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 July, 2021

Commission File Number: 001-37723

Enel Chile 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]

Indicate by check mark whether by furnishing the information
ontained in this Form, the Registrant is also thereby furnishing the
information to the Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes    [  ]      No    [X]

If °;Yes” is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): N/A 

ENEL CHILE

ANNOUNCES CONSOLIDATED RESULTS

FOR THE PERIOD ENDED JUNE 30, 2021

(Amounts expressed in millions of Chilean Pesos)

EXECUTIVE SUMMARY

BUSINESS SEGMENT SUMMARY

Generation

Distribution and Transmission

FINANCIAL SUMMARY- ENEL CHILE

Gross financial debt of the Company increased US$ 246 million to US$ 4,398 million when compared to the balance as of June 2020. This variation was mainly explained by a bank loan for US$ 300 million of Enel Chile signed in April 2021, a US$ 100 million disbursement of a revolving credit line in May 2021 by Enel Chile, and a US$ 34 million increase in leasing liabilities (IFRS 16). These transactions were offset by the EGP Chile repayment of a bank loan for US$ 150 million in December 2020, and a US$ 38 million amortization of Enel Generación Chile’s local H and M bonds.

Liquidity available to Enel Chile is composed of the following:

(*) Includes two committed credit lines with related parties of Enel Chile for US$ 50 million and US$ 290 million with Enel Finance International. The first is completely undisbursed and the second has disbursed US$100 million.

The average cost of Enel Chile’s debt as of June 2021 remained stable at 4.6%, when compared to the same period of 2020.

Hedging and protection:

To mitigate the risks associated with exchange rate and interest rate variations, Enel Chile has established policies and procedures to protect its financial statements against the volatility of these variables.

Enel Chile’s exchange rate hedging policy states that there should be a balance between the currencies of each company’s operations and the currency of its debt. Therefore, we have cross currency swaps and forward contracts that amount to US$ 359 million and US$ 279 million, respectively.

To reduce financial statement volatility caused by interest rate variations, the Enel Chile Group maintains an adequate debt structure balance. Therefore, the Company has interest rate swaps for US$ 550 million.

INFORMATION RELEVANT TO THE ANALYSIS OF THESE FINANCIAL STATEMENTS

Regulatory Changes:

On September 14, 2020, the National Energy Commission published Exempt Resolution 340 that modified the technical provisions regarding the implementation of the Tariff Stabilization Law. This Resolution clarified that the payment to each supplier “must be booked against the Balance in a chronological manner, beginning with the most dated to the most recent pending Balances”, and not weighted based on the total Balance pending payment as it had been interpreted by the industry up to such date.

Additionally, this Resolution established that the payment of Balances is to be performed using the Observed Exchange Rate on the sixth working day following the day the Balance Payment Chart is published by the System Coordinator, which replaces the average value of the dollar during the billing month that had been in force up to then.

Additionally, in order to comply with the latest amendments issued by the Ministry of Economy, Development and Reconstruction to Electricity Law 4/2016 establishing that distribution companies are only to distribute electricity as their sole purpose, on January 1, 2021, Enel Transmission Chile S.A. was created from the division of Enel Distribución Chile S.A. receiving all assets and liabilities of Enel Distribución Chile’s electricity transmission business segment.

MARKETS IN WHICH ENEL CHILE S.A. OPERATES

Generation Segment

We carry out our generation business in Chile through our subsidiaries Enel Generación Chile and EGP Chile, which combined, have a total 7,354 MW gross installed capacity as of June 30, 2021. Enel Chile’s assets in the Generation business are diversified but concentrate on renewable energy, which represents 67% of the Company’s total installed capacity. Hydroelectric power amounts to 3,561 MW, thermal power that operate using gas, coal, or fuel oil amounts to 2,454 MW, wind generation power amounts to 642 MW installed capacity, solar generation capacity amounts to 621 MW and geothermal power represents 76 MW installed capacity.

The following chart summarizes the accumulated and quarterly physical information of our generation business segment as of June 30, 2021, and 2020:

Distribution and Transmission Segment

Our Distribution and Transmission business is carried out by our subsidiaries Enel Distribución Chile and Enel Transmisión Chile.

