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2016 Annual Report EXPERIENCIES ME MORA BLE

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Page 1: ME MORA BLE - Enjoy | Inversionistasinversionistas.enjoy.cl/upload/pdf/201706051847041390.pdf · 2017-06-05 · ME MORA BLE. 2016 Annual Report FINANCIAL STATEMENTS 02 Letter from

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Annual

Rep

ort

E X P E R I E N C I E S

ME MORA BLE

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02

Letter from the chairman

Company Profile

03 05

Company activity and business

30Corporate governance

Financial management

7556

Information On Associate Subsidiaries And Investments With Other Companies

116Sustainable development

79

Financial statements

Annex: GRI Index

157 245

Statement of Responsibility

156

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Dear Shareholders:

When we began the regional expansion of

ENJOY in 2012, we were convinced that

within five years we could become one

of the main entertainment chains in Latin

America. I am now proud to see how we

have advanced towards our mission, thanks

to a solid and distinct value proposal in

Chile, Argentina, Uruguay and Colombia.

The period described in this Annual

Report was marked by the strengthening

of our business on a regional level. Our

9 Chilean properties had sustained

growth in the Gaming and Non-Gaming

Departments (Hospitality, Food &

Beverage, Entertainment), along with our

market consolidation and the strengthening

of Hotels, after including two new stand

alone operations in 2016: Park Lake Hotel in

Villarrica and Hotel Patagónico (now Enjoy

Puerto Varas), which strengthened our

position in the south of Chile.

The knowledge we have acquired by

operating 10 regional hotels plus the

significant streamlining achieved in

administration and an intense commercial

management through our online presence

and in sales channels in Chile, Argentina,

Uruguay, Brazil, allowed us to close 2016

with a growth in Hotel revenues of 19%,

compared to 2015.

In Uruguay, 2016 was impacted by the

economic situation of Argentina and

Brazil, the main sources of tourism for

the Punta del Este resort, which had a

contraction from reduced tourism. While

Hotel recorded a very good performance,

the drop in Gaming revenue in the summer

of 2016 was a difficult gap to recover

from during the rest of the year, due to

considerable decrease in visitors. However,

the last quarter showed good prospects

for 2017 after the recovery of the Argentine

market and Punta del Este destination.

In Mendoza, one of the most competitive

Gaming markets in which 18 casinos

operate, we managed to keep our market

share and today Enjoy Mendoza recorded

the highest revenues in Gaming Tables

and the second highest revenues in Slot

Machines, according to data reported in

December 2016 by the Provincial Institute

of Games and Casinos. Likewise, in 2016 we

03

LE

TT

ER

FR

OM

T

HE

CH

AIR

MA

N

The

2016

per

iod

show

s th

e hi

ghes

t ret

urns

from

the

busi

ness

sin

ce

the

entr

y in

forc

e of

the

Toba

cco

Act t

hat a

ffect

ed th

e en

tire

indu

stry

in

201

3, a

nd w

e ex

pect

it to

be

the

begi

nnin

g of

a c

ycle

of p

rofit

abili

ty

for

our

shar

ehol

ders

.

LETT

ER F

RO

M T

HE

CH

AIR

MA

N

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04

managed to consolidate the operation of

the Hotel started in the second half of 2015,

which impacted results positively.

On the other hand, our arrival in 2016 to

the Colombian market through Enjoy

San Andrés, located next to the Royal

Decameron Isleño Beach Resort, has

been a great opportunity to get to know

this market, its rules and preferences of

customers.

The regional context, coupled with the

management model implemented in 2014,

was shaped by the chain’s adjustments

and the necessary behavioral adjustments

that were encouraged in our company staff

towards efficiency and productivity. During

2016, these changes were also evident in

our corporate offices, where we promoted

a decentralization of teams and a decrease

in the related operational costs, prioritizing

resources and strategic efforts to offer a

better proposal to our customers.

From a financial perspective, ENJOY

focused on strengthening the balance

sheet and improving its debt in terms of

profile and cost. The delay in issuance of

operating permits for the current municipal

casinos meant postponing implementation

of the initiatives related to these projects

and their respective financing.

Although the operating results have

been positive, the Financial Statements

of ENJOY S.A. at December 31, 2016

recorded a significant loss from changes in

fair value of financial derivatives (Call and

Put options) related to the acquisition of

Enjoy Punta del Este. If we isolate those

accounting effects, 2016 had its highest

returns since the entry into force of the

Tobacco Act that affected the entire

industry in 2013, and we hope it is the

beginning of a profitability cycle for our

shareholders.

I would also like to highlight that our

commitment to transparency, strict

regulatory compliance and good corporate

governance were key to performing in

alignment with the Company’s growth

objectives. In 2016, the new Board elected

for ENJOY S.A. aimed at strengthening

its best practices. To account for this and

other issues relevant to the Company’s

sustainability, we included our social and

environmental performance as part of

this Report, in the chapter “Sustainable

Development”, instead of publishing an

independent report.

In 2017, we will keep working hard to

strengthen our leadership position in the

Latin American entertainment industry. The

following period will have good regional

prospects at a regional level, which, along

with the acquisition of 55% of Enjoy Punta

del Este, will allow us to keep growing. In

Chile, we trust that the authority will resolve

the current uncertainty regarding operating

permits of municipal casinos, which

represent an important source of income

for Enjoy, employment and resources for

municipalities.

Finally, I would like to thank our

shareholders for their trust and specially

to our over 6,800 employees in Latin

America, who have been essential in this

Company’s history. Along with you, we will

keep generating value for our shareholders,

customers and the community at large.

JAVIER MARTÍNEZ SEGUÍ Chairman ENJOY S.A.

LE

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AIR

MA

N 2

016

A

nn

ual R

ep

ort

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Mem

ori

a A

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al

En

joy 2

016

01C

OM

PAN

Y P

RO

FILE

TABLE OF CONTENTS

ME MORA BLE

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WH

AT

INSP

IRES

US

VISIONTo be known as an excellent company in

the entertainment industry for providing an

array of rich experiences for our customers,

profitability for our shareholders, fostering

mutual loyalty with our employees and

basing our actions on ethical principles.

MISSION

We aim to improve our customer’s

wellbeing by being genuinely concerned

about their entertainment, enjoyment,

and care by creating memorable events

and experiences of comprehensive

gaming, hotel, tourism, and gastronomy,

in an efficient, beneficial, and responsible

environment.

CO

MP

AN

Y

PR

OF

ILE

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Commitment

MeritExcellence

Warmth

Passion Integrity and transparency

CORPORATE VALUES

CO

MP

AN

Y

PR

OF

ILE

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Foundationand expansion

Evolution of integral business model

1975

2000

1994

2002

1995

2005

1997 1998

Viña del Mar Casino.

Puerto Varas Casino.

Coquimbo Casino.

Opening of Hotel del Mar, Viña del Mar.

Pucón Casino.

Creation of a unique brand: Enjoy.

Opening of Hotel del Lago, Pucón.

Operation of 3 casinos in Panama.

OU

R

HIS

TOR

Y

CO

MP

AN

Y

PR

OF

ILE

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DEVELOPMENT OF ENJOY CHAIN AND INTEGRAL FINANCIAL BASE

Development of enjoy chain and integral financial base

Regionalexpansion

2007

2012

2006 2008

2013

2009 2010

2015

2011

2016

Sale of Panama Casinos.

Opening of new Enjoy Coquimbo casino and Hotel de la Bahía, Coquimbo.

Opening of Enjoy Antofagasta, Enjoy Mendoza and Casino Colchagua.Purchase of Gran Hotel Pucón.

Enjoy S.A. starts participating in the stock market and the company’s shares begin trade on the Santiago Stock Exchange.

Bond issue for USD 200 MM in local market and acquisition of Enjoy Santiago.Sale of Hotel and Casino Puerto Varas.

Opening of Enjoy Santiago

Opening of Enjoy Chiloe Casino.

Enjoy enters Uruguay as operating partner in Casino Conrad.Caesars Entertainment enters as partner of Enjoy and appoints a member to the Board of ENJOY S.A.Opening of Hotel de la Isla, Chiloé.

Partnership with Decameron to operate casinos in its resorts in Latin America.

Opening of Enjoy San Andrés, first Enjoy casino in Colombia.Consolidation of stand alone hotel business: Enjoy Park Lake in Villarrica and Enjoy Puerto Varas.

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10

CO

MM

ERC

IAL

OFF

ICES

IN L

ATIN

AM

ERIC

A

Ch

ile

+5

6 6

00

70

0 6

00

0A

rgen

tin

a

+5

411

5775

19

00

/ 0

80

0 2

2 2

66

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Uru

gu

ay

+5

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42 4

911

11 /

4724

00

Bra

sil

+5

511

370

9 0

00

0

OU

R

OP

ERAT

ION

S

Properties

Business Offices

COLOMBIA

San Andrés

BRAZIL

URUGUAY

Punta del Este

Sao Paulo

ARGENTINA

Buenos Aires

Mendoza

CHILE

Antofagasta

Coquimbo

Rinconada de los Andes

Viña del Mar

Santa Cruz

Castro

Santiago

Puerto Varas

Villarrica

Pucón

REGIONAL PRESENCE

CO

MP

AN

Y

PR

OF

ILE

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1 hotel

294 rooms

544slot machines

70 gaming tables

75.524 m2 built area

9 restaurants and bars

• convention center• Ovo Club• Ovo Beach• spa , pools, tennis

1.026 employees*

ENJO

Y P

UN

TA D

EL E

STE

PLAY

A M

ANSA

PAR

ADA

4, P

UN

TA D

EL E

STE

/ UR

UG

UAY

Wo

rld

Tra

vel A

war

ds

U

rug

uay

's L

ead

ing

Ho

tel

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MP

AN

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PR

OF

ILE

*Does not consider 735 fixed-term contracts.

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92 hotel rooms

842 slot machines

42 gaming tables

124 bingo positions

37.116 m2 built area

ENJO

Y A

NTO

FAG

AST

A

10 restaurants and bars

755 employees

AV. A

NGA

MO

S 01

455,

AN

TOFA

GAST

A / C

HIL

E.

1 hotel

• convention center• Ovo discotheque• spa , pool

CO

MP

AN

Y

PR

OF

ILE

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ENJO

Y C

OQ

UIM

BO

37.220 m2 built area

111 hotel rooms

919 slot machines

38 gaming tables

70 bingo positions

7 restaurantsand bars

761 employees

AV. P

EÑU

ELAS

NO

RTE

56,

CO

QU

IMB

O /

CHIL

E.

1 hotel

• convention center• Ovo lounge• Ovo beach• spa , pool

CO

MP

AN

Y

PR

OF

ILE

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60 hotel romms

1.500slot machines

68 gaming tables

148 bingo positions

34.000 m2 built area

10 restaurantsand bars

1.327 employees

ENJO

Y VI

ÑA

A D

EL M

AR

AV. S

AN M

ARTÍ

N 1

99, V

IÑA

DEL

MAR

/ CH

ILE

1 hotel

• convention center• Ovo club• spa , pool

CO

MP

AN

Y

PR

OF

ILE

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ENJO

Y SA

NTI

AG

O

120 hotel rooms

1.380 slot machines

57 gaming tables

100 bingo positions

35.468 m2 built area

6 restaurantsand bars

912 employees

KIL

ÓM

ETR

O 5

3, A

UTO

PIST

A LO

S LI

BER

TAD

OR

ES, R

INCO

NAD

A D

E LO

S AN

DES

/ CH

ILE

• convention center• spa, pool, tennis• outdoor park

1 hotel

CO

MP

AN

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PR

OF

ILE

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ENJO

Y P

UC

ÓN

34.518 m2 built area

272 hotel rooms and apartments

527 slot machine

23 gaming tables

7 restaurants and bars

759 employees

MIG

UEL

AN

SOR

ENA

121,

PU

CÓN

/ CH

ILE

• convention center• pool, recreational center, tour operator• ski center

1 hotel

CO

MP

AN

Y

PR

OF

ILE

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72 hotel rooms and apartments

230 slot machines

17 gaming tables

36 bingo positions

15.799 m2 built area

4 restaurantsand bars

258 employees

ENJO

Y C

HIL

RU

TA 5

SU

R 2

053,

CAS

TRO

/ CH

ILE

• convention center• Ovo discotheque• spa, pool, cinema

1 hotel

CO

MP

AN

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PR

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ENJO

Y M

END

OZA

180 hotel rooms

569 slot machines

24 gaming tables

5 restaurants and bars

369 employees

38.000 m2 built area

PRIM

ITIV

O D

E LA

RET

A 10

09, M

END

OZA

/ AR

GEN

TIN

A

• convention center• spa, pool

1 hotel

CO

MP

AN

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PR

OF

ILE

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CA

SIN

OC

OLC

HA

GU

A

240 slot machines

19 gaming tables

30 bingo positions

4.000 m2 built area

139 employees

AV. E

RR

ÁZU

RIZ

255

, SAN

TA C

RU

Z / C

HIL

E

CO

MP

AN

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PR

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ENJO

Y SA

N A

ND

RÉS

AV. C

OLÓ

N C

ALLE

3R

A N

°6-1

06, S

ECTO

R S

PRAT

T B

IGH

T, S

AN A

ND

RÉS

/ CO

LOM

BIA

73 slot machine

9 gaming tables

1 bar

43 employess

1.300 m2 built area

CO

MP

AN

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PR

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ENJO

Y PA

RK

LA

KE

CAM

INO

VIL

LAR

RIC

A -

PUCÓ

N K

M. 1

3, R

EGIÓ

N D

E LA

AR

AUCA

NÍA

/ CH

ILE

7.500 m2 built area

3 restaurantsand bars

93 employees

• convention center• spa

1 hotel

70 hotel rooms

CO

MP

AN

Y

PR

OF

ILE

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ENJO

Y P

UER

TO V

AR

AS

KLE

NN

ER 3

49, P

UER

TO V

ARAS

, REG

IÓN

DE

LOS

LAG

OS

/ CH

ILE

91 hotel rooms

14.664 m2 built area

3 restaurants and bars

103 employees

• convention center• spa

1 hotel

CO

MP

AN

Y

PR

OF

ILE

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TSEnjoy’ s offer in Latin America is varied and customized to the needs of different types

of customers. Our entertainment proposal includes gaming, gastronomy, hotels, shows,

Convention Centers, aside from other tourism services.

Our

exp

erie

nce

of m

ore

than

40

year

s in

Chi

le, h

as

allo

wed

us

to d

evel

op a

suc

cess

ful a

nd v

ery

effe

ctiv

e bu

sine

ss m

odel

, whi

ch to

day

is p

rese

nt a

t a re

gion

al

leve

l in

Arge

ntin

a, U

rugu

ay a

nd C

olom

bia.

OU

R V

ALU

E P

RO

PO

SAL

23

1_GAMING

Our gaming business is integrated by the

operation of 10 casinos in Latin America,

all with modern ambiences, the latest

gaming technology, and high standard

complementary services that provide a

great entertainment experience.

Our casinos have more exclusive

entertainment areas in the VIP Lounges,

both in Tables and slot machines, with a

high standard and level of service. In 2016,

these lounges established themselves as

favorites of Platinum and Diamond clients

of the Enjoy Club at a regional level, as well

as Seven Stars customers of Enjoy Punta

del Este.

We understand that along with a great

service, an important part of our success

lies in the innovation of the product offer.

In 2016, we kept our technological edge by

adding state-of-the-art gaming machines

that were extremely successful worldwide

and in our venues, such as 88 Fortunes and

Fu Dao Le, both with the option of setting

progressive jackpots of up to four levels.

Additionally, in response to customer

demand for accessing world-class poker

circuits, in 2016, Enjoy consolidated its

position as the leading poker chain in Latin

America by making important strategic

alliances for the first time in Latin America

slot machines

6.824casinos

10

with the World Series of Poker (WSOP)

and the Brazilian Series of Poker (BSOP),

two of the world’s top tournaments.

This, in addition to the current alliance with

the Latin American Poker Tour - LAPT

(now Poker Stars Festival), another of the

most important regional poker events,

that will take place at Enjoy Viña del Mar

and Enjoy Punta del Este, and the series

Enjoy Poker Series (EPS), which is currently

the most important Hold’em Poker

Championship in Chile, held annually in our

main Chilean venue since 2006.

508gaming tables

367bingo positions

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Dur

ing

2016

Enj

oy w

as c

onso

lidat

ed a

s th

e m

ain

regi

onal

pok

er c

hain

by

host

ing

the

first

Wor

ld

Seri

es o

f Pok

er (W

SOP)

in E

njoy

Pun

ta d

el E

ste.

2_HOSPITALITY

Enjoy hotels are designed to provide

high-end comfort and style and its range

of customers is as varied as the segment

of players, groups that attend corporate

congresses or families on vacations.

Our hotels are located in important cities

and in some of the main tourist centers

of Latin America and, along with the

infrastructure of first level, we have a highly

trained staff to deliver attentive and helpful

attention.

4dates players total cash prizes

2.535 USD 7.527.440tournament

27dates players total cash prizes

1.976 USD 3.660.569tournament

233

113

ENJOY POKER TOURNAMENT

POKER TOURNAMENTS IN ALLIANCE WITH LAPT - WSOP - BSOP

The high standard of our properties and

services is always accompanied by the

identity of each locality, which is evident

both in the offer of products and services,

as in the interior design of the spaces, the

landscaping and the tourist proposal that

forms part of the Enjoy experience.

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In 2

016

Enjo

y ad

ded

two

new

hot

els

to it

s op

erat

ion:

Enj

oy P

ark

Lake

en

Villa

rric

a an

d En

joy

Puer

to V

aras

. During 2016, the Hotel business line kept

its growth levels and customer satisfaction

rates, even during the regional economic

crisis. This was possible thanks to the

chain’s management through the network

of commercial offices of Enjoy in Chile,

Argentina, Uruguay and Brazil - including

sales in the cities of Concepción and

Temuco - and the incorporation of new

technologies and income optimization

strategies.

This year was also marked by the

start of two operations of stand alone

hotels (without associated casino), that

expand this line’s potential for Enjoy. The

incorporation to the chain of Enjoy Park

Lake hotels in Villarrica and Enjoy Puerto

Varas go along with important actions to

promote these tourist destinations in the

context of Convention Tourism.

In the period analyzed, the business linked

to Business and Conventions Tourism

(known as MICE / Meeting, Incentive,

Congress and Events) was highly relevant,

as well as the expectation to keep growth

throughout the chain, starting from the

regional marketing of our 10 Convention

Centers.

hotel rooms

1.362hotels

10

convention centers

19%hotel Income Growth

2015-2016

10C

OM

PA

NY

P

RO

FIL

E

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3_FOOD & BEVERAGES

Our Food and Beverages operation is made

up of restaurants and bars throughout

our venues, that are also used to cater for

events in our Convention Centers. Enjoy’

s proposal includes a gourmet offer that

merges international culinary techniques

with unique local flavors in an entertaining

environment.

After inaugurating OVO Beach concept

in Enjoy Punta del Este and in Enjoy

Coquimbo, we have over 70 options such

as buffet rooms, haute cuisine restaurants,

innovative bars, cozy cafes and beach inns.

During the year, this business line focused,

among other things, on standardizing the

brands present throughout the supply

chain, such as La Barquera, Santerra, OVO

and Jokers, in order to further refine the

experience of customers that respond to

the consistent offer, excellence and quality

associated with our brand Enjoy.

In addition, the Food and Beverage

business implemented a plan to reinforce

the presence of its product and services in

Social Networks, as a complement to the

gaming experience.

Finally, at a corporate level, the Food &

Beverages team executed a training plan

4_ENTERTAINMENT

From its inception, our company has

fostered important musical shows and

performances and at present, this is an

attractive line of business.

Enjoy has enhanced in its value proposition

OVO Nightclub format, with the best

parties and major international DJ’s.

nightclubs

5

throughout the chain, encouraging the

exchange of professionals working in

the different business units, according to

each season’s demand, which resulted in a

valuable transfer of best practices.

Each Enjoy hotel has a Convention Center

that hosts important seminars, congresses,

exhibitions and events throughout the

year, directly contributing to increase visits

during the low season.

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5_ENJOY CLUB

Enjoy’ s entertainment proposal is designed

to meet the needs and preferences of

today’s and tomorrow’s customer. Enjoy

Club is one of the main platforms that

allows Enjoy to know its customers

better and meet their requirements, thus

achieving higher levels of customer loyalty.

This loyalty club gives members the

possibility of accumulating points and

“Enjoy Pesos” for each purchase they

make in the different business of the chain,

which can then be redeemed for Gaming

coupons, hotel stays, bars and restaurants

vouchers, Enjoy entertainment tickets or

spa services.

Members access the Classic, Silver,

Gold, Platinum and Diamond categories

according to their consumption during

the year in all Enjoy’ s businesses and

these categories, in turn, give them access

to discounts and preferential benefits,

as well as to participate in promotions,

tournaments and millionaire prizes.

Present in Chile, Argentina, Uruguay

and Colombia, during 2016 Enjoy Club

continued adding new members, which at

year-end totaled 1.404.591, of which 78.901

entered the Club during 2016.

In recent years, in Chile, Enjoy Club has

been profiling itself as a business unit,

based in strategic alliances with important

companies in the country, generating 2016

historical revenues for almost

$ 700,000,000.

» Enjoy – LatamPass Alliance

» Enjoy – Cencosud Alliance

» Enjoy – Hertz Alliance

» Enjoy - Banco BBVA AllianceCurr

ently

, Enj

oy C

lub

has

1,40

4,59

1 m

embe

rs in

Chi

le, A

rgen

tina,

Uru

guay

an

d Co

lom

bia.

From an alliance with BBVA Bank, Enjoy

clients in Chile can use the VISA Enjoy-

BBVA credit card through the network and

in external commercial transactions. Every

time customers shop using the Visa Enjoy-

BBVA credit card, they earn Enjoy Pesos to

exchange for Enjoy products and services,

thus promoting visits to our premises.

It also provides discounts when used as

payment method in hotels, restaurants,

bars, spa and shows. It offers bank benefits

when used in Enjoy Casinos, as for example

payment in 2 to 12 interest-free installments

in Hotels, Restaurants and Bars and

interest-free gaming purchases.

6_MARKETING

During 2016, Enjoy kept strengthening its

communication with customers through

digital channels, with a strong presence in

Social Networks and a community upkeep

and expansion strategy.

In line with new trends and customer

preferences, Enjoy made a good use of

Instagram this year, successfully closing

it with more than 40,000 followers

throughout the chain.

The above once again positioned us as the

number one company in Social Network

activity of the industry, strengthening our

engagement with clients and followers. The

investment in digital media made during

2016 proved efficiency, effectiveness, price,

quality and reach.

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C

OR

PO

RAT

E IN

FOR

MAT

ION IDENTIFICATION OF THE ENTITY

Name Enjoy S.A.

Trade name ENJOY

Fiscal ID code 96.970.380-7

Business Address Avda. Presidente Riesco 5711, piso 15, Las Condes, Santiago de Chile.

Phone (+56) 22 770 5000

Investor relations Esteban Rigo-Righi

Email [email protected]

Phone (+56) 22 770 5071

Website www.enjoy.cl

Type of entityOpenly held corporation, listed in the Securities Register under number 1,033, on June 9th 2009.

Enjoy S.A. was incorporated as a closely held corporation as per the public instrument issued on October 23rd 2001, at the Santiago Notary’s Office of Eduardo Diez Morello.

LEGALIZATION

An extract from the above instrument

of incorporation was registered in the

Santiago Land Registry on page 29,692,

number 24,230, corresponding to 2001,

and published in the Official Gazette on

November 23rd 2001.

BUSINESS OBJECT

The object of the company is to make

all kinds of investments, in Chile and

abroad, whether in property, tangible or

intangible movable property, shares in

openly and closely held companies, joint

stock companies, special companies or

others, rights in other companies, bonds,

negotiable instruments and other securities;

to purchase, sell, exchange, let, sublet

urban or rural property, or rights to such

property, administer and use, build on the

property, directly or on behalf of a third-

party; exploit them directly or through

others, in any. The Company may partake

in the formation of any kind of business

or incorporate other existing businesses,

whether domestic or foreign. Nevertheless,

the company’s main business object shall

be any activity related to tourism, hotel

business, casinos, gastronomy, and general

entertainment.

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MA

NAG

EMEN

T

Compliance and Corporate Governance

Internal Audit

Enjoy Punta del EsteGaming

Hospitality

Corporate Finance

Planning and Management

Control

Strategig Development

Marketing

Legal Department

Corporate Communications

Enjoy Chiloé

Enjoy Viña del Mar

Enjoy San Andrés

Enjoy Antofagasta

Enjoy Mendoza

Enjoy Santiago

Enjoy Park Lake Villarrica

Enjoy Coquimbo

Casino Colchagua

Enjoy Pucón

Enjoy Puerto Varas

Board

CEO

Senior Management at Enjoy’s Properties

Security & Surveillance

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02C

OM

PAN

Y AC

TIVI

TIES

A

ND

BU

SIN

ESS

ME MORA BLE

TABLE OF CONTENTS

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2016

IN

FIG

UR

ES

casinos

10On February 26th, Enjoy opens its first

casino in Colombia, from the alliance

sealed with hotel operator Decameron.

Enjoy San Andrés is located on San

Andrés Island, next to the Royal

Decameron Hotel. It has 72 slot

machines and 8 gaming tables.

hotels

10Enjoy adds 2 new hotels:

Enjoy Park Lake in Villarrica

and Enjoy Puerto Varas.

convention centers

restaurants and bars

10

65

The

initi

ativ

es fo

ster

ed d

urin

g 20

16 a

llow

ed th

e Co

mpa

ny to

info

rm th

e Su

peri

nten

denc

e of

Sec

uriti

es a

nd In

sura

nce

(SVS

) of t

he re

sults

of 2

016:

an

EBIT

DA

of $

61.1

61 m

illio

n, re

pres

entin

g a

4,34

% g

row

th o

ver

the

last

yea

r’s

repo

rtin

g pe

riod

.

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ski center

1

slot machines

6.824

gaming tables

367

bingo positions

508

Distinguished in 2016 by Trivago,

which ranked it among the Top

10 snow destinations in the

southern hemisphere.

worldpoker alliances

2

visits to casinos

accomodation nights

+ 6 millions

339.283

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NEW AWARDS AND DISTINCTIONS

Conrad Punta del Este Resort & Casino,

operated by Enjoy, receives a triple

distinction in the World Travel Awards,

as the most important hotel in Uruguay,

as the best hotel suite in the country and

as the most outstanding resort in the

Uruguayan territory.

Enjoy Chiloé’s Hotel renews its “Sello S”

Certificate, which accredits it as an hotel

that meets the global criteria of sustainable

tourism, in the socio-cultural, environmental

and economic fields.

Enjoy Coquimbo’s Hotel de la Bahía

receives Tripadvisor 2015 Certificate of

Excellence in recognition of the travelers

who use this platform due to its quality

of service.

Enjoy is distinguished amongst the

companies of the Region of Valparaíso

with better transparency, according to the

Corporate Transparency Ranking prepared

by InD Business Intelligence.

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TSLATIN AMERICA GAMING INDUSTRY

We operate in four of the seven largest land-based private gaming markets in Latin

America. The strong slots revenue growth expected from 2015 to 2020 forms the bedrock

for an expected gaming gross revenue expansion in the Latin American markets.

34

DES

CR

IPTI

ON

O

F TH

E IN

DU

STR

IAL

SECT

OR

Chile

The Chilean gaming market consists of

lotteries, bingo halls, casinos, slot machines

and horse racetracks. There are currently

24 gaming licenses which have been

provided to gaming operators in Chile. Out

of these, 7 fall under municipal jurisdiction

and 17 under the new law governed by the

Gaming Superintendence. The licenses are

awarded via investment project bids and

have a limited term. Each license provides

exclusive rights to a relevant market within

a 70 km radius and has a different tax

structure which the holder must abide by.

The Chilean industry is currently

concentrated in two main players, due to

the merger of the Chilean group Dreams

(with casinos in Iquique, Temuco, Valdivia,

Puerto Varas, Coyhaique and Punta

Arenas) with the South African group Sun

International, that operates Monticello

casino.

According to the information retained

earnings of 2016 published by the

Superintendence of Gaming Casinos (SCJ),

plus the result of Enjoy Municipal casino,

the distribution of gross revenues of the

entire casino industry in Chile was led

by Enjoy(39.08%), followed by the Sun-

Dreams merger (38.25%).

Enjoy leadership in the industry is an

important competitive advantage, mainly

based on its ability to understand the

demand by translating the gaming and

entertainment behavior of the different

customer segments, thus achieving greater

market penetration and customer loyalty.

A valuable component of this leadership

is Enjoy’ s geographic coverage, as it has

become an entertainment option not only

in the north, center and south of Chile, but

also in Uruguay, Argentina and Colombia,

where it continuously absorb the demand

of the different seasons and mitigates

seasonality at the chain level.

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> Regulatory framework for casinos in Chile

The casino industry in Chile began

more than eighty years ago, with the

authorization to establish a casino in the

city of Viña del Mar. From this milestone

until the early nineties, six additional

licenses were authorized, in the form of

municipal concessions, in different tourist

cities, which are, from north to south:

Arica, Iquique, Coquimbo, Pucón, Puerto

Varas and Puerto Natales. An industry

of seven casinos developed throughout

Chile.

Law Nº 19,995 was enacted in 2005,

setting forth the general bases for the

Authorization, Operation and Control of

Gambling Casinos, defining (Article 3)

games of chance as the ones listed in the

Gaming Catalog of the Superintendence

of Gaming Casinos (SCJ), such as: slot

machines, roulette, card games, which

Market Share in Chilea at Dec. 31, 2016

Source: SCJ

39,08% ENJOY

38,02% Dreams - Monticello

4,20% Latin Gaming

13,08% Clairvest -Sol

5,22% Rest od the industry

include poker derivatives, blackjack and

Baccarat, dice games, like traditional

craps, and lastly bingo.

The Chilean state has boosted the

gaming casinos industry through this law,

expanding into 18 new licenses, each with

a duration of 15 years, and limiting the

number of casinos that can operate to a

maximum of 25 at a national level.

In terms of geographic distribution,

Law Nº 19.995 states that each region

may have up to three casinos, with

a geographical location restriction

indicating that gaming casinos must be

more than 70 km. apart, regardless of

their regional location.

In Chile, pursuant to Law 19.995 and its

Regulations, the main rights and duties

of the operating companies are the

following:

» To develop games that are officially

included in the gaming catalog.

» To use the machines and gambling

implements previously approved in the

register kept by the Superintendence

of Casinos.

» To operate only in the tailored

establishment set in the operating

permit.

» To permanently keep a liquidity

reserve that can meet the daily bets

made in the premises.

» To operate every day of the year

except on days of statutory exception.

In any case, no gaming facility,

whatever the day or time of year, is

allowed to run for less than six hours a

day.

» To have certain minimum gaming staff,

which shall be registered in the list held

by the Superintendence of Casinos.

» To provide and operate the

complementary services referred to in

the respective operating permit.

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On August 11, 2015, Law Nº 20.856 was

published, amending Law Nº 19.995.

Among others, it extends the operation

of municipal casinos until December 31

2017. Additionally, from January 1st 2018,

all municipal casinos will be subject to

the same regulation as the rest of the

industry, delivering 10% of their income

to the regional government and at

least 10% to the municipality of their

respective commune. It is noteworthy

that Law Nº 20.856 grants the right to

the cities where municipal casinos are

located, to host casinos for 3 consecutive

periods of 15 years each.

Regarding grants of casino operating

licenses in the cities where municipal

casinos currently operate, i.e. Arica,

Iquique, Coquimbo, Viña del Mar, Pucón,

Puerto Varas and Puerto Natales, on

July 15 2016, three of the current

operators of gaming casinos, including

Enjoy, filed protective appeals before

the Court of Appeals of Santiago

against the Technical Bases for the

granting of licenses to operate gaming

casinos in said communes issued by the

Superintendence of Gaming Casinos

(SCJ).

On November 2 2016, the Court of

Appeals ruled the filed appeals and

accepted allegations of illegality

and arbitrariness contained in the

aforementioned bases. As a result of

its ruling, the application process for all

licenses, submitted to the Technical and

Economic Bids on November 4 2016,

was suspended, and the mandate of the

SCJ was to amend the Technical Bases

only as accepted by the Court. Without

prejudice to this, on November 8 2016

the SCJ filed an appeal for annulment

to the Supreme Court against those

judgments. The Supreme Court is

currently awaiting hearing.

Notwithstanding the foregoing, on

February 15 2017, the SCJ issued

Newsletter Nº 084, by which it extended

the concessions of municipal casinos,

allowing current concessionaires to

operate from December 31 2017 until

the date of the new permits, that is, until

when the SCJ has issued the certificate

attesting to compliance with all legal and

regulatory obligations necessary to start

gaming casino activities.

In C

hile

, Enj

oy h

as 3

mun

icip

al li

cens

es in

forc

e, in

the

citie

s of

Viñ

a de

l Mar

, Puc

ón a

nd C

oqui

mbo

, unt

il a

new

ope

rato

r is

aw

arde

d, a

nd 4

lice

nses

gra

nted

by

Law

19,9

95, v

alid

for

15 y

ears

from

its

awar

d.

> Revenues of the Casino Industry in Chile

According to data from the

Superintendence of Gaming Casinos

(SCJ), gaming revenues during 2016

exceeded $454 billion (US$ 671,442,994)

representing a growth of 6.2% of the

industry’s total win industry compared to

2015.

Regarding the average spend per visit,

considering the universe of the SCJ

casinos, it reached $56.200 (US$ 83,1),

4.4% higher than in 2015.

win 2016

average spend per visit 2016

$454 billion US$ 671,442,994

$56.200 / US$83,1

Source SCJ

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Uruguay

Uruguay’s gaming industry is composed of

lotteries, casinos, gaming halls, horse-race

betting and sports betting.

We believe that the gaming market in

Uruguay is very well developed and shows

one of the highest penetration levels

compared to other gaming markets in

Latin America. Uruguay’s gaming market

is partially composed of Brazilian tourists

that come to Uruguay due to the lack of

current gaming opportunities in Brazil.

The two largest players in the industry are

Enjoy and Codere, with gaming operations

in Punta del Este and Montevideo.

> Regulatory framework for casinos in Uruguay

In Uruguay, the right to operate a casino

may be granted either by the state

(through the Executive Branch) or by the

Municipal Government of Montevideo

(“IM”). The state or the IM may develop

casinos’ activities either directly, under

a concession regime or under a mixed

system. Furthermore, the State has the

monopoly over the following activities:

lotteries, casinos, gaming halls and horse-

race betting.

For the State’s Casinos, the competent

authority to exploit and control their

activity is the Dirección General de Casinos

(the “DGC”), an office of the Ministry of

Economy and Finance. Private casinos

granted by the State (like Enjoy Punta

del Este) are supervised by the Ministry

of Economy and Finance through the

Auditoría Interna de la Nación, an office

of the Ministry of Economy and Finance.

The DGC may operate the state’s casino

directly or may make agreements with

private parties (hotels), but the DGC

always remains the casino operator.

For casinos operated by a private entity,

decree N° 588/975 (dated July 24,

1975) and the amendments, rules and

procedures thereto establish the rules that

must be followed by a concessionaire. This

decree also governs the public bidding

process for the selection of potential

concessionaires.

The Enjoy Punta del Este casino was

awarded a license to operate privately

and signed a contract directly with the

government. The license granted has

as its sole objective the creation of an

entertainment complex with the exclusive

purpose of operating a 5-star hotel under

the name “Conrad,” with a convention

center, casino and related businesses.

While Uruguay does not have a defined

gaming tax, Enjoy Punta del Este currently

has a mandatory minimum payment

obligation of the higher of US$ 7,3 million

or a 6,50% of gaming revenues, in 2016.

Such structure will increase slightly over

the next twenty years reaching the higher

of 7.75% of gaming revenues or US$8.0

million in 2036.

> Revenues of the Casino Industry in Uruguay

There is no public information.

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Argentina

Argentina is the leading casino gaming

market in Latin America. Its gaming

industry is comprised of lotteries,

gaming halls and horse racetracks and

is regulated at the provincial level. Most

casinos and gaming halls are run by

private operators.

> Regulatory framework for casinos in Argentina

In Argentina, each province sets its own

regulations. In the province of Mendoza,

the granting of concessions for the

exploitation of gambling is regulated by

the provincial Law N° 5775 of 1991 and its

Regulatory Decree No. 2235/1992.

The provincial Law No. 5775 allows

the installation and operation of

gambling rooms in hotels of “Five Star

International” category resulting from

new ventures and that are located within

the urban fabric of the cities of Mendoza,

Godoy Cruz, Las Heras and Guaymallén.

According to this provincial law, only 4%

of the total floor area of the property can

be used as gambling halls.

In Mendoza, the Provincial Institute of

Games and Casinos (IPJyC) regulates

the gambling activities. Licenses granted

to operate, including Enjoy licenses,

extend for an unlimited duration. There

are currently 18 casinos operating in the

province, of which eight are from private

operators. The gambling tax for private

operators at Mendoza is 20% of slot

machines gross revenue.

The total offering in casinos in the

province was comprised of 5,052 slot

machines and 91 gaming tables as of

September 2016, according to the IPJyC.

This represents a penetration of 1 slot

machine for every 344 inhabitants and 1

gaming table for every 19,109 inhabitants.

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> Revenues of the Casino Industry in Mendoza, Argentina

On November 2016, the Provincial

Institute of Games and Casinos of

Mendoza started providing information

on Gaming Casinos revenues (win) in the

Casino

Gaming Tables Win Nov + Dec 2016 ($AR)

Slot machines WinNov + Dec 2016($AR)

Casino de Mendoza Sede Central 2.882.454,00 36.257.773,75

Casino de Mendoza Anexo General Alvear 11.856.015,28

Casino de Mendoza Anexo Malargüe 6.744.786,10

Casino de Mendoza Anexo Rivadavia 12.243.212,25

Casino de Mendoza Anexo San Martin 30.116.097,42

Casino de Mendoza Anexo Tunuyan 10.101.879,20

Casino de Mendoza Anexo Tupungato 5.403.725,13

Casino de Mendoza Anexo Uspallata

Casino de Mendoza Anexo Eugenio Bustos

Casino de Mendoza Anexo La Consulta 3.731.046,96

Regency 4.664.155,00 57.320.986,93

Enjoy 9.605.684,50 45.653.821,59

Condor 8.034.808,00 29.552.822,02

Arena 8.841.096,50 30.276.175,57

Fuente Mayor 259.830,00 2.135.295,63

Tower 629.660,00 17.058.256,51

Casino Club 780.690,00 13.482.999,12

Las Leñas

Total 35.698.378,00 311.934.893,46

Province, as broken down below. Enjoy

Mendoza registers the highest revenues

in Gaming tables, and the second highest

income in slot machines.

Colombia

The Colombian Gaming market consists

of lotteries, bingo halls, casinos, slot

machines and horse racetracks. The

lottery market includes Baloto, the

national lottery, and Lotería de la Cruz

Roja (the “Red Cross Lottery”), in

addition to other local lotteries.

The country’s casino, gaming and

bingo hall industries are privately run.

They are comprised of various small

operators and are highly fragmented.

According to the Colombian market

regulator, Coljuegos, the total number of

licensed slot machines in Colombia was

approximately 82,600 as of December

31, 2015. The most common machines in

Colombia do not have maximum wager

and prize limits. As of December 31, 2015,

the Colombian slot machines market

had approximately 377 legal operators,

excluding machines located in casinos.

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> Regulatory framework for Gaming Casinos in Colombia

The regulatory body of the industry

is COLJUEGOS, an Industrial and

Commercial Company of the State that

administers the Rent Monopoly of the

Games of Luck and Chance. Its objective

is the exploitation, administration,

operation and issuance of regulations of

the so-called “localized games” - casinos,

bingos, bets on sports and virtual races;

the “Novelty Games” (Baloto- Revancha

and Super Astro Millionaire), National

Raffles and Promotional Sweepstakes.

According to Colombian law, casinos are

commercial premises that host games

of chance and operate with different

gambling elements, such as poker tables,

roulette, slot machines, spheres, and

other modes of local games.

Law 643 of 2001 and Resolution 724 of

2013 issued by COLJUEGOS, establish

that the concession of these games,

classified as “localized”, must be done

through the authorization and signing of

a concession contract with a minimum

of gaming elements and a minimum

for commercial premises, according to

Decree 1905 of 2008.

The requirements for requesting

a concession contract include a

presentation of the previous favorable

concept, issued by the Major of the

Municipality where the premises are

located, according to the Land Zoning

Plan “POT”.

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Operating licenses for Enjoy casinos

LocationCasino Operating Company

Validity term of license or concession

Chile

Antofagasta, Región de Antofagasta

Operaciones El Escorial S.A.

Nov. 11, 2023

Coquimbo, Región de Coquimbo

Campos del Norte S.A

Dec. 11, 2017*

Rinconada de los Andes Región de Valparaíso

Casino Rinconada S.A.

Aug. 29, 2024

Viña del Mar, Región de Valparaíso

Slots S.A. Dec. 31, 2017*

Santa Cruz, Región del LibertadorBernardo O’Higgins

Casino de Colchagua S.A.

Sept. 12, 2023

Pucón, Región de La Araucanía

Kuden S.A. Dec. 31, 2017*

Chiloé, Región de Los Lagos

Rantrur S.A. May 08, 2027

Argentina Mendoza Cela S.A. Lifelong

Uruguay Punta del Este Baluma S.A. Dec. 31, 2036

Colombia San AndrésEnjoy Caribe SpA Sucursal Colombia

Feb. 18, 2021

* Notwithstanding what is indicated in this table, on February 15, 2017, the Superintendence of Gaming Casinos issued Informative Report N° 084, by which it extended the concessions of municipal casinos until the date of commencement of the operation of the new permits.

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Chile

Tourism in Chile is favored because the

country is one of the most geographically

diverse destinations in the region; with

beaches, mountains and lakes, as well

as opportunities to practice a variety of

sporting activities. This diversity earned

the country the World Travel Awards

in 2016 as the best Adventure Tourism

Destination.

Tourism in Chile has benefited from

investments by hotel groups, tour

operators and casinos. In addition,

it is expected to benefit from future

investments in transport infrastructure,

mainly airports and road networks.

At present, Chile is positioned as one

of the countries with the best airport

infrastructures in the region, exceeded

only by Brazil.

National tourism has recently benefited

from lower airline ticket prices, leading

to increased travel within Chile. Despite a

slowdown in the economy, Chileans have

kept travelling on holidays.

International arrivals to Chile in 2016

reached a historic figure of 5.6 million

foreign tourists and a strong growth of

26% compared to 2015, according to

official statistics of the Undersecretariat

of Tourism.

Along with its natural attractions, Chile

is becoming a key shopping destination

for South American travelers, especially

Argentineans, which was reflected by

a 33% increase in arrivals from Latin

American markets compared to 2015.

North America grew by 8% and Europe

by 10%, while arrivals of foreign tourists

from distant countries experienced a 12%

increase compared to 2015.

Regarding tourist accommodation, the

total number of nights has grown at a

compound annual rate of 5.9% between

2011 and 2015. In 2015, the average

domestic price per room (ADR) was

$88,326 with a total occupancy of 64.7%.

HOTEL AND TOURISM INDUSTRY IN LATIN AMERICA

Tourism is one of the industries that has grown the most in the world and Latin

America is no exception. Being part of this industry and contributing to its

development is essential for Enjoy, as one of our purposes is to be a relevant leisure

and entertainment agent worldwide.

* Source: Fedetur’s Barometro, January 2017.

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> Main indicators of Tourism in Chile from January to December 2016 v/s 2015

Arrivals at Tourist Accommodation

Establishments (TAE).

Rooms Ocuppancy Rates

Rooms Ocuppancy Rates

Overnight stays at TEA

ADR (Average Daily Rate)

January through December 2016

Source: Barómetro del Turismo, January 2017 - FEDETUR / Nº22

9,5 millions +3%

40%

+1%

18 millions +3%

+2%

The Chilean hotel sector is growing,

driven by greater development and

strong positioning of the country

by the government tourism agency.

International brands are continually

looking to take advantage of the various

opportunities presented and groups such

as Accor, Hilton and Marriott are seeking

to strengthen their presence in the

country, leading to an increase in hotel

rooms.

Between 2016 and 2018, the number of

accommodation rooms is expected to

increase by 4.9% according to data of

Hoteleros de Chile.

-1%

1%

1%

2% 2%

-1%

0%

1%

2%

3%

4%

5%

3%

TOURIST ACCOMODATION STATISTICS

arr

ivals

check-i

ns

ocup

ati

on

AD

R

ryn A

DR

revenues

% variation Jan. through

Dec. 2016/20155,6

+26%

INTERNATIONAL ARRIVALS TO CHILE

millions of foreign

tourists

growth

growth

72%

57 UF

+24%

FOREIGN CARD TRANSACTIONS IN CHILE

of foreign tourist

spending

expenses made with

foreign credit card

TOURISM EMPLOYMENT

Oct.-Dec. 2016

growth

Oct.-Dec.

2016

creating jobs

industry

Oct.-Dec. 2016

339 mil

+8%

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Uruguay

The tourism industry in Uruguay has

been linked mainly to its beaches and

summer activities, highly valued for their

biodiversity. Montevideo, the capital, has

most of the urban tourism, attracting

various conventions and events in

recent years. The security and the cozy

atmosphere of many of its tourist places

have been highly attractive for visitors

from neighboring countries who choose

to Uruguay as a frequent destination.

The country’s solid infrastructure has

been key to meeting the industry’s

demand. Recent infrastructure

investments have helped ease travel and

attracted more visitors. The international

airport of the capital and the port of

Montevideo, along with the port of

Colonia, receive the largest tourist influx.

The country’s central location in South

America has also eased entry of tourists

through roads that connect it to its three

neighboring countries.

Various hotel operators are investing in

the country to expand their operations,

including Hyatt, Sofitel, Hilton and

Sheraton. Meanwhile, many existing

operators are extending their properties

to meet the rising demand.

In 2016, according to data from the

Ministry of Tourism of Uruguay, this

country reached historical figures with

3,328,450 foreign visitors (363,609

more than the same period of 2015).

Argentine tourists were the main source

of tourism and showed the greatest

growth in 2016 compared to 2015.

2,139,598 visitors came in, i.e. 25.4%

more than the previous seasons, mainly

in summer. 432,442 Brazilian tourists

arrived, showing a slight increase of

0.8% compared to the same previous

period. Chilean tourists were third

place, with a total of 53,950, slightly

higher than the previous year, followed

by 41,466 Paraguayans. Visitors from

other nationalities were 347,765, almost

unchanged from 2015 (from Europe,

North America, Rest of America and

other unidentified regions).

The preferred destinations remain as

Montevideo (29% of visits) and Punta del

Este, which had a growth of 12.1%.

In terms of visitor spending, 41% was

spent in Punta del Este with

US 743,274,100. In second place, the

biggest expenditure was in Montevideo

with US $566,905,651.

In terms of expenditure per nationality,

Argentina made up 64% of the total

(US $1,173,215,212), representing an

increase of 8.8% compared to 2015.

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> Main Figures in Tourism in Uruguay Year 2016

Total visitors Currency income (in thousands of current dollars)

In second place was the Brazilian

expenditure of US $225,426,910, varying

by -2.8%. The highest expenditure

per person was made by Paraguayan

visitors, of

US $1,022.

In terms of income, the following items

stand out: accommodation

US $541,489,835, representing 29.68%,

food, US $443,773,585 (24.33%), and

purchases of US $233,287,638 (12.79%).

Although the average length of stay

in 2016 was 5.5 days - decreasing

by 11% compared to 2015 -, the total

expenditure in dollars increased by 3.3%

and visitor spending by 3.5%.

Argentina

Argentina’s tourism sector is benefitting

from the changes brought about by

the new government, which is strongly

supporting it. Strong marketing

campaigns have also aided in increased

tourist interest in the country.

Forecasted investments in transport and

tourism infrastructure are expected to

keep on attracting visitors.

Recent years have seen positive growth

in arrivals from other Latin American

countries, which represent the greater

portion of total arrivals. In addition, the

arrival of low-cost airlines to the country

is expected to contribute to lower travel prices and further expand the tourism industry.

The country’s diversity of landscapes and varied cultural offerings have permitted a wide range of travel and tourism products and activities. High-quality lodging options and a strong culinary scene, including its renowned vineyards, help position the country favorably and attract tourists from around the world. Furthermore, the arrival of low cost airlines into the country is expected to help reduce travel prices and further

expand the tourism industry.

+25,4% +0,8%

+5,2%

+12,3%

+3,3%

+0,6%

Argentinean 2.139.598

Brazilian 432.442

Chilean 53.950

Total3.328.450

Paraguayan 41.466

3.824.265

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INDUSTRY TRENDS

Trends on Supply

1. Consolidation of tourism destinations

The industry trend has been the

development of comprehensive

entertainment projects, which in

addition to gaming casinos, offer several

new facilities and complementary

services, such as hotels, restaurants

and convention centers. As a result,

cities that host these facilities are being

strengthened as new holiday and urban

destinations, both for national, incoming

and business tourism.

2. Increased supply

Nowadays, , there is a global increase

in the supply of rooms other than the

ones offered by traditional hotels, based

on collaborative economy models

such as Airbnb, which is an internet

platform that connects hosts that have

accommodation for lease with customers

that have that demand, without

additional services. This trend so far has

not affected the occupancy level of hotel

rooms, nor their rates, as they target a

customer segment that is not after the

services and amenities offered by high-

end hotels. In addition, it is challenging -

at least for South America - to overcome

mistrust caused by virtual services.

However, models like Airbnb impel the

traditional hotel sector to continuously

improve its service levels to make a

difference, especially in Santiago de Chile,

where there has also been a significant

increase in the five-star hotel offer.

3. Enhanced gaming technology for

greater interaction

Development and technological

innovation have become fundamental

cornerstones for the Gaming business,

especially in gaming machines, which

have become the most massive product,

offering a wide variety of games that

are conveniently priced for most of

the population. This type of game

increasingly promotes higher gaming

interaction, making it highly attractive

for the different customer segments.

This new technology is influenced by

the Asian culture and designs, which are

always related to good luck.

4. New marketing strategies

Aware of the increasing industry

competition to attract more customers,

the campaigns are moving away from

the traditional format to become an

entertainment experience in themselves,

taking advantage of the features offered

by today’s digital channels.

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Trends in demand

1. Increased demand for entertainment

Independent of economic cycles, the

level of social development achieved by

the region, and mainly by Chile, has led to

greater demands and spending on leisure

and recreation activities.

2. Changes in entertainment habits

The implementation of the new gaming

casinos as integral projects has made

them entertainment options considered

as centers of social entertainment for

the whole family, with multiple offers of

services and fun. On the other hand, their

use has been popularized and expanded,

penetrating new market niches and

different socioeconomic strata.

3. Increased consumer awareness and

expectations

The wider entertainment offer and

possibilities of accessing offers abroad,

has affected the demand. Nowadays,

consumers are more informed and have

developed higher quality expectations

for the offered services.

4. Change in buying habits

In recent years, there has been a change

in buying habits in the hotel sector. On

the one hand, there is less anticipation

of purchase and, in addition, electronic

channels and Social Networks have

been strongly integrated. This is a great

opportunity to take advantage of this

trend and meet the demand.

5. Millennials

In such a dynamic and competitive

sector as tourism, it is essential to

look ahead and seek opportunities to

launch products that are attractive to

new consumer groups. The Millennials,

(generation born between 1978 and

1999) is a segment that has shown

great willingness to connect with other

travelers and that is strongly based on

digital and social channels. It also poses a

challenge for the industry to become an

attractive place to work in the future.

6. Tourism development in Chile and

Latin America

The Chilean government, through

the Undersecretary of Tourism of the

Ministry of Economy and the Law of

Tourism, is implementing a strategy to

encourage the development of tourism in

the country, both national and receptive.

From this date and until 2020, the

industry is expected to have a strategic

nature and priority in the country’s

economic development.

The expectation is for Chile to assume a

tourist leadership in the region, becoming

an acknowledged and admired

destination in all the aspects where it has

distinctive advantages such as natural

beauty, authenticity, cuisine, security,

quality of offer, sustainability and

professionalism. All this, coupled with a

stable political-economic institutionalism

that will contribute to forge a powerful

and valuable identity of Chile as a tourist

destination.In th

is c

onte

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he h

otel

and

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inm

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The company Enjoy S.A., develops its

business through three subsidiaries:

a. The area of management, consulting,

services, tourism operation, casinos,

hotels, dining, and entertainment is

developed through Enjoy Gestión

Limitada. As a business partner, it

provides comprehensive advice for

the management and administration

of gaming casinos, hospitality services

and entertainment. It also advises the

back office of companies Antonio

Martínez y Compañía, Masterline S.A.,

Slots S.A., Campos del Norte S.A.,

Kuden S.A., Operaciones El Escorial

S.A., Inversiones Vista Norte S.A.,

Casino de Colchagua S.A., Casino

Rinconada S.A., Rantrur S.A.

b. Investments and foreign operations

are carried out through its subsidiary

Inversiones Enjoy SpA.

c. The real estate business operation

in Chile is developed through the

subsidiary Inversiones Inmobiliarias

Enjoy SpA.

BUSINESS SEGMENT

The Management of the Company

defined two business segments for the

company, according to its structure and

corporate grid.

a. Operation

b. Investment & Real Estate

The operating segment corresponds to

the consolidation of the subsidiary Enjoy

Gestión Ltda., with subsidiaries that

operate the businesses of gaming, hotel,

entertainment and food & beverages,

etc., located in Chile, as mentioned

above.

The segment real estate + investment

corresponds to the consolidation of

subsidiaries: Inversiones Inmobiliarias

Enjoy SpA, with its subsidiaries, owning

real estate assets in Chile which are

leased to the operating companies in

Chile, and Inversiones Enjoy SpA which

has investments abroad (Argentina,

Colombia, and Uruguay).

GEOGRAPHICAL SEGMENT

a. National

b. International

The geographical segment corresponds

to the physical, geographic location

of point of sales of gaming, hotel,

entertainment and food & beverage, both

in Chile and abroad.

The Company and its subsidiaries have

no income to disclose related to separate

external customers.

All revenue of the companies comprising

the Enjoy group, are made in the country

of operation (Chile, Argentina, Colombia

and Uruguay); no income is earned or

service to markets performed, other than

those described above.

MAIN SUPPLIERS

There are no suppliers that individually

represent, at least 10% of the total

purchases made in the period for the

supply of goods and services.

CUSTOMERS

No company customers represent more

than 10% of its income.

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REAL ESTATE

Through subsidiaries of Inversiones

Inmobiliarias Enjoy SpA, the company

owns the property and buildings where

gaming casinos and entertainment

activities are developed in Chile.

Properties where casinos and

comprehensive projects are located:

» Proyecto Integral Antofagasta,

located in the city of Antofagasta,

Region of Antofagasta (financial

lease; Inmobiliaria Proyecto Integral

Antofagasta S.A.)

» Proyecto Integral Coquimbo, located

in the city of Coquimbo, Region of

Coquimbo (proprietor Inmobiliaria

Proyecto Integral Coquimbo S.A.).

» Proyecto Integral Rinconada, located

in the district of Rinconada, Region

of Valparaíso (proprietor Inmobiliaria

Rinconada S.A.).

» Casino de Colchagua, located in

the district of Santa Cruz, Region of

Libertador Bernardo O’Higgins (leasing

contract of Casino de Colchagua S.A.).

» Enjoy Pucón Casino & Resort, located

in the city of Pucón, Region of La

Araucanía (owner- Inmobiliaria Kuden

SpA.).

» Proyecto Integral Chiloé, located in the

district of Castro, Los Lagos Region

(owner - Inmobiliaria Proyecto Integral

Castro SpA).

» Enjoy Park Lake Hotel, located in the

city of Villarrica, La Araucania Region

(leasing contract).

» Enjoy Puerto Varas Hotel, located in

the city of Puerto Varas, Los Lagos

Region (leasing contract).

Regarding real estate assets abroad, the

company owns the property through

Inversiones Enjoy SpA:

» Hotel and Casino Enjoy Mendoza

(owner).

» Conrad Punta del Este Resort & Casino

(owner).

» Enjoy San Andrés (leasing).

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EQUIPMENT

Operating companies of casinos and

related services are owners of the

machines and gaming equipment

through the company Enjoy Gestión

Limitada, therefore the Company has no

machinery and equipment in its assets.

INSURANCE

All subsidiaries of Enjoy have a

corresponding related insurance, so that

the company has not taken or endorsed

insurance of any kind in its favor.

TRADEMARKS AND PATENTS

The company does not have a significant

dependence of trademarks, patents,

royalties, or other representations

provided by third parties. The brand

Enjoy belongs to Enjoy Gestión Limitada,

a subsidiary of the company.

Total rooms

StarRating

Slot machines/ Gaming tables/ Bingo positions

Restau-rants and bars

Other amenities

Constrareauc- ted 1

Growth Oppor-tunities

Enjoy Punta del Este

294 544/70/- 9 Convention center, Spa, OVO Club, Pool, Shows, Tennis 75.524 m2 103.000 m2

Enjoy Antofagasta 92 842/42/124 10 Convention center, Spa,

OVO Discotheque, Shows, Pool 37.116 m2 20.754 m2

Enjoy Coquimbo 111 919/38/70 7 Convention center, Spa,

OVO Lounge, Shows, Pool 37.220 m2 78.000 m2

Enjoy Santiago 120 1.380/57/100 6 Convention center, Spa,

Pool, Tennis, Outdoor park 35.468 m2 N/A

Enjoy Viña del Mar 60 1.500/68/148 10 Convention center, Spa,

OVO Club, Shows, Pool 34.000 m2 N/A

Enjoy Pucón 1512 527/23/- 7

Convention center, Hotel and apartments, Pool, Shows, Ski, Tour operator

34.518 m2 26.444 m2 +10.321 m2

Enjoy Chiloé 402 4 230/17/36 4 Convention center, Spa,

OVO, Cinema, Shows, Pool 15.799 m2 4.117 m2

Enjoy Mendoza 180 569/24/- 5 Convention center, Spa,

Pool 38.000 m2 N/A

Enjoy Puerto Varas3 91 N/A 3 Convention center, Spa 14.664 m2 N/A

Enjoy Park Lake Villarrica 70 N/A 3 Convention center, Spa 7.500 m2 N/A

Casino Colchagua N/A N/A 240/19/30 N/A N/A 4.000 m2 N/A

Enjoy San Andrés N/A N/A 73/9/- 1 N/A 1.300 m2 N/A

(1) As of September 2016. (2) 121 apartments in Pucón were available. An additional 32 apartments in Chiloé were available. (3) Enjoy started operating Puerto Varas on December 1st, 2016. (4) Undergoing 5 Star certification process.

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RIS

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Casino license renewal

In Chile, municipal licenses and new

licenses granted by the new casino

gaming law are handed over to operators

for defined periods. On August 11 2015,

Law Nº 20,856 was published, amending

Law 19,995 and, among other aspects,

extending the operation of municipal

casinos until December 31 2017, which is

applicable to the current concessions of

Enjoy to operate the municipal casinos of

Coquimbo, Viña del Mar and Pucón.

Notwithstanding the foregoing, on

February 15 2017, the SCJ issued

Information Note Nº 084, by which it

extended the concessions of municipal

casinos, allowing current concessionaires

to operate after December 31 2017,

until the entry into force of the new

permits, i.e. until when the SCJ issues

the certificate attesting to compliance

with all legal and regulatory obligations

necessary to start gaming casino

activities.

In addition, as of January 1 2018, all

municipal casinos will be subject to

the same regulation as the rest of the

industry, delivering 10% of their revenues

to the regional government and at least

10% to the municipality of its respective

commune. It should be noted that Law

Nº 20.856 grants the right to the cities

where municipal casinos are located, to

host casinos for 3 consecutive periods of

15 years each.

The Enjoy Mendoza license has no end

date and will remain in effect as long as the

hotel is rated as five-stars, according to

local regulations. The concession contract

of Enjoy Punta del Este in Uruguay, is

effective until December 31 2036. The

revocation risks of this concession relate to

serious non-compliance with Uruguayan

regulations (for example, non-payment of

the annual fee).

The term of the Colombian Concession

Contract is 5 years, renewable in equal

periods.

Loss of Licenses for

Noncompliance

In accordance with Chilean Gaming

Casinos legislation, gaming permits

issued by the State to operate a casino

may be revoked by the Superintendence

of Casinos (SCJ), based on a justified

decision, in the event that any of the

causes provided for in the casino

legislation occur, which would be

serious cases of noncompliance by

the operator to its license obligation

of strictly adhering to the Casino Law,

its regulations and the instructions

provided by the authority. In case of

noncompliance, the SCJ may initiate

a procedure to revoke the operating

permit; however, the final decision

may subsequently be appealed to the

corresponding Court of Appeals.

Furthermore, the casino concession

agreements under municipal

supervision until 2017, also includes

grounds for termination due to serious

noncompliance with the concessionaire’s

obligations set out therein, which should

be reliably proven by the corresponding

Municipality.

Enjoy S.A., during its 40 years of

experience in the entertainment

industry, has shown comprehensive

regulatory compliance standards;

therefore, it mitigates regulatory risk as

much as possible. Both Enjoy’s Legal

Department and Compliance Area have

designed these compliance standards in

accordance with applicable laws and, in

turn, Internal Audit periodically reviews

their efficiency and implementation.

In Mendoza, the Mendoza government

issues the permit pursuant to applicable

laws, which sets out that the gaming

permit shall be in force, provided the five

star hotel is operational, and it may not

be revoked while the conditions set out

by the legal framework are met.

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In accordance with applicable laws

in Uruguay, any legal or regulatory

noncompliance with the terms and

conditions provided in the concession

agreement shall result in penalties, fines,

or issuance of a closure order. Depending

on the non-compliance, the penalty

could also mean permanently losing the

concession.

The concession agreement and its

amendments set out that the continuous

non-compliance with obligations, both of

the concession agreement and guidelines

provided by regulatory agencies,

may require adopting applicable legal

measures in order to terminate the

agreement with the damages caused by

the non-compliance (without detriment

to the relevant guarantees).

In Colombia, Article 1 of Law 643 of

2001 defines the monopoly of games

of chance as the exclusive power of the

state to exploit, organize, administer,

operate, control, monitor, regulate

and monitor all forms of gambling to

establish the conditions under which

individuals can operate them.

Decree 4142 of 2011, modified by Decree

1451 of 2015, defines Coljuegos as a

state entity whose objective is “the

exploitation, administration, operation

and issuance of gaming regulations

that form part of the monopoly of

gambling and games of chance that

by legal provision are not attributed to

the entity.” On the other hand, Article

2.7.5.2 of the Single Regulatory Decree

1068 of 2015 indicates the requirements

for the operation, so only certain games

of chance can be operated by legal

entities that are authorized by Coljuegos

and sign the corresponding concession

contract .

