Colbun Sa · BCS:COLBUN
Colbun Sa — Investor Day (December 2021)
43 slides from Colbun Sa's investor day presentation, Dec 15, 2021
Slide 1: Investor Day Virtual Conference 2021
Colbun INVESTOR DAY Virtual Conference 2021 Dec. 15 | 11:00 hrs
Slide 2: Ccolbun
Ccolbun : > = . . . . . ° 6666 6 6 VONA9V
Slide 3: Welcome Remarks - Chairman of the Board
€colbun [INVESTOR DAY WELCOME REMARKS | Hernan Rodriguez Chairman of the Board
Slide 4: Ccolbun
Ccolbun : > = . . . . . ° 6666 6 6 VONA9V
Slide 5: Power Sector Overview and Strategy Summary
POWER SECTOR Pe mal OVERVIEW AND itd Bee = a STRATEGY SUMMARY a
Slide 6: Power Sector Overview
ms POWER SECTOR OVERVIEW __/ POWER SUPPLY/ DEMAND MARGINAL COST MODEL REGULATORY > UNDER SCRUTINY bis, ag ENVIRONMENT
Slide 7: Power Supply/Demand
¢@ POWER SECTOR OVERVIEW _/ Ccolbun INVESTOR DAY POWER SUPPLY/DEMAND @ ~ 1. INSTALLED CAPACITY 8.000 solar OQWind ~« _) %of total dy, 28% / 4 17% MW 2 ° S Solar and wind are the dominant new 2000 v % capacity additions 7% iz ah 2.000 = 1 ind: CAGR' solar and wind: 43% a SS CAGR demand: 3% 2015 2016
Slide 8: A Role for New Technologies
me POWER SECTOR OVERVIEW __/ Ccolbun — INVESTOR DAY A ROLE FOR NEW TECHNOLOGIES ~ Storage systems are Regul Na Will this technology follow = (@) likely to play a key role © Maite. @ the path of solar&wind = in a “decarbonized” technologies? economy 7 1 Lithium-ion battery pack price Cumulative deman
Slide 9: Regulatory Environment
POWER SECTOR OVERVIEW / Ce Gy REGULATORY ENVIRONMENT Decarbonization agenda An agreement to decommission all coal-fired power plants by 2040 was signed between de Ministry and the power generation companies in 2018 Some companies have decided to accelerate their decommissioning programs Congress is
Slide 10: Regulatory Environment (cont.)
ms POWER SECTOR OVERVIEW __/ Ccolbun — INVESTOR DAY REGULATORY ENVIRONMENT (CON’T) rey | The 1,350 MMUSD fund is ooer® PEC-2 in the making? running out a. A significant debt level has Viggen Part of the burden to be accumulated socialized? voos® Risk of importing LNG in rey ) 2? certain scenarios re
Slide 11: Marginal Cost Model Under Scrutiny
me POWER SECTOR OVERVIEW __/ A case for competitive “bid and offer” wholesale market? MARGINAL COST MODEL UNDER SCRUTINY Main drivers for change: e@ New technologies have increased the e Discrepancies with regulators’ rulings and e Need to provide adequate price/market complexity of operating the sy
Slide 12: Strengthen our competitiveness
Strengthen our competitiveness by: Develop a project portfolio that has the potential to add 4,000 MW capacity by - Continuous improvement in 2030 and to operate in the lower quartile Focus on unregulated clients with an productivity and efficiency of the industry’s cost curve attractive value propo
Slide 13: Chief Energy Officer
€colbun INVESTOR DAY 12
Slide 14: Asset Base Optimization: Short term challenges
ASSET BASE OPTIMIZATIO Short term challenges , THERMAL fs TRANSMISSION HYDROLOGY 1 puoe GENERATION ry FUEL PRICES =~ _ |NFRASTRUCTURE Hydrology in 2021 was There has been an Fuel prices have The transmission at its lowest historical intensive use of thermal increased significantly system has been un
Slide 15: Asset Base Optimization: Short term challenges
ASSET BASE OPTIMIZATIC Short term challenges A possible scenario: Another very Diesel requirements could increase dry 2022 with high fuel prices in 2022 (m3/day)" Under conditions maximum Par demand, the use of diesel is e The system would rely on minimum estimated that could base load capacity outa