Enel Distribución Chile is one of the largest electricity distribution companies in Chile in terms of the number of regulated customers, distribution assets, and electricity sales. It operates in a 2,105 square kilometer concession area. The Chilean Government granted the concession agreement to transmit and distribute electricity to 33 counties of the Metropolitan Region, including the concession areas of our subsidiary Enel Colina S.A., for an unlimited period of time. Its service area, from the Chilean tariff regulation perspective, is considered primarily a densely populated area.

Enel Transmisión Chile was created on January 1, 2021, from the division of Enel Distribución Chile and received all assets and liabilities of Enel Distribución Chile’s electricity transmission business segment, including the subsidiary Empresa de Transmisión de Chena S.A. This division was carried out to comply with the amendments issued by the Ministry of Economy, Development and Reconstruction to Electricity Law 4/2016 establishing that distribution companies are only to distribute electricity as their sole purpose.

The following chart summarizes the physical information of our Distribution and Transmission business segment for the period ended June 30, 2021, and 2020:

The following chart shows the accumulated and quarterly electricity sales revenues per business segment and customer type as of June 30, 2021, and 2020:

I. CONSOLIDATED FINANCIAL STATEMENT ANALYSIS

Net income attributable to the shareholders of Enel Chile as of June 30, 2021, reached a Ch$ 63,440 million profit, which represents a Ch$ 391,381 million increase when compared to the Ch$ 327,941 million loss for the same period of 2020. Regarding the results of Q2 2021, net income attributable to the shareholders of Enel Chile reached Ch$ 19,717 million, a Ch$ 418,651 million increase when compared to Q2 2020.

The following chart compares the accumulated and quarterly figure of each item of the income statement as of June 30, 2021, and 2020:

EBITDA:

Consolidated EBITDA of Enel Chile as of June 30, 2021, amounted to Ch$ 293,840 million, which represents a 26.1% reduction when compared to Ch$ 397,637 million booked the same period of the previous year. This reduction is primarily explained by higher energy purchase costs in the generation business.

Consolidated EBITDA for Q2 2021 amounted to Ch$ 145,516 million, which represents a Ch$ 56,778 million decrease when compared to the Q2 2020, mainly explained by greater operating costs in the generation business.

Accumulated and quarterly operating revenues, operating costs, personnel, and other expenses that determine our EBITDA, broken down by business segment for the periods ended June 30, 2021, and 2020, are presented below:

Generation Business EBITDA

EBITDA of our Generation Business Segment reached Ch$ 266,155 million as of June 30, 2021, which represents a Ch$ 71,018 million, or 21.1%, reduction when compared to the same period of 2020. EBITDA of this business segment during Q2 2021 declined 21.6% when compared to the same quarter of 2020.

The main variables that explain this result are described below:

The above was partially offset by:

Operating revenues during Q2 reached Ch$ 463,115 million, which represents a Ch$ 61,785 million increase when compared to the same quarter of 2020, mainly due to the following:

The above was partially offset by:

§  Operating costs reached Ch$ 511,048 million as of June 30, 2021, a Ch$ 130,137 million increase, equivalent to 34.2%, when compared to the same period of 2020 due to the following:

The above was partially offset by:

Operating costs during Q2 2021 reached Ch$ 276,990 million, which represents a Ch$ 83,699 million increase when compared to the same quarter of 2020, mainly due to the following:

The above was partially offset by:

During Q2 2021, personnel expenses (after capitalized personnel costs) amounted to Ch$ 18,623 million, which represents a Ch$ 6,597 million increase when compared to the same quarter of 2020, mainly explained by greater restructuring costs for Ch$ 6,394 million and lower capitalization of personnel expenses for Ch$ 297 million.

Other expenses in Q2 2021 amounted to Ch$ 29,505 million, which represents a Ch$ 9,590 million increase when compared to the same quarter of last year, mainly due to higher: (i) maintenance and repair service expenses for Ch$ 6,132 million; (ii) insurance premiums for Ch$ 1,152 million; (iii) professional, technical and administrative service costs for Ch$ 1,060 million; and (iv) other various expenses amounting to Ch$ 1,246 million.

Distribution and Transmission Business EBITDA:

EBITDA of our Distribution and Transmission Business Segment reached Ch$ 43,193 million for the six-month period ended June 30, 2021, which represents a Ch$ 38,731 million, or 47.3%, reduction when compared to the same period of last year. The main variables that explain this outcome are described below:

The above was partially offset by:

Operating revenues for Q2 2021 amounted to Ch$ 295,864 million, which represents a Ch$ 28,297 million reduction, equivalent to 8.7%, when compared to the same quarter of 2020 mainly due to lower energy sales amounting to Ch$ 30,262 million primarily as a result of lower physical energy sales (-577 GWh) mainly in the commercial and industrial customer segments mostly due to the sale of the unregulated customer contracts to Enel Generación Chile. The later was partly offset by greater other operating revenues for Ch$ 2,876 million, mainly related to the reversal of the provision of the SEC fine for Ch$ 1,851 million.