Under Resolution 2016299991844 of

January 29 2016, Coljuegos authorized

Enjoy Caribe SpA - Colombia Branch, to

operate public monopoly in the modality

of localized. The Concession Contract

was signed after receiving authorization.

The Concession Contract establishes

obligations for the concessionaire,

among which it is worth noting: to

operate authorized games at its own risk;

comply with the current provisions on

games of chance; allow the inspection

of Coljuegos and other auditing

entities; maintain the single guarantee

of compliance in force; send annual

financial statements to Coljuegos. Failure

to comply with any of the obligations

set forth in the concession contract

that seriously and directly affect the

execution of the concession may lead to

the revocation of the operating permit.

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GENERAL MARKET RISKS

Political, Economic, and Monetary Risks

related to Foreign Operations

The company could be exposed to political, economic, monetary, and legal risks related to foreign operations due to entering foreign markets. Risk evolution and perception in other countries, especially in emerging markets, may affect the Chilean, Argentinean and Uruguayan economies, countries where Enjoy currently operates.

Natural Catastrophes and Disasters

There is always the risk of one of Enjoy’s operations suffering damages caused by a force majeure event or by a natural catastrophe. This risk is mitigated, in part, because the company’s insurance policies that cover this type of risk.

Inherent Risk in Gaming and

Hospitality Companies

Negative changes in general economic

conditions, including recession or

economic slowdown, or a rise in fuel,

electricity prices or other transportation

costs, may reduce casino and hotel

earnings, due to fewer average customer

visits or lower average spending per visit.

Regulations

Changes in regulations or contracts

related to the casino industry or in the

interpretation of such rules or contracts

by the administrative authorities,

in addition to alcohol and tobacco

consumption restrictions in Chile have had

a negative impact on casino operations

and, in particular, corporate earnings.

In each country where Enjoy operates,

laws have been passed that restrict

smoking in enclosed places. In response

to these legislation changes in Chile, Enjoy

has built terraces with slot machines,

thus mitigating the negative impact on

revenues

Changes in national labor regulations may

also affect the industry.

Falsification and fraud

All table games are played with tokens

that like real currency, are subject to

the risk of alteration and falsification.

To mitigate this risk, we have security

devices that detect the manipulation

and alteration of tokens, such as CCTV

and ultra violet lights. On the other hand,

token checking is part of the generic

token-exchange procedure. Likewise, staff

is trained in matters such as detection of

false tokens and/or banknotes.

Building development risk

Hotel and Casino projects developed

by the company are exposed to risks

related to the construction and building,

in terms of higher costs of raw materials,

elevated during construction works, and

changes made to the project appearance,

resulting in higher investment. However,

investments made by Enjoy S.A. have

been completed, reducing risk exposure.

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in Colombian pesos. As a result, Enjoy

S.A. had an exposure in its balance

equivalent to M$ 786,982 (COL 3,529

million) at December 31 2016. Significant

fluctuations in the exchange rate of

the Argentinean currency, American

dollar and Colombian peso regarding

the Chilean peso may significantly affect

the value of net investments abroad, as

a result of the conversion adjustment

recorded in Other reserves of Enjoy S.A.

b) Risk of low interest rate

Fluctuations in interest rates may

have a relevant material impact on the

financial costs of the Enjoy S.A. and

its subsidiaries, which have short and

long term debts. The interest of said

debts are expressed in different rates:

variables, fixed, expressed in TAB basis.

Credit risks

Credit risk arises mainly from the

non-fulfillment of obligations by the

counterparty and therefore depends

on the ability to collect the outstanding

accounts receivable and close the

14 pledged transactions. Enjoy S.A.

implemented a centralized credit and

collection department, with defined

credit sales policies, continuously

monitoring the accounts receivable

portfolio, through weekly meetings.

FINANCIAL RISK

Risk of conditions in the financial market

a) Exchange rate risk

The company’s operations and

investments in foreign markets expose

it to the exchange rate variation

between the currencies of the countries

in which it operates and the Chilean

peso. In addition, taking obligations

and liabilities in foreign currencies also

creates exposure risks.

The Company has a joint control

investment in Sociedad Argentina Cela

S.A., operator of Gaming Casino, Hotel

and Food & Beverages in Argentina.

This investment abroad is handled

in the functional currency of the

country, that is, Argentine peso. As a

result, Enjoy S.A. had an exposure in

its balance equal to M $7,363,618 (AR

$ 174 million) at December 31 2016.

Additionally, Enjoy S.A. has investments

in Uruguay through the company

Baluma S.A., operating company of

Gaming Casino, Hotel, Food & Beverage

and tourism. This investment is handled

in dollars. As a result, Enjoy S.A. had

an exposure in its balance equivalent

to M$ 209,643,889 (USD 313 million

at December 31, 2016). Lastly, Enjoy

S.A. has investments in Colombia

through the company Enjoy Caribe SpA

Sucursal Colombia, operating company

of Gaming Casino, Hotel and Food &

Beverages. This investment is handled

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In addition, the most complex cases

are derived to external collection

companies. The Company does not

currently have credit insurance for its

accounts receivable. The current credit

policy of Enjoy S.A. grants a maximum

term of 90 days for their payment. In

some cases, such as renting of rooms

or organizing events with catering, it

requests an upfront payment of 50%.

At December 31 2016, trade and other

receivables amounted to M$ 38,541,717,

M $625,517 over the closing of 2015.

Delinquent customers at closing of

financial statements, amounted to

M $3,443,797 and are accrued

according to Company policies. The

impairment of accounts receivable is

determined by conducting an individual

analysis of each customer, which

considers the periodicity of purchase,

payment behavior and financial analysis

to determine the credit risk of each

client.

The Company has an investment grade

and, at the publication date of this

report, it has a BBB (Stable Trends) risk

rating according to International Credit

Rating Limited Risk Rating Company,

and BBB (in Observation) according to

Humphreys Risk Rating Ltd.

Liquidity risks

Liquidity risk represents the risk that

the Company will not be able to meet

its current obligations. Although the

Company had a negative working

capital of M$ 181,070,386 at December

31 2016, the management believes that

this does not prevent it from meeting

its financial obligations, as it can

generate operating cash flows cash and

enable credit lines to meet its financial

obligations. This working capital

decrease is the consequence of an

increase in current liabilities due to the

short-term obligation to pay for 55% of

the shares of Baluma S.A. for exercising

the PUT option. The Company is

assessing different financing alternatives

to comply with this obligation.

As a result of the nature of the business,

the Company maintains an important

daily and stable cash collection capacity

during the month, which allows it to

manage and predict the availability of

liquidity in a reliable fashion.

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ME MORA BLE

TABLE OF CONTENTS

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Enjoy has a Board of Directors responsible

for the company’s senior management.

The Board is composed of nine members,

who are in place for a period of three years

and may be indefinitely reelected.

The nine members of the Board of

Directors do not hold executive positions

within the company and there are no

substitute members. Mr. Javier Martínez

Seguí plays an executive role in the

subsidiary Enjoy Gestión Ltda.

Javier Martínez Seguí is Chairman of the

Board and Antonio Martínez Seguí is Vice

Chairman. The legal representative is the

Company’s CEO, Gerardo Cood Schoepke,

Taxpayer ID No. 7.968.935-1.

The current directors elected at the

Ordinary Shareholders’ Meeting held on

April 28th 2016, are as follows:

Antonio Martínez Seguí7.040.321-8EntrepreneurIn place from: April 23, 2012

Thomas JenkinForeigner

Entrepreneur In place from: Oct. 23, 2013

Vicente Domínguez Vial4.976.147-3LawyerIn place from: April 23, 2012

Francisco Javier Martínez Seguí7.040.320-kBusiness Administration In place from: July 22, 2015

Ignacio González Martínez7.053.650-1Business AdministrationIn place from: April 23, 2012

Ignacio Guerrero Gutiérrez5.546.791-9Business Administration In place from: April 30, 2014

Octavio Bofill Genzsch7.003.699-1

Lawyer In place from: April 23, 2012

Pier-Paolo Zaccarelli Fasce8.334.529-2

Business Administration In place from: April 29, 2013

Ignacio Pérez Alarcón9.979.516-6Industrial Engineer In place from: April 28, 2016

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REMUNERATION RECEIVED BY THE BOARD OF DIRECTORS

The following tables show the total remunerations received by

the Board of directors for attending Board meetings financial year

2015 and 2016 (In Chilean Pesos $).

Director 2015 2016

Francisco Javier Martínez Seguí* $19.088.183 $58.655.831

Antonio Claudio Martínez Seguí $75.175.421 $55.842.292

Antonio Martínez Ruiz** $45.105.254 $15.459.286

Vicente Domínguez Vial $45.105.254 $42.915.067

Octavio Bofill Genzsch $41.352.282 $35.069.530

Darío Calderón González*** $22.282.291 -

Ignacio González Martínez $41.303.220 $44.227.400

Pier-Paolo Zaccarelli Fasce $45.105.254 $42.936.797

Thomas Jenkin - -

Ignacio Guerrero Gutiérrez $45.114.254 $42.919.887

Ignacio Pérez Alarcón**** - $34.055.713

* Director since July 22, 2015.**Director until April 28, 2016.***Director until July 22, 2015.****Director since April 28, 2016.

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Remuneration received by the

Directors through the subsidiaries

» Director Octavio Bofill Genzsch,

through his company Bofill Mir &

Alvarez Jana, in addition to his per

diem as director, received the sum

of $ 12,691,852 by tEnjoy S.A. and

its subsidiaries for professional fees

during the 2016 financial year, broken

down as follows:

Board Consulting Expenses

The company did not pay any

consulting fees to Board members

during financial year 2016.

» The Chairman of the Board, Javier

Martínez Seguí, in addition to his per

diem as Director, received the sum of $

353,836,665 by Enjoy Gestión Ltda. for

remuneration, representation expenses

and per diem expenses during 2016.

» The Vice President of the Board of

Directors, Antonio Martínez Seguí, in

addition to his per diem as director,

received the sum of $7,103,933 from

Enjoy Gestión for representation

expenses during 2016.

Company $

Operaciones Integrales

Coquimbo Ltda.

5.323.298

Enjoy Gestión Ltda. 1.978.474

Enjoy Consultora S.A. 821.231

Rantrur S.A. 30.746

Operaciones Isla Grande S.A. 29.986

Casino Rinconada SA 4.508.117

Total 12.691.852

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DIRECTORS’ COMMITTEE

As set out under the Chilean Companies

Act 18.046, in Article 50 bis, the company

must have a Board of Director’s

Committee. For this reason, the Ordinary

Shareholders’ Meeting held on April 28,

2016 made the following decisions:

1. It assigned a Budget totaling UF 500

(Indexed Units) for 2016.

2. It agreed on the remuneration paid to

Committee Members, which totaled

UF 50 for each meeting attended.

Current members of the Director’s

Committee are:

Director Tax Id Occupation

Vicente Domínguez Vial 4.976.147-3 Lawyer

Ignacio Pérez Alarcón 9.979.516-6 Industrial engineer

Ignacio Guerrero Gutiérrez 5.546.791-9 Business Administration

The Directors’ Committee is chaired by

Vicente Domínguez Vial. The current

Directors’ Committee was held on April

28 2016.

Messrs. Vicente Domínguez Vial and

Ignacio Guerrero Gutiérrez hold the

status of independent as set forth in

Article 50 of Law Nº 18.046.

The duties of the Directors’ Committee

are set forth in article 50 bis of the Public

Limited Companies Act.

The Committee meets at least four times

a year and its main tasks are, on the one

hand, to review the Company’s financial

statements in order to suggest its

approval or rejection to the Board, prior

to the Shareholders’ Meeting. On the

other hand, it has to review transactions

with related parties.

Likewise, the Committee meets at least

two or three times in the year to address

other matters within its authority.

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The main activities of the Directors’

Committee during the 2016 fiscal year

were:

• In its first meeting on March 30 2016,

the Board of Directors approved the

Company’s financial statements at

December 31 2015. This was attended

by the company’s relevant staff

members and auditors of Deloitte

Auditores y Consultores Limitada, where

they reviewed the annual audit plan

proposed for 2015.

At the same meeting, the Committee

approved to nominate the external

auditors to the Board of Directors, so

that the latter could nominate them to

the Ordinary Shareholders’ Meeting,:

Deloitte and Ernst & Young, in that

order, after an extensive analysis of the

nominations.

In the same way, it approved to keep

nominating the risk rating companies

Humphreys Limited Risk Classifier and

International Credit Rating Classification

Company of Limited Risk to the Board of

Directors.

At that session, the Committee became

aware of the results of the internal audits for

2015 and the proposed audit plan for 2016,

as well as the Compliance Area report.

• On April 25 2016, the Committee

decided to propose to the Board of

Directors the approval of the Quarterly

Financial Statements as of 31 March

2016.

• At the Session of August 22 2016,

the Committee was composed of

Ignacio Guerrero Gutiérrez and Vicente

Domínguez Vial, who were joined by

Ignacio Pérez Alarcón. The Committee

elected Vicente Domínguez Vial as

President.

• In addition, the presentation of the

external auditors was made and it was

agreed to propose the approval of the

Financial Statements at June 30 2016 to

the Board of Directors.

• On November 23, 2016 it was agreed to

propose the approval of the Financial

Statements at September 30 2016 to

the Board of Directors.

• At a meeting held on December 14 2016,

it became aware of the presentation

of the external auditors. In addition,

this session received the report of the

progress of the audit plan and internal

control by the external auditors.

Likewise, the report on Compliance and

Corporate Governance was reviewed.

Remuneration received by

the Committee of Directors

During the reporting period of 2016 and

during 2015, the total remunerations

paid to member for attending Directors’

Committee meetings were as follows.

Advisory services contracted

by the Directors’ Committee

During the financial year 2016, the

Directors’ Committee did not use its

budget for these services.

Director 2015 Remuneration 2015 Remuneration

Vicente Domínguez Vial $7.506.177 $3.916.735

Ignacio González Martínez* $7.506.177 $1.290.603

Ignacio Guerrero Gutiérrez $7.506.177 $3.916.735

Ignacio Pérez Alarcón - $2.626.132

**Member of the Committee until April 28, 2016.

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KEY

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S

Gonzalo Guillermo Ugarte Encinas8.750.713-0PLANNING AND MANAGEMENT CONTROL MANAGERIndustrial EngineerAppointment date: Sept. 30, 2015

José Miguel Melo Pizarro12.244.974-2STRATEGIC DEVELOPMENT MANAGERIndustrial EngineerAppointment date: Sept. 30, 2015

Darío Amenábar Zegers9.121.453-9

CHIEF FINANCIAL OFFICER Business Manager

Appointment date: Oct. 17, 2016*

* F

rom

1 A

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Gerardo Cood Schoepke7.968.935-1CEO Business ManagerAppointment date: Dec. 18, 2014

Percy Albert Ecclefield Arriaza5.162.438-6 COMPLIANCE AND CORPORATE GOVERNANCE OFFICERLawyerAppointment date: July 1st, 2013

César Daniel Romero Sáez14.044.892-3INTERNAL AUDITING MANAGERAuditorAppointment date: Sept. 23, 2015

Sebastián Fernando Truffello Palau

12.722.157-KGAMING BUSINESS

MANAGERBusiness Manager

Appointment date: Sept. 30, 2015

Eliseo Ignacio Gracia Martínez14.167.518-4HOSPITALITY BUSINESS MANAGER Business Manager Appointment date: Sept. 30, 2015

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Santiago Salvestrini Prieto

13.830.519-8MARKETING MANAGER

PublicistAppointment date: Sept. 30, 2015

Rubén Ormazábal Sanhueza

7.848.855-7CEO AT

CASINO CHILOÉ Business Manager

Appointment date: Sept. 30, 2015

Rodrigo Andrés Borquez Soudy

12.720.312-1CEO AT

CASINO PUCÓNBusiness Manager

Appointment date: Sept. 30, 2015

Juan Eduardo Parker Undurraga

10.347.126-5 CEO AT CASINO

RINCONADA Business Manager

Appointment date: Sept. 1st, 2016

Roberto Andrés Mimica Godoy8.954.919-1CEO AT CASINO COQUIMBO Industrial EngineerAppointment date: Sept. 30, 2015

Vicente Figueroa Salas 9.843.281-7 CEO AT CASINO VIÑA DEL MARPublicist Appointment date: Sept. 30, 2015

Santiago Nettle Gnazzo9.021.370-9CEO AT CASINO ANTOFAGASTA Degree in AdministrationAppointment date: Sept. 30, 2015

Eduardo Andrés Sboccia Serrano

8.198.872-2LEGAL SERVICES MANAGER

LawyerAppointment date: Sept. 30, 2015

Juan Eduardo García Newcomb

13.333.115-8 CEO AT ENJOY

PUNTA DEL ESTE BUSINESS MANAGER

Appointment date: Oct. 1st, 2013

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Remuneration of Key executives

The Company’s senior managers and ex-

ecutives received gross global compen-

sation in the period 2015 of M$1,837,391.

The Company’s senior managers and ex-

ecutives received gross global compen-

sation in the period 2016 of M $1,734,689.

Key Executive Compensation

The company does not have a special

compensation plan for key executives,

because they are all covered by the

company’s general compensation plan.

Ariel PérezDNI: 25144275

CEO AT CASINO MENDOZA Degree in Tourism

Appointment date: Jan. 1st, 2015

Héctor Salas Nuñez 15.315.155-5

CEO AT CASINO COLCHAGUA

Bioprocess EngineerAppointment date: March, 16, 2016

Bruno Capello Argentinean Passport AAA982766

CEO AT CASINO ENJOY SAN ANDRÉS

Accountant Appointment date: Feb. 08, 2016

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Name Position Share in Enjoy S.A. % Interest in Enjoy S.A.

Antonio Claudio

Martínez SeguíDirector

i) Partner with 25% stake in Inversiones y Inmobiliaria Almonacid Ltda. which owns 1,116,590,430 shares of Enjoy S.A.ii) Partner with 25% interest in Inversiones Cumbres Ltda. which owns 229,732,525 shares of Enjoy S.A.

Indirectly, through Inversiones e Inmobiliaria Almonacid Ltda. and Inversiones Cumbres Ltda., holds 14,28%.

Francisco Javier

Martínez SeguíDirector

i) Partner with 25% stake in Inversiones y Inmobiliaria Almonacid Ltda. which owns 1,116,590,430 shares of Enjoy S.A.ii) Partner with 25% interest in Inversiones Cumbres Ltda. which owns 229,732,525 shares of Enjoy S.A.iii) 6.483.107 shares

i) Directly holds 0.28% of the sharesIi) Indirectly, through Inversiones y Inmobiliaria Almonacid Ltda. and Inversiones Cumbres Ltda., holds 14.28%

Vicente Domínguez Vial Director No

Octavio Bofill Genzsch Director

Partner with 48.5% interest in Inversiones Asesorías e Inversiones Santa Gabriela Ltda. which owns 64,283 shares of Enjoy S.A. (in custody in Stock Brokerage).

Indirectly, through In-versiones Asesorías and Inversiones Santa Gabriela Ltda., holds 0.001%.

Thomas Jenkin Director No

Ignacio González

MartínezDirector No

Ignacio Guerrero

GutiérrezDirector No

Ignacio Pérez Alarcón Director 3.500.000 0,15%

Pier-Paolo Zaccarelli

FasceDirector

i) 928,383 shares directly (in custody in Stock Brokerage)Ii) Partner with 60.84% stake in Inversiones Porto Cervo Ltda. which owns 31,642,820 shares of Enjoy S.A.Iii) Partner with 2% stake in Planix S.p.A Investments, which owns 31,642,819 shares of Enjoy S.A.

i) Directly 0,04%.ii) Indirectly, through Inver-siones Porto Cervo Ltda. and Inversiones Planix Ltda., holds 0,88%.

Gerardo Cood SchoepkeKey executive

No

Juan Eduardo García

NewcombKey executive

401.646 0,02%

Percy Albert Ecclefield

ArriazaKey executive

i) 731,538 shares directly.

Ii) Partner with 1% stake in Inversiones Paranea

Ltda. which owns 5,210,628 shares of Enjoy S.A.

ii) Directly 0,07%

Indirectly, through Inver-

siones Paranea Ltda., holds

0.002%Eduardo Andrés Sboccia

SerranoKey executive

37.095 0,002%

Gonzalo Ugarte EncinasKey executive

No

Roberto Andrés Mimica

GodoyKey executive

51.933 0,002%

Santiago Nettle GnazzoKey executive

No

Vicente Figueroa SalasKey executive

No

José Miguel Melo PizarroKey executive

No

Rodrigo Andrés Borquez

SoudyKey executive

154.522 0,01%

Sebastián Fernando

Truffello PalauKey executive

537.761 0,02%

Santiago Salvestrini PrietoKey executive

No

Eliseo Ignacio Gracia

MartínezKey executive

40.000 0,0017%

César Daniel Romero

SáezKey executive

No

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PR

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Enjoy S.A. is an open corporation,

which trades its shares in three stock

exchanges: the Santiago Stock Exchange,

the Valparaíso Stock Exchange and the

Chilean Stock Exchange. It is supervised

by the Superintendence of Securities and

Insurance and by the Superintendence

of Gaming Casinos regarding casino

operations that are not regulated by a

Municipal Concession Contract.

The Company is governed by the

principles of corporate governance

set forth in the current legislation and

others adopted as improvements to

Enjoy. These include transparency and

timeliness in the delivery of information,

protection of the rights of our minority

shareholders, fair treatment for all

shareholders, and a Board of Directors

permanently monitoring the actions of

the Administration.

The Board of Enjoy has a Corporate

Governance Code that regulates its

actions and defines its main functions.

On the other hand, the Company has

a Code of Ethics which establishes the

principles, values and conduct that

should govern the performance of its

employees and directors.

In addition, Enjoy has a Sensitive Market

Information Manual which regulates the

delivery of truthful, sufficient and timely

information to the market. It also defines

required behavior of Stock Market

collaborators and directors.

In Enjoy, we also have a Crime Prevention

Model for compliance with Law Nº

20.393, which establishes the criminal

liability of legal persons for the crimes of

money laundering, financing of terrorism,

bribery of a national or foreign public

official and reception of stolen species.

Thus, Enjoy prohibits any act or conduct

that could lead to a criminal charge

under the aforementioned law for acts

committed by its owners, controllers,

key executives, representatives or by

those who perform administrative

or supervisory activities and by any

collaborator of the company or external

representative.

In c

hapt

er 5

of t

his

Rep

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n th

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by th

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of C

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Gov

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Control

Enjoy S.A. is controlled by Inversiones e

Inmobiliaria Almonacid Ltda. with 47.36%

and by Inversiones Cumbres Ltda. with

9.74%.

Name Tax Id % of ownership

Martínez Seguí, María Cecilia 7.040.319-6 25%

Martínez Seguí, Antonio Claudio 7.040.321-8 25%

Martínez Seguí, Ximena María 7.040.322-6 25%

Martínez Seguí, Francisco Javier 7.040.320-K 25%

Name Tax Id % of ownership

Martínez Seguí, María Cecilia 7.040.319-6 25%

Martínez Seguí, Antonio Claudio 7.040.321-8 25%

Martínez Seguí, Ximena María 7.040.322-6 25%

Martínez Seguí, Francisco Javier 7.040.320-K 25%

The shareholders of Inversiones Cumbres Ltda. are the following:

Partners of Inversiones e Inmobiliaria Almonacid Limitada are the following:

Consequently, the Martínez Seguí

brothers, controllers of Enjoy S.A.

through the aforementioned investment

companies, have indirect control with

14.28% each.

On the other hand, Francisco Javier

Martínez Seguí holds directly 0.28%.

Likewise, María Cecilia Martínez Seguí

indirectly holds, through Inversiones

Paranea Ltda., 0.22% of Enjoy S.A.

Ximena Martínez Seguí indirectly holds,

through Inversiones Planix SpA, 1.34%

of the shares of Enjoy S.A. and, through

Inversiones Porto Cervo Ltda., 1.34%.

directly holds 0.02% of the shares of

Enjoy S.A.

Mr. Pier-Paolo Zaccarelli Fasce, spouse of

Ximena María Martínez Seguí, indirectly

owns 0.88% of Enjoy S.A through

Inversiones Porto Cervo Ltda. and

Inversiones Planix SpA. and directly owns

0.04%.

The four children of Ximena María

Martínez Seguí indirectly hold, through

Inversiones Planix SpA, 0.32% of Enjoy

S.A. each.

Mr. Percy Ecclefield Arriaza, spouse María

Cecilia Martínez Seguí, owns 0.07% of the

shareholding property of Enjoy S.A. He

also indirectly owns, through Inversiones

Panarea Ltda., 0.002% of Enjoy S.A.

Lastly, Mr. Eliseo Gracia Martínez, who

owns 0.0017% of the property of Enjoy

S.A., is the son of María Cecilia Martínez

Seguí.

The members of the controlling group do

not have a joint action agreement.

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Identification of major

shareholders

There are no natural or legal persons

other than the controlling shareholder

who, alone or with others who have a

joint action agreement, may appoint a

member of the company’s management

or hold 10% or more of the capital.

Shareholders

At December 31 2016, 144 shareholders

were registered in Registros de

Accionistas de Enjoy S.A.

Identification of 12

Major Shareholders

Name Subscribed Shares

Paid Shares

Ownership Interest (%)

Inversiones e Inmobiliaria Almonacid Ltda. 1.116.590.430 1.116.590.430 47,36%

Compass Small Cap Chile Fondo De Inversión 269.845.099 269.845.099 11,45%

Siglo XXI Fondo de Inversión 234.954.610 234.954.610 9,97%

Inversiones Cumbres Limitada 229.732.525 229.732.525 9,74%

Harrahs International Holding Company Inc. 107.229.242 107.229.242 4,55%

Larraín Vial S.A. Corredora de Bolsa 89.081.417 89.081.417 3,78%

Inversiones Megeve Dos Ltda. 86.675.300 86.675.300 3,68%

Fondo de Inversión Santander Small Cap 63.710.686 63.710.686 2,70%

Bolsa de Comercio de Santiago, Bolsa de

Valores11.993.081 11.993.081 0.51%

Fondo Mutuo Santander Acciones Chilenas 11.406.656 11.406.656 0,48%

BanChile C. de B. S.A. 10.681.319 10.681.319 0,45%

Chile Fondo de Inversión Small Cap 9.231.059 9.231.059 0,39%

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SHARES, THEIR FEATURES AND RIGHTS

Description of the series of shares

Enjoy S.A. has at December 31 2016,

3,008,201,420, shares of which

2,357,459,928 are subscribed and paid.

Enjoy S.A. has a unique series of shares.

Exercise Minimum dividend Additional dividend

2013 $1,86848 per share Not distributed

2014 $0,424248250 per share $0,282832167 per share

2015 $0,7634828816 $0,589885880

On September 20 2016, an Extraordinary

Shareholders’ Meeting of Enjoy S.A.

agreed to increase the capital stock

by $119,444,841,662 divided into

2,357,459,928 ordinary registered

shares of a single share with no par

Important changes in ownership:

Statistical information

> Dividend Policy

value in the amount of $164,996,746,102

divided into 3,008,201,420 registered

common shares , of a single series and

with no par value. The 650,741,492 new

consideration shares are issued without

being subscribed or paid.

Dividend Policy

The Board of Enjoy S.A. annually

proposes to the Shareholders’ Meeting

a dividend distribution that meets the

required legal minimum of 30%. In recent

years this amount has been 50%.

Transaction of shares

During 2016, there were no transactions

of shares of managers, senior executives

and related companies.

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On February 25 2016, through a Essential

Event sent to the Superintendence of

Securities and Insurance, the following

was informed: “According to the

provisions of Article 9 and second

paragraph of Article 10 of Law Nº 18.045,

and duly in power, we hereby report

the essential fact described below: on

Friday, 26 February, Enjoy San Andrés

Casino, located on the Island of San

Andrés, will start operations at the Royal

Decameron El Isleño Hotel. This new

Casino, created as an entertainment

center, has 72 machines of chance and 8

gaming tables like Black Jack, Roulette

and Poker. The above, by virtue of the

signing of a Concession Contract for the

Operation of Localized Gambling and

Games of Chance, between Enjoy Caribe

S.p.A - Sucursal Colombia, subsidiary of

Enjoy Caribe S.p.A - the latter indirect

subsidiary of Enjoy S.A. - and Industrial

and Commercial Company of the State,

Manager of the monopoly of the games

of Luck and Chance - Coljuegos - to

operate a gaming casino on the island of

San Andres, Colombia.

On March 30 2016, through a essential

fact sent to the Superintendence of

Securities and Insurance, the following

was informed: “According to the

provisions of article 9 and second

paragraph of article 10 of Law Nº 18.045,

and duly authorized, we inform on the

essential fact described below: At this

company’s board meeting held today,

it was agreed to convene an Ordinary

Shareholders’ Meeting for April 28 2016

at 10:00 a.m. at the headquarters of

CLUB EL GOLF 50, Av. El Golf 50, Las

Condes, in order to address the following

matters: a) Approval of the report,

balance sheet, financial statements

and the report of external auditors

for the year 2015; b) Presentation of

the dividend policy; c) Distribution

of profits (dividends); d) Election of

Directory. A document containing the

experience and professional profile of the

candidates for director will be available

to shareholders on the website of the

company http://inversionistas.enjoy.

cl from April 25, 2016; e) Remuneration

of Directors for the year 2016; f)

Budget of the Directors Committee and

remuneration of its members for the

year 2016; g) Appointment of external

auditors. The proposal of external

auditors in compliance with Circular

Letter N ° 718, supplemented by Circular

Letter N° 764, both of 2012, issued

by the Superintendence of Securities

and Insurance, will be available to

shareholders on the company’s website

Http://inversionistas.enjoy.cl as of April

11, 2016; h) Election of the Journal where

the company’s publications will be made;

i) Account of the resolutions adopted

by the Board of Directors to approve

transactions referred to in Title XVI of

Law No. 18,046, related transactions;

j) Other matters specific to Ordinary

Shareholders Meetings. “

On 28 April 2016, through a essential

fact sent to the Superintendence of

Securities and Insurance, the following

was informed: “In accordance with

the provisions of Article 9 and second

paragraph of Article 10 of Law Nº 18.045,

and duly in power, I hereby inform you

of the essential fact described below:

the Ordinary Shareholders’ Meeting of

Enjoy S.A. held today, agreed on the

following: a) The report, balance sheet,

financial statements and the report

of the external auditors for the year

2015 were approved; b) The dividend

policy of 2015 profits was approved,

distributing 50% of the profits of that

year, amounting to $ 2,999,800,499. c)

It was agreed to distribute a minimum

mandatory dividend of 30% of profits

for the year 2015, for a total value of $

1,799,880,299, divided into 2,357,459,928

shares, equivalent to $ 0.7634828816

per share. d) It was agreed to distribute

an additional dividend of 20% of profits

for the year 2015, for a total value of $

1,199,920,200, divided into 2,357,459,928

shares, equivalent to $ 0.5089885880

per share. e) It was agreed that the

dividend will be paid as of 27 May

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2016. The dividend will be paid in

national currency to the shareholders

registered in the Company’s Register

of Shareholders as of 20 May 2016.

f) Election the following persons to

integrate the new Board of Directors

of the company for the next three-year

period: i. Antonio Martínez Seguí; ii.

Javier Martínez Seguí; iii. Octavio Bofill

Genzsch; iv. Ignacio González Martínez; v.

Thomas Jenkin; vi. Ignacio Perez Alarcón;

vii. Pier-Paolo Zaccarelli Fasce; viii.

Vicente Domínguez Vial (Independent

Director); ix. Ignacio Guerrero

Gutierrez (Independent Director); g)

The remuneration of the directors

was defined; h) The budget of the

Directors’ Committee and remuneration

of its members was agreed; i) Deloitte

Auditores y Consultores Limitada was

appointed as the external auditing

company for the annual audit of the

Financial Statements for the year 2016;

j) It was agreed for company notices to

be published in the electronic newspaper

of La Tercera (http://www.latercera.

com); k) The resolutions adopted by the

board of directors to approve operations

referred to in Title XVI of Law No. 18,046

were informed; l) Other matters included

in Ordinary Shareholders ‘Meetings were

announced and approved, including

the Annual Management Report of the

Directors’ Committee and the choice

of Risk Classifiers. In accordance with

the provisions of General Rule No. 30,

I shall forthwith submit the Minutes

of the Board in question. Likewise,

in accordance with the provisions of

Circular No. 660 of the Superintendence

of Securities and Insurance, Forms Nº1

containing the information on dividend

distribution are attached. “

On May 19 2016, through a Essential

Event sent to the Superintendence of

Securities and Insurance, the following

was informed: “By means of the present,

in accordance with the provisions of

Article 9 and second paragraph of

Article 10 of Law Nº 18.045, and duly

in power, I hereby report the essential

fact described below: At the Board

meeting held yesterday, it was agreed to

designate Mr. Javier Martínez Seguí as

Chairman of the Board and Mr. Antonio

Martínez Seguí as Vice President. At the

same meeting, it was agreed to nominate

Mr. Ignacio Pérez Alarcón as third

member of the Directors’ Committee. Mr.

Vicente Domínguez Vial (independent

director), Ignacio Guerrero Gutiérrez

(independent director) and Ignacio Pérez

Alarcón were appointed.

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On August 31 2016, through a Essential

Event sent to the Superintendence of

Securities and Insurance, the following

was informed: “Pursuant to articles

9 and 10 of Law Nº 18.045 on the

Securities Market, and duly authorized

for the board, I hereby inform you of the

following essential fact of Enjoy SA: At a

board meeting held today it was agreed

to summon an extraordinary meeting

of shareholders for 20 September 2016

at 17:00 hrs. at the headquarters of

CLUB EL GOLF 50, Av. El Golf 50, Las

Condes, in order to address the following

matters: (i) Increase the share capital

by up to $ 52,059,319,360, or by the

amount determined by the extraordinary

meeting of Shareholders through the

issuance of 650,741,492 new nominative

common shares, of a single series with

no par value; (ii) modify, replace, add or

delete the relevant articles of the bylaws

relative to the agreements adopted by

the board; (Iii) grant powers to the board

of directors to agree to the issuance

and allotment of new cash shares

representing the capital increase, their

registration in the Securities Register of

the Superintendence of Securities and

Insurance, and their subsequent issuance

and placement of the new shares or any

carryover, if applicable, during the legal

preferential option, their subsequent offer

to shareholders or third parties in the

form and term determined by the board

according to its powers; and (iv) adopt

the necessary agreements to legalize and

implement the agreed reforms and to

carry out the other resolutions adopted;

as well as other matters related to the

previous points that are of competence

or interest to the board.

The Company’s controllers reported

signing a non-binding document with

Advent International Colombia S.A.S.

on day 30 of the current month - in

representation of the funds managed

by Advent International Corporation

- to regulate the preliminary bases

on which said investor, subject to the

aforementioned conditions, would

subscribe and pay at a price of $80 per

share all of the new shares issued as a

consequence of the capital increase to

which the controllers would be entitled

for their respective preemptive rights.

The parties negotiate to this date that

the definitive and binding agreements

under which the investor will be obliged

to subscribe and pay for such shares are

the agreed aforementioned conditions. “

On September 2 2016, through

an Essential Event sent to the

Superintendence of Securities and

Insurance, the following was informed:

“Pursuant to provisions of articles 9 and

10 of Law Nº 18,045 on Stock Market

and Ordinary Office N° 21.471 dated 1

September 2016 of that Superintendence,

requesting Enjoy S.A. (the “Company”)

to report the main characteristics of the

agreement described in the essential fact

of the Company dated 31 August, 2016

and state the truthfulness of the article

published in the newspaper “El Mercurio”

entitled “Advent International Fund of

the EE.UU . will take up to 30% interest

in Enjoy”, I come to complement the

essential fact sent by the Company with

the information that follows: Regarding

the agreement’s characteristics, we

can inform that through a document

called Memorandum of Understanding

subscribed between the Company

controllers of (the “Controllers”) and

Advent International Colombia S.A.S. on

behalf of the funds managed by Advent

International Corporation (“AIC”) dated

30 August 2016 (“MOU”), the main terms

and conditions under which AIC acquired

a number of shares equivalent to at least

30% of the shares issued and entitled

to vote in the Company, post capital

increase (the “Shares” and “Transaction”).

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AIC’s acquisition of the Shares will occur

in several ways, namely by subscribing

new shares as a result of the exercise

by AIC of the preemptive rights options

assigned by controlling shareholders

and/or other minority shareholders due

to the capital increase, the acquisition of

shares of the controllers and the market.

The signed agreement is non-binding

and the closing of the Transaction would

be subject to compliance with various

conditions, including the registration of

new shares in the Securities Register,

the Santiago Stock Exchange and the

Central Securities Deposit , the signing

of definitive agreements, completion of

the due diligence process, obtaining the

respective corporate authorizations and

firm underwriting, for AIC, to acquire at

least 30% of the post capital increase

shares. Lastly, it is set forth that at the

closing of the Transaction, AIC and the

Company’s Controlling Shareholders

would enter into a shareholders

agreement that would not constitute

a joint action agreement, a framework

agreement and the definitive documents

that are necessary to improve the

Transaction. It should be noted that these

documents are still under negotiation,

which is why the terms and conditions

thereof cannot be informed yet.

On September 21 2016, through

an Essential Event sent to the

Superintendence of Securities and

Insurance, the following was informed:

“Pursuant to the provisions of articles

9 and 10 of Law Nº 18.045 on the

Securities Market, and duly empowered,

I hereby inform you of the following

essential fact of Enjoy S.A. (“Enjoy”): The

Extraordinary Shareholders’ Meeting

of the Company was held yesterday,

in which it was agreed, among other

matters, to: (i) Increase the capital

of the company to $164,996,746,102,

divided into 3,008,201,420 registered

common shares of a single series with

no par value, through the issuance of

650,741,492 new cash shares, which were

agreed to be placed on the date or dates

determined by the board of directors.

(ii) It was also agreed to empower the

Company’s board of directors to issue,

under the resolutions adopted by the

Board, the new 650,741,492 cash shares

corresponding to the capital increase

agreed and to proceed with their offer

and placement among shareholders

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and their assignees on the agreed,

in accordance with the Law and the

Regulation, and in any case, within the

maximum term of 3 years counted from

the meeting date. (iii) Lastly, it was

agreed to amend the bylaws and adopt

the other resolutions related to the

capital increase. “

On September 23 2016, through

an Essential Event sent to the

Superintendence of Securities and

Insurance, the following was informed:

“Pursuant to articles 9 and 10 of Law

Nº 18.045 on Securities Market, and

duly empowered by the board, I hereby

inform you of the following essential

fact of Enjoy S.A: As of today, Mr. Darío

Amenábar Zegers was appointed Chief

Financial Officer (CFO) of the Company,

who will take office as of 17 October

2016 in place of Mr. Ignacio de la Cuadra

Garretón. “

On November 14 2016, through

an Essential Event sent to the

Superintendence of Securities and

Insurance, the following was informed:

“Today, the company Operaciones

Integrales Isla Grande S.A. (“Isla Grande”),

an indirect subsidiary of Enjoy SA, has

entered into a Sublease Agreement with

Inmobiliaria y Hotelera Puerto Varas SA,

through which Isla Grande will operate

the Hotel Patagónico, located in Puerto

Varas, from 1 December 2016, for a

period of 15 years. Hotel Patagónico

is a five-star property, with 91 rooms,

convention center, spa and restaurants. “

On 23 November 2016, through

an essential fact sent to the

Superintendence of Securities and

Insurance, the following was informed:

“ Today, the controlling shareholders

informed the Board of Directors that the

negotiations with Advent International

Colombia S.A.S. on behalf of funds

managed by Advent International

Corporation have been suspended

pending further clarification of the

process of granting operating licenses for

gambling casinos in municipalities where

municipal casinos operate, which are

currently under review by the Supreme

Court. That said, ENJOY S.A. keeps the

inscription of the capital increase in

the Superintendence of Securities and

Insurance. “

SUMMARY OF COMMENTS AND PROPOSALS FROM SHAREHOLDERS AND THE DIRECTORS’ COMMITTEE

Main recommendations of the

Committee to shareholders

The Committee, among other tasks,

has to nominate external auditors and

private risk classifiers to the Directory,

and later to the shareholders. Thus, at

the meeting held on March 30 2016,

the Comittee proposed to the Board of

Directors, Deloitte and Erns & Young as

external audit firms for 2016, in that order

of priority.

Likewise, the Committee agreed that the

Shareholders’ Meeting should nominate

the companies International Credit

Rating and the Humphreys Limited Risk

Classifier to the Board of Directors as

Risk Classifiers of the company.

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Tax payer id related party Name of related party Nature of the relation Description of the transaction Country Cur-

rency

Dec. 31, 2016

ThCh$

Efect on income (debt)

credit ThCh$

59.102.800-6 Limari Finances Inc. Common Shareholder Impairment Panamá USD 58.477 (58.477)

77.438.400-6 Antonio Martínez y Cía. III Common Shareholder Impairment Chile Pesos 51.927 (51.927)

99.598.660-4 Casino de Colchagua S.A. Affiliate Sale of management services Chile Pesos 367.029 205.507

99.598.660-4 Casino de Colchagua S.A. Affiliate Collection of management services Chile Pesos 450.640 -

99.598.660-4 Casino de Colchagua S.A. AffiliateReimbursement of expenses incurred

Chile Pesos 1.470 -

99.598.660-4 Casino de Colchagua S.A. AffiliatePayment of reimbursement expenses incurred

Chile Pesos 1.470 -

99.598.660-4 Casino de Colchagua S.A. Affiliate Commercial interest Chile Pesos 52.868 52.868

99.598.660-4 Casino de Colchagua S.A. Affiliate Borrowings Chile Pesos 480.000 -

99.598.660-4 Casino de Colchagua S.A. Affiliate Payment of borrowings Chile Pesos 328.160 -

99.598.660-4 Casino de Colchagua S.A. Affiliate Collection of loans granted Chile Pesos 141.188 -

99.598.660-4 Casino de Colchagua S.A. Affiliate Purchase of services and others Chile Pesos 494 (494)

Extranjera Baluma Holding S.A. Common ShareholderValuation of obligation for PUT 55% Baluma S.A. shares (exchange difference)

EEUU USD 6.638.827 -

Extranjera Casino Grad D.D. Affiliate Exchange difference Croacia Kunas 51.090 (51.090)

Varios Key executives Key executives Increase during the period Chile Pesos 746.645 (746.645)

Varios Key executives Key executives Payment to suppliers Chile Pesos 889.337 -

Extranjera Cela S.A. Joint venture Sale of services and others Argentina ARG$ 1.104.619 1.104.619

Extranjera Cela S.A. Joint venture Colletion of trade receivables Argentina ARG$ 758.714 (758.714)

Extranjera Cela S.A. Joint venture Exchange difference Argentina ARG$ 1.097.699 (1.097.699)

Extranjera Cela S.A. Joint venture Purchase of services and others Argentina ARG$ 6.717 (6.717)

Extranjera Cela S.A. Joint venture Borrowings Argentina ARG$ 50.735 -

78.422.870-3 Inv. e Inmobiliaria Almonacid Ltda. Parent companyAccrual additional dividend year 2015

Chile Pesos 568.406 -

78.422.870-3 Inv. e Inmobiliaria Almonacid Ltda. Parent company Dividend payment Chile Pesos 1.420.829 -

88.403.100-1 Inv. Cumbres Ltda. Parent companyAccrual additional dividend year 2015

Chile Pesos 117.018 -

88.403.100-1 Inv. Cumbres Ltda. Parent company Dividend payment Chile Pesos 292.326 -

10.682.512-2 Jose María Ecclefield Barbera Son of key executive Service delivery Chile Pesos 8.439 (8.439)

10.682.512-2 Jose María Ecclefield Barbera Son of key executive Service delivery payment Chile Pesos 7.389 -

10.682.508-4 Percival Albert Ecclefield Barbera Son of key executive Service delivery Chile Pesos 15.928 (15.928)

10.682.508-4 Percival Albert Ecclefield Barbera Son of key executive Service delivery payment Chile Pesos 16.828 -

77.519.310-7 Transportes Passenger Ltda. Parent company Service delivery Chile Pesos 381.310 (381.310)

77.519.310-7 Transportes Passenger Ltda.Company related to a son of key executive

Service delivery payment Chile Pesos 390.667 -

78.066.640-4 Transportes Quintay Ltda.Company related to a son of key executive

Service delivery Chile Pesos 145.081 (145.081)

78.066.640-4 Transportes Quintay Ltda.Company related to a son of key executive

Service delivery payment Chile Pesos 148.523 -

96.867.820-5 Asesorías e Inversiones Clipper S.A.Company related to a son of key executive

Service delivery Chile Pesos 2.696 (2.696)

96.867.820-5 Asesorías e Inversiones Clipper S.A.Company related to a son of key executive

Service delivery payment Chile Pesos 3.849 -

76.170.190-8 Soc. de Profesionales Molina y Cia. Ltda.Company related to a son of key executive

Service delivery Chile Pesos 137.278 (137.278)

76.170.190-8 Soc. de Profesionales Molina y Cia. Ltda.Company related to a son of key executive

Service delivery payment Chile Pesos 137.278 -

76.569.690-9 Inmobiliaria Bicentenario S.A.Company related to Controller

Leases of offices Chile Pesos 209.776 (176.282)

76.569.690-9 Inmobiliaria Bicentenario S.A.Company related to Controller

Leases of offices payment Chile Pesos 209.776 -

77.780.560-6 Bofill Mir & Alvarez JanaCompany related to a Member of the Parent Company Board

Service delivery Chile Pesos 12.692 (12.692)

77.780.560-6 Bofill Mir & Alvarez JanaCompany related to a Member of the Parent Company Board

Service delivery payment Chile Pesos 18.163 -

RELATED PARTIES TRANSACTIONS

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Investment Policy

Enjoy’ s policy is to invest in the

development and expansion of the

casino and tourism business, both in Chile

and abroad. These investments include

real estate such as land and buildings

required to develop its business activity,

and assets required for its operation,

such as slot machines, gaming tables,

hotel equipment, software, equipment

and other movable property in general.

Investments made by the Company

During 2016, investments were made

mainly regarding the maintenance of

movable and immovable assets, in order

to keep an adequate quality of Enjoy’s

facilities and services and gradually

incorporate new technologies available

for the industry.

Financial Policy

The financial policy is based on obtaining

short and long-term financial resources

with products and structures in line with

the investment made, which include, but

is not limited to, movable and immovable

property leases, bank loans, capital

increases, public debt emissions, and

reinvestment of operating cash flow.

This involves taking into account the

company’s capital structure, long-term

financial plan, operation projections,

commitments undertaken and applicable

restrictions, and cost of debt.

Distributable Profits

At December 31 2016, the Company

had not accrued earnings available for

dividend distribution.

Dividend Policy

In accordance with Article 26 of the

corporate bylaws, dividends shall be paid

out exclusively from the net earnings

generated during the financial year or

from retained earnings on the balance

sheets approved by shareholders.

However, if the company has

accumulated losses during the financial

year, earnings may be mainly used to

absorb losses.

The Board of Enjoy S.A. annually

proposes to the Shareholders a

distribution of dividends that meets the

legal minimum required of 30%. In recent

years this amount has been 50%.

Investment Plans

The Company has pending its investment

plan until the result of the process of

granting the new operating permits for

the current municipal casinos.

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Santiago Stock Market – Bolsa de Comercio de Santiago

Period Quantity (units) Amount ($) Close Price ($)

1st quarter 47.537.189 2.098.800.493 44,99

2nd quarter 37.898.456 1.914.593.381 54,00

3rd quarter 95.355.052 6.426.646.819 68,56

4th quarter 75.877.845 4.695.139.833 57,63

Electronic Stock Market of Chile - Bolsa Electrónica de Chile

Period Quantity (units) Amount ($) Close Price ($)

1st quarter 2.441.788 91.647.841 49,99

2nd quarter 628.000 32.694.800 53,60

3rd quarter 1.003.053 66.160.054 74,00

4th quarter 4.235.339 316.419.504 50,00

Valparaíso Stock Market –Bolsa de Corredores de Valparaíso

Period Quantity (units) Amount ($) Close Price ($)

1st quarter

No transactions were registered through 2016.2nd quarter

3rd quarter

4th quarter

STO

CK

TR

AN

SACT

ION

S

> Stock Exchange

> Share rice evolution vs IPSA

350

300

250

200

150

100

50

0

2010 2011 2012 2013 2014 2015 2016

Enjoy IPSA Index

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CTIV

ITIE

S During 2016, the most significant changes

made in the consolidation exercise to

align the profile of obligations with the

Company’s generation of flows were:

1. In August 2016, a second Line of

Trade Effects was registered with the

Superintendence of Securities and

Insurance (SVS) for a total amount of

20,000 million pesos.

2. In November 2016, a third Line of

Trade Effects was registered with the

Superintendence of Securities and

Insurance (SVS) for a total amount of

30,000 million pesos.

The borrowing policy is framed within

the objective of having the best market

conditions in obtaining loans, for new

investment opportunities or restructuring

of liabilities.

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ESU

LTS Consolidated Income (MM$) Consolidated EBITDA (MM$)

+4%

Source: Financial statement reported to S.V.S. Figures in millions of Chilean pesos (MM$).

• Higher income due to consolidation of

company AMyC - Antonio Martínez y

Cía ($36.511 millions).

• Higher income of Enjoy Pucón, Enjoy

Santiago, Enjoy Coquimbo.

2013

23.3

1914

,7%

2014

53.2

8224

,8%

2015

58.6

1525

,1%

2012

33.5

5523

,2%

2012

144.

413

2013

158.

652

2014

214.

627

2015

233.

238

+17%

Source: Financial statements reported to S.V.S. Figures in millions of Chilean pesos (MM$).

2016

273.

564

237.

053

Wit

ho

ut

AM

yC

EBIT

DA

EBIT

DA

Mar

gin

• Consolidated EBITDA of a 4% over

the one recorded at December 31 2015.

• Chile: superior by $2,655 million, mainly

due to improvement in Santiago,

Pucon and Chiloé.

• EBITDA Margin: 22,4% at December

31 2016, lower than the 25,1% in 2015,

mainly due to the consolidation of

AMyC.

2016

61.1

6122

,4%

27,1

%

Prof

orm

a EB

ITD

A M

argi

n w

ithou

t AM

yC (%

)

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SIN

ESS Enjoy is committed to the principle of

transparency, and since year 2008, our

Company has reported its economic,

social and environmental performance,

being the first company in the casino

industry in Chile to carry out a report of

such characteristics. We are convinced

that managing sustainability from its

connection to the business adds value

to Enjoy and contributes to meet our

challenges for regional growth and

expansion.

This chapter seeks to reflect this view of

sustainable value creation, in the period

from January 1st to December 31, 2016,

sharing our sustainability management

in our operations located in Chile,

Argentina, Uruguay and Colombia.

In order to prepare this document, we

have used the guidelines of the Global

Reporting Initiative (GRI) in its G4

version, which corresponds to the most

widely used sustainability reporting

standard worldwide, incorporating

the GRI Indicators in the ANNEX of

this document. In order to define

the contents, limits and scope of this

report we have chosen the “essential”

conformity option.

Within this chapter we also include the

sustainability information required under

General Rule 386 of the Superintendence

of Securities and Insurance of Chile

(SVS).

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Stakeholder engagement

It is essential for Enjoy to know its

stakeholders and build long term

relationships with them, based on

trust and transparency. Under this

premise, the Company has identified

14 Groups of Interest, which have been

categorized and prioritized based on

their exercisable power and the degree

to which they potentially show interest

in the Company’s strategies, identifying

a total of 6 Strategic Groups of Interest.

Likewise, communication channels have

been defined with these groups, to know

their opinions, expectations and needs

regarding the Company’s operations.

ENJOY’ S SUSTAINABILITY STRATEGY

For Enjoy, positioning itself within the

world’s entertainment leaders means

moving beyond the realm of financial

performance. The Company’s vision

is based on long-term relationships,

with a future vision in the creation of

shared value for shareholders, investors,

customers, employees, suppliers and the

communities where we develop

our activity.

In order to carry out this vision, Enjoy

guides its action under a Corporate

Strategy of Sustainability, which is

aligned to the business strategic plan

and that is articulated on the basis of five

dimensions:

Transparent

and ethical

leadership

Responsible

entertainment

and commitment

to our customers

Human

capital

management

Community

development

Sustainable

operation

On a daily basis, the sustainability

strategy is embodied in initiatives that

are driven by different areas of the

Company and -at the same time- in the

monitoring of issues that have been

identified as material or relevant.

(1) The strategy initially defined in 2008 was updated in 2013 based on an internal analysis and the review of context in which tje Company operates.

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Who have we identified as Strategic Groups of Interest groups?

Regulators and inspectors

The Company is mainly related to the

following regulatory and supervisory entities:

Superintendence of Securities and Insurance

(SVS), Superintendence of Gaming Casinos

(SCJ), Financial Analysis Unit (UAF).

» Annual report » Sustainability report » Website enjoy.cl » Trades and response to these trades

Clients

Customers are individuals or companies

that make use of Enjoy’ s comprehensive

entertainment offer (casino, hotel, spa,

restaurants, convention centers).

» Website enjoy.cl » e-mail » Social Networks » Regular customer satisfaction surveys » REALIZA

Non-local suppliers

They are companies that deliver goods and

services to Enjoy, which are fundamental to

the operation of the business.

» Acquisitions department » Website enjoy.cl » E-mail [email protected] » Confidential line » Meetings

How do we communicate with them?

Shareholders

Natural or legal persons that have interest,

along with Enjoy, in the property of an

operation.

» Board Meetings » Directory Committee » Shareholders’ Meetings » Annual report » Sustainability report

Investors

Natural or legal person who has acquired

with shares or negotiable securities of

Enjoy in the Financial Market.

» Investor Relations Area » Quarterly presentation of results » Shareholders’ Meetings » Investor’s website » Annual report » Sustainability report

Employees

They are all workers who are directly

related to the Company, including Chief

Executives, Managers, Assistant Managers,

Administrative Professionals, Supervisors,

Operators, Technicians, and Personnel in

Contact.

» Information panels (digital and traditional) » Sustainability report » Training workshops » SMS messages » E-Mail » Social networks » Meetings » Newsletter “Conecta” » Intranet » Amigo (Kiosk and App) » Confidential line » Labor relations meetings with Trade Unions

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Connecting with what is relevant: Materiality

Material aspects were defined through

a rigorous process of surveying,

systematizing and multidimensional

information analysis, according to the

stages of identification, prioritization and

validation suggested by the GRI.

Material Subjects

» Regional and local contribution » Training, development and talent

management » Work climate, working conditions,

health, occupational safety and welfare

» Internal communications » Sustainable construction » Responsible drinking (alcohol) and

handling of difficult clients » Diversity and inclusion » Energy efficiency and renewable

energies » Operational efficiency » Customer information management

and personal data privacy

Identification Priorization Validation

1 2 3

» Analysis of mainly secondary

information (press review

for year 2016, regulations,

reference management

frameworks -SASB, IIRC-,

industry benchmark at a

global level on sustainability

issues addressed).

» Review of interviews and

focus group results carried

out as preparation for 2015’s

sustainability report.

» Review of clients and

employees studies made last

year.

» A total of 22 material

subjects were obtained and

subsequently submitted to a

prioritization process.

» Internal analysis

based on the criteria

“importance for

stakeholders” and

“impact on the

business”.

As a result a positioning

map of material

subjects was obtained.

» Internal validation

process by the areas

of Communications,

Planning and

Management Control

and Human Capital.

Finally, each material

topic was associated

with a GRI indicator,

which will account

for it.

» Ethical management and crime prevention

» Corporate Governance » Direct economic impact » Responsible Gaming » Taxing of municipal casinos » Environmental management » Growth opportunities » Community participation and

development of beneficial initiatives » Value proposal » Relationship with investors » Labor relations » Safeguarding of customer health and

safety

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> Enjoy 2016

100% Índice de reincorporación a la

compañía luego del permiso

postnatal

615.145 m3 Water consumption

48,6% of women working in the

Company

MMCh$ 49.275.713 Contribution via Gaming taxes,

municipal shares

6.806 Employees

100% Index of reincorporation to the

Company after the postnatal

leave

232.662 GJ Energy consumption

100 Number of Preventive

Internal Audits

49 Number of new

counselors trained in

responsible gaming

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VALU

E P

RO

PO

SAL

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D

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TUO

US

CIR

CLE

OF

PEO

PLE

Enjoy’ s employees and customers are

part of a constantly moving virtuous

circle, which challenges it to attract

new customers, satisfy existing ones by

PEOPLE WHO MAKE A DIFFERENCE

With over 40 years of history and 6,806

employees distributed in five countries,

Enjoy has strived for continuous

improvement of its work coordination,

inspired by a culture of collaboration,

productivity and responsible decision

making.

During 2016, a new Human Capital

Management was created, incorporating

productivity issues into traditional

fields of people management (i.e.

Work Environment, Performance,

Compensation, Employee Benefits,

Occupational Safety and Health, Internal

Communications, among others) , with

special emphasis on management of

work relations, in view of the changes

in regulations that will be presented in

Chile.

> DIVERSITY IN THE ORGANIZATION

6.806 Employees

3.501 Men

3.305 Women

exceeding their expectations, and train

and develop the talent that makes the

former objectives possible.

17 Key executives

69 Managers

130 Adminitratives

326 Professionals

771 Chief of staff

1.858 Operators,

Technicians

3.635 Staff in contact

Number of people by position

Age compostition

3.255 Under 30 years old

1.938 Between 31 and 40 years old

1.105 Between 41 and 50 years old

407 between 51 and 60 years old

98 between 61 and 70 years old

3 Older than 70 years old

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5.198 Chilean

1.020 Uruguayan

390 Argentinean

99 Colombian

99 Other

Number of people by nationality

Number of people by Seniority

75% Of employees have

an indefinite contract

75% Of men have

an indefinite

contract

74% Of women have

an indefinite

contract

3.947 Less than 3

years in the

Company

1.157 Between 3

and 6 years

817 Between 6

and nine years

272 Between 9

and 12 years

613 More than

12 years

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> DIVERSITY IN SENIOR MANAGEMENT POSITIONS AND OTHER MANAGEMENTS THAT REPORT TO THIS MANAGEMENT OR TO THE BOARD

17 Key Executives

17 Men

17 Are Chilean

Age composition

0 Under 30

6 Between 31 and 40 years old

8 Between 41 and 50 years old

2 Between 51 and 60 years old

1 Between 61 and 70 years old

0 More than 70 years old

Number of key executives by Seniority

6 Less than a

year

2 Between 3

and 6 years

4 Between 6

and 9 years

3 Between 9

and 12 years

2 More than

12 years

Age composition

> DIVERSITY IN THE BOARD OF DIRECTORS

9 Directors

9 Men

8 Are

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0 Under 30

0 Between 31 and 40 years old

2 Between 41 and 50 years old

4 Between 51 and 60 years old

2 Between 61 and 70 years old

1 More than 70 years old

Number of key executives by Seniority

3 Less than a

year

5 Between 3

and 6 years

0 Between 6

and 9 years

0 Between 9

and 12 years

1 More than

12 years

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> WAGE GAP

Wage gap per gender Female1 Male2

Key Executives3 100%

Head, supervisor 87% 115%

Professional 76% 132%

Administrative 73% 138%

Operational 84% 120%

1 % female wage gap: gross female salary / gross male salary . 2 % male wage gap: gross male salary / gross female salary. 3 For calculations regarding the “key executives”, executives reported to be the SVS were considered, thus wage gap of male-females of that position cannot be calculated. * Does not include 735 employees under fixed period contracts.

G4 10/ G4 LA 12> ENJOY CHILE

5.368 Employees

2.657 Men

2.711 Women

2.934 Under 30

years old

2.014 Between 30 and

50 years old

410 Older than 50

years old

> ENJOY PUNTA DEL ESTE

1.026 Employees*

579 Men

447 Women

132 Under 30 years old

809 Between 30 and 50 years old

85 Older than 50 years old

Age composition

Age composition

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> ENJOY MENDOZA

369 Employees

240 Men

129 Women

139 Under 30 years old

226 Between 30 and 40 years old

4 Older than 50 years old

G4 10/ G4 LA 12

> ENJOY SAN ANDRÉS

43 Employees

25 Men

18 Women

17 Under 30 years old

26 Between 30 and

50 years old

0 Older than 50 years old

Age composition

Age composition

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Business unit Key executives

Manager/ Assistant Manager

Adiminis-trative

Profe-ssional

Head/Supervisor

Operator/ Technician

Staff in contact

Total

Enjoy Antofagasta 1 5 10 6 92 287 354 755

Enjoy Coquimbo 1 5 17 10 77 271 380 761

Enjoy Viña del Mar 1 4 12 27 133 339 811 1.327

Enjoy Santiago 1 5 11 14 115 279 487 912

Casino Colchagua 0 1 2 3 20 37 76 139

Enjoy Pucon 1 4 13 13 61 212 455 759

Enjoy Park Lake 0 1 3 0 7 32 50 93

Enjoy Puerto Varas 0 4 3 0 15 46 35 103

Enjoy Chiloé 1 2 2 3 36 82 132 258

Enjoy Mendoza 0 5 12 14 56 84 198 369

Enjoy Punta del Este 1 5 37 114 117 182 570 1.026

Enjoy San Andrés 0 1 3 2 5 7 25 43

Enjoy Central 10 27 5 120 37 - 62 261

> ENJOY’S TOTAL WORKFORCE BY TYPE OF POSITION

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> KEY PROCESSES FOR THE HUMAN CAPITAL DEPARTMENT IN 2016

Opening in San Andrés Island, Colombia

Relevant process in terms of attracting, training and keeping talented staff who will be responsbile of delivering the entertainment valu proposal under Enjoy’ s standards. Currently, 80% of employees hired at the beginning of operations remain in their positions.

Takeover of new hotels

The incorporation of Park Lake hotel in Villarrica (January 2016) and Patagónico Hotel in Puerto Varas (December 2016) demanded a high presence of the Human Capital team for a successful integration of the teams at a cultural and operational level, as well as for the adoption of SAP systems, Amigo and Shift Module, and the transfer of both policies and procedures.

Optimal Management of the Workforce

One of the most important challenges of the industry is to reach optimal hiring levels of the work force per operation (that is, to have a mix of suitable contracts related to different working days depending on the operational needs of the business units, which increase between Thursday and Sunday). During 2016, an Optimum Workforce Management Model was implemented, with the main objective of automating shift schedules, based on the systematization of demand models, ensuring a standardized and transversal process in Enjoy, which are expected to

be operational in all units during 2017.

