Information by Segment | 32. INFORMATION BY SEGMENT 32.1 Basis of segmentation The Group’s activities operate under a matrix management structure with dual and cross management responsibilities (based on businesses), and its subsidiaries are engaged in either the Generation Business or the Distribution Business . The Group adopted a “bottom-up” approach to determine its reportable segments. The Generation and the Distribution reportable segments have been defined based on IFRS 8.9 and on the criteria described in IFRS 8.12. Generation Business: The Generation Reportable Segment is comprised of a group of electricity companies that own electricity generating plants, whose energy is transmitted and distributed to end customers. The Generation Business is conducted by our subsidiaries Enel Generación Chile S.A., Empresa Eléctrica Pehuenche S.A. and GasAtacama Chile S.A.. Distribution Business: The Distribution Reportable Segment is comprised of a group of electricity companies operating under a public utility concession, with service obligations and regulated tariffs for supplying regulated customers . The Distribution Business is conducted by our subsidiary Enel Distribución Chile S.A. and its subsidiaries. Each of the operating segments generates separate financial information, which is aggregated into one combined set of information for the Generation Business, and another set of combined information for the Distribution Business at the reportable segment level. In addition, in order to assist the decision maker process, the Planning & Control Department at the Parent Company level prepares internal reports containing combined information at the reportable segment level about the main key performance indicators (KPIs), such as: EBITDA, Gross Margin, Total Capex, Total Opex, Net income, Total Energy Generation, among others. The presentation of information under this business approach has been made taking into consideration that the KPIs are similar and comparable in all segments, in each of the following aspects: (a) the nature of the activities: Generation on one hand, and Distribution on the other; (b) the nature of the production processes: the Generation Business deals with the generation of electricity, while the Distribution Business does not generate electricity, but distributes electricity to end customers; (c) the type or class of customer for their products and services: the Generation Business provides services mainly to unregulated customers, while the Distribution Business provides energy to regulated customers; (d) the methods used to distribute their products or provide their services: generators generally sell the energy through energy auctions, while distributors provide energy in their concession area; and (e) the nature of the regulatory environment (public utilities): the regulatory frameworks differs in the Generation Business and Distribution Business The Company’s chief operating decision maker (CODM) in conjunction with the Chile manager reviews on a monthly basis these internal reports and uses the KPI information to make decisions on the allocation of resources and the assessment of the performance of the operating segments for each reportable segment. The information disclosed in the following tables 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 Group’s consolidated financial statements. The following