ 67.0 billion. The expense increased Ch$ 10.7 billion, or 19.0%, in comparison to 2013. This is mainly explained by: (i) increased charges for foreign currency exchange differences of Ch$ 19.6 billion, as a result of an increase in the exchange rate between the Chilean peso against the US dollar, that affects the valuation of financial debt and derivative instruments, (ii) higher financial cost of Ch$ 5.9 billion, mainly due the increase in the financial debt. This was partially offset by a gain for indexation adjustments of Ch$ 13.7 billion mainly due to the positive variation of financial derivatives asset position over the UF.

Gain on sale of non-current assets not held for sale (Other gains)

Gains from non-current assets not held for sale increased by Ch$ 56.4 billion, mainly due to the recognition of a Ch$ 42.5 billion gain arising from the revaluation of the 50% pre-existing investment participation in GasAtacama and as a result of the recognition of its accumulated currency exchange differences, as explained in Notes 5 and 32 of the Notes to our combined financial statements, and a Ch$ 21.1 billion gain on the sale of Los Maitenes and Aguas Santiago Poniente (Enea Project in former Manso de Velasco), partially offset by reduced sales of investment properties and transmission lines of Ch$ 11.0 billion.

Results of Associates and Joint Ventures Accounted for Using the Equity Method

The share of profits of associates accounted for using the equity method decreased by Ch$ 78.7 billion, mainly as a result of the impairment in the HidroAysén project of Ch$ 69.1 billion due to Endesa Chile’s decision not to proceed with this project. This decision was based on the uncertainty of recovering the investment made in the project, mainly as a consequence of the long judicial process in order to obtain environmental approvals. This result also decreased Ch$13.9 billion as a result of combination of GasAtacama Holding. Such decreases were partially offset by an increase of Ch$ 4.4 billion relating to Electrogas.

As a result of all the foregoing, total non-operating results for 2014 amounted to an expense of Ch$ 50.5 billion.

81

Corporate Income Tax

Corporate income tax increased by Ch$ 71.0 billion mainly due to (i) increased charges of Ch$ 62.0 billion resulting from the recognition of net deferred tax liabilities of the Chilean companies mainly following the tax reform enacted in Chile on September 29, 2014, which establishes a gradual increase in the taxation rate, (ii) the additional net income due to the combination of GasAtacama that implied additional income tax by Ch$ 10.2 billion.

The effective tax rate was 39.9% in 2014 and 16.5% for the same period in 2013. For more information see Note 34 of the Notes to our combined financial statements and “Item 10. Additional Information —E. Taxation — Chilean Tax Considerations.”

Net Income

The following table sets forth our combined net income before tax, income tax and net income for the periods indicated.

	Years ended December 31,
	2014			2013			Change			Change
	(in millions of Ch$)									(in %)
Operating income		382,750			391,623			(8,873	)		(2,3	)
Other results		(50,504	)		(17,526	)		(32,978	)		(188.5	)
Net income before taxes		332,246			374,097			(41,851	)		(11.2	)
Income tax		(132,687	)		(61,712	)		(70,975	)		(115.0	)
Net income		199,559			312,385			(112,826	)		(36.1	)
Net income attributable to the Parent Company		162,459			229,527			(67,068	)		(29.2	)
Net income attributable to non-controlling interests		37,100			82,858			(45,758	)		(55.2	)

For a breakdown of the net income by business, see Note 35.2 of the Notes to our combined financial statements.

B. Liquidity and Capital Resources.

We will have no significant assets other than the stock of our Chilean combined entities. The following discussion of cash sources and uses reflects the key drivers of our cash flow.

We, on a stand-alone basis, will receive cash inflows from our Chilean combined entities, as well as from related companies in Chile. Cash flows of our associates may not be available to satisfy our own liquidity needs, mainly because they are not wholly-owned, and because there is a time lag before we have effective access to those funds through dividends or capital reductions. However, we believe that cash flow generated from our business operations, as well as cash balances, borrowings from commercial banks, and ample access to both Chilean and foreign capital markets will be sufficient to satisfy all our needs for working capital, expected debt service, dividends and planned capital expenditures in the foreseeable future.

We have a direct ownership in Endesa Chile (60.0%) and Chilectra Chile (99.1%), our main combined combined entities.

82

Set forth below is a summary of our combined cash flow information for the periods indicated:

	Nine months ended September 30,						Year ended December 31,
	2015			2014			2014			2013
				(unaudited)
	(in billions of Ch$)
Net cash flows from (used in) operating activities		334			77			265			443
Net cash flows from (used in) investing activities		(468	)		(177	)		(189	)		(106	)
Net cash flows from (used in) financing activities		83			(54	)		(159	)		(216	)
Net increase (decrease) in cash and cash equivalents before effect of exchange rates changes		(52	)		(154	)		(83	)		120
Effects of exchange rate changes on cash and cash equivalents		4			7			1			0.4
Cash and cash equivalents at beginning of period		133			215			215			94
Cash and cash equivalents at end of period		85			68			133			215

For the nine months ended September 30, 2015, net cash flow from operating activities was Ch$ 334 billion, an increase of Ch$ 258 billion, or 335.4%, compared to Ch$ 77 billion for the same period of 2014, primarily as a consequence of an increase in collections from the sale of goods and services of Ch$ 525 billion, which was partially offset by an increase in payments to suppliers for goods and services of Ch$ 127 billion, an increase in income tax payments of Ch$ 86 billion, an increase in payments to and on behalf of employees of Ch$ 15 billion and an increase in other payments for operating activities of Ch$ 34 billion.

For the year ended December 31, 2014, net cash flow from operating activities was Ch$ 265 billion, a decrease of Ch$ 178 billion, or 48.8%, compared to net cash flow from operating activities of Ch$ 443 billion for 2013, primarily as a consequence of an increase in payments to suppliers for goods and services of Ch$ 392 billion, a decrease in collections from insurance policies and services, annual payments, and other benefits from policies held of Ch$ 74 billion, an increase in payments to and on behalf of employees of Ch$ 12 billion and a decrease in other collections for operating activities of Ch$ 16 billion, all of which were partially offset by the increase in collections from the sale of goods and services of Ch$ 282 billion and a decrease in income tax payments of Ch$ 34 billion.

For the nine months ended September 30, 2015, net cash used in investing activities was Ch$ 468 billion, compared to net cash used in investing activities of Ch$ 177 billion for the same period of 2014. The increase was mainly due to the acquisition of fixed assets totaling Ch$ 253 billion (see “Item 4. Information of the Company — A. History and Development of the Company — Investment, Capital Expenditures and Divestitures”), collections of loans of related entities for Ch$ 228 billion, all of which were partially offset by proceeds from dividends classified as investment cash flow of Ch$ 9 billion, loss of control of combined entities for Ch$ 7 billion, due to the sale of all of our shareholdings in Túnel El Melon, and interest received of Ch$ 1 billion.

For the year ended December 31, 2014, net cash used in investing activities was Ch$ 189 billion, compared to net cash used in investing activities of Ch$ 106 billion for 2013. The increase was mostly due to the acquisition of fixed assets totaling Ch$ 197 billion (see “Item 4. Information of the Company — A. History and Development of the Company — Investment, Capital Expenditures and Divestitures”), the inclusion of GasAtacama, after the purchase of an additional 50% participation, of Ch$ 38 billion, a decrease of collections from derivatives contracts of Ch$ 17 billion and investments in time deposits with a maturity greater than 90 days of Ch$ 16 billion, all of which were partially offset by the loss of control of combined entities for Ch$ 41 billion, due to the sale of all the shareholdings in Maitenes and Aguas Santiago Poniente, proceeds from dividends classified as investment cash flow of Ch$ 13 billion and interest received of Ch$ 4 billion.

For the nine months ended September 30, 2015, net cash from financing activities was Ch$ 83 billion. The main drivers of this change are described below.

83

The aggregate cash inflows from financing activities were primarily due to Ch$ 409 billion in loans from related entities, mainly to Endesa Chile, offset by cash outflows primarily due to:

• Ch$ 137 billion of payments of bonds for Endesa Chile on a stand-alone basis.

• Ch$ 133 billion in dividend payments (including Ch$ 102 billion for Enersis on a stand-alone basis, Ch$ 22 billion for Endesa Chile on a stand-alone basis, excluding dividends paid to Enersis and Ch$ 8 billion for Pehuenche, among others).

• Ch$ 44 billion of interest expense, mainly for Endesa Chile on a stand-alone basis.

• Ch$ 8 billion of net investment of parent companies

For the nine months ended September 30, 2014, net cash used in financing activities was Ch$ 54 billion. The main drivers of this change are described below.

The aggregate cash outflows from financing activities were primarily due to:

• Ch$ 158 billion in dividend payments (including Ch$ 114 billion for Enersis on a stand-alone basis, Ch$ 35 billion for Endesa Chile on a stand-alone basis, excluding dividends paid to Enersis and Ch 6 billion for Pehuenche, among others).

• Ch$ 115 billion of payments of loans and bonds for Endesa Chile on a stand-alone basis.

• Ch$ 42 billion of interest expense, mainly for Endesa Chile on a stand-alone basis.

• Ch$ 10 billion of net investment of parent companies

These outflows were offset by cash inflows primarily due to:

• Ch$ 222 billion in bond issuances carried out by Endesa Chile.

• Ch$ 56 billion in loans from related entities.

For the year ended December 31, 2014, net cash used in financing activities was Ch$ 159 billion. The main drivers of this change are described below.

The aggregate cash outflows from financing activities were primarily due to:

• Ch$ 161 billion in dividend payments (including Ch$ 115 billion for Enersis on a stand-alone basis, Ch$ 35 billion for Endesa Chile on a stand-alone basis and Ch$ 8 billion for Pehuenche, among others, excluding dividends paid to Enersis).

• Ch$ 159 billion of payments of loans from related entities.

• Ch$ 118 billion of payments of loans, bonds for Endesa Chile on a stand-alone basis.

• Ch$ 63 billion of interest expense mainly in Endesa Chile on a stand-alone basis.

These outflows were offset by cash inflows primarily due to:

• Ch$ 222 billion in bond issuances carried out by Endesa Chile.

• Ch$ 131 billion of net investment of parent companies.

For the year ended December 31, 2013, net cash used in financing activities was Ch$ 216 billion. The main drivers of this change are described below.

84

The aggregate cash outflows from financing activities were primarily due to:

• Ch$ 213 billion of payments of loans, bonds and other and other financial instruments for Endesa Chile on a stand-alone basis.

• Ch$ 101 billion in dividend payments (including Ch$ 79 billion for Enersis Chile on a stand-alone basis, Ch$ 13 billion for Endesa Chile on a stand-alone basis, excluding dividends paid to Enersis and Ch$ 7 billion for Pehuenche, among others).

• Ch$ 59 billion of interest expense mainly for Endesa Chile on a stand-alone basis.

• Ch$ 37 billion of net investment of parent companies.

These outflows were offset by cash inflows primarily due to Ch$ 199 billion in loans from related entities.

For a description of liquidity risks resulting from the inability of our combined entities to transfer funds, please see “Item 3. Key Information — D. Risk Factors — Risks Related to Our Business — We depend in part on payments from our combined entities, jointly-controlled entities and associates to meet our payment obligations.”

We coordinate the overall financing strategy of our controlled combined entities. Our operating combined entities independently develop their capital expenditure plans and finance their capital expansion programs through internally generated funds or direct financings. We have no legal obligations or other commitments to financially support our combined entities. We currently have no debt obligations and are therefore not affected by any cross default provisions that could be triggered by combined entity defaults. Our combined entities are financed by us through intercompany loans. For information regarding our commitments for capital expenditures, see “Item 4. Information on the Company — A. History and Development of the Company — Investments, Capital Expenditures and Divestitures” and our contractual obligations table set forth below.

After completion of theSpin-Off, we will have American Depositary Shares, which we intend to list and trade on the NYSE and may in the future access the international equity capital markets (including SEC-registered ADS offerings) while our combined entity Endesa Chile has accessed the international equity capital markets, with an SEC-registered ADS offering on August 3, 1994. Endesa Chile has also issued bonds in the United States (“Yankee Bonds”) and we and Endesa Chile may issue Yankee Bonds depending on liquidity needs in the future. Since 1996, Endesa Chile and its subsidiary Pehuenche have issued a total of US$ 2,770 million in Yankee Bonds.

The following table lists the Yankee Bonds issued by our combined entity Endesa Chile and the aggregate principal amount outstanding as of September 30, 2015. The weighted average annual coupon interest rate for such bonds is 5.8%, without giving effect to each bond’s duration, or put options.

						Aggregate Principal Amount
Issuer	Term	Maturity	Coupon			Issued		Outstanding
			(%)			(in millions of US$)
Endesa Chile	10 years	April 2024		4.250			400		400
Endesa Chile(1)	30 years	February 2027		7.875			230		206
Endesa Chile(2)	40 years	February 2037		7.325			220		71
Endesa Chile(1)	100 years	February 2097		8.125			200		40
Total				6.426	(3)		1,250		717

(1) Endesa Chile repurchased some of these bonds in 2001.

(2) Holders of the Endesa Chile 7.325% Yankee Bonds due 2037 exercised a put option on February 1, 2009 for a total amount of US$ 149.2 million. The remaining US$ 70.8 million principal amount of the Yankee Bonds mature in February 2037.

(3) Weighted-average coupon.

85

We will have access to the Chilean domestic capital markets. Endesa Chile has issued debt instruments in Chile, including commercial paper and medium and long-term bonds that are primarily sold to Chilean pension funds, life insurance companies and other institutional investors.

The following table lists UF-denominated Chilean bonds issued by Endesa Chile that are outstanding as of September 30, 2015.

Issuer	Term		Maturity	Coupon (inflation adjusted rate)			Aggregate Principal Amount
							Issued		Outstanding
				(%)			(in millions of UF)		(in millions of UF)		(in billions of Ch$)
Endesa Chile Series H		25 years	October 2028		6.20			4.0		2.9		72
Endesa Chile Series M		21 years	December 2029		4.75			10.0		10.0		254
Total					5.07	(1)		14.0		12.9		326

(1) Weighted-average coupon.

For a full description of local bonds issued by Endesa Chile, see “Unsecured liabilities detailed by currency and maturity” in Note 20 of the Notes to our interim combined financial statements.

We may also participate in the international commercial bank markets through syndicated senior unsecured loans, including both fixed term and revolving credit facilities. As of September 30, 2015, the amount outstanding or available for these bank loans is listed below:

Borrower	Type	Maturity		Facility Amount		Amount Drawn
				(in millions of US$)		(in millions of US$)
Endesa Chile	Syndicated revolving loan		July 2019		200		—

The Endesa Chile revolving credit facility due July 2019 does not contain a condition precedent requirement regarding the non-occurrence of a “Material Adverse Effect” (or MAE, as defined contractually) prior to a disbursement, allowing us full flexibility to draw on up to US$ 200 million in the aggregate from such committed revolving facility under any circumstances, including situations involving an MAE.

We and Endesa Chile also borrow from banks in Chile under fully committed facilities in which a potential MAE would not be an impediment to this source of liquidity. In early 2013, Endesa Chile entered into 3-year bilateral revolving loans for an aggregate of UF 2.4 million (Ch$ 86 billion as of September 30, 2015) as described below.

Borrower	Type	Maturity		Facility Amount		Amount Drawn
				(in millions of UF$)		(in billions of UF$)
Endesa Chile	Bilateral revolving loan		February 2016		2.4		—

We and Endesa Chile also borrow routinely from uncommitted Chilean bank facilities with approved lines of credit for approximately Ch$ 113 billion in the aggregate, of which Ch$ 578,311 are drawn. Unlike the committed lines described above, which are not subject to MAE conditions precedent prior to disbursements, these facilities are not guaranteed , and therefore could limit our liquidity under certain circumstances. Our combined entities also have access to uncommitted local bank facilities, for a total amount of Ch$ 97 billion, of which Ch$ 30,000 are drawn.

Both we and Endesa Chile may also access the Chilean commercial paper market under programs that need to be registered with the SVS. Endesa Chile has an outstanding program for a maximum of US$ 200 million. Finally, we can also have access to other types of financing, including supplier credits, leasing, among others.

86

As of September 30, 2015, we had no debt obligations and are therefore not affected by any covenants or events of default. Endesa Chile’s outstanding debt facilities, with the exception of their Yankee Bonds, include financial covenants. The types of financial covenants, and their respective limits, vary from one type of debt to another. As of September 30, 2015, the most restrictive financial covenant affecting Endesa Chile was the leverage ratio in connection with the bilateral revolving loan facility that matures in February 2016. Under such covenant, the maximum additional debt that could be incurred without a breach is Ch$ 1,167 billion. As of September 30, 2015 and as of the date of this information statement, our combined entities are in compliance with the financial covenants contained in our combined debt instruments.

As is customary for certain credit and capital market debt facilities, a significant portion of Endesa Chile’s financial indebtedness is subject to cross default provisions. Each of the revolving credit facilities described above, as well as all of Endesa Chile’s Yankee Bonds, have cross default provisions with different definitions, criteria, materiality thresholds, and applicability as to the combined entities that could give rise to a cross default.

The cross default provision for the Endesa Chile revolving credit facilities due in July 2019, governed by the laws of the State of New York, refers to defaults of the borrower, without reference to any combined entity. Under such credit facilities, only matured defaults of the borrower exceeding US$ 50 million qualify for a potential cross default when the principal exceeds US$ 50 million, or its equivalent in other currencies. In the case of a matured default above the materiality threshold, the revolving credit facility’s lenders would have the option to accelerate if lenders representing more than 50% of the aggregate debt of a particular outstanding facility choose to do so.

Endesa Chile local facilities due in February 2016 do not have cross default provisions to debt other than the respective borrower’s own indebtedness.

Cross default provisions of Endesa Chile’s Yankee Bonds may be triggered by its Chilean subsidiaries’ debt. A matured default of Endesa Chile or one of its subsidiaries could result in a cross default to Endesa Chile’s Yankee Bonds if such matured default, on an individual basis, has a principal exceeding US$ 30 million, or its equivalent in other currencies. In the specific case of the Endesa Chile’s Yankee Bond issued in April 2014, maturing in 2024, the threshold is US$ 50 million, or its equivalent in other currencies. In the case of a matured default above the materiality threshold, Yankee bondholders would have the option to accelerate if either the trustee or bondholders representing at least 25% of the aggregate debt of a particular series then outstanding choose to do so. Finally, Endesa Chile’s local bonds do not have cross default provisions arising from its subsidiaries.

All of Endesa Chile’s Yankee Bonds, including those registered with the United States Securities and Exchange Commission, are unsecured and not subject to any guarantees by any of our combined entities or parent companies.

Payment of dividends and distributions by our combined entities and affiliates represent an important source of funds for us. The payment of dividends and distributions by certain combined entities and affiliates are subject to legal restrictions, such as legal reserve requirements, and capital and retained earnings criteria, and other contractual restrictions. Legal counsel in the countries where our combined entities and affiliates operate have informed us of the current legal restrictions regarding the payment of dividends or distributions to us in the jurisdictions where such combined entities or affiliates are incorporated. We are currently in compliance with the legal restrictions, and therefore, they currently do not affect the payment of dividends or distributions to us. Certain credit facilities and investment agreements of our combined entities restrict the payment of dividends or distributions in certain special circumstances. For instance, one of Endesa Chile’s UF-denominated Chilean bonds restricts the amount of intercompany loans that Endesa Chile and its subsidiaries are allowed to lend to us. The threshold for such restriction of intercompany loans is US$ 100 million equal to approximately Ch$ 70 billion. For a description of liquidity risks resulting from our company status, please see “Item 3. Key Information — D. Risk factors — Risks Related to Our Business — We depend in part on payments from our combined entities, jointly-controlled entities and associates to meet our payment obligations.”

87

Our estimated capital expenditures for 2016 through 2020 amount to Ch$ 1,298 billion, of which Ch$ 1,238 billion are considered non-discretionary investments. We include maintenance capital expenditures as non-discretionary because it is important for us to maintain the quality and operation standards required for our facilities, but we do have some flexibility regarding the timing for these investments. We consider the investment in expansion projects under execution as non-discretionary expenditures, such as those for Los Cóndores and Bocamina II, as well as water rights. We consider the remaining Ch$ 60 billion as discretionary capital expenditures. The latter includes expansion projects that are still under evaluation, in which case we would undertake them only if deemed profitable.

We do not currently anticipate liquidity shortfalls affecting our ability to satisfy the material obligations described in this information statement. We expect to be able to refinance our combined indebtedness as it becomes due, fund our purchase obligations outlined previously with internally generated cash and fund capital expenditures with a mixture of internally generated cash and borrowings.

C. Research and Development, Patents and Licenses, etc.

None.

D. Trend Information.

Our combined entities are engaged in the generation and distribution of electricity in Chile. Our businesses are subject to a wide range of conditions that may result in significant variability in our earnings and cash flows from year to year.

Our net income is a result of our operating income from our generation and distribution businesses and other inputs such as income from uncombined related companies and tax expense. In our generation business, our operating income for the nine months ended September 30, 2015 increased by 81.9 % as compared to 2014. This percent change in the generation segment’s operating income during the nine-month period ended as of September 30, 2015 varies due to numerous factors, including hydrological conditions, the price of fuel used to generate thermal electricity, and the prevailing regulated and spot market prices for electricity.

We expect reasonably good operating performance during the coming years given the favorable macroeconomic perspective for Chile. Despite current uncertainties concerning the global economy, there is favorable expectation for Chile’s growth during the next five years, including an expected 2.2% growth in gross domestic product in 2015, based on Latin American Consensus Forecasts published by Consensus Economics Inc. on September 14, 2015, and a stable electricity demand growth.

On the other hand, development of new generation facilities in Chile has always lagged behind demand growth. However, due to growing environmental restrictions, transmission line saturation, obstacles for fuel transportation, and scarcity of places where to locate plants, these new projects involve higher development costs than in the past. Enel, our ultimate controller both before and after the Spin-Off, has announced that it will no longer build coal power plants because it considers the technology to be obsolete, and the company expects to be carbon neutral by 2050. Eventually, Enel would like to also eliminate natural gas power plants because of the CO₂ costs and current carbon capture and storage technology is not economically viable.

We expect that average electricity prices will rise to recognize these higher costs. This could increase the value of our assets, especially in the case of hydroelectric power plants, which have lower production costs, and thus have greater profitability in scenarios of increasing prices to end users. We expect this situation will also impact long term spot prices positively. Long term contracts awarded to our combined entities in different bids have already incorporated these expected price levels. Currently, 15.3% of our expected annual generation is sold under contracts with terms of at least ten years and an additional 77.8% under contracts with terms of at least five years.

88

However, spot prices are subject to great volatility, affecting our forecasted income. In order to address this risk in the generation business, we have implemented commercial policies to control relevant variables and provide stability to the profit margins. Our commercial policy establishes a global framework to conduct energy trading operations, setting responsibilities, guidelines and acceptable risk limits aligned with our objectives. Therefore, we define contractual volumes that minimize the risk of supply in adverse hydrological conditions and include risk mitigation clauses, where necessary, with some unregulated customers.

In order to mitigate the risk of increasing fuel costs, we have entered into supply contracts to cover part of the fuel needed to operate the thermal generation units, which operate with coal, natural gas, diesel, and fuel oil. Through an equity interest in GNL Quintero and GNL Chile, and a Long Term Gas Supply Agreement with GNL Chile, we are the only electricity company in Chile with direct access to the LNG terminal at Quintero Bay (the only facility of its kind in the SIC market). This enhances our position to manage fuel supply risks, especially when facing increasing fuel costs scenarios. This is becoming more important as there is an increasing trend to penalize fuel intensive technologies, such as coal and diesel, which have greater environmental impacts.

In July 2013, Endesa Chile successfully renegotiated a LNG sale and purchase agreement with British Gas. This renegotiation modified some conditions of the original contract, allowing Endesa Chile to secure its long-term LNG supply at competitive prices, with significant flexibility and at capacities sufficient for its current and future needs.

Endesa Chile has also contracted capacity in the LNG truck loading facility (TLF) in the Quintero LNG Terminal, allowing it to sell natural gas to industrial customers. In August 2014, the first load of LNG was successfully delivered to MAERSK’s satellite regasification facility. During 2014, a 20-year sale and purchase agreement was signed with GasValpo (a gas distribution company) to distribute natural gas using the TLF for new customers in various cities in Chile. The first stage started its operations during August 2015, supplying the city of Talca (270 km south of Santiago). Other plants are currently in advanced construction and will begin operation before the end of 2015.

In January 2015, Endesa Chile entered into an agreement with Intergas (gas distribution company) to supply LNG by trucks to the city of Temuco (700 km south of Santiago). This supply arrangement will start during first quarter of 2016.

Endesa Chile also exercised a priority option to purchase additional regasification capacity as part of an expansion at the Quintero LNG Terminal. This allows us to increase our regasification capacity from 3.2 million cubic meters per day to 5.4 million cubic meters per day, as of the first quarter of 2015. This expansion will allow our San Isidro and Quintero power plants to generate additional thermal electricity and also allow Endesa Chile to secure the LNG supply necessary for potential new power plants.

With respect to our distribution business, our operating income for the nine months ended September 30, 2015 increased by 15.5% as compared to the same period of 2014. We believe that electricity demand will grow approximately 3.7% annually, on average, over the next five years.

In connection with the distribution segment tariffs, and taking into account the future periodic review process in Chile, we expect that the regulator will continue to recognize investments, encourage efficiency, and establish prices that will allow for an appropriate return on our investment. We also anticipate that our distribution company will maintain its profitability during the period between periodic tariff setting processes, according to price cap tariff model, due to growth and economies of scale. After tariffs have been set, the companies have the opportunity to increase their efficiency, and obtain extra profits associated with such efficiencies, during the period subsequent to each new tariff setting.

Although the price at which a distribution company purchases electricity has an impact on the price at which it is sold to end users, it does not have an impact on our profitability since the cost of electricity purchased is passed to end users through tariffs. Regulation dictates that purchase contracts must be made through long-term contracts and are the result of a regulated tender.

89

There can be no assurance that past performance will be indicative of future performance with respect to our businesses. Any significant change with respect to hydrological conditions, fuel or electricity prices, among other factors, could affect our operating income in the generation business. More broadly, any significant change with respect to economic or population growth, as well as changes in the regulatory regimes in Chile, among other factors, could affect our operating income. Variability in our earnings and cash flows can also arise from non-operating factors as well, such as foreign currency exchange rates. For further information regarding our 2015 results compared with those recorded in previous periods, please see “— A. Operating Results — Results of Operations for the nine months ended September 30, 2015 and 2014” and “— A. Operating Results — Results of Operations for the Years Ended December 31, 2014 and 2013.” Investors should not look at our past performance as indicative of future performance.

We expect that we will continue generating substantial operating cash, which can be used to finance a significant part of our capital expenditure plan. If needed, our shareholders can also decrease the dividend payout ratio, subject to certain minimum legal restrictions, in order to finance our investment plan and future growth.

In order to be more responsive to the concerns of the residents living in the surrounding areas of prospective new sites, we have shifted our focus to building smaller, less invasive power plants. These plants are constructed faster, allow greater flexibility to activate or deactivate according to system needs, and are generally more acceptable to residents. The local population will be involved in the planning stages of any future projects.

E. Off-balance Sheet Arrangements.

We are not a party to any off-balance sheet arrangements.

F. Tabular Disclosure of Contractual Obligations.

The table below sets forth the Company’s cash payment obligations as of December 31, 2014:

	Payments due by Period
Ch$ billion	Total		2015		2016-2017		2018-2019		After 2019
Bank debt		1		1		—		—		—
Local bonds(1)		333		5		10		36		282
Yankee bonds(1)		556		121		—		—		435
Other debt(2)		—		—		—		—		—
Interest expense(3)		513		82		145		120		167
Pension and post-retirement obligations(4)		54		7		8		7		32
Purchase obligations(5)		13,787		880		1,557		1,768		9,582
Financial leases		24		2		10		12		—
Total contractual obligations		15,268		1,098		1,730		1,943		10,498

(1) Net value, hedging instruments included substantially modify the principal amount of debt.

(2) Other debt includes governmental loan facilities, supplier credits and short-term commercial paper among others.

(3) Interest expenses are the interest payments for all outstanding financial obligations, calculated as principal multiplied by the interest rate, presented according to when the interest payment comes due.

(4) We have funded and unfunded pension and post-retirement benefit plans. Our funded plans have contractual annual commitments for contributions, which do not change based on funding status. Cash flow estimates in the table are based on such annual contractual commitments including certain estimable variable factors such as interest. Cash flow estimates in the table relating to our unfunded plans are based on future discounted payments necessary to meet all of our pension and post-retirement obligations.

(5) Includes generation and distribution business purchase obligations which are comprised mainly of energy purchases, operating and maintenance contracts, and other services. Of the total contractual obligations of Ch$ 13,787 billion, 65% corresponds to energy purchased for distribution, 23% corresponds primarily to fuel supply, maintenance of medium and low voltage lines, supplies of cable and utility poles, and energy purchased for generation. The remaining 12% corresponds to miscellaneous services, such as LNG regasification, fuel transport and coal handling.

90

G. Safe Harbor.

The information contained in the Items 5.E and 5.F contains statements that may constitute forward-looking statements. See “Forward-Looking Statements” in the “Introduction” of this information statement, for safe harbor provisions.

Item 6. Directors, Senior Management and Employees

A. Directors and Senior Management.

Our Board of Directors will initially consist of seven members who will be elected for an interim term at the Extraordinary Shareholders’ Meeting (“ESM”) of the shareholders of Enersis to be held on December 18, 2015 to hold office until the first Ordinary Shareholders’ Meeting (“OSM”) of the shareholders of Enersis Chile to be held in April 2016 (the “2016 OSM”). At the 2016 OSM, the entire Board of Directors consisting of seven members will be elected to a three-year term. Following the end of their term, they may be re-elected or replaced. If a vacancy occurs in the interim, the Board of Directors will elect a temporary director to fill the vacancy until the next OSM, at which time the entire Board of Directors will be elected to new three-year term. Our Executive Officers will be appointed and hold office at the discretion of the Board of Directors.

B. Compensation.

At the ESM to be held on December 18, 2015, the shareholders of Enersis will approve the compensation policy for our Board of Directors. Directors are expected to be paid an annual variable fee equivalent to 0.1% of the net earnings of Enersis Chile for the current year based on the statutory combined financial statements filed with the SVS. Directors are also expected to be paid a monthly fee, in advance, depending on their attendance at Board meetings and their participation as director of any combined entities of Enersis Chile. Director compensation is expected to be similar to the current Enersis’ compensation policy, which consists of a monthly fixed compensation of UF 180 per month and an additional fee of UF 66 per meeting, depending on attendance to Board meetings. Enersis also pays an annual fee to its directors. The monthly fixed fees are considered as advances on the annual variable fee and creditable against that amount. It is expected that once our net earnings are approved at the OSM of the following year, the difference between the accrued annual variable fee and the total fees paid in advance will be paid to directors, but only if the resulting amount is positive. The Chairman of the Board will typically be entitled to double the compensation compared to other directors under this policy, while the Vice Chairman would receive fixed compensation higher than the directors but lower than the Chairman. It is expected that the members of the Directors’ Committee of Enersis Chile will be paid a variable annual fee, equivalent to a percentage of the net earnings of Enersis Chile for the current year. This compensation scheme has been estimated based on the latest Enersis information prior to the Spin-Off and may be different when applied to Enersis Chile.

Enersis Chile will not disclose, to its shareholders or otherwise, any information about an individual Executive Officer’s compensation. Executive Officers will be eligible for variable compensation under a bonus plan. The annual bonus plan will be paid to Executive Officers for achieving company-wide objectives and for their individual contribution to Enersis Chile’s results and objectives. The annual bonus plan will provide for a range of bonus amounts according to seniority level. The bonuses that will be paid to Executive Officers will consist of a certain multiple of gross monthly salaries.

Enersis Chile expects to enter into severance indemnity agreements with all of its Executive Officers, pursuant to which it will pay severance indemnity in the event of voluntary resignation, termination by mutual agreement among the parties, or death. The severance indemnity will not apply if the termination is due to willful misconduct, prohibited negotiations, unjustified absences, abandonment of duties, among other causes, as defined in Article 160 of the Chilean Labor Code. All of Enersis Chile’s employees will be entitled to legal severance pay if terminated due to the needs of Enersis Chile, as defined in Article 161 of the Chilean Labor Code.

91

C. Board Practices.

Corporate Governance

Enersis Chile will be managed by a Board of Directors in accordance with its by-laws. The Board will initially consist of seven directors who will be elected by shareholders of Enersis at the ESM to be held on December 18, 2015 to hold office until the first OSM of the shareholders of Enersis Chile to be held in April 2016. At the 2016 OSM, the entire Board of Directors consisting of seven members will be elected to a three-year term. Following the end of their term, they may be re-elected or replaced. At the end of the three-year term, each director will be either re-elected or replaced. Directors can be re-elected indefinitely. Staggered terms are not permitted under Chilean law. If a vacancy occurs on the board during the three-year term, the Board of Directors may appoint a temporary director to fill the vacancy. Any vacancy triggers an election for every seat on the Board of Directors at the next OSM. Members of the Board of Directors will not have service contracts with Enersis Chile or with any of its combined entities that will provide them benefits upon termination of their service.

Chilean corporate law provides that a company’s Board of Directors is responsible for the management and representation of a company in all matters concerning its corporate purpose, subject to the provisions of the company’s bylaws and the stockholders’ resolutions.

Corporate governance policies of Enersis Chile are expected to be similar to the current Enersis policies. Additionally, the Charter Governing Executives and the Employee Code of Conduct will be approved by the Board of Directors. The Employee Code of Conduct will explain Enersis Chile’s principles and ethical values, establish the rules governing Enersis Chile’s contact with customers and suppliers, and establish the principles that should be followed by employees, including ethical conduct, professionalism and confidentiality. Limitations on the activities that Enersis Chile’s executives and other employees may undertake outside the scope of their employment with us may also be imposed.

In order to ensure compliance with Securities Market Law No. 18,045 and SVS regulations, it is expected that the Board of Directors will approve the “Manual for the Management of Information of Interest to the Market” (the “Manual”). This document will address applicable standards regarding the information in connection with transactions of Enersis Chile’s securities and those of its affiliates, entered into by directors, management, principal executives, employees and other related parties, the existence of blackout periods for such transactions undertaken by directors, principal executives and other related parties, the existence of mechanisms for the continuous disclosure of information that is of interest to the market and mechanisms that provide protection for confidential information. The Manual will be posted on Enersis Chile’s website at www. enersischile.cl. The provisions of this Manual will apply to the members of the Board, as well as executives and employees who have access to confidential information, and especially those who work in areas related to the securities markets.

In order to supplement the aforementioned corporate governance regulations, it is expected that the Board of Directors will approve a Code of Ethics and a Zero Tolerance Anti-Corruption Plan (“ZTAC Plan”), which will be similar to the ZTAC Plan of Enersis. The Code of Ethics will be based on general principles such as impartiality, honesty, integrity and other ethical standards of similar importance, all of which are expected from employees. The ZTAC Plan will reinforce the principles included in the Code of Ethics, but with special emphasis on avoiding corruption in the form of bribes, preferential treatment, and other similar matters.

In order to comply with Law 20,393 enacted on December 2, 2009, it is expected that the Board of Directors will approve the Penal Risk Prevention Model, which imposes criminal responsibility on legal entities for the crimes of asset laundering, financing of terrorism and bribing of public officials. The law encourages companies to adopt this model, whose implementation involves compliance with managerial and supervision duties. The adoption of the Penal Risk Prevention Model will mitigate, and in some cases relieve, the effects of criminal responsibility even when a crime is committed. One of the elements of this model is the appointment of the Penal Risk Prevention Officer, who will be appointed by the Board.

92

It is expected that the Board of Directors will approve the “Guidelines 231: Guidelines applicable to non-Italian subsidiaries in accordance with Legislative Decree 231 of June 8, 2001.” Given that Enersis Chile’s ultimate parent company, Enel, has to comply with Italian Legislative Decree 231, which establishes management responsibility for Italian companies as a consequence of certain crimes committed in Italy or abroad, in the name of or for the benefit of such entities, including those crimes described in Chilean Law 20,393, these guidelines set a group of measures, with standards of behavior expected from all employees, advisers, auditors, officials, directors as well as consultants, contractors, commercial partners, agents and suppliers. Legislative Decree 231 includes various activities of a preventive nature that are coherent with and integral to the requirements and compliance with Chilean Law No. 20,393, which deals with the criminal responsibility of legal entities. These guidelines are supplementary to the standards included in the Code of Ethics and the ZTAC Plan.

On November 29, 2012, the SVS issued General Regulation No. 341 which established regulations for the disclosure of information with respect to the standards of corporate governance compliance adopted by publicly held limited liability corporations and sets the procedures, mechanisms and policies that are indicated in the Appendix to the regulation. The objective of this regulation is to provide credible information to investors with respect to good corporate governance policies and practices adopted by publicly held limited liability corporations, which include us, and permit entities like stock exchanges to produce their own analyses to help the various market participants to understand and evaluate the commitment of companies. The Appendix is divided into the following five sections with respect to which companies must report the corporate practices that have been adopted: (i) the functioning of the board, (ii) relations between the company, shareholders and the general public, (iii) the replacement and compensation of senior executives, (iv) the definition, implementation and supervision of the company’s internal control and risk management policies and procedures, and (v) other practices adopted by the company that do not refer to the above matters. Publicly held limited liability corporations should send the information with respect to corporate governance practices to the SVS, no later than March 31 of each year, using the contents of the Appendix to this regulation as criteria. If none of them is adopted, the company must explain its reasons to the SVS. The information should refer to December 31 of the calendar year prior to its dispatch. At the same time, such information should also be at the public’s disposal on the company’s website and must be sent to the stock exchanges.

Compliance with the New York Stock Exchange Listing Standards on Corporate Governance

The following is a summary of the significant differences between Enersis Chile’s expected corporate governance practices and those applicable to U.S. domestic issuers under the corporate governance rules of the NYSE:

Independence and Functions of the Directors’ Committee (Audit Committee)

Chilean law requires that at least two thirds of the Directors’ Committee be independent directors. According to Chilean law, a member would not be considered independent if, at any time, within the last 18 months he: (i) maintained any relationship of a relevant nature and amount with the company, with other companies of the same group, with its controlling shareholder or with the principal officers of any of them or has been a director, manager, administrator or officer of any of them; (ii) maintained a family relationship with any of the members described in (i) above; (iii) has been a director, manager, administrator or principal officer of a non-profit organization that has received contributions from (i) above; (iv) has been a partner or a shareholder that has controlled, directly or indirectly, 10% or more of the capital stock or has been a director, manager, administrator or principal officer of an entity that has provided consulting or legal services for a relevant consideration or external audit services to the persons listed in (i) above; and (v) has been a partner or a shareholder that has controlled, directly or indirectly, 10% or more of the capital stock or has been a director, manager, administrator or principal officer of the principal competitors, suppliers or customers. In case there are not sufficient independent directors on the Board to serve on the Directors’ Committee, Chilean law determines that the independent director nominates the rest of the members of the Directors’ Committee among the remaining Board members that do not meet the Chilean law independence requirements. Chilean law also

93

requires that all publicly held limited liability stock corporations that have a market capitalization of at least UF 1,500,000 (Ch$ 38 billion as of September 30, 2015) and at least 12.5% of its voting shares are held by shareholders that individually control or own less than 10% of such shares, must have at least one independent director and a Directors’ Committee.

Under the NYSE corporate governance rules, all members of the Audit Committee must be independent, subject to a phase-in period for compliance for spin-off companies. The Audit Committee of a U.S. company must perform the functions detailed in, and otherwise comply with the requirements of NYSE Listed Company Manual Rules 303A.06 and 303A.07. As of July 31, 2005, non-U.S. companies have been required to comply with Rule 303A.06, but not with Rule 303A.07. Once the Spin-Off is effective, it is expected that Enersis Chile will comply with the independence and the functional requirement of Rule 303A.06.

Pursuant to Enersis Chile’s by-laws that are expected to be approved by the shareholders of Enersis at the ESM to be held on December 18, 2015, all members of the Directors’ Committee must satisfy the requirements of independence, as stipulated by the NYSE. The members of the Director’s Committee will be composed of three members of the Board and will comply with Chilean law, as well as with the criteria and requirements of independence prescribed by the Sarbanes-Oxley Act (“SOX”), the SEC and the NYSE. Therefore, the Director’s Committee will comply with the conditions of the Audit Committee as required by the SOX, the SEC and the NYSE corporate governance rules. As a result, the Company will have a single Committee, the Directors’ Committee, which will include among its functions the duties perform by the Audit Committee.

Enersis Chile’s Directors’ Committee is expected to be composed of three independent directors, all of whom will meet the independence criteria of Chilean law, SOX, the SEC and the NYSE.

The Enersis Chile Directors’ Committee will perform the following functions:

• review of financial statements and the reports of the external auditors prior to their submission for shareholders’ approval;

• formulate proposals to the Board of Directors, which will make its own proposals to shareholders’ meetings, for the selection of external auditors and private rating agencies;

• review of information related to transactions of Enersis Chile with related parties and reports the opinion of the Directors’ Committee to the Board of Directors;

• the examination of the compensation framework and plans for managers, executive officers and employees;

• the preparation of an Annual Management Report, including its main recommendations to shareholders;

• provide information to the Board of Directors about the convenience of recruiting external auditors to provide non-auditing services, when such services are not prohibited by law, depending on whether such services might affect the external auditors’ independence;

• oversee the work of external auditors;

• review and approval of the annual auditing plan by the external auditors;

• evaluate the qualifications, independence and quality of the auditing services;

• elaborate on policies regarding employment of former members of the external auditing firm;

• review and discuss problems or disagreements between management and external auditors regarding the auditing process;

• establish procedures for receiving and dealing with complaints regarding accounting, internal control and auditing matters;

• any other function mandated to the committee by the bylaws, the Board of Directors or the shareholders.

94

Corporate Governance Guidelines

The NYSE’s corporate governance rules require U.S.-listed companies to adopt and disclose corporate governance guidelines. Although Chilean law does not provide for this practice (except for the Manual), Enersis Chile expects to adopt the codes of conduct and its by-laws will include provisions that govern the creation, composition, attributions, functions and compensation of both Director’s and Audit Committees described above.

D. Employees.

The following table provides the total number of personnel (both permanent and temporary employees) and the number of personnel (both permanent and temporary employees) of each of our combined entities as of the dates indicated.

	As of September 30,				As of December 31,
Company	2015		2014		2014		2013
Endesa Chile		925		1,128		1,137		1,137
Pehuenche		2		3		3		3
Celta		—		1		1		1
Ingendesa		—		—		—		—
Túnel El Melón(1)		—		15		15		16
Enersis		391		446		445		357
Chilectra(2)		682		695		690		745
Servicios Informáticos e Inmobiliarios Ltda.(3)		110		107		128		153
GasAtacama(4)		71		156		105		—
Total personnel		2,181		2,551		2,524		2,412

(1) This company was sold by Endesa Chile in January 2015.

(2) Includes Luz Andes S.A. and Empresa Eléctrica de Colina S.A.

(3) In December 2014, IMV was merged into ICT. The resulting company was renamed Servicios Informáticos e Inmobiliarios Ltda. 2013 includes ICT, IMV, Los Maitenes and Aguas Santiago Poniente. The 2014 data only includes ICT and IMV, since the other two companies were sold in December 2014.

(4) As a result of Endesa Chile’s purchase of an additional 50% interest in GasAtacama Holding, we began accounting for GasAtacama Holding and its subsidiaries on a combined basis since May 2014.

95

The following table provides the total number of temporary employees and the number of temporary employees of each of our combined entities as of the dates indicated and the average during the most recent financial year:

	As of September 30,				Average		As of December 31,
Company	2015		2014		2014		2014		2013
Endesa Chile		91		118		108.2		119		96
Pehuenche		—		—		—		—		—
Celta		—		—		—		—		—
Ingendesa		—		—		—		—		—
Túnel El Melón(1)		—		—		—		—		—
Enersis		—		4.0		4.0		4		4
Chilectra(2)		—		—		0.1		—		1
Servicios Informáticos e Inmobiliarios Ltda.(3)		—		—		—		—		—
GasAtacama(4)		—		—		0.9		1		—
Total temporary personnel		91		122		113.2		124		101

(1) This company was sold by Endesa Chile in January 2015.

(2) Includes Luz Andes S.A. and Empresa Eléctrica de Colina S.A.

(3) In December 2014, IMV was merged into ICT. The resulting company was renamed Servicios Informáticos e Inmobiliarios Ltda. 2013 includes ICT, IMV, Los Maitenes and Aguas Santiago Poniente. The 2014 data only includes ICT and IMV, since the other two companies were sold in December 2014.

(4) As a result of Endesa Chile’s purchase of an additional 50% interest in GasAtacama Holding, we began accounting for GasAtacama Holding and its subsidiaries on a combined basis since May 2014.

All Chilean employees who are dismissed for reasons other than misconduct are entitled by law to a severance payment. According to Chilean law, permanent employees are entitled to a basic payment of one-month’s salary for each year (or a six-month portion thereof) worked, subject to a limit of a total payment of no more than 11 months’ pay for employees hired after August 14, 1981. Severance payments to employees hired prior to that date consist of one-month’s salary for each full year worked, not subject to any limitation on the total amount payable. Under our collective bargaining agreements, we are obligated to make severance payments to all covered employees in cases of voluntary resignation or death in specified amounts that increase according to seniority and may exceed the amounts required under Chilean law.

Enersis currently has two collective bargaining agreements in Chile, which are expected to be transferred to Enersis Chile once the separation is effective. The first one was signed in July 2015 and it will be in force until July 2019. The second one was signed in December 2011 and will expire in December 2015. Chilectra has five collective bargaining agreements, all of them signed in 2012, which expire in December 2016. Empresa Eléctrica de Colina has one collective bargaining agreement signed in 2015, which expires in October 2019. SIEI has one agreement which expires in December 2015. Endesa Chile has four collective bargaining agreements in Chile, which will expire between 2015 and 2017.

E. Share Ownership.

At the 2016 OSM, the Board of Directors will be elected. None of the directors or officers of Enersis Chile is expected to own more than 0.1% of the shares of Enersis Chile or any stock options after the Spin-Off.

96

Item 7. Major Shareholders and Related Party Transactions

A. Major Shareholders.

Based on the distribution ratio in the Spin-Off of one share of Enersis Chile common stock for every one share of Enersis common stock, immediately after the Spin-Off, Enersis Chile’s shareholders and their holdings of Enersis Chile common stock will be identical to the shareholders of Enersis and their holdings of Enersis common stock immediately prior to the Spin-Off. Following the Spin-Off, Enersis Chile will have only one class of capital stock and Enel, the ultimate controlling stockholder of Enersis, will also be the ultimate controlling shareholder of Enersis Chile after the Spin-Off and will have no different voting rights than the other shareholders of Enersis Chile.

The following discussion has been prepared based on information available to us concerning ownership of Enersis common stock and ADSs as of September 30, 2015 and describes the expected ownership of Enersis Chile common stock and ADSs immediately following the Spin-Off.

Immediately following the Spin-Off, Enersis Chile is expected to have 49,092,772,762 shares of common stock outstanding, held by 6,891 stockholders of record and five record holders of Enersis Chile ADSs. It is not practicable for us to determine the number of Enersis Chile ADSs or Enersis Chile common stock that will be beneficially owned in the United States, as the depositary for Enersis’ ADSs only has knowledge of the record holders, including the Depositary Trust Company and its nominees. As a result, we are not able to ascertain the domicile of the expected final beneficial holders represented by Enersis Chile ADS record holders. Likewise, we cannot readily determine the domicile of any of the expected foreign stockholders who will hold Enersis Chile common stock, either directly or indirectly.

Immediately following the Spin-Off, we expect that: Enel will beneficially own 60.6% of Enersis Chile; AFPs in the aggregate will own 12.1% of Enersis Chile; Chilean stockbrokers, mutual funds, insurance companies, foreign equity funds, and other Chilean institutional investors collectively will own 14.5% of Enersis Chile; ADS holders will beneficially own 10.8% of Enersis Chile; and the remaining 2.0% of Enersis Chile will be held by over 6000 minority shareholders, based on available information as of September 30, 2015.

The following table sets forth certain information concerning the expected ownership of Enersis Chile common stock immediately following the Spin-Off, with respect to each stockholder known by us that is expected to own more than 5% of the outstanding shares of Enersis Chile common stock:

	Number of Shares Owned		Percentage of Shares Outstanding
Enel Latinoamérica(1)		19,794,583,473		40.3	%
Enel Iberoamérica		9,967,630,058		20.3	%

(1) Enel Latinoamérica is wholly-owned by Enel Iberoamérica, which in turn is wholly-owned by Enel.

Enel, an Italian generation and distribution company which is publicly traded on the Milan Stock Exchange, is primarily engaged in the energy sector, with a presence in 30 countries worldwide, and approximately 89 GW of net installed capacity. It provides service to more than 61 million customers through its electricity and gas businesses.

B. Related Party Transactions.

Article 146 of Law No. 18,046 (the “Chilean Companies Act”) defines related-party transactions as all transactions involving a company and any entity belonging to the corporate group, its parent companies, controlling companies, subsidiaries or related companies, board members, managers, administrators, senior officers or company liquidators, including their spouses, some of their relatives and all entities controlled by them, in addition to individuals who may appoint at least one member of the company’s board of directors or who control 10% or more of voting capital, or companies in which a board member, manager, administrator,

97

senior officer or company liquidator has been serving in the same position within the last 18 months. The law establishes that in the event that these persons fulfill the requirements established by Article 146, such persons must immediately inform the Board of Directors of their related-party nature or such other group as the Board may appoint for that purpose. As required by law, “related-party transactions” must comply with corporate interests, as well as prices, terms and conditions prevailing in the market at the time of their approval. They must also meet all legal requirements, including acknowledgement and approval of the transaction by the board (excluding the affected directors), by the ESM (in some cases, with requisite majority approval) and by any applicable regulatory procedures.

The aforementioned law, which also applies to Enersis Chile’s affiliates, also provides for some exceptions, stating that in certain cases, Board approval would suffice for “related-party transactions, “ pursuant to certain related-party transaction thresholds and when such transactions are conducted in compliance with the related-party policies defined by the company’s board. Accordingly, during 2016, Enersis Chile’s Board of Directors will adopt a related-party transaction policy (política de habitualidad) which, when approved, will be available on Enersis Chile’s website.

If a transaction is not in compliance with Article 146, this would not affect the transaction’s validity, but we or our shareholders may demand compensation from the individual associated with the infringement as provided under law, and reparation for damages.

It is Enersis’ policy that all cash inflows and outflows of its Chilean combined entities be managed through its centralized cash management policy. It is a common practice in Chile to transfer surplus funds from one company to another affiliate that has a cash deficit. These transfers are carried out through either short-term loans or through structured inter-company loans. Under Chilean laws and regulations, such transactions must be carried out on an arm’s-length basis. Enersis’ centralized cash management is more efficient for both financial and tax reasons and Enersis Chile is expected to continue such policy. All of these transactions will be subject to the supervision of Enersis Chile’s Directors’ Committee. As of September 30, 2015, these transactions were priced at TIP (a Chilean variable interest rate) plus 0.05% per month.

Endesa Chile, has received three structured loans from Enersis, primarily to satisfy working capital needs/finance projects. As of September 30, 2015, the outstanding balance for such loans was US$ 377 million comprised of a US$ 150 million loan at a fixed annual interest rate of 0.77%, a second loan of US$ 150 million at a fixed annual interest rate of 0.72% and a third annual loan of US$ 77 million with a fixed annual interest rate of 0.66%.

Endesa Chile, has also received a short-term loan from Enersis, primarily to satisfy working capital needs/finance projects. As of September 30, 2015, the outstanding balance for such loan was US$ 35 million.

Enersis granted a short-term loan to Endesa Chile, primarily to satisfy working capital needs/finance projects. As of September 30, 2015, the outstanding balance for such loan was US$ 25 million.

Chilectra, has received a short-term loan from Enersis, primarily to satisfy working capital needs/finance projects. As of September 30, 2015, the outstanding net balance for such loan was US$ 7 million.

Enersis granted a short-term loan to Chilectra, primarily to satisfy working capital needs/finance projects. As of September 30, 2015, the outstanding net balance for such loan was US$ 5 million

During the three-year period ended December 31, 2014, Endesa Chile granted only one loan to its subsidiary as of that date, Costanera, at a spread of 6.0% over LIBOR. This loan matured in November 2013, because it was contributed to Costanera in connection with its capital increase.

As of the date of this information statement, the abovementioned transactions have not experienced material changes. For more information regarding transactions with related parties, refer to Note 10 of the Notes to our interim combined financial statements.

98

C. Interests of Experts and Counsel.

Not applicable.

Item 8. Financial Information

A. Combined Statements and Other Financial Information.

See “Item 18. Financial Statements.”

Legal Proceedings

We and our combined entities are parties to legal proceedings arising in the ordinary course of business. We believe it is unlikely that any loss associated with pending lawsuits will significantly affect the normal development of our business.

For detailed information as of September 30, 2015 on the status of the material pending lawsuits that have been filed against Enersis and its subsidiaries, please refer to Note 36.3 of the Notes to our interim combined financial statements. Please note that once the Spin-Off is effective, we will be the defendant instead of Enersis for all legal proceeding originating from our Chilean Business.

In relation to the legal proceedings reported in the Notes to our interim combined financial statements, we use the criteria of disclosing lawsuits above a minimum threshold of US$ 9 million of potential impact to us, and, in some cases, qualitative criteria according to the materiality of the impact in the conduct of our business. The lawsuit status includes a general description, the process status and the estimate of the amount involved in each lawsuit.

Dividend Policy

It is expected that the Board of Directors will establish a definitive dividend payable each year. The dividend policy has not been defined yet.

It is expected that the interim Board of Directors of Enersis Chile will be elected at the ESM of the shareholders of Enersis to be held on December 18, 2015 and will establish a definitive dividend payable each year, accrued in the prior year, which cannot be less than the legal minimum of 30% of annual net income before negative goodwill amortization. Additionally, it is expected that shareholders of Enersis will agree to consider a percentage of Enersis’ 2015 annual net income as Enersis Chile’s 2015 annual net income at the ESM. The exact proportion has to be determined and this definition will be applied only for the first dividend distribution.

It is expected that our dividend policy will be similar to Enersis’ current dividend policy and therefore, the interim dividend will correspond to 15% of liquid net income as of a specific, yet to be determined period, of the combined statements of financial position. Additionally, it is expected that our Board of Directors will propose a definitive dividend payout equal to 50% of the annual net income for fiscal year 2016. Dividend payments will be subject to net profits obtained in each period, as well as to expectations of future profit levels and other conditions that may exist at the time of such dividend declaration. The fulfillment of the aforementioned dividend policy will depend on the net income. The proposed dividend policy will be subject to our Board of Director’s right to change the amount and timing of the dividends under the circumstances at the time of the payment. The payment of dividends for fiscal year 2015 will be based on the net income filed with the SVS. For further details, see “Item 3. Key Information — A. Selected Financial Data.”

The payments of dividends are subject to legal restrictions, such as legal reserve requirements, capital and retained earnings criteria, and other contractual restrictions such as the non-default on credit agreements. However, these legal restrictions will not affect our ability or any of our combined entities to pay dividends. (See “Item 5. Operating and Financial Review and Prospects — B. Liquidity and Capital Resources” for further detail on our debt instruments).

99

Stockholders set dividend policies at each subsidiary and affiliate. Dividends will be paid to shareholders of record as of midnight of the fifth business day prior to the payment date. Holders of ADS on the applicable record dates will be entitled to participate in dividends.

Dividends

Dividends have not been paid to date.

For a discussion of Chilean withholding taxes and access to the formal currency market in Chile in connection with the payment of dividends and sales of ADSs and the underlying common stock, see “Item 10. Additional Information — E. Taxation” and “Item 10. Additional Information — D. Exchange Controls.”

100

B. Significant Changes.

UNAUDITED PRO FORMA COMBINED FINANCIAL INFORMATION

The following unaudited pro forma combined statement of financial position as of September 30, 2015 and the unaudited pro forma combined statements of income for the year ended December 31, 2014 and the nine months ended September 30, 2015 give effect to (1) the Endesa/Chilectra Spin-Offs and (2) Spin-Off. The pro forma information is based on the combined financial statements of the Chilean Businesses of Enersis after giving effect to the transactions and applying the estimates, assumptions and adjustments described in the accompanying notes to the unaudited pro forma combined financial information.

For pro forma purposes, the unaudited pro forma combined statement of financial position as of September 30, 2015 is presented as if the spin-off transactions had occurred on September 30, 2015. The unaudited pro forma combined statements of income for the year ended December 31, 2014 and the nine months ended September 30, 2015, in each case, are presented as if the spin-off transactions had occurred on January 1, 2014.

The unaudited pro forma combined financial information has been prepared by Enersis’ management for illustrative purposes and is not intended to represent the combined financial position or combined results of operations in future periods or what the results actually would have been had Enersis completed the proposed spin-off transactions during the specified periods. The unaudited pro forma combined financial information and accompanying notes should be read in conjunction with the following information presented in this information statement: (1) the historical combined financial statements of the Chilean Businesses of Enersis for the year ended December 31, 2014 and notes thereto, (2) the historical combined financial statements of the Chilean Businesses for the nine months ended September 30, 2015 and notes thereto and (3) Part I, Item 5.A. “Operating Results” of this information statement.

101

Unaudited Pro Forma Combined Statement of Financial Position as of September 30, 2015

	Combined Historical		Combined Pro forma Adjustment		Combined Pro forma
	(in thousands of Ch$)
ASSETS
CURRENT ASSETS
Cash and cash equivalents		85,160,333		—		85,160,333
Other current financial assets		1,580,176		—		1,580,176
Other current non-financial assets		17,526,512		—		17,526,512
Trade and other current receivables		580,410,561		—		580,410,561
Current accounts receivable from related companies		21,954,154		—		21,954,154
Inventories		35,549,475		—		35,549,475
Current tax assets		22,652,733		—		22,652,733
Total current assets other than assets or groups of assets for disposal classified as held for sale or as held for distribution to owners		764,833,944		—		764,833,944
Non-current assets or groups of assets for disposal classified as held for sale		—		—		—
Non-current assets or groups of assets for disposal classified as held for sale or as held for distribution to owners		—		—		—
TOTAL CURRENT ASSETS		764,833,944		—		764,833,944
NON-CURRENT ASSETS
Other non-current financial assets		22,823,374		—		22,823,374
Other non-current non-financial assets		4,517,717		—		4,517,717
Trade and other non-current receivables		6,929,938		—		6,929,938
Investments accounted for using the equity method		47,687,926		—		47,687,926
Intangible assets other than goodwill		37,725,489		—		37,725,489
Goodwill		887,257,655		—		887,257,655
Property, plant and equipment		3,349,115,618		—		3,349,115,618
Investment property		8,156,603		—		8,156,603
Deferred tax assets		20,249,553		—		20,249,553
TOTAL NON-CURRENT ASSETS		4,384,463,873		—		4,384,463,873
TOTAL ASSETS		5,149,297,817		—		5,149,297,817

See Notes to the unaudited pro forma combined financial statements

102

	Combined Historical			Combined Pro forma Adjustment			Combined Pro forma
	(in thousands of Ch$)
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Other current financial liabilities		31,465,056			—			31,465,056
Trade and other current payables		360,768,802			194,244,000	(A)		555,012,802
Current accounts payable to related companies		335,484,506			—			335,484,506
Other current provisions		19,554,817			—			19,554,817
Current tax liabilities		3,926,861			—			3,926,861
Other current non-financial liabilities		28,036,115			—			28,036,115
Total current liabilities other than those associated with groups of assets for disposal classified as held for sale		779,236,157			194,244,000			973,480,157
Liabilities associated with groups of assets for disposal classified as held for sale		—			—			—
TOTAL CURRENT LIABILITIES		779,236,157			194,244,000			973,480,157
NON-CURRENT LIABILITIES
Other non-current financial liabilities		910,216,082			—			910,216,082
Trade and other non-current payables		—			—			—
Other long-term provisions		61,064,768			—			61,064,768
Deferred tax liabilities		227,628,896			(46,618,560	)(B)		181,010,336
Non-current provisions for employee benefits		50,819,635			—			50,819,635
Other non-current non-financial liabilities		3,262,507			—			3,262,507
TOTAL NON-CURRENT LIABILITIES		1,252,991,888			(46,618,560	)		1,206,373,328
TOTAL LIABILITIES		2,032,228,045			147,625,440			2,179,853,485
EQUITY
Allocated Capital		2,229,108,975			—			2,229,108,975
Retained earnings		1,278,364,066			—			1,278,364,066
Other reserves		(979,516,732	)		(94,153,185	)(C)		1,073,669,917	)
Equity attributable to Parent Company		2,527,956,309			(94,153,185	)		2,433,803,124
Non-controlling interests		589,113,463			(53,472,255	)(D)		535,641,208
TOTAL EQUITY		3,117,069,772			(147,625,440	)		2,969,444,332
TOTAL LIABILITIES AND EQUITY		5,149,297,817			—			5,149,297,817

See Notes to the unaudited pro forma combined financial statements

103

Unaudited Pro Forma Combined Statement of Income

for the Nine Months ended September 30, 2015

	Combined Historical			Combined Pro forma Adjustment		Combined Pro forma
	(in thousands of Ch$)
STATEMENTS OF COMPREHENSIVE INCOME Profit (loss)
Revenues		1,753,899,975			—		1,753,899,975
Other operating income		8,298,934			—		8,298,934
Revenues and other operating income		1,762,198,909			—		1,762,198,909
Raw materials and consumables used		(1,151,827,225	)		—		(1,151,827,225	)
Contribution Margin		610,371,684			—		610,371,684
Other work performed by the entity and capitalized		16,076,024			—		16,076,024
Employee benefits expense		(102,295,695	)		—		(102,295,695	)
Depreciation and amortization expense		(112,391,453	)		—		(112,391,453	)
Impairment loss recognized in the period’s profit or loss		(4,917,537	)		—		(4,917,537	)
Other expenses		(82,469,879	)		—		(82,469,879	)
Operating Income		324,373,144			—		324,373,144
Other gains (losses)		6,694,174			—		6,694,174
Financial income		11,075,425			—		11,075,425
Financial costs		(52,290,795	)		—		(52,290,795	)
Share of profit (loss) of associates and joint ventures accounted for using the equity method		7,482,890			—		7,482,890
Foreign currency exchange differences		(45,890,221	)		—		(45,890,221	)
Profit (loss) from indexed assets and liabilities		3,320,149			—		3,320,149
Income before taxes		254,764,766			—		254,764,766
Income tax expense		(57,496,655	)		—		(57,496,655	)
NET INCOME		197,268,111			—		197,268,111
Net income attributable to:
Enersis Chile		149,907,188			—		149,907,188
Non-controlling interests		47,360,923			—		47,360,923
NET INCOME		197,268,111			—		197,268,111

See Notes to the unaudited pro forma combined financial statements

104

Unaudited Pro Forma Combined Statement of Income for the Year ended December 31, 2014

	Combined Historical			Combined Pro forma Adjustment		Combined Pro forma
	(in thousands of Ch$)
STATEMENTS OF COMPREHENSIVE INCOME Profit (loss)
Revenues		1,477,407,687			—		1,477,407,687
Other operating income		21,454,312			—		21,454,312
Revenues and other operating income		1,498,861,999			—		1,498,861,999
Raw materials and consumables used		(1,003,840,694	)		—		(1,003,840,694	)
Contribution Margin		495,021,305			—		495,021,305
Other work performed by the entity and capitalized		15,904,921			—		15,904,921
Employee benefits expense		(96,504,075	)		—		(96,504,075	)
Depreciation and amortization expense		(93,389,860	)		—		(93,389,860	)
Impairment losses recognized in the year’s profit or loss		(1,075,487	)		—		(1,075,487	)
Other expenses by nature		(93,521,920	)		—		(93,521,920	)
Operating Income		226,434,884			—		226,434,884
Other gains (losses)		47,755,054			—		47,755,054
Financial income		9,124,834			—		9,124,834
Financial costs		(58,021,595	)		—		(58,021,595	)
Share of profit (loss) of associates and joint ventures accounted for using the equity method		7,728,915			—		7,728,915
Foreign currency exchange differences		(13,734,131	)		—		(13,734,131	)
Profit (loss) from indexed assets and liabilities		3,088,893			—		3,088,893
Income before taxes		222,376,854			—		222,376,854
Income tax expense		(102,595,091	)		—		(102,595,091	)
NET INCOME		119,781,763			—		119,781,763
Net income attributable to:
Enersis Chile		96,243,582			—		96,243,582
Non-controlling interests		23,538,181			—		23,538,181
NET INCOME		119,781,763			—		119,781,763

See Notes to the unaudited pro forma combined financial statements

105

Notes to the Unaudited Pro Forma Combined Financial Statements

A. Basis of Presentation

Capital Gains Taxes

In connection with the Endesa /Chilectra Spin-Offs, it is expected that Endesa Chile and Chilectra will be subject to capital gains taxes in Peru and Argentina under applicable tax laws (Ley del Impuesto a la Renta in Peru andLey de Impuesto a las Ganancias in Argentina) with respect to the transfer of investments that Endesa Chile and Chilectra have in entities in these countries to Endesa Américas and Chilectra Américas, respectively, in the Endesa/Chilectra Spin-Offs.

These taxes are preliminarily estimated to be approximately Ch$ 194 billion (Ch$ 175 billion to be paid by Endesa Chile and Ch$ 19 billion to be paid by Chilectra Chile) and will be a result of the capital gains generated by the difference between the value of these investments at the time of transfer to Endesa Américas and Chilectra Américas and the cost of acquisition of these investments in accordance with the applicable laws.

The applicable capital gain tax rates are expected to be 30% in Peru and 15% in Argentina. These taxes would be considered deductible expenses for purposes of determining Endesa Chile’s and Chilectra Chile’s income taxable in Chile, and would result in a tax benefit estimated to be approximately Ch$ 46.6 billion (Ch$ 42.1 billion for Endesa Chile and Ch$ 4.5 billion for Chilectra Chile), provided all the corresponding local tax requirements are met and assuming a Chilean income tax rate of 24%, which would be the tax rate applicable for the year 2016, after giving effect to the Endesa/Chilectra Spin-Offs and the Spin-Off. The capital gains taxes will become payable upon the completion of the Spin-Off, in the year in which the Spin-Off is completed.

The Spin-Off has tax consequences that will arise when it is legally completed; therefore, these effects are not accounted for as part of the spin-off accounting itself, but will rather be recorded in Endesa Américas and Chilectra Américas, as soon as these entities are legally established and the transaction has been consummated.

As these tax consequences are expected to be non-recurring and will not have a continuing impact, no adjustments were provided in the combined statements of income and they have been given effect in the combined statement of financial position as of September 30, 2015, as described below.

B. Pro Forma Adjustments

(A) Represents the aggregate estimated capital gains tax payable in Peru and Argentina in the amounts of Ch$ 175 billion to be paid by Endesa Chile and Ch$ 19 billion to be paid by Chilectra Chile with respect to the transfer of investments that Endesa Chile and Chilectra have in entities in these countries to Endesa Américas and Chilectra Américas, respectively, in the Endesa/Chilectra Spin-Offs.

(B) Represents the aggregate estimated tax benefit in the amounts of Ch$ 42.1 billion for Endesa Chile and Ch$ 4.5 billion for Chilectra Chile (assuming a Chilean income tax rate of 24%) arising from the tax deductibility in Chile of a portion of the capital gains tax payable in Peru and Argentina.

(C) Represents the impact of Ch$ 94.2 billion on the equity attributable to the Parent Company in relation to the additional net liability, reflected as an adjustment to “Other reserves.”

(D) Represents the impact of Ch$ 53.5 billion of the additional net liability on the non-controlling interests.

Item 9. The Offer and Listing

A. Offer and Listing Details.

Market Price Information

We expect that the shares of our common stock and our ADS will be traded on the Chilean Stock Exchanges and NYSE, respectively, upon the completion of the Spin-Off.

106

B. Plan of Distribution.

Background and Description of the Spin-Off

Overview

The Spin-Off will establish us as a new Chilean corporation, independent of Enersis Américas. Enersis Chile will be a holding company focused on providing the Chilean Business through its combined entities and jointly controlled entities in Chile. Neither Enersis Américas nor Enersis Chile will own any capital stock of the other. The relationships between the two companies will be limited to:

• Agreements relating to the implementation of the Spin-Off; and

• Intercompany agreements for staff and support services as well as financial arrangements, among others.

Enersis Chile and Enersis Américas may also have certain intercompany arrangements with Endesa Chile, Endesa Américas, Chilectra Chile and Chilectra Américas following the Spin-Off and the Endesa/Chilectra Spin-Offs.

Description of the Spin-Off

The Spin-Off will be implemented using a procedure under Chilean corporate law calleddivisión or “demerger.” In adivisión, an existing company is divided, creating a new company to which specified assets and liabilities are assigned. The shares of the new company are issued to the shareholders of the existing company, pro rata in proportion to their share ownership in the existing company.

The Spin-Off will be presented to the shareholders of Enersis for approval at the extraordinary shareholders’ meeting to be held on December 18, 2015 (the “Enersis Meeting”). Upon approval of the Spin-Off, holders of Enersis’s common stock (“Enersis Shares”) will have the right to receive one share of common stock of Enersis Chile (“Enersis Chile Shares”) for each Enersis Share.

Following the approval of the Spin-Off by the shareholders of Enersis at the Enersis Meeting (the date of such approval, the “Approval Date”), subject to the receipt of necessary authorizations, the completion of legal formalities and the satisfaction of the conditions precedent, the following actions will occur:

• Enersis Chile will be established as a separate company, with a fully independent legal existence and full capacity to own and dispose of its assets. Our initial interim Board of Directors will be elected at the Enersis Meeting to serve until the first annual ordinary shareholders’ meeting of Enersis Chile expected to be held in April 2016.

• Specified assets and liabilities of Enersis relating to the Chilean Business, including the shares of specified combined entities and jointly controlled entities, will be transferred to Enersis Chile. All of the Chilean Business to be conveyed to Enersis Chile are conducted by separate operating entities, and the continuity of existence of those entities will be undisturbed by the Separation.

• Certain agreements to accomplish the separation of Enersis’ businesses in the Spin-Off and to provide for ongoing relationships between Enersis and Enersis Chile will take effect.

Based on the unaudited pro forma condensed combined statements of financial position prepared in connection with the Separation, Enersis will convey to Enersis Chile, and Enersis Chile will be formed with, assets amounting to Ch$ 5,149,298 million, liabilities amounting to Ch$ 2,179,853 million and stockholders’ equity of Ch$ 2,969,444 million. These figures will be adjusted to reflect amounts as of the effective date of the Separation.

Promptly following the Approval Date, Enersis shareholders’ resolution from the Enersis Meeting approving the Spin-Off will be notarized and registered with the Chilean Commerce Registry (Registro de Comercio del Conservador de Bienes Raíces de Santiago) and a notice of the Separation will be published in theDiario Oficial.

107

The Board of Directors of Enersis must grant the necessary powers-of-attorney to execute one or more documents necessary or convenient to certify compliance with the conditions precedent to which the Spin-Off is subject, certify that the assets subject to registration are assigned to Enersis Chile, and grant the Public Deed certifying the satisfaction of the conditions precedent for the Spin-Off (the “Public Deed”) within 10 calendar days of the satisfaction of all of the conditions precedent. The Separation will be fully effective as of the first calendar day of the month following the date on which the Public Deed is granted. However, until the registration of the Enersis Chile Shares with the SVS and the SEC is completed, Enersis Chile Shares and ADS will not be delivered or traded separately.

Conditions Precedent

In addition to the receipt of Enersis’ shareholder approval at the Meeting and the completion of legal formalities, the effectiveness of the Separation is subject to the following conditions precedent:

• Shareholders of Endesa Chile must have approved the spin-off of Endesa Américas at an extraordinary shareholders’ meeting of Endesa Chile, the minutes of such meeting must have been duly recorded as a public deed and the extracts of such minutes must have been duly registered and published pursuant to Chilean law; and

• Shareholders of Chilectra must have approved the spin-off of Chilectra Américas at an extraordinary shareholders’ meeting of Chilectra, the minutes of such meeting must have been duly recorded as a public deed and the extracts of such minutes must have been duly registered and published pursuant to Chilean law.

As described above, the Public Deed must be executed within 10 calendar days of the satisfaction of all of the conditions precedent.

Share Capital and Capital Structure of Enersis Chile

Immediately after the effectiveness of the Spin-Off the share capital of Enersis Chile will be Ch$ 2,229,108,974,538. Enersis and Enersis Chile will initially have the same shareholders, and they will continue to be controlled by the same group of shareholders.

Shareholder Approval

On November 5, 2015, a majority of the Board of Directors of Enersis determined that the Reorganization, including the Spin-Off and the Merger, was in the best interest of Enersis. On November 10, 2015, the Board of Directors of Enersis resolved to summon the Enersis Meeting to approve the Spin-Off.

At the Enersis Meeting, the shareholders of Enersis will vote to approve the Spin-Off, which includes the Separation establishing Enersis Chile and allocating certain assets and liabilities of Enersis relating to the Chilean Business to Enersis Chile. The approval of the Spin-Off requires the affirmative vote of holders of at least two-thirds of Enersis’ outstanding common stock. Enel Iberoamérica, S.R.L., a wholly owned subsidiary of Enel, both directly and through its wholly owned subsidiary, Enel Latinoamérica, S.A., owns 60.6% of Enersis’ common stock and intends to vote all of its shares in favor of the Spin-Off at the extraordinary shareholders’ meeting.

Costs Associated with the Spin-Off

Enersis will assume the notary fees, duties and other costs incurred in connection with the Spin-Off, except for those fees, duties and other costs that by their nature are incurred by any combined entity of Enersis, which shall be assumed by that entity.

Enersis may also enter into a tax indemnity agreement with Endesa Chile pursuant to which Enersis will indemnify Endesa Chile for net tax costs paid by Endesa Chile in connection with Endesa Chile’s spin-off of

108

Endesa Américas. This indemnification would be applicable only if the Merger is not approved before December 31, 2017 due to reasons not attributable to Endesa Américas or Endesa Chile or an event of force majeure has occurred.

Third Party Approvals and Consents

With respect to any obligation of Enersis that will be assigned to Enersis Chile, consent of the relevant creditor may be required in order for Enersis Chile to succeed to the rights and obligations of Enersis. In these cases, failure to obtain consent from the creditor may require that Enersis remain liable for such obligation of Enersis Chile. Enersis Chile will agree to indemnify Enersis against liabilities of this kind.

Description of Distribution

Distribution of Enersis Chile Shares

Once the Separation is effective, we will apply to register the Enersis Chile Shares in the Securities Registry of the SVS and to list them for trading on the Chilean Stock Exchanges. Once the SVS has authorized the registration of our shares, they will be distributed to their legal holders. Distribution of shares that are not deposited with the Chilean Central Securities Depositary (DCV Registros, S.A., Depósito Central de Valores, or the “DCV”), the clearing system for securities traded on the Chilean Stock Exchanges, will be made against the presentation of the Enersis share certificates. For shares deposited with the DCV, distribution will generally be made by book-entry annotation in the shareholder list maintained by the DCV, by which holders of outstanding Enersis Shares will receive one Enersis Chile Share for each Enersis Share.

Holders of Enersis Shares as of a specified record date, referred to as the Share Record Date, will receive Enersis Chile Shares on the “Share Distribution Date.” Enersis will advise shareholders at a later time of the Share Record Date and the Share Distribution Date. The Share Distribution Date will not occur until the registration of Enersis Chile Shares under Chilean and U.S. securities laws is effective. We cannot be certain when this will occur, but we expect it will be during the first quarter of 2016.

Following the Separation but prior to the Share Distribution Date, there will be no separate certificates for Enersis Chile Shares, and the right to receive Enersis Chile Shares will trade and be transferred together with Enersis Shares. Investors will not be able to buy or otherwise acquire, or sell or otherwise transfer or deliver, Enersis Shares or Enersis Chile Shares separately.

After the Spin-Off has become effective, distribution to shareholders of Enersis will take place on the Share Distribution Date in the following manner:

• Each holder of Enersis Shares will receive one Enersis Chile Share for each Enersis Share held; and

• Holders of Enersis Shares will continue to own the same number of Enersis Shares.

Beginning on the Share Distribution Date, it is expected that:

• Enersis Chile Shares will commence trading on the Chilean Stock Exchanges;

• Enersis Shares will trade on the Chilean Stock Exchanges separately from Enersis Chile Shares; and

• Shareholders will be able to trade Enersis Shares and Enersis Chile Shares separately.

Distribution of Enersis Chile ADSs

Upon the completion of the Spin-Off, each American Depositary Share (“ADS”) of Enersis (“Enersis ADS”) will represent, in addition to 50 Enersis Shares, the right to receive 50 Enersis Chile Shares. Enersis Chile will arrange with a U.S. depositary bank to issue ADSs of Enersis Chile (“Enersis Chile ADSs”), each representing 50 Enersis Chile Shares. Applications will be made to list the Enersis Chile ADSs on the NYSE.

109

On a date, referred to as the “ADS Distribution Date,” as promptly as practicable after the Share Distribution Date, each record holder of Enersis ADSs as of a specified date, referred to as the “ADS Record Date,” will receive one Enersis Chile ADS for each Enersis ADS.

Enersis Chile ADSs will be issued and distributed to each record holder of Enersis ADSs at the close of business (New York time) on the ADS Record Date. Enersis expects that the Depositary of the Enersis ADSs will announce the ADS Record Date and the ADS Distribution Date on or about the same date on which Enersis announces the Share Record Date and the Share Distribution Date, although no assurances can be given that such an announcement will be made concurrently.

Persons holding Enersis ADSs through the facilities of The Depository Trust Company, or DTC, will receive the distribution of Enersis Chile ADSs by book entry only, through the facilities of DTC. Persons holding Enersis ADSs directly will receive the distribution of Enersis Chile ADSs in the form of certificated American Depositary Receipts, representing Enersis Chile ADSs. These ADRs will be sent to direct holders of Enersis ADSs on or as soon as practicable after the ADS Distribution Date. Persons holding Enersis ADSs through a broker or other securities intermediary should consult such broker or other securities intermediary concerning distribution of the Enersis Chile ADSs.

Beginning on the ADS Distribution Date, it is expected that:

• Enersis Chile ADSs will commence trading on the NYSE;

• Enersis ADSs will trade on the NYSE separately from the Enersis Chile ADSs; and

• ADS holders will be able to trade Enersis ADSs and Enersis Chile ADSs separately.

Intercompany Arrangements

Immediately after the Spin-Off, Enersis Américas will not own any Enersis Chile Shares or Enersis Chile ADSs and Enersis Chile will not own any Enersis Shares or Enersis ADSs. Under Chilean law, Enersis Américas will remain jointly and severally liable for the obligations of Enersis assumed by Enersis Chile pursuant to the Spin-Off. Such liability, however, will not extend to any obligation to a person or entity that has given its express consent relieving Enersis Américas of such liability and approving the Spin-Off.

Following the Spin-Off, there will be a variety of contractual relationships between Enersis Américas and Enersis Chile, both to accomplish the Spin-Off and to provide for ongoing relationships. They fall into two broad categories:

Arrangements Related to the Approval of the Spin-Off.The separation of the two companies and the transfer of certain assets and liabilities of Enersis to Enersis Chile will be effected by the action of the shareholders of Enersis at the Meeting.

Intercompany Services. Enersis Américas and Enersis Chile will enter into intercompany agreements under which Enersis Chile will provide a variety of services to Enersis Américas and possibly vice versa. These services will include certain legal, financial, accounting, investor relations, data processing and other corporate support and administrative services. They will generally be provided at cost plus a specified percentage.

In addition, following the Spin-Off and the Endesa/Chilectra Spin-Offs, Enersis Chile and Enersis Américas may also have certain intercompany financial arrangements with Endesa Chile, Endesa Américas, Chilectra Chile and Chilectra Américas.

C. Markets.

In Chile, we will apply for Enersis Chile common stock to be traded on three stock exchanges: the Santiago Stock Exchange, the Electronic Stock Exchange and the Valparaíso Stock Exchange. The largest exchange in the

110

country, the Santiago Stock Exchange, was established in 1893 as a private company. Its equity consists of 48 shares as of the date of this information statement. As of December 31, 2014, 230 companies had shares listed on the Santiago Stock Exchange Equities, closed-end funds, fixed-income securities, short-term and money market securities, gold and U.S. dollars are traded on the Santiago Stock Exchange. The Santiago Stock Exchange also trades U.S. dollar futures and stock index futures. Securities are traded primarily through an open voice auction system; a firm offers system or the daily auction. Trading through the open voice system occurs on each business day from 9:30 a.m. to 4:00 p.m., during local standard time, and from 9:30 a.m. to 5:00 p.m. during daylight savings time (usually from November to March), which differs from New York City time by up to two hours, depending on the season. The Santiago Stock Exchange has an electronic trading system calledTelepregón, which operates continuously from 9:30 a.m. to 4:00 p.m. during local standard time, and from 9:00 a.m. to 5:00 p.m. during daylight savings time, on each business day. During local standard time, electronic auctions may be conducted four times a day, at 10:30 a.m., 11:30 a.m., 1:30 p.m., and 3:30 p.m. During daylight savings time there is an additional electronic auction at 4:30 p.m. More than 99% of the auctions and transactions take place electronically.

There are two share price indexes on the Santiago Stock Exchange, the General Shares Price Index, or IGPA, and the Selected Shares Price Index, or IPSA. The IGPA is calculated using the prices of shares that are traded at least 5% of the trading days of a year, with a total annual transactions exceeding UF 10,000 (Ch$ 253 million as of September 30, 2015, equivalent to US$ 0.36 million) and a free float representing at least 5% of the capital. The IPSA is calculated using the prices of the 40 shares with highest amounts traded, on a quarterly basis, and with a market capitalization above US$ 200 million. The shares included in the IPSA and IGPA are weighted according to the weighted value of the shares traded.

We will apply for Enersis Chile common stock to be traded in the United States, in the form of ADSs on the NYSE under a yet to be determined ticker symbol. Each ADS will represent 50 shares of common stock, with the ADSs in turn evidenced by American Depositary Receipts (“ADRs”). The ADRs will be issued under a Deposit Agreement among us, with Citibank, N.A. acting as Depositary, and the holders and beneficial owners from time to time of ADRs issued thereunder. Only persons in whose names ADRs are registered on the books of the Depositary will be treated by the Depositary as owners of ADRs.

The NYSE is open for trading Monday through Friday from 9:30 am to 4:00 pm, with the exception of holidays declared by the NYSE in advance. On the trading floor, the NYSE trades in a continuous auction format, where traders can execute stock transactions on behalf of investors. Specialist brokers act as auctioneers in an open outcry auction market to bring buyers and sellers together and to manage the actual auction. Customers can also send orders for immediate electronic execution or route orders to the floor for trade in the auction market. The NYSE works with U.S. regulators like the SEC and the Commodity Futures Trading Commission (“CFTC”) to coordinate risk management measures in the electronic trading environment through the implementation of mechanisms like circuit breakers and liquidity replenishment points.

D. Selling Shareholders.

Not applicable.

E. Dilution.

Not applicable.

F. Expense of the Issue.

Not applicable.

111

Item 10. Additional Information

A. Share Capital.

Immediately following the effectiveness of the Spin-Off, Enersis Chile’s authorized share capital will be Ch$2,229,108,975,438 divided into 49,092,772,762 common shares with no par value. For more information regarding the share capital of Enersis Chile, see “Item 3. Key Information—B. Capitalization and Indebtedness” and “—B. Memorandum and Articles of Association—Capitalization.”

B. Memorandum and Articles of Association.

Description of Share Capital

Set forth below is certain information concerning our share capital and a brief summary of certain significant provisions of Chilean law and the expected provisions of our by-laws, which will be substantially the same as the current by-laws of Enersis, except:

• Article Five will provide that the authorized capital of Enersis Chile will be Ch$ 2,229,108,974,538 divided into 49,092,772,762 registered ordinary shares, all of the same series and with no par value;

• Article Nine bis will not be included given that it refers to a regulation that has been repealed;

• Article Twenty-Four bis will not include references to Articles Nine bis and Thirty-Seven bis, which will not exist in the Enersis Chile by-laws;

• New Article Forty-Four will state that Enersis Chile will be subject to Resolution No. 667 issued by the Honorable Comisión Resolutiva (the former antitrust authority) dated October 30, 2002, provided that the restrictions under such resolution shall not apply to Enersis Chile in respect of the spin-off from Enersis Américas;

• A new Transitory Article Three will be added to confirm that Enersis Chile, from its incorporation, will voluntarily submit in advance to the rules established in Article 50 of the Chilean Companies Act relating to the election of independent directors and creation of a Directors’ Committee; and

• Other transitory articles that specifically apply to Enersis Chile in connection with the Spin-Off.

General

Shareholders’ rights in Chilean companies are governed by the company’s by-laws (Estatutos), which have the same purpose as the articles or the certificate of incorporation and the by-laws of a company incorporated in the United States, and by the Chilean Companies Act, Law No. 18,046. In addition, D.L. 3500, or the Pension Funds’ System Law, which permits the investment by Chilean pension funds in stock of qualified companies, indirectly affects corporate governance and prescribes certain rights of shareholders. In accordance with the Chilean Companies Act, legal actions by shareholders to enforce their rights as shareholders of the company must be brought in Chile in arbitration proceedings or, at the option of the plaintiff, before Chilean courts. Members of the Board of Directors, managers, officers and principal executives of the company, or shareholders that individually own shares with a book value or stock value higher that UF 5,000 (Ch$ 127 million as of September 30, 2015) do not have the option to bring the procedure to the courts.

The Chilean securities markets are principally regulated by the SVS under Securities Market Law, Law No. 18,045 and the Chilean Companies Act. These two laws state the disclosure requirements, restrictions on insider trading and price manipulation, and provide protection to minority shareholders. The Securities Market

112

Law sets forth requirements for public offerings, stock exchanges and brokers, and outlines disclosure requirements for companies that issue publicly offered securities. The Chilean Companies Act and the Securities Market Law, both as amended, state rules regarding takeovers, tender offers, transactions with related parties, qualified majorities, share repurchases, directors’ committee, independent directors, stock options and derivative actions.

Public Register

Once the Spin-Off is effective, we will be a publicly held stock corporation incorporated under the laws of Chile. We will be constituted by a public deed issued by a Santiago Notary Public. In connection with the Spin-Off, we will also register in Chile with the SVS and the Commercial Registrar (Registro de Comercio del Conservador de Bienes Raíces y Comercio de Santiago), as well as with the U.S. SEC.

Reporting Requirements Regarding Acquisition or Sale of Shares

Under Article 12 of the Securities Market Law and General Rule 269 of the SVS, certain information regarding transactions in shares of a publicly held stock corporation or in contracts or securities whose price or results depend on, or are conditioned in whole or in part on the price of such shares, must be reported to the SVS and the Chilean stock exchanges. Since ADSs are deemed to represent the shares of common stock underlying the ADRs, transactions in ADRs will be subject to these reporting requirements and those established in Circular 1375 of the SVS. Shareholders of publicly held stock corporations are required to report to the SVS and the Chilean stock exchanges:

• any direct or indirect acquisition or sale of shares made by a holder who owns, directly or indirectly, at least 10% of a publicly held stock corporation’s subscribed capital;

• any direct or indirect acquisition or sale of contracts or securities whose price or results depend on or are conditioned in whole or in part on the price of shares made by a holder who owns, directly or indirectly, at least 10% of a publicly held stock corporation’s subscribed capital;

• any direct or indirect acquisition or sale of shares made by a holder who, due to an acquisition of shares of such publicly held stock company, results in the holder acquiring, directly or indirectly, at least 10% of a publicly held stock company’s subscribed capital; and

• any direct or indirect acquisition or sale of shares in any amount, made by a director, receiver, principal executive, general manager or manager of a publicly held stock company.

In addition, majority shareholders of a publicly held stock corporation must inform the SVS and the Chilean stock exchanges if such transactions are entered into with the intention of acquiring control of the company or if they are making a passive financial investment instead.

Under Article 54 of the Securities Market Law and General Rule 104 enacted by the SVS, any person who directly or indirectly intends to take control of a publicly held stock corporation must disclose this intent to the market at least ten business days in advance of the proposed change of control and, in any event, as soon as the negotiations for the change of control have taken place or reserved information of the publicly held stock corporation has been provided.

Corporate Objectives and Purposes

Article 4 of our by-laws is expected to provide that our corporate objectives and purposes are, among other things, to conduct the exploration, development, operation, generation, distribution, transformation, or sale of energy in any form, directly or through other companies, as well as to provide engineering-consultancy services related to these objectives, to make loans to related companies, susidaries and affiliates and to participate in the telecommunications business, all restricted to Chile.

113

Board of Directors

Our Board of Directors will initially consist of seven members who will be elected for an interim term at the ESM of the shareholders of Enersis to be held on December 18, 2015 to hold office until the first OSM of the shareholders of Enersis Chile to be held in April 2016. At the 2016 OSM, the entire Board of Directors consisting of seven members will be elected to a three-year term. Following the end of their term, they may be either re-elected or replaced.

The seven directors that will be elected at the OSM will be the seven individual nominees who receive the highest number of votes. Each shareholder may vote his shares in favor of one nominee or may apportion his shares among any number of nominees.

The effect of these voting provisions is to ensure that a shareholder owning more than 12.5% of our shares is able to secure the election of a member of the Board. A majority of the Board of Directors, four members, can be secured with more than 50% of the shares.

Normally, the compensation of the directors is established annually at the OSM. Initially, the compensation of the interim Board of Directors will be established at the ESM of the shareholders of Enersis to be held on December 18, 2015 which is expected to be similar to the current Enersis’ director compensations. See “Item 6. Directors, Senior Management and Employees —B. Compensation.”

Future agreements that will be entered into by us with related parties can only be executed when such agreements serve our interest, and their price, terms and conditions are consistent with prevailing market conditions at the time of their approval and comply with all the requirements and procedures indicated in Article 147 of the Chilean Companies Act.

Certain Powers of the Board of Directors

Our by-laws will provide that every agreement or contract that we enter into with our controlling shareholder, our directors or executives, or with our related parties, must be previously approved by two thirds of the Board of Directors and be included in the Board meetings, and must comply with the provisions of the Chilean Companies Act.

Our by-laws will not contain provisions relating to:

• the directors’ power, in the absence of an independent quorum, to vote on compensation for themselves or any members of their body;

• borrowing powers exercisable by the directors and how such borrowing powers can be varied;

• retirement or non-retirement of directors under an age limit requirement; or

• number of shares, if any, required for directors’ qualification.

Certain Provisions Regarding Shareholder Rights

Our capital will be comprised of only one class of shares, all of which will be ordinary shares and have the same rights.

Our by-laws will not contain any provisions relating to:

• redemption provisions;

• sinking funds; or

• liability for capital reductions by us.

114

Under Chilean law, the rights of our stockholders may only be modified by an amendment to the by-laws that complies with the requirements explained below under “Item 10. Additional Information — B. Memorandum and Articles of Association. — Shareholders’ Meetings and Voting Rights.”

Capitalization

Under Chilean law, only the shareholders of a company acting at an ESM have the power to authorize a capital increase. When an investor subscribes for shares, these are officially issued and registered under his name, and the subscriber is treated as a shareholder for all purposes, except receipt of dividends and for return of capital in the event that the shares have been subscribed but not paid for. The subscriber becomes eligible to receive dividends only for the shares that he has actually paid for or, if the subscriber has paid for only a portion of such shares, the pro rata portion of the dividends declared with respect to such shares unless the company’s by-laws provide otherwise. If a subscriber does not fully pay for shares for which the subscriber has subscribed on or prior to the date agreed upon for payment, notwithstanding the actions intended by the company to collect payment, the company is entitled to auction the shares on the stock exchange where such shares are traded, for the account and risk of the debtor, the number of shares held by the debtor necessary for the company to pay the outstanding balances and disposal expenses. However, until such shares are sold at auction, the subscriber continues to hold all the rights of a shareholder, except the right to receive dividends and return of capital. The Chief Executive Officer, or the person replacing him, will reduce in the shareholders’ register the number of shares in the name of the debtor shareholder to the number of shares that remain, deducting the shares sold by the company and settling the debt in the amount necessary to cover the result of such disposal after the corresponding expenses. When there are authorized and issued shares for which full payment has not been made within the period fixed by shareholders at the same ESM at which the subscription was authorized (which in no case may exceed three years from the date of such meeting), these shall be reduced in the non-subscribed amount until that date. With respect to the shares subscribed and not paid following the term mentioned above, the Board must proceed to collect payment, unless the shareholders’ meeting authorizes (by two thirds of the voting shares) a reduction of the company’s capital to the amount effectively collected, in which case the capital shall be reduced by force of law to the amount effectively paid. Once collection actions have been exhausted, the Board should propose to the shareholders’ meeting the approval by simple majority of the write-off of the outstanding balance and the reduction of capital to the amount effectively recovered.

Our subscribed and fully paid capital is expected to total Ch$ 2,229 billion and to consist of 49,092,772,762 shares.

Preemptive Rights and Increases of Share Capital

The Chilean Companies Act requires Chilean companies to grant shareholders preemptive rights to purchase a sufficient number of shares to maintain their existing ownership percentage of such company whenever such company issues new shares.

Under Chilean law, preemptive rights are exercisable or freely transferable by shareholders during a 30-day period. The options to subscribe for shares in capital increases of the company or of any other securities convertible into shares or that confer future rights over these shares, should be offered, at least once, to the shareholders pro rata to the shares held registered in their name at midnight on the fifth business day prior to the date of the start of the preemptive rights period. The preemptive rights offering and the start of the 30-day period for exercising them shall be communicated through the publication of a prominent notice, at least once, in the newspaper that should be used for notifications of shareholders’ meetings. During such 30-day period, and for an additional period of up to 30-days immediately following the initial 30-day period, publicly held stock corporations are not permitted to offer any unsubscribed shares to third parties on terms which are more favorable than those offered to their shareholders. At the end of the second 30-day period, a Chilean publicly held stock corporation is authorized to sell non-subscribed shares to third parties on any terms, provided they are sold on one of the Chilean stock exchanges.

115

Shareholders’ Meetings and Voting Rights

An OSM must be held within the first four months following the end of our fiscal year. An ESM may be called by the Board of Directors when deemed appropriate, or when requested by shareholders representing at least 10% of the issued shares with voting rights, or by the SVS. To convene an OSM or an ESM, notice must be given three times in a newspaper located in our corporate domicile. The newspaper designated by our shareholders is El Mercurio de Santiago. The first notice must be published not less than 15-days and no more than 20-days in advance of the scheduled meeting. Notice must also be mailed to each shareholder, to the SVS and to the Chilean stock exchanges.

The OSM shall be held on the day stated in the notice and should remain in session until having exhausted all the matters stated in the notice. However, once constituted, upon the proposal of the chairman or shareholders representing at least 10% of the shares with voting rights, the majority of the shareholders present may agree to suspend it and to continue it within the same day and place, with no new constitution of the meeting or qualification of powers being necessary, recorded in one set of minutes. Only those shareholders who were present or represented may attend the recommencement of the meeting with voting rights.

Under Chilean law, a quorum for a shareholders’ meeting is established by the presence, in person or by proxy, of shareholders representing at least a majority of the issued shares with voting rights of a company. If a quorum is not present at the first meeting, a reconvened meeting can take place at which the shareholders present are deemed to constitute a quorum regardless of the percentage of the shares represented. This second meeting must take place within 45-days following the scheduled date for the first meeting. Shareholders’ meetings adopt resolutions by the affirmative vote of a majority of those shares present or represented at the meeting. An ESM must be called to take the following actions:

• a transformation of the company into a form other than a publicly held stock corporation under the Chilean Companies Act, a merger or split-up of the company;

• an amendment to the term of duration or early dissolution of the company;

• a change in the company’s domicile;

• a decrease of corporate capital;

• an approval of capital contributions in kind and non-monetary assessments;

• a modification of the authority reserved to shareholders or limitations on the Board of Directors;

• a reduction in the number of members of the Board of Directors;

• a disposition of 50% or more of the assets of the company, whether it includes disposition of liabilities or not, as well as the approval or the amendment of the business plan which contemplates the disposition of assets in an amount greater that such percentage;

• the disposition of 50% or more of the assets of a combined entity, as long as such combined entity represents at least 20% of the assets of the corporation, as well as any disposition of its shares that results in the parent company losing its position as controller;

• the form of distributing corporate benefits;

• issue of guarantees for third-party liabilities which exceed 50% of the assets, except when the third party is a combined entity of the company, in which case approval of the Board of Directors is deemed sufficient;

• the purchase of the company’s own shares;

• other actions established by the by-laws or the laws;

• certain remedies for the nullification of the company’s by-laws;

116

• inclusion in the by-laws of the right to purchase shares from minority shareholders, when the controlling shareholders reaches 95% of the company’s shares by means of a tender offer for all of the company’s shares, where at least 15% of the shares have been acquired from unrelated shareholders; and

• approval or ratification of acts or contracts with related parties.

Regardless of the quorum present, the vote required for any of the actions above is at least two-thirds of the outstanding shares with voting rights.

By-law amendments for the creation of a new class of shares, or an amendment to or an elimination of those classes of shares that already exist, must be approved by at least two-thirds of the outstanding shares of the affected series.

Chilean law does not require a publicly held stock corporation to provide its shareholders the same level and type of information required by the securities laws regarding the solicitation of proxies. However, shareholders are entitled to examine the financial statements of a publicly held stock corporation within the 15-day period before its scheduled OSM. Under Chilean law, a notice of a shareholders meeting listing matters to be addressed at the meeting must be mailed at least 15 days prior to the date of such meeting, and, an indication of the way complete copies of the documents that support the matters submitted for voting can be obtained, which must also be made available to shareholders on our website. In the case of an OSM, our annual report of activities, which will include audited financial statements, must also be made available to shareholders and published on our website at: www.enersischile.cl.

The Chilean Companies Act provides that, upon the request by the Directors’ Committee or by shareholders representing at least 10% of the issued shares with voting rights, a Chilean company’s annual report must include, in addition to the materials provided by the Board of Directors to shareholders, such shareholders’ comments and proposals in relation to the company’s affairs. In accordance with Article 136 of the Chilean Companies Regulation (“Reglamento de Sociedades Anónimas”), the shareholder(s) holding or representing 10% or more of the shares issued with voting rights, may:

• make comments and proposals relating to the progress of the corporate businesses in the corresponding year, no shareholder being able to make individually or jointly more than one presentation. These observations should be presented in writing to the company concisely, responsibly and respectfully, and the respective shareholder(s) should state their willingness for these to be included as an appendix to the annual report. The board shall include in an appendix to the annual report of the year a faithful summary of the pertinent comments and proposals the interested parties had made, provided they are presented during the year or within 30-days after its ending; or

• make comments and proposals on matters that the board submits for the knowledge or voting of the shareholders. The board shall include a faithful summary of those comments and proposals in all information it sends to shareholders, provided the shareholders’ proposal is received at the offices of the company at least 10-days prior to the date of dispatch of the information by the company. The shareholders should present their comments and proposals to the company, expressing their willingness for these to be included in the appendix to the respective annual report or in information sent to shareholders, as the case may be. The observations referred to in this Article may be made separately by each shareholder holding 10% or more of the shares issued with voting rights or shareholders who together hold that percentage, who should act as one.

Similarly, the Chilean Companies Act provides that whenever the Board of Directors of a publicly held stock corporation convenes an OSM and solicits proxies for the meeting, or circulates information supporting its decisions or other similar material, it is obligated to include the pertinent comments and proposals that may have been made by the Directors’ Committee or by shareholders owning 10% or more of the shares with voting rights who request that such comments and proposals be so included.

117

Only shareholders registered as such with us, as of 11:59 p.m. on the fifth business day prior to the date of a meeting, will be entitled to attend and vote their shares. A shareholder may appoint another individual, who does not need to be a shareholder, as his proxy to attend the meeting and vote on his behalf. Proxies for such representation shall be given for all the shares held by the owner. The proxy may contain specific instructions to approve, reject, or abstain with respect to any of the matters submitted for voting at the meeting and which were included in the notice. Every shareholder entitled to attend and vote at a shareholders’ meeting shall have one vote for every share subscribed.

There are no limitations imposed by Chilean law or our expected by-laws on the right of nonresidents or foreigners to hold or vote shares of common stock. However, the registered holder of the shares of common stock represented by ADSs, and evidenced by outstanding ADSs, is the custodian of the depositary. Accordingly, holders of ADSs will not be entitled to receive notice of meetings of shareholders directly or to vote the underlying shares of common stock represented by ADS directly. A deposit agreement will contain provisions pursuant to which the depositary will agree to solicit instructions from registered holders of ADSs as to the exercise of the voting rights pertaining to the shares of common stock represented by the ADSs. Subject to compliance with the requirements of the deposit agreement and receipt of such instructions, the depositary will agree to endeavor, insofar as practicable and permitted under Chilean law and the provisions of the by-laws, to vote or cause to be voted (or grant a discretionary proxy to the Chairman of the Board of Directors or to a person designated by the Chairman of the Board of Directors to vote) the shares of common stock represented by the ADSs in accordance with any such instruction. The depositary shall not itself exercise any voting discretion over any shares of common stock underlying ADSs. If no voting instructions are received by the depositary from a holder of ADSs with respect to the shares of common stock represented by the ADSs, on or before the date established by the depositary for such purpose, the shares of common stock represented by the ADS, may be voted in the manner directed by the Chairman of the Board, or by a person designated by the Chairman of the Board, subject to limitations set forth in the deposit agreement.

Dividends and Liquidation Rights

According to the Chilean Companies Act, unless otherwise decided by unanimous vote of its issued shares eligible to vote, all companies must distribute a cash dividend in an amount equal to at least 30% of their combined net income, before amortization and negative goodwill for each year (calculated according to the local accounting rules that will apply to us when preparing financial statements to be submitted to the SVS), unless and except to the extent we have carried forward losses. The law provides that the Board of Directors must agree to the dividend policy and inform such policy to the shareholders at the OSM.

Any dividend in excess of 30% of net income may be paid, at the election of the shareholder, in cash, or in our shares, or in shares of publicly held corporations owned by us. Shareholders who do not expressly elect to receive a dividend other than in cash are legally presumed to have decided to receive the dividend in cash.

Dividends which are declared but not paid within the appropriate time period set forth in the Chilean Companies Act (as to minimum dividends, 30-days after declaration; as to additional dividends, the date set for payment at the time of declaration) are adjusted to reflect the change in the value of UF, from the date set for payment to the date such dividends are actually paid. Such dividends also accrue interest at the then-prevailing rate for UF-denominated deposits during such period. The right to receive a dividend lapses if it is not claimed within five years from the date such dividend is payable. Payments not collected in such period are transferred to the volunteer fire department.

In the event of our liquidation, the shareholders would participate in the assets available in proportion to the number of paid-in shares held by them, after payment to all creditors.

Approval of Financial Statements

The Board of Directors will be required to submit our financial statements to the shareholders annually for their approval. If the shareholders by a vote of a majority of shares present (in person or by proxy) at the

118

shareholders’ meeting reject the financial statements, the Board of Directors must submit new financial statements no later than 60-days from the date of such meeting. If the shareholders reject the new financial statements, the entire Board of Directors is deemed removed from office and a new board is elected at the same meeting. Directors who individually approved such financial statements are disqualified for reelection for the following period.

Change of Control

The Capital Markets Law establishes a comprehensive regulation related to tender offers. The law defines a tender offer as the offer to purchase shares of companies which publicly offer their shares or securities convertibles into shares and which offer is made to shareholders to purchase their shares under conditions which allow the bidder to reach a certain percentage of ownership of the company within a fixed period of time. These provisions apply to both voluntary and hostile tender offers.

Acquisition of Shares

No provision in our by-laws will discriminate against any existing or prospective holder of shares as a result of such shareholder owning a substantial number of shares. However, no person may directly or indirectly own more than 65% of the outstanding shares of our stock. The foregoing restriction will not apply to the depositary as record owner of shares represented by ADRs, but it will apply to each beneficial ADS holder. Additionally, our by-laws will prohibit any shareholder from exercising voting power with respect to more than 65% of the common stock owned by such shareholder or on behalf of others representing more than 65% of the outstanding issued shares with voting rights.

Right of Dissenting Shareholders to Tender Their Shares

The Chilean Companies Act provides that upon the adoption of any of the resolutions enumerated below at a meeting of shareholders, dissenting shareholders acquire the right to withdraw from the company and to compel the company to repurchase their shares, subject to the fulfillment of certain terms and conditions. In order to exercise such withdrawal rights, holders of ADRs must first withdraw the shares represented by their ADRs pursuant to the terms of the deposit agreement.

“Dissenting” shareholders are defined as those who at a shareholders’ meeting vote against a resolution that results in the withdrawal right, or who if absent from such meeting, state in writing their opposition to the respective resolution, within the 30-days following the shareholders’ meeting. Shareholders present or represented at the meeting and who abstain in exercising their voting rights shall not be considered as dissenting. The right to withdraw should be exercised for all the shares that the dissenting shareholder had registered in their name on the date on which the right is determined to participate in the meeting at which the resolution is adopted that motivates the withdrawal and which remains on the date on which their intention to withdraw is communicated to the company.

The price paid to a dissenting shareholder of a publicly held stock corporation whose shares are quoted and actively traded on one of the Chilean stock exchanges is the weighted average of the sales prices for the shares as reported on the Chilean stock exchanges on which the shares are quoted for the two-month period between the ninetieth and the thirtieth day before the shareholders’ meeting giving rise to the withdrawal right. If, because of the volume, frequency, number and diversity of the buyers and sellers, the SVS determines that the shares are not actively traded on a stock exchange, the price paid to the dissenting shareholder shall be the book value. Book value for this purpose shall equal paid capital plus reserves and profits, less losses, divided by the total number of subscribed shares, whether entirely or partially paid. For the purpose of making this calculation, the last combined statements of financial position is used, as adjusted to reflect inflation up to the date of the shareholders’ meeting which gave rise to the withdrawal right.

119

Article 126 of the Chilean Companies Act Regulations establishes that in cases where the right to withdraw arises, the company shall be obliged to inform the shareholders of this situation, the value per share that will be paid to shareholders exercising their right to withdraw and the term for exercising it. Such information should be given to shareholders at the same meeting at which the resolutions are adopted giving rise to the right of withdrawal, prior to its voting. A special communication should be given to the shareholders with rights, within two days following the date on which the rights to withdraw are born. In the case of publicly held companies, such information shall be communicated by a prominent notice in a newspaper with a wide national circulation and on its website, plus a written communication addressed to the shareholders with rights at the address they have registered with the company. The notice of the shareholders meeting that should pronounce on a matter that could originate withdrawal rights should mention this circumstance.

