Enel Americas (ENIA) 6-KCurrent report (foreign)

FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

For the month of October, 2022

Commission File Number: 001-12440

Enel Américas S.A.
(Translation of Registrant’s Name into English)

Santa Rosa 76
Santiago, Chile
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form 40-F:

Form 20-F  [X]Form 40-F  []

Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes [  ]No [X]

Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes [  ]No [X]

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

PRESS RELEASE

CONSOLIDATED FINANCIAL STATEMENTS OF ENEL AMÉRICAS GROUP

AS OF SEPTEMBER 30, 2022

(Figures expressed in millions of US dollars)

Accumulated revenues as of September, registered a 0.5% reduction compared to the same period in 2021, reaching US$ 11,619 million, also explained by lower revenues in Brazil, partially offset by higher revenues in the rest of the countries.

At a cumulative level, EBITDA reached US$ 3,425 million, 17.1% more than the accumulated amount as of September 30, 2021.

At a cumulative level, EBIT decreased by 25.8% to US$ 1,458 million. Excluding the aforementioned impact and the impairment loss associated with the sale process of Enel Generación Fortaleza for US$ 77 million, recorded in the second quarter, EBIT would have increased by US$ 356 million, equivalent to 18.1%.

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

The net income accumulated till September reached a US$ 103 million loss, also affected by the recognition of losses associated with the aforementioned sales processes. Excluding this effect, the accumulated net income would have increased by US$ 259 million, equivalent to 41.6%.

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

RELEVANT INFORMATION TO THE ANALYSIS OF THESE FINANCIAL STATEMENTS

On September 21, 2020, the Board of Directors of Enel Américas unanimously resolved to initiate a merger process aimed at the acquisition by Enel Américas of EGP Américas SpA ("EGP Américas") through a merger with and into Enel Américas (hereinafter the "Merger"). Immediately prior to the Merger, EGP Américas, a newly formed company, would keep Enel Green Power S.p.A.'s renewable energy generation business in Central and South America, excluding Chile.

The Merger, which entered into force on April 1, 2021, is in line with the Group's strategy and development plans, considering the high priority in the promotion of renewable energies carried out in the region, which makes it possible to accelerate the positioning of Enel Américas within the energy transition scenario and turn it into the leading company in Central and South America in energy generation and distribution. As a result of the Merger, Enel Américas has strengthened its renewable energy generation business, as well as diversified geographically, through the incorporation of assets in Costa Rica, Guatemala, and Panama, in addition to acquiring new assets in South American countries where it was already present, increasing its installed capacity in the region by 5 GW of operating and construction capacity, in addition to a pipeline that will be evaluated during the operation.

At an extraordinary shareholders' meeting held on December 18, 2020, Enel Américas shareholders approved the Merger, subject to the compliance with certain conditions precedent.

Finally, the Merger was finalized on April 1, 2021, incorporating the following main companies from that date on:

On the same date, April 1, 2021, all the amendments to the articles of association of Enel Américas approved by the Board, consisting of the respective capital increase and the elimination of the limitations and restrictions established in the statutes by application of Title XII of Decree Law No. 3,500 of 1980 – with the sole exception of the Investment and Financing Policy that remains – become effective, in particular, in the case of a shareholder and his or her related persons not being able to concentrate more than 65% of Enel Américas’ voting capital.

(*) After the incorporation of the Brazilian holding company of renewable companies, during 2021 this company merged with Enel Brasil, the latter being the legal continuator. 

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

On March 1, 2022, the merger by absorption of our subsidiaries Emgesa S.A. ESP (Sociedad Absorbente), Codensa S.A. ESP, Enel Green Power Colombia S.A.S. ESP and ESSA2 SpA (Absorbed Companies) was completed. The new corporate name of the merged company is Enel Colombia S.A. ESP, a company in which Enel Américas holds a 57.345% stake as a result of this operation.

In order to lead the sustainability actions of the sector and to prioritize investments in a clean energy matrix, the company initiated in 2022 studies for the sale of Central Geradora Termelétrica Fortaleza S.A. (CGTF), a Brazilian subsidiary authorized to produce energy independently, an authorization granted by the Brazilian regulatory entity (ANEEL).

On June 9, 2022, shortly after the feasibility study, the Group signed a sale agreement of the subsidiary with a Brazilian group that already operates in the thermoelectric generation market. The sale price established in the contract was BRL 467 million (MUS$ 89,302) and additional payments are also foreseen for each energy sales contract signed by CGTF, already under the responsibility of the buyer (until December 31, 2028). To carry out the sale, the contract has set forth conditions precedent, one of them being the approval of the transaction by the competent entity in Brazil (CADE – Conselho Administrativo de Defesa Econômica).

Considering the sale process, as established in IFRS 5 "Non-current assets held for sale and discontinued operations" and following the accounting criteria established in note 3.k), the assets and liabilities of the subsidiary were classified as held for sale, the former being measured by the lower of their book value and fair value. As a result, at the end of the first half of 2022, an impairment adjustment for Enel Generación Fortaleza's long-lived assets of US$ 77 million was recognized.

Finally, the sale materialized on August 23, 2022, generating an additional US $ 131 million loss on the sale of this subsidiary.

On September 23, 2022, our subsidiary Enel Brasil signed a share purchase agreement with Equatorial Participações e Investimentos S.A., a subsidiary of Equatorial Energia S.A. (collectively "Equatorial"), through which, and subject to the compliance with certain conditions precedent, Enel Brasil will dispose of 99.9% of the shares issued by Enel Distribución Goiás, owned by Enel Brasil S.A. (the "Sale").

Some of the agreed conditions precedent refer to the authorizations of the Brazilian regulatory bodies Agência Nacional de Energia Elétrica ("ANEEL") and the Conselho Administrativo de Defesa Econômica ("CADE").

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

Enel Goiás is a Brazilian energy distributor located in the State of Goiás, with a concession area of 337 thousand km2, with 3.3 million customers in 237 municipalities.

Should the sale be approved, the subsidiary Enel Brasil S.A. would receive approximately BRL 7,292 million, (equivalent to USD 1,400 million), of which BRL 1,575 million (equivalent to US$ 300 million) correspond to its equity interest and would be paid by Equatorial at closing, which is expected to occur during December, and BRL 5,717 million (equivalent to US$ 1,100 million) for the prepayment of intercompany loans, of which US$ 600 million correspond to Enel Brasil and US$ 500 million to Enel Finance International, a company related to Enel Américas' controller, Enel SpA, which would be paid by Enel Distribución Goiás within twelve months of the closing of the transaction. All of the above is subject to positive or negative adjustments, depending on the terms of the agreement between the parties.