tables present details of this information by segment: 32.2 Generation, distribution and others Line of Business Generation Distribution Holdings, eliminations and others Total 12-31-2017 12-31-2016 12-31-2017 12-31-2016 12-31-2017 12-31-2016 12-31-2017 12-31-2016 ASSETS ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ CURRENT ASSETS 662,804,360 543,372,955 261,378,069 245,122,733 135,159,356 78,031,249 1,059,341,785 866,526,937 Cash and cash equivalents 211,027,141 114,486,479 42,594,390 23,378,615 165,834,495 108,134,098 419,456,026 245,999,192 Other current financial assets 20,523,276 487,106 61,887 47,517 41,899 49,621 20,627,062 584,244 Other current non-financial assets 2,167,272 4,409,288 3,434,462 11,091,061 400,408 331,137 6,002,142 15,831,486 Trade and other current receivables 218,178,007 260,440,086 197,011,114 180,290,279 4,563,165 4,341,491 419,752,286 445,071,856 Current accounts receivable from related companies 109,797,820 82,727,781 6,305,806 8,895,440 (44,247,580 ) (38,764,837 ) 71,856,046 52,858,384 Inventories 31,740,903 33,390,799 3,049,576 1,878,072 4,896,463 2,270,725 39,686,942 37,539,596 Current tax assets 65,164,708 34,438,408 8,920,834 19,541,749 3,670,506 1,669,014 77,756,048 55,649,171 Non-current assets classified as held for sale 4,205,233 12,993,008 — — — — 4,205,233 12,993,008 NON-CURRENT ASSETS 2,891,657,830 2,856,309,537 893,633,579 829,203,115 850,139,814 846,671,423 4,635,431,223 4,532,184,075 Other non-current financial assets 33,391,398 28,802,569 26,806 24,973 — — 33,418,204 28,827,542 Other non-current non-financial assets 12,853,460 12,318,444 959,679 1,019,050 — (1,342 ) 13,813,139 13,336,152 Trade and other non-current receivables 1,032,922 6,788,437 34,272,234 24,978,209 877,243 1,733,459 36,182,399 33,500,105 Investments accounted for using the equity method 12,707,221 18,738,198 — 60,325 — (60,325 ) 12,707,221 18,738,198 Intangible assets other than goodwill 18,607,972 19,266,874 34,236,891 25,430,420 2,326,041 (226,544 ) 55,170,904 44,470,750 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 2,788,204,501 2,726,838,536 821,234,672 774,999,730 (23,752,036 ) (25,709,632 ) 3,585,687,137 3,476,128,634 Investment property — — — — 8,356,772 8,128,522 8,356,772 8,128,522 Deferred tax assets — 18,696,123 662,819 449,930 2,174,973 2,650,464 2,837,792 21,796,517 TOTAL ASSETS 3,554,462,190 3,399,682,492 1,155,011,648 1,074,325,848 985,299,170 924,702,672 5,694,773,008 5,398,711,012 Line of Business Generation Distribution Holdings, eliminations and others Total 12-31-2017 12-31-2016 12-31-2017 12-31-2016 12-31-2017 12-31-2016 12-31-2017 12-31-2016 LIABILITIES AND EQUITY ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ CURRENT LIABILITIES 543,356,500 555,777,465 408,687,871 259,684,837 (135,227,725 ) (58,215,655 ) 816,816,646 757,246,647 Other current financial liabilities 18,815,434 25,696,064 14 102 — — 18,815,448 25,696,166 Trade and other current payables 329,448,226 341,088,664 189,458,076 151,549,875 75,592,304 68,866,744 594,498,606 561,505,283 Current accounts payable to related companies 122,862,944 121,018,039 207,909,593 96,520,909 (211,159,565 ) (127,110,019 ) 119,612,972 90,428,929 Other current provisions 5,296,635 6,493,428 — 104 339,536 — 5,636,171 6,493,532 Current tax liabilities 66,933,261 61,457,940 94,246 113,855 — 27,620 67,027,507 61,599,415 Other current non-financial