Standardization of Labor Discipline Practices

During 2016, work began on the construction and standardization of the most relevant people management practices. This methodology contemplates the transfer of practices of the different business units, which will allow us to manage work absenteeism through all the chain in a more effectively way (medical licenses, permits, failures, delays, absences when there is no adequate planning of vacations, rotation ). The best work discipline practices will be consolidated in a corporate Book available for the Human Capital areas of Chile in 2017.

Adoption of new technologies

During 2016, the content automation of the work files was carried out, a very relevant aspect in the face of constant inspections by the Labor Inspectorate and the Superintendence of Gambling Casinos, among other entities. Likewise, at the beginning of 2016, a number of functionalities were added to the Amigo mobile app to facilitate employee access to online information on rent and seniority certificates, vacation and leave applications, among others. It also allows managers to perform administrative tasks such as holiday approval or remote shifts, from their mobile phone.

Work relations

With a view to the normative changes experienced in Chile in 2017, in 2016 Enjoy worked on strengthening the Work Relations model, which has the vision of developing collaborative, constructive and respectful relationships. The model essentially contemplates considers of the cornerstones that form the backbone of the model.

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> TRADE UNIONS PER COUNTRY WITH OPERATIONS 1

> NUMBER OF WORK CLAIMS

CHILE ARGENTINA URUGUAY

14 trade unions

2 trade unions

1 trade unions

35% unionization

46,34% unionization

54% unionization

40% workers protected by collective agreement

85,63% workers protected by collective agreement

95% workers protected by collective agreement

1 Because of the recent opening of Colombia, this business unit does not have trade unions or workers protected by te collective agreement.

CHILE

Enjoy Antofagasta 3

Enjoy Coquimbo 0

Enjoy Viña del Mar 3

Enjoy Santiago 1

Casino Colchagua 0

Enjoy Pucón 1

Enjoy Park Lake 0

Enjoy Puerto Varas 0

Enjoy Chiloé 0

Enjoy Central 1

Total 9

ARGENTINA

Received in 2016 5

Addressed in 2016 26

Terminated in 2016 7

· Started in 2016 0

· Started before 2016 7

Received before 2016 and still

pending

14

URUGUAY

Received in 2016 34

Addressed in 2016 15

Terminated in 2016 23

· Started in 2016 7

· Started before 2016 16

Received before 2016 and still

pending

11

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> INDEX OF RETURN TO WORK AND PERMANENCE

> HEALTH AND WORK SAFETY

As part of the joint work with the

Chilean Security Association (ACHS) as

a part of the Preventive Management

Model in Chile, the SafeTI software was

implemented in 2016, which allows

managers as wella as safety and health

inspectors to access online data to

fully control preventive activities,

documentation, and make preventive

management based on a defined work

program and responsible parties for

each activity. This software also allows

storing supplier information, specifically

of contractor companies.

> TOWARDS A CULTURE OF SELF-CARE

CHILE

156 Number of employees

participating in Joint Hygiene

and Safety Committees.

ARGENTINA42* Number of employees participating in the

Emergency Brigades.

12 Number of health and

safety inspectors.

100% Total Index of return Enjoy

100% Total Index of return Enjoy

COLOMBIA1 Number of persons

responsible for risk prevention.

URUGUAY

Members of the Occupational Safety and Health Commission.

16,6% of employees participate in the

Bipartite Commission through its

committees.

40 Managers and Operational Staff.

Members Bipartite Safety Commission: 3 delegates of the guild and 5 of the company.

* *Does not consider person un charge of hygiene and safety.

289 women and 33 men had and

exercised their right to leave for

maternity or paternity

263 women y 2 men

15 womeny 22 men

11 women y 9 men

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> HEALTH AND WORK SAFETY PERFORMANCE INDICATORS

> INTERNAL COMMUNICATIONS

Country Unit Loss ratio Days lost Nº of professional illnesses

Total accidents Accident rate Nº of mortal

victims

Dic 15 Dic 16 Dic 15 Dic 16 Dic 15 Dic 16 Dic 15 Dic 16 Dic 15 Dic 16 Dic 15 Dic 16

CHILE Enjoy Antofagasta 54 42 376 443 1 3 34 45 3,14 4,00 0 0

Enjoy Coquimbo 49 22 486 261 0 0 34 17 3,46 1,6 0 0

Enjoy Viña del Mar 15 22 213 452 0 1 22 14 1,52 1,9 0 0

Enjoy Santiago 87 55 960 519 4 4 26 35 2,35 3,7 0 0

Casino Colchagua 50 3 79 4 1 0 5 1 3,19 0,7 0 0

Enjoy Pucón 21 39 175 601 0 0 11 27 1,29 2,5 0 0

Enjoy Chiloé 56 35 181 100 0 1 21 8 6,53 2,7 0 0

Enjoy Central 49 12 148 28 0 1 2 3 0,66 4,4 0 0

Enjoy Chile 42 38 2.618 2.408 6 10 155 150 2,48 2,40 0 0

ARGENTINA Enjoy Mendoza 6,21 5,6 662 252 0 0 30 26 6,21 5,6 0 0

URUGUAY Enjoy Punta del Este 18,3 24,4 231 297 0 0 119 116 9,4 9,5 0 0

G4/ LA3

The team leader-employee relationship

is the main communication channel with

the company’s employees, because at

Enjoy we foster relationships of trust.

This is complemented by internal media

that combines corporate news with

> TRAINING, DEVELOPMENT AND TALENT MANAGEMENT

Total number of training hours - Enjoy

Training hours for backoffice staff

Trainig hours for front staff

16.0

01

16.4

24

13.0

72 16.8

70

In 2016, Academia Enjoy, the company’

s main e-learning platform, focused its

work on compulsory courses for Enjoy’s

employees. At a training level, the focus

of face-to-face training was on preparing

new hires in Colombia, and on induction

talks to the new operations incorporated

into Enjoy.

Men

Wom

en

local initiatives, focused on audiovisual

content and presented in simple, direct

language. Among them are digital

billboards, SMS, CONECTA Newsletter

(chain level).

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CO

MM

ITTE

D

TO O

UR

CU

STO

MER

S Enjoy understands how important it is

for our Company’s sustainability to have

an attractive value proposal according

to the demands of current and future

customers, and how essential it is to

address their satisfaction. The design

of memorable experiences is part of

a process conducted on the basis of

measurements and studies.

SATISFACTION MANAGEMENT

During 2016 Enjoy reached the chain-

level consolidation of the tool used

to measure and manage customer

satisfaction, based on the premise

that a good management of customer

satisfaction is a predictor of future

income, since a satisfied customer is

more likely to return or recommend.

In 2016, Enjoy sustained the rising trend

in satisfaction levels. The Hospitality area

stood out in these indicators, achieving

over 80% satisfaction and the Casino

area is the business line that achieved the

highest growth during the year.

This tool was developed in 2013

along with the leading global market

measurement company in the hotel and

casino industry. Market Metrix currently

operates in Chile, Argentina and Uruguay

and each business unit can autonomously

and independently measure and manage

using the variables available online, with

a supporting corporate team for specific

analysis.

Our entertainment proposal is based

on the customer. It offers products and

services with a high standard of quality,

satisfaction and safety, in a framework

guaranteeing healthy and responsible

entertainment.

The main actions carried out in 2016

in the area of customer experience

management are highlighted below.

Enjoy casino

> 2016 Market Metrix Evolution - Global Enjoy Casino & Resort*

80

79

78

77

76

75

Jan2016

May2016

Sep2016

Mar2016

Jul2016

Nov2016

Feb2016

Jun2016

Oct 2016

Apr2016

Aug2016

Dec2016

76,6

78,9

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GAMING TABLES SERVICE MODEL

From a job that begun in 2015 at Enjoy

Coquimbo, of redesigning the customer

experience in Gaming Tables, progress

was made during 2016 by implementing

the new Gaming Table Service Model

at Enjoy Santiago. In the case of Enjoy

RESPONSIBLE GAMING

In 2008 Enjoy launched the Program

Jugados por Ti/Vos , a pioneering

initiative in Chile in the promotion of

responsible entertainment. Its central

focus is to provide clients with guidance

and support tools to prevent risky

behaviors associated with gambling.

One of the main milestones of 2016 was

the training of 49 new advisors, who

Coquimbo, its implementation was

a success and in 2016 it is already

integrated into the culture, which is

reflected in the results of Market Metrix.

By 2017, the model will advance towards

its implementation in other units of Chile.

joined the 63 already existing, and the

completion of another training process

at Enjoy Punta del Este is scheduled for

next year.

Likewise, Enjoy continued to share

good practices with other players in

the industry through the Responsible

Gambling Corporation of Chile.

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> Tools of program Jugados Por Ti/Por Vos

Informative Brochures

Phone assistance service

Self-exclusion form

Councelors

» Material

informing on

the program’s

characteristics.

» They seek

to educate

clients about

responsible

entertainment.

» Enjoy employees

who have been

trained to answer

the questions

of clients and

relatives, regarding

the program’s

operation.

» Through this group

of councelors it is

possible to access

the Telephone

Assistance Service

» Document through

which customers

request enjoy

staff to restrict

their access to

the casino, and

be excluded to

future information

of products and

services of the

company.

» Document through

which customers

request enjoy

staff to restrict

their access to

the casino, and

be excluded to

future information

of products and

services of the

company.

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CUSTOMER INFORMATION MANAGEMENT AND DATA PRIVACY

For Enjoy, it is essential to foster a good

communication with customers, in strict

compliance with the regulations of the

corresponding country of operation,

regarding data privacy and information

disclosure. In the context of customer

communication, we ensure that we have

the necessary feedback mechanisms so

that any unsatisfied customer can make a

comment, suggestion and/ or a complaint.

This space contributes to building and

improving future memorable experiences

for our clients.

Country Institutions or regulations that rule formal customer communication

Tools and/or attention procedures and complaint resolution

Chile » Gaming Casino Law (19.995)

» Superintendence of Gaming Casi-

nos (SCJ)

» Consumer law

Operations in Chile have a

management procedure for

claims presented the National

Consumer Service (SERNAC). This

methodology includes: reception of

the complaint, internal investigation,

formal response, and filing by Enjoy.

Uruguay » Law 17.250 of Consumer Defense Complaint and suggestion form

managed by Hotel Direct, who

reviews and responds to all

comments.

Mendoza » Regulations of the Provincial

Institute of Games and Casinos

(IPJyC)

Consumer Book of Complaints.

Referrals and effective use of the Telephone Assistance Service (SAT)

Referrals to SAT Effective use of the service

Type of assistance provided (SAT)

Global 71 29 75% Psychological assistance

13% Financial assistance

12% Informative

0% Legal assistance

Chile 44 27

Punta del Este 1

Mendoza 1

Unknown origin 1

112 Jugados por Ti

Councelors

49 New councelors trained

4 Straining seminars

16 1581

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HEALTH AND SAFETY OF CUSTOMERS

It is very important for our clients to

enjoy an entertainment experience that

they would want to repeat; this is why we

make sure we have safe physical spaces

and protocols that allow preventing

risky situations. We have a Preventive

Management Model, risk matrices,

processes of permanent infrastructure

inspection, and a corporate supervisor

who supervises and implements issues

related to emergency control.

On the other hand, and due to the

increase of serious armed crimes that

occurred in Chile in 2016, a Security

Plan and compliance standards were

approved for all business units.

This process involved reinforcing security

protocols for serious crimes, investing

in technology and physical barriers, and

adapting uniforms so that the public can

better identify security staff.

Finally, in order to deal with the excessive

customer drinking, a potentially

conflictive situation within the casino’s

facilities that damages the experience

of other customers and employees, the

Difficult Customer Management Protocol

is constantly updated to address this

type of situation from the Security Area,

within a framework of respect and care

for the people involved.

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ION For a company like Enjoy, that seeks

to grow and expand its operations, it is

essential to ensure that its activities are

carried out efficiently. This has involved

working from different areas of the

In terms of efficiency, a deal was closed

in 2016 that should generate savings of

4.4 billion pesos in electricity tariffs over

the next five years, due to the change

from being a “regulated customer” to

“free customer”.

» Strengthening controls to reduce

waste in Food & Beverage warehouses.

» Implementing negotiation practices

and Purchasing Policy at Enjoy Punta

del Este and Enjoy Mendoza, in order

to leave them at Enjoy standards.

» Implementing models and procedures

for purchasing, logistics, storage and

handling of waste in the new hotels

Enjoy Park Lake (Villarrica) and Enjoy

Puerto Varas.

OPERATIONAL EFFICIENCY

> Supply chain

» Outsourcing of services that are not

directly related to the business.

» Participation in the procurement

process and subsequent supply chain

for the opening of Enjoy San Andrés

in Colombia, fulfilling all with deadlines

and expectations.

In terms of efficiency, a deal was closed

in 2016 that should generate savings of

4.4 billion pesos in electricity tariffs over

the next five years, due to the change

from being a “regulated customer” to

“free customer”.

Company, and processes associated with

the supply chain, maintenance, resource

management and energy use, among

others.

Payment managment

Planning and managing

Innovation

Simplification

Negociation

Acquisition

and supply

Managment and administration of goods

Managment and administration of services

Information

Sup

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Busi

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> Maintenance

> Normative compliance > Water Management

During 2016, Enjoy worked on

standardizing maintenance within the

Company with a preventive approach.

In the last years, Enjoy has been working

on the preventive book containing the

guidelines of the revisions to be made,

materializing in 2016 the trial period

During this year, we moved towards

greater regulatory compliance,

systematizing the applicable

environmental regulations, which

consider construction, waste, and

emissions from fixed sources. In addition,

a Monitoring and Registration System

was added to follow up and raise alerts

in case of potential non-compliance,

providing information to the Internal

Audit area.

Enjoy is supplied with water through the

municipal supply or supplying companies

in the different countries of operation. In

this area, the year 2016 was marked by

the following initiatives:

ENVIRONMENTAL

of its application in Enjoy Coquimbo.

The grounds behind this work is that

preventive maintenance is between 15%

and 20% more efficient than having

corrective maintenance, safeguarding the

customer’s experience from damage at

all times.

Enjoy Antofagasta Enjoy Santiago Enjoy Park Lake (Villarrica)

A Based on the

requirements of some

neighbors in the

environment closest to the

treatment plant, research

was carried out, leading to

the implementation in 2016

of some improvements

that - although they have

not solved the completely

100% - have made concrete

progress.

Works were started to

expand the treatment

plant corresponding to a

vermicomposting plant

whose waters are reused

for watering the gardens

of this business unit.

This project involved an

Environmental Impact

Statement, with a survey of

flora and fauna information

associated with this sector.

As a result, a plan for the

rescue of Legus and Yacas

was designed. In terms of

flora, the original location

of the plant had to be

modified to rescue all the

carob trees.

A review of its treatment

plant was carried out,

identifying items that need

improvement. A set of

actions are already being

implemented.

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> Main figures of environmental impact1

> Energy efficiency and renewable energies

EThe efficient consumption of energy

is now a global trend not only in

environmental terms, but also due to

its impact on cost reduction for the

company’s operation. Some of the main

initiatives promoted in 2016 are:

Support to “Earth Hour” at a chain

level, event organized by World

Wildlife Fund’s (WWF), which invites

us to turn off the lights for one hour to

contribute to the good use of energy.

Development of a project for the

installation of photovoltaic panels at

Enjoy Santiago, and the installation of

evaporative air conditioning equipment,

environmentally friendly, on the terraces

of Casino Colchagua and Enjoy Santiago.

Total water consumption (m3)

2015 2016

Chile 339.992 437.493

Argentina 92.475 73.260

Uruguay 97.700 104.392

Total 530.165 615.145

Direct gas consumption (L)

2015 2016

Chile 2.838.730 2.839.004

Argentina 157.203 187.000

Uruguay 95.109 94.404

Total 3.091.042 3.120.408

Direct consumption of electric energy (GJ)

2015 2016

Chile 156.317 150.119

Argentina 30.434 29.856

Uruguay 52.757 52.687

Total 239.508 232.662

Total groundwater consumption (m3)

2015 2016

Chile 224.547 211.574

Argentina 0 0

Uruguay 78.998 94.770

Total 303.545 306.344

Direct consumption of petroleum (L)

2015 2016

Chile 308.080 289.097

Argentina 800 750

Uruguay 788.509 867.033

Total 1.097.389 1.156.880

1 We do not have consumption data about Columbia due to its recent opening

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> Waste > Main recycling figures

The waste produced by Enjoy is almost

exclusively household type. In the case

of fats, a specialist removes them for

treatment and subsequent disposal at

sites authorized by the Health Service.

Regarding the recycling of waste, there

are currently only statistics of Enjoy

corporate offices in Santiago, Chile,

which for years have plastic, aluminum

and paper separation containers on all

floors.

In 2016, the garbage collection room

was improved in Enjoy Pucón, allowing

a better disposition of the waste of the

business unit, and vertical hand dryers

were installed in employees bathrooms

at the Corporate offices of Enjoy in

Santiago.

Total volume of residues of grease (m3)

2015 2016

Greases 1.769 1.996

Recycled waste (Kg) 2015 2016*

Paper 264,55 12.855,80

Cardboard 11,14 35,794,80

Newspapers and

magazines

900, 42 420

Plastic 66,93 898

Aluminium 35,7 262,30

Batteries - 197,30

Oils (from food

waste)

- 17,124,29

*Year 2016 includes measurement of business units, unlike 2015, which just considered figures of corporate offices.

> Sustainable Building

Over the last few years, Enjoy has

focused on making both construction

and maintenance sustainable. That is how

when Enjoy has to develop a new project

approaches the construction considering

aspects friendly to the environment,

biodiversity and respect of nearby

communities. It is important to note that

Enjoy Chiloé’s Hotel and Enjoy Puerto

Varas Hotel have both the “Sello S” of

Sustainable Tourism deliverd by Sernatur,

the Chilean National Tourism Service.

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Mem

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STR

ATEG

IC P

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MU

NIT

IES From its inception, Enjoy has sought

to positively contribute to improving

the quality of life of the communities

where its operations are located. Our

commitment to this development has

been shaped by strong long-term

relationships based on respect for the

local culture and its tradition. This has

allowed us to become an important

socio-economic development agent that

generates value for our stakeholders and

the community as a whole.

Our contribution has also focused

on creating employment in these

TOURISM AND DEVELOPMENT

Tourism has a main role as one of the

fastest growing industries in the world

and our region has important cultural

and natural attributes. Enjoy has taken

a leadership position and an active role

in developing and promoting tourism

activity, by participating in all national

and local groups and organizations that

promote tourism in all countries and

localities in which it is present.

In addition, we have taken part in

important initiatives related to the

promotion of quality in the tourism

industry and also in initiatives related to

the industry’s sustainability, among which

are the initiatives of the Chilean National

Tourism Service (SERNATUR):

communities, which has involved a

commitment to develop new and better

labor competencies in new employees,

allowing them to have a higher

employability index in the future.

Part of the contribution of Enjoy to the

cities and regions where it is present

is the payment of taxes. In Chile, the

specific gambling tax in its various

modalities stipulated in the legislation,

is made through the direct payment to

the various Municipalities and Regional

Governments for game and tickets to the

different venues.

» Hotel del Desierto,

Enjoy Antofagasta

» Hotel de la Bahía,

Enjoy Coquimbo

» Hotel del Mar,

Enjoy Viña del Mar

» Hotel del Valle,

Enjoy Santiago*

» Hotel Patagónico,

Enjoy Puerto Varas

» Hotel de la Isla,

Enjoy Chiloé

» Hotel Patagónico**,

Enjoy Puerto Varas

**Through April 2016 **Through Dec. 2016.

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COMMUNITY PARTICIPATION

> Work Inclusion > Local Employment

Enjoy has promoted equal employment

opportunities in its operations for people

with different capacities and, for some

years, it has made several alliances in

different company areas. These initiatives

have also strengthened and create a

sense of belonging and contribution to

society on behalf of members of Enjoy. In

this area, we can highlight:

• Alliance with COANIL on behalf of

Enjoy Coquimbo and Enjoy Chiloé,

which support activities, professional

internship initiatives and their

subsequent definitive incorporation to

the staff.

• Enjoy Chiloé Alliance with the Antú

Kau Differential School of the city of

Castro to incorporate young deaf-

mute people into the work force, to

work in the Hotel area.

• Participation of Enjoy Mendoza in the

Project of Inclusion in Hospitality in

Mendoza for people with different

skills.

Job generation is one of the ways to

contribute effectively to the development

of our communities, especially in the

sectors of the population that present

the greatest difficulties in entering the

formal labor market in regions. During

2016, numerous alliances were held

with different public organizations

and organizations dedicated to the

promotion of employment for young

people, who carry out multiple activities

to train and help develop new skills for

their work performance.

Of note in this area is the work carried

out at Enjoy Pucón with the work of the

inclusion program of the National Service

of Training and Employment (SENCE) “+

Capaz” and internships at Enjoy Chiloé

with different Polytechnic High Schools

of Isla Grande.

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> Contribution to culture > Responsible Gaming Corporation

In the cultural field, Enjoy held a Free

Christmas Concert and open to the

community in the facade of Casino

de Viña del Mar, which featured the

presentation of the National Classical

Orchestra, led by the maestro Mr.

Santiago Meza and the presentation

of the Chilean opera singers Ángela

Marambio, José Azócar, Leonardo Pohl

and Gonzalo Tomckowiack.

Also during 2016, Enjoy Antofagasta

strengthened its joint work with the

Foundation Ruinas de Huanchaca

from directly participating in the

commercial and cultural management

of the esplanade, which allowed having

additional resources to perform cultural

activities in the region.

Rescuing the rich tradition and local

identity, Hotel de la Isla and its restaurant

La Barquera in Enjoy Chiloé were

certified by SIPAM (Ingenious System

of World Agricultural Heritage) to

rescue the cultural identity and agro-

food heritage of the Chiloé archipelago,

thanks to a collaboration agreement with

the Ministry of Agriculture to support

the various initiatives related to this

signature.

As a founding partner of the Responsible

Gambling Corporation of Chile, a non-

profit organization that groups different

sectors around the development,

research and promotion of good

practices of Responsible Gambling in

our country, during 2016 Enjoy kept

supporting and participating in the

different activities that took place during

the year. Among these, the second

International Seminar on Responsible

Gambling was held, with the participation

of prominent specialists, authorities and

casino operators.

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> Support to Guilds and organizations

CHILE (Through Enjoy S.A.)

FEDETUR - Chilean Tourism Companies Federation

Turismo Chile

Acción RSE

Pacto Global de Naciones Unidas

Hoteleros de Chile

Responsible Gaming Corporation of Chile

*Carmen Luz Castro, Secretaria

Enjoy Antofagasta The Chamber of Commerce, Services and Tourism

of Antofagasta

Manufacturers Association of Antofagasta - AIA

Member of Antofagasta Bureau

Ruinas de Huanchaca Foundation

*3 Directors Enjoy

Enjoy Coquimbo Local Tourism Corporation of the Municipality of Coquimbo

*Roberto Mimica, President

Cidere Coquimbo

Enjoy Viña del Mar Manufacturers Association of Valparaíso (ASIVA)

The Chamber of Commerce of Valparaíso (CRCP)

Enjoy Santiago Asociación Gremial de Turismo Aconcagua

Tourism Association of Aconcagua

Enjoy Pucón The Chamber of Tourism of Pucón

The Chamber of Tourism of Villarrica

Enjoy Chiloé The Chamber of Commerce pf Castro

Hoteliers Association of Chiloé

ARGENTINA (Through Enjoy Mendoza)

AEGHA / FEHGRA Asociación Empresaria Hotelero Gastronómica y afines de

Mendoza

AHT Tourism hotels Association (4 and 5 stars Hotels)

*Ariel Pérez, President

ALEARA Argentina’s Trade Union of Gaming, Entertainment,

Recreation, Leisure and Allied Employees

MENDOZA BUREAU Non-profit organization of tourism oriented private

companies of Mendoza City

*Ariel Pérez, Vicepresident

CAMARA HOTELERA DE

MENDOZA

The Chamber of Hotels of Mendoza

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URUGUAY (Through Enjoy Punta del Este)

AHRU Hotels and Restaurants Association of Uruguay

DESTINO PUNTA DEL

ESTE

Non-profit institution, which promotes Uruguay and

Punta del Este in the world, as a destination for vacations,

investments and second homes.

AUDOCA Congress, Fairs, Exhibitions and Allied organizers

Association of Uruguay.

ADM Association of Marketing Managers of Uruguay

DERES Non-profit organization that brings together Uruguay’s

main companies that seek to develop Corporate Social

Responsibility.

CAMARA DE COMERCIO

URUGUAYO BRASILEÑA

The Uruguay-Brazil Chamber of Commerce

CAMARA DE COMERCIO

URUGUAY ESTADOS

UNIDOS

The Uruguay-US Chamber of Commerce

CONVENTION BUREAU

PUNTA DEL ESTE

Non-profit Civil Association that has, among other

purposes, to promote and contribute to the promotion

and diffusion of the city of Punta del Este as a destination

for events and activities related to business and business

tourism.

*Alvaro Elola, Treasurer

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ETHICAL MANAGEMENT AND CRIME PREVENTION

Enjoy’s leadership consists of transparent

action, ethical behavior and strict

regulatory compliance in order to

achieve performance aligned with the

Company’s growth objectives.

In 2016, joint work was consolidated

among areas directly related to

regulatory compliance within the

Company: Compliance and Corporate

Governance, Legal Services, and Internal

Audit. This has made possible to

prevent potential non-compliance risks,

strengthened internal control and the

compliance culture within the Company.

Among the practices and measures

implemented during 2016 in this area in

Enjoy are:> Internal audit and risk management

In 2016, the Internal Audit Area increased

the level of complexity of internal audits

and there was an improvement in the

control environment within Enjoy,

explained mainly by the focus control

exercised by the administration, and

the installation of capabilities that

have improved risk control, which has

resulted in a new improvement of the

results obtained in the different audits

performed.

The Internal Audit area is directly

dependent on the Board of Directors

of Enjoy S.A., thereby ensuring its

independence and that risk management

is being controlled from the senior

management of the Company.

It has a Risk Management Model that

provides relevant information to identify

the risks of the business, raise them,

assess them, define their impact or

importance and their probability of

occurrence, so that it is possible to

manage them properly.

> Corporate Governance Manual

In 2016, the Board of Enjoy S.A.

approved and implemented a

Corporate Governance Manual, which

establishes and regulates all formal

aspects of the Board’s operations.

This manual supplements the different

regulations established by the Chilean

SVS in different matters of Corporate

Governance.

> Ethical Management

Enjoy has an Ethical Management

System based on three interrelated and

complementary pillars:

• A Code of Ethics and Best Practices

unique to all employees.

• A Confidential Line to channel

concerns or complaints via email, in a

private manner.

• A Committee of Ethics and Good

Practices responsible for investigating

complaints.

During the year 2016, Enjoy continued

to develop in-house training for the

company’s employees through the

e-learning course “Ethics and Good

Practices”, and the ethical management

model was developed for its application

in Colombia, adjusting it to its reality.

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> Internal Audit Actions

Number of audits performed at 12/31/2014

Number of audits performed at 12/31/2015

Number of audits performed at 12/31/2016

Enjoy Chile 53 74 81

Enjoy Mendoza 5 5 7

Enjoy Punta del Este 14 16 9

Enjoy San Andrés 3

Total Enjoy 72 95 100

> Model Treaty for the Prevention of Crimes (MPD)

Since 2014, Enjoy has had a Model Treaty

for the Prevention of Crimes (MPD,

Modelo de Prevención de Delitos) related

to Law Nº 20.393, which establishes the

criminal liability of legal persons for the

crimes of money laundering, financing of

terrorism and bribery. In 2016, the crime

of receiving stolen property was added

to this legislation.

The prevention model, its respective

policy, risk matrix and manual (approved

by the Board of Enjoy S.A. at the

proposal of the Directors Committee),

were informed to all the Company’s

personnel. It is a transversal model to

the different companies of Enjoy S.A.

and includes all measures and controls

necessary to prevent their activities

from being used for illegal activities in all

countries where it is present.

The risks detected are contained in a

risk matrix, which is part of the model

mentioned above. The matrix containing

the risks is a tool for internal use only. In

the 10 casinos belonging to the company

(100%), the risks related to corruption

have been assessed.

Prevention of offenses contemplated in Law

No. 19,913. Money Laundering and

Terrorism Financing

Regulatory Compliance Chile,

Argentina, Uruguay and Colombia

Prevention of offenses contemplated in Law No. 20,393. Criminal

Liability of Legal Entities for the crimes of Money Laundering,

Financing of Terrorism, Bribery and Receiving.

Internal company policies and

organizational culture of compliance.

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Some milestones relevant to

strengthening a culture of regulatory

compliance at Enjoy in 2016 have been:

• Training of 2,726 employees in matters

related to the MPD. It should be noted

that most of these employees are

staff of the Gaming area who are in

permanent contact with the customer.

• Dissemination of the Crime Prevention

Model among the suppliers of Enjoy,

so that they have the necessary

information regarding the policy

contained therein.

• Recertification of the Model Treaty

for the Prevention of Crimes (MPD)

for another two years, through a

process carried out by an expert

company registered with the Chilean

Superintendence of Securities and

Insurance (SVS).

• Implementation of the MPD in

Colombia, adjusting it to the

regulations and operational

characteristics of that country,

which implied a thorough study of

the regulations, designing a model

according to this legislation, in addition

to incorporating a compliance officer

and training staff that works in the San

Andrés operation.

• Launching of a new e-learning course

for collaborators, in the area of crime

prevention, which had more than 90%

approval.

> Compliance Officers > Compliance control panel

The Compliance Officer is a partner who

represents the Compliance Management

in each operation and is responsible

for coordinating prevention policies

and procedures, as well as detecting

suspicious operations. During 2016,

the 3rd Annual Meeting of Compliance

Officers was held, an event that allowed

reviewing procedures and exchanging

good practices.

Given the high level of regulation to

which the industry in which the Company

operates and the great number of

regulations to be protected, one of

the main milestones for regulatory

compliance in 2016 is the implementation

of a Control Panel of Compliance.

This panel has allowed Enjoy, and

especially the Committee of Directors,

to emphasize the state of normative

compliance within the organization in all

its dimensions: its main challenges, the

contingencies faced by in this area, areas

that need improvement and training

to be implemented in the various legal,

administrative and operational processes

of the Company.

In 2

016,

Enj

oy c

ontin

ued

to s

tren

gthe

n its

mec

hani

sms

to c

ompl

y w

ith th

e Fi

nanc

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sis

Uni

t (Ch

ilean

UAF

) re

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tions

, int

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l pol

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s in

this

are

a an

d th

e pr

even

tion

of

crim

es o

f mon

ey la

unde

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, fina

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terr

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m, b

ribe

ry

and

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iver

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.

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Indicators of accountable aspects

Analysis and indicators on

matters that are subject to

inspection by the different

auditing agencies in the

different countries where

the Company is present.

Indicators of the status of accounting in process

Analysis and indicators

on the status of progress

and results of different

audits carried out by the

relevant agencies to the

different operations of

the Company.

Indicators of status of trials

Analysis and indicators

on the state of progress

of any legal action in

which the Company is

involved.

> “Crime Prevention” Actions

2.726 Number of employees trained in the prevention of money laundering and financing of terrorism in 2016

91% of total employees to train, who were trained in money laundering prevention and terrorist financing

Talks UAF in Chile were conducted under e-learning

13 Talks UAIF Uruguay

5 Talks UAIF Argentina

2 Crime prevention talks Colombia

21 3

SU

ST

AIN

AB

LE

D

EV

EL

OP

ME

NT

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> “World Check One” > Prevention of money laundering and terrorist financing

During 2016, we continued working with

“World Check One” to comply with due

diligence in getting to know customers

and avoid any inconvenience related to

customers with “PEP” status (“Politically

Exposed Person” ) or is in any way linked

to terrorism, according to international

listings.

This tool has been very supportive for

Compliance Officers.

“World Check One” is a dynamic

database, provided by Thomson Reuters,

which covers over 240 countries and

100,000 sources of information.

All the countries in which Enjoy operates

have a body responsible for controlling

money laundering and terrorist financing

crimes. In Chile, the Financial Analysis

Unit (UAF), has determined different

obligations to companies to prevent

Crimes involving the recording and

reporting of suspicious transactions. In

Argentina, it is the Financial Information

Analysis Unit (UAIF), in Uruguay it is the

Financial Intelligence Unit (UIF) and in

Colombia, it is the UIAF and Coljuegos.

The Prevention of money laundering

and terrorist financing crimes is based

on two pillars: customer knowledge and

suspicious transaction reporting, which

allow the analysis and identification of

suspicious money laundering or terrorist

financing operations to be reported to

the relevant authority . In 2016, Enjoy

advanced in reissuing the prevention

manual to adapt to the corresponding

law in each country and the current

contingency.

Knowledge of customer

Operations log

Suspicious transaction

report

SU

ST

AIN

AB

LE

D

EV

EL

OP

ME

NT

Analysis

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ECO

NO

MIC

PER

FOR

MA

NC

E A

ND

ITS

IMPA

CT O

N F

IGU

RES

The indicators for 2016 show the growth

of operating results and the effectiveness

of the strategies promoted by the

Company during the previous periods.

MMCh$ 2015 2016

Revenue $233.237 $273.564

Assets $635.528 $574.672

EBITDA $58.615 $61.161

Direct economic value generated (figures expressed in MMCh$)

2014 2015 2016

214.

626

233.

237

273.

564

Retained and distributed economic value year 2016 (Ch$)

$51.864.076 retained economic value

$221.700.258 economic value distributed

SU

ST

AIN

AB

LE

D

EV

EL

OP

ME

NT

2

016

A

nn

ual R

ep

ort

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Operating expenses (Ch$) 70.636.801

Sales costs 45.337.110

Expenses for basic services 18.085.591

Maintenance expenses 5.768.846

General expenses 1.445.254

Salaries and employee benefits (Ch$) 70.415.177

Payment to capital suppliers (Ch$) 22.427.103

Financial costs 16.898.519

Dividends paid 5.528.584

Paid income (Ch$) 57.707.887

Income tax 5.539.822

Gaming tax, municipal interest 49.275.713

Property tax 1.746.380

Taxes and licenses 1.145.972

Investment in communities (Ch$) 513.290

Total (Ch$) 221.700.258

GROWTH OPPORTUNITIES

Today we are undergoing a regional

expansion and we are aware of the

growth opportunities that could

arise for us in the future, since this

certainly contributes to our company’s

sustainability, based on a healthy

economic performance that brings

benefit to all Who are impacted by our

business.

These opportunities have been

materialized this year with the opening of

Enjoy San Andrés, the first Enjoy casino

in Colombia, and with the consolidation

of the hotel business with five star stand

alone operations: Hotel Enjoy Park Lake

and Enjoy Puerto Varas.

SU

ST

AIN

AB

LE

D

EV

EL

OP

ME

NT

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AN

D IN

VEST

MEN

TS W

ITH

OTH

ER C

OM

PAN

IES

ME MORA BLE

TABLE OF CONTENTS

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Inv. Andes Entretención Ltda.

Baluma S.A. (Uruguay)

Enjoy Caribe SpA

0,09%

0,11%

10%

0,01%

0,45%

1,00%

CO

MPA

NY’

S G

RO

UP

STR

UC

TUR

E U

ND

ER E

NJO

Y S.

A.

SU

BS

IDIA

RIE

S A

ND

A

FF

ILIA

TE

S

Belo

w is

a c

hart

sho

win

g t

he e

xis

ting

dir

ect

and

ind

irect

ow

ners

hip

stru

ctu

res

betw

een p

are

nt, s

ub

sid

iari

es,

and

affi

liate

s, a

s w

ell

as

the

rela

tio

nsh

ip a

mo

ng

them

:

Equity market

38,1%

0,02%99,98%

89,44%

75%

70%

70%

70%

90%

100% 63,2%

36,8%

9,7% 47,4% 0,3% 4,5%

Inversiones Cumbres Ltda.

Martinez Family

Harrah´s International

Holdings Company Inc.

Inversiones e Inmobiliaria Almonacid

Ltda.

Enjoy S.A.

Inversiones Enjoy SpA.

Enjoy Gestión

Ltda.

Inversiones Inmobiliarias Enjoy SpA

FIP BPPreffered

shares

99%

99,98% 100% 75%

99,99%

70%

99,55%

99%

99,91%

44,89%

100%

0,02%Enjoy Consultora S.A.

Inv. Vista Norte S.A.

Casino Rinconada S.A.

Inv. y Ser. Guadalquivir S.A.

Operaciones Integrales Chacabuco S.A.

Slots S.A.

10,56%Operaciones Integrales Coquimbo Ltda.

Rantrur S.A.

Masterline S.A. 99% 1%

1%

0,63%

1%

Casino de Colchagua S.A.40%

Kuden S.A. 99%

Operaciones Turísticas S.A.

99,37%

1%O. Int. Isla Grande S.A. 99%

1%Casino de Iquique S.A. 99%

1%Casino de la Bahía S.A. 99%

1%Casino del Lago S.A.99%

1%Casino del Mar S.A. 99%

1%Casino de Puerto Varas S.A.

Antonio Martínez y Cía.

99%

0,75%99% Op. El Escorial S.A.

46,54% Casino Grad d.d (Croacia)

53% Cela S.A. (Argentina)

90% Yojne S.A. (Argentina)

100% Baluma Cambio S.A. (Uruguay)

Baluma Ltda. (Brasil)

Enjoy Caribe SpA Sucursal Colombia

99,999%

12,5%87,5% Campos del Norte S.A

Latino Usluge d.o.o. (Croacia) IPI Antofagasta S.A.

IPI Coquimbo SpA

Inm. Rinconada S.A.

Inm. Kuden SpA.

IPI Castro SpA.

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OBJECT

Management and business administration

or operations related to the entertainment,

leisure, and tourism, the provision of services

and professional and technical consultancy in

different areas, and investments of all kinds in

tangible and intangible property. To develop the

abovementioned line of business, the Company

may, as a part of its function, administer,

manage or operate gaming casinos, bingo

halls, hotels, food and beverage services, and

any business in general, whatever its nature,

related to entertainment, leisure and tourism.

It can also provide all kinds of professional and

technical consultancy and services of legal,

financial, accounting or commercial nature,

including services of human resources, public

relations, sales management and brokerage,

and IT, among others, which are necessary for

the research, commissioning, and operation

of businesses and projects in general. The

company may also act as a tourism agency,

in promoting and selling tourism products

and entertainment in general, working in the

development, production, sale of media and

advertisement or promotional materials; buying,

selling and booking tickets and earning a fee for

tickets and tourism packages for activities done

by land, sea, air, rivers, seas and lakes, national

and international; the study, implementation,

and promotion of charters and excursions on

its own account or on behalf of a third party,

national or international, hire travel insurance

on its own account or on behalf of a third party;

the production and organization, booking,

purchase and sale of tickets or access to shows,

events and artistic and cultural demonstrations,

social and sports events; the representation

or intermediation, consignment, purchase and

reservation of any right or service related to

travel, tours, hotels, spas and tourism, individual

or collective, anywhere in the world. In addition,

to operate as a tourist agency it may carry

passengers in its own vehicles or others, leased,

in leasing or under any other form, both in Chile

and abroad. Finally, the company may develop,

license and market, on its own account or on

behalf of a third party, all kinds of software,

and generally carry out all the activities

01

aforementioned either through written media,

graphics, technology, computer, electronic, or

any other means; and do any related activity,

currently or in the future with the above; and any

other business agreed upon by the partners.

MANAGERS AND KEY EXECUTIVES

Francisco Javier Martínez Seguí

Antonio Martínez Seguí

Pier-Paolo Zaccarelli Fasce

Percy Ecclefield Arriaza

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW:

Enjoy S.A. participates directly and indirectly

with 99,98% through its direct subsidiary

Inversiones Enjoy SpA with 0.02% in the capital

of the company.

This participation has not changed during the

year.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY

0,63%

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY

Francisco Javier Martínez Seguí: Chairman of the

Parent Board and subsidiary Director.

Antonio Martínez Seguí: Vice-Chairman of the

Parent Board and subsidiary Director.

Percy Albert Ecclefield Arriaza: Corporate

Governance and Compliance Officer and

subsidiary Director.

Pier-Paolo Zaccarelli Fasce: Director of parent

and subsidiary.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY

Commercial current account agreement.

Taxpayer ID 96.976.920-4

Legal status Limited Liability Company

Subscribed capital MMCh$ 50.249

Paid-in capital MMCh$ 50.249

ENJO

Y G

ESTI

ÓN

LIM

ITA

DA

SU

BS

IDIA

RIE

S A

ND

A

FF

ILIA

TE

S

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OBJECT

The object of the company is specified as

follows; A) the real estate business, construction,

operation, development, leasing and / or

management of real estate located in Chile

or abroad, either directly or indirectly, on its

own account or on behalf of a third party,

individually or in association with others; B)

general trade activity, through purchase, sale

or lease of all kinds of goods, properties or

securities, and the provision of services, on

its own account or on behalf of a third party,

individually or in association with others;

especially the commercial exploitation of

casinos and related services such as hotels

and tourism in general, Congress Centers,

restaurants and related activities, which may

operate directly or indirectly through related

companies; c) investment in Chile and abroad,

in any type of goods, financial instruments

and commercial and in particular, in shares or

rights in incorporated companies, through the

subscription and payment of first issue shares,

acquisition of shares or rights of others, and

making contributions for the constitution or

capital increase in companies or associations,

on its own account or on behalf of a third party,

individually or in association with others.

MANAGERS AND KEY EXECUTIVES

Antonio Martínez Seguí

Francisco Javier Martínez Seguí

Percy Ecclefield Arriaza

Pier-Paolo Zaccarelli Fasce

The company has no Executives.

Taxpayer ID 76.001.315-3

Legal status Joint Stock Company

Subscribed capital MMCh$ 13.512

Paid-in capital MMCh$ 13.512

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW:

Enjoy S.A. participates directly with 100%, in the

Company’s capital.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY

1,12%

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

Percy Albert Ecclefield Arriaza: Corporate

Governance and Compliance Officer and

subsidiary Director.

Pier-Paolo Zaccarelli Fasce: Director of parent

and subsidiary.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY

Commercial current account agreement.

02IN

VER

SIO

NES

EN

JOY

SpA

SU

BS

IDIA

RIE

S A

ND

A

FF

ILIA

TE

S

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OBJECT

The object of the company shall be: A) the

real estate business, construction, operation,

development, leasing and / or management

of real estate located in Chile or abroad, either

directly or indirectly, on its own account or

on behalf of a third party, individually or in

association with others; B) general trade activity,

through purchase, sale or lease of all kinds of

goods, properties or securities, and the provision

of services, on its own account or on behalf of

a third part, individually or in association with

others: especially the commercial exploitation

of casinos and related services such as hotels

and tourism in general, Congress Centers,

restaurants and related activities, which may

operate directly or indirectly through related

companies; and C) investment, both in Chile

and abroad, in any type of goods, financial

and commercial instruments and in particular,

in shares or rights in incorporated companies,

through the subscription and payment of first

issue shares, the acquisition of shares or rights

of others, and making contributions for the

constitution or capital increase in companies or

associations, on its own account or on behalf of

a third party, individually or in association with

others.

Taxpayer ID 76.242.574-2

Legal status Joint stock company

Subscribed capital MMCh$ 24.000

Paid-in capital MMCh$ 24.000

DIRECTORS, CEO AND KEY EXECUTIVES:

Antonio Martínez Seguí

Francisco Javier Martínez Seguí

Pier-Paolo Zaccarelli Fasce, CEO

Percy Ecclefield Arriaza

José Miguel Bulnes

The company has no key executives.

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. directly participates with 63,2% in the

Company’s capital.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY

13,03%.

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY:

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

Pier-Paolo Zaccarelli Fasce: Board Director and

subsidiary Director.

Percy Ecclefield Arriaza: Corporate Governance

and Compliance Officer and subsidiary Director.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY

There are no contracts between parent and

subsidiary.

03IN

VER

SIO

NES

IN

MO

BIL

IAR

IAS

ENJO

Y Sp

A

SU

BS

IDIA

RIE

S A

ND

A

FF

ILIA

TE

S

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OBJECT

The object of the Company is to provide

advisory and consultancy services in company

administration and management, especially to

companies whose line of business is hospitality,

tourism and casinos, both domestic and foreign,

to which end the consultancy services are

related to commercial, economic, financial,

technical, accounting, tax, administrative

management, human resources, marketing and

internal control issues of the counseled entities,

including the selection and training of personnel

of advised entities.

DIRECTORS, CEO AND KEY EXECUTIVES:

Antonio Martínez Seguí, President

Francisco Javier Martínez Seguí

Pier-Paolo Zaccarelli Fasce

Percy Ecclefield Arriaza, CEO

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. participa en forma directa con un

0,02% e indirectamente a través de su filial

directa Enjoy Gestión Limitada con un 99,98 %

in the Company’s capital.

Taxpayer ID 76.470.570-K

Legal status Closed Corporation

Subscribed capital MMCh$ 725

Paid-in capital MMCh$ 725

Provides consultancy services to some of the casinos and hotels of Enjoy, both

nationally and internationally, in legal, financial, and administrative areas, and in some

cases, to develop the brand for some businesses.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY:

0,21%.

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

Percy Ecclefield Arriaza: Corporate Governance

and Compliance Officer and Subsidiary CEO.

Pier-Paolo Zaccarelli Fasce: Director of Parent

and subsidiary.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY

There are no contracts held between parent and

subsidiary.

04EN

JOY

CO

NSU

LTO

RA

S.A

.

SU

BS

IDIA

RIE

S A

ND

A

FF

ILIA

TE

S

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OBJECT

The object of the company shall be: capital

investment in all kinds of movable property,

such as rights in all types of companies,

whether commercial or civil, communities or

associations and in all kinds of titles or securities.

To administer, on its own account or on behalf

of a third party, receive income; take part in

other companies, domestic or foreign, of any

kind or legal status, modify and take over their

administration, whichever their line of business.

In addition, the company will aim to, directly

or indirectly, operate restaurants, cafes, bars,

and general premises aimed at the provision

of entertainment and leisure services; as well

as museum management and the creation of

internet sites. In addition, the construction,

operation, give and take in lease or loan, on its

own account or on behalf of a third party, of

hotels, motels, inns, lodging, and others related

to accommodating people and tourism, with

all hotel and tourism facilities. Furthermore, the

creation, organization, management, distribution,

advertising, development, production and sale,

on its own account or on behalf of a third party,

of literary, social, sports, tourism, scientific,

artistic and cultural activities, and all kinds

of events in general. Finally, acquisition, sale,

investment, purchase, sale, exchange, lease,

sublease of real and personal property, or rights

over them, their administration and operation,

construct in them, exploit them, either directly

or through third parties in any form. The sale,

import, export, distribution, consignment,

representation or intermediation in any kind of

change in a property’s ownership or attributes, in

regard to any class of goods or related activity,

now or in the future with the aforementioned;

and any other business agreed by the partners.

Taxpayer ID 99.595.770-1

Legal status Closed corporation

Subscribed capital MMCh$ 6.614

Paid-in capital MMCh$ 1.804

It is the operator of services of Hotel del Desierto: Food & Beverage and other

supplementary services for comprehensive Enjoy Antofagasta project, as spa and

Congress Center.

DIRECTORS, CEO AND KEY EXECUTIVES

Iván Simunovic Petricio, President

Antonio Martínez Seguí

Francisco Javier Martínez Seguí

Eduardo Sboccia Serrano

Juan Carlos Vásquez Pereira, CEO

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. indirectly participates through its

direct subsidiary Enjoy Gestión Limitada with

75% in the capital of the Company.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY

1,95%

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

Percy Ecclefield Arriaza: Corporate Governance

and Compliance Officer parent and CEO of

subsidiary.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY

Commercial current account agreement.

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OBJECT

The corporate object is the exploitation of

Antofagasta Gaming Casino in the terms

established by Law N° 19.995 and its regulations,

for which gambling games, machines, tools and

related services can be developed, authorized in

the respective operating permit or authorized in

the future by the Superintendence of Casinos or

a replacing authority.

DIRECTORS, CEO AND KEY EXECUTIVES:

Iván Simunovic Petricio, President

Antonio Martínez Seguí

Francisco Javier Martínez Seguí

Pier-Paolo Zaccarelli Fasce

Percy Ecclefield Arriaza

Santiago Nettle Gnazzo, CEO

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. directly participates with 0,75%

and indirectly through its indirect subsidiary

Inversiones Vista Norte S.A. with 99% in the

capital of the Company.

SUBSIDIARY INVESTMENT PROPORTION IN

Taxpayer ID 99.597.870-9

Legal statusClosed Corporation subject by legal mandate to regulation by the Superintendence of Securities and Insurance, and inscribed in the Register of Reporting Entities under number 155

Subscribed capital MMCh$ 4.090

Paid-in capital MMCh$ 3.528

It is the gaming casino operator in Antofagasta.

THE ASSETS OF THE PARENT COMPANY

2,46%

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

Percy Ecclefield Arriaza: Corporate Governance

and Compliance Officer of parent and subsidiary

Director.

Pier-Paolo Zaccarelli Fasce: Parent and

subsidiary director.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY

There are no contracts held between parent and

subsidiary.

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OBJECT

Capital investment in all kinds of movable

property, as rights in all types of companies,

whether commercial or civil, communities or

associations and in all kinds of titles or securities.

Manage such investments on its own account or

on behalf of a third party, receive earnings; take

part in other companies, domestic or foreign, of

any kind or legal status; modify, and takeover

their management, whatever their line of

business. In addition, the company will aim to the

direct or indirect operation of restaurants, cafes,

bars, and premises dedicated to the provision

of entertainment and leisure in general, museum

management and the creation and management

of internet sites. In addition, to construct,

operate, give and take on lease or loan, on

its own or on behalf of a third party: hotels,

motels, inns, hostels and other accommodation

related to people and tourism. Furthermore, the

creation, organization, management, distribution,

advertising, development, production and

sale, on its own or on behalf of a third party, of

literary, social, sports, tourism, scientific, artistic,

cultural activities, and all kinds of events in

general. Finally, the acquisition, sale, investment,

purchase, sale, exchange, lease, sublease of

real and personal property, or rights over them,

their administration and operation, construct in

them, on its own account or on behalf of a third

party; exploit, directly or through third parties in

any form. The sale, import, export, distribution,

consignment, representation or intermediation in

any kind of changes in ownership or attributes,

in regard to any class of goods; and any related

activity, now or in the future with the above; and

any other business agreed by the shareholders.

MANAGERS

Antonio Martínez Seguí

Francisco Javier Martínez Seguí

Pier-Paolo Zaccarelli Fasce

Percy Ecclefield Arriaza

Taxpayer ID 96.940.320-K

Legal status Limited Liability Company

Subscribed capital MMCh$ 7.155

Paid-in capital MMCh$ 7.155

It is the service operator for Hotel de la Bahia, providing Food & Beverage services and

other supplementary services for comprehensive Enjoy Coquimbo, including Spa and

Convention Center.

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. participates directly with 10,56%

and indirectly with 89,44 % through its direct

subsidiary Enjoy Gestión Limitada, in the

Company’s capital.

Such participation has not changed during the

year.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY

3,52%.

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

Percy Ecclefield Arriaza: Corporate Governance

and Compliance Officer and subsidiary Director.

Pier-Paolo Zaccarelli Fasce: Director of Parent

and Subsidiary.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY

There are no contracts held between parent and

subsidiary.

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OBJECT

Commercial exploitation of the Casino located

in the city of Coquimbo and its by-products, as

well as the commercial exploitation of dining

rooms, kitchens, bar, boîtes, self-service, cabaret,

discos, and other related services operating in

the aforementioned establishment and generally

all exploitations or acts that are granted or

authorized by the proposal awarded by the

Municipality of Coquimbo, that are related to the

main object aforementioned.

DIRECTORS, CEO AND KEY EXECUTIVES:

Antonio Martínez Seguí, President

Francisco Javier Martínez Seguí

Pier-Paolo Zaccarelli Fasce

Percy Ecclefield Arriaza

Eduardo Sboccia Serrano

Roberto Mimica Godoy, CEO

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. directly participates with 12,5%

and indirectly through its indirect subsidiary

Operaciones Integrales Coquimbo Limitada with

87.5% in the capital of the company.

Taxpayer ID 79.981.570-2

Legal status Closed Corporation

Subscribed capital MMCh$ 428

Paid-in capital MMCh$ 428

It is the gaming casino operator of Coquimbo.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY

0,68%.

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

Percy Ecclefield Arriaza: Corporate Governance

and Compliance Officer and subsidiary Director.

Pier-Paolo Zaccarelli Fasce: Director of Parent

and Subsidiary.

Eduardo Sboccia Serrano: Legal Services

Manager parent and subsidiary Director.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY

No existe relación comercial entre matriz y filial.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY

There are no contracts held between parent and

subsidiary.

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OBJECT

The object of the Company is the operation of

a casino in the town of Rinconada, Los Andes

Province, located in the Region of Valparaiso,

pursuant to the provisions of the law 19.995 and

in its regulations, as well as providing, either

directly or through third parties, complementary

services to the operation of such casino games

such as restaurants, bars, theaters and events,

currency exchange and, in general, all other

related a services allowed by the law and

regulations mentioned above.

DIRECTORS, CEO AND KEY EXECUTIVES

Antonio Martínez Seguí

Francisco Javier Martínez Seguí

Percy Ecclefield Arriaza

Ricardo Salguero Lesure

Jeffrey Salguero

Juan Eduardo Parker Undurraga, CEO

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. indirectly participates through its

subsidiary Enjoy Gestión Limitada with 70% in

the Company’s capital.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY

2,30%.

Taxpayer ID 99.598.900-k

Legal statusClosed Corporation subject by legal mandate to the regulation of the Superintendence of Securities and Insurance, inscribed in the Register of Reporting Entities under number 176

Subscribed capital MMCh$ 575

Paid-in capital MMCh$ 575

Is the Gaming Casino operator in Rinconada.

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

Percy Ecclefield Arriaza: Corporate Governance

and Compliance Officer of parent and subsidiary

Director.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY

No hay contratos entre matriz y filial.

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OBJECT

The object of the company will be to: a) make

investments in property, tangible or intangible,

corporate shares, rights in other companies,

bonds, commercial paper and other securities;

manage, transfer and exploit the earnings

produced; b) invest in real property, tangible or

intangible, urban or rural; manage, transfer, use

them and collect earnings, being able to, divide,

divide into lots, urbanize and make buildings on

them; c) construct and operate all all kinds of

water supply and irrigation networks, including

construction of pipes or ducts, construction

and operation of pumping stations, measuring

centers, storage tanks; provide and sell water

and provide all kinds of services related to

the construction and operation of pipelines,

pumping stations, measuring centers, storage

tanks and in general, any other accessories for

the design, engineering, transportation, supply

and sale of water. To fulfill its social purpose, the

Company may participate in other companies,

whatever their nature; perform activities or

investments decided by their partners, and,

in general, perform all acts and enter into all

contracts necessary for the stated purposes and

development of company objects.

DIRECTORS, CEO AND KEY EXECUTIVES:

Antonio Martínez Seguí

Francisco Javier Martínez Seguí

Percy Ecclefield Arriaza

Ricardo Salguero Lesure

Jeffrey Salguero

Juan Eduardo Parker Undurraga, CEO

Taxpayer ID 76.837.530-5

Legal status Closed corporation

Subscribed capital MMCh$ 2.211

Paid-in capital MMCh$ 2.211

It is the company in charge of supplying water to the comprehensive project Enjoy

Santiago.

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. participates indirectly through its

subsidiary Enjoy Gestión Limitada with 70% in

the Company’s capital.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY

0,43%.

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

Percy Ecclefield Arriaza: Corporate Governance

and Compliance Officer and subsidiary Director.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY

There are no contracts held between parent and

subsidiary.

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OBJECT

Capital investment in all kinds of movable

property, and rights in all kinds of businesses,

whether commercial or civil, communities

or associations in any kind of securities and

marketable securities. Manage these investments

directly or through a third party, earn income;

form part of other foreign or domestic

businesses, of any type or legal status, modify

and assume management thereof, whatever its

line of business. The company shall also, directly

or indirectly, operate restaurants, cafeterias,

bars and other establishments that provide

entertainment and leisure services, administer

museums, create and manage websites. Build,

operate, lease, let, or rent, directly or through a

third party, hotels, motels, hostels, lodges, and

other activities related to accommodations and

tourism, with all the hotel and tourism services.

Create, organize, manage, communicate,

advertise, produce, and sell, directly or through

a third party, cultural literary, social, sporting,

tourist, scientific, artistic activities and other

types of events in general. Perform the

acquisition, disposal, investment, purchase, sale,

exchange, let, sublet immovable and movable

property, or rights thereto, manage and use or

build on the property, directly or through a third

party; in whatever way possible. Purchase, sell,

import, export, distribute, consign, represent,

or act as broker of any type, make changes in

ownership or its functions, regarding any type

of property; and any related activity now or in

the future; and any other business agreed by

shareholders.

DIRECTORS, CEO AND KEY EXECUTIVES

Antonio Martínez Seguí

Francisco Javier Martínez Seguí

Percy Ecclefield Arriaza

Ricardo Salguero Lesure

Jeffrey Salguero

Alejandra Álvarez González, CEO

Taxpayer ID 76.141.988-9

Legal status Closed corporation

Subscribed capital MMCh$ 100

Paid-in capital MMCh$ 1

It is the service operator at Hotel del Valle, Food & Beverage and other services for the

comprehensive project Enjoy Santiago, such as spa and restaurants.

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. participates indirectly through its

subsidiary Enjoy Gestión Limitada with 70% in

the Company’s capital.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY

-2,83%.

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

Percy Ecclefield Arriaza: Corporate Governance

and Compliance Officer and subsidiary Director.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY:

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY:

There are no contracts held between parent and

subsidiary.

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OBJECT

The object of the company is to purchase, sale,

lease, sublease, marketing, import and export,

in general, games of chance or “slot machines”,

spare parts and all accessories for their use,

enjoyment, administration and right to exploiting

by the Municipal Casino of Viña del Mar, all

in accordance with the tender rules for the

concession and the corresponding concession

contract.

DIRECTORS, CEO AND KEY EXECUTIVES:

Antonio Martínez Seguí

Francisco Javier Martínez Seguí

Pier-Paolo Zaccarelli Fasce

Percy Albert Ecclefield Arriaza

Vicente Figueroa Salas, CEO

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. participates indirectly through its

direct subsidiary Enjoy Management Limited

with 90% in the Company’s capital.

Taxpayer ID 96.907.730-2

Legal status Closed corporation

Subscribed capital MMCh$ 3.421

Paid-in capital MMCh$ 3.421

Owner of the slot machines in Viña del Mar Casino under an operation and

maintenance contract. The company makes these machines available to the license

holder of Casino Vina del Mar, Antonio Martinez y Cia., in exchange for 35.75% of the

monthly profit generated by the operation of the referred machines, after deducting

municipal interest.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY

1,01%

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

Percy Ecclefield Arriaza: Corporate Governance

and Compliance Officer and subsidiary Director.

Pier-Paolo Zaccarelli Fasce: Director of Parent

and Subsidiary.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY

Commercial current account agreement.

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OBJECT

The purpose of the company is to commercially

operate, directly or indirectly, restaurants, cafes,

tearooms, kitchens, bars, theaters and events,

discos, boîtes, supermarkets, cinemas, living

rooms, playground, parking, spa, and all types

of commercial services related to the above.

Commercial exploitation, give and take on lease

or loan, on its own account or on behalf of third

parties, hotels, motels, inns, lodging, and related

hosting people and tourism, including all related

services of the hospitality and tourism. The

creation, organization, management, distribution,

advertising, development, production and sale

or self of any literary, social, sport, tourism,

scientific, artistic, cultural activities account, and

all kinds of events in general, as well as services

advertising, swaps and similar activities. In

addition, production, manufacturing, distribution,

import, export, marketing and provision of

services for all kinds of products, especially

those related to the food sector, catering

services or others. Lastly, import, export,

acquisition, sale, investment, purchase, sale,

exchange, lease, sublease of real, and personal

property, or rights to them, their administration

and operate them directly or through third

parties, in any form.

DIRECTORS, CEO AND KEY EXECUTIVES

Pier-Paolo Zaccarelli Fasce

Percy Ecclefield Arriaza

Vicente Figueroa Salas, CEO

Taxpayer ID 79.646.620-0

Legal status Closed corporation

Subscribed capital MMCh$ 666

Paid-in capital MMCh$ 666

It is the sub-concessionaire of both Food & Beverage and Hotel business of Viña del

Mar Casino. Under the existing contractual relationship with the concessionaire Antonio

Martinez y Cia., Masterline S.A. pays an annual rent of UF50,000 to the former.

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. directly participates with 1% and

indirectly through its direct subsidiary Enjoy

Gestión Limitada with 99% in the capital of the

Company.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY

0,36%.

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

Pier-Paolo Zaccarelli Fasce: Director of Parent

and Subsidiary.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY:

There are no contracts held between parent and

subsidiary.

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OBJECT

The company’s objective is the exploitation

of casino games in the district of Santa Cruz,

province of Colchagua, in the Libertador

Bernardo O’Higgins Region, under the terms

stated in the law 19.995 and its regulations,

which authorizes it to develop gambling

machines, implements and related services,

authorized in the respective operating permit,

authorized in the future by the Superintendence

of Casinos or another relevant authority.

DIRECTORS, CEO AND KEY EXECUTIVES

Carlos Cardoen Cornejo

Francisco Javier Martínez Seguí

Andrés Cardoen Aylwin

Percy Ecclefield Arriaza

Diego Cardoen Délano

Ruben Ormazábal Sanhueza, CEO

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE CAPITAL OF THE INVESTEE

AND CHANGES DURING THE PERIOD UNDER

REVIEW

Enjoy S.A. participates indirectly through its

direct subsidiary Enjoy Gestión Limitada with

40% in the Company’s capital.

Taxpayer ID 99.598.660-4

Legal statusClosed corporation legally mandated subject to supervision by the Superintendence of Securities and Insurance, and registered in the Register of Reporting Entities with the number 167

Subscribed capital MMCh$ 2.379

Paid-in capital MMCh$ 2.379

INVESTMENT OF THE ASSOCIATE IN THE

PARENT’S ASSETS

0,63%

LEGAL REPRESENTATIVES WHO WORK

IN THE PARENT AND THE ASSOCIATED

COMPANY

Antonio Martínez Seguí: Vice Chairman of Parent

Board and subsidiary Director.

Percy Ecclefield Arriaza: Corporate Governance

and Compliance Officer and subsidiary Director.

COMMERCIAL RELATIONSHIP BETWEEN

PARENT AND ASSOCIATED COMPANY:

There is no commercial relationship between the

parent and the associated company.

SIGNIFICANT ACTS AND CONTRACTS

BETWEEN PARENT AND ASSOCIATED

COMPANY

There are no contracts between the parent and

associated company.