In addition to this amount, the parties have agreed on an earn-out payment mechanism, based on the result of certain contingencies that are in progress, whose estimate to date is not quantifiable.

Considering the sale process, as established in IFRS 5 "Non-current assets held for sale and discontinued operations" and following the accounting criteria established in note 3.k), the assets and liabilities of the subsidiary were classified as held for sale, the former being measured by the lower of their book value and fair value. As a result of the above, as of September 30, 2022, an impairment adjustment for Goiás' long-lived assets of US$ 786 million was recognized.

As a result of the review of the accounting policies applied, at the end of 2021 it was concluded that in order to achieve a better presentation of the operational and financial performance of the electric power distribution developed by its subsidiaries in Brazil, the updating of the financial assets, which represent the value to be recovered at the end of the corresponding concessions (compensation value) and originally presented as financial income, could be more appropriately classified as operating income, along with other income related to its core business.

The justification of this change in criteria is detailed in footnote 2.2. (c) of the consolidated financial statements.

In accordance with the provisions of IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors", as a result of the accounting change explained in the preceding paragraphs, the Group made retrospective reclassifications to the comprehensive consolidated income statements for the period ended on September 30, 2021, originally issued on October 27, 2021. The reclassifications did not change total assets, equity, net income, and cash flows.

For the purposes of this Press Release, all the figures presented in consolidated terms, as well as those individual figures that affect each of the distribution Companies in Brazil have been reclassified to achieve adequate comparability for the 2022 and 2021 periods.

For the purposes of a better analysis, the amounts by which financial income has decreased and other operating income has increased are presented in the figures shown in the Press Release issued on September 30, 2021:

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

The figures in this report are expressed in millions of US dollars and have been rounded up for the ease of presentation. For this reason, it is possible that when adding the figures contained in the tables the result is not exactly equal to the total of the table.

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

SUMMARY BY BUSINESS SEGMENT

Generation and transmission

During the third quarter of 2022, EBITDA in the generation and transmission business remained in line with the same period of the previous year, reaching US$ 557 million, equivalent to -0.1%. This is explained by lower results in Brazil, Argentina, and Colombia, partially offset by higher EBITDA in Peru.

At a cumulative level, EBITDA increased by 16.1%, mainly due to the change in perimeter due to the consolidation of EGPA as of April 1, 2021.

Energy sales increased by 12.5% in the quarter while generation increased by 8.3%.

Distribution

EBITDA in distribution decreased by 11.9% in the third quarter of 2022 compared to the same period of the previous year, reaching US$ 537 million. This is explained by a lower result in Brazil and Argentina, partially offset by improvements in Colombia and Peru.

At a cumulative level, there was a 16.1% increase in EBITDA compared to the same period of the previous year, explained by a better result in all countries except Argentina.

At the end of September 2022, the number of consolidated clients showed an increase of 541 thousand clients or 2.1% compared to September of the previous year, reaching more than 26.5 million, while physical sales were in line during the quarter.

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

FINANCIAL SUMMARY

The Company’s available liquidity has remained strong, as shown below:

(*) Includes US$ 21 million of company cash reclassified in the "Assets held for sale" account. These companies are: USME, Fontibón, Bogotá and Enel Distribución Goiás.

(**) It includes two committed lines of credit available between parties related to Enel Finance International (EFI). One of them from Enel Américas for an available amount of US$ 265 million and another from EGP Peru with an available balance of US$ 30 million.

The rise in interest rates at Enel Américas (6.1% as of December 21 vs. 9.4% as of September 22) was mainly due to increases in interest rates in Brazil (CDI) and Colombia (IBR), despite the lower financial cost of the debt of Enel Américas Holding. Despite this, it should be noted that there is an improvement in the financial margin of the debt, as a result of new debt takings in the region.

 Hedging and protection (*):

To mitigate the financial risks associated with foreign exchange rate and interest rate fluctuations, Enel Américas has established policies and procedures aimed at protecting its financial statements against the volatility of these variables.

(*) It includes US$ 372 million exchange rate forward of the companies reclassified in the "Assets held for sale" account for the companies Enel Distribución Goiás and USME.

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

MARKETS IN WHICH THE COMPANY OPERATES

Enel Américas owns and operates generation, transmission and distribution companies in Argentina, Brazil, Colombia, Costa Rica, Guatemala, Panama, and Peru. Virtually all our revenues and cash flows come from the operations of our subsidiaries and associates in these seven countries.

Generation and Transmission Business Segment

In total, the net installed capacity of the Enel Américas Group amounts to 15,993 MW as of September 30, 2022. 70.7% of consolidated generation capacity comes from hydroelectric, wind and solar sources, and 29.3% from thermal sources. This capacity and the mix of energy sources have been achieved thanks to the incorporation of EGPA during 2021, which is expected to continue growing in the future, increasing the percentage of renewable generation sources over time. At the same time, the sale of Enel Generación Fortaleza in Brazil, materialized in August 2022, decreases the Group's thermal installed capacity, leaving Brazil with 100% of installed capacity on renewable sources.

The Group carries out the generation business through the subsidiaries Enel Generación Costanera, Enel Generación el Chocón, Central Dock Sud and Enel Green Power Argentina S.A. in Argentina, EGP Cachoeira Dourada, Enel Generación Fortaleza (until August 2022), EGP Volta Grande and Enel Brasil S.A. (parent company of the EGP companies) in Brazil, Enel Green Power Costa Rica S.A., Enel Colombia S.A. ESP (New company that continues Emgesa, which also merged Enel Green Power Colombia S.A.S ESP), Enel Green Power Guatemala S.A., Enel Green Power Panamá S.R.L. and Enel Generación Perú, Enel Generación Piura, and Enel Green Power Perú S.A.C. in Peru. The electricity transmission business is mainly carried out through an interconnection line between Argentina and Brazil, through Enel CIEN, a subsidiary of Enel Brasil, with a transmission capacity of 2,200 MW.

The following table summarizes the physical information of the generation segment, in accumulated and quarterly terms as of September 30, 2022, and 2021, for each subsidiary:

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

Distribution segment

Distribution business is carried out via subsidiaries as Edesur in Argentina, Enel Distribución Río, Enel Distribución Ceará, Enel Distribución Goiás (company in process of sale) and Enel Distribución São Paulo in Brazil, Enel Colombia S.A. ESP (new company that merged Codensa's operations) in Colombia and Enel Distribución Perú in Peru. These companies serve major cities in Latin America, delivering electric service to more than 26.5 million customers.