The resolutions that result in a shareholder’s right to withdraw include, among others, the following:

• the transformation of the company into an entity which is not a publicly held stock corporation governed by Chilean Companies Act;

• the merger of the company with another company;

• disposition of 50% or more of the assets of the company, whether it includes disposition of liabilities or not, as well as the approval or the amendment of the business plan which contemplates the disposition of assets in an amount greater than such percentage;

• the disposition of 50% or more of the assets of a combined entity, as long as such combined entity represents at least 20% of the assets of the company, as well as any disposition of its shares that results in the parent company losing its position of controller;

• issue of guarantees for third parties’ liabilities which exceed 50% of the assets (if the third party is a combined entity of the company, the approval of the Board of Directors is sufficient);

• the creation of preferential rights for a class of shares or an amendment to the existing ones. In this case the right to withdraw only accrues to the dissenting shareholders of the class or classes of shares adversely affected;

• certain remedies for the nullification of the corporate by-laws; and

• such other causes as may be established by the law or by the company’s by-laws.

Investments by AFPs

The Pension Funds’ System Law permits AFPs to invest their funds in companies that are subject to Title XII and, subject to greater restrictions than other companies. The determination of which stocks may be purchased by AFPs is made by the Risk Classification Committee. The Risk Classification Committee establishes investment guidelines and is empowered to approve or disapprove those companies that are eligible for AFP investments. We expect that after the Spin-Off, we will be a Title XII company and we will be approved by the Risk Classification Committee.

Title XII companies are required to have by-laws that

• limit the ownership of any shareholder to a specified maximum percentage,

• require that certain actions be taken only at a meeting of the shareholders, and

• give the shareholders the right to approve certain investment and financing policies.

Registrations and Transfers

Shares issued by us will be registered with an administrative agent, which we expect to beDCV Registros S.A. This entity will also be responsible for our shareholders registry. In case of jointly-owned shares, an attorney-in-fact must be appointed to represent the joint owners in dealing with us.

120

C. Material Contracts.

None.

D. Exchange Controls.

The Central Bank of Chile is responsible for, among other things, monetary policies and exchange controls in Chile. Currently applicable foreign exchange regulations are set forth in the Compendium of Foreign Exchange Regulations (the “Compendium”) approved by the Central Bank of Chile in 2002. Appropriate registration of a foreign investment in Chile permits the investor access to the Formal Exchange Market. Foreign investments can be registered with the Foreign Investment Committee under D.L. 600 of 1974 or can be registered with the Central Bank of Chile under the Central Bank Act, Law 18840 of October 1989.

a) Foreign Investments Contracts and Chapter XIV

The following is a summary of certain provisions of Chapter XIV that will be applicable to all shareholders (and ADS holders). This summary does not purport to be complete and is qualified in its entirety by reference to Chapter XIV. Chapter XIV regulates the following type of investments: credits, deposits, investments and equity contributions. A Chapter XIV investor may at any time repatriate an investment made in us upon sale of our shares, and the profits derived therefrom, with no monetary ceiling, subject to the then effective regulations, which must be reported to the Central Bank of Chile.

Except for compliance with tax regulations and some reporting requirements, currently there are no rules in Chile affecting repatriation rights, except that the remittance of foreign currency must be made through a Formal Exchange Market entity. However, the Central Bank of Chile has the authority to change such rules and impose exchange controls.

The Compendium and International Bond Issuances

Chilean issuers may offer bonds issued by the Central Bank of Chile internationally under Chapter XIV, as amended, of the Compendium.

E. Taxation.

Chilean Tax Considerations

The following discussion summarizes material Chilean income and withholding tax consequences to foreign holders arising from the ownership and disposition of shares and ADSs and, to the extent any are issued, rights and ADS rights. The summary that follows does not purport to be a comprehensive description of all of the tax considerations that may be relevant to a decision to purchase, own or dispose of shares or ADSs and rights or ADS rights, if any, and does not purport to deal with the tax consequences applicable to all categories of investors, some of which may be subject to special rules. Holders of shares and ADSs are advised to consult their own tax advisors concerning the Chilean and other tax consequences of the ownership of shares or ADSs.

The summary that follows is based on Chilean law, in effect on the date hereof, and is subject to any changes in these or other laws occurring after such date, possibly with retroactive effect. Under Chilean law, provisions contained in statutes such as tax rates applicable to foreign investors, the computation of taxable income for Chilean purposes and the manner in which Chilean taxes are imposed and collected may be amended only by another law. In addition, the Chilean tax authorities enact rulings and regulations of either general or specific application and interpret the provisions of the Chilean Income Tax Law. Chilean tax may not be assessed retroactively against taxpayers who act in good faith relying on such rulings, regulations and interpretations, but Chilean tax authorities may change their rulings, regulations and interpretations in the future. The discussion that follows is also based, in part, on representations of the depositary, and assumes that each obligation in the

121

Deposit Agreement and any related agreements will be performed in accordance with its terms. As of this date, there is currently no applicable income tax treaty in effect between the United States and Chile. However, in 2010 the United States and Chile signed an income tax treaty that will enter into force once the treaty is ratified by both countries. There can be no assurance that the treaty will be ratified by either country. The following summary assumes that there is no applicable income tax treaty in effect between the United States and Chile. As used in this information statement, the term “foreign holder” means either:

• in the case of an individual holder, a person who is not a resident of Chile; for purposes of Chilean taxation, an individual is resident of Chile if he or she has resided in Chile for more than six months in one calendar year, or a total of more than six months in two consecutive fiscal years; or

• in the case of a legal entity holder, an entity that is not organized under the laws of Chile, unless the shares or ADSs are assigned to a branch, agent, representative or permanent establishment of such entity in Chile.

Taxation of Shares and ADSs

Taxation of Cash Dividends and Property Distributions

General Rule: The following taxation of cash dividends and property distributions applies until 2016. Cash dividends paid with respect to the shares or ADSs held by a foreign holder will be subject to Chilean withholding tax, which is withheld and paid by the company. As described in the example below, the amount of the Chilean withholding tax is determined by applying a 35% rate to a “grossed-up” distribution amount (such amount equal to the sum of the actual distribution amount and the correlative Chilean corporate income tax paid by the issuer), and then subtracting as a credit such correlative Chilean corporate income tax paid by the issuer. For years 2004 through 2010, the Chilean corporate income tax rate was 17%; for 2011 and until 2014 the rate was 20%. In September 2014, a tax reform was enacted (Law 20,780), which, among other topics, progressively increased the corporate income tax (“CIT”). The CIT rate will be adjusted as follows: in 2014 it increased from 20% to 21%; in 2015 it increased to 22.5%; in 2016 it increases to 24%; in 2017, depending on which of the two new alternative systems enacted as part of the 2014 tax reform (discussed below) is chosen, the rate increases to 25% for companies electing the accrued income basis and 25.5% for companies electing the cash basis for shareholders and as of 2018 it will remain at 25% for companies that elect the accrued income basis and it will increase to 27% for companies that elect the cash basis for shareholders.

The example below illustrates the effective Chilean withholding tax burden on a cash dividend received by a foreign holder, assuming a Chilean withholding tax base rate of 35%, an effective Chilean corporate income tax rate of 22.5 % (CIT rate for 2015) and a distribution of 50% of the net income of the company distributable after payment of the Chilean corporate income tax:

Line	Concept and calculation assumptions	Amount
1	Company taxable income (based on Line 1 = 100)		100.0
2	Chilean corporate income tax: 22.5% x Line 1		22.5
3	Net distributable income: Line 1 — Line 2		77.5
4	Dividend distributed (50% of net distributable income): 50% of Line 3		38.75
5	Withholding tax: (35% of (the sum of Line 4 and 50% of Line 2))		(17.5	)
6	Credit for 50% of Chilean corporate income tax: 50% of Line 2		11.25
7	Net withholding tax: Line 5 + Line 6		(6.25	)
8	Net dividend received: Line 4 - Line 7		32.5
9	Effective dividend withholding rate: Line 7 / Line 4		16.13	%

122

In general, the effective Chilean dividend withholding tax rate, after giving effect to the credit for the Chilean corporate income tax paid by the company, can be computed using the following formula:

Effective Dividend	=	(Withholding tax rate) - (Chilean corporate income tax rate)
Withholding Tax Rate		1 - (Chilean corporate income tax rate)

Using the rates prevailing until 2015, the Effective Dividend Withholding Rate is

(35%-22.5%) / (100%-22.5%) = 16.13%

Dividends are generally assumed to have been paid out of our oldest retained profits for purposes of determining the level of Chilean corporate income tax that was paid by us. For information as to our retained earnings for tax purposes and the tax credit available on the distribution of such retained earnings, see Note 19 of the Notes to our interim combined financial statements.

Under Chilean Income Tax Law, dividend distributions made in property are subject to the same Chilean tax rules as cash dividends. Stock dividends that represent free shares distributed to foreign shareholders as a consequence of a capitalization made on the same corporation are not subject to Chilean taxation.

Exceptions: Despite the aforementioned general rule, there are special circumstances under which a different tax treatment would apply depending on the source of the income or due to special circumstances existing at the date of the dividend distribution. The most common special cases are briefly described below:

1) Circumstances where there is no CIT credit against the Chilean withholding tax: These cases are when: (i) profits paid as dividends (following the seniority rule indicated above) exceed a company’s taxable income (such dividend distributions in excess of a company’s taxable income determined as of December 31 of the distribution’s year will be subject to the Chilean withholding tax rate of 35%, without the CIT credit; in relation to the provisional withholding rule applicable on the date of the dividend payment, please see number 3 below); or (ii) the income was not subject to CIT due to an exemption of the Chilean corporate income tax, in which case the foreign holder will be also subject to the Chilean withholding tax rate of 35% without the CIT credit.

2) Circumstances where dividends have been attributed to income exempted from all the Chilean income taxes: In these cases, dividends distributed by a company to the foreign holder will not be subject to Chilean withholding tax. Income exempted from Chilean income tax is expressly listed in the Chilean Income Tax Law.

3) Circumstances where dividends are subject to a provisional withholding tax: In the event that on the date of the dividend distribution there are no earnings on which income tax has been paid and there are no tax-exempt earnings, a 35% Chilean withholding tax with a provisional 22.5% Chilean CIT credit is applicable. This provisional 22.5% Chilean corporate income tax credit must be confirmed with the information of a company’s taxable income as of December 31 of the year in which the dividend was paid. A company can agree with the foreign holders to withhold a higher amount in order to avoid under withholding of the Chilean withholding tax.

4) Circumstances when it is possible to use certain credits in Chile against income taxes paid abroad, or “foreign tax credit”: This occurs when dividends distributed by the Chilean company have income generated by companies domiciled in third countries as their source. If that income was subject to withholding tax or corporate income tax in those third countries, such income will have a credit or “foreign tax credit” against corresponding Chilean taxes, which can be proportionally transferred to the shareholders of a Chilean company.

New System in effect starting in 2017

The tax reform released in September 2014 created two alternative mechanisms of shareholder-level income taxation beginning on January 1, 2017: a) accrued income basis (known as attributed-income system in Chile)

123

shareholder taxation and b) cash basis (known as partially-integrated system in Chile) shareholder taxation. One of these two alternative mechanisms must be chosen by companies in an ESM with a minimum vote of 2/3. The selection should be made before the end of 2016. Once the election is made, it will remain in effect for five years. If no regime is selected by the taxpayer, the law states that the default mechanism for foreign shareholders will be the cash basis mechanism (the most similar to the current system).

a) Accrued income basis

Shareholders would be taxed in Chile on income attributed to them as of the end of the tax year in which the income is generated, eliminating the taxable profits fund ledger (“FUT” in its Spanish acronym). These profits would be taxed at the shareholder level whether or not they are distributed. The underlying CIT paid at the entity level may be used by shareholders as a credit to reduce the Chilean shareholder tax. Therefore, the combined total company and shareholder Chilean income tax burden remains at 35%. Future distributions are not subject to taxation.

Taxpayers will be taxed on the income of companies in which they have an interest in the year such income is recognized, regardless of whether actual distributions are made, with the corresponding credit.

Taxation in two stages

•    Company:	25% of accrued profits (using the maximum CIT applicable as of 2018).
•    Shareholder:	35% of accrued profits (whether or not distributions are received, with 100% credit of the CIT paid, resulting in an effective tax rate to the shareholder of 10%).

Total Tax Burden: 35%

Progressive CIT tax rate increase: 21% in 2014, 22.5% in 2015, 24% in 2016 and 25% as of 2017.

Advantages to accrued income tax basis:

• CIT Rate of 25% vs. 27% for the cash basis.

• Shareholders are granted 100% credit of taxes paid by a company.

Disadvantages to accrued income tax basis:

• Shareholders are taxed on undistributed profits.

• Shareholders of record must pay tax by December 31st (regardless of having received dividends).

• Complex management for companies.

b) Cash basis

A company pays CIT on its annual result. Foreign and local individual shareholders will only pay in Chile the relevant tax on effective profit distributions and will be allowed to use the tax paid by the distributing company as credit, with certain limitations. Only 65% of the CIT is creditable against the 35% shareholder-level tax (as opposed to 100% under the current FUT regime and under the accrued income basis). However, if there is a tax treaty in effect with Chile, the CIT is fully creditable against the 35% shareholder tax.

Taxation in two stages

•    Company:	27% of accrued profits (using the maximum CIT applicable from 2018 and forward).
•    Shareholder:	35% of cash disbursement (65% of CIT tax is creditable against the shareholder level tax, resulting in an effective tax rate to the shareholder of 17.5%. However, if the shareholder is a resident of a country with an effective tax treaty with Chile, CIT tax is fully creditable, resulting in an effective tax rate to the shareholder of 8%).

124

Total Tax Burden: 44.45% (35% for residents of countries with tax treaties)

Advantages to cash basis:

• Shareholders are only taxed on actual distributions.

• Shareholders must pay taxes only if they hold the share on the dividend distribution date.

Disadvantages to cash basis:

• CIT Rate of 27% versus 25% for the accrued income basis.

• Only shareholders residing in countries with a tax treaty are granted full CIT credit (others 65%).

Taxation on sale or exchange of ADSs, outside of Chile

Gains obtained by a foreign holder from the sale or exchange of ADSs outside Chile will not be subject to Chilean taxation.

Taxation on sale or exchange of Shares

The Chilean Income Tax Law includes a tax exemption on capital gains arising from the sale of shares of listed companies traded in the stock markets. Although there are certain restrictions, in general terms, the amendment provides that in order to qualify for the capital gain exemption: (i) the shares must be of a publicly held stock corporation with a certain minimum level of trading on a stock exchange; (ii) the sale must be carried out in a Chilean stock exchange, or in a tender offer subject to Chapter XXV of the Chilean Securities Market Law; (iii) the shares which are being sold must have been acquired on a Chilean stock exchange, or in a tender offer subject to Chapter XXV of the Chilean Securities Market Law, or in an initial public offering (due to the creation of a company or to a capital increase), or due to the exchange of convertible bonds; and (iv) the shares must have been acquired after April 19, 2001.

If the shares do not qualify for the above exemption, capital gains on their sale or exchange of shares (as distinguished from sales or exchanges of ADSs representing such shares of common stock) could be subject to two alternative tax regimes: (a) the general tax regime, with a 22.5% Chilean corporate income tax and a 35% Chilean withholding tax, the former being creditable against the latter; or (b) a 22.5% Chilean corporate income tax as sole tax regime, when all the following circumstances are met: (i) the sale is made between unrelated parties, (ii) the sale of shares is not a recurrent or habitual activity for the seller and (iii) at least one year has elapsed between the acquisition and the sale of the shares.

The date of acquisition of the ADSs is considered to be the date of acquisition of the shares for which the ADSs are exchanged.

Taxation of Rights and ADS Rights

For Chilean tax purposes and to the extent we issue any rights or ADS rights, the receipt of rights or ADS rights by a foreign holder of shares or ADSs pursuant to a rights offering is a nontaxable event. In addition, there are no Chilean income tax consequences to foreign holders upon the exercise or the lapse of the rights or the ADS rights.

Any gain on the sale, exchange or transfer of any ADS rights by a foreign holder is not subject to taxes in Chile.

Any gain on the sale, exchange or transfer of the rights by a foreign holder is subject to a 35% Chilean withholding tax.

Currently, there are no rights that are outstanding.

125

Other Chilean Taxes

There is no gift, inheritance or succession tax applicable to the ownership, transfer or disposition of ADSs by foreign holders, but such taxes will generally apply to the transfer at death or by gift of the shares by a foreign holder. There is no Chilean stamp, issue, registration or similar taxes or duties payable by holders of shares or ADSs.

Material U.S. Income Tax Considerations

This discussion is based on the Internal Revenue Code of 1986, as amended (the “Code”), administrative pronouncements, judicial decisions and final, temporary and proposed Treasury regulations, all as of the date hereof. These authorities are subject to change, possibly with retroactive effect. This discussion assumes that the depositary’s activities are clearly and appropriately defined so as to ensure that the tax treatment of ADSs will be identical to the tax treatment of the underlying shares.

The following are the material U.S. federal income tax consequences to U.S. Holders (as defined herein) of receiving, owning, and disposing of shares or ADSs, but it does not purport to be a comprehensive description of all of the tax considerations that may be relevant to a particular person’s decision to hold such securities and is based on the assumption stated above under “Chilean Tax Considerations” that there is no applicable income tax treaty in effect between the United States and Chile. The discussion applies only if the beneficial owner holds shares or ADSs as capital assets for U.S. federal income tax purposes and it does not describe all of the tax consequences that may be relevant in light of the beneficial owner’s particular circumstances. For instance, it does not describe all the tax consequences that may be relevant to:

• certain financial institutions;

• insurance companies;

• dealers and traders in securities who use a mark-to-market method of tax accounting;

• persons holding shares or ADSs as part of a “straddle” integrated transaction or similar transaction;

• persons whose functional currency for U.S. federal income tax purposes is not the U.S. dollar;

• partnerships or other entities classified as partnerships for U.S. federal income tax purposes;

• persons liable for the alternative minimum tax;

• tax-exempt organizations;

• persons holding shares or ADSs that own or are deemed to own ten percent or more of our stock; or

• persons holding shares or ADSs in connection with a trade or business conducted outside of the United States.

If an entity classified as a partnership for U.S. federal income tax purposes holds shares or ADSs, the U.S. federal income tax treatment of a partner will generally depend on the status of the partner and upon the activities of the partnership. Partnerships holding shares or ADSs and partners in such partnerships should consult their tax advisors as to the particular U.S. federal income tax consequences of holding and disposing of the shares or ADSs.

You will be a “U.S. Holder” for purposes of this discussion if you become a beneficial owner of our shares or ADSs and if you are, for U.S. federal income tax purposes:

• a citizen or individual resident of the United States; or

• a corporation, or other entity taxable as a corporation, created or organized in or under the laws of the United States or any political subdivision thereof; or

126

• an estate, the income of which is subject to U.S. federal income taxation regardless of its source; or

• a trust (i) that validly elects to be treated as a U.S. person for U.S. federal income tax purposes or (ii) if (A) a court within the United States is able to exercise primary supervision over the administration of the trust and (B) one or more U.S. persons have the authority to control all substantial decisions of the trust.

In general, if a beneficial owner owns ADSs, such owner will be treated as the owner of the shares represented by those ADSs for U.S. federal income tax purposes. Accordingly, no gain or loss will be recognized if a beneficial owner exchanges ADSs for the underlying shares represented by those ADSs.

The U.S. Treasury has expressed concerns that parties to whom ADSs are released before shares are delivered to the depositary (pre-release) or intermediaries in the chain of ownership between beneficial owners and the issuer of the security underlying the ADSs may be taking actions that are inconsistent with the claiming of foreign tax credits for beneficial owners of depositary shares. Such actions would also be inconsistent with the claiming of the reduced tax rate, described below, applicable to dividends received by certain non-corporate beneficial owners. Accordingly, the analysis of the creditability of Chilean taxes, and the availability of the reduced tax rate for dividends received by certain non-corporate holders, each described below, could be affected by actions taken by such parties or intermediaries.

This discussion assumes we will not be a passive foreign investment company, as described below.

Beneficial owners should consult their tax advisors with respect to their particular tax consequences of owning or disposing of shares or ADSs, including the applicability and effect of state, local, non-U.S. and other tax laws and the possibility of changes in tax laws.

Taxation of Distributions

The following discussion is based on the current regime for taxation of cash dividends and distributions applicable in Chile until 2016. For 2017 and later, the U.S. federal income tax treatment will depend on which of the two regimes we elect to adopt. See “— Chilean Tax Considerations — Taxation of shares and ADSs — Taxation of Cash Dividends and Property Distributions” above.

Distributions paid on shares or ADSs other than certain pro rata distributions of shares of common stock will be treated as dividends taxable as ordinary income to the extent paid out of our current or accumulated earnings and profits (as determined under U.S. federal income tax principles). Because we do not maintain calculations of our earnings and profits under U.S. federal income tax principles, it is expected that distributions generally will be reported as dividends.

If a beneficial owner is a U.S. Holder, subject to applicable limitations and the discussion above regarding concerns expressed by the U.S. Treasury, dividends paid by qualified foreign corporations to the beneficial owner that is not a corporation are taxable at a maximum rate of 20%. A foreign company is treated as a qualified foreign corporation with respect to dividends paid on stock that is readily tradable on an established securities market in the United States, such as the New York Stock Exchange where our ADSs are traded. Beneficial owners should consult their tax advisors to determine whether the favorable rate will apply to dividends they receive and whether they are subject to any special rules that limit their ability to be taxed at this favorable rate.

The amount of a dividend will include the net amount withheld by us in respect of Chilean withholding taxes on the distribution. The amount of the dividend will be treated as foreign-source dividend income to a beneficial owner and will not be eligible for the dividends-received deduction generally allowed to U.S. corporations under the Code. Dividends will be included in a beneficial owner’s income on the date of the beneficial owner’s, or in the case of ADSs, the Depositary’s receipt of the dividend. The amount of any dividend paid in Chilean pesos will be a U.S. dollar amount calculated by reference to the exchange rate for converting

127

Chilean pesos into U.S. dollars in effect on the date of such receipt regardless of whether the payment is in fact converted into U.S. dollars. If the dividend is converted into U.S. dollars on the date of receipt, a beneficial owner generally should not be required to recognize foreign currency gain or loss in respect of the dividend income. A beneficial owner may have foreign currency gain or loss if the dividend is converted into U.S. dollars on a date after the date of receipt.

Subject to applicable limitations that may vary depending upon a beneficial owner’s circumstances and subject to the discussion above regarding concerns expressed by the U.S. Treasury, the net amount of Chilean withholding tax (after reduction for the credit for Chilean corporate income tax, as discussed above under

“— Chilean Tax Considerations — Taxation of Shares and ADSs — Taxation of Cash Dividends and Property Distributions” above) withheld from dividends on shares or ADSs will be creditable against a beneficial owner’s U.S. federal income tax liability. The rules governing foreign tax credits are complex and, therefore, a beneficial owner should consult the beneficial owner’s tax advisor regarding the availability of foreign tax credits in the beneficial owner’s particular circumstances. Instead of claiming a credit, a beneficial owner may, at the beneficial owner’s election, deduct such Chilean taxes in computing the beneficial owner’s taxable income, subject to generally applicable limitations under U.S. law. An election to deduct foreign taxes instead of claiming foreign tax credits applies to all taxes paid or accrued in the taxable year to foreign countries and possessions of the United States.

Sale or Other Disposition of Shares or ADSs

If a beneficial owner is a U.S. Holder, for U.S. federal income tax purposes, the gain or loss a beneficial owner realizes on the sale or other disposition of shares or ADSs will be a capital gain or loss, and will be a long-term capital gain or loss if the beneficial holder has held the shares or ADSs for more than one year. The amount of a beneficial owner’s gain or loss will equal the difference between the beneficial owner’s tax basis in the shares or ADSs disposed of and the amount realized on the disposition, in each case as determined in U.S. dollars. Such gain or loss will generally be U.S.-source gain or loss for foreign tax credit purposes. In addition, certain limitations exist on the deductibility of capital losses by both corporate and individual taxpayers.

In certain circumstances, Chilean taxes may be imposed upon the sale of shares. See “— Chilean Tax Considerations — Taxation of Shares and ADSs.” If a Chilean tax is imposed on the sale or disposition of shares, and a beneficial owner that is a U.S. Holder does not receive significant foreign source income from other sources, such beneficial owner may not be able to credit such Chilean tax against the beneficial owner’s U.S. federal income tax liability.

Passive Foreign Investment Company Rules

We believe that we will not be a “passive foreign investment company” (“PFIC”) for U.S. federal income tax purposes for our 2016 taxable year or for the foreseeable future. However, because PFIC status depends upon the composition of a company’s income and assets and the market value of its assets from time to time, and because it is unclear whether certain types of our income constitute passive income for PFIC purposes, there can be no assurance that we will not be considered a PFIC for any taxable year. If we were to become a PFIC for any taxable year during which a beneficial owner held shares or ADSs, certain adverse consequences could apply to the beneficial owner, including the imposition of higher amounts of tax than would otherwise apply, and additional filing requirements. Beneficial owners should consult their tax advisors regarding the consequences to them if we were a PFIC, as well as the availability and advisability of making any election that might mitigate the adverse consequences of PFIC status.

Information Reporting and Backup Withholding

Payments of dividends and sales proceeds that are made within the United States or through certain U.S.-related financial intermediaries generally are subject to information reporting and to backup withholding unless

128

(i) the beneficial owner is an exempt recipient or (ii) in the case of backup withholding, the beneficial owner provides a correct taxpayer identification number and certifies that the beneficial owner is not subject to backup withholding.

The amount of any backup withholding from a payment to a beneficial owner will be allowed as a credit against the beneficial owner’s U.S. federal income tax liability and may entitle the beneficial owner to a refund, provided that the required information is furnished in a timely fashion to the Internal Revenue Service.

Medicare Contribution Tax

Legislation enacted in 2010 generally imposes a tax of 3.8% on the “net investment income” of certain individuals, trusts and estates. Among other items, net investment income generally includes gross income from dividends and net gain attributable to the disposition of certain property, like the shares or ADSs, less certain deductions. A beneficial owner should consult the beneficial owner’s tax advisor regarding the possible application of this legislation in the beneficial owner’s particular circumstances.

Beneficial owners should consult their tax advisors with respect to the particular consequences to them of receiving, owning or disposing of shares or ADSs.

F. Dividends and Paying Agents.

The paying agent for shareholders is expected to be DCV. The paying agent for holders of Enersis Chile ADRs listed on the NYSE is expected to be Citibank N.A.

G. Statement by Experts.

EY Ltda., a Member of Ernst & Young Global Limited, independent registered public accounting firm, as set forth in their reports thereon, included therein, and incorporated herein, has audited both the interim combined financial statements of Enersis Chile as of September 30, 2015 and for the nine-month period then ended, and the combined financial statements of Enersis Chile as of December 31, 2014, 2013 and January 1, 2013, and for the years ended December 31, 2014 and 2013.

The interim combined financial statements and the combined financial statements referred to above, both appearing in this registration statement, are included in reliance upon such reports given on the authority of such firms as experts in accounting and auditing.

H. Documents on Display.

We will be subject to the information requirements of the Exchange Act, except that as a foreign issuer, we are not subject to SEC proxy rules (other than general anti-fraud rules) or the short-swing profit disclosure rules of the Exchange Act. In accordance with these statutory requirements, we will file or furnish reports and other information with the SEC. Reports and other information that we will file or furnish with the SEC may be inspected and copied at the public reference facilities maintained by the SEC at Room 1024, 100 F Street, N.E., Washington, D.C. 20549. Copies of such material may also be inspected at the offices of the New York Stock Exchange, at 11 Wall Street, New York, New York 10005, on which our ADSs are expected to be listed. In addition, the SEC maintains a website that contains electronically filed information, which can be accessed at http://www.sec.gov.

I. Combined Entity Information.

Not applicable.

129

Item 11. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to risks arising from changes in commodity prices, interest rates and foreign exchange rates. Enersis’ Board of Directors approves risk management policies at all levels and the Board of Directors of Enersis Chile will continue to do so with respect to the Chilean Business after the Spin-Off.

Commodity Price Risk

In our electricity generation business, we are exposed to market risks arising from the price volatility of electricity, natural gas, diesel oil, and coal. Natural gas is used in some of our power plants. We seek to ensure our fuel supply by securing long-term contracts with our suppliers for periods that are expected to match the lifetime of our generation assets. These contracts generally have provisions that allow us to purchase natural gas with a pricing formula that combines Henry Hub natural gas and Brent diesel oil at market prices prevailing at the time the purchase occurs. As of September 30, 2015 and 2014, and December 31, 2014 and 2013, we did not hold contracts classified as derivative financial instruments or financial instruments related to natural gas. However, during 2015 and 2014, we entered into contracts classified as derivative commodity instruments related to natural gas for the period between January and September 2015 (10.3 million of MMBTU and 1.69 million barrels of Brent diesel oil) and for the period between January and December 2014 (17.1 million MMBTU and 3.3 million barrels of Brent diesel oil). As of December 31, 2014, we held contracts classified as a derivative commodity instruments related to natural gas (350,000 MMBTU and 266,000 barrels of Brent diesel oil).

In our power plants which use coal or diesel oil, the dispatch mechanism allows the thermal power plants to cover their operational costs. However, under certain circumstances, fuel price fluctuations might affect marginal costs. Due to the continuing drought in Chile and the price volatility of coal and petroleum, we hedged this risk with commodity instruments available in the international markets. As of September 30, 2015 and 2014, and December 31, 2014 and 2013, we did not hold any contracts classified as either derivative financial instruments or financial instruments related either to coal or petroleum-based liquid fuel. However, during 2015, we entered into contracts classified as derivative commodity instruments related to coal, for the period between January and September 2015 (65,000 tons of type API2 coal).

Additionally, through adequate commercial risk mitigation policies, and a hydro-thermal power plant mix, we seek to protect our operating income from electricity price volatility. As of September 30, 2015 and December 31, 2014, we did not hold electricity price-sensitive instruments.

We are continually analyzing ways to hedge commodity price risk, like transferring commodity price variations to the customer’s contract prices and permanently adjusting the commodity indexed price formulas for new Power Purchase Agreements (“PPAs”) according to our exposure and/or analyzing ways to mitigate risk through hydrological insurance in dry years. In the future we may use price-sensitive instruments.

130

Interest Rate and Foreign Currency Risk

The recorded values of our debt as of September 30, 2015, are detailed below, according to maturity. Total values do not include the effect of derivatives.

	Expected maturity date
For the year ended December 31,	2015			2016			2017			2018			2019			Thereafter			Total			Fair Value(2)
	(in millions of Ch$)(1)
Fixed Rate
Ch$/UF		0.61			—			—			—			—			—			0.61			0.61
Weighted average interest rate		6.7	%		—			—			—			—			—			6.7	%		—
US$		1,005			1,804			1,921			2,046			2,179			513,416			522,370			606,155
Weighted average interest rate		5.7	%		5.4	%		5.4	%		5.4	%		5.4	%		5.8	%		5.8	%		—
Total fixed rate		1,006			1,804			1,921			2,046			2,179			513,416			522,370			606,156
Weighted average interest rate		5.7	%		5.4	%		5.4	%		5.4	%		5.4	%		5.8	%		5.8	%		—
Variable Rate
Ch$/UF		2,636			5,272			5,272			5,272			28,315			279,092			325,860			413,078
Weighted average interest rate		10.4	%		10.4	%		10.4	%		10.4	%		7.6	%		7.6	%		7.8	%		—
US$		—			—			—			—			—			—			—			—
Weighted average interest rate		—			—			—			—			—			—			—			—
Total variable rate		2,636			5,272			5,272			5,272			28,315			279,092			325,860			413,078
Weighted average interest rate		10.4	%		10.4	%		10.4	%		10.4	%		7.6	%		7.6	%		7.8	%		—
Total		3,642			7,076			7,193			7,318			30,493			792,509			848,230			1,019,234

(1) Calculated based on the Observed Exchange Rate as of September 30, 2015, which was Ch$ 698.72 per US$ 1.00.

(2) As of September 30, 2015, fair value was calculated based on the discounted value of future cash flows expected to be paid (or received), considering current discount rates that reflect the different risks involved.

131

The recorded values of our debt as of September 30, 2014, are detailed below, according to maturity. Total values do not include the effect of derivatives.

	Expected maturity date
For the year ended December 31,	2014			2015			2016			2017			2018			Thereafter			Total			Fair Value(2)
	(in millions of Ch$)(1)
Fixed Rate
Ch$/UF		1.31			—			—			—			—			—			1.31			1.31
Weighted average interest rate		4.6	%		—			—			—			—			—			4.6	%		—
US$		839			122,277			1,547			1,647			1,754			442,172			570,237			683,201
Weighted average interest rate		6.2	%		8.4	%		6.2	%		6.2	%		6.2	%		5.8	%		6.4	%		—
Total fixed rate		841			122,277			1,547			1,647			1,754			442,172			570,238			683,202
Weighted average interest rate		6.2	%		8.4	%		6.2	%		6.2	%		6.2	%		5.8	%		6.4	%		—
Variable Rate
Ch$/UF		5,305			8,042			6,656			5,027			5,027			293,110			323,167			408,693
Weighted average interest rate		11.9	%		11.7	%		11.5	%		11.1	%		11.1	%		8.9	%		10.0	%		—
US$		—			—			—			—			—			—			—			—
Weighted average interest rate		—			—			—			—			—			—			—			—
Total variable rate		5,305			8,042			6,656			5,027			5,027			293,110			323,167			408,693
Weighted average interest rate		11.9	%		11.7	%		11.5	%		11.1	%		11.1	%		8.9	%		10.0	%		—
Total		6,146			130,319			8,203			6,674			6,781			735,282			893,405			1,091,895

(1) Calculated based on the Observed Exchange Rate as of September 30, 2014, which was Ch$ 599.22 per US$ 1.00.

(2) As of September 30, 2014, fair value was calculated based on the discounted value of future cash flows expected to be paid (or received), considering current discount rates that reflect the different risks involved.

132

The recorded values of our debt as of December 31, 2014, are detailed below, according to maturity. Total values do not include the effect of derivatives.

	Expected maturity date
For the year ended December 31,	2015			2016			2017			2018			2019			Thereafter			Total			Fair Value(2)
	(in millions of Ch$)(1)
Fixed Rate
Ch$/UF		0.71			—			—			—			—			—			0.71			0.71
Weighted average interest rate		1.3	%		—			—			—			—			—			1.3	%		—
US$		123,813			1,566			1,668			1,776			1,892			445,837			576,553			685,462
Weighted average interest rate		8.7	%		6.2	%		6.2	%		6.2	%		6.2	%		5.9	%		6.5	%		—
Total fixed rate		123,814			1,566			1,668			1,776			1,892			445,837			576,553			685,463
Weighted average interest rate		8.7	%		6.2	%		6.2	%		6.2	%		6.2	%		5.9	%		6.5	%		—
Variable Rate
Ch$/UF		5,122			5,122			5,122			5,122			16,317			282,361			319,167			424,956
Weighted average interest rate		11.9	%		11.9	%		11.9	%		11.9	%		10.6	%		10.4	%		10.5	%		—
US$		—			—			—			—			—			—			—			—
Weighted average interest rate		—			—			—			—			—			—			—			—
Total variable rate		5,122			5,122			5,122			5,122			16,317			282,361			319,167			424,956
Weighted average interest rate		11.9	%		11.9	%		11.9	%		11.9	%		10.6	%		10.4	%		10.5	%		—
Total		128,936			6,689			6,790			6,899			18,208			728,198			895,721			1,110,419

(1) Calculated based on the Observed Exchange Rate as of December 31, 2014, which was Ch$ 606.75 per US$ 1.00.

(2) As of December 31, 2014, fair value was calculated based on the discounted value of future cash flows expected to be paid (or received), considering current discount rates that reflect the different risks involved.

133

The recorded values of our debt as of December 31, 2013, are detailed below, according to maturity. Total values do not include the effect of derivatives.

	Expected maturity date
For the year ended December 31,	2014			2015			2016			2017			2018			Thereafter			Total			Fair Value(2)
	(in millions of Ch$)(1)
Fixed Rate
Ch$/UF		0.11			—			—			—			—			—			0.11			0.11
Weighted average interest rate		6.8	%		—			—			—			—			—			6.8	%		—
US$		2,052			107,052			1,354			1,442			1,536			177,273			290,709			358,571
Weighted average interest rate		6.6	%		8.9	%		6.5	%		6.5	%		6.5	%		8.0	%		8.3	%		—
Total fixed rate		2,052			107,052			1,354			1,442			1,536			177,273			290,709			358,571
Weighted average interest rate		6.6	%		8.9	%		6.5	%		6.5	%		6.5	%		8.0	%		8.3	%		—
Variable Rate
Ch$/UF		7,541			7,756			6,420			4,848			4,848			282,698			314,112			390,790
Weighted average interest rate		10.1	%		10.2	%		9.5	%		8.3	%		8.3	%		7.0	%		7.2	%		—
US$		105,673			—			—			—			—			—			105,673			105,673
Weighted average interest rate		1.7	%		—			—			—			—			—			1.7	%		—
Total variable rate		113,214			7,756			6,420			4,848			4,848			282,698			419,785			496,463
Weighted average interest rate		2.2	%		10.2	%		9.5	%		8.3	%		8.3	%		7.0	%		5.8	%		—
Total		115,266			114,808			7,774			6,291			6,384			459,971			710,494			855,034

(1) Calculated based on the Observed Exchange Rate as of December 31, 2013, which was Ch$ 524.61 per US$ 1.00.

(2) As of December 31, 2013, fair value was calculated based on the discounted value of future cash flows expected to be paid (or received), considering current discount rates that reflect the different risks involved.

Interest Rate Risk

At September 30, 2015 and 2014, 25% and 23%, respectively, of our outstanding net debt obligations were subject to variable interest rates.

At December 31, 2014 and 2013, 20% and 40%, respectively, of our outstanding net debt obligations were subject to variable interest rates.

We manage interest rate risk by maintaining a mixture of both variable and fixed rate debt, according to a policy that will be approved by our Board of Directors after the completion of the Spin-Sff. Additionally, we manage interest rate risk through the use of interest rate derivatives.

As of September 30, 2015, 2014 and December 31, 2014 we did not hold derivatives to hedge our interest rate risk.

134

As of December 31, 2013, the recorded values for financial accounting purposes and the corresponding fair value of the instruments that hedge our interest rate risk exposure were as follows:

	Expected Maturity Date
For the year ended December 31,	2014			2015		2016		2017		2018		Thereafter		Total		Fair Value(2)
	(in millions of Ch$)(1)
Variable to fixed rates		104,922			—		—		—		—		—		104,922		(1,197	)
Fixed to variable rates		—			—		—		—		—		—		—		—
Total		104,922	��		—		—		—		—		—		104,922		(1,197	)

(1) Calculated based on the Observed Exchange Rate as of December 31, 2013, which was Ch$ 524.61 per US$ 1.00.

(2) Fair values were calculated based on the discounted value of future cash flows expected to be paid (or received), considering current discount rates that reflect the different risks involved.

Foreign Currency Risk

Our corporate currency risk policy will be approved by our Board of Directors, after the completion of the Spin-Off. This policy will seek to hedge cash flows of each company that is indexed to the U.S. dollar with liabilities in the same currency.

We are exposed to foreign currency risk arising from debt denominated in U.S. dollars. Some of our combined entities have a natural hedge between their revenues and the currency of their debt. In some other cases, we do not have this natural hedge, and therefore, we try to manage this exposure with currency derivatives, such as U.S. dollar/UF exchange and U.S. dollar/Chilean peso derivatives. However, this could not always be possible due to market conditions.

As of September 30, 2015, the recorded values for financial accounting purposes and the corresponding fair value of the instruments that hedge our foreign exchange risk were as follows:

	Expected Maturity Date
For the year ended December 31,	2015		2016		2017		2018		2019		Thereafter		Total		Fair Value(2)
	(in millions of Ch$)(1)
UF to US$		—		—		—		—		536,243		—		536,243		(61,418	)
US$ to Ch$/UF		—		—		—		—		—		—		—		—
Ch$ to US$		—		—		—		—		—		—		—		—
Total		—		—		—		—		536,243		—		536,243		(61,418	)

(1) Calculated based on the Observed Exchange Rate as of September 30, 2015, which was Ch$ 698.72 per US$ 1.00.

(2) Fair values were calculated based on the discounted value of future cash flows expected to be paid (or received), considering current discount rates that reflect the different risks involved.

135

By comparison, as of September 30, 2014, the recorded values for financial accounting purposes and the corresponding fair value of the instruments that hedge our foreign exchange risk were as follows:

	Expected Maturity Date
For the year ended December 31,	2014		2015		2016		2017		2018		Thereafter		Total		Fair Value(2)
	(in millions of Ch$)(1)
UF to US$		237,079		—		—		—		—		257,219		494,298		(3,894	)
US$ to Ch$/UF		—		—		—		—		—		—		—		—
Ch$ to US$		—		—		—		—		—		—		—		—
Total		237,079		—		—		—		—		257,219		494,298		(3,894	)

(1) Calculated based on the Observed Exchange Rate as of September 30, 2014, which was Ch$ 599.22 per US$ 1.00.

(2) Fair values were calculated based on the discounted value of future cash flows expected to be paid (or received), considering current discount rates that reflect the different risks involved.

As of December 31, 2014, the recorded values for financial accounting purposes and the corresponding fair value of the instruments that hedge our foreign exchange risk were as follows:

	Expected Maturity Date
For the year ended December 31,	2015		2016		2017		2018		2019		Thereafter		Total		Fair Value(2)
	(in millions of Ch$)(1)
UF to US$		—		—		—		—		260,451		—		260,451		(24,639	)
US$ to Ch$/UF		—		—		—		—		—		—		—		—
Ch$ to US$		—		—		—		—		—		—		—		—
Total		—		—		—		—		260,451		—		260,451		(24,639	)

(1) Calculated based on the Observed Exchange Rate as of December 31, 2014, which was Ch$ 606.75 per US$ 1.00.

(2) Fair values were calculated based on the discounted value of future cash flows expected to be paid (or received), considering current discount rates that reflect the different risks involved.

By comparison, as of December 31, 2013 the recorded values for financial accounting purposes and the corresponding fair value of the instruments that hedge for our interest rate risk were as follows:

	Expected Maturity Date
For the year ended December 31,	2014		2015		2016		2017		2018		Thereafter		Total		Fair Value(2)
	(in millions of Ch$)(1)
UF to US$		—		—		—		—		—		—		—		—
US$ to Ch$/UF		—		—		—		—		—		—		—		—
Ch$ to US$		207,560		—		—		—		—		—		207,560		20,865
Total		207,560		—		—		—		—		—		207,560		20,865

(1) Calculated based on the Observed Exchange Rate as of December 31, 2013, which was Ch$ 524.61 per US$ 1.00.

(2) Fair values were calculated based on the discounted value of future cash flows expected to be paid (or received), considering current discount rates that reflect the different risks involved.

136

(d) Safe Harbor

The information in this “Item 11. Quantitative and Qualitative Disclosures About Market Risk,” contains information that may constitute forward-looking statements. See “Forward-Looking Statements” in the Introduction of this information statement for safe harbor provisions.

Item 12. Description of Securities Other Than Equity Securities

A. Debt Securities.

Not applicable.

B. Warrants and Rights.

Not applicable.

C. Other Securities.

Not applicable.

D. American Depositary Shares.

Enersis Chile is expected to appoint Citibank, N.A. as depositary pursuant to a deposit agreement (“Deposit Agreement”). Citibank, N.A.’s depositary offices are located at 388 Greenwich Street, New York, New York 10013. The terms and provisions of the Deposit Agreement are expected to be substantially the same as the Deposit Agreement entered into by Enersis for its ADR program. Upon the execution of the Deposit Agreement, Enersis Chile will file the Deposit Agreement with the SEC and a copy of the Deposit Agreement will be obtainable from the SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549 and from the SEC’s website (www.sec.gov). The depositary typically appoints a custodian to safekeep the securities on deposit. In the case of Enersis Chile, the custodian is expected to be Banco Santander (Chile), located at Bandera 140, Santiago, Chile.

The following is a summary description of the material terms of the Deposit Agreement to be entered into by Enersis Chile and the Enersis Chile ADSs to be issued thereunder. This summary is based on the terms of the Deposit Agreement expected to be entered into by Enersis Chile and the actual terms of the Deposit Agreement by Enersis Chile may be different. Please remember that summaries by their nature lack the precision of the information summarized and that rights and obligations as an owner of Enersis Chile ADSs will be determined by reference to the terms of the Deposit Agreement and not by this summary.

Each Enersis Chile ADS will represent 50 shares of common stock of Enersis Chile on deposit with the custodian. An ADS will also represent any other property received by the depositary or the custodian on behalf of the owner of the ADS but that has not been distributed to the owners of ADSs because of legal restrictions or practical considerations.

If you become an owner of ADSs, you will become a party to the Deposit Agreement and therefore will be bound to its terms and to the terms of the ADR that represents your ADSs. The Deposit Agreement and the ADR will specify the rights and obligations of Enersis Chile as well as your rights and obligations as owner of ADSs and those of the depositary. As an ADS holder you will be appointing the depositary to act on your behalf in certain circumstances. The Deposit Agreement and the ADRs will be governed by New York law. However, Enersis Chile’s obligations to the holders of shares of Enersis Chile common stock will continue to be governed by the laws of Chile, which are different from New York law.

As an owner of ADSs, you may hold your ADSs either by means of an ADR registered in your name, through a brokerage or safekeeping account, or through an account established by the depositary in your name

137

reflecting the registration of uncertificated ADSs directly on the books of the depositary (commonly referred to as the “direct registration system” or “DRS”). The direct registration system reflects the uncertificated (book-entry) registration of ownership of ADSs by the depositary. Under the direct registration system, ownership of ADSs is evidenced by periodic statements issued by the depositary to the holders of the ADSs. The direct registration system includes automated transfers between the depositary and the Depository Trust Company, or DTC, the central book-entry clearing and settlement system for equity securities in the United States. If you decide to hold your ADSs through your brokerage or safekeeping account, you must rely on the procedures of your broker or bank to assert your rights as an ADS owner. Banks and brokers typically hold securities such as the ADSs through clearing and settlement systems such as DTC. The procedures of such clearing and settlement systems may limit your ability to exercise your rights as an owner of ADSs. All ADSs held through DTC will be registered in the name of a nominee of DTC. This summary description assumes you have opted to own the ADSs directly by means of an ADR registered in your name and, as such, we will refer to you as the “holder.” When we refer to “you,” we assume the reader owns ADSs and will own ADSs at the relevant time.

Dividends and Distributions

As a holder, you will generally have the right to receive the distributions made by Enersis Chile on the securities deposited with the custodian. Your receipt of these distributions may be limited, however, by practical considerations and legal limitations. Holders will receive such distributions under the terms of the Deposit Agreement in proportion to the number of ADSs held as of a specified record date.

Distributions of Cash

Upon receipt by the custodian of a cash distribution for the securities on deposit, the depositary will arrange for the funds to be converted into U.S. dollars and for the distribution of the U.S. dollars to the holders. The conversion into U.S. dollars will take place only if reasonable, in the judgment of the depositary, if the U.S. dollars are transferable to the United States and if permitted by Chilean law and regulations and, if in effect, the foreign exchange agreements among the Central Bank of Chile, the depositary and Enersis Chile. The amounts distributed to holders will be net of the fees, expenses, taxes and governmental charges payable by holders under the terms of the Deposit Agreement. The depositary will apply the same method for distributing the proceeds of the sale of any property, such as undistributed rights, held by the custodian in respect of securities on deposit.

Distributions of Shares

Upon receipt of a dividend or free distribution of shares, the depositary may and will, at the request of Enersis Chile, distribute to holders, in proportion to the number of ADSs held, new ADSs representing the shares of common stock deposited. Only whole new ADSs will be distributed. Fractional entitlements will be sold and the proceeds of such sale will be distributed as in the case of a cash distribution.

The distribution of new ADSs upon a distribution of shares of common stock will be made net of the fees, expenses, taxes and governmental charges payable by holders under the terms of the Deposit Agreement. In order to pay such taxes or governmental charges, the depositary may sell all or a portion of the new shares of common stock so distributed.

No such distribution of new ADSs will be made if it would violate a law, including the U.S. securities laws. If the depositary does not distribute new ADSs as described above, it will sell the shares of common stock received and will distribute the proceeds of the sale as in the case of a distribution of cash.

138

Distributions of Rights

If Enersis Chile offers to its holders of shares rights to purchase additional ADSs, the depositary will have discretion as to the procedures to follow in making such rights available to the holders of ADSs or selling such rights on behalf of holders and making the net proceeds available in U.S. dollars to such holders. If requested by Enersis Chile, the depositary will take the following actions:

• If at the time of the offering the depositary determines that it is lawful and feasible to make such rights available to holders, the depositary will distribute such rights to holders in proportion to the number of ADSs held, or the depositary will employ such other method as it may deem feasible in order to facilitate the exercise, sale or transfer of rights by such holders;

• If at the time of the offering the depositary determines that it is not lawful or not feasible to make such rights available to holders, or if the rights are not exercised and appear about to lapse, the depositary in its discretion may sell such rights at public or private sale, and may allocate the net proceeds of any such sale, upon an averaged or other practicable basis; or

• If by the terms of the offering or for any other reason the depositary cannot make those rights available to the holders, then the depositary may allow those rights to lapse.

If the distribution of rights requires the rights to be registered under the Securities Act, the depositary will not distribute such rights unless and until such registration statement is in effect, or unless the transaction is exempt from registration under the provisions of the Securities Act.

If the depositary has distributed the rights to holders of ADSs, the depositary will exercise such rights on behalf of the holders upon receipt of the following:

• payment of the purchase price for the share to be purchased upon the exercise of the right;

• a duly completed and signed exercise instruction; and

• payment of the applicable fee and charges.

The depositary will sell the rights that are not exercised or not distributed if such sale is lawful. The proceeds of such sale will be distributed to holders as in the case of a cash distribution. If the depositary is unable to sell the rights, it will allow the rights to lapse.

Elective Distributions

Whenever Enersis Chile intends to distribute a dividend payable at the election of shareholders either in cash or in additional shares, Enersis Chile will give prior notice thereof to the depositary and will indicate whether Enersis Chile wishes the elective distribution to be made available to you. In such case, Enersis Chile will assist the depositary in determining whether such distribution is lawful and reasonably practicable.

The depositary will make the election available to you only if it is reasonably practicable and if Enersis Chile provides all of the documentation contemplated in the Deposit Agreement. In such case, the depositary will establish procedures to enable you to elect to receive either cash or additional ADSs, in each case as described in the Deposit Agreement.

If the election is not made available to you, you will receive either cash or additional ADSs, depending on what a shareholder in Chile would receive upon failing to make an election, as more fully described in the Deposit Agreement.

Other Distributions

Whenever Enersis Chile distributes property other than cash, shares of common stock or rights to purchase additional shares of Enersis Chile common stock, the depositary will consult with Enersis Chile to the extent

139

practicable and distribute such property to holders of ADSs in proportion to the number of ADSs held, in any manner that the depositary, with consent of Enersis Chile, deems equitable and practicable for accomplishing the distribution.

If the depositary determines that such distribution cannot be made proportionately among the holders of ADRs, or for any other reason the depositary deems such distribution not to be reasonably practicable, the depositary may, with our approval, adopt such distribution method, including a sale, as it deems equitable and practicable.

If the depositary sells such property, the net proceeds of such sale will be distributed to holders as in the case of a cash distribution, net of fees, expenses, taxes or governmental charges payable by holders under the Deposit Agreement.

The proceeds of such a sale will be distributed to holders as in the case of a cash distribution.

Changes Affecting Shares of Common Stock

The shares of common stock held on deposit for ADSs may change from time to time. For example, there may be a change in nominal or par value, a split-up, cancellation, consolidation or classification of such shares of common stock or a recapitalization, reorganization, merger, consolidation or sale of assets.

If any such change were to occur, your ADSs would, to the extent permitted by law, represent the right to receive the property received or exchanged in respect of the shares of common stock held on deposit. The depositary may, with our approval, or at the request of Enersis Chile, in such circumstances deliver new ADSs to you or call for the exchange of your existing ADSs for new ADSs. If the depositary may not lawfully distribute such property to you, the depositary may sell such property and distribute the net proceeds to you as in the case of a cash distribution.

Redemption

To the extent permitted by applicable law, whenever Enersis Chile decides to redeem any of the securities on deposit with the custodian, Enersis Chile will notify the depositary in advance. If it is practicable and if Enersis Chile provides all of the documentation contemplated in the Deposit Agreement, the depositary will provide notice of the redemption to the holders of ADSs.

The custodian will be instructed to surrender the shares being redeemed against payment of the applicable redemption price. The depositary will convert the redemption funds received into U.S. dollars upon the terms of the Deposit Agreement and will establish procedures to enable holders of ADSs to receive the net proceeds from the redemption upon surrender of their ADSs to the depositary. You may have to pay fees, expenses, taxes and other governmental charges upon the redemption of your ADSs. If less than all ADSs are being redeemed, the ADSs to be retired will be selected by lot or on a pro rata basis, as the depositary may determine.

Issuance of ADSs Upon Deposit of Shares of Common Stock

The depositary may create ADSs on your behalf if you or your broker deposits shares of common stock with the custodian. The depositary will deliver these ADSs to the person you indicate only after you pay any applicable issuance fees and any charges and taxes payable for the transfer of the shares of common stock to the custodian.

The issuance of ADSs may be delayed until the depositary or the custodian receives confirmation that all required approvals have been given and that the shares of common stock have been duly transferred to the custodian. The depositary will only issue ADSs in whole numbers.

140

When you make a deposit of shares of common stock, you will be responsible for transferring good and valid title to the depositary. As such, you will be deemed to represent and warrant that:

• The shares are duly authorized, validly issued, fully paid, non assessable and legally obtained.

• All preemptive (and similar) rights, if any, with respect to such shares have been validly waived or exercised.

• You are duly authorized to deposit the shares.

• The shares presented for deposit are free and clear of any lien, encumbrance, security interest, charge, mortgage or adverse claim, and are not, and the ADSs issuable upon such deposit will not be, “restricted securities” (as defined in the Deposit Agreement).

• The shares presented for deposit have not been stripped of any rights or entitlements.

If any of the representations or warranties is incorrect in any way, Enersis Chile and the depositary may, at your cost and expense, take any and all actions necessary to attempt to correct the consequences of the misrepresentations.

Transfer, Combination and Split Up of ADRs

As an ADR holder, you will be entitled to transfer, combine or split up your ADRs and the ADSs evidenced thereby. For transfers of ADRs, you will have to surrender the ADRs to be transferred to the depositary and also must:

• duly deliver the ADRs to the depositary at its principal office, and

• ensure that the surrendered ADR certificate is properly endorsed or otherwise in proper form for transfer.

Withdrawal of Shares Upon Cancellation of ADSs

As a holder, you will be entitled to present your ADSs to the depositary for cancellation and then receive the underlying shares of common stock at the custodian’s offices. In order to withdraw the shares of common stock represented by your ADSs, you will be required to pay to the depositary the fees for cancellation of ADSs and any charges and taxes payable upon the transfer of the shares of common stock being withdrawn. You assume the risk for delivery of all funds and securities upon withdrawal. Once canceled, the ADSs will not have any rights under the Deposit Agreement.

If you hold an ADS registered in your name, the depositary may ask you to provide proof of identity and genuineness of any signature and certain other documents as the depositary may deem appropriate before it will cancel your ADSs. The withdrawal of the shares of common stock represented by your ADSs may be delayed until the depositary receives satisfactory evidence of compliance with all applicable laws and regulations. Please keep in mind that the depositary will only accept ADSs for cancellation that represent a whole number of securities on deposit.

You will have the right to withdraw the securities represented by your ADSs at any time except for:

• Temporary delays that are caused by clearing of the transfer books for the shares of common stock or the ADSs or the payment of dividends.

• Obligations to pay fees, taxes and similar charges.

• Restrictions imposed due to laws or regulations applicable to ADSs or the withdrawal of deposited securities.

The Deposit Agreement may not be modified to impair your right to withdraw the securities represented by your ADSs except to comply with mandatory provisions of law.

141

Voting Rights

As a holder, you will generally have the right under the Deposit Agreement to instruct the depositary to exercise the voting rights for the shares of common stock represented by your ADSs. The voting rights of holders of shares of common stock are described in “Item 10. Additional Information—B. Memorandum and Articles of Association—Description of Share Capital—Shareholders’ Meetings and Voting Rights.”

The depositary will mail to you any notice of a shareholders’ meeting received from Enersis Chile together with information explaining how to instruct the depositary to exercise the voting rights of the securities represented by ADSs.

If the depositary timely receives voting instructions from a holder of ADSs, it will endeavor insofar as practicable to vote the securities represented by the holder’s ADSs in accordance with such voting instructions.

Please note that the ability of the depositary to carry out voting instructions may be limited by practical and legal limitations and the terms of the securities on deposit. There will be no assurance that you will receive voting materials in time to enable you to return voting instructions to the depositary in a timely manner.

If the depositary does not receive your voting instructions in a timely manner you will nevertheless be treated as having instructed the depositary to give a discretionary proxy with full power of substitution to our Chairman of the Board or to a person designated by him to vote the shares represented by your ADSs in his/her discretion. The depositary will deliver such discretionary proxy to vote on any matter other than:

• substantial opposition exists by holders of ADSs, it being understood that an election of directors at an annual or extraordinary meeting of shareholders is not a contested matter involving substantial opposition;

• matters that materially and adversely affect the rights of holders of ADSs;

• any matter as to which the Chairman of the Board directs the depositary that he or she does not wish such proxy to be given.

Fees and Charges

The holders of Enersis Chile ADSs are expected to be required to pay the following fees of the depositary.

Service Fees	Fees
Issuance of ADS upon deposit of shares	Up to US$[●] per 100 ADS (or fraction thereof) issued.
Delivery of deposited securities against surrender of ADS	Up to US$[●] per 100 ADS (or fraction thereof) surrendered.
Distribution of cash dividends or other cash distributions (i.e., sale of rights and other entitlements)	Up to US$[●] per 100 ADS (or fraction thereof) held.
Distribution of ADS pursuant to (i) stock dividends or other free stock distributions, or (ii) exercise of rights to purchase additional ADS	Up to US$[●] per 100 ADS (or fraction thereof) held.
Distribution of securities other than ADS or rights to purchase additional ADS (i.e., spin-off of shares)	Up to US$[●] per 100 ADS (or fraction thereof) held.
Depositary services	Up to US$[●] per 100 ADS (or fraction thereof) held on the applicable record date(s) established by the depositary.

142

As an ADS holder you will also be responsible to pay certain fees and expenses incurred by the depositary and certain taxes and governmental charges such as:

• Fees for the transfer, exchange or registration of shares of common stock, such as upon deposit and withdrawal of shares of common stock.

• Expenses incurred for converting foreign currency into U.S. dollars.

• Expenses for cable, telex and fax transmissions and for delivery of securities.

• Taxes and other governmental charges upon the transfer of securities, such as when shares of common stock are deposited or withdrawn from deposit.

• Fees and expenses incurred in connection with the delivery or servicing of shares of common stock on deposit.

Enersis Chile will agree to pay certain other charges and expenses of the depositary. Note that the fees and charges you may be required to pay may vary over time and may be changed by us and by the depositary. You will receive prior notice of such changes.

Amendments and Termination

Enersis Chile may agree with the depositary to modify the Deposit Agreement at any time without your consent. Enersis Chile will undertake to give holders 30 days’ prior notice of any modifications that increase any fees or charges or that would materially prejudice any of their existing substantial rights under the Deposit Agreement, except in very limited circumstances enumerated in the Deposit Agreement.

You will be bound by the modifications to the Deposit Agreement if you continue to hold your ADSs after the modifications to the Deposit Agreement become effective. The Deposit Agreement cannot be amended to prevent you from withdrawing the shares of common stock represented by your ADSs, except as permitted by law.

Enersis Chile will have the right to direct the depositary to terminate the Deposit Agreement. Similarly, the depositary may in certain circumstances on its own initiative terminate the Deposit Agreement. In either case, the depositary must give notice to the holders at least 30 days before termination. Until termination, your rights under the Deposit Agreement will be unaffected.

After termination, the depositary will continue to collect distributions received (but will not distribute any such property until you request the cancellation of your ADSs) and may sell the securities held on deposit. After the sale, the depositary will hold the proceeds from such sale and any other funds then held for the holders of ADSs in a non-interest bearing account. At that point, the depositary will have no further obligations to holders other than to account for the funds then held for the holders of ADSs still outstanding (after deduction of applicable fees, taxes and expenses).

Books of Depositary

The depositary will maintain ADS holder records at its depositary office. You may inspect such records at such office at all reasonable times but solely for the purpose of communicating with other holders in the interest of matters relating to the ADSs, the Deposit Agreement or our business.

The depositary will maintain in New York facilities to record and process the issuance, cancellation, combination, split-up and transfer of ADRs. These facilities may be closed from time to time, to the extent not prohibited by law.

143

Limitations on Obligations and Liabilities

The Deposit Agreement will limit Enersis Chile’s obligations and the depositary’s obligations to you. Please note the following:

• Enersis Chile and the depositary will be obligated only to take the actions specifically stated in the Deposit Agreement without negligence or bad faith.

• The depositary disclaims any liability for any failure to carry out voting instructions, for any manner in which a vote is cast or for the effect of any vote, provided it acts in good faith and in accordance with the terms of the Deposit Agreement.

• Enersis Chile and the depositary will not be obligated to perform any act that is inconsistent with the terms of the Deposit Agreement.

• Enersis Chile and the depositary disclaim any liability if we or the depositary are prevented or forbidden from, or delayed in, doing or performing any act or thing required by the terms of the Deposit Agreement, by reason of any provision, present or future of any law or regulation, or by reason of any present or future provision of foreign exchange contract or our by-laws, or any provision of or governing the securities on deposit, or by reason of any act of God or war or other circumstances beyond our control.

• We and the depositary disclaim any liability by reason of the performance or non-performance or delay in the performance of any act or thing that may be done in their discretion.

• We and the depositary disclaim any liability by reason of any exercise or failure to exercise discretion contemplated in the Deposit Agreement.

• We and the depositary also disclaim liability for the inability by a holder to benefit from any distribution, offering, right or other benefit that is made available to holders of shares but is not, under the terms of the Deposit Agreement, made available to you.

• We and the depositary may rely without any liability upon any written notice, request or other document believed to be genuine and to have been signed or presented by the proper parties.

• We and the depositary also disclaim liability for any consequential or punitive damages resulting from any breach of the terms of the Deposit Agreement.

Pre-Release Transactions

The depositary may, in certain circumstances, issue ADSs before receiving a deposit of shares or release shares of common stock before receiving ADSs. These transactions are commonly referred to as “pre-release transactions.” The Deposit Agreement limits the aggregate size of pre-release transactions and imposes a number of conditions on such transactions, including the need to receive collateral, the type of collateral required and the representations required from brokers. The depositary may retain the compensation received from the pre-release transactions.

Taxes

You will be responsible for the taxes and other governmental charges payable on the ADSs and the securities represented by the ADSs. We, the depositary and the custodian may deduct from any distribution the taxes and governmental charges payable by holders and may sell any and all property on deposit to pay the taxes and governmental charges payable by holders. You will be liable for any deficiency if the sale proceeds do not cover the taxes that are due.

The depositary may refuse to issue ADSs, to deliver transfer, split and combine ADRs or to release securities on deposit until all taxes and charges are paid by the applicable holder. The depositary and the

144

custodian may take reasonable administrative actions to obtain tax refunds and reduce tax withholding for any distribution on behalf of holders of ADSs. However, you may be required to provide to the depositary and to the custodian proof of taxpayer status and residence and such other information as the depositary and the custodian may require to fulfill legal obligations. You are required to indemnify us, the depositary and the custodian for any claims with respect to taxes based on any tax benefit obtained for you.

Foreign Currency Conversion

The depositary will arrange for the conversion of all foreign currency received into U.S. dollars if such conversion can be done on a practicable basis and will distribute the U.S. dollars in accordance with the terms of the Deposit Agreement. You may have to pay fees and expenses incurred in converting foreign currency, such as fees and expenses incurred in complying with currency exchange controls and other governmental requirements.

If the conversion of foreign currency cannot be done on a practicable basis, or if any required approvals are denied or not obtainable at a reasonable cost or within a reasonable period, the depositary may take the following actions in its discretion:

• Convert the foreign currency to the extent permissible and distribute the U.S. dollars to the holders for whom the conversion and distribution is practicable.

• Distribute the foreign currency to holders for whom the distribution is lawful and practicable.

• Hold the foreign currency, without liability for interest, for the applicable holders.

145

PART II

Item 13. Defaults, Dividend Arrearages and Delinquencies

Not applicable.

Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds

Not applicable.

Item 15. Controls and Procedures

Not applicable.

Item 16. Reserved

Item 16A. Audit Committee Financial Expert

Not applicable.

Item 16B. Code of Ethics

Not applicable.

Item 16C. Principal Accountant Fees and Services

Not applicable.

Item 16D. Exemptions from the Listing Standards for Audit Committees

Not applicable.

Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers

Not applicable.

Item 16F. Change in Registrant’s Certifying Accountant

Not applicable.

Item 16G. Corporate Governance

Not applicable.

Item 16H. Mine Safety Disclosure

Not applicable.

146

PART III

Item 17. Financial Statements

None.

Item 18. Financial Statements

Enersis Chile

Index to the Combined Financial Statements

Report of Independent Registered Public Accounting Firm:

Report of Ernst & Young Servicios Profesionales de Auditoría y Asesorías Limitada (EY Ldta.) — Enersis Chile at September 30, 2015 and December 31, 2014	F-1
Interim Combined Financial Statements:
Interim Combined Statements of Financial Position at September 30, 2015 and December 31, 2014	F-2
Interim Combined Statements of Comprehensive Income for the nine months ended September 30, 2015 and 2014	F-4
Interim Combined Statements of Changes in Equity for the nine months ended September 30, 2015 and 2014	F-6
Interim Combined Statements of Cash Flows for the nine months ended September 30, 2015 and 2014	F-8
Notes to the Interim Combined Financial Statements	F-12
Report of Independent Registered Public Accounting Firm:
Report of Ernst & Young Servicios Profesionales de Auditoría y Asesorías Limitada — Enersis Chile at December 31, 2014 and 2013 and January 1, 2013	F-121
Audited Combined Financial Statements:
Combined Statements of Financial Position at December 31, 2014 and 2013 and January 1, 2013	F-122
Combined Statements of Comprehensive Income for the years ended December 31, 2014 and 2013	F-124
Combined Statements of Changes in Equity for the years ended December 31, 2014 and 2013	F-126
Combined Statements of Cash Flows — Direct Method for the years ended December 31, 2014 and 2013	F-127
Notes to the Audited Combined Financial Statements	F-128

Ch$	Chilean pesos
US$	U.S. dollars
UF	The UF is a Chilean inflation-indexed, peso-denominated monetary unit that is set daily in advance based on the previous month’s inflation rate.
ThCh$	Thousands of Chilean pesos
ThUS$	Thousands of U.S. dollars

Item 19. Exhibits

Exhibit	Description
1.1	By-laws (Estatutos) of Enersis Chile S.A.
2.1	Form of Specimen Share Certificate for Enersis Chile S.A. Common Stock
8.1	List of Principal Combined Entities as of September 30, 2015
15.1	Consent of Ernst & Young Servicios Profesionales de Auditoría y Asesorías Limitada, an independent registered public accounting firm
99.1*	Item 8.A.4 of Form 20-F Waiver Request and Representation

* To be included in subsequent submission.

We will furnish to the Securities and Exchange Commission, upon request, copies of any not filed instruments that define the rights of stakeholders of Enersis Chile.

147

SIGNATURES

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this Registration Statement on its behalf.

ENERSIS CHILE S.A.

By:

Name:

Title:

Date:

Enersis Chile

Interim Combined Financial Statements as of September 30, 2015 and December 31, 2014, and for the nine months ended September 30, 2015 and 2014

Index to the Audited Interim Combined Financial Statements

Reports of Independent Registered Public Accounting Firms:

Report of Ernst  & Young Servicios Profesionales de Auditoría y Asesorías Limitada (EY Ltda.) – Enersis Chile at September 30, 2015 and December 31, 2014	F-1
Combined Financial Statements:
Combined Statements of Financial Position at September 30, 2015 and December 31, 2014	F-2
Combined Statements of Comprehensive Income for the nine months ended September 30, 2015 and 2014	F-4
Combined Statements of Changes in Equity for the nine months ended September 30, 2015 and 2014	F-6
Combined Statements of Cash Flows for the nine months ended September 30, 2015 and 2014	F-8
Notes to the Combined Financial Statements	F-9

Ch$	Chilean pesos
US$	U.S. dollars
UF	The UF is a Chilean inflation-indexed, peso-denominated monetary unit that is set daily in advance based on the previous month’s inflation rate.
ThCh$	Thousand of Chilean pesos
ThUS$	Thousand of U.S. dollars

  EY Chile Avda. Presidente Riesco 5435, piso 4, Santiago   Tel: +56 (2) 2676 1000 www.eychile.cl

Report of Independent Registered Public Accounting Firm

To Shareholders and Directors of

Enersis S.A.

We have audited the accompanying interim combined statements of financial position of Enersis Chile (the “Combined Group,” as described in Note 2 to the combined financial statements) as of September 30, 2015, and the related interim combined statements of comprehensive income, shareholders’ equity and cash flows for the nine month period then ended. These financial statements are the responsibility of Enersis S.A.’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Combined Group’s internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Combined Group’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the interim combined financial position of Enersis Chile at September 30, 2015, and the interim combined results of their operations and their cash flows for the nine month period then ended, in accordance with International Accounting Standard No. 34, “Interim Financial Reporting”, as issued by the International Accounting Standards Board.

We have separately audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the combined statement of financial position of Enersis Chile as of December 31, 2014, and the related combined statements of comprehensive income, shareholders’ equity and cash flows for the year then ended (not presented herein) and we expressed an unqualified audit opinion on those combined financial statements in our report dated December 4, 2015.

/s/ EY Ltda                                                                           

EY Ltda.

Santiago, Chile

December 4, 2015

F-1

ENERSIS CHILE

Interim Combined Statements of Financial Position

At September 30, 2015 and December 31, 2014

(In thousands of Chilean pesos)

	Note		9-30-2015 ThCh$		12-31-2014 ThCh$
ASSETS
CURRENT ASSETS
Cash and cash equivalents		7		85,160,333		132,985,927
Other current financial assets		8		1,580,176		1,491,129
Other current non-financial assets				17,526,512		16,047,607
Trade and other current receivables		9		580,410,561		578,081,205
Current accounts receivable from related companies		10		21,954,154		16,952,650
Inventories		11		35,549,475		43,677,878
Current tax assets		12		22,652,733		45,648,139
Total current assets other than assets or groups of assets for disposal classified as held for sale or as held for distribution to owners				764,833,944		834,884,535
Non-current assets or groups of assets for disposal classified as held for sale		13		—		7,978,963
Non-current assets or groups of assets for disposal classified as held for sale or as held for distribution to owners				—		7,978,963
TOTAL CURRENT ASSETS				764,833,944		842,863,498
NON-CURRENT ASSETS
Other non-current financial assets		8		22,823,374		6,750,472
Other non-current non-financial assets				4,517,717		235,430
Trade and other non-current receivables		9		6,929,938		7,496,412
Investments accounted for using the equity method		14		47,687,926		40,365,323
Intangible assets other than goodwill		15		37,725,489		36,525,522
Goodwill		16		887,257,655		887,257,655
Property, plant and equipment		17		3,349,115,618		3,283,760,776
Investment property		18		8,156,603		8,514,562
Deferred tax assets		19		20,249,553		12,965,095
TOTAL NON-CURRENT ASSETS				4,384,463,873		4,283,871,247
TOTAL ASSETS				5,149,297,817		5,126,734,745

F-2

ENERSIS CHILE

Interim Combined Statements of Financial Position

At September 30, 2015 and December 31, 2014

(In thousands of Chilean pesos)

	Note		9-30-2015 ThCh$			12-31-2014 ThCh$
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Other current financial liabilities		20		31,465,056			146,364,359
Trade and other current payables		23		360,768,802			495,361,355
Current accounts payable to related companies		10		335,484,506			187,185,193
Other current provisions		24		19,554,817			11,623,514
Current tax liabilities		12		3,926,861			38,357,866
Other current non-financial liabilities				28,036,115			35,703,261
Total current liabilities other than those associated with groups of assets for disposal classified as held for sale				779,236,157			914,595,548
Liabilities associated with groups of assets for disposal classified as held for sale		13		—			5,488,147
TOTAL CURRENT LIABILITIES				779,236,157			920,083,695
NON-CURRENT LIABILITIES
Other non-current financial liabilities		20		910,216,082			778,135,167
Trade and other non-current payables		23		—			3,711,078
Other long-term provisions		24		61,064,768			27,969,935
Deferred tax liabilities		19		227,628,896			255,222,666
Non-current provisions for employee benefits		25		50,819,635			53,937,842
Other non-current non-financial liabilities				3,262,507			3,608,571
TOTAL NON-CURRENT LIABILITIES				1,252,991,888			1,122,585,259
TOTAL LIABILITIES				2,032,228,045			2,042,668,954
EQUITY
Allocated capital		26.1		2,229,108,975			2,229,108,975
Retained earnings				1,278,364,066			1,171,971,677
Other reserves		26.5		(979,516,732	)		(928,879,218	)
Equity attributable to Enersis Chile				2,527,956,309			2,472,201,434
Non-controlling interests		26.6		589,113,463			611,864,357
TOTAL EQUITY				3,117,069,772			3,084,065,791
TOTAL LIABILITIES AND EQUITY				5,149,297,817			5,126,734,745

F-3

ENERSIS CHILE

Interim Combined Statements of Comprehensive Income, by Nature

For the nine months ended September 30, 2015 and 2014

(In thousands of Chilean pesos)

		For the nine months ended September 30,
COMBINED STATEMENTS OF COMPREHENSIVE INCOME Profit (loss)	Note	2015             ThCh$			2014 (Unaudited)             ThCh$
Revenues	27		1,753,899,975			1,477,407,687
Other operating income	27		8,298,934			21,454,312
Revenues and other operating income			1,762,198,909			1,498,861,999
Raw materials and consumables used	28		(1,151,827,225	)		(1,003,840,694	)
Contribution Margin			610,371,684			495,021,305
Other work performed by the entity and capitalized	3 a. – 3 d.1		16,076,024			15,904,921
Employee benefits expense	29		(102,295,695	)		(96,504,075	)
Depreciation and amortization expense	30		(112,391,453	)		(93,389,860	)
Impairment loss recognized in the period’s profit or loss	30		(4,917,537	)		(1,075,487	)
Other expenses	31		(82,469,879	)		(93,521,920	)
Operating Income			324,373,144			226,434,884
Other gains	32		6,694,174			47,755,054
Financial income	33		11,075,425			9,124,834
Financial costs	33		(52,290,795	)		(58,021,595	)
Share of profit (loss) of associates and joint ventures accounted for using the equity method	14		7,482,890			7,728,915
Foreign currency exchange differences	33		(45,890,221	)		(13,734,131	)
Profit from indexed assets and liabilities	33		3,320,149			3,088,893
Income before taxes			254,764,766			222,376,854
Income tax expense	34		(57,496,655	)		(102,595,091	)
NET INCOME			197,268,111			119,781,763
Net income attributable to:
Enersis Chile			149,907,188			96,243,582
Non-controlling interests	26.5		47,360,923			23,538,181
NET INCOME			197,268,111			119,781,763

F-4

ENERSIS CHILE

Interim Combined Statements of Comprehensive Income, by Nature (continued)

For the nine months ended September 30, 2015 and 2014

(In thousands of Chilean pesos)

		For the nine months ended September 30,
COMBINED STATEMENTS OF COMPREHENSIVE INCOME	Note	2015             ThCh$			2014 (Unaudited)             ThCh$
Net Income			197,268,111			119,781,763
Components of other comprehensive income that will not be reclassified subsequently to profit or loss, before taxes
Losses from defined benefit plans	25.2.b		(2,332,333	)		—
Other comprehensive income that will not be reclassified subsequently to profit or loss			(2,332,333	)		—
Components of other comprehensive income (loss) that will be reclassified subsequently to profit or loss, before taxes
Foreign currency translation gains			2,952,588			8,617,612
Gains (losses) from available-for-sale financial assets			3,314			6,296
Share of other comprehensive income from associates and joint ventures accounted for using the equity method			151,687			13,239,7 66
Losses from cash flow hedges			(125,039,969	)		(99,441,280	)
Adjustments from reclassification of cash flow hedges, transferred to profit or loss			9,120,241			(8,428,439	)
Other comprehensive income (loss) that will be reclassified subsequently to profit or loss			(112,812,139	)		(86,006,045	)
Components of other comprehensive income (loss), before taxes			(115,144,472	)		(86,006,045	)
Income tax related to components of other comprehensive income that will not be reclassified subsequently to profit or loss
Income tax related to defined benefit plans			629,730			1,100,658
Income tax related to components of other comprehensive income that will not be reclassified subsequently to profit or loss			629,730			1,100,658
Income tax related to components of other comprehensive income that will be reclassified subsequently to profit or loss
Income tax related to cash flow hedge			30,136,391			24,111,073
Income tax related to available-for-sale financial assets			(895	)		(2,663	)
Income tax related to components of other comprehensive income that will be reclassified subsequently to profit or loss			30,135,496			24,108,410
Total Other Comprehensive Income (Loss)			(84,379,246	)		(60,796,977	)
TOTAL COMPREHENSIVE INCOME			112,888,865			58,984,786
Comprehensive income attributable to:
Enersis Chile			99,000,493			59,396,843
Non-controlling interests			13,888,372			(412,057	)
TOTAL COMPREHENSIVE INCOME			112,888,865			58,984,786

F-5

ENERSIS CHILE

Interim Combined Statements of Changes in Equity

For the nine months ended September 30, 2015 and 2014

(In thousands of Chilean pesos)

Statements of Changes in Equity	Allocated Capital		Changes in Other Reserves																Retained Earnings			Equity Attributable to Enersis Chile			Non-controlling Interests			Total Equity
			Reserve for Exchange Differences in Translation		Reserve for Cash Flow Hedges			Reserve for Gains and Losses for Defined Benefit Plans			Reserve for Gains and Losses on Remeasuring Available- for-Sale Financial Assets		Other Miscellaneous Reserves			Other Reserves
Equity at beginning of period 1/1/2015		2,229,108,975		11,443,966		(66,850,863	)		—			14,046		(873,486,367	)		(928,879,218	)		1,171,971,677			2,472,201,434			611,864,357			3,084,065,791
Changes in equity
Comprehensive income
Profit (loss)																				149,907,188			149,907,188			47,360,923			197,268,111
Other comprehensive income				2,279,919		(51,708,486	)		(1,571,523	)		2,414		90,981			(50,906,695	)					(50,906,695	)		(33,472,551	)		(84,379,246	)
Comprehensive income																							99,000,493			13,888,372			112,888,865
Dividends																				(41,075,392	)		(41,075,392	)		(17,681,737	)		(58,757,129	)
Increase (decrease) from other changes		—		—		—			1,571,523			—		(1,302,342	)		269,181			(2,439,407	)		(2,170,226	)		(18,957,529	)		(21,127,755	)
Total changes in equity		—		2,279,919		(51,708,486	)		—			2,414		(1,211,361	)		(50,637,514	)		106,392,389			55,754,875			(22,750,894	)		33,003,981
Equity at end of period 9/30/2015		2,229,108,975		13,723,885		(118,559,349	)		—			16,460		(874,697,728	)		(979,516,732	)		1,278,364,066			2,527,956,309			589,113,463			3,117,069,772

F-6

			Changes in Other Reserves
Statement of Changes in Equity	Allocated Capital		Reserve for Exchange Differences in Translation		Reserve for Cash Flow Hedges			Reserve for Gains and Losses for Defined Benefit Plans			Reserve for Gains and Losses on Remeasuring Available- for-Sale Financial Assets		Other Miscellaneous Reserves			Other Reserves			Retained Earnings			Equity Attributable to Enersis Chile			Non-controlling Interests			Total Equity
Equity at beginning of period 1/1/2014		2,229,108,975		3,628,184		(6,258,379	)		—			11,811		(877,246,493	)		(879,864,877	)		1,080,532,977			2,438,837,368			626,946,621			3,065,783,989
Changes in equity (Unaudited)
Comprehensive income (Unaudited)
Profit (loss) (Unaudited)																				96,243,583			96,243,583			23,538,180			119,781,763
Other comprehensive income (Unaudited)				5,252,261		(50,905,635	)		861,672			3,751		7,941,211			(36,846,740	)					(36,846,740	)		(23,950,237	)		(60,796,977	)
Comprehensive income (Unaudited)																							59,396,843			(412,057	)		58,984,786
Dividends (Unaudited)																				(45,905,332	)		(45,905,332	)		(20,838,639	)		(66,743,971	)
Increase (decrease) from other changes (Unaudited)		—		—		—			(861,672	)		—		(38,067,193	)		(38,928,865	)		(11,257,992	)		(50,186,857	)		10,204,860			(39,981,997	)
Increase (decrease) from changes in stakes of combined entities including loss of control (Note 2.4.1) (Unaudited)				—										917,513			917,513			—			917,513			577,393			1,494,906
Total changes in equity (Unaudited)		—		5,252,261		(50,905,635	)		—			3,751		(29,208,469	)		(74,858,092	)		39,080,259			(35,777,833	)		(10,468,443	)		(46,246,276	)
Equity at end of period 9/30/2014 (Unaudited)		2,229,108,975		8,880,445		(57,164,014	)		—			15,562		(906,454,962	)		(954,722,969	)		1,119,613,236			2,403,059,535			616,478,178			3,019,537,713

F-7

ENERSIS CHILE

Interim Combined Statements of Cash Flow, Direct

For the nine months ended September 30, 2015 and 2014

(In thousands of Chilean pesos)

		January - September
Statements of Direct Cash Flow	Note	2015 ThCh$			2014 (Unaudited) ThCh$
Cash flow provided by (used in) operating activities
Types of collection from operating activities
Collections from the sale of goods and services			2,258,841,320			1,733,644,468
Other collections from operating activities			2,265,599			7,448,681
Types of payment in cash from operating activities
Payments to suppliers for goods and services			(1,600,390,531	)		(1,473,341,315	)
Payments to and on behalf of employees			(104,787,077	)		(89,489,009	)
Payments on premiums and services, annual payments, and other obligations from policies held			(7,542,437	)		(6,672,429	)
Other payments for operating activities			(94,171,212	)		(69,711,350	)
Cash flows from operating activities
Income taxes paid			(107,913,797	)		(22,403,648	)
Other outflows of cash, net			(12,009,073	)		(2,693,191	)
Net cash flows provided by operating activities			334,292,792			76,782,207
Cash flow provided by (used in) investing activities
Cash flows from the loss of control of combined entities or other businesses	7.e		6,639,653			—
Cash flows used to obtain control of combined entities or other businesses	7.c		—			(37,654,762	)
Other payments to acquire equity or debt instruments belonging to other entities			—			(15,894,195	)
Other payments to acquire stakes in joint ventures			(2,295,000	)		(2,805,000	)
Proceeds from the sale of property, plant and equipment			28,732			59,655
Purchases of property, plant and equipment			(252,813,573	)		(136,852,106	)
Proceeds from the sale of other long-term assets			1,729,727			2,037,930
Purchases of other long-term assets			—			(2,059,014	)
Payments from future, forward, option and swap contracts			(3,878,518	)		(383,231	)
Collections from future, forward, option and swap contracts			156,295			2,708,854
Collections from related companies			(227,962,795	)		—
Dividends received			8,687,772			10,503,945
Interest received			1,277,630			3,770,109
Net cash flows used in investing activities			(468,430,077	)		(176,567,815	)
Cash flows provided by (used in) financing activities
Total proceeds from loans			—			221,932,163
Proceeds from long-term loans			—			221,932,163
Loans from related companies			495,451,692			488,921,142
Payment on borrowings			(137,503,915	)		(114,652,781	)
Payments on financial lease liabilities			(1,164,709	)		—
Payment of loans to related companies			(86,919,438	)		(432,290,266	)
Dividends paid			(132,737,594	)		(158,040,343	)
Interest paid			(43,865,807	)		(41,716,609	)
Change in parent company investment			(8,343,688	)		(9,763,348	)
Other outflows of cash, net			(2,407,021	)		(8,457,175	)
Net cash flows provided by (used in) financing activities			82,509,520			(54,067,217	)
Net increase (decrease) in cash and cash equivalents before effect of exchange rate changes			(51,627,765	)		(153,852,825	)
Effect of exchange rate changes on cash and cash equivalents
Effect of exchange rate changes on cash and cash equivalents			3,772,469			6,546,576
Net increase (decrease) in cash and cash equivalents			(47,855,296	)		(147,306,249	)
Cash and cash equivalents at beginning of period	7		133,015,629			214,907,097
Cash and cash equivalents at end of period	7. d		85,160,333			67,600,848

F-8

ENERSIS CHILE

NOTES TO THE INTERIM COMBINED FINANCIAL STATEMENTS

Contents			Page
1.	BACKGROUND			F-12
	1.1 THE COMBINED GROUP’S ACTIVITIES			F-13
2.	BASIS OF PRESENTATION OF THE COMBINED FINANCIAL STATEMENTS			F-13
	2.1.	Basis of preparation		F-13
	2.2.	New accounting pronouncements		F-16
	2.3.	Responsibility for the information, judgment and estimates provided		F-18
	2.4.	Combined Entities		F-19
		2.4.1 Changes in the scope of combination		F-20
		2.4.2 Uncombined companies with an ownership interest of more than 50%		F-20
	2.5.	Investment in associates and joint arrangements		F-20
	2.6.	Business combinations		F-21
3.	ACCOUNTING POLICIES APPLIED			F-22
	a)	Property, plant, and equipment		F-22
	b)	Investment property		F-24
	c)	Goodwill		F-24
	d)	Intangible assets other than goodwill		F-24
		d.1) Research and development expenses		F-25
		d.2) Other intangible assets		F-25
	e)	Impairment of non-financial assets		F-25
	f)	Leases		F-26
	g)	Financial instruments		F-26
		g.1) Financial assets other than derivatives		F-26
		g.2) Cash and cash equivalents		F-27
		g.3) Impairment of financial assets		F-27
		g.4) Financial liabilities other than derivatives		F-28
		g.5) Derivative financial instruments and hedge accounting		F-28
		g.6) Derecognition of financial assets and liabilities		F-29
		g.7) Offsetting financial assets and liabilities		F-29
		g.8) Financial guarantee contracts		F-30
	h)	Measurement of fair value		F-30
	i)	Investments accounted for using the equity method		F-31
	j)	Inventories		F-31
	k)	Non-current assets held for sale and discontinued operations		F-31
	l)	Provisions		F-32
		l.1) Provision for post-employment benefits and similar obligations		F-32
	m)	Translation of balances in foreign currency		F-32
	n)	Current / non-current classification		F-33
	o)	Income taxes		F-33
	p)	Revenue and expense recognition		F-34
	q)	Dividends		F-35
	r)	Share issuance costs		F-35
	s)	Interim financial statements		F-35
4.	SECTOR REGULATION AND ELECTRICITY SYSTEM OPERATIONS			F-35
	4.1)	Regulated framework		F-35
	4.2)	Tariff revisions		F-38

F-9

Contents			Page
5.	BUSINESS COMBINATION – ACQUISITION OF GAS ATACAMA			F-39
6.	CAPITAL INCREASE			F-41
7.	CASH AND CASH EQUIVALENTS			F-41
8.	OTHER FINANCIAL ASSETS			F-42
9.	TRADE AND OTHER RECEIVABLES			F-43
10.	BALANCES AND TRANSACTIONS WITH RELATED COMPANIES			F-44
	10.1	Balances and transactions with related companies		F-45
		a)      Receivables from related companies		F-45
		b)      Accounts payable to related companies		F-46
		c)      Significant transactions and effects on income/expenses		F-48
	10.2	Board of Directors and Key Management Personnel		F-49
	10.3	Compensation plan linked to share price		F-49
11.	INVENTORIES			F-49
12.	TAX RECEIVABLES AND PAYABLES			F-49
13.	NON-CURRENT ASSETS OR GROUPS OF ASSETS FOR DISPOSAL CLASSIFIED AS HELD FOR SALE			F-50
14.	INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD			F-52
15.	INTANGIBLE ASSETS OTHER THAN GOODWILL			F-54
16.	GOODWILL			F-56
17.	PROPERTY, PLANT, AND EQUIPMENT			F-57
18.	INVESTMENT PROPERTY			F-62
19.	DEFERRED TAXES			F-63
20.	OTHER FINANCIAL LIABILITIES			F-65
21.	RISK MANAGEMENT POLICY			F-71
22.	FINANCIAL INSTRUMENTS			F-74
23.	TRADE AND OTHER CURRENT PAYABLES			F-79
24.	PROVISIONS			F-79
25.	EMPLOYMENT BENEFIT OBLIGATIONS			F-80
26.	EQUITY			F-82
27.	REVENUE AND OTHER INCOME			F-85
28.	RAW MATERIALS AND CONSUMABLES USED			F-86
29.	EMPLOYEE BENEFITS EXPENSE			F-86
30.	DEPRECIATION, AMORTIZATION, AND IMPAIRMENT LOSSES			F-86
31.	OTHER EXPENSES			F-87
32.	OTHER GAINS (LOSSES)			F-87
33.	FINANCIAL RESULTS			F-88

F-10

Contents		Page
34.	INCOME TAXES		F-89
35.	INFORMATION BY SEGMENT		F-90
36.	THIRD PARTY GUARANTEES, OTHER CONTINGENT ASSETS AND LIABILITIES, AND OTHER COMMITMENTS.		F-94
37.	SANCTIONS		F-100
38.	ENVIRONMENT		F-103
39.	FINANCIAL INFORMATION ON ENTITIES IN THE COMBINED GROUP, SUMMARIZED		F-104
40.	SUBSEQUENT EVENTS		F-105

APPENDIX 1	ENERSIS CHILE COMBINED GROUP ENTITIES	F-106
APPENDIX 2	CHANGES IN SCOPE OF COMBINATION	F-107
APPENDIX 3	ASSOCIATED COMPANIES AND JOINT VENTURE ENTITIES	F-108
APPENDIX 4	ADDITIONAL INFORMATION ON FINANCIAL DEBT	F-109
APPENDIX 5	DETAILS OF ASSETS AND LIABILITIES IN FOREIGN CURRENCY	F-111
APPENDIX 6	ADDITIONAL INFORMATION TRADE AND OTHER RECEIVABLES	F-112
APPENDIX 6.1	COMPLEMENTARY INFORMATION ON TRADE RECEIVABLES	F-115
APPENDIX 6.2	ESTIMATED SALES AND PURCHASES OF ENERGY AND CAPACITY	F-119
APPENDIX 7	DETAILS OF DUE DATES OF PAYMENTS TO SUPPLIERS	F-120

F-11

ENERSIS CHILE

COMBINED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2015 AND DECEMBER 31, 2014

(In thousands of Chilean pesos)

1. BACKGROUND

On April 28, 2015, Enersis S.A. (“Enersis”) informed the Superintendence of Securities and Insurance (hereinafter “SVS”) through a significant event, that the Board of Directors of the company decided by unanimous vote to initiate an analysis of a corporate reorganization (“reorganization”) aimed at the separation of the activities of generation and distribution of electricity in Chile from activities outside of Chile. The objective of this would be to resolve certain duplications and redundancies that arise from Enersis’ complex corporate structure today and generate value for all its shareholders, maintaining its inclusion in the Enel S.p.A. group.

On July 27, 2015, pursuant to the provisions of Articles 9 and 10 of the Securities Market Law No. 18,045 and the provisions of General Norm No. 30 of the SVS, Enersis informed the SVS, by means of a significant event, that the Board of Directors of the company had decided unanimously that if the separation of power generation and distribution activities in Chile from the rest of the activities of the Enersis group outside of Chile were approved, the reorganization would be carried out through the following corporate transactions:

Steps to carry out the corporate reorganization:

a) Related to the preparation of the Combined Financial Statements

• Each of the direct and indirect subsidiaries of Enersis, Chilectra S.A. and Empresa Nacional de Electricidad S.A. (“Endesa S.A.”) would effect spin-offs, resulting in the formation of a new company from the spin-off by Chilectra S.A. (“Chilectra Américas”) and a new company from the spin-off by Endesa S.A. (“Endesa Américas”), which would be allocated equity interests and other assets that both Chilectra S.A. and Endesa S.A. hold outside of Chile, as well as certain other assets and liabilities related to them.

The continuing companies of Endesa S.A. and Chilectra S.A. are to be called Empresa Nacional de Electricidad S.A. (“Endesa Chile”) and Chilectra Chile S.A. (“Chilectra Chile”) after the spin-offs.

• At the same time, Enersis will be spun-off and, resulting from this spin-off, will form a new company (“Enersis Chile”), which will hold the equity interests and assets of Enersis in Chile allocated to it, including equity interests in Chilectra Chile and Endesa Chile (after the spin-off of these companies described above), and certain other assets and liabilities related to them. Remaining in continuing Enersis (to be called “Enersis Américas” after the spin-off) are the equity interests and corresponding liabilities of Enersis outside Chile, as well as those held by each of the new companies “Chilectra Américas” and “Endesa Américas”, created as a result of the spin-offs of Chilectra Américas and Endesa Américas mentioned above, and the liabilities related to them.

b) Related to the subsequent processes of the division phase.

• Once the previously mentioned spin-offs are completed, “Enersis Américas” would absorb by merger “Chilectra Américas” and “Endesa Américas”, and would dissolve them without liquidation, thus grouping all international shares of the Enersis group outside Chile in “Enersis Américas”. The merger involving “Endesa Américas” and “Chilectra Américas” would take place as soon as legally possible and in accordance with the applicable regulations.

The preparation of these combined financial statements of Enersis Chile (the “Combined Group”), do not include effects that could potentially arise as a result of the previously mentioned merger.

The resulting companies would be based in Chile and their shares would be listed in the same markets that Enersis group companies are currently listed. As stated earlier, none of the transactions described above require the contribution of additional financial resources.

F-12

On November 10, 2015, in the Enersis’ Extraordinary Board of Directors’ Meeting, the majority of the Board of Directors of the company agreed to summon an Extraordinary Shareholders’ Meeting (“ESM”), on December 18, 2015. The purpose of this meeting is for the shareholders to acknowledge and rule on, among others, the proposed corporate reorganization and all supporting information related to it.

1.1 THE COMBINED GROUP’S ACTIVITIES

Enersis Chile comprises the combination of Endesa Chile S.A. and Chilectra Chile S.A. and their combined entities and investments in associates and joint ventures (hereinafter “the Combined Group”).

Enersis Chile S.A. will be a publicly traded corporation with registered address and head office located at Avenida Santa Rosa, No. 76, in Santiago, Chile. The company will be registered in the securities register of the Superintendency of Securities and Insurance of Chile (Superintendencia de Valores y Seguros or SVS) under number 175. In addition, the company will be registered with the Securities and Exchange Commission of the United States of America (hereinafter U.S. SEC) and with Spain’sComisión Nacional del Mercado de Valores.

Enersis Chile’s corporate purpose consists of generating, transporting, producing, and distributing electrical energy. The Combined Group’s corporate purpose also includes investing in financial assets, developing projects, carrying out activities in the energy industry and in other fields in which electrical energy is essential, and participating in public civil or hydroelectric infrastructure concessions in which it may participate directly or through subsidiaries or associate companies in Chile.

Enersis Chile S.A. will be a subsidiary of Enel Iberoamérica S.R.L., a company controlled by Enel S.p.A. (hereinafter Enel).

2. BASIS OF PRESENTATION OF THE COMBINED FINANCIAL STATEMENTS

2.1 Basis of preparation

The combined financial statements as of September 30, 2015 and December 31, 2014 of Enersis Chile have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). They were approved by the Enersis’ Board Directors at its meeting held on December 2, 2015.

As of September 30, 2015, the Enersis Chile Combined Group does not represent a group for consolidated financial statement reporting purposes in accordance with IFRS 10Consolidated Financial Statements.

These combined financial statements are the first financial statements of the Combined Group in accordance with paragraph 3 of IFRS 1First-time Adoption of International Financial Reporting Standards(“IFRS 1”). The Combined Group prepared the combined financial statements using IFRS 1.D16 (a) (“parent’s accounting method”). The accompanying combined financial statements reflect the combined operations of the Combined Group as it would have been incorporated following the spin-off, assuming date would have been January 1, 2013. The combined financial statements may not be indicative of the Combined Group’s future performance and do not necessarily reflect what the results of operations, financial position and cash flows would have been had it operated, since January 1, 2013 as an independent Combined Group during the periods presented.

The Combined Group used the same accounting policies and valuation methods for the preparation of these combined financial statements, as those used by Enersis for the preparation of its Consolidated Financial Statements, unless such accounting policies and valuation methods are not in accordance with IFRS when presenting the Combined Group as a group of companies independent of Enersis. These accounting policies have been disclosed under this note and Note 3 Accounting policies. The entities and associates are included in these combined financial statements using their respective historical carrying values and amounts as included in Enersis’ Consolidated Financial Statements.

F-13

Since IFRS does not provide any guidance for the preparation of combined financial statements, paragraph 12 of IAS 8Accounting Policies, Changes in Accounting Estimates and Errors has been used for the preparation of the combined financial statements. This paragraph requires that the latest pronouncements of other standard setters, other accounting literature and accepted industry practice should be considered. The combined financial statements of Enersis Chile have been derived from the aggregation of the net assets of the Chilean business of Enersis. All intra-group balances, revenues, expenses and unrealized gains and losses arising from transactions between companies belonging to Combined Group were eliminated when preparing the combined financial statements. In addition, the investments of Enersis in the Combined Group were eliminated against the equity of the respective combined entities. Transactions with Enersis group companies, which do not belong to the Combined Group, have been disclosed as transactions with related parties.

The Combined Financial Statements have been prepared and published in thousands of Chilean peso (ThCh$), as the Chilean peso is the functional currency of Enersis Chile. Chilean operations with functional currencies other than the Chilean peso are reported in accordance with the accounting policies stated in Note 3.k. Rounding differences may occur in respect of individual amounts or percentages.

Principles applied in preparing the Combined Financial Statements

The following summarizes the accounting and other principles applied in preparing the combined financial statements. Enersis Management considers that the allocations described below have been made on a reasonable basis, but are not necessarily indicative of the costs that would have been incurred if the Combined Group had been a stand-alone entity.

Net assets of the Parent (equity)

The Combined Group has not previously formed a separate legal group nor presented any stand-alone financial statements, and accordingly it is not conceivable to present share capital or an analysis of equity reserves. The net assets of the Combined Group are represented by capital invested in the Combined Group and are shown as “Equity” using the same captions as those used by Enersis. Issued capital, share premium and retained earnings of Enersis have been allocated to Enersis Chile based on net assets value ratio assigned to it. Other reserves (which are primarily composed of the equity effects of past reorganizations, business combinations under common control, residual effects of first-time adoption of IFRS and the equity effects of the current spin-off process) have been allocated considering the transaction and circumstances that led to creation of these reserves.

Cash and cash equivalents

Cash and cash equivalents of the foreign subsidiaries of Enersis are excluded from these Combined Financial Statements. In addition, based on the exercise carried out by Enersis’ management, the ratios obtained for the division of the cash and cash equivalents of Enersis on a stand-alone basis, are as follows:

	Proportion of Economic Assets
Entity	Chile			Américas
Enersis		42	%		58	%
Endesa S.A. (Chile)		66	%		34	%
Chilectra S.A.		63	%		37	%

Intercompany balances and transactions with related parties

Intercompany balances with successors of Enersis were allocated by identifying the entity that provided/received the service as well as the nature of it. Intercompany balances with Enersis Chile were eliminated in full for the purpose of these combined financial statements. Intercompany balances with Enersis Americas are included in these combined financial statements and disclosed as accounts with related parties.

F-14

Debt instruments and related interest expenses, exchange differences and effects of hedge accounting strategies

Financial debt and related interest expenses and exchange rate differences of the Chilean subsidiaries of Enersis are included in these combined financial statements. Financial debt and related interest expenses and exchange rate differences of Enersis stand-alone have been 100% allocated to Enersis Americas and are not included in these combined financial statements.

In relation to derivative instruments designated as hedging instruments for the Chilean subsidiaries of Enersis have been included in these combined financial statements. Enersis’ management has adopted as a criterion to keep the strategies of hedge accounting. Therefore, all effects on the statement of financial position, income and other comprehensive income are assigned to the specific companies to which the hedged items were assigned. In the case of Enersis on a stand-alone basis, the main items covered by the hedging strategies are related to debt (hedging exposure to foreign currency debt and variability in interest rates). Therefore, the main derivative instruments associated with such hedging strategies have been assigned according to Enersis Américas, an entity that will assume 100% of the debt of Enersis stand-alone.

Personnel, salary expenses other employee benefits

For purposes of properly distributing the accounting effect of personnel from Enersis on a stand-alone basis between Enersis Chile and Enersis Américas, the Enersis’ Management defined as a criterion to identify those personnel whose main activities are related 100% with the operations based in Chile under Enersis. This group of employees was assigned to Enersis Chile. On the other hand, Management also identified those employees whose main activities relate 100% to foreign operations. This group of employees was assigned to Enersis Américas.

All remaining personnel, who divide their main activities between the Chilean operations of Enersis and foreign operations, were assigned to Enersis Chile, meaning that as of the date of the spin-off, those employees would identify the activities offered to foreign operations of Enersis and vice-versa. This should lead to contracts of the inter-company provision of services between Enersis Chile and Enersis Américas. Accordingly, the costs of thes employees have been allocated based on the expected ratio of time devoted to activities offered to Enersis Chile companies and the total available time.

Below is a summary table presenting the breakdown of the employees to be allocated to Enersis Chile and Enersis Américas:

	Employee Allocation
Entity	Chile		Américas
Enersis		391		87
Endesa S.A.		925		7
Chilectra S.A.		668		2
Total		1,984		96

Once the allocation of personnel was determined Enersis management applied the same criteria to the division of all accounts of the statements of financial position, income and other comprehensive income that were affected by this criterion.

Dividends receivable and payable

The criterion defined by Enersis’ Management to allocate to both Enersis Chile as well as to Enersis Américas a portion of dividends receivable accounts from Enersis stand-alone as of the date of the corporate spin-off, has been based mainly on identifying the origin of each one of those dividends. If the dividends come directly from a Chilean subsidiary, these dividends have been allocated 100% to Enersis Chile.

F-15

Income tax

The tax effect (income statement and income tax provision) related to the Chilean subsidiaries of Enersis are included in these combined financial statements and was calculated using the statutory corporate tax rates according to the jurisdiction where the pre-tax income was originated.

In addition, for the tax effect in the income statement of Enersis on a stand-alone basis it has been allocated to these combined financial statements by determining a hypothetical taxable income as if Enersis Chile and Enersis Americas had operated as separate taxpayers. However, and from a tax point of view, there is currently only one taxpaying company, which is Enersis, and whose successor entity would be Enersis Americas, if the corporate reorganization is finally approved. Accordingly, income tax payable by Enersis has not been allocated to the combined financial statements.

In relation to deferred tax assets and liabilities, these have been assigned to Enersis Chile and Enersis Américas, taking into account the underlying assets and liabilities, whose respective temporary differences have originated such deferred taxes.

Other working capital accounts

Working capital items such as accounts receivable, accounts payable and inventories that are directly attributable to the Chilean operations of the Combined Group are included in the combined financial statements.

2.2 New accounting pronouncements

a) Accounting pronouncements effective from January 1, 2015:

Standards, Interpretations and Amendments	Mandatory Application for:
Amendment to IAS 19: Employee Benefits The purpose of this amendment is to simplify the accounting for contributions from employees or third parties that are not determined on the basis of an employee’s years of service, such as employee contributions calculated according to a fixed percentage of salary.	Annual periods beginning on or after July 1, 2014.
Improvements to IFRS (2010-2012 and 2011-2013 Cycles) These are a set of improvements that were necessary, but not urgent, and that amend the following standards: IFRS 2, IFRS 3, IFRS 8, IFRS 13, IAS 16, IAS 24, IAS 38 and IAS 40.	Annual periods beginning on or after July 1, 2014.

The new interpretation and amendments adopted, which became effective on January 1, 2015, had no effect on the interim combined financial statements.

F-16

b) Accounting pronouncements effective from January 1, 2016 and subsequent periods:

As of the date of issue of these combined financial statements, the following accounting pronouncements had been issued by the IASB, but their application was not yet mandatory:

Standards, Interpretations and Amendments	Mandatory Application for:
Amendment to IFRS 11: Joint Arrangements This amendment states that the accounting standards contained in IFRS 3 and other standards that are pertinent to business combinations accounting must be applied to the accounting for acquiring an interest in a joint operation in which the activities constitutes a business.	Annual periods beginning on or after January 1, 2016.
Amendment to IAS 16 and IAS 38: Clarification of Acceptable Methods of Depreciation and Amortization The amendment to IAS 16 explicitly forbids the use of revenue-based depreciation for property, plant and equipment. The amendment to IAS 38 introduces the rebuttable presumption that, for intangible assets, the revenue-based amortization method is inappropriate and establishes two limited exceptions.	Annual periods beginning on or after January 1, 2016.
Improvements to IFRS (2012-2014 Cycles) These are a set of improvements that were necessary, but not urgent, and that amend the following standards IFRS 5, IFRS7, IAS19 and IAS 34.	Annual periods beginning on or after January 1, 2016.
Amendment to IFRS 10 and IAS 28: Sale or Contribution of Assets The amendment corrects an inconsistency between IFRS 10 and IAS 28 relating to the accounting treatment of the sale or contributions of assets between an Investor and its Associate or Joint Venture.	Annual periods beginning on or after January 1, 2016.
Amendment to IAS 27: Equity Method in Separate Financial Statements This improvement allows entities to use the equity method to account for investments in subsidiaries, joint ventures and associates in their separate financial statements. The objective of the improvement is to minimize the costs associated with complying with the IFRS, particularly for those entities applying IFRS for the first time, without reducing the information available to investors.	Annual periods beginning on or after January 1, 2016.
Amendment to IAS 1: Disclosure Initiative The IASB has issued amendments to IAS 1 as part of its principal initiative to improve the presentation and disclosure of information in financial statements. These amendments are designed to assist companies in applying professional judgment to determine the disclosures that should be included in their financial statements.	Annual periods beginning on or after January 1, 2016.