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OBJECT

Commercial operation of Pucón Casino and

its complementary services, as well as the

commercial exploitation of dining rooms,

kitchens, bar, boîtes, self-services, cabaret,

disco, and other services or by-products that

operate in the aforementioned establishment

and, in general, all operations or acts that are

granted or authorized by the Municipality of

Pucón. Moreover, the construction, operation,

give and take in lease, on its own account or on

behalf of third parties, of hotels, motels, inns,

lodges, boats, and others, related to hosting

people and tourism, with restaurant, bar, cinema,

tearooms, and all services related to hotels,

spas and tourism, either domestic and foreign,

present or future; excursions, exploiting of

retail establishments of products or services

or to lease these commercial establishments

to third parties, transportation of people or

cargo, whether for tourism or not; buy, sell

reserve land, air, or lacustrine tickets. In addition,

to create, organize, manage, disseminate,

develop, produce and sell, on its own account

or on behalf of third parties, literary, social,

sport, tourism, scientific, artistic, and cultural

activities, and all kinds of events in general;

including banquets, parties, demonstrations;

the representation of other domestic or foreign

companies in the area; hiring all kinds of artists,

athletes, and other celebrities; booking premises,

theaters, restaurants, hotels, booking shows, and

everything related to communications between

businesses, professionals, and stakeholders

or the public, in terms of courses, symposia,

conferences, field trips, meetings; consultancy

services any kind; acting as press, advertising,

broadcasting and tourism agency; everything

that now or in the future is related with such

matters or with art, leisure, trade, hotels, sports

and recreational activities, for which it can buy,

give and take in lease, manage, establish and

build sports fields, marinas, jetties, swimming

pools, gyms, camping and other buildings,

facilities and services that necessary or

conducive to such purposes.

Taxpayer ID 96.725.460-6

Legal status Closed corporation.

Subscribed capital MMCh$ 2.450

Paid-in capital MMCh$ 2.450

It is the operator of Pucón Casino and Gran Hotel Pucón.

DIRECTORS, CEO AND KEY EXECUTIVES

Antonio Martínez Seguí, President

Francisco Javier Martínez Seguí

Percy Ecclefield Arriaza

Pier-Paolo Zaccarelli Fasce

Eduardo Sboccia Serrano

Rodrigo Borquez Soudy, CEO

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. participates directly with 1% and

indirectly through its direct subsidiary Enjoy

Gestión Limitada with 99%, in the capital of the

company.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY

-1,16%

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

Percy Ecclefield Arriaza: Corporate Governance

and Compliance Officer and subsidiary Director.

Pier-Paolo Zaccarelli Fasce: Director of Parent

and Subsidiary.

Eduardo Sboccia Serrano: Legal Services

Manager of Parent and subsidiary Director.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY:

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY

There are no contracts held between parent and

subsidiary.

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OBJECT

The object of the company is the commercial

exploitation of tourism-related activities and

entertainment; specifically the operation,

administration, organization and execution, on

its own account or on behalf of third parties,

of ski resorts, spas, hotels, tours, events and

all matters relating to tourism in general and

especially with adventure tourism, whether

carried out in the mountains, rivers, lakes, sea,

forest, desert, airspace, beach, countryside or

city; being able to exploit the various activities

that can be performed in such places, whether

they are sporting, recreational, competition,

medical, social, cultural, and others that can

be operated commercially. In addition, the

company may commercially exploit bars,

restaurants, shops, cafes and other premises of

this nature, as well as the leasing any implement

or input that is necessary for the development of

activities to be implemented in the above places.

The company may also provide services of

passenger transport in its own or other vehicles,

leased, in leasing or under any other form, both

in Chile and abroad, on its own account or on

behalf of third parties, whether they are paid

or not. The company may also make all kinds

of investments in different assets, whether real

estate or not, especially if they relate to the

materialization of the main line of business.

Taxpayer ID 96.824.970-3

Legal status Closed corporation

Subscribed capital MMCh$ 1.723

Paid-in capital MMCh$ 790

Develops the tourism area and general complementary services for hotels. It operates

the ski center located in the Villarrica volcano, and provides tour operator services for

Enjoy Pucón.

DIRECTORS, CEO AND KEY EXECUTIVES

Francisco Javier Martínez Seguí, President

Antonio Martínez Seguí

Percy Ecclefield Arriaza

Rodrigo Borquez Soudy, CEO

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. participates directly with 0,63% and

indirectly through its direct subsidiary Enjoy

Gestión Limitada with a 99.37% interest in the

company’s capital.

Such participation has not changed during the

year.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY

0,22%.

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

Percy Ecclefield Arriaza: Corporate Governance

and Compliance Officer and subsidiary Director.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY

There are no contracts held between parent and

subsidiary.

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OBJECT

Capital investment in all types of movable

property such as rights in all types of companies,

whether commercial or civil, communities or

associations and all kinds of titles or securities.

Administer, on its own account or on behalf of

third parties, earn income; take part in other

companies, domestic or foreign, of any type or

Legal status, modify them, and take over their

administration, whatever their line of business.

In addition, the company will aim at the direct

or indirect exploitation of restaurants, cafes,

bars, and in general to premises that provide

entertainment and leisure services; as well as

museum management and the creation and

administration of internet sites. Moreover,

construct, operate, give and take on lease or

loan, on its own account or on behalf of third

parties, hotels, motels, inns, lodges, and others

related to hosting people and tourism, with all

relevant hotel and tourism services. In addition,

the creation, organization, management,

distribution, advertising, development,

production and sale on their own account or on

behalf of third parties, of literary, social, sport,

tourism, scientific, artistic, cultural activities,

and all kinds of events in general. Lastly, the

acquisition, sale, investment, purchase, sale,

exchange, lease, sublease of real and personal

property, or rights to them, their management

and operation, build on them, for itself or for

others; exploit them, directly or through third

parties, in any form. The sale, import, export,

distribution, consignment, representation or

intermediation in any kind of change or domain

attributes in relation to any kind of property; and

any related activity, at present or in the future

with the aforementioned; and any other business

that shareholders may agree upon.

Taxpayer ID 99.597.250-6

Legal status Closed corporation

Subscribed capital MMCh$ 582

Paid-in capital MMCh$ 239

It is the operator of Hotel de la Isla, Food & Beverage services and other supplementary

services for Proyecto Integral Enjoy Chiloé.

DIRECTORS, CEO AND KEY EXECUTIVES

Antonio Martínez Seguí, President

Francisco Javier Martínez Seguí

Pier-Paolo Zaccarelli Fasce

Percy Ecclefield Arriaza

Eduardo Sboccia Serrano

Jessica Fernaldt Corada, CEO

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. participates directly with 1% and

indirectly through its direct subsidiary Enjoy

Gestión Limitada, with 99% in the company’s

capital.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY

-5,30%

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

Percy Ecclefield Arriaza: Corporate Governance

and Compliance Officer and subsidiary Director.

Pier-Paolo Zaccarelli Fasce: Director of Parent

and Subsidiary.

Eduardo Sboccia Serrano: Legal Services

Manager of parent and Director of subsidiary.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY

There are no contracts held between parent and

subsidiary.

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OBJECT

The operation of gaming casino in Castro

in the terms established in Law 19.995 and

its regulations, allowing the development of

gambling machines, implements, and related

services authorized in the respective operating

permit or authorized in the future by the

Superintendence of Casinos or another relevant

authority that replaces it.

DIRECTORS, CEO AND KEY EXECUTIVES:

Antonio Martínez Seguí, President

Francisco Javier Martínez Seguí

Pier-Paolo Zaccarelli Fasce

Percy Ecclefield Arriaza

Eduardo Sboccia Serrano

Rubén Ormazábal Sanhueza, CEO

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. participates directly with 1% and

indirectly through its subsidiary Operaciones

Integrales Isla Grande S.A, with 99% in the

capital of the company

Taxpayer ID 99.598.510-1

Legal statusClosed corporation legally mandated subject to supervision by the Superintendence of Securities and Insurance, and registered in the Register of Reporting Entities with the number 194

Subscribed capital MMCh$ 1.432

Paid-in capital MMCh$ 1.432

It is the licensee operating the Gaming Casino of Castro.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY:

-3,65%

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

Percy Ecclefield Arriaza: Corporate Governance

and Compliance Officer and subsidiary Director.

Pier-Paolo Zaccarelli Fasce: Director of Parent

and Subsidiary Director

Eduardo Sboccia Serrano: Manager and Director

of Legal Services of parent and subsidiary

Director.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY

There are no contracts held between parent and

subsidiary.

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OBJECT

The object of the company will be exclusively

the commercial exploitation of the Casino

Municipal de Viña del Mar and others expressly

authorized by the Municipality of Viña del Mar, in

the terms established in N°1 of the Public Tender

Bases to grant the Casino Municipal of Viña del

Mar in Concession, approved by the Mayor’s

Decree number five thousand two hundred and

twenty, on October 15th, 1999, as amended by

the Mayor’s Decree number six thousand one

hundred thirteen, on December 7th, 1999, both

of the Lord Mayor of the Municipality of Viña del

Mar.

SENIOR MANAGERS AND EXECUTIVES

Francisco Javier Martínez Seguí (Socio)

Antonio Martínez Seguí (Socio)

Vicente Figueroa Salas (Gerente General)

Taxpayer ID 77.438.400-6

Legal status Commercial partnership

Subscribed capital MMCh$ 5.036

Paid-in capital MMCh$ 5.036

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Through an agreement, the partners of Antonio

Martínez y Cía. assign to Enjoy Gestión Ltda.,

a subsidiary of Enjoy S.A., the control of the

company and the rights to receive all profits or

profits generated and / or distributed by the

company, to a greater extent, which does not

yield (i) the operation and exploitation of the

Casino (ii ) The fulfillment of the obligations

assumed by the

Partnership with the Municipality under the

Concession Contract and Slots S.A. Under

the sub-contract, all of which shall remain

unchanged from the position and responsibility

of the Company.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY

1,14%

OFFICIAL REPRESENTATIVES WHO WORK

IN THE PARENT COMPANY AND THE

SUBSIDIARY

Francisco Javier Martínez Seguí: Chairman of

Parent Board and Partner of the subsidiary.

Antonio Martínez Seguí: Vice-president of the

Parent Directory and Partner of the subsidiary.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY

There are no contracts held between parent and

subsidiary.

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OBJECT

Design, build, use and demolish buildings,

supervise construction, perform works

specialized in land-use planning; real

estate business, housing management

and maintenance, buy and sell property,

foreign and domestic market trading agency

activities, transport domestic and international

passengers and cargo on highways, marketing

(advertising and promotion), market research

and communications media, business and

management consulting, represent foreign

companies.

MANAGERS

Francisco Javier Martínez Seguí

Antonio Martínez Seguí

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. participates indirectly, through its

direct subsidiary Enjoy SpA with 100% in the

company’s capital.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY

-0,73%.

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY

There are no contracts held between parent and

subsidiary.

Taxpayer ID MB-2375796

Legal status Closed corporation

Subscribed capital HRK 20.000

Paid-in capital HRK 20.000

This Croatian company owns 46.5% of the shares of Sociedad Casino Gradd.d.

20LA

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OBJET

Gambling and betting establishment, exchange

operations, preparation, and provision of food,

drink, and beverage services.

MANAGERS

Francisco Javier Martínez Seguí

Antonio Martínez Seguí

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. hold a 46.54 % indirect interest

through its indirect subsidiary Latino

Usluged.o.o.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY:

0%.

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY

Francisco Javier Martínez Seguí: Chairman of

parent board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of parent

board and subsidiary Director.

COMMERCIAL RELATIONSHIP BETWEEN

PARENT AND ASSOCIATED COMPANY

There is no commercial relationship between the

Parent Company and Affiliated Companies.

SIGNIFICANT ACTS AND CONTRACTS

BETWEEN PARENT AND ASSOCIATED

COMPANY

There are no contracts between the parent and

affiliate.

Taxpayer ID MB-1454692

Legal status Closed corporation

Subscribed capital HRK 16.000.000

Paid-in capital HRK 16.000.000

This company had a license to operate casinos in Croatia, which is currently in the

process of dissolution.

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OBJECT

The corporate object shall be: a) Foreign

investment, investment in all kinds of tangible

intangible, movable, immovable property,

including, but not limited to, all kinds of

marketable securities, such as shares in public

corporations, options in other companies,

bonds, debentures and any kind of foreign

currency deposits and any other contract that

the partners consider necessary to fulfill the

corporate object; and, b) civil and commercial

use, through lease, license or any other way of

transferring the temporary enjoyment and use of

trademarks, patents, industrial models, computer

development, software and other related

services.

MANAGERS

Francisco Javier Martínez Seguí

Antonio Martínez Seguí

Pier-Paolo Zaccarelli Fasce

Percy Ecclefield Arriaza

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. directly holds a 0.09% interest and

indirectly holds a 99.91% interest through its

direct subsidiary Inversiones Enjoy SpA, in the

company’s capital.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY

2,28%.

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY:

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

Percy Ecclefield Arriaza: Corporate Governance

and Compliance Officer and subsidiary Director.

Pier-Paolo Zaccarelli Fasce: Director of Parent

and Subsidiary.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY

There are no contracts held between parent and

subsidiary.

Taxpayer ID 76.043.559-7

Legal status Closed corporation

Subscribed capital MUSD 34.837

Paid-in capital MUSD 34.837

It owns a 53 % interest in Cela S.A., operator of the Casino, located at the Hotel

Sheraton in Mendoza. Inversiones Andes Entretención Limitada holds a 90 percent

interest in Sociedad Yojne, company that provides the consulting services required by

Cela S.A. to operate this casino.

22IN

VER

SIO

NES

AN

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EN

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ENC

ION

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DA

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OBJECT

The corporate object is to directly, or through

a third party or third-party partners, in any part

of the Republic or overseas, directly or through

hiring of professionals, technicians or any other

person for such purpose; conduct the following

activities: a) Hotel Management: hotel business

activity in general, and particularly commercial

activities; commercial use of buildings dedicated

to hotel, hostel, accommodations, restaurant and

bar services, its additional and/or complementary

facilities, for customer service. b) Use buildings

dedicated to gaming: bingos, casinos, slot

machines, or similar games duly authorized by

the competent authority. c) Shows: through

public and private entertainment organizations,

especially for wine and tourism sector events,

hiring wine tasters, groups, artists, designers,

organizing conferences, wine tasting, presentations,

exhibitions, fairs, agreements and confrontations

and sports events in the country and abroad;

promote regional articles, especially related to

the wine and tourism industry, films, programs,

shows, conference and symposium rooms, show

films and production thereof; organize radio and

television shows, and theatre performances. d)

Real estate activity: purchase rural and/or urban

movable property for construction projects or

other initiatives or subsequent marketing, including

or not buildings, divisions and plots, private urban

neighborhoods and division of own or third-party

land. Condominium property holding or others,

and subsequent marketing for rental, sales, lease

or any other type of legal contract or business. e)

Refurbishment or modification of real property

with purchased or third party buildings. f) Power

of attorney and representatives: representing and

implementing all kinds of powers of attorney and

representations, directly or indirectly, to private

individuals, private or mixed, public, domestic,

regional or municipal companies, independent

government or decentralized agencies, domestic

or foreign companies related to its activity, service

billing and collecting in any and all aspects, any

type of remuneration in different terms or methods

expected thereof. It could also provide its services,

through services in bids and/or private or public

tenders in the country or overseas, accepting and

implementing the contracts awarded under the

conditions stipulated for each case. g) Financial

object: through secure or non-secured loans, short

or long-term, capital contribution to individuals or

companies incorporated or to be incorporated, to

finance operations conducted or to be conducted,

trading shares, government bonds, debentures and

any and all marketable securities and commercial

papers for any of the current or future financial

facilities available. Except for financial operations

set out in the Financial Entities Act, and any other

law requiring a public bid process. h) Export and

import products derived from the abovementioned

activities.”

DIRECTORS, CEO AND KEY EXECUTIVES:

Julio Camsen, President

Juan Eduardo Garcia Newcomb, Vicepresident

Natalio Camsen, Director

Gerardo Cood Shoepke, Director

Eduardo Marticorena, Director

Ramón Moyano, Director

María Anahí Cordero, Director Suplente

Paola Sofía Camsen, Director Suplente

Percy Ecclefield Arriaza, Director Suplente

Crouzel, Roberto, Director Suplente

Ronit A. Camsen, Director Suplente

Ariel Pérez, CEO

CURRENT OWNERSHIP INTEREST OF THE

PARENT COMPANY IN THE ASSOCIATE

COMPANY AND CHANGES DURING THE PERIOD

UNDER REVIEW

Enjoy S.A. holds a 53% indirect interest through its

indirect subsidiary Inversiones Andes Entretención

Limitada.

INVESTMENT OF THE ASSOCIATE COMPANY IN

THE PARENT’S ASSETS

1,38%.

LEGAL REPRESENTATIVES WHO WORK IN THE

PARENT AND THE ASSOCIATE COMPANY

Gerardo Cood Schoepke, parent CEO and Director

of the associated Company.

Percy Ecclefield Arriaza, Corporate Governance

and Compliance Officer and Alternate Director of

the associated Company.

COMMERCIAL RELATIONSHIP BETWEEN

PARENT AND AFFILIATED COMPANY

There is no commercial relationship between the

parent and the associated company.

SIGNIFICANT ACTS AND CONTRACTS BETWEEN

PARENT AND ASSOCIATED COMPANY

There are no contracts between the parent and

associated company.

Taxpayer ID 30-69468373-4

Legal status Closed corporation

Subscribed capital ARG$ 34.048.016,00

Paid-in capital ARG$ 34.048.016,00

Argentine Company that operates Enjoy’s Casino in Mendoza.

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Taxpayer ID 30-7104780-5

Legal status Closed corporation

Subscribed capital ARG$ 54.000

Paid-in capital ARG$ 54.000

This company provides consulting services required by Cela S.A. to operate Enjoy’s

casino in Mendoza.

OBJECT

a) Real Estate Activity: Purchase rural and/or

urban real property for construction projects

and subsequent marketing including or not

buildings, divisions and plots, private urban

neighborhood and division of own or third-party

land. Condominium property holdings or others,

and subsequent marketing for rental, sales, lease

or any other type of legal contract or business.

b) Refurbishment or modification of real

property with purchased or third party buildings.

c) Housing construction: of any kinds on own

or third-party land. d) Hotel business activity:

use hotel establishments directly or through a

third party. e) Use establishments dedicated

to gaming: bingos, casinos, slot machines, and

similar games duly authorized by the competent

authority.

DIRECTORS, CEO AND KEY EXECUTIVES:

Ramón Moyano

Ricardo Vicente Seeber

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. holds 90% indirect interest through

its indirect subsidiary Inversiones Andes

Entretención Limitada.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY

0,24%.

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY

There are none.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY

There are no contracts held between parent and

subsidiary.

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Taxpayer ID 212303260013

Legal status Public corporation

Subscribed capital USD 147.052.990

Paid-in capital USD 147.052.990

Uruguayan Public Corporation, operator of Punta del Este Conrad Casino & Resort,

Uruguay.

CORPORATE OBJECT

Its corporate object is to carry out the following

activities in the Eastern Republic or abroad,

directly or through a third party, and in third-party

partnerships:

a. Develop and operate hotel services, gambling

games and Congress Centers, as well as related

services and activities, such as restaurants,

bars, shopping centers, clubs, health and sports

organizations, directly or through a third party,

under concession or operation conditions

permitted for such purposes;

b. Carry out maintenance and repair work at

facilities and other related activities, such as

employee training for the operations;

c. Develop infrastructure and provider services to

users;

d. Market products related to implementing the

business objectives referred to in section a)

above;

e. Conduct technical and consulting studies, build

and manage all kinds of specific or additional

facilities to the business objectives specified in

this clause;

f. Import and export all kinds of components,

equipment and material required to achieve its

objectives;

g. Operate and market tourism services in

whatever way possible, by providing and

marketing tourism services such as excursions,

land, sea and air trips for individuals in Uruguay

and abroad, and sell tickets, package tours or

excursions, book hotel rooms, and also act as a

travel agent in Uruguay or abroad and request,

if necessary, the pertinent authorizations;

h. Carry out any additional activities, related and

concurrent to the abovementioned activities.

i. In order to fulfill its object, the Company is

duly and legally authorized to acquire rights

and assume obligations, incorporate or have

an ownership interest in companies; import or

export; form part of economic interest groups

or holdings and of any interest community

with entities or individuals; and, in general,

implement any type of legal action and

contract that is forbidden by law.

DIRECTORS, CEO AND KEY EXECUTIVES:

Francisco Javier Martínez Seguí, Presidente

Antonio Martínez Seguí.

Percy Ecclefield Arriaza

Pier-Paolo Zaccarelli Fasce.

Octavio Bofill Genzsch.

Thomas Jenkin.

Walter Zeinal Menendez.

Evaristo Chopitea.

Juan Eduardo García Newcomb, CEO

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. participates indirectly, through

its subsidiary Enjoy SpA, with 44.89% in the

company’s capital. Furthermore, through its

direct subsidiary, Enjoy Gestión Ltda., it has 0.11 %

interest in its social capital.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY

27,76%

LEGAL REPRESENTATIVES WHO WORK IN THE

PARENT AND THE SUBSIDIARY

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

Pier-Paolo Zaccarelli Fasce: Director of Parent and

Subsidiary.

Octavio Bofill Genzsch: Director of Parent and

Subsidiary.

Percy Albert Ecclefield Arriaza: Corporate

Governance and Compliance Officer and

subsidiary Director.

COMMERCIAL RELATIONS BETWEEN PARENT

AND SUBSIDIARY

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY

There is no commercial relationship between

parent and subsidiary.

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CORPORATE OBJECT

The contract object is only and exclusively, to

directly perform currency exchange activities, in

compliance with the content and scope set out

by legal provisions and regulations, inside the

Casino premises that operate at the property on

Padrón 803, Punta del Este, First Judicial District

of Maldonado.

DIRECTORS, CEO AND KEY EXECUTIVES

Juan Eduardo García, Presidente

Esteban Rigo-Righi Baillie

Percy Ecclefield Arriaza

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. participates indirectly through its

indirect subsidiary Baluma S.A. with 100% in the

company’s capital.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY:

0,09%

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY

Percy Ecclefield Arriza: Corporate Governance

and Compliance Officer and subsidiary Director.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY

There are no contracts held between parent and

subsidiary.

Taxpayer ID 100239580016

Legal status Public corporation

Subscribed capital USD 5.100.000

Paid-in capital USD 5.100.000

A Uruguayan company duly incorporated under the company trade law, which

operates exclusively as a currency exchange bureau inside the casino. This is why it has

to be approved by the BCU. This approval was issued on January 2, 1997.

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CORPORATE OBJECT:

La Sociedad tiene como objeto actividades de

agencia de viajes y turismo, con operación de

cambio manual y participación en el capital de

otras sociedades nacionales o extranjeras, así

sea como cuotitas o accionistas

DIRECTORS, CEO AND KEY EXECUTIVES

Anay Josette Gremaud

Sandra Lucia de Almeida

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. holds 99.99 % indirect interest

through its indirect subsidiary Baluma S.A. in the

Company’s capital.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY:

0,12%.

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY:

There are none.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY

There are no contracts held between parent and

subsidiary.

Taxpayer ID 02.334.323/0001-47

Legal status Limited company

Subscribed capital R$136.100

Paid-in capital R$100.000

Limited Brazilian company.

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OBJECT

The purpose of the company is: a) Making

investments in all kinds of tangible assets,

movable and immovable, or intangible assets,

including the acquisition of shares, rights in

companies, whether they are of people or

capital, debentures, bonds , time deposits,

fund shares, commercial paper and all kinds of

titles or securities and investment instruments,

and management and marketing of these

investments and their earnings; b) Carry out

real estate businesses, for which it can buy, sell,

negotiate and arrange in any form and for any

reason, urban or rural real estate, even furnished,

and may make subdivisions, land development,

construction of any kind and to sell and / or

exploit them by or self-employed; give and take

in lease, loan, lease, sublease and give and give

to others in any capacity, the use and enjoyment

of real estate; manage these investments and

receive earnings from them; c) The provision of

consulting services, especially in matters of real

estate investments; and d) Generally perform all

kinds of investments. To fulfill its purpose, the

company can carry out and celebrate all kinds of

acts, even incorporate other companies or join

them, and undertake their administration.

DIRECTORS, CEO AND KEY EXECUTIVES

Iván Simunovic Petricio

Antonio Martínez Seguí

Pier-Paolo Zaccarelli Fasce

Francisco Javier Martínez Seguí

Eduardo Sboccia Serrano, CEO

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. participates indirectly through its

direct subsidiary Inversiones Inmobiliarias Enjoy

SpA with 75% in the Company’s capital.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY

3,90%.

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

Pier-Paolo Zaccarelli Fasce: Director of Parent

and Subsidiary.

Eduardo Sboccia Serrano: Legal Services

Manager of parent and subsidiary CEO.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY

There are no contracts held between parent and

subsidiary.

Taxpayer ID 76.306.290-2

Legal status Closed corporation

Subscribed capital MMCh$ 9.479

Paid-in capital MMCh$ 9.479

Renting, under a leasing contract with Banco de Crédito e Inversiones and Banco de

Chile, the building where the project Enjoy Antofagasta is located. That property is

subject to a sublease for Inversiones Vista Norte S.A. for UF 17,200 + VAT per month.

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OBJECT

The purpose of the company is: a) Making

investments in all kinds of tangible assets,

movable and immovable, or intangible assets,

including the acquisition of shares, rights in

companies, whether they are of people or

capital, debentures, bonds , time deposits,

fund shares, commercial paper and all kinds of

titles or securities and investment instruments,

and management and marketing of these

investments and their earnings; b) Carry out

real estate businesses, for which it can buy, sell,

negotiate and arrange in any form and for any

reason, urban or rural real estate, even furnished,

and may make subdivisions, land development,

construction of any kind and to sell and/or

exploit them on their own account or through

third parties; give and take in lease, loan, lease,

sublease and give and transfer to others in any

capacity, for use and enjoyment of real estate;

manage these investments and receive their

earnings; c) The provision of consulting services,

especially in matters of real estate investments;

d) The lease, sublease, and any form of transfer

of use and enjoyment of furnished temporary

buildings or having facilities or machinery that

allows the exercise of commercial or industrial

activities; and e) generally perform all kinds of

investments. To fulfill its purpose, the company

can carry out and celebrate all kinds of acts,

even form other companies or join them, and

undertake their administration.

DIRECTORS, CEO AND KEY EXECUTIVES:

Antonio Martínez Seguí

Francisco Javier Martínez Seguí

Pier-PaoloZaccarelli Fasce

Percy Ecclefield Arriaza

José Miguel Bulnes

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. participates directly with 0.01%

and indirectly through its direct Inversiones

Inmobiliarias Enjoy SpA with 99.99% in the

capital of the company.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY:

8,69%

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

Pier-Paolo Zaccarelli Fasce: Director of Parent

and Subsidiary.

Percy Ecclefield Arriza: Corporate Governance

and Compliance Officer and subsidiary Manager.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY

There are no contracts held between parent and

subsidiary.

Taxpayer ID 76.528.170-9

Legal status Joint stock company

Subscribed capital MMCh$ 16.846

Paid-in capital MMCh$ 16.846

Owner of the property where the Gaming Casino of Coquimbo and Hotel de La Bahia

are located. This building is subleased to Sociedad Campos del Norte S.A. for UF

13,800 per month plus VAT.

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OBJECT

The purpose of the company is: a) Making

investments in all kinds of tangible assets,

movable and immovable, or intangible assets,

including the acquisition of shares, rights in

companies, whether they are of people or

capital, debentures, bonds , time deposits,

fund shares, commercial paper and all kinds of

titles or securities and investment instruments,

and management and marketing of these

investments and their earnings; b) Carrying out

real estate businesses, for which it can buy, sell,

negotiate and arrange in any form and for any

reason, urban or rural real estate, even furnished,

and may make subdivisions, land development,

construction of any kind and to sell and / or

exploit them by or self-employed; give and take

in lease, loan, lease, sublease and give and give

to others in any capacity, the use and enjoyment

of real estate; manage these investments and

receive earnings from them; c) The provision of

consulting services, especially in matters of real

estate investments; and d) Generally perform all

kinds of investments. To fulfill its purpose, the

company can carry out and celebrate all kinds of

acts, even incorporate other companies or join

them, and undertake their administration.

DDIRECTORS, CEO AND KEY EXECUTIVES

Antonio Martinez Seguí

Francisco Javier Martinez Seguí

Percy Ecclefield Arriaza

Ricardo Salguero Lesure

Jeffrey Salguero

Eduardo Sboccia Serrano, CEO

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. participates indirectly through its

direct subsidiary Inversiones Inmobiliarias Enjoy

SpA with 70% in the capital of the company.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY:

2,03%.

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY:

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

Eduardo Sboccia Serrano: Legal Services

Manager of parent and CEO subsidiary.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY:

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY:

There are no contracts held between parent and

subsidiary.

Taxpayer ID 76.236.642-8

Legal status Closed corporation

Subscribed capital MMCh$ 19.342

Paid-in capital MMCh$ 19.342

It owns property on which Enjoy Santiago project is located.

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OBJECT

Real estate activity in general, for which it will

manage the real estate to be awarded on the

property, and invest in all kinds of urban and

rural real estate and the rights to these assets,

being able to especially divide, subdivide,

urbanize, build , repair, rebuild, restore, alienate,

encumber, lease, manage them, as already

stated, use them and collect their earnings; and

in general, perform and enter into all acts and

contracts necessary for the fulfillment of the

corporate purpose and for the development of

its business.

DIRECTORS, CEO AND KEY EXECUTIVES

Antonio Martínez Seguí

Francisco Javier Martínez Seguí

Pier-Paolo Zaccarelli Fasce

Percy Ecclefield Arriaza

José Miguel Bulnes

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. participates directly with 0.45%

and indirectly through its direct subsidiary

Inversiones Inmobiliarias Enjoy SpA with 99.55%

in the capital of the company.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY:

3,60%.

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY:

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

Pier-Paolo Zaccarelli Fasce: Director of Parent

and Subsidiary.

Percy Ecclefield Arriza: Corporate Governance

and Compliance Officer and subsidiary Director.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY:

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY:

There are no contracts held between parent and

subsidiary.

Taxpayer ID 96.929.700-0

Legal status Joint stock company

Subscribed capital MMCh$ 12.777

Paid-in capital MMCh$ 9.902

It is both owner and tenant of the property where the current Gaming Casino of Pucón

is located. These buildings are leased and subleased to Sociedad Kuden S.A. Company

S.A. in a monthly sum of UF 6,940 + VAT. In addition, the company acquired the assets

of Gran Hotel Pucón.

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OBJECT

The purpose of the company is: a) Making

investments in all kinds of tangible assets,

movable and immovable, or intangible assets,

including the acquisition of shares, rights in

companies, whether they are of people or

capital, debentures, bonds , time deposits,

fund shares, commercial paper and all kinds of

titles or securities and investment instruments,

and management and marketing of these

investments and their earnings; b) Carrying out

real estate businesses, for which it can buy, sell,

negotiate and arrange in any form and for any

reason, urban or rural real estate, even furnished,

and may make subdivisions, land development,

construction of any kind and to sell and / or

exploit them by or self-employed; give and take

in lease, loan, lease, sublease and give and give

to others in any capacity, the use and enjoyment

of real estate; manage these investments and

receive earnings from them; c) The provision of

consulting services, especially in matters of real

estate investments; and d) Generally perform all

kinds of investments. To fulfill its purpose, the

company can carry out and celebrate all kinds of

acts, even incorporate other companies or join

them, and undertake their administration.

DIRECTORS, CEO AND KEY EXECUTIVES:

Antonio Martínez Seguí

Francisco Javier Martínez Seguí

Pier-Paolo Zaccarelli Fasce

Percy Ecclefield Arriaza

José Miguel Bulnes

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. participa en forma directa con un

1% e indirectamente a través de su filial directa

Inversiones Inmobiliarias Enjoy S.p.A con un 99%

in the Company’s capital.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY

0,03%.

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

Pier-Paolo Zaccarelli Fasce: Director of Parent

and Subsidiary.

Percy Ecclefield Arriza: Corporate Governance

and Compliance Officer and subsidiary Director.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY

No existe relación comercial entre matriz y filial.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY

There are no contracts held between parent and

subsidiary.

Taxpayer ID 76.307.270-3

Legal status Joint stock company

Subscribed capital MMCh$ 12

Paid-in capital MMCh$ 12

It is the owner of the properties in which both the Gaming Casino and Hotel are

located, in the city of Castro. These properties are leased to Sociedad Rantrur S.A. and

Operaciones Integrales Isla Grande S.A. for a monthly sum of UF 9,166 + VAT.

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OBJECT

The object of the company shall be: The

development and operation of localized games

of chance through gaming casinos in the

Republic of Colombia, pursuant to the provisions

of Law 643 of year 2001 in this country and

other applicable regulations in their territory, as

well as the provision either directly or through

third parties of complementary services to

the operation of such casino games such as

restaurants, bars, theaters and events, foreign

exchange services. In fulfilling its main purpose,

the company may negotiate, sign, celebrate,

execute and settle concession contracts with

government entities and privately owned

entities, including without limitation the

Industrial and Commercial Company of the

State Administrator of the Profit Monopoly of

Games of Chance and Luck - COLJUEGOS, so it

can operate any type of game element, such as

electronic slot machines, casino tables and other

betting implements it deems appropriate. It may

also develop the exploitation and operation

of games of chance online through any virtual

platform. Within its object, it may provide all

types of consulting, professional and technical

services, as well as legal, financial, accounting,

commercial, human resources, public relations,

sales and trading management in them, and

computer services, among others, that are

necessary for the study, implementation, and

operation of businesses and projects in general.

The company may buy, sell, lease, sublicense,

market, export and import, games of chance

or slot machines and other gaming elements

it considers relevant, with all their parts and

accessories.

DIRECTORS, CEO AND KEY EXECUTIVES

Antonio Martinez Segui

Francisco Javier Martinez Segui

Percy Ecclefield Arriaza

Pier-Paolo Zaccarelli Fasce

Gerardo Cood Schoepke

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. does not participate directly,

but indirectly through its direct subsidiary

Inversiones SpA, holding 100% equity interest in

the company’s capital.

Such participation has not changed during the

year.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY

-0,11%.

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

Pier-Paolo Zaccarelli Fasce: Director of Parent

and Subsidiary.

Gerardo Cood Schoepke: Parent CEO and

subsidiary manager.

Percy Ecclefield Arriza: Corporate Governance

and Compliance Officer and subsidiary Director.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY

There are no contracts held between parent and

subsidiary.

Taxpayer ID 76.472.831-9

Legal status Joint Stock Company.

Subscribed capital MMCh$ 200

Paid-in capital MMCh$ 200

Joint stock Company, whose Colombian subsidiary operates the Casino of San Andres,

Colombia.

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OBJECT

The purpose of the Company is to operate the

Gaming Casino of Iquique, located in Tarapacá

Region, in the terms set forth in Law N° 19.995

and in its Regulations, where games of chance,

machines, devices, and services authorized in the

respective operation permit can be developed

or that in the future are authorized by the

Superintendence of Gaming Casinos operation

or another similar authority.

DIRECTORS, CEO AND KEY EXECUTIVES

Antonio Martínez Seguí

Francisco Javier Martínez Seguí

Percy Ecclefield Arriaza

Gerardo Cood Schoepke

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. directly participates with 1% and

indirectly through its direct subsidiary Enjoy

Gestión Limitada with a 99% stake in the

company.

Taxpayer ID 76.607.278-K

Legal status Joint stock company

Subscribed capital MMCh$ 460

Paid-in capital MMCh$ 230

It is the Company that will apply to obtain the Operation Permit for the operation of a

gaming casino at the city of Iquique.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY:

0,07%.

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY:

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

Gerardo Cood Schoepke: CEO of Parent

Company and subsidiary Director.

Percy Ecclefield Arriaza: Corporate Governance

and Compliance Officer and subsidiary Director.

COMMERCIAL RELATIONSHIP BETWEEN

PARENT COMPANY AND AFFILIATE

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS

HELD BETWEEN PARENT COMPANY AND

AFFILIATE

There are no contracts between parent and

subsidiary.

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OBJECT

The purpose of the Company is to operate the

gaming casino of Coquimbo, located in the

Coquimbo Region of Chile, in the terms set

forth in Law N° 19.995 and in its Regulations,

which allows developing games of chance,

machines, devices, and services authorized in

the respective operation permit or that in the

future are authorized by the Superintendence of

Casinos of Game or another relevant authority.

DIRECTORS, CEO AND KEY EXECUTIVES:

Antonio Martínez Seguí

Francisco Javier Martínez Seguí

Percy Ecclefield Arriaza

Gerardo Cood Schoepke

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW:

Enjoy S.A. directly participates with 1% and

indirectly through its direct subsidiary Enjoy

Gestión Limitada with a 99% stake in the

company.

Taxpayer ID 76.596.732-5

Legal status Joint stock company

Subscribed capital MMCh$ 460

Paid-in capital MMCh$ 230

It is the company that will apply for the Operation Permit to operate a gaming casino in

the city of Coquimbo.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY:

0,07%.

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY:

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

Gerardo Cood Schoepke: CEO of Parent

Company and subsidiary Director.

Percy Ecclefield Arriaza: Corporate Governance

and Compliance Officer and subsidiary Director.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY:

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY:

No hay contratos entre matriz y filial.

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OBJECT

The purpose of the company is to operate the

gaming Casino of Viña del Mar, located in the

Valparaiso Region of Chile, in the terms set forth

in Law N° 19.995 and in its Regulations, for the

development of games, equipment, and annexed

services authorized in the respective permit of

operation or that in the future are authorized

by the Superintendence of Gaming Casinos or

another relevant authority.

DIRECTORS, CEO AND KEY EXECUTIVES:

Antonio Martínez Seguí

Francisco Javier Martínez Seguí

Percy Ecclefield Arriaza

Gerardo Cood Schoepke

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. directly participates with 1% and

indirectly through its direct subsidiary Enjoy

Gestión Limitada with a 99% stake in the

company.

Taxpayer ID 76.598.536-6

Legal status Joint stock company

Subscribed capital MMCh$ 460

Paid-in capital MMCh$ 230

It is the company that will aply for the Operation Permit to operate a gaming casino in

the city of Viña del Mar.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY:

0,07%.

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY:

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

Gerardo Cood Schoepke: CEO of Parent

Company and subsidiary Director.

Percy Ecclefield Arriza: Corporate Governance

and Compliance Officer and subsidiary Director.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY:

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY:

There are no contracts held between parent and

subsidiary.

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OBJECT

The purpose of the Company is to operate

the Gaming Casino of Pucón, located in the

Araucanía Region of Chile, in the terms set forth

in Law N° 19.995 and in its Regulations, allowing

the development of games of chance, machines,

devices, and annexed services authorized in the

respective permit of operation or that in the

future are authorized by the Superintendence of

Casinos of Game or another relevant authority.

DIRECTORS, CEO AND KEY EXECUTIVES:

Antonio Martínez Seguí

Francisco Javier Martínez Seguí

Percy Ecclefield Arriaza

Gerardo Cood Schoepke

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. directly participates with 1%

and indirectly through its direct subsidiary

Inversiones Enjoy Gestión Limitada with 99% in

the capital of the company.

Taxpayer ID 76.596.746-5

Legal status Joint stock company

Subscribed capital MMCh$ 460

Paid-in capital MMCh$ 230

It is the Company that will apply for the Operation Permit of a gaming casino and

annexed services in the city of Pucón.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY

0,07%.

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

Gerardo Cood Schoepke: CEO of Parent

Company and subsidiary Director.

Percy Ecclefield Arriaza: Corporate Governance

and Compliance Officer and subsidiary Director.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY:

There are no contracts held between parent and

subsidiary.

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Taxpayer ID 76.607.165-1

Legal status Joint stock company

Subscribed capital MMCh$ 460

Paid-in capital MMCh$ 230

It is the Company that will apply for the Operation Permit of a gaming casino in the city

of Puerto Varas.

OBJECT

The purpose of the Company is to operate the

gaming casino of Puerto Varas, located at Los

Lagos Region in Chile, in the terms set forth in

Law N° 19.995 and in its Regulations, allowing

the development of games, equipment, and

annexed services authorized in the respective

operation permit or that in the future are

authorized by the Superintendence of Casinos of

Game or another relevant authority.

DIRECTORS, CEO AND KEY EXECUTIVES

Antonio Martínez Seguí

Francisco Javier Martínez Seguí

Percy Ecclefield Arriaza

Gerardo Cood Schoepke

CURRENT INTEREST PERCENTAGE OF THE

PARENT IN THE SUBSIDIARY’S CAPITAL AND

CHANGES OCCURRED IN THE PERIOD UNDER

REVIEW

Enjoy S.A. directly participates with 1% and

indirectly through its direct subsidiary Enjoy

Gestión Limitada with a 99% stake in the

company.

SUBSIDIARY INVESTMENT PROPORTION IN

THE ASSETS OF THE PARENT COMPANY:

0,07%.

LEGAL REPRESENTATIVES WHO WORK IN

THE PARENT AND THE SUBSIDIARY:

Francisco Javier Martínez Seguí: Chairman of

Parent Board and subsidiary Director.

Antonio Martínez Seguí: ViceChairman of Parent

Board and subsidiary Director.

Gerardo Cood Schoepke: CEO of Parent

Company and subsidiary Director.

Percy Ecclefield Arriaza: Corporate Governance

and Compliance Officer and subsidiary Director.

COMMERCIAL RELATIONS BETWEEN

PARENT AND SUBSIDIARY:

There is no commercial relationship between

parent and subsidiary.

SIGNIFICANT ACTS AND CONTRACTS HELD

BETWEEN PARENT AND SUBSIDIARY:

There are no contracts held between parent and

subsidiary.

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RES

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T The undersigned Directors and the

CEO of ENJOY S.A. declare under oath

that the information included in this

Annual Report covering the year 2016, is

completely reliable and truthful.

FRANCISCO JAVIER MARTÍNEZ SEGUÍ

President

RUT: 7.040.320-K

IGNACIO GONZÁLEZ MARTÍNEZ

Director

RUT: 7.053.650-1

OCTAVIO BOFILL GENZSCH

Director

RUT: 7.003.699-1

THOMAS MICHAEL JENKIN

Director

US Passport 450746385

IGNACIO PÉREZ ALARCÓN

Director

RUT: 9.979.516-6

ANTONIO MARTÍNEZ SEGUÍ

Vicepresident

RUT: 7.040.321-8

VICENTE DOMÍNGUEZ VIAL

Director

RUT: 4.976.147-3

PIER-PAOLO ZACCARELLI FASCE

Director

RUT: 8.334.529-2

IGNACIO GUERRERO GUTIÉRREZ

Director

RUT: 5.546.791-9

GERARDO COOD SCHOEPKE

CEO

RUT: 7.968.935-1

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TABLE OF CONTENTS

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For the years ended 31 December, 2016 and 2015.

Consolidated Financial Statements

Consolidated Statements of Financial Policies.

Statements of Income and Statements od Comprehensive Income

Consolidated Statements of Changes un Equity

Consolidated Statements of cash flows

Notes to the Consolidated Financial Statements

Independent Auditor’s Report

THCH$: Thousand of Chilean Pesos

CONSOLIDATED FINANCIAL STATEMENTS

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Deloitte

Auditores y Consultores Limitada

Rosario Norte 407, Las Condes, Santiago, Chile

RUT: 80.276.200-3

Fono: (56-2) 2729 7000 / Fax: (56-2) 2374 9177

[email protected]

www.deloitte.cl

INDEPENDENT AUDITOR’S REPORT

To the Shareholders of Enjoy S.A.

We have audited the accompanying consolidated financial statements of Enjoy S.A. and its subsidiaries

(the “Company”), which comprise the consolidated statements of financial position as of December 31,

2016 and 2015, and the related consolidated statements of income, comprehensive income, changes

in equity and cash flows for the years then ended, and the related notes to the consolidated financial

statements.

Management’s Responsibility for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial

statements in accordance with International Financial Reporting Standards as issued by the International

Accounting Standards Board; this includes the design, implementation, and maintenance of internal control

relevant to the preparation and fair presentation of consolidated financial statements that are free from

material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in Chile. Those

standards require that we plan and perform the audits to obtain reasonable assurance about whether the

consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures

in the consolidated financial statements. The procedures selected depend on the auditor’s judgment,

including the assessment of the risks of material misstatement of the consolidated financial statements,

whether due to fraud or error. In making those risk assessments, the auditor considers internal control

relevant to the Company’s preparation and fair presentation of the consolidated financial statements in

order to design audit procedures that are appropriate in the circumstances, but not for the purpose of

expressing an opinion on the effectiveness of the Company’s internal control. Accordingly, we express no

such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the

reasonableness of significant accounting estimates made by management, as well as evaluating the overall

presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for

our audit opinion.

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Opinion

In our opinion, the consolidated financial statements referred to above present fairly, in all material

respects, the financial position of Enjoy S.A. and its subsidiaries as of December 31, 2016 and 2015 and the

results of their operations and their cash flows for the years then ended in accordance with International

Financial Reporting Standards as issued by the International Accounting Standards Board.

Emphasis on a matter

At December 31, 2016, the Company presents a negative working capital of ThCLP$182,910,611. As specified

in greater detail in Note 3.2.c), Management is evaluating various alternatives for refinancing its main short-

term obligations. We have not changed our opinion on this matter.

March 10, 2017

Rolf Lagos F.

Rut: 12.235.917-4

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The accompanying notes are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AT DECEMBER 31, 2016 AND 2015

EXPRESSED IN THOUSANDS OF CHILEAN PESOS (THCH$)

Assets Note 12/31/2016 12/31/2015

ThCh$ ThCh$

Current assets

Cash and cash equivalents 8 41.589.583 33.017.974

Other assets, current 9 2.800.594 1.646.945

Trade debtors and other accounts receivable, current 10 37.440.928 37.916.200

Accounts receivable from related parties, current 11 1.814.993 2.029.101

Inventories 12 4.123.358 3.592.735

Current tax assets 13 7.164.736 6.768.304

Total current assets 94.934.192 84.971.259

Non-current assets

Other financial assets, non-current 14 14.093.592 51.945.597

Other assets, non-current 9 291.642 530.888

Accounts receivable from related parties, non-current 11 637.139 637.139

Investments in associates 16 7.810.939 9.568.409

Intangible assets other than goodwill 18 78.878.909 88.658.608

Goodwill 19 3.310.727 3.310.727

Property, plant and equipment 20 341.087.483 362.821.111

Deferred tax assets 21 33.627.094 31.193.333

Total non-current assets 479.737.525 548.665.812

Total assets 574.671.717 633.637.071

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The accompanying notes are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AT DECEMBER 31, 2016 AND 2015

EXPRESADO EN MILES DE PESOS CHILENOS (M$)

Equity and liabilities Note 12/31/2016 12/31/2015

ThCh$ ThCh$

Current Liabilities

Other current financial liabilities 22 89.810.778 63.131.096

Trade payables and other payables 24 43.569.001 48.634.442

Accounts payable to related parties, current 11 130.990.432 7.158.257

Current tax liability, current 13 1.615.802 2.093.288

Current provisions for employee benefits 25 267.411 944.631

Other current liabilities 26 11.591.379 11.282.722

Total current liabilities 277.844.803 133.244.436

Non-current liabilities

Other financial liabilities, non-current 22 136.180.103 152.478.360

Accounts payable to related parties, non-current 11 - 132.365.293

Deferred tax liabilities 21 49.436.319 55.446.011

Total non-current liabilities 185.616.422 340.289.664

Total liabilities 463.461.225 473.534.100

Equity

Issued capital 27 119.444.842 119.444.842

Retained earnings (22.575.635) 18.743.561

Share premium 5.465.901 5.465.901

Accumulated other comprehensive income 27 (26.153.247) (18.500.791)

Equity attributable to owners of the parent 76.181.861 125.153.513

Non-controlling interests 27 35.028.631 34.949.458

Equity 111.210.492 160.102.971

Equity and liabilities 574.671.717 633.637.071

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The accompanying notes are an integral part of these consolidated financial statements.

STATEMENTS OF INCOME AND STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015

EXPRESSED IN THOUSANDS OF CHILEAN PESOS (THCH$)

EXCEPT EARNINGS PER SHARE PRESENTED IN PESOS

Income Statements Note 12/31/2016 12/31/2015

ThCh$ ThCh$

Revenue 28 273.564.334 233.237.797

Cost of sales 28 (216.165.605) (181.968.052)

Gross margin 57.398.729 51.269.745

Administrative expenses (29.426.959) (26.961.624)

Other expenses 36 (5.516.115) (858.574)

Other gains (losses) 28 (42.097.431) 1.410.711

Operating Margin (19.641.776) 24.860.258

Finance income 180.738 727.311

Finance costs 28 (16.898.519) (17.614.143)

Share of profit (loss) of associates 16 889.777 517.464

Foreign exchange gain/loss 29 (1.562.249) 6.173.617

Indexation for designated assets/liabilities for inflation 28 (1.253.417) (2.462.996)

Income before tax (38.285.446) 12.201.511

Income tax (expense) benefit 21 1.176.931 (2.273.171)

Net Income derived from continuous operations (37.108.515) 9.928.340

Net Income (37.108.515) 9.928.340

Net Income, attributable to:

Net Income, attributable to owners of parent 30 (40.119.278) 5.999.600

Net Income, attributable to non-controlling interests 27 3.010.763 3.928.740

Net Income (37.108.515) 9.928.340

Earnings per share (basic and diluted) 30 (17,02) 2,54

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The accompanying notes are an integral part of these consolidated financial statements.

STATEMENTS OF INCOME AND STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015

Statement of Comprehensive Income Note 12/31/2016 12/31/2015

M$ ThCh$

Net Income (37.108.515) 9.928.340

Items that may be reclassified subsequently to profit or loss:

Gain (loss) due to translation differences in associates and joint venture 16 (1.897.253) (2.578.357)

Gain (loss) due to translation differences in subsidiaries (5.888.737) 14.160.659

Total gain (loss) due to translation differences, before taxes 27 (7.785.990) 11.582.302

Cash flow hedges

Gain (loss) derived from cash flow hedges, before taxes 151.519 (1.030.628)

Other comprehensive income, before taxes, cash flow hedges 23 151.519 (1.030.628)

Other comprehensive income, , before taxes (7.634.471) 10.551.674

Income tax relating to items that may be reclassified subsequently to profit or loss

Income tax relating to Cash flow hedges (36.365) -

Income tax (36.365) -

Other comprehensive income for the year, net of income tax (7.670.836) 10.551.674

Comprehensive income (44.779.351) 20.480.014

Comprehensive income attributable to

Comprehensive income attributable to owners of the company (47.790.114) 16.551.274

Comprehensive income attributable to non-controlling interests 3.010.763 3.928.740

Comprehensive income (44.779.351) 20.480.014

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The accompanying notes are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the year ended 31 December 2016

Issued Capital

Share Premium

Foreign Currency

Translation Reserve

Reserves For Cash Flow

Hedges

Other Reserves

Retained Earnings

Equity Attributable

To Owners Of The Parent

Non- Controlling

InterestsTotalAccumulated

other comprehensive

income

ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$

Equity at opening of term 119.444.842 5.465.901 11.681.035 (890.326) (29.291.500) (18.500.791) 18.743.561 125.153.513 34.949.458 160.102.971

Increase (decrease) in equity for changes in accounting policies

- - - - - - - - -

Initial equity restated 119.444.842 5.465.901 11.681.035 (890.326) (29.291.500) (18.500.791) 18.743.561 125.153.513 34.949.458 160.102.971

Equity changes

Equity changes

Comprehensive income

Earnings (losses) - - - - - (40.119.278) (40.119.278) 3.010.763 (37.108.515)

Other comprenhensive income - (7.785.990) 115.154 - (7.670.836) - (7.670.836) - (7.670.836)

Comprehensive income - - (7.785.990) 115.154 - (7.670.836) (40.119.278) (47.790.114) 3.010.763 (44.779.351)

Dividends - - - - - - (1.199.918) (1.199.918) (2.355.755) (3.555.673)

Increase (decrease) due to transfers and other changes in equity (i) - - - - 18.380 18.380 - 18.380 (575.835) (557.455)

Increase (decrease) in equity - - (7.785.990) 115.154 18.380 (7.652.456) (41.319.196) (48.971.652) 79.173 (48.892.479)

Equity 119.444.842 5.465.901 3.895.045 (775.172) (29.273.120) (26.153.247) (22.575.635) 76.181.861 35.028.631 111.210.492

(i) See note 27.

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The accompanying notes are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the year ended 31 December 2015

Issued Capital

Share Premium

Foreign Currency

Translation Reserve

Reserves For Cash Flow

Hedges

Other Reserves (iii)

Accumulated other

comprehensive income

Retained Earnings

Equity Attributable

To Owners Of The Parent

Non- Controlling

InterestsTotal

ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$

Equity at opening of term 119.444.842 5.465.901 98.733 140.302 1.997.826 2.236.861 15.210.605 142.358.209 9.351.365 151.709.574

Increase (decrease) in equity for changes in accounting policies

- - - - - - - - -

Patrimonio inicial Reexpresado 119.444.842 5.465.901 98.733 140.302 1.997.826 2.236.861 15.210.605 142.358.209 9.351.365 151.709.574

Equity changes

Equity changes (1) - - - - - - - - 19.498.874 19.498.874

Comprehensive income

Earnings (losses) - - - - - 5.999.600 5.999.600 3.928.740 9.928.340

Other comprenhensive income - 11.582.302 (1.030.628) - 10.551.674 - 10.551.674 - 10.551.674

Comprehensive income - - 11.582.302 (1.030.628) - 10.551.674 5.999.600 16.551.274 3.928.740 20.480.014

Dividends (ii) - - - - - (2.466.644) (2.466.644) (1.062.558) (3.529.202)

Increase (decrease) due to transfers and other changes in equity - - - - (31.289.326) (31.289.326) - (31.289.326) 3.233.037 (28.056.289)

Increase (decrease) in equity - - 11.582.302 (1.030.628) (31.289.326) (20.737.652) 3.532.956 (17.204.696) 6.099.219 (11.105.477)

Equity 119.444.842 5.465.901 11.681.035 (890.326) (29.291.500) (18.500.791) 18.743.561 125.153.513 34.949.458 160.102.971

(i) Preferred share issuance of Inversiones Inmobiliaras Enjoy S.p A. (See note 1).

(ii) Includes provision of minimum dividend of 30% of income for the year.

(iii) See note 27.

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The accompanying notes are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015

STATED IN THOUSANDS OF CHILEAN PESOS (THCH$)

Cash flow statementsNote 12/31/2016 12/31/2015

ThCh$ ThCh$

Cash flows from (used in) operating activities

Collection from operating activities

Receipts from the sale of goods and services 305.884.710 262.762.409

Payments

Payments to suppliers for goods and services (110.235.969) (103.086.970)

Payments to and account of employees (73.547.450) (68.591.539)

Other payments for operating activities (77.039.825) (58.680.013)

Paid (reimbursed) income tax (5.539.822) (4.790.735)

Cash flows from (used in) operating activities 39.521.644 27.613.152

Cash flows from (used in) investing activities

Loans provided to related parties - (1.230.664)

Purchase of property, plant and equipment (9.472.665) (8.592.533)

Purchase of Intangible assets (885.612) (417.403)

Collections from related parties 141.188 6.869.696

Interest received 180.738 877.743

Cash acquired in the acquisition of subsidiary under common ownership interest. - 3.035.029

Cash flows from (used in) investing activities (10.036.351) 541.868

Cash flows from (used in) financing activities

Proceeds from issuance of shares - 19.498.874

Proceeds from long-term loans received 1.449.357 -

Proceeds from short – term loans received 84.548.999 21.835.894

Loans from related parties 530.735 1.068.925

Repayments of loans received (77.696.771) (32.368.559)

Payment of liabilities under finance leases (4.008.556) (4.395.301)

Repayment of loans from related parties (1.217.497) (716.000)

Dividends paid (5.528.584) (3.403.670)

Interest paid (17.642.021) (17.052.262)

Other cash inflows (outflows) (193.490) (828.483)

Cash flows derived from (used in) financing activities (19.757.828) (16.360.582)

Increase (decrease) in cash and cash equivalents 9.727.465 11.794.438

Effects of exchange rate changes on the balance of cash held in foreign currencies

Effects of exchange rate changes on the balance of cash held

in foreign currencies (1.155.856) 281.976

Net increase (decrease) of cash and cash equivalents 8.571.609 12.076.414

Cash and cash equivalents at the beginning of the year 8 33.017.974 20.941.560

Cash and cash equivalents at the end of the year 8 41.589.583 33.017.974

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INDEX

NOTE 1 - CORPORATE INFORMATION 1NOTE 2 - SUMMARY OF KEY ACCOUNTING POLICIES 8NOTE 3 - RISK MANAGEMENT POLICIES 21NOTE 4 - MANAGEMENT ESTIMATES, JUDGMENTS, AND CRITERIA 28NOTE 5 - ACCOUNTING CHANGE 29NOTE 6 - NEW ACCOUNTING PRINCIPLES 30NOTE 7 - SEGMENT REPORTING 31NOTE 8 - CASH AND CASH EQUIVALENTS 33NOTE 9 - OTHER ASSETS, CURRENT AND NON-CURRENT 33NOTE 10 - TRADE AND OTHER RECEIVABLES, CURRENT 34NOTE 11- BALANCES AND TRANSACTIONS WITH RELATED ENTITIES 35NOTE 12 - INVENTORIES 39NOTE 13 - CURRENT TAX RECEIVABLE ANDPAYABLE 40NOTE 14 - OTHER FINANCIAL ASSETS, NON-CURRENT 41NOTE 15 - INTEREST IN SUBSIDIARIES 43NOTE 16 - INVESTMENTS IN ASSOCIATES 45NOTE 17 - SHARES IN JOINT VENTURES 47NOTE 18 - INTANGIBLE ASSETS OTHER THAN GOODWILL 47NOTE 19 - GOODWILL 51NOTE 20 - PROPERTY, PLANT AND EQUIPMENT 53NOTE 21 - DEFERRED TAXES AND INCOME TAXES 58NOTE 22 - OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES 61NOTE 23 - FINANCIAL INSTRUMENTS 66NOTE 24 - TRADE ACCOUNTS PAYABLE AND OTHER ACCOUNTS PAYABLE 73NOTE 25 - CURRENT PROVISIONS FOR EMPLOYEE BENEFITS 73NOTE 26 - OTHER FINANCIAL LIABILITIES, CURRENT AND NON-CURRENT 73NOTE 27 - EQUITY 74NOTE 28 - COMPOSITION OF RELEVANT RESULTS 78NOTE 30 - EARNINGS PER SHARE 80NOTE 31 - CONTINGENCIES AND ENGAGEMENTS 81NOTE 32 - ADMINISTRATIVE EXPENSES 89NOTE 33 - GUARANTEES RECEIVED FROM THIRD PARTIES 89NOTE 34 - GUARANTEES RECEIVED 89NOTE 35 - ASSETS AND LIABILITIES BY CURRENCY 90NOTE 36 - OTHER EXPENSES 91NOTE 37 - SUBSEQUENT EVENTS 92

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NOTE 1 CORPORATE INFORMATION

Enjoy S.A. is a corporation that uses the name “Enjoy” (www.

enjoy.cl) henceforth Enjoy company, Taxpayer ID No. 96,970,380-

7, located at Avenida Presidente Riesco No. 5,711, 15th Floor, Las

Condes, Santiago, Chile. Enjoy was incorporated as a limited

company by public deed dated 23 October 2001. On 9 June

2009, the company was registered in the Securities Register of

the Chilean Securities and Insurance Commission under No. 1,033

and is subject to audit.

Its parent and holding companies are the companies: Inversiones

e Inmobiliaria Almonacid Limitada and Inversiones Cumbres

Limitada. (Together, the “Controlling Shareholders”), who

together own approximately 57.1% of the common stock.

On 8 July 2009, Enjoy S.A. placed 30% of the total shares of the

company in the Stock Exchange of Santiago.

Direct and indirect subsidiaries are represented by closed

corporations, limited liability companies, and joint stock

companies.

With the enactment of Law No. 20,382 governing Corporate

Governance of companies and according to Circular No. 600 of

the Chilean Securities and Insurance Commission; it is set that

the registration for entities other than issuers of Public-Offering

Securities will be removed from the Register of Securities, as

of 1 January 2010, becoming part of and enrolled in the new

Special Register of Reporting Entities, and shall be subject to the

preparation and delivery of continuous information in accordance

with the provisions of the General Regulation No. 364 which

repealed the General Rule No. 284. Subsidiaries and associates of

Enjoy S.A. enrolled in the Special Register of Reporting Entities

are; Operations El Escorial S.A., (company awarded the license to

operate the Casino of Antofagasta, under No. 155), the company

Rantrur S.A., (awarded the license from the Casino de Castro,

under No. 194), the company Casino Colchagua S.A., (awarded the

license from the Casino de Santa Cruz, under No. 167) and Casino

Rinconada S.A. (before Salguero Hotels Chile S.A., awarded the

license from the Casino de Rinconada, under No. 176).

Currently, Enjoy S.A. indirectly holds ownership to develop and

operate seven Casinos in Chile. Of these casinos, the gambling

venues located in the cities of Coquimbo, Viña del Mar, and Pucon,

abide by municipal concessions granted prior to the enactment

of Law No. 19,995, which are in force until 2015. On 11 August

2015, law No.20.856 was enacted, modifying law N” 19.995, which

promotes the operation of municipal casinos up to 31 December

2017. In turn, gaming casinos located in the cities of Antofagasta,

Santa Cruz, Castro and Rinconada de los Andes, were awarded

operating licenses by the Superintendency of Casinos under said

Act, which remain valid for a period of 15 years counting from

the date of commencement of operations. Lastly, Enjoy S.A. has

an unlimited license to operate a gaming casino in the city of

Mendoza, Argentina through Cela S.A., a joint venture, and on 23

April 2013 the Ministry of Economy and Finance of the Eastern

Republic of Uruguay authorized Enjoy Consultora S.A. as operator

of Conrad Casino in Punta del Este whose license extends until

31 December 2036. Finally, as of February 19, 2016, Enjoy Caribe

S.p.A. - Sucursal Colombia, a subsidiary of Enjoy, holds a license

for the operation of a gaming casino on the island of San Andrés

in Colombia, whose license has a 5-year duration up to 2021.

