DocuSign Envelope ID: 98DED1AE-3C53-41C5-AED1-5F74B6ECEE51
3LATAM
ESSENTIAL FACT
LATAM AIRLINES GROUP S.A.
Issuer of securities registered in the Securities Registry
Santiago, March 9, 2023
Mrs. Solange Berstein Jáuregui,
President of the Commission for the Financial Market
Av. Libertador Bernardo O’Higgins 1449
Santiago
Ref.: Communicates ESSENTIAL FACT
Dear Sir or Madam:
In accordance with the provisions of Article 9 and the second paragraph of Article 10 of Law No. 18,045, and the provisions of General Standard No. 30, duly authorized by the Board of Directors in a meeting held on this same date, I inform the Financial Market Commission, as an ESSENTIAL FACT of LATAM Airlines Group S.A. (LATAM or the Company), The following:
As of today, the Board of Directors of LATAM in extraordinary session approved the Annual Financial Statements for the year ended December 31, 2022, which report a profit for the year of US$ 1,339,210,295. On the other hand, the Company has accumulated losses from previous years in the amount of US$ 8,841,105,611, which are mainly due to negative results due to the impact of the COVID-19 pandemic on business operations from 2020 to 2022. In view of the above, the profits for the year ended December 31, 2022 must first be used to absorb such losses. Applying these operations, LATAM has accumulated net losses of US$ 7,501,895,316 as of December 31, 2022. Therefore, it is not appropriate to distribute dividends charged to the year ended December 31, 2022.
At the same meeting, the Board of Directors agreed to recommend to shareholders to reduce the share capital in the amount of US$ 7,501,895,316, by absorbing the total accumulated net losses indicated in the preceding paragraph. To this end, in the coming days the Board of Directors plans to convene an extraordinary meeting of shareholders to pronounce on this matter.
Yours sincerely yours,
DocuSigned by:
Ramiro Alfonsin B.
Vice President Finance
LATAM Airlines Group S.A.
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