16th Santander May

Latam Conference in London

14-15 May, 2018

Entel Chile_
 TABLE
OF CON_
TENTS
Entel and the telecom market

Company overview
Entel Peru
Financial overview

Notes
Financial figures reported under IFRS standards.
Value in US$, exchange rate as of March 2018: $603.39

Entel Group_
 Entel
and the
telecom
market_

Entel Group_ 3
 Market highlights_
CHILEAN TELECOM MARKET YEAR 2017 PERUVIAN TELECOM MARKET YEAR 2017
Com SME &
Corp.
FBB Pay TV
6%
10% 10%

Local Fixed
Telephony & telephony US$ 4.4 bn
IP Voice US$ 9.4 bn Mobile 7% Mobile
9% 51% -1,0% vs 2016 70%
+4,0% vs 2016
Fixed
IT Services Broadband
10% & IT Services
13%
Pay TV
14%

IT Services includes: O/S and data center services.

Source: SVS Filings, Market estimates Entel. Source: OSIPTEL, Market estimates Entel.

REAL GDP - annual variation in % FOREING DIRECT INVESTMENT AS % GDP (2017)

4,9% 4,9% 4,9%
4,6%
4,4%
Chile Peru Latam
4,2% 4,0%
3,9%
3,2%
2,9% 2,7%
2,5% 2,5%
1,6% 1,5% 1,6% 1,3%
1,1%

Chile Uruguay* Colombia Brazil Peru* Mexico Argentina*

*: Data as of 2017
-1,0%

2016 2017 2018E 2019E

Source: Fitch, Moody’s, S&P, Bloomberg, International Monetary Fund, The Economist Intelligence Unit, World Bank

Entel Group_ 4
 Telecom Market_ growth opportunities

Gigabytes per month Internet of Things

(per mobile user)* Heterogeneous ecosystem

CHILE Connected
Smart Health
Manufacturing
8.8x
Coverage
7,1 High security
Remote places Helath/Goverment/ etc
Low energy High trust
requierement
99.999 %
10+ years of battery

0,8 Low complexity Massive

1 message per month number of Critical
2015 2020E
things Services
Low latency

PERU Low as a 1 ms
High density
50 billion wearables High mobility
8.3x Superior Or without movility

Broadband
5,8 High Capacity
4K UHD Video, Virtual
reality
Consistent
network
Higher speeds
Discover and adapt Connected Cars
0,7 Smart Homes
2015 2020E Smart Cities

The wide array of devices, and industrial applications, are demanding wireless networks with
different requirements over the same technical infrastructure.
Source: Cisco VNI 2017, eMarketer mobile research
Entel Group_ 5
 Company
over_view

Entel Group

Entel Group_ 6
 Entel is one of the largest publicly listed companies in Chile_
ENTEL SHAREHOLDER STRUCTURE / As of March 2018

Listed on Santiago Stock Exchange, shares part of IPSA Index.

27,9% Market Capitalization (2): US$ 3,434 MM.
Average Daily Volume (3): US$ 2.7 MM.

54,9%

17,2%

(1): Altel is a wholly-owned subsidiary of Almendral (Holding Company) and its main
controllers are Matte, Fernandez/Hurtado, Consorcio, Izquierdo and Gianoli Economic Groups.
(2): Exchange rate 603.39 CLP/US$. Stock price as of May 9 2018.
(3): Average from April 2016 to March 2018.
Altel Inversiones Ltda Pension Funds All Others

Strong and supportive controlling group_

Entel is controlled through Almendral, by a group of successful local business conglomerates.
The Board has solid experience and knowledge of the company and industry.
Sound corporate governance standards:
Board of Directors consisting of 9 members, with two independent member.
Directors Committee consisting of 3 members.
Management team with vast experience in the telecom industry.
For second consecutive year Entel is part of the Dow Jones Sustainability Chile Index and in the new Dow Jones Sustainability MILA
Pacific Alliance Index..
Entel Group_ 7
 Entel Group_15,5 million mobile clients with a wide range of services in
Chile and Peru

