32.	INFORMATION BY SEGMENT

32.1 Basis of segmentation

The Group’s activities operate under a matrix management structure with dual and cross management responsibilities (based on businesses), and its subsidiaries are engaged in either the Generation Business or the Distribution Business.

The Group adopted a “bottom-up” approach to determine its reportable segments. The Generation and the Distribution reportable segments have been defined based on IFRS 8.9 and on the criteria described in IFRS 8.12.

Generation Business: The Generation Reportable Segment is comprised of a group of electricity companies that own electricity generating plants, whose energy is transmitted and distributed to end customers.

The Generation Business is conducted by our subsidiaries Enel Generación Chile S.A., Empresa Eléctrica Pehuenche S.A. and GasAtacama Chile S.A..

Distribution Business: The Distribution Reportable Segment is comprised of a group of electricity companies operating under a public utility concession, with service obligations and regulated tariffs for supplying regulated customers.

The Distribution Business is conducted by our subsidiary Enel Distribución Chile S.A. and its subsidiaries.

Each of the operating segments generates separate financial information, which is aggregated into one combined set of information for the Generation Business, and another set of combined information for the Distribution Business at the reportable segment level. In addition, in order to assist the decision maker process, the Planning & Control Department at the Parent Company level prepares internal reports containing combined information at the reportable segment level about the main key performance indicators (KPIs), such as: EBITDA, Gross Margin, Total Capex, Total Opex, Net income, Total Energy Generation, among others. The presentation of information under this business approach has been made taking into consideration that the KPIs are similar and comparable in all segments, in each of the following aspects:

(a)

the nature of the activities: Generation on one hand, and Distribution on the other;

(b)

the nature of the production processes: the Generation Business deals with the generation of electricity, while the Distribution Business does not generate electricity, but distributes electricity to end customers;

(c)

the type or class of customer for their products and services: the Generation Business provides services mainly to unregulated customers, while the Distribution Business provides energy to regulated customers;

(d)

the methods used to distribute their products or provide their services: generators generally sell the energy through energy auctions, while distributors provide energy in their concession area; and

(e)

the nature of the regulatory environment (public utilities): the regulatory frameworks differs in the Generation Business and Distribution Business

The Company’s chief operating decision maker (CODM) in conjunction with the Chile manager reviews on a monthly basis these internal reports and uses the KPI information to make decisions on the allocation of resources and the assessment of the performance of the operating segments for each reportable segment.

The information disclosed in the following tables is based on the financial information of the companies forming each segment. The accounting policies used to determine the segment information are the same as those used in the preparation of the Group’s consolidated financial statements.

The following tables present details of this information by segment:

32.2 Generation, distribution and others

Line of Business	Generation				Distribution				Holdings, eliminations and others						Total
	12-31-2017		12-31-2016		12-31-2017		12-31-2016		12-31-2017			12-31-2016			12-31-2017		12-31-2016
ASSETS	ThCh$		ThCh$		ThCh$		ThCh$		ThCh$			ThCh$			ThCh$		ThCh$
CURRENT ASSETS		662,804,360		543,372,955		261,378,069		245,122,733		135,159,356			78,031,249			1,059,341,785		866,526,937
Cash and cash equivalents		211,027,141		114,486,479		42,594,390		23,378,615		165,834,495			108,134,098			419,456,026		245,999,192
Other current financial assets		20,523,276		487,106		61,887		47,517		41,899			49,621			20,627,062		584,244
Other current non-financial assets		2,167,272		4,409,288		3,434,462		11,091,061		400,408			331,137			6,002,142		15,831,486
Trade and other current receivables		218,178,007		260,440,086		197,011,114		180,290,279		4,563,165			4,341,491			419,752,286		445,071,856
Current accounts receivable from related companies		109,797,820		82,727,781		6,305,806		8,895,440		(44,247,580	)		(38,764,837	)		71,856,046		52,858,384
Inventories		31,740,903		33,390,799		3,049,576		1,878,072		4,896,463			2,270,725			39,686,942		37,539,596
Current tax assets		65,164,708		34,438,408		8,920,834		19,541,749		3,670,506			1,669,014			77,756,048		55,649,171
Non-current assets classified as held for sale		4,205,233		12,993,008		—		—		—			—			4,205,233		12,993,008

