Enel Chile S.A.
Annual Report 2015

Plain-text annual report

Enersis Annual Report 2015 (The Extraordinary Shareholders’ Meeting held on December 18, 2015 approved the change of its corporate name to Enersis Américas S.A., effective from March 1st, 2016).  Index > Letter from the Chairman > Highlights 2015 > Main Financial and Operating Indicators > Company Identification and Governing Documents > Ownership and Control > Administration > Human Resources > Stock Exchange Transactions > Dividends > Investment and Financing Policies > Company’s Business > Investments and Financial Activities > Risk Factors > Company Restructuring > Electricity Industry Regulatory Framework > Description of Electricity Business by Country > Participation in subsidiaries & associates and schematic table > Significant Event of the Entity > Identification of the Subsidiaries and Associates Companies > Declaration of Responsibility > Consolidated Financial Statements > Management’s Analysis of Consolidated Financial Statements > Summarized Financial Statements of the Subsidiaries  Letter from the Chairman Dear shareholders, You are holding the Annual Report and Financial Statements renew our perceptions and adapt our organization to the of Enersis Américas S.A. (“Enersis”), formerly Enersis S.A., demands of a world that doesn’t stop evolving. which corresponds to the period ended on December 31, 2015. In these chapters and pages, you will be able to review Today, our task ahead is to build a company that engages in detail the main results, improvements and milestones of more in dialogue, more open, closer, and more receptive the Company and its subsidiaries in Argentina, Brazil, Chile, to the needs of the country, to the surroundings where Colombia and Peru. we operate and to our customers. To that end we need to assure more profitability and efficiency, and to build a new First of all, I would like to thank deeply to the Members of Enersis, one Enersis with a clear path of development for the Board for the trust that they placed in me when being the decades to come. appointed Chairman of the Board on June 30, 2015. During these months I have been able to acknowledge the human and professional quality of the executives, professionals and employees of this Group. This cooperation has been fundamental to develop a successful project such as Enersis, of which we all feel very proud. My gratitude goes also to them. Corporate Reorganization In this context and with this purpose in mind, the Board of Directors proposed to all our shareholders a corporate Today Chile and the Region are going through a deep reorganization project that will enable the Company to transformation. As we have already done in the past, address successfully the challenges ahead, whose main our duty is to know to be able to anticipate the changes objective is to adapt our strategies to the requirements’ to come in the future, and continue to be an important development of each market where we operate, simplify source of value for the country, for the communities our corporate structure and improve the decision making that receive our operations, for our employees and our process within the Company. This restructuring proposal shareholders. This is why we will continue to fulfill our leaded our mode of action during most part of 2015 and of vocation to be a development driver for the Region. the current year. I am confident that we can successfully accomplish this I hereby provide a detailed description of the main aspects of task, to which end we need to foster the best of our history Enersis’ Board of Directors’ proposal, which was approved at and prompt the changes required by this new stage of the Extraordinary Shareholders Meeting held on December our development. Today the latter means to know how 18, 2015, and which I am sure that will prompt a new and to consolidate our accomplishments and to have a clear successful stage of development for the Company. vision of the future for our business; to learn from the things that we have might have done better: to improve In essence, this corporate reorganization process means to our practices and procedures, and to know how to get divide the generation and distribution of electricity power the maximum of the experience and abilities deployed performed in Chile from the rest of Latin American markets by our controlling company worldwide; and ultimately, to where the Enersis Group operates. To this end, the proposal 4 2015 Annual Report Enersis was to carry out this restructuring process in two successive Américas S.A. will absorb Chilectra Américas S.A. and Endesa stages, in accordance with Chilean regulations. Américas S.A. through a merger by incorporation process, in Similarly, the first phase would consist on the division of and Endesa Américas S.A. will become shareholders of which the minority shareholders of Chilectra Américas S.A. Enersis S.A., Empresa Nacional de Electricidad S.A. (“Endesa Enersis Américas S.A. Chile”) and Chilectra S.A. In the case of Chilectra, the result of the division is the creation Chilean Corporations Law, among which those that prescribe of a new company, “Chilectra Américas S.A.”, to which the that each of the merged company will repurchase shares equity participations, assets and liabilities of Chilectra abroad, to its shareholders that have exercised their Withdrawal are assigned. Rights at the prices defined by law. To this end, we will comply with the relevant provisions of the In the case of Endesa Chile, the procedure is similar, and a new company is born after the division, “Endesa Américas S.A.”, to which the equity participations, assets and liabilities of Endesa Chile abroad, are assigned. In this way, each of the original entities, namely, Chilectra and Endesa Chile, keep the entire business that they currently develop in Chile. In the case of Enersis, the proposal also includes the division of the company, resulting a new company from this process, “Enersis Chile S.A.”, to which the equity participations, assets and liabilities existing in Chile, are assigned. This includes the aforementioned participations in Chilectra and Endesa Chile. Hence, the divided company of Enersis, who logically changes its name to “Enersis Américas S.A.”, now comprises the equity participations of the Company abroad. The abovementioned corporate divisions were effective from March 2016, and out of this process three new companies were created. In the second stage, the corporate realignment will take place if it’s approved by the shareholders of the companies involved, the outcome will be that Enersis Letter from the Chairman 5 Other relevant matter is the already announced intention Energy generation during the period was 60,403 GWh; of Enersis Américas S.A. to present a Public Share Offering figure slightly higher than the 60,299 GWh generated the (Oferta Pública de Acciones, “OPA”) issued on the total previous year. On the other hand, physical sales increased share capital of the Company, pending the approval of the 4.1% with respect to 2014, reaching 72,039 GWh, mainly aforementioned merger by the Shareholders Meetings of due to the sales increase in Chile, Colombia y Argentina. Enersis Américas, Endesa Américas and Chilectra Américas. This Public Share Offering will include every shares and Similarly, in distribution, energy demand in the Group’s American Depositary Receipts (“ADRs”) issued by Endesa concession areas increased 2.3% and physical sales were Américas not owned by Enersis Américas. Thus, the 78.732 GWh, 1.6% higher than 2014. On the other hand, Public Share Offering will include up to 40.02% of Endesa our clients’ base exceeded 15.2 million, representing an Américas’ share capital at the price already informed to the increase of over 448,000 customers with respect to 2014. market of 285 Chilean pesos (or its equivalent in US dollars as of the payment date in the case of the ADRs), subject Total revenues were 7,698,847 million Chilean pesos in to the further terms and conditions to be detailed in due 2015, being 6.1% higher than the previous year. This figure time on schedule with formulating such offer. In this way, is explained by the combination of growth of energy sales we will provide certainty to the transaction and confidence (which grew 4%) and higher prices (raising 7% in the year). on the fair price for those shareholders who don’t share Enersis’ vision regarding the future of the Group. As of December 2015, Enersis’ accrued EBITDA was 2,289,133 million Chilean pesos, similar to the 2,300,020 The Board of Directors I chair is convinced that the work million Chilean pesos of 2014. This outcome is explained by done represents the best suitable way for Enersis to higher revenues, which almost completely offset the 8,1% perform the changes needed to continue developing increase of procurement and services costs recorded by strongly and successfully to confront the challenges of the the company. Chilean and Regional markets. The Enersis’ Extraordinary Shareholders Meeting held on December 18, 2015 The breakdown by business shows that EBITDA of the confirmed this conviction. generation business increased 80,674 million Chilean 2015 Results pesos. This is mainly explained by the better results obtained in Chile, due to better sales prices, higher energy sales and the effect of consolidating 100% of GasAtacama during the whole year 2015. This result was partially offset Despite the difficult environment experienced by most of by lower EBITDA in Colombia and Brazil, mainly due to the the countries in the region, which has shown in the slower exchange rate effect. growth rates of their economies, the company obtained positive returns, thus showing its sound management. Allow In distribution, however, EBITDA was 5.9% lower than me to comment some of the most important ones. the previous year, reaching 966,679 million Chilean pesos. 6 2015 Annual Report Enersis This is mainly explained by the 46.3% drop of EBITDA in They are key factors for our current accomplishments and the Brazil, triggered by higher losses and lower energy demand, ones we will continue to achieve in the years ahead. resulting from the challenging macroeconomic situation of that country. This was partially offset by the recognition of In addition to what I already mentioned regarding the corporate 317,492 million Chilean pesos in Argentina due to Resolution reorganization process, certainly there have been many other N° 32/2015, through which the Argentinean Government milestones that highlighted in 2015. I would like to remark approved the transitory increase of the revenues of Edesur some of the most important ones. for energy payment, wages and goods and services provisions, and also due to the better results accounted in In generation, in Chile the big news for the Group was the Peru and Chile. decision of the Environmental Assessment Commission of the Biobío Region, in March last year, to approve the In this way, net income attributable to Enersis’ shareholders optimization project of Bocamina II of Endesa Chile. reached 661,587 million Chilean pesos during the current Consequently, it begins an ambitious process, which period. This figure is 8.4% higher than the previous year. comprises innovative technical and environmental This growth was mainly explained by the aforementioned improvements in its operation. Moreover the Company has good operational performance of the generation business, begun a new stage with regards to its relationship with together with the improvement of net financial result. the community, which is shown in direct and transparent During 2015, Enersis carried out investment of 1,362,562 development for the citizens living in the district of Coronel, benefits, and a constant work to build a common vision of million Chilean pesos, higher investments than the 1,086,410 in the Biobío Region. million Chilean pesos accounted in 2014. Investments in growth were mainly focused in the Colombian hydro An example of the environmental improvements introduced power plant El Quimbo (already finished), environmental was the commissioning of the Johnson filters, which have improvements of the Chilean coal-fired power plant advanced technology, and reduces almost completely the Bocamina II, works start-up of the Chilean hydro power plant intake of hydro biological organisms to the cooling system of Los Cóndores, and higher investments in the distribution the power plant. This initiative is added to the other technical business in Brazil. and environmental improvements such as the coverage of the 2015 Milestones coal collection courts and online air quality monitoring. In this way, Bocamina II became available for the economic dispatch of the CDEC-SIC Operations Center on July 2 last Dear shareholders, I would like to thank once again for the year. effort, hard work and determination showed by each one of our employees, professionals and technicians, who have been the Always in Chile, I would like to highlight the progress of Los foundation of the success and development of the Company. Cóndores project, located in El Maule region, a 150 MW of Letter from the Chairman 7 installed capacity hydroelectric power plant with and an considers a capacity expansion of up to eight times the initial investment of over 660 million dollars. This initiative is capacity, which can reach 200 MVA, equivalent to the supply progressing according to plans, and in January 2016 the of 500 thousand homes. TBM (Tunnel Boring Machine) double shield, entered the Construction Window of the Adduction Tunnel of the future In Colombia, our subsidiary Codensa duplicated the plant. transformation capacity of the Bacatá substation, transforming its 500kV in the largest in Colombia, which will In Colombia, I am glad to inform that the construction of our enable the Company to face the growing energy demand 400 MW hydroelectric El Quimbo project was completed; of the country. Always y Colombia, an important milestone whose average annual energy generation to the Colombian was the full compliance with the goal of the Telecontrol system will be 2,216 GWh, equivalent to the 4% of the project, with which Codensa will modernize its distribution country’s total energy consumption. A total of 6,500 people network in Bogota and Cundinamarca. So, during 2015, 1,674 worked in the construction of this project that started in 2008. equipments were installed, which enabled a more efficient Additionally, our SALACO Project was completed, which During 2015 an investment of approximately 69,500 million comprised the rehabilitation of six generating units in Salto Colombian pesos was carried out, on top of the 238,000 II, Laguneta and Colegio power plants, currently known as million Comobian pesos total investment forecasted for a operation of the network and reduce service failures. Dario Valencia Samper. This project adds 144,8 MW to the three-year period. Interconnected System in Colombia, through the generation water edge technology, one of the existing energy generation systems more sustainable and clean, and taking into account Finally, I would like to highlight our bet for the natural gas that it’s a run-of-the-river power plant. commercialization, through the inauguration of the regasification plant by Endesa Chile in Talca. This new plant In Argentina, on the other hand, we completed the enables that natural gas and its many benefits to be a reality commissioning of the four moto-generators with gasoil today for homes and companies in the area. This bet was installed by El Chocón hydroelectric power plant in the site of possible thanks to an alliance signed with GasValpo, through Costanera power plant, process whose costs was within the Energas and Productos Fernández. In this way, we contributed originally defined budget and without any accidents recorded. with a highly efficient energetic alternative, respectfull with In distribution, I would like to highlight the connection of the new Chicureo substation to the electricity system in the Metropolitan Region, in Chile. I a first stage, its capacity is 25 MVA, serving approximately 30 thousand homes. The the environment and with competitive prices. New Projects second stage, whose objective is to supply the forecasted Dear Shareholders, this Group’s constant vocation electricity demand growth in the north area of Santiago, has been to accompany, through innovative energetic 8 2015 Annual Report Enersis solutions, the development of each market where we is that we are starting a new road full of challenges, operate. This commitment has become true year after which will lead Enersis to become a closer company to year, through our different generation and distribution whom live nearby our facilities, with more dialogue and projects, so therefore the companies and people may in harmony with the needs of the society, and who will continue growing and having access to higher welfare join the development of the countries where we operate levels. in a relevant manner. I am certain that Enersis counts on the professional talent and commitment to successfully To this end, in July 2015, the Board of Directors of Endesa embrace this challenge, and therefore continues to be a Chile defined a portfolio of investment initiatives for the source of value for the communities, its employees and next years, which is comprised by 36 projects, to be shareholders. developed in four countries, with total installed capacity of 6,300 MW. Francisco de Borja Acha Besga To develop this portfolio, Endesa Chile has formulated a new approach that incorporated the history of success of the Group, it adapts to the new social reality of Chairman the country, and undertakes the learnings we have accomplished considering the things that we would have made better in the past. In particular, our current focus is to develop projects that: > Have the most expedite approval processes; > Allow a faster execution; > Count on assured supply contracts, thus guaranteeing fast return of investments; > Are consistent with the development of the communities involved and the society in general. We will not develop projects that are not required by the country. In this sense, we are building a new way to interact with all of our stakeholders, incorporating more professionals, more resources and prioritizing the early insertion of our projects in the communities. Dear Shareholders, I will like to conclude this message mentioning that the Company’s conviction and my own Letter from the Chairman 9  Milestones 2015 SALACO Project finishes The rehabilitation of six generating units (from Salto II, Laguneta and Colegio power plants, currently known as Dario Valencia Samper) which added 144.8 MW to the Interconnected System in Colombia, through the run-of-the-river generation, one of the generation systems more sustainable and clean that exists, taking into account that its operation needs the river current only. Historical Record of Generation in the Pagua Chain The energy generation accumulated annually in the Paraíso y Guaca Power Plants, in Colombia reached a historical record of 4345.61 GWh, exceeding in 2.8% the generation of 2013. This good result was obtained due to the reliable operations and maintenance management, which enabled the high availability of the six units of generation of the Pagua chain. FEBRUARY Endesa Chile announced the new corporate structure The Board of Directors of the company approved the new corporate structure and the appointment of the new executives, in line with the challenges and goals defined by the Group. As such, Ramiro Alfonsín, Deputy Executive Officer of the company, was appointed also Finance and Administration Officer, thus assuming both responsibilities. Among the appointments, Claudio Helfmann was appointed Business Development Officer; Bernardo Canales was appointed Engineering and Construction Officer, and Humberto Espejo assumed as Trading and Commercialization Officer. The organizational structure of Endesa Chile is comprised by the Executive Officer, deputy Executive Officer, finance and administration Officer, General Counse, planning and control Officer, trading and commercialization Officer, business development Officer, engineering and construction Officer and communications Officer. ENERO Luca D´Agnese assumes the position of Executive Officer of Enersis The Board of Directors of Enersis in session held on January 29, 2015 approved the appointment of Luca D´Agnese as Executive Officer of the Company. Since July 2014, Luca D’Agnese held the position of Business Director of the Eastearn Europe business of the Enel group, being also Chairman of Slovenské Elektrárne, position he assumed in May 2014, after three years as country manager of the group in Romania. Endesa Chile closed the sale of El Melón Tunnel Endesa Chile, together with its subsidiary Compañía Eléctrica Tarapacá, accepted the binding offer presented by a private fund managed by Independencia SA, for the 100% of its subsidiary El Melón Tunnel, for $25,000 million. The sale of El Melón Tunnel is part of the assets’ sale process of non-strategic assets of the Group. Endesa Chile provisions US$121 million for the impairment of the HidroAysén investment The Board of Directors of Endesa Chile, in session held on January 29, decided to account an impairment provision for its participation in HidroAysén for $69,066 million, equivalent to US$121 million, which affected the net result of the company in 2014. The memorandum of agreement that closes the Indigenous Consultation process for the Neltume- Pullinque transmission line is signed With the signature of the Final Memurandum of Agreement between the Community Juan Quintuman and the Environmental Evaluation Service (SEA) of Los Ríos region, and the ratification from Endesa Chile of the subjects included in the document, the Indigenous Consultation process that begun on May 2013, was completed. The agreements and compensations include infrastructure projects, housing improvements, and other initiatives for the benefit of minors and senior citizens. The natural gas-fired power plant San Isidro obtains the certification of the Energy Management Systems The natural gas-fired power plant that Endesa Chile operates in the Valparaíso Region obtain the certification for the implementation of the Energy Management Systems (Sistema de Gestión de Energía, SGE), on the basis of the international norm ISO 50001, Energy Management Systems, and whose purpose is to improve the performance, increae efficiencies and reduce environmental impact, and also to broaden its competitive advantages, without impairing productivity. On December 2013, San Isidro became the first generation power plat in the country to obtain the Energy Efficiency Seal, acknowlegdement granted by the Energy Ministry. Endesa Chile stopped the development of Punta Alcalde power plant The board of Directors Endesa Chile decided to stop the development of Punta Alcalde projets and its transmission line, while awaiting to remove the uncertainty with regards to its profitability, provisioning non-recoverable assets value of $12,582 million Chilean pesos (equivalent to US$22 million), amount that affected the net result of the Company for the period 2014 in $9,184 million. 10 2015 Annual Report Enersis MARCH Enersis appointed Pedro Urzúa as new Institutional Relations Officer in Chile Pedro Urzúa took the position on March 2, 2015. He is journalist from the Universidad de Artes y Ciencias de la Comunicación (UNIACC) and has served as Institutional Relations Officer of Enel Green Power of Chile and the Andean Countries, Corporate Affairs Director of Enap, Director of Fundación Acción RSE and Communications Director of ENAP Sipetrol, among other positions. The Environmental Evaluation Commission of the Biobío Region approved the optimization project of Bocamina II The entity approved the optimization project of Bocamina II power plant, thus complying with an important stage in the plant evaluation process, which will drive important improvements such as the coverage of the coalfields and the installation of filters for the cooling system with seawater. First public charging facility in Colombia With an investment of nearly US$ 92,000, and real capacity of up to 96 recharges per day, which allows serving 280 vehicles per month. Its service delivery is 24/7 for all of the private electric vehicles in Bogotá. This project was developed together with BMW, Nissan, Renault and ByD, and it’s equipped with connectors compatible with every brand of vehicles. Emgesa was awarded with the Best Corporate Governance Award The English magazine World Finance acknowledged Emgesa as the Colombian company with the best Corporate Governance in 2015. This award is granted after a voting process made by the readers of the magazine and financial institutions, in which they chose the company that fulfills with the best Corporate Governance standards in the country. MAY Endesa Chile’s Cipreses power plant reached sixty years generating hydroelectric energy from El Maule Region Cipreses was the first hydroelectric power plant built in the basin of El Maule River in May 1955. Cipreses’ installed capacity is 106 MW and load factor higher than 75% in years of normal rainfall. Endesa Chile begun the commissioning process of Bocamina II After obtaining the Environmental Qualification Resolution (RCA) Bocamina II, Endesa Chile took a step further for the restart of operations of the thermoelectric facilities in Coronel. On May 20, the Superintendency of the Environment (SMA) responded favorably regarding the Endesa Chile’s request to provide a temporary technical solution for the suction of cooling waters. APRIL The Board of Directors of Enersis has decided to start with the corporate reorganization analysis of its generation and distribution activities in Chile and in South America On April 28, and by unanimity of its members, the Board of Directors of Enersis decided to start with the corporate reorganization analysis aiming to divide the generation and distribution activities developed in Chile, from those carried out in the rest of the region. The objective of this reorganization is to solve certain duplicities and redundancies resulting from the complex corporate structure of the Enersis Group and the generation of value for all of its shareholders. is appointed Enrico Viale Chairman of Endesa Chile On the date on which the Ordinary Shareholders’ Meeting was held, on April 27, the renovation of the members of the board took place. The Directors appointed were Enrico Viale, Ignacio Mateo, Francesco Buresti, Vittorio Vagliasindi, Francesca Gostinelli, Felipe Lamarca, Isabel Marshall, Enrique Cibié and Jorge Atton. In the Board of Directors of Endesa Chile’s session, Enrico Viale was appointed Chairman of the Board, while Ignacio Mateo was appointed Vice Chairman. Enrique Cibié, Jorge Atton and Felipe Lamarca comprised the Directors’ Committee. Beginning of tests in Bocamina I including environmental improvements Endesa Chile started the testing process in Bocamina I with the objective of restarting the operation of this unit, which was interrupted on September 2014 for the implementation of environmental and technical improvements, in the context of a major maintenance program. With this, the company take a step further in the operations normalization process of the facilities located in Coronel, thus carrying out all the tests needed to ensure the good performance of the improvements made. Endesa Chile received the Environmental Qualification Resolution for Bocamina II The Environmental Evaluation Commission (CEA) of the Biobío Region notified Endesa Chile of the Environmental Qualification Resolution (RCA) of the optimization project of Bocamina II, thus ratifying the positive vote obtained by the initiative on March 16, 2015. With this, the company begun the works to provide new standards for the Bocamina facilities, and place it as the best power plants of its kind in Chile, thus containing every technical and environmental improvements requested. Chilectra’s installation of ten charging facilities in Santiago was completed With the purpose of Con el objeto de facilitate and promote the electric portability in Chile, Chilectra completed the installation of 10 charging facilities in Santiago, thus establishing the first interconnected points of charge network for four districts in the Metropolitan Region. Highlights 2015 11 Chilectra connects the new subestation Chicureo to the electric system of the Metropolitan Region In the first stage its capacity is 25 MVA, equivalent to the supply of approximately 30,000 homes. For the second stage, and according to the electricity growth demand proyections for the north area of Santiago, the substation considers the future expansion of up to eight times its initial capacity, reaching 200 MVA, equivalent to the supply of 500 thousand homes. Codensa doubles the transformation capacity of Bacatá substation As part of its infrastructure continuous improvement, Codensa expanded the Bacatá electric substation, making it the largest in Colombia with 500kV. With this works, the Company has strengthen to cope with the energy demand growth in Bogotá and also to improve the service quality levels, thus contributing to the competitiveness of the city and of the Cundinamarca department. JUNE The Board of Directors of Enersis informs the resignation of Jorge Rosenblut and the appointment of Borja Acha On June 30, the Board of Directors of Enersis announced the resignment effective immediately of Mr. Jorge Rosenblut as Director and Chairman of the Board of Enersis in his replacement. It was also informed the appointment of Mr. Borja Acha Besga as Chairman and Director of Enersis. Since 2012, Mr. Borja Acha has served as Chiel of Legal and Corporate Affairs of the Enel Group, parent company of Enersis. On Friday June 26, Carolina Schmidt presented her resignment due to personal reasons to the Board of the Company. The Board appointed Mr. Herman Chadwick Piñera in her replacement. Mr. Chadwick is lawyer from the Pontificia Universidad Católica de Chile. Start of the filling up of El Quimbo The maneuver that begun the filling up the dam was carried out after the hydrological conditions of the Magdalena River became suitable to guarantee the security of the activity. The closing of the two gates –being structures of 65.6 tons each- was developed with an average flow of 500 cubic meters per second and counted with the support of more than 300 people. Bocamina II became available for the electric system The second unit of Bocamina became available for dispatch of the Operations Center of the CDEC-SIC. This took place after receiving the Environmental Qualification Resolution (RCA) of the optimization project Bocamina II, and after introducing a series of technical and environmental improvements such as the coverage of the coverage of coalfields, the installation of advanced technology filters for water suction and online air quality monitoring, among others. JULY Bocamina I power plant restarted commercial operations Endesa Chile informed that its thermoelectric power plant Bocamina I, which has 128 MW of installed capacity, restarted commercial operations, and became available for immediate dispatch as required. In April 2015 the unit started the testing process with the objective of recommencing operations. Meanwhile, the second unit of Bocamina, wich has 350 MW of installed capacity, became available for the Load Economic Dispatch Center of the Central Interconnected System (CDEC-SIC), after the start-up process and the operational tests that begun in May. The Board of Directors of Endesa Chile defines its portfolio of projects The Board of the company reviewed and defined the portfolio of projects, according to the new vision of the company, which focuses on sustainability and the creation of value for the communities and its shareholders. As being announced in the Shareholders Meeting in April, the Board started a review of the portfolio of projects, thus giving priority to a series of initiatives of fast development, in cooperation with the communities and to be implemented guaranteeing the highest environmental and technological standards. In the four countries where the company operates, Argentina, Colombia, Peru and Chile, the portfolio consists on 6,300 MW of possible projects, which depend on energy demand and the market context of each country. Abradee Award 2015 Coelce was chosen as the best energy distribution company in Brazil, and for the ninth consecutive year, the Best distribution company in the North East of the country. Also, Coelce highlights among the four better companies in terms of Management Quality. 12 2015 Annual Report Enersis AUGUST Generation equipments for Los Cóndores power plant pass their first exam in Germany One of the main milestones of the hydroelectric project Los Cóndores was accomplished in Germany, where the essays in reduced model of the two generating units turbines were carried out successfully. The project is under construction in El Maule Region and will have an installed capacity of approximately 150 MW. In order to supervise this process, specialists of the company travelled to the hydraulic laboratory of the company Voith Hydro, located in the city of Heidenheim, who validated the tests and the results obtained, thus releasing the hydraulic design and initiating the detail designs of the equipments for main generation. Codensa launches a Mobile Application for Customers The mobile application Móvil Codensa is a solution that allows customers to know information of the values and billing dates through their accounts register. Likewise, through GPS the application enables users to generate and look up the failure reports that migh impact their sector, on topics related to public lighting, energy supply, meters and infrastructure. Additionally, if the user wants to know the location of Codensa Service Centers and Payment Points, which may find their search with the nearest location or through a pull-down list. Enel Brazil ranked 68 among 135 companies of the Great Place to Work ranking This award is granted jointly by the Great Place to Work Institute (GPTW) and Época magazine. In addition, Enel Brasil ranked sixth in the Best Company to Work in Rio de Janeiro. Chilectra introduced Chispers, the first plataform that enables the sharing of energy to charge mobile phones wirelessly, without any cost and through a community On September 22, the Innovation team of Chilectra launched Chispers, a social network that enables the sharing of energy to charge mobile phones wirelessly, without any cost and through a community. The system works through a network of wireless charges located in coffee shops, universities and other public spaces. Codensa and Emgesa ranks among the ten companies that promote the gender equity in Colombia The companies were selected for theis strategies and promotion of employment equity to be part of the first ranking of corporate gender equity in Colombia, carried out by Aequales and the Colegio de Estudios Superiores de Administración (CESA). These are the only companies of the energy sector and public services to rank top ten. SEPTEMBER The tunneling machine that will be part of Los Cóndores project’s construction completed its evaluation process in United States In Ohio, United States, in the Robbins Company factory, the tests of the TBM machine -Tunnel Boring Machine- was made. This equipment ‘s duty is to dig the nearly twelve meters of the adduction tunnel of Los Cóndores power plant, therefore allowing the transportation of the waters of El Maule lagoon dam to the turbine hall of the power plant. Specialists from Endesa Chile, who verified that its development agrees with the requirements defined by the company, supervised the process. Chilectra became the first utilities company worldwide that allows customers to pay the bill through Twitter Since September 29, 2015, as part of the digitalization process that Chilectra in pushing forward, the electricity bill now can be paid through Twitter, the second most popular social network in the country, with almost two million active accounts. This a step forward in terms of innovation, and the service is provided by #pagotuit, a plataform developed jointly with Uanbai, thus helping Chilectra to become the first utilities company worldwide to have a payment system through this network. Chilectra’s installation of ten charging facilities in Santiago was completed With the purpose of Con el objeto de facilitate and promote the electric portability in Chile, Chilectra completed the installation of 10 charging facilities in Santiago, thus establishing the first interconnected points of charge network for four districts in the Metropolitan Region. Codensa Launches the Mobile Application for the recharge of electric vehicles, EVA This system enables people to manage the reservation of points of charge compatible with their electric vehicles and also to obtain information of the charging stations. It may be automatically managed, thus granting the same information features and charge to the final customer. This is a new concept in Colombia and worldwide, being the only existing APP able to operate different brands of charging units. Enel Braz and the “House of the Future” in Expo Milan 2015 In Expo Milan 2015, Enel Brazil presented the project consisting of the first house made with the crowdsourcing method, where Internet users made their contributions in the website www.nosvivemosoamanha.com.br with ideas for the construction of the “House of the Future”. The house will be completed at the end of the first half of 2016 in the city of Niterói, Río de Janeiro, Brazil. The project is being executed thanks to the energy efficiency program of the distribution company Ampla. Highlights 2015 13 NOVEMBER Endesa Chile informed the Superintendent of the Environment the commissioning advance of the Johnson filters for Bocamina II Endesa Chile confirmed to the Superintendent of the Environment, Cristián Franz, the commissioning advance of the filters for Bocamina II, being operational since October 27, two months earlier than the date committed with the authority. Municipality of Coronel, Fundación Integra and Endesa Chile inaugurated the nursery school Rayún With the attendance of the Major of Coronel, Leonidas Romero, the new nursery school and care room Rayún was inaugurated, being a modern facility that includes optimal installations to cater boys and girls from the area. Endesa Chile contributed with $250 million to the design and construction of the facilities, located in La Peña area, and caters more than 100 children with four education levels, from 84 days of age to 4 and 11 months old. Chilectra was awarded the electricity supply for Nuevo Pudahuel Airport Consortium After a bidding process, Chilectra was awarded the requirements of electricity supply for the period 2016 through 2018 of the new concessionaire of the International Santiago Airport, “Nuevo Pudahuel”, with which the electricity company stays as the main energy supplier of the main airport of the country. The project of the new concession will require additional energy, because the new building will be larger than the previous one, with over 175,000M2, together with the renovation of the existing airport in the area for domestic flights, with which the capacity of the airport will reach up to 30 million passengers per year. As such, forecasts indicate that the requirements of energy will double in three years period. OCTOBER Endesa Chile, Energas and PF inaugurated the arrival of natural gas to El Maule Region With the attendance of the Minister of Energy, Máximo Pacheco, the first Regasification Satellite Plant (PSR) of LNG in Chile was inaugurated in Talca, which enables Natural Gas and its numerous benefits to become a reality in the region, both for commercial and for household distribution. The plant, owned by Endesa Chile, is the result of an alliance between the generation company, GasValpo -through Energas- and Productos Fernández, thus incorporating a highly efficient energy alternative, friendly with the environment and who offers competitive prices. The connection of new Johnson filters in Bocamina II begun Endesa Chile begun the connection of advanced technology new filters to the water-harvesting siphon of the generating unit that operates in Coronel. The filters are denominated “Johnson” and will help to minimize the impact in the ocean environment. Enel Brazil ranks among the 150 best companies to work in the “Guia Você S/A Exame 2015” The company stands out in the electricity sector, obtaining the seventh place. This was the first time that all of the companies of the sector participated together in the award. Telecontrol Proyect of Codensa reaches its goal With 100% compliance as scheduled for 2015, Telecontrol project moved forward, with which Codensa in modernizing its distribution networks in Bogota and Cundinamarca. During 2015, 1,674 equipments were installed, thus allowing a more efficient operation of the network to face failures of service, also to know more precisely the location of the failure in a circuit, and to reduce the number of customers affected by the failure. Until now, this technologic solution has enabled the company to decrease their times in approximately 15 minutes. During 2015, there was an investment of approximately $69,500 million Colombian pesos, out of the total value of the initiative of $238,000 million forecasted over three years. Commissioning of El Quimbo After five years of construction, on November 16 the new hydroelectric power plant El Quimbo started-up operations, with the energy generation to the Colombian energy system. The average annual energy of El Quimbo is 2,216 GWh, equivalent to 4% of the demand in Colombia. El Quimbo, together with Betania, will become a generation chain in the Magdalena River contributing with 8% of the domestic demand. Nearly 6,500 people worked in the construction of El Quimbo. Codensa and Emgesa were the first companies of the electricity system to obtain the Labor Equity Seal (Sello de Equidad Laboral)– EQUIPARES This is an initiative of the Labor Ministry of Colombia, endorsed by the Presidential Council for the Women’s Equity and the techinal support of the United Nations Procurement Division (UNPD). This seal certifies the clear focus of the companies in the development of labor equity practices and aim to ensure that men and women have access to the same opportunities. Among the good practices that were highlighted, the ones that stand out are the programs that positively impact the employees’ quality of life and the commitment at every level of the companies to support every program and initiative, and to transform the concept of equity into an important driver of the overall strategy of he companies. 14 2015 Annual Report Enersis Project for the Modernization of Public Lighting with LED Technology Codensa made progresses with the project for the modernization of Bogotá’s public lighting using LED technology, with the installation of nearly 10,500 lights, being the first stage of the plan, which consideres an investment of $19,000 million in 2015. The objective of the project is to improve the lighting in the streets and areas that show the lower safety rates in the city. Among others, important areas and streets such as San Victorino, highway 10, street 72, street 53, Jiménez Avenue and Caracas Avenue were modernized. Endesa Chile will develop a new design for its Neltume hydroelectric project As part of the new sustainability and community relations’ strategy, Endesa Chile will develop generation initiatives with a collaborative approach with the communities. After listening and understanding the cultures and traditions of the communities where the Neltume project is located, the company has decided to study new alternatives of design, especially for the water discharge into the Neltume Lake, which has been presented to the communities in the different dialogues held. With the purpose of starting a new study stage of an alternative that considers the water discharge into the Fuy River, Endesa Chile withdrawed the Environmental Impact Study (Estudio de Impacto Ambiental, EIA) of the power plant, which was under environmental evaluation in the Environmental Evaluation Service (Servicio de Evaluación Ambiental, SEA) of Los Ríos Region. Costanera’s Moto Generators Project The commissioning of the four moto generators with gasoil installed by Hidroeléctrica El Chocón in the facilities of Costanera power plant was accomplished. This work was carried out within the amounts budgeted originally and without recording any accidents. In the reception trials, the contract values guaranteed by Wärtsilä were verified, and the electric studies for the commercial authorization from CAMMESA were completed. Codensa participates in the Solar Decathlon Latin America & Caribbean 2015 with the + HUERTO + CASA project Solar Decathlon is a race promoted worldwide by the Department of Energy of the United States (DOE), and focused on the social and environmental sustainability to raise awareness on the importance of clean energies. With an investment of over $70,000 dollars, Codensa and Emgesa sponsored the + Huerto + Casa project, which consists on an ecological housing and self-sustainable with renewable energy and developed by forty students from Universidad de Los Andes. During the contest, the project received five important awards: sixth place in the general ranking out of the fifteen participating projects; second place in the energy balance category; ranked second in the marketing, communication and social awareness category; third place in urban design and affordability, and honorable mention in the arquitecture category. Codensa and Emgesa raised in the Merco 2015 ranking In the general ranking of the 100 companies with the best reputation in Colombia, Codensa and Emgesa ranked 34, going up 31 positions with respect to 2014. In the sector ranking, the companies ranked fourth, going up two positions with respect to 2014. DECEMBER Enersis delisted its stocks from Latibex On December 4, 2015, Enersis delisted its stocks from Latibex, thus its stocks will no longer trade in that stock exchange. This request was raised by the company and approved by the Consejo de Administración de Bolsas y Mercados Españoles, Sistemas de Negociación, S.A. (Council for the Administration of Spanish Stock Exchanges and Markets, Trading Systems, S.A.). Shareholders approved the corporate restructuring of Enersis Group On December 18, shareholders of Enersis Group, Endesa Chile and Chilectra approved in their Extraordinary Shareholders’ Meetings the aforementioned restructuring of Enersis. In March 2016, the divisions were achieved, and three new companies were created: Enersis Chile, Endesa Américas and Chilectra Américas. As such, six companies remained. In the upcoming months, the mergers will be approved in three Extraordinary Sharehoders’ Meetings of the companies named Americas to be convened. As such, Enersis Américas will operate the electricity generation, distribution and transmission businesses that the group owns in Argentina, Brazil, Colombia and Peru. Meanwhile, Enersis Chile will become the parent company of Endesa Chile and Chilectra Chile. Highlights 2015 15 Main Financial and Operating Indicators Main Financial and Operating Indicators 17 Total Assets As of December 31 of each year (million in nominal pesos)(1) 2010 13,005,845 2011 13,733,871 2012 13,317,834 2013 15,177,664 2014 15,921,322 2015 15,449,079 Total Current Liabilities 6,491,817 6,837,717 6,354,065 6,670,199 7,642,104 7,257,466 Operating Revenues 6,563,581 6,534,880 6,577,667 6,264,446 7,253,876 7,698,847 Ebitda Net Income (2) Liquidity Ratio Debt ratio (3) Generation Business ARGENTINA Number of employees Number of generating units Installed capacity (MW) Electricity generated (GWh) Energy sales (GWh) BRAZIL Number of employees Number of generating units Installed capacity (MW) Electricity generated (GWh) Energy sales (GWh) CHILE Number of employees Number of generating units Installed capacity (MW) Electricity generated (GWh) Energy sales (GWh) COLOMBIA Number of employees Number of generating units Installed capacity (MW) Electricity generated (GWh) Energy sales (GWh) PERU Number of employees Number of generating units Installed capacity (MW) Electricity generated (GWh) Energy sales (GWh) TOTAL Number of employees Number of generating units Installed capacity (MW) Electricity generated (GWh) Energy sales (GWh) 2,261,691 486,227 2,127,368 375,471 1,982,924 377,351 2,251,489 658,514 2,300,020 610,158 2,289,133 661,587 0.97 1.00 1.03 0.99 0.99 0.91 1.31 0.78 1.23 0.92 1.06 0.89 As of December 31 of each year (4) 2010 2011 2012 2013 2014 2015 426 20 3,652 10,940 11,378 193 13 987 5,095 6,790 607 107 5,611 20,914 21,847 444 30 2,914 11,283 14,817 244 25 1,668 8,466 8,598 1,914 195 14,832 56,698 63,430 473 20 3,652 10,713 11,381 202 13 987 4,129 6,828 1,081 104 5,221 19,296 20,315 498 30 2,914 12,051 15,112 247 25 1,668 8,980 9,450 2,501 192 14,442 55,169 63,086 501 20 3,652 11,207 11,852 197 13 987 5,183 7,291 1,141 105 5,571 19,194 20,878 517 30 2,914 13,251 16,304 263 25 1,657 8,570 9,587 2,624 193 14,781 57,405 65,913 628 25 4,522 14,422 16,549 200 13 987 4,992 6,826 1141 105 5,571 19,432 20,406 563 29 2,925 12,748 16,090 316 27 1,842 8,489 9,497 2,853 199 15,847 60,083 69,368 645 25 4,522 14,390 15,276 208 13 987 5,225 7,108 1261 111 6,351 18,063 21,157 589 32 3,059 13,559 15,773 324 27 1,949 9,062 9,916 3,032 208 16,868 60,299 69,230 657 25 4,522 15,204 15,770 194 13 987 4,398 6,541 995 111 6,351 18,294 23,558 484 36 3,459 13,705 16,886 292 27 1,983 8,801 9,283 2,619 212 17,302 60,403 72,039 18 2015 Annual Report Enersis Distribution Business ARGENTINA Energy sales (GWh)(5) Number of customers Energy losses Number of employees Customers / employees BRAZIL Energy sales (GWh)(5) Number of customers Energy losses Number of employees Customers / employees CHILE Energy sales (GWh)(5) Number of customers Energy losses Number of employees Customers / employees COLOMBIA Energy sales (GWh)(5) Number of customers Energy losses Number of employees Customers / employees PERU Energy sales (GWh)(5) Number of customers Energy losses Number of employees Customers / employees Total Energy sales (GWh)(5) Number of customers Energy losses Number of employees Customers / employees As of December 31 of each year 2010 2011 2012 2013 2014 2015 16,759 2,352,720 6.10% 2,627 896 17,233 2,388,605 10.50% 2,849 838 17,338 2,388,675 10.6% 2,948 810 18,137 2,444,013 10.80% 3,320 736 17,972 2,464,117 10.75% 3,823 645 18,492 2,479,559 12.30% 4,142 596 18,777 5,665,195 16.80% 2,484 2,281 19,193 5,867,888 16.20% 2,496 2,351 20,694 6,050,522 16.30% 2,382 2,540 21,767 6,301,582 16.10% 2,370 2,659 22,842 6,500,500 16.42% 2,415 2,732 22,776 6,754,327 17.3% 2,348 2,877 13,098 1,609,652 5.80% 719 2,239 13,697 1,637,977 5.50% 712 2,301 14,445 1,658,637 5.40% 734 2,260 15,152 1,693,947 5.30% 745 2,274 15,690 1,737,322 5.32% 690 2,518 15,893 1,780,780 5.31% 688 2,596 12,515 2,546,559 8.50% 1,083 2,351 12,857 2,616,909 8.10% 1,101 2,377 13,364 2,712,987 7.50% 1,127 2,407 13,342 2,686,919 7.00% 1,036 2,594 13,660 2,772,376 7.19% 1,043 2,658 13,946 2,865,159 7.30% 947 2,771 6,126 1,097,533 8.30% 553 1,985 6,572 1,144,034 8.20% 550 2,080 6,863 1,203,061 8.20% 607 1,982 7,045 1,254,624 7.90% 616 2,037 7,338 1,293,503 7.95% 619 2,090 7,624 1,336,610 8.30% 570 2,191 67,275 13,271,659 9.10% 7,466 1,950 69,552 13,655,413 9.70% 7,708 1,989 72,704 14,013,882 9.35% 7,798 2,000 75,443 14,381,085 9.42% 8,087 2,060 77,502 14,767,818 9.53% 8,590 2,129 78,732 15,216,435 10.10% 8,695 2,206 (1) Accounting figures as requested by the instructions and regulations issued by the SVS. (2) Net Results attributable to the dominant company. (3) Total Liabilities/Equity plus Minority Interest. (4) Until December 31, 2012, the jointly controlled companies were consolidated using the proportionate consolidation method. As of January 1, 2013 the equity method began to be used to account for these joint control companies, as required by IFRS 11, “Joint Arrangements”. This change impacts the accounting of Centrales Hidroeléctricas de Aysén S.A., Inversiones GasAtacama Holding Ltda., and its subsidiaries, Distribuidora Eléctrica de Cundinamarca S.A. and its subsidiaries, and Transmisora Eléctrica de Quillota Ltda. The consolidated financial statements as at December 31st, 2012 and 2011 were restated retrospectively to show the effect of the application of IFRS 11. These changes have no effect on equity or net income, in both cases; they are attributable to shareholders of Enersis. The consolidated financial statements as of December 31, 2010 and previous years enderd on that same date, are presented as they were originally prepared, in accordance with IFRS, under IASB rules, and do not reflect the application of the IFRS 11 standards. (5) Due to changes in the criteria, non-billable consumptions (CNF) are not included in 2014 y 2015. Main Financial and Operating Indicators 19 Company Identification and Governing Documents 20 2015 Annual Report Enersis Company Identification and Governing Documents 21 22 2015 Annual Report Enersis  Identification of the Company Name or company name Domicile Type of company Rut Address Postal code Phones P.O Box Securities Registration number External Auditors Subscribed and paid-in capital (M$) Web site Email Investor Relations telephone Ticker in Chilean stock exchanges Ticker in New York stock exchange Ticker in Madrid stock exchange ADR’s Custodian Bank ADR’s Depositary Bank Latibex custodian bank (2) Latibex link (2) National credit rating agencies International credit rating agencies Enersis S.A. (1) Santiago of Chile, being able to establish agencies or subsidiaries in other parts of the country or abroad Publicly traded company 94,271,000-3 Santa Rosa Nº 76, Santiago, Chile 833-009 SANTIAGO (56-2) 2353 4400 - (56-2) 2 378 4400 1557, Santiago Nº 175 Ernst & Young 5,669,280,725 www.enersis.cl informaciones@enersis.cl (56-2) 2353 4682 ENERSIS ENI XENI Banco Santander Chile Citibank N.A. Banco Santander, S.A. Banco Santander, S.A. Feller Rate, Fitch Chile Clasificadora de Riesgo Limitada Fitch Ratings, Moody´s and Standard & Poor´s (1) The Extraordinary Shareholders Meeting held on December 18, 2015 agreed the change of the company name to Enersis Américas S.A., effective on March 1, 2016. (2) On November 30, the Management Council of Spanish Stock Exchanges and Markets, Negociation Systems, S.A., in excercising its powers granted by Latibex Regulations (Mercado de Valores Latinoamericanos), and attending the request performed by Enersis S.A., agreed the suspension of the contracting shares of Enersis S.A. after December 1 2015 and excluded from Latibex the trading of the shares issued by such Company, effective from December 4, 2015. The latter means that from such date Enersis S.A. was deslisted from Latibex and its shares won’t trade thereafter at the aforementioned stock exchange. Company Identification and Governing Documents 23  Constituent Documents The company that gave rise to Enersis S.A. was formed initially under the name Compañía Chilena Metropolitana de Distribucion Electrica S.A. by public deed dated June 19, 1981, granted by the notary Patricio Zaldívar Mackenna in Santiago, and modified by public deed on July 13 the same year and in the same notary. The company’s incorporation was authorized and its bylaws approved by Resolution 409-S of July 17, 1981 of the Securities and Insurance Commission (SVS). The extract of the incorporation authorization and approval of the bylaws was registered in the Santiago Trade Registry on page 13,099 Nº7,269 for the year 1981, and were published in the Official Gazette of July 23, 1981. The bylaws of Enersis have undergone a number of modifications ever since. On August 1, 1988, the company’s name was changed to Enersis S.A. The Extraordinary Shareholders Meeting held on December 18, 2015 agreed to divide the Company into two entities, thus a new open stock company “Enersis Chile S.A.”, governed by Title XII of D.L. 3500. This Extraordinary Shareholders Meeting approved, among other matters, the capital decrease of Enersis S.A. as consequence of the division, and the distribution of the social capital of the divided company and the recently created; moreover, among other statutory modifications, the company name changed “Enersis Américas S.A.” and the company purpose. This modification is recorded in public deed on January 8, 2016, granted by the Notary Iván Torrealba Acevedo, in Santiago, whose excerpt was registered in the Commercial Registry of the Property Register, pages 4013, N°2441 of the Commerce Registry of 2016 and published in the Oficial Journal on February 10, 2016. 24 2015 Annual Report Enersis  Corporate Purpose According to the statutory modification approved by the In complying with its main objects, the company will carry Extraordinary Shareholders Meeting held on December out the following functions: a) promote, organize, build, 18, 2015, formalized in a public deed of January 8, 2016, modify, dissolve or liquidate companies of any nature granted in the Notary Iván Torrealba Acevedo in Santiago, which have similar corporate objects to its own; b) propose whose excerpt was registered on pages 4013 N° 2441 of investment, financing and business policies to subsidiary the Commerce Registry in 2016 of the Property Register companies, as well as accounting criteria and systems that in Santiago and was published in the Official Journal on these should follow; c) supervise subsidiary management: January 22, 2016. A supplementary extract was registered d) provide subsidiary or associate companies with the on pages 10.743 N° 6.073 in the same Registry, year and the necessary financing for their business development and Property Register and was published in the Official Journal provide management services; financial, technical, legal on February 10, 2016. and auditing advice; and in general any type of service that The Company’s purpose is to perform in the country or abroad the exploration, development, operation, In addition to its main objects and always acting within the generation, distribution, transmission, transformation limits established by the Investment and Financing Policy and/ or sales of energy in any of its forms and nature, or approved by the Shareholders Meeting, the Company may appears necessary for their best performance. directly or through intermediate companies, likewise, and invest in: also telecommunications activities and the provision of engineering consultancy within the country and abroad. It First. The acquisition, operation, construction, rental, may also invest and manage its subsidiaries and associate administration, intermediation, trading and disposal of all companies, whether generators, transmitters, distributors kinds of movable and immovable assets, either directly or or traders of electricity or whose business is any of the through subsidiaries or associate companies; ii) all kinds of following: (i) energy, in any of its forms or nature, (ii) the financial assets, including shares, bonds and debentures, supply of public utilities or whose main raw material is commercial paper and in general all kinds of titles or energy, (iii) telecommunications and information technology, securities and company contributions, either directly or and (iv) trading over internet. through subsidiaries or affiliate companies. Company Identification and Governing Documents 25 Ownership and Control Ownership and Control 27 28 2015 Annual Report Enersis  Ownership Structure The company capital is divided into 49,092,772,762 shares, with no par value and holds the same single series. As of December 31, 2015, all shares were subscribed and paid-in, and were distributed as follows: Shareholder Enel Latinoamérica S.A. Enel Iberoamérica S.R.L. Pension Funds ADR´S (Citibank N.A. according to circular N°1.375 of the SVS) Foreign Investment Funds Banco de Chile on behalf of third parties Stock brokers, insurance companies, mutual funds Other shareholders Total Shares Identification of Controllers Number of shares 19,794,583,473 9,967,630,058 5,873,538,625 4,984,301,300 2,728,916,139 2,499,152,073 2,260,114,335 984,536,759 49,092,772,762 Participation 40.32% 20.30% 11.96% 10.15% 5.56% 5.09% 4.60% 2.01% 100.00% As defined in Title XV of Law No. 18,045, Enersis S.A. is controlled by Enel S.p.A., Italian company, through the Spanish company Enel Iberoamérica S.R.L, formerly named Enel Energy Europe S.R.L., with 20.3% of shares issued by Enersis, and through Endesa Latinoamérica S.A., currently named Enel Latinoamérica S.A., also Spanish, with 40.32% of shares issued by Enersis S.A. Enel S.p.A controls 100% of Enel Iberoamérica S.R.L. and the latter, 100% of Enel Latinoamérica S.A. Enel S.p.A’s Shareholders as of December 31st, 2015 Ministero dell’Economia e delle Finanze de Italia Institutional Investors Other Shareholders Total Source: https://www.enel.com/en-gb/investors/shareholders The controller’s members do not have a joint action agreement. 25.5% 50.4% 24.1% 100.0% Ownership and Control 29  List of the Twelve Main Shareholders of the Company As at December 31st, 2015, Enersis was owned by 6,851 shareholders. The twelve main shareholders were: Name or Company Name Enel Latinoamérica S.A. Enel Iberoamérica S.R.L. Citibank N.A. As per S.V.S. Circular 1,375 Banco de Chile on behalf of non-resident third parties Banco Itaú on behalf of foreign investors Banco Santander on behalf of foreign investors AFP Provida S.A. for C pension fund AFP Habitat S A for C pension fund AFP Capital S A for C pension fund AFP Cuprum S A for C pension fund AFP Provida S.A. for B pension fund AFP Habitat S A for B pension fund Subtotal 12 shareholders Other 6,839 shareholders TOTAL 6,851 SHAREHOLDERS Tax ID Number of Shares Shareholding 59,072,610-9 59,206,250-K 59,135,290-3 97,004,000-5 76,645,030-K 97,036,000-K 76,265,736-8 98,000,100-8 98,000,000-1 98,001,000-7 76,265,736-8 98,000,100-8 19,794,583,473 9,967,630,058 4,984,301,300 2,499,152,073 1,407,046,008 1,195,688,888 1,013,706,040 843,387,408 623,729,773 594,400,465 346,537,072 340,179,565 40.32% 20.30% 10.15% 5.09% 2.87% 2.44% 2.06% 1.72% 1.27% 1.21% 0.71% 0.69% 43,610,342,123 5,482,430,639 88.83% 11.17% 49,092,772,762 100.00% Most Significant Ownership Modifications During 2015, the most significant modifications in Enersis’s ownership were: Name or company name Citibank N.A. As per S.V.S. Circular 1,375 Banco de Chile on behalf of non-resident third parties AFP Provida S. A. AFP Habitat S. A. Banco Itaú on behalf of investors Banco Santander on behalf of foreign investors AFP Cuprum S. A. AFP Capital S. A. Banchile C de B S A Santiago Stock Exchange BCI C De B S A BTG Pactual Chile S A C de B Tax ID Dv N° Shares on 12/31/2014 N° Shares on 12/31/2015 Variation % Variation in number of shares 59,135,290 97,004,000 98,000,400 98,000,100 76,645,030 97,036,000 98,001,000 98,000,000 96,571,220 90,249,000 96,519,800 84,177,300 3 5 7 8 K K 7 1 8 0 8 4 5,132,288,300 4,984,301,300 -0.3014% -147,987,000 2,137,510,595 2,499,152,073 1,749,539,615 1,740,805,548 1,566,165,413 1,541,930,759 0.7366% -0.0178% -0.0494% 361,641,478 -8,734,067 -24,234,654 1,425,764,571 1,407,046,008 -0.0381% -18,718,563 1,062,573,078 1,195,688,888 1,248,155,085 1,166,861,779 1,364,179,175 1,119,381,465 288,568,335 314,569,242 365,148,945 279,310,448 62,530,379 177,106,470 204,370,075 134,297,632 0.2712% -0.1656% -0.4986% 0.0530% -0.1748% 0.2334% -0.1427% 133,115,810 -81,293,306 -244,797,710 26,000,907 -85,838,497 114,576,091 -70,072,443 30 2015 Annual Report Enersis  Exchange Transactions Performed by Related Individuals during 2014 and 2015 Shareholder RUT Buyer/ Seller Transaction date Number of shares traded Price per share traded (Pesos) Total amount traded (Pesos) Marcos Cruz Sanhueza 10,702,983-4 Seller 01/03/2014 1,371,369 158.00 216,676,302 Marcos Cruz Sanhueza 10,702,983-4 Buyer 01/03/2014 1,371,369 162.08 222,266,002 Marcos Cruz Sanhueza 10,702,983-5 Seller 06/30/2014 1,197,000 186.50 223,240,800 Endesa S.A. 59,066,580-0 Seller 10/23/2014 9,967,630,058 208.66 2,079,906,470,758 Enel Energy Europe S.R.L. 59,206,250-K Buyer 10/23/2014 9,967,630,058 208.66 2,079,906,470,758 Marcos Cruz Sanhueza 10,702,983-7 Seller 28/11/2014 510,000 201.26 102,645,000 Francisco Fernández Morandé 7,006,374-3 Buyer 11/09/2015 2,796 178.78 499,869 Purpose of the transaction Financial Investment Financial Investment Financial Investment Financial Investment Financial Investment Financial Investment Financial Investment Relation with the Company Tax Advisor Tax Advisor Tax Advisor Controller Controller Tax Advisor Related to Director Summary of Directors’ Committee and Shareholders Comments and Proposals Enersis received neither comments nor proposals with regards to the progress of company business between January 1st and December 31st, 2015 from the Directors’ Committee or Shareholders who own or represent 10% or more of the shares issued with voting rights as stated in Articles 74 of Law No. 18,046 and 136 of the Regulation to Public Companies. Ownership and Control 31 Administration Administration 33 34 2015 Annual Report Enersis  Board of Directors 1 2 5 3 6 4 7 1. CHAIRMAN Francisco de Borja Acha Besga Attorney at Law Universidad Complutense de Madrid DNI: 05-263174-S From 06.30.2015 2. VICE CHAIRMAN Francesco Starace Nuclear Engineer Universidad Politécnica de Milán Passport: YA5358349 From 04.28.2015 3. DIRECTOR Francesca Di Carlo Degree in Economics University: La Sapienza, Roma Passport: AA2224406 From 04.28.2015 4. DIRECTOR Alberto De Paoli Degree in Economics Universidad de Roma La Sapienza Passport: YA 4226864 Last appointment 04.28.2015 Ownership and Control 5. DIRECTOR Hernán Somerville Senn Lawyer Universidad de Chile Master of Comparative Jurisprudence Universidad de NewYork Rut: 4,132,185-7 Last appointment 04.28.2015 6. DIRECTOR Rafael Fernández Morandé Industrial Civil Engineer Pontificia Universidad Católica de Chile Rut: 6,429,250-1 Last appointment: 04.28.2015 7. DIRECTOR Herman Chadwick Piñera Lawyer Universidad Católica Rut: 4,975,992-4 From 06.30.2015 SECRETARY OF THE BOARD OF DIRECTORS Domingo Valdés Prieto Lawyer Universidad de Chile Master of Laws Universidad de Chicago Rut: 6,973,465-0 From 04.30.1999 35 Enersis is managed by a Board of Directors comprised by seven members, who remain in office for a three-year period and maybe re-elected. The Board was appointed at the Ordinary Shareholders’ Meeting held on April 28, 2015. According to the Corporations Law, if a Director’s vacancy occurs, the whole board shall be renewed at the next ordinary shareholders’ meeting the corporation shall hold, and, in the meanwhile, the board may name a substitute. The Company doesn’t consider any substitute members. In the last two years, the following were also Directors of Enersis: Jorge Rosenblut Chairman Industrial Civil Engineer Universidad de Chile Carolina Schmidt Zaldívar Business Engineer Universidad Católica de Chile Rut: 7,052,890-8 MPA at Kennedy School of Government at Harvard University Last appointment 04.28.2015 Rut: 6,243,657-3 Last appointment: 04.28.2015 Resignation: 06.30.2015 Pablo Yrarrázaval Valdés Chairman Resignation 06.26.2015 Luigi Ferraris Degree in Economics and Commerce Universidad de Génova Passport: YA2600789 Former Chairman of the Santiago Stock Exchange From 04.16.2013 Resignation 11.04.2014 Leonidas Vial Echeverría Businessman Former Vice Chairman of Santiago Stock Exchange Rut: 5,719,922-9 Last appointment: 04.16.2013 Resignation 10.30.2014 Rut: 5,710,967-K Last appointment: 04.16.2013 Resignation 10.28.2014 Borja Prado Eulate Vice Chairman Former Chairman of (Spain) Law studies Universidad Autónoma de Madrid DNI: 05-263174-S From 04.16.2013 Last period as Director ended on 04.28.2015 Andrea Brentan Mechanical Engineer Politécnico di Milano Master in Applied Sciences New York University Passport: YA0688158 Last Appointment 16.04.2013 Last period ended on 04.28.2015 36 2015 Annual Report Enersis  Board of Directors’ and Directors’ Committee Compensations Pursuant to Article 33 of Law No. 18,046 Corporations Law, the Ordinary Shareholders’ Meeting held on April 28, 2015 approved the compensations for the Board of Directors and Directors’ Committee for the 2015 accounting period. The compensations for the Directors’ Committee consists on an annual variable remuneration equal to zero point eleven thousand seven-hundred and sixty-five per thousand of the net profits of the period. It was determined to pay in advance one-month fee, one part in all events and a variable part, attributable to the referred variable annual remuneration. Administration 37 Total compensation expenses in 2015 were o$564,993,635, which is detailed in the following table. The Board of Directors did not incur in expenses for external consulting services. 2015 Figures in Ch$ Position Name Acha Besga Borja (1) Chairman Chairman Rosenblut Jorge Chairman Yrarrazaval Pablo Starace Francesco (1) Vice Chairman Director Prado Eulate Borja Director Brentan Andrea Director Vial Echeverría Leonidas De Paoli Alberto (1) Director Fernández Morandé Rafael Director Director Schmidt Zaldívar Carolina Director Somerville Senn Hernán Di Carlo Francesca (1) Director Chadwick Piñera Herman Director Total general Fixed Remuneration Ordinary and Extraordinary Sessions Committee Fixed Compensation Committee Ordinary and Extraordinary Sessions 37,873,751 35,951,085 14,934,046 9,956,031 12,192,881 9,759,798 Variable Compensation TOTAL 2015 4,036,727 20,183,636 77,861,563 20,183,636 18,165,273 3,027,545 14,784,561 45,292,200 22,743,375 14,784,561 47,112,130 15,186,844 47,112,130 38,080,805 16,326,667 36,390,861 15,326,923 4,692,396 15,326,923 15,955,804 3,113,832 15,955,804 17,741,473 2,956,913 17,741,473 134,217,135 42,276,652 132,527,191 31,925,286 204,100,218 21,754,139 170,456,236 9,135,550 44,481,792 12,292,348 47,317,788 98,637,601 75,107,322 564,993,635 (1) Messrs. Borja Acha, Francesco Starace, Alberto de Paoli and Francesca di Carlo, renounced to any compensation payment due to their current positions in the senior management of the Enel Group. 2014 Position Chairman Vice Chairman Figures in Ch$ Name Rosenblut Jorge (2) Prado Eulate Borja Schmidt Zaldívar Carolina (2) Director Somerville Senn Hernán Director Fernández Morandé Rafael Director De Paoli Alberto (2)(3) Director Brentan Andrea (3)(4) Director Yrarrázaval Valdés Pablo (1) Chairman Vial Echeverría Leonidas (1) Director Fixed Remuneration 9,274,634 43,661,309 4,968,083 29,107,539 29,107,539 - 6,871,759 48,278,913 24,139,457 Ordinary and Extraordinary Sessions 16,139,685 42,763,247 8,069,842 33,279,443 31,670,974 - 12,865,954 50,419,200 23,618,980 Committee Fixed Compensation - - 1,869,180 10,951,351 10,951,351 - - - 9,082,172 Committee Ordinary and Extraordinary Sessions - - 1,323,082 7,779,963 7,779,963 - - - 5,154,136 Ferraris Luigi (1)(3) Miranda Rafael (1) Tironi Eugenio (1) Total general Director Director Director - - - - - - 195,409,233 - - 218,827,325 - - 32,854,054 - - 22,037,145 Variable Compensation - 25,600,435 - 33,644,061 33,644,061 - - 48,189,053 33,644,061 - 7,027,570 7,027,570 188,776,811 TOTAL 2014 25,414,319 112,024,991 16,230,188 114,762,358 113,153,889 - 19,737,713 146,887,167 95,638,805 - 7,027,570 7,027,570 657,904,568 (1) Messrs. Rafael Miranda and Eugenio Tironi, held their position in the Board of Directors until April 2013, nevertheless they received payments in 2014 for the difference between the annual variable remuneration coming from net income of the period 2013 versus advanced monthly payments that same year. Messrs. Pablo Yrarrázaval and Leonidas Vial held their positions in the Board of Directors until October 28 and 30, 2014 respectively and Mr. Luigi Ferraris until November 4, 2014. (2) Messrs. Jorge Rosenblut, Carolina Schmidt and Alberto de Paoli, assumed their positions in the Board of Directors of Enersis on November, 2014. (3) Messrs. Luigi Ferraris, Andrea Brentan and Alberto de Paoli, renounced to any compensation payment due to their current positions in the senior management of the Enel Group. (4) Mr. Brentan resigned its position as Managing Director (Consejero Delegado) of Endesa, whereby he begins to accrue remuneration as director since October 38 2015 Annual Report Enersis  Social Responsibility and Sustainable Development Board Diversity Number of people by gender: Female Male General Total Number of people by nationality: Chilean Spanish Italian General Total Administration 1 6 7 3 1 3 7 Number of people by age range: Between 41 and 50 years old Between 51 and 60 years old Between 61 and 70 years old Over 70 years old General Total Number of people by seniority: Less than 3 years More than 12 years General Total 2 3 1 1 7 6 1 7 39  Board of Directors Consulting Expenses During 2015, the Board of Directors did not make any expenses in consulting services. Property over Enersis As at December 31, 2015, according to the Shareholders’ Register, none of the current Directors had ownership on the company. Director’s Committee Pursuant to Article 50 bis of law No. 18,046 Corporations Law, Enersis has a Directors’ Committee composed of three members, with faculties and duties enumerated in said article and those delegated by the Board as established in the Regulation of the Director’s Committee. In session held on April 28, 2015, the Board of Directors appointed Messrs. Hernán Somerville Senn, Carolina Schmidt Zaldívar and Rafael Fernández Morandé as independent members of the Directors Committee. Also in this session, Mr. Hernán Somerville Senn was appointed Fiancial Expert. In the Directors’ Committee session held on April 28, 2015 as members of the Directors Committee Mr. Hernán Somerville Senn was appointed Chairman of the committee. Likewise, as of June 26, 2015, Mrs. Schmidt Zaldívar presented her resignation to the position of Director and member of the Directors’ Committee, as become known by the Directors’ Committee in session of June 30, 2015. In her replacement as Director and member of the Directors’ Committee, was appointed Mr. Herman Chadwick Piñera, independient, following the decision taken on the Board of Directors Meeting held on June 30, 2015. Worth is to highlight that in session held on April 16, 2013, the Company’s Board of Directors appointed Messrs. Hernán Somerville Senn (independent), Rafael Fernández Morandé (independent) and Leonidas Vial Echeverría (independent) as members of the Directors’ Committee of Enersis. They are the same Directors who were appointed at the Board meeting on April 23, 2010, and who were part of the Directors’ Committee on January 1, 2013. Likewise, the Directors’ Committee in session held on April 29, 2013 appointed Mr. Hernán Somerville Senn as Chairman and Mr. Domingo Valdés Prieto as Sectretary. Also in this session, the board of Directors appointed Mr. Hernán Somerville Senn as Financial Expert. On October 30th, 2014 Leonidas Vial Echeverría resigned to his position as Director and member of the Directors’ Committee. On November 4th, 2014 the Board appointed Mrs. Carolina Schmidt Zaldívar as his substitute, who assumed the position as Independent Director and member of the Directors’ Committee as of this date. 40 2015 Annual Report Enersis  Annual Management Report Background The Directors’ Committee President, Mr. Hernán The resignment of the Director Mrs. María Carolina Somerville Senn stated that pursuant to the Article 50 Schmidt on June 26, 2015 was taken into account by bis of Law No. 18.046, the Chilean Corporatins Law the Directors’ Committee on session held on June 30, (LSA), the Directors’ Committee of Enersis S.A. has to 2015, and in her replacement as Director and member introduce in the annual report and give account of the of the Directors’ Committee was appointed Mr. Herman Company’s Ordinary Shareholders’ Meeting regarding Chadwick Piñera, independient, as agreed by the Board the annual management report, thus highlighting the of Directors on June 30, junio de 2015. activities developed by the Committee in 2015, as well as expenses incurred, including those of its advisors, during such period. For this purpose, it was proposed to the Committee the approval of the Annual Management Report, Activities and Expenses of the Directors’ Committee: Annual Management Report of the Directors’ Committee The Directors’ Committee held thirty meetings in 2015, Worth is to highlight that after this extraordinary session incluiding the aforementioned session held on December of the Directors’ Committee, a new extraordinary session 17, 2015. was held as of December 17, 2015, included in this report, pursuant to the agreements achieved by the Directors’ 1.- ORDINARY SESSION HELD ON JANUARY 29, Committee while approving the Annual Management 2015: Certain adjustments were discussed previously Report, Activities and Expenses, with regards to the to reviewing the financial statements, as follows (i) additional sessions to be held in 2015. Hidroaysén Project, unanimously agreed the review of the adjustments regarding the impairment provisions As of January 1, 2015, the Directors’ Committee of of Endesa Chile on its participation in Hidroaysén, Enersis was comprised by Mr. Hernán Somerville Senn regading Endesa Chile’s investment value on the (independient), Mrs. María Carolina Schmidt Zaldívar stake in Hidroaysén, recorded in 2014 and their effects (independient) and Mr. Rafael Fernández Morandé on the Financial Statements’ draft. Likewise, the (independient). In the positions of Chairman and Financial Directors’ Committee agreed to highlight de defense Expert was appointed Mr. Hernán Somerville Senn and of water rights for the development of energy projects; Mr. Domingo Valdés Prieto held the position of Secretary (ii) Punta Alcalde Project, with respect of which of the Directors’ Committee. the Directors’ Committee, unanimously, requested the presentation of an analysis of the technologic In session of April 28, 2015 the Board of Directors update of the investment projects, and declared as appointed as members of the Directors’ Committee reviewed the adjustments made by the suspension to Messrs. Hernán Somerville Senn, Carolina Schmidt of the development of Punta Alcalde project by Zaldívar and Rafael Fernández Morandé, all of them the subsidiary Endesa Chile and the associated are independient. Also in this session, Mr. Hernán transmission project Punta Alcalde-Maitencillo and for Somerville Senn was appointed financial expert. the provision of 100% of the investment value in Punta In session of the Directors’ Committee held on April Alcalde accounted in 2014, as well as their effects on 28, 2015 Mr. Hernán Somerville Senn was appointed the Financial Statements’ draft previously distributed; Chairman. (iii) settlement agreement with Tecnimont, in respect Administration 41 of which the Directors’ Committee, by unanimity of its the evolution and the terms required to properly members, agreed to empower the Executive Officer, comply with the timely delivery of the Financial Mr. Luca D’Agnese, the Deputy Executive Officer Mr. Statements by the end of the year. Daniel Fernández Kóprich, the Administration, Finance and Control Officer, Mr. Francisco Javier Galán and the By unanimity of its members, the Directors’ Planning and Control Officer Mr. Marcos Fadda, so that, Committee agreed to take notes of Mr. Rahil’s each of them individually, may propose the corporate presentation, partner of Ernst & Young, and to declare operations corresponding to the subsidiary Endesa that the matters referred in the NCG 341 of the SVS Chile, the approval of the Bases for Agreeement, as were reviewed and will be analyzed biannually with well as the celebration and subscription of the final the External Auditors. agreements between the parties to the arbitration in order to terminate the arbitral lawsuit mentioned The services to be provided by external auditors were above. analyzed, those services different from external audit and non-recurring; and its was unanimously agreed that they Then, the Directors’ Committee agreed unanimously not compromise neither the technical suitability nor the to leave a written record of the formal and explicit independence of judgement of the respective external acknowledgement of the Money Brokerage and Money audit companies. Order Report prepared by the External Auditors of Enersis S.A., Ernst & Young as of January 29, 2015. Likewise, The Directors’ Committee agreed, by unanimity of agreed the formal and explicit acknowledgement of the its memebers to declare as examined the operation Internal Control Letter of Enersis S.A., dated January 29, related to the contract subscription of the mandate for 2015, prepared by the aforementioned external auditors reimbursement of expenses beteween Enersis S.A. and of the Company. the following companies: Enel S.p.A., Enel Servizi S.R.L., Enel Green Power, Enel Produzione S.p.A., Enel Italia The Directors’ Committee examined the Consolidated S.R.L., Enel Iberoamérica S.R.L., Endesa Latinoamérica, Financial Statements of Enersis S.A. as of December S.A., Endesa S.A., Codensa S.A. ESP, Emgesa S.A. ESP, 31, 2014 and the External Auditors’ and Accounts Enel Brasil S.A., Ampla Energía and Servicios S.A., Edegel Inspectors’ Reports, where the Director Rafael S.A.A., Edelnor S.A.A., and those other people related Fernández Morandé asked if Ernst & Young have with the expatriate staff, all of the above in the terms reviewed all the notes and contents of the Financial exposed in session, and then issuing the corresponding Statements, whereof Mr. Emir Rahil answered report. positively. The Chairman of the Directors’ Committee, Mr. Hernán Somerville Senn, stated that he expected 2.- ORDINARY SESSION HELD ON FEBRUARY 26, 2015: a complete audit for the next opportunity where the The Chairman of the Directors’ Committee, Mr. Hernán Internal Control Report revealed the weaknesses. The Somerville Senn, welcome the new Executive Officer Directors’ Committee, by unanimity of its members, Mr. Luca D’Agnese. agreed to declare the the Consolidated Financial Statements of the Company as of December 31, 2014, Afterwards, unanimously, the Committee issued its its Notes, Income Statement and Relevant Events opinion regarding each of the complaints received have been reviewed, as well as the External Auditors through the Ethic Channel. opinions was issued “without any observation” as of January 29, 2015, signed by Mr. Emir Rahil, partner Then, the Directors’ Committee agreed, unanimously, of Ernst & Young and the opinion of the Accounts to qualify as reasonable the work pursued by the Inspectors, signed by Messrs. Luis Bone Solano and external auditors of the Company, EY (Ernst & Young), Waldo Gómez Santiago, as of January 29, 2015. The performed during the period 2014. Directors’ Committee also agreed to request a specific audit for the weaknesses mentioned in the Internal It was agreed, unanimously, to approve the payments Control Letter and to request the Administration, to external auditors that provided services to the Finance and Control, a presentation in July regarding Enersis Group in the period 2014. 42 2015 Annual Report Enersis  Unanimously, it was agreed to porpose to the Board exposed and inform the results of such investigation in of Directors that itin turn suggests to the Ordinary a forthcoming session of the Directors’ Committee. Shareholders’ Meeting the appointment of Feller Rate Clasificadora de Riesgo Limitada and Fitch Chile 4.- ORDINARY SESSION HELD ON APRIL 27, 2015: The Clasificadora de Riesgo Limitada as the local private Directors’ Committee, unanimously, took account of credit rating agencies, and Fitch Ratings, Moody’s the situation presented by its Chairman Mr. Hernán Investors Services and Standard & Poor’s International Somerville Senn, with regards to the audit verified by the Ratings Services as the international private PCAOB to the external audit of the subsidiary Endesa credit rating agencies of Enersis S.A. for the period Chile, KPMG. Likewise, the Directors’ Committee 2015. decided to file a copy of Ernst & Young’s opinion, which certified that the observations of PCAOB to KPMG The services to be provided by external auditors were didn’t impact the financial statements of Enersis S.A. analyzed, those services different from external audit and non-recurring; and its was unanimously declared The Chairman of the Directors’ Committee, Mr. that they not compromise neither the technical Hernán Somerville Senn, informed the members of suitability nor the independence of judgement of the the Board that on April 8, 2015 a videoconference respective external audit companies. meeting was held with the Collegio Sindacale di Enel S.p.A., with the participation of the Chairman 3.- ORDINARY SESSION HELD ON MARCH 31, 2015: of the Directors’ Committee and the Administration, The Directors’ Committee agreed, unanimously, to Finance and Control Officer, Mr. Javier Galán Allué, approve the Directors’ Committee Budget proposal the Internal Audit Officer, Mr. Alain Rosolino and the for the period 2015, consisting on 10,000 Unidades Legal Councel of the Company, Mr. Domingo Valdés de Fomento for expenses and the operation of the Prieto. The Director Rafael Fernández Morandé asked Directors’ Committee and its advisors, which will be if the information delivered to the Collegio Sindacale proposed at the Ordinary Shareholders’ Meeting of assumed any formality, to which the Chairman of the Enersis S.A. in 2015, which will make a final decision Directors’ Committee answered that it corresponds on this matter. to the information included in the annual report of the Company. The Director Carolina Schmidt Zaldívar The Directors’ Committee, unanimously, took account highlighted the importance that the subsidiary Endesa of the situation presented by its Chairman, Mr. Hernán Chile would have been able to clarify the situation Somerville Senn, with regards to the audit verified by the with KPMG and that the Chairman of the Directors’ PCAOB to the external audit of the subsidiary Endesa Committee would have obtained a letter from Ernst Chile, KPMG. Likewise, the Committee requested to & Young with regards to this situation, and that the its Chairman to inform on the next opportunity about latter confirmed that there won’t be any impact on the the outcome of the meeting held by Endesa Chile with financial statements of Enersis S.A. KPMG and the report issued by Ernst & Young and the note sent to Enel S.p.A. Unanimously, the Committee agreed to approve the It was agreed, unanimously, to suggest the Board of were reviewed under IFRS, thus incorporated in Directrors to propose to the Ordinary Shareholders’ such document, and authorize its presentation to the Meeting the following order of precedence for the Securities and Exchange Commission of the United Form 20-F, declared that the financial statements appointment of the external audit company of Enersis States of America (SEC). S.A. for 2015: 1° E&Y; 2° RSM; 3° PKF y 4° KPMG. Unanimously, informed that the Consolidated Financial As requested by the Director Rafael Fernández Statements as of March 31, 2015 of Enersis S.A. were Morandé, the Directors’ Committee, unanimously, reviewed, its Notes, Income Statement and Relevant agreed to mandate the Internal Audit Officer, Mr. Alain Events, as well as the special opinion issued by E&Y Rosolino, to investigate if Enersis S.A. has received with regards to the note related to balances and invoices, bills or services from individuals politically transactions with related parties. Administration 43 The Directors’ Committee disposed, unanimously, external auditors, providing detail on the ones related that the recruitment of a former employee of KPMG to the corporate restructuring operation under study, is a subsidiary of the Company, which was already denominated Carter II, and explaining that every explained, doesn’t involve any violation neither to participating companies have to be audited and to Sarbanes Oxley Act nor to the local legislation, elaborate the financial statements in a short period therefore there is no legal obstacle to proceed with of time. The Director Fernández Morandé exposed the recruitment. Likewise, the Directors’ Committee that this decision might be taken further on taking decided that such recruitment doesn’t affect the into consideration if the Board of Directors that this independence of the external audit company. restructuring operation has merits. The Chairman of the Directors’ Committee proposed that this subject The Directors’ Committee, by unanimity of its members, has to be discussed in the next Board of Directors’ agreed on the review of the related parties operations session, and suggested that at that moment it consisting on the restructuring an intercompany loan proceeds with 10% of the total amount and in a granted by Enersis S.A. to its subsidiary Endesa Chile, reasonable period to be determined by the Board of in the terms exposed by the Administration, Finance and Directors, the Administration, Finance and Control Control Officer and the issuance of its respective report. Officer will present again this subject to the Board of Directors of the Company. The Directors’ Committee, 5.- EXTRAORDINARY SESSION HELD ON APRIL 28, agreed, by the mayority of its members and with the 2015: The Directors’ Committee, by the mayority of abstention of the Director Rafael Fernández Morandé, its members and the dissenting vote of the Director declare the contracting aforementioned external audit Mr. Rafael Fernández Morandé, appointed Mr. Hernán services don’t compromise neither the technical Somerville Senn as Chairman of the Directors’ suitability nor the independence of judgement of Committee and, by unanimity of its members, the respective external audit company. Likewise, the appointed Mr. Domingo Valdés Prieto as Secretary of Directors’ Committee agreed to submit to the Board of such Committee. Directors the degree of progress of these services so this corporate body will solve its procurement. 6.- ORDINARY SESSION HELD ON MAY 25, 2015: The Directors’ Committee, agreed, by the mayority of The Directors’ Committee, agreed, unanimously, to its members and the dissenting vote of the Director recommend the Board of Directors of Enersis to grant Mr. Fernández Morandé, who declared its rejection its consent, in the terms requested by Ernst & Young regarding the sale of any of these projects, and also and subject to compliance with the requirements stated that this seems of special concern because indicated pursuant to the Resolution N° 3048 of the there wasn’t any initiative for the use of funds in Superintendency of Securities and Insurance on April the last months, and previous inquiries made by the 13, 2004, and conditioned to the previous written Directors Hernán Somerville and Carolina Schmidt, consent of the subsidiary Empresa de Distribución the appointment of the investment bank BBVA to Eléctrica de Lima Norte S.A.A., so Ernst & Young will be contracted by the subsidiary Generalima for the be enabled to fulfill therequirements of the Public valorization of the Yacila Project Assets, in Peru, being Company Accounting Oversight Board (PCAOB). the purpose of one of the offers received from EGP. The Director Hernán Somerville Senn expressed that, Unanimously, it was agreed to declare that the contract due the reasons indicated in the last Board of Directors’ or commitment letter to be subscribed between session held on May 19, 2015, he agreed to appoint an Enersis S.A. and the External Auditors Ernst & Young investment bank, but its favorable vote was conditioned was reviewed and approved. to the discussion the strategic issue regarding non- conventional renewable assets in a forthcoming Board The Chairman of the Directors’ Committee, Mr. Hernán of Directors’ session. Somerville Senn, explained that it was requested that the Directors’ Committee should discuss the The Administration, Finance and Control Officer restructuring of the Group, and observed that they explained the need to contract the services of will count with more information for next week, so an 44 2015 Annual Report Enersis extraordinary session will be convened, and will invite a debt and cash allocation, and that the conversations to present for these effects the financial and legal regarding the merger were considered as something advisors that are performing this operation. The Director disconnected from an operation between related Fernández Morandé mentioned that he considers that parties. the operation under study is an indivisible operation between related companies, so it involves conflict of 7.- EXTRAORDINARY SESSION ON MAY 29, 2015: The interes, therefore it’s obvious that the decisions to be legal firm Philippi, Prietocarrizosa & Uría, preformed adopted in the board of directors, in the board of the a presentation regarding the state of progress of the parent company and in the ones of the other related legal “due diligence” related to this operation. The firm companies, should reconcile the social interest of exposed the structure of the operation, to which the them all, without damaging the legitimate interest of Director Fernández Morandé asked what would happen the various minority shareholders concurrents to the if the division of the three Chilean companies takes place parent company and to its related subsidiaries and their and afterwards there would not be possible to proceed owns. The importance of this conflict of interest, in his with the merger of the three original companies. The opinion, requires enforcing the applicable law for these Director Rafael Fernández commented that without types of operations, reason why the organizational the merger this operation doen’t have any sense. The restructuring of the Enersis Group should be treated in legal firm Philippi Prietocarrizosa & Uría confirmed that the Directors’ Committee. there wouldn’t be any impediment in the contract to carry out the division. The Chairman of the Directors’ The Chairman of the Directors’ Committee mentioned Committee, Mr. Hernán Somerville Senn, said that that he didn’t have sufficient background to speak out the banks should analize which would be ratings and that this is a matter that was inquired promptly to of the Companies after the merger. The Director the Superintendency of Securitues and Insurances, Carolina Schmidt commented that the objective of and whose opinion will be consulted to the legal study the corporate reorganization is the simplification of Philippi, which has been engaged by the Board of the structure of the Group, and therefore the merger Directors of Enersis S.A. to provide advisory on this stage has to be reached, otherwise there will be more restructuring operation. companies than the present ones, which won’t make any sense. The Chairman of the Directors’ Committee The Director Fernández Morandé expressed that the asked the legal firm Philippi Prietocarrizosa & Uría if definition that this Directors’ Committee definition the restructuring operation under analysis means an on whether they are facing an operation with related operation between related parties, and the answer parties is a relevant input for the Superintendency of was that a final opinion has to be issued by the Securities and Insurances, then its urgent to issue an Superintendency of Securities and Insurances only. opinion. This has been the case of the capital increase, The Director Schmidt Zaldívar asked if it was different operation that the Superintendency of Securities and for these effects a division and a merger, or a division Insurance considered such arguments to reaffirm its whose ultimate purpose were a merger. The legal firm position. Philippi Prietocarrizosa & Uría answered that they see no difference because the steps taken are exactely The Director Carolina Schmidt asked the Legal Councel the same. The Director Fernández Morandé asked if if the Superintendency of Securities and Insurances only because the companies are Enersis, Endesa Chile have had a casuistry approximation in its latest rulings and Chilectra related companies, the operation under regarding operations with related parties, to which the study shouldn’t be treated as related, whereof the legal Legal Councel answered affirmatively. firm Philippi Prietocarrizosa & Uría answered that the Superintendency of Securities and Insurances applied The Director Fernández Morandé mentioned that he the legal principle of specificity of regulations over didn’t agree with the enquiry to the Superintendency of general regulations and have said that the merger is Securities and Insurances because the operation was regulated by a special title, and therefore prevails over divided in two parts, it wasn’t mentioned that there the regulation that regulates the operations between was a valuation of assets and a debt assignment and related parties. The Director Fernández Morandé pointed Administration 45 out that the Directors’ Committee has the obligation to N°25/2015, where the investment bank BBVA was speak out with regards to if this operation is or not appointed to perform the assets valuation of the Yacila related, to which the legal firm Philippi Prietocarrizosa Project in Peru, estimated that it wasn’t valid. He & Uría answered that that was not the case. The explained that because it was an operation between Director Fernández Morandé said that it’s an important related parties, the vote of the independent and not element for the Superintency to know the opinion of involved director was required, who was himself, and the Directors’ Committee of Enersis, to which the because he voted against the proposal, he considered legal firm Prietocarrizosa pointed out that when they that the appointment of the aforementioned banks previously visited the Superintendency of Securities was invalid. The Legal Councel of the Company and Insurances, they were’nt advised that the opinion explained that the qualification of non-valid of the neither the Directors’ Committee nor the Directors agreement was inappropriate and explained the were required. Nevertheless, the Company made the reasons. The Legal Councel concluded saying that decision to ask the Superintendency of Securities and this is evidenced because the Board of Directors, Insurances. Several questions regarding the operation acting with transparency and voluntarily, delegated performed followed by the Directors Rafael Fernández in the Directors’ Committee the appointment of Morandé and Carolina Schmidt, and also the Chairman the aforementioned investment bank with the only of the Directors’ Committee, regarding the different purpose of perfoming a valuation of the constituent stages of the operation, possible conflicts of interest, assets of the Yacila Project, which would be previous allocation of debt and cash, whether if its an operation history and a reference to determine whether to move between related parties, withdrawal rights and other forward with the operation. relevant matters regarding the operation. Aferwards, the financial advisors made their presentations, The Director Fernández Morandé commented the explaining the problems that the current structure review of the invoices and bills that the Directors’ of the Enersis Group presents, and highlighted the Committee requested to Internal Audit Management, benefits of the new structure under study. Then under act N°7 of May 29, 2015. Regarding this subject, followed the precisions requests and questions to the he suggested to add to the review all the Chilean members of the Committee. Then, the tax advisor, Mr. subsidiaries and fundations, affiliates of the Enersis Marcos Cruz, was invited to make his presentation; Group domicilied in the Republic of Chile, in a six- providing account of a preliminary analysis of the tax year horizon. The Directors’ Committee, unanimously, effects that the corporate reorganization may have as agreed to request to the Internal Audit Management proposed. to perform a review of all the Chilean affiliates and for a minimum period of six years in relation to irregular The Directors’ Committee adopted, unanimously, invoices and bills that might have been issued in the the resolution of requiring to the Internal Audit context of the Soquimich, Penta and Caval cases. Management to perform a review of every Chilean subsidiaries and fundations and for a period of non An analysis of the services delivered by external less than six years with regards to possible irregular auditors, different from external audit and non-recurring, invoices and bills that may have been issued in the was carried out. It was also agreed, unanimously, to context of the Soquimich, Penta and Caval cases. declare that it doesn’t compromise neither the technical suitability nor the independence of judgement of the 8.- ORDINARY SESSION HELD ON JUNE 30, 2015: The respective external audit companies. Chairman of the Directors’ Committee, Mr. Hernán Somerville Senn, informed the resignation of the As requested by the Chairman of the Directors’ Director Carolina Schmidt Zaldívar, also member of the Committee, to inform of the status of the criminal Board, presented on June 26, 2015. lawsuit against Directors and Executives of Enersis, The Director Rafael Fernández Morandé informed that pursuant to Law 19,884 regarding Transparency, Limit with regards to the Directors’ Committee Act N°6 and Control of Electoral Spending, the Legal Councel dated May 25, 2015, item II with respect to agreement of the Company informed regarding this matter. with regards to political donations approved in 2013 46 2015 Annual Report Enersis 9.- ORDINARY SESSION HELD ON JULY 27, 2015: Worth forward in the execution and expenses of an operation is to highlight that in the Board of Directors’ session that has not been approved. held on June 30, 2015, took note of the resignation of the Director Mrs. Carolina Schmidt Zaldívar. In her 10.- EXTRAORDINARY SESSION HELD ON AUGUST 5, 2015: replacement as Director and member of the Directors’ The Chairman Mr. Hernán Somerville Senn suggested Committee, was appointed Mr. Herman Chadwick that for the appointment of the advisory company for Piñera, independient, when the Bord extended a warm the corporate reorganization, has to be one of the three welcome and highlighted the valuable contribution that companies he mentioned. The Director Fernández its incorporation represents to the Board. Morandé expressed that he had two candidates. The Director Fernández Morandé asked the scope of the The Directors’ Committee, unanimously, and pursuant assignment, whereof the Chairman answered that he to article 50 bis N°1 of Lawy N°18.046 Corporations proposed to give the scope of independent evaluator. Law, stated to have reviewed the Consolidated The Directors Fernández Morandé and Chadwick Financial Statements of the Company as of June Piñera agreed with this proposal. The Director Rafael 30, 2015, its Notes, Income Statement and Relevant Fernández proposed an additional candidate for this Events, as well as the opinions of its External Auditors advisory. The Directors’ Committee agreed, by the issued “with no exceptions” as of July 27, 2015, signed unanimity of its members, to convene an extraordinart by Mr. Emir Rahil, partner of Ernst & Young. session of this entity, with the attendance of IM Trust, Claro y Asociados and Econsult, whose purpose is that By the unanimity of its members, the Board approved they provide services to the Directors’ Committee to the external audit plan and informed to have analized determine the advisor for the transaction and define the rest of the matters included in the presentation of the scope of the task. Mr. Rahil, partner of Ernst & Young, pursuant to NCG 341 of the SVS to be theated semi-annually with the Representantives from Bank of America Merrill Lynch External Auditors. made a presentation of the value analysis of the corporate restructuring under study. The Bank informed, The Directors’ Committee agreed, by the unanimity among other matters, that the transaction of simplifying of its members, to have examined the structure and the structure of Enersis S.A. has benefits, but no costs. proceedings of Self-assessment and Internal Audit Also they indicated that they don’t see that if the Review with regards to the Internal Control of Enersis. division and if the merger is performed correctly, it may Mr. Galán Allué, Administration, Finance and Control destroy share value. Officer, explained that in last May the Directors’ The members of the Committee communicated their Committee has preapproved the hiring of an audit observations, questions and concerns regarding costs, to the financial statements as of June 30, which benefits, cash and debt allocation and other relevant will contribute for the fist stage of the corporate matters of the operation. reorganization process and acknowlegdged that this operation has suffered some adjustments, so thos 11.- EXTRAORDINARY SESSION HELD ON AUGUST financial statements will not be needed, but the ones 11, 2015: Mr. Hernán Somerville Senn, said that it as of September 30, 2015. The Directors’ Committee may be required to invite, sequentially, each of the agreed, by the unanimity of its members, and the pre-selected advisors to decide which is the more abstention of the Director Rafael Fernández Morandé, competent to aid this Committee in the analysis that the hiring of the aforementioned external audit process and the issuance of a report related to the services, does not compromise neither the technical corporate reorganization operation and, as agreed suitability nor the independence of judgement of the upon the Board’s decision, its under study. Before respective external audit company auditoría externa. each presentation, the Directors members of the The Director Rafael Fernández Morandé said that Committee made the desirable precautions to the he rejected this hiring because it was a premature candidate with regards to the scope of the task and decision, and therefore its not recommended to move what is expected of them. The fees presented were: Administration 47 IM Trust: 25,000 UF; Ameris: 9,458 UF (equivalent to Morandé said he received two complaints, which he 350,000 dollars); and Econsult: 5,500 UF. brought to notice of the Directors’ Committee and the The Chairman of the Directors’ Committee requested Fernández Morandé observed that both complaints the Administration, Finance and Control Officer to were related with mistreatment of Executives of the perform a summary of the quotations received by each Company from an Executive of Enel, before which of these advisors invited to this extraordinary session. the other memebers of the Committee asked who he Internal Audit Officer, Mr. Alain Rosolino. The Director was and what position he held in the Company. The 12. - EXTRAORDINARY SESSION HELD ON AUGUST 13, Executive Officer, Mr. Luca D’Agnese, explained that his 2015: The Directors’ Committee appointed by the person is not an employee of the Company, but he had majority of its members and the dissenting vote of the interaction with the employees of the Company while Director Rafael Fernández Morandé, IM Trust as advisor working in the corporate restructuring project. The of the Directors’ Committee with regards to the specific Executive Officer added that these situations have been operation of reorganization of the Enersis Group, which reported opportunetely by the Administration, Finance is under study and its scope of work is equivalent to and Control Officer, whereby he have spoken with the an independient evaluator ruled by the Title XVI of the mentioned person. The Directors’ Committee, by the Corporations Law. Likewise, it was decided to request unanimity of its members, issued its opinion of each of the Executive Officer to issue a Relevant Event to the complaints filed. report the aforementioned appointment and the scope of the task. Worth is to note that, in the course of the Mrs. Paola Visintini Vacarezza, Human Resources and debate, Mr. Hernán Somerville Senn mentioned that he Organization Officer of Enersis S.A., presented the submitted for consideration and approval of the Directors’ remuneration systems and incentive plans of managers, Committee the appointment of IM Trust, knowing that senior executives and employees of the Company. The it means an important operation for the Company and Director Rafael Fernández Morandé asked Mrs. Visintini IM Trust is a very prestigious institution. On the other if the annual objectives are discussed and agreed with hand, he observed that a very valuable interaction the executives, to which the Human Resources and might take place with Bank of America Merrill Lynch, Organization Officer answered affirmatively. The Director so it’s required that the Committee dispose of advisors Rafael Fernández Morandé asked about the conventional of the same reputation and importance. Likewise, the compensation and its adjustment according to inflation. Director Herman Chadwick said he agreed with the He also insisted in the importance of recognizing the Chairman of the Directors’ Committee, and he added adjustment al least by inflation in the annual review of that this advisor has deep knowledge of Enersis Group. remunerations. The Directors’ Committee, unanimously, For its part, the Director Rafael Fernández pointed out declarared examined the remuneration systems and that he didn’t agree with the proposal and in his opinion compensations plans of managers, senior executives Econsult has similar track record than IM Trust, for this and employees of the Company. reason he didn’t see any point of assigning this contract to a firm four times more expensive as IM Trust. Due to The Directors’ Committee, agreed, unanimously, to the above, he proposed to hire Econsult. declare that the hiring of external audit services regarding the Revision and Certification of the information issued 13.- ORDINARY SESSION HELD ON AUGUST 28, 2015: to the Financial Superintendency of Colombia for 2014, The Directors’ Committee, by the unanimity of its as explained, doesn’t compromise neither the technical members, agreed to appoint as Secretary Ad-Hoc for suitability nor the independence of judgement of the the effects of this session, to Mrs. Mónica Fernández respective external audit company (Ernst & Young). Correa. The Directors’ Committee examined the complaints 8, 2015: It was agreed, unanimously, to authorize the received in the Ethic Channel, in accordance with the electronic dispatch to the Directos members of this presentation of the Internal Audit Officer of Enersis, Board and to take every measure needed for its proper Mr. Alain Rosolino. The Director Rafael Fernández implementation. 14.- EXTRAORDINARY SESSION HELD ON SEPTEMBER 48 2015 Annual Report Enersis The Directors’ Committee, agreed, unanimously, to 15.- EXTRAORDINARY SESSION HELD ON SEPTEMBER have formally received in this session an Independence 15, 2015: The Directors’ Committee, agreed, by the Declaration of IM Trust Asesorías Financieras S.A., mayority of its members and with the dissentive vote made by its representantives before Notary Public, thus of Mr. Rafael Fernández Morandé, to declare the hiring certifying its independence. of the expert from Chilectra Mr. Mario Torres, as a legal person, who doesn’t compromise the technical Unanimously, the Committee agreed to take note of suitability nor independence of judgement of KPMG, the presentation related to the preliminary analyses company where Mr. Torres is partner. of the corporate reorganization operation anfd the methodology to be applied made by IM Trust, providing 16.- ORDINARY SESSION HELD ON SEPTEMBER 28, them with guidelines to continue with their services in 2015: The Directors’ Committee, agreed, unanimously, the future. Likewise, it agreed unanimously to bring to recommend the Doard of Directors of Enersis to the information presented and analized during the approve, in the terms requested by Ernst & Young session, kept as confidential, pursuant to articule 54, and pursuant to the compliance of the requirements third section, of Law N°18,046, which contains strategic indicated in the Ordinary Resolution N° 3048 of the information of the Company which, being known in Superintendency of Securities and Insurances dated advance, would seriously affect the social interest. April 13, 2004, and completed by the Ordinary Rule There were many questions and observations from the N°12,826 of December 7, 2005, of the SVS. With members of the Directors’ Committee. regards to the documentation and information to be provided and corresponding specifically to a subsidiary The Director Rafael Fernández Morandé, asked the of Enersis, this authorization should be granted under Executive Officer whether the executive of Enel in the condition precedent and determining to obtain the respect of which there was a complaint for mistreatment previous written consent of the pertaining subsidiary of two Executives, and specifically asked why we was or subsidiaries. All of which is to aid Ernst & Young to present at Enersis’ offices. The Director Fernández comply with the requirements of the Public Company Morandé said that this Executive of Enel might have Accounting Oversight Board (PCAOB). access to priviledged information, whereby he shouldn’t have an office in the building and no access to the Mr. Luca D’Agnese, Executive Officer of the Company, restructuring operation, so that the Executive Officer who made a presentation related to the services expressed that this person is performing a support to be contracted to the external auditors, about the activity of which he is responsible. The Director Rafael revision of the new companies “Endesa Américas” and Fernández expressed to be against the presence of “Enersis Chile”, as of 09/30/15, under PCAOB, to be such person in the Company, and declared to be against included in the Stock Exchange in United States. The the fact that he has access to the information regarding Directors’ Committee, by mayority of its members and the advances of the corporate restructuring. with the abstention of the Director Rafael Fernández Morandé, agreed to declare that the aforementioned Next, the Director Rafael Fernández Morandé referred contract of services of external audit compromises to the change of policy performed by the General neither the technical suitability nor the independence of Management with regards to inflation and salary judgement of the external audit company. The Director adjustments, taking into account that inflation and the Rafael Fernández Morandé expressed that the reason eventual adjustments that historically were granted in for his abstention is because the corporate restructuring July each year and were paid retroactively from January operation has not been approved and thus he doesn’t of the same year and that, nevertheless, such practice agree to perform expenses related to something that was suppressed from the Enersis Group. The Director might eventually don’t obtain the approval. Fernández Morandé objected the latter, indicating that that wasn’t the Company’s practice and he wanted 17.- EXTRAORDINARY SESSION HELD ON OCTOBER 13, to put on record that this Committee wasn’t timely 2015: Representatives of IM Trust presented the degree informed and that the Board of Directors didn’t approve of progress of the study requested by the Directors’ such change. Committee. The Director Rafael Fernández Morandé Administration 49 pointed out that they expect expected a complete Gaisbauer, explained the development of his work. analysis of what the Enersis Group is, because Enersis The Director Fernández Morandé asked if the report is a holding mainly comprised by its direct participations would be signed by Mr. Malla or by Deloitte, to which in addition to those it owns through Endesa Chile and Mr. Malla said that the valuation report will be signed Chilectra, to which IM Trust answered that the study by Deloitte Adviser, while the report related to the relates to the Enersis Group consolidated. The Director exchange relation or expert report will be signed by Fernández Morandé emphasized that the interest of the Mr. Malla. He added that he takes the independent controlling shareholder is not being analized, but the report prepared by Deloitte as a reference, with all the best social interest of Enersis, to which the Director safeguards and clauses that correspond to a valuation Herman Chadwick mentioned that one aspect of Enersis’ report for this purpose and the accounting information interest is to determine how the controller operates in provided by the Management. Mr. Malla pointed out order to make Enersis and its subsidiaries’ businesses that these safeguards were related to the information profitable in the best way, and emphasized that if Enersis provided by the Management of the Company, the is profitable, every shareholder of the company is auditor and balance sheets he received as input, but no benefited, not only the controller. The Director Fernández with respect to Deloitte. Morandé pointed out that there are companies that are organized by country, others by lines of business and After the presentation of the expert, followed a long others choose a matrix structure, then he is asking if series of questions and an extended interchange the scheme that Enel is proposing corresponds to an of opinions with the participation of the Directors example of the global companies mentioned in the members of the Committee. presentation, to which IM Trust answered that there is no one, and that there’s neither a company trading in a The Chairman of the Directors’ Committee refered to country with aseets in other country. the Communications Plan developed by the Company, Then followed an intense series of questions from out that that subject will be treated in the extraordinary the Director Mr. Rafael Fernández Morandé regarding session of the Board of Directors scheduled for to which the Legal Councel of the Company pointed different relevant matters of the presentation performed November 5. by IM Trust, as well as the comments of the Chairman of the Directors’ Committee regarding these matters. 20.- EXTRAORDINARIA SESSION HELD ON OCTOBER 27, 2015: The expert Mr. Rafael Malla made his 18.- EXTRAORDINARY SESSION HELD ON OCTOBER presentation, helped by Mr. Christoph Gaisbauer. The 22, 2015: IM Trust presented the degree of progess Director Fernández Morandé said that he would like of the restructuring operation analysis of Enersis S.A. to have a comparative chart of the figures used to The Director Fernández Morandé asked how that value estimate the “holding” discount, to be figures that one was formed, which was explained by IM Trust. IM Trust can compare with the ones being estimated for the pointed out that Endesa Chile is a holding company that exchange terms. After the representatives of IM Trust owns some liquid participations which corresponds made a presentation of the degree of progress of their to companies that trade for themselves and also has study, and mentioned that the idea of that section was assets that are traded, but don’t have market value. to show the results for the exchange ratio, to which the Then followed a long series of questions and exchange like to see the figures for each company according to of opinions from the members of the Committee the estimation they made for ratios for the calculation regarding the relevant matters exposed in the of the “holding” discount. The representatives of IM presentation. Trust said that they already have these valuations and Director Fernández Morandé indicated that he would 19.- ACT OF THE EXTRAORDINARY SESSION HELD discounts. ON OCTOBER 23, 2015: Mr. Rafael Malla, expert Both presentations were followed by a long series of professional appointed by the Board of Directors, who questions and exchange of opinions from the Directors attended the meeting with his assistant Mr. Christoph members of the Committee. 50 2015 Annual Report Enersis The Director Rafael Fernández Morandé asked if Mr. 30, which were also audited and corresponds to the Marco Palermo was still in the building and what he statement of changes in equity and the respective cash was doing there, while not being and employee of flow. The Directors’ Committee, unanimously, declared Enersis. examined the Consolidated Financial Statements of Enersis S.A. as of September 30, 2015, its Notes, The Chairman of the Directors’ Committee, Mr. Hernán Reasoned Analysis, Relevant Events and the letter Somerville, mentioned that according to his experience, related to the operations between related parties, and its normal that there is interaction between subsidiaries agreed to recommend their approval to the Board of and parent companies, particularly to enable the Directors of the Company. consolidation processes and he understood that such was the case. The Director Herman Chadwick said The Directors’ Committee, by a majority of its that the subsidiaries, either Chilean or foreing, keep members and with the dissenting vote of the Director permanent contact with employees of their parent Rafael Fernández Morandé, agreed to take note of companies to address different maters and added that the consolidated proforma statements of the financial he wasn’t aware that this person handles priviledged position of Enersis Américas and Enersis Chile as of information and added that he has no doubt that the October 1, 2015, and also its respective explanatory Administration, Finance and Control Management is notes, agreement that is subject to the following careful with these matters. concurrent conditions. This proposal, specifically those called economic and financial assumptions, which 21.- ORDINARY SESSION HELD ON OCTOBER 30, serve to support those proforma financial statements, 2015: The Chairman of the Directors’ Committee, Mr. which will be subject to the approval of the Board Hernán Somerville Senn, briefly analyzed the results of Directors of Enersis, Endesa Chile and Chilectra, of the Company as stated in the financial statements meetings that will take place the very same day, received on Tuesday October 2. Messrs. Emir Rahil together with the proforma financial statements, so and Emiliano Ramos, from the external audit company the acknowledgement of the Committee is subject to of Enersis S.A., presented the aforementioned a double condition: first, the Board of Directors that documents and asked the questions. The Director sessions that same day approve such assumptions, Rafael Fernández commented that the Directors’ same as the Boards of Endesa Chile and Chilectra and, Committee has periodically requested the confirmation second, the Board should respond positively about the of Ernst & Young that what’s being reflected in the corporate restructuring under study. The Director Rafael notes is reasonable in terms of provisions, and Fernández Morandé substantiated its vote against added that that wasn’t exactely what Ernst & Young the acknowledgement of these proforma financial was referring to, before which the partners of the statements due to the following reasons: first, because external audit company indicated that thay mentioned the information delivered is incomplete and includes it in the negative assuring sense, meaning that they an investment plan not yet approved by the Company; didn’t find anything that made them have doubts that second, it considers a cash allocation that he doesn’t what was indicated there wasn’t right, and added agree with; third, he was’t aware of the remaining that a “full” audit was performed to the quarterly assumptions because he needed to have a deeper financial statements, so the they have provided more understanding of the background information; fourth, confidence. The Chairman of the Committee asked the decisions are being assumed by the Committee and representatives of Ernst & Young whether something Board of Directors of Endesa Chile that this Directors’ extraordinary was made exclusively for the corporate Committee should be aware of before taking any reorganization operation, to which they answered that decision, and fifth, considers that this matter should they issued an opinion regarding an interim financial have been examined by the Directors’ Committee after statement under official nomenclature and also that the approval from the Board of Directors of Enersis of they included a consolidated statement of financial the respective economic and financial assumptions. position as of September 30, 2015, integral results for the two periods because includes the nine-period The Directors’ Committee, unanimously, took note oaf and also the three month period ended on September the presentation of Mr. Rahil (Ernst & Young) and declared Administration 51 as examined the topics of the presentation, from which Administration, Finance and Control Management no issues related to 1 d) of NCG 385 came up. department, displayed on the screen the current the current status of the Directors’ Committee report 22.- EXTRAORDINARY SESSION HELD ON NOVEMBER draft, read it and included several comments and 2, 2015: The Chirman of the Directors’ Committee, Mr. observations made by the members of the Board. Hernán Somerville Senn, informed that it proceed to receive the final report prepared by the advisor of that 25.- EXTRAORDINARY SESSION HELD ON NOVEMBER entity. An intense discussion followed, at the end of 11, 2015: The Directors’ Committee, by unanimity which, the Directors’ Committee, unanimously, agreed of its members, agreed to approve the minutes to receive the final report issued by IM Trust regarding corresponding to the extraordinary session held on the corporate reorganization. Likewise, the Directors’ October 27, 2015, the ordinary session held on October Committee, unanimously, agreed to receive the final 30, 2015 and the extraordinary sessions held on report issued by the expert Mr. Rafael Malla regarding November 2, 2015 and November 3, 2015, and each the corporate reorganization. In both cases, in the member of the Committee signed them. terms prescribed by the Corporates Law and pursuant to Regulation N°15.443 of July 20, 2015, issued by the 26.- EXTRAORDINARY SESSION HELD ON NOVEMBER Superintendency of Segurities and Insurances, the 16, 2015: The Directors’ Committee, by unanimity Directors’ Committee authorized, unanimously, the of its members, agreed to approve the minutes Chairman of that entity, Mr. Hernán Somerville Senn, to corresponding to the extraordinary session held on deliver a copy of the final report issued by the advisor November 4, 2015, and the extraordinary session IM Trust in relation to the evaluation of the corporate held on November 11, 2015, and each member of the restructuring operation to the Board of Directors of the Committee signed them. Company. 27.- ORDINARY SESSION HELD ON NOVEMBER 24, 23.- EXTRAORDINARY SESSION HELD ON NOVEMBER 2015: The Directors’ Committee, unanimously, agreed 3, 2015: Mr. Juan Francisco Gutiérrez, senior partner to put on record to have examined and had formally and in Chile of the legal firm Philippi Prietocarrizosa & Uría, expressly took note of the Preparatory Letter of Internal provided a summary of the main milestones of the Control addressed to Enersis S.A., dated November 20, aforementioned legal opinions, copy of which were 2015, which was prepared by the external auditors of distributed to the members of the Directors’ Committee the Company, Ernst & Young. the day before. The members of the Committee asked different questions and comments, and the Director Mr. The Directors’ Committee agreed, by unanimity of Rafael Fernández Morandé remarked its opposition to its members, to declare the contracting of external some of the conclusions of the aforementioned legal audit services of Codensa to Ernst & Young, don’t firm. compromise neither the technical suitability nor the judgement idependance of the external audit company. The Directors’ Committee by the majority of its members, and with the dissenting vote of the Director Mr. Rafael The Directors’ Committee, by unanimity of its Fernández Morandé, who also pointed out that this members, agreed to declare as examined the operation topic should be considered after the Board of Directors between related parties related to the structuring of decide whether to go forward with the reorganization, an intercompany loan granted by Enersis S.A. to its and agreed to propose Ernst & Young as external subsidiary Endesa Chile, in the terms exposed by the auditors of the new company resulting from the division, Administration, Finance and Control Officer and issued agreement conditioned to the approval of the Board of the corresponding report. Directors of the corporate reorganization and to convene a shareholders meeting to discuss such issue. The Directors’ Committee, by the majority of its members and with the dissenting vote of the Director 24.- EXTRAORDINARY SESSION HELD ON NOVEMBER Rafael Fernández Morandé, declared to have examined, 4, 2015: Mr. Nicolás Donoso, who works at the from the social interes of the corporate reorganization 52 2015 Annual Report Enersis point of view, over which the Committee and the Board Endesa Chile S.A., KPMG, explained by the Chairman of Directors of the Company have already pronounced, of the Committee, Mr. Hernán Somerville Senn, which an indemnity commitment of Enersis in favor of Endesa was solved and clarified, and that the approval of the Chile whose terms should be negotiated in good faith consolidated financial statements of Endesa Chile as of by representatives appointed for the purpose by each September 2015, under IFRS standards, will be issued of the companies Enersis and Endesa Chile, thus without objections. recommending its negociation from the Company in the terms exposed by the Executive Officer. They The Directors’ Committee, unanimously, agreed to highlighted that the result of such negociation should have examined the financial statements under IFRS be promptly presented to the respectives Committees incorporated in the Registration Statement to be and Boards of each companies, to meet thoroughly registered in the Securities and Exchange Commission with Title XVI regarding operations between related of the United States of America (SEC) under the parties of the Corporates Law. modality “confidential filing”, with the purpose of The Director Fernández Morandé communicated by such public authority related with the securities complying with the norms and requeriments issued its vote against the indemnity supported in the fact issuance in that country. that it’s against the social interest of Enersis. These benefits will be perceived in the long term and are The Directors’ Committee, unanimously, agreed to subject to the fact that no regulatory changes would approve a new schedule for the ordinary sessions of come up in the different countries, particularly in Brazil, the Directors’ Committee, without prejudice of the Colombia, Peru, Argentina and Chile. He highlighted notices to extraordinary sessions. that in Chile each government approves tax reforms, so it might be expected that in an horizon of more than 29.- EXTRAORDINARY SESSION HELD ON DECEMBER five years, period required to equalize tax costs and 4, 2015: The Directors’ Committee, unanimously, benefits its highly likely that there will be tax reforms agreed to have examined the operation between that impact such potential benefits, so these benefits related parties regarding the provision of guarantees might not be produced. Additionally, he pointed out from Enersis S.A. in favor of its subsidiary Ampla that he doesn’ see any reason why Enersis should Energia, in the terms exposed by the Executive Officer compensate Endesa, and if any company should do and the Administration, Finance and Control Officer, it, that would be Enel S.p.A., so he proposes that and issued the respective report. Endesa Chile negotiates with Enel S.p.A. and not with Enersis, because Enel S.p.A. is the promoter of this The Directors’ Committee, unanimously, agreed to geographic reorganization whose purpose is, according have examined the operation between related parties to statements made by Enel, to be consistent with the regarding the postponement made by Enel Brazil way to manage its businesses. Enersis isn’t creating any and Ampla Energia e Servicios of the total accrued damage to Endesa. He emphazised that the scenario dividends payments of the period 2014, scheduled to where the companies remain divided and not merged is be paid in December 2015, for up to 24 months in the intolerable for the shareholders of Enersis and Endesa case of Enel Brazil, meaning, until December 2017, and Chile, scenario that has potential very negative effects in the case of Ampla until 2020 (to be likely paid during in the value of the stock, addressing that six companies December, which has been the standard practice in the will remain; due to the above is therefore less reason last years), in the terms exposed by the Administration, why Enersis compensates Endesa Chile. Finance and Control Officer, and issued the respective 28.- ORDINARY SESSION HELD ON DECEMBER 2, report. 2015: The Directors’ Committee, unanimously, agreed The Directors’ Committee of Enersis S.A., unanimously, to approve the consolidated financial statements of agreed to approve the proposed Annual Management Enersis as of September 30, 2015 issued under IFRS Activities and Expenses Report of the Directors’ standards, subject to the condition of the potential Committee, with the purpose of being informed in the loss of independence of the independent auditor of next Ordinary Shareholders’ Meeting and to be included Administration 53 in the Annual Report of the Company. Likewise, it was agreed that, if another session of the Directors’ Committee would take place in 2015, this has to be included in this report. 30.- EXTRAORDINARY SESSION HELD ON DECEMBER 17, 2015: The Directors’ Committee, by the majority of its members and with the dissenting vote of the Director Rafael Fernández Morandé, agreed to declare Expenses of Enersis S.A. Directors’ Committee examined the letters issued recently by Enel S.p.A. and The Board of Directors prepared the expenses budget AFPs Provida, Cuprum and Capital with the occasion approved by the Ordinary Shareholders’ Meeting held on April of the corporate restructuring, and declared to have 28, 2015, to contract a financial advisor, within the context of reviewed favourably the new wording of the indemnity the ongoing corporate reorganization. letter that Enersis S.A. would issue in favor of Endesa Chile in the scenario that the merger related to the second stage of the aforementioned reorganization. The Directors’ Committee, by the majority of its members and with the dissenting vote of the Director Herman Chadwick Piñera approved to recommend to the Chairman of the Board of Directors to brief on the The Directors Committe, diring the Exercise 2015, reviewed the following Operations Between Related Parties (OPR) situation in Brazil at the extraordinary shareholders’ 1. At the ordinary session held on January 29, 2015, the meeting to be held on December 18, 2016. Directors Committee, agreed, by the unanimity of its members, to declare as examined, thus contributing to In this way, and as informed in this report, the the social interest of Enersis S.A. and being adjusted in Directors’ Committee has fulfilled thoroughly the price, terms and conditions to those that currently prevail obligations contained in Article 50 bis of Corporations in the market, the operation related to the subscription Law N°18,046. of mandate contract for the expenses reimbursement between Enersis S.A. and: Enel S.p.A., Enel Servizi S.R.L., Enel Green Power, Enel Produzione S.p.A., Enel Italia S.R.L., Enel Iberoamérica S.R.L., Endesa Latinoamérica, S.A., Endesa S.A., Codensa S.A. ESP, Emgesa S.A. ESP, Enel Brasil S.A., Ampla Energía y Servicios S.A., Edegel S.A.A., Edelnor S.A.A., and other individuals related with expatriates employees, in the terms presented at the session, then to issue the corresponding report. Also in the session, it was declared likewise that the operation formerly described involves an amount not relevant for the purpose of the Article 147 of Corporations Law 18,046 and, therefore, its included in the exceptions established in item a) of article 147. 2. At the ordinary session held on April 27, 2015, the Directors Committee, by the unanimity of its members, agreed to declare as examined, thus contributing to the social interest of Enersis S.A. and being adjusted in price, terms and conditions to those that currently prevail in the market, the operation between related parties consists 54 2015 Annual Report Enersis of the restructuring of an intercompany loan granted by Likewise, unanimously, in the same session, the Enersis S.A. in favor of its subsidiary Endesa Chile, in Directors’ Committee agreed to declare as examined the terms presented by the Administration, Finance and the operation between related parties consisting on Control Officer and to issue the respective report. This loans granted by Enersis S.A. in favor of Enel Brasil and intercompany loan will be in US dollars, of up to USD 377 Ampla Energia e Servicos for up to 24 months in the million, maturing in December 2015. Likewise, the session case of Enel Brazil, meaning until December 2017, and agreed to declare this operation to be part of the regularity in the case of Ampla until 2020, in the terms exposed policy of the Company, and the above notwithstanding, by the Administration, Finance and Control Officer, thus this Committee addresses its analysis. contributing to the social interest of Enersis S.A. and being adjusted in price, terms and conditions to those 3. At the ordinary session held on November 24, 2015, the that currently prevail in the market, and to issue the Directors Committee, by the unanimity of its members, corresponding report. The total amounts of the loans for agreed to declare as examined, thus contributing to the Enel Brasil are BRL 175,757,451 (approximately USD social interest of Enersis S.A. and being adjusted in price, 45.5 million) and BRL 46,237,166 (approximately USD terms and conditions to those that currently prevail in 12.0 million) for Ampla. the market, the operation between related parties that consists of the restructuring of an intercompany loan granted by Enersis S.A. in favor of its subsidiary Endesa Chile, in the terms presented by the Administration, Finance and Control Officer and to issue the respective report. This intercompany loan will be in US dollars, of up to USD 250 million, for a term of up to 12 months, prepayable by neither Enersis nor Endesa Chile. Likewise, the session agreed to declare this operation to be part of the regularity policy of the Company, and the above notwithstanding, this Committee addresses its analysis. 4. At the ordinary session held on December 2, 2015, the Directors Committee, when analyzing the operation between related parties, related to the approval of loans from Enersis S.A. to Enel Brazil and Ampla Energia e Servicos S.A., agreed to issue a report notwithstanding to review this loans and the alternative of a guarantee in a forthcoming session of the Committee, with the additional information to be presentd by the Administration, Finance and Control Management. 5. At the ordinary session held on December 4, 2015, the Directors’ Committee, by the unanimity of its members, agreed to declare as examined the operation between related parties consisting on the granting of guarantees from Enersis S.A. in favor of its subsidiary Ampla Energia, in the terms exposed by the Executive Officer and the Administration, Finance and Control Officer, which contributes to the social interest of Enersis S.A., and being adjusted in price, terms and conditions to those that currently prevail in the market, and to issue the corresponding report. Administration 55  Organizational Structure BOARD OF DIRECTORS CHAIRMAN Borja Acha CHIEF EXECUTIVE OFFICER Luca D’Agnese (1) DEPUTY CHIEF EXECUTIVE OFFICER Daniel Fernández INTERNAL AUDIT OFFICER Alain Rosolino COMMUNICATIONS OFFICER INSTITUTIONAL RELATIONS OFFICER HUMAN RESOURCES AND ORGANISATION OFFICER CHIEF FINANCIAL OFFICER GENERAL COUNSEL PROCUREMENT OFFICER José Miranda Francesco Giorgianni Paola Visintini Javier Galán Domingo Valdés Prieto Antonio Barreda (2) PLANNING AND CONTROL OFFICER Marco Fadda 56 2015 Annual Report Enersis  Main Executives 1 3 7 2 4 8 1. CHIEF EXCECUTIVE OFFICER Luca D’Agnese Phisics Degree Scuola Normale Superiore de Pisa Master in Business Administration Escuela de Negocios de INSEAD Rut: 24,910,349-7 From 01.29.2015 (1) Luca D’Agnese took office on 01.29.15 substituting Luigi Ferraris. In turn, Luigi Ferraris has held the position to to substitute Ignacio Antoñanzas on 11.12.2014. 2. DEPUTY CHIEF EXECUTIVE OFFICER Daniel Mauricio Fernández Koprich Civil Engineer Universidad de Chile Rut: 7,750,368-4 From 11.12.2014 3. INTERNAL AUDIT OFFICER Alain Rosolino Business Administration Degree Universidad LUISS Rut: 24,166,243-8 From 12.12.2012 4. COMMUNICATIONS OFFICER José Miranda Montecinos Audiovisual Communicator Instituto Profesional DUOC UC Executive Competencies Diploma, Universidad de Chile Corporate Undertaking and Open Innovation Studies, Berkeley University Rut: 15,307,846-7 From 12.01.2014 Administration 5 9 6 10 5. INSTITUTIONAL RELATIONS OFFICER Francesco Giorgianni Lawyer Universidad de Roma La Sapienza Rut: 24,852,388-3 From 12.15.2014 6. HUMAN RESOURCES AND ORGANISATION OFFICER Paola Visintini Vaccarezza Psychologist Universidad de Chile Leadership and Coaching Diploma Universidad Adolfo Ibáñez Rut: 10,664,744-5 From 12.12.2014 7. ADMINISTRATION, FINANCE AND CONTROL OFFICER Francisco Javier Galán Allué Economist Universidad Complutense de Madrid Master in Business Administration Instituto de Empresas de Madrid Rut: 24,852,381-6 From 12.15.2014 8. PLANNING AND CONTROL OFFICER Marco Fadda Economic Sciences Graduate Universidad de Génova Master in Network Companies’ Administration Universidad Politécnica de Milan Rut: 24,271,056-8 From 04.01.2013 9. GENERAL COUNSEL Domingo Valdés Prieto Lawyer Universidad de Chile Master of Laws Universidad de Chicago Rut: 6,973,465-0 A partir de 04.30.1999 10. PROCUREMENT OFFICER Antonio Barreda Toledo Electrical Execution Engineer Universidad Santiago de Chile Diploma IN Administración de Empresas (ESAE) P. Universidad Católica de Chile Master in Business Administration P. Universidad Católica de Chile Rut: 7,625,745-0 From 01.29.2015 (2) Antonio Barreda held the position on 01.29.2015 to substitute Eduardo López. 57  Compensations of managers and senior executives During 2015, the remunerations and benefits received by the Chief Executive Officer and the senior executives of the Company amounted to $3,308 million in fixed remunerations and $802 million in variable remuneration. During 2014, the remunerations and benefits received by the Chief Executive Officer, and the senior executives of the Company amounted to $3,028 million in fixed remunerations and $1,392 million in variable remunerations and benefits. This amount included compensations for senior managers and executives in exercise as of December 31, each year, as well as those that left the company all along the respective period. Benefits for managers and senior executives The Company provides the benefits of a supplementary health insurance and a catastrophic insurance for its main executives and their family group that is credited as a dependent charge. In addition, the Company has life insurance for each main executive. These benefits will be granted in conformance to the management level that corresponds to the employee at each time. In 2015, the amount was $15 million, which was included in the remunerations received by the senior management. 58 2015 Annual Report Enersis  Incentive plans for managers and senior executives Enersis has an annual bonus plan for complying with objectives and the level of individual contribution to the company results for its executives. This plan includes a definition of the ranges of bonus according to the hierarchical level of the executives. Bonuses are given to the executives consisting in a determined number of gross monthly wages. Severance paid to managers and senior executives In reference to compensation for years of service (severance) received by managers and senior executives that left the company, $368 million were paid during 2015. Property over Enersis As of December 31, 2015, the register of shareholders reflected that no main executive had ownership on the Company. Administration 59  Administration of main subsidiaries BRAZIL Cachoeira Michele Siciliano Mechanic Engineer Università degli Studi della Calabria Fortaleza Michele Siciliano Mechanic Engineer Università degli Studi della Calabria CIEN Abel Alves Rochinha Mechanic Engineer Pontifícia Universidad Católica Río de Janeiro Ampla Abel Alves Rochinha Mechanic Engineer Pontifícia Universidad Católica Río de Janeiro Coelce Abel Alves Rochinha Mechanic Engineer Pontifícia Universidad Católica Río de Janeiro Prátil Marcus Oliver Rissel Industrial Engineer Universidad de Buenos Aires (UBA) CHILE Endesa Chile Valter Moro Mechanic Engineer Universidad Politécnica de Marche Italia Chilectra Andreas Gebhardt Strobel Civil Hydraulic Engineer Pontificia Universidad Católica de Chile COLOMBIA Emgesa Lucio Rubio Díaz Degree in Economic and Business Sciences Universidad Santiago de Compostela Codensa David Felipe Acosta Correa Electronic Engineer Universidad Pontificia Bolivariana PERÚ Edegel Francisco Javier Pérez Thoden Van Velzen Industrial Engineer Escuela Técnica Superior del ICAI, Universidad Pontificia Comillas en España Edelnor Walter Sciutto Brattoli Electronic Engineer Universidad Tecnológica Nacional en Argentina Country Manager Carlos Temboury Molina Industrial Engineer Universidad Politécnica de Madrid ARGENTINA Costanera Roberto José Fagan Electronic Engineer Universidad Nacional de la Plata Maestría en Administración Mercado Eléctrico Instituto Tecnológico de Buenos Aires Hidroeléctrica El Chocón Néstor Carlos Srebernic Industrial Engineer specialized in Electronics Universidad Nacional de Comahue Edesur Blanco Juan Carlos Electronic Engineer Universidad Tecnológica Nacional Central Dock Sud Manifesto Gustavo Diego Electromechanic Engineer Universidad de Buenos Aires 60 2015 Annual Report Enersis Administration 61 Human Resources Human Resources 63 64 2015 Annual Report Enersis  Human Resources Distribution The Company’s employees’ distribution as of December 31, 2015, including information related to the subsidiaries in the five countries wehere Enersis Group operates in Latin America and the joint control entities, is the following Company Enersis Enel Brasil (1) Endesa Chile (2) Chilectra (3) Edesur (4) Endesa Costanera Mercosur Chocón Transportadora de Energía Gas Atacama Argentina Edelnor (5) Edegel Emgesa Codensa Servicios Informáticos e Inmobiliarios Ltda (6) Managers and Senior Executives 9 26 9 8 39 4 Professionals and Technicians 365 2,174 940 564 3,138 422 Employees and Others 98 459 48 114 1,080 59 1 2 27 15 12 24 3 34 1 11 644 245 484 996 104 11 18 14 14 6 Total 472 2,659 997 686 4,257 485 4 47 1 29 671 260 510 1,034 110 Total general 176 10,125 1,921 12,222 (1) (2) (3) (4) (5) (6) Includes Ampla, Coelce, CIEN, CTM, TESA, Cachoeira Dourada, Fortaleza, and En-Brasil Comercio y Servicios. Includes Pehuenche, Gas Atacama Chile Includes Empresa Eléctrica de Colina y Luz Andes. Includes: Cemsa y Dock Sud. Includes: Piura y Generalima. Includes: Ex-ICT y Ex-Manso de Velasco. Aguas Santiago Poniente y Const, and Los Maitenes Project are not included and were sold. Human Resources 65  Social Responsibility and sustainable development Diversity in general management and the other management departments reporting to the latter or to the Board of Directors Number of people by gender: Number of people by range age: Female Male General Total Number of people by nationality: Chilean Spanish Italian General Total 1 8 9 5 1 3 9 Between 30 and 40 years old Between 41 and 50 years old Between 51 and 60 years old General Total Number of people by seniority: Less than 3 years Between 9 and 12 years More than 12 years General Total 1 2 6 9 6 1 2 9 66 2015 Annual Report Enersis Diversity in the organization Number of people by gender: Female Male General Total Number of people by nationality: American Argentinean Brazilean Chilean Colombian Spanish Italian Panamanian Romanian Venezuelan Enersis 194 269 463 Enersis 1 3 9 431 6 5 4 1 2 1 ICT 28 82 110 ICT - 4 2 97 3 3 1 Number of people by range age: Less than 30 years old Between 30 and 40 years old Between 41 and 50 years old Between 51 and 60 years old Between 61 and 70 years old General Total Number of people by seniority: Less than 3 years Between 3 and 6 years More than 6 and less than 9 years Between 9 and 12 years More than 12 years General Total Enersis ICT 22 193 144 82 22 463 4 40 30 29 7 110 Enersis ICT 66 67 61 54 215 463 13 21 21 7 48 110 General Total 463 110 Average Fixed Salary of women with respect to men according to their professional level Contents Senior Management Middle management Administrative and office staff Average % % % % 78 103 96 98 Human Resources 67  Human Resources Activities Labor Relations During 2015 the collective bargaining process with Enersis’ Worth is to mention the continuity of the regular meetings Administrative and Professional Unions took place, within program with the trade unions, which has enabled it to a rule-based framework and in the legal dates established. consolidate, over time, an open dialogue, sincere and without This process concluded with two Collective Agreements with any restrictions with the employees’ representatives, for the duration of four years. benefit of improving the work conditions and the employees’ atmosphere. 68 2015 Annual Report Enersis Labor Security and Health At Enersis occupational safety and health are objectives tightly linked to the business, which due to its nature is subject to critical risks. In the continuous improvement process, where everybody contributes, leadership is a value that highlights especially with regards to the real integration of occupational health and safety at all levels and in every activity that the company developes, thus strengthening its priority in corporate management due to its strategic importance. In the field of leadership, active participation of all areas in the company is encouraged, in risks control for all employees in their different activities; through the review of preventive management in Safety Committees; revision of safety conditions on site through the Safety Walks, Ipal and One Safety programmes; risk prevention training plans and safety campaigns. Innovations have also been implemented that have enabled providing employees exposed to risks with equipment such as fireproof clothing, face shields for protection against electricity arch, work at a height systems, and other elements with high safety standards that guarantee maximum protection for the employees. It is worth noting that, with the purpose of reaching the zero accident goal, Enersis has established safety alliances with contracting companies, in order to standardise best practices in this field, highlighting One Safety, so as to improve field work behavior and eliminate hazardous behaviours at the works. In Labor Security and Health, the following programmes stand out: Health Dissemination and Promotion The objective of this programme is to provide health, educate and train the employees of the company through activities related to the promotion of health in quality of life who includes widespread dissemination through posters, graphic material and information sent through mail, denominated “Advices that give life”. Among the topics that feature every month, there are: > March: anti-stress campaign: Disclose practical > August: Heart care campaign: Provide practical recommendations to suppress stress causes. recommendations for the heart care. > April: Immunization campaign: Invitation to vaccination to > September: Colon and gastric cancer campaign: Provide prevent influenza. practical recommendations for the timely of these deseases > May: Anti-smoking campaign: Provide advices to prevent smoking habits. through the preventive examination. > October: Breast cancer prevention: Invitation to participate in the prevention of this desease through the early > June: Prostate and cervical cancer: Disclose advices for detection. the detection of these deseases through an invitation to an annual preventive examination. > November: Power your energy campaign: Deliver practical recommendations for nutrition to improve the quality of life. > July: Viral contagion prevention and respiratory diseases: Disclose practical recommendations to prevent contagion > December: Skin care all year long campaign: Promote of these deseases. advices for skin care against ultraviolet radiation and other agents. Human Resources 69 Immunization Campaign The immunization for the employees of the Enersis Group is a preventive measure available for every employee of the company, whose main objective is to prevent the appearance of diseases of the recurring massive contagion, who might cause abseinteeism and damages to the employees’ quality of life. Influenza Seasonal Vaccine, Trivalent: Will be delivered annually during the first quarter of the year, preventing the disease outbreak that starts in the beginning of June. In the period 2015, adherence was 84% of the staff. Preventive Examinations Program The objective of this program is to perform regular medical evaluations to the employees with the objective to allow the early detection of any possible disorder or pathology in people’s health. This program is oriented to every employee of the company and is carried out through a defined protocol according to gender and age, and convenes 57% of the staff. Safety Campaigns Consists of the development of activities within the scope of the International Safety Day and Enel’s Safety Week developed in April and June, respectively. This initiative pursues the promotion and reinforcement of preventive measures aimed to avoid the occurrence of work accidents. 70 2015 Annual Report Enersis Implementation of New Safety Standards Definition and implementation of new signals elements, safety barriers and personal proteccion equipment for high altitude work in the different activities o the company aiming to control risks at work. Safety Training Within the scope of training related to Health and Labor Safety of employees at the work place, and seeking to reinforce our skills in this area, 119 employees of the company and 700 contractors were trained. Development of Training Programs Execution of training programs for emergencies and first aid in work centers. Human Resources 71 People Management Climate Management Climate management and commitment are fundamental Looking forward to maintain permanent contact with pillars of the company’s strategy. During 2015 several activities employees, Enersis has implemented communication continued that pursue to keep motivation, satisfaction and initiatives through which on a daily bassis the company the empoloyees’ commitment. communicates and explains different topics of interest These initiatives aim to improve the following categories, weekly radio show, a website, good practices manuals and a which are part of the instruments used to evaluate the climate monthly newsletter for managers, among other actions. within the company: leadership, communication, meritocracy and development, reconciliation measures and good work Additionally, the company has developed initiatives of focusing on people management. For this purpose, there’s a practices. interaction with Human Resources. These are meetings that set a permanent presence with the management and whose Regarding leadership, Enersis has a strenghthening of leaders objective is to obtain a better knowledge from the employees program, whose objective is to promote and strengthen the regarding the policies and good practices of the company, important role of managers in the generation of organizational together with knowing the needs thay have for theis daily climates that enables the satisfaction and development of jobs. employees. “Leaving Footprints” has been designed as a complete program to train skills, training and accompaniment, Other important initiative is the “Close Manager and Head and comprises the construction of an individual schedule for Plan”, which consists on the promotion of good practices from each manager, and among the activities included, it considers managers and leaders, thus prompting a closer approximation skills training workshops, individual coaching, guided to the daily problems of employees. Some of the alternatives accompaniment at meetings and the creation of a good that the program offers are the following: field visits of practices network of people management. executives, breakfasts and coffees, among others. 72 2015 Annual Report Enersis In the case of the programmes aimed at meritocracy and The program “Acknowledge Ourselves” has continued, development we are managing professional development which seeks to promote the acknowledgement culture within by means of promotion actions on merit and through local the company and to generate formal acknowledgement and offshore job opportunities, where the Group operates. opportunities through perfoming ceremonies in each In 2015 the IDP “Itinerary of Personal Development” was management area, and also general ceremonies in each carried on, a system that identifies the development needs company where outstanding employees are acknowledged, through which employees of the company define, together and job career, among others. with their leader, their current and future development needs, which are acknowledged by the training unit and for the development of the annual training plan. Other interesting initiative is the “One by One” interview; consisting on personalised conversations that enables to deepen motivation and the different people’s work styles, strenghening its degree of commitment and productivity level. In these interviews, also different values are identified as well as the specific needs that each person has with the purpose of satisfying the different professional development models existing in the company. Human Resources 73 Diversity Reconciliation measures Enersis, being part of the group of companies belonging to the Enel Group in Chile, has developed a new Diversity Policy and labor flexibility as part of its strategy, addressing methods related to gender, As part of the reconciliation measures and flexibility, age, nationality and disabilities. This policy promotes the the Telework program, which started in 2012, has been principles of no discrimination, equal opportunities, inclusion consolidated as one of the most valued measures within and balance between personal and work life, as fundamental the company. At present we have 85 teleworkers of the values in the activities performed by the companies of the group in the program, 36 of which are from Enersis, under Group. the modality of one day per week working from home, thus improving the work and personal reconciliation together with One of the new programs in the diversity area was launched their quality of life. in 2015, and was named “Tutorship Program”. This integration initiative, which enables the preparation and orientation of employees in the important transition moments of their professional and personal lives, such as: new recruitments, maternity leaves and employees from different nationalities. 74 2015 Annual Report Enersis Recruitment and Selection Vacancies Coverage Internships and Young For Enersis, the main objective is to bring in the best people for vacant positions, our guiding principle being to favour internal candidates in the first instance. Talent Attraction Program During 2015, 122 vacancies were generated in Enersis In this line, a remarkable project in terms of generating new SA, 65% of which correspond to internal mode coverage, sources of recruitment is the incorporation as practitioners considering as such the implementation of local and and thesis students of young future professionals from the international processes of horizontal and upward mobility, best universities in the country, who are given the opportunity or promotion. to consolidate a gradual learning of Enersis’ complexity and style, thus achieving two objectives which are: availability of Likewise, of the external workforce that joined in 2015 nearby sources of recruitment with relatively fast access, (35% of all vacancies), 13% were internships, which were both by the possibility of having references and direct considered as candidates and were finally hired at the end assessments of students who stand out and can meet not of their term. only technical skills but also the values associated with our company; and additionally, being constantly present in the main universities of our country. This Internship Program runs permanently throughout the year, with the peak of entries during the summer. For the 2015 period, there were a total of 69 students, as trainees or thesis students. In order to build links with the universities and to attract the best students, in 2015 Endesa Chile, subsidiary of the group, participated in the Labor Fair of the Faculty of  Business  Administration  and Economics, University  of Chile, and in the Labor Fair of the Faculty of Engineering, Universidad Católica de Chile. Our stand received students from Industrial Civil Enginnering, Electrical Civil Engineering and Commercial Engineering. Human Resources 75 Diversity and Inclusion For Enersis, having different work teams and cultivating Finally, within the perspective of continuous improvement, an inclusive work environment is essential. This translates this year’s new entrants were followed up through a personal into a permanent search for new ways to enable awareness interview after serving six months in the company. 100% of and to facilitate building a diverse workforce and a work respondents reported feeling completely adapted to their environment where individual differences are respected and position and the company; in the case of Enersis, 100% felt valued. As such, one action is the Entrance Programme’s very satisfied with the selection process and initial support management, which seeks to incorporate trainee students experienced. from technical and professional carreers in situations of physical disability; for such programmes, work alliances are made with various foundations and the Ministry of Education. Likewise, in the line of promoting diversity in all areas and contributing to the generation of development alternatives, the growing participation of women in internal competitions stands out, reaching 40% of total vacancies were filled by women, thereby gradually promoting their empowerment and leadership. It is worth mentioning that of the total externally recruited persons, 69% were women. 76 2015 Annual Report Enersis Educational Action Enersis’ Training Enersis’ training program for 2015 was built and executed our commitment with development, acknowledge and on the basis of two main management principles: first, dissemination of knowledge within the Company. to reach the right balance between educational activities focused on skills development and essencial technical In relation to the development of new behavioral and knowledge for the best performance of our employees management skills, several programs were carried out in their positions, and also the training of behavioral during 2015. Among them, worth is to highlight the competencies which will enable our employees to internal diplomas of Electric Markets and Management increase their possibilities of development within the Control, both of which were provided by Universidad de Group. Chile with a design specially developed for our company’s needs. In the first one, 10 employees participated, The second principle is the training program financing, while the Management Control Diploma assembled 22 regarding the needs detection mechanism that enables employees. In the same context, the activities related the identification, together with the collaborator and the to the development of leadership skills are also worth manager, of technical and behavioral gaps that needs to mentioning, being the managers’ program especially be covered, with regards to the individual productivity in important, which seeks to identify the leadership gaps the workplace in order to access to possible development of each of our managers and to raise a specific training opportunities in the future. The needs detection system plan for their individual needs. During 2015, 24 managers is denomintated IDP (Profesional Development Itinerary), participated in this program. whose implementation takes two years. During 2015, the percentage of employees that had access to at least Finally, and as it has been declared on every level and one of the three activities declared in their IDP, reached segment of employees within the company, the risk 51.2%. prevention, health and in general safety of individuals is a very important focus and means a permanent concern. In In general terms, the performance of training activities in this context, training activities related to safety and Labor Enersis during 2015, had 76,8% coverage, which means Health involved a total of 68 employees. that 367 employees experienced at least one training activity during the year. Total of training hours were 22,841, resulting in a training rate (training hours for each 100 hours worked) was 2%. With regards to technical training, which is the main focus of attention in relation to training, because of the need to update technical knowledge and ensure the acquisition of new management tools, the percentage of training hours focused on this item reached 52.5%, covering a population of 403 employees. Among these technical training activities, worth is to highlight those related to the knowledge management; i.e. activities for the transfer of knowledge and experiences from employees that own a stronger expertise in specific topics to others that are under development process. A total of 16 transfer of knowledge activities were performed, which bolster Human Resources 77 Stock Exchange Transactions Stock Exchange Transactions 79 80 2015 Annual Report Enersis  Exchange Transactions Quarterly transactions in the last three years made in the stock exchanges where the Enersis shares are traded, in Chile, through the Santiago Stock Exchange, the Electronic Stock Exchange of Chile and the Valparaíso Stock Exchange, as well as in the United States of America and in Spain, through the New York Stock Exchange (NYSE) and the Latin American Stock Exchange of the Madrid Stock Exchange (LATIBEX), respectively, are detailed below. Santiago Stock Exchange During 2015, in the Santiago Stock Exchange, 5,720 million shares were traded, equivalent to $1,114,825 million. The closing price of the stock in December was $171,07. Period 1st Quarter 2013 2nd Quarter 2013 3rd Quarter 2013 4th Quarter 2013 Total 2013 1st Quarter 2014 2nd Quarter 2014 3rd Quarter 2014 4th Quarter 2014 2014 Total 1st Quarter 2015 2nd Quarter 2015 3rd Quarter 2015 4th Quarter 2015 2015 Total Shares 2,438,386,788 2,192,921,524 1,972,388,086 1,470,668,035 8,074,364,433 1,623,445,553 1,714,822,877 1,442,088,639 1,374,689,553 6,155,046,622 1,389,153,497 1,579,468,813 1,314,355,177 1,436,751,752 5,719,729,239 Amount (Pesos) 438,757,705,262 374,486,929,466 314,491,374,642 239,826,138,771 1,367,562,148,141 255,577,682,762 307,339,629,430 282,911,479,797 261,198,495,746 1,107,027,287,735 275,998,191,628 334,826,261,051 250,659,886,643 253,340,302,162 1,114,824,641,484 Average Price 179.94 170.77 159.45 163.07 157.34 179.19 196.47 190.63 198.83 211.43 191.24 176.50 Electronic Stock Exchange of Chile In the Bolsa Electronic Stock Exchange of Chile a total of 569 million shares were traded in the year, equivalent to $110,216 million. The closing price of the stock in December was $173.00. Periodos 1st Quarter 2013 2nd Quarter 2013 3rd Quarter 2013 4th Quarter 2013 2013 Total 1st Quarter 2014 2nd Quarter 2014 3rd Quarter 2014 4th Quarter 2014 2014 Total 1er trimestre 2015 2do trimestre 2015 3er trimestre 2015 4to trimestre 2015 Total 2015 Unidades 457,040,369 307,352,957 187,542,120 190,280,215 1,142,215,661 172,383,389 211,681,096 125,894,077 96,224,747 606,183,309 75,325,511 153,979,478 172,604,478 167,393,236 569,302,703 Montos (Pesos) 82,674,197,920 52,399,743,916 30,138,018,160 31,394,375,774 196,606,335,770 27,137,183,296 37,686,041,573 24,592,588,070 18,239,568,492 107,655,381,431 14,893,594,307 33,094,253,771 32,789,265,995 29,438,618,540 110,215,732,613 Precio Promedio 180.89 170.49 160.7 164.99 156.69 178.67 195.60 189.78 197.37 213.08 193.19 176.32 Stock Exchange Transactions 81 Valparaíso Stock Exchange In the Valparaíso Stock Exchange a total of 13.5 thousand shares were traded in the year, equivalent to $2.6 million. The closing price of the stock in December was $200.0. Period 1st Quarter 2013 2nd Quarter 2013 3rd Quarter 2013 4th Quarter 2013 2013 Total 1st Quarter 2014 2nd Quarter 2014 3rd Quarter 2014 4th Quarter 2014 2014 Total 1st Quarter 2015 2nd Quarter 2015 3rd Quarter 2015 4th Quarter 2015 2015 Total Units 7,662,176 5,159,336 33,748,331 0 46,569,843 0 90,400 0 0 90,400 13,500 0 0 0 13,500 Amount (Pesos) 1,409,775,514 834,654,380 5,304,258,272 0 7,548,688,166 0 16,145,440 0 0 16,145,440 2,660,000 0 0 0 2,660,000 Averge Price 183.99 161.78 157.17 178.60 197.5 New York Stock Exchange (NYSE) The stocks of Enersis began to trade in the New York Stock Exchange (NYSE) on October 20, 1993. One ADS of Enersis (American Depositary Share) represents 50 shares and its account name is ENI. Citibank N.A. acts as a depositary bank and Banco Santander Chile as custodian in Chile. During 2015, 191 million ADS were traded, equivalent to US$2,817 million in the United States. The ADS closing price in December was US$12,15. Period 1st Quarter 2013 2nd Quarter 2013 3rd Quarter 2013 4th Quarter 2013 2013 Total 1st Quarter 2014 2nd Quarter 2014 3rd Quarter 2014 4th Quarter 2014 2014 Total 1st Quarter 2015 2nd Quarter 2015 3rd Quarter 2015 4th Quarter 2015 2015 Total Units 45,963,195 50,929,574 36,942,777 33,394,036 167,229,582 44,259,588 38,783,995 34,353,893 31,540,880 148,938,356 31,386,671 52,955,231 46,264,472 60,162,543 190,768,917 Amount (Dollars) 874,885,600 907,083,863 583,580,477 529,200,532 2,894,750,472 629,442,974 624,044,468 583,933,245 500,827,454 2,338,248,140 499,346,581 915,144,721 646,446,669 755,874,266 2,816,812,237 Average Price 19.03 17.81 15.80 15.85 14.24 16.10 16.99 15.91 15.91 17.19 14.09 12.58 82 2015 Annual Report Enersis Latin American Securities Stock Exchange of the Madrid Stock Exchange (Latibex, Bolsa de Valores Latinoamericanos de la Bolsa de Madrid) Enersis’ shares started to trade in the Latin American Securities Stock Exchange of the Madrid Stock Exchange (Latibex) on December 17, 2001. Until April 2011, the conversion unit for the company was of 50 shares and its account name was XENI. Starting from May 2, 2011, the conversion unit was unitary. Santander, S.A. acts as the linking entity and Banco Santander is the custodian in Chile. During 2015, 4.3 million shares were traded, equivalent to 1.0 million Euros. The contracting unit price in December closed at 0.22 Euros. Period 1st Quarter 2013 2nd Quarter 2013 3rd Quarter 2013 4th Quarter 2013 2013 Total 1st Quarter 2014 2nd Quarter 2014 3rd Quarter 2014 4th Quarter 2014 2014 Total 1st Quarter 2015 2nd Quarter 2015 3rd Quarter 2015 4th Quarter 2015 2015 Total Units 1,329,415 1,396,386 2,376,982 1,819,724 6,922,507 3,347,370 3,157,002 3,117,908 1,547,215 11,169,495 786,073 499,252 217,988 2,817,470 4,320,783 Amount (Euros) 383,687 364,307 554,612 418,887 1,721,493 733,639 729,760 751,724 373,001 2,588,124 201,968 143,775 58,438 627,832 1,032,013 Average Price 0.29 0.26 0.23 0.23 0.21 0.23 0.24 0.23 0.25 0.28 0.25 0.23 Enersis has decided to suspend its trading shares from Latibex, effective on December 4, 2015. Stock Exchange Transactions 83 Market Information During 2015, stock prices of the Chilean stock market recorded drops in their performances, thus the IPSA index fell 4.4% compared to 2014. This drop was consistent with the poor performance of the economies in the region, where the main Stock Exchanges showed even greater losses, such as Brazil (-13.5%), Colombia (-26.7%) and Peru (-33.3%). This year also stands out as being one of the worst years in the history for commodities’ prices, thus recording important drops in oil prices, copper, gold and natural gas, among others, thus directly impacting the economies in the region, which are mainly exporters of commodities. Together with this, there was an importante depreciation of the main currencies in Latin America in relation to the dollar of the United States. The latter, together with the low growth of emerging economies, such as China and Brazil, marked the global economic scenario. Santiago Stock Exchange Performance of Enersis’ stock during the last two years compared to the Selective Stock Prices Index (Índice Selectivo de Precios de Acciones, IPSA) in the local market: Variation Enersis IPSA 2014 26.1% 4.1% 2015 -24.9% -4.4% Accumulated 2014-2015 8.5% -0.5% New York Stock Exchange (NYSE) Performance of Enersis’ ADRs listed in the NYSE (ENI) in the last two years compared to the Dow Jones Industrial Index and the Dow Jones Utilities Index during the last two years: Variation ENI Dow Jones Industrial Dow Jones Utilities 2014 6.9% 7.5% 26.0% 2015 -24.2% -2.2% -6.5% Accumulated 2014-2015 -18.9% 5.01% 17.8% Latin American Securities Stock Exchange of the Madrid Stock Exchange (Latibex) Performance of Enersis’ stock (XENI) listed in the Madrid Stock Exchange (Latibex) in the last two years compared to LATIBEX Index. Variation XENI LATIBEX 2014 4.9% -16.1% 2015 -5.5% -39.2% Accumulated 2014-2015 -0.9% -49.0% 84 2015 Annual Report Enersis Stock Exchange Transactions 85 Dividends 86 2015 Annual Report Enersis Dividends 87 88 2015 Annual Report Enersis Pursuant to General Norm N°283, number 5), we transcribe the dividends policies of the company for the periods 2016 and 2015. Dividends Policy for 2016 General Aspects Dividends Policy The Board of Directors of the Company, in session held on The Board of Directors’ intention is to distribute an interim February 26, 2016, approved the following Dividends Policy dividend against 2016 profits, of up to 15% of profits and the corresponding procedure for the dividends payment accounted as of September 30, 2016, as shown in the of Enersis Américas S.A., for the period 2016. financial statements of Enersis Américas S.A. at that date, and payment will be carry out in January 2017. The Board of Directors will propose to the Ordinary Shareholders’ Meeting, to be held during the first quarter of 2017, to distribute a final dividend, an amount equivalent to 50% of the profits of the 2016 accounting period. The definite dividend will correspond to be defined by the Regular Shareholders’ Meeting, to be held during the first quarter of 2017. Compliance of the aforementioned program will be conditioned, in matter pertaining to dividends, to the profits effectively obtained, as well as on the results that forecasts that periodically the Company performs or the existence of certain circumstances, as appropriate. Dividends 89 Procedure for Dividends Payment For the payment of dividends, whether provisory or final, each shareholder will be used by DCV Registers S.A. for all and in order to avoid their unproper collection, Enersis dividends payments, while the shareholder doesn’t express Américas S.A. considers the modalities indicated as follows: in writing his intention to modify it and thus records a new 1. Deposit in banking checking account, whose account option. holder is the shareholder. Shareholders that don’t have a payment modality registered will be paid according to modality No. 4 mentioned above. 2. Deposit in banking savings account, whose account holder is the shareholder. In those cases which checks or bank checks are returned by mail to DCV Registers S.A., they will remain under custody 3. Send a nominative check or bank check by certified mail until the shareholders withdraw or request them. to the shareholder’s residence recorded in the Enersis Américas S.A.’s shareholders’ register; and In the case of deposits in banking checking accounts, Enersis S.A. and/or DCV Registers S.A. may request, for 4. Withdrawal of the check or bank check at the offices of security reasons, verification by the corresponding banks. DCV Registros S.A., in its capacity as Enersis Américas If the accounts indicated by the shareholders are objected, S.A’s administrator of the shareholders’ register, or in the whether in a prior verification process or for any other cause, bank or branch offices are determined for such purpose the dividend will be paid according to the modality indicated and that will be informed in the notice published in Point No. 4 mentioned above. regarding the dividends’ payment. For these purposes, checking or savings banking accounts continue to adopt in the future all necessary security can be located anywhere in the country. measures required that is required by the dividends payment On the other hand, the Company has adopted and will process, in order to safeguard both the shareholders as well It’s worth to highlight that payment modality chosen by as Enersis Américas S.A. Dividends Policy 2015 General Aspects The Board of Directors of the Company, in session held on February 26, 2015, approved the following Dividends Policy and the procedures for payment of Enersis S.A. dividends, for the 2015 accounting period. 90 2015 Annual Report Enersis Dividends Policy The Board of Directors’ intention is to distribute an Compliance of the aforementioned program will be interim dividend against 2015 profits, of up to 15% of conditioned, in matter pertaining to dividends, to the profits profits accounted as of September 30, 2015, as shown in effectively obtained, as well as on the results that forecasts the financial statements of Enersis S.A. at that date, and that periodically the Company performs or the existence of payment will be carry out in January 2016. certain circumstances, as appropriate. The Board of Directors will propose to the Ordinary Shareholders’ Meeting, to be held during the first quarter of 2016, to distribute a final dividend, an amount equivalent to 50% of the profits of the 2015 accounting period. The definite dividend will correspond to be defined by the aforementioned Regular Shareholders’ Meeting. Distributable Income of 2015 The distributable income of 2015 is detailed below: Net Income * Distributable Income * Attributable to the controlling shareholder Millones de $ 661,587 661,587 Distributed Dividends The following char shows the dividends per share paid in the last years: N° Dividend 81 82 83 84 85 86 87 88 89 90 91 92 Type of dividend Final Interim Final Interim Final Interim Final Interim Final Interim Final Interim Closing Date Payment Date 06-05-2010 27-01-2011 12-05-2011 27-01-2012 24-05-2012 25-01-2013 10-05-2013 31-01-2014 16-05-2014 30-01-2015 25-05-2015 29-01-2016 29-04-2010 21-01-2011 06-05-2011 21-01-2012 17-05-2012 19-01-2013 04-05-2013 25-01-2014 10-05-2014 24-01-2015 18-05-2015 23-01-2016 Pesos per share 4.64323 1.57180 5.87398 1.46560 4.28410 1.21538 3.03489 1.42964 5.27719 0.83148 5.38285 1.23875 Exercise 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 Dividends 91 Investment and Financing Policies Investment and Financing Policies 93 The Ordinary Shareholders’ Meeting held on April 28, 2015 approved the Investment and Financind Policy described below. Investments Areas of Investment Enersis S.A. will perform investments, according to its bylaws, in the following areas: Contributions to invest in or create subsidiaries and affiliate Participation in the Control of Investment Areas companies whose activity is aligned, related or linked by In order to control the investment areas and pursuant to any form or type of energy, the supply of public utilities, or Enersis S.A. corporate purpose, the following procedure will whose main input is energy. be pursued whenever possible: Investments related to the acquisition, exploitation, > It will be proposed at the Ordinary Shareholders’ construction, leases, administration, trading and disposal Meetings of our subsidiaries and affiliate companies the of any class of fixed assets, whether directly or through appointment of directors related to the Enersis S.A.’s subsidiaries. stake in that company, candidates that preferably need to be directors or executives of the Company or its Other investments of all kinds are financial assets, titles or subsidiaries. securities. Maximum Investment Limits > The investment, financial and commercial policies will be proposed to the subsidiaries and affiliate companies, as well as the accounting criteria and systems to be followed. > The management of the subsidiaries and related companies will be supervised. > There will be a permanent control of debt limits, to the extent that investments or contributions implemented The maximum investment limits for each investment area or being planned will not represent an unusual variation are the following: from the parameters defined by the maximum investment limits. i) Investments in their subsidiaries of the electric system, those required for the fulfillment of the respective corporate purposes of these subsidiaries. ii) Investments in other subsidiaries, in the sum of proportions of fixed assets corresponding to the participation of Enersis S.A. on each of those subsidiaries, which may not exceed the proportion of fixed assets corresponding to the the participation of Enersis S.A.’ subsidiaries in the electricity sector subsidiaries and Enersis S.A. 94 2015 Annual Report Enersis  Investments Maximum Debt Level The maximum debt level of Enersis S.A. is 2.20 times of the total debt to equity plus minority interest ratio, based on the consolidated balance sheet. Management Atributions to Agree with Lenders Restrictions related to Dividends’ Distribution Dividends restrictions may only be agreed with creditors if those restrictions were previously approved at the shareholders’ meeting (ordinary or extraordinary). Management Atributions to Agree with Lenders on Granting of Guarantees The Company’s management may agree with creditors on granting tangible security or guarantees in accordance with the law and the corporate by-laws. Essential Assets for the Normal Operations of the Company The essencial assets for the operation of Enersis S.A. are the shares representing its contribution to its subsidiary Chilectra S.A. Investment and Financing Policies 95 Company’s Business Company’s Business 97 98 2015 Annual Report Enersis  Business Structure DISTRIBUTION Chilectra Edesur Ampla Coelce Codensa Edelnor GENERATION Endesa Chile Endesa Costanera Hidroeléctrica El Chocón Central Dock Sud Fortaleza Cachoeira CIEN* Emgesa Edegel EEPSA OTHERS BUSINESS SIEI *Transmisión Company’s Business 99  Historical Background On June 19, 1981, Compañía Chilena de Electricidad S.A. businesses are in telecommunications and information formed a new corporate structure, which gave birth to a technology, and Internet trading businesses. parent company and three subsidiaries. One of these was Compañía Chilena Metropolitana de Distribucion Electrica In 1988, and in order to successfully face the development S.A. In 1985, under the Chilean government’s privatization and growth challenges, the company was split into five policy, the process of transferring the share capital of business units, which in turn gave birth to five subsidiaries. Compañía Chilena Metropolitana de Distribucion Electrica Out of these, Chilectra and Río Maipo were responsible S.A. to the private sector begun, and ended on August for electricity; Manso de Velasco was focused on 10, 1987. In this process, the pension fund management electrical engineering and construction services, plus real- companies (AFPs), company employees, institutional estate management, Synapsis in the area of information investors and thousands of small shareholders joined technology and data processing, while Diprel focused on the Company. Its organizational structure was based on providing procurement and trading of electrical product. activities or operative functions whose results were evaluated functionally and its profitability was limited by Today Enersis is one of the largest private electricity a tariff structure as a result of the Company’s exclusive companies in Latin America, in terms of consolidated assets dedication to the electricity distribution business. and operating revenues, which has been accomplished through steady and balanced growth in its electricity In 1987, the company’s board proposed forming a division businesses: generation, transmission and distribution. The for each of the parent company’s activities. Then four development of the electricity distribution business abroad subsidiaries were created to operate as business units has been implemented jointly with its subsidiary Chilectra, with its own objectives, thus expanding the company’s a company that distributes electricity in the Metropolitan activities towards other non-regulated activities but linked Region, Chile. Its investments in electricity generation in to the main business. This division was approved at the Chile and abroad have been developed mainly through its Extraordinary Shareholders’ Meeting of November 25, subsidiary Empresa Nacional de Electricidad S.A. (Endesa 1987 thus defining its new corporate purpose. With this, Chile). Compañía Chilena Metropolitana de Distribucion Electrica S.A. became an investment holding company. In addition, the Company is present in businesses that complement its core activities through majority On August 1, 1988, as agreed at the Extraordinary shareholding in Servicios Informáticos e Inmobiliarios Shareholders’ Meeting held on April 12, 1988, one of the Limitada. This company is a consulting company in companies born from the division changed its name to matters related to information technology, computing and Enersis S.A. At the Extraordinary Shareholders’ Meeting telecommunications, together with the management, held on April 11, 2002, the company’s corporate purpose administration and full development of real estate projects. was modified, introducing telecommunications activities and the investment and management of companies whose 100 2015 Annual Report Enersis  Expansion and Development Enersis began its international expansion in 1992 when participating in different privatization processes in Latin America, thus developing a significant presence in the electricity sectors of Argentina, Brazil, Colombia and Peru. 1992 1994 > On May 15, the Company acquired a 60% shareholding > In July, Enersis paid US$176 million for the 60% and control of Central Costanera generation company, share capital of Empresa de Distribución Eléctrica de currently Endesa Costanera, in Buenos Aires, Argentina. Lima Norte S.A., Edelnor, in Peru, and also acquired > On July 30, Enersis was awarded 51% of Empresa Edechancay, another electricity distributor in that Distribuidora Sur S.A., Edesur, a company that distributes country, which was later absorbed by the former. electricity in the city of Buenos Aires, Argentina. > At the end of the year, Enersis acquired an additional 1993 1.9% of the share capital of Endesa Chile, increasing its shareholding to 17.2%. > In July, it bought the Hidroeléctrica El Chocón generation company, located in the province of Neuquén and Río 1995 Negro, Argentina. > On December 12, Enersis acquired an additional 39% in Edesur, obtaining the control of the company. > The Company also acquired the generation company Edegel in Peru. Company’s Business 101 1996 1998 > On February 15, Enersis reached a 25.28% shareholding > On April 3, Enersis again invested the Brazilian market, in Endesa Chile and, on April 15, Endesa Chile became a this time being awarded 89% and control of Companhia subsidiary of Enersis. Energética de Ceará S.A., Coelce, company distributes > Enersis also invests in the water sanitation market with electricity in the northeast region of the country, in the the acquisition of Agua Potable Lo Castillo S.A. state of Ceará for US$868 million. > On December 20, Enersis entered in the Brazilian market > On April 22, Enersis reached 100% shareholding in with the acquisition of a large portion of shares in the Aguas Cordillera, Santiago, Chile. previously called Companhia de Eletricidade do Río de > On December 28, Enersis gained control of Esval, Janeiro S.A., Cerj, a company that distributes electricity located in the Valparaiso region, through being awarded in the city of Río de Janeiro and Niteroi, Brazil. Its current 40% of the share capital of the company. name is Ampla Energía e Serviços S.A. > On December 20, the Company acquired a 99.9% shareholding in Central Hidroeléctrica de Betania S.A. 1999 E.S.P, in Colombia. 1997 > ENDESA S.A., (Spain), took control of Enersis. Through a public share offering (OPA), the multinational company ENDESA S.A. acquired an additional holding of 32% in Enersis, which, together with the 32% already acquired > On September 5, Enersis acquired for US$715 million in August 1997, resulted in a total holding of 64%. This a 78.9% shareholding in Centrais Elétricas Cachoeira transaction, completed on April 7,1999, involved an Dourada, Brazil. investment of US$1,450 million. As a result of the capital > On September 15, Enersis successfully participated increase made by Enersis in 2003, this shareholding in the capitalization of Codensa S.A. E.S.P., acquiring a reduced to the current 60.62% shareholding of 48.5% for US$1.226 million, company > On May 11, Enersis acquired 35% of Endesa Chile, which, that distributes electricity in the city of Bogotá and the in addition to the 25% already held, thus reaching 60% department of Cundinamarca, Colombia. It was also shareholding in the generation company. It therefore awarded 5.5% of Empresa Eléctrica de Bogotá. consolidated its position as one of the principal private > On September 15, it acquired a 75% shareholding, for sector electricity companies in Latin America. an amount of US$951 million, in Emgesa, a Colombian generator, and an additional 5.5% of Empresa Eléctrica de Bogotá S.A. > ENDESA S.A., (Spain), acquired 32% of Enersis. 102 2015 Annual Report Enersis 2000 2003 > As part of the Genesis Plan strategy, the subsidiaries > Enersis sold assets for US$757 million, including the Transelec, Esval, Aguas Cordillera and real estate assets Canutillar power plant and the distributor Río Maipo, were sold for US$1,400 million. both in Chile. 2001 2004 > The Company performed large investments US$364 > The Central Hidroelectrica Ralco hydroelectric power million for increasing the shareholding in Chilectra, in plant located in the BioBio Region with 690 MW capacity Chile; US$150 million in the acquisition of 10% of the began operations. share capital of Edesur, in Argentina, a percentage that was held by the company’s employees; US$132 million to increase its shareholding in Ampla, in Brazil; US$23 million to increase its shareholding by 15% in Río Maipo, 2005 in Chile, and US$1.6 million to increase its shareholding > On April 18, the subsidiary Endesa Eco was created with by 1.7% in Distrilima, in Peru. the purpose to promote and develop renewable energy 2002 projects like mini-hydro plants, wind farms, geothermal, solar and biomass power plants, and also to act as the depositary and trader of the emission reduction certificates produced by these projects. > In Brazil, Central Termoeléctrica Fortaleza in the state of > The subsidiary Endesa Brasil S.A. was formed with Ceará was awarded to the Company. The commercial all the assets held in Brazil by the Enersis Group and operation of the second phase of the electricity Endesa Internacional (now Endesa Latinoamérica): interconnection between Argentina and Brazil, CIEN, CIEN, Fortaleza, Cachoeira Dourada, Ampla, Investluz completing a transmission capacity of 2,100 MW and Coelce. between both countries, also began. Company’s Business 103 2007 > In March, the company Centrales Hidroeléctricas de Aysén S.A. (HidroAysén) was formed, with the purpose to develop and exploit the hydroelectric project in the region of Aysén, called the “Aysén Project”, which will provide 2,750 MW of new installed capacity in Chile. > In April, the first phase of the San Isidro combined-cycle thermal power plant, second unit, with a capacity of 248 MW, was made available to Economic Load Dispatch Center (CDEC-SIC). > In September, the merger of the Colombian generating companies, Emgesa and Betania was completed. > On October 11, ENEL S.p.A. and ACCIONA, S.A. took control of Enersis through ENDESA S.A. and Endesa Internacional, S.A. (now Endesa Latinoamérica S.A.). > During November, the Palmucho hydroelectric plant started up its commercial operations, located below the Ralco plant dam in the Upper Biobío area, supplying 32 MW of capacity to the Central Interconnected system SIC). > Canela was inaugurated on December 6, the first wind farm on the SIC. Canela is located in the village of that name in the Region of Coquimbo and contributes 18 MW to the SIC. 2006 > In February, Enersis acquired for approximately US$17 million the Termocartagena (142 MW) combined cycle power plant in Colombia, which operates with fuel oil or 2008 gas. > In March, Enersis informed the SVS about the merger of > In January, the second phase of the San Isidro Elesur and Chilectra by the absorption of the latter by the II combined-cycle thermal power plant began its former. The legal effects of this merger became effective commercial operations, with an installed capacity of 353 since April 1, 2006. MW. > In June, Edegel and Etevensa were merged, the latter > On March 24, the dual operation of Unit Nº1 of the Tal- a subsidiary of Endesa Internacional (now Endesa Tal thermal plant began operations, with an installed Latinoamérica S.A.) in Peru. capacity of 245 MW. > On September 29, Endesa Chile, ENAP, Metrogas and > In June 27, the Ojos de Agua mini-hydro plant began GNL Chile signed an agreement defining the structure of operations, contributing 9 MW of installed capacity to the liquefied natural gas (LNG) project in which Endesa the SIC. Chile participates with a 20% holding stake. 104 2015 Annual Report Enersis 2009 2010 > The companies ACCIONA, S.A. and ENEL S.p.A. > In February, the San Isidro plant increased its capacity to announced an agreement whereby ACCIONA, S.A. 399 MW; the combined cycle unit increased 22 MW of will directly and indirectly transfer to ENEL ENERGY capacity after implementing technological changes that EUROPE S.L. a 25.01% shareholding in ENDESA, S.A. allowed him to operate in a dual manner (LNG and oil). ENEL ENERGY EUROPE S.L., controlled 100% by ENEL > On May 31 in the context of the ongoing effort to provide S.p.A., will thus hold 92.06% of the share capital of its customers with excellent service, Chilectra began ENDESA, S.A. the project distribution network remote management > On June 25, the agreement between ENEL S.p.A. and (DT) implemented by CAM, a technological change that ACCIONA, S.A. came into effect whereby the ENEL will allow a qualitative leap in the registration of power Group became the controller of 92.06% of the share consumption and reducing energy losses. capital of ENDESA, S.A. > In early June Chilectra and Clínica Dávila opened the > On October 9, Endesa Chile acquired 29.3974% of largest solar Project in Chile. With a total of 264 solar its Peruvian generation subsidiary Edegel. The shares thermal collectors, installed in 740 square meters, the were acquired at market price from Generalima S.A.C., solar electric technology will allow heating more than a company which in turn is a subsidiary of Endesa 70,000 liters of sanitary water a day, using two types of Latinoamérica S.A. Endesa Chile thus now holds directly totally clean energy, uncontaminated and with savings and indirectly 62.46% of the shares of Edegel. of up to 85%. > On October 15, Enersis S.A. acquired 153,255,366 > In December 2010, Endesa Chile submitted again the shares, representing 24% of the share capital, of its environmental impact assessment (EIA) of Central Peruvian subsidiary, Edelnor, at a price of 2.72 soles Hidroeléctrica Neltume. The Company submitted the per share. This was purchased from Generalima S.A.C., environmental impact study to the Environmental a Peruvian subsidiary of Endesa Latinoamérica S.A., Assessment Service (SEA), incorporating the additional the parent company of Enersis. With this transaction, information requested by the different organisms that the direct and indirect shareholding of Enersis S.A. in participated in the evaluation process. The 490 MW Edelnor rose from 33.53% to 57.53%. installed capacity hydro power plant intends to make use of the existing hydroelectric potential in the area, specifically in the River Fuy, the natural drainage of the lake Pirihueico. > Enersis accepted the offer of the company Graña y Montero S.A.A., to acquire its entire direct and indirect shareholding in its subsidiary Compañía Americana de Multiservicios Limitada, CAM; and likewise, accepted the offer by Riverwood Capital L.P to acquire the entire direct and indirect shareholding in its subsidiary Synapsis Soluciones y Servicios IT Ltda. The price offered for CAM and its subsidiaries in Argentina, Brazil, Colombia and Peru amounted to US$20 million. In the case of Synapsis, the price offered for the company and its subsidiaries in Argentina, Brazil, Colombia and Peru amounted to US$52 million. Company’s Business 105 2011 > Four projects were submitted for environmental approval: “Optimization of Los Cóndores Hydroelectric Power Plant”, “Renaico Wind Farm”, “LAT S/E PE Renaico - S/E Bureo” and “Optimization Second Unit of Thermal Power Plant Bocamina”. The project “Optimization of Los Cóndores Hydroelectric Power Plant” has been qualified as environmentally favorable. The projects: “LTE CH Los Cóndores - S/E Ancoa”, “Hydroelectric Power Plant Neltume”, “High Tension line S/E Neltume - Pullinque”, “Renaico Wind Farm”, “LAT S/E PE Renaico - S/E Bureo” and “Optimization Second Unit of Thermal Power Plant Bocamina” are in the process of environmental approval. > In May, the Environmental Assessment Commission of the Aysen region approved the Environmental Impact Study of the HydroAysen project power plants presented on August 14, 2008. > In August, Endesa, S.A. informed, as a significant event, entering into an agreement for Endesa Latinoamérica to acquire EDP’s 7.70% stakes in Endesa’s Brazilian subsidiaries Ampla Energia e Serviços S.A. and Ampla Investimentos e Serviços S.A. for Euro 76 million and Euro 9 million, respectively. After these acquisitions, the Endesa Group will control 99.64% of the share capital of both companies. 106 2015 Annual Report Enersis 2012 > On February 29, 2012, the power plant Bocamina II began and continued with the capital increase operation. The commercial operations, which allows the compensation Board of Directors resolve postponing the Extraordinary of the hydroelectricity generation deficit present for Shareholders Meeting to take place September 13 to a the last three years and contributes with an important later date to be determined opportunely. After strictly increase in efficient low cost thermal electricity as back complying with the conditions established by Articles 15, up capacity of the Central Interconnected. 67 and Title XVI of Law 18,046 (the Board of Directors > The power plant project Punta Alcalde, has 740 MW of requested the independent valuation by IM Trust and installed capacity and will be located 13 kilometers near the Directors Committee requested the independent the city Huasco, received environmental approval from valuation of Claro y Asociados Ltda., the Directors the Ministers Committee after being rejected by the Committee issued its report and each Director gave his Environmental Assessment Commission of the Atacama opinion with respect to the proposed operation), the Region in June 2012. Extraordinary Shareholders Meeting held on December > In July, through a Significant Event submitted to the 20 ruled on the capital increase. A very large majority, Superintendence of Securities and Insurance (SVS), the almost 86% of all shareholders present with voting rights, Board of Directors of Enersis informed its decision to equivalent to 81.94% of the total shares with voting convene an Extraordinary Shareholders Meeting which rights of the Company, approved the capital increase will take place on September 13, with the purpose of of the following characteristics: 1) Maximum amount of resolving, among other matters, the capital increase of the capital increase: Ch$ 2,844,397,889,381, divided into the Company according to Endesa’s (Spain) proposal, 16,441,606,297 ordinary nominative payment shares of amounting to up to the equivalent of US$8,020 million the same series, with no preferences and no par value, in Chilean pesos, or the amount that the Extraordinary 2) Value of non-in-kind contributions to be capitalized: Shareholders Meeting determines. In early August, The total issued capital of Cono Sur, Company that will the SVS stated that the Board of Enersis must adopt concentrate the activities that are identified in the reports the actions necessary to strictly comply with the that have been made available to the shareholders and conditions established by Articles 15, 67 and Title XVI that would be contributed by Endesa to Enersis S.A., of Law 18,046 (Corporations Law), considering that will amount to Ch$ 1,724,400,000,034 corresponding to they are complementary and when applicable should 9,967,630,058 shares of Enersis S.A. at a price of Ch$ be considered simultaneously. These conditions are 173 per share, 3) Placement share price: A fixed price of related to capital increase transactions and related Ch$173 for every payment share to be issued as a result party transactions respectively. Once the indications of the capital increase. of the SVS were acknowledged, Enersis adopted them Company’s Business 107 2013 2014 > Capital Increase. With an historic result for this type > Public Tender Offer for the shares acquisition (OPA) of operation in the local market, Enersis shareholders of Coelce. On January 14th, Enersis, which until then subscribed a total of approximately $ 6,022,000, a controlled 58.87% of its subsidiary Coelce, launched a placement of 100% of the shares available for Capital voluntary OPA of all series of shares issued by Coelce Increase. at a price of R$49 per share. With this, Enersis acquired > In July, the new Malacas 185 MW power plant was 3,002,812 common shares, 8,818,006 preferred shares commissioned in Peru. The new unit of the Malacas type A and 424 preferred shares type B, equivalent to thermal power plant began operations in Piura, this pant an investment of approximately US$243million. After the is owned by the Piura Electricity Company (EEPSA) part of operation, the company obtained a 74.05% direct and the Enersis Group. This new plant required an investment indirect interest in Coelce. of US$ 105 million, and supplies additional energy to the > On March 31st, Endesa Chile, subsidiary of Enersis, System. acquired the social rights that Southern Cross held in > On November 6th the first modernised unit of Salaco Atacama Investment Holding. Thus, the group reached project in Colombia was put into operation, corresponding the total ownership of Gas Atacama, a 781MW installed to unit 2 of the run-of-the-river Darío Valencia Samper capacity natural gas power plant that operates in the plant, with an installed capacity of 50MW. This unit SING. generated 46.3GWh since it was commissioned until > Los Cóndores Project. In April, Endesa Chile subscribed midnight, December 31st. contracts for the construction of Los Cóndores 150MW > In December 2013, an Environmental Impact Statement hydroelectric power plant project, located in the Maule (EIS) was formalized, and whose purpose is to optimize region. The estimated investment reaches US$661.5 environmentally the project, replacing the originally million; it’s expected to begin commercial operations in considered seawater cooling system with a dry cooling late 2018. system with air coolers. The proposed closing of the > In April, Enersis closed a purchase agreement to acquire combined cycle will use the two existing gas turbines all the shares that Inkia Americas Holdings Limited of 123 MW each, and add a steam turbine of nearly 130 indirectly had of Generandes Perú S.A., equivalent MW. Thereby, the Taltal plant will be able to generate 370 to a 39.01% stake, whose investment amounted to MW and display efficiency gains from the current 35% to US$413million. The transaction ended in September, nearly 50%. and as a result Enersis reached 58.60% shareholding of Edegel. > SmartCity Santiago. In July, Enersis, through its subsidiary Chilectra, inaugurated the first intelligent city of Chile in Ciudad Empresarial. Energy Minister Máximo Pacheco and the CEO of Enel, Francesco Starace attended the event. > On July 31th, 2014, Enel Energy Europe S.R.L., currently Enel Latinoamérica S.R.L., controller of Endesa S.A. (92.06% share) proposed the acquisition of 100% of the share capital of Endesa Latinoamérica S.A. The transaction was completed in October 2014 and as a result Enel S.A. achieved direct control of Enersis with 60.62%. 108 2015 Annual Report Enersis 2015 > In March 2014 Enersis received the ICSARA No.1 > On April 2, 2015, the Bocamina II power plant of Endesa (Consolidated Report of Request for Clarifications, Chile received the Environmental Qualification Resolution Corrections and/or Extensions No.1) of the EIA for the (Resolución de Calificación Ambiental, RCA), approving optimisation of Bocamina II, containing the observations the “Optimization of the Thermoelectric Power Plant about relevant environmental services. In late September Bocamina, Second Unit” proyect. 2014, EIA’s Addendum No.1 including the answers to > On April 28, 2015, the Board of Directors of Enersis ICSARA No.1 entered the Environmental Assessment agreed to initiate the studies for a possible corporate Service (SEA). Regarding the injunction issued by the reorganization to divide the generation and distribution Court of Appeals of Concepción that kept the operation activities in Chile from the rest of the activities developed of the second unit paralysed since December 2013, in abroad by Enersis and its subsidiaries Endesa Chile and November 2014 the Third Chamber of the Supreme Court Chilectra. lifted the injunction, indicating that the second unit can > In July 2015, the Bocamina II power plant of Endesa operate again if two conditions are met: i) having refined Chile was ready for economic dispatch of the Operations the installation of the Bocamina I desulfuriser promised Center of the CDEC-SIC, after the operational trials in the RCA No.206/07, in the shortest possible time carried out the fist week and after obtaining the required frame; and ii) providing sufficient guarantee that it will authorizations. At the end of July, Bocamina I power plant promptly implement further specific measures for a real became available, after a major overhaul that impacted its and effective solution to the problem related to seawater operations since September 30, 2014. suction and biota entry due to this process, according to > On November 16, 2015, the initial commissioning of El the best available technologies for this effect. Quimbo power plant, a 400 MW hydro facility in Colombia took place, after five years of contruction. > On December 18, 2015 the Extraordinary Shareholders Meeting took place, where the corporate restructuring of Enersis was approved. Company’s Business 109 Investments and Financial Activities Investments and Financial Activities 111 112 2015 Annual Report Enersis  Material Investments Related to the Compay’s Investment Plan We coordinate the overall financing strategy of our subsidiaries and intercompany loans, in order to optimise debt management, in addition to the terms and conditions of our funding. Our subsidiaries develop independent capital investment plans that are funded by internally generated funds or by direct funding. One of our goals is to focus on those investments that will yield long-term benefits, such as projects to reduce energy losses. Additionally, focusing on Enersis group and seeking to provide services to all companies in the group, our goal is to reduce investment at the individual subsidiary companies in elements such as procurement systems, telecommunications and information systems. While we have studied how to finance these investments as part of the budget process of the Company, no particular financing structure has been committed and our investments will depend on market conditions at the time they need to get the cash flow. Our investment plan is flexible enough to adapt to the changing circumstances by giving different priorities to each project according to its profitability and strategic consistency. Investment priorities are currently focused on developing the works plan in Chile, Peru and Colombia. For the period between 2016 and 2019, we expect to spend $4,188 billion consolidated, in investments in the subsidiaries we control, associated with investments currently under development, the maintenance of our distribution networks, maintenance of existing generation plants, and the studies required to develop other potential generation projects. The table below shows the capital expenditures expected to carry out from 2016 to 2019 and the capital expenditures incurred by our subsidiaries in 2015, 2014 and 2013. Chile Abroad Total Investment (1) (million Ch$) 2016-2019 1,132,223 3,056,249 4,188,472 2015 (1) 309,503 1,053,058 1,362,561 2014 (1) 197,653 891,709 1,089,362 2013 (1) 128,240 646,580 774,820 (1) Capex figures represent the effective payments for each year, with the exception of future forecasts (gross figures). Investments and Financial Activities 113  Investments in 2015, 2014 and 2013 Our capital expenditures in the last three years are mainly related to the 350 MW Bocamina II and Los Cóndores (150 MW) project in Chile, the 400 MW El Quimbo project in Colombia and the maintenance of the existing installed capacity. Bocamina II began commercial operations in October 2012, suspended operations on December 2013, due to the prohibitory environmental injunction, and restarted operations in July 2015. Los Cóndores is a hydroelectric project that begun its construction in 2014 and its expected to be completed in 2018. El Quimbo project started-up on November 16, 2015. Previously, in July 2013 the “Reserva Fría” plant, a gas turbine of 183 MW, is part of the back up system of the Peruvian grid, started-up in the Talara Region. In December 2014, the optimization of Salaco proyect was completed, adding a total of 145 MW to the Comobian grid. Additionally, we also make investments for: (i) expand our distribution service to meet the growing energy demand, (ii) improve the quality of service, (iii) improve security, and (iv) decrease energy losses, mainly in Brazil. The aforementioned capital investments were financed as follows: > El Quimbo: Local and international bond issuance. > Bocamina II: Funds generated by the Company. > Los Cóndores: Funds generated by the Company. > Reserva Fría: Leasing. > Salaco: Funds generated by the Company. 114 2015 Annual Report Enersis  Projects Currently Under Development Our most important projects under development are the following: > Los Cóndores Project: 150 MW hydroelectric power plant, located in El Maule Region, whose construction begun in 2014 and its expected to be completed in 2018. Additionally, our plan is to continue expanding the distribution services, reduce energy losses and also to improve the efficiency and profitability of our distribution operations in Chile and abroad. In general terms, we expect that all the projects under development to be financed with external financing and by resources generated by each of the projects described above. Generation Our capital expenditures in generation reached $653 billion (1) in 2015, $205 billion of which were invested in Chile and $447 billion abroad. In 2014, these expenses amounted to $622 billion; $258 billion were incurred in Chile and the rest abroad. In Chile, our principal investments in 2015 were concentrated on the construction of the run-of-the-river hydroelectric power plant Los Cóndores, whose capacity is 150 MW; and to complete the works of Bocamina II (350 MW). In Colombia, our main investment in expansion was concentrated in the construction of 400 MW El Quimbo hydroelectric project. In Peru, Chile and Brazil, we continue with investments for studies and development of the projects pipeline, both hydro and thermoelectric projects. In 2015, in Argentina the Company invested in the installation in Costanera power plant of a new thermo generation unit based on four highly efficient fuel oil engines, using the credits that Endesa Costanera, Chocón and Dock Sud had with Cammesa due to Resolution 95. (1) For reclasification purposes, the invesments performed in 2015 by the transmission companies (Cemsa, CIEN, CTM and TESA) are included in the distribution business, as opposed to 2014, when these investments were included in the generation business. Investments and Financial Activities 115  Distribution During 2015 the Company made investments of $689 In AT networks, during 2015 the completion of the works billion (1), primarily to meet the consumption needs, related with the construction projects New Line 220 kV resulting from the growth of population and the entrance to the Chicureo substation, and the works related with of new customers, through investments not only related Line 110 kV Chena-Cerro Navia, particularly inside the with them, but also in capacity increases and strengthening substation Cerro Navia -Transelec, with the purpose of of the High (HT), Medium (MT) and Low Tension (MT) helping the expansion of the subestation. Likewise, its facilities of the companies. Out of this total, $90 billion also worth to mention the works related with Line 110 were incurred in Chile and $600 billion abroad. On the other Kv Florida – Ochagavía, reinforce of the section Tap Club hand, in 2014, investments reached $593 billion, resulting Hípico – San Joaquín, and also the reinforcement of Line from the growth of population due to the demographic and 110 kV Chena – Espejo; and finally, the works related clients’ growth, and also to improve the quality of service. with Line 110 kV Florida – Los Almendros, where some Out of this total, $67 billion were incurred in Chile. towers in the sector Hondonada of Quebrada de Macul In Chile, during 2015, Chilectra and subsidiaries (Colina were transfered. and Luz Andes) made investments totalling $90 billion, In MT networks, five new feeders were built: Einstein primarily related to meet the energy demand growth, Feeder (12 kV), of the S/E Recoleta, Los Cerezos quality of service, safety and information systems. Feeder (12 kV) of the S/E Macul, Tegualda Feeder (12 kV), of the S/E Santa Elena, Necochea Feeder (12 kV), In the period 2015, the growth of transforming capacity of the S/E San José and Antuco Feeder, of the S/E of the substations Bicentenario and Lo Boza stands Santa Raquel. While for large customers’ supply, the out. With these projects, the total transformation cCompany commissioned Luna 2 and Luna 3 Feeders capacity increased by 37.4 MVA. On the other hand, the (23 kV) of the S/E Chacabuco for the customer Google, interconnection 220/110 kV capacity increases became Visviri and Helsby Feeders (12 kV), of the S/E Andes effective in the S/E Chena, in 400 MVA, doubling for the customer Mall Plaza Los Domínicos, Santa Clara its previous capacity. It’s also worth to highlight the Feeder (12 kV), of the S/E Recoleta for the customers construction of the new S/E Chicureo, whose purpose is Claro and Citypark. Also there were progresses in the to strengthen the capacity in the north area of Santiago. construction of other three feeders to be commissioned These works commissioned in the first half of 2015. during 2016. (1) For reclasification purposes, the invesments performed in 2015 by the transmission companies (Cemsa, CIEN, CTM and TESA) are included in the distribution business, as opposed to 2014, when these investments were included in the generation business. 116 2015 Annual Report Enersis Finally, investments continued to increase MT network automation in Chilectra S.A., adding more than 150 new equipments to the telecontrol of the Medium Tension Network during 2015, reaching a total of 700 operating units from the Operations Center of the System. In parallel, the first phase of a SCADA Financial Activities Platform was implemented and dedicated for Financial activities of the Enersis group have always been Medium Tension, which was denominated by the an important and a priority. The efforts have been carried acronym STM, “Telecontrol of the MT System” and out to improve the financial profile of both Enersis and its it was also developed an engineering to perform a subsidiaries, issuing equity and debt with the best existing Telecommunications propietor DMR (Digital Mobile Radio) market conditions. focused on coverage and availability of communication links between MT equipments and the Control Center Among the most relevant financial activities in the history of expansion. Enersis, the following are worth to mention: In Argentina, our subsidiary Edesur, performed Between 1988 and 1992 Enersis stock began trading on the investments of nearly ARS$145 billion, mainly related local stock exchanges and on October 20, 1993, in the New with service quality recovery and the guard of public York Stock Exchange (NYSE), under ADSs, whose account safety. During 2015, the start-up of electric infrastructure name is ENI. projects have grown, most of which were financed by the National State through the “Works for Consolidation In February 1996, Enersis made a second equity issuance and Expansion of Electricity Distribution Fund (FOCEDE)”, in the local and international markets. In addition, the which resulted in the largest investments of the Company Company performed a bond issuance in the United in this area in the last years. States for a total of US$800 million, with maturities in 2006, 2016 and 2026. In Brasil, total investments reached $248 billion reais. In particular, Ampla performed investments for a total In February 1998, Enersis once again increased its capital and of $158 billion reais, mainly focused on energy losses performed a bond issuance of US$ 200 million. reduction, quality of the distribution network and connections for new customers. In the case of Coelce, In 2000, Enersis conducted a new capital Increase of investments totalled $89 billion reais, mainly in network approximately US$525 million. and connection projects for the incorporation of new customers. Additionally, the investments needed to On December 17, 2001 Enerssi stocks began trading in the endure the sustained demand growth of the State of Latin American Stock Exchange in the Madrid Stock Exchange Ceará in the last months. (LATIBEX) under the account name XENI. In Colombia, total investments amounted to COP$108 Between June and December 2003, Enersis performed billion in projects oriented to expansion to serve new another Capital Increase, which allowed increasing the equity customers and satisfy the entire demand growth in base of the Company in more than US$ 2 billion. the different tensions of the distribution network. Investments made through Codensa were mainly In 2012 Enersis carried out financial transactions in the focused on connections for new customers and network foreign subsidiaries, for refinancing and new financing to improve quality of service. and hedging transactions, for a total amount of US$ 1,376 million, $117 million of which came from Argentina, US$ In Perú, Edelnor performed investments for a total of $98 533 million from Brazil, US$ 623 million from Colombia billion soles mainly focused mainly in satisfying demand and US$ 104 million from Peru. growth, seeking to reinforce security of the Medium and Low Tension feeders. In March 2013 Enersis capital increase of over US$6 billion Investments and Financial Activities 117 was successfully completed, the largest one carried out (US$ 350 million) and it’s hedging (US$ 231 million). by a Chilean company. In Peru, Enersis acquired 39% of Generandes (controlling In 2014 the main financial operations were carried out in entity of Edegel) for US$413 million. Argentina, Brasil, Chile and Peru. In Argentina, Costanera managed to finance a loan with Mitsubishi Corporation, During 2015, new financing and hedging transactions which required torecognize the debt at market vakue amounted to US$328 million, US$43 millones of which and interests of US$ 66 million were waived, and capital took place in Brazil, US$216 million in Colombia and maturities of nearly US$ 120 million were rescheduled for US$67 million in Perú. 18 years with a 12-month grace period. In the Extraordinary Shareholders Meeting of Enersis in On the other hand, Enersis was able to buy and then December 2015, the shareholders approved the corporate capitalize certain debt that Docksud had with Endesa Latino restructuring of Enersis proposed by its controller.  The América. In Brazil, Enersis executed an OPA for the shares plan considers a series of divisions and mergers of the of Coelce. This transaction required the disbursement of companies controlled by the Group in 2016 to finally create US$ 243 million, thus obtaining 15.18% of capital, and Enersis Chile and Enersis Américas. Thus, Enersis Américas reaching 74.05% of consolidated participation. will manage the electricity generation, distribution and transmision that the Group has in Argentina, Brazil, In Chile, Endesa Chile issued a US$ 400 million Yankee Colombia and Peru. Meanwhile, Enersis Chile will control Bond, renewed hedging contracts (Cross Currency Swaps) the business generation company Endesa Chile and the for US$ 429 million and acquired the remaining el 50% electicity distribution company Chilectra in Chile. After the of GasAtacama for US$ 309 million. With the acquisition, amendments performed between 2006 and 2010 to the Endesa Chile begun to consolidate 100% of the results of local bonds, Yankee bonds and lines of credit contracts GasAtacama results, whose results weren’t consolidated under New York Law of Enersis and Endesa Chile, events before because the company was considered affiliate of default of any subsidiary don’t have effect on the parent company. Furthermore, Enersis paid the Yankee Bond companies’ debts. 118 2015 Annual Report Enersis National Finance International Finance Consolidated Enersis accounts at the end of 2015 available In 2015, Latin America was marked by a slowdown in the committed credit lines of US$ 531 million. demand for commodities, which is partially explained by the slower dynamism of the Chinese economy. Likewise, Likewise, Enersis and Endesa Chile and its subsidiaries during the year there was an excess of oil supply in in Chile and abroad, account at the end of 2015 available the international markets. In this context, copper and uncommitted credit lines of US$706 millones. oil suffered important decreases in prices, accounting During 2015, Enersis maintained available for withdrawal prices directly impacted the devaluation of the Peruvian the entire program of local bonds for UF 12.5 million, Sol, Brazilian Reais, Chilean Peso and Colombian Peso in declines of 26.1% and 35.0% respectively. This drops in program registered in the Securities Register of the relation to the US dollar. Superintendence of Securities and Insurances in February 2008. The political, economic and social situation in some countries of the region became weaker, thus impacting At the end of 2015 Commerce Effect Lines for a total local financial conditions. Such is the case of Brazil, which amount of up to US$200 million for both Enersis and in 2015 showed an institutional and political crisis, and Endesa Chile remained unused. These Commerce effect also an economic recession, prompting downgrades of its lines were registered in January 2009 in the Securities sovereign credit risk by two of the most important credit Register of the Superintendence of Securities and rating agencies, being below investment grade. Insurance. In 2015, developed economies, mainly the United States, Additionally to the already mentioned credit contracts showed a growing recovery after the financial crisis that and bonds programs, Enersis and Endesa Chile with took place at the end of the last decade. As such, the its Chilean subsidiaries ended with available cash of FED announced by mid December 2015 the first raise US$1,389 million, corresponding US$1,317 million for in interest rates in a decade in 25 basis points, then the Enersis and US$ 72 million for Endesa Chile. range remained between 0.25% and 0.50%. The latter, supported the strength of the dollar compared with other Regarding the consolidated financial debt of Enersis as of emerging currencies. December 2015, it reached US$ 4,791 million. Out of this amount, US$3,065 million corresponds to Endesa Chile Financial markets became open in the countries where consolidated debt. This debt is primarily comprised by Enersis operates, which enables its foreing subsidiaries international bonds, local bonds and bank debt. to have access to the resources needed to finance It should be noted that the consolidated cash of Enersis refinanciancing its longer term debt, thus complying with was US $ 1,875 million, therefore, the consolidated net a policy that aims to control financial risks. their projects and investments, and also to continue debt amounts to US$ 2,916 million. However, US$ 51 million are deposits in intruments for over 90 days. During 2015, a US$ 200 million Yankee bond of Endesa Chile matured. In 2016, a US$ 250 million Yankee bond of Enersis and its corresponding hedging will mature. Investments and Financial Activities 119 Main Financial Operations Argentina Peru During 2015 the liabilities of Chocón, Costanera and Edesur, Empresa Eléctrica de Piura contracted leasing for US$54 amounting to US$5.6 million were refinanced. million for the new dual turbine financing. Brazil Edegel prepayed US$32.5 million of a bank loan and refinance the balance of US$21 million through a bank loan. In addition, Ampla renegotiated local bond covenants of the 6ª, 7ª and 8ª Edegel renewed committed credit facilities with local banks, issuances and contracted BNDES financing to finance CAPEX which amounted to US$29 million. for 2014 and 2015 for US$ 120 million. Likewise, Coelce also contracted BNDES financing for CAPEX for 2014 and 2015 for Chinango refinanced a bank loan for US$28 million maturing US$ 54 million. in February 2018. Colombia Edelnor performed a corporate bond issuance corresponding to the V Bond Program for US$20 million at 4 years term. Emgesa performed different financing activities in 2015, to Also, the company renewed committed credit facilities with finance El Quimbo project and working capital needs. Among local banks, which amounted to US$64 million. them, there were a number of short-term bank loans, which in some cases were refinanced in the medium term, and the balance at the end of the year reached US$188 million. Also, the company performed debt refinancing with local banks that amounted to US$127 milion. Coverage Policy Exchange Rate Interest Rate The exchange rate hedging policy of the Group is based on The Group’s policy is to maintain levels of fixed and protected cash flows and seeks to maintain a balance between flows debt over total net debt within a band of plus or minus 10% indexed to foreign currency (US$) and the levels of assets compared to the ratio established in the annual budget. In and liabilities denominated in that currency. The goal is to case of any deviation from the budget, hedging transactions minimise flows’ exposure to risk from changes in exchange are made, based on market conditions. At the closing date rates. As part of this policy, the Enersis Group in en Chile in December, consolidated fixed debt plus protected debt in contracted forwards for US$455 million to cover the flows in relation to net bebt was 77%. different currencies coming from foreign subsidiaries. 120 2015 Annual Report Enersis Credit Risk Rating On November 9, 1994, Standard and Poor’s and Duff & Phelps rated Enersis for the first time as BBB +, that is, an investment grade company. Later, in 1996, Moody’s rated the company´s foreign currency long-term debt at Baa1. Over time, most credit ratings have changed. Currently, they are all “investment grade”, which is based on the diversified portfolio of assets, liquidity and adequate policies of debt service coverage. In summary, we highlight the following main events that took place in 2015: > On June 16, 2015, Fitch Rating confirmed the local and international currency ratings of Enersis at “BBB+”, as well as its long-term national scale reating at “AA (cl)”. The outlook is “stable”. > Likewise, on November 12, 2015, Standard & Poor’s confirmed the international rating for Enersis at “BBB+”. The credit rating of the Company was classified as “creditwatch” with and its perspectives were modified to Negative pending the execution of the corporate restructuring operation. > Afterwards, on Decemeber 15, 2015, Feller Rate ratified the local rating for the bond, stocks and negotiable instruments at “AA”, with negative outlook. > Finally, on December 23, 2014, Moody’s downgraded the corporate rating of Enersis to “Baa3” from “Baa2” with stable outlook. Ratings are supported by the Company’s diversified portfolio of assets, strong credit parameters, adequate debt structure and large liquidity. The geographic diversification of Enersis in Latin America provides natural hedging against the different regulations and weather conditions. International Ratings Local Ratings Enersis Corporate S&P BBB+ / Negative Moody’s Fitch Baa3 / Stable BBB+ / Stable Enersis Stocks Bonds Feller Rate 1° class, Level 2 AA / Negative Humphreys Fitch 1° class, Level 1 1° class, Level 1 AA / Stable AA / Stable Because of the situations that the Company is currently facing, for example the economic circumstances in Brazil and the corporate restructuring consisting on the division of generation and distribution activities in Chile, from the remaining activities developed by the Group abroad, the Credit Rating Agencies have issued reports during the first quarter 2016: > On February 3, 2016, the Credit Rating Agency S&P downgraded the credit rating of Enersis by one notch, to “BBB” from “BBB+”, and maintained the negative outlook. On February 23, S&P confirmed this rating. > Also, on March 1, 2016, Fitch Ratings downgraded the local and international credit risk rating of Enersis to “BBB” from “BBB+”, as well as the long-term national credit risk rating of the Company to “AA-(cl)” from “AA(cl)”. Perspectives are “stable”. Investments and Financial Activities 121  Property and Insurance Brands The company has registered “Enersis” brand for products, services, industrial and commercial facilities. Enersis owns some equipment and substations located in the Metropolitan Region and, as every subsidiaries of Enel, they are part of a global risk coverage programme, led by its parent company Enel, in material damage, terrorism, business interruption and legal liability. The renovation process of these insurance contracts was carried out through an international bidding, where the main leading insurance companies worldwide were invited to participate. The contracts were renovated on November 1, 2015 through October 31, 2016. 