Total 2017 Revenue (*): USD 3,240 MM

Total 2017 EBITDA: USD 724 MM

CHILE MOBILE CHILE FIXED LINE AMP & Call Center ENTEL PERU
54% of revenues 21% of revenues 2% of revenues 23% of revenues
USD 1,740 MM USD 682 MM USD 61 MM USD 757 MM

Leader in integrated services of

9.0 million subscribers voice, data and internet for Integrated offering in the SME 6.9 million subscribers
business clients segment within Lima
Service revenue share: 37% Significant growth potential
Top of mind: 39% Corp. revenue share: 63% Synergies with the Peruvian
Top position among high value SME revenue share: 22% mobile business Extensive 4G network
customers
Nationwide coverage through Call center operates aligned Spectrum: 259 + 30MHz in the 700
Spectrum: 250 MHz with multiple technologies with Entel’s strategy of band
nationwide coverage providing top quality customer
Largest data center infrastructure service 3.582 POPs
6,463 POPs provider

Selective triple-play solution

through “Entel Hogar”
(*) Revenues includes: Total Revenue + Other revenues + Other income (loss).

Leading provider of a wide range of integrated solutions for telecommunications and IT outsourced services.

Leadership position in the main markets where the Company participates, based on solid infrastructure, service quality, client service and
innovation.

Leading brand with loyal customers.

Entel Perú continued developing its attractive value proposition, backed by increased brand awareness, higher distribution channel
capilarity and growing world-class network coverage with high levels of customer satisfaction.
Source: Operational data Entel December 2017.
Entel Group_ 8
 Entel “Snapshot”_
Mobile Total Revenue Mobile Data
Subscribers Share Penetration
Mobile Service Revenue Data Plans over
15.5 million Share: 38,6%
Postpaid base 93%
(Average 2017)

CHILE DATA PLANS

15.540
(% over postpaid base)
14.323
12.900 • Entel Mobile Chile: 93%
• Revenue Share Serv: 39%
3.129
4.809 6.543 • Market Share: ~33% 87%
778
• TOM: 39%
738 705 • Brand Pref.: 41% 79%
3.002 3.073
3.314

• Leader in high-value clients,

5.991 5.703 66%
4.978 reflected in:
• ARPU +11% Gap (*)
2015 2016 2017 55%
PP SS MBB Peru • Fixed services:
• SME Rev. Share: ~22%.
• Corporate Rev. Share: ~63%
42%
• Corp Satisfaction Gap: +44pp

• Growth in high value customers

in Peru and Chile. Source: Internal Data, Figures as of december 2017
(*)Arpu Gap Calculated as the weighted average Arpu

Entel Chile_ 9
 Entel “Snapshot”_
CAPEX 2017 Spectrum Infrastructure
Chile: 250MHz Chile: 6,463 POPs
US$ 598 MM Peru: 289MHz Peru: 3,362 POPs

CAPEX/Revenue Chile(1) 2012 2017 2012 2017

Total: 19.8% +38%

6.463

4.676 +4x
Hogar
1.2 pp 2012 2017 3.362
(Chile + Peru)
180 MHz 250 MHz
805

4G Mandatory 1.5 pp Chile Peru

Peru(2)
• Inbuilding coverage deployed
Chile: 9,5 MM m2

TDE 2.6 pp • Data Center M2 :

Chile: 8,500 Peru: 750
2012 2017
241.4 MHz 288.6 MHz
Regular CAPEX 14.5 pp

Source: Internal Data. *: Figures as of December 2017

(1) & (2): Spectrum includes 3.500 band & others.