The following tables present some key indicators of the distribution segment by geographic area in accumulated and quarterly terms as of September 30, 2022, and 2021:

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

The following table presents energy sales revenue by business segment, client category and country, in accumulated and quarterly terms as of September 30, 2022, and 2021:

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

I.- ANALYSIS OF THE FINANCIAL STATEMENTS

1. Analysis of Income Statement

The result attributable to the controlling shareholders of Enel Américas for the period ended September 30, 2022, was a US$ 103 million loss which represents a 116.6% decrease compared to the positive US$ 622 million result registered in the same period of the previous year. This result is strongly influenced by the recognition of non-recurring losses associated with the sale processes of Enel Distribución Goiás and Enel Generación Fortaleza totaling US$ 786 million and US$ 198 million.

The income attributable to Enel Américas shareholders during the third quarter of 2022, reached a US$ 680 million loss, presenting a US$ 944 million decrease compared to the third quarter of 2021, equivalent to a 357.7% decrease affected by effects generated by the sales processes indicated above.

The following is comparative information for each item of the consolidated financial statements, in accumulated and quarterly terms as of September 30, 2022, and 2021:

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

EBITDA

EBITDA for the period ended September 30, 2022, reached US$ 3,425 million, representing a US$ 499 million increase equivalent to a 17.1%, growth compared to EBITDA of US$ 2,926 million from the same period of the previous year.

During the third quarter of 2022, EBITDA reached US$ 1,060 million, presenting a US$ 81 million decrease compared to the third quarter of 2021, equivalent to 7.1%.

The decrease in EBITDA in the third quarter is related to a lower performance of the operations in Argentina and Brazil, partially offset by the better results achieved by the operations of Colombia and Peru

Operating revenues, operating costs, staff costs and other expenses by nature for the operations that determine our EBITDA, broken down by each business segment, are presented below, on accumulated and quarterly terms as of September 30, 2022:

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

Continued

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

GENERATION AND TRANSMISSION SEGMENT EBITDA

Argentina

EBITDA of our generation segment in Argentina reached US$ 92 million as of September 2022, which represents a US$ 10 million decrease compared to the same period of the previous year. The main variables that explain this decrease in the items that make up EBITDA are explained below:

Operating revenues decreased by US$ 9 million as of September 30, 2022, compared to September 30, 2021. This situation is explained by: (i) US$ 78 million lower revenues due to the negative conversion effect as a result of the devaluation of the Argentine peso against the US dollar, and (ii) US$ 17 million lower revenues due to lower sales volume (-1,704 GWh) stemming from lower unit availability at Enel Generación Costanera and worse water conditions that affected Enel Generación El Chocón. This was partially offset by higher revenues of: (i) US$ 46 million due to the application of Resolution No. 238/2022, which increased prices by 30% retroactively as of February 2022, plus an additional 10% as of June and an improvement in power payment by eliminating the use factor, and (ii) US$ 35 million as a result of updating figures as a result of hyperinflation in Argentina.

Operating costs decreased by US$ 5 million as of September 30, 2022, mainly explained by: (i) US$ 2 million as a result of the negative conversion effect as a result of the devaluation of the Argentine peso against the US dollar, and (ii) US$ 3 million for lower fuel transportation costs in 2022 due to assigning contracts with Metrogas 07-21, service in charge of Cammesa.

Personnel expenses increased by US$ 6 million explained by salary increases and inflation increases totaling US$ 22 million, partially offset by a US$ 15 million decrease as a result of the devaluation of the Argentine peso against the US dollar.

Other expenses by nature increased by US$ 1 million as a result of higher costs for hiring third-party services and higher costs due to hyperinflation totaling US$ 15 million, partially offset by a US$ 14 million decrease as a result of the devaluation of the Argentine peso against the US dollar.

Regarding the third quarter of 2022, the generation segment in Argentina reached an EBITDA of US$ 30 million, US$ 8 million less than the amount in the same period of 2021. This decrease is explained by: (i) US$ 21 million lower EBITDA due to the conversion effect caused by the devaluation of the Argentine peso against the US dollar; (ii) US$ 8 million lower personnel costs due to salary adjustments as a result of hyperinflation in Argentina; (iii) US$ 5 million higher outsourced services as a result of higher value due to hyperinflation. All of the above partially offset by higher revenues of US$ 26 million composed of: (i) US$ 34 million higher revenues due to the application of Resolution No. 238/2022, which increased prices by 30% retroactively as of February 2022, plus an additional 10% as of June and inflation adjustments, and (ii) US$ 8 million lower revenues due to lower sales volume (-672 GWh) as a result of lower unit availability at Enel Generación Costanera and worst water conditions that affected Enel Generación El Chocón.

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

Brazil

EBITDA of our generation and transmission segment in Brazil reached US$ 534 million as of September 2022, which represents a US$ 143 million increase compared to the same period of the previous year. The main variables that explain this increase in the items that make up EBITDA are explained below:

Operating revenues decreased by US$ 736 million, equivalent to 42.3% as of September 30, 2022. The decrease is mainly explained by: (i) US$ 780 million lower energy sales due to energy imports from Argentina and Uruguay, given the improvement in water conditions in Brazil, and (ii) US$ 69 million due to lower physical sales (-820 GWh) in thermal energy at Enel Generación Fortaleza, due to lower own generation, which prevented generating the surplus energy that existed during the same period of 2021, and subsequent to that the sale of said subsidiary materialized during the month of August of this year. This is partially offset by: (i) US$ 37 million higher revenues from sales of electricity from renewable sources especially in EGP companies, caused by a higher volume of sales (+4,428 GWh), an effect that was partially offset by lower average sales prices; (ii) US$ 37 million of higher revenues as a result of the increase in the volume of electricity intermediation (+9,669 GWh), partially offset by lower sales prices, and (iii) US$ 37 million from positive conversion effects as a result of the appreciation experienced by the Brazilian real against the US dollar in the nine-month period ended September 30, 2022.

Operating costs decreased by US$ 910 million, or 70.7%, mainly due to: (i) US$ 798 million for lower energy purchases from Argentina and Uruguay given the improvement of water conditions in Brazil; (ii) US$ 257 million of lower energy purchase costs, due to lower volume to meet commitments in the case of Enel Generación Fortaleza, and lower purchase prices in the case of EGP companies. The foregoing partially offset by: (i) a US$ 14 million increase due to the conversion effect resulting from the appreciation experienced by the Brazilian real against the US dollar; (ii) US$ 10 million for higher fuel costs in Enel Generación Fortaleza, and (iii) US$ 9 million due to higher transportation costs, mainly in EGP companies, due to the increase in generation units.

Personnel expenses decreased by US$ 7 million, as a result of the restructuring that occurred after the merger between EGP Brasil and Enel Brasil, towards the end of 2021.