F-17

Standards, Interpretations and Amendments	Mandatory application for:
Amendment to IFRS 10, IFRS 12 and IAS 28: Investment Entities, Application of the Consolidation Exception The amendments, which have a restricted scope, introduce clarifications to the requirements for the accounting of investment entities. The modifications also provide relief in some circumstances, which will reduce the costs of applying the Standards.	Annual periods beginning on or after January 1, 2016.
IFRS 9: Financial Instruments This is the final version of the standard issued in July 2014 and which completes the IASB project to replace IAS 39 “Financial Instruments: Recognition and Measurement.” This project was divided into 3 phases: Phase 1 – Classification and measurement of financial assets and financial liabilities. This introduces a logical focus for the classification of financial assets driven by cash flow characteristics and the business model. This new model also results in a single impairment model being applied to all financial instruments. Phase 2 – Impairment methodology. The objective is a more timely recognition of expected credit losses. The standard requires entities to account for expected credit losses from the time when financial instruments are first recognized in the financial statements. Phase 3 – Hedge accounting. This establishes a new model aimed at reflecting better alignment between hedge accounting and risk management activity. Also included are enhancements to required disclosures. This final version of IFRS 9 replaces the previous versions of the Standard.	Annual periods beginning on or after January 1, 2018.
IFRS 15: Revenue from Contracts with Customers This new standard applies to all contracts with customers except leases, financial instruments and insurance contracts. Its purpose is to make financial information more comparable, and it provides a new model for revenue recognition and more detailed requirements for contracts with multiple obligations. It also requires more itemized information. This standard will replace IAS 11 and IAS 18 as well as their interpretations (IFRIC 13, IFRIC 15, IFRIC 18 and SIC 31).	Annual periods beginning on or after January 1, 2018.

The Combined Group is currently assessing the impact of applying IFRS 9 and IFRS 15, however, it is not practicable to provide a reasonable estimate of the effects that these IFRSs will have until the Combined Group performs a detail review. In Enersis management’s opinion, the future application of the other standards and amendments is not expected to have a significant effect on the interim combined financial statements of the Combined Group.

2.3 Responsibility for the information, judgments and estimates provided

Management is responsible for the information contained in these interim combined financial statements and expressly states that all IFRS principles and standards, as issued by the IASB, have been fully implemented.

F-18

In preparing the interim combined financial statements, certain judgments and estimates made by the Enersis management have been used to quantify some of the assets, liabilities, income, expenses and commitments recorded in the statements.

The most important areas were critical judgment is required are:

• The identification of Cash Generating Units (CGU) for impairment testing (see Note 3.e).

• The hierarchy of information used to measure assets and liabilities at fair value (see Note 3.h)

The estimates refer basically to:

• The valuations performed to determine the existence of impairment losses among tangible and intangible assets and goodwill (see Note 3.e).

• The assumptions used to calculate the actuarial liabilities and obligations to employees, such as discount rates, mortality tables, salary raises, etc. (see Notes 3.m.1 and 25).

• The useful life of property, plant and equipment, and intangible assets (see Notes 3.a and 3.d).

• The assumptions used to calculate the fair value of financial instruments (see Notes 3.g.5 and 22).

• Energy supplied to customers whose meter readings are pending.

• Certain assumptions inherent in the electricity system affecting transactions with other companies, such as production, customer billings, energy consumption, etc. that allow for estimating electricity system settlements that must occur on the corresponding final settlement dates, but that are pending as of the date of issuance of the interim combined financial statements and could affect the balances of assets, liabilities, income and expenses recorded in the statements (see appendix 6.2).

• The probability that uncertain or contingent liabilities will be incurred and their related amounts (see Note 3.m).

• Future disbursements for the closure of facilities and restoration of land, as well as the discount rates to be used (see Note 3.a).

• The tax results of the various combined entities of the Combined Group that will be reported to the respective tax authorities in the future, and that have served as the basis for recording different balances related to income taxes in these interim combined financial statements (see Note 3.o).

• The fair values of assets acquired and liabilities assumed, and any pre-existing interest in an entity acquired in a business combination.

Although these judgments and estimates have been based on the best information available on the issuance date of these combined financial statements, future events may occur that would require a change (increase or decrease) to these estimates in subsequent periods. This change would be made prospectively, recognizing the effects in the corresponding future combined financial statements.

2.4 Combined entities

Combined entities are defined as those entities controlled, either directly or indirectly, by the Combined Group. Control is achieved when Enersis has i) power over the combined entity; ii) is exposed, or has rights, to variable returns from its involvement with the combined entity; and iii) has the ability to use its power to affect its returns.

Enersis Chile has power over its combined entities when it holds the majority of the substantive voting rights or, when it has less than a majority of the voting rights, and those rights are sufficient to give it the practical ability to direct the relevant activities of the combined entity unilaterally.

The Combined Group reassesses whether or not it controls a combined entity if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.

F-19

Appendix 1 – Enersis Combined Entities to these combined financial statements describes the relationship of Enersis Chile with each of its combined entities.

2.4.1 Changes in the scope of combination

On January 9, 2015, our combined entity Empresa Nacional de Electricidad S.A. (Endesa Chile S.A.), sold all the shares owned in Sociedad Concesionaria Túnel El Melón S.A. for ThCh$25,000,000 (see Note 32).

The elimination of Sociedad Concesionaria Túnel El Melón S.A. from Enersis Combined Group’s scope of combination caused a decrease in the combined statement of financial position of ThCh$871,022 in current assets, ThCh$7,107,941 in non-current assets, ThCh$3,698,444 in current liabilities and ThCh$1,789,703 in non-current liabilities.

On December 30, 2014, Inmobiliaria Manso de Velasco Ltda, a combined entity of Enersis, completed the sale of all of its direct and indirect ownership interest in the companies Construcciones y Proyectos Los Maitenes S.A. and Aguas Santiago Poniente S.A. The selling price of these shares was ThCh$57,173,142, which was received in cash on the same date (see note 32).

The elimination of Maitenes S.A. and Aguas Santiago Poniente S.A. from the Enersis Combined Group’s scope of combination caused a decrease in the combined statement of financial position of ThCh$54,845,853 in current assets, ThCh$12,822,077 in non-current assets, and ThCh$1,393,348 in current liabilities; there was no effect on non-current liabilities.

During the first half of 2014, the company Inversiones GasAtacama Holding Limitada was incorporated to the Enersis Combined Group’s scope of combination as a result of Endesa Chile S.A.’s acquisition of a 50% interest in that company on April 22, 2014 (see Note 5).

By virtue of this operation, the following companies became combined entities of the Combined Group: Inversiones GasAtacama Holding Limitada, GasAtacama S.A., GasAtacama Chile S.A., Gasoducto TalTal S.A., Progas S.A., Gasoducto Atacama Argentina S.A., Atacama Finance Co., GNL Norte S.A. and Energex Co.

The incorporation of GasAtacama Holding Limitada to the Enersis Combined Group’s scope of combination resulted in an increase in the in the interim combinated statement of financial position of ThCh$198,924,289 in current assets, ThCh$221,471,415 in non-current assets, ThCh$69,989,919 in current liabilities, and ThCh$35,672,488 in non-current liabilities.

2.4.2 Uncombined companies with an ownership interest of more than 50%

Although the Combined Group holds more than a 50% ownership interest in Centrales Hidroeléctricas de Aysén S.A. (Aysén), it is considered a “joint venture” since the Combined Group, through contracts or agreements with shareholders, exercises joint control of the company.

2.5 Investment in associates and joint arrangements

Associates are those in which the Combined Group, either directly or indirectly, exercises significant influence.

Significant influence is the power to participate in the financial and operational policy decisions of the associate but does not control or have joint control over those policies. In general, significant influence is presumed to be those cases in which the Combined Group has an ownership interest of more than 20% (see Note 3.i).

Joint arrangements are defined as those entities in which the Combined Group exercises control under an agreement with other shareholders and jointly with them, in other words, when decisions on the entities’

F-20

relevant activities require the unanimous consent of the parties sharing control. Joint arrangements are classified as:

• Joint ventures: an agreement whereby the parties exercising joint control have rights to the entity’s net assets.

• Joint operation: an agreement whereby the parties exercising joint control have rights to the assets and obligations with respect to the liabilities relating to the arrangement. Currently, Enersis Chile does not have any joint arrangements that qualify as joint operations.

Appendix 3 – “Associated Companies and Joint Ventures” to these combined financial statements describes the relationship of Enersis Chile with each of these companies.

2.6 Business combinations

The combined entities are combined and all their assets, liabilities, revenues, expenses, and cash flows are included in the combined financial statements once the adjustments and eliminations from intercompany transactions have been made.

The comprehensive income of combined entities is included in the combined statement of comprehensive income from the date when Enersis Chile obtains control of the combined entity and until the date on which it loses control of the combined entity.

The operations of Enersis Chile and its combined entities have been combined under the following principles:

1. At the date Enersis Chile obtains control, the combined entity’s assets acquired and its liabilities assumed are recorded at fair value, except for certain assets and liabilities that are recorded using valuation principles established in other IFRS standards. If the fair value of the consideration transferred plus the fair value of any non-controlling interest exceeds the fair value of the net assets acquired, this difference is recorded as goodwill. In the case of a bargain purchase, the resulting gain is recognized in profit or loss for the period after reassessing whether all of the assets acquired and the liabilities assumed have been properly identified and following a review of the procedures used to measure the fair value of these amounts.

For each business combination, the Combined Group chooses whether to measure the non-controlling interests in an acquired company at fair value or at the proportional share of the net identifiable assets acquired.

If the fair value of assets acquired and liabilities assumed at the acquisition date it has not been completed, the Combined Group reports the provisional values recorded. During the measurement period, which shall not exceed one year from the acquisition date, the provisional values recognized will be adjusted retrospectively and additional assets or liabilities will be recognized to reflect new information obtained on events and circumstances that existed on the acquisition date, but which were unknown to management at that time.

For business combinations achieved in stages, the fair value of the equity interest previously held in the acquired company is measured on the date of acquisition and any profit or loss is recognized in the results for that fiscal year.

2. Non-controlling interests in equity and in the comprehensive income of the combined entities are presented, respectively, under the line items “Total Equity: Non-controlling interests” in the combined statement of financial position and “Net Income attributable to non-controlling interests” and “Comprehensive income attributable to non-controlling interests” in the combined statement of comprehensive income.

F-21

3. The financial statements of combined entities with functional currencies other than the Chilean peso are translated as follows:

a. For assets and liabilities, the prevailing exchange rate on the closing date of the financial statements is used.

b. For items in the comprehensive income statement, the average exchange rate for the period is used (unless this average is not a reasonable approximation of the cumulative effect of the exchange rates in effect on the dates of the transactions, in which case the exchange rate in effect on the date of each transaction is used).

c. Equity remains at the historical exchange rate from the date of acquisition or contribution, and retained earnings at the average exchange rate at the date of origination.

d. Exchange differences arising in translation of financial statements are recognized in the item “Foreign currency translation gains (losses)” in other comprehensive income (see Note 26.2).

4. Balances and transactions between combined entities were fully eliminated in the combination process.

5. Changes in interests in combined entities that do not result in taking or losing control are recorded as equity transactions, and the book value of the controlling and non-controlling interests is adjusted to reflect the change in relative interest in the combined entity. Any difference that may exist, between the value for which a non-controlling interest is adjusted and the fair value of a compensation paid or received, is recognized directly in Equity attributable to Enersis Chile.

6. Business combinations under common control are recorded using, as a reference, the ‘pooling of interest’ method. Under this method, the assets and liabilities involved in the transaction remain reflected at the same book value at which they were recorded in the ultimate controlling company, although subsequent accounting adjustments may need to be made to align the accounting policies of the companies involved.

Any difference between the assets and liabilities contributed to the combination and the compensation given is recorded directly in Net equity as a debit or credit to other reserves. The Combined Group does not apply retrospective accounting records of business combinations under common control.

3. ACCOUNTING POLICIES APPLIED

The main accounting policies used in preparing the accompanying combined financial statements are the following:

a) Property, plant and equipment

Property, plant and equipment are measured at acquisition cost, net of accumulated depreciation and any impairment losses they may have experienced. In addition to the price paid to acquire each item, the cost also includes, where applicable, the following concepts:

• Financing expenses accrued during the construction period that are directly attributable to the acquisition, construction, or production of qualified assets, which require a substantial period of time before being ready for use such as, for example, electricity generation or distribution facilities. The Combined Group defines “substantial period” as one that exceeds twelve months. The interest rate used is that of the specific financing or, if none exists, the weighted average financing rate of the company carrying out the investment. The weighted average financing rate was 5.10% as of September 30, 2015 and 8.8% as of September 30, 2014. The amount capitalized for this concept amounted to ThCh$1,354,490 and ThCh$1,022,024 during the periods ended September 30, 2015 and 2014, respectively (see Note 33).

• Employee expenses directly related to construction in progress. The amounts capitalized under this concept for the periods ended September 30, 2015 and 2014 were ThCh$16,076,024 and ThCh$15,904,921, respectively.

F-22

• Future disbursements that the Combined Group will have to incur to close its facilities are added to the cost of the asset, recognizing the corresponding provision for dismantling or restoration. The Combined Group reviews its estimates on an annual basis, increasing or decreasing the value of the asset and the liability based on the results of this estimate (see Note 24).

Items for construction work in progress are transferred to operating assets once the testing period has been completed and they are available for use, at which time depreciation begins.

Expansion, modernization or improvement costs that represent an increase in productivity, capacity or efficiency, or a longer useful life are capitalized as increasing the cost of the corresponding assets.

The replacement or overhaul of entire components that increase the asset’s useful life or economic capacity are recorded as an increase in cost for the respective assets, derecognizing the replaced or overhauled components.

Expenditures for periodic maintenance, conservation and repair are recognized directly as an expense for the year in which they are incurred.

The Combined Group, based on the outcome of impairment testing performed as explained in Note 3.e), considers that the carrying amount of assets does not exceed their recoverable amount.

Property, plant and equipment, net of its residual value, is depreciated by distributing the cost of the different items that comprise it on a straight-line basis over its estimated useful life, which is the period during which the Combined Group expects to use the assets. Useful life estimates and residual values are reviewed on an annual basis and if appropriate adjusted prospectively.

The following table sets forth the main categories of property, plant and equipment with their respective estimated useful lives:

Categories of Property, plant and equipment	Years of estimated useful lives
Buildings	22 - 100
Plant and equipment	3 - 85
IT equipment	3 - 15
Fixtures and fittings	5 - 21
Motor vehicles	5 - 10
Other	2 - 33

Additionally, the following table sets forth more details on the useful lives of plant and equipment items:

	Years of estimated useful lives
Generating facilities:
Hydroelectric plants
Civil engineering works	35-65
Electromechanical equipment	10-85
Fuel oil/coal-fired power plants	25-40
Combined cycle plants	10-35
Renewable energy power plants	35
Transmission and distribution facilities:
High-voltage network	10-80
Low- and medium-voltage network	7-62
Measuring and remote control equipment	3-76
Other facilities	4-25
Natural gas transport facilities
Pipelines	35

F-23

Land is not depreciated since it has an indefinite useful life.

Gains or losses that arise from the sale or disposal of items of Property, plant and equipment are recognized as “Other gains (losses)” in the comprehensive income statement and are calculated by deducting the net book value of the asset and any sales expenses from the amount received in the sale.

b) Investment property

Investment property includes land and buildings held for the purpose of earning rentals and/or for capital appreciation.

Investment property is measured at acquisition cost less any accumulated depreciation and impairment losses that have been incurred. Investment property, excluding land, is depreciated on a straight-line basis over the useful lives of the related assets.

An investment property is derecognized upon disposal or when no future economic benefits are expected from its use or disposal.

Gains or losses on derecognition of the investment property is calculated as the difference between the net disposal proceeds and the carrying amount of the asset.

The breakdown of the fair value of investment property is detailed in Note 18.

c) Goodwill

Goodwill arising from business combinations represents the excess of the consideration paid plus the amount of any non-controlling interests over the Combined Group’s share of the net value of the assets acquired and liabilities assumed, measured at fair value at the acquisition date. If the accounting for a business combination is completed, as well as the determination of goodwill, after the end of the reporting period in which the combination occurs, the amounts previously reported presented are adjusted, for comparative purposes to include the value of the assets acquired and liabilities assumed and the value of the final goodwill as of acquisition date.

Goodwill arising from acquisition of entities with functional currencies other than the Chilean peso is measured in the functional currency of the acquired company and translated to Chilean pesos using the closing exchange rate.

Goodwill is not amortized; instead, at the end of each reporting period or when there are indicators that an impairment might have occurred, the Combined Group estimates whether any impairment loss has reduced its recoverable amount to an amount less than the carrying amount and, if so, it impairment loss is immediately recognized in profit or loss (see Note 3.e).

d) Intangible assets other than goodwill

Intangible assets are initially recognized at their acquisition cost or production cost, and are subsequently measured at their cost, net of their accumulated amortization and impairment losses they may have experienced.

Intangible assets are amortized on a straight line basis during their useful lives, starting from the date when they are ready for use, except for those with an indefinite useful life, which are not amortized. As of September 30, 2015 and December 31, 2014, there are no significant intangible assets with an indefinite useful life.

An intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and de carrying amount of the asset are recognized in profit or loss when the asset is derecognized.

The criteria for recognizing these assets’ impairment losses and, if applicable, recovery of impairment losses recorded in previous fiscal years are explained in Note 3.e below.

F-24

d.1) Research and development expenses

The Combined Group recognizes the costs incurred in a project’s development phase as intangible assets in the statement of financial position as long as the project’s technical feasibility and future economic benefits have been demonstrated.

d.2) Other intangible assets

Other intangible assets correspond to computer software, water rights, and easements. They are initially recognized at acquisition or production cost and are subsequently measured at cost less accumulated amortization and impairment losses, if any.

Computer software is amortized (on average) over five years. Certain easements and water rights have indefinite useful lives and, therefore, are not amortized, while others have useful lives ranging from 40 to 60 years, depending on their characteristics, and they are amortized over that term.

e) Impairment of non-financial assets

During the year, and principally at the end of each reporting period, the Combined Group evaluates whether there is any indication that an asset has been impaired. If any such indication exist, the Combined Group estimates the recoverable amount of that asset to determine the amount of the impairment loss. In the case of identifiable assets that do not generate cash flows independently, the Combined Group estimates the recoverable amount of the Cash Generating Unit (CGU) to which the asset belongs, which is understood to be the smallest identifiable group of assets that generates independent cash inflows.

Notwithstanding the preceding paragraph, in the case of CGUs to which goodwill or intangible assets with an indefinite useful lives have been allocated, a recoverability analysis is performed routinely at each period end.

Recoverable amount is the higher of fair value less costs of disposal and value in use, which is defined as the present value of the estimated future cash flows. In order to calculate the recoverable amount of Property, plant, and equipment, as well as of goodwill, and intangible assets, the Combined Group uses value in use criteria in practically all cases.

To estimate value in use, the Combined Group prepares future pre-tax cash flow projections based on the most recent budgets available. These budgets incorporate management’s best estimates of a CGUs’ revenue and costs using sector projections, past experience and future expectations.

In general, these projections cover the next five years, estimating cash flows for subsequent years by applying reasonable growth rates which, in no case, are increasing rates nor exceed the average long-term growth rates for the particular sector and country in which the Combined Group operates. As of September 30, 2105 and December 31, 2014, projections were extrapolated from the following rates:

Growth Rates (g)
9-30-2015	12-31-2014
4.1% - 5.1%		2.2% - 5.0%

Future cash flows are discounted to calculate their present value at a pre-tax rate that covers the cost of capital for the business activity and the geographic area in which it is being carried out. The time value of money and risk premiums generally used among analysts for the business activity and the geographic zone are taken into account to calculate the pre-tax rate.

The following are the pre-tax discount rates applied in 2015 and 2014 expressed in nominal terms:

September 2015				December 2014
Minimum	Maximum			Minimum			Maximum
8.7%		13.1	%		7.9	%		13.0	%

F-25

If the recoverable amount of the CGU is estimated to be less than its carrying amount, an impairment loss is recognized in the combined statement of comprehensive income. The impairment is first allocated to reduce the carrying amount of any goodwill allocated to the CGU, and then to the other assets of the unit pro rata on the basis of the carrying amount of each asset in the unit. The carrying amount of an asset is not reduced below the highest of fair value less costs of disposal, its value in use; or zero.

Impairment losses recognized for an asset in prior periods are reversed when there are indications that the impairment loss no longer exists or may have decreased, thus increasing the asset’s carrying amount with a credit to earnings. The increase in the asset’s carrying amount shall not exceed that carrying amount that would have been determined had no impairment loss been recognized for the asset. Goodwill impairment losses are not reversed in subsequent periods.

f) Leases

In order to determine whether an arrangement is, or contains, a lease, the Combined Group assesses the economic substance of the agreement, in order to determine whether fulfillment of the arrangement depends on the use of a specific asset and whether the agreement conveys the right to use an asset. If both conditions are met, at the inception of the arrangement the Combined Group separates the payments and other considerations relating to the lease, at their fair values, from those corresponding to other components of the agreement.

Leases that substantially transfer all the risks and rewards of ownership to the Combined Group are classified as finance leases. All others leases are classified as operating leases.

Finance leases in which the Combined Group acts as a lessee are recognized at the inception of the arrangement. At that time, the Combined Group records an asset based on the nature of the lease and a liability for the same amount, equal to the fair value of the leased asset or the present value of the minimum lease payments, if the latter is lower. Subsequently, the minimum lease payments are apportioned between finance expenses and reduction of the lease obligation. Finance expenses are recognized immediately in the income statement and allocated over the lease term, so as to achieve a constant interest rate on the remaining balance of the liability. Leased assets are depreciated on the same terms as other similar depreciable assets, as long as there is reasonable certainty that the lessee will acquire ownership of the asset at the end of the lease. If no such certainty exists, the leased assets are depreciated over the shorter of the useful lives of the assets and their lease term.

In the case of operating leases, payments are recognized as an expense in the case of the lessee and as income in the case of the lessor, both on a straight-line basis, over the term of the lease unless another type of systematic basis of distribution is deemed more representative.

g) Financial instruments

Financial instruments are contracts that give rise to both a financial asset in one entity and a financial liability or equity instrument in another entity.

Purchases and sales of financial assets are accounted for using their trade date.

g.1) Financial assets other than derivatives

The Combined Group classifies its financial assets other than derivatives, whether permanent or temporary, except for investments accounted for using equity method (See Note 14) and those held for sale, into four categories:

• Loans and account receivables: Trade and other receivables and accounts receivable from related companies are recognized at amortized cost, which is the initial fair value less principal repayments made, plus accrued and uncollected interest, calculated using the effective interest method.

F-26

The effective interest method is used to calculate the amortized cost of a financial asset or liability (or group of financial assets or financial liabilities) and of allocating finance income or cost over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash flows to be received or paid over the expected life of the financial instrument or, when appropriate, a shorter period to the net carrying amount of the financial asset or financial liability.

• Held-to-maturity investments: Investments that the Combined Group intends to hold and is capable of holding until their maturity are accounted for at amortized cost as defined in the preceding paragraph.

• Financial assets at fair value with changes in net income: This category includes the trading portfolio and those financial assets that have been designated as such upon initial recognition and that are managed and evaluated on a fair value basis. They are measured in the combined statement of financial position at fair value, with changes in value recorded directly in income when they occur.

• Available-for-sale financial assets: These are financial assets specifically designated as available-for-sale or are not classify within any of the three preceding categories.

These investments are recognized in the combined statement of financial position at fair value when it can be reliably determined. For investments in equity instruments in unlisted companies or companies with lower levels of liquidity, normally the fair value cannot be reliably measured. When this occurs, those investments in equity instruments are measured at cost less impairment losses, if any.

Changes in fair value, net of taxes, are recognized in other comprehensive income, until the investments are disposed of, at which time the amount accumulated in other comprehensive income is reclassified to profit or loss.

If the fair value is lower than cost, and if there is objective evidence that the asset has been more than temporarily impaired, the difference is recognized directly in profit or loss.

Purchases and sales of financial assets are accounted for using their trade date.

g.2) Cash and cash equivalents

This item within the interim combined statement of financial position includes cash and bank balances, time deposits, and other highly liquid investments (with original maturity of less than or equal to 90 days) that are readily convertible to cash and are subject to insignificant risk of changes in value.

g.3) Impairment of financial assets

The following criteria are used to determine if a financial assets has been impaired:

• For trade receivables in the electricity generation, transmission and distribution segments, the Combined Group’s policy is to recognized impairment losses when there is objective evidence that the balance will not be recoverable. In general terms, the Combined Group’s entities has a defined policy to recognize an allowance for impairment losses based on the aging of past-due balances, except in those cases where a specific collective basis analysis is recommended, such as in the case of receivables from government-owned companies (see Note 9).

• In the case of receivables of a financial nature, that are included in the “Loan and receivables” and “Investment held-to-maturity”, impairment is determined on case-by-case basis and is measured as the difference between the carrying amount and the present value of the future estimated cash flows discounted at the original effective interest rate (see Notes 8 and 22).

• For financial investments available-for-sale, the criteria for impairment applied are described in Note 3.g.1

F-27

g.4) Financial liabilities other than derivatives

Financial liabilities are recognized based on cash received, net of any costs incurred in the transaction. In subsequent periods, these obligations are measured at their amortized cost using the effective interest rate method (see Note 3.g.1).

In the particular case that a liability is the hedged item in a fair value hedge, as an exception, such liability is measured at its fair value for the portion of the hedged risk.

In order to calculate the fair value of debt, both when it is recorded in the statement of financial position and for fair value disclosure purposes as shown in Note 22, debt has been divided into fixed interest rate debt (hereinafter “fixed-rate debt”) and variable interest rate debt (hereinafter “floating-rate debt”). Fixed-rate debt is that on which fixed-interest coupons established at the beginning of the transaction are paid explicitly or implicitly over its term. Floating-rate debt is that debt issued at a variable interest rate, i.e., each coupon is established at the beginning of each period based on the reference interest rate. All debt has been measured by discounting expected future cash flows with a market interest rate curve based on the payment currency.

g.5) Derivative financial instruments and hedge accounting

Derivatives held by the Combined Group are transactions entered into to hedge interest and/or exchange rate risk, intended to eliminate or significantly reduce these risks in the underlying transactions being hedged.

Derivatives are recorded at fair value at the end of each reporting period as follows: if their fair value is positive, they are recorded within “Other financial assets”; and if their fair value is negative, they are recorded within “Other financial liabilities.” For derivatives on commodities, the positive fair value is recorded in “Trade and other receivables,” and negative fair values are recorded in “Trade and other liabilities.”

Changes in fair value are recorded directly in profit or loss, except when the derivative has been designated for hedge accounting purposes as a hedge instrument (in a cash flow hedge) and all of the conditions for applying hedge accounting are met, including that the hedge be highly effective. In this case, changes are recorded as follows:

• Fair value hedges: The underlying portion for which the risk is being hedged (hedged risk) and the hedge instrument are measured at fair value, and any changes in value of both items are recognized in the combined statement of comprehensive income by offsetting the effects in the same comprehensive income statement account.

• Cash flow hedges: Changes in fair value of the effective portion of the hedged item and hedge instrument are recorded in other comprehensive income an accumulated in an equity reserve known as “Reserve for cash flow hedges.” The cumulative gain or loss in in this reserve is reclassified to the combined statement of comprehensive income to the extent that the hedged item impacts the combined statement of comprehensive income offsetting the effect in the same comprehensive income statement account. Gains or losses from the ineffective portion of the hedging relationship are recorded directly in the combined statement of comprehensive income.

A hedge relationship is considered highly effective when changes in fair value or in cash flows of the underlying item directly attributable to the hedged risk are offset by changes in fair value or cash flows of the hedging instrument, with an effectiveness ranging from 80% to 125%.

As a general rule, long-term commodity purchase or sale agreements are recorded in the combined statement of financial position at their fair value at the end of each reporting period, recognizing any differences in value directly in profit or loss, except for, when all of the following conditions are met:

• The sole purpose of the agreement is for the Combined Group’s own use, which is understood as: (i) in the case of fuel purchase agreements its used to generate electricity; (ii) in the case of electrical energy purchased for sale, its sale to the end-customers; and, (i) in the case of electricity sales its sale to the end-customers.

F-28

• The Combined Group’s future projections evidence the existence of these agreements for its own use.

• Past experience with agreements evidence that they have been utilized for the Combined Group’s own use, except in certain isolated cases when for exceptional reasons or reasons associated with logistical issues have been used beyond the control and projection of the Combined Group.

• The agreement does not stipulate settlement by differences and the parties have not made it a practice to settle similar contracts with differences in the past.

The long-term commodity purchase or sale agreements maintained by the Combined Group, which are mainly for electricity, fuel, and other supplies, meet the conditions described above. Thus, the purpose of fuel purchase agreements is to use them to generate electricity, electricity purchase contracts are used to sell to end-customers, and electricity sale contracts are used to sell the Combined Group’s own products.

The Combined Group also evaluates the existence of derivatives embedded in contracts or financial instruments to determine if their characteristics and risk are closely related to the principal contract, provided that when taken as a whole they are not being accounted for at fair value. If they are not closely related, they are recorded separately and changes in value are accounted for directly in the comprehensive income statement.

The fair value of financial derivatives is determined using the following procedures:

• For derivatives quoted in an organized market, its quoted price at the end of each reporting period.

• For derivatives non-quoted in an organized market, the Combined Group measures derivatives not traded on active markets by using the discounted cash flow method and generally accepted options valuation models, based on current and future market conditions as of year-end. It also adjusts the value according to its own credit risk (Debt Valuation Adjustment, DVA), and the counterparty risk (Credit Valuation Adjustment, CVA). These CVA and DVA adjustments are measured on the basis of the potential future exposure of the instrument (creditor or borrower position) and the risk profile of both the counterparties and the Combined Group itself.

g.6) Derecognition of financial assets and liabilities

Financial assets are derecognized when:

• The contractual rights to receive cash flows from the financial asset expire or have been transferred or, if the contractual rights are retained, the Combined Group has assumed a contractual obligation to pay these cash flows to one or more recipients.

• The Combined Group has substantially transferred all the risks and rewards of ownership of the financial asset, or, if it has neither transferred nor retained substantially all the risks and rewards, when it does not retain control of the financial asset.

Transactions in which the Combined Group retains substantially all the inherent risks and rewards of ownership of the transferred asset, it continues recognizing the transferred asset in its entirety and recognizes a financial liability for the consideration received. Transactions costs are recognized in profit and loss by using the effective interest method (see Note 3.g.1).

Financial liabilities are derecognized when they are extinguished, that is, when the obligation arising from the liability has been paid or cancelled, or has expired.

g.7) Offsetting financial assets and liabilities.

The Combined Group offsets financial assets and liabilities and the net amount is presented in the statement of financial position when, and only when:

• There is a legally enforceable right to set off the recognized amounts; and

F-29

• There is an intention to settle on a net basis, or to realize the asset and settle the liability simultaneously.

g.8) Financial guarantee contracts

Financial guarantee contracts, such as guarantees given by the Combined Group to third parties, are initially recognized at fair value, adjusting the transaction costs that are directly attributable to the issuance of the guarantee.

Subsequently to initial recognition, financial guarantee contracts are measured at the higher of:

• the amount determined under accounting policy describe in Note 3.m; and

• the amount initially recognized less, if appropriate, any accumulated amortization.

h) Measurement of fair value

The fair value of an asset or liability is defined as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Fair value measurement assumes that the transaction to sell an asset or transfer a liability occurs in the principal market, namely, the market with the greatest volume and level of activity for that asset or liability. In the absence of a principal market, it is assumed that the transaction is carried out in the most advantageous market available to the entity, namely, the market that maximizes the amount that would be received to sell the asset or minimizes the amount that would be paid to transfer the liability.

In estimating fair value, the Combined Group uses valuation techniques that are appropriate for the circumstances and for which there are sufficient data to conduct the measurement. The Combined Group maximizes the use of relevant observable data and minimizes the use of unobservable data.

Considering the hierarchy of the data used in these valuation techniques, the assets and liabilities measured at fair value can be classified into the following levels:

Level 1:	Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2:	Inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly (i.e. as prices) or indirectly (i.e. derived from prices). The methods and assumptions used to determine the fair values at Level 2 by type of financial asset or financial liability take into consideration estimated future cash flows discounted at zero coupon interest rate curves for each currency. All the valuations described are carried out using external tools, such as “Bloomberg”.
Level 3:	Inputs for assets or liabilities that are not based on observable market data (unobservable inputs).

The Combined Group takes into account the characteristics of the asset or liability when measuring fair value, in particular:

• For non-financial assets, fair value measurement takes into account the ability of a market participant to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use;

• For liabilities and equity instruments, the fair value measurement assumes that the liability would not be settled and an equity instrument would not be cancelled or otherwise extinguished on the measurement date. The fair value of the liability reflects the effect of non-performance risk, namely, the risk that an entity will not fulfill the obligation, which includes, but is not limited to, the Combined Group’s own credit risk;

F-30

• In the case of financial assets and financial liabilities with offsetting positions in market risks or counterparty credit risks, it is permitted to measure the fair value on a net basis. However, this must be consistent with the manner in which market participants would price the net risk exposure at the measurement date.

i) Investments accounted for using the equity method

The Combined Group’s interests in joint ventures and associates are recognized using the equity method.

Under the equity method, an investment in an associate or joint venture is initially recognized at cost. As of the acquisition date, the investment is recognized in the statement of financial position based on the share of its equity that the Combined Group’s interest represents in its capital, adjusted for, if appropriate, the effect of transactions with Combined Group’s entities, plus any goodwill generated in acquiring the entity. If the resulting amount is negative, zero is recorded for that investment in the statement of financial position, unless the Combined Group has a present obligation (either legal or constructive) to support the investee’s negative equity situation, in which case a provision is recognized.

Goodwill from associates or joint ventures is included in the carrying amount of the investment. It is not amortized but is subject to impairment testing as part of the overall investment carrying amount when impairment indicators exist.

Dividends received from these investments are deducted from the carrying amount of the investment, and any profit or loss obtained from them to which the Combined Group is entitled based on its ownership interest is recognized under “Share of profit (loss) of associates accounted for using equity method.”

Appendix No. 3, “Enersis Chile Combined Group Associated Companies and Joint Ventures,” to these combined interim financial statements, provides information about the relationship of Enersis with each of these entities.

j) Inventories

Inventories are measured at their weighted average acquisition cost or the net realizable value, whichever is lower.

k) Non-current assets held for sale and discontinued operations

The Combined Group classifies property, plant and equipment; intangible assets; investments accounted for using the equity method, joint ventures, and disposal groups (a group of assets to be disposed of and the liabilities directly associated with those assets) as non-current assets held for sale, if, as of the date of the combined financial statements, the Combined Group has taken active measures for their sale and estimates that such sale is highly probable.

Non-current assets held-for-sale or disposal groups are measured at the lower of their carrying amount and fair value less costs of disposal. Depreciation and amortization on these assets cease when they meet the criteria to be classified as non-current assets held for sale.

Assets that are no longer classified as held for sale, or are no longer part of a disposal group, are measured at the lower of their carrying amounts before being classified as held for sale less any depreciations, amortizations or revaluations that would have been recognized if they had not been classified as held for sale and their recoverable amount at the date of subsequent decision where would be reclassified as non-current assets.

Non-current assets and the components of the disposal groups classified as held for sale are presented in the combined statement of financial position as a single line item within assets called “Non-current assets or disposal groups classified as held for sale,” and the respective liabilities are presented as a single line item within liabilities called “Liabilities included in disposal groups classified as held for sale.”

F-31

The Combined Group classifies as discontinued operations those separate major lines of business that have been sold or disposed of, or are classified as held for sale, including other assets that are part of the same coordinated sales or disposal plan. Similarly, entities that have been acquired exclusively with a view to resale are also considered discontinued operations.

The components of profit or loss after taxes from discontinued operations are presented as a single line item in the combined comprehensive income statement as “Net income from discontinued operations”.

l) Provisions

Provisions are recognized when the Combined Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Combined Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

Provisions are measured using the best information available as of the date of issuance of the combined financial statements considering the consequences of the event causing the provision and are re-estimated at the end of each subsequent reporting period.

l.1) Provisions for post-employment benefits and similar obligations

Some of the combined entities have pension and similar obligations with their employees. These obligations, which can be defined benefits and defined contributions, are basically formalized through pension plans, except for certain non-monetary benefits, mainly electricity supply commitments, which, due to their nature, have not been externalized and are covered by the related in-house provisions.

For defined benefit plans, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at the end of each reporting period. Past service costs relating to changes in benefits are recognized immediately.

The defined benefit plan obligations in the statement of financial position represent the present value of the accrued obligations, adjusted, once the fair value of the different plans’ assets has been deducted, if any.

For each of the defined benefit plans, any deficit between the actuarial liability and the plan assets (if any) is recognized under line item “Provisions for employee benefits” within current and non-current liabilities in the combined statement of financial position.

Actuarial gains and losses arising in measurement of both the plan liabilities and the plan assets (if any, and excluding interest) are recognized directly in other comprehensive income.

Contributions to defined contribution benefit plans are recognized as an expense in the combined statement of comprehensive income when the employees have rendered their services.

m) Translation of foreign currency balances

Transactions carried out by each entity in a currency other than its functional currency are recognized using the exchange rates prevailing as of the date of the transactions. During the year, any differences that arise between the prevailing exchange rate at the date of the transaction and the exchange rate as of the date of collection or payment are recognized as “Foreign currency exchange differences” in the combined statement of comprehensive income.

Likewise, at the end of each reporting period, receivable or payable balances denominated in a currency other than each entity’s functional currency are translated using the closing exchange rate. Any differences

F-32

are recorded as “Foreign currency exchange differences” in the combined statement of comprehensive income.

The Combined Group has established a policy to hedge the portion of revenue from its combined entities that is directly linked to variations in the U.S. dollar, through obtaining financing in such currency. Exchange differences related to this debt, which is regarded as the hedging instrument in cash flow hedge transactions, are recognized, net of taxes, in other comprehensive income and are accumulated in an equity reserve and reclassified to profit or loss when the hedged cash flows impact profit or loss. This term has been estimated at five years.

n) Current/non-current classification

In these combined statements of financial position, assets and liabilities expected to be recovered or settled within twelve months are presented as current items, except for post-employment and other similar obligations. Those assets and liabilities expected to be recovered or settled in more than twelve months are presented as non-current items. Deferred income tax assets and liabilities are classified as non-current.

When the Combined Group have any obligations that mature in less than twelve months but can be refinanced over the long term at the Combined Group’s discretion, through unconditionally available credit agreements with long-term maturities, such obligations are classified as long-term liabilities.

o) Income taxes

Income tax expense for the period is determined as the sum of current taxes from the Combined Group’s different combined entities and results from applying the tax rate to the taxable income for the period, after permitted deductions have been made, plus any changes in deferred tax assets and liabilities and tax credits, both for tax losses and deductions. Differences between the carrying amount and tax basis of assets and liabilities generate deferred tax assets and liabilities, which are calculated using the tax rates expected to apply when the assets and liabilities are realized or settled, based on tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax assets are recognized for all deductible temporary differences, tax losses and unused tax credits to the extent that it is probable that sufficient future taxable profits exist to recover the deductible temporary differences and make use of the tax credits. Such deferred tax asset is not recognized if the deductible temporary difference arises from the initial recognition of an asset or liability that:

• Did not arise from a business combination, and

• At initial recognition affected neither accounting profit nor taxable profit (loss).

With respect to deductible temporary differences associated with investments in combined entities, associates and joint arrangements, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profits will be available against which the temporary differences can be utilized.

Deferred tax liabilities are recognized for all temporary differences, except those derived from the initial recognition of goodwill and those that arose from investments in combined entities, associates and joint ventures in which the Combined Group can control their reversal and where it is probable that they will not be reversed in the foreseeable future.

Current tax and changes in deferred tax assets or liabilities are recorded in profit or loss or in equity, depending on where the gains or losses that triggered these tax entries have been recognized.

Any tax deductions that can be applied to current tax liabilities are credited to earnings within the line item “Income tax expenses”, except when doubts exist about their tax realization, in which case they are not recognized until they are effectively realized, or when they correspond to specific tax incentives, in which case they are recorded as government grants.

F-33

At the end of each reporting period, the Combined Group reviews the deferred taxes assets and liabilities recognized, and makes, if any, necessary corrections based on the results of this analysis.

Deferred tax assets and deferred tax liabilities are offset in the combined statement of financial position if has a legally enforceable right to set off current tax assets against current tax liabilities, and only when the deferred taxes relate to income taxes levied by the same taxation authority.

p) Revenue and expense recognition

Revenue is recognized when the gross inflow of economic benefits arising in the course of the Combined Group’s ordinary activities in the period occurs, provided that this inflow of economic benefits results in an increase in total equity other than increases relating to contributions from equity participants and such benefits can be measured reliably.

Revenues and expenses are recognized on an accrual basis and depending on the type of transaction; the following criteria for recognition are taken:

• Generation of electricity: Revenue is recognized based on physical delivery of energy and power, at prices established in the respective contracts, at prices stipulated in the electricity market by applicable regulations or at marginal cost determined on the spot market, as the case. This revenue includes an estimate of the service provided and not billed until the closing date (see Note 2.3).

• Distribution of electricity: Revenue is recognized based on the amount of energy supplied to customers during the period, at prices established in the respective contracts or at prices stipulated in the electricity market by applicable regulations, as appropriate. This revenue includes an estimate of the energy supplied not yet read the meters customer (see Note 2.3).

Revenue is recognized based on the economic substance of the transaction and are recognized when all and each of the following conditions are met:

• the entity has transferred to the buyer the significant risks and rewards of ownership of the goods;

• the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

• the amount of revenue can be measured reliably;

• it is probable that the economic benefits associated with the transaction will flow to the entity; and

• the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue is measured at the fair value of the consideration received or receivable that gives rise to the revenue.

In arrangements under which the Combined Group will perform multiple revenue-generating activities (multiple-element arrangement), the recognition criteria are applied to the separately identifiable components of the transaction in order to reflect the substance of the transaction or to two or more transactions together when they are linked in such a way that the commercial effect cannot be understood without reference to the series of transactions as a whole.

Revenue from rendering of services is only recognized when it can be estimated reliably, by reference to the stage of completion of the service rendered at the date of the statement of financial position. When the outcome of a transaction involving the rendering of services cannot be estimated reliably, revenue is recognized only to the extent of the expenses recognized that are recoverable.

The Combined Group excludes from revenue those gross inflows of economic benefits it receives when it acts as an agent or commission agent on behalf of third parties, and only recognizes as revenue economic benefits received for its own activity.

F-34

When goods or services are exchanged or swapped for goods or services of a similar nature and value, the exchange is not regarded as a revenue-generating transaction.

The Combined Group recognizes the net amount of non-financial asset purchases or sale contracts that are settled for a net amount of cash or through some other financial instruments. Contracts entered into and maintained for the purpose of receiving or delivering these non-financial assets are recognized on the basis of the contractual terms of the purchase, sale, or usage requirements expected by the entity.

Financial income (expense) is recognized using the effective interest rate applicable to the outstanding principal over the repayment period.

Expenses are recognized on an accruals basis, immediately in the event of expenditures that do not generate future economic benefits or when they do not meet the requirements for recording them as assets.

q) Dividends

Article 79 of the Chilean Companies Act establishes that, unless unanimously agreed otherwise by the shareholders of all issued shares, listed corporations must distribute a cash dividend to shareholders on an annual basis, pro rata to the shares owned or the proportion established in the company’s by-laws if there are preferred shares, of at least 30% of net income for each year, except when accumulated losses from prior years must be absorbed.

As it is practically impossible to achieve a unanimous agreement not to approve the mandatory dividend, given Enersis’ highly fragmented share capital. At the end of each reporting period the amount of the minimum statutory dividend obligation to its shareholders is determined, net of interim dividends approved during the fiscal year, and then accounted for in “Trade and other current payables” and “Accounts payable to related companies,” as appropriate, and recognized in Equity.

Interim and final dividends are deducted from Equity when approved by the competent body, which in the first case is normally the Board of Directors and in the second case is the shareholders as agreed at an Ordinary Shareholders’ Meeting.

r) Capital issuance costs

Capital issuance costs, only when represents incremental expenses directly attributable to the transaction, are recognized directly in equity as a deduction from “Allocated capital”, net of any applicable taxes. If the allocated capital account has a zero balance or if the costs described exceed the balance, they are recognized in “Other reserves.”

s) Interim financial statements

The accompanying interim financial statements of the Combined Group as of September 30, 2015 and for the nine months ended September 30, 2015 and 2014 have been prepared in accordance with International Accounting Standards 34, Interim Financial Reporting.

4. SECTOR REGULATION AND ELECTRICITY SYSTEM OPERATIONS

4.1 Regulatory framework:

The electricity sector is regulated by the General Law of Electrical Services (Chilean Electricity Law), also known as DFL No. 1 of 1982, of the Ministry of Mining, whose compiled and coordinated text was established in DFL No. 4 issued in 2006 by the Ministry of Economy (the Electricity Law), as well as by an associated Regulation (D.S. No. 327 issued in 1998). Three government bodies are primarily responsible for enforcing this law: the National Energy Commission (CNE), which has the authority to propose regulated tariffs (node prices) and to draw up indicative plans for the construction of new generating units; the

F-35

Superintendency of Electricity and Fuels (SEF), which supervises and oversees compliance with the laws, regulations, and technical standards that govern the generation, transmission, and distribution of electricity, as well as liquid fuels, and gas; and the Ministry of Energy, which is responsible for proposing and guiding public policies on energy matters. It also oversees the SEF, the CNE, and the Chilean Commission for Nuclear Energy (ChCNE), thus strengthening coordination and allowing for an integrated view of the energy sector. The Ministry of Energy also includes the Agency for Energy Efficiency and the Center for Renewable Energy, (Centro de Energías Renovables –CER), which in November 2014 was replaced by the National Center for Innovation and Development of Sustainable Energy (Centro Nacional para la Innovación y Fomento de las Energías Sustentables –CIFES). The Chilean Electricity Law has also established a Panel of Experts whose main task is to resolve potential discrepancies among the players in the electricity market, including electricity companies, system operators, regulators, etc.

From a physical viewpoint, the Chilean electrical sector is divided into four electrical grids: theSistema Interconectado Central (SIC), theSistema Interconectado del Norte Grande (SING), and two separate medium-size grids located in southern Chile, one in Aysén and the other in Magallanes. The SIC, the main electrical grid, runs 2,400 km longitudinally and connects the country from Taltal in the north to Quellon, on the island of Chiloe in the south. The SING covers the northern part of the country, from Arica down to Coloso, covering a length of some 700 km. A law was passed on January 8, 2014, which will allow the SIC to be connected to the SING.

The electricity industry is organized into three business segments: generation, transmission, and distribution, all operating in an interconnected and coordinated manner, and whose main purpose is to supply electrical energy to the market at minimum cost while maintaining the quality and safety service standards required by the electrical regulations. As essential services, the power transmission and distribution businesses are natural monopolies; these segments are regulated as such by the electricity law, which requires free access to networks and regulates rates.

Under the Chilean Electricity Law, companies engaged in generation and transmission on an interconnected electrical grid must coordinate their operations through a centralizing operating agent, the Centro de Despacho Económico de Carga (CDEC), in order to operate the system at minimum cost while maintaining a reliable service. For this reason, the CDEC plans and operates the system, including the calculation of the so-called “marginal cost,” which is the price assigned to energy transfers among power generating companies.

Therefore, a company’s decision to generate electricity is subject to the CDEC’s operation plan. On the other hand, each company is free to decide whether to sell its energy to regulated or unregulated customers. Any surplus or deficit between a company’s sales to its customers and its energy supply is sold to, or purchased from, other generators at the spot market price.

A power generating company may have the following types of customers:

(i)Distribution companies that supply power to regulated customers: This distribution is to residential and commercial consumers and small and medium-size businesses with a connected capacity equal to or less than 500 kW located in the concession area of a distribution company. Until January 2015, customers consuming between 500kW and 2,000 kW may choose to be regulated or unregulated customers. On January 29, 2015, it was published in the Official Gazzette an amendment to the law increasing the upper threshold from 2,000kW to 5,000kW. A summarized description of the scope of the amendments to the law are described below.

Until 2009, the transfer prices between generators and distribution companies for supplying power to regulated customers were capped at a maximum value called the node price, which is regulated by the Ministry of Energy. Node prices are set every six months, in April and October, based on a report prepared by the CNE that takes into account projections of expected marginal costs in the system over the next 48 months for the SIC and 24 months for the SING. Beginning in 2010, and as the node price contracts begin to expire, the transfer prices between generators and distributors are being replaced by the results of regulated bidding processes, with a price cap set by the authority every six months.

F-36

(ii)Unregulated customers: Those customers, mainly industrial and mining companies, with a connected capacity of over 5,000 kW. These consumers can freely negotiate prices for electrical supply with generators and/or distributors. Customers with capacity between 500 and 5,000 kW, have the option to contract energy at prices agreed upon with their suppliers or be subject to regulated prices, with a minimum term of at least four years under each pricing system. As previously discussed, the 5,000 kW threshold became effective beginning on January 30, 2015.

(iii)Spot market: This represents energy and capacity transactions among generating companies that result from the CDEC’s coordination to keep the system running as economically as possible, where the surpluses (deficits) between a generator’s energy supply and the energy it needs to comply with business commitments are transferred through sales (purchases) to (from) other generators in the CDEC. In the case of energy, transfers are valued at the marginal cost, while node prices for capacity are set every semester by the regulators.

In Chile, the capacity that must be paid to each generator depends on an annual calculation performed by the CDEC to determine the firm capacity of each power plant, which is not the same as the dispatched capacity.

Beginning in 2010 with the enactment of Law 20,018, distribution companies must have sufficient supply permanently available to cover their entire demand projected for a period of three years; to do so, they must carry out long-term public bidding processes. This period of three years has been changed to five years, following the legislative amendment published in January 2015.

On May 15, 2014, the Minister of Energy presented the “Energy Agenda,” a document outlining general guidelines for the energy policy of the new government. On July 31, 2014, the Ministry of Energy launched “Energy 2050” Project, in order to define long-term energy goals. On September 29, 2015, the Timetable of Energy 2050 was released, and on November 4, 2015 opened for Public Consultation Energy 2050 until December 8, 2015.

On September 29, 2014 a Tax Reform was published in the Official Gazzette, which emphasizes the creation of so-called green tax to be levied on air emissions of particulate matter (PM), nitrogen oxides (NOx), sulfur dioxide (SO2) and carbon dioxide (CO2). The tax will be US$5/ton for CO2 emissions.

On January 29, 2015, Law 20,805 was published in the Official Gazzette, incorporating a legal amendment to the energy bidding processes for consumption of regulated customers. Among the main changes incorporated through this amendment are the increased participation of the CNE in the bidding processes; the increase from three to five years for the anticipated bidding announcements; the incorporation of a reserved price as a limit price for each bid; the chance for a bidder to delay the energy supply in case of force majeure; the increase of the duration of the supply contract up to 20 years; the incorporation of short-term biddings; the treatment for energy without contract; and the increase in the upper threshold to qualify as regulated customer from 2,000 to 5,000 kW.

Non-Conventional Renewable Energy

In Chile, Law 20,257 was enacted in April of 2008 to encourage the use of Non-Conventional Renewable Energy (NCRE). The principal aspect of this law is that at least 5% of the energy sold by generation companies to their customers must come from renewable sources between years 2010 and 2014. This requirement progressively increases by 0.5% from year 2015 until 2024, when a 10% renewable energy requirement will be reached. This law was amended in 2013 by Law 20,698, dubbed the “20/25 law,” as it establishes that by 2025, 20% of power supplied will be generated by NCRE. It does not change the previous law’s plan for supplying power under agreements in effect in July 2013.

Limits on integration and concentration

Chile has legislation in effect that defends free competition and, together with specific regulations that apply to the electricity market, defines criteria to avoid certain levels of economic concentration and/or abusive market practices.

F-37

In principle, the regulators allow the participation of companies in different activities (e.g. generation, distribution, and commercialization) as long as there is an adequate separation of each activity, for both accounting and company purposes. Nevertheless, most of the restrictions imposed involve the transmission sector mainly due to its nature and to the need to guarantee adequate access to all agents. In Chile, there are specific restrictions if generation or distribution companies want to become majority shareholders in transmission companies.

Regarding concentration in a specific sector, while there are regulations on free competition, there are no specific quantitative limits on vertical or horizontal integration. However, the General Law on Electrical Services provides that companies that operate on or have ownership in the Trunk Transmission Systems cannot engage in, either directly or indirectly, activities that are in any way involved in the business of power generation or distribution.

Market for unregulated customers

In Chile, distributing companies can supply their customers under regulated or freely-agreed conditions. For clients purchasing more than 500kW and less than 5,000 Kw may choose between the regulated and unregulated markets. Clients purchasing more than 5,000 kW are required to be categorized as unregulated customers. The 5,000 kW threshold became effective beginning on January 30, 2015. Clients purchasing less than 500 kW are regulated customers and such threshold is applied if energy is purchased from renewable sources, for which the government provide incentives through a discount on tolls.

4.2 Tariff Revisions:

General Aspects

In Chile, selling prices charged to clients are based on the purchase price paid to generators plus a component associated with the value added in distribution. Regulators set this value periodically through reviews of distribution tariffs. As a result, distribution is essentially a regulated activity.

The Distribution Value Added (VAD) is established every four years. For this, the local regulator, (the CNE) classifies companies by typical areas that group together companies with similar distribution costs. A distribution company’s return on investment depends on the company’s performance compared to model company standards defined by the regulator. On April 2, 2013, the Energy Ministry published Tariff Decree No. 1T in the Official Gazette. This was made retrospectively to November 4, 2012 and will remain in effect until November 3, 2016. The next tariff-setting process will take place in 2016 and will cover the period November 2016 to November 2020.

On June 23, 2015, the Energy Ministry published in the Official Gazette, Decree No.12T, which established the node prices for energy supply that will be retrospectively applied beginning on January 1, 2015.

On May 12, 2015, the Energy Ministry published in the Official Gazette, Decrees No.2T and 3T, which established the node prices for energy supply that will be retrospectively applied beginning on September 1 and October 1, 2014, respectively.

On May 22, 2015, the Energy Ministry published in the Official Gazette, Decree No. 9T, which established the node prices for energy supply that will be retrospectively applied beginning on October 1, 2014.

Decree No. 14, which established the subtransmission tolls for this segment for 2011-2014 was published in the Official Gazette on April 9, 2013. On January 29, 2015, the Energy Ministry extends the term of the Decree until 2015, as it is state on transitory articles on Law 20.805. The Average Node Price Decrees transfer these tolls to final customers, as they are part of distribution company’s costs.

Our combined entity, Chilectra S.A. during the first nine months of 2015, had recognized provisions for sale and purchase of energy and capacity, from the application of the Average Node Price decrees (PNP), which generated a net gain of ThCh$30,399,644 (A net gain for ThCh$75,313,324 in 2014).

F-38

5. BUSINESS COMBINATION – ACQUISITION OF GASATACAMA

On April 22, 2014, the Combined Group through its combined entity Endesa Chile acquired the remaining 50% ownership interest in Inversiones GasAtacama Holding Limitada (hereinafter “GasAtacama”) that was owned by Southern Cross Latin America Private Equity Fund III L.P. (hereinafter “Southern Cross”) at that time.

Consequently, the Combined Group now holds 100% of control over GasAtacama which at the same time is the owner of (i) the Atacama Plant, a 780 MW capacity combined cycle thermal power plant fired by natural gas or diesel oil located in the north of Chile; (ii) the 940 km Atacama Pipeline that runs between Coronel Cornejo in Argentina and Mejillones in Chile; and (iii) the 223 km Taltal Pipeline between Mejillones and Paposo.

Upon obtaining control of GasAtacama, the Combined Group’s total generation capacity in Chile’s northern grid (theSistema Interconectado del Norte Grande, or SING) reached 1,000 MW, and it is expected to enable us to satisfy greater industrial, residential and mining demand through a competitively priced energy supply with a low environmental impact.

GasAtacama acquisition was recognized using the accounting criteria for business combinations achieved in stages as detailed in Note 2.6.1.

Since the date of acquisition, GasAtacama has contributed ThCh$113,074,006 in revenues and ThCh$33,443,547 in income before tax to the Combined Group’s results. Had the acquisition taken place on January 1, 2014, it is estimated that these amounts would have been ThCh$179,474,707 in revenues and ThCh$41,772,291 in income before tax for the year ended December 31, 2014.

a) Consideration transferred

The following table summarizes the fair value of each type of consideration transferred in connection with the GasAtacama acquisition:

	ThCh$
Total price paid		174,028,622
Transaction recorded separately from the assets acquired and liabilities assumed (i)		(16,070,521	)
Total consideration paid in cash (Note 7)		157,958,101

(i) The total consideration transferred was ThCh$174,028,622 and included the assignment of rights to collect on an outstanding loan of ThCh$16,070,521 owed by Pacific Energy Sub Co. (a subsidiary of Southern Cross) to Atacama Finance Co. (a subsidiary of GasAtacama).

b) Acquisition-related costs

Endesa Chile incurred costs for ThCh$23,543 in financial advisory fees related to the acquisition of Inversiones GasAtacama Holding Limitada. These costs have been recognized under the line item “Other expenses” in the combined statements of comprehensive income.

F-39

c) Identifiable assets acquired and liabilities assumed

The following table summarizes the fair values recognized for identifiable assets acquired and liabilities assumed in connection with the acquisition:

	Fair Value
Identifiable assets acquired, net	ThCh$
Cash and cash equivalents		120,303,339
Trade and other current receivables		34,465,552
Current accounts receivable from related companies		5,692,257
Inventories		15,009,265
Property, plant and equipment		199,660,391
Deferred tax assets		2,392,531
Other assets		23,906,126
Trade and other current payables		(30,818,836	)
Current accounts payable to related companies		(34,445,277	)
Deferred tax liabilities		(28,923,167	)
Other liabilities		(10,874,817	)
Total		296,367,364

No risk of default is expected for the gross amount of trade and other receivables.

Given the nature of GasAtacama’s business and assets, the fair value of the assets acquired and liabilities assumed was measured using the following valuation approaches:

i. The market approach using the comparison method, based on quoted market prices for identical or comparable items when available.

ii. The cost approach or depreciated replacement cost, which reflects adjustments for physical deterioration and functional and economic obsolescence.

iii. The income approach, which uses valuation techniques that convert future amounts (such as cash flows or income and expenses) into a single current amount (that is, discounted). The fair value measurement reflects current market expectations for those future amounts.

Reconciliation of values

Finally, the fair values were determined from an assessment and reconciliation of the results obtained from the methods selected, based on the nature of each asset acquired and liability assumed.

d) Goodwill

	ThCh$
Total consideration paid		157,958,101
Fair value of pre-existing interest in the acquiree		157,147,000
Fair value of identifiable net assets acquired		(296,367,364	)
Goodwill (See Note 16)		18,737,737

The goodwill is attributable primarily to the value of the synergies expected to be obtained by integrating GasAtacama into the Combined Group. These synergies include reduced administrative, research and structure costs, which could be absorbed by Endesa Chile.

e) Remeasurement of pre-existing interest and currency translation differences

The remeasurement of the fair value of Endesa Chile’s pre-existing 50% equity interest in GasAtacama resulted in a gain of ThCh$21,546,320. The gain recognized was the positive difference between the acquisition-date fair value of the pre-existing equity interest of ThCh$157,147,000, and the carrying amount of the investment accounted for using the equity method at the acquisition date of ThCh$135,600,682.

F-40

In addition, the exchange differences on translation of the pre-existing equity interest accumulated in the equity of the Combined Group at the acquisition date, were reclassified to profit or loss resulting in a gain of ThCh$21,006,456.

Both amounts have been recorded in the caption “Other gains (losses)” in the interim combined statement of comprehensive income (see Note 32).

6. CAPITAL INCREASE

The Enersis allocated capital increase approved by the Extraordinary Shareholders’ Meeting on December 20, 2012 was completed in the first quarter of 2013; all of the allocated shares were subscribed (see Note 26.1.1).

This capital increase amounted to ThCh$2,845,858,393. Of this, 60.62% of the shares were subscribed by Endesa S.A., Enersis’ parent company located in Spain, and were paid for with its investments in Latin America valued at ThCh$1,724,400,000. The remaining shares were subscribed and paid with non-controlling interests of Enersis via cash payments of ThCh$1,121,458,393, which included a Allocated capital of ThCh$1,460,503. This capital increase has been reflected in these combined financial statements to the extent of the contributions in kind of additional interests of Endesa S.A.’s in certain entities in Chile.

7. CASH AND CASH EQUIVALENTS

a) The detail of cash and cash equivalents as of September 30, 2015 and December 31, 2014, is as follows:

Cash and Cash Equivalents	Balance at
	9-30-2015 ThCh$		12-31-2014 ThCh$
Cash balances		464,185		634,059
Bank balances		16,865,200		17,765,485
Time deposits		14,811,059		83,326,061
Other fixed-income instruments		53,019,889		31,260,322
Total		85,160,333		132,985,927

Time deposits have a maturity of three months or less from their date of acquisition and accrue the market interest for this type of short-term investment. Other fixed-income investments are mainly comprised of repurchase agreements with original maturities of less than or equal to 90 days.

b) The detail of cash and cash equivalents by currency is as follows:

Currency	9-30-2015 ThCh$		12-31-2014 ThCh$
Chilean peso		71,981,322		44,863,907
Argentine peso		6,915,499		4,206,734
U.S. dollar		6,263,512		83,915,286
Total		85,160,333		132,985,927

c) The following table shows the amounts paid to obtain control of combined entities as of September 30, 2015 and December 31, 2014:

Acquisition of Combined Entities	9-30-2015 ThCh$		12-31-2014 ThCh$
Acquisitions paid in cash and cash equivalents		—		(157,958,101	)
Cash and cash equivalents in entities acquired		—		120,303,339
Total, net (*)		—		(37,654,762	)

(*) See Note 5.

F-41

d) The following table shows a reconciliation of cash and cash equivalents presented in the statement of financial position with cash and cash equivalents in the cash flow statement as of September 30, 2015 and December 31, 2014:

	Balance at
	9-30-2015 ThCh$		12-31-2014 ThCh$
Cash and cash equivalents (statement of financial position)		85,160,333		132,985,927
Cash and cash equivalents attributable to assets held for sale (*)		—		29,702
Cash and cash equivalents (statement of cash flow)		85,160,333		133,015,629

(*) See Note 13.

e) The following table sets forth cash and cash equivalents that have been received from the sale of shares in combined entities:

Loss of control at Combined Entities	9-30-2015 ThCh$			12-31-2014 ThCh$
Amounts received for the sale of Combined Entities (*)		25,000,000			57,173,142
Amounts in cash and cash equivalents in entities sold		(18,360,347	)		(16,311,571	)
Total net		6,639,653			40,861,571

(*) See Note 2.4.1 and Note 32.

8. OTHER FINANCIAL ASSETS

The detail of other financial assets as of September 30, 2015 and December 31, 2014, is as follows:

Other Financial Assets	Balance at
	Current				Non-current
	9-30-2015 ThCh$		12-31-2014 ThCh$		9-30-2015 ThCh$		12-31-2014 ThCh$
Available-for-sale financial investments – unquoted equity securities or with limited liquidity		—		—		3,001,868		2,670,665
Available-for-sale financial investments – quoted equity securities		—		—		34,358		362,169
Financial assets held to maturity (*)		989,104		948,789		—		—
Hedging derivatives (*)		585,915		508,458		19,787,148		3,695,636
Non-hedging derivatives (*)		5,157		33,882		—		22,002
Total		1,580,176		1,491,129		22,823,374		6,750,472

(*) See Note 22.1.a

The amounts included in “financial assets held to maturity” and “financial assets at fair value with change in profit or loss” correspond mainly to time deposits and other highly liquid investments that are readily convertible to cash and subject to a low risk of changes in value, but that do not fulfill the definition of cash equivalent as defined in Note 3.g.2 (e.g. with maturity over 90 days from time of investment).

F-42

9. TRADE AND OTHER RECEIVABLES

a) The detail of trade and other receivables as of September 30, 2015 and December 31, 2014 is as follows:

Trade and Other Receivables, Gross	Balance at
	9-30-2015				12-31-2014
	Current ThCh$		Non-current ThCh$		Current ThCh$		Non-current ThCh$
Trade and other receivables, gross		614,873,292		6,929,938		607,916,372		7,496,412
Trade receivables, gross		483,889,499		3,153,282		490,553,898		3,318,126
Other receivables, gross		130,983,793		3,776,656		117,362,474		4,178,286

	Balance at
	9-30-2015				12-31-2014
Trade and Other Receivables, Net	Current ThCh$		Non-current ThCh$		Current ThCh$		Non-current ThCh$
Trade and other receivables, net		580,410,561		6,929,938		578,081,205		7,496,412
Trade and other receivables, net		457,589,590		3,153,282		466,647,454		3,318,126
Other receivables, net		122,820,971		3,776,656		111,433,751		4,178,286

There are no significant trade and other receivables balances held by the Combined Group that are not available for its use.

The Combined Group does not have customers with sales representing 10% or more of its total combined revenues for the nine month periods ended September 30, 2015 and 2014.

Refer to Note 10.1 for detailed information on amounts, terms and conditions associated with accounts receivable from related companies.

b) As of September 30, 2015 and December 31, 2014, the balance of past due but not impaired trade receivables is as follows

Trade Receivables Past Due But Not Impaired	Balance at
	9-30-2015		12-31-2014
	ThCh$		ThCh$
Less than three months		41,436,022		39,058,318
Between three and six months		5,799,244		2,624,968
Between six and twelve months		6,805,631		3,693,880
More than twelve months		19,446,795		12,957,133
Total		73,487,692		58,334,299

F-43

c) The reconciliation of changes in the allowance for impairment of trade receivables is as follows:

Trade Receivables Past Due and Impaired	Current and Non-current ThCh$
Balance at January 1, 2014		30,886,147
Increases (decreases) for the year (*)		655,600
Amounts written off		(1,706,580	)
Balance at December 31, 2014		29,835,167
Increases (decreases) for the year (*)		5,027,094
Amounts written off		(399,530	)
Balance at September 30, 2015		34,462,731

(*) See Note 30 for impairment of financial assets.

Write-offs for past due receivables

Past due receivables are written off once all collection procedures and legal proceedings have been exhausted and the debtors’ insolvency has been demonstrated. In our power generation business, this process normally takes at least one year. In our distribution business the process takes at least twenty four months. Overall, the risk of writing off our trade receivables, is limited (see Notes 3.g.3 and 21.5).

10. BALANCES AND TRANSACTIONS WITH RELATED COMPANIES

Related party transactions are performed at current market conditions.

Transactions between the Combined Group and its combined entities and joint ventures have been eliminated on combination and are not itemized in this note.

As of the date of these financial statements, no guarantees have been given or received nor has any allowance for bad or doubtful accounts been recorded with respect to receivable balances for related party transactions.

The controlling shareholder of Enersis Chile is the Italian corporation Enel S.p.A.

F-44

10.1 Balances and transactions with related companies

The balances of accounts receivable and payable between the Combined Group and its non-combined related companies are as follows:

a) Receivables from related companies

Balance at

Current

Non-current

Taxpayer ID Number (RUT)

Company

Country

Relationship

Currency

Description of transaction

Term of transaction

9-30-2015 ThCh$

12-31-2014 ThCh$

9-30-2015 ThCh$

12-31-2014 ThCh$

Foreign

Enel Latinoamérica S.A

Spain

Related to Immediate Parent

CH$

Other services

Less than 90 days

47,244

26,165

—

—

Foreign

Endesa España

Spain

Related to Immediate Parent

CH$

Other services

More than 90 days

87,417

61,852

—

—

96.524.140-K

Empresa Electrica Panguipulli S.A.

Chile

Common Immediate Parent

CH$

Energy sales

Less than 90 days

2,062

273,705

—

—

96.524.140-K

Empresa Electrica Panguipulli S.A.

Chile

Common Immediate Parent

CH$

Tolls

Less than 90 days

66,902

—

—

—

96.880.800-1

Empresa Electrica Puyehue S.A.

Chile

Common Immediate Parent

CH$

Energy sales

Less than 90 days

64

64

—

—

Foreign

Endesa Energía S.A.

Chile

Common Immediate Parent

CH$

Gas sales

Less than 90 days

14,604,841

—

—

—

96.806.130-5

Electrogas S.A.

Chile

Associate

CH$

Dividends

Less than 90 days

—

1,477,177

—

—

76.788.080-4

GNL Quintero S.A.

Chile

Associate

CH$

Energy sales

Less than 90 days

426,240

649,986

—

—

76.418.940-k

GNL Chile S.A.

Chile

Associate

US$

Advance natural gas purchase

Less than 90 days

2,171,745

11,845,926

—

—

76.418.940-k

GNL Chile S.A.

Chile

Associate

US$

Other services

Less than 90 days

—

1,644,650

—

—

76.418.940-k

GNL Chile S.A.

Chile

Associate

US$

Loan

Less than 90 days

1,460,231

549,359

—

—

Foreign

Endesa Generación

Spain

Common Immediate Parent

CH$

Commodity derivatives

Less than 90 days

1,858,367

99,662

—

—

Foreign

Enel Ingegneria e Innovazione

Italy

Common Immediate Parent

CH$

Other services

Less than 90 days

17,974

10,299

—

—

Foreign

Enel Trade S.p.A.

Italy

Common Immediate Parent

CH$

Commodity derivatives

Less than 90 days

42,290

—

—

—

76.126.507-5

Parque Eolico Talinay Oriente SA

Chile

Common Immediate Parent

CH$

Energy sales

Less than 90 days

45,376

21,647

—

—

76.321.458-3

Sociedad Almeyda Solar SpA

Chile

Common Immediate Parent

CH$

Energy sales

Less than 90 days

48,618

—

—

—

76.179.024-2

Parque Eolico Tal Tal S.A.

Chile

Common Immediate Parent

CH$

Energy sales

Less than 90 days

1,750

—

—

—

Foreign

Enel S.p.A.

Italy

Ultimate Parent

CH$

Other services

Less than 90 days

69,389

—

—

—

Foreign

Enel S.p.A.

Italy

Ultimate Parent

Euros

Other services

Less than 90 days

120,040

—

—

—

76.052.206-6

Parque Eolico Valle de los Vientos S.A.

Chile

Common Immediate Parent

CH$

Other services

Less than 90 days

95,355

—

—

—

Foreign

Distrilec

Argentina

Common Immediate Parent

CH$

Other services

Less than 90 days

1,305

1,305

—

—

Foreign

Compañía Distribuidora y Comercializadora de Energía S.A.

Colombia

Common Immediate Parent

CH$

Other services

Less than 90 days

9,380

—

—

—

TBD

Chilectra Américas

Chile

Common Immediate Parent

CH$

Other services

Less than 90 days

60,823

2,394

—

—

F-45

Balance at

Current

Non-current

Taxpayer ID Number (RUT)

Company

Country

Relationship

Currency

Description of transaction

Term of transaction

9-30-2015 ThCh$

12-31-2014 ThCh$

9-30-2015 ThCh$

12-31-2014 ThCh$

TBD

Endesa Américas

Chile

Common Immediate Parent

CH$

Other services

Less than 90 days

23,669

57,775

—

—

Foreign

Emgesa S.A. E.S.P.

Colombia

Common Immediate Parent

CH$

Other services

Less than 90 days

72,560

—

—

—

Foreign

Edegel S.A.A

Peru

Common Immediate Parent

CH$

Other services

Less than 90 days

24,452

—

—

—

Foreign

Empresa de Distribución Eléctrica de Lima Norte S.A.A

Peru

Common Immediate Parent

CH$

Other services

Less than 90 days

73,173

42,355

—

—

99.573.910-0

Chilectra Inversud S.A.

Chile

Common Immediate Parent

CH$

Other services

Less than 90 days

149,609

149,609

—

—

99.573.910-0

Chilectra Inversud S.A.

Chile

Common Immediate Parent

CH$

Mercantile Current Account

Less than 90 days

74,880

—

—

—

TBD

Enersis Américas

Chile

Common Immediate Parent

CH$

Other services

Less than 90 days

123,858

38,720

—

—

Foreign

Enel Italia Servizi SRL

Italy

Common Immediate Parent

CH$

Other services

Less than 90 days

8,144

—

—

—

Foreign

Enel Italia Servizi SRL

Italy

Common Immediate Parent

CH$

Other services

Less than 90 days

166,396

—

—

—

Total

21,954,154

16,952,650

—

—

b) Accounts payable to related companies

Balance at

Current

Non-current

Taxpayer ID Number (RUT)

Company

Country

Relationship

Currency

Description of transaction

Term of transaction

9-30-2015 ThCh$

12-31-2014 ThCh$

9-30-2015 ThCh$

12-31-2014 ThCh$

Foreign

Enel Latinoamérica S.A

Spain

Related to Immediate Parent

CH$

Dividends

Less than 90 days

—

24,842,818

—

—

Foreign

Enel Latinoamérica S.A

Spain

Related to Immediate Parent

CH$

Other services

Less than 90 days

41,794

—

—

—

96.524.140-K

Empresa Electrica Panguipulli S.A.

Chile

Common Immediate Parent

CH$

Energy purchases

Less than 90 days

1,645,457

1,708,804

—

—

96.524.140-K

Empresa Electrica Panguipulli S.A.

Chile

Common Immediate Parent

CH$

Tolls

Less than 90 days

62,988

—

—

—

96.806.130-5

Electrogas S.A.

Chile

Associate

CH$

Tolls

Less than 90 days

75,499

—

—

—

96.806.130-5

Electrogas S.A.

Chile

Associate

CH$

Other services

Less than 90 days

296,865

335,962

—

—

76.418.940-k

GNL Chile S.A.

Chile

Associate

US$

Gas purchases

Less than 90 days

8,536,047

19,808,375

—

—

Foreign

Endesa Generación

Spain

Common Immediate Parent

CH$

Fuel purchases

Less than 90 days

238,981

2,881,032

—

—

Foreign

Endesa Generación

Spain

Common Immediate Parent

CH$

Coal purchases

Less than 90 days

362,432

—

—

—

Foreign

Endesa Generación

Spain

Common Immediate Parent

CH$

Other services

Less than 90 days

22,831

—

—

—

Foreign

Endesa Generación

Spain

Common Immediate Parent

CH$

Commodity derivatives

Less than 90 days

—

1,102,253

—

—

Foreign

Enel Iberoamérica S.R.L

Spain

Parent

CH$

Dividends

Less than 90 days

—

12,509,673

—

—

F-46

Balance at

Current

Non-current

Taxpayer ID Number (RUT)

Company

Country

Relationship

Currency

Description of transaction

Term of transaction

9-30-2015 ThCh$

12-31-2014 ThCh$

9-30-2015 ThCh$

12-31-2014 ThCh$

Foreign

Enel Iberoamérica S.R.L

Spain

Parent

CH$

Other services

Less than 90 days

237,390

��

382,893

—

—

Foreign

Enel Distribuzione

Italy

Common Immediate Parent

CH$

Other services

Less than 90 days

—

73,730

—

—

Foreign

Enel Produzione

Italy

Common Immediate Parent

CH$

Other services

Less than 90 days

—

99,837

—

—

Foreign

Enel Produzione

Italy

Common Immediate Parent

Euros

Other services

Less than 90 days

70,999

—

—

—

Foreign

Enel Produzione

Italy

Common Immediate Parent

CH$

Other services

Less than 90 days

250,861

—

—

—

Foreign

Enel Ingegneria e Innovazione

Italy

Common Immediate Parent

CH$

Other services

Less than 90 days

2,489,027

2,024,190

—

—

76.321.458-3

Sociedad Almeyda Solar Spa

Chile

Common Immediate Parent

CH$

Energy purchases

Less than 90 days

417,236

—

—

—

77.017.930-0

Transmisora Eléctrica de Quillota Ltda.

Chile

Joint Venture

CH$

Other services

Less than 90 days

165,981

157,762

—

—

Foreign

Enel Green Power España SL

Spain

Common Immediate Parent

CH$

Other services

Less than 90 days

—

23,982

—

—

Foreign

Endesa España

Spain

Common Immediate Parent

CH$

Other services

Less than 90 days

303,587

129,492

—

—

76.126.507-5

Parque Eolico Talinay Oriente SA

Chile

Common Immediate Parent

CH$

Energy purchases

Less than 90 days

180

—

—

—

Foreign

Enel Trade S.p.A.

Italy

Common Immediate Parent

CH$

Other services

Less than 90 days

157,301

—

—

—

Foreign

Enel Trade S.p.A.

Italy

Common Immediate Parent

CH$

Commodity derivatives

Less than 90 days

957,995

—

—

—

76.179.024-2

Parque Eolico Tal Tal S.A.

Chile

Common Immediate Parent

CH$

Energy purchases

Less than 90 days

2,081,997

—

—

—

Foreign

Enel S.p.A.

Italy

Ultimate Parent

Euros

Other services

Less than 90 days

787,436

—

—

—

76.052.206-6

Parque Eolico Valle de los Vientos S.A.

Chile

Common Immediate Parent

CH$

Other services

Less than 90 days

1,170,359

—

—

—

Foreign

Emgesa S.A. E.S.P.

Colombia

Common Immediate Parent

CH$

Other services

Less than 90 days

1,478

—

—

—

Foreign

Empresa de Distribución Eléctrica de Lima Norte S.A.A

Peru

Common Immediate Parent

CH$

Other services

Less than 90 days

2,240

—

—

—

Foreign

Endesa Cemsa S.A.

Argentina

Common Immediate Parent

CH$

Other services

Less than 90 days

67,131

58,720

—

—

TBD

Enersis Américas

Chile

Common Immediate Parent

CH$

Loans

Less than 90 days

264,083,578

60,858,956

—

—

TBD

Enersis Américas

Chile

Common Immediate Parent

CH$

Mercantile Current Account

Less than 90 days

50,845,829

39,315,938

—

—

99.573.910-0

Chilectra Inversud S.A.

Chile

Common Immediate Parent

CH$

Mercantile Current Account

Less than 90 days

—

20,775,085

—

—

Foreign

Enel Brasil

Brazil

Common Immediate Parent

CH$

Other services

Less than 90 days

73,065

95,691

—

—

Foreign

Enel Italia Servizi SRL

Italy

Common Immediate Parent

CH$

Other services

Less than 90 days

12,690

—

—

—

Foreign

Enel Italia Servizi SRL

Italy

Common Immediate Parent

Euros

Other services

Less than 90 days

25,252

—

—

—

Total

335,484,506

187,185,193

—

—

F-47

c) Significant transactions and effects on income/expenses:

Transactions with related companies that are not combined and their effects on profit or loss are as follows:

Taxpayer ID Number	Company	Country	Relationship	Description of transaction	9-30-2015 ThCh$			9-30-2014 (Unaudited) ThCh$
Foreign	Endesa Energía S.A.	Spain	Common Immediate Parent	Natural gas sales		14,604,841			—
Foreign	Enel Latinoamérica S.A	Spain	Common Immediate Parent	Other fixed operating expenses		(18,684	)		—
Foreign	Endesa Generación	Spain	Common Immediate Parent	Fuel consumption		(11,641,643	)		(23,300,577	)
Foreign	Endesa Generación	Spain	Common Immediate Parent	Other fixed operating expenses		(23,329	)		—
Foreign	Endesa Generación	Spain	Common Immediate Parent	Commodity derivatives		(2,144,063	)		(974,481	)
76.418.940-k	GNL Chile S.A.	Chile	Associate	Gas consumption		(120,255,826	)		(92,507,654	)
76.418.940-k	GNL Chile S.A.	Chile	Associate	Gas transportation		(39,104,820	)		(29,275,499	)
76.418.940-k	GNL Chile S.A.	Chile	Associate	Other services rendered		54,377			56,042
76.418.940-k	GNL Chile S.A.	Chile	Associate	Other financial income		63,105			46,820
76.788.080-4	GNL Quintero S.A.	Chile	Associate	Energy sales		2,554,154			2,040,026
76.788.080-4	GNL Quintero S.A.	Chile	Associate	Electricity tolls		(57,354	)		—
76.788.080-4	GNL Quintero S.A.	Chile	Associate	Other services rendered		563,204			588,752
96.880.800-1	Empresa Eléctrica Puyehue S.A.	Chile	Common Immediate Parent	Energy purchases		—			(3,805	)
96.880.800-1	Empresa Eléctrica Puyehue S.A.	Chile	Common Immediate Parent	Electricity tolls		—			(12,399	)
96.880.800-1	Empresa Eléctrica Puyehue S.A.	Chile	Common Immediate Parent	Energy sales		—			34,253
96.524.140-K	Empresa Eléctrica Panguipulli S.A.	Chile	Common Immediate Parent	Energy purchases		(7,052,938	)		(6,368,804	)
96.524.140-K	Empresa Eléctrica Panguipulli S.A.	Chile	Common Immediate Parent	Electricity tolls		(215,823	)		(142,361	)
96.524.140-K	Empresa Eléctrica Panguipulli S.A.	Chile	Common Immediate Parent	Other services rendered		285,452			116,012
96.524.140-K	Empresa Eléctrica Panguipulli S.A.	Chile	Common Immediate Parent	Energy sales		200,469			883,600
Foreign	Enel Iberoamérica S.R.L	Spain	Parent	Other fixed operating expenses		—			(743,029	)
Foreign	Enel Iberoamérica S.R.L	Spain	Parent	Other operating income		150,534			—
96.806.130-5	Electrogas S.A.	Chile	Associate	Gas tolls		(2,644,008	)		(2,547,228	)
96.806.130-5	Electrogas S.A.	Chile	Associate	Fuel consumption		(529,741	)		(257,797	)
Foreign	Enel Ingegneria e Innovazione	Italy	Common Immediate Parent	Other services rendered		26,723			25,316
Foreign	Enel Ingegneria e Innovazione	Italy	Common Immediate Parent	Other fixed operating expenses		(394,261	)		(274,444	)
76.652.400-1	Centrales Hidroeléctricas De Aysén S.A.	Chile	Joint Venture	Other services rendered		—			23,891
77.017.930-0	Transmisora Eléctrica de Quillota Ltda.	Chile	Joint Venture	Electricity tolls		(1,083,945	)		(1,021,152	)
Foreign	Endesa España	Spain	Common Immediate Parent	Other operating income		8,811			57,623
Foreign	Endesa España	Spain	Common Immediate Parent	Other fixed operating expenses		(123,819	)		—
Foreign	Enel Trade S.p.A	Italy	Common Immediate Parent	Other fixed operating expenses		(216,437	)		—
Foreign	Enel Trade S.p.A	Italy	Common Immediate Parent	Commodity derivatives		(790,547	)		—
76.321.458-3	Sociedad Almeyda Solar Spa	Chile	Common Immediate Parent	Energy purchases		(2,059,681	)		—
76.321.458-3	Sociedad Almeyda Solar Spa	Chile	Common Immediate Parent	Electricity tolls		(79,566	)		—
76.321.458-3	Sociedad Almeyda Solar Spa	Chile	Common Immediate Parent	Other services rendered		43,983			—
76.321.458-3	Sociedad Almeyda Solar Spa	Chile	Common Immediate Parent	Energy sales		24,526			—
76.052.206-6	Parque Eolico Valle de los Vientos S.A.	Chile	Common Immediate Parent	Energy purchases		(10,919,822	)		—
76.052.206-6	Parque Eolico Valle de los Vientos S.A.	Chile	Common Immediate Parent	Energy sales		360,506			—
76.179.024-2	Parque Eolico Tal Tal S.A.	Chile	Common Immediate Parent	Energy purchases		(19,806,382	)		—
76.179.024-2	Parque Eolico Tal Tal S.A.	Chile	Common Immediate Parent	Energy sales		1,471			—
TBD	Endesa Américas	Chile	Common Immediate Parent	Other services rendered		274,710			247,659
TBD	Chilectra Américas	Chile	Common Immediate Parent	Other services rendered		514,555			491,877
TBD	Enersis Américas	Chile	Common Immediate Parent	Other services rendered		249,703			243,155
TBD	Enersis Américas	Chile	Common Immediate Parent	Other financial expense		(3,911,790	)		(12,827,660	)
Foreign	Empresa de Distribución Eléctrica de Lima Norte S.A.A	Peru	Common Immediate Parent	Other services rendered		197,989			176,935
99.573.910-0	Chilectra Inversud S.A.	Chile	Common Immediate Parent	Other financial income		652			—
99.573.910-0	Chilectra Inversud S.A.	Chile	Common Immediate Parent	Other financial expense		(374,900	)		(580,770	)
Foreign	Endesa Cemsa S.A.	Argentina	Common Immediate Parent	Other fixed operating expenses		—			(129,974	)
Foreign	Enel Produzione	Italia	Common Immediate Parent	Other fixed operating expenses		(206,911	)		—
76.126.507-5	Parque Eolico Talinay Oriente SA	Chile	Common Immediate Parent	Energy sales		93,698			—
76.126.507-5	Parque Eolico Talinay Oriente SA	Chile	Common Immediate Parent	Energy purchases		(383,631	)		(5,028,122	)
				Total		(203,766,458	)		(170,963,795	)

Transfers of short-term funds between related companies are treated as current accounts changes, with variable interest rates based on market conditions used for the monthly balance. The resulting receivable or payable balances are usually at 30 days term, with automatic rollover for the same periods and amortization in line with cash flows.

F-48

10.2 Board of Directors and Key management personnel

Once Enersis Chile S.A. is formed, its Board of Directors will initially consist of seven members who will be elected for an interim term at an Extraordinary Shareholders’ Meeting (“ESM”) to be held on December 18, 2015 to hold office until the first Ordinary Shareholders’ Meeting (“OSM”) to be held in April 2016. At the 2016 OSM, the entire Board of Directors consisting of seven members will be elected to a three-year term. Following the end of their term, they may be re-elected or replaced. If a vacancy occurs in the interim, the Board of Directors will elect a temporary director to fill the vacancy until the next OSM, at which time the entire Board of Directors will be elected to new three-year terms. Its Executive Officers will be appointed by the Board of Directors and hold office at the discretion of the Board.

10.3 Compensation plans linked to share price

There are no compensation plans linked to share price

11. INVENTORIES

The detail of inventories as of September 30, 2015 and December 31, 2014 is as follows:

Classes of Inventories	Balance at
	9-30-2015 ThCh$		12-31-2014 ThCh$
Supplies for Production		17,701,744		22,295,598
Gas		2,925,803		1,407,284
Oil		4,132,420		3,734,834
Coal		10,643,521		17,153,480
Other inventories (*)		17,847,731		21,382,280
Total		35,549,475		43,677,878
Detail of other inventories
(*) Other inventories		17,847,731		21,382,280
Supplies for projects and spare parts		9,573,903		16,747,706
Electrical materials		8,273,828		4,634,574

There are no inventories pledged as security for liabilities.

For the nine months ended September 30, 2015 and 2014, raw materials and consumables recognized as fuel expenses were ThCh$289,424,648 and ThCh$232,011,290, respectively. See Note 28.

As of September 30, 2015 and December 31, 2014, no inventories have been written down due to obsolescence.

12. TAX RECEIVABLES AND PAYABLES

The detail of current tax receivables as of September 30, 2015 and December 31, 2014 is as follows:

Tax Receivables	Balance at
	9-30-2015 ThCh$		12-31-2014 ThCh$
Monthly provisional tax payments		18,439,659		14,510,732
Tax credit for absorbed profits		851,232		9,993,425
Tax credit for training expenses		249,500		240,800
Tax credits from dividends received abroad		—		20,903,182
Other		3,112,342		—
Total		22,652,733		45,648,139

F-49

The detail of current tax payables as of September 30, 2015 and December 31, 2014 is as follows:

Tax Payables	Balance at
	9-30-2015 ThCh$		12-31-2014 ThCh$
Income tax		3,926,861		38,357,866
Total		3,926,861		38,357,866

13. NON-CURRENT ASSETS OR GROUPS OF ASSETS FOR DISPOSAL CLASSIFIED AS HELD FOR SALE

In December 2014, Empresa Nacional de Electricidad S.A. and its combined entity Compañía Eléctrica de Tarapacá SA signed a contract to sell all their shares in Sociedad Concesionaria Túnel El Melón S.A. to Temsa Private Investment Fund. Such contract established a number of conditions, which were not fulfilled at the end of 2014, preventing the closure of the sale. The sale was finalized on January 9, 2015.

Túnel El Melón S.A is a private corporation whose purpose is the construction, maintenance and operation of the public work called the El Melón Tunnel and the provision of ancillary services authorized by the Ministry of Public Works (MOP).

El Melón Tunnel is an alternative route to the road that climbs the El Melon pass, which is located between 126 and 132 kilometers north of Santiago on Route 5. This is the main highway linking the country from Arica to Puerto Montt.

As described in Note 3.k), non-current assets and groups of assets held for sale have been recorded at the lower of their carrying amount and fair value less costs of disposal.

The main items of assets, liabilities and cash flows held for sale as of December 31, 2014 are as follows:

	Balance 12/31/2014
	ThCh$
CURRENT ASSETS
Cash and cash equivalents		29,702
Other current non-financial assets		81,275
Trade and other current receivables		758,645
Current tax assets		1,400
TOTAL CURRENT ASSETS		871,022
NON-CURRENT ASSETS
Intangible assets other than goodwill		4,404,615
Property, plant and equipment		81,432
Deferred tax assets		2,621,894
TOTAL NON-CURRENT ASSETS		7,107,941
TOTAL ASSETS		7,978,963
CURRENT LIABILITIES
Other current financial liabilities		3,072,179
Trade and other current payables		495,235
Other current non-financial liabilities		131,030
TOTAL CURRENT LIABILITIES		3,698,444
NON-CURRENT LIABILITIES
Other non-current financial liabilities		1,660,254
Non-current provisions for employee benefits		102,423
Other non-current non-financial liabilities		27,026
TOTAL NON-CURRENT LIABILITIES		1,789,703
TOTAL LIABILITIES		5,488,147

F-50

	Balance 12/31/2014
	ThCh$
Summary of net cash flow
Net cash flows from (used in) operating activities		9,045,775
Net cash flows from (used in) investment activities		(5,604,740	)
Net cash flows from (used in) financing activities		(3,450,774	)
Net increase (decrease) in cash and cash equivalents before effect of exchange rate changes		(9,739	)
Effect of exchange rate changes on cash and cash equivalents		—
Net increase (decrease) in cash and cash equivalents		(9,739	)
Cash and cash equivalents at beginning of period		39,440
Cash and cash equivalents at end of period		29,702

F-51

14. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

14.1. Investments accounted for using the equity method

a. The following tables present the changes in investments in combined associates and joint ventures accounted for using the equity method as of September 30, 2015 and December 31, 2014:

Taxpayer ID Number	Changes in Investments in Combined Associates	Relationship	Country	Functional Currency	Ownership interest			Balance at 01/01/2015 ThCh$		Additions ThCh$		Share of Profit (Loss) ThCh$			Dividends declared ThCh$			Foreign Currency Translation ThCh$		Other comprehensive income ThCh$		Other increases (decreases) ThCh$			Balance at 9/30/2015 ThCh$
96,806,130-5	Electrogas S.A.	Associate	Chile	U.S. dollar		42.50	%		10,777,659		—		3,874,850			(2,914,348	)		1,337,643		151,687		—			13,227,491
76,788,080-4	GNL Quintero S.A.	Associate	Chile	U.S. dollar		20.00	%		15,198,935		—		3,450,923			(3,262,701	)		1,874,549		—		—			17,261,706
76,418,940-k	GNL Chile S.A.	Associate	Chile	U.S. dollar		33.33	%		1,818,168		—		903,889						357,883		—		—			3,079,940
76,652,400-1	Centrales Hidroeléctricas De Aysén S.A.	Joint Venture	Chile	Chilean Peso		51.00	%		6,144,557		2,295,000		(1,800,997	)		—			—		—		—			6,638,560
77,017,930-0	Transmisora Eléctrica de Quillota Ltda.	Joint Venture	Chile	Chilean Peso		50.00	%		6,426,004		—		1,054,225			—			—		—		—			7,480,229
						TOTAL			40,365,323		2,295,000		7,482,890			(6,177,049	)		3,570,075		151,687		—			47,687,926
Taxpayer ID Number	Changes in Investments in Combined Associates	Relationship	Country	Functional Currency	Ownership interest			Balance at 01/01/2014 ThCh$		Additions ThCh$		Share of Profit (Loss) ThCh$			Dividends declared ThCh$			Foreign Currency Translation ThCh$		Other comprehensive income ThCh$		Other increases (decreases) ThCh$			Balance at 12/31/2014 ThCh$
96,806,130-5	Electrogas S.A.	Associate	Chile	U.S. dollar		42.50	%		9,682,324		—		4,456,124			(4,239,280	)		847,016		31,475		—			10,777,659
76,788,080-4	GNL Quintero S.A.	Associate	Chile	U.S. dollar		20.00	%		4,797,508		—		3,541,883			(6,897,599	)		311,747		13,445,396		—			15,198,935
76,418,940-k	GNL Chile S.A.	Associate	Chile	U.S. dollar		33.33	%		559,615		—		1,099,143			—			159,410		—		—			1,818,168
76,652,400-1	Centrales Hidroeléctricas De Aysén S.A. (2)	Joint Venture	Chile	Chilean Peso		51.00	%		69,684,864		3,315,000		(66,855,307	)		—			—		—		—			6,144,557
77,017,930-0	Transmisora Eléctrica de Quillota Ltda.	Joint Venture	Chile	Chilean Peso		50.00	%		6,073,897		—		352,107			—			—		—		—			6,426,004
76,014,570-k	Inversiones GasAtacama Holding Ltda. (1)	Joint Venture	Chile	U.S. dollar		50.00	%		123,627,968		—		3,053,468			—			8,919,246		—		(135,600,682	)		—
						TOTAL			214,426,176		3,315,000		(54,352,582	)		(11,136,879	)		10,237,419		13,476,871		(135,600,682	)		40,365,323

(1) In April 2014, the company Inversiones GasAtacama Holding Ltda. became a combined entity of the Combined Group using the global integration method (see Notes 2.4.1 and 5).

(2) The loss recognized during 2014 includes a provision for impairment of ThCh$69,066,857 as a result of uncertainty about the recoverability of this investment (see Note 36.5).

F-52

b. Additional financial information on investments in associated companies and joint ventures

14.2. Investments with significant influence

The following tables show financial information as of September 30, 2015 and December 31, 2014 from the financial statements of the investments in associates where the Combined Group has significant influence:

Investments with Significant Influence	September 30, 2015
	% Ownership interest Direct/ Indirect			Current assets ThCh$		Non- current assets ThCh$		Current liabilities ThCh$		Non- current liabilities ThCh$		Revenue ThCh$		Expenses ThCh$			Profit (Loss) ThCh$		Other Comprehensive Income ThCh$		Comprehensive income ThCh$
GNL Chile S.A		33.33	%		83,308,612		78,426		69,765,943		4,380,353		545,158,354		(542,446,416	)		2,711,938		1,073,757		3,785,695
GNL Quintero S.A		20.00	%		133,435,149		674,630,034		11,800,730		709,955,923		97,683,633		(80,429,018	)		17,254,615		9,372,746		26,627,361
Electrogas S.A.		42.50	%		6,414,662		47,054,671		5,058,199		17,287,627		17,800,953		(7,831,263	)		9,969,690		3,504,305		13,473,995
Investments with Significant Influence	December 31, 2014
	% Ownership interest Direct/ Indirect			Current assets ThCh$		Non- current assets ThCh$		Current liabilities ThCh$		Non- current liabilities ThCh$		Revenue ThCh$		Expenses ThCh$			Profit (Loss) ThCh$		Other Comprehensive Income ThCh$		Comprehensive income ThCh$
GNL Chile S.A		33.33	%		73,425,419		81,983		64,329,604		3,723,224		732,138,386		(728,840,589	)		3,297,797		478,277		3,776,074
GNL Quintero S.A		20.00	%		98,325,654		597,812,711		20,036,542		600,107,009		117,435,890		(99,726,467	)		17,709,423		68,785,714		86,495,137
Electrogas S.A.		42.50	%		6,085,889		43,289,210		10,076,915		13,938,983		19,635,597		(9,150,599	)		10,484,998		2,067,038		12,552,036

Appendix 3 to these combined financial statements provides information on the main activities of our associates and the ownership interest that the Combined Group holds in them.

None of our associates have published price quotations.

14.3. Joint ventures

The following tables present information from the financial statements as of September 30, 2015 and December 31, 2014 on the main joint ventures:

	Centrales Hidroeléctricas de Aysén S.A.						Transmisora Eléctrica de Quillota Ltda.
% Ownership	51.0% 9-30-2015 ThCh$			51.0% 12-31-2014 ThCh$			50.0% 9-30-2015 ThCh$			50.0% 12-31-2014 ThCh$
Total current assets		365,973			485,966			4,870,520			4,426,445
Total non-current assets		15,159,321			15,026,706			12,228,334			11,420,593
Total current liabilities		2,451,497			3,419,214			463,983			1,159,095
Total non-current liabilities		56,685			45,348			1,674,416			1,835,937
Cash and cash equivalent		251,506			319,670			4,457,803			3,930,814
Revenues		—			—			2,099,517			2,672,950
Depreciation and amortization expense		—			(52,978	)		(529,169	)		(738,927	)
Impairment losses		—			(126,657,707	)		—			—
Interest income		16,068			479,518			1,652,413			88,597
Income tax expense		—			—			(496,978	)		(671,727	)
Profit (loss)		(3,530,997	)		(131,088,876	)		2,108,449			704,214
Other comprehensive income		—			—			—			—
Comprehensive income		(3,530,997	)		(131,088,876	)		2,108,449			704,214

c. There are no significant commitments and contingencies, or restrictions on funds transfers to its owners in associates and joint ventures.

F-53

15. INTANGIBLE ASSETS OTHER THAN GOODWILL

The following table presents intangible assets as of September 30, 2015 and December 31, 2014:

Intangible Assets, Net	9-30-2015 ThCh$			12-31-2014 ThCh$
Intangible Assets, Net		37,725,489			36,525,522
Easements and water rights		14,476,100			14,692,984
Computer software		22,781,572			21,651,862
Other identifiable intangible assets		467,817			180,676
Intangible Assets, Gross	9-30-2015 ThCh$			12-31-2014 ThCh$
Intangible Assets, Gross		86,950,083			82,119,207
Easements and water rights		16,465,850			17,106,353
Computer software		63,554,771			58,579,846
Other identifiable intangible assets		6,929,462			6,433,008
Intangible Assets, Amortization and Impairment	9-30-2015 ThCh$			12-31-2014 ThCh$
Accumulated Amortization and Impairment, Total		(49,224,594	)		(45,593,685	)
Identifiable intangible assets		(49,224,594	)		(45,593,685	)
Easements and water rights		(1,989,750	)		(2,413,369	)
Computer software		(40,773,199	)		(36,927,984	)
Other identifiable intangible assets		(6,461,645	)		(6,252,332	)

The reconciliations of the carrying amounts of intangible assets at September 30, 2015 and December 31, 2014 are as follows:

September 30, 2015

Changes in Intangible Assets	Easements ThCh$			Concessions ThCh$		Computer Software ThCh$			Other Identifiable Assets, Net ThCh$			Intangible Assets, Net ThCh$
Opening balance 01/01/2015		14,692,984			—		21,651,862			180,676			36,525,522
Changes in identifiable intangible assets
Increases other than from business combinations		109,691			—		3,850,728			—			3,960,419
Increase (decrease) from exchange differences, net		—			—		359,401			(51,402	)		307,999
Amortization (1)		—			—		(3,255,339	)		(19,300	)		(3,274,639	)
Increases (decreases) from transfers and other changes		(246,573	)		—		174,920			357,843			286,190
Increases (decreases) from transfers		—			—		55,625			—			55,625
Increases (decreases) from other changes		(246,573	)		—		119,295			357,843			230,565
Disposals and removals from service		(80,002	)		—		—			—			(80,002	)
Disposals		(80,002	)		—		—			—			(80,002	)
Removal from service		—			—		—			—			—
Decreases classified as held for sale		—			—		—			—			—
Total changes in identified intangible assets		(216,884	)		—		1,129,710			287,141			1,199,967
Closing balance 9/30/2015		14,476,100			—		22,781,572			467,817			37,725,489

F-54

December 31, 2014

Changes in Intangible Assets	Easements ThCh$			Concessions ThCh$			Computer Software ThCh$			Other Identifiable Assets, Net ThCh$			Intangible Assets, Net ThCh$
Opening balance 01/01/2014		14,517,212			6,951,508			15,991,138			110,947			37,570,805
Changes in identifiable intangible assets
Increases (decreases) other than from business combinations		(19,567	)		—			8,568,249			—			8,548,682
Increase (decrease) from exchange differences, net		—			—			6,303			4,577			10,880
Amortization (1)		—			(2,546,894	)		(3,336,876	)		(7,207	)		(5,890,977	)
Increases (decreases) from transfers and other changes		195,339			1			425,897			72,359			693,596
Increases (decreases) from transfers		—			1			—			(1	)		—
Increases (decreases) from other changes		195,339			—			426,897			72,360			693,596
Disposals and removals from service		—			—			(2,849	)		—			(2,849	)
Disposals		—			—			—			—			—
Removal from service		—			—			(2,849	)		—			(2,849	)
Decreases classified as held for sale (2)		—			(4,404,615	)		—			—			(4,404,615	)
Total changes in identified intangible assets		175,772			(6,951,508	)		5,660,724			69,729			(1,045,283	)
Closing balance 12/31/2014		14,692,984			—			21,651,862			180,676			36,525,522

(1) See Note 30.

(2) See Note 13.

According to the Combined Group’s management estimates and projections, the expected future cash flows attributable to intangible assets allow the recovery of the carrying amount of these assets recorded as of September 30, 2015 (See Note 3.e).

F-55

16. GOODWILL

The following table shows goodwill by the Cash-Generating Unit or group of Cash-Generating Units to which it belongs and changes as of September 30, 2015 and December 31, 2014:

Company	Cash Generating Unit	Opening Balance 1/1/2014 ThCh$		Increase/ (Decrease) ThCh$		Foreign Currency Translation ThCh$		Closing Balance 12/31/2014 ThCh$		Foreign Currency Translation ThCh$		Closing Balance 9/30/2015 ThCh$
Empresa Eléctrica de Colina Ltda.	Empresa Eléctrica de Colina Ltda.		2,240,478		—		—		2,240,478		—		2,240,478
Compañía Eléctrica Tarapaca S.A.	Generación Chile—SING		4,656,105		—		—		4,656,105		—		4,656,105
Chilectra S.A.	Chilectra S.A.		128,374,362		—		—		128,374,362		—		128,374,362
Empresa Nacional de Electricidad S.A	Generación Chile—SIC		731,782,459		—		—		731,782,459		—		731,782,459
Inversiones GasAtacama Holding Ltda. (1)	Inversiones GasAtacama Holding		—		18,737,737		1,466,514		20,204,251		—		20,204,251
Total			867,053,404		18,737,737		1,466,514		887,257,655		—		887,257,655

(1) See Notes 2.4.1 and 5.

According to the Enersis management’s estimates and projections, the expected future cash flows projections attributable to the Cash-Generating Units or groups of Cash-Generating Units, to which the acquired goodwill has been allocated, allow recovery of its carrying amount as of September 30, 2015 (See Note 3.e).

The origin of the goodwill is detailed below:

1.- Empresa Eléctrica de Colina Ltda.

On September 30, 1996, Chilectra S.A. acquired 100% of the company Empresa Eléctrica de Colina Ltda. from the investment company Saint Thomas S.A., which is neither directly nor indirectly related to Chilectra S.A.

2.- Empresa Eléctrica Pangue S.A.

On July 12, 2002, Endesa Chile acquired 2.51% of the shares of Empresa Eléctrica Pangue S.A. through a put option held by the minority shareholder Internacional Finance Corporation (IFC).

On May 2, 2012, Empresa Eléctrica Pangue S.A. merged with Compañía Eléctrica San Isidro S.A.; with the latter company being the surviving entity.

3.- Compañía Eléctrica San Isidro S.A.

On August 11, 2005, Endesa Chile acquired the shares of company Inversiones Lo Venecia Ltda., whose only asset was a 25% interest in the company San Isidro S.A. (minority shareholder purchase). On September 1, 2013, Compañía Eléctrica San Isidro S.A. was merged with Endesa Eco S.A., being the latter the surviving entity. Subsequently, on November 1, 2013, Endesa Eco S.A. was merged with Compañía Eléctrica Tarapacá, being the latter the surviving entity.

F-56

4.- Chilectra S.A.

In November 2000, Enersis S.A. acquired an additional 25.4% interest in Chilectra S.A. through a purchasing power of attorney in a public bidding process, reaching a 99.99% stake in the company.

5.- Empresa Nacional de Electricidad S.A.

On May 11, 1999, Enersis S.A. acquired an additional 35% in Endesa Chile in a public bidding process on the Santiago Stock Exchange and by buying shares in the U.S. (30% and 5%, respectively), reaching a 60% interest in the generation company.

6.- Inversiones GasAtacama Holding Limitada.

On April 22, 2014, Endesa Chile acquired the remaining 50% equity interest in Inversiones GasAtacama Holding Limitada that was owned at that time by Southern Cross Latin America Private Equity Fund III L.P (see Notes 2.4.1 and 5).