NON-CURRENT ASSETS		2,891,657,830		2,856,309,537		893,633,579		829,203,115		850,139,814			846,671,423			4,635,431,223		4,532,184,075
Other non-current financial assets		33,391,398		28,802,569		26,806		24,973		—			—			33,418,204		28,827,542
Other non-current non-financial assets		12,853,460		12,318,444		959,679		1,019,050		—			(1,342	)		13,813,139		13,336,152
Trade and other non-current receivables		1,032,922		6,788,437		34,272,234		24,978,209		877,243			1,733,459			36,182,399		33,500,105
Investments accounted for using the equity method		12,707,221		18,738,198		—		60,325		—			(60,325	)		12,707,221		18,738,198
Intangible assets other than goodwill		18,607,972		19,266,874		34,236,891		25,430,420		2,326,041			(226,544	)		55,170,904		44,470,750
Goodwill		24,860,356		24,860,356		2,240,478		2,240,478		860,156,821			860,156,821			887,257,655		887,257,655
Property, plant and equipment		2,788,204,501		2,726,838,536		821,234,672		774,999,730		(23,752,036	)		(25,709,632	)		3,585,687,137		3,476,128,634
Investment property		—		—		—		—		8,356,772			8,128,522			8,356,772		8,128,522
Deferred tax assets		—		18,696,123		662,819		449,930		2,174,973			2,650,464			2,837,792		21,796,517

TOTAL ASSETS		3,554,462,190		3,399,682,492		1,155,011,648		1,074,325,848		985,299,170			924,702,672			5,694,773,008		5,398,711,012

Line of Business	Generation						Distribution						Holdings, eliminations and others						Total
	12-31-2017			12-31-2016			12-31-2017			12-31-2016			12-31-2017			12-31-2016			12-31-2017			12-31-2016
LIABILITIES AND EQUITY	ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$
CURRENT LIABILITIES		543,356,500			555,777,465			408,687,871			259,684,837			(135,227,725	)		(58,215,655	)		816,816,646			757,246,647
Other current financial liabilities		18,815,434			25,696,064			14			102			—			—			18,815,448			25,696,166
Trade and other current payables		329,448,226			341,088,664			189,458,076			151,549,875			75,592,304			68,866,744			594,498,606			561,505,283
Current accounts payable to related companies		122,862,944			121,018,039			207,909,593			96,520,909			(211,159,565	)		(127,110,019	)		119,612,972			90,428,929
Other current provisions		5,296,635			6,493,428			—			104			339,536			—			5,636,171			6,493,532
Current tax liabilities		66,933,261			61,457,940			94,246			113,855			—			27,620			67,027,507			61,599,415
Other current non-financial liabilities		—			23,330			11,225,942			11,499,992			—			—			11,225,942			11,523,322

NON-CURRENT LIABILITIES		1,022,091,736			1,114,144,775			61,965,918			106,283,505			6,937,051			(41,957,557	)		1,090,994,705			1,178,470,723
Other non-current financial liabilities		781,978,145			854,016,751			—			—			—			—			781,978,145			854,016,751
Trade and other non-current payables		632,642			1,453,022			27,182			30,091			—			—			659,824			1,483,113
Non-current accounts payable to related companies		318,518			251,527			—			50,000,180			—			(50,000,180	)		318,518			251,527
Other long-term provisions		63,992,567			57,325,914			14,430,270			5,780,994			—			—			78,422,837			63,106,908
Deferred tax liabilities		160,293,916			185,277,004			18,786,185			20,502,853			(6,856,420	)		(6,415,063	)		172,223,681			199,364,794
Non-current provisions for employee benefits		14,875,948			15,820,557			28,412,505			29,655,884			13,793,471			14,457,686			57,081,924			59,934,127
Other non-current non-financial liabilities		—			—			309,776			313,503			—			—			309,776			313,503