Other expenses by nature increased by US$ 39 million mainly because of: (i) US$ 32 million of increased outsourced services in EGP companies, and (ii) US$ 4 million due to the conversion effect resulting from the appreciation of the Brazilian real against the US dollar. 

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

In quarterly terms, EBITDA was US$ 9 million lower than in the third quarter of 2021, a decrease that is mainly explained by: (i) US$ 63 million due to lower physical sales (-401 GWh) in thermal energy in Enel Generación Fortaleza, motivated by lower own generation, which prevented generating the surplus energy that existed during the same period of 2021, and after that the sale of said subsidiary materialized during the month of August; (ii) US$ 75 million lower revenues from the sales of electricity from renewable sources, especially in EGP companies, caused by lower average sales prices, partially offset by a higher volume of physical sales (+1,098 GWh); (iii) US$ 101 million lower revenues due to lower prices in the sale of electricity, an effect that was partially offset by an increase in the volume of intermediation in the quarter ended September 30, 2022 (+2,297 GWh), and (iv) US$ 17 million higher expenses for outsourced services mainly in EGP Brasil. All of the above was partially offset by: (i) US$ 236 million of lower energy purchase costs in the case of Enel Generación Fortaleza, and lower purchase prices in the case of renewable generation companies; and (ii) US$ 5 million from the positive conversion effect as a result of the appreciation experienced by the Brazilian real against the US dollar.

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

Colombia

EBITDA of our generation segment in Colombia reached US$ 605 million as of September 30, 2022, which represents a US$ 21 million increase compared to the same period of the previous year. The main variables that explain this increase in the items that make up EBITDA are explained below:

Enel Colombia Generation's operating revenues (Ex Emgesa and EGP Colombia) increased by US$ 117 million, or 12.6% as of September 2022. This increase is mainly explained by: (i) a price effect of US$ 141 million due to higher average sale prices from higher IPP wholesale prices, and (ii) US$ 68 million due to higher physical sales volumes (+1,016 GWh). All of the above was partially offset by a US$ 104 million conversion effect related to the devaluation of the Colombian peso against the US dollar.

Operating costs increased by US$ 85 million and are mainly explained by: (i) a US$ 67 million increase related to energy purchases as a result of higher purchase price and higher purchase volume for project support, and (ii) US$ 59 million higher transportation costs and other supplies. All of the above was partially offset by a US$ 38 million conversion effect related to the devaluation of the Colombian peso against the US dollar.

Personnel expenses increased by US$ 5 million mainly because of: (i) US$ 8 million higher salary costs for integration of EGP Colombia personnel and adjustments for inflation and real increases, and (ii) US$ 3 million positive conversion effect related to the devaluation of the Colombian peso against the US dollar.

Other expenses by nature increased by US$ 6 million, mainly as a result of: (i) a US$ 3 million increases in other third-party services, higher insurance premiums and readjustments of Colombian CPI, and (ii) US$ 3 million for integration costs in the merger in Enel Colombia.

In the third quarter of 2022, the Generation segment in Colombia reached an EBITDA of US$ 206 million, decreasing by US$ 5 million compared to the third quarter of 2021. This decrease is mainly explained by: (i) US$ 59 million higher revenues attributable to higher average PPI wholesale prices, and (ii) US$ 9 million due to higher physical sales volumes (+246 GWh). All of the above partially offset by: (i) US$ 25 million higher cost in energy purchases composed of a higher average purchase price of US$ 30 million, and lower purchase volumes of US$ 5 million; (ii) US$ 21 million higher transportation costs and other supplies, and (iii) US$ 29 million conversion effect related to the devaluation of the Colombian peso against the US dollar.

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

Peru

EBITDA of our generation segment in Peru reached US$ 297 million as of September 2022, which represents a US$ 66 million increase compared to the same period of the previous year. The main variables that explain this increase in the items that make up EBITDA are explained below:

Operating revenues increased by US$ 106 million, or 25.4%, as of September 2022. This increase is explained by: (i) US$ 53 million increase in revenues due to higher average sale prices, mainly due to indexation of rates of free and regulated customers; (ii) US$ 44 million higher volumes regulated clients, partially offset by lower volumes to free customers due to contract expiration (+289 GWh), and (iii) US$ 3 million due to the conversion effects resulting from the appreciation experienced by the Peruvian sun against the US dollar.

Operating costs increased by US$ 38 million, mainly due to: (i) US$ 27 million from increased purchases of energy in the spot market, and (ii) US$ 10 million higher transportation and fuel costs, due to the increase in thermal generation, and (iii) US$ 1 million due to the conversion effect resulting from the appreciation experienced by the Peruvian sol against the US dollar.

Enel Generación Perú's personnel costs increased by US$ 2 million as a result of salary increases.

Other expenses by nature were in line with the same period ended September 30, 2021.

In the third quarter of 2022, the Generation segment in Peru reached an EBITDA of US$ 100 million, with a 37.7% growth compared to the US$ 73 million registered in the same period of 2021. The US$ 28 million increase in EBITDA is explained by: (i) US$ 16 million due to increased sales volume (+139 GWh); (ii) US$ 18 million increase of revenues from higher average sale prices, mainly due to indexation of rates of free and regulated customers, and (iii) US$ 4 million lower outsourced services. This is partially offset by US$ 10 million higher costs due to greater purchase of energy at a higher spot price.

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

Central America

EBITDA of our generation segment in Central America reached US$ 112 million as of September 2022, which represents a US$ 8 million increase compared to the same period of the previous year. The main variables that explain this increase in the items that make up EBITDA are explained below:

Operating revenues increased by US$ 69 million, mainly explained by higher energy sales volumes as a result of comparing 2,484 GWh equivalent to nine months of 2022 versus 1,578 GWh, in the six months corresponding to 2021.

Operating costs increased by US$ 53 million mainly explained by: (i) US$ 42 million higher costs due to greater purchases of energy in the spot market at higher prices, to meet sales commitments in PPA contracts as a result of the lower power generation of the Fortuna plant in Panama, due to lower water level in the reservoir (in the first months of 2022); (ii) US$ 4 million higher transportation costs in EGP Guatemala, and (iii) US$ 7 million higher costs for comparing 9 months of 2022 with 6 months of 2021.

Personnel expenses increased by US$ 3 million because of higher costs when comparing 9 months of 2022 with 6 months of 2021.

Other expenses by nature increased by US$ 5 million due to greater third-party services, repairs and maintenance associated with the greater number of months incorporated into the consolidation compared to 2021, and the entry into operation of new production units.

In the third quarter of 2022, EBITDA of the generation segment in Central America reached US$ 48 million, US$ 7 million less than the one registered in the third quarter of 2021, which is mainly explained by lower physical sales volumes (-26 GWh) and higher costs due to the entry into operation of new photovoltaic generation units in Panama.

