2016

That with this date and in accordance to what was agreed to by the Board of Directors of the Company, the Company has subscribed a contract with Sencorp S.A in order to sell the real estate located on Avenida Vitacura with Tabancura known as Isla Lo Matta. This real estate which is located in the Vitacura commune (previously Las Condes) was sold for 921,240 Unidades de Fomento. Additionally, the necessary documents have been signed in order to safeguard the sanitation infrastructure that is located in the real estate.

Santiago, December 23 2016

MR.
JUAN C. PONCE HIDALGO
OPERATIONS MANAGER
BOLSA DE COMERCIO DE SANTIAGO

Of our consideration:

In regard to your letter on December 23 which requests us to inform the special circumstances or relevant events that can explain the decline in Aguas Andinas’ shares which occurred on this day, we highlight the following.

1. We understand that the decline in the share price is due to the approval of a Project of law in its first constitutional instance by the Chamber of Deputies which affects the current legislation for public sanitation services, non-regulated services, and the fulfillment of development plans by utility companies.

2. The referred project of law is still in its legislative process, passing onto the second constitutional instance in the Senate.

3. It is important to highlight that the Company trusts that in the upcoming months, both the National Congress and in the Government will focus on deeply analyzing this law initiative which in our opinion suffers from insurmountable repairs from a constitutional, legal and economic point of view in order to safeguard the fundamentals of the model and which allow the industry to continue on the path which has made it an example worldwide.


4. Attached are the Company’s Press Release and the Ministry of Public Works’ Press Release which were both released on December 23, 2016.

With Regards,


Camilo Larraín Sánchez
Aguas Andinas S.A. 

AGUAS ANDINAS'
PRESS RELEASE 

Aguas Andinas: "This Project of Law is a drastic change in the existing legislation and introduces uncertainties."

• The Company trusts that in the following months there will be a more in depth analysis of this initiative in order to safeguard the successes of the existing model and that it will move forward on the path that has led the local sanitation industry to be an example worldwide.
  

Santiago, December 23 2016. Aguas Andinas informed that is it currently analyzing the effects and consequences that the recently introduced Project of Law, Bulletin 10.795-33 will have on the industry. This law which was recently passed by the Chamber of Deputies of the Senate introduces changes to the sanitation legislation.

The Company highlighted that although it has always been open to improvements in the technical aspects of the law, the parliamentary initiative that has been approved implies drastic changes to current legislation introducing great uncertainties in the financing of investments which are necessary in order to ensure that the Company can provide potable water to Chileans in a scenario of water scarcity and climate change.

Aguas Andinas has invested USD$2,500 million since 2000 and has committed investments for USD$830 until 2020. Just in 2015, the Company’s investments reached 95% of the Company’s earnings. Amongst other achievements, five years ago the Company made Santiago the first capital in Latin America to reach 100% of sewage treatment and 100% of coverage in potable water, with one of the lowest tariffs in the OECD countries.

The Company emphasized that all of these investments have been conducted with the participation and support of numerous investors, banks, and Chilean and foreign investments funds who have trusted in the stability of the rules of the game and the seriousness of our country. However, the proposed criteria will prevent the Company from projecting new investments since it will be extremely hard to obtain financing for these works.

In addition to this, the project politicizes the tariff settlement process by making the government determine two out of the three members of the Committee of Experts, with which the authority will now be the judge in a process which, to date, has been known for its technicalities and Independence.

Contrary to the authors of this initiative, the current framework does include that part of the non-regulated revenues be discounted from the tariffs and this has already been done in previous tariff processes.

Aguas Andinas has highlighted that it trusts that in the next months both the National Congress and the Government will focus on conducting a profound analysis of this initiative in order to safeguard the successes of the existing model and that it will move forward on the path that has led the local sanitation industry to be an example worldwide.

 

PRESS RELEASE
MINISTRY OF PUBLIC WORKS

In consultation with market stakeholders in regards to the parliamentary motion which was recently approved in its first legislative instance in the Chamber of Deputies in relation to legislation applicable to public sanitation services (water utilities), Bulletin 10795-33, the Ministry of Public Works highlights the following:

This project is not sponsored by the Government and its origin is a parliamentary motion. The project has positive aspects such as the homologation of the elimination of cut and reposition of service with other industries and the extension of operational territories amongst other matters. However, it changes conditions in the tariff setting process which are deemed inadequate in order to maintain the necessary levels of investment and quality of services for users.

We hope that in the upcoming legislative steps those aspects that have allowed to make investments in our country are maintained as well as those that protect consumers.

In accordance with articles 9º and 10.2 of Law Nº 18.045 of the Superintendence of Securities and Insurance and the General Norm Nº 30 of this institution, through this letter I inform to you as material information with respect to the Company, its businesses and its securities traded publicly, the following information:

The Board of Directors, in its ordinary session celebrated on this same date, has unanimously agreed to distribute CLP $41,984,667,549, in account of the earnings from 2016, as an interim dividend.

Due to this, the 63st interim dividend will amount to CLP $ $6.8614 per share and will be distributed from the 18th of January 2017.

