Engie Energia Chile S A : Press Release EECL 1Q24 English

May 2, 2024

ENGIE ENERGÍA CHILE REPORTED EBITDA OF US$138 MILLION AND A NET PROFIT OF US$46 MILLION IN THE FIRST QUARTER OF 2024.

EBITDA REACHED US$138.3 MILLION IN THE FIRST QUARTER OF 2024, REPRESENTING A 36% INCREASE COMPARED TO THE FIRST QUARTER OF 2023. THIS QUARTER HAS BEEN MARKED BY LOW MARGINAL COSTS, ACCOMPANIED BY REDUCED GENERATION COSTS DUE TO LOWER GLOBAL FUEL PRICES, RESULTING IN AN IMPROVED OPERATIONAL RESULT.

• Operational revenues amounted to US$442.7 million in the first quarter of 2024, decreasing by 25% compared to the same period in the previous year. This decline was due to lower average monomic prices for both regulated and non-regulated customers.

• EBITDA for the first quarter of 2024 amounted to US$138.3 million, representing a 36% increase compared to the first quarter of the previous year. This growth was primarily driven by the recovery in the electricity margin.
• In the first quarter, net income was US$46.1 million, compared to US$19.7 million in the same period of the previous year. This improvement can be attributed to better operational performance.

Financial Highlights (in US$ millions)
	1Q23	1Q24	Var %
Total operating revenues	587.8	442.7	-25%
Operating income	57.3	103.3	n.a
EBITDA	102.0	138.3	36%
EBITDA margin	17.3%	31.2%	80%
Total non-operating results	(30.3)	(39.9)	n.a
Net income after tax	19.7	46.1	134%
Net income attributed to controlling shareholders	19.7	46.1	134%
Earnings per share (US$/share)	0.019	43.725
Total energy sales (GWh)	2,938	3,142	7%
Total net generation (GWh)	1,555	1,240	-20%
Energy purchases on the spot market (GWh)	552	935	69%
Energy purchases - back up (GWh)	800	986	23%

ENGIE ENERGÍA CHILE S.A. ("ECL") is engaged in the generation, transmission and supply of electricity and the transportation of natural gas in Chile. ECL is the fourth largest electricity generation company in Chile and one of the largest electricity generation companies in the northern segment of the SEN national grid (formerly known as SING). As of March 31, 2024, ECL accounted for 7% of the SEN's installed capacity. ECL primarily supplies electricity to large mining and industrial customers, and it also supplies electricity to distribution companies throughout Chile. ECL is currently 59.99% indirectly owned by the French company, ENGIE LATAM. The remaining 40.01% of ECL's shares are publicly traded on the Santiago stock exchange. For more information, please refer to www.engie-energia.cl.

Contents
HIGHLIGHTS:	3
RECENT EVENTS	3
FIRST QUARTER 2024	3
INDUSTRY OVERVIEW	3
Marginal Costs	4
Fuel prices	5
Generation	5
Management's Discussion and Analysis of Financial Results	7
First quarter 2024 compared to first quarter 2023 and fourth quarter 2023	7
Operating Revenues	7
Operating Costs	8
Electricity Margin	9
Operating Results	10
Financial Results	10
Liquidity and Capital Resources	11
Cash Flow from Operating Activities	12
Cash Flow Used in Investing Activities	12
Cash Flow from Financing Activities	13
Contractual Obligations	13
Dividend Policy	15
Risk management policy	16
Hedging Policy	17
Business Risk and Commodity Hedging	17
Foreign Currency Hedging	18
Interest Rate Hedging	19
Credit Risk	20
OWNERSHIP STRUCTURE AS OF MARCH 31, 2024	22
Number of shareholders: 1,750	22
APPENDIX 1	23
PHYSICAL DATA AND SUMMARIZED QUARTERLY FINANCIAL STATEMENTS	23
Physical Sales	23
Quarterly Income Statement	24
Quarterly Balance Sheet	25
Main Balance Sheet Variations	25
APPENDIX 2	27
Financial information	27
Financial Ratios	27
CONFERENCE CALL 1Q24	29

2

HIGHLIGHTS:

RECENT EVENTS

• Annual Ordinary Shareholders' Meeting: On Tuesday, April 30, 2024, the Company's shareholders agreed on the following:
• 1. Dividend Policy: No final dividends will be distributed on account of 2023's net results given the reported losses in the period.
  2. Auditors: To appoint EY Servicios Profesionales de Auditoría y Asesorías SpA as the Company's external auditing firm.
• Financing: On April 17th, EECL completed a bond issuance in the international markets for a total amount of USD 500.000.000. This issuance was carried out in accordance with the rules 144-A and Regulation S (Reg S) of the United States Securities Act of 1933. The bonds have a 10-year maturity and a 6.375% p.a. coupon interest rate. Interest payments will be made semi-annually, starting on October 17th, 2024 and the principal will be amortized in one single final payment ("bullet") on April 17th, 2034. The obligations arising from these bonds are not secured by any guarantees. Additionally, in compliance with applicable regulations, the bonds will not be registered with the Securities and Exchange Commission of the United States or with the CMF (Chilean Market Commission), and therefore, they will not be subject to public offering in either the United States or the Republic of Chile. This is ENGIE Chile´s first green bond issuance in the international markets, to finance renewable energy and storage projects.
• In April, Engie Energía Chile announced its fifth storage project called "BESS Tocopilla". This project will have an installed capacity of 116 MW/660 MWh. The initiative will be located where former coal and fuel oil units operated, giving new life to the site, while contributing to the flexibility and security of supply of both the National Electric System (SEN) and ENGIE's portfolio.

FIRST QUARTER 2024

• BESS Coya received authorization from the National Electric Coordinator to begin operations during the first quarter. This battery storage system has a 139 MW/638 MWh installed capacity and allows for the storage of energy generated by the Coya Solar Plant, located in María Elena, Antofagasta region. It is currently the largest energy storage battery park in Latin America. BESS Coya consists of 232 containers, evenly distributed across the 58 inverters of the solar plant. It can supply energy for up to 5 hours, equivalent to an average annual delivery of 200 GWh. Additionally, it plays a crucial role in the environment by providing green energy to approximately 100,000 households, avoiding the emission of 65,642 tons of CO2, annually.
• In January 2024, the Company monetized payment documents issued by the Treasury of the Republic under the second law of price stabilization for regulated customers (MPC law or "PEC-2"), following mechanisms agreed upon with the Inter-American Development Bank, for a value of USD 9.6 million.

INDUSTRY OVERVIEW

The SING and SIC power grids operated independently until November 24, 2017, when the interconnection of both grids was perfected through EECL's 50%-owned TEN project, giving birth to the SEN ("Sistema Eléctrico Nacional"). Currently, the company's generation assets are predominantly located in the northern segment of the SEN, in the area that used to be covered by the so-called SING Grid ("Sistema Interconectado del Norte Grande"), which serves a major portion of the country's mining industry. Given local conditions, the northern segment of the

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SEN is predominantly a thermoelectric system, with generation based on coal and LNG, with growing penetration of renewable sources, including wind, solar, geothermal, and storage systems, which allow to cope with the renewable energy generation intermittence, decoupling and curtailment. In 2018, EECL began its geographical diversification with the acquisition of renewable generation assets in other regions of the country and with the start of supply under PPAs awarded with distribution companies in the center-south region. The interconnection of the grids and the entry into operations of the Cardones-Polpaico Interconnection Project of InterChile, on May 30, 2019, allowed for the coupling of transmission bars in the different substations of the system, reducing the curtailment of renewable energy supply due to the insufficiency of the transmission infrastructure. However, the accelerated installation of renewable energy projects in recent years has exceeded the capacity of the transmission infrastructure, making it necessary to expand it to prevent renewable energy losses.

Marginal Costs

2023 Mes Ene Feb Mar Abr May Jun Jul Ago Sep Oct Nov Dec YTD

	Real (Monthly Average per Node)			2024
Crucero 22	Polpaico 220	Charrúa 220 Pto. Montt 22Temuco 220 Mes
96	94	91	197	89	Ene
114	114	110	215	107	Feb
106	133	132	207	128	Mar
109	133	132	160	130	Abr
106	123	123	138	118	May
93	104	102	90	88	Jun
60	59	56	48	47	Jul
54	52	48	36	36	Ago
53	50	46	32	33	Sep
44	41	33	35	27	Oct
41	33	25	20	20	Nov
47	41	34	49	28	Dec
77	81	78	102	71	YTD

	Real (Monthly Average per Node)
Crucero	PAN DE AZ Polpaico		Charrua	P. Montt
42	40	41	37	79
54	51	53	50	108
51	49	49	47	60

49

47

48

45

83

Source: Coordinador Eléctrico Nacional

In the first quarter of 2024, the average marginal cost of the system was 54 USD/MWh. In the northern zone, it was 49 USD/MWh, 47 USD/MWh in the center, and 84 USD/MWh in the southern region.