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

AT DECEMBER 31, 2016 AND 2015

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BOARD

The company’s current directors are:

Name Taxpayer ID Position

Francisco Javier Martínez Seguí 7.040.320-K Chairman

Antonio Claudio Martínez Seguí 7.040.321-8 Vice-Chairman

Ignacio Guerrero Gutierrez 5.546.791-9 Director

Ignacio Gonzalez Martínez 7.053.650-1 Director

Ignacio Perez Alarcón 9.979.516-6 Director

Octavio Bofill Genzsch 7.003.699-1 Director

Vicente Domínguez Vial 4.976.147-3 Director

Pier Paolo Zaccarelli Fasce 8.334.529-2 Director

Thomas Jenkin Foreign Director

DIRECTORS COMMITTEE

The current directors committee is composed of:

Name Taxpayer ID Position

Vicente Domínguez Vial 4.976.147-3 Chairman

Ignacio Guerrero Gutierrez 5.546.791-9 Director

Ignacio Perez Alarcón 9.979.516-6 Director

SHAREHOLDER INFORMATION

The 12 largest shareholders of the company are the following:

Name Nº of Actions Nº of Actions Percentage

subscribed paid

1 INV E INMOB ALMONACID LTDA 1.116.590.430 1.116.590.430 47,36%

2 COMPASS SMALL CAP CHILE FONDO DE INVERSION 269.845.099 269.845.099 11,45%

3 SIGLO XXI FONDO DE INVERSION 234.954.610 234.954.610 9,97%

4 INVERSIONES CUMBRES LIMITADA 229.732.525 229.732.525 9,74%

5 HARRAHS INTERNATIONAL HOLDING COMPANY INC 107.299.242 107.229.242 4,55%

6 LARRAIN VIAL S.A. CORREDORA DE BOLSA 89.081.417 89.081.417 3,78%

7 INVERSIONES MEGEVE LTDA 86.675.300 86.675.300 3,68%

8 FONDO DE INVERSION SANTANDER SMALL CAP 63.710.686 63.710.686 2,70%

9 BOLSA DE COMERCIO DE SANTIAGO BOLSA DE VALORES 11.993.081 11.993.081 0,51%

10 FONDO MUTUO SANTANDER ACCIONES CHILENAS 11.406.656 11.406.656 0,48%

11 BANCHILE C DE B S.A. 10.681.319 10.681.319 0,45%

12 CHILE FONDO DE INVERSION SMALL CAP 9.231.059 9.231.059 0,39%

Total 2.241.131.424 2.241.131.424 95,06%

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Subsidiaries included in these consolidated financial statements are as follows:

Country Company Taxpayer ID RelationshipFunctional 12/31/2016 12/31/2015 Consolidation

Currency Direct Indirect Total Total Method

Chile Inversiones Andes Entretención Ltda. 76.043.559-7 Subsidiary USD 0,00% 100,00% 100,00% 100,00% Global

Chile Campos del Norte S.A. 79.981.570-2 Subsidiary CLP 12,50% 87,50% 100,00% 100,00% Global

Chile Enjoy Consultora S.A. 76.470.570-K Subsidiary CLP 0,02% 99,98% 100,00% 100,00% Global

Chile Enjoy Gestión Ltda. 96.976.920-4 Subsidiary CLP 99,98% 0,02% 100,00% 100,00% Global

Chile Inmobiliaria Rinconada S.A. 76.236.642-8 Subsidiary CLP 0,00% 70,00% 70,00% 70,00% Global

Chile Inmobiliaria Kuden S.p.A. 96.929.700-0 Subsidiary CLP 0,45% 99,55% 100,00% 100,00% Global

ChileInmobiliaria Proyecto Integral Antofagasta

S.A.76.306.290-2 Subsidiary CLP 0,00% 75,00% 75,00% 75,00% Global

Chile Inmobiliaria Proyecto Integral Castro S.p.A. 76.307.270-3 Subsidiary CLP 1,00% 99,00% 100,00% 100,00% Global

ChileInmobiliaria Proyecto Integral Coquimbo

S.p.A.76.528.170-9 Subsidiary CLP 0,01% 99,99% 100,00% 100,00% Global

Chile Operaciones Integrales Isla Grande S.A. 99.597.250-6 Subsidiary CLP 1,00% 99,00% 100,00% 100,00% Global

Chile Operaciones Integrales Coquimbo Ltda. 96.940.320-K Subsidiary CLP 10,56% 89,44% 100,00% 100,00% Global

Chile Inversiones Enjoy S.p.A. 76.001.315-3 Subsidiary CLP 100,00% 0,00% 100,00% 100,00% Global

Chile Inversiones Inmobiliarias Enjoy S.p.A. (2) 76.242.574-2 Subsidiary CLP 63,20% 0,00% 63,20% 63,20% Global

Chile Inversiones Vista Norte S.A. 99.595.770-1 Subsidiary CLP 0,00% 75,00% 75,00% 75,00% Global

Chile Kuden S.A. 96.725.460-6 Subsidiary CLP 1,00% 99,00% 100,00% 100,00% Global

Chile Masterline S.A. 79.646.620-0 Subsidiary CLP 1,00% 99,00% 100,00% 100,00% Global

Chile Operaciones El Escorial S.A. 99.597.870-9 Subsidiary CLP 0,75% 74,25% 75,00% 75,00% Global

Chile Operaciones Turísticas S.A. 96.824.970-3 Subsidiary CLP 0,63% 99,37% 100,00% 100,00% Global

Chile Rantrur S.A. 99.598.510-1 Subsidiary CLP 1,00% 99,00% 100,00% 100,00% Global

Chile Casino Rinconada S.A. 99.598.900-K Subsidiary CLP 0,00% 70,00% 70,00% 70,00% Global

Chile Slots S.A. 96.907.730-2 Subsidiary CLP 0,00% 100,00% 100,00% 100,00% Global

Chile Operaciones Integrales Chacabuco S.A. 76.141.988-9 Subsidiary CLP 0,00% 70,00% 70,00% 70,00% Global

Chile Inversiones y Servicios Guadalquivir S.A. 76.837.530-5 Subsidiary CLP 0,00% 70,00% 70,00% 70,00% Global

Argentina Yojne S.A. Foreign Subsidiary ARS 0,00% 100,00% 100,00% 100,00% Global

Croacia Latino Usluge D.O.O Foreign Subsidiary HRK 0,00% 100,00% 100,00% 100,00% Global

Uruguay Baluma S.A. Foreign Subsidiary USD 0,00% 45,00% 45,00% 45,00% Global

Chile Enjoy Caribe S.p.A. 76.472.831-9 Subsidiary CLP 0,00% 100,00% 100,00% 100,00% Global

Colombia Enjoy Caribe S.p.A. Sucursal Colombia Foreign Subsidiary COL 0,00% 100,00% 100,00% 100,00% Global

Chile Antonio Martínez y Cía. (1) 77.438.400-6 Subsidiary CLP 0,00% 100,00% 100,00% 100,00% Global

Chile Casino de Iquique S.A. (3) 76.607.278-K Subsidiary CLP 1,00% 99,00% 100,00% 0,00% Global

Chile Casino de La Bahía S.A. (4) 76.596.732-5 Subsidiary CLP 1,00% 99,00% 100,00% 0,00% Global

Chile Casino del Mar S.A. (5) 76.598.536-6 Subsidiary CLP 1,00% 99,00% 100,00% 0,00% Global

Chile Casino del Lago S.A. (6) 76.596.746-5 Subsidiary CLP 1,00% 99,00% 100,00% 0,00% Global

Chile Casino de Puerto Varas S.A. (7) 76.607.165-1 Subsidiary CLP 1,00% 99,00% 100,00% 0,00% Global

Changes in the consolidation between 31 December 2015 and 31

December 2016 are detailed below:

1. On 31 December 2015, an agreement was finalized between

the owners of the companies Antonio Martínez y Cía. (AMC), an

entity under common ownership interest and Enjoy Gestión Ltda.

(subsidiary of Enjoy S.A.), which sets forth that from the date of

the agreement the AMC owners transfer control over the AMC to

the company Enjoy Gestión Ltda, including transfer of the right

to receive all the results generated and by AMC starting from

the date of this agreement. The previously made assignment of

rights is intended to gain control of the Company and, this way,

prepare for the process of tendering and awarding the permit for

operating the Viña del Mar Casino under the new regulation.

2. On 21 January 2015, the Superintendency of Securities

and Insurance was informed that the subsidiary, Inversiones

Inmobiliarias Enjoy S.p.A., direct subsidiary of Enjoy, through

which it develops its Chilean real estate business, had successfully

completed a capital increase totaling $19,498,874,230, which was

assigned to the Private Investment Fund BP Acciones Preferred

Shares, where it will hold 36.8% of company, represented by

Series B preferred shares. Enjoy S.A. holds 63.2 % through Series A

ordinary shares. This fulfills the company’s plans of incorporating a

minority partner to better develop its Chilean real estate business,

which has been given the rights to preserve the real estate nature

of the investment.

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3. On September 2, 2016, the company Casino de Iquique S.A. was

incorporated by public deed of September 2, 2016. Its corporate

purpose is to exploit the gaming casino in Iquique, Region of

Tarapacá, under the terms specified in law 19,995 and its enabling

regulations, for which games of chance, machines, implements and

ancillary services authorized in the respective operating permit,

or which are authorized in the future by the Superintendency

of Gaming Casinos or any other authority replacing it, may be

developed. The controlling shareholder of Casino de Iquique S.A.

is the subsidiary Enjoy Gestión Ltda.

4. On July 26, 2016, the indirect subsidiary Casino de la Bahía S.A

was incorporated. Its corporate purpose is to exploit the gaming

casino of Coquimbo, Region of Coquimbo, under the terms of law

19,995 and its enabling regulations, for which games of chance,

machines, implements and ancillary services authorized in the

respective operating permit, or which are authorized in the future

by the Superintendency of Gaming Casinos or any other authority

replacing it, may be developed. The controlling shareholder of

Casino de la Bahía S.A. is the subsidiary Enjoy Gestión Ltda.

5. On July 26, 2016, the indirect subsidiary Casino del Mar S.A

was incorporated. Its corporate purpose is to exploit the gaming

casino of Viña del Mar, Region of Valparaiso, under the terms of

law 19,995 and its enabling regulations, for which games of chance,

machines, implements and ancillary services authorized in the

respective operating permit, or which are authorized in the future

by the Superintendency of Gaming Casinos or any other authority

replacing it, may be developed. The controlling shareholder of

Casino del Mar S.A. is the subsidiary Enjoy Gestión Ltda.

6. On July 26, 2016, the indirect subsidiary Casino del Lago S.A

was incorporated. Its corporate purpose is to exploit the gaming

casino of Pucón, Region of La Araucanía, under the terms of law

19,995 and its enabling regulations, for which games of chance,

machines, implements and ancillary services authorized in the

respective operating permit, or which are authorized in the future

by the Superintendency of Gaming Casinos or any other authority

replacing it, may be developed. The controlling shareholder of

Casino del Lago S.A. is the subsidiary Enjoy Gestión Ltda.

7. On September 2, 2016, the indirect subsidiary Casino de

Puerto Varas S.A was incorporated. Its corporate purpose is to

exploit the gaming casino of Puerto Varas, Region of Los Lagos,

under the terms of law 19,995 and its enabling regulations, for

which games of chance, machines, implements and ancillary

services authorized in the respective operating permit, or which

are authorized in the future by the Superintendency of Gaming

Casinos or any other authority replacing it, may be developed.

The controlling shareholder of Casino de Puerto Varas S.A. is the

subsidiary Enjoy Gestión Ltda.

The table below lists the companies that make up each of the

Gaming Casinos:

Infrastructures Companies

Antofagasta

Casino Operaciones El Escorial S.A.

Hotel, Food & Beverages Inversiones Vista Norte S.A.

Property and Facilities Inmobiliaria Proyecto Integral Antofagasta S.A.

Coquimbo

Casino Campos del Norte S.A.

Hotel, Food & Beverages Operaciones Integrales Coquimbo Ltda.

Property and Facilities Inmobiliaria Proyecto Integral Coquimbo S.p.A.

Rinconada

Casino Casino Rinconada S.A.

Hotel, Food & Beverages Operaciones Integrales Chacabuco S.A.

Property and Facilities Inmobiliaria Rinconada S.A.

Viña del Mar (*)

Arriendo de máquinas de azar Slots S.A.

Casino Antonio Martínez y Cía.

Hotel, Food & Beverages Masterline S.A.

Colchagua Casino Casino de Colchagua S.A.

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Pucón

Casino Kuden S.A.

Hotel, Food & Beverages Kuden S.A.

Property and Facilities Inmobiliaria Kuden S.p.A.

Chiloé

Casino Rantrur S.A.

Hotel, Food & Beverages Operaciones Integrales Isla Grande S.A.

Property and Facilities Inmobiliaria Proyecto Integral Castro S.p.A.

Mendoza

Casino Cela S.A.

Hotel, Food & Beverages Cela S.A.

Property and Facilities Cela S.A.

Uruguay

Casino Baluma S.A.

Hotel, Food & Beverages Baluma S.A.

Property and Facilities Baluma S.A.

Colombia

Casino Enjoy Caribe S.p.A. - Sucursal Colombia

AA & BB Enjoy Caribe S.p.A. - Sucursal Colombia

Property and Facilities Enjoy Caribe S.p.A. - Sucursal Colombia

(*) The Municipality of Viña del Mar owns the operation facilities for these comprehensive projects.

OPERATING CONDITIONS FOR GAMING CASINOS

Below are the operating conditions for gaming Casinos subject

to Municipal Licensing and Gaming Casinos according to Law

No.19,995 (modified by Law No.20,856):

i) Municipal licensing

On 11 August 2015, law No.20,856 was enacted, modifying law N”

19,995, which promotes the operation of municipal casinos up to

31 December 2017.

Coquimbo CasinoAccording to the licensing agreement signed with the Municipality

of Coquimbo, the subsidiary company Campos del Norte S.A. is the

operator of Coquimbo Casino games. Additionally, the subsidiary

Operations Integral Coquimbo Ltda. is the operator of the Hotel

de la Bahía, food and beverage services and other supplementary

services for the comprehensive project Enjoy Coquimbo, including

the spa and convention center. The Municipality of Coquimbo gave

these companies the commercial operation of Coquimbo city’s

casino and its annexes, as well as the commercial operation of

dining rooms, kitchens, bar, nightclubs, catering, cabaret, discos,

and other related services provided by said facilities and generally

all operations or acts authorized by grant or proposal awarded by

the Municipality of Coquimbo. By means of exempt decree No.

1.544 of August 1976, the Municipality of Coquimbo, granted the

concession of the commercial exploitation of Coquimbo Casino

Games to Mr. Guillermo Campos Fauze. The deadline granted by

the Municipal Concession was initially for five years, automatically

renewable for similar periods (deed dated 16 July 1984, issued

in the city of Coquimbo, at Notary Don Oscar Suarez Alvarez).

Subsequently, by deed dated 16 September 1996, the City Council

agreed to extend the concession for a further period of five years.

By deed of 22 July 2005, the City Council agreed to extend the

concession for the operation of Coquimbo Casino to the company

Campos del Norte S.A. from 2005 to 2015 (See Note 1i Municipal

licensing). Enjoy controls the land, buildings, and operating assets

of this business unit, which strengthens its chance to renew this

concession. This comprehensive project is subject to a municipal

share of 20%, calculated over gaming revenue (WIN), VAT

discounted.

Viña del Mar Casino

The company Slots S.A. owns slot machines of Casino Viña del Mar

under an operating and maintenance contract. The company makes

these machines available to the licensee of Casino de Viña del Mar,

Antonio Martinez y Cia. Additionally, the company Masterline S.A.

is the sub–licensee of the food and beverage business and hotel of

Viña del Mar Casino. By the exempt Decree No. 2,769, of 24 May

2000, the Municipality of Viña del Mar, granted trade operation

rights of Casino Games Viña del Mar and the food and beverage

franchise thereof to Antonio Martinez and company (see Note 1,

Section 4.). The term by which both municipal franchises were

granted was from 15 September 2000 to 14 September 2015. On

September 14, 2015, Enjoy S.A. became aware of the extension,

and as of that date, the Concession Agreement of the Municipal

Casino of Viña del Mar for the Commercial Exploitation of Gaming

and the commercial exploitation of Food and Beverage was

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held between the Municipality of Viña del Mar and the company

Antonio Martinez y Cia. (related company of Enjoy before the

accounting treatment under common control). This extension will

be valid until 31 December 2017.

Enjoy has important operational assets that strengthen its

position to renew the franchise. This comprehensive project must

give the Municipality of Viña del Mar a guaranteed percentage

not below 24% of the net income from the operation of table

games and bingo of the three seasons (Law 4,940 , Law 17,169

and Law 18,001), and 60% of the net income for the operation of

slot machines. The food and beverage franchise has a fixed value

revenue of UF 50,000, which is paid quarterly in advance.

Pucón CasinoThe franchise agreement signed between the Municipality of

Pucon and the company Kuden S.A. (operator of Casino Pucón

and the Gran Hotel Pucón) enables the commercial operation

of Pucon Casino Games and its by-products, as well as the

commercial operation of dining rooms, kitchens, bar, nightclubs,

self-service, cabaret, discos, and other services or by-products

provided in the mentioned property and, in general, all holdings

or acts authorized by grant or tender awarded by the Municipality

of Pucon. By exempt decree No. 387, dated March 27, 1995, the

Municipality of Pucon, granted the franchise of the commercial

operation of the gaming casino in Pucon to Kuden S.A. Finally,

through Exempt Decree No. 392 of 17 February 2006, the City

Council awarded an extension of the concession agreement

until 31 December 2015 (See Note 1i Municipal licensing). Enjoy

controls the land, buildings and operational assets of this business

unit, which strengthens its chance to renew this concession. This

comprehensive project is subject to a municipal share of 10%

on gaming revenue (WIN), VAT discounted, and a fixed annual

payment of 25,000 UF.

ii) Gaming casinos subject to Law 19,995, (modified by Law 20,856)The operating permit is a formal authorization issued by the

government of Chile, through the Resolution Council of the

Superintendency of Casinos to operate a gaming casino and

games of chance. The operating permit includes operating licenses

for games of chance and related services. Games of chance and

related bets can only be carried out by an incorporated operating

company, constituted pursuant to Law No. 19,995, in the gaming

enclosure authorized by that Superintendency and only after the

authorized casino has received an operational startup certificate

that accounts for compliance with all legal and regulatory

requirements.

Antofagasta Proyecto IntegralBy Resolution No. 175 of 21 July 2006, the Superintendency of

Casinos granted the operating license to Operaciones el Escorial

S.A., to operate a casino in the city of Antofagasta. Said permit is

valid for a period of 15 years from the issuance date of a certificate

referred to in Clause No. 28 of Law No.19,995. On 11 November

2008, the Superintendency of Casinos issued a certificate

stating that the company is authorized to operate casino games

and related services, mentioned in the said operating permit.

The operating permit is valid until 11 November 2023. This

comprehensive project is subject to a tax of 20% on game win

revenues (WIN), VAT discounted.

Proyecto Integral ColchaguaBy resolution no. 346 of 27 December 2006, the Superintendency

of Casinos, granted the operating license to Casino de Colchagua

S.A, to operate a casino in the town of Santa Cruz. That license has

a term of 15 years from the granting date of the certificate referred

to in Article No. 28 of Law No. 19,995; this is from the 12 September

2008. This certificate states that the Company is authorized to

initiate the operation of casino gaming and complementary

services, included in the operating permit authorized for a period

of 15 years, expiring on 12 September 2023. This comprehensive

project it is subject to a tax of 20% on income from games won

(WIN) less VAT.

Rinconada Proyecto IntegralBy Resolution No. 343 of 26 December 2006, the Superintendency

of Casino Games granted the operating license to Casino

Rinconada S.A., to operate a casino in the city of Rinconada. Said

permit will have a term of 15 years from the date of issuance of a

certificate referred to in Clause No. 28 of Law No. 19,995. On 29

August 2009 the Superintendency of Casinos issued a certificate

allowing the company to start the operation of casino gaming

and related services, included in the said operating permit. The

operating permit of Casino Rinconada S.A. is valid until August

29, 2024. This comprehensive project is subject to a tax of 20% on

game win revenues (WIN), VAT discounted.

Castro Proyecto IntegralBy exempt resolution No. 278 of 20 August 2008, the

Superintendency of Casinos, granted permission to Rantrur S.A., to

operate a casino in the city of Castro. Said permit will have a term

of 15 years from the date of issuance of the certificate referred

to in Article No. 28 of Law No. 19.995. By exempt Resolution

No. 640 of December 24, 2009, the Superintendency of Casinos

(SCJ) granted Rantrur S.A. an extension of deadlines to finish

the gaming casino of Castro and the rest of the project’s works,

so the new delivery date of the gaming casino was set to expire

on 8 May 2011 and its complementary works on 8 September

2012. The Superintendency of Casinos (SCJ ) gave Rantrur S.A.

(Enjoy Castro ) an extension of 12 months to complete the works

of its gaming casino and 18 months for additional works of its

comprehensive project, so the new dates for the final delivery of

the works were 8 May 2012 and 8 March 2014, respectively. This

decision considered the earthquake that struck the country on 27

February 2010. By exempt Resolution No. 299 of 7 May 2012, the

Superintendency of Casinos (SCJ) granted the license to operate

Enjoy Chiloe casino from the same date and for the next 15 years.

The operating permit Casino Chiloe is valid until 8 May 2027. This

comprehensive project is subject to a tax of 20% on game win

revenues (WIN), VAT discounted

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NOTE 2 SUMMARY OF KEY ACCOUNTING POLICIES

APPROVAL OF FINANCIAL STATEMENTS

The Board of Directors of Enjoy S.A. has approved these

consolidated financial statements on 6 March 2017. Below is a

description of the key accounting policies adopted in preparing

the consolidated financial statements of Enjoy S.A. and its

subsidiaries.

a) Basis of Preparation and Period

These Consolidated Financial Statements from Enjoy S.A. and

Subsidiaries include the Consolidated Statement Of Financial

Position at 31 December 2016 and 2015, Income Statement And

Statement Of Comprehensive Consolidated Income for the years

ended December 31, 2016 and 2015, Consolidated Statement Of

Changes In Equity and Consolidated Statement Of Cash Flows for

the years ended December 31, 2016 and 2015.

The consolidated financial statements have been prepared in

accordance with International Financial Reporting Standards as

issued by the International Accounting Standards Board (“IASB”).

The consolidated financial statements at December 31, 2015 were

originally prepared under standards and instructions issued by

the Chilean Superintendency of Securities and Insurance (SVS),

considering Official Circular 856 of October 17, 2014, which

instructed audited entities to directly record in equity any changes

in deferred tax assets and liabilities arising as a direct result of

the increase in the first category tax rate introduced in Chile by

Law 20.780. This instruction differs from IFRS stipulations, which

require that such effect should be recorded in profit and loss for

the year.

 

This year the Company readopted IFRS, applying these standards

as if they had never stopped applying them, according to the

option set forth in paragraph 4A of IFRS 1 “First-time adoption

of IFRS”, without such meaning that any adjustments had to be

made to the consolidated financial statements at December 31,

2015, as originally issued, which are presented for purposes of

comparison with these consolidated financial statements.

These Consolidated Financial Statements have been prepared

under the criterion of historical cost, except for some items that

are recorded at fair value, such as; options, derivatives, liabilities

due to customer loyalty, among others.

In preparing the consolidated financial statements, certain

accounting estimates have been made by company management

in order to quantify some of the assets, liabilities, revenues,

expenses and commitments recorded in them. Note 4 discloses

the most important estimates used by the company. Although

these judgments and estimates have been based on the best

information available on the issuance date of these consolidated

financial statements, future events may occur that would require a

change to these judgments and estimates in subsequent periods.

This change would be made prospectively, recognizing the effects

this change of judgments and estimates in the corresponding

future consolidated financial statements.

Figures in the accompanying consolidated financial statements

are expressed in thousands of Chilean pesos. All companies

except for the following use the Chilean peso as their functional

currency: Yojne S.A. and Cela S.A. whose functional currency is

Argentinian pesos, the company Latino Usluge d.d.o., whose

functional currency is the Croatian Kunas, the company Enjoy

Caribe S.p.A., a Colombian branch, whose functional currency in

Colombian Pesos and the companies Andes Entretención Ltda.,

and Baluma S.A. whose functional currency is in US Dollars, as

explained in Note 2, d, number 1.

b) Basis of Consolidation

The consolidated financial statements of Enjoy S.A. and its

subsidiaries include the following basis of consolidation:

b.1) Subsidiaries

Subsidiaries are all the entities over which Enjoy S.A. has control.

Per IFRS 10, an investor has control over an investee when it has

power over the investee, when the investor is exposed or has

rights to variable returns from its involvements with the investee,

and when the investor has the ability to use its power to affect

its returns. All three of these criteria must be met for an investor

to have control over an investee. The existence and effects of

the potential voting rights that are presently exercisable are

considered when assessing whether Enjoy controls another entity.

Subsidiaries are consolidated from the date on which control is

transferred to Enjoy S.A. and cease to be consolidated from the

date that control is lost. The acquisition method of accounting

was used to account for the acquisition of the subsidiaries.

Acquisitions of businesses are accounted for using the acquisition

method. The consideration transferred in a business combination

is measured at fair value, which is calculated as the sum of the

acquisition-date fair values of the assets transferred by the Group,

the liabilities incurred by the Group to the former owners of the

acquiree and the equity interests issued by the Group in exchange

for control of the acquiree. Acquisition-related costs are generally

recognized in profit or loss as incurred.

At the acquisition date, the identifiable assets acquired and

liabilities assumed are recognized at their fair value, except the

following:

• Deferred tax assets or liabilities, and assets or liabilities related

to employee benefit arrangements are recognized and measured

in accordance with IAS 12 Income Taxes and IAS 19 respectively;

• Liabilities or equity instruments related share-based payment

arrangements of the acquiree or share-based payment

arrangements of the Group entered into or to replace share-

based payment arrangements of the acquiree are measured in

accordance with IFRS 2 at the acquisition date, and

• Assets (or disposal groups) that are classified as held for sale

in accordance with IFRS 5 Non-current Assets Held for Sale and

Discontinued Operations are measured in accordance with that

Standard.

Goodwill is measured as the excess of the sum of the consideration

transferred, the amount of any non-controlling interests in the

acquiree, and the fair value of the acquirer`s previously held equity

interest in the acquiree (if any) over the net of the acquisition-

date amounts of the identifiable assets acquired and the liabilities

assumed. If, after reassessment, the net of the acquisition-date

amounts of the identifiable assets acquired and liabilities assumed

exceeds the sum of the consideration transferred, the amount of

any non-controlling interests in the acquiree and the fair value

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of the acquirer`s previously held interest in the acquiree (if any),

the excess is recognized immediately in profit or loss as a bargain

purchase gain.

Non-controlling interests that are present ownership interests and

entitle their holders to a proportionate share of the entity`s net

assets in the event of liquidation may be initially measured either

at fair value or at the non-controlling interests proportionate share

of the recognized amounts of the acquiree` s identifiable net

assets. The choice of measurement basis is made on a transaction-

by-transaction basis. Other types of non-controlling interests are

measured at fair value or, when applicable, on the basis specified

in another IFRS.

When the consideration transferred by the Group in a business

combination includes assets or liabilities resulting from a contingent

consideration arrangement, the contingent consideration is

measured at its acquisition-date fair value and included as part of

the consideration transferred in a business combination. Changes

in the fair value of the contingent consideration that qualify as

measurement period adjustments are adjusted retrospectively,

with corresponding adjustments against goodwill. Measurement

period adjustments are adjustments that arise from additional

information obtained during the “measurement period” (which

cannot exceed one year from the acquisition date) about facts

and circumstances that existed at acquisition date.

The financial statements of the consolidated companies have the

same annual reporting dates as the individual financial statements

of the parent company Enjoy S.A., and were prepared applying the

same accounting policies.Consolidated entities with an ownership

interest of less than 50%

Although Enjoy S.A., directly and indirectly, holds a 45% ownership

in the company Baluma S.A., it is considered a subsidiary since

Enjoy S.A. exercises control over the entity through contracts or

agreements with shareholders, which give the power to nominate

5 of 8 directors of Baluma S.A., to designate the Chairman of the

board, the right to appoint, dismiss or reassign key personnel with

the capacity to conduct relevant activities and the right to direct

the relevant activities. As a result of these facts, while having less

than 50% ownership, Enjoy S.A. exercises control over Baluma

S.A.

Non-consolidated entities with an ownership interest of more

than 50%

Although Enjoy S.A., directly and indirectly, holds a 53% ownership

in the company Cela S.A., it does not exercise control over this

entity, due to the fact that Enjoy S.A. holds less than 50% of voting

rights in the entity (see Note 17).

b.2) Transactions with Non-Controlling Interests

Non-controlling interests are a portion of profits or losses and net

assets in the subsidiaries that are not 100% owned by Enjoy S.A.

Non-controlling interests related to the amount attributable to the

non-controlling interest is presented in the income statement, but

are included in the equity presented in the consolidated financial

statement, separated from the parent company’s equity.

An exception to this treatment of non-controlling interest is

made for Baluma S.A., as the owner of 55% shares of Baluma S.A.

has a put option with Enjoy S.A. for 55% of the shares held in

the company. Management has determined that it does not have

current access to the returns associated with the shares subject

to the put option. An accounting policy choice was made by

Management to subsequently derecognize the non-controlling

interest as a result of the lack of such current access and record any

difference generated at each period-end between the estimated

amount that would have had to have been paid to exercise the

put option at that point in time and the non-controlling interest

as calculated in accordance with the previous paragraph in “other

reserves” in Equity Attributable to the Owners of the Company. In

order to effect this accounting policy choice, the following steps

are followed at each period-end with respect to the 55% of shares

subject to the put option;

1. The share of net income attributable to the non-controlling

interest is recognized in the allocation made on the face of the

income statement;

2. The non-controlling interest is calculated in accordance with

the first paragraph above.

3. The non-controlling interest is 2) is derecognized.

4. The obligation for the put is recorded as a financial liability in

accordance with IAS 39 (see footnote to table in Note 27 C).

5. The difference between 3) and 4) is recorded against Other

Reserves at each period-end.

b.3) Associates

Associates are entities over which Enjoy S.A. holds between

20% and 50% of the voting rights, over which it has significant

influence, but which it does not control. Investments in associates

or joint ventures are accounted for using the equity method

of accounting and are initially recognized at fair value. The

investment of Enjoy S.A. in associates, includes goodwill identified

on acquisition, net of any accumulated impairment loss. The

share of Enjoy S.A. from post-acquisition profits or losses of its

associates or joint ventures is recognized in the income statement

and its interest in post-acquisition equity movements that are

not P&L related, are recognized in the corresponding equity

reserves (and/or are shown, as applicable, in the statement of

other comprehensive income). When the losses of an associate

equal or exceed the interest in the associate, including any other

unsecured receivables, Enjoy does not recognize further losses,

unless it has to incur obligations or make payments on behalf of

the associate. Unrealized profits of transactions between Enjoy

S.A. and its associates are derecognized based on the extent of

Enjoy’s interest in these associates. Unrealized losses are also

derecognized, unless the transaction provides evidence of an

impairment of the asset transferred.

b.4) Joint Ventures

Joint Control entities are those whereby Enjoy S.A. shares

control of the company, thanks to an arrangement with other

shareholders in accordance with IFRS 11. The joint arrangement

treatment depends on the type of joint arrangement and requires

determining rights and obligations. Enjoy S.A. does the accounting

for the Argentinean joint venture company Cela S.A. under the

equity method.

c) Financial Information by Segments

The information by segments is consistently presented in the

internal reports provided by the Management who makes

decisions over the assigning of resources and the assessing of the

performance of operating segments. The company has defined its

operating segments based on the development of its businesses

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through its subsidiaries, identifying its operating segments as Operations and Real Estate Investment. Entity-wide disclosure is also

provided.

This Financial Information by Segments is disclosed in Note No. 7.

d) Transactions in Foreign Currency

d.1) Functional and Presentation Currency

Items included in the consolidated financial statements of the company are measured using the currency of the primary economic

environment in which the entity operates (functional currency). The financial statements of Enjoy S.A. are presented in Chilean pesos,

which is the company’s functional currency. The presentation currency of the company and all its subsidiaries, including foreign companies,

is the Chilean peso.

Functional and Presentation Currency:

Country Functional Currency Presentation Currency

Chile Chilean peso (ThCh$) Chilean peso (ThCh$)

Argentina Argentinean pesos (ARS) Chilean peso (ThCh$)

Uruguay American dollar (USD) Chilean peso (ThCh$)

Croacia Kuna (HRK) Chilean peso (ThCh$)

Colombia Colombian Peso (COL) Chilean peso (ThCh$)

d.2) Transactions and Balances in Foreign Currency

Foreign currency transactions different from the functional

currency are translated into the functional currency using the

exchange rates prevailing at the transaction date. Foreign

exchange profits and losses resulting from the settlement of such

transactions and from the translation of monetary assets and

liabilities denominated in foreign currencies are recognized in the

income statement.

d.3) Basis of Translation

Assets and liabilities denominated in foreign currency or

readjustable units are measured in functional currency at the

current exchange rate, based on the following parities:

Currency / Date 12/31/2016 12/31/2015

American Dollar (USD) 669,47 710,16

Argentinean peso (ARS) 42,28 54,75

Euro (EUR) 705,60 774,61

Kuna (HRK) 93,38 101,05

Uruguayan peso (UYU) 22,86 23,77

Colombian Peso (COL) 0,22 0,22

Indexed Unit (CLF) 26.347,98 25.629,09

Real Brasileño (BRL) 205,82 178,31

d.4) Group Entities

Income statements and financial position of all entities in Enjoy S.A.,

that have a functional currency different from the presentation

currency, are translated into the presentation currency as follows:

i. The assets, liabilities, and equity are translated at the

exchange rates prevailing at the end of the reporting period.

ii. The income and expenses for each income statement

account are translated at the average monthly exchange

rates (unless this average is not a reasonable approximation

of the cumulative effect of the existing exchange rates at the

transaction dates, in which case income and expenses are

translated using the exchange rate at the transaction date),

and

iii. All the resulting exchange differences are recognized

as a separate component of net equity, in the item Other

Reserves.

In the consolidation process, exchange rate differences arise from

the translation to presentation currency of an investment in foreign

entities (or domestic entities with a functional currency other than

the one used by the parent company). When the investment is

sold or disposed of (all or in part), such translation differences are

recognized in the income statement as part of the profit or loss.

Goodwill and fair value adjustments of assets and liabilities arising

from the acquisition of foreign entities (or entity with a functional

currency different than the one used by the parent company)

are treated as assets and liabilities of the foreign entity and are

translated at the closing exchange rate, or as appropriate.

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e) Property, Plant, and Equipment

Property, plant, and equipment assets are measured at acquisition

cost, less accumulated depreciation and less any potential

impairment losses, in accordance with the IAS 16 and IAS 36,

respectively.

Interest and other financial expenses incurred and directly

attributable to the acquisition or construction of the qualifying

assets are capitalized in accordance with the IAS 23.

Expansion, modernization and enhancement costs representing

an increase in productivity, capacity or efficiency, or an increase

in the useful life, in property, plant and equipment are capitalized.

All repair and maintenance costs are charged to the income

statement during the reporting period in which they are incurred.

There are no provisions for dismantling, removal, or restoration of

property, plant, or equipment.

Implementation works include, but are not limited to, the following

expenses only during the construction period:

i. Financial expenses related to external funding and specific

expenses directly attributable to the construction.

ii. Directly related staff expenses and other operating expenses

attributable to the construction.

iii. Works in progress are transferred to property, plant, and

equipment once the test period has finished and the asset is

available for use, which is when depreciation begins.

Depreciation of Property, Plant, and Equipment

The depreciation of property, plant, and equipment is measured

on a straight-line basis, by calculating their cost less the residual

value over its economic useful life.

The residual value and the useful life of an asset is reviewed

and adjusted, if necessary, at each the closing of the financial

statements, so that its remaining useful life is in keeping with the

estimated use of the asset.

When the value of an asset is higher than the estimated recoverable

amount, its value is immediately reduced to its recoverable

amount, by recognizing impairment losses.

Gain/ losses for sales of property, plant and equipment, are

measured through the difference between proceeds and the

carrying amount and recognized in the income statement under

other gains (losses).

The company depreciates property, plant, and equipment assets

from the moment an asset is available for use, distributing the

asset costs on a straight-line basis over the years of its estimated

useful life. Land is not depreciated.

The estimated useful life, in years, is summarized as follows:

Asset classesUseful life or

maximum rate

Buildings 50 - 80 years

Premises 10 - 20 years

Fixtures and fittings 10 years

Machinery and Equipment 6 – 9 years

Slot Machines 3 - 8 years

Information Technology Equipment 3 – 6 years

Motor vehicles 7 years

Other property, plant and equipment 3 – 7 years

During the period, and principally at the end of each reporting

period, the Company’s management evaluates whether there is

any indication that an asset of property, plant and equipment

has been impaired. If any such indication exists, the Company’s

management estimates the recoverable amount of that asset

to determine the amount of the impairment loss. In the case of

identifiable assets that do not generate cash flows independently,

the Company’s management estimates the recoverable amount of

the Cash Generating Unit (CGU) to which the asset belongs, which

is understood to be the smallest identifiable group of assets that

generates independent cash inflows.

Recoverable amount is the higher of fair value less costs of

disposal and value in use, which is defined as the present value

of the estimated future cash flows. In order to calculate the

recoverable amount of Property, plant, and equipment, the

Company uses value-in-use criteria in all cases, except by CGU

Chiloe. To estimate value in use, the Company prepares future

pre-tax cash flow projections based on the most recent budgets

available. Future cash flows are discounted to calculate their

present value at a pre-tax rate that covers the cost of capital.

If the recoverable amount of the CGU is estimated to be less

than its carrying amount, an impairment loss is recognized in the

income statement.

Impairment losses recognized for an asset in prior periods are

reversed when there are indications that the impairment loss no

longer exists or may have decreased, thus increasing the asset’s

carrying amount with a credit to earnings. The increase in the

asset’s carrying amount shall not exceed that carrying amount

that would have been determined had no impairment loss been

recognized for the asset.

f) Intangible Assets other than Goodwill

Intangible assets are non-monetary assets with no physical

substance which may be individually identified, whether because

they are separable or because they arise from a legal or contractual

right. Assets whose cost can be reliably measured and over which

Enjoy S.A. expects future economic benefits are recognized in

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the balance sheet, in accordance with IAS 38. To account for

intangible assets that have an indefinite useful life, the company

considers that they should keep their value over time, therefore

they are not subject to amortization; however, they are annually

tested for impairment. An intangible asset with a finite useful life

is reviewed for impairment indicators, and if indicator exist, the

intangible is tested for impairment.

i. Casino Operating Permits

The operating permits for casinos that have made single

payments in conformity with the municipal concession contract

are in the item Intangible assets, as well as the licenses to operate

casinos purchased as a business combination recognized at their

acquisition cost less accumulated amortization and impairment

loss, if any. The casino operating permit has a finite useful life and

is amortized on a straight-line basis over its estimated useful life.

The estimated useful life is of a maximum period of 15 years and/

or during the length of the concession period and its amortization

is recognized in the income statement in Cost of Sales, except if

by legal modifications such permits are extended or postponed.

ii. Other Intangibles required for Operating Permits

Intangible Assets presents the rights to provide consulting services

for casino operations acquired through a business combination

and other costs necessary to obtain operating permits for casino

operations. These are recognized under acquisition costs less

accumulated amortization and less any accumulated impairment

loss.

Other intangibles required to obtain a permit to operate casinos

have a finite useful life and are amortized on a straight-line basis

over their estimated useful life. The estimated useful life is for a

maximum period of 15 years and/or for the length of the operating

permit and its amortization is recorded in the income statement

in Cost of Sales.

iii. Software

Software licenses are in the item Intangible Assets and are

measured at acquisition cost less accumulated amortization and

accumulated impairment loss.

Software licenses have a finite useful life and are amortized on a

straight-line basis over their estimated useful lives. The estimated

useful life is 3 to 5 years and its amortization is recorded in the

income statement in the item Cost of Sales.

g) Goodwill

Goodwill represents the excess of acquisition price over fair value

of the interest held by Enjoy S.A in the net identifiable assets,

obligations, and contingent liabilities of the acquired subsidiary at

the date of acquisition. Goodwill is not amortized but it is annually

tested for impairment and is recorded at cost less accumulated

impairment. Goodwill is allocated to the cash generating units

(CGU) to test their impairment. Allocation is made to the CGUs

expected to benefit from this goodwill acquired in the business

combination.

The cash generating units, defined by the company to determine

potential impairment loss in accordance with IAS 36, paragraphs

68 and 69 are as follows: Proyecto Integral Coquimbo, Proyecto

Integral Mendoza, Proyecto Integral Rinconada in Los Andes and

Casino de Colchagua. Each Proyecto Integral includes the Casino

operation, Hotel and Food & Drinks.

Negative goodwill arising from the advantageous acquisition of

an investment or business combination is directly recognized in

the income statement as earnings.

h) Financing Costs

Interest expenses are recognized in the income statement, except

for costs incurred in the construction of any qualifying asset,

which are capitalized during the period required to complete and

prepare an asset for its intended use in accordance with IAS 23.

i) Impairment of Intangible Assets

Intangible assets can have finite or indefinite useful lives.

Intangibles assets with an indefinite useful life are not amortized,

but are annually tested for impairment either individually or at the

cash generating unit level (“CGU”).

Intangible assets with finite lives are amortized over their useful

lives and their impairment is assessed every time indicators

exist that the intangible asset might be impaired. The period of

amortization and method of amortization of an intangible asset

with a finite useful life are reviewed at least at each year-end.

Expected changes in the useful life or the expected pattern of

consumption of the future economic benefits included in the

asset are accounted for by changing the period or method

of amortization, as applicable, and treated as changes in the

accounting estimates. The amortization expense of intangible

assets with finite useful lives is recognized in the statement of

income as expenses consistent with the function of the intangible

asset. An impairment loss is recognized for the excess carrying

amount of the asset over its recoverable amount. The recoverable

amount is the higher of the asset’s fair value less costs to sell or

value in use. To assess impairment loss, assets are grouped at the

lowest level in which there are separately identifiable cash flows

(cash generating units). Non-financial assets that have previously

suffered impairment are annually reviewed for possible reversal of

impairment loss at the end of each reporting period.

j) Financial Assets

j.1) Classification and Presentation

The company classifies its financial assets in the following

categories: at fair value with changes in income statement and

amortized cost. The classification depends on the purpose for

which the financial assets were acquired. Management determines

the classification of its financial assets on initial recognition.

j.2) Financial assets carried at fair value with changes in income

statement

This item includes other financial assets, non-current, measured

at fair value through profit or loss, recognized in the income

statement. In determining the fair value for assessing the financial

assets that are valued with changes in fair value, management

conducts studies of independent third parties that consider

assumptions such as the risk-free rate, the underlying market

value of the asset and the EBITDA volatility.

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The fair value of instruments actively listed in a formal market,

is measured by the quoted price of the instruments on the same

date as the end of the reporting period of the financial statements.

j.3) Financial assets carried at amortized cost

These amounts include loans and receivables that are non-

derivative instruments with fixed or determinable payments, not

quoted in an active market. They are included in current assets,

trade debtors and other current receivables.

Trade and other receivables include amounts due from sales

(mainly cash sales), except for sales related to Hotel, Food &

Beverages and events that can be either cash or credit sales.

For this reason the Company manages credit risk exposure by

permanently reviewing and assessing the customer’s payment

capacity, based on the information from different alternative

sources.

k) Inventories

Inventories are measured at the lower value between the

acquisition price or production cost and the net realizable value.

The net realizable value is the estimated selling price during the

normal course of business, less estimated costs necessary to

complete production and carry out the sale.

The valuation method for inventories is the weighted average

cost.

The cost of inventory includes all acquisition costs, conversion

costs and other costs incurred to define the current location and

condition of inventories.

l) Commercial Debtors and Other Trade Receivables

Commercial debtors and other trade receivables, are initially

recognized at fair value and subsequently measured at amortized

cost, based on the effective interest rate method, less the provision

for impairment loss, if any.

Impairment loss of trade receivables is determined, when there is

objective evidence that the company will not be able to collect all

amounts due according to the original terms of the receivables.

The company estimates bad debts based on an objective review

of all the amounts due at the end of each reporting period.

Impairment related to credits losses, are recognized in the income

statement under administrative expenses.

The existence of significant financial difficulties experienced by the

debtor, the probability that the debtor will undergo bankruptcy

or financial restructuring and the lack of or default on payments

are considered as indicators of impairment for receivables. The

impairment amount is calculated as the difference between the

asset’s carrying amount and the present value of the estimated

future cash flows, discounted at the original effective interest rate.

The carrying amount is reduced and the loss is recognized in the

income statement in the item Administrative Expenses. When a

receivable is written off, it is recognized against the allowance for

doubtful accounts.

m) Cash and Cash Equivalents

Cash and cash equivalents, recognized in the financial statements,

comprise cash on hand, checking accounts, time deposits, fixed-

rate investment funds, Central Bank instruments with low risk and

original maturities of three months or less.

Bank overdrafts are shown in the item Current Financial Liabilities

on the classified statement of financial position.

n) Other assets, current and non-current

These assets are prepaid disbursements whose benefit is expected

in a year or more. It also includes Tax debit VAT and Other assets,

net of impairment.

o) Financial Liabilities

i. Classification as debt or equity

The debt and equity instruments are classified either as financial

liabilities or as equity, according to the substance of the

contractual agreement.

ii. Financial liabilities

Financial liabilities are classified either as financial liabilities at “fair

value through the profit and loss” or as “other financial liabilities “.

a) Financial liabilities at fair value through profit and loss

Financial liabilities are classified at fair value through profit and

loss, when they are held for trading or are designated at fair value

through profit and loss.

b) Other financial liabilities

Other financial liabilities, including loans, are valued initially by the

amount of cash received, net of transaction costs. Other financial

liabilities are subsequently valued at amortized cost using the

effective interest rate method, recognizing interest expenses

based on the effective rate.

The effective interest rate method is the calculation of a financial

liability’s amortized cost and the expenditure throughout the

relevant period. The effective interest rate is the rate that exactly

discounts the estimated future cash payments (including all

commissions and points paid or received that are an integral part

of the effective interest rate, transaction costs and other premiums

or discounts) throughout the expected life of the financial liability

(or a shorter period when appropriate) from the net amount at the

initial recognition.

p) Accounts Payable

This item primarily contains balances payable to suppliers, which

are subsequently valued at amortized cost using the effective

interest rate.

q) Other Financial Liabilities

Other financial liabilities include loans owed that bear

interest, leasing liabilities and other financial liabilities, which

are measured at amortized cost, using the effective interest

method. Amortized cost is calculated taking into account

any premium or deduction of the acquisition and include the

transaction costs that are a comprehensive part of the effective

interest rate. The accretion of the present value to the maturity

value is recognized in the Income Statement over the life of the

debt, in accordance with the effective interest rate. Financial

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obligations are presented as non-current liabilities when their

maturity date is more than 12 months.

r) Equity derivatives

Derivative instruments are initially recognized at fair value in

the contract start date and are later measured at fair value

through the income account, except if they are under a specific

hedge accounting treatment. The method for the recognizing

gain or loss resulting from each valuation depends on whether

the derivative is designated as a hedging instrument or not, and

where appropriate, the nature of the inherent risk in the hedged

item. Enjoy designates derivatives as cash flow hedging of assets

and liabilities recognized in the classified statement of financial

position. The effective portion of changes in the fair value of

derivatives designated and qualified as cash flow hedges is

recognized in net equity through other comprehensive income.

The profit or loss relating to the ineffective portion is recognized

immediately in Other profits (losses) in income statements. At the

closing of these financial statements, the Company presents swap

and options contracts, as explained in Note 23. The company

records purchase options (call options) in the item Other financial

assets, non-current (see note 14). Furthermore, there is a sell

option (put option), which is recorded in the item Accounts

payable to related entities, non-current (see note No. 11).

s) Issued Share Capital

Subscribed and fully paid common shares represent the issued

share capital. Additionally, costs directly attributable to the issue

of new shares are recorded in equity.

t) Current Income Tax and Deferred Income Tax

Enjoy S.A. and its Chilean subsidiaries determine the taxable

income and calculate their income tax according to the existing

legislation. Its subsidiaries abroad do so under the rules of their

respective countries. At 31 December 2016 and 2015, deferred

taxes arising from temporary differences and other events

creating differences between the accounting and tax basis of

assets and liabilities are recorded according to the rules set out

in IAS 12 “Income Taxes”. Assets and liabilities resulting from

deferred taxes are classified as non-current.

When calculating the amount of current and deferred taxes, the

Company considered the impact of any uncertain tax positions

and whether any taxes and additional interest might be owed.

This evaluation depends on estimates and suppositions and may

involve a series of judgments about future events. New information

may arise that leads the Company to change its judgment about

the suitability of the current tax liabilities; any such changes in the

tax liabilities will have an impact on the tax expense for the period

in which it is being calculated.

u) Employee Benefits

The company records short-term benefits, such as wages,

bonuses, vacations and other items, on an accrued basis and

includes benefits arising from an obligation of the collective work

agreements, according to the IAS 19. The company does not have

defined benefit policies or long-term contractual obligations with

its employees.

v) Provisions

Provisions are recognized in the balance sheet when:

a. The company has a current binding present obligation

(either legal or implicit), due to a past event,

b. An outflow of resources is likely, requiring economic benefit

to settle the obligation,

c. A reliable estimate can be made for the obligation amount.

The provisions are measured at the current value of expenditures

required to settle the obligation, using the discount rate that

reflects the evaluations of the present market value of the money

and the specific risks of the obligation.

w) Revenue Recognition

Revenue is recognized under the accrual method, i.e., when

there is flow of goods and services, regardless of the collection

thereof, when these are reliably quantifiable, and it is likely that

any future economic benefits relating to the transaction will flow

to the company. Revenue is measured at the fair value of the

compensation received or receivable for the sale of goods and

rendering of services during the normal course of the business of

the company and its subsidiaries. Revenue arising from ordinary

activities are presented net of tax over added value, returns,

rebates, discounts and after writing off the sales between the

company and its subsidiaries and vice versa.

Revenue arising from ordinary activities is classified as follows:

i. Sale of Goods

The company recognizes as income from sales the sale of

products relating to food, beverages, and stores. Stock sales are

recognized when risks and rewards related to the ownership of

the goods are substantially transferred; the revenue amount can

be reliably determined and is likely to be collected.

ii. Rendering of Services

The company recognizes as income from the rendering of

services, the gaming, and hotel revenue. Gaming revenues (win)

that increase the company’s revenue are presented net of prizes

paid and correspond to the gross sum from table games and slot

machines, in which such gross revenue is the difference between

the opening and closing value, considering the corresponding

additions or deductions.

Revenues from ordinary activities only include gross earnings from

the economic benefits received or receivable. Proceeds received

from third parties, such as sales tax, product or service tax or

added value tax, are not earnings from economic benefits for the

entity. Therefore, such earnings are not included in revenues from

ordinary operating activities.

iii. Customer loyalty program

The company has a customer loyalty program named “Enjoy

Club”, whose goal is to increase customer loyalty through the

services provided by Enjoy S.A., which award Enjoy Club points

that are exchangeable for products and services, within a certain

period. The current consolidated financial statements include

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deferred revenue, according to the estimate value set for earned

points pending to be used by that date, in accordance with the

provisions of IFRIC 13 “Customer Loyalty Programs”.

iv. Leasing

Leased goods, where the lessor holds a significant portion of

the risks and benefits of the leased property, are classified as

operating leases. Payments made under contracts of this nature

are charged in the item cost of sales in the income statement over

the leasing period.

Assets received in lease - where all the risks and significant

benefits of the leased property are transferred to the company -

are classified as finance leases, registered at the beginning of the

leasing period in the item Properties, plants and equipment and

the related debt is classified in the item Other financial liabilities

for the fair value amount of the leased property or the current

value of the minimum installments agreed upon, if lower. Financial

costs for interest are charged to the income statement over the

life of the contract. The depreciation of these assets is included in

the total depreciation of the item Property, Plants and Equipment

in the statement of classified financial position and is recorded in

item Cost of Sales in the income statement.

x) Earning (loss) per share

Under IAS 33, earnings per share are calculated by dividing the

net profit attributable to shareholders by the weighted average

number of ordinary outstanding shares during the respective

financial period.

y) Distribution of dividends

At the end of each financial year, the company creates a provision

for 30% of the year’s earnings, according to Law No. 18,046 as

minimum dividend, since the Law requires the distribution of at

least 30% of the financial earnings of the year, unless the Board of

Shareholders unanimously agrees otherwise.

The distribution of dividends among company shareholders is

recognized as a liability and its corresponding decrease in net

equity in the consolidated annual accounts of Enjoy S.A, in the

financial year where the dividends are approved by the company’s

board of shareholders.

z.1) Distributable net income

Distributable net income means the income attributable to holders

of equity in the Company, considered for the calculation of the

minimum mandatory and, if approved by the shareholders, the

distribution of additional dividends. This amount must be adjusted

for all the adjustments that the Company considers necessary to

perform to determine an income base to be distributed.

In this regard, the Company may deduct or add the relevant

changes in the fair value of assets and liabilities. Those fair values

shall be reintegrated to the calculation of the Distributable Net

Income in the year that such fluctuations in fair value are recorded.

Notwithstanding the foregoing, for the Company to determine the

net income to distribute, it must consider the deduction of debit

balances for the item Accumulated Losses in Assets.

The policy used to determine the distributable net income must be

applied consistently. In the event the Company justifiably requires

a change in the policy mentioned, this should be reported to the

Superintendency of Securities and Insurance as soon as the Board

makes this decision.

z) Deferred customer revenue

The company records its customer obligations in liabilities in the

item Other financial liabilities, current, when clients make deposits

for the contracted services.

NOTE 3 RISK MANAGEMENT POLICIES

Enjoy S.A. and subsidiaries are exposed to market risks and

financial risks inherent to their business. Enjoy S.A. seeks to

identify and manage these risks in the most appropriate manner

in order to minimize the potential adverse effects.

1. MARKET RISKS:

Market risks are risks related to variations in variables that affect

the company’s assets and liabilities, among which we can highlight:

a) Regulation

Any changes to the regulations established by the Superintendency

of Gambling Casinos, or contracts relating to the casino industry

or in the interpretation of these regulations or contracts by the

administrative or municipal authorities could affect the operation

of casinos and in particular, the company’s income. Regulatory

changes that may affect the industries in which the company

operates, such as laws restricting the consumption of certain

products - like changes in the tobacco law and alcohol law - could

affect the revenue of the company. The company is constantly

developing and updating new products, making it easier to adapt

its commercial and services offer to these changes and keep

offering comprehensive entertainment to its clients. Enjoy S.A.

has processes in place that ensure regulatory compliance. These

processes are managed by the Legal Services Management area,

and the Compliance and Corporate Governments Management.

Their implementation and effectiveness is regularly reviewed by

Internal Auditing.

a.1) Revocation of operating licenses for casinos

According to the provisions in the Gambling Casinos legislation,

the operation permit granted by the State to operate a casino

can be revoked by the Superintendency of Gambling Casinos

(hereinafter the “SCJ”), through a substantiated decision, any

time grounds that are set forth in the Law take shape, where

the operator would have to seriously breach its obligations

to use the license by strictly adhering to the Casinos Law, its

regulations and the instructions given by the authority. In the

event of a breach, the SCJ could initiate a procedure to revoke the

operation permit, which could end with a resolution of revocation,

susceptible to a claim and later appeal to the respective Court

of Appeals. Furthermore, municipal concession contracts for

gambling casinos, subject to municipal inspection until the

year 2017, also provide grounds for termination, cessation, and

expiration due to serious breaches of obligations established in

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them for the concessionaire, similar to those set forth in the new

casino law. Enjoy S.A., as proven by over 40 years of experience

in the entertainment industry, sets standards of comprehensive

regulatory compliance for regulatory risk to be mitigated as much

as possible. These compliance standards are designed according

to current regulations by the Legal Services Management,

Compliance, and Corporate Governments Managements and, in

turn, are reviewed in their implementation and effectiveness by

Internal Audit regularly.

a.2) Gambling Casinos Municipal licenses

On 11 August 2015, Law 20,856 was enacted, amending law

19.995 that extends the operation of municipal casinos until 31

December 2017. This means that certain tangible and intangible

assets of the company will extend their useful life according to

the new operation term of gambling casinos. At the same time, as

demonstrated since it began to be quoted on the stock exchange,

Enjoy has increased its participation in the operation of gambling

licenses, such as “Rinconada de los Andes” in Chile, and “Punta

del Este” in Uruguay, which has allowed it to diversify its portfolio

of gambling licenses and therefore its revenue. In addition, these

new licenses have allowed it to extend the average duration of

gambling licenses. There is a risk of not obtaining all or a part of

the existing municipal licenses, and also of not obtaining new ones

that will replace in part those that are not renewed. Regarding

the process for granting permits to operate gambling Casinos,

in the districts where currently municipal casinos operate, i.e.

Arica, Iquique, Coquimbo, Viña del Mar, Pucón, Puerto Varas and

Puerto Natales, on July 15, 2016 three of the current operators of

gambling casinos, among them Enjoy, submitted motions with the

Court of Appeals of Santiago denouncing as illegal and arbitrary

the Technical Bases, issued by the Superintendence of Gambling

Casinos (known as SCJ in Chile), for granting licenses for the

operation of gambling casinos in such districts. On November 2,

2016, the Court of Appeals handed down its ruling and, in general,

accepted the allegations that the Technical Bases contained some

illegal and arbitrary provisions. As a result of the rulings of the

Court of Appeals, the application process in all districts, where

the deadline for submitting technical and economic bids was

supposed to end on November 4, 2016, is now suspended, and

the SCJ has been required to amend the Technical Bases only as

regards the provisions that the Court of Appeals considered to

be illegal and arbitrary. Nevertheless, the SCJ on November 8,

2016 filed an appeal with the Supreme Court so that the latter

annulled the Court of Appeals rulings. The Supreme Court has not

yet reviewed the appeal.

b) Income Volatility

The volatility of the average revenue per slot machine and

average revenue per gaming table could affect the business, its

financial situation, and operating results. It is Enjoy S.A.’s policy to

keep high standards of quality in its facilities and services, as well

as innovative technological standards, in order keep its market

leader status, for which it has a specialized team for each area

that seeks excellence. The industry, when faced with recessionary

economic cycles and natural disasters, has shown negative

impacts on the average bet in the locations that have been most

affected by these cycles or disaster, however, by having a location

diversification policy for its business units, Enjoy S.A. has been

able to mitigate these effects. Furthermore, this risk is limited

due to a significant fragmentation of the revenue. The Law on

Tobacco Control N ° 20.660 that went into effect on March 1,

2013, increased the restrictions on consumption, cigarette sales,

and advertising in Chile. This new law forbids smoking in indoor

confined spaces that are publicly accessible or for commercial use.

This law influenced the average expenditure per visit, translating

into an income decrease for Chilean operations. To address the

impact of this law on the results, the company implemented open

terraces with slot machines in some casinos, on September 2013,

which enabled mitigating income impact.

b.1) Gaming Tables Casino Conrad in Punta del Este

Unlike the business model of Enjoy casinos in Chile, a higher

proportion of gaming revenue in Conrad comes from the gaming

tables and their VIP lounges. Consequently, there is a short-term

risk related to this type of operation. According to the provisions

of the gaming rules, the casino has a theoretical advantage, which

on a longer term means that this risk factor does not tend to affect

the company’s gaming revenues.

c) International Markets - Argentina, Brazil, Uruguay, and Colombia

Entry of the company into foreign markets could cause it to

face political, economic, and judicial risks as well as translation

differences related to operations in other countries. Currently,

Enjoy S.A. has operations in Argentina, Colombia, and Uruguay, as

well as a commercial office in Brazil, which allows it to capture and

keep customers of this market. Although these risks are inherent

to any international operation, Argentina has proved to be a

market with volatile conditions and in some cases, unfavorable

for business development. Thus, the revenue and assets of the

company ventures abroad may be affected by intervening events,

regulatory changes, deterioration in inflation and interest rates,

exchange rate fluctuations, changes in government policies,

expropriation, price and salary restrictions, and tax increases. On

the other hand, the economy and politics of Brazil and Uruguay

have proved to be stable over time.

d) Construction Project Risk

The hotel and casino projects developed by the company are

subject to the risks faced by all construction projects in terms of

facing higher values in raw material costs during the development

of the work and changes in the appearance of the project, requiring

a higher investment. However, the significant investments made

by Enjoy S.A. are completed, reducing the relevance of this risk.

2. FINANCIAL RISK

a) Risk Conditions in the financial market

a.1) Exchange rate risk

The foreign exchange hedging policy seeks to achieve a natural

hedge of its business flows through keeping debt in the functional

currencies of each operation and adapting significant obligations

or payment decisions to the Chilean peso currency. Therefore, in

cases where it is not possible or desirable to provide economic

hedging through its own business flows or debt, the company

contracts hedging derivative instruments which qualify under

International Accounting Standard No. 39 as cash flow hedges.

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As of 31 December 2016, the company has a cross-currency swap

on bonds of C and E series (see note No. 14).

a.2) Exchange rate risk for investments in functional currency in Argentinean pesos, dollars, and Colombian pesos.

The company has a jointly controlled investment in the company

Argentina Cela S.A, operator of Casino, hotel and food &

beverages in Argentina. This foreign investment is managed in

the country’s functional currency, that is, the Argentine peso. As

a result, Enjoy S.A. had to 31 December 2016 an exposure on its

balance sheet equivalent to ThCh$ 7.363.618 (ARS 174 million).

Significant fluctuations in the exchange rate of Argentinean peso

compared to the Chilean peso can affect the value of foreign net

investments, due to the currency translation adjustment recorded

in the item Other Equity Reserves of Enjoy S.A. Additionally,

Enjoy S.A has investments in Uruguay on behalf of the company

Baluma S.A, operating company of the casino, hotel, food and

beverage and tourism. This investment is handled in U.S. dollars.

As a result, Enjoy S.A. had to 31 December 2016 an exposure

on its balance sheet equivalent to ThCh$ 208.933.415 (USD 313

million). Lastly, Enjoy S.A. has investments in Colombia through

the company Enjoy Caribe S.p.A. - Colombia branch, operating

company of the Gaming casino, hotel and food & beverage.