122 2015 Annual Report Enersis  Suppliers, Customers and Main Competitors > Brazil: Energisa, Cedae, Holcim, Ingredion, Cibrapel, AES Distribución, CPFL Distribución, Neoenergía Distribución, Copel Distribución, Light, Cagece, MDias Branco, Fapija, Ambev, Cearaportos, Rhodia, Peugeot, Vicunha, Romi, CSN, Electrobras Generación, Cemig Generación, AES Tiete, CPFL Generación, Duke Brasil Generación, Compel Const. Mont. Proj. Elet. Ltda., Personal Service Rec. Hum. Asses. Emp, Landis+GYR Equip. Medicao Ltda., Cam Brasil Multiservicos Ltda., Genom Geral de Engenharia e Mont. S.A., Cosampa Being Enersis a company that operates mainly in the field Projetos e Construcoes Ltda., Endicon Eng. Instalacoes of electricity generation and distribution, it has taken into e Const. Ltd., B & Q Energia Ltda., Eficaz Engenharia account, besides its own ones, the suppliers, customers e Servicos Ltd., Citeluz Servicos de Iluminacao Urba., and most relevant competitors of its main subsidiaries in Biotérmica Energia S.A., Andritz Hydro Inepar do Brasil Chile and in the other countries in Latin America where the S/A, Voith Hydro Ltda., Safira Admin. Comercializadora, Company operates: Energia Solucoes S.A., Alstom Power O & M Ltda., Alstom Brasil Energia e Transp. Ltda., Cegece, Hidroplas Accordingly, the Company established that its main suppliers, Industria e Comércio Ltd., PB Construcoes Ltda. customers and competitors are the following: > Colombia: EPM, Isagen, Gecelca, Chivor, EPSA, Caribe, > Chile: Gerdau Chile, CMPC Group, Mall Plaza Group, Emsa, CEO, Familia S.A., E.A.B. ESP, Ecopetrol S.A., CGED Group, SAESA Group, Chilquinta Group, Emel Cencosud S.A., Triple A S.A. ESP, EEPPM, Electricaribe Group, Colbún, Guacolda, AES Gener, Hidroléctrica La S.A. ESP, Dicel, Deltec S.A., Cam Colombia Multiservicios Higuera, Hidroeléctrica La Confluencia, Pacific Hydro, SAS, Consorcio Mecam, Cenercol S.A., Villa Hernández E-cl (Suez), Importadora y Exportadora Clever Ltda., y Compañía SAS, Transportes C&C, Transportes Schaffner S.A., Cam Chile S.A., Ferrovial Agroman Chile Especializados JR SAS., Alumbrado Público Bogotá, S.A., Salfa Empresa de Montajes S.A., Inerco Ingeniería San Miguel Industriales PET S.A., Telefónica Móvil de y Tecnología, Akeron –CAF Servicios Industriales Ltda., Colombia. MItsubischi Corporation, Voith Idro Ltda. > Peru: Vorantim Metais Cajamarquilla, Luz del Sur, > Argentina: Sadesa, AES, Pampa, Petrobras, YPF ENERG Cía. Minera Antamina, Chinalco, Enersur S.A., Kallpa (ex Pluspteg), Minera Lumbrera, Chevron Argentina, Generación S.A:, Electroperú, Duke Energy, Celepsa, Petroquímica Comodoro Rivadavia, Duke Energy, Corporación Celima, Filamentos Industriales S.A., Albanesi, GCBA, AYSA S.A., Coto C.I.C.S.A., , Telefónica, Corporación Lindley S.A.,Peruana de Moldeados S.A., Metrovías, Soc. Integrada de Buenos Aires UTE, Lima Airport Partners S.R.L., Coelvisac, Termoselva Prysmian Energía Cables y Sistemas, Leccentros S.A., S.R.L., Duke Energy Egenor S.E.P.A., Siemens Energy Contrucsur S.R.L., Tecnodock S.R.L, Duro Felguera Arg. Inc., Siemens S.A., Siemens S.A.C., Skanska del Perú S.A. , DF Services Masa Oper. Int. S.L., Ansaldo Energia S.A., Yikanomi Contratistas Generales SAC., Cobraperú S.P.A, Masa Argentina S.A., Reivax S.A. Automacao e S.A., Calatel Infraestructuras y Servicio, Consorcio Controle, Imc SRL - Mei SRL UTE, Enrique Félix Zippilli, Nortelec, Compañía Americana de Multiservicios, Indeco Turismo Patagonia S.A., Integratech, S.A. S.A. Investments and Financial Activities 123 Risk Factors 124 2015 Annual Report Enersis Risk Factors 125 126 2015 Annual Report Enersis The companies of the Enersis Group are exposed to certain risks that are managed through the application of identification systems, measurement, limitation of concentration and supervision. Among the main principles in the Group’s risk management policy, we highlight the following: > Comply with corporate governance standards. > Strict compliance with all the Group’s internal policies. > Each business and corporate area determines: I.   The markets in which the Company may operate based on its own knowledge and sufficient capacities to ensure effective risk management. II.  Counterparts’ criteria. III. Authorized operators. > Business and corporate areas establish their risk tolerance in a manner consistent with the defined strategy for each market where they operate. > All the businesses operations 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 needed to assure that the transactions performed in the markets are conducted in accordance with Enersis’ policies, standards, and procedures. Interest Rate Risk Interest rate variations modify the fair value of those assets and liabilities that accrue a fixed interest rate, as well as the future flows of assets and liabilities based on a variable interest rate. The objective of interest rate risk management is to reach a balance of debt structure, thus minimizing the cost of debt and reduce income statement volatility. In compliance with the current interest rate hedging policy, the portion of fixed and/or hedged debt to total net debt was 58% as of December 31, 2015. Depending on the Group’s estimates and debt structure objectives, hedge transactions are carried out by contracting derivatives that mitigate these risks. The instruments currently used are in compliance with the policy are interest- rate swaps that convert variable to fixed rates. The structure of Enersis Group’s financial debt as per fixed and protected rate, and variable rate over total net debt, after derivatives contracted, is the following: Net Position Fixed interest rate Variable interest rate Total 12-31-2015 % 58% 42% 100% 12-31-2014 % 72% 28% 100% Risk Factors 127  Exchange Rate Risk Exchange risks are mainly related to the following transactions: Commodities Risk The Enersis Group is exposed to the price fluctuation risk of some “commodities”, basically through: > Fuel purchases for electricity generation > Debt contracted by the companies of the Group > Energy trading on the local markets. denominated in currencies different than the ones their cash flows are indexed to. With the objective of reducing risks in extreme drought > Payments for the acquisition of project-related materials conditions, the Company has designed a commercial policy and payments of insurance premiums in currencies that defines sales commitment levels consistent with the other the ones their cash flows are indexed to. capacity of its generation power plants in a dry year, and the > Revenues of the companies of the Group directly linked policy includes risk-mitigation clauses in some non-regulated to currencies other than the ones their cash flows are customers’ contracts. In the case of regulated customers indexed to. subject to long-term bidding processes, certain indexation > Cash flows from foreign subsidiaries to their parents clauses are included to reduce exposure to commodities and companies in Chile exposed to exchange rate other variables. fluctuations. Considering the operational conditions that the Chilean In order to mitigate the exchange risk, the exchange rate electricity generation market faces, such as drought and hedging policy of Enersis Group is based on cash flows and commodities’ prices volatility in the international markets, seeks to maintain a balance between dollar-indexed flows the Company is constantly ensuring the convenience to and the levels of assets and liabilities denominated in that contract hedging contracts to minimize the impact of these currency. The objective is to minimize exposure of cash flows variations in prices. As of December 31, 2015 outstanding to variations in the exchange rate. swap operations were 133 thousand barrels of Brent oil. As Instruments used currently to comply with the policy are 133 thousand barrels of Brent oil for January 2015 and 350 currency swaps and exchange rate forwards. Likewise, MMBTU of Henry Hub for February 2015. of December 31, 2014 outstanding swap operations were the policy also looks to refinance the debt in the functional currency of each company. According to the operational conditions, which are constantly updated, these coverage operations may be modified, or they may include other commodities. 128 2015 Annual Report Enersis  Liquidity Risk The Group maintains a liquidity policy consisting of outstanding long term committed credit facilities and Receivable Trade Accounts temporary financial investments, for amounts sufficient to Credit risk related to accounts receivable derived from cover the forecasted needs for a period of time related to the business activities has historically been very limited, situation and expectations for the debt and capital markets. because of the short-term nature of the receivables does not allow the accumulation of significant individual The aforementioned forecasted needs include net financial amounts. This applies both to our electricity generation and debt maturities profile, that is, after financial derivatives. For distribution businesses. further details regarding the caracteristics and conditions of financial debt and financial derivatives, please see notes 19, In some countries, in the electricity generation business 21 and appendix 5. it’s possible to suspend the supplies in the event of non- payment, and in almost all the contracts, there is a contract As of December 31, 2015, the Group’s liquidity was $ termination clause for events of non-payment. Credit risk is 1,329,425 thousand Chilean pesos in cash and cash therefore monitored constantly and the maximum amounts equivalents and $ 176,364,376 thousand in commited long- exposed to non-payment are measured, although these are term credit facilities available. As of December 31, 2014, the limited. Enersis Group’s liquidity was $ 1,704,745,491 thousand in cash and cash equivalents and $ 353,263,488 thousand in In the case of the electricity distribution companies, it’s commited long-term credit facilities available. possible to suspend supplies by our companies in the Credit Risk The Enersis Group performs a detailed follow up process of its credit risk. event of non-payment by customers. This is applied in accordance with the current regulations in each country, which facilitates the evaluation and control of credit risk, which is also limited. Risk Factors 129  Financial Assets Investments of cash surpluses are performed in domestic Placements can be backed by treasury bonds of the countries and foreign first-class financial institutions (with risk rating where the operation is performed and/or by securities issued equivalent to investment grade, when its possible) with limits by first-class banks, preferring those who offer higher yields established for each entity. (always considering the outstanding investment policies). In selecting banks for investment, those that have investment Derivatives are contracted with highly solvent entities, thus rating are considered, considering the three main international all operations are contracted with investment grade entities. credit risk rating agencies (Moody’s, S&P and Fitch). 130 2015 Annual Report Enersis  Risk Measurement The Enersis Group prepares a measurement of Value at Risk of its debt positions and financial derivatives, with A financial or other crisis in any region worldwide can have a significant impact on the countries in which Enersis operates, and consequently, may adversely affect the operations as well as our liquidity. the objective of monitoring the risks undertaken by The five countries where Enersis operates are vulnerable the company, thus limiting the volatility of the income to external shocks, including financial and political events, statement. which could cause significant economic difficulties and affect their growth. If any of these economies experience The portfolio of positions included in the calculation of lower than expected economic growth or a recession, it Value at Risk comprises the dfollowing: is likely that our customers will demand less electrici- > Financial Debt > Debt hedging derivatives ty. Furthermore, some of our customers may experience difficulties paying their electric bills, possibly increasing our uncollectible accounts. Any of these situations could The calculation of Value at Risk represents the possible adversely affect our results of operations and financial variation of the portfolio of positions value described condition. above in one-quarter term with 95% confidence. For this purpose, there is a volatility study of the risk variables Financial and political crises in other parts of the world that impact the portfolio of positions value, with respect could also adversely affect our business. For example, to the Chilean Peso, including: instability in the Middle East could result in higher fuel > Libor Interesat Rate of the US Dollar. prices worldwide, which in turn could increase the cost > Different currencies in which our companies operate, of fuel for our thermal generation plants and adversely the regular local indexes of banking practice. affect the results of operations and financial condition of > Exchange rates of the different currencies considered Enersis. in the calculation. The calculation of Value at Risk is based on an extrapolation ruptive effects on the financial industry could adversely of future scenarios (one quarter) of the market value impact our ability to obtain new bank financings on the of risk variables in relation to scenarios based on real same historical terms and conditions. This could also de- observations for the same period (quarter) during a five- crease our ability to access the capital markets in the five In addition, an international financial crisis and its dis- year term. countries in which we operate as well as the international capital markets for other sources of liquidity, or increase The calculation of Value at Risk for one quarter with 95% the interest rates available to us. Reduced liquidity could, confidence is one percentile of the 5% most adverse of in turn, adversely affect our capital expenditures, our the quartelty possible variations. long-term investments and acquisitions, our growth pros- Taking into account the hyphotesis described above, Value at Risk for one quarter, of the positions commented above is Th$ 153,738,595. These values represent the potential growth of the debt and derivatives portfolio, so these values at risk are intrinsically related, among other factors, to the value of pects and our dividend policy. South American economic fluctuations are likely to affect the results from operations and financial condition of Enersis, as well as the value of our securities. the portfolio at the end of each quarter. All of Enersis’ operations are located in five South American countries. Accordingly, its consolidated Likewise, risk factors, may be extended to the following revenues may be affected by the performance of South fields: Risk Factors American economies as a whole. If local, regional, 131 or worldwide economic trends adversely affect the Governmental authorities have altered monetary, credit, economy of any of the five countries in which Enersis tariff, tax and other policies to influence the course of has investments or operations, its financial condition and the economies of Argentina, Brazil, Colombia and Peru. results from operations could be adversely affected. Despite that there won’t be any assets in Chile after the Most of the operating income of the Company is under Chilean law. Therefore, tax payment obligations generated in Chile, Brazil and Colombia, and 78% of will be in Chile and will be subject to the changes of “Spin-Off”, the company continues to be established our operating revenues in 2015 were derived from our Chilean taxation laws. operations in these countries. As a result, our financial condition and results of operations are particularly To a lesser extent, the Chilean government has also dependent on Brazilian, Chilean and Colombian economic exercised and continues to exercise a substantial influence performance. Set forth below are the GDP growths over many aspects of the private sector, which may result in 2015 and forecasts for 2016 and 2017 for these two in changes to economic or other policies. For example, in countries according to the Latin American Consensus September 2014, the Chilean government approved the Forecast published by Concensus Economics Inc, on progressive increase of the corporate income tax and a February 15, 2016. change in the tax system, which may have an additional negative effect upon non-Chilean holders of shares or > In 2015, Chilean GDP increased by 2.0% compared ADSs. Later, on February 8, 2016 the Law 20.889 was to the 1.9% growth in 2014. For 2016, Chilean GDP enacted, which provide amendments to the tax reform. growth forecast is 2.0% and 2.7% in 2017. Governmental actions in these South American countries > In 2015, Brazilian GDP decreased 3.7% compared have also involved wage, price and tariff rate controls and to the 0.1% growth in 2014. For 2016, Brazilian GDP other interventionist measures, such as expropriation forecast is a contraction of 3.1% and in 2017 a growth or nationalization. For example, Argentina froze bank of 0.6%. accounts and imposed capital restrictions in 2001, > In 2015, Colombian GDP increased by 2.9% compared nationalized the private sector pension funds in 2008, to the 4,6% growth in 2014. For 2016, Colombian GDP used its Central Bank reserves to pay down indebtedness growth forecast is 2.5% and 3.1% in 2017. maturing in 2010, expropriated Repsol’s 51% stake in YPF Future adverse developments in these economies may limited Argentine access to foreign currencies. In 2010, impair our ability to execute our strategic plans, which Colombia imposed an equity tax to finance reconstruction could adversely affect our results of operations and finan- and repair efforts related to severe flooding, which in 2012 and imposed exchange controls in 2014, which cial condition. resulted in an extraordinary tax expense accrual booked in January 2011 for taxes payable in 2011 through 2014. In addition, South American financial and securities mar- kets are, to varying degrees, influenced by economic and Changes in the policies of these governmental and market conditions in other countries. Brazilian, Chilean monetary authorities with respect to tariffs, exchange and Colombian financial and securities markets may be controls, regulations and taxation could reduce our adversely affected by events in other countries, which profitability. Inflation, devaluation, social instability and could adversely affect the value of Enersis’ securities. other political, economic or diplomatic developments, Certain South American countries have been historically characterized by frequent and occasionally drastic economic interventionist measures by governmental authorities, including expropriations, which may adversely affect business and financial results of Enersis. 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. 132 2015 Annual Report Enersis Our primary facilities include power plants, transmission covered by the outstanding contracts with insurance and distribution assets, pipelines, liquefied natural gas companies. (“LNG”) terminals and re-gasification plants, storage and chartered LNG tankers. Earthquakes, flooding, fires, and other catastrophic disasters arising from natural or accidental human causes, as well as acts of terrorism may damage our facilities. 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 We are subject to financing risks, such as those related 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. our insurance policies, which typically carry a deductible As of December 31, 2015, the consolidated debt of and are subject to per event policy maximums. Enersis reached Ch$ 3,309 billion. As a consequence of the corporate restructuring process, on December 18, As an example, on May 6, 2013, a blade of gas turbine 2015 the division of Enersis in Enersis Chile (covering the n°7 of Santa Rosa power plant of Edegel, in Peru, broke Chilean activities and) and Enersis Américas (covering up and triggered a catastrophic damage to the unit as every activity and operations abroad) was approved. a consequence of the combustion of the lubricant oil. As a result of the latter, on the accounting period 2015, The damaged turbine was classified as total loss and its the continuing company was Enersis Américas and replacement cost exceeded US$60 million in material every Chilean operation and assets were discontinued damage and loss of profits. Despite that costs were accordingly. covered by insurance contracted by Edegel, the unit was out of service for 19 months, and operations were As of December  31, 2015, the consolidated debt of delayed until December 5, 2014. Accidents such as the Enersis Américas amounted to Ch$ 2,464 billion and the latter might affect the operations, profits and cash flows debt maturity profile is the following: of the company. > Ch$ 617 billion in 2016; > Ch$ 682 billion in the period 2017 – 2018; In addition, on February  27, 2010, Chile experienced > Ch$ 373 billion in the period 2019 – 2020; and a major earthquake in the Bío-Bío region, with a > Ch$ 792 billion thereafter. magnitude of 8.8 on the Richter scale, followed by a very destructive tsunami. Our Bocamina I and Bocamina Set forth below is a breakdown by country for debt II thermal generation units, which are located near the maturing in 2016: epicenter, sustained significant damage as a result of the > Ch$ 183 billion for Chile; earthquake. > Ch$ 170 billion for Colombia; > Ch$ 135 billion for Brazil; Also, recently on September 16, 2015, Chile endured > Ch$ 98 billion for Peru; and an earthquake, with a magnitude of 8.3 on the Richter > Ch$ 31 billion for Argentina. scale, in the Coquimbo region, followed by a tsunami, which didn’t generate important damanges to any of Some of our debt agreements are subject to (1) financial Enersis’ facilities. In the distribution business, on May covenants, (2)  affirmative and negative covenants, 6, 2015 a fire damaged the halls, control room, batteries (3)  events of default, (4)  mandatory prepayments for room and ancilliary services in the substation Alonso de contractual breaches, and (5)  certain change of control Córdoba in Santiago, leaving 50,000 customers without clauses for material mergers and divestments, among energy from the eastern area of Santiago, where an other provisions. A significant portion of our financial important part of the financial and commercial activities indebtedness is subject to cross default provisions, which of the city are located. The short circuit was caused by a have varying definitions, criteria, materiality thresholds cat, and produced a devastating loss of power. This fire and applicability with respect to subsidiaries that could generated losses of US$ 5.8 million, which were mostly give rise to such a cross default. Risk Factors 133 In the event that Enersis or its subsidiaries breach any of sector remain unresolved, Enersis will roll over the these material contractual provisions, our creditors and outstanding Argentine debt to the extent we are able bondholders may demand immediate repayment, and to do so. If our creditors will not continue to roll over a significant portion of our indebtedness could become our debt when it becomes due and we are unable to due and payable. For example, as of December 31, 2014, refinance such obligations, the Company could default on March  31, 2015 and September 30, 2015 our Argentine such indebtedness. subsidiary El Chocón did not meet an interest coverage ratio test (EBITDA to interest expense) pursuant to a On the other hand, depending on the evolution of the covenant requirement under a loan agreement with economic situation in Brazil, this may become the country Standard Bank, Deutsche Bank and Itaú that matured in with highest financial risk. As of December 31, 2015, February 2016. El Chocón has experienced difficulties financial debt with third parties of Brazilian subsidiaries in meeting this covenant several times in the past and amounted to Ch$ 560 billlon. has obtained waivers from its lenders. As of the date of this Report, we are in discussions with the lenders but The Company’s inability to finance new projects or capital El Chocón has not received any waivers or acceleration expenditures or to refinance the existing debt of Enersis notices for its most recent failure to comply with the could adversely affect its results of operation and financial ratio. If the lenders decide to declare an event of default condition. and accelerate the loan. In the distribution business, Ampla has been facing different types of financial problems due to the political and economic situation in Brazil, which caused lower electricity demand, higher costs related Enersis may be unable to enter into suitable investments, alliances and acquisitions. to inflation and in the particular case of Ampla, cash On an ongoing basis, Enersis reviews the acquisition and EBITDA impairments, similar to other distribution prospects that may increase its market coverage or companies in the Brazilian market. This made Ampla to supplement our existing businesses, though there renegotiate some of its financial agreements between can be no assurance that it will be able to identify and December 2015 and January 2016, with the purpose consummate suitable acquisition transactions in the of avoiding non-complying with its obligations, among future. The acquisition and integration of independent other measures. There is an additional risk of non- companies that it does not control is generally a compliance if the economic environment in Brazil complex, costly and time-consuming process and continues deteriorating. requires significant efforts and expenditures. If the Company completes an acquisition, it could result in We may also be unable to raise the necessary funds the incurrence of substantial debt and assumption of required to finish our projects under development or unknown liabilities, the potential loss of key employees, under construction. Market conditions prevailing at the amortization expenses related to tangible assets and moment we require these funds or other unforeseen the diversion of management’s attention from other project costs can compromise our ability to finance these business concerns. In addition, any delays or difficulties projects and expenditures. encountered in connection with acquisitions and the integration of multiple operations could have a material Enersis believes that Argentina continues to be the adverse effect on our business, financial condition or country with the highest refinancing risk (nevertheless, results of operations. the recent change of the Argentinean government might prompt positive actions in the economic administration, For example, on April 22, 2014, Endesa Chile acquired thus promting better perception on country risk). As of 50% stake in Gas Atacama Holding, which meant to December 31, 2015, the third-party debt of our Argentine totally combine GasAtacama Holding and GasAtacama in subsidiaries amounted to Ch$ 70 billion. As long as the financial statements and to include these companies fundamental issues concerning the local electricity in the regular operations of the Company. 134 2015 Annual Report Enersis Because our generation business depends heavily on hydrological conditions, droughts may adversely affect our operations and profitability. > During periods of droughts, thermal power plants are used more frequently. Operational costs of thermal power plants can be significantly higher than hydroelectric power plants. Operational costs increase during these periods. Besides, depending Approximately 53% of our consolidated installed on commercial obligations, the Company may need generation capacity in 2015 was hydroelectric. to buy electricity at spot prices, with the purpose Accordingly, extreme hydrological conditions and climate of fulfilling the commitments of supply contracts, change could adversely affect our business, results of and the costs of these electricity acquisitions might operations and financial condition. In the last few years, exceed the sale price, so the Company may obtain regional hydrological conditions have been affected losses from these contracts. by two climatic phenomena (El Niño and La Niña) that > Thermal power plants require water for cooling and influence rainfall regularity and resulted in droughts. For the drought not only reduces the water capacity, but example, in Brazil, where 67% of our installed capacity is also increases the concentration of chemicals in the hydroelectric, the low hydro generation in 2014 and 2015, water used for cooling, increasing damage in the which resulted in higher thermal dispatch and spot prices, plants’ equipments, and also increses the default risk thus motivating the authority to make regulatory changes of environmental regulation. As a result, the Company to modify ceiling prices. Besides, El Niño phenomenon needs to buy water from farming areas, which also has affected hydrology conditions in Colombia since May present water scarcity. The acquisition of water might 2015, increasing the rainfall deficit and high temperatures, increase operational costs and the negociation with thus increasing prices. According to the National Oceanic local communities is also needed. and Atmospheric Administration of the Unitad States > Gas-fired thermal power plants generate emissions (NOAA), this even might last at least until the first quarter such as sulphur dioxide (SO2) and nitrogen oxide (NO). of 2016. Each El Niño event is different, and depending As such, a greter use of thermal power plants, during on the duration or intensity its different y depending on drought periods, increases the risk of increasing its duration or intensity, the social and economic effects contaminant levels. might be stronger. Peru has also experienced rain deficits, especially by the end of 2015 and the forecast is that the natural flow of the plants were Endesa Chile operates will decrease. The hydrological situation will depend on the level of the reservoirs observed by the end of April 2016. In Chile the hydrological contributions have been below historic levels, therefore affecting results. This situation not only reduces the capacity to operate the hydroelectric power plants, but also results in higher water transportation costs for the cooling of operations in the thermal power plant San Isidro. While Endesa Chile has signed agreements with the Chilean government and local farmers with regards to the use of water for hydro generation, especially during periods of low water Besides, in terms of certain weather prediction models, this drought is affecting the region where most of our hydroelectric power plants may continue to be in the future. A prolonged drought might aggravate the risks described above and thus to have an adverse effect on our business, operational results and financial condition. Governmental rules might negatively affect the business of the Company. levels, if the drought conditions remain or worsen, the Enersis is subject to extensive regulations of tariffs that company might face a stronger presion from the Chilean apply to the customers of he Company and to other government or from other third party to restrain even aspects of the business, and these regulations might more the use of water. have an adverse impact on profitability. For example, the Chilean or Brazilian governments may enforce electricity Drought also impacts the operation of thermal power rationing during droughts or during prolonged failures plants, including those that uses natural gas, oil or coal of power plants. During rationing, if the Company can’t as fuels, as follows: generate sufficient energy to comply with its contractual Risk Factors 135 obligations, it will likely may be forced to buy electricity In addition, changes in the regulatory framework in the spot market, because even a severe drought don’t are often submitted to legislators and administrative release from the contractual obligations as a force mayeur authorities in the countries in which we operate and, event. The spot price might be significantly higher than if approved, could have a material adverse impact on the costs of energy generation and may reach de level our business. For instance, in 2005 there was a change of “failure cost” set by the National Energy Commission in the water rights’ law in Chile that requires us to (CNE). The CNE updates each six months the “failure cost”, pay for unused water rights. In addition, the Chilean and represents the value that final users would pay for an government is beginning a review process of the current additional MWh under rationing conditions. If the company energy policies through an energy agenda presented doesn’t have the capacity to by sufficient electricity in the in May 2014 and updated in December 2015. The spot market to satisfy all of its contractual obligations, objective of this strategy is to improve the electricity it would have to compensate its regulated customers service for the poorer sectors, to have 70% of national for the electricity it woudn’t delivered at rationing electricity generation through NRCE and to have 100% price. Rationing periods may present in the future and of new facilities with an energy control system and consistently, thr generation subsidiaries may be forced clever administration of energy in 2050. Nevertheless, to pay regulatory penalties if these subsidiaries fail to external factors, mainly commodities prices, low energy provide the adequate service according to its contractual prices and restriction to the transmission system, obligations. At present, the Colombian government is have hindered the development of Non Conventional analyzing the implementation of rationing policies due to Renewable Energies projects and some non related the energy crisis that currently is affecting the country. companies have made available the contracts awarded Electricity generation in Colombia has been affected by in the last two offers for distribution companies. For two generation power plants, not related to each other, example, Endesa Chile registered an impairment which have been out of service due to technical problems provision of Ch$2.5 billion in December 2015, which was and that represent around 10% of the installed capacity related to the wind project Waiwen, whose capacity is of the country, together with the water reserve levels 200 MW, because Endesa Chile decided that under the being in average below 30% as a consequence of El Niño current circumstances the profitability of the project is phenomenon. Important rationing policies imposed by uncertain. the regulatory authorities in any of the countries where Enersis operates, might adversely affect our business, As an example of governmental regulations, on October operational results and financial condition. 6, 2015, the Colombian government enacted the Decree No. 1979/2015, which authorized the energy generation Governmental authorities may also delay the distribution of El Quimbostarting from October 7, 2015. On November tariff review process, or tariff adjustments determined 16, 2015, El Quimbo started up its commercial operations by governmental authorities may be insufficient to pass after completing all the required tests. Nevertheless, through our costs (as has been the case with Edesur, on December 15, 2015, the Constitutional Court of our Argentine distribution subsidiary and with Ampla Colombia declared that the decree No. 1979/2015 was and Coelce, our Brazilian distribution subsidiaries, for inconstitutional because the preventive measure issued part of 2014). Similarly, electricity regulations issued by the Administrative Court of Huila was still in force and by governmental authorities in the countries in which the reasons provided for the commissioning of the power we operate may affect the ability of our generation plant were inaccurate. As such, Emgesa had to suspend companies to collect revenues sufficient to offset their the operations of El Quimbo from midnight of Decemeber operating costs. 16, 2015. El Quimbo used all the legal resources available with the purpose to reverse this preventive measure and The inability of any company of our group to collect on January 10, 2016, at midnight, El Quimbo started up revenues sufficient to cover operating costs may affect again its commercial operation. the ability of that company to operate as a going concern and may otherwise have an adverse effect on our These changes might adversely affect the business, business, assets, financial results and operations. operational results and financial condition. 136 2015 Annual Report Enersis Our business and profitability could be adversely affected if water rights are denied or if water concessions are granted with limited duration. expire if the holder does not exercise the rights within eight years; (iii)  existing non-consumptive water rights and have not been used would expire within eight years from the date of being granted; and (iv) at the end of 2015, a new requirement was added with regards to the Approximately 54% of our installed capacity in Chile existence of an ecologic flow for current and future water is hydroelectric. The expansión of this technology rights for consumptive and non-consumptive use, which or eventually the modification of projects might be might reduce the availability of water for generation subordinated to the granting of the required water rights purposes. Ultimately, limitations for current water rights, from the State, which doesn’t ocurr in every case. Endesa the need of additional water rights or the repeal of the Chile owns water rights for the supply of water from current legal regime of water rights may have an adverse rivers and lakes near its generation facilities. In Chile, material effect in the hydroelectric development projects these rights are granted by the Chilean Water Authority and in profitability. (Dirección General de Aguas or “DGA”), in Argentina by the Argentinean State, in Colombia by the Environment, Housing and Land Development Ministry, in Peru by the National Water Authority or ANA, and in Brazil by the National Water Authority (ANA). In Colombia, water rights or water concessions are granted for 50 years, and Regulatory authorities may impose fines on our subsidiaries, which could adversely affect our results of operations and financial condition. renewables for the same period of time; nevertheless, The electricity businesses may be subject to regulatory these concessions may be revoked, for example by a fines for any breach of current regulations, including progressive decrease or water depletion. In Colombia, energy supply failures, in the five countries in which human consumption is the first priority before any other Enersis operates. In Chile, such fines may be imposed use. Something similar may ocurr in Peru, and water for a maximum of 10,000 Annual Tax Units (Unidades rights may be lost, even when concessions are agreed Tributarias Anuales or “UTA”), or Ch$ 5.4 billion using by indefinite periods of time, because of scarcity or the UTA and foreign exchange rate as of December  31, decrease in quality. Under current Chilean law, these 2015. In Peru, fines may be imposed for a maximum of water rights are: (i)  for unlimited duration, (ii)  absolute 1,400 Treasury Tax Units (Unidad Impositiva Tributaria or and unconditional property rights and (iii)  not subject to “UIT”), or Ch$  1,103  million, using the UIT and foreign further challenge. Chilean generation companies must exchange rates as of December  31, 2015. In Colombia, pay an annual license fee for unused water rights. New fines may be imposed for a maximum of 2,000 Minimum hydroelectric facilities are required to obtain water rights, Monthly Salaries (Salarios Mínimos Mensuales), or Ch$ the conditions of which may impact design, timing or 286 million using the Minimum Monthly Salary and the profitability of a project. exchange rates as of December  31, 2015. In Argentina, there is no maximum limit for relevant fines. In Brazil, In addition, Chilean Congress is currently discussing fines may be imposed for up to 2.0% of an electricity amendments to the Water Code, with the purpose of company’s revenues. prioritizing the use of water defining access to it as a human right that needs to be guaranteed by the state. This Our electricity generation subsidiaries are supervised by reform will determine that water is primarily for human their local regulatory entities and may be subject to these consumption, domestic subsistence and sanitation, both fines in cases where, in the opinion of the regulatory in the granting and the limitation of exploitation rights. entity, operational failures affecting the regular energy Under the proposal: (i)  water use concessions would supply to the system are fault of the company such be limited to thirty years, which would be extendable as when agents are not coordinated with the system with respect to water rights actually used during the operator. In addition, our subsidiaries may be required to thirty-year period, unless the Chilean Water Authority pay fines or compensate customers if those subsidiaries demonstrates that water rights have not been used are unable to deliver electricity, even if such failure is due effectively; (ii) new non-consumptive water rights would to forces outside of the subsidiaries’ control. Risk Factors 137 For example, in August 2014, the Superintendency of on cash flows from operations in those entities to repay our the Environment imposed fines on Endesa Chile for a debt. total of 8,640 UTA (approximately Ch$4.5 billion) for alleged environmental damages related to Bocamina II Dividends limits and other legal restrictions: Some of power plant. During 2015, the Chilean Superintendency our non-Chilean subsidiaries are subject to legal reserve of Electricity and Fuels imposed fines on Chilectra on requirements and other restrictions on dividend payments. five different occasions for a total of Ch$ 4,947 million, Other legal restrictions, such as foreign currency controls, mainly due to the regulatory infractions about quality and may limit the ability of our non-Chilean subsidiaries and continuity of service of the previous years and failures equity affiliates to pay dividends and make loan payments in two substations. These fines have not been paid yet, or other distributions to us. In addition, the ability of any because the Company appealed to the Electric Authority of our subsidiaries that are not wholly owned to distribute and the court of justice. Conversely, in April 2013, Edegel, cash to us may be limited by the fiduciary duties of the the generation company in Peru, was fined for $73.9 directors of such subsidiaries to their minority shareholders. million soles by the Osinergim, electricity regulatory Furthermore, some of Enersis’ subsidiaries may be authority in Peru; the reason was the lack of availability forced by local authorities, in accordance with applicable on many occasions in some of its units in 2008. Edegel regulation, to diminish or eliminate dividend payments. As paid two out of the four fines and appealed to the others, a consequence of such restrictions, our subsidiaries could, which are still in dispute. In 2015, the National Electricity under certain circumstances, be prevented from distributing Regulator Entity (ENRE) imposed fines to Edesur, the cash to Enersis. distribution company of Enersis in Argentina, for a total of Ch$ 6.7 billion due to operational technical and commercial Contractual Constraints. Distribution restrictions included in failures. To enforce the company’s payments, depends in certain credit agreements of our subsidiaries Costanera and part on the payments of the subsidiaries companies, joint El  Chocón may prevent dividends and other distributions administration companies and affiliates. to shareholders if they are not in compliance with certain In order to pay its obligations, the company dependes any type of distribution if there is an ongoing default. in part on the cash it receives from its subsidiaries and affiliates, regarding dividends, credit amortizations, interest Operating Results of Our Subsidiaries. The ability of our payments, capital reductions and other payments. subsidiaries and equity affiliates to pay dividends or make financial ratios. Generally, our credit agreements prohibit loan payments or other distributions to us is limited by their The ability of the subsidiaries and affilates to pay dividends operating results. To the extent that the cash requirements to Enersis, interest payments and credits and to provide of any of our subsidiaries exceed their available cash, the other distributions, is subject to legal limitations, such subsidiary will not be able to make cash available to Enersis, as dividends restrictions, fiduciary duties, contractual such was the case of Ampla and Enel Brasil as consequence restrictions and exchange controls that may impose in any of the political and economic situation that Brazil is facing of the countries where they operate. and specially in the distribution sector. Historically Enersis has been able to have access to the cash Any of the situations described above could adversely affect flows from the Chilean subsidiaries, but the Company has our results of operations and financial condition. not been similary able to access at all times to cash flows of the non-Chilean operating subsidiaries due to governmental regulations, strategic or economic considerations, and credit restrictions. Future operational results of the subsidiaries abroad may Foreign exchange risks may adversely affect our results and the U.S. dollar value of dividends payable to ADS holders continue to be subject to greater economic and political The currencies of South American countries in which uncertainties than what we have experienced in Chile, Enersis and its subsidiaries operat, have been subject thereby reducing the likelihood that we will be able to rely to large devaluations and appreciations against the U.S. 138 2015 Annual Report Enersis dollar and may be subject to significant fluctuations in the than U.S. dollars or Chilean pesos. future. Historically, a significant portion of our consolidated indebtedness has been denominated in U.S. dollars. For the twelve-month period ended December 31, 2015, the Although a substantial portion of our operating cash flows operating cash flows derived from all the operations (Chil is linked to U.S. dollars, we generally have been and will and Americas) were Ch$ 1,933 billion (before consolidation continue to be materially exposed to currency fluctuations adjustments) of which: of our local currencies against the U.S. dollar because of > Ch$ 490 billion, or 25%, was generated in Colombia; time lags and other limitations to peg our tariffs to the U.S. > Ch$ 266 billion, or 14%, was generated in Brazil; dollar. > Ch$ 350 billion, or 18%, was generated in Argentina; > Ch$ 277 billion, or 14%, was generated in Peru; and In countries where operating cash flows are denominated > Ch$ 550 billion, or 29%, was generated in Chile. in the local currency, the Company seeks to maintain debt in the same currency, but due to market conditions it may not be possible to do so. The most important is Argentina, Enersis in involved in litigation proceedings where most of the debt is denomitated in U.S. dollars, while revenues are mainly in Argentinenan pesos. Enersis is currently involved in various litigation proceed- ings, which could result in unfavorable decisions or financial Because of this exposure, the cash generated by our penalties against us. We will continue to be subject to fu- subsidiaries can decrease substantially when local ture litigation proceedings, which could cause material ad- currencies devalue against the U.S. dollar. Future volatility verse consequences to our business. in the exchange rate of the currencies in which we receive revenues or incur expenditures may affect our business, For example, in 2001, the inhabitants of Sibaté (part of operational results and financial condition. the Cundinamarca department in Colombia) sued Emgesa and other two non-related companies for the possible As of December 31, 2015, the amount of total consolidated contamination of the Muña dam, asking the defendants debt of Enersis was Ch$ 3,309 billion. Due to the corporate to pay COP$ 3 billion (approximately Ch$ 675 billion) restructuring process, on December 18, 2015, the division of for damages. The plaintiffs claimed the pollution was Enersis in Enersis Chile (container of the Chilean activities consequence of the pumping of polluted water from the and operations) and Enersis Américas (container of all the Bogotá River. On the other hand, Emgesa claimed not being activities and operations abroad) was approved. As a result, responsible, because the company received polluted water the closing accounting figures of 2015 considered Enersis and requested the inclusion, as additional defendants in Américas as the continuing company, and every Chilean judicial proceedings, to numerous public and private entities operations and assets were discontinued. that discharege pollutants into the river or those responsible for the environmental administration of the river basin. The As of December 31, 2015, the amount of total consolidated court originally accepted this request, but in June 2015, the debt of Enersis Américas was Ch$2,464 billion (net of decision was revoked and the new parties were excluded as currency hedging instruments). Of this amount, Ch$ 379 defendants. Emgesa appealed to this determination and the billons, or 15%, was denominated in U.S. dollars and Ch$ case is still pending. The financial situation and operational 25 billion, or 1% was denominated in Chilean pesos. As of results might have an adverse effect if Enersis doesn’t December 31, 2015, Enersis Américas’ consolidated foreign succeed in the defense of the dispute or if other demands currency-denominated indebtedness (other than U.S. dollars are filed against the Company. or Chilean pesos) included the equivalent of: > Ch$ 1,182 billion in Colombian pesos; > Ch$ 558 billion in Brazilian reais; > Ch$ 290 billion in Peruvian soles, and > Ch$ 30 billion in Argentinean pesos. These amounts total Ch$ 2,060 billion in currencies other The values of our generation subsidiaries’ long-term energy supply contracts are subject to fluctuations in the market prices of certain commodities and other factors. Risk Factors 139 Enersis has economic exposure to fluctuations in the velopment. They may also seek injunctive or other relief, market prices of certain commodities as a result of the which could have a negative impact on Enersis if they are long-term energy sales contracts into which we have successful. entered. Enersis and its subsidiaries have material obligations as selling parties under long-term fixed-price Environmental regulations for existing and future gener- electricity sales contracts. Prices in these contracts are ation capacity may become stricter, requiring increased indexed according to different commodities, the exchange capital investments. For example, Decree 13 of the Chil- rate, inflation, and the market price of electricity. Adverse ean Ministry of the Environment promulgated in January changes to these indices would reduce the rates we 2011 and published in June 2011 defined stricter emission charge under our long-term fixed-price electricity sales standards for thermoelectric plants that must be met be- contracts, which could adversely affect our business, tween 2014 and 2016 and stricter standards for new fa- results of operations and financial situation. cilities or additional capacity. This regulation also requires The controlling shareholder may exercise substantial influence over Enersis and may have a different strategic view from the minoritaries shareholders of the company 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 Superintendency of the Environment. Failure to certify the implementation of such monitoring system may re- sult in penalties and sanctions. In September 2014, the Enel beneficially owns 60.6% of Enersis’ share capital. Chilean government enacted Law 20,780 (a tax reform Our controlling shareholder has the power to determine law), which established an annual tax on stationary pow- the outcome of most material matters that require er generators, such as thermal generators, tied to their shareholders’ votes, such as the election of the majority emission of pollutants for the previous year. When this of our board members and, subject to contractual and provision of the law enters into force in 2018, it will only legal restrictions, the distribution of dividends. Enel apply to generators with a capacity of at least 50 MW. also can exercise influence over our business strategy and operations. Its interests may in some cases differ In compliance with these Chilean environmental regula- from those of the other shareholders. For example, Enel tions, all Chilean thermal plants are expected to invest to conducts its business operations in the field of renewable comply with the new regulations by installing abatement energies in South America through Enel Green Power systems to control pollutant emissions. Any delay in the S.p.A., in which we do not have an equity interest. filing may constitute a violation of the regulations, which Environmental regulations in the countries in which we operate and other factors may cause delays, impede the development of new projects or increase the costs of operations and capital expenditures. established emission limits effective on June 23, 2015 or June 23, 2016 depending on the plant’s location. 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 The operating subsidiaries are subject to environmental of equipment, materials or labor, strikes, adverse weather regulations, which, among other things, require us to per- conditions, natural disasters, civil unrest, accidents, or form environmental impact studies for future projects and other unforeseen events. Any such event could adversely obtain permits from both local and national regulators. impact our results of operations and financial condition. The approval of these environmental impact studies may take longer than planned and may be withheld by gov- As an example, to answer the concerns of the inhabitants ernmental authorities. Local communities and ethnic and living near the Neltume Lake, the Company had to environmental activists, among others, may intervene in redesign the lake discharge. As a consequence, the the approval process to delay or prevent a project’s de- Company accounted an impairment loss of Ch$2,7 140 2015 Annual Report Enersis billion in the financial statements of 2015. The original sentiments toward us, our results of operations and environmental impact study was withdrawed and there financial condition could be adversely affected. are studies to present it again. This is not related with the project of the transmission line, which continues as The development of new and existing power plants may planned. face opposition from several stakeholders, such as ethnic groups, environmental groups, land owners, farmers, local Delays or modifications of any of the proposed projects communities and political parties, among others, all of or in the laws and norms, might change or have an which may impact the sponsoring company’s reputation. interpretation in a way that may adversely affect the For example, the El Quimbo hydroelectric project in operations and plans to the companies where Enersis Colombia faced constant demands from the public that invests, which would adversely affect our business, have delayed construction and increased costs. From results of operations and financial situation. April 27, 2014 to May 27, 2014, a national agricultural strike Our business may be adversely affected by judicial decisions on environmental qualification resolutions for electricity projects in Chile. involving communities near the project blocked roads and occupied neighboring land. Additional protests during 2014 blocked the entrance to the Balseadero viaduct construction site and the reservoir basin. Furthermore, since December 2013, the Bocamina II power plant has encountered substantial opposition from local fishermen’s The amount of time necessary to obtain an environmen- unions that claim that our facility negatively affects marine tal qualification resolution for electricity generation or life and causes pollution, which resulted in the temporary transmission projects in Chile has materially increased, shutdown of the power plant. On July 1, 2015, Bocamina primarily due to judicial decisions against such projects, II restarted its operations, after the approval of the new environmental opposition, social criticism and govern- Environmental Qualification Resolution in April 2015. In ment delays. This can cast doubt on the ability of a proj- addition, between November 23, 2015 and January 7, ect to obtain such approval and increase the uncertainty 2016, a new group of fishermen interfered in the normal for investing in electricity generation and transmission operation of the power plant, illegally occupying the projects in Chile. The uncertainty is forcing companies first high voltage tower that supports the 154kV and to reassess their business strategies as the delay in the 220kV circuits that belong to Transelec S.A. and serve construction of electricity generation and transmission Bocamina II, which interrupted the energy transmission projects may result in a supply constraints over the next generated by the thermal power plant to the Chilean five or six years. If any plant within the system ceases central interconnected system (SIC). This group of people operation unexpectedly, we could experience supply demanded to get the same benefits received by the other shortages in our system, which could lead to power cuts. fishermen in the area. For Endesa Chile, the financial Any such event could adversely affect our results of oper- effects of this illegal occupation reached US$3.8 million, ations and financial condition. therefore decreasing the contribution margin between The 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 November 23, 2015 and January 7, 2016. At the level of the electricity system, this situation impacted the overall increase of procurement costs, increasing spot prices and generating an anticipated use of hydroelectric reserves, which won’t be available in the following months. Groups such as these receive international financing and may receive worldwide attention. The operation of our current thermal power plants The reputation of Enersis is the foundation of may also affect our goodwill with stakeholders, due to its relationship with key stakeholders and other emissions such as particulate matter, sulfur dioxide constituencies. If we are unable to effectively manage and nitrogen oxides, which could adversely affect the real or perceived issues that could negatively impact environment. Risk Factors 141 Damage to our reputation may exert considerable which we operate provide legal mechanisms for judicial pressure on regulators, creditors, and other stakeholders authorities to impose a collective agreement if the parties and ultimately lead to projects and operations that are unable to come to an agreement, which may increase may not be optimal, causing our share prices to drop our costs beyond what we have budgeted. and hindering our ability to attract or retain valuable employees, all of which could result in an impairment of In addition, we employ many highly specialized goodwill with stakeholders of Enersis. employees, and certain actions such as strikes, walkouts Enersis may be exposed to asbestos liability and additional expense related to asbestos Several of the facilities of Enersis have asbestos present in them. There is 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 or work stoppages by these employees, could negatively impact our operating and financial performance as well as our reputation. 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. of workers. Since 1998, Costanera has been removing The Company depends on information technology, com- asbestos detected in the plant. In total, Costanera has munication and processing systems (“IT Systems”) to removed approximately 500 tons of asbesto. On the operate our businesses, the failure of which could ad- other hand, Edegel has removed approximately 303 tons versely affect our financial condition and results of oper- of asbesto since 2013. These plans hould continue in the ations. future. In April 2015, the removal of asbestos detected in Bocamina I power plant. The Enersis Group enforces IT Systems are all vital to our generation subsidiaries’ abil- the highest international standards, more than those ity to monitor our power plants’ operations, maintain gen- required through local laws. eration and network performance, adequately generate invoices to customers, achieve operating efficiencies and The Company may incur additional costs to remediate and meet our service targets and standards. Our distribution implement our asbestos control and sanitation policy, or subsidiaries could also be affected adversely because be subject to legal actions against us, which in turn may they rely heavily on IT Systems to monitor their grids, have a material adverse effect on our business, results of billing processes for millions of customers and customer operation and financial condition. service platforms. Temporary or long-lasting operational Our business may experience adverse consequences if we are unable to reach satisfactory collective bargaining agreements with our unionized employees. 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 compa- ny’s image and its relationship with the community. In the last two years, global cyber attacks on security systems, treasury operations, and IT Systems have in- A large percentage of our employees are members of tensified. The Company is exposed to cyber-terrorist at- unions and have collective bargaining agreements that tacks aimed at damaging our assets through computer must be renewed on a regular basis. Our business, networks, cyber spying involving strategic information financial condition and results of operations could be that may be beneficial for third parties and cyber-theft of adversely affected by a failure to reach agreement with proprietary and confidential information, including infor- any labor union representing such employees or by an mation of our customers. During 2014, the Company suf- agreement with a labor union that contains terms we fered two cyber attacks perpetrated by a cyber-terrorist view as unfavorable. The laws of many of the countries in group, which impacted websites in Chile, Argentina, Bra- 142 2015 Annual Report Enersis zil, Colombia and Peru. In one case, the attack resulted to increase the reliability of the transmission grid. Any in a service interruption of 90 minutes. New attacks may such disruption or failure of transmission facilities could occur thus affecting the future. interrupt our business, which could adversely affect our Enersis relies on electricity transmission facilities that the Company does 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 results of operations and financial condition. The relative illiquidity and volatility of Chilean securities markets could adversely affect the price of our common stock and ADS. Chilean securities markets are substantially smaller and less liquid than the major securities markets in the United Enersis depends on transmission facilities owned and States. In addition, Chilean securities markets may be operated by other unaffiliated power companies to deliver affected materially by developments in other emerging the electricity we sell. This dependence exposes us to markets. The low liquidity of the Chilean market may several risks. If transmission is disrupted, or transmission impair the ability of holders of ADS to sell shares of our capacity is inadequate, we may be unable to sell and common stock withdrawn from the ADS program into the deliver our electricity. If a region’s power transmission Chilean market in the amount and at the price and time infrastructure is inadequate, our recovery of sales costs they wish to do so. Also, liquidity and the stock and ADS and profits may be insufficient. If restrictive transmission markets might be affected by numerous factors including price regulation is imposed, transmission companies exchange rate variations, depreciation or volatility of upon whom we rely may not have sufficient incentives to the securities markets and any other change that could invest in expansion of their transmission infrastructure, impact its liquidity, financial condition, solvency, results which could adversely affect our operations and financial or profitability. 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 Lawsuits against Enersis brought outside of the South American countries or complaints against us based on foreign legal concepts may be unsuccessful projects can be built relatively quickly, while new All of the Company’s assets are located outside of the transmission projects can take as long as seven years to United States. All of the directors and officers of the be built. Company reside outside of the United States and most of their assets are located outside the United States as On September 24, 2011, nearly 10 million people located in well. If any investor were to bring a lawsuit against our central Chile experienced a blackout (affecting more than directors, officers or experts in the United States, it may half of all Chileans), due to the failure of Transelec’s 220 be difficult for them to effect service of legal process kV Ancoa substation. The failure led to the disruption within the United States upon these persons, or to of two  500 kV transmission lines in the Chilean Central enforce against them, in United States or Chilean courts, Interconnected System (“SIC” in its Spanish acronym) judgments obtained in United States courts based upon and the subsequent failure of the remote recovery the civil liability provisions of the federal securities laws computer software used by the independent entity that of the United States. In addition, there is doubt as to coordinates generators, transmission companies and whether an action could be brought successfully in Chile large customers (“CDEC” in its Spanish acronym) to on the basis of liability based solely upon the civil liability operate the grid. This blackout, which lasted two hours, provisions of the United States federal securities laws. exposed weaknesses in the transmission grid and its need for expansion and technological improvements Risk Factors 143 144 2015 Annual Report Enersis Risk Factors 145 Company Restructuring Company Restructuring 147 148 2015 Annual Report Enersis The reorganization of Enersis begun in April 2015, when the Board of Directors of Enersis S.A. (Enersis) communicated its intention of analizing the arestructuring process, with the purpose of separating the electricity generation and distribution activities developed in Chile from those carried out in the other countries. The Board of Directors of Empresa Nacional de Electricidad S.A. (Endesa Chile) and Chilectra S.A. (Chilectra) agreed, also in April 2015, to begin the studies to analize the possible reorganization, which would determine the division of Endesa Chile and Chilectra respectively. The Reorganization has basically two stages: first the division of the separation of Chilean activities from the rest of the countries through the division of Endesa Chile and Chilectra, then creating two new companies (Endesa Américas S.A. and Chilectra Américas S.A.). This first stage will likewise create by a division of Enersis, a new company named Enersis Chile S.A. (Enersis Chile), changing the current name of Enersis for Enersis Américas S.A. (Enersis Américas). Subsequenty, in a second stage, these three companies with their assets located outside of Chile, will merge incorporating the two new companies in Enersis Américas S.A. The following chart shows abbreviatedly the corporate structure before and after the proposed Reorganization The purpose of the Reorganization is, from one side, to differentiate the geographic areas that currently have different drivers of growth, thus enabling them to offer a more focused attention to the problems and opportunities of each region; on the other hand, to continue simplifying the structure of Enersis in Latin America, through a reduction of the consolidation of minority participations and improving the alignment of strategic interests; and lastly, to enforce a strategy that would enable greater operational efficiencies, a stronger business growth and a differenciated policy of remuneration for shareholders. Company Restructuring 149  First Stage: The Divisions After an analysis process and works that lasted more than those of Chilectra Américas and Endesa Américas, and nine months, on December 18, 2015, the Extraordinary the liabilities related to them. Shareholders Meetings de Enersis, Endesa Chile and Chilectra agreed with the large mayority of its shareholders, the separations of the Chilean activities from those of the other countries, therefore completing the fisrt stage of the reorganization process. As such, being effective on March 1, 2016, the division of Endesa Chile and Chilectra, resulting in: (i) The creation of a new company from the division of Endesa Chile (Endesa Américas), who was assigned with the corporate participations and related other assets that Endesa Chile owns outside Chile. And (ii) a new company from the division of Chilectra (Chilectra Américas), who was assigned with the corporate holding and other related assets and Other considerations related to the Extraordinary liabilities that Chilectra owns outside Chile; Shareholders’ Meeting with regards to the Reorganization process On the other hand, each divided company keeps the entire respective business that currently the divided In compliance with Resolution nº 15443 of July 20, 2015 original company develops in Chile, including the equity of the Superintendency of Securities and Insurance, in stake comprising among others, assets, liabilities and the aforementioned meeting, shareholders of Enersis administrative authorizations that each divided company acknowledged other background information that serves as owns currently in the country. the foundation to the Reorganization considered as a whole and in the estimated terms of the future merger. As such, among other aspects, it was informed that: (a) an estimate intechange ratio of 2.8 and 5 shares of Enersis Américas for each share of Endesa Américas and Chilectra Américas respectively (which will be considered in the Merger Meeeting), (b) the conditions for the withdrawal rights with a limit of 10%, 7.72% and 0.91% of the equity of Enersis Américas, Endesa Américas and Chilectra Américas respectively, and (c) the public offer for the stock purchase of Endesa Américas from Enersis Américas at a price of Ch$ 285 pesos per share (conditioned by the success of the Merger). Likewise, as of the same effective, the division of Enersis took place, and a new company was created (Enersis Chile), which received the corporate holding, assets and liabilities of Enersis in Chile, including the participacions of the divided Chilectra and Endesa Chile. In the divided company Enersis Américas remains the corporate holdings of Enersis outside Chile, including 150 2015 Annual Report Enersis  Second Stage: The Merger Segunda etapa: La Fusión Segunda etapa: La Fusión to shareholders at the Shareholders’ Meeting held on de los accionistas en las Juntas de 18 de diciembre, en With regards to the backround information made available De acuerdo con los antecedentes puestos a disposición Según se ha anticipado, está previsto que para que la fusión As already anticipated, it’s expected that for the effectiveness produzca efectos, se sujetaría a la condición suspensiva of the merger, the withdrawal rights that eventually may December 18, in the second stage of the reorganization, una segunda fase de la reorganización, Enersis Américas de que el derecho a retiro que eventualmente ejerzan exersice the shareholders of Enersis Américas, Endesa De acuerdo con los antecedentes puestos a disposición Enersis Américas will absorb by incorporation Endesa absorbería por incorporación a Endesa Américas y los accionistas de Enersis Américas, Endesa Américas y Américas and Chilectra Américas as a result of the merger, de los accionistas en las Juntas de 18 de diciembre. en Américas and Chilectra Américas, which will dissolve Chilectra Américas, las que se disolverían sin liquidación, Chilectra Américas con motivo de la fusión, no exceda el will be subject to condition precedent, and will not exceed una segunda fase de la reorganización. Enersis Américas in every rights and without sucediéndolas en todos sus derechos y obligaciones, liquidation, succeeding 10,0%,7,72% y 0,91% del capital, respectivamente. 10.0%, 7.72% and 0.91% of equity, respectively. absorbería por incorporación a Endesa Américas y obligations, and incorporating the shareholders of Endesa incorporándose los accionistas de Endesa Américas Chilectra Américas. las que se disolverían sin liquidación. Américas and Chilectra Américas, directly as shareholders y Chilectra Américas, directamente como accionistas Una vez las nuevas sociedades queden registradas y Once the new companies are registered and begin sucediéndolas en todos sus derechos y obligaciones. of Enersis Américas according to the exchange relation de Enersis Américas según la relación de canje que cotizando en los mercados donde lo hacían las tres trading in the stock markets where the three original incorporándose los accionistas de Endesa Américas to be agreed, except those of the disidents shareholders se acuerde, salvo aquellos accionistas disidentes que sociedades originarias, se iniciará el proceso para la fusión companies did, the described merger process will begin, y Chilectra Américas. directamente como accionistas exercising their withdrawal rights in accordance with the ejerzan su derecho a retiro en conformidad a la ley. descrita, de forma que se estima que la Reordenación so its estimated that the Reorganization will be completed de Enersis Américas según la relación de canje que Law. quede completada en todas sus fases durante el segundo during the second half of 2016. se acuerde. salvo aquellos accionistas disidentes que semestre de 2016. ejerzan su derecho a retiro en conformidad a la ley, Enel SpA 100% Enel Iberoamérica >50,0% Enersis Américas Chilectra EOC 60,6% Enersis Enersis Chile Chile 99,1% 60,0% Américas Américas Chilectra Chilectra Chile Chile EOC EOC Chile Chile ARG BR COL PE Pronouncement of the Court of Appeal Pronunciamiento de la Corte de Apelaciones On March 22, 2016, the Court of Appeal of Santiago partially received the claim for illegality made by AFP Habitat against the SVS. El día 22 de marzo de 2016, la Corte de Apelaciones de Santiago acogió parcialmente el reclamo de ilegalidad interpuesto por This claim argued that the operation should have been declared as Operation Between Related Parties (OPR) by the SVS, which AFP Habitat en contra de la SVS. Dicho reclamo argumentaba que la operación debió haber sido declarada como Operación didn’t occur. The Court of Appeal determined that the first stage of the operation, meaning, the division approved by the large Entre Partes Relacionadas (OPR) por parte de la SVS, lo cual no ocurrió. La Corte de Apelaciones determinó que la primera mayority of shareholders of the companies involved at the Shareholders’ Meeting held on December 18, didn’t correspond to a parte de la operación, es decir, la división que fue aprobada por una amplia mayoría de los accionistas de las sociedades OPR, therefore the claim recourse was rejected with regards to the illegality of the division of the companies, thus confirming involucradas en la Junta de Accionistas del 18 de diciembre, no correspondía a una OPR, por lo que se rechaza el recurso de every proceeding made as of that date. Despite of what is related to the announced merger of the companies, the sentence reclamación en cuanto a declarar la ilegalidad de la división de las empresas, confirmando así todas las actuaciones realizadas established that regulation of Title XVI of the Corporates Law, which regulates “the operations with related parties for publicly hasta la fecha. Sin perjuicio de ello en lo que se refiere a la anunciada fusión de las sociedades, la sentencia establece que traded companies and their subsidiaries” and the provisions of Title IX of the same law, in respect of mergers between common en la misma deben aplicarse tanto la normativa del título XVI de la ley de sociedades anónimas, que regula “las operaciones publicly traded companies, must be applied. con partes relacionadas en las sociedades anónimas abiertas y sus filiales” como a los preceptos del título IX de la misma norma, que se refiere a fusiones entre sociedad anónimas comunes. Reorganización Societaria Grupo Enersis Company Restructuring 151 151 Electricity Industry Regulatory Framework Electricity Industry Regulatory Framework 153 154 2015 Annual Report Enersis  Description of the Industrial Sector Enersis, its subsidiaries and jointly controlled companies participate in the generation, transmission, distribution and trading of electricity in five countries, and each one of them has its own regulatory, framework, energy matrices, participating companies, and different patterns of growth and consumption. Please find below a brief summary of the main legal bodies that regulate the activity, the market structure and the most relevant aspects of the agents in each country where the company operates. Argentina Industry Structure Laws No. 15,336 of 1960 and Law No. 24,065 of 1992 govern the Argentinean electricity sector, among others. In the Electrical Wholesaler Market (MEM), there are four categories of local agents (generators, transmitters, distributors and large customers) and foreign agents (traders of generation and demand), who are authorized to buy and sell electricity and related products. Originally, the generation sector was organized on a competitive basis (marginalism), with independent generators selling energy on the spot market or MEM, or through private contracts to customers in the MEM contract market or “Wholesale Electricity Market Administrator company” (CAMMESA), through special transactions as contracts under Ruling SE No. 220/2007 and Ruling S. E. N 724/2008. However, this regime changed substantially in March 2013, when the Energy Department approved Ruling No. 95/2013, which establishes a payment scheme for generation based on average costs, forcing to deliver all energy produced to Cammesa. This new payment scheme came into force during February 2013, and was updated pursuant to Resolutions SE N° 529 and N° 482 in 2014 and 2015 respectively. Transmission operates under monopoly conditions and several companies to whom the Federal Government grants concessions comprise it. In turn, distribution operates under monopoly conditions and is serviced by companies that have also been granted concessions. Distribution companies are the sole responsibility that electricity is available to end customers within their specific concession area, regardless if the customer has a contract with the distributor or with a generator. Electricity Industry Regulatory Framework 155 In 2002, due to the economic downturn that hit the country, Emergency Law No. 25,561 was passed. The Law broke the parity with the U.S. dollar and imposed the conversion into Argentine pesos of obligations and rights assumed before in U.S. currency. This forced nominal conversion from dollars to pesos had a strong impact on the entire Argentinean Regulation of Generation Companies electrical industry. Additionally, the Government approved Regulation of generation companies has changed several regulatory measures that gradually intervened in the significantly since it began by means of Law 24,065 development of the industry. The Emergency Law has been until Ruling No. 95/2013. According to the Law, all subject to successive extensions and depending on the last generator agents of the MEM must be connected to the one, approved by Law 26,896, will be valid until December SIN (National Interconnected System) and are required 31, 2015. The conversion of the economy to pesos and the to comply with the order of dispatch to generate and devaluation of the economy forced the renegotiation of all deliver power in order to be sold in the spot market concession contracts. Specifically, in the distribution sector and the forward market (MAT). Distribution companies, and within the company we own “Empresa Distribuidora de marketers, and large customers that have signed supply Energía del Sur S.A.” (Edesur) a Memorandum of Contract contracts with private generating companies, pay the Renegotiation was signed with the Government in 2006, contract price, directly to the generator and also pay a which was subsequently ratified by Decree N°1959/2006, toll to the transmission and distribution company for its which would gradually adapt its tariff revenues in order to use. ensure business sustainability. The implementation of this agreement was paralyzed since 2008 and until 2013, as we In order to stabilize generation prices regarding the rate will later detail. paid by the customers, the market defined a seasonal price, which is the price of energy paid by dealers for No generator, distributor, large user, nor any company their purchases of electricity traded in the spot market. controlled by any of these or under its control, may be the This price is determined every six months by the owner or a majority shareholder of a transmission company Secretary of Energy after Cammesa has made their spot or its controlling companies. At the same time, transmission price projections for the period considered. To adjust for companies are forbidden to generate, distribute, buy and/or differences between this price and the actual cost of the sell electricity. Distribution companies cannot own generation generation a stabilization fund was originally created. If units. the seasonal price was lower than the cost of generation, money is withdrawn from the fund to compensate Distributors at regulated tariffs supply regulated customers, generation, if the situation is quite the opposite; money unless they have a minimum capacity demand of 30 kW. In is contributed to the fund. Since 2002 the Ministry of this case, they are considered “large customers” and are Energy in practice has kept the average seasonal price free to negotiate their prices with the generation companies. unchanged. This has created a significant shortfall in the stabilization fund, which has been covered by the On Decmeber 16, pursuant to Decree 134/2015, national Argentinean government, by means of increasing larger energy emergency was declared, to be in force until subsidies. December 31, 2017, thus instructing the Energy Ministry to elaborate and enforce acciones en Generation, Distribution Rulings passed due to the Emergency Law, had a and Transmission activities looking forward to dequate the significant impact on energy prices. Among the measures quality of service and security of supply; and instructed the implemented, Ruling SE 240/2003, which amended the National Public Administration to perform a rationing program way in which the spot price is established by decoupling in the respective organisms. the calculation of marginal operating costs, is worth noting. Ruling SE No. 240/2003 has the purpose of preventing price indexation linked to the dollar, despite the fact that the dispatch of generation is still based on the actual fuel used, the calculation of the spot price is based 156 2015 Annual Report Enersis on the absolute availability of gas to meet the demand, construction. Part of their credits for the energy they even in circumstances where many generators did use sold during the years 2008-2011 were also asigned to alternative fuels, such as diesel, due to the difficulties this new work. in the supply of natural gas. The value of water is not considered if its opportunity cost is higher than the cost In 2012, as part of the agreements reached with the of natural gas generation. The ruling also sets a limit to government to allow the development of operations of our the spot price of 120 Ar$/MWh, which is still valid. Actual subsidiary signed an agreement for the implementation variable costs of thermal units that burn liquid fuels are of an investment plan in units of Central Costanera in paid by CAMMESA through a mechanism called Transient order to optimize the reliability and availability of such overruns Dispatch (STD). equipment, for a total of U.S. $ 304 million, within a Moreover, based on the provisions of the Emergency payment of obligations of the maintenance contract Law, the capacity payment was reduced from 10 USD (Long-Term Service Agreement-LTSA) of the combined period of 7 years. The agreement also provides for the to 10 pesos per MW-hrp (hrp: Remuneration hours of cycles of the plant. power). Subsequently, the power guarantee was slightly increased to 12 pesos, about 1/3 of the amount paid Subsequently, Ruling S. E. No. 95/2013 leaves the before the 2002 crisis. marginality price system, ushering in a mechanism for the recognition of average costs. The ruling recognizes the In December 2004, the Secretary of Energy approved compensation of fixed, variable costs and an additional the Act of Accession for the Rehabilitation of the remuneration. Fixed costs are paid (in $ / MW- hrp) in wholesale electricity market by Ruling 1427/2004. terms of technology, scale and Available Power. It is also The Act was signed by most of the generating units, subject to the achievement of set availability goal. As including generating companies owned by Enersis. for the variable, operating and maintenance costs based Under this ruling, the Secretariat established a trust on the energy generated (in $ / MWh) are remunerated fund called FONINVEMEM, where private generators depending on the fuel used and the technology itself contributed part of their credits for energy sold during (the generators do not have fuel cost as it is provided the years 2004 to 2007 for the construction of two new CAMMESA). Finally, the additional compensation is combined cycle plants. In addition to this new capability, calculated based on the total power generated (in $/ in 2010 the generating companies, in which Enersis MWh), considering the technology and scale of the participates along with other companies, took part in generator. Part of that income is accumulated in a fund to the creation of another trust fund for the construction of be used to finance investments in new infrastructure in another combined cycle plant, which is currently under the electricity sector. Electricity Industry Regulatory Framework 157 The Resolution impacts generators, co-generators and production incentives ad operational efficiency for thermal self-generators, except plants which became operational power plants was established. Additional remuneration since 2005, nuclear power plants and Binational increased 26% for thermal power plants and 10% for hydroelectric generation; Centralized and reserves the medium size hydroelectric power plants. Charges for business management and delivery of fuels in CAMMESA non-recurring maintenances of thermal power plants and suspended bilateral energy contract signing between increased 17% and the same concept was created for the generators and MEM agents, the latter shall acquire hydroelectric power plants and was defined in 8 $/MWh. their power demands from CAMMESA. Resolution SE Finally, a new charge was created, which consisted on N° 529/2014 mainly updated the values established in 15.8 $/MWh for thermal power plants and 6.3 $/MWh for Resolution SE N° 95 and incorporates the remuneration hydroelectric power plants, for the purpose of financing for non-recurring maintenance for thermal power plants. investments, which will be enforced from February 2015 through December 2018 for those generators that On May 20th, 2014, the Energy Secretariat published participate in the projects only. The new generation will Resolution No. 529, which updates the remuneration have an additional remuneration of 50% of the direct of generators that had been set in February 2013 by additional remuneration according to the technology for Resolution S.E. No.95. The decision is retroactive to a period of ten years. The exception also applies to the February 2014. The fixed costs remuneration increased payment of variable collection made by hydroelectric by 28% for combined cycles and large hydroelectric power plants for energy transportation and determines plants and 64% for medium size hydroelectric plants. the remuneration for wind farms, solar, and biomass/ Variable costs were adjunted in 23%, with the exception biogas and internal combustion engines. This resolution of the variable charge for electric transportation to is retroactive from February 2015. the hydroelectric power plants and a new scheme of 158 2015 Annual Report Enersis Regulation of Distribution Companies Companies that obtain concessions carry out the implemented by the ENRE. On a semi-annual adjustment distribution activity. Distribution companies must supply mechanism based on rates of evolution of an ad-hoc all the demand for electricity in their area exclusive inflation index called the Cost Monitoring Mechanism at prices (rates) and conditions established in the (MMC). The first update due to inflation occurred in 2008, regulation. Concession agreements include penalties but from that year is no longer officially recognized. for non-delivery. The concessions were granted for But the Argentinean Government has created various distribution sales, and retail distribution. The concession regulatory alternatives that have allowed distribution periods are divided into “management periods” that companies to continue providing electricity service. allow the dealership to leave the concession from time to time. One such alternative has been called the Program for the Rational Use of Electric Energy or PUREE. This Since 2011, there are two electricity distribution areas program was created in 2004 by the Secretary of Energy, subject to federal concessions. The concessionaires are establishing bonds and penalties to customers depending Edesur and Edenor, located in the city of Buenos Aires on the level of energy savings based on reference of and Greater Buenos Aires. Until 2011 Edelap was also consumption. The net difference between bonds and under federal jurisdiction. penalties were originally deposited in the Stabilization Fund of the MEM, but this was later amended by request The majority of the distribution companies renegotiated from Edesur and Edenor, so that distribution companies their contracts in 2005 and 2006, although the rates could use these resources to compensate for cost were increased partially and temporarily, the Full Tariff variations in not recognized costs increases (MMC). Review (RTI) of the distribution companies with national Thus, on May 7, 2013, the Energy Secretariat passed jurisdiction is still pending. ruling 250/2013, which determines the MMC amounts receivable until February 2013 to compensate with the Thus, regarding Edesur, in 2006, the distribution debts corresponding to the PUREE program and other company signed a “Memorandum of Agreement for debts that Edesur accumulates in the system. In the the renegotiation of the Concession Agreement.” This development of this important ruling on November 6, agreement established, among several other conditions, the Ministry of Energy published Note 6852 authorizing a transitional rate system which included an increase of Edesur and Edenor to conduct the compensation of the 28 percent of VAD, with monthly updates; a system of MMC with debts arising from the PUREE program for the quality of service and Tariff Review Process (RTI) to be period March to September 2013. Electricity Industry Regulatory Framework 159 During 2014, through Energy Secretariat (S.E.) Note No. Mercado Mayorista Eléctrico S.A. (CAMMESA) with funds 4012 and National Electricity Regulating Entity (ENRE) from the National State; (ii) considers from February 1, Note No.112606, MMC-PUREE compensation was 2015 the PUREE funds as part of revenues of Edesur, also again authorised for the period October 2013 to March in account of RTI; (iii) reiterates the acknowledgement 2014. Furthermore, by S.E. Notes No.486 and No.1136, and compensation procedure of certain mayor costs MMC-PUREE compensation was authorised for the incurred when delivering the energy distribution service period April to August 2014 and then for the period of Resolution SE N° 250/2013 until January 31, 2015; September to December 2014. The accounting effects and (iv) instructs CAMMESA to issue sales liquidations of said compensations positively affect the financial with maturities to be defined (LVFVD) for the amounts results of the Company. At the same time, additional defined by E.N.R.E. in relation to higher salary costs charges for the customers’ tariffs were approves with the of the Company originated pursuant to Resolution N° purpose of financing expansion investments and quality 836/2014 of the Labor Secretary. Additionally, considers of the distribution companies. As such, in November the payment of remaining balances in favor of Mercado 2012, Resolution ENRE 347 was approved, therefore Eléctrico Mayorista (MEM) through a payment plan to be authorizing the application of this charge diferenciated by defined. customer to the future RTI account. The application of the charge means additional annual revenues for Edesur Subsequently, through Note SE N° 1208, the Energy of 437 million of Argentinean pesos, thus representing a Secretary instructed CAMMESA the calculation method 40% growth of VAD and 20% in tariffs. for the debt that EDESUR accounts with MEM, for the On March 13, 2015 Resolution SE N° 32/2015 was 31, 2015, and its compensation with the credits that arises published in the Official Gazzette, which enabled the from the application of the Cost Monitoring Mechanism accounting recognition of revenues for ARS$2,339 million. (MMC). Due to the latter, during the first half of 2015, net Among the most important items, this resolution: (i) financial revenues for $628.6 million were recognized. economic transactions of energy accrued as of January approves a transitory increase of the revenues of Edesur from February 1, 2015 for the exclusive purpose of energy Although Resolution SE N° 32/2015 represents a first step payment acquired in the energy market, salaries and goods towards the economic improvement of the Company’s and services provisions; this increase, in account of the situation, it foresees that investments will continue being Integral Tariff Review (RTI) whose performance date is financed through indebtedness with CAMMESA, and its not defined, results from the difference of a theoric tariff still pending to solve the mechanisms that allow the chart and the existing tariff chart for each user category, payment of the remaining balances in favor of the MEM, according to the calculations made by the E.N.R.E., and as well as the revenues updates to include increases of will not be transfered to tariffs if its not covered through operating costs. Tariffs, for its part, remain frozen since transfers made by the Compañía Administradora del 2008. 160 2015 Annual Report Enersis Regulation of Transmission Transmission’s design was based on the general concept business is related to economies of scale that do not allow and principles of Law 24,065, adapting the activity to general competitiveness; it’s therefore a monopoly and is subject to criteria contained in the concession granted to Transener S.A., considerable regulation. by Decree 2,473/92. For technological reasons, transmission Environmental Regulation Electrical installations are subject to environmental Gazzette, pursuant to the amended current Law N° laws and federal and local regulations, including Law 26,190. The new regulation postpones for 12/31/2017 the No. 24,051, or Hazardous Waste Act and its related goal to reach 8% of participation in national demand with regulations. generation with renewable sources and defines that the second stage to reach 20% of participation in relation Certain obligations to report and monitor certain to 2025, setting intermediate objectives of 12%, 16% emissions standards are imposed on the electricity sector and 18% by the end of the years 2019, 2021 and 2023, and, Failure to comply with these requirements entitles respectively. This Law creates a Fiduciary Fund (FODER) the government to impose penalties, such as suspension to finance works, grants tax benefits to renewable of operations that in the case of public services may energy projects and establishes that there won’t apply result in the cancellation of concessions. any specific taxation, nor national, province or municipal Law No. 26,190, enacted in 2007, describes the use of Users (>300 Kw) should comply individually with the renewable sources for electricity production as a national objectives of participation of renewables, and established interest and sets a goal of an 8% market share for that the price of these contracts can’t be higher than renewable energy within a period of 10 years. 113 US$/MWh, and establishes penalties to those who royalties until 12/31/2025. Customers ranked as Mayor doesn’t fulfill the objectives. The regulation of the law is On October 21, 2015 the new Law 27,191 of Renewables pending. Energies in Argentina was published in the Official Electricity Industry Regulatory Framework 161  Brazil Structure of the Industry The Brazilian electricity industry is organized in a The transmission works under monopoly conditions. The large interconnected power system, the (National Brazilian government defines tariffs for the transmission Interconnected System), comprising most of the regions companies. The transmission charge is fixed and of Brazil, and several other smaller isolated systems. transmission revenues do not depend on the amount of The generation, transmission, distribution and trading electricity transmitted. activities are legally separated in Brazil. Distribution is a public utility that also works under Regulators of the industry are the Federal Government conditions of monopoly and is provided by companies that through the Ministry of Mines and Energy (MME) and the in turn have been awarded concessions. The distributors National Electric Energy Agency (ANEEL). in the Brazilian system are not entitled to: (i) develop activities related to the generation or transmission of According to Law No. 10,848 of 2004, wholesale electricity electricity; (ii) sell electricity to unregulated customers, market as a tool for spot price definition is residual. except those within its concession area and under the Instead, the wholesale price is based on average prices same conditions and rates applicable to their captive of bids, independent bidding processes exist for existing customers of the Regulated Market; (iii) maintain energy and new energy. The latter provides for long term direct or indirect equity interest in any other company, contracts in the new generation projects, which should corporation or partnership; or (iv) develop activities that cover anticipated increases in demand by distributors. are unrelated to their respective concessions, except Tenders of old energy considered shorter-term contracts those permitted by law or in the relevant concession and seek to cover the needs of the distribution arising from agreement. Generators are not allowed to have equity the expiration of previous contracts. Each bidding process interest in excess of 10 percent in distribution companies. is coordinated centrally, the authority defines maximum prices and as a result, distributors’ contracts are signed The unregulated market does not include the sale where all participants in the process purchase pro rata from of electricity between generation concessionaires, each one of the offering generators. The price at which the independent producers, self-producers, traders of transactions are settled on the spot market is called the electricity, electricity importers, consumers and Dispute Settlement price - PLD - which takes into account unregulated special customers. It also includes existing the curve of risk aversion of the agents. contracts under the old regulatory framework between 162 2015 Annual Report Enersis generators and distributors, until they expire, at which The Brazilian system is coordinated by the Brazilian time the new contracts must comply with the new Electric System Operator (ONS) and is divided into four regulatory framework. According to the specifications laid sub-systems: Southeast/Central-West, South, North and down in Law 9.427/96, unregulated consumers in Brazil Northeast. In addition to the Brazilian system there are are those that: (i) demand a capacity of at least 3,000 kW also some isolated systems, namely those systems that and choose to contract the power supply directly with are not part of the Brazilian system and are usually located generators or distributors; or (ii) require a capacity in the in the northern and northeastern regions of Brazil, and range of 500 to 3,000 kW and choose to contract the whose only source of electricity are coal or oil thermal power supply directly with generators or distributors. power plants. Regulation of generation companies Generation Agents are public generation concessionaires, contracts are signed, where all distributors taking part in IPP or self-producers, as well as the trading Agents can the process purchase pro rata from each of the offering sell electricity within two contracting environments. generators. One is the Regulated Contracting Environment (ACR), where those distribution companies operate, in which Decree 5.163/2004 establishes that the selling agents the purchase of energy should be conducted under a should ensure 100% physical coverage for their energy bidding process coordinated by ANEEL; and the other, and power contracts. This coverage may be constituted called Free Contracting Environment (ACL), in which the through a physical collateral of its own generation plants conditions for the purchase of energy are traded directly or any other plant, in this case, through an electricity between suppliers and their customers. Regardless of or power purchase agreement. Among other things, ACR or ACL, generator sales contracts are registered Regulation ruling 109/2004 ANEEL specifies that when in the Chamber of Electric Energy Commercialization these limits are not met, agents are subject to financial (CCEE) and are part of the basis for the recognition penalties. and determination of adjustments for differences in the short-term market. Finally, regarding generation activity, on September 11, 2012, the Government approved the Provisional Measure According to the market regulation, 100% of the energy 579 (subsequently converted into Law No. 12,783, of demand from distributors must be met by means of long- January 11, 2013), which sets the conditions for the term contracts in the current regulated environment. renewal of the power sector concessions which will Thus, the regulated price purchase for the tariffs definition expire between 2015 and 2017 and the reduction of taxes for final users is based on average bidding prices, thus on electricity rates. Provisional Measure was adopted independent bidding processes exist for “new energy” to reduce the final price of the average electric rate by and “existing energy”. 20% and boost economic activity in Brazil. The measure does not directly affect any of the concessions of Enersis The new biddings of energy contemplate long-term subsidiaries in Brazil. contracts (20 to 25 years for thermal plants and 30 for hydroelectric power plants) in which new generation Due to the fact that some generators did not renew the projects should cover increases in demand anticipated by concessions and also because of other factors (such the distributors. Biddings of old energy are considered as delays in construction of power plants, low hydrology, shorter contracts and seek to cover the needs of the etc.), during 2013 and 2014 distribution companies have distributors arising from the expiration of previous suffered an imbalance between regulated demand contracts, so that energy can be sold at lower prices. Each and energy supply, so they have been involuntarily bidding process is coordinated centrally, the authority exposed to spot market price to cover their energy defines maximum prices and as a result, distribution, needs. Electricity Industry Regulatory Framework 163 In 2014, to cover energy overcost, the government has generators that have liminar judicial decisions that limit created the ACR account, through bank loans to be paid its risk and transfer part of the cost to the consumers. within two years through the fee. Until December 31th, 2014 distributors used approximately R$18 billion from With regards to the energy biddings in the regulated the ACR account; however, this was not enough to cover scheme, with the objective of recompose the energy the entire deficit, which will have to be recovered in the offer, until now there have been six energy biddings tariff through the mechanisms of the Emergency and processes assigned in Brazil: Support Programme to Concessionaires of Public Service > 1 bidding A-1: 1.954 MW-medium, assigned to Hydro Electricity Distribution (CVA). (94%), Biomass (4%) and Gas (2%); from 1 to 3 years of energy supply. On November 25th, 2014 ANEEL approved the new limits > 4 biddings A-3: for the Differences Liquidation Prices (LDP) for 2015. The > 97 MW-medium, assigned to Wind (30%) and limits will be changed as follows: decrease of R$823/ Biomass (70%), at an average price of 200 R$/MWh; MWh to R$388/MWh for the maximum and increase of > 233 MW- medium, assigned to Solar, at an average R$16/MWh R$30/MWh for the minimum. The decision price of 301.8 R$/MWh; was the result of a broad debate, which began with > 314.3 MW- medium, assigned to Wind (72%), Hydro Public Consultation No.09/2014 and later Public Hearing (15%), Gas (7%) and Biomass (6%), at an average No.54/2014. price of 189 R$/MWh. > 508 MW- medium, assigned to Wind (52%) and Solar The main effect of the new limit is to reduce the (48%), at an average price of 249 R$/MWh. financial impact to distributors of possible future risks of > 1 bidding A-5, with 1.160 MW- medium, assigned contractual exposure to the energy spot market, which to Gas (73%), Hydro (20%) and Biomass (7%) at an in 2014 was at its maximum value for most of the year. average price of 259.2 R$/MWh. From the point of view of generation the new maximum price also results in risk mitigation for unrecoverable Additionally, there was a Bidding for the Concessions economic and financial exposure, when production is Contracting of Hydroelectric Power Plants through the below contractual values. On the other hand, with the quota regime, in which the seller assigns its firm energy lowering of the ceiling, the ability to sell free energy at (3.223 MW-medium) and power (6.061 MW) for Annual higher prices is reduced. Generators may now divide their Revenue of the Generation Operation. free energy amongst the months of the year (seasonal adjustment) so as to be able to boost their revenues by putting more power in the months where higher prices are expected. Annually, Aneel ratifies, through a resolution, the minimum and maximum of PLD, with which for 2016 these values are R$30.25/MWh and R$422.56/MWh, respectively. These PLDs consider the cost estimation of the mega-hydroelectric power plant Itaipú, which will have in 2016 a tariff of 25.78 USD/kW. Looking for a solution to the impacts caused by the drought, in November 2015 the ANEEL approved the conditions for the “renegociation” of hydrology risk with the generation agents that participate in the Mechanism of Energy Reasignation (MRE) which was pending until then. Nonetheless, the approval of the Provisoty Measure from the Senate is still pending. Currently, there are many 164 2015 Annual Report Enersis Regulation of Distribution Companies In the regulated market, distribution companies purchase and the market conditions. By adjusting distribution electricity through biddings regulated by ANEEL and tariffs ANEEL divides the Annual Reference Value, that organized by the CCEE. Distributors must purchase is, the costs of distribution companies in: (i) costs not electricity in public biddings. The government also has the manageable by distributors, also called “Parcel A”, and (ii) right to call for special biddings for renewable electricity costs manageable by distributors or “Parcel B”, the latter (biomass, mini hydro, solar and wind farms). ANEEL and corresponding to what is known as Distribution Added CCEE conduct annual biddings. The contracting system Value (VAD). is multilateral, with generating companies that sign contracts with all distributors who call for the biddings. The regular tariff revision takes into consideration the whole rate setting structure of the company, including The Concessions Law establishes three types the costs of providing services, the costs of purchasing or adjustment of final consumer rates: the Rate power and the return for the investor. Under their Repositioning Index (IRT), representing an annual concession contracts, Coelce and Ampla are subject to adjustment for inflation; the Annual rate Review (RTO) to rate reviews every four to five years respectively. The be conducted every four or five years depending on each basis of the assets to calculate the return allowed for the concession contract and the Extraordinary rate Review investor is the market replacement value, depreciated (RTE), which are carried out when a relevant event that over its useful life from an accounting point of view, and significantly affects the rate value occurs. Thus, the the rate of return on asset allocation is based on the Law guarantees an economic and financial balance for Average Cost of weighted Capital, or WACC (its acronym a company in the event that a material change in their in English) of a model company. The WACC is reviewed operating costs occurs. In the event the components of at each rate cycle. The value of the WACC for distribution the cost of Parcel A, such as energy purchases or taxes currently in force is 11.4% real before taxes. increase significantly in the period between two annual rate adjustments, the concessionaire may file a formal The regulatory mechanisms ensure the creation of request to ANEEL to have those costs passed on to final regulatory assets, whose recomposition of tariffs for the customers. deficits of 2014, took place from the readjustments of tariffs of 2015 (March for Ampla and April for Coelce). All reviews and tariff repositioning are approved by the This mechanism exists since 2001, and it’s named ANEEL. Values Compensation Account of Parcel A (CVA). Its goal es to keep the operational margin constant for the In the rate revisions (RTO and RTE), ANEEL reviews the concessionaire allowing to obtain tariff profits due to the tariffs in response to changes in the costs of buying power Parcel A costs. Electricity Industry Regulatory Framework 165 was also approved the extension of the payment period for every loan, whose payment period is now 54 months starting from November 2015. In reation to the imbalances between the costs recognized in tariffs and the real ones excluded from the management of the distribution company, which were intensified by the costs implied in the drought, ANEEL in January 2015, started to apply a system (known as tariffs Flags) of additional monthly charge over the tariff paid by customers, only if the marginal cost of the system reaches levels above the standard ruled. The goal of the regulator is to provide the consumer with an economic signal of the generation cost. El objetivo del regulador es darle al consumidor una señal económica del costo de la generación already in the subsequent month, thereby anticipating to the Distributos an amount (by its right) that it will only obtaine in the next tariff event. This mechanism, described below, is comprised by three levels of flags: red, yellow and green. Values Compensation Account (“CVA”, in its Portuguese acronym) helps to maintain the market stability and allows the creation of deferred costs, which is compensated by tariffs adjustments based on the rated required to compensate the deficits of the previous years. Green In December 2014 distribution companies in Brazil, Ampla Yellow and Coelce included, signed an addendum to the concession contract that allows these regulatory assets (CVA´s and Red others) to be part of the compensable assets at the end of the concession period, if its not possible in time to obtain Applied when CMO is… (R$/MWh) Additional in Tariff (R$/kWh) < 200 No additional > 200 < 388.48 + 0.025 > 388.48 + 0.045 Description Favorable conditions of energy generation Less favorable condicions of generation More expensive generation conditions compensation through tariffs. As such, according to IFRS In summary, with this mechanism of generation cost that rules, its allowed the contabilization of those regulatory currently is transfered to customers once a year only (when assets/ liabilities. the tariff adjustment is performed), will have a monthly variation, and with this, the customer will be able to manage In 2014, the drought in Brazil continued. In Novemberm the its electricity consumption in a better way. So, customers system reached the maximum risk of energy rationing. The realize that this is a minor tariff adjustment, because they are average levels of dams reached 1% below the last rationing. already paying less for months. To cover the cost overrun of energy, the Government Nevertheless, continues the discusion between Aneel, has created the ACR account through bank loans to pay agents and the company regarding the perfectioning of the the tariff in a two-year period. Until December 31, 2014, flags mechanism improvement, through a public hearing distribution companies used approximately 18 billion that begun on December 15, 2015. The main change is that of Reais from the ACR account; nevertheless, it wasn’t ANEEL proposes the division of the red flag in to levels from enough to cover the whole deficit. In March 2015 a new February 2016. loan for the account ACR was approved, for the purpose of covering the November and December 2014 deficits. It 166 2015 Annual Report Enersis Readjustments and Revisions of 2015 (Ampla, Coelce and CIEN) Free access is guaranteed by law and supervised by ANEEL. The operation and management of the basic network is responsibility of the ONS, which also has the responsibility of managing the dispatch of energy from plants under optimal conditions, thus involving the use of the interconnected system, hydroelectric and thermal power plants. On March 1, 2015, pursuant to Resolution N° 1858/2015, Coelce was subject of an extraordinary revision, where On April 5, 2011 the Ministerial “portarias” 210/2011 its rate increased in 10.28%, in order to face the growth and 211 /2011 were published in the Official Journal, of charges (Energy Development Account (CDE)) and the which equates both interconnection lines of the costs of energy acquisition. Energy Interconnection Company S.A. to public service concessions, with payment of a regulated toll. The Annual The last regular tariff revision of Coelce took place in Revenue Permitted (hereinafter “ RAP “) is adjusted 2015 for the period 2015-2019, which is valid from April annually in June by the National Consumer Price Index 22, 2015 and is provisional because the tariff revision (hereinafter “IPCA “), and tariffs reviews are preformed methodologies weren’t approved in time. The additional every four years. They were defined a Gross Income Base average increase of tariffs was 11.69%, pursuant to of 1.760 million reais ($ 885 million) and a Net Base 1,160 Resolution N° 1882/2015. In 2016, the final revision will million reais ($ 585 million). In 2012, ANEEL approved be calculated and the positive and negative differences the deployment of reinforcements in the transmission derived from the application of the new methodology will facilities, recognizing an additional investment of 47 be included in the readjustment of 2016. million reais ($ 23 million) in the Remuneration Base. The With regards to its concesion contract, Ampla received current regulations as 7.24% (real after taxes). The period a rate increase on March 15, 2015. The average increase of authorization is until June 2020 for Line 1, and until July of tariffs was 42.19%, pursuant to the approval of 2022 for Line 2, with estimated damages compensations Resolution N ° 1.861/2015 and reviewed on April 8 after for unrecovered investments. applicable rate of remuneration was defined according to the extension of the payment period for payment of funds from the ACR account. With this new approval, Resolution N° 1.869/2015, new tariffs have an average effect to regulated customers of 37.34%. Aneel approved the result of the first regular revision of CIEN. Since July 1, 2015, rates were adjusted by Environmental Regulation -7.49%, according to the approval terms in Resolution nº Although the Brazilian Constitution gives the Federal, 1.902/2015. Regulation of Transmission state and local governments the right to enact laws to protect the environment; most environmental regulations in Brazil are at the state and local governments levels. Hydroelectric power plants must obtain concessions for water rights and environmental approvals. Thermal generation, transmission and distribution companies must Any agent in the energy market that produces or obtain environmental approval from the environmental consumes energy is authorized to use the Basic Network. regulatory authorities. The free market consumers also have this right, provided that they meet certain technical and legal requirements. Electricity Industry Regulatory Framework 167 Chile Industry Structure The electricity industry in Chile is divided into three generating units; the Superintendence of Electricity and segments or businesses: generation, transmission Fuels (SEC), which regulates and monitors compliance and distribution. The generation sector comprises the with laws, regulations and technical standards for the electricity generators. They sell their production to generation, transmission and distribution of electricity, distribution companies, clients and other non-regulated liquid and gaseous fuels ; and finally , the Ministry generators through the spot market. The transmission of Energy, which is responsible for proposing and sector includes companies that transmit high voltage conducting public policy on energy and has under its electricity from generating companies. Finally, the control the SEC, the CNE and the Chilean Nuclear Energy distribution sector is defined as comprising any supply Commission (CChEN), strengthening coordination and to end customers at a voltage not exceeding 23 kV. providing a comprehensive view of the sector. It also These three major segments or businesses operate in has an Agency for Energy Efficiency and a Renewable an interconnected and coordinated manner, and its main Energy Center, which in November 2014 was replaced objective is to provide electrical energy to the market by the National Center for Innovation and Promotion of at minimal cost and preserving the quality and safety Sustainable Energies (CIFES). The law also establishes a standards of service required by the electrical codes. Panel of Experts whose primary function is to resolve Because of its essential characteristics, Transmission discrepancies that occur between the various players and Distribution activities are natural monopolies; this in the electricity market: utilities, system operators, is why these segments are regulated as such by the regulator, etc. electrical codes, requiring open access to networks and the definition of regulated rates. From a physical point of view, the Chilean electrical sector is divided into four electrical systems: The The electricity sector in Chile is regulated by the General central interconnected system (SIC), the great north Law of Electric Services, contained in Legislative Decree interconnected system (SING), and two isolated mid No. 1 of 1982 of the Ministry of Mining; the revised size systems: Aysén, Magallanes, Isla de Pascua and and coordinated text was established in the DFL No. Los Lagos. The SIC, which is the main electrical system, 4 of 2006 of the Ministry of Economy (“ Electricity where about 93% of the Chilean population lives, Act “) and its Regulations, contained in DS. No. 327 of extends longitudinally for 2.400 kilometers, joining TalTal 1998. Three government agencies are responsible for in the North, with Quellón, in the island of Chiloe on the the implementation and enforcement of the Electricity South. The SING covers the northern area of the country, Act: the National Energy Commission (CNE), which from Arica to Coloso, covering a length of about 700 has the authority to propose the regulated rates, and kilometers, where a large part of the mining industry is to develop indicative plans for the construction of new located. 168 2015 Annual Report Enersis According to the Electricity Law, Generation and energy biddings for the regulated market for a 20 years Transmission companies that operates in an period. Biddings are conducted in accordance with the interconnected electrical system should coordinate their requirements of the demands of the distribution and operations in an efficient and centralised way through are supervised by the National Energy Commission. an operating entity, the Economic Load Dispatch Centre This allows generators to have stable and predictable (Centro de Despacho Económico de Carga: CDEC) in incomes, preventing variability of the marginal cost, order to operate the system at minimum cost while therefore promoting investments in the area. preserving service assurance. To this effect, CDEC plans and performs the operation of the system, including the In Chile, there is payment for capacity, which depends calculation of hourly marginal cost, the price at which of an annual calculation currently conducted centrally by energy transfers made in the CDEC between generators CDEC each four years, whose objective is to remunerate are valued. CDEC (CDEC-SIC and CDEC-SING), are the development of a gas turbine as a marginal unit to autonomous entities; their function is to coordinate supply the demand of the system. On the other hand, the operation of an electrical system. The subjects of out form the power output of each generation plant that this coordination are generation, transmission and sub- is recognized for capacity payment, that each CDEC transmission companies and free customers. determines annually and its use for the balance between Regulation of Generation Companies generators by this concept. Capacity charge of each power plant is independent from its dispatch and pays for its availability and contribution of the respective system that each CDED coordinates. On December 30, 2015, the President of the Republic Michelle Bachelet J., signed the Supreme Decree approving the long-term strategy fir the energy sector, The generation sector comprises companies that own whose details are included in the document “Energy power plants to generate electricity, which is transmitted 2050 Energy Policy in Chile” formulated by the Minister and distributed to the final consumer. This segment of Energy with the guidelines to accomplish in the next is characterized by being a competitive market where years. electricity is sold to: i) distribution companies to supply their regulated customers within their concession areas. As part of this long-term agenda, a variety of modifications ii) to free or unregulated customers, mainly industries to the energy sector norm have been taken into account. and mining companies, and iii) other generation Among them, there is a law that modified the biddings companies, through the spot market, by energy and scheme for regulated customers enacted in early 2015 power transactions conducted in the CDECs. and the adaptation of the legal framework for the As already mentioned, the operation of the generation by year-end 2015, and was processed through National companies in each electrical system is coordinated by its Congress. transmission segment and for the system operator, which respective CDEC. As a consequence of this efficient and coordinated operation of the electrical systems, at any level of demand, the proper supply is delivered, at the lowest possible production cost alternative available in the market. The marginal cost is used as the Price that the other generators are selling at, at an hourly rate, including the injections to the system, as well as the withdrawal or purchases to provide the service to its customers. In January 2015 the Law 20,805 was enacted, which established that generators should participate in Electricity Industry Regulatory Framework 169 Regulation of Distribution Companies For regulatory purposes, the distribution segment is defined as all electricity supplies to end customers, at a voltage not exceeding 23kV. Distribution companies operate under a concession of public service, with service obligation at regulated tariffs for supplying the regulated customers. Consumers are classified according to the size of their demand. Regulated customers are those the connected capacity of which exceeds 500 kW; and free or unregulated customers, those with a connected capacity greater than 2,000 kW. Customers with connected capacity in the range of 500-2000 kW may opt to have regulated prices or an unregulated system for a minimum of four years in each regime. Distribution companies supply both regulated customers, a segment for which the price and supply conditions are the result of tender processes regulated by the National Energy Commission, and unregulated customers, with bilateral contracts with generators, in which conditions are freely negotiated and agreed. profitability of the industry is within the determined In January 2015, with the enactment of the Law 20,805, distribution companies must have the supply available for The Chilean distribution model is a consolidated model, the total demand forecasted for a five year period, las because to this date, has eight price-settings carried out empresas distribuidoras deben disponer del suministro since the privatization of the sector. The next process will range of 10 per cent with a margin of ± 4%. permanentemente para el total de su demanda be carried out in 2016. proyectada a cinco años, for which public bidings has to be performed for up to 20 years. Also each four years the tariffs revision processes for the subtransmission sector are carried out (which The processes for setting distribution tariffs are carried corresponds to the high voltage facilities connected to the out every four years with the purpose to establish large distribution networks). This process is performed the Distribution Value Added (VAD). The CNE and the in alternated manner to the tariff revision process for representative company responsible for the studies distribution, so both of them have distance of two years. of a typical area where it operates commissioned to independent consultants to determine the Distribution Additionally, every four years the revision of associated Value Added. Preliminary basic tariffs are obtained by services is carried out, corresponding to a variety of weighting the results of the studies commissioned by services not included in the determination of the VAD, and CNE and by the company in the ratio 2/3 – 1/3 respectively. that have to be provided by the distribution companies in With these basic tariffs it’s verified that the aggregate their concession area. 170 2015 Annual Report Enersis Regulation of Transmission The transmission segment comprises a combination of lines, substations and equipment for electricity transmission from the production centers (generators) to the consumption or distribution centres. Transmission is defined in Chile as lines or substations with a voltage greater than 23kV. The authority as trunk or open access transmission classifies transmission facilities, which not apply to the facilities defined as addicional ones. Transmission companies receive a payment for the transmission service they provide without discrimination against any user that requests it, through regulated toll payment pursuant to the current legislation. Environmental Regulation On January 8th, 2014 the bill that empowers the government The existing environmental regulation is the result of to promote electrical interconnections between systems a complete redesign done in 2010, which started by was approved in the annual plannification process. the creation of new environmental institutions: the Pursuant to this new legal framework, on April 21, 2015 Ministry of Environment, which designs and implements the Official Journal published the Decree Nº 158 of the policies, plans and programs on environmental matters; Ministry of Energy, establishing the expansion works of the Environmental Assessment Service (Servicio de the Interconnection of the SING and SIC systems, which Evaluación Ambiental: SEA), in charge of the administration should operate by the end of 2018. of the System of Environmental Impact Assessment; and the Superintendence of the Environment with supervision functions. In addition, the institutionality is complemented with three Environmental Courts. In terms of regulatory law, the regulation consists of the Law No. 19,300 (1994) on General Bases of the Environment, updated in 2010; Law No. 20,417, which creates the Ministry, the Assessment Service and the Superintendence of the Environment (2010) and the Regulations of the Environmental Impact Assessment System (2012). Non-Conventional Renewable Energies Regarding Non-Conventional Renewable Energies (NCRE), in October 2013 the law that encourages the use of NCRE was enacted, establishing for 2025 a mandatory quota of NCRE equivalent to 20% of conventional generation. This law replaced an earlier one that established a target of 10% by 2024. Electricity Industry Regulatory Framework 171 , Colombia Industry Structure The Colombian electricity sector was structurally The CREG is empowered to make regulations governing amended by Law 142, of Home Public Utilities, and the technical and commercial operations as well as Electricity Law 143, both of 1994. According to Law 143 tariffs for regulated activities. The main duties of the of 1994, the various economic, public, private or mixed CREG are setting the conditions for the progressive agents can participate in activities in the sector and are liberalization of the electricity sector towards an open free to perform their functions in a context of free market and competitive market, approve charges for networks competition. To operate or initiate projects, permits must and the costs of transmission and distribution to supply be obtained from the competent authorities regarding regulated customers, establishing the methodology for the environmental, health and water rights issues, and calculating and establishing maximum tariffs for the those of a municipal nature that might be required. supply of the regulated market, establishing standards The Ministry of Mines and Energy (Ministerio de Minas the system, establishing the technical requirements y Energía: MME) defines the government’s policy for quality, reliability and security of supply and protect for the planning and coordination of the operations of for the energy sector. Other government agencies clients’ rights. that play an important role in the electricity industry are: the Superintendence of Home Public Services The Wholesale Electricity Market in Colombia (MEM) (Superintendencia de Servicios Públicos Domicialiarios: is based on a competitive market model and operates SSPD), entity that monitors and audits all utilities; the under the principles of open access. The operation Energy and Gas Regulatory Commission (Comisión and administration of the MEM is a centralized market de Regulación de Energía y Gas: CREG), which is the operator, consisting of a Commercial Exchange Manager regulatory body in electricity, natural gas, liquefied of the System (ASIC) and the National Dispatch Center petroleum gas (LPG) and liquid fuels; the Mining and (CND). Energy Planning Unit (Unidad de Planificación Minero energética: UPME), which is responsible for the planning The generation sector is organised on a competitive and expansion of the network; and the Superintendence basis. Electricity transactions in MEM are carried out of Industry and Commerce, the national authority for under procedures of energy spot Market (short-term issues of protection of competitiveness. or daily market); Bilateral Contracts (long term market); 172 2015 Annual Report Enersis and the Reliability Charge. Generation companies must Transmission operates under conditions of monopoly and mandatorily participate in central dispatch with all their a guaranteed fixed annual income, which is determined by generation plants or units connected to the Colombian the new replacement value of networks and equipment system, with capacities equal to or greater than 20 MW and the value resulting from the bidding process that (participation of plants with capacities between 10 and awarded new projects for the expansion of the National 20 MW is optional). Generation companies participating Transmission System (STN). All traders in the market in in central dispatch must declare the commercial proportion to their energy demands share this value. The availability of their generation resources and the price national interconnected system (SIN) serves 98% of the they wish to sell at. This energy is centrally dispatched country’s demand. Non-interconnected systems serve by CND under economic optimisation criteria and remote areas of the country. respecting the power and operative restrictions of the system. Distribution is defined as the operation of networks of Local and Regional Transmission Distribution. Any Trading is the intermediation between the players customer can have access to a distribution network for providing electricity generation, transmission and which they pay a connection fee. Distributors or network distribution as well as the users of the service. Trading operators are responsible for the planning, investment, can be carried out or not, together with other activities of operation and maintenance of electrical networks with the electricity sector. voltages below 220 KV. Regulation of Generation Companies The Colombian State may participate in the implementation demand for power generators and marketers. The energy and operation of power generation projects just as the market determines the spot price by the ASIC after the private sector. Law 142 enacted in 1994 established day of operations by means of an optimized procedure the legal regime for residential public utilities, and Law for a period of 24 hours referred to as ideal dispatch, 143 enacted in 1994, focusing particularly in electricity with an infinite capacity for network transmission and service, determined the types of entities that are licensed considers initial operating conditions, thus establishing to provide public services; the ‘public utility company’ what generators should be dispatched to meet the was created as the primary vehicle for such service. actual demand. The price paid to all generators that are In the short-term energy market, operationally, CND expensive generator dispatched in each hour under ideal dispatched by merit of price is the price of the most receives, every day, price bids and the declaration of dispatch. commercial availability for each hour in the next day, from all participating generators in the Wholesale Market. The cost differences between the ‘economic dispatch’ Based on this information, CND performs an economic and ‘perfect dispatch’ are called “restriction costs.” The dispatch using an optimised process for next day’s cost of each constraint is assigned initially to the agent 24 hour period, taking into account the electrical and responsible of the restriction, and when it is not possible operative restrictions of the system and other conditions to identify an agent it is distributed proportionally between that are necessary to meet next day’s expected energy all marketers in the Colombian system, according to their demand in a safe, reliable and economical way, from the energy demand, and these costs are passed on to end viewpoint of cost. Unlike other countries where central customers. dispatch is based on variable production costs, dispatch in Colombia is based on prices tendered by agents. Generators connected to the Colombian system can also The energy exchange is a balancing market where you aims to promote investments in generating capacity to sell or buy the excess or deficit of energy resulting secure the service of the long term country’s energy from the enforcement of contracts against the actual demands. The fee consists of assigning Firm Energy participate in the “Reliability Charge”, a mechanism that Electricity Industry Regulatory Framework 173 Obligations (OEF) by a descending auction to existing The price of OEF per KWh corresponds to the closing or new generators, who must ensure that the amount price at the auction for firm energy or Reliability Charge. of energy available in the system for a given period. When this firm energy is required, which happens when The allocation for existing generators is made annually the spot price exceeds the Scarcity Price, a balance and for new projects for up to 20 years. The OEF is a of the agent’s compliance is performed, where ideal commitment by the generating company, backed by its dispatch verifies if the agent covered his OEF with its physical resources that enable them to produce firm own resources, delivered surplus or other agent covered energy. The generator that acquires an OEF receives his OEF, in which case the differences, valued at spot a fixed compensation for the commitment period, price, are balanced. regardless that compliance with its obligation is or isn’t required. Regulation of Distribution Companies In Colombia, distribution companies are free to purchase assets and 13% for regional transmission assets based their supply, and are enabled to define the conditions of on the WACC/CAPM methodology. The methodology for the bidding process to acquire the energy required for calculating the distribution charges includes an incentive the regulated market and can also go and buy energy in scheme for management, operation and maintenance the spot market. The price paid by the end user reflects costs, based on quality of service. For energy losses, an average of the purchase price. Since 2004, the CREG the regulation establishes a path of recognised indices is working on a proposal to amend the contracting of losses to be included in tariffs. procedures in the Colombian market, called Organized Regulated Market -MOR-, which would be an electronic contract system. This mechanism would replace the current bids for energy auctions under standardized commercial conditions, where the demand to contract would be treated as one single aggregate demand. The distribution charges are set by the CREG based on the new replacement value of the existing distribution assets, the capital cost as well as operational and maintenance cost for each company in four different voltage levels, is as follows: Level 1 to 1 kV, Level 2, up to 30 kV, Level 3 up to 57.5 kV and level IV up to 115 kV. Voltage levels 1, 2 and 3 are called Local Distribution Systems (SDL) and Level 4 is called Regional Transmission System (STR). During 2009, after auditing the information reported by the companies, CREG determined the distribution charges to be applied, which are set for a period of five years and updated monthly in accordance to the index of producer prices. Currently, the review process of the distribution charges for the five years 2015 to 2019 is in progress. One of the issues under discussion is the recognised rate of return, which is currently fixed by CREG at 13.9% before taxes for local distribution 174 2015 Annual Report Enersis Regulation of Transmission Transmission networks that operate at 220 kV or higher and the resulting value of the bidding process that have form the National Transmission System (STN). The awarded new projects for expansion of the STN. This transmission rate includes a charge to cover the operating value is allocated to the traders of the STN in proportion costs of the facilities, and a charge for use that applies with their energy demand. only to traders who transfer it directly to final users. The CREG guarantees a fixed annual income for new projects is awarded to the company that offers the transmission companies. This income is determined by lowest present value of cash flows required to perform the replacement value of a new network and equipment, the task. The construction, operation and maintenance of the Regulation of Trading The trading market is divided into regulated and customers is subject to the “regulated freedom regime” unregulated customers. Customers in the free or in which the rates are set by each trader using a unregulated market may freely contract their power combination of general cost formulas determined by the directly from a generator or a distributor, acting as traders, CREG, and individual trading costs approved by the CREG or as pure traders. The market of unregulated customers for each marketer. Rates include, among others, costs of consists of customers with more than 0.1 MW peak energy supply, transmission charges, distribution charges demand or a minimum monthly consumption of 55 MWh. and a trading profit margin. Additionally, the final costs Trading can be performed by generators, distributors that are applied according to the socioeconomic status of the service are affected by subsidies or contributions and independent agents, who comply with certain of each user. requirements. The parties freely agree to the transaction prices for unregulated customers. Tariffs or trading charges for regulated customers must be The energy trader is responsible for billing the costs of by the Consumer Price Index; current trading charges are electricity to final consumers and transfer payments to under revision, thus new charges are expected to apply the various players in the industry. Trading for regulated in 2016. reviewed every five years and must be updated monthly Electricity Industry Regulatory Framework 175 Environmental Regulation The legal framework for environmental regulation in municipalities and environmental corporations in localities Colombia was established in Law 99/1993, which also where the plants are located. Hydroelectric plants must created the Ministry of the Environment as the authority pay 6% of their generation and thermo electrical power for defining environmental policies. The Ministry defines plants must pay 4% of their generation, with rates that issues and executes policies and regulations aimed at are determined annually. the recovery, conservation, protection, organization, management and use of renewable resources. In 2011, the Decree 3,570 established the new structure Any entity planning to develop projects or activities Environment and Sustainable Development (previously, related to the generation, interconnection, transmission the functions of the Ministry of the Environment or energy distribution of energy, which may result were includeed with the functions of the Ministry of in environmental degradation, must first obtain an Housing). That same year, Decree 3,573 created the of the environmental sector, creating the Ministry of the environmental license. National Environmental Licensing Authority (Autoridad Nacional de Licencias Ambientales) as the responsible According to law No. 99 power generation plants having entity for granting and monitoring licenses, permits a total installed capacity greater than 10 MW, should and environmental procedures of the Ministry of the contribute to environmental conservation through Environment and Sustainable Development. a payment for their activities at a regulated rate to In recent years, environmental regulations for the electricity sector have been focused on: i) regulating emission of power plants; ii) the formulation, issuance and implementation of the National Policy for Integrated Water Resources Management (which includes regulations and/or updating of regulations associated with discharges, environmental flows and the organisation and management of watersheds); iii) issuing of the compensations manual for loss of biodiversity for projects subject to environmental licensing; and iv) updating the regulatory and environmental licensing framework; and regulation of the environmental sanctions regime. In Colombia, there is now an indicative path for NCRE’s participation in the National Energy System of 3.5% in 2015 and 6.5% in 2020. In 2014, Law 1,715 was issued, through which the integration of NCRE into the National Energy System is regulated, with the aim of promoting the development and use of non-conventional energy sources and promoting efficient energy management. In 2015 the Ministry of Mines and Energy enacted the Decree 2143 defining the guidelines for the application of tax and fiscal incentives established in Law 1715. Accordingly, the procedures to have access to the benefits proposed by the aforementioned law are being designed. 176 2015 Annual Report Enersis  Peru Industry Structure The general legal framework applicable to the Peruvian Por su parte, el Organismo de Evaluación y Fiscalización electricity industry is mainly constituted by the Electricity Ambiental (OEFA) adscrito al Ministerio del Ambiente, Concessions Law (Law Decree No. 25,844 of 1992) and its es responsable de la supervisión y fiscalización de las regulatory provisions. obligaciones ambientales contenidas en los instrumentos ambientales aprobados. The Ministry of Energy and Mines (MINEM) defines energy policies applicable at a national level, regulates The Committee on Economic Operation of the System environmental matters applicable to the energy sector (COES) is the body that coordinates the operation and and oversees the allocation, monitoring, termination and dispatch of electricity in the national interconnected revoking of licenses, authorizations and concessions for Electrical System (SEIN) and prepares the technical and the generation, transmission and distribution activities. financial study that forms the basis for annual estimates The Supervisory Agency of Investment in Energy and distribution companies are represented, and also include Mining (Osinergmin) is the regulatory body that controls and Large Customers (free customers whose consumption is of bar prices. In the COES, generation, transmission and monitors compliance with legal standards and techniques higher than 10MW). related to electricity and hydrocarbon activities. It enforces the obligations under concession contracts. Osinergmin In rural areas there are small isolated electric systems that Deputy Management for Tariff Regulation (GART) has the provides electricity to specific areas, and represents less authority to publish the regulated tariffs. Osinergmin also than 7% of the total domestic generation. controls and supervises the tendering processes required by distribution companies to buy power from generators. The main characteristics of the electricity industry in Peru The Agency for Assessment and Environmental Control are: (i) separation of the three main activities: generation, (OEFA) is responsible for environmental preservation transmission and distribution; (ii) free market for energy related to electricity activities. supply in competitive market conditions; (iii) a system of Electricity Industry Regulatory Framework 177 regulated prices based on the principle of efficiency and a approach, Law 28,832 of 2006, named Law to Ensure bidding regime; and (iv) privatization of the operation of the the Efficient Development of Electricity Generation also interconnected power systems subject to the principles of established the possibility for dealers to meet the demand efficiency and quality of service. of its regulated and unregulated customers under contracts In Peru there is the capacity charge, given by the amount of approval of this mechanism is important for generators payments for developing a gas turbine, as the marginal unit because it allows them to have a stable price over the life that supplies the demand of the system. Similar to Chile, of the contract, which is not set by the regulator and may entered after a power and energy bidding process. The the capacity charge is independent from its dispatch and last up to 20 years. remunerates the availability and contribution to the reserve margin objective mentioned by the competent authorities. Following the introduction of competitive bidding, most of Generation companies that own or operate a generation for their regulated customers, result from the biddings. power plant with installed capacity higher than 500 kW Only a small part of the energy purchased by distribution require a permanent concession granted by the MINEM. companies is still maintained under the scheme of bilateral the new contracts to sell energy to distribution companies Coordination of dispatch of electric operations, the spot contracts. prices determination and the management of economic Another regulation that impacted the electricity market was transactions that occur in the SEIN, are controlled by the the Emergency Decree N° 049-2008, which introduced the COES. concept of “Idealized Marginal Cost”, this supposes that for economic dispatch effect, to determine the short term Generators can sell their power directly to large consumers marginal costs of the SEIN, has to consider that there and buy the deficit or transfer surplus energy between the are no restrictions neither of natural gas (production or contracted and actual production, in the pool, at the spot transport), nor of electricity transmission; and also that price. Sales to unregulated customers are conducted at marginal costs can’t exceed a limit value defined by the mutually agreed prices and terms, which include tolls and Minister of Mining and Energy. The Emergency Decree is compensation for the use of transmission systems and, in force until December 31, 2016. where necessary, to the distribution companies for use of their distribution networks. In Peru exists the capacity charge, which is given by the amount of payments for developing a gas turbine, as the The Electricity Concessions Law allowed that the sales to marginal unit that supplies the demand of the system. distributors might be conducted under bilateral contracts Similar to Chile, the capacity charge is independent at a price not greater than the regulated price, in the case from its dispatch and remunerates the availability and of regulated customers, or at an agreed price in the case contribution to the reserve margin objective mentioned by of unregulated customers. In addition to this bilateral the competent authorities. Regulation of Distribution Companies The electricity tariff for regulated customers include energy Added of Distribution) will take place each four years and and capacity charges for generation and transmission, and will be calculated by each company (before VAD was the Added Value for Distribution (VAD) which considers calculated for one company representative of a group or a regulated return on investments, fixed charges for typical sector and this VAD was applied to every company operation and maintenance, and a standard percentage for that belong to that group). In addition, an additional charge energy losses in distribution. will be recognized in the tariff for the projects that include In September 2015 the Legislative Decree N° 1221 was approved by Osinergmin. Incentives will be granted for published, which determines that the setting of VAD (Value improvements of service quality and the possibility to technology innovation and energy efficiency previously 178 2015 Annual Report Enersis expand the concession areas of distribution companies according to the observations of the study contracted by considering rural areas near their concession areas. Osinergmin. The preliminary tariffs are checked to ensure that the average aggregated annual internal rate of return The real return on investments of a distribution company of the whole industry is 12% with a variation of ± 4%. depends on its performance against the standards set by Besides, tariffs are indexed to the exchange rate and Osinergmin for a theoretical model company. The system commodities prices such as copper and aluminium, thus allows a higher return rate to the distribution companies that the tariffs in Perú don’t incorporate exchange rate risk. are more efficient than the model company. Preliminary tariffs are determined based on the results of the study During the last rate-setting process, OSINERGMIN defined commissioned by the companies, which are corrected Edelnor rates for the November 2013 to October 2017 period. Regulation of Transmission Transmission activities are defined in different regimes. The Transmission Plan, developed by the COES and Those facilities built before 2006 are divided in the Main approved by the MINEM, determines the development of System, which are for common use and allow the flow of the lines of the Guaranteed System, whose biddings are energy through the domestic network, and the Secondary performed under a BOOT scheme for a 30-year period. The System for facilities that connect a generation power transmission concessionaires of the Guaranteed System plant with the system or a substation with a distribution receive an annual fixed payment derived form those company or with the final customer. For its part, facilities biddings. built after 2006 are divided in: the Guaranteed System, comprised by lines for common use, and part of the Complementary system lines are developed through Transmission Plan created by the COES and whose toll investment plans submitted by agents and approved by is paid by the whole demand of the system, and the Osinergmin, which calculates the average annual cost to Supplementary System, whose lines are connected to a remunerate for each facility, considering standard costs generation power plant or to a user with the system and of investment, operation and maintenance, a rate of 12% are paid by the beneficiary. before taxes and a term of 30 years. Environmental Regulation The environmental legal framework applied to energy related activities in Peru is stipulated in the Environmental Law (Law No. 28,611) and the Environmental Protection Regulations for Electrical Activities (Supreme Decree 029- 94-EM). In 2008, the MINEM enacted Supreme Decree 050-2008 to incentivize the generation of electricity by means of NCRE. The decree stipulates that 5% of demand of the SEIN must be provided with the use of NCRE. This goal could increase 5% every 5 years. The technologies considered renewable resources include: biomass, wind farms, tidal, geothermal, solar and mini-hydro (less than 20 MW hydroelectric power plants). Electricity Industry Regulatory Framework 179 Description of Electricity Business by Country Description of Electricity Business by Country 181 182 2015 Annual Report Enersis  Electricity Generation The generation businesses are mainly conducted through our subsidiary Endesa Chile. In this segment, the Enersis Group has operating subsidiaries in Argentina, Brazil, Chile, Colombia and Peru. In its entirety, the installed capacity of the Enersis Group amounted to 17,302 MW in December 2015 and the consolidated electricity generation reached 60,403 GWh, while energy sales totaled 72,039 GWh. In the electricity industry, business segmentation between hydro and thermal generation is natural, since the variable costs of generation are different for each type of production. Thermal generation requires the purchase of fossil fuels and hydroelectric power requires building water reservoirs and water from rivers. 53% of our consolidated generating capacity comes from hydro, 46% from thermal sources and 1% from wind farms. Therefore, the commercial policy defined by the Company is relevant for the adequate management of the business. Electricity Transmission For the Enersis Group, the business of power transmission is carried out mainly through the interconnection line between Argentina and Brazil, CIEN, a subsidiary of Enel Brazil, with a transport capacity of 2,100 MW. Para el Grupo Enersis. el negocio de transmisión de energía eléctrica se realiza principalmente a través de la línea de interconexión entre Argentina y Brasil. CIEN. filial de Enel Brasil. con una capacidad de transporte 2,100 MW, Electricity Distribution Our distribution business is conducted through Edesur in Argentina, Ampla and Coelce (owned by Enel Brazil) in Brazil, Chilectra in Chile, Codensa in Colombia and in Edelnor in Peru. During 2015, our main subsidiaries and related distribution companies sold 78,731 GWh. Currently, Edesur, Ampla, Coelce Chilectra Codensa and Edelnor serve the major cities in Latin America, providing electric service to more than 15.2 million customers. These companies faced increasing electricity demand, which forced them to constantly invest, both due to natural growth as well as for the maintenance of their facilities. Description of Electricity Business by Country 183 184 2015 Annual Report Enersis MEMORIA ANUAL ENERSIS 2013136Buenos AiresCórdobaMendozaNeuquénTransmissionDistributionGenerationCentral ArroyitoTypeHydroelectricInstalled Capacity128 MWEl Chocón HydroelectricTypeHydroelectricInstalled Capacity1,200 MWCentral CostaneraTypeThermoelectricInstalled Capacity2,324 MWEdesurEnergy Sales18,492 GWhEnergy Losses10.7%Clients2.5 millionsCentral Dock SudTypeThermoelectricInstalled Capacity870 MWDESCRIPCIÓN DEL NEGOCIO ELÉCTRICO POR PAÍS Argentina Electricity Generation In Argentina, Enersis participates in the electricity about 800 MW, Costanera and Hidroeléctrica El Chocón generation through Endesa Chile’s subsidiaries, Endesa continued during 2015,complying with the obligations Costanera and Hidroeléctrica El Chocón, and since March they have regarding VOSA generation project, fruit of 2013, through our subsidiary Dock Sud. the Agreement signed between the Ministry of Energy Costanera and Hidroeléctrica El Chocón have together 3,652 MW of installed capacity. This power represented at the end of 2015, 10.9% of the installed capacity of the Argentinean SIN. Electricity generation of these companies reached as of December 31, 2015, 11,406 GWh, 8.3% of the country’s total generation. and major electricity generating companies, which was signed by both Societies. The plant began operating two gas turbines, 270 MW each, in Simple Cycle. For october 2016 entry into service is scheduled of all the facilities of the new plant made up of a Combined Cycle of two Gas Turbines and one steam turbine. Once the combined cycle is commissioned, will begin Costanera and Hidroeléctrica El Chocón have a stake to pay the debt that CAMMESA maintains with the in societies involved in the operation of two combined generating companies that contributed to the project cycles, coordinated by the Fund for Investments Required through a 10 year-supply contract, with 30-day LIBOR to Increase the Supply of Electricity in the Wholesale plus 5% under the 2008-2011 Generators’ Agreement. Electricity Market (FONINVEMEN) with 5.33% and 18.85% ownership, respectively. Other generators connected to Argentine SIN are: AES Alicura, Sadesa, Capex, Petrobras, Pampa Generación Regarding the project Vuelta de Obligado S.A. (VOSA), and Pluspetrol. which includes the installation of a Combined Cycle of Description of Electricity Business by Country 185 Motor-generators Project Costanera Costanera is located in the city of Buenos Aires and has In February 2014, the Argentine Government called six steam turbine units totalling 1,138 MW, which can main generators to submit new generation’s installation generate with natural gas or fuel oil. It also operates two projects, preferably fuel oil, which should be operational 859 MW and 327 MW combined cycles, respectively; and by June 1st, 2015. total installed capacity is 2,324 MW. At the beginning of 2015, the works were delayed, buy In 2015, net generation was 8,167 GWh and energy sales its estimated that the commissioning date won’t be reached 8,168 GWh. compromised. Energy demand increased 4.4% with respect to 2014. In March 2015, due to the delays of the contractor of mounting, Ingeniería Ronza, a contingency plan was During 2015, CAMMESA dispatch the SADI, pursuant to developed for the engines start-up in an effort to maintain the resolution established by the Secretary of Energy, the committed date. Despite the measures adopted, in such context, which has prioritized the more efficient Ingeniería Ronza wasn’t able to deliver the works for the thermal units dispatch using Natural Gas and the turbo- start-up of the commissioning from Wärtsilä, planned for steam units burning Fuel Oil (FO). April 30, 2015. In consequence, a new commissioning date was needed; MEM, this resulted from the consideration of availability of July 31, 2015 and to extend the works of Wärtsilä at higher National and imported Natural Gas according to a quota costs amounting to € 364,000. assigned to the power plants sector. With regards to the Natural Gas used for the dispatch of the The commissioning with gas oil of the four motogenerators As in previous years, a maintenance program was carried was in November, start-up essays and checking of the out, which most important tasks focused on the contribution guaranteed values, without any observations. of own personnel to perform the supplementary works of the Rehabilitation Project of the Steam Turbine units, on At the beginning of December, the commercial authorization the one hand, and on the other, maintaining the rest of the was requested to Cammesa with the presentation of the units in service. Studies for Stage II, according to the procedures for the connection of the new generation. With regards to the rehabilitation of the conventional units, it’s worth to mention that during 2015 the rehabilitation of Considering the higher costs and additional works units Nº 2 and Nº 4 concluded with very good results. registered in the development of the project, the amounts were lower than US$ 43.5 million (VAT included) authorized The rehabilitation of the remaining units is expected to be for the project. completed next year. With regards to combined cycles, its worth to highlight the good behavior of the Mitsubishi combined cycle (CCII) with a generation higher than 5,000 GWh net. On another front, in relation to the methodology to be applied for the remunerations conciliation of Resolution SE Nº 95/2013 and the Contracts of Availability of Combined Cycles and Turbosteam (TV’s) and in addition to what was informed last year, its worth mentioning that after negociations with the Secretary of Energy, the Agreement 186 2015 Annual Report Enersis with the Government for the treatment of the revenues Completion of the water injection works for the control of overlapping for the contracts of availability of Endesa Costanera through note SSEE Nº 476/15. On July 3, 2015 emissions NOx in CC Siemens of US$ 2.92 million, Spare part for the generator of the TV CC MHI unit for 2, US$ the adenda I and III for the Combined Cycles and TV’s 25 million and Modernization of the Control System CC contracts were signed. MHI of US$ 3.00 million. The Company is waiting for the For Costanera, the implementation of Resolution with CAMMESA the advance of funds to comply with the 482/15 prompted an increase of the remuneration of payment on account requested by the supplier Siemens fixed charges of nearly 28% for combined cycles and to be enabled to perform the scheduled maintenance of corresponding response. The Company is also negotiating for steam turbines. Remuneration of variable charges the cycle. grew 23%. The concept of Additional Remuneration increased 25%, while the remuneration concept for non- In the finance area, it is worth mentioning that in 2015 the recurring maintenance increased in 17.5%. Additionally, Company continued with the financial strategy already the resources for Foninvemem 2015-2018 investments adopted in previous years, to prioritise the conservative were incorporated, and the energy production incentives management of finances in order to secure the necessary and operational efficiency that are applied only if the financial resources for the adequate operation of the Agreement for Management and Operation of the Projects power plant. of Thermal Generation Availability Growth and Adaptation of Remuneration of Generation 2015-2018. Note that in 2014 the restructuring of the most important liabilities of the Company was signed with Mitsubishi In July 2015, it was requested to the Deputy Secretary of Corporation on advantageous terms for the Company, Electrical Energy -through note GG1380/15- the inclusion and additionally to what was informed the previous of supplementary works within the Combined Cycles year, in December 15, 2015 the installment of US$ 3,0 Availability Contracts. The works to be included are: million was paid, according to the established payment Extension of useful life of CC Siemens of US$ 7.94 million, schedule. Description of Electricity Business by Country 187 El Chocón Hydroelectric Hidroeléctrica El Chocón SA is a hydroelectric generation company, which operates El Chocón and Arroyito plants, located on River Limay. It’s located in the provinces of Neuquén and Río Negro. The hydroelectric complex has 1,328 MW total installed capacity and includes El Chocón plant, with 1,200MW installed capacity (artificial reservoir’s hydroelectric plant) and Arroyito plant, with 128 MW installed capacity, both using the waters of Rivers Limay and Collón Curá for generation. The hydroelectricgeneration of El Chocón is located in the Comahue region, and is comprised by the Argentinenan provinces Río Negro, Neuquén and the southern area of Buenos Aires provinces. El Chocón is located in the Limay River, 80 km upstream from the confluence with Neuquén river. Arroyito is the compensator dam of El Chocón and is located in the same riever, 25 km downstream. The hydrological year starting April 1st, 2015 has been characterized as dry after five dry consecutive years, therefore the contributions of the hydrological basins of Rivers Limay and Collón Curá were scarce, which is why the operating criteria applied by the Agency In Charge Of Dispatch was to restrict the use of accumulated strategic reserves. This method resulted in the maintenance and slight recovery of Comahue’s energy reserves respect to 2014. As a result of the El Chocón dam dispatch at the end of 2015, net generation of the El Chocón/Arroyito facilities Worth is to highlight that in 2015, Hidroeléctrica El amounted to 3,235 GWh, reaching a reservoir height Chocón, made progress in the replacement of mineral oil of 379.78 m.s.n.m. on December 31, 2015. The power by biodegradable oil project in two out of the six gates of reserve of the Comague dams was 6,582 GWh, 2,512 El Chocón power plant, reaching important improvement GWh of which came from El Chocón, both amounts were from the environmental point of view. It’s expected to measured with regards to the minimum height condition complete the replacement in the four remaining gates of the Extraordinary Operation Band (Franja de Operación in 2016. Extraordinaria or FOE). By mid 2015, three hydrocarbon separators were installed Regarding the operational aspect, in 2015 accumulated in Arroyito power plant became available, in order to avoid availability of El Chocón-Arroyito complex was 97.89%, possible losses of oil in the exchangers of water/ oil of having satisfactorily completed Scheduled Maintenance the bearings of the turbine that might reach Limay River. for both plants. Protections’ System Modernisation, Excitation and Start/ Stop Sequence of units No. 3 and 4 In the regulatory area, on July 17, 2015 the Resolution SE and T3CH main transformer of El Chocón Plant were also N° 482/ 2015 of the Secretary of Energy Register was supplemented. enacted, replacing Resolution SE N°529/ 2014 published 188 2015 Annual Report Enersis in May 2014, which in turn have replaced Resolution SE N°95/13 introducing adjustments to the regulation that rules the Wholesale Electricity Market (MEM), in the Central Dock Sud aspects related with remuneration of the generation Central Dock Sud is located in Avellaneda district, Buenos agents, cogenerators and selfgenerators of the MEM. Aires. Dock Sud owns and operates a sigle generation For Hidroeléctrica El Chocón S.A., the implementation power plant with two units, with a total capacity of 870 of Resolution 482/15 produced an increase of variable MW. Central Dock Sud has four gas turbines and one remuneration of around 23% and a growth of fixed steam turbine. Two of the gas turbines and the steam costs higher than 27% for Hidros Grandes and 64% turbine comprises once combined cycle power plant. for Hidros Medianas. The additional remmuneration didn’t experience any changes and includes the concept The energy generadated by Dock Sud in 2015 amounted to for “Remuneration of Non-Recurring Maintenance”. 3,799 GWh, and represented 2.8% of the System, while Additionally, positive effects of the Resource for sales of energy reached 3,802 GWh and represented 2.9% Investments of the Foninvemem 2015 - 2018 and the of the total sales of the country. energy generation incentives and operational efficiency operative were incorporated. As of December 31, 2015, installed capacity of Dock Sud represented 2.7% of the total installed capacity in the SIN. With reference to the electric transportation cost, Resolution 482/ 15 grants its acknowledgment to the hydroelectric power plants. In 2015, regarding development of own personnel and contractor’s activities, there have been no accidents. IFG and IGG=0 indicators confirm a very good year in terms of safety of own and contractor workers. In the area of finance, the Company, despite the challenging scenario of the energy sector, paid in full all of its debt maturities corresponding to the syndicated loan in pesos for $ 58,3 million and also the maturities of the bilateral loan with Deutsche Bank AG, Standard Bank Plc and Itaú BBA Securities for US$ 14.8 million. With reference to the US$ 6.89 million loan for the execution of works in the six units of El Chocón plant (Modernisation, Automation and equipment renewal works) – awarded by Cammesa, on favourable terms for the Company – in addition to what was reported last year, it is worth mentioning that as at December 31st, 2015, the total amount received under that item amounted to US$35.1 million. The main investment projects to be undertaken in 2016 are: i) Carrying out major Maintenance of the main switches in five machines, and ii) Replace the regulators of speed/ loads of the turbines in El Chocón. Description of Electricity Business by Country 189 Generation Costs Remuneration Scheme – Resolution S.E. N°482/15 On July 17, 2015 the Energy Secretariat published participating in the investment projects approved Resolution SE N° 482/2015, which replaces Resolution or to be approved by the SE, are to be determined SE N°529/2014 that modifies the remuneration of the monthly and its calculation will be in function of the different components of the cost structure of the MEM total energy generated. CAMMESA is instructed to agents for thermal conventional or national hydraulic allocate retroactively the new charge once the supply types for the blocks of energy not commercialized contracts and the project construction are signed. through energy contracts regulated by the Energy The Secretariat will establish a methodology for that Secretariat. This resolution incorporates differents purpose. mechanisms that ensure electric power supply at In the event of non-compliance of the commitments reasonable prices thus compatible with the support of included in the referred contracts, the Secretariat the local economic competitiveness when promoting would modify the purpose of the resources without sustainable development for the sector. With the purpose involving the right of complaint from generators. of increasing the power available and the operational (iv) In a period of no less than 10 years from the efficiency of generating units of electric power, the commercial start up of each generation unit built remuneration methodologies for thermal generation are under FONINVEMEMM 2015-2018 scheme, a Direct adjusted through the adjustment of mechanisms for Remuneration FONINVEMEM 2015-2018 is equivalent Variable Costs remuneration (non fuels) as a function of to 50% of the Direct Additional Remuneration. the dispatch factor of generating units and the efficiency (v) Incorporation of new Incentives to the Energy of the real fuel consumption in relation to the reference Production and Operational Efficiency scheme. values to that end. The norm also includes additional (vi) Definition of single values in the recognition of the resources for the investments to be developed in the schemes and concepts of remuneration established FONINVEMEM 2015-2018. in this resolution for generation agents and to those who had terminated the duration of a Contract As defined in this resolution, its application is from the regulated by the SE (Res 220, etc.). economic transactions corresponding to February 2015 (vii) The application of this resolution is established for the generators that have subscribed Resolution N° retroactively at February 2015. 95/13 of the SE. On June 5, 2015, the Society and other generators of With this new resolution, the SE solves the following: the MEM signed the “Agreement for the Management (i) Replacement of ANNEXES I, II, III, IV, and V of and Operation of Projects for the Growth of the Thermal Resolution N° 529/14 for ANNEXES I, II, III, IV and V of Generation Availability and the Adjustment of the Resolution 482/2015 which updates the remuneration Remuneration of Generation 2015-2018, from now on, values for fixed costs, variable costs, additional FONINVEMEM 2015-2018 and endorses all the terms remuneration and non-recurring maintenance. established in such agreement on July 2, 2015. The (ii) Excludes the payment of variable collection for energy endorsement comprises the irrevocable commitment transportation and power of the hydroelectric power to participate in the constitution of the FONINVEMEM plants and/ or renewables. 2015-2018, engaging, with regards to item 3.2.v of the (iii) Incorporation, from the economic transactions Agreement, the LVFVD and/or the Claims accrued or to of February 2015 through December 2018, both be accrued during the period between February 2015 inclusive, of a new scheme of specific contributions and December 2018, both inclusive, not committed denominated “Resources for Investments of previously in similar programs together with all those FONINVEMEN 2015-2018”, from now on Resources Claims, that are not used to allocate them to the project. for Investments, allocated to those generators The Secretary and the generation agents that endorse 190 2015 Annual Report Enersis the Agreement reserve the right to have solved this Agreement if during the 90 days established in item Edesur 9 of the Agreement, the respective supplementary Edesur’s main purpose is the distribution and agreements are not subscribed. commercialization of electricity in the southern area of Buenos Aires, comprising two thirds of the city of Buenos With the subscription of the Agreement, the Society Aires and twelve districts of Buenos Aires province, would participate, together with other Generation covering 3,309 km2, for a period of 95 years starting from Agents, in the construction of a new Combined Cycle August 31, 1992. of nearly 800 MW +/- 15% that will generate both with natural gas and with gasoil and biodiesel. The timing of This period includes an initial one of 15 years and eight the bidding for the New combined cycle will be defined additional periods of 10 years each. On February 5, 2007, in order to start up in no more than 34 months from the the National Electricity Regulatory Entity (ENRE) resolved awarding of the work. Land Reserved for Future Projects to extend the initial period for five additional years, from the completion of the Integral Prices’ Revision (RTI) process. Afterwards, on March 13, 2015, the Energy Secretariat instructed, through Resolution SE 32/2015, the National Electricity Regulator Entity (Ente Nacional Regulador In Argentina currently there is no land reserved for future de Electricidad, ENRE) to perform previous actions to projects. Electricity Distribution in Argentina carry out the Integral Fees Renegotiation (Renegociación Tarifaria Integral, RTI) process, without establishing the implementation date. The concession contract establishes the obligation of Edesur to provide electricity as requested by the owners or residents of the property within the concession area, to comply with certain rules related with the electricity delivered, to comply with the operational demands Enersis participates in electricity distribution through its related to the maintenance of distribution assets and to subsidiary Edesur in which it has, directly and indirectly, bill clients according to actual measurements. 71.6% ownership. In 2015, Edesur delivered electric power service to The market share of our subsidiary in Argentina, in 2,479,559 customers, which represents 0.63% growth terms of physical sales, was approximately 15%. Other with regards to the previous year. Of the total, 87.6% are distribution companies in the Argentine electricity system residential customers, 11% commercial customers, 0.9% are: Empresa de Distribución de Energía de Tucumán industrials and 0.4% other users. Energy sales reached (EDET), Empresa Distribuidora y Comercializadora Norte 18,492 GWh, and increased 2.9% from the previous (EDENOR), Empresa de Distribución de la Plata (EDELAP) year. The distribution was: 42.6% residential customers, and Empresa Distribuidora de Energía Atlántica (EDEA). 31.2% commercial customers, 18.5 industrial sector and 7.7% others. Energy losses index reached 12.28% during 2015. Description of Electricity Business by Country 191 Distribution Activities and Projects Telecontrol Project of Medium Power Network With the purpose of reducing replacement times and circuit (DICC’s) with meter reading capacity, were added. consequently improve service quality indicators, the Since the beginning of the project, there has been 316 Telecontrol Project of Medium Power Network has Transformation Centers MT/BT subject to meter reading. continued, which begun in 2011. The selection criterion for the installation points, In addition to an important technology innovation, the considered mainly those medium tension feeders with implementation of this project will result in important service quality indicators records more committed and supply replacement times reductions for a large amount also those defined jointly with the municipalities as of users in the case of a failure of the medium power “Sensitive Customers”, such is the case of the water network, through the remote sensing of failures and the pumping stations, day-care centers or hospitals. remote operation of the network, which will perform the first normalization from the Control Center without the Thanks to the implementation of this project, it intervention of operational staff on site. was observed a reduction of operating times, thus During 2015, four new transformation centers MT/BT service quality penalties. This enables higher security of with state-of-the-art equipment (SF6), together with its operations, better benefits of operationsl guards, image corresponding communication (GPRS) to the Control improvements facing customers and authorities and Center and the installation of power detectors of short higher energy sales. decreasing interrumption times, which in turn reduces 192 2015 Annual Report Enersis Innovation and energy efficiency During 2015, Edesur introduced the ENEL technology in the recharching stations for electric vehicles in the following events with the purpose of promotiong the electric mobility projects aligned with the clean environment concept: > Mayors’ meeting C40. > INNOVA –Education, Science and Technology Exhibition organized by the government of Buenos Aires. > Aula BID Event (Interamerican Development Bank). > Green City Festival, organized by the Environment Ministry, Governement of Buenos Aires. > Buenos Aires celebrates Italy. Likewise, Edesur chaired the Normalization Committee for the Electric Installations for the Electric Vehicles Supply at the AEA (Electric Argentine Association), which includes vehicles and motorcycles and electric bicycles. With regards to motorcycles, the technical specialists of the Company designed and created exclusive recharge equipment for electric motorcycles, which was totally developed in our laboratories and will be subject of patenting as a new utility model. With this, the first recharge point for electric motorcycle was inaugurated in Argentina. Thus, the Company became a reference at the country level regarding every type of recharge stations related to electric mobility. Description of Electricity Business by Country 193 194 2015 Annual Report Enersis MEMORIA ANUAL ENERSIS 2013144Río de JaneiroBelénManausSao PauloGoianaBrasiliaTransmissionDistributionGenerationC. Cachoeira DouradaTypeHydroelectricInstalled Capacity665 MWCIENInstalled Capacity2,100 MWEnergy Sales11,229 GWhClientsEnergy Losses3.8 millionCoelce13.7%TypeThermoelectricInstalled Capacity322 MWCentral FortalezaEnergy Sales11,547 GWhClientsEnergy Losses3.0 millionAmpla20.9%DESCRIPCIÓN DEL NEGOCIO ELÉCTRICO POR PAÍS Brazil Electricity Generation Enersis participates in electricity generation through Enel Brazil and its subsidiaries Cachoeira and Fortaleza. These two power plants, one hydroelectric and the other thermal, add up 987 MW total capacity, representing 0.7% of the capacity of Brazilian SIN. In Brazil, electricity generation of the Group reached 4,399 GWh, reaching 0.8% of the total generation in the country, hydroelectric production being 47% of the total generation of the Enersis Group in Brazil. For its part, energy physical sales reached 6,541 GWh, about 1.4% of total sales in the Brazilian system. Other generators connected to Brazilian SIN are: CHESF, Furnas, Cemig, Electronorte, Cesp, Copel, Eletrobras and Eletropaulo. Cachoeira Fortaleza Cachoeira is located in the State of Goias, 240 km south Fortaleza is located in Caucaia municipality, 50 km from the of Goiania. It owns ten units with 665 MW total installed capital of Ceará state. Fortaleza is a 322 MW combined cycle capacity. It is a run-of-the-river power plant and uses the thermal plant that uses natural gas; and has the capacity to waters of River Paranaiba. generate one third of the electricity needs of Ceará, which Net generation in 2015 was 2,057 GWh, while sales reached 3,215 GWh. has a population of about 8.2 million inhabitants. Fortaleza was built on a 70 thousand square meters area, it’s part of the infrastructure of the Industrial and Port Complex of Pecém, in Caucaia municipality, and it is part of the Thermoelectricity Priority Program (PPT) of the Federal Government. Fortaleza has a strategic location to boost regional growth and to facilitate the setup of other industries. Its main customers are Coelce and Petrobras. Electricity generation in 2015 was 2,342 GWh, while sales totalled 3,326 GWh. Description of Electricity Business by Country 195 Land Reserved for Future Projects Enel Brazil has an area of 75 ha, in the city of Macae, Rio de Janeiro, for a new thermoelectric project. Electricity Transmission In Brazil, Enersis Group also participates in transmission and sale of electricity through the interconnection line between Argentina and Brazil, through CIEN, holding 84,38% of ownership. CIEN Compañía de Interconexión Energética S.A. (CIEN) is On April 5, 2011 decrees were published in the Official an energy transmission company in Brazil. The complex Gazette defining the annual value of the Allowed Annual consists of two frequency conversion stations, Garabi I Remuneration (RAP) for CIEN. With this, the regulator and II Garabi II, converting both ways the frequencies of equates CIEN (the assets of which consist of Garabi 1 and Brazil (60 Hertz) and Argentina (50 Hertz) and transmission 2 lines) to concessionaires of public service transmission. lines. On the Argentine side, they are managed by two Total annual RAP is adjusted annually and tariff review subsidiaries: Compañía de Transmisión del Mercosur S.A. processes will be conducted every four years. Starting (CTM) and Transportadora de Energía S.A. (TESA). CIEN from April 2011, therefore, CIEN was officially authorised has control of 100.0% of the capital in both companies. to receive payments under this new business approach. The interconnection system consists of two transmission lines with a total length of 1,000 km, and Garabi Conversion Station. 196 2015 Annual Report Enersis Electricity Distribution in Brazil Enersis participates in distribution through Enel Brasil and its subsidiaries Ampla and Coelce. Enersis owns directly and indirectly an economic ownership of 92.03% and 64.86% of the property of these companies, respectively. In Brazil, main distribution companies within the electrical system are: CPFL, Brasiliana de Energía, AES Elpa, Cemig, Light, Coelba and Copel. Ampla Coelce Ampla is a power distribution company with operations in Coelce is the electric distribution company in the State 73% of the territory of the State of Rio de Janeiro, which of Ceará, in northeastern Brazil, which covers a 148,921 is a 32,188 km2 area. The population is approximately 8 km2 concession area. The company serves a population of million inhabitants, distributed in 66 municipalities, among over 9 million inhabitants. which the following stand out: Niteroi, São Gonçalo, Petrópolis, Campos y Cabo Frío. Energy sales in 2015 were 11,229 GWh, showing a 0.6% increase over 2014. Of these sales, residential customers During 2015, Ampla provided electricity to 2,996,676 35%, commercial customers represented 19%, followed customers, 4.2% more than in 2014. Of the total, 90% by industrial customers and free customers with 11% are residential, 6% commercial and 4% other users. each. Other customers represented 24% of energy sales. Energy sales in 2015 totalled 11,547 GWh, a 1.1% The number of customers at the end of 2015 increased decrease compared to 2014, with a significant participation to 3,757,651, a 3.7% variation compared to 2014. The of residential customers representing 41% of physical classification by type of customers shows that 76.2% are sales, followed by 19% commercial customers, 14% free residential, 6.2% are commercial customers, and 0.2 are customers, 8% industrial customers, other customers industrial customers, while other customers represent which represent 19% of sales. Since 2003, Ampla greatly 17.4%. emphasises energy theft fight with a 3.5% reduction (from 23.64% to 20.11%). The sustainable reduction is only possible due to the set of positive results obtained with the projects developed by Ampla (use of technology and social performance). For several years, the company has won a number of awards that show our projects’ excellence. However, at present energy losses is still one of Ampla’s major challenges. 2014 ended with an increase of 0.75% over the previous year, from 20.11% to 20.86%, due to the increase of areas of risk within the company’s concession area. Description of Electricity Business by Country 197 Activities and Distribution Projects Energy Efficiency Smart City Búzios Energy efficiency projects comprise actions to promote Progresses continued in 2015 for the Smart City the conscious energy consumption and the changes Buzios project, with regards to the monitoring of smart of equipments (refrigerators, freezers, lamps) and the measurement and automatization, expansion of the use electrical wiring, with an important impact on energy of electric vehicles, strong impact of Solar Challenge consumption and home energy efficiency improvement. (important event of boats powered by solar energy race), In 2015, 13,997 people in Ampla and Coelce benefited management of generation technologies distributed from changes of equipments iniciatives. And 108,373 and intensified the results of investigations performed consumers were benefited from the educational projects by universities and institutions of technology base for conscious consumption (41,075 in conferences and that participated in the project. Regarding the Micro workshops, 30,997 by Community Agents and 36,301 Smart Grid project, being carried out in Ceará, in 2015 by the Coelce in the Neighborhoods program). Projects progresses were made in the planning and negotiation are supported by touring trucks (Ampla Sobre Ruedas with the condominium residents when approved the pilot and Nave Coelce Planeta Futuro), equipped with an Micro Smart Grid project. Also, there was also an intense explanatory model of energy generation, transmission negotiation with subcontractors and suppliers, and the and distribution processes, simulators of consumption work done was related to materials and equipments and interative totems with fun units for all ages. The specifications to be installed in the execution phase. aspect of displacement of the project guarantees the access to information for residents and students in zones far from metropolitan areas. In 2015, the energy efficiency program Enel Brazil, centered its initiatives in the region, which showed higher impact from commercial losses (electricity theft), thus promoting responsible energy consumption initiatives in the population, especially among low-income consumers. During the year, there was a 5.3% reduction of investments for the program, due to the scenario faced by the Brazilian energy sector. The resources invested by distribution companies are regulated and are equivalent to 0.5% of the companies’ net operational revenues. 198 2015 Annual Report Enersis Description of Electricity Business by Country 199 200 2015 Annual Report Enersis MEMORIA ANUAL ENERSIS 2013148AntofagastaTransmissionDistributionGenerationTypeThermoelectricInstalled Capacity182 MWCentral TarapacáTypeThermoelectricInstalled CapacityCentral AtacamaTypeThermoelectricInstalled Capacity64 MWCentral HuascoTypeHydroelectricInstalled Capacity18 MWCentral Los MollesTypeEolicInstalled Capacity78 MWParque Canela I y IITypeThermoelectricInstalled Capacity257 MWCentral QuinteroTypeHydroelectricInstalled Capacity377 MWCentral RapelTypeHydroelectricInstalled Capacity12 MWCentral SauzalitoTypeHydroelectricInstalled Capacity77 MWCentral SauzalTypeHydroelectricInstalled Capacity690 MWCentral RalcoTypeHydroelectricInstalled Capacity34 MWCentral PalmuchoTypeHydroelectricInstalled CapacityCentral PangueBiobío PlantsTypeThermoelectricInstalled Capacity245 MWCentral TaltalTypeThermoelectricInstalled Capacity24 MWC. Diego de AlmagroTypeThermoelectricInstalled Capacity778 MWCentral San Isidro TypeHydroelectricInstalled Capacity89 MWCentral CurillinqueTypeHydroelectricInstalled Capacity40 MWCentral Loma AltaTypeHydroelectricInstalled Capacity570 MWCentral PehuencheTypeMini hydroInstalled Capacity9 MWCentral Ojos de AguaTypeHydroelectricInstalled Capacity106 MWCentral CipresesTypeHydroelectricInstalled Capacity70 MWCentral IslaTypeHydroelectricInstalled Capacity320 MWCentral AntucoTypeHydroelectricInstalled Capacity136 MWCentral AbanicoTypeHydroelectricInstalled Capacity450 MWCentral El ToroLaja PlantsMaule PlantsEnergy Sales15,893 GWhClientsEnergy Losses1.8 millionChilectra5.3%478 MWTypeThermoelectricInstalled CapacityCentral Bocamina I y II478 MWDESCRIPCIÓN DEL NEGOCIO ELÉCTRICO POR PAÍS467 MW781 MW Chile Electricity Generation Enersis participates in the power generation sector through Endesa Chile and its subsidiaries, becoming the country’s most important company in terms of installed capacity, in which Enersis holds directly 59.98% ownership. Endesa Chile and its subsidiaries and jointly controlled companies, in Chile, have a generating capability consisting of 103 units distributed along Central Interconnected System (SIC) and eight units in the North Interconnected System (SING). Enersis Group’s electricity generation in Chile reached 18,294 GWh in 2015, of which was 64.5% hydroelectric. For its part, energy physical sales in Chile totaled 23,558 GWh, 33% of the total sales of the Group in Latin America. Other generation companies in Chile are: AES Gener, Colbún and EC-L. Endesa Chile Energy sales of Endesa Chile and its subsidiaries in the On the other hand, energy sales of the subsidiaries Celta SIC, reached 21,127 GWh in 2015. This volume represents and GasAtacama in the SING, reached 2,432 GWh in 2015, 43% of the SIC’s total sales, including customer sales and representing a participation of 14% in total sales of such net sales in the spot market. Sales to regulated customers electricity system. represented 83%, while 15% were to free customers and 4% represented net operations in the spot market. Description of Electricity Business by Country 201 Operational and Commercial Scenario General Scenario of Operational and Commercial Activity Events that Influenced the Operational and Commercial Performance The Central Interconnected System showed an average An important event that took place in 2015 was the restart hydrology condition similar to 2014, where differences of operations of Bocamina II, which contributed to the SIC were seen between the first and second half of the year, since June, whose operation was interrupted form mid presenting a very dry condition in the first period, with an December 2013 for legal reasons. In fact, the resolution of important improvement in the second semester. In relation the Supreme Court released in November 2014, enabled to the latter, production costs followed the same trend Endesa Chile to develop the optimization project of the between both periods; although in averge were lower than power plant with the purpose of ensure compliance the previous year. with the environmental demands included in the court decision. The project, that counts with the approval of the In that context, higher procurement costs in the first Environmental Authority, (1), considers among its main semester were explained by the prolonged drought that technical and environmental improvements: the coverage impacted the country in the last five years and in particular of coalfields, the installation of advanced technology filters during the first months of 2015, being the driest ever for water suction and online air quality monitoring. When recorded, with the almost total absence of rains in the committing these optimization activities, the Company center-south zone of the country. Additionally, due to received the authorization to restart operations of the the lack of generation of Bocamina I power plant, whose power plant, which coupled with the various activities operation was interrupted to perform works required to with the communities developed in the area (Social Plan fulfill environmental requirements and Bocamina II power with the community of Coronel), constituted an important plant was paralyzed due to court order. milestone for the consolidation of the sustainability of this facility and to bolster the contribution of this power plant During the second semester, supply costs and therefore to the operational margin of the Company. prices of electric power, decreased significantly due to the large improvement of hydrology condition, moving towards On the other hand, during 2015, Endesa Chile signed a normal condition in this time of the year and due to the agreemetns with trade associations of irrigation farmers restart of Bocamina I and II power plants and the operation for the operation of the dams located in the Laja and Maule of the system. River basins, with which they share the use of water. These agreements were also approved by the Hydraulic Works Lower average procurement costs of 2015 compared Division (DOH), dependant from the Public Works Ministry, to 2014, are mainly explained by a general decrease of being the authority that guarantees the administration of fuel costs, the entrance of new offer to the system and dams. These agreements also relate specifically with the the startup of Bocamina I and II units. Also the lower shared use of dams in scarcity conditions (drought), which dynamism of electricity consumption contributed to reduce even though means to provide restrictions for both parts energy prices, whose growth rate was nearly 1%, thus with regards to the original agreements, enables to ease representing a strong decrease with respect to the 2.5% the extractions during the more critical periods (months) accounted in 2014 and even more so when compared to for both parts. The advantages of both agreements are, the average annual growth of del 4.5% recorded in the on one side, to regularize an important aspect of such period 2010-2014. operation, which helps to prevent or reduce situations of conflict between users of these dams, such as those that took place in the last years due to drought conditions registered in the country, and on the other hand, the 202 2015 Annual Report Enersis aforementioned more flexibility has a positive impact in the generation of Endesa Chile in the area and therefore in the operational margin of the Company. The events that Endesa Chile has been facing this year and the previous years, where dry years and other adverse conditions prevailed, allowed to prove the strenghth of Endesa Chile to carry out its operational and commercial activities with high performance, which is explained by the different attributes in these area which are worth mentioning, such as: i).- the Company owns generation facilities with large installed capacity, with diverse technology, competitive un terms of production, and with high operational availability, mainly comprised by hydroelectric power plants and efficient termal facilities, which enables the Company to achieve low average operational costs level; ii).- its commercial policy has been developed in accordance with the generation attributes of its generation facilities and with the conditions that a competitive market imposes, and consistent with the requirements established in the electric legal framework. In this area, the objective of this policy is to harmonize attractive profitability with low exposure to hydrology risk Hydrology Condition in the SIC position, thus conditioning aspects such as: level of energy The year 2015 begun with snow melting of very dry nature contracted, diversification of the customers’ portfolio and and without any rains until early June. Afterwards, rains its pricing policy; and iii).- the generation policy has always were a normal condition for the period, thus the year 2015 have the objective that the facilities have to operate under showed a semi-dry condition. The first two quarters were high quality standards and availability, for whose purpose the driest ones, with accrued exceedance probability of the operational procedures and the required modernization tributaries of 95% and 85%, respectively. This condition has been always consistent to totally fulfill technical and improved during the third quarter, thus resulting in a environmental demands applied established by the electric recovery of seasonal dams levels, which meant to account legal framework. an exceedence probability of 52% for the quarter. In the last quarter, corresponding to the snow melting period, a semi-dry condition of nearly 70% was registered, whose effect together with the previous quarters led at the end to an accrued exceedence probability of tributaries of 75% for 2015, similar to 2014. Description of Electricity Business by Country 203 Generation and Supply Costs in the SIC The hydrology condition that in average was similar to With regards to the electricity generation by input, its worth 2014 is also showed in a generation matrix similar to to highlight that Endesa Chile maintained its leadership the previous year. In fact, the supply for the SIC in 2015, with a 51% share of the total generation, and in the case whose total reached 52,900 GWh, was 49% thermal, of LNG, had a 59% share of the total generation with LNG. slightly lower than the 52% in 2014. Hydrology generation Wind generation reached 144 GWh, represented 8% of was similar to the previous year (45%), and the higher the total wind generation in the SIC. contribution took place during the second semester (61% of the hydroelectric total). With regards to the fuels used During the current period, there was an important for thermal generation, coal was predominant with 27% decrease of fuel prices with respect to 2014. Coal was the of the total generation of the SIC, slightly lower to the main fuel used in 2014, and the average price fell 16%, 30% in 2014; followed by GNL, with a contribution of 16% from US$ 111/ Ton per year in 2014 to US$ 93/ Ton per year of the total and biomass with 4%, displacing diesel that in 2015. LNG was the second main fuel used in the SIC represented 2% of the total. and the main fuel used by Endesa Chile, and its average Regarding the generation of non hydroelectric NCRE, its 370/Dm3 in 2015.(REVISAR CIFRAS) Prices of the other participation increased from 6% to 10%, being biomass liquid fuels, less important in the SIC generation, such as the stronger contributor with the aforementioned 4%, diesel and IFO N° 6 also decreased sharply, around 40%, followed by wind generation with 4% and finally solar with being the international trend in the global markets. Thus, price decreased nearly 33%, from US$ 365/ Dm3 to US$ 2%. the effect of lower prices of fuels, together with a more humid hydrology seen in 2015, compared to the dry years During 2015, the energy generation of Endesa Chile was that prevailed until 2013, has prompted the generation cost 34% of the total generation of the SIC, similar to the reduction of the Company, which had a positive impact on 33% accounted in the previous year. Its contribution to its operational margin. hydroelectric generation was kept at 23%, and physical generation reached 12,000 GWh, in line with the 11,900 In the context of the aforementioned description of the GWh accounted in 2014. For its part, thermal generation of fuel prices sharp decrease, both the generation average Endesa Chile was nearly 5,900 GWh with 11% of the total cost and the average energy price in 2015 fell compared to generation of the SIC, 10% higher than the 5,100 GWh, the previous year. In the case of energy prices, if we use as mainly due to the contribution of Bocamina power plant reference the values of the spot market at a relevant node that restarted operations during the second semester and such as the Alto Jahuel 220 kV substation, an important also due to the higher generation with LNG. In fact, the drop of 32% is observed, compared to the previous year, generation with LNG reached 4,930 GWh with a 9.3% where the average annual price was US$ 135/ MWh in share, 9% higher than the contribution of 4,550 GWh 2014, decreasing to US$ 92/ MWh in 2015, being consistent accounted in 2014. Coal generation reached 956 GWh, with the decrease of fuel prices. Nevertheless, its worth that is, 2% of the total, however considering the lack of to highlight that prices during the current period were very the generation of Bocamina power plant during the first different between the first half and the second half of the half of the year. Generation of Endesa Chile with oil was year, where the average prices were US$ 135/ MWh and much lower, amounting barely to 35 GWh, less than 0.5% US$ 48/ MWh, respectively. Worth is highlight that prices of the total. recorded in the second half of the year weren’t observed since 2006, due to more humid hydrology conditions. 204 2015 Annual Report Enersis Liquified Natural Gas (LNG) In February 2015 the commercial operation of the first On the other hand, and with regards to the LNG expansion of the Quintero LNG Terminal started, with which commercialization with trucks, during 2015 the construction the regasification capacity of the power plant increased of four satellite regasification plants (PSR) begun, under by 4.8 MMm3/day, enabling to reach the Terminal’s total long-term supply contracts that Endesa endorsed with capacity to 14.4 MMm3/d. the gas distribution companies GasValpo (to supply to La Serena-Coquimbo, Los Andes and Talca) and Intergas In connection with the above, Endesa Chile contracted (to supply to Temuco). The first of these plants was additional regasification capacity of 2.1 MMm3/d, reaching inaugurated in October in Talca, becoming the first PSR of a total of 5.4 MMm3/d (37% of the total capacity of the the country dedicated to gasification in a city that wasn’t Terminal), which will enable the Company to supply the linked to the gas pipeline network. regasification requirements for its power plants and to develop new generation and commercialization projects In addition, in the LNG trading field, Endesa Chile performed based on natural gas in the central area of the country. the second international operation, selling through Endesa Energía one LNG shipping to a buyer in Argentina. From the gas commercialization point of view, during 2015 significant milestones were achieved. From one side, in During 2015, the Quintero Terminal downloaded 39 the North Interconnected System (SING) the Contract shippments, containing 3,130 MMm3 of natural gas, 1.200 for the Use of the Terminal (TUA, for its English acronym) MMm3 of which were for Endesa Chile. Worth is to highlight was signed with GNL Mejillones, enabling the download that nearly 660 MMm3 of gas from other Terminal’s partners of the first LNG shippment of Endesa Chile in the north. were also allocated to electricity generation, through the This operation enabled the subscription of Purchase-sale sale to other generators of the SIC. Contracts of gas with industrial customers in the north of the country and the use of that fuel in the units owned by Endesa Chile connected to the gas pipelines network in the north (Taltal and GasAtacama), thus leading Endesa Chile to become the main industrial trader of gas in the north area of the country. Description of Electricity Business by Country 205 Governmental Policies that Impact the Electric Sector Regulatory Aspects Related to the Electricity Sector: Bills, Regulations and Technical Standards In accordance with the Energy Agenda, by mid April, In the context of Independent Electrical Systems’ the Energy Ministry published the results of the basins Interconnection Law (Law No. 20,726) of 2014, the of the country study together with Universidad Católica construction of the project for the electric interconnection of Chile and Teco Group Consortium. Being aware of the of the SIC and SING systems begun, project being importance to develop projects with its own resources such developed by the company E-CL, and consists on the as hydroelectric resources and the difficulty to carry them construction of a double circuit line of 500 kV, with 1,500 out at present, the object of the study is to provide more MW capacity, which will connect the SING from S/E Los certainty to the developers of projects and the community, Changos, located in Mejillones, with the SIC in S/E Nueva with regards to the way to move forward in hydroelectric Cardones, located near Copiapó. This project started up development, to establish clearer processes, to enable to pursuant to the Trunck Transmission Expansion System achieve more symmetry of information among the actors Plan, for the period 2014 - 2015, which was prepared by the involved, with the purpose of reaching agreements for Energy National Commission (CNE). Its commissioning is its execution. Among this dynamic, the Energy Agenda planned for the second semester of 2018. proposes to carry out an energetic territorial planification for the future hydroelectric development based on Law 20,805 was enacted on January 29, 2015, which technical, environmental, economic and sociocultural modified the bidding process for distribution companies’ criteria, for whose purpose this Agenda also is commited energy supply (EEDD), whose purpose was to improve to perform a mapping and global analysis of the basins the bidding system, unlock the investments in the sector, in the country, being the objective of this study, in order increase competitivity and decrease energy supply to identify, through a participatory process, the priority prices. The main amendment of this law was that the basins. State (CNE) assumes the responsibility of the biddings and has to ensure the energy supply of distribution As a result of the study, in the main twelve basins located companies for regulated customers. Although biddings between Maipo (Metropolitan Region) and Yelcho (X are defined for long-term supply, the CNE may perform Region) the hydroelectric potencial is of almost 11,000 short-term biddings to solve the problem of distribution MW. In the three basins of the Aysén Region, the potencial companies without contracts. The Law also considers is nearly 4,500 MW. To continue a further detailed analysis special treatments for biddings that are backed up by new of the basins for the second stage, and considering the generation projects and by type of generation technology limited resources available for that purpose, priorities were (NCRE). Within the framework of this law, in April the defined in the basins chosen for the next step: BioBío CNE published the final Biddings Technical Report, River, Yelcho River, Maule River, Toltén River, Puelo River, which contains an analysis of proyections of demand of Valdivia River and Bueno River, which together represent distribution concessionary companies for public services a total of 8,200 MW. It’s expected that this second stage subject to the obligation to perform bidding for the period will be completed at the end of the first semester of 2016. 2015-2030. In addition, it includes the analysis of the expected situation of potential offer of electric energy for Because this study is concentrated on the basins where that important period and a forecast of the energy supply Endesa Chile owns operating facilities and water rights bidding processes to be performed within the next to develop future projects in some of these basins, its four years. As a result of this study, the CNE prepared important to keep an active participation in this process, and published the bidding bases for two energy supply to ensure that its projects reach the sustainability and processes for distribution companies. The first one took profitability needed to materialize. place in May, for a total supply of 13,750 GWh/year for regulated consumption starting in 2021 and in 2022. In both cases, for a twenty-year period and the bidding will 206 2015 Annual Report Enersis take place in April 2016. The bidding bases for the other proposes a new remuneration of transmission scheme processes were published in June for an energy supply of based on fixed payments payed by the demand. In the 1,200 GWh/year, with an offer structure of hourly blocks case of the Independent Coordinator, the project modifies very adjusted to the NCRE generators’ needs, whose its current structure, ordering the following: i) –Modifies consumptions will begin in 2017 for a twenty-year period, the Board structure to a governing Board, comprised by which was awarded in October 2015, and the average seven members and appointed by a special Committee price was nearly US$ 79/ MWh. of Nominations (six members, mainly coming from state bodies) and ii).- Maintains its current responsibility to In June entered to Congress the Tariff Equality for coordinate the system operation and to determine the its legislative process the draft bill that proposes a transfers of the spot market and adds as new functions mechanism to narrow the gap between residential the monitoring of competition and guarantee the payment customers that pay high tariffs and those who pay low chain and iii).- Assumes the interconnection SIC-SING, so tariffs. This project, proposes that the highest bill can’t it proposes an organism for both systems. This Law also be higher than 10% of the average bill at national level. includes a regulation for the Supplementary Services The objective is that the discounts will be financed by and a Strategic Planning system to be performed each all regulated customers except residential customers, five years for a thirty year horizon, which will include the who will only meet this financing for consumptions over definition of long-term scenarios, identifying development 180 kWh/month for bills below that average. The project poles, citizenship participation in this activity and others. also proposes to establish a regulated tariff discount An aspect of this project is that it greatly increases the for districts that are energy-intensive in electricity technical functions of the CNE. generation according to its installed capacity and number of customers, discounts that will be absorbed by those Worth is to highlight that draft bill has been submitted districts that are not energy-intensive. With regards to for a public discussion process by the CNE, in which the definitions of this project, energy generation will not Endesa Chile had an active participation either directly participate in this compensations system. At the closing participating in some committees organized by the CNE of this period, the project is under the First Constitutional or indirectly through the Trade Association of Chilean Procedure (Senate) with the general approval of the Generators, whereof Endesa Chile is member. Senate in October. In line with the commitment assumed in the Energy Agenda, in August entered to Congress for its legislative process the draft bill that establishes the Electricity Transmission System and creates an entity for the Independent Coordination of the National Electricity System. For the case of electricity transmission, the project considers a new functional definition of transmission systems that replaces the current definitions of Trunck, Sub transmission and Additional by National, Zonal and Development Poles and Dedicated, whose declared objective is to promote the execution of sufficient transmission capacity at the national and zonal levels, thus enabling the development of generation according to its location and technology. Besides, it Description of Electricity Business by Country 207 Endesa Chile’s Actions during 2015 For Endesa Chile, to maintain the high availability, standards and useful life assurance of generation efficiency and safety standards of the operation of its units, in July the generator’s stator winding of Isla power plants has been an ongoing concern, in order to power plant’s unit No.1 was changed. maintain its leading position in the electrical industry. Its > During 2015 the practice of annually certifying the excellent operational level can be confirmed, among other capacity for autonomous start continued, for the things, by the following events occurred during 2015: generating units that have this distinctive feature. > All generation facilities are certified with ISO 14,001 capacity for autonomous start were certified. and OHSAS 18,001 standards, except Bocamina II, > In May concluded the overhaul of the generator of which is planned to obtain the certification in 2016. unit 1 of Bocamina power plant. This included the > In the context of the units’ modernization, specifically replacement of the stator winding of the rotor’s During the year, 27 units out of the 33 units with the regarding remote hydraulic units’ telecontrol, during retention rings and the generator excitation system 2015 Cipreses, Isla and Ojos de Agua power plants including the excitation transformer. Additionally the became remotely controlled from Endesa Chile’s turbine’s quick-closing valves and all the pipelines of National Exploitation Center (CEN). This power plants the turbine’s condenser were replaced. added up to Pehuenche, Curillinque, Loma Alta, > During the second semester the overhaul of the gas Rapel, El Toro, Antuco, Abanico, Los Molles, Sauzal and steam turbines of the two combined cycles of and Sauzalito power plants, which were already being San Isidro power plant were performed and the telecontrolled from the CEN. This means that the development of the inspection program through non- Company remotely controlls, from its headquarters, destructive essay techniques to the two recovery 2,280 MW of hydraulic generation, representing boilers (HRSG) and the piping of steam turbines. approximately 66% of Endesa’ hydraulic power > In December, in the context of using the most plants (representing 35% of the installed capacity of advanced available resources for the maintenance and hydraulic power plants in the country). security of important works such as reservoir dams, > In line with the policy of improvement of availability an inspection to the Ralco dam was carried out with a 208 2015 Annual Report Enersis ROV, a robot that operates under water and which is remotely operated from the surface. This dam is the In the Commercial Field highest of Endesa is Chile, so the ROV sank to more Commercial actions carried out by Endesa Chile during 2015 than 100 meters deep, therefore informed that Ralco were in line with its commercial policy, whose the purpose dam is in good preservation and safety conditions. was to harmonize the joint achievement of the following > In the context of removal of asbestos project in every objectives: maintain the leadership within the industry, generation power plant, in March 2015 the withdrawal properly manage the company risk and its profitability within of all asbestos present in Bocamina power plant the challenging condition for the SIC in 2015, comply with the was completed, thus the power plant was declared actions of its permanent customer loyalty policy and achieve asbestos free. Additionally, the Company started the greater efficiency in internal commercial management. The studies to withdraw the asbestos from the Tarapacá main actions carried out are mentioned below. and Huasco power plants and the facilities of Ralco and Pangue power plants to be carried out in 2016. With tegards to the contracts management, the Company > In the context of the Social and Technical Plan for reached an agreement and signed new energy supply Bocamina power plant,  high technology filters were contracts with Inchalam, Masisa (Mapal plant), CGED for installed in the ocean water inlets for the cooling some of its free custoemrs and ACF Minera. On the other of both units. This was done with the purpose hand, and with regards to what was contractually planned of minimizing the biota suction from the marine during 2015, all of the following energy supply contracts environment. concluded on December 31, 2015: Compañía Minera del > In the first semester the works related to the Pacífico; Compañía Siderúrgica Huachipato, Compañía modification and replacement of the equipments of Exploradora de Minas; and Contrat with CGED for some free Unit N°1 of Bocamina power plant, thus enabling customers. the compliance with the NOx emmissions standars, as established in the new emmissions regulation. In other area, the Company also reached agreements for The project mainly consisted in replacing the natural gas supply with Codelco, Soquimich and Altonorte, original burners by low NOx burners, modifying the coal mills, the air preheaters, the air distribution with which Endesa Chile became leader in the industrial market in the north of the country (Norte Grande). Lkewise, system and implementing a new control system and during 2015 the supply of demineralized water to Molyb, instrumentation of the boiler. subsidiary of Codelco, in Mejillones, begun. > In the first semester the works rekated to the modification and replacement of the exhaust gases’ With regards to loyalty management, in September there desulphurisation system of Bocamina plant’s unit was a visit to Rapel power plant with customers. During No.1 were completed. This desulphuriser includes December, a customers’ satisfaction survey for 2015 was the installation of equipment to absorb SO2 from the carried out, whose result was a Customer’ Satisfaction Index boiler’s gases using sprayed lime, to be extracted as a of 16.8 points, which indicates that customers maintain a solid stored in hoppers for later disposal. positive perception of service, even better than 2014 where > During the year the Company started the installation the result was 16.6. The aspects with better evaluation, same of equipments of the desulphuriser system for as the previous years, were those related to the commercial Tarapacá power plant. The commissioning of the staff which indicates a good opinion in relation to the clients’ desulphuriser is planned for the stoppage of the executives; and the billing process which is increasingly more power plant previewed for April 2016. complex. Description of Electricity Business by Country 209 Endesa Chile’s Projects under Construction and Optimization Los Cóndores Proyect Los Cóndores proyect is a run of the river central > In January 2015 the first tem meters of the Ventana Lo hydroelectric power plant, located in San Clemente Aguirre Tunnel were completed. district, Talca Province, in the Maule Region, consists of > In April 2015 the digging of the Access Tunnel of the the construction of a 150 MW nominal installed capacity, Platform Cavern was completed (390 m long). through two Pelton vertical shaft units, with 28 m3/s > In July 2015 the tests for the reduced model of turbines maximum flow, 48% capacity factor and 642 GWh expected were carried out. annual average power. The project includes a 12 km long > In August 2015 the digging of the Auxiliary Galley for headrace tunnel, a surge tank (127 m), a vertical pique (470 the Discharge Tunnel was completed (141 m long). m), a lower pressure tunnel (1.7 km) and an underground > In September 2015 the diggings of the discharge powerhouse, where the generating units will be located. tunnels of both generating units that connect the The plant will be connected to SIC through an 87 km long platform cavern with the main discharge tunnel of the transmission line (2x220kV) at Ancoa Substation (S/S). power plant were completed. > In November 2015 the digging of the platform cavern During July 2015, the tests for the reduced model of the was completed. turbines were carried out in the laboratory of the company > In December 2015 the assembling outside of the Voith Hydro in the city of Heidenheim in Germany. The tunnel of the complete shield of the tunnel borer was results were satisfactory thus releasing the hydraulic completed, with which the preparations of logistics for design, and then the detail designs of the equipments the entrance of the equipment inside the tunnel were for main generation, process that will take approximately initiated. eight months, started. > In December 2015 70 fundations for transmission lines structures were completed, then the construction In August 2015 Endesa Chile participated in the assembling advance progress is 13.55% and 55.8% of supplies. tests in the Robbins Company factory (Tunnel Boring Machine), located in Ohio, United States, used for the construction of the adduction tunnel of the project, under the supervision of the civil works contractor Ferrovial Agroman. By the end of 2015 the total componenets of the tunnel arrived to the site of the project. With regards to the transmission line, currently the Company has servitude agreements signed for the equivalent of 218 structures or 73.6% of total structures. Also, the notification and publication process of the Definite Electricity Concesion (CED) begun, that after on December 9, 2015 the Superintendency of Electricity and Fuels (SEC) issued a resolution to grant admissibility to the concesion presented by Endesa Chile. The main projects’ progresses in 2015 were the following: 210 2015 Annual Report Enersis Bocamina Plant Second Unit’s Optimization The expansion project of the second unit of Bocamina power During May and June, the finishing works of the power plant, located in Coronel district, Concepción province, in plant corresponding to the “Commissioning Completion the Biobío Region, consists of the installation of a 350 MW of Mechanical and Electric pendings” contracts were thermal coal-fired unit, next to the existing Bocamina power completed, and was awarded to the company Mavitec, and plant, which runs on pulverised bituminous coal. The new the “Painting and Isolation Completion of Bocamina II” was unit is connected to the SIC’s Lagunillas S/S, developed by awarded to the company Akeron Caf. Transelec. On January 30, 2015 the Environmental Evaluation Service power plant was commissioned, and became available for (SEA) received the Adenda N°2 of the “Optimization of the dispatch from the Centro de Despacho Económico de Carga Thermoelectric Bocamina Second Unit Power Plant” project del Sistema Interconectado Central (CDEC-SIC), after the and on April 2, 2015 the SEA released the Environmental operational testing periods that started on the first week On June 30, 2015 at 19:30 hrs, the second unit of Bocamina Qualification Resolution (RCA), approved on March 16, 2015 of June. by the Environmental Evaluation Commission of the Biobío Region. Regarding legal matters, on January 29, 2015 Endesa Chile approved the agreement with the Tecnimont- Afterwards, after the resolution issued on May 20, 2015 by SES Consortium, through which arbitration suited in the Superintendency of the Environment (SMA), where it the International Chamber of Commerce (CCI), for the approved the request of qualifying the filters solution and compliance with the obligations agreed in the “Expansion suction meshes of the cooling waters, Endesa Chile started of Bocamina Power Plant Project” contract. the process of restarting operations of Bocamina facilities. Description of Electricity Business by Country 211 Endesa Chile’s Projects under Study Neltume Hydroelectric Power Plant Taltal, Combined Cycle Implementation The project consists on the installation of a steam turbine to transform the existing gas open cycle plant into combined cycle at the Taltal power plant, enabling the use of steam generated by gas turbines emissions to produce energy, The Neltume project is located in Los Ríos Region (XIV thus greatly improving its efficiency. Taltal power plant is Región), in the upper part of the basin of the Valdivia River. located in the Antofagasta region (II Region). Currently The Neltume project consists on a 490 MW run-of-the-river the existing power plant has two gas turbines of 120 MW hydroelectric powerplant. The plant will connect to the SIC (net capacity) each. The additional power of the gas turbine from Neltume to the Pullinque area by means of a 220 kV would reach approximately 130 MW and, therefore the double circuit transmission line. Taltal power plant would add up a total capacity of 370 MW On December 29, 2015, the Company withdrawed the through the existing line of 220  kV, double circuit, Diego (net). The energy generated will be delivered to the SIC Environmental Impact Study (EIA) of the power plant, which de Almagro – Paposo. was under Environmental Evaluation at the Environmental Evaluation Service (SEA) of Los Ríos Region. This decision In December 2013 the Environmental Impact Statement was taken for the Neltume power plant project only and (Declaración de Impacto Ambiental: DIA) was submitted does not include the transmission line project, which is for processing, which environmentally optimises the being analyzed at the SEA. project. The main modification was the replacement of the seawater cooling system originally considered with a The new design for a future project will require a series of dry cooling system with aerocoolers. During the second additional technical and environmental studies, process that semester, the Adenda No. 2 was submitted to the SEA, will carry out generating collaborative spaces and common which will provide answers to the round of questions visions, in every possible way with the communities and made by such entity after the submission of the first local authorities. The purpose Endesa Chile is to develop Adenda. In the third quarter, the SEA issued the third set the project harmoniously with the geographical, social, of observations (only three of them), and Endesa decided and environmental context, in line with the energy to postpone its answers (Adenda No. 3) until the end of requirements of the region and the country. 