17. PROPERTY, PLANT AND EQUIPMENT -

The following table shows property, plant and equipment as of September 30, 2015 and December 31, 2014:

Classes of Property, Plant and Equipment, Net	9-30-2015 ThCh$		12-31-2014 ThCh$
Property, Plant and Equipment, Net		3,349,115,618		3,283,760,776
Construction in progress		524,171,727		526,367,579
Land		71,363,995		61,050,488
Buildings		13,827,814		10,149,650
Plant and equipment		2,701,054,113		2,626,471,521
Fixtures and fittings		18,266,957		38,649,832
Other property, plant and equipment under financial lease		20,431,012		21,071,706

Classes of Property, Plant and Equipment, Gross	9-30-2015 ThCh$		12-31-2014 ThCh$
Property, Plant and Equipment, Gross		6,234,020,347		6,080,079,331
Construction in progress		524,171,727		526,367,579
Land		71,363,995		61,050,488
Buildings		27,516,555		20,219,104
Plant and equipment		5,524,917,539		5,362,568,352
Fixtures and fittings		57,290,500		81,113,777
Other property, plant and equipment under financial lease		28,760,031		28,760,031

Classes of Accumulated Depreciation and Impairment in Property, Plant and Equipment	9-30-2015 ThCh$			12-31-2014 ThCh$
Total Accumulated Depreciation and Impairment in Property, Plant and Equipment		(2,884,904,729	)		(2,796,318,555	)
Buildings		(13,688,741	)		(10,069,454	)
Plant and equipment		(2,823,863,426	)		(2,736,096,831	)
Fixtures and fittings		(39,023,543	)		(42,463,945	)
Other property, plant and equipment under financial lease		(8,329,019	)		(7,688,325	)

F-57

The detail and changes in property, plant, and equipment during the nine months ended September 30, 2015 and year ended December 31, 2014 are as follows:

Changes in 2015		Construction in progress ThCh$			Land ThCh$			Buildings, net ThCh$			Plant and Equipment, net ThCh$			Fixtures and Fittings, net ThCh$			Other Property, Plant and Equipment under Financial Lease, Net ThCh$			Property, Plant and Equipment, Net ThCh$
Opening balance January 1, 2015			526,367,579			61,050,488			10,149,650			2,626,471,521			38,649,832			21,071,706			3,283,760,776
	Increases other than from business combinations		155,261,350			—			—			—			1,829,737			—			157,091,087
	Increases (decreases) from exchange differences, net		(197,568	)		9,404			17,962			1,844,662			(388,011	)		—			1,286,449
	Depreciation (2)		—			—			(536,429	)		(105,366,952	)		(2,518,423	)		(695,010	)		(109,116,814	)
	Reversals of impairment losses recognized in profit or loss (2)		—			—			—			109,557			—			—			109,557
	Increases (decreases) from transfers and other changes		(153,405,336	)		317,427			22,987			154,980,041			1,235,243			(3,150,362	)		—
	Increases (decreases) for transfers		(153,405,336	)		317,427			22,987			154,980,041			1,235,243			(3,150,362	)		—
	Increases (decreases) from transfers from constructions in progress		(153,405,336	)		317,427			22,987			154,980,041			1,235,243			(3,150,362	)		—
	Increases (decreases) from other changes		—			—			—			—			—			—			—
	Disposals and removals of service		(289,393	)		(59,737	)		—			(3,495,241	)		(165,783	)		—			(4,010,154	)
	Disposals		—			—			—			—			—			—			—
	Removals		(289,393	)		(59,737	)		—			(3,495,241	)		(165,783	)		—			(4,010,154	)
	Other increases (decreases)		(3,564,905	)		10,046,413			4,173,644			26,510,525			(20,375,638	)		3,204,678			19,994,717
	Total changes		(2,195,852	)		10,313,507			3,678,164			74,582,592			(20,382,875	)		(640,694	)		65,354,842
Closing balance September 30, 2015			524,171,727			71,363,995			13,827,814			2,701,054,113			18,266,957			20,431,012			3,349,115,618

F-58

Changes in 2014		Construction in progress ThCh$			Land ThCh$			Buildings, net ThCh$			Plant and Equipment, net ThCh$			Fixtures and Fittings, net ThCh$			Other Property, Plant and Equipment under Financial Lease, Net ThCh$			Property, Plant and Equipment, Net ThCh$
Opening balance January 1, 2014			425,836,637			57,582,247			9,971,705			2,348,545,639			16,608,442			21,925,965			2,880,470,635
	Increases other than from business combinations		318,751,963			—			—			3,988			1,796,610			—			320,552,561
	Acquisitions through business combinations (1)		10,802,165			3,216,432			—			171,934,310			13,707,484			—			199,660,391
	Increases (decreases) from exchange differences, net		1,690,772			466,822			—			33,352,192			1,553,738			—			37,063,524
	Depreciation (2)		—			—			(481,737	)		(137,325,080	)		(2,324,987	)		(854,258	)		(140,986,062	)
	Impairment losses recognized in profit or loss (2)		—			—			—			(13,769,033	)		—			—			(13,769,033	)
	Increases (decreases) from transfers and other changes		(227,696,726	)		74			659,682			224,759,203			2,277,767			—			—
	Increases (decreases) for transfers		(227,696,726	)		74			659,682			224,759,203			2,277,767			—			—
	Increases (decreases) from transfers from constructions in progress		(227,696,726	)		74			659,682			224,759,203			2,277,767			—			—
	Increases (decreases) from other changes																				—
	Disposals and removals of service		—			—			—			(392,778	)		(35,900	)		—			(428,678	)
	Disposals		—			—			—			—			—			—			—
	Removals		—			—			—			(392,778	)		(35,900	)		—			(428,678	)
	Other increases (decreases)		(3,017,232	)		(215,087	)		—			(636,920	)		5,066,678			(1	)		1,197,438
	Total changes		100,530,942			3,468,241			177,945			277,925,882			22,041,390			(854,259	)		403,290,141
Closing balance December 31, 2014			526,367,579			61,050,488			10,149,650			2,626,471,521			38,649,832			21,071,706			3,283,760,776

(1) See Note 2.4.1 and 5.

(2) See Note 30.

Additional information on property, plant and equipment, net

a) Main investments

Major additions to property, plant and equipment are investments in operating plants and new projects amounting to ThCh$157,091,087 and ThCh$320,552,561 as of September 30, 2015 and December 31, 2014, respectively. In the generation business the main investments include maintenance to plants of ThCh$101,148,732 and ThCh$253,740,453 as of September 30, 2015 and December 31, 2014, respectively. In the distribution business, major investments are network extensions and investments to optimize their operation, in order to improve the efficiency and quality of service, amounting to ThCh$43,206,709 and ThCh$62,680,946 as of September 30, 2015 and December 31, 2014, respectively.

F-59

b) Finance leases

As of September 30, 2015 and December 31, 2014, property, plant and equipment includes ThCh$20,431,012 and ThCh$21,071,706, respectively, in leased assets classified as finance leases.

The present value of future lease payments derived from these finance leases is as follows:

	9-30-2015						12-31-2014
	Gross ThCh$		Interest ThCh$		Present Value ThCh$		Gross ThCh$		Interest ThCh$		Present Value ThCh$
Less than one year		2,794,878		1,019,508		1,775,370		2,427,000		956,437		1,470,563
From one to five years		16,769,280		2,951,463		13,817,817		9,708,000		2,270,533		7,437,467
More than five years		5,674,204		505,280		5,168,924		11,601,579		1,386,143		10,215,436
Total		25,238,362		4,476,251		20,762,111		23,736,579		4,613,113		19,123,466

Leased assets primarily relate to a lease agreement for Electric Transmission Lines and Installations (Ralco-Charrúa 2X220 KV) entered into between Endesa Chile and Abengoa Chile S.A. The lease agreement has a 20-year maturity and bears interest at an annual rate of 6.5%.

c) Operating leases

The combined statements of income for the nine months ended September 30, 2015 and 2014 include ThCh$2,760,267 and ThCh$6,466,979, respectively, corresponding to operating lease contracts for material assets in operation.

As of September 30, 2015 and December 31, 2014, the total future lease payments under those contracts are as follows:

	9-30-2015 ThCh$		12-31-2014 ThCh$
Less than one year		6,856,644		8,566,303
From one to five years		17,178,624		16,634,394
More than five years		10,498,589		10,064,425
Total		34,533,857		35,265,122

d) Other information

i) As of September 30, 2015 and December 31, 2014, the Combined Group had contractual commitments for the acquisition of property, plant and equipment amounting to ThCh$257,258,029 and ThCh$170,911,479, respectively.

ii) As of September 30, 2015 and December 31, 2014, the Combined Group does not have property, plant and equipment pledged as security for liabilities.

iii) The Combined Group and its combined entities have insurance policies for all risks, earthquake and machinery breakdown and damages for business interruption with a €1,000 million limit in the case of generating companies and a €50 million limit for distribution companies, including business interruption coverage. Additionally, the Combined Group has Civil Liability insurance to meet claims from third parties with a €500 million limit. The insurance premiums associated with these policies are presented proportionally for each company in the caption “Prepaid expenses”.

iv) The situation of certain assets of our combined entity Endesa Chile has changed, primarily works and infrastructure for facilities built to support power generation in the SIC grid in 1998, due primarily to the installation in the SIC of new thermoelectric plants, the arrival of LNG, and new projects that will be

F-60

starting up soon. This has resulted in a new supply configuration for the upcoming years, in which it is expected that these facilities will not need to be used. Accordingly, in 2009, an impairment loss of ThCh$43,999,600 was recognized for these assets, which is still in effect.

v) On October 16, 2012, Endesa Chile began the collection process on all of the bank performance bonds guaranteeing compliance with the works and correct, timely execution of these works as specified in the agreement “Bocamina Thermal Plant Expansion Project”, contract ACP-003.06. This is a turnkey project for a 350 MW coal-fired thermal generation plant (“the contract”) signed on July 25, 2007 between Empresa Nacional de Electricidad S.A. (“the owner”) and the consortium consisting of (i) the Chilean company Ingeniería y Construcción Tecnimont Chile y Compañía Limitada; (ii) the Italian company Tecnimont SpA; (iii) the Brazilian company Tecnimont do Brasil Construcao e Administracao de Projetos Ltda; (iv) the Slovakian company Slovenske Energeticke Strojarne a.s. (“SES”); and (v) the Chilean company Ingeniería y Construcción SES Chile Limitada; (all referred to collectively as “the Contractor” or “the Consortium”).

These performance bonds amounted to US$74,795,164.44 and UF 796,594.29 (approximately US$38,200,000). As of December 31, 2012 it was collected US$93,992,554 of these bonds and currently it is still pending to collect US$18,940,295, equivalent to ThCh$11,492,024.

Collection made on these bank performance bonds reduced the cost overruns incurred by the company due to breach of contract; they were capitalized into the Project.

On October 17, 2012, Endesa Chile filed an arbitration request with the International Chamber of Arbitration of Paris in order to enforce the rights conferred upon it under the Contract. On December 29, 2014, Endesa’s Board of Directors accepted and approved an agreement with the consortium that finalizes the arbitration process and grants full reciprocal settlement of the obligations. Consequently, at the end of 2014, Endesa Chile recognized a provision for US$125 million (ThCh$75,843,750 approximately) that represents an increase investment in property, plant and equipment. Finally, the payment was made on April 6, 2015.

vi) At the end of 2012, our combined entity Compañía Eléctrica Tarapacá S.A. recognized an impairment loss for ThCh$12,578,098, an amount still in effect, to adjust the carrying amount of its Property, plant and equipment to their recoverable amount (see Note 3.e).

vii) At the end of 2014, our combined entity Endesa Chile SA, recognized an impairment loss provision for ThCh$12,581,947 related to the Punta Alcalde project. This impairment loss arises because the current definition of the project is not fully aligned with the strategy that the Combined Group is reformulating, particularly with regard to technological leadership, and to community and environmental sustainability. Endesa Chile has decided to suspend the project as its profitability is still unclear (see Note 3.e).

F-61

18. INVESTMENT PROPERTY

The detail and changes in investment property during the nine months ended September 30, 2015 and year ended December 31, 2014, are as follows:

	Investment Properties, Gross			Accumulated Depreciation, Amortization and Impairment			Investment Properties, Net
Investment Properties	ThCh$			ThCh$			ThCh$
Balance at January 1, 2014		47,047,605			(2,170,556	)		44,877,049
Additions		1,463,242			—			1,463,242
Disposals		(1,806,675	)		—			(1,806,675	)
Disposals related to the sale of combined entities (1)		(36,040,698	)		—			(36,040,698	)
Depreciation expense		—			(30,483	)		(30,483	)
Impairment losses recognized in income statement		—			52,127			52,127
Balance at December 31, 2014		10,663,474			(2,148,912	)		8,514,562
Disposals		(1,724,812	)		1,387,042			(337,770	)
Depreciation expense		—			(20,189	)		(20,189	)
Impairment reversals recognized in income statement		—			—			—
Balance at September 30, 2015		8,938,662			(782,059	)		8,156,603

(1) See Note 32.

The sale prices of investment properties disposed of during the nine months ended September 30, 2015 and 2014 were ThCh$1,800,933 and ThCh$6,665,449, respectively.

-Fair value measurement and hierarchy

As of September 30, 2015, the fair value of the Combined Group’s investment properties was ThCh$12,272,521 which was determined using independent appraisals.

The fair value measurement for these investment properties was categorized as Level 2. (See Note 3h)

For the nine months ended September 30, 2015 and 2014, the detail of income and expenses from investment properties is as follows:

	Balance at
	9-30-2015			9-30-2014 (Unaudited)
Income and expense from investment properties	ThCh$			ThCh$
Rental income from investment properties		121,919			223,750
Income from the sale of investment properties (*)		1,800,933			6,665,448
Direct operating expense from investment properties generating rental income		(118,283	)		(166,924	)
Direct operating expense from investment properties not generating rental income (*)		(337,770	)		(1,378,073	)
Total		1,466,799			5,344,201

(*) See Note 32.

The Combined Group has no repair, maintenance, acquisition, construction or development agreements that represent future obligations for the Combined Group as of September 30, 2015 and December 31, 2014.

F-62

The Combined Group has insurance policies to cover operational risks of its investment properties, as well as to cover legal claims against the Combined Group that could potentially arise from exercising its business activity. Management considers that the insurance policy coverage is sufficient against the risks involved.

19. DEFERRED TAXES

a. The origination and changes in deferred tax assets and liabilities as of September 30, 2015 and December 31, 2014 are as follows:

Deferred Tax Assets		Deferred Tax Assets Relating To																		Deferred Tax Assets
		Accumulated depreciation			Provisions			Post- employment benefit obligations			Revaluation of financial instruments			Tax loss carryforwards			Other
		ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$
Opening balance January 1, 2015			190,823			5,798,306			162,365			—			4,851,839			1,961,762			12,965,095
	Increase (decrease) in profit or loss		4,395,198			7,233,099			(570,699	)		—			6,900,373			(2,410,942	)		15,547,029
	Increase (decrease) in other comprehensive income		—			—			628,836			—			—			—			628,836
	Foreign currency translation		—			—			—			—			—			—			—
	Other increases (decreases)		462,024			(10,170,118	)		73,354			—			(191,991	)		935,324			(8,891,407	)
Closing balance September 30, 2015			5,048,045			2,861,287			293,856			—			11,560,221			486,144			20,249,553
Deferred Tax Assets		Deferred Tax Assets Relating To																		Deferred Tax Assets
		Accumulated depreciation			Provisions			Post- employment benefit obligations			Revaluation of financial instruments			Tax loss carryforwards			Other
		ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$
Opening balance January 1, 2014			1,409,000			2,471,333			—			—			1,710,288			5,660,926			11,251,547
	Increase (decrease) in profit or loss		(1,110,934	)		3,894,698			(1,218,281	)		(1,716	)		6,297,437			6,750,316			14,611,520
	Increase (decrease) in other comprehensive income		—			—			4,488,450			1,716			—			(1,084	)		4,489,082
	Acquisitions through business combinations under common control (1)		—			879,716			—			—			537,932			974,883			2,392,531
	Disinvestment through selling businesses		(107,241	)		(34,403	)		—			—			(329,845	)		(5,816,292	)		(6,287,781	)
	Foreign currency translation		—			361,135			—			—			—			155,705			516,840
	Transfers to (from) Non-current assets and disposals group held for sale		—			(29,583	)		(1,761	)		—			(1,448,281	)		(1,142,270	)		(2,621,895	)
	Other increases (decreases)		(2	)		(1,744,590	)		(3,106,043	)		—			(1,915,692	)		(4,620,422	)		(11,386,749	)
Closing balance December 31, 2014			190,823			5,798,306			162,365			—			4,851,839			1,961,762			12,965,095

Deferred Tax Liabilities		Deferred Tax Liabilities Relating to														Deferred Tax Liabilities
		Accumulated depreciation			Provisions			Post- employment benefit obligations			Revaluation of financial instruments		Other
		ThCh$			ThCh$			ThCh$			ThCh$		ThCh$			ThCh$
Opening balance January 1, 2015			252,995,247			379			16,498			—		2,210,542			255,222,666
	Increase (decrease) in profit or loss		(1,711,840	)		(264	)		3,019			—		(1,499,107	)		(3,208,192	)
	Increase (decrease) in other comprehensive income		—			—			(894	)		—		(199,530	)		(200,424	)
	Foreign currency translation		20,571			—			—			—		—			20,571
	Other increases (decreases)		(24,550,391	)		—			(18,466	)		—		363,132			(24,205,725	)
Closing balance September 30, 2015			226,753,587			115			157			—		875,037			227,628,896

F-63

Deferred Tax Liabilities		Deferred Tax Liabilities Relating to														Deferred Tax Liabilities
		Accumulated depreciation			Provisions		Post- employment benefit obligations			Revaluation of financial instruments			Other
		ThCh$			ThCh$		ThCh$			ThCh$			ThCh$			ThCh$
Opening balance January 1, 2014			172,945,228			—		20,818			3,933,526			1,649			176,901,221
	Increase (decrease) in profit or loss		60,395,908			379		(457,558	)		(4,490,773	)		1,399,160			56,847,116
	Increase (decrease) in other comprehensive income		—			—		(20,511	)		557,247			378			537,114
	Acquisitions through business combinations under common control (1)		27,088,856			—		—			—			1,834,311			28,923,167
	Disinvestment through selling businesses		—			—		—			—			—			—
	Foreign currency translation		3,324,089			—		—			—			77,065			3,401,154
	Transfers to (from) Non-current assets and disposals group held for sale		—														—
	Other increases (decreases)		(10,758,834	)		—		473,749			—			(1,102,021	)		(11,387,106	)
																		��
Closing balance December 31, 2014			252,995,247			379		16,498			—			2,210,542			255,222,666

(1) See Note 2.4.1 and 5.

Recovery of deferred tax assets will depend on whether sufficient tax profits will be obtained in the future. The Combined Group believes that the future profit projections for its combined entities will allow these assets to be recovered.

b. As of September 30, 2015, the Combined Group does not have unrecognized deferred tax assets related to tax loss carryforwards. As of December 31, 2014, the Combined Group has unrecognized deferred tax assets related to tax loss carryforwards totaling ThCh$351,900, respectively. See Note 3.o.

The Combined Group has not recognized deferred tax liabilities for taxable temporary differences associated with investment in combined entities and joint ventures, as it is able to control the timing of the reversal of the temporary differences and considers that it is probable that such temporary differences will not reverse in the foreseeable future. As of September 30, 2015 and December 31, 2014, the aggregate of taxable temporary differences associated with investments in combined entities and joint ventures for which deferred tax liabilities have not been recognized totaled ThCh$547,222,564 and ThCh$426,167,022, respectively.

Additionally, the Combined Group has not recognized deferred tax asset for deductible temporary differences which as of September 30, 2015 and December 31, 2014, totaled ThCh$1,167,394,420 and ThCh$966,314,793, respectively, as it is not probable that sufficient future taxable profits exist to recover such temporary differences.

The Combined Group companies are potentially subject to income tax audits by the Chilean tax regulator and are limited to three tax years after which tax audits over those years can no longer be performed. Tax audits by nature are often complex and can require several years to complete. The tax years potentially subject to examination are 2012 through 2014.

Given the range of possible interpretations of tax standards, the results of any future inspections carried out by Chilean tax authority for the years subject to audit can give rise to tax liabilities that cannot currently be quantified objectively. Nevertheless, management estimates that the liabilities, if any, that may arise from such tax audits, would not significantly impact the Combined Group’s future results.

F-64

The effects of deferred tax on the components of other comprehensive income for the nine months ended September 30, 2015 and 2014 are as follows:

Effects of Deferred Tax on the Components of Other Comprehensive Income	9/30/2015									9/30/2014 (Unaudited)
	Amount Before Tax			Income Tax Expense (Benefit)			Amount After Tax			Amount Before Tax			Income Tax Expense (Benefit)			Amount After Tax
	ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$
Available-for-sale financial assets		3,314			(895	)		2,419			6,296			(2,663	)		3,633
Cash flow hedge		(115,919,728	)		30,136,391			(85,783,337	)		(107,869,719	)		24,111,073			(83,758,646	)
Share of other comprehensive income from associates and joint ventures accounted for using the equity method		151,687			—			151,687			13,239,766			—			13,239,766
Foreign currency translation		2,952,588			—			2,952,588			8,617,612			—			8,617,612
Actuarial gains(losses) on defined-benefit pension plans		(2,332,333	)		629,730			(1,702,603	)		—			1,100,658			1,100,658
Income tax related to components of other comprehensive income		(115,144,472	)		30,765,226			(84,379,246	)		(86,006,045	)		25,209,068			(60,796,977	)

c. In Chile, Law No. 20,780 was published in the Official Gazette on September 29, 2014. It changes the income tax system and other taxes, by replacing the current tax system in 2017 with two alternative tax systems: the attributed income system and partially integrated system.

This Law gradually increases the rate of income tax on corporate income. Thus, it will increase to 21% in 2014, to 22.5% in 2015 and to 24% in 2016. As from 2017 taxpayers choosing the attributed income system will be subject to a rate of 25%, while companies choosing the partially integrated system will be subject to a rate of 25.5% in 2017 and 27% in 2018.

Furthermore, this Law establishes that the partially integrated system will apply by default to open stock companies, unless a future Extraordinary Shareholders’ Meeting agrees to adopt the attributed income system.

The Combined Group assumes that, since an Extraordinary Shareholders’ Meeting has not agreed to adopt the alternative system, the partially integrated system applies by default. Therefore, changes in deferred tax assets and liabilities as a direct effect of the increase in the corporate income tax rate have been recognized in profit or loss. Specifically, for the year ended December 31, 2014 the net charge against income was a loss of ThCh$66,669,816.

20. OTHER FINANCIAL LIABILITIES

The balances of other financial liabilities as of September 30, 2015 and December 31, 2014, are as follows:

Other Financial Liabilities	9-30-2015				12-31-2014
	Current ThCh$		Non-current ThCh$		Current ThCh$		Non-current ThCh$
Interest-bearing borrowings		21,384,656		817,272,530		143,170,408		743,672,174
Hedging derivatives (*)		2,173,667		79,617,049		667,153		28,176,011
Non-hedging derivatives (**)		7,906,733		13,326,503		2,526,798		6,286,982
Total		31,465,056		910,216,082		146,364,359		778,135,167

(*) See Note 22.2.a

(**) See Note 22.2.b

F-65

20.1 Interest-bearing borrowings

The detail of current and non-current interest-bearing borrowings as of September 30, 2015 and December 31, 2014, is as follows:

Classes of Loans that Accrue Interest	9-30-2015				12-31-2014
	Current ThCh$		Non-current ThCh$		Current ThCh$		Non-current ThCh$
Bank loans		588,902		—		1,008,956		—
Unsecured obligations		19,020,384		798,285,789		140,690,889		726,019,271
Financial leases		1,775,370		18,986,741		1,470,563		17,652,903
Total		21,384,656		817,272,530		143,170,408		743,672,174

Bank loans by currency and contractual maturity as of September 30, 2015 and December 31, 2014, are as follows:

Summary of bank loans by currency and maturity

Country	Currency	Nominal Interest Rate			Secured/ Unsecured		Current						Non-current
							Maturity				Total Current at 9/30/2015		Maturity										Total Non- current at 9/30/2015
							One to three months		Three to twelve months				One to two years		Two to three years		Three to four years		Four to five years		Over five years
							ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$
Chile	US$		5.98	%		Unsecured		588,288		—		588,288		—		—		—		—		—		—
Chile	Ch$		5.50	%		Unsecured		614		—		614		—		—		—		—		—		—
Total								588,902		—		588,902		—		—		—		—		—		—

Country	Currency	Nominal Interest Rate			Secured/ Unsecured		Current						Non-current
							Maturity				Total Current at 12/31/2014		Maturity										Total Non- current at 12/31/2014
							One to three months		Three to twelve months				One to two years		Two to three years		Three to four years		Four to five years		Over five years
							ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$
Chile	US$		5.98	%		Unsecured		—		1,007,362		1,007,362		—		—		—		—		—		—
Chile	Ch$		5.47	%		Unsecured		1,594		—		1,594		—		—		—		—		—		—
Total								1,594		1,007,362		1,008,956		—		—		—		—		—		—

Fair value measurement and hierarchy

The fair value of current and non-current bank borrowings as of September 30, 2015 and December 31, 2014, totaled ThCh$572,498 and ThCh$1,027,794, respectively. The fair value measurement of borrowings have been categorized as Level 2 (see Note 3.h).

F-66

– Identification of bank borrowings by company

Taxpayer ID Number	Company	Country	Taxpayer ID number	Financial Institution	Country	Currency	Effective interest rate			Nominal interest rate			Amortization	September 30, 2015
														Current ThCh$						Non-current ThCh$
														Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non- Current
96.800.570-7	Chilectra S.A.	Chile	97.004.000-5	Lines of Credit	Chile	Ch$		6.00	%		6.00	%	Other		29		—		29		—		—		—		—		—		—
91.081.000-6	Endesa Chile S.A.	Chile	Foreign	B.N.P. Paribas	U.S.A	US$		6.32	%		5.98	%	Semi-annually		588,288		—		588,288		—		—		—		—		—		—
91.081.000-6	Endesa Chile S.A.	Chile	97.004.000-5	Banco Santander	Chile	Ch$		6.00	%		6.00	%	Monthly		581		—		581		—		—		—		—		—		—
94.271.00-3	Enersis S.A.	Chile	97.004.000-5	Banco Santander Chile	Chile	Ch$		4.50	%		4.50	%	At maturity		4		—		4		—		—		—		—		—		—
Total															588,902		—		588,902		—		—		—		—		—		—
Taxpayer ID Number	Company	Country	Taxpayer ID number	Financial Institution	Country	Currency	Effective interest rate			Nominal interest rate			Amortization	December 31, 2014
														Current ThCh$						Non-current ThCh$
														Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non- Current
96.800.570-7	Chilectra S.A.	Chile	97.004.000-5	Lines of Credit	Chile	Ch$		6.00	%		6.00	%	Other		133		—		133		—		—		—		—		—		—
91.081.000-6	Endesa Chile S.A.	Chile	Foreign	B.N.P. Paribas	U.S.A	US$		6.32	%		5.98	%	Semi-annually		—		1,007,362		1,007,362		—		—		—		—		—		—
91.081.000-6	Endesa Chile S.A.	Chile	97.004.000-5	Banco Santander	Chile	Ch$		6.00	%		6.00	%	Monthly		1,338		—		1,338		—		—		—		—		—		—
94.271.00-3	Enersis S.A.	Chile	97.004.000-5	Banco Santander Chile	Chile	Ch$		4.50	%		4.50	%	At maturity		123		—		123		—		—		—		—		—		—
Total															1,594		1,007,362		1,008,956		—		—		—		—		—		—

Appendix No.4, letter a), presents details of estimated future cash flows (undiscounted) that the Combined Group will have to disburse to settle the bank loans detailed above.

F-67

20.2 Unsecured liabilities

The detail of Unsecured Liabilities by currency and maturity as of September 30, 2015 and December 31, 2014, is as follows:

Summary of unsecured liabilities by currency and maturity

Country	Currency		Nominal Annual Rate			Secured/ Unsecured								Non-Current
								Maturity				Total Current 9/30/2015		Maturity										Total Non- Current 9/30/2015
								One to three months		Three to Twelve months				One to two years		Two to three years		Three to four years		Four to five years		More than five years
								ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$
Chile		US$		7.24	%		Unsecured		4,659,697		8,270,539		12,930,236				—		11,521,315		23,042,627		477,429,312		511,993,254
Chile		U.F.		6.34	%		Unsecured				6,090,148		6,090,148		5,272,153		5,272,153		5,272,153		5,272,153		265,203,923		286,292,535
Total									4,659,697		14,360,687		19,020,384		5,272,153		5,272,153		16,793,468		28,314,780		742,633,235		798,285,789
Country	Currency		Nominal Annual Rate			Secured/ Unsecured								Non-Current
								Maturity				Total Current 12/31/2014		Maturity										Total Non- Current 12/31/2014
								One to three months		Three to Twelve months				One to two years		Two to three years		Three to four years		Four to five years		More than five years
								ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$
Chile		US$		7.17	%		Unsecured		10,600,825		123,527,558		134,128,383		—		—		—		—		419,950,580		419,950,580
Chile		U.F.		5.57	%		Unsecured		—		6,562,506		6,562,506		5,122,437		5,122,437		5,122,437		27,510,710		263,190,670		306,068,691
Total									10,600,825		130,090,064		140,690,889		5,122,437		5,122,437		5,122,437		27,510,710		683,141,250		726,019,271

20.3 Secured liabilities

As of September 30, 2015 and December 31, 2014, there were no secured liabilities.

Fair value measurement and hierarchy

The fair value of current and non-current unsecured liabilities as of September 30, 2015 and December 31, 2014, totaled ThCh$996,314,917 and ThCh$1,088,491,056, respectively. The fair value measurement of these liabilities have been categorized as Level 2 (see Note 3.h).

F-68

- Unsecured liabilities by company

Taxpayer ID Number	Company	Country	Taxpayer ID Number	Financial Institution	Country	Currency	Effective Interest Rate			Nominal Interest Rate			Secured		September 30, 2015
															Current ThCh$						Non-Current ThCh$
															Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non- Current
91.081.000-6	Endesa Chile S.A.	Chile	97.004.000-5	Banco Santander 522 Serie-M	Chile	U.F.		4.82	%		4.75	%		No		—		3,454,071		3,454,071		—		—		11,521,315		23,042,627		215,329,906		249,893,848
91.081.000-6	Endesa Chile S.A.	Chile	97.004.000-5	Banco Santander -317 Serie-H	Chile	U.F.		7.17	%		6.20	%		No		4,659,697		2,636,077		7,295,774		5,272,153		5,272,153		5,272,153		5,272,153		41,790,675		62,879,287
91.081.000-6	Endesa Chile S.A.	Chile	Foreign	BNY Mellon- 144 - A	USA	US$		8.83	%		8.63	%		No		—		—		—		—		—		—		—		—		—
91.081.000-6	Endesa Chile S.A.	Chile	Foreign	BNY Mellon - Primera Emisión S-2	USA	US$		7.40	%		7.33	%		No		—		593,705		593,705		—		—		—		—		48,885,654		48,885,654
91.081.000-6	Endesa Chile S.A.	Chile	Foreign	BNY Mellon - Primera Emisión S-3	USA	US$		8.26	%		8.13	%		No		—		376,036		376,036		—		—		—		—		22,789,356		22,789,356
91.081.000-6	Endesa Chile S.A.	Chile	Foreign	BNY Mellon - Unica 24296	USA	US$		4.32	%		4.25	%		No		—		5,444,193		5,444,193		—		—		—		—		271,141,327		271,141,327
91.081.000-6	Endesa Chile S.A.	Chile	Foreign	BNY Mellon - Primera Emisión S-1	USA	US$		7.96	%		7.88	%		No		—		1,856,605		1,856,605		—		—		—		—		142,696,317		142,696,317
					Total Unsecured Bonds											4,659,697		14,360,687		19,020,384		5,272,153		5,272,153		16,793,468		28,314,780		742,633,235		798,285,789
Taxpayer ID Number	Company	Country	Taxpayer ID Number	Financial Institution	Country	Currency	Effective Interest Rate			Nominal Interest Rate			Secured		December 31, 2014
															Current ThCh$						Non-Current ThCh$
															Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non- Current
91.081.000-6	Endesa Chile S.A.	Chile	97.004.000-5	Banco Santander 522 Serie-M	Chile	U.F.		4.82	%		4.75	%		No		4,098,882		—		4,098,882		—		—		—		22,388,273		220,251,255		242,639,528
91.081.000-6	Endesa Chile S.A.	Chile	97.004.000-5	Banco Santander -317 Serie-H	Chile	U.F.		7.17	%		6.20	%		No		1,310,741		—		1,310,741		5,122,437		5,122,437		5,122,437		5,122,437		42,939,415		63,429,163
91.081.000-6	Endesa Chile S.A.	Chile	Foreign	BNY Mellon - 144 - A	USA	US$		8.83	%		8.63	%		No		830,186		—		830,186		—		—		—		—		—		—
91.081.000-6	Endesa Chile S.A.	Chile	Foreign	BNY Mellon - Primera Emisión S-2	USA	US$		7.40	%		7.33	%		No		4,361,016		121,350,000		125,711,016		—		—		—		—		42,390,409		42,390,409
91.081.000-6	Endesa Chile S.A.	Chile	Foreign	BNY Mellon - Primera Emisión S-3	USA	US$		8.26	%		8.13	%		No		—		2,177,558		2,177,558		—		—		—		—		18,905,448		18,905,448
91.081.000-6	Endesa Chile S.A.	Chile	Foreign	BNY Mellon - Unica 24296	USA	US$		4.32	%		4.25	%		No		—		6,054,055		6,054,055		—		—		—		—		234,941,377		234,941,377
91.081.000-6	Endesa Chile S.A.	Chile	Foreign	BNY Mellon - Primera Emisión S-1	USA	US$		7.96	%		7.88	%		No		—		508,451		508,451		—		—		—		—		123,713,346		123,713,346
					Total Unsecured Bonds											10,600,825		130,090,064		140,690,889		5,122,437		5,122,437		5,122,437		27,510,710		683,141,250		726,019,271

Appendix No. 4, letter b) presents details of estimated future cash flows (undiscounted) that the Combined Group will have to disburse to settle the secured and unsecured liabilities detailed above.

F-69

- Detail of finance lease obligations

Taxpayer ID Number	Company	Country	Taxpayer ID Number	Financial Institution	Country		Currency	Nominal Interest Rate			September 30, 2015
											Current						Non-Current ThCh$
											Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non- Current
91.081.000-6	Endesa Chile S.A.	Chile	87.509.100-K	Abengoa Chile		Chile	US$		6.50	%		—		1,775,370		1,775,370		2,794,880		2,557,749		1,920,774		2,045,625		9,667,713		18,986,741
			Total Leasing									—		1,775,370		1,775,370		2,794,880		2,557,749		1,920,774		2,045,625		9,667,713		18,986,741
Taxpayer ID Number	Company	Country	Taxpayer ID Number	Financial Institution	Country		Currency	Nominal Interest Rate			December 31, 2014
											Current						Non-Current
											Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non- Current
91.081.000-6	Endesa Chile S.A.	Chile	87.509.100-K	Abengoa Chile		Chile	US$		6.50	%		—		1,470,563		1,470,563		2,427,000		1,566,150		1,667,950		1,776,367		10,215,436		17,652,903
			Total Leasing									—		1,470,563		1,470,563		2,427,000		1,566,150		1,667,950		1,776,367		10,215,436		17,652,903

Appendix No. 4 letter c) presents details of estimated future cash flows (undiscounted) that the Combined Group will have to disburse to settle the finance lease obligations detailed above.

20.4 Hedged debt

The U.S. dollar denominated debt of the Combined Group that is designated as cash flow hedge, as referenced in Note 3.m, was ThCh$801,537,707 and ThCh$608,113,125 as of September 30, 2015 and December 31, 2014.

The following table details changes in “Reserve for cash flow hedges” as of September 30, 2015 and December 31, 2014, due to exchange differences of this debt:

	9-30-2015			12-31-2014
Balance in hedging reserves (hedging income) at the beginning of the period, net		(39,805,097	)		(217,636	)
Foreign currency exchange differences recorded in equity, net		(34,972,812	)		(30,045,776	)
Recognition of foreign currency exchange differences in profit and loss, net		1,344,138			(9,541,685	)
Foreign currency translation differences		—			—
Balance in hedging reserves (hedging income) at the end of the period, net		(74,433,772	)		(39,805,097	)

20.5 Other information

As of September 30, 2015 and December 31, 2014, the Combined Group has undrawn borrowing Facilities available for use amounting to ThCh$139,744,000 and ThCh$238,502,592, respectively.

F-70

21. RISK MANAGEMENT POLICY

The Combined Group’s companies are exposed to certain risks that are managed by systems that identify, measure, limit concentration of, and monitor these risks.

The main principles in the Combined Group’s risk management policy include the following:

• Compliance with good corporate governance standards.

• Strict compliance with all the Combined Group’s internal policies.

• Each business and corporate area determines:

I. The markets in which it can operate based on its knowledge and ability to ensure effective risk management;

II. Criteria regarding counterparts;

III. Authorized operators.

• Business and corporate areas establish their risk tolerance in a manner consistent with the defined strategy for each market in which they operate.

• All of the operations of the businesses and corporate areas are conducted within the limits approved for each case.

• Businesses, corporate areas, lines of business and companies design the risk management controls necessary to ensure that transactions in the markets are conducted in accordance with the Enersis policies, standards, and procedures.

21.1 Interest rate risk

Changes in interest rates affect the fair value of assets and liabilities bearing fixed interest rates, as well as the expected future cash flows of assets and liabilities subject to floating interest rates.

The objective of managing interest rate risk exposure is to achieve a balance in the debt structure to minimize the cost of debt with reduced volatility in profit or loss.

In compliance with the current interest rate hedging policy, the proportion of fixed debt and/or hedged debt over the net total debt was 100% as of September 30, 2015.

Depending on the Combined Group’s estimates and on the objectives of the debt structure, hedging transactions are performed by entering into derivatives contracts that mitigate interest rate risk. Derivative instruments currently used to comply with the risk management policy are interest rate swaps to set floating rate at fixed rate.

The financial debt structure of the Combined Group detailed by the mostly strongly hedged fixed and floating interest rates on total net debt, net of hedging derivative instruments, is as follows:

Net position:

	9-30-2015 %			12-31-2014 %
Fixed interest rate		100	%		100	%
Floating interest rate		—			—
Total		100	%		100	%

F-71

21.2 Exchange rate risk

Exchange rate risks involve basically the following transactions:

• Debt taken on by the Combined Group’s companies that is denominated in a currency other than that in which its cash flows are indexed.

• Payments to be made for the acquisition of project-related materials and for corporate insurance policies in a currency other than that in which its cash flows are indexed.

• Income in the Combined Group companies directly linked to changes in currencies other than that of its cash flows.

In order to mitigate foreign currency risk, the Combined Group’s foreign currency risk management policy is based on cash flows and includes maintaining a balance between U.S. dollar flows and the levels of assets and liabilities denominated in this currency. The objective is to minimize the exposure to variability in cash flows that are attributable to foreign exchange risk.

The hedging instruments currently being used to comply with the policy are currency swaps and forward exchange contracts. In addition, the policy seeks to refinance debt in the functional currency of each of the Combined Group’s companies.

21.3 Commodities risk

The Combined Group has a risk exposure to price fluctuations in certain commodities, basically due to:

• Purchases of fuel used to generate electricity.

• Energy purchase/sale transactions that take place in local markets.

In order to reduce the risk in situations of extreme drought, the Combined Group has designed a commercial policy that defines the levels of sales commitments in line with the capacity of its generating power plants in a dry year. It also includes risk mitigation terms in certain contracts with unregulated customers and with regulated customers subject to long-term tender processes, establishing indexation polynomials that allow for reducing commodities exposure risk.

Considering the operating conditions faced by the power generation market in Chile, with drought and highly volatile commodity prices on international markets, the Combined Group is constantly verifying the advisability of using hedging to lessen the impacts that these price swings have on its results. As of September 30, 2015, there are no commodity derivatives transactions. As of December 31, 2014, the Combined Group had swap hedges for 266,000 barrels of Brent oil for January 2015 and 350,000 MMBTU of Henry Hub gas for February 2015.

Depending on operating conditions, which are constantly being updated, these hedges may be modified or may cover other commodities.

21.4 Liquidity risk

The Combined Group maintains a liquidity risk management policy that consists of entering into long-term committed banking facilities and temporary financial investments for amounts that cover the projected needs over a period of time that is determined based on the situation and expectations for debt and capital markets.

The projected needs mentioned above include maturities of financial debt, net of financial derivatives. For further details regarding the features and conditions of financial obligations and financial derivatives, See Notes 20 and 22, and Appendix No. 4.

As of September 30, 2015 and December 31, 2014, the Combined Group has cash and cash equivalent totaling ThCh$85,160,333 and ThCh$132,985,927, respectively, and unconditionally available lines of long-term credit totaling ThCh$139,744,000 and ThCh$238,502,592, respectively.

F-72

21.5 Credit risk

The Combined Group closely monitors its credit risk.

Trade receivables:

The credit risk for receivables from the Combined Group’s commercial activity has historically been very low, due to the short term period of collections from customers, resulting in non-significant cumulative receivables amounts. This situation applies to both the electricity generating and distribution lines of business.

In our electricity generating business, Chilean regulations allow the suspension of energy service to customers with outstanding payments, and most contracts have termination clauses for payment default. The Combined Group monitors its credit risk on an ongoing basis and measures quantitatively its maximum exposure to payment default risk, which, as stated above, is very low.

In our electricity distribution companies, the suspension of energy service for customers in payment default is permitted in all cases, in accordance with current regulations. This facilitates our credit risk management, which is also low in this line of business.

Financial assets:

Cash surpluses are invested in the highest-rated local and foreign financial entities (with risk rating equivalent to investment grade where possible) with thresholds established for each entity.

Banks that have received investment grade ratings from the three major international rating agencies (Moody’s, S&P, and Fitch) are selected for making investments.

Investments may be backed with treasury bonds from the countries in which the Combined Group operates and/or with commercial papers issued by the highest rated banks; the latter are preferred, as they offer higher returns (always in line with current investment policies).

Derivative instruments are entered into with entities with solid creditworthiness; all derivative transactions are performed with entities with investment grade ratings.

21.6 Risk measurement

The Combined Group measures the Value at Risk (VaR) of its debt positions and financial derivatives in order to monitor the risk assumed by the Combined Group, thereby reducing volatility in the income statement.

The VaR determined represents the potential variation in value of the portfolio of positions described above in one quarter with a 95% confidence level. To determine the VaR, we take into account the volatility of the risk variables affecting the value of the portfolio of positions including:

• U.S. dollar Libor interest rate.

• The exchange rates of the various currencies used in the calculation.

The calculation of VaR is based on generating possible future scenarios (at one quarter) of market values (both spot and term) for the risk variables based on the scenarios with observable inputs for a same period (quarter) during five years.

The one-quarter 95%-confidence VaR number is calculated as the 5% percentile of the potential variations in the fair value of the portfolio in one quarter.

Taking into account the assumptions described above, the one-quarter VaR was ThCh$14,191,075. This amount represent the potential increase of the Debt and Derivatives’ Portfolio, thus these Values at Risk are inherently related, among other factors, to the Portfolio’s value at each quarter’ end.

F-73

22. FINANCIAL INSTRUMENTS

22.1 Financial instruments, classified by type and category

a) The detail of financial assets, classified by type and category, as of September 30, 2015 and December 31, 2014, is as follows:

	9-30-2015
	Financial assets held for trading		Financial assets at fair value with change in profit or loss		Held-to-maturity investments		Loans and receivables		Available-for-sale financial assets		Financial derivatives for hedging
	ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$
Derivative instruments		5,157		—		—		—		—		585,915
Other financial assets		—		—		989,104		506,572,421		—		—
Total Current		5,157		—		989,104		506,572,421		—		585,915
Equity instruments		—		—		—		—		3,036,226		—
Derivative instruments		—		—		—		—		—		19,787,148
Other financial assets		—		—		—		6,929,938		—		—
Total Non-current		—		—		—		6,929,938		3,036,226		19,787,148
Total		5,157		—		989,104		513,502,359		3,036,226		20,373,063
	12-31-2014
	Financial assets held for trading		Financial assets at fair value with change in profit or loss		Held-to-maturity investments		Loans and receivables		Available-for-sale financial assets		Financial derivatives for hedging
	ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$
Derivative instruments		33,882		—		—		—		—		508,458
Other financial assets		—		—		948,788		595,033,855		—		—
Total Current		33,882		—		948,788		595,033,855		—		508,458
Equity instruments		—		—		—		—		3,032,834		—
Derivative instruments		22,002		—		—		—		—		3,695,636
Other financial assets		—		—		—		7,496,412		—		—
Total Non-current		22,002		—		—		7,496,412		3,032,834		3,695,636
Total		55,884		—		948,788		602,530,267		3,032,834		4,204,094

F-74

b)The detail of financial liabilities, classified by type and category, as of September 30, 2015 and December 31, 2014, is as follows:

	9-30-2015
	Financial liabilities held for trading ThCh$		Loans and payables ThCh$		Financial derivatives for hedging ThCh$
Interest-bearing loans		—		21,384,656		—
Derivative instruments		7,906,733		—		2,173,667
Other financial liabilities		—		672,189,662		—
Total Current		7,906,733		693,574,318		2,173,667
Interest-bearing loans		—		817,272,530		—
Derivative instruments		13,326,503		—		79,617,049
Other financial liabilities		—		—		—
Total Non-current		13,326,503		817,272,530		79,617,049
Total		21,233,236		1,510,846,848		81,790,716
	12-31-2014
	Financial liabilities held for trading ThCh$		Loans and payables ThCh$		Financial derivatives for hedging ThCh$
Interest-bearing loans		—		143,170,408		—
Derivative instruments		2,526,798		—		667,153
Other financial liabilities		—		682,546,548		—
Total Current		2,526,798		825,716,956		667,153
Interest-bearing loans		—		743,672,174		—
Derivative instruments		6,286,982		—		28,176,011
Other financial liabilities		—		3,711,078		—
Total Non-current		6,286,982		747,383,252		28,176,011
Total		8,813,780		1,573,100,208		28,843,164

22.2 Derivative instruments

The risk management policy of the Combined Group uses primarily interest rate and foreign exchange rate derivatives to hedge its exposure to interest rate and foreign currency risks.

The Combined Group classifies its derivatives as follows:

• Cash flow hedges: Those that hedge the cash flows of the underlying hedged item.

• Fair value hedges: Those that hedge the fair value of the underlying hedged item.

• Non-hedge derivatives: Financial derivatives that do not meet the requirements established by IFRS to be designated as hedge instruments are recorded at fair value with changes in net income (assets held for trading).

F-75

a) Assets and liabilities for hedge derivative instruments

As of September 30, 2015 and December 31, 2014, financial derivative transactions qualifying as hedge instruments resulted in recognition of the following assets and liabilities in the combined statement of financial position:

	September 30, 2015
	Assets				Liabilities
	Current ThCh$		Non-current ThCh$		Current ThCh$		Non-current ThCh$
Exchange rate hedge:		585,915		19,787,148		2,173,667		79,617,049
Cash flow hedge		585,915		19,787,148		2,173,667		79,617,049
Total		585,915		19,787,148		2,173,667		79,617,049

	December 31, 2014
	Assets				Liabilities
	Current ThCh$		Non-current ThCh$		Current ThCh$		Non-current ThCh$
Exchange rate hedge:		508,458		3,695,636		667,153		28,176,011
Cash flow hedge		508,458		3,695,636		667,153		28,176,011
Total		508,458		3,695,636		667,153		28,176,011

General information on hedge derivative instruments

Hedge derivative instruments and their corresponding hedged instruments are shown in the following table:

Detail of hedge instruments	Description of hedge instrument	Description of instrument hedged	Fair value of instruments hedged 9-30-2015 ThCh$			Fair value of instruments hedged 12-31-2014 ThCh$
SWAP	Exchange rate	Unsecured obligations (bonds)		(61,417,653	)		(24,639,070	)

For the nine months ended September 30, 2015 and 2014, the Combined Group has not recognized gains or losses for ineffective cash flow hedges.

The Combined Group has not entered into any fair value hedges for any of the periods reported.

b) Financial derivative instrument assets and liabilities at fair value through profit or loss

As of September 30, 2015 and December 31, 2014, financial derivative transactions recorded at fair value through profit or loss, resulted in the recognition of the following assets and liabilities in the statement of financial position:

	9-30-2015								12-31-2014
	Current Assets ThCh$		Current Liabilities ThCh$		Non-Current Assets ThCh$		Non-Current Liabilities ThCh$		Current Assets ThCh$		Current Liabilities ThCh$		Non-Current Assets ThCh$		Non-Current Liabilities ThCh$
Non-hedging derivative instrument		5,157		7,906,733		—		13,326,503		33,882		2,526,798		22,002		6,286,982

F-76

c) Other information on derivatives

The following tables present the fair value of hedging and non-hedging derivatives entered into by the Combined Group as well as the remaining contractual maturities as of September 30, 2015 and December 31, 2014:

Financial derivatives	September 30, 2015
	Fair value ThCh$			Notional Amount
				Less than 1 year ThCh$		1-2 years ThCh$		2-3 years ThCh$		3-4 years ThCh$		4-5 years ThCh$		Total ThCh$
Interest rate hedge:		—			—		—		—		—		—		—
Cash flow hedge		—			—		—		—		—		—		—
Exchange rate hedge:		(61,417,653	)		—		—		—		—		536,242,718		536,242,718
Cash flow hedge		(61,417,653	)		—		—		—		—		536,242,718		536,242,718
Derivatives not designated for hedge accounting		(21,228,079	)		51,894,501		51,987,038		37,442,611		—		—		141,324,149
Total		(82,645,732	)		51,894,501		51,987,038		37,442,611		—		536,242,718		677,566,867
Financial derivatives	December 31, 2014
	Fair value ThCh$			Notional Amount
				Less than 1 year ThCh$		1-2 years ThCh$		2-3 years ThCh$		3-4 years ThCh$		4-5 years ThCh$		Total ThCh$
Interest rate hedge:		—			—		—		—		—		—		—
Cash flow hedge		—			—		—		—		—		—		—
Exchange rate hedge:		(24,639,070	)		—		—		—		—		260,451,370		260,451,370
Cash flow hedge		(24,639,070	)		—		—		—		—		260,451,370		260,451,370
Derivatives not designated for hedge accounting		(8,757,896	)		65,572,071		46,908,791		45,078,924		19,426,499		—		176,986,285
Total		(33,396,966	)		65,572,071		46,908,791		45,078,924		19,426,499		260,451,370		437,437,655

The hedging and non-hedging derivatives contractual maturities do not represent the Combined Group’s total risk exposure, as the amounts presented in the above tables have been drawn up based on undiscounted contractual cash inflows and outflows for their settlement.

F-77

22.3 Fair value hierarchy

Financial instruments recognized at fair value in the combined statement of financial position are classified based on the hierarchy described in Note 3.h.

The following table presents financial assets and liabilities measured at fair value as of September 30, 2015 and December 31, 2014:

Financial Instruments Measured at Fair Value			Fair Value Measured at End of Reporting Period Using:
	9-30-2015 ThCh$		Level 1 ThCh$		Level 2 ThCh$		Level 3 ThCh$
Financial Assets
Financial derivatives designated as cash flow hedges		20,373,063		—		20,373,063		—
Financial derivatives not designated for hedge accounting		5,157		—		5,157		—
Available-for-sale financial assets, non-current		34,358		34,358		—		—
Total		20,412,578		34,358		20,378,220		—
Financial Liabilities
Financial derivatives designated as cash flow hedges		81,790,716		—		81,790,716		—
Financial derivatives not designated for hedge accounting		21,233,236		—		21,233,236		—
Total		103,023,952		—		103,023,952		—
Financial Instruments Measured at Fair Value			Fair Value Measured at End of Reporting Period Using:
	12-31-2014 ThCh$		Level 1 ThCh$		Level 2 ThCh$		Level 3 ThCh$
Financial Assets
Financial derivatives designated as cash flow hedges		4,204,094		—		4,204,094		—
Financial derivatives not designated for hedge accounting		55,884		—		55,884		—
Available-for-sale financial assets, non-current		362,169		362,169		—		—
Total		4,622,147		362,169		4,259,978		—
Financial Liabilities
Financial derivatives designated as cash flow hedges		28,843,164		—		28,843,164		—
Financial derivatives not designated for hedge accounting		8,813,780		—		8,813,780		—
Total		37,656,944		—		37,656,944		—

22.3.1 Financial instruments whose fair value measurement is classified as Level 3:

The Level 3 fair value is calculated by applying a traditional discounted cash flow method. These projected cash flows include assumptions internally developed by the company that are primarily based on estimates for prices and levels of energy production and firm capacity, as well as the costs of operating and maintaining some of our plants.

F-78

None of the possible reasonable scenarios foreseeable in the assumptions mentioned in the above paragraph would result in a significant change in the fair value of the financial instruments included at this level. As of September 30, 2015 and December 31, 2014, there are no financial instruments whose fair value measurement is classified as Level 3.

23. TRADE AND OTHER CURRENT PAYABLES

The breakdown of Trade and Other Payables as of September 30, 2015 and December 31, 2014 is as follows:

	Current				Non-current
Trade and other payables	9-30-2015 ThCh$		12-31-2014 ThCh$		9-30-2015 ThCh$		12-31-2014 ThCh$
Trade payables		172,464,331		141,406,478		—		—
Other payables		188,304,471		353,954,877		—		3,711,078
Total		360,768,802		495,361,355		—		3,711,078

The detail of Trade and Other Current Payables as of September 30, 2015 and December 31, 2014, is as follows:

	Current				Non-current
					One to five years
Trade and other payables	9-30-2015 ThCh$		12-31-2014 ThCh$		9-30-2015 ThCh$		12-31-2014 ThCh$
Energy suppliers		133,447,103		117,406,230		—		—
Fuel and gas suppliers		39,017,228		24,000,248		—		—
Payables for goods and services		151,095,688		239,620,155		—		—
Dividends payable to non-controlling interests		3,326,312		52,514,644		—		—
Taxes payables other than income tax		11,231,770		9,151,384		—		3,711,078
VAT debit		12,831,876		13,615,918		—		—
Mitsubishi contract (LTSA)		8,192,276		34,214,611		—		—
Other payables		1,626,549		4,838,165		—		—
Total		360,768,802		495,361,355		—		3,711,078

See Note 21.4 for the description of the liquidity risk management policy.

The detail of trade payables, both non-past due and past due as of September 30, 2015 and December 31, 2014, are presented in Appendix 7.

24. PROVISIONS

a) The breakdown of provisions as of September 30, 2015 and December 31, 2014, is as follows:

Provisions	Current				Non-current
	9-30-2015 ThCh$		12-31-2014 ThCh$		9-30-2015 ThCh$		12-31-2014 ThCh$
Provision for legal proceedings		13,038,463		5,113,728		3,241,846		2,397,507
Decommissioning or restoration (1)		—		—		57,822,922		25,572,428
Other provisions		6,516,354		6,509,786		—		—
Total		19,554,817		11,623,514		61,064,768		27,969,935

(1) See Note 3a

The expected timing and amount of any cash outflows related to the above provisions is uncertain and depends on the final resolution of the provisioned matters (See note 3.l)

F-79

The management of Enersis Chile considers that the provisions recorded in the combined financial statements are adequate to cover the risks resulting from litigation.

b) Changes in provisions as of September 30, 2015 and December 31, 2014, are as follows:

Changes in Provisions	Legal Proceedings ThCh$			Decommissioning or Restoration ThCh$		Other Provisions ThCh$			Total ThCh$
Balance at January 1, 2015		7,511,235			25,572,428		6,509,786			39,593,449
Additional provisions		—			—		—			—
Increase (decrease) in existing provisions		9,738,885			31,036,569		6,568			40,782,022
Provisions used		—			—		—			—
Increase from adjustment to time value of money		—			1,213,925		—			1,213,925
Foreign currency translation		(969,811	)		—		—			(969,811	)
Other increase (decrease)		—			—		—			—
Total changes in provisions		8,769,074			32,250,494		6,568			41,026,136
Balance at September 30, 2015		16,280,309			57,822,922		6,516,354			80,619,585
Changes in Provisions	Legal Proceedings ThCh$			Decommissioning or Restoration ThCh$		Other Provisions ThCh$			Total ThCh$
Balance at January 1, 2014		13,364,904			17,691,002		37,566,817			68,622,723
Additional provisions		—			6,815,580		—			6,815,580
Increase (decrease) in existing provisions		(925,600	)		15,850		(31,043,430	)		(31,953,180	)
Provisions used		(4,928,069	)		—		(13,601	)		(4,941,670	)
Increase from adjustment to time value of money		—			1,049,996		—			1,049,996
Foreign currency translation		—			—		—			—
Other increase (decrease)		—			—		—			—
Total changes in provisions		(5,853,669	)		7,881,426		(31,057,031	)		(29,029,274	)
Balance at December 31, 2014		7,511,235			25,572,428		6,509,786			39,593,449

25. EMPLOYEE BENEFIT OBLIGATIONS

25.1 General information

The Combined Group provides various post-employment benefits for all or some of their active or retired employees. These benefits are calculated and recorded in the financial statements according to the criteria described in Note 3.l.1, and include primarily the following:

Defined benefit plans:

• Complementary pension: The beneficiary is entitled to receive a monthly amount that supplements the pension obtained from the respective social security system.

• Employee severance indemnities: The beneficiary receives a certain number of contractual salaries upon retirement. Such benefit is subject to a vesting minimum service requirement period, which depending on the Combined Group, varies within a range from 5 to 15 years.

• Electricity: The beneficiary receives a monthly bonus to cover a portion of their billed residential electricity consumption.

• Health benefit: The beneficiary receives health coverage in addition to that to which they are entitled to under applicable social security regime.

F-80

25.2 Details, changes and presentation in financial statements

a) The post-employment obligations associated with the defined benefits plan as of September 30, 2015 and December 31, 2014, are as follows:

General ledger accounts:

	9-30-2015 ThCh$		12-31-2014 ThCh$
Post-employment obligations		50,819,635		53,937,842
Total		50,819,635		53,937,842
Total post-employment obligations, net		50,819,635		53,937,842

b) The following amounts were recognized in the combined statement of comprehensive income for the nine months ended September 30, 2015 and 2014:

Expense Recognized in the Statement of Comprehensive Income	9-30-2015 ThCh$		9-30-2014 (Unaudited) ThCh$
Current service cost for defined benefits plan		1,539,535		1,365,665
Interest cost for defined benefits plan		1,734,791		1,562,832
Past service costs		—		331,581
Expenses recognized in the Statement of Income		3,274,326		3,260,078
Gains (losses) from remeasurement of defined benefit plans		2,332,333		—
Total expense recognized in the Statement of Comprehensive Income		5,606,659		3,260,078

c) The balance and changes in post-employment defined benefit obligations as of September 30, 2015 and December 31, 2014, are as follows:

Actuarial Value of Post-employment Obligations	ThCh$
Balance at January 1, 2014		41,495,612
Current service cost		1,642,846
Net Interest cost		2,139,043
Actuarial (gains) losses from changes in financial assumptions		6,190,052
Actuarial (gains) losses from changes in experience adjustments		6,502,804
Foreign currency translation		(273,590	)
Benefits paid		(5,007,250	)
Past service cost		667,153
Defined benefit plan obligations from business combinations		1,297,048
Transfers of employees		(102,423	)
Other		(613,453	)
Balance at December 31, 2014		53,937,842
Current service cost		1,539,535
Net Interest cost		1,734,791
Actuarial (gains) losses from changes in experience adjustments		2,332,333
Foreign currency translation		(697	)
Benefits paid		(8,328,124	)
Other		(396,045	)
Balance at September 30, 2015		50,819,635

The Combined Group companies make no contributions to funds for financing the payment of these benefits.

F-81

Other disclosures:

• Actuarial assumptions:

As of September 30, 2015 and December 31, 2014, the following assumptions were used in the actuarial calculation of defined benefits:

	9-30-2015			12-31-2014
Discount rates used		4.60	%		4.60	%
Expected rate of salary increases		3.00	%		4.00	%
Mortality tables		RV -2009			RV -2009

• Sensitivity

As of September 30, 2015 and December 31, 2014, the sensitivity value of the actuarial liability for post-employment benefits to variations of 100 basis points in the discount rate assumes a decrease of ThCh$3,903,525, and ThCh$3,886,938, respectively, if the rate rises, and an increase of ThCh$4,590,001 and ThCh$4,559,332, respectively, if the rate falls.

• Future disbursements

The estimates available indicate that ThCh$8,573,738 will be disbursed for defined benefit plans in the next year.

• Term of commitments

The Combined Group’s obligations have a weighted average length of 6.35 years, and the flow for benefits for the next five years and more is expected to be as follows:

Years	ThCh$
1		8,573,738
2		4,881,554
3		4,423,747
4		4,989,801
5		4,388,053
Over 5		25,464,149

26. EQUITY

26.1 Net assets (Combined financial statements)

As stated in Note 2.1 “Basis of preparation” Enersis Chile was not a group for Consolidated Financial Statements reporting purposes in accordance with IFRS 10Consolidated Financial Statements and was presented on the basis of the aggregation of the net assets of the legal entities of Enersis group located in Chile. Since the combined group does not have any subscribed capital, a presentation of earnings per share in accordance with IAS 33Earnings per Share, it is not applicable.

F-82

26.2 Foreign currency translation reserves

The following table details currency translation adjustments attributable to Enersis Chile, for the nine months ended September 30, 2015 and 2014:

Reserves for Accumulated Currency Translation Differences	9-30-2015 ThCh$		9-30-2014 (Unaudited) ThCh$
Inversiones GasAtacama Holding Ltda.		11,125,888		9,018,476
GNL Quinteros		477,445		(913,587	)
GNL Chile		334,093		80,497
Electrogas		1,786,459		695,059
TOTAL		13,723,885		8,880,445

26.3 Restrictions on combined companies transferring funds to the parent

Certain of the companies included in the Combined Group must comply with financial ratio covenants which require them to have a minimum level of equity or other requirements that restrict the transferring of assets to Enersis Chile. The Combined Group’s restricted net assets as of September 30, 2015 from its combined entity Endesa Chile totaled ThCh$ 497,184,293.

26.4 Other reserves

Other reserves within Equity attributable to Enersis Chile for the nine months ended September 30, 2015 and 2014 are as follows:

	Balance at January 1, 2015 ThCh$			2015 Changes ThCh$			Balance at September 30, 2015 ThCh$
Exchange differences on translation		11,443,966			2,279,919			13,723,885
Cash flow hedges		(66,850,863	)		(51,708,486	)		(118,559,349	)
Available-for-sale financial assets		14,046			2,414			16,460
Other miscellaneous reserves		(873,486,367	)		(1,211,361	)		(874,697,728	)
TOTAL		(928,879,218	)		(50,637,514	)		(979,516,732	)
	Balance at January 1, 2014 ThCh$			2014 Changes ThCh$			Balance at September 30, 2014 (Unaudited) ThCh$
Exchange differences on translation		3,628,184			5,252,261			8,880,445
Cash flow hedges		(6,258,379	)		(50,905,635	)		(57,164,014	)
Available-for-sale financial assets		11,811			3,751			15,562
Other miscellaneous reserves		(877,246,493	)		(29,208,469	)		(906,454,962	)
TOTAL		(879,864,877	)		(74,858,092	)		(954,722,969	)

a) Reserves for exchange difference on translation arise from:

• Translation of the financial statements of our Chilean operations from their functional currencies to our presentation currency (i.e. Chilean peso) (see Note 2.6.3); and

• Translation of goodwill arising from the acquisition of Chilean operations with a functional currency other than the Chilean peso (see Note 3.c).

b) Cash flow hedging reserves:These represent the cumulative portion of effective gains and losses recognized in cash flow hedges (see Note 3.g.5).

F-83

c) Other reserves

The main items and their effects are the following:

i) In accordance with Official Bulletin No. 456 from the SVS (Superintendencia de Valores y Seguros de Chile), included in this line item is the monetary correction corresponding to the accumulated paid-up capital from the date of our transition to IFRS, January 1, 2004, to December 31, 2008.

Please note that, while the Combined Group adopted the IFRS as its statutory accounting standards on January 1, 2013, the date of transition to that international standard used was the same as that used by its parent company, Endesa, S.A. (Spain), January 1, 2004. This results from applying the exemption for that purpose in IFRS 1, “First Time Adoption”.

ii) Foreign currency translation differences existing at the time of transition to IFRS (IFRS 1 exemption, First Time Adoption).

26.5 Non-controlling Interests

26.5.1 The detail of non-controlling interests

	Non-controlling financial interests
	9-30-2015 %	Equity					Profit (Loss)
Companies		9-30-2015 ThCh$			12-31-2014 ThCh$		9-30-2015 ThCh$			9-30-2014 (Unaudited) ThCh$
Chilectra S.A.	0.91%		6,919,775			6,096,609		918,471			770,118
Empresa Nacional de Electricidad S.A	40.02%		567,536,292			590,523,470		40,288,011			13,748,187
Empresa Eléctrica Pehuenche S.A.	7.35%		12,368,213			12,597,077		6,183,061			5,964,933
Constructora y Proyectos Los Maitenes S.A.	0.00%		—			—		—			2,878,558
Sociedad Agrícola de Cameros Ltda.	42.50%		2,455,754			2,483,339		(27,585	)		(35,408	)
Others			(166,571	)		163,862		(1,035	)		211,793
Total			589,113,463			611,864,357		47,360,923			23,538,181

F-84

27. REVENUE AND OTHER INCOME

The detail of revenues presented in the combined statement of comprehensive income for the nine months ended September 30, 2015 and 2014, is as follows:

Revenues	For the nine months ended
	9-30-2015 ThCh$		9-30-2014 (Unaudited) ThCh$
Energy sales		1,650,442,562		1,367,941,145
Generation		822,300,521		626,980,501
Regulated customers		529,634,192		294,895,384
Non-regulated customers		188,137,634		269,237,640
Spot market sales		88,013,239		49,329,089
Other customers		16,515,456		13,518,388
Distribution		828,142,041		740,960,644
Residential		279,600,726		248,915,051
Business		234,704,933		209,921,548
Industrial		163,323,036		145,437,149
Other consumers (1)		150,513,346		136,686,896
Other sales		26,966,253		14,516,552
Natural Gas sales		13,819,660		4,125,174
Sales of products and services		13,146,593		10,391,378
Revenue from other services		76,491,160		94,949,990
Tolls and transmission		32,876,545		44,791,152
Metering equipment leases		3,266,019		3,132,696
Public lighting		8,220,190		6,220,583
Other services (2)		32,128,406		40,805,559
Total operating income		1,753,899,975		1,477,407,687
	For the nine months ended
Other Operating Income	9-30-2015 ThCh$		9-30-2014 (Unaudited) ThCh$
Other income (3)		8,298,934		21,454,312
Total other income		8,298,934		21,454,312

(1) For the nine months ended September 30, 2015, includes revenues from energy sales to municipalities for ThCh$66,363,345; government entities ThCh$32,054,705; hospitals and other related public health entities for ThCh$4,072,058; distribution companies for ThCh$34,578,458; agricultural sector entities for ThCh$7,369,069; and other for ThCh$4,748,326. For the nine months ended September 30, 2014, includes revenues from energy sales to municipalities for ThCh$49,769,397; government entities ThCh$23,961,279; hospitals and other related public health entities for ThCh$20,371,444; distribution companies for ThCh$31,030,858; agricultural sector entities for ThCh$5,478,091; and other for ThCh$5,903,629.

(2) For the nine months ended September 30, 2015, includes services for construction of junctions for ThCh$12,336,330; works in specific facilities and networks for ThCh$16,706,596; and other services for ThCh$3,085,480. For the nine months ended September 30, 2014, includes services for construction of junctions for ThCh$11,445,324; tolls from concessions for ThCh$8,061,362; works in specific facilities and networks for ThCh$13,066,129; and other services for ThCh$8,232,744.

F-85

(3) Mainly related to indemnifications received from third-party for breach of contracts of ThCh$3,109,539 for the nine months ended September 30, 2015 (ThCh$15,153,482 for the nine months ended September 30, 2014); revenues from trading commodity derivatives for ThCh$1,800,995 for the nine months ended September 30, 2015 (ThCh$2,346,301 for the nine months ended September 30, 2014); and revenues from water sales of ThCh$1,184,961 for the nine months ended September 30, 2015.

28. RAW MATERIALS AND CONSUMABLES USED

The detail of raw materials and consumables used presented in profit or loss for the nine months ended September 30, 2015 and 2014, is as follows:

Raw Materials and Consumables Used	For the nine months ended
	9-30-2015 ThCh$			9-30-2014 (Unaudited) ThCh$
Energy purchases		(642,367,505	)		(611,229,791	)
Fuel consumption		(289,424,648	)		(232,011,290	)
Transportation costs		(129,577,583	)		(135,080,966	)
Other raw materials and consumables		(90,457,489	)		(25,518,647	)
Total		(1,151,827,225	)		(1,003,840,694	)

29. EMPLOYEE BENEFITS EXPENSE

Employee expenses recognized in profit or loss for the nine months ended September 30, 2015 and 2014, are as follows:

Employee Benefits Expense	For the nine months ended
	9-30-2015 ThCh$			9-30-2014 (Unaudited) ThCh$
Wages and salaries		(86,419,365	)		(86,333,458	)
Post-employment benefit obligations expense		(1,539,535	)		(1,697,246	)
Social security and other contributions		(14,336,795	)		(8,473,371	)
Total		(102,295,695	)		(96,504,075	)

30. DEPRECIATION, AMORTIZATION AND IMPAIRMENT LOSSES

The detail of depreciation, amortization and impairment losses recognized for the nine months ended September 30, 2015 and 2014 are as follows:

	For the nine months ended
	9-30-2015 ThCh$			9-30-2014 (Unaudited) ThCh$
Depreciation		(109,116,814	)		(89,164,852	)
Amortization		(3,274,639	)		(4,225,008	)
Subtotal		(112,391,453	)		(93,389,860	)
Reversal (losses) from impairment (*)		(4,917,537	)		(1,075,487	)
Total		(117,308,990	)		(94,465,347	)

F-86

(*) Information on Impairment Losses by Business Segment	Generation				Distribution						Other				Balance at
	9-30-2015 ThCh$		9-30-2014 (Unaudited) ThCh$		9-30-2015 ThCh$			9-30-2014 (Unaudited) ThCh$			9-30-2015 ThCh$		9-30-2014 (Unaudited) ThCh$		9-30-2015 ThCh$			9-30-2014 (Unaudited) ThCh$
Financial assets (see Note 9c)		—		189,544		(5,027,094	)		(1,265,031	)		—		—		(5,027,094	)		(1,075,487	)
Property, plant and equipment (see note 17)		109,557		—		—			—			—		—		109,557			—
Total		109,557		189,544		(5,027,094	)		(1,265,031	)		—		—		(4,917,537	)		(1,075,487	)

31. OTHER EXPENSES

Other miscellaneous operating expenses for the nine months ended September 30, 2015 and 2014, are as follows:

Other Expenses	For the nine months ended
	9-30-2015 ThCh$			9-30-2014 (Unaudited) ThCh$
Other supplies and services		(12,366,153	)		(12,018,022	)
Professional, outsourced and other services		(31,322,930	)		(43,439,737	)
Repairs and maintenance		(10,381,239	)		(9,070,052	)
Indemnities and fines		(1,303,521	)		(378,752	)
Taxes and charges		(5,320,780	)		(4,998,379	)
Insurance premiums		(11,011,670	)		(9,749,791	)
Leases and rental costs		(2,760,267	)		(6,466,979	)
Marketing, public relations and advertising		(2,072,615	)		(2,275,848	)
Other supplies		(1,260,610	)		(585,078	)
Travel expenses		(3,015,247	)		(2,878,701	)
Environmental expenses		(1,654,847	)		(1,660,581	)
Total		(82,469,879	)		(93,521,920	)

32. OTHER GAINS (LOSSES)

Other gains (losses) for the nine months ended September 30, 2015 and 2014, are as follows:

Other Gains (Losses)	For the nine months ended
	9-30-2015 ThCh$			9-30-2014 (Unaudited) ThCh$
Gain on sale of Tunel El Melón (1)		4,207,167			—
Gain on sale of investment properties (2)		1,463,163			5,287,375
Gain on sale of land		1,661,915			—
Gain on remeasuring pre-existing interest held in Inversiones GasAtacama Holding Ltda. (3)		—			21,546,320
Reclassification of translation difference reserve on the pre-existing interest held in Inversiones GasAtacama Holding Ltda. (3)		—			21,006,456
Other		(638,071	)		(85,097	)
Total		6,694,174			47,755,054

(1) See Note 2.4.1 and 13

(2) See Note 18

(3) See Note 5.d

F-87

33. FINANCIAL RESULTS

Financial income and costs for the nine months ended September 30, 2015 and 2014, are as follows:

Financial Income	For the nine months ended
	9-30-2015 ThCh$		9-30-2014 (Unaudited) ThCh$
Income from deposits and other financial instruments		1,307,305		2,577,320
Other financial income		9,768,120		6,547,514
Total		11,075,425		9,124,834

Financial Costs	For the nine months ended
	9-30-2015 ThCh$			9-30-2014 (Unaudited) ThCh$
Financial costs		(52,290,795	)		(58,021,595	)
Bank loans		(35,197	)		(600,141	)
Secured and unsecured obligations		(40,124,564	)		(34,915,556	)
Financial leasing		(771,767	)		(740,356	)
Valuation of financial derivatives		(1,373,503	)		(2,365,853	)
Financial provisions		(1,228,035	)		(770,668	)
Post-employment benefit obligations		(1,734,791	)		(1,562,832	)
Capitalized borrowing costs		1,354,490			1,022,024
Other financial costs		(8,377,428	)		(18,088,213	)
Loss from indexed assets and liabilities (*)		3,320,149			3,088,893
Foreign currency exchange differences (**)		(45,890,221	)		(13,734,131	)
Total financial costs		(94,860,867	)		(68,666,833	)
Total financial results		(83,785,442	)		(59,541,999	)

The effects on financial results from exchange differences and the application of indexed assets and liabilities originated from the following:

Profit (losses) from Indexed Assets and Liabilities (*)	For the nine months ended
	9-30-2015 ThCh$			9-30-2014 (Unaudited) ThCh$
Other financial assets		7,197,900			9,110,374
Other non-financial assets		7,503			26,934
Trade and other receivables		481,056			79,409
Current tax assets and liabilities		4,935,479			5,467,588
Other financial liabilities (financial debt and derivative instruments)		(9,162,838	)		(11,517,401	)
Trade and other payables		(138,951	)		(11,988	)
Other provisions		—			(65,390	)
Other non-financial liabilities		—			(633	)
Total		3,320,149			3,088,893

F-88

Foreign Currency Exchange Differences (**)	For the nine months ended
	9-30-2015 ThCh$			9-30-2014 (Unaudited) ThCh$
Cash and cash equivalents		3,397,749			348,047
Other financial assets		9,092,030			(17,491,765	)
Other non-financial assets		—			162,075
Trade and other receivables		12,865,234			14,969,151
Current tax assets and liabilities		—			(488,988	)
Other financial liabilities (financial debt and derivative instruments)		(26,639,853	)		(2,459,182	)
Trade and other payables		(44,605,381	)		(8,214,886	)
Other non-financial liabilities		—			(558,583	)
Total		(45,890,221	)		(13,734,131	)

34. INCOME TAXES

The following table presents the components of the income tax expense/(benefit) for the nine months ended September 30, 2015 and 2014:

Current Income Tax and Adjustments to Current Income Tax for Previous Periods	For the nine months ended
	9-30-2015 ThCh$			9-30-2014 (Unaudited) ThCh$
Current income tax		(36,702,361	)		(18,829,519	)
Adjustments to current tax from the previous period		(7,277,572	)		(6,459,975	)
Benefit / (expense) for current income tax due to changes in tax rates or the introduction of new taxes		—			(4,747,995	)
Other current tax benefit / (expense)		(32,271,943	)		(13,511,752	)
Current tax expense, net		(76,251,876	)		(43,549,242	)
Benefit / (expense) from deferred taxes for origination and reversal of temporary differences		19,020,203			7,623,968
Benefit / (expense) from deferred taxes due to changes in tax rates or the introduction of new taxes		—			(66,669,816	)
Other components of deferred tax (benefit) /expense		—			—
Adjustments from prior periods deferred taxes		(264,982	)		—
Total deferred tax benefit / (expense)		18,755,221			(59,045,849	)
Income tax expense		(57,496,655	)		(102,595,091	)

F-89

The following table reconciles income taxes resulting from applying the local current tax rate to “Net income before taxes” and the actual income tax expense recorded in the accompanying Combined Statement of Comprehensive Income for the nine months ended September 30, 2015 and 2014:

Reconciliation of Tax Expense	Rate			9-30-2015 ThCh$			Rate			9-30-2014 (Unaudited) ThCh$
ACCOUNTING INCOME BEFORE TAX					254,764,766						222,376,854
Total tax income (expense) using statutory rate		(22.50	%)		(57,322,071	)		(21.00	%)		(46,699,138	)
Tax effect of non-taxable revenues		2.10	%		5,344,840			7.19	%		15,991,967
Tax effect of non-tax-deductible expenses		(2.78	%)		(7,084,019	)		(1.76	%)		(3,909,877	)
Tax effect of changes in income tax rates (*)		—			—			(32.04	%)		(71,247,160	)
Tax effect of adjustments to taxes in previous periods		(2.86	%)		(7,277,572	)		(2.90	%)		(6,459,975	)
Adjustments from prior periods deferred taxes		(0.10	%)		(264,982	)		—			—
Price level restatement for tax purposes (investments and equity)		3.57	%		9,107,149			4.38	%		9,729,092
Total adjustments to tax expense using statutory rate		(0.07	%)		(174,584	)		(25.14	%)		(55,895,953	)
Income tax expense		(22.57	%)		(57,496,655	)		(46.14	%)		(102,595,091	)

(*) The principal temporary differences are detailed in Note 19a.

35. INFORMATION BY SEGMENT

35.1 Basis of segmentation criteria

Since Enersis Chile S.A. has not yet been established as a legal entity, no chief operating decision maker existed for this Combined Group. Consequently, the Combined Group does not yet have any operating segments as the term is defined under IFRS 8 Operating Segments. Information provided in this note includes segments as they are supposed to be analyzed by the chief operating decision maker upon appointment of the latter.

The Combined Group’s activities will be organized primarily around its core businesses: electric energy generation and distribution. On that basis, the Combined Group has established two major business lines.

Considering that the differentiated information will be analyzed by the Combined Group’s chief operating decision maker, segment information has been organized by its core businesses.

Given that the Combined Group’s corporate organization basically matches its future business organization and, therefore, the segments, the following information is based on the financial information of the companies forming each segment. The accounting policies used to determine the segment information are the same as those used in the preparation of the Combined Group’s combined financial statements.

F-90

The following tables present details of this information by segment:

35.2 Generation, distribution and others

Line of Business	Generation				Distribution				Eliminations and others						Total
ASSETS	9-30-2015 ThCh$		12-31-2014 ThCh$		9-30-2015 ThCh$		12-31-2014 ThCh$		9-30-2015 ThCh$			12-31-2014 ThCh$			9-30-2015 ThCh$		12-31-2014 ThCh$
CURRENT ASSETS		473,803,232		514,223,177		259,773,656		283,754,811		31,257,056			44,885,510			764,833,944		842,863,498
Cash and cash equivalents		14,145,358		38,186,573		2,482,732		4,867,106		68,532,243			89,932,248			85,160,333		132,985,927
Other current financial assets		1,518,027		1,464,821		24,663		13,483		37,486			12,825			1,580,176		1,491,129
Other current non-financial assets		10,600,736		10,766,654		6,332,551		4,837,555		593,225			443,398			17,526,512		16,047,607
Trade and other current receivables		337,190,608		317,250,689		238,459,538		257,567,489		4,760,415			3,263,027			580,410,561		578,081,205
Current accounts receivable from related companies		59,977,672		54,976,444		7,912,464		12,867,310		(45,935,982	)		(50,891,104	)		21,954,154		16,952,650
Inventories		31,648,641		36,871,184		1,406,309		3,542,452		2,494,525			3,264,242			35,549,475		43,677,878
Current tax assets		18,722,190		44,701,760		3,155,399		59,416		775,144			886,963			22,652,733		45,648,139
Non-current assets classified as held for sale and discontinued operations		—		10,005,052		—		—		—			(2,026,089	)		—		7,978,963
NON-CURRENT ASSETS		2,800,901,615		2,722,809,246		734,777,028		698,940,269		848,785,230			862,121,732			4,384,463,873		4,283,871,247
Other non-current financial assets		22,789,384		6,719,853		33,990		30,619		—			—			22,823,374		6,750,472
Other non-current non-financial assets		3,387,708		42,847		1,131,351		188,156		(1,342	)		4,427			4,517,717		235,430
Trade and other non-current receivables		48,635		—		6,741,484		7,364,934		139,819			131,478			6,929,938		7,496,412
Non-current accounts receivable from related companies		—		—		—		—		—			—			—		—
Investments accounted for using the equity method		47,687,925		40,365,323		55,748		53,525		(55,747	)		(53,525	)		47,687,926		40,365,323
Intangible assets other than goodwill		19,383,824		18,851,913		20,135,627		14,613,951		(1,793,962	)		3,059,658			37,725,489		36,525,522
Goodwill		24,860,356		24,860,356		2,240,478		2,240,478		860,156,821			860,156,821			887,257,655		887,257,655
Property, plant and equipment		2,664,655,189		2,621,113,892		704,048,512		674,156,508		(19,588,083	)		(11,509,624	)		3,349,115,618		3,283,760,776
Investment property		—		—		—		—		8,156,603			8,514,562			8,156,603		8,514,562
Deferred tax assets		18,088,594		10,855,062		389,838		292,098		1,771,121			1,817,935			20,249,553		12,965,095
TOTAL ASSETS		3,274,704,847		3,237,032,423		994,550,684		982,695,080		880,042,286			907,007,242			5,149,297,817		5,126,734,745

F-91

Line of Business	Generation					Distribution						Eliminations and others						Total
LIABILITIES AND EQUITY	9-30-2015 ThCh$			12-31-2014 ThCh$		9-30-2015 ThCh$			12-31-2014 ThCh$			9-30-2015 ThCh$			12-31-2014 ThCh$			9-30-2015 ThCh$			12-31-2014 ThCh$
CURRENT LIABILITIES		804,375,101			680,402,981		202,670,567			261,250,997			(227,809,511	)		(21,570,283	)		779,236,157			920,083,695
Other current financial liabilities		31,465,023			146,364,103		29			133			4			123			31,465,056			146,364,359
Trade and other current payables		403,455,239			332,677,495		140,584,856			116,345,087			(183,271,293	)		46,338,773			360,768,802			495,361,355
Current accounts payable to related companies		334,348,933			142,780,113		52,687,066			128,880,543			(51,551,493	)		(84,475,463	)		335,484,506			187,185,193
Other current provisions		18,857,312			10,932,577		36,140			68,028			661,365			622,909			19,554,817			11,623,514
Current tax liabilities		3,862,956			31,480,257		15,419			4,501,006			48,486			2,376,603			3,926,861			38,357,866
Current provisions for employee benefits		—			—		—			—			—			—			—			—
Other current non-financial liabilities		12,385,638			16,168,436		9,347,057			11,456,200			6,303,420			8,078,625			28,036,115			35,703,261
Liabilities associated with current assets classified as held for sale and discontinued operations		—			—		—			—			—			5,488,147			—			5,488,147
NON-CURRENT LIABILITIES		1,152,529,885			1,060,586,955		45,279,044			51,025,398			55,182,959			10,972,906			1,252,991,888			1,122,585,259
Other non-current financial liabilities		910,216,082			778,135,167		—			—			—			—			910,216,082			778,135,167
Trade and other non-current payables		—			3,711,078		—			—			—			—			—			3,711,078
Non-current accounts payable to related companies		—			—		—			—			—			—			—			—
Other long-term provisions		57,397,502			25,161,118		3,667,266			2,808,817			—			—			61,064,768			27,969,935
Deferred tax liabilities		167,576,824			232,085,097		17,041,118			23,069,096			43,010,954			68,473			227,628,896			255,222,666
Non-current provisions for employee benefits		14,717,530			18,537,036		23,934,191			24,497,162			12,167,914			10,903,644			50,819,635			53,937,842
Other non-current non-financial liabilities		2,621,947			2,957,459		636,469			650,323			4,091			789			3,262,507			3,608,571
EQUITY		1,317,799,861			1,496,042,487		746,601,073			670,418,685			1,052,668,838			917,604,619			3,117,069,772			3,084,065,791
Equity attributable to Enersis Chile		1,317,799,861			1,496,042,487		746,601,073			670,418,685			1,052,668,838			917,604,619			2,527,956,309			2,472,201,434
Allocated capital		638,288,813			619,260,333		230,492,200			230,492,200			1,360,327,962			1,379,356,442			2,229,108,975			2,229,108,975
Retained earnings		887,494,564			829,887,035		832,340,258			767,602,864			(441,470,756	)		(425,518,222	)		1,278,364,066			1,171,971,677
Other reserves		(207,983,516	)		46,895,119		(316,231,385	)		(327,676,379	)		133,811,632			(36,233,601	)		(979,516,732	)		(928,879,218	)
Non-controlling interests		—			—		—			—			—			—			589,113,463			611,864,357
Total Liabilities and Equity		3,274,704,847			3,237,032,423		994,550,684			982,695,080			880,042,286			907,007,242			5,149,297,817			5,126,734,745

The eliminations column corresponds to transactions between companies in different lines of business and country, primarily purchases and sales of energy and services.

F-92

Line of Business	Generation						Distribution						Eliminations and others						Total
STATEMENT OF COMPREHENSIVE INCOME	9-30-2015 ThCh$			9-30-2014 (Unaudited) ThCh$			9-30-2015 ThCh$			9-30-2014 (Unaudited) ThCh$			9-30-2015 ThCh$			9-30-2014 (Unaudited) ThCh$			9-30-2015 ThCh$			9-30-2014 (Unaudited) ThCh$
REVENUES AND OTHER OPERATING INCOME		1,131,407,459			876,112,867			930,399,001			830,887,781			(299,607,551	)		(208,138,649	)		1,762,198,909			1,498,861,999
Revenues		1,127,922,248			860,266,754			925,989,796			826,230,486			(300,012,069	)		(209,089,553	)		1,753,899,975			1,477,407,687
Energy sales		1,077,215,296			824,541,995			826,814,655			739,503,643			(253,587,389	)		(196,104,493	)		1,650,442,562			1,367,941,145
Other sales		21,415,581			8,312,010			5,555,897			4,774,745			(5,224	)		1,429,797			26,966,254			14,516,552
Other services rendered		29,291,371			27,412,749			93,619,244			81,952,098			(46,419,456	)		(14,414,857	)		76,491,159			94,949,990
Other operating income		3,485,211			15,846,113			4,409,205			4,657,295			404,518			950,904			8,298,934			21,454,312
RAW MATERIALS AND CONSUMABLES USED		(712,863,643	)		(588,934,880	)		(725,894,546	)		(628,678,985	)		286,930,964			213,773,171			(1,151,827,225	)		(1,003,840,694	)
Energy purchases		(246,551,238	)		(240,490,204	)		(650,588,590	)		(566,025,134	)		254,772,323			195,285,547			(642,367,505	)		(611,229,791	)
Fuel consumption		(289,424,648	)		(232,007,925	)		—			—			—			(3,365	)		(289,424,648	)		(232,011,290	)
Transportation expenses		(126,196,302	)		(110,084,940	)		(45,803,557	)		(43,876,183	)		42,422,276			18,880,157			(129,577,583	)		(135,080,966	)
Other miscellaneous supplies and services		(50,691,455	)		(6,351,811	)		(29,502,399	)		(18,777,668	)		(10,263,635	)		(389,168	)		(90,457,489	)		(25,518,647	)
CONTRIBUTION MARGIN		418,543,816			287,177,987			204,504,455			202,208,796			(12,676,587	)		5,634,522			610,371,684			495,021,305
Other work performed by the entity and capitalized		11,759,208			12,203,142			4,316,816			3,701,779			—			—			16,076,024			15,904,921
Employee benefits expense		(54,486,923	)		(49,112,666	)		(24,305,937	)		(24,085,760	)		(23,502,835	)		(23,305,649	)		(102,295,695	)		(96,504,075	)
Other expenses		(55,279,562	)		(53,073,741	)		(45,894,872	)		(49,732,889	)		18,704,555			9,284,710			(82,469,879	)		(93,521,920	)
GROSS OPERATING INCOME		320,536,539			197,194,722			138,620,462			132,091,926			(17,474,867	)		(8,386,417	)		441,682,134			320,900,231
Depreciation and amortization expense		(91,294,436	)		(71,286,205	)		(21,512,049	)		(20,267,434	)		415,032			(1,836,221	)		(112,391,453	)		(93,389,860	)
Impairment losses (reversal of impairment losses) recognized in profit or loss		109,557			189,544			(5,027,094	)		(1,265,031	)		—			—			(4,917,537	)		(1,075,487	)
OPERATING INCOME		229,351,660			126,098,061			112,081,319			110,559,461			(17,059,835	)		(10,222,638	)		324,373,144			226,434,884
FINANCIAL RESULT		(95,288,055	)		(63,027,659	)		8,728,350			3,426,000			2,774,263			59,660			(83,785,442	)		(59,541,999	)
Financial income		158,430			1,404,413			10,097,477			6,214,397			819,518			1,506,024			11,075,425			9,124,834
Financial costs		(50,224,176	)		(54,736,875	)		(1,712,043	)		(3,095,714	)		(354,576	)		(189,006	)		(52,290,795	)		(58,021,595	)
Profit (loss) from indexed assets and liabilities		2,915,547			2,688,098			392,726			246,352			11,876			154,443			3,320,149			3,088,893
Foreign currency exchange differences		(48,137,856	)		(12,383,295	)		(49,810	)		60,965			2,297,445			(1,411,801	)		(45,890,221	)		(13,734,131	)
Positive		24,095,968			17,211,246			420,956			130,653			2,715,808			2,363,022			27,232,732			19,704,921
Negative		(72,233,824	)		(29,594,541	)		(470,766	)		(69,688	)		(418,363	)		(3,774,823	)		(73,122,953	)		(33,439,052	)
Share of profit of associates accounted for using the equity method		7,482,890			7,728,915			—			—			—			—			7,482,890			7,728,915
Other gains (losses)		4,013,381			42,651,210			1,300,454			(183,531	)		1,380,339			5,287,375			6,694,174			47,755,054
Gain (loss) from other investments		4,308,859			42,651,210			—			—			—			—			4,308,859			42,651,210
Gain (loss) from the sale of property, plant and equipment		(295,478	)		—			1,300,454			(183,531	)		1,380,339			5,287,375			2,385,315			5,103,844
Income before tax		145,559,876			113,450,527			122,110,123			113,801,930			(12,905,233	)		(4,875,603	)		254,764,766			222,376,854
Income tax		(36,779,295	)		(75,388,994	)		(23,209,179	)		(29,108,484	)		2,491,819			1,902,387			(57,496,655	)		(102,595,091	)
NET INCOME		108,780,581			38,061,533			98,900,944			84,693,446			(10,413,414	)		(2,973,216	)		197,268,111			119,781,763
Net income attributable to:		—			—			—			—			—			—			197,268,111			119,781,763
Enersis Chile		—			—			—			—			—			—			149,907,188			96,243,583
Non-controlling interests		—			—			—			—			—			—			47,360,923			23,538,180

F-93

Line of Business	Generation						Distribution						Eliminations and others						Total
STATEMENT OF CASH FLOW	9-30-2015 ThCh$			9-30-2014 (Unaudited) ThCh$			9-30-2015 ThCh$			9-30-2014 (Unaudited) ThCh$			9-30-2015 ThCh$			9-30-2014 (Unaudited) ThCh$			9-30-2015 ThCh$			9-30-2014 (Unaudited) ThCh$
Cash flow from (used in) operating activities		254,363,734			66,830,007			132,690,580			25,775,118			(52,761,522	)		(15,822,918	)		334,292,792			76,782,207
Cash flow from (used in) investment activities		(209,997,941	)		(153,370,861	)		(62,200,758	)		(34,275,206	)		(196,231,378	)		11,078,252			(468,430,077	)		(176,567,815	)
Cash flows from (used in) financing activities		(70,272,532	)		84,417,014			(72,937,961	)		(882,542	)		225,720,013			(137,601,689	)		82,509,520			(54,067,217	)

The eliminations column corresponds to transactions between companies in different lines of business and country, primarily purchases and sales of energy and services.

36. THIRD PARTY GUARANTEES, OTHER CONTINGENT ASSETS AND LIABILITIES, AND OTHER COMMITMENTS

36.1 Direct guarantees

Creditor Of Guarantee	Debtor			Type of Guarantee	Assets Committed					Outstanding balance as of					Guarantees Released
	Company	Relationship			Type		Currency	Carrying amount		Currency	9-30-2015		12-31-2014		2015		Assets		2016		Assets		2017		Assets
Deutsche Bank / Santander Benelux	Enersis S.A.		Creditor	Deposit account		Deposit account	ThCh$		12,711,681	ThCh$		41,191,324		50,509,024		—		—		—		—		—		—
Citibank N.A.	Endesa Chile		Creditor	Pledge		Deposit account	ThCh$		593,267	ThCh$		593,267		702,470		—		—		—		—		—		—

For the nine-months periods ended September 30, 2015 and 2014, the Combined Group had future energy purchase commitments amounting to ThCh$7,713,710,525, and ThCh$4,120,859,843, respectively.

36.2 Indirect guarantees

As of September 30, 2015 and December 31, 2014, there are no indirect guarantees.

F-94

36.3 Lawsuits and Arbitration Proceedings

As of the date of these Interim Combined Financial Statements, the most relevant contingent liabilities, for which no provision have been recognized, involving Enersis Chile and its combined entities are as follows:

1. Law 25,561 on Public Emergency and Reform to the Currency System, enacted on January 6, 2002 by the Argentine authorities, voided certain provisions of the concession agreement of Enersis Chile’s combined entity Edesur. Law 25,561 also required that utility concession agreements be renegotiated within a reasonable timeframe to adjust them to the new conditions. However, the failure to renegotiate Edesur’s concession agreement prompted Enersis S.A., Chilectra S.A., Endesa Chile and Elesur S.A. (now Chilectra S.A.) (collectively, the “Claimants”) to file an arbitration petition in 2003 under the Treaty for the Promotion and Protection of Chilean-Argentine Investments before the International Center for Settlement of Investment Disputes (ICSID). The statement of claim principally requested that the ICSID declare the investment expropriated for an amount of US$1,306,875,960 (approximately ThCh$913,140,371), and seeking for the damages caused to the investment due to lack of fair and equitable treatment, in the amount of US$318,780,600 (approximately ThCh$222,738,381). The Claimants also seek, with respect to both claims, compounded annual interest of 6.9% per annum. The Claimants also claimed the sums resulting from the damages caused as from July 1, 2004. Finally, the Claimants also demanded US$ 102,164,683 (approximately ThCh$71,384,507) for Elesur S.A. (now Chilectra S.A.) due to a lower price received on the sale of its shares. In 2005, the Argentine authorities and Edesur signed a Letter of Understanding, in which the terms and conditions are established for amendments and supplements to the Concession Agreement, forecasting tariff modifications, first during a transitional period and then under an Integral Tariff Review, in which the conditions for an ordinary tariff period of 5 years will be set. The arbitration has been suspended since March 2006 in accordance with the terms of the Letter of Understanding, and the appointment of one of the arbitrators, to replace an arbitrator who resigned in 2010 has been suspended. As of December 31, 2014, the parties informed ICSID of their agreement to extend the suspension of the arbitration procedure for 12 months starting on the same date, informing also that any of the parties can request the renewal of the arbitration procedure with 30 calendar days prior notice.

2. In 2005, three lawsuits were filed against Endesa Chile, the Chilean Treasury and the Chilean Water Authority (DGA, in its Spanish acronym), which are currently being treated as a single proceeding, requesting that DGA Resolution No. 134, which established non-consumptive water rights in favor of Endesa Chile to build the Neltume hydroelectric power plant project be declared null as a matter of public policy, with compensation for damages. Alternatively, the lawsuits request the compensation for damages for the losses allegedly sustained by the plaintiffs due to the loss of their status as riparian owners along Pirihueico Lake, as well as due to the devaluation of their properties. The defendants have rejected these allegations, contending that the DGA Resolution complies with all legal requirements, and that the exercise of this right does not cause any detriment to the plaintiffs, among other arguments. The sums involved in these suits are undetermined. This case was joined with two other cases: the first one is captioned “Arrieta v. the State and Others” in the 9th Civil Court, docket 15279-2005 and the second is captioned “Jordán v. the State and Others,” in the 10th Civil Court, docket 1608-2005. With regard to these cases, an injunction has been ordered against entering into any acts and contracts concerning Endesa Chile’s water rights related to the Neltume project. On September 25, 2014, the Court of Law issued an unfavorable ruling against Endesa Chile that in essence declared the right to use water established by DGA Resolution No. 134 illegal and orders its cancellation in the corresponding Water Rights Register of the correspondent Real Estate Registrar. Endesa Chile filed an appeal and cassation resources with the Santiago Court of Appeals, which are still pending.

3. During 2010, three lawsuits for damages were filed against Endesa Chile by plaintiffs who alleged they were affected by the flooding of the Bio-Bio River in Region VIII of Chile. The plaintiffs sued Endesa Chile for losses caused by its deficient operation of the Ralco hydroelectric power plant during the flood. These three cases were joined, and a first instance ruling has been issued which denies the claim filed in all its parts. The ruling was appealed and such appeal has not yet been reviewed by the court. The plaintiffs are required to produce legal evidence proving the causal link between the operation of the Ralco hydroelectric

F-95

power plant during the floods and the damages that the plaintiffs claim they sustained as a result of deficient facility operation. On March 27, 2012, there was a first instance judgment filed, which rejected the claim filed in all its parts. The plaintiff filed an appeal on March 12, 2013, and the Court of Appeals ordered proceedings to supplement the judgment, since there were exceptions and defenses that were not resolved in the first instance judgment. On May 2, 2013, the first instance Court of Law filed a supplementary judgment, referring to the exceptions and defenses that were not resolved in the first initial judgment. On July 14, 2014, the Court of Appeals of Concepción rejected the appeal filed by the plaintiffs and confirmed the first ruling denying relief in the lawsuit. The plaintiffs filed an appeal with the Chilean Supreme Court, which on June 22, 2015, accepted the appeal and revoked the first and second instance rulings, and issued an unfavorable ruling against Endesa Chile to pay U.F. 65,679 (approximately ThCh$1,638,358). Endesa Chile paid the amount in September 2015 in the First Instance Court, and was reimbursed by insurance.Closed.

4. In July and September 2010, Ingeniería y Construcción Madrid S.A. and Transportes Silva y Silva Limitada, respectively, filed separate lawsuits against Endesa Chile and the DGA seeking to declare the annulment of DGA Resolution No. 134 that granted Endesa Chile’s water rights for the Neltume hydroelectric station. Similarly, Ingeniería y Construcción Madrid S.A. and Transportes Silva y Silva Limitada, respectively, each filed suits against DGA Resolution No. 732 that authorized the relocation of the collection point of such water rights, arguing its invalidity as a violation of public policy. Ultimately, the plaintiffs attempted to demand payment for their water rights located in the area of influence of the hydraulic works for the future Neltume hydroelectric station. Endesa Chile has rejected these claims, contending that the plaintiffs are engaging in wrongful prosecution to prevent the construction of the power plant in order to obtain monetary compensation. The evidentiary period of the complaint filed by Ingeniería y Construcción Madrid S.A. (Case No. 7036-2010) has expired, and the parties have been summoned to hear judgment. Regarding the other lawsuit (Case No. 6705-2010), requesting the annulment of DGA Resolution No. 732, on March 12, 2012 a ruling was issued that declared the proceeding as abandoned. On June 27, 2012, Ingeniería y Construcción Madrid, filed a similar claim before another Court of Law (Case C-15156-2012). On July 10, 2015, the Court issued a ruling that rejected entirely the claims of the lawsuit and required the plaintiff to pay expenses. The plaintiff filed a recourse of appeal which is pending in the Santiago Court of Appeals.

5. On May 24, 2011, Endesa Chile was served with a lawsuit filed by 19 riparian owners along the Pirihueico Lake, seeking to nullify DGA Resolution No. 732, which authorized the relocation of water rights collection for the Neltume power plant, from the Pirihueico Lake drainage 900 meters downstream along Fui River. The plaintiffs seek to have this annulment annotated at the margin of the notarized instrument that memorialized DGA Resolution No. 732, which approved the transfer of the collection. The plaintiffs also seek to have the recording of the deed struck from the Water Rights Registry, if entered, and to require the Chilean Treasury, the DGA and Endesa Chile to pay damages to the plaintiffs as a result of the challenged DGA Resolution. The plaintiffs seek to reserve their right to indicate the type and amount of damages in a subsequent legal proceeding. The claim is for an undetermined amount because the plaintiffs have requested that damages be determined in another suit, once the DGA Resolution is nullified. The discussion period has ended and the evidence action has been determined, which after notification was subject to a motion of reversal filed by the plaintiff, and to a nullity incidental plea filed by Endesa Chile, which were rejected. The proceeding was suspended by mutual agreement until March 9, 2013, after which it was immediately restarted. On August 20, 2013 the pending conciliation hearing took place without success. After the end of the ordinary, extraordinary and special periods of evidence on January 22, 2015, the parties were summoned to acknowledge the ruling, and on April 23, 2015, the Court issued a ruling accepting the complaint, declaring DGA Resolution N° 732 null of public legislation. Endesa Chile, in turn, filed a writ of appeal and reversal in the form before the Santiago Court of Appeals, which are still pending of resolution.

6. On August 22, 2013, Endesa Chile, Pehuenche and San Isidro filed before the Santiago Court of Appeals a claim against the Chilean Superintendence of Electricity and Fuels (SEF). The claim asserts the illegality of Resolution ORD No. 7230, dated August 7, 2013, in which the SEF, relying on its interpretative and

F-96

supervisory authority, decreed that consumption by distributing companies in excess of the contracted supply, with respect to electricity generators that are forced by means of a bid to supply electricity, must be covered by electricity surpluses generated by other companies. The distributors with surplus electricity can assign their surpluses to distributors with deficits, irrespective of the will of the respective generator. The claim asserts this is contrary to the law and exceeds SEF’s powers and authority, resulting in an illegal resolution.

An injunction was requested, which was denied in the San Isidro and Pehuenche suits but was granted in the Endesa Chile suit. As a result, the effects of the decree are suspended. The three claims were heard one after the other and the result were communicated to all the companies. On April 10, 2014, the claims were dismissed as having been filed outside of the period allowed by law. An appeal was filed against such resolution before the Chilean Supreme Court, which accepted the appeal on July 8, 2014 and found the claim was filed in a timely manner. The cases were remanded to the Santiago Court of Appeals to determine the validity of the claim, and on January 29, 2015 the Court rejected the claims filed. The company filed a writ of appeal to the resolution before the Supreme Court, which finally rejected the writ filed and confirmed the ruling of the Santiago Court of Appeals, which did not accept the electric complaint attempted.

7. In August 2013, the Chilean Superintendence of the Environment (SMA) filed charges against Endesa Chile alleging several violations of Exempt Resolution No. 206, dated August 2, 2007 and its supplementary and explanatory resolutions that environmentally certified the Bocamina Thermal Power Plant Extension Project. These alleged violations are related to the cooling system discharge channel, an inoperative Bocamina I desulphurizer, non-compliance with information delivery obligations, surpassing CO limits, failures in the acoustic perimeter fence of Bocamina I, excessive noise levels and having no technological barriers that prevent the massive entry of biomass in the intake of the central power plant. Endesa Chile submitted a compliance program that was not approved. On November 27, 2013, SMA added two additional violations to its charges. Endesa Chile presented its defense in December 2013, partially recognizing some of these violations (which could reduce the fine by 25% in case of recognition) and contesting the remainder. On August 11, 2014, SMA passed Resolution No. 421 that fined Endesa Chile 8,640.4 UTA for environmental non-compliances that are the subject matter of the sanctioning proceeding. Endesa Chile filed an illegality claim against the SMA before the Third Environmental Court of Valdivia, which on March 27, 2015 issued a ruling that partially annulled the sanctions imposed of by the SMA, instructing it to consider aggravating circumstances evidenced in connection with the calculation of the fine imposed. The company filed a writ of reversal in substance before the Chilean Supreme Court, which is pending resolution.Closed.

8. On May 12, 2014, Compañía Eléctrica Tarapacá S.A., (Celta) formally filed an arbitration claim against Compañía Minera Doña Inés de Collahuasi, requesting that the Arbitration Court of Law declare that through the contracts entered into in 1995 and 2001, the parties have established a long-term contractual relation, characterized by the economic balance that there must be in their reciprocal services supplied and that, due to the above, greater costs corresponding to the investment that must be made to comply with the emission standard contained in DS (Supreme Decree) (MMA) No. 13, 2011 must be shared by the parties. Based on this, the defendant should start paying up to the maturity of the contract, a fixed monthly charge that as of March 31, 2020 amounts to US$72,275,000 (approximately ThCh$50,499,988) for the proportional part of the investments that the defendant must pay due to the Supreme Decree mentioned above.

The claim was notified on July 3, 2014. On August 8, 2014 Collahuasi contested Celta’s claim and filed a counterclaim against Celta requesting that the Court declare that Celta has violated the prohibition to call on as precedent what was agreed to in the modifications of the 2009 supply contracts, reserving the right to discuss and prove the amount of damages. On August 26, 2014, Celta filed its response to the main claim and contested the counterclaim. On September 11, 2014, Collahuasi filed its rejoinder to the main claim and its response to the counterclaim. On October 1, 2014, Celta filed its response to the counterclaim. Additionally, the Arbitration Judge formulated a questionnaire with questions separately to each one of the parties and also with common questions for both.

F-97

Once these were responded, the arbitrator gave the parties a deadline of January 16, 2015 to contest or observe the answers provided and the documents attached specifying the contrary. Afterwards, several conciliation meetings were held between the parties, chaired by the Arbitrating Judge which did not succeed. The evidence action is pending in order to start the evidentiary stage.

The management of Enersis Chile considers that the provisions recorded in the Interim Combined Financial Statements are adequate to cover the risks resulting from litigation described in this Note. It does not consider there to be any additional liabilities other than those specified.

Given the characteristics of the risks covered by these provisions, it is not possible to determine a reasonable schedule of payment dates if there are any.

36.4 Financial restrictions

As of September 30, 2015, we had no debt obligations and are therefore not affected by any covenants or events of default. However, a number of the Combined Group’s combined companies’ loan agreements, include the obligation to comply with certain financial ratios, which is normal in contracts of this nature. There are also affirmative and negative covenants requiring the monitoring of these commitments. In addition, there are restrictions in the events-of-default clauses of the agreements which require compliance.

1. Cross Default

Some of the financial debt contracts of Endesa Chile contain cross default clauses. The credit line agreements governed by Chilean law, which Endesa Chile signed in February 2013, stipulate that cross default arises only in the event of non-compliance by the borrower itself, with no reference made to its subsidiaries. In order to accelerate payment of the debt in these credit lines due to cross default originating from other debt, the amount overdue of a debt must exceed US$50 million, or the equivalent in other currencies, and other additional conditions must be met such as the expiry of grace periods. Since being signed, these credit lines have not been disbursed. They mature in February 2016. Endesa Chile’s international credit line governed by New York State law, which was signed in July 2014 and expires in July 2019, also makes no reference to its subsidiaries, so cross default arises only in the event of non-compliance by the borrower itself. For the repayment of debt to be accelerated under this facility due to cross default on another debt, the amount in default should exceed US$50 million or its equivalent in other currencies. It must also meet other conditions, including the expiration of any grace periods, and a formal notice of intent to accelerate the debt repayment must have been served by creditors representing more than 50% of the amount owed or committed in the contract. This line of credit has not currently been utilized.

Regarding the bond issues of Endesa Chile registered with the United States Securities and Exchange Commission (the SEC), commonly called “Yankee bonds”, a cross default can be triggered by another debt of the same company or of any of their subsidiaries, for any amount overdue provided that the principal of the debt giving rise to the cross default exceeds US$30 million or its equivalent in other currencies. Debt acceleration due to cross default does not occur automatically but has to be demanded by the holders of at least 25% of the bonds of a certain series of Yankee bonds. The Endesa Yankee bonds mature in 2024, 2027, 2037 and 2097. For the specific Yankee Bond that was issued in April 2014 and matures in 2024, the threshold for triggering cross default increased to US$50 million or its equivalent in other currencies.

The Endesa Chile bonds issued in Chile state that cross default can be triggered only by the default of the issuer when the amount in default exceeds US$50 million or its equivalent in other currencies. Debt acceleration requires the agreement of at least 50% of the holders of the bonds of a certain series.

2. Financial covenants

Financial covenants are contractual commitments with respect to minimum or maximum financial ratios that a company is obliged to meet at certain periods of time (quarterly, annually, etc.). Most of the financial covenants of the Combined Group limit the level of indebtedness and evaluate the ability to generate cash flows in order to service the companies’ debts. Various companies are also required to certify these covenants periodically. The types of covenants and their respective limits vary according to the type of debt.