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

EBITDA DISTRIBUTION SEGMENT

Argentina

EBITDA of our distribution segment in Argentina reached a negative amount of US$ 53 million as of September 2022, which represents a US$ 68 million decrease compared to the same period of the previous year. The main variables that explain this decrease in the items that make up the EBITDA are explained below:

Operating revenues increased by US$ 101 million, or 17.8%, as of September 2022, which is mainly explained by: (i) US$ 352 million from the readjustments of tariff tables approved by the regulatory authority in Argentina during the period ended September 30, 2022; and (ii) US$ 38 million for increased physical sales during the period ended September 30, 2022 (+ 545 GWh), and (iii) US$ 41 million other income. The above effects are partially offset by US$ 331 million due to the negative conversion effect as a result of the devaluation of the Argentine peso against the US dollar.

Operating costs increased by US$ 122 million mainly due to: (i) US$ 24 million due to increased volume of energy purchases (+481 GWh); (ii) US$ 321 million for higher price in the purchase of energy; (iii) US$ 4 million for connection and reconnection costs, and (iv) US$ 25 million increase for other supplies and variable services associated with the increase in sales volume, and the readjustments of inflation rates and penalties for quality in the provision of the service. The previous effects were partially offset by US$ 251 million of positive conversion effects as a result of the devaluation of the Argentine peso against the US dollar.

Personnel expenses increased by US$ 19 million, mainly due to a US$ 94 million increase due to salary increases, mainly explained by the recognition of inflation, an effect that was partially offset by: (i) a US$ 46 million decrease due to the positive conversion effects as a result of the devaluation of the Argentine peso against the US dollar; and (ii) US$ 34 million due to higher labor cost activations in capitalizable projects.

Other expenses by nature increased by US$ 28 million compared to the same period of the previous year, basically because of US$ 88 million for higher expenses for hiring outsourced services, repairs, maintenance of network operations and other variables, expenses that were partially offset by US$ 60 million due to the conversion effect as a result of the devaluation of the Argentine peso against the US dollar. 

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

Regarding the third quarter of 2022, EBITDA of our distribution segment in Argentina reached a negative amount of US$ 21 million, US$ 34 million lower than the EBITDA reached in the same period of the previous year. This lower EBITDA is mainly explained by: (i) US$ 128 million higher costs in energy purchases, US$ 20 million higher volume, and higher average purchase prices of US$ 100 million; (ii) US$ 36 million higher personnel expenses, mainly due to inflation adjustments, and (iii) US$ 26 million higher costs for outsourced services and other supplies affected by hyperinflation. All of the above partially offset by US$ 159 million higher sales revenues as a result of a higher volume of energy of US$ 25 million (+207 GWh), US$ 134 million better average sale prices due to tariff increases authorized by the Argentine regulation.

Brazil

EBITDA of our distribution segment in Brazil reached US$ 1,194 million as of September 2022, which represents a US$ 203 million increase compared to the same period of the previous year. The main variables that explain this decrease in the items that make up the EBITDA are explained below:

Operating revenues in the distribution segment in Brazil decreased by US$ 31 million, or 0.5% as of September 2022, and is mainly explained by: (i) US$ 468 million due to lower average sales prices, due to tariff adjustments associated with regulatory assets, as a result of better water conditions recorded during 2022 added to a lower volume of physical sales (-371 GWh), effects that were partially offset by the tariff adjustments approved in Brazilian distributors; (ii) a US$ 228 million increase in other operating income explained mainly by higher construction revenues, due to the application of IFRIC 12 "Service Concession Agreements" (hereinafter "IFRIC 12"); (iii) US$ 49 million lower income from updating financial assets associated with IFRIC 12 due to deflation in recent months in Brazil; (iv) US$ 24 million for increased revenue from fines to customers for late payments, and (v) US$ 238 million of conversion effects originated in the appreciation of the Brazilian real against the US dollar. 

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

Operating costs decreased by US$ 246 million, or 5.1%, as of September 2022, and are mainly explained by US$ 700 million due to lower energy purchase costs, given the reduction in spot prices as a result of the improvement in water conditions in Brazil. This was partially offset by: (i) US$ 171 million due to the conversion effects from the appreciation of the Brazilian real against the US dollar; (ii) US$ 228 million higher other variable supplies and services due to higher construction costs as per the IFRIC 12 application; and (iii) US$ 57 million due to higher variable costs associated with cuts and reconnections and electricity transmission services.

Personnel expenses decreased by US$ 19 million, mainly explained by higher costs recorded in 2021 and linked to the restructuring plan associated with the digitalization strategy promoted by the Group.

Other expenses by nature increased by US$ 31 million, mainly due to US$ 56 million of increased services hired from third parties to respond to emergency situations due to weather events, partially offset by US$ 22 million from the capitalization of materials and services for projects under development.

With regard to the third quarter of 2022, EBITDA of our distribution segment in Brazil reached US$ 342 million, US$ 67 million less than the figure reached in the third quarter of 2021. This decrease is mainly due to: (i) US$ 498 million due to lower average sales prices, due to tariff adjustments associated with regulatory assets, as a result of better water conditions recorded during 2022 added to a lower sales volume (-311 GWh), all partially offset by the tariff adjustments approved in Brazilian distributors; (ii) US$ 120 million lower revenues from updating financial assets associated with IFRIC 12; (iii) US$ 613 million for lower costs in energy purchase given the reduction of spot prices in energy purchases, as a result of the improvement of water conditions in Brazil, and (iv) US$ 65 million higher electricity transportation costs.

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

Colombia

EBITDA of our distribution segment in Colombia reached US$ 505 million as of September 2022, which represents an increase of US$ 92 million compared to the same period of the previous year. The main variables that explain this decrease in the items that make up the EBITDA are explained below:

Operating revenues in the distribution segment in Colombia increased by US$ 108 million, or 8.6%, as of September 2022, and is mainly explained by: (i) US$ 111 million increased revenues due to improved average sale prices (explained by the applicable indexes of adjustability); (ii) US$ 29 million for increased physical volume of energy sales (+439 GWh); (iii) US$ 18 million higher revenues due to higher income from recognition of investments, which are remunerated at a higher rate due to a greater regulatory base of the assets; (iv) US$ 11 million increased revenues, for the operation of four e-bus yards as of March 2022; (v) US$ 9 million increased revenues from public lighting in Bogotá, due to updating remuneration parameters and public lighting in municipalities of Cundinamarca, and (vi) US$ 10 million for increased income from other revenues. This was partially offset by US$ 80 million, due to the conversion effect resulting from the devaluation of the Colombian peso against the US dollar.