2016, looking forward to create spaces for dialogue and In the social area, Endesa Chile has established a model collaborative and transparent relationship to move ahead of permanent work with the communities and sites in agreement with the communities. where power plants and projects are located, supporting tables and awarded funds, being the community and its The project is financed with resources generated internally. collaborative work with the community, thus building a members who define which projects to develop based on its interests and needs. 212 2015 Annual Report Enersis Land Reserved for Future Projects As of December 2015, Endesa Chile owns approximately 250 hectares of real estate (land) assigned for thermoelectric and hydroelectric projects. These assets are located in Atacama Region (208.9 hectares) and in Los Lagos Region (42 hectares). Electricity Distribution in Chile Enersis participates in electricity distribution through its subsidiary Chilectra, in which it has 99.1% direct interest. The consolidated market share of our distribution subsidiaries in Chile, Chilectra, Luz Andes and Colina, was nearly 40%. Chilectra’s concession is a high-density consumption area, since it concentrates a large proportion of the country’s population and entrepreneurial, industrial parks, small industry and commercial activities. Other groups of electricity distribution companies that participate in the electrical system are: Chilquinta Energía, CGE Distribución, Sociedad Austral de Electricidad and Empresa Eléctrica de la Frontera. Chilectra the total, 89.5% are residential customers, 7.8% are commercial customers, 0.7% are industrial customers and 2.0% other customers. Likewise, during 2015, Chilectra sold 15,893 GWh to its final customers, an increase of 1.3% compared with 2014. During the year, Chilectra successfully fulfilled the Losses Plan developed and implemented to keep losses at economically acceptable levels. These losses remained almost unchanged with respect to 2014, recoding as of December a TAM indicator of 5.31%. Distribution tariffs are set every four years, on the basis of cost studies conducted by specialised consulting firms. Chilectra is the largest electricity distribution company in The National Energy Commission (CNE) establishes typical Chile in terms of electric energy sold. It operates in 33 distribution areas, and selects a reference company from communes in Metropolitan Region and its concession area each area, from which the consultants must design an covers more than 2,105km2, including the areas covered efficient model company. by its subsidiaries Empresa Eléctrica de Colina Ltda. and Luz Andes Ltda. The last distribution tariffs setting are in force since November 2012 for the period 2012-2016. In 2015, the Company delivered electricity service to 1,780,780 customers, 2.5% more than in 2014. Out of Description of Electricity Business by Country 213 Activities and Distribution Projects Intelligent Networks Automation of Distribution Monitoring in Interconnection Substations in Medium and Low Tension > 155 new equipments telecontrolled to the Medium New generation clean and renewables technologies, Tension Network were incorporated, reaching a total of distributed at the Medium and Low Tesion levels, such as 700 operating units from the Operations Center of the photovoltaic generation systems and the protection systems, System. > The first phase of the Telecontrol of the Medium Tension System (STM), corresponding to a SCADA dedicated for represent an impotant contribution for the company in terms of CO2 reduction and to open new opportunities of energy sources. Its incorporation to the network, being possible the control and remote supervision of the telecontrolled thanks to the existing regulatory framework since 2014, has equipments installed in the network. leaded the implementation of adjustments to procedures > It was also developed an engineering to perform a and field works protocols to guarantee the security of the Telecommunications propietor DMR (Digital Mobile staff and the facilities. Radio) focused on coverage and availability of communication links between MT equipments and the In addition, thanks to the upgrade of the measure plataform Control Center expansion, to be implemented in 2016. ION Enterprise, has been possible to perform monitoring in the interconnection substations, measuring daily the All of the above, together other related activities, are gases, temperature and humedity of the Transformers of enabling our cutomers to enjoy high quality stardards of the SS/EE Cerro Navia, Los Almendros, Buin, Brasil, Lord service of international level for failure duration. Cochrane, El Salto, Vitacura, Chena, Lampa, Santa Raquel, Macul (unidad 6), Cisterna (Unidad 3), San Cristóbal and El manzano, reaching 8,021 records made. In this field, Chilectra developed and published during 2015 technical regulations for signaling and security of the Medium and Low Tension levels, considering these new work conditions. Radiofrequency and Telemetry Customers Reading The meters reading process through Radiofrequency (RF) continued in 2015, thus completing the reading for 30,606 customers and a total of 1,320 closed users (not read), increasing the numbers of readings through this tool compared to the previous year, which provides a solution for the problem of reading meters in residences without inhabitants, and also decreases the accidents rate, because this technology is able to perform remote readings, thus avoiding the risk of performing high-rise readings. With regards to the telemetry customers, in 2015 it was able to read a total of 225,412 users and 890 closed. This technology enables the remote reading of meters and the possibility to identify irregularities, thus enabling a fast solution to maintain excellence in service. 214 2015 Annual Report Enersis Energy Efficiency Projects “Full Electric” and “Solar Electric” Solar Projects During 2015 various “Full Electric” agreements were In the context of the collaborative work of Chilectra and the signed with the real estate companies Santolaya, Cidepa, Ministry of Energy, there were various instances throughout Euro, EBCO, Sinergia, among others. In 2015 sales of this 2015. There were worktables to evaluate the market, deliver real estate product reached approximately $1,800 million information for specific studies and for the development of net. information platforms for the community in general. Also a “Full Electric 2.0” commercial agreement was Other line of work was developed with the objective signed with Inmobiliaria Cidep. This concept comprises of developing new financing instruments including the hot water for sanitary use solution through heating segment MiPymes. bombs, in addition to the delivery of electricity service for each apartment, and a public lighting solution, all From the publishing of the Net Billing Law, which regulates included in only one building. This project will become the customers’ self-generation and the energy injection to one of the most important in relation to the hot water for the distribution network, Chilectra maintains photovoltaic sanitary residential use in Santiago. solutions available for residential customers. Also the Company developed a packed offer for non-residential At the end of 2015 it were agreed various “Full Electric” customers with power capacities ranging from 4,5 kWp, 13 with real estate companies, to be carried out in 2016. kWp and 17 kWp. Among the real estate and construction companies, features Cidepa, Santolaya, Suksa, Fundamenta, among Worth is to highlight the commercialization of photovoltaic others. solutions for industrial customers from services and residentials sectors. The Company has already accrued In 2015 Full Electric apartments represented 43.6% of 96,5 kWp of installed capacity during 2015 on photovoltaic the new apartments market built in Santiago. As such, as panels, generating electric power with renewable sources. of December 2015 there were nearly 105,000 Full Electric apartaments in the Metropolitan Region, mainly in the In the context of the Net Billing Law, Chilectra has put into Central (Downtown) and East Central districts. service the connection of 23 customers to the network, among which Colegio Suizo stands out as the first connected customer, and the Teletón Institute. Description of Electricity Business by Country 215 Chilectra Application for Smartphones In the context of mobile phones applications, which > Payment of electricity bill. provides a variety of functions for customers in their mobile > Redisign of the application so any user may have accesss phones, in addition to the fuctions that the application to its functions. already offers, such as: billing summary, contact with the > Simplificación of Internet navigation. Company, supply status, access to our social networks, > Complete incorporation of energy supply information, reading input, and has incorporated: including monthly consumption data, payments and downloading of the bill. > Send the payment receipt via email. 216 2015 Annual Report Enersis Description of Electricity Business by Country 217 218 2015 Annual Report Enersis MEMORIA ANUAL ENERSIS 2013158BogotáBarranquillaMedellínNeivaCaliTransmissionDistributionGenerationTypeThermoelectricInstalled Capacity236 MWCentral TermozipaTypeThermoelectricInstalled Capacity208 MWCentral CartagenaTypeHydroelectricInstalled Capacity277 MWCentral ParaísoTypeHydroelectricInstalled Capacity150 MWCentral Darío ValenciaTypeHydroelectricInstalled Capacity18 MWCentral LimonarTypeHydroelectricInstalled Capacity20 MWCentral TequendamaTypeHydroelectricInstalled Capacity35 MWCentral Salto IITypeHydroelectricInstalled Capacity20 MWCentral CharquitoTypeInstalled Capacity325 MWCentral La GuacaTypeHydroelectricInstalled Capacity541 MWCentral BetaniaTypeHydroelectricInstalled Capacity400 MWCentral El QuimboTypeHydroelectricInstalled Capacity1,213 MWCentral El GuavioEnergy Sales13,946 GWhClientsEnergy Losses2.9 millionCodensa 7.3%DESCRIPCIÓN DEL NEGOCIO ELÉCTRICO POR PAÍSTypeHydroelectricInstalled Capacity18 MWCentral LagunetaHydroelectric Colombia Electricity Generation Enersis participates in electricity generation through Endesa Chile and its subsidiary Emgesa, in which it has, directly and indirectly, a 37.7% shareholding (economic participation). In 2015, its installed capacity represented 21% of the electricity generation capacity of the country, with the incorporation this year of the hydroelectric power plant El Quimbo. The electricity generación of the Enersis Group in Colombia reached 21% of the total generated in that market. For its part, energy physical sales represented 19% of total sales. Other generators connected to the Colombian electrical system are: Empresa Pública de Medellín, Isagen, Corelca, EPSA and Chivor. Emgesa On September 1st, 2007 the merger of Colombian which is El Guavio, 1,213 MW, the largest hydroelectric companies Emgesa S.A. E.S.P. and Central Hidroeléctrica plant in the country. Out of the thirteen existing plants, de Betania S.A. E.S.P. was carried out, leaving the latter as eleven power plants are hydroelectric and two are thermal. the absorbing company, which changed its name to Emgesa S.A. E.S.P. Net generation was 13,705 GWh, while total sales reached Emgesa is the largest electricity generation company in Colombia, located near the city of Bogotá. It comprises 13 power plants with total 3,059 MW installed capacity, among 16,886 GWh. Description of Electricity Business by Country 219 Activities and Projects Favourable Hydrologic Context for Emgesa in 2015 In 2015, electricity supply in Colombia, similar to 2014, of 2,817 $/kWh (in October 5, 9th period). This behavior presentedy relatively dry conditions, which was reflected prompted that the CREG established a roof for exchange in the 89.6% hydrologic inflows in the reservoirs of the price (75% of the cost of the first stage of rationing - Res. National Interconnected System (Sistema Interconectado CREG 172 of 2015). Nacional: SIN), compared with historical average (in 2014, hydrologic inflows were 93.3% compared with In this context, the variable margin of Emgesa for 2015 was historical average). Hydrologic inflows were lower than COP $1,918.3 million, 3,1% higher than the one recorded historical average, together with the expectation of El in the same period 2014. This result was benefited by an Niño phenomena occurrence, which began spreading with annual generation of 13,705 GWh, showing a 0.5% with greater force from September, caused a significant increase respect to the previous year. in exchange prices. Due to the latter, in 2014 average price was 378.2 $/kWh (increasing 68% compared to 2014) mainly Despite the hydrology conditions of the System, the influenced by the high prices present until October 17. Its hydrology of Guavio was 116.9% with respect to historic worth mentioning that exchange price reached a maximum average. Effective Maintenance Management of Generation Power Plants and Production Management Milestones in 2015 In 2015 net energy generation increased 0.8% with respect plant generated 6,603 GWh (∆+5.8% of the record accounted to 2014. This results from an effective technical management in 2012 of 6,241 GWh) thanks to the development of special of generation power plants including adequate planning and projects for the optimization of hydric resources, Termozipa the execution of preventive and corrective maintenances. The power plant generated 1,150 GWh (∆+15.9% of the record Total Availability Index of the generation matrix was 91.2% in accounted in 1997 of 992 GWh) and Cartagena power plant 2015, increasing +0.3% over 2014. generated 362 GWh (∆+50.8% of the record accounted in Among the important milestones of production management the effective maintenance management of the power plants in 2015, its worth to mention that three of our generation power with the adequate response to the National Interconnected plants exceeded their historic annual generation: Guavio power System due to El Niño phenomenon. 2010 of 240 GWh). The thermal generation growth reflected 220 2015 Annual Report Enersis People’s Action Sentence for Bogotá River In April 2014 the second instance ruling was known, in which the State Council resolved the people’s action aimed at sanitation of River Bogota River and Muña reservoir. The most important aspects of the sentence in the interests of Emgesa are the following: > It was determined that Emgesa has no responsibility Desarrollo Sostenible: MADS), in coordination with the for environmental damage in River Bogota’s hydrologic Institute of Hydrology, Meteorology and Environmental resource. Studies (Instituto de Hidrología, Meteorología y > The alternative selected by the court for Estudios Ambientales: IDEAM), was ordered to develop decontamination of River Bogota is compatible with and adopt, within 24 months, a specific methodology the electricity generation process. for the estimation of environmental and ecological flow > The ruling recognises and validates the agreements of River Bogota. and conventions signed and the already determined > Emgesa and the Regional Autonomous Corporation of resources for the construction of Canoas treatment Cundinamarca (Corporación Autónima Regional: CAR) plant and pumping station. Emgesa and Empresa de were ordered to coordinate, with Empresa de Energía Acueducto y Alcantarillado de Bogotá (EAAB) shall de Bogotá (EEB), the performing of all necessary comply with the Interagency Agreement 9-07-10200- activities for the operation and maintenance of Muña 0688-2011 (Contributions for the construction of reservoir (dredging, sludge disposal, operation and Canoas Pumping Station). maintenance of the aeration system, harvest and > Emgesa was ordered, for the duration of the waters’ disposal of water hyacinth). concession for power generation in Muña reservoir, > Due to the above, in 2015 together with EEB and in to finance the operation and maintenance of Canoas coordination with CAR, operations and maintenance Pumping Station. activities at Muña dam were carried out (dredging and > It was stated that the difference in the updating of the sludge disposal, maintenance of borders, monitoring, economic contributions made under the conventions among others). In the same sense, CAR granted a and agreements subscribed for the financing of period of 18 months to develop an environmental works, activities, plans, projects and programmes for management plan for the dam. the integral management of River Bogota ‘s drainage > With regards to the lifting station Canoas, works were basin, will be paid by each of the entities involved, related to the final revision of sheets to start the bidding in proportion to their participation and commitments process to hire the engineering design required for the made therein. construction of the Lifting Station, equipment supply, > The Ministry of Environment and Sustainable tests and start-up, and the bidding to be carried out by Development (Ministerio de Medio Ambiente y Empresa de Acueducto de Bogotá in 2016. Description of Electricity Business by Country 221 Water Concessions’ Management for Electricity Generation During 2015, arrangements were made with the Regional Power Plant Capacity MW Autonomous Corporation of Cundinamarca (Corporación Autónoma Regional de Cundinamarca, CAR) for the modification and expansion of the Bogotá River concession. As a result, it was delivered to CAR a clarification to the concession modification request performed in 2011. The argument for the modification is to count with the required resources to leverage the maximum capacity of generation Guavio Guaca Paraiso Betania Charquito Limonar Tequendama 1,213 325 277 541 20 18 20 power plants that Bogotá River uses. Dario Valencia 150 Concessions’ Completion Date May 27, 2028 July 30, 2018 July 30, 2018 October 13, 2038 July 30, 2018 July 30, 2018 July 30, 2018 July 30, 2018 Port Society in Cartagena- SPCC After the 12 month deadline from the subscription of the contract. On December 16, 2015, the Managing Board Amendment Otrosí No. 1 of the Port Concession Contract of SPCC authorized the investment to urgent purchase No.006 between the National Infrastructure Agency the new barge, taking into account that currently its not (ANI) and Sociedad Portuaria Central Cartagena (SPCC) possible to receive fuels by sea due to the bad condition on December 22, 2015, and considering that at that date of the Jupiter barge. there wasn’t any pronouncement made by the competent environmental authority CARDIQUE with regards to Finally, at the meeting held between SPCC and ANI on the resolution for the authorization of the Environmenal December 9, SPCC explained to this entity the energetic Management Plan for the start-up of construction works current situation that the thermal generation power plants of the dock, notwithstanding the due diligence carried that operate with liquid fuels are going through, such is the out by SPCC for that environmental formality, the SPCC case of Emgesa’s Cartagena power plant, and resolution negotiated with ANI the relocation request for the 109 of the CREG that may compromise the income contractual investment schedule for one more year. for Reliabiliy Charge for these power plants since 2019. This will result in a threat for SPCC, because its only (or On the other hand, ANI has requested the SPCC the main customer) won’t be able to operate in the future urgent presentation of the floating dock maintenance and therefore, a 2 million dollar investment will not be plan (Jupiter barge) delivered in the zone of public use justified for the construction of the dock as included in the of the concession area, due to its deterioration and bad concession contract when facing the current uncertainty. condition, considering that this asset should be recovered During 2016 there will be a review with the ANI of the by the concessionaire and reversed (INVIAS) in good alternatives of the SPCC to prevent form incompliance of condition once the fixed dock is finished as stipulated in the concession contract and the investment plan agreed. Gas Commercialization During 2015 the entrance of Emgesa to the Gas wellheads (Secondary Market). Additionally the long-term Commercialization market was consolidated, reaching total gas supply (until 2020) of the Cusiana-Cupiagua fields was sales of 55 Mm3 and a variable margin of USD 0.6 thousand, assured and Clarinete 1, and also the Company obtained serving nine industrial customers (Non Regulated) the signature of sale contracts of final customers in a high in Bogota and Manizales, and thirteen customers in percentage for this same period. 222 2015 Annual Report Enersis El Quimbo: Project and Commissioning El Quimbo project is located south of Huila department, southeast of Bogotá, and feeds from the flow of Rivers Magdalena and Suaza. The project will be a run-of-the-river plant with 400 MW installed capacity, with an estimate average generation of 2,216 GWh/year. In the context of the emergency that the country is facing due to El Niño phenomenon, on October 6, 2015 the Ministry of Mining and Energy enacted the Decree in Force of Law N°1,979 of 2015, which authorizes Emgesa to start generating energy from October 7, 2015. On October 11, 2015 the first sincronization of Unit 1 to the system of national transmission of Colombia was performed. The main developments of the project carried out in 2015, were the following: > In June 2015, the filling of the dam started. > In July 2015, the minimum operational level was reached (lifting 675 m.s.n.m). > In August 2015, the first turn and velocity tests of Unit 1 were perfomed. > In September 2015, the first turn of Unit 2 was carried out. > In October 2015, the velocity tests of Unit 2 were Salaco Proyect With the commissioning of the SCADA system in the three preformed. power plants on November 13, 2015, the total investments > In October 2015, the synchronization tests of both planned for the Salaco project were completed. Previously units were caried out. the following commissioning dates for the projects’ units were provided: November 6, 2013 for Unit 2 (50 MW), Later, after acknowledging the Official Statement of the January 28, 2014 for Unit 1 (50 MW) and March 28, 2014 Constitutional Court, published on December 15, 2015, for Unit 5 (50 MW) of the Darío Valencia Samper power in which it declares the Decree N°1979 unconstitutional, plant, and June 25, 2014 for Unit 2 of the Salto II power Emgesa decided to suspend the energy generation of El plant (35 MW). On December 13, 2014 for Unit 1 of Quimbo from December 16, 2015, and requested to the Laguneta (18 MW) and December 22, 2014 for Unit 3 of Administrative Court of Huila to temporarily suspend the Limonar (18 MW). preventive measure. On January 8, 2016 the Third Criminal Court of Neiva judged the protection interposed by the The approved investment reached US$43.7 million Ministery of Mining and Energy and the National Authority contingencies included, the executed investment was of Aquaculture, and ordered to restart provisionally and US$40.6 million out of the total men/ hours dedicated to immediately the generation of El Quimbo. Since January the project were 835 thousand under the highest security 10, 2016, Emgesa restarted the energy generation of El standards and protection of the environment. Quimbo. Description of Electricity Business by Country 223 Land Reserved for Future Projects In Colombia there isn’t currently any reserved land for future projects. Electricity Distribution in Colombia Enersis participates in the energy distribution through its subsidiary Codensa, in which it has, directly and indirectly, a 48.4% shareholding (economic participation). In Colombia, there are 31 other distributors involved in the electrical system, amongst which are: EEPP Medellín, Empresa Distribuidora del Pacifico and Electrificadora del Caribe. Codensa Codensa distributes and sells electricity in Bogotá and 103 municipalities in the departments of Cundinamarca, Boyacá and Tolima, in a 14,456 Km2 area. Since 2001, Codensa focuses primarily on providing services to regulated customers, although it also serves some industrial and commercial customers and public lighting in municipalities. It delivered electricity service to 2,865,135 customers, 3.3% more than the previous year. Of the total, 88.8% are residential customers, 9.5% are commercial, 1.6% industrial and 0.2% other customers. Energy sales reached 15,048 GWh, including tolls and tranfers to other operators of the network, representing a 2.2 % increase over 2014. They were distributed as follows: 31.0% to the residential sector, 15.2% to the commercial sector, 6.7% to the industrial sector and 47.1% to others. Regarding the energy losses rate, in 2015 this indicator recorded an increase from 7.19% to 7.26%. This index was impacted by macroeconomic and market variables that negatively affects the behavior of energy losses. Energy losses control management has focused on the incorporation of new technologies and techniques to identify losses, as well as to strengthen the relationship client /company based on technical knowledge and transparency of our actions. 224 2015 Annual Report Enersis Activities and Distribution Projects Smart metering Smart City Bogota The project seeks to implement the intelligent measuring The Company hopes to create a Smart City (intelligent system to Codensa’s customers, through a technology city) inside Bogota, enabling the city to be positioned at infrastructure to contribute to the development of the forefront of these types of initiatives and to implement Colombia. technologies in the following aspects: The implementation of the system was defined in two > Intelligent measuring stages, the first is planned for 2016 and the second will > Sustainable mobility carry out massive deployments in the following years. > ICT plataforms for energy management systems > Smart info for consumption awareness The start up of the first stage is forecasted for 2016, where > Multi-measurement the planning, installation, operation and evaluation of the > Telecomand and network automatization intelligent measuring system to 26,000 customers (1% > Intelligent buildings and zero environmental impact of the market) will be proposed, being the strategy for > Intelligent lightning introducing the benefits and features of the system to the regulator, to the Company and the customers. Thus, the intention is to support sustainable development in the city, increase the citizens’ quality of life, and achieve greater efficiency of the available resources and facilite active participation of citizens. Description of Electricity Business by Country 225 226 2015 Annual Report Enersis MEMORIA ANUAL ENERSIS 2013162EdelnorTransmissionDistributionGenerationEnergy Sales:7,624 GWhClientsEnergy Losses:1.3 millionEdelnor8.3%LimaTrujilloChiclayoCuzcoArequipaTypeHydroelectricInstalled Capacity69 MWCentral MoyopampaHydroelectric84 MWCentral CallahuancaHydroelectric268 MWCentral HuincoHydroelectric137 MWCentral MatucanaThermoelectric298 MWCentral EepsaHydroelectric30 MWCentral HuampaniThermoelectric419 MWCentral Santa RosaThermoelectric484 MWCentral VentanillaHydroelectric43 MWCentral YanangoHydroelectric152 MWCentral ChimayDESCRIPCIÓN DEL NEGOCIO ELÉCTRICO POR PAÍSTypeInstalled CapacityTypeInstalled CapacityTypeInstalled CapacityTypeInstalled CapacityTypeInstalled CapacityTypeInstalled CapacityTypeInstalled CapacityTypeInstalled CapacityTypeInstalled Capacity Peru Electricity Generation Enersis participates in electricity generation through Endesa Chile and its subsidiary Edegel, which controls, directly and indirectly, a 58.6% stake. Additionally, Enersis directly controls 96.5% of Empresa Eléctrica de Piura (EEPSA). Through its two subsidiaries, Enersis has 1,983 MW installed capacity in Peru, which accounted for 21% of Peru’s installed capacity, 9,570 MW. In terms of power generation, Enersis Group reached 20.1% of the total generated in that country. In Peru, other generators connected to the electrical system are: Electroperú, Enersur and Kallpa Generación. Edegel Edegel is located in the surroundings of Lima. The effective Investments capacity of Edegel, including its subsidiary Chinango, reaches 1,686 MW, 46.5% of which is hydraulic generation Edegel’s investments, as the leader in the energy generation and 53.5% is thermal generation. Edegel is comprised by sub sector, are oriented to keep the reliability of the supply. seven hydroelectric power plants, five in Lima and two in Junín. Likewise, Edegel owns two thermal power plants, The investments detailed below are in line with this Santa Rosa and Ventanilla, with capacities of 419 MW and premise and show the commitment with the sustainable 484 MW, respectively. development of Peru. Edegel’s net generation reached 8,218 GWh and physical sales amounted to 8,633 GWh at the end of 2015. Description of Electricity Business by Country 227 Hydroelectric Power Plants Repairs of Hydraulic Civil Infrastructure Rehabilitation of the Yanango Turbine Works related to the repair of the channels to seal several Yanango power plant has a Francis vertical axis turbine of old cracks and fissures with water losses of the Antashupa, 42.6 MW from year 2000 with 53,713 hours of operation, Marcapomacocha and Huampaní channels. which has suffered the deteriorization of its elements High technology materials were used for the repairs; such sediments from Tarma River, therefore heavy maintenance due to the erosive action of water that contains river as hydraulic cement compound especially designed for was scheduled at workshops. fast forging, which doesn’t shrink, is highly resistant for patching and repairing concrete. Thus, its possible to stop Works consisted on the impeller rehabilitation, blades, the water flow in seconds and to seal cracks, drillings and turbine caps and impeller mazes and caps at workshops, a other defects in the cristal based concrete. coating of tungsten carbide was applied to the parts of the A total investment of US$1.4 million has been allocated increase its resistance to wasting. Investment amounted turbine that were more exposed to deterioration in order to and the benefits have been to improve the security of the to US$0.4 million. facilities and to suppress water losses, which translate into electric energy not generated. Pre assembly (Lights control) Building walls and roofings in the Huampaní Channel In May 2015, conditioning works were carried out in the Huampaní Channel for the construction of retaining walls, sills and roofings of the channel. The purpose of the works was to provide stability to the slopes, considering that roof the channel that represents a risk for the population or for the same operation and to ensure the water piping capacity of the channel. The activities performed consisted on the construction of walls 250 meters, roofs of 417 meters, sills of 90 meters and plaster of 600 m2. The investment was US$ 0.7 million. Heavy Maintenance in Francis turbines Pre assembly (Arrangements for turn test) The performance of heavy maintenance consisted on the changes of turbine for more efficient ones and the rehabilitations of our Francis turbines, which showed great deterioration caused by water that contains river sediments. Investment amounted to US$1.9 million, which will enable to recover efficiency, improve load factor and reduce maintenance interventions while increasing economic benefits. 228 2015 Annual Report Enersis Change of Turbine of Group 1 of Chimay Preventive Actions of El Niño Phenomenon During November, after 350 continued hours of operation, Facing the El Niño phenomenon alert present in our country, the following works were carried out: there were a series of preventive actions to decrease > Dimensional controls and non-destructive essays on and control the risks of our facilities and neighbors. The impellers and mazes manufactured by ALSTOM, investment amounted to US$ 840,000 > Planification of the security of the Group 1 of Chimay > Change of turbine. Main actions performed: Investment amounted to US$1.4 million. > Repair of Taza Moyopampa highway. > Protection of the left side of CCHH Moyopampa. > Protection of Huinco Callahuanca Channel. > Maintenance of the discharge of CCHH Moyopampa, Huampaní. > Reinforcment of walls and roofings of Huampaní Channel. > Maintenance of the Vase of intake Huampaní > Protection of sills of intake Huampaní. > Protection of intake Huampaní (over the elevation of walls). Thermal Power Plants Heavy Maintenance and LTE TG-3 C.T. Ventanilla T. Ventanilla The change of the control system of unit TG3 is the last After 100,000 hours of operation, on April 7 to June 1 the stage of the DCS project for Ventanilla combined cycle, first heavy maintenance of the Siemens TG3 turbine, of which included the change of hardware S7 and software 155 MW, which included the activities of LTE (Life Time T3000, with the achievement that every generation unit Extensión). This maintenance meant the total desmantling of the Ventanilla combined cycle would operate with a of the turbine and the compressor, changing parts and non standardized control system and with open architecture. regular elements to other interventions, with the objective With this update, better reliability of the control system of expanding the useful life of the turbine and to be albe and improved availability of parts to deal with failures and to work another one hundred thousand hours in the same emergency situations are obtained. conditions of availability, capacity and efficiency. Also important maintenance activities were included in the heater HRS11, chimney, expansion joint, main transformer Inspection of free turbines TG-6 A and B UTI of the C.T. Santa Rosa and other electric equipments such as the inspection of the In March the preventive inspection of the free turbines with electric generator with removed rotor. a specialist manufacturer was performed, which enabled to know the internal situation and assess the extension of the In total, it counted with the participation of 100 local and 60 next scheduled inspections, representing an increase of foreign technitians-specialists. reliability to operate in longer periods and a reduction of Update of the control system of TG-3 C. maintenance expenses. Description of Electricity Business by Country 229 Repair of the TG-8 Thermal Power Plant Santa Rosa chimney The maintenance in the TG-8 chimney was carried out form May 27 to June 7 due to the deterioration of the silencers that caused a non-scheduled outing. Specific damages were repaired and also preventive repairs of critic zones were performed, enabling the fast return to the reliable service required in a continuous operation. Empresa Eléctrica de Piura Eepsa own two generation power plants, located in the province of Talara, departament of Piura, in the north of Peru, which are the following: > Malacas 2 power plant comprises an ABB open cycle > Malacas 3 power plant, comprises a SIEMENS open unit, which may operate with or without water injection, cycle unit in condition of Cold Reserve (Reserva Fría), with natural gas. uses Diesel B5 fuel. Central Malacas 2 Malacas 3 Total Unidad TGN4 TG-5 RF * Vigente a partir de 01 de julio de 2015, ** Vigente a partir del 14 de Mayo del 2014, Centros de Producción Fabricante ABB SIEMENS Combustible declarado Gas natural Diesel B5 Potencia efectiva (MW) 104.37 * 193.42 ** 297.79 During 2015, the production of Eepsa was 583.2 GWh, 29% HEO), and also in the TG-5 RF unit (inspection lower than higher than the previous year, mainly due to: 2,000 HEO). > Higher requirement of operation using natural gas due to the declaration of lower price of natural gas of unit TGN-4 The generation unit TGN4 recorded a load factor of 51.03% to COES. and its net average efficiency was 30.58% in the period. > Operation of TG-5 RF unit with diesel due to failures of the Likewise, the average capacity of Malacas thermal power Camisea natural gas transportation system. plant was 71.13 MW and accounted an annual peak demand The operations of the Malacas thermal power plants units, peak production has been 6,056 MWh, on September 11, had three periods of generation distinguished by hydrologic 2015, and represents a new historic record in terms of daily seasons: generation, replacing the one registered on January 21, 2014, of 273.1 MW (at 00:30 hours of June 6, 2015). The daily > In the first period, between January and May, units mainly that reached 3,634 MWh. operated to relieve the hydric production deficits while solid materials were detected in the basins waters. On April 19, adaptation works in the new system of gas filter > In the second period, between June and August, in the battery of Malacas. generation increased due to a lower hydrology in the hydroelectric power planta of the SEIN. On May 18, 2015, tests for the effective capacity and > In the third period, between September and December, performance (PR-17) of the TGN4 unit of the Malacas thermal due to failures in the gas pipeline of Camisea, export of power plant with the attendance of COES as observer energy to Ecuador, among other factors. were carried out. On June 30, 2015, the COES approved On the other hand, the Malacas thermal power plant had a the TGN4 unit with a final value of 104,369 MW with water total availability of 96.53%. Minor maintenances were carried injection, higher than the value obtained in the previous test, out in the TGN-4 unit (inspections of 12,000 and 16,000 which reached 103,392 MW. the effective capacity test report and the performance of 230 2015 Annual Report Enersis Maintenance of the Units The maintenance of the units has been performed > Unit TG-5 RF: In February, 2015 works for improving the complying with the accumulation of Operation Equivalent fuel system linked too the start up with natural gas until Hours (HEO) and within the scheduled times. Among the a charge of 30 MW were performed, with the purpose activities developed in 2015, we highlight the following: of minimizing the negative effects of NOx emissions that the start up of the diesel B-5 unit produces. From > Unit TGN4: From February 25 to March 1st, 2015, the July 6 to 10, 2015, corrective maintenance activities inspection of 12,000 HEO, and from July 13 to 18, in this unit were carried out: repair of oil leaks in the 2015 the inspection of 16,000 HEO were performed. thrust bearing, water leaks in the injection bomb seal, On January 9, 2015, the unit was disconnected revision of the alarm of the temperature signal of the unexpectedly with the action of the Protection 13 generator bearing, among others. On August 25, 2015, speed, with the failure of the speed sensors 2 and the unit was disconnected unexpectedly when reaching 3. On October 13, 2015, the unit was disconnected 100 MW, with the acting of the Protection 59 of over- unexpectedly after the false action of the protection voltage of the generator phase, in two occasions. From system for high pulsations in the low frequency side, September 22 to 25, 2015, a scheduled maintenance of when going out of service of the electric feed of the the turbine was performed, as part of the maintenance control room. plan of the auxiliary equipments and the power transformer. Description of Electricity Business by Country 231 Projects under Study Curibamba Hydroelectric Power Plant This plant will be located above the water intake of Chimay the Energy Supply of New Power Plants process of Hydroelectric Plant, Junin department, and will use the Proinversion, arriving to the final stages in the Civil Works flow of Rivers Comas and Uchubamba. and Furnishing processes of the power plant. The bidding was postponed in July until further notice. In parallel, the The project includes the construction of a 192 MW run- Company received the time extension, for two additional of-the-river plant, with 86 m3/s design flow, a production years, of the Environmental Impact Study for the power of 1,013 GWh/year, and a transmission line to Pachachaca plant and the works required to secure the permits for he Substation, 135 km long in 22 0kV simple triad; this solution connection of the power plant to the Yanango substation is in review and evaluation as the Binding Transmission through the Pre-Operativity approval. Plan 2015 - 2024 has been approved, that would enable an interconnection at New Yanango substation, 40km from With regards to the permits, the power plant has the Curibamba plant. Generation Final Concession, the Environmental Impact Study for generation and transmission, as well as the During 2015, the bidding processes continued for the approved Certificates of the Absence of Archeological major contracts related to Civil Works, Equipment and Remains (CIRA) of generation and transmission. Transmission Line and Electric Interconnection to the system with the purpose of presenting the project to 232 2015 Annual Report Enersis Land Reserved for Future Projects As of December 2015, Edegel has one immovable property (land) of approximately 10 Ha, to be used in a thermal project in the furture. This property is localted in the Ica region, south of Lima. Electricity Distribution in Peru Enersis participates in electricity distribution through its subsidiary Edelnor, which controls, directly and indirectly, a 75.54% stake (economic participation). In Peru, other distributors involved in the electrical system are: Luz del Sur, Electro Sur, Electrocentro, ENOSA, Hidrandina and ENSA. Edelnor The concession area granted to Edelnor covers a total of 1,517 km2, which mostly are located to the north of Lima and Callao. Edelnor is the electric utility concessionaire for the north of Metropolitan Lima and Callao Constitutional Province, as well as Huaura, Huaral, Barranca and Oyón provinces. Edelnor is the sole distribution company in 52 districts and shares five additional districts with the southern distributor. In the metropolitan area, Edelnor’s concession consists mainly of Lima’s industrial area of Lima and some highly populated districts of the city. Edelnor delivered electricity service to 1,336,610 customers, an increase of 3.3% over 2014, and benefits more than half of the inhabitants of Lima. Out of these, 94.7% are residential customers, 3.2% are commercial customers, 0.1% are industrial customers and 2,0% are other customers. Energy physical sales amounted to 7,624 GWh, an increase of 3.9% over 2014. The energy losses indicator was 3.8% in 2015. Description of Electricity Business by Country 233 Activities and Projects in Distribution Electrification in human settlements One of our main important objectives is to improve the quality of life of the most needed families in our concession area. In the massive electrification program, works in 181 human settlements and human allotments have been carried out, with a total of 20,805 lots of land electrified, mainly in the districts of San Antonio, Carabayllo, San Juan de Lurigancho and Ancón. Telecontrol Project of the MT Network The Company performed the telecontrol implementation of the first Medium Tension networks, which have the latest technology in monitoring systems, and will enable the restoration of service in a fastest way when facing possible failures in our electricity networks. The project considers a supervisor modern system in real time of the condition of networks, failure indicators to locate damages and electric network reforms that enable the reconfiguration or to carry out load transportation as needed. Low Tension Regulators to improve product quality In order to offer a better product quality to our customers, and additionally to comply with the limits required for the outstanding legal devices in quality requirements, a pilot project was developed that consists on the installation of tension regulators along the Low Tension networks in defined locations with the purpose of improving tension profiles. In the pilot, excellent results were obtained, so in 2016 amore of them will be installed. 234 2015 Annual Report Enersis Other Businesses Servicios Informáticos e Inmobiliarios Limitada In the information and information technologies services In the field of the systems that support the cross-sectional areas, telecommunications and control systems, SIEI carries areas of the business, the Archibus project has applied, out computing projects according to each business needs. for the implementation of an application, in the cloud, In the infrastructure and networks area, in 2015 there of properties, in addition to support mobile assets control oriented to improve the management and maintenance were great progresses related to the convergence and within the group at regional level. transformation of plataforms, prioritizing four fundamentals axes that includes the main systems: EORDER, unique With regards to distributed services, the preparation for system for field work management;; STM, telecontrol of the deployment of the new office automation plataform high tension networks; GDS, new distribution system for and suite of collaborative work, which provides continuity electric networks management, and the SCADA system to the evolution towards the optimization of operations for the management and telecontrol of High Tension and increase of productivity with the use of the best and networks, projects that have reached important progresses most modern tools. in the region during 2015. In the telecommunications field for the distribution In the Market area, the customer has been placed in the business, the Telecommunications Director Plan was center of the strategy, planning the implementation while formalized, whose objective was to define the investment using the latest technology tools to improve its experience plan of the Company for a five-year term, to count with when facing distribution companies. An important case a multi-service network for the support of telecontrol is the start up of the project for the new CRM plataform, activities, technical and administrative management of the whose main objectives are the improvement of the electric energy distribution centers. perception and experience of the final customer and also to follow their 360º vision; in addition to boost the With the purpose of promote the use among users, the digitalization of the assistance channels. Related to the Company has worked in the improvement of current latter, a new NEOL web plataform was implemented, applications, likewise, there has been improvements in the which enables a better interaction and the generation of a existing systems that enables the decrease of unavailability significative presence of distribution companies in digital periods at the infrastructure and the software base levels, media. Innovation also looks for new ways of contacting and finally the development of a Global Systems plan has customers, with the incorporation of social networks started, whose purpose is to focus technology efforts through the integration with transactional systems and towards the imlementation and use of unified tools. twitter (#pagotuit). With regards to the generation business, the Company have initiated the migration of the systems platforms to has worked in a rationalization and optimization vision of strongly boost hybrid infrastructure, in the cloud as well as applications for global solutions. As such, in 2015 the first in the new data processing centers. From the infrastructure transformation point of view, we stage of the Web Generation Portal was implemented with information online of relevant variables of every generation company in LATAM. Additionally, the development and implementation started, with a display that extends until 2016, the PWAY System for management of measures taken during surveilliance rounds in plants, being an application completely integrated with the rest of the systems of the maintenance chain. Description of Electricity Business by Country 235 Participation in Subsidiaries & Associates and Schematic Table Participation in Subsidiaries & Associates and Schematic Table 237 238 2015 Annual Report Enersis  Direct and Indirect Economic Participations Argentina Costanera El Chocón Dock Sud Edesur CTM TESA CEMSA Gasoducto Atacama Argentina Yacylec Termoeléctrica José de San Martin Termoeléctrica Manuel Belgrano Central de Vuelta Obligado S,A, Chile Endesa Chile Celta Pehuenche Eólica Canela HidroAysén Aysén Energía Aysen Transmisión Gas Atacama Chilectra Transquillota Gas Atacama Chile Gasoducto Tal Tal Electrogas GNL Chile GNL Quintero Brasil Enel Brasil Fortaleza Cachoeira Dourada Ampla Coelce CIEN Enel Green Power Modelo 1 Eólica S,A, Enel Green Power Modelo 2 Eólica S,A, Colombia Emgesa Codensa Empresa Eléctrica de Cundinamarca Perú Edegel Edelnor EEPSA Chinango S,A,C Gx: Generation Dx: Distribution Tx: Transmission / Comercialization Ox: Gas Pipelines, others (*) Are considered operational companies of the Enersis Group. Business Gx Gx Gx Dx Tx Tx Tx Ox Tx Gx Gx Gx Business Gx Gx Gx Gx Gx Gx Tx Gx Dx Tx Ox Ox Ox Ox Ox Negocio Gx. Dx. Tx Gx Gx Dx Dx Tx Gx Gx Business Gx Dx Dx Business Gx Dx Gx Gx Property 45.39% 39.21% 40.25% 71.62% 84.38% 84.38% 81.99% 60.74% 22.22% 10.38% 10.38% 16.18% Property 59.98% 61.49% 55.57% 61.49% 30.59% 30.59% 30.59% 60.74% 99.09% 30.75% 60.74% 60.74% 25.49% 19.99% 12.00% Propiedad 84.38% 84.38% 84.17% 92.03% 64.86% 84.38% 0.82% 0.82% Property 37.72% 48.39% 19.52% Property 58.60% 75.54% 96.50% 46.88% Participation in Subsidiaries & Associates and Schematic Table 239  Perimeter of Enersis’ Corporate Perímetro de participaciones societarias de Enersis Shareholdings 99,99997% 99,8967% 99% Inmobiliaria Manso de Velasco Ltda. Servicios Informáticos e Inmobiliarios Ltda. ICT Servicios Informaticos Ltda. 0,1033% 1% 0,00003% 57,50% 57,50% Soc. Agrícola de Cameros Ltda. Soc. Agrícola de Cameros Ltda. Deca S.A. Deca S.A. 82,34% 82,34% EEC S.A. EEC S.A. 55 % 55 % Endesa Cemsa S.A. Endesa Cemsa S.A. 45% 45% EASA EASA 100% 100% 25,82% Aguas Santiago Poniente S.A. 53,06% 99,998243% 99,998243% 55,00% Const. y Proyectos Los Maitenes S.A. Chilectra Chilectra Inversud S.A. Inversud S.A. 0,001757% 0,001757% (*) 94,95 % Emgesa (*) 94,95 % Emgesa 48,997% 48,997% Sociedad Portuaria Sociedad Portuaria Central Cartagena S.A. Central Cartagena S.A. 4,90% 4,90% Inversora Inversora Codensa S.A.S. Codensa S.A.S. 100% 100% 99,90% 99,90% Luz Andes Ltda. Luz Andes S.A. 0,10% 0,10% 0,0002% 0,0002% 99,9998% 99,9998% Empresa Eléctrica Empresa Eléctrica de Colina Ltda. de Colina S.A. 69,992 % 69,992 % Central Central Dock Sud S.A. Dock Sud S.A. 0,2509 % Termoeléctrica Manuel Termoeléctrica Manuel Belgrano S.A. Belgrano S.A. 1,42% 1,42% Termoeléctrica José Termoeléctrica José de San Martín S.A. de San Martín S.A. 1,42% 1,42% Central Vuelta Central Vuelta de Obligado S.A. de Obligado S.A. 6,40% 6,40% Generalima S.A. Generalima S.A. 100 % 100 % 20 % 20 % Empresa Electrica Empresa Electrica Caboblanco S.A. Caboblanco S.A. 80 % 80 % 60% 60% 36,50 % 36,50 % Empresa Electrica Empresa Electrica De Piura S.A. De Piura S.A. 100 % Compañía Energética Veracruz S.A.C 3,781705% 3,781705% Compañía Eléctrica Compañía Eléctrica Tarapaca S.A. Tarapaca S.A. 96,214172% 96,214172% 21,60% 21,607631% Emgesa S.A. Emgesa S.A. 26,873987 % 26,873987 % (*) 94,95 % sobre Sociedad (*) 94,95 % sobre Sociedad Portuaria Central Cartagena S.A. Portuaria Central Cartagena S.A. 0,0127644% 99,0778566% 99,09062105% 59,98% 59,98% Codensa S.A. Codensa S.A. Yacilec S.A. Yacilec S.A. 9,35% 9,35% 39,13% 39,13% 22,22% 22,22% Inversora Inversora Dock Sud S.A. Dock Sud S.A. 57,1417 % 57,1417 % 27,1941% 27,1941% 23,4184% 23,4184% 22,2548 % 22,2494 % 20,8477% 20,8477% Distrilec Distrilec Inversora S.A. Inversora S.A. 0,8875 % 0,8875 % 56,3577% 56,3577% 39,00155% Edesur S.A. Edesur S.A. Generandes Generandes Perú S.A. Perú S.A. 60,99845% 60,99845% 50,00% 50,00% 54,19961% 54,19961% Sacme S.A. Sacme S.A. Edegel S.A. Edegel S.A. 29,3974% 29,3974% Edelnor S.A. Edelnor S.A. 24,00% 24,00% 51,684% 51,684% Inversiones Inversiones Distrilima S.A. Distrilima S.A. 69,846% 69,846% 30,154% 30,154% 5,328342 % 50,093666 % 50,093666 % 5,328342 % Endesa Brasil S.A. Enel (Holdco) Brasil S.A. 3,996592% 3,996592% 34,640090% 34,640090% 5,941306% 5,941306% 0,0001% 0,0001% Endesa Brasil En -Brasil Comercio e Serviços S.A. Comercio e Serviços S.A. 99.9999% 99.9999% 99,95% 99,95% Eólica Fazenda Nova Eólica Fazenda Nova Geraçao e Comercializaçao Geraçao e Comercializaçao de Energia S.A. de Energia S.A. 10,344606% 21,383694% 21,383694% 10,344606% 21,022414% 21,022414% 46,886283% 46,886283% Ampla Ampla Energia S.A. Energia S.A. 0,975 % 0,975 % 0,975 % 0,975 % EGP EGP Modelo I Eólica Modelo I Eólica EGP EGP Modelo II Eólica Modelo II Eólica 58,867455 % 15,1836062 % 58,867455 % 100% 100% 100% 100% 99,754055 % 99,754055 % Coelce S.A. Coelce S.A. CIEN S.A. CIEN S.A. C.G.T C.G.T Fortaleza S.A. Fortaleza S.A. Cachoeira Cachoeira Dourada S.A. Dourada S.A. Argentina Argentina Brazil Brasil Chile Chile Colombia Colombia Peru Perú 2015 Annual Report Enersis MEMORIA ANUAL ENERSIS 2013 CUADRO ESQUEMATICO DE PARTICIPACIONES 171 240 170 Perímetro de participaciones societarias de Enersis 99,99997% 99,8967% 99% Inmobiliaria Servicios Informáticos ICT Servicios 0,1033% 1% Manso de Velasco Ltda. e Inmobiliarios Ltda. Informaticos Ltda. 0,00003% 57,50% 57,50% Soc. Agrícola Soc. Agrícola de Cameros Ltda. de Cameros Ltda. 25,82% Aguas Santiago Poniente S.A. 55,00% Const. y Proyectos Los Maitenes S.A. 53,06% 99,998243% 99,998243% 3,781705% 3,781705% Compañía Eléctrica Compañía Eléctrica Tarapaca S.A. Tarapaca S.A. 96,214172% 96,214172% 21,60% 21,607631% Emgesa S.A. Emgesa S.A. 26,873987 % 26,873987 % (*) 94,95 % sobre Sociedad (*) 94,95 % sobre Sociedad Portuaria Central Cartagena S.A. Portuaria Central Cartagena S.A. 0,0127644% 99,0778566% 99,09062105% 59,98% 59,98% Deca S.A. Deca S.A. 82,34% 82,34% EEC S.A. EEC S.A. 55 % 55 % Endesa Cemsa S.A. Endesa Cemsa S.A. 45% 45% EASA EASA 100% 100% (*) 94,95 % Emgesa (*) 94,95 % Emgesa 48,997% 48,997% Sociedad Portuaria Sociedad Portuaria Central Cartagena S.A. Central Cartagena S.A. 4,90% 4,90% Inversora Inversora Codensa S.A.S. Codensa S.A.S. 100% 100% 69,992 % 69,992 % Central Central Dock Sud S.A. Dock Sud S.A. 0,2509 % Chilectra Chilectra Inversud S.A. Inversud S.A. 0,001757% 0,001757% 99,90% 99,90% Luz Andes Ltda. Luz Andes S.A. 0,10% 0,10% 0,0002% 0,0002% 99,9998% 99,9998% Empresa Eléctrica Empresa Eléctrica de Colina Ltda. de Colina S.A. Termoeléctrica Manuel Termoeléctrica Manuel 1,42% 1,42% Belgrano S.A. Belgrano S.A. Termoeléctrica José Termoeléctrica José de San Martín S.A. de San Martín S.A. 1,42% 1,42% Central Vuelta Central Vuelta de Obligado S.A. de Obligado S.A. 6,40% 6,40% Generalima S.A. Generalima S.A. 100 % 100 % 20 % 20 % Empresa Electrica Empresa Electrica Caboblanco S.A. Caboblanco S.A. 80 % 80 % 60% 60% 36,50 % 36,50 % Empresa Electrica Empresa Electrica De Piura S.A. De Piura S.A. 100 % Compañía Energética Veracruz S.A.C Codensa S.A. Codensa S.A. Yacilec S.A. Yacilec S.A. 9,35% 9,35% 39,13% 39,13% 22,22% 22,22% Inversora Inversora Dock Sud S.A. Dock Sud S.A. 57,1417 % 57,1417 % 27,1941% 27,1941% 23,4184% 23,4184% 22,2548 % 22,2494 % 20,8477% 20,8477% Distrilec Distrilec Inversora S.A. Inversora S.A. 0,8875 % 0,8875 % 56,3577% 56,3577% 39,00155% Edesur S.A. Edesur S.A. Generandes Generandes Perú S.A. Perú S.A. 60,99845% 60,99845% 50,00% 50,00% 54,19961% 54,19961% Sacme S.A. Sacme S.A. Edegel S.A. Edegel S.A. 29,3974% 29,3974% Edelnor S.A. Edelnor S.A. 24,00% 24,00% 51,684% 51,684% Inversiones Inversiones Distrilima S.A. Distrilima S.A. 69,846% 69,846% 30,154% 30,154% 5,328342 % 50,093666 % 50,093666 % 5,328342 % Endesa Brasil S.A. Enel (Holdco) Brasil S.A. 3,996592% 3,996592% 34,640090% 34,640090% 5,941306% 5,941306% 0,0001% 0,0001% Endesa Brasil En -Brasil Comercio e Serviços S.A. Comercio e Serviços S.A. 99.9999% 99.9999% 99,95% 99,95% Eólica Fazenda Nova Eólica Fazenda Nova Geraçao e Comercializaçao Geraçao e Comercializaçao de Energia S.A. de Energia S.A. 10,344606% 21,383694% 10,344606% 21,383694% 21,022414% 21,022414% Ampla Ampla Energia S.A. Energia S.A. 46,886283% 46,886283% 0,975 % 0,975 % 0,975 % 0,975 % EGP EGP Modelo I Eólica Modelo I Eólica EGP EGP Modelo II Eólica Modelo II Eólica 58,867455 % 15,1836062 % 58,867455 % 100% 100% 100% 100% 99,754055 % 99,754055 % Coelce S.A. Coelce S.A. CIEN S.A. CIEN S.A. C.G.T C.G.T Fortaleza S.A. Fortaleza S.A. Cachoeira Cachoeira Dourada S.A. Dourada S.A. Argentina Argentina Brazil Brasil Chile Chile Colombia Colombia Peru Perú 170 MEMORIA ANUAL ENERSIS 2013 CUADRO ESQUEMATICO DE PARTICIPACIONES Participation in Subsidiaries & Associates and Schematic Table 241 171  Perimeter of Endesa Chile’s Corporate Shareholdings 41,9411% 41,9411% Hidroinvest S.A. Hidroinvest S.A. 54,1535% 54,1535% 59,00% 59,00% Hidroeléctrica Hidroeléctrica El Chocón S.A. El Chocón S.A. 6,1938% 6,1938% 99,657366% 99,657366% 0,342634% 0,342634% 98% 98% 2,0% 2,0% Endesa Endesa Argentina S.A. Argentina S.A. Southern Cone Power Southern Cone Power Argentina S.A. Argentina S.A. 1,1512% Termoeléctrica Termoeléctrica Manuel Belgrano S.A. Manuel Belgrano S.A. 5,326% 5,326% 49,6843% 49,6843% Endesa Endesa Costanera S.A. Costanera S.A. 24,8458% 24,8458% Termoeléctrica Termoeléctrica José de San Martín S.A. José de San Martín S.A. 5,326% 5,326% Distrilec S.A. Distrilec S.A. 0,887466% 0,887466% Central Vuelta de Central Vuelta de Obligado S.A. Obligado S.A. 1,3% 1,3% 1,00% 1,00% Ingendesa do Ingendesa do Brasil Ltda. Brasil Ltda. 99,00% 99,00% 2,4803% 2,4803% 18,85% 18,85% 1,42% 1,42% 18,85% 18,85% 1,42% 1,42% 33,2% 33,2% 6,40% 6,40% Central Dock Sud S.A. Chinango S.A.C. Chinango S.A.C. 45% Endesa Cemsa S.A. Endesa Cemsa S.A. 55,00% 55,00% 60,99845% 39,00155% 80,00% 80,00% 34,640090% 34,640090% 26,873987% 26,873987% Generandes Generandes Perú S.A. Perú S.A. 29,3974% 29,3974% 54,19961% 54,19961% Edegel S.A. Edegel S.A. 3,996592% 3,996592% Enel Brasil S.A. Enel Brasil S.A. Emgesa S.A. Emgesa S.A. 26,873987% 26,873987% 21,60% 21,60% 100% 100% Emgesa Panamá S.A. Emgesa Panamá S.A. 58,867455% Coelce S.A. Coelce S.A. 15,1836062% Ampla S.A. Ampla S.A. 46,886283% 46,886283% CIEN S.A. CIEN S.A. 100% 100% 99,95% 99,95% Eólica Fazenda Nova Eólica Fazenda Nova Geraçao e Comercializaçao Geraçao e Comercializaçao de Energia S.A. de Energia S.A. 94,95% 94,95% Sociedad Portuaria Sociedad Portuaria Central Cartagena S.A. Central Cartagena S.A. 4,90% 4,90% Inversora Inversora Codensa S.A.S. Codensa S.A.S. Gasoducto Atacama Argentina S.A. ENERSIS, S.A. Sucursal Argentina 0,001% 0,001% 99,999% 99,999% Transportadora Transportadora de Energía de Energía del Mercosur S.A. del Mercosur S.A. (Tesa) (Tesa) 99,999993% 99,999993% Cía. de Transmisión Cía. de Transmisión del Mercosur S.A. del Mercosur S.A. (CTM) (CTM) 100% 100% C.G.T C.G.T Fortaleza S.A. Fortaleza S.A. 0,01% 0,01% 99,9999% EN - Brasil Comercio EN - Brasil Comercio e Servicios S.A. e Servicios S.A. 99,754055% 99,754055% Cachoeira Cachoeira Dourada S.A. Dourada S.A. 0,975610% 0,975610% EGP Modelo I Eólica EGP Modelo I Eólica 0,975610% 0,975610% EGP Modelo II Eólica EGP Modelo II Eólica 242 2015 Annual Report Enersis 96,214172% 96,214172% Compañía Eléctrica Compañía Eléctrica 3,781705% 3,781705% Tarapaca S.A. Tarapaca S.A. 50,00% 50,00% Inversiones Inversiones Gas Atacama Gas Atacama Holding Ltda. Holding Ltda. 50,00% 0,1% 0,1% Progas S.A. Progas S.A. 0,05% 99,90% Gas Atacama Gas Atacama Chile S.A. Chile S.A. 0,05% 42,71% 42,71% 0,1226% 0,1226% 0,03% 0,03% Gasoducto Atacama Gasoducto Atacama Argentina S.A. Argentina S.A. 57,23% 0,03% 99,9% 99,9% 99,877% 99,877% Gasoducto Gasoducto Taltal S.A. Taltal S.A. 50% Gasoducto Atacama GNL Argentina S.A. NORTE S.A Sucursal Argentina 50% 100% 100% Gasoducto Atacama Gasoducto Atacama Argentina S.A. Argentina S.A. Sucursal Argentina Sucursal Argentina Central Eólica Central Eólica Canela S.A. Canela S.A. Transquillota Ltda. Transquillota Ltda. 75% 75% 50,00% 99,997706% 99,997706% 0,002294% Gas Atacama S.A. Gas Atacama S.A. 50,99995% 50,99995% Centrales Centrales Hidroeléctricas Hidroeléctricas de Aysén S.A. de Aysén S.A. 0,00005% 0,51% 0,51% Aysén Transmisión S.A. Aysén Energia S.A. 99% 99% 92,65% 92,65% Pehuenche S.A. 33,33% 33,33% GNL Chile S.A. 20% 20% GNL Quintero S.A. 42,50% 42,50% Electrogas S.A. Argentina Argentina Brasil Brazil Chile Chile Colombia Colombia Perú Peru 41,9411% 41,9411% 54,1535% 54,1535% Hidroinvest S.A. Hidroinvest S.A. 59,00% 59,00% Hidroeléctrica Hidroeléctrica El Chocón S.A. El Chocón S.A. 6,1938% 6,1938% 99,657366% 99,657366% 0,342634% 0,342634% 98% 98% 2,0% 2,0% Endesa Endesa Argentina S.A. Argentina S.A. Southern Cone Power Southern Cone Power Argentina S.A. Argentina S.A. 1,1512% Termoeléctrica Termoeléctrica Manuel Belgrano S.A. Manuel Belgrano S.A. 5,326% 5,326% 49,6843% 49,6843% Endesa Endesa Costanera S.A. Costanera S.A. 24,8458% 24,8458% Termoeléctrica Termoeléctrica José de San Martín S.A. José de San Martín S.A. 5,326% 5,326% Distrilec S.A. Distrilec S.A. 0,887466% 0,887466% 2,4803% 2,4803% 18,85% 18,85% 1,42% 1,42% 18,85% 18,85% 1,42% 1,42% 33,2% 33,2% 6,40% 6,40% 1,00% 1,00% Ingendesa do Ingendesa do Brasil Ltda. Brasil Ltda. 99,00% 99,00% 45% 55,00% 55,00% Endesa Cemsa S.A. Endesa Cemsa S.A. Central Vuelta de Central Vuelta de Obligado S.A. Obligado S.A. 1,3% 1,3% Central Dock Sud S.A. Chinango S.A.C. Chinango S.A.C. 60,99845% 39,00155% 80,00% 80,00% 34,640090% 34,640090% 26,873987% 26,873987% 3,996592% 3,996592% Enel Brasil S.A. Enel Brasil S.A. Emgesa S.A. Emgesa S.A. 29,3974% 29,3974% 54,19961% 54,19961% Generandes Generandes Perú S.A. Perú S.A. Edegel S.A. Edegel S.A. 0,001% 0,001% 99,999% 99,999% Transportadora Transportadora de Energía de Energía del Mercosur S.A. del Mercosur S.A. (Tesa) (Tesa) 99,999993% 99,999993% Cía. de Transmisión Cía. de Transmisión del Mercosur S.A. del Mercosur S.A. (CTM) (CTM) 58,867455% Coelce S.A. Coelce S.A. 15,1836062% Ampla S.A. Ampla S.A. 46,886283% 46,886283% CIEN S.A. CIEN S.A. 100% 100% 99,95% 99,95% Eólica Fazenda Nova Eólica Fazenda Nova Geraçao e Comercializaçao Geraçao e Comercializaçao de Energia S.A. de Energia S.A. 94,95% 94,95% Sociedad Portuaria Sociedad Portuaria Central Cartagena S.A. Central Cartagena S.A. 4,90% 4,90% Inversora Inversora Codensa S.A.S. Codensa S.A.S. 100% 100% C.G.T C.G.T Fortaleza S.A. Fortaleza S.A. 0,01% 0,01% 99,9999% EN - Brasil Comercio EN - Brasil Comercio e Servicios S.A. e Servicios S.A. 99,754055% 99,754055% Cachoeira Cachoeira Dourada S.A. Dourada S.A. 0,975610% 0,975610% EGP Modelo I Eólica EGP Modelo I Eólica 0,975610% 0,975610% EGP Modelo II Eólica EGP Modelo II Eólica 26,873987% 26,873987% 21,60% 21,60% 100% 100% Emgesa Panamá S.A. Emgesa Panamá S.A. Gasoducto Atacama Argentina S.A. ENERSIS, S.A. Sucursal Argentina 96,214172% 96,214172% Compañía Eléctrica Compañía Eléctrica Tarapaca S.A. Tarapaca S.A. 3,781705% 3,781705% 50,00% 50,00% Inversiones Inversiones Gas Atacama Gas Atacama Holding Ltda. Holding Ltda. 50,00% 0,1% 0,1% Progas S.A. Progas S.A. 0,05% 99,90% Gas Atacama Gas Atacama Chile S.A. Chile S.A. 0,05% 42,71% 42,71% 0,1226% 0,1226% 0,03% 0,03% Gasoducto Atacama Gasoducto Atacama Argentina S.A. Argentina S.A. 57,23% 0,03% 99,9% 99,9% 99,877% 99,877% Gasoducto Gasoducto Taltal S.A. Taltal S.A. 50% Gasoducto Atacama GNL Argentina S.A. NORTE S.A Sucursal Argentina 50% 100% 100% Gasoducto Atacama Gasoducto Atacama Argentina S.A. Argentina S.A. Sucursal Argentina Sucursal Argentina Central Eólica Central Eólica Canela S.A. Canela S.A. Transquillota Ltda. Transquillota Ltda. 75% 75% 50,00% 99,997706% 99,997706% 0,002294% Gas Atacama S.A. Gas Atacama S.A. 50,99995% 50,99995% Centrales Hidroeléctricas de Aysén S.A. Centrales Hidroeléctricas de Aysén S.A. 0,00005% 0,51% 0,51% Aysén Transmisión S.A. Aysén Energia S.A. 99% 99% 92,65% 92,65% Pehuenche S.A. 33,33% 33,33% GNL Chile S.A. 20% 20% GNL Quintero S.A. 42,50% 42,50% Electrogas S.A. Argentina Argentina Brazil Brasil Chile Chile Colombia Colombia Peru Perú Participation in Subsidiaries & Associates and Schematic Table 243 Significant Event of the Entity Significant Event of the Entity 245 246 2015 Annual Report Enersis  2015 Significant Events In accordance with articles 9 and 10, paragraph 2, under Endesa Chile participates. As publicly knowledged, Securities Market Law N°18,045, and as established appeals have been brought before the tribunals of under General Norm No. 30 of the Superintendence, of Valdivia and Santiago. Recently, on January 28, this Superintendence, the following significants events Endesa Chile was informed that the request of are informed: water rights made by Centrales Hidroeléctircas de Aysén, fron now on “Hidroaysén” in 2008 was > On January 20, 2015, the following significant event partially denied. was informed: The subsidiary Endesa Chile has expressed On January 20, 2015, the Executive Officer, Mr. Luigi its intention to continue defending the water Ferraris, submitted his resignation to the position rights and the environmental qualification of through a letter addressed to the Chairman of the HidroAysén previously given to the project Board of Directors of the Company. The resignation through already initiated continuing legal actions was due to family reasons and was effective from or by implementing new administrative or judicial January 29, 2015. In a forthcoming meeting, the actions to this purpose. Endesa Chile maintains Board will appoint his replacement. the opinion that the hydraulic resources of the Aysén region are important for the country energy The reports mentioned were requested by the development. aforementioned corporate bodies of the Company, on the occasion of the study of a possible operation Nevertheless, in the current situation, there is between related parties, from now on, the Operation. uncertainty regarding the recoverability of the investments perfomed in Hidroaysén so far, - On January 29, 2015, the Company informed the because its depends on judicial decisions and significant event regarding the Board of Directors on definitions of the matters included in the session held on January 29, 2015, by unanimity of its energy agenda that we are not in the position to members, appointed Mr. Luca D’Agnese as Executive anticipate today, so the investment is not a part Officer replacing Mr. Luigi Ferraris, who submitted his of the immediate projects’ portfolio of Endesa. resignation to the position on January 20, as informed Accordingly, the subsidiary Endesa Chile decided in the significant event of the Company of that same to register an impairment of $ 69,066 million  date. (approximately US$ 121 million) for its participation in HydroAysén S.A., which affects the company’s - On January 29, 2015, the Company informed the 2014 net income. session held on January 29, 2015, the Board of Directors of the Company, by unanimity of its Enersis recorded a charge to net income of $ members, agreed to inform the following significant 41,426 million to Enersis (approximately US$ event: 73 million) due to Endesa Chile’s provision for impairment of its participation of HidroAysén. a.- Investment evaluation of the HidroAysén Project. In May 2014, the Minister’s Committee revoked b.- Punta Alcalde project evaluation the Environmental Qualification Resolution (RCA) The Punta Alcalde project of our subsidiary of the HidroAysén project in which our subsidiary Endesa Chile had its Environmental Qualification Significant Event of the Entity 247 Resolution (RCA) approved for the generation relation to compliance of the obligations agreed project (reaffirmed with additional requirements to by the Consortium under the Extension Project by the Supreme Court in January 2014). In order to of the Bocamina Thermal Power Plant Contract attain environmental approval for the transmission (Contrato Proyecto Ampliación Central Térmica line an Environmental Impact Assessment (EIA) Bocamina) and termination is granted from must be completed. the obligations generated under such contract. Endesa Chile’s Board of Directors’ acceptance Endesa Chile’s engineering team, with the support and approval of the Transaction depends upon of ours experts in coal technology, have studied the compliance with the conditions precedent the possibilities to adapt Punta Alcalde in order in a timely manner, including the acceptance to make it a profitable and technologically more and approval of the terms of the Transaction and sustainable. It has been decided that major all elements of their essence,  by the Boards of modifications to the already approved RCA would Directors and/or administration entities of all the be very difficult. companies that are part of the Consortium. Therefore, Endesa Chile has decided to stop the  Enersis’ financial effect for due to the recognization development of Punta Alcalde project as well as the of the Transaction is US$ 125 million of greater Punta Alcalde - Maitencillo transmission project. investments.    Endesa Chile is waiting to clarify the uncertainty about its profitability, and has recorded the value - On April 22, 2015, the following significant event was of a non-recoverable. informed: The financial and accounting effects for Enersis The Board of Directors of Enersis, in its session held are a charge to non-recoverable value of assets of on April 22, 2015, has been informed of a significant $12,582 million before taxes (approximately US$ event released today by its parent company, the 22 million) with a net effect on the net income Italian company Enel SpA, in which Enel refers to for the year 2014 in the amount of $5.509 million the convening of the Board of Directors of Enersis, (about US$ 10 million), due to the Endesa Chile’s Endesa Chile and Chilectra to begin the analysis of impairment on the Punta Alcalde project. an eventual corporate reorganization process, with the intention of separating electricity generation and c.- Transaction with SES Consortium – Tecnimont. distribution activities  in Chile from those  in other Latin American countries. Today, January 29, 2015, Endesa Chile’s Board of Directors accepted and approved the document This Board of Directors has unanimously decided called “Conditional Transaction, Termination and to attach hereto copies of the significant event, in Annulment”, from now on the Transaction, through both Italian and English, in order to make it known which Endesa Chile and the companies Ingeniería to all the Enersis’ shareholders. In addition, it has y Construcción Tecnimont Chile y Compañía been decided that once the new Board of Directors Limitada; Tecnimont SpA; Tecnimont do Brasil is appointed, the Board of Director must evaluate Construcao e Administracao de Projetos Ltda.; the possible reorganization by initiating a study Slovenske Energeticke Strojarne a.s. (hereinafter of the aforementioned proposal at the upcoming “SES”); and “Ingeniería y Construcción SES Chile Board of Directors meeting to be held on April 28, Limitada”, from now on all collectively called the 2015. Enersis will duly inform the Superintendence “Consortium” terminate the arbitration filed of Securities and Insurance, all of its shareholders by Endesa Chile before the International Court and the market in general, regarding all the decisions of Arbitration of the International Chamber of adopted regarding this matter. Commerce (CCI, Corte Internacional de Arbitraje de la Cámara de Comercio Internacional,) in - The Ordinary Shareholders’ Meeting of Enersis held 248 2015 Annual Report Enersis on April 28, 2015, has agreed to distribute a definitive 5° Finally, It’s informed that the Enersis’ Board of dividend  (partly composed of Interim Dividend No. Directors Committee has appointed Mr. Hernán 90 of Ch$  0.831148 per share)  and an additional Somerville Senn as Chairman and Mr. Domingo dividend totaling Ch$ 305,078,934,556, equivalent to Valdés Prieto as Secretary. Ch$ 6.21433 per share. - On April 28, 2015, the following significant event was Since Interim Dividend No.90 has already been paid, informed: the remaining Ch$ 264,259,128,599, or Ch$ 5,38285 per share dividend will be distributed and paid in Final The Board of Directors of Enersis unanimously decided Dividend No. 91. to begin the analysis of a corporate reorganization process, with the intention of separating electricity - On April 28, 2015, the following significant event was generation and distribution activities in Chile from informed: those outside of Chile held by Enersis and its subsidiaries, Empresa Nacional de Electricidad S.A. 1° The Ordinary Shareholders’ Meeting of Enersis (“Endesa Chile”) and Chilectra S.A. (“Chilectra”). The held on April 28, 2015, has appointed a new Board objective of this reorganization is to resolve certain of Directors for a three-year period, comprised of duplicities and redundancies that currently derive the following persons: Mr. Jorge Rosenblut Mr. Francesco Starace Mrs. Francesca Di Carlo Mr. Alberto De Paoli Mr. Hernán Somerville Senn Mrs. Carolina Schmidt Zaldívar Mr. Rafael Fernández Morandé from the complex corporate structure of the Enersis Group and to generate value for all its shareholders, retaining the benefits derived from their belonging to the Enel Group. To that effect, the Company proposes to analyze a possible corporate reorganization consisting in separating Enersis, Endesa Chile and Chilectra for segregation, maintaining the Chilean generation and distribution business activities separately on one side 2° In the Board of Directors’ Session held on April and, on the other side, the activities outside of Chile 28, 2015, Mr. Jorge Rosenblut was appointed as and, eventually, merging the resulting companies Chairman of the Board of Directors, Mr. Francesco to become the property owners of those business Starace as Vice-President and Mr. Domingo Valdés stakes outside of Chile. Prieto as Secretary of the Board of Directors. 3° Similarly, in the aforementioned Board of Directors’ contribution of additional financial resources by None of these operations would require the Session, the Board of Directors Committee shareholders. governed by the Chilean Companies Act Law N° 18,046 and the Sarbanes Oxley Act was appointed, Likewise, all shareholders would maintain in the which is formed by the Directors, Messrs. Hernán resulting companies from the abovementioned Somerville Senn, Carolina Schmidt Zaldívar and division a shareholding identical to that they held Rafael Fernández Morandé. As required by the prior to such reorganization. Resolution N° 1,956 of the Superintendence, its informed that the three aforementioned persons The newly created companies, as a result of this are independent Directors. corporate reorganization process, would also be based in Chile and their shares would be traded in 4° It’s informed that the Enersis’ Board of Directors the same markets as the companies of the Enersis has appointed Mr. Hernán Somerville Senn as Group currently trade them. the Financial Expert of the Board of Directors Committee. The Board of Directors of Enersis has instructed Significant Event of the Entity 249 the Management in order to analyze this possible Directors’ Committee corporate reorganization considering both the Hernán Somerville Senn Chairman of the Board Company’s best interest and that of all its shareholders and Financial Expert and otherstakeholders, paying special attention to the Rafael Fernández Morandé interest of minority shareholders, as well as to convey Herman Chadwick Piñera this initiative to the Boards of Directors of Endesa Chile and Chilectra. The Board of Directors expressed its appreciation to Mr. Rosenblut for his performance as Chairman Should it be approved by the Boards of Directors of of Enersis and previously in the subsidiaries Endesa Enersis, Endesa Chile and Chilectra, the corporate Chile and Chilectra. Additionally, the Board of Directors reorganization proposal would be submitted for thanked Ms. Carolina Schmidt Zaldívar for her valuable the approval at their respective Shareholders’ contributions to the Company’s Board of Directors. Meetings. The Company will duly inform the market of the described in the significant events dated April 22 and - Regarding the corporate reorganization operation progress of this initiative. April 28, 2015 and in the response to the Official Letter N° 8,438 filed on April 27, 2015, on July 20, 2015, - On June 30, 2015, the following significant event was Enersis S.A. has received from the Superintendence informed: of Securities and Insurance (SVS) an answer to the reserved inquiry submitted on May 18, 2015. Hereto I In its session held on June 30, 2015, the Company’s enclosed the text of the inquiry, which the SVS is no Board of Directors appointed Mr. Francisco de Borja longer consider as reserved, as well as of the Official Acha Besga as Chairman of the Board of Directors, Letter N°15,443 that includes the answers to our replacing Mr. Jorge Rosenblut, who submitted his inquiry. resignation effective as of the same date. Additionally, the Board of Directors acknowledged that Inquiry submitted on May 18, 2015: on June 26th, Ms. María Carolina Schmidt Zaldívar By virtue of the powers incumbent upon the submitted her resignation as Director and member of Superintendence of Securities and Insurance through the Board of Directors’ Committee. On June 30, 2015, the application of article 4 letter a) of Decree Law Enersis’ Board of Directors appointed Mr. Herman N° 3,538, enacted on 1980, and in exercise of the Chadwick Piñera as her replacement. He will assume powers bestowed under letter b) of the referred legal as an independent Director and a member of the precept, we hereby submit this reserved presentation Board of Directors’ Committee, effective from this requesting your administrative interpretation with date. respect to the inquiries stated herein. Consequently, the Company’s Board of Directors and Inquiries are related to an eventual process of the Board of Directors’ Committee are as follows: corporate reorganization that is described below in Board of Directors its essential aspects and in a briefly manner, with respect to the corporations Enersis S.A. (hereinafter Francisco de Borja Acha Besga Chaiman of the Board also “Enersis”), Empresa Nacional de Electricidad Sr. Francesco Starace Vice Chairman S.A. (hereinafter also “Endesa”), and Chilectra S.A. Alberto Di Paoli Francesca Di Carlo Hernán Somerville Senn Herman Chadwick Piñera Rafael Fernández Morandé (hereinafter also “Chilectra”). As informed to the market and to this Superintendence through, among other information, a response from Enersis on April 27, 2014 to your Official Letter N°8,438 dated April 24, 2015, the reorganization would imply 250 2015 Annual Report Enersis separating the electricity generation and distribution The new entities Endesa-2 and Chilectra-2 will be activities developed in Chile from those developed in listed in the stock markets where they currently other countries in Latin America. This reorganization are, respectively, Endesa and Chilectra, and in the seeks to maximize the potential growth of Enersis case of Endesa-2, it will also be submitted to those and its subsidiaries Endesa and Chilectra; resolve determined in Title XII of D.L 3.500 on November certain duplicities and redundancies that currently 4, 1980 derive from the complex organizational structure of the Enersis Group; and generate value for all its (b) To agree the division of Enersis, which is the shareholders. In summary, the reorganization would controller of Endesa and Chilectra, through the enable refocusing the industrial plans for Chile and for creation of a new company to these effects the rest of the countries in Latin American, in function denominated “Enersis-2”. It will be allocated to of the respective requirements of each geographic Enersis-2 the shareholdings and investments that ambit. In addition, it would increment the visibility Enersis would have, as a result of the division of of the assets; which, through the definition of new Endesa and Chilectra, in Endesa-2 and Chilectra-2, equity stories, would enable to obtain their highest which could represent more than 50% of Enersis’ value. As reported to that Superintendence and to asset, and the eventual liabilities that would be the general public, through the significant events allocated to the divided business. In this manner, dated April 28, 2015 and issued by each of the three the new company Enersis-2 would be the holding companies, each one of the Board of Directors of the company of the Chilean business established three companies has agreed to analyze the corporate in Endesa-2 and in Chilectra-2 and the company reorganization taking into consideration the best being divided, Enersis would maintain its status interests of the company as well as of all shareholders of holding company for the international business, and other stakeholders, paying special attention to including the shareholding in Endesa and the best interests of the non-controlling shareholders. Chilectra. The new company Enersis-2 would be This process includes several operations and stages; listed on the same stock exchange markets where however, all of them aim at the same objective. is currently listed Enersis, and it will be subject to the provisions of Title XII under Decree Law 3,500 The description of the operations is as follow: enacted on November 4, 1980. (a) To agree to divide both Endesa and Chilectra, (c) Each one of the division approval agreements through the creation of two new companies, of the companies Endesa and Chilectra would to these effects denominated “Endesa-2” and remain subject to the compliance of the following “Chilectra-2”, respectively. Each of the new precedent conditions: (i) that the appropriate companies created from such division will be competent authorities approve the allocation and allocated the totality of the business that each of modification of the permits, concessions and/or the divided companies actually develops in Chile. administrative authorizations of each of the divided In other words, it would be allocated the part companies of Endesa and Chilectra for their of the equity comprised, among others, by the transfer or assignment to each of the respective assets, liabilities and corresponding administrative new companies that will be created from such authorizations that each of the divided companies division, and (ii) that the respective Shareholders’ currently has in Chile; which, in each case Meetings approve the division of Endesa and represents more than 50% of the assets of each Chilectra, as the case might be, pursuant to the of the divided companies. On the other hand, terms and conditions set forth under letter (a), and each of the companies to be divided will maintain in the case of Enersis, pursuant to the terms and the equity that corresponds to the international conditions set forth under the preceding letter (b). business (mostly, shareholdings in companies domiciled in Argentina, Brazil, Colombia and The division agreement of the company Enersis, in Peru). turn, would be subject to the precedent condition Significant Event of the Entity 251 of the completion of the divisions of the companies corporations Enersis, Endesa and Chilectra, does Endesa and Chilectra in the manner indicated in not constitute an operation between related the preceding letter (b). parties for the companies indicated, in accordance with the norms set forth in Title XVI under the It should be noted that, since these operative Chilean Companies Act, Law 18.046. In the case companies have a great number of contracts, of a division, it does not exist an operation of permits, concessions and administrative the company subject of the division with a third authorizations, it is estimated that the approval party and, consequently, there is a lack of the process compared to the assignment of the latter basic assumption for the application of the norms to the new companies may take several months, regarding operations between related parties set and could be extended beyond December 31, forth in Title XVI under Law 18,046. Additionally, for 2015. the same reasons that are explained in the Official Letter N° 106 issued by Superintendence on (d) On the other hand, subsequent to the completion February 2, 2012, it is appropriate to consider that of the divisions above mentioned, a merger will the division of a corporation are governed by rules be completed by absorbing two of the already that are specific to the Shareholder Agreements divided companies into the third divided company with respect to company division as established (Enersis). under Law N° 18,046 and its regulations and, given their specialty, prevail over the norms that The final result would be that the continuing regulate operations between related parties. company after the merger (post-merger) would directly develop the international business, and 2. To confirm that the merger of the corporations Enersis-2 (post-division, in a indirect way through resulting from divisions described in the previous the shareholding of its subsidiaries Endesa-2 and question does not constitute an operation Chilectra-2) would develop the Chilean business; between related parties, in accordance with norms which in this case, would represent a large of Title XVI under Law 18,046. In this sense, in simplification compared with the current structure. accordance with what was pointed out by that Superintendence through its Official Letter N° 106 (e) The resulting companies from the above-indicated dated February 2, 2012, it is important to consider divisions and, in its case, the described merger, that “merger operations are specifically regulated may alter their corporate purposes in favor of by Title IX under Law N°18,046, which constitutes those deemed more convenient considering the special regulations for them”. The referred Official development of their future activities. Letter continues its argumentation by stating that “As stated above, and with respect to your To the presentation is enclosed a letter dated April second inquiry, norms that regulate operations 27, 2015 issued by Enersis, which contains a table between related parties set forth in Title XVI under that describes the various steps into which the Law N° 18,046 are not applicable to mergers; but reorganization is divided. Also, Annex 1 is enclosed instead applicable by the provisions that regulate to the present document, which contains a table specifically and particularly merger agreements, to showing the respective shareholdings of certain that effect determined by the law”. directors of Enersis, Endesa and Chilectra in the companies, Enersis and Endesa, as well as their 3. On the assumption that the Superintendence may bondholding. consider that, either divisions described in the first inquiry or the merger described in the second In the abovementioned context, we hereby submit to inquiry, constitute an operation between related you the following inquiries: parties in accordance with norms set forth in Title XVI under Law 18,046, we hereby request to 1. To confirm that the division of the three confirm which companies or individuals involved in 252 2015 Annual Report Enersis each of the abovementioned operations would be, Institution has concluded that in the case of a precisely and in each specific case, considered a company division, the distribution of the equity of related party and to whom. the company that is being divided corresponds to the allocation of quotas of a juridical universality 4. To confirm that the division of the companies and, consequently, the transfer or transmission Enersis, Endesa and Chilectra, respectively, where of assets does not exists; but instead, there is each newly-incorporated company is assigned a specification of preexisting rights; which, by assets which could represent more than 50% of virtue of the decision adopted by the company, the assets of the company that is being divided, remain established in an independent legal entity. the withdrawal right established in article 69, Consequently, the transfer of the assets that takes paragraph 4, numeral 3 under Law N° 18,046 place on the occasion of the company division is not applicable, since there is no “disposal” does not properly constitute a contribution since as defined by article 67, paragraph 2, numeral 9 there is no disposal involved”. under the same law; but rather an assignment. To that effect, the law defines corporate division We remain at your entire disposition in order to as “the distribution of its equity between itself provide any additional background information and one or more corporations to be incorporated that you may consider convenient to answer the to that effect”. It has thus been understood by inquiry hereby submitted. this Superintendence upon stating in its Official Letter N° 2,048 dated June 14, 1989 that “Upon Annex 1 referring this institution (the division) as a process of distribution of equity between legal entities Shareholdings of certain board members of Enersis, Endesa that shall develop independent activities, but and Chilectra in the companies, Enersis and Endesa, as well maintaining jointly the identities of an initial equity as their bondholdings. and the same shareholders with equal rights to the referred equity, such distribution necessarily corresponds to an allocation of quotas of the juridical universality which represents the equity Shareholdings of Board members Hernán Somerville (ENI) of the company being divided, carried out by the Carolina Schmidt (ENI) shareholders of the legal person via a simple statutory reform [reform of by-laws]. Consequently, in the opinion of this Superintendence it is logical Isabel Marschall (EOC) Hernán Felipe Errázuriz C, (Chilectra) to conclude that the division of a corporation, Marcelo Liévenes (Chilectra) ENI EOC Chilectra 3,760,000 shares 458,851 shares 0 Uf 1,000 bonds 0 11,000 shares 12,980 shares 26,633 shares 49,409 shares 6,862 shares 0 0 0 0 0 the transfer or transmission of assets does not exist; but instead, there is aspecification of the preexisting rights; which, by virtue of a company decision adopted pursuant to the form and NOTE: In all cases the shares/bonds are owned indirectly through investment companies of the respective board members, except in the case of Marcelo Llévenes who is a direct property owner. majority established in the law, remain established The response of the Superintendence of Securities and in independent legal entities, conforming in that Insurance through the official letter N°15443 received on same agreement the incorporation act of the July 20, 2015 and is described below: new companies being created.” Additionally, it has thus been stated by the Chilean Internal Via reserved inquiry dated May 18th, the company Revenue Service (SII, in its Spanish acronym) in its submitted to this Superintendence several questions Resolution N° 68 enacted on 1996, indicating as related to the “corporate reorganization process” follows: “With respect to this type of companies whose fundamental aspects are described in the reorganization (divisions) of any kind, it should be aforementioned presentation as well as in the pointed out that a pronouncement issued by the significant events dated April 22 and April 28, 2015, Superintendence of Securities and Insurance, this and in the response to the Official Letter N° 8,438 Significant Event of the Entity 253 of 2015, filed with this Superintendence on April 27, described in article 146 under the Chilean 2015. In summary, the first stage implies the division Companies Act does not meet such requirement. of Enersis S.A., Empresa Nacional de Electricidad S.A. and Chilectra S.A. and, subsequently, a merger Also, the division of companies is expressly by incorporation of some of the resulting companies regulated in Title IX under the Chilean Companies from such divisions. Act, which constitutes a special norm with specific requirements that must be comply in these cases Before analyzing your presentation, it should be noted and that are basically established in articles 94 that since the facts of the case have been to public and 95 under the Chilean Companies Act, and knowledge and given the public faith and the interest in articles 147 and following under the Supreme of the investors committed in this case, it is justified, Decree N° 702 enacted on 2011 by the Ministry in accordance with the provision paragraph two, for Finance which approved the Companies article 23 under Decree Law N° 3,538 enacted on Regulations (“Chilean Companies Regulations”), 1980, the information is not longer consider reserved as well as for securities issuers, in section II under and it shall become available to the public as of the General Norm N° 30 enacted on 1989 by this date of the present Official Letter. Superintendence. In relation to your inquiries and in function of the Consequently, norms of Title XVI under the background submitted by that company, which does Chilean Companies Act cannot be applicable to the not include the detail of how each stage of the division of a corporation, but only can be applied process will be materialized, it is my duty to point out the provisions that specifically regulate on division the following: agreements. 1. It should be noted that, as pointed out by that 3.· Regarding your second inquiry, “confirm that company, the process of “corporate reorganization”, the merger of the resulting corporations from which contains various stages, must be analyzed the divisions described in the previous question both individually and as one operation, as the does not constitute an operation between related intended purpose is understood to be achieved only parties, in accordance with norms of Title XVI when each and every one of the proposed stages under Law N° 18,046”, it should be noted that, are carried out, i.e. the divisions and mergers to in accordance with article 99 under the Chilean be carried out cannot be examined one by one as Companies Act, a merger consists in the union of independent and autonomous operations. one or more companies into a one that succeeds 2. Considering the foregoing, with regard to your this type of operation, as opposed to the division, it in all its rights and obligations, reason why in first inquiry, which is, to “confirm that the division a third party is involved. of the three corporations: Enersis, Endesa and Chilectra does not constitute an operation between Despite the foregoing, and in accordance with related parties for the companies indicated, in the criteria used by this Superintendence in its accordance with the norms set forth in Title XVI Reserved Official Letter N° 106 of February 2, 2012, under the Chilean Companies Act Law N° 18,046”, corporate mergers are expressly governed by Title it should be noted that, in accordance with article IX of the Chilean Companies Act, which constitute 94 under Law N° 18,046 (“the Chilean Companies a special norm for these operations, with specific Act “), the division of a corporation consists in the requirements that must be comply by the merging distribution of its equity between itself and one companies, set forth in Title IX under Law N°18,046 or more corporations legally incorporated to that and in articles 155 and following under the Chilean effect, reason why this type of operation does not Companies Regulations, and for securities involve a third party different from the company issuers, in Section II under General Norm N° 30 of that is being divided, therefore, the relationship the Superintendence; namely: a special approval 254 2015 Annual Report Enersis quorum, the dissident shareholders’ withdrawal by this Superintendence in the Official Letter N° right, and prior information that should be to 2,048 of June 14,1989, and confirmed through the the shareholders disposal in the corresponding Official Letter N° 1,929 of January 20, 2014, in the deadlines. sense that in the division of corporations, there is no assets disposal from the continuing company Consequently, in mergers involving one or more to the new company resulting from the division, corporations, norms set forth in Title XVI under reason why the provisions of numeral 2 of the the Chilean Companies Act are not applicable, but fourth paragraph of article 69 under the Chilean only those provisions that specifically regulate the Companies Act would not be applicable to the merger agreements. division. 4. - Without prejudice to the foregoing, we believe 7.- Without prejudice to the aforementioned, it should necessary to point out that norms on operations bear present the following: between related parties of Title XVI under the Chilean Companies Act must not be used in a. All the obligations that the current legislation the stages before exposed of this “corporate establishes for directors are based on the reorganization”, considered as a single operation, concept of “best interests”. In fact, we can whereas, in consideration of the reasons mention various provisions of the Chilean previously exposed to the stages of the “corporate Companies Act that establish this principle, reorganization” it only corresponds to apply such as third paragraph of article 39, related those provisions that specifically regulate such to the obligation of directors to ensure the agreements. “interests” of all shareholders and not just those who elected them; numeral 1 of article 5.- Regarding your third inquiry, “on the assumption 42, under which specify that directors may that the Superintendence may consider that, not act if is not in the “best interests”; and, either the divisions described in the first inquiry numeral 7 of article 42 which sanctions “any or the merger described in the second inquiry, act” contrary to “best interests”. constitute an operation between related parties in accordance with norms set forth in Title XVI under b. In that understanding, the law has established Law N° 18,046, we hereby request to confirm specific obligations for directors including: i) to which companies or individuals involved in each be informed “fully and in a documented way of of the abovementioned operations would be, all matters related to the company’s progress” precisely and in each specific case, considered to (right-duty of being informed contained in be a related party and to whom”, no answer will the second paragraph of article 39 under the be given here considering what was previously Chilean Companies Act); and, ii) to “employ informed. in the exercise of their functions the same attention and diligence that men usually employ 6.-· Regarding your fourth inquiry, “to confirm that in their own businesses” (due diligence stated the division of the companies Enersis, Endesa in article 41 under the Chilean Companies Act). and Chilectra, respectively, where each newly Both duties, to be informed and to act with incorporated company is assigned assets which attention and diligence, imply observance of could represent more than 50% of the assets the provisions of article 78 under the Chilean of the company being divided, the withdrawal Companies Regulations. right set forth in article 69, paragraph 4, numeral 3 under Law N° 18,046 is not applicable, since c. Regarding the legal responsibilities and there is no “disposal” as defined by article 67, obligations aforementioned, the Board of paragraph 2, numeral 9 under the same law, but Directors must have sufficient, ample and timely rather an assignment”, the criterion established information at the time of adopting decisions Significant Event of the Entity 255 regarding the “corporate reorganization” as a - Detailed information on the objective and whole, with their various stages, as the divisions benefits expected from the division, as well as and mergers cannot be analyzed independently their terms and conditions; or autonomously. Such information should justify the proposal that is finally taken by the - Report that includes the asset, liability and Board of Directors to the Shareholders’ Meeting equity accounts of the entity to be divided, summoned to adopt the respective agreement, a column of adjustments, if appropriate, considering that such proposal is the most and finally, the balances that represent convenient for the best interests. the continuing and the new entities, as corresponds; and, In this regard, the justifications for the proposal which the Board of Directors will - A description of the main assets allocated and finally make should contemplate, among the liabilities delegated to the new entities. others, the objectives and benefits expected of the corporate reorganization, as well as the In addition and on the same time, in accordance terms and conditions of this, and the various with the provisions a) and g), article 4 under consequences, implications or contingencies Decree Law N°3,538 enacted on 1980, and that the proposal might bring, e.g., operational in the last paragraph of article 147 under and taxation issues, if applicable, as well as the Chilean Companies Regulations, the any implications regarding the use of proceeds company´s management should provide the agreed for the 2012 capital increase of the public in general and this Superintendence, the company. following additional and preliminary background information referring to the merger processes: d. Such information must be submitted to the shareholders disposal on a timely manner, - Detailed information on the objective and the given that the various stages of the corporate benefits expected from the mergers; and, reorganization will be approved by the respective Shareholder Meetings of each of - Reports issued by independent expert the companies involved, and therefore, whom appraisals on the estimated value of the should take the decision should have all the entities that are merged and estimates of the elements necessary for this, one of which is exchange ratios of the corresponding shares. the benefit that the operation as a whole brings for the best interests. e. Considering the complexity of the operation, the management may consider other measures in Under this context and in accordance with order for shareholders to have more elements the provisions a) and g) article 4 under Decree for a suitable analysis of this operation, such as Law N°3,538 enacted on 1980, and article 147 an express pronouncement by the Directors’ of the Chilean Companies Regulations, it is Committee on the aforementioned corporate necessary that the company’s management reorganization the subject of your inquiry. provides to the public in general and to this Superintendence, as soon as the Board f. Finally, the expert appraisals that become of Directors resolves on the corporate involved in the process should bear in mind their reorganization and at least 15 days prior to the duties and responsibilities in accordance with date of the Shareholders’ Meeting which should current legislation, especially the responsibility pronounce on the division, with the following established in article 134 of the Chilean background information, both concerning the Companies Act for the expert appraisals. own company as the other companies involved in such corporate reorganization: 8.- Consequently, this Superintendence instructs 256 2015 Annual Report Enersis the company’s management in the corporate 2.- Enersis, in turn, would be divided, creating a reorganization object of your inquiry –and especially new company (“Enersis Chile”) in which the its directors- in order to take into account that shareholdings and assets of Enersis in Chile, expressed above, which under no circumstance including the shareholdings in Chilectra and is intended to establish exhaustively all the Endesa Chile, (following the division of these measures that should be implemented by the companies as described previously) and liabilities Board of Directors of your company and the other linked thereto will be allocated. It will remain in companies involved, in order to duly safeguard the divided Enersis (which it will be denominated the best interests. You are also instructed that the “Enersis Américas” following the division), the present Official Letter be read completely at the international shareholdings of Enersis as well as next Board of Directors meeting held, recording its shareholdings in the new companies, Chilectra such act in the minutes of the meeting. Américas and Endesa Américas, that were created as a result of the aforementioned division 9.- At last, in accordance to the powers granted of Chilectra and Endesa Chile and the liabilities by Decree Law N°3,538 enacted on 1980, this related to them. Superintendence will continue to examine and oversee both the corporate reorganization process 3.- Once the aforementioned divisions are and the labor performed by directors, experts materialized, Enersis Américas would absorb appraisals and management of the entities through a merge Chilectra Américas and Endesa involved subject to audit. Américas, and therefore, the latter companies would be dissolved without winding up, grouping - On July 27, 2015, regarding to the initiative informed all the non-Chilean participation of the Enersis by the Company through the Significant Events dated Group. This merger, which involves two newly April 22, 2015 and April 28, 2015, and in compliance incorporated companies (Endesa Américas and with provisions of the Official Letter N° 15,443 issued Chilectra Américas), shall be carried out as soon on July 20, 2015 by the Superintendence of Securities as legally possible pursuant to the provisions of and Insurance, we hereby inform that the Board of the applicable regulations. Directors of Enersis, in its extraordinary session held today, has unanimously resolved that in the case The corporate scheme that the Board of Directors that the transaction to separate the generation and agreed to continue analyzing the corporate distribution activities in Chile from those performed reorganization would be as follows: by the Enersis’ Group outside Chile, the corporate reorganization would be carry out through the following corporate transactions: 1.- Each subsidiaries, Chilectra S.A. (“Chilectra”) and Empresa Nacional de Electricidad S.A. (“Endesa Chile”) would be divided, and therefore, will cause the emergence of: (i) a new company from the division of Chilectra (“Chilectra Américas”) in which the shareholdings and assets that The companies denominated Enersis Chile and Chilectra owns abroad, as well as the liabilities Enersis Américas would be domiciled in Chile linked thereto, will be allocated into it; and, (ii) a and their shares would be listed on the same new company from the division of Endesa Chile stock exchanges as the existing companies of the (“Endesa Américas”), in which the shareholdings Enersis Group. None of these abovementioned and assets that Endesa Chile owns abroad, as transactions would require additional financial well as liabilities linked thereto, will be allocated contributions from shareholders. into it. Significant Event of the Entity 257 The Enersis’ Management has received a mandate - On August 13, 2015, the following significant event from the Board of Directors to continue to develop was informed: the above-described operation with strictly compliance of the provisions of the Official Letter With respect to the proposed corporate restructuring N° 15,443, in order to propose, where appropriate, reported by the Company through Significant Events to its shareholders and its subsidiaries Endesa dated April 22, April 28, and July 27 of this year, we now Chile and Chilectra, the required steps to complete inform you that the Directors’ Committee of Enersis this corporate reorganization. It is estimated that S.A., at its extraordinary meeting held today August the first part of such transaction (referring to the 13, by the majority of its members, appointed IM Trust aforementioned divisions of Enersis, Endesa Chile as Financial Adviser of the Directors’ Committee. and Chilectra) may be agreed by their respective Board of Directors by defining a proposal that would As financial advisor, IM Trust has been appointed to be submitted to the approval of the respective work within the scope and objective of The Chilean Shareholders’ Meeting within the last quarter of Companies Act Law, article 147, regarding independent this year and that the corporate reorganization appraisers, and also to comply with the general terms could end during the third quarter of 2016. and conditions set forth by the Superintendence for Securities and Insurance Companies in its Official Along these lines, it should be noted that the Letter N°15443. Superintendence of Securities and Insurance has confirmed through the mentioned Official Letter N° - On September 15, 2015, the following significant 15,443 that a corporate reorganization of this type event was informed: would not constitute an operation between related parties pursuant to the provisions established in In connection with the corporate reorganization Title XVI under the Chilean Companies Act Law initiative informed through significant events dated N°18,046. However, among other aspects, the April 22, April 28, and July 27, 2015, and which is Superintendence pointed out that must be made currently under review and analysis by the Board available to all shareholders summoned to resolve of Directors of the Company, it is reported that the the referred divisions (first step of the corporate Board of Enersis S.A., at an extraordinary session reorganization), reports prepared by independent held today September 14, has decided by a majority expert appraisers regarding the estimated of its members, to appoint Mr. Rafael Malla as value of the merging entities and estimations independent appraiser for the purpose of complying corresponding to exchange ratios. with the requirements of the Superintendence of Securities and Insurance in Official Letter No. 15443 Also, the Superintendence of Securities and of July 20, 2015, to issue a report of the estimated Insurance has suggested that, considering the value of the companies that eventually will be merged complexity of the transaction, the Company’s and estimations of the corresponding exchange ratios management may consider other measures to if the corporate reorganization is carried out under the enable shareholders to have additional elements terms described in the significant event dated July 27, in order to adequately analyze this transaction. To 2015. that effect, and in order to give major guarantees of transparency to the process, the Board of Directors - On November 5, 2015 was informed as significant of Enersis has resolved that, in case that it decides event regarding that, the majority of the members of to propose the above-described transaction, it will the Board of Directors of Enersis S.A. (“Enersis” or be agreed that the Directors’ Committee explicitly the “Company”), in the extraordinary meeting held pronounce on the corporate reorganization. on November 5, 2015, agreed, with one dissenting Enersis will continue to keep informed the market information, reports and opinions, and given the on the progress of this proposal. expected benefits from the corporate reorganization, vote, after completing a study of relevant background 258 2015 Annual Report Enersis the terms and conditions of such reorganization external auditors of Enersis and Enersis Chile, both as well as its consequences, implications or as of October 1, 2015, and which provide, among contingencies, that the proposed reorganization of other things, the allocation of assets, liabilities, the Enersis Group (the “Reorganization”), contributes and shareholders’ equity between the Company to the corporate purpose. Therefore, the Board of and Enersis Chile. Directors has convened a new extraordinary meeting (v) Report of the independent expert appointed by of Enersis’ Directors in order to discuss the possibility the Board of Directors of the Company, Mr. Rafael of convening an Extraordinary Shareholders’ Meeting Malla, including the estimated value of the entities to inform the shareholders of the Reorganization and to be merged and the estimated exchange ratio request their approval, as applicable. of the corresponding shares in the context of the Reorganization Furthermore, It is considered appropriate to (vi) Report of the financial advisor appointed by the communicate that the Board of Directors has Directors’ Committee of the Company, IM Trust, agreed to share the “estimated exchange ratio” as with its findings regarding the Reorganization. background information for the possible merger of (vii) Report of the Directors’ Committee of the Company Endesa Américas and Chilectra Américas into Enersis with its findings regarding the Reorganization. Américas as part of the Reorganization, such range (viii) Document describing the Reorganization and its being: (a) for each share of Endesa Américas, its terms and conditions. shareholders would receive between 2.3 (min.) and (ix) The objectives and expected benefits of the 2.8 (max.) shares of Enersis Américas and (b) for Reorganization and its consequences, implications each share of Chilectra Américas, its shareholders or contingencies, such as those of an operational would receive between 4.1 (min.) and 5.4 (max.) or tax nature. shares of Enersis Américas. All reports that refer to (x) Determination of the number of Enersis Chile these exchange ratios are being made available to the shares to be received by Enersis shareholders. Company’s shareholders and the general market, as (xi) Agreement put forward by the majority of the noted below. Board of Directors and with one vote against, with the proposal of the Board of Directors of the The Board of Directors considers it appropriate to Company with respect to the Reorganization. make available to the shareholders all records that (xii) Draft of the Bylaws of Enersis and Enersis Chile are listed below which have served as the basis for subsequent to the Spin-Off. discussing the Reorganization as of today on the company’s website: www.enersis.cl: - On November 6, 2015 was informed as significant event, as of this date, that Mr. Luca D’Agnese, the (i) Consolidated Audited Financial Statements of CEO of the Company, will expose today the attached Enersis as of September 30, 2015, which will be presentation to investors and analysts of the market, used for the spin-off (the “Spin-Off”) from Enersis in order to keep them promptly informed on the of a new company to be called Enersis Chile S.A. operation of Enersis Group’s corporate reorganization, (“Enersis Chile”) from which the Board of Directors of Enersis S.A. (ii) Report of the Board of Directors of Enersis on and its subsidiaries Endesa Chile and Chilectra S.A. the absence of significant changes to the assets, pronounced yesterday, as published yesterday in their liabilities or equity accounts occurring after the respective Significant Event. reference date of the respective balance sheet of the Spin-Off. The attached presentation includes relevant (iii) Description of key assets and liabilities allocated information about future investments and financial to the new company resulting from the Spin-Off, targets of Enersis Group, subject to the success of Enersis Chile. the corporate reorganization process aforementioned. (iv) Proforma Consolidated Statements of Financial For the 2016-2019 period, we expect accumulated Position, with attestation report by the respective investments for US$ 1.7 billion in Chile and US$ 4.5 Significant Event of the Entity 259 billion in Peru, Colombia, Brazil and Argentina, totaling 1. Information on the proposed corporate US$ 6.2 billion. Additionally, the following financial reorganization of Enersis (the “Reorganization”), information is included and referred to the eventual which consists of (i) the spin-off (the “Spin-Off”) operation of corporate reorganization. of Enersis and its subsidiaries, Empresa Nacional de Chile S.A. (“Endesa Chile”) and Chilectra S.A. Enersis Chile - Financial Targets (“Chilectra”) in order to separate the generation In bn USD EBITDA Ebitda Margin NET INCOME 2016 1.2 33% 0.5 2017 1.4 38% 0.6 CAGR (16-19’) 11% 2019 1.6 39% 0.7 11% and distribution activities performed in Chile from those performed outside of Chile and (ii) the subsequent merger of the companies that own participations in non-Chilean businesses. Enersis Américas (post Merger) - Financial Targets Reorganization that are relevant in accordance 2. Supporting information that underlies the proposed In bn USD EBITDA Ebitda Margin NET INCOME 2016 2.4 33% 0.6 2017 2.8 36% 0.9 CAGR (16-19’) 11% 2018 3.3 37% 1.1 22% with the provisions of Official Letter No. 15,443 issued on July 20, 2015 by the Superintendence of Securities and Insurance, to the shareholders disposal as of November 5 and 9, 2015, respectively and consisting of: (i) Audited Consolidated Financial Statements of A copy of this presentation is also available on the Enersis as of September 30, 2015, which will Company website (www.enersis.cl) and the indicated be used for the Spin-Off. preventions included in it must be taken into (ii) Report of Enersis’ Board of Directors on the consideration. absence of significant changes to the assets, liabilities or equity accounts occurring after the - On November 9, 2015, was informed as significant reference date of the respective balance sheet event that the report of Bank of America Merrill Lynch, of the Spin-Off. the financial advisor appointed by the Board of the (iii) Description of principal assets and liabilities Directors of the Company, has been made available to allocated to the new company resulting from the shareholders and the market with its conclusions the Spin-Off, which will be named Enersis regarding the Reorganization of the Enersis Group. On Chile S.A. (“Enersis Chile”). November 5, 2015, the Boards of Directors of Enersis (iv) Pro forma Consolidated Statements of and its subsidiaries Endesa Chile and Chilectra S.A. Financial Position, with attestation report by pronounced about this Reorganization via their the respective external auditors of Enersis respective significant events filed on that date. and Enersis Chile, both as of October 1, 2015, and which provide, among other The presentation is available at the Company’s things, the allocation of assets, liabilities, and website (www.enersis.cl). shareholders’ equity of both companies. (v) Report of the financial advisor appointed by the - On November 10, 2015 was informed as significant Board of Directors of the Company, Bank of event that, in its session held today, the majority of the America Merrill Lynch, with its conclusion on members of the Board of Directors of Enersis with one the Reorganization. vote against has agreed to summon an Extraordinary (vi) Report of the independent expert appraisal Shareholders’ Meeting (“ESM”) for December 18, 2015 appointed by the Board of the Company, Mr. at 10:00 a.m., to be held at Espacio Riesco, located at Rafael Malla, including the estimated value of Av. El Salto 5,000, Huechuraba, Santiago, Chile. the entities to be merged and the estimated The purpose of this meeting is for the shareholders to the context of the Reorganization. acknowledge and rule on the following issues: (vii) Report of the financial advisor appointed by the exchange ratio of the corresponding shares in 260 2015 Annual Report Enersis Directors’ Committee of the Company, IM Trust, associated to them, as well as all other assets and with its conclusions on the Reorganization. liabilities not expressly assigned to Enersis Chile (viii) Report of the Directors Committee of in the Spin-Off. the Company with its conclusions on the Reorganization. 4. Approve that the Spin-Off agreed to by the ESM (ix) Document describing the Reorganization and will be subject to conditions precedent including its terms and conditions, in which the terms that the ESM minutes in which the Spin-Offs of the merger and the withdrawal rights are of Endesa Chile and Chilectra are approved and explained. have been correctly recorded as a public deed, (x) The objectives and expected benefits of the and their respective excerpt have been registered Reorganization, as well as its consequences, and published duly and promptly in accordance implications or contingencies, such as those of with the law. Additionally, and in accordance with an operational or tax nature. Article 5 in relation with Article 148, both under (xi) Determination of the number of Enersis Chile the Chilean Companies Regulation, approve that shares to be received by Enersis shareholders. the Spin-Off shall take effect on the first calendar (xii) Agreement put forward by the Board of day of the following month after the “Public Deed Directors, with the proposal of the Board of on Fulfillment of the Conditions for the Spin-Off of Directors of the Company with respect to the Enersis,” as explained in the following numeral, is Reorganization. granted, notwithstanding the promptly fulfillment (xiii) Draft of the Bylaws of Enersis and Enersis of the formalities of registration in the Commercial Chile following the Spin-Off. Registry and publications in the Diario Oficial of the excerpt and recording as a public deed of 3. Approve, pursuant to the terms of Title IX under the ESM minutes that approves the Spin-Off of the Chilean Companies Act Law N°18,046 Enersis and the creation of Enersis Chile. and paragraph 1 of Title IX under the Chilean Companies Regulations, and subject to the 5. Authorize the Board of Directors of Enersis to conditions precedent indicated in numeral 4 grant the necessary powers to sign one or more below, the proposal of demerger of the Company documents that are necessary or appropriate to into two companies, resulting from the Spin-Off. comply with the conditions precedent to which The new corporation, Enersis Chile, a new publicly the Spin-Off is subject, certify the assets subject held limited liability stock corporation, which will to registration that are assigned to Enersis Chile, be governed by Title XII under D.L. 3,500 and to and any other representations that are considered which it would be allocated the equity interests, necessary for these purposes, and especially, assets and the associated liabilities of Enersis in grant a public deed within 10 calendar days of the Chile, including shareholding in each of Chilectra date on which the last of the Spin-Off conditions is and Endesa Chile already spun-off. The totality of met, representing that the conditions precedent to Enersis shareholders will participate in Enersis which the Spin-Off is subject have been satisfied. Chile in the same proportion that they had in the Such public deed shall be named the “Public Deed Enersis’ capital, with a number of shares equal of on Fulfillment of the Conditions for the Spin-Off of what they had in the spin-off company (ratio 1:1). Enersis,” which should be registered in the corporate Following the Spin-Off, Enersis will be renamed record books of Enersis and Enersis Chile in order Enersis Americas S.A. (“Enersis Américas”) and to facilitate verification of compliance with the it will retain the equity interests of Enersis related conditions to which the Spin-Off was subject. to non-Chilean assets, including its shareholding in the resulting companies from the Spin-Off of 6. Approve the capital reduction of Enersis as a result Chilectra and Endesa Chile, Chilectra Américas of the Spin-Off, and the distribution of corporate S.A. (“Chilectra Américas”) and Endesa Américas equity between the spin-off company and the S.A (“Endesa Américas”), and the liabilities created company. Significant Event of the Entity 261 7. Approve changes in the Bylaws of Enersis, which (ii) Article Nine Bis is not included because reflect the Spin-Off as well as the consequent applicable law repealed it; reduction of capital, by modifying the following (iii) In Article Twenty-Four Bis, reference to Articles articles: Nine Bis and Thirty-Seven Bis has been removed, as there is no reference to them in the text; (i) Amendment of Article One, in order to change (iv) In Article Forty-Four, the Company is subject the corporate name of the Company, to be to Resolution No. 667 of the Honorable renamed Enersis Américas S.A.; Resolution Commission, dated October 30, (ii) Amendment of Article Four, in order to expand 2002; understanding that the restrictions its business to include loans to related regarding Enersis Américas shall not apply to companies; Enersis Chile; (iii) Amendment of Article Five, reflecting the (v) Incorporate into their Bylaws one transitory reduction of Enersis capital as a consequence article stating that since its entry into force, of the Spin-Off, remaining the same number Enersis Chile will submit in advance, and and type of shares; voluntarily to the rules established in Article 50 (iv) Creation of a new Article Forty-Four, to show Bis of the Chilean Companies Act relating to that the Company will continue to be subject to the appointment of independent directors and Resolution No. 667 of the Honorable Resolution the creation of a Directors’ Committee; Commission, dated October 30, 2002 with the (vi) Replacement and inclusion of other Transitory understanding that (a) the restrictions shall Provisions that apply as a result of the Spin-Off. not apply to Enersis Américas with respect to Enersis Chile and (b) considering that Enersis 10. Approve the number of Enersis Chile’s shares to Américas shall not participate in any way in be received by Enersis’ shareholders. the relevant markets within the Republic of Chile, may merge with Endesa Américas and 11. Introduce shareholders to the estimated terms Chilectra Américas; and of the possible merger of Endesa Américas and (v) Grant of a revised text of the Bylaws of Enersis. Chilectra Américas into Enersis Américas. 8. Appoint the interim Board of Directors of Enersis 12. Appoint the external audit firm for Enersis Chile. Chile in accordance with article 50 bis under the Chilean Companies Act. 13. Appoint the Account Inspectors, and alternates, 9. Approve the bylaws of the new resulting company, for Enersis Chile. Enersis Chile, which in its permanent provisions 14. Inform shareholders of agreements regarding differ from those of Enersis in the following transactions with related parties under Title XVI matters: of the Chilean Companies Act, Law N°18,046, executed in the period since the last shareholders’ (i) In Article Five on share capital, which indicates meeting. that Enersis Chile will have a capital of the amount of two billion, two hundred and 15. Report on authorizations granted to Ernst & twenty-nine thousand one hundred and eight Young, External Auditors of Enersis S.A., to deliver million nine hundred seventy-four thousand documents and reports related to external audit five hundred and thirty-eight Chilean pesos services provided to Enersis S.A., to the Public (Ch$2,229,108,974,538) divided into forty-nine Company Accounting Oversight Board (“PCAOB”) thousand ninety two million seven hundred of the United States of America. seventy-two thousand, seven hundred sixty-two (49,092,772,762) registered ordinary shares, all 16. Instruct the Board of Directors of Enersis Chile of the same series without par value; that upon the effectiveness of the Spin-Off, and 262 2015 Annual Report Enersis as soon as practicable thereafter it should apply from the Superintendence of Securities and Insurance for the registration of the new company and their (the “Official Letter”), which required certain express respective shares with the SVS and the Securities statements by the Board of Directors, in an ordinary and Exchange Commission of the United States meeting session held today, the Board of Directors of America, and on the stock exchanges where its of Enersis S.A. (“Enersis”), adopted the resolutions shares will be traded. stated below. 17. Instruct the Board of Directors of Enersis Chile to Similarly, Enersis received from its controlling approve the powers of attorney of the company. shareholder (Enel S.p.A., “Enel”) a letter, which is The Board should make a statement with regards to the reorganization process of the Enersis group attached as an annex, regarding several issues related to all the agreements needed to carry out the (the “Reorganization”). Division, in the terms and conditions that the Board approves, and also to grant the powers deemed The resolutions referred to and adopted today by a necessary, especially those required to legalize, majority of the Board of Directors members and with materialize and carry forward the agreements one dissenting vote from director Rafael Fernández for the division and the others undertaken by the Morande exclusively with respect to resolutions Board. three, five and six, are the following: Shareholders may obtain a full copy of the One: Consider Enel’s proposal included in its letter documents that explain and support the matters dated November 23, 2015, which states that, in that are subject to knowledge and resolution of the event that all of the transactions contemplated the Board at our registered office, located in Santa in the Reorganization are consummated, Enel Rosa 76, Floor 15 (Investor Relations Department), will, or will direct one or more of its subsidiaries Santiago de Chile, as of this date. Also, starting to, negotiate an agreement with Endesa Chile on November 5 and 9 respectively, they will be regarding the joint development of renewable available to the shareholders at the Company energy projects in Chile. website: www.enersis.cl. Two: Consider Enel’s commitment included in its Additionally, the Board of Directors by the majority letter dated November 23, 2015, which states that of its members and with one vote against, agreed while Enel Iberoamérica, S.L. remains the majority to empower the CEO of the Company, within a shareholder of Enersis, Enersis and its successors reasonable time, to make an assessment on the resulting from the Reorganization will be the feasibility of certain measures contained in the Board Enel group’s sole investment vehicles in South of Directors’ Committee reports of Enersis and its America in the fields of generation, distribution subsidiary Endesa Chile, as well as in the resolution and sale of electric energy, except for renewable of Enersis’ Board of Directors and the ones pointed energy investments currently developed by the out by the shareholder AFP Provida, to be presented Enel or any other company within the Enel group. to the Board, to determine the compatibility with However, such exception shall not prejudice any applicable law and the terms and conditions of the agreement described in the preceding paragraph corporate reorganization process that has been ruling by the Board and which have been released to the Three: Announce at this time and at the market and shareholders, through a significant event. Shareholders’ Meeting to be held on December - On November 24, was informed the significant event propose at the Shareholders’ Meeting of Enersis regarding that, in compliance with the Significant Américas on the subject of its merger with Endesa Event, dated November 10, 2015, and, as required by Américas, the exchange ratios, consistent with the Official Letter 25,412, dated November 18, 2015, the range adopted by the Board of Directors of 18, 2015, that it is the intention of Enersis to Significant Event of the Entity 263 the three companies, of 2.8 shares of Enersis Five: Instruct the Chief Executive Officer to propose Américas for each share of Endesa Américas and to the Board of Directors and, if appropriate, to the 5 shares of Enersis Américas for each share of Directors’ Committee, the terms of an agreement Chilectra Américas, in accordance with the other to be negotiated in good faith with Endesa Chile, terms and conditions contained in the “Descriptive under which Enersis will indemnify Endesa Chile Document of the Reorganization and its Terms and for certain duly verified tax costs incurred by Conditions” (made public on November 5, 2015). Endesa Chile, minus any tax benefits obtained by Endesa Américas and Endesa Chile, as a These exchange ratios would be equivalent to result of its spin-off of Endesa Américas, only in an interest of 84.16% in the resulting entity, the case that the merger is not approved before Enersis Américas, for the shareholders of Enersis December 31, 2017 for reasons not attributable Américas immediately prior to the merger; of to Endesa Américas, Endesa Chile or an event of 15.75% in Enersis Américas for the minority force majeure has occurred. The indemnification shareholders of Endesa Américas; and of the expense under such agreement is expected to be 0.09% in Enersis Américas for the minority offset by certain tax benefits obtained by Enersis. shareholders of Chilectra Américas. Consistent with what was announced, this Board of Directors Six: Agree in its entirety with the statements of will take whatever actions are within its power to the Chairman of the Board of Directors and the make the merger succeed, including voting in favor Chief Executive Officer made at the ordinary in the corresponding Shareholders’ Meetings. In meeting held today and expressly approve the any case, this resolution is subject to the absence Board Statement about the matters required of any relevant supervening events prior to such in the Official Letter, that is (i) “The risks, Shareholders’ Meeting that may substantially consequences, implications or contingencies that affect the exchange ratios proposed above. could result from the Reorganization process for the shareholders of Enersis, including at least Four: In order to propose a mechanism that secures those provided for in the report from the Directors’ for the minority shareholders of Endesa Américas a Committee”; (ii) “Feasibility of the measures minimum price equal to current market values for its stated in the Directors’ Committee of Enersis and shares, and mitigate the risk of the merger not taking its affiliate Endesa Chile and consequences that place, the Board of Directors announces that, once the non-compliance of such conditions would the spin-offs of Enersis, Endesa Chile and Chilectra have on the corporate interest of the Company”; become effective according to the Reorganization, and (iii) “Information related to the exchange ratio and unless significant adverse supervening events and the estimated percentage that the minority advise against it from a corporate interest point shareholders should reach in the future merger of view, Enersis (which will be known as Enersis process, so that the Reorganization is effectively Américas following the spin-off of Enersis Chile) realized in accordance with the corporate interest, will conduct a public tender offer (oferta pública de which entails benefits for all shareholders”. adquisición de valores) (the “OPA”) for the shares of Endesa Américas, when it exists, subject to the Enersis shareholders may obtain a full copy of the terms described below. The OPA shall be addressed response to the Board of Directors to the Official to all the shares and American Depositary Receipts Letter No. 25,412 of November 18, 2015 from the (“ADRs”) issued by Endesa Américas not owned Superintendence of Securities and Insurance and by Enersis Américas. As consequence of the the other documents that explain and support the reorganization, it is expected that Enersis Américas matters related above at the registered office, will own 59.98% of the shares of Endesa Américas, located at Santa Rosa 76, Floor 15 (Investor therefore the OPA will be for up to 40.02% of the Relations Department), Santiago, Chile, as of this shares of Endesa Américas and for a price of 236 date. Also, they are available to shareholders on Chilean pesos per share. the Company’s website: www.enersis.cl. 264 2015 Annual Report Enersis - The session of the Board of Directors of Enersis S.A. businesses outside of Chile (this process, comprising held on November 24, 2015, unanimously agreed to all its phases, shall be known from here on as the distribute an interim dividend of Ch$ 1.23875 per “Reorganization”). share on January 29, 2016, attributable to the fiscal year 2015, corresponding to 15% of liquid net income (A) In reference to point 1 of the Letter, we respond as of September 30, 2015, in accordance with the below to the different requests for information Company’s current dividend policy. contained therein. - On November 25, 2015 the significant event was (i) “We are requesting information on whether informed to give an account that as of this date the commitments taken on by Enel, and which Enersis received a letter from its controller, Enel letter dated November 23 mentions, have a S.p.A (“Enel”), which is attached and refers to certain binding character for Enel, and hence Endesa matters related to the corporate reorganization of the may legally call for their compliance from Enersis Group (“the Reorganization”). Enel, explaining the reasons or bases of that potential legal obligation.” - On December 1, 2015 was informed the significant event regarding that today Enersis S.A. has responded According to what has been stated in the letter to the Official Letter No. 26.429 sent by the from Enel S.p.A (“Enel”) dated November 23 Superintendence and in compliance with the above- of this year (“the Enel letter”), as well as the mentioned letter, we hereby attach the response to text of the statement of the Board Directors of that letter as a complement to the significant event Enersis of November 24 of this year that was sent by the Company to that Superintendence on the basis of the response of Enersis. November 24 , 2015. Response to the Official Letter SVS No. 26,429 dated of Enel to “negotiate” or “promote that one or According to this company, the commitments November 27, 2015 (the “Letter”). To whom it May Concern: more of its subsidiaries should negotiate” with Endesa Chile taken on by Enel have a binding character and would be enforceable in case of non-compliance, provided that the conditions We hereby come to provide, within the stipulated set forth there are met (mainly in relation to time limit, our response to the referred Official the fact that the reorganization in all its phases Letter, related to the explanations and clarifications or stages should be complete). requested by the Superintendence (“SVS”) to the significant event of November 24, 2015 and the Effectively, in view of Enersis, the commitments response of Enersis S.A. (“Enersis”) to the Ordinary made in the Letter are legally valid insofar as Official Letter No. 25412, registered on November 25, they are an expression of an agreement of its 2015 (“the response of Enersis”). Board of Directors (Consejo de Administracion), a legal equivalent to the Board of Directors in This letter refers to various aspects related to the Chile and an entity competent to take on the division of Enersis as part of the proposed corporate commitments referred to in the letter. reorganization of the Enersis group consisting of: (i) the division of Enersis and its subsidiary Empresa Such commitments, which would have been Nacional de Chile S.A. (“Endesa Chile”) and Chilectra taken on by the relevant corporate entity - the S.A. (“Chilectra”) in a way that would separate, on one Board of Directors (Consejo de Administracion), side, the businesses of generation and distribution have been expressed in a letter that is signed in Chile and, on the other, the activities outside of by the person with sufficient representation Chile (the “divisions”) and (ii) the subsequent merger powers, granted by the President of Enel of companies owners of corporate interests in S.p.A. Sra. Maria Patrizia Grieco and which Significant Event of the Entity 265 accompanied the Enel letter. As soon as we have companies in the renewable energy sector) a Spanish version of the agreement of the Board have already been identified. of Directors of Enel S.p.A., with due validations, it will be made available to the market. Although it is now possible to observe the existence of certain potential conflicts of Accordingly, in the opinion of Enersis, the interest, the participation of Endesa Chile in commitments made in the Enel letter have renewable energy projects under the terms a binding character and could therefore be described in the Enel letter would also open the enforceable if conditions expressed therein are possibility of sharing experiences and expertise met, notwithstanding what is being indicated between Endesa Chile and Enel Green Power, in the following paragraph. in a manner that would satisfy them both and which would exactly eliminate those conflicts (ii) “In addition to what is being reported in relation of interest that have been observed by some to whether the commitment of Enel is or is not participants of the reorganization process. legally enforceable, we are requesting detailed information on how the commitment of Enel Under the terms set forth in the Enel letter, an to “negotiate” or “promote that one or more agreement as described therein would, first of of its subsidiaries should negotiate” with all, give Endesa Chile the option to participate Endesa Chile would mitigate the risk referred in all the existing assets and projects owned to the need to regulate - successfully and in by Enel Green Power, which would permit this the future – the conflicts of interest that the company to access a significant portfolio of activities of Enel Green Power in Chile with projects of this nature that to date, it has not respect to Endesa Chile represent and how this had. This measure permits to avoid the potential would continue to“ be the main growth vehicle and hypothetical risk that Enel would try to in generation. In attention to that – as can be prioritize its renewable projects in detriment of seen from the Letter - such a commitment Endesa Chile, only that, from now on, Endesa would imply a specific obligation for Enel with Chile does not only have the possibility to Endesa in relation to such conflicts of interest, access the assets and projects which have but only of negotiating some type of regulation already been developed by Enel Green Power of such conflicts with the Chilean society. in the past, but may also decide (according to their own unique business interests) whether Under the terms indicated above, the it wants or not to participate in all that the latter commitment of Enel would represent a binding might develop in the future, once it had the commitment subject to certain conditions opportunity to assess and estimate whether or contained therein, whose aim is to negotiate an not it is convenient. agreement to jointly develop renewable energy projects with Endesa Chile and Enel or any of But furthermore, given that it is a joint its subsidiaries in Chile, in relation to a few development of projects Endesa Chile will thus general principles that have been described in be able to access the know-how of one of the the Enel letter and which are public. main global operators in the renewable energy sector and would also have the possibility It should be noted that this commitment cannot to access and create its own team and be understood on its own, foregoing the work participate in the latest developments in the and analyses that have already been carried out, global industry and its transfer to the Chilean where opportunities for joint cooperation and market. Thus, it also mitigates the risk that the exchange of experience between Endesa Chile Endesa Chile teams - historically more focused (as the country´s first generating company) and on the generation of conventional supplies – Enel Green Power (as one of the first global might move away from such an innovative and 266 2015 Annual Report Enersis specialized sector as the renewable energy agreement of the Board of Directors of Enersis, sector and therefore, their skills might become a competent corporate entity that can decide obsolete and somehow deprive Endesa Chile on this type of operations and (ii) precisely, of those capabilities. Enersis shall be the same company (although under the name of Enersis Americas) that, if the If we take the above into consideration, as an abovementioned conditions are complied with, option that permits to access new opportunities, shall launch the tender offer (OPA) for the whole without decreasing at all the ability to continue of the share capital owned by the minority with the conventional sources projects that shareholders of Endesa Americas. Endesa Chile wants to develop pursuant to its own business interests, the collaboration in Moreover, the declaration can hardly be projects with Enel is additional and in no way formulated in any other way taking into account exclusive. that the abovementioned conditions (among others, reaching a merger agreement by the For that reason, in the opinion of Enersis, companies involved) must be met and that an agreement of this nature would be a the company subject to the future tender offer mechanism that might help to resolve the (OPA) (Endesa Americas) does not exist at the forewarned potential conflicts of interest and time of the agreement and shall only be set share experiences between both companies, up (and may, therefore, be subject to an OPA) since it would permit to implement common if the divisions referred to in the reorganization experiences and existing and future projects in process are created. the area of renewable energy in Chile. This does not preclude, however, the fact that (B) In reference to point 2 of the Letter, in the reference the abovementioned intention of launching that says “as stated in paragraph four of the the tender offer (OPA) should have a binding significant event, namely the” intention of Enersis character for Enersis under the designated (already known as Enersis Americas) (of) presenting terms, as it is reiterated herein. a tender offer (“OPA”) issued by the future company Endesa Americas”, which would include all the” (ii)”in relation to the basis permitting the shares and American Depositary Receipts (“ADRs”) Enersis Board of Directors to claim that to issued by that company not owned by Enersis launch that tender offer (OPA) at the price Americas “ we would hereby ask you to explain the indicated in the significant event (236 pesos/ different issues which we promptly reply to. share) with regard to the shares of the future (i) “If the above-mentioned intention to launch this of Enersis Americas, given that the Board of tender offer has a binding character for Enersis, Directors, when proposing the measure, does explain the reasons or bases of that potential not provide explicit reasons for the benefit of the Americas Endesa contributes to the interest legal obligation”. Enersis shareholders but, to the contrary, refers rather to the possibility of mitigating risks for the The intention of launching the tender offer (OPA) Endesa shareholders “. for Endesa Americas minority shareholders at the minimum indicated price is a legally binding As indicated in the response of Enersis, the OPA, commitment for Enersis, under the terms and apart from being a risk-mitigating factor for Endesa conditions announced to SVS and the market Chile shareholders also involves benefits for Enersis and shareholders in the response of Enersis. shareholders, which can be summarized as follows: In relation to the above, we should remember 1. The announcement of the tender offer is, firstly, that: (i) the announcement corresponds to an an enhancing element of the Reorganization Significant Event of the Entity 267 given that it substantially mitigates the risks that Officer will be instructed to “ negotiate, in good faith, could lead to the frustration of said operation with Endesa Chile the terms of a compensation and, therefore, not permit Enersis and its commitment, whereby and only and exclusively on shareholders to obtain the benefits inherent the assumption that, for reasons not attributable in the reorganization that have been widely to Endesa Americas or Endesa Chile and different declared by the company and that are explained force majeure causes, the merger agreements in the document entitled “Benefits from the are not adopted before December 31, 2017, the Operation” that was made available to the tax costs borne by Endesa Chile as a result of the shareholders and the market. division and duly accredited, discounting those benefits or tax credits that Endesa Americas and 2. The OPA itself represents an acceleration of Endesa Chile obtained as a result of this division, the commitment of the use of funds and would be compensated with tax benefits that may compliance with the commitment made in be obtained by Enersis” we respond below to the the capital increase approved in 2012; that is, various requests for information contained therein. the use of funds provided by members at the time for, among other uses, the “purchase of (i) What is the consideration which Endesa Chile minority shareholders”, as in the case of Endesa would have to observe in this agreement at the Americas corporate shares is completed within time of subscription or if said agreement should a limited period and on terms that are beneficial be legally considered as a free act or depending to the company. of the will of Enersis with Endesa Chile. 3. Furthermore, the tender offer presumes the The terms and precise elements of the use of funds, with a generation of value for compensation agreement which the parties Enersis shareholders, a case that Endesa Chile might potentially negotiate, if the conditions shareholders decided to make use of because that have been pointed out in the response of it shall lead to an immediate increase in the Enersis are complied with, may only be detailed, company’s profits per share; precisely, at the time that such negotiation takes 4. The use of the funds will be efficient in that having place. set the price of the tender offer as a “market” Notwithstanding the above, it is possible to price does not logically include any “premium”, anticipate that, as pointed out by SVS in its since what it intends is for the OPA to be only ordinary Official Letter no. 15.443 dated 20 a technical mechanism of protection of minority July, 2015, the reorganization process should shareholders that would permit ex ante to be considered as a whole, and therefore it define a market price without having to wait cannot be valued - consequently neither can its for the materialization of the divisions and to objectives, or its benefits or risks - considering provide certainty and liquidity for shareholders operations that make it up in its own standing. who want to abandon the Endesa Americas project, as has been requested by Committees In relation to the above, Endesa Chile, when of Directors and shareholders. The above, in the taking part in the reorganization process, opinion of Enersis, offers sufficient foundations is taking on a risk that might mean that the to state that it contributes to the corporate reorganization shall not be fully completed, interest of Enersis (Americas) to launch the and, therefore, some of the expected benefits tender offer at the price that is indicated in the might not be achieved fully or some of the costs significant event. thereof cannot be immediately compensated. Therefore, as noted in the response of Enersis, (C) With regard to point 3 of the Letter in the reference it is legitimate to consider that there is a that says “Number five indicates that the Executive consideration by Endesa Chile in assuming the 268 2015 Annual Report Enersis risks of incurring certain tax costs that, in case of when it is reached, either party may consider it in the merger not being completed due to causes good faith that it is no longer justified to expect that are beyond its control, or that these might said merger to take place, and therefore they delay the compensation, it is all the same within will be entitled to demand the compensation. the realms of logic of any business operation that part of these risks are taken on by who, to Similarly - and again in relation to the quoted a greater extent, benefits from this operation letter - even though it is true that in “five years (even if the merger is not completed). time tax reforms might take place”, it is not less true, that such situation could improve such The reorganization brings clear and immediate expected benefits, calculated wisely by the benefits to Enersis (to which we will refer later company, and also that the existence of said on) from the very first moment (that is, since the “risk of regulation change” (consubstantial to merger is agreed upon) however, in the case of any business activity) could be, on its own, a Endesa Chile, those benefits are fully obtained dissuading element sufficient to not aspiring to if the merger materializes or is compensated, an improvement that is certain today. once the time elapses since there is a certainty that it should fail. There is, therefore, a certain Ultimately, the realignment will permit Enersis acceptance of risk by Endesa Chile, that, from the outset to reach a long-sought objective although steps have been taken to mitigate it and that is the elimination of a superimposition by the various mechanisms described in the on received dividends, something which, response of Enersis, it should be attempted without such reorganization, has not been to compensate them, using the mechanism possible so far. referred to in the question made by SVS. (ii) Within what period such compensation could contribute to the corporate interest of the take place if – as can be seen from the minority company or companies that are set up after the (iii) How will this decision of the Enersis Board vote of Director Mr. Fernández – the tax benefits division. would be received by Enersis in the long-term. In relation to that it states: “the tax costs taken As indicated in the response of Enersis, the on by Endesa are related to the moment of the need to establish a compensation as the one division and the tax benefits that Enersis would indicated above, has been one of the mitigating receive are long-term, that, according to what actions requested by the Committee of Directors is said by IM Trust, more than five years are of Endesa Chile. required to equalize these things and that during these five years it is perfectly feasible to expect In relation to the above, it should be noted that tax reforms in any of the countries in question while this measure – namely establishing a (sic.)” compensation - supposes a favorable element of the operation (under the terms explained The compensation shall take place as of the above), the last shall be the catalyst that will moment in which the fact that the conditions facilitate achieving the reorganization process in established therein cannot be met is evident, in its entirety and, therefore, will permit to obtain all particular, the non-implementation of the merger the benefits already communicated to SVS, the of Endesa Americas and Chilectra Americas into shareholders and the market in the document Enersis Americas. available on the company’s website and entitled “Expected benefits of Reorganization”. As this uncertainty - for the benefit of both parties - cannot stay open indefinitely, a deadline- In addition, as there has been pointed out December 31, 2017 — has been established and before, the reorganization starts to produce Significant Event of the Entity 269 positive effects for Enersis as of the moment the time comes, is deemed economically more of the divisions, even if the merger does not appropriate – having established for that purpose happen. Thus the same division will produce for a solid balance as the one that was presented in Enersis Americas (as well as some of the above the division process. benefits), among others, tax benefits derived from a more rapid use of tax credits. (v) The legal figure that would be used to carry out Under these considerations, and according to this commitment. Enersis, it has a lot of sense from the logical- As was previously indicated in the response of commercial point of view that: If there is a cost Enersis, the tax compensation to be made in the for Endesa Chile, if the process in all its phases future if the circumstances mentioned above is successful, it would be compensated with take place, as would be the case, through the the merger (taking into consideration the swap subscription of a compensation agreement to equation), and if the last - for reasons already be agreed between Enersis and Endesa Chile, known - does not take place, Enersis (a company prior the acceptance, at the right time, of the that since the first phase of the reorganization procedures established in Title XVI of the LSA. starts to profit) undertakes to mitigate the adverse impact that the non-completion of the We remain at your disposal and are happy to provide reorganization might have on Endesa Chile if the any other information deemed relevant to this case. merger should fail. - On December 1, 2015 was informed as significant In short: in view of Enersis, establishing the event that on November 30, 2015, the “Consejo de compensation as (a) risk mitigating mechanism Administración de Bolsas y Mercados Españoles, and therefore, a catalyst of the reorganization Sistemas de Negociación, S.A” (Board of Directors of process and (b) facilitator of the benefits Spanish Stock Exchanges), in exercise of the powers announced in the operation, mainly tax benefits, conferred by “Reglamento del Mercado de Valores reducing inefficiencies, optimization of means Latinoamericanos, Latibex” (Regulation of Latibex), and resources, a more efficient structure and with and in response to the request made by Enersis S.A., an improved visibility and reduction of the holding it has agreed to suspend the inscription of Enersis S.A. company discount, decreases in costs and an effective from December 1, 2015 and has decided to increase of quantified efficiencies, contributes to exclude the trading of shares issued by the Company in the corporate interest of the company. Latibex, effective on December 4, 2015. (iv) Which company would ultimately have to be The above implies that, from the aforementioned date, liable for the compensation and where would Enersis S.A. will be delisted from Latibex and its shares the funds come from to pay such compensation will not be traded in the future on that stock exchange. to Endesa. The company that undertakes to compensate that, as of this date Enersis S.A. has responded to the is Enersis (which, in its case, at the moment of Official Letter No. 26,429 sent by the Superintendence, the compensation will operate under the name which is shown below. - On December 2, 2015 was informed as significant event “Enersis Américas”). Response to the Ordinary Official Letter SVS No. 26,429 The company has an adequate financial structure dated November 27, 2015 (the “Letter”). to provide such compensation that would permit it to reimburse the amounts that potentially To whom it May Concern: might be due either from its own funds or from funding from third parties – whichever, when We hereby come to provide, within the stipulated time 270 2015 Annual Report Enersis limit, our response to the referred Official Letter, related significant events, at the disposal of shareholders to the explanations and clarifications requested by the and the market in general. Both the Secretary of the Superintendence (“SVS”) to the significant event of Enel’s Board of Directors, Mr. Claudia Sartorelli, and November 24, 2015 and the response of Enersis S.A. one of the principal legal firms in the Republic of Italy, (“Enersis”) to the Ordinary Official Letter No. 25,412, Chiomenti Studio Legale, represented by its partner, registered on November 25, 2015 (“the response of the attorney Mr. Michele Carpinelli, have indicated the Enersis”). binding nature of the abovementioned commitments of Enel under the terms that they are written, under The Board of Directors, by the aforementioned majority, Italian Law. has decided to make the two legal opinions referring to the binding nature of the commitments formulated by A copy of the letter sent by the Secretary of Enel Enel S.p.A. (“Enel”), which are mentioned in previous S.p.A. is included below: Significant Event of the Entity 271 In addition, the legal opinion issued by the attorney Mr. Carpinelli, translated to Spanish is included below. In addition, the Board of Directors, by the majority “I. – The SVS is right to delve deeper into the issues previously mentioned, has agreed to disclose that from its Letter No. 26.429 given that the letters the author of the aforementioned commitments is of Enel contains vague topics and are full of Enel S.p.A. and not Enersis S.A., and therefore it exceptions. We cannot observe in them the does not correspond to the Board of Directors of the obligations described in detail and clearly taken on Company to modify or extend the contents of said by the controlling shareholder. commitments. The director Mr. Rafael Fernandez M., in the session order to convert statements of Enel S.p.A into II. – It is my opinion that the way to move forward in above-mentioned of the Board of Directors held today, binding commitments is: expanded on his dissenting vote, stating the following in relation to the Enersis Response to the referenced a) For the commitments to be written minutely in a Letter: way to make them enforceable. 272 2015 Annual Report Enersis b) That Enel S.p.A. appoints a legal representative in dissenting vote related to the SVS Official Letter Chile, domiciled in Chile and duly guaranteeing its No. 25.412 presence in Chile. I believe that it does contribute to the best interest c) That Enel S.p.A guarantees its statements and of Enersis, given that it assumes the generation commitments through, for example, setting up a of value for Enersis shareholders, it offers Endesa guarantee of the shares of Enersis S.A. as “a pledge”. Chile shareholders an option that they previously In relation to the requirements of the SVS Letter No. were provided by the minority shareholders during 26.429, within what has been expressed before in the capital increase. did not have and implies use of proceeds that points I, II and III, I will detail my opinions on each point 3. in relation to the compensation to Endesa Chile for tax costs, I reiterate my position that it is Enel 1. i) in relation to Non-Conventional Renewable S.p.A. that must compensate Endesa Chile. Energies, it is a draft proposal between Endesa Chile and Enel Green Power that must be I maintain my opinions expressed on that matter worked treated as a related-party transaction. in my dissenting vote related to the SVS Official In no way can it limit the autonomy of Endesa Letter No. 25,412. Chile to develop projects and businesses with third parties, in Chile and in South America. Enel S.p.A. must compensate Endesa Chile, in It seems convenient to me that this agreement Endesa Chile incurring the payments of the tax a period that should not exceed sixty days as of is being negotiated and signed before the costs. Extraordinary Shareholders’ Meeting related to the Spin-Off of the companies took place. The agreement of the majority of the Board of Directors that Enersis should compensate Endesa ii) In relation to the commitment of a unique Chile is contrary to the best interest of Enersis. investment vehicle, Enel says that it is maintained, given that it will not use other The compensation to Endesa Chile should be investment vehicles in South America different treated as an related-party transaction, and from Enersis Chile and Américas. But from the therefore, I recommend that the Directors’ wording of the letters, some might argue that Committee of Endesa Chile should issue a it is a new and conditional commitment. pronouncement related to the establishment of conditions in which a detailed agreement must This should be stated clearly that Enel, through be signed between Endesa Chile and Enel S.p.A., Endesa España, assumed this commitment enabling Endesa Chile to make enforceable and with regards to related-party transactions demandable with certainty the commitment during Enersis’ capital increase, without any of compensation, before the Extraordinary conditions. Shareholders’ Meeting of the Spin-Off took place. It is my opinion, Enel S.p.A. must complement - On December 17, 2015 Enersis informed as the its letter in order to correct this issue, before following significant event: the Extraordinary Shareholders’ Meetings of the Spin-Off took place. 1. Today, we received correspondences signed by the shareholders of Pension Fund Managers 2. in relation to the Public Offering of Shares of (“AFP”, in its Spanish acronym) Provida, Cuprum the eventual Endesa Américas, I maintain my and Capital, expressing their intention to support statements, which were expressed, in my the Corporate Reorganization process of Enersis Significant Event of the Entity 273 and its subsidiaries and the subsequent demerger (the “Reorganization”) which consists of (a) the spin- of Enersis and Empresa Nacional de Electricidad off of Enersis and its subsidiaries Empresa Nacional de S.A. (“Endesa Chile”) subject to specific conditions, Electricidad S.A. (“Endesa Chile”) and Chilectra S.A. as described in the attached letters. (“Chilectra”), and (b) the subsequent merger of the companies that own shares in businesses outside of 2. Also, as of today, the Company has received a Chile. Additionally, shareholders were provided with all correspondence from its controlling shareholder, information about use as a basis for the Reorganization Enel S.p.A., also attached, in which it expresses and estimated terms of this possible merger. binding commitments related to the Corporate Reorganization process. Subsequently, the Shareholders’ Meeting, with the respective legal quorum, approved the demerger of 3. In the extraordinary meeting held today, the Board of Enersis into two companies (the “Division”). As a Directors analyzed the correspondence received by result of this Division, the new company, Enersis Chile the Company as described above, and adopted the S.A. (“Enersis Chile”), a new publicly held company, following agreements: which will be governed by Title XII under the D.L. 3500 and which was allocated the shareholdings, and (i) By majority, the Board of Directors amended the tax assets and liabilities associated to Enersis in Chile, compensation agreement adopted at the meeting including shareholdings in each Chilectra and Endesa held on November 24, 2015. Enersis compromises Chile, which would already be demerged. All of to compensate tax costs paid by Endesa Chile, Enersis’ shareholders will participate in Enersis Chile deducting the benefits or tax credits that Endesa in the same proportion that they had in the Enersis’ America S.A. or Endesa Chile should obtain as a result capital, with a number of shares equal of what they of the Corporate Reorganization, provided that the had in the spun-off company (ratio 1:1); remaining in merger does not occur before December 31, 2017. the demerged Enersis the shareholdings that Enersis owns outside Chile, including its shareholdings in the (ii) Unanimously, modifying the proposed price of the companies that are the result of the demergers of future takeover bid (“OPA”, in its Spanish acronym) Chilectra and Endesa Chile, and the liabilities related of Enersis Americas S.A. in relation to Endesa to them, as well as all other assets and liabilities not Americas S.A., in order to increase its price from specifically assigned to Enersis Chile in the Division. Ch$ 236 per share agreed upon by the Board of Directors on November 24, 2015, to Ch$ 285 per The Division is subject to the conditions precedent, share. including the minutes of the Extraordinary Shareholders’ Meeting (“ESM”), in which the spin- (iii) By majority, the Board of Directors raised the offs of Endesa Chile and Chilectra are approved and proposed limit to exercise the withdrawal right of are duly recorded as a public deed and their respective Enersis Americas S.A. that will be presented at excerpts have been registered and published duly and the shareholders’ meeting to be held with regards promptly in accordance with the law. Additionally, it was to the merger, increasing the current 6.73% up approved that the Division will take effect on the first to 10%, to the extent that such an increase in calendar day of the following month after the public the withdrawal right in Enersis America S.A. will deed of fulfilment of the conditions for the Division not lead any shareholder to exceed the maximum is granted, notwithstanding the prompt fulfilment of ownership of 65% of Enersis Americas S.A. after the registration formalities in the Commercial Registry the merger is formalize and publications of the excerpt in the Diario Oficial and recording of the ESM minutes that approved the - On December 18 Enersis informed the significant event Division as a public deed. regarding that the Extraordinary Shareholders’ Meeting held today, shareholders of Enersis were informed about As part of the Division agreement, it was also agreed the Enersis Group’s Corporate Reorganization proposal (i) to decrease the capital of Enersis as a consequence 274 2015 Annual Report Enersis of the Division from Ch$ 5,804,447,986,000, divided into 49,092,772,762 registered shares, of the unique and same series and without par value, to the new amount of Ch$ 3,575,339,011,549 divided into 49,092,772,762 registered shares, of the unique and same series and without par value; (ii) to establish the capital of Enersis Chile, corresponding to the amount by which the capital of Enersis has been decreased, 2014 Significant or Essential Events divided into 49,092,772,762 ordinary registered Pursuant to the provisions of Articles 9 and 10, second shares, all of the same series and without par value; paragraph, of Law No. 18,045 on Securities Market and (iii) to distribute the company’s equity interest and the provisions of General Rule No.30 of that between Enersis and Enersis Chile, allocating assets Superintendence, the following significant events are and liabilities as indicated by the aforementioned reported: meeting, to Enersis Chile . - On January 14th, the Board of Enersis S.A. unanimously Additionally, other amendments to the Enersis by- agreed to submit a voluntary public shares’ acquisition laws were approved as a result of the Division, with tender to shareholders of its subsidiary Companhia regards to: (i) its corporate name, which will change to Energética do Ceará – COELCE (‘Coelce’) – domiciled in Enersis Américas S.A.; and (ii) its corporate objective, the Federative Republic of Brazil. expanding it to include loans to related companies. The by-laws of Enersis Chile were approved, which, consolidates Coelce, through Enel Brasil S.A. which has, as of its effectiveness, shall be subject to, in an as to this date, 58.87% interest in Coelce, corresponding anticipated and voluntary manner, the rules set to 91.66% of ordinary shares and 6.26% of class A Enersis S.A. is already parent company, controls and forth in article 50 Bis of the Chilean Companies Law preferred shares. related to the election of independent directors and the creation of the Directors’ Committee. Pursuant Enersis S.A. (‘Offeror’), assisted by Banco Itaú BBA S.A. to the above, the meeting elected an interim Board (‘Itau BBA’), acting as intermediary, will timely publish the of Directors for Enersis Chile in accordance with prospectus (‘Edital’) of the Voluntary Tender for Shares’ Article 50 bis, appointing Messrs. Pablo Cabrera Acquisition (Oferta Pública de Acciones: ‘OPA’) to acquire G. and Gerardo Jofré M. as independent directors, all the shares of all the series issued by Coelce (ordinary, and Francisco de Borja Acha B., Francesco Starace, preferred Class A and Class B) currently outstanding on Alberto De Paoli, Giulio Fazio and Fernán Gazmuri the market, at a price per share of R$49. This price will be Plaza as non-independent directors, recording the payable at sight, on February 20th, 2014, in Brazil’s legal vote of the controller of Enersis, its members and its currency, according to the rules established in Brazilian related persons. legislation and regulations, this OPA pursuant to Brazil’s Securities Commission (CVM) Instruction No.361/2002. The shareholders appointed Ernst & Young as This price represents a premium of 20.1% over the the external audit company of Enersis Chile; and average price, volume weighted; of class A preferred appointed Mr. Luis Bono S. and Mr. Waldo Santiago shares in the last 30 trading days (until January 13th, G. as the Account Inspectors of Enersis Chile, and 2014, inclusive). Mr. Franklin Ruiz Salinas and Mr. Roberto Lausen K., as Alternates Account Inspectors. In the event that during the execution of this OPA all Coelce’s shareholders were to sell their shares Finally, the meeting agreed that Enersis Americas S.A. to Enersis S.A., this company would have to pay the will continue to be, and Enersis Chile will be subject, approximate amount of $340,212 million, equivalent to Resolution No. 667 of the Honorable Resolution to US$645 million, at an exchange rate of $527.53/ Commission, dated October 30, 2002. US$. Significant Event of the Entity 275 This transaction, being the acquisition of an already Energética do Ceará - COELCE (‘Coelce’), that an auction controlled participation, does not generate effects on had been carried out on said date to acquire the shares Enersis’ Income Statement and will not modify the of all series issued by Coelce, outstanding in the marked values of Coelce’s assets and liabilities recorded in as at that date. Enersis’ consolidated balance sheet at the time of the transaction. The difference between the values During the auction, Enersis did not increase the registered by Coelce and the values disbursed by price offered, estimating that it was appropriate and Enersis’ acquisition will be recorded as Equity (Other convenient for the company’s corporate interests. The Reserves) at the time the transaction is perfected. From result of the auction for each series of Coelce’s shares this moment on the effects of increased participation was as follows: will be shown in the Offeror’s Income Statements. The deadline for acceptance of the OPA will be 33 ordinary shares representing more than two thirds calendar days from the publication of the Edital in of the total outstanding shares of this series, which Brazilian media, to take place on January 16, 2014; the corresponds to 6.17% of total shares of said series and - Ordinary Shares: Enersis acquired 2.964.650 million OPA auction should be at 16:00 hours (Brasilia time) 3.81% of Coelce’s share capital. on February 17, 2014. All other terms and conditions of the OPA will be disclosed in the OPA’s Edital, to be duly - Class A Preferred Shares: since two thirds of the total published. outstanding shares of that series were not exceeded, Enersis acquired one third of the shares of such series, It is also advised that PricewaterhouseCoopers for which the shareholders of this series who took Corporate Finance & Recovery Ltda, Brasil, prepared part in the tender sold their respective holdings to Coelce’s evaluation report (‘Laudo de Avaliação’) that, the Offeror on a pro-rata basis. Thus, Enersis acquired in conjunction with the Edital of Voluntary Tender for 8,818,006 class A preferred shares, corresponding to Acquisition of Outstanding Ordinary Shares, A Preferred approximately 31.21% of the shares of that series and Shares and B Preferred Shares Issued by the Company, 11.33% of Coelce’s share capital. will be available to interested parties as of January 14th, 2014, at the headquarters of Enersis S.A., Coelce, - Class B Preferred Shares: Enersis acquired 424 class Itau BBA, BM&FBOVESPA S.A. – Stock Exchange, B preferred shares representing less than one third Commodities and Futures – and CVM, as well as on of the total outstanding shares of this series, which the following websites: www.enersis.cl; www.coelce. corresponds to 0.03% of the shares of that series and com.br/ri.htm (access ‘OPA Enersis’); http://www. 0.00054% of Coelce’s share capital. itaubba.com.br/portugues/atividades/prospectos-to- iubb.sp, www.cvm.gov.br and www.bmfbovespa.com. As a result of the auction, Enersis acquired, at a value br. Additionally the list of Coelce’s shareholders will of R$ 49, 2,964,650 ordinary shares, 8,818,006 class be available at the head offices of the aforementioned A preferred shares and 424 class B preferred shares, entities. representing a disbursement of $ 132,340 million, equivalent to US$ 242 million, based on an exchange This operation is part of the process of using funds raised rate of $ 546.99/ US$. Payment will be materialised next in the capital increase approved at the Extraordinary February 20th (‘Settlement Date’), in currency of the Shareholders’ Meeting held on December 20, 2012, Federative State of Brazil and in the terms communicated successfully concluded with the signing of 100% of to the market in the essential fact of January 14. the shares available in March 2013, grossing nearly US$ 2,400million in cash. In this way and in the context of the use of funds raised in the capital increase approved during 2012, Enersis - On February 17th, 2014, it was informed as a significant has increased its shareholding in its subsidiary Coelce in event in the framework of the OPA aimed at shareholders 15.13%, which means that currently it owns, directly and of Enersis S.A. (‘Offeror’)’s subsidiary, Companhia indirectly, 74% of the shares in the company, distributed 276 2015 Annual Report Enersis as follows: 47,026,083 ordinary shares, 10,588,006 class The effects of that investment on results are not A preferred shares and 424 class B preferred shares. quantifiable at this date. Having exceeded two thirds of the total outstanding - On April 1st, 2014, it was reported as an significant event shares in the series of Coelce’s ordinary shares, regarding that, on March 31, the Board of our subsidiary Enersis will extend the validity of the offer for that Empresa Nacional de Electricidad S.A. (hereinafter series for three additional months as of February 17, ‘Endesa Chile’) agreed to accept the offer from Southern 2014, according to applicable law, so that shareholders Cross Latin American Private Equity Fund III, L.P. who have not yet taken part in the offer, may sell (hereinafter ‘Southern Cross’) concerning the direct their shares within that period at a final acquisition sale of all social rights Endesa Chile has in Inversiones price of R$ 49, adjusted by Special Clearance and GasAtacama Holding Limitada (equivalent to 50% of the Escrow System (SELIC) rate calculated pro-rata from company) and the assignment of the credit Sub Pacific the Settlement Date until the date of cash payment, Energy Co. currently owns against Atacama Finance Co., in terms of CVM Instruction 361/02. The term for the documented in the promissory note dated January 16, offeror to pay shareholders, who take part during this 2013, for a sum that currently amounts to US$ 28,330,155. period to sell their shares, will be 15 calendar days This, according to the Conciliation Settlement, signed from the date in which that power is exercised by the on June 18, 2013 by Southern Cross and Endesa Chile, respective shareholders. Any shareholders who have within the arbitration framework with Southern Cross. ordinary shares of Coelce, wishing to sell their shares in the referred terms, should send a communication The total sale price for said assets, including the to Regina Alcãntar, referring to the OPA by Enersis, aforementioned assignment of credit, amounts to US$ addressed to: calle Padre Veldevino, n°150, 60,135-040, 309 million. The parties will have up to thirty calendar Fortaleza, CE. In this communication, the shareholder days, starting today (April 1st, 2014), for the subscription should indicate the number of shares intended to be of documents and contracts for the closure of the sold. The procedure for sale of Coelce’s ordinary shares operation. in the referred terms will be detailed on Enersis’ website www.enersis.cl and on Coelce’s website www.coelce. As a consequence of this transaction, the shareholders’ com.br/ri.htm, in ‘OPA Enersis’ link. agreement between Southern Cross and Endesa Chile, dated August 1st, 2007, becomes extinct and the following The acquisition of Coelce’s shares does not generate companies join our group as subsidiaries: Inversiones Gas effects on Enersis’ Comprehensive Income Statement Atacama Holding Ltda; Gas Atacama S.A.; Gas Atacama since it is the acquisition of already controlled shares Chile S.A.; Gadosucto Tal Tal S.A.; Progas S.A. Gasoducto and it does not modify the values of Coelce’s assets Atacama Argentina S.A.; Gasoducto Atacama Argentina and liabilities recorded in Enersis’ consolidated balance S.A. (Argentina Branch); Atacama Finance Co.; GNL Norte sheet. The effects of this increased shareholding by S.A. and Energex Co. Enersis will begin to be shown in the parent company’s Income Statement as of this moment. At year 2013 closing, GasAtacama obtained EBITDA of US$ 114 million and net profits of US$ 69 million. - On April 1st, 2014, it was reported as an essential fact In addition, the company has a cash position, cash that: our subsidiary Empresa Nacional de Electricidad equivalents and realisable financial assets amounting S.A. has signed contracts for the construction of 150 to US$ 222 million. The company maintains financial MW Los Cóndores Hydroelectric Project, located in debt with its partners amounting to US$ 56,6 million. Region VII. This hydroelectric plant, in which US$ 661.5 Since the signing of the acquisition, Enersis, through its million will be invested, will use the waters of Lake Del subsidiary Endesa Chile, will gain control of Inversiones Maule’s reservoir and is expected to enter commercial GasAtacama Holding Limitada and its subsidiaries, so operation in late 2018. Yesterday (March 30, 2014), it will integrally consolidate 100% of its stake, ceasing Consorcio Ferrovial Agroman was awarded the civil to register it at 50% proportional equity value as a joint works’ contract for said project. venture investment. Significant Event of the Entity 277 - On April 23, 2014, it was reported as an essential fact that, the Shareholders’ Extraordinary Meeting held on in the Ordinary Shareholders’ Meeting held on April 23, December 20, 2012, and successfully concluded with 2014, it was agreed to distribute a mandatory minimum the subscription of 100% of the shares available on dividend (partially composed of Interim Dividend No. 88, March 2013, grossing nearly US$ 2,400 million in of $ 1.42964 per share), and an additional dividend, which cash. amounted to a total of $ 329,257,075,000, equivalent to $ 6.70683 per share. - On May 19, 2014, it was informed as an essential fact that: Considering said Interim Dividend No. 88 has already 1.- At close of trading on Friday, May 16 ended the 90 been paid, the Company distributed and paid the days period to buy remaining ordinary shares on remainder of the Definitive Dividend No. 89 for $ the occasion of the Voluntary Tender for Shares’ 259,071,983,050, equivalent to $ 5.27719 per share. Acquisition (‘OPA’) made by Enersis S.A. (Enersis) On April 30, 2014 it was informed as an essential fact that: Companhia Energética do Ceará – COELCE (‘Coelce’) 1.- On April 30, 2014, as resolved by the Board of Enersis having been achieved over two thirds acceptance of S.A. in its meeting held on April 29, 2014, Enersis the shares of the ordinary series at closure of the – the auction of which took place on February 17, 2014, for the shares issued by its Brazilian subsidiary S.A. signed the agreement for the acquisition of all regular subscription period. the shares Inkia Americas Holdings Limited indirectly owns of Generandes Perú S.A. (equivalent to 39.01% 2.- Once said 90 days period ended, Enersis acquired of said company), parent company of Edegel S.A.A. 38,162 additional ordinary shares equivalent to The referred agreement contemplates a price of 0.049% of Coelce’s capital, at a weighted average US$ 413 million payable once shares are transferred, value of R$ 49.20, for which an additional investment which will occur once certain suspension conditions of R$ 1,877,427 was made. therein defined are verified. 3.- In this way and as a final result of the OPA, in its 2.- Whereas Enersis S.A. already controls and therefore regular and additional acquisition periods above consolidates Generandes Perú S.A and Edegel indicated, Enersis acquired 3,002,812 ordinary shares S.A.A., this operation does not generate effects at a weighted average value of R$ 49.00, 8,818,006 in Enersis’ Comprehensive Income Statements Class A preferred shares, at a value of R$ 49.00, and and does not modify the values of assets and 424 Class B preferred shares at a value of R$ 49.00, liabilities of said subsidiaries, recorded in Enersis representing a disbursement of $ 132,803 million, S.A.’s Consolidated Balance Sheet. The effects of equivalent to US$ 243 million. Consequently, the final this increased shareholding by Enersis S.A. will be direct and indirect shareholding of Enersis S.A. in its shown in the Income Statements of parent company subsidiary Coelce is 74.05%. as of the time the referred suspension conditions are verified. The acquisition of shares issued by Coelce does not generate effects in the Comprehensive Income 3.- As a consequence of said agreement and once the Statements of Enersis S.A., since it is a purchase of suspension conditions of the transaction are verified, a stake in an already controlled subsidiary, nor does Enersis S.A. will become parent company and will it modify the values of Coelce’s assets and liabilities consolidate the following companies: Inkia Holdings already recorded in the consolidated balance sheet of (Acter) Limited; Southern Cone Power Ltd; Latin Enersis S.A. The effects of this increased shareholding America Holding I Ltd; Latin America Holding II Ltd. of Enersis have been shown in the Income Statements and Southern Cone Power Perú S.A.A. of the parent company as the corresponding shares’ 4.- This operation is part of the process of using the funds raised in the capital increase approved at - On July 31, 2014, the following was reported as an acquisitions have been performed. 278 2015 Annual Report Enersis essential fact: copy of significant fact published on funds raised in the capital increase approved at that date by Endesa S.A., domiciled in Spain, parent the Extraordinary Shareholders’ Meeting held on of Enersis S.A., which informs about the proposed December 20, 2012, and successfully concluded corporate reorganization received from Enel S.P.A.- with the subscription of 100% of the shares available in March 2013, grossing nearly US$ 2,400 million in - On September 3, 2014, the following was reported as a cash. significant event: 1.- That, as reported by this Company through Essential an significant event: copy of significant fact published Fact dated April 30, 2014, Enersis S.A. signed an on that date by Endesa S.A., parent company of Enersis - On September 11, 2014, the following was reported as agreement to acquire all the shares Inkia Americas S.A., domiciled in Spain. Holdings Limited indirectly owns in Generandes Perú S.A. (‘Generandes’) (equivalent to 39.01% of - On September 17, 2014, the following was reported as the company), which in turn controls the Peruvian an essential fact: copy of significant fact published on electricity generation company Edegel S.A.A., the same day by Endesa S.A., domiciled in Spain, parent (‘Edegel’). The referred sale was agreed at a price of company of Enersis S.A. Such significant fact has two US$ 413 million, which would be payable once the reports attached issued by Bank of America Merrill Lynch shares were transferred, which would happen once and Deutsche Bank, which are also included in Enersis’ certain suspension conditions provided for in the essential fact. contract were verified. - On September 19, 2014, the following was reported as 2.- That, once the suspension conditions provided an essential fact: copy of significant fact from Endesa for in the referred agreement were fulfilled, on S.A., domiciled in Spain, parent company of Enersis September 3, Enersis S.A.’s acquisition at the agreed S.A., which informs of the Call to Extraordinary General price was made, with the corresponding transfer, Shareholders’ Meeting already announced in significant of all Generandes’ shares of which Inkia Americas fact released on September 17 this year. Holdings Limited was indirectly holder, equivalent to 39.01% of the shares issued by that company. - On October 2, 2014, the Directors’ Committee and Generandes, in turn, owns 54.20% of the shares the Board of Enersis have received two independent issued by Edegel. evaluators’ reports by IM Trust S.A. Asesorías Financieras S.A. and Itaú BBA of Banco Itaú Chile, respectively, 3.- Whereas Enersis S.A. already controls and therefore copies of which are attached to this communication and, consolidates Generandes and Edegel, this operation in accordance with Article 147 of Law 18,046, will be does not change the values of the assets and liabilities made available to shareholders at the corporate offices of said subsidiaries recorded in the Consolidated of Enersis S.A. located in Santa Rosa 76, Santiago and Balance Sheet of Enersis S.A. The effects of this on the company website www.enersis.cl, as of this increased shareholding by Enersis S.A. will be date. shown in the Income Statements of parent company as of this date. The aforementioned reports were requested by said corporate bodies of the Company, during the study 4.- As a result of this transaction, Enersis S.A. will of a potential transaction between related parties, become parent company and will consolidate the hereinafter, the Operation. following companies: Inkia Holdings (Acter) Limited; Southern Cone Power Ltd.; Latin America Holding The Operation aims to integrally refund the capital of I Ltd.; Latin America Holding II Ltd. and Southern Inversora Dock Sud S.A. (‘IDS’) and Central Dock Sud Cone Power Peru S.A.A. S.A. (‘CDS’), Argentinian subsidiaries of Enersis S.A. which carry forward accumulated losses; so it has been 5.- This operation is part of the process of using the considered as a viable and efficient solution, to increase Significant Event of the Entity 279 the capital in said societies, in which various creditors against Central Dock Sud S.A. (CDS) and the subsequent waive interests and contribute the credits they have waive of interests and contribution of these credits to against CDS. Enersis has no credits receivable from the equity of Inversora Dock Sud S.A. (IDS) and that IDS or CDS, but Endesa Latinoamérica S.A. (ELA), its of CDS, at face value and on equal terms by creditors parent company domiciled in Spain, does have such and shareholders of CDS, receiving in exchange shares receivables. ELA, from which Enersis would buy the issued by IDS and CDS, respectively, in proportion to credits, is neither IDS’s nor CDS’s shareholder. The the contribution of credits made, and in the case of operation consists of the following acts and contracts: a) Enersis, partially amortised in cash, as well as any capital Purchase by Enersis S.A. of credits owned by its parent reductions of such Argentine subsidiaries. Copy of said ELA against CDS. The receivables to be sold are those report was made available to shareholders at Enersis’ in the aforementioned reports, b) Acceptance of the corporate offices located in Santa Rosa 76, floor 15, Offer received on September 19th from Pan American Santiago de Chile and on the company’s website www. Energy LLC, Pan American Energy Holdings Ltd and enersis.cl. Pan American Sur S.A. in their capacity as shareholders of Central Dock Sud S.A., in order to agree on the - On October 8 the following significant event was capitalisation of said company. Said offer states that part reported: of the credits acquired by Enersis will be partially repaid in cash by CDS, c) Enersis’ waiver of interests associated I. The seven directors of Enersis S.A., within the with the acquired credits and capitalisation in IDS and statutory period provided for in Article 147 paragraph CDS of the remnant of them. The remaining shareholders 5) of the Corporations Law, gave their respective will carry out similar waivers and capitalisations with the individual opinions on the Dock Sud Operation, credits they own, d) Eventual reduction of capital in IDS which has been reported by essential facts dated and CDS. October 2 and 6, 2014. These individual statements allow compliance with the provisions in Title XVI of Besides restoring CDS’s equity, the Operation aims to the Corporations Law (LSA). maintain the current holdings of shareholders in that company: Enersis (40%), YPF (40%) and Pan American II. On the same date, the Board of Enersis agreed Energy (20%). to approve the purchase of credits to Endesa Latinoamérica S.A. against Central Dock Sud S.A. and In the coming days and within the time limits established the waiver of interests and other related concepts, in paragraph 5) of Article 147 on Corporations Law, the the subsequent partial capitalisation of the principal Directors’ Committee will issue the report required by of the debts and any capital reductions, as described Article 50 bis and directors shall individually decide on in independent reports issued by evaluators Itaú BBA the advisability of the Operation for corporate interest. of Banco Itaú Chile and IM Trust, and note that the If deemed convenient, the Board of the Company will Directors’ individual opinions are that the maximum convene an Extraordinary Shareholders’ Meeting to the values under which this Purchase Operation complies approval of which the Operation will be submitted. with the corporate interest range between US$ 23.8 The effects of the Operation on Enersis S.A.’s results are be determined by the Extraordinary Shareholders’ million and US$ 33.8 million, which will ultimately not quantifiable at this date. Meeting. The Board expressly stated that, with said previous approval, the provisions in Article 14 bis of - On October 6, 2014 it was reported as a significant the by-laws of the Company are met and, in no case, event that the Directors’ Committee of Enersis S.A., could this be estimated to be a decision under the at its extraordinary meeting held on October 6, issued terms of Title XVI of LSA. its report, in accordance with Article 50a on the Corporations Law. Said report refers to the analysis of A copy of said individual statements and the the operation consisting of the purchase by Enersis S.A. collective statement of the Board have been made to Endesa Latinoamérica S.A. of the credits the latter has available to shareholders at the corporate offices of 280 2015 Annual Report Enersis Enersis S.A. located in Santa Rosa 76, Santiago and amortisations and extensions, with the on the company’s website www.enersis.cl, as of this result, as at December 31, 2013, of a date. consolidated debt including contractually established accrued penalty interests III. The Board of the Company agreed to convene an and commissions that amounted to Extraordinary Shareholders’ Meeting of Enersis S.A. US$ 147,877,451 (capital: US$ 90,704 to be held on Tuesday, November 25, 2014, at noon 696 and interest and commissions: US$ in the Auditorium of Enersis S.A.’s Corporate Building 57,172,755). located in Santa Rosa 76, Santiago Commune, so that shareholders acknowledge and decide on the ii) Loan granted on November 8, 2007 following matters: for a total of US$ 34 million, with 40% share by Endesa Internacional S.A. (now 1.- Approve, under the terms of Title XVI of LSA, the Endesa Latinoamérica S.A.), 40% by operation with related parties consisting of the YPF International S.A. and 20% by Pan following acts and contracts: American Energy LLC (later assigned to Pan American Sur S.A), maturing in a) Purchase by Enersis S.A. of credits owned September 2013 (‘Shareholders’ Loan’). by its parent company Endesa Latinoamérica The Shareholders’ Loan was extended to S.A. against Central Dock Sud S.A. (CDS). September 2014. The outstanding balance The credits to be purchased are as identified on this loan amounted to US$ 45,520,806 below; the information related to them is as at December 31st, 2013 (principal: US$ available to shareholders at the registered 34 million and interests: US$ 11,520,806). Company domicile and on the Company’s website www.enersis.cl: b) That Enersis S.A., as creditor, agrees with its subsidiary CDS the transformation to pesos i) Credit granted on April 16, 1999 for a total of loans identified in the previous letter. of US$ 258 million with a 57% share of Endesa Internacional S.A. (now Endesa c) That Enersis S.A. contributes to its subsidiary Latinoamérica S.A.) and 43% of Repsol Inversora Dock Sud Argentina S.A. (IDS) International Finance B.V., (assigned to 99.14% of the credit owed by CDS under YPF International S.A.) to cover part of the the Syndicated Loan, percentage amounting costs of the project for the construction of to US$ 51,384,667 equivalent to AR$ the combined cycle plant, with a maximum 335,079,412 and contributes to CDS the payment term of 13 years (‘Syndicated remaining 0.86% of the credit owed by Loan’). In order to ensure compliance CDS under the Syndicated Loan, figure that with the obligations of the funding, CDS amounts to US$ 445,538, equivalent to AR$ set a series of guarantees in favour of 2,905,355. Previously, Enersis shall waive creditors of the same, including mortgage 100% of CDS´s financial, compensatory on the land on which the power plant is and punitive accrued interests associated built, registered pledge on the equipment with this loan, as well as the Equalizing and and property that make up the plant, Counter Guarantees Commissions, together amongst others. In addition, shareholders with all financial, punitive and compensatory Inversora Dock Sud S.A., YPF S.A. and interests accrued and associated with Pan American Energy Holdings Ltd, these commissions, corresponding to the pledged their shares of CDS, to guarantee Syndicated Loan. compliance with the obligations arising from this funding. As to this date, the d) That Enersis contributes to IDS 0.68% of the Syndicated Loan has undergone several credit owed by CDS under the Shareholders’ Significant Event of the Entity 281 Loan, amounting to US$ 92,234 equivalent that extraordinary Board meetings shall to AR$ 601,458 after waiver of 100% of be held when called by the President or at financial, compensatory and penalty interests the request of one or more Directors, after accrued for the Shareholders’ Loan. qualification made by the President of the need for the meeting, unless it is requested e) Propose in relevant corporate bodies of its by an absolute majority of the directors, subsidiaries CDS and IDS the calling and in which case it shall necessarily be held, holding of the extraordinary shareholders’ without previous qualification. meetings needed to approve the capital increases that may be required to give (3) Amendment to article 22, in order to add that effect to the acts and contracts referred to in the newspaper through which Meetings shall subparagraphs b), c) and d) above. be convened will be one located at the city of the Company’s domicile. f) Those other aspects of the described operation that the shareholders’ meeting (4) Amendment to article 26 specifying that the deems necessary to approve which are preceding article referred to is article 25. functional or accessory to the operation and acts described in preceding subparagraphs. (5) Amendment to article 37, in order to update it under the terms of the Corporations Law, its 2.- Reform the Company by-laws, modifying the Regulation and complementary regulations. following articles: (6) Amendment to article 42, adding that as a (1) Amendment to articles Five permanent and requirement to be met by the arbitrator who Two transitory of the by-laws in order to shall resolve disagreements arising amongst comply with Article 26 of the Corporations shareholders, between the latter and the Law and Circular No.1370 dated January 30, Company or its managers, said arbitrator shall 1998 issued by the Securities and Insurance have taught for at least three consecutive superintendence (SVS), as amended by years as professor of Economic or Business Circular No.1736 dated January 15, 2005, Law in the Law schools of University of to recognise changes in equity as a result Chile, Catholic University of Chile or Catholic of recent capital increases in the Company. University of Valparaíso. Consequently, it is necessary to modify capital, increasing it in the amount of $ (7) Issuance of a unified text of the by-laws. 135,167,261,000 corresponding to the balance of the account (‘Emission Premium’, after 3.- Adopt all necessary, conducive and convenient discounting the amount corresponding to the agreements for the perfection and materialisation account ‘Cost of Issuance and Placement of of the respective decisions of the Shareholders’ Shares’, included in Other Reserves, without Meeting, including but not limited to setting the any distribution to shareholders as dividends. terms of the sale of credits between Enersis The capital of the Company, after the indicated S.A. and Endesa Latinoamérica S.A., and the increase, would be $ 5,804,447,986,000, registration of the corresponding transfer; give divided into the same number of shares into the Board wide powers to adopt any agreement which the share capital is currently divided, required to complete or comply with resolutions that is 49,092,772,762 ordinary, nominative of the Shareholders’ Meeting or to satisfy any shares, of one and the same series and with legal, regulatory or administrative requirement or no par value. request of the SVS, the Securities and Exchange Commission of the United States of America, the (2) Amendment to article 15, in order to add Internal Revenue Service or the Central Bank of 282 2015 Annual Report Enersis the Republic of Chile or Argentina, or any public fact reports on the approval of a new special dividend for authority of those countries, or in general, any shareholders of Endesa S.A. and a new dividend policy other competent public authority, authorising for the period 2014 - 2016. to the effect the Chief Executive Officer, the Attorney General, the Deputy Chief Executive - On October 16, 2014, the following was attached as Officer and the General Counsel of the Company, an essential fact: copy of significant fact published by acting any of them individually to make all efforts, Endesa S.A., domiciled in Spain, parent of Enersis S.A., actions and legal acts that may be necessary which relates to the essential facts previously published or appropriate to carry out the above and to on September 11, September 17 and October 8, 2014. materialise the statutory amendments listed The published essential fact reports on pro-forma above. consolidated financial information for the six months period ended June 30, 2014, together with the Special 4.- Information about agreements relating to Report produced by Ernst & Young, which was approved operations with related parties governed by by the Board of Directors of Endesa S.A. in meeting held Title XVI of the Corporations Law, adopted after on October 16, 2014 the last regular meeting of shareholders and other Board agreements that require mandatory - On October 21, 2014, attached as an essential fact, information. were copies of significant fact published by Endesa S.A., domiciled in Spain, parent of Enersis S.A., which relates All above mentioned proposals do not deprive to the essential facts published previously on September the Shareholders’ Meeting of its full competence 11, September 17, October 8 and October 21, 2014. to, where appropriate, accept, reject or modify The published significant fact reports on agreements them or to agree on something different. of the Extraordinary General Shareholders’ Meeting of Endesa S.A., held on October 21, 2014, which approved, Shareholders will be able to obtain a full copy of amongst others, the sale to Enel Energy Europe, S.R.L., the documents that explain and justify the matters of 20.3% of the shares of Enersis S.A. which are directly subject to acknowledgement and resolution of the owned by Endesa S.A. and 100% of the shares of Shareholders’ Meeting at the registered domicile Endesa Latinoamérica S.A. (which owns a 40.32% stake of the Company, located in Santa Rosa 76, Floor in Enersis S.A.) totalling 8,252.9 million euros. 15 (Investment and Risk Management), Santiago, Chile, with at least fifteen days prior to the holding - On October 23, 2014, the following was reported as an of this meeting. Likewise, those will be made essential fact: in relation to the essential facts previously available, in said opportunity, to shareholders published on September 11, September 17, October 8 and on the Company website. Documents already October 21, 2014, that on October 23, 2014, Endesa S.A. available to shareholders at the listed locations, sold to Enel Energy Europe S.R.L. 9,967,630,058 shares, in relation to Dock Sud Operation, are copies of equivalent to 20.3% of the share capital of Enersis S.A., the reports issued by the independent evaluators which were directly owned by Endesa S.A. and 100% IM Trust S.A. Asesorías Financieras and Itaú BBA of the shares of Endesa Latinoamérica S.A. (which in of Banco Itaú Chile; the report of the Directors’ turn owns 19,794,583,473 shares representing 40.32% Committee; the individual statements of each of the share capital of Enersis S.A.). Said transfer was of the Directors of Enersis S.A. and the Board’s recorded on same date in the Shareholders’ Register of collective statement. Enersis S.A. - On October 8, 2014, the following was informed as a Endesa S.A. is 92.063% controlled by Enel Energy significant event: copy of significant event published on Europe S.RL. As a result of the reported operation, that date by Endesa S.A., domiciled in Spain, parent of Endesa Latinoamérica S.A. becomes 100% controlled Enersis S.A., related to the essential facts previously by Enel Energy Europe S.R.L. For its part, Enel Energy published on September 11 and 17, 2014. The significant Europe S.R.L. is 100% controlled by parent company Significant Event of the Entity 283 Enel SpA, an Italian company listed on the Milan Stock resign from his position and membership of the Board. Exchange. In an upcoming Board meeting, the Chairman will be appointed; in the meantime, and in accordance with Accordingly, and pursuant to the share transfers the provisions of Enersis S.A.’s by-laws, the current previously mentioned, Enel S.p.A. remains the ultimate Vice Chairman, Mr. Borja Prado Eulate, shall act as controller of Enersis S.A., and hereinafter, such control President. will be exercised through Enel Energy Europe S.R.L., replacing Endesa S.A., with 20.3% of the shares issued The Board thanked the services provided by Mr. Pablo by Enersis S.A. and through Endesa Latinoamérica Yrarrázaval who, for more than twelve years, served S.A., with 40.32% of the shares issued by Enersis as Chairman of Enersis S.A. and during this time S.A. An explanatory control structure on Enersis S.A. expressed continued support to the Company team. is attached. - On October 28, 2014 the following was reported as - On October 27, 2014, it was reported as an significant significant event: event that our Argentinian subsidiary Endesa Costanera S.A. (in which Enersis has 45.39% indirect economic On September 29, 2014, Law No. 20,780 was published interest) agreed, on said date, with Mitsubishi in the Official Gazette (Diario Oficial), which makes Corporation, refinancing the debt it has with that changes to the system of income tax and other taxes. company, in conditions that are beneficial for said The Law provides for the replacement of the current subsidiary, which contributes to the restructuring of its system, as of 2017, by two alternative tax systems: the equity situation. attributed income system and the partially integrated system. Along with this it sets, beginning in 2014, a Among the main restructuring conditions are: waiver gradual rate rise for the First Category tax (Companies of accumulated accrued interests as at September 30, Income Tax), which will reach 27%, in the event the 2014 amounting to US$ 66,061,897.09; rescheduling partially integrated system is opted for. maturities of capital of US$ 120,605,058.33 for an 18 years term, with a 12 months grace period, with total If the selected option is attributed rent, the maximum due payment before December 12, 2032; minimum income tax rate will reach 25%. The law states annual payment of US$ 3 million of principal in quarterly corporations will default to the partially integrated installments; and an interest rate of 0.25% per year; system, unless a future shareholders’ meeting agrees keeping the pledge of assets and setting restrictions to opt for the attributed rent system. on the payment of dividends. Precedent condition for the effectiveness of the agreement is that Endesa On October 17, 2014, the SVS issued Circular No.856, Costanera S.A. makes a payment of US$ 5 million of whereby it was stated that notwithstanding the debt due within the next 15 business days. provisions of the International Accounting Standards, differences in assets and liabilities for deferred taxes The estimated financial effects, as a consequence of that occur as a direct effect of the increase in the tax the restructuring of this Endesa Costanera’s liability rate introduced by Law 20,780 should be accounted for on the results of Enersis S.A. as dominant company, in the respective year, against equity. correspond to a gain of approximately US$ 62 million ($ 36,000 million) and a reduction of financial debt in Enersis S.A. has made an estimate of the impact on the consolidated financial statements of approximately its Financial Statements arising from the application of US$ 138 million ($ 80,000 million). this law, assuming the implementation of the partially integrated system, which operates by default. - On October 28, 2014 it was reported as an essential fact that, at the Board meeting held on October 28, For local effects, and considering the publication 2014, the Chairman of the Board and President of the of Circular No. 856 cited above, the differences in Company, Mr. Pablo Yrarrázaval Valdés, has decided to estimated assets and liabilities for deferred taxes 284 2015 Annual Report Enersis that occur as a direct effect of the increase in the first Directors’ Committee: category tax rate result in a net charge to equity of $ Hernán Somerville Senn Chairman 62,000 million (US$ 103 million), decreasing the assets and Financial Expert of the parent company in $39,500million (approximately Carolina Schmidt Zaldívar US$ 66 million). These effects have been included in Rafael Fernández Morandé the Financial Statements as at September 30, current year. Also, on November 4, 2014 the Board received the resignation of Chief Executive Officer Mr. Ignacio For international purposes, Enersis S.A., listed on the Antoñanzas Alvear and appointed Mr. Luigi Ferraris as NYSE and the Latibex, will publish its annual Financial Chief Executive Officer of Enersis S.A., all effective as of Statements prepared in accordance with International next November 12, 2014. Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). The The Board expressed its thanks to Mr. Ignacio impact of the new Law No. 20,780 in its Financial Antoñanzas Alvear for the successful work done while Statements as at December 2014 will result in a net in charge of Enersis S.A., which allowed the Company charge to income tax and, therefore, a decline in profits to achieve the solid financial leadership position it now of parent company. holds, placing it as one of the leading corporations in Chile and Latin America and making it the platform of - On November 4, 2014 it was reported as significant growth of Enel Group. event that, at the Board meeting held on said date, the Board of Directors has appointed Mr. Jorge - On November 25, 2014, it was reported as significant Rosenblut as Chairman of the Board and president event, in relation to the essential facts dated October 2, 6 of the Company, replacing Mr. Pablo Yrarrázaval, who and 8, 2014 that the Extraordinary Shareholders’ Meeting resigned last October 28. of Enersis S.A. approved the operation consisting of the purchase by Enersis S.A. of credits owned by Endesa Likewise, the Board of Directors acknowledged that Latinoamérica S.A. against Central Dock Sud S.A. (CDS) on October 30 Mr. Leonidas Vial Echeverría resigned to for US$ 29 million and the subsequent transformation the position of Director and member of the Directors’ to pesos, the waiver of interests and contribution of the Committee. Today the Board of Directors of Enersis remnant of those credits by Enersis S.A. to the capital appointed Mrs. Carolina Schmidt Zalvívar in his of Inversora Dock Sud (IDS) and subsequently, to the replacement, who took the position of Independent capital of CDS, at face value and on similar terms by the Director and member of the Directors’ Committee. remaining shareholders, receiving in exchange shares In the same Board’s session held today, the Director issued by IDS and CDS, respectively, in proportion to the Mr. Luigi Ferraris resign with immediate effect to his contribution of credits made, and in the case of Enersis, position of Director of Enersis, and the Board appointed partially amortised in cash, as well as any reduction of Mr. Alberto de Paoli in his replacement. capital in such Argentinean subsidiaries, all of which is an operation with related parties (the ‘Operation’). Consequently, the Board of the Company and the Directors’ Committee are comprised as follows: The Operation, besides restoring the equity of Board of Directors: subsidiary CDS, allows maintaining the approximate current shareholdings in that company: Enersis (40%), Jorge Rosenblut Chairman YPF (40%) and Pan American Energy (20%). Borja Prado Eulate Vice Chairman Andrea Brentan Alberto de Paoli Hernán Somerville Senn Carolina Schmidt Zaldívar Rafael Fernández Morandé Soon ahead and within the deadlines agreed with the other CDS’s shareholders, the necessary steps will be taken to materialise the Operation. During the first days of December it will be possible to report the financial effects of the Operation on the Company. Significant Event of the Entity 285 - On November 25, 2014, it was reported as significant million at the exchange rate on December 30), amount event that, at its meeting on that day, the Board of paid in cash on this same date. Enersis S.A. unanimously agreed to distribute, on January 30, 2015, an interim dividend of $ 0.83148 per The estimated effects on Enersis, as parent company, share, with a charge to net results for the year 2014, correspond to a gain of approximately $ 18,666,045,000 corresponding to 15% of net income calculated as at legal currency (equivalent to approximately US$ 31 September 9, 2014, in accordance with the current million at the exchange rate on December 30). dividend policy of the Company on the matter. Also, according to the provisions of SVS Circular No.660/ 86, Form No. 1 was sent, which provides the information about the agreed interim dividend, the distribution and payment of which has been agreed by the Board of Enersis S.A at its meeting held on November 25, 2014. - On November 25, 2014, it was reported as significant event than in the meeting on this date the Board of Directors of the Company approved a merger by absorption of its subsidiary Inmobiliaria Manso de Velasco Limitada (IMV) and its subsidiary ICT Servicios Informáticos Limitada (ICT) so that the former is extinguished, the latter surviving. ICT will be successor to all rights and obligations of IMV, incorporating the acquired company’s equity into its own. IMV is a 99.99997% subsidiary of Enersis S.A., with the remaining minority interest of 0.00003% owned by ICT (absorbing company in the operation). For its part, ICT is a 99% subsidiary of Enersis S.A., the remaining minority interest of 1% owned by Chilectra S.A., also a subsidiary of Enersis S.A. Whereas Enersis S.A.is already parent company, controls and consolidates both companies, this operation does not change the values of the assets and liabilities of the acquiring company in the Consolidated Financial Statements of Enersis. - On December 30, 2014, it was reported as an essential fact that on that date IMV, a subsidiary of Enersis S.A., signed a sales agreement with Rentas Inmobiliaria GN S.A. to sell all the shares the subsidiary owns, directly and indirectly, of companies Construcciones y Proyectos Los Maitenes S.A. and Aguas Santiago Poniente S.A., that make up ENEA real estate project. The sale price of said shares was $ 57,173,143,000, legal currency (equivalent to approximately US$ 94 286 2015 Annual Report Enersis Significant Event of the Entity 287 Identification of the Subsidiaries and Associates Companies  Identification of the Subsidiaries and Associates Companies 289 290 2015 Annual Report Enersis AGRÍCOLA DE CAMEROS Company name Sociedad Agrícola de Cameros Limitada Type of society Limited Liability Company TAX ID 77,047,280-6 Address Camino Polpaico a Til-Til, S/N Til-Til, Chile Phone (56 2) 2378 4700 Subscribed and paid-in capital (Th$) 5,738,046 Company purpose The purpose of the company is the explotation of agricultural land. Core businesses Real estate and agriculture. Administration By-laws include a Board of Directors: Regular Directors Andrés Jaime Salas Estrades Francisco Silva Bafalluy Hugo Ayala Espinoza María Cristina Auad Faccuse Cristián Guadi Imbarack Dagach Alternate Directors Solange Zincke Cavalieri Ingrid Morales Ávila Hans Knoop Frick Jorge Geldres Reyes Andrés Garib Auad Senior Executives Hugo Ayala Espinoza Executive Officer Business relations Services Contract by Enersis: Provision of Internal Audit and Compliance Control Services, Price: amounts expressed in per working hour that Enersis’ staff assign to the contracted services. Enersis stake (Direct and indirect) 57.50% - No variation AMPLA ENERGÍA Company name Ampla Energia e Serviços S.A. Type of Society Publicly Traded Company Address Praça Leoni Ramos, N° 01, São Domingos, Niteroi Río de Janeiro, Brasil Phone (55 21) 2613 7000 Subscribed and paid-in capital (Th$) 232,659,757 Corporate purpose Study, plan, project, build and explore electricity production, transmission, transformation, distribution and sale systems, and provide related services that have been or may be conceded; carry out research in the energy sector, participate in regional, national or international organizations dedicated to the planning, operation, technical Exchange and business development related to the electricity industry and participate as a shareholder in other companies in the energy sector, even within the framework of Brazil´s privatization program. Core business Electricity distribution. Board of Directors Mario Fernando de Melo Santos (Presidente) Antonio Basilio Pires e Albuquerque (Vicepresidente) Marcelo Llévenes Luis F. Larumbe José Távora Batista José Alves de Mello Franco Otacilo de Souza Junior Senior Executives Abel Alves Rochinha – Gerente General Bruno Golebiovsky Claudio Manuel Rivera Moya Olga Jovanna Carranza Salazar Teobaldo José Cavalcante Leal Luis Fermin Larumbe Aragon Carlos Ewandro Naegele Moreira José Nunes de Almeida Neto Janaina Savino Vilella Carro José Alves de Mello Franco Déborah Meirelles Rosa Brasil Margot Frota Cohn Pires offer, through the development, financing, ownership and exploitation of electricity generation and transmission projects in the region. To comply with the former, the company may develop, amongst others, the following activities: a) electricity production through any generating means, its supply and sale, b) electricity transmission, c) provision of services related to its Corporate Purpose, d) to request, obtain or acquire and benefit from concessions, rights and permits as required. Core business Electricity generation (project) Regular Directors Carlo Carvallo Artigas Bernardo Larrain Matte Luis Ignacio Quiñones Sotomayor Juan Eduardo Vasquez Ramiro Alfonsín Balza Luis Felipe Gazitúa Achondo Alternate Directors Claudio Helfmann Soto Eduardo Lauer Rodríguez Bernardo Canales Fuenzalida Sebastián Moraga Zúñiga Rodrigo Pérez Stiepovic Rodrigo Paredes Barría Main Executives Camilo Charme Ackerman Executive Officer Business Relations The company has no commercial relations with Enersis. Business relations The company has no commercial relations with Enersis. Enersis’ stake (Direct and indirect) 30.59% Enersis stake (Direct and indirect) 92.03 % Proportion on Enersis’ Assets 1.94% AYSÉN ENERGÍA Company Name Aysén Energía S.A. Type of society Limited Liability Company TAX ID 76,091,595-5 Address Miraflores 383, Of, 1302 Santiago, Chile Phone (562) 2713 5000 Subscribed and paid-in capital (Th$) 4,900 Corporate purpose To comply with ordinance from Free Competition’s Defence Court as per Resolution No. 30 dated May 26, 2009; to comply with the commitment undertaken by HidroAysén S.A. with the community of Aysén XI Region, in the framework of development of Aysén Hydroelectric Project, to provide this region with a lower cost electricity AYSÉN TRANSMISIÓN Company name Aysén Transmisión S.A. Type of society Limited Liability Company registered in the Securities’ Register of the SVS TAX ID 76,041,891-9 Address Miraflores 383, office 1302 Santiago, Chile Phone (562) 2713 5000 Subscribed and paid-in capital (Th$) 22,368 Company purpose Develop, and alternatively or additionally manage, the electricity transmission systems required by the hydroelectric generation project that Hidroaysén is planning to build in the 11th Region of Aysén, del general Carlos Ibáñez del Campo. In order to do so, the following activities are Included in its corporate purpose: a) the design, development, construction, operation, ownership, maintenance and exploitation of electricity transmission systems, b) electricity transportation, and c) procurement of services related to its corporate purpose. Identification of the Subsidiaries and Associates Companies 291 Core business Electricity transmission Regular Directors Carlo Carvallo Artigas Bernardo Larrain Matte Ignacio Quiñones Sotomayor Juan Eduardo Vasquez Luis Felipe Gazitúa Achondo Ramiro Alfonsín Balza Alternate Directors Claudio Helfmann Soto Eduardo Lauer Rodríguez Bernardo Canales Fuenzalida Sebastián Moraga Zúñiga Rodrigo Pérez Stiepovic Rodrigo Paredes Barría Main Executives Camilo Charme Ackerman Executive Officer Business relations The company has no commercial relations with Enersis. Enersis stake (Direct and indirect) 30.59% - No variation CELTA Company name Compañía Eléctrica Tarapacá S.A. Type of society Limited Liability Company TAX ID 96,770,940-9 Address Santa Rosa 76 Santiago, Chile Phone (562) 2630 9000 Subscribed and paid-in capital (Th$) 331,770,543 Corporate Purpose Exploitation of electricity production, transmission, distribution and supply, both locally and abroad, for which it may obtain, acquire and benefit from the respective concessions and grants. Additionally its purpose shall also be the purchase and sale of natural gas, liquefied natural gas and diesel oil; to promote and develop renewable energy projects; to identify and develop Clean Development Mechanisms (Mecanismos de Desarrollo Limpio: MDL) and to act as depositary and trader of Emissions’ Reduction Certificates obtained from said projects. Additionally, the company will make or participate in all kinds of investments, especially related to the electrical business; it may particularly make, maintain and manage investments in energy projects linked to societies Gasoducto Atacama Compañía Limitada, Gasoducto Cuencanoroeste Limitada and Nor Oeste Pacífico Generación de Energía Limitada; as well as in Administradora Proyecto Atacama S.A. or in its legal successors. Likewise, the corporate purpose shall cover the renting, purchase, sale, administration and exploitation, of its own account or through third parties, of all kind of movable property, real estate, securities and other negotiable instruments, carry out studies and consultancies, provide all kind of services, including engineering services, works inspections, inspection and reception of materials and equipment, laboratory, experts’ opinion, business management in its several fields, environmental consultancy, including carrying out environmental impact studies, consultancy services in general in all specialities. Likewise, its purpose shall also be the catchment, extraction, treatment, desalination, transportation, distribution, trade, delivery and supply of sea water in every state, be it natural, potable, desalinated, or else treated, of its own account or through third parties. Core business Electricity Generation Board of Directors Pedro de la Sotta Sánchez Rodrigo Paredes Barría Humberto Espejo Paluz Senior Executives Valter Moro (Interim) Executive Officer Business Relations (i) Contract for Service Provision by Enersis: Internal audit and compliance control. Price: UF amount per worked hour that Enersis’ staff dedicated for the provision of services. (ii) Contract for Service Provision by Enersis: Communication, Global Services, Human Resources Administration and Equity Management. Price: monthly amount expressed in U.F. Enersis stake (Direct and indirect) 61.49% Proportion on Enersis Assets 0.17% CENTRAIS ELÉTRICAS CACHOEIRA DOURADA S.A. Company name Centrais Elétricas Cachoeira Dourada S.A. Type of society Limited Liability Company Address Rodovia GO 206, Km 0, Cachoeira Dourada Goiania Goiás, Brasil Phone (55 62) 3434 9000 Subscribed and paid-in capital (Th$) 11,530,538 Corporate purpose The corporate purpose of the Company is the carrying out of studies, planning, construction, installation, operation and exploitation of electricity generation plants, and the trade related to these activities. Likewise, the company may foster or participate in other societies formed for the production of electricity, in or out of the Sate of Goiás. Core business Electricity Generation Board of Directors Marcelo Llévenes Rebolledo Julia Freitas de Alcantara Nunes Paulo Valle Fróes da Cruz Junior Senior Executives Michele Siciliano – Executive Officer Paulo Valle Fróes Da Cruz Junior Matteo de Zan Luis Fermin Larumbe Aragon Nelson Ribas Visconti Janaina Savino Vilella Carro Carlos Ewandro Naegele Moreira Ana Cláudia Goncalves Rebello José Nunes de Almeida Neto José Alves de Mello Franco Margot Frota Cohn Pires Business relations The company has no commercial relations with Enersis. Enersis stake (Direct and indirect) 84.17% CENTRAL DOCK SUD S.A. Company name Central Dock Sud S.A. Type of society Limited Liability Company Address Avenida Debenedetti 1636 Dock Sud Avellaneda Phone 4229-1000 Subscribed and paid-in capital (Th$) 60,331,799 Company purpose The corporate purpose of the company is the generation of electricity and its block sale. The company may carry out any supplementary and subsidiary activities linked to its corporate purpose, having to that effect full legal capacity to acquire rights and commit obligations and execute all acts not forbidden by law, by these By-laws, the Document of the International Public Tender for the Sale of Central Dock Sud S.A’s Shares, or by any applicable regulation. Core business Electricity generation Regular Directors Héctor Martín Mandarano Alejandro Héctor Fernández Gaetano Salierno Roberto José Fagan Mauricio Bezzeccheri Pablo Vera Pinto Gerardo Zmijak Rodolfo Eduardo Berisso Paula María García Kedinger Alternate Directors Fernando Claudio Antognazza 292 2015 Annual Report Enersis María Inés Justo Borga Nicolás Turtutiello Jorge Peña Alfredo Aguilar Raúl Ángel Rodríguez Julián Matías Ferreiro Daniel Gustavo Ciaffone Senior Executives Daniel Garrido Executive Officer Miguel Fernández Moores Finance Officer Santiago Sajaroff Commercial Officer Oscar Rigueiro Operations Officer Graciela Babini Planning and Control Officer Business relations The company has no commercial relations with Enersis. Enersis stake (Direct and indirect) 40.25% Central Geradora Termeléctrica Fortaleza S.A. Company name Central Geradora Termeléctrica Fortaleza S.A. Type of society Limited Liability Company Address Rodovia 422, Km 1 s/n, Complexo Industrial e Portuário de Pecém Caucaia Ceará, Brasil Phone (55 85) 3464-4100 Subscribed and paid-in capital (Th$) 27,228,866 Corporate purpose To study, project, construct and explore electricity production, transmission, distribution and trading systems, awarded, permitted or authorised by any rights title, as well as any other activity related to the aforementioned activities; acquisition, obtaining and exploration of any right, concession or privilege related to the aforementioned activities, as well as the practice of all other acts and businesses necessary to reach its purpose; and participation in other companies or societies corporate capital, as shareholder, partner or on account of participation, whichever its purposes are. Core business Electricity generation. Board of Directors Marcelo Andrés Llévenes Rebolledo Marcelo Falcucci Julia Freitas de Alcantara Nunes Senior executives Michele Siciliano – Executive Officer Marcelo Falcucci Cláudia Maria Suanno Luis Fermin Larumbe Aragon Claudio César Weyne da Cunha Janaina Savino Vilella Carro Raimundo Câmara Filho Ana Cláudia Goncalves Rebello José Nunes de Almeida Neto José Alves de Mello Franco Margot Frota Cohn Pires Enersis stake (Direct and indirect) 16.18% CENTRALES HIDROELÉCTRICAS DE AYSÉN Company name Centrales Hidroeléctricas de Aysén S.A. Commercial relations The company has no commercial relations with Enersis. Type of society Limited Liability Company constituted in Santiago, Chile, included in the Securities Registry of the SVS Enersis stake (Direct and indirect) 84.38% CENTRAL VUELTA OBLIGADO Company name Central Vuelta Obligado S.A. Type of society Sociedad Anónima Cerrada Address Av. Thomas Edison 2701 Buenos Aires, Argentina Phone (5411) 5533 0200 Subscribed and paid-in capital (Th$) 27,407 Corporate purpose Generation of electricity and its commercialization by blocks and particularly, equipment purchasing management, construction, operation and maintenance of a thermal power plant named Vuelta Obligado complying with “ Management and Operation of Projects, Increase of Thermal Generation Availability and Generation Compensation Adaptation 2008-2011 Agreement” agreed upon November 25, 2010 by the National State and the signing Generation companies. Core business Construction of a thermal plant called Central Vuelta de Obligado. Regular Directors José María Vázquez (Chairman) Claudio Majul (Vice Chairman) Roberto José Fagan Fernando Claudio Antognazza Alternate Directors Leonardo Marinaro Juan Carlos Blanco Daniel Garrido Adrian Salvatore Senior Executives Leonardo Katz Executive Officer TAX ID 76,652,400-1 Address In Santiago, Chile, Miraflores Street 383, office 1302. In Coyhaique, Chile, Baquedano Street 260. In Cochrane, Chile, Teniente Merino Street 324. Phone (562) 2713 5000 Subscribed and paid-in capital (Th$) 180,445,662 Corporate purpose The development, financing, ownership and exploitation of a hydroelectric project, the “Aysén Project”, in the 11th Region of Aysén, which contemplates an estimated capacity of 2,750 MW distributed between five hydroelectric plants. In order to comply with its purpose, the following activities form part of its purposes: a) the production and transport of electricity; b) the supply and sale of electricity to its shareholders; c) the administration, operation and maintenance of hydraulic works, electrical systems and hydroelectric generation power plants. Core business Electricity generation (project). Regular Directors Carlo Carvallo Artigas Bernardo Larraín Matte Luis Ignacio Quiñones Sotomayor Juan Eduardo Vasquez Luis Felipe Gazitúa Achondo Ramiro Alfonsín Balza Alternate Directors Bernardo Canales Fuenzalida Eduardo Lauer Rodríguez Claudio Helfmann Soto Rodrigo Pérez Stiepovic Sebastián Moraga Zúñiga Rodrigo Paredes Barría Senior executives Camilo Charme Ackerman Executive Officer Business Relations The company has no commercial relations with Enersis Business relations The company has no commercial relations with Enersis. Enersis stake (Direct and indirect) 30.59% Identification of the Subsidiaries and Associates Companies 293 CIEN - Compañía de Interconexión Energética S.A. Company name CIEN - Compañía de Interconexión Energética S.A. TAX ID 96,800,570-7 Address Santa Rosa 76, 8th floor. Santiago, Chile Phone (56 2) 2675 2000 Type of society Limited Liability Company Address Santa Rosa 76, piso 8 Santiago, Chile Phone (56 2) 2675 2000 Type of society Limited Liabilty Company Address Praça Leoni Ramos, N° 1, piso 6, Bloco 2, São Domingos, Niterói Río de Janeiro, Brazil Phone (55 21) 3607 9500 Subscribed and paid-in capital (Th$) 51,083,711 Corporate purpose The purpose of the company is the production, industrialization, distribution and commercialization of electricity, including the import and export activities. In view of achieving the purposes mentioned above, the company will promote the study, planning and construction of facilities for production systems, transmission, conversion and distribution of electricity by capturing the necessary investment to develop the activities and by providing services. Beyond the purposes referred to, the company may promote the implementation of associated products, as well as inherent, ancillary or complementary activities to services and jobs that cometh to provide. To carry out the activities necessary to achieve its goals, the company may participate in other societies. Core business Electricity transmission. Board of Directors Marcelo Andrés Llévenes Rebolledo Cristine de Magalhães Marcondes Claudio Manuel Rivera Moya Senior Executives Abel Alves Rochinha – Executive Officer Claudio Manuel Rivera Moya Luis Fermin Larumbe Aragon Andre Oswaldo dos Santos José Alves de Mello Franco Deborah Meirelles Rosa Brasil Carlos Ewandro Naegele Moreira José Nunes de Almeida Neto Janaina Savino Vilella Carro Margot Frota Cohn Pires Business relations The company has no commercial relations with Enersis. Enersis stake (Direct and indirect) 84.38% CHILECTRA Company name Chilectra S.A. Type of society Publicly Traded Company 294 Subscribed and paid-in capital (Th$) 367,928,682 Subscribed and paid-in capital (Th$) 265,306,227 Corporate purpose Operate in Chile or abroad the distribution and sale of hydraulic, thermal, heat energy or any kind of electricity, as well as the distribution, transport and sale of fuels of any kind, thus supplying this energy or fuel directly or through other companies to as many customers possible. Core business Electricity distribution. Board of Directors Livio Gallo (Chairman) Marcelo Llévenes Rebolledo (Vice Chairman) Iris Boeninger von Kretschmann Gianluca Caccialupi Vincenzo Ranieri Hernán Felipe Errázuriz Correa Senior Executives Andreas Gebhardt Strobel Executive Officer Simone Tripepi Ramón Castañeda Ponce Gonzalo Vial Vial Daniel Gómez Sagner Andrea Pino Rodríguez Francisco Miqueles Ruiz Andrés González Cerruti Business relations (i) Contract for services provision by Enersis: Comprehensive Supply Service, Materials Procurement Management, Contracting of Works, Services and Consultancy, Reception, Storage and Supply of Recurrent and Non recurrent Materials, Sales Agent. Price: Mark-up over average price of consumed materials. (ii) Contract for services provision by Enersis: Financial Management, management and corporative services. Price: monthly amount fixed in UF. (iii) Contract for utilisation of Estadio Lo Sáez, located at Carlos Medina 858, Independencia. Price: Monthly amount fixed in UF per Chilectra worker. (iv) Commercial current accounts (v) Contract for administration services provision by Enersis. Price: Monthly amount fixed in UF. Enersis stake (direct and indirect) 99.09% - No variation. Proportion on Enersis Assets 6.82% CHILECTRA INVERSUD Company name Chilectra Inversud S.A. TAX ID 99,573,910-0 Corporate purpose Operate abroad, for its own or through third parties, the distribution and sale of electricity. It may make investments in foreign companies and make all kind of investments in all kind of financial instruments, such as; bonds, debentures, debt titles, credits, negotiable securities or other financial or commercial documents, all with to the objective of obtaining their natural and civil returns. In order to do so, it may constitute, amend, dissolve and liquidate companies in foreign countries and develop all other activities that are complementary and/or related to the aforementioned businesses. Core business Investment Company. Board of Directors Ramón Castañeda Ponce Francisco Miqueles Ruz Gonzalo Vial Vial Senior Executives Francisco Miqueles Ruz Executive Officer Business relations Contract for services provision by Enersis: Provision of internal audit and compliance control services. Price: UF amount per worked hour that Enersis’ staff dedicates to the services contracted. Enersis stake (direct and indirect) 99.09% - No variation. CHINANGO Company name Chinango S.A.C. Type of society Publicly Traded Company Address Avda, Víctor Andrés Belaúnde 147, Edificio Real 4, 7th floor, San Isidro Lima, Peru Subscribed and paid-in capital (Th$) 55,515,483 Corporate purpose The main purpose of the company is electricity generation, trading and transmission, being able to perform all acts and enter into all contracts that the Peruvian law allows for such purposes. Core business Electricity generation. Executive Officer Edegel S.A.A., represented by Julián Cabello Yong Francisco Pérez Thoden Van Velzen 2015 Annual Report Enersis Business relations The company has no commercial relation with Enersis. Enersis stake (direct and indirect) 46.88% (no variation) CHOCÓN Company name Hidroeléctrica El Chocón S.A. Type of society Publicly Traded Company Address Avda, España 3301 Buenos Aires, Argentina Subscribed and paid-in capital (Th$) 16,366,313 Corporate purpose Electricity Generation and its block comercialization Core business Electricity generation. Regular Directors Mauricio Bezzeccheri (Chairman) Gaetano Salierno (Vice Chairman) Daniel Martini Fernando Antognazza Ramiro Alfonsín Balza Alex Daniel Horacio Valdez Juan Carlos Nayar Alberto Eduardo Mousist Alternate Directors María Inés Justo Rodolfo Bettinsoli María Victoria Ramírez Sebastian Eduardo Guasco Fernando Carlos Luis Boggini Gustavo Alejandro Nagel Sergio Maschio Senior Executives Nestor Srebernic Executive Officer Business Relations The company has no comeercial relations with Enersis. Enersis stake (direct and indirect) 39.21% - No variation. CODENSA Company name Codensa S.A. E.S.P. NIT: 830.037.248-0 Type of society Limited Liability Company– Public residential utility company. Address Carrera 13 A #93-66 Bogotá, Colombia Phone (57 1) 601 6060 Subscribed and paid-in capital (Th$) 2,953,410 Corporate purpose The company’s main purpose is the distribution and sale of electricity, as well as all similar, connected, complementary and related activities with respect to electricity distribution and sale; the execution of electrical engineering works, design and consultancy, and sale of products for the benefit of its customers. The society may also perform other activities related to the provision of public services in general, manage and operate other utility companies, sign and execute special management agreements with other utility companies and sell or loan goods or services to other economic agents related with utilities, in or out of the country. The society may also participate as partner or shareholder in other utility companies, directly, or joining into partnerships with other persons, or in joint venture with them. Core business Electricity distribution. Regular Directors José Antonio Vargas Lleras Lucio Rubio Díaz David Felipe Acosta Ricardo Roa Barragan Ricardo Bonilla Gonzalez Helga María Rivas Orlando José Cabrales Martínez Alternate Directors Carlos Mario Restrepo Leonardo López Vergara Ernesto Moreno Restrepo Álvaro Torres Macías José Alejandro Herrera Lozano Vicente Noero Arango Senior executives David Felipe Acosta Correa Executive Officer Andrés Caldas Rico Legal and Corporte Affairs Officer Carlos Mario Restrepo Market Manager David Felipe Acosta Infrastructure & Networks Manager Aurelio Ricardo Bustilho de Oliveira Administration, Finance and Control Officer María Celina Restrepo Santamaría Communications Officer Rafael Carbonell Blanco Human Resources and Organization Officer Diana Marcela Jiménez Regulation, Environment and Institutional Relations Officer Raffaele Cutrignelli Audit Officer Giorgio De Champdore´ Procurement Officer Ana Patricia Delgado Meza Systems and Telecommunications ICT Officer Ana Lucia Moreno Moreno General Services and Property Officer Robert Camilo Torres Vega Health and Work Safety Officer Juan Manuel Pardo Gómez Planning and Control Officer Leonardo López Vergara Administration, Finance and Investor Relations Officer Carlos Eduardo Ruiz Diaz Legal Councel Business relations The company has no commercial relations with Enersis. Enersis stake (Direct and indirect) 48.39% Proportion on Enersis assets 11.12% COELCE Company name Companhia Energética do Ceará Type of society Publicly Traded Company Address Rua Padre Valdevino, 150 - Centro Fortaleza, Ceará, Brasil Phone (55 85) 3453-4082 Subscribed and paid-in capital (Th$) 79,381,838 Corporate purpose Generation, transmission, distribution and sale of electricity, performing awarded or authorised correlated services, and the development of activities associated with the services, as well as celebrating trading acts related to those activities. Likewise, the company may carry out studies, planning, projects, construction and operation of production, transformation, transportation and storage, distribution and sale of energy systems, of any origin, in the form of concessions, authorisations or permits it may be awarded, with jurisdiction in the territory of the State of Ceará, and others defined in the Grantor. The Society may also carry out studies, projects and planning and research and development programmes of new energy sources, especially renewable, and the study, making and execution, in the energy sector, of plans and programmes for economic and social development, in places of interest for the community and for the company. Core business Distribution and sale of electricity and related services in the State of Ceará, Brazil Regular Directors Mario Fernando de Melo Santos (Chairman) Marcelo Llévenes Rebolledo (Vice Chairman) Claudio Manuel Rivera Moya Antonio Basilio Pires de Carvalho e Albuquerque José Alves de Mello Franco Gianluca Caccialupi Jorge Parente Frota Júnior Francisco Honório Pinheiro Alves João Francisco Landim Tavares Fernando Augusto Macedo de Melo Luis Fermin Larumbe Aragon Alternate Directors Olga Jovanna Carranza Salazar José Nunes de Almeida Neto Maria Eduarda Fisher Alcure Bruno Golebioviski Teobaldo José Cavalcante Leal José Távora Batista Carlos Ewandro Naegele Moreira Marcia Massotti de Carvalho Robson Figueiredo de Oliveira Identification of the Subsidiaries and Associates Companies 295 Nelson Ribas Visconti Vládia Viana Regis Senior Executives Abel Alves Rochinha Executive Officer José Távora Batista Claudio Manuel Riveral Moya Olga Jovanna Carranza Salazar Teobaldo José Cavalcante Leal Luis Fermin Larumbe Aragón Carlos Ewandro Naegele Moreira José Nunes de Almeida Neto Janaina Savino Vilella Carro José Alves de Mello Franco Deborah Meirelles Rosa Brasil Margot Frota Cohn Pires Address Bartolomé Mitre 797, 11th floor, Buenos Aires, Argentina Subscribed and paid-in capital (Th$) 5,481 Hilde Marcela Cornejo Martinez Alternate Directors Heliodoro Mayorga Moncada Leonardo López Vergara Victoria Irene Sepúlveda Corporate purpose The provision of high tension electricity transmission services, in the case of linking both national and international electrical systems, according to current laws, to the purpose of which it may participate in national or international tenders, become a high tension electricity transmission concessionaire, locally or abroad, and perform those activities deemed necessary to carry out its purposes. Business Relations The company has no commercial relations with Enersis. Core business International interconnected electricity transmission. Enersis stake (Direct and indirect) 64.86% COMPAÑÍA ENERGÉTICA VERACRUZ S.A.C Company name Compañía Energética Veracruz S.A. Type of society Limited Liability Company Address Jr, Teniente César López Rojas 201, Maranga, San Miguel Lima, Perú Subscribed and paid-in capital (Th$) 601,363 Croporate purpose Develop and operate hydroelectric projects located in any river basin in Peru. Directors: Does not apply. Senior executives Úrsula De La Mata Torres Executive Officer Business relations The company has no commercial relations with Enersis. Enersis stake (Direct and indirect) 100% - no variation CTM – Compañía de Transmisión del Mercosur S.A. Company name Compañía de Transmisión del Mercosur S.A. Type of society Publicly traded company constituted in Buenos Aires, Argentina Regular Directors Juan Carlos Blanco Fernando Boggini Maurizio Bezzeccheri Alternate Directors Fernando Antognazza Maria Inés Justo Maria Victoria Ramírez Senior executives Sandro Ariel Rollan Executive Officer Business relations The company has no commercial relations with Enersis. Enersis stake (direct and indirect) 84.38% DISTRIBUIDORA ELÉCTRICA DE CUNDINAMARCA Company name Distribuidora Eléctrica de Cundinamarca S.A. E.S.P. Type of society Limited Liability Company TAX ID 900,265,917-0 Address Carrera 9 N° 73-44. 