Entel Chile_ 10
 Entel has a leading position in the chilean telecommunications market…

#1 COMPANY IN THE MOBILE MARKET (AS OF DECEMBER 2017*) 2017 REVENUE DISTRIBUTION BY SERVICES
Others
11,9%

Entel 1%
1%
33,2% 1% 1% 3%
Company B Chile
23,0% 4%

12%

Company A
31,9% 54%
Others: Virgin, VTR Mobile, WOM. Average Market Share of Active Clients.
Source: SVS Filings, Market estimates Entel.
MBB & M2M included. 23%
GROWING POSITION IN TERMS OF REVENUES (US$ MILLION)
800
700 658 Chile Mobile
612 632 623 628 Peru Mobile
608
600 Data Services including IT & Internet
612 595 590 Hogar
546 568 594
500 Local Telephony
Long Distance
400 357 Service to other operators & Traffic business
309 291 291 294 Americatel Perú
300 274 Call Center & Others

200
100
2017 Total Revenue(*) = US$ 3,240 MM

Entel (Chile) Company B Company C

Includes mobile and fixed line businesses for each company, as reported in publicly available press (*) Revenues includes:
releases from each company. ENTEL excludes Peru revenues. Total Revenue + Other revenues + Other income (loss).

Entel Group_ 11
 …based on a strong brand, service quality, customer service…
For 14 consecutive years, has been
ranked first place in mobile services TOP OF MIND
customer satisfaction index.

“Best Consumer Experience” BCX award

in the telecommunications category.6th
consecutive year in Chile and 5th year in
39%
LATAM.
30%
Strong partnerships allows Entel to 20%
be in the commercial and
technological world class standards 11%
while maintaining a local perspective. ENTEL COMPANY B COMPANY C COMPANY D

Source: Monthly tracking by Kronos Chile March 2018

Source: Kronos Chile

Entel Group_ 12
 …state-of-the-art network and infrastructure…

Arica

Iquique

mobile_ Antofagasta

network Copiapó fiber optic

20 MHz in 900 MHz band
60 MHz in 1,900 MHz band
40 MHz in 2,600 MHz band La Serena
transport
30 MHz in 700 MHz band
100 MHz in 3,500 MHz band Vaparaíso

Rancagua
Santiago
network
6,463 POP Talca FIBER OPTIC TRANSPORT NETWORK
Concepción 3,950 Km.

2G RBS: 5,203+ Temuco AGREGATION NETWORK (FO & MW)

3G RBS: 7,101+ Valdivia Over 12,000 km.
LTE RBS: 3,042+ 6,000 MW links.
Puerto Montt

INTERNATIONAL NETWORK CONNECTIVITY

VIA GLOBAL CONSORTIUMS

Coyhaique

Punta Arenas

POP as of september 2017

Entel Group_ 13
 ... with nationwide coverage _
Arica

Iquique

fixed Antofagasta

access Copiapó

network
La Serena

IP / MPLS ACCESS NETWORK

Vaparaíso
Santiago
XDSL ACCESS NETWORK Rancagua

Talca
THE LARGEST DATA CENTER INFRASTRUCTURE
GPON ACCESS NETWORK PROVIDER
Concepción

NGN ACCESS Temuco

• More than 8,500 m2 in 8 interconnected data center
Valdivia
NATION WIDE capacity for over location.
350,000 lines of service. Puerto Montt

• Second stage datacenter in Ciudad de los Valles,

increasing its presence to reach 3,000 m2.
Coyhaique
• Ciudad de los Valles Datacenter: First in Chile to be
certified as “Sustainable Operation GOLD” and Tier III
Certification (for design, implementation and operation)
by the Uptime Institute.