This investment is managed in Colombian pesos. As a result,

Enjoy S.A. had at December 31, 2016 an exposure equivalent to

ThCh$ 786.982 balance (COL 3,529 million). Significant fluctuations

in the exchange rate of the dollar against the Chilean peso may

significantly affect the value of the net investment abroad, as a

result from the translation adjustment that is recorded in the item

Other Equity Reserves of Enjoy S.A.

a.3) Interest Rate Risk

Fluctuations in interest rates can have a significant impact on

company’s financial costs. Enjoy S.A. and its subsidiaries keep

short and long-term debt; the interest of these debts is expressed

at different rates: variables and fixed, expressed on a TAB base.

b) Credit Risks

Credit risk mostly arises from a counterparty’s failure to pay

an obligation and, therefore, depends on the ability to collect

outstanding accounts receivable and to enforce engaged

transactions. Enjoy S.A. implemented a credit and collection

division centralized in Chile that has defined credit sales policies

and conducts ongoing follow-up of the portfolio of receivables.

The most difficult cases are sent out to external debt collection

agencies. At present, the company does not have receivable

insurance contracts. Enjoy S.A.’s current credit policy sets out

a maximum 90-day repayment term. Likewise, most consumer

credit sales related to services (offer venue rentals or organize

events which include catering) require a 50% payment up-front.

However, there is still a small loan percentage provided for more

than 90 days, which is adjusted based on history.

At 31 December 2016, the composition of trade and other

receivables totaled ThCh$ 37.440.928 decreasing by ThCh$

475.272 from the end of 2015 reporting period. Allowance for

doubtful accounts at the end of the statements of financial

position totaled ThCh$ 3.443.797. Impairment of receivables is

determined through an individual analysis of each customer. This

analysis considers frequency of acquisition, payment behavior,

and financial analysis in order to determine the credit risk of each

customer.

The company’s prudent financial policy, in addition to its market

position and asset quality, allows it to have an investment grade

as well as BBB risk rating (Stable Trend) according to Compañía

Clasificadora de Riesgo Limitada and BBB (In observation),

according to Humphreys Ltda.

c) Liquidity Risk

Liquidity risk represents the risk of the company not being able to

meet its current obligations. Even though the company presented

at 31 December 2016 a negative working capital of ThCh$

182.910.611, the management believes that this situation does not

affect the ability to meet its financial obligations, as it has the

capacity to generate operational cash flows and available credit

lines, which are enough to meet its financial obligations. This

working capital decrease is due to the increase in current liabilities

resulting from recognizing in the short-term the obligation to

pay 55% of the Baluma S.A. shares, which amounts to ThCh$

125.726.466, due to the exercise of the Put option. The company

is evaluating various financing alternatives to fulfill this obligation.

As a product of the nature of the business, the company holds

a significant capacity to collect stable and daily cash flow on

a monthly basis, which allows it to manage and predict the

availability of liquidity in a reliable manner.

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December 31, 2016

ACurrent Asset Current Liability Liquidity ratio

ThCh$

94.934.192 277.844.803 0,34

December 31, 2015

ACurrent Asset Current Liability Liquidity ratio

ThCh$

84.971.259 133.244.436 0,64

Below is the liability maturity chart at 31 December 2016:

12/31/2016

Liabilities Current

Total Current

Non Current

Total Non- Current

Total liabilitiesUp to three

months

From three to twelve months

From one to three years

From three to five years

Over five years

ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$

Other financial liabilities 28.410.612 61.400.166 89.810.778 58.300.677 38.985.753 38.893.673 136.180.103 225.990.881

Trade payables and other payables

42.381.926 1.187.075 43.569.001 - - - - 43.569.001

Accounts payable to related parties, current

- 130.990.432 130.990.432 - - - - 130.990.432

Current tax liability, current - 1.615.802 1.615.802 - - - - 1.615.802

Current provisions for employee benefits

- 267.411 267.411 - - - - 267.411

Deferred tax liabilities - - - - - 49.436.319 49.436.319 49.436.319

Other current liabilities 11.591.379 - 11.591.379 - - - - 11.591.379

Total liabilities 82.383.917 195.460.886 277.844.803 58.300.677 38.985.753 88.329.992 185.616.422 463.461.225

The following table shows the maturity of financial liabilities with undiscounted maturities as of December 31, 2016:

12/31/2016

Liabilities CurrentTotal

Current

Non CurrentTotal Non-

CurrentTotal

liabilitiesUp to three

months

From three to twelve months

From one to three years

From three to five years

Over five years

ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$

Other financial liabilities 30.321.512 68.194.471 98.515.983 71.192.966 47.553.050 43.413.771 162.159.787 260.675.770

Total financial liabilities 30.321.512 68.194.471 98.515.983 71.192.966 47.553.050 43.413.771 162.159.787 260.675.770

The following table show a breakdown of future disbursements under contracts operating lease that are not reflected in the company’s

balance sheet:

Maturities

2017

Total 2017

2018 onwardsTotal 2018 onwards

TotalJanuary to March

April to December

2018 and 2019

2020 and 2021

2022 and more

ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$

Lease payment 1.814.946 5.444.839 7.259.785 8.034.538 8.034.538 15.321.103 31.390.179 38.649.964

Total 1.814.946 5.444.839 7.259.785 8.034.538 8.034.538 15.321.103 31.390.179 38.649.964

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3. SENSITIVITY OF VARIABLES

Company management determines the parameters used to

calculate sensitivity, based on the following:

· Industry growth variables for gambling revenue, using a

measurement parameter of 15%, which is the maximum variation

suffered by the industry in highly volatile periods, such as the crisis

caused by the tobacco law, are management´s most reasonably

considered estimation of the potential increase/decrease in

gaming income.

· Volatility of the banking system’s interest rates for financial

costs, where 2% is considered a critical variation up or down. The

sensitivity is based on the assumption that applicable TAB interest

rates will rise (fall) by not more than two percentage points.

· Volatility of the US dollar obtained from the Central Bank for

exchange rate exposure. Given this factor’s high volatility, the

Company considers variations of more than 6% (7% for Uruguay)

to be critical. The sensitivity is based on the assumption that

exchange rate will rise (fall) by not more than 6% (7% for Uruguay)

percentage points.

a) Gaming revenue

The company’s main component in revenues is Gaming revenue,

which accounted for 76.2% of the company’s total revenue. In

turn, the revenue of the group in USD (United States Dollars)

represents 30.8% of consolidated gaming revenue and 30.3% of

the total consolidated financial statements.

The following shows the impact of an increase or decrease in the

amounts of bets in the gambling floors of Chile and Uruguay on

consolidated revenues

Actual As of December 2016

Consolidated Chile Uruguay

ThCh$ ThCh$ ThCh$

Gaming income 208.536.277 143.790.508 64.291.562

Sensitivity As of December 2016

Consolidated Chile Uruguay

ThCh$ ThCh$ ThCh$

Gaming income 186.513.494 122.221.932 64.291.562

Variation -10,6% -15,0% 0,0%

Sensitivity As of December 2016

Consolidated Chile Uruguay

ThCh$ ThCh$ ThCh$

Gaming income 198.438.336 143.790.508 54.647.828

Variation -4,8% 0,0% -15,0%

b) Finance Costs

The company has fixed and variable loans. Variable rate loans

include composite rate loans with a fixed spread, variable, TAB in

Ch$, UF, of 90 and 180 day terms. The variable composite of such

loans, particularly the TAB rate, makes the finance costs sensitive

to changes from one period to another. Of the company’s total

finance costs, 21.5% were subject to such variations.

The following table discloses the impact of the increases and

decreases of the TAB rate on composite loans with this rate and

their repercussion on the company’s finance costs at 31 December

2016.

Current for the year ended Dec. 2016 ThCh$

Finance costs (3.636.602)

TAB - 2% ThCh$Current for the year

ended Dec. 2016 ThCh$

TAB + 2% ThCh$

(3.563.869) (3.636.602) (3.709.334)

c) Exchange Rate

The main flows and transactions of Enjoy S.A. and its subsidiaries

are conducted in local currency where the operations are located,

i.e., in Chilean pesos for the companies within Chile, Argentinean

pesos for companies in Argentina and Colombian peso for the

company in Colombia. The exception to the rule is Uruguay, since

revenues are in dollars and most of the costs, such as wages,

are in Uruguayan pesos. The company’s policy is to monitor its

exchange rate exposure and hedge this risk exposure accordingly.

The following table shows sensitivity to exchange rate fluctuations

of the position in US dollars, exposed in Chile and Uruguay:

c1) Chile:

As of December 2016

6% (+) 6% (-)

ThCh$ ThCh$ ThCh$

Asset in dollars (net) 863.326 918.186 973.046

c2) Uruguay

As of December 2016

Parity- 7% Parity + 7%

ThCh$ ThCh$ ThCh$

Asset in dollars (net) 14.393.070 15.476.419 16.559.769

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NOTE 4 MANAGEMENT ESTIMATES, JUDGMENTS, AND CRITERIA

a) USE OF ESTIMATES

In certain cases, assumptions and estimates are presented in

conformity with accounting principles and estimates. This implies

assessments that require professional judgment and estimates

based on events that, due to their nature, are uncertain and may

be subject to changes. The valuation method, subject to estimates

and assumptions, may change over time and considerably affect

equity, financial and income position.

The company applies the following estimates:

i) Trade Receivables

The company uses estimates to measure impairment of trade

receivables, based on improved information available on credit

quality and customer behavior. (See Note 10).

ii) Deferred Income Tax

The company measures the recoverability of deferred tax assets

based on estimates of future performance. This recoverability

ultimately depends on the company’s capacity to generate

taxable profit over the reporting period when the deferred tax

assets are deductible. The appropriate classification of the taxable

amounts depends on several factors, including the estimate at the

time and realization of the deferred tax assets and expected time

of tax settlement. Real collection flows and income tax payments

could differ from the company’s estimates, because of changes in

tax legislations or unexpected future transactions that may affect

tax balances. Deferred tax is measured by applying different tax

rates in force at the end of each reporting period.

iii) Provisions for litigation and other contingencies

The Company regularly evaluates the possibility of losses

from litigation and contingencies, based on estimates made

by management. No provision has been made for those cases

where management estimates that no resources will probably be

disbursed, economic benefits have been incorporated to settle

the obligation or when the amount cannot be reliably estimated.

iv) Business Combinations

Acquisitions of businesses are accounted for using the acquisition

method. The consideration transferred in a business combination

is measured at fair value, which shall be calculated as the sum

of the acquisition-date fair values of the assets transferred by

the acquirer, the liabilities incurred by the acquirer to the former

owners of the acquiree and the equity interests issued by the

acquirer. Acquisition- related costs are generally recognized in

profit or loss as incurred. See Note 2 B b) 1 for more information

regarding the accounting for a business combination.

v) Impairment

Measurement of asset impairment losses is based on the

recoverability of the estimated future cash flows of the cash-

generating unit or the asset being tested for impairment.

vi) Deferred Revenue from Customer Loyalty Programs

In order to determine the recognition of loyalty points earned

and awarded to customers who have subscribed to the loyalty

program, the estimate is based on different factors reflected in

an expected probability rate and related costs (client loyalty

program - see note 26).

vii) Property, Plant, Equipment, and Intangibles

The accounting treatment for property, plant, equipment and

intangibles involves estimating the useful life used to calculate

depreciation, amortization and relevant residual values. (See Note

2 e).

viii) Determination of Fair Value to measure Financial Assets

In order to determine the fair value of a financial asset measured

with changes in its fair value, the Company utilizes studies by

independent third parties that consider assumptions, such as the

determination of a risk-free rate and volatility of the underlying

asset of an option.

However, it is possible that potential future events will require the

modification of estimates over the next reporting periods and the

estimates may be modified.

Information about the valuation techniques and inputs used

in determining the fair value of various assets and liabilities are

disclosed in note 23.

NOTE 5 ACCOUNTING CHANGE

i) Accounting Changes

The Financial Statements as of December 31, 2016 did not include

changes in accounting policies, compared to December 31, 2015.

ii) Reclassification

In order to improve the comparability of the 2016 financial

statements, the Company has made certain reclassifications in the

consolidated financial statements at December 31, 2015.

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NOTE 6 NEW ACCOUNTING PRINCIPLES

Improvements and Amendments to the IFRS, and interpretations published during the reporting period are disclosed below.

a) New and revised IFRS effective in the current year

The following new and revised IFRS have been adopted in these financial statements:

New Standards Effective date

IFRS 14 Regulatory Deferral Account Annual periods beginning on or after January 1, 2016

Amendments to Standards Effective date

Accounting for Acquisitions of interests in Joint Operations (Amendments to IFRS 11)

Annual periods beginning on or after January 1, 2016

Clarification of Acceptable Methods of Depreciation and Amortization (Amendments to IAS 16 and IAS 38)

Annual periods beginning on or after January 1, 2016

Agriculture: Bearer Plants (amendments to IAS 16 and IAS 41) Annual periods beginning on or after January 1, 2016

Equity Method in Separate Financial Statements (Amendments to IAS 27) Annual periods beginning on or after January 1, 2016

Disclosure Initiative (Amendments to IAS 1) Annual periods beginning on or after January 1, 2016

Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10,IFRS 12 and IAS 28)

Annual periods beginning on or after January 1, 2016

Annual Improvements 2012-2014 Cycle Annual periods beginning on or after January 1, 2016

b) New and revised IFRS in issue but not yet effective:

New Standards Effective date

IFRS 9 Financial Instruments Annual periods beginning on or after January 1, 2018

IFRS 15 Revenue from Contracts with Customers Annual periods beginning on or after January 1, 2018

IFRS 16 Leases Annual periods beginning on or after January 1, 2019

Amendments to Standards Effective date

Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28)

Effective date deferred indefinitely

Recognition of Deferred Tax Assets for Unrealized Losses (Amendments to IAS 12)

Annual periods beginning on or after January 1, 2017

Disclosure Initiative (Amendments to IAS 7) Annual periods beginning on or after January 1, 2017

Clarifications to IFRS 15 “Revenue from Contracts with Customers” Annual periods beginning on or after January 1, 2018

Classification and Measurement of Share-based Payment Transactions (Amendments to IFRS 2)

Annual periods beginning on or after January 1, 2018

The company is assessing the impact of the application of the regulations previously mentioned.

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NOTE 7 SEGMENT REPORTING

The Company reports financial information by segments in

conformity with IFRS 8 “Operating Segments”. This standard

sets out segment reporting in financial statements, as well as

the disclosure of products and services, geographical areas and

key customers. An operating segment is defined as a component

of an entity for which separate financial information is available

and whose operating results are reviewed regularly by senior

management in order to make decisions about resources to be

allocated and to assess results.

a) Operating: include casino, hotel and restaurants operatings;

b) Real Estate Investment: represents real estate transactions,

include administration y lease.

The revelations are made based on the geographic area in which

the revenues are generated.

7.1.1) Operating and Investment segments + real estate

a) Information at 31 December 2016:

Consolidated Income Statement

12/31/2016

OperationInvestment

(+) Real EstateIntercompany eliminations

Total

ThCh$ ThCh$ ThCh$ ThCh$

Revenue 191.622.859 108.678.615 (26.737.140) 273.564.334

Cost of sales (167.170.933) (75.731.812) 26.737.140 (216.165.605)

Gross margin 24.451.926 32.946.803 - 57.398.729

Administration expenses (15.517.562) (13.909.397) - (29.426.959)

Other expenses by function (3.489.147) (2.026.968) - (5.516.115)

Other gains (losses) (589.707) (41.507.724) - (42.097.431)

Operating margin 4.855.510 (24.497.286) - (19.641.776)

Financial income 167.139 13.599 - 180.738

Financial costs (7.573.286) (9.325.233) - (16.898.519)

Share of profit (loss) of associates 385.572 504.205 - 889.777

Foreign exchange gain/loss (83.169) (1.479.080) - (1.562.249)

Indexation for designated assets/liabilities for inflation (239.750) (1.013.667) - (1.253.417)

Net Income before tax (2.487.984) (35.797.462) - (38.285.446)

Income tax expenses (405.698) 1.582.629 - 1.176.931

Net Income (2.893.682) (34.214.833) - (37.108.515)

Net Income attributable to non-controlling interests (544.854) (1.452.718) (1.013.191) (3.010.763)

Net Income attributable to owners of holding company (3.438.536) (35.667.551) (1.013.191) (40.119.278)

Assets / liabilities of the segment

12/31/2016

OperationInvestment

(+) Real EstateIntercompany eliminations

Total

ThCh$ ThCh$ ThCh$ ThCh$

Assets of the segment 207.131.582 799.883.790 (432.343.655) 574.671.717

Property, plant and equipment, net 23.377.960 317.141.751 567.772 341.087.483

Intangible assets other than goodwill 26.050.218 52.828.691 - 78.878.909

Others 157.703.404 429.913.348 (432.911.427) 154.705.325

Liabilities of the segment 205.724.710 471.135.347 (213.398.832) 463.461.225

Other current financial liabilities 2.851.769 87.071.422 (112.413) 89.810.778

Other non-current financial liabilities - 136.573.549 (393.446) 136.180.103

Others 202.872.941 247.490.376 (212.892.973) 237.470.344

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Cash flows 12/31/2016

OperationInvestment

(+) Real EstateIntercompany eliminations

Total

ThCh$ ThCh$ ThCh$ ThCh$

Cash flows derived from (used in) operating activities 12.464.251 26.945.932 111.461 39.521.644

Cash flows derived from (used in) investment activities (57.396.814) (31.368.895) 78.729.358 (10.036.351)

Cash flows derived from (used in) financing activities 53.698.330 5.384.668 (78.840.826) (19.757.828)

b) Information at 31 December 2015:

Consolidated Income Statement 12/31/2015

OperationInvestment

(+) Real EstateIntercompany eliminations

Total

ThCh$ ThCh$ ThCh$ ThCh$

Revenue 148.281.378 110.732.780 (25.776.361) 233.237.797

Cost of sales (131.613.906) (76.130.507) 25.776.361 (181.968.052)

Gross margin 16.667.472 34.602.273 - 51.269.745

Administration expenses (14.759.536) (12.202.088) - (26.961.624)

Other expenses by function - (858.574) - (858.574)

Other gains (losses) (642.706) 2.053.417 - 1.410.711

Operating margin 1.265.230 23.595.028 - 24.860.258

Financial income 652.907 74.404 - 727.311

Financial costs (5.905.738) (11.708.405) - (17.614.143)

Share of profit (loss) of associates 271.627 245.837 - 517.464

Foreign exchange gain/loss 1.732.127 4.441.490 - 6.173.617

Indexation for designated assets/liabilities for inflation (753.698) (1.709.298) - (2.462.996)

Net Income before tax (2.737.545) 14.939.056 - 12.201.511

Income tax expenses 1.118.482 (3.391.653) - (2.273.171)

Net Income (1.619.063) 11.547.403 - 9.928.340

Net Income attributable to non-controlling interests (428.913) (2.369.373) (1.130.454) (3.928.740)

Net Income attributable to owners of holding company (2.047.976) 9.178.030 (1.130.454) 5.999.600

Assets / liabilities of the segment 12/31/2015

OperationInvestment

(+) Real EstateIntercompany eliminations

Total

ThCh$ ThCh$ ThCh$ ThCh$

Assets of the segment 167.895.890 813.746.205 (348.005.024) 633.637.071

Property, plant and equipment, net 27.542.805 334.690.582 587.724 362.821.111

Intangible assets other than goodwill 29.541.039 59.117.569 - 88.658.608

Others 110.812.046 419.938.054 (348.592.748) 182.157.352

Liabilities of the segment 163.902.392 563.340.283 (253.708.575) 473.534.100

Other current financial liabilities 7.955.641 55.288.085 (112.630) 63.131.096

Other non-current financial liabilities - 152.985.193 (506.833) 152.478.360

Others 155.946.751 355.067.005 (253.089.112) 257.924.644

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Cash flows 12/31/2015

OperationInvestment

(+) Real EstateIntercompany eliminations

Total

ThCh$ ThCh$ ThCh$ ThCh$

Cash flows derived from (used in) operating activities 5.208.867 24.031.149 (1.626.864) 27.613.152

Cash flows derived from (used in) investment activities (4.574.009) (15.423.133) 20.539.010 541.868

Cash flows derived from (used in) financing activities 2.702.806 (151.229) (18.912.159) (16.360.582)

7.1.2) Additional information of sub-groups of cash flows:

a) Information at 31 December 2016:

Cash Flows - Subgroups of operation of: 12/31/2016

CasinoFood &

Beverages and HotelTotal

ThCh$ ThCh$ ThCh$

Cash flows derived from (used in) operating activities 29.686.432 139.691 29.826.123

Cash flows derived from (used in) investment activities (31.928.761) (5.817.403) (37.746.164)

Cash flows derived from (used in) financing activities 4.080.425 5.937.241 10.017.666

b) Information at 31 December 2015:

Cash Flows - Subgroups of operation of: 12/31/2015

CasinoFood &

Beverages and HotelTotal

ThCh$ ThCh$ ThCh$

Cash flows derived from (used in) operating activities (3.490.180) 15.826.930 12.336.750

Cash flows derived from (used in) investment activities 10.780.812 4.508.554 15.289.366

Cash flows derived from (used in) financing activities (261.369) (18.541.809) (18.803.178)

7.1.3) Additional information on subgroup accounts on income statement

a) Information at 31 December 2016:

Statement of income - subgroups of operation of: 12/31/2016

CasinoFood &

BeveragesHotel Total

ThCh$ ThCh$ ThCh$ ThCh$

Operating income 208.536.277 31.323.751 20.556.744 260.416.772

Financial costs (1.158.710) - (403.956) (1.562.666)

b) Information at 31 December 2015:

Statement of income - subgroups of operation of: 12/31/2015

CasinoFood &

BeveragesHotel Total

ThCh$ ThCh$ ThCh$ ThCh$

Operating income 172.598.655 30.089.599 17.837.352 220.525.606

Financial costs (2.334.379) - (1.244.132) (3.578.511)

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7.2) Geographic segments:

a) Information at 31 December 2016:

12/31/2016

National International Disposals Total

ThCh$ ThCh$ ThCh$ ThCh$

Revenues 191.687.242 83.622.734 (1.745.642) 273.564.334

Assets of the Segment 12-31-2016

National International Total

ThCh$ ThCh$ ThCh$

Assets of the Segment 287.956.860 286.714.857 574.671.717

Current assets 42.375.115 52.559.077 94.934.192

Non-current assets 212.199.234 233.911.197 446.110.431

Deferred tax assets 33.382.511 244.583 33.627.094

Cash flows 12/31/2016

National InternationalIntercompany eliminations

Total

ThCh$ ThCh$ ThCh$ ThCh$

Cash flows derived from (used in) operating activities 30.581.847 8.828.336 111.461 39.521.644

Cash flows derived from (used in) investment activities (73.155.096) (12.810.613) 75.929.358 (10.036.351)

Cash flows derived from (used in) financing activities 51.368.676 4.914.322 (76.040.826) (19.757.828)

b) Information at 31 December 2015:

12/31/2015

National International Disposals Total

ThCh$ ThCh$ ThCh$ ThCh$

Revenues 148.430.378 86.658.281 (1.850.862) 233.237.797

Assets of the Segment 12-31-2015

National International Total

ThCh$ ThCh$ ThCh$

Assets of the Segment 330.769.211 302.867.860 633.637.071

Current assets 36.170.564 48.800.695 84.971.259

Non-current assets 263.432.876 254.039.603 517.472.479

Deferred tax assets 31.165.771 27.562 31.193.333

Cash flows 12/31/2016

National InternationalIntercompany eliminations

Total

ThCh$ ThCh$ ThCh$ ThCh$

Cash flows derived from (used in) operating activities 21.845.889 7.394.127 (1.626.864) 27.613.152

Cash flows derived from (used in) investment activities (21.523.353) 1.526.211 20.539.010 541.868

Cash flows derived from (used in) financing activities 2.849.801 (298.224) (18.912.159) (16.360.582)

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7.3) Revenue by country:

a) Information at 31 December 2016:

12/31/2016

Chile Uruguay Colombia Total

ThCh$ ThCh$ ThCh$ ThCh$

Gaming 143.790.508 64.291.562 454.207 208.536.277

Non-Gaming 46.151.092 18.778.748 98.217 65.028.057

Total 189.941.600 83.070.310 552.424 273.564.334

b) Information at 31 December 2015:

12/31/2015

Chile Uruguay Total

ThCh$ ThCh$ ThCh$

Gaming 102.802.249 69.796.406 172.598.655

Non-Gaming 43.777.267 16.861.875 60.639.142

Total 146.579.516 86.658.281 233.237.797

There are no external customers who individually represent more than 10% of the total income from ordinary business activities for each

reporting period.

NOTE 8 CASH AND CASH EQUIVALENTS

The composition of cash and cash equivalents on the balance sheet is as follows:

Item 12/31/2016 12/31/2015

ThCh$ ThCh$

Cash 15.477.139 13.437.686

Balance in Banks 14.909.579 19.099.587

Term deposits 10.149.424 -

Short term investments 1.053.441 480.701

Total 41.589.583 33.017.974

Cash included cash, cash equivalents, time deposits, and other short-term investments with an original maturity of 90 days or less. Time

deposits and mutual funds mature in less than 90 days from the acquisition date and accrue interest.

The composition by cash currency and cash equivalent balance is as follows:

Currency 12/31/2016 12/31/2015

ThCh$ ThCh$

Pesos (CLP) 21.391.675 12.923.266

Dollar (USD) 19.255.643 18.309.843

Argentinean Pesos (ARS) 854.484 1.723.464

Kuna (HRK) 12 2.219

Euro (EUR) 17.506 29.585

Colombian peso (COL) 70.263 29.597

Total 41.589.583 33.017.974

At the end of the reporting periods, there are no significant cash and cash equivalent restrictions.

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NOTE 9 OTHER ASSETS, CURRENT AND NON-CURRENT

a) The breakdown of other non-current assets is as follows:

Conceptos 12/31/2016 12/31/2015

ThCh$ ThCh$

Prepaid expenses (i) 2.734.174 1.548.830

Other assets 66.420 98.115

Total 2.800.594 1.646.945

(i) Mainly includes contractual rights for insurances and anticipated leasing.

b) The breakdown of other assets, non-current, is as follows:

Conceptos 12/31/2016 12/31/2015

ThCh$ ThCh$

Prepaid expenses 291.642 506.467

Other assets - 24.421

Total 291.642 530.888

NOTE 10 TRADE AND OTHER RECEIVABLES, CURRENT

a) The composition of trade and other current receivables is as follows:

12/31/2016 12/31/2015

Current Current

Gross Value Allowance for

bad debtNet Value Gross Value

Allowance for bad debt

Net Value

ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$

Trade accounts receivable, undocumented (i)

13.484.818 (1.425.215) 12.059.603 12.113.547 (984.528) 11.129.019

Notes receivable, documented 31.051.408 (8.758.292) 22.293.116 29.719.548 (6.680.705) 23.038.843

General accounts receivable 3.088.209 - 3.088.209 3.748.338 - 3.748.338

Total 47.624.435 (10.183.507) 37.440.928 45.581.433 (7.665.233) 37.916.200

(i) It includes invoices and accounts receivable from Transbank (corresponds to the collection for the acceptance of bank debit and

credit cards at points of sale).

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b) The composition of trade receivables with uncollected, outstanding, and unimpaired balances, according to their issue date, is as follows:

Balances at 31 December 2016 are as follows:

from 0 to 30 daysfrom 31 to 60

daysfrom 61 to 90

daysfrom 91 to 120

daysfor more than

120 days12-31-2016

Item

ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$

Trade accounts receivable, undocumented

9.548.140 1.073.989 401.278 222.298 813.898 12.059.603

Trade accounts receivable, documented

13.182.231 1.739.006 705.215 1.120.900 5.545.764 22.293.116

General accounts receivable 2.736.966 351.243 - - - 3.088.209

Total 25.467.337 3.164.238 1.106.493 1.343.198 6.359.662 37.440.928

Balances at 31 December 2015, are as follows:

from 0 to 30 daysfrom 31 to 60

daysfrom 61 to 90

daysfrom 91 to 120

daysfor more than

120 days12-31-2015

Item

ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$

Trade accounts receivable, undocumented

8.010.063 711.086 343.732 212.054 1.852.084 11.129.019

Trade accounts receivable, documented

13.714.786 4.021.492 1.016.573 836.573 3.449.419 23.038.843

General accounts receivable 3.028.081 720.257 - - - 3.748.338

Total 24.752.930 5.452.835 1.360.305 1.048.627 5.301.503 37.916.200

c) Rollforward of the Allowance for Doubtful accounts:

Transactions12/31/2016 12/31/2015

ThCh$ ThCh$

Initial balance (7.665.233) (3.053.070)

Other increases (decreases) due to variation in Foreign currency 483.933 (509.728)

Reversal (impairment) of the reporting period (7.314.807) (5.827.841)

Write-offs of the reporting period 4.312.600 1.725.406

Closing balance (10.183.507) (7.665.233)

The company periodically assesses if there is impairment of trade and other receivables.

The criteria used to determine if there is objective evidence of

impairment loss are as follows:

- Portfolio Maturity

- Account Receivable

- Specific market signs, and

- Specific impairment events (default)

Once pre-legal and legal debt collection management has been

exhausted, assets are written off against the measured impairment.

The company only applies the impairment method and not the

direct write-off method for better control.

Historically renegotiations are not significant nor typical. The

policy is analyzed on a case-by-case basis based on risk, and,

if appropriate, the Company will move forward with legal

proceedings in order to settle the receivable.

At 31 December 2016, the number of renegotiated customers was

25 and their debt totaled ThCh$ 153.930. At 31 December 2015,

the number of renegotiated customers was 77 and their debt

totaled ThCh$ 261.170.

Impairment is conducted for each specific customer.

Maximum exposure to credit risk at the reporting period dates is

the carrying amount for each type of trade and other receivables.

When appropriate and as part of its credit analysis, Enjoy S.A. may

request a guarantee from its customers.

NOTE 11 BALANCES AND TRANSACTIONS WITH RELATED ENTITIES

Accounts receivables and payables at 31 December 2016 and

2015, respectively, are broken down in the following charts:

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a) Accounts receivable from related entities, current

Taxpayer ID Name of related Party Country of Origin Currency Type Nature of the relationship 12/31/2016 12/31/2015

ThCh$ ThCh$

79.964.280-8 Antonio Martinez y Cía. III Chile CLP Common shareholder - 51.927

99.598.660-4 Casino de Colchagua S.A. Chile CLP Affiliate 42.418 267.217

59.102.800-6 Limari Finances Inc. Panamá USD Common shareholder - 58.477

Foreigner Cela S.A. Argentina ARS Joint Venture 1.035.035 862.850

Foreigner Casino Grad D.D. Croacia HRK Affiliate 737.540 788.630

Total 1.814.993 2.029.101

Accounts receivable from related entities refer to current commercial operations in market conditions, agreed in pesos. Certain receivables

bear interest and have an indexation clause.

Transactions with related companies are charged immediately or upon 30 days. These operations abide by the provisions of Title XVI of

Law No. 18.046.

b) Accounts receivable from related entities, non-current

Taxpayer IDName of related Party

Country of Origin Currency TypeNature of the relationship

12/31/2016 12/31/2015

ThCh$ ThCh$

96.956.110-7Hotel Santa Cruz Plaza S.A.

Chile CLPCommon shareholder

637.139 637.139

Total 637.139 637.139

c) Accounts payable to associates, current:

Taxpayer IDName of related Party

Country of Origin Currency TypeNature of the relationship

12/31/2016 12/31/2015

ThCh$ ThCh$

Key executives (1) Chile CLP Key executives 746.645 889.337

Foreigner Cela S.A. Argentina ARS Joint Venture 2.182.531 3.049.057

ForeignerBaluma Holding S.A. (3)

EEUU USDCommon shareholder

126.755.462 1.091.539

99.598.660-4Casino de Colchagua S.A.

Chile CLP Affiliate 1.305.794 1.100.593

78.422.870 -3Inv. e Inmobiliaria Almonacid Ltda. (2)

Chile CLP Shareholder - 852.423

88.403.100-1Inv. Cumbres Ltda. (2)

Chile CLP Shareholder - 175.308

Total 130.990.432 7.158.257

The accounts payable relate to trade under market conditions agreed in pesos. They bear interest and have an indexation clause.

1. At December 31, 2016 and 2015, it includes a provision for performance bonus associated with the compensation plan for the

executive officers based on meeting a series of indicators and predefined targets. This bonus is paid in March, each year.

2. At December 31, 2015, it includes the provision for 30% of the minimum dividend for 2015 (See note 27 letter d).

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d) Accounts payable to related entities, non-current:

Taxpayer IDName of related Party

Country of Origin Currency TypeNature of the relationship

12/31/2016 12/31/2015

ThCh$ ThCh$

ForeignerBaluma Holding S.A. (3)

EE.UU USDCommon shareholder

- 132.365.293

Total - 132.365.293

3. At December 31, 2015, corresponds to the existing obligation

with Baluma Holdings S.A., which has investments in Enjoy S.p.A,

or its designee, which is generated by valuing the PUT option

of Baluma Holdings (seller) with Enjoy Spa Holdings (Buyer),

for shares representing 55% of the stake in Baluma S.A. This

obligation is valued at present value from the earliest date that

the option can be exercised, whose exercise period expires on 31

May 2018. This obligation has been classified in Accounts payable

to related entities, current, since according to the agreement

dated December 30, 2016, the option was to be exercised January

30, 2017.

Balances receivable and payable to related parties relate to the

normal operations in terms of their purpose and conditions; certain

of which bear interest. Transactions with related companies are

of immediate payment or to 30 days. These operations are in

accordance with the provisions of Title XVI of the Act No. 18,046

on Joint Stock Corporations.

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e) Transactions

At 31 December 2016 and 2015, the main transactions with related parties were as follows:

12/31/2016 12/31/2015

Taxpayer ID related party

Name of related partyNature of the relationship

Description of the transaction Country Currency

Effect on income

(debit) credit

Effect on income (debit) credit

ThCh$ ThCh$ ThCh$ ThCh$

59.102.800-6 Limari Finances Inc. Common Shareholder Impairment Panamá USD 58.477 (58.477) - -

59.102.800-6 Limari Finances Inc. Common Shareholder Exchange difference Panamá USD - - 8.515 8.515

77.438.400-6 Antonio Martínez y Cía. III Common Shareholder Impairment Chile Pesos 51.927 (51.927) - -

77.438.400-6 Antonio Martínez y Cía. Common Shareholder Sale of services and others Chile Pesos - - 19.201.378 16.135.612

77.438.400-6 Antonio Martínez y Cía. Common Shareholder Collection of trade receivables Chile Pesos - - 7.762.823 -

77.438.400-6 Antonio Martínez y Cía. Common ShareholderPurchase of services and others

Chile Pesos - - 1.902.787 (1.598.981)

77.438.400-6 Antonio Martínez y Cía. Common Shareholder Payments to suppliers Chile Pesos - - 1.692.686 -

77.438.400-6 Antonio Martínez y Cía. Common Shareholder Loans granted Chile Pesos - - 1.215.780 -

77.438.400-6 Antonio Martínez y Cía. Common Shareholder Collection of loans granted Chile Pesos - - 6.854.813 -

77.438.400-6 Antonio Martínez y Cía. Common Shareholder Debt recognition interest Chile Pesos - - 196.456 196.456

99.598.660-4 Casino de Colchagua S.A. Affiliate Sale of management services Chile Pesos 367.029 205.507 546.385 459.147

99.598.660-4 Casino de Colchagua S.A. AffiliateCollection of management services

Chile Pesos 450.640 - 379.161 -

99.598.660-4 Casino de Colchagua S.A. AffiliateReimbursement of expenses incurred

Chile Pesos 1.470 - 130 -

99.598.660-4 Casino de Colchagua S.A. AffiliatePayment of reimbursement expenses incurred

Chile Pesos 1.470 - 130 -

99.598.660-4 Casino de Colchagua S.A. Affiliate Commercial interest Chile Pesos 52.868 52.868 33.524 (33.524)

99.598.660-4 Casino de Colchagua S.A. Affiliate Borrowings Chile Pesos 480.000 - 360.000 -

99.598.660-4 Casino de Colchagua S.A. Affiliate Payment of borrowings Chile Pesos 328.160 - - -

99.598.660-4 Casino de Colchagua S.A. Affiliate Loans granted Chile Pesos - - 14.884 -

99.598.660-4 Casino de Colchagua S.A. Affiliate Collection of loans granted Chile Pesos 141.188 - 14.883 -

99.598.660-4 Casino de Colchagua S.A. AffiliatePurchase of services and others

Chile Pesos 494 (494) - -

Foreign Baluma Holding S.A. Common ShareholderValuation of obligation for PUT 55% Baluma S.A. shares (exchange difference)

EEUU USD 6.638.827 - 26.772.126 -

Foreign Casino Grad D.D. Affiliate Exchange difference Croacia Kunas 51.090 (51.090) 59.099 59.099

Various Key executives Key executives Increase during the period Chile Pesos 746.645 (746.645) 889.337 (889.337)

Various Key executives Key executives Payments to suppliers Chile Pesos 889.337 - 716.000 -

Foreign Cela S.A. Joint venture Sale of services and others Argentina ARG$1.104.619

1.104.6191.672.076

1.405.106

Foreign Cela S.A. Joint venture Collection of trade receivables Argentina ARG$758.714

(758.714)1.015.634

-

Foreign Cela S.A. Joint venture Tax withholding Argentina ARG$ - - 308 (308)

Foreign Cela S.A. Joint venture Interest accrued Argentina ARG$ - - 93.490 (93.490)

Foreign Cela S.A. Joint venture Exchange difference Argentina ARG$ 1.097.699 (1.097.699) (41.490) 41.490

Foreign Cela S.A. Joint venturePurchase of services and others

Argentina ARG$ 6.717 (6.717) 2.858 (2.858)

Foreign Cela S.A. Joint venture Borrowings Argentina ARG$ 50.735 - 708.925 -

Foreign Baluma Holding S.A. Common ShareholderOpening balances Baluma S.A. (exchange difference)

EEUU USD - - 158.945 (158.945)

78.422.870-3Inv. e Inmobiliaria Almonacid Ltda.

Parent CompanyAccrual additional dividend year 2014

Chile Pesos - - 315.849 -

78.422.870-3Inv. e Inmobiliaria Almonacid Ltda.

Parent CompanyAccrual additional dividend year 2015

Chile Pesos 568.406 - 852.423 -

78.422.870-3Inv. e Inmobiliaria Almonacid Ltda.

Parent Company Dividend payment Chile Pesos 1.420.829 - 789.519 -

88.403.100 - 1 Inv. Cumbres Ltda. Parent CompanyAccruel additional dividend year 2014

Chile Pesos - - 65.025 -

88.403.100 - 1 Inv. Cumbres Ltda. Parent CompanyAccrual additional dividend year 2015

Chile Pesos 117.018 - 175.308 -

88.403.100 - 1 Inv. Cumbres Ltda. Parent Company Dividend payment Chile Pesos 292.326 - 162.439 -

IAS 24 provides that it will disclose that transactions between related parties have been carried out in equal conditions to the transactions

with mutual independence between the parties, only if such terms can be substantiated.

Charges and payments have been made to the accounts receivable from related parties, due to sales turnover of materials, equipment,and

services.

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Sales and services have a short-term maturity.

f) Compensation to key management executives and administrators

The company is managed by a Board composed of 9 members,

who remain for a period of 3 years and may be reappointed.

For these purposes, the company has defined key executives

as the ones who define macro policies and guidelines for the

company and that directly affect business results, including

frontline Executives, General Managers, and Directors.

f.1) Directors Committee

In accordance with Article 50-bis of Law No. 18.046, Enjoy S.A.

has a committee of 3 members who have the faculties referred to

in that Article.

f.2) Salaries and other benefits

Board members and other key executives of Enjoy S.A. have

earned the salaries described below, as the Directors wages, listed

in the following exercises:

Item

12/31/2016 12/31/2015

ThCh$ ThCh$

Wages 1.734.689 1.837.391

Board fees 372.082 402.150

NOTE 12 INVENTORIES

At 31 December 2016 and 31 December 2015, this item consists of the following:

Item 12/31/2016 12/31/2015

ThCh$ ThCh$

Perishables 601.743 571.709

Non-perishables 276.142 415.978

Beverages 873.927 778.627

Gaming articles 538.179 371.792

Gift shop articles 159.866 177.559

Consumables and supplies 1.581.580 1.110.306

Advertisement material 152.550 166.267

Other inventories 260.584 289.585

Provision for obsolescence (321.213) (289.088)

Total 4.123.358 3.592.735

12/31/2016 12/31/2015

ThCh$ ThCh$

Costs of inventory recognized as expenses during the period (19.865.534) (18.300.474)

The company periodically assesses the net realizable value of its

inventories.

Assets included in inventories are valued at the lowest value

between their acquisition costs and net realizable value. The

company has no inventories pledged as collateral to the closing

date of each reported year.

The company has no inventory on consignment at the close of

each reported year. Inventories of the company have a turnover

under a year.

The impairments loss the inventory was ThCh$ 36.790 and

ThCh$ 21,110 as of December 31, 2016 and 2015 respectively. These

decreases are recognized in the cost of sales item in the income

statement.

The company is monitoring monthly if there is evidence of

impairment of inventories and recording such against results

when there is evidence.

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NOTE 13 CURRENT TAX RECEIVABLE ANDPAYABLE

a) Current tax assets

Breakdown of current tax assets net to 31 December 2016 and 2015 is as follows:

12/31/2016 12/31/2015

ThCh$ ThCh$

Excess of monthly provisional payments over current taxes payable by tax-paying entity 1.314.590 598.375

Provisional payment for profits absorbed (i) 3.600.175 3.607.955

Other refundable taxes (ii) 2.249.971 2.561.974

Total 7.164.736 6.768.304

(i) The companies requesting refundable taxes for provisional payment due to absorbed profits are under review by the IRS, that is in

the process of validating the credits for first category tax and tax losses that caused them.

(ii) Includes supervised credit and donations.

b) Current tax liability

Breakdown of current tax liabilities nets, to 31 December 2016 and 2015 is as follows:

12/31/2016 12/31/2015

ThCh$ ThCh$

Income taxes payable 1.000.521 2.092.347

Single tax liability (35%) 615.281 941

Total 1.615.802 2.093.288

NOTE 14 OTHER FINANCIAL ASSETS, NON-CURRENT

The breakdown of other non-current financial assets to 31 december 2016 and 2015 is as follows:

Institution Instruments12/31/2016 12/31/2015

ThCh$ ThCh$

Club Unión El Golf S.A. (i) Shares 3.200 3.800

Pacifico V Región S.A. (i) Shares 3.365 3.152

Almendral S.A. (i) Shares 3.364 3.584

Call option shares of Baluma S.A. (a) Call Option - 45.440.046

Call option shares of FIP BP Capital (b) Call Option 9.750.157 4.475.366

Instrumentos derivados Euroamérica Swap 4.285.894 1.974.987

Others 47.612 44.662

Total 14.093.592 51.945.597

(i) These instruments are valued at the end of each year reporting at market value if there is any market for them.

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a) Call option of Baluma S.A. shares

The Call Option represents the value of the Call and Put contracts

agreed by Enjoy and Caesars Entertainment Corporation. Baluma

has a call contract with two options, one where Enjoy buys 55% of

Casino at a defined price, the “Call”, and the other where Caesars

Entertainment Corporation sells the rest of the shares in Baluma

to Enjoy at a defined price, the “Put”. According to the contract,

three years after 31 May 2013, Enjoy or Caesars Entertainment

Corporation may exercise the “Call” or “Put”, respectively. The

option will expire in five years. If Enjoy chooses to exercise the

“Call” that price will be the higher of the “Original Equity Valuation”

or the “Strike Price Equity Valuation” and if Caesars exercises the

“Put”, the price will be the lower of the “Original Equity Valuation”

and the “Strike Price Equity Valuation “.

On December 30, 2016, Inversiones Enjoy SpA., Enjoy S.A. and

Baluma Holding S.A. signed an agreement promising each other

to establish the bases for financing the amount to be paid for 55%

of Baluma S.A. and for Baluma Holdings S.A. to exercise the PUT

option, thereby rejecting the CALL option in force. The above

means that the value of the “Call Option” asset will be zero, with

an impairment of ThCLP$ 43.846.289 (USD 65.5 million) being

recorded. See note 28 – Composition of relevant results e) Other

gains (losses).

b) Call option of FIP BP Capital shares

Enjoy S.A., has an irrevocable Call option granted by the FIP

for all shares owned by the subsidiary Company Inversiones

Inmobiliarias Enjoy S.p.A. Enjoy S.A. can exercise the call option,

partially or fully up to 8 years from 19 January 2015. The purchase

price for each share will be the result of the subscription price of

the shares, which is 1.32386 UF (indexed units), for each one of

these increased at 2% annual compounded, calculated for annual

prices expiring between the start date and the effective date of

price payment.

To value this purchase option, the Company used the Binomial

Tree methodology, being consistent with the methodology used

to value its other option. In the determination of fair value for the

valuation of the financial assets that are recorded through changes

in its fair value, the management ordered studies conducted by

independent third parties that incorporate assumptions such as

the determination of the risk free rate, valuation of the underlying

asset and the real estate price (see note 23 letter d).

The positive change in the Call option from December 31, 2015 to

December 31, 2016 was ThCLP$ 5.090.997, which was recorded in

the Statement of income by function under Other gains (losses).

As a result of the above, the valuation of the Call option at

December 31, 2016 rose to ThCLP$ 9.750.157.

c) Reconciliation of level 3 fair value measurements

Call option shares of Baluma S.A.

12/31/2016 12/31/2015

ThCh$ ThCh$

Balance at 1 January 45.440.046 39.163.892

Impairment (43.846.289) -

Revaluation increase/(decrease) 994.812 (277.156)

Effect of foreign currency exchange differences (2.588.569) 6.553.310

Balance at 31 December - 45.440.046

Call option shares of FIP BP Capital

12/31/2016 12/31/2015

ThCh$ ThCh$

Balance at 1 January 4.475.366 -

Revaluation increase/(decrease) 5.090.997 4.475.366

Indexation for designated assets for inflation 183.794 -

Balance at 31 December 9.750.157 4.475.366F

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NOTE 15 INTEREST IN SUBSIDIARIES

a) Summary of financial information of significant subsidiaries

The summary of financial information of the subsidiaries included in consolidation to 31 December 2016 is as follows:

Company Country of

acquisition

Functional

currency Percentage

Current

Assets

Non-

current

assets

Current

Liabilities

Non-

current

liabilities

Revenue ExpensesIncome

(loss)

ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$

Enjoy Gestión Ltda. Chile CLP 99,98% 121.349.268 77.704.388 197.698.283 - 191.622.859 (193.868.447) (2.245.588)

Inversiones Enjoy S.p.A. Chile CLP 100,00% 57.541.489 239.723.486 261.910.671 42.021.236 84.578.051 (129.531.102) (44.953.051)

Inversiones Inmobiliarias Enjoy S.p.A. Chile CLP 63,20% 28.575.455 157.472.741 11.095.145 97.917.812 23.987.430 (17.564.248) 6.423.182

Total 207.466.212 474.900.615 470.704.615 139.939.048 300.188.340 (340.963.797) (40.775.457)

The summary of financial information of the subsidiaries included in consolidation to 31 December 2015 is as follows:

Company Country of

acquisition

Functional

currency Percentage

Current

Assets

Non-

current

assets

Current

Liabilities

Non-

current

liabilities

Revenue ExpensesIncome

(loss)

ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$

Enjoy Gestión Ltda. Chile CLP 99,98% 74.537.059 85.265.726 155.912.289 - 148.281.378 (150.311.093) (2.029.715)

Inversiones Enjoy S.p.A. Chile CLP 100,00% 54.087.437 306.835.943 133.518.666 181.417.301 87.675.342 (93.021.133) (5.345.791)

Inversiones Inmobiliarias Enjoy S.p.A. Chile CLP 63,20% 24.894.529 163.801.395 10.304.751 101.515.813 23.057.438 (15.734.399) 7.323.039

Total 153.519.025 555.903.064 299.735.706 282.933.114 259.014.158 (259.066.625) (52.467)

b) Investments in significant subsidiaries

b1.) At 21 January 2015, the Superintendency of Securities

and Insurance was informed that the subsidiary, Inversiones

Inmobiliarias Enjoy S.p.A., direct subsidiary of Enjoy, through

which it develops its Chilean real estate business, had successfully

completed a capital increase totaling $19.498,874.230, which was

signed on to by the private investment fund Private Investment

Fund BP Preferred Shares, with which it will hold 36.8% of

company, represented in Series B preferred shares, whereby Enjoy

S.A. holds 63.2% through Series A ordinary shares. According to

the statutes of Inversiones Inmobiliarias Enjoy S.p.A, its shares are

divided among Series A ordinary and Series B preference shares.

The preference has a term of 8 years starting from 21 January 2015.

Regarding the preferences of Series B, in general terms, each of

these shares shall be entitled to receive a preferential dividend. If

there is insufficient income in a period, the preferential dividend

may be paid from accrued or retained earnings. Furthermore,

dividend distributions may be made on the Series A shares only

when current year income is sufficient and preferential dividend

obligations have been taken into account first. Series B shares

have the right to appoint a Director of the five of that make up the

Board of the Inversiones Inmobiliarias Enjoy S.p.A. In this regard,

certain matters may be agreed upon with a vote by the director

appointed by the Series B Shares or unanimity of shares issued

with the right to vote of the Series B, depending on whether the

matter is under jurisdiction of the board or the shareholders.

These issues relate to the provision of real property, transactions

with related parties, entering into contracts, and modifications of

the company or its subsidiaries, among others.

b.2) On 31 December of 2015, partners of the company Antonio

Martínez y Cía. (AMC) and the company Enjoy Gestión Ltda.,

earned into agreement which transferred control to Enjoy

Gestión. Additionally, the AMC Partners transferred control to

Enjoy Gestión Ltda., who acquires the right to receive income

generated and/or distributed by the Company starting from that

agreement’s date. In turn, Enjoy Gestión agrees to review, extend,

and/or modify existing contracts between the parties. The above

transfer of rights is executed to gain control of the Company and

prepare for the bidding process and awarding of the license to

operate the Viña del Mar Casino under the new regulation.F

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NOTE 16 INVESTMENTS IN ASSOCIATES

a) Summarized relevant information for investments in associates

Information at 31 December 2016:

CompanyCountry of

acquisition

Functional

currency

Percentage

of interest

Current

Assets

Non-

current

assets

Current

Liabilities

Non-

current

liabilities

Revenue ExpensesIncome /

Loss (net)

ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$

Casino de Colchagua S.A. Chile CLP 40,00% 4.625.507 523.284 1.493.038 - 5.515.982 (4.348.892) 1.167.090

Cela S.A. Argentina ARS 53,00% 8.721.951 6.692.211 4.499.232 2.663.994 18.445.864 (17.439.989) 1.005.875

Casino Grad d.d. Croacia HRK 46,54% 130.621 - 342 2.137.975 - (20.905) (20.905)

Total 13.478.079 7.215.495 5.992.612 4.801.969 23.961.846 (21.809.786) 2.152.060

Information at 31 December 2015:

CompanyCountry of

acquisition

Functional

currency

Percentage

of interest

Current

Assets

Non-

current

assets

Current

Liabilities

Non-

current

liabilities

Revenue ExpensesIncome /

Loss (net)

ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$

Casino de Colchagua S.A. Chile CLP 40,00% 3.968.235 774.791 1.434.365 - 5.096.905 (4.214.679) 882.226

Cela S.A. Argentina ARS 53,00% 8.173.643 8.371.917 3.580.683 2.376.502 21.031.915 (20.394.970) 636.945

Casino Grad d.d. Croacia HRK 46,54% 144.824 - 532 2.294.345 - (74.424) (74.424)

Total 12.286.702 9.146.708 5.015.580 4.670.847 26.128.820 (24.684.073) 1.444.747

b) Investments in associates and jointly controlled companies

Accounting movements for the year ended December 31, 2016 and December 31, 2015 are as follows:

Company

Main ActivityCountry of

acquisition

Functional

currency

Porcentaje de

Participación

Balance at Share of

profit (loss)

Translation

differences

Other

increases Balance at

1/1/2016 of

associates(decreases) 12-31-2016

ThCh$ ThCh$ ThCh$ ThCh$ ThCh$

Casino de Colchagua S.A.

(investment)

Casino de Juegos

Santa CruzChile CLP 40,00% 2.083.873 385.572 - (327.998) 2.141.447

Casino de Colchagua S.A.

(goodwill)

Casino de Juegos

Santa CruzChile CLP 30,00% 131.615 - - - 131.615

Casino Grad d.d.Casino de Juegos

CroaciaCroacia HRK 46,54% (999.774) (9.729) 75.924 - (933.579)

Cela S.A. (investment)Casino de Juegos

MendozaArgentina ARS 53,00% 6.240.451 513.934 (1.663.407) (421.996) 4.668.982

Cela S.A. (goodwill)Casino de Juegos

MendozaArgentina ARS 53,00% 2.112.244 - (309.770) - 1.802.474

Total 9.568.409 889.777 (1.897.253) (749.994) 7.810.939

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Company Main ActivityCountry of acquisition

Functional currency

Porcentaje de Participación

Balance at Share of

profit (loss)Translation differences

Other increases

Balance at

1/1/2015 of

associates(decreases) 12-31-2015

ThCh$ ThCh$ ThCh$ ThCh$ ThCh$

Casino de Colchagua S.A. (investment)

Casino de Juegos Santa Cruz

Chile CLP 40,00% 1.953.435 271.627 - (141.189) 2.083.873

Casino de Colchagua S.A. (goodwill)

Casino de Juegos Santa Cruz

Chile CLP 30,00% 131.615 - - - 131.615

Casino Grad d.d. Casino de Juegos Croacia

Croacia HRK 46,54% (913.921) (34.637) (51.216) - (999.774)

Cela S.A. (investment)Casino de Juegos Mendoza

Argentina ARS 53,00% 7.827.522 280.474 (1.867.545) - 6.240.451

Cela S.A. (goodwill)Casino de Juegos Mendoza

Argentina ARS 53,00% 2.771.840 - (659.596) - 2.112.244

Total 11.770.491 517.464 (2.578.357) (141.189) 9.568.409

NOTE 17 SHARES IN JOINT VENTURES

The shares Enjoy S.A. holds in joint ventures correspond to the

investment Cela S.A., which is an investment that is accounted for

using the equity method. Enjoy holds an indirect stake through

the subsidiary Inversiones Enjoy S.p.A of 53% in Cela S.A. whose

ownership and control is shared with the Camsen group of

Argentina.

CELA S.A.

On 27 March 2008, Enjoy International Ltda., named Inversiones

Enjoy S.p.A, direct subsidiary of Enjoy S.A., signed a framework

agreement to acquire a 50% share in the companies Cela S.A. and

K -Bin S.A.

On 29 December 2008, Enjoy International Ltda., Inversiones

Enjoy S.p.A. transferred the shareholding of Cela S.A. and K-Bin

SA to its Chilean subsidiary Inversiones Andes Entretencion Ltda.

The investment undertaken by Inversiones Andes Entretención

Ltda. will be the result of a negotiation established in the

aforementioned framework agreement, initially estimated at

approximately US $ 32.000.000. To date, US$ 31.604.636

have been paid under this agreement, completing the pledged

contributions.

Inversiones Andes Entretención Limitada, an indirect subsidiary

of Enjoy S.A., increased its share from 50% to 53%. It should be

noted that the described operation did not imply a change in

control of that company because the statute provides two shares

classes (A for the Argentinean group and B for Enjoy S.A.), and

requires most actions to be enjoined by each class to control the

company. Holding 6% of Class A shares by Enjoy does not imply

control of class A.

According to the above, there are no contributions or outstanding

accounts relating to the Framework Agreement. Neither are there

assets and liabilities that must be separately disclosed as a result

of the joint venture agreement.

As of 31 December 2016, dividends have been received from

Argentina Cela S.A.

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NOTE 18 INTANGIBLE ASSETS OTHER THAN GOODWILL

a) Composition

The breakdown of this item as of 31 December 2016 is as follows:

Gross AssetAccumulated Amortization

Net Asset

ThCh$ ThCh$ ThCh$

Casino gaming operating permits (1) 112.747.402 (46.412.344) 66.335.058

Advisory agreement Casino Rinconada (2) 13.041.720 (6.063.949) 6.977.771

Other intangibles necessary to get operating permit (3) 5.628.871 (3.165.188) 2.463.683

Software 9.602.023 (6.791.362) 2.810.661

Permit related to water rights 291.736 - 291.736

Total 141.311.752 (62.432.843) 78.878.909

As of 31 December 2015:

Gross AssetAccumulated Amortization

Net Asset

ThCh$ ThCh$ ThCh$

Casino gaming operating permits (1) 116.285.991 (41.834.496) 74.451.495

Advisory agreement Casino Rinconada (2) 13.041.720 (5.153.805) 7.887.915

Other intangibles necessary to get operating permit (3) 5.624.672 (2.821.228) 2.803.444

Software 9.128.177 (5.877.938) 3.250.239

Permit related to water rights 265.515 - 265.515

Total 144.346.075 (55.687.467) 88.658.608

1. See note 18, letter c).

2. As part of the acquisition and takeover of Salguero Hotels Chile S.A. (now Casino Rinconada S.A.), the subsidiary of Enjoy, Enjoy

Consultora S.A., acquired a consultancy contract which gives rights to provide consultancy on the operation of the Casino during

the term of the operating permit. Enjoy Consultora S.A. paid USD 24.780.482 (ThCh$13.041.720) for the acquisition of this contract.

This contract pays Enjoy Consultora S.A, a monthly amount equivalent to 2 % of net gaming revenue and 10% of EBITDA generated

by the operating company. Note that the revenue and cost of sales are eliminated, as applicable, in the process of consolidation of

the Consolidated Financial Statements of Enjoy S.A. and subsidiaries.

3. This item includes expenditures related to costs necessary to obtain the operating permit, such as improvements in Ruinas de

Huanchaca in the city of Antofagasta, road improvements, and roadwork for the community in the communes where the operation

permit is set. These disbursements are made only once, either at the time of receiving the municipal grant or renewal thereof and/

or when the operating permit for casino games under Law No. 19,995 is obtained.

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The breakdown of other intangibles necessary to obtain the operating permit for each of the periods under review is as follows: At 31

December 2016:

Item Gross AssetAccumulated Amortization

Net Asset

ThCh$ ThCh$ ThCh$

Disbursements necessary to obtain operating permits:

Land and road infrastructure Antofagasta 2.892.721 (1.496.465) 1.396.256

Ruins Museum of Huanchaca 2.062.791 (1.043.674) 1.019.117

Works and premises of Viña del Mar restaurant 457.150 (457.150) -

Land and road infrastructure Coquimbo 144.046 (140.525) 3.521

Road infrastructure Rinconada los Andes 67.964 (25.827) 42.137

Others 4.199 (1.547) 2.652

Total 5.628.871 (3.165.188) 2.463.683

As of 31 of December, 2015:

Item Gross AssetAccumulated Amortization

Net Asset

ThCh$ ThCh$ ThCh$

Disbursements necessary to obtain operating permits:

Land and road infrastructure Antofagasta 2.892.721 (1.310.351) 1.582.370

Ruins Museum of Huanchaca 2.062.791 (896.332) 1.166.459

Works and premises of Viña del Mar restaurant 457.150 (457.150) -

Land and road infrastructure Coquimbo 144.046 (137.004) 7.042

Road infrastructure Rinconada los Andes 67.964 (20.391) 47.573

Total 5.624.672 (2.821.228) 2.803.444

b) Report of transactions

Movement of intangible assets at 31 December 2016 are as follows:

Operating permit gaming

casino, net

Consultancy Agreement Rinconada

Casino

Other intangibles

necessary to get operating

permit

Software, NetWater rights, easement and

mining protestsTotal

ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$

Opening balance at 1 January 74.451.495 7.887.915 2.803.444 3.250.239 265.515 88.658.608

Additions - - - 885.615 26.221 911.836

Other increases (decreases) due to variations in Foreign currency

(3.238.636) - - (217.492) - (3.456.128)

Amortization expenses (4.877.801) (910.144) (343.960) (1.055.884) - (7.187.789)

Other increases (decreases) - - 4.199 (51.817) - (47.618)

Total 66.335.058 6.977.771 2.463.683 2.810.661 291.736 78.878.909

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Movement of intangible assets at 31 December 2015 are as follows:

Operating permit gaming

casino, net

Consultancy Agreement Rinconada

Casino

Other intangibles

necessary to get operating

permit

Software, NetWater rights, easement and

mining protestsTotal

ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$

Opening balance at 1 January 72.436.452 8.798.059 3.182.200 3.415.209 265.515 88.097.435

Additions - - - 417.403 - 417.403

Other increases (decreases) due to variations in Foreign currency

8.195.634 - - 296.509 - 8.492.143

Amortization expenses (6.180.591) (910.144) (378.756) (1.004.094) - (8.473.585)

Other increases (decreases) - - - 125.212 - 125.212

Total 74.451.495 7.887.915 2.803.444 3.250.239 265.515 88.658.608

Software licenses are received through non-renewable contracts;

for this, the company has set a useful life for them of 3 to 5 years.

They are amortized on a straight-line basis over their estimated

useful lives; depreciation of each reporting year is recognized in

income statement, in the item cost of sales. According to IAS 36,

impairment tests must be made to the value of the recoverable

assets whenever there is an indication that the asset may have

suffered impairment. It even states that the recoverable amount

of an intangible asset with an indefinite useful life is measured

annually regardless of whether there is any indication that it

might be impaired. The main intangible assets of the company

and its subsidiaries have a finite useful life such as; operating

permits of casino games. In the case of single intangible assets

with an indefinite useful life, such as water rights and easements,

based on an analysis of all of the relevant factors, there is no

foreseeable limit to the period over which the asset is expected to

generate net cash inflows for the entity. For the fiscal year ended

31 December 2015 and 2014, the assets of finite usefull life show

no signs of impairment. The charge to income for amortization

of intangibles for the years ended 31 December 2016 and 2015

was ThCh$7.187.789 and ThCh$8.473.585, respectively. At 31

December 2016 and 2015, no relevant intangible assets were

pledged as collateral.

As of December 2016, there were no material engagements for

the acquisition of intangible assets. No relevant, fully amortized

intangible assets are in use at 31 December 2016 and 2015.

c) Casino operation permits

c.1) Municipal License and other Foreign Licenses

In this area, the following concept associated with the municipal license of casinos and other foreign ones to 31 December 2016 is included:

Gross AssetAccumulated Amortization

Net Asset

ThCh$ ThCh$ ThCh$

License Pucón 1.700.000 (1.675.862) 24.138

License Coquimbo 4.422.000 (4.342.953) 79.047

License Uruguay 11.380.990 (1.704.174) 9.676.816

Total 17.502.990 (7.722.989) 9.780.001

The licenses apply to single payments made to the Municipality of Coquimbo and Pucon for the casino operating license and are amortized

on a straight-line basis over the term of the license. The amortization for each period is recognized in the income statement, in costs of

sales. In the case of the license of Uruguay, this payment is the amount of the additional fee paid to the Uruguayan Government for the

renewal of the license agreement, effective from 1 January 2016 of the gaming casino Conrad, located in Punta del Este.