Overall, the rainfall during the winter of 2023 led to a significant increase in reservoir levels and accumulated snow volume. This is reflected in the November 2023 thaw forecast issued by the National Electric Coordinator (CEN). Additionally, fuel prices showed a downward trend in the last months of 2023. Coupled with the increased generation capacity from new power plants, this has resulted in a decrease in marginal costs since mid- 2023.

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Fuel prices

International Fuel Prices Index

		WTI
		(US$/Barrel)
	2023	2024 % Variation
			YoY
Jan	78.1	74.1	-5%
Feb	77.3	77.8	1%
March	72.5	81.3	12%
April	79.6
May	71.7
June	70.4
July	75.8
August	81.6
September	89.6
October	86.0
November	77.9
December	71.8
Source: Bloomberg, IEA

	Brent
	(US$/Barrel)
2023	2024 % Variation
		YoY
82.2	80.2	-2%
83.2	83.8	1%
77.5	85.4	10%
83.9
79.7
79.5
79.9
86.3
93.9
90.8
83.2
77.6

	Henry Hub
	(US$/MMBtu)
2023	2024 % Variation
		YoY
3.18	3.17	0%
2.39	1.67	-30%
2.26	1.49	-34%
2.16
2.15
2.12
2.55
2.61
2.63
2.95
2.75
2.52

European coal (API 2)
	(US$/Ton)
2023	2024 % Variation
		YoY
167.5	106.1	-37%
138.3	95.8	-31%
138.3	114.4	-17%
140.3
119.0
115.6
110.5
117.7
123.3
136.1
123.6
117.6

As shown in the table above, when comparing 2024 to 2023, we can see a continued downward trend in international fuel prices.

Generation

The following graphs provide a breakdown of generation in the SEN by fuel type and by company for the first quarter of 2023 and 2024:

3M23: Generation by source	3M24: Generation by source
	other	coal		other	coal
	4%		4%
	17%		16%
Gas		Gas
24%			16%
			21.671 GWh
		renewables			renewable
		hydro		36%
hydro		35%
	28%
20%

Source: Coordinador Eléctrico Nacional

During the first quarter of 2024, demand reached a maximum of 12,190.5 MWh/h on January 31st, a 5.6% over peak demand of 2023. Accumulated sales as of March 2024, reached 20,138 GWh, with a 3.5% increase in unregulated customer sales and a 2.7% increase in the regulated client segment as compared to the same period in 2023.

Regarding renewable energy, solar generation increased by 14%, while wind generation rose by 7% as compared to 2023. As of March 2024, the National Electricity System (SEN) reported total gross installed capacity

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of 35,338 MW, including 16,533.2 MW qualifying as non-conventional renewable energy capacity, as defined by Law #20,257.

In terms of hydraulic generation for the SEN, as of March, the estimated probability of exceedance for the April 2023-March 2024 hydrological year was 59.4% (medium-dry year).

Electricity production in the SEN grid, broken down by company, was as follows:

3M23: Generation by company	3M24: Generation by company
ENGIE		ENGIE
6%
	6%
Colbún
Colbún
16%
15%
Other		Other
43%
	44%
AES	AES	21.671 GWh
11%	8%
Enel		Enel
24%
	27%

Source: Coordinador Eléctrico Nacional

6

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL RESULTS

The following discussion is based on our unaudited consolidated financial statements for the three-month periods ended March 31, 2024, and March 31, 2023. These financial statements have been prepared in U.S. dollars in accordance with IFRS and should be read in conjunction with the financial statements and the notes thereto published by the Comisión para el Mercado Financiero (www.cmfchile.cl).