liabilities — 23,330 11,225,942 11,499,992 — — 11,225,942 11,523,322 NON-CURRENT LIABILITIES 1,022,091,736 1,114,144,775 61,965,918 106,283,505 6,937,051 (41,957,557 ) 1,090,994,705 1,178,470,723 Other non-current financial liabilities 781,978,145 854,016,751 — — — — 781,978,145 854,016,751 Trade and other non-current payables 632,642 1,453,022 27,182 30,091 — — 659,824 1,483,113 Non-current accounts payable to related companies 318,518 251,527 — 50,000,180 — (50,000,180 ) 318,518 251,527 Other long-term provisions 63,992,567 57,325,914 14,430,270 5,780,994 — — 78,422,837 63,106,908 Deferred tax liabilities 160,293,916 185,277,004 18,786,185 20,502,853 (6,856,420 ) (6,415,063 ) 172,223,681 199,364,794 Non-current provisions for employee benefits 14,875,948 15,820,557 28,412,505 29,655,884 13,793,471 14,457,686 57,081,924 59,934,127 Other non-current non-financial liabilities — — 309,776 313,503 — — 309,776 313,503 EQUITY 1,989,013,954 1,729,760,252 684,357,859 708,357,506 1,113,589,844 1,024,875,884 3,786,961,657 3,462,993,642 Equity attributable to Enel Chile 1,989,013,954 1,729,760,252 684,357,859 708,357,506 1,113,589,844 1,024,875,884 2,983,384,010 2,763,391,288 Issued capital 552,777,321 552,777,321 230,137,980 230,137,980 1,446,193,674 1,446,193,674 2,229,108,975 2,229,108,975 Retained earnings 1,398,018,156 1,199,429,221 769,928,443 794,856,204 (416,341,016 ) (424,910,134 ) 1,751,605,583 1,569,375,291 Share Premium 85,511,492 — 354,220 — (85,865,712 ) — — Other reserves (47,293,015 ) (22,446,290 ) (316,062,784 ) (316,636,678 ) 169,602,898 3,592,344 (997,330,548 ) (1,035,092,978 ) Non-controlling interests — — — — — — 803,577,647 699,602,354 Total Liabilities and Equity 3,554,462,190 3,399,682,492 1,155,011,648 1,074,325,848 985,299,170 924,702,672 5,694,773,008 5,398,711,012 The holdings, eliminations and others column corresponds to transactions between companies in different lines of business, primarily purchases and sales of energy and services. Line of Business Generation Distribution Holdings, eliminations and others Total 12-31-2017 12-31-2016 12-31-2015 12-31-2017 12-31-2016 12-31-2015 12-31-2017 12-31-2016 12-31-2015 12-31-2017 12-31-2016 12-31-2015 STATEMENT OF COMPREHENSIVE INCOME ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ REVENUES AND OTHER OPERATING INCOME 1,634,937,087 1,659,727,329 1,543,812,461 1,333,027,456 1,315,760,852 1,257,732,165 (438,617,665 ) (433,921,362 ) (402,515,486 ) 2,529,346,878 2,541,566,819 2,399,029,140 Revenues 1,599,032,140 1,639,959,816 1,539,991,519 1,328,791,205 1,310,175,226 1,247,900,614 (437,353,167 ) (434,291,162 ) (403,598,944 ) 2,490,470,178 2,515,843,880 2,384,293,189 Energy sales 1,457,671,722 1,516,688,442 1,474,818,366 1,186,795,410 1,172,700,558 1,112,912,836 (376,007,978 ) (376,745,382 ) (340,367,445 ) 2,268,459,154 2,312,643,618 2,247,363,757 Other sales 94,452,287 64,638,599 24,293,133 12,741,568 8,968,859 7,769,616 168,942 — (5,225 ) 107,362,797 73,607,458 32,057,524 Other services rendered 46,908,131 58,632,775 40,880,020 129,254,227 128,505,809 127,218,162 (61,514,131 ) (57,545,780 ) (63,226,274 ) 114,648,227 129,592,804 104,871,908 Other operating income 35,904,947 19,767,513 3,820,942 4,236,251 5,585,626 9,831,551 (1,264,498 ) 369,800 1,083,458 38,876,700 25,722,939 14,735,951 RAW MATERIALS AND CONSUMABLES USED (903,978,006 ) (895,060,114 ) (880,891,222 ) (1,062,076,646 ) (1,042,329,385 ) (983,732,902 ) 444,899,135 439,969,919 382,638,565 (1,521,155,517 ) (1,497,419,580 ) (1,481,985,559 ) Energy purchases (346,954,692 ) (335,731,822 ) (320,731,795 ) (938,067,783 ) (936,965,119 ) (881,589,779 ) 382,587,604 380,950,057 342,118,393 (902,434,871 ) (891,746,884 ) (860,203,181 ) Fuel consumption (280,739,362 ) (295,148,838 ) (327,502,995 ) — — — — — — (280,739,362 ) (295,148,838 ) (327,502,995 ) Transportation expenses (152,869,838 ) (192,502,995 ) (179,691,471 ) (63,009,956 ) (60,454,433 ) (60,901,746 ) 60,000,545 57,834,310 58,140,062 (155,879,249 ) (195,123,118 ) (182,453,155 ) Other miscellaneous supplies and services (123,414,114 ) (71,676,459 ) (52,964,961 ) (60,998,907 ) (44,909,833 ) (41,241,377 ) 2,310,986 1,185,552 (17,619,890 ) (182,102,035 ) (115,400,740 ) (111,826,228 ) CONTRIBUTION MARGIN 730,959,081 764,667,215 662,921,239 270,950,810 273,431,467 273,999,263 6,281,470 6,048,557 (19,876,921 ) 1,008,191,361 1,044,147,239 917,043,581 Other work performed by the entity and capitalized 7,226,484 9,758,304 15,250,811 6,630,130 6,338,547 5,753,242 532,373 1 — 14,388,987 16,096,852 21,004,053 Employee benefits expense (54,222,470 ) (60,350,072 ) (70,969,357 ) (38,449,551 ) (35,557,457 ) (32,454,962 ) (28,831,756 ) (28,190,899 ) (33,130,402 ) (121,503,777 ) (124,098,428 ) (136,554,721 ) Other expenses (102,821,020 ) (119,303,215 ) (90,327,960 ) (61,942,592 ) (52,077,948 ) (62,182,651 ) 2,939,538 612,026 26,653,214 (161,824,074 ) (170,769,137 ) (125,857,397 ) GROSS OPERATING INCOME 581,142,075 594,772,232 516,874,733 177,188,797 192,134,609 185,114,892 (19,078,375 ) (21,530,315 ) (26,354,109 ) 739,252,497 765,376,526 675,635,516 Depreciation and amortization expense (117,337,553 ) (132,600,381 ) (124,835,559 ) (36,685,324 ) (30,399,304 ) (29,082,449 ) 1,338,771 1,339,075 716,346 (152,684,106 ) (161,660,610 ) (153,201,662 ) Impairment losses (reversal of impairment losses) recognized in profit or loss 55,494 (30,785,531 ) 9,793,653 (7,993,311 ) (5,141,179 ) (6,738,750 ) — — — (7,937,817 ) (35,926,710 ) 3,054,903 OPERATING INCOME 463,860,016 431,386,320 401,832,827 132,510,162 156,594,126 149,293,693 (17,739,604 ) (20,191,240 ) (25,637,763 ) 578,630,574 567,789,206 525,488,757 FINANCIAL RESULT (36,610,248 ) (35,678,632 ) (114,252,182 ) 6,411,837 8,579,316 12,294,531 7,783,757 6,616,146 4,088,867 (22,414,654 ) (20,483,170 ) (97,868,784 ) Financial income 5,273,672 6,150,751 234,822 12,894,635 14,289,185 13,308,032 3,494,381 2,665,965 1,727,315 21,662,688 23,105,901 15,270,169 Cash and cash equivalents 3,077,708 2,150,797 152,518 1,975,564 1,680,365 634,961 3,323,751 — 1,778,538 8,377,023 3,831,162 2,566,017 Other financial income 2,195,964 3,999,954 82,304 10,919,071 12,608,820 12,673,071 170,630 2,665,965 (51,223 ) 13,285,665 19,274,739 12,704,152 Financial costs (50,851,829 ) (55,701,778 ) (64,206,719 ) (7,094,366 ) (6,488,659 ) (1,801,829 ) 4,435,313 3,991,055 (692,150 ) (53,510,882 ) (58,199,382 ) (66,700,698 ) Bank borrowings (261 ) (2,033,835 ) (129,350 ) (12,299 ) (476 ) (1,659 ) (25 ) — (494 ) (12,585 ) (2,034,311 ) (131,503 ) Secured and unsecured obligations (42,708,253 ) (44,268,489 ) (51,697,708 ) — — — — — — (42,708,253 ) (44,268,489 ) (51,697,708 ) Other (8,143,315 ) (9,399,454 ) (12,379,661 ) (7,082,067 ) (6,488,183 ) (1,800,170 ) 4,435,338 3,991,055 (691,656 ) (10,790,044 ) (11,896,582 ) (14,871,487 ) Profit (loss) from indexed assets and liabilities 145,608 606,075 3,600,187 761,262 974,891 973,087 9,796 50,874 265,803 916,666 1,631,840 4,839,077 Foreign currency exchange differences 8,822,301 13,266,320 (53,880,472 ) (149,694 ) (196,101 ) (184,759 ) (155,733 ) (91,748 ) 2,787,899 8,516,874 12,978,471 (51,277,332 ) Positive 19,563,838 48,546,664 26,738,738 58,288 609,359 (235,571 ) 134,942 65,643 3,930,935 19,757,068 49,221,666 30,434,102 Negative (10,741,537 ) (35,280,344 ) (80,619,210 ) (207,982 ) (805,460 ) 50,812 (290,675 ) (157,391 ) (1,143,036 ) (11,240,194 ) (36,243,195 ) (81,711,434 ) Share of profit of associates accounted for using the equity method (2,696,904 ) 7,878,201 8,905,045 — 1,818 5,248 — (1,819 ) (5,248 ) (2,696,904 ) 7,878,200 8,905,045 Other gains (losses) 113,088,869 121,490,974 4,015,401 157,458 (831 ) 14,660,351 (5,131 ) (81 ) 1,379,993 113,241,196 121,490,062 20,055,745 Gain (loss) from other investments 105,462,769 121,457,430 4,309,205 4,026 (831 ) — (5,131 ) (81 ) (346 ) 105,461,664 121,456,518 4,308,859 Gain (loss) from the sale of property, plant and equipment 7,626,100 33,544 (293,804 ) 153,432 — 14,660,351 — — 1,380,339 7,779,532 33,544 15,746,886 Income before tax 537,641,733 525,076,863 300,501,091 139,079,457 165,174,429 176,253,823 (9,960,978 ) (13,576,994 ) (20,174,151 ) 666,760,212 676,674,298 456,580,763 Income tax (112,099,519 ) (83,216,935 ) (76,655,819 ) (34,030,322 ) (32,589,362 ) (36,956,051 ) 2,787,540 4,403,115 3,999,271 (143,342,301 ) (111,403,182 ) (109,612,599 ) Net income from continuing operations 425,542,214 441,859,928 223,845,272 105,049,135 132,585,067 139,297,772 (7,173,438 ) (9,173,879 ) (16,174,880 ) 523,417,911 565,271,116 346,968,164 Net income from discontinued operations — — — — — — — — — — — — NET INCOME 425,542,214 441,859,928 223,845,272 105,049,135 132,585,067 139,297,772 (7,173,438 ) (9,173,879 ) (16,174,880 ) 523,417,911 565,271,116 346,968,164 Net income attributable to: 425,542,214 441,859,928 223,845,272 105,049,135 132,585,067 139,297,772 (7,173,438 ) (9,173,879 ) (16,174,880 ) 523,417,911 565,271,116 346,968,164 Shareholders of Enel Chile — — — — — — — — — 349,382,642 384,159,865 251,838,410 Non-controlling interests — — — — — — — — — 174,035,269 181,111,251 95,129,754 Line of Business Generation Distribution Holdings, eliminations and others Total 12-31-2017 12-31-2016 12-31-2015 12-31-2017 12-31-2016 12-31-2015 12-31-2017 12-31-2016 12-31-2015 12-31-2017 12-31-2016 12-31-2015 STATEMENT OF CASH FLOWS ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Cash flows from (used in) operating activities 488,157,362 490,177,558 428,211,622 170,628,958 148,354,968 194,756,025 (23,182,620 ) (23,847,670 ) (46,436,120 ) 635,613,720 614,684,856 576,531,527 Cash flows from (used in) investing activities (91,867,647 ) (34,631,759 ) (255,251,615 ) (74,464,531 ) (55,007,620 ) (82,947,418 ) 19,886,401 26,150,787 41,457,686 (146,465,777 ) (63,488,592 ) (296,741,347 ) Cash flows from (used in) financing activities (301,835,211 ) (374,835,378 ) (175,094,207 ) (76,923,085 ) (88,519,047 ) (98,304,569 ) 61,162,775 17,487,453 (43,674 ) (317,595,521 ) (445,866,972 ) (273,442,450 ) The holdings, eliminations and others column corresponds to transactions between companies in different lines of business, primarily purchases and sales of energy and services |