F-98

The Endesa Chile bonds issued in Chile include the following financial covenants whose definitions and calculation formulas are established in the respective indentures:

Series H

• Consolidated Debt Ratio: The consolidated debt ratio, which is Financial debt to Capitalization, must be no more than 0.64. Financial debt is the sum of interest-bearing loans, current; Interest-bearing loans, non-current; Other financial liabilities, current; Other financial liabilities, non-current; and Other obligations guaranteed by the issuer or its subsidiaries; while Capitalization is the sum of Financial liabilities, Equity attributable to the shareholders of Endesa Chile and Non-controlling interests. As of September 30, 2015, the ratio was 0.37.

• Consolidated Equity: A minimum Equity of Ch$760,468 million must be maintained; this limit is adjusted at the end of each year as established in the indenture. Equity corresponds to Equity attributable to the shareholders of Endesa Chile. As of September 30, 2015, the equity of Endesa Chile was Ch$1,418,132 million.

• Financial Expense Coverage: A financial expense coverage ratio of at least 1.85 must be maintained. Financial expense coverage is the quotient between i) the gross margin plus Financial income and dividends received from associated companies, and ii) Financial expenses; both items refer to the period of four consecutive quarters ending on the quarter being reported. For the period ended September 30, 2015, this ratio was 7.32.

• Net Asset Position with Related Companies: A Net asset position must be maintained with related companies of no more than a hundred million dollars. The Net asset position with related companies is the difference between i) the sum of Accounts receivable from related entities, current, Accounts receivable from related entities, non-current, less transactions in the ordinary course of business at less than 180 days term, short-term transactions of associates of Endesa Chile in which Enersis Chile has no participation, and long-term transactions of associates of Endesa Chile in which Enersis Chile has no participation; and ii) the sum of Accounts payable to related entities, current; Accounts payable to related entities, non-current, less transactions in the ordinary course of business at less than 180 days term; short-term transactions of associates of Endesa Chile in which Enersis Chile has no participation; and long-term transactions of associates of Endesa Chile in which Enersis Chile has no participation. As of September 30, 2015, using the exchange rate prevailing on that date, the Net asset position with related companies was a negative US$418.87 million, indicating that Enersis Chile is a net creditor of Endesa Chile rather than a net debtor.

Series M

• Consolidated Debt Ratio: The consolidated debt ratio, which is Financial debt to Capitalization, must be no more than 0.64. Financial debt is the sum of Interest-bearing loans, current; Interest-bearing loans, non-current; Other financial liabilities, current; and Other financial liabilities, non-current; while Capitalization is the sum of Financial liabilities, Equity attributable to the shareholders of Enersis and Non-controlling interests. As of As of September 30, 2015, the debt ratio was 0.37.

• Consolidated Equity: Same as for Series H.

• Financial Expense Coverage Ratio: Same as for Series H.

The rest of Endesa Chile’s debt and the undisbursed credit lines include other covenants such as leverage and debt coverage ratios (debt/EBITDA ratio), while the Yankee bonds are not subject to financial covenants.

The most restrictive financial covenant for Endesa Chile as of September 30, 2015 was the Debt Ratio requirement for the credit line under Chilean law, which expires in February 2016.

Lastly, in most of the contracts, debt acceleration for non-compliance with these covenants does not occur automatically but is subject to certain conditions, such as a cure period.

F-99

As of September 30, 2015 and December 31, 2014, none of combined entities were in default under their financial obligations summarized here or other financial obligations whose defaults might trigger the acceleration of their financial commitments.

36.5 Other Information

Centrales Hidroeléctricas de Aysén, S.A.

In May, 2014, the Committee of Ministers revoked the Environmental Qualification Resolution (RCA) of Hidroaysén project in which our combined entity, Endesa Chile, participates by accepting some of the claims filed against this project. It is of public knowledge that this decision was reported before the environmental courts of Valdivia and Santiago. On January 28, 2015, it was made public that the water rights request made by Centrales Hidroeléctricas de Aysén S.A. (hereinafter “Hidroaysén”) had been partially denied in 2008. Endesa Chile has expressed its intention to thrive at Hidroaysén the defense for water rights and the environmental qualification granted to the project in the corresponding instances, continuing with the judicial actions already started or implementing new administrative or judicial actions that are necessary to this end, and it maintains the belief that hydric resources of Aysén region are important for the energy development of the country. Nevertheless, given the current situation, there is uncertainty on the recovery of the investment made so far at Hidroaysén, since it depends both from judicial decisions and from definitions in the energy agenda which cannot be foreseen at present, consequently the investment is not included in the portfolio of Endesa Chile’s immediate projects. Consequently, at closing of Fiscal Year 2014, Endesa Chile recorded a provision for impairment of its participation in Hidroaysén S.A. amounting to Ch$ 69,066 million (approximately US$ 121 million). See note 14.1.a). The financial and accounting effects for Enersis Chile of the impairment provision at Endesa Chile for its participation in Hidroaysén resulted into a charge against net results attributable to the shareholders of Enersis Chile by Ch$ 41,426 million (approximately US$ 73 million).

37. SANCTIONS

The following companies belonging to the Combined Group have received sanctions from the administrative authorities:

a) Pending lawsuits of the combined entities

1. Endesa Chile

• In January 2013, Endesa Chile was notified of Superintendence of Electricity and Fuels (SEF) Exempt Resolution 2496 fining the company 10 UTA (approximately ThCh$4,952) for violating Article 123 of Decree Law (DFL) 4/20,018 of 2006 due to its failure to report to the SEF the commissioning of its electricity facilities by the deadline provided for in that law. To clear the charges, Endesa Chile paid the fine in full.

Closed and paid.

• In the first quarter of 2013, Endesa Chile was notified of three resolutions issued by the Health SEREMI (Regional Ministerial Office) of the Maule Region, Resolutions 1057, 085, and 970, which ruled on health summary proceedings RIT Nos. 355/2011, 354/2011, and 256/2011, respectively, imposing a 20 UTM fine for each of the proceedings. The fines were imposed for the following violations: Resolution 1057 penalizes a health violation of Decree 594 of 1999, Regulations on Basic Health and Environmental Conditions in the Workplace, specifically, at the Cipreses Plant facilities; this fine has been paid in full. Resolution 085 penalizes a violation of Executive Decree 90/2011, which requires a statement of the emissions made in 2009 and 2010 by a 20.8-kW-capacity Siemens-Schukertwerke A6 power generator located at the Bocatoma Maule Isla facility. This resolution is currently being challenged. Resolution 970 penalizes a violation of Executive Decree 90/2011, which requires a statement of the emissions made in 2009 and 2010 by a 34 kW Conex generator located at the Bocatoma Maule Isla facility. This resolution is currently being challenged. Total: 60 UTA (approximately ThCh$2,626).

F-100

• Endesa Chile received notification in September 2013 of ORD No. 603 issued by the Superintendence of the Environment (SMA) initiating sanction proceedings and filing charges against Endesa Chile as Holder of the Expansion Project for Unit Two of the Bocamina Plant for a number of violations against environmental regulations and the RCA environmental regulation instrument. The sanction proceedings are the result of inspections conducted by SMA personnel on February 13 and 14 and on March 19, 26, and 27, 2013, at the Bocamina thermoelectric facilities. The inspections found a number of violations of Exempt Resolution 206 of August 2, 2007 (RCA 206/2007), which was clarified by Exempt Resolutions 229 of August 21, 2007 (RCA 229/2007) and 285 of October 8, 2007 (RCA 285/2007) giving environmental approval to this expansion project. The infractions consist primarily of (i) not having a discharge channel for the cooling system that extends 30 meters into the ocean from the edge of the beach; (ii) not having the Bocamina I desulfurization unit in operation; (iii) not submitting the information requested by the SMA’s official on past records of on-line emissions reports (CEM reports) from the startup of operations until the present time; (iv) exceeding the CO limit for Bocamina I set in the RCA for Bocamina II in January 2013; (v) defects and gaps between panels in the Bocamina I perimeter acoustic enclosure; (vi) noise emissions that exceed regulatory limits; and (vii) not having technological barriers that prevent biomass from pouring into the plant’s intake.

Endesa Chile submitted a compliance schedule within the time frame allotted, that was rejected. On November 27, 2013, the SMA reformulated the charges filed, adding two new charges (failure to comply with RCA 206/2007, considered a grave violation, and failure to comply with the information requirement issued in Ord UIPS 603, which is also considered a grave violation).

On August 11, 2014, the SMA issued Resolution No. 421 which penalized Endesa Chile for these environmental breaches applying a fine of 8,640.4 UTA (approximately ThCh$4,537,247). Endesa Chile filed a counter-claim of illegality before the Third Environmental Court of Valdivia, which on March 27, 2015, resolved to partially annul the fines imposed by the SMA and order it to consider the aggravated circumstances in relation to the calculation of the fine. The parties, against such resolution, filed a writ of reversal with the Chilean Supreme Court, which is currently pending.

• The Labor Directorate (Inspección del Trabajo) of the Bío Bío Region fined Endesa Chile ThCh$2,523 for failure to fulfill its duties as the operating company after confirming, on June 12, 2014, an accident suffered by a worker employed by the contractor Metalcav at the Bocamina II worksite. Payment of the fine is in process at this time.

Closed and paid.

• On May 20, 2014, the Valparaíso Court of Appeals confirmed the fine of ThCh$2,646 imposed by the Quintero Local Police Court (Juzgado de Policía Local) upholding CONAF’s claim that Endesa Chile cut trees without first having a forestry management plan approved by CONAF. The trees were cut in the Valle Alegre area in lot 22, site 3 in the municipality of Quintero in order to clear trees from the high voltage wires. The fine was paid through the appropriate court.

Closed and paid.

• On June 23, 2014, the SISS (Sanitary Services Superintendence) fined Endesa Chile 13 UTA (approximately ThCh$6,599) for discharging liquid waste from the San Isidro II thermal plant during the cooling process in excess of the amount permitted under D.S. 90 on sulfate concentration.

Closed and paid.

• In July 2014 the Coronel Labor Directorate fined Endesa Chile for labor legislation violations relating to staff serving at the Bocamina plant. The infringements are: i) exceeding the maximum of two hours overtime per day; ii) not allowing staff to rest on Sundays; iii) incorrectly recording attendance; iv) exceeding the maximum 10-hour working day. The fine imposed for these offenses totaled Ch$10,122,720, which the company has paid in full.

Closed and paid.

F-101

• The Labor Directorate, through resolution No.1209/15/16, fined Endesa Chile Ch$2,594,400 for failure to fulfill labor resolutions authorizing an exceptional distribution of the working day. The fine is in process of payment.

• On September 25, 2015, the Health SEREMI of the Bio Bío Region, through resolution No. 158s3890 fined Endesa Chile 500 UTM (approximately ThCh$22,122) for failure to supervise the personal delivery of safety materials for asbestos management to each worker and instead doing it through group discussion. The claim it is not supported by any legal regulation, as such Endesa Chile filed an administrative proceeding, which is currently pending.

2. Pehuenche

• On October 2, 2013, the Superintendence of Securities and Insurance (SVS) fined Empresa Eléctrica Pehuenche S.A. and its Chief Executive Officer for alleged violations of Article 54 of Law 18,046 “over the right of all shareholders to examine the annual report, balance sheet, inventory, minutes, ledgers, and external auditors’ reports during the 15 days prior to a company’s ordinary shareholders’ meeting.” It resolved the following:

“To impose on Empresa Eléctrica Pehuenche S.A. and its Chief Executive Officer, Lucio Castro Márquez, a fine of 150 UF each for violation of Article 54 of Law 18,046 and Article 61 of the Regulations on Corporations in effect at the time the events penalized occurred.”

The fine was applied as a result of a claim made by Tricahue Inversiones S.A. against Pehuenche based on the fact that, on April 24, 2012, the Tricahue S.A. Chief Executive Officer went to Pehuenche’s offices to examine the minute books of the company’s Board of Directors and stated that he was first required to sign a statement of confidentiality and indemnity in Pehuenche’s favor, which he considered illegal and arbitrary.

On August 24, 2012, Tricahue Inversiones S.A. withdrew its complaint filed against Empresa Eléctrica Pehuenche S.A.

The company and its Chief Executive Officer, respectively, exercised the action provided for under Article 30 of Decree Law 3,538, within the conditions and time frame required, to file a claim against the SVS resolution with the ordinary courts of law to have the resolution revoked.

Finally, on May 20, 2014, the Court recognized the claim filed and revoked the sanction applied as groundless.

Closed.

3. Chilectra

• During the fiscal year 2013, Chilectra S.A. was sanctioned by the SEF with 7 fines amounting to ThCh$227,507.

• During the fiscal year 2014, Chilectra S.A. was sanctioned by the SEF with 8 fines amounting to ThCh$459,453.

• During the third quarter of 2015, Chilectra S.A. was sanctioned by the SEF with 3 fines amounting to (i) ThCh$778,320; (ii) ThCh$1,327; and (iii) ThCh$1,769,720. All sanctions have been appeal to the authorities and the courts of justice.

The Combined Group has not received any other fines from the SVS or from any other administrative authorities.

F-102

38. ENVIRONMENT

Environmental expenses for the nine months ended September 30, 2015 and 2014, are as follows:

Company Incurring the Cost	Project	Description	9-30-2015 ThCh$												9-30-2014 (Unaudited) ThCh$
			Costs incurred		Capitalized Cost		Expense amount		Costs to be incurred in the future		Estimate date of incurring cost		Total Expenditures		Costs incurred prior period
Pehuenche	Environmental costs CC.HH.	Studies, monitoring, laboratory analysis, removal and final disposal of solid waste in hydro electrical plants (C.H.)		2,666		—		2,666		—		—		2,666		522
Endesa Chile	Plants environmental costs	Waste treatment, sanitation		1,396,926		—		1,396,926		—		—		1,396,926		744,298
		Emissions monitoring, CEMS project, demolition NOX		1,855		1,855		—		—		—		1,855		6,804,120
		CEMS project		61		61		—		—		—		61		8,203
Celta	Environmental costs in Thermal Plants	Environmental costs in Thermal Plants		118,417		—		118,417		—		—		118,417		10,706,540
Canela	Plants environmental costs	Water quality monitoring and analysis and Canela’s sanitation		4,713		—		4,713		—		—		4,713		10,488
Chilectra	Vegetation control in high voltage networks	Pruning of trees and vegetation near high voltage		42,570		—		42,570		—		—		42,570		8,878
	Improvements to MT/BT network	Space Cab (4,285 mts network) / Preliminary assembly (78,578 mts network)		1,841,766		1,841,766		—		1,205,829		12-31-2015		3,047,595		2,547,219
	Vegetation control in MT/BT network	Garden maintenance/Weed removal at substations		85,080		—		85,080		—		—		85,080		163,675
	Noise control	Noise mitigation		4,475		—		4,475		—		—		4,475		4,559
Total				3,498,529		1,843,682		1,654,847		1,205,829				4,704,358		20,998,502

F-103

39. SUMMARIZED FINANCIAL INFORMATION OF COMBINED ENTITIES

As of September 30, 2015 and December 31, 2014, summarized financial information of our principal combined entities is as follows:

	9-30-2015
	Type of financial statements		Current Assets ThCh$		Non- Current Assets ThCh$		Total Assets ThCh$		Current Liabilities ThCh$		Non- Current Liabilities ThCh$		Equity ThCh$			Total Equity and Liabilities ThCh$		Revenues ThCh$		Raw Materials and Consumable Used ThCh$			Contribution Margin ThCh$		Gross Operating Income ThCh$			Operating Income ThCh$			Financial Results ThCh$			Income before Taxes ThCh$			Income Taxes ThCh$			Profit (Loss) ThCh$			Other Comprehensive Income ThCh$			Total Comprehensive Income ThCh$
Chilectra S.A.		Consolidated		259,773,656		734,777,028		994,550,684		202,670,567		45,279,044		746,601,073			994,550,684		930,399,001		(725,894,545	)		204,504,456		138,620,462			112,081,319			8,728,350			122,112,442			(23,209,179	)		98,903,263			(183,808	)		98,719,455
Grupo Servicios Informaticos e Inmobiliarios Ltda.		Consolidated		49,330,094		11,951,903		61,281,997		3,577,392		1,290,616		56,413,989			61,281,997		5,682,890		—			5,682,890		(699,249	)		(787,753	)		1,651,896			2,338,004			(116,699	)		2,221,305			(80,206	)		2,141,099
Empresa Eléctrica Pehuenche S.A.		Separate		51,331,739		202,860,528		254,192,267		33,492,198		52,425,061		168,275,008			254,192,267		141,602,768		(23,762,784	)		117,839,984		113,801,316			107,338,530			1,414,749			108,753,279			(24,629,993	)		84,123,286			31,487			84,154,773
Compañĺa Eléctrica Tarapacá S.A.		Separate		68,286,167		473,689,974		541,976,141		88,211,994		41,975,664		411,788,483			541,976,141		186,150,897		(119,758,064	)		66,392,833		55,259,003			40,739,684			20,853,310			61,304,173			(11,884,703	)		49,419,470			(2,494	)		49,416,976
Grupo Endesa Chile		Consolidated		473,803,232		2,800,901,616		3,274,704,848		804,375,100		1,152,529,886		1,317,799,862			3,274,704,848		1,131,407,459		(712,863,644	)		418,543,815		320,536,537			229,351,659			(95,288,053	)		145,559,919			(36,779,295	)		108,780,581			(82,350,586	)		26,429,995
Grupo Inversiones GasAtacama Holding Ltda.		Consolidated		235,346,168		209,103,678		444,449,846		28,289,221		46,454,388		369,706,237			444,449,846		145,193,316		(89,693,906	)		55,499,410		45,213,282			36,456,581			8,334,235			44,783,031			(10,021,277	)		34,761,754			(584,097	)		34,177,657
	12-31-2014
	Type of financial statements		Current Assets ThCh$		Non- Current Assets ThCh$		Total Assets ThCh$		Current Liabilities ThCh$		Non- Current Liabilities ThCh$		Equity ThCh$			Total Equity and Liabilities ThCh$		Revenues ThCh$		Raw Materials and Consumable Used ThCh$			Contribution Margin ThCh$		Gross Operating Income ThCh$			Operating Income ThCh$			Financial Results ThCh$			Income before Taxes ThCh$			Income Taxes ThCh$			Profit (Loss) ThCh$			Other Comprehensive Income ThCh$			Total Comprehensive Income ThCh$
Chilectra S.A.		Consolidated		283,754,811		698,940,269		982,695,080		261,250,997		51,025,398		670,418,685			982,695,080		1,127,892,544		(855,757,752	)		272,134,792		182,260,785			154,106,769			8,282,495			161,984,048			(37,256,549	)		124,727,499			(4,520,678	)		120,206,821
Inmobiliaria Manso de Velasco Ltda.		Consolidated		47,631,734		12,103,210		59,734,944		3,605,662		526,608		55,602,674			59,734,944		12,596,339		(2,146,800	)		10,449,539		5,567,964			5,359,685			587,792			27,044,615			(3,029,840	)		24,014,775			(39,600	)		23,975,175
ICT Servicios Informáticos Ltda.		Separate		2,214,084		555,542		2,769,626		3,005,476		1,069,158		(1,305,008	)		2,769,626		4,978,226		—			4,978,226		(1,498,309	)		(1,541,569	)		68,519			(1,473,050	)		105,583			(1,367,466	)		(162,551	)		(1,530,017	)
Empresa Eléctrica Pehuenche S.A.		Separate		75,414,557		209,069,274		284,483,831		59,142,217		53,952,811		171,388,803			284,483,831		227,886,302		(34,362,209	)		193,524,093		188,824,599			180,521,784			955,150			181,476,935			(38,314,654	)		143,162,280			(51,043	)		143,111,237
Compañĺa Eléctrica Tarapacá S.A.		Separate		77,067,775		450,573,978		527,641,753		110,849,007		30,918,614		385,874,132			527,641,753		318,959,142		(196,105,061	)		122,854,082		107,687,954			91,702,959			18,891,133			110,594,093			(20,693,726	)		89,900,366			(604	)		89,899,762
Soc. Concesionaria Túnel El Melón S.A.		Separate		19,183,735		7,107,942		26,291,677		3,709,123		1,789,703		20,792,851			26,291,677		10,484,435		(3,751	)		10,480,684		9,152,206			6,547,832			82,925			6,630,757			(800,038	)		5,830,719			(12,156	)		5,818,563
Grupo Endesa Chile		Consolidated		512,188,512		2,722,809,245		3,234,997,757		667,580,516		1,060,586,957		1,506,830,284			3,234,997,757		1,230,985,755		(750,216,671	)		480,769,084		366,039,750			252,273,385			(77,345,373	)		163,166,269			(34,098,106	)		129,068,163			(73,959,262	)		55,108,901
Grupo Inversiones GasAtacama Holding Ltda.		Consolidated		197,276,197		216,893,717		414,169,914		29,892,670		48,748,663		335,528,581			414,169,914		179,474,707		(99,313,387	)		80,161,320		59,020,205			46,178,851			(4,406,559	)		41,772,291			(12,407,764	)		29,364,528			51,288,697			80,653,225

F-104

40. SUBSEQUENT EVENTS

The combined financial statements reflect our evaluation of all events that have occurred subsequent to September 30, 2015 through November 30, 2015, which is the date that the combined financial statements are available to be issued.

F-105

APPENDIX 1. ENERSIS CHILE COMBINED GROUP COMBINED ENTITIES

This appendix is part of Note 2.4, “Combined Entities”.

It presents the Combined Group’s percentage of control in each company.

Taxpayer ID No. (RUT)	Company (in alphabetical order)	Currency	Percentage of control at 9/30/2015									Percentage of control at 12/31/2014									Country		Activity
			Direct			Indirect			Total			Direct			Indirect			Total
96,773,290-7	Aguas Santiago Poniente S.A. (3)	Chilean peso		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		00.00	%		Chile	Sanitation services
76,003,204-2	Central Eólica Canela S.A.	Chilean peso		0.00	%		75.00	%		75.00	%		0.00	%		75.00	%		75.00	%		Chile	Promotion and development of renewable energy projects
99,573,910-0	Chilectra Inversud S.A.	Chilean peso		0.00	%		100.00	%		100.00	%		0.00	%		100.00	%		100.00	%		Chile	Portfolio company
96,800,570-7	Chilectra S.A.	Chilean peso		99.08	%		0.01	%		99.09	%		99.08	%		0.01	%		99.09	%		Chile	Ownership interest in companies of any nature
96,770,940-9	Compañía Eléctrica Tarapacá S.A.	Chilean peso		3.78	%		96.21	%		99.99	%		3.78	%		96.21	%		99.99	%		Chile	Complete electric energy cycle
96,764,840-K	Constructora y Proyectos Los Maitenes S.A. (3)	Chilean peso		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		Chile	Construction and facilities
96,783,910-8	Empresa Eléctrica de Colina Ltda.	Chilean peso		0.00	%		100.00	%		100.00	%		0.00	%		100.00	%		100.00	%		Chile	Complete energy cycle and related supplies
96,504,980-0	Empresa Eléctrica Pehuenche S.A.	Chilean peso		0.00	%		92.65	%		92.65	%		0.00	%		92.65	%		92.65	%		Chile	Complete electric energy cycle
91,081,000-6	Empresa Nacional de Electricidad S.A	Chilean peso		59.98	%		0.00	%		59.98	%		59.98	%		0.00	%		59.98	%		Chile	Complete electric energy cycle
76,014,570-K	Inversiones GasAtacama Holding Ltda. (1)	U.S. dollar		0.00	%		100.00	%		100.00	%		0.00	%		100.00	%		100.00	%		Chile	Natural gas transportation
96,830,980-3	GasAtacama S.A.	U.S. dollar		0.00	%		100.00	%		100.00	%		0.00	%		100.00	%		100.00	%		Chile	Exploitation, generation, transmission and distribution of electric energy and natural gas
78,932,860-9	GasAtacama Chile S.A.	U.S. dollar		0.00	%		100.00	%		100.00	%		0.00	%		100.00	%		100.00	%		Chile	Company management
77,032,280-4	Gasoducto TalTal S.A.	Chilean peso		0.00	%		100.00	%		100.00	%		0.00	%		100.00	%		100.00	%		Chile	Natural gas transportation, sale and distribution
78,952,420-3	Gasoducto Atacama Argentina S.A.	U.S. dollar		0.00	%		100.00	%		100.00	%		0.00	%		100.00	%		100.00	%		Chile	Natural gas exploitation and transportation
76,676,750-8	GNL Norte S.A.	Chilean peso		0.00	%		100.00	%		100.00	%		0.00	%		100.00	%		100.00	%		Chile	Energy and fuel production, transportation and distribution
76,107,186-6	Servicios Informáticos e Inmobiliarios Ltda. (2)	Chilean peso		99.00	%		1.00	%		100.00	%		99.00	%		1.00	%		100.00	%		Chile	Information Technology services
79,913,810-7	Inmobiliaria Manso de Velasco Ltda. (2)	Chilean peso		99.99	%		0.00	%		99.99	%		99.99	%		0.00	%		99.99	%		Chile	Construction and works
96,800,460-3	Luz Andes Ltda.	Chilean peso		0.00	%		100.00	%		100.00	%		0.00	%		100.00	%		100.00	%		Chile	Energy and fuel transportation, distribution and sales
96,905,700-K	Progas S.A.	Chilean peso		0.00	%		100.00	%		100.00	%		0.00	%		100.00	%		100.00	%		Chile	Purchase, production, transportation and commercial distribution of natural gas
77,047,280-6	Sociedad Agrícola de Cameros Ltda.	Chilean peso		0.00	%		57.50	%		57.50	%		0.00	%		57.50	%		57.50	%		Chile	Financial investments
96,671,360-7	Sociedad Concesionaria Túnel El Melón S.A.(4)	Chilean peso		0.00	%		0.00	%		0.00	%		0.00	%		100.00	%		100.00	%		Chile	Execution, construction and operation of the El Melón tunnel

(1) On April 22, 2014, Endesa Chile acquired the remaining 50% equity interest in Inversiones GasAtacama Holding Limitada, (See Note 5).

(2) On December 31, 2014, Inmobiliaria Manso de Velasco was merged with ICT, the latter being the legal successor company under the name of Servicios Informáticos e Inmobiliarios Ltda.

(3) On December 30, 2014, the companies Aguas Santiago Poniente SA and Constructora y Proyectos los Maitenes SA were sold.

(4) On January 9, 2015, Sociedad Concesionaria Túnel El Melón was sold. (See Note 2.41.)

F-106

APPENDIX 2. CHANGES IN THE SCOPE OF COMBINATION

This appendix is part of Note 2.4.1 “Changes in the scope of combination”.

Incorporation into the scope of combination:

Company	Ownership Interest								Ownership Interest
	September 30, 2015								December 31, 2014
	Direct		Indirect		Total		Consolidation Method		Direct		Indirect			Total			Consolidation Method
Inversiones GasAtacama Holding Ltda.		—		—		—		—		—		100.00	%		100.00	%		Full integration
Atacama Finance Co. (1)		—		—		—		—		—		—			—			Full integration
Energex Co. (1)		—		—		—		—		—		—			—			Full integration
GasAtacama S.A.		—		—		—		—		—		100.00	%		100.00	%		Full integration
GasAtacama Chile S.A.		—		—		—		—		—		100.00	%		100.00	%		Full integration
Gasoducto TalTal S.A.		—		—		—		—		—		100.00	%		100.00	%		Full integration
Gasoducto Atacama Argentina S.A.		—		—		—		—		—		100.00	%		100.00	%		Full integration
GNL Norte S.A.		—		—		—		—		—		100.00	%		100.00	%		Full integration
Progas S.A.		—		—		—		—		—		100.00	%		100.00	%		Full integration

See Note 2.4.1.

(1) On 17 September 2014 the companies Atacama Finance Co and Energex Co were dissolved.

Companies eliminated from the scope of combination:

Company	Ownership Interest											Ownership Interest
	September 30, 2015											December 31, 2014
	Direct			Indirect			Total			Consolidation Method		Direct		Indirect			Total			Consolidation Method
Aguas Santiago Poniente S.A.		—			—			—			—		—		78.88	%		78.88	%		Full integration
Constructora y Proyectos Los Maitenes S.A.		—			—			—			—		—		55.00	%		55.00	%		Full integration
Sociedad Concesionaria Túnel El Melón S.A.		0.00	%		100.00	%		100.00	%		Full integration		—		—			—			—

F-107

APPENDIX 3. ASSOCIATED COMPANIES AND JOINT VENTURES

This appendix is part of Note 3.i, “Investments accounted for using the equity method”.

Taxpayer ID No. (RUT)	Company (in alphabetical order)	Currency	Ownership Interest at 9/30/2015									Ownership Interest at 12/31/2014									Type of Relationship	Country		Activity
			Direct			Indirect			Total			Direct			Indirect			Total
96,806,130-5	Electrogas S.A.	U.S. dollar		0.00	%		42.50	%		42.50	%		0.00	%		42.50	%		42.50	%	Associate		Chile	Portfolio company
76,418,940-K	GNL Chile S.A.	Chilean peso		0.00	%		33.33	%		33.33	%		0.00	%		33.33	%		33.33	%	Associate		Chile	Promotion of liquefied natural gas supply project
76,788,080-4	GNL Quintero S.A.	U.S. dollar		0.00	%		20.00	%		20.00	%		0.00	%		20.00	%		20.00	%	Associate		Chile	Development, design and supply of liquid natural gas regasifying terminal
76,652,400-1	Centrales Hidroeléctricas De Aysén S.A.	Chilean peso		0.00	%		51.00	%		51.00	%		0.00	%		51.00	%		51.00	%	Joint venture		Chile	Development and operation of a hydroelectric plant
76,041,891-9	Aysén Transmisión S.A.	Chilean peso		0.00	%		51.00	%		51.00	%		0.00	%		51.00	%		51.00	%	Joint venture		Chile	Development and operation of a hydroelectric plant
76,091,595-5	Aysén Energía S.A.	Chilean peso		0.00	%		51.00	%		51.00	%		0.00	%		51.00	%		51.00	%	Joint venture		Chile	Development and operation of a hydroelectric plant
77,017,930-0	Transmisora Eléctrica de Quillota Ltda.	Chilean peso		0.00	%		50.00	%		50.00	%		0.00	%		50.00	%		50.00	%	Joint venture		Chile	Electric energy transportation and distribution

F-108

APPENDIX 4. ADDITIONAL INFORMATION ON FINANCIAL DEBT

This appendix is part of Note 20, “Other financial liabilities.” The following tables present the contractual undiscounted cash flows by type of financial debt:

a) Bank borrowings

Summary of bank borrowings by currency and maturity

Country	Currency	Nominal Interest Rate			Current						Non-current												Current						Non-current
					Maturity				Total Current at 12/31/2014		Maturity										Total Non- current at 9/30/2015		Maturity				Total Current at 12/31/2013		Maturity										Total Non-current  at 12/31/2014
					One to three months		Three to twelve months				One to two years		Two to three years		Three to four years		Four to five years		More than five years				One to three months		Three to twelve months				One to two years		Two to three years		Three to four years		Four to five years		More than five years
					ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$
Chile	US$		5.98	%		574,764		—		574,764		—		—		—		—		—		—		20,269		1,020,576		1,040,845		—		—		—		—		—		—
Chile	Ch$		5.50	%		615		—		615		—		—		—		—		—		—		714		—		714		—		—		—		—		—		—
						575,379		—		575,379		—		—		—		—		—		—		20,983		1,020,576		1,041,559		—		—		—		—		—		—

Identification of bank borrowings by company

Taxpayer ID No. (RUT)	Company	Country		Financial Institution	Currency	Effective Interest Rate			Nominal Interest Rate			9-30-2015																		12-31-2014
												Current						Non-current												Current						Non-current
												Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non- current		Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non- current
96.800.570-7	Chilectra S.A.		Chile	Credit lines	Ch$		6.00	%		6.00	%		29		—		29		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
91.081.000-6	Endesa Chile S.A.		Chile	B.N.P. Paribas	US$		6.32	%		5.98	%		574,764		—		574,764		—		—		—		—		—		—		20,269		1,020,576		1,040,845		—		—		—		—		—		—
91.081.000-6	Endesa Chile S.A.		Chile	Banco Santander	Ch$		6.00	%		6.00	%		582		—		582		—		—		—		—		—		—		714		—		714		—		—		—		—		—		—
94.271.00-3	Enersis S.A.		Chile	Banco Santander Chile	Ch$		4.50	%		4.50	%		4		—		4		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
				Total									575,379		—		575,379		—		—		—		—		—		—		20,983		1,020,576		1,041,559		—		—		—		—		—		—

F-109

b) Secured and unsecured liabilities

Summary of secured and unsecured liabilities by currency and maturity

Country	Currency	Nominal Interest Rate			Current						Non-current												Current						Non-current
					Maturity				Total Current at 9/30/2015		Maturity										Total Non- current at 9/30/2015		Maturity				Total Current at 12/31/2014		Maturity										Total Non- current at 12/31/2014
					One to three months		Three to twelve months				One to two years		Two to three years		Three to four years		Four to five years		More than five years				One to three months		Three to twelve months				One to two years		Two to three years		Three to four years		Four to five years		More than five years
					ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$
Chile	US$		6.93	%		8,926,299		21,319,934		30,246,233		29,695,239		29,144,247		39,919,478		49,482,933		358,153,297		506,395,194		9,028,616		144,138,509		153,167,125		25,547,239		25,547,239		25,547,239		25,547,239		733,419,902		835,608,858
Chile	U.F.		5.57	%		7,251,762		21,755,288		29,007,050		29,007,049		29,007,049		29,007,049		29,007,049		821,248,858		937,277,054		8,377,677		30,005,314		38,382,991		37,771,918		37,160,846		36,549,774		46,672,611		429,466,743		587,621,892
			Total			16,178,061		43,075,222		59,253,283		58,702,288		58,151,296		68,926,527		78,489,982		1,179,402,155		1,443,672,248		17,406,293		174,143,823		191,550,116		63,319,157		62,708,085		62,097,013		72,219,850		1,162,886,645		1,423,230,750

Secured and unsecured liabilities by company

Taxpayer ID Number	Company	Country		Financial Institution	Country	Currency	Effective Interest Rate			Nominal Interest Rate			September 30, 2015																		December 31, 2014
													Current ThCh$						Non-Current ThCh$												Current ThCh$						Non-Current ThCh$
													Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non- Current		Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non- Current
91.081.000-6	Endesa Chile S.A.		Chile	Banco Santander 522 Serie- M	Chile	U.F.		4.82	%		4.75	%		4,443,178		13,329,534		17,772,712		17,772,711		17,772,711		29,098,935		39,213,382		291,944,043		395,801,782		2,474,039		7,422,118		9,896,157		9,896,157		9,896,157		9,896,157		9,896,157		195,949,534		235,534,162
91.081.000-6	Endesa Chile S.A.		Chile	Banco Santander -317 Serie-H	Chile	U.F.		7.17	%		6.20	%		4,483,121		7,990,400		12,473,521		11,922,528		11,371,536		10,820,543		10,269,551		66,209,254		110,593,412		789,495		2,368,484		3,157,979		3,157,979		3,157,979		3,157,979		3,157,979		77,747,246		90,379,162
91.081.000-6	Endesa Chile S.A.		Chile	BNY Mellon — 144—A	E.E.U.U.	US$		8.83	%		8.63	%		—		—		—		—		—		—		—		—		—		502,137		1,506,412		2,008,549		2,008,549		2,008,549		2,008,549		2,008,549		168,757,572		176,791,768
91.081.000-6	Endesa Chile S.A.		Chile	BNY Mellon — Primera Emisión S-2	E.E.U.U.	US$		7.40	%		7.33	%		905,024		2,715,073		3,620,097		3,620,097		3,620,097		3,620,097		3,620,097		89,336,140		103,816,528		2,641,806		124,978,079		127,619,885		—		—		—		—		—		—
91.081.000-6	Endesa Chile S.A.		Chile	BNY Mellon — Primera Emisión S-3	E.E.U.U.	US$		8.26	%		8.13	%		575,238		1,725,715		2,300,953		2,300,953		2,300,953		2,300,953		2,300,953		193,464,771		202,668,583		2,621,139		7,863,416		10,484,555		10,484,554		10,484,554		10,484,554		10,484,554		290,965,550		332,903,766
91.081.000-6	Endesa Chile S.A.		Chile	BNY Mellon — Unica 24296	E.E.U.U.	US$		4.32	%		4.25	%		2,936,551		8,809,652		11,746,203		11,746,202		11,746,202		11,746,202		11,746,202		321,745,270		368,730,078		2,174,007		11,394,304		13,568,311		12,957,238		12,346,166		11,735,094		11,124,022		73,777,578		121,940,098
91.081.000-6	Endesa Chile S.A.		Chile	BNY Mellon— Primera Emisión S-1	E.E.U.U.	US$		7.96	%		7.88	%		2,834,949		8,504,848		11,339,797		11,339,797		11,339,797		11,339,797		11,339,797		216,702,677		262,061,865		6,203,670		18,611,010		24,814,680		24,814,680		24,814,680		24,814,680		35,548,589		355,689,165		465,681,794
				Total										16,178,061		43,075,222		59,253,283		58,702,288		58,151,296		68,926,527		78,489,982		1,179,402,155		1,443,672,248		17,406,293		174,143,823		191,550,116		63,319,157		62,708,085		62,097,013		72,219,850		1,162,886,645		1,423,230,750

F-110

c) Financial lease obligations

Financial lease obligations by company

Taxpayer ID Number	Company	Country		Taxpayer ID Number		Financial Institution	Country		Currency	Nominal Interest Rate			September 30, 2015																		December 31, 2014
													Current ThCh$						Non-Current ThCh$												Current ThCh$						Non-Current ThCh$
													Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non- Current		Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non- Current
91.081.000-6	Endesa Chile S.A.		Chile		87.509.100-K	Abengoa Chile		Chile	US$		6.50	%		711,183		2,139,718		2,850,901		2,867,972		2,886,153		2,905,515		2,926,137		11,727,541		23,313,318		652,199		1,957,446		2,609,645		2,611,991		2,614,490		2,617,151		2,619,984		12,287,815		22,751,431
								Totals						711,183		2,139,718		2,850,901		2,867,972		2,886,153		2,905,515		2,926,137		11,727,541		23,313,318		652,199		1,957,446		2,609,645		2,611,991		2,614,490		2,617,151		2,619,984		12,287,815		22,751,431

APPENDIX 5. DETAILS OF ASSETS AND LIABILITIES IN FOREIGN CURRENCY

This appendix forms an integral part of the Enersis Chile’s financial statements.

The detail of assets and liabilities denominated in foreign currencies is the following:

ASSETS	Foreign Currency	Functional Currency	9-30-2015 ThCh$		9-30-2014 (Unaudited) ThCh$
CURRENT ASSETS
Cash and cash equivalents				13,179,011		91,039,422
	U.S. dollar	Chilean peso		6,263,512		80,722,128
	Argentine peso	U.S. dollar		6,915,499		6,110,560
	Chilean peso	U.S. dollar		—		4,206,734
Current accounts receivable from related companies				3,631,976		14,039,935
	U.S. dollar	Chilean peso		3,631,976		14,039,935
Total current assets other than assets classified as held for sale and discontinued operations				16,810,987		105,079,357
TOTAL CURRENT ASSETS				16,810,987		105,079,357
NON- CURRENT ASSETS
Investments accounted for using the equity method				33,569,137		27,794,762
	U.S. dollar	Chilean peso		33,569,137		27,794,762
TOTAL NON-CURRENT ASSETS				33,569,137		27,794,762
TOTAL ASSETS				46,222,403		132,874,119

			9-30-2015																		12-31-2014
			Current Liabilities						Non-current Liabilities												Current Liabilities						Non-current Liabilities
			90 days or less		91 days to 1 year		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non-current		90 days or less		91 days to 1 year		Total		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non-current
	Foreign Currency	Functional Currency	ThCh$		ThCh$				ThCh$		ThCh$		ThCh$		ThCh$		ThCh$				ThCh$		ThCh$		Current		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$
LIABILITIES
Other current financial liabilities	U.S. dollar			8,537,709		23,895,006		32,432,715		209,524,014		31,931,516		31,950,878		31,971,500		833,815,723		1,139,193,631		9,701,084		147,116,531		156,817,615		28,159,230		28,161,729		28,164,390		28,167,223		745,707,717		858,360,289
	U.S. dollar	Chilean peso		8,537,709		23,895,006		32,432,715		209,524,014		31,931,516		31,950,878		31,971,500		833,815,723		1,139,193,631		9,701,084		147,116,531		156,817,615		28,159,230		28,161,729		28,164,390		28,167,223		745,707,717		858,360,289
TOTAL LIABILITIES				8,537,709		23,895,006		32,432,715		209,524,014		31,931,516		31,950,878		31,971,500		833,815,723		1,139,193,631		9,701,084		147,116,531		156,817,615		28,159,230		28,161,729		28,164,390		28,167,223		745,707,717		858,360,289

F-111

APPENDIX 6. ADDITIONAL INFORMATIONOFICIO CIRCULAR (OFFICIAL BULLETIN) No. 715 OF FEBRUARY 3, 2012

This appendix forms an integral part of the Enersis Chile’s financial statements.

a ) Portfolio stratification

• Trade and other receivables by aging:

	Balance at
	9-30-2015
Trade and Other Receivables	Current portfolio ThCh$			1-30 days ThCh$			31-60 days ThCh$			61-90 days ThCh$			91-120 days ThCh$			121-150 days ThCh$			151-180 days ThCh$			181-210 days ThCh$			211-250 days ThCh$			More than 251 days ThCh$			Total Current ThCh$			Total Non- Current ThCh$
Trade receivables, gross		384,552,394			27,807,115			12,228,969			1,880,821			3,041,144			1,324,434			1,731,692			1,313,697			362,431			49,646,802			483,889,499			3,153,282
Allowance for doubtful accounts		(450,496	)		(191,679	)		(190,538	)		(98,666	)		(105,063	)		(86,706	)		(106,257	)		(410,876	)		(64,170	)		(24,595,458	)		(26,299,909	)		—
Other receivables, gross		130,983,793			—			—			—			—			—			—			—			—			—			130,983,793			3,776,656
Allowance for doubtful accounts		(8,162,822	)		—			—			—			—			—			—			—			—			—			(8,162,822	)		—
Total		506,922,869			27,615,436			12,038,431			1,782,155			2,936,081			1,237,728			1,625,435			902,821			298,261			25,051,344			580,410,561			6,929,938

	Balance at
	12-31-2014
Trade and Other Receivables	Current portfolio ThCh$			1-30 days ThCh$			31-60 days ThCh$			61-90 days ThCh$			91-120 days ThCh$			121-150 days ThCh$			151-180 days ThCh$			181-210 days ThCh$			211-250 days ThCh$			More than 251 days ThCh$			Total Current ThCh$			Total Non- Current ThCh$
Trade receivables, gross		408,553,659			24,895,938			11,368,415			3,524,410			780,369			1,529,776			724,073			1,364,913			683,993			37,128,352			490,553,898			3,318,126
Allowance for doubtful accounts		(240,504	)		(206,494	)		(284,757	)		(239,194	)		(169,479	)		(143,664	)		(96,107	)		(381,988	)		(113,699	)		(22,030,558	)		(23,906,444	)		—
Other receivables, gross		117,462,574			—			—			—			—			—			—			—			—			—			117,462,574			4,178,286
Allowance for doubtful accounts		(5,928,723	)		—			—			—			—			—			—			—			—			—			(5,928,723	)		—
Total		519,847,006			24,689,444			11,083,658			3,285,216			610,890			1,386,112			627,966			982,925			570,294			15,097,794			578,181,305			7,496,412

F-112

• By type of portfolio:

Aging of balances	Balance at												Balance at
	9-30-2015												12-31-2014
	Non-renegotiated Portfolio				Renegotiated Portfolio				Total Gross Portfolio				Non-renegotiated Portfolio				Renegotiated Portfolio				Total Gross Portfolio
	Number of customers		Gross amount ThCh$		Number of customers		Gross amount ThCh$		Number of customers		Gross amount ThCh$		Number of customers		Gross amount ThCh$		Number of customers		Gross amount ThCh$		Number of customers		Gross amount ThCh$
Current		1,312,094		381,450,931		55,738		6,254,745		1,367,832		387,705,676		1,120,913		408,973,803		44,355		2,897,982		10,337,947		411,871,785
1 to 30 days		345,763		24,337,479		22,255		3,469,636		368,018		27,807,115		394,849		22,455,423		20,378		2,440,515		2,187,327		24,895,938
31 to 60 days		91,710		10,860,335		7,545		1,368,634		99,255		12,228,969		107,014		10,431,423		6,632		936,992		438,222		11,368,415
61 to 90 days		12,792		1,507,068		1,540		373,753		14,332		1,880,821		16,019		3,237,896		1,335		286,514		111,278		3,524,410
91 to 120 days		6,603		2,832,153		824		208,991		7,427		3,041,144		6,699		617,720		672		162,649		72,724		780,369
121 to 150 days		5,054		1,156,470		492		167,964		5,546		1,324,434		5,401		1,403,115		468		126,661		66,295		1,529,776
151 to 180 days		4,153		1,334,114		293		397,578		4,446		1,731,692		4,457		650,259		272		73,814		48,729		724,073
181 to 210 days		6,445		1,256,374		163		57,323		6,608		1,313,697		5,433		1,299,677		183		65,236		39,593		1,364,913
211 to 250 days		3,246		178,185		140		184,246		3,386		362,431		3,731		644,648		158		39,345		31,399		683,993
More than 251 days		9,735		46,333,879		470		3,312,923		10,205		49,646,802		91,978		29,615,862		4,650		7,512,490		426,902		37,128,352
Total		1,797,595		471,246,988		89,460		15,795,793		1,887,055		487,042,781		1,756,494		479,329,826		79,103		14,542,198		13,760,416		493,872,024

b ) Portfolio in default and in legal collection process

	Balance at				Balance at
	9-30-2015				12-31-2014
Portfolio in Default and in Legal Collection Process	Number of Customers		Amount ThCh$		Number of Customers		Amount ThCh$
Notes receivable in default		2,013		267,573		2,039		269,934
Notes receivable in legal collection process (*)		3,923		7,093,235		3,898		6,983,415
Total		5,936		7,360,808		5,937		7,253,349

(*) Legal collections are included in the portfolio in arrears.

F-113

c ) Provisions and write-offs

	Balance at
Provisions and Write-offs	9-30-2015 ThCh$			9-30-2014 (Unaudited) ThCh$
Provision for non-renegotiated portfolio		10,291,284			1,463,785
Provision for renegotiated portfolio		(5,264,190	)		(388,298	)
Write-offs during the period		—			—
Recoveries during the period		—			—
Total		5,027,094			1,075,487

d ) Number and value of operations

	Balance at
	9-30-2015				9-30-2014 (Unaudited)
Number and Value of Operations	Total detail by type of operation Last Quarter		Total detail by type of operation Annual Accumulation		Total detail by type of operation Last Quarter		Total detail by type of operation Annual Accumulation
Impairment provisions and recoveries:
Number of operations		1,886,563		1,886,563		1,798,642		1,798,642
Value of operations, in ThCh$		5,027,094		5,027,094		830,164		1,075,487

F-114

APPENDIX 6.1. SUPPLEMENTARY INFORMATION ON TRADE RECEIVABLES

This appendix forms an integral part of the Enersis Chile’s financial statements.

a) Portfolio stratification

• Trade receivables by aging:

	Balance at
	9-30-2015
Trade and other current receivables	Current portfolio ThCh$			1-30 days ThCh$			31-60 days ThCh$			61-90 days ThCh$			91-120 days ThCh$			121-150 days ThCh$			151-180 days ThCh$			181-210 days ThCh$			211-250 days ThCh$			More than 251 days ThCh$			Total Current ThCh$			Total Non- Current ThCh$
Trade receivables, generation		233,991,291			353			2,551			2			6,642			39,764			—			181,591			5			1,305,310			235,527,509			48,635
- Large customers		233,566,869			353			2,551			2			6,642			39,764			—			181,591			5			1,305,310			235,103,087			—
- Institutional customers		—			—			—			—			—			—			—			—			—			—			—			—
- Others		424,422			—			—			—			—			—			—			—			—			—			424,422			48,635
Allowance for doubtful accounts		(55,494	)		—			—			—			—			—			—			—			—			(1,122,141	)		(1,177,635	)		—
Unbilled services		137,217,470			—			—			—			—			—			—			—			—			19,055			137,236,525			—
Services billed		96,773,821			353			2,551			2			6,642			39,764			—			181,591			5			1,286,255			98,290,984			48,635
Trade receivables, distribution		150,561,103			27,806,762			12,226,418			1,880,819			3,034,502			1,284,670			1,731,692			1,132,106			362,426			48,341,492			248,361,990			3,104,647
- Large customers		123,789,696			21,282,497			8,947,027			1,098,549			636,590			442,677			330,588			566,630			191,192			19,042,751			176,328,197			2,801,608
- Institutional customers		24,821,623			5,094,054			2,274,170			539,140			279,490			120,368			522,234			245,807			17,242			15,032,846			48,946,974			278,424
- Others		1,949,784			1,430,211			1,005,221			243,130			2,118,422			721,625			878,870			319,669			153,992			14,265,895			23,086,819			24,615
Allowance for doubtful accounts		(395,002	)		(191,679	)		(190,538	)		(98,666	)		(105,063	)		(86,706	)		(106,257	)		(410,876	)		(64,170	)		(23,473,317	)		(25,122,274	)		—
Unbilled services		101,512,439			—			—			—			—			—			—			—			—			—			101,512,439			—
Services billed		49,048,664			27,806,762			12,226,418			1,880,819			3,034,502			1,284,670			1,731,692			1,132,106			362,426			48,341,492			146,849,551			3,104,647
Total Trade Receivables, Gross		384,552,394			27,807,115			12,228,969			1,880,821			3,041,144			1,324,434			1,731,692			1,313,697			362,431			49,646,802			483,889,499			3,153,282
Total Allowance for Doubtful Accounts		(450,496	)		(191,679	)		(190,538	)		(98,666	)		(105,063	)		(86,706	)		(106,257	)		(410,876	)		(64,170	)		(24,595,458	)		(26,299,909	)		—
Total Trade Receivables, Net		384,101,898			27,615,436			12,038,431			1,782,155			2,936,081			1,237,728			1,625,435			902,821			298,261			25,051,344			457,589,590			3,153,282

F-115

Since not all of our commercial databases in our Combined Group’s different combined entities distinguish whether the final electricity service consumer is a natural or legal person, the main management segmentation used by all the combined entities to monitor and follow up on trade receivables is the following:

• Mass-market customers

• Large customers

• Institutional customers

	Balance at
	12-31-2014
Trade and other current receivables	Current portfolio ThCh$			1-30 days ThCh$			31-60 days ThCh$			61-90 days ThCh$			91-120 days ThCh$			121-150 days ThCh$			151-180 days ThCh$			181-210 days ThCh$			211-250 days ThCh$			More than 251 days ThCh$			Total Current ThCh$			Total Non- Current ThCh$
Trade receivables, generation		215,515,564			1,126,379			2,211,459			549,240			165,805			16,224			203,213			4,742			11,386			1,475,172			221,279,184			—
- Large customers		215,515,564			1,126,379			2,211,459			498,757			165,805			16,224			203,213			4,742			11,386			1,475,172			221,228,701			—
- Institutional customers		—			—			—			—			—			—			—			—			—			—			—			—
- Others		—			—			—			50,483			—			—			—			—			—			—			50,483			—
Allowance for doubtful accounts		—			—			—			—			—			—			—			—			—			(1,177,635	)		(1,177,635	)		—
Unbilled services		129,288,778			—			—			—			—			—			—			—			—			—			129,288,778			—
Services billed		86,226,786			1,126,379			2,211,459			549,240			165,805			16,224			203,213			4,742			11,386			1,475,172			91,990,406			—
Trade receivables, distribution		193,038,095			23,769,559			9,156,956			2,975,170			614,564			1,513,552			520,860			1,360,171			672,607			35,653,180			269,274,714			3,318,126
- Large customers		148,429,749			16,970,890			6,872,321			1,012,684			474,373			337,101			258,211			486,833			154,843			17,153,968			192,150,973			2,358,478
- Institutional Clients		39,530,019			6,327,489			1,561,755			1,708,259			6,617			357,959			231,579			662,941			217,543			8,790,763			59,394,924			550,439
- Others		5,078,327			471,180			722,880			254,227			133,574			818,492			31,070			210,397			300,221			9,708,449			17,728,817			409,209
Allowance for doubtful accounts		(240,504	)		(206,494	)		(284,757	)		(239,194	)		(169,479	)		(143,664	)		(96,107	)		(381,988	)		(113,699	)		(20,852,923	)		(22,728,809	)		—
Unbilled services		159,974,872			—			—			—			—			—			—			—			—			—			159,974,872			—
Services billed		33,063,222			23,769,559			9,156,956			2,975,170			614,564			1,513,552			520,860			1,360,171			672,607			35,653,180			109,299,841			3,318,126
Total Trade Receivables, Gross		408,553,659			24,895,938			11,368,415			3,524,410			780,369			1,529,776			724,073			1,364,913			683,993			37,128,352			490,553,898			3,318,126
Total Allowance for Doubtful Accounts		(240,504	)		(206,494	)		(284,757	)		(239,194	)		(169,479	)		(143,664	)		(96,107	)		(381,988	)		(113,699	)		(22,030,558	)		(23,906,444	)		—
Total Trade Receivables, Net		408,313,155			24,689,444			11,083,658			3,285,216			610,890			1,386,112			627,966			982,925			570,294			15,097,794			466,647,454			3,318,126

F-116

- By type of portfolio:

	Balance at
	9-30-2015
Type of Portfolio	Current portfolio ThCh$		1-30 days ThCh$		31-60 days ThCh$		61-90 days ThCh$		91-120 days ThCh$		121-150 days ThCh$		151-180 days ThCh$		181-210 days ThCh$		211-250 days ThCh$		More than 251 days ThCh$		Total Gross Portfolio ThCh$
GENERATION
Non-renegotiated portfolio		233,991,291		353		2,551		2		6,642		39,764		—		181,591		5		1,305,310		235,527,509
- Large customers		233,566,869		353		2,551		2		6,642		39,764		—		181,591		5		1,305,310		235,103,087
- Institutional customers		—		—		—		—		—		—		—		—		—		—		—
- Others		424,422		—		—		—		—		—		—		—		—		—		424,422
Renegotiated portfolio		—		—		—		—		—		—		—		—		—		—		—
- Large customers		—		—		—		—		—		—		—		—		—		—		—
- Institutional customers		—		—		—		—		—		—		—		—		—		—		—
- Others		—		—		—		—		—		—		—		—		—		—		—
Distribution
Non-renegotiated portfolio		146,628,735		24,337,126		10,857,784		1,507,066		2,825,511		1,116,706		1,334,114		1,074,783		178,180		45,028,569		234,888,574
-Mass-market customers		120,061,055		18,052,132		7,589,249		725,207		427,749		275,039		227,123		509,559		149,022		17,135,794		165,151,929
- Large customers		24,619,392		4,856,107		2,264,524		539,140		279,490		120,368		522,234		245,807		17,242		15,032,846		48,497,150
- Institutional customers		1,948,288		1,428,887		1,004,011		242,719		2,118,272		721,299		584,757		319,417		11,916		12,859,929		21,239,495
Renegotiated portfolio		3,932,368		3,469,636		1,368,634		373,753		208,991		167,964		397,578		57,323		184,246		3,312,923		13,473,416
-Mass-market customers		3,728,640		3,230,366		1,357,779		373,342		208,841		167,638		103,465		57,071		42,170		1,906,957		11,176,269
- Large Customers		202,231		237,947		9,645		—		—		—		—		—		—		—		449,823
- Institutional Customers		1,497		1,323		1,210		411		150		326		294,113		252		142,076		1,405,966		1,847,324
Total Gross Portfolio		384,552,394		27,807,115		12,228,969		1,880,821		3,041,144		1,324,434		1,731,692		1,313,697		362,431		49,646,802		483,889,499

F-117

	Balance at
	12-31-2014
Type of Portfolio	Current portfolio ThCh$		1-30 days ThCh$		31-60 days ThCh$		61-90 days ThCh$		91-120 days ThCh$		121-150 days ThCh$		151-180 days ThCh$		181-210 days ThCh$		211-250 days ThCh$		More than 251 days ThCh$		Total Gross Portfolio ThCh$
GENERATION
Non-renegotiated portfolio		215,515,564		1,126,379		2,211,459		549,240		165,805		16,224		203,213		4,742		11,386		1,475,172		221,279,184
- Large customers		215,515,564		1,126,379		2,211,459		498,757		165,805		16,224		203,213		4,742		11,386		1,475,172		221,228,701
- Institutional customers		—		—		—		—		—		—		—		—		—		—		—
- Others		—		—		—		50,483		—		—		—		—		—		—		50,483
Renegotiated portfolio		—		—		—		—		—		—		—		—		—		—		—
- Large customers		—		—		—		—		—		—		—		—		—		—		—
- Institutional customers		—		—		—		—		—		—		—		—		—		—		—
- Others		—		—		—		—		—		—		—		—		—		—		—
Distribution
Non-renegotiated portfolio		190,140,113		21,329,044		8,219,964		2,688,656		451,915		1,386,891		447,046		1,294,935		633,262		28,140,690		254,732,516
-Mass-market customers		146,243,855		14,632,805		5,935,329		736,267		311,815		210,642		184,854		421,774		115,498		9,683,090		178,475,929
- Large customers		39,239,436		6,240,396		1,561,755		1,698,236		6,617		357,959		231,579		662,941		217,543		8,774,211		58,990,673
- Institutional customers		4,656,822		455,843		722,880		254,153		133,483		818,290		30,613		210,220		300,221		9,683,389		17,265,914
Renegotiated portfolio		2,897,982		2,440,515		936,992		286,514		162,649		126,661		73,814		65,236		39,345		7,512,490		14,542,198
-Mass-market customers		2,185,893		2,338,085		936,992		276,417		162,558		126,459		73,357		65,059		39,345		7,470,878		13,675,043
- Large customers		290,583		87,093		—		10,023		—		—		—		—		—		16,552		404,251
- Institutional customers		421,506		15,337		—		74		91		202		457		177		—		25,060		462,904
Total Gross Portfolio		408,553,659		24,895,938		11,368,415		3,524,410		780,369		1,529,776		724,073		1,364,913		683,993		37,128,352		490,553,898

F-118

APPENDIX 6.2. ESTIMATED SALES AND PURCHASES OF ENERGY AND CAPACITY

This appendix forms an integral part of the Enersis Chile’s financial statements.

	CHILE								TOTAL
	9-30-2015				12-31-2014				9-30-2015				12-31-2014
BALANCE	Energy and Tolls		Capacity		Energy and Tolls		Capacity		Energy and Tolls		Capacity		Energy and Tolls		Capacity
Current accounts receivable from related companies		250,149		141,414		212,000		109,588		250,149		141,414		212,000		109,588
Trade and other current receivables		197,511,306		24,040,822		245,764,182		14,741,243		197,511,306		24,040,822		245,764,182		14,741,243
Total Estimated Assets		197,761,455		24,182,236		245,976,182		14,850,831		197,761,455		24,182,236		245,976,182		14,850,831
Current accounts payable to related companies		5,240,630		215,966		1,547,416		71,570		5,240,630		215,966		1,547,416		71,570
Trade and other current payables		95,143,645		45,852,222		75,929,064		26,185,456		95,143,645		45,852,222		75,929,064		26,185,456
Total Estimated Liabilities		100,384,275		46,068,188		77,476,480		26,257,026		100,384,275		46,068,188		77,476,480		26,257,026

	9-30-2015				12-31-2014				9-30-2015				12-31-2014
INCOME STATEMENT	Energy and Tolls		Capacity		Energy and Tolls		Capacity		Energy and Tolls		Capacity		Energy and Tolls		Capacity
Energy Sales		197,761,455		24,182,236		212,420,675		10,496,376		197,761,455		24,182,236		212,420,675		10,496,376
Energy Purchases		100,384,275		46,068,188		38,827,589		10,873,645		100,384,275		46,068,188		38,827,589		10,873,645

F-119

APPENDIX 7. DETAILS OF DUE DATES OF PAYMENTS TO SUPPLIERS

This appendix forms an integral part of the Enersis Chile’s financial statements.

Suppliers with Current Payments	Balance at								Balance at
	9-30-2015								12-31-2014
	Goods ThCh$		Services ThCh$		Other ThCh$		Total ThCh$		Goods ThCh$		Services ThCh$		Other ThCh$		Total ThCh$
Up to 30 days		—		103,053,544		69,410,787		172,464,331		—		80,138,994		60,130,466		140,269,460
From 31 to 60 days		—		—		—		—		—		—		—		—
From 61 to 90 days		—		—		—		—		—		—		—		—
From 91 to 120 days		—		—		—		—		—		—		—		—
From 121 to 365 days		—		—		—		—		—		—		—		—
More than 365 days		—		—		—		—		—		—		—		—
Total		—		103,053,544		69,410,787		172,464,331		—		80,138,994		60,130,466		140,269,460

Suppliers with Current Payments	Balance at								Balance at
	9-30-2015								12-31-2014
	Goods ThCh$		Services ThCh$		Other ThCh$		Total ThCh$		Goods ThCh$		Services ThCh$		Other ThCh$		Total ThCh$
Up to 30 days		—		—		—		—		—		—		—		—
From 31 to 60 days		—		—		—		—		—		—		—		—
From 61 to 90 days		—		—		—		—		—		—		—		—
From 91 to 120 days		—		—		—		—		—		—		—		—
From 121 to 180 days		—		—		—		—		—		—		—		—
More than 180 days		—		—		—		—		—		1,137,018		—		1,137,018
Total		—		—		—		—		—		1,137,018		—		1,137,018

F-120

Enersis Chile

Audited Combined Financial Statements as of December 31, 2014 and 2013 and January 1, 2013, and for the years ended December 31, 2014 and 2013 together with the Report of Independent Registered Public Accounting Firms

F-121

Index to the Audited Combined Financial Statements

Report of Independent Registered Public Accounting Firm:

Report of Ernst  & Young Servicios Profesionales de Auditoría y Asesorías Limitada (EY Ltda.) — Enersis Chile at December 31, 2014 and 2013and January 1, 2013	F-123
Combined Financial Statements:
Combined Statements of Financial Position at December 31, 2014 and 2013 and January 1, 2013	F-124
Combined Statements of Comprehensive Income for the years ended December 31, 2014 and 2013	F-126
Combined Statements of Changes in Equity for the years ended December 31, 2014 and 2013	F-128
Combined Statements of Cash Flows – Direct Method for the years ended December 31, 2014 and 2013	F-129
Notes to the Combined Financial Statements	F-130

Ch$	Chilean pesos
US$	U.S. dollars
UF	The UF is a Chilean inflation-indexed, peso-denominated monetary unit that is set daily in advance based on the previous month’s inflation rate.
ThCh$	Thousands of Chilean pesos
ThUS$	Thousands of U.S. dollars

F-122

  EY Chile Avda. Presidente Riesco 5435, piso 4, Santiago   Tel: +56 (2) 2676 1000 www.eychile.cl

Report of Independent Registered Public Accounting Firm

To Shareholders and Directors of

Enersis S.A.

We have audited the accompanying combined statements of financial position of Enersis Chile (the “Combined Group”, as described in Note 2 to the combined financial statements) as of December 31, 2014 and 2013 and January 1, 2013, and the related combined statements of comprehensive income, equity and cash flows for the each of the two years in the period ended December 31, 2014. These financial statements are the responsibility of Enersis S.A.’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Combined Group’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Combined Group’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the combined financial position of Enersis Chile at December 31, 2014 and 2013 and January 1, 2013, and the combined results of their operations and their cash flows for each of the two years in the period ended December 31, 2014, in conformity with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board.

/s/ EY Ltda

EY Ltda.

Santiago, Chile

December 4, 2015

F-123

ENERSIS CHILE

Combined Statements of Financial Position

At December 31, 2014, 2013 and January 1, 2013

(In thousands of Chilean pesos)

	Note	12-31-2014 ThCh$		12-31-2013 ThCh$		1-1-2013 ThCh$
ASSETS
CURRENT ASSETS
Cash and cash equivalents	7		132,985,927		214,907,097		94,093,760
Other current financial assets	8		1,491,129		22,263,951		3,864
Other current non-financial assets			16,047,607		4,819,090		8,544,045
Trade and other current receivables	9		578,081,205		302,980,633		302,204,856
Current accounts receivable from related companies	10		16,952,650		34,348,893		25,418,867
Inventories	11		43,677,878		22,015,024		35,822,895
Current tax assets	12		45,648,139		153,383,498		148,174,175
Total current assets other than assets or groups of assets for disposal classified as held for sale			834,884,535		754,718,186		614,262,462
Non-current assets or groups of assets for disposal classified as held for sale	13		7,978,963		—		—
Non-current assets or groups of assets for disposal classified as held for sale			7,978,963		—		—
TOTAL CURRENT ASSETS			842,863,498		754,718,186		614,262,462
NON-CURRENT ASSETS
Other non-current financial assets	8		6,750,472		2,782,608		31,575,533
Other non-current non-financial assets			235,430		366,777		380,917
Trade and other non-current receivables	9		7,496,412		6,875,034		7,548,389
Non-current accounts receivable from related companies	10		—		—		5,712,830
Investments accounted for using the equity method	14		40,365,323		214,426,176		178,220,751
Intangible assets other than goodwill	15		36,525,522		37,570,805		37,962,229
Goodwill	16		887,257,655		867,053,404		867,053,404
Property, plant and equipment	17		3,283,760,776		2,880,470,635		2,810,746,294
Investment property	18		8,514,562		44,877,049		46,922,970
Deferred tax assets	19		12,965,095		11,251,547		18,044,936
TOTAL NON-CURRENT ASSETS			4,283,871,247		4,065,674,035		4,004,168,253
TOTAL ASSETS			5,126,734,745		4,820,392,221		4,618,430,715

F-124

ENERSIS CHILE

Combined Statements of Financial Position

At December 31, 2014, 2013 and January 1, 2013

(In thousands of Chilean pesos)

	Note	12-31-2014 ThCh$			12-31-2013 ThCh$			1-1-2013 ThCh$
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Other current financial liabilities	20		146,364,359			127,263,854			220,356,909
Trade and other current payables	23		495,361,355			358,330,996			274,359,131
Current accounts payable to related companies	10		187,185,193			337,171,936			66,891,664
Other current provisions	24		11,623,514			44,639,072			38,652,787
Current tax liabilities	12		38,357,866			59,433,519			30,073,926
Other current non-financial liabilities			35,703,261			1,291,094			2,587,960
Total current liabilities other than those associated with groups of assets for disposal classified as held for sale			914,595,548			928,130,471			632,922,377
Liabilities associated with groups of assets for disposal classified as held for sale	13		5,488,147			—			—
TOTAL CURRENT LIABILITIES			920,083,695			928,130,471			632,922,377
NON-CURRENT LIABILITIES
Other non-current financial liabilities	20		778,135,167			579,403,606			656,681,229
Trade and other non-current payables	23		3,711,078			—			—
Other long-term provisions	24		27,969,935			23,983,651			25,283,772
Deferred tax liabilities	19		255,222,666			176,901,221			187,311,744
Non-current provisions for employee benefits	25		53,937,842			41,495,612			38,842,337
Other non-current non-financial liabilities			3,608,571			4,693,671			14,071,787
TOTAL NON-CURRENT LIABILITIES			1,122,585,259			826,477,761			922,190,869
TOTAL LIABILITIES			2,042,668,954			1,754,608,232			1,555,113,246
EQUITY
Allocated Capital	26.1		2,229,108,975			2,238,169,268			1,145,822,006
Retained earnings			1,171,971,677			1,080,532,977			929,854,899
Other reserves	26.5		(928,879,218	)		(879,864,877	)		382,088,337
Equity attributable to Enersis Chile			2,472,201,434			2,438,837,368			2,457,765,242
Non-controlling interests	26.6		611,864,357			626,946,621			605,552,227
TOTAL EQUITY			3,084,065,791			3,065,783,989			3,063,317,469
TOTAL LIABILITIES AND EQUITY			5,126,734,745			4,820,392,221			4,618,430,715

F-125

ENERSIS CHILE

Combined Statements of Comprehensive Income, by Nature

For the years ended December 31, 2014 and 2013

(In thousands of Chilean pesos)

COMBINED STATEMENTS OF COMPREHENSIVE INCOME Profit (loss)	Note	2014 ThCh$			2013 ThCh$
Revenues	27		2,014,863,898			1,719,566,716
Other operating income	27		34,201,387			18,516,161
Revenues and other operating income			2,049,065,285			1,738,082,877
Raw materials and consumables used	28		(1,309,402,283	)		(998,903,978	)
Contribution Margin			739,663,002			739,178,899
Other work performed by the entity and capitalized	3 a. – 3 d.1		21,505,568			14,831,058
Employee benefits expense	29		(126,341,363	)		(120,113,902	)
Depreciation and amortization expense	30		(128,437,154	)		(119,507,118	)
Impairment losses recognized in the year’s profit or loss	30		(13,185,420	)		(8,212,948	)
Other expenses by nature	31		(110,454,215	)		(114,552,727	)
Operating Income			382,750,418			391,623,262
Other gains	32		70,893,263			14,527,737
Financial income	33		14,762,515			13,650,531
Financial costs	33		(75,626,489	)		(69,768,634	)
Share of profit (loss) of associates and joint ventures accounted for using the equity method	14		(54,352,582	)		24,309,344
Foreign currency exchange differences	33		(21,444,198	)		(1,838,329	)
Profit from indexed assets and liabilities	33		15,263,623			1,593,046
Income before taxes			332,246,550			374,096,957
Income tax expense	34		(132,687,133	)		(61,712,442	)
NET INCOME			199,559,417			312,384,515
Net income attributable to:
Enersis Chile			162,459,039			229,526,660
Non-controlling interests	26.5		37,100,378			82,857,855
NET INCOME			199,559,417			312,384,515

F-126

ENERSIS CHILE

Combined Statements of Comprehensive Income, by Nature (continued)

For the years ended December 31, 2014 and 2013

(In thousands of Chilean pesos)

COMBINED STATEMENTS OF COMPREHENSIVE INCOME	Note	2014 ThCh$			2013 ThCh$
Net Income			199,559,417			312,384,515
Components of other comprehensive income that will not be reclassified subsequently to profit or loss, before taxes
Losses from defined benefit plans	25.2.b		(12,692,856	)		(3,260,244	)
Other comprehensive income that will not be reclassified subsequently to profit or loss			(12,692,856	)		(3,260,244	)
Components of other comprehensive income (loss) that will be reclassified subsequently to profit or loss, before taxes
Foreign currency translation gains			12,473,950			12,286,748
Gains (losses) from available-for-sale financial assets			1,849			(2,273	)
Share of other comprehensive income (loss) from associates and joint ventures accounted for using the equity method			13,476,871			8,699,592
Losses from cash flow hedges			(122,590,463	)		(61,087,792	)
Adjustments from reclassification of cash flow hedges, transferred to profit or loss			(8,765,418	)		(9,840,931	)
Other comprehensive income (loss) that will be reclassified subsequently to profit or loss			(105,403,211	)		(49,944,656	)
Components of other comprehensive income (loss), before taxes			(118,096,067	)		(53,204,900	)
Income tax related to components of other comprehensive income that will not be reclassified subsequently to profit or loss
Income tax related to defined benefit plans			4,527,209			652,049
Income tax related to components of other comprehensive income that will not be reclassified subsequently to profit or loss			4,527,209			652,049
Income tax related to components of other comprehensive income that will be reclassified subsequently to profit or loss
Income tax related to cash flow hedge			31,585,153			10,955,996
Income tax related to available-for-sale financial assets			(1,462	)		455
Income tax related to components of other comprehensive income that will be reclassified subsequently to profit or loss			31,583,691			10,956,451
Total Other Comprehensive Income (Loss)			(81,985,167	)		(41,596,400	)
TOTAL COMPREHENSIVE INCOME			117,574,250			270,788,115
Comprehensive income attributable to:
Enersis Chile			110,466,754			203,106,403
Non-controlling interests			7,107,496			67,681,712
TOTAL COMPREHENSIVE INCOME			117,574,250			270,788,115

F-127

ENERSIS CHILE

Combined Statements of Changes in Equity

For the years ended December 31, 2014, 2013 and January 1, 2013

(In thousands of Chilean pesos)

Statements of Changes in Equity	Allocated Capital			Changes in Other Reserves																		Retained Earnings			Equity Attributable to Enersis Chile			Non-controlling Interests			Total Equity
				Reserve for Exchange Differences in Translation			Reserve for Cash Flow Hedges			Reserve for Gains and Losses for Defined Benefit Plans			Reserve for Gains and Losses on Remeasuring Available- for-Sale Financial Assets			Other Miscellaneous Reserves			Other Reserves
Equity at beginning of period 1/1/2014		2,238,169,268			3,628,184			(6,258,379	)		—			11,811			(877,246,493	)		(879,864,877	)		1,080,532,977			2,438,837,368			626,946,621			3,065,783,989
Changes in equity
Comprehensive income
Profit (loss)																							162,459,039			162,459,039			37,100,378			199,559,417
Other comprehensive income					7,815,782			(60,592,484	)		(7,301,245	)		2,235			8,083,427			(51,992,285	)					(51,992,285	)		(29,992,882	)		(81,985,167	)
Comprehensive income																										110,466,754			7,107,496			117,574,250
Dividends																							(109,706,921	)		(109,706,921	)		(40,621,604	)		(150,328,525	)
Increase (decrease) from other changes		(9,060,293	)		—			—			7,301,245			—			(5,224,276	)		2,076,969			38,686,582			31,703,258			48,255,408			79,958,666
Increase (decrease) from changes in stakes of combined entities including loss of control (Note 2.4.1)					—												900,975			900,975			—			900,975			(29,823,564	)		(28,922,589	)
Total changes in equity		(9,060,293	)		7,815,782			(60,592,484	)		—			2,235			3,760,126			(49,014,341	)		91,438,700			33,364,066			(15,082,264	)		18,281,802
Equity at end of period 12/31/2014		2,229,108,975			11,443,966			(66,850,863	)		—			14,046			(873,486,367	)		(928,879,218	)		1,171,971,677			2,472,201,434			611,864,357			3,084,065,791
Statement of Changes in Equity				Changes in Other Reserves
	Allocated Capital			Reserve for Exchange Differences in Translation			Reserve for Cash Flow Hedges			Reserve for Gains and Losses for Defined Benefit Plans			Reserve for Gains and Losses on Remeasuring Available- for-Sale Financial Assets			Other Miscellaneous Reserves			Other Reserves			Retained Earnings			Equity Attributable to Enersis Chile			Non-controlling Interests			Total Equity
Equity at beginning of period 1/1/2013		1,145,822,006			(3,488,610	)		25,228,578			—			13,647			360,334,722			382,088,337			929,854,899			2,457,765,242			605,552,227			3,063,317,469
Changes in equity
Comprehensive income
Profit (loss)																							229,526,660			229,526,660			82,857,855			312,384,515
Other comprehensive income					7,116,794			(31,486,957	)		(2,048,258	)		(1,836	)		—			(26,420,257	)					(26,420,257	)		(15,176,143	)		(41,596,400	)
Comprehensive income																										203,106,403			67,681,712			270,788,115
Dividends																							(131,159,522	)		(131,159,522	)		(36,354,383	)		(167,513,905	)
Increase (decrease) from other changes		1,092,347,262			—			—			2,048,258			—			(1,243,494,764	)		(1,241,446,506	)		52,310,940			(96,788,304	)		(4,019,386	)		(100,807,690	)
Increase (decrease) from changes in stakes of combined entities that do not entail a loss of control					—												5,913,549			5,913,549			—			5,913,549			(5,913,549	)		—
Total changes in equity		1,092,347,262			7,116,794			(31,486,957	)		—			(1,836	)		(1,237,581,215	)		(1,261,953,214	)		150,678,078			(18,927,874	)		21,394,394			2,466,520
Equity at end of period 12/31/2013		2,238,169,268			3,628,184			(6,258,379	)		—			11,811			(877,246,493	)		(879,864,877	)		1,080,532,977			2,438,837,368			626,946,621			3,065,783,989

F-128

ENERSIS CHILE

Combined Statements of Cash Flow, Direct

For the years ended December 31, 2014 and 2013

(In thousands of Chilean pesos)

Statements of Direct Cash Flow	Note		2014 ThCh$			2013 ThCh$
Cash flow from (used in) operating activities
Types of collection from operating activities
Collections from the sale of goods and services				2,387,905,862			2,105,444,082
Collections from royalties, payments, commissions, and other income from ordinary activities				—			—
Collections from premiums and services, annual payments, and other benefits from policies held				—			73,618,168
Other collections from operating activities				15,244,642			31,272,875
Types of payment in cash from operating activities
Payments to suppliers for goods and services				(1,875,922,724	)		(1,483,888,195	)
Payments to and on behalf of employees				(118,058,522	)		(106,465,885	)
Payments on premiums and services, annual payments, and other obligations from policies held				(8,060,258	)		(5,468,607	)
Other payments for operating activities				(92,292,159	)		(81,340,651	)
Cash flows from operating activities
Income taxes paid				(33,916,694	)		(67,815,894	)
Other outflows of cash, net				(9,953,266	)		(22,395,362	)
Net cash flows from operating activities				264,946,881			442,960,531
Cash flow from (used in) investing activities
Cash flows from the loss of control of combined entities or other businesses		7.e		40,861,571			—
Cash flows used to obtain control of combined entities or other businesses		7.c		(37,654,763	)		(5,084,700	)
Other collections from the sale of equity or debt instruments belonging to other entities				—			—
Other payments to acquire equity or debt instruments belonging to other entities				(15,894,195	)		—
Other payments to acquire interests in joint ventures				(3,315,000	)		—
Loans to related companies				—			(4,844,707	)
Proceeds from the sale of property, plant and equipment				167,486			5,462,527
Purchases of property, plant and equipment				(193,980,458	)		(128,239,374	)
Purchases of intangible assets				—			—
Proceeds from the sale of other long-term assets				2,037,930			1,987,002
Purchases of other long-term assets				(2,952,035	)		—
Cash advances and loans made to other parties				—			—
Payments from future, forward, option and swap contracts				(17,364,789	)		(134,614	)
Collections from future, forward, option and swap contracts				22,536,125			1,214,705
Collections from related companies				—			4,895,411
Dividends received				12,857,184			7,134,121
Interest received				3,952,768			11,487,763
Other inflows (outflows) of cash, net				9,704			(3,192	)
Net cash flows used in investing activities				(188,738,471	)		(106,125,058	)
Cash flows from (used in) financing activities
Proceeds from share issuance				—			—
Payments for changes in ownership interest in combined entities that do not entail loss of control				—			3,192
Total proceeds from loans				221,932,163			615,868
Proceeds from long-term loans				221,932,163			—
Proceeds from short-term loans				—			615,868
Loans from related companies				475,737,765			373,106,833
Payment on borrowings				(117,659,358	)		(212,530,770	)
Payments on financial lease liabilities
Payment on loans to related companies				(633,824,523	)		(173,958,103	)
Dividends paid				(161,129,816	)		(101,334,995	)
Interest paid				(63,291,514	)		(58,595,534	)
Change in parent combined group investment				131,304,205			(37,143,350	)
Other outflows of cash, net				(12,213,403	)		(6,574,206	)
Net cash flows from (used in) financing activities				(159,144,481	)		(216,411,065	)
Net increase (decrease) in cash and cash equivalents before effect of exchange rate changes				(82,936,071	)		120,424,408
Effect of exchange rate changes on cash and cash equivalents
Effect of exchange rate changes on cash and cash equivalents				1,044,602			388,929
Net increase (decrease) in cash and cash equivalents				(81,891,469	)		120,813,337
Cash and cash equivalents at beginning of period		7		214,907,097			94,093,760
Cash and cash equivalents at end of year		7. d		133,015,629			214,907,097

F-129

ENERSIS CHILE

NOTES TO THE COMBINED FINANCIAL STATEMENTS

Contents	Page
1.      BACKGROUND		F-131
1.1    THE COMBINED GROUP’S ACTIVITIES		F-132
2.      BASIS OF PRESENTATION OF THE COMBINED FINANCIAL STATEMENTS		F-132
2.1.  Basis of presentation		F-132
2.2.  New accounting pronouncements		F-135
2.3.  Responsibility for the information, judgment and estimates provided		F-138
2.4.  Combined Entities		F-139
2.4.1 Changes in the scope of combination		F-139
2.4.2 Uncombined companies with an ownership interest of more than 50%		F-139
2.5.  Associated companies and joint arrangements		F-139
2.6.  Basis of combination and business combinations		F-140
3.      ACCOUNTING POLICIES APPLIED		F-141
a)      Property, plant, and equipment		F-141
b)      Investment property		F-143
c)      Goodwill		F-143
d)      Intangible assets other than goodwill		F-143
d.1) Research and development expenses		F-144
d.2) Other intangible assets		F-144
e)      Impairment of non-financial assets		F-144
f)      Leases		F-145
g)      Financial instruments		F-145
g.1) Financial assets other than derivatives		F-146
g.2) Cash and cash equivalents		F-146
g.3) Impairment of financial assets		F-146
g.4) Financial liabilities other than derivatives		F-147
g.5) Derivative financial instruments and hedge accounting		F-147
g.6) Derecognition of financial assets and liabilities		F-148
g.7) Offsetting financial assets and liabilities		F-149
g.8) Financial guarantee contracts		F-149
h)      Measurement of fair value		F-149
i)       Investments accounted for using the equity method		F-150
j)       Inventories		F-150
k)      Non-current assets held for sale		F-150
l)       Provisions		F-151
l.1) Provision for post-employment benefits and similar obligations		F-151
m)    Translation of balances in foreign currency		F-151
n)      Current / non-current classification		F-152
o)      Income taxes		F-152
p)      Revenue and expense recognition		F-153
q)      Dividends		F-154
r)      Share issuance costs		F-154
4.      SECTOR REGULATION AND ELECTRICITY SYSTEM OPERATIONS		F-154
4.1)  Regulated framework		F-154
4.2)  Tariff revisions		F-157
5.      BUSINESS COMBINATION – ACQUISITION OF GAS ATACAMA		F-157

F-130

Contents	Page
6.      CAPITAL INCREASE		F-159
7.      CASH AND CASH EQUIVALENTS		F-160
8.      OTHER FINANCIAL ASSETS		F-161
9.      TRADE AND OTHER RECEIVABLES		F-161
10.    BALANCES AND TRANSACTIONS WITH RELATED COMPANIES		F-163
10.1 Balances and transactions with related companies		F-163
a) Receivables from related companies		F-163
b) Accounts payable to related companies		F-164
c) Significant transactions and effects on income/expenses		F-165
10.2 Board of Directors and Key Management Personnel		F-166
10.3 Compensation plans linked to share price		F-166
11.    INVENTORIES		F-166
12.    TAX RECEIVABLES AND PAYABLES		F-167
13.    NON-CURRENT ASSETS OR GOUPS OF ASSETS FOR DISPOSAL CLASSIFIED AS HELD FOR SALE		F-167
14.    INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD		F-169
15.    INTANGIBLE ASSETS OTHER THAN GOODWILL		F-170
16.    GOODWILL		F-172
17.    PROPERTY, PLANT, AND EQUIPMENT		F-174
18.    INVESTMENT PROPERTY		F-177
19.    DEFERRED TAXES		F-178
20.    OTHER FINANCIAL LIABILITIES		F-180
21.    RISK MANAGEMENT POLICY		F-186
22.    FINANCIAL INSTRUMENTS		F-189
23.    TRADE AND OTHER CURRENT PAYABLES		F-195
24.    PROVISIONS		F-196
25.    EMPLOYMENT BENEFIT OBLIGATIONS		F-197
26.    EQUITY		F-199
27.    REVENUE AND OTHER INCOME		F-202
28.    RAW MATERIALS AND CONSUMABLES USED		F-203
29.    EMPLOYEE BENEFITS EXPENSE		F-203
30.    DEPRECIATION, AMORTIZATION, AND IMPAIRMENT LOSSES		F-203
31.    OTHER EXPENSES		F-204
32.    OTHER GAINS (LOSSES)		F-204
33.    FINANCIAL RESULTS		F-204
34.    INCOME TAXES		F-206

F-131

Contents	Page
35.    INFORMATION BY SEGMENT		F-209
36.     THIRD PARTY GUARANTEES, OTHER CONTINGENT ASSETS AND LIABILITIES, AND OTHER COMMITMENTS.		F-212
37.    SANCTIONS		F-219
38.    ENVIRONMENT		F-223
39.    FINANCIAL INFORMATION ON ENTITIES IN THE COMBINED GROUP, SUMMARIZED		F-224
40.    SUBSEQUENT EVENTS		F-224
APPENDIX 1        ENERSIS CHILE COMBINED GROUP ENTITIES		F-225
APPENDIX 2        CHANGES IN SCOPE OF COMBINATION		F-226
APPENDIX 3        ASSOCIATES COMPANIES AND JOINT VENTURE ENTITIES		F-227
APPENDIX 4        ADDITIONAL INFORMATION ON FINANCIAL DEBT		F-228
APPENDIX 5        DETAILS OF ASSETS AND LIABILITIES IN FOREIGN CURRENCY		F-234
APPENDIX 6        ADDITIONAL INFORMATION TRADE AND OTHER RECEIVABLES		F-236
APPENDIX 6.1     COMPLEMENTARY INFORMATION ON TRADE RECEIVABLES		F-240
APPENDIX 6.2     ESTIMATED SALES AND PURCHASES OF ENERGY AND CAPACITY		F-244
APPENDIX 7        DETAILS OF DUE DATES OF PAYMENTS TO SUPPLIERS		F-245

F-132

ENERSIS CHILE

COMBINED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 AND 2013

(In thousands of Chilean pesos)

1. BACKGROUND

On April 28, 2015, Enersis S.A. (“Enersis”) informed the Chilean Superintendence of Securities and Insurance (hereinafter “SVS”) through a significant event, that the Board of Directors of the company decided by unanimous vote to initiate an analysis of a corporate reorganization (“reorganization”) aimed at the separation of the activities of generation and distribution of electricity in Chile from activities outside of Chile. The objective of this would be to resolve certain duplications and redundancies that arise from Enersis’ complex corporate structure today and generate value for all its shareholders, maintaining its inclusion in the Enel S.p.A. group.

On July 27, 2015, pursuant to the provisions of Articles 9 and 10 of the Securities Market Law No. 18,045 and the provisions of General Norm No. 30 of the SVS, Enersis informed the SVS, by means of a significant event, that the Board of Directors of the company had decided unanimously that if the separation of power generation and distribution activities in Chile from the rest of the activities of the Enersis group outside of Chile were approved, the reorganization would be carried out through the following corporate transactions:

Steps to carry out the corporate reorganization:

a) Related to the preparation of the Combined Financial Statements

• Each of the direct and indirect subsidiaries of Enersis, Chilectra S.A. and Empresa Nacional de Electricidad S.A. (“Endesa S.A.”) would effect spin-offs, resulting in the formation of a new company from the spin-off by Chilectra S.A. (“Chilectra Américas”) and a new company from the spin-off by Endesa S.A. (“Endesa Américas”), which would be allocated equity interests and other assets that both Chilectra S.A. and Endesa S.A. hold outside of Chile, as well as certain other assets and liabilities related to them.

The continuing companies of Endesa and Chilectra S.A. are to be called Empresa Nacional de Electricidad S.A. (“Endesa Chile”) and Chilectra Chile S.A. (“Chilectra Chile”) after the spin-off.

• At the same time, Enersis will be spun-off and, resulting from this spin-off, will form a new company (“Enersis Chile”), which will hold the equity interests and assets of Enersis in Chile allocated to it, including equity interests in Chilectra Chile and Endesa Chile (after the spin-off of these companies described above), and certain other assets and liabilities related to them. Remaining in continuing Enersis (to be called “Enersis Américas” after the spin-off) are the equity interests and corresponding liabilities of Enersis outside Chile, as well as those held by each of the new companies “Chilectra Américas” and “Endesa Américas”, created as a result of the spin-offs of Chilectra Américas and Endesa Américas mentioned above, and the liabilities related to them.

b) Related to the subsequent processes of the division phase.

• Once the previously mentioned spin-offs are completed, “Enersis Américas” would absorb by merger “Chilectra Américas” and “Endesa Américas”, and would dissolve them without liquidation, thus grouping all international shares of the Enersis group outside Chile in “Enersis Américas”. The merger involving “Endesa Américas” and “Chilectra Américas” would take place as soon as legally possible and in accordance with the applicable regulations.

The preparation of these combined financial statements of Enersis Chile (the “Combined Group”), do not include effects that could potentially arise as a result of the previously mentioned merger.

The resulting companies would be based in Chile and their shares would be listed in the same markets that Enersis group companies are currently listed. As stated earlier, none of the transactions described above require the contribution of additional financial resources.

F-133

On November 10, 2015, in the Enersis’ Extraordinary Board of Directors’ Meeting, the majority of the Board of Directors of the company agreed to summon an Extraordinary Shareholders’ Meeting (“ESM”), on December 18, 2015. The purpose of this meeting is for the shareholders to acknowledge and rule on, among others, the proposed corporate reorganization and all supporting information related to it.

1.1 THE COMBINED GROUP’S ACTIVITIES

Enersis Chile comprises the combination of Endesa Chile S.A. and Chilectra Chile S.A. and their entities and investments in associates and joint ventures (hereinafter “the Combined Group”).

Enersis Chile will be a publicly traded corporation with registered address and head office located at Avenida Santa Rosa, No. 76, in Santiago, Chile. Enersis Chile will be registered in the securities register of the Superintendency of Securities and Insurance of Chile (Superintendencia de Valores y Seguros or SVS). In addition, Enersis Chile will be registered with the Securities and Exchange Commission of the United States of America (hereinafter U.S. SEC) and with Spain’sComisión Nacional del Mercado de Valores.

Enersis Chile’s corporate purpose consists of generating, transporting, producing, and distributing electrical energy. The Combined Group’s corporate purpose also includes investing in financial assets, developing projects, carrying out activities in the energy industry and in other fields in which electrical energy is essential, and participating in public civil or hydroelectric infrastructure concessions in which it may participate directly or through combined entities or associate companies in Chile.

Enersis Chile will be a subsidiary of Enel Iberoamérica S.R.L., a company controlled by Enel S.p.A. (hereinafter Enel).

2. BASIS OF PREPARATION OF THE COMBINED FINANCIAL STATEMENTS

2.1 Basis of Presentation

The combined financial statements as of December 31, 2014 and 2013 and January 1, 2013 of Enersis Chile have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). They were approved by the Enersis’ Board Directors at its meeting held on December 2, 2015.

As of December 31, 2014, the Enersis Chile Combined Group does not represent a group for consolidated financial statement reporting purposes in accordance with IFRS 10Consolidated Financial Statements.

These combined financial statements are the first financial statements of the Combined Group in accordance with paragraph 3 of IFRS 1First-time Adoption of International Financial Reporting Standards(“IFRS 1”). The Combined Group prepared the combined financial statements using IFRS 1.D16 (a) (“parent’s accounting method”). The accompanying combined financial statements reflect the combined operations of the Combined Group as it would have been incorporated following the spin-off, assuming date would have been January 1, 2013. The combined financial statements may not be indicative of the Combined Group’s future performance and do not necessarily reflect what the results of operations, financial position and cash flows would have been had it operated, since January 1, 2013 as an independent Combined Group during the periods presented.

The Combined Group used the same accounting policies and valuation methods for the preparation of these combined financial statements, as those used by Enersis for the preparation of its Consolidated Financial Statements, unless such accounting policies and valuation methods are not in accordance with IFRS when presenting the Combined Group as a group of companies independent of Enersis. These accounting policies have been disclosed under this note and Note 3 Accounting policies. The entities and associates are included in these combined financial statements using their respective historical carrying values and amounts as included in Enersis’ Consolidated Financial Statements.

F-134

Since IFRS does not provide any guidance for the preparation of combined financial statements, paragraph 12 of IAS 8Accounting Policies, Changes in Accounting Estimates and Errors has been used for the preparation of the combined financial statements. This paragraph requires that the latest pronouncements of other standard setters, other accounting literature and accepted industry practice should be considered. The combined financial statements of Enersis Chile have been derived from the aggregation of the net assets of the Chilean business of Enersis. All intra-group balances, revenues, expenses and unrealized gains and losses arising from transactions between companies belonging to Combined Group were eliminated when preparing the combined financial statements. In addition, the investments of Enersis in the Combined Group were eliminated against the equity of the respective combined entities. Transactions with Enersis group companies, which do not belong to the Combined Group, have been disclosed as transactions with related companies.

The Combined Financial Statements have been prepared and published in thousands of Chilean peso (ThCh$), as the Chilean peso is the functional currency of Enersis Chile. Chilean operations with functional currencies other than the Chilean peso are reported in accordance with the accounting policies stated in Note 3.k. Rounding differences may occur in respect of individual amounts or percentages.

Principles applied in preparing the Combined Financial Statements

The following summarizes the accounting and other principles applied in preparing the combined financial statements. Enersis management considers that the allocations described below have been made on a reasonable basis, but are not necessarily indicative of the costs that would have been incurred if the Combined Group had been a stand-alone entity.

Net assets of the Parent (equity)

The Combined Group has not previously formed a separate legal group nor presented any stand-alone financial statements, and accordingly it is not conceivable to present share capital or an analysis of equity reserves. The net assets of the Combined Group are represented by capital invested in the Combined Group and are shown as “Equity” using the same captions as those used by Enersis. Issued capital, share premium and retained earnings of Enersis have been allocated to Enersis Chile based on net assets book value ratio assigned to it. Other reserves (which are primarily composed of the equity effects of past reorganizations, business combinations under common control, residual effects of first-time adoption of IFRS and the equity effects of the current spin-off process) have been allocated considering the transaction and circumstances that led to creation of these reserves.

Cash and cash equivalents

Cash and cash equivalents of the foreign subsidiaries of Enersis are excluded from these Combined Financial Statements. In addition, based on the exercise carried out by Enersis management, the ratios obtained for the division of the cash and cash equivalents of Enersis on a stand-alone basis, are as follows:

	Proportion of Economic Assets
Entity	Chile			Américas
Enersis S.A.		42	%		58	%
Endesa S.A.		66	%		34	%
Chilectra S.A.		63	%		37	%

Intercompany balances and transactions with related companies

Intercompany balances with successors of Enersis were allocated by identifying the entity that provided/received the service as well as the nature of it. Intercompany balances with Enersis Chile were eliminated in full for the purpose of these combined financial statements. Intercompany balances with Enersis Americas are included in these combined financial statements and disclosed as accounts with related companies.

F-135

Debt instruments and related interest expenses, exchange differences and effects of hedge accounting strategies

Financial debt and related interest expenses and exchange rate differences of the Chilean subsidiaries of Enersis are included in these combined financial statements. Financial debt and related interest expenses and exchange rate differences of Enersis stand-alone have been 100% allocated to Enersis Americas and are not included in these combined financial statements.

In relation to derivative instruments designated as hedging instruments for the Chilean subsidiaries of Enersis have been included in these combined financial statements. Enersis’ management has adopted as a criterion to keep the strategies of hedge accounting. Therefore, all effects on the statement of financial position, income and other comprehensive income are assigned to the specific companies to which the hedged items were assigned. In the case of Enersis on a stand-alone basis, the main items covered by the hedging strategies are related to debt (hedging exposure to foreign currency debt and variability in interest rates). Therefore, the derivative financial instruments were associated with their corresponding hedged item and, as such, have been assigned accordingly to Enersis Américas, an entity that will assume 100% of the debt of Enersis stand-alone entity, or Enersis Chile, as applicable.

Personnel, salary expenses other employee benefits

For purposes of properly distributing the accounting effect of personnel from Enersis on a stand-alone basis between Enersis Chile and Enersis Américas, the Enersis’ Management defined as a criterion to identify those personnel whose main activities are related 100% with the operations based in Chile under Enersis. This group of employees was assigned to Enersis Chile. On the other hand, Management also identified those employees whose main activities relate 100% to foreign operations. This group of employees was assigned to Enersis Américas.

All remaining personnel, who divide their main activities between the Chilean operations of Enersis and foreign operations, were assigned to Enersis Chile, meaning that as of the date of the spin-off, those employees would identify and the activities offered to foreign operations of Enersis and vice-versa. This should lead to contracts of the inter-company provision of services between Enersis Chile and Enersis Américas. Accordingly, the costs of thes employees have been allocated based on the expected ratio of time devoted to activities offered to Enersis Chile companies and the total available time.

Below is a summary table presenting the breakdown of the employees to be allocated to Enersis Chile and Enersis Américas:

	Employee Allocation
Entity	Chile		Américas
Enersis S.A.		391		87
Endesa S.A.		925		7
Chilectra S.A.		668		2
Total		1,984		96

Once the allocation of personnel was determined Enersis management applied the same criteria to the division of all accounts of the statements of financial position, income and other comprehensive income that were affected by this criterion.

Dividends receivable and payable

The criterion defined by Enersis’ Management to allocate to both Enersis Chile as well as to Enersis Américas a portion of dividends receivable accounts from Enersis stand-alone as of the date of the corporate spin-off, has been based mainly on identifying the origin of each one of those dividends. If the dividends come directly from a Chilean subsidiary, these dividends have been allocated 100% to Enersis Chile.

F-136

Income tax

The tax effect (income statement and income tax provision) related to the Chilean subsidiaries of Enersis are included in these combined financial statements and was calculated using the statutory corporate tax rates according to the jurisdiction where the pre-tax income was originated.

In addition, for the tax effect in the income statement of Enersis on a stand-alone basis it has been allocated to these combined financial statements by determining a hypothetical taxable income as if Enersis Chile and Enersis Americas had operated as separate taxpayers. However, and from a tax point of view, there is currently only one taxpaying company, which is Enersis, and whose successor entity would be Enersis Americas, if the corporate reorganization is finally approved. Accordingly, income tax payable by Enersis has not been allocated to the combined financial statements.

In relation to deferred tax assets and liabilities, these have been assigned to Enersis Chile and Enersis Américas, taking into account the underlying assets and liabilities, whose respective temporary differences have originated such deferred taxes.

Other working capital accounts

Working capital items such as accounts receivable, accounts payable and inventories that are directly attributable to the Chilean operations of the Combined Group are included in the combined financial statements.

2.2 New accounting pronouncements

a) Accounting pronouncements effective from January 1, 2014:

Standards, Interpretations and Amendments	Mandatory Application for:
Amendment to IAS 32: Financial Instruments: Presentation Clarifies the requirements for offsetting financial assets and financial liabilities in order to eliminate inconsistencies from the application of the current IAS 32 offsetting criteria.	Annual periods beginning on or after January 1, 2014.
Amendments to IFRS 10 and 12, and IAS 27: Investment Entities Under IFRS 10 requirements, the reporting entities must consolidate all of the companies over which they have control. The amendment establishes an exception to these requirements, allowing the Investment Entities to measure their investments at fair value with changes in income as per IFRS 9 instead of consolidating them.	Annual periods beginning on or after January 1, 2014.
IFRIC 21: Levies This interpretation of IAS 37, “Provisions, Contingent Liabilities and Contingent Assets” outlines when an entity must recognize a government-imposed levy other than income tax as a liability in its financial statements.	Annual periods beginning on or after January 1, 2014.
Amendment to IAS 36: Impairment of Assets This amendment remove the unintended consequences of IFRS 13 on the disclosures required under IAS 36. In addition, the amendment require disclosure of the recoverable amounts for the assets or CGUs for which impairment loss has been recognized or reversed during the period.	Annual periods beginning on or after January 1, 2014.

F-137

Standards, Interpretations and Amendments	Mandatory Application for:
Amendment to IAS 39: Financial Instruments: Recognition and Measurement (Novation of derivatives) This amendment incorporates into the Standard the criteria that must be met in order not to discontinue hedge accounting in circumstances when a hedging instrument is novated.	Annual periods beginning on or after January 1, 2014.

The new interpretation and amendments adopted, which became effective on January 1, 2014, had no effect on the combined financial statements.

b) Accounting pronouncements effective from January 1, 2015 and subsequent periods:

As of the date of issue of these combined financial statements, the following accounting pronouncements had been issued by the IASB, but their application was not yet mandatory:

Standards, Interpretations and Amendments	Mandatory Application for:
IFRS 9: Financial Instruments
This is the final version of the standard issued in July 2014 and which completes the IASB project to replace IAS 39 “Financial Instruments: Recognition and Measurement.” This project was divided into 3 phases: Phase 1 – Classification and measurement of financial assets and financial liabilities. This introduces a logical focus for the classification of financial assets driven by cash flow characteristics and the business model. This new model also results in a single impairment model being applied to all financial instruments. Phase 2 – Impairment methodology. The objective is a more timely recognition of expected credit losses. The standard requires entities to account for expected credit losses from the time when financial instruments are first recognized in the financial statements. Phase 3 – Hedge accounting. This establishes a new model aimed at reflecting better alignment between hedge accounting and risk management activity. Also included are enhancements to required disclosures. This final version of IFRS 9 replaces the previous versions of the Standard.	Annual periods beginning on or after January 1, 2018.
IFRS 15: Revenue from Contracts with Customers
This new standard applies to all contracts with customers except leases, financial instruments and insurance contracts. Its purpose is to make financial information more comparable, and it provides a new model for revenue recognition and more detailed requirements for contracts with multiple obligations. It also requires more itemized information. This standard will replace IAS 11 and IAS 18 as well as their interpretations (IFRIC 13, IFRIC 15, IFRIC 18 and SIC 31).	Annual periods beginning on or after January 1, 2018.
Amendment to IAS 19: Employee Benefits The purpose of this amendment is to simplify the accounting for contributions from employees or third parties that are not determined on the basis of an employee’s years of service, such as employee contributions calculated according to a fixed percentage of salary.	Annual periods beginning on or after July 1, 2014.

F-138

Standards, Interpretations and Amendments	Mandatory Application for:
Improvements to IFRS (2010-2012 and 2011-2013 Cycles) These are a set of improvements that were necessary, but not urgent, and that amend the following standards: IFRS 2, IFRS 3, IFRS 8, IFRS 13, IAS 16, IAS 24, IAS 38 and IAS 40.	Annual periods beginning on or after July 1, 2014.
Amendment to IFRS 11: Joint Arrangements This amendment states that the accounting standards contained in IFRS 3 and other standards that are pertinent to business combinations accounting must be applied to the accounting for acquiring an interest in a joint operation in which the activities constitutes a business.	Annual periods beginning on or after January 1, 2016.
Amendment to IAS 16 and IAS 38: Clarification of Acceptable Methods of Depreciation and Amortization The amendment to IAS 16 explicitly forbids the use of revenue-based depreciation for property, plant and equipment. The amendment to IAS 38 introduces the rebuttable presumption that, for intangible assets, the revenue-based amortization method is inappropriate and establishes two limited exceptions.	Annual periods beginning on or after January 1, 2016.
Improvements to IFRS (2012-2014 Cycles) These are a set of improvements that were necessary, but not urgent, and that amend the following standards IFRS 5, IFRS7, IAS19 and IAS 34.	Annual periods beginning on or after January 1, 2016.
Amendment to IFRS 10 and IAS 28: Sale or Contribution of Assets The amendment corrects an inconsistency between IFRS 10 and IAS 28 relating to the accounting treatment of the sale or contributions of assets between an Investor and its Associate or Joint Venture.	Annual periods beginning on or after January 1, 2016.
Amendment to IAS 27: Equity Method in Separate Financial Statements This improvement allows entities to use the equity method to account for investments in subsidiaries, joint ventures and associates in their separate financial statements. The objective of the improvement is to minimize the costs associated with complying with the IFRS, particularly for those entities applying IFRS for the first time, without reducing the information available to investors.	Annual periods beginning on or after January 1, 2016.
Amendment to IAS 1: Disclosure Initiative The IASB has issued amendments to IAS 1 as part of its principal initiative to improve the presentation and disclosure of information in financial statements. These amendments are designed to assist companies in applying professional judgment to determine the disclosures that should be included in their financial statements.	Annual periods beginning on or after January 1, 2016.
Amendment to IFRS 10, IFRS 12 and IAS 28: Investment Entities, Application of the Consolidation Exception The amendments, which have a restricted scope, introduce clarifications to the requirements for the accounting of investment entities. The modifications also provide relief in some circumstances, which will reduce the costs of applying the Standards.	Annual periods beginning on or after January 1, 2016.

F-139

The Combined Group is assessing the impact of applying IFRS 9 and IFRS 15, however, it is not practicable to provide a reasonable estimate of the effects that these IFRSs will have until the Combined Group performs a detail review. In Enersis management’s opinion, the future application of the other standards and amendments is not expected to have a significant effect on the combined financial statements of the Combined Group.

2.3 Responsibility for the information, judgments and estimates provided

Management is responsible for the information contained in these combined financial statements and expressly states that all IFRS principles and standards, as issued by the IASB, have been fully implemented.

In preparing the combined financial statements, certain judgments and estimates made by Enersis management have been used to quantify some of the assets, liabilities, income, expenses and commitments recorded in the statements.

The most important areas were critical judgment is required are:

• The identification of Cash Generating Units (CGU) for impairment testing (see Note 3.e).

• The hierarchy of information used to measure assets and liabilities at fair value (see Note 3.h)

The estimates refer basically to:

• The valuations performed to determine the existence of impairment losses among tangible and intangible assets and goodwill (see Note 3.e).

• The assumptions used to calculate the actuarial liabilities and obligations to employees, such as discount rates, mortality tables, salary raises, etc. (see Notes 3.m.1 and 25).

• The useful life of property, plant and equipment, and intangible assets (see Notes 3.a and 3.d).

• The assumptions used to calculate the fair value of financial instruments (see Notes 3.g.5 and 22).

• Energy supplied to customers whose meter readings are pending.

• Certain assumptions inherent in the electricity system affecting transactions with other companies, such as production, customer billings, energy consumption, etc. that allow for estimating electricity system settlements that must occur on the corresponding final settlement dates, but that are pending as of the date of issuance of the combined financial statements and could affect the balances of assets, liabilities, income and expenses recorded in the statements (see appendix 6.2).

• The probability that uncertain or contingent liabilities will be incurred and their related amounts (see Note 3.l).

• Future disbursements for the closure of facilities and restoration of land, as well as the discount rates to be used (see Note 3.a).

• The tax results of the various combined entities of the Combined Group that will be reported to the respective tax authorities in the future, and that have served as the basis for recording different balances related to income taxes in these combined financial statements (see Note 3.o).

• The fair values of assets acquired and liabilities assumed, and any pre-existing interest in an entity acquired in a business combination.

Although these judgments and estimates have been based on the best information available on the issuance date of these combined financial statements, future events may occur that would require a change (increase or decrease) to these estimates in subsequent periods. This change would be made prospectively, recognizing the effects in the corresponding future combined financial statements.