Punta Arenas

Entel Group_ 14
 Entel is committed to Sustainability_
We are responsible for the
environment in which our
business develops, which we
not only understand as the
environment but extending to
the community, investors,
businesses, the state and all
stakeholders with which we are
bound and committed.
.
…In order to ensure long
term sustainability,
contributing to the
development and
welfare of society.
Annual Sustainability
Report prepared under
the Global Reporting
Initiative (GRI).
Entel Group_
We develop social
projects in order to
help responsibly
transform society by
better connectivity.
We seek to increase
digital knowledge,
equal opportunities
and connectivity for
all…
Entel is member of DJSI MILA, the first sustainability index for
the Latam-Pacific market ,which was designed to measure the
performance of the most sustainable companies in the Pacific-
Alliance region.
15
 Our value proposition

Deliver a simple and unique service experience

Leaders in network and service innovation

Entel Group_ 16
 Business focus_

Revenue Growth.
Entel Perú; in Chile in Data & IT in SME and Corporate; Entel Hogar .

Keep revenue share in mature markets.

Develop digital businesses models.

Cash generation.

CAPEX/OPEX efficiency in mature markets.

Key enablers : Human Resources – Digital transformation – Brand –

competitive edge in infrastructure.
.

Entel Group_ 17
 Business_
segments
Our organization and
business approach

Entel Group_ 18
 Mobile Services and Consumer Chile Segment_ Top position among high
value clients
MOBILE SERVICES CONSUMER SEGMENT

60 MHz in the 1,900 MHz band, 40 MHz in the 2,600 Leader in high value segments, with an extensive offering for
band, 20 MHz in the 900 band and 30 MHz in 700 band mobile data and voice services.
and 100 MHz in the 3500 band, all with nationwide
coverage.
Deliver and attractive, innovative, simple and transparent data
Extensive 4G+ LTE Advanced, with nationwide service offering..
coverage.
Network infrastructure development and capabilities
enhanced a robust commercial offer, including STRATEGIC FOCUS
unlimited data plans.
Provide first-class service experiences with improvements on
High level of competition and tariffs dynamism. digital experience.
New business models to efficiently capture customer flow from
ENTEL’S MOBILE CLIENT BASE (IN THOUSANDS)
prepaid to postpaid, maintaining tariff innovation and agility.
Cagr 15/17
Improvements in cost structure enable data offering
-6% enhancements.
-1%
9.771 9.514 9.399 9.272 Leveraging on competitive network advantages
778 738 8.997
705 719 714
Growth opportunities in the home market: Address selective
2% 3.073 8%
3.002 3.314 3.107
11% 3.448 segments of the residential market with a competitive triple-play
solution, based on convergence of fixed & mobile technology.
Deployment of 3.5GHz band opens opportunities in the
5.991 5.703 5.573 residential segment, with higher speeds and service stability.
4.978 5.111

2015 2016 2017 1Q17 1Q18

Prepaid Chile Postpaid Chile MBB Chile

Customers base as of end of period. (*) MBB: mobile broadband

Entel Group_ 19
 Growing position across all services in the Corporate & SME in Chile_

CORPORATE & SME SEGMENT Ciudad de los Valles data center is

Integrated offerings including IT / telco; fixed & mobile connected to a network of eight data
convergence; bundling of solutions over IP networks.
centers
Innovative, integral and convergent offerings that allow clients
to efficiently manage business processes and connectivity at
Cloud Computing Services
any time / any place.
Software-as-a-service
Current strength in telecom and IT outsourcing services is an
On- demand solutions
important advantage for generating business
complementation through digital services Dedicated virtual servers
On-demand hosting and storage services
Consolidation of on-demand IT services for smaller enterprises
in the wireline services.

STRATEGIC FOCUS
Undertake fixed, mobile and IT services cross-selling with a
convergent and bundled offering.

Focus on fostering digital businesses (IoT, cloud, cyber security

and data analytics).

Continue leading the Telco market (integrating voice, data and

Internet).

Expand coverage and capacity through the development of

fiber optic access networks (GPON).

Provide network infrastructure to other telecommunication

providers, including MVNOs and roaming services.