Operating costs increased by US$ 32 million, or 4.3%, as of September 2022 and are mainly explained by: (i) US$ 16 million higher energy purchase costs due to higher average sales prices and higher purchase volume, and (ii) US$ 66 million increased energy transportation expenses, and (iii) a US$ 27 million increase in other supplies and services. All of the above was partially offset by US$ 77 million, due to the negative conversion effect figures resulting from the devaluation of the Colombian peso against the US dollar.

Personnel expenses decreased by US$ 4 million mainly because of: (i) the devaluation of the Colombian peso against the U.S. dollar, and (ii) capitalization of labor associated with the construction of projects.

Other expenses by nature decreased by US$ 12 million, mainly due to (i) US$ 6 million lower services hired from third parties, and (ii) US$ 6 million the devaluation of the Colombian peso against the US dollar.

Regarding the third quarter of 2022, EBITDA of our distribution segment in Colombia reached US$ 145 million increasing by US$ 15 million the figure reached in the third quarter of 2021. This increase is mainly explained by: (i) US$ 33 million due to higher energy sales resulting from an increase in average sales prices and a higher volume of energy sold (+69 GWh); (ii) US$ 6 million increased toll revenues, and (iii) US$ 13 million lower energy transportation costs. All of this was partially offset by: (i) US$ 11 million higher energy purchase costs due to higher average sales prices and lower purchase volume, and (ii) US$ 24 million due to the negative conversion effect resulting from the devaluation of the Colombian peso against the US dollar.

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

Peru

EBITDA of our distribution segment in Peru reached US$ 200 million as of September 2022, which represents a US$ 29 million increase compared to the same period of the previous year. The main variables that explain this decrease in the items that make up the EBITDA are explained below:

Operating revenues of the distribution segment in Peru increased by US$ 90 million, mainly explained by: (i) US$ 53 million due to higher energy sales because of an 8.2% increase in average sales prices; (ii) US$ 25 million due to higher physical energy sales (+ 134 GWh); (iii) US$ 10 million mainly due to higher revenues associated with tolls due to the increase of free customers, and (iv) US$ 4 million as a result of the conversion effect stemming from the appreciation of the Peruvian sol against the US dollar.

Operating costs increased by US$ 63 million mainly due to: (i) US$ 40 million higher average prices in the purchase of energy, (ii) US$ 17 million increased volumes of physical purchase of energy, and (iii) US$ 2 million due to the negative conversion effect resulting from the appreciation of the Peruvian sol against the US dollar.

Personnel expenses decreased by US$ 3 million as a result of higher labor capitalizations due to projects under development.

Other expenses by nature increased by US$ 1 million, mainly due to the conversion effects as a result of the appreciation of the Peruvian sol against the US dollar.

With regard to the third quarter of 2022, EBITDA of our distribution segment in Peru reached US$ 67 million, increasing by US$ 14 million the figure reached in the third quarter of 2021. This increase is mainly explained by: (i) US$ 20 million due to higher energy sales because of a 7.3% increase in average sales prices; (ii) US$ 7 million due to higher physical energy sales (+ 45 GWh); (iii) US$ 4 million mainly due to higher revenues from tolls and other services; (iv) US$ 3 million for increased labor capitalization for projects under development, and (v) US$ 3 million for lower maintenance costs. All of the above was partially offset by US$ 24 million due to higher costs caused by a higher purchase volume at higher spot prices.

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

Depreciation, Amortization, and Impairment

Below we present a summary by segment and country of EBITDA, Depreciation, Amortization and Impairment Expenses, and EBIT for Enel Américas Group subsidiaries for the periods ended September 30, 2022, and 2021:

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

Depreciation, amortization, and impairment reached US$ 1,967 million as of September 2022, increasing by US$ 960 million compared to the same period in 2021.

Depreciation and amortization reached US$ 828 million as of September 2022, representing a US$ 115 million increase compared to September 2021. This is mainly explained by the following increases: (i) US$ 52 million from EGP Americas companies incorporated into the consolidation perimeter of Enel Américas on April 1, 2021, so this year compares nine months versus the six months incorporated in 2021; (ii) Enel Distribución Río with US$ 14 million, composed of US$ 12 million due to higher depreciations because of higher activations, and US$ 2 million increase due to the appreciation of the Brazilian real against the US dollar; (iii) Enel Distribución Sao Paulo with US$ 19 million, composed of US$ 14 million due to higher depreciations due to higher activations, and US$ 5 million increase due to the appreciation of the Brazilian real against the US dollar; (iv) Enel Distribución Goiás with US$ 8 million, composed of US$ 5 million due to higher depreciations stemming from higher activations, and a US$ 3 million increase due to appreciation of the Brazilian real against the US dollar; (v) Enel Distribución Ceará with US$ 5 million, composed of US$ 3 million due to higher depreciations stemming from higher activations, and US$ 2 million increase due to appreciation of the Brazilian real against the US dollar; (vi) Edesur with US$ 14 million, composed of US$ 49 million due to higher depreciations stemming from higher activations, and a US$ 35 million decrease due to the devaluation of the Argentine peso against the US dollar.

At the same time, impairment losses reached US$ 1,193 million as of September 30, 2022, with a total increase of US$ 891 million, composed as follows:

Impairment losses due to the application of IFRS 9 on financial assets account for US$ 256 million of the closing balance as of September 30, 2022, a US$ 8 million increase compared to the same period of the previous year. This is mainly explained by increases in distribution companies, mainly in Argentina and Colombia totaling US$ 30 million, partially offset by reverse provisions for impairments in net terms in Brazilian distribution companies, mainly Enel Distribución Rio and Enel Distribución Ceará. The impairment associated with the Colombian Companies includes impairments on the assets of the USME and Fontibón Companies totaling US$ 13 million, an adjustment that was necessary to reduce the book value of the financial assets to their sale value.^[1]

The remaining $883 million correspond to impairment losses related long-lived assets. This amount includes: (i) the recognition of an impairment loss related to that of goodwill on Enel Generación el Chocón totaling US$ 18 million; (ii) a US$ 77 million impairment loss related to the assets of Enel Generación Fortaleza, a company that, in the context of the Company's energy transition plan, was sold during the month of August of this year, and (iii) a US$ 786 million impairment loss related to the assets of Enel Distribución Goiás. From the economic conditions established in the sale agreements of Enel Generación Fortaleza and Enel Distribución Goiás, the need arose to reduce the book value of their long-lived assets to recoverable value ^[2], at the time that these companies met the requirements to classify as assets available for sale.