F-140

2.4 Combined entities

Combined entities are defined as those entities controlled, either directly or indirectly, by the Combined Group. Control is achieved when the Combined Group has i) power over the combined entity; ii) is exposed, or has rights, to variable returns from its involvement with the combined entity; and iii) has the ability to use its power to affect its returns.

Enersis Chile has power over its combined entities when it holds the majority of the substantive voting rights or, when it has less than a majority of the voting rights, and those rights are sufficient to give it the practical ability to direct the relevant activities of the combined entity unilaterally.

The Combined Group reassesses whether or not it controls a combined entity if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.

Appendix 1 – Enersis Combined Entities to these combined financial statements describes the relationship of Enersis Chile with each of its combined entities.

2.4.1 Changes in the scope of combination

On December 30, 2014, Inmobiliaria Manso de Velasco Ltda, a combined entity of Enersis Chile, completed the sale of all of its direct and indirect ownership interest in the companies Construcciones y Proyectos Los Maitenes S.A. and Aguas Santiago Poniente S.A. The selling price of these shares was ThCh$57,173,142, which was received in cash on the same date (see note 32).

The sale of Maitenes S.A. and Aguas Santiago Poniente S.A. from the Enersis Chile Combined Group’s scope of combination caused a decrease in the combined statement of financial position of ThCh$54,845,853 in current assets, ThCh$12,822,077 in non-current assets, and ThCh$1,393,348 in current liabilities; there was no effect on non-current liabilities.

The Combined Group acquired 50% interest of Inversiones GasAtacama Holding Limitada on April 22, 2014 (see Note 5). The acquisition resulted in an increase in the combined statement of financial position of ThCh$198,924,289 in current assets, ThCh$221,471,415 in non-current assets, ThCh$69,989,919 in current liabilities, and ThCh$35,672,488 in non-current liabilities.

By virtue of this operation, the following companies became combined entities of the Combined Group: Inversiones GasAtacama Holding Limitada, GasAtacama S.A., GasAtacama Chile S.A., Gasoducto TalTal S.A., Progas S.A., Gasoducto Atacama Argentina S.A., Atacama Finance Co., GNL Norte S.A. and Energex Co.

2.4.2 Uncombined companies with an ownership interest of more than 50%

Although the Combined Group holds more than a 50% ownership interest in Centrales Hidroeléctricas de Aysén S.A. (Aysén), it is considered a “joint venture” since the Combined Group, through contracts or agreements with shareholders, exercises joint control of the company.

2.5 Investment in associates and joint arrangements

Associates are those entities in which the Combined Group, either directly or indirectly, exercises significant influence.

Significant influence is the power to participate in the financial and operational policy decisions of the investee but does not control or have joint control over these policies. In general, if the Combined Group holds 20% or more of the voting power of an investee, it is presumed that the Combined Group has significant influence over an investee (see Note 3.i).

F-141

Joint arrangements are those agreements in which the Combined Group exercises joint control. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the entities’ relevant activities require the unanimous consent of the parties sharing control. Joint arrangements are classified as:

• Joint ventures: an agreement whereby the parties exercising joint control have rights to the net assets of the arrangement.

• Joint operations: an agreement whereby the parties exercising joint control have rights to the assets, and obligations for the liabilities, relating to the arrangement. At the end of the reporting period, the Combined Group does not have any joint arrangements that qualify as joint operations.

Appendix 3 – “Associated Companies and Joint Ventures” to these combined financial statements describes the relationship of Enersis Chile with each of these companies.

2.6 Business combinations

The combined entities are combined and all their assets, liabilities, revenues, expenses, and cash flows are included in the combined financial statements once the adjustments and eliminations from intercompany transactions have been made.

The comprehensive income of combined entities is included in the combined statement of comprehensive income from the date when the Combined Group obtains control of the combined entity and until the date on which it loses control of the combined entity.

The operations of the Combined Group entities have been combined under the following principles:

1. At the date Enersis Chile obtains control, the combined entity’s assets acquired and its liabilities assumed are recorded at fair value, except for certain assets and liabilities that are recorded using valuation principles established in other IFRS standards. If the fair value of the consideration transferred plus the fair value of any non-controlling interest exceeds the fair value of the net assets acquired, this difference is recorded as goodwill. In the case of a bargain purchase, the resulting gain is recognized in profit or loss for the period after reassessing whether all of the assets acquired and the liabilities assumed have been properly identified and following a review of the procedures used to measure the fair value of these amounts.

For each business combination, the Combined Group chooses whether to measure the non-controlling interests in an acquired company at fair value or at the proportional share of the net identifiable assets acquired.

If the fair value of assets acquired and liabilities assumed at the acquisition date it has not been completed, the Combined Group reports the provisional values recorded. During the measurement period, which shall not exceed one year from the acquisition date, the provisional values recognized will be adjusted retrospectively and additional assets or liabilities will be recognized to reflect new information obtained on events and circumstances that existed on the acquisition date, but which were unknown to management at that time.

For business combinations achieved in stages, the fair value of the equity interest previously held in the acquired company is measured on the date of acquisition and any profit or loss is recognized in the results for that fiscal year.

2. Non-controlling interests in equity and in the comprehensive income of the combined entities are presented, respectively, under the line items “Total Equity: Non-controlling interests” in the combined statement of financial position and “Net Income attributable to non-controlling interests” and “Comprehensive income attributable to non-controlling interests” in the combined statement of comprehensive income.

F-142

3. The financial statements of combined entities with functional currencies other than the Chilean peso are translated as follows:

a. For assets and liabilities, the prevailing exchange rate on the closing date of the financial statements is used.

b. For items in the comprehensive income statement, the average exchange rate for the period is used (unless this average is not a reasonable approximation of the cumulative effect of the exchange rates in effect on the dates of the transactions, in which case the exchange rate in effect on the date of each transaction is used).

c. Equity remains at the historical exchange rate from the date of acquisition or contribution, and retained earnings at the average exchange rate at the date of origination.

d. Exchange differences arising in translation of financial statements are recognized in the item “Foreign currency translation gains (losses)” in other comprehensive income (see Note 26.2).

4. Balances and transactions between combined entities were fully eliminated in the combination process.

5. Changes in interests in combined entities that do not result in taking or losing control are recorded as equity transactions, and the book value of the controlling and non-controlling interests is adjusted to reflect the change in relative interest in the combined entity. Any difference that may exist, between the value for which a non-controlling interest is adjusted and the fair value of a compensation paid or received, is recognized directly in Equity attributable to Enersis Chile.

6. Business combinations under common control are recorded using, as a reference, the ‘pooling of interest’ method. Under this method, the assets and liabilities involved in the transaction remain reflected at the same book value at which they were recorded in the ultimate controlling entity, although subsequent accounting adjustments may need to be made to align the accounting policies of the companies involved.

Any difference between the assets and liabilities contributed to the combination and the compensation given is recorded directly in Net equity as a debit or credit to other reserves. The Combined Group does not apply retrospective accounting records of business combinations under common control.

3. ACCOUNTING POLICIES APPLIED

The main accounting policies used in preparing the accompanying combined financial statements are the following:

a) Property, plant and equipment

Property, plant and equipment are measured at acquisition cost, net of accumulated depreciation and any impairment losses they may have experienced. In addition to the price paid to acquire each item, the cost also includes, where applicable, the following concepts:

• Financing expenses accrued during the construction period that are directly attributable to the acquisition, construction, or production of qualified assets, which require a substantial period of time before being ready for use such as, for example, electricity generation or distribution facilities. The Combined Group defines “substantial period” as one that exceeds twelve months. The interest rate used is that of the specific financing or, if none exists, the weighted average financing rate of the company carrying out the investment. The weighted average financing rate was 8.8% as of December 31, 2014 and December 31, 2013. The finance expenses capitalized were ThCh$1,817,283 and ThCh$998,984 during the years ended December 31, 2014 and 2013, respectively (see Note 33).

• Employee expenses directly related to construction in progress. The amounts capitalized under this concept for the years ended December 31, 2014 and 2013 were ThCh$21,505,568 and ThCh$14,831,058, respectively.

F-143

• Future disbursements that the Combined Group will have to incur to close its facilities are added to the cost of the asset at fair value, recognizing the corresponding provision for dismantling or restoration. The Combined Group reviews its estimates on an annual basis, increasing or decreasing the value of the asset and the liability based on the results of this estimate (see Note 24).

Items for construction work in progress are transferred to operating assets once the testing period has been completed and they are available for use, at which time depreciation begins.

Expansion, modernization or improvement costs that represent an increase in productivity, capacity or efficiency, or a longer useful life are capitalized as increasing the cost of the corresponding assets.

The replacement or overhaul of entire components that increase the asset’s useful life or economic capacity are recorded as an increase in cost for the respective assets, derecognizing the replaced or overhauled components.

Expenditures for periodic maintenance, conservation and repair are recognized directly as an expense for the year in which they are incurred.

The Combined Group, based on the outcome of impairment testing performed as explained in Note 3.e), considers that the carrying amount of assets does not exceed their recoverable amount.

Property, plant and equipment, net of its residual value, is depreciated by distributing the cost of the different items that comprise it on a straight-line basis over its estimated useful life, which is the period during which the Combined Group expects to use the assets. Useful life estimates and residual values are reviewed on an annual basis and if appropriate adjusted prospectively.

The following table sets forth the main categories of property, plant and equipment with their respective estimated useful lives:

Categories of Property, plant and equipment	Years of estimated useful lives
Buildings	22 – 100
Plant and equipment	3 – 85
IT equipment	3 – 15
Fixtures and fittings	5 – 21
Motor vehicles	5 – 10
Other	2 – 33

Additionally, the following table sets forth more details on the useful lives of plant and equipment items:

	Years of Estimated useful lives
Generating facilities:
Hydroelectric plants
Civil engineering works	35 – 65
Electromechanical equipment	10 – 85
Fuel oil/coal-fired power plants	25 – 40
Combined cycle plants	10 – 35
Renewable energy power plants	35
Transmission and distribution facilities:
High-voltage network	10 – 80
Low- and medium-voltage network	7 – 62
Measuring and remote control equipment	3 – 76
Other facilities	4 – 25
Natural gas transport facilities
Pipelines	35

Land is not depreciated since it has an indefinite useful life.

F-144

Gains or losses that arise from the sale or disposal of items of Property, plant and equipment are recognized as “Other gains (losses)” in the comprehensive income statement and are calculated by deducting the net book value of the asset and any sales expenses from the amount received in the sale.

b) Investment property

Investment property includes land and buildings held for the purpose of earning rentals and/or for capital appreciation.

Investment property is measured at acquisition cost less any accumulated depreciation and impairment losses that have been incurred. Investment property, excluding land, is depreciated on a straight-line basis over the estimated useful lives of the related assets.

An investment property is derecognized upon disposal or when no future economic benefits are expected from its use or disposal.

Gains or losses on derecognition of the investment property is calculated as the difference between the net disposal proceeds and the carrying amount of the asset.

The breakdown of the fair value of investment property is detailed in Note 18.

c) Goodwill

Goodwill arising from business combinations represents the excess of the consideration paid plus the amount of any non-controlling interests over the Combined Group’s share of the net value of the assets acquired and liabilities assumed, measured at fair value at the acquisition date. If the accounting for a business combination is completed, as well as the determination of goodwill, after the end of the reporting period in which the combination occurs, the amounts previously reported presented are adjusted, for comparative purposes to include the value of the assets acquired and liabilities assumed and the value of the final goodwill as of acquisition date.

Goodwill arising from acquisition of entities with functional currencies other than the Chilean peso is measured in the functional currency of the acquired company and translated to Chilean pesos using the closing exchange rate.

Goodwill is not amortized; instead, at the end of each reporting period or when there are indicators, the Combined Group estimates whether any impairment loss has reduced its recoverable amount to an amount less than the carrying amount and, if so, it is immediately adjusted for impairment (see Note 3.e).

d) Intangible assets other than goodwill

Intangible assets are initially recognized at their acquisition cost or production cost, and are subsequently measured at their cost, net of their accumulated amortization and impairment losses they may have experienced.

Intangible assets are amortized on a straight line basis during their useful lives, starting from the date when they are ready for use, except for those with an indefinite useful life, which are not amortized. As of December 31, 2014 and 2013 and January 1, 2013, there are no significant intangible assets with an indefinite useful life.

The criteria for recognizing these assets’ impairment losses and, if applicable, recovery of impairment losses recorded in previous fiscal years are explained in Note 3.e below.

An intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal.

F-145

Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset are recognized in profit or loss when the asset is derecognized.

d.1) Research and development expenses

The Combined Group recognizes the costs incurred in a project’s development phase as intangible assets in the statement of financial position as long as the project’s technical feasibility and future economic benefits have been demonstrated.

d.2) Other intangible assets

Other intangible assets correspond primarily to computer software, water rights, and easements. They are initially recognized at acquisition or production cost and are subsequently measured at cost less accumulated amortization and impairment losses, if any.

Computer software is amortized (on average) over five years. Certain easements and water rights have indefinite useful lives and, therefore, are not amortized, while others have useful lives ranging from 40 to 60 years, depending on their characteristics, and they are amortized over that term.

e) Impairment of non-financial assets

During the year, and principally at the end of each reporting period, the Combined Group evaluates whether there is any indication that an asset has been impaired. If any such indication exist, the Combined Group estimates the recoverable amount of that asset to determine the amount of the impairment loss. In the case of identifiable assets that do not generate cash flows independently, the Combined Group estimates the recoverable amount of the Cash Generating Unit (CGU) to which the asset belongs, which is understood to be the smallest identifiable group of assets that generates independent cash inflows.

Notwithstanding the preceding paragraph, in the case of CGUs to which goodwill or intangible assets with an indefinite useful lives have been allocated, a recoverability analysis is performed routinely at each period end.

Recoverable amount is the higher of fair value less costs of disposal and value in use, which is defined as the present value of the estimated future cash flows. In order to calculate the recoverable amount of Property, plant, and equipment, as well as of goodwill, and intangible assets, the Combined Group uses value in use criteria in practically all cases.

To estimate value in use, the Combined Group prepares future pre-tax cash flow projections based on the most recent budgets available. These budgets incorporate management’s best estimates of a CGUs’ revenue and costs using sector projections, past experience and future expectations.

In general, these projections cover the next five years, estimating cash flows for subsequent years by applying reasonable growth rates which, in no case, are increasing rates nor exceed the average long-term growth rates for the particular sector and country in which the Combined Group operates. At the end of 2014, 2013 and 2012, future cash flows projections were extrapolated from the following rates:

Growth rates (g)
2014	2013	2012
2.2% – 5.0%	2.2% – 5.3%	2.3% – 5.2%

Future cash flows are discounted to calculate their present value at a pre-tax rate that covers the cost of capital for the business activity and the geographic area in which it is being carried out. The time value of money and risk premiums generally used among analysts for the business activity and the geographic zone are taken into account to calculate the pre-tax rate.

F-146

The following sets forth the pre-tax discount rates applied in 2014, 2013 and 2012 expressed in nominal terms:

2014		2013		2012
Minimum	Maximum	Minimum	Maximum	Minimum	Maximum
7.9%	13.0%	7.8%	16.3%	8.0%	14.6%

If the recoverable amount of the CGU is less than the net carrying amount of the asset, the corresponding impairment loss is recognized for the difference, and charged to “Reversal of impairment loss (impairment loss) recognized in profit or loss” in the combined statement of comprehensive income. The impairment is first allocated to the CGU’s goodwill carrying amount, if any, and then to the other assets comprising it, prorated on the basis of the carrying amount of each one, limited to its fair value less costs of disposal, or its value in use; a negative amount may not be obtained.

Impairment losses recognized for an asset in prior periods are reversed when there are indications that the impairment loss no longer exists or may have decreased, thus increasing the asset’s carrying amount with a credit to earnings, limited to the asset’s carrying amount if no impairment had occurred. In the case of goodwill, impairment losses are not reversed.

f) Leases

In order to determine whether an arrangement is, or contains, a lease, the Combined Group assesses the economic substance of the agreement, in order to determine whether fulfillment of the arrangement depends on the use of a specific asset and whether the agreement conveys the right to use an asset. If both conditions are met, at the inception of the arrangement the Combined Group separates the payments and other considerations relating to the lease, at their fair values, from those corresponding to other components of the agreement.

Leases that substantially transfer all the risks and rewards of ownership to the Combined Group are classified as finance leases. All others leases are classified as operating leases.

Finance leases in which the Combined Group acts as a lessee are recognized at the inception of the arrangement. At that time, the Combined Group records an asset based on the nature of the lease and a liability for the same amount, equal to the fair value of the leased asset or the present value of the minimum lease payments, if the latter is lower. Subsequently, the minimum lease payments are apportioned between finance expenses and reduction of the lease obligation. Finance expenses are recognized immediately in the income statement and allocated over the lease term, so as to achieve a constant interest rate on the remaining balance of the liability. Leased assets are depreciated on the same terms as other similar depreciable assets, as long as there is reasonable certainty that the lessee will acquire ownership of the asset at the end of the lease. If no such certainty exists, the leased assets are depreciated over the shorter of the useful lives of the assets and their lease term.

In the case of operating leases, payments are recognized as an expense in the case of the lessee and as income in the case of the lessor, both on a straight-line basis, over the term of the lease unless another type of systematic basis of distribution is deemed more representative.

g) Financial instruments

Financial instruments are contracts that give rise to both a financial asset in one entity and a financial liability or equity instrument in another entity.

F-147

g.1) Financial assets other than derivatives

The Combined Group classifies its financial assets other than derivatives, whether permanent or temporary, except for investments accounted for using equity method (See Note 14) and those held for sale, into four categories:

• Loans and account receivables: Trade and other receivables and accounts receivable from related companies are recognized at amortized cost, which is the initial fair value less principal repayments made, plus accrued and uncollected interest, calculated using the effective interest method.

The effective interest method is used to calculate the amortized cost of a financial asset or liability (or group of financial assets or financial liabilities) and of allocating finance income or cost over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash flows to be received or paid over the expected life of the financial instrument (or, when appropriate, over a shorter period) to the net carrying amount of the financial asset or financial liability.

• Held-to-maturity investments: Investments that the Combined Group intends to hold and is capable of holding until their maturity are accounted for at amortized cost as defined in the preceding paragraph.

• Financial assets at fair value through profit or loss: This includes the trading portfolio and those financial assets that have been designated as such upon initial recognition and that are managed and evaluated on a fair value basis. They are measured in the combined statement of financial position at fair value, with changes in value recognized directly in profit or loss when they occur.

• Available-for-sale financial assets: These are financial assets specifically designated as available-for-sale or are not classify within any of the three preceding categories.

These investments are recognized in the combined statement of financial position at fair value when it can be reliably determined. For investments in equity instruments in unlisted companies or companies with lower levels of liquidity, normally the fair value cannot be reliably measured. When this occurs, those investments in equity instruments are measured at cost less impairment losses, if any.

Changes in fair value, net of taxes, are recognized in other comprehensive income, until the investments are disposed of, at which time the amount accumulated in other comprehensive income is reclassified to profit or loss.

If the fair value is lower than cost, and if there is objective evidence that the asset has been more than temporarily impaired, the difference is recognized directly in profit or loss.

Purchases and sales of financial assets are accounted for using their trade date.

g.2) Cash and cash equivalents

This item within the interim combined statement of financial position includes cash and bank balances, time deposits, and other highly liquid investments (with a maturity of 90 days or less from the time of investment) that are readily convertible to cash and are subject to insignificant risk of changes in value.

g.3) Impairment of financial assets

The following criteria are used to determine if a financial assets has been impaired:

• For trade receivables in the electricity generation and distribution segments, the Combined Group’s policy is to recognized impairment losses when there is objective evidence that the balance will not be recoverable. In general terms, the Combined Group’s entities has a defined policy to recognize an allowance for impairment losses based on the aging of past-due balances, except in those cases where a specific collective basis analysis is recommended, such as in the case of receivables from government-owned companies (see Note 9).

F-148

• In the case of receivables of a financial nature, that are included in the “Loan and receivables” and “Investment held-to-maturity”, impairment is determined on case-by-case basis and is measured as the difference between the carrying amount and the present value of the future estimated cash flows discounted at the original effective interest rate (see Notes 8 and 22).

• For financial investments available-for-sale, the criteria for impairment applied are described in Note 3.g.1

g.4) Financial liabilities other than derivatives

Financial liabilities are recognized based on cash received, net of any costs incurred in the transaction. In subsequent periods, these obligations are measured at their amortized cost using the effective interest rate method (see Note 3.g.1).

In the particular case that a liability is the hedged item in a fair value hedge, as an exception, such liability is measured at its fair value for the portion of the hedged risk.

In order to calculate the fair value of debt, both when it is recorded in the statement of financial position and for fair value disclosure purposes as shown in Note 22, debt has been divided into fixed interest rate debt (hereinafter “fixed-rate debt”) and variable interest rate debt (hereinafter “floating-rate debt”). Fixed-rate debt is that on which fixed-interest coupons established at the beginning of the transaction are paid explicitly or implicitly over its term. Floating-rate debt is that issued at a variable interest rate, i.e., each coupon is established at the beginning of each period based on the reference interest rate. All debt has been measured by discounting expected future cash flows with a market interest rate curve based on the payment currency.

g.5) Derivative financial instruments and hedge accounting

Derivatives held by the Combined Group are transactions entered into to hedge interest and/or exchange rate risk, intended to eliminate or significantly reduce these risks in the underlying transactions being hedged.

Derivatives are recorded at fair value at the end of each reporting period as follows: if their fair value is positive, they are recorded within “Other financial assets”; and if their fair value is negative, they are recorded within “Other financial liabilities.” For derivatives on commodities, the positive fair value is recorded in “Trade and other receivables,” and negative fair values are recorded in “Trade and other liabilities.”

Changes in fair value are recorded directly in profit or loss, except when the derivative has been designated for hedge accounting purposes as a hedge instrument (in a cash flow hedge) and all of the conditions for applying hedge accounting are met, including that the hedge be highly effective. In this case, changes are recorded as follows:

• Fair value hedges: The underlying portion for which the risk is being hedged (hedged risk) and the hedge instrument are measured at fair value, and any changes in value of both items are recognized in the combined statement of comprehensive income by offsetting the effects in the same comprehensive income statement account.

• Cash flow hedges: Changes in fair value of the effective portion of the hedged item and hedge instrument are recorded in other comprehensive income an accumulated in an equity reserve known as “Reserve for cash flow hedges.” The cumulative gain or loss in in this reserve is reclassified to the combined statement of comprehensive income to the extent that the hedged item impacts the combined statement of comprehensive income offsetting the effect in the same comprehensive income statement account. Gains or losses from the ineffective portion of the hedging relationship are recorded directly in the combined statement of comprehensive income.

A hedge relationship is considered highly effective when changes in fair value or in cash flows of the underlying item directly attributable to the hedged risk are offset by changes in fair value or cash flows of the hedging instrument, with an effectiveness ranging from 80% to 125%.

F-149

As a general rule, long-term commodity purchase or sale agreements are recorded in the combined statement of financial position at their fair value at the end of each reporting period, recognizing any differences in value directly in profit or loss, except for, when all of the following conditions are met:

• The sole purpose of the agreement is for the Combined Group’s own use, which is understood as: (i) in the case of fuel purchase agreements its used to generate electricity; (ii) in the case of electrical energy purchased for sale, its sale to the end-customers; and, (i) in the case of electricity sales its sale to the end-customers.

• The Combined Group’s future projections evidence the existence of these agreements for its own use.

• Past experience with agreements evidence that they have been utilized for the Combined Group’s own use, except in certain isolated cases when for exceptional reasons or reasons associated with logistical issues have been used beyond the control and projection of the Combined Group.

• The agreement does not stipulate settlement by differences and the parties have not made it a practice to settle similar contracts with differences in the past.

The long-term commodity purchase or sale agreements maintained by the Combined Group, which are mainly for electricity, fuel, and other supplies, meet the conditions described above. Thus, the purpose of fuel purchase agreements is to use them to generate electricity, electricity purchase contracts are used to sell to end-customers, and electricity sale contracts are used to sell the Combined Group’s own products.

The Combined Group also evaluates the existence of derivatives embedded in contracts or financial instruments to determine if their characteristics and risk are closely related to the principal contract, provided that when taken as a whole they are not being accounted for at fair value. If they are not closely related, they are recorded separately and changes in value are accounted for directly in the comprehensive income statement.

The fair value of financial derivatives is determined using the following procedures:

• For derivatives quoted in an organized market, its quoted price at the end of each reporting period.

• For derivatives non-quoted in an organized market, the Combined Group measures derivatives not traded on active markets by using the discounted cash flow method and generally accepted options valuation models, based on current and future market conditions as of year-end. It also adjusts the value according to its own credit risk (Debt Valuation Adjustment, DVA), and the counterparty risk (Credit Valuation Adjustment, CVA). These CVA and DVA adjustments are measured on the basis of the potential future exposure of the instrument (creditor or borrower position) and the risk profile of both the counterparties and the Combined Group itself.

g.6) Derecognition of financial assets and liabilities

Financial assets are derecognized when:

• The contractual rights to receive cash flows from the financial asset expire or have been transferred or, if the contractual rights are retained, the Combined Group has assumed a contractual obligation to pay these cash flows to one or more recipients.

• The Combined Group has substantially transferred all the risks and rewards of ownership of the financial asset, or, if it has neither transferred nor retained substantially all the risks and rewards, when it does not retain control of the financial asset.

Transactions in which the Combined Group retains substantially all the inherent risks and rewards of ownership of the transferred asset, it continues recognizing the transferred asset in its entirety and recognizes a financial liability for the consideration received. Transactions costs are recognized in profit and loss by using the effective interest method (see Note 3.g.1).

Financial liabilities are derecognized when they are extinguished, that is, when the obligation arising from the liability has been paid or cancelled, or has expired.

F-150

g.7) Offsetting financial assets and liabilities.

The Combined Group offsets financial assets and liabilities and the net amount is presented in the statement of financial position when, and only when:

• There is a legally enforceable right to set off the recognized amounts; and

• There is an intention to settle on a net basis, or to realize the asset and settle the liability simultaneously.

g.8) Financial guarantee contracts

Financial guarantee contracts, such as guarantees given by the Combined Group to third parties, are initially recognized at fair value, adjusting the transaction costs that are directly attributable to the issuance of the guarantee.

Subsequently to initial recognition, financial guarantee contracts are measured at the higher of:

• the amount determined under accounting policy describe in Note 3.l; and

• the amount initially recognized less, if appropriate, any accumulated amortization.

h) Fair value measurement

The fair value of an asset or liability is defined as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Fair value measurement assumes that the transaction to sell an asset or transfer a liability occurs in the principal market, namely, the market with the greatest volume and level of activity for that asset or liability. In the absence of a principal market, it is assumed that the transaction is carried out in the most advantageous market available to the entity, namely, the market that maximizes the amount that would be received to sell the asset or minimizes the amount that would be paid to transfer the liability.

In estimating fair value, the Combined Group uses valuation techniques that are appropriate for the circumstances and for which there are sufficient data to conduct the measurement. The Combined Group maximizes the use of relevant observable data and minimizes the use of unobservable data.

Considering the hierarchy of the data used in these valuation techniques, the assets and liabilities measured at fair value can be classified into the following levels:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly (i.e. as prices) or indirectly (i.e. derived from prices). The methods and assumptions used to determine the fair values at Level 2 by type of financial asset or financial liability take into consideration estimated future cash flows discounted at zero coupon interest rate curves for each currency. All the valuations described are carried out using external tools, such as “Bloomberg”.

Level 3: Inputs for assets or liabilities that are not based on observable market data (unobservable inputs).

The Combined Group takes into account the characteristics of the asset or liability when measuring fair value, in particular:

• For non-financial assets, fair value measurement takes into account the ability of a market participant to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use;

• For liabilities and equity instruments, the fair value measurement assumes that the liability would not be settled and an equity instrument would not be cancelled or otherwise extinguished on the

F-151

measurement date. The fair value of the liability reflects the effect of non-performance risk, namely, the risk that an entity will not fulfill the obligation, which includes, but is not limited to, the Combined Group’s own credit risk;

• In the case of financial assets and financial liabilities with offsetting positions in market risks or counterparty credit risks, it is permitted to measure the fair value on a net basis. However, this must be consistent with the manner in which market participants would price the net risk exposure at the measurement date.

i) Investments accounted for using the equity method

The Combined Group’s interests in joint ventures and associates are recognized using the equity method.

Under the equity method, an investment in an associate or joint venture is initially recognized at cost. As of the acquisition date, the investment is recognized in the statement of financial position based on the share of its equity that the Combined Group’s interest represents in its capital, adjusted for, if appropriate, the effect of transactions with Combined Group’s entities, plus any goodwill generated in acquiring the entity. If the resulting amount is negative, zero is recorded for that investment in the statement of financial position, unless the Combined Group has a present obligation (either legal or constructive) to support the investee’s negative equity situation, in which case a provision is recognized.

Goodwill from associates or joint ventures is included in the carrying amount of the investment. It is not amortized but is subject to impairment testing as part of the overall investment carrying amount when impairment indicators exist.

Dividends received from these investments are deducted from the carrying amount of the investment, and any profit or loss obtained from them to which the Combined Group is entitled based on its ownership interest is recognized under “Share of profit (loss) of associates accounted for using equity method.”

Appendix No. 3, “Enersis Chile Combined Group Associated Companies and Joint Ventures,” to these combined financial statements, provides information about the relationship of Enersis with each of these entities.

j) Inventories

Inventories are measured at their weighted average acquisition cost or the net realizable value, whichever is lower.

k) Non-current assets held for sale

The Combined Group classifies property, plant and equipment; intangible assets; investments accounted for using the equity method, joint ventures, and disposal groups (a group of assets to be disposed of and the liabilities directly associated with those assets) as non-current assets held for sale, if, as of the date of the combined financial statements, the Combined Group has taken active measures for their sale and estimates that such a sale is highly probable.

Non-current assets held-for-sale or disposal groups are measured at the lower of their carrying amount and fair value less costs of disposal. Depreciation and amortization on these assets cease when they meet the criteria to be classified as non-current assets held for sale.

Assets that are no longer classified as held for sale, or are no longer part of a disposal group, are measured at the lower of their carrying amounts before being classified as held for sale less any depreciations, amortizations or revaluations that would have been recognized if they had not been classified as held for sale and their recoverable amount at the date of subsequent decision where would be reclassified as non-current assets.

Non-current assets held for sale and the components of the disposal groups classified as held for sale are presented in the combined statement of financial position as a single line item within assets called “Non-

F-152

current assets or disposal groups classified as held for sale,” and the respective liabilities are presented as a single line item within liabilities called “Liabilities included in disposal groups classified as held for sale.”

The Combined Group classifies as discontinued operations those separate major lines of business that have been sold or disposed of, or are classified as held for sale, including other assets that are part of the same coordinated sales or disposal plan. Similarly, entities that have been acquired exclusively with a view to resale are also considered discontinued operations.

The components of profit or loss after taxes from discontinued operations are presented as a single line item in the combined comprehensive income statement as “Net income from discontinued operations”.

l) Provisions

Provisions are recognized when the Combined Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Combined Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

Provisions are measured using the best information available as of the date of issuance of the combined financial statements considering the consequences of the event causing the provision and are re-estimated at the end of each subsequent reporting period.

l.1) Provisions for post-employment benefits and similar obligations

Some of the combined entities have pension and similar obligations with their employees. These obligations, which can be defined benefits and defined contributions, are basically formalized through pension plans, except for certain non-monetary benefits, mainly electricity supply commitments, which, due to their nature, have not been externalized and are covered by the related in-house provisions.

For defined benefit plans, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at the end of each reporting period. Past service costs relating to changes in benefits are recognized immediately.

The defined benefit plan obligations in the statement of financial position represent the present value of the accrued obligations, adjusted, once the fair value of the different plans’ assets has been deducted, if any.

For each of the defined benefit plans, any deficit between the actuarial liability and the plan assets (if any) is recognized under line item “Provisions for employee benefits” within current and non-current liabilities in the combined statement of financial position.

Actuarial gains and losses arising in remeasurement of both the plan liabilities and the plan assets (if any, and excluding interest) are recognized directly in other comprehensive income.

Contributions to defined contribution benefit plans are recognized as an expense in the combined statement of comprehensive income when the employees have rendered their services.

m) Translation of balances in foreign currency

Transactions carried out by each entity in a currency other than its functional currency are recognized using the exchange rates prevailing as of the date of the transactions. During the year, any differences that arise between the prevailing exchange rate at the date of the transaction and the exchange rate as of the date of collection or payment are recognized as “Foreign currency exchange differences” in the combined statement of comprehensive income.

F-153

Likewise, at the end of each reporting period, receivable or payable balances denominated in a currency other than each entity’s functional currency are translated using the closing exchange rate. Any differences are recorded as “Foreign currency exchange differences” in the combined statement of comprehensive income.

The Combined Group has established a policy to hedge the portion of revenue from its combined entities that is directly linked to variations in the U.S. dollar, through obtaining financing in such currency. Exchange differences related to this debt, which is regarded as the hedging instrument in cash flow hedge transactions, are recognized, net of taxes, in other comprehensive income and are accumulated in an equity reserve and reclassified to profit or loss when the hedged cash flows impact profit or loss. This term has been estimated at five years.

n) Current/non-current classification

In these combined statements of financial position, assets and liabilities expected to be recovered or settled within twelve months are presented as current items, except for post-employment and other similar obligations. Those assets and liabilities expected to be recovered or settled in more than twelve months are presented as non-current items. Deferred income tax assets and liabilities are classified as non-current.

When the Combined Group have any obligations that mature in less than twelve months but can be refinanced over the long term at the Combined Group’s discretion, through unconditionally available credit agreements with long-term maturities, such obligations are classified as long-term liabilities.

o) Income taxes

Income tax expense for the period is determined as the sum of current taxes from the Combined Group’s different combined entities and results from applying the tax rate to the taxable income for the period, after permitted deductions have been made, plus any changes in deferred tax assets and liabilities and tax credits, both for tax losses and deductions. Differences between the carrying amount and tax basis of assets and liabilities generate deferred tax assets and liabilities, which are calculated using the tax rates expected to apply when the assets and liabilities are realized or settled, based on tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax assets are recognized for all deductible temporary differences, tax losses and unused tax credits to the extent that it is probable that sufficient future taxable profits exist to recover the deductible temporary differences and make use of the tax credits. Such deferred tax asset is not recognized if the deductible temporary difference arises from the initial recognition of an asset or liability that:

• Did not arise from a business combination, and

• At initial recognition affected neither accounting profit nor taxable profit (loss).

With respect to deductible temporary differences associated with investments in combined entities, associates and joint arrangements, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profits will be available against which the temporary differences can be utilized.

Deferred tax liabilities are recognized for all temporary differences, except those derived from the initial recognition of goodwill and those that arose from investments in combined entities, associates and joint ventures in which the Combined Group can control their reversal and where it is probable that they will not be reversed in the foreseeable future.

Current tax and changes in deferred tax assets or liabilities are recorded in profit or loss or in equity, depending on where the gains or losses that triggered these tax entries have been recognized.

Any tax deductions that can be applied to current tax liabilities are credited to earnings within the line item “Income tax expenses”, except when doubts exist about their tax realization, in which case they are not recognized until they are effectively realized, or when they correspond to specific tax incentives, in which case they are recorded as government grants.

F-154

At the end of each reporting period, the Combined Group reviews the deferred taxes assets and liabilities recognized, and makes, if any, necessary corrections based on the results of this analysis.

Deferred tax assets and deferred tax liabilities are offset in the combined statement of financial position if has a legally enforceable right to set off current tax assets against current tax liabilities, and only when the deferred taxes relate to income taxes levied by the same taxation authority.

p) Revenue and expense recognition

Revenue is recognized when the gross inflow of economic benefits arising in the course of the Combined Group’s ordinary activities in the period occurs, provided that this inflow of economic benefits results in an increase in total equity other than increases relating to contributions from equity participants and such benefits can be measured reliably.

Revenues and expenses are recognized on an accrual basis and depending on the type of transaction; the following criteria for recognition are taken:

• Generation of electricity: Revenue is recognized based on physical delivery of energy and power, at prices established in the respective contracts, at prices stipulated in the electricity market by applicable regulations or at marginal cost determined on the spot market, as the case. This revenue includes an estimate of the service provided and not billed until the closing date (see Note 2.3).

• Distribution of electricity: Revenue is recognized based on the amount of energy supplied to customers during the period, at prices established in the respective contracts or at prices stipulated in the electricity market by applicable regulations, as appropriate. This revenue includes an estimate of the energy supplied not yet read the meters customer (see Note 2.3).

Revenue is recognized based on the economic substance of the transaction and are recognized when all and each of the following conditions are met:

• the entity has transferred to the buyer the significant risks and rewards of ownership of the goods;

• the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

• the amount of revenue can be measured reliably;

• it is probable that the economic benefits associated with the transaction will flow to the entity; and

• the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue is measured at the fair value of the consideration received or receivable that gives rise to the revenue.

In arrangements under which the Combined Group will perform multiple revenue-generating activities (multiple-element arrangement), the recognition criteria are applied to the separately identifiable components of the transaction in order to reflect the substance of the transaction or to two or more transactions together when they are linked in such a way that the commercial effect cannot be understood without reference to the series of transactions as a whole.

Revenue from rendering of services is only recognized when it can be estimated reliably, by reference to the stage of completion of the service rendered at the date of the statement of financial position. When the outcome of a transaction involving the rendering of services cannot be estimated reliably, revenue is recognized only to the extent of the expenses recognized that are recoverable.

The Combined Group excludes from revenue those gross inflows of economic benefits it receives when it acts as an agent or commission agent on behalf of third parties, and only recognizes as revenue economic benefits received for its own activity.

When goods or services are exchanged or swapped for goods or services of a similar nature and value, the exchange is not regarded as a revenue-generating transaction.

F-155

The Combined Group recognizes the net amount of non-financial asset purchases or sale contracts that are settled for a net amount of cash or through some other financial instruments. Contracts entered into and maintained for the purpose of receiving or delivering these non-financial assets are recognized on the basis of the contractual terms of the purchase, sale, or usage requirements expected by the entity.

Financial income (expense) is recognized using the effective interest rate applicable to the outstanding principal over the repayment period.

Expenses are recognized on an accruals basis, immediately in the event of expenditures that do not generate future economic benefits or when they do not meet the requirements for recording them as assets.

q) Dividends

Article 79 of the Chilean Companies Act establishes that, unless unanimously agreed otherwise by the shareholders of all issued shares, listed corporations must distribute a cash dividend to shareholders on an annual basis, pro rata to the shares owned or the proportion established in the company’s by-laws if there are preferred shares, of at least 30% of net income for each year, except when accumulated losses from prior years must be absorbed.

As it is practically impossible to achieve a unanimous agreement not to approve the mandatory dividend, given Enersis’ highly fragmented share capital. At the end of each reporting period the amount of the minimum statutory dividend obligation to its shareholders is determined, net of interim dividends approved during the fiscal year, and then accounted for in “Trade and other current payables” and “Accounts payable to related companies,” as appropriate, and recognized in Equity.

Interim and final dividends are deducted from Equity when approved by the competent body, which in the first case is normally the Combined Group’s Board of Directors and in the second case is the shareholders as agreed at an Ordinary Shareholders’ Meeting.

r) Share issuance costs

Share issuance costs, only when represents incremental expenses directly attributable to the transaction, are recognized directly in equity as a deduction from “Allocated capital,” net of any applicable taxes. If the allocated capital account has a zero balance or if the costs described exceed the balance, they are recognized in “Other reserves.”

4. SECTOR REGULATION AND ELECTRICITY SYSTEM OPERATIONS

4.1 Regulatory framework:

Chile

The electricity sector is regulated by the General Law of Electrical Services (Chilean Electricity Law), also known as DFL No. 1 of 1982, of the Ministry of Mining, whose compiled and coordinated text was established in DFL No. 4 issued in 2006 by the Ministry of Economy (the Electricity Law), as well as by an associated Regulation (D.S. No. 327 issued in 1998). Three government bodies are primarily responsible for enforcing this law: the National Energy Commission (CNE), which has the authority to propose regulated tariffs (node prices) and to draw up indicative plans for the construction of new generating units; the Superintendence of Electricity and Fuels (SEF), which supervises and oversees compliance with the laws, regulations, and technical standards that govern the generation, transmission, and distribution of electricity, as well as liquid fuels, and gas; and the Ministry of Energy, which is responsible for proposing and guiding public policies on energy matters. It also oversees the SEF, the CNE, and the Chilean Commission for Nuclear Energy (ChCNE), thus strengthening coordination and allowing for an integrated view of the energy sector. The Ministry of Energy also includes the Agency for Energy Efficiency and the Center for Renewable Energy, (Centro de Energías Renovables – CER), which in November 2014 was replaced by the National Center for Innovation and Development of Sustainable Energy (Centro Nacional para la Innovación y Fomento de las Energías Sustentables – CIFES). The Chilean Electricity Law has also

F-156

established a Panel of Experts whose main task is to resolve potential discrepancies among the players in the electricity market, including electricity companies, system operators, regulators, etc.

From a physical viewpoint, the Chilean electrical sector is divided into four electrical grids: theSistema Interconectado Central (SIC), theSistema Interconectado del Norte Grande (SING), and two separate medium-size grids located in southern Chile, one in Aysén and the other in Magallanes. The SIC, the main electrical grid, runs 2,400 km longitudinally and connects the country from Taltal in the north to Quellon, on the island of Chiloe in the south. The SING covers the northern part of the country, from Arica down to Coloso, covering a length of some 700 km. A law was passed on January 8, 2014, which will allow the SIC to be connected to the SING.

The electricity industry is organized into three business segments: generation, transmission, and distribution, all operating in an interconnected and coordinated manner, and whose main purpose is to supply electrical energy to the market at minimum cost while maintaining the quality and safety service standards required by the electrical regulations. As essential services, the power transmission and distribution businesses are natural monopolies; these segments are regulated as such by the electricity law, which requires free access to networks and regulates rates.

Under the Chilean Electricity Law, companies engaged in generation and transmission on an interconnected electrical grid must coordinate their operations through a centralizing operating agent, theCentro de Despacho Económico de Carga (CDEC), in order to operate the system at minimum cost while maintaining a reliable service. For this reason, the CDEC plans and operates the system, including the calculation of the so-called “marginal cost,” which is the price assigned to energy transfers among power generating companies.

Therefore, a company’s decision to generate electricity is subject to the CDEC’s operation plan. On the other hand, each company is free to decide whether to sell its energy to regulated or unregulated customers. Any surplus or deficit between a company’s sales to its customers and its energy supply is sold to, or purchased from, other generators at the spot market price.

A power generating company may have the following types of customers:

(i)Distribution companies that supply power to regulated customers: This distribution is to residential and commercial consumers and small and medium-size businesses with a connected capacity equal to or less than 500 kW located in the concession area of a distribution company. Customers that consume from 500 kW to 2,000 kW¹ may choose to be regulated or unregulated clients. Until 2009, the transfer prices between generators and distribution companies for supplying power to regulated customers were capped at a maximum value called the node price, which is regulated by the Ministry of Energy. Node prices are set every six months, in April and October, based on a report prepared by the CNE that takes into account projections of expected marginal costs in the system over the next 48 months for the SIC and 24 months for the SING. Beginning in 2010, and as the node price contracts begin to expire, the transfer prices between generators and distributors are being replaced by the results of regulated bidding processes, with a price cap set by the authority every six months.

(ii)Unregulated customers: Those customers, mainly industrial and mining companies, with a connected capacity of over 2,000 kW. These consumers can freely negotiate prices for electrical supply with generators and/or distributors. Customers with capacity between 500 and 2,000 kW (see footnote N° 1 above), as indicated in the preceding paragraph, have the option to contract energy at prices agreed upon with their suppliers or be subject to regulated prices, with a minimum term of at least four years under each pricing system.

(iii)Spot market: This represents energy and capacity transactions among generating companies that result from the CDEC’s coordination to keep the system running as economically as possible, where the surpluses (deficits) between a generator’s energy supply and the energy it needs to comply with business

¹  At the end of 2014, a legal amendment to the articles of the electricity law is going through Congress. One of the modifications involves raising the limit from 2,000 to 5,000 kW.

F-157

commitments are transferred through sales (purchases) to (from) other generators in the CDEC. In the case of energy, transfers are valued at the marginal cost, while node prices for capacity are set every semester by the regulators.

In Chile, the capacity that must be paid to each generator depends on an annual calculation performed by the CDEC to determine the firm capacity of each power plant, which is not the same as the dispatched capacity.

Beginning in 2010, with the enactment of Law 20,018, distribution companies must have sufficient supply permanently available to cover their entire demand projected for a period of three years; to do so, they must carry out long-term public bidding processes.

On May 15, 2014, the Minister of Energy presented the “Energy Agenda,” a document outlining general guidelines for the energy policy of the new government.

On September 29, 2014 a Tax Reform was approved which emphasizes the creation of so-called green tax to be levied on air emissions of particulate matter (PM), nitrogen oxides (NOx), sulfur dioxide (SO2) and carbon dioxide (CO2). The tax will be US$5/ton for CO2 emissions.

Non-Conventional Renewable Energy

In Chile,Law 20,257 was enacted in April of 2008 to encourage the use of Non-Conventional Renewable Energy (NCRE). The principal aspect of this law is that at least 5% of the energy sold by generation companies to their customers must come from renewable sources between years 2010 and 2014. This requirement progressively increases by 0.5% from year 2015 until 2024, when a 10% renewable energy requirement will be reached. This law was amended in 2013 by Law 20,698, dubbed the “20/25 law,” as it establishes that by 2025, 20% of power supplied will be generated by NCRE. It does not change the previous law’s plan for supplying power under agreements in effect in July 2013.

Limits on integration and concentration

In general, Chile has legislation in effect that defends free competition and, together with specific regulations that apply to the electricity market, defines criteria to avoid certain levels of economic concentration and/or abusive market practices.

In principle, the regulators allow the participation of companies in different activities (e.g. generation, distribution, and commercialization) as long as there is an adequate separation of each activity, for both accounting and company purposes. Nevertheless, most of the restrictions imposed involve the transmission sector mainly due to its nature and to the need to guarantee adequate access to all agents. In Chile there are specific restrictions if generation or distribution companies want to become majority shareholders in transmission companies.

Regarding concentration in a specific sector, while there are regulations on free competition, there are no specific quantitative limits on vertical or horizontal integration. However, the General Law on Electrical Services provides that companies that operate on or have ownership in the Trunk Transmission Systems cannot engage in, either directly or indirectly, activities that are in any way involved in the business of power generation or distribution.

Market for unregulated customers

In Chile, distributing companies can supply their customers under regulated or freely-agreed conditions. For clients purchasing more than 500kW and less than 2,000 Kw may choose between the regulated and unregulated markets. Clients purchasing more than 2,000 kW are required to be categorized as unregulated customers. Clients purchasing less than 500 kW are regulated customers and such threshold is applied if energy is purchased from renewable sources, for which the government provide incentives through a discount on tolls.

F-158

4.2 Tariff Revisions:

General Aspects

In Chile selling prices charged to clients are based on the purchase price paid to generators plus a component associated with the value added in distribution. Regulators set this value periodically through reviews of distribution tariffs. As a result, distribution is essentially a regulated activity.

The Distribution Value Added (VAD) is established every four years. For this, the local regulator, (the CNE) classifies companies by typical areas that group together companies with similar distribution costs. A distribution company’s return on investment depends on the company’s performance compared to model company standards defined by the regulator. On April 2, 2013, the Energy Ministry published Tariff Decree No. 1T in the Official Gazette. This was made retroactive to November 4, 2012 and will remain in effect until November 3, 2016. The next tariff-setting process will take place in 2016 and will cover the period November 2016 to November 2020.

Decree No. 14, which established the subtransmission tolls for this segment for 2011-2014 was published in the Official Gazette on April 9, 2013. The Average Node Price Decrees transfer these tolls to final customers, as they are part of distribution company’s costs.

The Average Node Price Decrees, which include these new subtransmission tolls, were published between October and December 2014. During the first months of 2015, distribution companies should invoice final customers for these new tolls, as instructed by the Superintendence of Electricity and Fuels. Moreover, during 2014 there were delays in publishing the Short Term Price Node Decrees (PNCP), which is why the supply contracts were not indexed on the date these decrees came into operation, and accruals for these differences were recorded. Estimated amounts for these settlements were included under “Trade debtors” with respect to collection rights, and under “Trade and other accounts payable” for obligations to generators. Chilectra S.A. during the year 2014 has recognized provisions for sale and purchase from energy and capacity which generated a net profit for ThCh$75,313,324 (net loss for ThCh$ 3,356,862 in 2013), resulting from the non-application of the Average Node Price decrees (PNP).

5. BUSINESS COMBINATION – ACQUISITION OF GASATACAMA

On April 22, 2014, the Combined Group through its subsidiary Endesa Chile acquired the remaining 50% ownership interest in Inversiones GasAtacama Holding Limitada (hereinafter “GasAtacama”) that was owned by Southern Cross Latin America Private Equity Fund III L.P. (hereinafter “Southern Cross”) at that time.

Consequently, the Combined Group now holds 100% of control over GasAtacama which at the same time is the owner of (i) the Atacama Plant, a 780 MW capacity combined cycle thermal power plant fired by natural gas or diesel oil located in the north of Chile; (ii) the 940 km Atacama Pipeline that runs between Coronel Cornejo in Argentina and Mejillones in Chile; and (iii) the 223 km Taltal Pipeline between Mejillones and Paposo.

Upon obtaining control of GasAtacama, the Combined Group’s total generation capacity in Chile’s northern grid (theSistema Interconectado del Norte Grande, or SING) reached 1,000 MW, and it is expected to enable us to satisfy greater industrial, residential and mining demand through a competitively priced energy supply with a low environmental impact.

GasAtacama acquisition was recognized using the accounting criteria for business combinations achieved in stages as detailed in Note 2.6.1.

Since the date of acquisition, GasAtacama has contributed ThCh$113,074,006 in revenues and ThCh$33,443,547 in income before tax to the Combined Group’s results. Had the acquisition taken place on January 1, 2014, it is estimated that these amounts would have been ThCh$179,474,707 in revenues and ThCh$41,772,291 in income before tax for the year ended December 31, 2014.

F-159

a) Consideration transferred

The following table summarizes the fair value of each type of consideration transferred in connection with the GasAtacama acquisition:

	ThCh$
Total price paid		174,028,622
Transaction recorded separately from the assets acquired and liabilities assumed (i)		(16,070,521	)
Total consideration paid in cash (Note 7)		157,958,101

(i) The total consideration transferred was ThCh$174,028,622 and included the cession of rights to collect an outstanding loan for ThCh$16,070,521 owed by Pacific Energy Sub Co. (a subsidiary of Southern Cross) to Atacama Finance Co. (a subsidiary of GasAtacama).

b) Acquisition-related costs

Endesa Chile incurred costs for ThCh$23,543 in financial advisory fees related to the acquisition of Inversiones GasAtacama Holding Limitada. These costs have been recognized under the line item “Other expenses” in the combined statements of comprehensive income.

c) Identifiable assets acquired and liabilities assumed

The following table summarizes the fair values recognized for identifiable assets acquired and liabilities assumed in connection with the acquisition:

	Fair Value
Identifiable assets acquired, net	ThCh$
Cash and cash equivalents		120,303,339
Trade and other current receivables		34,465,552
Current accounts receivable from related companies		5,692,257
Inventories		15,009,265
Property, plant and equipment		199,660,391
Deferred tax assets		2,392,531
Other assets		23,906,126
Trade and other current payables		(30,818,836	)
Current accounts payable to related companies		(34,445,277	)
Deferred tax liabilities		(28,923,167	)
Other liabilities		(10,874,817	)
Total		296,367,364

No risk of default is expected for the gross amount of trade and other receivables.

Given the nature of GasAtacama’s business and assets, the fair value of the assets acquired and liabilities assumed was measured using the following valuation approaches:

i. The market approach using the comparison method, based on quoted market prices for identical or comparable items when available.

ii. The cost approach or depreciated replacement cost, which reflects adjustments for physical deterioration and functional and economic obsolescence.

iii. The income approach, which uses valuation techniques that convert future amounts (such as cash flows or income and expenses) into a single current amount (that is, discounted). The fair value measurement reflects current market expectations for those future amounts.

F-160

Reconciliation of values

Finally, the fair values are reached from an assessment and reconciliation of the results obtained from the methods selected, based on the nature of each asset acquired and liability assumed.

If during a period of one year (measurement period) after the acquisition date new information is obtained about facts and circumstances that existed as of the acquisition date and result in the recognition of additional assets or liabilities, the accounting of the acquisition will be revised and the corresponding adjustment would be made, following the criteria described in Note 2.6.

d) Goodwill

	ThCh$
Total consideration paid		157,958,101
Fair value of pre-existing interest in the acquiree		157,147,000
Fair value of identifiable net assets acquired		(296,367,364	)
Goodwill (See Note 16)		18,737,737

The goodwill is attributable primarily to the value of the synergies expected to be obtained by integrating GasAtacama into the Combined Group. These synergies include reduced administrative, research and structure costs, which could be absorbed by Endesa Chile.

e) Remeasurement of pre-existing interest and currency translation differences

The remeasurement of the fair value of Endesa Chile’s pre-existing 50% equity interest in GasAtacama resulted in a gain of ThCh$21,546,320. The gain recognized was the positive difference between the acquisition-date fair value of the pre-existing equity interest of ThCh$157,147,000, and the carrying amount of the investment accounted for using the equity method at the acquisition date of ThCh$135,600,682.

In addition, the exchange differences on translation of the pre-existing equity interest accumulated in the equity of the Combined Group at the acquisition date, were reclassified to profit or loss resulting in a gain of ThCh$21,006,456.

Both amounts have been recorded in the caption “Other gains (losses)” in the combined statement of comprehensive income (see Note 32).

6. CAPITAL INCREASE

During the first quarter of 2013, Enersis completed capital increase that was approved by the Extraordinary Shareholders’ Meeting held on December 20, 2012. All of the issued shares were subscribed (see Note 26.1.1).

The capital increase amounted to ThCh$2,845,858,393. A 60.62% of the shares were subscribed by Endesa, S.A., its parent company located in Spain, and paid for with its investments in Latin America valued at ThCh$1,724,400,000. The remaining shares were subscribed and paid for with non-controlling interests of Enersis via cash payments of ThCh$1,121,458,393, which included a share issuance premium of ThCh$1,460,503. This capital increase has been reflected in the combined statement of changes in equity in relation to the contributions in kind of additional interests of Endesa, S.A.’s in certain entities in Chile for ThCh$1,092,347,262.

F-161

7. CASH AND CASH EQUIVALENTS

a) The detail of cash and cash equivalents as of December 31, 2014 and 2013 and January 1, 2013 is as follows:

Cash and cash equivalents	Balance at
	12-31-2014  ThCh$		12-31-2013 ThCh$		1-1-2013  ThCh$
Cash balances		634,059		162,345		137,261
Bank balances		17,765,485		11,933,898		8,725,791
Time deposits		83,326,061		131,877,605		32,557,275
Other fixed-income instruments		31,260,322		70,933,248		52,673,433
Total		132,985,927		214,907,097		94,093,760

Time deposits have a maturity of three months or less from their date of acquisition and accrue the market interest for this type of short-term investment. Other fixed-income investments are mainly comprised of repurchase agreements with original maturities of less than or equal to 90 days. There are no restrictions for significant amounts of cash availability.

b) The detail of cash and cash equivalents by currency is as follows:

Currency	Balance at
	12-31-2014  ThCh$		12-31-2013  ThCh$		1-1-2013  ThCh$
Chilean peso		44,863,907		117,344,638		93,217,835
Argentine peso		4,206,734		—		—
U.S. dollar		83,915,286		97,562,458		875,924
Total		132,985,927		214,907,097		94,093,760

c) The following table shows the amounts paid to obtain control of combined entities as of December 31, 2014 and 2013 and January 1, 2013:

Acquisition of Subsidiaries	12-31-2014 ThCh$			12-31-2013 ThCh$			1-1-2013 ThCh$
Acquisitions paid in cash and cash equivalents		(157,958,101	)		(5,084,700	)		(7,140,000	)
Cash and cash equivalents in entities acquired		120,303,339			—			—
Total, net (*)		(37,654,762	)		(5,084,700	)		(7,140,000	)

(*) See Note 5.

d) The following table shows a reconciliation of cash and cash equivalents presented in the statement of financial position with cash and cash equivalents in the cash flow statement at December 31, 2014, 2013 and January 1, 2013:

	Balance at
	12-31-2014 ThCh$		12-31-2013 ThCh$		1-1-2013 ThCh$
Cash and cash equivalents (statement of financial position)		132,985,927		214,907,097		94,093,760
Cash and cash equivalents attributable to assets held for sale (*)		29,702		—		—
Cash and cash equivalents (statement of cash flow)		133,015,629		214,907,097		94,093,760

(*) See Note 13.

F-162

e) The following table shows cash and cash equivalents that have been received from the sale of shares in combined entities:

Loss of control at Subsidiaries	12-31-2014 ThCh$			12-31-2013 ThCh$		1-1-2013 ThCh$
Amounts received for the sale of Subsidiaries(*)		57,173,142			—		—
Amounts in cash and cash equivalents		(16,311,571	)		—		—
Total net		40,861,571			—		—

(*) See Note 2.4.1 and Note 32.

8. OTHER FINANCIAL ASSETS

The detail of other financial assets as of December 31, 2014 and 2013 and January 1, 2013 is as follows:

Other Financial Assets	Current						Non-current
	12-31-2014 ThCh$		12-31-2013 ThCh$		1-1-2013 ThCh$		12-31-2014 ThCh$		12-31-2013 ThCh$		1-1-2013 ThCh$
Available-for-sale financial investments – unquoted equity securities or with limited liquidity		—		—		—		2,670,665		2,753,413		2,685,780
Available-for-sale financial investments – quoted equity securities		—				—		362,169		29,195		31,468
Financial assets held to maturity (*)		948,789		954,230				—		—		—
Hedging derivatives (*)		508,458		20,948,126		—		3,695,636		—		28,676,421
Non-hedging derivatives (*)		33,882		361,595		—		22,002		—		—
Financial assets at fair value through profit or loss (*)		—		—		3,864		—		—		—
Other		—		—		—		—		—		181,863
Total		1,491,129		22,263,951		3,864		6,750,472		2,782,608		31,575,532

(*) See Note 22.1.a

The amounts included in “financial assets held to maturity” and “financial assets at fair value with change in profit or loss” correspond mainly to time deposits and other highly liquid investments that are readily convertible to cash and subject to a low risk of changes in value, but that do not fulfill the definition of cash equivalent as defined in Note 3.g.2 (e.g. with maturity over 90 days from time of investment).

9. TRADE AND OTHER RECEIVABLES

a) The detail of trade and other receivables as of December 31, 2014 and 2013 and January 1, 2013 is as follows:

Trade and Other Receivables, Gross	Balance at
	12-31-2014				12-31-2013				1-1-2013
	Current ThCh$		Non-current ThCh$		Current ThCh$		Non-current ThCh$		Current ThCh$		Non-current ThCh$
Trade and other receivables, gross		607,916,372		7,496,412		333,866,780		6,875,034		326,332,459		7,548,389
Trade receivables, gross		490,553,898		3,318,126		299,153,206		2,864,459		234,068,138		3,343,742
Other receivables, gross		117,362,474		4,178,286		34,713,574		4,010,575		92,264,321		4,204,647

F-163

Trade and Other Receivables, Net	Balance at
	12-31-2014				12-31-2013				1-1-2013
	Current ThCh$		Non-current ThCh$		Current ThCh$		Non-current ThCh$		Current ThCh$		Non-current ThCh$
Trade and other receivables, net		578,081,205		7,496,412		302,980,633		6,875,034		302,204,856		7,548,389
Trade receivables, net		466,647,454		3,318,126		276,692,065		2,864,459		214,225,210		3,343,742
Other receivables, net		111,433,751		4,178,286		26,288,568		4,010,575		87,979,646		4,204,647

There are no significant trade and other receivables balances held by the Combined Group that are not available for its use.

The Combined Group does not have customers with sales representing 10% or more of its total combined revenues for years ended December 31, 2014 and 2013.

Refer to Note 10.1 for detailed information on amounts, terms and conditions associated with accounts receivable from related companies.

b) As of December 31, 2014 and 2013 and January 1, 2013, the balance of past due but not impaired trade receivables is as follows

Trade Receivables Past Due But Not Impaired	Balance at
	12-31-2014		12-31-2013		1-1-2013
	ThCh$		ThCh$		ThCh$
Less than three months		39,058,318		38,794,147		28,857,798
Between three and six months		2,624,968		23,933,636		2,765,184
Between six and twelve months		3,693,880		3,193,765		12,948,994
More than twelve months		12,957,133		12,481,822		3,343,742
Total		58,334,299		78,403,370		47,915,718

c) The reconciliation of changes in the allowance for impairment of trade receivables is as follows:

Trade Receivables Past Due and Impaired	Current and Non-current ThCh$
January 1, 2013		24,127,603
Increases (decreases) for the year (*)		7,940,767
Amounts written off		(1,182,223	)
Foreign currency translation differences		—
Balance at December 31, 2013		30,886,147
Increases (decreases) for the year (*)		655,600
Amounts written off		(1,706,580	)
Foreign currency translation differences		—
Balance at December 31, 2014		29,835,167

(*) See Note 30 for impairment of financial assets.

Write-offs for past due receivables

Past due receivables are written off once all collection procedures and legal proceedings have been exhausted and the debtors’ insolvency has been demonstrated. In our power generation business, this process normally takes at least one year. In our distribution business the process takes at least twenty four months. Overall, the risk of writing off our trade receivables, is limited (see Notes 3.e and 21.5).

F-164

10. BALANCES AND TRANSACTIONS WITH RELATED COMPANIES

Related party transactions are performed at current market conditions.

Transactions between the Combined Group and its combined entities and joint ventures have been eliminated on combination and are not itemized in this note.

As of the date of these financial statements, no guarantees have been given or received nor has any allowance for bad or doubtful accounts been recorded with respect to receivable balances for related party transactions.

The controlling shareholder of Enersis Chile is the Italian corporation Enel S.p.A.

10.1 Balances and transactions with related companies

The balances of accounts receivable and payable between the Combined Group and its non-combined related companies are as follows:

a) Receivables from related companies

							Balance at
							Current						Non-Current
Taxpayer ID Number	Company	Country	Relationship	Description of transaction	Term of transaction	Currency	12-31-2014 ThCh$		12-31-2013 ThCh$		01-01-2013 ThCh$		12-31-2014 ThCh$		12-31-2013 ThCh$		01-01-2013 ThCh$
Foreign	Enel Latinoamérica S.A	Spain	Related to Immediate Parent	Other services	Less than 90 days	CH$		26,165		26,165		26,165		—		—		—
Foreign	Enel Latinoamérica S.A	Spain	Related to Immediate Parent	Dividends	Less than 90 days	CH$		—		82,273		—		—		—		—
Foreign	Endesa España	Spain	Common Immediate Parent	Other services	Less than 90 days	CH$		61,852		4,229		4,229		—		—		—
96.524.140-K	Empresa Electrica Panguipulli S.A.	Chile	Common Immediate Parent	Energy sales	Less than 90 days	CH$		273,705		66,697		22,457		—		—		—
96.880.800-1	Empresa Electrica Puyehue S.A.	Chile	Common Immediate Parent	Energy sales	Less than 90 days	CH$		64		11,949		95,399		—		—		—
Foreign	Enel Energy Europe	Spain	Common Immediate Parent	Other services	Less than 90 days	CH$		—		799,470		—		—		—		—
Foreign	Generalima S.A.	Peru	Common Immediate Parent	Other services	Less than 90 days	CH$		—		—		23,890		—		—		—
96.806.130-5	Electrogas S.A.	Chile	Associate	Dividends	Less than 90 days	CH$		1,477,177		1,375,492		—		—		—		—
76.788.080-4	GNL Quintero S.A.	Chile	Associate	Energy sales	Less than 90 days	CH$		649,986		366,882		771,985		—		—		—
76.418.940-k	GNL Chile S.A.	Chile	Associate	Advance natural gas purchase	Less than 90 days	US$		11,845,926		11,382,879		—		—		—		—
76.418.940-k	GNL Chile S.A.	Chile	Associate	Other services	Less than 90 days	US$		1,644,650		1,717,013		546,833		—		—		—
76.418.940-k	GNL Chile S.A.	Chile	Associate	Loans	Less than 90 days	US$		549,359		445,022		379,802		—		—		—
76.014.570-K	Inversiones Gas Atacama Holding Ltda. (1)	Chile	Joint Venture	Other services	Less than 90 days	US$		—		544,015		213		—		—		—
76.014.570-K	Inversiones Gas Atacama Holding Ltda. (1)	Chile	Joint Venture	Loans	Less than 90 days	US$		—		14,839,233		13,336,205		—		—		—
76.014.570-K	Inversiones Gas Atacama Holding Ltda.	Chile	Joint Venture	Energy sales	Less than 90 days	US$		—		—		98,150		—		—		—
Foreign	CCSA Endesa Costanera	Argentina	Common Immediate Parent	Other services	Less than 90 days	Ar$		—		—		5,000,998		—		—		5,712,830
77.017.930-0	Transmisora Eléctrica de Quillota Ltda.	Chile	Joint Venture	Other services	Less than 90 days	CH$		—		—		181,855		—		—		—
Foreign	Endesa Generación	Spain	Common Immediate Parent	Commodity derivatives	Less than 90 days	CH$		99,662		129,780		784,741		—		—		—
Foreign	Enel Ingegneria e Innovazione	Italy	Common Immediate Parent	Other services	Less than 90 days	CH$		10,299		25,908		36,340		—		—		—
Foreign	PH Chucas Costa Rica	Costa Rica	Common Immediate Parent	Other services	Less than 90 days	CH$		—		147,234		42,019		—		—		—
TBD	Enersis Americas	Chile	Common Immediate Parent	Other services	Less than 90 days	CH$		38,720		94,863		237,279		—		—		—
TBD	Chilectra Américas	Chile	Common Immediate Parent	Other services	Less than 90 days	CH$		2,394		127,086		116,118		—		—		—
TBD	Endesa Américas	Chile	Common Immediate Parent	Other services	Less than 90 days	CH$		57,775		33,834		4,432		—		—		—
76.652.400-1	Centrales Hidroeléctricas de Aysen S.A.	Chile	Joint Venture	Other services	Less than 90 days	CH$		—		—		292,518		—		—		—

F-165

							Balance at
							Current						Non-Current
Taxpayer ID Number	Company	Country	Relationship	Description of transaction	Term of transaction	Currency	12-31-2014 ThCh$		12-31-2013 ThCh$		01-01-2013 ThCh$		12-31-2014 ThCh$		12-31-2013 ThCh$		01-01-2013 ThCh$
76.126.507-5	Parque Eolico Talinay Oriente SA	Chile	Common Immediate Parent	Energy sales	Less than 90 days	CH$		21,647		20		—		—		—		—
Foreign	Distrilec	Argentina	Common Immediate Parent	Other services	Less than 90 days	CH$		1,305		—		—		—		—		—
Foreign	Endesa Brasil	Brazil	Common Immediate Parent	Other services	Less than 90 days	Real		—		1,959,181		1,472,887		—		—		—
Foreign	Emgesa S.A. E.S.P.	Colombia	Common Immediate Parent	Other services	Less than 90 days	CH$		—		—		23,797		—		—		—
Foreign	Edegel S.A.A	Peru	Common Immediate Parent	Other services	Less than 90 days	CH$		—		—		85,146		—		—		—
Foreign	Edelnor	Peru	Common Immediate Parent	Other services	Less than 90 days	Sol		—		—		33,689		—		—		—
Foreign	Empresa de Distribución Eléctrica de Lima Norte S.A.A	Peru	Common Immediate Parent	Other services	Less than 90 days	CH$		42,355		18,326		—		—		—		—
99.573.910-0	Chilectra Inversud S.A.	Chile	Common Immediate Parent	Other services	Less than 90 days	CH$		149,609		151,342		1,676,194		—		—		—
Foreign	Codensa	Colombia	Common Immediate Parent	Other services	Less than 90 days	CP		—		—		125,526		—		—		—
		Total						16,952,650		34,348,893		25,418,867		—		—		5,712,830

(1) See Notes 2.4.1, 5 and 14.

b) Accounts payable to related companies

							Balance at
							Current						Non-Current
Taxpayer ID Number	Company	Country	Relationship	Description of transaction	Term of transaction	Currency	12-31-2014 ThCh$		12-31-2013 ThCh$		01-01-2013 ThCh$		12-31-2014 ThCh$		12-31-2013 ThCh$		01-01-2013 ThCh$
Foreign	Enel Latinoamérica S.A	Spain	Related to Immediate Parent	Dividends	Less than 90 days	CH$		24,842,818		27,763,950		29,321,732		—		—		—
96.524.140-K	Empresa Electrica Panguipulli S.A.	Chile	Common Immediate Parent	Energy purchases	Less than 90 days	CH$		1,708,804		684,882		216,029		—		—		—
96.880.800-1	Empresa Electrica Puyehue S.A.	Chile	Common Immediate Parent	Energy purchases	Less than 90 days	CH$		—		2,865		15,896		—		—		—
96.806.130-5	Electrogas S.A.	Chile	Associate	Other services	Less than 90 days	CH$		335,962		200,821		54,607		—		—		—
76.418.940-k	GNL Chile S.A.	Chile	Associate	Natural Gas purchases	Less than 90 days	US$		19,808,375		13,864,085		25,884,955		—		—		—
Foreign	Endesa Generación	Spain	Common Immediate Parent	Fuel purchases	Less than 90 days	CH$		2,881,032		4,947,081		4,556,926		—		—		—
Foreign	Endesa Generación	Spain	Common Immediate Parent	Commodity derivatives	Less than 90 days	CH$		1,102,253		—		32,200		—		—		—
Foreign	Enel Energy Europe	Spain	Common Immediate Parent	Other services	Less than 90 days	CH$		—		240,707		336,240		—		—		—
Foreign	Enel Iberoamérica S.R.L	Spain	Parent	Dividends	Less than 90 days	CH$		12,509,673		—		—		—		—		—
Foreign	Enel Iberoamérica S.R.L	Spain	Parent	Other services	Less than 90 days	CH$		382,893		—		—		—		—		—
Foreign	Enel Distribuzione	Italy	Common Immediate Parent	Other services	Less than 90 days	CH$		73,730		65,500		—		—		—		—
Foreign	Enel Produzione	Italy	Common Immediate Parent	Other services	Less than 90 days	CH$		99,837		80,928		80,928		—		—		—
Foreign	Enel Ingegneria e Innovazione	Italy	Common Immediate Parent	Other services	Less than 90 days	CH$		2,024,190		2,073,649		—		—		—		—
Foreign	Endesa Costanera	Argentina	Common Immediate Parent	Other services	Less than 90 days	Ar $		—		—		3,984,205		—		—		—
76.014.570-K	Inversiones Gas Atacama Holding Ltda. (1)	Chile	Joint Venture	Gas purchases	Less than 90 days	US$		—		4,846,992		1,629,774		—		—		—
76.014.570-K	Inversiones Gas Atacama Holding Ltda. (1)	Chile	Joint Venture	Other services	Less than 90 days	CH$		—		—		90,625		—		—		—
76.014.570-K	Inversiones Gas Atacama Holding Ltda.	Chile	Joint Venture	Energy purchases	Less than 90 days	CH$		—		—		371,729		—		—		—
77.017.930-0	Transmisora Eléctrica de Quillota Ltda.	Chile	Joint Venture	Other services	Less than 90 days	CH$		—		219,866		—		—		—		—
77.017.930-0	Transmisora Eléctrica de Quillota Ltda.	Chile	Joint Venture	Tolls	Less than 90 days	CH$		—		—		66,037		—		—		—
77.017.930-0	Transmisora Eléctrica de Quillota Ltda.	Chile	Joint Venture	Other services	Less than 90 days	CH$		157,762		—		158,713		—		—		—
Foreign	Enel Green Power España SL	Spain	Common Immediate Parent	Other services	Less than 90 days	CH$		23,982		—		—		—		—		—
Foreign	Endesa España	Spain	Common Immediate Parent	Other services	Less than 90 days	CH$		129,492		—		—		—		—		—
Foreign	Endesa España	Spain	Common Immediate Parent	Dividends	Less than 90 days	CH$		—		13,979,167		—		—		—		—
76.126.507-5	Parque Eolico Talinay Oriente SA	Chile	Common Immediate Parent	Energy purchases	Less than 90 days	CH$		—		400,585		—		—		—		—

F-166

							Balance at
							Current						Non-Current
Taxpayer ID Number	Company	Country	Relationship	Description of transaction	Term of transaction	Currency	12-31-2014 ThCh$		12-31-2013 ThCh$		01-01-2013 ThCh$		12-31-2014 ThCh$		12-31-2013 ThCh$		01-01-2013 ThCh$
TBD	Enersis Americas	Chile	Common Immediate Parent	Loans	Less than 90 days	US$		—		262,982,628		—		—		—		—
TBD	Enersis Américas	Chile	Common Immediate Parent	Loans	Less than 90 days	CH$		60,858,956		—		—		—		—		—
TBD	Enersis Américas	Chile	Common Immediate Parent	Current Account	Less than 90 days	CH$		39,315,938		—		—		—		—		—
Foreign	Endesa Brasil	Brazil	Common Immediate Parent	Other services	Less than 90 days	CH$		—		92,999		—		—		—		—
Foreign	Endesa Cemsa S.A.	Argentina	Common Immediate Parent	Other services	Less than 90 days	CH$		58,720		—		—		—		—		—
99.573.910-0	Chilectra Inversud S.A.	Chile	Common Immediate Parent	Current Account	Less than 90 days	CH$		20,775,085		—		—		—		—		—
99.573.910-0	Chilectra Inversud S.A.	Chile	Common Immediate Parent	Other services	Less than 90 days	CH$		—		4,644,832		—		—		—		—
Foreign	Enel Brasil	Brazil	Common Immediate Parent	Other services	Less than 90 days	CH$		95,691		—		—		—		—		—
Foreign	Endesa Cemsa S.A.	Argentina	Common Immediate Parent	Other services	Less than 90 days	CH$		—		80,399		—		—		—		—
Foreign	Endesa Cemsa S.A.	Argentina	Common Immediate Parent	Fuel purchases	Less than 90 days	Ar $		—		—		91,068		—		—		—
		Total						187,185,193		337,171,936		66,891,664		—		—		—

(2) See Notes 2.4.1, 5 and 14.

c) Significant transactions and effects on income/expenses:

Transactions with related companies that are not combined and their effects on profit or loss are as follows:

					For the years ended
Taxpayer ID Number	Company	Country	Relationship	Description of transaction	12-31-2014 ThCh$			12-31-2013 ThCh$			12-31-2012 ThCh$
Foreign	Endesa Energía S.A.	Spain	Common Immediate Parent	Gas sales		—			21,397,171			—
Foreign	Endesa Energía S.A.	Spain	Common Immediate Parent	Other operating income		—			51,722			—
Foreign	Endesa Generación	Spain	Common Immediate Parent	Fuel consumption		(30,318,202	)		(47,540,061	)		(41,522,504	)
Foreign	Endesa Generación	Spain	Common Immediate Parent	Commodity derivatives		(2,521,138	)		—			—
Foreign	Endesa Trading	Spain	Common Immediate Parent	Fuel consumption		—			—			(705,859	)
Foreign	Generalima S.A.	Peru	Common Immediate Parent	Other services rendered		—			—			23,890
76.418.940-k	GNL Chile S.A.	Chile	Associate	Gas consumption		(114,115,041	)		(60,095,868	)		(168,238,842	)
76.418.940-k	GNL Chile S.A.	Chile	Associate	Gas transportation		(39,638,398	)		(34,796,720	)		(34,209,731	)
76.418.940-k	GNL Chile S.A.	Chile	Associate	Other services rendered		56,042			769,402			220,493
76.418.940-k	GNL Chile S.A.	Chile	Associate	Other financial income		58,169			40,124			21,995
76.788.080-4	GNL Quintero S.A.	Chile	Associate	Energy sales		2,671,120			2,808,698			638,187
76.788.080-4	GNL Quintero S.A.	Chile	Associate	Electricity tolls		47,263			—			—
76.788.080-4	GNL Quintero S.A.	Chile	Associate	Other services rendered		956,854			835,543			661,296
96.976.600-0	Gestión Social S.A. (*)	Chile	Related to Director	Other services rendered		—			—			49,133
78.488.290-k	Tironi y Asociados S.A.	Chile	Related to Director	Other services rendered		—			—			2,475
96.880.800-1	Empresa Eléctrica Puyehue S.A.	Chile	Common Immediate Parent	Energy purchases		(1,407,349	)		(109,699	)		(1,988,042	)
96.880.800-1	Empresa Eléctrica Puyehue S.A.	Chile	Common Immediate Parent	Electricity tolls		(3,805	)		—			—
96.880.800-1	Empresa Eléctrica Puyehue S.A.	Chile	Common Immediate Parent	Energy sales		(12,399	)		227,765			99,120
96.524.140-K	Empresa Eléctrica Panguipulli S.A.	Chile	Common Immediate Parent	Energy purchases		(10,113,496	)		(6,118,816	)		(789,477	)
96.524.140-K	Empresa Eléctrica Panguipulli S.A.	Chile	Common Immediate Parent	Electricity tolls		(260,495	)		—			—
96.524.140-K	Empresa Eléctrica Panguipulli S.A.	Chile	Common Immediate Parent	Other services rendered		197,812			—			—
96.524.140-K	Empresa Eléctrica Panguipulli S.A.	Chile	Common Immediate Parent	Energy sales		942,615			356,056			133,735
Foreign	Enel Distribuzione	Italy	Parent	Other fixed operating expenses		—			—			(97,053	)
Foreign	Enel Energy Europe	Spain	Common Immediate Parent	Other fixed operating expenses		—			(826,603	)		(336,239	)
Foreign	Enel Iberoamérica S.R.L	Spain	Parent	Other fixed operating expenses		(2,860,930	)		—			—
96.806.130-5	Electrogas S.A.	Chile	Associate	Gas tolls		(3,409,581	)		(2,734,877	)		(2,175,039	)
96.806.130-5	Electrogas S.A.	Chile	Associate	Fuel consumption		(434,289	)		(428,555	)		(697,653	)
Foreign	Carboex S.A.	Spain	Common Immediate Parent	Fuel consumption		—			—			(5,042,960	)
Foreign	PH Chucas Costa Rica	Costa Rica	Common Immediate Parent	Other services rendered		—			236,173			481,177
Foreign	Endesa Distribución Eléctrica	Spain	Common Immediate Parent	Other fixed operating expenses		—			—			(6,133	)
Foreign	Enel Ingegneria e Innovazione	Italy	Common Immediate Parent	Other services rendered		—			32,569			30,536
Foreign	Enel Ingegneria e Innovazione	Italy	Common Immediate Parent	Other fixed operating expenses		—			(479,542	)		—
76.652.400-1	Centrales Hidroeléctricas De Aysén S.A.	Chile	Joint Venture	Other financial income		—			46,444			—
76.652.400-1	Centrales Hidroeléctricas De Aysén S.A.	Chile	Joint Venture	Other services rendered		23,891			10,281			—
76.014.570-K	Inversiones GasAtacama Holding Ltda. (1)	Chile	Joint Venture	Energy purchases		—			(9,295,172	)		(6,589,964	)
76.014.570-K	Inversiones GasAtacama Holding Ltda. (1)	Chile	Joint Venture	Gas transportation		—			(20,937,075	)		(20,131,152	)
76.014.570-K	Inversiones GasAtacama Holding Ltda. (1)	Chile	Joint Venture	Energy sales		—			95,845			64,914
76.014.570-K	Inversiones GasAtacama Holding Ltda. (1)	Chile	Joint Venture	Other financial income		—			489,864			765,504
76.014.570-K	Inversiones GasAtacama Holding Ltda. (1)	Chile	Joint Venture	Other fixed operating expenses		—			(219,671	)		(417,892	)
77.017.930-0	Transmisora Eléctrica de Quillota Ltda.	Chile	Joint Venture	Electricity tolls		(1,378,743	)		(1,243,417	)		(1,219,958	)
Foreign	Endesa España	Spain	Common Immediate Parent	Other operating income		57,623			—			—
Foreign	Enel Trade S.p.A	Italy	Common Immediate Parent	Other operating income		3,222			—			—
TBD	Endesa Américas	Chile	Common Immediate Parent	Other services rendered		—			305,347			300,435
TBD	Chilectra Américas	Chile	Common Immediate Parent	Other services rendered		—			625,195			615,157
TBD	Enersis Américas	Chile	Common Immediate Parent	Other services rendered		—			290,779			264,472
TBD	Enersis Américas	Chile	Common Immediate Parent	Other financial expenses		(15,437,257	)		(7,357,031	)		—
Foreign	Codensa S.A.	Colombia	Common Immediate Parent	Other services rendered		—			310,793			143,999
Foreign	Codensa S.A.	Colombia	Common Immediate Parent	Other variable expenses		—			(27,445	)		—
Foreign	Endesa Brasil	Brazil	Common Immediate Parent	Other services rendered		—			307,467			850,045
Foreign	Emgesa S.A.	Colombia	Common Immediate Parent	Other services rendered		—			30,000			—
Foreign	Emgesa S.A.	Colombia	Common Immediate Parent	Other variable expenses		—			(2,640	)		—
Foreign	Empresa de Distribución Eléctrica de Lima Norte S.A.A	Peru	Common Immediate Parent	Other services rendered		—			206,847			64,669
99.573.910-0	Chilectra Inversud S.A.	Chile	Common Immediate Parent	Other operating income		—			16			126
99.573.910-0	Chilectra Inversud S.A.	Chile	Common Immediate Parent	Other financial income		—			139,799			—
99.573.910-0	Chilectra Inversud S.A.	Chile	Common Immediate Parent	Other financial expenses		(645,276	)		(16,271	)		—
Foreign	Endesa Cemsa S.A.	Argentina	Associate	Electricity tolls		—			—			(6,577	)
Foreign	Endesa Cemsa S.A.	Argentina	Associate	Other fixed operating expenses		—			(268,631	)		(253,900	)
76.126.507-5	Parque Eolico Talinay Oriente SA	Chile	Common Immediate Parent	Energy purchases		(5,141,912	)		(1,148,277	)		—
				Total		(222,683,700	)		(164,032,471	)		(278,997,617	)

F-167

(1) See Notes 2.4.1, 5 and 14.

Transfers of short-term funds between related companies are treated as current accounts changes, with variable interest rates based on market conditions used for the monthly balance. The resulting receivable or payable balances are usually at 30 days term, with automatic rollover for the same periods and amortization in line with cash flows.

10.2 Board of Directors and Key management personnel

Once Enersis Chile S.A. is formed, its Board of Directors will initially consist of seven members who will be elected for an interim term at an Extraordinary Shareholders’ Meeting (“ESM”) to be held on December 18, 2015 to hold office until the first Ordinary Shareholders’ Meeting (“OSM”) to be held in April 2016. At the 2016 OSM, the entire Board of Directors consisting of seven members will be elected to a three-year term. Following the end of their term, they may be re-elected or replaced. If a vacancy occurs in the interim, the Board of Directors will elect a temporary director to fill the vacancy until the next OSM, at which time the entire Board of Directors will be elected to new three-year terms. Its Executive Officers will be appointed by the Board of Directors and hold office at the discretion of the Board.

10.3 Compensation plans linked to share price

There are no compensation plans linked to share price.

11. INVENTORIES

The detail of inventories as of December 31, 2014 and 2013 and January 1, 2013, is as follows:

Classes of Inventories	Balance at
	12-31-2014 ThCh$		12-31-2013 ThCh$		1-1-2013 ThCh$
Supplies for Production		22,295,599		10,561,168		23,746,835
Gas		1,407,284		—		—
Oil		3,734,834		1,630,489		3,993,634
Coal		17,153,480		8,930,679		19,753,201
Other inventories (*)		21,382,280		11,453,856		12,076,060
Total		43,677,878		22,015,024		35,822,895
Detail of other inventories
(*) Other inventories		21,382,280		11,453,856		12,076,060
Supplies for projects and spare parts		16,747,706		4,101,796		6,307,714
Electrical materials		4,634,574		7,352,060		5,768,346

There are no inventories pledged as security for liabilities.

For the years ended December 31, 2014 and 2013 raw materials and consumables recognized as fuel expenses were ThCh$305,480,260 and ThCh$211,612,174. See Note 28.

As of December 31, 2014 and 2013 and January 1, 2013, no inventories have been written down due to obsolescence.

F-168

12. TAX RECEIVABLES AND PAYABLES

The detail of current tax receivables as of December 31, 2014 and 2013 and January 1, 2013, is as follows:

Tax Receivables	Balance at
	12-31-2014 ThCh$		12-31-2013 ThCh$		1-1-2013 ThCh$
Monthly provisional tax payments		14,510,732		50,601,027		39,436,319
Tax credit for absorbed profits		9,993,425		23,936,341		41,296,507
Tax credit for training expenses		240,800		241,998		183,498
Tax credit for dividends abroad		20,903,182		18,668,757		—
VAT credit		—		59,912,201		66,250,388
Other		—		23,174		1,007,463
Total		45,648,139		153,383,498		148,174,175

The detail of current tax payables as of December 31, 2014 and 2013 and January 1, 2013, is as follows:

Tax Payables	Balance at
	12-31-2014 ThCh$		12-31-2013 ThCh$		1-1-2013 ThCh$
Income tax		38,357,866		59,433,519		30,073,926
Total		38,357,866		59,433,519		30,073,926

13. NON-CURRENT ASSETS OR GROUPS OF ASSETS FOR DISPOSAL CLASSIFIED AS HELD FOR SALE

In December 2014, Empresa Nacional de Electricidad S.A. and its subsidiary Compañía Eléctrica de Tarapacá SA signed a contract to sell all their shares in Sociedad Concesionaria Túnel El Melón S.A. to Temsa Private Investment Fund. Such contract established a number of conditions, which were not fulfilled at the end of 2014, preventing the closure of the sale. The sale was finalized on January 9, 2015.

Túnel El Melón S.A is a private corporation whose purpose is the construction, maintenance and operation of the public work called the El Melón Tunnel and the provision of ancillary services authorized by the Ministry of Public Works (MOP for its Spanish acronym).

El Melón Tunnel is an alternative route to the road that climbs the El Melon pass, which is located between 126 and 132 kilometers north of Santiago on Route 5. This is the main highway linking the country from Arica to Puerto Montt.

As described in Note 3.k), non-current assets and groups of assets held for sale have been recorded at the lower of their carrying amount and fair value less costs of disposal.

F-169

The main items of assets, liabilities and cash flows held for sale as of December 31, 2014 are as follows:

	Balance 12/31/2014
	ThCh$
CURRENT ASSETS
Cash and cash equivalents		29,702
Other current non-financial assets		81,275
Trade and other current receivables		758,645
Current tax assets		1,400
TOTAL CURRENT ASSETS		871,022
NON-CURRENT ASSETS
Intangible assets other than goodwill		4,404,615
Property, plant and equipment		81,432
Deferred tax assets		2,621,894
TOTAL NON-CURRENT ASSETS		7,107,941
TOTAL ASSETS		7,978,963
CURRENT LIABILITIES
Other current financial liabilities		3,072,179
Trade and other current payables		495,235
Other current non-financial liabilities		131,030
TOTAL CURRENT LIABILITIES		3,698,444
NON-CURRENT LIABILITIES
Other non-current financial liabilities		1,660,254
Non-current provisions for employee benefits		102,423
Other non-current non-financial liabilities		27,026
TOTAL NON-CURRENT LIABILITIES		1,789,703
TOTAL LIABILITIES		5,488,147

	Balance 12/31/2014
	ThCh$
Summary of net cash flow
Net cash flows from (used in) operating activities		9,045,775
Net cash flows from (used in) investment activities		(5,604,740	)
Net cash flows from (used in) financing activities		(3,450,774	)
Net increase (decrease) in cash and cash equivalents before effect of exchange rate changes		(9,739	)
Effect of exchange rate changes on cash and cash equivalents		—
Net increase (decrease) in cash and cash equivalents		(9,739	)
Cash and cash equivalents at beginning of period		39,440
Cash and cash equivalents at end of period		29,702

F-170

14. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

14.1. Investments accounted for using the equity method

a. The following tables present the changes in investments in combined associates and joint ventures accounted for using the equity method as of December 31, 2014 and 2013 and January 1, 2013:

Taxpayer ID Number	Changes in Investments in Combined Associates	Relationship	Country		Currency	Ownership Interest			Balance at 01-01-2014 ThCh$		Additions ThCh$		Share of Profit (Loss) ThCh$			Dividends Declared ThCh$			Foreign Currency Translation ThCh$		Other Comprehensive Income ThCh$		Other Increase (Decrease) ThCh$			Balance at 12-31-2014 ThCh$		Negative Equity Provision ThCh$			Balance at 12-31-2014 ThCh$
96.806.130-5	Electrogas S.A.	Associate		Chile	U.S. dollar		42.50	%		9,682,324		—		4,456,124			(4,239,280	)		847,016		31,475		—			10,777,659		—			10,777,659
76.788.080-4	GNL Quintero S.A.	Associate		Chile	U.S. dollar		20.00	%		4,797,508		—		3,541,883			(6,897,599	)		311,747		13,445,396		—			15,198,935		—			15,198,935
76.418.940-K	GNL Chile S.A.	Associate		Chile	U.S. dollar		33.33	%		559,615		—		1,099,143			—			159,410		—		—			1,818,168		—			1,818,168
76.652.400-1	Centrales Hidroeléctricas De Aysén S.A. (2)	Joint Venture		Chile	Chilean peso		51.00	%		69,684,864		3,315,000		(66,855,307	)		—			—		—		—			6,144,557		—			6,144,557
77.017.930-0	Transmisora Eléctrica de Quillota Ltda.	Joint Venture		Chile	Chilean peso		50.00	%		6,073,897		—		352,107			—			—		—		—			6,426,004		—			6,426,004
76.014.570-K	Inversiones GasAtacama Holding Ltda. (1)	Joint Venture		Chile	U.S. dollar		50.00	%		123,627,968		—		3,053,468			—			8,919,246		—		(135,600,682	)		—		—			—
							TOTAL			214,426,176		3,315,000		(54,352,582	)		(11,136,879	)		10,237,419		13,476,871		(135,600,682	)		40,365,323		—			40,365,323
Taxpayer ID Number	Changes in Investments in Combined Associates	Relationship	Country		Currency	Ownership Interest			Balance at 01-01-2013 ThCh$		Additions ThCh$		Share of Profit (Loss) ThCh$			Dividends Declared ThCh$			Foreign Currency Translation ThCh$		Other Comprehensive Income ThCh$		Other Increase (Decrease) ThCh$			Balance at 12-31-2013 ThCh$		Negative Equity Provision ThCh$			Balance at 12-31-2013 ThCh$
96.806.130-5	Electrogas S.A.	Associate		Chile	U.S. dollar		42.50	%		9,030,441		—		4,186,294			(5,080,897	)		769,156		777,330		—			9,682,324		—			9,682,324
76.788.080-4	GNL Quintero S.A.	Associate		Chile	U.S. dollar		20.00	%		—		—		4,914,871			(3,088,495	)		36,052		7,922,262		—			9,784,690		(4,987,182	)		4,797,508
76.418.940-K	GNL Chile S.A.	Associate		Chile	U.S. dollar		33.33	%		376,835		—		137,691			—			45,089		—		—			559,615		—			559,615
76.652.400-1	Centrales Hidroeléctricas De Aysén S.A.	Joint Venture		Chile	Chilean peso		51.00	%		66,894,760		5,084,699		(2,294,595	)		—			—		—		—			69,684,864		—			69,684,864
77.017.930-0	Transmisora Eléctrica de Quillota Ltda.	Joint Venture		Chile	Chilean peso		50.00	%		5,710,960		—		362,937			—			—		—		—			6,073,897		—			6,073,897
76.014.570-K	Inversiones GasAtacama Holding Ltda.	Joint Venture		Chile	U.S. dollar		50.00	%		96,207,755		—		17,002,146			—			10,418,067		—		—			123,627,968		—			123,627,968
							TOTAL			178,220,751		5,084,699		24,309,344			(8,169,392	)		11,268,364		8,699,592		—			219,413,358		(4,987,182	)		214,426,176

(1) In April 2014, the company Inversiones GasAtacama Holding Ltda. became a subsidiary of the Combined Group (see Notes 2.4.1 and 5).

(2) The loss recognized during 2014, includes an impairment loss of ThCh$69,066,857 as a result of uncertainty about the recoverability of this investment.

b. Additional financial information on investments in associated companies and joint ventures

14.2. Investments with significant influence

The following tables show financial information as of December 31, 2014 and 2013 from the financial statements of the investments in associates where the Combined Group has significant influence:

Investments with Significant Influence	12-31-2014
	% Ownership Interest Direct / Indirect			Current Assets ThCh$		Non-current Assets ThCh$		Current Liabilities ThCh$		Non-current Liabilities ThCh$		Revenues ThCh$		Expenses ThCh$			Profit (Loss) ThCh$		Other Comprehensive Income ThCh$		Comprehensive Income ThCh$
GNL Chile S.A		33.33	%		73,425,419		81,983		64,329,604		3,723,224		732,138,386		(728,840,589	)		3,297,797		478,277		3,776,074
GNL Quintero S.A.		20.00	%		98,325,654		597,812,711		20,036,542		600,107,009		117,435,890		(99,726,467	)		17,709,423		68,785,714		86,495,137
Electrogas S.A.		42.50	%		6,085,889		43,289,210		10,076,915		13,938,983		19,635,597		(9,150,599	)		10,484,998		2,067,038		12,552,036
Investments with Significant Influence	12-31-2013
	% Ownership Interest Direct / Indirect			Current Assets ThCh$		Non-current assets ThCh$		Current Liabilities ThCh$		Non-current Liabilities ThCh$		Revenues ThCh$		Expenses ThCh$			Profit (Loss) ThCh$		Other Comprehensive Income ThCh$		Comprehensive Income ThCh$
GNL Chile S.A.		33.33	%		82,737,334		79,263		78,005,985		3,131,599		538,715,428		(538,302,314	)		413,114		135,281		548,395
GNL Quintero S.A.		20.00	%		88,131,062		566,951,431		34,063,764		597,031,096		100,431,648		(75,857,214	)		24,574,434		39,791,400		64,365,834
Electrogas S.A.		42.50	%		4,624,089		39,891,362		9,624,463		12,109,047		17,591,544		(7,741,439	)		9,850,105		3,638,791		13,488,896

F-171

Appendix 3 to these combined financial statements provides information on the main activities of our associates and the ownership interest that the Combined Group holds in them.

None of our associates have published price quotations.

14.3. Joint ventures

The following tables present information from the financial statements as of December 31, 2014 and 2013 and January 1, 2013 on the main joint ventures:

	Centrales Hidroeléctricas de Aysén S.A.									Transmisora Eléctrica de Quillota Ltda.									Inversiones Gas Atacama Holding Ltda. (*)
% Ownership	51.0% 12/31/2014 ThCh$			51.0% 12/31/2013 ThCh$			51.0% 1/1/2013 ThCh$			50.0% 12/31/2014 ThCh$			50.0% 12/31/2013 ThCh$			50.0% 1/1/2013 ThCh$			50.0% 12/31/2014 ThCh$		50.0% 12/31/2013 ThCh$			50.0% 1/1/2013 ThCh$
Total current assets		485,966			9,596,488			10,081,574			4,426,445			3,950,498			3,273,653			—		176,292,080			111,109,274
Total non-current assets		15,026,706			131,270,190			127,061,491			11,420,593			10,237,702			9,921,635			—		295,704,711			256,741,087
Total current liabilities		3,419,214			4,049,634			5,728,373			1,159,095			670,215			503,949			—		63,483,879			49,340,104
Total non-current liabilities		45,348			180,059			248,465			1,835,937			1,370,193			1,269,420			—		44,840,436			56,704,587
Cash and cash equivalents		319,670			1,727,261			2,754,590			3,930,814			3,450,144			2,904,898			—		108,934,464			76,706,833
Other current financial liabilities		—			—			—			—			—			—			—		14,865,354			9,732,430
Other non-current financial liabilities		—			—			—			—			—			—			—		—			—
Revenues		—			—			—			2,672,950			2,394,408			2,265,866			—		176,517,866			119,376,747
Depreciation and amortization expense		(52,978	)		(69,316	)		(92,533	)		(738,927	)		(680,519	)		(686,931	)		—		(11,145,909	)		(10,239,012	)
Impairment losses		(126,657,707	)		—			—			—			—			—			—		—			—
Interest income		479,518			121,509			255,431			88,597			134,631			94,083			—		1,040,933			996,160
Interest expense		—			78,059			(62,115	)		—			—			—			—		(1,575,774	)		(1,713,723	)
Income tax expense		—			1,333,808			(6,222,845	)		(671,727	)		(124,757	)		(354,165	)		—		(9,908,686	)		(12,188,867	)
Profit (loss)		(131,088,876	)		(4,499,239	)		(1,140,074	)		704,214			725,873			689,429			—		34,042,459			37,132,872
Other comprehensive income		—			—			—			—			—			—			—		—			—
Comprehensive income		(131,088,876	)		(4,499,239	)		(1,140,074	)		704,214			725,873			689,429			—		34,042,459l			37,132,872

(*) See Notes 2.4.1 and 5.

c. There are no significant commitments and contingencies, or restrictions on funds transfers to its owners in associates and joint ventures.

15. INTANGIBLE ASSETS OTHER THAN GOODWILL

The following table presents intangible assets as of December 31, 2014 and 2013 and January 1, 2013:

Intangible Assets, Net	12-31-2014 ThCh$		12-31-2013 ThCh$		1-1-2013 ThCh$
Intangible Assets, Net		36,525,522		37,570,805		37,962,229
Easements and water rights		14,692,984		14,517,212		14,523,007
Concessions		—		6,951,508		9,478,468
Computer software		21,651,862		15,991,138		13,845,449
Other identifiable intangible assets		180,676		110,947		115,305

F-172

Intangible Assets, Gross	12-31-2014 ThCh$			12-31-2013 ThCh$			1-1-2013 ThCh$
Intangible Assets, Gross		82,119,207			111,173,564			105,860,908
Easements and water rights		17,106,353			16,930,581			16,932,126
Concessions		—			39,246,752			39,246,752
Computer software		58,579,846			48,684,070			43,369,870
Other identifiable intangible assets		6,433,008			6,312,161			6,312,160
Intangible Assets, Amortization and Impairment	12-31-2014 ThCh$			12-31-2013 ThCh$			1-1-2013 ThCh$
Accumulated Amortization and Impairment, Total		(45,593,685	)		(73,602,759	)		(67,898,679	)
Identifiable intangible assets		(45,593,685	)		(73,602,759	)		(67,898,679	)
Easements and water rights		(2,413,369	)		(2,413,369	)		(2,409,119	)
Concessions		—			(32,295,244	)		(29,768,284	)
Computer software		(36,927,984	)		(32,692,932	)		(29,524,421	)
Other identifiable intangible assets		(6,252,332	)		(6,201,214	)		(6,196,855	)

The reconciliations of the carrying amounts of intangible assets during the years ended December 31, 2014 and 2013 are as follows:

Changes in Intangible Assets	Easements				Concessions			Computer Software			Other Identifiable Intangible Assets, Net			Intangibles Assets, Net
	ThCh$			��	ThCh$			ThCh$			ThCh$			ThCh$
Opening balance January 1, 2014		14,517,212				6,951,508			15,991,138			110,947			37,570,805
Changes in identifiable intangible assets
Increases (decreases) other than from business combinations		(19,567	)			—			8,568,249			—			8,548,682
Increase (decrease) from exchange differences, net		—				—			6,303			4,577			10,880
Amortization (1)		—				(2,546,894	)		(3,400,009	)		(7,207	)		(5,954,110	)
Increases (decreases) from transfers and other changes		195,339				1			489,030			72,359			756,729
Increases (decreases) from transfers		195,339				1			(195,339	)		(1	)		—
Increases (decreases) from other changes		—				—			684,369			72,360			756,729
Disposals and removals from service		—				—			(2,849	)		—			(2,849	)
Disposals		—				—			—			—
Removals from service		—				—			(2,849	)		—			(2,849	)
Decreases classified as held for sale		—				—			—			—			—
Other increases (decreases)		—				(4,404,615	)		—			—			(4,404,615	)
Total changes in identifiable intangible assets		175,772				(6,951,508	)		5,660,724			69,729			(1,045,283	)
Closing balance December 31, 2014		14,692,984				—			21,651,862			180,676			36,525,522

F-173

Changes in Intangible Assets	Easements			Concessions			Computer Software			Other Identifiable Intangible Assets, Net			Activos Intangibles, Neto
	ThCh$			ThCh$			ThCh$			ThCh$			ThCh$
Opening balance January 1, 2013		14,523,007			9,478,468			13,845,449			115,305			37,962,229
Changes in identifiable intangible assets
Increases other than from business combinations		(1,547	)		—			5,295,240			—			5,293,693
Acquisitions through business combinations		—			—			—			—			—
Increase (decrease) from exchange differences, net		—			—			—			—			—
Amortization (1)		(363	)		(2,526,959	)		(3,220,451	)		(3,269	)		(5,751,042	)
Impairment losses recognized in profit or loss		—			—			—			—			—
Increases (decreases) from transfers and other changes		(43,947	)		—			—			43,947			—
Increases (decreases) from transfers		—			—			—			—			—
Increases (decreases) from other changes		(43,947	)		—			—			43,947			—
Disposals and removals from service		—			—			—			—			—
Disposals		—												—
Removals from service		—			—			—			—			—
Decreases classified as held for sale		—			—									—
Other increases (decreases)		40,062			(1	)		70,900			(45,036	)		65,925
Total changes in identifiable intangible assets		(5,795	)		(2,526,960	)		2,145,689			(4,358	)		(391,424	)
Closing balance December 31, 2013		14,517,212			6,951,508			15,991,138			110,947			37,570,805

(1) See Note 30.

According to Enersis management’s estimates and projections, the expected future cash flows attributable to intangible assets allow the recovery of the carrying amount of these assets recorded as of December 31, 2014 (See Note 3.e).

16. GOODWILL

The following table shows goodwill by the Cash-Generating Unit or group of Cash-Generating Units to which it belongs and changes as of December 31, 2014 and 2013 and January 1, 2013:

Company	Cash Generating Unit	Opening Balance 1/1/2014 ThCh$		Increases (decreases)		Foreign Currency Translation ThCh$		Closing Balance 12/31/2014 ThCh$
Empresa Eléctrica Colina Ltda.	Empresa Eléctrica Colina Ltda.		2,240,478		—		—		2,240,478
Compañía Eléctrica Tarapaca S.A.	Generación Chile		4,656,105		—		—		4,656,105
Chilectra S.A.	Chilectra S.A.		128,374,362		—		—		128,374,362
Empresa Nacional de Electricidad S.A	Generación Chile		731,782,459		—		—		731,782,459
Inversiones GasAtacama Holding Ltda. (2)	Inversiones GasAtacama Holding		—		18,737,737		1,466,514		20,204,251
Total			867,053,404		18,737,737		1,466,514		887,257,655

Company	Cash Generating Unit	Opening Balance 1/1/2013 ThCh$		Transfers from Mergers			Foreign Currency Translation ThCh$		Closing Balance 12/31/2013 ThCh$
Empresa Eléctrica Colina Ltda.	Empresa Eléctrica Colina Ltda.		2,240,478		—			—		2,240,478
Compañía Eléctrica San Isidro S.A. (1)			4,656,105		(4,656,105	)		—		—
Compañía Eléctrica Tarapacá S.A. (1)	Generación Chile		—		4,656,105			—		4,656,105
Chilectra S.A.	Chilectra S.A.		128,374,362		—			—		128,374,362
Empresa Nacional de Electricidad S.A	Generación Chile		731,782,459		—			—		731,782,459
Total			867,053,404		—			—		867,053,404

(1) Empresa Eléctrica Pangue S.A. was merged with Compañía Eléctrica San Isidro S.A. on May 1, 2012; it is the latter company that legally continues to exist. Compañía Eléctrica San Isidro S.A. was merged with Endesa Eco S.A. on September 1, 2013; it is the latter company that legally continues to exist. Endesa Eco S.A. was merged with Compañía Eléctrica Tarapacá S.A. on November 1, 2013; it is the latter company that legally continues to exist.

(2) See Notes 2.4.1 and 5.

F-174

According to the Combined Group management’s estimates and projections, the expected future cash flows projections attributable to the Cash-Generating Units or groups of Cash-Generating Units, to which the acquired goodwill has been allocated, allow recovery of its carrying value as of December 31, 2014 (See Note 3.e).

The origin of the goodwill is detailed below:

1.- Empresa Eléctrica de Colina Ltda.

On September 30, 1996, Chilectra S.A. acquired 100% of the company Empresa Eléctrica de Colina Ltda. from the investment company Saint Thomas S.A., which is neither directly nor indirectly related to Chilectra S.A.

2.- Empresa Eléctrica Pangue S.A.

On July 12, 2002, Endesa Chile acquired 2.51% of the shares of Empresa Eléctrica Pangue S.A. through a put option held by the minority shareholder Internacional Finance Corporation (IFC).

On May 2, 2012, Empresa Eléctrica Pangue S.A. merged with Compañía Eléctrica San Isidro S.A.; it is the latter company that legally continues to exist.

3.- Compañía Eléctrica San Isidro S.A.

On August 11, 2005, Endesa Chile bought the shares of the company Inversiones Lo Venecia Ltda., whose only asset was a 25% interest in the company San Isidro S.A. (minority shareholder purchase).

4.- Chilectra S.A.

In November 2000, Enersis S.A. purchased an additional 25.4% interest in Chilectra S.A. through a purchasing power of attorney in a public bidding process, reaching a 99.99% stake in the company.

5.- Empresa Nacional de Electricidad S.A.

On May 11, 1999, Enersis S.A. acquired an additional 35% in Endesa Chile in a public bidding process on the Santiago Stock Exchange and by buying shares in the U.S. (30% and 5%, respectively), reaching a 60% interest in the generation company.

6.- Inversiones GasAtacama Holding Limitada.

On April 22, 2014, Endesa Chile acquired the 50% interest in Inversiones GasAtacama Holding Limitada that was owned at that time by Southern Cross Latin America Private Equity Fund III L.P (see Notes 2.4.1 and 5).