Entel Group_ 20
 Americatel Perú_Focus in SME segment in Lima

GENERAL VISION STRATEGIC FOCUS

Provide fixed services via an integrated offering
(voice, data, Internet services) in the enterprise
segment within the Lima Area over the expansion
of fiber optics networks.
Developing IT services.
Increasing services on own networks in Lima and IT
(LTE and fiber).
Pursue growth opportunities aligned with Entel’s
capabilities.
Synergy with the mobile business in Peru.

REVENUES (US$ MILLIONS) REVENUE DISTRIBUTION 2017

-5%
44
LD
39,9 39,3 Cagr 15/17 7%

Wholesale
8%

-19%
9,3 IT
7,5 10%
21% 16% 12%

Voice, Data
2015 2016 2017 1Q17 1Q18 & Internet
75%

Entel Group_ 21
 Chile: continued to be challenging in a highly competitive market_
(US$ Million) Cagr 15/17

Var. 3M18/3M17
-2% Var. 3M18 Pro forma/3M17

REVENUES
2.585 2.550 2.500
-5% -4%

626 595 600

2015 2016* 2017 3M17 3M18 3M18 Pro Forma

-1%

EBITDA AND
EBITDA MARGIN 871 887 850
222 -14% 191 -13% 193
34% 35% 34%
35,4% 32,2% 32,1%

2015 2016* 2017 3M17 3M18 3M18 Pro Forma

-8%

OPERATING
INCOME
465 446 392 -32% -31%

108 73 74
2015 2016* 2017 3M17 3M18 3M18 Pro Forma

(*) excludes one-time effect for US$ 19 millions Chile includes Americatel & Call Centers.

Entel Group_ 22
 Entel
Perú_
Entel Group_ 23
 Entel Peru : Main milestones
GROWTH

2017
2016 #1 Latam
BCX:
Best
Customer
PREPARATION
2015 Ookla:
Network
4G Experience

2014 1st place in

cataloged as the
fastest
Great Place to Work:
8th place in Peru
Portability
Launching of the 4G LTE network 700 MHz ≈22% Revenue
4G LTE in all 24 regions of
band award by Share
Peru
network in 14 $290MM.
regions Entel Brand: 1st in 6.5 million
Launching of Preference Unlimited customers

2013 Entel Peru

as a brand
(Postpaid Nov 2015)

3 million
Social networks
3000
More than
“the signal you customers anthenas
were waiting for”
Acquisition of (“La señal que
Nextel Peru estabas esperando”)

24
Entel Group_
 Entel has consolidated a solid brand in Peru_
POSITIVE RESPONSE IN THE MARKET

Entel Perú commitment to service excellence was recognized, by the

BCX award for best customer experience in the telecommunication
category.

Entel Perú was recognized, for the second consecutive year, in the
Corporate Reputation Ranking, made by MERCO. The company was
ranked as the best in the telecommunication sector.

HIGH SATISFACTION IN THE POSTPAID MOBILE SECTOR

74%
67% 65% Entel
60% Company B
56% 54% 52% 52% Company C

38% 38% 39%

32%

Recommendation Transparency Internet Coverage

Source: GFK Peru January – March 2018

Entel Group_ 25
 Development of a “State of the Art“ network for 2G/3G/4G Voice and
Data services focus on connectivity and experience…

mobile_ Iquitos

network Talara

Piura
Cajamarca

Trujillo

Huaraz

Puerto

+3,582 POP LIMA

Maldonado

Ica Cusco

Puno
Arequipa

Tacna

Extensive 4G network in Peru_

POP as of March 2018

Entel Group_ 26
 …that has led to strong performance of key indicators
STRATEGIC FOCUS
MARKET STRATEGIC FOCUS ON QUALITY OF SERVICE
Attractive value proposition. AND DISRUPTION

Brand awareness at high levels.

Continued strengthening its technical capabilities by expanding the

network, the most modern and with the best 4G experience.