Operating costs for Q2 2021 amounted to Ch$ 246,305 million, which represents a Ch$ 17,253 million reduction when compared to Q2 2020, mainly due to: (i) lower energy purchases amounting to Ch$ 15,257 million primarily as a result of lower physical energy purchases (-608 GWh) during Q2 equivalent to Ch$ 48,487 million, partially offset by a higher average purchase price amounting to Ch$ 33,256 million; and (ii) lower transportation costs for Ch$ 3,727 million.

Personnel expenses (after capitalized personnel costs) for Q2 2021 increased Ch$ 7,184 million when compared to Q2 2020, mainly due to higher restructuring expenses for Ch$ 8,581 million, partly compensated by higher capitalization of personnel expenses related to investment projects for Ch$ 1,312 million.

Other expenses for Q2 2021 reached Ch$ 18,428 million, in line with the figure for the same period of 2020 that amounted to Ch$ 18,517 million.

Depreciation, Amortization and Impairment

The following table summarizes the accumulated and quarterly figures of Enel Chile Group EBITDA, depreciation, amortization and impairment expenses and EBIT broken down by segment as of June 30, 2021, and 2020.

Depreciation, amortization, and impairment costs amounted to Ch$ 108,678 million, for the six-month period ended June 30, 2021, a Ch$ 722,271 million reduction when compared to the same period of the previous year. This variation is mainly explained by:

During Q2 2021, depreciation, amortization, and impairment expenses amounted to Ch$ 53,708 million, representing a Ch$ 710,827 million reduction when compared to the same quarter of 2020 due to: (i) a Ch$ 695,826 million reduction in the generation business explained by the impairment of coal fired power plant Bocamina II booked as of June 2020; and (ii) a Ch$ 11,570 million reduction in depreciation and amortization resulting from less depreciation of Central Bocamina II for Ch$ 6,197 million and from EGP Chile Group mainly related to exchange rate effects for Ch$ 3,986 million.

Non-Operating Income

The following chart presents Enel Chile’s accumulated and quarterly consolidated non-operating income as of June 30, 2021, and 2020:

Financial Result

The consolidated financial income of Enel Chile, as of June 30, 2021, amounted to a Ch$ 92,798 million loss, a Ch$ 32,480 million higher loss than the Ch$ 60,318 million loss booked for the same period of 2020. During Q2 2021, financial income reached a Ch$ 54,484 million loss, which represents a 58.2% higher loss than the one booked for Q2 2020. These results are primarily explained by the following:

Financial income decreased Ch$ 1,938 million mainly due to: (i) lower returns on short term fixed income investments amounting to Ch$ 2,526 million; and (ii) lower financial income related to customer account refinancing and other financial income for Ch$ 659 million. These effects were offset by higher income related to the Tariff Stabilization Law amounting to Ch$ 1,247 million.

During Q2 2021, financial income decreased Ch$ 472 million when compared to the same quarter of 2020, mainly due to: (i) lower financial income related to customer account refinancing and other financial income for Ch$ 1,230 million; and (ii) lower income on short term fixed income investments amounting to Ch$ 755 million. These effects were offset by higher income related to the Tariff Stabilization Law amounting to Ch$ 1,458 million.

Financial expenses increased Ch$ 26,408 million, primarily explained by higher financial expenses mostly due to: (i) factoring contracts for Ch$ 42,086 million, of which Ch$ 40,385 million are related to the sale of accounts receivables that arise from the Tariff Stabilization Law; and (ii) higher financial expenses for Ch$ 11,610 million from commercial agreements with customers. These effects were partially offset by: (i) higher capitalization of interest amounting to Ch$ 20,895 million related to the development of non-conventional renewable energy projects and a greater continuity in the development of the Los Cóndores project; and (ii) lower interest on bonds and bank loans amounting to Ch$ 7,810 million.