F-175

17. PROPERTY, PLANT AND EQUIPMENT

The following table shows property, plant and equipment as of December 31, 2014 and 2013 and January 1, 2013:

Classes of Property, Plant and Equipment, Net	12-31-2014 ThCh$			12-31-2013 ThCh$			1-1-2013 ThCh$
Property, Plant and Equipment, Net		3,283,760,776			2,880,470,635			2,810,746,294
Construction in progress		526,367,579			425,836,637			306,937,371
Land		61,050,488			57,582,247			51,617,936
Buildings		10,149,650			9,971,705			10,139,645
Plant and equipment		2,626,471,522			2,348,545,639			2,403,461,358
Fixtures and fittings		38,649,831			16,608,442			15,809,761
Other property, plant and equipment under financial lease		21,071,706			21,925,965			22,780,223
Classes of Property, Plant and Equipment, Gross	12-31-2014 ThCh$			12-31-2013 ThCh$			1-1-2013 ThCh$
Property, Plant and Equipment, Gross		6,080,079,331			5,394,224,952			5,213,376,199
Construction in progress		526,367,579			425,836,637			306,937,371
Land		61,050,488			57,582,247			51,617,936
Buildings		20,219,104			19,559,422			19,492,672
Plant and equipment		5,362,568,353			4,813,576,765			4,757,182,529
Fixtures and fittings		81,113,776			48,909,849			49,385,660
Other property, plant and equipment under financial lease		28,760,031			28,760,032			28,760,031
Classes of Accumulated Depreciation and Impairment in Property, Plant and Equipment	12-31-2014 ThCh$			12-31-2013 ThCh$			1-1-2013 ThCh$
Total Accumulated Depreciation and Impairment in Property, Plant and Equipment		(2,796,318,555	)		(2,513,754,317	)		(2,402,629,905	)
Buildings		(10,069,454	)		(9,587,717	)		(9,353,027	)
Plant and equipment		(2,736,096,831	)		(2,465,031,126	)		(2,353,721,171	)
Fixtures and fittings		(42,463,945	)		(32,301,407	)		(33,575,899	)
Other property, plant and equipment under financial lease		(7,688,325	)		(6,834,067	)		(5,979,808	)

The detail and changes in property, plant, and equipment during the years ended December 31, 2014 and 2013 are as follows:

Changes in 2014		Construction in Progress ThCh$			Land ThCh$			Buildings, Net ThCh$			Plant and Equipment, Net ThCh$			Fixtures and Fittings, Net ThCh$			Other Property, Plant and Equipment under Finance Lease, Net ThCh$			Property, Plant and Equipment, Net ThCh$
Opening balance January 1, 2014			425,836,637			57,582,247			9,971,705			2,348,545,639			16,608,442			21,925,965			2,880,470,635
	Increases other than from business combinations		318,751,963			—			—			3,988			1,796,610			—			320,552,561
	Acquisitions through business combinations		10,802,165			3,216,432			—			171,934,311			13,707,483			—			199,660,391
	Increases (decreases) from exchange differences, net		1,690,772			466,822			—			33,352,192			1,553,738			—			37,063,524
	Depreciation (1)		—			—			(481,737	)		(118,822,062	)		(2,324,987	)		(854,258	)		(122,483,044	)
	Impairment losses recognized in profit or loss (1)		—			—			—			(12,529,820	)		—			—			(12,529,820	)
	Increases (decreases) from transfers and other changes		(227,696,726	)		74			659,682			224,759,203			2,277,767			—			—
	Increases (decreases) from transfers		(227,696,726	)		74			659,682			224,759,203			2,277,767			—			—
	Increases (decreases) from transfers from constructions in progress		(227,696,726	)		74			659,682			224,759,203			2,277,767			—			—
	Increases (decreases) from other changes																				—
	Disposals and removals from service		—			—			—			(392,778	)		(35,900	)		—			(428,678	)
	Disposals		—			—			—			—			—			—			—
	Removals		—			—			—			(392,778	)		(35,900	)		—			(428,678	)
	Other increases (decreases)		(3,017,232	)		(215,087	)		—			(636,920	)		5,066,678			(1	)		1,197,438
	Total changes		100,530,942			3,468,241			177,945			277,925,883			22,041,389			(854,259	)		403,290,141
Closing balance December 31, 2014			526,367,579			61,050,488			10,149,650			2,626,471,522			38,649,832			21,071,706			3,283,760,776

F-176

Changes in 2013		Construction in Progress ThCh$			Land ThCh$			Buildings, Net ThCh$			Plant and Equipment, Net ThCh$			Fixtures and Fittings, Net ThCh$			Other Property, Plant and Equipment under Finance Lease, Net ThCh$			Property, Plant and Equipment, Net ThCh$
Opening balance January 1, 2013			306,937,371			51,617,936			10,139,645			2,403,461,358			15,809,761			22,780,223			2,810,746,294
	Increases other than from business combinations		187,120,080			—			—			—			1,314,925			—			188,435,005
	Acquisitions through business combinations		—			—			—			—			—			—			—
	Increases (decreases) from exchange differences, net		—			—			—			—			—			—			—
	Depreciation (1)		—			—			(601,563	)		(109,506,089	)		(2,794,166	)		(854,258	)		(113,756,076	)
	Impairment losses recognized in profit or loss (1)		(272,181	)		—			—			—			—			—			(272,181	)
	Increases (decreases) from transfers and other changes		(66,461,341	)		(118,739	)		507,728			68,359,995			2,712,357			—			—
	Increases (decreases) from transfers		(66,461,341	)		(118,739	)		507,728			63,359,995			2,712,357			—			—
	Increases (decreases) from transfers from constructions in progress		(66,461,341	)		(118,739	)		507,728			63,359,995			2,712,357			—			—
	Increases (decreases) from other changes		—			—			—			—			—			—			—
	Disposals and removals from service		(1,459,819	)		(847,678	)		338,148			(3,581,803	)		(420,227	)		—			(5,971,379	)
	Disposals		—			—			—			—			—			—			—
	Removals		(1,459,819	)		(847,678	)		338,148			(3,581,803	)		(420,227	)		—			(5,971,379	)
	Other increases (decreases)		(27,473	)		6,930,728			(412,253	)		4,960,286			(14,208	)		—			11,437,080
	Total changes		118,899,266			5,964,311			(167,940	)		(54,915,719	)		798,681			(854,258	)		69,724,341
Closing balance December 31, 2013			425,836,637			57,582,247			9,971,705			2,348,545,639			16,608,442			21,925,965			2,880,470,635

(1) See Note 30.

Additional information on property, plant and equipment, net

a) Main investments

Major additions to property, plant and equipment are investments in operating plants and new projects amounting to ThCh$320,552,561 and ThCh$188,435,005 for the years ended December 31, 2014 and 2013, respectively. In the generation business the main investments include maintenance to plants of ThCh$253,740,453 and ThCh$128,049,150 for the years ended December 31, 2014 and 2013, respectively. In the distribution business major investments are network extensions and investments to optimize their operation, in order to improve the efficiency and quality of service, amounting to ThCh$62,680,946 and ThCh$52,898,690 for the years ended December 31, 2014 and 2013, respectively.

b) Finance leases

As of December 31, 2014 and 2013 and January 1, 2013, property, plant and equipment includes ThCh$21,071,706, ThCh$21,925,965 and ThCh$22,780,223, respectively, in leased assets classified as finance leases.

The present value of future lease payments derived from these finance leases is as follows:

	12-31-2014						12-31-2013						1-1-2013
	Gross ThCh$		Interest ThCh$		Present Value ThCh$		Gross ThCh$		Interest ThCh$		Present Value ThCh$		Gross ThCh$		Interest ThCh$		Present Value ThCh$
Less than one year		2,427,000		956,437		1,470,563		2,098,440		904,559		1,193,881		1,919,840		894,236		1,025,604
From one to five years		9,708,000		2,270,534		7,437,466		8,393,760		2,790,113		5,603,647		7,679,360		2,265,107		5,414,253
More than five years		11,601,579		1,386,142		10,215,437		12,129,434		1,198,490		10,930,944		13,016,927		2,211,594		10,805,333
Total		23,736,579		4,613,112		19,123,467		22,621,634		4,893,162		17,728,472		22,616,127		5,370,937		17,245,190

Leased assets primarily relate to a lease agreement for Electric Transmission Lines and Installations (Ralco-Charrúa 2X220 KV) entered into between Endesa Chile and Abengoa Chile S.A. The lease agreement has a 20-year maturity and bears interest at an annual rate of 6.5%.

c) Operating leases

The combined statements of income for the years ended December 31, 2014 and 2013 include ThCh$6,734,776 and ThCh$8,043,094, respectively, corresponding to operating lease contracts for material assets in operation.

F-177

As of December 31, 2014 and 2013 and January 1, 2013, the total future lease payments under those contracts are as follows:

	12-31-2014 ThCh$		12-31-2013 ThCh$		1-1-2013 ThCh$
Less than one year		8,566,303		13,045,665		10,000,006
From one to five years		16,634,394		19,887,638		10,459,805
More than five years		10,064,425		11,036,942		1,712,415
Total		35,265,122		43,970,245		22,172,226

d) Other information

i) As of December 31, 2014 and 2013 and January 1, 2013, the Combined Group had contractual commitments for the acquisition of property, plant and equipment amounting to ThCh$170,911,479, ThCh$80,459,620 and ThCh$15,067,890, respectively.

ii) As of December 31, 2014 and 2013 and January 1, 2013, the Combined Group does not have any property, plant and equipment pledged as security for liabilities (see Note 36).

iii) The Combined Group and its combined entities have insurance policies for all risks, earthquake and machinery breakdown and damages for business interruption with a €1,000 million limit in the case of generating companies and a €50 million limit for distribution companies, including business interruption coverage. Additionally, the Combined Group has Civil Liability insurance to meet claims from third parties with a €500 million limit. The insurance premiums associated with these policies are presented proportionally for each company in the caption “Prepaid expenses”.

iv) The situation of certain assets of our subsidiary Endesa Chile has changed, primarily works and infrastructure for facilities built to support power generation in the SIC grid in 1998, due primarily to the installation in the SIC of new thermoelectric plants, the arrival of LNG, and new projects that will be starting up soon. This has resulted in a new supply configuration for the upcoming years, in which it is expected that these facilities will not need to be used. Accordingly, in 2009, the Combined Group recognized an impairment loss of ThCh$43,999,600 for these assets, which is still in effect.

v) On October 16, 2012, Endesa Chile began the collection process on all of the bank performance bonds guaranteeing compliance with the works and correct, timely execution of these works as specified in the agreement “Bocamina Thermal Plant Expansion Project”, contract ACP-003.06. This is a turnkey project for a 350 MW coal-fired thermal generation plant (“the contract”) signed on July 25, 2007 between Empresa Nacional de Electricidad S.A. (“the owner”) and the consortium consisting of (i) the Chilean company Ingeniería y Construcción Tecnimont Chile y Compañía Limitada; (ii) the Italian company Tecnimont SpA; (iii) the Brazilian company Tecnimont do Brasil Construcao e Administracao de Projetos Ltda; (iv) the Slovakian company Slovenske Energeticke Strojarne a.s. (“SES”); and (v) the Chilean company Ingeniería y Construcción SES Chile Limitada; (all referred to collectively as “the Contractor” or “the Consortium”).

These performance bonds amounted to US$74,795,164.44 and UF 796,594.29 (approximately US$38,200,000). As of January 1, 2013 it was collected US$93,992,554 of these bonds and currently it is still pending to collect US$18,940,295, equivalent to ThCh$11,492,024 in local currency (see Note 36.3.6).

Collection made on these bank performance bonds reduced the cost overruns incurred by the company due to breach of contract; they were capitalized into the Project.

Together collecting on the bonds, Endesa Chile has reserved all of the rights conferred upon it under the Contract and applicable national legislation to demand complete, timely compliance with the obligations agreed to by the Contractor.

On October 17, 2012, Endesa Chile filed an arbitration request with the International Chamber of Arbitration of Paris in order to enforce the rights conferred upon it under the Contract.

F-178

vi) At the end of 2012, our subsidiary Compañía Eléctrica Tarapacá S.A. recognized an impairment loss for ThCh$12,578,098, to adjust the carrying amount of its Property, plant and equipment to their recoverable value (see Note 3.e).

vii) At the end of 2014, our subsidiary Endesa Chile recognized an impairment loss for ThCh$12,581,947 related to the Punta Alcalde project. This impairment loss arises because the current definition of the project is not fully aligned with the strategy that the Combined Group is reformulating, particularly with regard to technological leadership, and to community and environmental sustainability. Endesa Chile has decided to suspend the project as its profitability is still unclear (see Note 3.e).

18. INVESTMENT PROPERTY

The detail and changes in investment property during the years ended December 31, 2014 and 2013, are as follows:

	Investment Properties, Gross			Accumulated Depreciation, Amortization and Impairment			Investment Properties, Net
Investment Properties	ThCh$			ThCh$			ThCh$
Balance at January 1, 2013		51,003,011			(4,080,041	)		46,922,970
Additions		2,487,919			—			2,487,919
Disposals (1)		(6,443,325	)		2,127,925			(4,315,400	)
Depreciation expense		—			(59,078	)		(59,078	)
Impairment losses recognized in profit or loss		—			(159,362	)		(159,362	)
Balance at December 31, 2013		47,047,605			(2,170,556	)		44,877,049
Additions		1,463,242			—			1,463,242
Land sales (1)		(1,806,675	)		—			(1,806,675	)
Disposals related to the sale of combined entities (2)		(36,040,698	)		—			(36,040,698	)
Depreciation expense		—			(30,483	)		(30,483	)
Impairment losses reversed, recognized in profit or loss		—			52,127			52,127
Balance at December 31, 2014		10,663,474			(2,148,912	)		8,514,562

(1) The sale prices of investment properties disposed of years 2014 and 2013 were ThCh$9,363,249 and ThCh$16,510,931, respectively.

(2) See Note 32.

-Fair value measurement and hierarchy

As of December 31, 2014, the fair value of the Combined Group’s investment properties was ThCh$12,272,521 which was determined using independent appraisals.

The fair value measurement for these investment properties was categorized as Level 2.

For the years ended December 31, 2014 and 2013, the detail of income and expenses from investment properties is as follows:

	For the years ended
	12-31-2014			12-31-2013
Income and expense from investment properties	ThCh$			ThCh$
Rental income from investment properties		263,643			341,494
Income from the sale of investment properties (*)		9,363,249			16,510,931
Direct operating expense from investment properties generating rental income		(328,590	)		(192,963	)
Direct operating expense from investment properties not generating rental income (*)		(1,806,675	)		(4,315,400	)
Total		7,491,627			12,344,062

(*) See Note 32.

F-179

The Combined Group has no repair, maintenance, acquisition, construction or development agreements that represent future obligations for the Combined Group as of December 31, 2014 (ThCh$971,776 as of December 31, 2013 and ThCh$0 as of January 1, 2013).

The Combined Group has insurance policies to cover operational risks of its investment properties, as well as to cover legal claims against the Combined Group that could potentially arise from exercising its business activity. Management considers that the insurance policy coverage is sufficient against the risks involved.

19. DEFERRED TAXES

a. The origination and changes in deferred tax assets and liabilities as of December 31, 2014 and 2013 and January 1, 2013 are as follows:

Deferred Tax Assets		Deferred Tax Assets Relating to																		Deferred Tax Assets
		Accumulated Depreciation			Provisions			Post-employment benefit obligations			Revaluation of financial instruments			Tax Loss Carryforwards			Other
Opening balance January 1, 2014			1,409,000			2,471,333			—			—			1,710,288			5,660,926			11,251,547
	Increase (decrease) in profit or loss		(1,110,934	)		3,894,698			(1,218,281	)		(1,716	)		6,297,437			6,750,316			14,611,520
	Increase (decrease) in other comprehensive income		—			—			4,488,450			1,716			—			(1,084	)		4,489,082
	Acquisitions through business combinations (1)		—			879,716			—			—			537,932			974,883			2,392,531
	Disinvestments through selling businesses (1)		(107,241	)		(34,403	)		—			—			(329,845	)		(5,816,292	)		(6,287,781	)
	Foreign currency translation		—			361,135			—			—			—			155,705			516,840
	Transfers to (from) Non-current assets and groups held for sale		—			(29,583	)		(1,761	)		—			(1,448,281	)		(1,142,270	)		(2,621,895	)
	Other increase (decreases)		(2	)		(1,744,590	)		(3,106,043	)		—			(1,915,692	)		(4,620,422	)		(11,386,749	)
Closing balance December 31, 2014			190,823			5,798,306			162,365			—			4,851,839			1,961,762			12,965,095

Deferred Tax Assets		Deferred Tax Assets Relating to																	Deferred Tax Assets
		Accumulated Depreciation			Provisions			Post-employment benefit obligations			Revaluation of financial instruments			Tax Loss Carryforwards			Other
Opening balance January 1, 2013			3,366,028			2,489,026			(1	)		(1	)		8,635,197			3,554,687		18,044,936
	Increase (decrease) in profit or loss		(205,618	)		1,678,133			(358,834	)		—			(14,647,929	)		2,506		(13,531,742	)
	Increase (decrease) in other comprehensive income		—			—			490,159			—			5,010,578			—		5,500,737
	Foreign currency translation		2			—			—			—			—			—		2
	Other increases (decreases)		(1,751,412	)		(1,695,826	)		(131,324	)		1			2,712,442			2,103,733		1,237,614
Closing balance December 31, 2013			1,409,000			2,471,333			—			—			1,710,288			5,660,926		11,251,547

Deferred Tax Liabilities		Deferred Tax Liabilities Relating to														Deferred Tax Liabilities
		Accumulated depreciation			Provisions		Post-employment benefit obligations			Revaluation of financial instruments			Other
Opening balance January 1, 2014			172,945,228			—		20,818			3,933,526			1,649			176,901,221
	Increase (decrease) in profit or loss		60,395,908			379		(457,558	)		(4,490,773	)		1,399,160			56,847,116
	Increase (decrease) in other comprehensive income		—			—		(20,511	)		557,247			378			537,114
	Acquisitions through business combinations		27,088,856			—		—			—			1,834,311			28,923,167
	Disinvestments through selling businesses		—			—		—			—			—			—
	Foreign currency translation		3,324,089			—		—			—			77,065			3,401,154
	Transfers to (from) Non-current assets and groups held for sale		—			—		—			—			—			—
	Other increase (decreases)		(10,758,834	)		—		473,749			—			(1,102,021	)		(11,387,106	)
Closing balance December 31, 2014			252,995,247			379		16,498			—			2,210,542			255,222,666

F-180

Deferred Tax Liabilities		Deferred Tax Liabilities Relating to														Deferred Tax Liabilities
		Accumulated depreciation			Provisions		Post-employment benefit obligations			Revaluation of financial instruments			Other
Opening balance January 1, 2013			179,912,972			—		17,080			5,224,632			2,157,060			187,311,744
	Increase (decrease) in profit or loss		(8,772,530	)		—		71,264			937,186			(2,031,600	)		(9,795,680	)
	Increase (decrease) in other comprehensive income		(476	)		—		(161,890	)		(2,228,292	)		22			(2,390,636	)
	Acquisitions through business combinations		—			—		—			—			—			—
	Disinvestments through selling businesses		—			—		—			—			—			—
	Foreign currency translation		—			—		—			—			—			—
	Other increases (decreases)		1,805,262			—		94,364			—			(123,833	)		1,775,793
Closing balance December 31, 2013			172,945,228			—		20,818			3,933,526			1,649			176,901,221

(1) See Note 2.4.1 and 5.

Recovery of deferred tax assets will depend on whether sufficient taxable profits will be obtain in the future. The Combined Group believes that the future profit projections for its combined entities will allow these assets to be recovered.

b. As of December 31, 2014 and 2013 and January 1, 2013, the Combined Group has unrecognized deferred tax assets related to tax loss carryforwards totaling ThCh$351,900, ThCh$611,400, and ThCh$1,691,200, respectively. See Note 3.o.

The Combined Group has unrecognized deferred tax liabilities for taxable temporary differences associated with investment in combined entities and joint ventures, as it is able to control the timing of the reversal of the temporary differences and considers that it is probable that such temporary differences will not reverse in the foreseeable future. As of December 31, 2014 and 2013 and January 1, 2013 , the aggregate amount of taxable temporary differences associated with investments in combined entities and joint ventures for which deferred tax liabilities have not been recognized totaled ThCh$426,167,022, ThCh$200,658,751 and ThCh$187,263,671, respectively.

Additionally, the Combined Group has not recognized deferred tax asset for deductible temporary differences which as of December 31, 2014 and 2013 and January 1, 2013 , totaled ThCh$966,314,793, ThCh$737,394,169 and ThCh$868,176,194, respectively, as it is not probable that sufficient future taxable profits exist to recover such temporary differences.

The Combined Group entities are potentially subject to income tax audits by the Chilean tax regulator and are limited to three tax years after which tax audits over those years can no longer be performed. Tax audits by nature are often complex and can require several years to complete. The tax years potentially subject to examination are 2012 through 2014.

Given the range of possible interpretations of tax standards, the results of any future inspections carried out by Chilean tax authority for the years subject to audit can give rise to tax liabilities that cannot currently be quantified objectively. Nevertheless, management estimates that the liabilities, if any, that may arise from such tax audits, would not significantly impact the Combined Group’s future results.

The effects of deferred tax on the components of other comprehensive income are as follows:

Effects of Deferred Tax on the Components of Other Comprehensive Income	Year ended December 31, 2014									Year ended December 31, 2013
	Amount Before Tax ThCh$			Income Tax Expense (Benefit) ThCh$			Amount After Tax ThCh$			Amount Before Tax			Income Tax Expense (Benefit)		Amount After Tax
										ThCh$			ThCh$		ThCh$
Available-for-sale financial assets		1,849			(1,462	)		387			(2,273	)		455		(1,818	)
Cash flow hedge		(131,355,881	)		31,585,153			(99,770,728	)		(70,928,723	)		10,955,996		(59,972,727	)
Share of other comprehensive income from associates and joint ventures accounted for using the equity method		13,476,871			—			13,476,871			8,699,592			—		8,699,592
Foreign currency translation		12,473,950			—			12,473,950			12,286,748			—		12,286,748
Actuarial gains(losses) on defined-benefit pension plans		(12,692,856	)		4,527,209			(8,165,647	)		(3,260,244	)		652,049		(2,608,195	)
Income tax related to components of other comprehensive income		(118,096,067	)		36,110,900			(81,985,167	)		(53,204,900	)		11,608,500		(41,596,400	)

F-181

c. In Chile, Law No. 20,780 was published in the Official Gazette on September 29, 2014. It changes the income tax system and other taxes, by replacing the current tax system in 2017 with two alternative tax systems: the attributed income system and partially integrated system.

This Law gradually increases the rate of income tax on corporate income. Thus, it will increase to 21% in 2014, to 22.5% in 2015 and to 24% in 2016. As from 2017 taxpayers choosing the attributed income system will be subject to a rate of 25%, while companies choosing the partially integrated system will be subject to a rate of 25.5% in 2017 and 27% in 2018.

Furthermore, this Law establishes that the partially integrated system will apply by default to open stock companies, unless a future Extraordinary Shareholders’ Meeting agrees to adopt the attributed income system.

The Combined Group assumes that, since an Extraordinary Shareholders’ Meeting has not agreed to adopt the alternative system, the partially integrated system applies by default. Therefore, changes in deferred tax assets and liabilities as a direct effect of the increase in the corporate income tax rate have been recognized in profit or loss. Specifically, as of December 31, 2014 the net charge against income was a loss of ThCh$66,669,816.

20. OTHER FINANCIAL LIABILITIES

The balances of other financial liabilities as of December 31, 2014 and 2013 and January 1, 2013 are as follows:

Other Financial Liabilities	12-31-2014				12-31-2013				1-1-2013
	Current ThCh$		Non-current ThCh$		Current ThCh$		Non-current ThCh$		Current ThCh$		Non-current ThCh$
Interest-bearing borrowings		143,170,408		743,672,174		123,125,951		574,924,355		217,822,784		646,439,270
Hedging derivatives (*)		667,153		28,176,011		1,280,496		—		91,276		3,214,525
Non-hedging derivatives (**)		2,526,798		6,286,982		164,983		—		—		—
Obligation for Túnel el Melón concession		—		—		2,692,424		4,479,251		2,442,849		7,027,434
Total		146,364,359		778,135,167		127,263,854		579,403,606		220,356,909		656,681,229

(*) See Note 22.2.a

(**) See Note 22.2.b

20.1 Interest-bearing borrowings

The detail of current and non-current interest-bearing borrowings as of December 31, 2014 and 2013 and January 1, 2013 is as follows:

Classes of Loans that Accrue Interest	12-31-2014				12-31-2013				1-1-2013
	Current ThCh$		Non-current ThCh$		Current ThCh$		Non-current ThCh$		Current ThCh$		Non-current ThCh$
Bank loans		1,008,956		—		106,492,963		858,299		1,547,154		97,967,390
Unsecured obligations		140,690,889		726,019,271		15,439,104		557,531,468		213,227,767		532,252,294
Secured obligations		—		—		—		—		—		—
Financial leases		1,470,563		17,652,903		1,193,884		16,534,588		1,025,604		16,219,586
Other obligations		—		—		—		—		2,022,260		—
Total		143,170,408		743,672,174		123,125,951		574,924,355		217,822,785		646,439,270

F-182

Bank loans by currency and contractual maturity as of December 31, 2014 and 2013 and January 1, 2013, are as follows:

Summary of bank loans by currency and maturity

Country	Currency	Nominal Interest Rate			Secured/ Unsecured		Current						Non-current
							Maturity				Total Current at 12/31/2014		Maturity										Total Non- current at 12/31/2014
							One to three months		Three to twelve months				One to two years		Two to three years		Three to four years		Four to five years		Over five years
							ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$
Chile	US$		5.98	%		Unsecured		—		1,007,362		1,007,362		—		—		—		—		—		—
Chile	Ch$		5.47	%		Unsecured		1,594		—		1,594		—		—		—		—		—		—
Total								1,594		1,007,362		1,008,956		—		—		—		—		—		—

Country	Currency	Nominal Interest Rate			Secured/ Unsecured		Current						Non-current
							Maturity				Total Current at 12/31/2013 ThCh$		Maturity										Total Non- current at 12/31/2013
							One to three months		Three to twelve months				One to two years		Two to three years		Three to four years		Four to five years		Over five years
							ThCh$		ThCh$				ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$
Chile	US$		2.29	%		Unsecured		404,070		106,087,171		106,491,241		858,299		—		—		—		—		858,299
Chile	Ch$		5.91	%		Unsecured		—		199		199		—		—		—		—		—		—
Chile	Ch$		5.00	%		Unsecured		1,519		—		1,519		—		—		—		—		—		—
Chile	Ch$		5.67	%		Unsecured		4		—		4		—		—		—		—		—		—
Total								405,593		106,087,370		106,492,963		858,299		—		—		—		—		858,299

Country	Currency	Nominal Interest Rate			Secured/ Unsecured		Current						Non-current
							Maturity				Total Current at 1/1/2013		Maturity										Total Non- current at 1/1/2013
							One to three months		Three to twelve months				One to two years		Two to three years		Three to four years		Four to five years		Over five years
							ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$
Chile	US$		1.76	%		Unsecured		354,739		1,191,983		1,546,722		97,182,141		785,249		—		—		—		97,967,390
Chile	Ch$		4.90	%		Unsecured		432		—		432		—		—		—		—		—		—
Total								355,171		1,191,983		1,547,154		97,182,141		785,249		—		—		—		97,967,390

Fair value measurement and hierarchy

The fair value of current and non-current bank borrowings as of December 31, 2014 and 2013 and January 1, 2013 totaled ThCh$1,027,794, ThCh$107,659,698, and ThCh$99,648,995, respectively. The fair value measurement of borrowings have been categorized as Level 2 (see Note 3.h).

F-183

– Identification of bank borrowings by company

Taxpayer ID Number	Company	Country		Taxpayer ID Number	Financial Institution	Country	Currency	Effective Interest Rate			Nominal Interest Rate			Amortization	December 31, 2014
															Current ThCh$						Non-Current ThCh$
															Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non- Current
96.800.570-7	Chilectra S.A.		Chile	0-E	Credit lines	Chile	Ch$		5.91	%		5.91	%	Otra		133		—		133		—		—		—		—		—		—
91.081.000-6	Endesa Chile S.A.		Chile	Foreign	B.N.P. Paribas	E.E.U.U.	US$		6.32	%		5.98	%	Semestral		—		1,007,362		1,007,362		—		—		—		—		—		—
91.081.000-6	Endesa Chile S.A.		Chile	97.004.000-5	Banco Santander	Chile	Ch$		6.00	%		6.00	%	Mensual		1,338		—		1,338		—		—		—		—		—		—
94.271.00-3	Enersis S.A.		Chile	97.004.000-5	Banco Santander Chile	Chile	Ch$		4.50	%		4.50	%	Al Vencimiento		123		—		123		—		—		—		—		—		—
						Total										1,594		1,007,362		1,008,956		—		—		—		—		—		—

Taxpayer ID Number	Company	Country		Taxpayer ID Number	Financial Institution	Country	Currency	Effective Interest Rate			Nominal Interest Rate			Amortization	December 31, 2013
															Current ThCh$						Non-Current ThCh$
															Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non- Current
96.800.570-7	Chilectra S.A.		Chile	0-E	Credit lines	Chile	Ch$		5.91	%		5.91	%	Other		198		—		198		—		—		—		—		—		—
91.081.000-6	Endesa S.A. (Chile)		Chile	Foreign	B.N.P. Paribas	U.S.A	US$		6.32	%		5.98	%	Semi-annually		—		883,679		883,679		858,299		—		—		—		—		858,299
91.081.000-6	Endesa S.A. (Chile)		Chile	Foreign	Banco Santander C.H. SA Chile	U.S.A	US$		1.69	%		1.01	%	At maturity		—		17,296,605		17,296,605		—		—		—		—		—		—
91.081.000-6	Endesa S.A. (Chile)		Chile	97.004.000-5	Banco Santander Chile (Linea Crédito)	Chile	Ch$		6.00	%		6.00	%	At maturity		—		176		176		—		—		—		—		—		—
91.081.000-6	Endesa S.A. (Chile)		Chile	Foreign	Export Development Corpotation Loan	U.S.A	US$		1.57	%		1.40	%	Semi-annually		380,556		375,606		756,162		—		—		—		—		—		—
91.081.000-6	Endesa S.A. (Chile)		Chile	Foreign	The Bank of Tokyo-Mitsubishi, Ltd.	U.S.A	US$		1.68	%		1.00	%	At maturity		—		17,296,605		17,296,605		—		—		—		—		—		—
91.081.000-6	Endesa S.A. (Chile)		Chile	Foreign	Scotiabank & Trust Cayman Ltd	Cayman Islands	US$		1.68	%		1.00	%	At maturity		23,316		26,206,977		26,230,293		—		—		—		—		—		—
91.081.000-6	Endesa S.A. (Chile)		Chile	Foreign	Bank Of America	U.S.A	US$		1.66	%		1.03	%	At maturity		—		—		—		—		—		—		—		—		—
91.081.000-6	Endesa S.A. (Chile)		Chile	Foreign	Mercantil Commercebank	U.S.A	US$		1.68	%		1.00	%	At maturity		—		10,482,791		10,482,791		—		—		—		—		—		—
91.081.000-6	Endesa S.A. (Chile)		Chile	97.030.000-7	Banco del Estado de Chile	Chile	US$		1.69	%		1.01	%	At maturity		—		33,544,931		33,544,931		—		—		—		—		—		—
94.271.00-3	Enersis S.A.		Chile	97.004.000-5	Banco Santander Chile	Chile	Ch$		5.00	%		5.00	%	At maturity		1,519		—		1,519		—		—		—		—		—		—
79.913.810-7	Inmobiliaria Manso de Velasco Ltda.		Chile	97.004.000-5	Banco Santander Chile	Argentina	Ch$		6.00	%		6.00	%	Monthly		4		—		4		—		—		—		—		—		—
						Total										405,593		106,087,370		106,492,963		858,299		—		—		—		—		858,299

Taxpayer ID Number	Company	Country		Taxpayer ID Number	Financial Institution	Country	Currency	Effective Interest Rate			Nominal Interest Rate			Amortization	January 1, 2013
															Current ThCh$						Non-Current ThCh$
															Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non- Current
96.800.570-7	Chilectra S.A.		Chile	0-E	Credit lines	Chile	Ch$		5.91	%		5.91	%	Other		46		—		46		—		—		—		—		—		—
91.081.000-6	Endesa S.A. (Chile)		Chile	Foreign	B.N.P. Paribas	U.S.A	US$		6.32	%		5.98	%	Semi-annually		—		820,076		820,076		785,249		785,249		—		—		—		1,570,498
91.081.000-6	Endesa S.A. (Chile)		Chile	Foreign	Banco Santander C.H. SA Chile	U.S.A	US$		1.69	%		1.01	%	At maturity		—		—		—		15,792,106		—		—		—		—		15,792,106
91.081.000-6	Endesa S.A. (Chile)		Chile	97.004.000-5	Banco Santander Chile (Linea Crédito)	Chile	Ch$		6.00	%		6.00	%	At maturity		277		—		277		—		—		—		—		—		—
91.081.000-6	Endesa S.A. (Chile)		Chile	Foreign	Export Development Corpotation Loan	U.S.A	US$		1.57	%		1.40	%	Semi-annually		354,739		343,643		698,382		687,160		—		—		—		—		687,160
91.081.000-6	Endesa S.A. (Chile)		Chile	Foreign	The Bank of Tokyo-Mitsubishi, Ltd.	U.S.A	US$		1.68	%		1.00	%	At maturity		—		—		—		15,792,106		—		—		—		—		15,792,106
91.081.000-6	Endesa S.A. (Chile)		Chile	Foreign	Scotiabank & Trust Cayman Ltd	Cayman Islands	US$		1.68	%		1.00	%	At maturity		—		28,264		28,264		23,927,433		—		—		—		—		23,927,433
91.081.000-6	Endesa S.A. (Chile)		Chile	Foreign	Bank Of America	U.S.A	US$		1.66	%		1.03	%	At maturity		—		—		—		11,963,716		—		—		—		—		11,963,716
91.081.000-6	Endesa S.A. (Chile)		Chile	Foreign	Mercantil Commercebank	U.S.A	US$		1.68	%		1.00	%	At maturity		—		—		—		9,570,973		—		—		—		—		9,570,973
91.081.000-6	Endesa S.A. (Chile)		Chile	97.030.000-7	Banco del Estado de Chile	Chile	US$		1.69	%		1.01	%	At maturity		—		—		—		18,663,398		—		—		—		—		18,663,398
94.271.00-3	Enersis S.A.		Chile	97.004.000-5	Banco Santander Chile	Chile	Ch$		5.00	%		5.00	%	At maturity		109				109		—		—		—		—		—		—
79.913.810-7	Inmobiliaria Manso de Velasco Ltda.		Chile	97.004.000-5	Banco Santander Chile	Argentina	Ch$		6.00	%		6.00	%	Monthly		—		—		—		—		—		—		—		—		—
						Total										355,171		1,191,983		1,547,154		97,182,141		785,249		—		—		—		97,967,390

Appendix No.4, letter a), presents details of estimated future cash flows (undiscounted) that the Combined Group will have to disburse to settle the bank loans detailed above.

F-184

20.2 Unsecured liabilities

The detail of Unsecured Liabilities by currency and maturity as of December 31, 2014 and 2013 and January 1, 2013, is as follows:

Summary of unsecured liabilities by currency and maturity

	Currency	Annual Nominal Rate			Secured/ Unsecured	Current						Non-current
						Maturity				Total Current at 12/31/2014 ThCh$		Maturity										Total Non- current at 12/31/2014 ThCh$
						One to three months ThCh$		Three to twelve months ThCh$				One to two years ThCh$		Two to three years ThCh$		Three to Four years ThCh$		Four to five years ThCh$		Over five years ThCh$
Country
Chile	US$		7.17	%	Unsecured		10,600,825		123,527,558		134,128,383		—		—		—		—		419,950,580		419,950,580
Chile	U.F.		5.57	%	Unsecured		—		6,562,506		6,562,506		5,122,437		5,122,437		5,122,437		27,510,710		263,190,670		306,068,691
					Total		10,600,825		130,090,065		140,690,889		5,122,437		5,122,437		5,122,437		27,510,710		683,141,250		726,019,271

	Currency		Annual Nominal Rate			Secured/ Unsecured	Current						Non-current
							Maturity				Total Current at 12/31/2013 ThCh$		Maturity										Total Non- current at 12/31/2013 ThCh$
							One to three months ThCh$		Three to twelve months ThCh$				One to two years ThCh$		Two to three years ThCh$		Three to four years ThCh$		Four to five years ThCh$		Over five years ThCh$
Country
Chile	US$			7.99	%	Unsecured		9,165,713		—		9,165,713		104,458,309		—		—		—		159,088,295		263,546,604
Chile		U.F.		5.48	%	Unsecured		—		6,273,391		6,273,391		4,848,388		4,848,388		4,848,388		4,848,388		274,591,312		293,984,864
						Total		9,165,713		6,273,391		15,439,104		109,306,697		4,848,388		4,848,388		4,848,388		433,679,607		557,531,468

	Currency	Annual Nominal  Rate			Secured/ Unsecured	Current						Non-current
						Maturity				Total Current at 1/1/2013 ThCh$		Maturity										Total Non- current at 1/1/2013 ThCh$
						One to three months ThCh$		Three to twelve months ThCh$				One to two years ThCh$		Two to three years ThCh$		Three to four years ThCh$		Four to five years ThCh$		Over five years ThCh$
Country
Chile	US$		8.06	%	Unsecured		15,065,057		191,984,000		207,049,057		—		94,914,421		—		—		144,892,812		239,807,233
Chile	U.F.		5.48	%	Unsecured		—		6,178,710		6,178,710		4,750,876		4,750,876		4,750,876		4,750,876		273,441,557		292,445,061
					Total		15,065,057		198,162,710		213,227,767		4,750,876		99,665,297		4,750,876		4,750,876		418,334,369		532,252,294

20.3 Secured liabilities

As of December 31, 2014 and 2013 and January 1, 2013, there were no secured liabilities.

Fair value measurement and hierarchy

The fair value of current and non-current unsecured liabilities as of December 31, 2014 and 2013 and January 1, 2013 totaled ThCh$1,088,491,056, ThCh$720,236,576, and ThCh$893,434,380, respectively. The fair value measurement of these liabilities have been categorized as Level 2 (see Note 3.h).

F-185

- Secured and unsecured liabilities by company

Taxpayer ID Number	Company	Country	Taxpayer ID Number	Financial Institution	Country	Currency	Effective Interest Rate			Nominal Interest Rate			Secured		December 31, 2014
															Current ThCh$						Non-Current ThCh$
															Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non- Current
91.081.000-6	Endesa Chile S.A.	Chile	Foreing	BNY Mellon – Primera Emisión S-1	U.S.A	US$		7.96	%		7.88	%		No		4,098,882		—		4,098,882		—		—		—		—		123,713,346		123,713,346
91.081.000-6	Endesa Chile S.A.	Chile	Foreing	BNY Mellon – Primera Emisión S-2	U.S.A	US$		7.40	%		7.33	%		No		1,310,741		—		1,310,741		—		—		—		—		42,390,409		42,390,409
91.081.000-6	Endesa Chile S.A.	Chile	Foreing	BNY Mellon – Primera Emisión S-3	U.S.A	US$		8.26	%		8.13	%		No		830,186		—		830,186		—		—		—		—		18,905,448		18,905,448
91.081.000-6	Endesa Chile S.A.	Chile	Foreing	BNY Mellon – 144 – A	U.S.A	US$		8.83	%		8.63	%		No		4,361,016		121,350,000		125,711,016		—		—		—		—		—		—
91.081.000-6	Endesa Chile S.A.	Chile	Foreing	BNY Mellon – Unica 24296	U.S.A	US$		5.30	%		4.25	%		No		—		2,177,558		2,177,558		—		—		—		—		234,941,377		234,941,377
91.081.000-6	Endesa Chile S.A.	Chile	97.004.000-5	Banco Santander -317 Serie-H	Chile	U.F.		7.17	%		6.20	%		No		—		6,054,055		6,054,055		5,122,437		5,122,437		5,122,437		5,122,437		42,939,415		63,429,163
91.081.000-6	Endesa Chile S.A.	Chile	97.004.000-5	Banco Santander 522 Serie-M	Chile	U.F.		4.82	%		4.75	%		No		—		508,451		508,451		—		—		—		22,388,273		220,251,255		242,639,528
					Total Unsecured Bonds											10,600,825		130,090,064		140,690,889		5,122,437		5,122,437		5,122,437		27,510,710		683,141,250		726,019,271

Taxpayer ID No. (RUT)	Company	Country	ID No. Financial Institution	Financial Institution	Country	Currency	Effective Interest Rate			Nominal Interest Rate			Secured		December 31, 2013
															Current ThCh$						Non-current ThCh$
															Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		Over five years		Total Non- current
91,081,000-6	Endesa Chile S.A.	Chile	Foreign	The Bank of New York Mellon – First issue S-1	USA	US$		7.96	%		7.88	%		No		3,543,987		—		3,543,987		—		—		—		—		106,741,471		106,741,471
91,081,000-6	Endesa Chile S.A.	Chile	Foreign	The Bank of New York Mellon – First issue S-2	USA	US$		7.40	%		7.33	%		No		1,133,296		—		1,133,296		—		—		—		—		36,596,392		36,596,392
91,081,000-6	Endesa Chile S.A.	Chile	Foreign	The Bank of New York Mellon – First issue S-3	USA	US$		8.26	%		8.13	%		No		717,798		—		717,798		—		—		—		—		15,750,432		15,750,432
91,081,000-6	Endesa Chile S.A.	Chile	Foreign	The Bank of New York Mellon – 144 – A	USA	US$		8.83	%		8.63	%		No		3,770,632		—		3,770,632		104,458,309		—		—		—		—		104,458,309
91,081,000-6	Endesa Chile S.A.	Chile	Foreign	The Bank of New York Mellon -Single Series 24296	USA	US$		5.30	%		4.25	%		No		—		—		—		—		—		—		—		—		—
91,081,000-6	Endesa Chile S.A.	Chile	97,004,000-5	Banco Santander -317 Series-H	Chile	U.F.		7.17	%		6.20	%		No		—		5,792,134		5,792,134		4,848,388		4,848,388		4,848,388		4,848,388		45,132,232		64,525,785
91,081,000-6	Endesa Chile S.A.	Chile	97,004,000-5	Banco Santander 522 Series-M	Chile	U.F.		4.82	%		4.75	%		No		—		481,257		481,257		—		—		—		—		229,459,080		229,459,080
					Total Unsecured Bonds											9,165,713		6,273,391		15,439,104		109,306,697		4,848,388		4,848,388		4,848,388		433,679,607		557,531,469

Taxpayer ID No. (RUT)	Company	Country	ID No. Financial Institution	Financial Institution	Country	Currency	Effective Interest Rate			Nominal Interest Rate			Secured		January 1, 2013
															Current ThCh$						Non-current ThCh$
															Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		Over five years		Total Non- current
91,081,000-6	Endesa Chile S.A.	Chile	97.004.000-5	Banco Santander Chile – 317 Serie-H	Chile	UF		7.17	%		6.20	%		No		—		5,731,907		5,731,907		4,750,876		4,750,876		4,750,876		4,750,876		48,775,725		67,779,229
91,081,000-6	Endesa Chile S.A.	Chile	97.004.000-5	Banco Santander Chile – 522 Serie-M	Chile	UF		4.82	%		4.75	%		No		—		446,803		446,803		—		—		—		—		224,665,832		224,665,832
91,081,000-6	Endesa Chile S.A.	Chile	Foreign	The Bank of New York Mellon – 144 – A	USA	US$		8.50	%		8.35	%		No		6,679,443		191,984,000		198,663,443		—		—		—		—		—		—
91,081,000-6	Endesa Chile S.A.	Chile	Foreign	The Bank of New York Mellon – 144 – A	USA	US$		8.83	%		8.63	%		No		3,449,713		—		3,449,713		—		94,914,421		—		—		—		94,914,421
91,081,000-6	Endesa Chile S.A.	Chile	Foreign	The Bank of New York Mellon – Primera Emisión S-1	USA	US$		7.96	%		7.88	%		No		3,242,355		—		3,242,355		—		—		—		—		97,491,553		97,491,553
91,081,000-6	Endesa Chile S.A.	Chile	Foreign	The Bank of New York Mellon – Primera Emisión S-2	USA	US$		7.40	%		7.33	%		No		1,036,841		—		1,036,841		—		—		—		—		33,456,554		33,456,554
91,081,000-6	Endesa Chile S.A.	Chile	Foreign	The Bank of New York Mellon – Primera Emisión S-3	USA	US$		8.26	%		8.13	%		No		656,705		—		656,705		—		—		—		—		13,944,705		13,944,705
					Total Unsecured Bonds											15,065,057		198,162,710		213,227,767		4,750,876		99,665,297		4,750,876		4,750,876		418,334,369		532,252,294

Appendix No. 4, letter b) presents details of estimated future cash flows (undiscounted) that the Combined Group will have to disburse to settle the secured and unsecured liabilities detailed above.

F-186

- Detail of finance lease obligations

Tax ID No. (RUT)	Company		Country		ID No. Financial Institution		Financial Institution		Country		Currency	Nominal Interest Rate			December 31, 2014
															Current ThCh$						Non-current ThCh$
															Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		Over five years		Total Non- current
91,081,000-6		Endesa Chile S.A.		Chile		87,509,100-K		Abengoa Chile		Chile	US$		6.50	%		—		1,470,563		1,470,563		2,427,000		1,566,150		1,667,950		1,776,367		10,215,436		17,652,903
						Total										—		1,470,563		1,470,563		2,427,000		1,566,150		1,667,950		1,776,367		10,215,436		17,652,903

Tax ID No. (RUT)	Company		Country		ID No. Financial Institution		Financial Institution		Country		Currency	Nominal Interest Rate			December 31, 2013
															Current ThCh$						Non-current ThCh$
															Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		Over five years		Total Non- current
91,081,000-6		Endesa Chile S.A.		Chile		87,509,100-K		Abengoa Chile		Chile	US$		6.50	%		—		1,193,884		1,193,884		1,271,483		1,354,129		1,442,148		1,535,887		10,930,941		16,534,588
						Total										—		1,193,884		1,193,884		1,271,483		1,354,129		1,442,148		1,535,887		10,930,941		16,534,588

Tax ID No. (RUT)	Company		Country		ID No. Financial Institution		Financial Institution		Country		Currency	Nominal Interest Rate			January 1, 2013
															Current ThCh$						Non-current ThCh$
															Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		Over five years		Total Non- current
91,081,000-6		Endesa Chile S.A.		Chile		87,509,100-K		Abengoa Chile		Chile	US$		6.50	%		—		1,025,603		1,025,603		1,092,269		1,163,266		1,238,878		1,319,406		11,405,767		16,219,586
						Total										—		1,025,603		1,025,603		1,092,269		1,163,266		1,238,878		1,319,406		11,405,767		16,219,586

Appendix No. 4 letter c) presents details of estimated future cash flows (undiscounted) that the Combined Group will have to disburse to settle the finance lease obligations detailed above.

- Detail of other obligations

There were no other obligations as of December 31, 2014 and 2013. The detail of other obligations as of January 1, 2013 is as follows:

Tax ID No. (RUT)	Company		Country		ID No. Financial Institution		Financial Institution		Country		Currency	Nominal Interest Rate			January 1, 2013
															Current ThCh$						Non-current ThCh$
															Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		Over five years		Total Non- current
96,827,970-k		Endesa Eco S.A.		Chile		96,601,250-1		Inversiones Centinela S.A.		Chile	US$		6.10	%		2,022,260		—		2,022,260		—		—		—		—		—		—
						Total										2,022,260		—		2,022,260		—		—		—		—		—		—

F-187

20.4 Hedged debt

The U.S. dollar denominated debt of the Combined Group that is designated as cash flow hedge, as referenced in Note 3.m, was ThCh$608,113,125, ThCh$628,734,593, and ThCh$539,848,481 as of December 31, 2014 and 2013 and January 1, 2013 (See Note 3.m).

The following table details changes in “Reserve for cash flow hedges” as of December 31, 2014 and 2013 due to exchange differences of this debt:

	12-31-2014			12-31-2013
Balance in hedging reserves (hedging income) at the beginning of the period, net		(217,636	)		31,222,869
Foreign currency exchange differences recorded in equity, net		(30,045,776	)		(22,075,469	)
Recognition of foreign currency exchange differences in profit and loss, net		(9,541,685	)		(9,365,036	)
Foreign currency translation differences		—			—
Balance in hedging reserves (hedging income) at the end of the period, net		(39,805,097	)		(217,636	)

20.5 Other information

As of December 31, 2014 and 2013, and January 1, 2013, the Combined Group has undrawn borrowing Facilities available for use amounting to ThCh$238,502,592, ThCh$110,884,975, and ThCh$95,992,000, respectively.

21. RISK MANAGEMENT POLICY

The Combined Group entities are exposed to certain risks that are managed by systems that identify, measure, limit concentration of, and monitor these risks.

The main principles in the Combined Group’s risk management policy include the following:

• Compliance with good corporate governance standards.

• Strict compliance with all the Combined Group’s internal policies.

• Each business and corporate area determines:

I. The markets in which it can operate based on its knowledge and ability to ensure effective risk management;

II. Criteria regarding counterparts;

III. Authorized operators.

• Business and corporate areas establish their risk tolerance in a manner consistent with the defined strategy for each market in which they operate.

• All of the operations of the businesses and corporate areas are conducted within the limits approved for each case.

• Businesses, corporate areas, lines of business and companies design the risk management controls necessary to ensure that transactions in the markets are conducted in accordance with the Enersis Chile policies, standards, and procedures.

21.1 Interest rate risk

Changes in interest rates affect the fair value of assets and liabilities bearing fixed interest rates, as well as the expected future cash flows of assets and liabilities subject to floating interest rates.

F-188

The objective of managing interest rate risk exposure is to achieve a balance in the debt structure to minimize the cost of debt with reduced volatility in profit or loss.

In compliance with the current interest rate hedging policy, the proportion of fixed debt and/or hedged debt over the net total debt was 100% as of December 31, 2014.

Depending on the Combined Group’s estimates and on the objectives of the debt structure, hedging transactions are performed by entering into derivatives contracts that mitigate interest rate risk. Derivative instruments currently used to comply with the risk management policy are interest rate swaps to set floating rate at fixed rate.

The financial debt structure of the Combined Group detailed by the mostly strongly hedged fixed and floating interest rates on total net debt, net of hedging derivative instruments, is as follows:

Net position:

	12-31-2014 %			12-31-2013 %			1-1-2013 %
Fixed interest rate		100	%		100	%		100	%
Floating interest rate		—			—			—
Total		100	%		100	%		100	%

21.2 Exchange rate risk

Exchange rate risks involve basically the following transactions:

• Debt taken on by the Combined Group’s companies that is denominated in a currency other than that in which its cash flows are indexed.

• Payments to be made for the acquisition of project-related materials and for corporate insurance policies in a currency other than that in which its cash flows are indexed.

• Income in the Combined Group companies directly linked to changes in currencies other than that of its cash flows.

In order to mitigate foreign currency risk, the Combined Group’s foreign currency risk management policy is based on cash flows and includes maintaining a balance between U.S. dollar flows and the levels of assets and liabilities denominated in this currency. The objective is to minimize the exposure to variability in cash flows that are attributable to foreign exchange risk.

The hedging instruments currently being used to comply with the policy are currency swaps and forward exchange contracts. In addition, the policy seeks to refinance debt in the functional currency of each of the Combined Group’s companies.

21.3 Commodities risk

The Combined Group has a risk exposure to price fluctuations in certain commodities, basically due to:

• Purchases of fuel used to generate electricity.

• Energy purchase/sale transactions that take place in local markets.

In order to reduce the risk in situations of extreme drought, the Combined Group has designed a commercial policy that defines the levels of sales commitments in line with the capacity of its generating power plants in a dry year. It also includes risk mitigation terms in certain contracts with unregulated customers and with regulated customers subject to long-term tender processes, establishing indexation polynomials that allow for reducing commodities exposure risk.

F-189

Considering the operating conditions faced by the power generation market in Chile, with drought and highly volatile commodity prices on international markets, the Combined Group is constantly verifying the advisability of using hedging to lessen the impacts that these price swings have on its results. As of December 31, 2014, the Combined Group had swap hedges for 266,000 barrels of Brent oil for January 2015 and 350,000 MMBTU of Henry Hub gas for February 2015. As of December 31, 2013, the Combined Group had no derivative operations for commodities. As of January 1, 2013, the Combined Group had swap hedges for 462,000 barrels of Brent oil for January 2013 and 365,000 tons of coal for the period February – June 2013.

Depending on operating conditions, which are constantly being updated, these hedges may be modified or may cover other commodities.

21.4 Liquidity risk

The Combined Group maintains a liquidity risk management policy that consists of entering into long-term committed banking facilities and temporary financial investments for amounts that cover the projected needs over a period of time that is determined based on the situation and expectations for debt and capital markets.

The projected needs mentioned above include maturities of financial debt, net of financial derivatives. For further details regarding the features and conditions of financial obligations and financial derivatives, See Notes 20 and 22, and Appendix No. 4.

As of December 31, 2014 and 2013 and January 1, 2013, the Combined Group has cash and cash equivalent totaling ThCh$132,985,927, ThCh$214,907,097, and ThCh$94,093,760, respectively, and unconditionally available lines of long-term credit totaling ThCh$238,502,592, ThCh$110,884,975, and ThCh$95,992,000, respectively.

21.5 Credit risk

The Combined Group closely monitors its credit risk.

Trade receivables:

The credit risk for receivables from the Combined Group’s commercial activity has historically been very low, due to the short term period of collections from customers, resulting in non-significant cumulative receivables amounts. This situation applies to both the electricity generating and distribution lines of business.

In our electricity generating business, some countries’ regulations allow the suspension of energy service to customers with outstanding payments, and most contracts have termination clauses for payment default. The Combined Group monitors its credit risk on an ongoing basis and measures quantitatively its maximum exposure to payment default risk, which, as stated above, is very low.

In our electricity distribution companies, the suspension of energy service for customers in payment default is permitted in all cases, in accordance with current regulations in each country. This facilitates our credit risk management, which is also low in this line of business.

Financial assets:

Cash surpluses are invested in the highest-rated local and foreign financial entities (with risk rating equivalent to investment grade where possible) with thresholds established for each entity.

Banks that have received investment grade ratings from the three major international rating agencies (Moody’s, S&P, and Fitch) are selected for making investments.

F-190

Investments may be backed with treasury bonds from the countries in which the Combined Group operates and/or with commercial papers issued by the highest rated banks; the latter are preferred, as they offer higher returns (always in line with current investment policies).

Derivative instruments are entered into with entities with solid creditworthiness; all derivative transactions are performed with entities with investment grade ratings.

21.6 Risk measurement

The Combined Group measures the Value at Risk (VaR) of its debt positions and financial derivatives in order to monitor the risk assumed by the Combined Group, thereby reducing volatility in the income statement.

The VaR determined represents the potential variation in value of the portfolio of positions described above in one quarter with a 95% confidence level. To determine the VaR, we take into account the volatility of the risk variables affecting the value of the portfolio of positions including:

• U.S. dollar Libor interest rate.

• The exchange rates of the Chilean Peso and the Unidad de Fomento (U.F.) against the U.S. dollar.

The calculation of VaR is based on generating possible future scenarios (at one quarter) of market values (both spot and term) for the risk variables based on the scenarios with observable inputs for a same period (quarter) during five years.

The one-quarter 95%-confidence VaR number is calculated as the 5% percentile of the potential variations in the fair value of the portfolio in one quarter.

Taking into account the assumptions described above, the one-quarter VaR was ThCh$18,177. This amount represents the potential increase of the Debt and Derivatives’ Portfolio, thus these Values at Risk are inherently related to the Portfolio’s value at end of each quarter.

22. FINANCIAL INSTRUMENTS

22.1 Financial instruments, classified by type and category

a) The detail of financial assets, classified by type and category, as of December 31, 2014 and 2013 and January 1, 2013 is as follows:

	December 31, 2014
	Financial assets held for trading		Financial assets at fair value through profit or loss		Held-to- maturity investments		Loans and receivables		Available-for- sale financial assets		Financial derivatives for hedging
	ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$
Derivative instruments		33,882		—		—		—		—		508,458
Other financial assets		—		—		948,789		595,033,855		—		—
Total Current		33,882		—		948,789		595,033,855		—		508,458
Equity instruments		—		—		—		—		3,032,834		—
Derivative instruments		22,002		—		—		—		—		3,695,636
Other financial assets		—		—		—		7,496,412		—		—
Total Non-Current		22,002		—		—		7,496,412		3,032,834		3,695,636
Total		55,884		—		948,789		602,530,267		3,032,834		4,204,094

F-191

	December 31, 2103
	Financial assets held for trading		Financial assets at fair value through profit or loss		Held-to- maturity investments		Loans and receivables		Available-for- sale financial assets		Financial derivatives for hedging
	ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$
Derivative instruments		361,595		—		—		—		—		20,948,126
Other financial assets		—		—		954,230		337,329,526		—		—
Total Current		361,595		—		954,230		337,329,526		—		20,948,126
Equity instruments		—		—		—		—		2,782,608		—
Other financial assets		—		—		—		6,875,034		—		—
Total Non-Current		—		—		—		6,875,034		2,782,608		—
Total		361,595		—		954,230		344,204,560		2,782,608		20,948,126

	January 1, 2013
	Financial assets held for trading		Financial assets at fair value through profit or loss		Held-to- maturity investments		Loans and receivables		Available-for- sale financial assets		Financial derivatives for hedging
	ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$
Derivative instruments		—		—		—		—		—		—
Other financial assets		—		3,864		—		327,623,723		—		—
Total Current		—		3,864		—		327,623,723		—		—
Equity instruments		—		—		—		—		2,717,248		—
Derivative instruments		—		—		—		—		—		28,676,421
Other financial assets		—		—		—		13,443,082		—		—
Total Non-Current		—		—		—		13,443,082		2,717,248		28,676,421
Total		—		3,864		—		341,066,805		2,717,248		28,676,421

b)The detail of financial liabilities, classified by type and category, as of December 31, 2014 and 2013 and January 1, 2013 is as follows:

	12-31-2014
	Financial liabilities held for trading ThCh$		Financial liabilities at fair value through profit or loss ThCh$		Loans and payables ThCh$		Financial derivatives for hedging ThCh$
Interest-bearing loans		—		—		143,170,408		—
Derivative instruments		2,526,798		—		—		667,153
Other financial liabilities		—		—		682,546,548		—
Total Current		2,526,798		—		825,716,956		667,153
Interest-bearing loans		—		—		743,672,174		—
Derivative instruments		6,286,982		—		—		28,176,011
Other financial liabilities		—		—		3,711,078		—
Total Non-current		6,286,982		—		747,383,252		28,176,011
Total		8,813,780		—		1,573,100,208		28,843,164

F-192

	12-31-2013
	Financial liabilities held for trading ThCh$		Financial liabilities at fair value through profit or loss ThCh$		Loans and payables ThCh$		Financial derivatives for hedging ThCh$
Interest-bearing loans		—		—		125,818,375		—
Derivative instruments		164,983		—		—		1,280,496
Other financial liabilities		—		—		695,502,932		—
Total Current		164,983		—		821,321,307		1,280,496
Interest-bearing loans		—		—		579,403,606		—
Derivative instruments		—		—		—		—
Total Non-current		—		—		579,403,606		—
Total		164,983		—		1,400,724,913		1,280,496

	1-1-2013
	Financial liabilities held for trading ThCh$		Financial liabilities at fair value through profit or loss ThCh$		Loans and payables ThCh$		Financial derivatives for hedging ThCh$
Interest-bearing loans		—		2,022,260		218,243,373		—
Derivative instruments		—		—		—		91,276
Other financial liabilities		—		—		341,250,795		—
Total Current		—		2,022,260		559,494,168		91,276
Interest-bearing loans		—		—		653,466,704		—
Derivative instruments		—		—		—		3,214,525
Total Non-current		—		—		653,466,704		3,214,525
Total		—		2,022,260		1,212,960,872		3,305,801

22.2 Derivative instruments

The risk management policy of the Combined Group uses primarily interest rate and foreign exchange rate derivatives to hedge its exposure to interest rate and foreign currency risks.

The Combined Group classifies its derivatives as follows:

• Derivatives designated for Cash flow hedges: Those that hedge the cash flows of the underlying hedged item.

• Derivatives designated for Fair value hedges: Those that hedge the fair value of the underlying hedged item.

• Non-hedge derivatives: Financial derivatives that do not meet the requirements established by IFRS to be designated as hedge instruments are recorded at fair value with changes in net income (assets held for trading).

F-193

a) Assets and liabilities for hedge derivative instruments

As of December 31, 2014 and 2013 and January 1, 2013, financial derivative transactions qualifying as hedge instruments resulted in recognition of the following assets and liabilities in the combined statement of financial position:

	December 31, 2014
	Assets				Liabilities
	Current ThCh$		Non-current ThCh$		Current ThCh$		Non-current ThCh$
Exchange rate hedge:		508,458		3,695,636		667,153		28,176,011
Cash flow hedge		508,458		3,695,636		667,153		28,176,011
Total		508,458		3,695,636		667,153		28,176,011

	December 31, 2013
	Assets				Liabilities
	Current ThCh$		Non-current ThCh$		Current ThCh$		Non-current ThCh$
Interest rate hedge:		—		—		1,197,310		—
Cash flow hedge		—		—		1,197,310		—
Exchange rate hedge:		20,948,126		—		83,186		—
Cash flow hedge		20,948,126		—		83,186		—
Total		20,948,126		—		1,280,496		—

	January 1, 2013
	Assets				Liabilities
	Current ThCh$		Non-current ThCh$		Current ThCh$		Non-current ThCh$
Interest rate hedge:		—		—		49,225		3,214,525
Cash flow hedge		—		—		49,225		3,214,525
Exchange rate hedge:		—		28,676,421		42,051		—
Cash flow hedge		—		28,676,421		42,051		—
Total		—		28,676,421		91,276		3,214,525

General information on hedge derivative instruments

Hedge derivative instruments and their corresponding hedged instruments are shown in the following table:

Detail of hedge instruments	Description of hedge instrument	Description of instrument hedged	Fair value of instruments hedged			Fair value of instruments hedged			Fair value of instruments hedged
			12-31-2014 ThCh$			12-31-2013 ThCh$			1-1-2013 ThCh$
Swap	Interest rate	Bank borrowings		—			(1,197,310	)		(3,263,750	)
Swap	Exchange rate	Unsecured obligations (bonds)		(24,639,070	)		20,864,940			28,634,370

For the years ended December 31, 2014 and 2013, the Combined Group has not recognized significant gains or losses for ineffective cash flow hedges.

F-194

b) Financial derivative instrument assets and liabilities at fair value through profit or loss

As of December 31, 2014 and 2013, financial derivative transactions recorded at fair value through profit or loss, resulted in the recognition of the following assets and liabilities in the statement of financial position:

	December 31, 2014
	Current Assets ThCh$		Current Liabilities ThCh$		Non-current Assets ThCh$		Non-current Liabilities ThCh$
Non-hedging derivative instruments		33,882		2,526,798		22,002		6,286,982

	December 31, 2013
	Current Assets ThCh$		Current Liabilities ThCh$		Non-current Assets ThCh$		Non-current Liabilities ThCh$
Non-hedging derivative instruments		361,595		164,983		—		—

As of January 1, 2013, there were no financial derivative transactions recorded at fair value through profit or loss.

c) Other information on derivatives

The following tables present the fair value of hedging and non-hedging derivatives entered into by the Combined Group as well as the remaining contractual maturities as of December 31, 2014 and 2013 and January 1, 2013:

	December 31, 2014
	Fair value ThCh$			Notional amount
Financial derivatives				Less than one year ThCh$		1-2 years ThCh$		2-3 years ThCh$		3-4 years ThCh$		4-5 years ThCh$		More than 5 yeras ThCh$		Total ThCh$
Exchange rate hedge:		(24,639,070	)		—		—		—		—		260,451,370		—		260,451,370
Cash flow hedge		(24,639,070	)		—		—		—		—		260,451,370		—		260,451,370
Derivatives not designated for hedge accounting		(8,757,896	)		65,572,071		46,908,791		45,078,924		19,426,499		—		—		176,986,285
Total		(33,396,066	)		65,572,071		46,908,791		45,078,924		19,426,499		260,451,370		—		437,437,655

	December 31, 2013
				Notional amount
Financial derivatives	Fair value ThCh$			Less than one year ThCh$		1-2 years ThCh$		2-3 years ThCh$		3-4 years ThCh$		4-5 years ThCh$		More than 5 yeras ThCh$		Total ThCh$
Interest rate hedge:		(1,197,310	)		104,922,000		—		—		—		—		—		104,922,000
Cash flow hedge		(1,197,310	)		104,922,000		—		—		—		—		—		104,922,000
Exchange rate hedge:		20,864,940			207,559,921		—		—		—		—		—		207,559,921
Cash flow hedge		20,864,940			207,559,921		—		—		—		—		—		207,559,921
Derivatives not designated for hedge accounting		196,612			32,354,473		—		—		—		—		—		32,354,473
Total		19,864,242			344,836,394		—		—		—		—		—		344,836,394

F-195

	January 1, 2013
				Notional amount
Derivados financieros	Fair value ThCh$			Less than one year ThCh$		1-2 years ThCh$		2-3 years ThCh$		3-4 years ThCh$		4-5 years ThCh$		More than 5 yeras ThCh$		Total ThCh$
Interest rate hedge:		(3,263,750	)		—		95,992,000		—		—		—		—		95,992,000
Cash flow hedge		(3,263,750	)		—		95,992,000		—		—		—		—		95,992,000
Exchange rate hedge:		28,634,370			—		189,894,321		—		—		—		—		189,894,321
Cash flow hedge		28,634,370			—		189,894,321		—		—		—		—		189,894,321
Derivatives not designated for hedge accounting		—			—		—		—		—		—		—		—
Total		25,370,620			—		285,886,321		—		—		—		—		285,886,321

The hedging and non-hedging derivatives contractual maturities do not represent the Combined Group’s total risk exposure, as the amounts presented in the above tables have been drawn up based on undiscounted contractual cash inflows and outflows for their settlement.

22.3 Fair value hierarchy

Financial instruments recognized at fair value in the combined statement of financial position are classified based on the hierarchy described in Note 3h.

The following table presents financial assets and liabilities measured at fair value as of December 31, 2014 and 2013 and January 1, 2013:

Financial instruments measured at fair value			Fair value measured at end of reporting period using:
	12-31-2014 ThCh$		Level 1 ThCh$		Level 2 ThCh$		Level 3 ThCh$
Financial Assets
Financial derivatives designated as cash flow hedges		4,204,094		—		4,204,094		—
Financial derivatives not designated for hedge accounting		55,884		—		55,884		—
Available-for-sale financial assets, non-current		362,169		362,169		—		—
Total		4,622,147		362,169		4,259,978		—
Financial Liabilities
Financial derivatives designated as cash flow hedges		28,843,164		—		28,843,164		—
Financial derivatives not designated for hedge accounting		8,813,780		—		8,813,780		—
Total		37,656,944		—		37,656,944		—

Financial instruments measured at fair value			Fair value measured at end of reporting period using:
	12-31-2013 ThCh$		Level 1 ThCh$		Level 2 ThCh$		Level 3 ThCh$
Financial Assets
Financial derivatives designated as cash flow hedges		20,948,126		—		20,948,126		—
Financial derivatives not designated for hedge accounting		361,595		—		361,595		—
Commodity derivatives designted as cash flow hedges		129,780		—		129,780		—
Available-for-sale financial assets, non-current		29,195		29,195		—		—
Total		21,468,696		29,195		21,439,501		—
Financial Liabilities
Financial derivatives designated as cash flow hedges		1,280,496		—		1,280,496		—
Financial derivatives not designated for hedge accounting		164,983				164,983		—
Total		1,445,479		—		1,445,479		—

F-196

Financial instruments measured at fair value			Fair value measured at end of reporting period using:
	1-1-2013 ThCh$		Level 1 ThCh$		Level 2 ThCh$		Level 3 ThCh$
Financial Assets
Financial derivatives designated as cash flow hedges		28,676,421		—		28,676,421		—
Commodity derivatives designted as cash flow hedges		784,741		—		784,741		—
Financial assets at fair value through profit or loss		3,864		3,864		—		—
Available-for-sale financial assets, non-current		31,468		31,468		—		—
Total		29,496,494		35,332		29,461,162		—
Financial Liabilities
Financial derivatives designated as cash flow hedges		3,305,801		—		3,305,801		—
Commodity derivatives designted as cash flow hedges		32,200		—		32,200		—
Other non-current financial liabilities		—		—		—		2,022,260
Total		3,338,001		—		3,338,001		2,022,260

b) The following is the reconciliation between opening and closing balances for financial instruments whose fair value is classified at Level 3:

Non-current Interest-bearing Borrowings	ThCh$
Balance at January 1, 2013		2,022,260
Total profit recognized in financial profit or loss		(2,022,260	)
Balance at December 31, 2013		—
Total profit recognized in financial profit or loss		—
Balance at December 31, 2014		—

The fair value of Level 3 has been calculated by applying a traditional discounted cash flow method. These projected cash flows include assumptions from within the Combined Group that are primarily based on estimates for prices and levels of energy production and firm capacity, as well as the costs of operating and maintaining some of our plants.

None of the possible reasonable scenarios foreseeable in the assumptions mentioned in the above paragraph would result in a significant change in the fair value of the financial instruments included at this level.

23. TRADE AND OTHER CURRENT PAYABLES

The breakdown of Trade and Other Payables as of December 31, 2014 and 2013 is as follows:

	Current						Non-current
Trade and Other Payables	12-31-2014 ThCh$		12-31-2013 ThCh$		1-1-2013 ThCh$		12-31-2014 ThCh$		12-31-2013 ThCh$		1-1-2013 ThCh$
Trade payables		141,406,478		110,858,208		126,353,801		—		—		—
Other payables		353,954,877		247,472,788		148,005,330		3,711,078		—		—
Total		495,361,355		358,330,996		274,359,131		3,711,078		—		—

F-197

The detail of Trade and Other Current Payables as of December 31, 2014 and 2013 and 2013 is as follows:

	Current						Non-current
Trade and Other Payables	12-31-2014 ThCh$		12-31-2013 ThCh$		1-1-2013 ThCh$		12-31-2014 ThCh$		12-31-2013 ThCh$		1-1-2013 ThCh$
Energy suppliers		117,406,230		101,048,199		110,594,771		—		—		—
Fuel and natural gas suppliers		24,000,248		9,810,009		15,759,030		—		—		—
Payables for goods and services		239,620,155		180,018,380		109,525,219		—		—		—
Dividends payable to non-controlling interests		52,514,644		52,801,224		31,172,908		—		—		—
Payables to tax authorities other than Corporate Income Tax		9,151,384		—		1,226,740		3,711,078		—		—
VAT debit		13,615,918		—		—		—		—		—
Mitsubishi contract (LTSA)		34,214,611		13,458,204		5,081,697		—		—		—
Other payables		4,838,165		1,194,980		998,766		—		—		—
Total		495,361,355		358,330,996		274,359,131		3,711,078		—		—

See Note 21.4 for the description of the liquidity risk management policy.

The detail of trade payables, both non-past due and past due as of December 31, 2014 and 2013 and January 1, 2013, are presented in Appendix 7.

24. PROVISIONS

a) The breakdown of provisions as of December 31, 2014 and 2013 and January 1, 2013 is as follows:

Provisions	Current						Non-current
	12-31-2014 ThCh$		12-31-2013 ThCh$		1-1-2013 ThCh$		12-31-2014 ThCh$		12-31-2013 ThCh$		1-1-2013 ThCh$
Provision for legal proceedings		5,113,728		7,072,256		3,038,316		2,397,507		6,292,648		8,392,536
Provision for decommissioning and restoration (1)								25,572,428		17,691,003		16,693,529
Other provisions		6,509,786		37,566,816		35,614,471		—		—		197,707
Total		11,623,514		44,639,072		38,652,787		27,969,935		23,983,651		25,283,772

(1) See Note 3a

The expected timing and amount of any cash outflows related to the above provisions is uncertain and depends on the final resolution of the provisioned matters (See note 3.l)

The management of Enersis Chile considers that the provisions recorded in the combined financial statements are adequate to cover the risks resulting from litigation.

F-198

b) Changes in provisions as of December 31, 2014 and 2013 and January 1, 2013 are as follows:

	Legal Proceedings ThCh$			Decommissioning or Restoration ThCh$		Other Provisions ThCh$			Total ThCh$
Changes in Provisions
Balance at January 1, 2014		13,364,904			17,691,003		37,566,816			68,622,723
Additional provisions		—			6,815,580		—			6,815,580
Increase (decrease) in existing provisions		(925,600	)		15,850		(31,043,430	)		(31,953,180	)
Provisions used		(4,928,069	)		—		(13,601	)		(4,941,670	)
Increase from adjustment to time value of money		—			1,049,996		—			1,049,996
Foreign currency translation		—			—		—			—
Other increase (decrease)		—			—		—			—
Total changes in provisions		(5,853,669	)		7,881,426		(31,057,031	)		(29,029,274	)
Balance at December 31, 2014		7,511,235			25,572,429		6,509,785			39,593,449

	Legal Proceedings ThCh$			Decommissioning or Restoration ThCh$		Other Provisions ThCh$			Total ThCh$
Changes in Provisions
Balance at January 1, 2013		11,430,852			16,693,529		35,812,178			63,936,559
Additional provisions		—			—		—			—
Increase (decrease) in existing provisions		2,795,206			14,952		—			2,810,158
Provisions used		(232,518	)		—		(824,158	)		(1,056,676	)
Increase from adjustment to time value of money		—			982,522		159,361			1,141,883
Foreign currency translation		(168,021	)		—		—			(168,021	)
Other increase (decrease)		(460,615	)		—		2,419,435			1,958,820
Total changes in provisions		1,934,052			997,474		1,754,638			4,686,164
Balance at December 31, 2013		13,364,904			17,691,003		37,566,816			68,622,723

25. EMPLOYEE BENEFIT OBLIGATIONS

25.1 General information

The Combined Group provides various post-employment benefits for all or some of their active or retired employees. These benefits are calculated and recorded in the financial statements according to the criteria described in Note 3.l.1, and include primarily the following:

Defined benefit plans:

• Complementary pension: The beneficiary is entitled to receive a monthly amount that supplements the pension obtained from the respective social security system.

• Employee severance indemnities: The beneficiary receives a certain number of contractual salaries upon retirement. Such benefit is subject to a vesting minimum service requirement period, which depending on the entity, varies within a range from 5 to 15 years.

• Electricity: The beneficiary receives a monthly bonus to cover a portion of their billed residential electricity consumption.

• Health benefit: The beneficiary receives health coverage in addition to that to which they are entitled to under applicable social security regime.

F-199

25.2 Details, changes and presentation in financial statements

a) The post-employment obligations associated with the defined benefits plan as of December 31, 2014 and 2013 and January 1, 2013 are as follows:

General ledger accounts:

	12-31-2014 ThCh$		12-31-2013 ThCh$		1-1-2013 ThCh$
Post-employment obligations		53,937,842		41,495,612		38,842,337
Total		53,937,842		41,495,612		38,842,337
Non-current portion		53,937,842		41,495,612		38,842,337

b) The following amounts were recognized in the combined statement of comprehensive income for the years ended December 31, 2014 and 2013:

	12-31-2014 ThCh$		12-31-2013 ThCh$
Expense Recognized in the Statement of Comprehensive Income
Current service cost for defined benefits plan		1,642,846		1,476,129
Interest cost for defined benefits plan		2,139,043		2,197,469
Past service costs		667,153		—
Expenses recognized in the Statement of Income		4,449,042		3,673,598
Gains (losses) from remeasurement of defined benefit plans		12,692,856		3,260,244
Total expense recognized in the Statement of Comprehensive Income		17,141,898		6,933,842

c) The balance and changes in post-employment defined benefit obligations as of December 31, 2014 and 2013 and January 1, 2013 are as follows:

Net Actuarial Liabilities	ThCh$
Balance at January 1, 2013		38,842,337
Current service cost		1,476,129
Net interest cost		2,197,469
Actuarial (gains) losses from changes in financial assumptions		1,969,177
Actuarial (gains) losses from changes in experience adjustments		1,291,067
Benefits paid		(4,173,234	)
Other		(107,331	)
Balance at December 31, 2013		41,495,612
Current service cost		1,642,846
Net interest cost		2,139,043
Actuarial (gains) losses from changes in financial assumptions		6,190,052
Actuarial (gains) losses from changes in experience adjustments		6,502,804
Benefits paid		(5,007,250	)
Foreign currency translation differences		(273,590	)
Past service costs		667,153
Defined benefit plan obligations from business combinations		1,297,048
Transferred to held for sale		(102,423	)
Other		(613,453	)
Balance at December 31, 2014		53,937,842

The Combined Group companies make no contributions to funds for financing the payment of these benefits.

F-200

Other disclosures:

• Actuarial assumptions:

As of December 31, 2014 and 2013 and January 1, 2013, the following assumptions were used in the actuarial calculation of defined benefits:

	12-31-2014			12-31-2013			1-1-2013
Discount rates used		4.60	%		5.40	%		6.0	%
Expected rate of salary increases		4.00	%		3.00	%		3.0	%
Mortality tables		RV—2009			RV—2004			RV—2004

• Sensitivity

As of December 31, 2014 and 2013 and January 1, 2013, the sensitivity value of the actuarial liability for post-employment benefits to variations of 100 basis points in the discount rate assumes a decrease of ThCh$3,886,938, ThCh$3,187,030, and ThCh$2,890,774, respectively, if the rate rises, and an increase of ThCh$4,559,332, ThCh$3,716,366, and ThCh$3,338,399 if the rate falls.

• Future disbursements

The estimates available indicate that ThCh$7,615,896 (ThCh$5,344,740 for the year ended December 31, 2014) will be disbursed for defined benefit plans in the next year.

• Term of commitments

The Combined Group’s obligations have a weighted average length of 7.55 years for the year ended December 31, 2014 (8.24 years in 2013), and the outflows for benefits for the next five years and more is expected to be as follows:

Years	ThCh$
1		7,615,896
2		5,206,831
3		4,457,526
4		4,253,947
5		4,982,185
Over 5		25,385,653

26. EQUITY

26.1 Net assets (Combined financial statements)

As stated in Note 2.1 “Basis of preparation” Enersis Chile was not a group for Consolidated Financial Statements reporting purposes in accordance with IFRS 10Consolidated Financial Statements and was presented on the basis of the aggregation of the net assets of the legal entities of Enersis group located in Chile. Since the combined group does not have any subscribed issued shares, a presentation of earning per share in accordance with IAS 33Earnings per Share, it is not applicable.

F-201

26.2 Foreign currency translation reserves

The following table details currency translation adjustments attributable to the shareholders of Enersis, in the combined statement of financial position as of December 31, 2014 and 2013:

Reserves for Accumulated Currency Translation Differences	12-31-2014 ThCh$			12-31-2013 ThCh$
Inversiones GasAtacama Holding Ltda.		11,500,876			5,380,978
GNL Quinteros		(957,220	)		(1,683,614	)
GNL Chile		119,434			23,820
Electrogas		780,876			(93,000	)
TOTAL		11,443,966			3,628,184

26.3 Restrictions on combined entities transferring funds to the parent

Certain of the Group’s combined entities must comply with financial ratio covenants which require them to have a minimum level of equity or other requirements that restrict the transferring of assets to Enersis. The Combined Group’s restricted net assets as of December 31, 2014 from its subsidiary Endesa Chile totaled ThCh$471,161,296.

26.4 Other reserves

Other reserves within Equity attributable to Enersis Chile as of December 31, 2014 and 2013 are as follows:

	Balance at January 1, 2014 ThCh$			2014 Changes ThCh$			Balance at December 31, 2014 ThCh$
Exchange differences on translation		3,628,184			7,815,782			11,443,966
Cash flow hedges		(6,258,379	)		(60,592,484	)		(66,850,863	)
Available-for-sale financial assets		11,811			2,235			14,046
Other miscellaneous reserves		(877,246,493	)		3,760,126			(873,486,367	)
TOTAL		(879,864,877	)		(49,014,341	)		(928,879,218	)

	Balance at January 1, 2013 ThCh$			2013 Changes ThCh$			Balance at December 31, 2013 ThCh$
Exchange differences on translation		(3,488,610	)		7,116,794			3,628,184
Cash flow hedges		25,228,578			(31,486,957	)		(6,258,379	)
Available-for-sale financial assets		13,647			(1,836	)		11,811
Other miscellaneous reserves		360,334,722			(1,237,581,215	)		(877,246,493	)
TOTAL		382,088,337			(1,261,953,214	)		(879,864,877	)

a) Reserves for exchange differences on translation arise from:

• Translation of the financial statements of our foreign operations from their functional currencies to our presentation currency (i.e. Chilean peso) (see Note 2.6.3); and

• Translation of goodwill arising from the acquisition of foreign operations with a functional currency other than the Chilean peso (see Note 3.c).

b) Cash flow hedging reserves:These reserves represent the cumulative effective portion of gains and losses recognized on cash flow hedges (see Note 3.g.5).

F-202

c) Other reserves

The items included in the balance in “Other miscellaneous reserves” as of December 31, 2014 and 2013 are explained as follows:

i) In accordance with Official Bulletin No. 456 from the SVS (Superintendencia de Valores y Seguros de Chile), included in this line item is the price-level restatment corresponding to the accumulated paid-in capital from the date of our transition to IFRS, January 1, 2004, to December 31, 2008.

Please note that, while the Combined Group adopted the IFRS as its statutory accounting standards on January 1, 2013, the date of transition was the same as that used by its parent company, Endesa, S.A. located in Spain, January 1, 2004, applying the exemption for that purpose in IFRS 1, “First Time Adoption”.

ii) Foreign currency translation differences existing at the time of transition to IFRS (IFRS 1 exemption, First Time Adoption).

26.5 Non-controlling Interests

26.5.1 The detail of non-controlling interests

	Non-controlling Financial Interests
	12-31-2014			Equity						Profit (Loss)
Companies				12-31-2014		12-31-2013		1-1-2013		12-31-2014			12-31-2013
	%			ThCh$		ThCh$		ThCh$		ThCh$			ThCh$
Chilectra Chile		0.91	%		6,096,609		5,056,793		4,961,366		1,134,243			1,038,575
Endesa Chile		40.02	%		590,523,470		578,601,677		551,018,023		22,360,050			69,291,895
Empresa Eléctrica Pehuenche S.A.		7.35	%		12,597,077		12,756,939		12,351,472		9,526,574			8,415,147
Sociedad Agrícola de Cameros Ltda.		42.50	%		2,483,339		2,532,644		2,584,716		(49,305	)		(52,073	)
Constructora y Proyectos Los Maitenes S.A.		0.00	%		—		25,446,652		25,393,339		3,948,804			3,543,412
Otras					163,862		2,551,916		9,243,311		180,012			620,899
TOTAL					611,864,357		626,946,621		605,552,277		37,100,378			82,857,855

F-203

27. REVENUE AND OTHER INCOME

The detail of revenues presented in the statement of comprehensive income for the years ended December 31, 2014 and 2013 is as follows:

Revenues	For the years ended
	12-31-2014 ThCh$		12-31-2013 ThCh$
Energy sales		1,886,300,883		1,516,877,306
Generation		888,464,799		674,123,726
Regulated customers		498,286,123		481,385,994
Non-regulated customers		274,937,535		156,628,460
Spot market sales		98,642,810		27,575,021
Other customers		16,598,331		8,534,251
Distribution		997,836,084		842,753,580
Residential		335,917,449		283,881,233
Business		281,978,818		238,298,115
Industrial		196,219,296		165,823,406
Other consumers (1)		183,720,521		154,750,826
Other sales		26,677,747		37,365,915
Natural gas sales		4,721,304		25,261,022
Sales of products and services		21,956,443		12,104,893
Revenue from other services		101,885,268		165,323,495
Tolls and transmission		32,836,510		101,073,720
Metering equipment leases		4,188,416		4,301,905
Public lighting		9,558,413		5,945,226
Engineering and consulting services		290,889		348,714
Other services (2)		55,011,040		53,653,930
Total operating revenue		2,014,863,898		1,719,566,716

Other Operating Income	12-31-2014 ThCh$		12-31-2013 ThCh$
Mutual support		1,136,352		2,753,665
Leases		680,168		306,963
Other income (3)		32,384,867		15,455,533
Total other income		34,201,387		18,516,161

(1) For the year ended December 31, 2014, includes revenues from energy sales to municipalities for ThCh$68,818,164; government entities ThCh$33,329,550; hospitals and other related public health entities for ThCh$22,821,228; distribution companies for ThCh$43,305,906; agricultural sector entities for ThCh$8,079,571; and other for ThCh$7,366,103. For the year ended December 31, 2013, includes revenues from energy sales to municipalities for ThCh$47,688,673; government entities ThCh$22,974,154; hospitals and other related public health entities for ThCh$44,018,911; distribution companies for ThCh$28,780,840; agricultural sector entities for ThCh$5,575,971; and other for ThCh$5,712,278.

(2) For the year ended December 31, 2014, includes services for construction of junctions for ThCh$14,189,316; tolls from concessions ThCh$10,531,493; works in specific facilities and networks for ThCh$20,399,104; and other services for ThCh$9,891,127. For the year ended December 31, 2013, includes services for construction of junctions for ThCh$14,273,568; tolls from concessions for ThCh$10,283,929; works in specific facilities and networks for ThCh$16,462,850; and other services for ThCh$12,633,583.

F-204

(3) Mainly related to indemnifications received from third-party for breach of contracts of ThCh$23,721,999 for the year ended December 31, 2014 (ThCh$12,943,564 for the year ended December 31, 2013) and revenues from trading commodity derivatives for ThCh$2,549,925 for the year ended December 31, 2014.

28. RAW MATERIALS AND CONSUMABLES USED

The detail of raw materials and consumables used presented in profit or loss for the years ended December 31, 2014 and 2013 is as follows:

Raw Materials and Consumables Used	For the years ended
	12-31-2014  ThCh$			12-31-2013  ThCh$
Energy purchases		(788,420,653	)		(568,466,950	)
Fuel consumption		(305,480,260	)		(211,612,174	)
Transportation costs		(151,948,779	)		(182,821,321	)
Other raw materials and consumables		(63,552,591	)		(36,003,533	)
Total		(1,309,402,283	)		(998,903,978	)

29. EMPLOYEE BENEFITS EXPENSE

Employee expenses recognized in profit or loss for the years ended December 31, 2014 and 2013 are as follows:

Employee Benefits Expense	For the years ended
	12-31-2014  ThCh$			12-31-2013  ThCh$
Wages and salaries		(113,865,986	)		(108,318,816	)
Post-employment benefit obligations expense		(2,309,999	)		(1,476,129	)
Social security and other contributions		(10,165,378	)		(10,318,957	)
Total		(126,341,363	)		(120,113,902	)

30. DEPRECIATION, AMORTIZATION AND IMPAIRMENT LOSSES

The detail of depreciation, amortization and impairment losses recognized for the years ended December 31, 2014 and 2013 are as follows:

	For the years ended
	12-31-2014  ThCh$			12-31-2013  ThCh$
Depreciation		(122,483,044	)		(113,756,076	)
Amortization		(5,954,110	)		(5,751,042	)
Subtotal		(128,437,154	)		(119,507,118	)
Impairment losses (*)		(13,185,420	)		(8,212,948	)
Total		(141,622,574	)		(127,720,066	)

(*) Impairment Losses	For the years ended
	12-31-2014			12-31-2013
	ThCh$			ThCh$
Impairment losses of financial assets (See Note 9. c))		(655,600	)		(7,940,767	)
Impairment losses of property, plant and equipment (See Note 17)		(12,529,820	)		(272,181	)
Total		(13,185,420	)		(8,212,948	)

F-205

31. OTHER EXPENSES

Other miscellaneous operating expenses for the years ended December 31, 2014 and 2013 are as follows:

Other Expenses	For the years ended
	12-31-2014 ThCh$			12-31-2013 ThCh$
Other supplies and services		(15,630,380	)		(14,484,587	)
Professional, outsourced and other services		(44,418,344	)		(44,861,997	)
Repairs and maintenance		(11,867,380	)		(10,236,117	)
Indemnities and fines		(781,069	)		(5,908,646	)
Taxes and charges		(6,239,456	)		(10,442,697	)
Insurance premiums		(12,212,488	)		(9,851,988	)
Leases and rental costs		(6,734,776	)		(8,043,094	)
Marketing, public relations and advertising		(3,765,455	)		(3,869,225	)
Other supplies		(1,781,536	)		(1,121,835	)
Travel expenses		(4,153,233	)		(3,317,758	)
Environmental expenses		(2,870,098	)		(2,414,784	)
Total		(110,454,215	)		(114,552,727	)

32. OTHER GAINS (LOSSES)

Other gains (losses) for the years ended December 31, 2014 and 2013 are as follows:

Other Gains (Losses)	For the years ended
	12-31-2014 ThCh$			12-31-2013 ThCh$
Gain on sale of investment properties (1)		7,556,574			12,195,531
Gain from remeasuring the pre-existing interest held in Inversiones GasAtacama Holding Ltda. (3)		21,546,320			—
Recognition of translation difference on pre-existing interest held in Inversiones GasAtacama Holding Ltda. (3)		21,006,456			—
Gain on sale of equity interest in Maitenes y Aguas Santiago Poniente (2)		21,077,900			—
Gain on sale of Charrua transmission lines		—			2,532,438
Other		(293,987	)		(200,232	)
Total		70,893,263			14,527,737

(1) See Note 18

(2) See Note 2.4.1

(3) See Note 5.e

33. FINANCIAL RESULTS

Financial income and costs for the years ended December 31, 2014 and 2013 are as follows:

Financial Income	For the years ended
	12-31-2014 ThCh$		12-31-2013 ThCh$
Income from deposits and other financial instruments		2,813,132		2,738,938
Other financial income		11,949,383		10,911,593
Total		14,762,515		13,650,531

F-206

Financial Costs	For the years ended
	12-31-2014 ThCh$			12-31-2013 ThCh$
Financial costs		(75,626,489	)		(69,768,634	)
Bank loans		(619,079	)		(1,220,055	)
Secured and unsecured obligations		(48,046,358	)		(46,713,612	)
Financial leasing		(989,288	)		(936,487	)
Valuation of financial derivatives		(2,634,032	)		(4,380,154	)
Financial provisions		(1,049,996	)		(1,141,883	)
Post-employment benefit obligations		(2,139,043	)		(2,197,469	)
Capitalized borrowing costs		1,817,283			998,984
Other financial costs		(21,965,975	)		(14,177,958	)
Gains (losses) from indexed assets and liabilities (*)		15,263,623			1,593,046
Foreign currency exchange differences (**)		(21,444,198	)		(1,838,329	)
Total financial costs		(81,807,064	)		(70,013,917	)
Total financial results		(67,044,549	)		(56,363,386	)

The effects on financial results from exchange differences and the application of indexed assets and liabilities originated from the following:

Gains (losses) from Indexed Assets and Liabilities (*)	For the years ended
	12-31-2014 ThCh$			12-31-2013 ThCh$
Cash and cash equivalents		—			—
Other financial assets		23,240,913			4,732,150
Other non-financial assets		115,593			13,669
Trade and other receivables		185,459			273,757
Current tax assets and liabilities		9,415,017			2,950,060
Other financial liabilities (financial debt and derivative instruments)		(17,623,602	)		(6,428,168	)
Trade and other payables		(3,757	)		8,563
Other provisions		(66,000	)		(12,564	)
Other non-financial liabilities		—			55,579
Total		15,263,623			1,593,046

Foreign Currency Exchange Differences (**)	For the years ended
	12-31-2014 ThCh$			12-31-2013 ThCh$
Cash and cash equivalents		385,881			1,787,955
Other financial assets		(23,775,272	)		150,051
Other non-financial assets		23,905			37,634
Trade and other receivables		2,580,400			(3,570,513	)
Current tax assets and liabilities		(1,076,322	)		(3,678	)
Other financial liabilities (financial debt and derivative instruments)		(2,694,805	)		(1,511,102	)
Trade and other payables		3,841,715			1,537,678
Other non-financial liabilities		(729,700	)		(266,354	)
Total		(21,444,198	)		(1,838,329	)

F-207

34. INCOME TAXES

The following table presents the components of the income tax expense/(benefit) for the years ended December 31, 2014 and 2013:

Current Income Tax and Adjustments to Current Income Tax for Previous Periods	For the years ended
	12-31-2014 ThCh$			12-31-2013 ThCh$
Current income tax		(75,830,800	)		(49,623,371	)
Tax benefit from tax losses, tax credits or temporary differences not previously recognized for the current period (current tax credits and/or benefits)		—			1,698,566
Adjustments to current tax from the previous period		(7,073,017	)		(224,922	)
(Benefit) / expense for current income tax due to changes in tax rates or the introduction of new taxes		(4,245,607	)
Other current tax benefit / (expense)		(3,302,113	)		(9,826,652	)
Current tax expense, net		(90,451,536	)		(57,976,379	)
(Benefit) / expense from deferred taxes for origination and reversal of temporary differences		22,315,523			(3,736,062	)
(Benefit) / expense from deferred taxes due to changes in tax rates or the introduction of new taxes (*)		(64,551,120	)		—
Other components of deferred tax (benefit) /expense		—			—
Total deferred tax benefit / (expense)		(42,235,597	)		(3,736,062	)
Income tax expense, continuing operations		(132,687,133	)		(61,712,442	)

(*) See Note 19 c), d) and e).

The following table reconciles income taxes resulting from applying the local current tax rate to “Net income before taxes” and the actual income tax expense recorded in the accompanying combined statement of comprehensive income for the years ended December 31, 2014 and 2013:

Reconciliation of Tax Expense	Rate			12-31-2014 ThCh$			Rate			12-31-2013 ThCh$
ACCOUNTING INCOME BEFORE TAX					332,246,550						374,096,957
Total tax income (expense) using statutory rate		(21.00	%)		(69,771,775	)		(20.00	%)		(74,819,391	)
Tax effect of non-taxable revenues		4.43	%		14,714,272			3.50	%		13,092,926
Tax effect of non-tax-deductible expenses		(4.12	%)		(13,691,638	)		(2.21	%)		(8,256,436	)
Tax effect of changes in income tax rates (*)		(20.71	%)		(68,796,727	)		—			—
Tax effect of adjustments to taxes in previous periods		(2.13	%)		(7,073,017	)		(0.06	%)		(224,922	)
Price level restatement for tax purposes (investments and equity)		3.59	%		11,931,752			2.27	%		8,495,382
Total adjustments to tax expense using statutory rate		(18.94	%)		(62,915,358	)		3.50	%		13,106,949
Income tax benefit (expense), continuing operations		(39.94	%)		(132,687,133	)		(16.50	%)		(61,712,442	)

(*) The principal temporary differences are detailed in Note 19a.

F-208

35. INFORMATION BY SEGMENT

35.1 Basis of segmentation criteria

Since Enersis Chile has not yet been established as a legal entity, no chief operating decision maker exists for this Combined Group. Consequently, the Combined Group does not yet have any operating segments as the term is defined under IFRS 8 Operating Segments. Information provided in this note includes segments as they are supposed to be analyzed by the chief operating decision maker upon appointment of the latter.

The Combined Group’s activities are organized primarily around its core businesses: electric energy generation and distribution. On that basis, the Combined Group has established two major business lines.

Considering presents the differentiated information that is analyzed by the Combined Group’s chief operating decision maker, segment information has been organized by its core business.

Given that the Combined Group’s corporate organization basically matches its business organization and, therefore, the segments, the following information is based on the financial information of the companies forming each segment. The accounting policies used to determine the segment information are the same as those used in the preparation of the Combined Group’s combined financial statements.

F-209

The following tables present details of this information by segment:

35.2 Generation, distribution and others

Line of Business	Generation						Distribution									Eliminations and Others									Total
ASSETS	12-31-2014 ThCh$		12-31-2013 ThCh$		1-1-2013 ThCh$		12-31-2014 ThCh$			12-31-2013 ThCh$			1-1-2013 ThCh$			12-31-2014 ThCh$			12-31-2013 ThCh$			1-1-2013 ThCh$			12-31-2014 ThCh$			12-31-2013 ThCh$			1-1-2013 ThCh$
CURRENT ASSET		514,223,177		428,962,509		352,513,040		283,754,811			166,075,023			156,993,644			44,885,510			159,680,654			104,755,778			842,863,498			754,718,186			614,262,462
Cash and cash equivalents		38,186,573		37,549,246		4,324,607		4,867,106			11,423,687			4,290,415			89,932,248			165,934,164			85,478,738			132,985,927			214,907,097			94,093,760
Other current financial assets		1,464,821		22,254,261		—		13,483			—			—			12,825			9,690			3,864			1,491,129			22,263,951			3,864
Other current non-financial assets		10,766,654		2,104,086		5,343,847		4,837,555			1,793,463			2,458,642			443,398			921,541			741,556			16,047,607			4,819,090			8,544,045
Trade and other current receivables		317,250,689		145,121,585		142,288,734		257,567,489			149,399,519			146,523,590			3,263,027			8,459,529			13,392,532			578,081,205			302,980,633			302,204,856
Current accounts receivable from related companies		54,976,444		54,808,305		23,222,928		12,867,310			935,683			2,227,669			(50,891,104	)		(21,395,095	)		(31,730	)		16,952,650			34,348,893			25,418,867
Inventories		36,871,184		14,662,965		30,054,548		3,542,452			2,516,897			1,452,915			3,264,242			4,835,162			4,315,432			43,677,878			22,015,024			35,822,895
Current tax assets		44,701,760		152,462,061		147,278,376		59,416			5,774			40,413			886,963			915,663			855,386			45,648,139			153,383,498			148,174,175
Non-current assets classified as held for sale and discontinued operations		10,005,052		—		—		—			—			—			(2,026,089	)		—			—			7,978,963
NON-CURRENT ASSETS		2,722,809,246		2,489,410,473		2,465,776,586		698,940,269			658,527,961			631,050,104			862,121,732			917,735,601			907,341,563			4,283,871,247			4,065,674,035			4,004,168,253
Other non-current financial assets		6,719,853		2,759,880		31,436,192		30,619			22,728			25,110			—			—			114,231			6,750,472			2,782,608			31,575,533
Other non-current non-financial assets		42,847		42,847		42,847		188,156			319,504			333,644			4,427			4,426			4,426			235,430			366,777			380,917
Trade and other non-current receivables		—		—		—		7,364,934			6,055,190			6,863,062			131,478			819,844			685,327			7,496,412			6,875,034			7,548,389
Non-current accounts receivable from related companies		—		—		5,712,830		—			—			—			—			—			—			—			—			5,712,830
Investments accounted for using equity method		40,365,323		214,426,175		178,127,840		53,525			1,014			13,824			(53,525	)		(1,013	)		79,087			40,365,323			214,426,176			178,220,751
Intangible assets other than goodwill		18,851,913		14,551,065		12,617,054		14,613,951			13,175,169			13,233,744			3,059,658			9,844,571			12,111,431			36,525,522			37,570,805			37,962,229
Goodwill		24,860,356		4,656,105		4,656,105		2,240,478			2,240,478			2,240,478			860,156,821			860,156,821			860,156,821			887,257,655			867,053,404			867,053,404
Property, plant and equipment		2,621,113,892		2,249,838,283		2,209,465,780		674,156,508			636,528,765			608,238,796			(11,509,624	)		(5,896,413	)		(6,958,282	)		3,283,760,776			2,880,470,635			2,810,746,294
Investment property		—		—		—		—			—			—			8,514,562			44,877,049			46,922,970			8,514,562			44,877,049			46,922,970
Deferred tax assets		10,855,062		3,136,118		23,717,938		292,098			185,113			101,446			1,817,935			7,930,316			(5,774,448	)		12,965,095			11,251,547			18,044,936
TOTAL ASSETS		3,237,032,423		2,918,372,982		2,818,289,626		982,695,080			824,602,984			788,043,748			907,007,242			1,077,416,255			1,012,097,341			5,126,734,745			4,820,392,221			4,618,430,715
Line of Busines	Generation						Distribution									Eliminations and others									Total
LIABILITIES AND EQUITY	31-12-2014 M$		31-12-2013 M$		31-12-2012 M$		31-12-2014 M$			31-12-2013 M$			31-12-2012 M$			31-12-2014 M$			31-12-2013 M$			31-12-2012 M$			31-12-2014 M$			31-12-2013 M$			31-12-2012 M$
CURRENT LIABILITIES		680,402,981		688,536,858		557,297,199		261,250,997			224,908,034			195,486,556			(21,570,283	)		14,685,579			(119,861,378	)		920,083,695			928,130,471			632,922,377
Other current financial liabilities		146,364,103		124,569,707		217,913,907		133			198			47			123			2,693,949			2,442,955			146,364,359			127,263,854			220,356,909
Trade and other current payables		332,677,495		226,132,161		137,457,760		116,345,087			91,431,160			100,344,207			46,338,773			40,767,675			36,557,164			495,361,355			358,330,996			274,359,131
Current account payables to related companies		142,780,113		268,360,036		154,709,619		128,880,543			107,731,967			79,928,373			(84,475,463	)		(38,920,067	)		(167,746,328	)		187,185,193			337,171,936			66,891,664
Other current provisions		10,932,577		27,490,145		23,357,509		68,028			8,600,066			9,036,796			622,909			8,548,861			6,258,482			11,623,514			44,639,072			38,652,787
Current tax liabilities		31,480,257		41,456,080		23,323,179		4,501,006			16,608,698			4,660,597			2,376,603			1,368,741			2,090,150			38,357,866			59,433,519			30,073,926
Current provisions for employee benefits		—		—		—		—			—			—			—			—			—			—			—			—
Other current non-financial liabilities		16,168,436		528,729		535,225		11,456,200			535,945			1,516,536			8,078,625			226,420			536,199			35,703,261			1,291,094			2,587,960
Liabilities associated with current assets classified as held for sale and discontinued operations		—		—		—		—			—			—			5,488,147			—			—			5,488,147
NON-CURRENT LIABILITIES		1,060,586,955		771,080,512		874,469,705		51,025,398			43,620,083			46,976,282			10,972,906			11,777,166			744,882			1,122,585,259			826,477,761			922,190,869
Other non-current financial liabilities		778,135,167		574,924,356		649,653,793		—			—			—			—			4,479,250			7,027,436			778,135,167			579,403,606			656,681,229
Trade and other non-current payables		3,711,078		—		—		—			—			—			—			—			—			3,711,078			—			—
Non-current accounts payable to related companies		—		—		—		—			—			—			—			—			—			—			—			—
Other non-current provisions		25,161,118		17,426,844		16,545,029		2,808,817			6,556,807			8,738,743			—			—			—			27,969,935			23,983,651			25,283,772
Deferred tax liabilities		232,085,097		159,982,265		183,460,069		23,069,096			16,824,414			16,134,512			68,473			94,542			(12,282,837	)		255,222,666			176,901,221			187,311,744
Non-current provisions for employee benefits		18,537,036		15,072,071		14,234,207		24,497,162			19,266,073			18,670,336			10,903,644			7,157,468			5,937,794			53,937,842			41,495,612			38,842,337
Other non-current non-financial liabilities		2,957,459		3,674,976		10,576,607		650,323			972,789			3,432,691			789			45,906			62,489			3,608,571			4,693,671			14,071,787
Equity		1,496,042,487		1,458,755,612		1,386,522,722		670,418,685			556,074,867			545,580,910			917,604,619			1,050,953,510			1,131,213,837			3,084,065,791			3,065,783,989			3,063,317,469
Equity attributable to Enersis Chile		1,496,042,487		1,458,755,612		1,386,522,722		670,418,685			556,074,867			545,580,910			917,604,619			1,050,953,510			1,131,213,837			2,472,201,434			2,438,837,368			2,457,765,242
Allocated capital		619,260,333		619,260,333		619,260,333		230,492,200			230,492,200			230,492,200			1,379,356,442			1,388,416,735			296,069,473			2,229,108,975			2,238,169,268			1,145,822,006
Retained earnings		829,887,035		793,646,805		717,268,643		767,602,864			709,899,378			642,695,159			(425,518,222	)		(423,013,206	)		(430,108,903	)		1,171,971,677			1,080,532,977			929,854,899
Other reserves		46,895,119		45,848,474		49,993,746		(327,676,379	)		(384,316,711	)		(327,606,449	)		(36,233,601	)		85,549,981			1,265,253,267			(928,879,218	)		(879,864,877	)		382,088,337
Non-controlling interests		—		—		—		—			—			—			—			—		��	—			611,864,357			626,946,621			605,552,227
Total Liabilities and Equity		3,237,032,423		2,918,372,982		2,818,289,626		982,695,080			824,602,984			788,043,748			907,007,242			1,077,416,255			1,012,097,341			5,126,734,745			4,820,392,221			4,618,430,715

The eliminations column corresponds to transactions between companies in different lines of business and country, primarily purchases and sales of energy and services.