EQUITY		1,989,013,954			1,729,760,252			684,357,859			708,357,506			1,113,589,844			1,024,875,884			3,786,961,657			3,462,993,642
Equity attributable to Enel Chile		1,989,013,954			1,729,760,252			684,357,859			708,357,506			1,113,589,844			1,024,875,884			2,983,384,010			2,763,391,288
Issued capital		552,777,321			552,777,321			230,137,980			230,137,980			1,446,193,674			1,446,193,674			2,229,108,975			2,229,108,975
Retained earnings		1,398,018,156			1,199,429,221			769,928,443			794,856,204			(416,341,016	)		(424,910,134	)		1,751,605,583			1,569,375,291
Share Premium		85,511,492			—			354,220			—			(85,865,712	)					—			—
Other reserves		(47,293,015	)		(22,446,290	)		(316,062,784	)		(316,636,678	)		169,602,898			3,592,344			(997,330,548	)		(1,035,092,978	)
Non-controlling interests		—			—			—			—			—			—			803,577,647			699,602,354

Total Liabilities and Equity		3,554,462,190			3,399,682,492			1,155,011,648			1,074,325,848			985,299,170			924,702,672			5,694,773,008			5,398,711,012

The holdings, eliminations and others column corresponds to transactions between companies in different lines of business, primarily purchases and sales of energy and services.