During Q2 2021, financial expenses increased Ch$ 11,545 million when compared to the same quarter of 2020, mainly due to: (i) higher financial expenses on factoring contracts for Ch$ 9,995 million of which Ch$ 9,046 million are related to the sale of accounts receivables that arise from the Tariff Stabilization Law; and (ii) higher financial expenses for Ch$ 11,610 million from commercial agreements with customers. These effects were partly offset by: (i) higher capitalization of interest amounting to Ch$ 9,390 million related to the development of non-conventional renewable energy projects and a greater continuity in the development of the Los Cóndores project; and (ii) lower interest on bonds and bank loans amounting to Ch$ 2,002 million.

Income related to indexation increased Ch$ 2,346 million, primarily due to: (i) a Ch$ 2,255 million greater profit from the indexation of financial instruments primarily related to financial debt and derivative instruments; and (ii) higher income from recoverable taxes for Ch$ 1,370 million. The aforementioned was partially offset by the negative effect caused by IAS 29 “Financial Reporting in Hyperinflationary Economies” on the branch of the subsidiary Enel Generación Chile located in Argentina for Ch$ 1,057 million.

During Q2 2021, income related to indexation increased Ch$ 2,939 million when compared to the same quarter of 2020, primarily due to: (i) higher income from recoverable taxes for Ch$ 2,046 million; and (ii) greater profit from the indexation of financial instruments for Ch$ 4,788 million primarily related to financial debt and derivative instruments. These effects were partially offset by: (i) a greater loss due to the indexation of non-financial assets and liabilities for Ch$ 3,210 million; and (ii) the greater negative effect caused by IAS 29 “Financial Reporting in Hyperinflationary Economies” on the branch of the subsidiary Enel Generación Chile located in Argentina for Ch$ 597 million.

The loss from exchange rate differences increased Ch$ 6,479 million, mainly due to lower positive exchange rate difference on: (i) trade accounts receivables for Ch$ 34,270 million that includes the Ch$ 13,331 million lower positive effect related to the Tariff Stabilization Law that set the US dollar as the currency for the accounts receivables of pending billings to regulated customers; and (ii) cash and cash equivalents for Ch$ 10,918 million.

The abovementioned was partially offset by the lower negative exchange rate difference effect on: (i) trade accounts payables for Ch$ 34,806 million that include the Ch$ 2,396 million lower negative exchange rate effect of the Tariff Stabilization Law; and (ii) other non-financial assets and liabilities for Ch$ 3,907 million.

During Q2 2021, the loss from exchange rate differences increased Ch$ 10,975 million, when compared to the same quarter of 2020 primarily due to: (i) the lower positive exchange rate difference on trade accounts receivables for Ch$ 16,289 million that includes the Ch$ 11,655 million positive effect related to the Tariff Stabilization Law; (ii) greater negative exchange rate difference on other financial liabilities related to financial debt and derivatives for Ch$ 2,674 million; and (iii) greater negative exchange rate difference on cash and cash equivalents for Ch$ 1,862 million.

The aforementioned was partially offset by the lower negative exchange rate difference effect on trade accounts payables for Ch$ 9,361 million that includes the Ch$ 4,667 million negative related to the Tariff Stabilization Law.

Corporate Taxes:

Corporate income tax reached a Ch$ 20,537 million expense as of June 30, 2021, which represents a Ch$ 164,446 million lower profit when compared to the same period of the previous year, primarily explained by: (i) a Ch$ 187,873 million lower tax income due to the impairment loss of coal fired power plant Bocamina II booked in 2020; (ii) a Ch$ 10,765 million increase in tax income due to the higher financial expenses related to accounts receivables factoring; and (iii) a Ch$ 5,943 million increase in tax income due to the price-level restatement of the period.

During Q2 2021, Corporate income tax reached a Ch$ 12,483 million expense, which represents a Ch$ 182,172 million lower profit when compared to same quarter of 2020 primarily due to the Ch$ 187,873 million lower income due to the higher impairment losses mentioned previously that were booked in 2020. This was partly offset by the Ch$ 3,794 higher profit due to the period’s price-level restatement effect.

Total assets of the Company as of June 30, 2021, increased Ch$ 282,168 million, equivalent to a 3.6% increase when compared to total assets as of December 31, 2020.