First quarter 2024 compared to first quarter 2023 and fourth quarter 2023

Operating Revenues

	Quarterly Information (In US$ millions)
	1Q23	4Q23	1Q24	% Variation
Operating Revenues	Amount	% of total	Amount	% of total	Amount	% of total	QoQ	YoY
Unregulated customers sales…………………..	228.6	43%	209.2	48%	194.4	48%	-7%	-15%
Regulated customers sales…………………….	249.6	47%	171.5	40%	190.6	47%	11%	-24%
Spot market sales………………………………..	53.5	10%	51.6	12%	17.3	4%	-67%	-68%
Total revenues from energy and capacity sales	531.8	90%	432.4	91%	402.2	91%	-7%	-24%
Gas sales…………………………..	25.6	4%	13.2	3%	7.2	2%	-45%	-72%
Other operating revenue……………………….	30.4	5%	31.2	7%	33.3	8%	7%	10%
Total operating revenues………………….	587.8	100%	476.8	100%	442.7	100%	-7%	-25%
Physical Data (in GWh)
Sales of energy to unregulated customers (1)……	1,655	56%	1,783	58%	1,745	56%	-2%	5%
Sales of energy regulated customers……	1,252	43%	1,220	40%	1,374	44%	13%	10%
Sales of energy to the spot market…………….	31	1%	47	2%	22	1%	-53%	-28%
Total energy sales………………………….	2,938	100%	3,050	100%	3,142	100%	3%	7%
Average monomic price unregulated
customers(U.S.$/MWh)(2)	138.1		117.4		111.4		-5%	-19%
Average monomic price regulated customers
(U.S.$/MWh)(3)	199.4		140.6		138.7		-1%	-30%

Energy and capacity sales reached US$402.2 million in the first quarter of 2024, representing a 24% decrease (US$129.6 million), compared to the same quarter of the previous year. This decline can be attributed to lower average monomic prices for both regulated and unregulated customers.

The drop in tariffs is a result of decreases in inflation rates and fuel prices used in the indexation formulas of the contracts, which are reflected in this quarter's results.

When compared to the immediately preceding quarter, energy and capacity sales decreased by 7% (US$37.1 million), explained by lower sales volumes to regulated customers and declines in the average monomic prices of both unregulated and regulated customers.

In 2023 energy sales in the spot market included energy injections from the Kelar Power Plant operated by BHP under a tolling agreement with fuel provided by EECL. This explained the increase in this category for that period. In the first quarter of 2024, there was no tolling agreement, and physical sales to the spot market amounted to 22 GWh.

In the first quarter of 2024 gas sales decreased due to a drop in volumes sold as well as lower prices. The most relevant items in the 'Other operating revenue' account are sub-transmission tolls and regulatory transmission revenues, which starting 2018 include a single charge called "cargo único", as well as port and maintenance services.

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Operating Costs

	Quarterly Information (In US$ millions)
	1Q23	4Q23
Operating Costs	Amount	% of total	Amount	% of total
Fuel and lubricants………………………………	(177.3)	33%	(99.1)	33%
Energy and capacity purchases on the spot	(219.4)	41%	(182.7)	41%
market……………………………
Depreciation and amortization attributable to cost of goods	(43.4)	8%	(44.3)	8%
sold…………………………….
Other costs of goods sold…………………….	(83.5)	16%	(95.7)	16%
Total cost of goods sold………………..	(523.5)	99%	(421.8)	99%
Selling, general and administrative expenses…	(8.8)	2%	(13.8)	2%
Depreciation and amortization in selling, general and
administrative expenses…………	(1.3)	0%	(1.0)	0%
Other operating revenue/costs……………………….	3.1	-1%	5.4	-1%
Total operating costs….……………….	(530.5)	100%	(431.3)	100%
Physical Data (in GWh)
Gross electricity generation
Coal………………………………………….	351	22%	433	22%
Gas…………………………………………..	850	53%	205	53%
Diesel Oil and Fuel Oil…………………….	7	0%	0	0%
Hydro/Solar/Wind……………………………….	407	25%	415	25%
Bess	-	-	-	-
Total gross generation………………….	1,615	100%	1,054	100%
Minus Own consumption………………..	(61)	-4%	(53)	-4%
Total net generation…………………….	1,555	53%	1,000	53%
Energy purchases on the spot market………..	552	19%	1,299	19%
Energy purchases- bridge………..	800	28%	966	28%
Total energy available for sale before transmission
losses………………………	2,906	100%	3,265	100%

1Q24
Amount	% of total
(81.6)	24%
(157.6)	46%
(34.1)	10%
(59.8)	18%
(333.1)	98%
(10.6)	3%
(0.9)	0%
5.1	-2%
(339.4)	100%