F-210

Line of Business	Generation						Distribution						Elimination and Others						Total
STATEMENT OF COMPREHENSIVE INCOME	12-31-2014 ThCh$			12-31-2013 ThCh$			12-31-2014 ThCh$			12-31-2013 ThCh$			12-31-2014 ThCh$			12-31-2013 ThCh$			12-31-2014 ThCh$			12-31-2013 ThCh$
REVENUES AND OTHER OPERATING INCOME	1,220,566,158			959,786,924			1,127,892,544			975,023,631			(299,393,417)			(196,727,678)			2,049,065,285			1,738,082,877
Revenues		1,199,341,011			958,039,403			1,116,092,610			959,692,208			(300,569,723	)		(198,164,895	)		2,014,863,898			1,719,566,716
Energy sales		1,155,805,379			860,581,278			997,836,084			842,753,580			(267,340,580	)		(186,457,552	)		1,886,300,883			1,516,877,306
Other sales		11,062,697			25,273,582			7,396,980			7,963,873			8,218,070			4,128,460			26,677,747			37,365,915
Other services rendered		32,472,935			72,184,543			110,859,546			108,974,755			(41,447,213	)		(15,835,803	)		101,885,268			165,323,495
Other operating income		21,225,147			1,747,521			11,799,934			15,331,423			1,176,306			1,437,217			34,201,387			18,516,161
RAW MATERIALS AND CONSUMABLES USED		(750,212,920	)		(494,891,538	)		(855,757,752	)		(712,458,219	)		296,568,389			208,445,779			(1,309,402,283	)		(998,903,978	)
Energy purchases		(288,442,686	)		(124,419,095	)		(766,324,946	)		(628,376,375	)		266,346,979			184,328,520			(788,420,653	)		(568,466,950	)
Fuel consumption		(305,475,422	)		(211,607,778	)		—			—			(4,838	)		(4,396	)		(305,480,260	)		(211,612,174	)
Transportation costs		(142,831,143	)		(149,447,930	)		(56,360,475	)		(57,958,728	)		47,242,839			24,585,337			(151,948,779	)		(182,821,321	)
Other miscellaneous supplies and services		(13,463,669	)		(9,416,735	)		(33,072,331	)		(26,123,116	)		(17,016,591	)		(463,682	)		(63,552,591	)		(36,003,533	)
CONTRIBUTION MARGIN		470,353,238			464,895,386			272,134,792			262,565,412			(2,825,028	)		11,718,101			739,663,002			739,178,899
Other work performed by the entity and capitalized		16,466,172			10,625,755			5,039,396			4,205,303			—			—			21,505,568			14,831,058
Employee benefit expenses		(64,466,875	)		(62,922,790	)		(31,386,273	)		(30,154,099	)		(30,488,215	)		(27,037,013	)		(126,341,363	)		(120,113,902	)
Other expenses		(65,464,992	)		(59,734,743	)		(63,527,130	)		(61,243,603	)		18,537,907			6,425,619			(110,454,215	)		(114,552,727	)
GROSS OPERATING RESULT		356,887,543			352,863,608			182,260,785			175,373,013			(14,775,336	)		(8,893,293	)		524,372,992			519,343,328
Depreciation and amortization expense		(98,700,534	)		(90,062,967	)		(27,377,925	)		(27,033,400	)		(2,358,695	)		(2,410,751	)		(128,437,154	)		(119,507,118	)
Impairment losses (reversals of impairment losses) recognized in profit or loss		(12,461,456	)		64,138			(776,091	)		(8,277,086	)		52,127			—			(13,185,420	)		(8,212,948	)
OPERATING INCOME		245,725,553			262,864,779			154,106,769			140,062,527			(17,081,904	)		(11,304,044	)		382,750,418			391,623,262
FINANCIAL RESULTS		(77,428,301	)		(73,737,083	)		8,282,495			1,201,395			2,101,257			16,172,302			(67,044,549	)		(56,363,386	)
Financial income		1,576,923			3,146,530			11,638,248			8,348,785			1,547,344			2,155,216			14,762,515			13,650,531
Financial costs		(72,106,182	)		(75,970,098	)		(4,109,576	)		(7,776,562	)		589,269			13,978,026			(75,626,489	)		(69,768,634	)
Profit (loss) from indexed assets and liabilities		14,341,214			1,220,366			632,973			558,758			289,436			(186,078	)		15,263,623			1,593,046
Foreign currency exchange differences		(21,240,256	)		(2,133,881	)		120,850			70,414			(324,792	)		225,138			(21,444,198	)		(1,838,329	)
Positive		17,473,317			6,200,002			194,226			73,179			1,966,549			1,113,874			19,634,092			7,387,055
Negative		(38,713,573	)		(8,333,883	)		(73,376	)		(2,765	)		(2,291,341	)		(888,736	)		(41,078,290	)		(9,225,384	)
Share of profit of associates accounted for using the equity method		(54,352,582	)		24,309,344			—			—			—			—			(54,352,582	)		24,309,344
Other gains (losses)		42,651,567			2,513,923			(392,778	)		(176,425	)		28,634,474			12,190,239			70,893,263			14,527,737
Gains (losses) from other investments		42,651,567			67,384			—			—			21,077,899			—			63,729,466			67,384
Gains (losses) on sale of property, plant and equipment		—			2,446,539			(392,778	)		(176,425	)		7,556,575			12,190,239			7,163,797			14,460,353
Income before tax		156,596,237			215,950,963			161,996,486			141,087,497			13,653,827			17,058,497			332,246,550			374,096,957
Income tax		(93,758,705	)		(36,937,826	)		(37,256,549	)		(26,867,652	)		(1,671,879	)		2,093,036			(132,687,133	)		(61,712,442	)
Net Income from continuing operations		62,837,532			179,013,137			124,739,937			114,219,845			11,981,948			19,151,533			199,559,417			312,384,515
Net income from discontinued operations																				—			—
NET INCOME		62,837,532			179,013,137			124,739,937			114,219,845			11,981,948			19,151,533			199,559,417			312,384,515
Net income attributable to:		62,837,532			179,013,137			124,739,937			114,219,845			11,981,948			19,151,533			199,559,417			312,384,515
Shareholders of Enersis																				162,459,039			229,526,660
Non-controlling interests																				37,100,378			82,857,855
Line of Business	Generation						Distribution						Elimination and Others						Total
STATEMENT OF CASH FLOWS	12-31-2014 ThCh$			12-31-2013 ThCh$			12-31-2014 ThCh$			12-31-2013 ThCh$			12-31-2014 ThCh$			12-31-2013 ThCh$			12-31-2014 ThCh$			12-31-2013 ThCh$
Cash flows from (used in) operating activities		239,770,586			303,203,744			37,181,550			137,848,565			(12,005,255	)		1,908,222			264,946,881			442,960,531
Cash flows from (used in) investing activities		(190,799,690	)		(66,993,838	)		(52,663,122	)		(57,340,634	)		54,724,341			18,209,414			(188,738,471	)		(106,125,058	)
Cash flows from (used in) financing activities		(49,531,606	)		(202,875,463	)		8,796,278			(73,380,728	)		(118,409,153	)		59,845,126			(159,144,481	)		(216,411,065	)

The eliminations column corresponds to transactions between companies in different lines of business and country, primarily purchases and sales of energy and services.

F-211

36. THIRD PARTY GUARANTEES, OTHER CONTINGENT ASSETS AND LIABILITIES, AND OTHER COMMITMENTS

36.1 Direct guarantees

Creditor Of Guarantee	Debtor		Type of Guarantee	Assets Committed				Outstanding balance as of							Guarantees Released
				Type	Currency	Carrying amount
	Company	Relationship						Currency	Dec-14		Dec-13		Jan-13		2015		Assets		2016		Assets		2017		Assets
Banco Santander (security agent)	G.N.L. Quintero	Associate	Pledge	Shares	ThCh$		—	ThCh$		—		102,302,517		97,034,059		—		—		—		—		—		—
Deutsche Bank /Santander Benelux	Enersis S.A.	Creditor	Deposit account	Deposit account	ThCh$		26,337,776	ThCh$		50,509,024		56,138,756		60,774,330		—		—		—		—		—		—
Citibank N.A.	Endesa Chile	Creidtor	Pledge	Deposit account	ThCh$		788,775	ThCh$		702,470		796,448		—		—		—		—		—		—		—

As of December 31, 2014 and 2013 and January 1, 2013, the Combined Group had future energy purchase commitments amounting to ThCh$9,578,942,757, ThCh$4,803,454,702, and ThCh$4,394,511,499, respectively.

36.2 Indirect guarantees

As of December 31, 2014 and 2013, and January 1, 2013, there are no indirect guarantees.

F-212

36.3 Lawsuits and Arbitration Proceedings

As of the date of these Combined Financial Statements, the most relevant contingent liabilities, for which no provisions have been recognized, involving Enersis Chile and its combined entities are as follows:

1. Law 25,561 on Public Emergency and Reform to the Currency System, enacted on January 6, 2002 by the Argentine authorities, voided certain provisions of the concession agreement of Enersis Chile’s combined entity Edesur. Law 25,561 also required that utility concession agreements be renegotiated within a reasonable timeframe to adjust them to the new conditions. However, the failure to renegotiate Edesur’s concession agreement prompted Enersis S.A., Chilectra S.A., Endesa Chile and Elesur S.A. (now Chilectra S.A.) (collectively, the “Claimants”) to file an arbitration petition in 2003 under the Treaty for the Promotion and Protection of Chilean-Argentine Investments before the International Center for Settlement of Investment Disputes (ICSID). The statement of claim principally requested that the ICSID declare the investment expropriated for an amount of US$ 1,306,875,960 (approximately ThCh$ 792,946,989), and seeking for the damages caused to the investment due to lack of fair and equitable treatment, in the amount of US$ 318,780,600 (approximately ThCh$193,420,129). The Claimants also seek, with respect to both claims, compounded annual interest of 6.9% per annum. The Claimants also claimed the sums resulting from the damages caused as from July 1, 2004. Finally, the Claimants also demanded US$ 102,164,683 (approximately ThCh$61,988,421) for Elesur S.A. (now Chilectra S.A.) due to a lower price received on the sale of its shares. In 2005, the Argentine authorities and Edesur signed a Letter of Understanding, in which the terms and conditions are established for amendments and supplements to the Concession Agreement, forecasting tariff modifications, first during a transitional period and then under a Integral Tariff Review, in which the conditions for an ordinary tariff period of 5 years will be set. The arbitration has been suspended since March 2006 in accordance with the terms of the Letter of Understanding, and the appointment of one of the arbitrators, to replace an arbitrator who resigned in 2010 has been suspended. As of December 31, 2014, the parties informed ICSID of their agreement to extend the suspension of the arbitration procedure for 12 months starting on the same date, informing also that any of the parties can request the renewal of the arbitration procedure with 30 calendar days prior notice.

2. In 2005, three lawsuits were filed against Endesa Chile, the Chilean Treasury and the Chilean Water Authority (DGA, in its Spanish acronym), which are currently being treated as a single proceeding, requesting that DGA Resolution No. 134, which established non-consumptive water rights in favor of Endesa Chile to build the Neltume hydroelectric power plant project be declared null as a matter of public policy, with compensation for damages. Alternatively, the lawsuits request the compensation for damages for the losses allegedly sustained by the plaintiffs due to the loss of their status as riparian owners along Pirihueico Lake, as well as due to the devaluation of their properties. The defendants have rejected these allegations, contending that the DGA Resolution complies with all legal requirements, and that the exercise of this right does not cause any detriment to the plaintiffs, among other arguments. The sums involved in these suits are undetermined. This case was joined with two other cases: the first one is captioned “Arrieta v. the State and Others” in the 9th Civil Court, docket 15279-2005 and the second is captioned “Jordán v. the State and Others,” in the 10th Civil Court, docket 1608-2005. With regard to these cases, an injunction has been ordered against entering into any acts and contracts concerning Endesa Chile’s water rights related to the Neltume project. On September 25, 2014, the Court of Law issued an unfavorable ruling against Endesa Chile that in essence declared the right to use water established by DGA Resolution No. 134 illegal and orders its cancellation in the corresponding Water Rights Register of the correspondent Real Estate Registrar. Endesa Chile filed an appeal and cassation resources with the Santiago Court of Appeals, which are still pending.

3. During 2010, three lawsuits for damages were filed against Endesa Chile by plaintiffs who alleged they were affected by the flooding of the Bio-Bio River in Region VIII of Chile. The plaintiffs sued Endesa Chile for losses caused by its deficient operation of the Ralco hydroelectric power plant during the flood. These three cases were joined, and a first instance ruling has been issued which denies the claim filed in all its parts. The ruling was appealed and such appeal has not yet been reviewed by the court. The plaintiffs are required to produce legal evidence proving the causal link between the operation of the Ralco hydroelectric

F-213

power plant during the floods and the damages that the plaintiffs claim they sustained as a result of deficient facility operation. On March 27, 2012, there was a first instance judgment filed, which rejected the claim filed in all its parts. The plaintiff filed an appeal on March 12, 2013, and the Court of Appeals ordered proceedings to supplement the judgment, since there were exceptions and defenses that were not resolved in the first instance judgment. On May 2, 2013, the first instance Court of Law filed a supplementary judgment, referring to the exceptions and defenses that were not resolved in the first initial judgment. On July 14, 2014, the Court of Appeals of Concepción rejected the appeal filed by the plaintiffs and confirmed the first ruling denying relief in the lawsuit. The plaintiffs filed an appeal with the Supreme Court, which is pending resolution. The amount involved in the three lawsuits currently pending against Endesa Chile is ThCh$14,610,043, which is covered by an insurance policy.

4. In July and September 2010, Ingeniería y Construcción Madrid S.A. and Transportes Silva y Silva Limitada, respectively, filed separate lawsuits against Endesa Chile and the DGA seeking to declare the annulment of DGA Resolution No. 134 that granted Endesa Chile’s water rights for the Neltume hydroelectric station. Similarly, Ingeniería y Construcción Madrid S.A. and Transportes Silva y Silva Limitada, respectively, each filed suits against DGA Resolution No. 732 that authorized the relocation of the collection point of such water rights, arguing its invalidity as a violation of public policy. Ultimately, the plaintiffs attempted to demand payment for their water rights located in the area of influence of the hydraulic works for the future Neltume hydroelectric station. Endesa Chile has rejected these claims, contending that the plaintiffs are engaging in wrongful prosecution to prevent the construction of the power plant in order to obtain monetary compensation. The evidentiary period of the complaint filed by Ingeniería y Construcción Madrid S.A. (Case No. 7036-2010) has expired, and the parties have been summoned to hear judgment. Regarding the other lawsuit (Case No. 6705-2010), requesting the annulment of DGA Resolution No. 732, on March 12, 2012 a ruling was issued that declared the proceeding as abandoned. On June 27, 2012, Ingeniería y Construcción Madrid, filed a similar claim before another Court of Law (Case C-15156-2012), in which the discussion period and the regular evidentiary period have ended, and only some expert testimony is pending. On November 26, 2014, the court considering the lack of agreement between the parties, designated an expert, who has not accepted the position to date.

With respect to the Transportes Silva y Silva Ltda lawsuit (Case No. 16025-2012), which contests DGA Resolution No. 134, the proceeding was declared abandoned. In another lawsuit (Case No. 17916-2010), a similar request was made for the action to be declared abandoned, however, this request was denied. The plaintiff filed an appeal against the ruling, which was decided on May 10, 2013, declaring the proceeding abandoned. The resolution is final and executed. The amount of this proceeding is undetermined.

5. On May 24, 2011, Endesa Chile was served with a lawsuit filed by 19 riparian owners along the Pirihueico Lake, seeking to nullify DGA Resolution No. 732, which authorized the relocation of water rights collection for the Neltume power plant, from the Pirihueico Lake drainage 900 meters downstream along Fui River. The plaintiffs seek to have this annulment annotated at the margin of the notarized instrument that memorialized DGA Resolution No. 732, which approved the transfer of the collection. The plaintiffs also seek to have the recording of the deed struck from the Water Rights Registry, if entered, and to require the Chilean Treasury, the DGA and Endesa Chile to pay damages to the plaintiffs as a result of the challenged DGA Resolution. The plaintiffs seek to reserve their right to indicate the type and amount of damages in a subsequent legal proceeding. The claim is for an undetermined amount because the plaintiffs have requested that damages be determined in another suit, once the DGA Resolution is nullified. The discussion period has ended and the evidence action has been issued, which when received by the parties was the object of a replacement appeal filed by the plaintiff and an annulment petition filed by Endesa Chile, both of which were denied. On August 20, 2013 a conciliation hearing was initiated, and is still pending to date.

Afterwards, hydraulic and appraisal expert analysis were carried out. The Santiago Court of Appeals’ resolution was also notified incorporating evidence, and Endesa Chile provided documentary evidence consisting of: (i) a law report drafted by Mr. Cristián Maturana M., (ii) a law report drafted by Mr. Luis S. Figueroa, (iii) an engineering report drafted by Mr. Guillermo Cabrera, and (iv) an update of a land

F-214

appraisal report on the zone farms drafted by Mr. Armando Illanes; Finally, other documents relative to the Environmental Impact Study (EIA, in its Spanish acronym) were provided, and testimonial evidence was presented both by Endesa Chile and by the plaintiffs. The regular and special evidentiary period has ended.

6. The arbitration proceeding being heard by the International Chamber of Commerce (the Chamber), under the framework of the Bocamina Thermal Power Plant Extension Project contract for the turnkey supply of a coal thermal generation plant, located in Coronel, Region VIII of Chile, executed in July 2007 between Endesa Chile and a consortium comprised of: Ingeniería y Construcción Tecnimont Chile Compañía Limitada, Tecnimont SpA, Tecnimont do Brasil Construção e Administração de Projetos Ltda., Slovenské Energetické Strojárne a.s. (SES) and Ingeniería y Construcción SES Chile Limitada, (the “Consortium”).

As a result of material breaches of the Consortium, for not finishing the works according to the terms and conditions agreed and within the time period stipulated in the contract and its supplementary documents, on October 16, 2012, Endesa Chile proceeded, strictly complying with the conditions authorized in the contract for such purpose, to collect the performance bonds, and in particular, those issued by Banco Santander Chile for US$93,992,554 (approximately ThCh$57,029,982) and the one from Credit Agricole for US$18,940,295 (approximately ThCh$11,492,024). To date, Endesa Chile has only been able to collect the performance bonds issued by Banco Santander Chile. Upon collection of the aforementioned performance bonds, Endesa Chile filed before the Chamber (Case 19015/CA) a request for arbitration to compel compliance with the contract plus compensation for damages, and, as an alternate request, termination of the contract with compensation for damages. In both cases, Endesa Chile reserved the right to file litigation regarding the amount and sum of the damages at a later stage. Endesa Chile based its claim on the serious non-compliance of the Consortium, including, among other material breaches: (i) material breach of the contractual date of the end of the works, (ii) the lack of payment to subcontractors and suppliers, which has forced Endesa Chile to take on part of their commitments to avoid a situation of total work stoppage, (iii) material breach of the schedule of intermediate control stages agreed to, (iv) breach of the “Open Book” delivery time period of the works, and (v) lack of compliance with safety and environmental standards agreed to and the administrative standards proscribed for managing the contract.

In turn, SES filed legal actions before the Chamber (Case 1924/CA) requesting that the collection of the performance bonds by Endesa Chile be declared illegal.

On January 4, 2013, Endesa Chile notified the Consortium of the early termination of the contract due to material breach of its obligations according to the terms of it.

In January 2013, SES and Tecnimont separately contested the request for arbitration filed by Endesa Chile and sued Endesa Chile. Tecnimont sued for approximately US$1,294 million (approximately ThCh$785,134,500) and SES sued for US$15 million (approximately ThCh$9,101,250). On March 26, 2013, Endesa Chile responded to the counterclaims and petitioned for their dismissal. The proceeding filed by SES (Case 1924/CA) was consolidated with the arbitration proceeding described above.

On June 21, 2013, upon request of the arbitration court, the bases of the procedural proposals or simultaneous procedure were filed by each of the parties in a clear and precise manner as well as their respective proposed schedules. On July 2, 2013, the procedural order that established the procedural rules whereby the proceeding will be conducted was approved. On December 2, 2013 the parties exchanged legal briefs. Endesa Chile requested in its brief that the arbitrational court find (i) the defendants in breach of the contract, (ii) the defendants’ breach was attributable to serious fraud or negligence on their part and (iii) that the contract termination be recognized as occurring due to the defendant’s breach. On the grounds stated above, Endesa Chile has asserted that the performance bonds are consistent with the law and petitioned the court to order the defendants to pay fines and damages amounting to US$373,269,376 (approximately ThCh$226,481,193). Tecnimont requested an extension in order to object the documents, which was accepted by the arbitrational court.

The parties submitted documents, against which objections were filed. For the arbitration court, the parties resolved the objections raised by replacing the documents or performing complementation if necessary. On May 2, 2014, the parties submitted briefs, and rebuttal is expected to occur by January 15, 2015.

F-215

7. On August 22, 2013, Endesa Chile, Pehuenche and San Isidro filed before the Santiago Court of Appeals a claim against the Chilean Superintendence of Electricity and Fuels (SEF). The claim asserts the illegality of Resolution ORD No. 7230, dated August 7, 2013, in which the SEF, relying on its interpretative and supervisory authority, decreed that consumption by distributing companies in excess of the contracted supply, with respect to electricity generators that are forced by means of a bid to supply electricity, must be covered by electricity surpluses generated by other companies. The distributors with surplus electricity can assign their surpluses to distributors with deficits, irrespective of the will of the respective generator. The claim asserts this is contrary to the law and exceeds SEF’s powers and authority, resulting in an illegal resolution.

An injunction was requested, which was denied in the San Isidro and Pehuenche suits but was granted in the Endesa Chile suit. As a result, the effects of the decree are suspended. The three claims were heard one after the other and the result were communicated to all the companies. On April 10, 2014, the claims were dismissed as having been filed outside of the period allowed by law. An appeal was filed against such resolution before the Chilean Supreme Court, which accepted the appeal on July 8, 2014 and found the claim was filed in a timely manner. The cases were remanded to the Santiago Court of Appeals to determine the validity of the claim, which are still pending of resolution.

8. In August 2013, the Chilean Superintendence of the Environment (SMA, in its Spanish acronym) filed charges against Endesa Chile alleging several violations of Exempt Resolution No. 206, dated August 2, 2007 and its supplementary and explanatory resolutions that environmentally certified the Bocamina Thermal Power Plant Extension Project. These alleged violations are related to the cooling system discharge channel, an inoperative Bocamina I desulphurizer, non-compliance with information delivery obligations, surpassing CO limits, failures in the acoustic perimeter fence of Bocamina I, excessive noise levels and having no technological barriers that prevent the massive entry of biomass in the intake of the central power plant. Endesa Chile submitted a compliance program that was not approved. On November 27, 2013, SMA added two additional violations to its charges. Endesa Chile presented its defense in December 2013, partially recognizing some of these violations (which could reduce the fine by 25% in case of recognition) and contesting the remainder. On August 11, 2014, SMA passed Resolution No. 421 that fined Endesa Chile 8,640.4 UTA for environmental non-compliances that are the subject matter of the sanctioning proceeding. Endesa Chile filed an illegality claim against the SMA before the Third Environmental Court of Valdivia that to date is pending resolution.

In December 2013, the fishermen’s and algae collector trade unions of Coronel, among others, filed two constitutional protection appeals against Endesa Chile before the Court of Appeals of Concepcion. The first appeal alleges Endesa Chile would be operating Unit II of the Bocamina thermal power plant without the proper environmental authorizations. The second appeal alleges that Endesa Chile would not have an operational desulphurizing plant for the operation of Unit I of the Bocamina thermal power plant. The first plaintiff obtained a temporary injunction that halted operation of Unit II of the Bocamina thermal power plant. Endesa Chile contested the injunction but was denied relief. Endesa Chile also presented its defense in both resources, providing the background for rejection. On May 29, 2014, the ruling was upheld that accepted the appeal and imposed a series of requirements designed to prevent the Bocamina thermal power plant from causing environmental damage. An appeal was filed against this judgment before the Chilean Supreme Court, with which on November 6, 2014 ruling was sentenced that although it confirms the appealed decision (i.e. it confirms the resolution that picked up the protection appeals it contains certain declarations that are favorable for the company). It recognizes that the Bocamina II thermal power plant has an Environmental Qualification Resolution (RCA), and the changes introduced in it must be approved through an Environmental Impact Study (EIA).

9. On May 12, 2014, Compañía Eléctrica Tarapacá S.A., (Celta) formally filed an arbitration claim against Compañía Minera Doña Inés de Collahuasi, requesting that the Arbitration Court of Law declare that through the contracts entered into in 1995 and 2001, the parties have established a long-term contractual relation, characterized by the economic balance that there must be in their reciprocal services supplied and that, due to the above, greater costs corresponding to the investment that must be made to comply with the

F-216

emission standard contained in DS (Supreme Decree) (MMA) No. 13, 2011 must be shared by the parties. Based on this, the defendant should start paying up to the maturity of the contract, a fixed monthly charge that as of March 31, 2020 amounts to US$72,275,000 (approximately ThCh$43,852,856) for the proportional part of the investments that the defendant must pay due to the Supreme Decree mentioned above.

The claim was notified on July 3, 2014. On August 8, 2014 Collahuasi contested Celta’s claim and filed a counterclaim against Celta requesting that the Court declare that Celta has violated the prohibition to call on as precedent what was agreed to in the modifications of the 2009 supply contracts, reserving the right to discuss and prove the amount of damages. On August 26, 2014, Celta filed its response to the main claim and contested the counterclaim. On September 11, 2014, Collahuasi filed its rejoinder to the main claim and its response to the counterclaim. On October 1, 2014, Celta filed its response to the counterclaim. Additionally, the Arbitration Judge formulated a questionnaire with questions separately to each one of the parties and also with common questions for both.

Once these were responded, the arbitrator gave the parties a deadline of January 16, 2015 to contest or observe the answers provided and the documents attached specifying the contrary.

36.4 Financial restrictions

As of December 31, 2014, we had no debt obligations and are therefore not affected by any covenants or events of default. However, a number of the Combined Group’s entities’ loan agreements, include the obligation to comply with certain financial ratios, which is normal in contracts of this nature. There are also affirmative and negative covenants requiring the monitoring of these commitments. In addition, there are restrictions in the events-of-default clauses of the agreements which require compliance.

1. Cross Default

Some of the financial debt contracts of Endesa Chile contain cross default clauses. The credit line agreements governed by Chilean law, which Endesa Chile signed in February 2013, stipulate that cross default arises only in the event of non-compliance by the borrower itself, with no reference made to its subsidiaries. In order to accelerate payment of the debt in these credit lines due to cross default originating from other debt, the amount overdue of a debt must exceed US$50 million, or the equivalent in other currencies, and other additional conditions must be met such as the expiry of grace periods. Since being signed, these credit lines have not been disbursed. They mature in February 2016. Endesa Chile’s international credit line governed by New York State law, which was signed in July 2014 and expires in July 2019, also makes no reference to its subsidiaries, so cross default arises only in the event of non-compliance by the borrower itself. For the repayment of debt to be accelerated under this facility due to cross default on another debt, the amount in default should exceed US$50 million or its equivalent in other currencies. It must also meet other conditions, including the expiration of any grace periods, and a formal notice of intent to accelerate the debt repayment must have been served by creditors representing more than 50% of the amount owed or committed in the contract. This line of credit has not currently been utilized.

Regarding the bond issues of Endesa Chile registered with the United States Securities and Exchange Commission (the SEC), commonly called “Yankee bonds”, a cross default can be triggered by another debt of the same company or of any of their subsidiaries, for any amount overdue provided that the principal of the debt giving rise to the cross default exceeds US$30 million or its equivalent in other currencies. Debt acceleration due to cross default does not occur automatically but has to be demanded by the holders of at least 25% of the bonds of a certain series of Yankee bonds. The Endesa Yankee bonds mature in 2015, 2024, 2027, 2037 and 2097. For the specific Yankee Bond that was issued in April 2014 and matures in 2024, the threshold for triggering cross default increased to US$50 million or its equivalent in other currencies.

The Endesa Chile bonds issued in Chile state that cross default can be triggered only by the default of the issuer when the amount in default exceeds US$50 million or its equivalent in other currencies. Debt acceleration requires the agreement of at least 50% of the holders of the bonds of a certain series.

F-217

2. Financial covenants

Financial covenants are contractual commitments with respect to minimum or maximum financial ratios that a company is obliged to meet at certain periods of time (quarterly, annually, etc.). Most of the financial covenants of the Combined Group limit the level of indebtedness and evaluate the ability to generate cash flows in order to service the companies’ debts. Various companies are also required to certify these covenants periodically. The types of covenants and their respective limits vary according to the type of debt.

The Endesa Chile bonds issued in Chile include the following financial covenants whose definitions and calculation formulas are established in the respective indentures based on Endesa Chile’s financial statements figures:

Series H

• Consolidated Debt Ratio: The consolidated debt ratio, which is Financial debt to Capitalization, must be no more than 0.64. Financial debt is the sum of interest-bearing loans, current; Interest-bearing loans, non-current; Other financial liabilities, current; Other financial liabilities, non-current; and Other obligations guaranteed by the issuer or its subsidiaries; while Capitalization is the sum of Financial liabilities, Equity attributable to the shareholders of Endesa Chile and Non-controlling interests. As of December 31, 2014, the ratio was 0.37.

• Consolidated Equity: A minimum Equity of Ch$760,468 million must be maintained; this limit is adjusted at the end of each year as established in the indenture. Equity corresponds to Equity attributable to the shareholders of Endesa Chile. As of December 31, 2014, the equity of Endesa Chile was Ch$1,475,571 million.

• Financial Expense Coverage: A financial expense coverage ratio of at least 1.85 must be maintained. Financial expense coverage is the quotient between i) the gross margin plus Financial income and dividends received from associated companies, and ii) Financial expenses; both items refer to the period of four consecutive quarters ending on the quarter being reported. For the period ended December 31, 2014, this ratio was 5.31.

• Net Asset Position with Related Companies: A Net asset position must be maintained with related companies of no more than a hundred million dollars. The Net asset position with related companies is the difference between i) the sum of Accounts receivable from related entities, current, Accounts receivable from related entities, non-current, less transactions in the ordinary course of business at less than 180 days term, short-term transactions of associates of Endesa Chile in which Enersis Chile has no participation, and long-term transactions of associates of Endesa Chile in which Enersis Chile has no participation; and ii) the sum of Accounts payable to related entities, current; Accounts payable to related entities, non-current, less transactions in the ordinary course of business at less than 180 days term; short-term transactions of associates of Endesa Chile in which Enersis Chile has no participation; and long-term transactions of associates of Endesa Chile in which Enersis Chile has no participation. As of December 31, 2014, using the exchange rate prevailing on that date, the Net asset position with related companies was a negative US$168.45 million, indicating that Enersis Chile is a net creditor of Endesa Chile rather than a net debtor.

Series M

• Consolidated Debt Ratio: The consolidated debt ratio, which is Financial debt to Capitalization, must be no more than 0.64. Financial debt is the sum of Interest-bearing loans, current; Interest-bearing loans, non-current; Other financial liabilities, current; and Other financial liabilities, non-current; while Capitalization is the sum of Financial liabilities, Equity attributable to the shareholders of Enersis and Non-controlling interests. As of As of December 31, 2014, the debt ratio was 0.37.

• Consolidated Equity: Same as for Series H.

• Financial Expense Coverage Ratio: Same as for Series H.

F-218

The rest of Endesa Chile’s debt and the undisbursed credit lines include other covenants such as leverage and debt coverage ratios (debt/EBITDA ratio), while the Yankee bonds are not subject to financial covenants.

The most restrictive financial covenant for Endesa Chile as of December 31, 2014 was the Debt Ratio requirement for the credit line under Chilean law, which expires in February 2016.

Lastly, in most of the contracts, debt acceleration for non-compliance with these covenants does not occur automatically but is subject to certain conditions, such as a cure period.

As of December 31, 2014 and 2013 and January 1, 2013, none of our combined entities were in default under their financial obligations summarized here or other financial obligations whose defaults might trigger the acceleration of their financial commitments.

36.5 Other Information

Centrales Hidroeléctricas de Aysén, S.A.

On July 9, 2014, the Ministers’ Committee issued (i) Exempt Resolution 569 resolving the invalidation process, and (ii) Exempt Resolution 570 resolving the claims filed by individuals, citizens’ organizations and the proponent of the Aysén Hydroelectric Project against Exempt Resolution 225/2011 issued by the Aysén del General Carlos Ibañez del Campo Region’s Assessment Committee, the project’s Environmental Qualification Resolution, or RCA.

Centrales Hidroeléctricas de Aysén S.A. was notified of these agreements and resolutions on July 14, 2014.

On January 28, 2015, Endesa Chile was informed that the request of water rights made by Centrales Hidroeléctricas de Aysén S.A. (hereinafter “HidroAysén”) in 2008, was partially denied. Endesa Chile expressed its intention to continue to defend the water rights and the environmental qualification granted to the project in the corresponding instances, by continuing legal actions already initiated or implementing new administrative or judicial actions for this purpose. Endesa Chile maintains the conviction that the hydraulic resources of Aysén region are important for the energy development of the country.

However, in the current situation, there is uncertainty about the recoverability of the investment made so far in HidroAysén, since it depends on both judicial decisions and definitions on matters that are in the energy agenda which cannot be foreseen at present. Consequently, the project is not part of the immediate projects of Endesa Chile’s portfolio. As a consequence, Endesa Chile decided to register an impairment of Ch$ 69,066 million (approximately US$ 121 million) for its participation in HydroAysén S.A., which affected the company’s 2014 year end net income (See Note 14.1.a). The financial and accounting effects for Enersis of this impairment registered by Endesa Chile resulted into a charge against the net results of Enersis of Ch$ 41,426 million (approximately US$ 73 million).

37. SANCTIONS

The following companies belonging to the Combined Group have received sanctions from the administrative authorities:

a) Subsidiaries

1. – Endesa Chile

• Income for fiscal year 2011: the Chilean Internal Revenue Service (SII) issued a fine after investigating the use of a credit for taxes paid abroad on income earned in other countries. The investigation found discrepancies in the calculation of net income from foreign sources, and a tax credit for a lower amount should have been used for that foreign income than declared at the time on the fiscal year 2011 income tax return. A fine of Ch$82,923,124 was imposed.Closed and paid(May 2014).

• During fiscal year 2011, the company was fined 1,380 UTA (Annual Tax Units) (approximately ThCh$683,315) by the Superintendence of Electricity and Fuels (SEF) for the blackout that occurred on March 14, 2010. Endesa Chile filed an appeal against the measure with the Santiago Court of

F-219

Appeals, which rejected the appeal on January 18, 2013 and upheld the fine. Endesa Chile then filed an appeal against this ruling with the Supreme Court who, on November 20, 2013, rejected the second appeal and once again upheld the fine, but reduced its amount to 1,246 UTA (approximately ThCh$616,964).

Closed and paid.

• In the 2012 fiscal year, the Company received a fine, plus interest, totaling ThCh$13,151 from the SII for the excessive use of tax credits for the 2010 tax year. The amount was paid on March 28, 2013.

Closed and paid.

• During the 2012 fiscal year, the Company was fined 1,200 UTA by the SEF for the blackout that occurred on September 24, 2011. Endesa Chile filed a request for reconsideration with the SEF; this was denied in Exempt Resolution 703 of March 25, 2013, which also upheld the fine. The company later filed appeal No. 2262-2013 challenging the ruling with the Santiago Court of Appeals. After studying the appeal, the Court of Appeals confirmed the fine imposed by the SEF but reduced it from 1,200 to 400 UTA. Endesa Chile filed another appeal against this ruling with the Supreme Court, which upheld the ruling and kept the fine at 400 UTA (approximately ThCh$203,059).

Closed and paid.

• In January 2013, Endesa Chile was notified of SEF Exempt Resolution 2496 fining the company 10 UTA (approximately ThCh$4,952) for violating Article 123 of Decree Law (DFL) 4/20,018 of 2006 due to its failure to report to the SEF the commissioning of its electricity facilities by the deadline provided for in that law. To clear the charges, Endesa Chile paid the fine in full.

Closed and paid.

• In the first quarter of 2013, Endesa Chile was notified of three resolutions issued by the Health SEREMI (Regional Ministerial Office) of the Maule Region, Resolutions 1057, 085, and 970, which ruled on health summary proceedings RIT Nos. 355/2011, 354/2011, and 256/2011, respectively, imposing a 20 UTM fine for each of the proceedings. The fines were imposed for the following violations: Resolution 1057 penalizes a health violation of Decree 594 of 1999, Regulations on Basic Health and Environmental Conditions in the Workplace, specifically, at the Cipreses Plant facilities; this fine has been paid in full. Resolution 085 penalizes a violation of Executive Decree 90/2011, which requires a statement of the emissions made in 2009 and 2010 by a 20.8-kW-capacity Siemens-Schukertwerke A6 power generator located at the Bocatoma Maule Isla facility. This resolution is currently being challenged. Resolution 970 penalizes a violation of Executive Decree 90/2011, which requires a statement of the emissions made in 2009 and 2010 by a 34 kW Conex generator located at the Bocatoma Maule Isla facility. This resolution is currently being challenged. Total: 60 UTA (approximately ThCh$2,592).

• Endesa Chile received notification in September 2013 of ORD No. 603 issued by the Superintendence of the Environment (SMA) initiating sanction proceedings and filing charges against Endesa Chile as Holder of the Expansion Project for Unit Two of the Bocamina Plant for a number of violations against environmental regulations and the RCA environmental regulation instrument. The sanction proceedings are the result of inspections conducted by SMA personnel on February 13 and 14 and on March 19, 26, and 27, 2013, at the Bocamina thermoelectric facilities. The inspections found a number of violations of Exempt Resolution 206 of August 2, 2007 (RCA 206/2007), which was clarified by Exempt Resolutions 229 of August 21, 2007 (RCA 229/2007) and 285 of October 8, 2007 (RCA 285/2007) giving environmental approval to this expansion project. The infractions consist primarily of (i) not having a discharge channel for the cooling system that extends 30 meters into the ocean from the edge of the beach; (ii) not having the Bocamina I desulfurization unit in operation; (iii) not submitting the information requested by the SMA’s official on past records of on-line emissions reports (CEM reports) from the startup of operations until the present time; (iv) exceeding the CO limit for Bocamina I set in the RCA for Bocamina II in January 2013; (v) defects and gaps between panels in the Bocamina I perimeter acoustic enclosure; (vi) noise emissions that exceed regulatory limits; and (vii) not having technological barriers that prevent biomass from pouring into the plant’s intake.

F-220

Endesa Chile submitted a compliance schedule within the time frame allotted, that was rejected. On November 27, 2013, the SMA reformulated the charges filed, adding two new charges (failure to comply with RCA 206/2007, considered a grave violation, and failure to comply with the information requirement issued in Ord UIPS 603, which is also considered a grave violation).

On August 11, 2014, the SMA issued Resolution No. 421 which penalized Endesa Chile for these environmental breaches applying a fine of 8,640.4 UTA (approximately ThCh$4,478,976). Endesa Chile filed a counter-claim of illegality before the Third Environmental Court of Valdivia, which is currently pending.

• The Labor Directorate (Inspección del Trabajo) of the Bío Bío Region fined Endesa ThCh$2,523 for failure to fulfill its duties as the operating company after confirming, on June 12, 2014, an accident suffered by a worker employed by the contractor Metalcav at the Bocamina II worksite. Payment of the fine is in process at this time.

Closed and paid.

• On May 20, 2014, the Valparaíso Court of Appeals confirmed the fine of ThCh$2,646 imposed by the Quintero Local Police Court (Juzgado de Policía Local) upholding CONAF’s claim that Endesa Chile cut trees without first having a forestry management plan approved by CONAF. The trees were cut in the Valle Alegre area in lot 22, site 3 in the municipality of Quintero in order to clear trees from the high voltage wires. The fine was paid through the appropriate court.

Closed and paid.

• On June 23, 2014, the SISS (Sanitary Services Superintendence) fined Endesa Chile 13 UTA (approximately ThCh$6,599) for discharging liquid waste from the San Isidro II thermal plant during the cooling process in excess of the amount permitted under D.S. 90 on sulfate concentration.

Closed and paid.

• In July 2014 the Coronel Labor Directorate fined Endesa Chile for labor legislation violations relating to staff serving at the Bocamina plant. The infringements are: i) exceeding the maximum of two hours overtime per day; ii) not allowing staff to rest on Sundays; iii) incorrectly recording attendance; iv) exceeding the maximum 10-hour working day. The fine imposed for these offenses totaled Ch$10,122,720, which the company has paid in full.

Closed and paid.

2. – Pehuenche

• During the 2011 fiscal year, Empresa Eléctrica Pehuenche S.A. was fined 602 UTA , or approximately ThCh$298,084 by the SEF for the blackout that occurred on March 14, 2010. Pehuenche filed an appeal against the measure with the Santiago Court of Appeals, which rejected the appeal on January 18, 2013 and upheld the fine. Pehuenche filed an appeal against this ruling with the Supreme Court, which rejected the appeal on November 20, 2013, and upheld the fine but reduced the amount to 421 UTA, approximately ThCh$208,461.

Closed and paid.

• On October 2, 2013, the Superintendence of Securities and Insurance (SVS) fined Empresa Eléctrica Pehuenche S.A. and its Chief Executive Officer for alleged violations of Article 54 of Law 18,046 “over the right of all shareholders to examine the annual report, balance sheet, inventory, minutes, ledgers, and external auditors’ reports during the 15 days prior to a company’s ordinary shareholders’ meeting.” It resolved the following:

“To impose on Empresa Eléctrica Pehuenche S.A. and its Chief Executive Officer, Lucio Castro Márquez, a fine of 150 UF each for violation of Article 54 of Law 18,046 and Article 61 of the Regulations on Corporations in effect at the time the events penalized occurred.”

The fine was applied as a result of a claim made by Tricahue Inversiones S.A. against Pehuenche based on the fact that, on April 24, 2012, the Tricahue S.A. Chief Executive Officer went to Pehuenche’s

F-221

offices to examine the minute book of the company’s Board of Directors and stated that he was first required to sign a statement of confidentiality and indemnity in Pehuenche’s favor, which he considered illegal and arbitrary.

On August 24, 2012, Tricahue Inversiones S.A. withdrew its complaint filed against Empresa Eléctrica Pehuenche S.A.

The company and its Chief Executive Officer, respectively, exercised the action provided for under Article 30 of Decree Law 3,538, within the conditions and time frame required, to file a claim against the SVS resolution with the ordinary courts of law to have the resolution revoked.

Finally, on May 20, 2014, the Court recognized the claim filed and revoked the sanction applied as groundless.

Closed.

3. – Chilectra

• Income for fiscal year 2012 (2011 business year): the SII fined Chilectra S.A. after an audit of the 2012 tax return which detected discrepancies in the determination of taxable net income, specifically in an amount deducted as a carryover loss. That entry had been adjusted as a result of audits of the entry corresponding to previous years, and it was lowered with respect to the amount declared at that time. Fine: Ch$114,291,807.

Closed and paid(June 2014).

• During the fiscal year 2012, Chilectra was sanctioned by the SEF with 19 fines amounting to ThCh$1,050,663.

• During the fiscal year 2013, Chilectra was sanctioned by the SEF with 7 fines amounting to ThCh$227,507.

• During the fiscal year 2014, Chilectra was sanctioned by the SEF with 8 fines amounting to ThCh$459,453.

b) Joint Ventures

1. – Transquillota

• During the 2012 fiscal year, Transquillota, in which Endesa Chile and Colbún each hold a 50% stake, was audited by the SII under an expense verification program, as the SII considers that certain entries such as depreciation of fixed assets were not properly handled. An administrative reconsideration for the Supervisory Review (RAF) was submitted explaining the differences. The SII accepted the company’s explanations and reduced the interest and fines payable to ThCh$19,208, which the company paid on March 27, 2013. Endesa Chile paid only 50% of the amount, or Thch$9,604.

• Closed and paid.

The Combined Group has not received any other fines from the SVS or from any other administrative authorities.

F-222

38. ENVIRONMENT

Environmental expenses for the years ended December 31, 2014 and 2013 are as follows:

Company Incurring the Cost	Project	12-31-2014 ThCh$		12-31-2013 ThCh$
Endesa Chile S.A.	Studies, monitoring, laboratory analysis, removal and final disposal of solid waste at hydroelectric power stations (HPS) and thermoelectric power stations.		1,894,105		1,996,818
Chilectra	Santa Elena Substation noise modeling, environmental consulting on the new Lo Aguirre-Cerro Navia line project, Santa Elena Substation noise mitigation project, ISO 14001 environmental compliance at substations, SpaceCab and preliminary assembly.		1,807,356		1,537,004
Chilectra	Hazardous waste management, pruning of trees and vegetation near high voltage, garden maintenance and weed removal at substations.		793,447		—
Total			4,494,908		3,533,822

F-223

39. FINANCIAL INFORMATION ON SUBSIDIARIES, SUMMARIZED

As of December 31, 2014 and 2013, summarized financial information of our principal combined entities prepared under IFRS and instructions from the SVS is as follows:

	12-31-2014
	Type of Financial Statements	Current Assets ThCh$		Non-current Assets ThCh$		Total Assets ThCh$		Current Liabilities ThCh$			Non-current Liabilities ThCh$			Total Liabilities ThCh$			Revenues ThCh$		Costs ThCh$			Profit (Loss) ThCh$			Other Comprehensive Income ThCh$			Total Comprehensive Income ThCh$
Grupo Chilectra S.A.	Combined		283,754,811		698,940,269		982,695,080		261,250,997			51,025,398			312,276,395			1,127,892,544		(855,757,752	)		124,727,499			(4,520,678	)		120,206,821
Grupo Inmobiliaria Manso de Velasco Ltda.	Combined		47,631,734		12,103,210		59,734,944		3,605,662			526,608			4,132,270			12,596,339		(2,146,800	)		24,014,775			(39,600	)		23,975,175
ICT Servicios Informáticos Ltda.	Separate		2,214,084		555,542		2,769,626		3,005,476			1,069,158			4,074,634			4,978,226		—			(1,367,466	)		(162,551	)		(1,530,017	)
Empresa Eléctrica Pehuenche S.A.	Separate		75,414,557		209,069,274		284,483,831		59,142,217			53,952,811			113,095,028			227,886,302		(34,362,209	)		143,162,280			(51,043	)		143,111,237
Compañía Eléctrica Tarapacá S.A.	Separate		77,067,775		450,573,978		527,641,753		110,849,007			30,918,614			141,767,621			318,959,142		(196,105,061	)		89,900,366			(604	)		89,899,762
Soc. Concesionaria Túnel El Melón S.A.	Separate		19,183,735		7,107,942		26,291,677		3,709,123			1,789,703			5,498,826			10,484,435		(3,751	)		5,830,719			(12,156	)		5,818,563
Grupo Endesa Chile	Combined		512,188,512		2,722,809,245		3,234,997,757		667,580,516			1,060,586,957			1,728,167,473			1,230,985,755		(750,216,671	)		129,068,163			(73,959,262	)		55,108,901
Grupo Inversiones GasAtacama Holding Ltda.	Combined		197,276,197		216,893,717		414,169,914		29,892,670			48,748,663			78,641,333			179,474,707		(99,313,387	)		29,364,528			51,288,697			80,653,225
	12-31-2013
	Type of Financial Statements	Current Assets ThCh$		Non-current Assets ThCh$		Total Assets ThCh$		Current Liabilities ThCh$			Non-current Liabilities ThCh$			Total Liabilities ThCh$			Revenues ThCh$		Costs ThCh$			Profit (Loss) ThCh$			Other Comprehensive Income ThCh$			Total Comprehensive Income ThCh$
Grupo Chilectra S.A.	Combined		166,075,023		658,527,962		824,602,985		(224,908,035	)		(43,620,084	)		(268,528,120	)		975,023,630		(860,816,204	)		114,207,426			(536,651	)		113,670,775
Grupo Inmobiliaria Manso de Velasco Ltda.	Combiend		28,152,699		38,156,192		66,308,891		(3,943,277	)		(460,705	)		(4,403,982	)		17,831,676		(8,884,221	)		8,947,455			(12,609	)		8,934,846
ICT Servicios Informáticos Ltda.	Separate		4,335,716		230,392		4,566,108		(3,866,062	)		(598,655	)		(4,464,717	)		5,445,388		(6,687,243	)		(1,241,856	)		(39,029	)		(1,280,885	)
Grupo Endesa Chile	Combined		429,600,069		2,499,417,477		2,929,017,546		(680,108,401	)		(775,680,337	)		(1,455,788,737	)		970,047,909		(784,881,857	)		185,166,052			(38,539,136	)		146,626,916
Endesa Eco S.A.	Separate		—		—		—		—			—			—			48,938,968		(24,522,864	)		24,416,104			(15,989	)		24,400,115
Empresa Eléctrica Pehuenche S.A.	Separate		33,988,505		217,379,509		251,368,014		(35,867,416	)		(41,936,800	)		(77,804,216	)		192,839,780		(78,347,987	)		114,491,793			(13,866	)		114,477,927
Compañía Eléctrica San Isidro S.A.	Separate		—		—		—		—			—			—			211,140,517		(157,918,033	)		53,222,484			—			53,222,484
Compañía Eléctrica Tarapacá S.A.	Separate		74,282,837		428,366,270		502,649,107		(173,508,052	)		(25,716,898	)		(199,224,950	)		74,083,557		(66,581,674	)		7,501,883			5,793			7,507,676
Soc. Concesionaria Túnel El Melón S.A.	Separate		12,248,481		10,007,003		22,255,484		(3,182,462	)		(4,599,826	)		(7,782,288	)		10,301,994		(4,155,242	)		6,146,752			9,435			6,156,187

40. SUBSEQUENT EVENTS

The accompanying combined financial statements reflect the combined operations of the Combined Group as it would have been incorporated following the spin-off, whose assumed date would have been January 1, 2013, and have been derived from historical financial information.

The combined financial statements reflect our evaluation of all events that have occurred subsequent to December 31, 2014 through November 30, 2015, which is the date that the combined financial statements are available to be issued.

F-224

APPENDIX 1. ENERSIS CHILE COMBINED GROUP ENTITIES

This appendix is part of Note 2.4, “Combined entities.”

It presents the Combined Group’s percentage of control in each company.

Taxpayer ID Number	Company	Currency	Percentage of control at 12/31/2014									Percentage of control at 12/31/2013									Percentage of control at 1/1/2013									Type of Relationship		Country		Activity
			Direct			Indirect			Total			Direct			Indirect			Total			Direct			Indirect			Total
96,773,290-7	Aguas Santiago Poniente S.A. (3)	Chilean peso		0.00	%		0.00	%		0.00	%		0.00	%		78.88	%		78.88	%		0.00	%		78.88	%		78.88	%		Subsidiary		Chile	Sanitation services
76,003,204-2	Central Eólica Canela S.A.	Chilean peso		0.00	%		75.00	%		75.00	%		0.00	%		75.00	%		75.00	%		0.00	%		75.00	%		75.00	%		Subsidiary		Chile	Promotion and development of renewable energy projects
99,573,910-0	Chilectra Inversud S.A.	Chilean peso		0.00	%		100.00	%		100.00	%		0.00	%		100.00	%		100.00	%		0.00	%		100.00	%		100.00	%		Subsidiary		Chile	Portfolio company
96,800,570-7	Chilectra S.A.	Chilean peso		99.08	%		0.01	%		99.09	%		99.08	%		0.01	%		99.09	%		99.08	%		0.01	%		99.09	%		Subsidiary		Chile	Ownership interest in companies of any nature
96,770,940-9	Compañía Eléctrica Tarapacá S.A.	Chilean peso		3.78	%		96.21	%		99.99	%		3.78	%		96.21	%		99.99	%		3.78	%		96.21	%		99.99	%		Subsidiary		Chile	Complete electric energy cycle
96,764,840-K	Constructora y Proyectos Los Maitenes S.A. (3)	Chilean peso		0.00	%		0.00	%		0.00	%		0.00	%		55.00	%		55.00	%		0.00	%		55.00	%		55.00	%		Subsidiary		Chile	Construction and facilities
96,783,910-8	Empresa Eléctrica de Colina Ltda.	Chilean peso		0.00	%		100.00	%		100.00	%		0.00	%		100.00	%		100.00	%		0.00	%		100.00	%		100.00	%		Subsidiary		Chile	Complete energy cycle and related supplies
96,504,980-0	Empresa Eléctrica Pehuenche S.A.	Chilean peso		0.00	%		92.65	%		92.65	%		0.00	%		92.65	%		92.65	%		0.00	%		92.65	%		92.65	%		Subsidiary		Chile	Complete electric energy cycle
91,081,000-6	Empresa Nacional de Electricidad S.A	Chilean peso		59.98	%		0.00	%		59.98	%		59.98	%		0.00	%		59.98	%		59.98	%		0.00	%		59.98	%		Subsidiary		Chile	Complete electric energy cycle
76,014,570-K	Inversiones GasAtacama Holding Ltda. (1)	U.S. dollar		0.00	%		100.00	%		100.00	%		0.00	%		50.00	%		50.00	%		0.00	%		50.00	%		50.00	%		Subsidiary		Chile	Natural gas transportation
96,830,980-3	GasAtacama S.A.	U.S. dollar		0.00	%		100.00	%		100.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		Subsidiary		Chile	Exploitation, generation, transmission and distribution of electric energy and natural gas
78,932,860-9	GasAtacama Chile S.A.	U.S. dollar		0.00	%		100.00	%		100.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		Subsidiary		Chile	Company management
77,032,280-4	Gasoducto TalTal S.A.	Chilean peso		0.00	%		100.00	%		100.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		Subsidiary		Chile	Natural gas transportation, sale and distribution
78,952,420-3	Gasoducto Atacama Argentina S.A.	U.S. dollar		0.00	%		100.00	%		100.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		Subsidiary		Chile	Natural gas exploitation and transportation
76,676,750-8	GNL Norte S.A.	Chilean peso		0.00	%		100.00	%		100.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		Subsidiary		Chile	Energy and fuel production, transportation and distribution
76,107,186-6	Servicios Informáticos e Inmobiliarios Ltda. (2)	Chilean peso		99.00	%		1.00	%		100.00	%		99.00	%		1.00	%		100.00	%		99.00	%		1.00	%		100.00	%		Subsidiary		Chile	Information Technology services
79,913,810-7	Inmobiliaria Manso de Velasco Ltda. (2)	Chilean peso		99.99	%		0.00	%		99.99	%		99.99	%		0.00	%		99.99	%		99.99	%		0.00	%		99.99	%		Subsidiary		Chile	Construction and works
96,800,460-3	Luz Andes Ltda.	Chilean peso		0.00	%		100.00	%		100.00	%		0.00	%		100.00	%		100.00	%		0.00	%		100.00	%		100.00	%		Subsidiary		Chile	Energy and fuel transportation, distribution and sales
96,905,700-K	Progas S.A.	Chilean peso		0.00	%		100.00	%		100.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		Subsidiary		Chile	Purchase, production, transportation and commercial distribution of natural gas
77,047,280-6	Sociedad Agrícola de Cameros Ltda.	Chilean peso		0.00	%		57.50	%		57.50	%		0.00	%		57.50	%		57.50	%		0.00	%		57.50	%		57.50	%		Subsidiary		Chile	Financial investments
96,671,360-7	Sociedad Concesionaria Túnel El Melón S.A.	Chilean peso		0.00	%		100.00	%		100.00	%		0.00	%		100.00	%		100.00	%		0.00	%		100.00	%		100.00	%		Subsidiary		Chile	Execution, construction and operation of the El Melón tunnel

(1) On April 22, 2014, Endesa Chile acquired the remaining 50% equity interest in Inversiones GasAtacama Holding Limitada, (See Note 5).

(2) On December 31, 2014, Inmobiliaria Manso de Velasco was merged with ICT, the latter being the legal successor company under the name of Servicios Informáticos e Inmobiliarios Ltda.

(3) On 30 December 2014, the companies Aguas Santiago Poniente SA and Constructora y Proyectos los Maitenes SA were sold.

F-225

APPENDIX 2. CHANGES IN THE SCOPE OF COMBINATION

This appendix is part of Note 2.4.1 “Changes in the scope of combination”.

Incorporation into the scope of combination:

	Ownership Interest
Company	December 31, 2014
	Direct			Indirect			Total			Consolidation Method
Inversiones GasAtacama Holding Ltda		0.00	%		100.00	%		100.00	%		Full integration
Atacama Finance Co. (1)		0.00	%		0.00	%		0.00	%		Full integration
Energex Co. (1)		0.00	%		0.00	%		0.00	%		Full integration
GasAtacama S.A.		0.00	%		100.00	%		100.00	%		Full integration
GasAtacama Chile S.A.		0.00	%		100.00	%		100.00	%		Full integration
Gasoducto TalTal S.A.		0.00	%		100.00	%		100.00	%		Full integration
GNL Norte S.A.		0.00	%		100.00	%		100.00	%		Full integration
Progas S.A.		0.00	%		100.00	%		100.00	%		Full integration

See Note 2.4.1.

(1) On 17 September 2014 the companies Atacama Finance Co and Energex Co were dissolved.

There were no incorporation of entites into the scope of combination as of December 31, 2013 and January 1, 2013.

Entities eliminated from the scope of combination:

	Ownership Interest
Company	December 31, 2014
	Direct			Indirect			Total			Consolidation Method
Aguas Santiago Poniente S.A.		0.00	%		78.88	%		78.88	%		Full integration
Constructora y Proyectos Los Maitenes S.A.		0.00	%		55.00	%		55.00	%		Full integration

There were no entities eliminated from the scope of combination as of December 31, 2013 and January 1, 2013.

F-226

APPENDIX 3. ASSOCIATED COMPANIES AND JOINT VENTURES

This appendix is part of Note 3.i, “Investments accounted for using the equity method”.

Taxpayer ID No.	Company (in alphabetical order)	Currency	Ownership Interest at 12/31/2014									Ownership Interest at 12/31/2013									Ownership Interest at 1/1/2013									Type of Relationship	Country	Activity
			Direct			Indirect			Total			Direct			Indirect			Total			Direct			Indirect			Total
96,806,130-5	Electrogas S.A.	U.S. dollar		0.00	%		42.50	%		42.50	%		0.00	%		42.50	%		42.50	%		0.00	%		42.50	%		42.50	%	Associate	Chile	Portfolio company
76,418,940-K	GNL Chile S.A.	Chilean peso		0.00	%		33.33	%		33.33	%		0.00	%		33.33	%		33.33	%		0.00	%		33.33	%		33.33	%	Associate	Chile	Promotion of liquefied natural gas supply project
76,788,080-4	GNL Quintero S.A.	U.S. dollar		0.00	%		20.00	%		20.00	%		0.00	%		20.00	%		20.00	%		0.00	%		20.00	%		20.00	%	Associate	Chile	Development, design and supply of liquid natural gas regasifying terminal
76,652,400-1	Centrales Hidroeléctricas De Aysén S.A.	Chilean peso		0.00	%		51.00	%		51.00	%		0.00	%		51.00	%		51.00	%		0.00	%		51.00	%		51.00	%	Joint venture	Chile	Development and operation of a hydroelectric plant
76,041,891-9	Aysén Transmisión S.A.	Chilean peso		0.00	%		51.00	%		51.00	%		0.00	%		51.00	%		51.00	%		0.00	%		51.00	%		51.00	%	Joint venture	Chile	Development and operation of a hydroelectric plant
76,091,595-5	Aysén Energía S.A.	Chilean peso		0.00	%		51.00	%		51.00	%		0.00	%		51.00	%		51.00	%		0.00	%		51.00	%		51.00	%	Joint venture	Chile	Development and operation of a hydroelectric plant
76,014,570-K	Inversiones GasAtacama Holding Ltda. (1)	U.S. dollar		0.00	%		0.00	%		0.00	%		0.00	%		50.00	%		50.00	%		0.00	%		50.00	%		50.00	%	Joint venture	Chile	Natural gas transportation
77,017,930-0	Transmisora Eléctrica de Quillota Ltda.	Chilean peso		0.00	%		50.00	%		50.00	%		0.00	%		50.00	%		50.00	%		0.00	%		50.00	%		50.00	%	Joint venture	Chile	Electric energy transportation and distribution

(1) On April 22, 2014, Endesa Chile acquired the remaining 50% equity interest in Inversiones GasAtacama Holding Limitada, (See Note 5).

F-227

APPENDIX 4. ADDITIONAL INFORMATION ON FINANCIAL DEBT

This appendix is part of Note 20, “Other financial liabilities.” The following tables present the contractual undiscounted cash flows by type of financial debt:

a) Bank borrowings

Summary of bank borrowings by currency and maturity

Country	Currency	Effective interest rate			Nominal interest rate			Current						Non-Current
								Maturity				Total Current 12/31/2014 ThCh$		Maturity										Total Non- Current 12/31/2014 ThCh$
								One to three months ThCh$		Three to Twelve months ThCh$				One to two years ThCh$		Two to three years ThCh$		Three to four years ThCh$		Four to five years ThCh$		More than five years ThCh$
Chile	US$		6.32	%		5.98	%		20,269		1,020,576		1,040,845		—		—		—		—		—		—
Chile	Ch$		5.60	%		5.60	%		714		—		714		—		—		—		—		—		—
									20,983		1,020,576		1,041,559		—		—		—		—		—		—

Country	Currency	Effective interest rate			Nominal interest rate			Current						Non-Current
								Maturity				Total Current 12/31/2013 ThCh$		Maturity										Total Non- Current 12/31/2013 ThCh$
								One to three months ThCh$		Three to Twelve months ThCh$				One to two years ThCh$		Two to three years ThCh$		Three to four years ThCh$		Four to five years ThCh$		More than five years ThCh$
Chile	US$		2.78	%		2.29	%		842,850		106,843,174		107,686,024		892,825		—		—		—		—		892,825
Chile	Ch$		5.67	%		5.67	%		119		—		119		—		—		—		—		—		—
									842,969		106,843,174		107,686,143		892,825		—		—		—		—		892,825

Country	Currency	Effective interest rate			Nominal interest rate			Current						Non-Current
								Maturity				Total Current 1/1/2013 ThCh$		Maturity										Total Non- Current 1/1/2013 ThCh$
								One to three months ThCh$		Three to Twelve months ThCh$				One to two years ThCh$		Two to three years ThCh$		Three to four years ThCh$		Four to five years ThCh$		More than five years ThCh$
Chile	US$		2.39	%		1.76	%		818,386		2,531,449		3,349,835		98,174,784		807,675		—		—		—		98,982,459
Chile	Ch$		4.90	%		4.90	%		371		—		371		—		—		—		—		—		—
									818,757		2,531,449		3,350,206		98,174,784		807,675		—		—		—		98,982,459

F-228

            Identification of bank borrowings by company

Taxpayer ID Number	Company	Country	Financial Institution	Country	Currency	Effective Interest Rate			Nominal Interest Rate			December 31, 2014
												Maturity						Maturity
												Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non- Current
96.800.570-7	Chilectra S.A.	Chile	Line of credit	Chile	Ch$		5.91	%		5.91	%		132		—		132		—		—		—		—		—		—
91.081.000-6	Endesa Chile S.A.	Chile	B.N.P. Paribas	U.S.A.	US$		6.32	%		5.98	%		20,269		1,020,576		1,040,845		—		—		—		—		—		—
91.081.000-6	Endesa Chile S.A.	Chile	Banco Santander	Chile	Ch$		6.00	%		6.00	%		582		—		582		—		—		—		—		—		—
													20,983		1,020,576		1,041,559		—		—		—		—		—		—

Taxpayer ID Number	Company	Country	Financial Institution	Country	Currency	Effective Interest Rate			Nominal Interest Rate				December 31, 2013
													Maturity						Maturity
													Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non- Current
96.800.570-7	Chilectra S.A.	Chile	Line of credit	Chile	Ch$		5.91	%		5.91	%			104		—		104		—		—		—		—		—		—
94.271.00-3	Enersis S.A.	Chile	Banco Santander Chile	Chile	Ch$		4.50	%		4.50	%			4		—		4		—		—		—		—		—		—
79.913.810-7	Manso de Velasco Ltda.	Chile	Banco Santander Chile	Chile	Ch$		6.00	%		6.00	%			4		—		4		—		—		—		—		—		—
91.081.000-6	Endesa Chile S.A.	Chile	B.N.P. Paribas	U.S.A.	US$		6.32	%		5.98	%			28,293		921,118		949,411		892,825		—		—		—		—		892,825
91.081.000-6	Endesa Chile S.A.	Chile	Banco Santander	Chile	Ch$		6.00	%		6.00	%			7		—		7		—		—		—		—		—		—
91.081.000-6	Endesa Chile S.A.	Chile	EDC	U.S.A.	US$		1.42	%		1.34	%			378,291		378,290		756,581		—		—		—		—		—		—
91.081.000-6	Endesa Chile S.A.	Chile	BBVA S.A.NY	U.S.A.	US$		1.56	%		0.99	%			436,266		105,543,766		105,980,032		—		—		—		—		—		—
														842,969		106,843,174		107,686,143		892,825		—		—		—		—		892,825
												��

Taxpayer ID Number	Company	Country	Financial Institution	Country	Currency	Effective Interest Rate			Nominal Interest Rate			Janaury 1, 2013
												Maturity						Maturity
												Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non- Current
96.800.570-7	Chilectra S.A.	Chile	Líneas de crédito bancarias	Chile	Ch$		6.60	%		6.60	%		46				46		—		—		—		—		—		—
94.271.00-3	Enersis S.A.	Chile	Banco Santander Chile	Chile	Ch$		2.10	%		2.10	%		53				53		—		—		—		—		—		—
91.081.000-6	Endesa Chile S.A.	Chile	B.N.P. Paribas	U.S.A.	US$		6.32	%		5.98	%		31,301		859,843		891,144		849,410		807,675		—		—		—		1,657,085
91.081.000-6	Endesa Chile S.A.	Chile	Export Development Corpotation Loan	U.S.A.	US$		1.82	%		1.73	%		347,952		354,206		702,158		689,651				—		—		—		689,651
91.081.000-6	Endesa Chile S.A.	Chile	Banco Bilbao Vizcaya Argentaria S.A.NY	U.S.A.	US$		1.72	%		1.12	%		439,133		1,317,400		1,756,533		96,635,723				—		—		—		96,635,723
91.081.000-6	Endesa Chile S.A.	Chile	Banco Santander Chile (Linea Crédito)	Chile	Ch$		6.00	%		6.00	%		272				272		—		—		—		—		—		—
													818,757		2,531,449		3,350,206		98,174,784		807,675		—		—		—		98,982,459

F-229

b) Secured and unsecured liabilities

Summary of secured and unsecured liabilities by currency and maturity

Country	Currency	Effective interest rate			Nominal interest rate			Current						Non-Current
								Maturity				Total Current 12/31/2014 ThCh$		Maturity										Total Non- Current 12/31/2014 ThCh$
								One to three months ThCh$		Three to Twelve months ThCh$				One to two years ThCh$		Two to three years ThCh$		Three to four years ThCh$		Four to five years ThCh$		More than five years ThCh$
Chile	US$		7.61	%		7.17	%		9,028,616		144,138,509		153,167,125		25,547,239		25,547,239		25,547,239		25,547,239		733,419,902		835,608,858
Chile	U.F.		6.34	%		5.57	%		8,377,677		30,005,314		38,382,991		37,771,918		37,160,846		36,549,774		46,672,611		429,466,743		587,621,892
Total									17,406,293		174,143,823		191,550,116		63,319,157		62,708,085		62,097,013		72,219,850		1,162,886,645		1,423,230,750

Country	Currency	Effective interest rate			Nominal interest rate									Non-Current
								Maturity				Total Current 12/31/2013 ThCh$		Maturity										Total Non- Current 12/31/2013 ThCh$
								One to three months ThCh$		Three to Twelve months ThCh$				One to two years ThCh$		Two to three years ThCh$		Three to four years ThCh$		Four to five years ThCh$		More than five years ThCh$
Chile	US$		7.95	%		7.62	%		5,738,678		17,216,036		22,954,714		124,912,501		13,505,570		13,505,570		13,505,570		399,525,039		564,954,250
Chile	U.F.		6.34	%		5.57	%		5,444,098		21,021,997		26,466,095		26,064,679		25,663,264		25,261,847		24,860,433		394,573,848		496,424,071
Total									11,182,776		38,238,033		49,420,809		150,977,180		39,168,834		38,767,417		38,366,003		794,098,887		1,061,378,321

Country	Currency	Effective interest rate			Nominal interest rate			Current						Non-Current
								Maturity				Total Current 1/1/2013 ThCh$		Maturity										Total Non- Current 1/1/2013 ThCh$
								One to three months ThCh$		Three to Twelve months ThCh$				One to two years ThCh$		Two to three years ThCh$		Three to four years ThCh$		Four to five years ThCh$		More than five years ThCh$
Chile	US$		8.02	%		7.71	%		9,265,672		213,808,862		223,074,534		20,553,482		113,476,689		12,050,729		12,050,730		396,990,182		555,121,812
Chile	U.F.		6.34	%		5.57	%		5,802,114		21,972,628		27,774,742		27,359,583		26,944,423		26,529,265		26,114,104		418,783,834		525,731,209
Total									15,067,786		235,781,490		250,849,276		47,913,065		140,421,112		38,579,994		38,164,834		815,774,016		1,080,853,021

F-230

            Secured and unsecured liabilities by company

Taxpayer ID Number	Company	Country		Financial Institution	Country	Currency	Effective Interest Rate			Nominal Interest Rate			December 31, 2014
													Maturity						Maturity
													Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non- Current
91.081.000-6	Endesa Chile S.A.		Chile	BNY Mellon - Primera Emisión S-1	U.S.A	US$		7.96	%		7.88	%		2,474,039		7,422,118		9,896,157		9,896,157		9,896,157		9,896,157		9,896,157		195,949,534		235,534,162
91.081.000-6	Endesa Chile S.A.		Chile	BNY Mellon - Primera Emisión S-2	U.S.A	US$		7.40	%		7.33	%		789,495		2,368,484		3,157,979		3,157,979		3,157,979		3,157,979		3,157,979		77,747,246		90,379,162
91.081.000-6	Endesa Chile S.A.		Chile	BNY Mellon - Primera Emisión S-3	U.S.A	US$		8.26	%		8.13	%		502,137		1,506,412		2,008,549		2,008,549		2,008,549		2,008,549		2,008,549		168,757,572		176,791,768
91.081.000-6	Endesa Chile S.A.		Chile	BNY Mellon - 144 - A	U.S.A	US$		8.83	%		8.63	%		2,641,806		124,978,079		127,619,885		—		—		—		—		—		—
91.081.000-6	Endesa Chile S.A.		Chile	BNY Mellon - Unica 24296	U.S.A	US$		5.30	%		4.25	%		2,621,139		7,863,416		10,484,555		10,484,554		10,484,554		10,484,554		10,484,554		290,965,550		332,903,766
91.081.000-6	Endesa Chile S.A.		Chile	Banco Santander - 317 Serie-H	Chile	U.F.		7.17	%		6.20	%		2,174,007		11,394,304		13,568,311		12,957,238		12,346,166		11,735,094		11,124,022		73,777,578		121,940,098
91.081.000-6	Endesa Chile S.A.		Chile	Banco Santander 522 Serie-M	Chile	U.F.		4.82	%		4.75	%		6,203,670		18,611,010		24,814,680		24,814,680		24,814,680		24,814,680		35,548,589		355,689,165		465,681,794
														17,406,293		174,143,823		191,550,116		63,319,157		62,708,085		62,097,013		72,219,850		1,162,886,645		1,423,230,750

Taxpayer ID Number	Company	Country		Financial Institution	Country	Currency	Effective Interest Rate			Nominal Interest Rate			December 31, 2013
													Maturity						Maturity
													Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non- Current
91.081.000-6	Endesa Chile S.A.		Chile	BNY Mellon - Primera Emisión S-1	U.S.A	US$		7.96	%		7.88	%		2,217,451		6,652,353		8,869,804		8,869,804		8,869,805		8,869,804		8,869,805		180,634,922		216,114,140
91.081.000-6	Endesa Chile S.A.		Chile	BNY Mellon - Primera Emisión S-2	U.S.A	US$		7.40	%		7.33	%		708,960		2,126,881		2,835,841		2,835,842		2,835,841		2,835,842		2,835,841		68,415,434		79,758,800
91.081.000-6	Endesa Chile S.A.		Chile	BNY Mellon - Primera Emisión S-3	U.S.A	US$		8.26	%		8.13	%		449,981		1,349,943		1,799,924		1,799,924		1,799,924		1,799,924		1,799,924		150,474,683		157,674,379
91.081.000-6	Endesa Chile S.A.		Chile	BNY Mellon - 144 - A	U.S.A	US$		8.83	%		8.63	%		2,362,286		7,086,859		9,449,145		111,406,931		—		—		—		—		111,406,931
91.081.000-6	Endesa Chile S.A.		Chile	BNY Mellon - Unica 24296	U.S.A	US$		5.30	%		4.25	%		—		—		—		—		—		—		—		—		—
91.081.000-6	Endesa Chile S.A.		Chile	Banco Santander -317 Serie-H	Chile	U.F.		7.17	%		6.20	%		1,528,468		9,275,107		10,803,575		10,402,159		10,000,743		9,599,327		9,197,912		71,006,646		110,206,787
91.081.000-6	Endesa Chile S.A.		Chile	Banco Santander 522 Serie-M	Chile	U.F.		4.82	%		4.75	%		3,915,630		11,746,890		15,662,520		15,662,520		15,662,521		15,662,520		15,662,521		323,567,202		386,217,284
														11,182,776		38,238,033		49,420,809		150,977,180		39,168,834		38,767,417		38,366,003		794,098,887		1,061,378,321

Taxpayer ID Number	Company	Country		Financial Institution	Country	Currency	Effective Interest Rate			Nominal Interest Rate			January 1, 2013
													Maturity						Maturity
													Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non- Current
91.081.000-6	Endesa Chile S.A.		Chile	BNY Mellon - Primera Emisión S-1	U.S.A	US$		7.96	%		7.88	%		1,975,290		5,925,870		7,901,160		7,901,160		7,901,161		7,901,160		7,901,161		171,658,937		203,263,579
91.081.000-6	Endesa Chile S.A.		Chile	BNY Mellon - Primera Emisión S-2	U.S.A	US$		7.40	%		7.33	%		630,588		1,891,764		2,522,352		2,522,351		2,522,352		2,522,351		2,522,352		78,366,028		88,455,434
91.081.000-6	Endesa Chile S.A.		Chile	BNY Mellon - Primera Emisión S-3	U.S.A	US$		8.26	%		8.13	%		406,804		1,220,413		1,627,217		1,627,218		1,627,217		1,627,218		1,627,217		146,965,217		153,474,087
91.081.000-6	Endesa Chile S.A.		Chile	BNY Mellon - 144 - A	U.S.A	US$		8.50	%		8.35	%		4,127,302		198,393,750		202,521,052										—		—
91.081.000-6	Endesa Chile S.A.		Chile	BNY Mellon - 144-A	U.S.A	US$		8.83	%		8.63	%		2,125,688		6,377,065		8,502,753		8,502,753		101,425,959						—		109,928,712
91.081.000-6	Endesa Chile S.A.		Chile	Banco Santander -317 Serie-H	Chile	U.F.		7.17	%		6.20	%		1,684,588		9,620,049		11,304,637		10,889,478		10,474,319		10,059,160		9,644,000		79,761,211		120,828,168
91.081.000-6	Endesa Chile S.A.		Chile	Banco Santander 522 Serie-M	Chile	U.F.		4.82	%		4.75	%		4,117,526		12,352,579		16,470,105		16,470,105		16,470,104		16,470,105		16,470,104		339,022,623		404,903,041
														15,067,786		235,781,490		250,849,276		47,913,065		140,421,112		38,579,994		38,164,834		815,774,016		1,080,853,021

F-231

c) Financial lease obligations

Financial lease obligations by company

Taxpayer ID Number	Company	Country	Financial Institution	Country		Currency		Nominal Interest Rate			December 31, 2014
											Maturity						Maturity
											Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non- Current
91.081.000-6	Endesa Chile S.A.	Chile	Abengoa Chile		Chile		US$		6.50	%		652,199		1,957,446		2,609,645		2,611,991		2,614,490		2,617,151		2,619,984		12,287,815		22,751,431
												652,199		1,957,446		2,609,645		2,611,991		2,614,490		2,617,151		2,619,984		12,287,815		22,751,431

Taxpayer ID Number	Company	Country	Financial Institution	Country		Currency		Nominal Interest Rate			December 31, 2013
											Maturity						Maturity
											Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non- Current
91.081.000-6	Endesa Chile S.A.	Chile	Abengoa Chile		Chile		US$		6.50	%		581,073		1,742,183		2,323,256		2,320,387		2,317,331		2,314,078		2,310,611		13,024,032		22,286,439
												581,073		1,742,183		2,323,256		2,320,387		2,317,331		2,314,078		2,310,611		13,024,032		22,286,439

Taxpayer ID Number	Company	Country	Financial Institution	Country		Currency		Nominal Interest Rate			January 1, 2013
											Maturity						Maturity
											Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non- Current
91.081.000-6	Endesa Chile S.A.	Chile	Abengoa Chile		Chile		US$		6.50	%		517,486		1,552,682		2,070,168		2,070,789		2,071,450		2,072,153		2,072,904		13,854,905		22,142,201
												517,486		1,552,682		2,070,168		2,070,789		2,071,450		2,072,153		2,072,904		13,854,905		22,142,201

F-232

d) Other obligations

Taxpayer ID Number	Company	Country	Financial Institution	Country		Currency		Nominal Interest Rate			January 1, 2013
											Maturity						Maturity
											Less than 90 days		More than 90 days		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non- Current
96.827.970-K	Endesa Eco S.A.	Chile	Inversiones Centinela S.A.		Chile		US$		6.10	%		2,017,319		—		2,017,319		—		—		—		—		—		—
												2,017,319		—		2,017,319		—		—		—		—		—		—

F-233

APPENDIX 5. DETAILS OF ASSETS AND LIABILITIES IN FOREIGN CURRENCY

This appendix forms an integral part of the Enersis Chile’s financial statements.

The detail of assets and liabilities denominated in foreign currencies is the following:

ASSETS	Foreign Currency	Functional Currency	12-31-2014 ThCh$		12-31-2013 ThCh$		1-1-2013 ThCh$
CURRENT ASSETS
Cash and cash equivalents				91,039,422		97,562,458		875,924
	U.S. dollar	Chilean peso		80,722,128		97,562,458		875,924
	Argentine peso	U.S. dollar		6,110,560
	Chilean peso	U.S. dollar		4,206,734		—		—
Current accounts receivable from related companies				14,039,935		28,384,147		13,434,569
	U.S. dollar	Chilean peso		14,039,935		28,384,147		13,434,569
TOTAL CURRENT ASSETS				105,079,357		125,946,605		14,310,493
NON- CURRENT ASSETS
Investments accounted for using the equity method				27,794,762		15,039,447		9,407,276
	U.S. dollar	Chilean peso		27,794,762		15,039,447		9,407,276
TOTAL NON-CURRENT ASSETS				27,794,762		15,039,447		9,407,276
TOTAL ASSETS				132,874,119		140,986,052		23,717,769

F-234

	Foreign Currency	Functional Currency	12-31-2014
			Current Liabilities						Non-current Liabilities
			90 days or less		91 days to 1 year		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non-current
			ThCh$		ThCh$				ThCh$		ThCh$		ThCh$		ThCh$		ThCh$
LIABILITIES
Other current financial liabilities	U.S. dollar	Chilean peso		9,701,084		147,116,531		156,817,615		28,159,230		28,161,729		28,164,390		28,167,223		745,707,717		858,360,289
				9,701,084		147,116,531		156,817,615		28,159,230		28,161,729		28,164,390		28,167,223		745,707,717		858,360,289
TOTAL LIABILITIES				9,701,084		147,116,531		156,817,615		28,159,230		28,161,729		28,164,390		28,167,223		745,707,717		858,360,289

	Foreign Currency	Functional Currency	12-31-2013
			Current Liabilities						Non-current Liabilities
			90 days or less		91 days to 1 year		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non-current
			ThCh$		ThCh$				ThCh$		ThCh$		ThCh$		ThCh$		ThCh$
LIABILITIES
Other current financial liabilities	U.S. dollar	Chilean peso		7,162,601		125,801,393		132,963,994		128,125,713		15,822,901		15,819,647		15,816,181		412,549,072		588,133,514
				7,162,601		125,801,393		132,963,994		128,125,713		15,822,901		15,819,647		15,816,181		412,549,072		588,133,514
TOTAL LIABILITIES				7,162,601		125,801,393		132,963,994		128,125,713		15,822,901		15,819,647		15,816,181		412,549,072		588,133,514

	Foreign Currency	Functional Currency	1-1-2013
			Current Liabilities						Non-current Liabilities
			90 days or less		91 days to 1 year		Total Current		One to two years		Two to three years		Three to four years		Four to five years		More than five years		Total Non-current
			ThCh$		ThCh$				ThCh$		ThCh$		ThCh$		ThCh$		ThCh$
LIABILITIES
Other current financial liabilities	U.S. dollar	Chilan peso		12,618,863		217,892,993		230,511,856		120,799,054		116,355,813		14,122,883		14,123,633		410,845,086		676,246,469
				12,618,863		217,892,993		230,511,856		120,799,054		116,355,813		14,122,883		14,123,633		410,845,086		676,246,469
TOTAL LIABILITIES				12,618,863		217,892,993		230,511,856		120,799,054		116,355,813		14,122,883		14,123,633		410,845,086		676,246,469

F-235

APPENDIX 6. ADDITIONAL INFORMATION TRADE AND OTHER RECEIVABLES

This appendix forms an integral part of the Enersis Chile’s financial statements.

a) Portfolio stratification

• Trade and other receivables by aging:

Trade and other current receivables	Balance at
	12-31-2014
	Current portfolio ThCh$			1-30 days ThCh$			31-60 days ThCh$			61-90 days ThCh$			91-120 days ThCh$			121-150 days ThCh$			151-180 days ThCh$			181-210 days ThCh$			211-250 days ThCh$			More than 251 days ThCh$			Total Current ThCh$			Total Non- Current ThCh$
Trade receivables, gross		408,553,659			24,895,938			11,368,415			3,524,410			780,369			1,529,776			724,073			1,364,913			683,993			37,128,352			490,553,898			3,318,126
Allowance for doubtful accounts		(240,504	)		(206,494	)		(284,757	)		(239,194	)		(169,479	)		(143,664	)		(96,107	)		(381,988	)		(113,699	)		(22,030,558	)		(23,906,444	)		—
Other receivables, gross		117,362,474			—			—			—			—			—			—			—			—			—			117,362,474			4,178,286
Allowance for doubtful accounts		(5,928,723	)		—			—			—			—			—			—			—			—			—			(5,928,723	)		—
Total		519,746,906			24,689,444			11,083,658			3,285,216			610,890			1,386,112			627,966			982,925			570,294			15,097,794			578,081,205			7,496,412
Trade and other current receivables	Balance at
	12-31-2013
	Current portfolio ThCh$			1-30 days ThCh$			31-60 days ThCh$			61-90 days ThCh$			91-120 days ThCh$			121-150 days ThCh$			151-180 days ThCh$			181-210 days ThCh$			211-250 days ThCh$			More than 251 days ThCh$			Total Current ThCh$			Total Non- Current ThCh$
Trade receivables, gross		198,677,570			28,534,523			9,663,543			1,290,763			1,226,819			21,888,357			1,314,153			1,230,286			607,250			34,719,942			299,153,206			2,864,459
Allowance for doubtful accounts		(388,875	)		(245,282	)		(292,237	)		(157,163	)		(178,308	)		(210,302	)		(107,083	)		(318,241	)		(103,035	)		(20,460,615	)		(22,461,141	)		—
Other receivables, gross		34,713,574			—			—			—			—			—			—			—			—			—			34,713,574			4,010,575
Allowance for doubtful accounts		(8,425,006	)		—			—			—			—			—			—			—			—			—			(8,425,006	)		—
Total		224,577,263			28,289,241			9,371,306			1,133,600			1,048,511			21,678,055			1,207,070			912,045			504,215			14,259,327			302,980,633			6,875,034

F-236

Trade and other current receivables	Balance at
	1-1-2013
	Current portfolio ThCh$			1-30 days ThCh$			31-60 days ThCh$			61-90 days ThCh$			91-120 days ThCh$			121-150 days ThCh$			151-180 days ThCh$			181-210 days ThCh$			211-250 days ThCh$			More than 251 days ThCh$			Total Current ThCh$			Total Non- Current ThCh$
Trade receivables, gross		166,636,732			20,586,674			6,781,074			2,042,335			1,020,396			1,691,470			432,151			1,367,349			255,818			33,254,139			234,068,138			3,343,742
Allowance for doubtful accounts		(327,240	)		(175,329	)		(182,625	)		(194,331	)		(145,518	)		(138,186	)		(95,129	)		(300,849	)		(78,723	)		(18,204,998	)		(19,842,928	)		—
Other receivables, gross		92,264,321			—			—			—			—			—			—			—			—			—			92,264,321			4,204,647
Allowance for doubtful accounts		(4,284,675	)																										—			(4,284,675	)		—
Total		254,289,138			20,411,345			6,598,449			1,848,004			874,878			1,553,284			337,022			1,066,500			177,095			15,049,141			302,204,856			7,548,389

• By type of portfolio:

Aging of balances	Balance at
	12-31-2014
	Non-Renegotiated Portfolio				Renegotiated Portfolio				Total Gross Portfolio
	Number of customers		Gross value		Number of customers		Gross value		Number of customers		Gross value
			ThCh$				ThCh$				ThCh$
Current		1,120,913		408,973,803		44,355		2,897,982		1,165,268		411,871,785
1 to 30 days		394,849		22,455,423		20,378		2,440,515		415,227		24,895,938
31 to 60 days		107,014		10,431,423		6,632		936,992		113,646		11,368,415
61 to 90 days		16,019		3,237,896		1,335		286,514		17,354		3,524,410
91 to 120 days		6,699		617,720		672		162,649		7,371		780,369
121 to 150 days		5,401		1,403,115		468		126,661		5,869		1,529,776
151 to 180 days		4,457		650,259		272		73,814		4,729		724,073
181 to 210 days		5,433		1,299,677		183		65,236		5,616		1,364,913
211 to 250 days		3,731		644,648		158		39,345		3,889		683,993
More than 251 days		91,978		29,615,862		4,650		7,512,490		96,628		37,128,352
Total		1,756,494		479,329,826		79,103		14,542,198		1,835,597		493,872,024

F-237

Aging of balances	Balance at
	12-31-2013
	Non-Renegotiated Portfolio				Renegotiated Portfolio				Total Gross Portfolio
	Number of customers		Gross value		Number of customers		Gross value		Number of customers		Gross value
			ThCh$				ThCh$				ThCh$
Current		1,004,517		195,562,433		45,831		3,115,137		1,050,348		198,677,570
1 to 30 days		472,375		25,802,726		21,903		2,731,797		494,278		28,534,523
31 to 60 days		109,366		8,740,051		5,836		923,492		115,202		9,663,543
61 to 90 days		12,702		1,069,871		979		220,892		13,681		1,290,763
91 to 120 days		6,147		1,048,283		508		178,536		6,655		1,226,819
121 to 150 days		4,831		21,751,217		371		137,140		5,202		21,888,357
151 to 180 days		3,917		809,784		207		504,369		4,124		1,314,153
181 to 210 days		5,109		1,133,610		150		96,676		5,259		1,230,286
211 to 250 days		3,210		566,037		122		41,213		3,332		607,250
More than 251 days		162,041		26,972,677		5,295		7,747,265		167,336		34,719,942
Total		1,784,215		283,456,689		81,202		15,696,517		1,865,417		299,153,206

Aging of balances	Balance at
	1-1-2013
	Non-Renegotiated Portfolio				Renegotiated Portfolio				Total Gross Portfolio
	Number of customers		Gross value		Number of customers		Gross value		Number of customers			Gross value
			ThCh$				ThCh$					ThCh$
Current		10,265,582		159,257,844		333,154		7,378,888		10,598,736			166,636,732
1 to 30 days		2,063,754		18,580,548		92,078		2,006,126		2,155,832			20,586,674
31 to 60 days		371,586		6,157,877		36,119		623,197		407,705			6,781,074
61 to 90 days		76,378		1,779,825		24,312		262,510		100,690			2,042,335
91 to 120 days		54,860		819,186		15,077		201,210		69,937	��		1,020,396
121 to 150 days		43,521		1,565,404		14,427		126,066		57,948			1,691,470
151 to 180 days		34,882		366,974		9,840		65,177		44,722			432,151
181 to 210 days		18,980		952,333		15,738		415,016		34,718			1,367,349
211 to 250 days		17,673		221,968		10,848		33,850		28,521			255,818
More than 251 days		312,567		26,832,198		22,929		6,421,941		335,496			33,254,139
Total		13,259,784		216,534,157		574,521		17,533,981		13,834,305			234,068,138

b ) Portfolio in default and in legal collection process

Portfolio in Default and in Legal Collection Process	Balance at				Balance at				Balance at
	12-31-2014				12-31-2013				1-1-2013
	Number of Clients		Amount ThCh$		Number of Clients		Amount ThCh$		Number of Clients		Amount ThCh$
Notes receivable in default		2,039		269,934		2,095		275,052		2,240		270,358
Notes receivable in legal collection process (*)		3,898		6,983,415		3,344		5,606,201		2,605		4,642,597
Total		5,937		7,253,349		5,439		5,881,253		4,845		4,912,955

(*) Legal collections are included in the portfolio in arrears.

F-238

c ) Provisions and write-offs

Provisions and Write-offs	Balance at
	12-31-2014			12-31-2013			1-1-2013
	ThCh$			ThCh$			ThCh$
Provision for non-renegotiated portfolio		663,184			6,720,527			6,760,845
Provision for renegotiated portfolio		(7,584	)		1,220,240			(1,679,698	)
Write-offs during the period		—			(1,182,223	)		(4,042,612	)
Recoveries during the period		—			—			—
Total		655,600			6,758,544			1,038,535

d ) Number and value of operations

Number and Value of Operations	Balance at
	12-31-2014				12-31-2013				1-1-2013
	Total detail by type of operation Last Quarter		Total detail by type of operation Annual Accumulation		Total detail by type of operation Last Quarter		Total detail by type of operation Annual Accumulation		Total detail by type of operation Last Quarter		Total detail by type of operation Annual Accumulation
	ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$
Impairment and recoveries
Number of operations		1,811,109		1,811,109		1,850,913		1,838,395		1,678,934		1,678,934
Value of operations, in ThCh$		655,600		655,600		11,101,128		7,940,767		2,922,929		5,081,147

F-239

APPENDIX 6.1. SUPPLEMENTARY INFORMATION ON TRADE RECEIVABLES

This appendix forms an integral part of the Enersis Chile’s financial statements.

a) Portfolio stratification

• Trade receivables by aging:

Trade and other receivables	Balance at
	12-31-2014
	Current portfolio ThCh$			1-30 days ThCh$			31-60 days ThCh$			61-90 days ThCh$			91-120 days ThCh$			121-150 days ThCh$			151-180 days ThCh$			181-210 days ThCh$			211-250 days ThCh$			More than 251 days ThCh$			Total Current ThCh$			Total Non-Current ThCh$
Generation receivables		215,515,564			1,126,379			2,211,459			549,240			165,805			16,224			203,213			4,742			11,386			1,475,172			221,279,184			—
-Large customers		215,515,564			1,126,379			2,211,459			498,757			165,805			16,224			203,213			4,742			11,386			1,475,172			221,228,701			—
-Institutional customers		—			—			—			—			—			—			—			—			—			—			—			—
-Other		—			—			—			50,483			—			—			—			—			—			—			50,483			—
Allowance for doubtful accoutns		—			—			—			—			—			—			—			—			—			(1,177,635	)		(1,177,635	)		—
Unbilled services		129,288,778			—			—			—			—			—			—			—			—			—			129,288,778			—
Services billed		86,226,786			1,126,379			2,211,459			549,240			165,805			16,224			203,213			4,742			11,386			1,475,172			91,990,406			—
Distribution receivables		193,038,095			23,769,559			9,156,956			2,975,170			614,564			1,513,552			520,860			1,360,171			672,607			35,653,180			269,274,714			3,318,126
-Mass market customers		148,429,749			16,970,890			6,872,321			1,012,684			474,373			337,101			258,211			486,833			154,843			17,153,968			192,150,973			2,358,478
-Large customers		39,530,019			6,327,489			1,561,755			1,708,259			6,617			357,959			231,579			662,941			217,543			8,790,763			59,394,924			550,439
-Institutional customers		5,078,327			471,180			722,880			254,227			133,574			818,492			31,070			210,397			300,221			9,708,449			17,728,817			409,209
Allowance for doubtful accounts		(240,504	)		(206,494	)		(284,757	)		(239,194	)		(169,479	)		(143,664	)		(96,107	)		(381,988	)		(113,699	)		(20,852,923	)		(22,728,809	)		—
Unbilled services		159,974,872			—			—			—			—			—			—			—			—			—			159,974,872			—
Services billed		33,063,222			23,769,559			9,156,956			2,975,170			614,564			1,513,552			520,860			1,360,171			672,607			35,653,180			109,299,841			3,318,126
Total Trade Receivables, Gross		408,553,659			24,895,938			11,368,415			3,524,410			780,369			1,529,776			724,073			1,364,913			683,993			37,128,352			490,553,898			3,318,126
Total Allowance for doubtful accounts		(240,504	)		(206,494	)		(284,757	)		(239,194	)		(169,479	)		(143,664	)		(96,107	)		(381,988	)		(113,699	)		(22,030,558	)		(23,906,444	)		—
Total Trade Receivables, Net		408,313,155			24,689,444			11,083,658			3,285,216			610,890			1,386,112			627,966			982,925			570,294			15,097,794			466,647,454			3,318,126

F-240

Trade and other receivables	Balance at
	12-31-2013
	Current portfolio ThCh$			1-30 days ThCh$			31-60 days ThCh$			61-90 days ThCh$			91-120 days ThCh$			121-150 days ThCh$			151-180 days ThCh$			181-210 days ThCh$			211-250 days ThCh$			More than 251 days ThCh$			Total Current ThCh$			Total Non-Current ThCh$
Generation receivables		112,047,882			198			97,813			7			1,646			20,713,740			1,050			—			2			2,528,299			135,390,637			—
-Large customers		111,494,204			198			97,813			7			1,646			20,713,740			1,050			—			2			2,528,299			134,836,959			—
-Institutional customers		—			—			—			—			—			—			—			—			—			—			—			—
-Other		553,678			—			—			—			—			—			—			—			—			—			553,678			—
Allowance for doubtful accoutns		—			—			—			—			—			(55,494	)		—			—			—			(2,113,828	)		(2,169,322	)		—
Unbilled services		82,283,697			—			—			—			—			—			—			—			—			—			82,283,697			—
Services billed		29,764,185			198			97,813			7			1,646			20,713,740			1,050			—			2			2,528,299			53,106,940			—
Distribution receivables		86,629,688			28,534,325			9,565,730			1,290,756			1,225,173			1,174,617			1,313,103			1,230,286			607,248			32,191,643			163,762,569			2,864,459
-Mass market customers		43,088,700			19,834,133			6,915,311			747,993			460,339			399,548			207,620			393,091			141,548			14,890,334			87,078,617			2,372,520
-Large customers		39,209,364			8,175,587			2,190,001			401,817			97,703			274,715			467,769			408,799			17,783			6,988,976			58,232,514			331,849
-Institutional customers		4,331,624			524,605			460,418			140,946			667,131			500,354			637,714			428,396			447,917			10,312,333			18,451,438			160,090
Allowance for doubtful accounts		(388,875	)		(245,282	)		(292,237	)		(157,163	)		(178,308	)		(154,808	)		(107,083	)		(318,241	)		(103,035	)		(18,346,787	)		(20,291,819	)		—
Unbilled services		54,543,307			—			—			—			—			—			—			—			—			—			54,543,307			699,393
Services billed		32,086,381			28,534,325			9,565,730			1,290,756			1,225,173			1,174,617			1,313,103			1,230,286			607,248			32,191,643			109,219,262			2,165,066
Total Trade Receivables, Gross		198,677,570			28,534,523			9,663,543			1,290,763			1,226,819			21,888,357			1,314,153			1,230,286			607,250			34,719,942			299,153,206			2,864,459
Total Allowance for doubtful accounts		(388,875	)		(245,282	)		(292,237	)		(157,163	)		(178,308	)		(210,302	)		(107,083	)		(318,241	)		(103,035	)		(20,460,615	)		(22,461,141	)		—
Total Trade Receivables, Net		198,288,695			28,289,241			9,371,306			1,133,600			1,048,511			21,678,055			1,207,070			912,045			504,215			14,259,327			276,692,065			2,864,459
Trade and other receivables	Balance at
	1-1-2013
	Current portfolio ThCh$			1-30 days ThCh$			31-60 days ThCh$			61-90 days ThCh$			91-120 days ThCh$			121-150 days ThCh$			151-180 days ThCh$			181-210 days ThCh$			211-250 days ThCh$			More than 251 days ThCh$			Total Current ThCh$			Total Non-Current ThCh$
Generation receivables		66,688,744			690,657			47,160			55,509			225,950			1,854			4,577			—			—			3,977,224			71,691,675			—
-Large customers		64,579,710			77,435			95			2			404			—			2			—			—			3,975,563			68,633,211			—
-Institutional customers		—			—			—			—			—			—			—			—			—			—			—			—
-Other		2,109,034			613,222			47,065			55,507			225,546			1,854			4,575			—			—			1,661			3,058,464			—
Allowance for doubtful accoutns		—			—			—			—			—			—			—			—			—			(2,615,893	)		(2,615,893	)
Unbilled services		41,575,275			—			—			—			—			—			—			—			—			—			41,575,275			—
Services billed		25,113,469			690,657			47,160			55,509			225,950			1,854			4,577			—			—			3,977,224			30,116,400			—
Distribution receivables		99,947,988			19,896,017			6,733,914			1,986,826			794,446			1,689,616			427,574			1,367,349			255,818			29,276,915			162,376,463			3,343,742
-Mass market customers		52,941,796			13,669,680			4,052,703			866,507			463,935			296,526			227,916			331,750			147,860			13,029,363			86,028,036			2,645,462
-Large customers		38,636,985			5,518,006			2,315,421			815,384			146,301			333,926			24,988			161,295			5,076			6,001,142			53,958,524			528,630
-Institutional customers		8,369,207			708,331			365,790			304,935			184,210			1,059,164			174,670			874,304			102,882			10,246,410			22,389,903			169,650
Allowance for doubtful accounts		(327,240	)		(175,329	)		(182,625	)		(194,331	)		(145,518	)		(138,186	)		(95,129	)		(300,849	)		(78,723	)		(15,589,105	)		(17,227,035	)
Unbilled services		54,348,384			—			—			—			—			—			—			—			—			—			54,348,384			685,327
Services billed		45,599,606			19,896,017			6,733,914			1,986,826			794,446			1,689,616			427,574			1,367,349			255,818			29,276,915			108,028,081			2,658,416
Total Trade Receivables, Gross		166,636,732			20,586,674			6,781,074			2,042,335			1,020,396			1,691,470			432,151			1,367,349			255,818			33,254,139			234,068,138			3,343,742
Total Allowance for doubtful accounts		(327,240	)		(175,329	)		(182,625	)		(194,331	)		(145,518	)		(138,186	)		(95,129	)		(300,849	)		(78,723	)		(18,204,998	)		(19,842,928	)		—
Total Trade Receivables, Net		166,309,492			20,411,345			6,598,449			1,848,004			874,878			1,553,284			337,022			1,066,500			177,095			15,049,141			214,225,210			3,343,742

Since not all of our commercial databases in our Group’s different combined entities distinguish whether the final electricity service consumer is a natural or legal person, the main management segmentation used by all the combined entities to monitor and follow up on trade receivables is the following:

• Large customers

• Institutional customers

• Mass-market customers

F-241

- By type of portfolio:

Portfolio Type	Balance at
	12-31-2014
	Current portfolio ThCh$		1-30 days ThCh$		31-60 days ThCh$		61-90 days ThCh$		91-120 days ThCh$		121-150 days ThCh$		151-180 days ThCh$		181-210 days ThCh$		211-250 days ThCh$		More than 251 days ThCh$		Total Gross Portfolio ThCh$
GENERATION
Non-Renegotiated Portfolio		215,515,564		1,126,379		2,211,459		549,240		165,805		16,224		203,213		4,742		11,386		1,475,172		221,279,184
-Large customers		215,515,564		1,126,379		2,211,459		498,757		165,805		16,224		203,213		4,742		11,386		1,475,172		221,228,701
-Institutional customers		—		—		—		—		—		—		—		—		—		—		—
-Other		—		—		—		50,483		—		—		—		—		—		—		50,483
Renegotiated Portfolio		—		—		—		—		—		—		—		—		—		—		—
-Large customers		—		—		—		—		—		—		—		—		—		—		—
-Institutional customers		—		—		—		—		—		—		—		—		—		—		—
-Other		—		—		—		—		—		—		—		—		—		—		—
DISTRIBUTION
Non-Renegotiated Portfolio		190,140,113		21,329,044		8,219,964		2,688,656		451,915		1,386,891		447,046		1,294,935		633,262		28,140,690		254,732,516
-Mass market customers		146,243,855		14,632,805		5,935,329		736,267		311,815		210,642		184,854		421,774		115,498		9,683,090		178,475,929
-Large customers		39,239,436		6,240,396		1,561,755		1,698,236		6,617		357,959		231,579		662,941		217,543		8,774,211		58,990,673
-Institutional customers		4,656,822		455,843		722,880		254,153		133,483		818,290		30,613		210,220		300,221		9,683,389		17,265,914
Renegotiated Portfolio		2,897,982		2,440,515		936,992		286,514		162,649		126,661		73,814		65,236		39,345		7,512,490		14,542,198
-Mass market customers		2,185,893		2,338,085		936,992		276,417		162,558		126,459		73,357		65,059		39,345		7,470,878		13,675,043
-Large customers		290,583		87,093		—		10,023		—		—		—		—		—		16,552		404,251
-Institutional customers		421,506		15,337		—		74		91		202		457		177		—		25,060		462,904
Total gross portfolio		408,553,659		24,895,938		11,368,415		3,524,410		780,369		1,529,776		724,073		1,364,913		683,993		37,128,352		490,553,898

Portfolio Type	Balance at
	12-31-2013
	Current portfolio ThCh$		1-30 days ThCh$		31-60 days ThCh$		61-90 days ThCh$		91-120 days ThCh$		121-150 days ThCh$		151-180 days ThCh$		181-210 days ThCh$		211-250 days ThCh$		More than 251 days ThCh$		Total Gross Portfolio ThCh$
GENERATION
Non-Renegotiated Portfolio		112,047,882		198		97,813		7		1,646		20,713,740		1,050		—		2		2,528,299		135,390,637
-Large customers		111,494,204		198		97,813		7		1,646		20,713,740		1,050		—		2		2,528,299		134,836,959
-Institutional customers		—		—		—		—		—		—		—		—		—		—		—
-Other		553,678		—		—		—		—		—		—		—		—		—		553,678
Renegotiated Portfolio		—		—		—		—		—		—		—		—		—		—		—
-Large customers		—		—		—		—		—		—		—		—		—		—		—
-Institutional customers		—		—		—		—		—		—		—		—		—		—		—
-Other		—		—		—		—		—		—		—		—		—		—		—
DISTRIBUTION
Non-Renegotiated Portfolio		83,514,551		25,802,528		8,642,238		1,069,864		1,046,637		1,037,477		808,734		1,133,610		566,035		24,444,378		148,066,052
-Mass market customers		71,602,345		17,143,040		5,992,086		552,135		312,374		264,085		131,165		342,224		103,494		7,465,923		103,908,871
-Large customers		7,679,208		8,174,806		2,190,001		400,524		67,211		274,715		467,769		399,196		14,624		6,904,062		26,572,116
-Institutional customers		4,232,998		484,682		460,151		117,205		667,052		498,677		209,800		392,190		447,917		10,074,393		17,585,065
Renegotiated Portfolio		3,115,137		2,731,797		923,492		220,892		178,536		137,140		504,369		96,676		41,213		7,747,265		15,696,517
-Mass market customers		3,000,800		2,691,093		923,226		195,857		147,966		135,463		76,455		50,866		38,054		7,424,411		14,684,191
-Large customers		15,711		781		—		1,294		30,492		—		—		9,603		3,159		84,914		145,954
-Institutional customers		98,626		39,923		266		23,741		78		1,677		427,914		36,207		—		237,940		866,372
Total gross portfolio		198,677,570		28,534,523		9,663,543		1,290,763		1,226,819		21,888,357		1,314,153		1,230,286		607,250		34,719,942		299,153,206

F-242

Portfolio Type	Balance at
	1-1-2013
	Current portfolio ThCh$		1-30 days ThCh$		31-60 days ThCh$		61-90 days ThCh$		91-120 days ThCh$		121-150 days ThCh$		151-180 days ThCh$		181-210 days ThCh$		211-250 days ThCh$		More than 251 days ThCh$		Total Gross Portfolio ThCh$
GENERATION
Non-Renegotiated Portfolio		66,688,744		690,657		47,160		55,509		225,950		1,854		4,577		—		—		3,977,224		71,691,675
-Large customers		64,579,710		77,435		95		2		404		—		2		—		—		3,975,563		68,633,211
-Institutional customers		—		—		—		—		—		—		—		—		—		—		—
-Other		2,109,034		613,222		47,065		55,507		225,546		1,854		4,575		—		—		1,661		3,058,464
Renegotiated Portfolio		—		—		—		—		—		—		—		—		—		—		—
-Large customers		—		—		—		—		—		—		—		—		—		—		—
-Institutional customers		—		—		—		—		—		—		—		—		—		—		—
-Other		—		—		—		—		—		—		—		—		—		—		—
DISTRIBUTION
Non-Renegotiated Portfolio		92,569,100		17,889,891		6,110,717		1,724,316		593,236		1,563,550		362,397		952,333		221,968		22,854,974		144,842,482
-Mass market customers		46,823,731		11,744,808		3,437,068		644,271		307,599		198,344		163,068		284,314		117,169		6,748,419		70,468,791
-Large customers		38,425,833		5,454,674		2,315,421		787,328		101,536		333,926		24,988		151,693		1,917		5,931,605		53,528,921
-Institutional customers		7,319,536		690,409		358,228		292,717		184,101		1,031,280		174,341		516,326		102,882		10,174,950		20,844,770
Renegotiated Portfolio		7,378,888		2,006,126		623,197		262,510		201,210		126,066		65,177		415,016		33,850		6,421,941		17,533,981
-Mass market customers		6,118,065		1,924,871		615,635		222,235		156,335		98,182		64,848		47,435		30,691		6,280,943		15,559,240
-Large customers		211,152		63,333		—		28,056		44,766		—		—		9,603		3,159		69,537		429,606
-Institutional customers		1,049,671		17,922		7,562		12,219		109		27,884		329		357,978		—		71,461		1,545,135
Total gross portfolio		166,636,732		20,586,674		6,781,074		2,042,335		1,020,396		1,691,470		432,151		1,367,349		255,818		33,254,139		234,068,138

F-243

APPENDIX 6.2. ESTIMATED SALES AND PURCHASES OF ENERGY AND CAPACITY

This appendix forms an integral part of the Enersis Chile’s financial statements.

	CHILE				TOTAL
	12-31-2014				12-31-2014
BALANCE	Energy and Tolls		Capacity		Energy and Tolls		Capacity
Current accounts receivable from related companies		212,000		109,588		212,000		109,588
Trade and other current receivables		245,764,182		14,741,243		245,764,182		14,741,243
Total Estimated Assets		245,976,182		14,850,831		245,976,182		14,850,831
Current accounts payable to related companies		1,547,416		71,570		1,547,416		71,570
Trade and other current payables		75,929,064		26,185,456		75,929,064		26,185,456
Total Estimated Liabilities		77,476,480		26,257,026		77,476,480		26,257,026
INCOME STATEMENT
Energy Sales		212,420,675		10,496,376		212,420,675		10,496,376
Energy Purchases		38,827,589		10,873,645		38,827,589		10,873,645

F-244

APPENDIX 7. DETAILS OF DUE DATES OF PAYMENTS TO SUPPLIERS

This appendix forms an integral part of the Enersis Chile’s financial statements.

	Balance at
	12-31-2014
	Goods		Services		Other		Total
Suppliers with Current Payments	ThCh$		ThCh$		ThCh$		ThCh$
Up to 30 days		—		80,138,994		60,130,466		140,269,460
From 31 to 60 days		—		—		—		—
From 61 to 90 days		—		—		—		—
From 91 to 120 days		—		—		—		—
From 121 to 365 days		—		—		—		—
More than 365 days		—		—		—		—
Total		—		80,138,994		60,130,466		140,269,460
	Balance at
	12-31-2014
	Goods		Services		Other		Total
Suppliers with Past-Due Payments	ThCh$		ThCh$		ThCh$		ThCh$
Up to 30 days		—		—		—		—
From 31 to 60 days		—		—		—		—
From 61 to 90 days		—		—		—		—
From 91 to 120 days		—		—		—		—
From 121 to 180 days		—		—		—		—
More than 180 days		—		1,137,018		—		1,137,018
Total		—		1,137,018		—		1,137,018

F-245