¹For more information, see Note No. 6.2 of the Consolidated Financial Statements of Enel Américas as of September 30, 2022.

²For more information see Notes No. 6.1 and 33 of the Consolidated Financial Statements of Enel Américas as of September 30, 2022.

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

The following table presents the consolidated non-operating results for years ended September 30, 2022, and 2021:

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

Financial results

The financial result totaled US$ 492 million loss as of September 2022, which represents a US$ 98 million increase compared to the loss for the same period of the previous year. This variation is explained as follows:

(a) Higher financial income of US$ 186 million, mainly explained by (i) US$ 114 million attributable to an increased update of sector assets and liabilities in Brazilian Distribution Companies, highlighting Enel Distribución Sao Paulo with US$ 49 million; Enel Distribución Ceará with US$ 28 million and Enel Distribución Goiás with US$ 34 million, and (ii) US$ 69 million higher interest earned from maintaining cash and cash equivalents mainly in Brazil, Colombia and Argentina.

During the third quarter of 2022, financial income increased by US$ 37 million compared to the same period of 2021, mainly due to: (i) US$ 25 million update of regulatory assets and liabilities in Distribution companies in Brazil; and (ii) US$ 12 million for higher interest earned from maintaining cash and cash equivalents and other updates, mainly in Brazilian distribution companies.

(b) Higher financial expenses totaling US$ 474 million explained mainly by: (i) US$ 106 million financial update for debt with energy purchase supplier (CAMMESA) in Edesur; (ii) US$ 24 million increased financial expenditure on bank loans; (iii) US$ 74 million increased financial expenditure for public obligations; (iv) US$ 201 million due to higher financial costs for valuation of derivative operations taken on by distribution companies in Brazil; (v) US$ 58 million higher financial costs due to increased loans granted by EFI mainly to Brazilian Companies, and (vi) US$ 11 million updating of other financial obligations net of capitalized interest.

In the third quarter ended on September 30, 2022, there was a US$ 139 million increase mainly explained by: (i) US$ 49 million financial update for debt with CAMMESA; (ii) US$ 27 million increased financial expenditure for public obligations; (iii) US$ 78 million due to higher financial costs for valuation of derivative operations in distribution companies in Brazil. All of the above was partially offset by US$ 15 million lower bank expenses in the quarter.

(c)   The income from readjustments increased by US$ 167 million and correspond to the financial result generated by the application of IAS 29 Financial Reporting in Hyperinflationary Economies in Argentina. They reflect the net balance arising from applying inflation to non-cash assets and liabilities and undisclosed income statements converted to U.S. dollars at closing exchange rates.

In the third quarter of 2022, the effect of hyperinflation in Argentina led to a US$ 64 million increase in the income statement by readjustment units.

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

(d) US$ 24 million higher results due to exchange differences compared to the previous year, mainly due to: (i) US$ 51 million increased profits due to exchange differences corresponding to debts of Brazilian companies with related companies outside the consolidation perimeter of Enel Américas, due to appreciation of the closing Brazilian real against the US dollar, and (ii) US$ 33 million of profits from updating VOSA credit in the Argentine companies Enel Generación El Chocón and Enel Generación Docksud as a result of the devaluation of the Argentine peso against the US dollar. All of the above was partially offset by: (i) a US$ 21 million losses due to updating of debts in Colombia with related companies outside the consolidation perimeter of Enel Américas and dividends to be received from Central American subsidiaries, as a result of the devaluation of the Colombian peso against the US dollar, and (ii) a US$ 40 million losses from exchange differences registered by Enel Américas as a holding company, for dividends declared in Colombia and not yet received.

In quarterly terms, exchange differences recorded a higher profit of US$ 46 million, mainly due to profits in the updating of accounts payable of subsidiaries in Brazil with related companies outside the consolidation perimeter of Enel Américas, in a stability scenario in the Brazilian real during the third quarter of 2022 compared to a devaluation period in the third quarter of 2021.

Other profit (loss) recorded in cumulative terms a higher loss totaling US$ 126 million as of September 30, 2022, and US$ 129 million in the third quarter ended on the same date. In both cases, the figure is explained by the recognition of US$ 131 million originated by the loss in the loss in the sale of Enel Generación Fortaleza.

Corporate income tax reached US$ 612 million as of September 30, 2022, which represents a US$ 48 million decrease in expenses compared to the same period of the previous year. This decrease is mainly explained by: (i) US$ 123 million lower taxes in the first months of 2022, given that during the same period of the previous year higher expenses in income taxes and deferred taxes in subsidiaries in Argentina were recognized, due to the adaptation to the tax reform approved by the Argentine Government, where the nominal rate was increased from 30% to 35%, detailed as follows: Edesur with US$ 101 million, Enel Generación Costanera with US$ 11 million, Central Dock Sud with US$ 4 million, offset by Enel Generación El Chocón with US$ 7 million; and (ii) US$ 10 million lower taxes in Brazil for losses recognized in the sale of Enel Generación Fortaleza. This was partially offset by: (i) US$ 62 million higher income taxes in Enel Colombia, composed of a better operating result, which was additionally taxed at a rate of 35% in the nine-month period ended September 30, 2022, with respect to at the rate of 31% that affected the results in the same period of the previous year, and (ii) US$ 17 million higher taxes for the incorporation of EGP companies for nine months in 2022 and only 6 months in 2021.

In the third quarter of 2022, income taxes were in line with those recorded in the same period of 2021, reaching US$ 212 million. 

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

ANALYSIS OF THE FINANCIAL STATEMENT

Enel Américas' total assets as of September 30, 2022, increased by US$ 1,035 million compared to total assets as of December 31, 2021, mainly as a result of:

Current Assets increased by US$ 2,307 million, equivalent to 32.7%, mainly explained by:

· A US$ 102 million increase in cash and cash equivalents composed mainly of: (1) Net income from operating flows totaling US$ 2,544 million, corresponding to charges for sales and provision of services, net of payment to suppliers and others; (2) US$ 195 million net outflows from financing activity flows corresponding to: (i) US$ 2,008 million financing for bank loans, and (ii) US$ 681 million loans from related companies. This was partially offset by: (i) US$ 1,453 million loan payments and obligations to the public; (ii) US$ 531 million dividend payments; (iii) US$ 379 million interest payments; (iv) US$ 47 million payments of financial lease liabilities; (v) US$ 359 million payment of loans to related companies, and (vi) US$ 115 million other cash outflows; (3) US$ 2,200 million net outflows from investment activities corresponding to: (i) US$ 1,266 million disbursements for the incorporation of property, plants and equipment, (ii) US$ 976 million payments for the incorporation of intangible assets; (iii) US$ 794 million investment payments of over 90 days, and (iv) US$ 33 million other net investments. These investment cash flow outflows were offset by: (i) US$ 51 million received interest, (ii) US$ 45 million collection of loans from related companies, and (iii) US$ 773 million redemption of investments of over 90 days, and (4) a US$ 26 million decrease due to the effect of the change in exchange rates on cash and cash equivalents, net of US$ 21 million segregated into available-for-sale assets.