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c.2) Casino Operating License acquired in a business combination

Gross AssetAccumulated Amortization

Net Asset

ThCh$ ThCh$ ThCh$

Operaciones Integrales Coquimbo Ltda. (i) 1.396.332 (1.371.427) 24.905

Enjoy Gestión Ltda. (i) 3.102.223 (3.046.892) 55.331

Slots S.A. (i) 8.783.487 (8.626.826) 156.661

Campos del Norte S.A. (ii) 4.212.749 (4.171.733) 41.016

Casino Rinconada S.A. (iii) 30.910.429 (14.458.819) 16.451.610

Baluma S.A. (iv) 46.839.192 (7.013.658) 39.825.534

Total 95.244.412 (38.689.355) 56.555.057

(i) Corresponds to the fair value assigned to the license after a stock swap during 2006 for the investments acquired. Because of this

operation, Enjoy S.A became an indirect and direct owner of 90% of Slots S.A., 99,95% of Enjoy Chile Ltda., now Enjoy Gestión Ltda.,

99.8% of Inversiones del Norte S.A., now Operaciones Integrales Coquimbo Ltda.

(ii) Corresponds to the fair value assigned to the license value of casino games located in the city of Coquimbo determined from the

acquisition of 37.5% stake in the company Campos del Norte S.A., direct and indirect subsidiary of Enjoy S.A., dated 19 August 2008.

(iii) Corresponds to the fair value assigned to the value of the casino operating permit located in the commune of Rinconada de los

Andes determined from the acquisition of 70% stake of the company Salguero Hotels Chile S.A., now Casino Rinconada S.A., indirect

subsidiary of Enjoy S.A., dated 26 March 2010.

(iv) Corresponds to the fair value assigned to the value of the operating permit for the casino located in Punta del Este, determined as

a result of the acquisition of 45% shares and takeover of the company Baluma S.A. indirect subsidiary of Enjoy S.A. dated on 31 May

2013.

NOTE 19 GOODWILL

Goodwill balance at the end of each year is composed as follows:

a) Composition

Investor Issuer / UGE

Original 12/31/2016 12/31/2015

currency ThCh$ ThCh$

Inversiones del Norte Ltda. (today Operaciones Integrales Coquimbo Ltda.)

Campos del Norte S.A. CLP 2.787.743 2.787.743

Enjoy Gestión Ltda. Inversiones y Servicios Guadalquivir S.A. CLP 522.984 522.984

Total 3.310.727 3.310.727

b) Transaction

Changes in goodwill are as follows:

As of 31 December 2016:

Campos del Norte S.A.Inversiones y Servicios

Guadalquivir S.A.Total

ThCh$ ThCh$ ThCh$

Initial balance at 1 January 2016 2.787.743 522.984 3.310.727

Other increases (decreases) - - -

Total 2.787.743 522.984 3.310.727

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As of 31 December 2015:

Campos del Norte S.A.

Inversiones y Servicios

Guadalquivir S.A.Total

ThCh$ ThCh$ ThCh$

Initial balance at 1 January 2015 2.787.743 522.984 3.310.727

Other increases (decreases) - - -

Total 2.787.743 522.984 3.310.727

The goodwill allocated to Cash Generating Units (CGUs) is tested

annually for impairment or more frequently if there are indications

that the CGU may be impaired. The recoverable amount of each

CGU is determined as the highest figure between the value in use

or fair value, less the cost of sales. To determine the value in use,

the company has used cash flow projections for Casino Coquimbo

and Colchagua up to years 2023 and 2017 respectively, based

on estimates and projections reviewed by senior management

for the same period. Goodwill acquired through business

combinations have been analyzed in order to determine a possible

impairment according to their respective cash generating units

(CGU) described in Note 2g). The group performed the annual

impairment test as of December 31, 2016. The recoverable amount

has been determined based on projected cash flows, depending

on the duration of each casino license, which has been approved

by the company’s management and is updated periodically as the

real income growth. The discount rate applied is the WACC rate

(10.23%), which is adjusted each projected year in order to reflect

the effects of the value of money over time.

c) Key assumptions used in the calculations:

Setting of the impairment tests was performed considering the

following assumptions as sensitive:

• Projected Revenue

• Discount rates

• Market assumptions

Projected RevenueThe projection made by the company regarding future income

growth corresponds to growth rates that are consistent with the

historical background of each business unit.

Discount rateThe management used the WACC rate to discount the future cash

flows of the company a rate that represents the market value of

the specific business and industry risk, taking into account the

value of money over time and individual asset risks under analysis.

Market assumptionsCertain market assumptions have been taken into account for

the projection of future cash flows, such as projected inflation,

business growth, industry growth, and of the country.

Because of this analysis, the management has concluded that

no impairment of these intangibles has been identified, as the

recoverable value of the goodwill is higher than the book value

recorded in the financial statements at 31 December 2016 and

2015.

NOTE 20 PROPERTY, PLANT AND EQUIPMENT

a) Composition

The detail for each of the periods under review is as follows:

At 31 December 2016:

Gross AssetAccumulated Depreciation

Net Asset

ThCh$ ThCh$ ThCh$

Land 95.519.832 - 95.519.832

Construction in progress 3.047.554 - 3.047.554

Buildings 303.394.958 (82.454.760) 220.940.198

Machinery and Equipment 31.168.438 (23.755.774) 7.412.664

Slot Machines 56.740.104 (47.981.064) 8.759.040

Transportation Vehicles 474.178 (294.402) 179.776

Other property, plant and equipment 25.922.565 (20.694.146) 5.228.419

Total 516.267.629 (175.180.146) 341.087.483

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At 31 December 2015:

Gross AssetAccumulated Depreciation

Net Asset

ThCh$ ThCh$ ThCh$

Land 97.557.562 97.557.562

Construction in progress 5.063.675 - 5.063.675

Buildings 310.614.971 (77.072.967) 233.542.004

Machinery and Equipment 30.753.570 (20.990.947) 9.762.623

Slot Machines 54.528.364 (43.922.056) 10.606.308

Transportation Vehicles 492.657 (256.402) 236.255

Other property, plant and equipment 25.611.211 (19.558.527) 6.052.684

Total 524.622.010 (161.800.899) 362.821.111

According to the requirements of IAS 36, and the analysis performed by the company for the years ended 31 December 2016 and 2015,

there is no evidence of impairment of property, plant, and equipment.

A breakdown of property, plant, and net equipment, by comprehensive project is as follows.

At 31 December 2016:

Net fixed asset

Item Antofagasta Coquimbo Rinconada Viña Pucón Chiloe Uruguay Colombia Corporativo Total

M$ M$ M$ M$ M$ M$ M$ M$ M$ M$

Land 4.704.711 3.401.428 1.355.309 - 8.489.643 1.764.484 75.804.257 - - 95.519.832

Construction in progress - 49.806 189.951 - 15.996 - 2.741.195 - 50.606 3.047.554

Buildings 24.770.156 29.016.523 45.949.968 130.590 9.261.581 14.474.663 96.408.393 - 928.324 220.940.198

Machinery and Equipment 653.726 789.552 1.325.354 446.498 583.062 709.216 2.439.376 153.065 312.815 7.412.664

Slot Machines 768.058 479.032 2.921.988 961.148 714.908 716.642 1.355.481 841.783 - 8.759.040

Transportation Vehicles - 6.523 5.262 - 8.338 4.308 155.345 - - 179.776

Other property, plant and

equipment 306.179 480.399 697.202 331.462 263.449 422.143 1.958.916 650.701 117.968 5.228.419

Total 31.202.830 34.223.263 52.445.034 1.869.698 19.336.977 18.091.456 180.862.963 1.645.549 1.409.713 341.087.483

At 31 December 2015:

Net fixed asset

Item Antofagasta Coquimbo Rinconada Viña Pucon Chiloe Uruguay Colombia Corporativo Total

M$ M$ M$ M$ M$ M$ M$ M$ M$ M$

Land 4.704.711 3.401.428 1.355.309 - 5.920.035 1.764.484 80.411.595 - - 97.557.562

Construction in progress 65.276 336.973 1.716.628 11.027 94.315 - 1.205.821 1.597.429 36.206 5.063.675

Buildings 25.496.704 29.682.403 47.247.545 78.349 9.595.611 15.051.292 105.408.418 - 981.682 233.542.004

Machinery and Equipment 691.413 871.782 1.755.167 461.341 1.328.627 882.403 3.389.314 - 382.576 9.762.623

Slot Machines 805.214 749.060 3.793.127 1.816.382 811.593 1.003.368 1.627.564 - - 10.606.308

Transportation Vehicles 8.479 9.588 767 17.513 5.864 194.044 - - 236.255

Other property, plant and

equipment 461.011 541.002 1.036.414 403.386 179.212 581.359 2.677.262 - 173.038 6.052.684

Total 32.224.329 35.591.127 56.913.778 2.771.252 17.946.906 19.288.770 194.914.018 1.597.429 1.573.502 362.821.111

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b) Rollforward

Rollforward of Property, Plant and Equipment is as follows for the year ended 31 December 2016:

LandConstruction

in progressBuildings

Machinery

and

Equipment

Slot

Machines

Transportation

Vehicles

Other

property,

plant and

equipment

Total

ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$

Opening balance at 1 January 2016 97.557.562 5.063.675 233.542.004 9.762.623 10.606.308 236.255 6.052.684 362.821.111

Additions 2.539.622 2.365.098 622.199 1.579.189 1.972.268 309 1.441.378 10.520.063

Withdrawals - (1.600) (14.037) (7.636) - - (1.671) (24.944)

Transfers to (from) non-current assets - (2.686.950) 985.597 189.891 1.093.039 - 466.041 47.618

Depreciation expense - - (8.155.985) (3.240.729) (4.631.127) (45.670) (2.576.614) (18.650.125)

Other increase (decrease) due to

variations in Foreign currency(4.607.339) (69.090) (6.039.580) (193.122) (93.254) (11.118) (153.399) (11.166.902)

Other increases (decreases) 29.987 (1.623.579) - (677.552) (188.194) - - (2.459.338)

Closing balance at 31 December 2016 95.519.832 3.047.554 220.940.198 7.412.664 8.759.040 179.776 5.228.419 341.087.483

Rollforward of PPE is as follows for the year ended 31 December 2015:

LandConstruction

in progressBuildings

Machinery

and

Equipment

Slot

Machines

Transportation

Vehicles

Other

property,

plant and

equipment

Total

ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$

Opening balance at 1 January 2015 85.848.422 5.255.698 221.229.407 10.571.465 14.791.781 150.487 7.279.974 345.127.234

Additions - 4.220.638 696.271 2.123.512 761.232 197.210 1.183.908 9.182.771

Sales - - - - - (60.182) - (60.182)

Withdrawals - - - (4.391) - - (3.655) (8.046)

Transfers to (from) non-current assets - (4.841.661) 4.355.716 87.905 - - 246.617 (151.423)

Depreciation expense - - (8.012.929) (3.528.198) (5.051.000) (64.484) (3.328.084) (19.984.695)

Other increase (decrease) due to

variations in Foreign currency11.709.140 429.000 15.273.539 512.330 355.636 13.224 483.099 28.775.968

Other increases (decreases) - - - - (251.341) - 190.825 (60.516)

Closing balance at 31 December 2015 97.557.562 5.063.675 233.542.004 9.762.623 10.606.308 236.255 6.052.684 362.821.111

c) Financial leasing

The real estate companies and operating subsidiaries of Enjoy S.A., have leases with option to acquire (last installment) land, buildings,

and slot machines with certain financial institutions.

Details of property, plant and equipment under financial leasing for accounting periods is as follows:

12/31/2016 12/31/2015

ThCh$ ThCh$

Lands 4.960.321 2.420.699

Buildings, net 23.259.784 24.118.894

Slot Machines, net 280.544 561.088

Total 28.500.649 27.100.681

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The breakdown of property, plant, and equipment under financial leasing for each of the infrastructures is as follows:

Antofagasta Infrastructure:

12/31/2016 12/31/2015Company that has the financial obligation of

leasing

ThCh$ ThCh$

Antofagasta Infrastructure Land, net 2.420.699 2.420.699 Inm. Proyecto Integral Antofagasta S.A.

Buildings, net 23.259.784 24.118.894 Inm. Proyecto Integral Antofagasta S.A.

Total 25.680.483 26.539.593

Viña del Mar Infrastructure:

12/31/2016 12/31/2015Company that has the financial obligation of

leasing

ThCh$ ThCh$

Viña del Mar Infrastructure Slot Machines, net 280.544 561.088 Slots S.A.

Total 280.544 561.088

Pucón Infrastructure:

12/31/2016 12/31/2015Company that has the financial obligation of

leasing

ThCh$ ThCh$

Pucón Infrastructure Land, net 2.539.622 - Kuden S.A.

Total 2.539.622 -

The present value of and other information about the future payments for financial leasing are as follows:

At 31 December 2016:

Gross value Interest Present Value

ThCh$ ThCh$ ThCh$

Less than a year 5.068.620 (1.231.556) 3.837.064

1 - 5 years 20.274.494 (3.541.152) 16.733.342

Over five years 11.839.986 (839.354) 11.000.632

Total 37.183.100 (5.612.062) 31.571.038

At 31 December 2015:

Gross value Interest Present Value

ThCh$ ThCh$ ThCh$

Less than a year 4.454.861 (730.037) 3.724.824

1 - 5 years 16.988.197 (2.177.427) 14.810.770

Over five years 12.387.227 (560.635) 11.826.592

Total 33.830.285 (3.468.099) 30.362.186

No payments have been made for contingent fees during accounting periods.

The restrictions imposed by financial leasing agreements are set out in Note 31.3 Contingencies and engagements, point ii).

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d) Operating leases

The most significant operating leases relate to indirect subsidiaries with contracts having terms from 1 year with automatic one-year

renewal limited to 5 years period for machinery and from 1 year to 15 years for property. There is an option to terminate these leases early,

for which the proprietor must be notified in the terms and conditions set forth in each of the contracts.

There are no restrictions imposed by operating lease agreements. The breakdown of expenses for operating leases is as follows:

12/31/2016 12/31/2015

ThCh$ ThCh$

Leasing cost of property 2.364.831 1.771.284

Leasing costs of machinery 2.849.855 2.257.153

Other leasing costs 180.251 132.205

Total 5.394.937 4.160.642

Mainly related to software leases for slot machines and leases of land and property. The breakdown of future payments under operating

leases is as follows:

12/31/2016 12/31/2015

ThCh$ ThCh$

Less than a year 7.259.785 4.834.271

1 - 5 years 16.069.076 11.103.452

Over five years 15.321.103 8.740.238

Total 38.649.964 24.677.961

e) Construction in progress

The breakdown of the construction in progress is as follows:

12/31/2016 12/31/2015

Projects ThCh$ ThCh$

Project Santerra y Ovo Beach Coquimbo - 230.151

Project Master Plan Enjoy Punta del Este 2.741.195 1.205.822

Parking and Road Works - 1.353.920

Project Casino en Isla San Andrés, Colombia - 1.597.429

Others 306.359 676.353

Total 3.047.554 5.063.675

f) Others

The company and its subsidiaries have no fixed assets out of

service that are meaningful or significant assets in use.

The fixed assets of the company have no significant differences

between the book value and market value. In addition, the land

and property of the company were revalued at market value only

once, upon the adoption of IFRS at the transition date (2008).

Similarly, as a result of the acquisition of the companies Casino

Rinconada S.A. (2010) and Conrad Punta del Este (2013), the real

estate of those companies were revalued at market value when

applying the IFRS 3R “Business combinations”,.

There are no capitalized borrowings at December 31, 2015 and

2016.

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NOTE 21

DEFERRED TAXES AND INCOME TAXES

21.1 Deferred taxes

Deferred Taxes Assets and Liabilities

Deferred taxes correspond to the tax amount on profits that Enjoy

S.A. and Subsidiaries estimates to pay (liabilities) or estimates

to recover (assets) in future periods, relating to temporary

differences between the tax or taxation base and the carrying

amount of certain assets and liabilities.

The main asset for deferred tax corresponds to tax losses of

subsidiaries for future recovery. The main liabilities for deferred

tax payable in future periods corresponds to the temporary

differences arising from property, plant, and equipment acquired

in business combinations.

Deferred tax assets and liabilities recognized at 31 December 2016

and 2015 include the following:

Assets Liabilities

Items 12/31/2016 12/31/2015 12/31/2016 12/31/2015

ThCh$ ThCh$ ThCh$ ThCh$

Impairment for bad debts 2.312.708 1.860.047 - -

Unearned income 213.909 365.269 - -

Staff vacation 268.922 340.891 - -

Leasing Creditors 8.521.338 8.165.991 - -

Tax loss carryforwards 25.181.654 23.919.381 - -

Provisions 1.265.520 954.486 - -

Property, plant and equipment - - 17.279.458 20.652.819

Property, plant and equipment from business combinations

- - 16.793.644 17.668.343

Property, plant and equipment in leasing - - 8.045.642 7.200.069

Intangibles - - 10.931.820 13.690.708

Bank obligations - - 522.712 646.804

Reclassification (4.136.957) (4.412.732) (4.136.957) (4.412.732)

Total 33.627.094 31.193.333 49.436.319 55.446.011

Deferred tax es have not been recognized for the temporary

differences between the tax and financial value generated by

investments in related companies. Therefore, no deferred tax is

also recognized for the translation adjustments and ajustments

of associates recored directly in equity, as disclosed in the

comprehensive income statement.

Recovery of deferred tax assets, requires obtaining sufficient

taxable profits in the future. Enjoy S.A. and subsidiaries, estimates

that future earnings projections will cover the recovery of these

assets. The rate applied in calculating temporary differences

is 24%, 25.5% and 27% for Chile, 35% for Argentina, 34% for

Colombia, and 25% for Uruguay.

21.2. Income Taxes

Benefit (expenses) for income and deferred tax to 31 December

2016 and 2015 is as follows:

Current Tax12/31/2016 12/31/2015

ThCh$ ThCh$

Current tax expense (3.797.654) (6.040.203)

Single tax expense (35%) (614.340) (1.277)

Total current tax (4.411.994) (6.041.480)

Deferred tax12/31/2016 12/31/2015

ThCh$ ThCh$

Deferred expense (income) for taxes on creation and reversal of temporary differences 4.326.652 959.940

Benefits from tax losses 1.262.273 2.808.369

Total deferred tax 5.588.925 3.768.309

Income / expense due to income tax 1.176.931 (2.273.171)

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21.3 Effective Rate Settlement

The reconciliation of income tax expense using the statutory rate to the effective rate at 31 December 2016 and 2015 is as follows:

12/31/2016 12/31/2015

M$ ThCh$

Income (expense) due to tax, using legal rate 9.188.507 (2.745.340)

Tax-effected basis on rates of other jurisdictions (26.019) (208.897)

Permanent difference associated with the Call Option (9.639.661) 2.419.092

Other increases (decreases) on legal tax 1.654.104 (1.738.026)

Total adjustments to the tax expense using legal rate (8.011.576) 472.169

Tax related income (expense) using effective rate 1.176.931 (2.273.171)

Reconciliation of the legal tax rate with the effective tax rate is as follows:

12/31/2016 12/31/2015

% %

Legal tax rate -24,0% -22,5%

Effect of legal tax rate of other jurisdictions 0,0% -1,7%

Effect of Call Option 25,2% 19,9%

Other increases (decreases) on legal tax rate -4,3% -14,2%

Total adjustment to legal tax rate 20,9% 3,9%

Effective legal tax rate -3,1% -18,6%

The tax rate used for the reconciliation of the years 2016 and 2015

(in Chile at 31 December 2015 the rate was of 22.5%) corresponds

to the rate of corporation tax (24% for Chile, 25% Uruguay, 35 %

Argentina, 34% Colombia) that institutions must pay on taxable

income under current tax legislation of the country in which they

operate.

a) Tax loss carryforwards

The Company has deferred tax assets related to tax losses arising

from its Casino and Hotel businesses, both in Chile and Colombia.

These tax loss carryforwards have no expiration date.

Chile Tax Reform

On 29 September 2014, Law No. 20.780, was published in the

Official Newspaper, the Tax Reform that modifies the income

taxation system and introduces several adjustments to the tax

system. Among the major changes, the Law adds a new semi-

integrated taxation system, which can be used as an alternative

to the integrated regime of attributed income. The Company

may choose to change the tax system attributed with a rate of

25% through a Special Shareholders Board Meeting to be made

during June through December 2016 for the first adoption, which

is implemented in business year 2017. In that case, the semi-

integrated system provides the progressive increase of the rate

of First category for business years 2014, 2015, 2016, 2017 and

2018 onwards, increasing it up to 21%, 22.5%, 24%,25.5%, and 27%

respectively.

Taxation Simplification Bill

On 15 December 2015, the Taxation Simplification Bill was

submitted to Congress, seeking to simplify the income tax

system, which will become valid in 2017. Added value tax will be

adjusted as well as the anti-circumvention regulations. Regarding

the taxation system, modification of the proposal considers that

Private Companies, as is the case of the Company, must always

pay taxes according to the Semi-Integrated System modality. This

system will later be the general taxation regime for businesses

starting from business year 2017. The rates established by Law

No. 20.780 will be kept, which is: 25.5% in the year 2017 and 27%

in the year 2018. Similarly, credit for global complementary tax

and additional tax will be 65% of the amount of first category tax.

On January 27, 2016, the Tax Reform Simplification bill was

approved. Its purpose is to simplify the income tax systems

that will come into force as of 2017; make adjustments to value

added tax; and also to tax avoidance laws. For the tax system,

the proposed amendment proposes that Corporations (open

or closely-held), such as Enjoy, shall always pay tax using the

Partially Integrated System. Thus, this system will be the general

tax system for the companies as of the 2017 business year.

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NOTE 22 OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES

a) Composition

At 31 December 2016 and 2015, the company presents other current and non-current financial liabilities according to the following

breakdown:

12/31/2016 12/31/2015

Current Non-Current Corriente No Corriente

ThCh$ ThCh$ ThCh$ ThCh$

Loans that accrued interest 48.583.855 17.384.153 50.591.012 26.696.616

Obligations of financial leasing 3.837.064 27.733.974 3.724.824 26.637.362

Commercial paper (i) 26.277.365 - 3.490.345 -

Public bonds 11.112.494 91.061.976 5.324.915 99.144.382

Total 89.810.778 136.180.103 63.131.096 152.478.360

(i) OnMarch23,2016, May20,2016,June28,2016,July14,2016andSeptember12,2016,October7,2016andNovember25,2016,Enjoy

S.A. registered series 13A, 14A, 15A, 16A, 17A, 1B, 2B and 3B, 4B, 5B, 6B, 1C, 2C and 3C of its negotiable instruments. At December 31,

2016, the balance payable is ThCLP$ 27,400,000.-.

On 17 June 2010, Enjoy S.A. registered 2 bond tranches, one to 10

years and the other to 30 years, for a sum up to UF 3.000.000,

each, registered in the Securities Register of the Chilean Securities

and Insurance Commission with No. 637 and 638, respectively.

On 24 June 2010, Enjoy S.A. made the first placement in the local

market of bearer bonds, charged to the aforementioned lines,

whose most relevant conditions were as follows:

i) Series A Bonds, issued under bond line No. 637, for the total

amount of UF 1.000.000 maturing on 20 June 2015, in which

a placement rate of 3,94% was obtained (the last repayment

installment was paid on 20 June 2015).

ii) Series C bonds, issued under bond line No. 638, for the total

amount of UF 2,000,000 maturing on 20 June 2024, in

which a placement rate of 4,59% was obtained.

Funds from the placement of the series A and C bonds mentioned

above were used to pay liabilities, including the syndicated loan

drawn by Enjoy S.A with National Banks, in 2009.

The company has purchased real estate, furniture and office

furniture through financial leasing contracts, registering their

value as “Leased Assets”, determined based on a monthly

interest rate. The difference between the nominal value of the

contracts and their present value is recorded under “deferred

interest in leasing”, account that is netted with the account “lease

obligations” in liabilities.

On 3 September 2010, Enjoy S.A. made a second placement in the

local market of bearer bonds, charged to the above lines, whose

most relevant conditions were as follows:

i) Series D Bonds issued under Bond Line No. 637, for the total

amount of ThCh$ 21.300.000 Pesos maturing on 20 June

2015, in which a placement rate of 7.15% CLP was obtained

(the last repayment installment and interests was paid on 20

June 2015).

ii) Series E Bonds issued under Bond Line No. 638, for the total

amount of UF 1.000.000 maturing on 20 June 2024, in which

a placement rate of 4.27% UF was obtained.

The proceeds of the placement were used to refinance liabilities.

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On 14 June 2013 and under the credit assignment of the direct

subsidiary Enjoy Gestión Ltda., Inmobiliaria Rinconada S.A.

subscribed to the order of Asesorias y Valores Euroamerica

Ltda. that later assigned twelve Promissory Notes to: Moneda

Latinoamerica Local Debt Investment Fund, Moneda absolute

return AFP Inversión Fund, Penta Vida Cía. de Seguros de Vida

S.A., Euroamérica Seguros de Vida S.A., in amounts that represent

the total amount of the credit. Payment terms are as follows:

i) The capital will be readjusted according to the UF value from

14 June 2013 and will be amortized once on June 14, 2021,

ii) The capital bears interest that is calculated each year

according to a fixed annual rate, over UF 6.25%, paid

quarterly, maturing from 14 September 2013.

The proceeds of the assignment of this loan were used to:

i) Pay short-term liabilities incurred to finance the acquisition

of and investment in the casino of Chiloe and Rinconada

respectively

ii) Make investments in assets for development in due course.

On 13 March 2014, Enjoy S.A., Inmobiliaria Rinconada S.A. and

creditors of the promissory notes agreed to amend the Put Option

Contracts regarding:

(i) The interest rate applicable to the price at which Enjoy must

purchase the Notes should the PUT option be exercised;

which is 6.25%.

(ii) The collaterals that guard against said primary liabilities,

adding new collaterals;

(iii) Adjusting the financial covenants set in the Put Option

Agreements, the current and valid ones between and Enjoy

SA and bondholders;

(iv) Changing development chart of the notes, incorporating

quarterly amortization from 31 July 2014 with a share of

10% of the initial capital, the following three representative

installments of 6.03% of the capital, and 25 equal installments,

each for 2.8764% of the principal amount, the last one

maturing 14 June 2021;

(v) The conditions under which the Notes will be converted into

corporate bonds issued by Enjoy, pursuant to Title XVI of

Law 18,045;

(vi) A single payment made to the creditors, equivalent to 1% of

the outstanding principal of the notes.

On 30 July 2014, corporate bonds issued by Enjoy were registered

in the Chilean Securities and Insurance Commission under No.

784, for a fixed amount of UF 1.658.500 maturing on 14 June

2021, and identified under account name BENJO-F (the “Bonds”).

On the same day, the company made the placement in the local

market of all bonds. The obligation to pay the bond placement

price was offset by the acquisition of 12 promissory notes signed

by Inmobiliaria Rinconada S.A., a subsidiary of Enjoy, as part of

the operation performed by Asesorías y Valores Euroamérica on

14 June 2013.

On 14 October 2014, the subsidiary Inmobiliaria Integral Project

Antofagasta S.A. entered into a real estate financial leasing

contract with Banco de Chile and Banco de Crédito e Inversiones.

The subsidiary terminated the leasing contract with Banco de

Chile and Banco de Crédito e Inversiones, by early exercise of

the option to purchase provided for in the contract for 680,498

Indexed Units. After this, the company sold the property to such

banks at a price of 1,328,000 Indexed Units. Together with these

contracts, it signed a new leasing contract for UF 1.328.000,

maturing in November 2023 and an associated rate of TAB UF of

90 days, plus an applicable margin of 2.5%. This funding will be

repaid in 108 equal installments from November 2014.

On 17 October 2014, a financial contract was entered into - through

a syndicated loan - with Banco Bilbao Vizcaya Argentaria, Chile;

Banco Santander of Chile; Banco del Estado de Chile; Scotiabank

Chile and Tanner Financial Services S.A., for an amount of

ThCh$44.200.000, payable in 13 successive quarterly installments

starting October 2015. The contracted interest rate was 90 TAB

plus a spread (or applicable margin) within a range from 2.5% to

3.5%, according to the company’s financial indicators.

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b) Exploited borrowing costs

At 31 December 2016 and 2015, according to what is required by IAS 23, there have been no capitalized borrowing costs.

c) Maturity profile and credit terms at the end of each balance sheet

At 31 December 2016

Name of Creditor

Tax Payer

ID Creditor

Entity

Country

of

Creditor

Entity

Description

of Currency

Up to three

months

From three

to twelve

months

Total

Current

Total

Current

From three

to five

years

Over five

years

Total Non-

CurrentTotal Debt

Total

NominalInterest rate

Timing of

payment of

principal

and interest

ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Effective nominal

Bank loans:

Banco de Chile 97.004.000-5 Chile CLP 500.000 - 500.000 - - - - 500.000 500.000 9,24% 9,24% At maturity

Banco BCI 97.006.000-6 Chile CLP 547.210 - 547.210 - - - - 547.210 547.210 9,24% 9,24% At maturity

Banco Security 97.053.000-2 Chile CLP 386.712 1.125.000 1.511.712 750.000 - - 750.000 2.261.712 2.261.712 7,13% 7,13% Quarterly

Banco Security 97.053.000-2 Chile CLP 2.784.861 - 2.784.861 - - - - 2.784.861 2.784.861 9,00% 9,00% At maturity

Banco BBVA 97.032.000-8 Chile CLP 988.049 4.937.861 5.925.910 - - - - 5.925.910 5.925.910 7,69% 7,69% At maturity

Banco Santander 97.036.000-K Chile CLP 1.586.720 8.756.630 10.343.350 - - - - 10.343.350 10.343.350 7,38% 7,38% At maturity

Banco

Internacional 97.011.000-3 Chile CLP 477.279 1.444.940 1.922.219 3.336.833 - - 3.336.833 5.259.052 5.259.052 7,50% 7,50% Monthly

Banco

Internacional 97.011.000-3 Chile CLP 1.002.600 2.005.360 3.007.960 - - - - 3.007.960 3.007.960 7,96% 7,96% At maturity

Banco Consorcio 99.500.410-0 Chile CLP 5.540.852 - 5.540.852 - - - - 5.540.852 5.540.852 7,19% 7,19% At maturity

Banco BBVA 97.032.000-8 Chile CLP 1.294.523 3.466.409 4.760.932 4.580.969 - - 4.580.969 9.341.901 9.508.490 9,38% 7,03% Quarterly

Banco Santander 97.036.000-K Chile CLP 835.171 2.236.372 3.071.543 2.955.351 - - 2.955.351 6.026.894 6.134.687 8,06% 7,03% Quarterly

Banco

Internacional (i)97.011.000-3 Chile CLP 734.464 1.966.469 2.700.933 2.596.465 - - 2.596.465 5.297.398 5.400.291 8,16% 7,03% Quarterly

Banco Estado 97.030.000-7 Chile CLP 501.116 1.341.887 1.843.003 1.773.562 - - 1.773.562 3.616.565 3.680.261 8,16% 7,03% Quarterly

Scotiabank 97.018.000-1 Chile CLP 392.933 1.052.222 1.445.155 1.390.973 - - 1.390.973 2.836.128 2.885.125 8,03% 7,03% Quarterly

Banco ITAU 76.745.030-K Uruguay USD - 2.678.215 2.678.215 - - - - 2.678.215 2.678.215 4,50% 4,50% At maturity

Total 17.572.490 31.011.365 48.583.855 17.384.153 - - 17.384.153 65.968.008 66.457.976

Financial leasing:

Banco de Chile 97.004.000-5 Chile CLF 469.324 1.317.086 1.786.410 3.725.036 4.058.038 4.228.953 12.012.027 13.798.437 13.893.060 4,32% 4,32% Monthly

Banco BCI 97.006.000-6 Chile CLF 469.324 1.317.086 1.786.410 3.725.036 4.058.038 4.228.953 12.012.027 13.798.437 13.893.060 4,32% 4,32% Monthly

Banco Security 97.053.000-2 Chile CLF 67.556 196.688 264.244 557.692 609.502 2.542.726 3.709.920 3.974.164 3.974.164 4,45% 4,45% Monthly

Total 1.006.204 2.830.860 3.837.064 8.007.764 8.725.578 11.000.632 27.733.974 31.571.038 31.760.284

Commercial

paper:

Chilean

publicly-traded

commercial

paper

CLP 8.437.797 17.839.568 26.277.365 - - - - 26.277.365 27.400.000 7,01% 7,01% At maturity

Total 8.437.797 17.839.568 26.277.365 - - - - 26.277.365 27.400.000

Obligations with

the public, Bond:

Serie C Chile CLF - 3.832.719 3.832.719 14.876.289 14.876.289 18.595.361 48.347.939 52.180.658 52.764.681 4,72% 4,75% Biyearly

Serie E Chile CLF - 1.912.780 1.912.780 7.438.144 7.438.144 9.297.680 24.173.968 26.086.748 26.378.762 4,30% 4,25% Biyearly

Serie F Chile CLF 1.394.121 3.972.874 5.366.995 10.594.327 7.945.742 - 18.540.069 23.907.064 25.208.487 6,80% 6,25% Quarterly

Total 1.394.121 9.718.373 11.112.494 32.908.760 30.260.175 27.893.041 91.061.976 102.174.470 104.351.930

Total 28.410.612 61.400.166 89.810.778 58.300.677 38.985.753 38.893.673 136.180.103 225.990.881 229.970.190

(i) With date march 31, 2016, Tanner Servicios Financieros ceded a the Banco Internacional the liabilities financial that Enjoy S.A. had with

them.

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At December 31, 2015

Name of Creditor

Tax Payer ID Creditor

Entity

Country of

Creditor Entity

Description of Currency

Up to three months

From three to twelve months

Total Current

Total Current

From three to five years

Over five years

Total Non-Current

Total DebtTotal

NominalInterest rate

Timing of payment of

principal and

interest

ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Effective nominal

Bank loans:

Banco de Chile

97.004.000-5 Chile CLP 1.735.341 - 1.735.341 - - - - 1.735.341 1.735.341 8,52% 8,52% At maturity

Banco Corpbanca

97.023.000-9 Chile CLP - - - - - - - - - 6,69% 4,56% Biyearly

Banco Corpbanca

97.023.000-9 Chile CLP - - - - - - - - - 0,00% 0,00% Monthly

Banco Corpbanca

97.023.000-9 Chile CLP 2.484.842 - 2.484.842 - - - - 2.484.842 2.484.842 8,40% 8,40% At maturity

Banco BCI 97.006.000-6 Chile CLP 1.789.775 - 1.789.775 - - - - 1.789.775 1.789.775 7,99% 7,99% At maturity

Banco Security

97.053.000-2 Chile CLP 2.261.938 407.258 2.669.196 - - - - 2.669.196 2.669.196 9,00% 9,00% At maturity

Banco BBVA 97.032.000-8 Chile CLP 4.970.085 - 4.970.085 - - - - 4.970.085 4.970.085 8,01% 8,01% At maturity

Banco Santander

97.036.000-K Chile CLP 5.683.741 3.054.810 8.738.551 - - - - 8.738.551 8.738.551 7,48% 7,48% At maturity

Banco ITAU 76.745.030-K Chile CLP 2.077.802 - 2.077.802 - - - - 2.077.802 2.077.802 7,20% 7,20% At maturity

Banco Consorcio

99.500.410-0 Chile CLP 3.845.687 1.230.935 5.076.622 - - - - 5.076.622 5.076.622 7,35% 7,35% At maturity

Tanner Servicios Financieros

96.667.560-8 Chile CLP 2.018.200 - 2.018.200 - - - - 2.018.200 2.018.200 8,40% 8,40% At maturity

Banco BBVA 97.032.000-8 Chile CLP 1.371.793 3.447.026 4.818.819 9.196.551 - - 9.196.551 14.015.370 14.274.655 9,38% 7,51% Quarterly

Banco Santander

97.036.000-K Chile CLP 885.014 2.223.831 3.108.845 5.933.107 - - 5.933.107 9.041.952 9.209.724 8,06% 7,51% Quarterly

Tanner Servicios Financieros

96.667.560-8 Chile CLP 778.029 1.954.497 2.732.526 5.214.536 - - 5.214.536 7.947.062 8.107.208 8,16% 7,51% Quarterly

Banco Estado 97.030.000-7 Chile CLP 531.054 1.334.475 1.865.529 3.560.337 - - 3.560.337 5.425.866 5.525.004 8,16% 7,51% Quarterly

Scotiabank 97.018.000-1 Chile CLP 416.439 1.046.521 1.462.960 2.792.085 - - 2.792.085 4.255.045 4.331.305 8,03% 7,51% Quarterly

Otros - Chile CLP 5.041.919 - 5.041.919 - - - - 5.041.919 5.041.919 12,67% 12,67% At maturity

Total 35.891.659 14.699.353 50.591.012 26.696.616 - - 26.696.616 77.287.628 78.050.229

Financial leasing:

Banco de Chile

97.004.000-5 Chile CLF 62.844 143.092 205.936 - - - - 205.936 205.936 2,27% 2,27% Monthly

Banco de Chile

97.004.000-5 Chile CLF 455.572 1.303.872 1.759.444 3.605.215 3.800.170 5.913.296 13.318.681 15.078.125 15.184.639 2,64% 2,64% Monthly

Banco Corpbanca

97.023.000-9 Chile CLP - - - - - - - - - 1,33% 1,33% Monthly

Banco BCI 97.006.000-6 Chile CLP - - - - - - - - - 0,00% 0,00% Monthly

Banco BCI 97.006.000-6 Chile CLF 455.572 1.303.872 1.759.444 3.605.215 3.800.170 5.913.296 13.318.681 15.078.125 15.184.639 2,64% 2,64% Monthly

Banco Security

97.053.000-2 Chile CLP - - - - - - - - - 0,00% 0,00% Monthly

Total 973.988 2.750.836 3.724.824 7.210.430 7.600.340 11.826.592 26.637.362 30.362.186 30.575.214

Commercial paper:

Chilean publicly-traded commercial paper

CLP 3.490.345 - 3.490.345 - - - - 3.490.345 3.500.000 7,20% 7,20% At maturity

Total 3.490.345 - 3.490.345 - - - - 3.490.345 3.500.000

Obligations with the public, Bond:

Serie A Chile CLF - - - - - - - - - 4,23% 4,00% Biyearly

Serie C Chile CLF 66.846 - 66.846 10.892.437 14.462.276 25.308.983 50.663.696 50.730.542 51.325.026 4,72% 4,75% Biyearly

Serie D Chile CLP - - - - - - - - - 6,98% 7,00% Biyearly

Serie E Chile CLF 29.942 - 29.942 5.446.218 7.231.138 12.654.492 25.331.848 25.361.790 25.659.032 4,30% 4,25% Biyearly

Serie F Chile CLF 1.369.989 3.858.139 5.228.127 10.288.370 10.288.373 2.572.095 23.148.838 28.376.965 29.970.651 6,80% 6,25% Quarterly

Total 1.466.777 3.858.139 5.324.915 26.627.025 31.981.787 40.535.570 99.144.382 104.469.297 106.954.709

Total 41.822.769 21.308.328 63.131.096 60.534.071 39.582.127 52.362.162 152.478.360 215.609.456 219.080.152

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NOTE 23 FINANCIAL INSTRUMENTS

Financial derivative instruments of Enjoy S.A. are mainly related

to operations contracted with the intention of covering the

exchange rate volatility arising from financing for future project

development operations.

The main assumptions used in the valuation model of derivatives

are:

a) Market assumptions such as spot prices and other price

projections, credit risk (own and counterparty) and rates

b) Discount rate as risk free rate, counterparty and sovereign

spread (based on risk profiles and information available in

the market),

c) Additionally, the model variables such as volatilities

and spread are incorporated using observable market

information.

The effective portion of changes in fair value of derivatives that

are designated and qualified as cash flow hedges are recognized

in equity attributable to owners of the parent in the item Other

Reserves. The earning or loss relating to the ineffective portion is

recognized immediately in the income statement in the Financial

Costs.

When a hedging instrument expires, is sold or does not meet

the requirements for hedge accounting, any cumulative gain or

loss in the item Other reserves to that moment or at the time the

forecasted transaction is expected to not occur, the cumulative

earning or loss is recognized immediately in the income statement

in the item Financial Costs.

DERIVATIVE VALUATION METHODOLOGY

The portfolio of derivative instruments at 31 December 2016 is as

follows:

a) Hedge Instruments for Cash Flow Hedge

On 9 April 2015, two swap contracts were signed with the

following characteristics:

a. Swap contract related to Series C bond, in the amount of UF

2.000.000, starting on 20 December 2014, expiry date 20

June 2024, at a fixed rate agreed in pesos of 8.20%.

b. Swap contract related to Series E bond, in the amount of UF

1.000.000, starting on 20 December 2014, expiry date 20

June 2024, at a fixed rate agreed in pesos of 7.66%.

The amounts are classified in the item Other financial assets non-

current (see note 14).

a.1) Other background information on cash flow hedges

The following table represents discounted and undiscounted cash flows covered by the hedging derivatives:

At December 31, 2016:

Company Type of Derivative Institution Hedged item Opening ClosingNotional ThCh$

Cash flow

ThCh$

Cash flow (FV)

ThCh$

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 12-20-2016 06-20-2017 73.953.990 2.965.555 2.921.648

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 06-20-2017 12-20-2017 73.953.990 8.247.983 8.007.144

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 12-20-2017 06-20-2018 68.671.562 8.036.157 7.686.798

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 06-20-2018 12-20-2018 63.389.134 7.824.332 7.364.118

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 12-20-2018 06-20-2019 58.106.706 7.612.507 7.044.237

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 06-20-2019 12-20-2019 52.824.279 7.400.681 6.727.897

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 12-20-2019 06-20-2020 47.541.851 7.188.856 6.411.393

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 06-20-2020 12-20-2020 42.259.423 6.977.031 6.101.107

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 12-20-2020 06-20-2021 36.976.995 6.765.205 5.788.817

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 06-20-2021 12-20-2021 31.694.567 6.553.380 5.480.574

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 12-20-2021 06-20-2022 26.412.139 6.341.555 5.184.208

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 06-20-2022 12-20-2022 21.129.711 6.129.729 4.894.184

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 12-20-2022 06-20-2023 15.847.284 5.917.904 4.610.869

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 06-20-2023 12-20-2023 10.564.856 5.706.079 4.334.066

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 12-20-2023 06-20-2024 5.282.428 5.494.253 4.069.062

Total 99.161.207 86.626.123

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At December 31, 2015:

Company Type of Derivative Institution Hedged item Opening ClosingNotional ThCh$

Cash flow

ThCh$

Cash flow (FV)

ThCh$

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 12-20-2015 06-20-2016 73.953.990 2.965.555 2.913.957

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 06-20-2016 12-20-2016 73.953.990 2.965.555 2.857.094

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 12-20-2016 06-20-2017 73.953.990 2.965.555 2.798.678

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 06-20-2017 12-20-2017 73.953.990 8.247.983 7.614.873

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 12-20-2017 06-20-2018 68.671.562 8.036.157 7.258.483

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 06-20-2018 12-20-2018 63.389.134 7.824.332 6.909.067

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 12-20-2018 06-20-2019 58.106.706 7.612.507 6.567.679

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 06-20-2019 12-20-2019 52.824.279 7.400.681 6.233.392

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 12-20-2019 06-22-2020 47.541.851 7.188.856 5.910.631

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 06-20-2020 12-21-2020 42.259.423 6.977.031 5.599.625

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 12-20-2020 06-21-2021 36.976.995 6.765.205 5.297.230

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 06-20-2021 12-20-2021 31.694.567 6.553.380 5.003.879

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 12-20-2021 06-20-2020 26.412.139 6.341.555 4.720.787

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 06-20-2022 12-20-2020 21.129.711 6.129.729 4.446.331

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 12-20-2022 06-20-2023 15.847.284 5.917.904 4.179.531

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 06-20-2023 12-20-2023 10.564.856 5.706.079 3.921.034

Enjoy S.A. Cross Currency Swap Euroamérica Cash flows 12-202023 6/20/2024 5.282.428 5.494.253 3.672.977

Total 105.092.317 85.905.246

For more details on the maturity of the debt, see Note No. 22 c).

The company has not made financial cash flow hedges for highly

probable transactions that have not been materialized.

The recognized amount representing the change in fair value of

derivative instruments in the item Other Reserves at 31 December

2016 and 2015 is as follows:

12/31/2016 12/31/2015

ThCh$ ThCh$

Amounts recognized in other reserves (775.172) (890.326)

b) Call Options

Corresponds to the fair value for the option to acquire 36.8% of

Inversiones Inmobiliarias Enjoy S.p.A. The valuation inputs of this

option are detailed in note 14, letters, a) and b).

c) Fair value hierarchy of financial instruments

Financial instruments are classified according to the following

hierarchy:

Level 1: Quoted price in active market for identical assets and

liabilities.

Level 2: Inputs other than quoted prices included in Level 1 that

are observable for the asset or liability, either directly (i.e. as

prices) or indirectly (i.e. derived from prices), and,

Level 3: Inputs for the asset or liability that are not based on

observable market data.

The table below presents certain financial assets and liabilities

measured at fair value.

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i. 31 December 2016:

Level 1 Level 2 Level 3 Total

ThCh$ ThCh$ ThCh$ ThCh$

Assets

Short term investments 1.053.441 - - 1.053.441

Call option (FIP) - - 9.750.157 9.750.157

Currency Swap 4.285.894 - 4.285.894

Total assets 1.053.441 4.285.894 9.750.157 15.089.492

ii. 31 December 2015:

Level 1 Level 2 Level 3 Total

ThCh$ ThCh$ ThCh$ ThCh$

Assets

Short term investments 480.701 - - 480.701

Call option (Baluma and FIP) - - 49.915.412 49.915.412

Currency Swap 1.974.987 - 1.974.987

Total assets 480.701 1.974.987 49.915.412 52.371.100

There were no transfers between Level 1 and Level 2 during the year. In accordance with Company’s policy transfers between levels are

deemed to have occurred at the date of the event that caused the transfer.

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d) Fair value of assets and liabilities measured recurrently at fair value

Certain of the assets and liabilities of the company are measured at fair value at the end of each close. Below is the information regarding

how fair values of assets and financial liabilities are determined (specifically the valuation techniques and inputs used):

Financial asset/ Financial liability

Fair value at:Hierarchy of

fair valueValuation technique (s) and key input (s)

Significant non-

observable inputs

Relationship of non-observable

input at fair value

12-31-2016 12-31-2015

ThCh$ ThCh$

1) Swap contracts in Foreign currency, cash flow hedging instrument (see note 14)

Asset - ThCh$ 4.285.894

Asset - ThCh$ 1.974.987

Category 2

Discounted cash flow. The future cash flows are estimated based on future exchange rates (from types of observable change at the end of reporting period) and forward exchange contracts, discounted at a rate that reflects the credit risk of counterparties.

N/A N/A

2) Baluma Call option (see note 14)

Asset - ThCh$ 0

Asset - ThCh$ 45.440.046

Category 3

To value the option, the Company used the Binomial Tree methodology. The Binomial Tree methodology includes the exercise of the option within a time frame, providing value ranges for the option.The management performs studies of independent third parties who consider assumptions such as determining the risk- free rate and the volatility of the underlying Asset.

See next chart

See next chart

3) FIP Call option (see note 14)

Asset - ThCh$ 9.750.157

Asset - ThCh$ 4.475.366

Category 3

To value the CALL option, the Company used the Binomial Tree methodology. The Binomial Tree methodology includes the exercise of the option within a time frame, providing value ranges for the option. The management performs studies of independent third parties who consider assumptions such asdetermining the risk-free rate and the volatility of the underlying Asset.

See next chart

See next chart

The following information is relevant for the call option shares of Baluma S.A. categorized under Level 3 of the fair value hierarchy

measurement:

Valuation Technique

Non-observable significant inputs Sensitivity

Binomial Trees

The underlying asset corresponds to the economic value of Baluma S.A., which is determined using a model of free cash flow discounted at a WACC rate. The cash flow projection considers the following assumptions:a) Expected growth in income due to the economic growth of the location of customers visiting the asset.b) Cost efficiencies to be captured in the coming years mainly to the reinvestment made by each customer.c) WACC is determined for purposes of discounting cash flows, considering the industry beta, the risk-free rate, country risk and cost of debt.As of September 30, 2016, the value of the underlying asset equaled USD 429 million.

Changes in 1% of the value of the underlying asset, means that the value of the call option is modified by 3.4%.

EBITDA volatility, , the valuation model of the purchase option requires the implied volatility of the underlying asset to value.The volatility of EBITDA for the last seven years was considered to calculate the CALL option of Enjoy in Baluma for the period September 30, 2016, considering the volatility of EBITDA for the last seven years.

If the volatility increases by 200 percentage points, the value of the CALL option changes by 0.8%.

Credit spread: the last credit transaction with the bank market was considered as the representative spread for Enjoy .A.

Changes in the spread of 0.1 percentage points implies a 1.4% change in the value of the CALL option.

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The following information is relevant for the buy option of FIP shares categorized at level 3 of the measurement hierarchy at fair value:

Valuation Technique

Non-observable significant inputs Sensitivity

Binomial Trees

Underlying asset is the economic value of the equity of Inversiones Inmobiliarias Enjoy Spa., which is the result of the valuation of real estate assets and liabilities at fair value. For the fair value of assets, valuation was performed using the income approach, which means projecting the leasing flows at present value, charged according to leasing fees, being the main assumptions:

a) Flows growth are projected throughout the useful life of assets, and the 1% increases in the moment of it’s renewal, in the case of municipal casinos, the probability of renewal of these leasing contracts is considered.b) It considers disbursements for maintenance, property taxes and administrative costs.c) WACC is determined to discount cash flows and it is developed considering the beta of the real estate industry in Chile, the risk-free rate, country risk and cost of debt.d) Financial debt and related businesses of the company are valued at book value. In addition, as certain assets of this company guarantee debts held by Enjoy S.A.; an insurance premium of such debt is considered in the calculation of the company assets.

As of 31 December 2016, the value of the underlying asset amounted to 3.3 million Indexed Units.

With variations of 5% in value of the underlying asset, it means that the value of the call option varies over 10% and 16%.

Volatility, the valuation model of the call option requires the implied volatility of the underlying asset to value as input.Prices of real estate assets in Chile were considered, specifically the Housing Price Index from 2004 to 2016, published by the Chilean Chamber of Construction.

If volatility increases by 0.68 percentage points, the value of the call option changes by 1.5%

Credit spread the last credit transaction with the banking market for Enjoy S.A. was considered as representative spread.

In the presence of changes in 50 p.p. of the credit spread, the call option is modified by 0.1% its value.

Fair value measurements and valuation processes

In estimating the fair value of an asset or a liability, the Group uses market-observable data to the extent it is available.Where Level 1

inputs are not available, the Group engages third party qualified valuers to perform the valuation.

The Management works closely with the qualified external valuers to establish the appropriate valuation techniques and inputs to the

model.

Information about the valuation techniques and inputs used in determining the fair value of various assets are disclosed above.

e) Classification of financial assets and libilities by nature and category

The detail of the financial assets, classified by nature and category, as of December 31, 2016 and 2015, is the following:

12/31/2016

Trading securitiesLoans and accounts

receivableHedge derivatives Total

ThCh$ ThCh$ ThCh$ ThCh$

Cash and cash equivalent 1.053.441 40.536.142 - 41.589.583

Trade debtors and other accounts receivable - 37.440.928 - 37.440.928

Accounts receivable from related parties - 1.814.993 - 1.814.993

Total current assets 1.053.441 79.792.063 - 80.845.504

Other financial assets, non-current 9.760.086 47.612 4.285.894 14.093.592

Accounts receivable from related parties, non-current - 637.139 - 637.139

Total non-current assets 9.760.086 684.751 4.285.894 14.730.731

Total 10.813.527 80.476.814 4.285.894 95.576.235

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12/31/2015

Trading securitiesLoans and accounts

receivableHedge derivatives Total

ThCh$ ThCh$ ThCh$ ThCh$

Cash and cash equivalent 480.701 32.537.273 - 33.017.974

Trade debtors and other accounts receivable - 37.916.200 - 37.916.200

Accounts receivable from related parties - 2.029.101 - 2.029.101

Total corriente 480.701 72.482.574 - 72.963.275

Other financial assets, non-current 49.925.948 44.662 1.974.987 51.945.597

Accounts receivable from related parties, non-current - 637.139 - 637.139

Total no corriente 49.925.948 681.801 1.974.987 52.582.736

Total 50.406.649 73.164.375 1.974.987 125.546.011

The detail of the financial instruments of liabilities, classified by nature and category, as of December 31, 2016 and 2015, is the following:

12/31/2016

Loans and accounts payable

Hedge derivatives Total

ThCh$ ThCh$ ThCh$

Other current financial liabilities 89.810.778 - 89.810.778

Trade payables and other payables 43.569.001 - 43.569.001

Accounts payable to related parties, current 130.990.432 - 130.990.432

Total current liabilities 264.370.211 - 264.370.211

Other financial liabilities, non-current 136.180.103 - 136.180.103

Total non-current liabilities 136.180.103 - 136.180.103

Total 400.550.314 - 400.550.314

12/31/2015

Loans and accounts payable

Hedge derivatives Total

ThCh$ ThCh$ ThCh$

Other current financial liabilities 63.131.096 - 63.131.096

Trade payables and other payables 48.634.442 - 48.634.442

Accounts payable to related parties, current 7.158.257 - 7.158.257

Total current liabilities 118.923.795 - 118.923.795

Other financial liabilities, non-current 152.478.360 - 152.478.360

Accounts payable to related parties, non-current 132.365.293 - 132.365.293

Total non-current liabilities 284.843.653 - 284.843.653

Total 403.767.448 - 403.767.448 F

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NOTE 24 TRADE ACCOUNTS PAYABLE AND OTHER ACCOUNTS PAYABLE

At 31 December 2016 and 2015, the breakdown of this item is the following:

Items 12/31/2016 12/31/2015

ThCh$ ThCh$

Debts due to purchases or services received 17.987.772 20.095.488

Accounts payable related to gaming prizes 3.664.583 3.483.183

Withholdings to employees and pension obligations 6.171.120 6.566.410

Provision of minimum dividend 417.880 1.391.113

Other accounts payable 15.327.646 17.098.248

Total 43.569.001 48.634.442

Obligations for purchases and services received, relate mainly to acquisitions to domestic and foreign suppliers, These obligations do not

bear interest and are usually paid 30 days from the acquisition and/or provision of services,

NOTE 25 CURRENT PROVISIONS FOR EMPLOYEE BENEFITS

At 31 December 2016 and 2015, this item is broken down as follows:

12/31/2016 12/31/2015

ThCh$ ThCh$

Management bonus for executives 267.411 944.631

Total 267.411 944.631

This provision corresponds to performance bonus associated with the remuneration scheme of the executive team based on compliance

with a predefined set of indicators and objectives, It is paid in March of each year,

NOTE 26 OTHER FINANCIAL LIABILITIES, CURRENT AND NON-CURRENT

As of 31 December 2016 and 2015, this item is broken down as follows:

Current Non-current

12/31/2016 12/31/2015 12/31/2016 12/31/2015

ThCh$ ThCh$ ThCh$ ThCh$

Income collected in advance (i) 10.833.559 10.308.135 - -

Deferred income loyalty program 733.422 909.920 - -

Other financial liabilities 24.398 64.667 - -

Total 11.591.379 11.282.722 - -

i. It includes deposits made by customers of Enjoy Conrad Punta del Este.

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NOTE 27 EQUITY

Changes in equity are as follows:

a) SUBSCRIBED AND PAID IN CAPITAL

The authorized, subscribed and paid in capital of the company

at 31 December 2014 is ThCh$ 119.444.842 with 2.357.459.928

divided into nominative shares and registered shares. Share in the

company have no par value, all the shares belong to the same

class and series and series and confer the same rights to their

owners.

a) On 28 April 2009 in a Special Shareholders Board Meeting of

Enjoy S.A., the following was agreed:

a,1) Rescinding the capital increase agreement of ThCh$

8.976.000 equivalent to 352.900.000 cash shares adopted in the

Special Shareholders Board Meeting dated 6 September 2008.

a.2) Share capital Increase in ThCh$ 24.994.125 through the

issuance of 825.160.942 shares, with ThCh$ 11.000.000 as follows:

a.2.1) Inversiones Cumbres S.A. (today, Inversiones Cumbres Ltda.),

provided through credit transfer, ThCh$ 1.444.658 equivalent to

47,694,218 shares, representing 18.4079% participation in Enjoy S.

A.

a.2.2) Inversiones e Inmobiliaria Almonacid Ltda., provided

through credit transfer, ThCh$ 9.005.338 equivalent to

297.303.987 shares, representing 76.5921% participation in Enjoy

S.A.

a.2.3) Pier-Paolo Zaccarelli Fasce, provided through credit

transfer, ThCh$ 550.004 equivalent to 18.157.955 shares,

representing 5% participation in Enjoy S.A.

a.4) ThCh$ 13.994.125 equivalent to 462.004.782 subscribed and

paid shares, in a period of 3 years.

On 23 September 2009, 462.004,.782 shares in custody were

transferred to Larrain Vial S.A. Corredora de Bolsa, as an equity

market broker.

On 8 July 2009, Enjoy S,A, of placed 30% of the total of company

shares in the Stock Exchange, collecting an amount of ThCh$

23.100.000 set to strengthen its financial position.

On 28 April 2010, a special Shareholders Board Meeting was held

by Enjoy S.A., whereby they agreed to adopt a Capital Increase of

ThCh$ $17.000.000 through the issuance of 603.264.726 shares.

On 8 October 2010, the issuance of 603.264.726 ordinary,

nominative, single-series cash shares were registered under No,

905 for a total amount of ThCh$17.000.000 in the Securities

Registry, The Board agreed to place 242,.857.142 nominal, ordinary

shares of a single series and without nominal value, which will be

offered preferentially to shareholders.

The capital increase for the aforementioned number of shares

above amounted ThCh$ 16.999.999, this issuance was offered

preferentially to the Company shareholders who had the right to

subscribe to 0.1576978104 of new shares per each owned share

registered in the Shareholders Registry within the deadline under

the Law, until 19 November 2010.

Of the shares placed, i.e. 242.857.142, were subscribed and

239.417.428 paid, collecting ThCh$ 16.759.219, out of which the

controlling shareholders subscribed and paid 66,5% of the placed

shares, corresponding to 100% of their preferential option.

In the session on 25 March 2011, the Board of Enjoy S.A. agreed

to allocate 3.439.714 of unsubscribed and unpaid shares by the

shareholders in the preferential option period for future executive

compensation programs.

On 26 September, 2011 the company executives subscribed and

paid 3.438.685 shares equivalent to ThCh$ 343.868, according to

the executive compensation program.

On 12 November 2012 the Special Company Shareholders Board

Meeting was held, agreeing to the following, among other matters:

a) Rescinding of the Company capital in unsubscribed portion, by

cancelling 360.408.613 shares of the company’s share, issued

to increase capital as agreed in the Special Shareholders Board

Meeting dated at 29 April 2010, that were outstanding, being

issued, unsubscribed and unpaid shares.

b) Increase Company capital by issuing 950.000.000 shares,

agreeing to place them on the date or dates set by the Board.

On 17 December 2012, the Board agreed to place 600.000.006

Company shares at $115 per share. For the first placement shares,

the Company shareholders had a right to subscribe to 0.33653565

new shares for each old share.

Of the shares placed, this is 600.000.006, 320.658.632, were

subscribed and paid, collecting ThCh$ 36.875.743, of which the

controlling shareholders subscribed and paid 50,1% of the placed

shares corresponding to 40.3% of their preferential option.

On 31 May 2013, Harrahs International Holding Company Inc.

(Company owner of the remaining 55% of Baluma S.A.), subscribed

and paid 107.229.242 shares, equivalent to ThCh$ 12.331.363,

corresponding to 4.5 % of participation in Enjoy S.A.

On 14 August 2014, 146.699.999 shares were auctioned,

corresponding to the 6,2% of the total company capital after their

placement, whose preferential optinon ended on 3 February 2013,

collecting ThCh$ 9.535.500.

On 26 November 2015, the CEO announced a reduction the

company’s share capital of the company with full rights to what

was actually subscribed and paid, 2.357.459.928, shares, i,e,, a

reduction in company share capital by 375.412.127 subscribed

and unpaid shares in the 3-year period agreed by the special

Shareholders Meeting on 12 November 2012. This decrease had

no effect on the paid capital recorded in the company’s balance.

On September 20, 2016, an Extraordinary Shareholders’ Meeting

of Enjoy S.A. Was held in which it was agreed to increase the

capital stock in CLP$ 119.444.841,662 divided into 2.357.459.928

ordinary, registered, no-par value shares of a single series for

CLP$. 164.996.746.102 divided into 3.008.201.420 ordinary,

registered, no-par value shares of a single series. The 650.741.492

new payment shares are issued without being subscribed or paid.

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a.1) Reconciliation of shares

The following is a reconciliation of the number of outstanding shares at the beginning and end of the accounting periods presented:

Sharesat 31 December 2016 at 31 December 2015

Issued Subscribed and paid Issued Subscribed and paid

Opening balance 2.357.459.928 2.357.459.928 2.732.872.055 2.357.459.928

Increase in capital September 20, 2016 650.741.492 - - -

Decrease of non-subscribed shares - - (375.412.127) -

Closing balance 3.008.201.420 2.357.459.928 2.357.459.928 2.357.459.928

Capital Management

Enjoy S.A. keeps an adequate capital level, so that it can access

the financial banking and securities market, according to the

needs or short and long-term investment requirements, in

order to maximize the company’s value and financial strength.

This optimizes adequate returns to Company shareholders.

Issuance and share placement expenses

As of 31 December 2016 and 2015, the balance held in this item

represents payments directly related to the process of issuance

and placement of shares. Disbursed expenses related to the

placements in the stock market, are recorded as part of the

equity in the item price premium for sale of shares. The expenses

of the last capital increase are recorded in equity, in the item

other reserves, as no premium was recorded in sale of shares

in the latter placement, as stated in the Circular No, 1,736 of the

Superintendency of Securities and Insurance, dated 13 January

2005.