49538%

41332%

00%

34326%

51	4%
1,303	100%

1. -5%

1,240

39%

93530%

98631%

3,161

100%

• Variation
  QoQ YoY
  -18%-54%

-14%	-28%
-23%	-21%
-37%	-28%
-21%	-36%
-24%	20%
-14%	-30%
-21%	-36%
14%	41%
101%	-51%
-67%	-100%
-17%	-16%
-	-
24%	-19%
18%	4%
24%	-20%
-28%	69%
2%	23%
-3%	9%

Gross electricity generation decreased by 19%, compared to the same quarter of 2023, and increased by 24% compared to the previous quarter. The increase in coal-based generation is explained primarily by higher dispatch priority of coal units. The increase in gas generation during the quarter compared to the fourth quarter of 2023 is explained by higher availability of this fuel, including gas coming from Argentina. However, when compared to the first quarter of 2023, gas generation decreased. Generation with renewables decreased compared to both the first quarter of 2023 and the previous quarter, in part due to curtailment related to transmission restrictions. On the other hand, for the first time the company registered generation associated with our BESS projects, which accounted for a 4% of our net generation during the first quarter.

Renewable generation decreased 17% compared to the fourth quarter of 2023, primarily due to lower solar, wind and hydro generation. Notably, ENGIE Chile's renewable portfolio, as of March 2024, includes the following additions: (i) Calama wind farm (151.2 MW) at the end of 2021, (ii) the Tamaya solar PV plant (114 MWac) which started its commercial operations in January 2022, (iii) the first injections of the Capricornio solar PV plant (88 MWac) starting April 2022, iv) the Coya PV plant (180 MWac) operational since August 2022, which obtained its COD as of March 2023 and v) the incorporation of the San Pedro wind farms in mid-December 2022.

In the first quarter of 2024, BESS Coya obtained the authorization by the CEN to start its commercial operation. This battery energy storage system has a 139 MW/638 MWh installed capacity and allows for the storage of energy generated by the Coya photovoltaic plant located in María Elena in the Antofagasta region.

The fuel cost item showed a 54% decrease compared to the same quarter of the previous year as a result of lower fuel prices and lower own generation. Compared to the fourth quarter of 2023, the fuel cost decreased by 18%, due to the reduction in fuel prices.

The 'Cost of energy and capacity purchases in the spot market' decreased compared to previous periods, mainly due to lower average spot prices, despite increased volumes of energy purchased in the spot market as well as through back-up contracts with other generators. Purchases under back-up supply contracts reached 986 GWh in the quarter compared to 800 GWh in the same quarter of the previous year. During the first quarter of 2024, there was a reduction in hydraulic supply as well as a drop in solar and wind generation. The cost of coal continued its

8

reduction as compared to the levels shown in 2022 and the beginning of 2023 and also due to the gradual consumption of inventories purchased at higher prices in the second half of 2022.

Other direct operating costs included, among others, transmission tolls, plant personnel salaries, operating and maintenance costs, insurance premiums and cost of fuels sold. These costs increased from the previous quarter mainly due to higher performance bonuses, severance provisions and maintenance costs.

SG&A expenses (excluding their depreciation) increased as compared to those in the first quarter of 2023 and decreased as compared to the previous quarter, mainly due to lower advisory and third party services.

The Other operating revenue/cost item includes water sales as well as recoveries, single transmission charges ("cargo único") and provisions and other miscellaneous income. EECL's share in TEN's net income, which amounted to US$0.8 million in the first quarter, is also included in this item.

Electricity Margin

Quarterly Information (In US$ millions)
			2023			2024
	1Q23	2Q23	3Q23	4Q23	2023	1Q24
Electricity Margin
Total revenues from energy and capacity sales………	531.8	552.3	469.5	432.4	1,986.0	402.2
Fuel and lubricants…………………..	(177.3)	(194.2)	(120.7)	(99.1)	(591.3)	(81.6)
Energy and capacity purchases on the spot market……	(219.4)	(224.3)	(189.2)	(182.7)	(815.6)	(157.6)
Gross Electricity Profit	135.1	133.8	159.6	150.6	579.1	163.0
Electricity Margin	25%	24%	34%	35%	29%	41%

In the first quarter of 2024, the electricity margin, or gross profit from the electricity generation business, recovered with a US$27.9 million increase, when compared to the same quarter of the previous year, increasing from 25% to 41% of energy and capacity revenues. This was due to lower fuel costs and lower electricity purchase costs, which together represented a 40% decrease, while there was also a decrease in revenues from energy and capacity sales which represented a 24% decrease.