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

A US$ 1,271 million decrease in Non-Current Assets equivalent to 4.6% mainly due to:

³ For more information, see Note No. 6 of the Consolidated Financial Statements of Enel Américas as of September 30, 2022.

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

Enel Américas' total liabilities and equity as of September 30, 2022, increased by US$ 1,035 million compared to December 2021, mainly as a result of:

Current Liabilities increased by US$ 1,839 million, equivalent to 23.6% mainly explained by:

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

Non-current liabilities decreased by US$ 795 million, equivalent to 6.6% mainly explained by:

Total equity decreased by US$ 9 million, explained by:

Equity attributable to the owners of the holding company decreased by US$ 357 million mainly due to a decrease of: (i) US$ 230 million other reserves mainly for (a) US$ 177 million negative conversion differences; (b) US$ 81 million negative cash flow hedging reserves; and (c) US$ 28 million positive reserves due to the positive effect of US$ 534 million due to the application of IAS 29 "hyperinflationary economies" in Argentina, partially offset by the negative effect of the merger of the Colombia and Central America businesses in Enel Colombia totaling US$ 506 million, offset by (ii) a US$ 103 million decrease for the loss of the period, and (iii) US$ 24 million for a decrease in actuarial earnings.

⁴ For more information, see Note No.6 of the Consolidated Financial Statements of Enel Américas as of September 30, 2022.

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

Non-controlling interests increased by US$ 349 million and are mainly explained by: (i) a US$ 333 million increase in profit for the period, and (ii) a US$ 679 million increase in other miscellaneous reserves, mainly explained by other reserves totaling US$ 1,179 million due to the application of IAS 29 "hyperinflationary economies" in Argentina, partially offset by the merger effect of Enel Colombia totaling US$ 506 million. The foregoing partially offset by: (i) US$ 471 million payment of dividends, and (ii) US$ 192 million decrease in comprehensive income primarily due to conversion differences.

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

Development of the main financial indicators is as follows:

- Current liquidity as of September 30, 2022, reached 0.97 times, 7.3% higher than the indicator as of December 31, 2021. This variation is mainly due to the reclassification of Enel Distribución Goiás' assets and liabilities to assets and liabilities available for sale, respectively.

- The acid ratio as of September 30, 2022, reached 0.91 times, 9.2% higher than the indicator as of December 31, 2021, due to the reclassification of Enel Distribución Goiás' assets and liabilities as explained above.

-Working capital as of September 30, 2022, corresponds to a negative value of US$ 266 million, which represents a US$ 467 million increase in working capital compared to December 2021. This variation is mainly explained by the reclassification of Enel Distribución Goiás' assets and liabilities.

-The Company’s Leverage (debt ratio) stands at 1.40 times as of September 30, 2022, which represents a 5.3% increase compared to December 31, 2021, explained by a higher level of financial obligations compared to December 31, 2021.

-The Hedging of financial costs for the period ended on September 30, 2022, was 3.87 times, representing a 15.7% decrease compared to the same period of the previous year, due to an increase in financial costs, due to higher interest rates in the current period compared to those in force in the previous year.

-The return on equity (profitability) ratio measured in terms of operating income over operating revenue reached 12.5% as of September 30, 2022, decreasing 3.1 p.p compared to the 15.6% registered as of September 30, 2021. The decrease is mainly due to the losses recognized in the sales processes of the subsidiaries Enel Generación Fortaleza and Enel Distribución Goiás for a total amount of US$ 863 million.

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

Excluding the extraordinary effects recognized in the 2022 period, the profitability ratio would have increased by 4.4 p.p. reaching 20.0%.

-The return on equity of the controllers’ property owners (shareholders) reached 0.1%, which compares negatively with the 9.0% registered in the same period of the previous year. This profitability is affected by the recognition of extraordinary losses associated with the sale of Enel Distribución Goiás and Enel Generación Fortaleza, for US$ 786 million and US$ 198 million, respectively.

Excluding these effects of the extraordinary losses indicated above within the period ended September 30, 2022, the return on equity would have amounted to 7.9%, slightly lower than that registered in the same period ended September 30, 2021, basically for the increase in equity originated in the Company after the merger with EGP Américas as of April 1, 2021.

- The return on assets was 1.3% as of September 30, 2022, down from 6.2% in the same period of 2021. This drop is related to the extraordinary losses explained above.

Excluding the effects of the extraordinary losses indicated above within the period ended September 30, 2022, the return on total assets would have amounted to 4.0%.

PRESS RELEASE ENEL AMÉRICAS GROUP’S CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2022

MAIN CASH FLOWS

Net cash flow for the period was positive as of September 30, 2022, at US$ 148 million, representing a US$ 63 million increase over the same period last year.

The main variables by operating activity flows, investment and financing, which explain this decrease in net cash flows, compared to September 2021, are described below:

Net cash flows from operating activities reached US$ 2,544 million as of September 2022, representing a 82.0% increase compared to September of the previous year. The variation is explained by a US$ 1,146 million net increase in operating activities mainly in: (i) US$ 1,243 million higher collections from sales and provision of services; (ii) US$ 42 million other charges for operating activities, and (iii) US$ 351 million lower payments to suppliers for the supply of goods and services. All of the above partially offset by: (i) US$123 million increased payments to and on behalf of employees, and (ii) US$ 368 million higher payments for other activities of the operation.

Cash flows from (used in) investment activities generated a higher net outflow of US$ 1,274 million as of September 2022, which is mainly explained by: (i) US$ 114 million higher disbursements for the incorporation of property, plants and equipment; (ii) US$ 163 million increased intangible asset additions; (iii) US$ 1,012 million lower cash receipts corresponding to the cash received from the merger with EGP Américas during 2021. This was partially offset by the receipt of US$ 15 million for other investment activities.

Cash flows from (used in) financing activities generated higher cash inflows of US$ 191 million as of September 2022, mainly caused by: (i) US$ 810 million lower loan repayments and obligations to the public; (ii) US$ 233 million lower dividend payments as a result of the policy change adopted by the group during 2022. The above partially compensated by: (i) US$ 202 million higher interest payments; (ii) US$ 465 million lower financing receipts composed of US$ 257 million with financial institutions and US$ 208 million with related companies, and (iii) other cash outflows of US$ 185 million.