Slide 16: Ability to serve commitments under different hydro conditions
ASSET BASE OPTIMIZATIO Ability to serve commitments under different hydro conditions @ Flexible gas supply ;) Generation & Commitments 2021 (TWh) e ADP LNG LNG - Spot Argentinean NG = Long-term contract to Subject to operational Access to the access purchases of and market conditions Argentinean gas
Slide 17: Hydroelectric and Thermal Power Plants acquire great relevance
Hydroelectric and Thermal Power Plants acquire great relevance With coal-fired power plants decommissioning there will be less availability of these type of services
Slide 18: Continuous improvement in productivity and process efficiency
ASSET BASE OPTIMIZATION —_/ Continuous improvement in productivity and process efficiency Maintenance and operational fixed costs (USD mm) 53 50 46 40 37 35 34 2017 2018 2019 2020 2021 Key iniciatives © Optimizing maintenance © Productivity improvement e “Reengineering” of contracts **A constant exc
Slide 19: Transmission congestion in the central zone
Transmission congestion in the central zone • •
Slide 20: Peruvian Market: Change in gas price declaration methodology
Peruvian Market: Change in gas price declaration methodology
Slide 21: Chief Engineering and Project Officer
Chief Engineering and Project Officer
Slide 22: Growth in Renewables
~ GROWTH IN RENEWABLES / € colbun INVESTOR DAY nae DEVELOPMENT Objective: PHASE To develop projects with LCOE in the © TARGET CRITERMA Ons IN first quartile of the industry CONSTRUCTION © High Load Factor ENGINEERING AND © Colbunas EPC integrator © Close to system interconnection points © Experience
Slide 23: Growth in Renewables: project portfolio
~ GROWTH IN RENEWABLES / li PROGRESS STAGE: @ Stusies”” © Breespitty © Siyenade © ws 1, 7280 MW a 4 INTI PACHA HS oD > 1,2&3 DIEGO DE ALMAGRO (50 730 mw 232 MW PV + 150MWPV: 32 MWh BESS +360 MWh : BESS a 45MW JUNQUILLOS 360 MW Located in one of the areas with the best radiation in Chile. a ‘ Zs Q q
Slide 24: Horizonte Wind Farm Project
Horizonte Wind Farm Project Location: Taltal, Antofagasta Region KEY INDICATORS Estimated capacity 778 MW - 140 Wind Turbines @ Net annual generation 2,400 GWh Antofagasta @ Estimated capacity factor 35.3% Taltal @ Land surface 8,000 ha Parinas S/S 500/220 @ Connection point (9,7 and 15,8 km) e@ Env
Slide 25: Horizonte Wind Farm Project Render
Horizonte Wind Farm Project Render
Slide 26: Diego de Almagro PV Project
Diego de Almagro PV Project Location: Diego de Almagro, Atacama Region KEY INDICATORS Estimated capacity 232 MW PV + 32 MWh BESS @ Net annual generation 648 GWh © Estimated capacityfactor 35% @ Land surface 330 ha = 5 ; = as si mr Se — A . : Connection point (2.6 km) @ Env. Impact Assessment Approve
Slide 27: Diego de Almagro PV Project
~ GROWTH IN RENEWABLES / Ccolbun INVESTOR DAY Diego de Almagro PV Project ' m- T\ T\ = Site Works - December 2021 All equipment already on site First power injection: Dec 2021 26
Slide 28: Machicura PV Project
- GROWTH IN RENEWAB Machicura PV Project Location: Colbtin, Maule Region KEY INDICATORS @ Estimated capacity 9MW @ Net annual generation 20.5 GWh @ Estimated capacity factor 24% @ Land surface 20 ha @ Connection point Connected to Colbun’s line @ Env. Impact Assessment Approved e@ coD Nov 21
Slide 29: Machicura PV Project
~ GROWTH IN RENEWABLES / Ccolbun INVESTOR DAY Machicura PV Project Site Works - November 2021 28