The breakdown of these expenditures related to the last capital

increase at August 2014, at November 2012, at November 2010

and at the opening in the stock exchange dated 8 July 2009, is

as follows:

ItemsSep-14 Nov-12 Nov-10 Jul-09

ThCh$ ThCh$ ThCh$ ThCh$

Commissions for placement and Consultancy 199.276 1.215.528 85.118 417.263

Subscription and registry rights - - 7.374 4.618

Press expenses - - 2.435 37.053

Total 199.276 1.215.528 94.927 458.934

b) OTHER RESERVES

At 31 December 2016 and 2015, the item Other reserves included the following:

Items 12/31/2016 12/31/2015

ThCh$ ThCh$

Foreign exchange gain/loss (b.1) 3.895.045 11.681.035

Equity contribution (9.153.906) (9.153.906)

Other reserves (b.2) (20.894.386) (21.027.920)

Total (26.153.247) (18.500.791)

(i) Includes ThCh$16.772.364 as a result of the assignment of rights received from members of the Sociedad Antonio Martínez y Cía.,

Indicated in Note 1, a Company under common control through its partners.F

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Other reserves include the adjustment for translation differences, other reserves and equity contributions. The latter ones, generated

by the proportional valuation of the investments in subsidiary companies, because these operations are generated between companies

under common control.

b1) Cumulative translation adjustment:

At 31 December 2016 and 2015, the item Translation Adjustment includes the following:

12/31/2016 12/31/2015

ThCh$ ThCh$

Opening balance 11.681.035 98.733

Conversion adjustment of the period (7.785.990) 11.582.302

Total 3.895.045 11.681.035

This corresponds to the economic effects of foreign exchange rate changes on investments held directly and indirectly through companies

Inversiones Enjoy S.p.A and Inversiones Andes Entretención Ltda., which has investments in Argentinean Pesos in Argentinean companies,

Cela S.A. (common control company), Yojne S.A., which has investment in Kunas in the company Croata Casino Grad d.d and in U.S.

Dollars in the Uruguayan company Baluma S.A. and the investment in Colombian Pesos in the company Enjoy Caribe S.p.A., Sucursal

Colombia.

b.2) Other reserves

As of 31 December 2016 and 2015, the Other reserves item includes the following:

12/31/2016 12/31/2015

ThCh$ ThCh$

Opening balance (21.027.920) (5.480.330)

Derivatives 115.154 (1.030.628)

Variation of fair value of PUT option 55% shares Baluma S.A. 29.217 (7.905.134)

Adjustment from change of interest in subsidiary (i) (10.837) (6.611.828)

Total (20.894.386) (21.027.920)

i. Arising from a change in interest percentage in subsidiary Inversiones Enjoy Real S,p,A, due to the entry of a new shareholder, where

Enjoy S.A. maintains control over the subsidiary (as indicated in paragraph 23 of IFRS 10).

c) NON-CONTROLLING INTERESTS

At December 31, 2016 and 2015 the detail of non-controlling interests is as follows:

Controlling Interest

Effect on Equity Effect on Income

Company 12/31/2016 12/31/2015 12/31/2016 12/31/2015

% ThCh$ ThCh$ ThCh$ ThCh$

Inmobiliaria Proyecto Integral Antofagasta S.A. 25,00% 4.386.690 4.631.428 452.435 628.459

Slots S.A. 10,00% - - - 559.958

Operaciones El Escorial S.A. 0,25% 21.010 10.566 10.444 9.284

Inversiones Vista Norte S.A. 25,00% 2.194.477 1.262.424 932.053 765.889

Casino Rinconada S.A. 30,00% 3.324.191 3.696.323 (372.132) (699.570)

Operaciones Integrales Chacabuco S.A. 30,00% (4.096.906) (3.431.323) (665.583) (688.944)

Inversiones y Servicios Guadalquivir S.A. 30,00% 629.553 585.787 43.766 44.738

Inmobiliaria Rinconada S.A. 30,00% 2.937.691 2.586.102 351.589 432.692

Inversiones Inmobiliarias Enjoy S.p.A. 36,80% 25.631.925 25.608.151 1.671.516 1.599.242

Baluma S.A. (1) 55,00% - - 586.675 1.276.992

Total 35.028.631 34.949.458 3.010.763 3.928.740

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(1) At December 31, 2016 Since Baluma Holdings S,A,, has a PUT

option over 55% of the shares owned Baluma S,A in favor of

Inversiones Enjoy S,p,A, and that: IFRS 10 / paragraph 22 defines

that the non-controlling interest (NCI) is part of the equity, and

that IAS 32 / paragraph 23 provides that a contract setting an

obligation for the entity to acquire its own equity instruments in

exchange for cash or another financial asset; a financial liability

will be recognized at the current value of the reimbursement

amount. This is why the above obligation has been displayed in

non-current accounts payable to related companies.

d) DIVIDENDS

In ordinary shareholders meeting held on 29 April 2015, it was

agreed to approve the dividend policy corresponding to the

income for the year 2014 dividends, which consisted of distributing

50% of net income for 2014, amounting to ThCh$ 1.666.914, which

is broken down into a dividend as follows:

1. Mandatory minimum charged to 30% of the net income

for 2014, for the total value of ThCh$1.000.148, divided into

2.357.459.928 shares, equivalent to $ 0.424248250 per share,

Additional dividend charged to 20% of the net income for 2014,

the total value of ThCh$ 666.766, divided into 2.357.459.928

shares, equivalent to $ 0.282832167 per share.

Dividends were paid from 29 May 2015 to shareholders registered

in the register of shareholders of the company on 23 May 2015.

At the ordinary shareholders’ meeting held on April 28, 2016, it

was agreed to approve the dividend policy for the net income for

the year 2015, which consisted in distributing 50% of profits for

2015, which amounted to ThCh$2,999,800, which is broken down

in dividend distribution as follows:

1.- Mandatory minimum with 30% charge to net income for

the year 2015, for ThCLP$1.799.880, divided into 2.357.459.928

shares, equivalent to CLP$0.7634828816 per share.

2. - Additional dividend with 20% charge to net income for the

year 2015, for ThCLP$1.199.918, divided into 2.357.459.928 shares,

equivalent to CLP$0.5089885880 per share.

Dividends were paid as of May 27, 2016 to the shareholders

registered in the Company’s shareholder registry at May 20, 2016.

At 31 December 2015 the minimum statutory dividend of 30% of

net income was provisions, amounting to ThCh$1.799.880.

NOTE 28 COMPOSITION OF RELEVANT RESULTS

a) REVENUE

Breakdown of revenue at 31 December 2016 and 2015 is as follows:

12/31/2016 12/31/2015

ThCh$ ThCh$

Slot machine revenue 137.052.178 109.995.612

Gaming tables revenue 71.149.920 62.490.060

Bingo revenue 334.179 112.983

Sub-total gaming revenue 208.536.277 172.598.655

Food & Beverages revenue 31.323.751 30.089.599

Hotel revenue 20.556.744 17.837.352

Show revenue 1.487.609 1.719.100

Other ordinary revenue 11.659.953 10.993.091

Total 273.564.334 233.237.797

b) Costs Of Sales

The breakdown of costs of to 31 December 2016 and 2015 is as

follows:

12/31/2016 12/31/2015

ThCh$ ThCh$

Cost of hotel operations, food and beverage and others (*)

(94.612.823) (65.418.466)

Staff expenses (70.415.177) (67.395.944)

Expenses for basic services (18.085.591) (14.130.332)

Maintenance expenses (5.768.846) (5.208.380)

General expenses (1.445.254) (1.356.650)

Depreciation (18.650.125) (19.984.695)

Amortization (7.187.789) (8.473.585)

Total (216.165.605) (181.968.052)

(*) Includes gaming tax according to Act 19,995 and municipal

participation of the licensed casinos from the corresponding

municipalities,

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c) Finance Costs

Breakdown of finance costs at 31 December 2016 and 2015 is as

follows:

12/31/2016 12/31/2015

ThCh$ ThCh$

Interests on bank loans (6.944.936) (6.877.677)

Financial leasing (1.164.560) (1.382.096)

Interests for obligations to the public

(7.720.187) (8.794.361)

Other financial expenses (1.068.836) (560.009)

Total (16.898.519) (17.614.143)

d) Indexation for Designated Assets/Liabilities For Inflation

Breakdown of income (expense) at 31 December 2016 and 2015

is as follows:

12/31/2016 12/31/2015

ThCh$ ThCh$

Bonds and promissory notes, readjustable in UF

(814.217) (1.340.056)

Leasing, readjustable in UF (805.635) (1.247.923)

Other readjustable in UF 366.435 124.983

Total (1.253.417) (2.462.996)

e) OTHER GAINS (LOSSES)

Breakdown of other gains (losses) at 31 December 2016 and 2015

is as follows:

Acumulado

12/31/2016 12/31/2015

ThCh$ ThCh$

Variation of the fair value of Call option Baluma

(42.851.477) (277.995)

Variation of the fair value of Call option FIP

5.090.997 4.475.366

Contribution ofr equity in Uruguay (923.900) (837.957)

Expenses paid due to earthquake - (420.877)

Impairment of Property, plant and equipment

(2.027.287) -

Others (1.385.764) (1.527.826)

Total (42.097.431) 1.410.711

NOTE 29 TRANSLATION DIFFERENCES

Exchange differences for the years ended at 31 December

2016 and 2015, due to stocks of assets and liabilities in foreign

currencies other than the functional currency that were credited

(charged) to the income statement is as follows:

12/31/2016 12/31/2015

ThCh$ ThCh$

Assets in Foreign currency (2.588.569) 6.553.310

Liabilities in Foreign currency 1.026.320 (379.693)

Total (1.562.249) 6.173.617

NOTE 30 EARNINGS PER SHARE

Basic earnings per share are calculated by dividing profit or loss

attributable to shareholders by the weighted average number of

ordinary outstanding shares during the year,

The calculation of earnings per share for the accounting periods

is as follows:

12/31/2016 12/31/2015

ThCh$ ThCh$

Earnings (loss) attributable to equity instrument holders in net equity of parent company

(40.119.278) 5.999.600

Weighted average of ordinary outstanding shares

2.357.459.928 2.357.459.928

Basic earnings per share (in pesos)

(17,02) 2,54

The company has not conducted any operation of potential

diluted effect, which involves diluted earnings per share.

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NOTE 31 CONTINGENCIES AND ENGAGEMENTS

31.1 LAWSUITS

From time to time and in the normal course of business,

claims against the Company are received from customers and

counterparties.

Enjoy S.A.

“Uribe Triviño and Enjoy S.A”

Civil Case (N° C-142-2013 Regular Trial) followed before the J.L.

Castro Civil Court.

On 16 January 2013, Mrs. Norma Uribe Trivino claimed $60.000.000

for damages caused by an alleged construction carried out in her

property by the defendant, without her consent. On 8 March 2013,

the responded raises a motion to vacate hearing. On 14 March, the

respondent vacates the notification of pleading. On 11 February

2014, the case was filed since there were no useful actions on

behalf of the applicant. Unarchiving was requested on April 15,

but the objections raised are currently pending resolution by

the court. According to our legal counsel, there are sound legal

arguments that the position of the company is consistent with

the law.

Indirect affiliate company Casino Rinconada S.A.

(i) “Reyes Reyes, Ivannya with Casino Rinconada S.A”

Court case followed in the First Trial Court of Los Andes for

demand and lawsuit under consumer law.

On 11 July 2013, a civil suit is filed for damages, for the sum of

$ 52.658.645 for direct damages, lost profits and moral damage,

due the fall of a person in the game room. The grounds were that

the accident was due to the poor floor conditions. It is currently

in process, pending a reinstatement made by the applicant for

order to produce evidence. On March 11, 2016, a judgment was

issued, accepting the payment of CLP$67.439 for damages and

CLP$641.670 for consequential loss. The company presents an

appeal that is received in April 2016. On July 1, 2016, the Court of

Appeals issued a sentence and orders payment of CLP$138.374

for damages, CLP$1.428.240 incidental loss, and CLP$5.000.000

for moral damages. The company files an appeal on the merits.

Appeal was rejected. January 13, 2017 incidental compliance is

reported.

(ii) “Del Carmen Cubillo, Gladys with Casino Rinconada S.A”

Case followed in the Second Civil Court of Los Andes on demand

and claim under the Consumer Law.

On 31 December 2014, a claim was filed for damage compensation,

valued at the amount of $ 50 million, for consequential damages,

lost profits and moral damage suffered due to a fall in the hot tub.

The claim rests on the violation of the duties of care and safety. It

is currently in the procedural stage where notice was served for

response.

(iii) “Martínez against with Casino Rinconada S.A.”

Case being heard by the Twenty Seventh Court of the First

Instance of Santiago, for compensation for damages.

On July 19, 2016, the lawsuit was filed for compensation for

damages, set by the plaintiff at CLP$51.572.068, for injuries

caused by a fall in the toilets of the Casino. In our lawyers’ opinion,

the outcome of the proceedings is uncertain.

Indirect subsidiary Campos del Norte S.A.

“Herrera Palma against Campos del Norte S.A.”

Case being heard by the Third Court of the First Instance of

Coquimbo, for compensation for damages.

On May 12, 2015, the lawsuit was filed for compensation for

damages, set by the plaintiff at CLP $102.000.000, for an alleged

wilful action causing injuries by the Casino’s security guards. On

December 5, 2016, the parties were summoned for sentencing. In

our lawyers’ opinion, the outcome of the proceedings is uncertain.

Indirect subsidiary company Baluma S.A.

Trial based in Brazil:

1) Baluma S.A. c/ Silex Trading S.A. (Silex)

This trial based in Brazil arises from the use of funds of a Proex credit

on behalf of Baluma S.A. that Silex had to remand immediately to

the former. Silex recognized the debt by a document that is being

subject to court enforcement. The total amount is 1.713.343 Reales

equivalent to US $1.000.000 at the start date.

The judge granted a levy of 30% of the turnover of Silex, a measure

that was appealed by Silex and upheld by the Court of Appeals.

To date there has been no specific levy of amounts because the

accounting information presented by Silex has not presented

existence of amounts to be levied.

Additionally, the bank network has informed through the Central

Bank of Brazil to retain any amount held by Silex in accounts

under its name. This measure has been ineffective and this is

surely because Silex no longer has bank accounts.

According to our lawyers, recovery of the reclaimed amount will

depend heavily on Silex continuing its activity, duly accounting

for its income and identifying the specific assets of its enforceable

property. To date this has not happened, so the possibility of

recovering the money is low.

31.2 UNCERTAIN TAX POSITIONS

Indirect subsidiary Inmobiliaria Proyecto Integral Antofagasta S.A.

1.- Inmobiliaria Proyecto Integral Antofagasta S.A vs. Internal Revenue Service (Chilean IRS).

Case heard by the Supreme Court of Justice in connection with

the following claims:

a) Difference in calculation of leaseback loss, which would

decrease by ThCh$ 2.056.012 the credit from tax losses. The

difference is related to the tax years 2010 to 2014.

b) Additional ThCh$ 490.638 payable imposed on the

Company. According to the Chilean IRS, the Company has

not justified, among other things, costs of interest paid or

owed which it has included in its filings, plus other expenses

associated with real estate taxation.

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The Company has not recognized a liability for these uncertain

tax positions since it considers that the transaction that gave rise

to both of these differences has not been correctly interpreted by

the Chilean IRS and that in addition the Company possesses all

the necessary supporting documentation to back up the amounts

filed with the Chilean IRS.

Enjoy S.A.

2.- Enjoy S.A vs. Internal Revenue Service XV metropolitan

regional office in Eastern Santiago:

Case heard by the Third Tax and Customs Court of the Metropolitan

Region (Santiago) in connection with the following claim:

The Chilean IRS rejected the refund of ThCh$ 436.382 requested in

the income tax return relating to the tax year 2010 on the grounds

that the company did not attach the supporting documentation

for the tax loss filed.

The Company recognized an asset for this uncertain tax position

since it considers that it possesses all the necessary supporting

documentation to back up the requested refund, which

documentation it has delivered to the Chilean IRS.

On November 25, 2016 an appeal was filed, which was accepted

by the Court of Appeals, but has not yet handed down a ruling

on it.

According to Management and the external tax advisors, the

chances of winning or losing are still undetermined.

3.- Enjoy S.A vs. Internal Revenue Service XV metropolitan

regional office in Eastern Santiago:

Case heard by the Third Tax and Customs Court of the Metropolitan

Region (Santiago) in connection with the following claim:

The Chilean IRS rejected the refund of ThCh$ 449.095 requested

relating to the tax period 2014 on the grounds that it considers that

the payment made by Enjoy in favor of the bondholders would not

qualify as inevitable, rather it considers that the payment would

have been made voluntarily by the issuer.

The Company recognized an asset for this uncertain tax position

since it considers that it possesses all the necessary supporting

documentation to back up the fact that the payment made qualifies

as necessary for the company and that there are numerous similar

transactions in the market where the same type of disbursement

has been made and it has not been disallowed by the Chilean IRS.

On October 9, 2015, the Service responded to the complaint filed

and accompanied supporting evidence. On November 10 of that

year the court considered that the complaint has been answered.

Currently, it is pending that the court receives the case to be

trailed.

In the opinion of our external legal counsel to date, there is no risk

of actual loss to the Company.

31.3 ENGAGEMENTS

Engaged Guarantee to Third Parties

The obligations undertaken by Enjoy S.A and its subsidiaries

are described below. These must meet certain financial ratios

(covenants) for the term of the several loan agreements entered

into with financial institutions and the local market.

At the date of these statements of financial position, the company

complies with the obligations set forth in its financing contracts.

i) Enjoy S.A.

a) Issuance and placing of bonds in the local market

The contracts that account for the placement of bonds mentioned

in Note 22 state that Enjoy must fulfill the following obligations:

Financial Debt Level

1) The issuer shall keep - to the respective measurement date

- in its quarterly Financial Statements under IFRS, a leverage

ratio measured as Consolidated Net Debt divided by Equity, not

exceeding: /i/ two point five for the third quarter of the year two

thousand and thirteen, that is, for the measurement made on the

thirtieth day of September of the year two thousand thirteen and

/ii/ twice since the fourth quarter of the year two thousand and

thirteen onwards, i.e. from the measurement made on day thirty

one of December two thousand and thirteen. At 31 December

2016, this level reaches one point sixty six.

2) Additionally, the Issuer will keep - at the respective measurement

date -in its consolidated quarterly financial statements under IFRS,

a debt ratio measured as net consolidated financial debt divided

by an EBITDA not exceeding five point five in the first and second

quarters the year two thousand and fourteen, inclusive. That is,

from the measurements made on thirty one March and thirty

June two thousand fourteen and not more than four counting

from the third quarter of the year two thousand and fourteen and

thereafter, i.e. after the measurement is made on thirty September

two thousand and fourteen. At 31 December 2016, the indicator is

of three point zero eighty one.

Prohibition to issue commercial guarantees:

The Issuer is required to maintain assets free of any liens,

security interests, charges, restrictions or any kind of privileges

and to perform the measurement of this index on the dates of

the quarterly consolidated financial statements under IFRS.

These assets must be equivalent to at least a: /i/ one time the

outstanding amount of the total consolidated, unsecured

quarterly financial debt estimated, as of December thirty one of

the year two thousand ten and until the end of third quarter of the

year two thousand eleven, inclusive, /ii/ one point fifteen the total

amount of total consolidated financial debt without guarantees,

from the fourth quarter of the year two thousand eleven, that is,

from the measurement performed to thirty one December two

thousand eleven and until the end of the third quarter of the year

two thousand and twelve inclusive, / iii/ one point three the total

amount of the total unsecured, consolidated financial debt, from

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the fourth quarter of year two thousand twelve, that is, from the

measurement made at thirty one December 31 two thousand

and twelve and until the end of the third quarter of the year two

thousand and thirteen, inclusive, and /iv/ one point five the total

amount of all consolidated unsecured financial obligations, from

the fourth quarter of the year two thousand and thirteen onwards,

i.e. after the measurement made at thirty one December two

thousand and thirteen.

Treasury credits for withholding and surcharge taxes will not be

considered as liens, charges, restrictions or privileges for this

purpose; trade preferences established by law, and all other

charges which the Issuer has not consented to and that are being

properly challenged by the Issuer.

The Issuer shall deliver to the Representative, if so requested, the

record for verifying the indicator that this clause refers to. At 31

December 2016, the ratio of assets free of securities, outstanding

the amount of total unsecured, consolidated financial debt

reaches three point eighteen.

The issuance of series F bonds, considers the following collaterals:

1. Mortgage Guarantee on the following property:

a) Lot A of title which is registered in the name of Inmobiliaria

Rinconada S.A. folio one thousand sixty six, reverse number

one thousand seven hundred fifty one of Property Registry

of the Real Estate of Los Andes of the year two thousand

and twelve. The property registration number is the twenty

hyphen one-hundred fifty-seven of Rinconada Commune.

b) Lot B One The title deed is registered in the name of

Inmobiliaria Rinconada S.A. folio two hundred sixty seven

reverse number one thousand fifty two of the Real Estate

Record of Los Andes Real Estate Registrar of the year two

thousand and twelve. - The property registration number is

twenty-five hyphen two hundred sixteen of the commune

Rinconada.

c) Lot B Two -B title deed is registered in the name of

Inmobiliaria Rinconada S.A., folio one thousand two hundred

and sixty eight, reverse number one thousand fifty three, title

deed of the Real Estate Record of the Los Andes Real Estate

Registrar of the year two thousand and twelve. The property

registration number is twenty-five hyphen one hundred and

fifty six of commune Rinconada.

d ) Lot Thirty-eight The title deed is registered in the name of

Inmobiliaria Rinconada S.A., folio one thousand two hundred

seventy number one thousand seventy-five hundred of Real

Estate Record of the Los Andes Real Estate Registrar of the

year two thousand and twelve . - The property registration

number is the twenty-five hyphen two hundred fifty-four of

commune Rinconada.

e) Lot Thirty Nine, The title deed is registered in the name

of Inmobiliaria Rinconada S.A. folio number one thousand

two hundred seventy number one thousand seven hundred

fifty-five of the Real Estate Registry of Los Andes Real

Estate Registrar of the year two thousand and twelve. - The

property registration number is twenty-five hyphen two

hundred fifty five of the commune Rinconada.

f) Lot Forty, The title deed is registered in the name of

Inmobiliaria Rinconada S.A., folio one thousand two hundred

and sixty; reverse number one thousand seventy hundred

and fifty six, title deed of the Real Estate Record of the Los

Andes Real Estate Registrar of the year two thousand and

twelve. The property registration number is twenty-five

hyphen two hundred and fifty six of commune Rinconada.

g) Lot Forty-one, The title deed is registered in the name of

Inmobiliaria Rinconada S.A., folio one thousand two hundred

and seventy one, reverse number one thousand seven

hundred and fifty seven of the Real Estate Record of the

Los Andes Real Estate Registrar of the year two thousand

and twelve. The property registration number is twenty-five

hyphen two hundred and fifty six of commune Rinconada.

h) Lot Forty-two , The title deed is registered in the name of

Inmobiliaria Rinconada S.A., folio one thousand two hundred

and seventy one, everse number one thousand seven

hundred and fifty eight of the Real Estate Record of the

Los Andes Real Estate Registrar of the year two thousand

and twelve. The property registration number is twenty-five

hyphen two hundred and fifty eight of commune Rinconada.

i) Lot A Two, The title deed is registered in the name of

Inmobiliaria Rinconada S.A., folio one thousand two hundred

and seventy two, reverse number one thousand seven

hundred and fifty nine of the Real Estate Record of the Los

Andes Real Estate Registrar of the year two thousand and

twelve. The property registration number is twenty-five

hyphen sixty-five of commune Rinconada.

j) Lot A Three, The title deed is registered in the name of

Inmobiliaria Rinconada S.A., folio one thousand two hundred

and sixty two, reverse number one thousand seven hundred

and sixty of the Real Estate Record of the Los Andes Real

Estate Registrar of the year two thousand and twelve. The

property registration number is twenty-five hyphen one

hundred and sixty six of commune Rinconada.

k) Lot A Five The title deed is registered in the name of

Inmobiliaria Rinconada S.A., folio one thousand two hundred

and seventy three, number one thousand seven hundred

and sixty-one of the Real Estate Record of the Los Andes

Real Estate Registrar of the year two thousand and twelve.

The property registration number is twenty-five hyphen one

hundred and seventy five of commune Rinconada.

l) Lot A Six, The title deed is registered in the name of

Inmobiliaria Rinconada S.A., folio one thousand two hundred

and seventy three, reverse number one thousand seven

hundred and two of the Real Estate Record of the Los Andes

Real Estate Registrar of the year two thousand and twelve.

The property registration number is twenty-five hyphen one

hundred and seventy six of commune Rinconada.

m) Lot A Eight, The title deed is registered in the name of

Inmobiliaria Rinconada S.A., folio one thousand two hundred

and seventy four, reverse number one thousand seven

hundred and sixty three of the Real Estate Record of the

Los Andes Real Estate Registrar of the year two thousand

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and twelve. The property registration number is twenty-

five hyphen one hundred and eighty nine of Rinconada

commune.

n) A mortgage over the plot 13 and 22 of the Parceling Project

El Castillo, located in the commune of Calle Larga, Los

Andes province. The domain name is registered under the

name of Inversiones y Servicios Guadalquivir S.A. on page

six hundred sixty-seven, number one thousand thirty-five of

the Property Registry of Real Estate of Los Andes, the year

two thousand and seven.

ñ) A mortgage over Lot B2-A7 resulting from the subdivision

of a larger plot named Fundo La Cuesta. The domain name

is registered underInmobiliaria Rinconada S.A. on page one

thousand six hundred forty four verso two thousand two

hundred eighty-one of the Property Registry of Real Estate

of Los Andes, two thousand and twelve.

2. Pledge Guarantee for the following personal property:

a) Pledge without displacement on movable assets deployed in

the Casino Rinconada, owned by Casino Rinconada S.A. and,

b) Pledge on movable assets deployed in the Hotel, Spa,

Restaurant, and Convention Center Rinconada, owned by

Operaciones Integrales Chacabuco S.A.

3. Bond and joint debt in which Inmobiliaria Rinconada S.A.

constitutes as guarantor and joint debtor of the obligations

contracted by Enjoy S.A.

The bonds of this issuance make us of the tax regime set in Section

104 of the Law on Income Tax, included in Decree Law N° 824.

b) Syndicated Loan

The syndicated financing agreement signed on 17 October

2014, sets the following obligations in which the debtor must

semiannually keep the following financial ratios at a consolidated

level, measured on the financial statements audited every six

months to December and June each year and a first measurement

to December 2014.

Financial Debt Limit

1) Debt limit or leverage. A level of net financial debt or leverage,

equal to or lower than: (i) one point five at 31 December 2014, (ii)

one point three times at 30 June 2015, and (iii) one point two at

31 December 2015.

As of December 31, 2016, this level reaches one point eleven

times. As established in the credit agreement, “Total Equity” will

be understood as the “Total Equity” line included in the Financial

Statements under IFRS. The negative effects recorded by the

accounting adjustments caused by the recognition of the fair

value changes of the put option of fifty-five percent of the shares

of Caesars Entertainment in Baluma S.A. are excluded, which has

previously been informed to the participating creditors and of

other derivative transactions and the changes in the functional

currency of investments abroad by the debtor, as long as this

does not imply any movement or outflow of cash for the debtor.

Enjoy S.A. and subsidiaries, has calculated the following indicator

of Net Consolidated Financial Debt and Equity adjusted as of

December 31, 2016, as required by the credit agreement:

Concepts ThCLP$

Equity as of 12/31/2016 111.210.492

Adjustments:

Translation adjustment subsidiaries It is positive

Translation adjustment put option (10.813.112)

Adjustment for impairment call option Baluma (43.846.289)

Adjustment derivative instruments (775.172)

Total adjustments (55.434.573)

Adjusted Equity as of 12/31/2016 166.645.065

DFN 184.401.298

Adjusted ratio 1.11

2) Indebtedness ratio. An indebtedness ratio less than or equal

to four times, calculated as per the annual financial statements of

the debtor, as of December 31, 2014. As of December 31, 2016, this

indicator is three times, as required by the credit agreement.

3) Maintenance of free assets. The debtor shall maintain, at

least, assets free of encumbrances equivalent to one point five

times the total amount of its consolidated financial obligations

without guarantees. As of December 31, 2016, this indicator is

three point eighteen times, as required by the credit agreement.

The signing of the syndicated loan includes the following collateral:

a) Mortgage on lodges and property, located on International

detour Camino Internacional N° 655 and N° 663, Villa Las

Araucarias, in the town of Pucon, Province of Cautín, Region

IX. The domain name is registered in the name of Inmobiliaria

Kuden S.A. on page 1,817, N° 1,263 of the Property Registration

of Pucón Real Estate Registrar of the year 2000.

b) A mortgage over property located at Site N° One of

Block (manzana) No. 23 of the street Pedro de Valdivia N°

4,331, Pucon. The domain name is registered in the name

of Inmobiliaria Kuden S.A. on page 2,434, N° 1,721 of the

property registration of Pucón Real Estate Registrar 2007.

c) Mortgage over property lots A-B-C, located in Balneario de

Peñuelas, Coquimbo. The domain name is registered in the

name of Inmbobiliria Proyecto Integral Coquimbo S.A. on

page 483 N° 283 in the Property Registration of year 2007

of the Real Estate Registrar of Coquimbo.

d) Mortgage over the storeroom and fourth underground

parkingofthebuilding�EdificioNeruda�,locatedonRosario

Norte 555, Las Condes, Santiago. The domain name is

registered in the name of Enjoy Gestión Ltda. on page 13303,

N° 21270 of the Property Registration of the Santiago Real

Estate Registrar, year 2007.

e) Mortgage on offices and parking lots, Floor 10 “Edificio

Neruda” Rosario Norte 555, Las Condes, Santiago. The title

deed is registered to Enjoy Gestión Ltda. on page 85221,

No. 77528 of the 2004 Property Register of the Santiago

Registrar of Land, Mines and Industrial Property.

f) Mortgage on Lot A One in the community of Pucón, province

of Villarrica, Region Nine. The title deed is registered to

Inmobiliaria Kuden S.A., on page 776 No. 1528 of the 2011

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Property Register of the Pucón Registrar of Land, Mines and

Industrial Property.

g) Mortgage on the property known as lot b in the community

of Pucón, province of Villarrica, Region Nine. The title deed

is registered to Inmobiliaria Kuden S.A., on page 2564

dorso No. 1639 of the 2008 Property Register of the Pucón

Registrar of Land, Mines and Industrial Property.

h) Mortgage on the site located in Castro - Gamboa, Ruta 5

Castro – Quellón no number, province of Villarrica, Region

Nine. The title deed is registered to Inmobiliaria Proyecto

Integral Castro S.A., on page 2365 dorso No. 2534 of the

2009 Property Register of the Castro Registrar of Land,

Mines and Industrial Property

2) Joint surety and joint and several co-signer

Signing the syndicated loan considers joint surety and joint and

several co-signing for the following companies; Enjoy Gestión

Ltda., Inversiones Enjoy S.p.A., Slots S.A., Masterline S.A., Enjoy

Consultora S.A., Campos del Norte S.A., Operaciones Integrales

Coquimbo Ltda., Kuden S.A., Operaciones Turísticas S.A., Rantrur

S.A. and Operaciones Isla Grande S.A. These companies become

separately and indistinctly joint sureties and joint and several co-

signers for the main creditors, with a view to guaranteeing full,

effective and timely fulfilment of each and every one of the present

and future obligations that the debtor may have contracted or

may contract pursuant to this contract. Each of the guarantors

are also sureties, joint sureties and joint and several co-signers

of the promissory notes signed, or which must be signed, to

evidence their payment obligations under the above syndicated

loan agreement.

c) Banco Internacional

The credit agreement signed by Enjoy S.A. and Banco Internacional

is guaranteed by the collection of cash flows receivable from

payments made with credit and debit cards in certain subsidiaries

of Enjoy in Chile.

ii) Inmobiliaria Proyecto Integral Antofagasta S.A. (IPIA)

The lease purchase contract signed with Banco de Chile and BCI

on October 14, 2014 and its amendments stipulate the following

obligations, which are measured annually, with the year-end

financial statements:

Level of financial debt

1. At a combined level, the companies shall maintain a debt

service ratio of equal or than one point twice. Debt service

will be understood to be the EBITDA to total annual rent

that the lessee must pay pursuant to clause four of the

above contract ratio, plus the companies’ financial expenses.

EBITDA will be understood to be the operating income less

operating costs less administrative costs plus depreciation

for the year plus amortizations plus asset impairment losses.

The indicator will be measured on the thirty first of March

each year, with balance sheets at December thirty first of the

prior year, as of two thousand and fourteen. At December 31,

2016, this indicator was two point forty-nine times.

2. At combined level, the companies shall maintain a liquidity of

zero point five times or more, with liquidity being understood

to be the current asset to current liability ratio, deducting

in both cases the accounts receivable from and payable

to related companies. The indicator will be measured on

the thirty first of March each year, with balance sheets at

December thirty first of the prior year, as of two thousand

and fourteen. At December 31, 2016, this indicator was zero

point sixty-six times.

Common obligations

1. In the entire period this contract is in force, Inversiones

Vista Norte S.A. irrevocably promises the lessors that it will

maintain its ownership interest in Operaciones El Escorial

S.A., which currently stands at ninety nine percent of the

shares.

2. In the entire period this contract is in force, Enjoy S.A.

irrevocably promises the lessors that it will maintain a direct

or indirect interest of not less than fifty-one percent of

each one’s shares in the companies Inmobiliaria Proyecto

Integral S.A. and Inversiones Vista Norte S.A. Likewise,

Enjoy S.A. promises to maintain its control, management

and administration of Inmobiliaria Proyecto Integral S.A. and

Inversiones Vista Norte S.A.

3. The brothers Antonio Claudio, Francisco Javier, Maria Cecilia,

and Ximena María, all with the surname Martínez Seguí, must

maintain, directly or indirectly, the control, management

and administration of the companies Enjoy S.A., Inmobiliaria

Proyecto Integral Antofagasta S.A., Operations El Escorial

S.A. and Inversiones Vista Norte S.A. Likewise, the above-

mentioned persons shall jointly hold, directly or indirectly, a

percentage greater than fifty-one percent of the property of

Enjoy S.A.F

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31.4 GUARANTEES

Indirect Guarantees

Guarantee CreditorDebtor

Type of GuaranteeAssigned Assets

Balances pending payment to

closing date

Expiration

Name Relationship Type Book Value 12-31-2016 12-31-2015 Date

ThCh$ ThCh$ ThCh$

Municipality of Viña del Mar Masterline S.A. Indirect SubsidiaryBank Guarantee

NoteStructure concession - 790 - 5/30/2017

BCI / Banco de ChileInmobiliaria Proyecto

Integral Antofagasta S.A.Indirect Subsidiary Pledge Installment payments - 27.596.874 30.156.250 4/8/2024

Municipality of AntofagastaInmobiliaria Proyecto

Integral Antofagasta S.A.Indirect Subsidiary

Bank Guarantee

NoteUrbanization - 158.087 - 1/12/2017

Municipality of Pucón Kuden S.A. Indirect SubsidiaryBank Guarantee

NoteMunicipal Concession - 65.870 - 1/12/2017

Municipality of PucónOperaciones Turísticas

S.A.Indirect Subsidiary

Bank Guarantee

NoteSky Center concession - 3.364 - 9/30/2017

General Director of Maritime

Territory and Merchant

Marine

Campos del Norte S.A. Indirect SubsidiaryBank Guarantee

Note

Maritime concession in

Coquimbo - 4.269 4.852 12/1/2017

Bond Series F Enjoy S.A. Parent Pledge Inmobiliaria Rinconada S.A. 39.435.110 23.907.064 28.376.965 6/14/2021

Baluma Holdings S.A. Inversiones Enjoy S.p.A. Direct Subsidiary Pledge Baluma S.A. Shares 93.769.317 - - 5/31/2015

Baluma Holdings S.A. Enjoy Consultora S.A. Indirect Subsidiary Pledge Baluma S.A. Shares 250.720 - - 5/31/2018

Banco BBVA, Santander,

Tanner, Estado y ScotiabankEnjoy S.A. Parent Guarantor

Casino and Hotel Chiloe

Property, Coquimbo, Casino

and Gran Hotel Pucon

Property, Cabins for workers,

and office floor and parking in

Nueva Las Condes

56.419.033 27.118.886 40.801.020 10/17/2018

Municipality of Viña del Mar Antonio Martínez y Cía. Indirect SubsidiaryBank Guarantee

NoteMunicipal Concession - 2.625.883 - 1/31/2018

Banco SantanderOp. Integrales Isla Grande

S.A.Indirect Subsidiary

Bank Guarantee

Note

Contract Subletting Hotel

Patagónico Pto. Varas - 223.957 - 12/1/2017

BCI Campos del Norte S.A. Indirect SubsidiaryBank Guarantee

NoteMunicipal Concession - 28.245 28.112 3/31/2017

The Performance Bonds are not registered as obligations in Enjoy S.A. and Subsidiaries. However, in the case of breach of the respective

contracts, this will imply to recognizing the obligation in the Financial Statements.

NOTE 32 EBITDA AND FINANCIAL DEBT

EBITDA = (Earnings before interest, taxes, depreciation and

amortization)

EBITDA is a financial indicator meaning “Earnings before Interest,

Taxes, Depreciation and Amortization.” EBITDA is calculated

based on the statement of income, representing the company’s

operating income before deducting interest, amortization,

depreciation and income taxes. This indicator is used as a measure

of profitability and also for purposes of valuing companies, among

others.

The methodology used by Enjoy S.A. and its subsidiaries to

determine the EBITDA is as follows:

Income from ordinary activities (+)

Costs of sales (-)

Administration expenses (-)

Depreciation and amortization (i) (+)

Impairment (reversal) of assets (ii) (+)

Total EBITDA (=)

(i) Depreciation of fixed assets and amortization of licenses, are

recorded under the item Cost of sales in the income statement

by function.

(ii) Impairment (reversal) of assets is recorded in the account

management fees for the income statement by function.

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a) EBITDA (*) (**)

Enjoy S.A. and its subsidiaries, have calculated the EBITDA indicator reported for the following exercises:

Ebitda Finacial Statements

Items

1/1/2016 1/1/2015

12/31/2016 12/31/2015

ThCh$ ThCh$

Income from ordinary activities 273.564.334 233.237.797

Costs of sales (216.165.605) (181.968.052)

Administration expenses (29.426.959) (26.961.624)

Depreciation 18.650.125 19.984.695

Amortization 7.187.789 8.473.585

Impairment (reversal) of stocks 36.790 21.110

Impairment (reversal) of Current Receivables 7.314.807 5.827.841

Total EBITDA 61.161.281 58.615.352

EBITDA before income (*) 22,4% 25,1%

 (*)Definitionaccordingtothecontractsforlinesofissuanceandplacementofbondsinthelocalmarket.

(**) Unaudited indicator

b) NET FINANCIAL DEBT

Enjoy S.A. and its subsidiaries have calculated the following Net Consolidated Financial Debt and Net Consolidated Financial As of at 31

December 2016 and 2015:

Items12/31/2016 12/31/2015

ThCh$ ThCh$

Other current financial liabilities (+) 89.810.778 63.131.096

Other non-current financial liabilities (+) 136.180.103 152.478.360

Cash and cash equivalents (-) 41.589.583 33.017.974

Net financial debt 184.401.298 182.591.482

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c) DEFINITIONS

c.1) Indebtedness measured as net consolidated financial debt divided by equity:

Calculation formula:

Net consolidated financial debt

Equity

Account balance included:

Other current financial liabilities + other non-current financial

liabilities – cash

Equivalent Equity

c.2) Indebtedness measured as net consolidated financial debt divided by EBITDA.

Calculation formula:

Net financial debt

EBITDA 12 months - rolling

Book Accounts included:

Other current financial liabilities + other non-current financial

liabilities – cash equivalent Gross

earnings + administration expenses (**)

(**) Excluding movements that are not cash flows, such as

depreciations, amortizations and impairment of assets

c.3) Unsecured consolidated financial liabilities

Calculation formula:

Assets free of guarantees

Non-guaranteed financial debt

Book accounts included:

Total Assets (-) Property, plant and equipment provided in

guarantee

Other current financial liabilities + other non-current financial

liabilities

The amount of unencumbered assets and consolidated unsecured

obligations at 31 December 2016 amounts to M$439,953,098 and

M$138,134,841 respectively.

NOTE 33 GUARANTEES RECEIVED FROM THIRD PARTIES

As of 31 December 2016 and 2015, Enjoy S.A. and its subsidiaries

have no indemnities from third parties to report.

NOTE 34 GUARANTEES RECEIVED

On 31 December 2011, by public deed executed before the Public

Notary of Santiago, Eduardo Diez Morello, a debtor of subsidiary

Enjoy Gestión Ltda., constituted a first mortgage in favor of

Enjoy Management Limited, for a rural field of a surface of 253

hectares, 40 areas, located in Alcalde de Llau Llao, Castro district

of the province of Chiloe, in Los Lagos Region. The mortgage was

created to ensure payment of a debt currently held by the grantor

to Enjoy Gestión Ltda., amounting to 10,182,18 UF.

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NOTE 35 ASSETS AND LIABILITIES BY CURRENCY

The assets and liabilities in foreign and local currency for each of the periods under review are:

Assets Currency Functional currency 12/31/2016 12/31/2015

ThCh$ ThCh$

Current assets

Cash and cash equivalents Chilean pesos CLP 21.391.675 12.923.266

Cash and cash equivalents Dollar USD 19.255.643 18.309.843

Cash and cash equivalents Argentinean Pesos ARS 854.484 1.723.464

Cash and cash equivalents Euro EUR 17.506 29.585

Cash and cash equivalents Kunas HRK 12 2.219

Cash and cash equivalents Colombian Pesos COL 70.263 29.597

Other financial current assets Chilean pesos CLP 1.842.507 906.172

Other financial current assets Kunas HRK 11.698 16.299

Other financial current assets Argentinean Pesos ARS 11.129 49.488

Other financial current assets Dollar USD 935.260 674.986

Trade debtors and other receivables, current Chilean pesos CLP 17.976.313 14.972.848

Trade debtors and other receivables, current Dollar USD 19.464.615 22.943.352

Accounts receivable from related parties, current Chilean pesos CLP 42.418 319.144

Accounts receivable from related parties, current Dollar USD - 58.477

Accounts receivable from related parties, current Argentinean Pesos ARS 1.035.035 862.850

Accounts receivable from related parties, current Kunas HRK 737.540 788.630

Inventories Chilean pesos CLP 2.516.104 2.104.885

Inventories Dollar USD 1.535.178 1.464.633

Inventories Colombian Pesos COL 72.076 23.217

Current tax assets Chilean pesos CLP 5.819.356 5.331.321

Current tax assets Dollar USD 1.262.084 1.377.183

Current tax assets Argentinean Pesos ARS 83.296 59.800

Total current assets 94.934.192 84.971.259

Non-current assets

Other assets, non-current Chilean pesos CLP 14.093.592 6.505.551

Other assets, non-current Dollar USD - 45.440.046

Other assets, non-current Chilean pesos CLP 291.642 530.888

Accounts receivable from related entities, non-current Chilean pesos CLP 637.139 637.139

Investments in associates Chilean pesos CLP 2.273.062 2.215.488

Investments in associates Argentinean Pesos ARS 6.471.456 8.352.695

Investments in associates Kunas HRK (933.579) (999.774)

Intangible assets other than goodwill Chilean pesos CLP 27.476.219 31.130.449

Intangible assets other than goodwill Colombian Pesos COL 15.849 19.249

Intangible assets other than goodwill Dollar USD 51.386.841 57.508.910

Goodwill Chilean pesos CLP 3.310.727 3.310.727

Property, plant and equipment Chilean pesos CLP 158.578.976 166.309.667

Property, plant and equipment Colombian Pesos COL 1.645.549 1.597.429

Property, plant and equipment Dollar USD 180.862.958 194.914.015

Deferred tax assets Chilean pesos CLP 33.319.607 31.084.314

Deferred tax assets Colombian Pesos COL 244.583 27.562

Deferred tax assets Argentinean Pesos ARS 62.904 81.457

Total non-current assets 479.737.525 548.665.812

Total assets 574.671.717 633.637.071

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12/31/2016

Liabilities

CurrencyFunctional

currency

Current

Total current

No CurrentTotal non-

currentUp to 90 days90 days to 1

year1 to 3 years 3 to 5 years

more than 5

years

ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$

Other financial

liabilitiesChilean pesos CLP 26.010.287 46.172.718 72.183.005 17.384.153 - - 17.384.153

Other financial

liabilitiesUF CLF 2.400.325 12.549.233 14.949.558 40.916.524 38.985.753 38.893.673 118.795.950

Other financial

liabilitiesDollar USD - 2.678.215 2.678.215

Trade payable and

other payableChilean pesos CLP 26.347.102 - 26.347.102 - - - -

Trade payable and

other payableDollar USD 15.980.608 1.187.075 17.167.683 - - -

Trade payable and

other payable

Argentinean

PesosARS 19.070 - 19.070 - - - -

Trade payable and

other payable

Colombian

PesosCOL 33.883 - 33.883

Trade payable and

other payableKunas HRK 1.263 - 1.263 - - - -

Accounts payable to

related partiesChilean pesos CLP - 2.052.439 2.052.439 - - - -

Accounts payable to

related parties

Argentinean

PesosARS - 2.182.531 2.182.531 - - - -

Accounts payable to

related partiesDollar USD - 126.755.462 126.755.462 - - - -

Current tax liabilities Chilean pesos CLP - 1.284.011 1.284.011 - - - -

Current tax liabilitiesArgentinean

PesosARS - 331.791 331.791 - - - -

Deferred tax liabilities Chilean pesos CLP - - - - - 5.207.790 5.207.790

Deferred tax liabilities Dollar USD - - - - - 44.228.529 44.228.529

Current provisions for

employee benefitsChilean pesos CLP - 257.289 257.289 - - - -

Current provisions for

employee benefitsDollar USD - 10.122 10.122 - - - -

Other liabilities Chilean pesos CLP 1.933.913 - 1.933.913 - - - -

Other liabilities Unidad fomento CLF - - - - - - -

Other liabilitiesArgentinean

PesosARS 4.955 - 4.955 - - - -

Other liabilities Dollar USD 9.652.404 - 9.652.404 - - - -

Other liabilities Kunas HRK 107 - 107 - - - -

Total liabilities 82.383.917 195.460.886 277.844.803 58.300.677 38.985.753 88.329.992 185.616.422

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12/31/2015

Liabilities

CurrencyFunctional

currency

Current

Total current

No CurrentTotal non-

currentUp to 90 days90 days to 1

year1 to 3 years 3 to 5 years

more than 5

years

ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$

Other financial

liabilitiesChilean pesos CLP 39.449.969 14.631.388 54.081.357 26.382.316 1.414.351 - 27.796.667

Other financial

liabilitiesUF CLF 2.440.765 6.608.975 9.049.739 33.837.455 39.582.127 51.262.111 124.681.693

Trade payable and other

payableChilean pesos CLP 27.843.470 - 27.843.470 - - - -

Trade payable and other

payableDollar USD 16.530.733 2.563.587 19.094.320 - - - -

Trade payable and other

payable

Argentinean

PesosARS 221.333 - 221.333 - - - -

Trade payable and other

payable

Colombian

PesosCOL 1.471.292 - 1.471.292 - - -

Trade payable and other

payableKunas HRK 4.027 - 4.027 - - - -

Accounts payable to

related partiesChilean pesos CLP 1.027.731 1.989.930 3.017.661 - - - -

Accounts payable to

related parties

Argentinean

PesosARS - 3.049.057 3.049.057 - - - -

Accounts payable to

related partiesDollar USD - 1.091.539 1.091.539 132.365.293 - - 132.365.293

Current tax liabilities Chilean pesos CLP - 1.934.398 1.934.398 - - - -

Current tax liabilitiesArgentinean

PesosARS - 158.890 158.890 - - - -

Deferred tax liabilities Chilean pesos CLP - - - - - 6.271.280 6.271.280

Deferred tax liabilities Dollar USD - - - - - 49.174.731 49.174.731

Current provisions for

employee benefitsChilean pesos CLP 660.567 - 660.567 - - - -

Current provisions for

employee benefitsDollar USD 284.064 - 284.064 - - - -

Other liabilities Chilean pesos CLP 1.491.677 - 1.491.677 - - - -

Other liabilitiesArgentinean

PesosARS 4.288 - 4.288 - - - -

Other liabilities Dollar USD 9.786.705 - 9.786.705 - - - -

Other liabilities Kunas HRK 52 - 52 - - - -

Total liabilities 101.216.673 32.027.764 133.244.436 192.585.064 40.996.478 106.708.122 340.289.664

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NOTE 36 OTHER EXPENSES

Breakdown of the other expenses at 31 December of 2016 and

2015 is as follows:

12/31/2016 12/31/2015

ThCh$ ThCh$

Compensations and other staff expenses

5.516.115 858.574

Total 5.516.115 858.574

The above amounts relate to costs associated with the

restructuring plan implemented by the administration of Enjoy

S.A. and subsidiaries, which were recorded in accordance with

IAS 37.

NOTE 37 SUBSEQUENT EVENTS

1.- On January 30, 2017, between Investments Enjoy S.p.A, Enjoy

S.A. and Baluma Holdings SA, an amendment to the Share

Purchase Agreement dated November 12, 2012 was made,

mainly in the following:

a) Exercise price of the call option (Modified Purchase Option):

at US$187.8 million, provided that such option is exercised

before March 31, 2017.

b) Exercise period: may be exercised after delivery of a written

notice from the Buyer to Seller of his intention to exercise

the Call Option one business day before the agreed closing

date for the purchase of the Non-Controlling Interest and,

in any event, no later than March 29, 2017. The purchase

of the Non-Controlling Interest pursuant to the exercise of

the Modified Purchase Option shall take place on the first

business day following the delivery of the notification notice.

c) Automatic exercise of the put option; In the event that the

Modified Purchase Option has not been exercised before

March 29, 2017, Baluma Holdings S.A. shall be deemed to

have exercised the Put Option, automatically and without

any action, notice or demand.

d) The purchase of Non-Controlling Interest in accordance with

the exercise of the Put Option will be made on March 31,

2017. The price of the Put Option will be the same as the one

established in letter a) above.

2.- On February 15, 2017, the Superintendence of Gambling Casinos

(SCJ) issued Circular No. 84 regarding the application of Articles

2 and 3, interim, of Law No. 19,995. Basically, it establishes that the

Municipal Casinos located in the cities of Arica, Iquique, Coquimbo,

Viña del Mar, Pucón, Puerto Varas and Puerto Natales, may

continue their operations after December 31, 2017 in accordance

with the conditions agreed in the concession contracts signed

between the Municipality and the casino operator of each city; and

until the starting date of the new permits. That is, up to the date

on which the SCJ has extended the certificate indicated in article

28 of Law No. 19,995, which provides for strict compliance with

the legal and regulatory obligations necessary to initiate activities

of a gambling casino, granted to the operating company.

3.- On January 10, 2017, was held a Meeting of Bondholders of

Series C and E (30-year bond issue) and Series F (7-year issue

agreement) with the purpose of modifying the covenants

established in the contracts. The agreed modifications were as

follows:

(i) Replace the definition of Net Consolidated Financial

Obligations in the sense of including in the definition the

accounts payable to related companies and dividends

receivable from related companies.

(ii) Maintain a debt ratio measured as Net Consolidated Financial

Obligations divided by EBITDA: (i) not exceeding six points

five times from the measurement to be made on March 31,

2017, that is, at the closing of the first quarter of the year

two thousand and seventeen and until the measurement

to be made on the 30th of September two thousand and

eighteen, that is, at the end of the third quarter of the year

two thousand and eighteen, both inclusive; and, (ii) not more

than four times as of December 31, 2018, that is, at the close

of the fourth quarter of the year two thousand and eighteen

and thereafter.

(iii) Maintain, as from the first quarter of the year two thousand

and seventeen, that is, from the measurement made on

March 31, 2017, and up to the measurement to be made on

September 30, 2018, i.e. at the end of the third quarter of the

year two thousand and eighteen or until the first quarterly

measurement in which the Issuer presents a debt ratio

measured as Net Consolidated Financial Obligations divided

by Equity not exceeding one point seventy five times,

whichever occurs first, Adjusted Net Consolidated Financial

Obligations less than or equal to the sum of three hundred

and seventy billion Chilean pesos.

(iv) Maintain a debt ratio measured as Net Consolidated

Financial Obligations divided by Equity: (a) not exceeding

five points twenty-five times from the measurement to be

made on March 31, 2017, that is, at the closing of the first

quarter of the year two thousand and seventeen and until

the measurement to be made on the 30th of September two

thousand and eighteen, that is, at the end of the third quarter

of the year two thousand and eighteen, both inclusive;

And, (b) not more than twice as of the measurement to be

made on December 31, 2018, that is, at the closing of the

fourth quarter of the year two thousand and eighteen and

thereafter.

(v) The clauses related to the obligation to pay money obligations

and the acceleration of loans for money loans, respectively,

were modified, exempting from the configuration of the

cause of default contained therein, to the circumstance that

the Issuer incurs in default or simple delay in payment, or

judicial and anticipated collection of obligations arising from

issues of negotiable instruments.

(vi) Only for the F series was authorized and allowed the change

of control when this occurred due to a capital increase.

4.- On January 30, 2017, was held a Meeting of Bondholders

of Series C and E (30-year bond issue) and Series F (7-year

issue agreement) with the purpose of modifying the covenants

established in the contracts. The approved amendments to the

30-year bond issue are as follows:

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(I) Addition of new causes for early payment option, as follows:

(1) if the Issuer disposes of or encumbers delivered on a

second mortgage; (2) if the Issuer disposes of or encumbers

assets for a 12-month accumulated amount exceeding USS15

million; (3) if the Issuer increases its capital by paying it with

cash and (4) if the Issuer distributes dividends above the

statutory minimum or the Issuer distributes dividends from

retained earnings or results from re-appraisals of assets.

These causes will remain in force until the date of publication

of the financial statements dated December 31, 2018 or

until the quarter in which the indicator of Net Consolidated

Financial Obligations divided by the Equity is less than twice.

(ii) Until the date of publication of the financial statements

dated December 31, 2018, all prepayments performed will be

made at a value equivalent to 110% of the par value.

(iii) Add the obligation to set up a second mortgage if Enjoy S.A.

(i) grants a contract or refinancing operation of its current

liabilities, or liabilities that replace its current liabilities;

(ii) provided that such contracts or transactions refer to

refinancing operations in favor of the Issuer and/or its

subsidiaries; (iii) and by virtue of which a first mortgage is

constituted on one or more of the properties owned by the

Company or any of its Related Entities, which are necessary

to operate the gambling casinos located in Rinconada de los

Andes, Pucón, Chiloé and Coquimbo, in Chile, and Punta del

Este in Uruguay, then its subsidiary shall constituted or cause

to constitute a second mortgage, on the same property, in

favor of the Bondholders.

(iv) Add also the following obligations: (i) i) CAPEX of Maximum

Annual Maintenance of USS25 million and (ii) operations

with the Controlling Group may not exceed $1 billion per

year, with exceptions.

The obligations mentioned in iii) and iv) will be in force until the

publication of the financial statements of December 31, 2018;

or until the quarter in which the indicator of Net Consolidated

Financial Obligations divided by the equity is less than twice,

whichever occurs first.

The approved amendments to the Series F bond contract are as

follows:

(I) Addition of new causes for early payment option, as follows:

(1) if the Issuer disposes of or encumbers delivered on a

second mortgage; (2) if the Issuer disposes of or encumbers

assets for a 12-month accumulated amount exceeding USS15

million; (3) if the Issuer increases its capital by paying it with

cash and (4) if the Issuer distributes dividends above the

statutory minimum or the Issuer distributes dividends from

retained earnings or results from re-appraisals of assets.

(ii) Add the following obligations: (i) CAPEX of Maximum Annual

Maintenance of USS25 million and (ii) operations with the

Controlling Group may not exceed $1 billion per year, with

exceptions.

The obligations mentioned in i) and ii) shall remain in force until the

publication of the financial statements as of December 31, 2018;

or until the quarter in which the indicator of Net Consolidated

Financial Obligations divided by the equity is less than twice,

whichever occurs first.

5.- As of the date of issuance of these Financial Statements, there

are no further events that could significantly affect the financial

position of Enjoy S.A. And Subsidiaries.

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Following you may find Standard disclosures from the GRI G4 of the Material Subjects contained in Chapter 5 of this Annual Report, regarding ENJOY’s Sustainable Development.

For more information on this report and from ENJOY’s initiatives on sustainability, please contact:

Carmen Luz Castro M.Corporate [email protected]+56 2 2770 5137

TABLE OF CONTENTS

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Strategy

G4-1Provide a statement from the most senior decision-maker of the organization.

4

Organizational profile

G4-3 Report the name of the organization. 4

G4-4 Primary brands, products, and services. 24-28

G4-5 Location of the organization’s headquarters. 29

G4-6Report the number of countries where the organization operates, and names of countries where either the organization has significant operations.

11

G4-7 Report the nature of ownership and legal form. 29

G4-8 Report the markets served. 12-23, 24-27

G4-9 Report the scale of the organization. 32, 33

G4-10 Total number of employees. 86

G4-11Percentage of total employees covered by collective bargaining agreements.

93

G4-12 Describe the organization’s supply chain. 101

G4-13Report any significant changes during the reporting period regarding the organization’s size, structure, ownership, or its supply chain.

4, 5, 87, 101

G4-14Report whether and how the precautionary approach or principle is addressed by the organization.

83, 104

G4-15List externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it endorses.

105, 107, 108

G4-16List main memberships of associations and national or international advocacy organizations in which the organization:

108

Material subjects

G4-17List all entities included in the organization’s consolidated financial statements or equivalent documents

158

G4-18Explain the process for defining the report content and the topic Boundaries.

85

G4-19List all the material topics identified in the process for defining report content.

85

G4-20Report boundaries of each material subject within the organization.

The resulting Material Subjects cover all of the Company’s operations in Chile, Argentina, Uruguay and Colombia. In those topics that in particular could not be raised in any operation, a note is indicated on the matter.

G4-21Report boundaries of each material subject outside the organization.

The resulting Material Subjects cover all of the Company’s operations in Chile, Argentina, Uruguay and Colombia. In those topics that in particular could not be raised in any operation, a note is indicated on the matter.

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G4-22Report the effect of any restatements of information provided in previous reports, and the reasons for such restatement.

In 2016, the operations of Enjoy Puerto Varas and Enjoy Park Lake were added to the Company, as well as the operation of Enjoy San Andrés, considering therefore the data of these operations.

G4-23Report significant changes from previous reporting periods in the list of material subjects and its Boundaries.

There were no significant changes in the scope of the indicators presented in the sustainability report of Enjoy with respect to previous periods.

Stakeholder engagement

G4-24 Provide a list of stakeholder groups engaged by the organization. 84

G4-25Report the basis for identification and selection of stakeholders with whom to engage.

83

G4-26 Report the organization’s approach to stakeholder engagement. 83

G4-27

Report any key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.

85

Reporting profile

G4-28 Reporting period. 82

G4-29 Date of most recent previous report. 82

G4-30 Reporting cycle. 82

G4-31Provide the contact point for questions regarding the report or its contents.

Carmen Luz Castro MoránCorporate [email protected]+56 2 2770 5137

G4-32 Report the ‘in accordance’ option the organization has chosen. 82

G4-33Report the organization’s policy and current practice with regard to seeking external assurance for the report.

This report does not include external assurance.

Governance

G4-34 Report the governance structure of the organization. 59

G4-38Report the composition of the highest governance body and its committees.

59, 61, 89

G4-39Report whether the Chair of the highest governance body is also an executive officer.

59

Ethics and integrity

G4-56Describe the organization’s values, principles, standards and norms of behaviour such as codes of conduct and codes of ethics.

7, 8

G4-58Report the internal and external mechanisms for reporting concerns about unethical or unlawful behaviour, and matters related to organizational integrity.

110

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1. Corporate Governance

G4-38 59, 61, 89

G4-39 59

2. Ethical management and crime prevention

G4-56 7, 8G4-58 110G4-SO3 At Enjoy we have a Compliance system made

up of three pillars, related to the concept of measurement (corruption). These are: compliance with the UAF (Financial Analysis Unit) regulations; compliance with internal policies, and our Model of Crime Prevention of money laundering, financing of terrorism, bribery and receivership. The risks detected are contained in a risk matrix, which is part of the model mentioned above. The matrix containing the risks is a tool for internal use only. In the 10 casinos belonging to the company (100%), corruption related risks have been assessed.

G4-SO4 Enjoy has a Crime Prevention Model of money laundering, terrorist financing, bribery and receivership, as well as its respective policy, risk matrix and manual (approved by the board of Enjoy S.A. under proposal of the Directors Committee), which is informed to all the Company’s employees. During 2016, we trained 2,726 employees in these areas, which represent approximately 91% of the total to be trained. It should be noted that most of these personnel are staff of the Gaming area who are in permanent contact with our customers. The Crime Prevention Model has been and is being informed to our suppliers also, so they have the necessary information regarding the policy contained therein.

G4-SO5 There were no corruption cases during year 2016.

G4-SO8 In 2016 there were no significant fines or non-monetary sanctions related to accounting fraud, job discrimination or corruption.

3. Tender municipal casinos and prosecution of the process

G4-DMA 36-38, 53

4. Direct economic impact

G4-EC1 115

5. Relationship with investors

G4-DMA 5, 73

6. Growth opprotunities

G4-DMA 4, 5

7. Diversity and inclusión

G4-LA12 87-91

8. Training, development and talent management

G4- LA9 95G4-LA10 95

9. Work climate, working conditions, occupational safety and welfare

G4-LA6 95

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10. Internal Communications

G4-DMA 95

11. Labor relations G4-LA16 9312. Value proposal G-PR4 There is no breach of voluntary codes

regarding the labeling of products and services.G4-PR5 96

13. Responsible Gaming

G4-DMA 97

14. Safeguarding of Customer’s health and safety

G4-DMA 100

15. Customer information management and personal data privacy

G4-PR8 During year 2016 there were no claims for breach of privacy and / or leakage of customer data.

16. Responsible drinking and handling of difficult clients

G4-HR7 100% of the guards, private security team and security supervisors have been trained in matters related to the scope of their duties and that delimits their action in front of our visitors. This training is based on essential legal principles for the respect of human rights.

17. Energy efficiency and renewable energies

G4- EN3 103

18. Operational efficiency

G4-DMA 101

19. Enviromental management

G4-EN8 103G4-EN23 104G4-EN24 During 2017 there were no environmental spills.

20. Sustainable building

G4-DMA 104

21. Aporte regional y local

EC1 116

22. Participación comunitaria y desarrollo de iniciativas en su beneficio

G4-SO1 105

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CHILEARGENTINA

URUGUAY

COLOMBIA

www.enjoy.cl

CONTACT

Esteban Rigo-Righi B.

Financial Management and

Investor Relations

Presidente Riesco 5711, Piso 15,

Las Condes, Santiago, Chile

(56) 2 2770 5071

[email protected]

Designwww.dioslascria.cl