5th floor Colombia Subscribed and paid-in capital (Th$) 47,567,754 Corporate purpose The company’s main purpose is the distribution and commercialization of electricity, and the execution of all associates, complementary and related activities to distribution and commercialization of electricity, public works, designs and electrical engineering consulting, and the commercialization of products for its customers’ benefit. Core business Electricity distribution and commercialization Regular Directors Mauricio Angarita David Felipe Acosta Senior Executives Álvaro Torres Macías Executive Officer Commercial Relations The company has no commercial relations with Enersis. Enersis’ stake (direct and indirect) 23.71% - No variation DISTRILEC INVERSORA Company name Distrilec Inversora S.A. Type of society Limited Liability Company Address San José 140 Buenos Aires, Argentina Phone (54 11) 4370 3700 Subscribed and paid-in-capital (Th$) 27,707,967 Corporate purpose Exclusively to invest in companies constituted or to be constituted whose main activity is the distribution of electricity or that directly or indirectly participate in companies with that principal business through all kind of financial and investment activities, except those in the laws of financial entities, the purchase and sale of public and private debt paper, bonds, shares, negotiable instruments and the granting of loans, and the placement of its funds in bank deposits of any kind. Core business que desarrolla Investment Company. Regular Directors Maurizio Bezzeccheri Gaetano Salierno (Vice Chairman) María Inés Justo Borga Daniel Horacio Martini Fernando Claudio Antognazza Gonzalo Pérés Moore Mariano Luis Luchetti Guillermo Pablo Reca Jorge Carlos Bledel Juan Carlos Casas Alternate Directors Mónica Diskin Paula Bossignon Rodrigo Quesada Vanesa Carrafiello Mariana Mariné Andrés Leonardo Vittone Edgardo Licen Elena Sozzani Máximo Reca Tomás Pérés Business Relations The company has no commercial relations with Enersis. 296 2015 Annual Report Enersis Enersis’ stake (Direct and indirect) 50.93% - No variation. Proportion on Enersis’ Assets 0.02% EDEGEL Company name Edegel S.A.A. Type of society Publicly Traded Company Address Avda, Víctor Andrés Belaúnde 147, Edificio Real 4, 7th floor, San Isidro Lima, Peru Subscribed and paid-in capital (Th$) 529,213,705 Corporate purpose In general, electricity generation activities, also the civil, industrial, commercial and any other act or operation related or leading to its Main Corporate Purpose. Core business Electricity generation. Regular Directors Carlos Temboury (Chairman) Francisco José Pérez Thoden Van Velzen Daniel Abramovich Ackerman Ramiro Alfonsín Balza Paolo Giovanni Pescarmona Juan Francisco García Calderón Claudio Herzca Buchdahl Alternate Directors Guillermo Lozada Pozo Carlos Rosas Cedillo Rocío Pachas Sotos Carlos Sedano Tarancón Úrsula De La Mata Torres Juan Miguel Cayo Mata Mariano Felipe Paz Soldán Franco Senior executives Francisco Pérez Thoden Van Velzen Executive Officer Julián Cabello Yong Operations Officer Carlos Rosas Cedillo Energy Management and Trading Officer Daniel Abramovich Ackerman Legal Councel Business relations The company has no commercial relations with Enersis. Enersis stake (Direct and indirect) 58.60% EDELNOR Company name Empresa de Distribución Eléctrica de Lima Norte S.A.A. Type of society Publicly Traded Company Address Jr, Teniente Cesar López Rojas 201 Urb, Maranga, San Miguel Lima, Peru Phone (51 1) 561 2001 Subscribed and paid-in capital (Th$) 110,831,242 Corporate purpose Engage the activities of distribution, transmission and generation of electricity in accordance with the provisions of current legislation. Additionally, the company may engage in the sale of goods in any form, as well as providing consulting and financial services, among others, except those services, which require specific authorization in accordance with current law. Core business Distribution of electricity Board of Directors Carlos Temboury Molina (Chairman) Fernando Fort Marie (Vice Chairman) Mario Ferrai Quiñe Walter Nestor Sciutto Paolo Giovanni Pescarmona Gianluca Caccialupi Carlos Alberto Solis Pino José de Bernardis Guglievan Senior Executives Walter Nestor Sciutto Executive Officer Mariano Luis Luchetti Edgardo Licen Alternate Directors Paula Andrea Aguiar Rodolfo Silvio Bettinsoli Ignacio Federico Guerrido Osvaldo Arturo Reca Class B Regular Directors Fernando Claudio Antognazza Ernesto Pablo Badaraco Gerardo Marcelo Rogelio Silva Iribarne María Inés Justo Borga Alternate Directors Rodrigo Quesada Roberto Fagan Mariana Mariné Mónica Diskin Senior Executives Juan Carlos Blanco Executive Officer Business relations The company has no commercial relations with Enersis. Enersis’ stake (Direct and indirect) 71.62%- No variation. Proportion on Enersis’ Assets 0.05% Business relations The company has no commercial relations with Enersis. ELÉCTRICA CABO BLANCO S.A.C. Enersis stake (Direct and indirect) 75.54% - No variation. Proportion on Enersis’ Assets 1.53% EDESUR Company name Empresa Distribuidora Sur S.A. Type of society Publicly Traded Company Address San José 140 (1076) Capital Federal, Argentina Phone (54 11) 4370 3700 Subscribed and paid-in capital (Th$) 47,061,353 Corporate purpose Distribution and commercialization of electricity and related activities. Core business Electricity distribution. Class A Regular Directors Mauricio Bezzeccheri (Chairman) Gaetano Salierno (Vice Chairman) Daniel Horacio Martini Company name Eléctrica Cabo Blanco S.A.C. Type of society Publicly Traded Company Address Jr, Teniente César López Rojas 201, Maranga, San Miguel Lima, Perú Subscribed and paid-in capital (Th$) 9,677,424 Corporate purpose In general, to invest in other companies, preferably in those oriented to exploiting natural resources, and very specially, in those linked to distribution, transmission and generation of electricity. Likewise, it may make capital investments in any kind of movable property, including shares, bonds and any other kind of securities, as well as administration of said investments within limits fixed by the Board and the General Shareholders’ Meeting. The activities that make up the corporate purpose may be developed in Peru and abroad. Core business Investment company. Senior executives Manuel Cieza Paredes Executive Officer Business relations The company has no commercial relations with Enersis. Identification of the Subsidiaries and Associates Companies 297 Enersis’ stake (Direct and indirect) 100%- No variation Proportion on Enersis’ Assets. 0.41% ELECTROGAS Company name Electrogas S.A. Type of society Limited Liability Company TAX ID 96,806,130-5 Address Alonso de Córdova 5900, office 401, Las Condes Santiago, Chile Phone (562) 2299 3400 Corporate purpose The purpose of the company is the transportation services for natural gas and other fuels, for its own or third party’s account, for which it may construct, operate and maintain gas, oil and multi- use pipelines and complementary facilities. Core business Gas transportation. Subscribed and paid-in capital (Th$) 15,093,866 Regular Directors Ramiro Alfonsin Balza Juan Eduardo Vásquez Moya Ricardo Santibáñez Zamorano Eduardo Lauer Rodríguez Marco Arróspide Rivera Pedro de la Sotta Sánchez Alternate Directors Andrés Opazo Irarrázaval Patricio Pérez Cotapos Luis Le fort Pizarro Juan Oliva Vásquez Rodrigo Bloomfield Sandoval Alex Díaz Sanzana Senior Executives Alan Fischer Hill Executive Officer Commercial Relations The company has no commercial relations with Enersis. Enersis’ stake (Direct and indirect) 25.49% - No variation. EMGESA Company name Emgesa S.A. E.S.P. TAX ID 860,063,875-8 Type of society Private Commercial Corporation Public Utility Company Address Carrera 11 N°82-76, piso 4 Santa Fe de Bogotá, D.C. Colombia 298 Subscribed and paid-in capital (Th$) 146,498,021 EMGESA PANAMÁ, S.A. Corporate purpose The corporate purpose of the company is generation and sale of electricity and sale of fuel gas, as well as all activities similar, connected, supplementary and related to its main purpose. Core business Electricity and fuel gas generation and commercialization. Regular Directors Lucio Rubio Díaz José A, Vargas Lleras Ricardo Roa Barragán Ricardo Bonilla Gonzalez Vacant position Luisa Fernanda Lafaurie Rivera Bruno Riga Alternate Directors Fernando Gutiérrez Medina Diana Marcela Jiménez Aurelio Bustilho de Oliveira Vacant position Álvaro Torres Macías José Alejandro Herrera Lozano Andrés López Valderrama Senior Executives Bruno Riga Executive Officer Bruno Riga Generation Officer Andrés Caldas Rico Legal and Corporate Affairs Officer Fernando Javier Gutiérrez Medina Energy Management and Trading Officer Aurelio Ricardo Bustilho de Oliveira Administration, Finance and Control Officer Robert Camilo Torres Vega Health and Work Safety Officer María Celina Restrepo Santamaría Communication Officer Rafael Carbonell Blanco Human Resources and Organization Officer Diana Marcela Jiménez Rodríguez Regulation, Environment and Institutional Relations Officer Raffaele Cutrignelli Audit Officer Giorgio De Champdore´ Procurement Officer Ana Patricia Delgado Meza Systems and Telecommunications ICT Officer Ana Lucia Moreno Moreno General Services and Property Officer Juan Manuel Pardo Gómez Planning and Control Officer Leonardo López Vergara Administration, Finance and Investor Relations Officer Carlos Eduardo Ruiz Diaz Legal Councel Commercial Relations The company has no commercial relations with Enersis. Enersis stake (Direct and indirect) 37.72% Proportion on Enersis’ Assets 2.92% Company name Emgesa Panamá, S.A. Type of society Limited Liability Company. Address Panama City Panama Corporate purpose Purchase, sale, import and export of electricity. Additionally, the company may perform other industrial and commercial activities in general; it is able to celebrate all transactions, operations, business, events and activities that are permitted by the Panamanian law to corporations even if they are not expressly mentioned in this corporate purpose. Core business Purchase, sale, import and export of electricity. Subscribed and paid-in capital (Th$) 17,034 Directors Fernando Gutiérrez Medina Leonardo López Vergara Juan Manuel Pardo Andrés Caldas Rico Senior Executives Fernando Gutiérrez Medina Chairman and Legal Representative Juan Manuel Pardo Gómez Vice President (First) Leonardo López Vergara (Second) Vice President Andrés Caldas Rico Secretary Elizabeth Laverde Enciso Treasurer Business Relations The company has no commercial relations with Enersis. Enersis’ stake (Direct and indirect) 37.72% EMPRESA DE ENERGÍA DE CUNDINAMARCA Company name Empresa de Energía de Cundinamarca S.A. Type of society Limited Liability Company TAX ID 860,007,638-0 Address Carrera 11 N° 93-52 Bogotá D.C. Phone (571) 7051800 Subscribed and paid-in capital (Th$) 8,876,251 Corporate purpose Electricity generation, commercialization and distribution utility in the Cundinamarca district and its surroundings. It owns an electricity generation power plant in Río Negro. 2015 Annual Report Enersis Core business Electricity generation, commercialization and distribution. Senior executives Leonel Martínez Garrido Executive Officer Regular Directors Fabiola Leal Castro David Alfredo Riaño Carlos Alberto Rodrigues Guzmán Álvaro Cruz Vargas Paulo Jairo Orozco Díaz Aurelio Bustilho de Oliveira Gabriel Ignacio Rojas Londoño Alternate Directors Nubia Prada Sanmiguel José Arcos Rodríguez Miguel Felipe Mejía Uribe Cuarto renglo Vacante David Feferbaum Gutfraind Diana Marcela Jímenez Rodríguez Hilde Marecla Cornejo Martínez Senior Executives Jaime Alberto Vargas Barrera Executive Officer Jualián Camilo Castañeda Savedra Network Management Officer / First Deputy Executive Officer Maria Elizabeth Laverde Enciso Finance and Adminstrative Officer / Second Deputy Executive Officer Diego Mauricio Muñoz Hoyos Commercial Officer Mauricio Enrique Perea Diaz Law Office Head Business relations The company has no commercial relations with Enersis. Enersis stake (Direct and indirect) 19.52% - No variation EMPRESA ELÉCTRICA DE COLINA Company name Empresa Eléctrica de Colina Ltda. Type of society Limited Liability Company TAX ID 96,783,910-8 Address Chacabuco 31, Colina Santiago, Chile Phone (56 2) 2844 4280 Subscribed and paid-in capital (Th$) 82,222 Corporate purpose Distribution and sale of electricity and home, sports, entertainment and computer electrical appliances. Core business Electricity distribution. Pooled administration Leonel Martínez Garrido Gonzalo Labbé Reyes Commercial relations (i) Contract for service provision by Enersis: Comprehensive Supply Service, Materials Procurement Management, Contracting of Works, Services and Consultancies, Reception, Storage and Supply of Recurrent and Non recurrent Materials, Sales Agent. Price: Mark-up over average price of consumed materials. (ii) Contract for service provision by Enersis: Provision of internal audit and compliance control services. Price: Amount of UF per hour worked that Enersis’ staff dedicates to the contracted services. (iii) Contract for management services provision by Enersis Price: monthly amount in UF. Enersis stake (Direct and indirect) 99.09% - No variation. Phone (5411) 4307 3040 Corporate purpose Perform investments in companies dedicated to the production, transmission and distribution of electricity and its commercialization, as well as financial activities except those limited by the law to banks. Core business Investment Company. Subscribed and paid-in capital (Th$) 38,284,638 Regular Directors Mauricio Bezzeccheri (Chairman) Gaetano Salierno (Vice Chairman) Maria Inés Justo Borga Alternate Directors Rodrigo Quesada Mariana Cecilia Mariné María Victoria Ramírez EMPRESA ELÉCTRICA DE PIURA S.A. Business relations The company has no commercial relations with Enersis. Company name Empresa Eléctrica de Piura S.A. Type of society Publicly traded company Enersis’ stake (Direct and indirect) 59.98% Address Jr, Teniente César López Rojas 201, Maranga, San Miguel Lima, Peru Subscribed and paid-in capital (Th$) 16,993,469 Corporate purpose The main purpose of the company is the generation, sale and transmission of electricity, performing all acts and signing all agreements allowed by Peruvian Legislation to that effect. EN - BRASIL COMÉRCIO E SERVIÇOS S.A. Company name En- Brasil Comércio e Serviços S.A. Type of society Limited Liability Company constituted pursuant to Brazilian Law. Address Praça Leoni Ramos nº 01 Parte, São Domingos, Niterói, Rio de Janeiro, Brasil. Core business Electricity generation. Phone (55 21) 2613 7000 Directors Francisco Pérez Thoden van Velzen (Chairman) Carlos Temboury (Vice Chairman) Paolo Giovanni Pescarmona Senior executives Francisco Pérez (Edegel’s representative) Executive Officer Business relations The company has no commercial relations with Enersis. Subscribed and paid-in capital (Th$) 1,886,685 Corporate purpose The company’ objective is to participate in the capital of other companies in Brazil or abroad, trade in general, even imports and exports, through retail or wholesale transactions of various products, and to provide general services for the energy electricity sector and others. Enersis stake (Direct and indirect) 96.50% - No variation ENDESA ARGENTINA Company name Endesa Argentina S.A. Type of society Publicly Traded Company Core business Delivery of services in general to the electricity industry and others. The company doesn’t have any administration council (Board of Directors) Senior Executives Marcus Oliver Rissel (Administrator) Executive Officer Rafael de Bessa Sales (Administrator) Address Av. España 3301 Buenos Aires, Argentina Business relations The company has no commercial relations with Enersis. Identification of the Subsidiaries and Associates Companies 299 Enersis stake (Direct and indirect) 84.38% ENEL BRASIL Company name Enel Brasil S.A. Type of entity Limited Liability Company Address Praça Leoni Ramos, N°1, 7° andar, bloco 2 Parte, Niterói, Río de Janeiro, Brazil Phone (5521) 3607 9500 Subscribed and paid-in capital (Th$) 216,672,829 Company purpose Participate in the capital of other companies in any segment of the electricity sector, including companies that provide services to companies in that sector, in Brazil or abroad; transmission, distribution, generation or commercialization of electricity and related activities and participation, individually or through joint ventures, consortia or other similar forms of association, in tenders, projects and enterprises for the supply of services and activities previously mentioned. Core business Investment Company. Board of Directors Mario Fernando de Melo Santos (Chairman) Luca D’Agnese (Vice Chairman) (Executive Officer of Enersis) Antonio Basilio Pires de Carvalho e Albuquerque Luis Fermín Larumbe Aragón Gianluca Caccialupi Senior Executives Marcelo Llévenes Rebolledo Luis Fermín Larumbe Aragón Antonio Basilio Pires de Carvalho e Albuquerque Carlos Ewandro Naegele Moreira José Alves de Mello Franco José Nunes de Almeida Neto Janaina Savino Vilella Carro Flavia da Silva Baraúna Margot Frota Cohn Pires Marcia Massotti de Carvalho Gabriel Maluly Neto Manuel Ricardo Soto Retamal Guilherme Gomes Lencastre Matteo de Zan Michele Siciliano Cristine de Magalhães Marcondes Business relations The company has no commercial relations with Enersis. Enersis stake (Direct and indirect) 84.38% Proportion on Enersis’ Assets 8.22% CEMSA Company name Comercializadora de Energía S.R.L. Type of society Limited Liability Company Address San José 140, piso 6, CABA Buenos Aires, Argentina Phone (5411) 4124-1600 Subscribed and paid-in capital (Th$) 768,042 Corporate purpose The purpose of the company is the wholesale purchase and sale of electricity capacity and energy produced and/or consumed by third parties, including the import and export of electricity power and energy and the marketing of royalties, and the supply and/or performing of services related to the above activity, both in the country as well as abroad of information technology services and/or of control of the operation and/or of telecommunications. Likewise, the Company shall be entitled to execute buy/sell operations or to purchase and sell natural gas, and/or its transportation, including the importation and/or exportation of natural gas and/or the marketing of regalia/ privileges, as well as to provide and/or execute services related to the abovementioned activity. Also, the Company shall be entitled to execute buy/sell operations or to purchase and sell crude petroleum, and/or lubricants and/or to transport such elements, including the importation and/ or exportation of liquid fuels and the marketing of regalia/privileges, as well as to provide and/or execute services related to the aforementioned activity. Core business Trading of electricity, gas and derivatives. IT services and/or operation control and/or telecommunications. Regular Managers Maurizio Bezzeccheri Gaetano Salierno Alternate Managers María Inés Justo Borga Fernando Carlos Luis Boggini Senior Executives Fernando C, Antognazza Executive Officer Business relations The company has no commercial relations with Enersis. Enersis stake (Direct and indirect) 81.99%- No variation Proportion on Enersis’ Assets 0.05% ENDESA CHILE Company name Empresa Nacional de Electricidad S.A. Type of society Publicly Traded Company TAX ID 91.081.000-6 Address Santa Rosa 76 Santiago, Chile Phone (56 2) 2630 9000 Subscribed and paid-in capital (Th$) 1,331,714,085 Corporate purpose Generation and supply of electricity, engineering and consulting services in Chile and abroad; and the construction and exploitation of infrastructure works. Core business Electricity Generation Board of Directors Enrico Viale (Chairman) Ignacio Mateo Montoya (Vice Chairman) Isabel Marshall Lagarrigue Francesca Gostinelli Francesco Buresti Vittorio Vagliasindi Felipe Lamarca Claro Enrique Cibié Bluth Francesco Buresti Jorge Atton Palma Senior Executives Valter Moro Executive Officer Ramiro Alfonsin Balza Deputy Executive Officer Maria Teresa Gonzalez Ramirez Luis Ignacio Quiñones Sotomayor Federico Polemann Fernando La Fuente Vila Bernardo Canales Fuenzalida Humberto Espejo Paluz Claudio Helfmann Soto. Business relations (i) Contract for services provision by Enersis: Supply Services, Materials Procurement Management, Contracting of Works, Services and Consultancies. Price: Directly proportional to costs associated to staff list and to operational and maintenance expenses. Every year, value for next annual period is determined, introducing the proper improvements and efficiencies. (ii) Contract for services provision by Enersis: Money desk and treasury service. Price: Monthly amount expressed in UF. (iii) Contract for services provision by Enersis: Accounting Services. Price: Monthly amount expressed in UF. (iv) Contract for services provision by Enersis: Service provision of internal audit and compliance control. Price: UF amount per worked hour that Enersis staff dedicates to contracted services. (v) Agreement for the use of the Stadium Lo Sáez located at Carlos Medina 858, Independencia. Price: Monthly amount expressed in UF per Endesa Chile’s employee. (vi) Commercial current accounts. (vii) Loan from Enersis for $250 million dated December 16, 2015, due on December 15, 2016. As of December 31, 2015, the balance was $250 million. 300 2015 Annual Report Enersis  (viii) Administration services provision agreement by Enersis. Subscribed and paid-in capital (Th$) 31,362 Enersis’ stake (direct and indirect) 59.98% - No variation Proportion on Enersis’ Assets 30.72% ENDESA COSTANERA Company name Endesa Costanera S.A. Type of society Publicly Traded Company Address Avda, España 3301, Buenos Aires, Argentina Phone (5411) 4307 3040 Subscribed and paid-in capital (Th$) 39,811,128 Corporate purpose Electricity generation and trading in blocks of energy. Core business Electricity generation Regular Directors Mauricio Bezzeccheri (Chairman) Gaetano Salierno (Vice Chairman) Daniel Martini Ramiro Alfonsín Balza María Inés Justo César Fernando Amuchástegui Matías Maria Brea Alternate Directors Fernando Carlos Luis Boggini Rodolfo Silvio Bettinsoli María Victoria Ramírez Rodrigo Quesada Fernando Claudio Antognazza Mariana Mariné Mónica Diskin Juan Donini Senior Executives Roberto José Fagan Executive Officer Business relations The company has no commercial relations with Enersis. Enersis stake (Direct and indirect) 45.39% - No variation ENEL GREEN POWER MODELO I EÓLICA S.A. Company name Enel Green Power Modelo I Eólica S.A. Type of society Limited Liability Company. Address Praça Leoni Ramos, Nº 1, 5º andar, bloco 2 Niterói, RJ, Brazil Corporate purpose Wind Electricity generation Core business Electricity generation. Administration Newton Souza de Moraes André Bruno Santos Gordon Afonso Márcio Teixeira Trannin Business relations The company has no commercial relations with Enersis. Enersis’ stake (Direct and indirect) 0.82% - No variation ENEL GREEN POWER MODELO II EÓLICA S.A. Company name Enel Green Power Modelo II Eólica S.A. Type of society Limited Liability Company Address Praça Leoni Ramos, Nº 1, 5º andar, bloco 2 Niterói, RJ, Brasil, CEP: 24.210-205 Corporate purpose Wind electricity generation Core business Electricity generation. Subscribed and paid-in capital (Th$) 26,882 Administration Newton Souza de Moraes André Bruno Santos Gordon Afonso Márcio Teixeira Trannin Business relations The company has no commercial relations with Enersis. Enersis’ stake (Direct and indirect) 0.82% - No variation EÓLICA CANELA Company name Central Eólica Canela S.A. Type of society Limited Liability Company TAX ID 76,003,204-2 Address Santa Rosa 76 Santiago, Chile Phone (562) 2630 9000 mainly wind energy, identify and develop clean development mechanism (MDL in its Spanish acronym) projects and act as depository and trader in emission reduction certificates originated from these projects. The generation, transport, distribution, supply and sale of electricity, for whose purpose it may acquire and exploit the respective concessions and grants. Core business Wind electricity generation. Regular Directors Bernardo Canales Fuenzalida (Chairman) Carlo Carvallo Artigas Ramiro Alfonsín Balza Claudio Helfmann Soto Juan Cristóbal Pavez Recart Alternate Directors Carlos Peña Garay Ariel González Rogget Claudio Betti Pruzzo Senior Executives Carlo Carvallo Artigas Executive Officer Commercial relations (i) Contract for services provision by Enersis Internal audit and compliance control. Price: UF amount per worked hour that Enersis’ staff dedicated for the provision of services. (ii) Contract for administration services provision by Enersis. Price: Monthly amount fixed in UF. Enersis’ stake (direct and indirect) 61.48% EÓLICA FAZENDA NOVA Company name Eólica Fazenda Nova o Geraçãoa e Comercialização de Energia S.A. Type of society Limited Liability Company Address Rua Felipe Camarão, nº 507, sala 104 Ciudad de Natal, Rio Grande do Norte, Brazil Phone (5521) 3607 9500 Subscribed and paid-in capital (Th$) 329,573 Corporate purpose Generation, transmission, distribution and trading of energy, participation in other companies as a partner, shareholder, or quota holders and import machinery and equipment related to the generation, transmission, distribution and trading of wind energy. Core business Electricity generation. Administration Marcelo Llévenes Rebolledo Chairman Guilherme Gomes Lencastre Subscribed and paid-in capital (Th$) 12,284,743 Corporate purpose Promote and develop renewable energy projects, Business relations The company has no commercial relations with Enersis. Identification of the Subsidiaries and Associates Companies 301 Enersis’ stake (Direct and indirect) 84.34% GASATACAMA Company name GasAtacama S.A. Type of society Limited Liability Company TAX ID 96,830,980-3 Address Miraflores N° 383, 12 floor Santiago, Chile Phone (562) 2366 3800 Subscribed and paid-in capital (Th$) 176,857,970 Corporate purpose The purpose of the company is: a) the administration and management of the companies Gasoducto Atacama Chile Limitada, Gasoducto Atacama Argentina Limitada, GasAtacama Generación Limitada and other companies agreed to by the partners; b) investment of its own or third party’s resources, in all kinds of assets, corporeal or incorporeal, securities, shares and commercial paper. Core business Investment Company. Regular Directors Humberto Espejo Paluz Claudio Helfmann Soto Rodrigo Paredes Barría Ramiro Alfonsín Balza Alternate Directors Bernardo Canales Fuenzalida Carlo Carvallo Artigas Senior executives Valter Moro Executive Officer Business relations The company has no commercial relations with Enersis. Enersis stake (Direct and indirect) 60.74% Corporate purpose The corporate purpose of the company is: a) to exploit generation, transmission, purchase, distribution and sale of electric energy or of any other nature; b) the purchase, extraction, exploitation, processing, distribution, trading and sale of solid, liquid and gas fuels; c) Provision and sale of engineering services; d) The obtaining, purchase, transfer, lease, lien and exploitation, in any form, of the concessions referred to in the General Electrical Services Law; of maritime concessions and of rights of any nature to use water; e) natural gas’s freight, by its own means or together with third parties, within the Chilean territory or in other countries, including construction, installation and exploitation of pipelines and other activities related directly or indirectly with the same; f) capture, extraction, treatment, desalination, transportation, distribution, sale, delivery and supply of sea water, in every form, either natural, potable, desalinated or treated otherwise, on its own account or through third parties; g) to invest in all forms of corporeal or incorporeal property, movable or immovable; h) the organization and constitution of all kinds of societies, the objectives of which are related or linked to energy in any form, or that have electricity as main consumable, or related to any of the aforementioned activities. In order to comply with its corporate purpose, the company may carry out all acts and sign all agreements conducive to the realisation of the corporate purpose, including the purchase, sale or acquisition, under any title, of all corporeal or incorporeal property, movable or immovable, the becoming part of existing corporations or partnerships, or to form new ones, whatever their type or nature. Core business Electricity generation and gas transportation. Regular Directors Ramiro Alfonsin Balza Claudio Helfmann Soto Pablo Arnés Poggi Humberto Espejo Paluz Alternate Directors Rodrigo Paredes Barría Bernardo Canales Fuenzalida Carlo Carvallo Artigas Senior Executives Valter Moro Executive Officer Address Miraflores N° 383, 12 floor Santiago, Chile Teléfono (562) 2366 3800 Capital suscrito y pagado (M$) 126,309,044 Corporate purpose The company´s purpose is the transportation of natural gas, through its own means or together with other parties within Chile or other countries, including the construction, location and exploitation of gas pipelines and other activities related directly or indirectly to it. The company has an Agency based in Argentina, “Gasoducto Cuenca Noroeste Limitada Sucursal Argentina”, and its purpose is the execution of a pipeline between the town of Cornejo, Salta province and the Argentine- Chilean border in the vicinity of the Jama border crossing located in the second region of Chile. Core business Gas transportation. Regular Directors Alex Díaz Sanzana Claudio Helfmann Soto Rodrigo Paredes Barría Alternate Directors Bernardo Canales Ricardo Santibañez Zamorano Senior executives Valter Moro Executive Officer Business relations The company has no commercial relations with Enersis. Enersis stake (Direct and indirect) 60.74% GASODUCTO TALTAL Company name Gasoducto Taltal S.A. Type of society Limited Liability Company TAX ID 77,032,280-4 GASATACAMA CHILE Business relations The company has no commercial relations with Enersis. Address Miraflores N° 383, 12 floor Santiago, Chile. Company name GasAtacama Chile S.A. Type of society Limited Liability Company TAX ID 78.932.860-9 Address Miraflores N° 383, 12 floor Santiago, Chile Phone (562) 2366 3800 Subscribed and paid-in capital (Th$) 106,817,990 302 Enersis’ stake (Direct and indirect) 60.74% GASODUCTO ATACAMA ARGENTINA Company name Gasoducto Atacama Argentina S.A. Type of society Limited Liability Company TAX ID 78,952,420-3 Teléfono (562) 2366 3800 Subscribed and paid-in capital (Th$) 14,255,421 Corporate purpose Transportation, trading and distribution of natural gas, through its own means or together with other parties within Chile, especially in the towns of Mejillones and Paposo in the 2nd Region, including the construction, location and exploitation of gas pipelines and other activities related directly or indirectly to it. 2015 Annual Report Enersis Core business Gas transportation. Regular Directors Juan Oliva Vásquez Alex Díaz Sanzana Ricardo Santibañez Zamorano Senior Executives Valter Moro Executive Officer Business relations The company has no commercial relations with Enersis. Enersis stake (Direct and indirect) 60.74% GENERALIMA S.A.C. Company name Generalima S.A.C. Type of society Limited Liability Company Address Jr, Teniente César López Rojas 201, Maranga, San Miguel Lima, Peru Subscribed and paid-in capital (Th$) 30,533,666 Corporate purpose To make investments, in general, in other companies, preferably in those dedicated to the exploitation of natural resources, and very specially, in those linked to distribution, transmission and generation of electricity. Likewise, it may make investments in capital of any kind of movable property, including shares, bonds and any other kind of securities, as well as administration of said investments within the limits set by the Board and the General Shareholders’ Meeting. The activities included in this corporate purpose may be developed in Peru or abroad. Core business Investment Company. Senior Executives Úrsula de la Mata Torres Executive Officer Business relations The company has no commercial relations with Enersis. Enersis’ stake (Direct and indirect) 100%- No variation. Proportion on Enersis’ Assets. 0,30% GENERANDES PERÚ Company name Generandes Perú S.A. Type of society Publicly Traded Company Address Avda, Víctor Andrés Belaúnde 147, Edificio Real 4, piso 7, San Isidro Lima, Peru Phone (511) 215 6300 Subscribed and paid-in capital (Th$) 312,948,407 Corporate purpose The company has the purpose to develop activities related to electricity generation, directly, or through companies created for that purpose Core business Investment Company. Regular Directors Carlos Temboury Molina (Chairman) Francisco José Pérez Thoden Van Velzen Paolo Giovanni Pescarmona Daniel Abramovich Ackerman Alternate Directors Guillermo Lozada Pozo Carlos Rosas Cedillo Carlos Sedano Tarancón Senior Executives Francisco Pérez Thoden Van Velzen Executive Officer Business relations The company has no commercial relations with Enersis. Enersis’ stake (Direct and indirect) 75.59% GNL CHILE Company name GNL Chile S.A. Type of Society Limited Liability Company TAX ID 76,418,940-K Address Rosario Norte 530, office 1303, Las Condes Santiago, Chile Phone (562) 2892 8000 Subscribed and paid-in capital (Th$) 2,147,839 Corporate purpose The company purpose is to a) contract the services of the liquefied natural gas (LNG) regasification company GNL Quintero S.A. and use all the natural gas and LNG storage, processing, re-gasification and delivery capacity of its re-gasification terminal, including its expansions if any and any other matter stated in the contract that the Company signs to use of the re-gasification terminal; b) import LNG under the delivered on ship (DES) mode from LNG suppliers according to LNG purchase agreements; c) the sale and delivery of natural gas according to contracts signed by the company with its customers; d) manage and coordinate the programming and nominations of LNG loads, as well as the delivery of natural gas among the different customers; e) comply with all its obligations and demand compliance with all its rights according to the contracts mentioned above and coordinate all activities included in such contracts, and in general carry out any type of act or contract that may be necessary, useful or convenient for meeting its purposes. Core business Import and trading of natural gas. Regular Directors Andres Alonso Rivas Alex Díaz Sanzana Klaus Lürhmann Poblete Alternate Directors Luis Arancibia Yiacometti Yasna Ross Humberto Espejo Paluz Senior Executives Alejandro Palma Rioseco Executive Officer Business relations The company has no commercial relations with Enersis. Enersis stake (Direct and indirect) 19.99% - No variation GNL QUINTERO Company name GNL Quintero S.A. Type of society Limited Liability Company TAX ID 76,788,080-4 Address Rosario Norte 532, office 1604, Las Condes Santiago, Chile Phone (562) 2499 0900 Subscribed and paid-in capital (Th$) 80,953,329 Corporate purpose The development, financing, design, engineering, supply, construction, start up, operation and maintenance of an liquefied natural gas (“LNG”) storage and re-gasification plant and its corresponding sea terminal for loading and unloading LNG and its expansions, if any, including the installations and connections necessary to deliver the LNG through a truck- loading yard and/ or one or more LNG pipeline delivery points (the “Re-gasification Terminal”); and any other activity leading or related to such purpose, including, but not limited to, the provision of management and administrative services of all commercial agreements needed to receive LNG or to deliver it to customers, re-gasification of LNG, delivery of natural gas and sale of services and storage, processing, re-gasification-loading and unloading at the LNG Regasification and delivery Terminal (the “Project”) and its expansions, if any, and b) offer general management and administrative consulting in general necessary for the correct Identification of the Subsidiaries and Associates Companies 303 operation of the company, the Trading Company according to how it is defined in numeral thirteen four of article thirteen of the social agreement and that Is currently known as GNL Chile S.A. The company may carry out all kinds of acts or contracts that are necessary, useful or convenient for meeting this purpose. Core business Unloading, storing and re-gasifying liquefied natural gas and natural gas. Core business Production, transportation and storage of all kinds of energy and fuels. Regular Directors Alex Díaz Sanzana Juan Oliva Vásquez Ricardo Santibañez Zamorano Senior executives Valter Moro Executive Officer Corporate purpose Offer services in engineering, studies, projects, technical consulting, management, inspection and supervision of works supply, inspection and reception of materials and equipment for laboratories, appraisals, commercial representation of local and foreign engineering companies, as well as other services that the legal powers permit in the practice of the professions of engineering, architecture, agronomy, geology and meteorology in all their Regular Directors Marco Arróspide Rivera Víctor Turpaud Fernández Juan Oliva Vásquez José Antonio de las Heras Sultán Al Bartami Alternate Directors Ricardo Santibañez Zamorano Jorge Beytía Moure Rafael González Rodríguez Hilal Al Kharusi Senior Executives Antonio Bacigalupo Gittins Executive Officer Business relations The company has no commercial relations with Enersis. Enersis stake (Direct and indirect) 12.00% - No variation GNL NORTE Company name GNL Norte S.A. Type of society Limited Liability Company TAX ID 76,676,750-8 Address Miraflores N° 383, 12 floor Santiago, Chile. Subscribed and paid-in capital (Th$) 1,000 Corporate purpose The corporate purpose of the company is the production, transportation, distribution, storage and supply of any kind of energy and fuel, to the effect of which it may obtain, purchase and benefit from the respective concessions and grants. The purpose shall also be to acquire, design, construct, maintain and exploit all types of civil and infrastructure works related to energy and fuel, especially those related to its maritime reception, reception, processing and transportation. For a better and proper compliance with its corporate purpose, the company may constitute, purchase, enter as partner, shareholder or in any other direct way or with third parties or subsidiary companies, societies, institutions of any kind or nature, both in Chile and abroad, and in general, celebrate any acts or agreements and develop any activity related directly or indirectly with said purposes. Business relations The company has no commercial relations with Enersis. specialties. Core business Engineering services. Enersis’ stake (Direct and indirect) 60.74% HIDROINVEST Company name Hidroinvest S.A. Type of society Publicly Traded Company Address Avda, España 3301 Buenos Aires, Argentina Phone (5411) 4307 3040 Subscribed and paid-in capital (Th$) 3,031,821 Corporate purpose Acquire and maintain a majority shareholding in Hidroeléctrica Alicura S.A. and/or Hidroeléctrica El Chocón S.A. and/or Hidroeléctrica Cerro Colorado S.A. (“the concessionaire companies”) created by National Executive Power decree 287/93 and manage such investments. Core business Investment Company Regular Directors Mauricio Bezzeccheri (Chairman) Gaetano Salierno (Vice Chairman) María Inés Justo Alternate Directors Fernando Claudio Antognazza Rodrigo Quesada Business Relations The company has no commercial relations with Enersis. Enersis stake (Direct and indirect) 57.64% - No variation INGENDESA DO BRASIL (company in liquidation) Company name Ingendesa do Brasil Ltda. Type of society Limited Liability Company Address Praça Leoni Ramos, Nº 1 Parte, São Domingos Niterói - RJ, Brazil Subscribed and paid-in capital (Th$) 89,606 Representative Bruno César Vasconcelos Business relations The company has no commercial relations with Enersis. Enersis stake (Direct and indirect) 61.48% - No variation INVERSIONES DISTRILIMA Company name Inversiones Distrilima S.A.C. Type of society Limited Liability Company Address Jr, Teniente César López Rojas 201, Maranga, San Miguel Lima, Peru Phone (511) 561 1604 Subscribed and paid-in capital (Th$) 130,666,525 Corporate purpose Perform investments in other companies, most preferably in those Involved in the exploitation of natural resources, and especially those related to the distribution, transmission and generation of electricity. In order to perform according to its purpose and practice the activities related to it, the company may perform all actions and enter into all contracts that the Peruvian laws allow to corporations. The company may also make equity investments in any kind of property including stocks, bonds and any other class of transferable securities, as well as the administration of such investments within the limits set by the board and ordinary shareholders meeting. The activities that are considered within the purpose of the company may be carried out in Peru and abroad. Core business Investment Company. Directors The Ordinary shareholders meeting that met 03/29/2011 agreed to change the entity Into a Private Company without Board of Directors. Senior Executives Carlos Temboury Molina Executive Officer 304 2015 Annual Report Enersis Business relations The company has no commercial relations with Enersis. Enersis’ stake (Direct and indirect) 99.73% Proportion on Enersis’ Assets 2.03% INVERSIONES GASATACAMA HOLDING Company name Inversiones Gasatacama Holding Limitada Type of society Limited Liability Company TAX ID 76,014,570-K Address Miraflores N° 383, 12 floor Santiago, Chile Phone (562) 2366 3800 Company purpose The company purpose is the following: a) the direct or indirect participation through any kind of association in companies whose purpose include one or more of the following: i) the transportation of natural gas in any of its forms; ii) the generation, transmission, purchase, distribution and sale of electricity, and iii) financing the activities stated in i) and ii) above that are carried out by related third parties, and b) the perception and investment of the assets invested, including lucrative activities related to the ones mentioned. Core business Investment Company Subscribed and paid-in-capital (Th$) 202,362,770 Regular Directors Vacant position Ramiro Alfonsin Balza José Venegas Maluenda Sebastian Fernández Cox Alternate Directors Alejandro García Chacón Fernando Prieto Plaza Paulo Domingues dos Santos Fernando Gardeweg Ried Senior Executives Eduardo Soto Trincado Executive Officer Commercial Relations The company has no commercial relations with Enersis. Enersis’ stake (Direct and indirect) 60.74% INVERSORA CODENSA S.A.S. Company name Inversora Codensa S.A.S. Type of society Simplified Joint Stock Company Address Carrera 11 N°82-76, Piso 4 Bogotá, Colombia Phone (571) 601 6060 Pablo Vera Pinto Roberto José Fagan Alternate Directors Danierl Martini María Inés Justo Borga Fernando Claudio Antognazza Raúl Angel Rodríguez Gerardo Zmijak Jorge Peña Business relations The company has no commercial relations with Enersis. Subscribed and paid-in capital (Th$) 1,118 Corporate purpose Investment in residential public electric utility services, especially the acquisition of shares in any public electric utility or in any other company that also invests in utilities whose main purpose is residential electricity service according to the definition in Law 142 of 1994, or in any other company that also invests in utilities whose main purpose is residential public electric utility Enersis’ stake (Direct and indirect) 57.14% LUZ ANDES Company name Luz Andes Limitada Type of society Limited Liability Company services. Core business Investment Company. Legal Representative David Felipe Acosta Correa Business relations The company has no commercial relations with Enersis. Enersis’ stake (Direct and indirect) 48.39% - No variation INVERSORA DOCK SUD S.A. Company name Inversora Dock Sud S.A. Type of society Limited Liability Company Address Avenida Debenedetti 1636 Dock Sud Avellaneda Phone 4229-1000 Subscribed and paid-in capital (Th$) 43,801,868 Corporate purpose The corporate purpose of the company is the participation in companies of any nature, by means of creating shareholding companies, transitory company ventures, collaboration groups, joint ventures, consortiums and any other kind of association, and in general, the purchase, sale and negotiation of titles, shares and all other kind of securities and credit papers in any of the systems or modes created or to be created. Core business Investment Company Regular Directors Mauricio Bezzeccheri Gaetano Salierno Héctor Martín Mandarano Alejandro Héctor Fernández TAX ID 96,800,460-3 Address Santa Rosa 76 Santiago, Chile Phone (56 2) 2634 6310 Subscribed and paid-in capital (Th$) 1,224 Corporate purpose Distribution and sale of electricity, and sale of home, sports, entertainment and computers appliances. Core business Electricity distribution. Pooled administration Claudio Inzunza Diaz Jaime Manriquez Kemp Senior Executives Claudio Inzunza Díaz Executive Officer Business relations (i) Contract for services provision by Enersis: Procurement Integral Services: Comprehensive Supply Service, Materials Procurement Management, Contracting of Works, Services and Consultancies, Reception, Storage and Supply of Recurrent and Non recurrent Materials, Sales Agent. Price: Mark-up over average price of consumed materials. (ii) Contract for services provision by Enersis: Provision of internal audit and compliance control services. Price: UF amount per worked hour that Enersis’ staff dedicates to contracted services. (iii) Administration service provision agreement by Enersis. Price: Monthly amount expressed in UF. Enersis’ stake (Direct and indirect) 99.09% - No variation Identification of the Subsidiaries and Associates Companies 305 PEHUENCHE Company name Empresa Eléctrica Pehuenche S.A. Type of society Publicly Traded Company TAX ID 96,504,980-0 Address Santa Rosa 76 Santiago, Chile Phone (562) 2630 9000 Subscribed and paid-in capital (Th$) 200,319,021 Corporate purpose Generation, transmission, distribution and supply of electricity, for which it may acquire and use the respective concessions, permits and rights. Core business Electricity generation. Board of Directors Ramiro Alfonsín Balza (Chairman) Luis Ignacio Qiñones Sotomayor (Vice Chairman) Jorge Burlando Bonino Claudio Helfmann Soto Fernando Vallejos Reyes Senior Executives Carlo Carvallo Artigas Executive Officer Business relations Services provision agreement by Enersis on Communication, Global Services, Human Resources’ Management and Equity Management. Price: Monthly amount expressed in UF. Enersis’ stake (Direct and indirect) 55.57% - No variation PROGAS Company name Progas S.A. Type of society Limited Liability Company TAX ID 77,625,850-4 Address Avenida Isidora Goyenechea 3365, 8th floor Santiago, Chile Phone (562) 2366 3800 Subscribed and paid-in capital (Th$) 1,154 Corporate purpose Develop the following businesses in the 1st, 2nd and 3rd regions of the country, the acquisition, production, storage, transportation, distribution, transformation and trading of natural gas and other oil derivatives and fuels in general, the supply of services, manufacture, trading of equipment and materials, and carrying out works related to the above purposes or those necessary for their execution and development, any other activity necessary or leading to comply with the aforementioned purposes. Alberto Rica José Luis Marinelli Senior Executives Francisco Cerar Gerente General Core business Gas supply Board of Directors Alex Díaz Sanzana Juan Oliva Vásquez Ricardo Santibañez Zamorano Senior Executives Valter Moro Executive Officer Business relations The company has no commercial relations with Enersis. Enersis’ stake (Direct and indirect) 60.74% SACME Company name Sacme S.A. Type of society Limited Liability Company Address Avda, España 3251 Buenos Aires, Argentina Phone (5411) 4361 5107 Subscribed and paid-in capital (Argentinean Pesos) 1,569 Corporate purpose Conduct, supervise and control the operation of the electricity generation, transmission and sub transmission system of Capital Federal and Gran Buenos Aires, and the interconnections with the Argentine Interconnection System (SADI in its Spanish acronym). Represent the companies Distribuidora Edenor S.A. and Edesur S.A. in terms of operations, before the wholesale market administrator, Compañía Administradora del Mercado Mayorista Eléctrico (CAMMESA in its Spanish acronym. In general, adopt all actions necessary to allow it to carry out the administration of the business correctly, as being constituted for this purpose by the concessionaire companies of the electricity distribution and trading in Capital Federal and Gran Buenos Aires, all in accordance with the international public tender for the sale of Class A shares in Edenor S.A. and Edesur S.A. and applicable regulations. Core business Conduction, supervision and control of operations of part of the Argentine electricity system. Regular Directors Roberto De Antoni Leandro Ostuni Daniel Flaks Eduardo Maggi Directores suplentes Fabio Canosa Leonardo Lintura Business relations The company has no commercial relations with Enersis. Enersis’ stake (Direct and indirect) 35.81% SERVICIOS INFORMÁTICOS E INMOBILIARIOS LTDA. Company name Servicios Informáticos e Inmobiliarios Limitada Type of society Limited Liability Company TAX ID 76,107,186-6 Address Santa Rosa 76, piso 9 Santiago, Chile Phone (562) 2353 4606 Subscribed and paid-in capital (Th$) 61,948,674 Corporate purpose The purpose will be to carry out on its own or through third parties, the following activities: 1) Consultancy services provision in matters related to information technology and computing, telecommunications and data transmission; management, consultancy, advisory and administration of contracts, own or third parties’ ones, related to said matters; establishing, managing and exploiting data base centres; creation, development, design, management, operation, marketing, purchase, sale, import, and export of all kinds of software; contracts’ management and administration and projects’ development and execution, 2) To acquire and sell all kinds of corporeal or incorporeal property related to its object; to provide services and to obtain representations for the best compliance of its purpose; organise, constitute, participate and be part of all kinds of companies, associations or joint accounts; to make all kinds of money, service and property contributions, whichever its sort and to sign service and consultancy provision agreements, either in Chile or abroad, 3) Administration and exploitation of own or third parties’ businesses and, in general, development of any activity connected or supplementary to the aforementioned purposes, and those the partners deem mutually convenient, 4) Purchase, alienation, parcelling, subdivision, lot division, sale and exploitation at any title of all kinds of real estate, on its own account or through third parties, to invest the corporate funds in all kinds of property, immovable or movable, corporeal or incorporeal and rights in societies; to manage them and to receive its fruits and rents. Core business Consultancy services in information technology 306 2015 Annual Report Enersis and computing, telecommunications, data transmission, purchase and alienation of all kinds of property within the corporate purpose; real estate services. Senior Executives Tomás Blásquez de la Cruz Executive Officer and Trustee Administrator Francisco Javier Galán Ángel Barrios Romo Andrés Salas Estrades Business relations (i) Professional service agreement for ICT’s Management. Price: Operation cost plus margin. (ii) Agreement for the use of Estadio Lo Sáez located at Carlos Medina 858, Independencia. Price: Monthly amount expressed in UF, per ICT’s worker. (iii) Contract for services provision by Enersis: Supply Services. Management of Materials’ Procurement and Works Contracting, Services and Consultancy. Price: Directly related to associated staff’s costs and to operational and maintenance expenses. Every year the annual value for the next period is determined annually, introducing the proper improvements and efficiencies. (iv) Contract for services provision by Enersis: Provision of internal audit and compliance control services. Price: UF amount per worked hour that Enersis’ staff dedicates to contracted services. (v) Commercial current accounts. (vi) Administration services’ provision by Enersis. Price: Monthly amount expressed in UF. Enersis’ stake (Direct and indirect) 100.00% Proportion on Enersis’ Assets 0.13% SOCIEDAD PORTUARIA CENTRAL CARTAGENA Company name Sociedad Portuaria Central Cartagena S.A. Type of society Publicly Traded Compnay Address Carrera 13 A Nº 93-,66, 2nd floor Bogotá, D.C. Colombia Subscribed and paid-in capital (Th$) 1,297 Corporate purpose The company’s main purpose is the following: 1. Investment, construction and maintenance of docks and private and public ports, their management and operations and the development and operation of a multipurpose port, is according to the law, among others. Regular Directors Bruno Riga Juan Manuel Pardo Leonardo López Vergara Alternate Directors Fernando Gutiérrez Medina Alba Lucía Salcedo Luís Fernando Salamanca Senior Executives Fernando Gutiérrez Medina Executive Officer Business relations The company has no commercial relations with Enersis. Enersis’ stake (Direct and indirect) 38.19% SOUTHERN CONE POWER ARGENTINA Company name Southern Cone Power Argentina S.A. Type of society Publicly Traded Company Address Avda, España 3301 Buenos Aires, Argentina Phone (54 11) 4307 3040 Subscribed and paid-in capital (Th$) 23,570 Corporate purpose Wholesale trading of electricity generated by third parties and to be consumed by third parties. Likewise, the company may also hold participations in companies dedicated to electricity generation. Core business Investment Company Regular Directors Mauricio Bezzeccheri (Chairman) Gaetano Salierno (Vice Chairman) María Inés Justo Alternate Directors Fernando Claudio Antognazza Business relations The company has no commercial relations with Enersis. Enersis’ stake (Direct and indirect) 60.01% TERMOELÉCTRICA JOSÉ DE SAN MARTÍN Company name Termoeléctrica José de San Martín S.A. Type of society Publicly Traded Company Address Elvia Rawson de Dellepiane 150, 9th floor Buenos Aires, Argentina Phone (54 11) 4117-1011/1041 Subscribed and paid-in capital (Th$) 27,407 Corporate purpose The generation of electricity and its block trading, and particularly the management of the equipment, construction, operation and maintenance of a thermal plant in accordance with the “Definitive agreement for the management and operation of the projects for the re-adaptation of the MEM in the terms of Resolution SE N° 1427/2004”, approved by Resolution SE N° 1193/2005. Core business Electricity generation. Managment services (purchase of equipment, construction, operation and maintenance of a thermal plant). Regular Directors José María Vázquez Claudio O, Majul Roberto Fagan Fernando Claudio Antognazza Patricio Testorelli (resigned) Martín Genesio Gerardo Carlos Paz José Manuel Tierno Jorge Ravlich Alternate Directors Adrián Gustavo Salvatore Leonardo Pablo Katz María Inés Justo Fernando Carlos Luis Boggini Iván Durontó Emiliano Chaparro Luís Agustín León Longobardo Sergio Raúl Sánchez Rodrigo García Senior Executives Ricardo Arakaki Executive Officer Business relations The company has no commercial relations with Enersis. Enersis’ stake (Direct and indirect) 10.38% - no variation TERMOELÉCTRICA MANUEL BELGRANO Company name Termoeléctrica Manuel Belgrano S.A. Type of society Publicly Traded Company Address Suipacha 268, piso 12 Buenos Aires, Argentina Phone (5411) 3 221 7950 Subscribed and paid-in capital (Th$) 27,407 Corporate purpose The company’s purpose is the generation of electricity and its block trading, and particularly the management of the equipment, construction, operation and maintenance of a thermal plant in accordance with the “Definitive agreement for the management and operation of the projects for the re-adaptation of the MEM in the terms of Resolution SE N° 1427/2004”, approved by Resolution SE N° 1193/2005. Identification of the Subsidiaries and Associates Companies 307 Core business Managment services (purchase of equipment, construction, operation and maintenance of a thermal power plant). Electricity Generation. Maria Inés Justo Maria Victoria Ramírez Senior Executives Sandro Ariel Rollan Executive Officer Regular Directors Martín Genesio Emiliano Chaparro Adrián Gustavo Salvatore José María Vásquez Fernando Claudio Antognazza Roberto José Fagan Gerardo Carlos Paz José Manuel Tierno Jorge Ravlich Alternate Directors Rodrigo Leonardo García María Inés Justo Fernando Carlos Luis Boggini Leonardo Marinaro Leonardo Pablo Katz Guillermo Giraudo Julián Mc Loughlin Luis Agustín León Longobardo Sergio Raúl Sánchez Senior Executives Gabriel Omar Ures Executive Officer Business relations The company has no commercial relations with Enersis. Enersis’ stake (Direct and indirect) 10.38% - no variation TESA Company name Transportadora de Energía S.A. Type of society Publicly Traded Company Address Bartolomé Mitre 797, 11th floor Buenos Aires, Argentina Phone (5411) 4394 1161 Subscribed and paid-in-capital (Th$) 5,481 Corporate purpose High tension electricity transmission services’ provision, linked to both national and international electrical systems, for which purpose it may participate in national and international tenders, become a high tension electricity transmission utilities concessionaire, locally or abroad, and carry out all activities deemed necessary to fulfill its purpose. Core business Electricity transmission. Directors Juan Carlos Blanco (Vice Chairman) Fernando Boggini Maurizio Bezzeccheri (Chairman) Alternate Directors Fernando Antognazza Business relations The company has no commercial relations with Enersis. Enersis’ stake (Direct and indirect) 84.38% TRANSQUILLOTA Company name Transmisora Eléctrica de Quillota Ltda. Type of society Limited Liability Company TAX ID 77,017,930-0 Address Route 60, km 25, Lo Venecia, District Quillota. Valparaíso Region, Chile Phone (562) 2630 9000 Subscribed and paid-in capital (Th$) 4,404,446 Corporate purpose Transmission, distribution and supply of electricity, on its own account or through third parties. Core business Electricity transmission. Regular Representatives Vacant position Ricardo Santibañez Zamorano Juan Eduardo Vásquez Moya Mauricio Cabello Alternate Representatives Ricardo Sáez Sánchez Vacant position Italo Cuneo Business relations The company has no commercial relations with Enersis. Enersis’ stake (Direct and indirect) 30.75% - No variation YACYLEC S.A. Company name Yacylec S.A. Type of society Limited Liability Company Address Bartolomé Mitre 797, 11º floor; Buenos Aires, Argentina Phone (5411) 4587 4322/4585 Subscribed and paid-in capital (Th$) 1,096,262 Corporate purpose Construction, operation and maintenance of the first electrical link between Yacyretá Hydroelectric Plant and the Resistance’s Transformation Station, and provision of electricity transmission services, including the exploitation under concession as independent transmitter. Core business Electricity transmission. Regular Directors Gaetano Salierno (Chairman) Maurizio Bezzeccheri Maria Inés Justo Gerardo Ferreyra Osvaldo Acosta Guillermo Díaz Eduardo Albarracín Miguel Angel Sosa Luis Juan B. Piatti Juan Manuel Pereyra Sandro Ariel Rollan Marisa Varela Jorge Neira Toba Alternate Directors Carlos Bergoglio Maria Inés Justo Fernando Antognazza Gianfranco Catrini Massimo Villa Roberto Leonardo Maffioli Darío Ballaré Fernando Boggini Robert Ortega Alberto E. Verra Ejecutivos principales Sandro Ariel Rollan Executive Officer Business relations The company has no commercial relations with Enersis. Enersis’ stake (Direct and indirect) 22.22% Proportion on Enersis’ Assets 0.02% Notes: 1. There are no acts or agreements signed by Enersis S.A. with its subsidiaries or associated companies that could significantly influence Enersis S.A.’s operations and results. 2. With regards to the business relations, future relations planned with subsidiaries or associated companies fall within the company’s corporate purpose, especially continuing to provide its subsidiaries and associated companies with the necessary financial resources for their businesses’ development and, additionally, to provide its subsidiaries with management, financial advisory, business, technical, legal, audit services and, in general, services of any kind deemed necessary for their best performance, notwithstanding which, it is not foreseen that any of these connections would significantly influence Enersis S.A.’s operations and results. 308 2015 Annual Report Enersis  Identification of the Subsidiaries and Associates Companies 309 Declaration of Responsibility Statement of Responsibility The Directors of Enersis Américas S.A. (formerly Enersis S.A.) and its Executive Officer, signatories of this statement, are responsible under oath of the veracity of the information provided in this Annual Report, in compliance with the General Norm N°30, issued by the Superintendency of Securities and Insurances. Francisco de Borja Acha Besga CHAIRMAN DNI: 05-263174-S Francesco Starace , VICECHAIRMAN Pasaporte: YA 5358349 Hernan Guillermo Somerville Senn Director Rut: 4,132,185-7 Alberto De Paoli Director Pasaporte: YA 4226864 Francesca Di Carlo Director Pasaporte: AA 2224406 Rafael Fernández Morandé Director Rut: 6,429,250-1 Herman Chadwick Piñera Director Rut: 4,975,992-4 Luca D’Agnese Chief Executive Officer Rut: 24,910,349-7 Consolidated Financial Statements 316 2015 Annual Report Enersis 317 Consolidated Financial Statements318 2015 Annual Report Enersis Report of Independent Registered Public Accounting Firm 319 Consolidated Financial Statements320 2015 Annual Report Enersis 321 Consolidated Financial StatementsConsolidated Statements of Financial Position At December 31, 2015 and 2014 (In thousands of Chilean pesos) ASSETS CURRENT ASSETS Cash and cash equivalents Other current financial assets Other current non-financial assets Trade and other current receivables Current accounts receivable from related companies Inventories Current tax assets Total current assets other than assets or groups of assets for disposal classified as held for sale or as held for distribution to owners  Non-current assets or disposal groups held for sale or for distribution to owners TOTAL CURRENT ASSETS NON-CURRENT ASSETS Other non-current financial assets Other non-current non-financial assets Trade and other non-current receivables Non-current accounts receivable from related companies Investments accounted for using the equity method Intangible assets other than goodwill Goodwill Property, plant and equipment Investment property Deferred tax assets TOTAL NON-CURRENT ASSETS Note 12-31-2015 ThCh$ 12-31-2014 ThCh$ 8 9 10 11 12 13 9 10 11 14 15 16 17 18 19 1,185,163,344 68,262,446 101,989,057 1,088,131,567 3,566,930 95,057,897 47,454,588 1,704,745,491 99,455,403 175,098,112 1,681,686,903 18,441,340 133,520,154 110,572,522 2,589,625,829 3,923,519,925 5,323,935,881 7,978,963 7,913,561,710 3,931,498,888 489,528,204 77,562,708 398,695,864 355,485 30,960,445 981,399,272 444,199,047 5,003,566,633 - 109,325,023 7,535,592,681 530,821,520 77,806,180 291,641,675 486,605 73,633,610 1,168,212,056 1,410,853,627 8,234,215,719 8,514,562 193,637,874 11,989,823,428 TOTAL ASSETS 15,449,154,391 15,921,322,316 The accompanying notes are an integral part of these consolidated financial statements 322 2015 Annual Report Enersis   LIABILITIES AND EQUITY CURRENT LIABILITIES Other current financial liabilities Trade and other current payables Current accounts payable to related companies Other current provisions Current tax liabilities Other current non-financial liabilities Total current liabilities other than those associated with groups of assets for disposal classified as held for sale Liabilities associated with disposal groups held for sale or for distribution to owners TOTAL CURRENT LIABILITIES Nota 12-31-2015 ThCh$ 12-31-2014 ThCh$ 20 23 11 24 13 687,873,508 1,452,824,207 109,897,508 127,299,176 142,607,960 39,226,339 421,805,679 2,288,876,950 143,680,622 90,222,684 115,472,313 129,275,589 2,559,728,698 3,189,333,837 5 1,945,652,102 5,488,147 4,505,380,800 3,194,821,984 NON-CURRENT LIABILITIES Other non-current financial liabilities Trade and other non-current payables Other long-term provisions Deferred tax liabilities Non-current provisions for employee benefits Other non-current non-financial liabilities TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES EQUITY Issued capital Retained earnings Other reserves Equity attributable to shareholders of Enersis Américas Non-controlling interests 20 23 24 19 25 1,847,296,592 283,544,254 183,848,284 231,904,615 187,270,474 20,100,992 2,753,965,211 3,289,097,528 159,385,521 197,243,841 478,361,484 269,930,412 53,262,800 4,447,281,586 7,259,346,011 7,642,103,570 26.1 26.5 26.6 5,804,447,986 3,380,661,523 (3,158,960,224) 6,026,149,285 2,163,659,095 5,804,447,986 3,051,734,445 (2,654,206,384) 6,201,976,047 2,077,242,699 TOTAL EQUITY 8,189,808,380 8,279,218,746 TOTAL LIABILITIES AND EQUITY 15,449,154,391 15,921,322,316 The accompanying notes are an integral part of these consolidated financial statements 323 Consolidated Financial Statements    Consolidated Statements of Comprehensive Income, by Nature  For the years ended December 31, 2015, 2014 and 2013 (In thousands of Chilean pesos) STATEMENTS OF PROFIT (LOSS) Revenues Other operating income Revenues and Other Operating Income Raw materials and consumables used Contribution Margin Other work performed by the entity and capitalized Employee benefits expenses Depreciation and amortization expense Impairment loss recognized in the period’s profit or loss Other expenses Operating Income Other gains (losses) Financial income Financial costs Share of profit (loss) of associates and joint ventures accounted for using the equity method Foreign currency exchange differences Profit (losses) from indexed assets and liabilities Income from continuing operations, before taxes Income tax expenses, continuing operations INCOME AFTER TAX FROM CONTINUING OPERATIONS Income after tax from discontinued operations NET INCOME Net income attributable to: Shareholders of Enersis Américas Non-controlling interests NET INCOME Basic earnings per share Basic earnings per share from continuing operations Basic earnings per share from discontinued operations Basic earnings per share Weighted average number of shares of common stock Diluted earnings per share Diluted earnings per share from continuing operations Diluted earnings per share from discontinued operations Diluted earnings per share Weighted average number of shares of common stock (*) See Note 5.1.II.iii Note 27 27 28 3 a) 3 d.1 29 30 30 31 32 33 33 14 33 33 34 5.1 c) 26.6 2015 ThCh$ 4,667,645,310 633,794,268 5,301,439,578 2014 (As adjusted) (*)ThCh$ 4,806,455,737 399,914,051 5,206,369,788 2013 (As adjusted) (*)ThCh$ 3,978,995,352 549,152,517 4,528,147,869 (2,777,201,512) 2,524,238,066 (2,631,669,436) 2,574,700,352 (2,090,267,302) 2,437,880,567 67,101,269 55,770,418 47,134,470 (487,698,147) (320,542,197) (39,811,756) (488,528,749) 1,254,758,486 (389,668,473) (350,742,750) (38,329,942) (463,729,264) 1,388,000,341 (345,568,196) (315,966,141) (66,664,976) (405,747,911) 1,351,067,813 (6,566,225) 294,770,272 (385,455,340) 876,554 251,121,762 (432,314,329) 4,642,268 246,615,814 (325,972,302) 3,332,971 2,560,023 979,875 128,238,047 (9,266,040) (18,493,594) (13,630,068) (28,534,786) (11,007,801) 1,279,812,171 (523,663,212) 756,148,959 388,320,526 1,144,469,485 1,178,120,689 (430,592,032) -747,528,657 281,941,071 1,029,469,728 1,237,790,881 (442,455,343) 795,335,538 318,065,208 1,113,400,746 661,586,917 482,882,568 1,144,469,485 610,157,869 419,311,859 1,029,469,728 658,514,150 454,886,596 1,113,400,746 Ch$/Share Ch$/Share Ch$/Share Thousands 8.35 5.13 13.48 49,092,772.76 8.25 4.18 12.43 49,092,772.76 9.49 5.08 14.56 45,218,860.05 Ch$/Share Ch$/Share Ch$/Share Thousands 8.35 5.13 13.48 49,092,772.76 8.25 4.18 12.43 49,092,772.76 9.49 5.08 14.56 45,218,860.05 324 2015 Annual Report Enersis         Consolidated Statements of Comprehensive Income, by Nature (continued) For the years ended December 31, 2015, 2014 and 2013 (In thousands of Chilean pesos) STATEMENTS OF COMPREHENSIVE INCOME Net Income Components of other comprehensive income that will not be reclassified subsequently to profit or loss, before taxes Gain (loss) from defined benefit plans Other comprehensive income that will not be reclassified subsequently to profit or loss Components of other comprehensive income that will be reclassified subsequently to profit or loss, before taxes Foreign currency translation gains (losses) Gains (losses) from available-for-sale financial assets Share of other comprehensive income from associates and joint ventures accounted for using the equity method Gains (losses) from cash flow hedge Adjustments from reclassification of cash flow hedges, transferred to profit or loss Other comprehensive income that will be reclassified subsequently to profit or loss Components of other comprehensive income, before taxes 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 Income tax related to components of other comprehensive income that will not be reclassified subsequently to profit or loss 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 Income tax related to available-for-sale financial assets Income tax related to components of other comprehensive income that will be reclassified subsequently to profit or loss Total Other Comprehensive Income Note 2015 ThCh$ 1,144,469,485 2014 (As adjusted) ThCh$ 1,029,469,728 2013 (As adjusted) ThCh$ 1,113,400,746 25.2.b (19,027,368) (36,681,734) 6,351,518 (19,027,368) (36,681,734) 6,351,518 (644,537,672) (442,864) 4,370,648 1,849 (76,723,893) (2,273) 14.1 (552,420) 13,476,871 8,367,223 (155,456,845) (138,993,868) (76,144,260) 17,215,453 (6,898,502) 55,283 (783,774,348) (128,043,002) (144,447,920) (802,801,716) (164,724,736) (138,096,402) 6,018,363 12,694,514 (2,603,231) 6,018,363 12,694,514 (2,603,231) 36,399,000 (291) 35,887,996 (1,462) 12,332,516 455 36,398,709 35,886,534 12,332,971 (760,384,644) (116,143,688) (128,366,662) TOTAL COMPREHENSIVE INCOME 384,084,841 913,326,040 985,034,084 Comprehensive income attributable to: Shareholders of Enersis Américas Non-controlling interests TOTAL COMPREHENSIVE INCOME 145,175,235 238,909,606 384,084,841 562,566,774 350,759,266 913,326,040 577,348,684 407,685,400 985,034,084 The accompanying notes are an integral part of these consolidated financial statements 325 Consolidated Financial StatementsConsolidated Statements of Changes in Equity For the years ended December 31, 2015, 2014 and 2013 (In thousands of Chilean pesos) Statements of Changes in Equity Issued Capital Share Premium 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 Available- for- Sale Financial Assets Remeasuring Miscellaneous Other Reserves Changes in Other Reserves Amounts recognized in other comprehensive income and accumulated in equity related to non-current assets or groups of assets for disposal classified as held for sale Other Reserves Retained Earnings Equity Attributable to Shareholders of Enersis Américas Non-controlling Interests Total Equity Equity at beginning of period 1/1/2015 Changes in equity Comprehensive income: Profit (loss) Other comprehensive income Comprehensive income Dividends Increase (decrease) from other changes Total changes in equity Equity at end of period 12/31/2015 5,804,447,986 - 35,154,874 (69,404,677) - 14,046 (2,619,970,627) - (2,654,206,384) 3,051,734,445 6,201,976,047 2,077,242,699 8,279,218,746 (442,819,275) (60,939,077) (12,152,091) (166,950) (334,289) - (516,411,682) (516,411,682) (243,972,962) (760,384,644) 661,586,917 661,586,917 482,882,568 1,144,469,485 145,175,235 238,909,606 384,084,841 (320,507,748) (320,507,748) (151,308,255) (471,816,003) - - 5,804,447,986 - - - (12,423,692) (455,242,967) (420,088,093) 121,503,052 60,563,975 (8,840,702) 12,152,091 - - (14,835) (8,231,102) (181,785) (8,565,391) (167,739) (2,628,536,018) (101,327,672) 11,657,842 (12,152,091) (494,249) (1,184,955) (1,679,204) (101,327,672) (504,753,840) 328,927,078 (175,826,762) 86,416,396 (89,410,366) (101,327,672)(3,158,960,224) 3,380,661,523 6,026,149,285 2,163,659,095 8,189,808,380 Statements of Changes in Equity Issued Capital Share Premium 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 Available- for- Sale Financial Assets Remeasuring Miscellaneous Other Reserves Changes in Other Reserves Amounts recognized in other comprehensive income and accumulated in equity related to non-current assets or groups of assets for disposal classified as held for sale Other Reserves Retained Earnings Equity Attributable to Shareholders of Enersis Américas Non-controlling Interests Total Equity Equity at beginning of period 1/1/2014 Changes in equity Comprehensive income: Profit (loss) Other comprehensive income Comprehensive income Dividends Increase (decrease) from other changes Increase (decrease) from changes in ownership interests in subsidiaries that do not result in loss of control Total changes in equity Equity at end of period 12/31/2014 5,669,280,725 158,759,648 (56,022,016) (3,086,726) - 11,811 (2,414,023,486) - (2,473,120,417) 2,813,634,297 6,168,554,253 2,338,910,608 8,507,464,861 29,929,142 (66,317,951) (19,023,003) 2,235 7,818,482 - (47,591,095) (47,591,095) (68,552,593) (116,143,688) 135,167,261 (158,759,648) - - 19,023,003 61,247,748 (177,630,735) - (36,764,054) (129,008,863) (306,639,598) 135,167,261 5,804,447,986 (158,759,648) - 91,176,890 35,154,874 (66,317,951) (69,404,677) - - 2,235 (205,947,141) 14,046 (2,619,970,627) - (181,085,967) 238,100,148 33,421,794 (261,667,909) (228,246,115) - (2,654,206,384) 3,051,734,445 6,201,976,047 2,077,242,699 8,279,218,746 610,157,869 610,157,869 419,311,859 1,029,469,728 562,566,774 350,759,266 913,326,040 (314,750,191) (314,750,191) (459,728,319) (774,478,510) 44,135,863 (57,307,530) (36,764,054) (23,689,993) (60,454,047) Statements of Changes in Equity Issued Capital Share Premium 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 Available- for- Sale Financial Assets Remeasuring Miscellaneous Other Reserves Changes in Other Reserves Amounts recognized in other comprehensive income and accumulated in equity related to non-current assets or groups of assets for disposal classified as held for sale Other Reserves Retained Earnings Equity Attributable to Shareholders of Enersis Américas Non-controlling Interests Total Equity Equity at beginning of period 1/1/2014 Changes in equity Comprehensive income: Profit (loss) Other comprehensive income Comprehensive income Issue of equity Dividends Increase (decrease) from other changes Increase (decrease) from changes in ownership interests in subsidiaries that do not result in loss of control Total changes in equity Equity at end of period 12/31/2014 2,824,882,835 158,759,648 (40,720,059) 27,594,028 - 13,647 (1,498,010,369) - (1,511,122,753) 2,421,278,841 3,893,798,571 3,064,408,474 6,958,207,045 (57,187,681) (30,680,754) 6,865,655 (1,836) (160,850) - (81,165,466) 2,844,397,890 1,460,503 - (1,460,503) - - (6,865,655) 658,514,150 658,514,150 454,886,596 1,113,400,746 (81,165,466) 577,348,684 (47,201,196) (128,366,662) 407,685,400 985,034,084 - 2,845,858,393 2,845,858,393 (273,024,349) (273,024,349) (387,641,111) (660,665,460) 67,150,086 6,865,655 72,555,238 (910,579) 71,644,659 41,885,724 (947,982,284) - (947,982,284) (744,631,576) (1,692,613,860) 2,844,397,890 5,669,280,725 - 158,759,648 (15,301,957) (56,022,016) (30,680,754) (3,086,726) - - (1,836) (916,013,117) 11,811 (2,414,023,486) (961,997,664) 392,355,456 2,274,755,682 (725,497,866) 1,549,257,816 - (2,473,120,417) 2,813,634,297 6,168,554,253 2,338,910,608 8,507,464,861 - 25,112,860 (238,878,483) - 74,015,741 (989,868,008) - - - - - 326 2015 Annual Report Enersis Statements of Changes in Equity Issued Capital Share Premium Reserve for Exchange Differences in Translation Reserve for Cash Flow Hedges Reserve for Gains and Losses for Defined Benefit Plans Equity at beginning of period 1/1/2015 5,804,447,986 - 35,154,874 (69,404,677) Reserve for Gains and Losses on Remeasuring Available- for- Sale Financial Assets 14,046 (2,619,970,627) Other Miscellaneous Reserves Changes in Other Reserves Amounts recognized in other comprehensive income and accumulated in equity related to non-current assets or groups of assets for disposal classified as held for sale Other Reserves Retained Earnings Equity Attributable to Shareholders of Enersis Américas Non-controlling Interests Total Equity - (2,654,206,384) 3,051,734,445 6,201,976,047 2,077,242,699 8,279,218,746 Changes in equity Comprehensive income: Profit (loss) Other comprehensive income Comprehensive income Dividends Increase (decrease) from other changes Total changes in equity Equity at end of period 12/31/2015 5,804,447,986 - - - - - (12,423,692) 121,503,052 12,152,091 (455,242,967) 60,563,975 (420,088,093) (8,840,702) (8,231,102) (14,835) (181,785) (8,565,391) (167,739) (2,628,536,018) (442,819,275) (60,939,077) (12,152,091) (166,950) (334,289) - 661,586,917 (516,411,682) 661,586,917 (516,411,682) 145,175,235 (320,507,748) (101,327,672) (494,249) (101,327,672) (175,826,762) (101,327,672)(3,158,960,224) 3,380,661,523 6,026,149,285 (320,507,748) (12,152,091) 328,927,078 11,657,842 (504,753,840) 482,882,568 1,144,469,485 (760,384,644) 384,084,841 (471,816,003) (1,679,204) (89,410,366) 2,163,659,095 8,189,808,380 (243,972,962) 238,909,606 (151,308,255) (1,184,955) 86,416,396 Reserve for Gains and Losses on Remeasuring Available- for- Sale Financial Assets 11,811 (2,414,023,486) Other Miscellaneous Reserves Changes in Other Reserves Amounts recognized in other comprehensive income and accumulated in equity related to non-current assets or groups of assets for disposal classified as held for sale Other Reserves Retained Earnings Equity Attributable to Shareholders of Enersis Américas Non-controlling Interests Total Equity - (2,473,120,417) 2,813,634,297 6,168,554,253 2,338,910,608 8,507,464,861 29,929,142 (66,317,951) (19,023,003) 2,235 7,818,482 - (47,591,095) 610,157,869 Statements of Changes in Equity Issued Capital Share Premium Reserve for Exchange Differences in Translation Reserve for Cash Flow Hedges Reserve for Gains and Losses for Defined Benefit Plans Equity at beginning of period 1/1/2014 5,669,280,725 158,759,648 (56,022,016) (3,086,726) - Changes in equity Comprehensive income: Profit (loss) Other comprehensive income Comprehensive income Dividends Increase (decrease) from changes in ownership interests in subsidiaries that do not result in loss of control Total changes in equity Increase (decrease) from other changes 135,167,261 (158,759,648) - - 19,023,003 Equity at end of period 12/31/2014 5,804,447,986 - 35,154,874 (69,404,677) 135,167,261 (158,759,648) 91,176,890 (66,317,951) 61,247,748 Statements of Changes in Equity Issued Capital Share Premium Reserve for Exchange Differences in Translation Reserve for Cash Flow Hedges Reserve for Gains and Losses for Defined Benefit Plans Equity at beginning of period 1/1/2014 2,824,882,835 158,759,648 (40,720,059) 27,594,028 - Changes in equity Comprehensive income: Profit (loss) Other comprehensive income Comprehensive income Issue of equity Dividends Increase (decrease) from changes in ownership interests in subsidiaries that do not result in loss of control Total changes in equity Increase (decrease) from other changes - (1,460,503) - - (6,865,655) 2,844,397,890 1,460,503 41,885,724 Equity at end of period 12/31/2014 5,669,280,725 158,759,648 (56,022,016) (3,086,726) 2,844,397,890 - (15,301,957) (30,680,754) - - - - - - - - 25,112,860 (238,878,483) 2,235 (205,947,141) 14,046 (2,619,970,627) Reserve for Gains and Losses on Remeasuring Available- for- Sale Financial Assets 13,647 (1,498,010,369) Other Miscellaneous Reserves - 74,015,741 (989,868,008) (1,836) (916,013,117) 11,811 (2,414,023,486) - - - - 44,135,863 (314,750,191) (57,307,530) 610,157,869 (47,591,095) 562,566,774 (314,750,191) (36,764,054) 419,311,859 1,029,469,728 (116,143,688) (68,552,593) 913,326,040 350,759,266 (774,478,510) (459,728,319) (60,454,047) (23,689,993) (177,630,735) - (36,764,054) (129,008,863) (306,639,598) (181,085,967) 33,421,794 - - (2,654,206,384) 3,051,734,445 6,201,976,047 238,100,148 (261,667,909) (228,246,115) 2,077,242,699 8,279,218,746 Changes in Other Reserves Amounts recognized in other comprehensive income and accumulated in equity related to non-current assets or groups of assets for disposal classified as held for sale Other Reserves Retained Earnings Equity Attributable to Shareholders of Enersis Américas Non-controlling Interests Total Equity - (1,511,122,753) 2,421,278,841 3,893,798,571 3,064,408,474 6,958,207,045 658,514,150 658,514,150 (81,165,466) 577,348,684 - 2,845,858,393 (273,024,349) 72,555,238 454,886,596 1,113,400,746 (128,366,662) (47,201,196) 985,034,084 407,685,400 2,845,858,393 (660,665,460) 71,644,659 (387,641,111) (910,579) 67,150,086 (273,024,349) 6,865,655 (947,982,284) - (947,982,284) (744,631,576) (1,692,613,860) (961,997,664) 392,355,456 2,274,755,682 - - (2,473,120,417) 2,813,634,297 6,168,554,253 (725,497,866) 1,549,257,816 2,338,910,608 8,507,464,861 327 (57,187,681) (30,680,754) 6,865,655 (1,836) (160,850) - (81,165,466) Consolidated Financial StatementsConsolidated Statements of Cash Flow, Direct For the years ended December 31, 2015, 2014 and 2013 (In thousands of Chilean pesos) Statements of Direct Cash Flow Note Cash flow from (used in) operating activities Types of collection from operating activities Collections from the sale of goods and services Collections from royalties, payments, commissions, and other income from ordinary activities Collections from premiums and services, annual payments, and other benefits from policies held Other collections from operating activities Types of payment in cash from operating activities Payments to suppliers for goods and services Payments to and on behalf of employees Payments on premiums and services, annual payments, and other obligations from policies held Other payments for operating activities Cash flows from operating activities Income taxes paid Other outflows of cash Net cash flows from operating activities Cash flow from (used in) investing activities January - December 2014 2013 2015 ThCh$ ThCh$ ThCh$ 8,983,646,820 7,786,425,908 6,946,352,718 40,395,210 53,736,441 92,757,838 24,800,978 20,348,278 74,183,266 593,726,467 793,806,980 503,343,750 (4,875,217,622) (554,559,784) (4,395,777,186) (482,784,407) (3,690,576,400) (448,354,032) (14,484,698) (15,147,534) (5,782,311) (1,572,807,177) (1,418,097,022) (1,176,355,154) (381,648,502) (428,343,722) (451,694,741) (250,354,851) (212,945,529) (216,129,742) 1,923,450,602 1,698,037,994 1,700,975,644 Cash flows from the loss of control of subsidiaries or other businesses Cash flows used to obtain control of subsidiaries or other businesses 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 Other payments to acquire stakes in joint ventures Loans from related companies Proceeds from the sale of property, plant and equipment Purchases of property, plant and equipment Purchases of intangible assets Proceeds from the sale of other long-term assets Purchases of other long-term assets Payments from future, forward, option and swap contracts Collections from future, forward, option and swap contracts Collections from related companies Dividends received Interest received Other inflows (outflows) of cash Net cash flows used in investing activities 8.e 8.c 6,639,653 40,861,571 - (37,654,762) - - 395,810,811 1,126,402,278 871,863,989 (353,112,647) (480,297,836) (1,433,536,193) (2,550,000) - 49,916 (1,090,624,099) (271,937,266) 1,729,727 - (6,888,344) 17,266,466 - 11,313,451 58,724,646 (3,315,000) - 167,486 (825,909,425) (260,500,759) 2,037,930 (2,952,035) (26,683,724) 16,957,654 - 13,567,998 93,410,873 (5,084,700) (4,844,706) 5,462,527 (603,413,832) (169,371,666) 1,987,002 (2,034,104) (3,485,915) 14,308,008 4,895,411 9,081,705 92,176,821 18,278,638 44,220,761 (1,891,436) (1,215,299,048) (299,686,990) (1,223,887,089) 328 2015 Annual Report Enersis Statements of Direct Cash Flow Note Cash flows from (used in) financing activities Proceeds from issuing shares Payments from changes in ownership interests in subsidiaries that do not result in loss of control Total proceeds from loans Proceeds from long-term loans Proceeds from short-term loans Loans to related companies Payment on borrowings Payments on financial lease liabilities Payments on loans to related companies Dividends paid Interest paid Other outflows of cash January - December 2014 2013 2015 ThCh$ ThCh$ ThCh$ - 8,783,766 1,130,817,519 (2,374,346) (385,132,160) - 475,558,223 105,645,839 369,912,384 - (614,937,402) (19,737,180) - (612,045,894) (266,756,065) (19,921,715) 774,199,941 740,518,825 33,681,116 - (622,496,486) (16,559,995) (17,236,440) (632,808,121) (246,769,836) (145,440,332) 530,735,256 487,162,501 43,572,755 693,084 (563,049,681) (9,388,183) - (482,046,152) (230,584,133) (40,412,354) Net cash flows from (used in) financing activities (1,060,214,379) (1,283,459,663) 336,765,356 Net increase (decrease) in cash and cash equivalents before effect of exchange rate changes (352,062,825) 114,891,341 813,853,911 Effect of exchange rate changes on cash and cash equivalents Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period (16,503,717) (23,287,179) (375,350,004) 98,387,624 1,704,775,193 1,606,387,569 1,329,425,189 1,704,775,193 (23,298,403) 790,555,508 815,832,061 1,606,387,569 8.d 8.d 329 Consolidated Financial Statements  Consolidated Financial Statements for the Year Ended December 31, 2015 and 2014 (In thousands of Chilean pesos) 1. The Group’s Activities and Financial Statements Enersis Américas S.A. (former Enersis S.A.) (hereinafter “the Parent Company” or “the Company”) and its subsidiaries comprise the Enersis Américas Group (hereinafter “Enersis Américas Group” or “the Group”). Enersis Américas S.A. is a publicly traded corporation with registered address and head office located at Avenida Santa Rosa, No. 76, in Santiago, Chile. The Company is 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 is registered with the Securities and Exchange Commission of the United States of America (hereinafter U.S. SEC). The Company’s shares have been listed on the New York Stock Exchange since 1993. Enersis Américas S.A. is a subsidiary of Enel Iberoamérica S.R.L., a company controlled by Enel S.p.A. (hereinafter Enel). The Company was initially created in 1981 under the corporate name of Compañía Chilena Metropolitana de Distribución Eléctrica S.A. Later on, the Company changed its by-laws and its name to Enersis S.A. effective August 1, 1988. On February 1, 2016, as part of the reorganization process carried out by the Group (See Notes 5.1 and 41), the Company by amending its by-laws, has changed its corporate name to Enersis Américas S.A. For tax purposes, the Company operates under Chilean tax identification number 94,271,000-3. As of December 31, 2015, the Group had 12,202 employees. During the 2015 fiscal year, the Group averaged a total of 12,348 employees. See Note 37 for additional information regarding employee distribution by category and geographic location. Enersis Américas’s corporate purpose consists of exploring for, developing, operating, generating, distributing, transmitting, transforming, and/or selling energy of any kind or form, whether in Chile or abroad, either directly or through other companies. It is also engaged in telecommunications activities, and it provides engineering consultation services in Chile and abroad. The Company’s corporate purpose also includes investing in, and managing, its investments in subsidiaries and associates which generate, transmit, distribute, or sell electricity, or whose corporate purpose includes any of the following: (i) Energy of any kind or form, (ii) Supplying public services, or services whose main component is energy, (iii) Telecommunications and information technology services, and (iv) Internet-based intermediation business. 330 2015 Annual Report Enersis Enersis Américas’s 2014 consolidated financial statements were approved by the Board of Directors at meeting held on April 29, 2015. The consolidated financial statements were then submitted to the consideration of a General Shareholders´ Meeting held on April 28, 2015, which finally approved the consolidated financial statements. These consolidated financial statements are presented in thousands of Chilean pesos (unless otherwise stated), as the Chilean peso is the functional currency of the Company. Foreign operations are incorporated in accordance with the accounting policies stated in Notes 2.6 and 3.n. 2. Basis of presentation of the consolidated financial statements 2.1 Accounting principles The December 31, 2015 consolidated financial statements of Enersis Américas, approved by the Company’s Board of Directors at its meeting held on February 26, 2016, have been prepared in accordance with the instructions and standards issued by SVS, wich comprise International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and specific instructions issued by the SVS. On October 17, 2014, through issuance of Official Resolution No. 856, the SVS instructed its supervised entities to recognize directly in equity the fluctuations in deferred tax assets and liabilities originated as a result of the direct effect of increasing the income tax rate as stated in Law 20,780. Such instructions from the SVS are the only exception from compliance with IFRS and the accounting effects deriving from this instruction were recognized at September 30, 2014 (See Note 3.p and 19.c). The application of Official Resolution No. 856 from the SVS has changed the financial statements preparation and presentation framework as used by Enersis Américas from the financial year 2014, as the previous framework (IFRS) is required to be adopted in an integral, explicit and unreserved manner. Although it consolidated as of December 31, 2015 and 2014 financial statements were prepared on the same basis of accounting (instructions and regulations issued by the SVS), the consolidated statements of comprehensive income and consolidated statements of changes in equity for the years ended on those dates, as regards the registration of differences of assets and liabilities for deferred taxes are not according to comparative explained in the preceding paragraphs. These consolidated financial statements present fairly the financial position of Enersis Américas and its subsidiaries as of December 31, 2015 and 2014, as well as the results of operations, the changes in equity, and the cash flows for the years ended December 31, 2015, 2014 and 2013. These consolidated financial statements voluntarily present figures for 2013 in the consolidated statement of comprehensive income, consolidated statement of cash flow, consolidated statement of changes in net equity and the related notes. 331 Consolidated Financial StatementsThese consolidated financial statements have been prepared under going concern assumptions on a historical cost basis except for, in accordance with IFRS, those assets and liabilities that are measured at fair value and those non-current assets and disposal groups held for sale, which are recognized at their carrying amount or fair value less cost of disposal, whichever is lower (see Note 3). These consolidated financial statements have been prepared from accounting records maintained by the Company and its subsidiaries. Each entity prepares its financial statements according to the accounting principles and standards in force in each country, so the necessary adjustments and reclassifications have been made in the consolidation process in order to present the consolidated financial statements in accordance with IFRS and SVS instructions. 2.2 New accounting pronouncements a) Accounting pronouncements effective from January 1, 2015: Standards, Interpretations and Amendments 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. Mandatory Application for: Annual periods beginning on or after July 1, 2014. Improvements to IFRS (Cycles 2010-2012 and 2011-2013) 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 amendments and improvements to standards, which came into effect on January 1, 2015, had no effect on the consolidated financial statements of Enersis Américas and its subsidiaries. b) Accounting pronouncements in effect from January 1, 2016 and subsequent periods: As of the date of issue of these consolidated financial statements, the following accounting pronouncements had been issued by the IASB, but their application was not yet mandatory: Standards, Interpretations and Amendments 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. 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. Mandatory Application for: Annual periods beginning on or after January 1, 2016. Annual periods beginning on or after January 1, 2016. Improvements to IFRS (Cycles 2012-2014) 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. 332 2015 Annual Report Enersis Standards, Interpretations and Amendments 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. Amendment to IAS 27: Equity Method in Separate Financial Statements This amendment 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 amendment 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. Mandatory Application for: Annual periods beginning on or after January 1, 2016. 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 improvements are designed to assist companies in applying professional judgment to determine what type of information to disclose 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 modifications, 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. 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). IFRS 16: Leases This new standard provides a definition of a lease contract and specifies the accounting treatment for the assets and liabilities originated under those contracts from both lessor and lessee perspective. Lessor accounting remains largely unchanged from its predecessor IAS 17, Leases. However, for lessee accounting, the new standard requires recognition of a right of use assets and a corresponding liability, similar to finance lease accounting under IAS 17, for most lease contracts. Annual periods beginning on or after January 1, 2018. Annual periods beginning on or after January 1, 2018. Annual periods beginning on or after January 1, 2019. The Group is assessing the impact of applying IFRS 9, IFRS 15 and IFRS 16 upon effective application. In Management’s opinion, the future application of the other standards and amendments is not expected to have a significant effect on the consolidated financial statements of Enersis Américas and its subsidiaries. 333 Consolidated Financial Statements2.3 Responsibility for the information, judgments and estimates provided The Company’s Board of Directors is responsible for the information contained in these consolidated financial statements and expressly states that all IFRS principles and standards, and the instructions of the SVS. In preparing the consolidated financial statements, certain judgments and estimates made by the Company’s Management have been used to quantify some of the assets, liabilities, income, expenses and commitments recognized in these consolidated financial statements. The most important areas were critical judgment was required are: • In a service concession agreement, the decision as to whether a grantor controls or regulates which services the operator should provide, to whom and at what price. These are essential factors when applying IFRIC 12 (see Note 3.d.1). • The identification of Cash Generating Units (CGU) for impairment testing (see Note 3.e). • The hierarchy of inputs 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 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 increases, 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 consolidated financial statements and could affect the balances of assets, liabilities, income and expenses recognized in the financial statements (see Appendix 7.2). • 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). 334 2015 Annual Report Enersis • The tax results of the various subsidiaries of the 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 consolidated financial statements (see Note 3.p). • 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 consolidated 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 of such judgment or estimation change in the corresponding future consolidated financial statements. 2.4 Subsidiaries Subsidiaries are defined as those entities controlled either, directly or indirectly, by Enersis Américas. Control is exercised if, and only if, the following conditions are met: Enersis Américas has i) power over the subsidiary; ii) exposure or rights to variable returns from these entities; and iii) the ability to use its power to influence the amount of these returns. Enersis Américas has power over its subsidiaries when it holds the majority of the substantive voting rights or, should that not be the case, when it has rights granting the practical ability to direct the entities’ relevant activities, that is, the activities that significantly affect the subsidiary’s results. The Group will reassess whether or not it controls a subsidiary if the facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. Appendix 1. “Enersis Américas Group Entities” to these consolidated financial statements describes the relationship of Enersis Américas with each of its subsidiaries. 2.4.1 Changes in the scope of consolidation On January 9, 2015, our subsidiary 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. The elimination of Sociedad Concesionaria Túnel El Melón S.A. from Enersis Américas Group’s scope of consolidation caused a decrease in the consolidated 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 subsidiary of Enersis Américas, 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$57,173,143, which was received in cash on the same date. 335 Consolidated Financial StatementsThe elimination of Maitenes S.A. and Aguas Santiago Poniente S.A. from the Enersis Américas Group’s scope of consolidation caused a decrease in the consolidated 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 entered the Enersis Américas Group’s scope of consolidation as a result of Endesa Chile S.A.’s acquisition of a 50% stake in that company on April 22, 2014 (see Note 6). Pursuant to this operation, the following companies became subsidiaries of the 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 into the Enersis Américas Group’s scope of consolidation caused an increase in the consolidated 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. As of December 31, 2015, GasAtacama’s assets and liabilities have been reclassified as assets held for distribution to owners. Likewise, its results of operations for the years 2015, 2014 and 2013 have been classified as discontinued operations (See note 3.k and 5.1). 2.4.2 Consolidated companies with an ownership interest of less than 50% Although the Group holds, directly or indirectly, 48.48% equity interest in the companies Comercializadora de Energía S.A. (Codensa) and Empresa Generadora de Energía Eléctrica S.A. (Emgesa), they are considered as subsidiaries since Enersis Américas exercises control over the entities through contracts or agreements with shareholders, or as a consequence of their structure, composition and shareholder classes. The Group holds 57.15% and 56.43% of the voting shares of Codensa and Emgesa, respectively. 2.4.3 Unconsolidated companies with an ownership interest of more than 50% Although the Enersis Américas Group holds more than a 50% equity interest in Centrales Hidroeléctricas de Aysén S.A. (Aysén), it is considered a “joint venture” since the Group, through contracts or agreements with shareholders, exercises joint control of the company. As of December 31, 2015, Aysén’s assets and liabilities have been reclassified as assets held for distribution to owners. Likewise, its results of operations for the years 2015, 2014 and 2013 have been reclassified as discontinued operations (See note 3.k and 5.1). 336 2015 Annual Report Enersis 2.5 Investments in associates and joint arrangements Associates are those in which Enersis Américas, 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 is not control or joint control over those policies. In general, significant influence is presumed to be those cases in which the Group has an ownership interest of more than 20% (see Note 3.i). Joint arrangements are defined as those entities in which the Group exercises control under an agreement with other shareholders and jointly with them, in other words, when decisions on 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 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 Américas does not have any joint arrangements that qualify as joint operations. Appendix 3. “Associated Companies and Joint Ventures” to these consolidated financial statements describes the relationship of Enersis Américas with each of these companies. 2.6 Basis of consolidation and business combinations The subsidiaries are consolidated and all their assets, liabilities, income, expenses, and cash flows are included in the consolidated financial statements once the adjustments and eliminations from intragroup transactions have been made. The comprehensive income of subsidiaries is included in the consolidated comprehensive income statement from the date when the parent company obtains control of the subsidiary and until the date on which it loses control of the subsidiary. The operations of the parent company and its subsidiaries have been consolidated under the following basic principles: 1. At the date the parent obtains control, the subsidiary’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 interests 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. 337 Consolidated Financial StatementsFor each business combination, the 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 all assets acquired and liabilities assumed at the acquisition date has not been completed, the 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 the management at that time. For business combinations achieved in stages, the fair value of the equity interest previously held in the acquired company’s equity is measured on the date of acquisition and any gain or loss is recognized in the results for that fiscal year. 2. Non-controlling interests in equity and in the comprehensive income of the consolidated subsidiaries are presented, respectively, under the line items “Total Equity: Non-controlling interests” in the consolidated statement of financial position and “Net Income attributable to non-controlling interests” and “Comprehensive income attributable to non-controlling interests” in the consolidated statement of comprehensive income. 3. The financial statements of foreign companies 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)” within the consolidated statement of comprehensive income: Other comprehensive income (see Note 26.2). 4. Balances and transactions between consolidated companies were fully eliminated in the consolidation process. 5. Changes in interests in subsidiaries that do not result in obtaining or losing control are recognized as equity transactions, and the carrying amount of the controlling and non-controlling interests is adjusted to reflect the change in relative interest in the subsidiary. 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 the shareholders of Enersis Américas. 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 carrying amount 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. 338 2015 Annual Report Enersis Any difference between the assets and liabilities contributed to the consolidation and the compensation given is recorded directly in Net equity as a debit or credit to other reserves. The 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 consolidated financial statements were 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 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. (See Note 17.b.1) • -Employee expenses directly related to construction in progress. (See Note 17.b.2) • Future disbursements that the Group will have to incur to close its facilities are added to the value of the asset at fair value, recognizing the corresponding provision for dismantling or restoration. The Group reviews its estimate of these future disbursements on an annual basis, increasing or decreasing the value of the asset 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 recognized as an increase in the carrying amount of the respective assets, derecognizing the replaced or overhauled components. Expenditures for periodic maintenance, conservation and repair are recognized directly as an expense for the period in which they are incurred. The Company, based on the outcome of impairment testing performed as explained in Note 3.e), considers that the carrying amount of the assets does not exceed their recoverable value. 339 Consolidated Financial Statements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 where the companies expect 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 for entities within continuing operations: Categories of Property, plant and equipment Buildings Plant and equipment IT equipment Fixtures and fittings Motor vehicles Other Years of estimated useful life 10 – 80 3 – 75 3 – 25 5 – 15 5 – 20 1 – 20 Additionally, the following table sets for more details on the useful lives of plant and equipment items: Categories of Property, plant and equipment Generating facilities: Hydroelectric plants Civil engineering works Electromechanical equipment Thermal power plants Renewable energy power plants Transmission lines Distribution facilities: High-voltage network Low- and medium-voltage network Measuring and remote control equipment Primary substations Years of estimated useful life 20 – 75 24 – 33 11 – 40 10 – 25 21 – 39 35 – 40 30 – 50 10 – 35 15 – 40 Land is not depreciated since it has an indefinite useful life. Regarding the administrative concessions held by the Group’s electric companies, the following table lists the remaining periods until expiration of the concessions that do not have an indefinite term: Concession holder and operator Country Empresa Distribuidora Sur S.A. - Edesur (Distribution) Hidroeléctrica El Chocón S.A. (Generation) Transportadora de Energía S.A. (Transmission) Compañía de Transmisión del Mercosur S.A. (Transmission) Central Eléctrica Cachoeira Dourada S.A. (Generation) Central Generadora Termoeléctrica Fortaleza S.A (Generation) Compañía de Interconexión Energética S.A. (CIEN - Line 1) Compañía de Interconexión Energética S.A (CIEN - Line 2)   Argentina     Argentina     Argentina     Argentina   Brazil   Brazil   Brazil   Brazil   Year concession started 1992   1993   2002   2000   1997   2001   2000   2002   Concession term 95 years 30 years 85 years 87 years 30 years 30 years 20 years 20 years Remaining period to expiration 72 years 8 years 72 years 72 years 12 years 16 years 5 years 7 years To the extent that the Group recognizes the assets as Property, plant and equipment, they are amortized over their economic life or the concession term, whichever is shorter. Any required investment, improvement or replacement made by the Group is considered in the impairment test to Property, plant, and equipment as a future contractual cash outflow that is necessary to obtain future cash inflow. 340 2015 Annual Report Enersis The Group’s management analyzed the specific contract terms of each of the aforementioned concessions, which vary by country, business activity and jurisdiction, and concluded that, with the exception of CIEN, there are no determining factors indicating that the grantor, which in every case is a government entity, controls the infrastructure and, at the same time, can continuously set the price to be charged for the services. These requirements are essential for applying IFRIC 12, an interpretation that establishes how to recognize and measure certain types of concessions (see Note 3.d.1 for concession agreements within the scope of IFRIC 12). On April 19, 2011, the subsidiary CIEN successfully completed its change in business model. Under the new agreement, the Government continues to control the infrastructure, but CIEN receives fixed payments, which puts it on an equal footing with a public transmission concession (with regulated prices). Under this business model, its concessions fall within the scope of IFRIC 12; however, the infrastructure has not been derecognized due to the fact that CIEN has not substantially transferred the significant risks and benefits to the Brazilian Government. 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 carrying amount of the asset and any sales costs from the consideration received in the sale. b) Investment property Investment property includes primarily land and buildings held for the purpose of earning rental income 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, and reflected upon consolidation, represents the excess value of the consideration paid plus the amount of any non-controlling interests over the 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, and so that goodwill determination, the following year after the acquisition, the prior year’s balances, which are presented for comparison purposes, are adjusted to include the value of the assets acquired and liabilities assumed and the value of the definitive goodwill as of acquisition date. 341 Consolidated Financial StatementsGoodwill arising from acquisition of companies 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 exchange rate effective as of the date of the statement of financial position. Goodwill is not amortized; instead, at the end of each reporting period or when there are indicators, the Company estimates whether any impairment has reduced its recoverable amount to an amount less than 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 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, 2015 and 2014, there were no significant amounts in 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 letter e) of this Note. 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 the carrying amount of the asset are recognized in profit or loss when the asset is derecognized. d.1) Concessions Public-to-private service concession agreements are recognized according to IFRIC 12, “Service Concession Agreements.” This accounting interpretation applies if: a) The grantor controls or regulates which services the operator should provide with the infrastructure, to whom it must provide them, and at what price; and b) The grantor controls – through ownership, beneficial entitlement, or otherwise – any significant residual interest in the infrastructure at the end of the term of the agreement. If both of the above conditions are met simultaneously, the consideration received by the Group for the constructed infrastructure is recognized at its fair value, as either an intangible asset when the Group receives the right to charge users of the public service, as long as these charges are conditional on the degree to which the service is used; or as a financial asset when the Group has an unconditional contractual right to receive cash or another financial asset directly from the grantor or from a third party. The Group recognizes the contractual obligations assumed for maintenance of the infrastructure during its use, or for its return to the grantor at the end of the concession agreement within the conditions specified in the agreement, as long as it does not involve an activity that generates income, in accordance with the Group’s provision accounting policy (see Note 3.m). 342 2015 Annual Report Enersis Finance expenses attributable to the concession agreements are capitalized based on criteria established in Note 3 a) above, provided that the Group has a contractual right to receive an intangible asset. No finance expenses were capitalized during the years ended December 31, 2015, 2014 and 2013. The Enersis Américas subsidiaries that have recognized an intangible asset from their service concession agreements are the following: Concession holder and operator Country Ampla Energía e Serviços S.A. (*) (Distribution) Brazil Companhia Energética do Ceará S.A. (*) (Distribution) Brazil Year concession started 1996 1997 Concession term Period remaining to expiration 30 years 11 years 30 years 12 years (*) Considering that part of the rights acquired by our subsidiaries are unconditional, an available-for-sale financial asset has been recognized (see Notes 3.g.1 and 9). d.2) Research and development expenses The Group recognizes in the statement of financial position the costs incurred in a project’s development phase as intangible assets as long as the project’s technical feasibility and economic returns are reasonably assured. d.3) Other intangible assets These 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 programs are amortized, on average, over five years. Certain easements and water rights have indefinite useful lives and are therefore 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 Company evaluates whether there is any indication that an asset has been impaired. If any such indication exist, the company 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 Company 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 life have been allocated, a recoverability analysis is performed routinely at each year end. Recoverable amount is the higher of fair value less the cost 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 Group uses value in use criteria in practically all cases. 343 Consolidated Financial StatementsTo estimate the value in use, the Group prepares future pre-tax cash flow projections based on the most recent budgets available. These budgets incorporate management’s best estimates of 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 Company operates. As of December 31, 2105 and 2014, projections were extrapolated from the following rates: Country Currency Chile Argentina Brazil Peru Chilean peso Argentine peso Real Sol Colombia Colombian peso Growth rates (g) 31-12-2015 31-12-2014 4.5% - 5.1%   2.2% - 5.0%   11.1%   6.9% - 7.7%   4.1% - 5.6%   5.0% - 5.9%   3.1% - 4.8%   3.4% - 4.4%   3.5% - 5.2%   4.3% - 5.3%   These 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 the 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: Country Currency Chile Chilean peso Argentina Argentine peso Brazil Peru Real Sol Colombia Colombian peso December 2015 December 2014 Minimum Maximum Minimum Maximum 8.1% 32.7% 11.1% 7.3% 8.5% 12.7% 39.4% 21.1% 13.5% 15.1% 7.9% 23.3% 9.7% 7.3% 8.0% 13.0% 38.9% 22.7% 14.3% 13.3% 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 consolidated 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. 344 2015 Annual Report Enersis f) Leases In order to determine whether an arrangement is, or contains, a lease, Enersis Américas assesses the economic substance of the agreement, to assess whether fulfillment of the arrangement depends on the use of a specific asset and whether the agreement conveys the right to the use of the asset. If both conditions are met, at the inception of the arrangement the Company separates the payments and other considerations relating to the lease, at their fair values, from those corresponding to the other components of the arrangement. Leases that substantially transfer all of the risks and rewards of ownership to the Company are classified as finance leases. All other leases are classified as operating leases. Finance leases in which the Group acts as a lessee are recognized at the inception of the arrangement. At that time, the 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 in the income statement and allocated over the lease term, so as to obtain a constant interest rate for each period over 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 asset is depreciated over the shorter term of the useful lives of the asset and the 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. 345 Consolidated Financial Statements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. g.1) Financial assets other than derivatives The Group classifies its financial assets other than derivatives, whether permanent or temporary, except for investments accounted for using the 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 parties 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 through 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 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 consolidated 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 that do not fit within any of the three preceding categories. They are mainly all financial investments in equity instruments and financial assets in accordance with IFRIC 12 “Service Concession Arrangements” (see Note 9). These investments are recognized in the consolidated statement of financial position at fair value when it can be reliably determined. For equity interests in unlisted companies or companies with lower levels of liquidity, normally the fair value cannot be reliably determined. When this occurs, those equity interests are measured at acquisition cost or a lesser amount if evidence of impairment exists. Changes in fair value, net of taxes, are recognized in the consolidated statement of comprehensive income: Other comprehensive income, until the investments are disposed of, at which date the amount accumulated in this account for that investment is reclassified to profit or loss. If the fair value is lower than the acquisition 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. 346 2015 Annual Report Enersis g.2) Cash and cash equivalents This item within the consolidated 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 its acquisition date) 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 asset has been impaired: • For trade receivables in the electricity generation, transmission and distribution segments, the Company’s policy is to recognized impairment losses when there is objective evidence that the balance will not be recoverable. In general terms, the Group’s entities has a defined policy to recognize an allowance for impairment losses based on 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 10). • 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 9 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 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 will be 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) Derivatives financial instruments and hedge Derivatives held by the Group are primarily 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. 347 Consolidated Financial StatementsDerivatives are recognized at fair value as of the date of the statement of financial position as follows: if their fair value is positive, they are recognized within “Other financial assets”; and if their fair value is negative, they are recognized within “Other financial liabilities.” For derivatives on commodities, the positive value is recorded in “Trade and other receivables,” and negative fair values are recognized in “Trade and other liabilities.” Changes in fair value are recognized directly in profit or loss except when the derivative has been designated for accounting purposes as a hedging instrument and all of the conditions established under IFRS for applying hedge accounting are met, including that the hedge be highly effective. In this case, changes are recognized as follows: • Fair value hedges: The underlying portion for which the risk is being hedged is measured at its fair value and the hedging instrument are measured at fair value, and any changes in the value of both items are recognized in the comprehensive income statement by offsetting the effects within the same comprehensive income statement account. • Cash flow hedges: Changes in the fair value of the effective portion of derivatives are recorded in an equity reserve known as “Reserve for cash flow hedges.” The cumulative loss or gain in this reserve is reclassified to the comprehensive income statement to the extent that the underlying item impacts the comprehensive income statement offsetting the effect in the same comprehensive income statement account. Gains or losses from the ineffective portion of the hedge relationship are recognized directly in the comprehensive income statement. 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%. The Company does not apply hedge accounting to its investments abroad. As a general rule, long-term commodity purchase or sale agreements are recognized in the consolidated 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 Group’s own use, which is understood, in the case of fuel purchase agreements its used to generate electricity; in the case of electrical energy purchased for sale, its sale to the end-customer; and in the case of electricity sales its sales to the end-customer. • The 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 Group’s own use, except in certain isolated cases for exceptional reasons or reasons associated with logistical issues have been used beyond the control and projection of the Group. • The agreement does not stipulate settlement by differences and the parties have not made it a practice to settle similar contracts by differences in the past. The long-term commodity purchase or sale agreements maintained by the 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, the electricity purchase contracts are used to sell to end- customers, and the electricity sale contracts are used to sell the Company’s own products. 348 2015 Annual Report Enersis The Company 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. 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 Group has assumed a contractual obligation to pay these cash flows to one or more recipients. • The 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 asset. Transactions in which the 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 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 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. 349 Consolidated Financial Statements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 on selling the asset or minimizes the amount that would be paid to transfer the liability. In estimating fair value, the Group uses valuation techniques that are appropriate for the circumstances and for which there are sufficient data to conduct the measurement. The 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 price (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 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 Company’s own credit risk; • For derivatives non-quoted in an organized market, the Group uses 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 Group itself. 350 2015 Annual Report Enersis • 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. Assets and liabilities measured at fair value are shown in Note 22.3. i) Investments accounted for using the equity method The 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 Group’s interest represents in its capital, adjusted for, if appropriate, the effect of transactions with 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 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 Group is entitled based on its ownership interest is recognized under “Share of profit (loss) of associates accounted for using equity method.” Appendix 3: “Associated Companies and Joint Ventures” to these consolidated financial statements, provides information about the relationship of Enersis Américas with each of these entities. j) Inventories Inventories are measured at their weighted average acquisition price or the net realizable value, whichever is lower. 351 Consolidated Financial Statementsk) Non-current assets (or disposal groups) classified as held for sale or as held for distribution to owners and discontinued operations The Group classifies as non-current assets (or disposal groups) held for sale or held for distribution to owners, the 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), if, as of the date of the consolidated financial statements, the Group has taken active measures for their sale, or their distribution to owners, 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 to sell. Depreciation and amortization on these assets cease when they meet the criteria to be classified as non-current assets held for sale. Non-current assets or disposal groups classified as held for distribution to owners are measured at the lower of their carrying amount and their fair value less costs to distribute. 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 or held for distribution to owners are presented in the consolidated statement of financial position as a single line item within assets called “Non-current assets or disposal groups held for sale or for distribution to owners,” and the respective liabilities are presented as a single line item within liabilities called “Liabilities included in disposal groups held for sale or for distribution to owners.” The Group classifies as discontinued operations those components of the Group that either have been disposed of, or are classified as held for sale, and (i) represents a separate major lines of business or geographical area of operations; (ii) is a part of a single coordinated plan to dispose a separate major line of business or geographical area of operations; or (iii) is a subsidiary acquired exclusively with a view to resale. The components of profit or loss after taxes from discontinued operations are presented as a single line item in the consolidated comprehensive income statement as “Income after tax from discontinued operations”, including incremental taxes related to the spin-off transaction, once it becomes effective. 352 2015 Annual Report Enersis l) Treasury shares Treasury shares are deducted from equity in the consolidated statement of financial position and measured at acquisition cost. Gains and losses from the disposal of treasury shares are recognized directly in “Equity – Retained earnings”, without affecting profit or loss for the period. As of December 31, 2015 and 2014, there are no treasury shares, and no transactions with treasury shares were carried out during the years 2015 and 2014. m) Provisions Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic benefits 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). The unwinding of the discount is recognized as finance cost. Incremental legal cost expected to be incurred in resolving a legal claim is included in measuring of the provision. Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed. A contingent liability does not result in the recognition of a provision. Legal costs expected to be incurred in defending a legal claim are expensed as they are incurred. Significant contingent liabilities are disclosed unless the likelihood of an outflow of resources embodying economic benefits is remote. m.1) Provisions for post-employment benefits and similar obligations Some of the Group’s subsidiaries have pension and similar obligations to their employees. Such obligations, which combine 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 applicable. 353 Consolidated Financial StatementsFor each of the defined benefit plans, any deficit between the actuarial liability for past services and the plan assets is recognized under line item “Provisions for employee benefits” within current and non-current liabilities in the consolidated statement of financial position, and any surplus is recognized under line item “Other financial assets” within non-current assets in the consolidated statement of financial position, provided that any surplus is recoverable by the Group, usually through a reduction in future contributions and taking into consideration the limit established in IFRIC 14, IAS 19 The limit on a defined benefit asset, minimum funding requirements, and their interaction. Actuarial gains and losses arising in the measurement of both the plan liabilities and the plan assets, including the limit in IFRIC 14, are recognized directly as a component of other comprehensive income. Contributions to defined contribution benefit plans are recognized as an expense when the employees have rendered their services. n) Translation of balances in foreign currency Transactions carried out by each company in a currency other than its functional currency are recognized using the exchange rates prevailing as of the date of each transaction. During the year, any differences that arise between the prevailing exchange 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 comprehensive income statement. Likewise, at the end of each reporting period, receivable or payable balance denominated in a currency other than each company’s functional currency are translated using the closing exchange rate. Any differences are recognized as “Foreign currency exchange differences” in the comprehensive income statement. The Group has established a policy to hedge the portion of revenue from its subsidiaries that is directly linked to variations in the U.S. dollar, through obtaining financing in such currency. Exchange differences related to this debt, as they are cash flow hedge transactions, are recognized, net of taxes, as a component of other comprehensive income in item “Gains (losses) from cash flow hedge” and reclassified to profit or loss when the hedged cash flows impact profit or loss. This term has been estimated at ten years. o) Current/non-current classification In these consolidated 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; and 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 Company have any obligations that mature in less than twelve months but can be refinanced over the long term at the Company’s discretion, through unconditionally available credit agreements with long-term maturities, such obligations are classified as long-term liabilities. 354 2015 Annual Report Enersis p) Income taxes Income tax expense for the year is determined as the sum of current taxes from each of the Group’s subsidiaries and results from applying the tax rate to the taxable income for the year, 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 originate deferred tax asset and liability balances, 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. As an exception to the criteria described above and in accordance with Official Resolution No. 856 by the SVS, issued on October 17, 2014, the fluctuations in deferred tax assets and liabilities originated as a result of the direct effect of progressively increasing the income tax rate as stated in Law 20,780 as issued on September 29, 2014, which affect the Chilean subsidiaries of the Group, have been recognized directly in equity (retained earnings). (See Note 19.c). 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 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). In respect of deductible temporary differences associated with investments in subsidiaries, 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 measuring investments in subsidiaries, associates and joint ventures in which the 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 within the statement of financial position, 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. At the end of each reporting period, the Company reviews the deferred taxes assets and liabilities recognized, and makes any necessary corrections based on the results of this analysis. 355 Consolidated Financial StatementsDeferred tax assets and deferred tax liabilities are offset in the statement of financial position if it 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. q) Revenues and expense recognition Revenue is recognized when the gross inflow of economic benefits arising in the course of the Group’s ordinary activities in the year 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 and transmission 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 year, 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 but billed and for which customers’ meters have not been read (see Note 2.3). 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. Revenue from sales of goods 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. 356 2015 Annual Report Enersis In arrangements under which the 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. The 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. The Group recognizes the net amount of non-financial asset purchase 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 not meet the requirements for recording them as assets. r) Earnings per share Basic earnings per share are calculated by dividing net income attributable to shareholders of the Parent Company (the numerator) by the weighted average number of ordinary shares outstanding (the denominator) during the year, excluding the average number of shares of the Parent Company held by other subsidiaries within the Group, if any. Basic earnings per share for continuing and discontinued operations are calculated by dividing net income from continuing and discontinued operations attributable to shareholders of the Parent Company (the numerator) by the weighted average number of ordinary shares outstanding (the denominator) during the year, excluding the average number of shares of the Parent Company held by other subsidiaries within the Group, if any. During the years 2015, 2014 and 2013, the Group did not engage in any transaction of any kind with potential dilutive effects leading to diluted earnings per share that could differ from basic earnings per share. s) 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 period, except when accumulated losses from prior years must be absorbed. 357 Consolidated Financial StatementsAs it is practically impossible to achieve a unanimous agreement given Enersis Américas’ 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 as soon as they are approved by the competent body, which in the first case is normally the Company’s Board of Directors and in the second case is the Ordinary Shareholders’ Meeting. t) Share issuance costs Share issuance costs, only when represents incremental expenses directly attributable to the transaction, are recognized directly in net equity as a deduction from “Share premiums,” net of any applicable taxes. If the share premium account has a zero balance or if the costs described exceed the balance, they are recognized in “Other reserves.” u) Cash flow statement The cash flow statement reflects changes in cash and cash equivalents that took place during the year, determined with the direct method. It uses the following expressions and corresponding meanings: • Cash flows: inflows and outflows of cash or cash equivalents, which are defined as highly liquid investments maturing in less than three months with a low risk of changes in value. • Operating activities: the principal revenue-producing activities of the Group and other activities that cannot be considered investing or financing activities. • Investing activities: the acquisition and disposal of long-term assets and other investments not included in cash and cash equivalents. • Financing activities: activities that result in changes in the size and composition of the total equity and borrowings of the Group. 358 2015 Annual Report Enersis 4. Sector Regulation and Electricity System Operations 4.1 Continuing operations: a) Regulatory framework Argentina Argentina has shown signs of intervention in the electricity market since the crisis of 2002. Under the previous regulations, generators sold to distributors at prices obtained from centralized calculations of the average spot market price. The distributers’ purchase price was the average price forecast for the next six months, called the Seasonal Price (Precio Estacional). Any differences between the Seasonal Price (the purchase price) and the actual spot price (the selling price) was charged to the Seasonal Fund (Fondo Estacional) managed by the Electricity Wholesale Market Administration Company (CAMMESA - Compañía Administradora del Mercado Mayorista Eléctrico). However, after the 2002 crisis, the authorities changed the price-setting criteria, bringing the marginal pricing system to an end. First, marginal prices were calculated without taking into consideration the natural gas shortages. In effect, despite the fact that generation is dispatched on the basis of the fuels actually used, Resolution SE 240/2003 establishes that the marginal price is to be calculated taking into consideration all of the generation units as if there were no restrictions in effect on natural gas supplies. In addition, the expense of water is not included in the calculations if its opportunity cost is higher than the cost of generating power with natural gas. Second, it established a spot price ceiling of Ar$ 120/MWh. However, CAMMESA pays the actual variable costs of the thermal plants that run on liquid fuels through the Temporary Dispatch Cost Overruns program. In addition, as the dollarized economy was devalued and went back to the Argentine peso, payment for capacity fell from US$ 10 to Ar$ 10 per MWh. Capacity payments have subsequently risen slightly, to Ar$ 12 pesos. Additionally, the freezing of prices paid by distributors caused a gap in relation to actual generation costs, resulting in various types of special agreements for recovering costs, in accordance with regulations in force. It was in this context that the government announced in 2012 its plan to change the current regulatory framework for one based on an average cost scheme. Resolution 95/2013 was published in March of 2013, significantly changing the system for generators’ remunerations and setting new prices for capacity depending on the type of technology used and availability. It also set new values for paying for non-fuel variable costs, as well as additional remuneration for energy generated. In May 2013, the Group’s generating companies (Central Costanera, Hidroeléctrica El Chocón y Dock Sud) accepted the terms of Resolution SE 95/2013. 359 Consolidated Financial StatementsThis resolution marked the end of marginal pricing as a payment system in the Argentine power generation market and established, instead, payment by type of technology and size of plant. For each case, it recognizes fixed costs (determined on the basis of fulfillment of availability) and variable costs, plus an additional remuneration (the two parts are determined on the basis of the energy generated). Part of the additional remuneration will be placed in a trust for future investments. In principle, commercial management and fuel dispatch will be in the hands of CAMMESA; Terminal Market agreements cannot be extended or renewed, and large users, once their respective contracts are up, must purchase their supply from CAMMESA. However, the Energy Secretariat, in Note SE 1807/13, gave generators the opportunity to express their intention to continue handling collections for their entire contract portfolio, thus ensuring a certain amount of cash flow and a continuing relationship with the customer. It is also important to mention that Central Costanera has availability contracts signed in 2012 that are still in effect, as well as combined cycle contracts (until 2015) and steam generation contracts (until 2019) that will enable the company to implement plan for investing in the Costanera plant generation units in order to optimize the reliability and availability of that plant. The contracts also include payment of the commitments under the Long-Term Service Agreement (LTSA) for the plant’s combined cycles. Through Resolution 529/2014, the Energy Secretariat updated generators’ remuneration, which had been in effect since they were set in February 2013 under Resolution 95/2013. The new resolution increased recognition of fixed costs for combined cycle and large hydroelectric plants by 25% and adjusted variable costs by 41% for thermal plants and 25% for hydroelectric plants. A new variable remuneration was set for biodiesel-fired plants. The additional remuneration increased 25% for thermal plants, and a new charge of Ar$ 21/MWh was set for one-time maintenance for combined cycle and Ar$ 24/MWh for other thermal generation plants. The resolution is retroactive to February 2014. Through Resolution 482/2015, the Energy Secretariat updated generators’ remuneration, which had been in effect since they were set in February 2014 under Resolution 529/2014. The new resolution increased recognition of fixed costs for combined cycle and large hydroelectric plants by 28%, and 64% for mid-size hydroelectric plants. The variable costs were adjusted by 23%, hydroelectric plants are exempted of variable electric transmission payments and has been implemented a new incentive scheme for generation and operative effectiveness for thermal plants. The additional remuneration increased by 26% for thermal plants and 10% for mid-size hydroelectric plants. The cost for non-recurrent maintenance was increased by 17% and the same concept is created for hydro electrical plants in Ar$ 8/MWh. Finally, a new charge of Ar$ 15.8/MWh for thermal plants and Ar$ 6.3/MWh for hydro electrical plants was set for investments funding, which will be effective from February 2015 to December 2018 only for those generators participating in the projects. The new generation will have an additional remuneration equivalent to 50% of the direct additional remuneration based on technology for a 10-year period. The resolution is retroactive to February 2015. 360 2015 Annual Report Enersis Brazil Legislation in Brazil allows the participation of private capital in the electricity sector, upholds free competition among companies in electricity generation, and defines criteria to avoid certain levels of economic concentration and/or market practices that may cause a decline in free competition. Based on the contract requirements as stated by distribution companies, the Ministry of Energy has been involved in planning the expansion of the electricity system, setting capacity quotas by technology on the one hand and, on the other, promoting separate tender processes for thermal, hydraulic or renewable energies, or directly holding tender processes for specific projects. The operation is being coordinated in a centralized fashion in which one independent operator coordinates centralized load dispatch based on variable production costs and seeks to guarantee to meet demand at the minimum cost for the system. The price at which transactions take place on the spot market is called the Difference Liquidation Price (Precio de Liquidación de las Diferencias, PLD), which takes into account the players’ aversion to risk. Generation companies sell their energy on the regulated or unregulated market through contracts, and they trade their surpluses or deficits on the spot market. The free market is aimed at large users, with a limit of 3,000 kW or 500 kW if they purchase energy produced with renewable resources. In the unregulated market, suppliers and their clients directly negotiate energy purchase conditions. In the regulated market, in contrast, where distribution companies operate, energy purchases must go through a tender process coordinated by the National Electricity Agency (ANEEL). In this way, the regulated purchase price used in the determination of tariffs to end users is based on average prices of open bids, and there are separate bidding processes for existing and new energy. Bidding processes for new energy contemplate long-term generation contracts in which new generation projects must cover the growth of demand foreseen by distributors. The open bids for existing energy consider shorter contractual terms and seek to cover the distributors’ contractual needs arising from the expiry of prior contracts. Each bidding process is coordinated centrally. Authorities set maximum prices and, as a result, contracts are signed where all distributors participating in the process buy pro rata from each offering generator. On November 25, 2014, the ANEEL approved the new PLD limits for 2015. The maximum limits (decreased from R$ 823 to R$ 388/MWh) and the minimum (increased from R$ 16 to R$ 30/MWh). The decision was the result of extensive debate, which began with Public Consultation number 09/2014 and later with Public Hearing number 54/2014. The main effect of the new limit is to reduce the financial impact for distributors of potential future risks when contracting energy on the spot market, as in 2014 the spot price was at its maximum for much of the year. The new maximum price also mitigates the risk of unrecoverable economic and financial losses for generators, when production is below contract values. However, the possibility of selling excess energy at higher prices decreases. Currently generators can divide their excess energy across the months of the year, to boost their revenues by allocating more energy to those months where higher prices are expected, as the ceiling is lower. Annually, the ANEEL confirms through Resolutions the minimum and maximum values for the PLD limits. In 2016, the maximum and minimum PLD limits are R$ 422.56/MWH and R$ 30/MWh, respectively. Such PLD limits reflect the estimated costs of the Itaipú mega hydro power plant, which will have a tariff of 25.78 US$/ kW in 2016. 361 Consolidated Financial StatementsThese regulatory mechanisms ensure the creation of regulatory assets, whose rate adjustment for deficits in 2014 will take place in the tariff adjustments starting in 2015 (March for Ampla and April for Coelce). This mechanism has existed since 2001, and is called the Compensation Clearing Account - Part A (Cuenta de Compensación de Valores – Parte A, “CVA”). They aimed to maintain consistent operating margins for the dealer by allowing tariff revenue due to the costs of Parcel A. Compensation Clearing Account (“CVA” for its acronym in Portuguese) helps maintain stability in the market and enables the creation of deferred costs, which is compensated through tariff adjustments based on the fees necessary to compensate for deficits the previous year. On December 10, 2014 an addendum was signed to the concession contract for distributors in Brazil (Ampla and Coelce), which allows these regulatory assets (CVA’s and others) to be included in indemnitee assets at the end of the concession, and if this is not possible over time, it allows compensation through tariffs. Therefore, the recognition for these regulatory assets/liabilities is allowed under IFRS. Brazil continued to experience drought conditions throughout 2014. In November the system reached the maximum risk of energy rationing. The average reservoir levels were 1% lower than at the last rationing. However, the Government has stated that there is no risk to supply. The Government has created the ACR account to cover the additional energy costs through bank loans to be paid within two years through the tariff. Distributors had used approximately 18 billion reals from the ACR account by December 31, 2014. However, this was not enough to cover the shortfall. In March 2015, it was approved a new loan against the ACR account to cover the shortfall of November and December 2014. In addition, it was approved an extension in the payment period for all loans, which currently will have to be paid in 54 months from November 2015. In January 2015, based on the mismatches between the costs recognized in tariffs and actual costs other than those related to operations of the distribution entities, and increased inherent drought conditions costs, ANEEL began the application of a system (known as Tariffs Flags) of monthly charges over the tariff to the customers, provided that the marginal cost of the system is higher than the regulatory standard. The purpose of the regulator is to indicate the customers the generating cost of the following month, and paying in advance to the distribution companies an amount that would only be available in the next tariff review process. The system consists of three levels of colored flags: Green, Yellow and Red as follows: Description To be applied when CMO (R$/MWh) Additional Tariff (R$/MWh) Green Favorable generation of energy conditions <200 Yellow Red Less favorable generation of energy conditions >200<388.48 Higher costs generation conditions >388.48 None + 0.025 + 0.045 362 2015 Annual Report Enersis From January until reporting date, the values have been changing based on new expectations of future generation costs. In summary, with this mechanism the generation cost that is currently transferred to the customer only once a year (when the annual tariff adjustment is performed) will generate a monthly variation and the customer can improve control over his/her electricity consumption. That is, the consumers will notice a lower tariff adjustment as they are paying a higher amount during the month. Notwithstanding, the ANEEL, the agents and the community, discussed in a public hearing on December 15, 2015, improvements to the Tariff Flags system, where the main change proposed by ANEEL is to separate the Red Flag into two levels from February 2016. In line with above, and looking for a solution to the effects of the drought conditions, the ANEEL approved in November 2015, the conditions to “renegotiate” the hydrological risk with the generation agents participating in the Electricity Reallocation Mechanism (“MRE”) which were pending until that date. However, the “Transitional Measure” is still pending of approval at the Senate. Currently, there is a major portion of generators with preliminary judicial decisions allowing limiting their risk and passing part of the cost through the customers. In addition, for purposes of reestablish the energy supply, six electric power auctions have been called: • 1 auction A-1: 1,954 MWavg, allocated to Hydro (94%), Biomass (4%) and Gas (2%); from 1 to 3 years of energy supply; • 4 auctions A-3: • 97MWavg, allocated to Wind (30%) and Biomass (70%), at an average price of R$ 200/MWh • 233MWavg, allocated in 100% to Solar, at an average price of R$ 301.8/MWh • 314.3MWavg, allocated to Wind (72%), Hydro (15%), Gas (7%), and Biomass (6%), at an average price of R$ 189/MWh • 508MWavg, allocated to Wind (52%) and Solar (48%), at an average price of R$ 249/MWh. • 1 auction A-5: 1,160 MWavg, allocated to Gas (73%), Hydro (20%) and Biomass (7%), at an average price of R$ 259.2MWh. Also, it was carry out an Auction for Contracting Hydroelectrical Plants Concessions through the quota regime, in which the seller is granted energy (3,223 MWavg) and capacity (6,061 MW) for an Annual Revenue from Generation Operations. Energy Development Account (CDE) The CDE, created under Law 10,438/2002, is a state-owned fund that provides energy development from alternative sources, promotes energy service globalization, and subsidizes the low income residential sub- class. The fund is financed through a charge in the tariff of customers and generators. 363 Consolidated Financial StatementsPro rata allocation due to judicial matters At the end of September 2015, ANEEL, based on certain judicial outcomes referring to suspend collection of CDE charges to certain industrial participants (Abrace’s members), had to recalculate the CDE pro rata allocation to the rest of the applicable participants, despite having transferred Parcel A costs, finally the deficit originated for the revenue losses will be included in the tariff adjustments of the distribution companies. CDE 2016 On December 15, 2015, ANEEL organized a public hearing to discuss with agents and the community the 2016 economic budget for the CDE. The preliminary proposal of ANEEL is a 36% budget reduction for the charge “CCC” efficiency energy interruptions leading to a lower charge to the final tariff for the consumers. The deadline for the contibutions is January 15, 2016. Extension of the concession contracts of distribution From September 2012, distribution concessions under Article 22 of Law 9,074/1995 could be one-time renewed for a maximum 30-year period upon decision of the Grantor Power, in order to ensure the continuity, efficiency in rendering services, tariff model and acknowledging an operational and economic rationale. The renewal of the concession for such distributions companies will be conditional to the render of quality services based on criteria relating to operational efficiency and economic/financial management. On October 20, 2015, ANEEL approved the “draft version” of the amendment to the Concession Contract and recommended to the Ministry of Energy and Mining to extend the concessions. On December 28, 2015, the government extended the period to sign the contract for extending concessions due to complexity in the analysis of current grantors, and only approving the CELG’s concession. Distributed Generation On November 24, 2015, ANEEL approved the regulation on distributed micro- and mini-generation by using an energy compensation mechanism. In May 2015, the regulator in a public hearing began the process to modify the regulations related to the distributed micro- and mini-generation aimed to making it more viable. The most important modification is to allow the installation of generation systems (of any renewable source, up to 3MW for hydro and 5MW for other sources) in locations other than where is located the load. 364 2015 Annual Report Enersis Colombia The Public Utility Law (Ley de Servicios Públicos Domiciliarios, Law 142) and the Electricity Law (Ley Eléctrica, Law 143) were passed in 1994 establishing the new framework ordered by the Constitution. These laws set out the general criteria and policies that are to govern public utility service provision in the country, as well as the procedures and mechanisms for regulating, monitoring and overseeing them. The Electricity Law puts the constitutional focus into practice, regulating the generation, transmission, distribution and sale of electricity, creating the market and competitive environment, strengthening the industry and setting the boundaries for government intervention. Taking into account the nature of each activity or business, general guidelines were established for developing the regulatory framework, creating and implementing the rules that would allow for free competition in the power generation and sales industries, while the directives for the transmission and distribution industries were geared toward treating these activities as monopolies while seeking out competitive conditions wherever possible. The main institution in the electricity sector is the Mining and Energy Ministry, who´s Mining Energy Planning Unit, (Unidad de Planeación Minero Energética, UPME) draws up the national Energy Plan and the Generation and Transmission Expansion Plan. The Energy and Gas Regulatory Commission (Comisión de Regulación de Energía y Gas, CREG) and the Public Service Superintendency (Superintendencia de Servicios Públicos, SSPD) regulate and oversee, respectively, the companies in the industry, and the Superintendency of Industry and Commerce is the national authority for free trade protection issues. The electricity industry operates on the basis of electricity-selling companies and the large consumers being able to buy and sell energy through bilateral contracts or on a short-term energy exchange market, called the energy exchange that operates freely according to supply and demand conditions. In addition, long-term auctions of Firm Energy within a Reliable Charge scheme are carried out to promote the expansion of the system. The market is operated and administered by XM, which is in charge of the National Dispatch Center (Centro Nacional de Despacho, CND), and the Commercial Interchange System Manager (Administrador del Sistema de Intercambios Comerciales, ASIC). Peru The Electricity Concessions Law and its regulations, the Law to Ensure Efficient Development of Electricity Generation (Law 28,832), the Electricity Industry Antimonopoly and Oligopoly Law, the Technical Standard for Electricity Service Quality, the Environmental Protection Regulations for Electricity Activities, the Law Creating the Energy and Mining Investment Supervisory Agency (OSINERGMIN) and its regulations, and the Regulations for Unregulated Electricity Users and Decree Law 1221 which improves the regulation of distribution of electricity to promote access to electricity in Peru all comprise the main legislation in the regulatory framework for doing business in the power industry in Peru. Law 28,832, whose purpose is to ensure enough efficient power generation to reduce the risk of price volatility and rationing, promotes the establishment of market prices based on competition, planning and ensuring a mechanism that guarantees expansion of the transmission grid, and also allows Large Unregulated Users and Distributors to participate in the short-term market. Accordingly, the law promotes tender processes for long-term power supply contracts at firm prices in order to encourage investment in efficient generation and contracts with distribution companies. Distribution companies must begin the tender processes at least three years ahead of time in order to keep Regulated Users’ demand covered. 365 Consolidated Financial StatementsExpansion in transmission must be planned through a binding Transmission Plan drawn up by the COES SINAC and approved first by the OSINERGMIN and then by the Energy and Mining Ministry. There are two types of system: a) the Guaranteed Transmission System, which is paid for by the demand; and b) the Complementary Transmission System, which is financed jointly by the generation companies and by the demand. The purpose of the COES SINAC is to coordinate operations at the lowest possible cost while ensuring a reliable system and the best use of energy resources, to plan transmission and to manage the short-term market. It is made up of generation, transmission and distribution companies and Large Unregulated Users (those with demand of 10 MW or higher) who belong to the National Interconnected Grid (Sistema Eléctrico Interconectado Nacional). Generation companies may sell their power to: (i) Distribution companies through tender contracts or regulated bilateral contracts; (ii) Unregulated clients; and (iii) the spot market, where surplus energy is traded among generation companies. Generation companies are also paid for the firm capacity they contribute to the system regardless of their dispatch. Peru’s spot price, given the definition of its ideal marginal cost, does not necessarily reflect the costs in the system, as it does not consider the current shortages in the natural gas and electricity transport system. Furthermore, it sets a ceiling price for the market. This was established in an emergency regulation in 2008 (Emergency Decree 049 of 2008) that will remain in effect at least until the end of 2016. Decree Law 1221, published on September 24, 2015, amends certain aspects of the current framework, among others: • In tariff distribution, VAD (Value Added Distribution) and Internal Rate of Return (IRR) calculation will be made individually for each distribution company with more than 50,000 customers. • The Energy and Mining Ministry will define a Technical Responsibility Zone (ZRT) for each distributor, taking into consideration the environment of the Regions where they operate (near to concession zones). The works conducted at the ZRT shall be approved by the Distributor, and it will have priority to conduct them or might be subsequently transferred to them. A VAD will be recognized for investment and audited actual costs (with an upper threshold). • Add to the VAD a charge for Technological Innovation and/or Energy Efficiency in Distribution. • Add an adjustment factor to the VAD that encourages service quality in Distribution. • Establish an obligation to the Distributors to assure their regulated demand for 24 months. • Establish an obligation to the Distributor of making urban electrification or return the contribution once 40% of habitability is reached. • Regarding the concessions, it limits to 30 years those granted through bidding processes, it establish a requirement for a favorable report of basin management for hydro electrical generation, and the granting and expiration of concessions shall be ruled through Ministry Resolution. • Establish conditions for distributed generation of non-conventional renewable energy and co-generation that allows them to inject the surpluses to the distribution system without affecting the operational assurance. 366 2015 Annual Report Enersis The description of the regulatory framework in the document does not include the Law Decree, since most of the amended aspects will be finally ruled by the end of 2015 or beginning of 2016, for its subsequent implementation. Non-Conventional Renewable Energy • In Brazil, the ANEEL holds auctions by technology considering the expansion plan set by the EPE, the planning agency; so that the target amount set for non-conventional renewable energy capacity is met. • In Colombia, Law 697 was issued in 2001 by the Program for the Rational and Efficient Use of Energy and Other Forms of Non-Conventional Energy (Programa de Uso Racional y Eficiente de la Energía y demás formas de Energías No Convencionales - PROURE). Subsequently, indicative targets were defined for non- conventional renewable energy of 3.5% for 2015 and 6.5% for 2020. Law 1715 was enacted in 2014, which created a legal framework for the development of non-conventional renewable energy, in which guidelines for declarations of public interest, as well as tax, tariff and accounting incentives were established. As part of the implementation, the Ministry of Mines and Energy enacted Decree 2469 in 2014 establishing guidelines for energy policy on supply of self-generation surpluses. Likewise, the Energy and Gas Regulatory Commission (“CREG”) issued resolution 24/2015 regulating high-scale self-generation activity, and the Mining Energy Planning Unit (“UPME”) issued resolution 281/2015 establishing the limit for low-scale (equal to 1MW) self-generation. Additionally, the CREG issued resolution 11/2015 encouraging demand response mechanisms. In 2015, the CREG issued Resolution 138 that amends the remuneration scheme for confidence charges for minor plants. This new regulation establishes that such plants will belong to the centralized scheme of the charge and will declare ENFICC in order to obtain OEF assignments. If the difference between actual and programmed generation in those plants is lower than +/-5%, they could keep the current remuneration scheme. The Ministry of Mines and Energy issued in 2015 Law Decree 1623 that establishes guidelines on zone expansion policies, and Law Decree 2143 that outlines the application of fiscal and tax incentives established in Law 1715. • In Peru, a target of 5% has been set as the NCRE share in the country’s energy system. It is a nonbinding target and the regulatory agency, the OSINERGMIN, holds differential auctions by technology to help reach the goal. • In Argentina, on October 21, 2015 it was published in the Official Bulleting the new Law 27, 191 for Renewable Energy, replacing the current Law 26,190. The new regulation postpones to December 31, 2017 the goal to reach 8% share in the national demand of energy with renewable sources for generation and establishes as a second stage goal to reach 20% share in 2025 establishing mid-objectives of 12%, 16% and 18% for the end of years 2019, 2021, and 2013. The enacted Law creates a Fiduciary Fund (“FODER”) to finance works, grants tax benefits to renewable energy projects and establishes exempts for specific taxes, national, provincial and municipality royalties until December 31, 2025. The customers categorized as Large Users (>300 Kw) shall comply on an individual basis with the renewable share goals, establishing that the price of the contracts shall not exceed 113 US$/MWh, and setting sanctions to those not fulfilling the goals. It is pending regulatory law. Limits on integration and concentration In general, all of the countries have 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. 367 Consolidated Financial Statements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 Argentina and Colombia there are specific restrictions if generation or distribution companies want to become majority shareholders in transmission companies. Regarding concentration in a specific sector, in Argentina, there are no specific limits that affect the vertical or horizontal integration of a company. In Peru, integration is subject to authorization. In Colombia, no company may have a direct or indirect market share of over 25% in electricity sale activities, although two criteria have been established for generating activity. One of these relates to participation limits depending on market concentration (HHI) and the size of the players according to their Firm Energy, and the other relates to pivotally conditions in the market depending on the availability of resources to meet system demand. In addition, Colombian companies created after the Public Service Law was enacted in 1994 can only engage in activities that complement generation/ sales and distribution/sales. Finally, in Brazil, with the changes taking place in the power industry under Law 10,848/2004 and Decree 5,163/2004, the ANEEL gradually perfected regulations, eliminating concentration limits as no longer compatible with the prevailing regulatory environment. However, regulatory approval is required for consolidations or mergers to take place between players operating within the same business segment. Market for unregulated customers In all of the countries where the Group operates, distributing companies can supply their customers under regulated or freely-agreed conditions. The supply limitations imposed on the unregulated market are as follows: Country Argentina Brazil Colombia Peru kW threshold > 30 kW > 3,000 kW or > 500 kW (1) > 100 kW or 55 MWh-month > 200 kW (2) (1) The >500 kW limit applies if energy is purchased from renewable sources, for which the government provides incentives through a discount on tolls. (2) In April 2009, it was established that clients between 200 kW and 2,500 kW could choose between the regulated and unregulated markets. Those using over 2,500 kW are required to be unregulated customers. b) Tariff Revisions: General Aspects In the countries where the Group operates, 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. Argentina In Argentina, the first review of Edesur’s tariffs scheduled for 2001 was cancelled by the authorities due to the country’s economic and financial crisis, and tariffs were frozen starting with that year. Edesur’s tariff restructuring started in 2007 with the enforcement of the “Acta Acuerdo,” or Agreement Act. The last tariff adjustment made to date went into effect in 2008 (with a positive effect on the added value distribution, or VAD), when tariffs were adjusted for inflation (applying the cost monitoring mechanism, or MMC, provided for in the Agreement Act). 368 2015 Annual Report Enersis In November 2012, the ENRE passed Resolution 347 authorizing a fixed charge to be added on invoices which differs for various categories of customers. This charge will finance infrastructure works and corrective maintenance through a trust (FOCEDE). Additionally, in July 2012, the ENRE appointed an observer in Edesur; the appointment is still in effect, although this does not imply loss of control of the company. Resolution SE No. 250/13 was published in May 2013 authorizing compensation for Edesur’s debt corresponding to revenues originating from the application of the Program for the Rational Use of Electricity (PUREE) until February 2013, with a credit in its favor from recognition of the MMC for the six-month periods between May 2007 and February 2013. In addition, the Resolution instructed CAMMESA to issue in Edesur’s favor what are termed as Sales Settlements with Unspecified Due Dates for values exceeding the compensation mentioned above, and authorized CAMMESA to receive these settlements as partial payment of Edesur’s debt. Subsequently, Resolution SE 250/13 was supplemented and extended to December 2014 under Secretary of Energy Note SE 6852/2013, No. 4012, No.486 and No.1136. The financial effects of this compensation positively affected net income for the company. However, the Comprehensive Tariff Review (RTI) to adjust Edesur’s revenues to its costs and obligations, as provided for in the Renegotiation Agreement Act, is still pending at this time. In March 2015, the Secretary of Energy issued Resolution SE No. 32/2015 establishing beginning on February 1, 2015 a NEW THEORETICAL TARIFF TABLE without passing it to the tariffs to the customers. The difference between the theoretical table and that applied to customers represent temporary additional revenue to the distribution Company, being the difference determined by the ENRE and CAMMESA responsible for transfer those funds. The resolution states that those additional revenues will be considered in the future RTI. Also, ENRE was instructed to apply the initial actions to implement it. Likewise, and as of the same date, the resolution states that the funds originated in the PUREE will become actual revenue of the distribution company for recognizing higher costs. Additionally, it maintain the funding of the investments through the ENRE 347/12 charge and loans scoped in Resolution SE 10/2014. In regards with the situation before January 31, 2015, the resolution extended the compensation MMC – PUREE to that date, allowing the payment between the loan to the distributor company and the Energy Invoice with CAMMESA. The remaining balance will be paid using a payment plan to be defined. In terms of the definition of the debt between EDESUR and CAMMESA, the Energy Secretary defined to be determined using the active rate of Banco de la Nación Argentina as well for the loans as for the debt of Edesur, without considering interest from CAMMESA as stated in the procedures. The resolution requested to the Company to present an Investment Plan for its approval and execution during the year 2015. Also, it requested to abandon the judicial actions that would have been initiated and the Commitment of Use of the additional revenues received (among them, not paying dividends). Subsequently, the Secretary of Energy through Resolution SE No. 1208, instructed CAMMESA on the methodology to calculate the debt, as of January 31, 2015, that EDESUR owed to the MEM, and its compensation with the credits from the application of the Cost Monitoring Mechanism (MMC). As a result, during the first semester of 2015, EDESUR recognized net financial income for AR$ 628.6 million. 369 Consolidated Financial StatementsAlthough Resolution SE No. 32/2015 represents the first step towards an improvement in the economic situation of the Company, it expects that investments be still financed with mutual loans with CAMMESA. It is still pending to establish mechanisms to allow payment of remaining balances in favor of MEM, as well as, the revenue updates from the increases in operational costs. On the other side, tariffs remain frozen since 2008. Additionally, the ENRE informed to the Secretary of Energy the variations to the Cost Monitoring Mechanism (MMC) for the November 2014 – April 2015 (6.85%) and May 2015 – October 2015 (8.92%) periods as required by Article 2 of Resolution SE 32/15. Based on such variations, the Secretary of Energy updated the Transitional Revenues established in Article 5 of Resolution SE 32/15. The updates were informed through Notes SE 2097 and 2157. On the other hand, the issuance of Resolution SE 2158 resulted in the recognition of additional salary expense for the year 2014 that were applied to employees in year 2015. Brazil In Brazil, there are three types of tariff adjustments: i) Ordinary Tariff Reviews (RTO) which are conducted periodically in accordance with the provisions in the concession contracts (in Coelce every 4 years and in Ampla every 5 years); (ii) Annual Adjustments (IRT) since Brazil, unlike other countries, does not automatically index its tariffs to inflation; and (iii) Extraordinary Reviews (RTE) when important events have occurred that may affect the financial situation of the distributors. In September 2012, the government approved Temporary Measure 579, one purpose of which was to reduce certain electricity tariff taxes and special charges paid by the final user, which will be paid in the future with the state budget. In January 2013, the Temporary Measure became Law 12,783, giving rise to Extraordinary Tariff Reviews that resulted in tariffs dropping an average of 18% throughout the country. This reduction affected Ampla and Coelce from the end of January to April 2013 (when the respective annual readjustments went into effect). In April 2014, ANEEL finalized its periodic tariff review of Ampla for the 2014-2019 period with retrospective effect at March 15, 2014. On March 1, 2015, through Resolution No. 1858/2015, Coelce had an extraordinary review when its rate increased by 10.28% for purposes of face the increases in charges (Energy Development Account - CDE) and the costs of energy purchase. The last periodic tariff review of Coelce was made in 2015 (the first of our distribution companies using the new fourth tariff cycle technology) for the 2015 – 2019 period, effective beginning on April 22, 2015. Such review was provisional as the methodologies of tariff review were not approved in time. The additional average increase in tariffs was 11.69% as approved under Resolution No. 1882/2015. In 2016, the final review will be calculated and the positive/negative differences from the application of the new methodology will be included in the 2016 adjustments. Ampla will begin to use the fourth tariff cycle methodology in its tariff review in March 2019; however, in March 2015 it has a final average increase of 37.3% (Resolution 1869/2015) essentially due to increases in Section A. 370 2015 Annual Report Enersis Finally, still in the scope of the fourth tariff cycle, on November 17, 2015, it was approved Chapter 2.3 of the Tariff Review Procedures related to the determination of the Basis for Remuneration, under which it was created a Database of Referential Prices to value certain variables of the basis for remuneration in the upcoming tariff reviews. ANEEL approved the results of the first periodic review of CIEN. Beginning on July 1, 2015, the rates were adjusted in minus 7.49%, as approved in Resolution No. 1902/2015. Colombia The Energy and Gas Regulatory Commission (Comisión de Regulación de Energía y Gas - CREG) is the entity that defines the method by which distribution networks are paid. Distribution charges are reviewed every five years and updated monthly according to the Producer Price Index (PPI). Currently, these charges include the new replacement value of all operational assets, the Administration, Operation and Maintenance (AOM) and non- electrical assets used in the distribution business. In Colombia, the current distribution charges for Codensa were published by the CREG in October 2009. Meanwhile, marketing charges were established in 1998. The review of regulated distribution charges began in 2013 with the publication of the assumptions for the remuneration methodology proposed by the CREG in Resolution 043 dated 2013. These assumptions were complemented by the development of the Purposes and Guidelines for Compensation of the Distribution Activity for the period 2015-2019 in resolution CREG 079 dated 2014. In February 2015, the CREG issued a proposal of Resolution 179 of 2014, which propose the methodology for remunerating the distribution activity. The methodology is based on a Regulated Revenue scheme. Annual revenues will be determined using a Regulated of Assets Net Basis (BRA) and a rate of return (to be defined in separate resolution) plus the Recovery of Invested Capital. Also, it is included an annual revenue for incentives to investments and expenditures efficiency and quality improvements. Additionally, the Regulatory Commission issued resolution CREG 095 dated 2015, where is defined the method for calculating the regulated remuneration tariff (WACC) for Electricity Transmission and Distribution, as well as for Natural Gas Transportation and Distribution. In relation to the regulated selling charge, in January 2015, the CREG issued Resolution 180 of 2014, where the methodology for calculating regulated selling charges was defined. The approval of a new basis selling cost for Codensa was conducted in December 2015 by Resolution CREG 120 and 191 of 2015 The Commission published resolution CREG 135 dated 2014 with regard to the pricing formula. This resolution establishes the assumptions on which studies were carried out to determine the unit cost formula for providing the service during the next tariff period. Peru As in Chile, a process takes place in Peru every four years to determine the VAD, also using a “model company” methodology for a typical area. In October 2013, the OSINERGMIN published Resolution 203/2013 setting Edelnor’s distribution tariffs from November 2013 to October 2017. 371 Consolidated Financial Statements4.2 Discontinued operations a) 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 1997). 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 Superintendency of Electricity and Fuels (Superintendencia de Electricidad y Combustible - SEC), 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 SEC, 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: the Sistema Interconectado Central (SIC), the Sistema 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: 372 2015 Annual Report Enersis (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 Gazette 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 is 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 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 stay 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 enough 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 September 29, 2014 a Tax Reform was published in the Official Gazette, 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 Gazette, 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. 373 Consolidated Financial Statements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. 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, 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. Unregulated Customers Market In Chile, distribution companies provide supply to regulated and unregulated customers. 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. Customers with capacity exceeding 5,000 kW by default unregulated customers. The 5,000 kW threshold became effective beginning on January 30, 2015. b) Tariff Revisions: In Chile, 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. On January 27, 2015, the Ministry of Energy published in the Official Gazette, Decree No. 9T, which established the node prices for energy supply that will be applied retrospectively, beginning on May 1, 2014. 374 2015 Annual Report Enersis On May 12, 2015, the Ministry of Energy published in the Official Gazette, Decrees No.2T and 3T, which established the node prices for energy supply that will be applied retrospectively, beginning on September 1 and October 1, 2014, respectively. On May 22, 2015, the Ministry of Energy published in the Official Gazette, Decree No. 9T, which established the node prices for energy supply that will be applied retrospectively, beginning on October 1, 2014. On June 23, 2015, the Ministry of Energy published in the Official Gazette, Decree No.12T, which established the node prices for energy supply that will be applied retrospectively, beginning on January 1, 2015. On August 4, 2015, the Ministry of Energy published in the Official Gazette, Decree No.15T, which established the node prices for energy supply that will be applied retrospectively, beginning on February 1, 2015. On November 4, 2015, the Ministry of Energy published in the Official Gazette, Decree No.16T, which established the node prices for energy supply that will be applied retrospectively, beginning on April 1, 2015. On December 26, 2015, the Ministry of Energy published in the Official Gazette, Decree No.21T, which established the node prices for energy supply that will be applied retrospectively, beginning on May 1, 2015. As a result of the above, our subsidiary Chilectra at December 31, 2015, recognized unbilled revenue and trade and other accounts receivable for the difference between current and effective Average Node Prices for ThCh$ 33,649,923 (ThCh$ 98,064,320 at December 31, 2014) to be billed and charge to regulated end-customers. In addition, at December 31, 2015, Chilectra recognized costs and trade and other payables for the difference between current and effective Short Term Node Prices for ThCh$31,959,398 (ThCh$22,750,995 at December 31, 2014) to be paid to generation companies. 5. Non-Current Assets or Disposal Groups Held For Sale or Held for Distribution to Owners and Discontinued Operations 5.1 Corporate Reorganization I. Background On April 28, 2015, the Company 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 (the “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. 375 Consolidated Financial StatementsSteps to carry out the reorganization: • The spin-off of Enersis, and its subsidiaries Empresa Nacional de Electricidad S.A. (“Endesa Chile”) and Chilectra S.A. (“Chilectra”) by separating, on one side their generation and distribution businesses in Chile and for other side the businesses outside of Chile; and • The subsequent merger of the entities having ownership interests in businesses outside of Chile namely Enersis Américas S.A., Endesa Américas S.A. and Chilectra Américas S.A. Enersis Américas would absorb by merger the other two entities. On December 18, 2015, at Enersis S.A.’s Extraordinary Shareholders Meeting it was approved the spin-off of the Company, which was conditioned on the approval of the spin-offs at each of the Extraordinary Shareholders Meetings of Endesa Chile and Chilectra, and also on the necessary legal formalities and other related matters. In addition, it was approved that the spin-off will be effective in the first business day of the following month that the public deed of compliance with the spin-off conditions is granted. As a result of Enersis’s spin-off a new public entity was created namely Enersis Chile S.A., to which was assigned the equity interests, assets and associated liabilities of Enersis’s businesses in Chile, including the equity interests in each of Endesa Chile and Chilectra Chile. On March 1, 2016, upon meeting all conditions including the capital decrease and modifications to the by-laws, the spin-off of Enersis became effective and Enersis S.A.’s corporate name was changed to Enersis Américas S.A. The new entity Enersis Chile was also incorporated on that date (See Note 41). II. Accounting Aspects As of December 31, 2015, upon compliance with the criteria in IFRS 5 – Non-Current Assets Held for Sale and Discontinued Operations, the following accounting treatment has been applied: i. Assets and liabilities As of December 31, 2015, all assets and liabilities related to the distribution and generation businesses in Chile have been classified as Non-current assets or disposal groups held for distribution to owners and as Liabilities associated with disposal groups held for distribution to owners, in accordance with the criteria described in Note 3.k. 376 2015 Annual Report Enersis As of December 31, 2015, the assets and liabilities related to the operations in Chile that have been classified as held for distribution to owners are as follows: CURRENT ASSETS Cash and cash equivalents Other current financial assets Other current non-financial assets Trade and other current receivables Current accounts receivable from related companies Inventories Current tax assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Other non-current financial assets Other non-current non-financial assets Trade and other non-current receivables Investments accounted for using the equity method Intangible assets other than goodwill Goodwill Property, plant and equipment Investment property Deferred tax assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS (*) CURRENT LIABILITIES Other current financial liabilities Trade and other current payables Current accounts payable to related companies Other current provisions Current tax liabilities Other current non-financial liabilities TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Other non-current financial liabilities Other non-current payables Non-current accounts payable to related companies Other non-current provisions Deferred tax liabilities Non-current provisions for employee benefits Other non-current non-financial liabilities TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES 12-31-2015 ThCh$ 144,261,845 16,313,194 3,984,943 596,364,468 23,611,569 42,616,615 20,306,212 847,458,846 21,750,452 4,769,885 14,392,223 45,716,371 42,879,326 887,257,655 3,429,167,797 8,150,987 22,392,339 4,476,477,035 5,323,935,881 12-31-2014 ThCh$ 27,921,725 554,915,972 55,238,930 16,329,195 15,119,789 6,120,658 675,646,269 917,197,790 6,034,216 97,186 56,116,140 235,101,356 55,023,456 435,689 1,270,005,833 1,945,652,102 377 Consolidated Financial Statements ii. Accumulated Other Comprehensive Income in Net Equity The accumulated other comprehensive income balance related to assets and liabilities held for distribution to owners are the following: Reserves originated from Exchange differences on translation Cash flow hedges Gains and losses on remeasuring available-for-sale financial instruments Other miscellaneous reserves Total iii. Revenue and expenses 12-31-2015 ThCh$ 12,423,692 (121,503,052) 14,835 7,736,853 (101,327,672) All revenues and expenses related to the distribution and generation businesses in Chile were classified as discontinued operations and presented under the caption “Income after tax from discontinued operations” in the consolidated statement of comprehensive income. The consolidated statement of comprehensive income presented for comparison purposes in these consolidated financial statements differ from those approved in years 2014 and 2013 due to the classification of revenues and expenses on those years as discontinued operation. The following table sets forth the breakdown by nature of the line item “Income after tax from discontinued operations” for the years ended December 31, 2015, 2014 and 2013: Statement of Income Revenue Other income Total Revenue 12-31-2015 ThCh$ 2,382,671,016 14,735,951 2,397,406,967 12-31-2014 ThCh$ 2,013,305,145 34,201,387 2,047,506,532 12-31-2013 ThCh$ 1,717,781,888 18,516,145 1,736,298,033 Raw materials and consumables used Contribution Margin (1,481,985,559) 915,421,408 (1,309,402,283) 738,104,249 (998,873,893) 737,424,140 Other work performed by the entity and capitalized Employee benefits expense Depreciation and amortization expense Reversal of impairment loss (impairment losses) recognized in profit or loss Other expenses Operating income 21,004,053 (136,554,721) (153,201,662) 21,505,568 (126,341,363) (128,437,154) 14,831,058 (120,113,902) (119,507,118) 3,054,903 (13,185,420) (8,212,948) (125,849,781) 523,874,200 (110,321,349) 381,324,531 (114,350,778) 390,070,452 Other gains Financial income Financial costs Share of profit (loss) of associates and joint ventures accounted for using the equity method Foreign currency exchange differences Profit from indexed assets and liabilities 20,055,745 15,270,169 (61,616,349) 70,893,263 14,762,515 (59,543,956) 14,527,737 13,510,732 (62,395,332) 8,905,045 (54,413,310) 24,309,344 (13,394,762) 4,839,077 (20,328,278) 15,263,623 (1,838,329) 1,593,046 Income before taxes Income tax expense, discontinued operations NET INCOME FROM DISCONTINUED OPERATIONS 497,933,125 (109,612,599) 388,320,526 347,958,388 (66,017,317) 281,941,071 379,777,650 (61,712,442) 318,065,208 Due to classification of generation and distribution of energy activities in Chile as discontinued operations, those lines of business are not included in Note 35. Information by segment. 378 2015 Annual Report Enersis iv. Cash flows The following table sets for the net cash flows from operating, investing and financing activities attributable to discontinued operations for the years ended December 31, 2015, 2014 and 2013: Statement of cash flows Net cash flows from (used in) operating activities Net cash flows from (used in) investing activities Net cash flows from (used in) financing activities Net increase (decrease) in cash and cash equivalents before effect of Exchange rate changes Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 12-31-2015 ThCh$ 576,531,527 (296,741,342) (273,442,450) 12-31-2014 ThCh$ 264,946,881 (188,738,471) (159,144,481) 12-31-2013 ThCh$ 442,960,531 (106,125,058) (216,411,065) 6,347,735 (82,936,071) 120,424,408 4,898,483 1,044,602 388,929 11,246,218 133,015,627 144,261,845 (81,891,469) 214,907,097 133,015,628 120,813,337 94,093,760 214,907,097 Appendix 4 to these consolidated financial statements shows supplementary information related to assets and liabilities held for distribution to owners, as well as the results from discontinued operations. 379 Consolidated Financial Statements5.2 Sale of Concesionaria Túnel El Melón S.A. In December 2014, Empresa Nacional de Electricidad S.A. and its subsidiary Compañía Eléctrica de Tarapacá S.A. 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 (See Note 31). 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. 380 2015 Annual Report Enersis The main items of assets, liabilities and cash flow held for sale as of December 31, 2014 for the aforementioned entity are as follows: ASSETS CURRENT ASSETS Cash and cash equivalents Other current non-financial assets Trade and other current receivables Current tax assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Intangible assets other than goodwill Property, plant and equipment Deferred tax assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Other current financial liabilities Trade and other current payables Other current non-financial liabilities TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Other non-current financial liabilities Non-current provisions for employee benefits Other non-current non-financial liabilities TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES Summary of net cash flows Net cash flows from (used in) operating activities Net cash flows from (used in) investment activities Net cash flows from (used in) financing activities Net increase (decrease) in cash and cash equivalents before effect of exchange rate changes Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Balance 12-31-2014 29,702 81,275 758,645 1,400 871,022 4,404,615 81,432 2,621,894 7,107,941 7,978,963 3,072,179 495,235 131,030 3,698,444 1,660,254 102,423 27,026 1,789,703 5,488,147 Balance 12-31-2014 9,045,775 (5,604,740) (3,450,774) (9,739) - (9,739) 39,440 29,701 381 Consolidated Financial Statements 6. Business combination – Acquisition of Gasatacama on April 22, 2014, 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 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 Group’s total generation capacity in Chile’s northern grid (the Sistema 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 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 consolidated income before taxes 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: Total price paid Transaction recorded separately from the assets acquired and liabilities assumed (i) Total consideration paid in cash ThCh$ 174,028,622 (16,070,521) 157,958,101 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 were recognized in 2014 under Income after tax from discontinued operations line in the consolidated statements of comprehensive income. 382 2015 Annual Report Enersis c) Identifiable assets acquired and identifiable liabilities assumed The following table summarizes the fair values recognized for assets acquired and liabilities assumed in connection with the acquisition: Identifiable assets acquired, net Cash and cash equivalents Trade and other current receivables Current accounts receivable from related companies Inventories Property, plant and equipment Deferred tax assets Other assets Trade and other current payables Current accounts payable to related companies Deferred tax liabilities Other liabilities Total Fair Value ThCh$ 120,303,339 34,465,552 5,692,257 15,009,265 199,660,391 2,392,531 23,906,126 (30,818,836) (34,445,277) (28,923,167) (10,874,817) 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 the 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. 383 Consolidated Financial Statementsd) Goodwill Total consideration paid Fair value of pre-existing interest in the acquiree Fair value of identifiable net assets acquired Goodwill (See Note 16) ThCh$ 157,958,101 157,147,000 (296,367,364) 18,737,737 The goodwill is attributable primarily to the value of the synergies expected to be obtained by integrating GasAtacama into the 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 Endesa Chile/Enersis Américas at the acquisition date, were reclassified to profit or loss, resulting in a gain of ThCh$ 21,006,456. Both amounts were recognized in year 2014, under Income after tax from discontinued operations line in the consolidated statement of comprehensive income. As of December 31, 2015, the assets and liabilities of GasAtacama have been classified as held for distribution to owners. Likewise, the results of its operations for the years 2015, 2014 and 2013 have been classified as discontinued operations. (See Note 3.k and 5.1) 384 2015 Annual Report Enersis 7. Capital increase the Enersis Américas 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 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 Américas via cash payments of ThCh$ 1,121,458,393, which included an Allocated capital of ThCh$ 1,460,503. Endesa’s contribution was made by transferring all of its shares in Cono Sur Participaciones, S.L., so that all of that corporation’s assets and liabilities, representing holdings in Chile, Argentina, Brazil, Colombia and Peru, were incorporated into Enersis Américas. The following table summarizes the ownership interests contributed by Endesa, S.A.: i) Contributions in companies that Enersis Américas controlled before the transaction: Company Empresa Distribuidora Sur S.A. Enel Brasil S.A. Ampla Energía y Servicos S.A. Ampla Investimentos y Servicos S.A. Compañía Eléctrica San Isidro S.A. Emgesa S.A. E.S.P. Codensa S.A. E.S.P. Inversiones Distrilima S.A. Percentage contributed 6.23% 28.48% 7.70% 7.70% 4.38% 21.60% 26.66% 34.83% These contributions were recorded using the accounting criteria established in Note 2.6.6, and resulted in a charge of ThCh$947,982,284 to other miscellaneous reserves in Enersis Américas’ Net equity. This amount is the difference between the economic and accounting values of the ownership interests transferred by Endesa, S.A. on the date of the transaction. Components of other comprehensive income have also been redistributed as needed, with an additional ThCh$ 41,885,724 charged to other miscellaneous reserves and credited to Reserve for exchange differences on translation. This redistribution, based on the prorated ownership interests contributed by Endesa, S.A., has assigned to the Enersis Américas shareholders their share of Reserve for differences in translation that, prior to the transaction, was assigned to non-controlling interests. 385 Consolidated Financial Statements ii) Contributions in companies that Enersis Américas did not control or in which it did not hold an ownership interest prior to the transaction: Company Eléctrica Cabo Blanco S.A.C. Endesa Cemsa S.A. Generalima S.A.C. Empresa Eléctrica de Piura S.A. Inversora Dock Sud S.A. Central Dock Sud S.A. Yacylec S.A. Percentage contributed (directly and indirectly) 100.00% 55,00% 100,00% 96.50% 57.14% 39.99% 22.22% These contributions were recorded using the accounting criteria established in Note 2.6.6 and resulted in a ThCh$ 92,011,899 credit to other miscellaneous reserves in Enersis Américas’ Net equity. The amount is the difference between the economic and accounting values of the ownership interests transferred by Endesa, S.A. on the date of the transaction. The following table summarizes the effects of the capital increase on the Enersis Américas’ Consolidated Statement of Financial Position on the date of the transaction: Cash Contribution ThCh$ 1,121,458,393 - Contribution in companies previously controlled ThCh$ - - Contribution in companies not previously controlled or in which a stake was not held ThCh$ Total as of March 31, 2013 ThCh$ 189,506,588 1,310,964,981 161,105,666 161,105,666   ASSETS Current assets Non-current assets TOTAL ASSETS 1,121,458,393 - 350,612,254 1,472,070,647   LIABILITIES Current liabilities Non-current liabilities TOTAL LIABILITIES - - - - - - 180,637,894 54,241,781 180,637,894 54,241,781 234,879,675 234,879,675   EQUITY Capital increase Share premium for capital increase (other Reserves) Other miscellaneous reserves Foreign currency translation differences 1,119,997,890 1,692,613,860 31,786,140 2,844,397,890 1,460,503 - - 1,460,503 - - (989,868,008) 41,885,724 92,011,899 - (897,856,109) 41,885,724 Equity attributable to shareholders of Enersis Américas 1,121,458,393 744,631,576 123,798,039 1,989,888,008 Non-controlling interests - (744,631,576) (8,065,460) (752,697,036) TOTAL EQUITY 1,121,458,393 TOTAL LIABILITIES AND EQUITY 1,121,458,393 - - 115,732,579 1,237,190,972 350,612,254 1,472,070,647 386 2015 Annual Report Enersis                               Share issuance costs as of December 31, 2013 amounted to ThCh$ 23,592,387 and, as indicated in Note 3.t), were recorded in “Other miscellaneous reserves” (see Note 26.5.c.2). During the 2013 fiscal year the amount of net income attributable to shareholders of Enersis Américas from the ownership interest acquired was ThCh$ 126,280,714. 8. Cash and cash equivalents a) The detail of cash and cash equivalents as of December 31, 2015 and 2014 is as follows: Cash and Cash Equivalents Cash balances Bank balances Time deposits Other fixed-income instruments Total Balance at 12-31-2015 ThCh$ 7,718,308 194,453,214 573,985,007 409,006,815 1,185,163,344 12-31-2014 ThCh$ 1,264,361 283,305,826 922,909,741 497,265,563 1,704,745,491 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 resale agreements maturing in 90 days or less from the date of investment. There are no restrictions for significant amounts of cash availability. b) The detail of cash and cash equivalents by currency is as follows: Currency Chilean peso Argentine peso Colombian peso Brazilian real Peruvian nuevo sol U.S. dollar Total 12-31-2015 ThCh$ 835,468,993 44,883,600 156,731,922 91,204,686 34,749,661 22,124,482 1,185,163,344 12-31-2014 ThCh$ 687,912,363 29,065,256 357,337,537 197,723,752 105,282,911 327,423,672 1,704,745,491 c) The following table shows the amounts paid to obtain control of subsidiaries as of December 31, 2015 and 2014: Acquisition of Subsidiaries Acquisitions paid in cash and cash equivalents Cash and cash equivalents in entities acquired Total, net (*) (*) See Note 6. 12-31-2015 ThCh$ - - - 12-31-2014 ThCh$ (157,958,101) 120,303,339 (37,654,762) 387 Consolidated Financial Statements 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 December 31, 2015 and 2014: Cash and cash equivalents (statement of financial position) Cash and cash equivalents attributable to assets held for sale (*) Cash and cash equivalents attributable to assets held for distribution to owners (*) Cash and cash equivalents (statement of cash flows) (*) See Note 5.1.d) and 5.2. Balance at 12-31-2015 ThCh$ 1,185,163,344 Balance at 12-31-2014 ThCh$ 1,704,745,491 - 29,702 144,261,845 - 1,329,425,189 1,704,775,193 e) The following amounts have been received from the sale of shares in subsidiaries: Loss of control at Subsidiaries Amounts received for the sale of subsidiaries(*) Amounts in cash and cash equivalents in entities sold Total net (*) See Note 2.4.1 and 5.1 iv). Balance at 12-31-2015 ThCh$ 25,000,000 (18,360,347) 6,639,653 Balance at 12-31-2014 ThCh$ 57,173,142 (16,311,571) 40,861,571 388 2015 Annual Report Enersis 9. Other financial assets The detail of other financial assets as of December 31, 2015 and 2014 is as follows: Other Financial Assets Balance at Available-for-sale financial investments - unquoted equity securities or with limited liquidity Available-for-sale financial investments - quoted equity securities Available-for-sale financial investments IFRIC 12 (*)(**) Financial assets held to maturity (*) Hedging derivatives (*) Financial assets at fair value through profit or loss (*) Non-hedging derivatives (*) Current Non-current 12-31-2015 ThCh$ 12-31-2014 ThCh$ 12-31-2015 ThCh$ 12-31-2014 ThCh$ - - - - - - 616,296 4,275,183 - 31,044 487,893,679 492,923,605 27,195,496 1,172,125 38,301,763 1,414,588 39,673 978,556 26,340,396 7,229,290 35,467,539 52,677,337 4,427,286 7,061,715 - - - 22,002 Total 68,262,446 99,455,403 489,528,204 530,821,520 (*) See Note 22.1.a The amounts included in “financial assets held to maturity” and “financial assets at fair value through 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). (**) On September 11, 2012, the Brazilian government issued Temporary Law 579, which became permanent on January 13, 2013 and directly affects companies holding electric power generation, transmission, and distribution concessions, including Ampla and Coelce. Among its provisions, this legislation establishes that the government, as concession grantor, will use the Valor Nuevo de Reemplazo (VNR, New Replacement Value) to make the corresponding indemnity payments to the concessionaires for those assets that have not been amortized at the end of the concession period. Every month the distributors adjust the book value of the financial asset, by calculating the present value of estimated cash flows, using the effective interest rate on the corresponding payment at the end of the concession. As a result of this new development, the subsidiaries have changed how they measure and classify the amounts they expect to recover in compensation when the concession period ends. The previous approach was based on the historic cost of the investments, and the rights to compensation were recorded as an account receivable. Currently, they are measured on the basis of the VNR, and the compensation rights are classified as financial assets available for sale (see Note 3.g). 389 Consolidated Financial Statements10. Trade and other receivables a) The detail of trade and other receivables as of December 31, 2015 and 2014 is as follows: Balance at 12-31-2015 12-31-2014 Trade and Other Receivables, Gross Trade and other receivables, gross Trade receivables, gross Other receivables, gross (1) Trade and other receivables, net Trade and other receivables, net Trade and other receivables, net Other receivables, net (1) Current ThCh$ Non-current ThCh$ 1,389,215,812 398,695,864 1,054,529,912 334,685,900 Non-current ThCh$ 1,844,027,889 291,641,675 257,022,423 1,275,999,654 202,932,480 88,709,195 568,028,235 141,673,441 Current ThCh$ Balance at 12-31-2015 12-31-2014 Current ThCh$ Non-current ThCh$ Non-current ThCh$ 1,088,131,567 398,695,864 1,681,686,903 291,641,675 1,120,897,826 202,932,480 88,709,195 754,571,268 333,560,299 257,022,423 141,673,441 Current ThCh$ 560,789,077 (1) Includes as of December 31, 2015, mainly accounts receivable related to loans and advances to employees for ThCh$ 14,081,204 (ThCh$ 31,042,105 as of December 31, 2014); Resolution 250/13 (applicable in Argentina) on the Cost Monitoring Mechanism (MMC) adjustment for ThCh$ 0 (ThCh$ 253,484,218 as of December 31, 2014); Resolution SE 32/2015 (applicable in Argentina) for ThCh$ 28,174,339 (ThCh$ 0 as of December 31, 2014)(See Note 4.2); Recoverable taxes (VAT) of ThCh$ 80,412,497 (ThCh$ 157,439,993 as of December 31, 2014); and Accounts receivable at our Brazilian subsidiaries Ampla and Coelce, following the signing of the addendum to the concession contracts where the outstanding assets are recoverable and/or can be offset in subsequent tariff periods for ThCh$ 150,798,761 (ThCh$ 150,387,462 as of December 31, 2014), which are guaranteed by the Brazilian government. There are no significant trade and other receivables balances held by the Group that are not available for its use. The Group does not have customers to which it has sales representing 10% or more of its operating income for the years ended December 31, 2015 and 2014. Refer to Note 11.1 for detailed information on amounts, terms and conditions associated with accounts receivable from related companies. 390 2015 Annual Report Enersis b) As of December 31, 2015 and 2014, the balance of past due but not impaired trade receivables is as follows: Trade Receivables Past Due But Not Impaired Less than three months Between three and six months Between six and twelve months More than twelve months Total Balance at 12-31-2015 ThCh$ 117,895,535 25,783,187 28,220,570 7,034,592 178,933,884 Balance at 12-31-2014 ThCh$ 152,844,247 14,297,179 63,606,398 51,972,887 282,720,711 c) The reconciliation of changes in the allowance for impairment of trade receivables is as follows: Trade Receivables Past Due and Impaired Balance at January 1, 2014 Increases (decreases) for the year (*) Amounts written off Foreign currency translation differences Balance at December 31, 2014 Increases (decreases) for the year (*) Amounts written off Foreign currency translation differences Other Transfer to assets held for distribution to owners Balance at December 31, 2015 (*) See Note 30 for impairment losses of financial assets. Current and Non-current ThCh$ 156,868,268 22,848,140 (19,013,041) 1,637,619 162,340,986 46,890,017 23,480,578 (43,623,000) 147,873,154 (35,877,490) 301,084,245 The increase in the allowance for impairment of trade receivables, related to continuing operations of Enersis Américas, was ThCh$ 39,779,710 during the year 2015. 391 Consolidated Financial Statements Write-offs for bad debt Past-due debt is written off once all collection measures 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 of procedures for the few cases that arise in each country. In our distribution business, considering the differences in each country, the process takes at least six months in Argentina and Brazil, 12 months in Colombia and Peru, and 24 months in Chile. Overall, the risk of bad debt, and therefore the risk of writing off our trade receivables, is limited (see Notes 3.g.3 and 21.5). d) Additional information: • Additional statistical information required under Official Bulletin 715 of the Superintendencia de Valores y Seguros de Chile (Chilean Superintendency of Securities and Insurance), of February 3, 2012 (XBRL Taxonomy). See Appendix 7. • Supplementary information on Trade Receivables, see Appendix 7.1. 392 2015 Annual Report Enersis 11. Balances and transactions with related companies Related party transactions are performed at current market conditions. Transactions between the Company and its subsidiaries and joint ventures have been eliminated on consolidation 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 Américas is the Italian corporation Enel S.p.A. 11.1 Balances and transactions with related companies The balances of accounts receivable and payable between the Company and its non-consolidated related companies are as follows: 393 Consolidated Financial Statementsa) Receivables from related companies Taxpayer ID No. (RUT) Foreign Foreign Foreign Foreign Foreign 96.524.140-K 96.880.800-1 Foreign Foreign Foreign Foreign Foreign Foreign 96.806.130-5 76.788.080-4 Country Company Spain Enel Latinoamérica S.A Spain Enel Latinoamérica S.A Spain Endesa Spain Spain Endesa Spain Spain Endesa Spain Chile Empresa Eléctrica Panguipulli S.A.(*) Chile Empresa Eléctrica Puyehue S.A. (*) Endesa Energía S.A. Spain Endesa Operaciones y Servicios Comerciales Spain SACME Enel Iberoamérica S.R.L Enel Iberoamérica S.R.L. Enel Iberoamérica S.R.L. Electrogas S.A.(*) GNL Quintero S.A. (*) Argentina Spain Spain Spain Chile Chile Currency Relationship Common Immediate Parent CH$ Common Immediate Parent Ar$ Common Immediate Parent CH$ Common Immediate Parent CP Common Immediate Parent Euros Common Immediate Parent CH$ Common Immediate Parent CH$ Common Immediate Parent CP Common Immediate Parent CP Ar$ Associate CH$ Parent CP Parent Euros Parent CH$ Associate CH$ Associate 76.418.940-k GNL Chile S.A. (*) Chile Associate US$ Advance natural gas 76.418.940-k 76.418.940-k Foreign Foreign Foreign Foreign Foreign Foreign 76.126.507-5 Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Chile Chile Colombia Colombia Spain Spain Italy Italy Chile Italy Italy Italy Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil GNL Chile S.A. (*) GNL Chile S.A. (*) Empresa de Energía de Cundinamarca S.A. Empresa de Energía de Cundinamarca S.A. Endesa Generación Endesa Generación Enel Ingegneria e Ricerca Enel Trade S.p.A. Parque Eolico Talinay Oriente SA(*) Enel S.p.A. Enel S.p.A. Enel S.p.A. Enel Green Power Cristal Eolica Enel Green Power Emiliana Eolica Sa Enel Green Power Joana Eolica Sa Enel Green Power Modelo I Eolica SA Enel Green Power Modelo II Eolica SA Enel Green Power Primavera Eolica Enel Green Power SAO Judas Eolica Enel Green Power Tacaicó Eólica Sa Enel Green Power Pedra Do Gerônimo Eólic Enel Green Power Pau Ferro Eólica Sa Energía Nueva Energía Limpia Mexico S.R.L Mexico Enel Green Power Colombia Enel Green Power Participaçôes Ltda. Enel Soluçôes Energeticas Enel Green Power Maniçoba Enel Green Power Esperanca Enel Green Power Damascena Enel Italia Servizi SRL Colombia Brazil Brazil Brazil Brazil Brazil Italy US$ US$ CP CP Associate Associate Joint Venture Joint Venture Common Immediate Parent CH$ Common Immediate Parent CH$ Common Immediate Parent CH$ Common Immediate Parent CH$ Common Immediate Parent CH$ CH$ Parent Euros Parent CP Parent Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent CH$ Common Immediate Parent CP Common Immediate Parent US$ Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent CP Current 12-31-2015 ThCh$ No Current 12-31-2015 ThCh$ 12-31-2014 ThCh$ 355,485 486,605 Commodity derivatives Less than 90 days Description of Transaction Other services Dividends Other services Other services Other services Energy sales Energy sales Other services Other services Other services Other services Other services Other services Dividends Energy sales purchases Other services Loans Energy sales Other services Other services Other services Other services Energy sales Other services Other services Other services Tolls Tolls Tolls Tolls Tolls Tolls Tolls Tolls Tolls Tolls Other services Other services Other services Other services Other services Other services Other services Other services Term of Transaction Less than 90 days Less than 90 days More than 90 days More than 90 days More than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days 12-31-2014 ThCh$ 108,438 15,713 61,852 - - 273,705 64 26,514 78,172 47,811 846,807 - 1,477,177 649,986 11,845,926 1,644,650 549,359 513,804 130,431 36,067 99,662 10,299 3,256 21,647 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 13,077 28,628 5,833 30,373 114,758 42,003 3,276 931,267 553,472 216,682 36,067 99,972 145,858 116,940 343 460 460 538 469 344 341 263 429 429 54 626 585 624 15,306 978,185 21,454 207,814 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (*) As of December 31, 2015, the receivable balances have been classified in the statement of financial position as non-current assets or disposal groups held for sale or held for distribution to owners. Total 3,566,930 18,441,340 355,485 486,605 394 2015 Annual Report Enersis a) Receivables from related companies Taxpayer ID No. (RUT) Company Country Relationship Currency Empresa de Energía de Cundinamarca S.A. Empresa de Energía de Cundinamarca S.A. Colombia Colombia Joint Venture Joint Venture Endesa Operaciones y Servicios Comerciales Spain Common Immediate Parent CP Argentina Associate 96.524.140-K Empresa Eléctrica Panguipulli S.A.(*) 96.880.800-1 Empresa Eléctrica Puyehue S.A. (*) Enel Latinoamérica S.A Enel Latinoamérica S.A Endesa Spain Endesa Spain Endesa Spain Endesa Energía S.A. SACME Enel Iberoamérica S.R.L Enel Iberoamérica S.R.L. Enel Iberoamérica S.R.L. 96.806.130-5 Electrogas S.A.(*) 76.788.080-4 GNL Quintero S.A. (*) 76.418.940-k GNL Chile S.A. (*) 76.418.940-k 76.418.940-k GNL Chile S.A. (*) GNL Chile S.A. (*) 76.126.507-5 Parque Eolico Talinay Oriente SA(*) Endesa Generación Endesa Generación Enel Ingegneria e Ricerca Enel Trade S.p.A. Enel S.p.A. Enel S.p.A. Enel S.p.A. Enel Green Power Cristal Eolica Enel Green Power Emiliana Eolica Sa Enel Green Power Joana Eolica Sa Enel Green Power Modelo I Eolica SA Enel Green Power Modelo II Eolica SA Enel Green Power Primavera Eolica Enel Green Power SAO Judas Eolica Enel Green Power Tacaicó Eólica Sa Enel Green Power Pedra Do Gerônimo Eólic Enel Green Power Pau Ferro Eólica Sa Enel Green Power Participaçôes Ltda. Enel Soluçôes Energeticas Enel Green Power Maniçoba Enel Green Power Esperanca Enel Green Power Damascena Enel Italia Servizi SRL Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Spain Spain Spain Spain Spain Chile Chile Spain Spain Spain Spain Chile Chile Chile Chile Chile Spain Spain Italy Italy Chile Italy Italy Italy Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Italy Total Common Immediate Parent CH$ Common Immediate Parent Ar$ Common Immediate Parent CH$ Common Immediate Parent CP Common Immediate Parent Euros Common Immediate Parent CH$ Common Immediate Parent CH$ Common Immediate Parent CP Ar$ CH$ CP Euros CH$ CH$ US$ US$ US$ CP CP CH$ Euros CP Parent Parent Parent Associate Associate Associate Associate Associate Parent Parent Parent Common Immediate Parent CH$ Common Immediate Parent CH$ Common Immediate Parent CH$ Common Immediate Parent CH$ Common Immediate Parent CH$ Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent US$ Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent CP Energía Nueva Energía Limpia Mexico S.R.L Mexico Common Immediate Parent CH$ Enel Green Power Colombia Colombia Common Immediate Parent CP Current No Current Description of Transaction Other services Dividends Other services Other services Other services Energy sales Energy sales Other services Other services Other services Other services Other services Other services Dividends Energy sales Advance natural gas purchases Other services Loans Energy sales Other services Other services Commodity derivatives Other services Other services Energy sales Other services Other services Other services Tolls Tolls Tolls Tolls Tolls Tolls Tolls Tolls Tolls Tolls Other services Other services Other services Other services Other services Other services Other services Other services Term of Transaction Less than 90 days Less than 90 days More than 90 days More than 90 days More than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days 12-31-2015 ThCh$ - - 13,077 28,628 5,833 - - 30,373 114,758 42,003 - 3,276 931,267 - - 12-31-2014 ThCh$ 108,438 15,713 61,852 - - 273,705 64 26,514 78,172 47,811 846,807 - 1,477,177 649,986 - 11,845,926 - - 553,472 216,682 36,067 - - - - 99,972 145,858 116,940 343 460 460 538 469 344 341 263 429 429 15,306 978,185 21,454 54 626 585 624 207,814 1,644,650 549,359 513,804 130,431 36,067 99,662 10,299 3,256 21,647 - - - - - - - - - - - - - - - - - - - - - 12-31-2015 ThCh$ - - - - - - - - - 355,485 - 12-31-2014 ThCh$ - - - - - - - - - 486,605 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (*) As of December 31, 2015, the receivable balances have been classified in the statement of financial position as non-current assets or disposal groups held for sale or held for distribution to owners. 