Current Assets increased Ch$ 49,912 million as of June 30, 2021. The variations in the main categories are presented below:

These effects were partially offset by:

Non-Current Assets increased Ch$ 232,256 million as of June 30, 2021, when compared to December 31, 2020. The variations in the main categories are presented below:

These effects were partially compensated by:

Total Liabilities of the Company as of June 30, 2021, including Equity, reached Ch$ 8,186,640 million, which represents a 3.6% increase when compared to total liabilities as of December 31, 2020, mainly due to the following:

Current liabilities increased Ch$ 164,689 million. The variations in the main categories are presented below:

These effects were partly offset by:

Non-Current Liabilities increased Ch$ 284,817 million as of June 30, 2021, which is explained by the following:

These effects were partially offset by:

Total Equity amounted to Ch$ 3,426,937 million as of June 30, 2021, which represents a 4.7% negative variation when compared to December 31, 2020, mainly explained by the following:

The performance of main financial ratios is the following:

When excluding the extraordinary effects related to fuel inventory write-offs due to the disconnection of Bocamina II booked during the first semester of 2020 and 2021, and the restructuring provisions booked during the first semester of 2021, this index would have declined 43.8% (3.15 as of June 2021 compared to 5.6 as of June 2020).

When excluding the extraordinary effects booked in 2021 and 2020, the profitability index would have dropped 6.1 percentage points (15.3% as of June 2021 compared to 21.4% as of June 2020).

The net cash flow of Enel Chile Group reached Ch$ 10,839 million as of June 30, 2021, which represents a Ch$ 102,999 million reduction when compared to the same period of last year. The main factors that explain this cash flow, classified as either operating, investing, or financing activities, compared to June 2020, are presented below:

Net cash flow from operating activities amounted to a Ch$ 351,189 million for the six-month period ended June 30, 2021, which represents a 59.8% increase when compared to June 2020. This cash flow mainly comprises the cash inflows from the collection of sales of goods and services amounting to Ch$ 1,811,766 million, which was partially offset by the following cash outflows: (i) supplier payments for Ch$ 1,212,376 million; (ii) income tax payments for Ch$ 88,317 million; (iii) employee payments for Ch$ 65,796 million; (iv) net insurance premium payments for Ch$ 17,615 million; and (v) other operating cash disbursements for Ch$ 76,473 million, mainly value added tax payments and other taxes.

The most significant operating cash inflow that amounted to Ch$ 131,349 million was primarily due to trade accounts receivables factoring by Enel Generación Chile, EGP Chile and Enel Distribución Chile carried out during the first semester of 2021 for a total Ch$ 263,363 million, offset by higher income tax payments for Ch$ 110,405 million.

Net cash flow used in investing activities amounted to Ch$ 440,500 million for the six-month period ended June 30, 2021.This cash flow comprises the following: (i) Ch$ 426,679 million to purchase (net of sales) property, plant and equipment; and (ii) Ch$ 18,078 million to purchase intangible assets.

The most relevant investment cash outflow when compared to June 2020 for Ch$ 185,848 million is mainly explained by a Ch$ 204,501 million purchase of property, plant and equipment, primarily by EGP Chile Group related to their renewable project portfolio. This cash outflow was partially offset by a Ch$ 18,197 million cash inflow from Enel Generación Chile’s sale of the Quintero-San Luis transmission line.

Net cash flow from financing activities amounted to Ch$ 100,151 million for the six-month period ended June 30, 2021. This cash flow mainly comprises the cash inflow from the new loans granted by EFI to Enel Chile for Ch$ 287,175 million. It was partially offset by the following cash outflows: (i) dividend payments for Ch$ 104,878 million; (ii) interest payments for Ch$ 62,867 million; and (iii) Enel Generación Chile bond payments for Ch$ 16,546 million.

The Ch$ 48,500 million reduction in the financing cash flow when compared to June 2020 is mainly explained by the Ch$ 197,345 million lower level of loans granted by EFI to Enel Chile partially offset by a Ch$ 141,406 million lower dividend payment.

The following table presents the cash disbursements related to additional Property, Plant and Equipment and its Depreciation for the six-month period ended June 30, 2021, and 2020.

The most relevant cash outflows originate in the generation business and are related to the construction of new renewable electricity generation projects that amount to Ch$ 406,756 million as of June 30, 2021.

II. MAIN RISKS ASSOCIATED WITH THE ACTIVITY OF ENEL CHILE S.A. GROUP

The Group’s activities are subject to a broad set of governmental regulations, and any changes in them could affect their activities, economic situation and operating income.