Line of Business	Generation									Distribution									Holdings, eliminations and others									Total
	12-31-2017			12-31-2016			12-31-2015			12-31-2017			12-31-2016			12-31-2015			12-31-2017			12-31-2016			12-31-2015			12-31-2017			12-31-2016			12-31-2015
STATEMENT OF COMPREHENSIVE INCOME	ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$
REVENUES AND OTHER OPERATING INCOME		1,634,937,087			1,659,727,329			1,543,812,461			1,333,027,456			1,315,760,852			1,257,732,165			(438,617,665	)		(433,921,362	)		(402,515,486	)		2,529,346,878			2,541,566,819			2,399,029,140
Revenues		1,599,032,140			1,639,959,816			1,539,991,519			1,328,791,205			1,310,175,226			1,247,900,614			(437,353,167	)		(434,291,162	)		(403,598,944	)		2,490,470,178			2,515,843,880			2,384,293,189
Energy sales		1,457,671,722			1,516,688,442			1,474,818,366			1,186,795,410			1,172,700,558			1,112,912,836			(376,007,978	)		(376,745,382	)		(340,367,445	)		2,268,459,154			2,312,643,618			2,247,363,757
Other sales		94,452,287			64,638,599			24,293,133			12,741,568			8,968,859			7,769,616			168,942			—			(5,225	)		107,362,797			73,607,458			32,057,524
Other services rendered		46,908,131			58,632,775			40,880,020			129,254,227			128,505,809			127,218,162			(61,514,131	)		(57,545,780	)		(63,226,274	)		114,648,227			129,592,804			104,871,908
Other operating income		35,904,947			19,767,513			3,820,942			4,236,251			5,585,626			9,831,551			(1,264,498	)		369,800			1,083,458			38,876,700			25,722,939			14,735,951
RAW MATERIALS AND CONSUMABLES USED		(903,978,006	)		(895,060,114	)		(880,891,222	)		(1,062,076,646	)		(1,042,329,385	)		(983,732,902	)		444,899,135			439,969,919			382,638,565			(1,521,155,517	)		(1,497,419,580	)		(1,481,985,559	)
Energy purchases		(346,954,692	)		(335,731,822	)		(320,731,795	)		(938,067,783	)		(936,965,119	)		(881,589,779	)		382,587,604			380,950,057			342,118,393			(902,434,871	)		(891,746,884	)		(860,203,181	)
Fuel consumption		(280,739,362	)		(295,148,838	)		(327,502,995	)		—			—			—			—			—			—			(280,739,362	)		(295,148,838	)		(327,502,995	)
Transportation expenses		(152,869,838	)		(192,502,995	)		(179,691,471	)		(63,009,956	)		(60,454,433	)		(60,901,746	)		60,000,545			57,834,310			58,140,062			(155,879,249	)		(195,123,118	)		(182,453,155	)
Other miscellaneous supplies and services		(123,414,114	)		(71,676,459	)		(52,964,961	)		(60,998,907	)		(44,909,833	)		(41,241,377	)		2,310,986			1,185,552			(17,619,890	)		(182,102,035	)		(115,400,740	)		(111,826,228	)
CONTRIBUTION MARGIN		730,959,081			764,667,215			662,921,239			270,950,810			273,431,467			273,999,263			6,281,470			6,048,557			(19,876,921	)		1,008,191,361			1,044,147,239			917,043,581
Other work performed by the entity and capitalized		7,226,484			9,758,304			15,250,811			6,630,130			6,338,547			5,753,242			532,373			1			—			14,388,987			16,096,852			21,004,053
Employee benefits expense		(54,222,470	)		(60,350,072	)		(70,969,357	)		(38,449,551	)		(35,557,457	)		(32,454,962	)		(28,831,756	)		(28,190,899	)		(33,130,402	)		(121,503,777	)		(124,098,428	)		(136,554,721	)
Other expenses		(102,821,020	)		(119,303,215	)		(90,327,960	)		(61,942,592	)		(52,077,948	)		(62,182,651	)		2,939,538			612,026			26,653,214			(161,824,074	)		(170,769,137	)		(125,857,397	)
GROSS OPERATING INCOME		581,142,075			594,772,232			516,874,733			177,188,797			192,134,609			185,114,892			(19,078,375	)		(21,530,315	)		(26,354,109	)		739,252,497			765,376,526			675,635,516
Depreciation and amortization expense		(117,337,553	)		(132,600,381	)		(124,835,559	)		(36,685,324	)		(30,399,304	)		(29,082,449	)		1,338,771			1,339,075			716,346			(152,684,106	)		(161,660,610	)		(153,201,662	)
Impairment losses (reversal of impairment losses) recognized in profit or loss		55,494			(30,785,531	)		9,793,653			(7,993,311	)		(5,141,179	)		(6,738,750	)		—			—			—			(7,937,817	)		(35,926,710	)		3,054,903
OPERATING INCOME		463,860,016			431,386,320			401,832,827			132,510,162			156,594,126			149,293,693			(17,739,604	)		(20,191,240	)		(25,637,763	)		578,630,574			567,789,206			525,488,757
FINANCIAL RESULT		(36,610,248	)		(35,678,632	)		(114,252,182	)		6,411,837			8,579,316			12,294,531			7,783,757			6,616,146			4,088,867			(22,414,654	)		(20,483,170	)		(97,868,784	)
Financial income		5,273,672			6,150,751			234,822			12,894,635			14,289,185			13,308,032			3,494,381			2,665,965			1,727,315			21,662,688			23,105,901			15,270,169
Cash and cash equivalents		3,077,708			2,150,797			152,518			1,975,564			1,680,365			634,961			3,323,751			—			1,778,538			8,377,023			3,831,162			2,566,017