Slide 30: Inti Pacha 1, 2 & 3 PV Project
GROWTH IN RENEWABLES Inti Pacha 1, 2 & 3 PV Projec Location: Maria Elena, Antofagasta Region KEY INDICATORS i OD o 1; 250 MW Tocopilla x r = Estimated capacity 2: 250 MW. Antofagasta e 3: 250 MW e@ Net annual generation ~2,000 GWh e Estimated capacity factor 35% Inti Pacha 1 - Land surface 1,105 ha
Slide 31: Jardín Solar PV Project
GROWTH IN RENEWABLES __/ Ccolbun e@ INVESTOR DAY Jardin Solar PV Project Location: Pozo Almonte, Tarapaca Region Iquique y KEY INDICATORS e@ Estimated capacity 540 MW @ Net annual generation 1,500 GWh @ Estimated capacity factor 35% @ Land surface 1,000 ha @ Connection point New Pozo Almonte S/S 220
Slide 32: Commercial Highlights - Chief Commercial Officer
G colbun [INVESTOR DAY COMMERCIALHIGHLIGHTS | Ulivia Heuts Chief Commercial Officer 31
Slide 33: Increase share of sales to unregulated clients
Increase share of sales to Excellence in customer Delivery of focused value- unregulated clients in our experience added services sales mix = * 4 e e Risk profile of unregulated Customers service model aie 8 products/services: clients.ismore attractive leveraging digitalization “Colbun by Efizity” B
Slide 34: Power supply commitments
COMMERCIAL HIGHL Power supply commitments — y “a. ‘ho Our PPAs are supported by a matching cost-efficient power generation Cost structure properly reflected in sale prices + active risk management 10,3 9,8 2016 2017 2018 2019 2020 Consequently, our PPAs portfolio willincrease as our new renewable |
Slide 35: Focus on unregulated customers
. COMMERCIAL HIGHLIGHTS —_/ GC colbun Focus on unregulated customers Che a We have increased the share As a result, our market share in of sales to unregulated clients. ————- _—‘ the unregulated segment has in-our-sales mix increased > © Calbun 41% 2016 2016 Sales to Colbun’s share in the unregulate
Slide 36: We are serving an increasing number of customers
We are serving an increasing number of costumers 15 19 9 1907 —~C~«*:=<i«‘«‘CS*: wo © fe) ° fe) i _—F How likely would you recommend to become a COLBUN client? Colbun’s NPS Expanded delivery of value- © Colbun added services by S 0, acquiring Efizity re auelale wi sf Camanchaca de ‘€ haca . Power Co
Slide 37: Chief Development and Innovation Officer
Chief Development and Innovation Officer
Slide 38: Power storage systems
HVDC Line Solar resource/ we CAPEX for att generation eries expected Operational only by 2029+ abundance Z Price arbitration Potential 1,200 GW only System balance and opportunity between day in Antofagasta’ ancillary services and night hours ae 50% by 20302 sa 1. GlZand Ministry of Energy, 2014 37
Slide 39: Storage systems can leverage our asset base
Storage systems can leverage our asset base
Slide 40: Exploring new areas: infrastructure assets for power supply
Exploring new areas: infrastructure assets with an important role for power supply
Slide 41: Our Pathway
C colbun INVESTOR DAY Business Sustainability Reportability progresses <r - ESG commitments Strategy tegrated Annual Report A" and goals made public Integrated inall areas of 2 ‘listing” (Chile & MILA) reno A re the comes in = Stakeholder curve Growth focus on - First green bond S= — . renewable ene
Slide 42: Our ESG goals and highlights
Our ESG goals and highlights Operational (m3/MWh):
Slide 43: Investor Day Virtual Conference 2021
Colbun INVESTOR DAY Virtual Conference 2021 Dec. 15 | 11:00 hrs