The Group’s operating subsidiaries are subject to a wide range of tariff regulations and other aspects that govern their operations in Chile. Consequently, the introduction of new laws or regulations, or the modification of current laws and regulations, could affect their operations, economic situation and operating results.

These new laws or regulations, on occasion, modify regulatory aspects that may affect existing entitlements which, as the case might be, may adversely affect the Group’s future income.

The Group’s operations are also subject to wide-ranging environmental regulations that Enel Chile continuously meets. Eventual modifications introduced to such regulations could affect its operations, economic situation and operating income.

These regulations, among other things, require the preparation and submission of Environmental Impact Studies for projects under study, obtaining licenses, permits and other mandatory authorizations and complying with all the requirements imposed by such licenses, permits and regulations. Just as with any regulated company, Enel Chile cannot guarantee that:

The Group’s commercial operations have been planned in order to mitigate possible impacts as a result of changing hydrological conditions.

The operations of Enel Chile Group include hydroelectric generation, and therefore, depend on actual hydrological conditions throughout a broad geographical area where the Group’s hydroelectric generation facilities are located. Should the hydrological conditions lead to droughts or other conditions that might negatively affect hydroelectric generation business, our results could be adversely affected, which is why Enel Chile has established, as an essential part of its commercial policy, to refrain from contractually committing 100% of its generation capacity. At the same time, the electricity business is also affected by meteorological conditions, such as temperatures, that affect consumption. Our margins may be affected by weather conditions depending on the different climate conditions.

The financial situation and the results of our operations may be negatively affected if the exposure to interest rate fluctuations, commodity prices and foreign exchange rates are not effectively managed.

RISK MANAGEMENT POLICY

The companies of the Enel Chile Group follow the guidelines of the Risk Management Control System (SCGR) defined at the Holding level (Enel SpA), which establishes the guidelines for risk management through the respective standards, procedures, systems, etc., which are applied at the different levels of the Enel Chile Group Companies, in the processes of identification, analysis, evaluation, treatment and communication of risks that the business faces continuously. These are approved by the Board of Directors of Enel SpA, which houses a Controls and Risks Committee, which supports the evaluation and decisions of the Board of Directors of Enel Chile with respect to internal controls and risk management system, as well as those related to the approval of the periodic financial statements.

To comply with this, there is a specific Risk Control and Management policy within each Company, which is reviewed and approved at the beginning of each year by the Board of Directors of Enel Chile, observing and applying local requirements in terms of risk culture.

The company seeks protection for all risks that may affect the achievement of business objectives. In January 2020, a new risk taxonomy has been approved for the entire Enel Group, which considers 6 macro categories and 37 sub-categories.

The Enel Group's risk management system considers three lines of action (defense) to obtain effective and efficient management of risks and controls. Each of these three "lines" plays a distinct role within the broader governance structure of the organization (Business and Internal Controls areas, acting as the first line, Risk Control, acting as the second line and Internal Audit as the third line of defense). Each line of defense has the obligation to inform and keep Senior Management and Directors updated on risk management, with Senior Management being informed by the first and second line of defense and the Board of Directors in turn by the second and third line of defense.

Within each company of the Group, the risk management process is decentralized. Each manager responsible for the operational process in which the risk originates is also responsible for the treatment and adoption of risk control and mitigation measures.

Interest Rate Risk

Interest rate variations modify the fair value of interest bearing at a fixed rate assets and liabilities, as well as future flows of assets and liabilities indexed at a variable rate of interest.

The aim of managing the interest rate risk is to reach a debt structure balance that would enable to minimize debt costs while reducing Income Statement volatility.

The debt structure according to interest rate, measured as the percentage of fixed debt and/or protected above total gross debt, is the following:

Depending on the Group’s estimates and on the objectives of its debt structure, various hedging operations are carried out via contracting derivatives to mitigate such risks.

Risk control through specific processes and indicators allows limiting possible adverse financial impacts and, at the same time, optimizes the debt structure with an adequate degree of flexibility. In this sense, the volatility that characterized the financial markets during the first phase of the pandemic, in many cases returned to pre-COVID-19 levels and was offset by effective risk mitigation actions through derivative financial instruments.

Foreign Exchange Rate Risk

Foreign exchange rate risks are primarily inherent to the following transactions:

In order to mitigate the foreign exchange rate risk, the hedging policy of the Enel Chile aims at maintaining a balance between US$-indexed flows or local currencies flows if they exists, and the level of assets and liabilities denominated in such currency. The aim is to minimize the exposure of cash flows to foreign exchange rate variations.