In accordance with articles 9º and 10.2 of Law Nº 18.045 of the Superintendence of Securities and Insurance and the General Norm Nº 30 of this institution, through this letter I inform to you as material information with respect to the Company, its businesses and its securities traded publicly, the following information:

During today’s Board Meeting, named director Mr. Felipe Larrain Aspillaga has presented his resignation to the Company’s Board of Directors. His alternate director, Mr. Fernando Samaniego Sangroniz will now replace him as named director.

In accordance with articles 9º and 10.2 of Law Nº 18.045 of the Superintendence of Securities and Insurance and the General Norm Nº 30 of this institution, through this letter I inform to you as material information with respect to the Company, its businesses and its securities traded publicly, the following information:

That yesterday, August 11 2016, the Company received Mrs. Nicole Nehme Zalaquett's resignation to the role of named director of the Company.

In accordance with articles 9º and 10.2 of Law Nº 18.045 of the Superintendence of Securities and Insurance and the General Norm Nº 30 of this institution, through this letter I inform to you as material information with respect to the Company, its businesses and its securities traded publicly, the following information:

            During this morning, the Company’s Twenty-sixth General Shareholders Meeting was held, where, as part of the meeting, the Board of Directors was renovated and the following people were elected:

Named Directors	Alternate Directors
Guillermo Pickering De La Fuente	Christophe Cros
Felipe Larraín Aspillaga	Fernando Samaniego Sangroniz
Bruno Philippi Irarrazabal	Laureano Cano Iniesta
Ricardo Escobar Calderón	Loreto Silva Rojas
Herman Chadwick Piñera	Sonia Tschorne Berestesky
Rodrigo Manubens Moltero	Rodrigo Terré Fontbona
Nicole Nehme Zalaquett	Pedro Sierra Bosch

It is noted that directors Rodrigo Manubens Moltedo and Nicole Nehme Zalaquett and their respective alternates Rodrigo Terré Fontbona and Pedro Sierra Bosch, have been elected as independent directors.

Following the General Shareholders Meeting, the Company’s Board of Directors met and in this session, its members unanimously designated Guillermo Pickering De La Fuente as President and Felipe Larrain Aspillaga as Vice-President.

In addition to this, it was agreed that the members of the Directors Committee will be Rodrigo Manubens, Nicole Nehme Zalaquett and Felipe Larrain Aspillaga and their respective alternates. 

In accordance with articles 9º and 10.2 of Law Nº 18.045 of the Superintendence of Securities and Insurance and the General Norm Nº 30 of this institution, through this letter I inform to you as material information with respect to the Company, its businesses and its securities traded publicly, the following information:

The Board of Directors, in its ordinary session celebrated on this same date, has unanimously agreed to call for a General Shareholders Meeting for April 27, at 10:00 am at Avda. Presidente Balmaceda 1398, Tenth Floor, Santiago.

The matters to discuss are as follows:

1. Examine the External Auditors Report, approving the Annual Report and Financial Statements corresponding to the exercise from January 1 to December 31 2015.

2. Agree on the distribution of net income and the distribution of dividends corresponding to the exercise of the year 2015.

3. Exhibition on the Company’s dividend policy.

4. Inform about Operations with related parties (Titles XVI Law 18.046), if these exist.

5. Designate the External Independent Auditors for the 2015 exercise.

6. Designate the Rating Agencies for the 2015 exercise.

7. Board of Directors Election.

8. Determine the remuneration of the Board of Directors for the 2015 exercise.

9. Give an account of the expenses of the Board of Directors during 2014.

10. Determine the remuneration and Budget for the Directors’ Committee for the 2015 exercise.

11. Give an account of the activities and expenses of the Directors’ Committee during 2014.

12. Determine the newspaper where the notices for shareholders meetings, dividend distribution, results, and other matters of interest for shareholders will be published.

13. Other matters of interest and competence of the board.

In addition to this, it will be proposed that 100% of net earnings of the year be distributed, in line with the Company’s 100% net earnings dividend distribution policy, paying a dividend of $14.4539 pesos per share which, if approved by the General Shareholders Meeting, will be paid on May 25 2016.

In accordance with articles 9º and 10.2 of Law Nº 18.045 of the Superintendence of Securities and Insurance and the General Norm Nº 30 of this institution, through this letter I inform to you as material information with respect to the Company, its businesses and its securities traded publicly, the following information:

The Board of Directors, in its ordinary session celebrated on this same date, the Board of Directors has been informed of Mr. Jordi Valls Riera’s resignation as Company’s CEO. His resignation will become effective on March 1st 2016. From the aforementioned date, Mr. Valls will assume other duties within the Suez Group outside of Chile.

In the same session, the Board of Directors of the Company, agreed to appoint Mr. Narciso Berberena Sáenz as CEO. He will start his role on March 1st of this year.

Mr. Berberana Sáenz is Civil Industrial Engineer, who has a Masters in New Technologies for Enterprise Management from Escuela de Organización Industrial de Madrid and Executive Development Plan from IE in Madrid, amongst others. His professional career has developed mainly in Agbar where he has had numerous roles in different global sanitation companies. He is currently a member of Agbar’s Steering Committee where he is in charge of the Infrastructure, Laboratory, Engineering, and Environmental Services Division as its CEO and as the Chief Operating Officer for the Group.