3,566,930 18,441,340 355,485 486,605 395 Consolidated Financial Statementsb) Accounts payable to related companies Taxpayer ID No. (RUT) Foreign Foreign Foreign 96.524.140-K Foreign 96.806.130-5 76.418.940-k Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign 77.017.930-0 Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Company Enel Latinoamérica S.A Enel Latinoamérica S.A Enel Latinoamérica S.A. Empresa Electrica Panguipulli S.A. (*) SACME Electrogas S.A.(*) GNL Chile S.A. (*) Endesa Generación Endesa Generación Endesa Generación Enel Iberoamérica SRL Enel Iberoamérica SRL Enel Iberoamérica SRL Enel Iberoamérica SRL Enel Iberoamérica SRL Enel Iberoamérica SRL Enel Iberoamérica SRL Enel Iberoamérica SRL Enel Distribuzione Enel Distribuzione Enel Produzione Enel Produzione Enel Ingegneria e Ricerca Enel Ingegneria e Ricerca Enel Ingegneria e Ricerca Transmisora Eléctrica de Quillota Ltda. (*) Empresa de Energía de Cundinamarca S.A. Enel Green Power Spain SL Endesa Spain Endesa Spain Parque Eolico Cristal Enel S.p.A. Enel S.p.A. Enel S.p.A. Enel S.p.A. Enel Green Power Emiliana Eolica Sa Enel Green Power Joana Eolica Sa Enel Green Power Modelo I Eolica SA Enel Green Power Modelo II Eolica SA Enel Green Power Tacaicó Enel Green Power Pedra Do Gerônimo Eólic Enel Green Power Pau Ferro Eólica Sa Enel Italia Servizi SRL Enel Italia Servizi SRL Enel Green Power Desenvolvimiento Ltda Enel Green Power Brasil Enel Green Power Italia Country Spain Spain Spain Chile Argentina Chile Chile Spain Spain Spain Spain Spain Spain Spain Spain Spain Spain Spain Italy Italy Italy Italy Italy Italy Italy Chile Colombia Spain Spain Spain Brazil Italy Italy Italy Italy Brazil Brazil Brazil Brazil Brazil Brazil Brazil Italy Italy Brazil Brazil Italy Total Currency Relationship Common Immediate Parent Ar$ Common Immediate Parent CH$ Common Immediate Parent CP Common Immediate Parent CH$ Ar$ Associate CH$ Associate US$ Associate Common Immediate Parent CH$ Common Immediate Parent CH$ Common Immediate Parent CH$ CH$ Parent CP Parent CH$ Parent Euros Parent Real Parent Sol Parent Ar$ Parent Parent US$ Common Immediate Parent CH$ Common Immediate Parent CP Common Immediate Parent CH$ Common Immediate Parent CP Common Immediate Parent CH$ Common Immediate Parent CP Common Immediate Parent Real CH$ Joint Venture Joint Venture CP Common Immediate Parent CH$ Common Immediate Parent CH$ Common Immediate Parent Euros Common Immediate Parent CH$ Real Parent Euros Parent Euros Parent Parent CP Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent CH$ Common Immediate Parent Euros Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent CP (*) As of December 31, 2015, the payable balances have been classified in the statement of financial position as non-current assets or disposal groups held for sale or held for distribution to owners. Current No Current 12-31-2015 12-31-2014 12-31-2015 ThCh$ 12-31-2014 ThCh$ 58,897,984 73,806,006 Description of Transaction Dividends Dividends Other services Energy purchases Other services Other services Term of Transaction Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Natural gas purchases Less than 90 days Fuel purchases Other services Less than 90 days Less than 90 days Commodity derivatives Less than 90 days Dividends Other services Other services Other services Other services Other services Other services Other services Other services Other services Other services Other services Other services Other services Other services Other services Energy purchases Other services Other services Other services Energy purchases Other services Other services Other services Other services Energy purchases Energy purchases Energy purchases Energy purchases Energy purchases Energy purchases Energy purchases Other services Other services Other services Other services Other services Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days ThCh$ 59,416 40,920 161,015 28,617 29,658,243 302,025 414,397 384,082 173,687 194,151 184,373 1,513,001 192,920 - - - - - - - - - - - - - - - 74,089 12,027,207 2,841,305 9,039 59,242 152,859 110,781 234,876 157,329 72,411 183,859 195,699 - 82,220 286,224 19,140 64,546 ThCh$ 77,779 1,708,804 163,661 335,962 19,808,375 2,881,032 - - 1,102,253 37,165,229 25,746 296,242 305,654 41,136 9,900 68,371 767,673 73,730 415,824 99,837 - 2,024,190 243,076 553,346 157,762 23,982 129,492 365,620 - - - - - - - - - - - - - - - - - 1,121,851 1,029,940 109,897,508 143,680,622 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 396 2015 Annual Report Enersis b) Accounts payable to related companies Taxpayer ID No. (RUT) Company Foreign Foreign Foreign Enel Latinoamérica S.A Enel Latinoamérica S.A Enel Latinoamérica S.A. Country Relationship Currency Common Immediate Parent Ar$ Common Immediate Parent CH$ Common Immediate Parent CP Common Immediate Parent CH$ 96.524.140-K Empresa Electrica Panguipulli S.A. (*) Foreign SACME 96.806.130-5 Electrogas S.A.(*) 76.418.940-k GNL Chile S.A. (*) Argentina Associate Associate Associate Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Endesa Generación Endesa Generación Endesa Generación Enel Iberoamérica SRL Enel Iberoamérica SRL Enel Iberoamérica SRL Enel Iberoamérica SRL Enel Iberoamérica SRL Enel Iberoamérica SRL Enel Iberoamérica SRL Enel Iberoamérica SRL Enel Distribuzione Enel Distribuzione Enel Produzione Enel Produzione Enel Ingegneria e Ricerca Enel Ingegneria e Ricerca Enel Ingegneria e Ricerca Enel Green Power Spain SL Endesa Spain Endesa Spain Parque Eolico Cristal Enel S.p.A. Enel S.p.A. Enel S.p.A. Enel S.p.A. Enel Green Power Emiliana Eolica Sa Enel Green Power Joana Eolica Sa Enel Green Power Modelo I Eolica SA Enel Green Power Modelo II Eolica SA Enel Green Power Tacaicó Enel Green Power Pedra Do Gerônimo Eólic Enel Green Power Pau Ferro Eólica Sa Enel Italia Servizi SRL Enel Italia Servizi SRL Enel Green Power Brasil Enel Green Power Italia Enel Green Power Desenvolvimiento Ltda Spain Spain Spain Chile Chile Chile Spain Spain Spain Spain Spain Spain Spain Spain Spain Spain Spain Italy Italy Italy Italy Italy Italy Italy Spain Spain Spain Brazil Italy Italy Italy Italy Brazil Brazil Brazil Brazil Brazil Brazil Brazil Italy Italy Brazil Brazil Italy Total Ar$ CH$ US$ CH$ CP CH$ Euros Real Sol Ar$ US$ CH$ CP Real Euros Euros CP Common Immediate Parent CH$ Common Immediate Parent CH$ Common Immediate Parent CH$ Parent Parent Parent Parent Parent Parent Parent Parent Parent Parent Parent Parent Common Immediate Parent CH$ Common Immediate Parent CP Common Immediate Parent CH$ Common Immediate Parent CP Common Immediate Parent CH$ Common Immediate Parent CP Common Immediate Parent Real Common Immediate Parent CH$ Common Immediate Parent CH$ Common Immediate Parent Euros Common Immediate Parent CH$ Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent CH$ Common Immediate Parent Euros Common Immediate Parent Real Common Immediate Parent Real Common Immediate Parent CP 77.017.930-0 Transmisora Eléctrica de Quillota Ltda. (*) Chile Empresa de Energía de Cundinamarca S.A. Colombia Joint Venture Joint Venture (*) As of December 31, 2015, the payable balances have been classified in the statement of financial position as non-current assets or disposal groups held for sale or held for distribution to owners. Description of Transaction Dividends Dividends Other services Energy purchases Other services Other services Natural gas purchases Fuel purchases Other services Commodity derivatives Dividends Other services Other services Other services Other services Other services Other services Other services Other services Other services Other services Other services Other services Other services Other services Other services Energy purchases Other services Other services Other services Energy purchases Other services Other services Other services Other services Energy purchases Energy purchases Energy purchases Energy purchases Energy purchases Energy purchases Energy purchases Other services Other services Other services Other services Other services Term of Transaction Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Less than 90 days Current No Current 12-31-2015 ThCh$ 59,416 58,897,984 40,920 - 161,015 - - - 28,617 - 29,658,243 302,025 - 414,397 384,082 - 173,687 - - 194,151 - 184,373 1,513,001 192,920 - - 1,121,851 - - 74,089 - 12,027,207 2,841,305 9,039 59,242 152,859 110,781 234,876 157,329 72,411 183,859 195,699 - 82,220 286,224 19,140 64,546 12-31-2014 ThCh$ 77,779 73,806,006 - 1,708,804 163,661 335,962 19,808,375 2,881,032 - 1,102,253 37,165,229 25,746 296,242 305,654 41,136 9,900 68,371 767,673 73,730 415,824 99,837 - 2,024,190 243,076 553,346 157,762 1,029,940 23,982 129,492 - 365,620 - - - - - - - - - - - - - - - - 12-31-2015 ThCh$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 12-31-2014 ThCh$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 109,897,508 143,680,622 - - 397 Consolidated Financial Statementsc) Significant transactions and effects on income/ expenses Transactions with related companies that are not consolidated and their effects on profit or loss are as follows: Taxpayer ID No. (RUT) Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign 76.418.940-k 76.418.940-k 76.418.940-k 76.418.940-k 76.788.080-4 76.788.080-4 76.788.080-4 Foreign 96.880.800-1 96.880.800-1 96.880.800-1 96.524.140-K 96.524.140-K 96.524.140-K 96.524.140-K Foreign Foreign 96.806.130-5 96.806.130-5 Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign 76.652.400-1 76.652.400-1 76.014.570-K 76.014.570-K 76.014.570-K 76.014.570-K 76.014.570-K 77.017.930-0 Foreign Foreign Foreign Foreign Foreign Foreign 76.321.458-3 76.321.458-3 76.321.458-3 76.321.458-3 Company Endesa Energía S.A. Endesa Energía S.A. Enel Latinoamérica S.A Enel Latinoamérica S.A Endesa Generación Endesa Generación Endesa Generación Endesa Generación GNL Chile S.A. (*) GNL Chile S.A. (*) GNL Chile S.A. (*) GNL Chile S.A. (*) GNL Quintero S.A. (*) GNL Quintero S.A. (*) GNL Quintero S.A. (*) SACME Empresa Eléctrica Puyehue S.A. (*) Empresa Eléctrica Puyehue S.A. (*) Empresa Eléctrica Puyehue S.A. (*) Empresa Eléctrica Panguipulli S.A. (*) Empresa Eléctrica Panguipulli S.A. (*) Empresa Eléctrica Panguipulli S.A. (*) Empresa Eléctrica Panguipulli S.A. (*) Enel Iberoamérica S.R.L. Enel Iberoamérica S.R.L. Electrogas S.A. (*) Electrogas S.A. (*) Endesa Operaciones y Servicios PH Chucas Costa Rica Enel Ingegneria Ricerca Enel Ingegneria Ricerca Empresa de Energía de Cundinamarca S.A. Empresa de Energía de Cundinamarca S.A. Empresa de Energía de Cundinamarca S.A. Empresa de Energía de Cundinamarca S.A. Empresa de Energía de Cundinamarca S.A. Centrales Hidroeléctricas de Aysen S.A. (*) Centrales Hidroeléctricas de Aysen S.A. (*) Inversiones GasAtacama Holding Ltda. (1) (*) Inversiones GasAtacama Holding Ltda. (1) (*) Inversiones GasAtacama Holding Ltda. (1) (*) Inversiones GasAtacama Holding Ltda. (1) (*) Inversiones GasAtacama Holding Ltda. (1) (*) Transmisora Eléctrica de Quillota Ltda. (*) Endesa Spain Endesa Spain Compañía Energética Veracruz S.A.C. Enel Trade SpA Enel Trade SpA Enel Trade SpA Sociedad Almeyda Solar SpA(*) Sociedad Almeyda Solar SpA(*) Sociedad Almeyda Solar SpA(*) Sociedad Almeyda Solar SpA(*) Country Spain Spain Spain Spain Spain Spain Spain Spain Chile Chile Chile Chile Chile Chile Chile Argentina Chile Chile Chile Chile Chile Chile Chile Spain Spain Chile Chile Spain Costa Rica Italy Italy Colombia Colombia Colombia Colombia Colombia Chile Chile Chile Chile Chile Chile Chile Chile Spain Spain Peru Italy Italy Italy Chile Chile Chile Chile Relationship Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Associate Associate Associate Associate Associate Associate Associate Associate Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Parent Parent Associate Associate Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent 398 2015 Annual Report Enersis Description of Transaction Other operating income Natural gas sales Interest on financial debt Other fixed operating expenses Fuel consumption Other fixed operating expenses Other operating income Commodity derivatives Natural gas consumption Natural gas transportation Other services rendered Other financial income Energy sales Electricity tolls Other services rendered Outsourced services Energy purchases Electricity tolls Energy sales Energy purchases Electricity tolls Other services rendered Energy sales Other fixed operating expenses Other operating income Other fixed operating expenses Gas tolls Fuel consumption Other operating income Other services rendered Other services rendered Energy sales Other operating income Other services rendered Other financial income Electricity tolls Other financial income Other services rendered Energy purchases Natural gas transportation Energy sales Other financial income Other fixed operating expenses Electricity tolls Other operating income Other fixed operating expenses Other services rendered Other operating income Other fixed operating expense Commodity derivatives Energy purchases Electricity tolls Other services rendered Energy sales 12-31-2015 12-31-2014 12-31-2013 Totals ThCh$ 275,290 14,604,841 (107,759) (15,030,911) (120,896) (2,144,063) (123,964,573) (52,195,582) 54,377 81,749 3,260,734 151,088 650,390 (1,969,563) (10,600,564) (292,198) 392,312 286,833 (1,175,297) 3,491 (3,296,956) (952,044) 172,728 1,188,564 35,773 (2,241,294) 4,263,174 (1,725,582) (9,322) - - - - - - - - - - - - - - - (1,473,974) 36,266 (174,638) (216,437) (833,366) (3,264,764) (153,929) 109,891 87,062 Totals ThCh$ 55,980 - - - (35,921) (30,318,202) 17,157 (2,521,138) (114,115,041) (39,638,398) 56,042 58,169 2,671,120 47,263 956,854 (1,407,349) (3,805) (12,399) 34,253 (10,113,496) (260,495) 197,812 942,615 (2,860,930) (3,409,581) (434,289) 163,226 33,970 (708,903) 3,250,149 (1,731,368) 23,891 (3,322,616) (7,764,442) 1,858,318 229,609 (5,487) (1,378,743) 57,623 3,022 3,222 - - - - - - - - - - - - 2,951,317 3,142,758 Totals ThCh$ 99,654 21,397,171 (1,654,945) (314,422) (47,540,061) (60,095,868) (34,796,720) 769,402 40,124 2,808,698 835,543 (1,317,402) (109,699) 227,765 (6,118,816) 356,056 (2,010,628) (2,734,877) (428,555) 134,775 236,173 32,569 (1,196,294) 9,146,049 186,496 2,624,191 868,710 (1,367,029) 46,444 10,281 (9,295,172) (20,937,075) 95,845 489,864 (219,671) (1,243,417) - - - - - - - - - - - - - - - - - - c) Significant transactions and effects on income/ expenses Transactions with related companies that are not consolidated and their effects on profit or loss are as follows: Taxpayer ID No. (RUT) Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign 76.418.940-k 76.418.940-k 76.418.940-k 76.418.940-k 76.788.080-4 76.788.080-4 76.788.080-4 Foreign 96.880.800-1 96.880.800-1 96.880.800-1 96.524.140-K 96.524.140-K 96.524.140-K 96.524.140-K Foreign Foreign 96.806.130-5 96.806.130-5 Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign 76.652.400-1 76.652.400-1 76.014.570-K 76.014.570-K 76.014.570-K 76.014.570-K 76.014.570-K 77.017.930-0 Foreign Foreign Foreign Foreign Foreign Foreign 76.321.458-3 76.321.458-3 76.321.458-3 76.321.458-3 Company Endesa Energía S.A. Endesa Energía S.A. Enel Latinoamérica S.A Enel Latinoamérica S.A Endesa Generación Endesa Generación Endesa Generación Endesa Generación GNL Chile S.A. (*) GNL Chile S.A. (*) GNL Chile S.A. (*) GNL Chile S.A. (*) GNL Quintero S.A. (*) GNL Quintero S.A. (*) GNL Quintero S.A. (*) SACME Empresa Eléctrica Puyehue S.A. (*) Empresa Eléctrica Puyehue S.A. (*) Empresa Eléctrica Puyehue S.A. (*) Empresa Eléctrica Panguipulli S.A. (*) Empresa Eléctrica Panguipulli S.A. (*) Empresa Eléctrica Panguipulli S.A. (*) Empresa Eléctrica Panguipulli S.A. (*) Enel Iberoamérica S.R.L. Enel Iberoamérica S.R.L. Electrogas S.A. (*) Electrogas S.A. (*) Endesa Operaciones y Servicios PH Chucas Costa Rica Enel Ingegneria Ricerca Enel Ingegneria Ricerca Empresa de Energía de Cundinamarca S.A. Empresa de Energía de Cundinamarca S.A. Empresa de Energía de Cundinamarca S.A. Empresa de Energía de Cundinamarca S.A. Empresa de Energía de Cundinamarca S.A. Centrales Hidroeléctricas de Aysen S.A. (*) Centrales Hidroeléctricas de Aysen S.A. (*) Inversiones GasAtacama Holding Ltda. (1) (*) Inversiones GasAtacama Holding Ltda. (1) (*) Inversiones GasAtacama Holding Ltda. (1) (*) Inversiones GasAtacama Holding Ltda. (1) (*) Inversiones GasAtacama Holding Ltda. (1) (*) Transmisora Eléctrica de Quillota Ltda. (*) Compañía Energética Veracruz S.A.C. Endesa Spain Endesa Spain Enel Trade SpA Enel Trade SpA Enel Trade SpA Sociedad Almeyda Solar SpA(*) Sociedad Almeyda Solar SpA(*) Sociedad Almeyda Solar SpA(*) Sociedad Almeyda Solar SpA(*) Country Relationship Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Costa Rica Common Immediate Parent Common Immediate Parent Common Immediate Parent Associate Associate Associate Associate Associate Associate Associate Associate Parent Parent Associate Associate Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Argentina Colombia Colombia Colombia Colombia Colombia Spain Spain Spain Spain Spain Spain Spain Spain Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Spain Spain Chile Chile Spain Italy Italy Chile Chile Chile Chile Chile Chile Chile Chile Spain Spain Peru Italy Italy Italy Chile Chile Chile Chile Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Description of Transaction Other operating income Natural gas sales Interest on financial debt Other fixed operating expenses Fuel consumption Other fixed operating expenses Other operating income Commodity derivatives Natural gas consumption Natural gas transportation Other services rendered Other financial income Energy sales Electricity tolls Other services rendered Outsourced services Energy purchases Electricity tolls Energy sales Energy purchases Electricity tolls Other services rendered Energy sales Other fixed operating expenses Other operating income Gas tolls Fuel consumption Other operating income Other services rendered Other services rendered Other fixed operating expenses Energy sales Other operating income Other services rendered Other financial income Electricity tolls Other financial income Other services rendered Energy purchases Natural gas transportation Energy sales Other financial income Other fixed operating expenses Electricity tolls Other operating income Other fixed operating expenses Other services rendered Other operating income Other fixed operating expense Commodity derivatives Energy purchases Electricity tolls Other services rendered Energy sales 12-31-2015 Totals ThCh$ 275,290 14,604,841 - (107,759) (15,030,911) (120,896) - (2,144,063) (123,964,573) (52,195,582) 54,377 81,749 3,260,734 151,088 650,390 (1,969,563) - - - (10,600,564) (292,198) 392,312 286,833 (1,175,297) 3,491 (3,296,956) (952,044) 172,728 1,188,564 35,773 (2,241,294) 4,263,174 - 2,951,317 - (1,725,582) - (9,322) - - - - - (1,473,974) 36,266 (174,638) - - (216,437) (833,366) (3,264,764) (153,929) 109,891 87,062 12-31-2014 Totals ThCh$ 55,980 - - (35,921) (30,318,202) - 17,157 (2,521,138) (114,115,041) (39,638,398) 56,042 58,169 2,671,120 47,263 956,854 (1,407,349) (3,805) (12,399) 34,253 (10,113,496) (260,495) 197,812 942,615 (2,860,930) - (3,409,581) (434,289) 163,226 - 33,970 (708,903) 3,250,149 - 3,142,758 - (1,731,368) 23,891 - (3,322,616) (7,764,442) 1,858,318 229,609 (5,487) (1,378,743) 57,623 - 3,022 3,222 - - - - - - 12-31-2013 Totals ThCh$ 99,654 21,397,171 (1,654,945) (314,422) (47,540,061) - - - (60,095,868) (34,796,720) 769,402 40,124 2,808,698 - 835,543 (1,317,402) (109,699) - 227,765 (6,118,816) - - 356,056 (2,010,628) - (2,734,877) (428,555) 134,775 236,173 32,569 (1,196,294) 9,146,049 186,496 2,624,191 868,710 (1,367,029) 46,444 10,281 (9,295,172) (20,937,075) 95,845 489,864 (219,671) (1,243,417) - - - - - - - - - - 399 Consolidated Financial StatementsDescription of Transaction Energy purchases Energy sales Other fixed operating expense Other fixed operating expense Other operating income Other fixed operating expense Energy purchases Energy sales Energy purchases Other services rendered Other services rendered Other services rendered Energy purchases Other services rendered Energy purchases Other services rendered Energy purchases Other services rendered Energy purchases Other services rendered Energy purchases Other services rendered Energy purchases Other services rendered Energy purchases Other services rendered Other fixed operating expense Other services rendered Other fixed operating expense Other services rendered Other services rendered Other services rendered Other services rendered Other services rendered Other services rendered Energy sales Energy purchases 12-31-2015 Totals ThCh$ (14,929,463) 670,035 (13,567,378) (72,057) 124,626 (168,463) (26,456,188) 217,448 (65,275) 5,404 5,380 5,430 (1,982,654) (1,463,855) 7,802 7,208 (2,397,927) 3,523 (2,313,314) 3,461 (910,249) 2,124 (2,978,980) 7,114 (1,997,894) 6,218 (403,404) 16,312 (68,787) 2,723 2,545 2,723 298 12,886 (122,237) 153,158 (505,404) 12-31-2014 Totals ThCh$ 12-31-2013 Totals ThCh$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Total (262,484,943) (211,381,462) (152,123,118) (5,141,912) (1,148,277) Taxpayer ID No. (RUT) 76.052.206-6 76.052.206-6 Foreign Foreign Foreign Foreign 76.179.024-2 76.179.024-2 Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign 76.126.507-5 76.126.507-5 Company Parque Eolico Valle de los Vientos S.A. (*) Parque Eolico Valle de los Vientos S.A. (*) Enel SpA Enel SpA Enel SpA Enel Italia Parque Eolico Tal Tal S.A. (*) Parque Eolico Tal Tal S.A. (*) Quatiara Energía S.A. Enel Green Power Cristal Eolica Enel Green Power SAO Judas Eolica Enel Green Power Primavera Eolica Enel Green Power Emiliana Sa Enel Green Power Emiliana Sa Enel Green Power Joana Sa Enel Green Power Joana Sa Enel Green Power Pau Ferro Eólica Sa Enel Green Power Pau Ferro Eólica Sa Enel Green Power Pedra Do Gerônimo Eólic Enel Green Power Pedra Do Gerônimo Eólic Enel Green Power Tacaicó Eólica Sa Enel Green Power Tacaicó Eólica Sa Enel Green Power Modelo I Eolica SA Enel Green Power Modelo I Eolica SA Enel Green Power Modelo II Eolica SA Enel Green Power Modelo II Eolica SA Enel Produzione Energía Nueva Energía Limpia Mexico S.R.L Enel Green Power Italia Enel Green Power Damascena S.A. Enel Green Power Esperança S.A. Enel Green Power Maniçoba S.A. Enel Solucoes Energeticas Ltda Yacylec Yacylec Parque Eolico Talinay Oriente SA (*) Parque Eolico Talinay Oriente SA (*) Country Chile Chile Italy Italy Italy Italy Chile Chile Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Italy Mexico Italy Brazil Brazil Brazil Brazil Argentina Argentina Chile Chile Relationship Common Immediate Parent Common Immediate Parent Parent Parent Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Associate Associate Common Immediate Parent Common Immediate Parent (1) See Notes 2.4.1, 6 and 14. (*) For the year ended December 31, 2015, the effects on profit or loss of the transactions with related companies in Chile have been classified as discontinued operations in the consolidated statement of comprehensive income. 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 amounts receivable or payable are usually at 30 days term, with automatic rollover for the same periods and amortization in line with cash flows. 400 2015 Annual Report Enersis Taxpayer ID No. (RUT) 76.052.206-6 76.052.206-6 76.179.024-2 76.179.024-2 Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Parque Eolico Valle de los Vientos S.A. (*) Parque Eolico Valle de los Vientos S.A. (*) Common Immediate Parent Common Immediate Parent Country Relationship Company Enel SpA Enel SpA Enel SpA Enel Italia Parque Eolico Tal Tal S.A. (*) Parque Eolico Tal Tal S.A. (*) Quatiara Energía S.A. Enel Green Power Cristal Eolica Enel Green Power SAO Judas Eolica Enel Green Power Primavera Eolica Enel Green Power Emiliana Sa Enel Green Power Emiliana Sa Enel Green Power Joana Sa Enel Green Power Joana Sa Enel Green Power Pau Ferro Eólica Sa Enel Green Power Pau Ferro Eólica Sa Enel Green Power Pedra Do Gerônimo Eólic Enel Green Power Pedra Do Gerônimo Eólic Enel Green Power Tacaicó Eólica Sa Enel Green Power Tacaicó Eólica Sa Enel Green Power Modelo I Eolica SA Enel Green Power Modelo I Eolica SA Enel Green Power Modelo II Eolica SA Enel Green Power Modelo II Eolica SA Enel Produzione Enel Green Power Italia Enel Green Power Damascena S.A. Enel Green Power Esperança S.A. Enel Green Power Maniçoba S.A. Enel Solucoes Energeticas Ltda Yacylec Yacylec Chile Chile Italy Italy Italy Italy Chile Chile Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Italy Italy Brazil Brazil Brazil Brazil Argentina Argentina Chile Chile Parent Parent Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Common Immediate Parent Associate Associate Common Immediate Parent Common Immediate Parent Energía Nueva Energía Limpia Mexico S.R.L Mexico Common Immediate Parent 76.126.507-5 76.126.507-5 Parque Eolico Talinay Oriente SA (*) Parque Eolico Talinay Oriente SA (*) (1) See Notes 2.4.1, 6 and 14. (*) For the year ended December 31, 2015, the effects on profit or loss of the transactions with related companies in Chile have been classified as discontinued operations in the consolidated statement of comprehensive income. 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 amounts receivable or payable are usually at 30 days term, with automatic rollover for the same periods and amortization in line with cash flows. Description of Transaction Energy purchases Energy sales Other fixed operating expense Other fixed operating expense Other operating income Other fixed operating expense Energy purchases Energy sales Energy purchases Other services rendered Other services rendered Other services rendered Energy purchases Other services rendered Energy purchases Other services rendered Energy purchases Other services rendered Energy purchases Other services rendered Energy purchases Other services rendered Energy purchases Other services rendered Energy purchases Other services rendered Other fixed operating expense Other services rendered Other fixed operating expense Other services rendered Other services rendered Other services rendered Other services rendered Other services rendered Other services rendered Energy sales Energy purchases 12-31-2015 Totals ThCh$ (14,929,463) 670,035 (13,567,378) (72,057) 124,626 (168,463) (26,456,188) 217,448 (65,275) 5,404 5,380 5,430 (1,982,654) 7,802 (1,463,855) 7,208 (2,397,927) 3,523 (2,313,314) 3,461 (910,249) 2,124 (2,978,980) 7,114 (1,997,894) 6,218 (403,404) 16,312 (68,787) 2,723 2,545 2,723 298 12,886 (122,237) 153,158 (505,404) 12-31-2014 Totals ThCh$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (5,141,912) 12-31-2013 Totals ThCh$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (1,148,277) Total (262,484,943) (211,381,462) (152,123,118) 401 Consolidated Financial Statements11.2 Board of directors and key management personnel Enersis Américas is managed by Board of Directors which consists of seven members. Each director serves for a three-year term after which they can be reelected. The Board of Directors as of December 31, 2015 was elected at the Ordinary Shareholders Meeting held on April 28, 2015. The current Chairman of the Board was designated at a Board meeting held on June 30, 2015, and new directors were appointed to replace those who resigned during the period. The Vice Chairman and Secretary were designated at the Board meeting held on April 28, 2015. a) Accounts receivable and payable and other transactions Accounts receivable and payable There are no outstanding amounts receivable or payable between the Company and the members of the Board of Directors and key management personnel. Other transactions No transactions other than the payment of remuneration have taken place between the Company and the members of the Board of Directors and key management personnel and other than transactions in the normal course of business-electricity supply. b) Compensation for directors In accordance with Article 33 of Law No. 18,046 governing stock corporations, the compensation of Directors is established each year at the Ordinary Shareholders Meeting of Enersis Américas S.A. The remuneration consists of paying a variable annual compensation equal to one one-thousandth of the profit for the year (attributable to Shareholders of Enersis Américas). Also, each member of the Board will be paid a monthly compensation, one part a fixed monthly fee and another part dependent on meetings attended. The breakdown of this compensation is as follows: • 180 UF as a fixed monthly fee, and • 66 UF as per diem for each Board meeting attended. The amounts paid for the monthly fee will be treated as payment in advance of the variable annual compensation described above. As stated in the by-laws, the remuneration for the Chairman of the Board will be twice that of a Director, and the compensation of the Vice Chairman will be 50% higher than that of a Director. 402 2015 Annual Report Enersis Any advance payments received will be deducted from the annual variable compensation, with no reimbursement if the annual variable compensation is lower than the total amount paid in advances. The variable compensation will be paid, when appropriate, after the Ordinary Shareholders’ Meeting approves the Annual Report, Balance Sheet and Financial Statements, and the Independent Auditors’ Reports and Account Inspectors’ Reports for the year ended December 31, 2015. If any Director of Enersis Américas S.A. is a member of more than one Board in any Chilean or foreign subsidiaries and/or associates, or holds the position of director or advisor in other Chilean or foreign companies or legal entities in which Enersis Américas S.A. has a direct or indirect ownership interest, that Director can be compensated for his/her participation in only one of those Boards or Management Committees. The Executive Officers of Enersis Américas S.A. and/or any of its Chilean or foreign subsidiaries or associates will not receive any compensation or per diem if they hold the position of director in any of the Chilean or foreign subsidiaries or associates of Enersis Américas S.A. Nevertheless, the executives may receive such compensation or per diem, provided there is prior express authorization, as a payment in advance of the variable portion of their remuneration received from the respective companies through which they are employed. Directors’ Committee: Each member of the Directors’ Committee will receive a variable remuneration equal to 0.11765 thousandth of the profit for the year (attributable to shareholders of Enersis Américas). Also each member will be paid a monthly compensation, one part in a fixed monthly fee and another part dependent on meetings attended. This remuneration is broken down as follows: • 60.00 UF as a fixed monthly fee, and • 22.00 UF as per diem for each Board meeting attended. The amounts paid for the monthly fee will be treated as payment in advance of the variable annual compensation described above. Any advance payments received will be deducted from the annual variable compensation, with no reimbursement if the annual variable compensation is lower than the total amount paid in advances. The variable compensation will be paid, when appropriate, after the Ordinary Shareholders’ Meeting approves the Annual Report, Balance Sheet and Financial Statements, and the Independent Auditors’ Reports and Account Inspectors’ Reports for the year ended December 31, 2015. 403 Consolidated Financial StatementsThe following tables show details of the compensation paid to the members of the Board of Directors of Enersis Américas for the years ended December 31, 2015, 2014 and 2013: Taxpayer ID Position Name No. (RUT) Francisco de Borja Acha Besga (1) Chairman Foreigner Pablo Yrarrázaval Valdés (1) Chairman 5.710.967-K Jorge Rosenblut Ratinoff (1) Chairman 6.243.657-3 Francesco Starace (2) Vice Chairman Foreigner Vice Chairman Borja Prado Eulate Foreigner Carolina Schmidt Zaldivar (3) Director 7.052.890-8 4.975.992-4 Herman Chadwick Piñera (3) Director Director 6.429.250-1 Rafael Fernández Morandé Director 4.132.185-7 Hernán Somerville Senn Director Foreigner Director 5.719.922-9 Director Foreigner Director Foreigner Andrea Brentan Leonidas Vial Echeverría (3) Alberto de Paoli (4) Francesca Di Carlo (5) TOTAL Period in position June - December 2015 Year 2014 January - June 2015 June - December 2015 January - April 2015 January - June 2015 June - December 2015 January - December 2015 January - December 2015 January – April 2015 Year 2014 January – December 2015 April – December 2015 12-31-2015 Enersis Américas Board ThCh$ - 20,184 77,861 - 45,292 33,532 53,679 97,303 95,613 22,743 14,785 - - 460,992 12-31-2014 Board of Subsidiaries ThCh$ - Directors’ Committee ThCh$ - - - - - - - - - - - - - - - - 8,745 21,428 36,914 36,914 - - - - 104,001 Name Pablo Yrarrázaval Valdés (1) Jorge Rosenblut Ratinoff Borja Prado Eulate Carolina Schmidt Zaldivar Leonidas Vial Echeverría Taxpayer ID No. (RUT) 5.710.967-K 6.243.657-3 Foreigner 7.052.890-8 5.719.922-9 6.429.250-1 Rafael Fernández Morandé 4.132.185-7 Hernán Somerville Senn Foreigner Andrea Brentan TOTAL Name Pablo Yrarrázaval Valdés Borja Prado Eulate Taxpayer ID No. (RUT) 5.710.967-K Foreigner 48.070.966-7 Rafael Miranda Robredo 5.719.922-9 Leonidas Vial Echeverría 6.429.250-1 Rafael Fernández Morandé 4.132.185-7 Hernán Somerville Senn 5.715.860-3 Eugenio Tironi Barrios TOTAL Position Chairman Chairman Vice Chairman Director Director Director Director Director Period in position January - October 2014 November – December 2014 January - December 2014 November – December 2014 January - October 2014 January - December 2014 January - December 2014 January – December 2014 Enersis Américas Board ThCh$ 98,698 25,414 86,425 13,038 47,758 60,779 62,387 19,738 414,237 Board of Subsidiaries ThCh$ - - - - - - - - - Directors’ Committee ThCh$ - - - 3,192 14,236 18,731 18,731 - 54,890 Position Chairman Vice Chairman Director Director Director Director Director Period in position January – December 2013 April – September 2013 January – December 2013 January – December 2013 January – December 2013 January – December 2013 January – April 2013 12-31-2013 Enersis Américas Board ThCh$ 110,323 52,523 18,639 50,598 55,162 53,638 20,146 361,029 Board of Subsidiaries ThCh$ - - - - - - - - Directors’ Committee ThCh$ - - - 15,859 16,691 16,276 - 48,826 (1) Mr. Jorge Rosenblut became Chairman on November 4, 2014, replacing Pablo Yrarrázaval, who served until October 28, 2014. On June 30, 2015, Mr. Jorge Rosenblut resigned to his position and Mr. Francisco de Borja Acha Besga was appointed as Chairman. (2) Mr. Francesco Starace became Vice Chairman on April 28, 2015. He is not remunerated (3) Ms. Carolina Schmidt became a Director on November 4, 2014, replacing Leonidas Vial, who served until October 30, 2014. On June 26, 2015, Ms. Carolina Schmidt resigned to her position and Mr. Herman Chadwick Piñera replaced her as Director on June 30, 2015. (4) Mr. Alberto de Paoli was appointed to the Board of Directors member in November 2014. He is not remunerated (5) Ms. Francesca Di Carlo was appointed to the Board of Directors member on April 28, 2015. He is not remunerated. c) Guarantees established by the Company in favor of the directors No guarantees have been given to the directors. 404 2015 Annual Report Enersis 11.3 Compensation for key management personnel a) Remunerations received by key management personnel Taxpayer ID No. (RUT) Foreigner 7.750.368-4 24.852.381-6 Foreigner Foreigner 24.852.388-3 15.307.846-7 10.664.744-5 7.625.745-0 6.973.465-0 Name Luca D’Agnese (1) Daniel Fernandez Koprich (2) Francisco Galán Allue (5) Marco Fadda Alain Rosolino Francesco Giogianni (6) José Miranda Montecinos (3) Paola Visintini Vaccarezza (4) Antonio Barreda Toledo (7) Domingo Valdés Prieto Key Management Personnel Position Chief Executive Officer Deputy Chief Executive Officer Administration, Finance and Control Officer Planning and Control Officer Internal Audit Officer Institutional Relations Manager Communications Officer Human Resources and Organization Officer Procurement Officer General Counsel and Secretary to the Board (1) On January 29, 2015, Mr. Luca D’Agnese became CEO replacing Mr. Luigi Ferraris who submitted his voluntarily resignation from Enersis Américas, and served until that date. Mr. Luigi Ferraris had become CEO replacing Mr. Ignacio Antoñanzas on November 12, 2014. (2) On November 12, 2014, Mr. Daniel Fernandez Koprich became Deputy CEO replacing Mr. Massimo Tambosco. (3) On December 1, 2014, Mr. José Miranda Montecinos became Communications Manager replacing Mr. Daniel Horacio Martini, who submitted his voluntarily resignation from Enersis Américas, and served until December 1, 2014. (4) On December 12, 2014, Ms. Paola Visintini Vaccarezza became of Human Resources and Organizational Manager replacing Mr. Carlos Niño, who submitted his voluntarily resignation from Enersis Américas, and served until November 25, 2014. (5) On December 15, 2014, Mr. Francisco Galán Allue became Administration, Finance and Control Manager replacing Mr. Eduardo Escaffi. (6) On December 15, 2014, Mr. Francesco Giogianni became Institutional Relations Manager. (7) On January 29, 2015, Mr. Antonio Barreda Toledo became Procurement Officer replacing Mr. Eduardo López Miller. Incentive plans for key management personnel Enersis Américas has implemented an annual bonus plan for its executives based on meeting company-wide objectives and on the level of their individual contribution in achieving the overall goals of the Group. The plan provides for a range of bonus amounts according to seniority level. The bonuses paid to the executives consist of a certain number of monthly gross remunerations. Compensation received by key management personnel is the following: Cash compensation Short-term benefits for employees Other long-term benefits TOTAL 12-31-2015 ThCh$ 3,308,345 352,329 449,243 4,109,917 Balance at 12-31-2014 ThCh$ 3,028,193 830,052 562,074 4,420,319 12-31-2013 ThCh$ 2,522,068 514,139 612,627 3,648,834 b) Guarantees established by the Company in favor of key management personnel No guarantees have been given to key management personnel. 11.4 Compensation plans linked to share price There are no payment plans granted to the Directors or key management personnel based on the price of Enersis Américas stock. 405 Consolidated Financial Statements12. Inventories The detail of inventories as of December 31, 2015 and 2014 is as follows: Classes of Inventories Goods Supplies for Production Gas Oil Coal Other inventories (*) Total Detail of other inventories (*) Other inventories Supplies for projects and spare parts Electrical materials Balance at 12-31-2015 ThCh$ 872,084 16,060,887 - 13,602,708 2,458,179 78,124,926 95,057,897 78,124,926 22,871,137 55,253,789 12-31-2014 ThCh$ 1,270,326 43,547,980 1,407,285 20,642,086 21,498,609 88,701,848 133,520,154 88,701,848 71,641,346 17,060,502 There are no inventories pledged as security for liabilities. For the year ended December 31, 2015, raw materials and consumables used recognized as fuel expenses were ThCh$ 585,616,918, out of which ThCh$ 258,113,922 corresponds to continuing operations (ThCh$ 511,014,654 and ThCh$ 386,116,195 for the years ended December 31, 2014 and 2013, respectively, out of which ThCh$ 205,534,394 and ThCh$ 174,504,021 correspond to continuing operations, respectively). See Note 28. As of December 31, 2015 and 2014, no inventories have been written down. 406 2015 Annual Report Enersis 13. Current tax assets and liabilities The detail of current tax receivables as of December 31, 2015 and 2014 is as follows: Tax Receivables Monthly provisional tax payments Tax credit for absorbed profits Tax credit for training expenses Tax credits from dividends received abroad Other Total Balance at 12-31-2015 ThCh$ 45,274,710 47,244 80,000 - 2,052,634 12-31-2014 ThCh$ 59,831,897 20,104,186 301,800 28,047,776 2,286,863 47,454,588 110,572,522 The detail of current tax payables as of December 31, 2015 and 2014 is as follows: Tax Payables Income tax Total Balance at 12-31-2015 ThCh$ 142,607,960 12-31-2014 ThCh$ 115,472,313 142,607,960 115,472,313 407 Consolidated Financial Statements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 shareholders’ equity of the Group’s equity method investments during the years 2015 and year 2014: Taxpayer ID No. Foreign Foreign Foreign Foreign Foreign Foreign 96.806.130-5 76.788.080-4 76.418.940-K 76.652.400-1 77.017.930-0 Changes in Investments in Associates Yacylec S.A. Sacme S.A. Distribuidora Eléctrica de Cundinamarca S.A. Central Termica Manuel Belgrano Central Termica San Martin Central Vuelta Obligado S.A. Electrogas S.A. (4) GNL Quintero S.A. (4) GNL Chile S.A. (4) Centrales Hidroeléctricas De Aysén S.A. (4) Transmisora Eléctrica de Quillota Ltda. (4) Relationship Associate Associate Joint Venture Associate Associate Associate Associate Associate Associate Joint Venture Joint Venture Country Argentina Argentina Colombia Argentina Argentina Argentina Chile Chile Chile Chile Chile Currency Argentine peso Argentine peso Colombian peso Argentine peso Argentine peso Argentine peso U.S. dollar U.S. dollar U.S. dollar Chilean peso Chilean peso Ownership Interest 22.22% 50.00% 49.00% 25.60% 25.60% 40.90% 42.50% 20.00% 33.33% 51.00% 50.00% TOTALES 73,633,610 2,582,763 12,238,016 (9,999,106) (1,226,044) (552,420) 76,676,819 (45,716,374) 30,960,445 Taxpayer ID No. Foreign Foreign Foreign 96.806.130-5 76.788.080-4 76.418.940-K 76.652.400-1 77.017.930-0 76.014.570-K Changes in Investments in Associates Yacylec S.A. Sacme S.A. Distribuidora Eléctrica de Cundinamarca S.A. Electrogas S.A. GNL Quintero S.A. GNL Chile S.A. Centrales Hidroeléctricas De Aysén S.A. (2) Transmisora Eléctrica de Quillota Ltda. Inversiones GasAtacama Holding Ltda. (1) Relationship Associate Associate Joint Venture Associate Associate Associate Joint Venture Joint Venture Joint Venture Country Argentina Argentina Colombia Chile Chile Chile Chile Chile Chile Currency Argentine peso Argentine peso Colombian peso U.S. dollar U.S. dollar U.S. dollar Chilean peso Chilean peso U.S. dollar Ownership Interest 22.22% 50.00% 49.00% 42.50% 20.00% 33.33% 51.00% 50.00% 50.00% (1) In April 2014, the company Inversiones GasAtacama Holding Ltda. became a subsidiary and since then is included in the consolidation (see Notes 2.4.1 and 6). (2) The loss recognized in 2014 includes an impairment of ThCh$ 69,066,857 as a result of the uncertainty about the recoverability of this investment (see Note 36.5). (3) The share of profit (loss) from continuing operations is ThCh$ 3,332,971 and ThCh$ 2,560,023 for the years ended December 31, 2015 and 2014. (4) As of December 31, 2015, these equity method investments have been classified as assets held for distribution to owners. TOTALES 248,080,880 3,315,000 (51,853,287) (11,136,879) 7,846,060 13,476,871 (136,095,035) 73,633,610 73,633,610 408 2015 Annual Report Enersis Additions Share of Profit declared Translation (Decreases) 12/31/2015 to owners 12/31/2015 Dividends Currency Comprehensive Increases Balance at distribution Balance at ThCh$ (Loss) ThCh$ ThCh$ Foreign Other Other Income ThCh$ ThCh$ Balance at 01/01/2015 ThCh$ 453,015 19,657 32,795,615 10,777,659 15,198,935 1,818,168 6,144,557 6,426,004 Balance at 01/01/2015 ThCh$ 550,047 21,641 33,083,016 9,682,324 4,797,508 559,615 69,684,864 6,073,897 123,627,968 - - - 9,127 9,127 14,509 2,550,000 - - - - - - - - - - - - - - - (132,598) 34,434 752,621 1,415,471 1,263,043 - 5,121,427 4,534,344 495,389 (2,414,264) 1,168,149 (35,735) 34,719 2,561,039 4,566,154 5,808,748 1,099,143 585,051 3,053,468 3,315,000 (69,525,874) (4,079,210) 25,442 (577,862) (619,792) (531,712) (4,398,423) (4,449,179) ThCh$ (77,008) (39,064) (181,731) (167,201) (3,300) 1,120,075 1,852,923 348,472 - - - - (2,293,359) ThCh$ (61,297) (36,703) 847,016 311,747 159,410 8,919,246 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (4,239,280) (6,897,599) 31,475 (555,081) (110,030) 13,445,396 (2,266,865) ThCh$ 453,015 19,657 32,795,615 10,777,659 15,198,935 1,818,168 6,144,557 6,426,004 - 2,670,567 (232,944) (135,600,682) Transfer to assets held for ThCh$ 29,494,468 ThCh$ 243,409 15,027 623,075 573,257 11,209 12,042,876 (12,042,876) 17,137,023 2,662,029 6,280,293 7,594,153 (17,137,023) (2,662,029) (6,280,293) (7,594,153) Transfer to assets held for ThCh$ - - - - - - - - - - - - - - - 29,494,468 ThCh$ 243,409 15,027 623,075 573,257 11,209 - - - - - - ThCh$ 453,015 19,657 32,795,615 10,777,659 15,198,935 1,818,168 6,144,557 6,426,004 - - - - - - - - - - - - - - - Additions Share of Profit declared Translation (Decreases) 12/31/2014 to owners 12/31/2014 Dividends Currency Comprehensive Increases Balance at distribution Balance at ThCh$ (Loss) ThCh$ ThCh$ Foreign Other Other Income ThCh$ ThCh$ 14. Investments accounted for using the equity method. 14.1. Investments accounted for using the equity method during the years 2015 and year 2014: a. The following tables present the changes in shareholders’ equity of the Group’s equity method investments Foreign Foreign Foreign Foreign Foreign Foreign 96.806.130-5 76.788.080-4 76.418.940-K 76.652.400-1 77.017.930-0 Foreign Foreign Foreign 96.806.130-5 76.788.080-4 76.418.940-K 76.652.400-1 77.017.930-0 76.014.570-K Taxpayer ID No. Changes in Investments in Associates Relationship Ownership Interest Distribuidora Eléctrica de Cundinamarca S.A. Joint Venture Yacylec S.A. Sacme S.A. Central Termica Manuel Belgrano Central Termica San Martin Central Vuelta Obligado S.A. Electrogas S.A. (4) GNL Quintero S.A. (4) GNL Chile S.A. (4) Associate Associate Associate Associate Associate Associate Associate Associate Centrales Hidroeléctricas De Aysén S.A. (4) Transmisora Eléctrica de Quillota Ltda. (4) Joint Venture Joint Venture Country Argentina Argentina Colombia Argentina Argentina Argentina Chile Chile Chile Chile Chile Currency Argentine peso Argentine peso Colombian peso Argentine peso Argentine peso Argentine peso U.S. dollar U.S. dollar U.S. dollar Chilean peso Chilean peso Taxpayer ID No. Changes in Investments in Associates Relationship Ownership Interest Distribuidora Eléctrica de Cundinamarca S.A. Joint Venture Yacylec S.A. Sacme S.A. Electrogas S.A. GNL Quintero S.A. GNL Chile S.A. Centrales Hidroeléctricas De Aysén S.A. (2) Transmisora Eléctrica de Quillota Ltda. Inversiones GasAtacama Holding Ltda. (1) Associate Associate Associate Associate Associate Joint Venture Joint Venture Joint Venture Country Argentina Argentina Colombia Currency Argentine peso Argentine peso Colombian peso Chile Chile Chile Chile Chile Chile U.S. dollar U.S. dollar U.S. dollar Chilean peso Chilean peso U.S. dollar (1) In April 2014, the company Inversiones GasAtacama Holding Ltda. became a subsidiary and since then is included in the consolidation (see Notes 2.4.1 and 6). (2) The loss recognized in 2014 includes an impairment of ThCh$ 69,066,857 as a result of the uncertainty about the recoverability of this investment (see Note 36.5). (3) The share of profit (loss) from continuing operations is ThCh$ 3,332,971 and ThCh$ 2,560,023 for the years ended December 31, 2015 and 2014. (4) As of December 31, 2015, these equity method investments have been classified as assets held for distribution to owners. Balance at 01/01/2015 ThCh$ 453,015 19,657 32,795,615 - - - 10,777,659 15,198,935 1,818,168 6,144,557 6,426,004 Additions ThCh$ - - - 9,127 9,127 14,509 - - - 2,550,000 - Share of Profit (Loss) ThCh$ (132,598) 34,434 752,621 1,415,471 1,263,043 - 5,121,427 4,534,344 495,389 (2,414,264) 1,168,149 Dividends declared ThCh$ - - - (619,792) (531,712) - (4,398,423) (4,449,179) - - - Foreign Currency Translation ThCh$ (77,008) (39,064) (4,079,210) (181,731) (167,201) (3,300) 1,120,075 1,852,923 348,472 - - Other Comprehensive Income ThCh$ - - 25,442 - - - (577,862) - - - - Other Increases (Decreases) ThCh$ - - - - - - - - - - - Balance at 12/31/2015 ThCh$ 243,409 15,027 29,494,468 623,075 573,257 11,209 12,042,876 17,137,023 2,662,029 6,280,293 7,594,153 Transfer to assets held for distribution to owners ThCh$ - - - - - - (12,042,876) (17,137,023) (2,662,029) (6,280,293) (7,594,153) Balance at 12/31/2015 ThCh$ 243,409 15,027 29,494,468 623,075 573,257 11,209 - - - - - TOTALES 73,633,610 2,582,763 12,238,016 (9,999,106) (1,226,044) (552,420) - 76,676,819 (45,716,374) 30,960,445 Balance at 01/01/2015 ThCh$ 550,047 21,641 33,083,016 9,682,324 4,797,508 559,615 69,684,864 6,073,897 123,627,968 Additions ThCh$ - - - - - - 3,315,000 - - Share of Profit (Loss) ThCh$ (35,735) 34,719 2,561,039 4,566,154 5,808,748 1,099,143 (69,525,874) 585,051 3,053,468 Dividends declared ThCh$ - - - (4,239,280) (6,897,599) - - - - Foreign Currency Translation ThCh$ (61,297) (36,703) (2,293,359) 847,016 311,747 159,410 - - 8,919,246 Other Comprehensive Income ThCh$ - - - 31,475 13,445,396 - - - - Other Increases (Decreases) ThCh$ - - (555,081) (110,030) (2,266,865) - 2,670,567 (232,944) (135,600,682) Balance at 12/31/2014 ThCh$ 453,015 19,657 32,795,615 10,777,659 15,198,935 1,818,168 6,144,557 6,426,004 - TOTALES 248,080,880 3,315,000 (51,853,287) (11,136,879) 7,846,060 13,476,871 (136,095,035) 73,633,610 Transfer to assets held for distribution to owners ThCh$ - - - - - - - - - Balance at 12/31/2014 ThCh$ 453,015 19,657 32,795,615 10,777,659 15,198,935 1,818,168 6,144,557 6,426,004 - 73,633,610 22.22% 50.00% 49.00% 25.60% 25.60% 40.90% 42.50% 20.00% 33.33% 51.00% 50.00% 22.22% 50.00% 49.00% 42.50% 20.00% 33.33% 51.00% 50.00% 50.00% 409 Consolidated Financial Statements b. Additional financial information on investments in associated companies and joint ventures - Investments with significant influence The following tables set forth financial information as of December 31, 2015 and 2014 from the Financial Statements of the investments in associates where the Group has significant influence: Investments with Significant Influence % Ownership Interest Direct / Indirect GNL Chile S.A.(*) GNL Quintero S.A. (*) Electrogas S.A. (*) Yacylec S.A. 33.33% 20.00% 42.50% 22.22% Investments with Significant Influence % Ownership Interest Direct / Indirect GNL Chile S.A. GNL Quintero S.A. Electrogas S.A. Yacylec S.A. 33.33% 20.00% 42.50% 22.22% Current Assets ThCh$ 73,289,529 154,169,202 9,800,478 1,810,275 Current Assets ThCh$ 73,425,419 98,325,654 6,085,889 2,027,688 Non-current Assets ThCh$ 19,843,392 679,246,875 46,815,192 193,569 Non-current Assets ThCh$ 81,983 597,812,711 43,289,210 774,429 Current Liabilities ThCh$ 59,207,958 22,104,679 12,191,561 868,193 Current Liabilities ThCh$ 64,329,604 20,036,542 10,076,915 717,301 (*) As of December 31, 2015, these investments in associates have been classified as non-current assets held for distribution to owners. Appendix 3 to these consolidated financial statements provides information on the main activities of our associated companies and the ownership interest the Group holds in them. None of our associates have published price quotations. 12-31-2015 12-31-2014 Non-current Liabilities ThCh$ Non-current Liabilities ThCh$ Revenues ThCh$ 25,938,077 655,759,390 725,626,283 130,540,774 16,087,931 23,546,048 40,198 1,377,810 Expenses ThCh$ (654,273,074) (107,869,054) (10,624,229) (1,974,559) Profit (Loss) ThCh$ 1,486,316 22,671,720 12,921,819 (596,749) Revenues ThCh$ Expenses ThCh$ 3,723,224 732,138,386 (728,840,589) 600,107,009 117,435,890 (88,392,142) 13,938,983 46,046 19,635,597 1,348,659 (8,891,705) (1,509,482) Profit (Loss) ThCh$ 3,297,797 29,043,748 10,743,892 (160,823) Comprehensive Comprehensive Other Income ThCh$ 1,045,519 9,264,617 1,275,795 (346,568) Other Income ThCh$ 478,277 68,785,714 2,067,038 (275,865) Income ThCh$ 2,531,835 31,936,337 14,197,614 (943,317) Income ThCh$ 3,776,074 97,829,462 12,810,930 (436,688) Comprehensive Comprehensive 410 2015 Annual Report Enersis                                                           b. Additional financial information on investments in associated companies and joint ventures - Investments with significant influence The following tables set forth financial information as of December 31, 2015 and 2014 from the Financial Statements of the investments in associates where the Group has significant influence: Investments with Significant Influence % Ownership Interest Direct / Indirect Current Assets Current Liabilities Investments with Significant Influence % Ownership Interest Direct / Indirect Current Assets Current Liabilities 33.33% 20.00% 42.50% 22.22% ThCh$ 73,289,529 154,169,202 9,800,478 1,810,275 33.33% 20.00% 42.50% 22.22% ThCh$ 73,425,419 98,325,654 6,085,889 2,027,688 Non-current Assets ThCh$ 19,843,392 679,246,875 46,815,192 193,569 Non-current Assets ThCh$ 81,983 597,812,711 43,289,210 774,429 ThCh$ 59,207,958 22,104,679 12,191,561 868,193 ThCh$ 64,329,604 20,036,542 10,076,915 717,301 GNL Chile S.A.(*) GNL Quintero S.A. (*) Electrogas S.A. (*) Yacylec S.A. GNL Chile S.A. GNL Quintero S.A. Electrogas S.A. Yacylec S.A. (*) As of December 31, 2015, these investments in associates have been classified as non-current assets held for distribution to owners. Appendix 3 to these consolidated financial statements provides information on the main activities of our associated companies and the ownership interest the Group holds in them. None of our associates have published price quotations. 12-31-2015 Non-current Liabilities ThCh$ 25,938,077 725,626,283 16,087,931 40,198 12-31-2014 Non-current Liabilities ThCh$ 3,723,224 600,107,009 13,938,983 46,046 Revenues ThCh$ 655,759,390 130,540,774 23,546,048 1,377,810 Expenses ThCh$ (654,273,074) (107,869,054) (10,624,229) (1,974,559) Profit (Loss) ThCh$ 1,486,316 22,671,720 12,921,819 (596,749) Revenues ThCh$ 732,138,386 117,435,890 19,635,597 1,348,659 Expenses ThCh$ (728,840,589) (88,392,142) (8,891,705) (1,509,482) Profit (Loss) ThCh$ 3,297,797 29,043,748 10,743,892 (160,823) Other Comprehensive Income ThCh$ 1,045,519 9,264,617 1,275,795 (346,568) Comprehensive Income ThCh$ 2,531,835 31,936,337 14,197,614 (943,317) Other Comprehensive Income ThCh$ 478,277 68,785,714 2,067,038 (275,865) Comprehensive Income ThCh$ 3,776,074 97,829,462 12,810,930 (436,688) 411 Consolidated Financial Statements                                                          - Joint ventures The following tables present information from the financial statements as of December 31, 2015 and 2014 on the main joint ventures: % Ownership 51.0% 51.0% 50.0% 50.0% 48.997% 48.997% Centrales Hidroeléctricas de Aysén S.A. (*) Transmisora Eléctrica de Quillota Ltda, (*) Distribuidora Eléctrica de Cundinamarca S.A. Total current assets Total non-current assets Total current liabilities Total non-current liabilities Cash and cash equivalents Other current financial liabilities Other non-current financial liabilities Revenues Depreciation and amortization expense Impairment losses Interest income Interest expense Income tax expense Profit (loss) 31-12-2015 ThCh$ 31-12-2014 ThCh$ 31-12-2015 ThCh$ 31-12-2014 ThCh$ 31-12-2015 ThCh$ 31-12-2014 ThCh$ 502,938 485,966 5,336,516 4,426,445 14,988,328 13,918,600 15,159,321 15,026,706 12,148,544 11,420,593 127,123,136 140,233,080 3,290,947 3,419,214 466,485 1,159,095 16,616,178 16,252,424 56,685 428,440 45,348 1,830,272 1,835,937 55,374,521 60,107,487 319,670 4,884,645 3,930,814 2,789,518 3,750,964 - - - - - - - - - - - - 1,081,545 116,008 23,230,972 22,738,158 2,852,803 2,672,950 86,666,633 89,367,706 (52,978) (748,171) (738,927) (8,773,063) (7,400,833) (131,894,113) - - - - 20,009 479,518 1,678,801 88,597 633,204 642,775 - (8,586) - - - - (3,100,381) (3,017,696) (679,715) (205,839) (5,237,742) (4,702,120) (4,733,482) (136,325,281) 2,336,297 1,170,102 1,926,420 6,820,089 Other comprehensive income - - - - (8,273,502) (4,680,612) Comprehensive income (4,733,482) (136,325,281) 2,336,297 1,170,102 (6,347,082) 2,139,477 (*) As of December 31, 2015, these investments in joint ventures have been classified as non-current assets held for distribution to owners. See Appendix 3 c. There are no significant commitments and contingencies, or restrictions on funds transfers to its owners in associated companies and joint ventures. 412 2015 Annual Report Enersis               15. Intangible assets other than goodwill The following table presents intangible assets as of December 31, 2015 and 2014: Intangible Assets, Net Intangible Assets, Net Easements and water rights Concessions, Net (1) (*) Development costs Patents, registered trademarks and other rights Computer software Other identifiable intangible assets Intangible Assets, Gross Intangible Assets, Gross Easements and water rights Concessions Development costs Patents, registered trademarks and other rights Computer software Other identifiable intangible assets Intangible Assets, Amortization and Impairment Accumulated Amortization and Impairment, Total Identifiable intangible assets Easements and water rights Concessions Development costs Patents, registered trademarks and other rights Computer software Other identifiable intangible assets (1) The detail of concessions is the following: 12-31-2015 ThCh$ 981,399,272 27,572,798 905,374,088 17,805,648 2,431,516 28,105,416 109,806 12-31-2015 ThCh$ 1,943,902,048 36,770,284 1,788,421,395 26,126,552 11,285,432 79,169,384 2,129,001 12-31-2015 ThCh$ (962,502,776) (962,502,776) (9,197,486) (883,047,307) (8,320,904) (8,853,916) (51,063,968) (2,019,195) 12-31-2014 ThCh$ 1,168,212,056 44,841,692 1,055,986,162 14,833,312 2,206,341 49,549,321 795,228 12-31-2014 ThCh$ 2,376,332,904 54,963,685 2,135,095,221 24,281,499 11,465,938 140,953,212 9,573,349 12-31-2014 ThCh$ (1,208,120,848) (1,208,120,848) (10,121,993) (1,079,109,059) (9,448,187) (9,259,597) (91,403,891) (8,778,121) Concession Holder Ampla Energia e Servicios S.A. (Distribution) Compañía Energetica do Ceara S.A. (Distribution) TOTAL (*) See Note 3d.1) 12-31-2015 ThCh$ 543,414,668 361,959,420 12-31-2014 ThCh$ 637,287,020 418,699,142 905,374,088 1,055,986,162 413 Consolidated Financial Statements                                          The reconciliations of the carrying amounts of intangible assets during the period 2015 and year 2014 are as follows: 2015 Changes in Intangible Assets Opening balance at 1/1/2015 Changes in identifiable intangible assets Increases other than from business combinations Increase (decrease) from exchange differences, net Amortization (1) Impairment losses recognized in profit or loss (2) Increases (decreases) from transfers and other changes Increases (decreases) from transfers Increases (decreases) from other changes Disposals and removals from service Disposals Removals from service Decreases through classified as held for distribution to owners(3) Total changes in identifiable intangible assets Closing balance of intangible assets at 12/31/2015 17,805,648 27,572,798 905,374,088 2,431,516 28,105,416 109,806 981,399,272 2014 Changes in Intangible Assets Opening balance at 1/1/2014 Changes in identifiable intangible assets Increases other than from business combinations Increase (decrease) from exchange differences, net Amortization Impairment losses recognized in profit or loss Increases (decreases) from transfers and other changes Increases (decreases) from transfers Increases (decreases) from other changes Disposals and removals from service Disposals Removals from service Decreases classified as held for sale (3) Total changes in identifiable intangible assets Development Costs ThCh$ Easements Concessions ThCh$ ThCh$ Patents, Registered Trademarks and Other Rights ThCh$ Computer Software ThCh$ Other Identifiable Intangible Assets, Net ThCh$ Intangible Assets, Net ThCh$ 14,833,312 44,841,692 1,055,986,162 2,206,341 49,549,321 795,228 1,168,212,056 5,588,626 (540,471) 317,865 230,687,290 (2,335,864) (236,814,024) (1,152,144) (74,777,866) (1,090,419) 556,721 556,721 (80,001) - - - (62,920,004) (62,920,004) (6,787,470) (80,001) (6,787,470) 1,208,396 (303,835) (780,678) 101,292 101,292 19,091,097 (3,107,703) (9,285,111) - - (264,122) (139,831) (124,291) (53,972) (53,972) 256,893,274 15,908 (243,085,989) (20,145) (86,052,295) (201,424) (556,720) 355,296 - - - (63,817,956) (63,817,956) (7,870,492) (7,870,492) - (14,575,471) (27,824,094) (479,761) (42,879,326) (17,268,894) (150,612,074) 225,175 (21,443,905) (685,422) (186,812,784) Development Costs ThCh$ Easements Concessions ThCh$ ThCh$ Patents, Registered Trademarks and Other Rights ThCh$ Computer Software ThCh$ Other Identifiable Intangible Assets, Net ThCh$ Intangible Assets, Net ThCh$ 26,530,426 42,779,382 1,060,466,808 2,205,245 38,718,081 2,860,419 1,173,560,361 3,546,359 980,172 1,901,989 (856,524) (3,182,841) (1,604,192) 184,993,319 32,102,724 (98,940,029) (14,948,785) (12,927,088) 2,621,037 (103,283,260) 7,870 (433,818) (556,720) (12,934,958) 3,054,855 (102,726,540) 1,053,177 (155,290) (992,288) 95,497 (23,947) 119,444 - - - (113,716) (113,716) - - - - - 17,060,992 (506,857) (7,501,894) 2,152,373 449,895 1,702,478 (373,374) (373,374) - - - 124,597 208,555,836 31,688,822 (7,207) (112,228,451) (14,948,785) (2,182,581) (113,524,022) 556,720 (2,739,301) (113,524,022) - - (487,090) (487,090) (4,404,615) (5,348,305) (11,697,114) 2,062,310 1,096 10,831,240 (2,065,191) (4,404,615) (4,480,646) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Closing balance in identifiable intangible assets at 12/31/2014 14,833,312 44,841,692 1,055,986,162 2,206,341 49,549,321 795,228 1,168,212,056 (1)(2) See Note 30. (3) See Note 5.1 a) and 5.2 414 2015 Annual Report Enersis                                                                                                       The reconciliations of the carrying amounts of intangible assets during the period 2015 and year 2014 are as follows: 2015 Changes in Intangible Assets Opening balance at 1/1/2015 Changes in identifiable intangible assets Increases other than from business combinations Increase (decrease) from exchange differences, net Amortization (1) Impairment losses recognized in profit or loss (2) Increases (decreases) from transfers and other changes Increases (decreases) from transfers Increases (decreases) from other changes Disposals and removals from service Disposals Removals from service Decreases through classified as held for distribution to owners(3) Total changes in identifiable intangible assets 2014 Changes in Intangible Assets Opening balance at 1/1/2014 Changes in identifiable intangible assets Increases other than from business combinations Increase (decrease) from exchange differences, net Amortization Impairment losses recognized in profit or loss Increases (decreases) from transfers and other changes Increases (decreases) from transfers Increases (decreases) from other changes Disposals and removals from service Disposals Removals from service Decreases classified as held for sale (3) Total changes in identifiable intangible assets (1)(2) See Note 30. (3) See Note 5.1 a) and 5.2 Development Costs ThCh$ Easements ThCh$ Concessions ThCh$ Patents, Registered Trademarks and Other Rights ThCh$ Computer Software ThCh$ Other Identifiable Intangible Assets, Net ThCh$ Intangible Assets, Net ThCh$ 14,833,312 44,841,692 1,055,986,162 2,206,341 49,549,321 795,228 1,168,212,056 5,588,626 (540,471) (1,090,419) 317,865 (2,335,864) (1,152,144) - 556,721 556,721 - (80,001) - (80,001) 230,687,290 (236,814,024) (74,777,866) - (62,920,004) - (62,920,004) (6,787,470) - (6,787,470) 1,208,396 (303,835) (780,678) - 101,292 101,292 - - - - 19,091,097 (3,107,703) (9,285,111) - (264,122) (139,831) (124,291) (53,972) - (53,972) - 15,908 (20,145) - (201,424) (556,720) 355,296 - - - 256,893,274 (243,085,989) (86,052,295) - (63,817,956) - (63,817,956) (7,870,492) - (7,870,492) - (14,575,471) - - (27,824,094) (479,761) (42,879,326) (17,268,894) (150,612,074) 225,175 (21,443,905) (685,422) (186,812,784) Closing balance of intangible assets at 12/31/2015 17,805,648 27,572,798 905,374,088 2,431,516 28,105,416 109,806 981,399,272 Development Costs ThCh$ Easements ThCh$ Concessions ThCh$ Patents, Registered Trademarks and Other Rights ThCh$ Computer Software ThCh$ Other Identifiable Intangible Assets, Net ThCh$ Intangible Assets, Net ThCh$ 26,530,426 42,779,382 1,060,466,808 2,205,245 38,718,081 2,860,419 1,173,560,361 3,546,359 980,172 (3,182,841) - (12,927,088) 7,870 (12,934,958) (113,716) - (113,716) - (11,697,114) 1,901,989 (856,524) (1,604,192) - 2,621,037 (433,818) 3,054,855 - - - - 2,062,310 184,993,319 32,102,724 (98,940,029) (14,948,785) (103,283,260) (556,720) (102,726,540) - - - (4,404,615) (4,480,646) 1,053,177 (155,290) (992,288) - 95,497 (23,947) 119,444 - - - - 1,096 17,060,992 (506,857) (7,501,894) - 2,152,373 449,895 1,702,478 (373,374) - (373,374) - 10,831,240 - 124,597 (7,207) - (2,182,581) 556,720 (2,739,301) - - - - (2,065,191) 208,555,836 31,688,822 (112,228,451) (14,948,785) (113,524,022) - (113,524,022) (487,090) - (487,090) (4,404,615) (5,348,305) Closing balance in identifiable intangible assets at 12/31/2014 14,833,312 44,841,692 1,055,986,162 2,206,341 49,549,321 795,228 1,168,212,056 415 Consolidated Financial Statements                                                                                                      The main additions to intangible assets recognized within item Concessions in accordance with IFRIC 12 (See Note 3.d.1) are from Ampla and Coelce and are related to investments in network and extensions to optimize functionality and to improve efficiency and quality levels of service. The additions in 2015 related to continuing operations were ThCh$ 246,286,301. The amortization expense of intangible assets related to continuing operations were ThCh$ 74,944,152, ThCh$ 106,274,341 and ThCh$ 90,481,347 for the years ended December 31, 2015, 2014 and 2013. (See Note 5.1) The employee expenses capitalized as part of projects under development were ThCh$ 10,165,042, ThCh$ 12,046,728 and ThCh$ 13,877,942 for the years ended December 31, 2015, 2014 and 2013, respectively. All employee expenses capitalized are related to continuing operations. According to the Group management’s estimates and projections, the expected future cash flows attributable to intangible assets allow recovery of the carrying amount of these assets recorded as of December 31, 2015 (See Note 3.e). As of December 31, 2015 and 2014, the Company does not have significant intangible assets with an indefinite useful life. 16. Goodwill the following table sets forth goodwill by the Cash-Generating Unit or group of Cash-Generating Units to which it belongs and changes for the years ended December 31, 2015 and 2014: Company Cash Generating Unit Ampla Energia e Serviços S.A. Ampla Energia e Serviços S.A. Empresa Eléctrica de Colina Ltda, Empresa Eléctrica de Colina Ltda, Compañía Distribuidora y Comercializadora de energía S.A. Compañía Distribuidora y Comercializadora de energía S.A. Hidroeléctrica el Chocón S.A. Hidroeléctrica el Chocón S.A. Compañía Eléctrica Tarapacá S.A. (3)(*) Generación Chile - Sing Empresa de Distribución Eléctrica de Lima Norte S.A.A Empresa de Distribución Eléctrica de Lima Norte S.A.A Cachoeira Dourada S.A. Cachoeira Dourada S.A. Edegel S.A.A Emgesa S.A. E.S.P. Chilectra S.A. (*) Edegel S.A.A Emgesa S.A. E.S.P. Chilectra S.A. Empresa Nacional de Electricidad S.A. (*) Generación Chile - Sic Inversiones Distrilima S.A. Enel Brasil S.A. Empresa de Distribución Eléctrica de Lima Norte S.A.A Enel Brasil S.A. Compañía Energética Do Ceará S.A. Compañía Energética Do Ceará S.A. Inversiones GasAtacama Holding Ltda, (1) (*) Inversiones Gasatacama Holding Total (*) Discontinued operations (1) See Notes 2.4.1 and 6. (2) See Note 5.1 a) (3) See Note 17.f) iii) 416 2015 Annual Report Enersis Opening Balance 1/1/2014 189,172,295 2,240,478 11,786,531 8,565,202 4,656,105 43,385,791 69,364,835 81,661,135 5,213,757 128,374,362 731,782,459 12,904 880,679 95,223,795 Increase/ (Decrease) Foreign Currency Closing Balance Foreign Currency Transfer to assets held for distribution to Closing Balance Translation 12/31/2014 Translation owners (2) 12/31/2015 5,474,748 194,647,043 (42,267,975) 152,379,068 - - - - - - - - - - - - - - - - - - (740,800) (942,764) 11,045,731 (1,357,767) (1,799,525) 2,240,478 7,622,438 4,656,105 (2,240,478) (4,656,105) 3,495,841 46,881,632 1,249,194 2,007,456 71,372,291 (15,498,627) 6,579,904 88,241,039 (327,692) 4,886,065 2,351,245 (600,606) 128,374,362 731,782,459 13,944 906,166 372 (196,776) 97,979,623 (21,276,460) (128,374,362) (731,782,459) 1,040 25,487 2,755,828 1,466,514 - - - - - - - - - - - - - - - 9,687,964 5,822,913 48,130,826 55,873,664 90,592,284 4,285,459 14,316 709,390 76,703,163 - - - - - - 18,737,737 20,204,251 (20,204,251) 1,372,320,328 18,737,737 19,795,562 1,410,853,627 (79,396,925) (887,257,655) 444,199,047   The main additions to intangible assets recognized within item Concessions in accordance with IFRIC 12 (See According to the Group management’s estimates and projections, the expected future cash flows Note 3.d.1) are from Ampla and Coelce and are related to investments in network and extensions to optimize projections attributable to the Cash-Generating Units or groups of Cash-Generating Units, to which the functionality and to improve efficiency and quality levels of service. acquired goodwill has been allocated, allow the recovery of its carrying amount as of December 31, 2015 The additions in 2015 related to continuing operations were ThCh$ 246,286,301. The amortization expense of intangible assets related to continuing operations were ThCh$ 74,944,152, ThCh$ 106,274,341 and ThCh$ The origin of the goodwill is detailed below: 90,481,347 for the years ended December 31, 2015, 2014 and 2013. (See Note 5.1) The employee expenses capitalized as part of projects under development were ThCh$ 10,165,042, ThCh$ 12,046,728 and ThCh$ 13,877,942 for the years ended December 31, 2015, 2014 and 2013, respectively. All 1. Ampla Energia e Serviços S.A. a) Continuing operations (See Note 3.e). employee expenses capitalized are related to continuing operations. On November 20, 1996, Enersis Américas S.A. and Chilectra S.A., together with Endesa S.A. and Electricidad de Portugal, acquired a controlling equity interest in Cerj S.A. (now Ampla de Energía) of Rio de Janeiro in According to the Group management’s estimates and projections, the expected future cash flows attributable Brazil. Enersis Américas S.A. and Chilectra S.A. together acquired 42% of the total shares in an international to intangible assets allow recovery of the carrying amount of these assets recorded as of December 31, 2015 public bidding process held by the Brazilian government. As of December 31, 2015 and 2014, the Company does not have significant intangible assets with an indefinite holding a total 60.5% ownership interest, directly and indirectly. Enersis Américas S.A. and Chilectra S.A. also acquired an additional 18.5% on December 31, 2000, as such, 2. Compañía Energética Do Ceará S.A. (Coelce) Between 1998 and 1999, Enersis Américas S.A. and Chilectra S.A., together with Endesa S.A., acquired Compañía de Distribución Eléctrica del Estado de Ceará (Coelce) in northeast Brazil in an international public bidding process held by the Brazilian government. Opening Balance 1/1/2014 189,172,295 2,240,478 11,786,531 8,565,202 4,656,105 43,385,791 69,364,835 81,661,135 5,213,757 128,374,362 731,782,459 12,904 880,679 95,223,795 Increase/ (Decrease) Foreign Currency Translation Closing Balance 12/31/2014 Foreign Currency Translation Transfer to assets held for distribution to owners (2) Closing Balance 12/31/2015 - - - - - - - - - - - - - - 5,474,748 194,647,043 (42,267,975) - 152,379,068 - 2,240,478 - (2,240,478) (740,800) (942,764) - 11,045,731 (1,357,767) 7,622,438 4,656,105 (1,799,525) - (4,656,105) - - 3,495,841 46,881,632 1,249,194 2,007,456 71,372,291 (15,498,627) 6,579,904 88,241,039 (327,692) 4,886,065 2,351,245 (600,606) - - - - - - 128,374,362 731,782,459 - - (128,374,362) (731,782,459) 1,040 25,487 2,755,828 1,466,514 13,944 906,166 372 (196,776) 97,979,623 (21,276,460) - - - 20,204,251 - (20,204,251) - 9,687,964 5,822,913 - 48,130,826 55,873,664 90,592,284 4,285,459 - - 14,316 709,390 76,703,163 - - 18,737,737 1,372,320,328 18,737,737 19,795,562 1,410,853,627 (79,396,925) (887,257,655) 444,199,047 417 (See Note 3.e). useful life. 16. Goodwill the following table sets forth goodwill by the Cash-Generating Unit or group of Cash-Generating Units to which it belongs and changes for the years ended December 31, 2015 and 2014: Company Cash Generating Unit Ampla Energia e Serviços S.A. Ampla Energia e Serviços S.A. Empresa Eléctrica de Colina Ltda, Empresa Eléctrica de Colina Ltda, Compañía Distribuidora y Comercializadora de energía S.A. Compañía Distribuidora y Comercializadora de energía S.A. Hidroeléctrica el Chocón S.A. Hidroeléctrica el Chocón S.A. Compañía Eléctrica Tarapacá S.A. (3)(*) Generación Chile - Sing Empresa de Distribución Eléctrica de Lima Norte Empresa de Distribución Eléctrica de Lima Norte S.A.A Cachoeira Dourada S.A. Edegel S.A.A Emgesa S.A. E.S.P. Chilectra S.A. Empresa Nacional de Electricidad S.A. (*) Generación Chile - Sic Empresa de Distribución Eléctrica de Lima Norte S.A.A Enel Brasil S.A. Compañía Energética Do Ceará S.A. Compañía Energética Do Ceará S.A. Inversiones GasAtacama Holding Ltda, (1) (*) Inversiones Gasatacama Holding S.A.A Cachoeira Dourada S.A. Edegel S.A.A Emgesa S.A. E.S.P. Chilectra S.A. (*) Inversiones Distrilima S.A. Enel Brasil S.A. Total (*) Discontinued operations (1) See Notes 2.4.1 and 6. (2) See Note 5.1 a) (3) See Note 17.f) iii) Consolidated Financial Statements  3. Compañía Distribuidora y Comercializadora de Energía S.A. (Codensa S.A.) On October 23, 1997, Enersis Américas S.A. and Chilectra S.A., together with Endesa S.A., acquired 48.5% equity interest of Colombiana Codensa S.A., a company that distributes electricity in Santa Fé de Bogotá in Colombia. The acquisition took place through an international public bidding process held by the Colombian government. 4. Hidroeléctrica el Chocón S.A. On August 31, 1993, Endesa Chile acquired 59% equity interest of Hidroeléctrica El Chocón in an international public bidding process held by the Argentine government. 5. Empresa de Distribución Eléctrica de Lima Norte S.A.A. On October 15, 2009 in a transaction on the Lima Stock Exchange, Enersis Américas S.A. acquired an additional 24% interest in Empresa de Distribución Eléctrica de Lima Norte S.A. (Edelnor). 6. Cachoeira Dourada S.A. On September 5, 1997, our subsidiary Endesa Chile acquired 79% of the company Cachoeira Dourada S.A. in the state of Goias in a public bidding process held by the Brazilian government. 7. Edegel S.A.A. On October 9, 2009, in a transaction on the Lima Stock Exchange in Peru, our subsidiary Endesa Chile acquired an additional 29.3974% equity interest in Edegel S.A. 8. Emgesa S.A. E.S.P. On October 23, 1997, our subsidiary Endesa Chile, together with Endesa S.A., acquired 48.5% equity interest of Emgesa S.A.E.S.P. in Colombia. The acquisition was made in an international public bidding process held by the Colombian government. b) Discontinued operations 1. Empresa Eléctrica de Colina Ltda. On September 30, 1996, Chilectra S.A. acquired 100% interest of Empresa Eléctrica de Colina Ltda. from the investment company Saint Thomas S.A., which was 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. was merged with Compañía Eléctrica San Isidro S.A.; with the latter being the surviving entity. 3. Compañía Eléctrica San Isidro S.A. On August 11, 2005, Endesa Chile acquired the shares of the company Inversiones Lo Venecia Ltda., whose only asset was a 25% interest in the company San Isidro S.A. (acquisition of non-controlling interests). 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. 418 2015 Annual Report Enersis 4. Chilectra S.A. In November 2000, Enersis Américas S.A. acquired an additional 25.4% equity interest in the subsidiary Chilectra S.A. through a purchasing power of attorney in a public bidding process, obtaining a 99.99% equity interest in the company. 5. Empresa Nacional de Electricidad S.A. (Endesa Chile S.A.) On May 11, 1999, Enersis Américas S.A. acquired an additional 35% equity interest in Endesa Chile in a public bidding process on the Santiago Stock Exchange and through the acquisition of shares in the United States of America (30% and 5%, respectively), obtaining a 60% equity 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 from Southern Cross Latin America Private Equity Fund III L.P (see Notes 2.4.1 and 6). 17. Property, plant and equipment The following table shows property, plant and equipment as of December 31, 2015 and 2014: Classes of Property, Plant and Equipment, Net Property, Plant and Equipment, Net Construction in progress Land Buildings Plant and equipment Fixtures and fittings Other property, plant and equipment under financial lease Classes of Property, Plant and Equipment, Gross Property, Plant and Equipment, Gross Construction in progress Land Buildings Plant and equipment Fixtures and fittings Other property, plant and equipment under financial lease 12-31-2015 ThCh$ 5,003,566,633 607,250,238 100,503,005 71,001,964 4,055,483,055 75,919,162 93,409,209 12-31-2015 ThCh$ 8,112,003,524 607,250,238 100,503,005 124,231,301 6,986,028,809 174,119,689 119,870,482 12-31-2014 ThCh$ 8,234,215,719 1,735,117,241 106,233,186 81,981,704 6,097,991,766 96,320,714 116,571,108 12-31-2014 ThCh$ 14,301,161,988 1,735,117,241 106,233,186 154,431,222 11,912,075,769 248,884,529 144,420,041 Classes of Accumulated Depreciation and Impairment in Property, Plant and Equipment 12-31-2015 ThCh$ 12-31-2014 ThCh$ Total Accumulated Depreciation and Impairment in Property, Plant and Equipment Buildings Plant and equipment Fixtures and fittings Other property, plant and equipment under financial lease (3,108,436,891) (53,229,337) (2,930,545,754) (98,200,527) (26,461,273) (6,066,946,269) (72,449,518) (5,814,084,003) (152,563,815) (27,848,933) 419 Consolidated Financial Statements                The detail and changes in property, plant, and equipment during the years 2015 and 2014 are as follows: Changes in 2015 Opening balance at January 1, 2015 s e g n a h C Increases (decreases) other than from business combinations Increase (decrease) from exchange differences, net Depreciation (2) Impairment (losses) reversals recognized in profit or loss Increases (decreases) from transfers and other changes Increases (decreases) from transfers from construction in progress Increases (decreases) from other changes Disposals and removals from service Disposals Removals Decreases to classify as held for distribution to owners (3) Total changes Closing balance at December 31, 2015 Movimientos año 2014 Opening balance at January 1, 2014 Increases (decreases) other than from business combinations Acquisitions through business combinations (1) Increase (decrease) from exchange differences, net Depreciation (2) Impairment (losses) reversals recognized in profit or loss Increases (decreases) from transfers and other changes Increases (decreases) from transfers from construction in progress Increases (decreases) from other changes s e g n a h C Disposals and removals from service Disposals Removals Total changes Closing balance at December 31, 2014 (1) See Note 2.4.1 and 6. (2) See Note 30. (3) See Note 5.1 a). Construction in Progress ThCh$ 1,735,117,241 1,068,754,499 (156,856,597) - (2,522,445) (1,412,625,340) (1,412,281,354) (343,986) (3,410,468) - (3,410,468) (621,206,652) (1,127,867,003) 607,250,238 Construction in Progress ThCh$ 1,218,316,396 1,026,011,114 10,802,165 (63,451,758) - - (452,716,350) (474,284,985) 21,568,635 (3,844,326) (1,566,349) (2,277,977) 516,800,845 1,735,117,241 Plant and Financial Lease, Property, Plant and Other Property, Plant and Equipment under 21,088,932 19,204,944 1,367,821,944 35,491,552 278,467 Land ThCh$ 106,233,186 48,234,359 (7,426,335) - - - 11,060,086 10,028,846 (713,987) (713,987) (66,913,150) (5,730,181) 100,503,005 Buildings, Net Equipment, Net ThCh$ 81,981,704 (702,915) (11,054,890) (4,818,708) - 14,938,905 4,266,039 (679) - (679) (13,607,492) (10,979,740) ThCh$ 6,097,991,766 3,400,169 (391,213,355) (364,968,158) 12,655,608 1,377,186,537 (9,364,593) (1,235,840) - (1,235,840) (2,668,969,079) (2,042,508,711) 71,001,964 4,055,483,055 Land ThCh$ Buildings, Net Equipment, Net ThCh$ ThCh$ 99,869,574 92,820,775 5,834,476,720 3,081,951 3,216,432 (844,515) - - 1,249,969 (38,952) (301,273) (238,120) (63,153) 725,802 (1,120,737) (4,983,828) - - 4,152,489 (8,447,198) (1,165,599) (1,165,495) (104) 6,363,612 (10,839,071) 106,233,186 81,981,704 12,239,464 171,934,310 (39,565,485) (341,810,698) (13,770,564) 475,028,160 460,761,588 14,266,572 (540,141) - (540,141) 263,515,046 6,097,991,766 Fixtures and Fittings, Net ThCh$ 96,320,714 11,053,860 (11,521,067) (16,893,517) - - 12,022,038 23,469,514 (278,404) (278,404) (38,253,976) (20,401,552) 75,919,162 Fixtures and Fittings, Net ThCh$ 72,898,921 11,023,265 13,707,484 981,409 (13,886,933) - 8,816,027 5,387,042 (2,606,501) (2,511,470) (95,031) 23,421,793 96,320,714 Net ThCh$ 116,571,108 1,108,095 2,429,439 (6,749,401) - - (2,926,212) 3,204,679 (11,051) (11,051) (20,217,448) (23,161,899) 93,409,209 Net ThCh$ 115,416,339 7,316,269 (6,269,994) (695,088) 803,582 - - - - - - Equipment, Net ThCh$ 8,234,215,719 1,131,848,067 (575,642,805) (393,429,784) 10,133,163 31,260,499 31,260,499 (5,650,429) - - (5,650,429) (3,429,167,797) (3,230,649,086) 5,003,566,633 Equipment, Net ThCh$ 7,433,798,725 1,053,081,596 199,660,391 (96,684,817) (366,951,453) (13,770,564) 33,539,681 - 33,539,681 (8,457,840) (5,481,434) (2,976,406) 1,154,769 116,571,108 800,416,994 8,234,215,719 Plant and Financial Lease, Property, Plant and Other Property, Plant and Equipment under 1,211,017 (4,294,709) 14,203,069 108,494 420 2015 Annual Report Enersis The detail and changes in property, plant, and equipment during the years 2015 and 2014 are as follows: Changes in 2015 Construction in Progress Opening balance at January 1, 2015 Increases (decreases) other than from business combinations Increase (decrease) from exchange differences, net Depreciation (2) Impairment (losses) reversals recognized in profit or loss Increases (decreases) from transfers and other changes Increases (decreases) from transfers from construction in s e g n a h C progress Disposals Removals Increases (decreases) from other changes Disposals and removals from service Decreases to classify as held for distribution to owners (3) Total changes Closing balance at December 31, 2015 Opening balance at January 1, 2014 Increases (decreases) other than from business combinations Acquisitions through business combinations (1) Increase (decrease) from exchange differences, net Impairment (losses) reversals recognized in profit or loss Increases (decreases) from transfers and other changes Increases (decreases) from transfers from construction in Increases (decreases) from other changes Disposals and removals from service Depreciation (2) s e g n a h C progress Disposals Removals Total changes (1) See Note 2.4.1 and 6. (2) See Note 30. (3) See Note 5.1 a). Closing balance at December 31, 2014 ThCh$ 1,735,117,241 1,068,754,499 (156,856,597) (2,522,445) (1,412,625,340) (1,412,281,354) (343,986) (3,410,468) - - (3,410,468) (621,206,652) (1,127,867,003) 607,250,238 ThCh$ 1,218,316,396 1,026,011,114 10,802,165 (63,451,758) - - (452,716,350) (474,284,985) 21,568,635 (3,844,326) (1,566,349) (2,277,977) 516,800,845 1,735,117,241 Movimientos año 2014 Construction in Progress Land ThCh$ 106,233,186 48,234,359 (7,426,335) - - 21,088,932 11,060,086 10,028,846 (713,987) - (713,987) (66,913,150) (5,730,181) 100,503,005 Buildings, Net ThCh$ 81,981,704 (702,915) (11,054,890) (4,818,708) - 19,204,944 14,938,905 4,266,039 (679) - (679) (13,607,492) (10,979,740) 71,001,964 Land ThCh$ 99,869,574 3,081,951 3,216,432 (844,515) - - 1,211,017 1,249,969 (38,952) (301,273) (238,120) (63,153) 6,363,612 106,233,186 Buildings, Net ThCh$ 92,820,775 725,802 - (1,120,737) (4,983,828) - (4,294,709) 4,152,489 (8,447,198) (1,165,599) (1,165,495) (104) (10,839,071) 81,981,704 Plant and Equipment, Net ThCh$ 6,097,991,766 3,400,169 (391,213,355) (364,968,158) 12,655,608 1,367,821,944 1,377,186,537 (9,364,593) (1,235,840) - (1,235,840) (2,668,969,079) (2,042,508,711) 4,055,483,055 Plant and Equipment, Net ThCh$ 5,834,476,720 12,239,464 171,934,310 (39,565,485) (341,810,698) (13,770,564) 475,028,160 460,761,588 14,266,572 (540,141) - (540,141) 263,515,046 6,097,991,766 Other Property, Plant and Equipment under Financial Lease, Net ThCh$ 116,571,108 1,108,095 2,429,439 (6,749,401) - 278,467 Property, Plant and Equipment, Net ThCh$ 8,234,215,719 1,131,848,067 (575,642,805) (393,429,784) 10,133,163 31,260,499 (2,926,212) 3,204,679 (11,051) - (11,051) (20,217,448) (23,161,899) 93,409,209 - 31,260,499 (5,650,429) - (5,650,429) (3,429,167,797) (3,230,649,086) 5,003,566,633 Other Property, Plant and Equipment under Financial Lease, Net ThCh$ 115,416,339 - - 7,316,269 (6,269,994) - 108,494 Property, Plant and Equipment, Net ThCh$ 7,433,798,725 1,053,081,596 199,660,391 (96,684,817) (366,951,453) (13,770,564) 33,539,681 (695,088) 803,582 - - - 1,154,769 116,571,108 - 33,539,681 (8,457,840) (5,481,434) (2,976,406) 800,416,994 8,234,215,719 Fixtures and Fittings, Net ThCh$ 96,320,714 11,053,860 (11,521,067) (16,893,517) - 35,491,552 12,022,038 23,469,514 (278,404) - (278,404) (38,253,976) (20,401,552) 75,919,162 Fixtures and Fittings, Net ThCh$ 72,898,921 11,023,265 13,707,484 981,409 (13,886,933) - 14,203,069 8,816,027 5,387,042 (2,606,501) (2,511,470) (95,031) 23,421,793 96,320,714 421 Consolidated Financial Statements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$ 1,131,848,067 for the year ended December 31, 2015 (ThCh$ 1,053,081,596 for the year ended December 31, 2014). In the generation business the main investments include the construction in progress of El Quimbo hydraulic power plant in Colombia (400 MW), involving additions of ThCh$ 287,285,701 for the year ended December 31, 2015 (ThCh$ 175,419,903 as of December 31, 2014) and increased maintenance to plants of ThCh$ 255,844,322 (ThCh$ 282,263,008 for the year ended December 31, 2014). In the distribution business the major investments are in network and extensions to optimize their operation and to improve efficiency and quality levels of service, amounting to ThCh$ 437,227,477 for the year December 31, 2015 (ThCh$ 393,818,587 for the year ended December 31, 2014). During December 31, 2015, the additions to property, plant and equipment related to continuing operations were ThCh$ 864,703,125. The depreciation expense of property, plant and equipment related to continuing operations were ThCh$ 245,598,045, ThCh$ 244,468,409 and ThCh$ 225,484,794 for the years ended December 31, 2015, 2014 and 2013, respectively. (See Note 5.1) b) Capitalized expenses b.1) Borrowing costs Capitalized borrowing costs were ThCh$ 75,229,894, ThCh$ 56,918,667, and ThCh$ 30,325,539 for the years ended December 31, 2015, 2014 and 2013, respectively. Of which, ThCh$ 73,008,564, ThCh$ 55,101,384, and ThCh$ 29,326,555 corresponds to continuing operations, respectively (See Note 33). The weighted average borrowing rate depends mainly on the geographical location and varies in a range of 9.0% to 10.8% as of December 31, 2015 (7.5% and 10.8% as of December 31, 2014). b.2) Employee expenses capitalized Employee expenses capitalized that are directly attibutable to constructions in progress were ThCh$ 77,940,280, ThCh$ 65,229,258 and ThCh$ 48,087,586 during the years ended December 31, 2015, 2014, and 2013, respectively. Of which, ThCh$ 56,936,227, ThCh$ 43,723,690 and ThCh$ 33,256,528 corresponds to continuing operations, respectively. 422 2015 Annual Report Enersis c) Finance leases As of December 31, 2015 and 2014, property, plant and equipment includes ThCh$ 113,626,656, of ThCh$ 93,409,209 corresponding to continuing operations, in leased assets classified as finance leases (ThCh$ 116,571,108 as of December 31, 2014). The present value of future lease payments derived from these finance leases is as follows: 12-31-2015 12-31-2014 Gross ThCh$ Interest ThCh$ Present Value ThCh$ Gross ThCh$ Interest ThCh$ Present Value ThCh$ Less than one year 23,011,723 3,343,287 19,668,436 19,830,764 1,707,340 18,123,424 From one to five years 44,954,548 5,582,380 39,372,168 78,271,598 11,421,552 66,850,046 More than five years 19,822,444 524,712 19,297,732 17,270,183 459,055 16,811,128 Total 87,788,715 9,450,379 78,338,336 115,372,545 13,587,947 101,784,598 Leased assets from continuing operations primarily relate to: 1. Edegel S.A.: Lease agreements to finance the project of converting the Ventanilla thermoelectric plant to a combined cycle plant. The agreements were signed between Edegel S.A.A. and financial institutions BBVA - Banco Continental, Banco de Crédito del Peru, Citibank del Peru and Banco Internacional del Peru - Interbank. These agreements have an average term of 8 years and bear interest at an annual rate of Libor + 1.75% as of December 31, 2105. The company also has an agreement with Scotiabank, which financed the construction of a new open cycle plant at the Santa Rosa Plant. This agreement has a 9-year term and bears interest an annual rate of Libor + 1.75%. The carrying amount of leased assets was ThCh$ 33,533,825 as of December 31, 2015 (ThCh$ 35,641,611 as of December 31, 2014). Leased assets from discontinued operations primary relate to: 1. Endesa Chile S.A.: Lease agreement for Electric Transmission Lines and Installations (Ralco-Charrúa 2X220 KV) entered into with Abengoa Chile S.A. The lease agreement has a 20-year maturity and bears interest at an annual rate of 6.5%. The carrying amount of leased assets was ThCh$ 20,217,448 as of December 31, 2015 (ThCh$ 21,071,706 as of December 31, 2014) 423 Consolidated Financial Statementsd) Operating leases The consolidated statements of income for the years ended December 31, 2015, 2014 and 2013 include ThCh$ 15,872,516, ThCh$ 21,087,207 and ThCh$ 18,878,285, respectively; of which ThCh$ 12,449,187, ThCh$ 14,352,431 and ThCh$ 10,835,191 correspond to continuing operations, respectively; related to the accrual during these periods of operating lease contracts for material assets in operation. As of December 31, 2015 and 2014, the total future lease payments under those contracts are as follows: Less than one year  From one to five years More than five years Total 12-31-2015 12-31-2014 ThCh$ 15,050,043 21,988,822 8,565,963 45,604,828 ThCh$ 13,540,619 34,389,527 46,504,376 94,434,522 e) Other information related to continuing operations i i) As of December 31, 2015, the Group had contractual commitments for the acquisition of property, plant and equipment amounting to ThCh$ 462,845,826, of which ThCh$ 164,998,373 corresponds to continued operations (ThCh$ 468,173,548 as of December 31, 2014). ii) As of December 31, 2015 and 2014, the Group had property, plant and equipment pledged as security for liabilities in the amount of ThCh$ 13,903,028 and ThCh$ 21,952,283, respectively, of which the entire amount corresponds to continuing operations (see Note 36). iii) The Company and its foreign subsidiaries 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 Company has Civil Liability insurance to meet claims from third parties with a €500 million limit. The premiums associated with these policies are presented proportionally for each company under the line item “Prepaid expenses”. iv) Our Argentine subsidiary, Empresa Distribuidora Sur S.A., has its financial equilibrium seriously affected by the delay in the compliance with certain points of the Acta de Acuerdo agreement signed with the Argentine Government, particularly the twice-yearly rate adjustments recognized through the cost-monitoring mechanism (MMC) and the establishment of an Integral Rate Review (IRT) as provided for in this agreement. At the end of 2011, Enersis Américas recognized an impairment loss in property, plant and equipment from Empresa Distribuidora Sur S.A. As of December 31, 2015, the amount recognized is ThCh$ 49,848,116 (see Note 3.e). v) In November 2010, our subsidiary Emgesa signed the contract CEQ-21 with Consortium Impregilo-Obrascon Huarte Lain (“OHL”) for construction of the principal public works of the hydroelectric project El Quimbo. As of December 31, 2015, mostly of the relevant works of the contract are completed, and commenced the process of analysis, review and verification of all the terms inherent in the contract, especially with regard to the final acceptance of the works, required for the initiation of the final settlement process. 424 2015 Annual Report Enersis       As part of the referred review and analysis process, and under the general framework of the contract, the Company is also verifying compliance with a series of contractual milestones (binding on the contractor of the Consortium Impregilo - OHL), whose violation leads to the application of fines or constraints, besides the additional future issues that may arise during the final settlement of the contract. Within this milestones under analysis, paragraph 15 of the contract section “works completion” was identified. This paragraph sets a deadline for the completion as October 15, 2015. Taking into account that as of December 31, 2015 this milestone has not been reached, this led to a delay of 77 days and to a possible discount to be applied to the contractor amounting to ThCP$ 83,849,329 (ThCh$ 18,906,813). On the other hand, the contract also establishes a variation margin to the agreed amounts, so that, if the actual executed amounts are below the 85% of the estimated contract value, the Contractor will receive for administration and incidentals, the missing amount to reach the floor of 85% of the contract value. Conversely, if the actual executed amounts exceed 115% of the estimated contract value, it will be reduced by the administration and contingency by the amount exceeding this ceiling of 115% of the contract value. Consistent with the above, the Company is analyzing the activities related to the contract, identifying significant variations in quantity of work performed (VICO in its Spanish acronym) that according to the agreement would generate a discount to be applied to the contractor amounted to ThCP$ 8,455,079 (ThCh$ 1,906,498). Meanwhile, the Consortium Impregilo OHL presented to the Company eight claims for ThCP$ 147,685,420 (ThCh$ 33,300,929). This amount includes financial costs and estimated overruns generated by issues such as stripping, changes of materials used to fill dam and auxiliary dam, archaeological findings, achievement of skilled personnel and differences for volatility of the exchange rate. The Company, based on the technical and legal analysis performed on each of the claims considers, that they are not applicable because these conditions are not specified in the scope of the contract. Additionally, the contractor submitted notifications of the change of the orders (“NOC” in its Spanish acronym) for ThCP$ 28,522,475 (ThCh$ 6,431,406). As a result of the preliminary analysis of these notifications, the Company recognized ThCP$ 8,425,765 (ThCh$ 1,899,888) in the financial statements. The remained amounts for ThCP$ 11,945,357 (ThCh$ 2,693,505) were rejected for the reason that they correspond to costs that are not the responsibility of the Company. f) Other information related to discontinued operations i) The condition of certain assets of our subsidiary Endesa Chile 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 other projects. As such, a new supply configuration for the upcoming years, in which it is expected that these facilities will not be used. Therefore, in 2009, the Company recognized an impairment loss of ThCh$ 43,999,600 for these assets, which is still has not reversed. ii) 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 425 Consolidated Financial Statements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. Collection made on these bank performance bonds reduced the capitalized cost overruns incurred by the company due to breach of contract. 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, as a result of final agreement reached at the end of 2014, Endesa Chile’s acquisition costs of the plant increased by US$ 125 million (ThCh$ 75,843,750 approximately) which were recognized as part of the acquisition cost of property, plant and equipment. The payment of these costs was made on April 6, 2015. iii) At the end of 2012, our subsidiary Compañía Eléctrica Tarapacá S.A., whose assets and liabilities as of December 31, 2015 have been classified as disposal group held for distribution to owners, recognized an impairment loss of ThCh$ 12,578,098, to adjust the carrying amount of certain specific assets operating in the SING grid to its recoverable amount. At the closing of 2015, were approved certain regulatory developments to the Chilean energy industry, which after being evaluated by the Company, resulted in the identification of a new single CGU for all generation assets in Chile. The analysis takes into account the fact that Endesa Chile, a discontinued operation as of December 31, 2015, performs an optimization and management of all its assets related to its generation business, it has a centralized trade policy, with sales contracts agreed at company level and not assigned to power plants. Therefore, generation of cash flows depends on all the assets as a whole. Previously, the company identified a CGU for the assets operating in the SIC grid and another one for the assets operating in the SING, under the consideration that there were two separate markets. The new scheme, approved in 2015, posed by the interconnection of SIC and SING, unifies markets and considers a single determination of prices, which was illustrated by latest bids for energy supply to regulated customers. Therefore, these new conditions indicated that the recognized impairment loss mentioned above has been reversed. This was based, inter alia, on the generation of additional value by the interconnection project between the SIC and SING which is expected to be operational in 2019, by improved utilization of reserves, by expanding the potential market for specific impaired assets and decreasing overall risk of the portfolio. The effects of the interconnection are considered in the five-year projections used by the company to perform impairment tests (see Note 3.e). iv) At the end of 2014, our subsidiary Endesa Chile S.A. recognized an impairment loss of ThCh$ 12,581,947 related to the Punta Alcalde project. This impairment loss was triggered because the current definition of the project is not fully aligned with the strategy that the Company is reformulating, particularly, with regard to technological leadership, and to community and environmental sustainability. Endesa Chile has decided to suspend the project pending clarification of its profitability (see Note 3.e). v) In line with its sustainability strategy and in order to develop community relationships, Endesa Chile has decided to research new design alternatives for the Neltume project, in particular regarding the issue of the 426 2015 Annual Report Enersis discharge of Lake Neltume, which has been raised by the communities in the various instances of dialogue.To start a new phase of research of an alternative project, which includes the discharge of water on the Fuy River in late December 2015, the Company withdrew the Environmental Impact Study. This decision applies only to the portion of the Neltume project related to the power plant and not to portion related to the transmission project, which continues its course on handling in the Environmental Assessment Service. As a result of the above, as of December 31, 2015 Endesa Chile recognized a loss of ThCh$ 2,706,830, associated with the write down of certain assets related to Environmental Impact Study, which has been withdrawn and to other studies directly linked to the old design of assets. vi) As of December 31, 2015, Endesa Chile recognized an impairment loss of ThCh$ 2,522,445 related to the wind project Waiwen. This loss was a result of the new assessment of the feasibility of the project performed by the Company and a conclusion that, under existing conditions to date, its profitability is uncertain. 427 Consolidated Financial Statements18. Investment Property The detail and changes in investment property during the years 2015 and 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 Additions Disposals of land Disposals related to the sale of subsidiaries (1) Depreciation expense Impairment losses recognized in income statement Balance at December 31, 2014 Disposals Depreciation expense 47,047,605 1,463,242 (1,806,675) (36,040,698) - - 10,663,474 (1,724,811) - Transfer to assets held for distribution to owners (2) (8,938,663) Balance at December 31, 2015 - (2,170,556) 44,877,049 - - 1,463,242 (1,806,675) (36,040,698) (30,483) (30,483) 52,127 52,127 (2,148,912) 8,514,562 1,387,042 (25,806) 787,676 - (337,769) (25,806) (8,150,987) - (1) See Note 2.4.1. (2) See Note 5.1. a) The selling prices of investment properties disposed of during the years ended December 31, 2015 and 2014 were ThCh$ 1,800,933 and ThCh$ 9,363,249, respectively. 428 2015 Annual Report Enersis             Fair value measurement and hierarchy The fair value of the Group’s investment properties as of December 31, 2015 was ThCh$ 11,113,107, which was determined using independent appraisals. As of December 31, 2015, the fair value of these properties has not changed significantly. The hierarchy of these investment properties’ fair value is as follows: Investment Properties See Note 3.h. Fair value measured at the end of the reporting period using: Level 1 ThCh$ Level 2 ThCh$ Level 3 ThCh$ - 11,113,107 - For the years ended December 31, 2015, 2014 and 2013, the detail of income and expenses from investment properties classified as discontinued operations is as follows: Income and expense from investment properties Balance at 12-31-2015 12-31-2014 12-31-2013 ThCh$ ThCh$ ThCh$ Rental income from investment properties 163,660 263,643 341,494 Revenue from the sale of investment properties 1,800,933 9,363,249 16,510,931 Direct operating expense from investment properties generating rental income Direct operating expense from investment properties not generating rental income Total (*) (*) See Note 5.1. c) (163,767) (328,590) (192,963) (337,770) 1,463,056 (1,806,675) (4,315,400) 7,491,627 12,344,062 The Company has not entered into any repair, maintenance, acquisition, construction or development agreements that might represent future obligations as of December 31, 2015 and 2014. The Group has insurance policies to cover operational risks of its investment properties, as well as to cover legal claims against the Group that could potentially arise from exercising its business activity. The Group’s management considers that the insurance policy coverage is sufficient against the risks involved. 429 Consolidated Financial Statements          19. Deferred Taxes a. The origin and changes in deferred tax assets and liabilities as of December 31, 2015 and 2014 are as follows: Balance at January 1, 2015 Deferred Tax Assets s e g n a h C Increase (decrease) in profit or loss Increase (decrease) in other comprehensive income Foreign currency translation Transfers to (from) non-current assets and disposal groups held for distribution to owners (2) Other increases (decreases) Balance at December 31, 2015 Balance at January 1, 2014 Increase (decrease) in profit or loss Deferred Tax Assets s e g n a h C Increase (decrease) in other comprehensive income Acquisitions through business combinations under common control (1) Disinvestment through selling businesses Foreign currency translation Transfers to (from) non-current assets and disposal groups held for sale Other increases (decreases) Balance at December 31, 2014 Accumulated Depreciation 63,763,279 (1,969,882) - (7,116,721) (4,982,473) (24,516,409) 25,177,794 Accumulated Depreciation 69,331,028 (1,990,390) - - (107,241) (1,847,234) - (1,622,884) 63,763,279 Deferred Tax Assets Relating to Post- Employment Benefit Amortization Accumulated Provisions Obligations 1,506,979 (620,212) 86,266,322 25,701,841 3,103,317 33,790,833 6,338,161 - (1,860,738) (5,404,662) (9,206,928) Revaluation of Financial Instruments 21,132,561 (4,316,990) 806,915 (339,940) (2,687,490) (422,929) - (12,720,468) (1,503,949) (22,317,309) 6,607,405 (76,462,306) 401,995 (1,547,792) 5,633,434 27,413,705 34,004,449 15,734,754 32,815,086 1,360,887 (62,702,021) 109,325,023 Others 13,013,577 (42,100,049) - Deferred Tax Assets 193,637,874 18,354,170 7,145,076 (863,778) (24,792,767) Tax Loss Carry forwards 4,851,839 7,868,629 - - - - Deferred Tax Assets Relating to Amortization Accumulated Provisions Obligations Post- Employment Benefit Revaluation of Financial Instruments Tax Loss Carry forwards Others Deferred Tax Assets 72,196,398 721,942 43,659,516 1,710,288 22,518,595 210,137,767 (367,726) 5,086,210 (10,571,495) (28,275,716) 4,860,441 9,600,350 (21,658,326) - 10,357,383 1,074,342 (1,084) 11,430,641 879,716 (34,403) - - 537,932 974,883 2,392,531 (329,845) (5,816,292) (6,287,781) (551,562) 1,904,394 (1,086,184) (110,140) (2,055,603) (3,746,329) (29,583) (1,761) (1,448,281) (1,142,270) (2,621,895) 2,426,267 1,506,979 6,263,590 3,683,432 4,784,559 (478,696) (11,065,002) 3,991,266 86,266,322 3,103,317 21,132,561 4,851,839 13,013,577 193,637,874 - - - - - - - - - - - - 430 2015 Annual Report Enersis 19. Deferred Taxes a. The origin and changes in deferred tax assets and liabilities as of December 31, 2015 and 2014 are as follows: Deferred Tax Assets Balance at January 1, 2015 Increase (decrease) in profit or loss Increase (decrease) in other comprehensive income Foreign currency translation owners (2) Other increases (decreases) Balance at December 31, 2015 Transfers to (from) non-current assets and disposal groups held for distribution to s e g n a h C s e g n a h C Balance at January 1, 2014 Increase (decrease) in profit or loss Deferred Tax Assets Increase (decrease) in other comprehensive income Acquisitions through business combinations under common control (1) Disinvestment through selling businesses Foreign currency translation Other increases (decreases) Balance at December 31, 2014 Accumulated Depreciation 63,763,279 (1,969,882) - (7,116,721) (4,982,473) (24,516,409) 25,177,794 Accumulated Depreciation 69,331,028 (1,990,390) - - - (107,241) (1,847,234) (1,622,884) 63,763,279 Deferred Tax Assets Relating to Amortization Accumulated 1,506,979 (620,212) - (1,860,738) Provisions 86,266,322 25,701,841 - (5,404,662) Post- Employment Benefit Obligations 3,103,317 33,790,833 6,338,161 (9,206,928) Revaluation of Financial Instruments 21,132,561 (4,316,990) 806,915 (339,940) Tax Loss Carry forwards 4,851,839 7,868,629 - - Others 13,013,577 (42,100,049) - (863,778) Deferred Tax Assets 193,637,874 18,354,170 7,145,076 (24,792,767) - (2,687,490) (422,929) - (12,720,468) (1,503,949) (22,317,309) 6,607,405 5,633,434 (76,462,306) 27,413,705 401,995 34,004,449 (1,547,792) 15,734,754 - - 32,815,086 1,360,887 (62,702,021) 109,325,023 Deferred Tax Assets Relating to Amortization Accumulated - Provisions 72,196,398 Post- Employment Benefit Obligations 721,942 Revaluation of Financial Instruments 43,659,516 Tax Loss Carry forwards 1,710,288 Others 22,518,595 Deferred Tax Assets 210,137,767 (367,726) 5,086,210 (10,571,495) (28,275,716) 4,860,441 9,600,350 (21,658,326) - - - - 10,357,383 1,074,342 - (1,084) 11,430,641 879,716 (34,403) - - - - 537,932 974,883 2,392,531 (329,845) (5,816,292) (6,287,781) (551,562) 1,904,394 (1,086,184) (110,140) - (2,055,603) (3,746,329) Transfers to (from) non-current assets and disposal groups held for sale - (29,583) (1,761) - (1,448,281) (1,142,270) (2,621,895) 2,426,267 1,506,979 6,263,590 3,683,432 4,784,559 (478,696) (11,065,002) 3,991,266 86,266,322 3,103,317 21,132,561 4,851,839 13,013,577 193,637,874 431 Consolidated Financial StatementsDeferred Tax Liabilities Balance at January 1, 2015 Increase (decrease) in profit or loss Increase (decrease) in other comprehensive income Foreign currency translation Transfers to (from) non-current assets and disposal groups held for distribution to owners (2) s e g n a h C Other increases (decreases) Balance at December 31, 2015 Deferred Tax Liabilities Balance at January 1, 2015 Increase (decrease) in profit or loss Increase (decrease) in other comprehensive income Acquisitions through business combinations (1) Disinvestment through selling businesses Foreign currency translation Transfers to (from) non-current assets and disposal groups held for sale Other increases (decreases) Balance at December 31, 2014 (1) See Note 2.4.1 and 6. (2) See Note 5.1. a). Accumulated Depreciation 427,881,352 26,238,797 - 4,395,448 (233,948,342) (53,222,278) 171,344,977 Accumulated Depreciation 357,404,910 (37,480,718) - 27,088,856 - 18,935,850 - 61,932,454 427,881,352 Deferred Tax Liabilities Relating to Foreign Currency Contracts Post- Employment Benefit Obligations Revaluation of Financial Instruments Deferred Tax Liabilities Others 16,499 488,257 (64,398) 65,061 (679) (504,503) 237 - - 163,063 50,259,017 478,361,484 37,625,257 76,762,399 147,605 (200,133) (116,926) 5,424 (18,128,150) (13,662,218) (792,049) (235,026,325) (66,322) 249,770 (8,471,075) (74,413,799) 60,292,867 231,904,615 Amortization Accumulated (712,025) 13,122,113 Provisiones 41,553 - (1) (285,255) 16,764 712,025 (12,861,646) Deferred Tax Liabilities Relating to Amortization Accumulated Provisiones Foreign Currency Contracts Post- Employment Benefit Obligations Revaluation of Financial Instruments Deferred Tax Others Liabilities 21,169,697 20,220 20,818 5,792,725 11,078,520 395,486,890 (1,281,408) (24,553,240) (470,394) (4,687,449) 39,058,137 (29,415,072) 1,906,194 (307,279) 141,446 (2,472,330) 18,203,881 - - - - (20,511) 401,237 378 381,104 - - - - - - - 1,834,311 28,923,167 - - - - (21,794,483) 24,881,852 41,553 486,586 16,499 (1,484,896) 760,001 64,781,514 163,063 50,259,017 478,361,484 - - - - - - - - - - - - - - - - - - - - 432 2015 Annual Report Enersis             Transfers to (from) non-current assets and disposal groups held for distribution Deferred Tax Liabilities Balance at January 1, 2015 Increase (decrease) in profit or loss Increase (decrease) in other comprehensive income Foreign currency translation s e g n a h C to owners (2) Other increases (decreases) Balance at December 31, 2015 Deferred Tax Liabilities Balance at January 1, 2015 Increase (decrease) in profit or loss Increase (decrease) in other comprehensive income Acquisitions through business combinations (1) Disinvestment through selling businesses Foreign currency translation Transfers to (from) non-current assets and disposal groups held for sale Other increases (decreases) Balance at December 31, 2014 (1) See Note 2.4.1 and 6. (2) See Note 5.1. a). Accumulated Depreciation 427,881,352 26,238,797 - 4,395,448 (233,948,342) (53,222,278) 171,344,977 Accumulated Depreciation 357,404,910 (37,480,718) 27,088,856 18,935,850 - - - 61,932,454 427,881,352 Deferred Tax Liabilities Relating to Amortization Accumulated Provisiones - 41,553 (712,025) 13,122,113 - - - - (1) (285,255) 712,025 (12,861,646) - 16,764 Foreign Currency Contracts - - - Post- Employment Benefit Obligations 16,499 Revaluation of Financial Instruments 163,063 Deferred Tax Liabilities Others 50,259,017 478,361,484 488,257 (64,398) 65,061 (679) (504,503) 237 - 37,625,257 76,762,399 147,605 (200,133) (116,926) 5,424 (18,128,150) (13,662,218) - (792,049) (235,026,325) (66,322) 249,770 (8,471,075) (74,413,799) 60,292,867 231,904,615 Deferred Tax Liabilities Relating to Amortization Accumulated Provisiones 21,169,697 20,220 (1,281,408) (24,553,240) - - - - - - 1,906,194 (307,279) - - (21,794,483) 24,881,852 - 41,553 Foreign Currency Contracts - - - - - - - Post- Employment Benefit Obligations 20,818 Revaluation of Financial Instruments 5,792,725 Deferred Tax Liabilities Others 11,078,520 395,486,890 (470,394) (4,687,449) 39,058,137 (29,415,072) (20,511) 401,237 378 381,104 - - - - - - 1,834,311 28,923,167 - - 141,446 (2,472,330) 18,203,881 - - - 486,586 16,499 (1,484,896) 760,001 64,781,514 163,063 50,259,017 478,361,484 433 Consolidated Financial Statements            Recovery of deferred tax assets will depend on whether sufficient tax profits are obtained in the future. The Company’s management believes that the future profit projections for its subsidiaries will allow these assets to be recovered. b. As of December 31, 2015, the Group has not recognized deferred tax assets related to tax losses carry forward for ThCh$ 20,342,024 (ThCh$ 42,776,327 as of December 31, 2014). See Note 3.p. The Group has not recognized deferred tax liabilities for taxable temporary differences relating to investment in subsidiaries 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, 2015, the aggregate amount of taxable temporary differences relating to investments in subsidiaries and joint ventures for which deferred tax liabilities have not been recognized were ThCh$ 1,840,354,456, of which ThCh$ 982,946,588 corresponds to continuing operations (ThCh$ 1,922,581,276 as of December 31, 2014). On the other hand, the total amount of deductible temporary differences relating to investments in subsidiaries and joint ventures for which as of December 31, 2015 it is probable that will not reverse in the foreseeable future or there will be not sufficient taxable profits in the future to recover such temporary differences were ThCh$ 3,138,611,507, of which ThCh$ 2,698,896,553 corresponds to continuing operations (ThCh$ 3,451,816,581 as of December 31, 2014). Additionally, the Group has not recognized deferred tax assets for deductible temporary differences which as of December 31, 2015 totaled ThCh$ 57,311,886 (ThCh$ 79,702,961 as of December 31, 2014), as it is not probable that sufficient future taxable profits exist to recover such temporary differences. The Group companies are potentially subject to income tax audits by the tax authorities of each country in which the Group operates. Such tax audits are limited to a number of annual tax periods and once these have expired audits of these periods can no longer be performed. Tax audits by nature are often complex and can require several years to complete. The following table presents a summary of tax years potentially subject to examination: Country Chile Argentina Brazil Colombia Peru Period 2012-2014 2008-2014 2009-2014 2013-2014 2010-2014 Given the range of possible interpretations of tax standards, the results of any future inspections carried out by tax authorities for the years subject to audit can give rise to tax liabilities that cannot currently be quantified objectively. Nevertheless, Enersis Américas Management estimates that the liabilities, if any, that may arise from such audits, would not significantly impact the Group companies’ future results. 434 2015 Annual Report Enersis The effects of deferred taxes on the components of other comprehensive income attributable to both controlling and non-controlling interests for the years ended December 31, 2015 and 2014, are as follows: Effects of Deferred Tax on the Components of Other Comprehensive Income Available-for-sale financial assets Amount Before Tax 12-31-2015 Income Tax Expense (Benefit) ThCh$ ThCh$ Amount After Tax ThCh$ Amount Before Tax ThCh$ (442,864) (291) (443,155) 1,849 12-31-2014 Income Tax Expense (Benefit) ThCh$ (1,462) Amount After Tax ThCh$ 387 Cash flow hedge (138,241,392) 36,399,000 (101,842,392) (145,892,370) 35,887,996 (110,004,374) Share of other comprehensive income in associates and joint ventures accounted for using the equity method Foreign currency translation Gains (losses) from defined benefit pension plans Components of other comprehensive income (552,420) - (552,420) 13,476,871 (644,537,672) - (644,537,672) 4,370,648 - - 13,476,871 4,370,648 (19,027,368) 6,018,363 (13,009,005) (36,681,734) 12,694,514 (23,987,220) (802,801,716) 42,417,072 (760,384,644) (164,724,736) 48,581,048 (116,143,688) 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. As discussed in Note 3.p), and as Enersis Américas assumed that, since an Extraordinary Shareholders’ Meeting had not agreed to adopt the alternative system, the partially integrated system applies by default. The changes in deferred tax assets and liabilities as a direct effect of the increase in the corporate income tax rate were recognized directly in equity. Particularly, for the year ended December 31, 2014, the net charge against equity was ThCh$ 62,035,245, decreasing net income attributable to shareholders of Enersis Américas in ThCh$ 38,284,524. 435 Consolidated Financial Statements  d. In Colombia, Law 1,739 enacted in 2014, increased from 8% to 9% indefinitely the rate for the specific income tax for financing social programs known as CREE, levied on taxable profits earned each year for the tax year 2016 onwards. Additionally, this Law established the CREE surcharge of 5%, 6%, 8% and 9% for 2015, 2016, 2017 and 2018, respectively. The effect of temporary differences involving the payment of less or more income tax in the current year is recognized as a deferred tax credit or debit, as appropriate, at the applicable tax rates in effect when the differences are reversed (39% in 2015, 40% in 2016, 42% in 2017, 43% in 2018 and 34% from 2019), provided there is a reasonable expectation that such differences will reverse in the future and that the asset will generate sufficient taxable income. As part of this increase in tax rates, the Colombian subsidiaries have recognized changes in deferred tax assets and liabilities as of December 31, 2014. The net effect was the recognition of a gain for ThCh$ 3,943,235. e. In Peru, the corporate income tax rate is 30% on taxable income, after deducting the employees profit share of 5% of taxable income, as of December 31, 2014 and 2013. Law No. 30296 established that the applicable corporate income tax rate on taxable income, after deducting the employees profit share will be: 28% in 2015 and 2016, 27% in 2017 and 2018, and 26% from 2019 onwards. As part of this increase in tax rates, the Peruvian subsidiaries have recognized changes in deferred tax assets and liabilities as of December 31, 2014. The net effect was the recognition of a gain for ThCh$ 24,818,773. 436 2015 Annual Report Enersis 20. Other Financial Liabilities The balance of other financial liabilities as of December 31, 2015 and 2014 is as follows: Other Financial Liabilities 12-31-2015 12-31-2014 Current Non-current ThCh$ ThCh$ Current Non-current ThCh$ ThCh$ Interest-bearing borrowings Hedging derivatives (*) Non-hedging derivatives (**) 617,276,453 1,846,995,721 300,871 69,545,029 - 1,052,026 418,266,381 3,167,948,954 114,861,592 6,286,982 995,059 2,544,239  Total ((*) See Note 22.2.a (**) See Note 22.2.b 687,873,508 1,847,296,592 421,805,679 3,289,097,528 20.1 Interest-bearing borrowings The detail of current and non-current interest-bearing borrowings as of December 31, 2015 and 2014 is as follows: Classes of Interest-bearing borrowings 12-31-2015 12-31-2014 Current Non-current Current Non-current ThCh$ ThCh$ ThCh$ ThCh$ Bank loans Unsecured obligations Financial leases Other obligations 188,121,545 232,626,020 42,325,846 247,216,989 356,221,587 1,391,715,407 308,925,119 2,565,417,993 19,668,436 58,669,900 18,123,424 83,661,174 53,264,885 163,984,394 48,891,992 271,652,798  Total 617,276,453 1,846,995,721 418,266,381 3,167,948,954 437 Consolidated Financial Statements                                        Bank loans by currency and contractual maturity as of December 31, 2015 and 2014 are as follows: Summary of bank loans by currency and maturity Current Country Currency Nominal Interest Rate Secured/ Unsecured Maturity One to three months Three to twelve months Total Current at 12-31-2015 ThCh$ ThCh$ ThCh$ Maturity Non-current Two to three Three to four Four to five Over five One to two years ThCh$ years ThCh$ years ThCh$ years ThCh$ years ThCh$ Peru Peru Argentina Argentina Colombia Brasil US$ Soles US$ Ar$ CP Real 2.40% Unsecured 26,650,675 2,833,429 29,484,104 5.20% Unsecured 12,712,792 13.13% Unsecured 37.06% Unsecured 3,899,595 2,693,226 - - 12,712,792 3,899,595 4,809,318 7,502,544 6.46% Unsecured 32,928,994 76,448,340 109,377,334 3,777,906 19,247,361 299,442 2,083,721 22,920,929 - 1,080,762 29,066,078 63,647,258 92,713,336 14.53% Unsecured 9,045,598 16,099,578 25,145,176 30,167,521 30,167,521 30,167,521 Total 87,930,880 100,190,665 188,121,545 66,175,988 72,335,811 30,466,963 63,647,258 232,626,020 Country Currency Nominal Interest Rate Secured/ Unsecured Current Maturity One to three months Three to twelve months Total Current at 12-31-2014 ThCh$ ThCh$ ThCh$ Maturity Non-current Two to three Three to four Four to five Over five One to two years ThCh$ years ThCh$ years ThCh$ years ThCh$ years ThCh$ Chile Chile Peru Peru Argentina Argentina Colombia Brazil US$ Ch$ US$ Sol US$ Ar$ CP Real 5.98% Unsecured 5.47% Unsecured - 1,594 1,007,362 1,007,362 - 1,594 2.93% Unsecured 2,472,247 8,382,913 10,855,160 38,628,554 17,850,471 16,254,959 255,432 5.41% Unsecured 175,487 - 175,487 13.03% Unsecured 11,451,387 2,126,669 13,578,056 33.25% Unsecured 4,304,802 11,794,567 16,099,369 8.13% Unsecured 10.30% Unsecured - 9,358 209,395 390,065 209,395 399,423 - - - - - 1,022,595 6,999,683 2,029,640 22,326,036 21,366,273 21,366,273 21,366,273 64,098,819 77,750,800 77,750,800 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Total Non- current at 12-31-2015 ThCh$ 23,324,709 25,004,650 - 1,080,762 90,502,563 Total Non- current at 12-31-2014 ThCh$ - - 72,989,416 24,355,676 1,022,595 6,999,683 - - - - - - - - - - - - Total 18,414,875 23,910,971 42,325,846 46,650,832 41,246,384 59,947,268 21,621,705 77,750,800 247,216,989 Fair value measurement and hierarchy The fair value of current and non-current bank borrowings as of December 31, 2015 was ThCh$ 423,123,934 (ThCh$ 378,488,796 as of December 31, 2014). The borrowings have been classified as Level 2 fair value measurement based on the entry data used in the valuation techniques used (see Note 3.h). 438 2015 Annual Report Enersis                                                                                                                                                           Bank loans by currency and contractual maturity as of December 31, 2015 and 2014 are as follows: Summary of bank loans by currency and maturity Country Currency One to three Three to twelve Nominal Interest Rate Secured/ Unsecured Current Maturity months ThCh$ Total Current at 12-31-2015 months ThCh$ ThCh$ Peru Peru Argentina Argentina Colombia Brasil Chile Chile Peru Peru Argentina Argentina Colombia Brazil US$ Soles US$ Ar$ CP Real US$ Ch$ US$ Sol US$ Ar$ CP Real Country Currency One to three Three to twelve Nominal Interest Rate Secured/ Unsecured Current Maturity months ThCh$ - 1,594 5.98% Unsecured 5.47% Unsecured Total Current at 12-31-2014 months ThCh$ ThCh$ 1,007,362 1,007,362 - - 1,594 175,487 5.41% Unsecured 175,487 13.03% Unsecured 11,451,387 2,126,669 13,578,056 33.25% Unsecured 4,304,802 11,794,567 16,099,369 8.13% Unsecured 10.30% Unsecured - 9,358 209,395 390,065 209,395 399,423 Fair value measurement and hierarchy The fair value of current and non-current bank borrowings as of December 31, 2015 was ThCh$ 423,123,934 (ThCh$ 378,488,796 as of December 31, 2014). The borrowings have been classified as Level 2 fair value measurement based on the entry data used in the valuation techniques used (see Note 3.h). Maturity Non-current One to two years Two to three years Three to four years Four to five years Over five years Total Non- current at 12-31-2015 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 2.40% Unsecured 26,650,675 2,833,429 29,484,104 3,777,906 19,247,361 299,442 5.20% Unsecured 12,712,792 13.13% Unsecured 37.06% Unsecured 3,899,595 2,693,226 - - 12,712,792 3,899,595 4,809,318 7,502,544 6.46% Unsecured 32,928,994 76,448,340 109,377,334 2,083,721 22,920,929 - 1,080,762 29,066,078 - - - - - - - 14.53% Unsecured 9,045,598 16,099,578 25,145,176 30,167,521 30,167,521 30,167,521 Total 87,930,880 100,190,665 188,121,545 66,175,988 72,335,811 30,466,963 - - - - - - - - - - - 23,324,709 25,004,650 - 1,080,762 63,647,258 92,713,336 - 90,502,563 63,647,258 232,626,020 Maturity Non-current One to two years Two to three years Three to four years Four to five years Over five years Total Non- current at 12-31-2014 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 2.93% Unsecured 2,472,247 8,382,913 10,855,160 38,628,554 17,850,471 16,254,959 255,432 - - - - - - - - - 2,029,640 22,326,036 - - - - - - 1,022,595 6,999,683 - - 21,366,273 21,366,273 21,366,273 - 64,098,819 - - - - - - - - 72,989,416 24,355,676 1,022,595 6,999,683 77,750,800 77,750,800 - - - - Total 18,414,875 23,910,971 42,325,846 46,650,832 41,246,384 59,947,268 21,621,705 77,750,800 247,216,989 439 Consolidated Financial Statements                                                                                                                                                          Chinango S.A.C. Chinango S.A.C. Chinango S.A.C. Chinango S.A.C. Cien S.A. Coelce S.A. Coelce S.A. Coelce S.A. Edegel S.A.A Edegel S.A.A Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edesur S.A. Edesur S.A. Edesur S.A. Edesur S.A. Edesur S.A. Edesur S.A. Identification of bank borrowings by company In Appendix 5, letter a), are shown the estimated future cash flows (undiscounted) that the Group will have to disburse to settle the bank loans detailed above. Taxpayer ID No. (RUT) Company Country Taxpayer ID No. (RUT) Financial Institution Country Currency Foreign Ampla Energía S.A. 96.800.570-7 Chilectra S.A. Brasil Chile Peru Peru Peru Peru Brasil Brasil Brasil Brasil Peru Peru Peru Peru Peru Peru Peru Peru Peru Foreign Banco do Brasil 97.004.000-5 Líneas de crédito Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Banco Scotiabank Banco de Credito del Peru Bank Of Nova Scotia Bank Of Nova Scotia Bndes Banco Itaú Brasil Banco do Brasil Banco Santander Banco Continental Bank Nova Scotia Banco de Interbank Banco de Interbank Banco Continental Banco Continental Banco Continental Banco Continental Banco de Interbank Brazil Chile Peru Peru Peru Peru Brasil Brasil Brasil Brasil Peru Peru Peru Peru Peru Peru Peru Peru Peru Real Ch$ US$ US$ US$ US$ Real Real Real Real US$ US$ Soles Soles Soles Soles Soles Soles Soles 3.49% 3.51% Monthly 14.39% 14.68% Semi-annually 13.72% 13.97% Yearly 13.80% 15.76% Other 3.44% 3.36% Quarterly 9,045,598 - 1.08% 1.06% At maturity 25,619,644 6.90% 6.73% Quarterly 5.83% 5.71% Quarterly 5.10% 5.01% Quarterly 5.10% 5.01% Quarterly 5.10% 5.01% Quarterly 5.10% 5.01% Quarterly 28,776 95,383 14,718 23,807 15,918 14,416 4.67% 4.59% Quarterly 12,519,774 Argentina Foreign Banco Ciudad de Buenos Aires Argentina $ Arg 34.64% 30.07% Monthly Argentina Foreign Banco Itaú Argentina Argentina $ Arg 38.20% 32.79% Monthly Argentina Foreign Banco Provincia de Buenos Aires Argentina $ Arg 35.36% 30.67% Monthly Argentina Foreign Banco Santander Río Argentina $ Arg 29.74% 26.91% Quarterly - - 83,049 - Argentina Foreign Banco Santander Río Argentina $ Arg 45.20% 37.88% Quarterly 169,444 274,065 443,509 Argentina Foreign ICB Argentina Argentina $ Arg 34.06% 29.50% Quarterly Emgesa S.A. E.S.P. Colombia Foreign Banco Corpbanca Emgesa S.A. E.S.P. Colombia Foreign BBVA Colombia Emgesa S.A. E.S.P. Colombia Foreign Banco de Bogota Emgesa S.A. E.S.P. Colombia Foreign AV VILLAS Emgesa S.A. E.S.P. Colombia Foreign Citibank Colombia Emgesa S.A. E.S.P. Colombia Foreign BBVA Colombia Emgesa S.A. E.S.P. Colombia Foreign Banco de Bogota Emgesa S.A. E.S.P. Colombia Foreign Banco de Crédito del Peru Emgesa S.A. E.S.P. Colombia Foreign Banco de Crédito del Peru Emgesa S.A. E.S.P. Colombia Foreign Banco de Crédito del Peru Emgesa S.A. E.S.P. Colombia Foreign The Bank Of Tokyo Emgesa S.A. E.S.P. Colombia Foreign Banco Davivienda Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col 5.87% 5.70% At maturity 5.93% 5.76% At maturity 5.65% 5.50% At maturity 7.02% 6.90% At maturity 6.30% 6.15% At maturity 8.39% 8.22% At maturity - - - - - - 8.27% 8.11% At maturity 135,920 3,353,778 3,489,698 8.30% 8.14% At maturity 48,510 1,192,454 1,240,964 6.06% 5.93% At maturity 5.57% 6.01% At maturity 11,038,653 5,169,932 - - 11,038,653 5,169,932 6.30% 6.16% At maturity 361,969 27,472,753 27,834,722 6.84% 6.66% At maturity 13,251,721 - 13,251,721 Endesa Argentina S.A. Argentina Foreign Citibank Argentina $ Arg 34.23% 32.75% At maturity 91.081.000-6 Endesa Chile S.A. 91.081.000-6 Endesa Chile S.A. Chile Chile Foreign B.N.P. Paribas 97.004.000-5 Banco Santander U.S.A Chile US$ Ch$ 6.32% 5.98% Semi-annually 6.00% 6.00% Monthly Central Costanera S.A. Argentina Foreign Banco Galicia Argentina $ Arg 51.46% 42.24% At maturity Central Costanera S.A. Argentina Foreign Banco Itaú Argentina Argentina $ Arg 55.07% 44.68% At maturity Central Costanera S.A. Argentina Foreign Banco Santander Río Argentina $ Arg 44.16% 37.14% At maturity Central Costanera S.A. Argentina Foreign Banco Supervielle Argentina $ Arg 49.96% 41.21% At maturity Central Costanera S.A. Argentina Foreign Citibank Argentina $ Arg 45.10% 37.81% At maturity Central Costanera S.A. Argentina Foreign Credit Suisse International Argentina US$ 14.84% 13.92% Quarterly 1,216,306 - 1,216,306 Central Costanera S.A. Argentina Foreign ICBC Argentina Argentina $ Arg 51.97% 42.59% At maturity 291,321 291,321 94.271.00-3 Enersis S.A. Chile 97.004.000-5 Banco Santander Chile Chile Ch$ 4.50% 4.50% At maturity H. El Chocón S.A. Argentina Foreign Banco Macro Argentina $ Arg 34.46% 31.10% At maturity H. El Chocón S.A. Argentina Foreign Deutsche Bank H. El Chocón S.A. Argentina Foreign Standard Bank H. El Chocón S.A. Argentina Foreign Banco Itau Argentina Argentina Argentina US$ US$ US$ 13.50% 12.86% Quarterly 13.50% 12.86% Quarterly 13.50% 12.86% Quarterly H. El Chocón S.A. Argentina Foreign Banco Santander - Sindicado IV Argentina $ Arg 40.59% 35.54% Quarterly H. El Chocón S.A. Argentina Foreign Banco Itau- Sindicado IV Argentina $ Arg 40.59% 35.54% Quarterly H. El Chocón S.A. Argentina Foreign Banco Galicia - Sindicado IV Argentina $ Arg 40.59% 35.54% Quarterly H. El Chocón S.A. Argentina Foreign Banco Hipotecario - Sindicado IV Argentina $ Arg 40.59% 35.54% Quarterly H. El Chocón S.A. Argentina Foreign Banco Ciudad -Sindicado IV Argentina $ Arg 40.59% 35.54% Quarterly H. El Chocón S.A. Argentina Foreign ICBC Argentina Argentina $ Arg 40.59% 35.54% Quarterly 229,399 510,935 - - - - 20,318,330 20,318,330 13,509,598 13,509,598 10,462,152 10,462,152 139,275 139,275 2,922,289 438,505 - - - - - - - - - - - 714,607 271,439 181,232 259,139 852,379 2,922,289 438,505 - - 714,607 271,439 181,232 259,139 852,379 - - 1,119,924 1,341,641 670,824 670,824 202,930 185,284 176,461 61,761 26,469 - - - - - 451,981 412,679 393,027 137,560 58,954 - 1,119,924 1,341,641 670,824 670,824 654,911 597,963 569,488 199,321 85,423 740,334 Effective Interest Rate Nominal Interest Rate Amortization 13.58% 13.71% At maturity 6.00% 6.00% Other 3.98% 3.96% Quarterly 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 Three to four Four to five years years years Over five years Total Non- Less than 90 More than 90 current days days Total Current One to two Two to three Three to four Four to five years years years years Over five years 12-31-2015 12-31-2014 - - - 400,960 400,960 7,765,896 7,765,896 7,765,896 23,297,688 390,065 390,065 9,920,055 9,920,055 9,920,055 - - - - 133 133 260,672 564,193 824,865 752,258 752,258 15,233,217 2.17% 2.06% Quarterly 244,599 601,653 846,252 802,204 18,049,594 3.25% 3.07% Quarterly 458,314 1,333,451 1,791,765 1,777,935 395,746 1,137,486 1,533,232 1,516,648 1,516,648 3.48% 3.40% Quarterly 328,118 898,325 1,226,443 1,197,767 1,197,767 299,442 287,425 766,306 1,053,731 1,021,742 1,021,742 1,021,742 255,432 - - - - - 1,128,884 1,128,884 14,569,734 14,569,734 8,960,650 8,960,650 8,960,650 13,440,975 13,440,975 13,440,975 9,358 9,358 11,446,218 11,446,218 11,446,218 34,338,654 - - - - - - - - - - - - - - 9,045,598 - 25,619,644 28,776 95,383 14,718 23,807 15,918 14,416 12,519,774 - - 83,049 - 2,083,721 4,375,814 3,125,581 5,209,302 5,000,930 5,209,302 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 259,978 120,187 73,961 115,564 381,640 129,432 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 46,952,895 46,952,895 16,694,363 16,694,363 55,892 153,503 153,503 20,393,652 20,393,652 57,357,148 57,357,148 1,516,649 5,914,928 7,431,577 13,498,170 14,559,823 11,755 21,839,736 2,029,640 4,262,243 3,044,460 5,074,099 4,871,135 5,074,099 3,157,116 3,243,411 807,217 47,485 1,435,053 1,482,538 11,755 28,029 92,908 12,224 19,669 12,130 10,527 - 86,295 20,520 434,480 566,446 287,700 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 18,851,798 1,777,935 2,694,976 26,881,950 40,322,925 2,083,721 4,375,814 3,125,581 5,209,302 5,000,930 5,209,302 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 28,029 92,908 12,224 19,669 12,130 10,527 827,737 434,480 566,446 287,700 55,892 710,351 1,338 800,033 302,809 185,138 289,401 123 1,461,573 5,725,691 2,862,848 2,862,848 972,270 887,725 845,452 295,909 126,818 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 853,856 350,571 215,736 337,088 862,890 787,856 750,339 262,618 112,552 975,440 955,718 1,113,199 2,126,669 2,126,669 1,022,595 324,772 324,772 377,538 710,351 1,338 1,007,362 1,007,362 259,978 120,187 73,961 115,564 381,640 129,432 800,033 302,809 185,138 289,401 955,718 813,581 742,835 707,462 247,612 106,119 123 1,461,573 5,725,691 2,862,848 2,862,848 158,689 144,890 137,990 48,297 20,699 179,387 919,701 1,099,088 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Total Non- current 29,760,165 16,737,733 3,033,296 3,320,658 28,057,993 21,839,736 2,029,640 4,262,243 3,044,460 5,074,099 4,871,135 5,074,099 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 853,856 350,571 215,736 337,088 1,113,199 1,022,595 377,538 862,890 787,856 750,339 262,618 112,552 975,440 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 29,066,078 29,066,078 Totals 87,930,880 100,190,665 188,121,545 66,175,988 72,335,811 30,466,963 63,647,258 232,626,020 18,414,875 23,910,971 42,325,846 46,650,832 41,246,384 59,947,268 21,621,705 77,750,800 247,216,989 2015 Annual Report Enersis Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign 440 Company Country Financial Institution Country Currency Interest Interest Amortization Current ThCh$ Non-current ThCh$ Current ThCh$ Non-current ThCh$ Less than 90 More than 90 days 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 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 12-31-2015 12-31-2014 Identification of bank borrowings by company In Appendix 5, letter a), are shown the estimated future cash flows (undiscounted) that the Group will have to disburse to settle the bank loans detailed above. Brazil Chile Peru Peru Peru Peru Brasil Brasil Brasil Brasil Peru Peru Peru Peru Peru Peru Peru Peru Peru Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia U.S.A Chile Real Ch$ US$ US$ US$ US$ Real Real Real Real US$ US$ Soles Soles Soles Soles Soles Soles Soles $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col US$ Ch$ 96.800.570-7 Chilectra S.A. 97.004.000-5 Líneas de crédito Taxpayer ID No. (RUT) Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Brasil Chile Peru Peru Peru Peru Brasil Brasil Brasil Brasil Peru Peru Peru Peru Peru Peru Peru Peru Peru Banco Scotiabank Banco de Credito del Peru Bank Of Nova Scotia Bank Of Nova Scotia Bndes Banco Itaú Brasil Banco do Brasil Banco Santander Banco Continental Bank Nova Scotia Banco de Interbank Banco de Interbank Banco Continental Banco Continental Banco Continental Banco Continental Banco de Interbank Chinango S.A.C. Chinango S.A.C. Chinango S.A.C. Chinango S.A.C. Cien S.A. Coelce S.A. Coelce S.A. Coelce S.A. Edegel S.A.A Edegel S.A.A Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edesur S.A. Edesur S.A. Edesur S.A. Edesur S.A. Edesur S.A. Edesur S.A. Effective Nominal Rate Rate 6.00% 6.00% Other 3.98% 3.96% Quarterly 3.49% 3.51% Monthly 14.39% 14.68% Semi-annually 13.72% 13.97% Yearly 3.44% 3.36% Quarterly 6.90% 6.73% Quarterly 5.83% 5.71% Quarterly 5.10% 5.01% Quarterly 5.10% 5.01% Quarterly 5.10% 5.01% Quarterly 5.10% 5.01% Quarterly 13.80% 15.76% Other 9,045,598 9,045,598 1.08% 1.06% At maturity 25,619,644 25,619,644 28,776 95,383 14,718 23,807 15,918 14,416 28,776 95,383 14,718 23,807 15,918 14,416 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 20,318,330 20,318,330 13,509,598 13,509,598 10,462,152 10,462,152 139,275 139,275 2,922,289 438,505 714,607 271,439 181,232 259,139 852,379 1,119,924 1,341,641 670,824 670,824 654,911 597,963 569,488 199,321 85,423 740,334 714,607 271,439 181,232 259,139 852,379 451,981 412,679 393,027 137,560 58,954 2,922,289 438,505 1,119,924 1,341,641 670,824 670,824 202,930 185,284 176,461 61,761 26,469 Argentina Foreign Banco Ciudad de Buenos Aires Argentina $ Arg 34.64% 30.07% Monthly Argentina Foreign Banco Itaú Argentina Argentina $ Arg 38.20% 32.79% Monthly Argentina Foreign Banco Provincia de Buenos Aires Argentina $ Arg 35.36% 30.67% Monthly 83,049 83,049 Argentina Foreign Banco Santander Río Argentina $ Arg 29.74% 26.91% Quarterly Argentina Foreign Banco Santander Río Argentina $ Arg 45.20% 37.88% Quarterly 169,444 274,065 443,509 4.67% 4.59% Quarterly 12,519,774 12,519,774 Argentina Foreign ICB Argentina Argentina $ Arg 34.06% 29.50% Quarterly Emgesa S.A. E.S.P. Colombia Foreign Banco Corpbanca 8.39% 8.22% At maturity Emgesa S.A. E.S.P. Colombia Foreign BBVA Colombia 8.27% 8.11% At maturity 135,920 3,353,778 3,489,698 Emgesa S.A. E.S.P. Colombia Foreign Banco de Bogota 8.30% 8.14% At maturity 48,510 1,192,454 1,240,964 Emgesa S.A. E.S.P. Colombia Foreign AV VILLAS Emgesa S.A. E.S.P. Colombia Foreign Citibank Colombia 6.06% 5.93% At maturity 5.57% 6.01% At maturity 11,038,653 5,169,932 11,038,653 5,169,932 Emgesa S.A. E.S.P. Colombia Foreign BBVA Colombia 6.30% 6.16% At maturity 361,969 27,472,753 27,834,722 Emgesa S.A. E.S.P. Colombia Foreign Banco de Bogota 6.84% 6.66% At maturity 13,251,721 13,251,721 Emgesa S.A. E.S.P. Colombia Foreign Banco de Crédito del Peru Emgesa S.A. E.S.P. Colombia Foreign Banco de Crédito del Peru Emgesa S.A. E.S.P. Colombia Foreign Banco de Crédito del Peru Emgesa S.A. E.S.P. Colombia Foreign The Bank Of Tokyo Emgesa S.A. E.S.P. Colombia Foreign Banco Davivienda Endesa Argentina S.A. Argentina Foreign Citibank Argentina $ Arg 34.23% 32.75% At maturity 91.081.000-6 Endesa Chile S.A. Foreign B.N.P. Paribas 91.081.000-6 Endesa Chile S.A. 97.004.000-5 Banco Santander Chile Chile Central Costanera S.A. Argentina Foreign Banco Galicia Argentina $ Arg 51.46% 42.24% At maturity Central Costanera S.A. Argentina Foreign Banco Itaú Argentina Argentina $ Arg 55.07% 44.68% At maturity Central Costanera S.A. Argentina Foreign Banco Santander Río Argentina $ Arg 44.16% 37.14% At maturity Central Costanera S.A. Argentina Foreign Banco Supervielle Argentina $ Arg 49.96% 41.21% At maturity Central Costanera S.A. Argentina Foreign Citibank Argentina $ Arg 45.10% 37.81% At maturity 5.87% 5.70% At maturity 5.93% 5.76% At maturity 5.65% 5.50% At maturity 7.02% 6.90% At maturity 6.30% 6.15% At maturity 6.32% 5.98% Semi-annually 6.00% 6.00% Monthly Central Costanera S.A. Argentina Foreign Credit Suisse International Argentina US$ 14.84% 13.92% Quarterly 1,216,306 1,216,306 Central Costanera S.A. Argentina Foreign ICBC Argentina Argentina $ Arg 51.97% 42.59% At maturity 291,321 291,321 94.271.00-3 Enersis S.A. Chile 97.004.000-5 Banco Santander Chile Chile Ch$ 4.50% 4.50% At maturity H. El Chocón S.A. Argentina Foreign Banco Macro Argentina $ Arg 34.46% 31.10% At maturity H. El Chocón S.A. Argentina Foreign Deutsche Bank H. El Chocón S.A. Argentina Foreign Standard Bank H. El Chocón S.A. Argentina Foreign Banco Itau Argentina Argentina Argentina US$ US$ US$ 13.50% 12.86% Quarterly 13.50% 12.86% Quarterly 13.50% 12.86% Quarterly H. El Chocón S.A. Argentina Foreign Banco Santander - Sindicado IV Argentina $ Arg 40.59% 35.54% Quarterly H. El Chocón S.A. Argentina Foreign Banco Itau- Sindicado IV Argentina $ Arg 40.59% 35.54% Quarterly H. El Chocón S.A. Argentina Foreign Banco Galicia - Sindicado IV Argentina $ Arg 40.59% 35.54% Quarterly H. El Chocón S.A. Argentina Foreign Banco Hipotecario - Sindicado IV Argentina $ Arg 40.59% 35.54% Quarterly H. El Chocón S.A. Argentina Foreign Banco Ciudad -Sindicado IV Argentina $ Arg 40.59% 35.54% Quarterly H. El Chocón S.A. Argentina Foreign ICBC Argentina Argentina $ Arg 40.59% 35.54% Quarterly 229,399 510,935 Taxpayer ID No. (RUT) Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Ampla Energía S.A. Foreign Banco do Brasil 13.58% 13.71% At maturity 400,960 400,960 7,765,896 7,765,896 7,765,896 2.17% 2.06% Quarterly 244,599 601,653 846,252 3.25% 3.07% Quarterly 458,314 1,333,451 1,791,765 - - - - 802,204 18,049,594 1,777,935 - - - - - 3.48% 3.40% Quarterly 328,118 898,325 1,226,443 1,197,767 1,197,767 299,442 1,128,884 1,128,884 14,569,734 14,569,734 - - - 8,960,650 8,960,650 8,960,650 13,440,975 13,440,975 13,440,975 - - - 2,083,721 - - - - - - - - - - - - - - - - - - - - - - 29,066,078 - - - - 259,978 120,187 73,961 115,564 381,640 - 129,432 - - - - - - - - - - - - - - - 4,375,814 3,125,581 5,209,302 5,000,930 5,209,302 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Totals 87,930,880 100,190,665 188,121,545 66,175,988 72,335,811 30,466,963 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 23,297,688 - - 18,851,798 1,777,935 2,694,976 26,881,950 40,322,925 - - - 2,083,721 4,375,814 3,125,581 5,209,302 5,000,930 5,209,302 - - - - - - - - 46,952,895 46,952,895 16,694,363 16,694,363 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 29,066,078 - - - - 259,978 120,187 73,961 115,564 381,640 - 129,432 - - - - - - - - - - - - 133 390,065 390,065 - 133 - - 9,920,055 9,920,055 9,920,055 - - 260,672 564,193 824,865 752,258 752,258 15,233,217 - - - - - 395,746 1,137,486 1,533,232 1,516,648 1,516,648 - - 287,425 766,306 1,053,731 1,021,742 1,021,742 1,021,742 255,432 - - - - - 9,358 - - - 11,446,218 11,446,218 11,446,218 - - - - 9,358 - - - - - - - 1,516,649 5,914,928 7,431,577 13,498,170 14,559,823 11,755 21,839,736 - - - - 11,755 28,029 92,908 12,224 19,669 12,130 10,527 - 86,295 20,520 434,480 - - - - - - - - 28,029 92,908 12,224 19,669 12,130 10,527 - 3,157,116 3,243,411 807,217 - 827,737 434,480 47,485 1,435,053 1,482,538 566,446 287,700 - - - - - - - - - - - - 710,351 - - 55,892 566,446 287,700 55,892 153,503 153,503 - - - - - - - - - - - - - - - - - - - - - 710,351 - 1,007,362 1,007,362 1,338 - - - - - - - 123 1,461,573 5,725,691 2,862,848 2,862,848 158,689 144,890 137,990 48,297 20,699 - 800,033 302,809 185,138 289,401 955,718 1,338 800,033 302,809 185,138 289,401 - - - - - 813,581 742,835 707,462 247,612 106,119 123 1,461,573 5,725,691 2,862,848 2,862,848 972,270 887,725 845,452 295,909 126,818 179,387 919,701 1,099,088 - - 2,029,640 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4,262,243 3,044,460 5,074,099 4,871,135 5,074,099 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 853,856 350,571 215,736 337,088 - - - - - 862,890 787,856 750,339 262,618 112,552 975,440 955,718 1,113,199 2,126,669 2,126,669 1,022,595 324,772 324,772 377,538 - - - - - - - - - - - - - - - - - - - - - - - - - 29,760,165 - 16,737,733 - 3,033,296 3,320,658 - 34,338,654 - - 28,057,993 21,839,736 2,029,640 4,262,243 3,044,460 5,074,099 4,871,135 5,074,099 - - - - - - - 20,393,652 20,393,652 57,357,148 57,357,148 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 853,856 350,571 215,736 337,088 1,113,199 1,022,595 377,538 - - - - - 862,890 787,856 750,339 262,618 112,552 975,440 63,647,258 232,626,020 18,414,875 23,910,971 42,325,846 46,650,832 41,246,384 59,947,268 21,621,705 77,750,800 247,216,989 441 Consolidated Financial Statements20.2 Unsecured liabilities The detail of Unsecured Liabilities by currency and maturity as of December 31, 2015 and 2014 is as follows: Summary of unsecured liabilities by currency and maturity Country Currency Annual Nominal Rate Secured/ Unsecured Current Maturity One to three months ThCh$ Three to twelve months ThCh$ Chile Chile Peru Peru Colombia Brasil US$ U.F. US$ Sol CP Real 7.00% Unsecured 5.75% Unsecured 6.50% Unsecured 6.44% Unsecured 10.81% Unsecured 15.64% Unsecured - - 1,025,402 11,874,390 60,132,757 - 179,552,878 3,417,313 14,223,478 9,345,624 - 76,649,745 Total Current at 12-31-2015 ThCh$ 179,552,878 3,417,313 15,248,880 21,220,014 60,132,757 76,649,745 Total 73,032,549 283,189,038 356,221,587 237,428,066 197,181,217 176,261,853 92,247,184 688,597,087 1,391,715,407 Country Currency Annual Nominal Rate Secured/ Unsecured Current Maturity One to three months ThCh$ Three to twelve months ThCh$ Total Current at 12-31-2014 ThCh$ Chile Chile Peru Peru Colombia Brazil US$ U.F. US$ Sol CP Real 7.17% 5.57% 6.59% 6.57% 8.16% Unsecured 10,600,825 124,464,832 135,065,657 Unsecured 1,523,693 8,154,883 Unsecured 4,852,113 - 9,678,576 4,852,113 Unsecured 7,369,056 23,437,141 30,806,197 Unsecured 92,570,006 - 92,570,006 12.55% Unsecured - 35,952,570 35,952,570 80,341,173 104,952,742 93,563,508 49,266,449 - Total 116,915,693 192,009,426 308,925,119 309,011,927 276,500,977 230,670,044 207,213,267 1,542,021,778 2,565,417,993 Non-current Maturity Two to three Three to four Four to five One to two years ThCh$ years ThCh$ years ThCh$ years Over five years ThCh$ ThCh$ - - 3,546,564 20,628,837 3,750,488 7,111,739 125,441,571 107,284,492 87,811,094 79,034,498 - 3,966,142 5,807,446 44,799,999 80,913,285 40,774,981 4,194,193 7,111,739 27,088,371 53,852,881 - - 609,317 6,097,254 7,111,739 123,043,719 551,735,058 - Non-current Maturity One to two years Two to three Three to four Four to five years ThCh$ years ThCh$ years Over five years ThCh$ ThCh$ 153,936,502 - 420,471,172 8,345,041 8,530,345 8,726,297 31,321,793 272,880,640 12,133,186 6,066,593 4,953,980 12,133,186 17,292,530 20,093,432 29,429,775 146,235,538 36,963,495 142,924,458 122,313,646 92,241,270 690,301,242 - - - - - - Total Non-current at 12-31-2015 ThCh$ 609,317 21,554,641 27,142,663 215,560,926 919,227,287 207,620,573 Total Non-current at 12-31-2014 ThCh$ 574,407,674 329,804,116 35,286,945 213,051,275 1,084,744,111 328,123,872 442 2015 Annual Report Enersis                                                                                                                                                                           20.2 Unsecured liabilities The detail of Unsecured Liabilities by currency and maturity as of December 31, 2015 and 2014 is as follows: Summary of unsecured liabilities by currency and maturity Country Currency Annual Nominal Rate Secured/ Unsecured Current Maturity One to three months ThCh$ Three to twelve months ThCh$ Total Current at 12-31-2015 ThCh$ 7.00% Unsecured 5.75% Unsecured 6.50% Unsecured 6.44% Unsecured 10.81% Unsecured 15.64% Unsecured 1,025,402 14,223,478 - - - 179,552,878 179,552,878 3,417,313 9,345,624 - 76,649,745 3,417,313 15,248,880 21,220,014 60,132,757 76,649,745 11,874,390 60,132,757 Chile Chile Peru Peru Colombia Brasil Chile Chile Peru Peru Colombia Brazil US$ U.F. US$ Sol CP Real US$ U.F. US$ Sol CP Real Country Currency Annual Nominal Rate Secured/ Unsecured Current Maturity One to three months ThCh$ Three to twelve months Total Current at 12-31-2014 ThCh$ ThCh$ 7.17% 5.57% 6.59% 6.57% 8.16% Unsecured 10,600,825 124,464,832 135,065,657 Unsecured 1,523,693 8,154,883 Unsecured 4,852,113 9,678,576 4,852,113 Unsecured 7,369,056 23,437,141 30,806,197 Unsecured 92,570,006 92,570,006 - - Non-current Maturity One to two years ThCh$ Two to three years ThCh$ Three to four years ThCh$ Four to five years ThCh$ Over five years ThCh$ - 3,546,564 - 20,628,837 125,441,571 87,811,094 - 3,750,488 7,111,739 - 107,284,492 79,034,498 - 3,966,142 5,807,446 44,799,999 80,913,285 40,774,981 - 4,194,193 7,111,739 27,088,371 53,852,881 - 609,317 6,097,254 7,111,739 123,043,719 551,735,058 - Total Non-current at 12-31-2015 ThCh$ 609,317 21,554,641 27,142,663 215,560,926 919,227,287 207,620,573 Total 73,032,549 283,189,038 356,221,587 237,428,066 197,181,217 176,261,853 92,247,184 688,597,087 1,391,715,407 Non-current Maturity One to two years Two to three years ThCh$ Three to four years ThCh$ Four to five years ThCh$ Over five years ThCh$ 153,936,502 - - - 420,471,172 8,345,041 8,530,345 8,726,297 31,321,793 272,880,640 12,133,186 - 6,066,593 4,953,980 12,133,186 17,292,530 20,093,432 - 29,429,775 146,235,538 36,963,495 142,924,458 122,313,646 92,241,270 690,301,242 12.55% Unsecured - 35,952,570 35,952,570 80,341,173 104,952,742 93,563,508 49,266,449 - Total Non-current at 12-31-2014 ThCh$ 574,407,674 329,804,116 35,286,945 213,051,275 1,084,744,111 328,123,872 Total 116,915,693 192,009,426 308,925,119 309,011,927 276,500,977 230,670,044 207,213,267 1,542,021,778 2,565,417,993 443 Consolidated Financial Statements                                                                                                                                                                          20.3 Secured liabilities As of December 31, 2015 and 2014 there are no secured liabilities. Fair value measurement and hierarchy The fair value of current and non-current secured and unsecured liabilities as of December 31, 2015 totaled ThCh$ 1,768,663,119 (ThCh$ 3,207,640,549 as of December 31, 2014). These liabilities have been classified as Level 2 fair value measurement based on the entry data used in the valuation techniques used (see Note 3.h). It is important to note that these financial liabilities are measured at amortized cost (see Note 3 g.4). Secured and unsecured liabilities by company In Appendix 5, letter b), are shown the estimated future cash flows (undiscounted) that the Group will have to disburse to settle the secured and unsecured liabilities detailed above. Taxpayer ID No. (RUT) Foreign Foreign Foreign Foreign Foreign Foreign Bonos 1ª Serie 16 Bonos 1ª Serie 17 Bonos 1ª Serie 18 Bonos 2ª Serie 26 Bonos 2ª Serie 27 Bonos 2ª Serie 28 Ampla Energía S.A. Brazil Ampla Energía S.A. Brazil Ampla Energía S.A. Brazil Ampla Energía S.A. Brazil Ampla Energía S.A. Brazil Ampla Energía S.A. Brazil Taxpayer ID No. (RUT) Company Country Financial Institution Country Currency Effective Interest Rate Nominal Interest Rate Secured 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 Three to four Four to five More than 5 Total Non- Less than 90 More than 90 One to two Two to three Three to four Four to five More than 5 Total Non- years years years years current days days years years years years years current Total Current 12-31-2015 12-31-2014 Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Codensa Codensa Codensa Codensa Codensa Codensa Coelce S.A. Coelce S.A. Edegel S.A.A Edegel S.A.A Edegel S.A.A Edegel S.A.A Edegel S.A.A Edegel S.A.A Edegel S.A.A Edegel S.A.A Edegel S.A.A Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Foreign Edelnor S.A.A. Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Brazil Brazil Brazil Brazil Brazil Brazil Colombia Colombia Colombia Colombia Colombia Colombia Brazil Brazil Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Real Real Real Real Real Real CP CP CP CP CP CP Real Real Sol Sol US$ US$ US$ US$ US$ US$ US$ Sol Sol Sol Sol Sol Sol Sol Sol Sol Sol Sol Sol Sol Sol Sol Sol Sol Sol Sol Sol Sol Sol Sol 13.66% 13.71% 14.69% 13.55% 15.35% 14.69% 12.03% 12.29% 10.56% 11.50% 10.56% 10.15% 13.77% 17.07% 6.41% 6.38% 6.44% 7.93% 7.25% 6.73% 6.09% 5.86% 6.57% 7.22% 8.16% 8.00% 5.91% 6.63% 6.94% 7.12% 7.44% 8.06% 5.56% 7.03% 8.75% 6.28% 6.06% 6.50% 7.06% 5.00% 5.13% 6.75% 7.28% 6.50% 7.38% 6.78% 13.75% 13.89% 14.91% 18.97% 16.89% 14.91% 11.52% 11.76% 10.17% 11.03% 10.17% 9.78% 13.99% 17.79% 6.31% 6.28% 6.34% 7.78% 7.12% 6.63% 6.00% 5.78% 6.47% 7.09% 8.00% 7.85% 5.82% 6.52% 6.82% 7.00% 7.30% 7.91% 5.49% 6.91% 8.57% 6.19% 5.97% 6.40% 6.94% 4.94% 5.06% 6.64% 7.15% 6.40% 7.24% 6.67% No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No - - - - - - 10,550,152 10,550,152 9,072,396 9,072,396 1,980,285 1,980,285 16,645,720 16,645,720 2,256,837 2,256,837 1,980,285 1,980,285 480,031 121,021 32,826,348 613,975 531,899 77,582 - - - - 194,246 200,841 - - - - - - - 480,031 121,021 32,826,348 613,975 531,899 77,582 9,601,388 9,601,388 24,562,682 24,562,682 8,221 - - - - 8,221 - 194,246 200,841 - 215,945 7,111,739 7,327,684 117,344 7,111,739 7,229,083 102,787 194,239 - - 102,787 194,239 75,209 3,125,581 3,200,790 3,899,407 5,855,385 - - - - 185,972 - 204,447 135,116 - - - - - - 229,897 248,093 190,009 - - - - - - - - 3,899,407 5,855,385 - - - 5,226,830 5,226,830 - - - - - 185,972 - 204,447 135,116 - 111,978 111,978 87,726 43,642 91,977 61,354 - - - 75,245 102,450 310,080 87,726 43,642 91,977 61,354 229,897 248,093 190,009 75,245 102,450 310,080 7,111,739 7,111,739 7,111,739 7,111,739 6,066,593 6,066,593 6,066,593 8,960,650 8,960,650 8,960,650 8,960,650 14,750,376 14,750,376 22,653,731 22,888,844 22,853,681 8,960,650 8,960,650 8,960,650 87,436,064 17,886,817 40,616,490 8,960,650 26,881,950 29,500,752 68,396,256 26,881,950 87,436,064 17,886,817 43,227,965 43,227,965 40,616,490 41,363,265 41,363,265 13,508,284 13,508,284 13,392,075 97,895 97,895 11,183,110 11,446,218 3,842,192 3,842,192 22,666,150 22,706,738 22,651,006 2,206,338 2,206,338 16,792,364 17,045,383 17,045,383 2,627,046 2,627,046 26,615,437 26,615,443 26,615,443 341,784 36,963,495 99,597,748 20,393,652 46,308,886 23,525,037 23,473,978 46,999,015 1,168,497 1,168,497 27,069,558 27,179,554 27,195,944 12,502,318 12,502,318 11,904,066 5,209,304 5,209,304 8,008 5,209,302 5,807,446 7,111,739 7,111,739 5,209,302 5,807,446 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 419,979 106,657 341,784 530,570 447,227 64,396 156,702 165,699 171,325 3,977,405 184,210 100,099 87,681 165,694 73,257 5,176,988 199,141 131,609 223,930 241,654 185,078 6,251,163 6,251,163 181,145 4,167,442 4,167,442 10,418,604 10,418,604 8,334,884 8,334,884 109,072 109,072 6,118,518 6,118,518 10,418,604 10,418,604 4,167,442 6,251,163 8,334,884 8,334,884 10,418,604 10,418,604 10,418,604 10,418,604 7,397,209 7,397,209 10,418,604 10,418,604 12,502,325 12,502,325 20,837,209 20,837,209 85,449 42,509 89,590 59,762 73,293 99,791 306,923 306,923 - - - - - - - - - - - - - - - - - - - - - - - - - - 419,979 106,657 530,570 447,227 64,396 8,008 156,702 165,699 171,325 3,977,405 87,681 165,694 181,145 5,176,988 199,141 131,609 85,449 42,509 89,590 59,762 223,930 241,654 185,078 73,293 99,791 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 13,392,075 22,629,328 68,023,894 50,883,130 79,846,323 99,597,748 20,393,652 36,963,495 46,308,886 11,904,066 81,445,056 6,066,593 6,066,593 6,066,593 3,044,460 3,653,351 5,520,620 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 49,286,360 49,286,360 47,160,321 47,160,321 5,074,099 5,074,099 5,074,099 5,074,099 6,066,593 6,066,593 4,953,980 4,953,980 5,074,099 6,088,919 6,088,919 10,148,198 10,148,198 4,059,279 4,059,279 8,118,559 8,118,559 10,148,198 10,148,198 4,059,279 6,088,919 8,118,559 8,118,559 10,148,198 10,148,198 10,148,198 10,148,198 7,205,221 7,205,221 10,148,198 10,148,198 12,177,838 12,177,838 20,296,397 20,296,397 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 184,210 6,066,593 100,099 6,066,593 73,257 3,044,460 - 3,653,351 182,794 182,794 5,520,620 4,106,563 4,106,563 4,104,101 4,104,101 189,306 8,118,559 8,307,865 17,072 17,072 5,074,099 4,167,442 6,251,163 4,059,279 6,088,919 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Colombia Foreign Colombia Foreign Colombia Foreign B102 B103 B604 Colombia Foreign Bonos B12-13 Colombia Foreign Bonos B5-13 Colombia Foreign Bonos B7-14 Brazil Brazil Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Itaú 1 Itaú 2 Banco Continental Banco Continental Banco Continental Banco Continental Banco Continental Banco Scotiabank Banco Scotiabank Banco Scotiabank Banco Scotiabank AFP Horizonte AFP Integra AFP Integra AFP Integra AFP Prima AFP Prima AFP Prima AFP Prima AFP Profuturo FCR - Macrofondo FCR - Macrofondo Fondo -Fosersoe Interseguro Cia de Seguros Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional 444 2015 Annual Report Enersis 20.3 Secured liabilities As of December 31, 2015 and 2014 there are no secured liabilities. Fair value measurement and hierarchy The fair value of current and non-current secured and unsecured liabilities as of December 31, 2015 totaled ThCh$ 1,768,663,119 (ThCh$ 3,207,640,549 as of December 31, 2014). These liabilities have been classified as Level 2 fair value measurement based on the entry data used in the valuation techniques used (see Note 3.h). It is important to note that these financial liabilities are measured at amortized cost (see Note 3 g.4). Secured and unsecured liabilities by company In Appendix 5, letter b), are shown the estimated future cash flows (undiscounted) that the Group will have to disburse to settle the secured and unsecured liabilities detailed above. Taxpayer ID No. (RUT) Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Codensa Codensa Codensa Codensa Codensa Codensa Coelce S.A. Coelce S.A. Edegel S.A.A Edegel S.A.A Edegel S.A.A Edegel S.A.A Edegel S.A.A Edegel S.A.A Edegel S.A.A Edegel S.A.A Edegel S.A.A Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Taxpayer ID No. (RUT) Foreign Foreign Foreign Foreign Foreign Foreign Bonos 1ª Serie 16 Bonos 1ª Serie 17 Bonos 1ª Serie 18 Bonos 2ª Serie 26 Bonos 2ª Serie 27 Bonos 2ª Serie 28 Ampla Energía S.A. Brazil Ampla Energía S.A. Brazil Ampla Energía S.A. Brazil Ampla Energía S.A. Brazil Ampla Energía S.A. Brazil Ampla Energía S.A. Brazil Colombia Foreign Colombia Foreign Colombia Foreign B102 B103 B604 Colombia Foreign Bonos B12-13 Colombia Foreign Bonos B5-13 Colombia Foreign Bonos B7-14 Brazil Brazil Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Itaú 1 Itaú 2 Banco Continental Banco Continental Banco Continental Banco Continental Banco Continental Banco Scotiabank Banco Scotiabank Banco Scotiabank Banco Scotiabank AFP Horizonte AFP Integra AFP Integra AFP Integra AFP Prima AFP Prima AFP Prima AFP Prima AFP Profuturo FCR - Macrofondo FCR - Macrofondo Fondo -Fosersoe Interseguro Cia de Seguros Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Brazil Brazil Brazil Brazil Brazil Brazil Colombia Colombia Colombia Colombia Colombia Colombia Brazil Brazil Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Real Real Real Real Real Real CP CP CP CP CP CP Real Real Sol Sol US$ US$ US$ US$ US$ US$ US$ Sol Sol Sol Sol Sol Sol Sol Sol Sol Sol Sol Sol Sol Sol Sol Sol Sol Sol Sol Sol Sol Sol Sol 13.66% 13.71% 14.69% 13.55% 15.35% 14.69% 12.03% 12.29% 10.56% 11.50% 10.56% 10.15% 13.77% 17.07% 6.41% 6.38% 6.44% 7.93% 7.25% 6.73% 6.09% 5.86% 6.57% 7.22% 8.16% 8.00% 5.91% 6.63% 6.94% 7.12% 7.44% 8.06% 5.56% 7.03% 8.75% 6.28% 6.06% 6.50% 7.06% 5.00% 5.13% 6.75% 7.28% 6.50% 7.38% 6.78% 13.75% 13.89% 14.91% 18.97% 16.89% 14.91% 11.52% 11.76% 10.17% 11.03% 10.17% 9.78% 13.99% 17.79% 6.31% 6.28% 6.34% 7.78% 7.12% 6.63% 6.00% 5.78% 6.47% 7.09% 8.00% 7.85% 5.82% 6.52% 6.82% 7.00% 7.30% 7.91% 5.49% 6.91% 8.57% 6.19% 5.97% 6.40% 6.94% 4.94% 5.06% 6.64% 7.15% 6.40% 7.24% 6.67% No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No 215,945 7,111,739 7,327,684 117,344 7,111,739 7,229,083 75,209 3,125,581 3,200,790 - - - - - - - - - - - - - - - - - - - - - - - - - 480,031 121,021 32,826,348 613,975 531,899 77,582 194,246 200,841 102,787 194,239 3,899,407 5,855,385 185,972 204,447 135,116 229,897 248,093 190,009 10,550,152 10,550,152 9,072,396 9,072,396 1,980,285 1,980,285 16,645,720 16,645,720 2,256,837 2,256,837 1,980,285 1,980,285 9,601,388 9,601,388 24,562,682 24,562,682 8,221 8,221 - - - - - - - - - - - - - - - - - - - - - - - - - 480,031 121,021 32,826,348 613,975 531,899 77,582 194,246 200,841 102,787 194,239 3,899,407 5,855,385 - - - - - - - 185,972 204,447 135,116 87,726 43,642 91,977 61,354 229,897 248,093 190,009 75,245 102,450 310,080 87,726 43,642 91,977 61,354 75,245 102,450 310,080 5,226,830 5,226,830 Foreign Edelnor S.A.A. 111,978 111,978 Company Country Financial Institution Country Currency Effective Interest Rate Nominal Interest Rate Secured Current ThCh$ Non-current ThCh$ Current ThCh$ Non-current ThCh$ Less than 90 More than 90 days days Total Current One to two years Two to three years Three to four years Four to five years More than 5 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 5 years Total Non- current 12-31-2015 12-31-2014 13,508,284 13,508,284 13,392,075 - 97,895 97,895 11,183,110 11,446,218 - - - - 3,842,192 3,842,192 - 22,666,150 22,706,738 22,651,006 2,206,338 2,206,338 16,792,364 17,045,383 17,045,383 - 2,627,046 2,627,046 26,615,437 26,615,443 26,615,443 - 8,960,650 - - - - 8,960,650 8,960,650 8,960,650 14,750,376 14,750,376 - 22,653,731 22,888,844 22,853,681 8,960,650 8,960,650 8,960,650 87,436,064 - - - - - - - 17,886,817 - - 40,616,490 - - 23,525,037 23,473,978 - - - - - - - - - - - - - - - - - - - - - - - 4,167,442 6,251,163 - - - - - - - - - - - - - - - 7,111,739 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 5,209,302 - 5,807,446 - - - - - - - - - - - - - - - 4,167,442 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 7,111,739 - - - - - - - - 6,251,163 - - - - - - - - - - - - - - - - - - - - 8,960,650 26,881,950 29,500,752 68,396,256 26,881,950 87,436,064 17,886,817 - 43,227,965 43,227,965 - 40,616,490 41,363,265 41,363,265 - - - 46,999,015 5,209,304 5,209,304 - 5,209,302 7,111,739 7,111,739 5,807,446 - - - 7,111,739 7,111,739 - - - - - - - - - - - - - - - - - - - - - - 10,418,604 10,418,604 - - 4,167,442 - 8,334,884 8,334,884 10,418,604 10,418,604 - - 4,167,442 6,251,163 8,334,884 8,334,884 10,418,604 10,418,604 10,418,604 - 10,418,604 - 7,397,209 7,397,209 10,418,604 - 10,418,604 - - 12,502,325 12,502,325 20,837,209 20,837,209 - - - - - - 419,979 106,657 341,784 530,570 447,227 64,396 - - - 156,702 165,699 171,325 3,977,405 184,210 100,099 87,681 165,694 73,257 - 182,794 199,141 131,609 - - - - - - 223,930 241,654 185,078 - - - 12,502,318 12,502,318 11,904,066 1,168,497 1,168,497 27,069,558 27,179,554 27,195,944 - - - - - 419,979 106,657 341,784 36,963,495 530,570 447,227 64,396 - - - - - - - - - - 8,008 - - - - - - - - - - - 8,008 156,702 165,699 171,325 3,977,405 - - - - - 184,210 6,066,593 100,099 6,066,593 87,681 165,694 - - 73,257 3,044,460 - 3,653,351 182,794 5,520,620 - - - - 181,145 5,176,988 199,141 131,609 6,118,518 6,118,518 109,072 109,072 85,449 42,509 89,590 59,762 - - - 73,293 99,791 85,449 42,509 89,590 59,762 223,930 241,654 185,078 73,293 99,791 306,923 306,923 - - - - - - - - - - - - - - - - - 99,597,748 - - - - - - - - 20,393,652 - - 46,308,886 - - - - - - - - - - - - - - - - - - - - - - - - - 4,059,279 6,088,919 - - - - - - - - - - - - - - - 6,066,593 - - - - - - - - - - - - - - - - - - - - - - - - - 4,106,563 4,106,563 4,104,101 4,104,101 189,306 8,118,559 8,307,865 - - - - 17,072 17,072 5,074,099 6,251,163 181,145 - 5,176,988 - - - - - - - - - 13,392,075 22,629,328 68,023,894 50,883,130 79,846,323 - 99,597,748 20,393,652 36,963,495 49,286,360 49,286,360 - 46,308,886 47,160,321 47,160,321 - - 11,904,066 81,445,056 5,074,099 5,074,099 - - - - - - - - - - 5,074,099 - 5,074,099 - 6,066,593 6,066,593 4,953,980 - - - - - - - - - - - - - - - 4,059,279 - - - - - - - - - - - - - - - - 4,953,980 - 6,066,593 6,066,593 6,066,593 6,066,593 - - - - - - - - 6,066,593 3,044,460 3,653,351 5,520,620 - - - 5,074,099 6,088,919 6,088,919 - - 10,148,198 10,148,198 - - 4,059,279 - 8,118,559 8,118,559 10,148,198 10,148,198 - - 4,059,279 6,088,919 8,118,559 8,118,559 10,148,198 10,148,198 10,148,198 10,148,198 7,205,221 7,205,221 10,148,198 10,148,198 12,177,838 12,177,838 20,296,397 20,296,397 445 Consolidated Financial StatementsTaxpayer ID No. (RUT) Company Country Financial Institution Country Currency Effective Interest Rate Nominal Interest Rate Secured 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 Three to four Four to five More than 5 Total Non- Less than 90 More than 90 One to two Two to three Three to four Four to five More than 5 Total Non- years years years years current days days years years years years years current Total Current 12-31-2015 12-31-2014 Taxpayer ID No. (RUT) Foreign Foreign Foreign Foreign Foreign Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Peru Peru Peru Peru Peru Emgesa S.A. E.S.P. Colombia Foreign Bonos A-10 Emgesa S.A. E.S.P. Colombia Foreign Bonos A102 Emgesa S.A. E.S.P. Colombia Foreign Bonos B09-09 Emgesa S.A. E.S.P. Colombia Foreign Bonos B10 Emgesa S.A. E.S.P. Colombia Foreign Bonos B-103 Emgesa S.A. E.S.P. Colombia Foreign Bonos B12 Emgesa S.A. E.S.P. Colombia Foreign Bonos B15 Emgesa S.A. E.S.P. Colombia Foreign Bonos B6-13 Emgesa S.A. E.S.P. Colombia Foreign Bonos B6-14 Emgesa S.A. E.S.P. Colombia Foreign Bonos exterior Emgesa S.A. E.S.P. Colombia Foreign Bonos quimbo Peru Peru Peru Peru Peru Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Emgesa S.A. E.S.P. Colombia Foreign Bonos Quimbo B10 Colombia Emgesa S.A. E.S.P. Colombia Foreign Bonos Quimbo B10-14 Colombia Emgesa S.A. E.S.P. Colombia Foreign Bonos Quimbo B12-13 Colombia Emgesa S.A. E.S.P. Colombia Foreign Bonos Quimbo B15 Colombia Emgesa S.A. E.S.P. Colombia Foreign Bonos Quimbo B16-14 Colombia Emgesa S.A. E.S.P. Colombia Foreign Bonos Quimbo B6-13 Colombia Emgesa S.A. E.S.P. Colombia Foreign Bonos Quimbo B6-14 Colombia Sol Sol Sol Sol Sol CP CP CP CP CP CP CP CP CP CP CP CP CP CP CP CP CP CP 6.34% 5.84% 6.34% 4.81% 6.13% 8.87% 8.87% 12.67% 12.54% 11.87% 12.88% 12.87% 10.91% 10.03% 10.17% 10.17% 10.13% 10.46% 11.71% 10.26% 10.81% 10.91% 10.03% Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign 91.081.000-6 Endesa Chile S.A. Chile 97.004.000-5 91.081.000-6 Endesa Chile S.A. Chile 97.004.000-5 Banco Santander 522 Serie-M Banco Santander -317 Serie-H Chile Chile 91.081.000-6 Endesa Chile S.A. Chile Foreign BNY Mellon - 144 - A U.S.A. 91.081.000-6 Endesa Chile S.A. Chile Foreign BNY Mellon - Primera Emisión S-2 U.S.A. U.F. 4.82% U.F. US$ US$ 7.17% 8.83% 7.40% 91.081.000-6 Endesa Chile S.A. Chile Foreign 91.081.000-6 Endesa Chile S.A. Chile Foreign 91.081.000-6 Endesa Chile S.A. Chile Foreign BNY Mellon - Primera Emisión S-3 BNY Mellon - Unica 24296 BNY Mellon - Primera Emisión S-1 U.S.A. US$ 8.26% U.S.A. US$ 4.32% U.S.A. US$ 7.96% 94.271.00-3 94.271.00-3 94.271.00-3 Enersis Américas S.A. Enersis Américas S.A. Enersis Américas S.A. Chile 97.004.000-5 Bonos UF 269 Chile U.F. 7.02% Chile Foreign Yankee bonos 2016 U.S.A. US$ 7.76% Chile Foreign Yankee bonos 2026 U.S.A. US$ 7.76% Taxpayer ID No. (RUT) Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Total Leasing Codensa Colombia Foreign Codensa Codensa Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. EE Piura EE Piura Edegel S.A.A. Colombia Colombia Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Chile Peru Emgesa S.A. E.S.P. Colombia Emgesa S.A. E.S.P. Colombia Emgesa S.A. E.S.P. Colombia Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Union Temporal Rentacol Colombia Mareauto Colombia SAS Colombia Banco Corpbanca Colombia Banco de Interbank Peru Banco Santander Peru Peru Banco de Crédito Peru Banco de Interbank Peru Banco Continental Banco Continental Banco Continental Banco Continental Peru Peru Peru Peru Banco Santander Peru Peru Banco de Crédito Banco de Crédito Peru Peru Chile Peru Banco Scotiabank Banco Corpbanca Colombia Equirent S.A. Colombia Mareauto Colombia SAS Colombia 91.081.000-6 Endesa Chile S.A. 87.509.100-K Abengoa Chile 6.25% 5.76% 6.25% 4.76% 6.03% 8.59% 8.59% 12.11% 11.99% 11.87% 12.30% 12.29% 10.49% 9.67% 10.17% 10.17% 9.77% 10.08% 11.23% 9.89% 10.39% 10.49% 9.67% 4.75% 6.20% 8.63% 7.33% 8.13% 4.25% 7.88% 5.75% 7.40% 6.60% No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No - - 39,656 60,884 39,656 60,884 304,643 139,221 406,991 - - 1,472,677 599,598 3,893,386 614,301 213,136 66,722 299,818 13,745,374 1,912,740 341,157 529,437 524,321 230,201 475,939 205,848 357,246 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 304,643 139,221 406,991 - - 1,472,677 599,598 3,893,386 614,301 213,136 66,722 299,818 13,745,374 1,912,740 341,157 529,437 524,321 230,201 475,939 205,848 357,246 - - - - - - - - - - 3,417,313 3,417,313 3,546,564 3,750,488 3,966,142 4,194,193 6,097,254 21,554,641 1,523,693 1,592,377 3,116,070 3,222,604 3,407,908 3,603,860 3,811,083 9,689,970 23,735,425 179,549,527 179,549,527 3,351 3,351 609,317 609,317 2,863 2,863 934,411 934,411 153,936,502 34,082,658 29,279,709 34,082,658 29,279,709 38,854,059 38,854,059 33,378,162 33,378,162 508,451 508,451 22,388,273 220,251,255 242,639,528 6,054,055 6,054,055 5,122,437 5,122,437 5,122,437 5,122,437 42,939,415 63,429,163 9,945,234 43,326,710 55,611,108 40,793,373 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 12,177,838 12,177,838 20,296,397 20,296,397 16,237,118 16,237,118 9,945,234 12,593,838 12,593,838 55,611,108 40,793,373 43,326,710 22,830,628 22,830,628 14,144,897 14,144,897 28,012,654 28,012,654 22,942,859 22,942,859 163,885,784 163,885,784 76,406,981 76,406,981 47,472,761 47,472,761 92,464,960 92,464,960 50,934,262 50,934,262 41,380,613 41,380,613 - - - - - - - - - - - - - - - 42,390,409 42,390,409 18,905,448 18,905,448 234,941,377 234,941,377 123,713,346 123,713,346 - 153,936,502 520,592 520,592 - - - - - - - - - - - - - - - - - - - - - - - - - - 4,361,016 121,350,000 125,711,016 1,310,741 830,186 1,310,741 830,186 2,177,558 2,177,558 4,098,882 4,098,882 10,210,232 38,005,507 48,781,185 35,783,303 20,837,209 14,586,046 12,502,325 12,502,325 16,669,767 16,669,767 291,845 135,607 20,837,209 10,210,232 14,586,046 38,627 59,304 20,026,666 20,026,666 12,407,680 12,407,680 11,047,324 24,573,172 11,047,324 24,573,172 - - 54,029,298 10,288,151 48,781,185 1,307,418 35,783,303 530,887 38,005,507 3,361,512 19,368,586 19,368,586 2,180,810 144,605,973 144,605,973 15,671,786 67,020,604 67,020,604 41,638,617 41,638,617 81,102,939 81,102,939 44,675,420 44,675,420 36,297,343 36,297,343 547,749 190,004 56,716 247,702 282,892 443,930 455,387 191,716 403,310 174,976 295,149 38,627 59,304 291,845 135,607 - 54,029,298 10,288,151 1,307,418 530,887 3,361,512 547,749 190,004 56,716 247,702 2,180,810 15,671,786 282,892 443,930 455,387 191,716 403,310 174,976 295,149 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 11,936 6,433 22,853 13,512 - - - - - - - 12,084 89,743 659,036 - - - - - - - - - - - - 15,599,736 20,200 23,718 19,819 19,648 3,650 3,217 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 266,565 18,369 36,365 12,084 89,743 659,036 40,019 43,366 6,867 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - CP CP CP Sol Sol Sol Sol Sol Sol Sol Sol Sol US$ Sol US$ US$ CP CP CP 10.80% 10.08% 7.27% 6.13% 5.79% 5.65% 5.29% 5.95% 6.00% 5.99% 5.98% 5.13% 5.80% 5.70% 6.50% 2.10% 10.80% 6.55% 10.08% 62,967 199,380 262,347 266,565 2,598 8,198 10,796 19,831 31,119 50,950 - - - 110,707 85,240 77,976 73,719 65,285 153,549 - - - - 178,308 239,624 225,872 199,365 472,612 - - - 110,707 263,548 317,600 299,591 264,650 626,161 1,408,471 4,225,412 5,633,883 474,864 1,424,592 1,899,456 - - - 2,484,674 7,399,875 9,884,549 4,579 5,424 795 14,234 16,795 18,813 22,219 2,372 3,167 43,995 16,223 29,007 102,834 83,365 73,417 68,973 58,734 19,417 314,402 236,019 218,216 206,240 184,498 43,995 16,223 48,424 417,236 319,384 291,633 275,213 243,232 107,597 256,430 308,894 291,802 258,191 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 107,597 256,430 308,894 291,802 258,191 - - - - - - - - - - - 5,633,883 5,633,883 5,633,883 14,432,002 31,333,651 1,640,658 4,921,975 6,562,633 6,562,631 6,562,633 6,562,633 6,562,633 16,811,128 43,061,658 1,899,456 1,899,456 1,899,456 4,865,731 10,564,099 15,599,736 2,122,504 6,312,384 8,434,888 8,416,512 13,307,187 21,723,699 1,470,563 1,470,563 2,427,000 1,566,150 1,667,950 1,776,367 10,215,436 17,652,903 5,030,679 14,637,758 19,668,437 24,242,860 7,595,968 7,533,339 19,297,733 - 58,669,900 4,239,710 13,883,714 18,123,424 18,629,057 21,435,970 8,230,583 8,339,000 27,026,564 83,661,174 Totales Bonos No Garantizados 73,032,549 283,189,038 356,221,587 237,428,066 197,181,217 176,261,853 92,247,184 688,597,087 1,391,715,407 116,915,693 192,009,426 308,925,119 309,011,927 276,500,977 230,670,044 207,213,267 1,542,021,778 2,565,417,993 Detail of finance lease obligations Company Country Tax ID Number Financial Institution Financial Institution Country Currency Nominal Interest Rate Less than 90 days Current ThCh$ More than 90 days Total Current One to two years Two to three Three to four Four to five More than 5 Total Non- Less than 90 More than 90 One to two Two to three Three to four Four to five More than 5 Total Non- years years years years current days days years years years years years current Total Current 12-31-2015 Non-current ThCh$ Current ThCh$ Non-current ThCh$ 12-31-2014 In Appendix 5.c), are shown the estimated future cash flows (undiscounted) that the Group will have to disburse to settle the finance lease obligations detailed above. 446 2015 Annual Report Enersis Company Country Financial Institution Country Currency Effective Interest Rate Nominal Interest Rate Secured Current ThCh$ Non-current ThCh$ Current ThCh$ Non-current ThCh$ Less than 90 More than 90 Total Current days One to two years Two to three years Three to four years Four to five years More than 5 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 5 years Total Non- current 12-31-2015 12-31-2014 - - - - - - - - - - - - - - - - - - - - - - - - - - - 9,945,234 - - - - - 43,326,710 - - - - - - - - - - - - - - - - - - - - - 55,611,108 - - - - - - - - - - - - - - - - - 12,177,838 12,177,838 20,296,397 - 20,296,397 - - - - - - 40,793,373 - - - 16,237,118 16,237,118 - - - - - - - 9,945,234 - - - 55,611,108 40,793,373 43,326,710 22,830,628 22,830,628 14,144,897 14,144,897 12,593,838 - 12,593,838 - - - - - - - - 28,012,654 28,012,654 22,942,859 22,942,859 163,885,784 163,885,784 76,406,981 76,406,981 47,472,761 47,472,761 92,464,960 92,464,960 50,934,262 50,934,262 41,380,613 41,380,613 38,854,059 - 38,854,059 - 33,378,162 33,378,162 22,388,273 220,251,255 242,639,528 - - - 10,210,232 - - - - - 38,005,507 - - - - - - - - - - - - - - - - - - - - - - - - - - - 48,781,185 - - - - - - - - - - - - - - - - - - - - - - - 20,837,209 - - 14,586,046 - - - 35,783,303 - - - 11,047,324 - - - - - - - - 34,082,658 - - - - - - - - - - - - - - - - - - - - - 24,573,172 - - - - - - - - 29,279,709 - - - - - - - 12,502,325 12,502,325 - 20,837,209 16,669,767 16,669,767 - - 38,627 59,304 10,210,232 14,586,046 291,845 135,607 - - - 54,029,298 10,288,151 48,781,185 1,307,418 35,783,303 530,887 38,005,507 3,361,512 - - - - - - - 20,026,666 20,026,666 12,407,680 12,407,680 - - 11,047,324 24,573,172 547,749 190,004 56,716 247,702 19,368,586 19,368,586 2,180,810 144,605,973 144,605,973 15,671,786 38,627 59,304 291,845 135,607 - 54,029,298 10,288,151 1,307,418 530,887 3,361,512 547,749 190,004 56,716 247,702 2,180,810 15,671,786 282,892 443,930 455,387 191,716 403,310 174,976 295,149 - - - - - - - - - - - - - - - - - - - - - 508,451 508,451 282,892 443,930 455,387 191,716 403,310 174,976 295,149 - - 67,020,604 67,020,604 41,638,617 41,638,617 81,102,939 81,102,939 44,675,420 44,675,420 36,297,343 36,297,343 - - - - - - - - - 34,082,658 29,279,709 - - - - - - - Taxpayer ID No. (RUT) Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Taxpayer ID No. (RUT) Foreign Foreign Foreign Foreign Foreign Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Peru Peru Peru Peru Peru Emgesa S.A. E.S.P. Colombia Foreign Bonos A-10 Emgesa S.A. E.S.P. Colombia Foreign Bonos A102 Emgesa S.A. E.S.P. Colombia Foreign Bonos B09-09 Emgesa S.A. E.S.P. Colombia Foreign Bonos B10 Emgesa S.A. E.S.P. Colombia Foreign Bonos B-103 Emgesa S.A. E.S.P. Colombia Foreign Bonos B12 Emgesa S.A. E.S.P. Colombia Foreign Bonos B15 Emgesa S.A. E.S.P. Colombia Foreign Bonos B6-13 Emgesa S.A. E.S.P. Colombia Foreign Bonos B6-14 Emgesa S.A. E.S.P. Colombia Foreign Bonos exterior Emgesa S.A. E.S.P. Colombia Foreign Bonos quimbo Peru Peru Peru Peru Peru Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Emgesa S.A. E.S.P. Colombia Foreign Bonos Quimbo B10 Colombia Emgesa S.A. E.S.P. Colombia Foreign Bonos Quimbo B10-14 Colombia Emgesa S.A. E.S.P. Colombia Foreign Bonos Quimbo B12-13 Colombia Emgesa S.A. E.S.P. Colombia Foreign Bonos Quimbo B15 Colombia Emgesa S.A. E.S.P. Colombia Foreign Bonos Quimbo B16-14 Colombia Emgesa S.A. E.S.P. Colombia Foreign Bonos Quimbo B6-13 Colombia Emgesa S.A. E.S.P. Colombia Foreign Bonos Quimbo B6-14 Colombia 91.081.000-6 Endesa Chile S.A. Chile 97.004.000-5 U.F. 4.82% 91.081.000-6 Endesa Chile S.A. Chile 97.004.000-5 91.081.000-6 Endesa Chile S.A. Chile Foreign BNY Mellon - 144 - A U.S.A. 91.081.000-6 Endesa Chile S.A. Chile Foreign BNY Mellon - Primera Emisión S-2 U.S.A. Banco Santander 522 Serie-M Banco Santander -317 Serie-H Chile Chile 91.081.000-6 Endesa Chile S.A. Chile Foreign U.S.A. US$ 8.26% 91.081.000-6 Endesa Chile S.A. Chile Foreign U.S.A. US$ 4.32% 91.081.000-6 Endesa Chile S.A. Chile Foreign U.S.A. US$ 7.96% BNY Mellon - Primera Emisión S-3 BNY Mellon - Unica 24296 BNY Mellon - Primera Emisión S-1 94.271.00-3 Enersis Américas 94.271.00-3 Enersis Américas 94.271.00-3 Enersis Américas S.A. S.A. S.A. Sol Sol Sol Sol Sol CP CP CP CP CP CP CP CP CP CP CP CP CP CP CP CP CP CP U.F. US$ US$ 6.34% 5.84% 6.34% 4.81% 6.13% 8.87% 8.87% 12.67% 12.54% 11.87% 12.88% 12.87% 10.91% 10.03% 10.17% 10.17% 10.13% 10.46% 11.71% 10.26% 10.81% 10.91% 10.03% 7.17% 8.83% 7.40% 6.25% 5.76% 6.25% 4.76% 6.03% 8.59% 8.59% 12.11% 11.99% 11.87% 12.30% 12.29% 10.49% 9.67% 10.17% 10.17% 9.77% 10.08% 11.23% 9.89% 10.39% 10.49% 9.67% 4.75% 6.20% 8.63% 7.33% 8.13% 4.25% 7.88% 5.75% 7.40% 6.60% No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No 39,656 60,884 304,643 139,221 406,991 1,472,677 599,598 3,893,386 614,301 213,136 66,722 299,818 13,745,374 1,912,740 341,157 529,437 524,321 230,201 475,939 205,848 357,246 days 39,656 60,884 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 304,643 139,221 406,991 1,472,677 599,598 3,893,386 614,301 213,136 66,722 299,818 13,745,374 1,912,740 341,157 529,437 524,321 230,201 475,939 205,848 357,246 - - - - - - - - - - - - - - Detail of finance lease obligations Taxpayer ID No. (RUT) Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Codensa Codensa Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. EE Piura EE Piura Edegel S.A.A. Colombia Colombia Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Chile Peru Emgesa S.A. E.S.P. Colombia Emgesa S.A. E.S.P. Colombia Emgesa S.A. E.S.P. Colombia Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Union Temporal Rentacol Colombia Mareauto Colombia SAS Colombia Banco Corpbanca Colombia Banco de Interbank Peru Banco Santander Peru Peru Banco de Crédito Peru Banco de Interbank Peru Banco Continental Banco Continental Banco Continental Banco Continental Banco de Crédito Banco de Crédito Banco Santander Peru Peru Peru Peru Peru Peru Peru Peru Chile Peru Banco Scotiabank Banco Corpbanca Colombia Equirent S.A. Colombia Mareauto Colombia SAS Colombia CP CP CP Sol Sol Sol Sol Sol Sol Sol Sol Sol US$ Sol US$ US$ CP CP CP 10.80% 10.08% 7.27% 6.13% 5.79% 5.65% 5.29% 5.95% 6.00% 5.99% 5.98% 5.13% 5.80% 5.70% 6.50% 2.10% 10.80% 6.55% 10.08% 91.081.000-6 Endesa Chile S.A. 87.509.100-K Abengoa Chile 110,707 85,240 77,976 73,719 65,285 153,549 - - - - 178,308 239,624 225,872 199,365 472,612 110,707 263,548 317,600 299,591 264,650 626,161 - - - - 1,408,471 4,225,412 5,633,883 474,864 1,424,592 1,899,456 2,484,674 7,399,875 9,884,549 4,579 5,424 795 14,234 16,795 18,813 22,219 2,372 3,167 In Appendix 5.c), are shown the estimated future cash flows (undiscounted) that the Group will have to disburse to settle the finance lease obligations detailed above. - - - - - - - - - - - - - - Chile 97.004.000-5 Bonos UF 269 Chile U.F. 7.02% 3,417,313 3,417,313 3,546,564 3,750,488 3,966,142 4,194,193 6,097,254 21,554,641 1,523,693 1,592,377 3,116,070 3,222,604 3,407,908 3,603,860 3,811,083 9,689,970 23,735,425 Chile Foreign Yankee bonos 2016 U.S.A. US$ 7.76% Chile Foreign Yankee bonos 2026 U.S.A. US$ 7.76% 179,549,527 179,549,527 3,351 3,351 - - - - - - - - - - 609,317 609,317 - - 934,411 934,411 153,936,502 2,863 2,863 - - - - - - - - 153,936,502 520,592 520,592 Totales Bonos No Garantizados 73,032,549 283,189,038 356,221,587 237,428,066 197,181,217 176,261,853 92,247,184 688,597,087 1,391,715,407 116,915,693 192,009,426 308,925,119 309,011,927 276,500,977 230,670,044 207,213,267 1,542,021,778 2,565,417,993 Company Country Financial Institution Country Currency Tax ID Number Financial Institution Nominal Interest Rate Current ThCh$ Less than 90 More than 90 days days Total Current 12-31-2015 One to two years Non-current ThCh$ Two to three years Three to four years Four to five years More than 5 years Total Non- current Less than 90 days Current ThCh$ More than 90 days 12-31-2014 Non-current ThCh$ Total Current One to two years Two to three years Three to four years Four to five years More than 5 years Total Non- current Codensa Colombia Foreign 62,967 199,380 262,347 266,565 - 2,598 8,198 10,796 19,831 31,119 50,950 11,936 6,433 22,853 13,512 - - - - - - 12,084 89,743 659,036 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 5,633,883 5,633,883 5,633,883 14,432,002 1,899,456 1,899,456 1,899,456 4,865,731 - 15,599,736 20,200 23,718 - - 19,819 19,648 3,650 3,217 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 266,565 18,369 36,365 - - - - - - 12,084 89,743 659,036 - - - 43,995 16,223 29,007 102,834 83,365 73,417 68,973 58,734 - - - - - - 19,417 314,402 236,019 218,216 206,240 184,498 - - - - 43,995 16,223 48,424 417,236 319,384 291,633 275,213 243,232 - - - - - - - 107,597 256,430 308,894 291,802 258,191 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 107,597 256,430 308,894 291,802 258,191 - 31,333,651 1,640,658 4,921,975 6,562,633 6,562,631 6,562,633 6,562,633 6,562,633 16,811,128 43,061,658 10,564,099 - - - - - - - - - - - 1,470,563 1,470,563 2,427,000 1,566,150 1,667,950 1,776,367 10,215,436 17,652,903 15,599,736 2,122,504 6,312,384 8,434,888 8,416,512 13,307,187 40,019 43,366 6,867 - - - - - - - - - - - - - - - - - - - - - - - - - - - 21,723,699 - - - Total Leasing 5,030,679 14,637,758 19,668,437 24,242,860 7,595,968 7,533,339 19,297,733 - 58,669,900 4,239,710 13,883,714 18,123,424 18,629,057 21,435,970 8,230,583 8,339,000 27,026,564 83,661,174 447 6,054,055 6,054,055 5,122,437 5,122,437 5,122,437 5,122,437 42,939,415 63,429,163 4,361,016 121,350,000 125,711,016 1,310,741 830,186 - - 1,310,741 830,186 - 2,177,558 2,177,558 4,098,882 - 4,098,882 - - - - - - - - - - - - - - - - - - - - - - 42,390,409 42,390,409 18,905,448 18,905,448 234,941,377 234,941,377 123,713,346 123,713,346 Consolidated Financial Statements Detail of other obligations Taxpayer ID No. (RUT) Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Totales Otros Company Country Tax ID Number Financial Institution Financial Institution Country Currency Nominal Interest Rate Less than 90 days Current ThCh$ More than 90 days Total Current One to two years Two to three Three to four Four to five More than 5 Total Non- Less than 90 More than 90 One to two Two to three Three to four Four to five More than 5 Total Non- years years years years current days days years years years years years current Total Current 12-31-2015 Non-current ThCh$ Current ThCh$ Non-current ThCh$ 12-31-2014 Ampla Energía S.A. Brazil Ampla Energía S.A. Brazil Cien S.A. Coelce S.A. Coelce S.A. Coelce S.A. Coelce S.A. Coelce S.A. Coelce S.A. Brazil Brazil Brazil Brazil Brazil Brazil Brazil Central Costanera S.A. Argentina Central Costanera S.A. Argentina Hidroinvest S.A. Argentina Endesa Argentina S.A. Argentina H. El Chocón S.A. Argentina Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Eletrobras Bndes Bndes Brazil Brazil Brazil Banco do Nordeste Brazil Eletrobras Banco do Brasil BNDES Banco Itau Banco do Brasil Mitsubishi (deuda garantizada) Otros Otros Otros Otros Brazil Brazil Brazil Brazil Brazil Argentina Argentina Argentina Argentina Argentina Real Real Real Real Real US$ Real Real Real US$ Ar$ US$ Ar$ Ar$ 6.57% 9.17% 8.33% 7.85% 6.10% 52.56% 10.43% 13.27% 12.63% 0.25% 17.29% 2.53% 32.75% 23.59% - - - - 320,904 960,799 1,281,703 1,250,075 1,161,274 845,534 363,042 544,563 4,164,488 4,668,542 16,155,634 20,824,176 22,376,436 18,904,213 15,431,989 11,215,453 8,186,564 76,114,655 6,342,861 17,834,053 24,176,914 23,778,737 23,778,737 19,359,315 14,939,893 15,331,146 97,187,828 215,214 659,135 874,349 951,507 2,896,151 3,847,658 559,718 1,259,783 1,819,501 - 17,520 17,520 1,350,117 5,050,186 6,400,303 - - - - - - - - - 2,153,867 2,153,867 - - 391,530 391,530 23,515 16,912,466 - - 23,515 16,912,466 24,681,079 28,583,806 53,264,885 - - - - - - - - - - - - - - - 860,857 951,507 - - - - - - - - - - - - - - - - - - - - - - - - - - 860,857 860,857 430,428 3,012,999 538,196 538,196 538,196 538,196 538,196 538,196 269,098 2,421,882 3,806,030 3,806,030 8,563,567 1,284,981 3,646,330 4,931,311 4,861,773 4,861,773 4,861,773 1,215,443 15,800,762 1,489,541 1,383,305 1,269,785 1,081,597 1,488,913 6,713,141 588,874 1,752,419 2,341,293 2,278,359 2,091,086 1,955,381 1,810,372 3,770,223 11,905,421 7,193,099 7,193,099 7,193,099 4,862,156 3,639,085 30,080,538 1,845,632 5,157,750 7,003,382 6,877,000 6,877,000 6,877,000 6,877,000 6,268,860 33,776,860 1,942,995 1,942,995 14,875 14,875 1,688,327 1,688,327 - - - - - - - - - - - - - - 3,099,889 3,099,889 331,928 331,928 32,719 32,719 1,160,712 1,160,712 1,074,175 1,074,175 17,169,326 17,169,326 17,169,326 17,169,326 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 68,677,304 26,620,802 - - - - 2,144,288 2,144,288 2,144,288 2,144,288 24,342,682 32,919,834 2,391,399 2,391,399 7,362,677 7,362,678 7,362,678 4,532,769 4,636,665 4,636,665 513,496 513,496 9,409,124 9,409,124 42,506,916 34,291,792 27,851,525 19,733,922 39,600,239 163,984,394 10,944,342 37,947,650 48,891,992 73,525,267 63,840,070 58,969,203 47,446,041 27,872,217 271,652,798 In Appendix 5.d), are shown the estimated future cash flows (undiscounted) that the Group will have to disburse to settle these Other Obligations. 20.4 Hedged debt The debt denominated in U.S. dollar for ThCh$ 933,447,012 held by Enersis Américas as of December 31, 2015, is related to future cash flow hedges for the Group’s U.S. dollar-linked operating income, of which ThCh$ 119,366,828 corresponds to continuing operations (ThCh$ 761,130,114 as of December 31, 2014) (See Note 3.n). The following table details changes in “Reserve for cash flow hedges” for the years ended December 31, 2015, 2014 and 2013 due to exchange differences from this debt: 12-31-2015 12-31-2014 12-31-2013 Balance in hedging reserves (hedging income) at the beginning of the year, net (38,783,599) 2,415,439 37,372,801 Foreign currency exchange differences recorded in equity, net (44,992,798) (31,401,584) (24,792,601) Recognition of foreign currency exchange differences revenue, net 3,172,291 (10,086,797) (10,087,806) Foreign currency translation differences (81,479) 289,343 (76,955) Transfer to assets held for distribution to owners 74,953,393 - - Balance in hedging reserves (hedging income) at the end of the year, net (5,732,192) (38,783,599) 2,415,439 20.5 Other information As of December 31, 2015, the Enersis Américas Group has long-term lines of credit available for use amounting to ThCh$ 34,332,376 (ThCh$ 173,337,192 as of December 31, 2014) 448 2015 Annual Report Enersis Detail of other obligations Taxpayer ID No. (RUT) Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Company Country Financial Institution Country Currency Tax ID Number Financial Institution Ampla Energía S.A. Brazil Ampla Energía S.A. Brazil Cien S.A. Coelce S.A. Coelce S.A. Coelce S.A. Coelce S.A. Coelce S.A. Coelce S.A. Brazil Brazil Brazil Brazil Brazil Brazil Brazil Central Costanera S.A. Argentina Central Costanera S.A. Argentina Hidroinvest S.A. Argentina Endesa Argentina S.A. Argentina H. El Chocón S.A. Argentina Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Banco do Nordeste Brazil Eletrobras Bndes Bndes Eletrobras Banco do Brasil BNDES Banco Itau Banco do Brasil Mitsubishi (deuda garantizada) Otros Otros Otros Otros Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Argentina Argentina Argentina Argentina Argentina Real Real Real Real Real US$ Real Real Real US$ Ar$ US$ Ar$ Ar$ 6.57% 9.17% 8.33% 7.85% 6.10% 52.56% 10.43% 13.27% 12.63% 0.25% 17.29% 2.53% 32.75% 23.59% - - - - - - - - - - - - - - - - - 20.4 Hedged debt Nominal Interest Rate Current ThCh$ Less than 90 More than 90 days days Total Current 12-31-2015 One to two years Non-current ThCh$ Two to three years Three to four years Four to five years More than 5 years Total Non- current Less than 90 days Current ThCh$ More than 90 days 12-31-2014 Non-current ThCh$ Total Current One to two years Two to three years Three to four years Four to five years More than 5 years Total Non- current 4,668,542 16,155,634 20,824,176 22,376,436 18,904,213 15,431,989 11,215,453 8,186,564 76,114,655 6,342,861 17,834,053 24,176,914 23,778,737 23,778,737 19,359,315 14,939,893 15,331,146 97,187,828 215,214 659,135 874,349 951,507 2,896,151 3,847,658 559,718 1,259,783 1,819,501 17,520 17,520 860,857 860,857 3,806,030 3,806,030 860,857 951,507 430,428 - - - 3,012,999 - 538,196 538,196 538,196 538,196 538,196 538,196 269,098 2,421,882 8,563,567 1,284,981 3,646,330 4,931,311 4,861,773 4,861,773 4,861,773 1,215,443 - 15,800,762 1,489,541 1,383,305 1,269,785 1,081,597 1,488,913 6,713,141 588,874 1,752,419 2,341,293 2,278,359 2,091,086 1,955,381 1,810,372 3,770,223 11,905,421 - - - - 1,942,995 1,942,995 14,875 - 14,875 - - - - 1,688,327 1,688,327 1,350,117 5,050,186 6,400,303 7,193,099 7,193,099 7,193,099 4,862,156 3,639,085 30,080,538 1,845,632 5,157,750 7,003,382 6,877,000 6,877,000 6,877,000 6,877,000 6,268,860 33,776,860 - - - - - - 320,904 960,799 1,281,703 1,250,075 1,161,274 845,534 363,042 544,563 4,164,488 2,153,867 2,153,867 2,144,288 2,144,288 2,144,288 2,144,288 24,342,682 32,919,834 - - - - - - - - - - - - 1,160,712 1,160,712 - - - - 1,074,175 1,074,175 17,169,326 17,169,326 17,169,326 17,169,326 2,391,399 2,391,399 7,362,677 7,362,678 7,362,678 4,532,769 23,515 16,912,466 391,530 391,530 23,515 16,912,466 - - - 4,636,665 - - - - - - - - - - - - - - - - - - - 3,099,889 3,099,889 331,928 331,928 32,719 - - - - - - - - - - - - - - - - - 4,636,665 513,496 513,496 9,409,124 - - - - - 32,719 - - - - - - - - 68,677,304 26,620,802 - - - 9,409,124 Totales Otros 24,681,079 28,583,806 53,264,885 42,506,916 34,291,792 27,851,525 19,733,922 39,600,239 163,984,394 10,944,342 37,947,650 48,891,992 73,525,267 63,840,070 58,969,203 47,446,041 27,872,217 271,652,798 In Appendix 5.d), are shown the estimated future cash flows (undiscounted) that the Group will have to disburse to settle these Other Obligations. 21. Risk Management Policy The 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 Group’s risk management policy include the following: - Compliance with proper corporate governance standards. - Strict compliance with all of 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 Américas policies, standards, and procedures. 449 Consolidated Financial Statements 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 58% as of December 31, 2015. Depending on the Group’s estimates and 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 to a fixed rate. The financial debt structure of the 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: Fixed interest rate Floating interest rate Total 12-31-2015 12-31-2014 % 58% 42% 100% % 72% 28% 100% 21.2 Exchange rate risk Exchange rate risks involve basically the following transactions: - Debt taken on by the Group’s companies that is denominated in a currency other than the currency 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 Group companies directly linked to changes in currencies other than the currency of its cash flows. - Cash flows from foreign subsidiaries to the Chilean parent company which are exposed to exchange rate fluctuations. In order to mitigate foreign currency risk, the 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 pursue to refinance debt in the functional currency of each of the Group’s companies. 450 2015 Annual Report Enersis 21.3 Commodities risk The 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 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 Company is constantly evaluating the use of hedging to minimize the impacts that these price fluctuations have on its results. As of December 31, 2015 and 2014, there are no commodity derivatives transactions. 21.4 Liquidity risk The 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 19, 21, and Appendix 5). As of December 31, 2015, the Enersis Américas’ Group has cash and cash equivalents for ThCh$ 1,185,163,344 and unconditionally available lines of long-term credit for ThCh$ 34,332,376. As of December 31, 2014, the Group had cash and cash equivalents for ThCh$ 1,571,759,564 and unconditionally available lines of long-term credit for ThCh$173,337,192. 451 Consolidated Financial Statements21.5 Credit risk The Enersis Américas Group closely monitors its credit risk. Trade receivables: The credit risk for receivables from the 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 the electricity generating and distribution lines of business. In our electricity generating business, some countries’ regulations allow to suspend the energy service to customers with outstanding payments, and most contracts have termination clauses for payment default. The Company 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 to 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. Investments may be backed with treasury bonds from the countries in which the company operates and/or with commercial papers issued by the highest rated banks; the latter are preferable 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. 452 2015 Annual Report Enersis 21.6 Risk measurement The Enersis Américas Group measures the Value at Risk (VaR) of its debt positions and financial derivatives in order to monitor the risk assumed by the Company, thereby reducing volatility in the income statement. The portfolio of positions included for purposes of calculating the present Value at Risk include: - Financial debt - Hedge derivatives for debt The VaR determined represents the potential variation in value of the portfolio of positions described above in a 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, with respect to the U.S. dollar, including: - U.S. dollar Libor interest rate. - The different currencies with which our companies operate and the customary local indices used in the banking industry. - 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, using Bootstrapping simulations. The quarter 95%-confidence VaR number is calculated as the 5% percentile most adverse of the quarterly possible fluctuations. Taking into consideration the assumptions previously described, the quarter VaR of the previously discussed positions was ThCh$ 84,347,418. This value represents 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. 453 Consolidated Financial Statements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, 2015 and 2014 is as follows: 12-31-2015 Financial assets at fair value through profit or loss ThCh$ Held-to- maturity investments ThCh$ Loans and receivables ThCh$ Available-for- sale financial assets ThCh$ - 35,467,539 35,467,539 - 27,195,496 27,195,496 - 1,045,820,479 1,045,820,479 - - - Financial assets held for trading ThCh$ 4,427,286 - 4,427,286 Financial derivatives forhedging ThCh$ 1,172,125 - 1,172,125 - - - - - - - - - - 39,673 39,673 - - 364,516,870 364,516,870 616,296 - 487,893,679 488,509,975 - 978,556 - 978,556 Derivative instruments Other financial assets Total Current Equity instruments Derivative instruments Other financial assets Total Non-current Total 4,427,286 35,467,539 27,235,169 1,410,337,349 488,509,975 2,150,681 Financial assets held for trading ThCh$ 7,061,715 - 7,061,715 - 22,002 - 22,002 Derivative instruments Other financial assets Total Current Equity instruments Derivative instruments Other financial assets Total Non-current 12-31-2014 Financial assets at fair value through profit or loss ThCh$ Held-to- maturity investments ThCh$ Loans and receivables ThCh$ Available-for- sale financial assets ThCh$ - 52,677,337 52,677,337 - 38,301,763 38,301,763 - 1,700,128,243 1,700,128,243 - - - Financial derivatives forhedging ThCh$ 1,414,588 - 1,414,588 - - - - - - 26,340,396 26,340,396 - - 292,128,280 292,128,280 4,306,227 - 492,923,605 497,229,832 - 7,229,290 - 7,229,290 Total 7,083,717 52,677,337 64,642,159 1,992,256,523 497,229,832 8,643,878 454 2015 Annual Report Enersis                                                                                           b) The detail of financial liabilities, classified by type and category, as of December 31, 2015 and 2014 is as follows: Interest-bearing loans Derivative instruments Other financial liabilities Total Current Interest-bearing loans Derivative instruments Other financial liabilities Total Non-current 12-31-2015 Financial liabilities held for trading ThCh$ Loans and payables ThCh$ Financial derivatives for hedging ThCh$ - 1,052,026 - 1,052,026 - - - - 617,276,453 - 1,447,306,354 2,064,582,807 1,846,995,721 - 244,079,004 2,091,074,725 - 69,545,029 - 69,545,029 - 300,871 - 300,871 Total 1,052,026 4,155,657,532 69,845,900 12-31-2014 Financial liabilities held for trading ThCh$ Loans and payables ThCh$ Financial derivatives for hedging ThCh$ - 2,544,239 - 2,544,239 - 6,286,982 - 6,286,982 418,266,381 - 2,432,557,572 2,850,823,953 3,167,948,954 - 159,385,521 3,327,334,475 - 995,059 - 995,059 - 114,861,592 - 114,861,592 Interest-bearing loans Derivative instruments Other financial liabilities Total Current Interest-bearing loans Derivative instruments Other financial liabilities Total Non-current Total 8,831,221 6,178,158,428 115,856,651 455 Consolidated Financial Statements                      22.2 Derivative instruments The risk management policy of the Group uses primarily interest rate and foreign exchange rate derivatives to hedge its exposure to interest rate and foreign currency risks. The Company classifies its hedges 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 hedging instruments are recognized at fair value through profit or loss (financial assets held for trading). 456 2015 Annual Report Enersis a) Assets and liabilities for hedge derivative instruments As of December 31, 2015 and 2014, financial derivative qualifying as hedging instruments resulted in recognition of the following assets and liabilities in the statement of financial position: 12-31-2015 12-31-2014 Assets Liabilities Assets Liabilities Current ThCh$ Non- current ThCh$ Current ThCh$ Non- current ThCh$ Current ThCh$ Non- current ThCh$ Current ThCh$ Non- current ThCh$ Interest rate hedge: Cash flow hedge Exchange rate hedge: Cash flow hedge TOTAL 908,115 908,115 978,556 978,556 11,177 11,177 300,871 300,871 193,246 193,246 3,533,655 3,533,655 14,637 14,637 582,788 582,788 264,010 264,010 1,172,125 - 69,533,852 - 69,533,852 978,556 69,545,029 - - 300,871 1,221,342 1,221,342 1,414,588 3,695,636 3,695,636 7,229,291 980,421 114,278,805 980,421 114,278,805 995,058 114,861,593 General information on hedge derivative instruments Hedging derivative instruments and their corresponding hedged instruments are shown in the following table: Detail of Hedge Instruments SWAP SWAP Description of Hedge Instrument Interest rate Exchange rate Description of Hedged Instrument Bank loans Unsecured obligations (bonds) Fair Value of Hedged Instruments 12/31/2015 1,574,623 Fair Value of Hedged Instruments 12/31/2014 3,129,476 (69,269,842) (110,342,248) As of December 31, 2015 and 2013, the Group has not recognized significant gains or losses for ineffective cash flow hedges. For fair value hedges the gain or losses recognized on the hedging instrument and on the underlying hedged item is detailed in the following table: Hedging instrument Hedged item TOTAL 12-31-2015 12-31-2014 12-31-2013 Gains ThCh$ Losses ThCh$ - - - - - - Gains ThCh$ 610,861 - 610,861 Losses ThCh$ - 1,090,341 1,090,341 Gains ThCh$ 697,443 - 697,443 Losses ThCh$ - 1,556,853 1,556,853 b) Financial derivative instruments assets and liabilities at fair value through profit or loss As of December 31, 2015 and 2014, financial derivative transactions recognized at fair value through profit or loss, resulted in the recognition of the following assets and liabilities in the statement of financial position: 12-31-2015 12-31-2014 Assets Liabilites Current ThCh$ Current ThCh$ Assets Non- current ThCh$ Liabilites Non- current ThCh$ Assets Liabilites Current ThCh$ Current ThCh$ Assets Non- current ThCh$ Liabilites Non- current ThCh$ Non-hedging derivative instrument 4,427,286 1,052,026 - - 7,061,715 2,544,239 22,002 6,286,982 457 Consolidated Financial Statements    c) Other information on derivatives: The following table sets forth the fair value of hedging and non-hedging derivatives entered into by the Group as well as the remaining contractual maturities as of December 31, 2015 and 2014: Financial derivatives Interest rate hedge: Cash flow hedge Exchange rate hedge: Cash flow hedge Derivatives not designated for hedge accounting TOTAL Financial Derivatives Interest rate hedge: Cash flow hedge Exchange rate hedge: Cash flow hedge Derivatives not designated for hedge accounting TOTAL 12-31-2015 Notional Amount Fair value ThCh$ Less than 1 year ThCh$ 1-2 Years 2-3 Years 3-4 Years 4-5 Years Total ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 1,574,623 38,204,658 22,314,853 1,574,623 38,204,658 22,314,853 (69,269,842) 308,412,252 (69,269,842) 308,412,252 3,375,260 44,663,462 - - - (64,319,959) 391,280,372 22,314,853 - - - - - - - - - - - - - - - - - - 60,519,511 60,519,511 308,412,252 308,412,252 44,663,462 413,595,225 12-31-2014 Notional Amount Fair value ThCh$ Less than 1 year ThCh$ 1-2 Years 2-3 Years 3-4 Years 4-5 Years Total ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 3,129,476 19,580,330 46,306,386 34,138,973 3,129,476 19,580,330 46,306,386 34,138,973 (110,342,248) 7,029,775 233,262,249 (110,342,248) 7,029,775 233,262,249 - - - - - - - - 100,025,689 100,025,689 260,451,370 500,743,394 260,451,370 500,743,394 (1,747,504) 133,409,820 46,908,791 45,078,924 19,426,499 - 244,824,034 (108,960,276) 160,019,925 326,477,426 79,217,897 19,426,499 260,451,370 845,593,117 The hedging and non-hedging derivatives contractual maturities do not represent the 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. 458 2015 Annual Report Enersis 22.3 Fair value hierarchies Financial instruments recognized at fair value in the consolidated statement of financial position are classified based on the hierarchies described in Note 3.h. The following table presents financial assets and liabilities measured at fair value as of December 31, 2015 and 2014: Financial Assets Financial derivatives designated as cash flow hedge Financial derivatives not designated for hedge accounting Financial assets at fair value through profit or loss Available-for-sale financial assets, non- current Total Financial Liabilities Financial derivatives designated as cash flow hedge Financial derivatives not designated for hedge accounting Total Financial Assets Financial derivatives designated as cash flow hedge Financial derivatives not designated for hedge accounting Financial assets at fair value through profit or loss Available-for-sale financial assets, non- current Total Financial Liabilities Financial derivatives designated as cash flow hedge Financial derivatives not designated for hedge accounting Total Financial Instruments Measured at Fair Value 12-31-2015 ThCh$ Fair Value Measured at End of Reporting Period Using: Level 1 ThCh$ Level 2 ThCh$ Level 3 ThCh$ 2,150,681 4,427,286 - - 2,150,681 4,427,286 35,467,539 35,467,539 - 487,893,679 529,939,185 69,845,900 1,052,026 70,897,926 - 487,893,679 35,467,539 494,471,646 - - - 69,845,900 1,052,026 70,897,926 - - - - - - - - Financial Instruments Measured at Fair Value 12-31-2014 ThCh$ Fair Value Measured at End of Reporting Period Using: Level 1 ThCh$ Level 2 ThCh$ Level 3 ThCh$ 8,643,878 7,083,717 - - 8,643,878 7,083,717 52,677,337 52,677,337 - 492,954,649 561,359,581 115,856,651 8,831,221 124,687,872 31,044 492,923,605 52,708,381 508,651,200 - - - 115,856,651 8,831,221 124,687,872 - - - - - - - - 459 Consolidated Financial Statements22.3.1 Financial instruments whose fair value measurement is classified as Level 3: The Company entered into certain transaction that resulted in the recognition of a financial liability measured at fair value. 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 power 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. The fair value of the financial liability mentioned above was nil as of December 31, 2015, 2014 and 2013. 460 2015 Annual Report Enersis 23. Trade and Other Current Payables The breakdown of Trade and Other Payables as of December 31, 2015 and 2014 is as follows: Trade and other payables Trade payables Other payables Total Current No Current 12-31-2015 ThCh$ 459,144,350 993,679,857 12-31-2014 ThCh$ 822,851,379 1,466,025,571 12-31-2015 ThCh$ 12-31-2014 ThCh$ 2,247,156 281,297,098 7,147,088 152,238,433 1,452,824,207 2,288,876,950 283,544,254 159,385,521 The detail of Trade and Other Current Payables as of December 31, 2015 and 2014 is as follows: Trade and other payables Energy suppliers (1) Fuel and gas suppliers Current No Current One to five years 12-31-2015 12-31-2014 12-31-2015 12-31-2014 ThCh$ ThCh$ ThCh$ ThCh$ 420,027,375 762,931,782 2,247,156 7,147,088 39,116,975 59,919,597 - - Payables for goods and services 570,627,472 792,235,405 208,653,963 111,531,445 Dividends payable to non-controlling interests 106,531,865 327,360,126 Taxes payables other than income tax 41,337,748 66,919,568 2,648,714 7,304,354 Fines and complaints (2) Research and development VAT debit Mitsubishi contract (LTSA) Obligations for social programs 94,165,502 98,470,156 12,867,918 18,071,828 17,940,704 24,157,710 - - - - 43,676,292 30,612,286 39,465,249 15,390,966 34,214,611 18,768,357 12,869,529 - - - - - - - Interest payments on trade payables 66,768,001 44,497,783 Other payables Total 23,545,736 40,774,279 12,588,468 9,244,924 1,452,824,207 2,288,876,950 283,544,254 159,385,521 See Note 21.4 for the description of the liquidity risk management policy. (1) Includes M$ 114,103,977 in liabilities owed to CAMMESA by our subsidiary Argentine Edesur S.A. These liabilities are greater than the account receivable recognized by Edesur as part of the implementation of Resolution N°250/13 - Cost Monitoring Mechanism (“MMC”). This resolution instructed CAMMESA to issue Sales Liquidation with Expiration Dates to Define (“LVFVD”) in favor of Edesur for accounts receivables, and accept these LVFVD as part payment of the debts of Edesur. (2) Corresponds mainly to fines and complaints that our Argentine subsidiary Edesur S.A. has received during the current period and prior years from the regulatory agency due to business service quality, technical product quality, and public safety. These fines have not been paid, as some were suspended under the Agreement Act signed in 2007 with the Argentine government, and others are pending until the Integral Tariff Review (“ITR”) takes place (see Note 4.2). The detail of trade payables, both up to date and past due as of December 31, 2015 and 2014 are presented in Appendix 8. 461 Consolidated Financial Statements  24. Provisions a) The breakdown of provisions as of December 31, 2015 and 2014 is as follows: Provisions Provision for legal proceedings Decommissioning or restoration (1) Provision for environmental issues Other provisions Total (1) See note 3a 12-31-2015 ThCh$ 42,090,525 750,345 73,381,544 11,076,762 Current 12-31-2014 ThCh$ 58,620,425 568,465 9,675,454 21,358,340 12-31-2015 ThCh$ 144,855,586 6,328,957 31,880,082 783,659 Non-current 12-31-2014 ThCh$ 165,347,715 31,647,729 248,397 - 127,299,176 90,222,684 183,848,284 197,243,841 The expected timing and amount of any cash outflows related to the above provisions is uncertain and depends on the final resolution of the related matters. b) Changes in provisions as of December 31, 2015 and 2014 are as follows: Provisions Changes in Provisions Balance at January 1, 2015 Additional provisions Increase (decrease) in existing provisions Provisions used Increase from adjustment to time value of money Foreign currency translation Transfer to non-current assets held for distribution to owners (2) Other increase (decrease) Total changes in provisions Balance at December 31, 2015 (2) See note 5,1,a) Provisions Changes in Provisions Balance at January 1, 2014 Additional provisions Increase (decrease) in existing provisions Provisions used Increase from adjustment to time value of money Foreign currency translation Other increase (decrease) Total changes in provisions Balance at December 31, 2014 Legal Proceedings Decommissioning or Restoration ThCh$ ThCh$ Environmental and Other Provisions (3) ThCh$ Total ThCh$ 223,968,140 - 22,857,949 (25,239,603) 31,412,199 (32,537,015) (14,829,363) (18,686,196) (37,022,029) 186,946,111 32,216,194 - 24,158,277 (7,275) 2,031,788 (234,141) 31,282,191 - 106,100,964 (12,262,416) 23,054,386 (24,082,348) 287,466,525 - 153,117,190 (37,509,294) 56,498,373 (56,853,504) (51,085,541) - (25,136,892) 7,079,302 (6,530,431) (440,299) 85,839,856 117,122,047 (72,445,335) (19,126,495) 23,680,935 311,147,460 Legal Proceedings Decommissioning or Restoration ThCh$ ThCh$ 221,031,705 - 46,561,327 (41,501,294) 13,396,466 2,742,310 (18,262,374) 2,936,435 223,968,140 24,109,594 6,857,384 15,850 - 1,135,525 97,841 - 8,106,600 32,216,194 Environmental and Other Provisions (3) ThCh$ 36,135,417 - 25,802,254 (9,941,920) 33,735,093 (8,494,789) (45,953,864) (4,853,226) 31,282,191 Total ThCh$ 281,276,716 6,857,384 72,379,431 (51,443,214) 48,267,084 (5,654,638) (64,216,238) 6,189,809 287,466,525 (3) Mainly corresponds to environmental provisions related to El Quimbo project in Colombia (400 MW) for ThCh$ 103,841,534. 462 2015 Annual Report Enersis                                       25. Employee Benefit Obligations 25.1 General information Enersis Américas and certain of its subsidiaries in Chile, Brazil, Colombia, Peru and Argentina granted various post-employment benefits for all or certain of their active or retired employees. These benefits are calculated and recognized in the financial statements according to the policy described in Note 3.m.1, and include primarily the following: a) 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 company, varies within a range from 5 to 15 years. • Electricity: The beneficiary receives a monthly bonus to cover a portion of his/her billed residential electricity consumption. • Health benefit: The beneficiary receives health coverage in addition to that s/he is entitled under applicable social security regime. b) Other benefits Five-year benefit: A benefit certain employees receive after 5 years and which begin to accrue from the second year onwards. Unemployment: A benefit paid regardless of whether the employee is fired or leaves voluntarily. This benefit accrues on a daily basis and is paid at the time of contract termination (although the law allows for partial withdrawals for housing and education). Seniority bonuses: There is an agreement to give workers (“subject to the collective agreement”) an extraordinary bonus for years of service upon completion of the equivalent of five years of actual work. c) Defined contribution benefits: The Group makes contributions to a retirement benefit plan where the beneficiary receives additional pension supplements upon his/her retirement, disability or death. 463 Consolidated Financial Statements25.2 Details, changes and presentation in financial statements a) The post-employment obligations associated with defined benefits plans and the related plan assets as of December 31, 2015 and 2014 are detailed as follows: General ledger accounts: Post-employment obligations, non-current Total Liabilities Total post-employment obligations, net Reconciliation with general ledger accounts: Post-employment obligations (-) Fair value of asset plan (*) Total Amount not recognized due to limit on Benefit Plan Assets (**) Minimum financing required (IFRIC 14) (***) Total post-employment obligations, net Balance at 12-31-2015 ThCh$ 187,270,474 187,270,474 187,270,474 12-31-2014 ThCh$ 269,930,412 269,930,412 269,930,412 Balance at 12-31-2015 ThCh$ 12-31-2014 ThCh$ 428,066,630 588,148,279 (284,231,299) (368,008,708) 143,835,331 220,139,571 22,057,178 21,377,965 33,710,733 16,080,108 187,270,474 269,930,412 (*) Plan assets to fund defined benefit plans only in our Brazilian subsidiaries (Ampla and Coelce); (**) In Coelce, certain pension plans currently have an actuarial surplus amounting to ThCh$ 22,057,178 as of December 31, 2015 (ThCh$ 33,710,733 in 2014). This actuarial surplus was not recognized as an asset in accordance with IFRIC 14 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction, because the Complementary Social Security (SPC) regulations - CGPC Resolution 26/2008 states that the surplus can only be used by the sponsor if the contingency reserve on the balance sheet of the Foundation is at the maximum percentage (25% of reserves). This ensures the financial stability of the plan based on the volatility of these obligations. If the surplus exceeds this limit, it may be used by the sponsor to reduce future contributions or be reimbursed to the sponsor. At Coelce, this proportion is less than 5% as of December 31, 2015. (***) In Ampla has been recognized in accordance with the provisions of IFRIC 14 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction an asset as of December 31, 2015 for ThCh$ 21,377,965 (ThCh$16,080,108 as of December 31, 2014). This corresponds to actuarial debt contracts that the company signed with Brasiletros (an institution providing pension funds exclusively to employees and retired employees of Ampla). This was done to equalize deficits on certain pension plans, since the sponsor assumes responsibility for these plans, in accordance with current legislation. The following table presents the balance recorded in the consolidated statement of financial position as a result of the difference between the actuarial liability from defined benefit plans and the fair value of the plan assets affected as of December 31, 2015 and at the end of each of the four prior years: Actuarial liability Assets affected Difference Limitation not recognized due to limit on Benefit Plan Assets Minimum financing required (IFRIC 14) Accounting balance of actuarial liability deficit 12-31-2015 ThCh$ 428,066,630 (284,231,299) 143,835,331 12-31-2014 ThCh$ 588,148,279 (368,008,708) 220,139,571 12-31-2013 ThCh$ 521,850,486 (322,830,274) 199,020,212 12-31-2012 ThCh$ 628,823,491 (393,880,165) 234,943,326 12-31-2011 ThCh$ 592,212,012 (366,137,888) 226,074,124 22,057,178 33,710,733 39,494,779 21,218,042 43,278,951 21,377,965 16,080,108 - - - 187,270,474 269,930,412 238,514,991 256,161,368 269,353,075 464 2015 Annual Report Enersis     b) The following amounts were recognized in the consolidated statement of comprehensive income for the years ended December 31, 2015, 2014 and 2013: Expense Recognized in Profit or Loss Current service cost for defined benefits plan Interest cost for defined benefits plan Interest income from the plan assets Past service cost Interest cost on asset ceiling components 12-31-2015 ThCh$ 12-31-2014 ThCh$ 12-31-2013 ThCh$ 7,092,780 4,513,850 4,462,712 56,568,888 59,981,707 54,773,138 (38,428,236) (42,145,223) (37,219,214) (523) 667,153 - 3,619,155 5,348,952 2,422,955 Expenses recognized in Profit or Loss 28,852,064 28,366,439 24,439,591 (Gains) losses from new measurements of defined benefit plans 19,027,368 36,681,734 (6,351,518) Total expense recognized in Comprehensive Income 47,879,432 65,048,173 18,088,073 c) The presentation of net actuarial liabilities as of December 31, 2015 and 2014 are as follows Net Actuarial Liabilities Balance at January 1, 2014 Net interest cost Service cost during the period Benefits paid during the period Contributions during the period Actuarial (gains) losses from changes in financial assumptions Actuarial (gains) losses from changes in experience adjustments Performance of plan assets, excluding interest Changes in the asset limit Minimum financing required (IFRIC 14) Transfer to liabilities classified as held for sale Defined benefit plan obligations from business combinations Foreign currency translation differences Balance at December 31, 2014 Net interest cost Service cost during the period Benefits paid during the period Contributions during the period Actuarial (gains) losses from changes in financial assumptions Actuarial (gains) losses from changes in experience adjustments Performance of plan assets, excluding interest Changes in the asset limit Minimum financing required (IFRIC 14) Transfer to liabilities classified as held for distribution to owners (*) Past service cost Foreign currency translation differences Net actuarial liabilities at December 31, 2015 (*) See Note 5.1.a) ThCh$ 238,514,991 23,185,436 5,181,003 (15,957,887) (17,998,323) 26,435,894 22,302,042 (13,293,908) (12,687,133) 16,080,108 (102,423) 1,297,048 (3,026,436) 269,930,412 21,759,807 7,092,780 (19,628,639) (15,322,998) (41,003,639) 33,191,124 25,577,816 (8,365,724) 9,627,791 (55,023,456) (523) (40,564,277) 187,270,474 465 Consolidated Financial Statements        d) The balance and changes in post-employment defined benefit obligations as of December 31, 2015 and 2014 are as follows: Actuarial Value of Post-employment Obligations Balance at January 1, 2014 Current service cost Interest cost Contributions from plan participants Actuarial (gains) losses from changes in financial assumptions Actuarial (gains) losses from changes in experience adjustments Foreign currency translation Benefits paid Past service cost Defined benefit plan obligations from business combinations Transfer to assets classified as held for sale Balance at December 31, 2014 Current service cost (*) Interest cost (*) Contributions from plan participants Actuarial (gains) losses from changes in financial assumptions (*) Actuarial (gains) losses from changes in experience adjustments (*) Foreign currency translation differences Benefits paid Past service cost Transfer to liabilities classified as held for distribution to owners Balance at December 31, 2015 ThCh$ 521,850,486 4,513,850 59,981,707 513,813 26,435,894 22,302,042 2,634,240 (51,945,531) 667,153 1,297,048 (102,423) 588,148,279 7,092,780 56,568,888 453,243 (41,003,639) 33,191,124 (108,872,703) (52,487,363) (523) (55,023,456) 428,066,630 (*) Current service cost related continuing operations for the year ended December 31, 2015 was ThCh$ 9,609,364 (ThCh$ 7,571,331 for the year ended December 31, 2014). Interest cost related to continuing operations for the year ended December 31, 2015 was ThCh$ 19,459,863 (ThCh$ 21,046,393 for the year ended December 31, 2014). Actuarial gains (losses) for defined benefit plans related to continuing operations were ThCh$ 13,381,836 for the year ended December 31, 2015 (ThCh$ 23,988,874 for the year ended December 31, 2014). As of December 31, 2015, out of the total amount of post-employment benefit obligations, 0.72% is from defined benefit plans in Chilean companies (9.58% as of December 31, 2014); 80.5% is from defined benefit plans in Brazilian companies (74.97% as of December 31, 2014); 15.01% is from defined benefit plans in Colombian companies (12.81% as of December 31, 2014); 3.16% is from defined benefit plans in Argentine subsidiaries (2.18% as of December 31, 2014); and the remaining 0.61% is from defined benefit plans in Peruvian companies (0.46% as of December 31, 2014). e) Changes in the fair value of the benefit plan assets are as follows: Fair Value of Benefit Plan Assets Balance at January 1, 2014 Interest income Performance of plan assets, excluding interest Foreign currency translation differences Employer contributions Contributions paid Benefits paid Balance at December 31, 2014 Interest income Performance of plan assets, excluding interest Foreign currency translation differences Employer contributions Contributions paid Benefits paid Balance at December 31, 2015 ThCh$ (322,830,274) (42,145,223) (13,293,908) (7,214,811) (17,998,323) (513,813) 35,987,644 (368,008,708) (38,428,236) 25,577,816 79,545,346 (15,322,998) (453,243) 32,858,724 (284,231,299) 466 2015 Annual Report Enersis     f) The main categories of benefit plan assets are as follows: Category of Benefit Plan Assets Equity instruments (variable income) Fixed-income assets Real Estate investments Other Total 12-31-2015 12-31-2014 ThCh$ 35,173,904 210,347,356 33,391,752 5,318,287 % ThCh$ 12% 46,892,034 74% 270,067,933 12% 2% 41,758,489 9,290,252 % 13% 73% 11% 3% 284,231,299 100% 368,008,708 100% The plans for retirement benefits and pension funds held by our Brazilian subsidiaries, Ampla and Coelce, maintain investments as determined by the resolutions of the National Monetary Council, ranked in fixed income, equities and real estate. Fixed income investments are predominantly invested in federal securities. Regarding equities, Faelce (an institution providing pension funds exclusively to employees and retired employees of Coelce) holds common shares of Coelce, while Brasiletros (a similar institution for employees of Ampla) holds shares in investment funds with a portfolio traded on Bovespa (the São Paulo Stock Exchange). Finally, with regards to real estate, both foundations have properties that are currently leased to Ampla and Coelce. The following table sets forth the assets affected by the plans and invested in shares, leases and real estate owned by the Group: Equity instruments Real Estate Total g) Reconciliation of asset ceiling: Reconciliation of Asset Ceiling Balance at January 1, 2014 Interest on assets not recognized Other changes in assets not recognized due to asset limit Foreign currency exchange translation differences Balance at December 31, 2014 Interest on assets not recognized Other changes in assets not recognized due to asset limit Foreign currency exchange differences Total asset ceiling at December 31, 2015 12-31-2015 ThCh$ 1 16,535,844 16,535,845 12-31-2014 ThCh$ 2 24,699,453 24,699,455 ThCh$ 39,494,779 5,348,952 (12,687,133) 1,554,135 33,710,733 3,619,155 (8,365,724) (6,906,986) 22,057,178 467 Consolidated Financial Statements          Other disclosures: - Actuarial assumptions: As of December 31, 2015 and 2014, the following assumptions were used in the actuarial calculation of defined benefit plans: Chile Brazil Colombia Argentina Peru 31/12/2015 31/12/2014 Discount rates used 5,00% 4,60% 31/12/2015 14,02% - 14,21% 31/12/2014 31/12/2015 31/12/2014 31/12/2015 31/12/2014 31/12/2015 31/12/2014 12,52% 7,25% 7,04% 5,50% 5,50% 7,60% 6,35% Expected rate of salary increases Mortality tables - Sensitivity: 4,00% 4,00% 9,69% 9,18% 4,20% 4,00% 0,00% 0,00% 3,00% 3,00% RV -2009 RV -2009 AT 2000 AT 2000 RV 2008 RV 2008 RV 2004 RV 2004 RV 2009 RV 2009 As of December 31, 2015, the sensitivity of the value of the actuarial liability for post-employment benefits to variations of 100 basis points in the discount rate assumes a decrease of ThCh$ 32,618,877 (ThCh$ 46,833,941 as of December 31, 2014) if the rate rises and an increase of ThCh$ 38,040,654 (ThCh$ 56,665,239 as of December 31, 2014) if the rate falls in those 100 basis points. - Defined contributions: The total expense recognized in the consolidated statement of comprehensive income within line item “Employee expenses” represents contributions payable to the defined contribution plans by the Group. For the year ended December 31, 2015, the amounts recognized as expenses were ThCh$4,799,333 (ThCh$4,700,327 for the year ended December 31, 2014). These amounts corresponds in its entirety to continuing operations. - Future disbursements: The estimates available indicate that ThCh$ 29,571,693 will be disbursed for defined benefit plans next year. - Length of commitments: The Group’s obligations have a weighted average length of 8.98 years, and the outflows of benefits for the next 5 years and more is expected to be as follows: Years 1 2 3 4 5 Over 5 ThCh 40,598,743 35,861,547 36,618,624 36,802,319 36,713,859 187,371,678 468 2015 Annual Report Enersis     26. Equity 26.1 Equity attributable to the shareholders of Enersis Américas 26.1.1 Subscribed and paid capital and number of shares The Enersis Américas Extraordinary Shareholders’ Meeting held on December 20, 2012 approved a capital increase of ThCh$ 2,844,397,890 divided into 16,441,606,297 shares of single series nominative common stock, non-preference and with no par value. The shares were paid for as follows: a) Endesa S.A. made a non-monetary payment for a total amount of ThCh$ 1,724,400,000 corresponding to 9,967,630,058 shares of Enersis Américas stock at a price of Ch$173 per share. For more information on the shares contributed by Endesa S.A., see Note 7. b) Cash contribution from non-controlling interests at a price of Ch$ 173 per share. During the preemptive right period for the subscription of shares which was from February 25 to March 26, 2013, a total of 16,284,562,981 shares were subscribed and paid, equivalent to 99.04% of the total authorized shares, remaining a total of 157,043,316 unsubscribed shares. Of the subscribed and paid-up shares, 9,967,630,058 shares corresponded to Endesa S.A. and 6,316,932,923 shares to non-controlling interests, of which 1,675,441,700 were subscribed in the U.S. (33,508,834 in ADRs). On March 28, 2013, the 157,043,316 unsubscribed shares were auctioned at Ch$ 182.3 per share. The total amount collected through the auction was ThCh$ 28,628,996, which includes a share issuance premium of ThCh$ 1,460,503. The issued capital of Enersis Américas as of December 31, 2015 and 2014 was ThCh$ 5,804,447,986, divided into 49,092,772,762 shares. As of December 31, 2015 and 2014, all of the shares issued by Enersis Américas are subscribed and paid, and they are listed for trade on the Bolsa de Comercio de Santiago de Chile, the Bolsa Electrónica de Chile, the Bolsa de Valores de Valparaiso, and the New York Stock Exchange (NYSE). The situation was similar at December 31, 2014. The share premium corresponds to the share issuance premium from the capital increases that took place in 2003 and 1995. In the former increase, the premium was ThCh$ 125,881,577, and in the latter it was ThCh$ 32,878,071. 469 Consolidated Financial StatementsThe share issuance premium generated during the capital increase in 2013, amounting to ThCh$1,460,503 as indicated above, absorbed a portion of the share issuance costs incurred in the process (see Note 26.5.c). At the Enersis Américas Extraordinary Shareholders Meeting held on November 25, 2014, an amendment to the Company by-laws was approved, whereby the issued capital was increased by ThCh$ 135,167,261. This amount corresponded to the “Share Premium” balance, after deducting the “Share issuance costs” that it was included in Other Reserves, without any distribution to shareholders as a dividend. The Company’s issued capital following the by-law amendment indicated above amounted to ThCh$ 5,804,447,986, divided into the same number of shares as previously, that is, 49,092,772,762 shares of single series nominative common stock, non-preference and with no par value. This change in the Company’s by-laws complies with Article 26 of the Chilean Companies Act (Ley de Sociedades Anónimas) and Circular No. 1,370 issued by the SVS, as amended by Circular No. 1,736, for the recognition of changes in equity as a result of recent increases in the Company’s issued capital. 26.1.2 Dividends At the Ordinary Shareholders Meeting held on April 16, 2013, it was agreed to distribute a minimum mandatory dividend (partially consisting of interim dividend No. 86) and an additional dividend, which together amounted to a total of Ch$ 4.25027 per share. Since interim dividend No. 86 had already been paid, the remainder was distributed and paid in final dividend No. 87 at Ch$ 3.03489 per share. On November 26, 2013, the Directors present at the meeting of the Board voted unanimously to distribute interim dividend N° 88 of Ch$1.42964 per share on January 31, 2014, against 2013 statutory net income. This was 15% of the Company’s net income calculated on September 30, 2013, in accordance with the Company’s current dividend policy. At the Ordinary Shareholders’ Meeting held on April 23, 2014, it was agreed to distribute a minimum mandatory dividend (partially consisting of interim dividend No. 88 of Ch$ 1.42964 per share) and an additional dividend, which in aggregate amounted to Ch$ 329,257,075,000, at Ch$ 6.70683 per share. Since interim dividend No. 88 had already been paid, the remainder was distributed and paid in final dividend No. 89, which totaled Ch$ 259,071,983,050 equivalent to Ch$ 5.27719 per share. On November 25, 2014, the Board unanimously agreed to distribute interim dividend No. 90 of Ch$ 0.83148 per share on January 30, 2015 against fiscal year 2014 statutory net income; this corresponded to 15% of net income calculated at September 30, 2014, in accordance with the current Company’s dividend policy. At the Ordinary Shareholders’ Meeting held on April 28, 2015, it was agreed to distribute a minimum mandatory dividend (partially consisting of interim dividend No. 90 of Ch$ 0.83148 per share) and an additional dividend, which in aggregate amounted to Ch$ 305,078,934,556 at Ch$ 6.21433 per share. Since interim dividend No. 90 had already been paid, the remainder was distributed and paid in final dividend No. 91, which totaled Ch$ 264,259,128,599 equivalent to Ch$ 5.38285 per share. On November 24, 2015, the Board unanimously agreed to distribute interim dividend No. 92 of $1.23875 per share on January 29, 2016 against fiscal year 2015 statutory net income, this corresponded to 15% of net income calculated at September 30, 2015, in accordance with the current Company’s dividend policy. 