Consolidation of a clear and transparent offering (including voice

and data) has fostered the growth in the postpaid and prepaid
client base. Continued growing capillarity in distribution channels
to enlarge the scope along the country.

Selectively entering to the residential segment in fixed line.

Wide array of spectrum provide long term competitive edge.

TOTAL CUSTOMER BASE DISTRIBUTION (in thousands) MOBILE CLIENT BASE MIX (in thousands)
7.014
6.681
6.314 6.862
152 6.543
5.854 138 6.194
121 33%

Postpaid
5.187 95
5.759
4.838 2.288
65 5.121 2.254
29 4.809 2.190
2.037
1.945
1.853
6.543 6.862
5.759 6.194 67%

Prepaid
4.809 5.121 4.574
4.004 4.289
3.722
2.956 3.176

4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
Mobile Fixed Wireless Prepaid Postpaid

Entel Group_ 27
 Entel Perú has shown strong revenue growth …with an EBITDA with
ample room for improvements_ (US$ Million) Cagr 15/17
Individuals statements
733 Var. 3M18/3M17
41%
Var. 3M18 Pro forma /3M17
553

371
REVENUES
184 201
163 13% 23%

2015 2016 2017 3M17 3M18 3M18 Pro Forma

2015 2016 2017 3M17 3M18 3M18 Pro Forma

-15% -4%
-23% -8
-16% -27 78%
-34% -37 27%
EBITDA AND -69%
EBITDA MARGIN -118

-188
32%
-255

2015 2016 2017 3M17 3M18 3M18 Pro Forma

-26
-52 14% -45 50%

OPERATING
INCOME -185

-256
-301 22%

Exchange rate: 3.223 SOL/US$

Entel Group_ 29
 Summary of the Entel Perú_ challenges
• Consolidate Entel's position in Peru.

• Continue with “Entel” Brand development: consideration / preference

and top client experience.

• Continue capturing market:

• Growing revenue share.

• Portability, Telemarketing, Up Selling, mobile data leadership.

• Deploy BAFI 2300 MHz in Lima for residential services

• New offers & Data evolution.

• Regions Network selective Expansion.

• Efficiency initiatives:

• Digital transformation, Domestic transport and mobile termination rate reduction.

Entel Group_ 30
 Financial
over_view
Results and investment

Entel Group_
 Evolution reflect Entel Perú growth_
Cagr 15/17
Var. 3M18/3M17
CONSOLIDATED FIGURES (US$ Million) Var. 3M18 pro forma/3M17

REVENUES (*) EBITDA AND EBITDA MARGIN

4%

3.240 11%
2.971 3.128

704 724
591

-3% 0% -10% 1%
182 185
791 768 22,5% 22,4% 165
790 19,9%
23,1% 21,4% 23,4%
2015 2016 2017 3M17 3M18 3M18 Pro 2015 2016 2017 3M17 3M18 3M18 Pro
Forma Forma

RESULTS FROM OPERATING ACTIVITIES

NET INCOME

20%
-46% -7% 13% -40%
190 195 48
134 52 28 72 23 14
-2 57 0
2015 2016 2017 3M17 3M18 3M18 Pro 2015 2016 2017 3M17 3M18 3M18 Pro
Forma Forma

(*) Revenues includes: Total Revenue + Other revenues + Other income (loss).

Entel Group_ 32
 Investment plan driven by expansion of mobile services, Data/IT and digital
transformation_
CAPEX STRATEGY CAPEX BREAKDOWN AS OF DECEMBER 2017
Historical capex investments supportive of future revenue growth.
Others
Capex mostly driven by demand in Chile. 10% Entel Hogar
Entel Perú 6%
TDE
Bulk of network and spectrum investment already done allows to expand a top 16%
13% Chile Mandatory
quality and cost effective infrastructure over time aligned with the growth
Projects
perspectives of the Company.
8%
Focused on maintaining leading technology and service quality in mobile
services, to absorb evolution of mobile data.
Data / IT
Deploying home services network in Chile and Peru. 19% Chile Mobile
28%
Moving towards a full digital lean organization comprehensive digital
TOTAL = US$ 598
transformation program.
MILLION

historical 656
539
598

Capex_ 29%
24%
EXCLUDING
19,8%
AWS BAND IN PERU
(US$ Million)