The instruments currently used to comply with the policy are foreign exchange forwards and currency swaps.

During the first semester of 2021, exchange rate risk management continued in the context of complying with the aforementioned risk management policy, without difficulty in accessing the derivatives market. It should be noted that the volatility that characterized the financial markets during the first phase of the pandemic, in many cases returned to pre-COVID-19 levels and was offset by risk mitigation actions through derivative financial instruments.

Commodity Risk

The Enel Chile Group is exposed to the risk of price variations of certain commodities, primarily the following:

In order to reduce the risk under extreme drought conditions, the Group has designed a policy that defines sale commitment levels in line with the capacity of its generating facilities during a dry year, by including risk mitigation clauses in some contracts with unregulated clients and, in the case of regulated clients subject to long-term tender processes, by establishing indexing polynomials to reduce commodity exposure.

In consideration of the operational conditions Chile is facing in the electricity generation market and the drought and commodity price volatility in international markets, the Company is continuously reviewing the convenience of hedging the impact of these price variations on its net income.

As of June 30, 2021, the Company held swaps for 456 kBbl of Brent oil to be settled in 2021 and 320 kBbl of Brent oil to be settled in 2022, 405 kTon of Coal API2 to be settled in 2021, for 9.45 TBtu of Henry Hub gas to be settled in 2021, and for 3.79 TBtu of Henry Hub gas to be settled in 2022.

As of December 31, 2020, the Company held swaps for 1,782 kBbl of Brent to be settled in 2021 and 16.8 TBtu of Henry Hub to be settled in 2021.

According to the operating conditions that are updated permanently, these hedges may be amended, or include other commodities.

The Group was able to minimize the effects of volatility in commodity prices on the results of the first half of 2021 due to the mitigation strategies implemented.

Liquidity risk

The Group maintains a liquidity policy that consists of contracting long-term credit commitment facilities and temporary financial investments for amounts sufficient to support the forecast needs in a given period which, in turn, is a function of the overall situation and expectations of the debt and capital markets.

The above-mentioned forecast needs include maturities of net financial debt, that is to say, net of financial derivatives. For further details regarding the conditions of financial debt and financial derivatives, please refer to Notes 19 and 22 of the Consolidated Financial Statements of Enel Chile as of June 30, 2021.

As of June 30, 2021, the liquidity of Enel Chile Group was Ch$ 333,879 million in cash and cash equivalents and Ch$ 281,438 million in long-term committed credit lines. As of December 31, 2020, the liquidity of Enel Chile Group was Ch$ 332,036 million in cash and cash equivalents and Ch$ 140,643 million in long-term committed credit lines.

Credit risk

The Enel Chile Group continually monitors in depth all credit risks as described below:

Commercial Accounts receivable:

In relation to the credit risks of accounts receivable from commercial activities, this risk has historically been quite limited given that clients cannot accumulate significant amounts due to short collection terms. The foregoing is applied to both our electricity generation and distribution lines of business.

In our electricity generation business, in some contracts with unregulated clients, it is possible to cut off supply when there are payment defaults, and almost every contract includes non-payment as a reason for contract termination. To that effect, we continuously monitor the credit risk and measure the maximum amounts exposed to payment risk; which, as stated earlier, are quite limited.

In our electricity distribution business, supply cut-off is a power of the company in the event of customers default, which is applied in accordance with current regulations, easing the process of evaluation and control of credit risk, which is also limited. However, the measure of supply cut-off in the event of payment defaults was suspended since March 2020, as a support measure for the most vulnerable customers adopted by Enel Distribución Chile, and subsequently in compliance with Law No. 21,249, which was extended for the second time by Law No. 21,340 published on May 22, 2021, with a new term until December 31, 2021.

With respect to the impact of COVID-19, the results of specific internal analyses did not reveal significant statistical correlations between the main economic indicators (GDP, unemployment rate, etc.) and solvency. However, impairment losses increased in 2020 as a result of an increase in expected credit losses from counterparties.

Financial assets:

Investments of cash surpluses are made with both national and foreign first-class financial entities with limits set for each entity.

Investment banks selection considers those with Investment Grade rating, considering the three major international rating agencies (Moody’s, S&P and Fitch).

Investments may be guaranteed by treasury bonds of Chile and/or paper issued by first class banks, giving priority to those offering the best returns (always within the current investment policies).