470 2015 Annual Report Enersis The following table sets forth the dividends paid in recent years: Dividend No. Type of Dividend Payment Date Pesos per Share Charged to 82 83 84 85 86 87 88 89 90 91 92 Interim Final Interim Final Interim Final Interim Final Interim Final Interim 1-27-2011 5-12-2011 1-27-2012 5-09-2012 1-25-2013 5-10-2013 1-31-2014 5-16-2014 1-30-2015 5-25-2015 1-29-2016 1.57180 5.87398 1.46560 4.28410 1.21538 3.03489 1.42964 5.27719 0.83148 5.38285 1.23875 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 26.2 Foreign currency translation reserves The following table sets forth foreign currency translation differences attributable to the shareholders of Enersis Américas for the years ended December 31, 2015, 2014 and 2013: Reserves for Accumulated Currency Translation Differences 12-31-2015 ThCh$ 12-31-2014 ThCh$ 12-31-2013 ThCh$ Empresa Distribuidora Sur S.A. (81,730,224) (76,439,681) (72,729,629) Compañía Distribuidora y Comercializadora de energía S.A. Edelnor Dock Sud Enel Brasil S.A. Central Costanera S.A. Inversiones GasAtacama Holding Ltda. (1) Emgesa S.A. E.S.P. 97,135,435 44,016,474 (6,090,959) 130,582,841 154,005,545 36,743,627 3,671,460 16,231,253 1,498,217 (518,430,268) (164,554,392) (234,432,842) 139,888 - 9,032,752 2,335,611 11,500,876 46,718,154 578,662 5,020,651 76,006,120 Hidroelectrica El Chocon S.A. (48,704,485) (30,145,604) (26,372,986) Generandes Perú S.A. Emp. Eléctrica de Piura Otros TOTAL 80,370,339 8,753,615 (4,580,660) (420,088,093) 71,188,012 7,321,905 (3,767,935) 35,154,874 24,832,786 3,379,674 (4,039,467) (56,022,016) (1) Beginning on January 1, 2015, the company changed its functional currency from U.S. dollar to Chilean pesos. 26.3 Capital Management The Company’s objective is to maintain an adequate level of capitalization in order to be able to secure its access to the financial markets, so as to fulfill its medium- and long-term goals while maximizing the return to its shareholders and maintaining a robust financial position. 471 Consolidated Financial Statements 26.4 Restrictions on subsidiaries transferring funds to the parent Certain of the Group’s subsidiaries 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 Américas. The Group’s restricted net assets as of December 31, 2105 from its subsidiaries Enel Brazil, Ampla, Coelce, Edelnor, and Piura were ThCh$ 1,855,727, ThCh$ 434,529,111, ThCh$ 52,144,627, ThCh$ 184,778,375, and ThCh$ 34,378,002, respectively; which in their entirety corresponds to continuing operations. The participation of the Company in the restricted net assets of its subsidiary Endesa Chile was ThCh$ 1,117,699,084, all of which is related to assets and liabilities classified as held for distribution to owners. 472 2015 Annual Report Enersis 26.5 Other reserves Other reserves within Equity attributable to shareholders of Enersis Américas for the years ended December 31, 2015, 2014 and 2013 are as follows: Balance at January 1, 2015 ThCh$ Changes 2015 ThCh$ Balance at December 31, 2015 ThCh$ Exchange differences on translation 35,154,874 (455,242,967) (420,088,093) Cash flow hedges Available-for-sale financial assets (69,404,677) 60,563,975 (8,840,702) 14,046 (181,785) (167,739) Other comprehensive income from non-current assets held for distribution to owners - (101,327,672) (101,327,672) Other miscellaneous reserves (2,619,970,627) (8,565,391) (2,628,536,018) TOTAL (2,654,206,384) (496,188,449) (3,158,960,224) Balance at January 1, 2014 ThCh$ Changes 2014 ThCh$ Balance at December 31, 2014 ThCh$ Exchange differences on translation (56,022,016) 91,176,890 35,154,874 Cash flow hedges Available-for-sale financial assets Other miscellaneous reserves TOTAL (3,086,726) (66,317,951) (69,404,677) 11,811 2,235 14,046 (2,414,023,486) (205,947,141) (2,619,970,627) (2,473,120,417) (181,085,967) (2,654,206,384) Balance at January 1, 2013 ThCh$ Changes 2015 ThCh$ Balance at December 31, 2013 ThCh$ Exchange differences on translation (40,720,059) (15,301,957) (56,022,016) Cash flow hedges Available-for-sale financial assets Other miscellaneous reserves TOTAL 27,594,028 (30,680,754) (3,086,726) 13,647 (1,836) 11,811 (1,498,010,369) (916,013,117) (2,414,023,486) (1,511,122,753) (961,997,664) (2,473,120,417) a) Reserves for exchange differences on translation: These reserves arise primarily from exchange differences relating to: - Translation of the financial statements of our subsidiaries with functional currencies other than the Chilean peso (see Note 2.6.3); and - Translation of goodwill arising from the acquisition of companies with functional currencies other than the Chilean peso (see Note 3.c). b) Cash flow hedging reserves: These reserve represent the cumulative effective portion of gains and losses on cash flow hedges (see Note 3.g.5. and 3.n). 473 Consolidated Financial Statements                              c) Other miscellaneous reserves: During the year ended December 31, 2015, there have been no changes in other reserves. During the year ended December 31, 2014, the changes in other reserves were originated primarily from the Public Stock Offering of our subsidiary Coelce (see Note 26.6.1). During the year ended December 31, 2013, the changes in other reserves were originated primarily from the capital increase carried out by Enersis Américas. (See Note 26.1.1). The main items and their effects are the following: 1) A charge of ThCh$ 897,856,109 resulting from the Enersis Américas capital increase that took place in the first quarter of 2013 (see Note 7). 2) A charge of ThCh$ 18,581,809 corresponding to share issuance costs recognized as described in Note 3.t). The detail of these expenses is as follows: Description of Expense (*) Gross Amount Tax Effect Net Amount Legal advising services Financial advising services and placement fees Audits Other expenses Sub Total Less Share placement surcharge Total (*) See Note 26.1.1. (By-law amendments). ThCh$ 1,154,819 22,436,327 1,113,980 347,764 25,052,890 1,460,503 23,592,387 ThCh$ (230,964) (4,487,265) (222,796) (69,553) (5,010,578) (5,010,578) ThCh$ 923,855 17,949,062 891,184 278,211 20,042,312 1,460,503 18,581,809 The other items included in “Other miscellaneous reserves” balance as of December 31, 2015 and 2014 are explained as follows: i) In accordance with Official Bulletin No. 456 from the SVS, included in this line item is the price-level restatement of paid-in capital from the date of transition to IFRS, January 1, 2004, to December 31, 2008. It is important to note that, while the Company adopted IFRS as its statutory accounting standards beginning on January 1, 2009, the date of transition to IFRS was the same as that used by its parent company, Endesa S.A., January 1, 2004, as an exemption permitted in IFRS 1 - First Time Adoption of IFRS. ii) Foreign currency translation differences existing at the time of transition to IFRS (IFRS 1 exemption). iii) The effects of business combinations under common control, arising primarily from the incorporation of the holding company Enel Brasil in 2005 and the merger of our Colombian subsidiaries, Emgesa and Betania, in 2007. 474 2015 Annual Report Enersis   26.6 Non-controlling Interests 26.6.1 COELCE Public Stock Offering On January 14, 2014, the Enersis Américas Board of Directors voted to hold a voluntary public offering of shares in its subsidiary Companhia Energética do Ceará’s (Coelce) as part of the process to make use of the funds raised in the Enersis Américas 2013 capital increase (see Notes 7 and 26.1.1). In the Public Stock Offering auction held on February 17, 2014, Enersis Américas acquired 2,964,650 shares of Coelce common stock at a price of R$ 49 per share, 8,818,006 shares of Class A preferred stock and 424 shares of Class B preferred stock, at a cost of ThCh$ 134,017,691. Having exceeded two-thirds of the total number of Coelce common stock shares in circulation, Enersis Américas extended the effective date of the offer for an additional three months from the date of the auction. The process concluded on May 16, 2014, during which time Enersis Américas acquired an additional 38,162 shares of common stock at a total price of ThCh$ 464,883. In summary, Enersis Américas increased its equity interest in Coelce by 15.18% to control, directly and indirectly, 74.05% of that company’s equity interest. The purchase of this non-controlling interests was recorded using the accounting policy described in Note 2.6.5. The difference between the carrying amount of the non-controlling interests acquired and the consideration paid resulted in a charge of ThCh$ 75,700,937 recorded directly in “Other reserves” in “Equity attributable to equity owners of Enersis Américas”. In addition, the components of “Other comprehensive income” were allocated accordingly, with an additional charge to “Other miscellaneous reserves” and a credit to “Reserves for exchange differences on translation” amounting to ThCh$ 28,385,172. 26.6.2 Acquisition of Inkia Holdings (Acter) Limited (Generandes Peru) On April 29, 2014, the Board of Enersis Américas authorized the signing of a purchase agreement for the acquisition of all the shares that Inkia Americas Holdings Limited held indirectly in Generandes Peru (39.01% of that company), which is the holding company for Edegel S.A.A. This purchase formed part of the process to use funds that had been raised in the Enersis Américas capital increase in 2013 (See Notes 7 and 26.1.1). On September 3, 2014, Enersis Américas confirmed and paid ThCh$ 253,015,133 to Inkia, and consolidated the companies Inkia Holdings (Acter) Limited, Southern Cone Power Ltd., Latin American Holding I Ltd., Latin American holding II Ltd. and Southern Cone Power Peru S.A.A. This transaction increased Enersis Américas’s indirect ownership interest in Edegel S.A.A by 21.14%, leaving Enersis Américas with direct and indirect control of 58.60% of the shares in this company. 475 Consolidated Financial StatementsThe acquisition of non-controlling interests was recorded according to the accounting policy described in Note 2.6.6. The difference between the carrying amount of non-controlling interests acquired and the consideration paid, resulted in a charge of ThCh$ 137,644,766 which was directly recognized in “Other reserves” within equity attributable to the shareholders of Enersis Américas. Additionally, the corresponding components of “Other comprehensive income” have been redistributed. Accordingly, there has been an additional charge to “Other miscellaneous reserves” and a credit to “Reserve for Exchange Differences on Translation” of ThCh$ 32,862,564. 26.6.3 Capitalization of Central Dock Sud During 2014, Enersis Américas and the rest of Central Dock Sud’s (CDS) shareholders worked to find a solution to the statutory negative equity situation that CDS was facing since December 2013. If the negative worth situation was not corrected, the company would have to be dissolved according to Argentine regulation. On December 1, 2014, Enersis Américas S.A. acquired from Endesa Latinoamérica S.A. certain loans granted to Central Dock Sud S.A. (CDS), with a nominal amount of US$ 106 million. The amount paid was US$29 million. These loans were then re-denominated to Argentine pesos and interests were condoned. The remaining portion of these loans was contributed by Enersis Américas S.A. to the share capital of Inversora Dock Sud (IDS) and subsequently to CDS, at nominal amount. Similar contribution was made by each of the other shareholders, capitalizing their credits granted to CDS. In exchange, shares were issued by IDS and CDS, respectively, in proportion to the loans contributed or cash capitalized, and in the case of Enersis Américas, these loans were partially repaid in cash. All of these movements constitute a related party transaction (the “Transaction”), approved in the case of Enersis Américas, at an Extraordinary Shareholders Meeting. The Transaction restored the equity of CDS, whilst maintaining substantially the same proportion of ownership in this company as held prior to the Transaction: Enersis Américas (40%), YPF (40%) and Pan American Energy (20%). This Transaction was recognized under the accounting policy described in Note 2.6.6 and resulted in an additional credit to “Other miscellaneous reserves” for ThCh$ 35,149,573. 476 2015 Annual Report Enersis  26.6.4 The detail of non-controlling interests is as follows: Companies Ampla Energía E Serviços S.A. Compañía Energética Do Ceará S.A. Enel Brasil Compañía Distribuidora y Comercializadora de energía S.A. Emgesa S.A. E.S.P. Empresa de Distribución Eléctrica de Lima Norte S.A.A Generandes Perú S.A. Edegel S.A.A Chinango S.A.C. Empresa Distribuidora Sur S.A. Central Costanera S.A. Hidroelectrica El Chocón S.A. Inversora Dock Sud S.A. Central Dock Sud S.A. Chilectra S.A. (*) Empresa Nacional de Electricidad S.A. (Endesa Chile S.A.) (*) Empresa Eléctrica Pehuenche S.A. (*) Empresa Electrica de Piura S.A. Otras TOTAL (*) Disposal groups held for distribution to owners Non-controlling interests Equity 12-31-2015 % 0.36% 26.00% 0.00% 12-31-2015 ThCh$ 1,670,381 102,309,115 - 12-31-2014 ThCh$ 2,255,335 111,448,154 - 12-31-2015 ThCh$ (39,491) 18,722,431 - Profit (Loss) 12-31-2014 ThCh$ 183,454 14,883,752 - 12-31-2013 ThCh$ 3,034,036 17,016,391 16,428,497 270,808,395 412,145,236 250,654,641 377,921,404 63,817,434 109,187,510 80,226,416 148,822,948 82,283,946 130,147,172 51.52% 51.53% 24.32% 0.00% 16.40% 20.00% 27.87% 24.32% 32.33% 42.86% 29.76% 0.91% 75,852,375 - 91,467,160 14,268,911 7,873,277 3,759,405 48,208,347 24,059,619 23,536,086 10,118,233 67,927,394 - 90,506,207 14,707,216 (17,558,352) 5,197,207 26,841,549 20,265,854 17,613,948 11,127,491 15,467,507 - 15,078,085 3,042,018 27,738,670 (242,897) 35,783,793 11,745,296 11,624,813 1,743,825 7.35% 5.00% 40.02% 1,059,805,601 10,900,863 - 6,876,091 2,163,659,095 1,080,652,251 12,597,077 2,118,220 2,967,103 2,077,242,699 157,225,820 8,674,207 - 3,313,547 482,882,568 14,524,832 12,672,210 17,790,998 3,002,284 (23,918,192) 11,072,950 3,538,006 (6,544,116) (8,857,902) 1,370,642 133,622,088 10,522,428 3,192,773 3,206,288 419,311,859 12,282,813 17,074,639 13,299,054 2,033,307 25,129,551 (7,067,970) 3,811,615 (8,111,021) (12,361,345) 2,056,796 142,871,823 8,415,147 3,543,412 2,998,733 454,886,596 477 Consolidated Financial Statements        27. Revenue and Other Income The detail of revenue presented in the statement of comprehensive income for the years ended December 31, 2015, 2014 and 2013 is as follows: Revenues Balance at 12-31-2015 ThCh$ 12-31-2014 (As adjusted) ThCh$ 12-31-2013 (As adjusted) ThCh$ Energy sales (2) 4,224,381,699 4,349,833,962 3,651,343,245 Generation Regulated customers Non-regulated customers Spot market sales Other customers Distribution Residential Business Industrial Other consumers Other sales Gas sales Sales of products and services Revenue from other services Tolls and transmission Metering equipment leases Public lighting Verifications and connections Engineering and consulting services Other services 1,202,615,603 141,728,020 664,527,858 338,995,080 57,364,645 3,021,766,096 1,485,240,702 722,634,924 299,722,654 514,167,816 40,648,051 16,779,246 23,868,805 402,615,560 248,565,422 70,485 23,162,879 4,580,679 1,404,449 124,831,646 1,192,444,520 137,536,698 676,023,056 338,908,636 39,976,130 3,157,389,442 1,583,857,094 737,471,663 309,822,204 526,238,481 34,220,939 8,154,469 26,066,470 422,400,836 251,366,453 82,069 28,050,833 4,200,004 12,826,190 125,875,287 941,860,009 84,590,770 575,318,424 249,598,348 32,352,467 2,709,483,236 1,298,051,111 666,523,624 324,807,780 420,100,721 19,035,917 8,817,669 10,218,248 308,616,190 212,027,293 399,082 24,865,721 15,560,660 8,791,981 46,971,453 Total operating revenue 4,667,645,310 4,806,455,737 3,978,995,352 Other Operating Income Balance at 12-31-2015 ThCh$ 12-31-2014 (As adjusted) ThCh$ 12-31-2013 (As adjusted) ThCh$ Revenue from construction contracts Other income (1) 230,687,290 403,106,978 186,078,925 213,835,126 159,283,676 389,868,841 Total other income 633,794,268 399,914,051 549,152,517 (1) It includes ThCh$ 52,400,888 for the year ended December 31, 2015 (ThCh$ 39,282,571 and ThCh$ 31,262,764 for the years ended December 31, 2014 and 2013, respectively) from new availability contracts signed in December 2012 between our subsidiary Central Costanera S.A. and CAMMESA. As part of application of Resolution SE No. 32/2015 issued on March 11, 2015, which for purposes of funding the expenditures and investments used for in the normal operations to render distribution of electricity public services approved a temporary increase for TCh$ 264,987,134 in our subsidiary Edesur beginning on February 1, 2015 without any increase in tariffs. In addition, ThCh$ 52,504,644 for the year ended December 31, 2015 were recognized as revenue as part of the Cost Monitoring Mechanism (MMC) adjustment for recognizing costs that are not passed on to electricity tariffs related to January 2015 period, and (2) additionally ThCh$ 33,972,330 for the year ended December 31, 2015 (ThCh$ 132,373,799 for the year ended December 31, 2014) were recognized as revenue from energy sales as the Resolution also states that beginning on February 1, 2015, the funds from the program PUREE become revenue for the distribution company, due to increased costs incurred. 478 2015 Annual Report Enersis 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, 2015, 2014 and 2013 is as follows: Raw Materials and Consumables Used Energy purchases Fuel consumption Transportation costs Balance at 12-31-2014 (As adjusted) ThCh$ 12-31-2013 (As adjusted) ThCh$ 12-31-2015 ThCh$ (1,885,916,426) (1,824,002,786) (1,252,146,609) (258,113,922) (205,534,394) (174,504,021) (245,813,374) (265,185,382) (216,858,693) Costs from construction contracts (230,687,290) (186,078,925) (159,283,676) Other raw materials and consumables (156,670,500) (150,867,949) (287,474,303) Total (2,777,201,512) (2,631,669,436) (2,090,267,302) 29. Employee Benefits Expense Employee expenses for the years ended December 31, 2015, 2014 and 2013 are as follows: Employee Benefits Expense Balance at 12-31-2014 (As adjusted) ThCh$ 12-31-2013 (As adjusted) ThCh$ 12-31-2015 ThCh$ Wages and salaries (309,761,095) (266,240,462) (222,075,924) Post-employment benefit obligations expense (9,609,364) (7,571,331) (6,127,265) Social security and other contributions (159,641,192) (110,493,404) (111,537,633) Other employee expenses (8,686,496) (5,363,276) (5,827,374) Total (487,698,147) (389,668,473) (345,568,196) 30. Depreciation, Amortization and Impairment Losses The detail of depreciation, amortization and impairment losses for the years ended December 31, 2015, 2014 and 2013 are as follows: Depreciation (*) Amortization (*) Subtotal Impairment (losses) reversals (**) 12-31-2015 ThCh$ (245,598,045) Balance at 12-31-2014 (As adjusted) ThCh$ (244,376,550) 12-31-2013 (As adjusted) ThCh$ (225,418,868) (74,944,152) (106,366,200) (90,547,273) (320,542,197) (39,811,756) (350,742,750) (38,329,942) (315,966,141) (66,664,976) Total (360,353,953) (389,072,692) (382,631,117) (*) Depreciation and amortization from the Brazilian subsidiaries are presented net of taxes PIS / COFINS. Depreciation and amortization expense of these subsidiaries amounted to ThCh$ 5,764,027. (**) Information on Impairment 479 Consolidated Financial Statements              Information on Impairment Losses by Business Segment Generation 12-31-2015 ThCh$ 12-31-2014 (As adjusted) 12-31-2013 (As adjusted) ThCh$ ThCh$ Distribution Others Balance at 12-31-2015 (As adjusted) (As adjusted) 12-31-2015 (As adjusted) (As adjusted) 12-31-2015 (As adjusted) (As adjusted) 12-31-2014 12-31-2013 12-31-2014 12-31-2013 12-31-2014 12-31-2013 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Financial assets (see Note 10c) (4,794,591) (2,024,186) (718,835) (34,909,411) (20,090,180) (24,895,035) (75,708) (78,174) (39,779,710) (22,192,540) (25,613,870) Intangible assets other than goodwill (see Note 15) - - - Property, plant and equipment (see note 17) (32,046) (1,188,617) (12,388,154) - - (14,948,785) (28,662,952) - - - - - - - (14,948,785) (28,662,952) (32,046) (1,188,617) (12,388,154) Total (4,826,637) (3,212,803) (13,106,989) (34,909,411) (35,038,965) (53,557,987) (75,708) (78,174) (39,811,756) (38,329,942) (66,664,976) - - - - As of December 31, 2015, the assets related to Chilean operations that are subject to impairment test have been classified as non-current assets held for distribution to owners. (See Notes 3.k and 5.1) 31. Other Expenses Other miscellaneous operating expenses for the years ended December 31, 2015, 2014 and 2013 are as follows: Other Expenses Other supplies and services Professional, outsourced and other services Repairs and maintenance Indemnities and fines Taxes and charges Insurance premiums Leases and rental costs Marketing, public relations and advertising Other supplies Travel expenses Environmental expenses (1) Total Otros gastos por naturaleza 12-31-2015 ThCh$ (58,304,067) (162,323,852) (107,991,590) (12,912,842) (32,252,186) (28,245,178) (12,449,187) (5,270,796) (53,888,664) (13,769,681) (1,120,706) Balance at 12-31-2014 (As adjusted) ThCh$ (53,366,436) (168,177,580) (112,073,249) (16,742,020) (13,489,033) (23,656,637) (14,352,431) (4,700,359) (41,535,780) (13,814,472) (1,821,267) 12-31-2013 (As adjusted) ThCh$ (47,840,403) (166,380,283) (97,452,388) (14,889,784) (18,666,007) (17,668,508) (10,835,191) (4,363,014) (24,450,757) (2,783,610) (417,966) (488,528,749) (463,729,264) (405,747,911) (1) It includes research costs recognized as expenses during the years ended December 31, 2015, 2014 and 2013 for ThCh$ 237,085, ThCh$ 403,574, and ThCh$ 1,996,818, respectively. 32. Other Gains (Losses) Other gains (losses) for the years ended December 31, 2015, 2014 and 2013 are as follows: Other Gains (Losses) Gain on sale of land Other Total Otras ganancias (pérdidas) Balance at 12-31-2014 (As adjusted) 12-31-2013 (As adjusted) ThCh$ ThCh$ - 876,554 876,554 3,429,125 1,213,143 4,642,268 12-31-2015 ThCh$ (6,758,695) 192,470 (6,566,225) 480 2015 Annual Report Enersis                                                                     Information on Impairment Losses by Business Segment 12-31-2015 (As adjusted) (As adjusted) 12-31-2014 12-31-2013 12-31-2015 12-31-2014 (As adjusted) 12-31-2013 (As adjusted) 12-31-2015 12-31-2014 (As adjusted) 12-31-2013 (As adjusted) 12-31-2015 12-31-2014 (As adjusted) 12-31-2013 (As adjusted) ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Generation Distribution Others Balance at Financial assets (see Note 10c) (4,794,591) (2,024,186) (718,835) (34,909,411) (20,090,180) (24,895,035) (75,708) (78,174) Intangible assets other than goodwill (see Note 15) - - - Property, plant and equipment (see note 17) (32,046) (1,188,617) (12,388,154) - - (14,948,785) (28,662,952) - - - - - - Total (4,826,637) (3,212,803) (13,106,989) (34,909,411) (35,038,965) (53,557,987) (75,708) (78,174) - - - - (39,779,710) (22,192,540) (25,613,870) - (14,948,785) (28,662,952) (32,046) (1,188,617) (12,388,154) (39,811,756) (38,329,942) (66,664,976) As of December 31, 2015, the assets related to Chilean operations that are subject to impairment test have been classified as non-current assets held for distribution to owners. (See Notes 3.k and 5.1) 31. Other Expenses 33. Financial Results Other miscellaneous operating expenses for the years ended December 31, 2015, 2014 and 2013 are Financial income and costs for the years ended December 31, 2015, 2014 and 2013 are as follows: as follows: Other Expenses Other supplies and services Professional, outsourced and other services Repairs and maintenance Indemnities and fines Taxes and charges Insurance premiums Leases and rental costs Marketing, public relations and advertising Other supplies Travel expenses Environmental expenses (1) Total Otros gastos por naturaleza 12-31-2015 ThCh$ (58,304,067) (162,323,852) (107,991,590) (12,912,842) (32,252,186) (28,245,178) (12,449,187) (5,270,796) (53,888,664) (13,769,681) (1,120,706) Balance at 12-31-2014 (As adjusted) ThCh$ (53,366,436) (168,177,580) (112,073,249) (16,742,020) (13,489,033) (23,656,637) (14,352,431) (4,700,359) (41,535,780) (13,814,472) (1,821,267) 12-31-2013 (As adjusted) ThCh$ (47,840,403) (166,380,283) (97,452,388) (14,889,784) (18,666,007) (17,668,508) (10,835,191) (4,363,014) (24,450,757) (2,783,610) (417,966) (488,528,749) (463,729,264) (405,747,911) (1) It includes research costs recognized as expenses during the years ended December 31, 2015, 2014 and 2013 for ThCh$ 237,085, ThCh$ 403,574, and ThCh$ 1,996,818, respectively. 32. Other Gains (Losses) Other gains (losses) for the years ended December 31, 2015, 2014 and 2013 are as follows: Other Gains (Losses) Gain on sale of land Other Total Otras ganancias (pérdidas) Balance at 12-31-2014 (As adjusted) 12-31-2013 (As adjusted) ThCh$ ThCh$ - 876,554 876,554 3,429,125 1,213,143 4,642,268 12-31-2015 ThCh$ (6,758,695) 192,470 (6,566,225) Financial Income Balance at 12-31-2015 ThCh$ 12-31-2014 (As adjusted) 12-31-2013 (As adjusted) ThCh$ ThCh$ Income from deposits and other financial instruments 124,314,454 86,576,973 98,281,675 Financial income on plan assets (Brazil) (1) 135,153 224,310 200,526 Other financial income (2) (3) (4) Total 170,320,665 164,320,479 148,133,613 294,770,272 251,121,762 246,615,814 Financial Costs Financial costs Bank loans Balance at 12-31-2015 12-31-2014 (As adjusted) 12-31-2013 (As adjusted) ThCh$ ThCh$ ThCh$ (385,455,340) (432,314,329) (325,972,302) (38,921,033) (33,061,726) (30,027,336) Secured and unsecured obligations (179,258,559) (172,288,757) (149,082,277) Financial leasing Valuation of financial derivatives Financial provisions Post-employment benefit obligations Capitalized borrowing costs Other financial costs (3) (1,414,900) (656,450) (54,616,547) (19,595,016) (817,985) (124,470) (46,354,184) (21,270,704) (1,892,614) (14,246,840) (37,415,815) (17,979,936) 73,008,564 55,101,384 29,326,555 (164,001,399) (213,497,887) (104,654,039) Gain (loss) from indexed assets and liabilities (*) (9,266,040) (13,630,068) (11,007,801) Foreign currency exchange differences (**) (4) 128,238,047 (18,493,594) (28,534,786) Total financial costs Total financial results (266,483,333) (464,437,991) (365,514,889) 28,286,939 (213,316,229) (118,899,075) (1) See Note 25.2.b). (2) On December 31, 2014 our subsidiary Central Costanera was forgiven interest owed to Mitsubishi and the present value of the Mitsubishi debt amounting to ThCh$ 84,534,955, under a restructuring agreement for this debt. The main conditions of the restructuring agreement include: the forgiveness of interest due and accrued as of September 30, 2014; the rescheduling of capital repayments over a period of 18 years, with a 12 month grace period so that obligations must be fully repaid before December 15, 2032; a minimum annual payment of US$ 3,000,000 in principal in quarterly installments at an annual interest rate of 0.25%; the maintenance of a pledge over assets and establishing restrictions on the payment of dividends. (3) For the year ended December 31, 2015, this item includes a net financial income of ThCh$ 37,618,478 from the financial updating of non- amortized assets at their new replacement value at the end of the concession in the distribution companies Ampla and Coelce. For the year ended December 31, 2014, this financial updating generated a net financial cost of ThCh$ 68,728,638 as part of the revised tariff in 2014 in our Brazilian subsidiary Ampla and for the year ended December 31, 2013 a net financial income of ThCh$ 54,591,750 (See Note 9). (4) For the year ended December 31, 2015, our Argentine subsidiaries, Central Costanera, Chocón and Dock Sud recognized a gain for foreign currency exchange differences for ThCh$ 141,559,960 as a result of the dollarization of the receivables related to Central Vuelta de Obligado project (“VOSA”) and financial income of ThCh$ 57,079,871 for the interest accrued between the maturity date of each sale settlement contributed to the project and the receivables dollarized. See Note 36.5. 481 Consolidated Financial Statements                                                                    In addition, our Argentine subsidiary Edesur, recognized a financial income for ThCh$ 27,215,856 for compensations arising from the application of the Cost Monitoring Mechanism (MMC). See Note 36.5. The effects on financial results from exchange differences and the application of indexed assets and liabilities are originated from the following: Results from Indexed Assets and Liabilities (*) Balance at 12-31-2015 ThCh$ 12-31-2014 (As adjusted) 12-31-2013 (As adjusted) ThCh$ ThCh$ Other non-financial assets Current tax assets and liabilities Other financial liabilities (financial debt and derivative instruments) - 1,240 - 21,157 57,533 - (9,267,280) (13,651,225) (11,065,334) Total (9,266,040) (13,630,068) (11,007,801) Exchange Differences (**) Cash and cash equivalents Other financial assets Other non-financial assets Trade and other receivables Balance at 12-31-2014 (As adjusted) 12-31-2013 (As adjusted) ThCh$ ThCh$ 22,199,061 34,690,822 93,239 4,314,865 36,371,996 2,598,929 12-31-2015 ThCh$ 7,304,624 170,679,018 4,995,376 51,506,895 12,791,191 21,298,397 Current tax assets and liabilities - 24,876 (15,094) Other financial liabilities (financial debt and derivative instruments) Trade and other payables Other non-financial liabilities (44,858,948) (74,345,529) (74,877,013) (37,360,135) (10,195,770) (15,455,737) (24,028,783) (3,751,484) (2,771,129) Total 128,238,047 (18,493,594) (28,534,786) 482 2015 Annual Report Enersis                                         34. Income Taxes The following table presents the components of the income tax expense/(benefit) recorded in the consolidated statement of comprehensive income for the years ended December 31, 2015, 2014 and 2013: Current Income Tax and Adjustments to Current Income Tax for Previous Periods 12-31-2015 12-31-2014 (As adjusted) 12-31-2013 (As adjusted) ThCh$ ThCh$ ThCh$ Balance at Current income tax (469,517,752) (450,655,418) (457,664,808) Tax benefit from tax losses, tax credits or temporary differences not previously recognized for the current period (current tax credits and/or benefits) 29,215,046 34,026,202 23,234,522 Adjustments to current tax from the previous period (5,195,560) 2,871,018 (1,810,633) Benefit / (expense) for current income tax due to changes in tax rates or the introduction of new taxes - - - Other current tax benefit / (expense) (3,063,579) (97,812) (4,099,916) Current tax expense, net (448,561,845) (413,856,010) (440,340,835) Benefit / (expense) from deferred taxes for origination and reversal of temporary differences Benefit / (expense) from deferred taxes due to changes in tax rates or the introduction of new taxes Other components of deferred tax (benefit) /expense Adjustments for prior periods deferred taxes (2,635,730) (72,465,637) (45,506,055) 2,369,050 - - 28,770,033 (1,238,888) - - (3,244,670) - Total deferred tax benefit / (expense) (16,736,022) (2,114,508) Income tax expense, continuing operations (523,663,212) (430,592,032) (442,455,343) 483 Consolidated Financial Statements                    Rate 12-31-2015 Rate Rate 12-31-2014 (As adjusted) ThCh$ 12-31-2013 (As adjusted) ThCh$ ThCh$ 1,279,812,171 1,178,120,689 1,237,790,881 (22.50%) (12.88%) 4.93% (4.39%) (0.41%) (0.21%) (287,957,738) (164,815,692) (21.00%) (11.89%) (247,405,345) (140,032,350) (20.00%) (13.99%) (247,558,175) (173,156,559) 63,075,794 (56,128,320) - (5,195,560) (2,635,730) 8.36% 98,468,095 (13.63%) (160,565,951) 2.44% 0.24% 28,770,033 2,871,018 - 9.95% (5.62%) (0.10%) (0.15%) 123,130,008 (69,552,897) (1,238,888) (1,810,633) - (5.47%) (70,005,966) (1.08%) (12,697,532) (5.84%) (72,268,199) (18.42%) (235,705,474) (15.55%) (183,186,687) (15.75%) (194,897,168) (40.92%) (523,663,212) (36.55%) (430,592,032) (35.75%) (442,455,343) 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 recognized in the consolidated statement of comprehensive income for the years ended December 31, 2015, 2014 and 2013: Reconciliation of Tax Expense ACCOUNTING INCOME BEFORE TAX Total tax income (expense) using statutory rate Tax effect of rates applied in other countries Tax effect of non-taxable revenues and benefits from tax losses and tax credits Tax effect of non-tax-deductible expenses Tax effect of changes in income tax rates Tax effect of adjustments to taxes in previous periods Adjustments for prior periods deferred taxes Price level restatement for tax purposes (investments in subsidiaries, associates and joint ventures and equity) Total adjustments to tax expense using statutory rate Income tax benefit (expense), continuing operations The main temporary differences are detailed in note 19 a. 35. Information by Segment 35.1 Basis of segmentation The Group’s activities are organized primarily around its core businesses: electric energy generation, transmission and distribution. On that basis, the Group has established two major business lines. Considering presents the differentiated information that is analyzed by the Company’s chief operating decision maker, segment information has been organized by the geographical areas in which the Group operates: • Chile (Discontinued operations) • Argentina • Brazil • Peru • Colombia Given that the 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. 484 2015 Annual Report Enersis                                                    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 recognized in the consolidated statement of comprehensive income for the years ended December 31, 2015, 2014 and 2013: Reconciliation of Tax Expense Tax effect of non-taxable revenues and benefits from tax losses and tax credits ACCOUNTING INCOME BEFORE TAX Total tax income (expense) using statutory rate Tax effect of rates applied in other countries Tax effect of non-tax-deductible expenses Tax effect of changes in income tax rates Tax effect of adjustments to taxes in previous periods Adjustments for prior periods deferred taxes Total adjustments to tax expense using statutory rate Income tax benefit (expense), continuing operations The main temporary differences are detailed in note 19 a. 35. Information by Segment 35.1 Basis of segmentation Price level restatement for tax purposes (investments in subsidiaries, associates and joint ventures and equity) • Argentina • Brazil • Peru • Colombia Given that the 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. Rate 12-31-2015 Rate ThCh$ 12-31-2014 (As adjusted) ThCh$ Rate 12-31-2013 (As adjusted) ThCh$ 1,279,812,171 1,178,120,689 1,237,790,881 (22.50%) (12.88%) 4.93% (4.39%) (0.41%) (0.21%) (287,957,738) (164,815,692) (21.00%) (11.89%) (247,405,345) (140,032,350) (20.00%) (13.99%) (247,558,175) (173,156,559) 63,075,794 (56,128,320) - (5,195,560) (2,635,730) 8.36% 98,468,095 (13.63%) (160,565,951) 2.44% 0.24% 28,770,033 2,871,018 - 9.95% (5.62%) (0.10%) (0.15%) 123,130,008 (69,552,897) (1,238,888) (1,810,633) - (5.47%) (70,005,966) (1.08%) (12,697,532) (5.84%) (72,268,199) (18.42%) (235,705,474) (15.55%) (183,186,687) (15.75%) (194,897,168) (40.92%) (523,663,212) (36.55%) (430,592,032) (35.75%) (442,455,343) The Group’s activities are organized primarily around its core businesses: electric energy generation, The accounting policies used to determine the segment information are the same as those used in the transmission and distribution. On that basis, the Group has established two major business lines. preparation of the Group’s consolidated financial statements. Based on this context and taking into consideration Considering presents the differentiated information that is analyzed by the Company’s chief operating decision operations is presented, in the case of assets and liabilities, as held for distribution to owners, and in the case maker, segment information has been organized by the geographical areas in which the Group operates: of income statement accounts, as discontinued operations. the corporate reorganization as discussed in Notes 5.1 and 41, the financial information related to the Chilean • Chile (Discontinued operations) The following tables present details of this information by segment: 485 Consolidated Financial Statements                                                  35.2 Generation and Transmission, Distribution and by Country ASSETS CURRENT ASSETS Cash and cash equivalents Other current financial assets Other current non-financial assets Trade and other current receivables Line of Business Generation and Transmission Distribution Eliminations and others Total 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 3,974,309,548 1,258,524,552 2,233,248,507 1,682,754,340 1,706,003,655 990,219,996 7,913,561,710 3,931,498,888 158,234,836 444,764,922 174,458,784 274,881,316 852,469,724 985,099,253 1,185,163,344 1,704,745,491 11,466,253 50,850,528 34,171,369 25,046,824 22,624,824 23,558,051 68,262,446 99,455,403 26,895,066 61,264,981 72,076,278 109,728,709 3,017,713 4,104,422 101,989,057 175,098,112 281,533,993 498,363,943 802,286,571 1,178,238,427 4,311,003 5,084,533 1,088,131,567 1,681,686,903 Current accounts receivable from related companies 69,698,172 77,105,049 27,676,364 29,295,267 (93,807,606) (87,958,976) 3,566,930 18,441,340 Inventories Current tax assets 33,665,661 73,796,781 61,185,174 56,267,388 207,062 3,455,985 95,057,897 133,520,154 3,751,263 52,378,348 11,961,862 9,296,409 31,741,463 48,897,765 47,454,588 110,572,522 Non-current assets or disposal groups held for sale or held for distribution to owners 3,389,064,304 - 1,049,432,105 - 885,439,472 7,978,963 5,323,935,881 7,978,963 NON-CURRENT ASSETS Other non-current financial assets Other non-current non-financial assets Trade and other non-current receivables Non-current accounts receivable from related companies Investments accounted for using the equity method Intangible assets other than goodwill Goodwill Property, plant and equipment Investment property Deferred tax assets 4,070,922,143 6,814,137,154 4,091,696,107 5,034,348,611 (627,025,569) 141,337,663 7,535,592,681 11,989,823,428 625,982 7,937,828 488,884,301 496,520,403 17,921 26,363,289 489,528,204 530,821,520 9,847,779 12,590,288 54,741,348 61,369,954 12,973,581 3,845,938 77,562,708 77,806,180 310,451,501 185,266,255 88,178,936 106,105,806 65,427 269,614 398,695,864 291,641,675 355,485 486,605 - - 355,485 486,605 478,361,882 609,409,322 491,519,716 574,400,438 (938,921,153) (1,110,176,150) 30,960,445 73,633,610 33,665,518 55,498,838 933,484,014 1,097,100,837 14,249,740 15,612,381 981,399,272 1,168,212,056 100,700,655 125,609,898 76,703,162 100,220,100 266,795,230 1,185,023,629 444,199,047 1,410,853,627 3,097,266,606 5,723,349,345 1,905,927,300 2,522,222,675 372,727 (11,356,301) 5,003,566,633 8,234,215,719 40,002,220 94,475,380 51,901,845 75,921,793 17,420,958 23,240,701 109,325,023 193,637,874 - - - 8,514,562 - 8,514,562 - - - - TOTAL ASSETS 8,045,231,691 8,072,661,706 6,324,944,614 6,717,102,951 1,078,978,086 1,131,557,659 15,449,154,391 15,921,322,316 The eliminations column corresponds to transactions between companies in different lines of business and country, primarily purchases and sales of energy and services. 486 2015 Annual Report Enersis                                                                                                 35.2 Generation and Transmission, Distribution and by Country ASSETS CURRENT ASSETS Cash and cash equivalents Other current financial assets Other current non-financial assets Trade and other current receivables Inventories Current tax assets NON-CURRENT ASSETS Other non-current financial assets Other non-current non-financial assets Trade and other non-current receivables Non-current accounts receivable from related companies Investments accounted for using the equity method Intangible assets other than goodwill Goodwill Property, plant and equipment Investment property Deferred tax assets Line of Business Generation and Transmission Distribution Eliminations and others Total 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 3,974,309,548 1,258,524,552 2,233,248,507 1,682,754,340 1,706,003,655 990,219,996 7,913,561,710 3,931,498,888 158,234,836 444,764,922 174,458,784 274,881,316 852,469,724 985,099,253 1,185,163,344 1,704,745,491 11,466,253 50,850,528 34,171,369 25,046,824 22,624,824 23,558,051 68,262,446 99,455,403 26,895,066 61,264,981 72,076,278 109,728,709 3,017,713 4,104,422 101,989,057 175,098,112 281,533,993 498,363,943 802,286,571 1,178,238,427 4,311,003 5,084,533 1,088,131,567 1,681,686,903 Current accounts receivable from related companies 69,698,172 77,105,049 27,676,364 29,295,267 (93,807,606) (87,958,976) 3,566,930 18,441,340 33,665,661 73,796,781 61,185,174 56,267,388 207,062 3,455,985 95,057,897 133,520,154 3,751,263 52,378,348 11,961,862 9,296,409 31,741,463 48,897,765 47,454,588 110,572,522 Non-current assets or disposal groups held for sale or held for distribution to owners 3,389,064,304 - 1,049,432,105 - 885,439,472 7,978,963 5,323,935,881 7,978,963 4,070,922,143 6,814,137,154 4,091,696,107 5,034,348,611 (627,025,569) 141,337,663 7,535,592,681 11,989,823,428 625,982 7,937,828 488,884,301 496,520,403 17,921 26,363,289 489,528,204 530,821,520 9,847,779 12,590,288 54,741,348 61,369,954 12,973,581 3,845,938 77,562,708 77,806,180 310,451,501 185,266,255 88,178,936 106,105,806 65,427 269,614 398,695,864 291,641,675 - - 355,485 486,605 - - 355,485 486,605 478,361,882 609,409,322 491,519,716 574,400,438 (938,921,153) (1,110,176,150) 30,960,445 73,633,610 33,665,518 55,498,838 933,484,014 1,097,100,837 14,249,740 15,612,381 981,399,272 1,168,212,056 100,700,655 125,609,898 76,703,162 100,220,100 266,795,230 1,185,023,629 444,199,047 1,410,853,627 3,097,266,606 5,723,349,345 1,905,927,300 2,522,222,675 372,727 (11,356,301) 5,003,566,633 8,234,215,719 - - - - - 8,514,562 - 8,514,562 40,002,220 94,475,380 51,901,845 75,921,793 17,420,958 23,240,701 109,325,023 193,637,874 TOTAL ASSETS 8,045,231,691 8,072,661,706 6,324,944,614 6,717,102,951 1,078,978,086 1,131,557,659 15,449,154,391 15,921,322,316 The eliminations column corresponds to transactions between companies in different lines of business and country, primarily purchases and sales of energy and services. 487 Consolidated Financial Statements                                                                                                Line of Business Generation and Transmission Distribution Eliminations and others Total LIABILITIES AND EQUITY CURRENT LIABILITIES Other current financial liabilities Trade and other current payables 12-31-2015 12-31-2014 ThCh$ ThCh$ 2,735,116,868 1,622,353,344 230,270,298 297,869,150 342,712,347 777,931,218 Current accounts payable to related companies 104,568,189 371,111,287 72,131,804 189,021,282 (66,802,485) (416,451,947) 109,897,508 143,680,622 Other current provisions Current tax liabilities Current provisions for employee benefits Other current non-financial liabilities 81,419,354 38,351,988 91,117,121 96,623,249 - - 1,951,295 40,466,452 Liabilities associated with groups of assets or disposal groups held for sale or distribution to owners 1,883,078,264 - 417,021,351 (354,447,513) 5,488,147 1,945,652,102 5,488,147 NON-CURRENT LIABILITIES Other non-current financial liabilities Trade and other non-current payables Non-current accounts payable to related companies Other long-term provisions Deferred tax liabilities Non-current provisions for employee benefits Other non-current non-financial liabilities EQUITY Equity attributable to shareholders of Enersis Américas Issued capital Retained earnings Share premium Other reserves Non-controlling interests 1,313,277,539 2,398,122,150 941,834,867 1,871,186,406 97,364,873 10,685,702 3,858,836 4,908,454 41,883,233 34,859,087 181,262,110 397,978,536 21,548,342 43,461,827 18,698,412 41,869,004 3,996,837,284 4,052,186,212 3,996,837,284 4,052,186,212 1,476,722,861 1,512,762,830 2,358,601,470 2,172,639,133 206,058,198 206,599,062 (44,545,245) 160,185,187 - - - - - - 2,163,659,095 2,077,242,699 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 1,838,355,464 1,856,594,893 (68,091,532) (284,126,253) 4,505,380,800 3,194,821,984 206,125,030 119,552,373 251,478,180 4,384,156 687,873,508 421,805,679 1,037,064,551 1,403,375,115 73,047,309 107,570,617 1,452,824,207 2,288,876,950 45,879,822 24,166,415 - 51,247,787 16,472,461 - - 27,324,424 2,376,603 142,607,960 115,472,313 622,909 127,299,176 90,222,684 - 35,966,491 76,925,875 1,308,553 11,883,262 39,226,339 129,275,589 - - 1,559,780,584 1,770,828,652 (119,092,912) 278,330,784 2,753,965,211 4,447,281,586 883,297,767 1,153,615,811 22,163,958 264,295,311 1,847,296,592 3,289,097,528 178,027,558 155,526,685 8,151,823 - 283,544,254 159,385,521 157,179,286 - (167,864,988) (4,908,454) 141,808,620 162,308,328 34,940,876 61,859,841 163,123,897 213,666,598 156,431 15,701,629 2,598,235 76,426 183,848,284 197,243,841 18,523,107 231,904,615 478,361,484 12,801,987 187,270,474 269,930,412 1,402,580 23,851,389 - (12,457,593) 20,100,992 53,262,800 2,926,808,566 3,089,679,406 1,266,162,530 1,137,353,128 8,189,808,380 8,279,218,746 2,926,808,566 3,089,679,406 1,266,162,530 1,137,353,128 6,026,149,285 6,201,976,047 860,651,565 872,231,352 3,467,073,560 3,419,453,804 5,804,447,986 5,804,447,986 1,414,711,314 1,384,094,891 (392,651,261) (504,999,579) 3,380,661,523 3,051,734,445 3,547,484 3,965,297 (209,605,682) (210,564,359) - - 647,898,203 829,387,866 (1,598,654,087) (1,566,536,738) (3,158,960,224) (2,654,206,384) - - - - Total Liabilities and Equity 8,045,231,691 8,072,661,706 6,324,944,614 6,717,102,951 1,078,978,086 1,131,557,659 15,449,154,391 15,921,322,316 The eliminations column corresponds to transactions between companies in different lines of business and country, primarily purchases and sales of energy and services. 488 2015 Annual Report Enersis                                                                                                                         LIABILITIES AND EQUITY CURRENT LIABILITIES Other current financial liabilities Trade and other current payables Other current provisions Current tax liabilities Current provisions for employee benefits Other current non-financial liabilities NON-CURRENT LIABILITIES Other non-current financial liabilities Trade and other non-current payables Non-current accounts payable to related companies Other long-term provisions Deferred tax liabilities Non-current provisions for employee benefits Other non-current non-financial liabilities EQUITY Equity attributable to shareholders of Enersis Américas Issued capital Retained earnings Share premium Other reserves Non-controlling interests 12-31-2015 12-31-2014 ThCh$ ThCh$ 2,735,116,868 1,622,353,344 230,270,298 297,869,150 342,712,347 777,931,218 81,419,354 38,351,988 91,117,121 96,623,249 - - - 1,313,277,539 2,398,122,150 941,834,867 1,871,186,406 97,364,873 10,685,702 3,858,836 4,908,454 41,883,233 34,859,087 181,262,110 397,978,536 21,548,342 43,461,827 18,698,412 41,869,004 3,996,837,284 4,052,186,212 3,996,837,284 4,052,186,212 1,476,722,861 1,512,762,830 2,358,601,470 2,172,639,133 206,058,198 206,599,062 (44,545,245) 160,185,187 Line of Business Generation and Transmission Distribution Eliminations and others Total Current accounts payable to related companies 104,568,189 371,111,287 72,131,804 189,021,282 (66,802,485) (416,451,947) 109,897,508 143,680,622 Liabilities associated with groups of assets or disposal groups held for sale or distribution to owners 1,883,078,264 417,021,351 - (354,447,513) 5,488,147 1,945,652,102 5,488,147 1,951,295 40,466,452 35,966,491 76,925,875 1,308,553 11,883,262 39,226,339 129,275,589 45,879,822 24,166,415 - 51,247,787 16,472,461 - - 622,909 127,299,176 90,222,684 27,324,424 2,376,603 142,607,960 115,472,313 - - - - 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 1,838,355,464 1,856,594,893 (68,091,532) (284,126,253) 4,505,380,800 3,194,821,984 206,125,030 119,552,373 251,478,180 4,384,156 687,873,508 421,805,679 1,037,064,551 1,403,375,115 73,047,309 107,570,617 1,452,824,207 2,288,876,950 1,559,780,584 1,770,828,652 (119,092,912) 278,330,784 2,753,965,211 4,447,281,586 883,297,767 1,153,615,811 22,163,958 264,295,311 1,847,296,592 3,289,097,528 178,027,558 155,526,685 8,151,823 - 283,544,254 159,385,521 157,179,286 - (167,864,988) (4,908,454) - - 141,808,620 162,308,328 34,940,876 61,859,841 163,123,897 213,666,598 156,431 15,701,629 2,598,235 76,426 183,848,284 197,243,841 18,523,107 231,904,615 478,361,484 12,801,987 187,270,474 269,930,412 1,402,580 23,851,389 - (12,457,593) 20,100,992 53,262,800 2,926,808,566 3,089,679,406 1,266,162,530 1,137,353,128 8,189,808,380 8,279,218,746 2,926,808,566 3,089,679,406 1,266,162,530 1,137,353,128 6,026,149,285 6,201,976,047 860,651,565 872,231,352 3,467,073,560 3,419,453,804 5,804,447,986 5,804,447,986 1,414,711,314 1,384,094,891 (392,651,261) (504,999,579) 3,380,661,523 3,051,734,445 3,547,484 3,965,297 (209,605,682) (210,564,359) - - 647,898,203 829,387,866 (1,598,654,087) (1,566,536,738) (3,158,960,224) (2,654,206,384) Total Liabilities and Equity 8,045,231,691 8,072,661,706 6,324,944,614 6,717,102,951 1,078,978,086 1,131,557,659 15,449,154,391 15,921,322,316 - - - - - - 2,163,659,095 2,077,242,699 The eliminations column corresponds to transactions between companies in different lines of business and country, primarily purchases and sales of energy and services. 489 Consolidated Financial Statements                                                                                                                        Line of Business STATEMENT OF COMPREHENSIVE INCOME REVENUES AND OTHER OPERATING INCOME Revenues Energy sales Other sales Other services rendered Other operating income RAW MATERIALS AND CONSUMABLES USED Energy purchases Fuel consumption Transportation expenses Other miscellaneous supplies and services 12-31-2015 ThCh$ 1,734,761,772 1,668,272,704 1,486,031,970 21,124,909 161,115,825 66,489,068 (677,940,967) (235,046,359) (258,113,922) (124,612,122) (60,168,564) Generation 12-31-2014 ThCh$ 1,762,869,133 1,701,051,112 1,514,124,760 13,080,015 173,846,337 61,818,021 (653,688,007) (258,676,854) (205,534,394) (124,900,859) (64,575,900) 12-31-2013 ThCh$ 1,481,343,900 1,419,296,486 1,305,087,063 8,817,669 105,391,754 62,047,414 (514,810,596) (168,445,337) (174,504,021) (97,694,362) (74,166,876) 12-31-2015 ThCh$ Distribution 12-31-2014 ThCh$ 12-31-2013 ThCh$ 3,890,722,930 3,802,108,560 3,429,456,365 3,321,156,669 3,463,626,805 2,941,988,973 3,022,021,032 3,157,667,595 2,709,628,604 19,523,142 279,612,495 569,566,261 21,140,924 284,818,286 338,481,755 3,648,462 228,711,907 487,467,392 Eliminations and others 12-31-2015 ThCh$ (324,045,124) (321,784,063) (283,671,303) 12-31-2014 ThCh$ (358,607,905) (358,222,180) (321,958,393) (38,112,760) (2,261,061) (36,263,787) (385,725) 12-31-2013 ThCh$ (382,652,396) (382,290,107) (363,372,422) 6,569,786 (25,487,471) (362,289) 12-31-2015 ThCh$ Total 12-31-2014 ThCh$ 12-31-2013 ThCh$ 5,301,439,578 5,206,369,788 4,528,147,869 4,667,645,310 4,806,455,737 3,978,995,352 4,224,381,699 4,349,833,962 3,651,343,245 40,648,051 402,615,560 633,794,268 34,220,939 422,400,836 399,914,051 19,035,917 308,616,190 549,152,517 (2,423,363,923) (2,338,428,095) (1,960,921,763) (1,951,642,845) (1,900,048,593) (1,446,778,480) 324,103,378 300,772,778 360,446,666 334,722,661 385,465,057 (2,777,201,512) (2,631,669,436) (2,090,267,302) 363,077,208 (1,885,916,426) (1,824,002,786) (1,252,146,609) - - - (147,073,303) (324,647,775) (168,191,394) (270,188,108) (144,200,252) (369,943,031) 25,872,051 (2,541,451) 27,906,871 (2,182,866) - 25,035,921 (2,648,072) (258,113,922) (245,813,374) (387,357,790) (205,534,394) (265,185,382) (336,946,874) (174,504,021) (216,858,693) (446,757,979) - - CONTRIBUTION MARGIN 1,056,820,805 1,109,181,126 966,533,304 1,467,359,007 1,463,680,465 1,468,534,602 58,254 1,838,761 2,812,661 2,524,238,066 2,574,700,352 2,437,880,567 Other work performed by the entity and capitalized Employee benefits expense Other expenses 14,387,605 (107,850,396) (96,544,274) 13,548,280 (92,178,851) (84,426,859) 9,255,740 (78,825,827) (71,568,476) 52,567,319 42,103,255 37,795,406 (365,683,363) (372,678,643) (283,638,620) (376,865,536) (256,035,562) (331,687,784) 146,345 (14,164,388) (19,305,832) 118,883 (13,851,002) (2,436,869) 83,324 67,101,269 55,770,418 47,134,470 (10,706,807) (2,491,651) (487,698,147) (488,528,749) (389,668,473) (463,729,264) (345,568,196) (405,747,911) GROSS OPERATING RESULT 866,813,740 946,123,696 825,394,741 781,564,320 845,279,564 918,606,662 (33,265,621) (14,330,227) (10,302,473) 1,615,112,439 1,777,073,033 1,733,698,930 Depreciation and amortization expense Impairment losses (reversal of impairment losses) recognized in profit or loss (147,291,267) (4,826,638) (142,609,270) (3,212,803) (130,646,915) (13,106,989) (173,636,385) (34,909,411) (208,532,299) (35,038,965) (185,622,948) (53,557,987) 385,455 (75,707) 398,819 (78,174) 303,722 (320,542,197) - (39,811,756) (350,742,750) (38,329,942) (315,966,141) (66,664,976) OPERATING INCOME FINANCIAL RESULT Financial income Cash and cash equivalents Financial income Financial costs Bank borrowings Secured and unsecured obligations Other Profits (losses) from indexed assets and liabilities Foreign currency exchange differences Positive Negative Share of profit of associates accounted for using the equity method Other gains (losses) Gain (loss) from other investments Gain (loss) from the sale of property, plant and equipment Income before tax Income tax Net income from continuing operations Income from discontinued operations NET INCOME Net income attributable to: Shareholders of Enersis Américas Non-controlling interests 714,695,835 800,301,623 681,640,837 573,018,524 601,708,300 679,425,727 (32,955,873) (14,009,582) -9,998,751 1,254,758,486 1,388,000,341 1,351,067,813 99,864,652 88,032,028 86,308,158 1,723,870 (109,517,207) (18,475,838) (74,589,458) (16,451,911) - 121,349,831 219,603,572 (98,253,741) 2,678,513 (394,854) - (394,854) (22,550,175) 111,084,259 26,728,453 84,355,806 (85,935,531) (21,393,127) (78,729,951) 14,187,547 - (47,698,903) 39,651,691 (87,350,594) - 798,130 707,468 90,662 (94,072,305) 34,749,918 24,151,441 10,598,477 (91,401,647) (21,454,758) (55,830,044) (14,116,845) - (37,420,576) 46,792,154 (84,212,730) - 904,474 768,433 136,041 (97,880,409) 177,432,364 8,809,058 168,623,306 (252,708,515) 84,910,412 14,617,999 70,292,413 (54,492,019) 152,859,615 15,448,973 137,410,642 (275,453,176) (335,813,681) (206,291,506) (21,914,438) (76,174,292) (11,665,822) (80,574,024) (8,572,508) (68,810,393) (177,364,446) (243,573,835) (128,908,605) 1,240 139,163 9,537,474 (9,398,311) 787,056 (6,171,371) - (6,171,371) 1,579 (1,806,825) 4,303,366 (6,110,191) 2,595,760 78,424 - 78,424 (1,060,128) 3,380,853 (4,440,981) 975,149 3,737,794 - - 3,737,794 26,302,696 29,305,880 29,197,237 108,643 (484,957) 1,469,244 26,540,609 (9,267,280) 6,749,053 45,868,225 (39,119,172) (132,598) - - - 61,942,461 55,127,091 (109,417,698) 123,198,337 (10,565,117) 388,687,486 (67,659,871) (13,631,647) 31,012,134 57,413,955 (28,279,149) (385,455,340) (432,314,329) (325,972,302) 29,665,249 59,006,281 58,681,261 325,020 (70) (24,441,840) (3,837,239) (11,007,801) 9,945,918 36,265,682 - - - 28,286,939 (213,316,229) (118,899,075) 294,770,272 124,314,453 170,455,819 251,121,762 (68,071,246) 277,846,556 246,615,814 98,281,675 148,334,139 (38,921,032) (179,258,560) (167,275,748) (9,266,040) 128,238,047 275,009,271 3,332,971 (6,566,225) - (6,566,225) 355,628,537 (298,533,783) (297,046,159) (13,630,068) (18,493,594) 101,369,012 2,560,023 876,554 707,468 169,086 (30,027,336) (149,082,277) (146,862,689) (11,007,801) (28,534,786) 86,438,689 979,875 4,642,268 768,433 3,873,835 (26,401,821) (26,319,764) (146,771,224) (119,862,606) (114,973,475) (35,737) 4,726 (28,494,810) (139,229,808) 816,844,146 778,549,578 588,473,006 469,753,800 351,673,969 629,646,651 (6,785,775) 47,897,142 19,671,224 1,279,812,171 1,178,120,689 1,237,790,881 (335,604,989) (254,393,601) (192,628,860) (135,349,415) (124,465,813) (176,573,448) (52,708,808) (51,732,618) (73,253,035) (523,663,212) (430,592,032) (442,455,343) 481,239,157 223,831,259 705,070,416 524,155,977 123,226,510 647,382,487 395,844,146 179,048,751 574,892,897 334,404,385 139,672,809 474,077,194 227,208,156 134,065,799 361,273,955 453,073,203 114,054,872 567,128,075 (59,494,583) 24,816,458 (34,678,125) (3,835,476) 24,648,762 20,813,286 (53,581,811) 24,961,585 756,148,959 388,320,526 747,528,657 281,941,071 795,335,538 318,065,208 (28,620,226) 1,144,469,485 1,029,469,728 1,113,400,746 705,070,416 647,382,487 574,892,897 474,077,194 361,273,955 567,128,075 (34,678,125) 20,813,286 (28,620,226) 1,144,469,485 1,029,469,728 1,113,400,746 661,586,917 482,882,568 610,157,869 419,311,859 658,514,150 454,886,596 - - - - - STATEMENT OF CASH FLOW Cash flow from (used in) operating activities Cash flow from (used in) investment activities Cash flows from (used in) financing activities 12-31-2015 ThCh$ Generation 12-31-2014 ThCh$ 12-31-2013 ThCh$ 1,098,739,134 (545,677,324) (797,630,653) 1,026,718,651 (357,107,188) (575,096,742) 874,169,034 (194,635,422) (628,577,198) 12-31-2015 ThCh$ Distribution 12-31-2014 ThCh$ Eliminations and others 12-31-2013 ThCh$ 12-31-2015 ThCh$ 12-31-2014 ThCh$ 12-31-2013 ThCh$ 12-31-2015 ThCh$ Total 12-31-2014 ThCh$ 12-31-2013 ThCh$ 945,599,327 769,341,885 855,536,268 (120,887,859) (28,729,658) 1,923,450,602 1,698,037,994 1,700,975,644 (787,409,305) (225,244,202) (513,969,018) (220,294,230) (488,352,158) (327,075,688) 117,787,581 (37,339,524) (540,899,509) (1,215,299,048) (299,686,990) (1,223,887,089) (488,068,691) 1,292,418,242 (1,060,214,379) (1,283,459,663) 336,765,356 (98,022,542) 571,389,216 The eliminations column corresponds to transactions between companies in different lines of business and country, primarily purchases and sales of energy and services. 490 2015 Annual Report Enersis                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Line of Business STATEMENT OF COMPREHENSIVE INCOME REVENUES AND OTHER OPERATING INCOME Revenues Energy sales Other sales Other services rendered Other operating income RAW MATERIALS AND CONSUMABLES USED Energy purchases Fuel consumption Transportation expenses Other miscellaneous supplies and services 12-31-2015 ThCh$ Generation 12-31-2014 ThCh$ 12-31-2013 ThCh$ 1,734,761,772 1,762,869,133 1,481,343,900 1,668,272,704 1,701,051,112 1,419,296,486 1,486,031,970 1,514,124,760 1,305,087,063 21,124,909 161,115,825 66,489,068 13,080,015 173,846,337 61,818,021 8,817,669 105,391,754 62,047,414 (677,940,967) (235,046,359) (258,113,922) (124,612,122) (60,168,564) (653,688,007) (258,676,854) (205,534,394) (124,900,859) (64,575,900) (514,810,596) (168,445,337) (174,504,021) (97,694,362) (74,166,876) 12-31-2015 ThCh$ 3,890,722,930 3,321,156,669 3,022,021,032 19,523,142 279,612,495 569,566,261 Distribution 12-31-2014 ThCh$ 3,802,108,560 3,463,626,805 3,157,667,595 21,140,924 284,818,286 338,481,755 12-31-2013 ThCh$ 3,429,456,365 2,941,988,973 2,709,628,604 3,648,462 228,711,907 487,467,392 (2,423,363,923) (1,951,642,845) - (147,073,303) (324,647,775) (2,338,428,095) (1,900,048,593) - (168,191,394) (270,188,108) (1,960,921,763) (1,446,778,480) - (144,200,252) (369,943,031) Eliminations and others 12-31-2015 ThCh$ (324,045,124) (321,784,063) (283,671,303) - (38,112,760) (2,261,061) 324,103,378 300,772,778 - 25,872,051 (2,541,451) 12-31-2014 ThCh$ (358,607,905) (358,222,180) (321,958,393) - (36,263,787) (385,725) 360,446,666 334,722,661 - 27,906,871 (2,182,866) 12-31-2013 ThCh$ (382,652,396) (382,290,107) (363,372,422) 6,569,786 (25,487,471) (362,289) 12-31-2015 ThCh$ 5,301,439,578 4,667,645,310 4,224,381,699 40,648,051 402,615,560 633,794,268 Total 12-31-2014 ThCh$ 5,206,369,788 4,806,455,737 4,349,833,962 34,220,939 422,400,836 399,914,051 12-31-2013 ThCh$ 4,528,147,869 3,978,995,352 3,651,343,245 19,035,917 308,616,190 549,152,517 385,465,057 363,077,208 - 25,035,921 (2,648,072) (2,777,201,512) (1,885,916,426) (258,113,922) (245,813,374) (387,357,790) (2,631,669,436) (1,824,002,786) (205,534,394) (265,185,382) (336,946,874) (2,090,267,302) (1,252,146,609) (174,504,021) (216,858,693) (446,757,979) CONTRIBUTION MARGIN 1,056,820,805 1,109,181,126 966,533,304 1,467,359,007 1,463,680,465 1,468,534,602 58,254 1,838,761 2,812,661 2,524,238,066 2,574,700,352 2,437,880,567 Other work performed by the entity and capitalized Employee benefits expense Other expenses 14,387,605 (107,850,396) (96,544,274) 13,548,280 (92,178,851) (84,426,859) 9,255,740 (78,825,827) (71,568,476) 52,567,319 (365,683,363) (372,678,643) 42,103,255 (283,638,620) (376,865,536) 37,795,406 (256,035,562) (331,687,784) 146,345 (14,164,388) (19,305,832) 118,883 (13,851,002) (2,436,869) 83,324 (10,706,807) (2,491,651) 67,101,269 (487,698,147) (488,528,749) 55,770,418 (389,668,473) (463,729,264) 47,134,470 (345,568,196) (405,747,911) GROSS OPERATING RESULT 866,813,740 946,123,696 825,394,741 781,564,320 845,279,564 918,606,662 (33,265,621) (14,330,227) (10,302,473) 1,615,112,439 1,777,073,033 1,733,698,930 Depreciation and amortization expense Impairment losses (reversal of impairment losses) recognized in profit or loss (147,291,267) (142,609,270) (4,826,638) (3,212,803) (130,646,915) (13,106,989) (173,636,385) (34,909,411) (208,532,299) (35,038,965) (185,622,948) (53,557,987) 385,455 (75,707) 398,819 (78,174) 303,722 - (320,542,197) (39,811,756) (350,742,750) (38,329,942) (315,966,141) (66,664,976) OPERATING INCOME FINANCIAL RESULT Financial income Cash and cash equivalents Financial income Financial costs Bank borrowings Secured and unsecured obligations Other Profits (losses) from indexed assets and liabilities Foreign currency exchange differences Positive Negative Other gains (losses) Share of profit of associates accounted for using the equity method Gain (loss) from other investments Gain (loss) from the sale of property, plant and equipment Income before tax Income tax Net income from continuing operations Income from discontinued operations NET INCOME Net income attributable to: Shareholders of Enersis Américas Non-controlling interests 714,695,835 800,301,623 681,640,837 573,018,524 601,708,300 679,425,727 (32,955,873) (14,009,582) -9,998,751 1,254,758,486 1,388,000,341 1,351,067,813 99,864,652 88,032,028 86,308,158 1,723,870 (109,517,207) (18,475,838) (74,589,458) (16,451,911) 121,349,831 219,603,572 (98,253,741) 2,678,513 (394,854) - - (394,854) (22,550,175) 111,084,259 26,728,453 84,355,806 (85,935,531) (21,393,127) (78,729,951) 14,187,547 (47,698,903) 39,651,691 (87,350,594) - - 798,130 707,468 90,662 (94,072,305) 34,749,918 24,151,441 10,598,477 (91,401,647) (21,454,758) (55,830,044) (14,116,845) (37,420,576) 46,792,154 (84,212,730) - - 904,474 768,433 136,041 (97,880,409) 177,432,364 8,809,058 168,623,306 (275,453,176) (21,914,438) (76,174,292) (177,364,446) 1,240 139,163 9,537,474 (9,398,311) 787,056 (6,171,371) - (6,171,371) (252,708,515) 84,910,412 14,617,999 70,292,413 (335,813,681) (11,665,822) (80,574,024) (243,573,835) 1,579 (1,806,825) 4,303,366 (6,110,191) 2,595,760 78,424 - 78,424 (54,492,019) 152,859,615 15,448,973 137,410,642 (206,291,506) (8,572,508) (68,810,393) (128,908,605) - (1,060,128) 3,380,853 (4,440,981) 975,149 3,737,794 - 3,737,794 26,302,696 29,305,880 29,197,237 108,643 (484,957) 1,469,244 (28,494,810) 26,540,609 (9,267,280) 6,749,053 45,868,225 (39,119,172) (132,598) - - - 61,942,461 55,127,091 (109,417,698) 123,198,337 (10,565,117) 388,687,486 (139,229,808) (67,659,871) (13,631,647) 31,012,134 57,413,955 (26,401,821) (35,737) - - - 29,665,249 59,006,281 58,681,261 325,020 (28,279,149) (70) (24,441,840) (3,837,239) (11,007,801) 9,945,918 36,265,682 (26,319,764) 4,726 - - - 28,286,939 294,770,272 124,314,453 170,455,819 (385,455,340) (38,921,032) (179,258,560) (167,275,748) (9,266,040) 128,238,047 275,009,271 (146,771,224) 3,332,971 (6,566,225) - (6,566,225) (213,316,229) 251,121,762 (68,071,246) 277,846,556 (432,314,329) 355,628,537 (298,533,783) (297,046,159) (13,630,068) (18,493,594) 101,369,012 (119,862,606) 2,560,023 876,554 707,468 169,086 (118,899,075) 246,615,814 98,281,675 148,334,139 (325,972,302) (30,027,336) (149,082,277) (146,862,689) (11,007,801) (28,534,786) 86,438,689 (114,973,475) 979,875 4,642,268 768,433 3,873,835 816,844,146 778,549,578 588,473,006 469,753,800 351,673,969 629,646,651 (6,785,775) 47,897,142 19,671,224 1,279,812,171 1,178,120,689 1,237,790,881 (335,604,989) (254,393,601) (192,628,860) (135,349,415) (124,465,813) (176,573,448) (52,708,808) (51,732,618) (73,253,035) (523,663,212) (430,592,032) (442,455,343) 481,239,157 223,831,259 705,070,416 524,155,977 123,226,510 647,382,487 395,844,146 179,048,751 574,892,897 334,404,385 139,672,809 474,077,194 227,208,156 134,065,799 361,273,955 453,073,203 114,054,872 567,128,075 (59,494,583) 24,816,458 (34,678,125) (3,835,476) 24,648,762 20,813,286 (53,581,811) 24,961,585 (28,620,226) 756,148,959 388,320,526 1,144,469,485 747,528,657 281,941,071 1,029,469,728 795,335,538 318,065,208 1,113,400,746 705,070,416 647,382,487 574,892,897 474,077,194 361,273,955 567,128,075 (34,678,125) 20,813,286 (28,620,226) 1,144,469,485 661,586,917 482,882,568 1,029,469,728 610,157,869 419,311,859 1,113,400,746 658,514,150 454,886,596 STATEMENT OF CASH FLOW Cash flow from (used in) operating activities Cash flow from (used in) investment activities Cash flows from (used in) financing activities 12-31-2015 ThCh$ Generation 12-31-2014 ThCh$ 12-31-2013 ThCh$ 1,098,739,134 1,026,718,651 874,169,034 (545,677,324) (797,630,653) (357,107,188) (575,096,742) (194,635,422) (628,577,198) 12-31-2015 ThCh$ Distribution 12-31-2014 ThCh$ Eliminations and others 12-31-2013 ThCh$ 12-31-2015 ThCh$ 12-31-2014 ThCh$ 12-31-2013 ThCh$ 12-31-2015 ThCh$ Total 12-31-2014 ThCh$ 12-31-2013 ThCh$ 945,599,327 (787,409,305) (225,244,202) 769,341,885 (513,969,018) (220,294,230) 855,536,268 (488,352,158) (327,075,688) (120,887,859) 117,787,581 (37,339,524) (98,022,542) 571,389,216 (488,068,691) (28,729,658) (540,899,509) 1,292,418,242 1,923,450,602 (1,215,299,048) (1,060,214,379) 1,698,037,994 (299,686,990) (1,283,459,663) 1,700,975,644 (1,223,887,089) 336,765,356 The eliminations column corresponds to transactions between companies in different lines of business and country, primarily purchases and sales of energy and services. 491 Consolidated Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                35.3 Countries Country ASSETS Chile Argentina Brazil Colombia Peru Eliminations Total 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ CURRENT ASSETS 7,206,153,017 1,878,994,993 335,086,963 520,217,733 790,909,682 848,758,549 372,444,839 574,295,812 246,261,307 287,163,111 (1,037,294,098) -177,931,310 7,913,561,710 3,931,498,888 Cash and cash equivalents Other current financial assets Other current non-financial assets Trade and other current receivables 842,075,831 989,320,583 46,181,049 25,917,276 91,204,686 197,723,645 156,927,518 357,750,546 48,774,260 134,033,441 16,360,472 8,518,962 694,177 - 48,170,095 52,870,583 3,037,702 38,065,858 - 41,022 16,052,871 2,763,894 4,151,319 80,268,243 115,566,129 9,724,564 12,267,413 9,191,334 27,060,380 729,821 578,408,890 216,550,824 416,026,626 536,725,492 446,392,339 179,304,792 147,531,981 154,034,146 93,735,123 786,492 -408,056 1,088,131,567 1,681,686,903 Current accounts receivable from related companies 72,105,375 134,750,382 24,224,813 28,097,713 19,580,577 22,359,268 2,063,025 748,922 1,292,410 3,256 (115,699,270) -167,518,201 3,566,930 18,441,340 Inventories Current tax assets - 43,677,878 40,147,347 41,937,394 900,446 934,466 21,381,902 16,506,890 32,628,202 30,463,526 28,523,295 90,281,411 4,524,859 4,087,405 14,060,143 12,912,119 5,336 1,424,202 340,955 1,867,385 1,185,163,344 1,704,745,491 68,262,446 99,455,403 101,989,057 175,098,112 95,057,897 133,520,154 47,454,588 110,572,522 Non-current assets or disposal groups held-for-sale or held for distribution to owners 6,246,317,201 17,984,016 - - - (922,381,320) -10,005,053 5,323,935,881 7,978,963 NON-CURRENT ASSETS 4,419,757,344 9,730,558,674 989,117,985 822,281,224 2,026,630,282 2,333,408,466 2,655,603,106 2,716,160,481 1,626,705,797 1,550,114,522 (4,182,221,833) -5,162,699,939 7,535,592,681 11,989,823,428 Other non-current financial assets Other non-current non-financial assets Trade and other non-current receivables Non-current accounts receivable from related companies - 33,090,868 21,751 72,882 488,876,852 496,463,986 616,296 1,177,618 13,305 16,166 489,528,204 530,821,520 9,809,121 236,772 3,927,495 4,232,688 60,707,204 69,746,584 3,380,076 3,644,175 (261,188) -54,039 77,562,708 77,806,180 - - 7,496,412 307,327,055 175,753,071 81,551,731 97,082,421 9,817,078 11,309,771 398,695,864 291,641,675 - 355,485 486,605 34,884,531 36,267,177 (34,884,531) -36,267,177 355,485 486,605 Investments accounted for using the equity method 4,392,452,234 6,324,305,426 33,278,110 42,815,909 - 29,497,710 32,798,603 78,272,852 95,911,225 (4,502,540,461) -6,422,197,553 30,960,445 73,633,610 Intangible assets other than goodwill Goodwill Property, plant and equipment Investment property Deferred tax assets - - - - 36,525,521 2,240,478 1,901,334 1,070,609 2,533,936 1,401,472 910,420,453 1,062,638,430 36,607,957 40,612,537 32,469,528 25,901,632 981,399,272 1,168,212,056 76,703,162 97,979,622 4,285,457 4,886,064 6,675,472 8,527,161 355,464,347 1,295,818,830 444,199,047 1,410,853,627 3,283,760,775 640,616,088 591,453,902 307,829,742 389,577,389 2,545,846,163 2,549,665,315 1,509,274,640 1,419,758,338 8,514,562 - - 17,495,989 34,387,860 620,058 3,530,759 65,656,607 83,652,857 25,552,369 72,066,398 5,003,566,633 8,234,215,719 - 8,514,562 109,325,023 193,637,874 - - - - - TOTAL ASSETS 11,625,910,361 11,609,553,667 1,324,204,948 1,342,498,957 2,817,539,964 3,182,167,015 3,028,047,945 3,290,456,293 1,872,967,104 1,837,277,633 (5,219,515,931) (5,340,631,249) 15,449,154,391 15,921,322,316 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - The eliminations column corresponds to transactions between companies in different lines of business and country, primarily purchases and sales of energy and services. 492 2015 Annual Report Enersis                                                                                                                                   35.3 Countries Cash and cash equivalents Other current financial assets Other current non-financial assets Trade and other current receivables Inventories Current tax assets Other non-current financial assets Other non-current non-financial assets Trade and other non-current receivables Intangible assets other than goodwill Goodwill Property, plant and equipment Investment property Deferred tax assets Country ASSETS Chile Argentina Brazil Colombia Peru Eliminations Total 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ CURRENT ASSETS 7,206,153,017 1,878,994,993 335,086,963 520,217,733 790,909,682 848,758,549 372,444,839 574,295,812 246,261,307 287,163,111 (1,037,294,098) -177,931,310 7,913,561,710 3,931,498,888 842,075,831 989,320,583 46,181,049 25,917,276 91,204,686 197,723,645 156,927,518 357,750,546 48,774,260 134,033,441 16,360,472 8,518,962 694,177 - 48,170,095 52,870,583 3,037,702 38,065,858 - - 41,022 16,052,871 2,763,894 4,151,319 80,268,243 115,566,129 9,724,564 12,267,413 9,191,334 27,060,380 - - - - - - 1,185,163,344 1,704,745,491 68,262,446 99,455,403 101,989,057 175,098,112 729,821 578,408,890 216,550,824 416,026,626 536,725,492 446,392,339 179,304,792 147,531,981 154,034,146 93,735,123 786,492 -408,056 1,088,131,567 1,681,686,903 Current accounts receivable from related companies 72,105,375 134,750,382 24,224,813 28,097,713 19,580,577 22,359,268 2,063,025 748,922 1,292,410 3,256 (115,699,270) -167,518,201 3,566,930 18,441,340 - 43,677,878 40,147,347 41,937,394 900,446 934,466 21,381,902 16,506,890 32,628,202 30,463,526 28,523,295 90,281,411 4,524,859 4,087,405 14,060,143 12,912,119 5,336 1,424,202 340,955 1,867,385 - - - - 95,057,897 133,520,154 47,454,588 110,572,522 Non-current assets or disposal groups held-for-sale or held for distribution to owners 6,246,317,201 17,984,016 - - - - - - - - (922,381,320) -10,005,053 5,323,935,881 7,978,963 NON-CURRENT ASSETS 4,419,757,344 9,730,558,674 989,117,985 822,281,224 2,026,630,282 2,333,408,466 2,655,603,106 2,716,160,481 1,626,705,797 1,550,114,522 (4,182,221,833) -5,162,699,939 7,535,592,681 11,989,823,428 33,090,868 21,751 72,882 488,876,852 496,463,986 616,296 1,177,618 13,305 16,166 - - 489,528,204 530,821,520 Non-current accounts receivable from related companies - 355,485 486,605 34,884,531 36,267,177 - - 9,809,121 236,772 3,927,495 4,232,688 60,707,204 69,746,584 3,380,076 3,644,175 7,496,412 307,327,055 175,753,071 81,551,731 97,082,421 9,817,078 11,309,771 - - - - - - (261,188) -54,039 77,562,708 77,806,180 - - 398,695,864 291,641,675 (34,884,531) -36,267,177 355,485 486,605 Investments accounted for using the equity method 4,392,452,234 6,324,305,426 33,278,110 42,815,909 - - 29,497,710 32,798,603 78,272,852 95,911,225 (4,502,540,461) -6,422,197,553 30,960,445 73,633,610 36,525,521 2,240,478 1,901,334 1,070,609 2,533,936 1,401,472 910,420,453 1,062,638,430 36,607,957 40,612,537 32,469,528 25,901,632 - - 981,399,272 1,168,212,056 76,703,162 97,979,622 4,285,457 4,886,064 6,675,472 8,527,161 355,464,347 1,295,818,830 444,199,047 1,410,853,627 3,283,760,775 640,616,088 591,453,902 307,829,742 389,577,389 2,545,846,163 2,549,665,315 1,509,274,640 1,419,758,338 8,514,562 - - - - - - 17,495,989 34,387,860 620,058 3,530,759 65,656,607 83,652,857 25,552,369 72,066,398 - - - - - - - - - - 5,003,566,633 8,234,215,719 - 8,514,562 109,325,023 193,637,874 - - - - - - - TOTAL ASSETS 11,625,910,361 11,609,553,667 1,324,204,948 1,342,498,957 2,817,539,964 3,182,167,015 3,028,047,945 3,290,456,293 1,872,967,104 1,837,277,633 (5,219,515,931) (5,340,631,249) 15,449,154,391 15,921,322,316 The eliminations column corresponds to transactions between companies in different lines of business and country, primarily purchases and sales of energy and services. 493 Consolidated Financial Statements                                                                                                                                  1,308,554 24,208,389 1,288,348 12,688,191 36,629,437 15,580,824 39,226,339 129,275,589 127,299,176 90,222,684 142,607,960 115,472,313 - - 78,629,281 - 1,945,652,102 5,488,147 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Country Chile Argentina Brazil Colombia Perú Eliminaciones Totales LIABILITIES AND EQUITY CURRENT LIABILITIES Other current financial liabilities Trade and other current payables 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 2,214,708,056 744,843,606 650,930,971 919,270,662 649,275,989 479,284,646 589,400,597 828,561,609 313,823,925 269,583,701 87,241,262 -46,722,240 4,505,380,800 3,194,821,984 251,988,261 150,748,390 30,883,517 36,046,855 136,422,798 78,874,557 170,601,821 92,779,423 97,977,111 63,356,454 - 687,873,508 421,805,679 30,630,264 490,927,954 524,765,510 775,438,014 438,614,827 340,379,343 258,880,100 428,369,239 149,516,849 167,957,943 50,416,657 85,804,457 1,452,824,207 2,288,876,950 Current accounts payable to related companies 37,738,690 10,417,853 23,671,742 28,081,812 50,826,174 30,274,223 30,878,126 198,528,161 8,587,452 8,905,270 (41,804,676) -132,526,697 109,897,508 143,680,622 Other current provisions Current tax liabilities Current provisions for employee benefits Other non-current non-financial liabilities Liabilities associated with groups of assets or disposal groups held for sale or distribution to owners 1,867,022,821 5,488,147 - - - 37,276,286 - - - - 39,521,899 - - - 3,595 11,627,110 30,169,043 33,345,118 2,144,014 3,335,096 77,759,932 31,449,522 17,222,592 10,465,838 27,324,425 38,357,866 41,441,159 6,836,964 19,959,622 2,213,038 49,992,270 64,747,073 3,890,484 3,317,372 NON-CURRENT LIABITIES 25,261,654 1,410,672,019 393,937,987 291,965,068 725,609,705 959,581,284 1,113,128,603 1,241,915,054 555,256,672 601,204,740 (59,229,410) -58,056,579 2,753,965,211 4,447,281,586 Other non-current financial liabilities 22,163,958 1,042,430,478 38,637,260 44,052,205 424,551,031 627,845,559 1,012,352,174 1,162,494,911 349,592,169 412,274,375 1,847,296,592 3,289,097,528 Trade and other non-current payables Non-current account payables to related companies Other long-current provisions Deferred tax liabilities - - - - 3,711,078 249,256,884 120,587,518 25,765,233 35,086,925 8,522,137 283,544,254 159,385,521 - 35,630,861 36,594,486 23,598,549 (59,229,410) -36,594,486 - - 27,969,934 10,544,604 8,468,074 132,216,036 152,802,156 36,538,802 4,100,860 4,548,842 3,902,817 255,156,048 46,358,947 31,236,466 15,701,628 18,454,634 - 169,844,040 173,514,336 Non-current provisions for employee benefits 3,097,696 56,333,817 13,509,431 12,825,808 103,777,228 122,729,879 64,237,627 75,319,283 2,648,492 2,721,625 Other non-current non-financial liabilities - 25,070,664 - 38,200,511 - 2,662,131 - 20,100,992 8,791,587 -21,462,093 20,100,992 53,262,800 183,848,284 197,243,841 231,904,615 478,361,484 187,270,474 269,930,412 EQUITY 9,385,940,651 9,454,038,042 279,335,990 131,263,227 1,442,654,270 1,743,301,085 1,325,518,745 1,219,979,630 1,003,886,507 966,489,192 (5,247,527,783) -5,235,852,430 8,189,808,380 8,279,218,746 Equity attributable to shareholders of Enersis Américas 9,385,940,651 9,454,038,042 279,335,990 131,263,227 1,442,654,270 1,743,301,085 1,325,518,745 1,219,979,630 1,003,886,507 966,489,192 (5,247,527,783) -5,235,852,430 6,026,149,285 6,201,976,047 Issued capital Retained earnings Share premium Other reserves 8,275,947,660 8,284,164,467 157,658,399 206,381,462 216,661,867 216,324,676 149,451,431 170,397,032 484,427,384 298,376,352 (3,479,698,755) -3,371,196,003 5,804,447,986 5,804,447,986 3,903,767,587 3,545,928,591 24,530,244 (151,386,397) 144,278,288 206,870,339 322,708,452 145,279,263 66,656,282 278,207,618 (1,081,279,330) -973,164,969 3,380,661,523 3,051,734,445 206,574,859 206,574,859 - - 535,555,881 684,112,119 2,981,182 3,398,995 49,641 590,505 (745,161,563) -894,676,478 - - (3,000,349,455) (2,582,629,875) 97,147,347 76,268,162 546,158,234 635,993,951 850,377,680 900,904,340 452,753,200 389,314,717 58,611,865 3,185,020 (3,158,960,224) (2,654,206,384) Non-controlling interests - - - - - - - - - - - - 2,163,659,095 2,077,242,699 Total Liabilities and Equity 11,625,910,361 11,609,553,667 1,324,204,948 1,342,498,957 2,817,539,964 3,182,167,015 3,028,047,945 3,290,456,293 1,872,967,104 1,837,277,633 (5,219,515,931) (5,340,631,249) 15,449,154,391 15,921,322,316 The eliminations column corresponds to transactions between companies in different lines of business and country, primarily purchases and sales of energy and services. 494 2015 Annual Report Enersis Country Chile Argentina Brazil Colombia Perú Eliminaciones Totales 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 2,214,708,056 744,843,606 650,930,971 919,270,662 649,275,989 479,284,646 589,400,597 828,561,609 313,823,925 269,583,701 87,241,262 -46,722,240 4,505,380,800 3,194,821,984 251,988,261 150,748,390 30,883,517 36,046,855 136,422,798 78,874,557 170,601,821 92,779,423 97,977,111 63,356,454 - - 687,873,508 421,805,679 30,630,264 490,927,954 524,765,510 775,438,014 438,614,827 340,379,343 258,880,100 428,369,239 149,516,849 167,957,943 50,416,657 85,804,457 1,452,824,207 2,288,876,950 Current accounts payable to related companies 37,738,690 10,417,853 23,671,742 28,081,812 50,826,174 30,274,223 30,878,126 198,528,161 8,587,452 8,905,270 (41,804,676) -132,526,697 109,897,508 143,680,622 3,595 11,627,110 30,169,043 33,345,118 2,144,014 3,335,096 77,759,932 31,449,522 17,222,592 10,465,838 27,324,425 38,357,866 41,441,159 6,836,964 19,959,622 2,213,038 49,992,270 64,747,073 3,890,484 3,317,372 - 37,276,286 39,521,899 1,308,554 24,208,389 1,288,348 12,688,191 36,629,437 15,580,824 - - - - - - - - - - - - - - 127,299,176 90,222,684 142,607,960 115,472,313 - - 39,226,339 129,275,589 LIABILITIES AND EQUITY CURRENT LIABILITIES Other current financial liabilities Trade and other current payables Other current provisions Current tax liabilities Current provisions for employee benefits Other non-current non-financial liabilities Liabilities associated with groups of assets or disposal groups held for sale or distribution to owners 1,867,022,821 5,488,147 - - - - - 78,629,281 - 1,945,652,102 5,488,147 NON-CURRENT LIABITIES 25,261,654 1,410,672,019 393,937,987 291,965,068 725,609,705 959,581,284 1,113,128,603 1,241,915,054 555,256,672 601,204,740 (59,229,410) -58,056,579 2,753,965,211 4,447,281,586 Other non-current financial liabilities 22,163,958 1,042,430,478 38,637,260 44,052,205 424,551,031 627,845,559 1,012,352,174 1,162,494,911 349,592,169 412,274,375 Trade and other non-current payables 3,711,078 249,256,884 120,587,518 25,765,233 35,086,925 Non-current account payables to related companies - 35,630,861 36,594,486 23,598,549 - - - - - 8,522,137 - - - Other long-current provisions Deferred tax liabilities 27,969,934 10,544,604 8,468,074 132,216,036 152,802,156 36,538,802 4,100,860 4,548,842 3,902,817 255,156,048 46,358,947 31,236,466 15,701,628 18,454,634 - - 169,844,040 173,514,336 Non-current provisions for employee benefits 3,097,696 56,333,817 13,509,431 12,825,808 103,777,228 122,729,879 64,237,627 75,319,283 2,648,492 2,721,625 Other non-current non-financial liabilities 25,070,664 - 38,200,511 - 2,662,131 - - 20,100,992 8,791,587 - - - - 1,847,296,592 3,289,097,528 283,544,254 159,385,521 (59,229,410) -36,594,486 - - - - - - - - - 183,848,284 197,243,841 231,904,615 478,361,484 187,270,474 269,930,412 -21,462,093 20,100,992 53,262,800 - - - - - - - EQUITY 9,385,940,651 9,454,038,042 279,335,990 131,263,227 1,442,654,270 1,743,301,085 1,325,518,745 1,219,979,630 1,003,886,507 966,489,192 (5,247,527,783) -5,235,852,430 8,189,808,380 8,279,218,746 Equity attributable to shareholders of Enersis Américas 9,385,940,651 9,454,038,042 279,335,990 131,263,227 1,442,654,270 1,743,301,085 1,325,518,745 1,219,979,630 1,003,886,507 966,489,192 (5,247,527,783) -5,235,852,430 6,026,149,285 6,201,976,047 Issued capital Retained earnings Share premium Other reserves 8,275,947,660 8,284,164,467 157,658,399 206,381,462 216,661,867 216,324,676 149,451,431 170,397,032 484,427,384 298,376,352 (3,479,698,755) -3,371,196,003 5,804,447,986 5,804,447,986 3,903,767,587 3,545,928,591 24,530,244 (151,386,397) 144,278,288 206,870,339 322,708,452 145,279,263 66,656,282 278,207,618 (1,081,279,330) -973,164,969 3,380,661,523 3,051,734,445 206,574,859 206,574,859 535,555,881 684,112,119 2,981,182 3,398,995 49,641 590,505 (745,161,563) -894,676,478 - - (3,000,349,455) (2,582,629,875) 97,147,347 76,268,162 546,158,234 635,993,951 850,377,680 900,904,340 452,753,200 389,314,717 58,611,865 3,185,020 (3,158,960,224) (2,654,206,384) Non-controlling interests - - - - - - - - - - 2,163,659,095 2,077,242,699 Total Liabilities and Equity 11,625,910,361 11,609,553,667 1,324,204,948 1,342,498,957 2,817,539,964 3,182,167,015 3,028,047,945 3,290,456,293 1,872,967,104 1,837,277,633 (5,219,515,931) (5,340,631,249) 15,449,154,391 15,921,322,316 - - - - - - - - - The eliminations column corresponds to transactions between companies in different lines of business and country, primarily purchases and sales of energy and services. 495 Consolidated Financial Statements - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 28,286,939 (213,316,229) (118,899,075) 294,770,272 124,314,454 170,455,818 251,121,762 86,576,973 164,544,789 246,615,814 98,281,675 148,334,139 (38,921,033) (179,258,559) (167,275,748) (33,061,726) (172,288,757) (226,963,846) (30,027,336) (149,082,277) (146,862,689) (9,266,040) (13,630,068) (11,007,801) 3,332,971 2,560,023 (6,566,225) - (6,566,225) 876,554 707,468 169,086 979,875 4,642,268 768,433 3,873,835 18,603,031 13,228,981 5,374,050 (78,795,617) (6,395,703) (99,009,223) - (1,044,391) 1,520,289 (2,564,680) 120,697 - 120,697 18,522,711 11,698,193 6,824,518 (68,989,288) (6,801,893) (71,666,970) - 375,014 843,353 (468,339) 932,917 381,011 - 381,011 4,305,859 1,976,131 2,329,728 (31,497,335) (6,137,221) (17,586,333) (7,773,781) 3,921,832 2,132,408 1,789,424 (23,435,746) (6,589,317) (17,194,239) 347,810 3,522,291 1,670,958 1,851,333 (25,479,239) (5,430,614) (14,116,129) (5,932,496) - - - - - - 746,944 93,547 723,159 746,944 93,547 723,159 752,621 2,561,038 10,037,527 6,394,711 3,642,816 (78,846,539) (8,596,624) (98,156,546) 1,460,312 3,433,799 (1,973,487) (238,818) (238,818) - - - - - - - Country STATEMENT OF COMPREHENSIVE INCOME REVENUE Revenue Energy sales Other sales Other services rendered Other operating income RAW MATERIALS AND CONSUMABLES USED Energy purchases Fuel consumption Transportation expense Other miscellaneous supplies and services 12-31-2015 ThCh$ 4,346,811 4,342,565 - - 4,342,565 4,246 - - - - - Chile 12-31-2014 5,160,988 5,160,988 - - 5,160,988 - - - - - - 12-31-2013 ThCh$ 2,900,505 2,900,505 - - 2,900,505 - 12-31-2015 ThCh$ 817,366,617 435,789,546 379,092,257 460,133 56,237,156 381,577,071 Argentina 12-31-2014 ThCh$ 538,871,174 346,911,584 280,176,215 523,507 66,211,862 191,959,590 12-31-2013 ThCh$ 702,356,329 406,515,531 361,705,469 361,681 44,448,381 295,840,798 12-31-2015 ThCh$ 2,013,355,544 1,782,667,222 1,626,946,066 16,073,260 139,647,896 230,688,322 Brazil 12-31-2014 ThCh$ 2,266,459,965 2,081,466,805 1,923,078,033 16,820,481 141,568,291 184,993,160 12-31-2013 ThCh$ 1,867,480,092 1,695,610,134 1,553,473,683 6,569,786 135,566,665 171,869,958 12-31-2015 ThCh$ Colombia 12-31-2014 ThCh$ 12-31-2013 ThCh$ 1,568,088,010 1,601,692,843 1,312,563,123 1,551,589,289 1,590,209,560 1,270,600,838 1,415,825,122 1,445,643,276 1,176,055,779 7,508,473 128,255,694 16,498,721 492,002 144,074,282 11,483,283 3,280,645 91,264,414 41,962,285 12-31-2015 ThCh$ 902,656,878 897,613,346 802,518,254 16,606,185 78,488,907 5,043,532 Peru 12-31-2014 ThCh$ 796,341,810 784,863,792 701,058,885 16,384,949 67,419,958 11,478,018 12-31-2013 ThCh$ 643,503,677 604,015,741 560,310,262 8,823,805 34,881,674 39,487,936 12-31-2015 ThCh$ (4,374,282) (4,356,658) (4,356,658) (17,624) Eliminations 12-31-2014 ThCh$ (2,156,992) (2,156,992) (122,447) (2,034,545) 12-31-2013 ThCh$ (655,857) (647,397) (201,948) (445,449) (8,460) 12-31-2015 ThCh$ Total 12-31-2014 ThCh$ 12-31-2013 ThCh$ 5,301,439,578 5,206,369,788 4,528,147,869 4,667,645,310 4,806,455,737 3,978,995,352 4,224,381,699 4,349,833,962 3,651,343,245 40,648,051 402,615,560 633,794,268 34,220,939 422,400,836 399,914,051 19,035,917 308,616,190 549,152,517 - - - - - (207,711,417) (157,071,520) (39,487,378) (1,603,737) (9,548,782) (209,270,232) (165,988,305) (31,350,429) (2,887,611) (9,043,887) (225,811,105) (186,778,094) (25,889,830) (3,021,027) (10,122,154) (1,385,921,253) (992,325,912) (61,626,347) (74,851,323) (257,117,671) (1,405,383,543) (1,041,607,105) (58,409,123) (93,644,111) (211,723,204) (1,082,324,727) (616,825,105) (51,277,737) (72,787,402) (341,434,483) (727,204,325) (467,945,400) (62,987,536) (122,810,084) (73,461,305) (634,092,249) (389,379,482) (33,015,871) (130,555,197) (81,141,699) (489,477,523) (282,064,565) (34,870,502) (114,719,080) (57,823,376) (456,364,517) (271,677,147) (94,012,661) (43,444,677) (47,230,032) (382,923,412) (230,083,919) (82,758,971) (35,042,438) (35,038,084) (292,653,947) (170,440,992) (62,465,952) (22,369,037) (37,377,966) 3,103,553 3,056,025 3,962,147 (1,885,916,426) (1,824,002,786) (1,252,146,609) (2,777,201,512) (2,631,669,436) (2,090,267,302) (3,103,553) (3,056,025) (3,962,147) (258,113,922) (245,813,374) (387,357,790) (205,534,394) (265,185,382) (336,946,874) (174,504,021) (216,858,693) (446,757,979) CONTRIBUTION MARGIN 4,346,811 5,160,988 2,900,505 609,655,200 329,600,942 476,545,224 627,434,291 861,076,422 785,155,365 840,883,685 967,600,594 823,085,600 446,292,361 413,418,398 350,849,730 (4,374,282) (2,156,992) (655,857) 2,524,238,066 2,574,700,352 2,437,880,567 Other works performed by the entity and capitalized Employee benefits expense Other expenses - - - 38,651,134 27,871,088 21,102,202 10,165,042 12,046,728 13,877,942 9,792,909 10,209,703 8,810,875 4,859,848 3,969,512 3,343,451 3,632,336 1,673,387 67,101,269 55,770,418 47,134,470 (6,198,154) (8,580,775) (4,663,987) (904,591) (3,678,384) (1,203,116) (282,962,098) (160,072,998) (182,617,639) (150,390,844) (154,686,547) (138,909,307) (99,652,482) (176,649,576) (107,989,443) (169,097,432) (100,646,528) (147,251,809) (57,583,893) (85,846,339) (55,772,427) (91,510,241) (51,593,413) (75,777,792) (41,301,520) (58,121,007) (38,624,977) (52,309,761) (34,963,324) (43,261,744) 741,946 483,605 655,857 (487,698,147) (488,528,749) (389,668,473) (463,729,264) (345,568,196) (405,747,911) GROSS OPERATING RESULTS (10,432,118) (407,590) (1,980,995) 205,271,238 24,463,547 204,051,572 361,297,275 596,036,275 551,134,970 707,246,362 830,527,629 704,525,270 351,729,682 326,453,172 275,968,113 1,615,112,439 1,777,073,033 1,733,698,930 Depreciation and amortization expense Impairment losses (reversal of impairment losses) recognized in profit or loss - - - - - - (48,164,380) (34,457,311) (39,649,323) (93,577,654) (126,219,710) (111,980,732) (98,604,705) (115,830,740) (99,481,692) (80,195,458) (74,234,989) (64,854,394) (2,289,187) (2,641,255) (7,740,546) (31,029,774) (29,563,651) (51,248,898) (189,779) (3,189,097) (160,633) (6,303,016) (2,935,939) (7,514,899) (320,542,197) (350,742,750) (315,966,141) (39,811,756) (38,329,942) (66,664,976) OPERATING INCOME (10,432,118) -407,590 -1,980,995 154,817,671 -12,635,019 156,661,703 236,689,847 440,252,914 387,905,340 608,451,878 711,507,792 604,882,945 265,231,208 249,282,244 203,598,820 - - 1,254,758,486 1,388,000,341 1,351,067,813 FINANCIAL RESULTS Financial income Cash and cash equivalents Other Financial income Financial costs Bank borrowings Secured and unsecured obligations Other Profits (losses) from indexed assets and liabilities Foreign currency exchange differences Positive Negative Share of profit of associates accounted for using the equity method Other gains (losses) Gain (loss) from other investments Gain (loss) from the sale of property, plant and equipment (1,613,675) 23,085,427 23,058,503 26,924 (23,676,545) (974) (14,045,548) (9,630,023) 2,287,603 37,359,473 27,551,155 9,808,318 (22,139,600) - (12,984,782) (9,154,818) 6,103,492 43,272,796 42,998,291 274,505 (39,818,432) - (24,441,840) (15,376,592) 130,614,694 141,071,582 76,904,478 64,167,104 (111,418,295) (6,430,781) (104,987,514) (39,636,349) 112,698,022 4,063,184 108,634,838 (90,124,247) (11,090,608) - (79,033,639) (94,354,565) 37,262,480 4,491,672 32,770,808 (73,869,756) (13,824,240) - (60,045,516) 708,538 118,746,948 15,980,631 102,766,317 (142,493,697) (17,755,433) (49,470,132) (75,268,132) (127,456,000) 88,275,167 39,601,245 48,673,922 (227,554,883) (8,986,098) (43,100,513) (175,468,272) 34,677,521 146,393,325 37,422,561 108,970,764 (120,173,373) (3,970,589) (38,857,338) (77,345,446) (9,266,040) (13,630,068) (11,007,801) - - - - - (67,348,700) (61,236,977) (50,091,563) (34,073,918) (23,920,963) (26,555,488) (2,477,071) 36,646,457 (9,735,763) 11,321,528 (2,357,789) (2,477,071) 2,477,071 (9,735,763) 9,735,764 (2,357,789) 2,357,786 (385,455,340) (432,314,329) (325,972,302) 27,906,631 26,609,309 9,479,575 2,477,071 9,735,764 2,357,786 8,243,483 61,064,473 (52,820,990) 697,798 73,497,873 (72,800,075) 13,656,929 61,012,638 (47,355,709) 100,961,407 193,605,073 (92,643,666) (62,210,124) 17,360,161 (79,570,285) (57,747,289) 19,539,712 (77,287,001) (132,598) (35,735) - - - - - - 4,725 42,761 42,761 2,712,948 (315,656) - - (315,656) 34,720 662,310 707,468 (45,158) 42,233 733,526 725,672 7,854 (6,758,695) 24,455,287 51,717,523 (27,262,236) - (6,758,695) - 11,823,716 16,882,667 (5,058,951) - - - - 8,457,569 14,637,824 (6,180,255) - 2,761,811 - 2,761,811 (6,882,442) 3,435,721 (10,318,163) (4,407,049) 3,950,172 (8,357,221) (4,598,540) 4,238,355 (8,836,895) (38,247,318) 38,247,318 36,646,456 (11,842,150) 48,488,606 11,321,531 (13,833,193) 128,238,047 275,009,271 (18,493,594) 101,369,012 (28,534,786) 86,438,689 25,154,724 (146,771,224) (119,862,606) (114,973,475) Income before tax (12,178,391) 1,844,278 4,169,983 287,829,657 (51,574,338) 63,082,897 230,639,690 312,796,914 425,344,672 541,616,981 652,952,550 556,105,310 231,904,234 225,454,828 177,766,491 36,646,457 11,321,528 1,279,812,171 1,178,120,689 1,237,790,881 Income tax (93,756,951) (61,135,766) (91,027,164) (79,403,591) (25,322,535) (19,375,904) (73,751,149) (83,386,302) (98,554,883) (205,841,587) (208,404,127) (181,812,587) (70,909,934) (52,343,302) (51,684,805) (523,663,212) (430,592,032) (442,455,343) Net income from continuing operations Net income from discontinued operations Net Income (105,935,342) 388,320,526 282,385,184 (59,291,488) 281,941,071 222,649,583 (86,857,181) 318,065,208 231,208,027 208,426,066 - 208,426,066 (76,896,873) - (76,896,873) 43,706,993 43,706,993 156,888,541 - 156,888,541 229,410,612 326,789,789 335,775,394 444,548,423 374,292,723 160,994,300 173,111,526 126,081,686 36,646,457 11,321,528 756,148,959 388,320,526 747,528,657 281,941,071 795,335,538 318,065,208 229,410,612 326,789,789 335,775,394 444,548,423 374,292,723 160,994,300 173,111,526 126,081,686 36,646,457 11,321,528 1,144,469,485 1,029,469,728 1,113,400,746 STATEMENT OF CASH FLOWS Country 12-31-2015 ThCh$ Chile 12-31-2014 12-31-2013 ThCh$ 12-31-2015 ThCh$ Argentina 12-31-2014 ThCh$ 12-31-2013 ThCh$ 12-31-2015 ThCh$ Brazil 12-31-2014 ThCh$ 12-31-2013 ThCh$ 12-31-2015 ThCh$ Colombia 12-31-2014 ThCh$ 12-31-2013 ThCh$ 12-31-2015 ThCh$ Peru 12-31-2014 ThCh$ 12-31-2013 ThCh$ 12-31-2015 ThCh$ Eliminations 12-31-2014 ThCh$ 12-31-2013 ThCh$ 12-31-2015 ThCh$ Total 12-31-2014 12-31-2013 Net cash flows from (used in) operating activities Net cash flows from (used in) investing activities Net cash flows from (used in) financing activities 549,960,852 203,323,918 430,172,279 349,787,261 267,157,901 171,169,106 266,234,483 412,841,873 448,374,315 489,849,453 582,492,679 478,582,963 276,916,200 239,070,342 175,327,834 (9,297,647) (6,848,719) (2,650,853) 1,923,450,602 1,698,037,994 1,700,975,644 40,279,970 956,586,408 (283,356,920) (287,437,006) (236,905,557) (164,720,608) (266,497,586) (142,166,536) (185,875,967) (271,946,454) (202,123,930) (229,211,864) (156,966,672) (75,195,327) (63,697,550) (272,731,300) (599,882,048) (297,024,180) (1,215,299,048) (299,686,990) (1,223,887,089) (603,778,788) (1,096,385,941) 565,999,553 (28,362,528) (28,140,190) (4,113,277) (78,409,908) (326,502,619) (199,139,356) (425,470,875) (320,548,584) (220,291,845) (206,144,926) (118,613,377) (105,415,120) 281,952,646 606,731,048 299,725,401 (1,060,214,379) (1,283,459,663) 336,765,356 The eliminations column corresponds to transactions between companies in different lines of business and country, primarily purchases and sales of energy and services. 496 2015 Annual Report Enersis                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Argentina Brazil Chile 5,160,988 5,160,988 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 ThCh$ 4,346,811 4,342,565 4,342,565 4,246 ThCh$ 2,900,505 2,900,505 ThCh$ 817,366,617 435,789,546 379,092,257 ThCh$ 538,871,174 346,911,584 ThCh$ ThCh$ ThCh$ ThCh$ 702,356,329 2,013,355,544 2,266,459,965 1,867,480,092 406,515,531 1,782,667,222 2,081,466,805 1,695,610,134 280,176,215 361,705,469 1,626,946,066 1,923,078,033 1,553,473,683 5,160,988 2,900,505 56,237,156 66,211,862 44,448,381 460,133 523,507 361,681 381,577,071 191,959,590 295,840,798 230,688,322 16,073,260 139,647,896 16,820,481 141,568,291 184,993,160 6,569,786 135,566,665 171,869,958 (207,711,417) (209,270,232) (225,811,105) (1,385,921,253) (1,405,383,543) (1,082,324,727) (157,071,520) (165,988,305) (186,778,094) (992,325,912) (1,041,607,105) (616,825,105) (39,487,378) (31,350,429) (25,889,830) (1,603,737) (9,548,782) (2,887,611) (9,043,887) (3,021,027) (10,122,154) (61,626,347) (74,851,323) (58,409,123) (93,644,111) (51,277,737) (72,787,402) (257,117,671) (211,723,204) (341,434,483) 12-31-2015 ThCh$ 1,568,088,010 1,551,589,289 1,415,825,122 7,508,473 128,255,694 16,498,721 (727,204,325) (467,945,400) (62,987,536) (122,810,084) (73,461,305) Colombia 12-31-2014 ThCh$ 1,601,692,843 1,590,209,560 1,445,643,276 492,002 144,074,282 11,483,283 (634,092,249) (389,379,482) (33,015,871) (130,555,197) (81,141,699) 12-31-2013 ThCh$ 1,312,563,123 1,270,600,838 1,176,055,779 3,280,645 91,264,414 41,962,285 (489,477,523) (282,064,565) (34,870,502) (114,719,080) (57,823,376) 12-31-2015 ThCh$ 902,656,878 897,613,346 802,518,254 16,606,185 78,488,907 5,043,532 Peru 12-31-2014 ThCh$ 796,341,810 784,863,792 701,058,885 16,384,949 67,419,958 11,478,018 12-31-2013 ThCh$ 643,503,677 604,015,741 560,310,262 8,823,805 34,881,674 39,487,936 (456,364,517) (271,677,147) (94,012,661) (43,444,677) (47,230,032) (382,923,412) (230,083,919) (82,758,971) (35,042,438) (35,038,084) (292,653,947) (170,440,992) (62,465,952) (22,369,037) (37,377,966) 12-31-2015 ThCh$ (4,374,282) (4,356,658) - - (4,356,658) (17,624) - 3,103,553 - (3,103,553) - Eliminations 12-31-2014 ThCh$ (2,156,992) (2,156,992) (122,447) - (2,034,545) - - 3,056,025 - (3,056,025) - 12-31-2013 ThCh$ (655,857) (647,397) (201,948) - (445,449) (8,460) - 3,962,147 - (3,962,147) - 12-31-2015 ThCh$ 5,301,439,578 4,667,645,310 4,224,381,699 40,648,051 402,615,560 633,794,268 Total 12-31-2014 ThCh$ 5,206,369,788 4,806,455,737 4,349,833,962 34,220,939 422,400,836 399,914,051 12-31-2013 ThCh$ 4,528,147,869 3,978,995,352 3,651,343,245 19,035,917 308,616,190 549,152,517 (2,777,201,512) (1,885,916,426) (258,113,922) (245,813,374) (387,357,790) (2,631,669,436) (1,824,002,786) (205,534,394) (265,185,382) (336,946,874) (2,090,267,302) (1,252,146,609) (174,504,021) (216,858,693) (446,757,979) CONTRIBUTION MARGIN 4,346,811 5,160,988 2,900,505 609,655,200 329,600,942 476,545,224 627,434,291 861,076,422 785,155,365 840,883,685 967,600,594 823,085,600 446,292,361 413,418,398 350,849,730 (4,374,282) (2,156,992) (655,857) 2,524,238,066 2,574,700,352 2,437,880,567 (6,198,154) (8,580,775) (4,663,987) (904,591) (3,678,384) (282,962,098) (182,617,639) (154,686,547) (99,652,482) (107,989,443) (100,646,528) (1,203,116) (160,072,998) (150,390,844) (138,909,307) (176,649,576) (169,097,432) (147,251,809) (57,583,893) (85,846,339) (55,772,427) (91,510,241) (51,593,413) (75,777,792) (41,301,520) (58,121,007) (38,624,977) (52,309,761) (34,963,324) (43,261,744) - 741,946 - 483,605 - 655,857 (487,698,147) (488,528,749) (389,668,473) (463,729,264) (345,568,196) (405,747,911) - 38,651,134 27,871,088 21,102,202 10,165,042 12,046,728 13,877,942 9,792,909 10,209,703 8,810,875 4,859,848 3,969,512 3,343,451 3,632,336 1,673,387 - 67,101,269 55,770,418 47,134,470 GROSS OPERATING RESULTS (10,432,118) (407,590) (1,980,995) 205,271,238 24,463,547 204,051,572 361,297,275 596,036,275 551,134,970 707,246,362 830,527,629 704,525,270 351,729,682 326,453,172 275,968,113 (48,164,380) (34,457,311) (39,649,323) (93,577,654) (126,219,710) (111,980,732) (98,604,705) (115,830,740) (99,481,692) (80,195,458) (74,234,989) (64,854,394) (2,289,187) (2,641,255) (7,740,546) (31,029,774) (29,563,651) (51,248,898) (189,779) (3,189,097) (160,633) (6,303,016) (2,935,939) (7,514,899) OPERATING INCOME (10,432,118) -407,590 -1,980,995 154,817,671 -12,635,019 156,661,703 236,689,847 440,252,914 387,905,340 608,451,878 711,507,792 604,882,945 265,231,208 249,282,244 203,598,820 - - - - - - - - - - 1,615,112,439 1,777,073,033 1,733,698,930 (320,542,197) (350,742,750) (315,966,141) (39,811,756) (38,329,942) (66,664,976) - 1,254,758,486 1,388,000,341 1,351,067,813 Country STATEMENT OF COMPREHENSIVE INCOME REVENUE Revenue Energy sales Other sales Other services rendered Other operating income Energy purchases Fuel consumption Transportation expense RAW MATERIALS AND CONSUMABLES USED Other miscellaneous supplies and services Other works performed by the entity and capitalized Employee benefits expense Other expenses Depreciation and amortization expense Impairment losses (reversal of impairment losses) recognized in profit or loss FINANCIAL RESULTS Financial income Cash and cash equivalents Other Financial income Financial costs Bank borrowings Secured and unsecured obligations Profits (losses) from indexed assets and Foreign currency exchange differences Other liabilities Positive Negative Share of profit of associates accounted for using the equity method Other gains (losses) Gain (loss) from other investments Gain (loss) from the sale of property, plant and equipment - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (1,613,675) 23,085,427 23,058,503 26,924 (974) (14,045,548) (9,630,023) 2,287,603 37,359,473 27,551,155 9,808,318 6,103,492 130,614,694 (39,636,349) (94,354,565) 708,538 (127,456,000) 141,071,582 112,698,022 43,272,796 42,998,291 274,505 76,904,478 64,167,104 37,262,480 4,491,672 32,770,808 118,746,948 15,980,631 102,766,317 88,275,167 39,601,245 48,673,922 (23,676,545) (22,139,600) (39,818,432) (111,418,295) (73,869,756) (142,493,697) (227,554,883) (120,173,373) (12,984,782) (9,154,818) (24,441,840) (15,376,592) (9,266,040) (13,630,068) (11,007,801) - (6,430,781) (13,824,240) (17,755,433) (49,470,132) (8,986,098) (43,100,513) (104,987,514) (79,033,639) (60,045,516) (75,268,132) (175,468,272) 8,243,483 61,064,473 697,798 73,497,873 13,656,929 61,012,638 100,961,407 (62,210,124) (57,747,289) 193,605,073 17,360,161 (52,820,990) (72,800,075) (47,355,709) (92,643,666) (79,570,285) 24,455,287 51,717,523 (27,262,236) 11,823,716 16,882,667 (5,058,951) 4,063,184 108,634,838 (90,124,247) (11,090,608) (132,598) (35,735) 4,725 42,761 42,761 2,712,948 (315,656) 34,720 662,310 707,468 (45,158) - (315,656) 7,854 (6,758,695) (6,758,695) 34,677,521 146,393,325 37,422,561 108,970,764 (3,970,589) (38,857,338) (77,345,446) 8,457,569 14,637,824 (6,180,255) - - 2,761,811 2,761,811 - - - - - - - 19,539,712 (77,287,001) 42,233 733,526 725,672 - - - - - - - - - - (34,073,918) 4,305,859 1,976,131 2,329,728 (31,497,335) (6,137,221) (17,586,333) (7,773,781) (23,920,963) 3,921,832 2,132,408 1,789,424 (23,435,746) (6,589,317) (17,194,239) 347,810 (26,555,488) 3,522,291 1,670,958 1,851,333 (25,479,239) (5,430,614) (14,116,129) (5,932,496) - (2,477,071) 36,646,457 (9,735,763) 11,321,528 (2,357,789) (2,477,071) 2,477,071 (9,735,763) 9,735,764 (2,357,789) 2,357,786 2,477,071 9,735,764 2,357,786 28,286,939 294,770,272 124,314,454 170,455,818 (385,455,340) (38,921,033) (179,258,559) (167,275,748) (213,316,229) 251,121,762 86,576,973 164,544,789 (432,314,329) (33,061,726) (172,288,757) (226,963,846) (118,899,075) 246,615,814 98,281,675 148,334,139 (325,972,302) (30,027,336) (149,082,277) (146,862,689) - - - - - (9,266,040) (13,630,068) (11,007,801) (6,882,442) 3,435,721 (10,318,163) (4,407,049) 3,950,172 (8,357,221) (4,598,540) 4,238,355 (8,836,895) - (38,247,318) 38,247,318 36,646,456 (11,842,150) 48,488,606 11,321,531 (13,833,193) 25,154,724 128,238,047 275,009,271 (146,771,224) (18,493,594) 101,369,012 (119,862,606) (28,534,786) 86,438,689 (114,973,475) Income before tax (12,178,391) 1,844,278 4,169,983 287,829,657 (51,574,338) 63,082,897 230,639,690 312,796,914 425,344,672 541,616,981 652,952,550 556,105,310 231,904,234 225,454,828 177,766,491 Income tax (93,756,951) (61,135,766) (91,027,164) (79,403,591) (25,322,535) (19,375,904) (73,751,149) (83,386,302) (98,554,883) (205,841,587) (208,404,127) (181,812,587) (70,909,934) (52,343,302) (51,684,805) Net income from continuing operations (105,935,342) (59,291,488) (86,857,181) 208,426,066 (76,896,873) 43,706,993 156,888,541 229,410,612 326,789,789 Net income from discontinued operations 281,941,071 318,065,208 388,320,526 282,385,184 Net Income 222,649,583 231,208,027 208,426,066 (76,896,873) 43,706,993 156,888,541 229,410,612 326,789,789 335,775,394 - 335,775,394 444,548,423 374,292,723 444,548,423 374,292,723 160,994,300 - 160,994,300 173,111,526 126,081,686 173,111,526 126,081,686 - - - - - - - - - - - - - - - 3,332,971 2,560,023 (6,566,225) - (6,566,225) 876,554 707,468 169,086 979,875 4,642,268 768,433 3,873,835 36,646,457 11,321,528 1,279,812,171 1,178,120,689 1,237,790,881 - (523,663,212) (430,592,032) (442,455,343) 36,646,457 - 36,646,457 11,321,528 11,321,528 756,148,959 388,320,526 1,144,469,485 747,528,657 281,941,071 1,029,469,728 795,335,538 318,065,208 1,113,400,746 (67,348,700) 10,037,527 6,394,711 3,642,816 (78,846,539) (8,596,624) (98,156,546) 27,906,631 (61,236,977) 18,603,031 13,228,981 5,374,050 (78,795,617) (6,395,703) (99,009,223) 26,609,309 - - 1,460,312 3,433,799 (1,973,487) (1,044,391) 1,520,289 (2,564,680) 752,621 2,561,038 (238,818) - (238,818) 120,697 - 120,697 (50,091,563) 18,522,711 11,698,193 6,824,518 (68,989,288) (6,801,893) (71,666,970) 9,479,575 - 375,014 843,353 (468,339) 932,917 381,011 - 381,011 - 746,944 - 746,944 - 93,547 - 93,547 - 723,159 - 723,159 STATEMENT OF CASH FLOWS 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Country Chile Argentina Brazil 12-31-2015 ThCh$ Colombia 12-31-2014 ThCh$ 12-31-2013 ThCh$ 12-31-2015 ThCh$ Peru 12-31-2014 ThCh$ 12-31-2013 ThCh$ 12-31-2015 ThCh$ Eliminations 12-31-2014 ThCh$ 12-31-2013 ThCh$ 12-31-2015 ThCh$ Total 12-31-2014 12-31-2013 Net cash flows from (used in) operating Net cash flows from (used in) investing Net cash flows from (used in) financing activities activities activities 549,960,852 203,323,918 430,172,279 349,787,261 267,157,901 171,169,106 266,234,483 412,841,873 448,374,315 489,849,453 582,492,679 478,582,963 276,916,200 239,070,342 175,327,834 (9,297,647) (6,848,719) (2,650,853) 1,923,450,602 1,698,037,994 1,700,975,644 40,279,970 956,586,408 (283,356,920) (287,437,006) (236,905,557) (164,720,608) (266,497,586) (142,166,536) (185,875,967) (271,946,454) (202,123,930) (229,211,864) (156,966,672) (75,195,327) (63,697,550) (272,731,300) (599,882,048) (297,024,180) (1,215,299,048) (299,686,990) (1,223,887,089) (603,778,788) (1,096,385,941) 565,999,553 (28,362,528) (28,140,190) (4,113,277) (78,409,908) (326,502,619) (199,139,356) (425,470,875) (320,548,584) (220,291,845) (206,144,926) (118,613,377) (105,415,120) 281,952,646 606,731,048 299,725,401 (1,060,214,379) (1,283,459,663) 336,765,356 The eliminations column corresponds to transactions between companies in different lines of business and country, primarily purchases and sales of energy and services. 497 Consolidated Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          35.4 Generation and Transmission, and Distribution by Country a) Generation and Transmission Line of business Country ASSETS Chile Argentina Brazil Colombia Peru Eliminations Total 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Generation and Transmission CURRENT ASSETS  5,216,028,617 587,911,081 143,791,564 111,345,580 109,584,185 179,310,128 172,957,080 329,704,908 172,786,358 164,347,787 (1,840,838,256) -114,094,932 3,974,309,548 1,258,524,552 Cash and cash equivalents Other current financial assets Other current non-financial assets Trade and other current receivables 13,726,062 2,649,187 47 50,627,592 4,389,709 10,766,653 15,361 317,283,266 Current accounts receivable from related companies 28,482,912 113,265,863 Inventories Current tax assets - - 36,871,184 44,701,761 21,513,878 20,268,881 - 1,458,900 91,879,708 24,188,529 2,707,246 2,043,303 - 2,909,678 55,648,584 28,040,438 2,268,098 2,209,901 Non-current assets or disposal groups held for sale or held for distribution to owners 5,171,155,048 10,005,053 - - NON-CURRENT ASSETS 34,135 4,509,737,795 514,526,563 376,359,459 377,376,503 465,167,544 1,807,828,818 1,787,224,362 903,328,613 918,279,644 467,827,511 -1,242,631,650 4,070,922,143 6,814,137,154 22,236,032 5,824,350 11,386,388 27,816,899 40,682,826 19,388 76,039,740 26,000,508 15,508,149 35,732,810 23,607,823 24,762 1,618,302 2,396,336 66,939,946 224,564,345 33,818,918 73,264,364 2,992,716 7,812,064 80,179,914 7,299,356 7,727,748 5,336 20,460,311 9,272,519 53,822,823 7,818,044 12,342,664 1,424,202 6,237,667 81,432,845 28,001,327 23,211,279 84,322 - 22,807,982 35,628,118 22,290,073 1,646,148 209,266 248,342 281,533,993 498,363,943 8,711,102 (58,956,778) (104,338,221) 158,234,836 444,764,922 11,466,253 26,895,066 50,850,528 61,264,981 69,698,172 33,665,661 3,751,263 77,105,049 73,796,781 52,378,348 - (1,782,090,744) (10,005,053) 3,389,064,304 - 1 - - 5,159,456 7,390,854 24,422,654 32,530,127 2,367,312 7,666,802 8,630,215 31,402,626 19,298,297 - 1 - - - - - - 612,676 1,087,677 1,942,063 1,170,931 1,075,811 2,177,709 13,305 16,166 625,982 9,847,779 7,937,828 12,590,288 310,451,501 185,266,255 (24,422,654) (31,402,626) 2,847,709 20,180,823 22,960,562 4,285,458 4,886,064 40,166,814 11,072,435 6,675,472 10,768,352 8,527,161 57,999,593 403,581,048 (1,322,024,225) 478,361,882 609,409,322 88,669,117 110,795,201 100,700,655 125,609,898 33,665,518 55,498,838 284,339,062 362,640,263 1,761,539,131 1,707,545,357 845,400,587 840,968,372 3,097,266,606 5,723,349,345 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Other non-current financial assets Other non-current non-financial assets Trade and other non-current receivables Non-current accounts receivable from related companies Investments accounted for using the equity method Intangible assets other than goodwill Goodwill Property, plant and equipment Investment property Deferred tax assets 34,135 10,855,062 620,058 3,530,759 21,167,037 32,681,631 18,180,990 47,407,928 40,002,220 94,475,380 1,852,154,229 2,083,893 18,851,913 44,948 - 1,070,608 2,621,113,891 205,987,826 191,081,462 - - - 6,719,853 - 30,877 42,847 3,600,646 3,804,828 - 1,981,428 70,302 1,401,472 301,118,584 174,458,331 - - - - - - - - - - - - TOTAL ASSETS 5,216,062,752 5,097,648,876 658,318,127 487,705,039 486,960,688 644,477,672 1,980,785,898 2,116,929,270 1,076,114,971 1,082,627,431 (1,373,010,745) (1,356,726,582) 8,045,231,691 8,072,661,706 The eliminations column corresponds to transactions between companies in different lines of business and country, primarily purchases and sales of energy and services. 498 2015 Annual Report Enersis                                                                                                                                                           35.4 Generation and Transmission, and Distribution by Country a) Generation and Transmission Line of business Country ASSETS Cash and cash equivalents Other current financial assets Other current non-financial assets Trade and other current receivables Inventories Current tax assets - - - - - - - - - - - - - - - - - - - - Investments accounted for using the equity method 1,852,154,229 2,083,893 Other non-current financial assets Other non-current non-financial assets Trade and other non-current receivables Non-current accounts receivable from related companies Intangible assets other than goodwill Goodwill Property, plant and equipment Investment property Deferred tax assets 6,719,853 30,877 42,847 3,600,646 3,804,828 301,118,584 174,458,331 18,851,913 44,948 1,070,608 1,981,428 70,302 1,401,472 - - - - 34,135 10,855,062 620,058 3,530,759 The eliminations column corresponds to transactions between companies in different lines of business and country, primarily purchases and sales of energy and services. CURRENT ASSETS  5,216,028,617 587,911,081 143,791,564 111,345,580 109,584,185 179,310,128 172,957,080 329,704,908 172,786,358 164,347,787 (1,840,838,256) -114,094,932 3,974,309,548 1,258,524,552 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Chile Argentina Brazil Colombia Peru Eliminations Total Generation and Transmission Current accounts receivable from related companies 28,482,912 113,265,863 13,726,062 2,649,187 47 50,627,592 4,389,709 10,766,653 15,361 317,283,266 36,871,184 44,701,761 21,513,878 20,268,881 1,458,900 91,879,708 24,188,529 2,707,246 2,043,303 2,909,678 55,648,584 28,040,438 2,268,098 2,209,901 22,236,032 5,824,350 11,386,388 27,816,899 40,682,826 19,388 76,039,740 26,000,508 15,508,149 35,732,810 23,607,823 24,762 1,618,302 2,396,336 66,939,946 224,564,345 33,818,918 73,264,364 2,992,716 7,812,064 80,179,914 7,299,356 7,727,748 5,336 20,460,311 9,272,519 53,822,823 7,818,044 12,342,664 1,424,202 - 6,237,667 81,432,845 28,001,327 23,211,279 84,322 - 22,807,982 35,628,118 - - - - - - 158,234,836 444,764,922 11,466,253 26,895,066 50,850,528 61,264,981 209,266 248,342 281,533,993 498,363,943 8,711,102 (58,956,778) (104,338,221) 22,290,073 1,646,148 - - - - 69,698,172 33,665,661 3,751,263 77,105,049 73,796,781 52,378,348 Non-current assets or disposal groups held for sale or held for distribution to owners 5,171,155,048 10,005,053 - - - - - - (1,782,090,744) (10,005,053) 3,389,064,304 - NON-CURRENT ASSETS 34,135 4,509,737,795 514,526,563 376,359,459 377,376,503 465,167,544 1,807,828,818 1,787,224,362 903,328,613 918,279,644 467,827,511 -1,242,631,650 4,070,922,143 6,814,137,154 1 5,159,456 7,390,854 24,422,654 32,530,127 2,367,312 - 1 7,666,802 8,630,215 31,402,626 19,298,297 612,676 1,087,677 1,942,063 - - 1,170,931 1,075,811 2,177,709 - - 2,847,709 20,180,823 22,960,562 - 4,285,458 4,886,064 13,305 16,166 - - - - - - - - - - - - 625,982 9,847,779 7,937,828 12,590,288 310,451,501 185,266,255 (24,422,654) (31,402,626) - - 40,166,814 11,072,435 6,675,472 57,999,593 403,581,048 (1,322,024,225) 478,361,882 609,409,322 10,768,352 8,527,161 - - 33,665,518 55,498,838 88,669,117 110,795,201 100,700,655 125,609,898 2,621,113,891 205,987,826 191,081,462 284,339,062 362,640,263 1,761,539,131 1,707,545,357 845,400,587 840,968,372 - - - - 21,167,037 32,681,631 18,180,990 47,407,928 - - - - - - - - - - 3,097,266,606 5,723,349,345 - - 40,002,220 94,475,380 TOTAL ASSETS 5,216,062,752 5,097,648,876 658,318,127 487,705,039 486,960,688 644,477,672 1,980,785,898 2,116,929,270 1,076,114,971 1,082,627,431 (1,373,010,745) (1,356,726,582) 8,045,231,691 8,072,661,706 499 Consolidated Financial Statements                                                                                                                                                          3,470,102 855,152 4,438,000 1,096,143 4,714,473 1,951,295 40,466,452 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 81,419,354 38,351,988 91,117,121 96,623,249 - - - 941,834,867 1,871,186,406 97,364,873 3,858,836 41,883,233 34,859,087 181,262,110 397,978,536 21,548,342 43,461,827 55,123,818 1,883,078,264 (48,543,708) (31,686,032) 10,685,702 4,908,454 - - - - - - - - - - - - - - - - - - - - - - - - - - - Country Chile Argentina Brazil Colombia Peru Eliminations Total LIABILITIES AND EQUITY 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ CURRENT LIABILITIES 1,828,533,074 674,505,169 219,381,678 180,031,592 126,744,267 209,741,472 349,716,663 500,427,459 149,548,832 111,916,694 61,192,354 -54,269,042 2,735,116,868 1,622,353,344 Other current financial liabilities Trade and other current payables 417,400 146,364,103 30,356,957 29,204,543 1,718,719 547,554 135,606,953 90,868,809 62,170,269 30,884,141 230,270,298 297,869,150 158,892 330,234,621 121,997,587 104,631,867 47,259,646 55,829,739 89,385,378 194,459,885 67,063,567 63,043,076 16,847,277 29,732,030 342,712,347 777,931,218 Current accounts payable to related companies 2,336 139,180,109 22,841,700 27,161,544 57,806,281 147,681,040 22,926,498 131,257,351 11,770,115 9,832,315 (10,778,741) (84,001,072) 104,568,189 371,111,287 Generation and Transmission Other current provisions Current tax liabilities Current provisions for employee benefits Other non-current non-financial liabilities - - - - - 16,313,502 Liabilities associated with groups of assets or disposal groups held for sale or distribution to owners 1,827,954,446 - - - - - 11,530,375 - 10,932,577 2,744,275 666,299 31,480,257 41,441,159 6,836,964 19,959,621 2,213,037 28,563,318 55,331,792 1,153,023 761,199 72,379,364 24,071,622 6,295,715 2,681,490 NON-CURRENT LIABILITIES 199,807 1,060,892,738 218,971,414 154,168,284 34,180,263 8,446,341 831,187,905 883,041,284 277,281,858 322,944,470 (48,543,708) -31,370,967 1,313,277,539 2,398,122,150 Other non-current financial liabilities Trade and other non-current payables Non-current account payables to related companies Other long-term provisions Deferred tax liabilities - - - - - 778,135,168 38,637,260 44,052,205 3,711,078 94,453,409 89,968 - 35,630,861 36,594,486 25,161,118 - - 232,045,128 46,358,947 31,236,466 3,012,998 2,421,880 781,500,274 862,784,448 118,684,335 183,792,705 2,911,464 23,598,549 57,790 4,657,252 5,571,273 32,991,300 465,509 4,234,681 3,661,187 134,903,163 134,696,942 Non-current provisions for employee benefits 199,807 18,882,217 3,890,937 3,994,647 16,696,331 19,791,327 761,267 793,636 Otros pasivos no financieros no Current - 2,958,029 - 38,200,512 395,398 18,698,412 315,065 18,698,412 41,869,004 EQUITY 3,387,329,871 3,362,250,969 219,965,035 153,505,163 326,036,158 426,289,859 799,881,330 733,460,527 649,284,281 647,766,267 (1,385,659,391) -1,271,086,573 3,996,837,284 4,052,186,212 Equity attributable to shareholders of Enersis Américas 3,387,329,871 3,362,250,969 219,965,035 153,505,163 326,036,158 426,289,859 799,881,330 733,460,527 649,284,281 647,766,267 (1,385,659,391) -1,271,086,573 3,996,837,284 4,052,186,212 Issued capital Retained earnings Share premium Other reserves 2,041,622,319 2,066,342,520 82,865,510 108,474,430 90,172,688 115,185,419 146,498,021 167,029,702 323,227,193 227,902,984 (1,207,662,870) (1,172,172,225) 1,476,722,861 1,512,762,830 1,726,639,410 1,401,123,725 49,183,508 (19,153,229) 134,179,155 159,510,944 217,958,120 110,289,985 48,944,655 170,891,294 181,696,622 349,976,414 2,358,601,470 2,172,639,133 206,008,557 206,008,557 - - - 49,641 590,505 - 206,058,198 206,599,062 (586,940,415) (311,223,833) 87,916,017 64,183,962 101,684,315 151,593,496 435,425,189 456,140,840 277,062,792 248,381,484 (359,693,143) (448,890,762) (44,545,245) 160,185,187 Total Liabilities and Equity 5,216,062,752 5,097,648,876 658,318,127 487,705,039 486,960,688 644,477,672 1,980,785,898 2,116,929,270 1,076,114,971 1,082,627,431 (1,373,010,745) (1,356,726,582) 8,045,231,691 8,072,661,706 The eliminations column corresponds to transactions between companies in different lines of business and country, primarily purchases and sales of energy and services. 500 2015 Annual Report Enersis                                                                                                                                                                                                 - - - - - - - - - - - - 55,123,818 - - - - - 3,470,102 855,152 4,438,000 1,096,143 4,714,473 - - - - - 81,419,354 38,351,988 91,117,121 96,623,249 - - 1,951,295 40,466,452 1,883,078,264 - 10,932,577 2,744,275 666,299 31,480,257 41,441,159 6,836,964 - - 72,379,364 24,071,622 6,295,715 2,681,490 19,959,621 2,213,037 28,563,318 55,331,792 1,153,023 761,199 Country Chile Argentina Brazil Colombia Peru Eliminations Total CURRENT LIABILITIES 1,828,533,074 674,505,169 219,381,678 180,031,592 126,744,267 209,741,472 349,716,663 500,427,459 149,548,832 111,916,694 61,192,354 -54,269,042 2,735,116,868 1,622,353,344 Current accounts payable to related companies 2,336 139,180,109 22,841,700 27,161,544 57,806,281 147,681,040 22,926,498 131,257,351 11,770,115 9,832,315 (10,778,741) (84,001,072) 104,568,189 371,111,287 417,400 146,364,103 30,356,957 29,204,543 1,718,719 547,554 135,606,953 90,868,809 62,170,269 30,884,141 - - 230,270,298 297,869,150 158,892 330,234,621 121,997,587 104,631,867 47,259,646 55,829,739 89,385,378 194,459,885 67,063,567 63,043,076 16,847,277 29,732,030 342,712,347 777,931,218 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Generation and Transmission LIABILITIES AND EQUITY Other current financial liabilities Trade and other current payables Other current provisions Current tax liabilities Current provisions for employee benefits Other non-current non-financial liabilities Other non-current financial liabilities Trade and other non-current payables Other long-term provisions Deferred tax liabilities Liabilities associated with groups of assets or disposal groups held for sale or distribution to owners 1,827,954,446 - - - - - - - - - - 16,313,502 11,530,375 - - 778,135,168 38,637,260 44,052,205 3,711,078 94,453,409 89,968 25,161,118 232,045,128 46,358,947 31,236,466 - - - - - - - - - - The eliminations column corresponds to transactions between companies in different lines of business and country, primarily purchases and sales of energy and services. NON-CURRENT LIABILITIES 199,807 1,060,892,738 218,971,414 154,168,284 34,180,263 8,446,341 831,187,905 883,041,284 277,281,858 322,944,470 (48,543,708) -31,370,967 1,313,277,539 2,398,122,150 Non-current account payables to related companies - 35,630,861 36,594,486 Non-current provisions for employee benefits 199,807 18,882,217 3,890,937 3,994,647 Otros pasivos no financieros no Current 2,958,029 38,200,512 3,012,998 2,421,880 781,500,274 862,784,448 118,684,335 183,792,705 2,911,464 23,598,549 57,790 - - - - - - - - - - - - - 941,834,867 1,871,186,406 97,364,873 3,858,836 (48,543,708) (31,686,032) 10,685,702 4,908,454 4,657,252 5,571,273 32,991,300 465,509 4,234,681 3,661,187 - - - - - - - 134,903,163 134,696,942 16,696,331 19,791,327 761,267 793,636 395,398 - - 18,698,412 - - - - - - - - 41,883,233 34,859,087 181,262,110 397,978,536 21,548,342 43,461,827 315,065 18,698,412 41,869,004 EQUITY 3,387,329,871 3,362,250,969 219,965,035 153,505,163 326,036,158 426,289,859 799,881,330 733,460,527 649,284,281 647,766,267 (1,385,659,391) -1,271,086,573 3,996,837,284 4,052,186,212 Equity attributable to shareholders of Enersis Américas 3,387,329,871 3,362,250,969 219,965,035 153,505,163 326,036,158 426,289,859 799,881,330 733,460,527 649,284,281 647,766,267 (1,385,659,391) -1,271,086,573 3,996,837,284 4,052,186,212 Issued capital Retained earnings Share premium Other reserves 2,041,622,319 2,066,342,520 82,865,510 108,474,430 90,172,688 115,185,419 146,498,021 167,029,702 323,227,193 227,902,984 (1,207,662,870) (1,172,172,225) 1,476,722,861 1,512,762,830 1,726,639,410 1,401,123,725 49,183,508 (19,153,229) 134,179,155 159,510,944 217,958,120 110,289,985 48,944,655 170,891,294 181,696,622 349,976,414 2,358,601,470 2,172,639,133 206,008,557 206,008,557 - - - - 49,641 590,505 - - 206,058,198 206,599,062 (586,940,415) (311,223,833) 87,916,017 64,183,962 101,684,315 151,593,496 435,425,189 456,140,840 277,062,792 248,381,484 (359,693,143) (448,890,762) (44,545,245) 160,185,187 Total Liabilities and Equity 5,216,062,752 5,097,648,876 658,318,127 487,705,039 486,960,688 644,477,672 1,980,785,898 2,116,929,270 1,076,114,971 1,082,627,431 (1,373,010,745) (1,356,726,582) 8,045,231,691 8,072,661,706 501 Consolidated Financial Statements                                                                                                                                                                                                Country Chile Argentina Brazil Eliminations Total STATEMENT OF COMPREHENSIVE INCOME REVENUE Revenue Energy sales Other sales Other services rendered Other operating income RAW MATERIALS AND CONSUMABLES USED Energy purchases Fuel consumption Transportation expense Other miscellaneous supplies and services CONTRIBUTION MARGIN Other works performed by the entity and capitalized Employee benefits expense Other expenses GROSS OPERATING RESULTS Depreciation and amortization expense Impairment losses (reversal of impairment losses) recognized in profit or loss OPERATING INCOME FINANCIAL RESULTS Financial income Cash and cash equivalents Other Financial income Financial costs Bank borrowings Secured and unsecured obligations Other Profits (losses) from indexed assets and liabilities Foreign currency exchange differences Positive Negative Share of profit of associates accounted for using the equity method Other gains (losses) Gain (loss) from other investments Gain (loss) from the sale of property, plant and equipment 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 ThCh$ 4,082,290 4,082,290 - - 4,082,290 - - - - - - 4,082,290 ThCh$ 5,160,988 5,160,988 - - 5,160,988 - - - - - - 5,160,988 ThCh$ 3,102,453 3,102,453 - - 3,102,453 - - - - - - 3,102,453 ThCh$ 212,136,445 157,348,898 118,064,590 - 39,284,308 54,787,547 (50,332,370) (1,479,711) (39,487,378) (883,161) (8,482,120) 161,804,075 ThCh$ 167,629,542 124,403,558 75,488,280 - 48,915,278 43,225,984 (47,296,150) (5,069,376) (31,350,429) (1,832,459) (9,043,886) 120,333,392 ThCh$ 173,767,878 138,071,697 109,113,647 - 28,958,050 35,696,181 (56,031,616) (18,314,110) (25,889,830) (1,826,163) (10,001,513) 117,736,262 ThCh$ 305,829,811 305,829,811 250,599,834 - 55,229,977 - (131,431,046) (57,315,995) (61,626,347) (12,466,467) (22,237) 174,398,765 ThCh$ 437,032,601 437,032,601 369,739,130 - 67,293,471 - (234,224,494) (155,266,089) (58,409,123) (16,037,191) (4,512,091) 202,808,107 ThCh$ 349,612,268 349,355,959 286,300,194 - 63,055,765 256,309 (141,838,915) (51,759,989) (51,277,737) (9,695,879) (29,105,310) 207,773,353 - - - 3,949,935 4,717,343 2,994,025 1,029,091 843,966 798,621 5,344,745 5,763,278 5,001,430 431,498 550,306 461,664 3,632,336 1,673,387 14,387,605 13,548,280 9,255,740 (407,906) (1,898,316) 1,776,068 (398,886) (349,920) 4,412,182 (395,543) (303,250) 2,403,660 (56,220,837) (23,389,085) 86,144,088 (40,274,266) (22,301,843) 62,474,626 (33,097,900) (19,974,007) 67,658,380 (11,749,621) (10,599,409) 153,078,826 (14,797,349) (12,075,955) 176,778,769 (12,441,385) (9,947,279) 186,183,310 (20,843,530) (29,558,639) (20,155,909) (24,447,808) (18,284,458) (20,175,229) (18,628,502) (31,408,734) (16,552,441) (25,612,491) (14,606,541) (21,653,706) 412,046,148 494,084,841 401,480,606 213,768,610 208,373,278 167,668,785 309,909 361,158 484,995 (96,544,274) (107,850,396) (92,178,851) (84,426,859) (78,825,827) (71,568,476) 866,813,740 946,123,696 825,394,741 - - 1,776,068 530,715 78,056 78,056 - (3,126,870) 3,126,870 (6,253,740) - - - 4,412,182 (4,284,233) 443,158 443,158 - (2,261,919) - - (2,261,919) - - 2,403,660 11,086,035 389,747 159,945 229,802 (1,551,540) - - (1,551,540) (34,934,726) (23,684,899) (26,740,217) (21,509,767) (26,790,105) (24,882,875) (39,108,707) (43,806,832) (37,628,154) (51,738,067) (48,327,434) (41,395,669) - (81,595) (5,788,836) (13,312) (1,154,946) (695,613) (109,012) (787,645) 76,227 (4,704,314) (1,188,617) (6,698,767) 51,209,362 133,277,754 75,454,262 75,357,320 96,942 (40,380,160) (5,338,424) - (35,041,736) 38,708,132 (1,703,723) 83,671,357 3,480,928 80,190,429 (23,365,735) (8,088,985) - (15,276,750) 35,129,327 (85,446,575) 4,244,643 3,943,498 301,145 (31,560,337) (8,966,137) - (22,594,200) 131,555,747 22,320,357 10,178,944 7,132,537 3,046,407 (11,661,217) (288,377) - (11,372,840) 148,833,718 19,658,005 23,653,993 12,088,079 11,565,914 (14,528,800) (1,846,966) (12,681,834) 160,604,822 15,184,608 19,932,499 11,073,482 8,859,017 (12,677,600) (1,838,781) - (10,838,819) - - - - - - - - - 3,579,529 15,185,792 (11,606,263) (2,465,472) 13,428,723 (15,894,195) 12,247,828 20,015,266 (7,767,438) 98,203,652 188,314,172 (90,110,520) (62,009,345) 15,924,492 (77,933,837) (58,130,881) 18,008,939 (76,139,820) 23,802,630 44,422,294 (20,619,664) 10,532,812 15,287,550 (4,754,738) 7,929,709 13,724,429 (5,794,720) - - - - - - - - 2,678,513 42,761 42,761 (428,872) - - (428,872) - 662,310 707,468 (45,158) - 733,526 725,672 7,854 - - - - - - - - - - - - Income before tax 2,306,783 127,949 13,532,456 186,736,757 37,666,719 (49,583,722) 153,876,104 168,491,723 175,789,430 332,845,961 414,973,136 337,292,434 141,078,541 146,265,252 107,295,520 11,024,799 4,146,888 816,844,146 778,549,578 588,473,006 Income tax (40,617,049) (27,760,379) (21,650,895) (78,511,077) (28,903,711) (7,294,916) (53,206,799) (39,386,507) (25,337,026) (120,949,697) (126,151,738) (106,503,562) (42,320,367) (32,191,266) (31,842,461) - (335,604,989) (254,393,601) (192,628,860) Net income from continuing operations (38,310,266) (27,632,430) (8,118,439) 108,225,680 8,763,008 (56,878,638) 100,669,305 129,105,216 150,452,404 211,896,264 288,821,398 230,788,872 98,758,174 114,073,986 75,453,059 11,024,799 4,146,888 481,239,157 524,155,977 395,844,146 Net income from discontinued operations 223,831,259 123,226,510 179,048,751 - - - - 223,831,259 123,226,510 179,048,751 Net Income 185,520,993 95,594,080 170,930,312 108,225,680 8,763,008 (56,878,638) 100,669,305 129,105,216 150,452,404 211,896,264 288,821,398 230,788,872 98,758,174 114,073,986 75,453,059 11,024,799 4,146,888 705,070,416 647,382,487 574,892,897 Country Chile Argentina Brazil Colombia Peru Eliminations Total STATEMENT OF CASH FLOWS Net cash flows from (used in) operating activities Net cash flows from (used in) investing activities Net cash flows from (used in) financing activities 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 451,437,274 239,014,894 304,511,164 106,129,177 79,108,857 23,434,990 118,976,796 187,589,266 172,240,644 254,539,609 364,425,930 273,903,244 170,273,397 156,986,993 100,608,823 (2,617,119) (407,289) (529,831) 1,098,739,134 1,026,718,651 874,169,034 (132,211,583) 34,558,119 65,544,539 (78,645,571) (56,312,879) (38,876,836) (4,610,998) (24,096,560) (6,217,205) (159,371,575) (185,214,366) (125,834,718) (56,503,902) (18,336,629) (8,773,627) (114,333,695) (107,704,873) (80,477,575) (545,677,324) (357,107,188) (194,635,422) (320,808,291) (281,839,416) (319,365,277) (20,192,869) (18,507,611) 14,391,257 (159,800,756) (122,230,027) (203,692,092) (259,847,758) (151,340,517) (104,425,180) (153,855,492) (109,291,615) (96,493,312) 116,874,513 108,112,444 81,007,406 (797,630,653) (575,096,742) (628,577,198) The eliminations column corresponds to transactions between companies in different lines of business and country, primarily purchases and sales of energy and services. Generation and Transmission Colombia ThCh$ 778,768,427 769,665,035 762,280,521 7,290,919 93,595 9,103,392 (162,261,692) (62,987,536) (64,562,969) (31,852,658) ThCh$ 753,385,349 744,236,226 743,649,328 476,853 110,045 9,149,123 (80,294,031) (33,015,871) (68,739,282) (38,410,885) ThCh$ 639,460,200 634,800,723 634,181,459 - 619,264 4,659,477 (87,695,910) (34,870,502) (59,719,073) (22,235,852) ThCh$ 437,887,044 435,277,054 355,087,025 13,833,990 66,356,039 2,609,990 (17,092,514) (94,012,661) (43,595,972) (19,811,549) Peru ThCh$ 401,695,198 392,252,284 325,248,022 12,603,162 54,401,100 9,442,914 (21,103,383) (82,758,971) (35,235,902) (12,609,038) (321,664,855) (220,460,069) (204,521,337) (174,512,696) (151,707,294) (112,418,728) ThCh$ 315,886,096 294,442,189 275,491,763 8,817,669 10,132,757 21,443,907 (14,637,475) (62,465,952) (22,491,100) (12,824,201) ThCh$ (3,942,245) (3,930,384) ThCh$ (2,034,545) (2,034,545) (3,930,384) (2,034,545) (11,861) ThCh$ (484,995) (476,535) (476,535) (8,460) ThCh$ ThCh$ ThCh$ 1,734,761,772 1,762,869,133 1,481,343,900 1,668,272,704 1,701,051,112 1,419,296,486 1,486,031,970 1,514,124,760 1,305,087,063 21,124,909 161,115,825 66,489,068 13,080,015 8,817,669 173,846,337 105,391,754 61,818,021 62,047,414 (677,940,967) (653,688,007) (514,810,596) 3,103,553 3,056,025 3,962,147 (235,046,359) (258,676,854) (168,445,337) (3,103,553) (3,056,025) (3,962,147) (124,612,122) (124,900,859) (258,113,922) (205,534,394) (174,504,021) (60,168,564) (64,575,900) (97,694,362) (74,166,876) 457,103,572 532,925,280 434,938,863 263,374,348 249,987,904 203,467,368 (3,942,245) (2,034,545) (484,995) 1,056,820,805 1,109,181,126 966,533,304 1,062,402 1,144,181 (1,971,425) 11,024,799 (9,126,267) 4,146,888 (2,226,200) (1,971,425) 1,971,425 (9,126,267) 9,126,265 (2,226,200) 2,226,198 (109,517,207) 1,971,425 9,126,265 2,226,198 (147,291,267) (142,609,270) (130,646,915) (4,826,638) (3,212,803) (13,106,989) - 714,695,835 800,301,623 681,640,837 (22,550,175) (94,072,305) 99,864,652 88,032,028 86,308,158 1,723,870 (15,348,968) (80,843,198) (13,325,041) 121,349,831 219,603,572 (98,253,741) 2,678,513 (394,854) - - (394,854) 111,084,259 26,728,453 84,355,806 (85,935,531) (21,393,127) (78,729,951) 14,187,547 34,749,918 24,151,441 10,598,477 (91,401,647) (21,454,758) (55,830,044) (14,116,845) (47,698,903) (37,420,576) 39,651,691 46,792,154 (87,350,594) (84,212,730) - - - - 798,130 707,468 90,662 904,474 768,433 136,041 372,828,429 449,490,364 363,928,679 157,326,229 158,857,227 119,574,349 (39,872,136) (34,591,411) (26,946,483) (16,392,038) (12,653,612) (12,096,778) 3,321,340 2,942,242 379,098 11,379,616 11,265,048 9,848,063 1,531,553 7,992,710 3,272,338 970,851 798,003 172,848 (44,085,917) (44,880,587) (38,653,714) (12,234,468) (10,024,755) (8,596,486) (71,452,386) (6,301,664) (74,994,653) (6,801,800) (51,294,445) 35,962,955 36,415,730 19,442,531 (4,252,551) (3,137,072) (4,844,845) 868,225 194,177 (5,155,512) (3,735,298) (1,133,945) 981,806 162,375 (9,184,654) (3,848,040) (4,535,599) (801,015) - - - (110,332) 74,183 310,238 144,350 61,637 (182,051) (110,332) 74,183 310,238 144,350 61,637 (182,051) - - - - - - - - - - - - - - - - - - - 892,441 1,875,433 (982,992) (1,090,440) 1,172,568 (2,263,008) 442,183 740,084 (297,901) (5,128,421) 2,210,164 (7,338,585) (3,691,259) 2,845,603 (6,536,862) (4,056,305) 3,279,188 (32,404,283) (7,335,493) 32,404,283 11,024,801 (9,007,245) 20,032,046 4,146,890 (8,975,752) 13,122,642 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 502 2015 Annual Report Enersis                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Country Chile Argentina Brazil Generation and Transmission Colombia Peru Eliminations Total 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 RAW MATERIALS AND CONSUMABLES USED (50,332,370) (47,296,150) (56,031,616) (131,431,046) (234,224,494) (141,838,915) 4,082,290 5,160,988 3,102,453 55,229,977 67,293,471 63,055,765 ThCh$ 212,136,445 157,348,898 118,064,590 - 39,284,308 54,787,547 (1,479,711) (39,487,378) (883,161) (8,482,120) ThCh$ 167,629,542 124,403,558 ThCh$ 173,767,878 138,071,697 ThCh$ 305,829,811 305,829,811 ThCh$ 437,032,601 437,032,601 75,488,280 109,113,647 250,599,834 369,739,130 - 48,915,278 43,225,984 - 28,958,050 35,696,181 (5,069,376) (31,350,429) (1,832,459) (9,043,886) (18,314,110) (25,889,830) (1,826,163) (10,001,513) (57,315,995) (155,266,089) (61,626,347) (12,466,467) (22,237) (58,409,123) (16,037,191) (4,512,091) ThCh$ 349,612,268 349,355,959 286,300,194 - 256,309 (51,759,989) (51,277,737) (9,695,879) (29,105,310) ThCh$ 778,768,427 769,665,035 762,280,521 7,290,919 93,595 9,103,392 (321,664,855) (162,261,692) (62,987,536) (64,562,969) (31,852,658) 457,103,572 ThCh$ 753,385,349 744,236,226 743,649,328 476,853 110,045 9,149,123 (220,460,069) (80,294,031) (33,015,871) (68,739,282) (38,410,885) 532,925,280 ThCh$ 639,460,200 634,800,723 634,181,459 - 619,264 4,659,477 (204,521,337) (87,695,910) (34,870,502) (59,719,073) (22,235,852) 434,938,863 ThCh$ 437,887,044 435,277,054 355,087,025 13,833,990 66,356,039 2,609,990 (174,512,696) (17,092,514) (94,012,661) (43,595,972) (19,811,549) 263,374,348 ThCh$ 401,695,198 392,252,284 325,248,022 12,603,162 54,401,100 9,442,914 (151,707,294) (21,103,383) (82,758,971) (35,235,902) (12,609,038) 249,987,904 ThCh$ 315,886,096 294,442,189 275,491,763 8,817,669 10,132,757 21,443,907 (112,418,728) (14,637,475) (62,465,952) (22,491,100) (12,824,201) 203,467,368 ThCh$ (3,942,245) (3,930,384) - - (3,930,384) (11,861) - 3,103,553 - (3,103,553) - (3,942,245) ThCh$ (2,034,545) (2,034,545) - - (2,034,545) - - 3,056,025 - (3,056,025) - (2,034,545) ThCh$ (484,995) (476,535) - - (476,535) (8,460) - 3,962,147 - (3,962,147) - (484,995) ThCh$ 1,734,761,772 1,668,272,704 1,486,031,970 21,124,909 161,115,825 66,489,068 (677,940,967) (235,046,359) (258,113,922) (124,612,122) (60,168,564) 1,056,820,805 ThCh$ 1,762,869,133 1,701,051,112 1,514,124,760 13,080,015 173,846,337 61,818,021 (653,688,007) (258,676,854) (205,534,394) (124,900,859) (64,575,900) 1,109,181,126 CONTRIBUTION MARGIN 4,082,290 5,160,988 3,102,453 161,804,075 120,333,392 117,736,262 174,398,765 202,808,107 207,773,353 12-31-2013 ThCh$ 1,481,343,900 1,419,296,486 1,305,087,063 8,817,669 105,391,754 62,047,414 (514,810,596) (168,445,337) (174,504,021) (97,694,362) (74,166,876) 966,533,304 3,949,935 4,717,343 2,994,025 1,029,091 843,966 798,621 5,344,745 5,763,278 5,001,430 431,498 550,306 461,664 3,632,336 1,673,387 - 14,387,605 13,548,280 9,255,740 STATEMENT OF COMPREHENSIVE INCOME REVENUE ThCh$ 4,082,290 4,082,290 ThCh$ 5,160,988 5,160,988 ThCh$ 3,102,453 3,102,453 Revenue Energy sales Other sales Other services rendered Other operating income Energy purchases Fuel consumption Transportation expense Other miscellaneous supplies and services Other works performed by the entity and capitalized Employee benefits expense Other expenses GROSS OPERATING RESULTS OPERATING INCOME FINANCIAL RESULTS Depreciation and amortization expense Impairment losses (reversal of impairment losses) recognized in profit or loss Financial income Cash and cash equivalents Other Financial income Financial costs Bank borrowings Secured and unsecured obligations Profits (losses) from indexed assets and Foreign currency exchange differences Other liabilities Positive Negative Share of profit of associates accounted for using the equity method Other gains (losses) Gain (loss) from other investments Gain (loss) from the sale of property, plant and equipment - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (407,906) (1,898,316) 1,776,068 (398,886) (349,920) 4,412,182 (395,543) (303,250) (56,220,837) (23,389,085) (40,274,266) (22,301,843) (33,097,900) (19,974,007) (11,749,621) (10,599,409) (14,797,349) (12,075,955) (12,441,385) (9,947,279) 2,403,660 86,144,088 62,474,626 67,658,380 153,078,826 176,778,769 186,183,310 (20,843,530) (29,558,639) 412,046,148 (20,155,909) (24,447,808) 494,084,841 (18,284,458) (20,175,229) 401,480,606 (18,628,502) (31,408,734) 213,768,610 (16,552,441) (25,612,491) 208,373,278 (14,606,541) (21,653,706) 167,668,785 (34,934,726) (23,684,899) (26,740,217) (21,509,767) (26,790,105) (24,882,875) (39,108,707) (43,806,832) (37,628,154) (51,738,067) (48,327,434) (41,395,669) - (81,595) (5,788,836) (13,312) (1,154,946) (695,613) (109,012) (787,645) 76,227 (4,704,314) (1,188,617) (6,698,767) 1,776,068 530,715 78,056 78,056 (3,126,870) 3,126,870 (6,253,740) 35,129,327 131,555,747 148,833,718 160,604,822 4,412,182 (4,284,233) 443,158 443,158 2,403,660 11,086,035 389,747 159,945 229,802 51,209,362 133,277,754 75,454,262 75,357,320 96,942 38,708,132 (1,703,723) 83,671,357 3,480,928 80,190,429 (85,446,575) 4,244,643 3,943,498 301,145 22,320,357 10,178,944 7,132,537 3,046,407 19,658,005 23,653,993 12,088,079 11,565,914 (2,261,919) (1,551,540) (40,380,160) (23,365,735) (31,560,337) (11,661,217) (14,528,800) (5,338,424) (8,088,985) (8,966,137) (288,377) (1,846,966) 15,184,608 19,932,499 11,073,482 8,859,017 (12,677,600) (1,838,781) (2,261,919) (1,551,540) (35,041,736) (15,276,750) (22,594,200) (11,372,840) (12,681,834) (10,838,819) 3,579,529 15,185,792 (2,465,472) 13,428,723 (11,606,263) (15,894,195) 12,247,828 20,015,266 (7,767,438) 98,203,652 (62,009,345) (58,130,881) 188,314,172 (90,110,520) 15,924,492 (77,933,837) 18,008,939 (76,139,820) (20,619,664) 23,802,630 44,422,294 10,532,812 15,287,550 (4,754,738) 7,929,709 13,724,429 (5,794,720) - - - 42,761 42,761 2,678,513 (428,872) (428,872) 662,310 707,468 (45,158) 733,526 725,672 7,854 - - - - - - 372,828,429 (39,872,136) 3,321,340 2,942,242 379,098 (44,085,917) (8,596,486) (71,452,386) 35,962,955 449,490,364 (34,591,411) 11,379,616 9,848,063 1,531,553 (44,880,587) (6,301,664) (74,994,653) 36,415,730 - - 892,441 1,875,433 (982,992) - (110,332) - (110,332) (1,090,440) 1,172,568 (2,263,008) - 74,183 - 74,183 363,928,679 (26,946,483) 11,265,048 7,992,710 3,272,338 (38,653,714) (6,801,800) (51,294,445) 19,442,531 - 442,183 740,084 (297,901) - 310,238 - 310,238 157,326,229 (16,392,038) 970,851 798,003 172,848 (12,234,468) (4,252,551) (3,137,072) (4,844,845) 158,857,227 (12,653,612) 1,062,402 868,225 194,177 (10,024,755) (5,155,512) (3,735,298) (1,133,945) 119,574,349 (12,096,778) 1,144,181 981,806 162,375 (9,184,654) (3,848,040) (4,535,599) (801,015) (5,128,421) 2,210,164 (7,338,585) (3,691,259) 2,845,603 (6,536,862) - 144,350 - 144,350 - 61,637 - 61,637 (4,056,305) 3,279,188 (7,335,493) - (182,051) - (182,051) Income before tax 2,306,783 127,949 13,532,456 186,736,757 37,666,719 (49,583,722) 153,876,104 168,491,723 175,789,430 332,845,961 414,973,136 337,292,434 141,078,541 146,265,252 107,295,520 Income tax (40,617,049) (27,760,379) (21,650,895) (78,511,077) (28,903,711) (7,294,916) (53,206,799) (39,386,507) (25,337,026) (120,949,697) (126,151,738) (106,503,562) (42,320,367) (32,191,266) (31,842,461) Net income from continuing operations (38,310,266) (27,632,430) (8,118,439) 108,225,680 8,763,008 (56,878,638) 100,669,305 129,105,216 150,452,404 211,896,264 288,821,398 230,788,872 98,758,174 114,073,986 75,453,059 Net income from discontinued operations 223,831,259 123,226,510 179,048,751 - - - - Net Income 185,520,993 95,594,080 170,930,312 108,225,680 8,763,008 (56,878,638) 100,669,305 129,105,216 150,452,404 211,896,264 288,821,398 230,788,872 98,758,174 114,073,986 75,453,059 - 309,909 - - - - - (1,971,425) (1,971,425) 1,971,425 - - 1,971,425 - 361,158 - - - - 484,995 - (107,850,396) (96,544,274) 866,813,740 (92,178,851) (84,426,859) 946,123,696 (78,825,827) (71,568,476) 825,394,741 - - (147,291,267) (142,609,270) (130,646,915) (4,826,638) (3,212,803) (13,106,989) - 11,024,799 (9,126,267) - 4,146,888 (2,226,200) (9,126,267) 9,126,265 (2,226,200) 2,226,198 9,126,265 2,226,198 714,695,835 99,864,652 88,032,028 86,308,158 1,723,870 (109,517,207) (15,348,968) (80,843,198) (13,325,041) 800,301,623 (22,550,175) 111,084,259 26,728,453 84,355,806 (85,935,531) (21,393,127) (78,729,951) 14,187,547 681,640,837 (94,072,305) 34,749,918 24,151,441 10,598,477 (91,401,647) (21,454,758) (55,830,044) (14,116,845) - (32,404,283) 32,404,283 11,024,801 (9,007,245) 20,032,046 4,146,890 (8,975,752) 13,122,642 121,349,831 219,603,572 (98,253,741) (47,698,903) 39,651,691 (87,350,594) (37,420,576) 46,792,154 (84,212,730) - - - - - - - - - - - - - - - - - 2,678,513 (394,854) - (394,854) - 798,130 707,468 90,662 - 904,474 768,433 136,041 11,024,799 4,146,888 816,844,146 778,549,578 588,473,006 - - (335,604,989) (254,393,601) (192,628,860) 11,024,799 4,146,888 481,239,157 524,155,977 395,844,146 - 223,831,259 123,226,510 179,048,751 11,024,799 4,146,888 705,070,416 647,382,487 574,892,897 - - - - - - - - - STATEMENT OF CASH FLOWS Net cash flows from (used in) operating activities activities activities Net cash flows from (used in) investing Net cash flows from (used in) financing Country Chile Argentina Brazil Colombia Peru Eliminations Total 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 451,437,274 239,014,894 304,511,164 106,129,177 79,108,857 23,434,990 118,976,796 187,589,266 172,240,644 254,539,609 364,425,930 273,903,244 170,273,397 156,986,993 100,608,823 (2,617,119) (407,289) (529,831) 1,098,739,134 1,026,718,651 874,169,034 (132,211,583) 34,558,119 65,544,539 (78,645,571) (56,312,879) (38,876,836) (4,610,998) (24,096,560) (6,217,205) (159,371,575) (185,214,366) (125,834,718) (56,503,902) (18,336,629) (8,773,627) (114,333,695) (107,704,873) (80,477,575) (545,677,324) (357,107,188) (194,635,422) (320,808,291) (281,839,416) (319,365,277) (20,192,869) (18,507,611) 14,391,257 (159,800,756) (122,230,027) (203,692,092) (259,847,758) (151,340,517) (104,425,180) (153,855,492) (109,291,615) (96,493,312) 116,874,513 108,112,444 81,007,406 (797,630,653) (575,096,742) (628,577,198) The eliminations column corresponds to transactions between companies in different lines of business and country, primarily purchases and sales of energy and services. 503 Consolidated Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                            b) Distribution Line of Business Country ASSETS CURRENT ASSETS Cash and cash equivalents Other current financial assets Other current non-financial assets Trade and other current receivables Current accounts receivable from related companies Inventories Current tax assets Chile 12-31-2015 ThCh$ 12-31-2014 ThCh$ 1,068,956,933 300,765,617 10,694,452 188,143 - 105 8,208,642 - 431,522 7,716,593 470,266 4,837,555 257,568,198 26,178,562 3,542,452 451,991 Non-current assets or disposal groups held for sale or held for distribution to owners 1,049,434,069 - - - (1,964) - 1,049,432,105 - NON-CURRENT ASSETS Other non-current financial assets Other non-current non-financial assets Trade and other non-current receivables Non-current accounts receivable from related companies Investments accounted for using the equity method Intangible assets other than goodwill Goodwill Property, plant and equipment Investment property Deferred tax assets 462,047,875 1,240,468,968 443,412,233 405,106,897 1,662,603,605 1,871,949,977 847,774,289 928,936,117 675,858,105 587,886,652 - - - - 30,619 188,157 7,364,933 - 462,006,979 541,582,223 - - - - 40,896 14,613,951 2,240,478 674,156,509 - 292,098 TOTAL ASSETS 1,531,004,808 1,541,234,585 634,853,693 814,216,073 2,315,945,976 2,460,970,620 1,055,327,964 1,183,232,390 792,229,768 730,818,485 (4,417,595) (13,369,202) 6,324,944,614 6,717,102,951 The eliminations column corresponds to transactions between companies in different lines of business and country, primarily purchases and sales of energy and services. Distribution Argentina Brazil Colombia Peru Eliminations Total 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 191,441,460 409,109,176 653,342,371 589,020,643 207,553,675 254,296,273 116,371,663 142,931,833 (4,417,595) (13,369,202) 2,233,248,507 1,682,754,340 24,665,201 5,646,882 34,293,476 67,580,309 89,987,572 133,186,201 14,818,083 60,751,331 694,177 - 33,244,064 6,971,011 44,985 17,605,547 1,261,261 1,192,805 65,958,327 96,485,884 1,912,501 2,994,894 2,944,189 4,217,571 124,663,167 360,374,168 508,562,286 410,307,454 99,124,879 93,709,158 69,883,209 56,349,775 52,925 (70,326) 802,286,571 1,178,238,427 239,991 353,432 1,564,236 37,440,101 39,669,296 673,996 23,473 717,960 2,829,584 13,654,154 2,636,246 4,164,227 2,477,562 1,872,593 9,045,986 6,934,552 9,416,923 8,173,453 - 6,792 37,273 19,302,467 13,402,430 (4,468,556) (13,298,876) 27,676,364 29,295,267 - - - - 42,005 488,858,930 496,441,092 427,860 52,122,099 58,185,573 6,208,472 1,294,740 74,095,449 88,314,071 21,751 326,850 355,485 15,027 - - - 486,605 19,612 - - - - - - - - 3,620 2,292,399 7,875,015 6,687 2,568,364 9,132,062 29,497,710 32,798,603 - - - - - - - 44,489,570 50,971,226 7,371,379 24,658,469 1,856,386 2,463,635 905,374,088 1,055,986,162 16,427,134 17,651,975 9,826,406 6,385,114 76,703,162 97,979,622 434,628,262 400,372,440 20,960,307 24,072,231 784,307,032 842,119,957 666,031,699 581,501,538 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 174,458,784 274,881,316 34,171,369 25,046,824 72,076,278 109,728,709 61,185,174 56,267,388 11,961,862 9,296,409 4,091,696,107 5,034,348,611 488,884,301 496,520,403 54,741,348 61,369,954 88,178,936 106,105,806 355,485 486,605 491,519,716 574,400,438 933,484,014 1,097,100,837 76,703,162 100,220,100 1,905,927,300 2,522,222,675 - - 51,901,845 75,921,793 - - - - - - - - - - - - - - - - 504 2015 Annual Report Enersis                                                                                                                                                               b) Distribution Line of Business Country ASSETS CURRENT ASSETS Cash and cash equivalents Other current financial assets Other current non-financial assets Trade and other current receivables Current accounts receivable from related companies Inventories Current tax assets NON-CURRENT ASSETS Other non-current financial assets Other non-current non-financial assets Trade and other non-current receivables Non-current accounts receivable from related companies Investments accounted for using the equity method Intangible assets other than goodwill Goodwill Property, plant and equipment Investment property Deferred tax assets 12-31-2015 ThCh$ 10,694,452 188,143 105 8,208,642 431,522 - - - - - - - - - - 12-31-2014 ThCh$ 7,716,593 470,266 4,837,555 257,568,198 26,178,562 3,542,452 451,991 - - - 30,619 188,157 7,364,933 14,613,951 2,240,478 674,156,509 462,006,979 541,582,223 40,896 292,098 Chile Argentina Brazil Colombia Peru Eliminations Total 1,068,956,933 300,765,617 191,441,460 409,109,176 653,342,371 589,020,643 207,553,675 254,296,273 116,371,663 142,931,833 (4,417,595) (13,369,202) 2,233,248,507 1,682,754,340 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Distribution 24,665,201 5,646,882 34,293,476 67,580,309 89,987,572 133,186,201 14,818,083 60,751,331 694,177 - 33,244,064 6,971,011 44,985 17,605,547 - - 1,261,261 1,192,805 65,958,327 96,485,884 1,912,501 2,994,894 2,944,189 4,217,571 - - - - - - 174,458,784 274,881,316 34,171,369 25,046,824 72,076,278 109,728,709 124,663,167 360,374,168 508,562,286 410,307,454 99,124,879 93,709,158 69,883,209 56,349,775 52,925 (70,326) 802,286,571 1,178,238,427 239,991 353,432 1,564,236 37,440,101 39,669,296 673,996 23,473 717,960 2,829,584 13,654,154 2,636,246 4,164,227 19,302,467 13,402,430 (4,468,556) (13,298,876) 27,676,364 29,295,267 9,416,923 8,173,453 - 6,792 37,273 - - - - 61,185,174 56,267,388 11,961,862 9,296,409 Non-current assets or disposal groups held for sale or held for distribution to owners 1,049,434,069 - - - - 2,477,562 1,872,593 9,045,986 6,934,552 - - - - (1,964) - 1,049,432,105 - 462,047,875 1,240,468,968 443,412,233 405,106,897 1,662,603,605 1,871,949,977 847,774,289 928,936,117 675,858,105 587,886,652 21,751 326,850 42,005 488,858,930 496,441,092 427,860 52,122,099 58,185,573 6,208,472 1,294,740 74,095,449 88,314,071 355,485 15,027 486,605 19,612 - - - - 3,620 2,292,399 7,875,015 - 6,687 2,568,364 9,132,062 - 29,497,710 32,798,603 - - - - - - - - - - 1,856,386 2,463,635 905,374,088 1,055,986,162 16,427,134 17,651,975 9,826,406 6,385,114 - - 76,703,162 97,979,622 - - - - 434,628,262 400,372,440 20,960,307 24,072,231 784,307,032 842,119,957 666,031,699 581,501,538 - - - - - - - - 44,489,570 50,971,226 7,371,379 24,658,469 - - - - - - - - - - - - - - - - - - - - - - - - - - 4,091,696,107 5,034,348,611 488,884,301 496,520,403 54,741,348 61,369,954 88,178,936 106,105,806 355,485 486,605 491,519,716 574,400,438 933,484,014 1,097,100,837 76,703,162 100,220,100 1,905,927,300 2,522,222,675 - - 51,901,845 75,921,793 TOTAL ASSETS 1,531,004,808 1,541,234,585 634,853,693 814,216,073 2,315,945,976 2,460,970,620 1,055,327,964 1,183,232,390 792,229,768 730,818,485 (4,417,595) (13,369,202) 6,324,944,614 6,717,102,951 The eliminations column corresponds to transactions between companies in different lines of business and country, primarily purchases and sales of energy and services. 505 Consolidated Financial Statements                                                                                                                                                              Country Chile Argentina Brazil Colombia Peru Eliminations Total - - - 4,501,006 - 11,615,705 - - - - - - 27,991,524 - Liabilities associated with groups of assets or disposal groups held for sale or distribution to owners 417,021,351 - LIABILITIES AND EQUITY CURRENT LIABILITIES Other current financial liabilities Trade and other current payables Current accounts payable to related companies Other current provisions Current tax liabilities Current provisions for employee benefits Other current non-financial liabilities 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 418,047,564 244,981,388 431,630,046 739,412,769 552,804,640 382,669,070 247,749,856 337,839,518 192,540,953 165,061,350 (4,417,595) (13,369,202) 1,838,355,464 1,856,594,893 92,682 293,820 636,116 3,595 133 526,559 6,842,312 134,704,079 78,327,002 34,994,868 1,910,613 35,806,842 32,472,313 117,620,794 402,486,702 670,451,782 111,172,127 1,192,017 1,448,331 71,623 27,424,768 32,678,820 383,345,351 278,869,512 169,494,726 233,909,354 81,443,952 102,523,673 32,611,195 3,897,216 16,017,544 76,976,179 26,092,527 8,896,631 (4,417,595) (13,369,202) 72,131,804 189,021,282 2,144,014 3,335,096 5,380,567 7,377,900 10,926,878 21,428,954 9,415,281 2,737,460 7,784,348 2,556,173 18,240,243 433,197 8,250,191 35,533,294 10,828,212 35,966,491 76,925,875 1 - - - - - - - - - - - - - - - - - - 371,317 - - - - - - 34,940,876 38,817,394 1,887,226 1,402,580 1,927,989 1,739,543 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 206,125,030 119,552,373 1,037,064,551 1,403,375,115 45,879,822 51,247,787 24,166,415 16,472,461 - 417,021,351 883,297,767 1,153,615,811 178,027,558 155,526,685 157,179,286 141,808,620 162,308,328 34,940,876 61,859,841 163,123,897 213,666,598 1,402,580 23,851,389 - 2,926,808,566 3,089,679,406 - 2,926,808,566 3,089,679,406 860,651,565 872,231,352 1,414,711,314 1,384,094,891 3,547,484 3,965,297 647,898,203 829,387,866 - - - - - - - - - - - - - - - - - - NON-CURRENT LIABILITIES 299,654 72,612,722 174,966,573 137,796,785 832,749,665 930,337,149 281,940,695 358,873,770 269,823,997 271,208,226 - 1,559,780,584 1,770,828,652 Other non-current financial liabilities Trade and other non-current payables Non-current accounts payable to related companies Other long-term provisions Deferred tax liabilities - - - - - - - - - - 154,803,475 120,497,550 - - 2,808,816 10,544,604 8,468,074 23,042,447 - - 421,538,033 625,423,679 230,851,899 299,710,462 230,907,835 228,481,670 22,852,766 35,029,135 157,179,286 127,402,352 147,154,456 3,547,501 3,635,352 314,163 241,630 Non-current provisions for employee benefits 299,654 24,649,613 9,618,494 8,831,161 103,777,228 122,729,879 47,541,295 55,527,956 Other non-current non-financial liabilities - 22,111,846 - - EQUITY 1,112,657,590 1,223,640,475 28,257,074 (62,993,481) 930,391,671 1,147,964,401 525,637,413 486,519,102 329,864,818 294,548,909 Equity attributable to shareholders of Enersis Américas 1,112,657,590 1,223,640,475 28,257,074 (62,993,481) 930,391,671 1,147,964,401 525,637,413 486,519,102 329,864,818 294,548,909 Issued capital Retained earnings Share premium Other reserves 367,928,682 367,928,682 47,061,353 61,605,286 312,041,595 398,597,876 2,953,410 3,367,331 130,666,525 40,732,177 1,225,045,537 1,227,190,356 (20,697,376) (127,076,910) 82,104,937 135,984,405 104,750,330 34,989,277 23,507,886 113,007,763 566,302 566,302 - - - 2,981,182 3,398,995 - - (480,882,931) (372,044,865) 1,893,097 2,478,143 536,245,139 613,382,120 414,952,491 444,763,499 175,690,407 140,808,969 Total Liabilities and Equity 1,531,004,808 1,541,234,585 634,853,693 814,216,073 2,315,945,976 2,460,970,620 1,055,327,964 1,183,232,390 792,229,768 730,818,485 (4,417,595) (13,369,202) 6,324,944,614 6,717,102,951 The eliminations column corresponds to transactions between companies in different lines of business and country, primarily purchases and sales of energy and services. 506 2015 Annual Report Enersis                                                                                                                                                                     LIABILITIES AND EQUITY CURRENT LIABILITIES Other current financial liabilities Trade and other current payables Current accounts payable to related companies Other current provisions Current tax liabilities Current provisions for employee benefits Other current non-financial liabilities Liabilities associated with groups of assets or disposal groups held for sale or distribution to owners 417,021,351 Other non-current financial liabilities Trade and other non-current payables Non-current accounts payable to related companies Other long-term provisions Deferred tax liabilities Other non-current non-financial liabilities 117,620,794 402,486,702 670,451,782 111,172,127 1,192,017 1,448,331 71,623 27,424,768 32,678,820 4,501,006 11,615,705 27,991,524 92,682 293,820 636,116 3,595 - - - - - - - - - - - - - - 23,042,447 22,111,846 - - - - - - - - - - - - - - - - - The eliminations column corresponds to transactions between companies in different lines of business and country, primarily purchases and sales of energy and services. Country Chile Argentina Brazil Colombia Peru Eliminations Total 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 418,047,564 244,981,388 431,630,046 739,412,769 552,804,640 382,669,070 247,749,856 337,839,518 192,540,953 165,061,350 (4,417,595) (13,369,202) 1,838,355,464 1,856,594,893 133 526,559 6,842,312 134,704,079 78,327,002 34,994,868 1,910,613 35,806,842 32,472,313 383,345,351 278,869,512 169,494,726 233,909,354 81,443,952 102,523,673 - - - - 206,125,030 119,552,373 1,037,064,551 1,403,375,115 32,611,195 3,897,216 16,017,544 76,976,179 26,092,527 8,896,631 (4,417,595) (13,369,202) 72,131,804 189,021,282 2,144,014 3,335,096 5,380,567 7,377,900 10,926,878 1 - 21,428,954 9,415,281 2,737,460 - - - 7,784,348 2,556,173 - 18,240,243 433,197 8,250,191 35,533,294 10,828,212 - - - - - 1 - - - NON-CURRENT LIABILITIES 299,654 72,612,722 174,966,573 137,796,785 832,749,665 930,337,149 281,940,695 358,873,770 269,823,997 271,208,226 154,803,475 120,497,550 421,538,033 625,423,679 230,851,899 299,710,462 230,907,835 228,481,670 22,852,766 35,029,135 157,179,286 - - - - - 371,317 - - - 2,808,816 10,544,604 8,468,074 127,402,352 147,154,456 3,547,501 3,635,352 314,163 241,630 - - - - 34,940,876 38,817,394 Non-current provisions for employee benefits 299,654 24,649,613 9,618,494 8,831,161 103,777,228 122,729,879 47,541,295 55,527,956 - - - - 1,887,226 1,402,580 1,927,989 1,739,543 EQUITY 1,112,657,590 1,223,640,475 28,257,074 (62,993,481) 930,391,671 1,147,964,401 525,637,413 486,519,102 329,864,818 294,548,909 Equity attributable to shareholders of Enersis Américas 1,112,657,590 1,223,640,475 28,257,074 (62,993,481) 930,391,671 1,147,964,401 525,637,413 486,519,102 329,864,818 294,548,909 Issued capital Retained earnings Share premium Other reserves 367,928,682 367,928,682 47,061,353 61,605,286 312,041,595 398,597,876 2,953,410 3,367,331 130,666,525 40,732,177 1,225,045,537 1,227,190,356 (20,697,376) (127,076,910) 82,104,937 135,984,405 104,750,330 34,989,277 23,507,886 113,007,763 566,302 566,302 - - 2,981,182 3,398,995 - - (480,882,931) (372,044,865) 1,893,097 2,478,143 536,245,139 613,382,120 414,952,491 444,763,499 175,690,407 140,808,969 - - - - - - - - - - - - - - - - - - - - - - - - 45,879,822 51,247,787 24,166,415 16,472,461 - - 35,966,491 76,925,875 417,021,351 - - 1,559,780,584 1,770,828,652 - - - - - - - 883,297,767 1,153,615,811 178,027,558 155,526,685 157,179,286 - 141,808,620 162,308,328 34,940,876 61,859,841 163,123,897 213,666,598 1,402,580 23,851,389 - 2,926,808,566 3,089,679,406 - 2,926,808,566 3,089,679,406 - - - - 860,651,565 872,231,352 1,414,711,314 1,384,094,891 3,547,484 3,965,297 647,898,203 829,387,866 Total Liabilities and Equity 1,531,004,808 1,541,234,585 634,853,693 814,216,073 2,315,945,976 2,460,970,620 1,055,327,964 1,183,232,390 792,229,768 730,818,485 (4,417,595) (13,369,202) 6,324,944,614 6,717,102,951 507 Consolidated Financial Statements                                                                                                                                                                    Country Chile Argentina Brasil Colombia Peru Eliminations Total Distribution STATEMENT OF COMPREHENSIVE INCOME REVENUES AND OTHER OPERATING INCOME Revenues Energy sales Other sales Other services rendered Other operating income RAW MATERIALS AND CONSUMABLES USED Energy purchases Fuel consumption Transportation expenses Other miscellaneous supplies and services CONTRIBUTION MARGIN Other work performed by the entity and capitalized Employee benefits expense Other expenses 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 607,344,916 371,411,786 528,653,053 1,836,864,322 1,969,226,185 1,634,111,790 884,467,266 982,770,698 852,780,069 562,046,426 478,699,891 413,911,453 278,475,279 222,534,863 268,473,425 1,606,176,000 1,784,233,025 1,462,498,140 876,948,863 980,294,259 815,252,120 559,556,527 476,564,658 395,765,288 261,053,382 204,714,773 252,621,412 1,509,823,358 1,696,855,326 1,388,685,125 723,092,894 808,454,612 697,374,115 528,051,398 447,642,884 370,947,952 460,133 523,507 361,681 16,073,260 16,820,481 - 217,554 15,149 3,280,645 2,772,195 3,781,787 6,136 16,961,764 17,296,583 15,490,332 80,279,382 70,557,218 73,813,015 153,638,415 171,824,498 114,597,360 28,732,934 25,139,987 24,811,200 328,869,637 148,876,923 260,179,628 230,688,322 184,993,160 171,613,650 7,518,403 2,476,439 37,527,949 2,489,899 2,135,233 18,146,165 (157,387,237) (161,995,240) (169,802,328) (1,386,390,872) (1,313,723,580) (1,060,194,360) (500,570,712) (547,593,754) (464,474,672) (379,015,102) (315,115,521) (266,450,403) (155,612,243) (160,940,088) (168,486,826) (1,068,487,043) (1,029,857,439) (686,576,752) (375,946,940) (416,564,592) (349,818,265) (351,596,619) (292,686,474) (241,896,637) - - - - - - - - - (720,575) (1,055,152) (1,194,862) (63,516,659) (78,999,828) (64,041,259) (82,836,069) (88,136,414) (78,964,131) - - - - (1,054,419) - (120,640) (254,387,170) (204,866,313) (309,576,349) (41,787,703) (42,892,748) (35,692,276) (27,418,483) (22,429,047) (24,553,766) (324,647,775) (270,188,108) (369,943,031) 449,957,679 209,416,546 358,850,725 450,473,450 655,502,605 573,917,430 383,896,554 435,176,944 388,305,397 183,031,324 163,584,370 147,461,050 1,467,359,007 1,463,680,465 1,468,534,602 34,701,198 23,153,744 18,108,177 9,135,951 11,202,763 13,079,321 4,448,164 4,446,424 3,809,445 4,282,006 3,300,324 2,798,463 (371,072) (1,012,453) (254,169) (995,041) (233,845) (226,741,261) (142,343,373) (121,588,649) (79,431,903) (83,882,323) (80,791,303) (36,740,363) (35,616,518) (33,308,955) (22,398,764) (21,542,237) (20,112,810) (947,801) (138,623,389) (128,124,044) (118,511,278) (150,045,257) (154,016,112) (135,153,017) (56,460,916) (67,631,351) (55,855,565) (26,536,628) (26,098,988) (21,220,123) GROSS OPERATING RESULT (1,383,525) (1,249,210) (1,181,646) 119,294,227 (37,897,127) 136,858,975 230,132,241 428,806,933 371,052,431 295,143,439 336,375,499 302,950,322 138,377,938 119,243,469 108,926,580 781,564,320 845,279,564 918,606,662 Depreciation and amortization expense Impairment losses (reversal of impairment losses) recognized in profit or loss - - - - - - (13,229,654) (10,772,411) (12,909,107) (71,857,411) (99,250,848) (86,883,098) (59,475,177) (71,998,972) (61,825,005) (29,074,143) (26,510,068) (24,005,738) (173,636,385) (208,532,299) (185,622,948) (2,289,187) (2,559,659) (1,951,710) (30,940,802) (28,330,530) (50,553,285) (80,720) (2,401,454) (236,860) (1,598,702) (1,747,322) (816,132) (34,909,411) (35,038,965) (53,557,987) OPERATING INCOME (1,383,525) (1,249,210) -1,181,646 103,775,386 (51,229,197) 121,998,158 127,334,028 301,225,555 233,616,048 235,587,542 261,975,073 240,888,457 107,705,093 90,986,079 84,104,710 - 573,018,524 601,708,300 679,425,727 FINANCIAL RESULT (1,116,601) (3,304,228) (577,524) (3,942,519) (38,408,032) (13,178,990) (48,588,988) (174,878,226) (2,582,536) (27,459,741) (26,624,088) (23,123,001) (16,772,560) (11,494,113) (14,976,086) 2,000,172 (53,882) (97,880,409) (252,708,515) (54,492,019) Financial income Cash and cash equivalents Other Financial income Financial costs Bank borrowings Secured and unsecured obligations 236,600 236,600 - 2,780 2,780 9,491 9,491 65,153,401 28,970,378 32,944,854 102,075,187 45,864,512 110,285,525 6,745,819 7,242,116 7,279,595 3,221,357 2,830,626 2,340,150 - 177,432,364 84,910,412 152,859,615 1,303,146 532,645 493,354 2,924,921 9,641,862 10,746,703 3,452,375 3,377,089 3,705,481 892,016 1,063,623 493,944 63,850,255 28,437,733 32,451,500 99,150,266 36,222,650 99,538,822 3,293,444 3,865,027 3,574,114 2,329,341 1,767,003 1,846,206 (475,563) (16,277) (17,365) (70,851,224) (66,547,390) (45,795,956) (150,058,877) (221,272,601) (113,177,408) (34,773,430) (33,912,253) (30,335,481) (19,294,082) (14,065,160) (16,965,296) - (275,453,176) (335,813,681) (206,291,506) (974) - (5,338,424) (3,001,623) (4,858,103) (17,467,056) (7,139,131) (2,131,807) (91,262) - 892,016 (1,433,806) (1,582,598) - - (49,470,132) (43,100,513) (38,857,338) (26,704,160) (24,014,571) (20,372,526) (13,458,940) (9,580,529) Other (474,589) (16,277) (17,365) (65,512,800) (63,545,767) (40,937,853) (83,121,689) (171,032,957) (72,188,263) (8,069,270) (9,806,420) (9,962,955) (20,186,098) 827,586 (5,802,169) 12-31-2013 ThCh$ 3,890,722,930 3,802,108,560 3,429,456,365 3,321,156,669 3,463,626,805 2,941,988,973 3,022,021,032 3,157,667,595 2,709,628,604 19,523,142 21,140,924 3,648,462 279,612,495 284,818,286 228,711,907 569,566,261 338,481,755 487,467,392 (2,423,363,923) (2,338,428,095) (1,960,921,763) (1,951,642,845) (1,900,048,593) (1,446,778,480) - - - (147,073,303) (168,191,394) (144,200,252) 52,567,319 42,103,255 37,795,406 (365,683,363) (283,638,620) (256,035,562) (372,678,643) (376,865,536) (331,687,784) 8,809,058 14,617,999 15,448,973 168,623,306 70,292,413 137,410,642 (21,914,438) (11,665,822) (8,572,508) (76,174,292) (80,574,024) (68,810,393) (177,364,446) (243,573,835) (128,908,605) 1,240 1,579 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 567,870 1,558,367 (990,497) - - - - - - - - - - - - - Income before tax (2,500,126) (4,553,438) (1,759,170) 99,980,517 (89,602,508) 108,861,400 71,986,345 126,347,329 233,795,323 208,751,937 237,958,538 218,769,146 91,535,127 79,523,876 70,033,834 2,000,172 (53,882) 469,753,800 351,673,969 629,646,651 Income tax (11,228,559) (7,668,386) (4,503,199) (463,471) 3,792,056 (10,685,347) (10,849,463) (18,559,097) (66,562,048) (84,883,204) (82,240,147) (75,302,320) (27,924,718) (19,790,239) (19,520,534) - (135,349,415) (124,465,813) (176,573,448) Net income attributable to: (13,728,685) (12,221,824) (6,262,369) 99,517,046 (85,810,452) 98,176,053 61,136,882 107,788,232 167,233,275 123,868,733 155,718,391 143,466,826 63,610,409 59,733,637 50,513,300 2,000,172 (53,882) 334,404,385 227,208,156 453,073,203 Shareholders of Enersis Américas 139,672,809 134,065,799 114,054,872 - - - - 139,672,809 134,065,799 114,054,872 Non-controlling interests 125,944,124 121,843,975 107,792,503 99,517,046 (85,810,452) 98,176,053 61,136,882 107,788,232 167,233,275 123,868,733 155,718,391 143,466,826 63,610,409 59,733,637 50,513,300 2,000,172 (53,882) 474,077,194 361,273,955 567,128,075 STATEMENT OF CASH FLOW Cash flow from (used in) operating activities Cash flow from (used in) investment activities Cash flows from (used in) financing activities País Chile Argentina Brazil Colombia Peru Eliminations Total 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 192,068,742 36,094,225 136,491,828 243,657,253 188,056,795 148,438,912 165,632,490 243,585,176 286,604,054 235,309,844 218,066,750 204,679,719 109,115,394 83,447,069 79,288,813 (184,396) 91,870 32,942 945,599,327 769,341,885 855,536,268 (64,199,658) 13,004,063 (25,261,494) (208,791,432) (180,592,386) (126,534,530) (269,722,111) (239,357,913) (152,257,499) (112,561,292) (16,909,564) (103,377,146) (114,212,151) (57,451,165) (60,260,217) (17,922,661) (32,662,053) (20,661,272) (787,409,305) (513,969,018) (488,352,158) (106,554,830) (64,578,477) (95,280,198) (8,169,660) (9,632,579) (18,504,534) 78,329,447 623,587 (112,549,985) (165,636,704) (169,208,067) (115,866,665) (41,319,512) (10,068,877) (5,502,637) 18,107,057 32,570,183 20,628,331 (225,244,202) (220,294,230) (327,075,688) The eliminations column corresponds to transactions between companies in different lines of business and country, primarily purchases and sales of energy and services. 508 2015 Annual Report Enersis (2,354,458) (5,545,283) (2,477,656) (2,359,532) (1,559,984) (1,070,016) (2,399,813) (304,091) (113,526) (301,672) (170,438) (1,676,449) (1,034,773) (1,155,463) 382,438 2,635,612 546,118 (9,398,311) (6,110,191) (4,440,981) - - - - - - - - - - - - 34,434 34,721 42,232 - 113,216 - 113,216 - - - - - - (6,758,695) - (6,758,695) - - - - - 2,761,811 - 2,761,811 752,622 2,561,039 932,917 787,056 2,595,760 975,149 (128,486) 46,514 70,773 602,594 31,910 905,210 (6,171,371) 78,424 3,737,794 - - (128,486) 46,514 70,773 602,594 31,910 905,210 (6,171,371) 78,424 3,737,794 - 529,863 833,954 - 309,347 422,873 46,049 347,721 (67,115) 103,323 (699,835) (259,579) (350,940) 976,614 775,194 804,523 (382,438) 2,000,172 (635,440) (53,882) (600,000) 139,163 (1,806,825) (1,060,128) 9,537,474 4,303,366 3,380,853 Positive Negative Share of profit of associates accounted for using the equity method Other gains (losses) Gain (loss) from other investments Gain (loss) from the sale of property, plant and equipment Results from indexed assets and liabilities 1,240 1,579 - - - - - 1,755,304 4,114,836 (831,020) 728,964 (327,888) (605,298) 742,128 1,794,515 Foreign currency exchange differences (878,878) (3,292,310) (569,650) 1,475,580 2,252,973 1,908,006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Country Chile Argentina Brasil Colombia Peru Eliminations Total STATEMENT OF COMPREHENSIVE INCOME 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 12-31-2013 ThCh$ Distribution - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3,890,722,930 3,802,108,560 3,429,456,365 3,321,156,669 3,463,626,805 2,941,988,973 3,022,021,032 3,157,667,595 2,709,628,604 19,523,142 21,140,924 3,648,462 279,612,495 284,818,286 228,711,907 569,566,261 338,481,755 487,467,392 (2,423,363,923) (2,338,428,095) (1,960,921,763) (1,951,642,845) (1,900,048,593) (1,446,778,480) - - - (147,073,303) (168,191,394) (144,200,252) (324,647,775) (270,188,108) (369,943,031) 1,467,359,007 1,463,680,465 1,468,534,602 52,567,319 42,103,255 37,795,406 (365,683,363) (283,638,620) (256,035,562) (372,678,643) (376,865,536) (331,687,784) 781,564,320 845,279,564 918,606,662 (173,636,385) (208,532,299) (185,622,948) (34,909,411) (35,038,965) (53,557,987) - 573,018,524 601,708,300 679,425,727 2,000,172 (53,882) (97,880,409) (252,708,515) (54,492,019) - - - - 177,432,364 84,910,412 152,859,615 8,809,058 14,617,999 15,448,973 168,623,306 70,292,413 137,410,642 - (275,453,176) (335,813,681) (206,291,506) (21,914,438) (11,665,822) (8,572,508) (76,174,292) (80,574,024) (68,810,393) (177,364,446) (243,573,835) (128,908,605) - 1,240 1,579 - 2,000,172 (635,440) (53,882) (600,000) 139,163 (1,806,825) (1,060,128) 9,537,474 4,303,366 3,380,853 REVENUES AND OTHER OPERATING INCOME 607,344,916 371,411,786 528,653,053 1,836,864,322 1,969,226,185 1,634,111,790 884,467,266 982,770,698 852,780,069 562,046,426 478,699,891 413,911,453 278,475,279 222,534,863 268,473,425 1,606,176,000 1,784,233,025 1,462,498,140 876,948,863 980,294,259 815,252,120 559,556,527 476,564,658 395,765,288 261,053,382 204,714,773 252,621,412 1,509,823,358 1,696,855,326 1,388,685,125 723,092,894 808,454,612 697,374,115 528,051,398 447,642,884 370,947,952 460,133 523,507 361,681 16,073,260 16,820,481 217,554 15,149 3,280,645 2,772,195 3,781,787 6,136 16,961,764 17,296,583 15,490,332 80,279,382 70,557,218 73,813,015 153,638,415 171,824,498 114,597,360 28,732,934 25,139,987 24,811,200 328,869,637 148,876,923 260,179,628 230,688,322 184,993,160 171,613,650 7,518,403 2,476,439 37,527,949 2,489,899 2,135,233 18,146,165 RAW MATERIALS AND CONSUMABLES USED (157,387,237) (161,995,240) (169,802,328) (1,386,390,872) (1,313,723,580) (1,060,194,360) (500,570,712) (547,593,754) (464,474,672) (379,015,102) (315,115,521) (266,450,403) (155,612,243) (160,940,088) (168,486,826) (1,068,487,043) (1,029,857,439) (686,576,752) (375,946,940) (416,564,592) (349,818,265) (351,596,619) (292,686,474) (241,896,637) - - - - - - - (720,575) (1,055,152) (1,194,862) (63,516,659) (78,999,828) (64,041,259) (82,836,069) (88,136,414) (78,964,131) - - - - - - (1,054,419) (120,640) (254,387,170) (204,866,313) (309,576,349) (41,787,703) (42,892,748) (35,692,276) (27,418,483) (22,429,047) (24,553,766) CONTRIBUTION MARGIN 449,957,679 209,416,546 358,850,725 450,473,450 655,502,605 573,917,430 383,896,554 435,176,944 388,305,397 183,031,324 163,584,370 147,461,050 Other work performed by the entity and capitalized Employee benefits expense Other expenses (371,072) (1,012,453) (254,169) (995,041) 34,701,198 23,153,744 18,108,177 9,135,951 11,202,763 13,079,321 4,448,164 4,446,424 3,809,445 4,282,006 3,300,324 2,798,463 (233,845) (226,741,261) (142,343,373) (121,588,649) (79,431,903) (83,882,323) (80,791,303) (36,740,363) (35,616,518) (33,308,955) (22,398,764) (21,542,237) (20,112,810) (947,801) (138,623,389) (128,124,044) (118,511,278) (150,045,257) (154,016,112) (135,153,017) (56,460,916) (67,631,351) (55,855,565) (26,536,628) (26,098,988) (21,220,123) GROSS OPERATING RESULT (1,383,525) (1,249,210) (1,181,646) 119,294,227 (37,897,127) 136,858,975 230,132,241 428,806,933 371,052,431 295,143,439 336,375,499 302,950,322 138,377,938 119,243,469 108,926,580 (13,229,654) (10,772,411) (12,909,107) (71,857,411) (99,250,848) (86,883,098) (59,475,177) (71,998,972) (61,825,005) (29,074,143) (26,510,068) (24,005,738) (2,289,187) (2,559,659) (1,951,710) (30,940,802) (28,330,530) (50,553,285) (80,720) (2,401,454) (236,860) (1,598,702) (1,747,322) (816,132) OPERATING INCOME (1,383,525) (1,249,210) -1,181,646 103,775,386 (51,229,197) 121,998,158 127,334,028 301,225,555 233,616,048 235,587,542 261,975,073 240,888,457 107,705,093 90,986,079 84,104,710 FINANCIAL RESULT (1,116,601) (3,304,228) (577,524) (3,942,519) (38,408,032) (13,178,990) (48,588,988) (174,878,226) (2,582,536) (27,459,741) (26,624,088) (23,123,001) (16,772,560) (11,494,113) (14,976,086) 236,600 236,600 2,780 2,780 9,491 9,491 65,153,401 28,970,378 32,944,854 102,075,187 45,864,512 110,285,525 6,745,819 7,242,116 7,279,595 3,221,357 2,830,626 2,340,150 1,303,146 532,645 493,354 2,924,921 9,641,862 10,746,703 3,452,375 3,377,089 3,705,481 892,016 1,063,623 493,944 (475,563) (16,277) (17,365) (70,851,224) (66,547,390) (45,795,956) (150,058,877) (221,272,601) (113,177,408) (34,773,430) (33,912,253) (30,335,481) (19,294,082) (14,065,160) (16,965,296) (974) (5,338,424) (3,001,623) (4,858,103) (17,467,056) (7,139,131) (2,131,807) - (91,262) - 892,016 (1,433,806) (1,582,598) 63,850,255 28,437,733 32,451,500 99,150,266 36,222,650 99,538,822 3,293,444 3,865,027 3,574,114 2,329,341 1,767,003 1,846,206 (474,589) (16,277) (17,365) (65,512,800) (63,545,767) (40,937,853) (83,121,689) (171,032,957) (72,188,263) (8,069,270) (9,806,420) (9,962,955) (20,186,098) 827,586 (5,802,169) (49,470,132) (43,100,513) (38,857,338) (26,704,160) (24,014,571) (20,372,526) - (13,458,940) (9,580,529) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 113,216 - 113,216 - - - - - - - - Revenues Energy sales Other sales Other services rendered Other operating income Energy purchases Fuel consumption Transportation expenses Other miscellaneous supplies and services Depreciation and amortization expense Impairment losses (reversal of impairment losses) recognized in profit or loss Financial income Cash and cash equivalents Other Financial income Financial costs Bank borrowings Secured and unsecured obligations Other liabilities Results from indexed assets and Positive Negative Share of profit of associates accounted for using the equity method Other gains (losses) Gain (loss) from other investments Gain (loss) from the sale of property, plant and equipment STATEMENT OF CASH FLOW Cash flow from (used in) operating activities activities activities Cash flow from (used in) investment Cash flows from (used in) financing - - - - - - - - - - - - - - - - - - - 34,434 34,721 42,232 752,622 2,561,039 932,917 - - - (6,758,695) 2,761,811 (128,486) 46,514 70,773 602,594 31,910 905,210 - - - - - (6,758,695) 2,761,811 (128,486) 46,514 70,773 602,594 31,910 905,210 Income before tax (2,500,126) (4,553,438) (1,759,170) 99,980,517 (89,602,508) 108,861,400 71,986,345 126,347,329 233,795,323 208,751,937 237,958,538 218,769,146 91,535,127 79,523,876 70,033,834 Income tax (11,228,559) (7,668,386) (4,503,199) (463,471) 3,792,056 (10,685,347) (10,849,463) (18,559,097) (66,562,048) (84,883,204) (82,240,147) (75,302,320) (27,924,718) (19,790,239) (19,520,534) Net income attributable to: (13,728,685) (12,221,824) (6,262,369) 99,517,046 (85,810,452) 98,176,053 61,136,882 107,788,232 167,233,275 123,868,733 155,718,391 143,466,826 63,610,409 59,733,637 50,513,300 Shareholders of Enersis Américas 139,672,809 134,065,799 114,054,872 - - - - Non-controlling interests 125,944,124 121,843,975 107,792,503 99,517,046 (85,810,452) 98,176,053 61,136,882 107,788,232 167,233,275 123,868,733 155,718,391 143,466,826 63,610,409 59,733,637 50,513,300 - - - - - - - - - - - - - - - - - 787,056 2,595,760 975,149 (6,171,371) 78,424 3,737,794 - - - (6,171,371) 78,424 3,737,794 2,000,172 (53,882) 469,753,800 351,673,969 629,646,651 - - (135,349,415) (124,465,813) (176,573,448) 2,000,172 (53,882) 334,404,385 227,208,156 453,073,203 - 139,672,809 134,065,799 114,054,872 2,000,172 (53,882) 474,077,194 361,273,955 567,128,075 País Chile Argentina Brazil Colombia Peru Eliminations Total 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 192,068,742 36,094,225 136,491,828 243,657,253 188,056,795 148,438,912 165,632,490 243,585,176 286,604,054 235,309,844 218,066,750 204,679,719 109,115,394 83,447,069 79,288,813 (184,396) 91,870 32,942 945,599,327 769,341,885 855,536,268 (64,199,658) 13,004,063 (25,261,494) (208,791,432) (180,592,386) (126,534,530) (269,722,111) (239,357,913) (152,257,499) (112,561,292) (16,909,564) (103,377,146) (114,212,151) (57,451,165) (60,260,217) (17,922,661) (32,662,053) (20,661,272) (787,409,305) (513,969,018) (488,352,158) (106,554,830) (64,578,477) (95,280,198) (8,169,660) (9,632,579) (18,504,534) 78,329,447 623,587 (112,549,985) (165,636,704) (169,208,067) (115,866,665) (41,319,512) (10,068,877) (5,502,637) 18,107,057 32,570,183 20,628,331 (225,244,202) (220,294,230) (327,075,688) The eliminations column corresponds to transactions between companies in different lines of business and country, primarily purchases and sales of energy and services. 509 1,240 1,579 Foreign currency exchange differences (878,878) (3,292,310) (569,650) 1,475,580 2,252,973 1,908,006 1,755,304 4,114,836 (831,020) 728,964 (327,888) (605,298) 742,128 1,794,515 529,863 833,954 309,347 422,873 (2,354,458) (5,545,283) (2,477,656) (2,359,532) (1,559,984) (1,070,016) (2,399,813) (304,091) (113,526) - 567,870 1,558,367 (990,497) (301,672) (170,438) (1,676,449) (1,034,773) (1,155,463) 382,438 2,635,612 546,118 (9,398,311) (6,110,191) (4,440,981) - - - (699,835) (259,579) (350,940) - 46,049 347,721 (67,115) 103,323 976,614 775,194 804,523 (382,438) Consolidated Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  36. Third Party Guarantees, Other Contingent Assets and Liabilities, and Other Commitments 36.1 Direct guarantees Creditor of Guarantee Mitsubishi Credit Suisse First Boston Citibank N.A. Citibank N.A./Santander Rio Edesur Deutsche Bank / Santander Benelux Debtor Company Central Costanera Central Costanera Endesa Argentina Enersis Américas S.A. Various creditors Ampla S.A. Various creditors Coelce S.A. Banco Nacional de Desarrollo Económico y Social Cien Currency 12-31-2015 12-31-2014 2015 Assets 2016 Assets 2017 Assets Guarantees Released Type of Guarantee Pledge Pledge Pledge Pledge Deposit account Pledge on collection and others Pledge on collection and others Mortgage, pledge and others Relationship Creditor Creditor Creditor Creditor Creditor Creditor Creditor Creditor Assets Committed Balance Outstanding at Combined cycle plant Combined cycle plant Cash deposit Cash deposit Type Currency ThCh$ ThCh$ ThCh$ ThCh$ Carrying amount 10,804,894 3,098,134 435,681 - ThCh$ 35,254,202 73,177,119 ThCh$ ThCh$ ThCh$ 1,183,600 3,033,750 435,681 702,470 - - Deposit account ThCh$ 11,930,477 ThCh$ 40,354,434 50,509,024 Collection accounts ThCh$ 13,927,500 ThCh$ 158,335,127 161,031,458 Collection accounts ThCh$ 8,536,202 ThCh$ 60,265,158 77,294,260 Collection accounts ThCh$ 130,927 ThCh$ 3,944,953 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - As of December 31, 2015, Enersis Américas S.A. had future energy purchase commitments amounting to ThCh$ 35,079,484,027, of which ThCh$ 24,532,787,202 corresponds to continuing operations (ThCh$ 33,344,231,316 as of December 31, 2014). 36.2 Indirect Guarantees As of December 31, 2015 and 2014, there are no indirect guarantees. 510 2015 Annual Report Enersis             36. Third Party Guarantees, Other Contingent Assets and Liabilities, and Other Commitments 36.1 Direct guarantees Creditor of Guarantee Debtor Mitsubishi Central Costanera Credit Suisse First Boston Central Costanera Citibank N.A. Endesa Argentina Citibank N.A./Santander Rio Edesur Deutsche Bank / Santander Enersis Américas Benelux S.A. Company Relationship Guarantee Type Currency Assets Committed Balance Outstanding at Combined cycle plant Combined cycle plant Cash deposit Cash deposit ThCh$ ThCh$ ThCh$ ThCh$ Carrying amount 10,804,894 3,098,134 435,681 - Currency ThCh$ ThCh$ ThCh$ ThCh$ 12-31-2015 35,254,202 1,183,600 435,681 - 12-31-2014 73,177,119 3,033,750 702,470 - Deposit account ThCh$ 11,930,477 ThCh$ 40,354,434 50,509,024 Various creditors Ampla S.A. Collection accounts ThCh$ 13,927,500 ThCh$ 158,335,127 161,031,458 Various creditors Coelce S.A. Collection accounts ThCh$ 8,536,202 ThCh$ 60,265,158 77,294,260 Banco Nacional de Desarrollo Económico y Cien Social Creditor others Collection accounts ThCh$ 130,927 ThCh$ 3,944,953 - Creditor Creditor Creditor Creditor Creditor Creditor Creditor Type of Pledge Pledge Pledge Pledge Deposit account Pledge on collection and others Pledge on collection and others Mortgage, pledge and Guarantees Released 2015 - - Assets - - 2016 - - Assets - - 2017 - - Assets - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - As of December 31, 2015, Enersis Américas S.A. had future energy purchase commitments amounting to ThCh$ 35,079,484,027, of which ThCh$ 24,532,787,202 corresponds to continuing operations (ThCh$ 33,344,231,316 as of December 31, 2014). 36.2 Indirect Guarantees 36.3 Lawsuits and Arbitrations Proceedings As of December 31, 2015 and 2014, there are no indirect guarantees. As of the date of these Consolidated Financial Statements, the most relevant litigation involving Enersis Américas and its subsidiaries are as follows: a) Continuing Operations 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 Américas S.A. (former Enersis S.A.), Chilectra S.A. (now Chilectra Chile 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$ 928,091,032), 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$ 226,385,231). The Claimants 511 Consolidated Financial Statements            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$ 72,553,271) 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 Brazil, Basilus S/A Serviços, Empreendimentos e Participações (successor to Meridional S/A Serviços, Empreendimentos e Participações from 2008) is the holder of the litigation rights that it acquired from the construction companies Mistral and CIVEL, which had a civil works contract with Centrais Elétricas Fluminense S.A. (CELF). This contract was terminated before CELF’s privatization process. Since CELF’s assets were transferred to Ampla during the privatization process, Basilus (previously Meridional) sued Ampla in 1998, arguing that the transfer of the referred assets was done in detriment of its rights. Ampla only acquired assets from CELF, but is not its legal successor since CELF, a state-owned company, still exits and maintains its legal personality. Basilus demanded payment of pending invoices and contractual penalties for termination of the civil works contract. In March 2009, the court decided in favor of Basilus, and Ampla and the State of Río de Janeiro filed the corresponding appeals. On December 15, 2009, the State Court accepted the appeal and overturned the lower court’s decision obtained by Basilus, in Ampla’s favor. Basilus filed an appeal against the resolution, which was denied. In July 2010, Basilus filed an Appeal under Specific Court Regulations (Agravo Regimental) before the Superior Court of Justice of Brazil, which also rejected the appeal in August 2010. Seeking to overturn such decision, Basilus filed a Petition for Writ of Mandamus (Mandado de Seguranca), which was also rejected. In June 2011, Basilus filed an Appeal to Amendment of Judgment (Embargos de Declaração) in order to clarify a supposed omission by the Superior Court of Justice in the decision on the Petition for Writ of Mandamus, which was not accepted by the court. Against this decision, Basilus filed an Ordinary Appeal (Recurso Ordinario) before the Superior Court of Justice (in Brasilia). On March 28, 2012 the Reporting Justice decided the Ordinary Appeal in favor of Basilus. Ampla and the State of Río de Janeiro filed an Appeal under Specific Court Regulations against the Reporting Justice’s decision, which was accepted by the First Court Room of the Superior Court of Justice on August 28, 2012, determining that the Ordinary Appeal of the Petition for Writ of Mandamus must be submitted to the decision by an en banc session and not by a single Reporting Justice. Basilus challenged the decision. The decision of August 28, 2012 was published on December 10, 2012, and the Appeal to Amendment of Judgment had been filed by Ampla and the State of Río de Janeiro to remedy the existing error in its publication, in order to avoid future divergence. Basilus filed its arguments and on May 27, 2013, the Appeal to Amendment of Judgment filed by Ampla and the State of Río de Janeiro were accepted and the error corrected. On August 25, 2015, the appeal filed by the plaintiff was rejected. The decision was published on December 10, 2015, and Basilus filed an appeal to Amendment of Judgment, which is pending resolution. The amount involved in this proceeding is estimated to be approximately R$ 1,344 million (approximately ThCh$ 244,430,592). 3. The Trade Union of Niterói, representing 2,841 employees, filed a labor claim against Ampla, requesting the payment of salary differences of 26.05% retroactive to February 1989, pursuant to the Economic Plan instituted by Law Decree No.2,335/87. In the court of first instance, the decision was partially unfavorable for Ampla. The court ordered payment of the salary differences requested retroactive to February 1, 1989, 512 2015 Annual Report Enersis and legal fees of 15% of such amount. Ampla filed several appeals, among them an Extraordinary Appeal which is currently pending. A mandatory mediation was unsuccessful. In parallel, Ampla has filed a motion for Advanced Dismissal of Enforcement (Exceção de Pré-Executividade) based on the jurisprudence of the Federal Supreme Court, which has previously declared the non-existence of a right acquired on the URP readjustment of Law Decree No.2,335/87. In addition, Ampla alleged the exception of the payment for these readjustments and, alternatively, requested the limitation of this readjustment using October 1989 salaries as a baseline. In the court of first instance, Ampla obtained the declaration of unenforceability of legal title, against which the applicant filed an appeal (Agravo de Petição). The decision was partly favorable regarding the exception of payment, but not regarding the limitation of the salary differences, using October 1989 salaries as a baseline. On September 10, 2014, the court rejected the Special Appeals (Agravo de Instrumento) presented by both parties, who filed a Petition for Clarification of the Decision (Embargos de Aclaración) against this judgment. In June 2015, Ampla presented its arguments to the Court regarding the Extraordinary Appeal filed by the Union, which were rejected by the Court. On December 16, 2015, the Extraordinary Appeal was submitted to the Federal Superior Court of Law for its judgment. The amount involved in this proceeding is estimated to be approximately R$63,678,286 (approximately ThCh$11,581,042). 4. Companhia Brasileira de Antibióticos (Cibran) filed suit against Ampla in order to receive compensation for the loss of products and raw materials, machinery breakdown, among other things that occurred as a consequence of poor service provided by Ampla between 1987 and May 1994 and compensation for moral damages. This litigation is related to other five actions filed by Cibran against Ampla based on power outages allegedly caused by Ampla in the period from 1987 to 1994, 1994 to 1999 and part of 2002. The judge decided to conduct a single expert assessment for these various claims, which was in part adverse to Ampla. Ampla challenged such assessment and requested a new expert assessment. On September 5, 2013, the judge rejected the prior petition, whereupon Ampla filed a Petition for Clarification of the Decision (Embargo de Aclaración) and subsequently a Special Appeal (Agravo de Instrumento), both of which were rejected by the court. Against the latter, Ampla filed a Special Appeal before the Superior Court of Justice, which is pending review. In September 2014, a first instance judgment in one of these proceedings ordered Ampla to pay compensation of R$ 200,000 (approximately ThCh$ 36,373) for moral damages, in addition to the payment of material damages caused due to failures in supply of service, which have to be assessed by an expert in the sentence execution stage. Ampla filed a Clarification Attachment against this ruling that was rejected. In December 2014, Ampla filed an appeal, currently pending decision. On June 1, 2015, a judgement in other of the proceeding ordered Ampla to pay moral damages of R$ 80,000 (approximately ThCh$14,534), in addition to material damages for Ampla’s failures in supply of service of R$ 95,465,103 (approximately ThCh$ 17,362,047) (plus price-level restatement and interest). Ampla filed a Petition for Clarification of the Decision (Embargo de Aclaración) against this judgement, which was rejected by the court. Ampla has filed an appeal. In the remaining proceedings, a first instance court ruling is pending. The amount involved for all these cases is estimated to be approximately R$374,014,593 million (approximately ThCh$ 68,021,285). 5. In December 2001, the Brazilian Federal Constitution was amended to apply the CONFINS tax (Contribuicao para o Financiamento da Seguridade Social), a tax levied on revenues, to electricity energy sales. The Constitution states that the changes on social contributions are effective 90 days after their publication. Ampla started to pay this COFINS tax in April 2002. However, the Brazilian Internal Revenue Service notified Ampla that the 90-day delay of entry into force is applied to statutory amendments, but are not applicable to constitutional amendments, which are effective immediately. In November 2007, the appeal filed before the Taxpayers Council (Consejo de Contribuyentes), the administrative appeals level, ruled against Ampla. In October 2008, Ampla filed a special appeal that was denied. On December 30, 2013, Ampla was notified of the decision to reject its position that the COFINS tax payments were not due for the period from December 2001 to March 2002 based on the Constitution providing that legislative changes are effective 90 days after their publication. Ampla filed 513 Consolidated Financial Statementsa judicial proceeding to obtain a certification of fiscal good standing in order to continue receiving public funds and was required to post a bond for the tax debt. Under the new standard on surety bonds published in March 2014, the bond amount must be 20% rather than the previous 30%, of the tax debt and the bond was reduced to € 44 million. Ampla submitted the new surety bond, complying with the new requirements. The Brazilian Treasury accepted the surety bond and granted the certification of fiscal good standing. The Brazilian Treasury submitted the fiscal execution and Ampla opposed its defense in July 2014. It is not necessary to submit a new surety bond since the bond posted to obtain the certification of fiscal good standing can be used for this proceeding. Pending of resolution. The amount involved in this case is estimated to be approximately R$149 million (approximately ThCh$ 27,098,332). 6. In August 1996, Ampla obtained a favorable ruling granting it an exemption from paying the COFINS tax for the period prior to the 2001 amendment of the Brazilian Federal Constitution which expressly made electric power operations subject to the COFINS tax. Following the definite decision in favor of Ampla issued in 2010, the Brazilian Treasury attempted to overturn the 1996 decision favorable to Ampla through a recession action. Ampla refiled a suit originally filed in 1996 seeking a refund of its COFINS tax payments from April 1992 to June 1996, based on the favorable ruling in the first lawsuit described above. The suit seeking a refund of the COFINS tax had been suspended pending the resolution of the first lawsuit above. In June 2013, Ampla received a favorable decision entitling it to a refund of its COFINS tax payments for the periods requested. The Brazilian Treasury appealed the decision. In October 2014, the Court of the State of Río de Janeiro ordered a new trial since it considered that the Brazilian Treasury did not have the opportunity to manifest in the prior decision judgment. In May 2015, the Brazilian Treasury presented its final plea and in July 2015 a new favorable first instance ruling entitling Ampla to a refund of its COFINS made from 1992 to 1996 was issued. In August 2015, the tax authorities filed an appeal at the Court of the State of Río de Janeiro. The sum Ampla has requested as a tax refund amounts to R$167 million (approximately ThCh$30,371,956). 7. In order to fund the purchase of Coelce in 1998, Ampla issued long-term debt abroad through securities called Fixed Rate Notes (FRNs) which were governed by a special tax regime whereby interest payments received by non-resident holders were exempt from taxation in Brazil, as long as the debt was issued with a minimum maturity of 8 years. In 2005, the Brazilian IRS notified Ampla the special tax regime did not apply based on its understanding that prepayments were made before the stated maturity, due to the fact that Ampla had received financing in Brazil which was allocated to the FRN holders. Ampla argues that these two transactions are independent and legally valid. The non-application of the special tax regime means that Ampla would have failed to comply with its obligation to retain the tax and to record it as interest payments made to non-resident holders. The tax resolution was appealed and in 2007 the Taxpayers Council (Consejo de Contribuyentes), the administrative appeals level, annulled it. However, the Brazilian Internal Revenue Service (responsible for tax collection and compliance with tax laws) contested this decision before the Superior Chamber of Fiscal Resources (Cámara Superior de Recursos Fiscales), the final administrative appeals level, and on November 6, 2012, it ruled against Ampla. The decision was notified to Ampla on December 21, 2012. On December 28, 2012, Ampla filed a Petition for Clarification of the Decision (Embargo de Aclaración) before the Superior Chamber of Fiscal Resources in order to obtain a final resolution regarding contradictory points of the decision and to incorporate in it the relevant defense arguments that were omitted. The petition was denied. As a consequence, Ampla filed a judicial proceeding to obtain a certification of fiscal good standing in order to continue receiving public funds. Ampla was required to post a bond for the tax debt. Under the new standard on surety bonds published in March 2014, the bond amount must be 20%, rather than the previous 30%, of the tax debt and the bond was reduced to € 331 million. Ampla submitted the new surety bond, complying with the new requirements. The Brazilian Treasury accepted the surety bond and granted the certification of fiscal good standing. The Brazilian Treasury submitted the fiscal execution and Ampla opposed its defense on June 27, 2014. It is not necessary to submit a new surety bond since the bond posted to obtain the certification 514 2015 Annual Report Enersis of fiscal good standing can be used for this proceeding. It is important to mention that the final unfavorable decision of the Superior Chamber of Fiscal Resources could lead to a possible criminal proceeding against some employees and managers of Ampla. The amount involved in this case is estimated to be approximately R$ 1,128 million (approximately ThCh$ 205,147,104). 8. Coelce bills the “low income” consumer with a social discount that determines a final rate called “baja renta” (low income). The State compensates Coelce for this discount as a state subsidy. The ICMS (a tax similar to the Chilean Value Added Tax) is transferred (deducted) by Coelce over the amount of the normal rate (without the discount). On the other hand, the State of Ceará establishes that the ICMS does not apply to billings that fluctuate between 0 and 140 kW/h. Also, Coelce, in order to calculate the ICMS deducible amount in reference to the total ICMS supported in energy purchases must apply the “pro rata” rule. The rule states that the percentage that represents revenues subject to ICMS over the total income (whether or not subject to ICMS). Coelce considers, for the purpose of its inclusion in the pro rata denominator, that the revenue not subject to ICM is the result of applying the end sales price of energy (price after the subsidy is discounted) and the Brazilian IRS holds that the income not subject to ICMS is the price of the normal rate (without discounting the subsidy). The Brazilian IRS’s position implies a lower ICMS deduction percentage. The Brazilian Treasury view is that the “ICMS pro rata” calculation should be based on the normal rate value in “low income” energy sales cases, instead of the reduced rate that Coelce uses. The Brazilian Treasury criteria results in a greater ICMS non-recoverable percentage, which results in a higher ICMS payable. Coelce argues that its calculation is correct, since it must be used in the “ICMS Pro Rata” calculation, reducing the value of the ICMS rate since that is the accurate value of the energy sales transaction (the ICMS’s base is the transaction value of the merchandise sold). In reference to the 2005 and 2006 litigation, after the unfavorable decision in the administrative process, Coelce is waiting for the filing of the State’s judicial execution. However, Coelce has already presented the banking guarantee in order to assure its right to obtain the Regular Tax Certification. In reference to the 2007, 2008 and 2009 litigation, Coelce filed the administration defense, and the decision is pending. In reference to 2010, the proceeding was received in January 2015 and Coelce filed first instance administrative defense. The next step is to continue with the defense of judicial and administrative processes. The amount of these claims is R$ 123 million (approximately ThCh$ 22,369,764). 9.- In 2002, the State of Rio de Janeiro issued a decree stating that the ICMS (a tax similar to the Chilean Value Added Tax) should be paid and filed on the 10th, 20th and 30th days of the same month of the tax accrual. Ampla continued paying ICMS in accordance with the previous system (filing within five days after the end of the month of its accrual) and did not adopt the new system between September 2002 and February 2005 due to cash flow issues. Additionally, Ampla filed a lawsuit to dispute the constitutionality of the new filing requirement. These lawsuits were unsuccessful, and Ampla has filed suit alleging constitutional violations before the Brazilian Supreme Federal Tribune. Since March 2005, Ampla has been paying the ICMS according to the new system. In September 2005, the IRF imposed on Ampla a penalty fee and interests due to the delay in filling the ICMS as set forth in the aforementioned decree of 2002. Ampla appealed the resolution before the Administrative Courts, based on the fiscal Amnesty Laws of the State of Río de Janeiro published in 2004 and 2005 (forgiving interest and penalties if the taxpayer paid the taxes due). Ampla alleges that if the aforementioned tax amnesties are found to be inapplicable to it, the law would punish taxpayers that are delayed only a few days in their tax payments (as in the case of Ampla) more harshly than those who failed to pay their taxes and later formally adopted the various tax amnesties and thus, regulate their tax situation through the filing of overdue unpaid taxes. On May 9, 2012, The “En Banc Council” (a special body within the Taxpayers Council, representing the last administrative instance) issued a judgment against Ampla. The decision was notified on August 29, 2012. Ampla appealed to the State Public Treasury (Hacienda Pública Estadual) using a special review procedure 515 Consolidated Financial Statementsbased on the equity principle, before the Governor of the State of Río de Janeiro. The appeal has not been resolved and, therefore, the tax should be suspended. However, the State of Río de Janeiro recorded the tax due in the Public Register as if demandable and, therefore, on November 12, 2012, Ampla was obliged to post a surety bond in the amount of € 101 million (R$ 293 million) in order to receive a certification of fiscal good standing to continue receiving public funds. On June 4, 2013, in a decision of second instance, the State Public Treasury obtained a ruling against Ampla’s surety bond. In September 2013, Ampla filed a letter of guarantee to substitute for the surety bond rejected by the court. However, Ampla reiterated to the attorney of the State, the petition of review, which is still pending decision. Despite this, the State Public Treasury submitted the fiscal execution and Ampla opposed its defense. It is not necessary to submit a new surety bond since the bond posted to obtain the certification of fiscal good standing can be used for this proceeding. In June 2015, the Supreme Court of Brasilia issued a favorable ruling for Ampla for a lawsuit filed in 2002 to dispute the constitutionality of the new filing requirements. This resolution will lead to the suspension of the collection procedures of penalties and interests, since the tax is already paid. The State of Río de Janeiro might eventually appeal; but its likelihood of winning are very limited as the outcome of the procedure was issued by the plenary. Also, the sentence will mean the release of the guarantee. The decision was published on October 2, 2015 and the Brazilian Treasury has 10 days to appeal. Once elapsed the period the resolution becomes final, and at that time the resolution will be presented to the administrative collection body (process). The State Public Treasury did not file an appeal and on October 25, 2015, Ampla presented to the special collection body the favorable resolution to it issued by the Brasilia Supreme Court. The amount involved in this proceeding is R$ 285 million (approximately ThCh$ 51,832,380). 10.- In 1982 and under the framework of an electricity supply network expansion in Brazilian rural areas, which was financed principally by international development banks (IDBs), the then-state-owned Companhia Energética do Ceará S.A. (Coelce) signed contracts with 13 cooperatives at the request of the Brazilian government and the IDBs to implement this project. Under the contracts, Coelce operated and maintained the assets and paid a monthly fee, which was price-level restated for inflation. These contracts were of indefinite length and failed to clearly identify the networks that were under their scope due the public nature of Coelce and the fact that they were often repaired, creating confusion between the assets that were operated and maintained by Coelce, and the assets that were owned by it. After 13 years of regular performance of the lease by making payments adjusted for inflation, in 1995 Coelce started making payments without adjustment, and continued to do so after its privatization in 1998. In view of the foregoing, some of these cooperatives have filed claims against Coelce for the payment of the adjustment for inflation. Coelce’s defense is basically grounded on the argument that the adjustment is not applicable, since the assets lacked value due to their much extended useful lives, taking into consideration their depreciation; or, alternatively, if the assets were deemed to have any value, it would be very low since Coelce performed their replacement, extension and maintenance. The amount involved in this litigation is approximately R$ 179,581,359 (approximately ThCh$ 32,660,102). One of the plaintiffs in this litigation, Cooperativa de Eletrificação Rural do V do Acarau Ltda (Coperva), filed a review action requesting expert evaluation of the issue. Once the expert report was delivered, Coelce claimed there were technical inconsistencies therein and requested a new evaluation to be conducted, but the court denied the claim and ruled the “anticipated execution of the decision”, which entails the preliminary determination of the adjusted monthly payments Coelce should have made and ordering the immediate payment of the difference between such adjusted values and the values Coelce actually paid. An appeal has been filed and a precautionary measure has been obtained in favor of Coelce, staying the anticipated execution of the decision. On April 7, 2014 a court of first instance denied Coperva’s claims. Coperva has appealed and the decision is pending. Another plaintiff in the ligation filed a review action in 2007, through which Coperva is attempting to readjust the lease value of its distribution lines (in the central region of the State of Ceará), to be calculated at 1% of the value of the asset leased, estimated by Coperva to be at R$ 15.6 million (approximately 516 2015 Annual Report Enersis ThCh$ 2,837,140). This proceeding is in a first instance and has not yet started the evidence presenting stage. The amount involved in this proceeding is estimated to be R$ 94,359,638 (approximately ThCh$ 17,160,998). In Coelce’s case, the review action was filed in 2006 and Coelce is attempting to readjust the lease value of its distribution lines (in the central region of the State of Ceará), to be calculated at 2% of the value of the asset leased. The amount involved in this proceeding is R$ 108,628,889 (approximately ThCh$ 19,756,118). This proceeding, as well as the one for Coperva, has not been advanced by the plaintiff and both are in their first instance. 11.- In October 2009, Tractebel Energía S.A. sued CIEN claiming an alleged breach of the contract “Purchase & Sale Agreement for 300 MW of Firm Capacity with related energy originating from Argentina” signed in 1999 between CIEN and Centrais Geradoras do Sul do Brasil S.A (which is now known as Tractebel Energía). Tractebel Energía asked the court to order CIEN to pay a rescission penalty of R$ 117,666,976 (approximately ThCh$ 21,399,857) plus other fines due to the unavailability of energy. The breach allegedly occurred due to a failure by CIEN to ensure sufficient capacity as contracted with Tractebel Energía during the 20-year period, which allegedly took place beginning in March 2005. In May 2010, Tractebel Energía notified CIEN via a written statement, but not judicially, its intention to exercise step-in rights of Line I (30%). The proceeding is currently at the first instance. CIEN petitioned to join this proceeding with the lawsuit filed by it against Tractebel Energía in 2001, which involves a dispute relative to exchange rates and taxing issues. The petition to join both proceedings was rejected by the court. Subsequently, CIEN filed a request to suspend the proceeding for 180 days in order to avoid potentially divergent decisions. The court ordered the suspension of proceedings for one year pending the outcome of the other lawsuit of CIEN against Tractebel Energía. The court issued a resolution extending this suspension until July 9, 2015. This proceeding has not had any changes as of to date. 12.- In 2010, Furnas Centrais Eletricas S.A. filed a suit against CIEN, based on CIEN’s alleged breach of the contract “Firm Capacity Purchase with Related Energy for the purchase of 700 MW of firm capacity with related energy originating from Argentina”, which was signed in 1998 with a term of 20 years beginning in June 2000. In its lawsuit, Furnas requested a compensation of R$ 520,800,659 (approximately ThCh$ 94,716,974) corresponding to a rescission penalty included in the contract, plus adjustments and default interests, from the date of filing of the claim until actual payment. Furnas also requested for additional penalties based on the lack of availability of the “firm power and related energy” and for other damages to be determined upon the final decision. The first trial judgment denied the claims of Furnas for CIEN’s responsibility for breach of its contractual obligations. The Court recognized the existence of force majeure because of the energy crisis in Argentina. The claimant filed an appeal against this sentence. In July 10, Cien presented its arguments to the Court regarding the appeal filed by Furnas. On the other hand, regarding the foreign language documents presented by CIEN, the judge of first instance determined that those documents would be excluded from the lawsuit, which decision was confirmed by the 12th Civil Section of the State Court. CIEN has filed a Special Appeal (Recurso Especial) against this decision, which will be decided by the Superior Court of Justice. In addition to the foregoing, CIEN received a notice from Furnas, not at the judicial headquarters, indicating that in case of rescission due to CIEN’s breach, Furnas would have the right to acquire 70% of Line I. 13.- In February 2004, two Brazilian taxes, COFINS and PIS were amended from an accrued regime (rate of 3.65% without credit deduction) to a non-accrued regime (9.25% with credit). According to legislation, long- term assets and service supply agreements performed before October 31, 2003 under “predetermined price” could remain in the accrued regime. Endesa Fortaleza had entered into energy purchase agreements that complied with the requirements, and as a result, the revenues for such agreements were initially taxed under the accrued regime, which is more advantageous. In November 2004, an administrative order was released which defines the concept of “predetermined price”. According to it, CGTF agreements (Endesa Fortaleza) must be subject to the non-accrued regime. In November 2005, a new Law clarified the “predetermined 517 Consolidated Financial Statementsprice” concept. On the basis of the 2005 legislation, the regime that should be applied to the agreements was the accrued regimen (more advantageous). Besides, the ANEEL issued a (Administrative Law) Technical Note indicating that the agreements entered into by virtue of its standards and with its approval comply with the legislative requirement. PIS and COFINS paid in excess under the non-accrued regime by CGTF and CIEN between November 2004 and November 2005, originate tax credits which were used to pay other taxes due. Nevertheless, in 2009 the tax authorities rejected the compensation procedures. In February 2007, the Brazilian tax authorities audited Endesa Fortaleza regarding the payment of PIS/COFINS tax during December 2003 and from February 2004 to November 2004. The audit resulted in a claim alleging differences between the amounts stated in Fortaleza’s annual tax return (where the PIS/COFINS tax amounts were reported under the new non- accrued regime) and the amounts stated in monthly tax returns (where the amounts due were reported under an older accrual system). On appeal, the Taxpayer’s Council confirmed the validity of the compensations of credits resulting from the regime change of PIS/COFINS. The Brazilian Treasury can file a Special Appeal before the Superior Chamber of Fiscal Resources (Cámara Superior de Recursos Fiscales). The amount involved in this proceeding is R$ 75 million (approximately ThCh$ 13,640,100). 14.- The Brazilian Internal Revenue Service (IRS) claims an alleged underreporting of dividends by Endesa Brasil, now called Enel Brasil, than it reported. The Brazilian IRS claims that the total amortization of goodwill (greater value) recorded by Enel Brasil in 2009 in the equity accounts, should have been recorded in the comprehensive income accounts. As a result, the procedure performed was inadequate and a greater profit would have been generated and consequently, a higher amount of dividends distributed. The alleged surplus in dividends was interpreted by the Brazilian IRS as payments to non-residents, which would be subject to a 15% income tax retained at the source. Enel Brasil responded that all the procedures adopted by Enel Brasil were based on the company’s interpretation and in accordance with Brazilian accounting standards (Brazilian GAAP), and confirmed by the external auditor and by a legal opinion from Souza Leão Advogados. Enel Brasil has filed its defence in the administrative first instance and is waiting for an administrative first instance ruling. The amount involved in this proceeding is R$233 million (approximately ThCh$42,375,244). 15.- In 2001, a lawsuit was filed against Emgesa, as well as the non-related companies, Empresa de Energía de Bogotá S.A. E.S.P. (EEB) and Corporación Autónoma Regional de Cundinamarca (CAR), by the residents of Sibaté, in the Colombian Department of Cundinamarca. This lawsuit seeks to hold the defendants jointly liable for the damages and prejudices derived from the pollution to the El Muñá dam reservoir, resulting from the pumping of polluted waters from the Bogotá River by Emgesa. Emgesa has denied these allegations arguing, among others, that it does not have any responsibility since it receives the waters already contaminated. The plaintiffs’ initial demand was for approximately CPs 3,000 billion (approximately ThCh$ 675,000,000). Emgesa filed a motion for the joinder of numerous public and private entities that dump into the waters of the Bogotá River or that in any way are responsible for the environmental stewardship of the river basin. The Third Section of the State Council has received the petition and ordered certain companies joined as defendants. In January 2013, several of the defendants filed responses to the complaint. In June 2013, a motion to annul the proceedings was denied. The resolving preliminary objections and the summons to a conciliation hearing are currently pending. In June 2015 a resolution was enacted instructing the dismissal of EEB by reason of a nullity defect, as well as the exclusion of those entities that had been identified by the Cundinamarca Administrative Court as defendants for having polluted the waters of Bogotá River, which had been confirmed by the State Council. A motion for reversal was filed against this decision, or an appeal. The resolution of such actions is pending. 16.- Corporación Autónoma Regional de Cudinamarca (CAR) in Colombia, through Resolution 506, enacted on March 28, 2005 and Resolution 1189, enacted on July 8, 2005, imposed on Emgesa, EEB and Empresa de Acueducto y Alcantarillado de Bogotá (EAAB) the execution of construction work on the El Muña dam reservoir, 518 2015 Annual Report Enersis whose effectiveness, among others things, depends on maintaining Emgesa’s water concession. Emgesa filed an action for annulment and reestablishment of Law against these resolutions before the Administrative Court of Law of Cundinamarca, Section One. The first instance court denied the nullity of the above-mentioned resolutions. Appeals were filed by Emgesa, EEB and EAAB, which are pending a decision. Also, there is another action for annulment and reestablishment filed by Emgesa against the CAR for annulment of Article 2 of Resolution 1318 of 2017 and Article 2 of Resolution 2000 of 2009, both of which imposed to Emgesa the implementation of a Contingency Plan and to carry out an study on “Air Quality” for the potential suspension of water pumping in the dam reservoir. This action pretends to annul the administrative acts imposed due to impracticability to anticipate the “Air Quality” and the implementation of the “Contingency Plan”. In this action it was presented a favorable accountant expert report, for which it was requested clarification to Emgesa. It is pending clarification of previous expert report and a second expert report to value the Works anticipated by the company. The amount at issue is undetermined. 17.- A class action lawsuit has been filed by residents of the Colombian Municipality of Garzón, alleging that the construction of the El Quimbo hydroelectric project has caused the plaintiffs’ income from handicrafts or entrepreneurial activities to decrease by an average of 30%. The lawsuit claims the decrease was not considered when the project’s social-economic impact report was drafted. Emgesa has denied these allegations on the basis that (i) the social-economic impact report complied with all methodological criteria, including giving all interested parties the opportunity to be registered in the report, (ii) the plaintiffs are not residents and therefore, compensation is allowed only for those whose revenues are, in their majority, coming from of their activity in the direct area of influence of the El Quimbo hydroelectric project and (iii) compensation must not go beyond the “first link” of the production chain and must be based on the status of the income indicators of each affected person. A proceeding was filed in parallel by 38 inhabitants of the Municipality of Garzón, who are claiming compensation for being affected by the El Quimbo hydroelectric project since they were not included in the social-economic impact report. A mandatory settlement hearing was unsuccessful. The court ordered a test, which is currently in the preliminary phase. In the parallel proceeding, an exception previous of pending lawsuit was filed, based on the existence of the principal proceeding. The proposed exception is pending ruling. The amount involved in this proceeding is estimated to be approximately CPs 93 billion (approximately ThCh$20,925,000). 18.- In February 2015, EMGESA was notified of a Popular Action filed by Comepez S.A. and other fish farming companies located near the Betania dam, on the grounds of protection of the right to a healthy environment, public health and food safety in order to prevent, in the opinion of the plaintiffs, the danger of a massive fish mortality among other damages from the filling of the reservoir for the El Quimbo Hydroelectric Project dam, also located at the basin of the Magdalena river. Regarding the status of the proceeding, the Huila administrative court issued in February 2015 a preliminary injunction that prevents the filling of the El Quimbo dam reservoir until the river has reached the optimal flow, among other requirements. Emgesa filed a motion for reversal against this decision requesting a probation order and the release of such measure, which motion was dismissed by the court. The appeal filed by Emgesa was granted only in the remand effect. The preliminary injunction was amended, allowing Emgesa to start filling the dam reservoir. Nevertheless the Regional Environmental Authority (CAM) in Resolution 1503 issued on July 3, 2015 directed Emgesa to temporarily stop filling the El Quimbo dam reservoir. The legal actions to be adopted are under analysis by Emgesa, notwithstanding the filling procedure continues normally. The appeal is pending. The Colombian government, through Decree 1979 has requested the lifting of the generation suspension and reported that Emgesa must abide by such Decree. On December 15, 2015, the Constitutional Court decided that the referred Decree 1979 was unenforceable, consequently, EMGESA suspended at midnight of that day the generation of energy at El Quimbo. EMGESA presented the corresponding arguments. 519 Consolidated Financial StatementsOn December 24, 2015, the Ministry of Energy and Mining and the National Authority of Aquaculture and Fishing (“AUNAP”) filed a writ of protection of constitutional rights to Civil Courts of Circuito de Neiva as a transitional mechanism to avoid damage, and meanwhile the Huila administrative court decides on releasing the precautionary measure, they requested the generation of energy of El Quimbo. Moreover, they requested to authorize such generation as an interim measure until a ruling on the writ of protection is made. On January 8, 2016, Emgesa was notified of the decision of the Civil Court of Circuito de Neiva which authorized Emgesa to immediately restore the generation of energy as a transitional measure until the Huila administrative court decides on releasing or not the precautionary measure. The amount of this proceeding is undetermined. 19.- In Colombia, upon creating an electrical distribution subsidiary, Codensa, in 1997, EEB contributed all public lighting infrastructures and other sale and distribution assets to Codensa in exchange for 51.5% of Codensa’s shares. However, there was no absolute clarity regarding the inventory of lights in the city and this generated subsequently differences regarding invoicing and settlement of the energy value that Codensa supplied to the municipality. In 2005, a geo-reference inventory of the lights was performed, which resulted in 8,661 fewer lights than those that Codensa considered in its billing and settlement to the Federal District of Bogotá (the District). In order to solve the conflict, the Parties carried out round-table discussion to come to an agreement. However, in 2009 a private citizen filed a derivative action in which he requests that the court of law: (i) declare the rights of the administrative morality and public property violated; (ii) order Codensa to carry out the settlement that includes delinquent interest due to the higher values paid between 1998 and 2004; and (iii) recognize the incentive due to administrative morality for the claimant (15% of the amount the District recovered). The first instance judgment, confirmed by the second instance judgment, ordered the Administrative Special Public Utilities Unit (the UAESP) and Codensa to, within a time period of two months starting from the date of issuance of the judgment, carry out all necessary negotiations to establish in a definitive manner the balances either in favor or against Codensa, duly adjusted, plus additional interest. If no agreement is reached, the UAESP itself may perform within the unilateral judgment within two months and deliver it to Codensa for its consideration. Codensa may also exercise remedies through the relevant government channels and, in the event of non-payment, must proceed to execute the judgment. On September 6, 2013, the Comptroller sent a communication to Codensa announcing future control actions against the company and the UAESP for an alleged detriment to the District of CPs 95,142,786,544 approximately ThCh$ 21,407,126, due to payments owed to the District for public lighting between 1998 and 2004. On September 20, 2013, CODENSA responded, disagreeing with the amount and proposing a technical group to resolve the issue. This resulted in several meetings being held. Based on Codensa’s documents and the declarations presented, the Comptroller issued a new report that supports the figure obtained by common accord by UAESP and Codensa of CPs 14,432,754,679 (approximately ThCh$ 3,247,369). The Comptroller recommended in its report that UAESP send the agreement for judicial review in order to resolve the lawsuit with Codensa, which occurred on December 13, 2013. Subsequently, the Comptroller, this time from Bogota, issued a report questioning the agreement with the UAESP; such report was presented at Court. On September 17, 2014, it was requested to the Court to notify about the report, it is pending resolution from the Tenth Administrative Court of Bogota, either for notifying the report or final decision on the agreement subscribed between Codensa and the UAESP. 20.- A Group Action was filed in Colombia against Codensa by which plaintiffs intend that this company reimburses them the allegedly excess charge for not applying the tariff benefit that according to them would have corresponded as users of the Voltage One Level and owners of the infrastructure, as established by Resolution 082 of 2002, amended by resolution 097 of 2008. Regarding the proceeding status, Codensa filed a plea against the lawsuit rejecting it entirely. A conciliation hearing was effected between the parties, without success. The writ of proof is pending. The estimated amount is approximately $337,626,840,000 Colombian pesos (approximately ThCh$75,966,039). 520 2015 Annual Report Enersis 21.- To counter the impact in prices as a result of the climate phenomena “El Niño”, the Energy and Gas Regulatory Commission (“CREG”), through Resolution CREG 168 of 2008 establishes the Optional Tariff, which allows to defer the increase in the electrical energy tariff for up to two years, mitigating the impact of the increase to end users. Codensa voluntarily ended the Optional Tariff it was applying, as such, it must determine the difference between the actual values of the tariff and the invoiced valued from the Optional Tariff, based on the balances and the historical values transferred to the tariff for end uses, in compliance with Resolution CREG 168 of 2008. The resulting difference of comparing tariffs must be returned to the end uses as the Optional Tariff values, as accumulated balances, are always higher than the values that would have been invoiced had no opted for that alternative. In terms of process status, it was notified the demand on October 1, 2015 which was answered on November 23, 2015. The conciliation hearing date has not yet been fixed. National regulations does not establish the mechanism to return the money from the optional tariff to end users; however, the company has previously decided to return it. There is a difference between the amounts that the company expects to return and the amount that the regulator expects. The demand was answered on November 23, 2015. The conciliation hearing date has not yet been fixed. The estimated amount is approximately $163,000,000,000 Colombian pesos (ThCh$36,675,000). 22.- The fiscal authority in Peru, SUNAT, questioned Edegel in 2001 regarding the manner in which it was accounting for the valuation of its depreciating assets. Edegel had conducted a voluntary reevaluation for the 1996 fiscal year, and as a result of such reevaluation it recorded a reduction of goodwill with respect to assets. This depreciation was recorded as an expense. The amount rejected by SUNAT is related to financial interest paid during the construction phase of the power plants. SUNAT claims (i) that Edegel has not demonstrated that it was necessary to obtain financing to build the power plants and (ii) that such financing was actually incurred. Edegel has responded that SUNAT cannot request such evidence because the reevaluation assigns the assets a market value when the reevaluation was performed, instead of the historical value of the assets. In this case, the methodology considered that the power plants of such scale were built with financings. In addition, Edegel claimed that if SUNAT disagreed with the valuation, it should have conducted its own appraisal, which it failed to do. On February 2, 2012, the Tax Court (TF) issued a ruling for the 1999 fiscal year in favor of two of Edegel’s power plants, and against four power plants, based on the fact that a verified financing was only evidenced for the first two power plants. Consequently, the TF ordered SUNAT to recalculate the taxes payable by Edegel, which amounted to ThCh$8,474,708 (€11 million) that were paid by Edegel in June 2012. This amount will be recovered if Edegel obtains favorable rulings in the following claims it has subsequently filed: i) an administrative contentious claim before the Judicial System against the TF’s ruling, filed in May 2012 (which would result in a complete recovery of the taxes). ii) a partial appeal against the recalculation that SUNAT performed according to TF’s ruling, on the basis that the recalculation was incorrect, filed in July 2012 (which would result in a partial recovery of the taxes). In August 2013, Edegel received notice of an unfavorable ruling with respect to claim i). Edegel filed an annulment appeal against the ruling, since the resolution violates its motivation right and it is untimely. In May 2015, Edegel received notice of the resolution of the Court of Appeal which: (i) annulled the resolution from the Justice Department (“JD”) which rejected the petitions of the demand of the company; (ii) the claims rejected were declared admitted; and (iii) it was ordered to the JD to return to the stage of determination of the controversy points. In June 2015, Edegel received notice from the JD that it declared admitted the claims rejected and it was submitted to the attorney general’s office for issuance of a new pronouncement (in Peru when the Government is engaged as a party in a judicial process a general attorney designated by the Public Ministry must be involved, in order for him to be informed and to opine regarding the controversy. Such opinion is not binding for the judge or the Court that must resolve the litigation). 521 Consolidated Financial StatementsFor the 2000 to 2001 fiscal years, Edegel paid the equivalent of ThCh$3,852,140 and made a provision of ThCh$770,428. In November 2015, Edegel was notified of Resolution No. 15281-8-2014, stating that the TF ruled with respect to the indicated appeal by which it was declared annulled the Resolution where the SUNAT objected the loss deductions related to the financial derivative instruments. Then, confirmed the objections related to the non- deductibility of depreciation of the non-accredited technical assistance services rendered to Generandes and the financial interests accrued on the loans for the acquisition of treasury shares; and, finally, it revoked both matters. It is important to note that, although the TF’s resolution revoked the objections related to the excess in depreciation of the revalued assets; however, stated that the SUNAT shall apply what is resolved in the company’s appeal of Income Taxes filed for the fiscal year 1999 (EXp. No. 10099 to 2012), which is still pending resolution. In December 2015, it still pending that the TF submit the case to the SUNAT in order for it to recalculate the debt based on the established criteria. For the 1999 fiscal year it is expected that the Judicial System will enact a new resolution on the Edegel lawsuit and that the TF will decide on the partial appeal filed by Edegel. For the 2000 and 2001 fiscal years, filed new evidence in order to reduce amount of that could be paid from ThCh$4,622,568 to ThCh$1,001,556; however, the TF could determine that the evidence is inadmissible as untimely. In December 2014, the TF enacted a resolution on the appeal filed by Edegel, but it has not yet been notified. Notification is expected. The amount involved in these proceedings is S/.63,944,287 (approximately ThCh$ 13,305,207), which is divided between the assets amount of S/.59,819,819 (approximately ThCh$ 12,447,008) and the liabilities amount of S/. 