2015 2016 2017

Capex / Revenues

2015: Entel Perú, Entel Hogar & Chile Mandatory Projects represents 11.0 p.p. of the Capex /Revenues
2016: Chile Mandatory Projects represents 3.3 p.p. of the Capex/Revenue
2017: Entel Perú: Entel Hogar & Chile mandatory projects represent 2,7 pp of the Capex/Revenues
.
Entel Group_ 33
 Cash flow reflects the expansion in the mobile business in Peru_

Cash_
flow 16 1

-41 -19
-225
(US$ Million) -340

Cash Flow is defined as:

+ EBITDA
- Capex 2015 2016 2017 3M17 3M18 3M18 Pro
- Net financial expenses Forma

During July 2016 Entel Peru was awarded a block of 30 MHz in the 700 MHz band, impacting cash flow in
US$ 290.2 million

Entel Group_ 34
 Liquidity and debt ratios trends reflects the expansion in Peru_

March 2018 Pro

2015 2016 2017 March 2018
Forma

Liquidity Ratio (Current assets / Current liabilities) 1,19 1,33 1,19 1,44
EBITDA/Net Financial expenses (LTM)* (>2.5) 6,63 2016
6,05 2017 5,88
6,46 3M18 6,04
Net Debt/ EBITDA (LTM)* (<4.0) 3,56 3,23 3,30 3,70 3,60
Total liabilities /(Equity+ non controlling interest) 2,42 1,76 1,85 1,75
Net financial debt (US$ Million) 2.101 2.277 2.392 2.614
Net financial Expenses (US$ Million) 97 126 124 34

Fully hedged to F/X exposure.

74% of debt is at fixed rate.
Fitch rating: BBB- (stable), S&P rating: BBB- (stable), Moody´s rating: Baa3 .
Dividend policy: Up to 50% of Net Income.

*EBITDA & Net Financial expenses last 12 months, according to Local Bond covenants.

Entel Group_ 35
 Entel keeps a comfortable debt maturity profile.

Debt maturity profile as of March 2018

Figures in US$ Million
Jun-13
651
International Loans Local Loans
113
Local Bond 2014 Bond 144A 2014

205 Bond 144A 2013 Others

400 400
154 333 333 333 314
113
2 3
0 41

Total Gross Debt = US$ 2,589 million as of March, 2018.

Entel Group_ 36
 Recent Events_
The Annual Shareholders’ Meeting held on April 26, 2018. Main agreements were:
A total dividend of Ch$ 44 per share was approved related to 2017 profits; totaling
Ch$ 13,292 million. The payment will be made on May 23, 2018.
Jun-13
The financing policy for 2018 was approved (no changes), which considers the maximum level of
debt, resulting from the highest value between;
Net Financial Debt / Equity <=1.7x or
Net Financial Debt / LTM EBITDA <= 3.5x

E&Y was maintained as external auditors for 2018.

During March 2018 both Fitch and Satandard & Poors downgraded Entel credit rating from “BBB” to
“BBB-” with “Stable Outlook”.

The application of IFRS15, impacts the accounting of revenues and costs, affecting EBITDA
calculation. As per the existing loan agreements, the threshold of financial covenants (Net
Financial Debt/ EBITDA and EBITDA /Net Interest Expenses) must be adjusted to the new
accounting rule.

Entel Group_ 37
 thank you ;)
cdelacerda@entel.cl
Costanera Sur 2760 • Las Condes
Santiago • Chile

Visit our website www.entel.cl

Entel Group_