It should be noted that the downward macroeconomic scenarios due to the COVID-19 effect did not have significant impacts on the credit quality of the counterparties.

Risk Measurement

The Enel Chile Group prepares a Value at Risk measurement for its own debt positions and financial derivatives, with the purpose of monitoring the risk taken on by the company, thus circumscribing Income Statement volatility.

The portfolio of the positions included for the purposes of calculating the present Value at Risk, is comprised of:

The calculated Value at Risk represents the possible value variation of the above-described positions portfolio within a quarter and with 95% certainty. To that effect, we have studied the volatility of the risk variables that affect the value of the positions portfolio in relation to the Chilean peso which includes:

The Value at Risk calculation is based on the extrapolation of future market value scenarios (one quarter out) of the risk variables based on real observations for the same period (quarter) through a 5-year period.

The Value at Risk for the next quarter, with 95% confidence level, is calculated as the percentile of the most adverse 5% of the possible quarterly changes.

Considering the assumptions described above, the Value at Risk at one quarter out of the foregoing positions corresponds to Ch$ 389,336 million.

This value represents the potential increase of the debt and derivatives portfolio, therefore this value at Risk is intrinsically related, amongst other factors, with the value of the portfolio at the end of each quarter.

OTHER RISKS

As is common practice in bank credit facilities and capital market operations, a portion of our financial debt, is subject to cross-default provisions. If certain non-payments are not corrected, they could result in a cross-default and eventually certain liabilities of Enel Generación Chile, EGP Chile or Enel Chile could become enforceable, as appropriate.

In connection with the credit line under New York State law, subscribed in June 2019 and maturing in June 2024, prepayment may occur as a result of the non-payment -after any applicable grace period- of any other debt of Enel Chile whose individual outstanding principal amount exceeds the equivalent of US$150 million and whose amount in default also exceeds the equivalent of US$150 million. In addition, this credit line contains provisions under which certain events other than non-payment, such as Enel Chile's bankruptcy, insolvency, adverse enforceable court judgments in excess of US$300 million, among others, could lead to the acceleration of this debt.

Additionally, non-payment – after any applicable grace period – for any debt of Enel Chile or any of its subsidiaries, with a principal amount that exceeds US$ 150 million, or its equivalent in other currencies, could lead to the mandatory advance payment of its Yankee bonds. The acceleration of the debt due to cross default does not occur automatically, but must be demanded by the holders of at least 25% of the bonds of a certain Yankee Bonds series.

There are no credit-agreement clauses stating that changes in the corporate or debt rating of Enel Chile or its subsidiaries’ debt, performed by credit-rating agencies, would result in the need to make prepayments of debt.

III. BOOK VALUE AND ECONOMIC VALUE OF ASSETS

The following are the most important assets:

Property, plant, and equipment are valued at their acquisition cost, net of the corresponding accumulated depreciation, and impairment losses. The property, plant, and equipment, net of their residual value, depreciate by distributing the cost of their different components linearly over the years of the estimated useful life of the asset, which is the period in which the companies expect to use them. The estimated useful life of the asset is revised periodically.

Goodwill (lower value of investments or commercial funds) generated in the consolidation, represents the excess acquisition cost over the Group’s participation in the fair value of assets and liabilities, including contingent liabilities and any non-controlling, identifiable shareholdings in a subsidiary, as of the date of acquisition. Goodwill is not amortized, but at the end of each accounting period an estimation of any impairment that might reduce its recoverable value to an amount below the recorded net cost is calculated, in which case an adjustment is made for the impairment. For additional information see Note 3.e. of the Financial Statements as of June 30, 2021.

Throughout the year and, primarily at its closing date, an evaluation is carried out to determine whether any asset might have suffered an impairment loss. In the event that there is an indication of such loss, an estimate of the recoverable value of such asset is made to determine the amount of the impairment. In the case of identifiable assets that do not generate cash flows independently, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs, which is considered to be the smallest group of assets that generate cash inflows independently.

Assets denominated in foreign currencies are presented at the exchange rate prevailing at the end of the period.

Accounts and notes receivable from related companies are classified according to their maturity in short-term and long-term. Transactions are adjusted to conditions prevailing in the market.

In summary, asset values are determined according to the International Financial Reporting Standards, whose criteria are included in Notes No. 2 and 3 of the Financial Statements of Enel Chile as of June 30, 2021.

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: July 27, 2021