4,124,468 (approximately ThCh$ 858,198). 23.- Enersis Américas, Additional Tax for non-Chilean residents or domiciles shareholders. In September 2012, Enersis Américas S.A. received notice from the Chilean Internal Revenue Service (“SII” in its Spanish acronym) on a settlement and resolution related to withholding taxes on dividends paid in fiscal years 2008 and 2009 (tax years 2009 and 2010) to non-Chilean residents or domiciles shareholders of Enersis Américas. Despite that there is no differences in owed taxes, therefore no fines have been applied, the SII is requesting Enersis Américas to correct the calculation methodology used for its tax return. In addition, the SII notified on settlements and resolutions for the same concept for fiscal years 2010 and 2011 (tax years 2011 and 2012). The position of the tax authority is that the methodology used by the company to determine the difference between the final tax credit and the provisional tax credit was incorrect, because Enersis Américas shall pay the total amount of the tax credit used in the calculation of the provisional withholding and only the shareholders shall request refund from the amount paid in excess by the Chilean company. The position of Enersis Américas is that the interpretation of the tax authority is based on the wording of an article in the tax law that it seems to require the “payment of credits in excess”, but it did not consider the existence of a Resolution issued by itself indicating the description of this process to which Enersis Américas have complied with. Moreover, if used the methodology of the tax authority, the amount to be paid on behalf of the shareholders would be the same as the amount that the shareholders would request to the SII for refund. The difference is that the amounts paid to the SII are price-level restated by CPI and interests (1.5%), while the amounts that the SII will reimburse are only price-level restated by CPI. On March 13, 2014, the Company filed a tax claim with the Tax and Customs Court (“TTA” in its Spanish acronym) in first instance for fiscal years 2008 and 2009. On August 18, 2014, a tax claim was filed for fiscal year 2010 (tax year 2011), and lastly, on August 29, 2014, a tax claim was filed for fiscal year 2011 (tax year 2012). The three tax claims are pending of response from the SII, and on October 10, 2014, Enersis Américas requested their aggregation, which was granted by the Court on October 16, 2014. On 522 2015 Annual Report Enersis September 21, 2015, the TTA open the evidential period. On October 15, 2015, Enersis Américas presented its evidence. On December 31, 2015, the TTA unfavorable ruled against Enersis Américas. On January 4, 2016, the Company received notice of the resolution. Enersis Américas filed an appeal to the Appeal Court of Santiago. The amount involved in this proceeding is ThCh$45,566,682. b) Discontinued Operations 1.- 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. 2.- 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. 3.- 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. 523 Consolidated Financial Statements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 was rejected, the sanction imposed was confirmed. As of December 31, 2015 the amount has been paid. 4.- 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$ 51,326,814) 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. The arbitrator gave the parties for their study a base for an agreement. The management of Enersis Américas S.A. considers that the provisions recorded in the Consolidated 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. 524 2015 Annual Report Enersis 36.4 Financial restrictions A number of the company’s loan agreements, and those of some of its subsidiaries, 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 Enersis Américas and of Endesa Chile contain cross default clauses. The credit line agreements governed by Chilean law, which Endesa Chile signed in February 2013 and Enersis Américas in April 2013, stipulate that cross default arises only in the event of non-compliance by the borrower itself, with no reference made to its subsidiaries, i.e. Enersis Américas or Endesa Chile, respectively. 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 and April 2016, respectively. 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 used. Regarding the bond issues of Enersis Américas and 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 Chilean 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. In addition, events of bankruptcy or insolvency of foreign subsidiaries have no contractual effects on the Yankee bonds of Enersis Américas or Endesa Chile. The Enersis Américas Yankee bonds mature in 2016 and 2026, and those of Endesa Chile do so 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 Enersis Américas and 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 3% of total consolidated assets in the case of Enersis Américas, and US$ 50 million or its equivalent in other currencies in the case of Endesa Chile. 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 the company is obliged to meet at certain periods of time (quarterly, annually, etc.). Most of the financial covenants of the 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. 525 Consolidated Financial StatementsThe Series B2 domestic bonds of Enersis Américas includes the following financial covenants, whose definitions and calculation formulas are set out in the respective contract: - Consolidated Equity: Minimum Equity must be maintained of Ch$ 628,570 million, a limit adjusted at the end of each year as established in the indenture. Equity is the sum of Equity attributable to the shareholders of Enersis Américas and minority interests. As of December 31, 2015, Enersis Américas equity was Ch$ 8,189,808 million. - Debt Ratio: A debt ratio, defined as Total liabilities to Equity, should be no more than 2.24. Total liabilities are the sum of Total current liabilities and Total non-current liabilities, while Equity is the sum of Equity attributable to the shareholders of Enersis Américas and non-controlling interests. As of December 31, 2015, the Debt Ratio was 0.89. - Unsecured Assets: The ratio of Unsecured assets to Unsecured total liabilities must be at least 1. Total Unsecured or free assets is the difference between Total assets and Total secured assets. Total unsecured or free assets consists of Total assets less the sum of Cash, Bank balances, Accounts receivable from related entities, current, Payments made in advance, current, Non-current accounts receivable from related entities, and Identifiable intangible assets, gross, while Total secured assets relates to assets pledged in guarantee. On the other hand, Total unsecured liabilities consist of the sum of Total current liabilities and Total non-current liabilities, less liabilities secured by collateral. As of December 31, 2015, this ratio was 1.88. It is important to note that the undisbursed credit line in Chile includes other covenants such as leverage and debt repayment capacity ratios (Debt/EBITDA), while the Yankee bonds are not subject to financial covenants. As of December 31, 2015, the most restrictive financial covenant for Enersis Américas was the Debt/EBITDA ratio with respect to local credit lines early closed on January 18, 2016. 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 Enersis Américas and Non-controlling interests. As of December 31, 2015, the ratio was 0.19. - Consolidated Equity: A minimum Equity of Ch$ 761,661 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 Enersis Américas. As of December 31, 2015, the equity of Endesa Chile was Ch$ 2,648,190 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 year ended December 31, 2015, this ratio was 8.21. 526 2015 Annual Report Enersis - 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 Américas has no participation, and long-term transactions of associates of Endesa Chile in which Enersis Américas 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 Américas has no participation; and long-term transactions of associates of Endesa Chile in which Enersis Américas has no participation. As of December 31, 2015, using the exchange rate prevailing on that date, the Net asset position with related companies was a negative US$ 341.86 million, indicating that Enersis Américas 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 Américas and Non-controlling interests. As of December 31, 2015, the debt ratio was 0.19. - 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. In the case of Endesa Chile, the most restrictive financial covenant as of December 31, 2015 was the Debt Ratio requirement for the credit line under Chilean law, which was early closed on January 18, 2016. In Peru, the debt of Edelnor only has one covenant, a Debt Ratio with respect to the local bonds whose final maturity is in January 2033. On the other hand, the debt of Edegel includes the following covenants: Debt Ratio and Debt Coverage (Debt/EBITDA). As of December 31, 2015, the most restrictive financial covenant for Edegel was the Debt/EBITDA ratio corresponding to the financial leasing agreement with Banco Scotiabank that expires in March 2017. Piura’s debt includes the following covenants: Debt Coverage and Level of Indebtedness. As of December 31, 2015, the most restrictive covenant on Piura debt was the indebtedness covenant from the Reserva Fría plant construction leasing agreement with Banco de Crédito del Peru which expires in June 2020. In Brazil, the debt of Coelce includes compliance with the following covenants: Debt Coverage (Debt/EBITDA), Level of Indebtedness, and the Interest Coverage ratio (EBITDA/financial expenses). As of December 31, 2015, Coelce’s most restrictive financial covenant was the Debt/EBITDA ratio for the 3rd local bond issue with a final maturity in October 2018. The debt corresponding to Ampla includes the following covenants: Debt Coverage (the Debt/EBITDA ratio), the Indebtedness ratio and the Interest Coverage Ratio (EBITDA/financial expenses). As of December 31, 2015, the most restrictive financial covenant for Ampla was the Debt/EBITDA ratio on the loan with the Banco Nacional do Desenvolvimiento Economico e Social (“BNDES”), whose final maturity is June 2021. Cien’s debt includes covenants on Debt Coverage (Debt/EBITDA) and the Debt Ratio on a loan with BNDES maturing in June 2020. As of December 31, 2015, its most restrictive covenant was the Debt ratio. 527 Consolidated Financial StatementsIn Argentina, Costanera has just one covenant, the maximum debt, corresponding to a loan from Credit Suisse First Boston International which matures in February 2016. The debt of El Chocón includes covenants related to Maximum Debt, Net consolidated equity, Interest Coverage, Debt Coverage (debt/EBITDA) and the leverage ratio. As of December 31, 2015, the most restrictive covenant was the leverage ratio for the syndicated loan maturing in September 2016. In Colombia, the debt of Emgesa has only one convenant, Net Debt/EBITDA, for the loan with the Bank of Tokyo with a final maturity in June 2017. However, the obligation to comply with this covenant is subject to a downgrade in the credit rating of Emgesa that could result in losing is Investment Grade quality, as stated in the debt agreement. As of December 31, 2015, the covenant was not triggered. On the other hand, the debt of Codensa is not subject to compliance with financial covenants, a situation that also applies to the debt of the rest of the companies not mentioned in this note. 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, 2015 and 2014, neither Enersis Américas nor any of its subsidiaries were in default under their financial obligations summarized here or other financial obligations whose defaults might trigger the acceleration of their financial commitments, with the exception of our Argentine generation subsidiaries Hidroeléctrica El Chocón at the close of December 2014. This situation does not represent a risk of cross default or a breach for Enersis Américas. As of December 31, 2015, all assets and liabilities related to the distribution and generation businesses in Chile has been classified as non-current assets held for distribution to owners (See Note 5.1). 36.5 Other Information Central Costanera S.A. - On July 17, 2015, and in force as of the economic transactions corresponding to February 2015, Resolution S.E. Nº 482/2015 was enacted which, among other aspects updated the remuneration of the MEM’s generating agents of thermal conventional type or hydraulic national (with the exception of the hydraulic bi-national), replacing to this end Schedules I, II, III, IV and V of Resolution S.E. Nº 529/14, and including a new remuneration concept that is the Investment Writ FONINVEMEM 2015-2018, which application is from February 2015 until December 2018, for those generating companies participating in investment projects approved or to be approved by the Secretary of Energy. In this sense, each generation unit built within the framework of the FONINVEMEM 2015-2018 investments is granted a Direct FONINVEMEM 2015-2018 Remuneration equal to 50% the Direct Additional Remuneration for a period of up to 10 years from its commercial implementation. On June 5, 2015, our generating subsidiaries in Argentina entered into the “Agreement of Management and Operation of Projects to Increase the Availability of Thermal Generation and Adjustment of the Generation Remuneration 2015-2018”, hereinafter FONINVEMEM 2015-2018, and adhered to all the terms established in such agreement on July 2, 2015. Adhering includes the irrevocable commitment to participate in the formation of FONINVEMEM 2015-2018, undertaking according to point 3.2.v of the Agreement to contribute with the Sales Statements with a Maturity to be defined (LVFVD) and/or Collectibles accrued or to be accrued during 528 2015 Annual Report Enersis the entire period between February 2015 and December 2018 not previously committed to similar programs, together with all unused Collectibles. Both the Secretary of Energy and the generating agents that adhered to the Agreement maintain the right to consider this Agreement lawfully terminated if during the 90 days indicated in point 9 of the Agreement the corresponding supplementary agreements are not entered into. By adhering to such Agreement generating companies will participate, together with other Generating Agents, in the construction of a Combined Cycle of about 800 MW +/- 15%, which shall generate both with natural gas and with gasoil and biodiesel. The new combined cycle will be subject to a bidding in order to be implemented no longer than 34 months after the work is granted. Notwithstanding the above, our subsidiary in Argentina Central Costanera still shows a deficit in its working capital, causing difficulties to its financial balance in the short term which compromise its future capability to continue operating as a company and to recover assets. Central Costanera expects to revert the current situation provided that there is a favorable resolution on the requests made to the National Government of Argentina. - On March 18, 2015, the Undersecretary of Electric Energy issued its Note SS.EE. 476/2015, which establishes the procedure to coordinate the remuneration according to Resolution SE Nº 95/2013 and the Availability Agreements for Combined Cycles and Turbosteam entered into between Central Costanera and CAMMESA, as from February 2014. As established in the above, Central Costanera shall temporarily relinquish to receive the Additional Remuneration Trust established Res. SE. Nº 95/2013, its amendments and supplements which were already undertaken, as well as the Remuneration for Non Recurrent Maintenance as established in Res. SE Nº 529/2014, its amendments and supplements. The procedure implies the reversal of the deductions made and applied to the Company as established in notes S.E. Nº 7594/2013 and Nº 8376/2013, as from the validity of this standard. Since the economic transaction in the month of January, 2015, the concepts relinquished by the Company shall be applied to the compensation funds transferred by CAMMESA to the Company as of that date to perform the tasks provided for in the agreements. In case the amount accrued for this concept it not enough to offset the total funds transferred by CAMMESA to the Company, they shall be accrued in a special account “Available Agreements Account”. In order to materialize the conditions established above, the Company and CAMMESA should enter into the corresponding addendum to the agreements. On July 3, 2015, the Company entered into the addendum with CAMMESA to the Availability Agreements for Combined Cycles and Turbosteam. These Agreements regulations plus the amendments introduced by the addendum regulate the agreement between the parties and they shall be understood as entirely valid until the validity term established in such agreements expires. As a consequence of the above, during the fiscal year 2015 a decrease of Ch$ 1,021 million was recognized in the revenues for sales and other operational income / expense of Ch$4,193 million. - In December 2014, the Vuelta de Obligado (“VOSA”) thermal plant started to operate it open cycle with two gas turbines of 270 MW each, it is expected the closing as combined cycle of high efficiency in October 2016. In accordance with a technical report issued by VOSA’s authorities, the gas turbines have passed all operational tests and have functioned properly. There is still pending to nationalize very few components to complete stage two, and there is certainty that the works will be completed and implemented in 2016. 529 Consolidated Financial StatementsBased on above, in December 2015, were accounted for the effects of the dollarization of the receivables, resulting in the recognition of the following income: - Exchange difference for dollarization of the receivables at an exchange rate lower than the closing exchange rate of 2015 for $ 1,323,430,283 Argentine pesos (ThCh$ 93,699,288) in Chocón; $ 129,092,580 Argentine pesos (ThCh$ 9,139,796) in Costanera; and $ 546,902,547 Argentine pesos (ThCh$ 38,720,876) in Dock Sud. - Interest accrued between the maturity date of each sale settlement contributed to the VOSA project and the sign-off date of the Agreement, at the interest rate that CAMMESSA obtain for its financial deposits, capitalized and dollarized in accordance with above, for a total of $ 49,797,906 Argentine pesos (ThCh$ 3,525,708) in Chocón. - Interest accrued on dollarized receivables, once included the interests mentioned in previous paragraph, at an interest rate LIBOR 30 days + 5%, for a total of $ 493,816,698 Argentine pesos (ThCh$ 34,962,380) in Chocón; $ 43,989,703 (ThCh$ 3,114,485) in Costanera; and $ 218,604,914 (ThCh$ 15,477,298) in Dock Sud. - On July 25, 1990, the Italian Government authorized MedioCredito Centrale to grant a financial loan to the Government of the Republic of Argentina of up to US$ 93,995,562 aimed to finance the acquisition of assets and the delivery of services of Italian origin, used in the restoration of four groups at the thermal station owned by Servicios Eléctricos del Gran Buenos Aires (“SEGBA”) [Electric Services for Great Buenos Aires]. This credit financed the acquisition of assets and services included in the Work Order Nº 4322 (the “Order”) issued by SEGBA in favor of a consortium headed by Ansaldo S.p.A. from Italy. According to the terms of the “Contract related to the Work Order Nº 4322”: (i) SEGBA granted to Central Costanera S.A. a power to manage the execution of the services contained in the Order, and it performed the works and services that according to the Order corresponded to SEGBA; and (ii) Central Costanera S.A. undertook to pay to the Secretary of Energy of the Nation (the “Secretary of Energy”) the capital instalments plus interests originated by the loan granted by MedioCredito Centrale, at an annual rate of 1.75% (the “Contract”). As a collateral for the compliance with the economic obligations undertaken by Central Costanera S.A., the buyers set up a pledge over the total shares owned by them. In the event of non-compliance which provokes the execution of the collateral, the Secretary of Energy will be entitled to immediately proceed with the sale of the pledged shares through a public bid, and it could exercise the political rights corresponding to the pledged shares. By reason of application of Law Nº 25.561, Decree Nº 214/02 and its regulatory stipulations, the payment obligation by Central Costanera S.A. resulting from the Contract and subject to the Argentinian legislation was mandatorily converted into pesos, at a ratio of one peso equivalent to one dollar of the United States, plus the application of the stabilization reference coefficient (“CER”), maintaining the original interest rate of the obligation. On January 10, 2003, the National Executive Power enacted Decree Nº 53/03 which amended Decree Nº 410/02 by incorporating a paragraph j) in its first article. By means of this standard, the obligation to deliver funds in foreign currency to the province states, municipalities, companies of the public and private sector and the National Government originated by subsidiary or other nature loans and guarantors originally financed by multilateral credit organizations, or originated by liabilities assumed by the National Treasury and refinanced with external creditors is exempt from the mandatory conversion into pesos. 530 2015 Annual Report Enersis Central Costanera S.A. considers that the loan resulting from the Contract does not match with any of the assumptions provided for in Decree Nº 53/03, and even if it did, there are solid grounds to consider Decree Nº 53/03 unconstitutional since it evidently violates the principle of equality and the right of property as established in the National Constitution. On May 30, 2011, the Company repaid the last instalment of the loan’s capital and notified this fact to the Secretary of Energy and to the Secretary of Finance and, even if as of the date of these financial statements the Secretary of Energy has not made any claim for the payments effected by Central Costanera S.A., on October 22, 2015 we received a letter from the Secretary of Finance – Directorate for the Administration of the Public Debt, which indicates that the Ministry of Economy and Public Finance included the balance of the debt for the financial credit with MedioCredito Centrale in the agreement entered into with the Club of Paris creditors on April 30, 2014. According to the letter, the Secretary also claims from Costanera the reimbursement of US$ 5,472,703.76 without providing grounds for such request. As a result, Costanera rejected the indicated requirement indicating, among other, that (i) it does not have a debt related to the Contract since on May 30, 2011, the Company repaid the last instalment of it and notified such circumstance to the Secretary of Energy and to the Secretary of Finance, (ii) the creditor has not expressed any caution to the Contract payments derived from the mandatory conversion into pesos imposed by the Argentinian legislation, and (iii) notwithstanding the fact that the Company does not acknowledge the terms of the agreement entered into with the Club of Paris creditors, the decisions of the Argentinian Government regarding the debt with such organization are unrelated to the Company. The Secretary of Finance, due to the rejection from Costanera, submitted the DADP Note No. 2127/2015 attaching Resolution DGAJ No. 257501 from the Ministry of Economy and Public Finance, insisting in the existence of the debt and requesting the Company to pay the claimed amounts. The Company filed a hierarchy appeal so as to the Minister of Economy and Public Finance revoke the petition of the note due to lack of legitimacy. Edesur S.A. - On March 11, 2015, the Secretary of Energy issued Resolution No. 32/2015, which establishes the following among the most important points: (i) it approves a transitory increase for Edesur with validity as from February 1st, 2015 aimed exclusively to pay the energy acquired from the electric market, salaries and assets and services supply; such increase, on account of the Integral Tariff Review (RTI) which date has not been defined, arises from the difference between a theoretical tariff framework and the tariff framework in force for each category of user, according to the calculations of the Ente Nacional Regulador de la Electricidad (E.N.R.E.) [National Regulatory Entity of Electricity], which shall not be converted into tariff but it will be covered by means of transfers from CAMMESA with funds of the National Government; (ii) as from February 1st , 2015 the funds of the Program for Rational Use of Electric Energy (PUREE) shall be considered as a part of Edesur revenues, also on account of the RTI; (iii) it confirms the procedure of the Cost Monitoring Mechanism (MMC) until January 31, 2015; and (iv) it instructs CAMMESA to issue LVFVD in the amounts determined by the E.N.R.E. by virtue of the higher salary costs of the Company originated by the application of Resolution N° 836/2014 of the Secretary of Labor. In addition, it allows for payment of remaining balances in favor of the Electric Wholesales Market (MEM) by means of a payment plan to be defined. Also, it instructs E.N.R.E. to initiate actions prior to the RTI processing. As a consequence of the above, during the year ended December 31, 2015 were recognized revenues for Ch$ 352,108 million, which are presented in the statement of comprehensive income as follows: for point (i), Ch$ 264,987 million in the line item “Other income Res. SE N° 32/2015” and Ch$ 644 531 Consolidated Financial Statementsmillion in the line “Financial income”; for point (ii), Ch$ 33,972 million within “Revenues from Services” (sales of energy); and for points (iii) and (iv), Ch$ 52,505 million in “Other net operating income”. Although Resolution SE N° 32/2015 represents a first step towards the improvement of the Company’s economic situation, investments will continue being financed through mutual agreements with CAMMESA, as it remains pending to find mechanisms allowing for repayment of the remaining balances in favor of the MEM, as well as the updating of revenues that contemplate future increases in the operational costs. On the other hand and regarding the above, on June 29, 2015 the SE released its Note N° 1,208 by which it instructs CAMMESA on the method to calculate the debts maintained by Edesur with the MEM for the economic transaction of energy accrued as of January 31, 2015 and their offsetting with the credits arising from the application of the MMC. As a result, during the year ended December 31, 2015 net financial income was recognized amounting to Ch$ 27,216 million. As of the date of these financial statements the indicated instructions is being implemented. In accordance with Article 5 of Resolution No. 32/2015, the transitory increase approved was subsequently updated through Notes SE No. 2097 and 2157, on November 12 and 16 of 2015, respectively, as a result of the periodic monitoring performed by the ENRE over the operational cost trends of the Company. Likewise, Edesur requested to the ENRE, the modification of the tariff table in the terms established in Articles No. 46 and 47 of Law 24,065 in order to reflect the amounts imposed of by Resolution of the Secretary of Labor (ST) No. 1906/2012 and the minute of meeting subscribed on February 26, 2013 with the national authorities and the Ministry of Labor, which defined the increases in the remuneration requested by the “Luz y Fuerza” Union for its own employees and those of the subcontractors. The ENRE rejected both requests; however, stated to intervene with the SE in the terms established in Resolution MPFIPyS No. 2000/2006, which is still pending of notice. Lastly, on December 16, 2015, the new national authorities declared through Decree 134/2015, the emergency at the National Electrical Sector effective until December 31, 2017. The Decree instructed to the Ministry of Energy and Mining to elaborate and implement an action plan with the necessary activities for the generation, transmission and distribution segments within national jurisdiction, aimed to adapt the quality and safety of the energy supply and to ensure the rendering of electrical public services under appropriate technical and economic conditions. The delay in compliance with certain milestones established in the Agreement Act had an impact in the liquidity ratio. The Company believes that the adverse effects as a result of the lack in timely application of the rights for adjustment in its revenues will be reversed with the tariffs resetting. - On July 12, 2012, the E.N.R.E. through Resolution N° 183/2012 appointed Luis Miguel Barletta as observer in Edesur, in charge of overseeing and controlling the current administrative actions and delivery related to the normal service rendering by the Company. The appointed observer would be in office for a 45-day renewable term. On July 20, 2012 the Company filed a writ of reconsideration with appeal against Resolution E.N.R.E. Nº 183/2012. The same has rejected the grounds of the Resolution, stating and showing the financial and economic constraints to which Edesur has been subject for years by the E.N.R.E. and other authorities due to their denial to reflect in tariffs the greater costs or the values that must derive from an integral tariff review, or to offer other revenues for the service. The observer function was extended by means of Resolutions E.N.R.E. Nº 246/2012, N° 337/2012 and N° 34/2013, the Decision E.N.R.E. N° 25/2013, Resolution E.N.R.E. N° 243/13 and the Decision E.N.R.E. N° 2/2014 dated January 9, 2014, that extends such appointment for another 90 532 2015 Annual Report Enersis administrative working days, extendable. On January 30, 2014 the E.N.R.E. issues Resolution N° 31/2014 which given the new Board of Directors at the entity that appointed the engineer Ricardo Alejandro Martínez Leone as Chairman, also appoints the latter as observer at Edesur, in replacement of engineer Luis Miguel Barletta, for a 90 administrative working day term, extendable. The Decision E.N.R.E. N° 36/2014, dated June 17, 2014, extends for another 90 administrative working day term, extendable the appointment of engineer Martínez Leone as observer at Edesur. Decision E.N.R.E. N° 244/2014, dated September 3, 2014 appoints the accountant Rubén Emilio Segura to replace the engineer Martínez Leone as observer at Edesur, for a 90 administrative working day term, extendable. On April 22, 2015 the E.N.R.E. released Resolution N° 128/2015 extending such appointment for 90 administrative working day term. The writ of reconsideration and appeal filed against the mentioned resolution is maintained and extends to the resolutions by which the effects of the observer were extended. On January 25, 2016, the Ministry of Energy and Mining (“MEyM” in its Spanish acronym) issued Resolution No. 6/2016 which approved the Summer Quarterly Re-scheduling (“Reprogramación Trimestral de Verano”) applicable to the Wholesale Electricity Market (“MEM” in its Spanish acronym) and established the seasonal reference prices for energy and capacity for the February-April 2016 period. Additionally, in order to move towards proper management of demand through incentives for saving and rational use of electricity of residential end users (“Plan Estímulo”), implemented through the MEM, an incentive system that will result in a mechanism of decreasing energy prices as counterpart of the effort of each residential user to reduce unnecessary consumption, which will be determined by comparing the monthly energy consumption with the one recorded in the same month of 2015. Moreover, given the social significance of the electricity service, the previously mentioned Resolution defines an energy volume at a price named Social Tariff (“Tarifa Social”), to be transferred at a minimum price to those included in the population of end users who, based on the criteria of classification communicated by the Ministry of Social Development of the Nation (“Ministerio de Desarrollo Social de la Nación”), lacks sufficient payment capacity to afford the general established prices. Access to reduced wholesale prices for Social Tariff and incentive for saving are subject to the compliance with, in the case of distribution companies, the payment obligations in the MEM due from the effective date of this Resolution. Likewise, those distribution companies with outstanding debts with CAMMESA as of issuance date of the Resolution, as in the case of Edesur, shall agree to, in no less than 30 business days, a payment plan for the past due debt and, also, to ensure payment of its purchases in the MEM through transferring its accounts receivables or other equivalent alternative mechanism at CAMMESA’s satisfaction, so as to ensure both the collection on current billing and the payment of the installments in the agreement to sign related to the past due debt. As of the date of issuance of these financial statements, the Company is assessing the effects of Resolution MEyM No. 6/2016. Subsequently, on January 27, 2016, it was issued Resolution MEyM No. 7/2016 instruction E.N.R.E. to: i. Adjust the VAD in the tariff tables of the Company, on account of the RTI within the framework of the Transitional Tariff Regime established in the Agreement Act (“Acta Acuerdo”). ii. Apply a Social Tariff to the population of end users resulting from the application of certain eligibility criteria, namely: be a retiree or pensioner for an amount equivalent to twice minimum salary; employed persons in a 533 Consolidated Financial Statementsdependency relationship earning a gross remuneration lower or equal to two minimum salaries; be beneficiary in social programs; be enrolled in the Social Monotributo Regime; be incorporated in the Social Security Special Regime for domestic service workers; receiving unemployment insurance; or have a disability certificate, being excluded from the benefit those owners of more than real estate, motor vehicles whose models are up to 15 years old, or luxury aircrafts and boats. iii. Include in the tariff tables the saving of electrical energy plan as stated in Resolution MEyM No. 6/2016. iv. Carry out all necessary activities to proceed to the RTI, which must be effective before December 31, 2016. In order for users to improve their household finances, the ENRE shall have the necessary means in terms of implementing the monthly payments for the distribution public service rendered by the Company. Furthermore, Resolution MEyM N° 7/2016 annulled the Energy Efficiency Program (“PUREE” in its Spanish acronym) from the effective date of the new tariff values and will cease the application of the planned projects financing mechanism by mutual loans with CAMMESSA. Finally, the Resolution established that the dividend distribution must agree the Agreement Act, which subordinate to verification from the ENRE of compliance with the investment plan. 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 subsidiary, Endesa Chile, participates by accepting some of the claims filed against this project. It is of public knowledge that this decision was resorted 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 Américas of the impairment provision at Endesa Chile for its ownership interest in Hidroaysén resulted into a charge against net income from discontinued operations of Ch$ 41,426 million (approximately US$ 73 million). 534 2015 Annual Report Enersis 37. Personnel Figures Enersis Américas personnel, including that of subsidiaries and jointly-controlled companies in the five Latin American countries where the Group is present, is distributed as follows as of December 31, 2015 and 2014: Country Chile Argentina Brazil Peru Colombia Total Country Chile Argentina Brazil Peru Colombia Total 12-31-2015 Managers and Main Executives 68 46 26 42 36 218 Professionals and Technicians  1,911 3,609 2,174 889 1,480 10,063 Workers and Others Total Average for the Period 266 1,168 459 - 28 1,921 2,245   4,823   2,659   931   1,544   12,202   2,364 4,724 2,686 941 1,633 12,348 12-31-2014 Managers and Main Executives 101 29 28 18 34 210 Professionals and Technicians  2,113 3,335 2,395 792 1,568 10,203 Workers and Others Total Average for the Period 310 1,109 272 141 30 1,862 2,524   4,473   2,695   951   1,632   12,275   2,503 4,223 2,648 944 1,613 11,931 It is important to note that Enersis Américas’ operations in Chile, beginning on February 1, 2016, are part of the new company named Enersis Chile (See Note 3.k, 5.1 and 41), which is being held for distribution to owners. 535 Consolidated Financial Statements                                  38. Sanctions The following companies belonging to the Group have received sanctions from the administrative authorities: a) Continuing Operations 1. Edesur S.A. - From January 1, 2013 to June 30, 2013, Edesur S.A. received 150 fines from the Energy Regulatory Body (Ente Nacional Regulador de la Electricidad - ENRE) totaling $23,640,000 Argentine pesos (approximately ThCh$1,287,437) for failure to comply with regulations on technical and commercial quality and on road and highway safety. Appeals against the fines have been filed. - From July 1, 2013 to September 30, 2013, Edesur S.A. received 111 fines from the Electricity Regulatory Body (ENRE) amounting to $28,270,000 Argentine pesos (approximately ThCh$1,539,588) for failure to comply with technical and commercial quality regulations, and $1,536,000 Argentine pesos (approximately ThCh$83,651) for failure to comply with road and highway safety regulations. Appeals against the fines have been filed. - From October 1, 2013 to December 31, 2013, Edesur S.A. received 8 fines from the Electricity Regulatory Body (ENRE) amounting to $ 2,766,029 Argentine pesos (approximately ThCh$ 150,638) for failure to comply with technical and commercial quality regulations, and $ 4,973,300 Argentine pesos (approximately ThCh$ 270,846) for failure to comply with road and highway safety regulations. Appeals against the fines have been filed. - From January 1, 2014 to June 30, 2014, Edesur S.A. received 13 fines from the Electricity Regulatory Body (ENRE) amounting to $ 10,685,000 Argentine pesos (approximately ThCh$ 581,906) for failure to comply with technical and commercial quality regulations, and 20 fines totaling $ 26,975,000 Argentine pesos (approximately ThCh$ 1,469,062) for failure to comply with road and highway safety regulations. In addition, the company has been ordered to pay $ 389,000,000 Argentine pesos (approximately ThCh$ 21,184,988) in compensation to users. - From July 1, 2014 to September 30, 2014, Edesur SA received 3 fines from the Electricity Regulatory Body (ENRE) amounting to $ 114,627 Argentine pesos (approximately ThCh$ 6,243) for failure to comply with technical and commercial quality regulations, and 12 fines totaling $ 13,112,132 Argentine pesos (approximately ThCh$ 714,088) for failure to comply with road and highway safety regulations. - From October 1, 2014 to December 31, 2014, Edesur SA received 4 fines from the Electricity Regulatory Body (ENRE) amounting to $ 35,914,427 Argentine pesos (approximately ThCh$ 1,955,904) for failure to comply with technical and commercial quality regulations, and 11 fines totaling $ 19,853,878 Argentine pesos (approximately ThCh$ 1,081,245) for failure to comply with road and highway safety regulations. - From January 1, 2015 to March 31, 2015, Edesur S.A. received 3 fines from the Electricity Regulator Body (ENRE) amounting to $ 10,532,955.18 Argentine pesos (approximately ThCh$ 573,626) for failure to 536 2015 Annual Report Enersis comply with technical and commercial quality regulations, and 7 fines totaling $ 3,524,428 Argentine pesos (approximately ThCh$ 191,941) for failure to comply with road and highway safety regulations. - From April 1, 2015 to June 30, 2015, Edesur S.A. received 8 fines from the Electricity Regulatory Body (ENRE) amounting to $ 36,646,432.59 Argentine pesos (approximately ThCh$ 1,955,769) for failure to comply with technical and commercial quality regulations. - From July 1, 2015 to September 30, 2015, Edesur S.A. received 2 sanctions from the Electricity Regulatory Body (ENRE) amounting to $ 11,989,572.66 Argentine pesos (approximately ThCh$ 652,954) for failure to comply with technical and commercial quality regulations, and 5 fines totaling $ 7,093,752 Argentine pesos (approximately ThCh$ 386,327) for failure to comply with road and highway safety regulations. - From October 1, 2015 to December 31, 2015, Edesur S.A. received 6 sanctions from the Electricity Regulatory Body (ENRE) amounting to $ 31,081,214 Argentine pesos (approximately ThCh$ 1,692,687) for failure to comply with technical and commercial quality regulations, and 1 fine totaling $ 21,840,000 Argentine pesos (approximately ThCh$ 1,189,409) for failure to comply with road and highway safety regulations. 2. Hidroeléctrica El Chocón S.A. - During 2013, the Electricity Regulatory Body (ENRE) imposed a fine of Th$ 20 Argentine pesos (approximately ThCh$ 1,089) on the company. HECSA has filed an appeal. - From January 1, 2014 to March 31, 2014 the Electricity Regulatory Body (ENRE) imposed a fine of Th$ 11 Argentine pesos (approximately ThCh$ 599). The company has filed an appeal. - Finally, from April 1, 2014 to June 30, 2014 the Electricity Regulatory Body (ENRE) imposed two fines amounting to Th$ 3 Argentine pesos (approximately ThCh$ 163). - During the year ended December 31, 2015, no fines have been imposed from the regulator. 3. Central Costanera S.A. - During the 2012 fiscal year and through to June 30, 2013, the company received two fines for a total amount of Th$ 47 Argentine pesos (approximately ThCh$ 2,560) from the General Customs Authority (Dirección General de Aduanas). Possible liability on the part of Mitsubishi is being assessed, in which case that amount could be claimed from this supplier. The ENRE also imposed two fines totaling Th$ 51 Argentine pesos (approximately ThCh$ 2,777). The company has filed an appeal. - From April 1, 2014 to June 30, 2014 the Electricity Regulatory Body (ENRE) imposed a fine of Th$ 40 Argentine pesos (approximately ThCh$ 2,178), which was paid on June 30, 2014. - Finally, from July 1, 2014 to December 31, 2014 the Electricity Regulatory Body (ENRE) imposed a fine of Th$ 102 Argentine pesos (approximately ThCh$ 5,555), which was paid on November 20, 2014. - During the year ended December 31, 2015, the Federal Administration of Public Revenue imposed of a fine of Th$ 59 Argentine pesos (approximately ThCh$ 3,185) and the payment of difference in taxes of Th$ 10 537 Consolidated Financial StatementsArgentine pesos (ThCh$ 531) for violation of Article 970 of Customs Code (i.e., for not having re-imported to the Country within the time period granted, goods temporarily exported). The Company appealed to the sanction because it duly complied with in time and substance with re-entering the goods exported, which was evidenced with the corresponding supporting documentation. 4. Central Dock Sud S.A. - During 2013, Central Dock Sud S.A. (CDS) was fined $ 794.11 Argentine pesos (approximately ThCh$ 43) by the Electricity Regulatory Body (ENRE) as a generating company on the Argentine wholesale electricity market (Mercado Eléctrico Mayorista - MEM), for failure to comply with Appendix 24 of The Procedures (Resolution ex-S.E. 61/92 and its amendments and additions) due to unavailability of Data Links on the Real- time Operating System (SOTR, its acronym in Spanish), during the period January to June 2012. - On July 30, 2013 Central Dock Sud S.A. (CDS) was fined $ 3,202.66 Argentine pesos (approximately ThCh$ 174) by the Electricity Regulatory Body (ENRE), for failure to comply with Appendix 24 of The Procedures (Resolution ex-S.E. 61/92 and its amendments and additions) due to unavailability of Data Links on the Real-time Operating System (SOTR, its acronym in Spanish), during the period January to June 2013. The company paid the fine. - From January 1, 2014 to June 30, 2014 Central Dock Sud S.A. (CDS) was fined $ 5,516.57 Argentine pesos (approximately ThCh$ 300) by the Electricity Regulatory Body (ENRE), for failure to comply with Appendix 24 of The Procedures (Resolution ex-S.E. 61/92 and its amendments and additions) due to unavailability of Data Links on the Real-time Operating System (SOTR, its acronym in Spanish), during the period July to December 2012. The company paid the fine. - During the year ended December 31, 2015, no fines have been imposed from the regulator. 5. Yacylec S.A. - During 2013, the Electricity Regulatory Body (ENRE) issued a penalty for transmission line down-time that was operated by Yacylec SA for $ 53,585 Argentine pesos (approximately ThCh$ 2,918). Yacylec S.A. made a partial payment of $ 1,668 Argentine pesos (approximately ThCh$ 91). - During 2014, the Electricity Regulatory Body (ENRE) issued a penalty for transmission line down-time for Th$ 231,925 Argentine pesos (approximately ThCh$ 12,631). To date fines plus interests amounting to $ 321,254 Argentine pesos (approximately ThCh$ 17,496) were transferred by Transener S.A. to Yacylec S.A. for collection, which are pending of payment due to the Argentine regulatory bodies have not adjusted the remuneration applicable to Yacylec S.A. - During the year 2015, the Electricity Regulatory Body (ENRE) issued a penalty for transmission line down- time for $ 26,130 Argentine pesos (approximately ThCh$ 1,423). To date fines plus interests amounting to $ 17,313 Argentine pesos (approximately ThCh$ 943) were transferred by Transener S.A. to Yacylec S.A. for collection, out of which $ 5,078 Argentine pesos (approximately ThCh$ 277) and $ 12,235 Argentine pesos (approximately ThCh$ 666) were deducted from CAMMESA from the payments of the monthly remuneration during the year 2015. The remaining balance is pending of payment to the Argentine regulatory bodies as they have not adjusted the remuneration applicable to Yacylec S.A. 538 2015 Annual Report Enersis 6. Transportadora de Energía S.A. - During 2013, the Electricity Regulatory Body issued penalties for programmed maintenance related matters in the Rincón Santa Maria transformer station and transmission line down-time for $ 38,487.65 Argentine pesos (approximately ThCh$ 2,096). Transportadora de Energía S.A. made in 2014 a partial payment of $ 46,072.38 Argentine pesos (approximately ThCh$ 2,509). - During 2014, the Electricity Regulatory Body issued penalties for programmed maintenance related matters at the Rincón Santa Maria transformer station and transmission line down-time for $ 15,820 Argentine pesos (approximately ThCh$ 862). To date, Transportadora de Energía S.A. made a partial payment including interests of $ 17,951 Argentine pesos (approximately ThCh$ 978). - During 2015, the Electricity Regulatory Body issued penalties for programmed maintenance related matters in the Rincón Santa Maria transformer station and transmission line down-time for $ 17,104 Argentine pesos (approximately ThCh$ 931). To date, Trasportadora de Energía S.A. made a partial payment including interest of $ 21,087 Argentine pesos (approximately ThCh$ 1,148). 7. Compañía de Transmisión del Mercosur S.A. - During 2013, the Electricity Regulatory Body issued five penalties for programmed maintenance related matters in the Rincón Santa Maria transformer station and transmission line down-time for $ 7,896.95 Argentine pesos (approximately ThCh$ 430) which Compañía de Transmisión del Mercosur S.A. in 2013 and 2014 made a payment of $ 11,337.32 Argentine pesos (approximately ThCh$ 617) including interests. - During 2014, the Electricity Regulatory Body issued 3 penalties for programmed maintenance related matters at the Rincón Santa Maria transformer station for $ 5,728 Argentine pesos (approximately ThCh$ 312) which Compañía de Transmisión del Mercosur S.A. in 2014 made a payment of $ 8,181 Argentine pesos (approximately ThCh$ 446) including interests. - During 2015, the Electricity Regulatory Body issued two penalties for programmed maintenance related matters in the Rincón Santa Maria transformer station and transmission line down-time for $ 34,618 Argentine pesos (approximately ThCh$ 1,885) which Compañía de Transmisión del Mercosur S.A. made a partial payment including interest of $ 44,749 Argentine pesos (approximately ThCh$ 2,437). 8. Ampla Energía S.A. - The company received seven fines in 2013 totaling $ 29,810,687 Brazilian reals (approximately ThCh$ 5,421,624) from the National Electrical Energy Agency (Agencia Nacional de Energía Eléctrica - ANEEL) due to problems with technical quality, erroneous evidence presented in inspections and for other reasons. The company appealed, and four fines are still awaiting final rulings. The other fines were either revoked or paid, for a total of $ 143,601 Brazilian reals (approximately ThCh$ 26,116). Only two fines were received in 2012 totaling $ 3,557,786 Brazilian reals (approximately ThCh$ 647,049), of which $ 2,112,600 Brazilian reals (approximately ThCh$ 384,215) have been paid. - In 2013, the company received 19 fines totaling $ 120,204 Brazilian reals* (approximately ThCh$ 21,861) from the environmental agencies (IBAMA, Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais 539 Consolidated Financial StatementsRenováveis, ICMBio - Instituto Chico Mendes de Conservação da Biodiversidade, INEA – Instituto Estadual de Ambiente and others) for unauthorized removal of vegetation, the death of animals through contact with the energy network, and construction in prohibited areas or without permission. The company filed appeals against almost all of the fines assessed, but no ruling has yet been given. Ampla has paid $ 66,310 Brazilian reals in fines (approximately ThCh$ 12,060). The company had received 14 fines in 2012 for a total of $ 76,426 Brazilian reals (approximately ThCh$ 13,899). (*) Clarification: The amount of some of the fines has not yet been determined; the amounts will be set after Ampla submits certain data. - In 2013, the company received four fines totaling $ 24,234 Brazilian reals (approximately ThCh$ 4,407) from the Consumer Defense and Protection Agency (PROCON/RJ) due to problems in reimbursing improper charges and other irregularities. The company has filed appeals against all of the fines, and rulings are pending. Ampla had received three fines in 2012 for a total of $ 20,840 Brazilian reals (approximately ThCh$ 3,790); rulings on the appeals filed by the company against these sanctions are also pending. - The company received one fine in 2013 from the employee defense agencies (SRTE) due to problems with formalities. The company filed an appeal, and the ruling is pending. The labor agencies have not specified the amount of the fine, which it does only after analyzing the appeal. Ampla had received five fines in 2012, for which rulings are also pending after appeals filed by the company. - In 2014, the company received two fines from the National Electrical Energy Agency (ANEEL) for technical quality, totaling €6,759,518 (approximately ThCh$ 5,223,165). The company has appealed, and one was rejected, while the other is still pending resolution. Ampla has paid €1,202,986 (approximately ThCh$ 929,563). In 2013, Ampla was fined 7 times for service quality totaling €9,368,747 (approximately ThCh$ 7,239,350), and has paid €843,869 (approximately ThCh$ 652,068). There are two appeals pending, which were filed by Ampla against the 2013 fines. - The company received 15 fines in 2014 totaling €80,263* (approximately ThCh$ 62,020) from the environmental agencies (ICMBio, Instituto Chico Mendes de Conservação da Biodiversidade and the INEA, Instituto Estadual de Medioambiente y órgano municipal del medioambiente) for unauthorized suppression of vegetation, the death of animals that have come in contact with the power network, waste dumping and power network construction in prohibited or unauthorized areas. The company has appealed almost all of the fines assessed, but no rulings have been handed down as yet. Ampla has paid €460 (approximately ThCh$ 355) in fines. The company received 19 fines in 2013 totaling €35,940* (approximately ThCh$ 27,771) from the environmental agencies for the same violations as in 2014. The company filed appeals against almost all of the fines received, but no rulings have been handed down as yet. Ampla paid three fines totaling €19,826 (approximately ThCh$ 15,320) in 2013. (*) Clarification: The amount of some of the fines has not yet been determined; the amounts will be set after Ampla submits certain data. - Ampla has received 14 fines in 2014 totaling €665,565 (approximately ThCh$ 514,291) from the Brazilian Consumer Defense and Protection Agency (Autarquía de Defensa a Protección del Consumidor, PROCON/ RJ) for problems with the quality of its power supply. It has appealed against the fines, only one appeal has been resolved, and Ampla has paid €1,958 (approximately ThCh$ 1,513). It received four fines totaling €7,616 (approximately ThCh$ 5,885) in 2013, for which appeals filed by Ampla also remain pending. - In 2014, the company received four fines from the employee defense agencies (SRTE) against which it has filed administrative appeals. An appeal was rejected and Ampla has paid the amount of €61.74 (approximately ThCh$ 48); the others have not yet received rulings. In 2013, Ampla received one fine for €641 (approximately ThCh$ 495) which has already been paid. 540 2015 Annual Report Enersis - In 2015, the company received 2 fines totaling €126,434 (approximately ThCh$ 97,689) the National Electrical Energy Agency (ANEEL) for “lower income” tariff matters. The appeals presented from Ampla were partially accepted and the amount of the fines was reduced to €101,173 (approximately ThCh$ 78,178). Ampla paid the fines. In 2014, Ampla received 2 fines totaling €6,743,609 (approximately ThCh$ 5,210,872) for quality of service, of which Ampla has paid €974,291 (approximately ThCh$ 752,847). There is pending of analysis one appeal filed by Ampla against a fine from 2014. - The company received 36 fines in 2015 totaling €197,563 (approximately ThCh$ 152,659) from the environmental agencies (ICMBio, Instituto Chico Mendes de Conservação da Biodiversidade and the INEA, Instituto Estadual de Medioambiente y órgano municipal del medioambiente) being 8 warnings and 28 fines for power network construction in prohibited or unauthorized areas, the death of animals at a substation and authorized suppression of vegetation and others (notification non-compliance). The company has appealed almost all of the fines assessed, but no rulings have been handed down as yet. Ampla has paid €540 in fines in 2015. In 2014, the company received 17 fines totaling €80,263* (approximately ThCh$ 62,020) from the environmental agencies (ICMBio, Instituto Chico Mendes de Conservação da Biodiversidade and the INEA, Instituto Estadual de Medioambiente y órgano municipal del medioambiente) for unauthorized suppression of vegetation, the death of animals that have come in contact with the power network, waste dumping and power network construction in prohibited or unauthorized areas. The company has appealed almost all of the fines received, but no rulings have been handed down as yet. Ampla has paid €460 (approximately ThCh$ 355) in fines. (*) Clarification: The amount of some of the fines has not yet been determined; the amounts will be set after Ampla submits certain data. - In 2015, Ampla has received 11 fines totaling €1,768,001 (approximately ThCh$ 1,366,157) from the Brazilian Consumer Defense and Protection Agency (Autarquía de Defensa a Protección del Consumidor, PROCON/RJ) for problems with the quality of its power supply. Ampla has filed 5 appeals against the fines and there are 6 administrative appeals pending of judgment from the agency. In 2014, Ampla received 14 fines totaling €663,530 (approximately ThCh$ 512,718). Ampla appealed against all of the fines, which remain pending. Ampla has filed 4 appeals against the fines and there are 8 administrative appeals pending of judgment form the agency. Ampla has paid 2 fines for €2,343 (approximately ThCh$ 1,810). - In 2015, Ampla has not receive any fines from the employee defense agencies (SRTE). In 2014, the company received four fines from the employee defense agencies (SRTE) against which it has filed administrative appeals. An appeal was rejected and Ampla has paid the amount of €62 (approximately ThCh$ 48); the others have not yet received rulings. 9. Companhia Energética do Ceará (Coelce) - In 2013, the company received 32 fines totaling $ 34,877,282 Brazilian reals (approximately ThCh$ 6,343,078) from the National Electrical Energy Agency (ANEEL) or its local representative (ARCE) for accidents with third parties (there were seven), problems with technical quality, erroneous evidence submitted in inspections, irregularities with the Coelce Plus project, and other reasons. The company has filed appeals, and final decisions are pending on 26 sanctions. The other fines were either revoked or paid, for a total of $ 395,125 Brazilian reals (approximately ThCh$ 71,861). Coelce had received 24 fines totaling $ 53,810,352 Brazilian reals in 2012 (approximately ThCh$ 9,786,403), of which $ 707,423 Brazilian reals (approximately ThCh$ 128,658) have been paid; the final decision on 16 of the fines is pending. 541 Consolidated Financial Statements- The company was not fined by the environmental agencies in 2014 and 2013 (IBAMA, Instituto Brasileiro do Meio Ambiente e dos Recursos Naturals Renováveis, and ICMBio, Instituto Chico Mendes de Conservação da Biodiversidade). - Coelce received four fines in 2013 totaling $ 21,837 Brazilian reals (approximately ThCh$ 3,971) from the Consumer Defense and Protection Agency (PROCON/CE) for alleged violations of consumer rights. The company filed appeals against the fines, and one has yet to be resolved. The other appeals were rejected, and Coelce paid $ 15,901 Brazilian reals (approximately ThCh$ 2,892) in fines. Two fines for a total of $ 12,953 Brazilian reals (approximately ThCh$ 2,356) were received in 2012, which have been paid. - The company received two fines in 2013 from the employee defense agencies (SRTE) due to problems with formalities. The appeal filed by the company was unsuccessful, and the amount of $ 9,694 Brazilian reals (approximately ThCh$ 1,763) was paid. The company was not fined by these agencies in 2012. - The company has received eight fines in 2014 totaling €8,702,775 (approximately ThCh$ 6,724,745) from the National Electrical Energy Agency (ANEEL) or its local representative (ARCE) for accidents with third parties among the population, technical quality and errors in the asset base. Coelce has paid €16,319 (approximately ThCh$ 12,610) for one of the fines, and has appealed against the rest. The company received 32 fines from ANEEL or ARCE in 2013 totaling €10,938,249 (approximately ThCh$ 8,452,124) for accidents with third parties among the population (there were seven), problems with technical quality, erroneous evidence presented during inspections, irregularities with the Coelce Plus Project and other reasons. The company filed appeals, of which 17 are still pending the final ruling. The other fines were either revoked or paid, for a total of €1,418,561 (approximately ThCh$ 1,096,140). - The company was not fined by the environmental agencies in 2014 and 2013 (IBAMA, Instituto Brasileiro do Meio Ambiente e dos Recursos Naturals Renováveis, and ICMBio, Instituto Chico Mendes de Conservação da Biodiversidade). - In 2014, the company received four fines in 2014 from the Brazilian Consumer Defense and Protection Agency (PROCON/CE), amounting to €24,743 (approximately ThCh$ 19,119), for alleged missed deadlines and damage to equipment. Coelce has filed three administrative appeals and paid one fine for €933 (approximately ThCh$ 721). The company received four fines in 2013 from PROCON/CE totaling €7,220 (approximately ThCh$ 5,579) for allegedly violating consumers’ rights. The company filed appeals against the fines without success and Coelce has paid the fines. - In 2014, the company received six violation notifications from the employee defense agencies (SRTE), for accidents suffered by workers. It received two fines in 2013 from the SRTE for failure to comply with formalities. Coelce paid €3,206 (approximately ThCh$ 2,477) for the 2013 fines. - In 2015, the company has received 4 fines totaling €2,517,677 (approximately ThCh$ 1,945,441) from the National Electrical Energy Agency (ANEEL) or its local representative (ARCE) for technical quality problems, the company filed appeals against these fines. Coelce has paid €85,593 (approximately ThCh$ 66,139) for two of the fines. The two remaining two appeals are pending. In 2014, the company received 8 fines totaling €8,676,161 (approximately ThCh$ 6,704,180) for accidents with third parties among the population, technical quality and errors in the asset base. Coelce has paid €16,270 (approximately ThCh$ 12,572) for two of the fines, and has appealed against the rest. - In 2015, the company has received 1 fine totaling €5,406 (approximately ThCh$ 4,177) for unauthorized 542 2015 Annual Report Enersis suppression of vegetation and other (notification noncompliance). The company has filed appeals against the fine received, but has yet to be resolved. In 2014, the company was not fined by the environmental agencies (IBAMA, Instituto Brasileiro do Meio Ambiente e dos Recursos Naturals Renováveis, and ICMBio, Instituto Chico Mendes de Conservação da Biodiversidade). - In 2015, the company has received 3 fines from the Brazilian Consumer Defense and Protection Agency (PROCON/ CE) amounting to €1,649,834 (approximately ThCh$ 1,274,848) for alleged missed deadlines in rendering services. Coelce has paid €7,407 (approximately ThCh$ 5,723) for one of the fines and filed appeals against two fines, but has yet to be resolved. In 2014, the company received 4 fines totaling €26,492 (approximately ThCh$ 20,471) for alleged missed deadlines and damage to equipment. Coelce has filed 3 administrative appeals, of which one remain pending. Coelce has paid €6,874 (approximately ThCh$ 5,312) for these fines. - In 2015, the company has received 14 violation notifications from the employee defense agencies (SRTE) for failure to comply with formalities and social contributions. In 2014, the company received six violation notifications from the employee defense agencies (SRTE), also for failure to comply with formalities and social contributions. 10. CIEN (Companhia de Interconexión Energética S.A.) - The company received one fine in 2013 for $ 32,136 Brazilian reals (approximately ThCh$ 5,845) from the National Electrical Energy Agency (ANEEL) for a formality (a failure to submit documentation). The company appealed, and the decision is pending. The company was not fined by this agency in 2012. - The company has not been fined for other matters in 2012 and 2013 (environmental, consumer or labor). - Cien has not been fined by the National Electrical Energy Agency (ANEEL) or by any other supervisory agency in 2014. In 2013, the company received one fine from the National Electrical Energy Agency (ANEEL) for €10,100 (approximately ThCh$ 7,804) for a formality (a failure to present documentation). Cien filed an appeal, which was accepted, and the fine was cancelled by the judicial body. - In 2014, the company received two fines from the employee defense agencies (SRTE) and the company has filed appeals against them. Cien has paid a fine of €61.74 (approximately ThCh$ 48) and the appeal against the other fine has not yet been tried. In 2013, the company was not fined. - In 2014 and 2015, CIEN has not been fined by the National Electrical Energy Agency (ANEEL) or any other regulatory body. - In 2015, the company was not fined. In 2014, the company received two fines from the employee defense agencies (SRTE) and the company has filed appeals against them. Cien has paid a fine of €61.74 (approximately ThCh$ 48) and the appeal against the other fine has not yet been tried. - The company has not been fined for other matters in 2014 and 2015 (environmental). 11. Edelnor S.A.A. - In February 2013, Edelnor S.A.A. paid a fine of S/1,861.63 (approximately ThCh$ 387) to SUNAT for failure to pay IGV (Peru’s value added tax) on time. 543 Consolidated Financial Statements- During the 2013 fiscal year, the Supervisory Agency for Investments in Energy and Mines (OSINERGMIN) imposed 23 fines totaling S/2,544,177.91 (approximately ThCh$ 529,380) on Edelnor S.A.A. for alleged failure to comply with technical and commercial standards. - In October 2013, Edelnor SAA was fined by the SUNAT for 2009 income tax assessments. On appeal, a partially favorable result was obtained, so the updated value of the fine became S/4,150,479 (approximately ThCh$ 863,611), which was paid by Edelnor SAA on September 8, 2014, after applying a rebate. Nonetheless, Edelnor SAA filed an appeal, which as of December 31, 2015, is pending of resolution. - During 2014, OSINERGMIN imposed 22 fines on Edelnor S.A.A. totaling S/2,015,383 (approximately ThCh$ 419,351) for failure to comply with technical and commercial regulations. - Edelnor S.A.A. was fined in June 2014 by the Municipality of Huaral for an alleged omission in the calculation of property tax (impuesto predial) for the years 2010 to 2014. The amount of the fine, restated at March 31, 2015, was S/61,123 (approximately ThCh$ 12,718). Edelnor S.A.A. appealed against the fine, and it was notified of a resolution annulling the fine. The proceeding was favorable resolved to Edelnor. - During 2015, OSINERGMIN imposed 10 fines totaling S/1,481,359.57 (approximately ThCh$ 308,234) on Edelnor S.A.A. for failure to comply with technical and commercial standards. - In June 2015, Edelnor S.A.A. was fined by the SUNAT for 2010 income tax assessments. In July 2015, Edelnor paid the fine for S/1,612,507 (approximately ThCh$ 335,522) adopting a current gradually regime. Nonetheless, Edelnor has filed an appeal which as of December 31, 2015, is pending resolution from the SUNAT. - In June 2015, OSINERGMIN imposed fines totaling S/23,642 (approximately ThCh$ 4,919) on Edelnor S.A.A. for alleged omission to declare the Regulation Contribution (Aporte por Regulación) for several months during the year 2014. The fines were not challenged and have already been paid. 12. Edegel S.A.A. - In April 2013, Edegel S.A.A. received the following fines by the OSINERGMIN: (i) S/.7,604.57 (approximately ThCh$ 1,582) for failure to perform maintenance in a timely fashion on its thermal generation units for the last quarter of 2008; (ii) S/.200,941.48 (approximately ThCh$ 41,811) for failure to perform maintenance in a timely fashion on its hydraulic generation units for the last quarter of 2008; (iii) S/40,700 (approximately ThCh$ 8,469) (11 Tax Units, UIT) for failure to submit technical justification in a timely fashion for the second quarter of 2008; and (iv) S/.106,073.17 (approximately ThCh$ 22,071) for failure to have its generation unit available after having been notified that it was required by the SEIN for the fourth quarter of 2008. Edegel SAA has not challenged the fines (i) and (iv), and on May 2, 2013, paid them to obtain prompt payment benefits. However, by appeal, Edegel S.A.A. has challenged the fines (ii) and (iii). The Court of Appeals for Energy and Mining Sanctions for OSINERGMIN, through Resolution No. 107-2014-OS/TASTEM-S1 notified Edegel SAA on April 15, 2014, that the General Management Resolution imposing the fine was invalid, because the appropriate body was Electrical Oversight Division at OSINERGMIN. Therefore, on September 1, 2014, Edegel S.A.A. was notified by Resolution No. 1380-2014 of the Electrical Oversight Division at OSINERGMIN, of the same fines contained in the General Management Resolution. 544 2015 Annual Report Enersis In response, Edegel S.A.A. has resubmitted the appeal, noting that sanctions (i) and (iv) were already paid. On September 17, 2014, Edegel S.A.A. filed an appeal with the OSINERGMING requesting to the Electrical Oversight Division to file the appeal with the second instance body, requesting to declare valid the petition and to proceed with the determination of the applicable fines. - In May 2013, Edegel S.A.A. was fined by the SUNAT for issues with its 2007 tax assessment. The amount of the fine, restated at December 31, 2015, was S/.9,755,900 (approximately ThCh$ 2,029,959). An appeal filed with the Tax Court is pending. - In June 2013, Edegel S.A.A. was notified by ElectroPeru S.A. of a penalty applied under contract no. 132991, “Additional Generation Capacity Service through Conversion of Equipment to the Dual Generation System.” The penalty, amounting to S/.481,104.53 (approximately ThCh$ 100,106), was applied for breach of the conditions for executing the service offered under that contract. - In July 2013, Edegel S.A.A. was fined by the OSINERGMIN for S/. 453.86 (approximately ThCh$ 94) for exceeding the deadline to perform maintenance activities to the hydro generation units in accordance with number 6 of the Procedure for the Supevision of the Availability and Operative State of the Generation Units of the SEIN. The fine was paid before the 15 days mandatory requirement for S/. 340.40 (approximately ThCh$ 71). - In July 2013, Edegel S.A.A. was fined by the OSINERGMIN for S/. 4,070 (approximately ThCh$ 847) for failure to provide technical justification within the deadline established in number 6 of the Procedure for the Supevision of the Availability and Operative State of the Generation Units of the SEIN. The fine was paid before the 15 days mandatory requirement for S/. 3,052.50 (approximately ThCh$ 635). - In November 2013, Edegel S.A.A. was fined S/37,000 (approximately ThCh$ 7,699 or 10 Tax Units – UIT) by the Callahuanca District Municipality (MDC) in Municipal Resolution 060-2013. The MDC imposed the fine for failure to submit the technical inspection report on multidisciplinary civil defense safety as required under Law 29664 and its regulations. - In November 2013, Edegel S.A.A. was fined by the SUNAT for issues with its 2008 tax assessment. The amount of the fine, restated at December 31, 2015, was S/1,759,227 (approximately ThCh$ 366,051). The appeal filed is pending resolution by the SUNAT. - In December 2013, Scotiabank Peru S.A.A., with whom Edegel S.A.A. has signed a lease agreement for the Santa Rosa Project, was fined by the SUNAT for duties allegedly unpaid in an import operation. The amount of the fine, restated at December 31, 2015, was S/15,721.523 (approximately ThCh$ 3,271). Scotiabank Peru S.A.A. filed the respective appeal in January 2014 and is yet pending of resolution. - On December 23, 2013, the OSINERGMIN filed an administrative proceeding against Edegel S.A.A. for outdated payment of the regulation contribution. Finally, on June 5, 2015, the OSINERGMIN archived the mentioned proceeding. - On January 28, 2014, the National Authority of Water (ANA) filed an administrative proceeding against Edegel S.A.A. for reuse of industrial sewage water treated for garden irrigation. Subsequent to Edegel S.A.A presenting its case, on June 5, 2015, ANA archive the proceeding. - On March 20, 2014, the OSINERGMIN filed an administrative proceeding against Edegel S.A.A. for non- 545 Consolidated Financial Statementscompliance of current regulations on implementation and execution of the Fondo de Inclusión Social Energético (FISE). On June 12, 2015, the proceeding was archived. - In May 2014, Electrical Oversight Division Resolution No. 743-2014 issued by the OSINERGMIN on May 27, 2014, notified Edegel S.A. of a fine of 0.50 tax units (UIT) for having violated the CCIT indicator, regarding compliance with the correct calculation of indicators and compensation amounts for voltage quality, in the second half of 2012. The fine was imposed in accordance with number 5.1.2, section B) of the Procedures for Supervising the Technical Standards for Electricity Service Quality and their Methodology Base. The fine for S/. 1,425. (approximately ThCh$ 297) has been paid. - In June 2014, Edegel S.A.A corrected an omission in its 2009 Income Tax following an assessment and paid the associated fine of S/.2,070 (approximately ThCh$ 431). - In September 2014, Edegel S.A.A was fined by the SUNAT for issues with its 2009 tax assessment for an amount updated at September 30, 2014 of S/.315,230 (approximately ThCh$ 65,591). The fine has been accepted and paid by Edegel. - On December 4, 2014, the OSINERGMIN notified Edegel S.A.A. to the filing of an administrative proceeding for non-compliance of the procedures to verify availability and the operative status of the generation units of SEIN. On April 24, 2015, Edegel S.A.A. paid the fine for S/2,928.42 (approximately ThCh$ 609) imposed by Directorial Resolution 691-2015. - On March 11, 2015, the Environmental Assessment and Supervisory Agency (OEFA) filed an administrative proceeding against Edegel S.A.A. for noise contamination caused for failing to install noise mitigation panels at the Santa Rosa de Ventanilla Thermal Plan. Through Resolution No. 388-2015-OEFA-DSAI issued on April 30, 2015, Edegel S.A.A. received a fined for 1 to 100 UIT. On June 16, 2015, Edegel S.A.A filed an appeal against such Resolution, which was accepted on June 19, 2015. On September 18, 2015, Edegel S.A.A. received notice of Resolution No. 039-2015-OEFA/TFA-SEE which annulled Directorial Resolution No. 388-2015-OEFA/DFSAI and consequently to apply retrospectively the administrative process to the date when the violation occurred; and re-submit the case to the Directorate of Oversight, Sanction and Application of Incentives in order to it to resolve again. - On May 13, 2015, the OSINERGMIN started an administrative proceeding against Edegel S.A.A. for non- compliance with the Electric Concessions Law and the Transmission of Electricity Final Concession Contract related to transmission line 220kV Callahuanca-Chavarria, since it does not comply with formalities of the goods affected to such concession as stated in term No.9 of such contract. Edegel S.A.A. has presented its corresponding case. On December 15, 2015, it was received notice of Resolution No. 2916 – 2015, which fined Edegel S.A.A in S/. 986,710 (approximately ThCh$ 205,310) for non-compliance with number 9.4 of the Transmission of Electricity Final Concession Contract related to transmission line 220kV Callahuanca- Chavarria. On January 6, 2016, Edegel S.A.A filed an appeal against such Resolution. - In June 2015, Edegel S.A.A. received a fine by the OSINERGMIN for an alleged omission in the declaration of the Regulation Contribution declaration for several months during the years 2011 to 2014. The contingency updated to December 31, 2015 amounts to S/85,695 (approximately ThCh$ 17,831). Edegel S.A.A. accepted the fines and paid them without filing any appeal. - On October 13, 2015, Edegel S.A.A. received notice of Resolution No. 2391-2015 issued on September 29, 2015, by which the OSINERGMIN resolved to: 1. Fine Edegel S.A.A. in S/.237.96 (approximately ThCh$ 50) 546 2015 Annual Report Enersis for exceeding the deadline to perform maintenance activities to generation unit G1 at Matucana power plant during the first quarter of 2014; 2. Fine Edegel S.A.A. in S/. 8,927.03 (approximately ThCh$ 1,857) for exceeding the deadline to perform maintenance activities to the generation unit TG8 at Santa Rosa power plant during the first quarter of 2014 and to the generation unit TV at Ventanilla power plant during the second quarter of 2014; 3. Fine Edegel S.A.A. in 1.99 UIT for failure to submit within the mandatory deadline the technical justification for the first quarter of 2014 for generation unit G1 at Matucana power plant; generation unit G8 at Santa Rosa power plant; and generation unit TV at Ventanilla power plant. On November 3, 2015, Edegel S.A.A. filed an appeal against 2nd and 3rd articles of Resolution No. 2391-2015, on the same date, Edegel S.A.A. paid the fine related to Article 1 of Resolution No. 2391-2015. - In December 2015, Edegel S.A.A. was fined by the SUNAT for the determination of the payments on account of March, April and June of 2010 for an updated amount as of November 30, 2015 of S/ 14,211 (approximately ThCh$ 2,957); and for the lower determination of balance in favor of the Income Tax for the year 2010 for an updated amount as of December 31, 2015 of S/ 17,103,702 (approximately ThCh$ 3,558,853). The claim was already filed and is pending resolution from the SUNAT. 13. Empresa Eléctrica de Piura S.A. - In February 2013, Empresa Eléctrica de Piura S.A. was fined for an amount of S/7,005 (approximately ThCh$ 1,458) for the payment of regulation contributions for the years 2004 and 2005. The fine was already paid. - In August 2013, Empresa Eléctrica de Piura S.A. was fined S/15,873 (approximately ThCh$ 3,303 or 5.72 Tax Units – UIT) by the OSINERGMIN for the following violations of the Procedure for Overseeing Technical Quality Standards for Electrical Services and its Base Methodology (“NTCSE”): (i) having violated the CMRT indicator regarding compliance with measurements required under the NTCSE based on voltage measurements reported for the second half of 2011; and (ii) having violated the CCII indicator regarding correctly calculating indicators and compensation amounts from service interruptions in the second half of 2011. The fine was paid in September 2013. - In August 2013, Empresa Eléctrica de Piura S.A. was notified by the Ministry of Energy and Mines of a penalty of S/691,500 (approximately ThCh$ 143,884) imposed of under the “Talara Plant Cold Reserve Contract (CT Malacas3)” due to delays in the commercial startup of the Talara Cold Reserve Generation Plant. - In September 2013, Empresa Eléctrica de Piura S.A. learned of Resolution No. 1 issued by Coactive Executor OSINERGMIN applying a penalty of 42.17 UIT, equivalent to S/156,029 (approximately ThCh$ 32,466) for failure to hold average stocks of LPG during the months of January, February, March, April, May, and June 2004. On October 21, the Coactive Executor suspended the Coactive Execution proceedings for collection on the fine. - On September 24, 2013, Empresa Eléctrica de Piura S.A. was fined S/3,700 (approximately ThCh$ 770 or 1 Tax Unit – UIT) by the OSINERGMIN because EDAGSF was not declared in the Extranet System in F08 format, violating the Procedure for Overseeing Implementation and Operation of the Systems for Automatic Rejection of Generation Loads. As the fine was paid within fifteen (15) days of notification, it was reduced by 25% to S/2,775 (approximately ThCh$ 577). - On April 10, 2014, through Resolution No. 233-2013-OEFA/DFSAI/SDI, the Environmental Assessment and Supervisory Agency (OEFA) started an administrative proceeding against Empresa Eléctrica de Piura S.A. for omission of information in its reports presented related to gas emissions in its 2011 547 Consolidated Financial StatementsAnnual Report. On May 8, 2015, through Directorial Resolution No. 438-2015-OEFA/DFSAI, it was declared the factual administrative responsibility of Empresa Eléctrica de Piura S.A. in the violation mentioned. Neither fine nor corrective measures were imposed as the violation was remediated. On June 22, 2015, Empresa Eléctrica de Piura S.A. was notified that Directorial Resolution No. 438-2015-OEFA/DFSAI was consented. - In November 2014, Banco de Credito del Peru SA signed a lease with Empresa Electrica de Piura SA which referred to the Expansion Project at Thermal Electric Plant Malacas - TG5. The Bank was fined in November 2014 by the SUNAT for allegedly unpaid taxes on imports for an amount updated on December 31, 2015 of S/.9,988,586 (approximately ThCh$ 2,078,375). Banco de Credito del Peru SA filed the respective appeal in December 2014, which is still pending of resolution. - On March 5, 2015, Empresa Eléctrica de Piura S.A. was notified through Resolution No. 3 of the Proceeding No. 0395-2011-OS-EC-Cob. Mul. issued on February 25, 2015, which ruled: (i) to release the suspension of the coactive execution procedure and to continue with it; (ii) to continue with the collection of the obligation until its extinguishment; and (iii) to request to Empresa Eléctrica de Piura S.A., in a period of seven (7) business days, to comply with the payment of the debt amounting to S/599,062 (approximately ThCh$ 124,650) under penalty of issuing precautionary actions in accordance with the law. - In July 2015, Empresa Eléctrica de Piura S.A. was notified through Resolutions of a fine for omissions in the payments of Income Taxes of year 2010. Such fine was paid for a total amount of S/30,383 (approximately ThCh$ 6) in August 2015. 14. Chinango S.A.C. - In January 2013, Chinango S.A.C. received a fine totaling S/367,915 (approximately ThCh$ 76,554) from the SUNAT for issues with the determination of its 2010 income tax. The company challenged the measure despite paying a reduced fine in February 2013. The appeal filed is pending resolution by the Tax Court. - In June 2013, Chinango S.A.C. was notified through Coactive Execution Resolution 0398-2012 of a fine of S/3,800 (approximately ThCh$ 791) imposed by the Supervisory Agency for Investments in Energy and Mines (OSINERGMIN) for the following infractions: (i) failure to comply with the CCII indicator in the first half of 2010 as required under paragraph A of number 5.2.2 of the “Procedure for Overseeing the Technical Quality Standard for Electrical Services and its Base Methodology”; (ii) failure to comply with the CPCI indicator in the first half of 2010 as required under paragraph C) of number 5.2.2 of the “Procedure for Overseeing the Technical Quality Standard for Electrical Services and its Base Methodology”; and (iii) submitting empty service interruption reports (RIN and RDI files) for the first half of 2010 despite the interruptions affecting its customers, as required under Article 31 of the Electricity Concession Law. - In September 2013, Chinango S.A.C. was notified through Electrical Oversight Division Resolution No. 19693 issued by the Supervisory Agency for Investments in Energy and Mining (OSINERGMIN) of a fine of S/1,850 (approximately ThCh$ 385 or 0.50 Tax Units – UIT) for: (i) failure to submit voltage quality information in a timely fashion in the first half of 2012. As the fine was paid within fifteen (15) days of notification, it was reduced by 25%. - In March 2014, Chinango S.A.C. was notified through Coactive Execution Resolution No. 0350-2014 that it must pay a balance of S/12,100 (approximately $ 2,518) on a fine imposed by the OSINERGMIN. The total amount of the fine, imposed through sanction No. 014799-2012-OS/CG, was 11 tax units (UIT) or S/48,800 (approximately ThCh$ 10,154). 548 2015 Annual Report Enersis - In January 2014, Chinango S.A.C. was fined by the SUNAT for issues with its 2011 income tax assessment in the amount of S/.613.390 (approximately ThCh$ 127,631), that was paid in February 2014 using a rebate system and without prejudice to the respective appeal. The filed appeal was resolved against Chinango SAC by the SUNAT resolution notified in December 2014, against which Chinango SAC lodged the respective appeal, which as of December 31, 2015 is still pending resolution. - On May 19, 2015, the Environmental Assessment and Supervisory Agency (OEFA) filed an administrative proceeding against Chinango S.A.C for allegedly presenting an incomplete third quarterly report of environmental monitoring for the year 2013. On June 16, 2015, Chinango S.A.C. presented its corresponding case. On October 27, 2015, it was received notice of Resolution No. 616-2015-OEFA/DFSAI issued on June 30, 2015, by which it was resolved to declare the administrative responsibility of Chinango S.A.C and stated that it is not relevant to dictate corrective measures, and informed Chinango S.A.C. that against the resolution it is possible to file a reconsideration claim and an appeal within 15 business days and to register this Resolution to the Register of Administrative Acts. On December 3, 2015, through Resolution 1078-2015 DFSAI-OEFA it was declared accepted the resolution giving administrative responsibility to Chinango S.A.C. - In June 2015, Chinango S.A.C. was fined by the OSINERGMIN for an alleged omission in presenting the Regulation Contribution declaration in several months during the year 2014. The contingency updated to September 30, 2015 is for S/79,857 (approximately ThCh$ 16,616). Chinango S.A.C. accepted the fines imposed and paid them without filing any appeal. - In September 2015, Chinango S.A.C. was notified through several Resolutions of Fines for S/1,424.122 (approximately ThCh$ 296) related to the determination of the Income Tax for year 2012 and the corresponding payment in such year. In October 2015, Chinango paid the aforementioned debt using the current gradually regime, irrespective of filing the corresponding appeal. 15. Generalima S.A.C. - In December 2015, before receiving notice from the SUNAT on the corresponding resolutions, Generalima S.A.C. paid voluntarily certain fines for an updated amount as of December 22, 2015 of S/ 15,179 (approximately ThCh$ 3,158) for keeping delayed accounting records which was identified with occasion of the procedures for and linked to the lower determination of the balance in favor for Income Taxes in year 2009, which updated as of December 31, 2015 amounts to S/66,911 (approximately ThCh$ 13,923). 16. Emgesa - On July 30, 2013, through Resolution 20138100353652, the Superintendency of Public Household Services (SPPD) imposed of a fine of warning (without value) to Emgesa S.A. ESP, for failure to attend a non-regulated user (SUNCHINE BOUQUET LTDA). Through resolution 20148150176905 issued on October 28, 2014, the SPPD confirmed the fine. Closed. 17. Codensa - In 2013, as a result of a claim filed by the company Tubotec S.A.S., the Superintendency of Public Household 549 Consolidated Financial StatementsServices applied a penalty of CP167,743,200 Colombian pesos (approximately ThCh$ 40,801) on Codensa for failure to comply with capacity quality indicators. Closed and paid. - In November 2013, Codensa paid a fine of CP22,668,000 Colombian pesos (approximately ThCh$ 5,514) imposed by the Consumer Protection Investigation Bureau of the Industry and Commerce Superintendency in accordance with Resolution 57393 of September 30, 2013. The penalty was due to an error made by the company’s invoicing service for having erroneously collected on a loan from a claimant who reported the mistake on several occasions. Closed and paid. - In March 2014, the Superintendency of Public Household Services (SSPD) fined Codensa CP77,814,500 Colombian pesos (approximately ThCh$ 30,539) for failure to comply with operating regulations regarding TAPS maneuver time. The SSPD confirmed the sanction in Resolution 2014240005655 of March 7, 2014, stating that Codensa S.A. E.S.P. violated the operating regulation by exceeding the maximum time permitted. Closed and paid. - In March 2014, the Superintendency of Public Household Services (SSPD) fined Codensa CP127,332,000 Colombian pesos (approximately US$ 49,973) for a failure in the DES service-non-compliance indicator. The fine was imposed through Resolution 2014240005125 of March 5, 2014 after the company failed to provide continuous public electricity service when it exceeded the maximum DES limits as established in Article 136 of Law 142 of 1994 and number 6.3.4 of CREG Resolution 070 of 1998. Having exhausted the appeals before the SSPD, a further appeal has been filed before the Administrative Courts. Closed and paid. - On July 16, 2014, through Resolution No. 20142400025295, the Superintendency of Public Household Services (SPPD) confirmed the fine for CP13,558,500 (approximately U.S.$ 5,321) to Codensa for non-compliance with Resolution Creg.097 of 2008, since it failed to confirm within the deadline (April 6, 2010) the compliance with the requirements to initiate the application of the quality of service scheme. Closed and paid. - On November 17, 2015 through Resolution No. 20152400051515, the Superintendency of Public Household Services (SPPD) apply a penalty to Codensa of CP20,619,200 for a matter of recognition of asset ownership of the gym named “Hard Body”. Codensa filed a claim which is pending of resolution. 18. Sociedad Portuaria Central Cartagena (SPCC) - The Port and Transportation Superintendency, through Resolution 1312 of January 30, 2014, fined SPCC CP2,142,400 Colombian pesos (approximately ThCh$ 521) for reporting accounting and financial information for the 2010 year at the improper time. Resolutions 6051 of 2007 and 759 of 2010 required that this information be provided in February of 2011. The fine was paid on February 14, 2014. Closed and paid. 550 2015 Annual Report Enersis b) Discontinued Operations 1. Endesa Chile - In January 2013, Endesa Chile was notified of SEF Exempt Resolution 2496 fining the Company 10 UTA, equivalent to 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 Isla de Maule 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 Isla de Maule facility. This resolution is currently being challenged. Total: 60 UTM, equivalent to ThCh$ 2,626. - Endesa received notification in September 2013 of ORD No. 603 issued by the Superintendency of the Environment (SMA) initiating sanction proceedings and filing charges against Endesa 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 Superintendence’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 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 for these environmental breaches applying a fine of 8,640.4 UTA (approximately ThCh$ 4,537,247). Endesa filed a counter-claim of illegality before the Third Environmental Court of Valdivia, which on March 27, 2015, resolved to partially annul the sanction imposed by the SMA and order it to consider the aggravated circumstances in relation to the 551 Consolidated Financial Statementscalculation of the fine. The parties, against such resolution, filed an appeal with the Supreme Court, which finally rejected Endesa’s appeal, and confirming the fine imposed of by the SMA. Closed and paid. - 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. Closed and paid. - On May 20, 2014, the Valparaiso 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 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 Superintendency) fined Endesa 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 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. - The Labor Directorate, through resolution No.1209/15/16, fined Endesa Ch$ 2,594,400 for failure to fulfill labor resolutions authorizing an exceptional distribution of the working day. The fine was paid. - On September 25, 2015, the Health SEREMI of the Biobío Region, through resolution No. 158s3890 fined Endesa 500 UTM (approximately ThCh$ 22,122) for failure in supervising 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 filed an administrative proceeding, which is currently pending. 2. Empresa Eléctrica Pehuenche S.A. - On October 2, 2013, the Securities and Insurance Superintendency (SVS) fined Empresa Eléctrica Pehuenche S.A. and its CEO 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 General Manager, Lucio Castro Márqez, 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.’s against Empresa Eléctrica Pehuenche S.A. based on the fact that, on April 24, 2012, the Tricahue S.A. General Manager went to Pehuenche’s offices to examine the Minutes 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. 552 2015 Annual Report Enersis On August 24, 2012, Tricahue Inversiones S.A. withdrew its complaint filed against Empresa Eléctrica Pehuenche S.A. The Company and its General Manager, 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 S.A. - During the fiscal year 2013, Chilectra S.A. was sanctioned by the Superintendency of Electricity and Fuels with 7 fines amounting to ThCh$ 227,507. - During the fiscal year 2014, Chilectra S.A. was sanctioned by the Superintendency of Electricity and Fuels with 8 fines amounting to ThCh$ 459,453. - As of the fourth quarter of 2015, Chilectra S.A. was sanctioned by the Superintendency of Electricity and Fuels with 5 fines amounting to (i) ThCh$ 778,320; (ii) ThCh$ 1,327; (iii) ThCh$ 1,769,720; (iv) ThCh$ 797,007; and (v) ThCh$ 1,600,893. All sanctions have been appeal to the authorities and the courts of justice. The Company and its Board of Directors have not received other fines from the SVS nor from other administrative authorities. 553 Consolidated Financial Statements39. Environment Environmental expenses for the years ended December 31, 2015, 2014 and 2013, are as follows: Company Incurring the Cost Project Status EMGESA El Quimbo hydro electrical plant project Environmental resource management HIDRA Preventing activities EDEGEL Environmental monitoring Waste management Environmental studies Mitigation and restoration CHINANGO Impact compensations Preventing activities Landscaping and gardens EDESUR CODENSA Environmental monitoring Waste management Environmental studies Contaminating material Transformers recovery PCBS dismantling Nueva Esperanza archaeological rescue Nueva esperanza environmental compensation Description Environmental management - El Quimbo plant construction Plants environmental resource management Biodiversity protection, sewage water treatment Air and climate protection, noise protection from radiation reduction, Hazardous waste management Enviromental studies Soil and water protection and recovery Compensations, increasing gardens Biodiversity protection, sewage water treatment Gardens, landscaping and fauna maintenance Air and climate protection, noise protection from radiation reduction, Hazardous waste management Enviromental studies Contaminating material management Project to invest in environment Dismantling transformers with PCb residues Environmental compensation for construction of Nueva Esperanza substation Rescue of archaeological B.C. remains of culture Herrera at substation Nueva Esperanza construction site. Finalized 189,528 12-31-2015 189,528 206,909 12-31-2015 ThCh$ 12-31-2014 ThCh$ 12-31-2014 (As adjusted) ThCh$ Costs incurred Project Status Costs incurred Capitalized Cost Expense amount In progress 135,659 135,659 Costs to be incurred in the future Estimate date of incurring cost Expenditures prior period Total - 135,659 - In progress 45,987,062 45,987,062 72,259,750 31/12/20 118,246,812 45,490,454 Finalized 100,570 Finalized 205,882 Finalized Finalized Finalized Finalized 21,373 2,549 144,590 71,560 Finalized Finalized In progress In progress In progress 34,960 19,703 44,281 30,005 489,659 30,005 489,659 - - - - - - - - - - - - - - 100,570 205,882 189,528 21,373 2,549 144,590 71,560 277,223 34,960 19,703 44,281 - - - - - - - - - - - - - - - - - - - - 12-31-2015 100,570 76,405 12-31-2015 205,882 156,570 12-31-2015 21,373 16,722 12-31-2015 2,549 12-31-2015 144,590 12-31-2015 71,560 8,045 6,823 5,974 12-31-2015 34,960 31,460 12-31-2015 19,703 5,229 - - - 44,281 18,018 30,005 489,659 811,655 - - Finalized 8,487 8,487 - 12-31-2015 8,487 5,935 Finalized 277,223 12-31-2015 277,223 239,904 Finalized 458,328 458,328 12-31-2015 458,328 1,933,259 In progress 432,514 432,514 - 432,514 Total 48,653,933 47,533,227 1,120,706 72,259,750 120,913,683 49,013,362 554 2015 Annual Report Enersis                               39. Environment Environmental expenses for the years ended December 31, 2015, 2014 and 2013, are as follows: EMGESA El Quimbo hydro electrical plant Environmental management - El Quimbo plant Company Incurring the Cost Project Status project HIDRA Environmental resource management EDEGEL Preventing activities Description construction Plants environmental resource management Environmental monitoring Air and climate protection, noise reduction, Biodiversity protection, sewage water treatment protection from radiation Waste management Environmental studies Mitigation and restoration Hazardous waste management Enviromental studies Impact compensations Compensations, increasing gardens Soil and water protection and recovery CHINANGO Preventing activities Landscaping and gardens Biodiversity protection, sewage water treatment Environmental monitoring Air and climate protection, noise reduction, Gardens, landscaping and fauna maintenance Waste management EDESUR Environmental studies Contaminating material protection from radiation Hazardous waste management Enviromental studies Transformers recovery Project to invest in environment Contaminating material management CODENSA PCBS dismantling Dismantling transformers with PCb residues Nueva Esperanza archaeological Environmental compensation for construction of rescue Nueva Esperanza substation Nueva esperanza environmental Rescue of archaeological B.C. remains of culture compensation Herrera at substation Nueva Esperanza construction site. 12-31-2015 ThCh$ Project Status Costs incurred Capitalized Cost Expense amount Costs to be incurred in the future Estimate date of incurring cost Total Expenditures 12-31-2014 ThCh$ 12-31-2014 (As adjusted) ThCh$ Costs incurred prior period In progress 135,659 135,659 In progress 45,987,062 45,987,062 Finalized 100,570 Finalized 205,882 Finalized 189,528 Finalized Finalized Finalized Finalized 21,373 2,549 144,590 71,560 Finalized 8,487 Finalized 277,223 34,960 19,703 44,281 Finalized Finalized In progress In progress In progress 30,005 489,659 30,005 489,659 Finalized 458,328 458,328 In progress 432,514 432,514 - - - - - - - - - - - - - - 100,570 205,882 189,528 21,373 2,549 144,590 71,560 - - 135,659 - 72,259,750 31/12/20 118,246,812 45,490,454 - - - - - - - 12-31-2015 100,570 76,405 12-31-2015 205,882 156,570 12-31-2015 189,528 206,909 12-31-2015 21,373 16,722 12-31-2015 2,549 12-31-2015 144,590 12-31-2015 71,560 8,045 6,823 5,974 8,487 - 12-31-2015 8,487 5,935 277,223 34,960 19,703 44,281 - - - - - - - - - - - - 12-31-2015 277,223 239,904 12-31-2015 34,960 31,460 12-31-2015 19,703 5,229 - - - 44,281 18,018 30,005 489,659 - 811,655 12-31-2015 458,328 1,933,259 - 432,514 - Total 48,653,933 47,533,227 1,120,706 72,259,750 120,913,683 49,013,362 555 Consolidated Financial Statements                              Company Incurring the Cost Project Status EMGESA El Quimbo hydro electrical plant project Description Environmental management - El Quimbo plant construction Environmental resource management HIDRA Plants environmental resource management EDEGEL Environmental monitoring Waste management Biodiversity protection, sewage water treatment Hazardous waste management Environmental studies Environmental studies Mitigation and restoration Soil and water protection and restoration Impact compensations Compensations, increasing gardens Landscaping and gardens Gardens, landscaping and fauna maintenance Preventing activities CHINANGO Preventing activities Biodiversity protection, sewage water treatment Biodiversity protection, sewage water treatment Landscaping and gardens Gardens, landscaping and fauna maintenance Environmental monitoring Air and climate protection, noise reduction, protection from radiation Waste management Environmental studies Hazardous waste management Enviromental studies Mitigation and restoration Soil and water protection and recovery Impact compensations Compensations, increasing gardens Contaminating material management Contaminating material management PCBS dismantling Dismantling transformers with PCb residues Nueva Esperanza archaeological rescue Rescue of archaeological B.C. remains of culture Herrera at substation Nueva Esperanza construction site. EDESUR CODENSA 12-31-2014 (As adjusted) ThCh$ 12-31-2013 (As adjusted) ThCh$ Project Status Costs incurred Capitalized Cost Expense amount Costs to be incurred in the future Estimate date of incurring Total incurred prior Costs period cost Expenditures In progress 38,445,602 38,445,602 7,044,852 12-31-2015 45,490,454 12,470,683 In progress 389,008 389,008 - 389,008 - Finalized 156,570 12-31-2014 156,570 74,967 - - 156,570 206,909 16,722 8,045 6,823 177,830 76,405 5,974 5,935 239,904 31,460 5,229 4,398 49,390 18,018 811,655 - - - - - - - - - - - - - - - - Finalized Finalized Finalized Finalized Finalized Finalized Finalized Finalized Finalized Finalized Finalized Finalized Finalized In progress In progress 206,909 16,722 8,045 6,823 177,830 76,405 5,974 5,935 239,904 31,460 5,229 4,398 49,390 18,018 811,655 12-31-2014 206,909 160,183 16,722 56,975 - - - - - - - - - - - - - - - - - - 12-31-2014 12-31-2014 12-31-2014 12-31-2014 12-31-2014 12-31-2014 12-31-2014 12-31-2014 12-31-2014 12-31-2014 - - - 12-31-2014 76,405 125,841 12-31-2014 239,904 54,855 8,045 6,823 177,830 5,974 5,935 31,460 5,229 4,398 49,390 18,018 91,879 117,212 41,691 - - - - - - - - 811,655 701,236 In progress 1,933,259 1,933,259 - 1,933,259 Total 42,589,136 40,767,869 1,821,267 7,044,852 49,633,988 13,895,522 556 2015 Annual Report Enersis                                   12-31-2014 (As adjusted) ThCh$ 12-31-2013 (As adjusted) ThCh$ Company Incurring the Cost Project Status EMGESA El Quimbo hydro electrical plant project Environmental management - El Quimbo plant Description construction Environmental resource management HIDRA Plants environmental resource management EDEGEL Environmental monitoring Waste management Hazardous waste management Environmental studies Environmental studies Mitigation and restoration Soil and water protection and restoration Impact compensations Compensations, increasing gardens Landscaping and gardens Gardens, landscaping and fauna maintenance Preventing activities CHINANGO Preventing activities Biodiversity protection, sewage water treatment Biodiversity protection, sewage water treatment Landscaping and gardens Gardens, landscaping and fauna maintenance Environmental monitoring Air and climate protection, noise reduction, Waste management Environmental studies protection from radiation Hazardous waste management Enviromental studies Mitigation and restoration Soil and water protection and recovery Impact compensations Compensations, increasing gardens Contaminating material management Contaminating material management PCBS dismantling Dismantling transformers with PCb residues Nueva Esperanza archaeological rescue Rescue of archaeological B.C. remains of EDESUR CODENSA Project Status Costs incurred Capitalized Cost Expense amount In progress 38,445,602 38,445,602 In progress 389,008 389,008 Biodiversity protection, sewage water treatment Finalized 156,570 Finalized Finalized Finalized Finalized Finalized Finalized Finalized Finalized Finalized Finalized Finalized Finalized Finalized In progress In progress 206,909 16,722 8,045 6,823 177,830 76,405 5,974 5,935 239,904 31,460 5,229 4,398 49,390 18,018 811,655 - - - - - - - - - - - - - - - - - - 156,570 206,909 16,722 8,045 6,823 177,830 76,405 5,974 5,935 239,904 31,460 5,229 4,398 49,390 18,018 811,655 culture Herrera at substation Nueva Esperanza In progress 1,933,259 1,933,259 - construction site. Costs to be incurred in the future Estimate date of incurring cost Total Expenditures Costs incurred prior period 7,044,852 12-31-2015 45,490,454 12,470,683 - - - - - - - - - - - - - - - - - - - 389,008 - 12-31-2014 156,570 74,967 12-31-2014 206,909 160,183 12-31-2014 12-31-2014 12-31-2014 12-31-2014 16,722 56,975 8,045 6,823 177,830 - - - 12-31-2014 76,405 125,841 12-31-2014 12-31-2014 5,974 5,935 91,879 - 12-31-2014 239,904 54,855 12-31-2014 12-31-2014 12-31-2014 12-31-2014 - - - 31,460 5,229 4,398 49,390 18,018 117,212 41,691 - - - 811,655 701,236 1,933,259 - Total 42,589,136 40,767,869 1,821,267 7,044,852 49,633,988 13,895,522 557 Consolidated Financial Statements                                  40. Financial Information on Subsidiaries, Summarized As of December 31, 2015 and 2014, summarized financial information of our principal subsidiaries prepared under IFRS is as follows: 12-31-2015 Continuing Operations: Inversiones Distrilima S.A. Empresa de Distribución Eléctrica de Lima Norte S.A.A. Endesa Argentina S.A. Central Costanera S.A. Hidroeléctrica El Chocón S.A. Emgesa S.A. E.S.P. Generandes Perú S.A. Edegel S.A.A. Chinango S.A.C. Enel Brasil S.A. Central Generadora Termoeléctrica Fortaleza S.A. Centrais Elétricas Cachoeira Dourada S.A. Compañía de Interconexión Energética S.A. Compañía de Transmisión del Mercosur S.A. Type of Financial Statements Current Assets ThCh$ Non-current assets ThCh$ Total AssetsThCh$ Current liabilities ThCh$ Non-current liabilities ThCh$ Equity ThCh$ Total Liabilities and Equity ThCh$ Raw materials and consumables used ThCh$ Revenue ThCh$ Contribution Margin ThCh$ Gross operating income ThCh$ Operating Financial Income before Income taxes income ThCh$ results ThCh$ taxes ThCh$ ThCh$ Gain (loss) ThCh$ comprehensive Comprehensive Other income ThCh$ Total Income ThCh$ Separate Separate Separate Separate Separate Separate Separate Separate Separate Separate Separate 18,246,316 50,156,404 68,402,720 325,792 - 68,076,928 68,402,720 (5,028) (5,028) 959,095 21,003,199 (266,930) 20,736,269 1,311,144 22,047,413 98,125,347 675,858,105 773,983,452 192,215,161 269,823,997 311,944,294 773,983,452 562,046,426 (379,015,102) 183,031,324 138,377,938 107,705,092 (16,772,560) 91,535,126 (27,924,718) 63,610,408 6,877,338 70,487,746 1,814,204 32,328,045 34,142,249 616,318 - 33,525,931 34,142,249 27,559,412 142,918,106 170,477,518 102,001,988 53,611,202 14,864,328 170,477,518 44,240,854 240,460,115 284,700,969 71,433,902 63,908,193 149,358,874 284,700,969 100,856,664 40,004,655 (4,598,130) (4,574,336) 96,258,534 35,430,318 (64,074) 1,023,419 959,344 (24,944,190) (4,012,455) (336,372) 3,013,645 622,972 (998,809) (10,352,540) (4,729,767) 141,308,348 169,850,815 (59,047,935) 110,802,880 (44,667,506) 172,918,511 1,803,546,987 1,976,465,498 349,736,334 831,187,906 795,541,258 1,976,465,498 778,768,426 (321,664,855) 457,103,571 412,046,148 372,828,429 (39,872,136) 332,845,961 (120,949,697) 211,896,264 (91,252,276) 120,643,988 1,945,582 225,170,087 227,115,669 1,364,513 - 225,751,156 227,115,669 111,421,412 723,995,979 835,417,391 117,775,269 188,814,672 528,827,450 835,417,391 343,761,564 (143,234,611) 200,526,954 164,344,988 7,647,526 112,688,111 120,335,637 8,369,365 40,621,719 71,344,553 120,335,637 39,114,967 (8,235,270) 30,879,697 26,280,972 110,127,302 736,398,772 846,526,074 51,310,987 15,859,063 779,356,024 846,526,074 172,406 42,094,142 (50,002) (9,260,148) (1,057,861) 26,840,323 122,550,483 (31,389,446) 22,037,351 122,982,000 (6,827,262) (8,959,080) 42,044,140 91,161,037 15,210,089 4,890,902 4,059,334 (708,295) 114,022,920 (194,845,796) (80,822,876) (64,074) 41,604,328 28,820,101 (32,396) (21,299,668) 20,372,179 27,009,175 (32,396) 116,593,374 23,095,212 (21,417,232) (9,729,568) (5,728,576) 66,135,374 46,935,042 95,220,371 14,501,794 36,820,903 114,401,115 151,222,018 35,746,585 638,562 114,836,871 151,222,018 159,051,928 (111,228,593) 47,823,335 40,544,633 34,866,986 3,245,644 38,112,630 (13,299,903) 24,812,727 (26,130,490) (1,317,763) Separate 43,483,356 77,906,552 121,389,908 33,306,336 3,370,881 84,712,691 121,389,908 91,563,206 (17,395,858) 74,167,348 66,975,312 61,972,753 3,514,857 65,487,610 (22,519,731) 42,967,879 (13,348,590) 29,619,289 Separate 29,310,056 185,030,817 214,340,873 57,239,098 30,170,820 126,930,955 214,340,873 55,533,872 (3,125,790) 52,408,082 45,152,292 34,319,511 15,559,865 49,879,376 (17,387,165) 32,492,212 (27,600,284) 4,891,928 Separate 13,944,906 934,689 14,879,595 10,880,864 17,896,009 (13,897,278) 14,879,595 1,644,146 1,644,146 922,095 770,315 (17,579,292) (16,801,955) (998,283) (17,800,238) 4,199,017 (13,601,221) Compañía Energética Do Ceará S.A. Separate 267,538,669 569,364,164 836,902,833 219,528,371 223,842,286 393,532,176 836,902,833 810,184,252 (581,689,470) 228,494,783 136,443,771 100,911,453 (12,650,857) 85,012,938 (12,997,078) EN-Brasil Comercio e Servicios S.A. Separate 2,673,792 1,448,487 4,122,279 3,234,058 - 888,221 4,122,279 5,603,633 (3,041,559) 2,562,075 (614,126) (782,696) 136,846 (645,850) 72,015,860 (1,381,657) (97,029,555) (25,013,695) (163,062) (1,544,719) Ampla Energía E Servicios S.A. Separate 385,803,702 1,016,536,280 1,402,339,982 333,276,269 608,907,379 460,156,334 1,402,339,982 1,026,680,070 (804,701,402) 221,978,668 93,688,470 26,422,575 (35,938,130) (13,026,593) (10,878,978) (139,016,506) (149,895,484) Compañía Distribuidora y Comercializadora de Energía S.A. Inversora Codensa S.A. Empresa Distribuidora Sur S.A. Generalima. S.A.C. Endesa Cemsa. S.A. Grupo Dock Sud. S.A. Eléctrica Cabo Blanco. S.A.C. Grupo Distrilima Grupo Enel Brasil Grupo Generandes Perú Grupo Endesa Argentina Operaciones Discontinuadas: Separate Separate Separate Separate Separate Consolidated Consolidated Consolidated Consolidated Consolidated Consolidated 207,553,184 841,585,897 1,049,139,081 247,749,853 281,940,697 519,448,531 1,049,139,081 884,467,266 (500,570,712) 383,896,554 295,143,439 235,587,544 (27,459,741) 207,999,316 (84,883,205) 123,116,111 (61,679,252) 61,436,859 491 63 554 3 - 551 554 191,441,460 443,412,232 634,853,692 431,630,045 174,966,573 28,257,074 634,853,692 607,344,916 (157,387,237) 449,957,679 119,294,227 103,775,386 5,697,317 50,472,490 22,954,619 91,195 56,169,807 23,045,814 46,722,732 126,188,103 172,910,835 54,357,844 81,815,037 136,172,881 20,328,170 21,098,368 25,736,485 19,831,659 8,150,819 - 67,304,445 47,845,465 27,690,818 1,947,446 56,169,807 23,045,814 79,869,905 172,910,835 68,495,757 136,172,881 2,269,586 69,962,810 58,092,640 (1,017,940) (43,265,695) (26,124,119) 1,251,646 26,697,115 31,968,521 (189) (189) (375,459) (1,206,493) 14,806,741 23,168,206 (376,682) (1,255,814) 3,309,477 17,663,200 - (3,942,519) (2,233,357) 897,816 53,770,197 (5,755,667) (189) 99,980,518 (412,473) (357,998) 57,229,446 12,013,784 116,371,663 675,858,105 792,229,768 192,540,953 269,823,997 329,864,818 792,229,768 562,046,426 (379,015,102) 183,031,324 138,372,910 107,700,064 (15,813,466) 92,489,193 (28,191,648) 796,102,019 1,994,170,372 2,790,272,391 653,756,270 725,006,817 1,411,509,304 2,790,272,391 2,016,488,833 (1,385,921,254) 630,567,580 363,360,618 238,408,123 (36,592,248) 195,064,201 (76,715,148) 118,349,053 (370,529,946) (252,180,893) 120,047,319 808,405,916 928,453,235 126,541,945 229,436,392 572,474,898 928,453,235 382,452,709 (151,046,058) 231,406,651 190,593,564 139,656,190 (10,145,603) 133,321,519 (38,266,710) 95,054,809 (9,131,696) 73,348,681 385,562,798 458,911,479 173,663,474 115,955,351 169,292,654 458,911,479 140,398,933 (9,172,466) 131,226,467 70,334,513 47,291,438 117,190,764 165,754,140 (56,407,124) 109,347,016 (50,970,094) (735,808) 2,147,615 (8) (463,471) (285,187) (1,466,245) (18,102,752) (4,166,389) (91) (289) (8,266,492) 91,250,555 (198) 99,517,047 (697,659) (1,824,243) 39,126,694 7,847,394 64,297,545 727,779 (626,380) (24,156,874) 720,031 7,349,620 30,120 (2,450,623) 14,969,820 8,567,425 71,647,165 85,923,113 58,376,922 Chilectra S.A. Consolidated 764,264,413 766,740,395 1,531,004,808 363,516,173 54,831,044 1,112,657,591 1,531,004,808 1,257,732,164 (983,732,902) 273,999,262 185,114,892 149,293,693 12,669,568 176,628,861 (36,956,051) 188,750,734 (111,222,756) 77,527,978 Grupo Servicios Informaticos e Inmobiliarios Ltda, Empresa Nacional de Electricidad S.A. Empresa Eléctrica Pehuenche S.A. Compañía Eléctrica Tarapacá S.A. Consolidated 54,816,036 11,561,339 66,377,375 5,586,878 1,305,133 59,485,364 66,377,375 8,660,778 - 8,660,778 (397,888) (511,775) 2,260,216 6,041,979 (765,180) 5,276,799 (76,578) 5,200,221 Separate Separate Separate 563,422,232 3,601,559,005 4,164,981,237 807,918,132 1,027,287,096 2,329,776,009 4,164,981,237 1,407,824,978 (1,061,507,980) 346,316,998 225,230,207 143,639,730 (126,334,330) 246,255,963 (32,834,204) 213,421,760 (92,076,119) 121,345,641 63,745,589 201,366,300 265,111,889 64,820,897 51,972,920 148,318,072 265,111,889 193,189,705 (28,569,912) 164,619,793 159,244,283 150,615,199 2,049,116 152,664,315 (34,647,895) 82,875,363 509,275,829 592,151,192 115,138,485 44,379,433 432,633,274 592,151,192 230,852,534 (139,555,849) 91,296,685 73,665,446 64,306,244 24,323,943 88,341,669 (18,079,279) 118,016,421 70,262,390 33,526 (624) 118,049,947 70,261,766 Grupo Endesa Chile Consolidated 4,412,561,440 2,866,208,895 7,278,770,335 2,527,875,495 1,207,004,760 3,543,890,080 7,278,770,335 1,543,810,316 (880,891,223) 662,919,093 516,860,724 401,818,817 (114,252,182) 300,487,081 (76,655,819) 635,020,813 (347,578,686) 287,442,127 Grupo Inversiones GasAtacama Holding Ltda, Consolidated 245,456,212 207,236,190 452,692,402 24,048,629 49,959,438 378,684,335 452,692,402 183,015,183 (110,330,364) 72,684,819 57,943,644 46,360,426 10,304,578 56,660,371 (10,444,811) 46,215,560 (3,059,806) 43,155,754 - - - - - - - - - - - - - - - - - - - 558 2015 Annual Report Enersis                                     20,372,179 27,009,175 (24,944,190) (4,012,455) (64,074) 1,023,419 959,344 141,308,348 169,850,815 (59,047,935) 110,802,880 (44,667,506) (336,372) 3,013,645 622,972 (998,809) (10,352,540) (4,729,767) Hidroeléctrica El Chocón S.A. 44,240,854 240,460,115 284,700,969 71,433,902 63,908,193 149,358,874 284,700,969 1,814,204 32,328,045 34,142,249 616,318 33,525,931 34,142,249 27,559,412 142,918,106 170,477,518 102,001,988 53,611,202 14,864,328 170,477,518 - 100,856,664 40,004,655 - (4,598,130) (4,574,336) - 96,258,534 35,430,318 (64,074) 41,604,328 28,820,101 40. Financial Information on Subsidiaries, Summarized As of December 31, 2015 and 2014, summarized financial information of our principal subsidiaries prepared Type of Financial Statements Current Assets ThCh$ Non-current assets ThCh$ Total AssetsThCh$ Current liabilities ThCh$ Non-current liabilities ThCh$ Total Equity ThCh$ Liabilities and Equity ThCh$ Raw materials and consumables used ThCh$ Revenue ThCh$ Contribution Margin ThCh$ Gross operating income ThCh$ Operating income ThCh$ Financial results ThCh$ Income before taxes ThCh$ Income taxes ThCh$ Gain (loss) ThCh$ Other comprehensive income ThCh$ Total Comprehensive Income ThCh$ 18,246,316 50,156,404 68,402,720 325,792 68,076,928 68,402,720 - - - (5,028) (5,028) 959,095 21,003,199 (266,930) 20,736,269 1,311,144 22,047,413 98,125,347 675,858,105 773,983,452 192,215,161 269,823,997 311,944,294 773,983,452 562,046,426 (379,015,102) 183,031,324 138,377,938 107,705,092 (16,772,560) 91,535,126 (27,924,718) 63,610,408 6,877,338 70,487,746 under IFRS is as follows: 12-31-2015 Separate Separate Separate Separate Separate Separate Separate Separate Separate Separate Separate Continuing Operations: Inversiones Distrilima S.A. Empresa de Distribución Eléctrica de Lima Norte S.A.A. Endesa Argentina S.A. Central Costanera S.A. Emgesa S.A. E.S.P. Generandes Perú S.A. Edegel S.A.A. Chinango S.A.C. Enel Brasil S.A. Central Generadora Termoeléctrica Fortaleza S.A. Centrais Elétricas Cachoeira Dourada S.A. Compañía de Interconexión Energética S.A. Compañía de Transmisión del Mercosur S.A. Compañía Distribuidora y Comercializadora de Energía S.A. Inversora Codensa S.A. Empresa Distribuidora Sur S.A. Generalima. S.A.C. Endesa Cemsa. S.A. Grupo Dock Sud. S.A. Eléctrica Cabo Blanco. S.A.C. Grupo Distrilima Grupo Enel Brasil Grupo Generandes Perú Grupo Endesa Argentina Operaciones Discontinuadas: Separate Separate Separate Separate Separate Consolidated Consolidated Consolidated Consolidated Consolidated Consolidated Grupo Servicios Informaticos e Inmobiliarios Ltda, Empresa Nacional de Electricidad S.A. Empresa Eléctrica Pehuenche S.A. Compañía Eléctrica Tarapacá S.A. Separate Separate Separate Grupo Inversiones GasAtacama Holding Ltda, - - - - - - 172,918,511 1,803,546,987 1,976,465,498 349,736,334 831,187,906 795,541,258 1,976,465,498 778,768,426 (321,664,855) 457,103,571 412,046,148 372,828,429 (39,872,136) 332,845,961 (120,949,697) 211,896,264 (91,252,276) 120,643,988 1,945,582 225,170,087 227,115,669 1,364,513 225,751,156 227,115,669 - - - (32,396) 111,421,412 723,995,979 835,417,391 117,775,269 188,814,672 528,827,450 835,417,391 343,761,564 (143,234,611) 200,526,954 164,344,988 7,647,526 112,688,111 120,335,637 8,369,365 40,621,719 71,344,553 120,335,637 39,114,967 (8,235,270) 30,879,697 26,280,972 110,127,302 736,398,772 846,526,074 51,310,987 15,859,063 779,356,024 846,526,074 - - - (21,299,668) (32,396) 116,593,374 23,095,212 (21,417,232) 172,406 42,094,142 (50,002) (9,260,148) (1,057,861) 26,840,323 122,550,483 (31,389,446) 22,037,351 122,982,000 (6,827,262) (8,959,080) 42,044,140 91,161,037 15,210,089 4,890,902 4,059,334 (708,295) 46,935,042 95,220,371 14,501,794 114,022,920 (194,845,796) (80,822,876) 36,820,903 114,401,115 151,222,018 35,746,585 638,562 114,836,871 151,222,018 159,051,928 (111,228,593) 47,823,335 40,544,633 34,866,986 3,245,644 38,112,630 (13,299,903) 24,812,727 (26,130,490) (1,317,763) Separate 43,483,356 77,906,552 121,389,908 33,306,336 3,370,881 84,712,691 121,389,908 91,563,206 (17,395,858) 74,167,348 66,975,312 61,972,753 3,514,857 65,487,610 (22,519,731) 42,967,879 (13,348,590) 29,619,289 Separate 29,310,056 185,030,817 214,340,873 57,239,098 30,170,820 126,930,955 214,340,873 55,533,872 (3,125,790) 52,408,082 45,152,292 34,319,511 15,559,865 49,879,376 (17,387,165) 32,492,212 (27,600,284) 4,891,928 Separate 13,944,906 934,689 14,879,595 10,880,864 17,896,009 (13,897,278) 14,879,595 1,644,146 - 1,644,146 922,095 770,315 (17,579,292) (16,801,955) (998,283) (17,800,238) 4,199,017 (13,601,221) Compañía Energética Do Ceará S.A. Separate 267,538,669 569,364,164 836,902,833 219,528,371 223,842,286 393,532,176 836,902,833 810,184,252 (581,689,470) 228,494,783 136,443,771 100,911,453 (12,650,857) 85,012,938 (12,997,078) EN-Brasil Comercio e Servicios S.A. Separate 2,673,792 1,448,487 4,122,279 3,234,058 888,221 4,122,279 5,603,633 (3,041,559) 2,562,075 (614,126) (782,696) 136,846 (645,850) Ampla Energía E Servicios S.A. Separate 385,803,702 1,016,536,280 1,402,339,982 333,276,269 608,907,379 460,156,334 1,402,339,982 1,026,680,070 (804,701,402) 221,978,668 93,688,470 26,422,575 (35,938,130) (13,026,593) (735,808) 2,147,615 72,015,860 (1,381,657) (97,029,555) (25,013,695) (163,062) (1,544,719) (10,878,978) (139,016,506) (149,895,484) 207,553,184 841,585,897 1,049,139,081 247,749,853 281,940,697 519,448,531 1,049,139,081 884,467,266 (500,570,712) 383,896,554 295,143,439 235,587,544 (27,459,741) 207,999,316 (84,883,205) 123,116,111 (61,679,252) 61,436,859 491 63 554 3 551 554 - - - (189) (189) 191,441,460 443,412,232 634,853,692 431,630,045 174,966,573 28,257,074 634,853,692 607,344,916 (157,387,237) 449,957,679 119,294,227 103,775,386 5,697,317 50,472,490 22,954,619 91,195 56,169,807 23,045,814 46,722,732 126,188,103 172,910,835 54,357,844 81,815,037 136,172,881 20,328,170 21,098,368 25,736,485 19,831,659 8,150,819 27,690,818 1,947,446 56,169,807 23,045,814 67,304,445 47,845,465 79,869,905 172,910,835 68,495,757 136,172,881 - 2,269,586 69,962,810 58,092,640 - (1,017,940) (43,265,695) (26,124,119) - 1,251,646 26,697,115 31,968,521 (375,459) (1,206,493) 14,806,741 23,168,206 (376,682) (1,255,814) 3,309,477 17,663,200 - (3,942,519) (2,233,357) 897,816 53,770,197 (5,755,667) (189) 99,980,518 (412,473) (357,998) 57,229,446 12,013,784 (8) (463,471) (285,187) (1,466,245) (18,102,752) (4,166,389) 116,371,663 675,858,105 792,229,768 192,540,953 269,823,997 329,864,818 792,229,768 562,046,426 (379,015,102) 183,031,324 138,372,910 107,700,064 (15,813,466) 92,489,193 (28,191,648) (198) 99,517,047 (697,659) (1,824,243) 39,126,694 7,847,394 64,297,545 (91) (289) (8,266,492) 91,250,555 727,779 (626,380) (24,156,874) 720,031 7,349,620 30,120 (2,450,623) 14,969,820 8,567,425 71,647,165 796,102,019 1,994,170,372 2,790,272,391 653,756,270 725,006,817 1,411,509,304 2,790,272,391 2,016,488,833 (1,385,921,254) 630,567,580 363,360,618 238,408,123 (36,592,248) 195,064,201 (76,715,148) 118,349,053 (370,529,946) (252,180,893) 120,047,319 808,405,916 928,453,235 126,541,945 229,436,392 572,474,898 928,453,235 382,452,709 (151,046,058) 231,406,651 190,593,564 139,656,190 (10,145,603) 133,321,519 (38,266,710) 95,054,809 (9,131,696) 73,348,681 385,562,798 458,911,479 173,663,474 115,955,351 169,292,654 458,911,479 140,398,933 (9,172,466) 131,226,467 70,334,513 47,291,438 117,190,764 165,754,140 (56,407,124) 109,347,016 (50,970,094) 85,923,113 58,376,922 Chilectra S.A. Consolidated 764,264,413 766,740,395 1,531,004,808 363,516,173 54,831,044 1,112,657,591 1,531,004,808 1,257,732,164 (983,732,902) 273,999,262 185,114,892 149,293,693 12,669,568 176,628,861 (36,956,051) 188,750,734 (111,222,756) 77,527,978 Consolidated 54,816,036 11,561,339 66,377,375 5,586,878 1,305,133 59,485,364 66,377,375 8,660,778 - 8,660,778 (397,888) (511,775) 2,260,216 6,041,979 (765,180) 5,276,799 (76,578) 5,200,221 563,422,232 3,601,559,005 4,164,981,237 807,918,132 1,027,287,096 2,329,776,009 4,164,981,237 1,407,824,978 (1,061,507,980) 346,316,998 225,230,207 143,639,730 (126,334,330) 246,255,963 (32,834,204) 213,421,760 (92,076,119) 121,345,641 63,745,589 201,366,300 265,111,889 64,820,897 51,972,920 148,318,072 265,111,889 193,189,705 (28,569,912) 164,619,793 159,244,283 150,615,199 2,049,116 152,664,315 (34,647,895) 82,875,363 509,275,829 592,151,192 115,138,485 44,379,433 432,633,274 592,151,192 230,852,534 (139,555,849) 91,296,685 73,665,446 64,306,244 24,323,943 88,341,669 (18,079,279) 118,016,421 70,262,390 33,526 (624) 118,049,947 70,261,766 Grupo Endesa Chile Consolidated 4,412,561,440 2,866,208,895 7,278,770,335 2,527,875,495 1,207,004,760 3,543,890,080 7,278,770,335 1,543,810,316 (880,891,223) 662,919,093 516,860,724 401,818,817 (114,252,182) 300,487,081 (76,655,819) 635,020,813 (347,578,686) 287,442,127 Consolidated 245,456,212 207,236,190 452,692,402 24,048,629 49,959,438 378,684,335 452,692,402 183,015,183 (110,330,364) 72,684,819 57,943,644 46,360,426 10,304,578 56,660,371 (10,444,811) 46,215,560 (3,059,806) 43,155,754 559 (9,729,568) (5,728,576) 66,135,374 Consolidated Financial Statements                                    - - - - - - - - - - - - - - - - - - - - (49) (37,897,127) (1,029,910) (803,614) 15,187,192 23,494,631 (1,031,105) (1,029,672) (834,067) 9,464,772 17,583,296 90,973,374 456,221 (27,337,694) (5,339,890) (10,281,167) (1,157,449) (377,846) (17,833,553) 12,252,291 80,724,117 (1,157,449) (341,232) (24,126,488) 9,086,201 60,572,081 2,137,860 (594,259) 6,343,207 4,030,841 14,254,102 980,411 (935,491) (17,783,281) 13,117,042 74,826,183 8,091,449 (754,491) (8) - 36,614 (6,292,935) (3,166,090) (20,152,036) 12-31-2014 Type of Financial Statements Current Assets ThCh$ Non-current assets ThCh$ Total AssetsThCh$ Current liabilities ThCh$ Non-current liabilities ThCh$ Equity ThCh$ Total Liabilities and Equity ThCh$ Raw materials and consumables used ThCh$ Revenue ThCh$ Contribution Margin ThCh$ Gross operating income ThCh$ Operating Financial Income before Income taxes income ThCh$ results ThCh$ taxes ThCh$ ThCh$ Gain (loss) ThCh$ comprehensive Comprehensive Other income ThCh$ Total Income ThCh$ Continuing Operations: Inversiones Distrilima S.A. Empresa de Distribución Eléctrica de Lima Norte S.A.A. Endesa Argentina S.A. Central Costanera S.A. Hidroeléctrica El Chocón S.A. Emgesa S.A. E.S.P. Generandes Perú S.A. Edegel S.A.A. Chinango S.A.C. Enel Brasil S.A. Central Generadora Termoeléctrica Fortaleza S.A. Separate Separate Separate Separate Separate Separate Separate Separate Separate Separate Separate 15,272,519 48,854,638 64,127,157 76,273 - 64,050,884 64,127,157 (12,705) (12,705) 1,212,945 18,308,552 (361,797) 17,946,755 2,959,092 20,905,847 127,665,327 587,886,652 715,551,979 164,991,090 271,208,225 279,352,664 715,551,979 478,699,891 (315,115,521) 163,584,370 119,243,469 90,986,079 (11,494,112) 79,523,877 (19,790,239) 59,733,639 13,438,385 73,172,024 1,924,047 42,081,267 44,005,314 749,815 - 43,255,499 44,005,314 31,868,372 154,649,134 186,517,506 108,956,607 22,930,536 137,891,546 160,822,082 31,540,350 56,967,994 46,058,232 20,592,905 186,517,506 83,223,500 160,822,082 75,193,639 30,173,576 (6,777,139) (8,427,057) 68,416,500 21,746,518 (57,903) 29,619,143 16,090,917 (57,903) 13,701,504 14,338,493 588,091 46,699,311 2,101,221 530,188 60,497,602 16,965,869 (189,589) (14,964,948) (5,929,047) 340,599 45,532,654 11,036,822 329,672,209 1,782,307,979 2,111,980,188 500,414,812 883,041,284 728,524,092 2,111,980,188 753,385,348 (220,460,069) 532,925,279 494,084,840 449,490,365 (34,591,411) 414,973,137 (126,151,739) 288,821,398 (73,145,883) 215,675,515 3,473,185 219,325,990 222,799,175 3,148,425 - 219,650,750 222,799,175 (116,329) (116,329) 2,240 46,503,610 - 46,503,610 110,164,628 720,449,664 830,614,292 85,724,692 235,667,176 509,222,424 830,614,292 319,346,826 (127,881,082) 191,465,744 161,105,457 121,654,584 (6,281,794) 131,544,215 (25,404,816) 106,139,399 8,439,096 111,912,667 120,351,763 198,803,856 728,752,116 927,555,972 7,433,439 6,224,235 39,382,244 73,536,080 120,351,763 18,531,060 902,800,677 927,555,972 34,656,130 (6,061,046) 28,595,084 23,773,307 19,619,464 (987,683) 18,631,781 (3,620,360) 15,011,421 (10,160,775) (10,314,474) 27,502,175 188,852,384 (24,686,207) 164,166,176 (5,299,756) 3,989,198 (8,763,212) 12,303,680 23,688,400 3,041,428 17,806,175 (4,959,157) 49,521,852 2,273,610 58,807,290 129,827,799 18,052,849 181,972,351 87,327,393 134,284,880 221,612,273 63,772,100 746,476 157,093,697 221,612,273 210,793,165 (158,318,428) 52,474,737 43,685,496 36,994,098 (427,163) 36,566,936 (12,676,193) 23,890,743 3,336,545 27,227,288 Centrais Elétricas Cachoeira Dourada S.A. Separate 47,664,376 100,003,024 147,667,400 37,718,853 1,171,987 108,776,560 147,667,400 158,965,069 (72,988,916) 85,976,152 78,633,209 71,852,510 6,953,799 78,806,309 (7,617,686) 71,188,623 (212,540) 70,976,083 Compañía de Interconexión Energética S.A. Compañía de Transmisión del Mercosur S.A. Separate 44,361,955 230,817,235 275,179,190 107,201,716 6,527,878 161,449,596 275,179,190 67,700,328 (3,343,111) 64,357,217 54,518,387 40,083,633 13,131,369 53,215,002 (19,092,627) 34,122,374 2,426,463 36,548,837 Separate 15,584,323 2,421,427 18,005,750 10,519,818 18,458,001 (10,972,069) 18,005,750 1,622,003 1,622,003 1,169,376 1,017,867 (10,464,633) (9,446,765) (718,950) (10,165,715) 238,183 (9,927,532) Compañía Energética Do Ceará S.A. Separate 268,129,640 669,313,258 937,442,898 167,577,487 341,179,908 428,685,503 937,442,898 876,944,301 (606,422,198) 270,522,103 171,230,201 117,379,884 (68,220,958) 49,158,926 57,250,375 6,084,384 63,334,759 EN-Brasil Comercio e Servicios S.A. Separate 6,136,466 1,893,079 8,029,545 5,162,409 2,266,733 600,403 8,029,545 5,537,295 (2,649,496) 2,887,799 611,350 508,118 262,046 770,164 15,673 56,856 72,529 Ampla Energía E Servicios S.A. Separate 320,891,004 1,104,657,097 1,425,548,101 215,091,583 589,157,241 621,299,277 1,425,548,101 1,092,281,884 (707,301,383) 384,980,502 257,576,731 183,845,670 (106,657,268) 77,188,402 (26,650,546) 50,537,856 6,281,883 56,819,739 Compañía Distribuidora y Comercializadora de Energía S.A. Inversora Codensa S.A. Empresa Distribuidora Sur S.A. Generalima. S.A.C. Endesa Cemsa. S.A. Inversora Dock Sud. S.A. Eléctrica Cabo Blanco. S.A.C. Grupo Distrilima Grupo Enel Brasil Separate Separate Separate Separate Separate Separate Consolidated Consolidated 254,295,501 922,713,629 1,177,009,130 337,839,513 358,873,769 480,295,848 1,177,009,130 982,770,698 (547,593,754) 435,176,944 336,375,500 261,975,074 (26,624,088) 235,397,500 (82,240,147) 153,157,353 (49,593,528) 103,563,825 853 72 925 86 - 839 925 (49) - (49) (57) (54) (111) 409,109,176 405,106,897 814,216,073 739,412,769 137,796,785 (62,993,481) 814,216,073 371,411,786 (161,995,239) 209,416,546 (51,229,198) (38,408,033) (89,602,510) 3,792,056 (85,810,453) (5,608,787) (91,419,240) 5,388,518 47,434,910 28,225,495 27,292,922 43,338,830 873,712 72,509,102 52,823,428 29,099,207 99,802,024 80,059,964 123,398,794 18,110,685 24,701,137 19,318,481 13,222,522 7,052,044 - 15,583,458 47,895,051 27,660,699 4,398,070 64,900,085 52,823,428 29,099,207 99,802,024 62,281,221 123,398,794 1,280,939 61,606,091 50,848,925 (203,349) (34,976,794) (20,916,046) 1,077,590 26,629,297 29,932,879 142,931,833 587,886,652 730,818,485 165,061,351 271,208,225 294,548,909 730,818,485 478,694,847 (315,115,521) 163,579,326 119,230,764 Consolidated 854,733,662 2,303,015,000 3,157,748,662 481,334,130 959,822,163 1,716,592,369 3,157,748,662 2,269,559,959 (1,405,383,543) 864,176,416 598,417,264 442,290,345 (145,647,045) 296,643,299 (85,139,697) 211,503,603 23,085,739 234,589,342 Grupo Generandes Perú Consolidated 121,446,538 816,077,565 937,524,103 95,676,185 275,049,420 566,798,498 937,524,103 353,794,700 (133,734,610) 220,060,090 184,762,435 141,157,719 (7,267,237) 140,375,290 (29,025,176) 111,350,114 23,873,097 135,223,211 Grupo Endesa Argentina Consolidated 56,074,841 297,050,238 353,125,079 140,459,888 101,749,459 110,915,732 353,125,079 105,265,323 (15,204,196) 90,061,127 45,630,444 27,960,381 49,186,700 77,616,469 (21,104,876) 56,511,593 (5,660,609) 50,850,984 Discontinued Operations: Consolidated Chilectra S.A. Consolidated 300,765,618 1,240,468,967 1,541,234,585 244,981,389 72,612,724 1,223,640,472 1,541,234,585 1,127,892,544 (855,757,751) 272,134,792 181,011,575 152,857,560 5,623,543 186,967,506 (36,244,349) 150,723,157 (3,602,592) 147,120,565 Inmobiliaria Manso de Velasco Ltda, Separate ICT Servicios Informáticos Ltda, Separate 47,631,734 2,214,084 12,103,210 59,734,944 555,542 2,769,626 3,605,662 3,005,476 526,608 1,069,158 55,602,674 (1,305,008) 59,734,944 2,769,626 12,596,339 4,978,226 (2,146,800) 10,449,539 4,978,226 5,567,964 (1,498,309) 5,359,685 (1,541,569) 587,792 68,519 27,044,615 (1,473,050) (3,029,840) 105,583 24,014,775 (1,367,466) Empresa Nacional de Electricidad S.A. Separate 560,876,230 3,507,579,867 4,068,456,097 773,846,300 917,950,372 2,376,659,425 4,068,456,097 1,180,478,031 (1,062,428,719) 118,049,313 17,064,677 (135,048,532) (83,048,732) 164,538,279 5,198,626 169,736,906 (101,261,071) Empresa Eléctrica Pehuenche S.A. Compañía Eléctrica Tarapacá S.A. Separate 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 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) Soc, Concesionaria Túnel El Melón S.A. Consolidated 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) (39,600) (162,551) (51,043) (604) (12,156) 23,975,175 (1,530,017) 68,475,835 143,111,237 89,899,762 5,818,563 89,900,366 5,830,719 Grupo Endesa Chile Consolidated 1,038,057,559 6,199,614,342 7,237,671,901 1,392,737,593 2,321,047,965 3,523,886,343 7,237,671,901 2,446,534,314 (1,119,458,198) 1,327,076,115 1,094,981,140 875,320,583 (68,781,874) 857,125,255 (238,152,509) 618,972,747 (103,941,898) 515,030,849 Grupo Inversiones GasAtacama Holding Ltda, Consolidado 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 80,653,225 560 2015 Annual Report Enersis                                                                                                             12-31-2014 Separate Separate Separate Separate Separate Separate Separate Separate Separate Separate Separate Continuing Operations: Inversiones Distrilima S.A. Empresa de Distribución Eléctrica de Lima Norte S.A.A. Endesa Argentina S.A. Central Costanera S.A. Emgesa S.A. E.S.P. Generandes Perú S.A. Edegel S.A.A. Chinango S.A.C. Enel Brasil S.A. Central Generadora Termoeléctrica Fortaleza S.A. Compañía de Interconexión Energética S.A. Compañía de Transmisión del Mercosur S.A. Compañía Distribuidora y Comercializadora de Energía S.A. Inversora Codensa S.A. Empresa Distribuidora Sur S.A. Generalima. S.A.C. Endesa Cemsa. S.A. Inversora Dock Sud. S.A. Eléctrica Cabo Blanco. S.A.C. Grupo Distrilima Grupo Enel Brasil Separate Separate Separate Separate Separate Separate Consolidated Consolidated Discontinued Operations: Consolidated Empresa Eléctrica Pehuenche S.A. Compañía Eléctrica Tarapacá S.A. Separate Separate Grupo Inversiones GasAtacama Holding Ltda, Type of Financial Statements Current Assets ThCh$ Non-current assets ThCh$ Total AssetsThCh$ Current liabilities ThCh$ Non-current liabilities ThCh$ Total Equity ThCh$ Liabilities and Equity ThCh$ Raw materials and consumables used ThCh$ Revenue ThCh$ Contribution Margin ThCh$ Gross operating income ThCh$ Operating income ThCh$ Financial results ThCh$ Income before taxes ThCh$ Income taxes ThCh$ Gain (loss) ThCh$ Other comprehensive income ThCh$ Total Comprehensive Income ThCh$ 15,272,519 48,854,638 64,127,157 76,273 64,050,884 64,127,157 - - - (12,705) (12,705) 1,212,945 18,308,552 (361,797) 17,946,755 2,959,092 20,905,847 127,665,327 587,886,652 715,551,979 164,991,090 271,208,225 279,352,664 715,551,979 478,699,891 (315,115,521) 163,584,370 119,243,469 90,986,079 (11,494,112) 79,523,877 (19,790,239) 59,733,639 13,438,385 73,172,024 Hidroeléctrica El Chocón S.A. 22,930,536 137,891,546 160,822,082 31,540,350 1,924,047 42,081,267 44,005,314 749,815 31,868,372 154,649,134 186,517,506 108,956,607 56,967,994 46,058,232 43,255,499 44,005,314 20,592,905 186,517,506 83,223,500 160,822,082 - 75,193,639 30,173,576 - (6,777,139) (8,427,057) - 68,416,500 21,746,518 (57,903) 29,619,143 16,090,917 (57,903) 13,701,504 14,338,493 588,091 46,699,311 2,101,221 530,188 60,497,602 16,965,869 (189,589) (14,964,948) (5,929,047) 340,599 45,532,654 11,036,822 (5,299,756) 3,989,198 (8,763,212) (4,959,157) 49,521,852 2,273,610 329,672,209 1,782,307,979 2,111,980,188 500,414,812 883,041,284 728,524,092 2,111,980,188 753,385,348 (220,460,069) 532,925,279 494,084,840 449,490,365 (34,591,411) 414,973,137 (126,151,739) 288,821,398 (73,145,883) 215,675,515 3,473,185 219,325,990 222,799,175 3,148,425 219,650,750 222,799,175 - - - (116,329) (116,329) 2,240 46,503,610 - 46,503,610 110,164,628 720,449,664 830,614,292 85,724,692 235,667,176 509,222,424 830,614,292 319,346,826 (127,881,082) 191,465,744 161,105,457 121,654,584 (6,281,794) 131,544,215 (25,404,816) 106,139,399 8,439,096 111,912,667 120,351,763 39,382,244 73,536,080 120,351,763 34,656,130 (6,061,046) 28,595,084 23,773,307 19,619,464 (987,683) 18,631,781 (3,620,360) 15,011,421 198,803,856 728,752,116 927,555,972 18,531,060 902,800,677 927,555,972 - - - (10,160,775) (10,314,474) 27,502,175 188,852,384 (24,686,207) 164,166,176 7,433,439 6,224,235 12,303,680 23,688,400 3,041,428 17,806,175 58,807,290 129,827,799 18,052,849 181,972,351 87,327,393 134,284,880 221,612,273 63,772,100 746,476 157,093,697 221,612,273 210,793,165 (158,318,428) 52,474,737 43,685,496 36,994,098 (427,163) 36,566,936 (12,676,193) 23,890,743 3,336,545 27,227,288 Centrais Elétricas Cachoeira Dourada S.A. Separate 47,664,376 100,003,024 147,667,400 37,718,853 1,171,987 108,776,560 147,667,400 158,965,069 (72,988,916) 85,976,152 78,633,209 71,852,510 6,953,799 78,806,309 (7,617,686) 71,188,623 (212,540) 70,976,083 Separate 44,361,955 230,817,235 275,179,190 107,201,716 6,527,878 161,449,596 275,179,190 67,700,328 (3,343,111) 64,357,217 54,518,387 40,083,633 13,131,369 53,215,002 (19,092,627) 34,122,374 2,426,463 36,548,837 Separate 15,584,323 2,421,427 18,005,750 10,519,818 18,458,001 (10,972,069) 18,005,750 1,622,003 - 1,622,003 1,169,376 1,017,867 (10,464,633) (9,446,765) (718,950) (10,165,715) 238,183 (9,927,532) Compañía Energética Do Ceará S.A. Separate 268,129,640 669,313,258 937,442,898 167,577,487 341,179,908 428,685,503 937,442,898 876,944,301 (606,422,198) 270,522,103 171,230,201 117,379,884 (68,220,958) 49,158,926 EN-Brasil Comercio e Servicios S.A. Separate 6,136,466 1,893,079 8,029,545 5,162,409 2,266,733 600,403 8,029,545 5,537,295 (2,649,496) 2,887,799 611,350 508,118 262,046 770,164 8,091,449 (754,491) 57,250,375 6,084,384 63,334,759 15,673 56,856 72,529 Ampla Energía E Servicios S.A. Separate 320,891,004 1,104,657,097 1,425,548,101 215,091,583 589,157,241 621,299,277 1,425,548,101 1,092,281,884 (707,301,383) 384,980,502 257,576,731 183,845,670 (106,657,268) 77,188,402 (26,650,546) 50,537,856 6,281,883 56,819,739 254,295,501 922,713,629 1,177,009,130 337,839,513 358,873,769 480,295,848 1,177,009,130 982,770,698 (547,593,754) 435,176,944 336,375,500 261,975,074 (26,624,088) 235,397,500 (82,240,147) 153,157,353 (49,593,528) 103,563,825 853 72 925 86 839 925 - - - 409,109,176 405,106,897 814,216,073 739,412,769 137,796,785 (62,993,481) 814,216,073 371,411,786 (161,995,239) 209,416,546 5,388,518 47,434,910 28,225,495 27,292,922 43,338,830 873,712 72,509,102 52,823,428 29,099,207 99,802,024 80,059,964 123,398,794 18,110,685 24,701,137 19,318,481 13,222,522 7,052,044 15,583,458 47,895,051 27,660,699 4,398,070 64,900,085 52,823,428 29,099,207 99,802,024 62,281,221 123,398,794 - 1,280,939 61,606,091 50,848,925 - (203,349) (34,976,794) (20,916,046) - 1,077,590 26,629,297 29,932,879 (49) (37,897,127) (1,029,910) (803,614) 15,187,192 23,494,631 142,931,833 587,886,652 730,818,485 165,061,351 271,208,225 294,548,909 730,818,485 478,694,847 (315,115,521) 163,579,326 119,230,764 (49) - (49) (8) (57) (54) (111) (51,229,198) (38,408,033) (89,602,510) 3,792,056 (85,810,453) (5,608,787) (91,419,240) (1,031,105) (1,029,672) (834,067) 9,464,772 17,583,296 90,973,374 456,221 (27,337,694) (5,339,890) (10,281,167) (1,157,449) (377,846) (17,833,553) 12,252,291 80,724,117 - 36,614 (6,292,935) (3,166,090) (20,152,036) (1,157,449) (341,232) (24,126,488) 9,086,201 60,572,081 2,137,860 (594,259) 6,343,207 4,030,841 14,254,102 980,411 (935,491) (17,783,281) 13,117,042 74,826,183 Grupo Generandes Perú Consolidated 121,446,538 816,077,565 937,524,103 95,676,185 275,049,420 566,798,498 937,524,103 353,794,700 (133,734,610) 220,060,090 184,762,435 141,157,719 (7,267,237) 140,375,290 (29,025,176) 111,350,114 23,873,097 135,223,211 Consolidated 854,733,662 2,303,015,000 3,157,748,662 481,334,130 959,822,163 1,716,592,369 3,157,748,662 2,269,559,959 (1,405,383,543) 864,176,416 598,417,264 442,290,345 (145,647,045) 296,643,299 (85,139,697) 211,503,603 23,085,739 234,589,342 Grupo Endesa Argentina Consolidated 56,074,841 297,050,238 353,125,079 140,459,888 101,749,459 110,915,732 353,125,079 105,265,323 (15,204,196) 90,061,127 45,630,444 27,960,381 49,186,700 77,616,469 (21,104,876) 56,511,593 (5,660,609) 50,850,984 - - - - - Chilectra S.A. Consolidated 300,765,618 1,240,468,967 1,541,234,585 244,981,389 72,612,724 1,223,640,472 1,541,234,585 1,127,892,544 (855,757,751) 272,134,792 181,011,575 152,857,560 5,623,543 186,967,506 (36,244,349) 150,723,157 (3,602,592) 147,120,565 Inmobiliaria Manso de Velasco Ltda, Separate ICT Servicios Informáticos Ltda, Separate 47,631,734 2,214,084 12,103,210 59,734,944 555,542 2,769,626 3,605,662 3,005,476 526,608 1,069,158 55,602,674 (1,305,008) 59,734,944 2,769,626 12,596,339 4,978,226 (2,146,800) - 10,449,539 4,978,226 5,567,964 (1,498,309) 5,359,685 (1,541,569) 587,792 68,519 27,044,615 (1,473,050) (3,029,840) 105,583 24,014,775 (1,367,466) (39,600) (162,551) Empresa Nacional de Electricidad S.A. Separate 560,876,230 3,507,579,867 4,068,456,097 773,846,300 917,950,372 2,376,659,425 4,068,456,097 1,180,478,031 (1,062,428,719) 118,049,313 17,064,677 (135,048,532) (83,048,732) 164,538,279 5,198,626 169,736,906 (101,261,071) Soc, Concesionaria Túnel El Melón S.A. Consolidated 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) 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 5,830,719 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) (604) (12,156) 23,975,175 (1,530,017) 68,475,835 143,111,237 89,899,762 5,818,563 Grupo Endesa Chile Consolidated 1,038,057,559 6,199,614,342 7,237,671,901 1,392,737,593 2,321,047,965 3,523,886,343 7,237,671,901 2,446,534,314 (1,119,458,198) 1,327,076,115 1,094,981,140 875,320,583 (68,781,874) 857,125,255 (238,152,509) 618,972,747 (103,941,898) 515,030,849 Consolidado 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 80,653,225 561 Consolidated Financial Statements                                                                                                            41. Subsequent Events Enersis Américas On January 29, 2016, pursuant to the agreements approved at the Extraordinary Shareholders’ Meeting (“ESM”) of Enersis S.A. (“the Company” or “Enersis”) held on December 18, 2015, the Board of Directors of Enersis S.A. was informed that the condition precedent for the spin-off of Enersis to be effective was met and, consequently, it was issued the public deed entitled “Public Deed of Compliance of the Condition of the Spin- Off of Enersis” which established that the condition precedent has been met on January 29, 2016. Accordingly, and pursuant to what was approved at the ESM, the spin-off of Enersis S.A. became effective on Tuesday, March 1, 2016, a date as of which the new company Enersis Chile S.A. (“Enersis Chile”) began to exist and the reduction of capital and other statutory reforms of the current Company was verified, and the continuing company changed its name to “Enersis Américas S.A.” Also, as agreed by the aforementioned ESM, the Board of Directors of Enersis Chile requested the registration of Enersis Chile and its respective shares in the Securities Registry of the Superintendence of Securities and Insurance and the Stock Exchanges where the shares of Enersis are currently traded. The physical distribution and delivery of shares issued by Enersis Chile shall be carried out on the date established by Enersis Chile’s Board of Directors, once the registration thereof is completed and its shares registered in the Securities Registry of the Superintendence of Securities and Insurance and Chilean Stock Markets and when legal and regulatory requirements are met. Endesa On January 8, 2016, Endesa Chile informed as a Significant Event that it has resolved the illegal occupation perpetrated by three people on the first high-tension pylon which supports the 154 kV and 220 kV circuits owned by Transelec S.A. and serve the Company’s Bocamina power plant. Consequently, the Bocamina power plant resumed its operations. The financial effects due to the illegal occupation that Endesa Chile assumed during the interruption of the transmission of electrical energy were ThCh$  2,698,608 (U.S. $ 3.8 million) decrease in the contribution margin between November 23, 2015 and January 7, 2016. At the electrical system level, this situation increased the global costs of supplying demand, increasing spot prices and the anticipated use of hydroelectric reserves, which in the coming months will not be available. On January 29, 2016, Endesa Chile informed as a Significant Event that on January 28, 2016, pursuant to the agreements approved at the Extraordinary Shareholders’ Meeting (“ESM”) of Endesa Chile held on December 18, 2015, the Board of Directors of Endesa Chile was informed that the condition precedent for the spin-off Enersis to be effective was met and, consequently, it was issued the public deed entitled “Public Deed of Compliance of the Condition of the Spin-Off of Empresa Nacional de Electricidad S.A.” which established that the condition precedent has been met on January 29, 2016. Accordingly, and pursuant to what was approved at the ESM, the spin-off of Endesa Chile became effective on Tuesday, March 1, 2016, a date as of which the new company Endesa Américas S.A. began to exist and the reduction of capital and other statutory reforms of Endesa Chile. 562 2015 Annual Report Enersis Additionally, as a result of formalization of Endesa Chile’s spin-off, it was triggered on that date the obligation for Endesa Chile to pay taxes in Peru for a total amount of $ 577 million of nuevos soles (ThCh$ 120,299,000 approximately). This tax, that will be paid during March 2016, is applicable under the Peruvian Income Tax Law to the transfer of the ownership interests that Endesa Chile held in that country that were transfered to Endesa Américas S.A. The tax is calculated as the difference between the disposal value and the acquisition cost of the ownership interests previously mentioned. Also, as agreed by the aforementioned ESM, the Board of Directors of Endesa Américas requested the registration of Endesa Américas and its respective shares in the Securities Registry of the Superintendence of Securities and Insurance and the Stock Exchanges where the shares of Endesa Chile are currently traded. The physical distribution and delivery of shares issued by Endesa Américas S.A. shall be carried out on the date established by Endesa Américas S.A.’s Board of Directors, once the registration thereof is completed and its shares registered in the Securities Registry of the Superintendence of Securities and Insurance and Chilean Stock Markets and when legal and regulatory requirements are met. The amount of issued capital allocated to Endesa Américas was ThCh$ 778,936,764. Chilectra On January 29, 2016, it was issued the public deed entitled “Public Deed of Compliance of the Condition of the Spin-Off of Chilectra”, pursuant to which it was declared the complete fulfillment of the condition precedent for the spin-off of Chilectra S.A. as agreed to at the Extraordinary Shareholders’ Meeting (“ESM”) of Chilectra S.A. held on December 18, 2015, which required to the minutes of each the shareholders’ meetings where it was approved the spin-offs of Empresa Nacional de Electricidad S.A and Enersis S.A. were duly registered as public deeds, and their corresponding extracts were, duly and timely, registered and published in accordance with the law. In accordance with the ESM, the spin-off of Chilectra, and as a result of the incorporation of a new entity named Chilectra Américas S.A. (“Chilectra Américas”), will be effective for all legal, operational, accounting and tax purposes beginning on February 1, 2016. Consequently, from that date on, the allocated assets and liabilities pursuant to the spin-off, were transferred to Chilectra Américas without any necessary declaration or additional formality, notwithstanding the necessary or convenient activities needed to register before the corresponding legal bodies about the allocation of all assets that are being transferred and the final novation of the liabilities transferred pursuant to the Company’s spin-off. Additionally, as a result of formalization of Chilectra’s spin-off, it was triggered on that date the obligation for Chilectra to pay taxes in Peru for a total amount of $ 73.8 million of soles (ThCh$ 15,400,000 approximately). This tax, that will be paid during March 2016, is applicable under the Peruvian Income Tax Law to the transfer of the ownership interests that Chilectra held in that country that were transfered to Chilectra Américas S.A.. The tax is calculated as the difference between the disposal value and the acquisition cost of the ownership interests previously mentioned. Also, as agreed by the aforementioned ESM, the Board of Directors of Chilectra Américas requested the registration of Chilectra Américas and its respective shares in the Securities Registry of the Superintendence of Securities and Insurance and the Stock Exchanges. The physical distribution and delivery of shares issued by Chilectra Américas S.A. shall be carried out on the date established by Chilectra Américas S.A.’s Board of Directors, once the registration thereof is completed and its shares registered in the Securities Registry of the Superintendence of Securities and Insurance and Chilean Stock Markets and when legal and regulatory requirements are met. 563 Consolidated Financial StatementsChilectra Américas On February 15, 2016, at the Extraordinary Board of Directors’ Session No. 1, Mr. Livio Gallo was appointed as Chairman of the Board, and Mr. Gianluca Caccialupi as Vice-Chairman. Also, at the same session, Mr. Andreas Gebhardt Strobel was appointed as Chief Executive Officer of Chilectra Américas. At the same Board of Directors’ Session, it was agreed to stablish the customary transactions general policy in accordance with Article 147 paragraph b) of Law 18,046. The Board of Directors unanimously agreed to establish the customary transactions general policy, as it relates to those ordinary transactions in terms of the business purpose and that entails to the principal activity of the company. For that purpose, it must be taken in to consideration that Chilectra Américas S.A. is a holding company with few employees, and as such, in order to operate it has to sign a number of service contracts that would allow it to perform its corporate purpose activities. Consequently, the following transactions are related to the ordinary and customary corporate purpose activities of Chilectra Américas S.A.: 1. Commercial current account between Chilectra Américas S.A. and its related parties, by which one of the parties shall remit to the other or receive from it amounts of money or other securities, without application to a particular use or obligation to have an amount of equivalent value, but to accredit to the remitter for its remittances, to settle them within the conveyed dates, to compensate them at once until concurrence of debit and credit and to pay the balance. 2. Contract to render Legal Services and Board of Directors (“the Board”) Secretariat, which includes, inter alia, to legally assist the Board of Chilectra Américas S.A., its Chief Executive Officer and the other key executives, to prepare and manage in legal related-matters the Board meetings, to assits the Company for compliance with regulations related to corporations, stock markets, free competition, environmental, commercial, labor and other applicable regulations and to manage litigations affecting the Company. 3. Contract to render the following services: i) Network commercial operations; ii) Network developments; iii) Network Technology; iv) Health, Safety, Quality and Environment; and v) Operation and Maintenance. 4. Contract to render the following services: i) Human Resources and Organization; ii) Communications; iii) Taxes; iv) Finance and Accounting; v) Internal Audit; vi) Insurance, y vii) Treasury. 5. Contracts related to services of agency communications, infrastructure, innovation, administration and finance, legal and other related services aimed to fulfill the corporate purpose of the Company. Finally, it is important to note that the entire text of the customary general policy will be available to the shareholders at the corporate offices and in the website of the Company. Edesur On January 25, 2016, the Ministry of Energy and Mining (“MEyM” in its Spanish acronym) issued Resolution No. 6/2016 which approved the Summer Quarterly Re-scheduling (“Reprogramación Trimestral de Verano”) applicable to the Wholesale Electricity Market (“MEM” in its Spanish acronym) and established the seasonal reference prices for energy and capacity for the February-April 2016 period. 564 2015 Annual Report Enersis Additionally, in order to move towards proper management of demand through incentives for saving and rational use of electricity of residential end users (“Plan Estímulo”), implemented through the MEM, an incentive system that will result in a mechanism of decreasing energy prices as counterpart of the effort of each residential user to reduce unnecessary consumption, which will be determined by comparing the monthly energy consumption with the one recorded in the same month of 2015. Moreover, given the social significance of the electricity service, the previously mentioned Resolution defines an energy volume at a price named Social Tariff (“Tarifa Social”), to be transferred at a minimum price to those included in the population of end users who, based on the criteria of classification communicated by the Ministry of Social Development of the Nation (“Ministerio de Desarrollo Social de la Nación”), lacks sufficient payment capacity to afford the general established prices. Access to reduced wholesale prices for Social Tariff and incentive for saving are subject to the compliance with, in the case of distribution companies, the payment obligations in the MEM due from the effective date of this Resolution. Likewise, those distribution companies with outstanding debts with CAMMESA as of issuance date of the Resolution, as in the case of Edesur, shall agree to, in no less than 30 business days, a payment plan for the past due debt and, also, to ensure payment of its purchases in the MEM through transferring its accounts receivables or other equivalent alternative mechanism at CAMMESA’s satisfaction, so as to ensure both the collection on current billing and the payment of the installments in the agreement to sign related to the past due debt. Subsequently, on January 27, 2016, it was issued Resolution MEyM No. 7/2016 instruction E.N.R.E. to: i. Adjust the VAD in the tariff tables of the Company, on account of the RTI within the framework of the Transitional Tariff Regime established in the Agreement Act (“Acta Acuerdo”). ii. Apply a Social Tariff to the population of end users resulting from the application of certain eligibility criteria, namely: be a retiree or pensioner for an amount equivalent to twice minimum salary; employed persons in a dependency relationship earning a gross remuneration lower or equal to two minimum salaries; be beneficiary in social programs; be enrolled in the Social Monotributo Regime; be incorporated in the Social Security Special Regime for domestic service workers; receiving unemployment insurance; or have a disability certificate, being excluded from the benefit those owners of more than real estate, motor vehicles whose models are up to 15 years old, or luxury aircrafts and boats. iii. Include in the tariff tables the saving of electrical energy plan as stated in Resolution MEyM No. 6/2016. iv. Carry out all necessary activities to proceed to the RTI, which must be effective before December 31, 2016. In order for users to improve their household finances, the ENRE shall have the necessary means in terms of implementing the monthly payments for the distribution public service rendered by the Company. Furthermore, Resolution MEyM N° 7/2016 annulled the Energy Efficiency Program (“PUREE” in its Spanish acronym) from the effective date of the new tariff values and will cease the application of the planned projects financing mechanism by mutual loans with CAMMESSA. Finally, the Resolution established that the dividend distribution must agree the Agreement Act, which subordinate to verification from the ENRE of compliance with the investment plan. 565 Consolidated Financial StatementsIn line with above, on January 29, 2016, the ENRE issued Resolutions No. 1/2016 y No. 2/2016. The former approves the values of the tariff table of the Company to be effective upon invoicing the corresponding meter readings after midnight of February 1, 2016, while the latter terminates, effective on January 31, 2016, the actual trust scheme (“FOCEDE” in its Spanish acronym) for managing the funds from the application of Resolution ENRE N° 347/2012. The resolutions indicated above assumed significant effects throughout the businesses activities of the Company. In addition to a potential increase in invoicing amounts and potential increase in past due receivables ratios, etc., it also leads to a significant effect in the value updates of the fines, which the Company is currently quantifying and in discussions with the ENRE to agree the next steps. There are no other subsequent events that have ocurred between january 1,2016 and the issuance date of these financial statements. Appendix 1 Enersis Américas Group Entities This appendix is part of Note 2.4, “Subsidiaries.” It presents the Group’s percentage of control in each company. Foreign Foreign Atacama Finance Co (2) U.S. dollar 0.00% 0.00% 0.00% Taxpayer ID No. (RUT) Company ( in alphabetical order) 96.773.290-7 Aguas Santiago Poniente S.A. (1) Ampla Energía E Serviços S.A. Currency Chilean peso Brazilian real Percentage of control at 12/31/2015 Percentage of control at 12/31/2014 Direct 0.00% 13.68% Indirect 0.00% 85.95% Total 0.00% 99.63% Foreign Foreign 76.003.204-2 Foreign 99.573.910-0 96.800.570-7 Chilectra S.A. Brazilian real Centrais Elétricas Cachoeira Dourada S.A. Argentine peso Central Dock Sud. S.A. Central Eólica Canela S.A. Chilean peso Central Generadora Termoeléctrica Fortaleza S.A. Brazilian real Chilean peso Chilectra Inversud S.A. Chilean peso Peruvian nuevo sol Brazilian real Argentine peso Compañía de Interconexión Energética S.A. Compañía de Transmisión del Mercosur S.A. Compañía Distribuidora y Comercializadora de energía S.A. (3) Chinango S.A.C. Foreign Foreign Foreign Foreign 0.00% 0.00% 0.00% 0.00% 0.00% 99.08% 99.61% 69.99% 75.00% 100.00% 100.00% 0.01% 99.61% 69.99% 75.00% 100.00% 100.00% 99.09% 0.00% 80.00% 80.00% 0.00% 0.00% 100.00% 99.99% 100.00% 99.99% Colombian peso 21.14% 36.01% 57.15% 57.15% Subsidiary Colombia Electric energy distribution and sales 96.770.940-9 Compañía Eléctrica Tarapacá S.A. Foreign 96.764.840-K Foreign Compañía Energética Do Ceará S.A. Constructora y Proyectos Los Maitenes S.A. (1) Distrilec Inversora S.A. Foreign Edegel S.A.A Foreign Foreign Foreign Foreign Foreign 96.783.910-8 Electrica Cabo Blanco. S.A.C. Emgesa S.A. E.S.P. (3) Emgesa Panama S.A. (3) Empresa de Distribución Eléctrica de Lima Norte S.A.A Empresa Distribuidora Sur S.A. Empresa Eléctrica de Colina Ltda, Foreign Empresa Eléctrica de Piura. S.A. 96.504.980-0 91.081.000-6 Empresa Eléctrica Pehuenche S.A. Empresa Nacional de Electricidad S,A Chilean peso Brazilian real Chilean peso Argentine peso Peruvian nuevo sol Peruvian nuevo sol Colombian peso U.S. dollar Peruvian nuevo sol Argentine peso Chilean peso Peruvian nuevo sol Chilean peso Chilean peso 3.78% 15.18% 0.00% 27.19% 96.21% 58.87% 0.00% 24.31% 99.99% 74.05% 0.00% 51.50% 0.00% 83.60% 83.60% 80.00% 20.00% 100.00% 21.60% 0.00% 34.83% 56.43% 56.43% 56.43% 24.00% 51.68% 75.68% 16.02% 0.00% 83.43% 100.00% 99.45% 100.00% 0.00% 96.50% 96.50% 0.00% 59.98% 92.65% 0.00% 92.65% 59.98% 566 2015 Annual Report Enersis Direct 0.00% 13.68% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 99.08% 0.00% 0.00% 0.00% 21.14% 3.78% 15.18% 0.00% 27.19% 0.00% 80.00% 21.60% 0.00% 24.00% 16.02% 0.00% 0.00% 0.00% 59.98% Indirect 0.00% 85.95% 0.00% 99.61% 69.99% 75.00% 100.00% 100.00% 0.01% 80.00% 100.00% 99.99% 36.01% 96.21% 58.87% 0.00% 24.31% 83.60% 20.00% 34.83% 56.43% 51.68% 83.43% 100.00% 96.50% 92.65% 0.00% Type of Total Relationship Country Activity 0.00% Subsidiary Chile Sanitation services 0.00% Subsidiary Finance company Cayman Islands 99.63% Subsidiary Brazil Electric energy production, transportation and distribution 99.61% Subsidiary Brazil Generation and sale of electricity 69.99% Subsidiary Argentina Electric energy generation, transmission and distribution 75.00% Subsidiary Chile Promotion and development of renewable energy projects 100.00% Subsidiary Brazil Development of a thermoelectric project 100.00% Subsidiary Chile Portfolio company 99.09% Subsidiary Chile Ownership interest in companies of any nature 80.00% Subsidiary Peru Electric energy generation, sales and distribution 100.00% Subsidiary Brazil Electric energy production, transportation and distribution 99.99% Subsidiary Argentina Electric energy production, transportation and distribution 99.99% Subsidiary Chile Complete electric energy cycle 74.05% Subsidiary Brazil Complete electric energy cycle 0.00% Subsidiary Chile Construction and facilities 51.50% Subsidiary Argentina Portfolio company 83.60% Subsidiary Peru Electric energy generation, sales and distribution 100.00% Subsidiary Peru Portfolio company 56.43% Subsidiary Colombia Electric energy generation 56.43% Subsidiary Panama Purchase/sale of electric energy 75.68% Subsidiary Peru Electric energy distribution and sales 99.45% Subsidiary Argentina Electric energy distribution and sales 100.00% Subsidiary Chile Complete energy cycle and related supplies 96.50% Subsidiary Peru 92.65% Subsidiary Chile Complete electric energy cycle 59.98% Subsidiary Chile Complete electric energy cycle In line with above, on January 29, 2016, the ENRE issued Resolutions No. 1/2016 y No. 2/2016. The former approves the values of the tariff table of the Company to be effective upon invoicing the corresponding meter readings after midnight of February 1, 2016, while the latter terminates, effective on January 31, 2016, the actual trust scheme (“FOCEDE” in its Spanish acronym) for managing the funds from the application of Resolution ENRE N° 347/2012. The resolutions indicated above assumed significant effects throughout the businesses activities of the Company. In addition to a potential increase in invoicing amounts and potential increase in past due receivables ratios, etc., it also leads to a significant effect in the value updates of the fines, which the Company is currently quantifying and in discussions with the ENRE to agree the next steps. There are no other subsequent events that have ocurred between january 1,2016 and the issuance date of these financial statements. Appendix 1 Enersis Américas Group Entities This appendix is part of Note 2.4, “Subsidiaries.” It presents the Group’s percentage of control in each company. Taxpayer ID No. (RUT) Company ( in alphabetical order) 96.773.290-7 Aguas Santiago Poniente S.A. (1) Ampla Energía E Serviços S.A. Atacama Finance Co (2) Centrais Elétricas Cachoeira Dourada S.A. Brazilian real Central Dock Sud. S.A. 76.003.204-2 Central Eólica Canela S.A. 99.573.910-0 Chilectra Inversud S.A. 96.800.570-7 Chilectra S.A. Foreign Central Generadora Termoeléctrica Fortaleza S.A. Brazilian real Direct 0.00% 13.68% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 99.08% Indirect 0.00% 85.95% Total 0.00% 99.63% 0.00% 0.00% 99.61% 69.99% 75.00% 100.00% 100.00% 0.01% 99.61% 69.99% 75.00% 100.00% 100.00% 99.09% Chinango S.A.C. 0.00% 80.00% 80.00% Compañía de Interconexión Energética S.A. Brazilian real Compañía de Transmisión del Mercosur S.A. Argentine peso 0.00% 0.00% 100.00% 99.99% 100.00% 99.99% Compañía Distribuidora y Comercializadora de energía S.A. (3) Colombian peso 21.14% 36.01% 57.15% 96.770.940-9 Compañía Eléctrica Tarapacá S.A. Foreign Compañía Energética Do Ceará S.A. Chilean peso Brazilian real 96.764.840-K Constructora y Proyectos Los Maitenes S.A. (1) Chilean peso Distrilec Inversora S.A. Edegel S.A.A Electrica Cabo Blanco. S.A.C. Emgesa S.A. E.S.P. (3) Emgesa Panama S.A. (3) S.A.A Empresa Distribuidora Sur S.A. 96.783.910-8 Empresa Eléctrica de Colina Ltda, Foreign Empresa Eléctrica de Piura. S.A. Empresa de Distribución Eléctrica de Lima Norte Peruvian nuevo 3.78% 15.18% 0.00% 27.19% 96.21% 58.87% 0.00% 24.31% 99.99% 74.05% 0.00% 51.50% 0.00% 83.60% 83.60% 80.00% 20.00% 100.00% Colombian peso U.S. dollar 21.60% 0.00% 34.83% 56.43% 56.43% 56.43% Argentine peso Chilean peso Peruvian nuevo 24.00% 51.68% 75.68% 16.02% 0.00% 83.43% 100.00% 99.45% 100.00% 0.00% 96.50% 96.50% 96.504.980-0 Empresa Eléctrica Pehuenche S.A. 91.081.000-6 Empresa Nacional de Electricidad S,A Chilean peso Chilean peso 0.00% 59.98% 92.65% 0.00% 92.65% 59.98% Currency Chilean peso Brazilian real U.S. dollar Argentine peso Chilean peso Chilean peso Chilean peso Peruvian nuevo sol Argentine peso Peruvian nuevo Peruvian nuevo sol sol sol sol Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Percentage of control at 12/31/2015 Percentage of control at 12/31/2014 Direct 0.00% 13.68% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 99.08% 0.00% 0.00% 0.00% 21.14% 3.78% 15.18% 0.00% 27.19% 0.00% 80.00% 21.60% 0.00% 24.00% 16.02% 0.00% 0.00% 0.00% 59.98% Indirect 0.00% 85.95% 0.00% 99.61% 69.99% 75.00% 100.00% 100.00% 0.01% 80.00% 100.00% 99.99% 36.01% 96.21% 58.87% 0.00% 24.31% 83.60% 20.00% 34.83% 56.43% 51.68% 83.43% 100.00% 96.50% 92.65% 0.00% Type of Relationship Country Activity Total 0.00% Subsidiary Chile 99.63% Subsidiary Brazil Sanitation services Electric energy production, transportation and distribution 0.00% Subsidiary Cayman Islands Finance company Generation and sale of electricity 99.61% Subsidiary Brazil 69.99% Subsidiary Argentina Electric energy generation, transmission and distribution 75.00% Subsidiary Chile 100.00% Subsidiary Brazil 100.00% Subsidiary Chile 99.09% Subsidiary Chile Promotion and development of renewable energy projects Development of a thermoelectric project Portfolio company Ownership interest in companies of any nature 80.00% Subsidiary Peru Electric energy generation, sales and distribution 100.00% Subsidiary Brazil Electric energy production, transportation and distribution 99.99% Subsidiary Argentina Electric energy production, transportation and distribution 57.15% Subsidiary Colombia Electric energy distribution and sales 99.99% Subsidiary Chile 74.05% Subsidiary Brazil 0.00% Subsidiary Chile 51.50% Subsidiary Argentina Portfolio company Complete electric energy cycle Complete electric energy cycle Construction and facilities 83.60% Subsidiary Peru Electric energy generation, sales and distribution 100.00% Subsidiary Peru Portfolio company 56.43% Subsidiary Colombia Electric energy generation 56.43% Subsidiary Panama Purchase/sale of electric energy 75.68% Subsidiary Peru Electric energy distribution and sales 99.45% Subsidiary Argentina Electric energy distribution and sales 100.00% Subsidiary Chile Complete energy cycle and related supplies 96.50% Subsidiary Peru 92.65% Subsidiary Chile 59.98% Subsidiary Chile Complete electric energy cycle Complete electric energy cycle 567 Consolidated Financial StatementsTaxpayer ID No. (RUT) Company ( in alphabetical order) Foreign Foreign Foreign Foreign Foreign Foreign Endesa Argentina S.A. Enel Brasil S.A. Endesa Cemsa S.A. Central Costanera S.A. En-Brazil Comercio e Servicios S.A. Eólica Fazenda Nova-Geracao e Comercializacao de Energia S.A. Currency Argentine peso Brazilian real Argentine peso Argentine peso Brazilian real Percentage of control at 12/31/2015 Percentage of control at 12/31/2014 Direct 0.00% 50.09% 55.00% 0.00% 0.00% Indirect 100.00% 49.91% 45.00% 75.68% 100.00% Total 100.00% 100.00% 100.00% 75.68% 100.00% Brazilian real 0.00% 99.95% 99.95% 99.95%Subsidiary Brazil Energy generation, transmission, distribution and sales Foreign Energex Co (2) U.S. dollar 0.00% 0.00% 0.00% 76.014.570-K Inversiones GasAtacama Holding Ltda. (4) U.S. dollar 0.00% 100.00% 100.00% 9.830.980-3 GasAtacama S.A. U.S. dollar 0.00% 100.00% 100.00% 78.932.860-9 GasAtacama Chile S.A. 77.032.280-4 Gasoducto TalTal S.A. 78.952.420-3 Gasoducto Atacama Argentina S.A. Foreign Generalima, S.A.C. Foreign Generandes Peru S.A. (5) 76.676.750-8 Foreign Foreign 76.107.186-6 Foreign 79.913.810-7 GNL Norte S.A. Hidroeléctrica El Chocón S.A. Hidroinvest S.A. Servicios Informáticos e Inmobiliarios Ltda. (6) Ingendesa do Brazil Ltda. Inmobiliaria Manso de Velasco Ltda. (6) Foreign Inversiones Distrilima S.A. Foreign Foreign 96.800.460-3 Inversora Dock Sud, S.A. Inversora Codensa S.A.S. Luz Andes Ltda. U.S. dollar Chilean peso U.S. dollar Peruvian nuevo sol Peruvian nuevo sol Chilean peso Argentine peso Argentine peso Chilean peso Brazilian real Chilean peso Peruvian nuevo sol Argentine peso Colombian peso Chilean peso 0.00% 0.00% 0.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 0.00% 100.00% 100.00% 100.00%Subsidiary Peru Portfolio company 39.00% 61.00% 100.00% 0.00% 0.00% 0.00% 99.00% 0.00% 99.99% 100.00% 67.67% 96.09% 1.00% 100.00% 0.00% 100.00% 67.67% 96.09% 100.00% 100.00% 99.99% 34.99% 50.21% 85.20% 57.14% 0.00% 0.00% 0.00% 100.00% 100.00% 57.14% 100.00% 100.00% 96.905.700-K Progas S.A. Chilean peso 0.00% 100.00% 100.00% 77.047.280-6 96.671.,360-7 Sociedad Concesionaria Túnel El Melón S.A. (7) Sociedad Agrícola de Cameros Ltda. Chilean peso Chilean peso 0.00% 0.00% 57.50% 0.00% 57.50% 0.00% Foreign Foreign Foreign Sociedad Portuaria Central Cartagena S.A. Colombian peso 0.00% 100.00% 100.00% Southern Cone Power Argentina S.A. Transportadora de Energía S.A. Argentine peso Argentine peso 0.00% 0.00% 100.00% 100.00% 100.00% 100.00% (1) On 30 December 2014, the companies Aguas Santiago Poniente SA and Constructora y Proyectos los Maitenes SA were sold. (2) On September 17, 2014, Atacama Finance Co and Energex Co were dissolved. (3) See Note 2.4.2 (4) On April 22, 2014, Endesa Chile acquired the remaining 50% equity interest in Inversiones GasAtacama Holding Limitada, (See Note 6). (5) On September 3, 2014, Enersis Américas acquired 100% ownership interest of Inkia Holdings (Acter) Limited, Southern Cone Power Ltd., Latin American Holding I Ltd., Latin American Holding II Ltd. and Southern Cone Power Peru S.A.A.. On December 31, 2014, Inkia Holdings was merged with Generandes Peru S.A., with the latter absorbing entities of Inkia Group. (6) 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. (7) On January 9, 2015, Sociedad Concesionaria Túnel el Melón S.A. was sold (See Note 2.4.1) Direct 0.00% 50.09% 55.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 39.00% 0.00% 0.00% 0.00% 99.00% 0.00% 99.99% 34.99% 57.14% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Indirect 100.00% 49.91% 45.00% 75.68% 100.00% 99.95% 0.00% 100.00% 100.00% 100.00% 100.00% 100.00% 0.00% 61.00% 100.00% 67.67% 96.09% 1.00% 100.00% 0.00% 50.21% 0.00% 100.00% 100.00% 100.00% 57.50% 100.00% 100.00% 100.00% 100.00% Type of Total Relationship Country Activity 100.00% Subsidiary Argentina Portfolio company 100.00% Subsidiary Brazil Portfolio company 100.00% Subsidiary Argentina Wholesale purchase and sale of electric energy 75.68%Subsidiary Argentina Electric energy generation and sales 100.00%Subsidiary Brazil Services in general for the electricity and other sectors 0.00%Subsidiary Portfolio company Cayman Islands 100.00%Subsidiary Chile Natural gas transportation Exploitation, generation, transmission and distribution of electric 100.00%Subsidiary Chile 100.00%Subsidiary 100.00%Subsidiary 100.00%Subsidiary Chile Chile Chile energy and natural gas Company management Natural gas transportation, sale and distribution Natural gas exploitation and transportation 100.00%Subsidiary Peru Portfolio company 100.00%Subsidiary Chile Energy and fuel production, transportation and distribution 67.67%Subsidiary Argentina Electric energy production and sales 96.09%Subsidiary Argentina Portfolio company 100.00%Subsidiary 100.00%Subsidiary 99.99%Subsidiary Chile Brazil Chile Information Technology services Project engineering consulting Construction and works 85.20%Subsidiary Peru Portfolio company 57.14%Subsidiary Argentina Portfolio company 100.00%Subsidiary Colombia Investment in domestic public energy services 100.00%Subsidiary Chile Energy and fuel transportation, distribution and sales Purchase, production, transportation and commercial distribution of 100.00%Subsidiary Chile 57.50%Subsidiary 100.00%Subsidiary Chile Chile natural gas Financial investments 100.00%Subsidiary Colombia wharves and ports 100.00%Subsidiary Argentina Portfolio company Execution, construction and operation of the El Melón tunnel Investment, construction and maintenance of public or private 100.00%Subsidiary Argentina Electric energy production, transportation and distribution 568 2015 Annual Report Enersis Percentage of control at 12/31/2015 Percentage of control at 12/31/2014 Direct 0.00% 50.09% 55.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Foreign Generalima, S.A.C. 100.00% 0.00% 100.00% 100.00% 39.00% 0.00% 0.00% 0.00% 99.00% 0.00% 99.99% 34.99% 57.14% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Indirect 100.00% 49.91% 45.00% 75.68% 100.00% 99.95% 0.00% 100.00% 100.00% 100.00% 100.00% 100.00% 0.00% 61.00% 100.00% 67.67% 96.09% 1.00% 100.00% 0.00% 50.21% 0.00% 100.00% 100.00% 100.00% 57.50% 100.00% 100.00% 100.00% 100.00% Taxpayer ID No. (RUT) Company ( in alphabetical order) Endesa Argentina S.A. Enel Brasil S.A. Endesa Cemsa S.A. Central Costanera S.A. Foreign Foreign Foreign Foreign Foreign Foreign En-Brazil Comercio e Servicios S.A. Eólica Fazenda Nova-Geracao e Comercializacao de Energia S.A. Currency Argentine peso Brazilian real Argentine peso Argentine peso Brazilian real Direct 0.00% 50.09% 55.00% 0.00% 0.00% Indirect 100.00% 49.91% 45.00% 75.68% 100.00% Total 100.00% 100.00% 100.00% 75.68% 100.00% Brazilian real 0.00% 99.95% 99.95% Foreign Energex Co (2) U.S. dollar 0.00% 0.00% 0.00% 76.014.570-K Inversiones GasAtacama Holding Ltda. (4) U.S. dollar 0.00% 100.00% 100.00% 9.830.980-3 GasAtacama S.A. U.S. dollar 0.00% 100.00% 100.00% 78.932.860-9 GasAtacama Chile S.A. 77.032.280-4 Gasoducto TalTal S.A. 78.952.420-3 Gasoducto Atacama Argentina S.A. Foreign Generandes Peru S.A. (5) 76.676.750-8 GNL Norte S.A. Foreign Foreign Hidroeléctrica El Chocón S.A. Hidroinvest S.A. Foreign Foreign Foreign Inversiones Distrilima S.A. Inversora Dock Sud, S.A. Inversora Codensa S.A.S. 96.800.460-3 Luz Andes Ltda. 96.905.700-K Progas S.A. 76.107.186-6 Servicios Informáticos e Inmobiliarios Ltda. (6) Chilean peso Foreign Ingendesa do Brazil Ltda. 79.913.810-7 Inmobiliaria Manso de Velasco Ltda. (6) U.S. dollar Chilean peso U.S. dollar Peruvian nuevo Peruvian nuevo sol sol Chilean peso Argentine peso Argentine peso Brazilian real Chilean peso Peruvian nuevo sol Argentine peso Colombian peso Chilean peso 0.00% 0.00% 0.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 39.00% 61.00% 100.00% 0.00% 0.00% 0.00% 99.00% 0.00% 99.99% 100.00% 100.00% 67.67% 96.09% 1.00% 100.00% 0.00% 67.67% 96.09% 100.00% 100.00% 99.99% 34.99% 50.21% 85.20% 57.14% 0.00% 0.00% 0.00% 100.00% 100.00% 57.14% 100.00% 100.00% Chilean peso 0.00% 100.00% 100.00% 77.047.280-6 Sociedad Agrícola de Cameros Ltda. Chilean peso 96.671.,360-7 Sociedad Concesionaria Túnel El Melón S.A. (7) Chilean peso 0.00% 0.00% 57.50% 0.00% 57.50% 0.00% Foreign Foreign Foreign Sociedad Portuaria Central Cartagena S.A. Colombian peso 0.00% 100.00% 100.00% Southern Cone Power Argentina S.A. Transportadora de Energía S.A. Argentine peso Argentine peso 0.00% 0.00% 100.00% 100.00% 100.00% 100.00% (1) On 30 December 2014, the companies Aguas Santiago Poniente SA and Constructora y Proyectos los Maitenes SA were sold. (2) On September 17, 2014, Atacama Finance Co and Energex Co were dissolved. (3) See Note 2.4.2 (4) On April 22, 2014, Endesa Chile acquired the remaining 50% equity interest in Inversiones GasAtacama Holding Limitada, (See Note 6). (5) On September 3, 2014, Enersis Américas acquired 100% ownership interest of Inkia Holdings (Acter) Limited, Southern Cone Power Ltd., Latin American Holding I Ltd., Latin American Holding II Ltd. and Southern Cone Power Peru S.A.A.. On December 31, 2014, Inkia Holdings was merged with Generandes Peru S.A., with the latter absorbing entities of Inkia Group. (6) 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. (7) On January 9, 2015, Sociedad Concesionaria Túnel el Melón S.A. was sold (See Note 2.4.1) Type of Relationship Country Activity Total 100.00% Subsidiary Argentina Portfolio company Portfolio company 100.00% Subsidiary Brazil 100.00% Subsidiary Argentina Wholesale purchase and sale of electric energy 75.68%Subsidiary 100.00%Subsidiary Argentina Electric energy generation and sales Brazil Services in general for the electricity and other sectors 99.95%Subsidiary Brazil Energy generation, transmission, distribution and sales 0.00%Subsidiary 100.00%Subsidiary Cayman Islands Chile 100.00%Subsidiary Chile 100.00%Subsidiary 100.00%Subsidiary 100.00%Subsidiary Chile Chile Chile Portfolio company Natural gas transportation Exploitation, generation, transmission and distribution of electric energy and natural gas Company management Natural gas transportation, sale and distribution Natural gas exploitation and transportation 100.00%Subsidiary Peru Portfolio company 100.00%Subsidiary Peru Portfolio company 100.00%Subsidiary 67.67%Subsidiary 96.09%Subsidiary 100.00%Subsidiary 100.00%Subsidiary 99.99%Subsidiary Energy and fuel production, transportation and distribution Chile Argentina Electric energy production and sales Argentina Portfolio company Chile Brazil Chile Information Technology services Project engineering consulting Construction and works 85.20%Subsidiary Peru Portfolio company 57.14%Subsidiary 100.00%Subsidiary 100.00%Subsidiary 100.00%Subsidiary 57.50%Subsidiary 100.00%Subsidiary 100.00%Subsidiary 100.00%Subsidiary 100.00%Subsidiary Argentina Portfolio company Colombia Investment in domestic public energy services Chile Chile Chile Chile Energy and fuel transportation, distribution and sales Purchase, production, transportation and commercial distribution of natural gas Financial investments Execution, construction and operation of the El Melón tunnel Investment, construction and maintenance of public or private wharves and ports Argentina Portfolio company Argentina Electric energy production, transportation and distribution Colombia 569 Consolidated Financial StatementsAppendix 2 Changes in the Scope of Consolidation This appendix is part of Note 2.4.1 “Changes in the scope of consolidation”. Incorporation into the scope of consolidation: Company Inversiones GasAtacama Holding Ltda, Atacama Finance Co, (1) Energex Co, (1) GasAtacama S.A. GasAtacama Chile S.A. Gasoducto TalTal S.A. Gasoducto Atacama Argentina S.A. GNL Norte S.A. Progas S.A. Direct Indirect Total Consolidation Method Direct Indirect Total Consolidation Method Ownership Interest at 12-31-2015 Ownership Interest at 12-31-2014 - - - - - - - - - - - - - - - - - - - - - - - - - - - 100.00% 0.00% 0.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 0.00% 0.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% Full integration Full integration Full integration Full integration Full integration Full integration Full integration Full integration Full integration (1) On 17 September 2014, Atacama Finance Co and Energex Co were dissolved. Companies eliminated from the scope of consolidation: Company Aguas Santiago Poniente S.A. Constructora y Proyectos Los Maitenes S.A. Sociedad Concesionaria Túnel El Melón S.A. Direct Indirect Total Consolidation Method Direct Indirect Total Consolidation Method Ownership Interest at 12-31-2015 Ownership Interest at 12-31-2014 - - - - - - - - - 100.00% 100.00% Full integration 78.88% 55.00% - 78.88% 55.00% - Full integration Full integration - 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% - 570 2015 Annual Report Enersis                                                                         Appendix 2 Changes in the Scope of Consolidation This appendix is part of Note 2.4.1 “Changes in the scope of consolidation”. Incorporation into the scope of consolidation: Company Inversiones GasAtacama Holding Ltda, Atacama Finance Co, (1) Energex Co, (1) GasAtacama S.A. GasAtacama Chile S.A. Gasoducto TalTal S.A. Gasoducto Atacama Argentina S.A. GNL Norte S.A. Progas S.A. Company Aguas Santiago Poniente S.A. Constructora y Proyectos Los Maitenes S.A. Sociedad Concesionaria Túnel El Melón S.A. - - - - - - - - - - - - - - - - - - - - - - - (1) On 17 September 2014, Atacama Finance Co and Energex Co were dissolved. Companies eliminated from the scope of consolidation: - - - - - - - - - - - Direct Indirect Total Consolidation Method Direct Indirect Total Consolidation Method Ownership Interest at 12-31-2015 Ownership Interest at 12-31-2014 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% 0.00% 0.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 0.00% 0.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% Full integration Full integration Full integration Full integration Full integration Full integration Full integration Full integration Full integration Direct Indirect Total Consolidation Method Direct Indirect Total Consolidation Method Ownership Interest at 12-31-2015 Ownership Interest at 12-31-2014 100.00% 100.00% Full integration - - 0.00% 0.00% - 78.88% 55.00% - 78.88% 55.00% - Full integration Full integration - 571 Consolidated Financial Statements                                                                        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 Percentage of control at 12/31/2015 Percentage of control at 12/31/2014 Type of Direct Indirect Total Direct Indirect Total Relationship Country Activity 96.806.130-5 76.418.940-K Electrogas S.A. GNL Chile S.A. 76.788.080-4 GNL Quintero S.A. Foreign Foreign 76.652.400-1 Sacme S.A. Yacylec S.A. Centrales Hidroeléctricas De Aysén S.A. 76.041.891-9 Aysén Transmisión S.A. 76.091.595-5 Aysén Energía S.A. Foreign Foreign 77.017.930-0 Foreign Foreign Foreign Distribuidora Eléctrica de Cundinamarca S.A. Empresa de Energía de Cundinamarca S.A. Transmisora Eléctrica de Quillota Ltda, Central Termica Manuel Belgrano Central Térmica San Martin Central Vuelta Obligada S.A. U.S. dollar Chilean peso U.S. dollar U.S. dollar Argentine peso Chilean peso Chilean peso Chilean peso 0.00% 42.50% 42.50% 0.00% 42.50% 42.50% 0.00% 33.33% 33.33% 0.00% 33.33% 33.33% 0.00% 20.00% 20.00% 0.00% 20.00% 20.00% 0.00% 22.22% 50.00% 0.00% 50.00% 22.22% 0.00% 50.00% 22.22% 0.00% 50.00% 22.22% Associate Associate Argentina Argentina 0.00% 51.00% 51.00% 0.00% 51.00% 51.00% Joint venture Chile Development and operation of a hydroelectric 0.00% 51.00% 51.00% 0.00% 51.00% 51.00% Joint venture Chile Development and operation of a hydroelectric 0.00% 51.00% 51.00% 0.00% 51.00% 51.00% Joint venture Chile Development and operation of a hydroelectric plant plant plant Associate Associate Chile Chile Promotion of liquefied natural gas supply Portfolio company project Associate Chile Development, design and supply of liquid natural gas regasifying terminal Monitoring and Control of an Electric System Electric energy transportation Colombian peso 0.00% 49.00% 49.00% 0.00% 49.00% 49.00% Joint venture Colombia Electric energy distribution and sales Colombian peso Chilean peso Argentine peso Argentine peso Argentine peso 0.00% 49.00% 49.00% 0.00% 49.00% 49.00% 0.00% 0.00% 0.00% 0.00% 50.00% 25.60% 25.60% 40.90% 50.00% 25.60% 25.60% 40.90% 0.00% 0.00% 0.00% 0.00% 50.00% 25.60% 25.60% 40.90% 50.00% 25.60% 25.60% 40.90% Joint venture Colombia Electric energy distribution and sales Joint venture Chile Electric energy transportation and distribution Associate Associate Associate Argentina Argentina Argentina Electric energy generation and sales Electric energy generation and sales Electric energy generation and sales 572 2015 Annual Report Enersis                         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 Percentage of control at 12/31/2015 Percentage of control at 12/31/2014 Direct Indirect Total Direct Indirect Total Type of Relationship Country Activity 0.00% 42.50% 42.50% 0.00% 42.50% 42.50% 0.00% 33.33% 33.33% 0.00% 33.33% 33.33% 0.00% 20.00% 20.00% 0.00% 20.00% 20.00% Associate Associate Chile Chile Portfolio company Promotion of liquefied natural gas supply Associate Chile Development, design and supply of liquid project 0.00% 22.22% 50.00% 0.00% 50.00% 22.22% 0.00% 50.00% 22.22% 0.00% 50.00% 22.22% Associate Associate Argentina Argentina natural gas regasifying terminal Monitoring and Control of an Electric System Electric energy transportation Centrales Hidroeléctricas De Aysén S.A. 0.00% 51.00% 51.00% 0.00% 51.00% 51.00% Joint venture Chile Development and operation of a hydroelectric plant 0.00% 51.00% 51.00% 0.00% 51.00% 51.00% Joint venture Chile Development and operation of a hydroelectric plant 0.00% 51.00% 51.00% 0.00% 51.00% 51.00% Joint venture Chile Development and operation of a hydroelectric plant Foreign Distribuidora Eléctrica de Cundinamarca Colombian peso 0.00% 49.00% 49.00% 0.00% 49.00% 49.00% Joint venture Colombia Electric energy distribution and sales 0.00% 49.00% 49.00% 0.00% 49.00% 49.00% 0.00% 0.00% 0.00% 0.00% 50.00% 25.60% 25.60% 40.90% 50.00% 25.60% 25.60% 40.90% 0.00% 0.00% 0.00% 0.00% 50.00% 25.60% 25.60% 40.90% 50.00% 25.60% 25.60% 40.90% Joint venture Colombia Electric energy distribution and sales Joint venture Chile Electric energy transportation and distribution Associate Associate Associate Argentina Argentina Argentina Electric energy generation and sales Electric energy generation and sales Electric energy generation and sales 96.806.130-5 76.418.940-K Electrogas S.A. GNL Chile S.A. 76.788.080-4 GNL Quintero S.A. Foreign Foreign 76.652.400-1 Sacme S.A. Yacylec S.A. 76.041.891-9 Aysén Transmisión S.A. 76.091.595-5 Aysén Energía S.A. U.S. dollar Chilean peso U.S. dollar U.S. dollar Argentine peso Chilean peso Chilean peso Chilean peso S.A. S.A. Empresa de Energía de Cundinamarca Transmisora Eléctrica de Quillota Ltda, Central Termica Manuel Belgrano Central Térmica San Martin Central Vuelta Obligada S.A. Colombian peso Chilean peso Argentine peso Argentine peso Argentine peso Foreign 77.017.930-0 Foreign Foreign Foreign 573 Consolidated Financial Statements                        Appendix 4 Supplementary information related to assets and liabilities held for distribution to owners and results from discontinued operations Consolidated Statement of Financial Position as of December 31, 2015 (In thousands of Chilean pesos) ASSETS CURRENT ASSETS Cash and cash equivalents Other current financial assets Other current non-financial assets Trade and other current receivables Current accounts receivable from related companies Inventories Current tax assets Total current assets other than assets or groups of assets for disposal classified as held for sale or as held for distribution to owners TOTAL CURRENT ASSETS 3,437,084,674 (848,991,835) 179,448,975 3,616,533,649 2,767,541,814 848,991,835 NON-CURRENT ASSETS Other non-current financial assets Other non-current non-financial assets Trade and other non-current receivables Non-current accounts receivable from related companies Investments accounted for using the equity method Intangible assets other than goodwill Goodwill Property, plant and equipment Investment property Deferred tax assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS Enersis Discontinued Historical Operations (IFRS 5) Intercompany eliminations and other adjustmentss Enersis Historical (Combined) Enersis América Enersis Chile ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 1,329,425,189 (144,261,845) 1,329,425,189 1,185,163,344 1,684,496,034 (596,364,467) 84,575,640 105,974,000 27,178,499 137,674,512 67,760,800 (16,313,194) (3,984,943) (25,144,559) (42,616,615) (20,306,212) 179,448,975 84,575,640 105,974,000 1,684,496,034 206,627,474 137,674,512 67,760,800 68,262,446 101,989,057 1,088,131,567 181,482,915 95,057,897 47,454,588 3,437,084,674 (848,991,835) 179,448,975 3,616,533,649 2,767,541,814 848,991,835 511,278,656 82,332,593 413,088,087 355,485 76,676,816 1,024,278,598 1,331,456,702 8,432,734,430 8,150,987 131,642,331 (21,750,452) (4,769,885) (14,392,223) - (45,716,371) (42,879,326) (887,257,655) (3,429,167,797) (8,150,987) (22,392,339) 511,278,656 82,332,593 413,088,087 355,485 76,676,816 1,024,278,598 1,331,456,702 8,432,734,430 8,150,987 131,717,362 489,528,204 77,562,708 398,695,864 355,485 30,960,445 981,399,272 444,199,047 - 109,325,023 5,003,566,633 3,429,167,797 12,011,994,685 (4,476,477,035) 75,031 12,012,069,716 7,535,592,681 4,476,477,035 15,449,079,359 (5,325,468,870) 179,524,006 15,628,603,365 10,303,134,495 5,325,468,870 144,261,845 16,313,194 3,984,943 596,364,467 25,144,559 42,616,615 20,306,212 21,750,452 4,769,885 14,392,223 - 45,716,371 42,879,326 887,257,655 8,150,987 22,392,339 - - - - - - - - - - - - - - - 75,031 574 2015 Annual Report Enersis       Appendix 4 Supplementary information related to assets and liabilities held for distribution to owners and results from discontinued operations Total current assets other than assets or groups of assets for disposal classified as held for sale or as held for distribution to owners Consolidated Statement of Financial Position as of December 31, 2015 (In thousands of Chilean pesos) ASSETS CURRENT ASSETS Cash and cash equivalents Other current financial assets Other current non-financial assets Trade and other current receivables Current accounts receivable from related companies Inventories Current tax assets Non-current accounts receivable from related companies Investments accounted for using the equity method TOTAL CURRENT ASSETS NON-CURRENT ASSETS Other non-current financial assets Other non-current non-financial assets Trade and other non-current receivables Intangible assets other than goodwill Goodwill Property, plant and equipment Investment property Deferred tax assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS Enersis Historical Discontinued Operations (IFRS 5) Intercompany eliminations and other adjustmentss Enersis Historical (Combined) Enersis América Enersis Chile ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 1,329,425,189 84,575,640 105,974,000 1,684,496,034 27,178,499 137,674,512 67,760,800 (144,261,845) (16,313,194) (3,984,943) (596,364,467) (25,144,559) (42,616,615) (20,306,212) - - - - 179,448,975 - - 1,329,425,189 84,575,640 105,974,000 1,684,496,034 206,627,474 137,674,512 67,760,800 1,185,163,344 68,262,446 101,989,057 1,088,131,567 181,482,915 95,057,897 47,454,588 144,261,845 16,313,194 3,984,943 596,364,467 25,144,559 42,616,615 20,306,212 3,437,084,674 (848,991,835) 179,448,975 3,616,533,649 2,767,541,814 848,991,835 3,437,084,674 (848,991,835) 179,448,975 3,616,533,649 2,767,541,814 848,991,835 511,278,656 82,332,593 413,088,087 355,485 76,676,816 1,024,278,598 1,331,456,702 8,432,734,430 8,150,987 131,642,331 (21,750,452) (4,769,885) (14,392,223) - (45,716,371) (42,879,326) (887,257,655) (3,429,167,797) (8,150,987) (22,392,339) - - - - - - - - - 75,031 511,278,656 82,332,593 413,088,087 355,485 76,676,816 1,024,278,598 1,331,456,702 8,432,734,430 8,150,987 131,717,362 489,528,204 77,562,708 398,695,864 355,485 30,960,445 981,399,272 444,199,047 5,003,566,633 - 109,325,023 21,750,452 4,769,885 14,392,223 - 45,716,371 42,879,326 887,257,655 3,429,167,797 8,150,987 22,392,339 12,011,994,685 (4,476,477,035) 75,031 12,012,069,716 7,535,592,681 4,476,477,035 15,449,079,359 (5,325,468,870) 179,524,006 15,628,603,365 10,303,134,495 5,325,468,870 575 Consolidated Financial Statements       Enersis Discontinued Historical Operations (IFRS 5) Intercompany eliminations and other adjustmentss Enersis Historical (Combined) Enersis América Enersis Chile ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 715,795,233 2,007,740,178 165,136,438 143,628,371 157,727,749 45,346,997 (27,921,725) (554,915,971) (233,154,916) (16,329,195) (15,119,789) (6,120,658) 179,448,975 715,795,233 2,007,740,178 344,585,413 143,628,371 157,727,749 45,346,997 687,873,508 1,452,824,207 111,430,497 127,299,176 142,607,960 39,226,339 27,921,725 554,915,971 233,154,916 16,329,195 15,119,789 6,120,658 3,235,374,966 (853,562,254) 179,448,975 3,414,823,941 2,561,261,687 853,562,254 3,235,374,966 (853,562,254) 179,448,975 3,414,823,941 2,561,261,687 853,562,254 2,764,494,382 289,578,470 97,186 239,964,424 466,930,940 242,293,930 20,536,681 (917,197,790) (6,034,216) (97,186) (56,116,140) (235,101,356) (55,023,456) (435,689) 2,764,494,382 289,578,470 97,186 239,964,424 467,005,971 242,293,930 20,536,681 1,847,296,592 283,544,254 - 183,848,284 231,904,615 187,270,474 20,100,992 917,197,790 6,034,216 97,186 56,116,140 235,101,356 55,023,456 435,689 75,031 4,023,896,013 (1,270,005,833) 75,031 4,023,971,044 2,753,965,211 1,270,005,833 7,259,270,979 (2,123,568,087) 179,524,006 7,438,794,985 5,315,226,898 2,123,568,087 5,804,447,986 3,380,661,523 (3,158,960,224) (2,229,108,975) (1,322,162,479) 958,589,952 5,804,447,986 3,380,661,523 3,575,339,011 2,058,499,044 (3,158,960,224) (2,200,370,272) 2,229,108,975 1,322,162,479 (958,589,952) 2,163,659,095 (609,219,281) 2,163,659,095 1,554,439,814 609,219,281 8,189,808,380 (3,201,900,783) 8,189,808,380 4,987,907,597 3,201,900,783 15,449,079,359 (5,325,468,870) 179,524,006 15,628,603,365 10,303,134,495 5,325,468,870 - - - - - - - - - - - - - - - - - Consolidated Statement of Financial Position as of December 31, 2015 (In thousands of Chilean pesos) LIABILITIES AND EQUITY CURRENT LIABILITIES Other current financial liabilities Trade and other current payables Current accounts payable to related companies Other current provisions Current tax liabilities Other current non-financial liabilities Liabilities associated with groups of assets for disposal classified as held for sale TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Other non-current financial liabilities Trade and other non-current payables Non-current accounts payable to related companies Other long-term provisions Deferred tax liabilities Non-current provisions for employee benefits Other non-current non-financial liabilities TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES EQUITY Issued capital Retained earnings Other reserves Equity attributable to owners of parent 6,026,149,285 (2,592,681,502) 6,026,149,285 3,433,467,783 2,592,681,502 Non-controlling interests TOTAL EQUITY TOTAL LIABILITIES AND EQUITY 576 2015 Annual Report Enersis       Consolidated Statement of Financial Position as of December 31, 2015 (In thousands of Chilean pesos) LIABILITIES AND EQUITY CURRENT LIABILITIES Other current financial liabilities Trade and other current payables Current accounts payable to related companies Other current provisions Current tax liabilities Other current non-financial liabilities Liabilities associated with groups of assets for disposal classified as held for sale TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Other non-current financial liabilities Trade and other non-current payables Non-current accounts payable to related companies Other long-term provisions Deferred tax liabilities Non-current provisions for employee benefits Other non-current non-financial liabilities TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES EQUITY Issued capital Retained earnings Other reserves Equity attributable to owners of parent Non-controlling interests TOTAL EQUITY TOTAL LIABILITIES AND EQUITY Enersis Historical Discontinued Operations (IFRS 5) Intercompany eliminations and other adjustmentss Enersis Historical (Combined) Enersis América Enersis Chile ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 715,795,233 2,007,740,178 165,136,438 143,628,371 157,727,749 45,346,997 (27,921,725) (554,915,971) (233,154,916) (16,329,195) (15,119,789) (6,120,658) - - 179,448,975 - - - 715,795,233 2,007,740,178 344,585,413 143,628,371 157,727,749 45,346,997 687,873,508 1,452,824,207 111,430,497 127,299,176 142,607,960 39,226,339 27,921,725 554,915,971 233,154,916 16,329,195 15,119,789 6,120,658 3,235,374,966 (853,562,254) 179,448,975 3,414,823,941 2,561,261,687 853,562,254 3,235,374,966 (853,562,254) 179,448,975 3,414,823,941 2,561,261,687 853,562,254 2,764,494,382 289,578,470 97,186 239,964,424 466,930,940 242,293,930 20,536,681 (917,197,790) (6,034,216) (97,186) (56,116,140) (235,101,356) (55,023,456) (435,689) - - - - 75,031 - - 2,764,494,382 289,578,470 97,186 239,964,424 467,005,971 242,293,930 20,536,681 1,847,296,592 283,544,254 - 183,848,284 231,904,615 187,270,474 20,100,992 917,197,790 6,034,216 97,186 56,116,140 235,101,356 55,023,456 435,689 4,023,896,013 (1,270,005,833) 75,031 4,023,971,044 2,753,965,211 1,270,005,833 7,259,270,979 (2,123,568,087) 179,524,006 7,438,794,985 5,315,226,898 2,123,568,087 5,804,447,986 3,380,661,523 (3,158,960,224) (2,229,108,975) (1,322,162,479) 958,589,952 6,026,149,285 (2,592,681,502) 2,163,659,095 (609,219,281) 8,189,808,380 (3,201,900,783) - - - - - - 5,804,447,986 3,380,661,523 (3,158,960,224) 3,575,339,011 2,058,499,044 (2,200,370,272) 2,229,108,975 1,322,162,479 (958,589,952) 6,026,149,285 3,433,467,783 2,592,681,502 2,163,659,095 1,554,439,814 609,219,281 8,189,808,380 4,987,907,597 3,201,900,783 15,449,079,359 (5,325,468,870) 179,524,006 15,628,603,365 10,303,134,495 5,325,468,870 577 Consolidated Financial Statements      Consolidated Statement of Income, by Nature For the year ended December 31, 2015 (In thousands of Chilean pesos) CONSOLIDATED STATEMENT OF INCOME Profit (loss) Revenues Other income Revenues and other operating income Raw materials and consumables used Contribution Margin Other work performed by the entity and capitalized Employee benefits expense Depreciation and amortization expense Impairment loss recognized in the period’s profit or loss Other expenses Operating income Other gains (losses) Financial income Financial costs Share of profit (loss) of associates and joint ventures accounted for using the equity method Foreign currency exchange differences Profit (loss) from indexed assets and liabilities Income before taxes Income tax expense Net income from continuing operations Profit (loss) from discontinued operations NET INCOME Net income attributable to: Equity owners of parent Non-controlling interests NET INCOME Basic earnings per share Basic earnings per share from continuing operations Basic earnings per share Weighted average number of shares of common stock Diluted earnings per share Diluted earnings per share from continuing operations Diluted earnings per share Weighted average number of shares of common stock Enersis Discontinued Historical Operations (IFRS 5) Intercompany eliminations and other adjustmentss Enersis Historical (Combined) Enersis América Enersis Chile ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 7,050,316,326 (2,382,671,016) 648,530,219 (14,735,951) 7,698,846,545 (2,397,406,967) 1,622,173 7,616 1,629,789 7,051,938,499 648,537,835 7,700,476,334 4,667,645,310 633,801,884 5,301,447,194 2,384,293,189 14,735,951 2,399,029,140 (4,259,187,071) 3,439,659,474 1,481,985,559 (915,421,408) 1,629,789 (4,259,187,071) 3,441,289,263 (2,777,201,512) 2,524,245,682 (1,481,985,559) 917,043,581 1,778,632,686 (523,874,200) 1,778,632,686 1,253,143,929 88,105,322 (624,252,868) (473,743,859) (36,756,853) (614,378,530) 13,489,520 310,040,441 (447,071,689) 12,238,016 114,843,285 (4,426,963) 1,777,745,296 (633,275,811) 1,144,469,485 - (21,004,053) 136,554,721 153,201,662 (3,054,903) 125,849,781 (20,055,745) (15,270,169) 61,616,349 (8,905,045) 13,394,762 (4,839,077) (497,933,125) 109,612,599 (388,320,526) - (1,629,789) 5,084,349 (5,084,349) 88,105,322 (624,252,868) (473,743,859) (36,756,853) (616,008,319) 13,489,520 315,124,790 12,238,016 114,843,285 (4,426,963) 1,777,745,296 (633,275,811) 1,144,469,485 - 67,101,269 (487,698,147) (320,542,197) (39,811,756) (490,150,922) (6,566,225) 299,854,621 3,332,971 166,120,617 (9,266,040) 1,321,164,533 (523,663,212) 797,501,321 - (452,156,038) (385,455,340) 21,004,053 (136,554,721) (153,201,662) 3,054,903 (125,857,397) 525,488,757 20,055,745 15,270,169 (66,700,698) 8,905,045 (51,277,332) 4,839,077 456,580,763 (109,612,599) 346,968,164 - 1,144,469,485 (388,320,526) 1,144,469,485 797,501,321 346,968,164 661,586,917 482,882,568 1,144,469,485 (293,190,772) (95,129,754) (388,320,526) 661,586,917 482,882,568 1,144,469,485 409,748,507 387,752,814 797,501,321 251,838,410 95,129,754 346,968,164 49,092,772.76 49,092,772.76 49,092,772.76 49,092,772.76 13.48 13.48 13.48 13.48 (5.97) (5.97) (5.97) (5.97) 13.48 13.48 - 13.48 13.48 - 8.35 8.35 8.35 8.35 5.13 5.13 5.13 5.13 49,092,772.76 49,092,772.76 49,092,772.76 49,092,772.76 - - - - - - - - - - - - - - - - - - - - - - - - 578 2015 Annual Report Enersis       Consolidated Statement of Income, by Nature For the year ended December 31, 2015 (In thousands of Chilean pesos) CONSOLIDATED STATEMENT OF INCOME Profit (loss) Revenues Other income Revenues and other operating income Raw materials and consumables used Contribution Margin Other work performed by the entity and capitalized Employee benefits expense Depreciation and amortization expense Impairment loss recognized in the period’s profit or loss Other expenses Operating income Other gains (losses) Financial income Financial costs Foreign currency exchange differences Profit (loss) from indexed assets and liabilities Income before taxes Income tax expense Net income from continuing operations Profit (loss) from discontinued operations NET INCOME Net income attributable to: Equity owners of parent Non-controlling interests NET INCOME Basic earnings per share Basic earnings per share Basic earnings per share from continuing operations Weighted average number of shares of common stock Diluted earnings per share Diluted earnings per share from continuing operations Diluted earnings per share Weighted average number of shares of common stock Share of profit (loss) of associates and joint ventures accounted for using the equity method Enersis Historical Discontinued Operations (IFRS 5) Intercompany eliminations and other adjustmentss Enersis Historical (Combined) Enersis América Enersis Chile ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 7,050,316,326 648,530,219 7,698,846,545 (2,382,671,016) (14,735,951) (2,397,406,967) 1,622,173 7,616 1,629,789 7,051,938,499 648,537,835 7,700,476,334 4,667,645,310 633,801,884 5,301,447,194 2,384,293,189 14,735,951 2,399,029,140 (4,259,187,071) 3,439,659,474 1,481,985,559 (915,421,408) - 1,629,789 (4,259,187,071) 3,441,289,263 (2,777,201,512) 2,524,245,682 (1,481,985,559) 917,043,581 88,105,322 (624,252,868) (473,743,859) (36,756,853) (614,378,530) 1,778,632,686 13,489,520 310,040,441 (447,071,689) 12,238,016 114,843,285 (4,426,963) 1,777,745,296 (633,275,811) 1,144,469,485 - 1,144,469,485 (21,004,053) 136,554,721 153,201,662 (3,054,903) 125,849,781 (523,874,200) (20,055,745) (15,270,169) 61,616,349 (8,905,045) 13,394,762 (4,839,077) (497,933,125) 109,612,599 (388,320,526) - (388,320,526) 661,586,917 482,882,568 1,144,469,485 (293,190,772) (95,129,754) (388,320,526) 13.48 13.48 49,092,772.76 (5.97) (5.97) 49,092,772.76 13.48 13.48 49,092,772.76 (5.97) (5.97) 49,092,772.76 - - - - (1,629,789) - - 5,084,349 (5,084,349) - - - - - - - - - - - - - - - - - 88,105,322 (624,252,868) (473,743,859) (36,756,853) (616,008,319) 1,778,632,686 13,489,520 315,124,790 (452,156,038) 12,238,016 114,843,285 (4,426,963) 1,777,745,296 (633,275,811) 1,144,469,485 - 1,144,469,485 67,101,269 (487,698,147) (320,542,197) (39,811,756) (490,150,922) 1,253,143,929 (6,566,225) 299,854,621 (385,455,340) 3,332,971 166,120,617 (9,266,040) 1,321,164,533 (523,663,212) 797,501,321 - 797,501,321 21,004,053 (136,554,721) (153,201,662) 3,054,903 (125,857,397) 525,488,757 20,055,745 15,270,169 (66,700,698) 8,905,045 (51,277,332) 4,839,077 456,580,763 (109,612,599) 346,968,164 - 346,968,164 661,586,917 482,882,568 1,144,469,485 409,748,507 387,752,814 797,501,321 251,838,410 95,129,754 346,968,164 13.48 13.48 - 13.48 13.48 - 8.35 8.35 49,092,772.76 5.13 5.13 49,092,772.76 8.35 8.35 49,092,772.76 5.13 5.13 49,092,772.76 579 Consolidated Financial Statements      Consolidated Statement of Financial Position as of December 31, 2014 (In thousands of Chilean pesos) ASSETS CURRENT ASSETS Cash and cash equivalents Other current financial assets Other current non-financial assets Trade and other current receivables Current accounts receivable from related companies Inventories Current tax assets Total current assets other than assets or groups of assets for disposal classified as held for sale or as held for distribution to owners Non-current current assets or groups of assets for disposal classified as held for sale or as held for distribution to owners Non-current current assets or groups of assets for disposal classified as held for sale or as held for distribution to owners TOTAL CURRENT ASSETS NON-CURRENT ASSETS Other non-current financial assets Other non-current non-financial assets Trade and other non-current receivables Non-current accounts receivable from related companies Investments accounted for using the equity method Intangible assets other than goodwill Goodwill Property, plant and equipment Investment property Deferred tax assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS Enersis Discontinued Historical Operations (IFRS 5) Intercompany eliminations and other adjustmentss Enersis Historical (Combined) Enersis América Enersis Chile ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 3,931,498,888 121,396,548 4,052,895,436 3,210,031,938 842,863,498 1,704,745,491 99,455,403 175,098,112 1,681,686,903 18,441,340 133,520,154 110,572,522 3,923,519,925 7,978,963 7,978,963 530,821,520 77,806,180 291,641,675 486,605 73,633,610 1,168,212,056 1,410,853,627 8,234,215,719 8,514,562 193,637,874 11,989,823,428 15,921,322,316 - - - - - - - - - - - - - - - - - 121,396,548 1,704,745,491 1,571,759,564 99,455,403 175,098,112 1,681,686,903 139,837,888 133,520,154 110,572,522 97,964,274 159,050,505 1,103,605,698 122,885,238 89,842,276 64,924,383 132,985,927 1,491,129 16,047,607 578,081,205 16,952,650 43,677,878 45,648,139 121,396,548 4,044,916,473 3,210,031,938 834,884,535 7,978,963 7,978,963 - - 7,978,963 7,978,963 530,821,520 77,806,180 291,641,675 486,605 73,633,610 1,168,212,056 1,410,853,627 8,234,215,719 8,514,562 193,704,492 524,071,048 77,570,750 284,145,263 486,605 33,268,287 1,131,686,534 523,595,972 4,950,454,943 - 180,739,397 6,750,472 235,430 7,496,412 - 40,365,323 36,525,522 887,257,655 3,283,760,776 8,514,562 12,965,095 66,618 66,618 11,989,890,046 7,706,018,799 4,283,871,247 121,463,166 16,042,785,482 10,916,050,737 5,126,734,745 580 2015 Annual Report Enersis       Total current assets other than assets or groups of assets for disposal classified as held for sale or as held for distribution to owners Non-current current assets or groups of assets for disposal classified as held for sale or as held for distribution to owners Non-current current assets or groups of assets for disposal classified as held for sale or as held for distribution to owners Consolidated Statement of Financial Position as of December 31, 2014 (In thousands of Chilean pesos) ASSETS CURRENT ASSETS Cash and cash equivalents Other current financial assets Other current non-financial assets Trade and other current receivables Current accounts receivable from related companies Inventories Current tax assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Other non-current financial assets Other non-current non-financial assets Trade and other non-current receivables Non-current accounts receivable from related companies Investments accounted for using the equity method Intangible assets other than goodwill Goodwill Property, plant and equipment Investment property Deferred tax assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS Enersis Historical Discontinued Operations (IFRS 5) Intercompany eliminations and other adjustmentss Enersis Historical (Combined) Enersis América Enersis Chile ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 1,704,745,491 99,455,403 175,098,112 1,681,686,903 18,441,340 133,520,154 110,572,522 3,923,519,925 7,978,963 7,978,963 - - - - 121,396,548 - - 121,396,548 1,704,745,491 99,455,403 175,098,112 1,681,686,903 139,837,888 133,520,154 110,572,522 4,044,916,473 1,571,759,564 97,964,274 159,050,505 1,103,605,698 122,885,238 89,842,276 64,924,383 3,210,031,938 - - 7,978,963 7,978,963 - - 132,985,927 1,491,129 16,047,607 578,081,205 16,952,650 43,677,878 45,648,139 834,884,535 7,978,963 7,978,963 3,931,498,888 121,396,548 4,052,895,436 3,210,031,938 842,863,498 530,821,520 77,806,180 291,641,675 486,605 73,633,610 1,168,212,056 1,410,853,627 8,234,215,719 8,514,562 193,637,874 11,989,823,428 15,921,322,316 - - - - - - - - - 66,618 530,821,520 77,806,180 291,641,675 486,605 73,633,610 1,168,212,056 1,410,853,627 8,234,215,719 8,514,562 193,704,492 524,071,048 77,570,750 284,145,263 486,605 33,268,287 1,131,686,534 523,595,972 4,950,454,943 - 180,739,397 6,750,472 235,430 7,496,412 - 40,365,323 36,525,522 887,257,655 3,283,760,776 8,514,562 12,965,095 66,618 11,989,890,046 7,706,018,799 4,283,871,247 121,463,166 16,042,785,482 10,916,050,737 5,126,734,745 581 Consolidated Financial Statements       Enersis Discontinued Historical Operations (IFRS 5) Intercompany eliminations and other adjustmentss Enersis Historical (Combined) Enersis América Enersis Chile ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 421,805,679 2,288,876,950 143,680,622 90,222,684 115,472,313 129,275,589 3,189,333,837 5,488,147 3,194,821,984 3,289,097,528 159,385,521 - 197,243,841 478,361,484 269,930,412 53,262,800 4,447,281,586 7,642,103,570 5,804,447,986 3,051,734,445 (2,654,206,384) 6,201,976,047 2,077,242,699 8,279,218,746 121,396,548 421,805,679 2,288,876,950 265,077,170 90,222,684 115,472,313 129,275,589 275,441,320 1,793,515,595 77,891,977 78,599,170 77,114,447 93,572,328 146,364,359 495,361,355 187,185,193 11,623,514 38,357,866 35,703,261 121,396,548 3,310,730,385 2,396,134,837 914,595,548 121,396,548 3,316,218,532 2,396,134,837 920,083,695 3,289,097,528 159,385,521 - 197,243,841 478,428,102 269,930,412 53,262,800 2,510,962,361 155,674,443 - 169,273,906 223,205,436 215,992,570 49,654,229 778,135,167 3,711,078 - 27,969,935 255,222,666 53,937,842 3,608,571 66,618 66,618 4,447,348,204 3,324,762,945 1,122,585,259 121,463,166 7,763,566,736 5,720,897,782 2,042,668,954 5,804,447,986 3,051,734,445 (2,654,206,384) 6,201,976,047 3,575,339,011 1,879,762,768 (1,725,327,166) 3,729,774,613 2,229,108,975 1,171,971,677 (928,879,218) 2,472,201,434 2,077,242,699 1,465,378,342 611,864,357 8,279,218,746 5,195,152,955 3,084,065,791 - - - - - - - - - - - - - - - - - - 15,921,322,316 121,463,166 16,042,785,482 10,916,050,737 5,126,734,745 Consolidated Statement of Financial Position as of December 31, 2014 (In thousands of Chilean pesos) LIABILITIES AND EQUITY CURRENT LIABILITIES Other current financial liabilities Trade and other current payables Current accounts payable to related companies Other current provisions Current tax liabilities Other current non-financial liabilities Total current liabilities other than those associated with groups of assets for disposal classified as held for sale Liabilities associated with groups of assets for disposal classified as held for sale 5,488,147 - 5,488,147 TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Other non-current financial liabilities Trade and other non-current payables Non-current accounts payable to related companies Other long-term provisions Deferred tax liabilities Non-current provisions for employee benefits Other non-current non-financial liabilities TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES EQUITY Issued capital Retained earnings Other reserves Equity attributable to owners of parent Non-controlling interests TOTAL EQUITY TOTAL LIABILITIES AND EQUITY 582 2015 Annual Report Enersis       Total current liabilities other than those associated with groups of assets for disposal classified as held for sale Liabilities associated with groups of assets for disposal classified as held for sale Consolidated Statement of Financial Position as of December 31, 2014 (In thousands of Chilean pesos) LIABILITIES AND EQUITY CURRENT LIABILITIES Other current financial liabilities Trade and other current payables Current accounts payable to related companies Other current provisions Current tax liabilities Other current non-financial liabilities TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Other non-current financial liabilities Trade and other non-current payables Non-current accounts payable to related companies Other long-term provisions Deferred tax liabilities Non-current provisions for employee benefits Other non-current non-financial liabilities TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES EQUITY Issued capital Retained earnings Other reserves Equity attributable to owners of parent Non-controlling interests TOTAL EQUITY TOTAL LIABILITIES AND EQUITY Enersis Historical Discontinued Operations (IFRS 5) Intercompany eliminations and other adjustmentss Enersis Historical (Combined) Enersis América Enersis Chile ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 421,805,679 2,288,876,950 143,680,622 90,222,684 115,472,313 129,275,589 3,189,333,837 5,488,147 3,194,821,984 3,289,097,528 159,385,521 - 197,243,841 478,361,484 269,930,412 53,262,800 4,447,281,586 7,642,103,570 5,804,447,986 3,051,734,445 (2,654,206,384) 6,201,976,047 2,077,242,699 8,279,218,746 - - 121,396,548 - - - 121,396,548 421,805,679 2,288,876,950 265,077,170 90,222,684 115,472,313 129,275,589 3,310,730,385 275,441,320 1,793,515,595 77,891,977 78,599,170 77,114,447 93,572,328 2,396,134,837 146,364,359 495,361,355 187,185,193 11,623,514 38,357,866 35,703,261 914,595,548 - 5,488,147 - 5,488,147 121,396,548 3,316,218,532 2,396,134,837 920,083,695 - - - - 66,618 - - 3,289,097,528 159,385,521 - 197,243,841 478,428,102 269,930,412 53,262,800 2,510,962,361 155,674,443 - 169,273,906 223,205,436 215,992,570 49,654,229 778,135,167 3,711,078 - 27,969,935 255,222,666 53,937,842 3,608,571 66,618 4,447,348,204 3,324,762,945 1,122,585,259 121,463,166 7,763,566,736 5,720,897,782 2,042,668,954 - - - - - - 5,804,447,986 3,051,734,445 (2,654,206,384) 6,201,976,047 3,575,339,011 1,879,762,768 (1,725,327,166) 3,729,774,613 2,229,108,975 1,171,971,677 (928,879,218) 2,472,201,434 2,077,242,699 1,465,378,342 611,864,357 8,279,218,746 5,195,152,955 3,084,065,791 15,921,322,316 121,463,166 16,042,785,482 10,916,050,737 5,126,734,745 583 Consolidated Financial Statements      Consolidated Statement of Income, by Nature For the year ended December 31, 2014 (In thousands of Chilean pesos) CONSOLIDATED STATEMENT OF INCOME Profit (loss) Revenues Other income Revenues and other operating income Raw materials and consumables used Contribution Margin Other work performed by the entity and capitalized Employee benefits expense Depreciation and amortization expense Impairment loss recognized in the period’s profit or loss Other expenses Operating income Other gains (losses) Financial income Financial costs Share of profit (loss) of associates and joint ventures accounted for using the equity method Foreign currency exchange differences Profit (loss) from indexed assets and liabilities Income before taxes Income tax expense Net income from continuing operations Profit (loss) from discontinued operations NET INCOME Net income attributable to: Equity owners of parent Non-controlling interests NET INCOME Basic earnings per share Basic earnings per share from continuing operations Basic earnings per share Weighted average number of shares of common stock Diluted earnings per share Diluted earnings per share from continuing operations Diluted earnings per share Weighted average number of shares of common stock Enersis Discontinued Historical Operations (IFRS 5) Intercompany eliminations and other adjustmentss Enersis Historical (Combined) Enersis América Enersis Chile ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 6,819,760,882 (2,013,305,145) 434,115,438 (34,201,387) 7,253,876,320 (2,047,506,532) 1,681,200 10,419 1,691,619 6,821,442,082 434,125,857 7,255,567,939 4,806,578,184 399,924,470 5,206,502,654 2,014,863,898 34,201,387 2,049,065,285 (3,941,071,719) 3,312,804,601 1,309,402,283 (738,104,249) (3,941,071,719) (2,631,669,436) (1,309,402,283) 1,691,619 3,314,496,220 2,574,833,218 739,663,002 1,633,555 (15,263,623) 77,275,986 (516,009,836) (479,179,904) (51,515,362) (574,050,613) 71,769,817 265,884,277 (491,858,285) (51,853,287) (38,821,872) 1,526,079,077 (496,609,349) 1,029,469,728 - - 12.43 12.43 12.43 12.43 (21,505,568) 126,341,363 128,437,154 13,185,420 110,321,349 (70,893,263) (14,762,515) 59,543,956 54,413,310 20,328,278 (347,958,388) 66,017,317 (281,941,071) - (4.50) (4.50) (4.50) (4.50) 1,769,324,872 (381,324,531) 1,769,324,872 1,386,574,454 382,750,418 77,275,986 55,770,418 21,505,568 (516,009,836) (479,179,904) (51,515,362) (575,742,232) (389,668,473) (350,742,750) (38,329,942) (465,288,017) (126,341,363) (128,437,154) (13,185,420) (110,454,215) (1,691,619) 16,082,533 (16,082,533) 71,769,817 281,966,810 (507,940,818) (51,853,287) (38,821,872) 1,633,555 1,526,079,077 (496,609,349) 1,029,469,728 - 876,554 267,204,295 (432,314,329) 2,560,023 (17,377,674) (13,630,068) 1,193,893,255 (430,592,032) 763,301,223 - 1,029,469,728 (281,941,071) 1,029,469,728 763,301,223 266,168,505 610,157,869 419,311,859 1,029,469,728 (221,149,361) (60,791,710) (281,941,071) 610,157,869 419,311,859 1,029,469,728 404,781,074 358,520,149 763,301,223 49,092,772.76 49,092,772.76 49,092,772.76 49,092,772.76 49,092,772.76 49,092,772.76 49,092,772.76 49,092,772.76 13.49 13.49 - 13.49 13.49 - 8.25 8.25 8.25 8.25 70,893,263 14,762,515 (75,626,489) (54,413,310) (21,444,198) 15,263,623 332,185,822 (66,017,317) 266,168,505 - 205,376,795 60,791,710 266,168,505 0.00 4.18 4.18 4.18 4.18 - - - - - - - - - - - - - - - - - - - - - - - - 584 2015 Annual Report Enersis       Consolidated Statement of Income, by Nature For the year ended December 31, 2014 (In thousands of Chilean pesos) CONSOLIDATED STATEMENT OF INCOME Profit (loss) Revenues Other income Revenues and other operating income Raw materials and consumables used Contribution Margin Other work performed by the entity and capitalized Employee benefits expense Depreciation and amortization expense Impairment loss recognized in the period’s profit or loss Other expenses Operating income Other gains (losses) Financial income Financial costs Foreign currency exchange differences Profit (loss) from indexed assets and liabilities Income before taxes Income tax expense Net income from continuing operations Profit (loss) from discontinued operations NET INCOME Net income attributable to: Equity owners of parent Non-controlling interests NET INCOME Basic earnings per share Basic earnings per share from continuing operations Basic earnings per share Weighted average number of shares of common stock Diluted earnings per share Diluted earnings per share from continuing operations Diluted earnings per share Weighted average number of shares of common stock Share of profit (loss) of associates and joint ventures accounted for using the equity method Enersis Historical Discontinued Operations (IFRS 5) Intercompany eliminations and other adjustmentss Enersis Historical (Combined) Enersis América Enersis Chile ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 6,819,760,882 434,115,438 7,253,876,320 (2,013,305,145) (34,201,387) (2,047,506,532) 1,681,200 10,419 1,691,619 6,821,442,082 434,125,857 7,255,567,939 4,806,578,184 399,924,470 5,206,502,654 2,014,863,898 34,201,387 2,049,065,285 (3,941,071,719) 3,312,804,601 1,309,402,283 (738,104,249) - 1,691,619 (3,941,071,719) 3,314,496,220 (2,631,669,436) 2,574,833,218 (1,309,402,283) 739,663,002 77,275,986 (516,009,836) (479,179,904) (51,515,362) (574,050,613) 1,769,324,872 71,769,817 265,884,277 (491,858,285) (51,853,287) (38,821,872) 1,633,555 1,526,079,077 (496,609,349) 1,029,469,728 - 1,029,469,728 610,157,869 419,311,859 1,029,469,728 - (21,505,568) 126,341,363 128,437,154 13,185,420 110,321,349 (381,324,531) (70,893,263) (14,762,515) 59,543,956 54,413,310 20,328,278 (15,263,623) (347,958,388) 66,017,317 (281,941,071) - (281,941,071) (221,149,361) (60,791,710) (281,941,071) 12.43 12.43 49,092,772.76 (4.50) (4.50) 49,092,772.76 12.43 12.43 49,092,772.76 (4.50) (4.50) 49,092,772.76 - - - - (1,691,619) - - 16,082,533 (16,082,533) - - - - - - - - - - - - - - - - - 77,275,986 (516,009,836) (479,179,904) (51,515,362) (575,742,232) 1,769,324,872 71,769,817 281,966,810 (507,940,818) (51,853,287) (38,821,872) 1,633,555 1,526,079,077 (496,609,349) 1,029,469,728 - 1,029,469,728 610,157,869 419,311,859 1,029,469,728 55,770,418 (389,668,473) (350,742,750) (38,329,942) (465,288,017) 1,386,574,454 876,554 267,204,295 (432,314,329) 2,560,023 (17,377,674) (13,630,068) 1,193,893,255 (430,592,032) 763,301,223 - 763,301,223 404,781,074 358,520,149 763,301,223 21,505,568 (126,341,363) (128,437,154) (13,185,420) (110,454,215) 382,750,418 70,893,263 14,762,515 (75,626,489) (54,413,310) (21,444,198) 15,263,623 332,185,822 (66,017,317) 266,168,505 - 266,168,505 205,376,795 60,791,710 266,168,505 0.00 13.49 13.49 - 13.49 13.49 - 8.25 8.25 49,092,772.76 4.18 4.18 49,092,772.76 8.25 8.25 49,092,772.76 4.18 4.18 49,092,772.76 585 Consolidated Financial Statements      Appendix 5 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 Current Maturity Non-current Maturity Current Maturity Non-current Maturity Country Currency Nominal Interest One to three months Three to twelve months Total Current at 12-31-2015 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 Chile Peru Peru US$ Ch$ US$ 5.98% 0.00% - - - - - - - - - - - - 2.40% 26,707,131 3,241,137 29,948,268 4,229,306 19,295,795 299,648 Sol 5.20% 12,864,568 1,001,767 13,866,335 3,285,202 23,309,058 Argentina US$ 13.13% 3,901,216 - 3,901,216 - Argentina Ar$ 37.06% 2,290,653 6,194,569 8,485,222 1,162,844 - - - - - - - - - - - - - - - - - Colombia CP 14.53% 35,832,030 84,128,905 119,960,935 43,831,876 12,832,869 12,194,900 11,556,930 30,842,974 111,259,549 1,401,291 4,203,875 5,605,166 10,766,379 15,367,075 14,619,719 13,872,363 48,015,897 102,641,433 Brazil Real 6.46% 12,842,515 24,480,763 37,323,278 42,171,314 37,904,161 33,637,009 - - 113,712,484 1,856,705 5,570,115 7,426,820 7,426,820 27,647,361 25,171,755 22,696,148 82,942,084 94,438,113 119,047,141 213,485,254 94,680,542 93,341,883 46,131,557 11,556,930 30,842,974 276,553,886 17,616,391 45,859,907 63,476,298 68,780,986 65,194,217 78,955,951 36,824,905 48,015,897 297,771,956 586 2015 Annual Report Enersis at 12-31- One to two Two to three Three to Four to five Over five years four years ThCh$ ThCh$ years ThCh$ years ThCh$ Total No Three to Total Current Current at One to three 12-31-2015 months ThCh$ - - ThCh$ 20,269 714 twelve months ThCh$ 2014 ThCh$ 1,020,576 1,040,845 - 714 years ThCh$ - - 23,824,749 2,914,574 9,996,364 12,910,938 40,274,383 18,781,256 16,391,794 256,394 26,594,260 326,274 978,819 1,305,093 1,305,094 3,209,741 22,772,683 - 2,808,939 12,054,341 14,863,280 1,039,398 1,162,844 8,287,625 12,035,817 20,323,442 7,968,912 188,784 - - - - - - - - - - - - Total Non- current at 12-31-2014 ThCh$ - - 75,703,827 27,287,518 1,039,398 8,157,696 - - - - - - -                                                 Appendix 5 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 One to three months Three to twelve months Total Current at One to two Two to Three to Four to Over five 12-31-2015 years three years four years five years ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Chile Chile Peru Peru US$ Ch$ US$ 5.98% 0.00% - - - - - - - - - - - - - - - - - - years ThCh$ - - - - - - - - - - - - - - Current Maturity Non-current Maturity Current Maturity Non-current Maturity Total No Current at 12-31-2015 ThCh$ - - ThCh$ 20,269 714 One to three months Three to twelve months Total Current at 12-31- 2014 One to two years Two to three years Three to four years Four to five years Over five years Total Non- current at 12-31-2014 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 1,020,576 1,040,845 - 714 - - - - - - - - - - - - - - - - 75,703,827 27,287,518 1,039,398 8,157,696 2.40% 26,707,131 3,241,137 29,948,268 4,229,306 19,295,795 299,648 23,824,749 2,914,574 9,996,364 12,910,938 40,274,383 18,781,256 16,391,794 256,394 Sol 5.20% 12,864,568 1,001,767 13,866,335 3,285,202 23,309,058 26,594,260 326,274 978,819 1,305,093 1,305,094 3,209,741 22,772,683 Argentina US$ 13.13% 3,901,216 - 3,901,216 - 2,808,939 12,054,341 14,863,280 1,039,398 - Argentina Ar$ 37.06% 2,290,653 6,194,569 8,485,222 1,162,844 1,162,844 8,287,625 12,035,817 20,323,442 7,968,912 188,784 - - - - - Colombia CP 14.53% 35,832,030 84,128,905 119,960,935 43,831,876 12,832,869 12,194,900 11,556,930 30,842,974 111,259,549 1,401,291 4,203,875 5,605,166 10,766,379 15,367,075 14,619,719 13,872,363 48,015,897 102,641,433 Brazil Real 6.46% 12,842,515 24,480,763 37,323,278 42,171,314 37,904,161 33,637,009 113,712,484 1,856,705 5,570,115 7,426,820 7,426,820 27,647,361 25,171,755 22,696,148 - 82,942,084 94,438,113 119,047,141 213,485,254 94,680,542 93,341,883 46,131,557 11,556,930 30,842,974 276,553,886 17,616,391 45,859,907 63,476,298 68,780,986 65,194,217 78,955,951 36,824,905 48,015,897 297,771,956 587 Consolidated Financial Statements                                                Identification of bank borrowings by company 12-31-2015 Tax ID Number Company Country Financial Institution Currency Effective interest rate Nominal interest rate Current Non-current Non-current Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Ampla Energía S.A. CGTF S.A. Chinango S.A.C. Chinango S.A.C. Chinango S.A.C. Chinango S.A.C. Codensa Coelce S.A. Coelce S.A. Coelce S.A. Edegel S.A.A Edegel S.A.A Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edesur S.A. Edesur S.A. Edesur S.A. Edesur S.A. Edesur S.A. Edesur S.A. Emgesa S.A. E.S.P. Emgesa S.A. E.S.P. Emgesa S.A. E.S.P. Emgesa S.A. E.S.P. Emgesa S.A. E.S.P. Emgesa S.A. E.S.P. Emgesa S.A. E.S.P. Emgesa S.A. E.S.P. Emgesa S.A. E.S.P. Emgesa S.A. E.S.P. Emgesa S.A. E.S.P. Emgesa S.A. E.S.P. Brasil Brasil Peru Peru Peru Peru Banco do Brasil IFC - C Banco Scotiabank Banco de Credito del Peru Bank Of Nova Scotia Bank Of Nova Scotia Colombia Citibank Colombia Brasil Brasil Brasil Peru Peru Peru Peru Peru Peru Peru Peru Peru Banco Itaú Brasil Banco do Brasil Banco Santander Banco Continental Bank Nova Scotia Banco de Interbank Banco de Interbank Banco Continental Banco Continental Banco Continental Banco Continental Banco de Interbank Argentina Banco Ciudad de Buenos Aires Argentina Banco Provincia de Buenos Aires Argentina Banco Itaú Argentina Argentina Banco Santander Río Argentina Banco Santander Río Argentina ICBC Argentina Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Banco Corpbanca BBVA Colombia Banco de Bogota AV VILLAS Citibank Colombia BBVA Colombia Banco de Bogota Banco de Crédito del Peru Banco de Crédito del Peru Banco de Crédito del Peru The Bank Of Tokyo Banco Davivienda Endesa Argentina S.A. Argentina Citibank 91.081.000-6 91.081.000-6 Endesa Chile S.A. Endesa Chile S.A. Chile Chile B.N.P. Paribas Banco Santander Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Central Costanera S.A. Argentina Banco Galicia Central Costanera S.A. Argentina Banco Itaú Argentina Central Costanera S.A. Argentina Banco Santander Río Central Costanera S.A. Argentina Banco Supervielle Central Costanera S.A. Argentina Citibank Central Costanera S.A. Argentina Credit Suisse International Central Costanera S.A. Argentina ICBC Argentina H. El Chocón S.A. Argentina Deutsche Bank Real US$ US$ US$ US$ US$ $ Col Real Real Real US$ US$ Soles Soles Soles Soles Soles Soles Soles $ Arg $ Arg $ Arg $ Arg $ Arg $ Arg $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Arg US$ Ch$ $ Arg $ Arg $ Arg $ Arg $ Arg US$ $ Arg US$ 13.58% 12.18% 3.98% 2.17% 3.25% 3.48% 4.40% 14.39% 13.72% 13.80% 3.44% 1.08% 6.90% 5.83% 5.10% 5.10% 5.10% 5.10% 4.67% 34.64% 35.36% 38.20% 29.74% 45.20% 34.06% 8.39% 8.27% 8.30% 6.06% 5.57% 6.30% 6.84% 5.87% 5.93% 5.65% 7.02% 6.30% 13.71% 12.32% 3.96% 2.06% 3.07% 3.40% 4.32% 14.68% 13.97% 15.76% 3.36% 1.06% 6.73% 5.71% 5.01% 5.01% 5.01% 5.01% 30.07% 30.67% 32.79% 26.91% 37.88% 29.50% 8.22% 8.11% 8.14% 5.93% 6.01% 6.16% 6.66% 5.70% 5.76% 5.50% 6.90% 6.15% 4.59% 12,530,646 9,174,424 - 25,613,578 35,470 63,633 39,574 65,973 63,317 65,955 - 85,423 - - - - 894,845 301,348 11,145,579 5,233,163 - - - 9,174,424 - 25,613,578 106,410 190,899 118,722 197,919 189,952 197,865 - - - - - 141,880 254,532 158,296 263,892 253,269 263,820 12,530,646 - 85,423 - - - - - - - - 11,145,579 5,233,163 184,364 277,164 461,528 438,046 28,712,649 29,150,695 13,683,505 - 13,683,505 295,055 20,873,617 21,168,672 198,385 13,892,621 14,091,006 149,881 10,882,356 11,032,237 2,959,952 - 2,959,952 34.23% 32.75% 29,771 445,358 475,129 6.32% 6.00% 51.46% 55.07% 44.16% 49.96% 45.10% 14.84% 51.97% 13.50% 5.98% 6.00% 42.24% 44.68% 37.14% 41.21% 37.81% 13.92% 42.59% 12.86% - - 214,270 80,256 50,253 81,254 263,796 1,214,284 - - 583,114 225,731 140,581 224,941 734,081 - - 797,384 305,987 190,834 306,195 997,877 - 1,214,284 89,832 249,669 339,501 140,047 1,339,210 - 1,339,210 - - - - 2,091,393 254,532 158,296 263,892 253,269 263,820 - - - - - - - - - - - - - - - - - - - 276,664 128,627 79,542 125,511 412,453 - 588 2015 Annual Report Enersis Less than 90 days More than 90 days Total Current One to two years Two to Three to four Four to five Over five Total Non- Less than 90 three years years years years current days More than 90 days Total Current One to two Two to three Three to four Four to five years years years years Over five years 816,511 2,449,533 3,266,044 11,051,818 9,963,136 8,874,455 29,889,409 831,094 2,493,282 3,324,376 3,324,376 13,139,191 12,031,066 10,922,940 - - 296,974 468,030 328,549 - - - - - - - 884,973 1,181,947 1,166,085 18,073,119 1,384,969 1,852,999 1,802,011 132 132 353,913 1,051,014 1,404,927 1,376,324 1,347,722 15,345,293 1,217,828 1,629,232 1,585,546 1,541,859 971,195 1,299,744 1,261,210 1,222,676 299,648 857,071 1,146,947 1,113,465 1,079,983 1,046,501 256,394 - - - 1,025,611 3,076,833 4,102,444 4,102,444 14,508,170 13,140,689 11,773,208 980,672 2,942,017 3,922,689 12,030,283 1,870,908 19,089,213 20,960,121 19,089,213 10,722,720 9,415,157 17,218,305 15,347,397 1,807,054 6,713,471 8,520,525 14,284,700 14,811,692 209,307 21,914,348 138,615 248,674 154,691 257,815 247,438 257,861 2,043,262 248,674 154,691 257,815 247,438 257,861 4,308,038 3,112,021 5,186,700 4,979,205 5,186,719 156,980 103,961 186,505 116,018 193,361 185,579 193,395 658,584 750,273 138,615 248,673 154,691 257,815 247,439 257,860 457,020 907,795 1,560,680 576,612 310,712 1,216,089 2,519,698 3,735,787 1,120,552 1,494,069 2,847,830 4,052,184 3,852,974 3,653,765 12,622,968 27,029,721 12-31-2014 Current - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4,409,519 3,185,312 5,308,880 5,096,497 5,308,850 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 19,239,204 1,802,011 2,783,534 32,168,160 51,654,915 2,091,393 4,664,051 3,343,608 5,572,772 5,349,766 5,572,670 - - - - - - - - - - - - - - - - - - - - - - - - - - - 411,404 289,876 52,327 34,654 62,168 38,673 64,454 61,860 64,465 457,020 249,211 810,407 576,612 310,712 373,517 - - - - - - - - - - - - - - - 749,636 20,269 582 308,554 119,500 70,593 112,554 347,807 122,704 132,215 1,020,576 1,040,845 749,636 582 1,145,186 456,942 271,467 431,607 836,632 337,442 200,874 319,053 998,639 990,314 390,884 236,632 372,729 27,716 17,012 26,615 87,541 1,346,446 1,199,174 2,324,204 2,446,908 1,039,398 371,509 503,724 425,630 29,900 1,331,375 4,844,938 6,176,313 276,664 128,627 79,542 125,511 412,453 140,047 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Total Non- current 39,417,573 18,069,339 3,127,405 3,496,343 43,524,511 29,096,392 21,914,348 2,181,877 4,805,386 3,421,403 5,702,330 5,474,081 5,702,441 990,314 418,600 253,644 399,344 1,286,715 1,039,398 455,530 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 6,064,899 6,959,744 9,982,170 9,504,920 9,027,670 8,550,419 22,787,755 59,852,934 1,027,774 3,083,323 4,111,097 7,918,549 11,314,891 10,766,745 10,218,598 35,392,929 75,611,712 2,105,951 2,407,299 3,488,668 3,327,949 3,167,230 3,006,511 8,055,219 21,045,577 532,271 1,596,812 2,129,083 30,361,038 30,361,038 Identification of bank borrowings by company 12-31-2015 Tax ID Number Company Country Financial Institution Currency Effective Nominal interest rate interest rate Current Non-current 12-31-2014 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 Over 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 Over five years 29,889,409 831,094 2,493,282 3,324,376 3,324,376 13,139,191 12,031,066 10,922,940 132 - 132 - - - 353,913 1,051,014 1,404,927 1,376,324 1,347,722 15,345,293 - - - - 1,217,828 1,629,232 1,585,546 1,541,859 - - - - - - 857,071 1,146,947 1,113,465 1,079,983 1,046,501 256,394 - 411,404 289,876 - 1,025,611 3,076,833 4,102,444 4,102,444 14,508,170 13,140,689 11,773,208 816,511 2,449,533 3,266,044 11,051,818 9,963,136 8,874,455 - - 18,073,119 - - - - - 971,195 1,299,744 1,261,210 1,222,676 299,648 - - 10,722,720 9,415,157 17,218,305 15,347,397 - - - - 4,409,519 3,185,312 5,308,880 5,096,497 5,308,850 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Ampla Energía S.A. CGTF S.A. Chinango S.A.C. Chinango S.A.C. Chinango S.A.C. Chinango S.A.C. Codensa Coelce S.A. Coelce S.A. Coelce S.A. Edegel S.A.A Edegel S.A.A Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edesur S.A. Edesur S.A. Edesur S.A. Edesur S.A. Edesur S.A. Edesur S.A. Emgesa S.A. E.S.P. Emgesa S.A. E.S.P. Emgesa S.A. E.S.P. Emgesa S.A. E.S.P. Emgesa S.A. E.S.P. Emgesa S.A. E.S.P. Emgesa S.A. E.S.P. Emgesa S.A. E.S.P. Emgesa S.A. E.S.P. Emgesa S.A. E.S.P. Emgesa S.A. E.S.P. Emgesa S.A. E.S.P. Colombia Citibank Colombia Brasil Brasil Peru Peru Peru Peru Brasil Brasil Brasil Peru Peru Peru Peru Peru Peru Peru Peru Peru Banco do Brasil IFC - C Banco Scotiabank Banco de Credito del Peru Bank Of Nova Scotia Bank Of Nova Scotia Banco Itaú Brasil Banco do Brasil Banco Santander Banco Continental Bank Nova Scotia Banco de Interbank Banco de Interbank Banco Continental Banco Continental Banco Continental Banco Continental Banco de Interbank Argentina Banco Ciudad de Buenos Aires Argentina Banco Provincia de Buenos Aires Argentina Banco Itaú Argentina Argentina Banco Santander Río Argentina Banco Santander Río Argentina ICBC Argentina Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Banco Corpbanca BBVA Colombia Banco de Bogota AV VILLAS Citibank Colombia BBVA Colombia Banco de Bogota Banco de Crédito del Peru Banco de Crédito del Peru Banco de Crédito del Peru The Bank Of Tokyo Banco Davivienda 91.081.000-6 91.081.000-6 Endesa Chile S.A. Endesa Chile S.A. Chile Chile B.N.P. Paribas Banco Santander Central Costanera S.A. Argentina Banco Galicia Central Costanera S.A. Argentina Banco Itaú Argentina Central Costanera S.A. Argentina Banco Santander Río Central Costanera S.A. Argentina Banco Supervielle Central Costanera S.A. Argentina Citibank Central Costanera S.A. Argentina Credit Suisse International Central Costanera S.A. Argentina ICBC Argentina H. El Chocón S.A. Argentina Deutsche Bank Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Real US$ US$ US$ US$ US$ $ Col Real Real Real US$ US$ Soles Soles Soles Soles Soles Soles Soles $ Arg $ Arg $ Arg $ Arg $ Arg $ Arg $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Arg US$ Ch$ $ Arg $ Arg $ Arg $ Arg $ Arg US$ $ Arg US$ - - - - - - - - - - - - - - - - - - - - - - 13.58% 12.18% 3.98% 2.17% 3.25% 3.48% 4.40% 14.39% 13.72% 13.80% 3.44% 1.08% 6.90% 5.83% 5.10% 5.10% 5.10% 5.10% 4.67% 34.64% 35.36% 38.20% 29.74% 45.20% 34.06% 8.39% 8.27% 8.30% 6.06% 5.57% 6.30% 6.84% 5.87% 5.93% 5.65% 7.02% 6.30% 6.32% 6.00% 51.46% 55.07% 44.16% 49.96% 45.10% 14.84% 51.97% 13.50% 13.71% 12.32% 3.96% 2.06% 3.07% 3.40% 4.32% 14.68% 13.97% 15.76% 3.36% 1.06% 6.73% 5.71% 5.01% 5.01% 5.01% 5.01% 30.07% 30.67% 32.79% 26.91% 37.88% 29.50% 8.22% 8.11% 8.14% 5.93% 6.01% 6.16% 6.66% 5.70% 5.76% 5.50% 6.90% 6.15% 5.98% 6.00% 42.24% 44.68% 37.14% 41.21% 37.81% 13.92% 42.59% 12.86% 884,973 1,181,947 1,166,085 1,384,969 1,852,999 1,802,011 296,974 468,030 328,549 980,672 2,942,017 3,922,689 12,030,283 1,870,908 19,089,213 20,960,121 19,089,213 9,174,424 9,174,424 25,613,578 25,613,578 35,470 63,633 39,574 65,973 63,317 65,955 106,410 190,899 118,722 197,919 189,952 197,865 141,880 254,532 158,296 263,892 253,269 263,820 2,091,393 254,532 158,296 263,892 253,269 263,820 4.59% 12,530,646 12,530,646 85,423 85,423 184,364 277,164 461,528 894,845 301,348 11,145,579 5,233,163 11,145,579 5,233,163 438,046 28,712,649 29,150,695 13,683,505 13,683,505 295,055 20,873,617 21,168,672 198,385 13,892,621 14,091,006 149,881 10,882,356 11,032,237 532,271 1,596,812 2,129,083 30,361,038 2,959,952 2,959,952 214,270 80,256 50,253 81,254 263,796 1,214,284 583,114 225,731 140,581 224,941 734,081 797,384 305,987 190,834 306,195 997,877 1,214,284 276,664 128,627 79,542 125,511 412,453 89,832 249,669 339,501 140,047 1,339,210 1,339,210 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Endesa Argentina S.A. Argentina Citibank 34.23% 32.75% 29,771 445,358 475,129 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 19,239,204 1,802,011 2,783,534 32,168,160 51,654,915 - - - 2,091,393 4,664,051 3,343,608 5,572,772 5,349,766 5,572,670 - - - - - - - - - - - - - - - 30,361,038 - - - - 276,664 128,627 79,542 125,511 412,453 - 140,047 - - - - - - - - - - - - - - - 1,807,054 6,713,471 8,520,525 14,284,700 14,811,692 209,307 21,914,348 - 52,327 34,654 62,168 38,673 64,454 61,860 64,465 - 156,980 103,961 186,505 116,018 193,361 185,579 193,395 - 138,615 248,673 154,691 257,815 247,439 257,860 - 1,216,089 2,519,698 3,735,787 - 658,584 750,273 - - 457,020 907,795 1,560,680 576,612 310,712 457,020 249,211 810,407 576,612 310,712 373,517 138,615 248,674 154,691 257,815 247,438 257,861 2,043,262 248,674 154,691 257,815 247,438 257,861 - - - - - - - - - - - - - - - - - - - - - - - - 749,636 20,269 582 308,554 119,500 70,593 112,554 347,807 122,704 132,215 - - - - - - - - - - - - - - - - - - - - - 749,636 1,020,576 1,040,845 - 582 - - - - - - - - - - - - - 836,632 337,442 200,874 319,053 998,639 1,145,186 456,942 271,467 431,607 990,314 390,884 236,632 372,729 1,346,446 1,199,174 2,324,204 2,446,908 1,039,398 - - - - - - - - - - - - - - 27,716 17,012 26,615 87,541 - 371,509 503,724 425,630 29,900 - 1,331,375 4,844,938 6,176,313 - - 6,064,899 6,959,744 9,982,170 9,504,920 9,027,670 8,550,419 22,787,755 59,852,934 1,027,774 3,083,323 4,111,097 7,918,549 11,314,891 10,766,745 10,218,598 35,392,929 75,611,712 2,105,951 2,407,299 3,488,668 3,327,949 3,167,230 3,006,511 8,055,219 21,045,577 1,120,552 1,494,069 2,847,830 4,052,184 3,852,974 3,653,765 12,622,968 27,029,721 Total Non- current 39,417,573 - 18,069,339 - 3,127,405 3,496,343 43,524,511 - - - 29,096,392 21,914,348 2,181,877 4,805,386 3,421,403 5,702,330 5,474,081 5,702,441 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4,308,038 3,112,021 5,186,700 4,979,205 5,186,719 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 990,314 418,600 253,644 399,344 1,286,715 1,039,398 455,530 - 589 Consolidated Financial StatementsTax ID Number Company Country Financial Institution Currency Effective interest rate Nominal interest rate Current Non-current Non-current Less than 90 days More than 90 days Total Current One to two years Two to Three to four Four to five Over five Total Non- Less than 90 three years years years years current More than 90 days Total Current One to two Two to three Three to four Four to five years years years years Over five years Total Non- current 12-31-2015 12-31-2014 Current Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign H. El Chocón S.A. Argentina Standard Bank H. El Chocón S.A. Argentina Banco Itau H. El Chocón S.A. Argentina Banco Macro H. El Chocón S.A. Argentina Banco Santander - Sindicado IV H. El Chocón S.A. Argentina Banco Itau- Sindicado IV H. El Chocón S.A. Argentina Banco Galicia - Sindicado IV H. El Chocón S.A. Argentina Banco Hipotecario - Sindicado IV H. El Chocón S.A. Argentina Banco Ciudad -Sindicado IV US$ US$ $ Arg $ Arg $ Arg $ Arg $ Arg $ Arg H. El Chocón S.A. Argentina ICBC Argentina $ Arg 13.50% 13.50% 34.46% 40.59% 40.59% 40.59% 40.59% 40.59% 40.59% 12.86% 12.86% 31.10% 35.54% 35.54% 35.54% 35.54% 35.54% 35.54% 673,817 673,905 - - 673,817 673,905 75,083 1,113,612 1,188,695 266,203 241,619 228,411 73,221 30,708 296,189 516,165 464,727 442,424 144,361 59,481 573,160 782,368 706,346 670,835 217,582 90,189 869,349 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - days 667,376 687,484 306,765 273,493 262,403 86,271 34,894 - - - - - - - - - 2,425,364 3,092,740 2,459,835 3,147,319 1,522,852 - 1,522,852 1,185,867 1,492,632 1,023,289 1,057,510 1,331,003 1,014,727 1,277,130 335,251 135,536 421,522 170,430 340,037 1,314,222 1,654,259 1,133,871 - - - 912,706 875,846 290,454 117,383 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,023,289 912,706 875,846 290,454 117,383 1,133,871 Totals 94,438,113 119,047,141 213,485,254 94,680,542 93,341,883 46,131,557 11,556,930 30,842,974 276,553,886 17,616,391 45,859,907 63,476,298 68,780,986 65,194,217 78,955,951 36,824,905 48,015,897 297,771,956 b) Secured and unsecured liabilities d.Summary of secured and unsecured liabilities by currency and maturity Current Non-current Current Country Currency Nominal Interest Rate Maturity One to three months Three to twelve months Total Current at 12-31-2015 Maturity One to two years Two to three years Three to four years Four to five years Over five years Total Non-current at 12-31-2015 One to three months Three to twelve months Total Current at 12-31-2014 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Non-current Maturity One to two Two to three Three to four Four to five Over five years ThCh$ years ThCh$ years ThCh$ years ThCh$ years ThCh$ Total Non- current at 12-31-2014 ThCh$ Chile Chile Peru Peru Colombia Brasil US$ U.F. US$ Soles $ Col Real 7.00% 3,015,734 186,297,709 189,313,443 39,170 39,170 39,170 39,170 843,993 1,000,673 11,857,865 152,626,256 164,484,121 188,522,289 25,581,811 25,581,811 25,581,811 734,182,951 999,450,673 5.75% 6.50% 654,291 5,230,040 5,884,331 5,728,780 5,564,286 5,390,333 5,206,378 7,441,327 29,331,104 9,168,367 35,341,359 44,509,726 43,719,963 42,919,926 42,109,023 52,020,539 441,830,545 622,599,996 624,775 15,786,095 16,410,870 1,659,369 8,362,538 6,637,571 7,807,914 10,086,341 34,553,733 4,424,492 1,630,232 6,054,724 14,072,738 1,443,269 7,173,013 5,691,115 15,362,941 43,743,076 6.44% 13,029,793 18,645,206 31,674,999 33,667,892 12,316,415 55,639,169 36,169,256 166,145,520 303,938,252 8,992,510 33,040,637 42,033,147 30,115,012 32,058,804 11,190,625 39,655,619 189,474,327 302,494,387 15.64% 55,700,572 67,624,004 123,324,576 206,126,573 182,198,785 143,062,230 109,340,794 709,356,051 1,350,084,433 86,056,574 65,385,741 151,442,315 121,885,126 217,675,920 191,934,482 150,687,586 877,507,340 1,559,690,454 10.81% 10,784,409 97,033,475 107,817,884 116,967,735 94,643,824 44,934,561 - - 256,546,120 11,340,152 58,273,250 69,613,402 119,821,286 131,772,248 107,403,868 52,740,514 - 411,737,916 83,809,574 390,616,529 474,426,103 364,189,519 303,125,018 255,703,034 158,563,512 893,873,232 1,975,454,315 131,839,960 346,297,475 478,137,435 518,136,414 451,451,978 385,392,822 326,377,184 2,258,358,104 3,939,716,502 590 2015 Annual Report Enersis                                           Tax ID Number Company Country Financial Institution Currency Effective Nominal interest rate interest rate Current Non-current 12-31-2015 12-31-2014 Current Non-current Less than 90 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 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 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 667,376 687,484 1,522,852 306,765 273,493 262,403 86,271 34,894 2,425,364 3,092,740 2,459,835 3,147,319 - 1,522,852 - - - 1,185,867 1,492,632 1,023,289 1,057,510 1,331,003 1,014,727 1,277,130 335,251 135,536 421,522 170,430 912,706 875,846 290,454 117,383 340,037 1,314,222 1,654,259 1,133,871 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,023,289 912,706 875,846 290,454 117,383 1,133,871 Totals 94,438,113 119,047,141 213,485,254 94,680,542 93,341,883 46,131,557 11,556,930 30,842,974 276,553,886 17,616,391 45,859,907 63,476,298 68,780,986 65,194,217 78,955,951 36,824,905 48,015,897 297,771,956 Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign H. El Chocón S.A. Argentina Standard Bank H. El Chocón S.A. Argentina Banco Itau H. El Chocón S.A. Argentina Banco Macro H. El Chocón S.A. Argentina Banco Santander - Sindicado IV H. El Chocón S.A. Argentina Banco Itau- Sindicado IV H. El Chocón S.A. Argentina Banco Galicia - Sindicado IV H. El Chocón S.A. Argentina Banco Hipotecario - Sindicado IV H. El Chocón S.A. Argentina Banco Ciudad -Sindicado IV US$ US$ $ Arg $ Arg $ Arg $ Arg $ Arg $ Arg H. El Chocón S.A. Argentina ICBC Argentina $ Arg 13.50% 13.50% 34.46% 40.59% 40.59% 40.59% 40.59% 40.59% 40.59% 12.86% 12.86% 31.10% 35.54% 35.54% 35.54% 35.54% 35.54% 35.54% days 673,817 673,905 266,203 241,619 228,411 73,221 30,708 296,189 75,083 1,113,612 1,188,695 - - 516,165 464,727 442,424 144,361 59,481 573,160 673,817 673,905 782,368 706,346 670,835 217,582 90,189 869,349 - - - - - - - - - b) Secured and unsecured liabilities d.Summary of secured and unsecured liabilities by currency and maturity Country Currency Nominal Interest Rate Maturity One to three months Three to twelve months Total Current at 12-31-2015 Maturity One to two Two to years three years Three to four years Four to five Over five years ThCh$ years ThCh$ Current Non-current Current Non-current Maturity Total Non-current at 12-31-2015 One to three months Three to twelve months Total Current at 12-31-2014 One to two years Two to three years Three to four years Four to five years Over five years Total Non- current at 12-31-2014 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Chile Chile Peru Peru Colombia Brasil US$ U.F. US$ Soles $ Col Real 5.75% 6.50% 7.00% 3,015,734 186,297,709 189,313,443 39,170 39,170 39,170 39,170 843,993 1,000,673 11,857,865 152,626,256 164,484,121 188,522,289 25,581,811 25,581,811 25,581,811 734,182,951 999,450,673 654,291 5,230,040 5,884,331 5,728,780 5,564,286 5,390,333 5,206,378 7,441,327 29,331,104 9,168,367 35,341,359 44,509,726 43,719,963 42,919,926 42,109,023 52,020,539 441,830,545 622,599,996 624,775 15,786,095 16,410,870 1,659,369 8,362,538 6,637,571 7,807,914 10,086,341 34,553,733 4,424,492 1,630,232 6,054,724 14,072,738 1,443,269 7,173,013 5,691,115 15,362,941 43,743,076 6.44% 13,029,793 18,645,206 31,674,999 33,667,892 12,316,415 55,639,169 36,169,256 166,145,520 303,938,252 8,992,510 33,040,637 42,033,147 30,115,012 32,058,804 11,190,625 39,655,619 189,474,327 302,494,387 15.64% 55,700,572 67,624,004 123,324,576 206,126,573 182,198,785 143,062,230 109,340,794 709,356,051 1,350,084,433 86,056,574 65,385,741 151,442,315 121,885,126 217,675,920 191,934,482 150,687,586 877,507,340 1,559,690,454 10.81% 10,784,409 97,033,475 107,817,884 116,967,735 94,643,824 44,934,561 - - 256,546,120 11,340,152 58,273,250 69,613,402 119,821,286 131,772,248 107,403,868 52,740,514 - 411,737,916 83,809,574 390,616,529 474,426,103 364,189,519 303,125,018 255,703,034 158,563,512 893,873,232 1,975,454,315 131,839,960 346,297,475 478,137,435 518,136,414 451,451,978 385,392,822 326,377,184 2,258,358,104 3,939,716,502 591 Consolidated Financial Statements                                          e. Secured and unsecured liabilities by company 12-31-2015 Tax ID Number Company Country Financial Institucion Country Currency Effective interest rate Nominal interest rate Current Non-current Non-current Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Ampla Energía S.A. Ampla Energía S.A. Ampla Energía S.A. Ampla Energía S.A. Ampla Energía S.A. Ampla Energía S.A. Brasil Brasil Brasil Brasil Brasil Brasil Bonos 1ª Serie 16 Bonos 1ª Serie 17 Bonos 1ª Serie 18 Bonos 2ª Serie 26 Bonos 2ª Serie 27 Bonos 2ª Serie 28 Codensa Codensa Codensa Codensa Codensa Codensa Coelce S.A. Coelce S.A. Edegel S.A.A Edegel S.A.A Edegel S.A.A Edegel S.A.A Edegel S.A.A Edegel S.A.A Edegel S.A.A Edegel S.A.A Edegel S.A.A Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Colombia Colombia Colombia B102 B103 B604 Colombia Bonos B12-13 Colombia Bonos B5-13 Colombia Bonos B7-14 Brasil Brasil Itaú 1 Itaú 2 Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Banco Continental Banco Continental Banco Continental Banco Continental Banco Continental Banco Scotiabank Banco Scotiabank Banco Scotiabank Banco Scotiabank AFP Horizonte AFP Integra AFP Integra AFP Integra AFP Prima AFP Prima AFP Prima AFP Prima AFP Profuturo FCR - Macrofondo FCR - Macrofondo Fondo -Fosersoe Interseguro Cia de Seguros Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Brasil Brasil Brasil Brasil Brasil Brasil Colombia Colombia Colombia Colombia Colombia Colombia Brasil Brasil Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Real Real Real Real Real Real $ Col $ Col $ Col $ Col $ Col $ Col Real Real Soles Soles US$ US$ US$ US$ US$ US$ US$ Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles 13.66% 13.71% 14.69% 13.55% 15.35% 14.69% 12.03% 12.29% 10.56% 11.50% 10.56% 10.15% 13.77% 17.07% 6.41% 6.38% 6.44% 7.93% 7.25% 6.73% 6.09% 5.86% 6.57% 7.22% 8.16% 8.00% 5.91% 6.63% 6.94% 7.13% 7.44% 8.06% 5.56% 7.03% 8.75% 6.28% 6.06% 6.50% 7.06% 5.00% 5.13% 6.75% 7.28% 6.50% 7.38% 6.78% 6.34% 5.84% 6.34% 4.81% 6.13% 7,297,112 7,396,882 99,770 96,133 107,564 82,046 82,320 105,486 105,659 - 246,137 246,959 316,458 316,978 - 328,183 329,279 421,944 422,637 - 110,163 7,244,456 7,354,619 288,398 322,693 384,531 430,257 384,530 430,258 384,530 384,530 7,385,970 7,133,427 374,225 6,103,969 334,453 334,453 334,453 6,323,623 7,661,435 328,182 328,182 328,182 5,691,198 7,003,926 329,279 5,391,004 422,637 5,831,097 421,944 421,944 421,944 10,086,341 11,774,117 320,629 319,043 366,995 367,597 320,629 319,042 366,994 367,597 320,629 319,042 366,994 367,597 320,629 320,629 5,880,850 7,163,366 319,042 5,265,385 6,222,511 366,994 366,994 9,039,318 10,507,294 367,597 4,989,668 6,092,459 328,182 329,279 421,944 422,637 - - - Less than 90 days More than 90 days Total Current One to two years Two to three years Three to four Four to five Over five Total Non- Less than 90 More than 90 years years years current days days Total Current One to two Two to three Three to four Four to five years years years years Over five years Total Non- current 13.75% 13.89% 14.91% 369,157 11,002,428 11,371,585 - 635,501 10,359,267 10,994,768 9,723,766 781,789 14,938,243 15,720,032 14,156,454 9,723,766 657,480 1,972,439 2,629,919 13,403,776 12,088,817 1,011,209 3,033,627 4,044,836 12,571,319 11,223,040 9,874,762 33,669,121 2,077,536 6,232,607 8,310,143 8,310,143 30,018,631 27,248,583 24,478,536 18.97% 1,632,773 18,770,248 20,403,021 18,225,996 16,048,964 34,274,960 1,867,488 5,602,465 7,469,953 23,248,180 20,758,200 18,268,216 16.89% 14.91% 11.52% 11.76% 2,737,659 8,212,977 10,950,636 32,485,454 28,835,249 25,185,037 86,505,740 2,521,703 7,565,110 10,086,813 10,086,813 34,986,514 31,624,249 28,261,978 1,011,209 3,033,627 4,044,836 12,571,319 11,223,040 9,874,762 33,669,121 - - - 2,285,586 6,856,759 9,142,345 90,513,112 90,513,112 2,078,386 6,235,159 8,313,545 8,313,545 101,452,870 475,081 1,425,243 1,900,324 1,900,324 19,928,937 21,829,261 433,414 1,300,241 1,733,655 1,733,654 1,733,654 22,040,062 10.17% 33,159,237 - 33,159,237 - 630,368 1,891,104 2,521,472 37,225,610 11.03% 1,060,598 3,181,795 4,242,393 4,242,394 4,242,394 4,242,394 4,242,394 64,429,087 81,398,663 946,989 2,840,966 3,787,955 3,787,954 3,787,954 3,787,954 3,787,954 71,487,573 86,639,389 10.17% 9.78% 13.99% 907,996 2,723,989 3,631,985 3,631,986 44,267,794 47,899,780 790,923 2,372,770 3,163,693 3,163,694 3,163,694 49,010,829 881,572 2,644,715 3,526,287 3,526,287 3,526,287 3,526,287 3,526,287 44,335,883 58,441,031 834,666 2,503,998 3,338,664 3,338,664 3,338,664 3,338,664 3,338,664 52,801,231 66,155,887 325,485 10,211,261 10,536,746 - 686,017 13,717,969 14,403,986 13,031,952 17.79% 3,061,416 32,410,040 35,471,456 31,389,881 27,313,531 58,703,412 2,748,139 8,244,417 10,992,556 37,583,968 33,920,086 30,262,820 12-31-2014 Current - - - - - - - 3,881,082 - 3,881,082 383,265 6,296,355 347,108 6,333,114 374,225 334,452 374,225 334,453 220,851 3,194,800 303,277 3,682,353 442,955 5,600,079 4,083,492 4,143,705 141,246 8,362,253 8,503,499 272,312 363,083 5,260,818 4,085,912 4,153,382 - 5,163,298 133,501 6,228,634 6,362,135 240,472 239,282 275,246 275,698 287,449 260,331 280,669 250,839 165,638 227,458 332,216 425,707 214,790 384,374 463,801 392,374 306,280 323,360 198,600 514,819 394,416 495,772 674,816 80,157 79,761 91,749 91,899 95,816 86,777 93,556 83,613 55,213 60,213 75,819 110,739 90,771 67,470 5,163,298 141,902 71,597 128,125 154,600 130,791 102,093 107,787 66,200 171,606 131,472 165,257 224,939 194,336 299,678 262,032 122,598 - - - - - - - - - - - - - - - - 6,049,562 6,676,371 8,539,560 7,563,685 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 14,156,454 25,492,593 90,055,893 62,274,596 104,959,554 109,766,415 25,507,370 37,225,610 55,338,217 13,031,952 101,766,874 6,296,355 6,333,114 6,852,419 3,194,800 3,682,353 5,600,079 5,260,818 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 56,529 3,213,571 3,270,100 3,768,393 5,732,006 - - - - - - - - 3,768,393 5,732,006 - - - 92,940 5,291,865 5,384,805 - - - - - - - 116,196 348,588 464,784 464,783 464,783 464,783 6,548,565 7,942,914 113,501 340,502 454,003 454,003 454,003 454,003 454,003 6,397,801 8,213,813 - 145,245 73,305 - 131,143 158,242 133,872 104,498 110,347 67,781 175,558 134,479 169,060 230,147 - 435,735 219,914 - 393,429 474,727 401,617 313,495 331,041 203,343 526,675 403,436 507,179 690,441 - 580,980 293,219 - 524,572 632,969 535,489 417,993 - 580,980 293,219 - 524,572 632,969 535,489 417,994 441,388 6,385,839 271,124 4,407,670 702,233 537,915 676,239 920,588 702,233 537,915 676,238 920,588 580,980 580,980 580,980 11,366,149 13,690,069 293,219 4,183,575 4,770,013 524,572 632,969 535,489 417,994 702,233 537,915 676,238 920,588 524,572 632,969 535,489 417,994 524,572 9,017,708 11,115,996 632,969 17,624,247 20,156,123 535,489 16,868,345 19,010,301 417,994 10,373,415 12,045,391 6,385,839 4,407,670 12,972,704 702,233 10,866,005 537,915 537,915 14,287,204 16,438,864 676,238 11,017,735 13,046,449 920,588 920,588 24,598,494 28,280,846 567,609 286,387 512,499 618,401 523,165 408,373 431,147 264,800 686,425 525,888 661,029 899,755 567,609 286,387 512,499 618,402 523,166 408,374 686,425 525,889 661,029 899,755 567,609 286,387 512,499 618,402 523,166 408,374 686,425 525,889 661,029 899,755 567,609 567,609 11,672,179 13,942,615 286,387 4,087,287 4,946,448 512,499 618,402 523,166 408,374 686,425 525,889 661,029 899,755 512,499 9,322,674 11,372,670 618,402 14,100,867 16,574,475 523,166 13,871,576 15,964,240 408,374 10,543,055 12,176,551 6,669,994 4,570,955 686,425 10,616,171 13,361,871 525,889 13,962,937 16,066,493 661,029 10,764,497 13,408,613 899,755 24,037,040 27,636,060 431,146 6,238,848 264,800 4,306,155 352,647 1,057,940 1,410,587 1,410,587 1,410,587 1,410,587 1,410,587 21,265,895 26,908,243 345,808 1,037,423 1,383,231 1,383,230 1,383,230 1,383,230 1,383,230 22,161,415 27,694,335 197,979 303,907 263,940 122,692 224,521 593,936 791,915 791,915 791,915 791,915 791,915 14,457,206 17,624,866 583,009 777,345 777,345 777,345 777,345 777,345 14,910,973 18,020,353 911,720 1,215,627 1,215,627 1,215,627 21,403,513 23,834,767 899,035 1,198,713 1,198,713 1,198,713 1,198,713 20,916,464 24,512,603 791,820 1,055,760 1,055,760 1,055,760 1,055,760 1,055,760 20,595,659 24,818,699 786,096 1,048,128 1,048,128 1,048,128 1,048,128 1,048,128 21,232,292 25,424,804 368,075 673,563 490,767 10,557,968 898,084 898,085 898,085 15,080,872 10,557,968 16,877,042 367,794 490,392 490,391 10,323,176 - - - - 10,813,567 - 6.31% 6.28% 6.34% 7.78% 7.13% 6.63% 6.00% 5.78% 6.47% 7.09% 8.00% 7.85% 5.82% 6.52% 6.82% 7.00% 7.30% 7.91% 5.49% 6.91% 8.57% 6.19% 5.97% 6.40% 6.94% 4.94% 5.06% 6.64% 7.15% 6.40% 7.24% 6.67% 6.25% 5.76% 6.25% 4.76% 6.03% 592 2015 Annual Report Enersis e. Secured and unsecured liabilities by company 12-31-2015 Tax ID Number Company Country Financial Institucion Country Currency Effective Nominal interest rate interest rate Current Non-current 12-31-2014 Current Non-current Less than 90 More than 90 days 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 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 369,157 11,002,428 11,371,585 635,501 10,359,267 10,994,768 9,723,766 - - - - 1,011,209 3,033,627 4,044,836 12,571,319 11,223,040 9,874,762 18.97% 1,632,773 18,770,248 20,403,021 18,225,996 16,048,964 - 2,737,659 8,212,977 10,950,636 32,485,454 28,835,249 25,185,037 1,011,209 3,033,627 4,044,836 12,571,319 11,223,040 9,874,762 2,285,586 6,856,759 9,142,345 90,513,112 475,081 1,425,243 1,900,324 1,900,324 10.17% 33,159,237 - 33,159,237 - 19,928,937 - - - - - - - - - - - - - - - - - - - - - - - 781,789 14,938,243 15,720,032 14,156,454 - 9,723,766 657,480 1,972,439 2,629,919 13,403,776 12,088,817 - - - - 33,669,121 2,077,536 6,232,607 8,310,143 8,310,143 30,018,631 27,248,583 24,478,536 34,274,960 1,867,488 5,602,465 7,469,953 23,248,180 20,758,200 18,268,216 - 86,505,740 2,521,703 7,565,110 10,086,813 10,086,813 34,986,514 31,624,249 28,261,978 33,669,121 - - - - - 90,513,112 2,078,386 6,235,159 8,313,545 8,313,545 101,452,870 - - 21,829,261 433,414 1,300,241 1,733,655 1,733,654 1,733,654 22,040,062 - 630,368 1,891,104 2,521,472 37,225,610 - - - - - - - - - - - - - - - 14,156,454 25,492,593 90,055,893 62,274,596 104,959,554 - 109,766,415 25,507,370 37,225,610 11.03% 1,060,598 3,181,795 4,242,393 4,242,394 4,242,394 4,242,394 4,242,394 64,429,087 81,398,663 946,989 2,840,966 3,787,955 3,787,954 3,787,954 3,787,954 3,787,954 71,487,573 86,639,389 907,996 2,723,989 3,631,985 3,631,986 44,267,794 - - - 47,899,780 790,923 2,372,770 3,163,693 3,163,694 3,163,694 49,010,829 - - 55,338,217 881,572 2,644,715 3,526,287 3,526,287 3,526,287 3,526,287 3,526,287 44,335,883 58,441,031 834,666 2,503,998 3,338,664 3,338,664 3,338,664 3,338,664 3,338,664 52,801,231 66,155,887 325,485 10,211,261 10,536,746 17.79% 3,061,416 32,410,040 35,471,456 31,389,881 - 27,313,531 - - - - - - - 686,017 13,717,969 14,403,986 13,031,952 - - 58,703,412 2,748,139 8,244,417 10,992,556 37,583,968 33,920,086 30,262,820 - - - - 13,031,952 101,766,874 328,182 328,182 328,182 5,691,198 7,003,926 329,279 5,391,004 - - 6,049,562 421,944 421,944 421,944 10,086,341 11,774,117 422,637 5,831,097 - - - - - - - - - - 384,530 384,530 7,385,970 7,133,427 - - - - - - - - - - - - - - - - - - - - - - - 116,196 348,588 464,784 464,783 464,783 464,783 6,548,565 - - - - - - - - - - - - - - - - - - 6,676,371 - - - 8,539,560 7,563,685 - - - - - - - 80,157 79,761 91,749 91,899 240,472 239,282 275,246 275,698 320,629 319,043 366,995 367,597 3,881,082 - 3,881,082 320,629 319,042 366,994 367,597 - 95,816 86,777 93,556 83,613 55,213 60,213 75,819 110,739 287,449 260,331 280,669 250,839 165,638 383,265 6,296,355 347,108 6,333,114 374,225 334,452 374,225 334,453 220,851 3,194,800 4,083,492 4,143,705 - 227,458 332,216 303,277 3,682,353 442,955 5,600,079 141,246 8,362,253 8,503,499 - 90,771 67,470 272,312 363,083 5,260,818 4,085,912 4,153,382 - 320,629 320,629 5,880,850 7,163,366 319,042 5,265,385 - 6,222,511 366,994 366,994 9,039,318 10,507,294 367,597 4,989,668 320,629 319,042 366,994 367,597 - - - - - - - - - - - 6,092,459 - 6,296,355 6,333,114 6,852,419 374,225 6,103,969 334,453 334,453 334,453 6,323,623 7,661,435 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3,194,800 - 3,682,353 5,600,079 - 5,260,818 - 7,942,914 113,501 340,502 454,003 454,003 454,003 454,003 454,003 6,397,801 8,213,813 580,980 580,980 580,980 11,366,149 13,690,069 293,219 4,183,575 4,770,013 141,902 71,597 425,707 214,790 567,609 286,387 - 5,163,298 - 5,163,298 - 133,501 6,228,634 6,362,135 441,388 6,385,839 271,124 4,407,670 - 524,572 632,969 535,489 417,994 - - 702,233 537,915 676,238 920,588 - 524,572 632,969 535,489 417,994 - - - - - - 524,572 9,017,708 11,115,996 632,969 17,624,247 20,156,123 535,489 16,868,345 19,010,301 417,994 10,373,415 12,045,391 - - - - - 6,385,839 4,407,670 12,972,704 702,233 10,866,005 537,915 537,915 14,287,204 16,438,864 676,238 11,017,735 - 13,046,449 920,588 920,588 24,598,494 28,280,846 128,125 154,600 130,791 102,093 107,787 66,200 171,606 131,472 165,257 224,939 384,374 463,801 392,374 306,280 323,360 198,600 514,819 394,416 495,772 674,816 512,499 618,401 523,165 408,373 431,147 264,800 686,425 525,888 661,029 899,755 - 567,609 286,387 - 512,499 618,402 523,166 408,374 - 567,609 286,387 - 512,499 618,402 523,166 408,374 431,146 6,238,848 264,800 4,306,155 686,425 525,889 661,029 899,755 686,425 525,889 661,029 899,755 - - - - 567,609 567,609 11,672,179 13,942,615 286,387 4,087,287 - - 4,946,448 - - 512,499 618,402 523,166 408,374 - - 686,425 525,889 661,029 899,755 512,499 9,322,674 11,372,670 618,402 14,100,867 16,574,475 523,166 13,871,576 15,964,240 408,374 10,543,055 12,176,551 - - - - 6,669,994 4,570,955 686,425 10,616,171 13,361,871 525,889 13,962,937 16,066,493 661,029 10,764,497 13,408,613 899,755 24,037,040 27,636,060 - - - - - 352,647 1,057,940 1,410,587 1,410,587 1,410,587 1,410,587 1,410,587 21,265,895 26,908,243 345,808 1,037,423 1,383,231 1,383,230 1,383,230 1,383,230 1,383,230 22,161,415 27,694,335 593,936 791,915 791,915 791,915 791,915 791,915 14,457,206 17,624,866 911,720 1,215,627 1,215,627 1,215,627 21,403,513 - - 23,834,767 791,820 1,055,760 1,055,760 1,055,760 1,055,760 1,055,760 20,595,659 24,818,699 368,075 673,563 490,767 10,557,968 898,084 898,085 - - 898,085 15,080,872 - - - - 10,557,968 16,877,042 194,336 299,678 262,032 122,598 - 583,009 777,345 777,345 777,345 777,345 777,345 14,910,973 18,020,353 899,035 1,198,713 1,198,713 1,198,713 1,198,713 20,916,464 - 24,512,603 786,096 1,048,128 1,048,128 1,048,128 1,048,128 1,048,128 21,232,292 25,424,804 367,794 490,392 490,391 10,323,176 - - - - - - - - - - 10,813,567 - 593 Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Codensa Codensa Codensa Codensa Codensa Codensa Coelce S.A. Coelce S.A. Edegel S.A.A Edegel S.A.A Edegel S.A.A Edegel S.A.A Edegel S.A.A Edegel S.A.A Edegel S.A.A Edegel S.A.A Edegel S.A.A Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Ampla Energía S.A. Ampla Energía S.A. Ampla Energía S.A. Ampla Energía S.A. Ampla Energía S.A. Ampla Energía S.A. Brasil Brasil Brasil Brasil Brasil Brasil Bonos 1ª Serie 16 Bonos 1ª Serie 17 Bonos 1ª Serie 18 Bonos 2ª Serie 26 Bonos 2ª Serie 27 Bonos 2ª Serie 28 Colombia Colombia Colombia B102 B103 B604 Colombia Bonos B12-13 Colombia Bonos B5-13 Colombia Bonos B7-14 Brasil Brasil Itaú 1 Itaú 2 Brasil Brasil Brasil Brasil Brasil Brasil Colombia Colombia Colombia Colombia Colombia Colombia Brasil Brasil Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Real Real Real Real Real Real $ Col $ Col $ Col $ Col $ Col $ Col Real Real Soles Soles US$ US$ US$ US$ US$ US$ US$ Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles 13.66% 13.71% 14.69% 13.55% 15.35% 14.69% 12.03% 12.29% 10.56% 11.50% 10.56% 10.15% 13.77% 17.07% 6.41% 6.38% 6.44% 7.93% 7.25% 6.73% 6.09% 5.86% 6.57% 7.22% 8.16% 8.00% 5.91% 6.63% 6.94% 7.13% 7.44% 8.06% 5.56% 7.03% 8.75% 6.28% 6.06% 6.50% 7.06% 5.00% 5.13% 6.75% 7.28% 6.50% 7.38% 6.78% 6.34% 5.84% 6.34% 4.81% 6.13% 13.75% 13.89% 14.91% 16.89% 14.91% 11.52% 11.76% 10.17% 9.78% 13.99% 6.31% 6.28% 6.34% 7.78% 7.13% 6.63% 6.00% 5.78% 6.47% 7.09% 8.00% 7.85% 5.82% 6.52% 6.82% 7.00% 7.30% 7.91% 5.49% 6.91% 8.57% 6.19% 5.97% 6.40% 6.94% 4.94% 5.06% 6.64% 7.15% 6.40% 7.24% 6.67% 6.25% 5.76% 6.25% 4.76% 6.03% 246,137 246,959 316,458 316,978 328,183 329,279 421,944 422,637 110,163 7,244,456 7,354,619 7,297,112 7,396,882 288,398 322,693 384,531 430,257 56,529 3,213,571 3,270,100 3,768,393 5,732,006 92,940 5,291,865 5,384,805 - - - - - - - - 435,735 219,914 393,429 474,727 401,617 313,495 331,041 203,343 526,675 403,436 507,179 690,441 - - - - - - 580,980 293,219 524,572 632,969 535,489 417,993 702,233 537,915 676,239 920,588 82,046 82,320 105,486 105,659 99,770 96,133 107,564 3,768,393 5,732,006 - - - - - - 145,245 73,305 131,143 158,242 133,872 104,498 110,347 67,781 175,558 134,479 169,060 230,147 197,979 303,907 263,940 122,692 224,521 - - - - - - - - - - - - - - - 328,182 329,279 421,944 422,637 384,530 430,258 580,980 293,219 524,572 632,969 535,489 417,994 702,233 537,915 676,238 920,588 Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Banco Continental Banco Continental Banco Continental Banco Continental Banco Continental Banco Scotiabank Banco Scotiabank Banco Scotiabank Banco Scotiabank AFP Horizonte AFP Integra AFP Integra AFP Integra AFP Prima AFP Prima AFP Prima AFP Prima AFP Profuturo FCR - Macrofondo FCR - Macrofondo Fondo -Fosersoe Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Rimac Internacional Interseguro Cia de Seguros Consolidated Financial StatementsTax ID Number Company Country Financial Institucion Country Currency Effective interest rate Nominal interest rate Current Non-current Non-current 12-31-2015 12-31-2014 Current Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Emgesa S.A. E.S.P. Colombia Bonos A-10 Emgesa S.A. E.S.P. Colombia Bonos A102 Emgesa S.A. E.S.P. Colombia Bonos B09-09 Emgesa S.A. E.S.P. Colombia Bonos B10 Emgesa S.A. E.S.P. Colombia Bonos B-103 Emgesa S.A. E.S.P. Colombia Bonos B12 Emgesa S.A. E.S.P. Colombia Bonos B15 Emgesa S.A. E.S.P. Colombia Bonos B6-13 Emgesa S.A. E.S.P. Colombia Bonos B6-14 Emgesa S.A. E.S.P. Colombia Bonos exterior Emgesa S.A. E.S.P. Colombia Bonos quimbo Emgesa S.A. E.S.P. Colombia Bonos Quimbo B10 Emgesa S.A. E.S.P. Colombia Bonos Quimbo B10-14 Emgesa S.A. E.S.P. Colombia Bonos Quimbo B12-13 Emgesa S.A. E.S.P. Colombia Bonos Quimbo B15 Emgesa S.A. E.S.P. Colombia Bonos Quimbo B16-14 Emgesa S.A. E.S.P. Colombia Bonos Quimbo B6-13 Emgesa S.A. E.S.P. Colombia Bonos Quimbo B6-14 91.081.000-6 Endesa Chile S.A. 91.081.000-6 Endesa Chile S.A. 91.081.000-6 Endesa Chile S.A. 91.081.000-6 Endesa Chile S.A. 91.081.000-6 Endesa Chile S.A. 91.081.000-6 Endesa Chile S.A. 91.081.000-6 Endesa Chile S.A. 94.271.000-3 Enersis S.A. 94.271.000-3 Enersis S.A. 94.271.000-3 Enersis S.A. Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Banco Santander 522 Serie-M Banco Santander -317 Serie-H BNY Mellon - 144 - A BNY Mellon - Primera Emisión S-2 BNY Mellon - Primera Emisión S-3 BNY Mellon - Unica 24296 BNY Mellon - Primera Emisión S-1 Bonos UF 269 Yankee bonos 2016 Yankee bonos 2026 Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Chile Chile E.E.U.U. E.E.U.U. E.E.U.U. E.E.U.U. E.E.U.U. Chile E.E.U.U. E.E.U.U. $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col U.F. U.F. US$ US$ US$ US$ US$ U.F. US$ US$ 8.87% 8.87% 12.67% 12.54% 11.87% 12.88% 12.87% 10.91% 10.03% 10.17% 10.17% 10.13% 10.46% 11.71% 10.26% 10.81% 10.91% 10.03% 4.82% 7.17% 8.83% 7.40% 8.26% 4.32% 7.96% 7.02% 7.76% 7.76% Less than 90 days More than 90 days Total Current One to two years Two to three years Three to four Four to five Over five Total Non- Less than 90 More than 90 years years years current days days Total Current One to two Two to three Three to four Four to five years years years years Over five years Total Non- current 8.59% 8.59% - - - - - - - - - - 53,979,516 10,281,812 - - 53,979,516 10,281,812 - - 12.11% 1,318,361 3,955,083 5,273,444 5,273,444 52,249,218 57,522,662 1,213,148 3,639,445 4,852,593 4,852,593 4,852,593 58,216,407 - - 11.99% 11.87% 12.30% 12.29% 10.49% 9.67% 10.17% 10.17% 966,592 2,899,777 3,866,369 3,866,370 3,866,370 36,715,143 44,447,883 882,562 2,647,687 3,530,249 3,530,250 3,530,250 3,530,250 41,216,421 1,116,102 3,348,305 4,464,407 39,054,871 39,054,871 982,211 2,946,634 3,928,845 3,928,846 43,805,925 551,017 1,653,050 2,204,067 2,204,066 2,204,066 2,204,066 2,204,066 21,473,245 30,289,509 509,006 1,527,019 2,036,025 2,036,026 2,036,026 2,036,026 2,036,026 25,961,808 34,105,912 344,557 1,033,670 1,378,227 1,378,226 1,378,226 1,378,226 1,378,226 16,871,733 22,384,637 949,671 1,266,228 1,266,228 1,266,228 1,266,228 1,266,228 19,363,519 24,428,431 258,219 774,658 1,032,877 1,032,878 1,032,878 11,916,341 13,982,097 684,309 912,412 912,412 912,412 912,412 13,233,669 15,970,905 518,847 1,556,541 2,075,388 2,075,389 2,075,389 2,075,389 25,654,089 31,880,256 453,662 1,360,986 1,814,648 1,814,647 1,814,647 1,814,647 1,814,647 28,677,414 35,936,002 515,898 1,547,693 2,063,591 2,063,591 2,063,591 2,063,591 2,063,591 20,454,156 28,708,520 581,078 1,743,234 2,324,312 2,324,312 2,324,312 2,324,312 2,324,312 25,362,714 34,659,962 316,557 228,103 3,707,356 11,122,068 14,829,424 14,829,424 14,829,424 14,829,424 14,829,424 146,988,109 206,305,805 4,175,756 12,527,267 16,703,023 16,703,023 16,703,023 16,703,023 16,703,023 182,262,097 249,074,189 9.77% 1,443,011 4,329,034 5,772,045 5,772,045 5,772,045 5,772,045 5,772,045 79,151,390 102,239,570 1,246,095 3,738,285 4,984,380 4,984,380 4,984,380 4,984,380 4,984,380 91,102,169 111,039,689 10.08% 921,801 2,765,403 3,687,204 3,687,204 3,687,204 3,687,204 3,687,204 54,611,375 69,360,191 816,008 2,448,025 3,264,033 3,264,033 3,264,033 3,264,033 3,264,033 61,737,690 74,793,822 11.23% 2,046,250 6,138,749 8,184,999 8,184,998 8,184,998 8,184,998 8,184,998 120,690,336 153,430,328 1,843,223 5,529,669 7,372,892 7,372,892 7,372,892 7,372,892 7,372,892 134,542,069 164,033,637 9.89% 10.39% 10.49% 9.67% 4.75% 6.20% 8.63% 7.33% 8.13% 4.25% 7.88% 5.75% 7.40% 6.60% 975,333 2,925,998 3,901,331 3,901,331 3,901,331 3,901,331 3,901,331 72,380,849 87,986,173 845,671 2,537,012 3,382,683 3,382,682 3,382,682 3,382,682 3,382,682 77,827,476 91,358,204 832,281 2,496,844 3,329,125 3,329,126 3,329,126 3,329,126 3,329,126 67,969,888 81,286,392 743,130 2,229,390 2,972,520 2,972,520 2,972,520 2,972,520 2,972,520 72,211,138 84,101,218 796,647 2,389,940 3,186,587 3,186,587 3,186,587 36,763,745 43,136,919 703,731 2,111,194 2,814,925 2,814,926 2,814,926 2,814,926 40,827,900 49,272,678 618,230 1,854,690 2,472,920 2,472,920 2,472,920 2,472,920 30,568,013 37,986,773 540,559 1,621,676 2,162,235 2,162,235 2,162,235 2,162,235 2,162,235 34,170,442 42,819,382 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 654,291 5,230,040 5,884,331 5,728,780 5,564,286 5,390,333 5,206,378 7,441,327 29,331,104 790,690 5,336,045 6,126,735 5,948,045 5,759,080 5,559,249 5,347,928 12,363,802 34,978,104 3,005,941 186,268,331 189,274,272 - 2,820,606 8,461,818 11,282,424 162,940,478 - 162,940,478 9,793 29,378 39,171 39,170 39,170 39,170 39,170 843,993 1,000,673 8,643 25,929 34,572 34,572 34,572 34,572 34,572 763,049 901,337 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 67,921,593 51,807,171 47,734,771 - - - - - - - - - - - - - - - - - 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 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 2,641,806 124,978,079 127,619,885 - 789,495 2,368,484 3,157,979 3,157,979 3,157,979 3,157,979 3,157,979 77,747,246 90,379,162 502,137 1,506,412 2,008,549 2,008,549 2,008,549 2,008,549 2,008,549 168,757,572 176,791,768 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 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 - - - - - - - - Totales 83,809,574 390,616,529 474,426,103 364,189,519 303,125,018 255,703,034 158,563,512 893,873,232 1,975,454,315 131,839,960 346,297,475 478,137,435 518,136,414 451,451,978 385,392,822 326,377,184 2,258,358,104 3,939,716,502 594 2015 Annual Report Enersis 13,982,097 31,880,256 453,662 1,360,986 1,814,648 1,814,647 1,814,647 1,814,647 1,814,647 28,677,414 35,936,002 344,557 1,033,670 1,378,227 1,378,226 1,378,226 1,378,226 1,378,226 16,871,733 22,384,637 316,557 228,103 949,671 1,266,228 1,266,228 1,266,228 1,266,228 1,266,228 19,363,519 24,428,431 684,309 912,412 912,412 912,412 912,412 13,233,669 - 15,970,905 258,219 774,658 1,032,877 1,032,878 1,032,878 11,916,341 - 518,847 1,556,541 2,075,388 2,075,389 2,075,389 2,075,389 25,654,089 - - Tax ID Number Company Country Financial Institucion Country Currency Effective Nominal interest rate interest rate Current Non-current 12-31-2014 Current Non-current Less than 90 More than 90 days 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 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 12.11% 1,318,361 3,955,083 5,273,444 5,273,444 52,249,218 - - - - - 966,592 2,899,777 3,866,369 3,866,370 3,866,370 36,715,143 1,116,102 3,348,305 4,464,407 39,054,871 - - - - - - - - - - - - - - 53,979,516 10,281,812 - - 53,979,516 10,281,812 - - - - - - - - 57,522,662 1,213,148 3,639,445 4,852,593 4,852,593 4,852,593 58,216,407 - - 44,447,883 882,562 2,647,687 3,530,249 3,530,250 3,530,250 3,530,250 41,216,421 39,054,871 982,211 2,946,634 3,928,845 3,928,846 43,805,925 - - - - - - - - 67,921,593 51,807,171 47,734,771 551,017 1,653,050 2,204,067 2,204,066 2,204,066 2,204,066 2,204,066 21,473,245 30,289,509 509,006 1,527,019 2,036,025 2,036,026 2,036,026 2,036,026 2,036,026 25,961,808 34,105,912 Emgesa S.A. E.S.P. Colombia Bonos A-10 Emgesa S.A. E.S.P. Colombia Bonos A102 Emgesa S.A. E.S.P. Colombia Bonos B09-09 Emgesa S.A. E.S.P. Colombia Bonos B10 Emgesa S.A. E.S.P. Colombia Bonos B-103 Emgesa S.A. E.S.P. Colombia Bonos B12 Emgesa S.A. E.S.P. Colombia Bonos B15 Emgesa S.A. E.S.P. Colombia Bonos B6-13 Emgesa S.A. E.S.P. Colombia Bonos B6-14 Emgesa S.A. E.S.P. Colombia Bonos exterior Emgesa S.A. E.S.P. Colombia Bonos quimbo Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Emgesa S.A. E.S.P. Colombia Bonos Quimbo B15 Emgesa S.A. E.S.P. Colombia Bonos Quimbo B16-14 Emgesa S.A. E.S.P. Colombia Bonos Quimbo B6-13 Emgesa S.A. E.S.P. Colombia Bonos Quimbo B6-14 91.081.000-6 Endesa Chile S.A. Emisión S-3 91.081.000-6 Endesa Chile S.A. BNY Mellon - Unica 24296 BNY Mellon - Primera E.E.U.U. 91.081.000-6 Endesa Chile S.A. 91.081.000-6 Endesa Chile S.A. 91.081.000-6 Endesa Chile S.A. 91.081.000-6 Endesa Chile S.A. 91.081.000-6 Endesa Chile S.A. 94.271.000-3 Enersis S.A. 94.271.000-3 Enersis S.A. 94.271.000-3 Enersis S.A. Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Banco Santander 522 Serie-M Serie-H Banco Santander -317 BNY Mellon - 144 - A BNY Mellon - Primera Emisión S-2 BNY Mellon - Primera Emisión S-1 Bonos UF 269 Yankee bonos 2016 Yankee bonos 2026 Totales Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Colombia Chile Chile E.E.U.U. E.E.U.U. E.E.U.U. E.E.U.U. Chile E.E.U.U. E.E.U.U. $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col $ Col U.F. U.F. US$ US$ US$ US$ US$ U.F. US$ US$ 8.87% 8.87% 12.67% 12.54% 11.87% 12.88% 12.87% 10.91% 10.03% 10.17% 10.17% 10.13% 10.46% 11.71% 10.26% 10.81% 10.91% 10.03% 4.82% 7.17% 8.83% 7.40% 8.26% 4.32% 7.96% 7.02% 7.76% 7.76% 8.59% 8.59% 11.99% 11.87% 12.30% 12.29% 10.49% 9.67% 10.17% 10.17% 9.89% 10.39% 10.49% 9.67% 4.75% 6.20% 8.63% 7.33% 8.13% 4.25% 7.88% 5.75% 7.40% 6.60% 12-31-2015 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Emgesa S.A. E.S.P. Colombia Bonos Quimbo B10 9.77% 1,443,011 4,329,034 5,772,045 5,772,045 5,772,045 5,772,045 5,772,045 79,151,390 102,239,570 1,246,095 3,738,285 4,984,380 4,984,380 4,984,380 4,984,380 4,984,380 91,102,169 111,039,689 Emgesa S.A. E.S.P. Colombia Bonos Quimbo B10-14 10.08% 921,801 2,765,403 3,687,204 3,687,204 3,687,204 3,687,204 3,687,204 54,611,375 69,360,191 816,008 2,448,025 3,264,033 3,264,033 3,264,033 3,264,033 3,264,033 61,737,690 74,793,822 Emgesa S.A. E.S.P. Colombia Bonos Quimbo B12-13 11.23% 2,046,250 6,138,749 8,184,999 8,184,998 8,184,998 8,184,998 8,184,998 120,690,336 153,430,328 1,843,223 5,529,669 7,372,892 7,372,892 7,372,892 7,372,892 7,372,892 134,542,069 164,033,637 515,898 1,547,693 2,063,591 2,063,591 2,063,591 2,063,591 2,063,591 20,454,156 28,708,520 581,078 1,743,234 2,324,312 2,324,312 2,324,312 2,324,312 2,324,312 25,362,714 34,659,962 3,707,356 11,122,068 14,829,424 14,829,424 14,829,424 14,829,424 14,829,424 146,988,109 206,305,805 4,175,756 12,527,267 16,703,023 16,703,023 16,703,023 16,703,023 16,703,023 182,262,097 249,074,189 975,333 2,925,998 3,901,331 3,901,331 3,901,331 3,901,331 3,901,331 72,380,849 87,986,173 845,671 2,537,012 3,382,683 3,382,682 3,382,682 3,382,682 3,382,682 77,827,476 91,358,204 832,281 2,496,844 3,329,125 3,329,126 3,329,126 3,329,126 3,329,126 67,969,888 81,286,392 743,130 2,229,390 2,972,520 2,972,520 2,972,520 2,972,520 2,972,520 72,211,138 84,101,218 796,647 2,389,940 3,186,587 3,186,587 3,186,587 36,763,745 - 618,230 1,854,690 2,472,920 2,472,920 2,472,920 2,472,920 30,568,013 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 43,136,919 703,731 2,111,194 2,814,925 2,814,926 2,814,926 2,814,926 40,827,900 - 49,272,678 37,986,773 540,559 1,621,676 2,162,235 2,162,235 2,162,235 2,162,235 2,162,235 34,170,442 42,819,382 - - - - - - - 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 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 2,641,806 124,978,079 127,619,885 - - - - - - 789,495 2,368,484 3,157,979 3,157,979 3,157,979 3,157,979 3,157,979 77,747,246 90,379,162 502,137 1,506,412 2,008,549 2,008,549 2,008,549 2,008,549 2,008,549 168,757,572 176,791,768 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 2,474,039 7,422,118 9,896,157 9,896,157 9,896,157 9,896,157 9,896,157 195,949,534 235,534,162 654,291 5,230,040 5,884,331 5,728,780 5,564,286 5,390,333 5,206,378 7,441,327 29,331,104 790,690 5,336,045 6,126,735 5,948,045 5,759,080 5,559,249 5,347,928 12,363,802 34,978,104 3,005,941 186,268,331 189,274,272 - - - - - 2,820,606 8,461,818 11,282,424 162,940,478 - - - - 162,940,478 9,793 29,378 39,171 39,170 39,170 39,170 39,170 843,993 1,000,673 8,643 25,929 34,572 34,572 34,572 34,572 34,572 763,049 901,337 83,809,574 390,616,529 474,426,103 364,189,519 303,125,018 255,703,034 158,563,512 893,873,232 1,975,454,315 131,839,960 346,297,475 478,137,435 518,136,414 451,451,978 385,392,822 326,377,184 2,258,358,104 3,939,716,502 595 Consolidated Financial Statementsc ) Financial lease obligations Financial lease obligations by company Tax ID Number Company Country Tax ID Number Creditor Company Country Currency Nominal interest rate Current 12-31-2015 Foreign Codensa Colombia Foreign Foreign Codensa Colombia Foreign Union Temporal Rentacol Mareauto Colombia SAS Codensa Colombia Colombia Less than 90 days More than 90 days Total Current One to two years Dos a Three to four Four to five Over five Total Non- Less than 90 More than 90 Tres Years years years years current days days Total Current One to two Two to three Three to four Four to five years years years years Over five years Total Non- current Colombia $ Col 10.80% 104,950 284,704 389,654 309,519 $ Col $ Col US$ Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles US$ Soles US$ $ Col $ Col US$ 10.08% 3,894 11,011 14,905 14,462 7.27% 2.02% 6.13% 5.79% 5.65% 5.29% 5.95% 6.00% 5.99% 5.98% 5.67% 24,433 35,543 59,976 25,939 - - - - 111,240 88,396 81,772 77,478 68,777 948 - - - - - 181,920 245,252 232,058 205,694 2,845 - - - - 111,240 270,316 327,024 309,536 274,471 3,793 - - - - - - - 12,127 22,795 70,687 5.13% 174,389 519,118 693,507 682,380 5.80% 5.70% 2.10% 10.80% 6.55% 6.50% 1,905,026 5,600,924 7,505,950 7,201,538 6,897,126 6,592,714 14,774,124 35,465,502 2,333,168 6,862,462 9,195,630 8,830,188 8,464,746 8,099,305 7,733,863 17,273,508 50,401,610 649,814 1,909,231 2,559,045 2,451,818 2,344,592 2,237,365 4,986,674 2,584,782 7,682,823 10,267,605 15,644,049 7,331 6,977 - 21,099 20,183 - 28,430 27,160 - 27,912 27,731 - Non-current 6,468 13,636 - - - - - - - - - - - - - - 23,306 20,095 12-31-2014 Current Non-current 2,250,920 6,692,173 8,943,093 8,781,527 13,384,629 22,166,156 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 309,519 20,930 39,575 - - - - - - - 12,127 22,795 70,687 682,380 12,020,449 15,644,049 51,218 47,826 - - - - - - - - - - - - - - - - - - - - 44,072 16,329 29,359 109,063 87,951 81,506 76,296 66,774 - - - - - - - - - 19,575 326,675 262,195 243,250 228,219 200,287 - - - - - - - - - - - 44,072 16,329 48,934 435,738 350,146 324,756 304,515 267,061 - - - - - - - - - - - - - - - - - - - - - 108,717 265,456 321,384 302,736 266,963 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 108,717 265,456 321,384 302,736 266,963 - 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 Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Banco Corpbanca Colombia Banco Scotiabank Banco de Interbank Banco Santander Peru Banco de Crédito Banco de Interbank Banco Continental Banco Continental Banco Continental Banco Continental Banco Continental Banco Santander Peru Banco de Crédito Banco de Crédito Banco Scotiabank Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Banco Corpbanca Colombia Equirent S.A. Colombia Foreign Foreign Foreign Edegel S.A.A. Edelnor S.A.A. Foreign Edelnor S.A.A. Foreign Foreign Foreign Foreign Foreign Foreign Foreign Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Foreign Edelnor S.A.A. Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Foreign Foreign Foreign Foreign Foreign EE Piura EE Piura Edegel S.A.A. Emgesa S.A. E.S.P. Colombia Emgesa S.A. E.S.P. Colombia 91.081.000-6 Endesa Chile S.A. Chile 87.509.100-K Abengoa Chile Chile Totales 5,890,207 16,952,405 22,842,612 26,490,957 9,305,223 8,830,079 19,760,798 - 64,387,057 5,747,637 16,792,282 22,539,919 21,488,962 24,463,865 10,716,456 10,353,847 29,561,323 96,584,453 596 2015 Annual Report Enersis c ) Financial lease obligations Financial lease obligations by company Foreign Codensa Colombia Foreign Colombia $ Col 10.80% 104,950 284,704 389,654 309,519 Foreign Codensa Colombia Foreign Colombia 10.08% 3,894 11,011 14,905 14,462 Codensa Colombia Banco Corpbanca Colombia 24,433 35,543 59,976 25,939 Foreign Edelnor S.A.A. Edegel S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. Edelnor S.A.A. EE Piura EE Piura Edegel S.A.A. Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Union Temporal Rentacol Mareauto Colombia SAS Banco Scotiabank Banco de Interbank Banco Santander Peru Banco de Crédito Banco de Interbank Banco Continental Banco Continental Banco Continental Banco Continental Banco Continental Banco Santander Peru Banco de Crédito Banco de Crédito Banco Scotiabank Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Totales $ Col $ Col US$ Soles Soles Soles Soles Soles Soles Soles Soles Soles Soles US$ Soles US$ $ Col $ Col US$ 7.27% 2.02% 6.13% 5.79% 5.65% 5.29% 5.95% 6.00% 5.99% 5.98% 5.67% 5.80% 5.70% 2.10% 10.80% 6.55% 6.50% - - - - 111,240 88,396 81,772 77,478 68,777 948 - - - - - 181,920 245,252 232,058 205,694 2,845 - - - - 111,240 270,316 327,024 309,536 274,471 3,793 - - - - - - - 12,127 22,795 70,687 Foreign Edelnor S.A.A. 5.13% 174,389 519,118 693,507 682,380 Tax ID Number Company Country Company Country Currency Nominal interest rate Current Tax ID Number Creditor Non-current 12-31-2015 12-31-2014 Current Non-current Less than 90 More than 90 days days Total Current One to two years Dos a Tres Years Three to four years Four to five years Over 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 Over five years Total Non- current - 6,468 13,636 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Emgesa S.A. E.S.P. Colombia Banco Corpbanca Colombia Emgesa S.A. E.S.P. Colombia Equirent S.A. Colombia 91.081.000-6 Endesa Chile S.A. Chile 87.509.100-K Abengoa Chile Chile 1,905,026 5,600,924 7,505,950 7,201,538 6,897,126 6,592,714 14,774,124 649,814 1,909,231 2,559,045 2,451,818 2,344,592 2,237,365 4,986,674 2,584,782 7,682,823 10,267,605 15,644,049 7,331 6,977 - 21,099 20,183 - 28,430 27,160 - 27,912 27,731 - - 23,306 20,095 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 309,519 20,930 39,575 - - - - - - - 12,127 22,795 70,687 682,380 - - - - - - - - - - - - - - - 2,250,920 6,692,173 8,943,093 8,781,527 13,384,629 44,072 16,329 29,359 109,063 87,951 81,506 76,296 66,774 - - - - 19,575 326,675 262,195 243,250 228,219 200,287 - - 44,072 16,329 48,934 435,738 350,146 324,756 304,515 267,061 - - - - - 108,717 265,456 321,384 302,736 266,963 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 22,166,156 - - - 108,717 265,456 321,384 302,736 266,963 - - 35,465,502 2,333,168 6,862,462 9,195,630 8,830,188 8,464,746 8,099,305 7,733,863 17,273,508 50,401,610 12,020,449 15,644,049 51,218 47,826 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 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 5,890,207 16,952,405 22,842,612 26,490,957 9,305,223 8,830,079 19,760,798 - 64,387,057 5,747,637 16,792,282 22,539,919 21,488,962 24,463,865 10,716,456 10,353,847 29,561,323 96,584,453 597 Consolidated Financial Statementsd ) Other liabilities f. Other liabilities by company Tax ID Number Company Country Tax ID Number Creditor Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Ampla Energía S.A. Brazil Ampla Energía S.A. Brazil Cien S.A. Coelce S.A. Coelce S.A. Coelce S.A. Coelce S.A. Coelce S.A. Brazil Brazil Brazil Brazil Brazil Brazil Central Costanera S.A. Central Costanera S.A. Argentina Foreign Argentina Foreign H. El Chocón S.A. Argentina Hidroinvest S.A. Argentina Foreign Foreign Totals Company Country Currency Nominal interest rate Current 12-31-2015 Non-current Non-current 12-31-2014 Current Eletrobrás BNDES Bndes Banco do Nordeste Eletrobras BNDES Banco do Brasil Banco do Brasil Mitsubishi (deuda garantizada) Otros Otros Otros Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Argentina Argentina Argentina Argentina Real Real Real Real Real Real US$ Real US$ Ar$ Ar$ US$ Less than 90 days More than 90 days Total Current One to two years - - - - Dos a Three to four Four to five Over five Total Non- Less than 90 More than 90 Tres Years years years years current days days Total Current One to two Two to three Three to four Four to five years years years years Over five years Total Non- current 405,054 1,185,145 1,590,199 1,476,915 1,310,337 923,887 406,995 569,694 4,687,828 7,170,765 22,702,647 29,873,412 29,555,949 23,816,520 18,573,479 12,754,861 8,800,388 93,501,197 8,176,081 23,832,151 32,008,232 30,151,983 28,295,732 22,101,795 16,454,992 16,008,608 113,013,110 298,586 868,484 1,167,070 1,094,340 1,200,204 3,489,229 4,689,433 4,392,407 1,021,609 4,095,381 948,878 977,435 447,165 3,511,992 187,708 548,354 736,062 696,676 657,291 617,907 578,521 274,492 2,824,887 9,465,223 1,603,830 4,671,101 6,274,931 5,900,564 5,526,195 5,151,828 1,229,462 17,808,049 693,523 1,569,329 2,262,852 1,878,520 1,681,608 1,485,719 1,223,656 1,609,492 7,878,995 795,871 2,331,766 3,127,637 2,928,324 2,610,994 2,351,880 2,094,052 4,093,070 14,078,320 6.57% 9.17% 8.33% 7.85% 6.10% 10.43% 2,314,061 7,646,652 9,960,713 10,148,604 9,382,994 8,617,385 5,533,315 3,928,496 37,610,794 2,429,804 7,097,903 9,527,707 9,017,025 8,506,344 7,995,663 7,484,981 6,508,647 39,512,660 52.56% 12.63% 20,770 62,310 83,080 83,080 83,079 83,080 83,080 2,247,602 2,579,921 17,726 53,177 70,903 70,902 70,902 70,902 70,902 1,993,373 2,276,981 - - - - 1,963,184 5,889,552 7,852,736 24,836,144 22,872,959 20,909,775 18,946,591 87,565,469 0.25% 590,129 1,768,176 2,358,305 5,810,613 1,792,235 1,883,493 1,937,302 23,273,695 34,697,338 9,523 1,850,404 1,859,927 671,565 670,617 669,670 808,784 23,886,776 26,707,412 17.29% - - - - 23.59% 2,347,678 14,015,924 16,363,602 4,358,417 681,224 5,039,641 127,042 7,769,157 1,945,985 2.53% 898 196,109 197,007 - 1,097,278 1,294,252 2,391,530 381,125 168,039 508,167 168,991 952 - - - - - - - - - - 9,715,142 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 14,636,614 52,318,860 66,955,474 57,321,930 42,554,650 32,569,469 21,979,379 39,859,673 194,285,101 16,814,053 49,302,969 66,117,022 83,519,255 72,467,356 60,793,307 48,075,280 53,334,660 318,189,858 Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign 598 2015 Annual Report Enersis d ) Other liabilities f. Other liabilities by company Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Ampla Energía S.A. Brazil Ampla Energía S.A. Brazil Brazil Brazil Brazil Brazil Brazil Brazil Cien S.A. Coelce S.A. Coelce S.A. Coelce S.A. Coelce S.A. Coelce S.A. S.A. S.A. Central Costanera Argentina Foreign Central Costanera Argentina Foreign H. El Chocón S.A. Argentina Hidroinvest S.A. Argentina Eletrobrás BNDES Bndes Eletrobras BNDES Banco do Brasil Banco do Brasil Mitsubishi (deuda garantizada) Otros Otros Otros Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Argentina Argentina Argentina Argentina 6.57% 9.17% 8.33% 7.85% 6.10% 52.56% 12.63% 17.29% Real Real Real Real Real Real US$ Real US$ Ar$ Ar$ US$ Tax ID Number Creditor Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Totals 12-31-2015 - - - - - - - - - - - - - Tax ID Number Company Country Company Country Currency Nominal interest rate Current Non-current 12-31-2014 Current Non-current Less than 90 More than 90 days days Total Current One to two years Dos a Tres Years Three to four years Four to five years Over 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 Over five years Total Non- current 7,170,765 22,702,647 29,873,412 29,555,949 23,816,520 18,573,479 12,754,861 8,800,388 93,501,197 8,176,081 23,832,151 32,008,232 30,151,983 28,295,732 22,101,795 16,454,992 16,008,608 113,013,110 - - - - - 405,054 1,185,145 1,590,199 1,476,915 1,310,337 923,887 406,995 569,694 4,687,828 Banco do Nordeste 1,200,204 3,489,229 4,689,433 4,392,407 298,586 868,484 1,167,070 1,094,340 1,021,609 4,095,381 948,878 977,435 447,165 - - - 3,511,992 187,708 548,354 736,062 696,676 657,291 617,907 578,521 274,492 2,824,887 9,465,223 1,603,830 4,671,101 6,274,931 5,900,564 5,526,195 5,151,828 1,229,462 - 17,808,049 693,523 1,569,329 2,262,852 1,878,520 1,681,608 1,485,719 1,223,656 1,609,492 7,878,995 795,871 2,331,766 3,127,637 2,928,324 2,610,994 2,351,880 2,094,052 4,093,070 14,078,320 10.43% 2,314,061 7,646,652 9,960,713 10,148,604 9,382,994 8,617,385 5,533,315 3,928,496 37,610,794 2,429,804 7,097,903 9,527,707 9,017,025 8,506,344 7,995,663 7,484,981 6,508,647 39,512,660 20,770 62,310 83,080 83,080 83,079 83,080 83,080 2,247,602 2,579,921 17,726 53,177 70,903 70,902 70,902 70,902 70,902 1,993,373 2,276,981 - - - - - 1,963,184 5,889,552 7,852,736 24,836,144 22,872,959 20,909,775 18,946,591 - 87,565,469 0.25% 590,129 1,768,176 2,358,305 5,810,613 1,792,235 1,883,493 1,937,302 23,273,695 34,697,338 9,523 1,850,404 1,859,927 671,565 670,617 669,670 808,784 23,886,776 26,707,412 23.59% 2,347,678 14,015,924 16,363,602 4,358,417 2.53% 898 196,109 197,007 - 681,224 - - - - - - - - - - - 1,097,278 1,294,252 2,391,530 - - 5,039,641 127,042 - 952 381,125 168,039 508,167 168,991 7,769,157 1,945,985 - - - - - - - - - - - - 9,715,142 - 14,636,614 52,318,860 66,955,474 57,321,930 42,554,650 32,569,469 21,979,379 39,859,673 194,285,101 16,814,053 49,302,969 66,117,022 83,519,255 72,467,356 60,793,307 48,075,280 53,334,660 318,189,858 599 Consolidated Financial StatementsAppendix 6 Details of Assets and Liabilities in Foreign Currency This appendix forms an integral part of the Enersis Américas financial statements. The detail of assets and liabilities denominated in foreign currencies is the following: ASSETS Foreign Currency Functional Currency 12-31-2015 ThCh$ 12-31-2014 ThCh$ CURRENT ASSETS Cash and cash equivalents Current accounts receivable from related companies Total current assets other than assets classified as held for sale and discontinued operations NON CURRENT ASSETS Investments accounted for using the equity method Goodwill TOTAL NON-CURRENT ASSETS TOTAL ASSETS U.S. dollar U.S. dollar U.S. dollar U.S. dollar Argentine peso Chilean peso Argentine peso U.S. dollar U.S. dollar Colombian peso Argentine peso Brazilian real Brazilian real Colombian peso Peruvian Nuevo sol Argentine peso U.S. dollar Dólar Chilean peso Colombian peso Peruvian nuevo sol Argentine peso U.S. dollar U.S. dollar Chilean peso Chilean peso Peruvian nuevo sol Chilean peso Chilean peso Chilean peso Chilean peso Chilean peso Chilean peso Chilean peso Chilean peso Peso chileno 22,124,481 6,606,837 195,597 14,024,599 1,297,448 - - - - - - 22,124,481 22,124,481 29,737,877 29,494,468 243,409 362,139,818 6,675,472 202,286,652 9,687,963 138,737,427 4,752,304 - 391,877,695 414,002,176 334,548,745 294,009,266 413,009 28,750,530 1,058,646 4,206,734 6,110,560 - 14,039,935 14,039,935 348,588,680 348,588,680 61,063,049 27,794,762 32,795,615 472,672 439,500,128 8,527,161 258,398,340 11,045,730 135,136,616 6,220,966 20,171,315 500,563,177 849,151,857 Current Liabilities Non-current Liabilities Current Liabilities Non-current Liabilities 12-31-2015 12-31-2014 Foreign Currency Functional Currency 90 days or less 91 days to 1 year ThCh$ ThCh$ Total Current One to two years Two to three years Three to four years Four to five years Over five years ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 90 days or less 91 days to 1 year ThCh$ ThCh$ Total Current One to two Two to years three years Three to four years ThCh$ ThCh$ ThCh$ Four to five Over five years ThCh$ years ThCh$ Total no Current Total Non-current LIABILITES   Other current financial liabilities TOTAL LIABILITIES   U.S. dollar 39,350,461 220,635,283 259,985,744 34,667,125 36,469,943 15,535,676 24,641,590 36,451,631 147,765,965 27,290,627 194,911,470 222,202,097 264,874,981 71,011,720 60,603,646 42,762,853 804,987,364 1,244,240,564 U.S. dollar Chilean peso 3,015,734 186,297,709 189,313,443 U.S. dollar Brazilian real 20,770 62,310 83,080 39,170 83,080 39,170 83,079 39,170 83,080 39,170 843,993 83,080 2,247,602 1,000,673 12,530,333 155,604,278 168,134,611 191,134,280 28,196,301 28,198,962 28,201,795 746,470,766 1,022,202,104 2,579,921 17,726 53,177 70,903 70,902 70,902 70,902 70,902 1,993,373 2,276,981 U.S. dollar Peruvian nuevo sol 31,821,714 32,310,979 64,132,693 28,734,262 34,555,459 13,529,933 22,582,038 10,086,341 109,488,033 11,923,154 25,181,231 37,104,385 71,958,836 42,073,900 31,664,112 13,681,372 32,636,449 192,014,669 U.S. dollar Argentine peso 4,492,243 1,964,285 6,456,528 5,810,613 1,792,235 1,883,493 1,937,302 23,273,695 34,697,338 2,819,414 14,072,784 16,892,198 1,710,963 670,617 669,670 808,784 23,886,776 27,746,810 39,350,461 220,635,283 259,985,744 34,667,125 36,469,943 15,535,676 24,641,590 36,451,631 147,765,965 27,290,627 194,911,470 222,202,097 264,874,981 71,011,720 60,603,646 42,762,853 804,987,364 1,244,240,564 600 2015 Annual Report Enersis                                                                                                                                                                                                                                                                                                                           Appendix 6 Details of Assets and Liabilities in Foreign Currency This appendix forms an integral part of the Enersis Américas financial statements. The detail of assets and liabilities denominated in foreign currencies is the following: CURRENT ASSETS Cash and cash equivalents Current accounts receivable from related companies Total current assets other than assets classified as held for sale and discontinued operations NON CURRENT ASSETS Investments accounted for using the equity method Goodwill TOTAL NON-CURRENT ASSETS TOTAL ASSETS LIABILITES   Other current financial liabilities TOTAL LIABILITIES   ASSETS Foreign Currency Functional Currency 12-31-2015 ThCh$ 12-31-2014 ThCh$ U.S. dollar U.S. dollar U.S. dollar U.S. dollar Argentine peso Chilean peso Argentine peso U.S. dollar U.S. dollar Colombian peso Argentine peso Brazilian real Brazilian real Colombian peso Peruvian Nuevo sol Argentine peso U.S. dollar Dólar Chilean peso Colombian peso Peruvian nuevo sol Argentine peso U.S. dollar U.S. dollar Chilean peso Chilean peso Chilean peso Chilean peso Chilean peso Peruvian nuevo sol Chilean peso Chilean peso Chilean peso Chilean peso Chilean peso Peso chileno 22,124,481 6,606,837 195,597 14,024,599 1,297,448 - - - - - 22,124,481 22,124,481 29,737,877 - 29,494,468 243,409 362,139,818 6,675,472 202,286,652 9,687,963 138,737,427 4,752,304 - 391,877,695 414,002,176 334,548,745 294,009,266 413,009 28,750,530 1,058,646 4,206,734 6,110,560 - 14,039,935 14,039,935 348,588,680 348,588,680 61,063,049 27,794,762 32,795,615 472,672 439,500,128 8,527,161 258,398,340 11,045,730 135,136,616 6,220,966 20,171,315 500,563,177 849,151,857 Current Liabilities Non-current Liabilities Current Liabilities Non-current Liabilities 12-31-2015 12-31-2014 90 days or less 91 days to 1 year One to two Two to years three years Three to four years Four to five Over five years years Foreign Currency Functional Currency Total Current ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 90 days or less 91 days to 1 year ThCh$ ThCh$ Total Current Total no Current One to two years Two to three years Three to four years Four to five years Over five years ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Total Non-current U.S. dollar 39,350,461 220,635,283 259,985,744 34,667,125 36,469,943 15,535,676 24,641,590 36,451,631 147,765,965 27,290,627 194,911,470 222,202,097 264,874,981 71,011,720 60,603,646 42,762,853 804,987,364 1,244,240,564 U.S. dollar Chilean peso 3,015,734 186,297,709 189,313,443 U.S. dollar Brazilian real 20,770 62,310 83,080 39,170 83,080 39,170 83,079 39,170 83,080 39,170 843,993 83,080 2,247,602 1,000,673 12,530,333 155,604,278 168,134,611 191,134,280 28,196,301 28,198,962 28,201,795 746,470,766 1,022,202,104 2,579,921 17,726 53,177 70,903 70,902 70,902 70,902 70,902 1,993,373 2,276,981 U.S. dollar Peruvian nuevo sol 31,821,714 32,310,979 64,132,693 28,734,262 34,555,459 13,529,933 22,582,038 10,086,341 109,488,033 11,923,154 25,181,231 37,104,385 71,958,836 42,073,900 31,664,112 13,681,372 32,636,449 192,014,669 U.S. dollar Argentine peso 4,492,243 1,964,285 6,456,528 5,810,613 1,792,235 1,883,493 1,937,302 23,273,695 34,697,338 2,819,414 14,072,784 16,892,198 1,710,963 670,617 669,670 808,784 23,886,776 27,746,810 39,350,461 220,635,283 259,985,744 34,667,125 36,469,943 15,535,676 24,641,590 36,451,631 147,765,965 27,290,627 194,911,470 222,202,097 264,874,981 71,011,720 60,603,646 42,762,853 804,987,364 1,244,240,564 601 Consolidated Financial Statements                                                                                                                                                                                                                                                                                                                          Appendix 7 Additional Information Oficio Circular (Official Bulletin) No. 715 of February 3, 2012 This appendix forms an integral part of the Enersis Américas financial statements. a) Portfolio stratification - Trade and other receivables by time in arrears: Balance at 12-31-2015 Trade and Other Current Receivables Up-to-date Portfolio ThCh$ 1-30 days in arrears ThCh$ 31-60 days in arrears ThCh$ 61-90 days in arrears ThCh$ 91-120 days in arrears ThCh$ 121-150 days in arrears ThCh$ 151-180 days in arrears ThCh$ 181-210 days in arrears ThCh$ 211-250 days in arrears ThCh$ More than 251 days in arrears Total Current Total Non-current ThCh$ ThCh$ ThCh$ Trade receivables, gross Impairment provision 577,040,344 89,749,887 36,722,157 15,687,116 42,749,032 32,624,597 25,381,047 20,410,324 9,076,689 205,088,719 1,054,529,912 257,022,423 (1,402,962) (20,682,398) (1,571,631) (2,009,596) (27,939,987) (27,094,068) (19,937,434) (16,841,473) (7,231,279) (175,247,816) (299,958,644) Other accounts receivable, gross Impairment provision 334,685,900 (1,125,601) - - - - - - - - 334,685,900 141,673,441 (1,125,601) Total 909,197,681 69,067,489 35,150,526 13,677,520 14,809,045 5,530,529 5,443,613 3,568,851 1,845,410 29,840,903 1,088,131,567 398,695,864 Trade and Other Current Receivables Balance at 12-31-2014 Up-to-date Portfolio ThCh$ 1-30 days in arrears ThCh$ 31-60 days in arrears ThCh$ 61-90 days in arrears ThCh$ 91-120 days in arrears ThCh$ 121-150 days in arrears ThCh$ 151-180 days in arrears ThCh$ 181-210 days in arrears ThCh$ 211-250 days in arrears ThCh$ More than 251 days in arrears Total Current Total Non-current ThCh$ ThCh$ ThCh$ Trade receivables, gross Impairment provision 903,063,886 106,894,634 39,814,503 20,741,774 7,150,011 7,174,098 6,387,883 4,538,112 3,416,574 176,818,179 1,275,999,654 202,932,480 (1,280,373) (8,159,865) (2,408,150) (4,038,649) (2,288,401) (2,122,945) (2,003,467) (1,534,602) (1,360,517) (129,904,859) (155,101,828) Other accounts receivable, gross 568,028,235 Impairment provision (7,239,158) - - - - - - - - 568,028,235 88,709,195 (7,239,158) Total 1,462,572,590 98,734,769 37,406,353 16,703,125 4,861,610 5,051,153 4,384,416 3,003,510 2,056,057 46,913,320 1,681,686,903 291,641,675 - - - - - - - - - - - - - - - - - - - - - - - - 602 2015 Annual Report Enersis                                                             Appendix 7 Additional Information Oficio Circular (Official Bulletin) No. 715 of February 3, 2012 This appendix forms an integral part of the Enersis Américas financial statements. a) Portfolio stratification - Trade and other receivables by time in arrears: Balance at 12-31-2015 Trade and Other Current Receivables Up-to-date Portfolio ThCh$ 1-30 days in arrears ThCh$ 31-60 days in arrears ThCh$ 61-90 days in arrears ThCh$ 91-120 days in arrears ThCh$ 121-150 days in arrears ThCh$ 151-180 days in arrears ThCh$ 181-210 days in arrears ThCh$ 211-250 days in arrears ThCh$ More than 251 days in arrears Total Current Total Non-current ThCh$ ThCh$ ThCh$ Trade receivables, gross Impairment provision Other accounts receivable, gross Impairment provision 334,685,900 (1,125,601) 577,040,344 89,749,887 36,722,157 15,687,116 42,749,032 32,624,597 25,381,047 20,410,324 9,076,689 205,088,719 1,054,529,912 257,022,423 (1,402,962) (20,682,398) (1,571,631) (2,009,596) (27,939,987) (27,094,068) (19,937,434) (16,841,473) (7,231,279) (175,247,816) (299,958,644) - - - - - - - - - - - 334,685,900 141,673,441 (1,125,601) - Total 909,197,681 69,067,489 35,150,526 13,677,520 14,809,045 5,530,529 5,443,613 3,568,851 1,845,410 29,840,903 1,088,131,567 398,695,864 Trade and Other Current Receivables 1-30 days in arrears ThCh$ 31-60 days in arrears ThCh$ 61-90 days in arrears ThCh$ 91-120 days in arrears ThCh$ 121-150 days in arrears ThCh$ 151-180 days in arrears ThCh$ 181-210 days in arrears ThCh$ 211-250 days in arrears ThCh$ More than 251 days in arrears Total Current Total Non-current ThCh$ ThCh$ ThCh$ Trade receivables, gross Impairment provision Other accounts receivable, gross 568,028,235 Impairment provision (7,239,158) 903,063,886 106,894,634 39,814,503 20,741,774 7,150,011 7,174,098 6,387,883 4,538,112 3,416,574 176,818,179 1,275,999,654 202,932,480 (1,280,373) (8,159,865) (2,408,150) (4,038,649) (2,288,401) (2,122,945) (2,003,467) (1,534,602) (1,360,517) (129,904,859) (155,101,828) - - - - - - - - - - - 568,028,235 88,709,195 (7,239,158) - Total 1,462,572,590 98,734,769 37,406,353 16,703,125 4,861,610 5,051,153 4,384,416 3,003,510 2,056,057 46,913,320 1,681,686,903 291,641,675 Balance at 12-31-2014 Up-to-date Portfolio ThCh$ - - - - - - - - - - - - - - - - 603 Consolidated Financial Statements                                                            - By type of portfolio: Time in Arrears Non-renegotiated Portfolio Renegotiated Portfolio Total Gross Portfolio Non-renegotiated Portfolio Renegotiated Portfolio Total Gross Portfolio Number of Clients Gross Amount ThCh$ Number of Clients Gross Amount ThCh$ Number of Clients Gross Amount ThCh$ Number of Clients Amount Number of Clients Amount Number of Clients Balance at 12-31-2015 Balance at 12-31-2014 9,496,241 804,676,526 195,019 29,386,241 9,691,260 834,062,767 10,244,620 1,091,588,812 14,407,554 10,337,947 1,105,996,366 2,104,270 85,980,622 80,275 3,769,265 2,184,545 89,749,887 2,187,327 106,894,634 Up-to-date 1 to 30 days 31 to 60 days 61 to 90 days 91 to 120 days 121 to 150 days 151 to 180 days 181 to 210 days 211 to 250 days 285,256 34,798,871 77,855 14,036,045 177,160 41,282,854 172,778 31,272,010 111,678 24,222,662 94,221 19,312,808 55,382 8,049,056 6,727 7,552 5,840 6,289 6,415 4,390 4,688 8,092 1,923,286 291,983 36,722,157 1,651,071 85,407 15,687,116 1,466,178 183,000 42,749,032 1,352,587 179,067 32,624,597 1,158,385 118,093 25,381,047 1,097,516 1,027,633 98,611 60,070 20,410,324 9,076,689 3,472,728 626,792 205,088,719 More than 251 days 618,700 201,615,991 Gross ThCh$ 101,089,273 36,225,884 18,833,430 5,580,951 5,776,635 5,103,607 3,462,029 2,455,802 2,101,665 408,941 87,712 58,397 52,163 39,113 24,086 20,666 Gross ThCh$ 5,805,361 3,588,619 1,908,344 1,569,060 1,397,463 1,284,276 1,076,083 960,772 Gross Amount ThCh$ 39,814,503 20,741,774 7,150,011 7,174,098 6,387,883 4,538,112 3,416,574 438,222 111,278 72,724 66,295 48,729 39,593 31,399 93,327 85,662 29,281 23,566 14,327 14,132 9,616 15,507 10,733 18,770 408,132 148,793,724 28,024,455 426,902 176,818,179 Total 13,193,541 1,265,247,445 325,287 46,304,890 13,518,828 1,311,552,335 13,445,495 1,418,910,147 314,921 60,021,987 13,760,416 1,478,932,134 b) Portfolio in default and in legal collection process CPortfolio in Default and in Legal Collection Process Balance at 12-31-2015 Balance at 12-31-2014 Number of Clients Amount ThCh$ Number of Clients Amount ThCh$ Notes receivable in default 1,872,073 23,354,556 164,145 15,922,688 Notes receivable in legal collection process (*) 4,219 16,044,580 9,983 13,828,106 Total 1,876,292 39,399,136 174,128 29,750,794 (*) Legal collections are included in the portfolio in arrears. c) Provisions and write-offs Provisions and Write-offs Provision for non-renegotiated portfolio Provision for renegotiated portfolio Write-offs during the period Recoveries during the period Total Balance at 12-31-2015 ThCh$ 25,846,624 (1,029,013) 23,480,578 14,962,099 63,260,288 12-31-2014 ThCh$ 22,178,152 669,988 19,013,041 - 41,861,181 604 2015 Annual Report Enersis                                   - By type of portfolio: Up-to-date 1 to 30 days 31 to 60 days 61 to 90 days 91 to 120 days 121 to 150 days 151 to 180 days 181 to 210 days 211 to 250 days process Time in Arrears Non-renegotiated Portfolio Renegotiated Portfolio Total Gross Portfolio Non-renegotiated Portfolio Renegotiated Portfolio Total Gross Portfolio Number of Clients Gross Amount ThCh$ Number of Clients Gross Amount ThCh$ Number of Clients Gross Amount ThCh$ Number of Clients Amount Number of Clients Amount Number of Clients Gross Gross ThCh$ ThCh$ Gross Amount ThCh$ Balance at 12-31-2015 Balance at 12-31-2014 9,496,241 804,676,526 195,019 29,386,241 9,691,260 834,062,767 10,244,620 1,091,588,812 2,101,665 408,941 87,712 58,397 52,163 39,113 24,086 20,666 101,089,273 36,225,884 18,833,430 5,580,951 5,776,635 5,103,607 3,462,029 2,455,802 More than 251 days 618,700 201,615,991 3,472,728 626,792 205,088,719 408,132 148,793,724 2,104,270 85,980,622 80,275 3,769,265 2,184,545 89,749,887 285,256 34,798,871 77,855 14,036,045 177,160 41,282,854 172,778 31,272,010 111,678 24,222,662 94,221 19,312,808 55,382 8,049,056 1,923,286 291,983 36,722,157 1,651,071 85,407 15,687,116 1,466,178 183,000 42,749,032 1,352,587 179,067 32,624,597 1,158,385 118,093 25,381,047 1,097,516 1,027,633 98,611 60,070 20,410,324 9,076,689 6,727 7,552 5,840 6,289 6,415 4,390 4,688 8,092 93,327 85,662 29,281 23,566 14,327 14,132 9,616 15,507 10,733 18,770 14,407,554 10,337,947 1,105,996,366 5,805,361 3,588,619 1,908,344 1,569,060 1,397,463 1,284,276 1,076,083 960,772 2,187,327 106,894,634 438,222 111,278 72,724 66,295 48,729 39,593 31,399 39,814,503 20,741,774 7,150,011 7,174,098 6,387,883 4,538,112 3,416,574 28,024,455 426,902 176,818,179 Total 13,193,541 1,265,247,445 325,287 46,304,890 13,518,828 1,311,552,335 13,445,495 1,418,910,147 314,921 60,021,987 13,760,416 1,478,932,134 b) Portfolio in default and in legal collection d) Number and amount of operations Balance at 12-31-2015 12-31-2014 Number and Amount 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 ThCh$ ThCh$ ThCh$ ThCh$ Impairment provision and recoveries Number of operations Value of operations, in ThCh$ 199,988 11,043,157 557,363 1,889,698 39,779,710 22,848,140 1,889,698 22,848,140 CPortfolio in Default and in Legal Collection Process Balance at 12-31-2015 Balance at 12-31-2014 Number of Clients Amount ThCh$ Number of Clients Amount ThCh$ Notes receivable in default 1,872,073 23,354,556 164,145 15,922,688 Notes receivable in legal collection process (*) 4,219 16,044,580 9,983 13,828,106 Total 1,876,292 39,399,136 174,128 29,750,794 (*) Legal collections are included in the portfolio in arrears. c) Provisions and write-offs Provisions and Write-offs Provision for non-renegotiated portfolio Provision for renegotiated portfolio Write-offs during the period Recoveries during the period Total Balance at 12-31-2015 ThCh$ 25,846,624 (1,029,013) 23,480,578 14,962,099 63,260,288 12-31-2014 ThCh$ 22,178,152 669,988 19,013,041 - 41,861,181 605 Consolidated Financial Statements                                  Appendix 7.1 Supplementary Information on Trade Receivables This appendix forms an integral part of the Enersis Américas financial statements. a) Portfolio stratification - Trade receivables by time in arrears: Balance at 12-31-2015 Trade Receivables Trade receivables, generation and transmission -Large clients -Institutional clients -Others Impairment provision Up-to-date Portfolio ThCh$ 1-30 days in arrears ThCh$ 214,520,868 10,315,795 105,350,555 9,422,903 76,797,290 32,373,023 (212,623) 31-60 days in arrears ThCh$ 3,889,661 3,835,624 - - 892,892 54,037 - - - - Non-invoiced services 89,723,981 61-90 days in arrears ThCh$ 3,959,399 3,804,996 - 154,403 (363,070) - 91-120 days in arrears ThCh$ 3,758,589 3,734,126 - 24,463 - - 121-150 days in arrears ThCh$ 151-180 days in arrears ThCh$ 181-210 days in arrears ThCh$ 211-250 days in arrears ThCh$ More than 251 days in arrears Total Current ThCh$ ThCh$ Total Non- current ThCh$ 3,671,364 3,641,098 3,869,173 3,550,857 5,219,854 5,192,924 118,598 75,322 47,438,345 296,761,646 230,330,033 4,367,646 142,976,051 30,266 318,316 26,930 43,276 43,070,699 76,988,305 3,211,126 (415,609) (2,735,412) (45,093,112) (48,819,826) - - - - - - - - - - - 89,723,981 32,993,708 - 76,797,290 227,118,907 Invoiced services 124,796,887 10,315,795 3,889,661 3,959,399 3,758,589 3,671,364 3,869,173 5,219,854 118,598 47,438,345 207,037,665 197,336,325 Trade receivables, distribution 362,519,476 79,434,092 32,832,496 11,727,717 38,990,443 28,953,233 21,511,874 15,190,470 8,958,091 157,650,374 757,768,266 26,692,390 -Mass-market clients 217,119,041 56,222,800 21,046,214 7,845,767 27,350,487 25,742,028 18,419,905 12,598,396 6,157,123 116,019,609 508,521,370 13,043,874 -Large clients -Institutional clients Impairment provision 99,833,365 12,867,396 45,567,070 10,343,896 6,598,117 5,188,165 1,338,886 1,095,541 2,543,064 10,544,415 996,107 2,215,098 1,253,697 1,838,272 767,947 850,748 21,559,120 147,160,924 3,424,933 1,824,127 1,950,220 20,071,645 102,085,972 10,223,583 (1,190,339) (20,682,398) (1,571,631) (1,646,526) (27,939,987) (27,094,068) (19,521,825) (14,106,061) (7,231,279) (130,154,704) (251,138,818) Non-invoiced services 173,794,483 - - - - - - - - - 173,794,483 Invoiced services 188,724,993 79,434,092 32,832,496 11,727,717 38,990,443 28,953,233 21,511,874 15,190,470 8,958,091 157,650,374 583,973,783 26,692,390 Total Trade Receivables, Gross 577,040,344 89,749,887 36,722,157 15,687,116 42,749,032 32,624,597 25,381,047 20,410,324 9,076,689 205,088,719 1,054,529,912 257,022,423 Total Impairment Provision (1,402,962) (20,682,398) (1,571,631) (2,009,596) (27,939,987) (27,094,068) (19,937,434) (16,841,473) (7,231,279) (175,247,816) (299,958,644) Total Trade Receivables, Net 575,637,382 69,067,489 35,150,526 13,677,520 14,809,045 5,530,529 5,443,613 3,568,851 1,845,410 29,840,903 754,571,268 257,022,423 Since not all of our commercial databases in our Group’s different subsidiaries distinguish whether the final electricity service consumer is a natural or legal person, the main management segmentation used by all the subsidiaries to monitor and follow up on trade receivables is the following: - Mass-market clients - Large clients - Institutional clients 606 2015 Annual Report Enersis - - - - -                                                                                                       Appendix 7.1 Supplementary Information on Trade Receivables This appendix forms an integral part of the Enersis Américas financial statements. a) Portfolio stratification - Trade receivables by time in arrears: Balance at 12-31-2015 Trade Receivables Trade receivables, generation and transmission -Large clients -Institutional clients -Others Impairment provision 76,797,290 32,373,023 (212,623) Non-invoiced services 89,723,981 Trade receivables, distribution -Large clients -Institutional clients Impairment provision Up-to-date Portfolio ThCh$ 1-30 days in arrears ThCh$ 31-60 days in arrears ThCh$ 61-90 days in arrears ThCh$ 91-120 days in arrears ThCh$ 121-150 days in arrears ThCh$ 151-180 days in arrears ThCh$ 181-210 days in arrears ThCh$ 214,520,868 10,315,795 105,350,555 9,422,903 3,889,661 3,835,624 3,959,399 3,804,996 3,758,589 3,734,126 3,671,364 3,641,098 - 3,869,173 3,550,857 - 5,219,854 5,192,924 - 211-250 days in arrears ThCh$ 118,598 75,322 - More than 251 days in arrears Total Current ThCh$ ThCh$ Total Non- current ThCh$ 47,438,345 296,761,646 230,330,033 4,367,646 142,976,051 - - 76,797,290 227,118,907 892,892 54,037 24,463 30,266 318,316 26,930 43,276 43,070,699 76,988,305 3,211,126 - - (415,609) (2,735,412) - - - - (45,093,112) (48,819,826) - - 89,723,981 32,993,708 - - - - - - 154,403 (363,070) - - - - - Invoiced services 124,796,887 10,315,795 3,889,661 3,959,399 3,758,589 3,671,364 3,869,173 5,219,854 118,598 47,438,345 207,037,665 197,336,325 -Mass-market clients 217,119,041 56,222,800 21,046,214 7,845,767 27,350,487 25,742,028 18,419,905 12,598,396 6,157,123 116,019,609 508,521,370 13,043,874 362,519,476 79,434,092 32,832,496 11,727,717 38,990,443 28,953,233 21,511,874 15,190,470 8,958,091 157,650,374 757,768,266 26,692,390 99,833,365 12,867,396 45,567,070 10,343,896 6,598,117 5,188,165 1,338,886 1,095,541 2,543,064 10,544,415 996,107 2,215,098 1,253,697 1,838,272 767,947 850,748 21,559,120 147,160,924 3,424,933 1,824,127 1,950,220 20,071,645 102,085,972 10,223,583 (1,190,339) (20,682,398) (1,571,631) (1,646,526) (27,939,987) (27,094,068) (19,521,825) (14,106,061) (7,231,279) (130,154,704) (251,138,818) Non-invoiced services 173,794,483 - - - - - - - - - 173,794,483 - - Invoiced services 188,724,993 79,434,092 32,832,496 11,727,717 38,990,443 28,953,233 21,511,874 15,190,470 8,958,091 157,650,374 583,973,783 26,692,390 Total Trade Receivables, Gross 577,040,344 89,749,887 36,722,157 15,687,116 42,749,032 32,624,597 25,381,047 20,410,324 9,076,689 205,088,719 1,054,529,912 257,022,423 Total Impairment Provision (1,402,962) (20,682,398) (1,571,631) (2,009,596) (27,939,987) (27,094,068) (19,937,434) (16,841,473) (7,231,279) (175,247,816) (299,958,644) - Total Trade Receivables, Net 575,637,382 69,067,489 35,150,526 13,677,520 14,809,045 5,530,529 5,443,613 3,568,851 1,845,410 29,840,903 754,571,268 257,022,423 Since not all of our commercial databases in our Group’s different subsidiaries distinguish whether the final electricity service consumer is a natural or legal person, the main management segmentation used by all the subsidiaries to monitor and follow up on trade receivables is the following: - Mass-market clients - Large clients - Institutional clients 607 Consolidated Financial Statements                                                                                                      Trade Receivables Trade receivables, generation and transmission -Large clients -Institutional clients -Others Impairment provision Non-invoiced services Invoiced services Balance at 12-31-2014 Up-to-date Portfolio ThCh$ 1-30 days in arrears ThCh$ 372,017,282 14,185,584 293,311,567 6,649,258 31-60 days in arrears ThCh$ 2,368,035 2,333,183 - 48,353,634 30,352,081 (388,459) 211,809,086 - 7,536,326 34,852 - - - - 61-90 days in arrears ThCh$ 826,795 563,008 - 263,787 (169,056) - 91-120 days in arrears ThCh$ 121-150 days in arrears ThCh$ 151-180 days in arrears ThCh$ 181-210 days in arrears ThCh$ 211-250 days in arrears ThCh$ More than 251 days in arrears Total Current ThCh$ ThCh$ Total Non- current ThCh$ 259,556 228,410 101,591 77,466 386,044 265,238 69,185 65,525 140,611 136,823 58,775,408 449,130,091 180,858,354 3,653,609 307,284,087 31,146 24,125 120,806 3,660 3,788 55,121,799 93,492,370 8,768,351 - - - - - - - - - - - - - - - - 48,353,634 172,090,003 (56,435,060) (56,992,575) - 211,809,086 1,045,832 160,208,196 14,185,584 2,368,035 826,795 259,556 101,591 386,044 69,185 140,611 58,775,408 237,321,005 179,812,522 Trade receivables, distribution 531,046,604 92,709,050 37,446,468 19,914,979 -Mass-market clients -Large clients -Institutional clients Impairment provision Non-invoiced services Invoiced services 363,514,047 66,110,431 24,474,607 122,493,330 18,645,276 6,038,961 6,539,339 2,946,789 45,039,227 7,953,343 6,932,900 10,428,851 (891,914) (8,159,865) (2,408,150) (3,869,593) (2,288,401) (2,122,945) (2,003,467) (1,534,602) (1,360,517) (73,469,799) (98,109,253) 317,688,170 - - - - - - - - - 317,688,170 217,794,795 92,709,050 37,446,468 19,914,979 6,890,455 7,072,507 6,001,839 4,468,927 3,275,963 118,042,771 513,617,754 22,074,126 6,890,455 4,783,444 713,261 1,393,750 7,072,507 4,107,710 1,068,570 1,896,227 6,001,839 3,337,309 1,460,736 1,203,794 4,468,927 2,388,662 1,289,811 790,454 3,275,963 118,042,771 826,869,563 22,074,126 1,846,646 49,452,156 526,554,351 11,102,240 664,518 764,799 33,142,022 188,463,274 35,448,593 111,851,938 3,153,611 7,818,275 Total Trade Receivables, Gross Total Impairment Provision 903,063,886 106,894,634 39,814,503 20,741,774 7,150,011 7,174,098 6,387,883 4,538,112 3,416,574 176,818,179 1,275,999,654 202,932,480 (1,280,373) (8,159,865) (2,408,150) (4,038,649) (2,288,401) (2,122,945) (2,003,467) (1,534,602) (1,360,517) (129,904,859) (155,101,828) Total Trade Receivables, Net 901,783,513 98,734,769 37,406,353 16,703,125 4,861,610 5,051,153 4,384,416 3,003,510 2,056,057 46,913,320 1,120,897,826 202,932,480 608 2015 Annual Report Enersis - - - - -                                                                                                             Balance at 12-31-2014 Trade Receivables Trade receivables, generation and transmission -Large clients -Institutional clients -Others Impairment provision Non-invoiced services Invoiced services -Mass-market clients -Large clients -Institutional clients Impairment provision Non-invoiced services Invoiced services Up-to-date Portfolio ThCh$ 1-30 days in arrears ThCh$ 31-60 days in arrears ThCh$ 372,017,282 14,185,584 293,311,567 6,649,258 2,368,035 2,333,183 48,353,634 30,352,081 (388,459) 211,809,086 7,536,326 34,852 - - - - - - 61-90 days in arrears ThCh$ 826,795 563,008 263,787 (169,056) - - 91-120 days in arrears ThCh$ 259,556 228,410 - 31,146 - - 121-150 days in arrears ThCh$ 101,591 77,466 - 151-180 days in arrears ThCh$ 386,044 265,238 - 24,125 120,806 - - - - 181-210 days in arrears ThCh$ 69,185 65,525 - 3,660 - - 211-250 days in arrears ThCh$ 140,611 136,823 - More than 251 days in arrears Total Current ThCh$ ThCh$ Total Non- current ThCh$ 58,775,408 449,130,091 180,858,354 3,653,609 307,284,087 - - 48,353,634 172,090,003 3,788 55,121,799 93,492,370 8,768,351 - - (56,435,060) (56,992,575) - - 211,809,086 1,045,832 160,208,196 14,185,584 2,368,035 826,795 259,556 101,591 386,044 69,185 140,611 58,775,408 237,321,005 179,812,522 Trade receivables, distribution 531,046,604 92,709,050 37,446,468 19,914,979 363,514,047 66,110,431 24,474,607 122,493,330 18,645,276 6,038,961 6,539,339 2,946,789 45,039,227 7,953,343 6,932,900 10,428,851 6,890,455 4,783,444 713,261 1,393,750 7,072,507 4,107,710 1,068,570 1,896,227 6,001,839 3,337,309 1,460,736 1,203,794 4,468,927 2,388,662 1,289,811 790,454 3,275,963 118,042,771 826,869,563 22,074,126 1,846,646 49,452,156 526,554,351 11,102,240 664,518 764,799 33,142,022 188,463,274 35,448,593 111,851,938 3,153,611 7,818,275 (891,914) (8,159,865) (2,408,150) (3,869,593) (2,288,401) (2,122,945) (2,003,467) (1,534,602) (1,360,517) (73,469,799) (98,109,253) 317,688,170 - - - - - - - - - 317,688,170 - - 217,794,795 92,709,050 37,446,468 19,914,979 6,890,455 7,072,507 6,001,839 4,468,927 3,275,963 118,042,771 513,617,754 22,074,126 Total Trade Receivables, Gross Total Impairment Provision 903,063,886 106,894,634 39,814,503 20,741,774 7,150,011 7,174,098 6,387,883 4,538,112 3,416,574 176,818,179 1,275,999,654 202,932,480 (1,280,373) (8,159,865) (2,408,150) (4,038,649) (2,288,401) (2,122,945) (2,003,467) (1,534,602) (1,360,517) (129,904,859) (155,101,828) - Total Trade Receivables, Net 901,783,513 98,734,769 37,406,353 16,703,125 4,861,610 5,051,153 4,384,416 3,003,510 2,056,057 46,913,320 1,120,897,826 202,932,480 609 Consolidated Financial Statements                                                                                                            - By type of portfolio: Type of Portfolio GENERATION AND TRANSMISSION Non-renegotiated portfolio -Large clients -Institutional clients -Others Renegotiated portfolio -Large clients -Institutional clients -Others DISTRIBUTION Balance at 12-31-2015 Up-to-date Portfolio ThCh$ 1-30 days in arrears ThCh$ 31-60 days in arrears ThCh$ 209,710,717 10,292,925 105,350,555 9,422,903 3,835,624 3,835,624 76,797,290 27,562,872 4,810,151 - - - 870,022 22,870 - - - - 54,037 - - 61-90 days in arrears ThCh$ 3,934,142 3,804,997 - 129,145 25,257 - - 4,810,151 22,870 54,037 25,257 24,463 30,266 29,548 26,930 43,276 390,045 5,456,843 Non-renegotiated portfolio 360,318,915 75,687,697 30,963,247 10,101,903 37,548,728 27,630,912 20,383,037 14,119,884 7,973,734 154,567,692 739,295,749 -Mass-market clients -Large clients -Institutional clients Renegotiated portfolio -Mass-market clients -Large clients -Institutional clients 215,638,939 54,316,549 19,859,514 99,340,127 11,546,722 45,339,849 2,200,561 1,480,102 493,237 227,222 9,824,426 3,746,395 1,906,252 1,320,673 519,470 6,337,137 4,766,596 1,869,249 1,186,699 260,980 421,570 6,818,125 1,122,596 2,161,182 1,625,814 1,027,641 216,290 381,883 26,452,336 24,953,953 17,774,987 12,008,723 5,629,594 114,472,369 497,925,089 936,511 10,159,881 1,441,715 898,152 159,030 384,533 831,176 1,845,783 1,322,321 788,075 164,931 369,315 1,130,633 1,477,417 1,128,837 644,917 123,064 360,856 643,942 1,467,219 1,070,586 589,672 124,005 356,909 736,404 21,130,377 143,755,625 1,607,736 18,964,946 97,615,035 984,357 527,529 114,344 342,484 3,082,683 18,472,518 1,547,241 10,596,280 428,743 1,106,699 3,405,297 4,470,941 Total Portfolio, Gross 577,040,344 89,749,887 36,722,157 15,687,116 42,749,032 32,624,597 25,381,047 20,410,324 9,076,689 205,088,719 1,054,529,912 Type of Portfolio GENERATION AND TRANSMISSION Non-renegotiated portfolio -Large clients -Institutional clients -Others Renegotiated portfolio -Large clients -Institutional clients -Others DISTRIBUTION Balance at 12-31-2014 Up-to-date Portfolio ThCh$ 1-30 days in arrears ThCh$ 363,410,191 14,146,157 293,422,775 6,649,258 48,353,634 21,633,782 8,718,298 - - - 7,496,899 39,427 - - 31-60 days in arrears ThCh$ 2,333,183 2,333,183 - - 34,852 - - 61-90 days in arrears ThCh$ 782,547 563,008 - 219,539 44,248 - - 8,718,298 39,427 34,852 44,248 31,146 24,125 120,806 3,660 3,788 432,319 9,452,669 Non-renegotiated portfolio 525,246,141 86,943,116 33,892,701 18,050,883 - - - - - - - - 91-120 days in arrears ThCh$ 121-150 days in arrears ThCh$ 151-180 days in arrears ThCh$ 181-210 days in arrears ThCh$ 211-250 days in arrears ThCh$ More than 251 days in arrears ThCh$ Total Current ThCh$ 3,734,126 3,734,126 3,641,098 3,641,098 3,839,625 3,550,857 5,192,924 5,192,924 75,322 75,322 47,048,299 291,304,802 4,367,645 142,976,051 24,463 30,266 26,930 43,276 390,045 5,456,843 76,797,290 42,680,654 71,531,461 - - - - - - - - - - - - - - - - - - - - - - - - - - 91-120 days in arrears ThCh$ 228,410 228,410 121-150 days in arrears ThCh$ 77,466 77,466 181-210 days in arrears ThCh$ 65,525 65,525 211-250 days in arrears ThCh$ More than 251 days in arrears ThCh$ Total Current ThCh$ 136,823 136,823 58,343,089 439,788,629 3,653,609 307,395,295 48,353,634 54,689,480 84,039,700 31,146 24,125 120,806 3,660 3,788 432,319 9,452,669 5,352,541 3,690,220 627,109 1,035,212 1,537,914 1,093,224 86,152 358,538 5,699,169 3,176,315 977,296 1,545,558 1,373,338 931,394 91,274 350,670 1,163,470 1,072,423 3,396,504 1,727,709 1,219,723 449,072 660,954 70,088 341,381 2,318,979 90,450,635 776,189,038 1,291,303 37,131,908 498,627,432 595,298 432,378 956,984 555,345 69,219 32,199,320 184,456,270 21,119,407 93,105,336 27,592,136 50,569,318 12,320,248 27,815,713 942,702 4,007,003 332,420 14,329,186 18,746,602 - - - - - - - - 288,768 29,548 - - - 151-180 days in arrears ThCh$ 265,238 265,238 - - - - 4,838,369 2,587,866 1,390,709 859,794 749,443 70,027 344,000 -Mass-market clients -Large clients -Institutional clients Renegotiated portfolio -Mass-market clients -Large clients -Institutional clients 5,224,924 2,818,594 10,007,365 1,864,096 1,314,417 128,194 421,485 44,393,095 5,689,256 3,845,451 1,197,671 646,134 5,739,993 5,789,036 3,553,767 2,110,934 298,969 7,474,419 5,765,934 4,234,303 1,052,707 359,557,387 61,876,128 22,363,672 121,295,659 17,592,569 478,924 1,143,864 Total Portfolio, Gross 903,063,886 106,894,634 39,814,503 20,741,774 7,150,011 7,174,098 6,387,883 4,538,112 3,416,574 176,818,179 1,275,999,654 610 2015 Annual Report Enersis         - By type of portfolio: Balance at 12-31-2015 Type of Portfolio GENERATION AND TRANSMISSION Non-renegotiated portfolio Up-to-date Portfolio ThCh$ 1-30 days in arrears ThCh$ 31-60 days in arrears ThCh$ 209,710,717 10,292,925 105,350,555 9,422,903 3,835,624 3,835,624 3,934,142 3,804,997 76,797,290 27,562,872 4,810,151 - - 870,022 22,870 - - - 54,037 - - - - 91-120 days in arrears ThCh$ 121-150 days in arrears ThCh$ 3,734,126 3,734,126 3,641,098 3,641,098 - - - - 24,463 30,266 - - - - 151-180 days in arrears ThCh$ 3,839,625 3,550,857 - 288,768 29,548 - - 181-210 days in arrears ThCh$ 5,192,924 5,192,924 - - 211-250 days in arrears ThCh$ 75,322 75,322 - - More than 251 days in arrears ThCh$ Total Current ThCh$ 47,048,299 291,304,802 4,367,645 142,976,051 - 76,797,290 42,680,654 71,531,461 26,930 43,276 390,045 5,456,843 - - - - - - - - 4,810,151 22,870 54,037 25,257 24,463 30,266 29,548 26,930 43,276 390,045 5,456,843 Non-renegotiated portfolio 360,318,915 75,687,697 30,963,247 10,101,903 37,548,728 27,630,912 20,383,037 14,119,884 7,973,734 154,567,692 739,295,749 215,638,939 54,316,549 19,859,514 26,452,336 24,953,953 17,774,987 12,008,723 5,629,594 114,472,369 497,925,089 Total Portfolio, Gross 577,040,344 89,749,887 36,722,157 15,687,116 42,749,032 32,624,597 25,381,047 20,410,324 9,076,689 205,088,719 1,054,529,912 936,511 10,159,881 1,441,715 898,152 159,030 384,533 831,176 1,845,783 1,322,321 788,075 164,931 369,315 1,130,633 1,477,417 1,128,837 644,917 123,064 360,856 643,942 1,467,219 1,070,586 589,672 124,005 356,909 736,404 21,130,377 143,755,625 1,607,736 18,964,946 97,615,035 984,357 527,529 114,344 342,484 3,082,683 18,472,518 1,547,241 10,596,280 428,743 1,106,699 3,405,297 4,470,941 91-120 days in arrears ThCh$ 228,410 228,410 - - 121-150 days in arrears ThCh$ 77,466 77,466 - - 151-180 days in arrears ThCh$ 265,238 265,238 - - 181-210 days in arrears ThCh$ 65,525 65,525 - - 211-250 days in arrears ThCh$ More than 251 days in arrears ThCh$ Total Current ThCh$ 136,823 136,823 58,343,089 439,788,629 3,653,609 307,395,295 - - - 48,353,634 54,689,480 84,039,700 31,146 24,125 120,806 3,660 3,788 432,319 9,452,669 - - - - - - - - - - - - - - 8,718,298 39,427 34,852 44,248 31,146 24,125 120,806 3,660 3,788 432,319 9,452,669 Non-renegotiated portfolio 525,246,141 86,943,116 33,892,701 18,050,883 5,352,541 3,690,220 627,109 1,035,212 1,537,914 1,093,224 86,152 358,538 5,699,169 3,176,315 977,296 1,545,558 1,373,338 931,394 91,274 350,670 4,838,369 2,587,866 1,390,709 859,794 3,396,504 1,727,709 1,219,723 449,072 1,163,470 1,072,423 749,443 70,027 344,000 660,954 70,088 341,381 2,318,979 90,450,635 776,189,038 1,291,303 37,131,908 498,627,432 595,298 432,378 956,984 555,345 69,219 32,199,320 184,456,270 21,119,407 93,105,336 27,592,136 50,569,318 12,320,248 27,815,713 942,702 4,007,003 332,420 14,329,186 18,746,602 Total Portfolio, Gross 903,063,886 106,894,634 39,814,503 20,741,774 7,150,011 7,174,098 6,387,883 4,538,112 3,416,574 176,818,179 1,275,999,654 611 -Large clients -Institutional clients -Others Renegotiated portfolio -Large clients -Institutional clients -Others DISTRIBUTION -Mass-market clients -Large clients -Institutional clients Renegotiated portfolio -Mass-market clients -Large clients -Institutional clients -Large clients -Institutional clients -Others Renegotiated portfolio -Large clients -Institutional clients -Others DISTRIBUTION -Mass-market clients -Large clients -Institutional clients Renegotiated portfolio -Mass-market clients -Large clients -Institutional clients Balance at 12-31-2014 Type of Portfolio GENERATION AND TRANSMISSION Non-renegotiated portfolio 99,340,127 11,546,722 45,339,849 2,200,561 1,480,102 493,237 227,222 9,824,426 3,746,395 1,906,252 1,320,673 519,470 6,337,137 4,766,596 1,869,249 1,186,699 260,980 421,570 Up-to-date Portfolio ThCh$ 1-30 days in arrears ThCh$ 31-60 days in arrears ThCh$ 363,410,191 14,146,157 293,422,775 6,649,258 2,333,183 2,333,183 48,353,634 21,633,782 8,718,298 - - 7,496,899 39,427 - - - 34,852 - - - - 359,557,387 61,876,128 22,363,672 121,295,659 17,592,569 44,393,095 5,689,256 3,845,451 1,197,671 646,134 7,474,419 5,765,934 4,234,303 1,052,707 478,924 1,143,864 5,739,993 5,789,036 3,553,767 2,110,934 298,969 61-90 days in arrears ThCh$ 129,145 25,257 - - - 6,818,125 1,122,596 2,161,182 1,625,814 1,027,641 216,290 381,883 61-90 days in arrears ThCh$ 782,547 563,008 219,539 44,248 - - - 5,224,924 2,818,594 10,007,365 1,864,096 1,314,417 128,194 421,485 Consolidated Financial Statements        Appendix 7.2 Estimated Sales and Purchases of Energy and Capacity This appendix forms an integral part of the Enersis Américas financial statements. Country COLOMBIA PERU ARGENTINA BRAZIL CHILE TOTAL 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 Energy and capacity Energy and capacity Tolls Energy and capacity Tolls Energy and capacity Tolls Energy and capacity Tolls Tolls Energy and capacity Energy and capacity Energy and capacity Energy and capacity Energy and capacity Energy and capacity Energy and capacity Tolls Tolls Tolls Tolls Tolls Tolls Tolls 312,398 231,744 256,708 85,174 - - - - - - - 5,967 - - 287,822 33,766 312,398 237,711 544,530 118,940 91,292,198 3,767,410 84,133,181 3,619,524 39,545,565 5,091,255 33,292,452 4,920,460 26,291,133 114,662 35,563,152 2,247,911 95,783,612 4,867,959 84,383,373 5,916,811 - 250,102,288 10,403,137 248,609,678 13,841,286 487,474,445 27,107,843 - - - - - - - - - - - - 216,908,877 28,418,337 - - 216,908,877 28,418,337 - - 91,604,596 3,999,154 84,389,889 3,704,698 39,545,565 5,091,255 33,292,452 4,920,460 21,988,302 114,662 35,563,152 2,247,911 95,783,612 4,873,926 84,383,373 5,916,811 216,908,877 28,418,337 250,390,110 10,436,903 465,830,953 42,497,334 488,018,976 27,226,783 43,386 85,780 - 52,558 - - - - - 21,741,708 5,032,612 28,040,330 6,514,495 25,029,210 4,373,789 20,163,194 3,511,272 8,559,240 - - - - - - - - - 21,785,094 5,118,392 28,040,330 6,567,053 25,029,210 4,373,789 20,163,194 3,511,272 8,159,989 - - - - - 1,107,814 1,618,986 - 1,151,200 85,780 1,618,986 52,558 14,539,649 6,529 167,569,844 3,833,787 169,491,822 6,101,636 92,863,118 9,251,403 222,500,751 13,240,188 325,098,113 25,385,335 - - - 101,922,626 125,308,109 - - 101,922,626 125,308,109 - - 14,539,649 6,529 168,677,658 3,833,787 169,491,822 6,101,636 101,922,626 125,308,109 94,482,104 9,251,403 325,574,577 138,634,077 326,717,099 25,437,893 - - - - - - - - - - - - - - - - - - - BALANCE Current accounts receivable from related companies Trade and other current receivables Discontinued operations Total Estimated Assets Current accounts payable to related companies Trade and other current payables Discontinued operations Total Estimated Liabilities COLOMBIA PERU ARGENTINA BRASIL TOTAL 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 Energy and capacity Energy and capacity Tolls Energy and capacity Tolls Energy and capacity Tolls Energy and capacity Tolls Energy and capacity Tolls Energy and capacity Tolls RESULTS Tolls and capacity Tolls capacity Tolls capacity Tolls capacity Tolls capacity Tolls capacity Tolls capacity Tolls capacity Tolls Energy Energy and Energy and Energy and Energy and Energy and Energy and Energy and Energy sales 91,614,430 3,782,034 94,439,616 4,137,051 79,365,812 3,844,886 39,027,533 5,024,561 34,481,991 3,341,292 31,384,194 610,848 24,469,681 148,113 37,120,676 310,919 58,105,467 872,208 104,917,610 5,394,125 89,394,426 6,268,177 74,614,703 5,342,261 260,029,254 14,348,833 255,436,708 14,057,439 243,470,176 10,670,204 Purchase sales 20,447,041 5,223,843 25,631,699 9,889,413 19,174,609 7,671,493 24,701,337 4,316,494 19,958,532 3,478,388 13,624,354 3,051,373 10,541,703 - 13,839,215 441,931 18,095,954 921,658 184,762,886 4,199,379 179,556,986 6,463,979 61,567,284 2,966,183 240,452,967 13,739,716 238,986,433 20,273,711 112,462,200 14,610,707 612 2015 Annual Report Enersis         Appendix 7.2 Estimated Sales and Purchases of Energy and Capacity This appendix forms an integral part of the Enersis Américas financial statements. Country COLOMBIA PERU ARGENTINA BRAZIL CHILE TOTAL 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 12-31-2015 12-31-2014 BALANCE Tolls Tolls Tolls Tolls Tolls Energy and capacity Energy and capacity Energy and capacity Energy and capacity Energy and capacity Energy and capacity Tolls Energy and capacity Energy and capacity Tolls Energy and capacity Tolls Energy and capacity Tolls Energy and capacity Tolls Energy and capacity Tolls Tolls Current accounts receivable from related companies Trade and other current receivables Discontinued operations Total Estimated Assets Current accounts payable to related companies Trade and other current payables Discontinued operations Total Estimated Liabilities Purchase sales 312,398 231,744 256,708 85,174 - - - 5,967 - - 91,292,198 3,767,410 84,133,181 3,619,524 39,545,565 5,091,255 33,292,452 4,920,460 26,291,133 114,662 35,563,152 2,247,911 95,783,612 4,867,959 84,383,373 5,916,811 - - - 287,822 33,766 312,398 237,711 544,530 118,940 - 250,102,288 10,403,137 248,609,678 13,841,286 487,474,445 27,107,843 - - - - - - - - - - 216,908,877 28,418,337 - - 216,908,877 28,418,337 - - 91,604,596 3,999,154 84,389,889 3,704,698 39,545,565 5,091,255 33,292,452 4,920,460 21,988,302 114,662 35,563,152 2,247,911 95,783,612 4,873,926 84,383,373 5,916,811 216,908,877 28,418,337 250,390,110 10,436,903 465,830,953 42,497,334 488,018,976 27,226,783 43,386 85,780 - 52,558 - - 1,107,814 - - 21,741,708 5,032,612 28,040,330 6,514,495 25,029,210 4,373,789 20,163,194 3,511,272 8,559,240 14,539,649 6,529 167,569,844 3,833,787 169,491,822 6,101,636 - - - - 1,618,986 - 1,151,200 85,780 1,618,986 52,558 92,863,118 9,251,403 222,500,751 13,240,188 325,098,113 25,385,335 - - - - - - - - - - 101,922,626 125,308,109 - - 101,922,626 125,308,109 - - 21,785,094 5,118,392 28,040,330 6,567,053 25,029,210 4,373,789 20,163,194 3,511,272 8,159,989 14,539,649 6,529 168,677,658 3,833,787 169,491,822 6,101,636 101,922,626 125,308,109 94,482,104 9,251,403 325,574,577 138,634,077 326,717,099 25,437,893 - - - - - - - - - - - - - - - - - - - - - - - - - - COLOMBIA PERU ARGENTINA BRASIL TOTAL 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 12-31-2015 12-31-2014 12-31-2013 RESULTS Tolls capacity Tolls capacity Tolls capacity Tolls capacity Tolls capacity Tolls capacity Tolls Energy and Energy and Energy and Energy and Energy and Energy and Energy and capacity Energy and capacity Tolls Energy and capacity Energy and capacity Tolls Energy and capacity Tolls Energy and capacity Tolls Energy and capacity Tolls Energy and capacity Tolls Energy and capacity Tolls Tolls Energy sales 91,614,430 3,782,034 94,439,616 4,137,051 79,365,812 3,844,886 39,027,533 5,024,561 34,481,991 3,341,292 31,384,194 610,848 24,469,681 148,113 37,120,676 310,919 58,105,467 872,208 104,917,610 5,394,125 89,394,426 6,268,177 74,614,703 5,342,261 260,029,254 14,348,833 255,436,708 14,057,439 243,470,176 10,670,204 20,447,041 5,223,843 25,631,699 9,889,413 19,174,609 7,671,493 24,701,337 4,316,494 19,958,532 3,478,388 13,624,354 3,051,373 10,541,703 - 13,839,215 441,931 18,095,954 921,658 184,762,886 4,199,379 179,556,986 6,463,979 61,567,284 2,966,183 240,452,967 13,739,716 238,986,433 20,273,711 112,462,200 14,610,707 613 Consolidated Financial Statements        Appendix 8 Details of Due Dates of Payments to Suppliers This appendix forms an integral part of the Enersis Américas financial statements Suppliers with Payments Up- to-Date Balance at 12-31-2015 Goods ThCh$ Services ThCh$ Others 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 365 days More than 365 days Total Suppliers with Payments Overdue 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 Total - - - - - - - 107,441,015 224,427,906 331,868,921 13,041,611 16,446,525 29,488,136 - - - - - - - - - - 2,278,233 2,278,233 120,482,626 243,152,664 363,635,290 17,186,972 167,424,566 644,249,911 828,861,449 Balance at 12-31-2015 Balance at 12-31-2014 Goods ThCh$ Services ThCh$ Others ThCh$ Total ThCh$ Goods ThCh$ Services ThCh$ Others ThCh$ Total ThCh$ - - - - - - - - - - - - - - 10,249,865 10,249,865 - - - - - - - - 87,506,351 87,506,351 97,756,216 97,756,216 - - - - - - - - - - - - 1,137,018 1,137,018 Balance at 12-31-2014 Goods ThCh$ 17,186,972 Services ThCh$ 157,069,570 10,354,996 Others ThCh$ 635,121,059 2,848,853 376,364 376,364 3,010,909 2,516,362 Total ThCh$ 809,377,601 13,203,849 376,364 376,364 3,010,909 2,516,362 - - - - - - - - - - - - - - - - - - - - - 1,137,018 1,137,018 614 2015 Annual Report Enersis                                     Appendix 8 Details of Due Dates of Payments to Suppliers This appendix forms an integral part of the Enersis Américas financial statements Suppliers with Payments Up- to-Date Up to 30 days From 31 to 60 days From 61 to 90 days From 91 to 120 days From 121 to 365 days More than 365 days Suppliers with Payments Overdue 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 Balance at 12-31-2015 Goods ThCh$ Services ThCh$ Others ThCh$ Total ThCh$ 107,441,015 224,427,906 331,868,921 13,041,611 16,446,525 29,488,136 2,278,233 2,278,233 - - - - - - - - - - - - - - 10,249,865 10,249,865 87,506,351 87,506,351 - - - - - - - - - - - - - - - - - - - - - - - - - Total 97,756,216 97,756,216 Balance at 12-31-2014 Goods ThCh$ 17,186,972 - - - - - Services ThCh$ 157,069,570 10,354,996 - - - - Others ThCh$ 635,121,059 2,848,853 376,364 376,364 3,010,909 2,516,362 Total ThCh$ 809,377,601 13,203,849 376,364 376,364 3,010,909 2,516,362 Total 120,482,626 243,152,664 363,635,290 17,186,972 167,424,566 644,249,911 828,861,449 Balance at 12-31-2015 Balance at 12-31-2014 Goods ThCh$ Services ThCh$ Others ThCh$ Total ThCh$ Goods ThCh$ Services ThCh$ Others ThCh$ Total ThCh$ - - - - - - - - - - - - 1,137,018 1,137,018 - - - - - - - - - - - - 1,137,018 1,137,018 615 Consolidated Financial Statements                                    Management’s Analysis of Consolidated Financial Statements  Enersis Américas Announces Consolidated Results for the period ended on december 31, 2015 • Enersis Américas’ EBITDA as of December 31, 2015, including discontinued operations, amounted to Ch$ 2,289,133 million, in line with the Ch$ 2,300,020 obtained in 2014. • The generation business showed an EBITDA growth of Ch$ 80,674 million, 6.2% higher compared to 2014. This is mainly explained by the better results obtained in Chile of Ch$ 159,984 million, 45% higher than the previous year, due to better sales prices and higher physical energy sales, together with the effect of consolidating 100% of GasAtacama for the entire year, while in 2014 it was consolidated since May. This was partially offset by a lower EBITDA in Colombia, mostly attributable to exchange rate effect, and in Brazil. • In distribution business, EBITDA was 5.9% lower than the previous year, amounting to Ch$ 966,679 million, which is mostly explained by a 39% decrease in Brazil’s EBITDA mainly attributable to a lower electricity demand and higher energy losses, resulting from Brazil’s macroeconomic situation. This was partially offset by the acknowledgement of Ch$ 317,492 million in Argentina coming from Resolution N° 32/2015 and better results in Peru and Chile. • The positive operating performance in generation business, along with a better financial result due to higher financial income and lower financial costs, resulted in an 8.4% increase in net profits attributable to Enersis’ controlling shareholders compared to the last year, amounting to Ch$ 661,587 million. • The Company’s distribution customer base grew by more than 448,000 clients during the last 12 months, reaching more than 15.2 million clients. Energy demand in the Group’s concession areas increased by 2.3%, reaching Physical sales of 78,731 GWh. • In the generation business, the accumulated net energy production reached 60,403 GWh, in line with the 60,299 GWh generated in 2014. On the other hand, Physical sales increased by 4.1% compared to the previous year, reaching 72,039 GWh, mostly attributable to higher sales in Chile and Colombia. • El Quimbo began operating on November 16, 2015, contributing 400 MW of installed capacity and 159 GWh of production during the year 2015. On the other hand, we have continued the construction of Los Condores (150 MW, hydro), estimated to begin operating toward the end of 2018. 618 2015 Annual Report Enersis Economic - financial summary • Consolidated net debt including discontinued operations decreased by US$ 173 million compared to 2014, a 5.5% decrease, reaching US$ 2,940 million as of December 2015. • The Company’s operating result (EBIT) increased by 0.5% compared to 2014, reaching • Ch$ 1,778,633 million, primarily explained by the positive performance of Chile’s generation business. This was partially offset by a lower result in distribution business mainly attributable to the situation of Ampla in Brazil. • Net financial result shows a smaller loss of Ch$ 236,547 million, improving by 89.9%. This is mainly explained by higher financial revenues and positive exchange rate differences due to dollarization of account receivables in Argentina related to investments in previous years, and higher financial revenues in Brazil from improved regulated distribution assets at the end of concession (IFRIC 12) compared to 2014. This was partially offset by the negative impact of exchange rate in foreign currency denominated debt. • Income before taxes amounted to Ch$ 1,777,745 million, equivalent to a 16.5% increase as compared with 2014. • Corporate taxes paid out by the Company were 27.5% higher than in the previous year, reaching Ch$ 633,276 million, mostly explained by Chile and Argentina. • As a result of these variations, Net Income attributable to Enersis Américas shareholders, including discontinued operations, increase by 8.4% in 2015 compared to 2014, amounting to Ch$ 661,587 million. Financial summary The Company’s available liquidity has remained solid. Including discontinued operations, the liquidity position was the following: Cash and cash equivalent US$ 1,872 million Cash and cash equiv. + 90-day cash investments US$ 1,923 million Available committed lines of credit Available uncommitted lines of credit US$ 531 million US$ 706 million • The average nominal interest rate in December 2015 increased up to 8.7% from 8.3% during the same period of the previous year, primarily influenced by worse interest rate conditions in Colombian peso and Brazilian real debts, respectively. All of the above was partly offset by better interest rates in dollars and better inflation conditions in Chile. For the continuing company, Enersis Américas, the liquidity situation was as follows: Cash and cash equivalent US$ 1,669 million Cash and cash equiv. + 90-day cash investments US$ 1,720 million Available committed lines of credit Available uncommitted lines of credit US$ 245 million US$ 411 million 619 Management’s Analysis of Consolidated Financial Statements• The average nominal interest rate as of December 2015 increased up to 9.6% from 8.8% during the previous year, mainly influenced by worse interest rate conditions in Colombian peso and Brazilian real debts, respectively. All of the above was partly offset by better interest rates in dollars and better inflation conditions in Chile. Hedging and protection: In order to mitigate the financial risks associated to foreign exchange and interest rate fluctuations, Enersis Américas S.A. (continuing company of Enersis S.A.) has enacted policies and procedures aimed at hedging its financial statements against volatility. Enersis Américas S.A. (consolidated) foreign exchange hedging policy establishes that there must be equilibrium between the index currency of the flows generated by each company and the currency in which they assume debt. Consequently, Enersis Américas, including discontinued operations, has contracted cross- currency swaps valued at US$ 406 million and forwards of US$ 91 million. In order to reduce financial statement volatility caused by interest rate changes, Enersis Américas S.A. (consolidated) keeps an adequate balance in the structure of the debt. To that effect, we have contracted interest rate swaps for US$ 85 million. In the case of Enersis Chile S.A. (consolidated) and maintaining Enersis S.A. policy before the spin-off of the company between Chile and Américas, has contracted cross-currency swaps valued at US$ 762 million and forwards for US$ 184 million. Relevant information for the analysis of this Financial Statements as stated under Note 5 of the current financial statements as of December 2015, on December 18, 2015 the Shareholders’ Meeting of Enersis S.A. decided to approve the spin-off of the Company subject to compliance with certain precedent conditions. The referred corporate split consists in dividing Enersis and its subsidiary, Endesa Chile and Chilectra, in a manner such as to keep apart on one side the generation and distribution businesses in Chile and, on the other, the activities out of Chile. On February 1, 2016, and having met the precedent conditions, the spin-off of Enersis Chile and its subsidiaries, Endesa Chile and Chilectra, was indeed materialized and as of such same date the subsidiaries Enersis Américas (continuing company of the former Enersis S.A.), Enersis Chile, Endesa Américas and Chilectra Américas began to legally exist. Considering the above mentioned and pursuant to the provisions of the International Financial Reporting Standards (IFRS), as of December 31, 2015 all assets and liabilities related to the generation and distribution businesses in Chile have been considered as “held for distribution to owners”, having reclassified their balance sheet balances. On the other hand, all revenues and expenses corresponding to generation and distribution businesses in Chile, as they are considered discontinued operations, are shown under the item “Profit (loss) from discontinued operations” of the consolidated income statement. 620 2015 Annual Report Enersis For comparative purposes this presentation scheme has also been applied to results corresponding to the years 2014 and 2013, thereby restating the previously-approved consolidated income statements. In line with what has been described above and in order to enable a better interpretation of the businesses and results of the years ending as of December 31 of 2015 versus 2014, we prepared tables to clearly visualize and distinguish discontinued from continuing operations, thereby enabling explaining the businesses and their results in an overall manner as if the operation had not been done. Markets in which the company operates Enersis Américas’ business activities are carried out through subsidiary companies that operate the different businesses in the five countries in which the Company operates. The most important businesses for Enersis are electricity generation and distribution. At the end of April 2014, our subsidiary Endesa Chile acquired an additional 50% of the partnership rights in Inversiones GasAtacama Holding Limitada, thus attaining control and 100% ownership of the property. The following tables show some key indicators, as of December 31, 2015 and 2014, of the companies in the different countries in which they operate. Generation business Company Endesa Chile (1) Endesa Costanera El Chocón Dock Sud Edegel consolidado EE, Piura Emgesa Cachoeira Dourada Endesa Fortaleza Total Discontinued operations (1) Total Markets in which operates SIC & SING Chile SIN Argentina SIN Argentina SIN Argentina SICN Peru SICN Peru SIN Colombia SICN Brasil SICN Brasil Energy Sales (GWh) Dec-15 Dec-14 Market Share Dec-14 Dec-15 35.4% 6.2% 2.9% 2.9% 21.6% 1.6% 19.0% 0.7% 0.7% 32.6% 5.6% 2.7% 3.8% 24.9% 1.6% 19.4% 0.8% 0.7% 23,558 8,168 3,801 3,802 8,633 650 16,886 3,215 3,326 21,157 7,051 3,391 4,834 9,320 596 15,773 3,903 3,205 72,039 (23,558) 48,481 69,230 (21,157) 48,073 (1)Includes Endesa Chile and its generation subsidiaries in Chile. As of December 31, 2015 and 2014 corresponds to discontinued operations 621 Management’s Analysis of Consolidated Financial StatementsDistribution business Energy Sales (GWh) Energy Losses % Clients (thousand) Clients / Employees Company Chilectra (**) Edesur Edelnor Ampla Coelce Codensa Dec-15 Dec-14 15,893 18,492 7,624 11,547 11,229 13,946 15,690 17,972 7,338 11,678 11,165 13,660 Dec-15 5.3% Dec-14 Dec-15 5.3% 1,781 12.3% 10.8% 2,480 8.0% 1,337 20.9% 20.1% 2,997 13.7% 12.7% 3,758 7.2% 2,865 8.3% 7.3% Dec-14 1,737 2,464 1,294 2,875 3,625 2,772 Dec-15 2,596 596 2,191 2,579 3,168 2,771 Dec-14 2,518 645 2,090 2,466 2,989 2,658 Total Discontinued operations (**) Total Continuing Operations 78,732 (15,893) 62,838 77,503 (15,690) 61,813 11.3% 11.3% 10.7% 15,216 (1,781) 10.7% 13,436 14,768 (1,737) 13,030 1,722 1,726 1,722 1,726 (*) Includes final customer sales and tolls. (**) Consolidated data. As of December 31, 2015 and 2014, corresponds to discontinued operations. The following table shows energy sale revenues breakdown by business line and by type of client as of December 31, 2015 and 2014 in the different countries in which we operate. The information includes discontinued operations as if the operation would not have been done . Energy Sales Revenues Generation and Distribution (Figures in million Ch$) País Energy Sales Revenues Generation Regulated customers Non regulated customers Spot Market Other Clients Distribution Residential Commercial Industrial Other Less: Consolidation adjustments Dec-15 Chile (*) Dec-14 Argentina (**) Dec-14 Dec-15 Dec-15 Brasil (**) Dec-14 Colombia (**) Total Segments Dec-15 Dec-14 Dec-15 Dec-15 Dec-14 Dec-15 Dec-14 Dec-15 Total Dec-14 Structure and adjustments 1,474,818 1,067,435 264,112 140,340 2,931 1,112,914 407,437 350,157 230,416 124,904 (340,368) 1,155,806 760,297 274,938 98,451 22,120 997,836 335,917 281,979 196,219 183,721 (267,341) 118,065 - 6,003 74,988 37,074 261,053 87,213 108,920 29,920 35,000 (26) 75,489 - 9,785 38,289 27,415 204,714 70,375 82,844 20,785 30,710 (27) 250,600 148,844 66,291 35,465 - 369,739 157,329 131,767 80,643 - 1,509,823 761,401 324,695 121,499 302,228 (133,477) 1,696,855 863,888 360,707 144,536 327,724 (143,516) 762,280 743,649 545,157 217,123 532,364 211,285 - - - - 723,093 382,378 180,465 76,231 84,019 808,455 433,772 202,635 81,752 90,296 355,087 206,903 116,587 11,416 20,181 528,051 254,248 108,633 72,072 93,098 Peru (**) Dec-14 325,249 184,724 119,299 8,692 12,534 2,960,850 2,669,932 1,423,182 1,102,350 (552,090) (551,888) 998,150 479,332 60,186 1,068,153 437,360 62,069 447,642 4,134,934 4,155,502 215,821 1,892,677 1,919,773 91,376 62,749 77,696 1,072,870 1,019,541 530,138 639,249 506,041 710,147 (176) - (26) (71,949) (2,498) (79) - (69,372) 624,039 - - - - - - - - - - 2,408,760 2,669,932 871,294 1,102,350 997,974 1,068,153 479,332 60,160 437,360 62,069 4,062,985 4,155,502 1,890,179 1,919,773 1,072,791 1,019,541 530,138 569,877 506,041 710,147 (69,548) (106,461) (80,620) (71,832) (624,039) (589,177) (122) - (589,299) Energy Sales Revenues 2,247,364 1,886,301 379,092 280,176 1,626,946 1,923,078 1,415,825 1,445,643 802,518 701,059 6,471,745 6,236,257 - -122 6,471,745 6,236,135 Change in million Ch$ and % 361,063 19.1% 98,916 (35.3%) (296,132) (15.4%) (29,818) (2.1%) 101,459 14.5% 235,488 3.8% 122 235,610 3.8% (*) Discontinued Operations (**) Continuing Operations 622 2015 Annual Report Enersis Distribution business Energy Sales Energy Losses (GWh) % Clients (thousand) Clients / Employees Dec-15 Dec-14 Dec-15 Dec-14 Dec-15 Dec-14 Dec-15 Dec-14 15,893 18,492 7,624 11,547 11,229 15,690 17,972 7,338 11,678 11,165 5.3% 5.3% 1,781 12.3% 10.8% 2,480 8.3% 8.0% 1,337 20.9% 20.1% 2,997 13.7% 12.7% 3,758 13,946 13,660 7.3% 7.2% 2,865 1,737 2,464 1,294 2,875 3,625 2,772 2,596 596 2,191 2,579 3,168 2,771 2,518 645 2,090 2,466 2,989 2,658 Company Chilectra (**) Edesur Edelnor Ampla Coelce Codensa Total Discontinued operations (**) (15,893) (15,690) (1,781) (1,737) Total Continuing Operations 62,838 61,813 11.3% 10.7% 13,436 13,030 1,722 1,726 78,732 77,503 11.3% 10.7% 15,216 14,768 1,722 1,726 (*) Includes final customer sales and tolls. (**) Consolidated data. As of December 31, 2015 and 2014, corresponds to discontinued operations. The following table shows energy sale revenues breakdown by business line and by type of client as of December 31, 2015 and 2014 in the different countries in which we operate. The information includes discontinued operations as if the operation would not have been done . Energy Sales Revenues Generation and Distribution (Figures in million Ch$) Chile (*) Dec-14 760,297 274,938 98,451 22,120 997,836 335,917 281,979 196,219 183,721 1,067,435 264,112 140,340 2,931 1,112,914 407,437 350,157 230,416 124,904 País Energy Sales Revenues Generation Regulated customers Non regulated customers Spot Market Other Clients Distribution Residential Commercial Industrial Other (*) Discontinued Operations (**) Continuing Operations Dec-15 Dec-15 Dec-14 Dec-15 Dec-14 Argentina (**) Brasil (**) Colombia (**) Dec-14 Dec-15 Dec-15 Peru (**) Dec-14 Total Segments Dec-14 Dec-15 Structure and adjustments Dec-14 Dec-15 Dec-15 Total Dec-14 1,474,818 1,155,806 118,065 75,489 - 9,785 38,289 27,415 70,375 82,844 20,785 30,710 250,600 148,844 66,291 35,465 - 761,401 324,695 121,499 302,228 369,739 157,329 131,767 80,643 - 863,888 360,707 144,536 327,724 204,714 1,509,823 1,696,855 - 6,003 74,988 37,074 261,053 87,213 108,920 29,920 35,000 (26) 762,280 - 545,157 217,123 - 723,093 382,378 180,465 76,231 84,019 (69,548) 743,649 - 532,364 211,285 - 808,455 433,772 202,635 81,752 90,296 (106,461) 355,087 206,903 116,587 11,416 20,181 528,051 254,248 108,633 72,072 93,098 (80,620) 325,249 184,724 119,299 8,692 12,534 447,642 215,821 91,376 62,749 77,696 (71,832) 2,960,850 1,423,182 998,150 479,332 60,186 4,134,934 1,892,677 1,072,870 530,138 639,249 (624,039) 2,669,932 1,102,350 1,068,153 437,360 62,069 4,155,502 1,919,773 1,019,541 506,041 710,147 (589,177) (552,090) (551,888) (176) - (26) (71,949) (2,498) (79) - (69,372) 624,039 - - - - - - - - - - (122) 2,408,760 871,294 997,974 479,332 60,160 4,062,985 1,890,179 1,072,791 530,138 569,877 - 2,669,932 1,102,350 1,068,153 437,360 62,069 4,155,502 1,919,773 1,019,541 506,041 710,147 (589,299) Less: Consolidation adjustments (340,368) (267,341) (27) (133,477) (143,516) Energy Sales Revenues 2,247,364 1,886,301 379,092 280,176 1,626,946 1,923,078 1,415,825 1,445,643 802,518 701,059 6,471,745 6,236,257 - -122 6,471,745 6,236,135 Change in million Ch$ and % 361,063 19.1% 98,916 (35.3%) (296,132) (15.4%) (29,818) (2.1%) 101,459 14.5% 235,488 3.8% 122 235,610 3.8% 623 Management’s Analysis of Consolidated Financial StatementsI. - Analysis of the Financial Statements 1. Analysis of the Income Statement Net income attributable to the controlling shareholders of Enersis Américas as of December 31, 2015 amounted to Ch$ 661,587 million; which represents an 8.4% increase compared to the same period of the previous year, which amounted to Ch$ 610,158 million. Following is an item-by-item comparison of the Income Statement of the continuing operations as of December 31, 2015 and 2014: CONSOLIDATED INCOME STATEMENT (Continuing Operations) (million Ch$) Revenues Sales Other operating income Procurements and Services Energy purchases Fuel consumption Transportation expenses Other variable costs Contribution Margin Personnel costs Other fixed operating expenses Gross Operating Income (EBITDA) Depreciation and amortization Reversal of impairment profit (impairment loss) recognized in profit or loss Operating Income Net Financial Income Financial income Financial costs Gain (Loss) for indexed assets and liabilities Foreign currency exchange differences, net Other Non Operating Income Net Income From Sale of Assets Share of profit (loss) of associates accounted for using the equity method Dec-15 5,301,440 4,667,645 633,794 (2,777,202) (1,885,916) (258,114) (245,813) (387,358) 2,524,238 (420,597) (488,529) 1,615,112 (320,542) Dec-14 5,206,370 4,806,456 399,914 (2,631,669) (1,824,003) (205,534) (265,185) (336,947) 2,574,700 (333,898) (463,729) 1,777,073 (350,743) Change 95,070 (138,810) 233,880 (145,532) (61,914) (52,580) 19,372 (50,411) (50,462) (86,699) (24,799) (161,961) 30,201 % Change 1.8% (2.9%) 58.5% (5.5%) (3.4%) (25.6%) 7.3% (15.0%) (2.0%) (26.0%) (5.4%) (9.1%) 8.6% (39,812) (38,330) (1,482) (3.9%) 1,254,758 28,287 294,770 (385,455) (9,266) 128,238 (3,233) (6,566) 1,388,000 (213,316) 251,122 (432,314) (13,630) (18,494) 3,437 877 (133,242) 241,603 43,649 46,859 4,364 146,732 (6,670) (7,443) (9.6%) 113.3% 17.4% 10.8% 32.0% 793.4% (194.1%) (849.1%) 3,333 2,560 773 30.2% Net Income Before Taxes Income Tax 1,279,812 (523,663) 1,178,121 (430,592) 101,691 (93,071) 8.6% (21.6%) Net Income from Continuing Operations 756,149 747,529 8,620 1.2% Net income (Loss) from discontinued operations after taxes 388,321 281,941 106,379 (37.7%) NET INCOME 1,144,469 1,029,470 115,000 11.2% NET INCOME Net Income attributable to owners of parent Net income attributable to non-controlling interest 1,144,469 661,587 482,883 1,029,470 610,158 419,312 115,000 51,429 63,571 11.2% 8.4% 15.2% Earning per share from continuing operations (Ch$ /share) Earning per share from discontinued operations (Ch$ / share) Earning per share (Ch$ /share) 5.57 7.91 6.89 5.74 13.48 12.43 (1.32) (19.2%) 2.17 1.05 37.8% 8.5% (*) As of December 31, 2015 and 2014 the average number of paid and subscribed shares were 49,092,772,762 624 2015 Annual Report Enersis Following is an item-by-item comparison of the Income Statement including discontinued operations as of December 31, 2015 and 2014: CONSOLIDATED INCOME STATEMENT (Including Discontinued Operations)(million Ch$) Revenues Sales Other operating income Procurements and Services Energy purchases Fuel consumption Transportation expenses Other variable costs Contribution Margin Personnel costs Other fixed operating expenses Gross Operating Income (EBITDA) Depreciation and amortization Reversal of impairment profit (impairment loss) recognized in profit or loss Operating Income Net Financial Income Financial income Financial costs Gain (Loss) for indexed assets and liabilities Foreign currency exchange differences, net Other Non Operating Income Net Income From Sale of Assets Share of profit (loss) of associates accounted for using the equity method Dec-15 7,698,847 7,050,316 648,530 (4,259,187) (2,746,120) (585,617) (428,267) (499,184) 3,439,659 (536,148) (614,379) 2,289,133 (473,744) Dec-14 7,253,876 6,819,761 434,115 (3,941,071) (2,612,423) (511,015) (417,134) (400,499) 3,312,805 (438,734) (574,051) 2,300,020 (479,180) Change 444,971 230,555 214,415 (318,116) (133,697) (74,602) (11,133) (98,685) 126,854 (97,414) (40,328) (10,887) 5,436 % Change 6.1% 3.4% 49.4% (8.1%) (5.1%) (14.6%) (2.7%) (24.6%) 3.8% (22.2%) (7.0%) (0.5%) 1.1% (36,757) (51,515) 14,758 28.7% 1,778,633 (26,615) 310,040 (447,072) (4,427) 114,843 25,728 13,490 1,769,325 (263,162) 265,884 (491,858) 1,634 (38,822) 19,916 71,769 9,308 236,547 44,156 44,786 (6,061) 153,665 5,812 (58,279) 0.5% 89.9% 16.6% 9.1% 370.9% 395.8% 29.2% (81.2%) 12,238 (51,853) 64,091 (123.6%) Net Income Before Taxes Income Tax NET INCOME Net Income attributable to owners of parent Net income attributable to non-controlling interest 1,777,745 (633,276) 1,144,469 661,587 482,883 1,526,079 (496,609) 1,029,470 610,158 419,312 251,666 (136,667) 114,999 51,429 63,571 16.5% (27.5%) 11.2% 8.4% 15.2% Earning per share (Ch$ /share) 13.48 12.43 1.05 8.5% (*) As of December 31, 2015 and 2014 the average number of paid and subscribed shares were 49,092,772,762 Operating income: Operating income obtained as of December 31, 2015, which includes the discontinued activities as if the operation would not have been done, shows an increase of Ch$ 9,308 million, equivalent to 0.5%, going from Ch$1,769,325 million as of December 2014 to Ch$ 1,778,633 million in 2015. 625 Management’s Analysis of Consolidated Financial StatementsThe breakdown of operating revenue and expenses for the continuing operations by business line for the years 2015 and 2014, is as follows: OPERATING INCOME BY BUSINESS LINES (Continuing Operations) (Figures in million Ch$) Generation & Transmission Dec-15 Dec-14 Distribution Dec-15 Dec-14 Adjustments Dec-15 Dec-14 Total Dec-15 Dec-14 1,734,762 1,762,869 3,890,723 3,802,109 (324,045) (358,608) 5,301,440 5,206,370 (1,020,066) (962,567) (3,317,705) (3,200,400) 291,090 344,597 (4,046,681) (3,818,369) 714,696 800,302 573,018 601,708 (32,955) (14,011) 1,254,758 1,388,000 (85,606) (10.7%) (28,691) (4.8%) (18,944) (135.2%) (133,242) (9.6%) Operating Revenues Operating Costs Operating Income Change in million Ch$ and % The breakdown of operating income and costs by line of business for the years 2015 and 2014 includes the discontinued operations considering as if the operation would not have been performed: OPERATING INCOME BY BUSINESS LINES (Including Discontinued Operations) (Figures in million Ch$) Generation & Transmission Dic-15 Dic-14 Distribution Dic-15 Dic-14 Adjustments Dic-15 Dic-14 Total Dic-15 Dic-14 3,279,630 2,983,424 5,148,455 4,930,001 (729,239) (659,549) 7,698,847 7,253,876 (2,163,115) (1,937,408) (4,426,143) (4,174,186) 669,045 627,042 (5,920,213) (5,484,552) 1,116,515 1,046,016 722,312 755,815 (60,194) (32,506) 1,778,633 1,769,325 70,499 6.7% (33,503) (4.4%) (27,688) (85.2%) 9,308 0.5% Operating Revenues Operating Costs Operating Income Change in million Ch$ and % The generation and transmission businesses of the Group, which includes discontinued activities as if the operation would not have been performed, shows an increment of Ch$ 70,499 million equivalent to 6.7%, reaching Ch$ 1,116,515 million. The Physical sales that include the discontinued activities increased by 4.1% amounting to 72,039 GWh (69,230 GWh in 2014). A comparative table including discontinued operations of the generation and transmission business operating income between both periods on a country-by-country basis is shown below OPERATING INCOME BY COUNTRY Generation & Transmission (Figures in million Ch$) Discontinued Operations País Operating Revenues Operating Costs Chile Dec-15 Dec-14 Argentina Dec-15 Dec-14 Brazil Dec-15 1,543,810 (1,141,991) 1,220,555 (974,841) 212,136 (160,927) 167,630 (128,921) Operating Income Change in million Ch$ and % 401,819 156,104 245,715 63.5% 51,209 12,501 38,708 32.3% 626 2015 Annual Report Enersis Continuing Operations Colombia Dec-14 Dec-15 Dec-14 Dec-14 Dec-15 Dec-14 Dec-14 437,033 778,768 753,385 437,887 401,695 1,735,820 1,762,869 3,279,630 2,983,424 (288,199) (405,940) (303,895) (280,561) (242,838) (1,021,124) (962,567) (2,163,115) (1,937,408) Peru Dec-15 Total Continuing Operations Total Dec-15 148,834 (11.6%) 372,828 (76,662) 449,490 (17.1%) 157,326 (1,531) 158,857 (1.0%) 714,696 (85,607) 800,302 1,116,515 1,046,016 (10.7%) 70,499 6.7% 305,830 (174,274) 131,556 (17,278) Operating Revenues Operating Income Change in million Ch$ and % Operating Revenues Operating Income Change in million Ch$ and % The breakdown of operating revenue and expenses for the continuing operations by business line for the years 2015 and 2014, is as follows: OPERATING INCOME BY BUSINESS LINES (Continuing Operations) (Figures in million Ch$) Generation & Transmission Distribution Adjustments Dec-15 Dec-14 Dec-15 Dec-14 Dec-15 Dec-14 Dec-14 Total Dec-15 1,734,762 1,762,869 3,890,723 3,802,109 (324,045) (358,608) 5,301,440 5,206,370 Operating Costs (1,020,066) (962,567) (3,317,705) (3,200,400) 291,090 344,597 (4,046,681) (3,818,369) a) Continuing operations: Argentina The operating income of our generation subsidiaries in Argentina reached Ch$ 51,209 million, Ch$ 12,501 million higher than last year, when operating income amounted to Ch$ 38,708 million. Endesa Costanera’s operating income amounted to Ch$ 20,372 million, Ch$ 6,671 million higher than the previous year as a consequence of higher operating revenues of Ch$ 25,663 million mostly attributable to higher generation; which implied higher energy sales of 1,117 GWh than those of the previous year and 714,696 800,302 573,018 601,708 (32,955) (14,011) 1,254,758 1,388,000 to higher average sale prices associated to Resolution N°482. The foregoing was partially offset by higher (85,606) (10.7%) (28,691) (4.8%) (18,944) (135.2%) (133,242) (9.6%) operating expenses of Ch$ 18,992 million mostly due to higher Personnel expenses of Ch$ 12,728 million as a consequence of increased staffing and salaries resulting from a collective bargaining agreement as well as from higher depreciation and impairment amounting to Ch$ 5,315 million due to higher Expense capitalizations The breakdown of operating income and costs by line of business for the years 2015 and 2014 includes the in the Combined Cycle Central. discontinued operations considering as if the operation would not have been performed: OPERATING INCOME (Figures in million Ch$) BY BUSINESS LINES (Including Discontinued Operations) Generation & Transmission Distribution Adjustments Dic-15 Dic-14 Dic-15 Dic-14 Dic-15 Dic-14 Dic-14 Total Dic-15 3,279,630 2,983,424 5,148,455 4,930,001 (729,239) (659,549) 7,698,847 7,253,876 Operating Costs (2,163,115) (1,937,408) (4,426,143) (4,174,186) 669,045 627,042 (5,920,213) (5,484,552) 1,116,515 1,046,016 722,312 755,815 (60,194) (32,506) 1,778,633 1,769,325 70,499 6.7% (33,503) (4.4%) (27,688) (85.2%) 9,308 0.5% El Chocon’s operating income amounted to Ch$ 27,009 million, Ch$ 12,671 million higher than the previous year, due to higher operating revenues of Ch$ 9,831 million due to higher Physical sales of 410 GWh compared to 2014, as a result of better hydrological conditions and better average sale prices in connection with Resolution N°482. Operating costs decreased by Ch$ 2,840 million mainly due to lower other variable costs of Ch$ 2,840 million as a result of lower tax credits from the regulator, lower transportation costs of Ch$1,236 million due to lower variable payment of the delivered energy in connection with Resolution N°482 and lower energy purchases of Ch$ 943 million, offset by higher Personnel expenses of Ch$ 1,160 million resulting from salary increases. The operating income of our subsidiary Dock Sud reached Ch$ 3,309 million, Ch$ 6,155 million lower than the previous year due to higher operating costs of Ch$ 14,512 million, mainly due to higher fuel consumption of Ch$ 7,839, higher Depreciation and impairment expenses of Ch$ 5,775 million due to higher capitalizations The generation and transmission businesses of the Group, which includes discontinued activities as if the in the company compared to 2014 and higher Personnel expenses of Ch$ 2,051 million resulting from salary operation would not have been performed, shows an increment of Ch$ 70,499 million equivalent to 6.7%, increases, the foregoing offset by lower other expenses by nature amounting to Ch$ 1,603 million resulting reaching Ch$ 1,116,515 million. The Physical sales that include the discontinued activities increased by 4.1% from lower repair work in the plant. On the other hand, operating revenues increased by Ch$ 8,357 million as amounting to 72,039 GWh (69,230 GWh in 2014). a result of better average sale price in connection to Resolution N°482 totaling Ch$ 7,320 million and higher revenues from non-recurrent maintenance payments of Ch$ 1,037 million. Physical sales reached 3.802 GWh A comparative table including discontinued operations of the generation and transmission business operating in 2015; namely, 1,032 GWh lower than the previous year when they reached 4,834 GWh. income between both periods on a country-by-country basis is shown below The effect of converting the financial statements from Argentinean pesos to Chilean pesos in both periods was a 0.8% increase in Chilean peso terms in December 2015, compared to December 2014. OPERATING INCOME BY COUNTRY Generation & Transmission (Figures in million Ch$) Discontinued Operations Continuing Operations País Operating Revenues Operating Costs Chile Dec-15 Dec-14 Argentina Dec-15 Dec-14 Brazil Dec-15 1,543,810 (1,141,991) 1,220,555 (974,841) 212,136 (160,927) 167,630 (128,921) Dec-14 Colombia Dec-15 Dec-14 Peru Dec-15 Dec-14 Total Continuing Operations Dec-15 Dec-14 Total Dec-15 Dec-14 437,033 (288,199) 778,768 (405,940) 753,385 (303,895) 437,887 (280,561) 401,695 (242,838) 1,735,820 (1,021,124) 1,762,869 (962,567) 3,279,630 (2,163,115) 2,983,424 (1,937,408) Operating Income Change in million Ch$ and % 401,819 156,104 245,715 63.5% 51,209 12,501 38,708 32.3% 148,834 (11.6%) 372,828 (76,662) 449,490 (17.1%) 157,326 (1,531) 158,857 (1.0%) 714,696 (85,607) 800,302 (10.7%) 1,116,515 70,499 1,046,016 6.7% 305,830 (174,274) 131,556 (17,278) 627 Management’s Analysis of Consolidated Financial Statements Brazil The operating income of our subsidiaries in Brazil amounted to Ch$ 131,556 million, Ch$ 17,278 million lower than the previous year when the operating income amounted to Ch$ 148,834 million. The operating income of our subsidiary Cachoeira Dourada decreased by Ch$ 9,880 million, given a lower operating revenue of Ch$ 67,402 million, mainly due to lower energy sales of 688 GWh as compared to the previous year and due to the conversion effect from Brazilian reals to Chilean pesos. On the other hand operating costs decreased by Ch$ 57,522 million, mainly due to lower energy purchases to free clients and spot market in order to cover the demand for Ch$ 49,032 million, due to lower Other variable procurements and services costs of Ch$ 4,080 million due to lower taxes and financial compensations for hydro resources and lower Transportation costs of Ch$ 2,481 million as a result of lower sales and lower Depreciation and impairment expenses of Ch$ 1,778 million. Physical sales amounted to 3,215 GWh this year, 688 GWH less than the previous year when they reached 3,903 GWh. The operating income of Central Fortaleza (CGTF) amounted to Ch$ 34,867 million; which is Ch$ 2,127 million lower than the previous year, due to lower energy sales of Ch$ 51,741 million as a result of lower sale prices, offset by lower operating costs of Ch$ 49,614 million, mainly due to lower energy sales of Ch$ 48,966 million due to lower market purchase prices. Physical sales reached 3,326 GWh in the present year, 121 GWh higher as compared to the previous year when they reached 3,205 GWh. Our subsidiary Cien shows a decrease of Ch$ 6,083 million in its operating income, as a result of lower operating revenues of Ch$ 12,133 million, due to the conversion effect from Brazilian reals to Chilean pesos, of Ch$ 12,901 million, offset by an increase in the Permitted Annual Income (RAP) due to higher energy dispatches in line with the instructions issued by the regulating agency amounting to Ch$ 768 million. Operating costs, on the other hand, decreased by Ch$ 6,050 million, mainly due to lower Depreciation and impairment expenses of Ch$ 3,600 million, mostly due to the conversion of Brazilian reals to Chilean pesos, lower Personnel expenses of Ch$ 1,370 million and lower other expenses by nature of Ch$ 862 million. The effect of converting the financial statements from Brazilian reals to Chilean pesos in both periods was a 19.1% decrease in Chilean peso terms in December 2015, compared to December 2014. 628 2015 Annual Report Enersis Colombia The operating income in Colombia decreased by 17.1%, amounting to Ch$ 372,828 million in 2015 as compared to the previous year whose operating income reached Ch$ 449,490 million. Emgesa’s operating income was impacted by higher operating costs of Ch$ 102,045 million, given higher energy purchases of Ch$ 81,968 million resulting from higher average purchase prices and Physical sales, higher fuel consumption of Ch$ 29,972 million as a result of higher thermal generation due to scarce rainfall, higher other expenses due to nature of Ch$ 5,111 million mainly due to the wealth acknowledgment tax decreed by the Colombian government of Ch$ 8,464 million and higher Personnel expenses of Ch$ 1,106 million. All of the above was partially offset by lower Other variable procurements and services of Ch$ 6,558 million, lower Depreciation and impairment expenses of Ch$ 5,377 million and lower transportation expenses of Ch$ 4,177 million; the three preceding concepts were mainly affected by the effects of the conversion of Colombian pesos to Chilean pesos. On the other hand, operating revenues were incremented by Ch$ 25,383 million, mainly attributable to higher Physical sales during the period of 1,113 GWh and to better average sale prices as compared to the previous year of Ch$ 141,431 million; the foregoing was partially offset by the effect of the conversion of Colombian pesos to Chilean pesos of Ch$ 122,712 million. Additionally, there were higher other sales totaling Ch$ 6,664 million corresponding to gas sales. The effect of converting the financial statements from Colombian pesos to Chilean pesos in both periods was a 16.5% decrease in Chilean peso term in December 2015 compared to December 2014. 629 Management’s Analysis of Consolidated Financial StatementsPeru The operating income of our subsidiaries in Peru amounted to Ch$ 157,326 million in 2015, showing a decrease of Ch$ 1,531 million compared to the previous year which amounted to Ch$ 158,857 million. Edegel’s operating revenues amounted to Ch$ 139,656 million, a decrease of Ch$ 1,502 million compared to the previous year. Its operating costs increased by Ch$ 30,160 million, mainly due to higher fuel consumption of Ch$ 9,521 million due to higher thermal generation, higher Depreciation and impairment expenses of Ch$ 7,333 million, higher capitalizations expenses, higher Other variable procurements and services costs of Ch$ 7,174 million, higher offsets on account of renewable energies, higher Transportation costs of Ch$ 5,815 million due to price hikes, higher other expenses by nature of Ch$ 3,667 million and higher Personnel expenses of Ch$ 1,848 million, offset by lower Spot market energy purchases of Ch$ 5,198 million. Operating revenues increased by Ch$ 28,658 million, mainly due to better average sale prices and in spite of lower Physical sales of 687 GWh amounting to Ch$ 23,614 million, higher Other tolling revenues of Ch$ 11,927 million, offset by lower Other operating revenues of Ch$ 6,883 million, mainly due to a higher 2014 comparative base on account of a casualty and insurance indemnification for the T-G7 turbine of Central Santa Rosa. Additionally, the subsidiary, Empresa Electrica de Piura, slightly increased its operating income by Ch$ 75 million compared to the previous year. The effect of converting the financial statements from new Peruvian soles into Chilean pesos in both periods was a 2.4% increase in Chilean peso terms in December 2015 compared to December 2014. 630 2015 Annual Report Enersis b) Discontinued operations: Chile The operating income in Chile increased from Ch$ 245,715 million as of December 2014 to Ch$ 401,819 million in 2015, mainly due to higher operating revenues of Ch$ 323,255 million, mostly due to higher Physical sales of 2,401 GWh compared to the previous year and to better average energy sale prices, as well as higher operating revenues contributed by the subsidiary GasAtacama of Ch$ 69,941 million, a company whose results has been consolidated since May 2014. On the other hand, operating costs increased by Ch$ 167,150 million when compared to the previous year, due to higher energy purchase costs of Ch$ 32,289 million due to higher physical purchases in the spot market, higher fuel consumption expenses of Ch$ 22,028 million, mainly explained by the incorporation of GasAtacama, higher transportation expenses of Ch$ 36,860 million, the regasification of GNL Chile and gas tolls, higher Other variable procurements and services of Ch$ 39,501 million mainly due to costs related to the agreement executed with AES Gener that permits the use of Endesa’s available GNL in Nueva Renca’s combined cycle for Ch$ 23,739 million, higher costs attributable to the purchase and transportation of water for the operation of Central San Isidro of Ch$ 9,441 million and other higher costs of Ch$ 6,321 million, higher Depreciation and impairment expenses of Ch$ 3,880 million, mainly as a result of the incorporation of GasAtacama for Ch$ 2,811 million, higher Expense capitalizations carried out during the second half of 2014 in San Isidro II, Bocamina II ,Tal Tal and Rapel for Ch$ 22,155 million, higher depreciation expenses in Celta of Ch$ 3,342 million due to the capitalization of the Ojos de Agua project and capitalizations of the central, a depreciation of Ch$ 2,522 million of Proyecto Eolico Waiwén wind project, offset by the reversed depreciation of Celta amounting to Ch$ 12,578 million, the depreciation of the Punta Alcalde project by Ch$ 12,581 million recorded in 2014 and the depreciation of El Melón tunnel in 2014 by Ch$ 2,604 million, higher other expenses due to nature of Ch$ 24.875 million, mainly due to higher organizational restructuring expenses, fines on account of penalties and litigation and higher Personnel expenses of Ch$ 7,718 million on account of Retirement plans and quitclaims. On April 22, 2014, our subsidiary Endesa Chile acquired 50% of the equity holdings of Inversiones GasAtacama Holding Limitada completing 100% of its property ownership. The acquired subsidiary, whose operating income has been acknowledged since May 2014, shows a better operating income of Ch$ 9,596 million compared to the previous year. The Enersis Américas Group distribution business, including the discontinued operations as if the operation would not have been done, shows an operating income decrease of Ch$ 33,503 million during the year, equivalent to 4.4% of the previous year and amounting to Ch$ 722,312 million. Physical sales increased by 1,229 GWh, equivalent to a 1.6% variation compared to that of the previous year totaling 78,732 GWh. The company’s client base grew by 448,000 to 15.2 million, 3% higher than the previous year. 631 Management’s Analysis of Consolidated Financial StatementsThe operating income of the distribution business, broken down by country including discontinued operations as if the operation would not have been done, is shown in the following table. OPERATING INCOME BY COUNTRY Distribution (Figures in million Ch$) Discontinued Operations Country Operating Revenues Operating Costs Chile Dec-15 Dec-14 Argentina Dec-15 Dec-14 Brazil Dec-15 1,257,732 (1,108,438) 1,127,893 (973,786) 607,345 (503,570) 371,412 (422,641) 1,836,864 (1,709,530) 1,969,226 884,467 982,771 562,046 478,700 3,890,723 3,802,109 5,148,455 4,930,001 (1,668,001) (648,880) (720,796) (454,341) (387,714) (3,317,705) (3,200,400) (4,426,143) (4,174,186) Operating Income Change in million Ch$ and % 149,294 (4,813) 154,107 (3.1%) 103,775 155,005 (51,229) 302.6% 127,334 (173,892) 301,226 (57.7%) 235,588 (26,388) 261,975 (10.1%) 107,705 16,719 90,986 18.4% 573,018 (28,690) 601,709 (4.8%) 722,312 (33,504) 755,815 (4.4%) Continuing Operations Colombia Dec-14 Dec-15 Dec-14 Dec-14 Dec-15 Dec-14 Dec-14 Perú Dec-15 Total Continuing Operations Total Dec-15 a) Continuing activities: Argentina In Argentina, our subsidiary Edesur shows a better operating income of Ch$ 155,005 million, going from a loss of Ch$ 51,229 million in the year 2014 to a profit of Ch$ 103,775 million in 2015, mostly attributable to: Operating revenues increased by Ch$ 235,933 million due to that the current period recorded revenues of Ch$ 351,464 million as a result of the application of the new Resolution N°32/2015 dated March 11; which, in order to pay for the expenses and investments associated to the normal supply of the public electric energy distribution service, approved a temporary increase of Edesur’s revenues, without it implying a tariff increase, as of February 1, 2015 amounting to Ch$ 305,941 million, the acknowledgment of costs not transferred onto the MMC tariff corresponding to January 2015 of Ch$ 11,551 million; additionally, it acknowledged an energy sales income of Ch 33,972 million since it also establishes that as of February 1, 2015 the funds coming from PUREE must be considered as part of the income of the distributor companies. All of the foregoing was offset by acknowledging income of Ch$ 132,374 million as of December 2014 as a result of the application of Resolution 250/13 that acknowledges costs not passed onto the MMC tariff and other services totaling Ch$ 5,524 million. Additionally, energy sales increased by Ch$ 22,367 million on account of higher Physical sales of 520 GWh during the period. Operating costs increased by Ch$ 80,929 million, mainly due to higher Personnel expenses of Ch$ 72,850 million, mainly attributable to Salary increases and quitclaims, Ch$ 10,499 million from other expenses by nature mostly due to higher contractor company costs, higher Depreciation and impairment expenses of Ch$ 2,187 million and Other variable procurements and services of Ch$ 1,055 million. All of the foregoing was offset by lower energy purchases to the local regulator of Ch$ 5,328 million. Energy losses increased to 1.5 p.p. reaching 12.3% as of December 2015 and the number of Edesur clients expanded by 15,400, exceeding 2.48 million clients. The effect of converting the financial statements from Argentinean pesos to Chilean pesos in both periods was a 0.8% increase in Chilean peso terms in December 2015, compared to December 2014. 632 2015 Annual Report Enersis The operating income of the distribution business, broken down by country including discontinued operations as if the operation would not have been done, is shown in the following table. OPERATING INCOME BY COUNTRY Distribution (Figures in million Ch$) Country Operating Revenues Operating Costs a) Continuing activities: Argentina Discontinued Operations Continuing Operations Chile Dec-15 Dec-14 Argentina Dec-15 Dec-14 Brazil Dec-15 Dec-14 Colombia Dec-15 Dec-14 Perú Dec-15 Dec-14 Total Continuing Operations Dec-15 Dec-14 Total Dec-15 Dec-14 1,257,732 (1,108,438) 1,127,893 (973,786) 607,345 (503,570) 371,412 1,836,864 (422,641) (1,709,530) 1,969,226 (1,668,001) 884,467 (648,880) 982,771 (720,796) 562,046 (454,341) 478,700 (387,714) 3,890,723 (3,317,705) 3,802,109 (3,200,400) 5,148,455 (4,426,143) 4,930,001 (4,174,186) Operating Income Change in million Ch$ and % 149,294 (4,813) 154,107 (3.1%) 103,775 155,005 (51,229) 302.6% 127,334 (173,892) 301,226 (57.7%) 235,588 (26,388) 261,975 (10.1%) 107,705 16,719 90,986 18.4% 573,018 (28,690) 601,709 (4.8%) 722,312 (33,504) 755,815 (4.4%) Brazil In Argentina, our subsidiary Edesur shows a better operating income of Ch$ 155,005 million, going from a loss In Brazil, the operating income of our distribution subsidiaries amounted to Ch$ 127.334 million, 57.7% less of Ch$ 51,229 million in the year 2014 to a profit of Ch$ 103,775 million in 2015, mostly attributable to: than the same period of 2014. Operating revenues increased by Ch$ 235,933 million due to that the current period recorded revenues of Ampla’s operating income amounted to Ch$ 26,423 million; which, when compared to the previous year’s Ch$ 351,464 million as a result of the application of the new Resolution N°32/2015 dated March 11; which, in Ch$ 183,846 million it represents a Ch$ 157,423 million decrease. This is mainly explained by higher energy order to pay for the expenses and investments associated to the normal supply of the public electric energy purchase costs of Ch$ 75,051 million, affected by higher prices due to the drought, partially offset by lower distribution service, approved a temporary increase of Edesur’s revenues, without it implying a tariff increase, Depreciation and impairment expenses of Ch$ 6,465 million, lower Asset write-offs and lower Transportation as of February 1, 2015 amounting to Ch$ 305,941 million, the acknowledgment of costs not transferred onto costs of Ch$ 10,170 million, mainly due to the effects of the conversion of Brazilian reals to Chilean pesos. the MMC tariff corresponding to January 2015 of Ch$ 11,551 million; additionally, it acknowledged an energy On the other hand, operating incomes decreased by Ch$ 98,895 million on account of lower energy sales sales income of Ch 33,972 million since it also establishes that as of February 1, 2015 the funds coming from incomes, mostly attributable to the effects of converting Brazilian reals to Chilean pesos despite better average PUREE must be considered as part of the income of the distributor companies. All of the foregoing was sale prices. offset by acknowledging income of Ch$ 132,374 million as of December 2014 as a result of the application of Resolution 250/13 that acknowledges costs not passed onto the MMC tariff and other services totaling Ch$ Physical sales decreased by 131 GWh reaching 11,547 GWh as of December 2015. Energy losses increased by 5,524 million. Additionally, energy sales increased by Ch$ 22,367 million on account of higher Physical sales 0.8 p.p. from 20.1% to 20.9% as of December 2015. Ampla’s client base grew by 121,400 clients, exceeding of 520 GWh during the period. 2.99 million clients. Operating costs increased by Ch$ 80,929 million, mainly due to higher Personnel expenses of Ch$ 72,850 Our subsidiary Coelce decreased its operating income by Ch$ 16,469 million, reaching Ch$ 100,911 million. million, mainly attributable to Salary increases and quitclaims, Ch$ 10,499 million from other expenses by The Ch$ 66,760 million lower operating income corresponds mainly to lower energy sales income due to the nature mostly due to higher contractor company costs, higher Depreciation and impairment expenses of Ch$ conversion effects of Brazilian reals to Chilean pesos, despite higher physical energy sales of 64 GWh and 2,187 million and Other variable procurements and services of Ch$ 1,055 million. All of the foregoing was lower energy sale prices. On the other hand, its operating costs decreased by Ch$ 50,291 million, due to lower offset by lower energy purchases to the local regulator of Ch$ 5,328 million. energy purchases of Ch$ 36,421 million, mainly due to the effects of converting Brazilian reals to Chilean pesos, offset by higher purchase prices due to the drought and by lower other Depreciation and impairment Energy losses increased to 1.5 p.p. reaching 12.3% as of December 2015 and the number of Edesur clients expenses amounting to Ch$ 18,318 million on account of the effects of converting Brazilian reals to Chilean expanded by 15,400, exceeding 2.48 million clients. pesos and of the 2014 tariff review effects. The effect of converting the financial statements from Argentinean pesos to Chilean pesos in both periods was Physical sales increased by 64 GWh reaching 11,229 GWh in 2015. Energy losses increased by 1 p.p. reaching a 0.8% increase in Chilean peso terms in December 2015, compared to December 2014. 13.7% as of December 2015 and the number of Coelce clients expanded by 132,400, exceeding 3.76 million clients. The effect of converting the financial statements from Brazilian reals to Chilean pesos in both periods was a 19.1% decrease in Chilean peso terms in December 2015, compared to 2014. 633 Management’s Analysis of Consolidated Financial StatementsColombia In Colombia, the operating income of Codensa reached Ch$ 235,588 million, reflecting a decrease of Ch$ 26,388 million compared to the previous year. This is explained because operating revenues decreased by Ch$ 98,304 million, mainly due to lower energy sales of Ch$ 85,362 million due to the conversion effect of Colombian pesos to Chilean pesos of Ch$ 133,406 million, offset by higher physical energy sales of 286 GWh and lower average sale prices of Ch$ 48,044 million, lower other services provided of Ch$ 18,186 million due to the conversion effect to Chilean pesos of Ch$ 28,353 million net of higher income on account of the leasing of grids and posts and public lighting infrastructure maintenance of Ch$ 10,167 million, offset by higher Other operating income of Ch$ 5,042 million, mainly on account of casualty indemnities. On the other hand, operating costs also decreased by Ch$ 71,916 million, mainly due to lower energy purchases of Ch$ 40,618 million due to the conversion effect of Ch$ 68,739 million, offset by higher energy purchases of Ch$ 28,121 million, lower Depreciation and impairment expenses of Ch$ 14,845 million, mainly due to conversion effects of conversion effects of Ch$ 12,277 million, lower transportation expenses of Ch$ 5,300 million for conversion effects of Ch$ 14,544 million, offset by higher expenses on account of the use of grids of Ch$ 9,243 million, lower other expenses due to nature of Ch$ 11,170 million, mainly due to conversion effects of Ch$ 11,160 million, lower expenses in grids maintenance and others totaling Ch$ 5,256 million, offset by the acknowledgment of the wealth tax of Ch$ 5,266 million decreed by the Colombian Government. Energy losses increased by 0.1 p.p. up to 7.3% as of December 2015 and the number of clients grew by 92,800, reaching more than 2.87 million clients. The effect of converting the financial statements from Colombian pesos to Chilean pesos in both periods was a 16.5% decrease in Chilean peso term in December 2015 compared to December 2014. Peru In Peru, our subsidiary Edelnor, shows an operating income of Ch$ 107,705 million, Ch$ 16,719 million higher than the last year, mainly explained by an increase in operating revenues of Ch$ 83,346 million, mainly due to higher Physical sales during the period. The foregoing was partially offset by higher operating costs of Ch$ 66,627 million, mostly attributable to higher energy purchases of Ch$ 58,910 million in order to cover a higher demand from clients, higher expenses in Other variable procurements and services of Ch$ 4,989 million, and higher Depreciation and impairment expenses of Ch$ 2,416 million on account of higher Expense capitalizations in medium and low-tension distribution lines. Physical sales increased by 286 GWh, reaching 7,624 GWh as of December 2015. Energy losses increased by 0,3 p.p. reaching 8.3% as of December 2015. The number of clients expanded by 43,100, reaching more than 1.34 million clients. The effect of converting the financial statements from new Peruvian soles into Chilean pesos in both periods was a 2.4 % increase in Chilean peso terms in December 2015 compared to December 2014. 634 2015 Annual Report Enersis b) Discontinued activities: Chile In Chile, our subsidiary Chilectra obtained an operating income of Ch$ 149,294 million, a decrease of Ch$ 4,813 million compared to the previous year, or the equivalent to 3.1%. This variation is mainly explained by higher operating revenues of Ch$ 129,839 million, as a consequence of higher energy sales of Ch$ 115,077 million, both due to higher Physical sales as well as increased tariffs to regulated clients and the higher acknowledgment for the re-liquidation of non-applied average Node Price Decrees and increased income from other services provided totaling Ch$ 16,359 million, mainly income on account of transmission tolls with generator companies totaling Ch$ 9,869 million and leases and maintenance of public lighting and layout of grids and other services for Ch$ 6,490 million. The higher operating costs of Ch$ 134,652 million, are the result of increased energy purchases of Ch$ 115,265 million due to higher Physical sales and higher purchase prices compared to the previous year, higher Variable procurement expenses and services of Ch$ 8,169 million, mainly resulting from compensations to clients on account of system failures and other costs, higher other Depreciation and impairment expenses of Ch$ 7,667 million on account of higher fixed asset capitalizations and higher non-collectability provisions, due to higher Transportation costs of Ch$ 4,541 million due to higher tolling costs and higher Personnel expenses of Ch$ 355 million. All of the above offset by lower other expenses by nature of Ch$ 1,345 million. Energy losses were capped at 5.3% for both years. Physical energy sales grew by 1.3% reaching 15,893 GWh during the present year and the client base expanded by 43,500 reaching 1.78 million clients. Following is a summary of the income, operating costs and operating income of Enersis Américas’ Group subsidiaries for the years ended December 2015 and 2014, including discontinued operations considering as if the operation would not have been done. Operating Income Detail (Including Discontinued Operations) (Figures in million Ch$) Company Endesa Chile consolidated Cachoeira Dourada CGTF Cien Chilectra S.A. Edesur S.A. Edelnor S.A. Ampla Coelce Codensa S.A. Inmob, Manso de Velasco Ltda,(1) Servicios Informaticos e Inmobiliarios Ltda(ex ICT) Cemsa Dock Sud EE Piura Holding Enersis y soc, inversión Consolidation Adjustments Ingresos de Explotación Dec-15 Costos de Explotación Explotación Ingresos de Explotación Dec-14 Costos de Explotación Explotación 2,442,790 91,563 159,052 58,667 1,257,732 607,345 562,046 1,026,680 810,184 884,467 (1,508,012) (29,590) (124,185) (22,629) (1,108,438) (503,570) (454,346) (1,000,257) (709,273) (648,880) 934,778 61,973 34,867 36,038 149,294 103,775 107,700 26,423 100,911 235,587 2,135,173 158,965 210,793 70,800 1,127,893 371,412 478,695 1,092,282 876,944 982,771 (1,286,157) (87,112) (173,799) (28,679) (973,786) (422,641) (387,722) (908,436) (759,564) (720,796) 849,016 71,853 36,994 42,121 154,107 (51,229) 90,973 183,846 117,380 261,975 - - - 12,596 (7,236) 5,360 8,661 (9,173) (512) 4,978 (6,520) (1,542) 2,270 69,963 58,093 (3,525) (66,653) (40,429) (1,256) 3,309 17,663 1,281 61,606 50,849 (2,115) (52,141) (33,261) (834) 9,465 17,588 52,678 (108,814) (56,136) 5,537 (21,491) (15,953) (393,345) 417,562 24,217 (388,699) 386,905 (1,794) Total 7,698,847 (1) Company merged in 2015 by Servicios Informaticos e Inmobiliarios Ltda.(ex ICT) (5,920,214) 1,778,633 7,253,876 (5,484,551) 1,769,325 635 Management’s Analysis of Consolidated Financial Statements Following are non-operating results including discontinued operations considering as if the operation would not have been done for the years ended in December 2015 and 2014: Consolidated Income Statement (including Discontinued Operations) (million Ch$) Net Financial Income Financial Income Financial Costs Gain (Loss) for indexed assets and liabilities Foreign currency exchange differences, net Other Non Operating Income Net Income From Sale of Assets Share of profit (loss) of associates accounted for using the equity method Net Income Before Taxes Income Tax Net Income Financial income Dic-15 (26,615) 310,040) (447,072) (4,427) 114,843 25,728 13,490 Dic-14 (263,1629 265,884 (491,858) 1,634 (38,822) 19,916 71,769 Variación % Variación 89,9% 16,6% 9.1% 370.9% 395.8% 29.2% (81.2%) 236,547 44,156 44,786 (6,061) 153,665 5,812 (58,279) 12,238 (51,853) 64,091 (123.6%) 1,777,745 (633,276) 1,144,469 1,526,079 (496,609) 1,029,470 251,666 (136,667) 114,999 16.5% (27.5%) 11.2% The financial result amounted to an expense of Ch$ 26,615 million, representing Ch$ 236,547 million less than in the year 2014. The foregoing is mostly explained by: Higher financial income of Ch$ 44,156 million mainly attributable to higher revenues of Ch$ 37,618 million as a consequence of the restatement of non-amortized assets at the end of the concession period in Ampla and Coelce at their New Replacement Value, higher revenues of Ch$ 19,906 million of the financial restatement of the regulated assets and liabilities of the Brazilian distributor companies Ampla and Coelce, higher revenues of Ch$ 38,641 million of the cancelation of financial expenses in Edesur and Costanera of debt with CAMMESA pursuant to Note SE1208/2015, higher income from accounts payable to VOSA of Ch$ 57,080 million, offset by lower income resulting from the placement of investments and other financial securities in Enersis of Ch$ 23,092 million and lower income of Ch$ 84,535 million resulting from the restructuring of Mitsubishi’s debt in our subsidiary Endesa Costanera in 2014. Lower financial expenses of Ch$ 44,786 million, mainly due to lower financial expenses in Brazilian subsidiaries of Ch$ 68,729 million as a result of the restatement of non-amortized assets at the end of the concession period in Ampla and Coelce at the New Replacement Value, offset by higher expenses in the Argentinean subsidiaries, Edesur and Endesa Costanera, totaling Ch$ 39,970 million, mainly due to higher debt with CAMMESA. The difference corresponds to lower financial expenses mostly caused by the conversion effects of the various functional currencies of our foreign subsidiaries of Ch$ 16,027 million, especially in the Brazilian subsidiaries. Higher indexation adjustment expenses of Ch$ 6,061 million, mainly due to the lower impact of UF-denominated financial debt of certain Chilean subsidiaries. Lower expenses from exchange rate differences of Ch$ 153,665 million, mainly due to positive exchange rate differences on account of the dollarization of VOSA’s accounts payable of Ch$ 141,560 million, a lower impact on DockSud of Ch$ 26,644 million as a result of the capitalization of all its debt toward the end of 2014 and due to a lower impact on Endesa Costanera of Ch$ 5,260 million due to lower dollar-denominated debt, as compared to the 2014 period. All of the foregoing was partially offset by higher foreign exchange currency differences. 636 2015 Annual Report Enersis Result from asset sales and other investments The lower result of Ch$ 58,279 million corresponds mainly to lower income resulting from the recalculation of the initial pre-existing shareholding of 50% of GasAtacama and the settlement of its foreign exchange currency differences of Ch$ 42,553 million recorded in 2014, lower income from the sale of Los Maitenes and Aguas Santiago Poniente (Enea project) shareholdings totaling Ch$ 21,078 as recorded in 2014, offset by income of Ch$ 4,207 million corresponding to income from the sale of El Melón tunnel in January 2015. Result from companies applying the participation accounting method The higher income of Ch$ 64.091 million corresponds mainly to the depreciation of Hidroaysen Project by Ch$ 69,066 million carried out in 2014 as a result from the uncertainty of the recovery of this investment. Corporate taxes Corporate Income Tax shows higher expenses of Ch$ 136,667 million, mostly explained by higher expenses in Endesa Chile of Ch$ 64,609 million, mainly due to better financial revenues as compared to the previous year, the impact of foreign exchange rate differences in foreign investments and the rate hike ordered by a new tax reform applied as of September 2014 in Chile, in Empresa Hidroelectrica Chocon amounting to Ch$ 53,119 million as a result of better financial revenues compared to the previous year due to dollarization in VOSA and Enersis totaling Ch$ 16,948 million, mostly attributable to the impact of foreign exchange rate differences. Analysis of the financial situation Assets (milions Ch$) Current Assets Non Current Assets Discontinued Operations Dec-15 SVS 2,589,626 7,535,593 5,323,936 Dec-15 Including Disc. Operations 3,437,084 12,012,070 - Dec-14 Change % Change 3,931,499 11,989,823 - (494,415) 22,247 - (12.6%) 0.2% - Total Assets 15,449,154 15,449,154 15,921,322 (472,168) (3.0%) The Company’s total assets, including those to be distributed to owners, decreased by Ch$ 472,168 million as of December 2015 when compared to December 2014; a circumstance that is mainly the consequence of: • Lower Current Assets of Ch$ 494,415 million equivalent to 12,6%, mostly explained by: - A decrease in Cash and Cash equivalent of Ch$ 375,320 million, mainly due to a decrease in Emgesa of Ch$ 157,624 million on account of payments to suppliers, dividends, wealth taxes and net-of-collection allowance payments, in Enel Brasil Group of Ch$ 106,538 million, payments to energy suppliers, net- of-collection loan payments and contributions from the CDE Fund, in Edelnor of Ch$ 44,807 million on energy supplier payments, dividends and net-of-collection financial debt, in Codensa of Ch$ 43,198 million on energy supplier payments, dividends and net-of-collection wealth taxes and in Edegel of Ch$ 26,938 million on energy supplier payments, taxes, dividends and financial debt. - A decrease in Other non-financial current assets of Ch$ 69,124 million, mainly explained by the effects of converting the various functional currencies of the companies and the settlements to supplier advances. 637 Management’s Analysis of Consolidated Financial Statements- A decrease in current tax assets of $ 42,812 million, mainly in Enersis of Ch$ 16,148 million and in Endesa Chile of Ch$ 25,593 million on account of lower Provisional Monthly Payments (PPM, in its Spanish acronym) and Credits on account of Dividends receivable. - A decrease in non-current assets or asset groups for their disposal classified as “kept for sale” of Ch$ 7,979 million corresponding to El Melón tunnel assets, a company that was sold in January 2015. • Higher non-current Assets of Ch$ 22,247 million equivalent to 0.2%, mostly due to: - An increase in the value of property, plant and equipment of Ch$ 198,519 million mainly corresponding to the new investments of the period of Ch$ 1,131,848 million and other transactions amounting to Ch$ 31,261 million mainly from dismantling provisions partially offset by the period’s Depreciation and impairment of Ch$ 383,297 million, the impact of converting the various functional currencies of the companies of Ch$ 575,643 million and other reductions totaling Ch$ 5,650 million. - An increase in Commercial Accounts Receivable and other Non-current receivables of Ch$ 121,446 million corresponding mostly to the dollarization of accounts receivable from Argentina’s regulatory authorities for the construction of Central de Vuelta Obligado (VOSA) in Endesa Costanera, Central Dock Sud and Hidroelectrica El Chocon, net of their conversion effect. - A Ch$ 143,933 million decrease in Intangible assets other than Goodwill, mainly in the new investments of the period of Ch$ 256,893 million, partially offset by the period’s depreciation and impairment of Ch$ 86,052 million, the effects of converting the various functional currencies of the companies of Ch$ 243,086 million and other transactions totaling Ch$ 71,688 million. - A Ch$ 79,397 million decrease in Goodwill, mostly explained by the effects of converting various foreign investment currencies. - Decreased assets on account of deferred taxes of Ch$ 61,921 million, mainly explained by the effects of converting the various functional currencies of the companies and the lower impact of assets in our Colombian subsidiaries, Emgesa and Codensa. - A decrease in Other non-current financial assets of Ch$ 19,543 million, mainly due to the effects of converting Brazilian reals into Chilean pesos in the Brazilian distributor companies, Ampla and Coelce, and the account receivable of IFRIC 12. 638 2015 Annual Report Enersis The Company’s Total Liabilities, including those to be distributed to the property owners, in addition to the company’s Total Equity Capital, show a decrease of Ch$ 472,168 million compared to December 2014. This is mostly due to a decrease in Non-current assets of Ch$ 423,310 million, the company’s Equity capital decrease of Ch$ 89,411 million and an increase in current liabilities of Ch$ 40,533 million. Liabilities (million Ch$) Current Liabilities Non Current Liabilities Discontinued Operations Total Shareholders' Equity Attributable to shareholders of the company Attributable to minority interest Dec-15 SVS 2,559,729 2,753,965 1,945,652 8,189,808 6,026,149 2,163,659 Dec-15 Including Disc. Operations 3,235,375 4,023,971 8,189,808 6,026,149 2,163,659 Dic-14 Change % Change 3,194,822 4,447,281 - 8,279,219 6,201,976 2,077,243 40,553 (423,310) - (89,411) (175,827) 86,416 1.3% (9.5%) - (1.1%) (2.8%) 4.2% Total Liabilities and Shareholders' equity 15,449,154 15,449,154 15,921,322 (472,168) (3.0%) • Non-current liabilities decreased by Ch$ 423,310 million, equivalent to a 9.5% variation, mostly explained by: - A decrease of Other non-current financial liabilities (financial debt and derivatives) of Ch$ 524,603 million, mainly due to a decrease in Enersis Américas of Ch$ 242,131 million on account of transferring the Bond and its derivative to short term, in Ampla Energia of Ch$ 105,853 million on account of transferring bonds and bank debt to short term plus the effects of converting Brazilian reals into Chilean pesos, in Coelce of Ch$ 98,032 million, mainly due to transferring bank debt to short term plus the effects of converting Brazilian reals to Chilean pesos, in Emgesa of Ch$ 81,284 million, mainly due to converting Colombian pesos to net Chilean pesos of the new Bank of Tokyo credit, in Codensa of Ch$ 68,859 million for transferring bond debt to short term and the effects of the conversion and in Edegel of Ch$ 64,178 million, mainly due to transferring loans and bonds to short term. All of the above was partially offset by Endesa Chile’s Ch$ 139,063 million increase mostly attributable to the effects of exchange rates in its foreign currency debt. - Increased commercial accounts payable and other non-current accounts payable of Ch$ 130,193 million, mainly explained by Edesur and Dock Sud due to their debt to CAMMESA on account of their extraordinary investment plans. - Increased other non-current provisions of Ch$ 42,721 million, mainly due to increased dismantling provisions of Ch$ 32,365 million in Bocamina II, San Isidro and Central Quinteros, in Emgesa of Ch$ 33,658 million for environmental liability provisions and future obligations to rural communities, offset by the conversion effects of the various functional currencies of the companies. - A decrease in provisions on account of non-current benefits to employees of Ch$ 27,636 million, mainly explained by the effects of converting the various functional currencies of the companies, net of 2015 actuarial restatements. - A decrease of Other non-financial, non-current liabilities of Ch$ 32,726 million, mainly due to the effects of converting the various functional currencies of the companies. 639 Management’s Analysis of Consolidated Financial Statements• Current liabilities increased very slightly by Ch$ 40,553 million, equivalent to a 1.2% variation, mainly explained by: - A decrease in commercial accounts and other current payable accounts of Ch$ 293,990 million, whose variation is due to decreases in Edesur of Ch$ 246,463 million, mostly from offsetting energy debt to CAMMESA with credits receivable of the Cost Monitoring Mechanism (MMC) totaling Ch$ 218,361 million and conversion effects, in Emgesa of Ch$ 105,078 million, mainly due to dividend payments to third parties, in Codensa of Ch$ 63,834 million, mainly due to dividend payments and payments to energy suppliers, and in Edelnor of Ch$ 20,043 million in payments to energy suppliers and others. The foregoing was offset by increases in Ampla of Ch$ 102,881 million on account of higher accounts payable to energy suppliers, in Chilectra of Ch$ 32,368 million due to higher accounts payable due to energy purchases, in Celta of Ch$ 11,986 million in accounts payable to suppliers, in Endesa Chile of Ch$ 8,702 million in accounts payable to suppliers and in Endesa Costanera of Ch$ 7,989 million due to increased sundry suppliers. - Higher other current financial liabilities of Ch$ 293,990 million, mostly due to the increase in Enersis Américas of Ch$ 246,463 million due to transferring from the long term the bond debt and its derivative, the increase in Emgesa of Ch$ 44,738 million due to bank loans net of bond debt payments, the increase in Coelce of Ch$ 40,795 million due to the transfer from long term and new loans net of bank payments, in Codensa of Ch$ 33,084 million for transferring bond debt from long term, the increase in Edegel of Ch$ 29,864 million for transferring from long term bank loans and bonds, and in Ampla Energia of Ch$ 15,580 million on account of new bank loans, transfers from long term net of payments. The foregoing was offset with a Ch$ 118,025 million reduction in Endesa Chile, mainly due to the payment of Yankee Bonds. - Lower Other current non-financial liabilities of Ch$ 83,928 million, mainly due to the effects of converting foreign currencies into Chilean pesos and transfers to accounts payable. - Increased Other current provisions of Ch$ 53,406 million, mostly environmental liabilities related to El Quimbo Project in our Colombian subsidiary, Emgesa, of Ch$ 70,756 million offset by the effect of converting Colombian pesos to Chilean pesos. - Higher Liabilities on account of current taxes of Ch$ 42,255 million, mostly higher income taxes and Provisional Monthly Payments chargeable to fiscal year 2016 net of the 2015 Income Tax Return. - Increased Accounts payable to related entities of Ch$ 21,456 million, mainly due to higher dividends payable to parent companies. - Reduced Liabilities included in asset groups for divestment classified as “held for sale” totaling Ch$ 5,488 million, corresponding to liabilities of El Melón tunnel, a company that was sold in January 2015. • The Company’s total Shareholders’ Equity decreased by Ch$ 89,411 million compared to December 2014. - The portion attributable to the controller’s property owners decreased by Ch$ 175,827 million, which is mostly explained by the period’s income of Ch$ 661,587 million, by a decrease in other reserves of Ch$ 504,754 million, mainly due to conversion differences of the period totaling Ch$ 442,819 million, cash flow hedges of Ch$ 60,939 million and other reserves totaling Ch$ 996 million. Additionally, due to the diminished impact of the accumulated profits obtained from the profits and losses allocated to the established benefit plans totaling Ch$ 12,152 million and due to the decrease of the final dividend amount for the year 2014 and the 30% legal dividend of 2015 amounting to Ch$ 320,508 million. 640 2015 Annual Report Enersis - Non-controlling shareholdings increased by Ch$ 86,416 million, which are mostly explained by the period’s income totaling Ch$ 482,883 million and by other increases totaling Ch$ 619 million, offset by a decrease in Other Integral results totaling Ch$ 243,973 million and the Ch$ 151,308 million dividend distribution to minority shareholders. The evolution of the main financial indicators, including the discontinued operations considered as if the operation would not have been done, is the following: Liquidity Leverage Profitability Indicator Current liquidity Acid ratio test (1) Working Capítal Leverage Short Term Debt Long Term Debt Financial Expenses Coverage (2) Operating Income/ Operating Revenues ROE (annualized) ROA (annualized) Unit Times Times MMCh$ Times % % Times % % % Dec-15 1.06 1.03 201,709 0.89 44.6% 55.4% 6.80 23.1% 10.8% 7.3% dic-14 Dec-14 Change % Change 1.23 1.18 736,677 0.92 41.8% 58.2% - - - - - - - - - - (0.17) (0.15) (534,968) (0.03) 2,8 p,p (2,8 p,p) (13.8%) (12.7%) (72.6%) (3.3%) 6.6% (4.8%) 3.83 2.97 77.7% 26.7% (3,6 p,p) (13.3%) 9.9% 6.6% 1 p,p 0,7 p,p 9.7% 10.3% (1) Current assets net from inventories and advanced payments (2) Considers EBITDA divided by financial expenses The liquidity index as of December 2015 reached 1.06 times, showing a negative variation of 13.8% compared to December 2014. The company has an excellent liquidity position, notwithstanding its lower cash as compared to December 2014. The leverage ratio was 0.89 times as of December 31, 2015, a 3.3% decrease compared to December 31, 2014, mainly due to lower non-current liabilities as compared to those of December 2014. The hedging against financial costs increased 2.97 times or the equivalent to 77.7% upon going from 3.83 times in December 2014 to 6.80 times in the present year, mainly due to the increased EBITDA and the decreased financial costs of the period compared to those of the previous year. The profitability index, measured in terms of operating results over the operating incomes diminished by 13.3%, reaching 23.1% as of December 2015. On the other hand, the controller’s property owners’ (dominant) return on equity reached 10.8%, with an increase of 9.7%, compared to the previous year, as a result of a better income of the controller company. The return on assets increased from 6.6% in December 2014 to 7.3% in the present year, mainly due to the better income of the period. 641 Management’s Analysis of Consolidated Financial StatementsThe evolution of the main economic indicators of continuing operations is the following: Liquidity Leverage Profitability Indicator Current liquidity Acid ratio test (1) Working Capítal Leverage Short Term Debt Long Term Debt Financial Expenses Coverage (2) Operating Income/ Operating Revenues ROE (annualized) ROA (annualized) Unit Times Times MMCh$ Times % % Times % % % Dec-15 1.01 0.97 29,897 0.65 48.2% 51.8% 6.06 23.7% 10.8% 7.3% (1) Current assets net from inventories and advanced payments (2) Considers EBITDA divided by financial expenses dic-14 Dec-14 Change 1.23 1.18 736,677 0.92 41.8% 58.2% - - - - - - - - - - (0.22) (0.21) (706,780) (0.27) 6,4 p,p, (6,4p,p,) % Change (17.9%) (17.8%) (95.9%) (29.3%) 15.2% (10.9%) 3.83 2.24 58.4% 26.7% (3 p,p,) (11.2%) 9.9% 6.6% 1 p,p, 0,7 p,p 9.7% 10.3% The liquidity index as of December 2015 reached 1.01 times, showing a variation of minus 17.9% compared to December 2014. The company has an excellent liquidity position, notwithstanding lower cash as compared to December 2014. The leverage ratio was 0.65 times as of December 31, 2015, a 29.3% decrease compared to December 31, 2014, mainly due to lower non-current liabilities as compared to those of December 2014 as a result of the application of IFRS 5 for discontinued operations. The hedging against financial costs increased 2.24 times or the equivalent to 58.4% upon going from 3.83 times in December 2014 to 6.06 times in the present year, mainly due to the increased EBITDA and the decreased financial costs of the period compared to those of the previous year. The profitability index, measured in terms of the operating result over the operating income diminished by 11.2%, reaching 23.7% as of December 2015, mainly due to the application of IFRS 5 for discontinued operations. On the other hand, the controller’s property owners’ (dominant) return on equity reached 10.8%, with an increase of 9.7%, compared to the previous year, as a result of a better income of the controller company. The return on assets increased from 6.6% in December 2014 to 7.3% in the present year, mainly due to the better income of the period. 642 2015 Annual Report Enersis Main cash flows During this period the Company generated a negative cash flow of Ch$ 352,063 million, including the discontinued operations considering as if the operation would not have been performed, comprised as follows: Cash Flow (million Ch$) From Operating Activities From Investing Activities From Financing Activities Dec-15 1,923,451 (1,215,299) (1,060,214) Die-14 1,698,038 (299,687) (1,283,460) Change 225,413 (915,612) 223,246 % Change 13.3% 305.5% (17.4%) Net Cash Flow (352,063) 114,891 (466,954) (406.4%) As of December 31, 2015 the activities of the operation generated a net cash flow of Ch$ 1,923,451 million, showing a 13.3% increase compared to the previous year. This flow was mostly comprised of sale proceeds and other income of Ch$ 9,048,843 million, collections of Other operating income of Ch$ 593,727 million, offset by payments to suppliers of Ch$ 4,875,218 million, payroll payments to employees of Ch$ 554,560 million, payment of Ch$ 451,695 in profit taxes and other operating payments of Ch$ 1,837,646 million. Investment activities generated a negative net cash flow of Ch$ 1,215,299 million, which is mostly explained by disbursements on account of the incorporation of real estate property and plant and equipment of Ch$ 1,090,624 million, the incorporation of intangible IFRIC 12 assets for Ch$ 271,937 million, capital contributions to Hidroaysen of Ch$ 2,550 million, payment of derivatives of futures and financial swap contracts for Ch$ 6,888 million. The foregoing offset by investments over 90 days of Ch$ 42,698 million, , received interests of Ch$ 58,725 million, received dividends of Ch$ 11,313million, a net cash inflow for the sale of El Melon tunnel investment of Ch$ 6,640 and other cash inflows totaling Ch$ 37,324 million. The financing activities generated a negative cash flow of Ch$ 1,060,214 million, mainly due to loan payments of Ch$ 634,675 million, dividend payments of Ch$ 612,046 million, interest payments of Ch$ 266,756 million and other financing disbursements totaling Ch$ 22,295 million, offset by new loans obtained totaling Ch$ 475,558 million. 643 Management’s Analysis of Consolidated Financial StatementsThe following table shows Disbursements on account of the incorporation of Property, Plant and Equipment and their Depreciation, including discontinued operations considering as if the operation would not have been performed, for the years 2015 and 2014: Company Endesa Chile Cachoeira Dourada CGTF CIEN Chilectra S.A. Edesur S.A. Edelnor S.A. Ampla (*) Coelce (*) Codensa S.A. Inmobiliaria Manso de Velasco Ltda,(1) Servicios Informaticos e Inmobiliarios Ltda(ex ICT) Holding Enersis y sociedades de inversión Cemsa Dock Sud EE Piura Payments for additions of Property, plant and equipment Dec-15 537,805 5,222 18,360 1,569 44,623 197,738 112,428 167,928 91,959 132,840 - 99 1,536 96 41,284 9,073 Dec-14 420,745 7,505 25,049 5,992 37,925 180,592 49,737 163,287 97,214 74,287 863 81 8,432 - 13,093 1,608 Depreciation Dec-15 225,787 5,003 5,678 11,165 35,821 13,230 29,074 42,109 29,748 59,475 - 114 (510) 49 11,497 5,505 Dec-14 204,119 6,182 6,691 14,222 28,154 10,772 26,510 51,202 48,049 71,999 260 43 (687) 30 5,722 5,911 Total 1,362,562 1,086,410 473,744 479,180 (*) Includes intangible assets concessions (1) Company merged in 2015 by Servicios Informaticos e Inmobiliarios Ltda.(ex ICT) 644 2015 Annual Report Enersis Main risks related to the operations of Enersis Américas Group The Group’s operations are subject to a broad set of governmental regulations, and any changes introduced in them could affect their operations, economic situation and operating income. The Group’s operative subsidiaries are subject to a wide range of tariff regulations and other aspects that govern their operations, both in Chile as well as in the other countries in which they operate. Consequently, the introduction of new laws or regulations, such as the modification of laws or regulations currently in effect, could impact their operations, economic situation and operating results Such new laws or regulations, on occasion, modify regulatory aspects that may affect existing entitlements; which, as the case might be, may adversely affect the group’s future income. The Group’s operations are subject to wide-ranging environmental regulations that Enersis Américas continuously meets. Eventual modifications introduced to such regulations could impact its operations, economic situation and operating income. Enersis Américas and its operative subsidiaries are subject to environmental regulations; which, among other things, require preparing and submitting Environmental Impact Studies for projects under study, obtaining licenses, permits and other mandatory authorizations and complying with all the requirements imposed by such licenses, permits and regulations. Just as with any regulated company, Enersis cannot guarantee that: • Public authorities will approve such environmental impact studies; • Public opposition will not derive in delays or modifications to any proposed project; • Laws or regulations will not be modified or interpreted in a manner such as to increase expenses or affect the Group’s operations, plants or plans. The Group’s commercial operations have been planned in a manner such as to mitigate eventual impacts derived from altered hydrological conditions. The operations of the Enersis Américas Group include hydroelectric generation and, therefore, they depend from the hydrological conditions that exist at each moment in the broad geographical areas where the Group’s hydroelectric generation facilities are located. If the hydrological conditions generate droughts or other conditions that may negatively impact hydroelectric generation, then, the outcome will be adversely affected, reason why Enersis has established -as an essential part of its commercial policy - to refrain from contractually committing 100% of its generation capacity. The electric business, in turn, is also affected by atmospheric conditions such as mean temperatures that condition consumption. Depending on weather conditions, differences may be generated on the margins obtained by the business. The financial situation and result of the operations may be adversely affected if the exposure to interest rate fluctuations, commodity prices and foreign exchange rates are not effectively managed. 645 Management’s Analysis of Consolidated Financial StatementsRate of interest risk Interest rate variations modify the fair value of those assets and liabilities that accrue a fixed rate of interest, as well as the future flows of assets and liabilities indexed at a variable rate of interest. The objective of managing the interest rate risk is to reach a debt structure equilibrium that would enable minimizing debt costs while reducing Income Statement volatility. In compliance with the Company’s hedging policy, the percentage of fixed and/or hedged debt over the total net debt was 58/% as of December 31, 2015. Depending on the Group’s estimates and on the objectives of its debt structure, various hedging operations are performed by contracting derivatives to mitigate such risks. The instruments currently used in order to comply with this policy are rate swaps of variable rates to fixed rates. The structure of the financial debt of the Enersis Américas Group, according to fixed plus hedged and variable rates of interest over total net debt, after the derivative contracts, is the following: Net position: Fixed Interest Rate Variable Interest Rate Total 31-12-2015 % 58% 42% 100% 31-12-2014 % 72% 28% 100% 21.1 Foreign exchange rate risk. Foreign exchange rate risks are primarily inherent to the following transactions: • Debt contracted by Group companies denominated in currencies other than those in which their cash flows are indexed. • Payments to be made for material purchases associated to projects and payment of corporate insurance policy premiums in currencies other than those in which their cash flows are indexed. • Income of Group companies directly linked to the fluctuation of currencies other than those of its own cash flows. • Cash flows from foreign subsidiaries to parent companies in Chile exposed to foreign exchange rate variations. In order to mitigate the foreign exchange rate risk, the hedging policy of the Enersis Américas Group regarding foreign exchange rates is based on cash flows and aims at maintaining a balance between USD-indexed flows and the level of assets and liabilities in such currency. The objective is to minimize the exposure of cash flows to foreign exchange rate variations. The instruments currently used in compliance with the policy are: cross-currency swaps and foreign exchange rate forwards. Similarly, the policy seeks to refinance debt in each company’s operating currency. 646 2015 Annual Report Enersis 21.2 Commodities risk. The Enersis Américas Group is exposed to the risk of price variations of certain commodities, primarily through: Fuel purchases in the process of electric energy generation. Spot energy purchases in local markets. In order to reduce the risk under extreme drought conditions, the Group has designed a commercial policy that defines sale commitment levels in line with the capacity of its generating centrals during a dry year, by including risk mitigation clauses in some contracts with free clients and, in the case of regulated clients subject to long- term tender processes, by determining indexing polynomials to reduce commodity exposure. In consideration of the operative conditions confronted by Chile’s electric generation market, plus the drought and commodity price volatility in international markets, the Company is continuously checking the convenience of hedging the impact of these price variations in its income. As of December 31, 2015 there were no such operations in effect. As of December 31, 2014, there were no hedging operations in effect. 21.3 Liquidity risk. The Group maintains a liquidity policy that consists in contracting long-term credit commitment facilities and temporary financial investments for amounts sufficient to support the projected needs of a given period; which, in turn, is a function of the overall situation and expectations of the debt and capital markets. The above-mentioned projected needs include maturities of net financial debt; namely, after financial derivatives. For additional information regarding the characteristics and the terms and conditions of such financial debt and financial derivatives (see notes 19, 21 and Annex 5 hereunder). As of December 31, 2015 the Enersis Américas Group had a liquidity position of M$ 1,185,163,344 in cash and cash equivalents and of M$ 34,332,376 in unconditionally-available long-term lines of credit. As of December 31, 2014, the Enersis Américas Group’s liquidity position amounted to M$ 1,571,759,564 in cash and cash equivalent and M$ 114,760,896 in unconditionally-available long-term lines of credit. 21.4 Credit risk. The Enersis Américas Group monitors its credit risks continuously and in detail. Commercial accounts receivable: Compared to the credit risks of accounts receivable from commercial activities, this is a risk that has been historically quite limited since the short collection term afforded our clients prevents significant individual accumulation. The foregoing is applied to both our electricity generation and distribution lines of business. In our electricity generation line of business, in certain countries, when confronted to payment defaults it is possible to cut off supply, and almost every contract establishes non-payment as a cause for contract termination. To that effect, we continuously monitor the credit risk and measure the maximum amounts exposed to payment risk; which, as said earlier, are quite limited. 647 Management’s Analysis of Consolidated Financial StatementsOur electricity distribution companies are authorized, in all cases, to cut off supply to non-performing customers, which is applied in line with the current regulations of each country; all of which facilitates the credit risk evaluation and control process; which, to be sure, is just as limited. Assets of a financial nature: Cash surpluses are invested in top domestic and foreign financial institutions (inasmuch as possible with a risk classification of investment grade or equivalent) with pre-established limits per institution. In our selection of banks for investments, we consider those ranked with investment grade according to the three top international risk classification agencies (Moody’s, S&P and Fitch). Our placements may be backed up with treasury bonds of those countries in which we operate and/or bank notes issued by top banks, preferring the latter since they offer better returns (always framed within current placement policies). Derivatives are contracted with highly solvent entities, so that all operations are contracted with investment grade institutions. Measuring the risks. The Enersis Américas Group prepares a Value at Risk (VaR) measurement for its own debt positions and financial derivatives, with the purpose of monitoring the risk assumed by the company, thus circumscribing Income Statement volatility. The portfolio of the positions included for the purposes of calculating the present Value at Risk, is comprised of: - Financial debt. - Derivatives for hedging Debt, Dividends and Projects. The calculated Value at Risk represents the possible value variation of the above-described positions portfolio within one day and with 95% certainty. To that effect we have studied the volatility of the risk variables that affect the value of the positions portfolio; which includes: - The USD Libor rate of interest. - The various currencies in which our companies operate, the habitual local indices of bank practices. - The exchange rates of the different currencies implied in the calculation. The Value at Risk calculation is based on the extrapolation of future market value scenarios (one quarter out) of the risk variables based on real observations for the same period (quarter) through a 5-year period. The Value at Risk for the next quarter, with 95% confidence level, is calculated as the percentile of the most adverse 5% of the possible quarterly changes. Taking into account the aforementioned hypotheses, the Value at Risk of the above-discussed positions one quarter out is: Ch$ 84,347,418 million. These values represent the potential increment of the debt and derivatives portfolio; therefore, these values at risk are intrinsically linked, among other factors, to the value of the portfolio at the end of each quarter. 648 2015 Annual Report Enersis Other risks. As is the habitual practice in bank credits and capital market operations, a portion of the financial indebtedness of Enersis and its subsidiary Endesa Chile is subject to cross-default provisions. If certain defaults (non- complying) are not indeed remedied, they may result in a cross default situation and certain liabilities of these companies may eventually become callable. Non-payment of debt of these companies –after any applicable grace period- or in the case of Endesa Chile, whose individual not-fully-paid capital may exceed the equivalent of US$ 50 million and whose arrears amount also exceeds the equivalent of US$ 50 million, could lead to the acceleration of the international line of credit. Moreover, this loan includes provisions according to which certain events other than non-payment, in Endesa Chile, such as bankruptcy, insolvency, final and adverse court rulings for an amount over US$ 100 million and the expropriation of assets, among others, may cause the acceleration of these credits. On the other hand, non-payment of any debt of Enersis and Endesa Chile or of any of their Chilean subsidiaries -after any applicable grace period- for a capital amount in excess of US$ 30 million, may lead to the mandatory acceleration of the Yankee Bonds. Albeit, in the specific case of Endesa Chile’s Yankee Bond, issued in April 2014 with expiration in 2024, that threshold is of US$ 50 million. Finally, in the case of the local bonds and the lines of credit of Enersis Américas and Endesa Chile, the accelerated payment of such debt is only triggered by Debtor non-performance. These lines were closed early on January 18, 2016 and no withdrawals (disbursements) were made from them since their subscription. New lines of credit are currently being negotiated and are expected to be subscribed during February of 2016 under similar contractual conditions than the previous ones, albeit considering the new corporate structure. There are no provisions in the credit agreements by means of which changes in the corporate classification of the debt of these companies by risk classification agencies may generate an obligation to make debt prepayments. 649 Management’s Analysis of Consolidated Financial StatementsBook value and economic value of assets Compared to the assets of higher importance, we should mention the following: Real estate properties, plant and equipment are valued at their purchasing cost, net of their corresponding accumulated depreciation and losses experienced on account of depreciation. Real estate properties, plant and equipment, net of their residual value, as the case might be, are depreciated lineally by distributing the cost of their different integral elements over their estimated useful life, which is the period during which the companies expect to use them. Such useful life estimate is reviewed periodically. The Goodwill (lower value of investments or commercial funds) generated in the consolidation exercise represents the excess acquisition cost over the Group’s participation in the fair value of assets and liabilities, including contingent liabilities and any non-controlling shareholdings identifiable in a Subsidiary Company as of the date of acquisition. Goodwill is not amortized, but rather, at the closing of each fiscal year it is estimated whether it has been the subject of any depreciation that might reduce its recoverable value for an amount below its registered net cost, in which case its value is restated accordingly. (See Note 3.e of the Financial Statements). Throughout the year and, primarily at its closing date, an evaluation is performed to determine whether there is any indication that any given asset would have possibly suffered a loss due to impairment. Should there be such an indication, we estimate the recoverable amount of such asset in order to determine, as the case might be, the amount of such impairment. If these are identifiable assets that do not generate independent cash flows, we then estimate the recoverability of the Cash Generating Unit to which such asset belongs, understanding as such the smallest identifiable group of assets that generates independent cash inflows. Foreign-currency-denominated assets are shown at their rate of exchange at the closing of the period. Notes and accounts receivable from related companies are classified according to their short and long-term maturities. Operations adhere to fair conditions similar to those that prevail in the market. In sum, assets are valued pursuant to the International Financial Reporting Standards (IFRS), whose criteria are set forth in Notes N°2 and 3 of these Financial Statements. 650 2015 Annual Report Enersis 651 Management’s Analysis of Consolidated Financial StatementsSummarized Financial Statements of the Subsidiaries SUMMARIZED FINANCIAL STATEMENTS OF SUBSIDIARIES Chilectra 2015 2014 Servicios Informaticos e Inmobiliarios Ltda, 2015 2014 Distrilima 2015 2014 Edesur 2015 2014 Endesa Chile 2015 2014 Codensa 2015 2014 Enel Brasil 2015 2014 Generalima 2015 2014 Cemsa 2015 2014 Dock Sud 2015 2014 Caboblanco 2015 2014 5,248 (36,956,051) 176,628,860 (983,732,902) (184,760) 973,087 764,264,413 766,740,394 1,531,004,807 1,247,900,614 9,831,551 1,257,732,165 363,516,173 54,831,044 1,112,657,590 1,112,653,169 4,421 1,531,004,807 273,999,263 5,753,242 (32,454,962) (29,082,449) (6,738,750) (63,795,453) 147,680,891 16,273,154 13,308,032 (1,426,792) Assets Current Assets Non-current Assets Total Assets Equity and Liabilities Current Liabilities Non-current Liabilities Equity Equity attributable to Shareholders of the Parent Non-controlling interests Total Equity and Liabilities Statement of Comprehensive Income, by Nature Revenues Other operating income Revenues and Other Operating Income Raw materials and consumables used Contibution Margin Other work performed by the entity and capitalized Employee benefits expense Depreciation and amortization expense Impairment loss recognized in the period’s profit or loss Other expenses Operating Income Other gains, net Financial income Financial costs Share of profit (loss) of associates and joint ventures accounted for using the equity method Foreign currency exchange differences Gains from indexed assets and liabilities, net Income from continuing operations before income taxes Income tax expense, continuing operations Net Income from Continuing Operations Net Income from Discontinued Operations Net Income Net Income attributable to Shareholders of the Parent Non-controlling Interests Net Income Other Comprehensive Income: Other Income and Expenses charged or credited in equity Total Comprehensive Income and Expenses Comprehensive Income Attributable to Shareholders of the Parent Comprehensive Income Attributable to Non-controlling Interests Total Comprehensive Income Statements of Changes in Equity Issued Capital Retained Earnings Share Premium Other reserves Equity attributable to Shareholders of the Parent Non-controlling interests Total Equity Statements of Cash Flow Cash flow from (used in) operating activities Cash flow from (used in) investing activities Cash flow from (used in) financing activities Net cash flow for the period Effect of exchange rate changes on cash and cash equivalents Effect of changes in scope of consolidation cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year 367,928,682 1,225,045,537 566,302 (480,887,352) 1,112,653,169 4,421 1,112,657,590 49,077,924 188,750,733 188,750,403 330 188,750,733 7,716,593 29,124,071 21,314,254 93,224 (106,554,830) (111,222,754) 139,672,809 192,068,742 (64,199,658) 77,527,979 77,527,979 77,527,648 331 300,765,617 1,240,468,967 1,541,234,584 244,981,389 72,612,724 1,223,640,471 54,816,036 11,561,340 66,377,376 5,586,877 1,305,133 59,485,366 49,661,060 12,658,737 62,319,797 116,371,663 675,858,105 792,229,768 142,931,833 587,886,652 730,818,485 191,441,460 443,412,233 634,853,693 409,109,177 405,106,897 814,216,074 4,412,561,440 2,866,208,893 7,278,770,333 1,038,057,558 6,199,614,341 7,237,671,899 207,553,675 847,774,289 254,296,273 796,102,019 854,733,661 928,936,117 1,994,170,371 2,303,014,999 1,055,327,964 1,183,232,390 2,790,272,390 3,157,748,660 22,954,619 91,195 23,045,814 28,225,496 873,712 29,099,208 46,722,731 126,188,102 172,910,833 27,295,230 72,509,102 99,804,332 54,357,844 81,815,036 43,338,831 80,059,963 136,172,880 123,398,794 6,426,379 1,595,766 54,297,652 192,540,953 269,823,997 329,864,818 165,061,350 271,208,226 294,548,909 431,630,046 174,966,573 28,257,074 739,412,769 137,796,785 (62,993,480) 2,527,875,495 1,207,004,759 3,543,890,079 1,392,737,593 2,321,047,965 3,523,886,341 247,749,856 281,940,697 525,637,411 337,839,517 358,873,772 653,756,271 725,006,818 481,334,130 959,822,164 486,519,101 1,411,509,301 1,716,592,366 21,098,368 24,701,137 1,947,446 4,398,071 25,736,485 67,304,446 79,869,902 19,320,789 15,583,458 64,900,085 19,831,659 47,845,465 68,495,756 13,222,522 47,895,051 62,281,221 5,697,317 50,472,490 56,169,807 20,328,170 8,150,819 27,690,818 5,388,518 47,434,910 52,823,428 18,110,685 7,052,044 27,660,699 1,223,636,381 56,810,189 51,814,313 179,145,813 159,576,876 28,257,074 (62,993,480) 2,648,189,907 2,700,280,484 525,637,411 486,519,101 1,005,026,634 1,210,004,048 27,690,818 27,660,699 1,947,446 4,398,071 56,135,366 47,286,137 43,335,752 38,072,987 4,090 1,541,234,584 2,675,177 66,377,376 2,483,339 62,319,797 150,719,005 792,229,768 134,972,033 730,818,485 - 634,853,693 - 814,216,074 895,700,172 7,278,770,333 823,605,857 7,237,671,899 - - 406,482,667 506,588,318 1,055,327,964 1,183,232,390 2,790,272,390 3,157,748,660 56,169,807 52,823,428 23,045,814 29,099,208 23,734,536 172,910,833 17,613,948 99,804,332 25,160,004 136,172,880 24,208,234 123,398,794 1,116,092,610 11,799,933 7,788,512 872,266 4,978,227 - 559,556,527 2,489,899 476,564,658 2,130,188 278,475,279 328,869,637 222,534,863 148,876,923 1,539,977,511 3,832,806 1,209,796,735 21,178,089 876,948,862 980,294,259 1,785,800,511 2,084,566,799 7,518,404 2,476,439 230,688,324 184,993,162 9,813 2,259,773 591,275 689,663 69,961,987 61,605,798 58,012,806 50,819,190 822 292 79,833 29,735 1,127,892,543 8,660,778 4,978,227 562,046,426 478,694,846 607,344,916 371,411,786 1,543,810,317 1,230,974,824 884,467,266 982,770,698 2,016,488,835 2,269,559,961 2,269,586 1,280,938 69,962,809 61,606,090 58,092,639 50,848,925 (855,757,752) - - (379,015,102) (315,115,521) (157,387,237) (161,995,240) (880,891,223) (750,216,671) (500,570,711) (547,593,754) (1,385,921,253) (1,405,383,543) (1,017,940) (203,349) (43,265,694) (34,976,794) (26,124,118) (20,916,046) 272,134,791 8,660,778 4,978,227 183,031,324 163,579,325 449,957,679 209,416,546 662,919,094 480,758,153 383,896,555 435,176,944 630,567,582 864,176,418 1,251,646 1,077,589 26,697,115 26,629,296 31,968,521 29,932,879 5,039,396 - - 4,282,006 3,300,324 34,701,198 23,153,744 15,250,810 16,466,173 4,448,164 4,446,424 10,165,042 12,046,728 146,345 118,880 362,810 (31,386,273) (6,926,535) (5,243,441) (22,398,764) (21,542,237) (226,741,261) (142,343,373) (70,969,357) (64,859,965) (36,740,363) (35,616,518) (100,162,085) (108,323,685) (274,254) (530,299) (1,975,607) (1,375,955) (5,817,647) (3,403,632) (2,569,372) (2,222,804) (27,377,925) (113,887) (43,259) (29,074,143) (26,510,068) (13,229,654) (10,772,411) (124,835,559) (101,304,909) (59,475,176) (71,998,972) (93,922,721) (126,563,269) (1,223) (1,194) (49,321) (30,453) (11,497,264) (5,722,420) (5,505,006) (5,911,335) (776,091) (63,919,908) 153,713,990 - 11,638,248 (3,464,300) - - (1,598,702) (1,747,322) (2,289,187) (2,559,659) 9,793,652 (12,461,456) (80,720) (2,401,454) (31,029,774) (29,563,651) (2,132,131) (511,775) 4,289,351 2,307,519 (67,657) (1,233,094) (1,541,567) - - (160,066) (26,541,656) 107,700,065 602,594 4,136,908 (19,250,476) (26,106,649) 90,973,373 31,910 3,387,823 (13,418,398) (138,623,389) 103,775,386 113,216 65,153,401 (70,851,224) (128,124,044) (51,229,197) - 28,970,377 (66,547,390) (90,339,822) 401,818,818 4,015,401 234,821 (64,206,719) (66,335,541) 252,262,455 42,651,567 1,586,033 (71,617,257) (56,461,106) 235,587,354 (128,486) 6,745,818 (67,631,399) 261,975,025 46,514 7,242,116 (177,209,919) 238,408,125 (6,751,675) 116,303,199 (169,482,196) 442,290,345 78,539,402 (247,549) (376,681) 2,197,565 7,791 (34,773,430) (33,912,253) (142,623,456) (227,164,548) (1,184,219) (618,492) (1,031,105) 903,328 2,611 (565,981) (482,533) (1,255,815) 238,710 319,094 (505,249) (834,068) 338,697 (142,264) (6,435,537) 3,309,477 149,772 20,326,664 (5,837,628) (8,038,472) 9,464,772 39,368 1,760,803 (3,014,903) (6,230,943) 17,663,200 106,250 744,100 (4,215,444) 17,583,296 8,885 577,939 (4,062,360) (3,035,761) (13,675) 4,187 - - - 34,434 34,721 8,905,045 (54,413,311) 753,329 2,561,678 120,851 (1,006) 227,828 (699,898) (250,591) 1,755,304 (831,020) (53,880,472) (21,240,269) 567,871 46,049 (10,271,991) 2,978,101 (1,056,929) (466,302) 340,012 259,788 39,281,160 (26,083,593) (2,437,407) (2,882,068) 632,973 21,360 756 - - - - 3,600,187 13,926,117 162,628,087 6,041,979 (1,473,049) 92,489,193 80,724,117 99,980,517 (89,602,509) 300,487,081 163,155,335 208,752,456 237,959,129 195,064,202 296,643,300 (412,473) (1,157,449) (357,999) (377,847) 57,229,445 (17,833,553) 12,013,783 12,252,291 (28,575,963) (765,180) 105,583 (28,191,648) (20,152,036) (463,471) 3,792,056 (76,655,819) (34,098,106) (84,883,213) (82,240,155) (76,715,148) (85,139,697) (285,187) (1,466,245) 36,614 (18,102,752) (6,292,935) (4,166,389) (3,166,090) 134,052,124 5,276,799 (1,367,466) 64,297,545 60,572,081 99,517,046 (85,810,453) 223,831,262 129,057,229 123,869,243 155,718,974 118,349,054 211,503,603 (697,660) (1,157,449) (1,824,244) (341,233) 39,126,693 (24,126,488) 7,847,394 9,086,201 16,671,032 - - - - - - 411,189,551 489,915,518 150,723,156 5,276,799 (1,367,466) 64,297,545 60,572,081 99,517,046 (85,810,453) 635,020,813 618,972,747 123,869,243 155,718,974 118,349,054 211,503,603 (697,660) (1,157,449) (1,824,244) (341,233) 39,126,693 (24,126,488) 7,847,394 9,086,201 150,722,842 314 150,723,156 5,084,961 191,838 5,276,799 (1,367,466) - (1,367,466) 33,563,540 30,734,005 64,297,545 31,711,176 28,860,905 60,572,081 99,517,046 - 99,517,046 (85,810,453) - (85,810,453) 392,868,115 242,152,698 635,020,813 334,556,376 284,416,371 618,972,747 94,401,235 23,947,819 160,938,515 50,565,088 211,503,603 123,869,243 155,718,974 118,349,054 (697,660) (1,157,449) (1,824,244) (341,233) 123,869,243 155,718,974 (697,660) (1,157,449) (1,824,244) (341,233) 27,403,863 11,722,830 39,126,693 (15,268,586) (8,857,902) (24,126,488) 4,758,765 3,088,629 7,847,394 5,466,367 3,619,834 9,086,201 (3,602,592) (64,325) (162,550) 7,349,619 14,254,103 (8,266,492) (5,608,787) (347,578,685) (103,941,294) (62,466,819) (50,659,795) (370,529,946) 23,085,738 727,779 2,137,862 (626,381) (594,258) (24,156,876) 6,343,207 893,502 4,030,838 147,120,564 5,212,474 (1,530,016) 71,647,164 74,826,184 91,250,554 (91,419,240) 287,442,128 515,031,453 61,402,424 105,059,179 (252,180,892) 234,589,341 30,119 980,413 (2,450,625) (935,491) 14,969,817 (17,783,281) 8,740,896 13,117,039 147,120,248 5,020,636 (1,530,016) 37,590,305 39,472,388 91,250,554 (91,419,240) 132,746,446 276,001,825 61,402,424 105,059,179 (162,353,636) 178,066,243 30,119 980,413 (2,450,625) (935,491) 10,424,275 (11,465,654) 5,258,627 7,949,867 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 316 191,838 - 34,056,859 35,353,796 - - 154,695,682 239,029,628 - (89,827,256) 56,523,098 - 4,545,542 (6,317,627) 3,482,269 5,167,172 147,120,564 5,212,474 (1,530,016) 71,647,164 74,826,184 91,250,554 (91,419,240) 287,442,128 515,031,453 61,402,424 105,059,179 (252,180,892) 234,589,341 30,119 980,413 (2,450,625) (935,491) 14,969,817 (17,783,281) 8,740,896 13,117,039 367,928,682 1,227,190,357 566,302 (372,048,960) 61,948,674 36,499,929 - (41,638,414) 61,948,674 31,491,546 - (41,625,907) 120,526,744 23,507,886 - 35,111,183 32,841,625 91,411,927 - 35,323,324 135,477,599 (17,446,199) - (89,774,326) 135,477,599 (126,742,945) - (71,728,134) 1,331,714,085 2,218,373,368 206,008,557 (1,107,906,103) 1,331,714,085 2,010,744,273 206,008,557 (848,186,431) 3,934,010 104,750,330 3,970,226 412,982,845 3,934,010 1,148,364,426 1,096,540,465 33,297,825 3,970,226 113,122,355 (147,247,407) - - 27,523,467 (2,842,848) 27,523,467 (2,016,532) 2,210,996 (1,608,282) 2,210,996 (247,974) 61,893,931 29,107,486 61,893,931 (9,749,359) - - 7,633,530 10,113,413 - 7,633,530 29,293,457 - 445,317,040 (256,460,147) 260,710,990 3,010,199 2,153,764 1,344,732 2,435,049 (33,291,005) (4,858,436) 25,588,809 1,146,000 1,223,636,381 56,810,189 51,814,313 179,145,813 159,576,876 28,257,074 (62,993,480) 2,648,189,907 2,700,280,484 525,637,411 486,519,101 1,005,026,634 1,210,004,048 27,690,818 27,660,699 1,947,446 4,398,071 57,710,412 47,286,136 43,335,752 38,072,987 4,090 1,223,640,471 2,675,177 59,485,366 2,483,339 54,297,652 150,719,005 329,864,818 134,972,033 294,548,909 - 28,257,074 - (62,993,480) 895,700,172 3,543,890,079 823,605,857 3,523,886,341 525,637,411 486,519,101 1,411,509,301 1,716,592,366 27,690,818 27,660,699 1,947,446 4,398,071 - 406,482,667 506,588,318 22,159,490 79,869,902 17,613,949 64,900,085 25,160,004 68,495,756 24,208,234 62,281,221 36,094,225 (7,619,798) 922,502 109,115,394 83,447,069 243,657,254 188,056,795 901,214,236 816,799,505 235,309,844 218,066,750 267,421,398 431,141,108 (354,919) (474,053) (105,002) (771,865) 39,117,103 7,389,246 26,593,425 25,702,141 13,004,063 7,626,633 (76,414) (114,212,151) (57,451,165) (208,791,432) (180,592,386) (488,595,470) (327,447,136) (112,561,292) (16,909,564) (267,731,554) (160,819,140) (4,499,516) (3,573,908) (95,520) 112,190 (28,343,674) (9,512,713) (25,068,063) 3,413,314 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (64,578,477) (15,480,189) 422,292 - - 22,774,490 7,716,593 (7,830) (995) - - 4,569 3,574 (841,519) (41,319,512) (10,068,877) (8,169,660) (9,632,579) (605,785,054) (452,258,979) (165,636,704) (169,208,067) (78,409,908) (326,502,620) 5,161,304 4,023,822 - (6,215,402) 1,627,361 (12,296,103) (11,480,210) 4,569 (46,416,269) 15,927,027 26,696,162 (2,168,170) (193,166,288) 37,093,390 (42,888,152) 31,949,119 (78,720,064) (56,180,652) 306,869 (24,139) (200,522) (659,675) 4,558,027 (496,106) (10,770,741) 17,635,245 - - - 483,021 3,021,911 (7,677,842) (881,277) 6,246,146 (24,242,264) (310,477) (15,243,874) (27,818,640) 3,847,445 (187,356) 20,588 (197,399) 20,011 (2,357,006) (780,520) 553,233 493,679 - - - - - - - - - - - - - - - - - 60,751,331 41,802,393 5,646,882 8,696,329 336,658,505 323,807,379 133,186,201 116,480,956 197,852,364 250,185,571 17,746 21,297 1,959,195 2,598,859 5,136,475 6,413,101 24,861,602 6,732,678 4,569 14,818,083 60,751,331 24,665,202 5,646,882 149,738,363 336,658,505 89,987,572 133,186,201 91,313,660 197,852,364 137,259 17,746 1,561,274 1,959,195 7,337,496 5,136,475 14,644,094 24,861,602 - - - - - - - - - - - - - - 654 2015 Annual Report Enersis SUMMARIZED FINANCIAL STATEMENTS OF SUBSIDIARIES Chilectra Servicios Informaticos e Inmobiliarios Ltda, 2015 2014 2015 2014 Distrilima 2015 2014 Edesur 2015 2014 Endesa Chile 2015 2014 Codensa 2015 2014 Enel Brasil 2015 2014 Generalima 2015 2014 Cemsa 2015 2014 Dock Sud 2015 2014 Caboblanco 2015 2014 764,264,413 300,765,617 766,740,394 1,240,468,967 1,531,004,807 1,541,234,584 363,516,173 54,831,044 244,981,389 72,612,724 1,112,657,590 1,223,640,471 54,816,036 11,561,340 66,377,376 5,586,877 1,305,133 59,485,366 49,661,060 12,658,737 62,319,797 116,371,663 675,858,105 792,229,768 142,931,833 587,886,652 730,818,485 191,441,460 443,412,233 634,853,693 409,109,177 4,412,561,440 1,038,057,558 405,106,897 2,866,208,893 6,199,614,341 814,216,074 7,278,770,333 7,237,671,899 207,553,675 847,774,289 1,055,327,964 254,296,273 928,936,117 1,183,232,390 796,102,019 1,994,170,371 2,790,272,390 854,733,661 2,303,014,999 3,157,748,660 6,426,379 1,595,766 54,297,652 192,540,953 269,823,997 329,864,818 165,061,350 271,208,226 294,548,909 431,630,046 174,966,573 739,412,769 137,796,785 2,527,875,495 1,207,004,759 1,392,737,593 2,321,047,965 28,257,074 (62,993,480) 3,543,890,079 3,523,886,341 247,749,856 281,940,697 525,637,411 337,839,517 358,873,772 486,519,101 653,756,271 725,006,818 1,411,509,301 481,334,130 959,822,164 1,716,592,366 5,697,317 50,472,490 56,169,807 20,328,170 8,150,819 27,690,818 5,388,518 47,434,910 52,823,428 18,110,685 7,052,044 27,660,699 22,954,619 91,195 23,045,814 21,098,368 - 1,947,446 28,225,496 873,712 29,099,208 46,722,731 126,188,102 172,910,833 27,295,230 72,509,102 99,804,332 54,357,844 81,815,036 136,172,880 43,338,831 80,059,963 123,398,794 24,701,137 - 4,398,071 25,736,485 67,304,446 79,869,902 19,320,789 15,583,458 64,900,085 19,831,659 47,845,465 68,495,756 13,222,522 47,895,051 62,281,221 1,112,653,169 1,223,636,381 56,810,189 51,814,313 179,145,813 159,576,876 28,257,074 (62,993,480) 2,648,189,907 2,700,280,484 525,637,411 486,519,101 1,005,026,634 1,210,004,048 27,690,818 27,660,699 1,947,446 4,398,071 56,135,366 47,286,137 43,335,752 38,072,987 Non-controlling interests Total Equity and Liabilities 4,421 4,090 1,531,004,807 1,541,234,584 2,675,177 66,377,376 2,483,339 62,319,797 150,719,005 792,229,768 134,972,033 730,818,485 - - 895,700,172 823,605,857 634,853,693 814,216,074 7,278,770,333 7,237,671,899 - 1,055,327,964 - 1,183,232,390 406,482,667 2,790,272,390 506,588,318 3,157,748,660 - 56,169,807 - 52,823,428 - 23,045,814 - 29,099,208 23,734,536 172,910,833 17,613,948 99,804,332 25,160,004 136,172,880 24,208,234 123,398,794 Statement of Comprehensive Income, by Nature 1,247,900,614 1,116,092,610 9,831,551 11,799,933 7,788,512 872,266 4,978,227 559,556,527 476,564,658 2,489,899 2,130,188 278,475,279 328,869,637 222,534,863 148,876,923 1,539,977,511 1,209,796,735 3,832,806 21,178,089 876,948,862 7,518,404 980,294,259 2,476,439 1,785,800,511 230,688,324 2,084,566,799 184,993,162 1,257,732,165 1,127,892,543 8,660,778 4,978,227 562,046,426 478,694,846 607,344,916 371,411,786 1,543,810,317 1,230,974,824 884,467,266 982,770,698 2,016,488,835 2,269,559,961 (983,732,902) (855,757,752) (379,015,102) (315,115,521) (157,387,237) (161,995,240) (880,891,223) (750,216,671) (500,570,711) (547,593,754) (1,385,921,253) (1,405,383,543) 273,999,263 272,134,791 8,660,778 4,978,227 183,031,324 163,579,325 449,957,679 209,416,546 662,919,094 480,758,153 383,896,555 435,176,944 630,567,582 864,176,418 - - - - - - - - - - 9,813 2,259,773 591,275 689,663 69,961,987 822 61,605,798 292 58,012,806 79,833 50,819,190 29,735 2,269,586 1,280,938 69,962,809 61,606,090 58,092,639 50,848,925 (1,017,940) (203,349) (43,265,694) (34,976,794) (26,124,118) (20,916,046) 1,251,646 1,077,589 26,697,115 26,629,296 31,968,521 29,932,879 5,753,242 5,039,396 4,282,006 3,300,324 34,701,198 23,153,744 15,250,810 16,466,173 4,448,164 4,446,424 10,165,042 12,046,728 146,345 118,880 - - 362,810 - - - (32,454,962) (31,386,273) (6,926,535) (5,243,441) (22,398,764) (21,542,237) (226,741,261) (142,343,373) (70,969,357) (64,859,965) (36,740,363) (35,616,518) (100,162,085) (108,323,685) (274,254) (530,299) (1,975,607) (1,375,955) (5,817,647) (3,403,632) (2,569,372) (2,222,804) (29,082,449) (27,377,925) (113,887) (43,259) (29,074,143) (26,510,068) (13,229,654) (10,772,411) (124,835,559) (101,304,909) (59,475,176) (71,998,972) (93,922,721) (126,563,269) (1,223) (1,194) (49,321) (30,453) (11,497,264) (5,722,420) (5,505,006) (5,911,335) (6,738,750) (776,091) (63,795,453) 147,680,891 16,273,154 13,308,032 (1,426,792) (63,919,908) 153,713,990 - 11,638,248 (3,464,300) (1,598,702) (1,747,322) (2,289,187) (2,559,659) 9,793,652 (12,461,456) (80,720) (2,401,454) (31,029,774) (29,563,651) - - - - - - - - (2,132,131) (511,775) 4,289,351 2,307,519 (67,657) (1,233,094) (1,541,567) (26,541,656) 107,700,065 602,594 4,136,908 (26,106,649) (138,623,389) 90,973,373 103,775,386 (128,124,044) (51,229,197) 31,910 3,387,823 113,216 65,153,401 (70,851,224) - 28,970,377 (66,547,390) (90,339,822) 401,818,818 4,015,401 234,821 (64,206,719) (66,335,541) 252,262,455 42,651,567 1,586,033 (71,617,257) (160,066) (19,250,476) (13,418,398) (56,461,106) 235,587,354 (128,486) 6,745,818 (34,773,430) (67,631,399) 261,975,025 46,514 7,242,116 (33,912,253) (177,209,919) 238,408,125 (6,751,675) 116,303,199 (142,623,456) (169,482,196) 442,290,345 - 78,539,402 (227,164,548) (247,549) (376,681) 2,197,565 7,791 (1,184,219) (618,492) (1,031,105) 903,328 2,611 (565,981) (482,533) (1,255,815) - 238,710 319,094 (505,249) (834,068) - 338,697 (142,264) (6,435,537) 3,309,477 149,772 20,326,664 (5,837,628) (8,038,472) 9,464,772 39,368 1,760,803 (3,014,903) (6,230,943) 17,663,200 106,250 744,100 (4,062,360) (4,215,444) 17,583,296 8,885 577,939 (3,035,761) 5,248 (13,675) 4,187 34,434 34,721 8,905,045 (54,413,311) 753,329 2,561,678 - - - - - - - - - - (184,760) 120,851 (1,006) 227,828 (699,898) (250,591) 1,755,304 (831,020) (53,880,472) (21,240,269) 567,871 46,049 (10,271,991) 2,978,101 (1,056,929) (466,302) 340,012 259,788 39,281,160 (26,083,593) (2,437,407) (2,882,068) 973,087 632,973 21,360 756 - 3,600,187 13,926,117 - - - - - - - - - - - - 176,628,860 162,628,087 6,041,979 (1,473,049) 92,489,193 80,724,117 99,980,517 (89,602,509) 300,487,081 163,155,335 208,752,456 237,959,129 195,064,202 296,643,300 (412,473) (1,157,449) (357,999) (377,847) 57,229,445 (17,833,553) 12,013,783 12,252,291 (36,956,051) (28,575,963) (765,180) 105,583 (28,191,648) (20,152,036) (463,471) 3,792,056 (76,655,819) (34,098,106) (84,883,213) (82,240,155) (76,715,148) (85,139,697) (285,187) - (1,466,245) 36,614 (18,102,752) (6,292,935) (4,166,389) (3,166,090) 139,672,809 134,052,124 5,276,799 (1,367,466) 64,297,545 60,572,081 99,517,046 (85,810,453) 223,831,262 129,057,229 123,869,243 155,718,974 118,349,054 211,503,603 (697,660) (1,157,449) (1,824,244) (341,233) 39,126,693 (24,126,488) 7,847,394 9,086,201 49,077,924 16,671,032 - - 411,189,551 489,915,518 - - - - - - - - - - - - 188,750,733 150,723,156 5,276,799 (1,367,466) 64,297,545 60,572,081 99,517,046 (85,810,453) 635,020,813 618,972,747 123,869,243 155,718,974 118,349,054 211,503,603 (697,660) (1,157,449) (1,824,244) (341,233) 39,126,693 (24,126,488) 7,847,394 9,086,201 188,750,403 150,722,842 330 314 188,750,733 150,723,156 5,084,961 191,838 5,276,799 (1,367,466) (1,367,466) 33,563,540 30,734,005 64,297,545 31,711,176 28,860,905 60,572,081 99,517,046 (85,810,453) 99,517,046 (85,810,453) - 392,868,115 242,152,698 635,020,813 334,556,376 284,416,371 618,972,747 123,869,243 - 123,869,243 155,718,974 - 155,718,974 94,401,235 23,947,819 118,349,054 160,938,515 50,565,088 211,503,603 (697,660) - (697,660) (1,157,449) - (1,157,449) (1,824,244) - (1,824,244) (341,233) - (341,233) 27,403,863 11,722,830 39,126,693 (15,268,586) (8,857,902) (24,126,488) 4,758,765 3,088,629 7,847,394 5,466,367 3,619,834 9,086,201 (111,222,754) (3,602,592) (64,325) (162,550) 7,349,619 14,254,103 (8,266,492) (5,608,787) (347,578,685) (103,941,294) (62,466,819) (50,659,795) (370,529,946) 23,085,738 727,779 2,137,862 (626,381) (594,258) (24,156,876) 6,343,207 893,502 4,030,838 77,527,979 147,120,564 5,212,474 (1,530,016) 71,647,164 74,826,184 91,250,554 (91,419,240) 287,442,128 515,031,453 61,402,424 105,059,179 (252,180,892) 234,589,341 30,119 980,413 (2,450,625) (935,491) 14,969,817 (17,783,281) 8,740,896 13,117,039 - - - - - - Attributable to Shareholders of 77,527,648 147,120,248 5,020,636 (1,530,016) 37,590,305 39,472,388 91,250,554 (91,419,240) 132,746,446 276,001,825 61,402,424 105,059,179 (162,353,636) 178,066,243 30,119 980,413 (2,450,625) (935,491) 10,424,275 (11,465,654) 5,258,627 7,949,867 331 316 191,838 - 34,056,859 35,353,796 - 154,695,682 239,029,628 - - (89,827,256) 56,523,098 - - - - 4,545,542 (6,317,627) 3,482,269 5,167,172 77,527,979 147,120,564 5,212,474 (1,530,016) 71,647,164 74,826,184 91,250,554 (91,419,240) 287,442,128 515,031,453 61,402,424 105,059,179 (252,180,892) 234,589,341 30,119 980,413 (2,450,625) (935,491) 14,969,817 (17,783,281) 8,740,896 13,117,039 367,928,682 367,928,682 1,225,045,537 1,227,190,357 61,948,674 36,499,929 61,948,674 31,491,546 120,526,744 23,507,886 32,841,625 91,411,927 135,477,599 (17,446,199) 135,477,599 1,331,714,085 1,331,714,085 (126,742,945) 2,218,373,368 2,010,744,273 566,302 566,302 - - - - - 206,008,557 206,008,557 (480,887,352) (372,048,960) (41,638,414) (41,625,907) 35,111,183 35,323,324 (89,774,326) (71,728,134) (1,107,906,103) (848,186,431) 3,934,010 104,750,330 3,970,226 412,982,845 3,934,010 33,297,825 3,970,226 445,317,040 1,148,364,426 113,122,355 - (256,460,147) 1,096,540,465 (147,247,407) - 260,710,990 27,523,467 (2,842,848) - 3,010,199 27,523,467 (2,016,532) - 2,153,764 2,210,996 (1,608,282) - 1,344,732 2,210,996 (247,974) - 2,435,049 61,893,931 29,107,486 - (33,291,005) 61,893,931 (9,749,359) - (4,858,436) 7,633,530 10,113,413 - 25,588,809 7,633,530 29,293,457 - 1,146,000 1,112,653,169 1,223,636,381 56,810,189 51,814,313 179,145,813 159,576,876 28,257,074 (62,993,480) 2,648,189,907 2,700,280,484 525,637,411 486,519,101 1,005,026,634 1,210,004,048 27,690,818 27,660,699 1,947,446 4,398,071 57,710,412 47,286,136 43,335,752 38,072,987 4,421 4,090 1,112,657,590 1,223,640,471 2,675,177 59,485,366 2,483,339 54,297,652 150,719,005 329,864,818 134,972,033 294,548,909 28,257,074 (62,993,480) 3,543,890,079 3,523,886,341 - 895,700,172 823,605,857 - 525,637,411 - 486,519,101 406,482,667 1,411,509,301 506,588,318 1,716,592,366 - 27,690,818 - 27,660,699 - 1,947,446 - 4,398,071 22,159,490 79,869,902 17,613,949 64,900,085 25,160,004 68,495,756 24,208,234 62,281,221 192,068,742 36,094,225 (7,619,798) 922,502 109,115,394 83,447,069 243,657,254 188,056,795 901,214,236 816,799,505 235,309,844 218,066,750 267,421,398 431,141,108 (354,919) (474,053) (105,002) (771,865) 39,117,103 7,389,246 26,593,425 25,702,141 (64,199,658) 13,004,063 7,626,633 (76,414) (114,212,151) (57,451,165) (208,791,432) (180,592,386) (488,595,470) (327,447,136) (112,561,292) (16,909,564) (267,731,554) (160,819,140) (4,499,516) (3,573,908) (95,520) 112,190 (28,343,674) (9,512,713) (25,068,063) 3,413,314 Net cash flow for the period 21,314,254 (15,480,189) 4,569 (46,416,269) 15,927,027 26,696,162 (2,168,170) (193,166,288) 37,093,390 (42,888,152) 31,949,119 (78,720,064) (56,180,652) 306,869 (24,139) (200,522) (659,675) 4,558,027 (496,106) (10,770,741) 17,635,245 (106,554,830) (64,578,477) (841,519) (41,319,512) (10,068,877) (8,169,660) (9,632,579) (605,785,054) (452,258,979) (165,636,704) (169,208,067) (78,409,908) (326,502,620) 5,161,304 4,023,822 - - (6,215,402) 1,627,361 (12,296,103) (11,480,210) 93,224 422,292 483,021 3,021,911 (7,677,842) (881,277) 6,246,146 (24,242,264) (310,477) (15,243,874) (27,818,640) 3,847,445 (187,356) 20,588 (197,399) 20,011 (2,357,006) (780,520) 553,233 493,679 - - - - - - - - - - - - - - - - - - - - 7,716,593 22,774,490 60,751,331 41,802,393 5,646,882 8,696,329 336,658,505 323,807,379 133,186,201 116,480,956 197,852,364 250,185,571 17,746 21,297 1,959,195 2,598,859 5,136,475 6,413,101 24,861,602 6,732,678 29,124,071 7,716,593 4,569 14,818,083 60,751,331 24,665,202 5,646,882 149,738,363 336,658,505 89,987,572 133,186,201 91,313,660 197,852,364 137,259 17,746 1,561,274 1,959,195 7,337,496 5,136,475 14,644,094 24,861,602 Assets Current Assets Non-current Assets Total Assets Equity and Liabilities Current Liabilities Non-current Liabilities Equity the Parent Equity attributable to Shareholders of Revenues Other operating income Revenues and Other Operating Raw materials and consumables Income used Contibution Margin Other work performed by the entity and capitalized Employee benefits expense Depreciation and amortization expense Impairment loss recognized in the period’s profit or loss Other expenses Operating Income Other gains, net Financial income Financial costs Share of profit (loss) of associates and joint ventures accounted for using the equity method Foreign currency exchange Gains from indexed assets and differences liabilities, net Income from continuing operations before income taxes Income tax expense, continuing Net Income from Continuing Net Income from Discontinued operations Operations Operations Net Income Net Income attributable to Shareholders of the Parent Non-controlling Interests Net Income Other Comprehensive Income: Other Income and Expenses charged or credited in equity Total Comprehensive Income and Expenses Comprehensive Income the Parent Comprehensive Income Attributable to Non-controlling Interests Total Comprehensive Income Statements of Changes in Equity Issued Capital Retained Earnings Share Premium Other reserves Equity attributable to Shareholders of the Parent Non-controlling interests Total Equity Statements of Cash Flow Cash flow from (used in) operating Cash flow from (used in) investing Cash flow from (used in) financing activities activities activities Effect of exchange rate changes on cash and cash equivalents Effect of changes in scope of consolidation cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year - - - - - - - - - - - - - - - (7,830) (995) - - 4,569 3,574 - - - - - - 655 Summarized Financial Statements of the Subsidiaries

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