Empresa Nacional de Electricidad : Endesa Chile's net income up 17% in 2015, mainly on the back of strong operational performance in Chile

Operational Highlights• Power generation in 2015 grew 4% on 2014 to 51,622 GWh due to increased thermal generation mainly in Argentina, Colombia and Chile, as well as increased hydro generation mainly in Argentina and Chile. • Energy sales were 61,046 GWh, an 8% rise, mainly due to growing regulated customer sales in Chile and Colombia as well as increased spot market sales in Argentina and Chile.

Financial results• Revenues grew by 16% to 2,846,926 million CLP in 2015, mostly due to higher average energy sales prices in Chile, increased sales in Chile, Argentina and Colombia, and the consolidation of GasAtacama. • EBITDA increased by 9% in 2015 to 1,191,661 million CLP, mainly due to higher sales partially offset by an increase in supplies and services' costs.• EBIT was 963,400 million CLP in 2015, a 10% increase on 2014. • Net income attributable to Endesa Chile's shareholders increased by 17% to 392,868 million CLP, due to better operating results in Chile and improved financial income and account receivables in US dollars from Argentina. • Endesa Chile invested 615,819 million CLP in 2015, compared with 603,047 million CLP in 2014. • Net financial debt in 2015 was 2,853 million US dollars, a 2% decrease compared to the 2,953 million US dollars posted in 2014.

Net income attributable to the shareholders of Endesa Chile reached 392,868 million CLP in 2015, a 17% increase over 2014. This growth is mostly attributable to improved operating results mainly from Chile and Argentina, and higher financial income as well as positive exchange rate differences following the adoption of US dollars on account receivables in Argentina related to investments made in the previous years.

'2015 was a very positive year for us, especially in the generation business in Chile where EBITDA grew by 41% thanks to a better technology mix, reinforced by a significant output increase from the country's hydropower facilities', said the Head of Endesa Chile, Valter Moro 'These operating and financial results position us well for the challenging macro-economic scenario that analysts project for 2016.'

In 2015, net energy generation of Endesa Chile rose by 4% to 51,622 GWh compared to 2014. This outcome resulted from higher thermal generation (+ 1,109 GWh), and mainly came from the combined-cycle plants in Argentina and greater coal generation in Colombia and Chile. Additionally, hydropower generation grew by 2% (+ 698 GWh), mainly in Argentina and Chile.

Sales grew by 8% (+ 4,354 GWh) to 61,046 GWh, mainly due to higher sales to regulated customers, primarily in Chile and Colombia, and also due to higher sales on the spot market mainly in Argentina and Chile.

Total revenues rose by 16% to 2,846,926 million CLP, mainly due to higher average energy sale prices in Chile, increased sales in Chile, Argentina and Colombia, and higher revenues in the amount of 69,941 million CLP contributed by GasAtacama, a subsidiary whose results have been fully consolidated since May 2014.

Consolidated EBITDA of Endesa Chile grew by 9% in 2015, totalling 1,191,661 million CLP, mainly due to higher sales (+18%), which were partially offset by a 22% increase in costs for supplies and services in the amount of 243,180 million CLP.

As a result of the above, EBIT reached 963,400 million CLP, an increase of 10% compared with the 875,321 million CLP accounted for in 2014.

Net financial charges were 46,565 million CLP, a 32% decrease over 2014, largely due to higher financial income and positive exchange rate differences due to the adoption of US dollars on account receivables in Argentina related to investments made in the previous years.

Net financial debt in 2015 was 2,853 million US dollars, a 2% decrease compared to 2,953 million US dollars posted in 2014, mainly due to the expiration of a bond in the United States and the devaluation of the Colombian peso against the dollar.

During 2015, the company's total investments were 615,819 million CLP compared with 603,047 million CLP in 2014. Investments in growth mainly addressed the Colombian hydropower plant El Quimbo (completed), environmental improvements in the Chilean coal-fired power plant Bocamina II and the start of construction works at the Chilean hydropower plant Los Cóndores.

Note: Results are from all Endesa Chile activities. Starting from February 1st, 2016, Endesa Chile separated its activities, leaving the operations in Chile under Endesa Chile and the rest under Endesa Américas, the latter being consolidated as 'discontinued operations'.