Meanwhile, compared to the previous quarter, there was a US$12.4 million increase in the gross profit of the business, resulting in a raise from a 35% to a 41% profit margin. However, there were lower revenues from energy and capacity sales (US$30.2 million) due to the decline in average prices of energy sold, as a result of a decrease in the main tariff indexers (CPI and gas and coal prices). Additionally, there was a decrease in costs, both for fuels (amounting to US$17.6 million), attributed to falling prices, and for the energy and capacity purchases in the spot market (totaling US$25.1 million), primarily due to reduced volumes of purchases from the system.

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Operating Results

	Quarterly Information (in US$ millions)
EBITDA	1Q23	4Q23	1Q24	% Variation
	Amount	% of total	Amount	% of total	Amount	% of total	QoQ	YoY
Total operating revenues………………………	587.8	100%	476.8	100%	442.7	100%	-7%	-25%
Total cost of goods sold……………………	(523.5)	-89%	(421.8)	-89%	(333.1)	-75%	-21%	-36%
Gross income………………………….	64.3	11%	55.0	11%	109.6	25%	99%	71%
Total selling, general and administrative expenses and
other operating income/(costs).	(7.0)	-1%	(9.4)	-1%	(6.3)	-1%	-33%	-10%
Operating income….……………….	57.3	10%	45.5	10%	103.3	23%	127%	80%
Depreciation and amortization……...…………	44.7	8%	45.4	8%	35.0	8%	-23%	-22%
EBITDA…………….….……………….	102.0	17.3%	90.9	17.3%	138.3	31.2%	52%	36%

EBITDA for the first quarter of 2024 reached US$138.3 million, a 52% increase compared to the previous quarter and a 36% increase compared to the first quarter of 2023, mainly due to the recovery in the electricity margin explained in the previous paragraph.

Financial Results

	Quarterly Information (In US$ millions)
	1Q23	4Q23	1Q24	% Variation
Non-operating results	Amount	% of total	Amount	% of total	Amount	% of total	QoQ	YoY
Financial income………..………………………	1.3	0%	3.2	1%	4.1	1%	27%	214%
Financial expense………….…………………	(27.9)	-6%	(26.2)	-4%	(33.7)	-5%	29%	21%
Foreign exchange translation, net……………	(0.3)	0%	1.6	0%	(10.3)	-2%	n.a.	n.a.
Other non-operating income/(expense) net…	(3.4)	-1%	(604.9)	-103%	-	0%	n.a.	n.a.
Total non-operating results…………….	(30.3)	-6%	(626.3)	-107%	(39.9)	-6%
Income before tax……………………. ………	27.1	6%	(580.8)	-99%	63.4	10%	n.a.	134%
Income tax………………………………………	(7.4)	-2%	100.2	17%	(17.3)	-3%	n.a.	136%
Net income from continuing operations after taxes
…	19.7	4%	(480.6)	-82%	46.1	7%	n.a.	n.a.
Net income to EECL's shareholders	19.7	4%	(480.6)	-82%	46.1	7%	n.a.	n.a.
Earnings per share……………………..	0.019		(0.456)		43.725

In the first quarter of 2024, net interest expense increased by US$3 million compared to the first quarter of 2023. The US$5.8 million increase in financial expenses, explained by higher debt balances at higher interest rates, could have been higher had it not been for a US$4.5 million increase in capitalized interest. The successive increase in global interest rates and higher cash balances explained a US$2.8 million increase in financial income that contributed to offset the increase in financial expenses. When comparing with the fourth quarter of 2023, financial expenses increased by US$3.8 million, mainly due to higher debt balances and fees paid on new loan disbursements, while interest income increased by US$0.9 million.

Exchange rate differences resulted in a US$10.3 million loss in the first quarter of 2024 due to foreign exchange volatility, with a depreciating trend of the Chilean peso, particularly in January. This compared with a US$0.3 million foreign exchange loss in the first quarter of 2023 and a US$1.6 million foreign exchange gain in the fourth quarter of 2023. Fluctuations in exchange rates affect the value of certain assets and liabilities denominated in currencies other than the US dollar, the company's functional currency. These include some accounts receivable and payable, advances to suppliers, value-added tax credit and, more importantly, liabilities for onerous concessions on land and other assets recorded on the balance sheet under the IFRS16 norm.

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