Other financial income		2,195,964			3,999,954			82,304			10,919,071			12,608,820			12,673,071			170,630			2,665,965			(51,223	)		13,285,665			19,274,739			12,704,152
Financial costs		(50,851,829	)		(55,701,778	)		(64,206,719	)		(7,094,366	)		(6,488,659	)		(1,801,829	)		4,435,313			3,991,055			(692,150	)		(53,510,882	)		(58,199,382	)		(66,700,698	)
Bank borrowings		(261	)		(2,033,835	)		(129,350	)		(12,299	)		(476	)		(1,659	)		(25	)		—			(494	)		(12,585	)		(2,034,311	)		(131,503	)
Secured and unsecured obligations		(42,708,253	)		(44,268,489	)		(51,697,708	)		—			—			—			—			—			—			(42,708,253	)		(44,268,489	)		(51,697,708	)
Other		(8,143,315	)		(9,399,454	)		(12,379,661	)		(7,082,067	)		(6,488,183	)		(1,800,170	)		4,435,338			3,991,055			(691,656	)		(10,790,044	)		(11,896,582	)		(14,871,487	)
Profit (loss) from indexed assets and liabilities		145,608			606,075			3,600,187			761,262			974,891			973,087			9,796			50,874			265,803			916,666			1,631,840			4,839,077
Foreign currency exchange differences		8,822,301			13,266,320			(53,880,472	)		(149,694	)		(196,101	)		(184,759	)		(155,733	)		(91,748	)		2,787,899			8,516,874			12,978,471			(51,277,332	)
Positive		19,563,838			48,546,664			26,738,738			58,288			609,359			(235,571	)		134,942			65,643			3,930,935			19,757,068			49,221,666			30,434,102
Negative		(10,741,537	)		(35,280,344	)		(80,619,210	)		(207,982	)		(805,460	)		50,812			(290,675	)		(157,391	)		(1,143,036	)		(11,240,194	)		(36,243,195	)		(81,711,434	)
Share of profit of associates accounted for using the equity method		(2,696,904	)		7,878,201			8,905,045			—			1,818			5,248			—			(1,819	)		(5,248	)		(2,696,904	)		7,878,200			8,905,045
Other gains (losses)		113,088,869			121,490,974			4,015,401			157,458			(831	)		14,660,351			(5,131	)		(81	)		1,379,993			113,241,196			121,490,062			20,055,745
Gain (loss) from other investments		105,462,769			121,457,430			4,309,205			4,026			(831	)		—			(5,131	)		(81	)		(346	)		105,461,664			121,456,518			4,308,859
Gain (loss) from the sale of property, plant and equipment		7,626,100			33,544			(293,804	)		153,432			—			14,660,351			—			—			1,380,339			7,779,532			33,544			15,746,886
Income before tax		537,641,733			525,076,863			300,501,091			139,079,457			165,174,429			176,253,823			(9,960,978	)		(13,576,994	)		(20,174,151	)		666,760,212			676,674,298			456,580,763
Income tax		(112,099,519	)		(83,216,935	)		(76,655,819	)		(34,030,322	)		(32,589,362	)		(36,956,051	)		2,787,540			4,403,115			3,999,271			(143,342,301	)		(111,403,182	)		(109,612,599	)
Net income from continuing operations		425,542,214			441,859,928			223,845,272			105,049,135			132,585,067			139,297,772			(7,173,438	)		(9,173,879	)		(16,174,880	)		523,417,911			565,271,116			346,968,164
Net income from discontinued operations		—			—			—			—			—			—			—			—			—			—			—			—
NET INCOME		425,542,214			441,859,928			223,845,272			105,049,135			132,585,067			139,297,772			(7,173,438	)		(9,173,879	)		(16,174,880	)		523,417,911			565,271,116			346,968,164
Net income attributable to:		425,542,214			441,859,928			223,845,272			105,049,135			132,585,067			139,297,772			(7,173,438	)		(9,173,879	)		(16,174,880	)		523,417,911			565,271,116			346,968,164
Shareholders of Enel Chile		—			—			—			—			—			—			—			—			—			349,382,642			384,159,865			251,838,410
Non-controlling interests		—			—			—			—			—			—			—			—			—			174,035,269			181,111,251			95,129,754

Line of Business	Generation									Distribution									Holdings, eliminations and others									Total
	12-31-2017			12-31-2016			12-31-2015			12-31-2017			12-31-2016			12-31-2015			12-31-2017			12-31-2016			12-31-2015			12-31-2017			12-31-2016			12-31-2015
STATEMENT OF CASH FLOWS	ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$			ThCh$
Cash flows from (used in) operating activities		488,157,362			490,177,558			428,211,622			170,628,958			148,354,968			194,756,025			(23,182,620	)		(23,847,670	)		(46,436,120	)		635,613,720			614,684,856			576,531,527
Cash flows from (used in) investing activities		(91,867,647	)		(34,631,759	)		(255,251,615	)		(74,464,531	)		(55,007,620	)		(82,947,418	)		19,886,401			26,150,787			41,457,686			(146,465,777	)		(63,488,592	)		(296,741,347	)
Cash flows from (used in) financing activities		(301,835,211	)		(374,835,378	)		(175,094,207	)		(76,923,085	)		(88,519,047	)		(98,304,569	)		61,162,775			17,487,453			(43,674	)		(317,595,521	)		(445,866,972	)		(273,442,450	)

The holdings, eliminations and others column corresponds to transactions between companies in different lines of business, primarily purchases and sales of energy and services