Colbun Sa · BCS:COLBUN
Colbun Sa — Larraín Vial 18th Annual Conference 2024
36 slides from Colbun Sa's conference presentation, March 2024
Slide 1: Corporate Presentation
CORPORATE PRESENTATION L a r r a í n V i a l 1 8 th A n n u a l C o n f e r e n c e - M a r c h 2 0 2 4
Slide 2: About Us: Overview
ABOUT US Overview 1 INSTALLED CAPACITY (%) 54% 41% 5% Thermoelectric Hydroelectric Solar 2 MARKET SHARE (1) Enel Kallpa 19% Enel 29% 30% Colbun 33% Engie Aes Andes 16% Electroperú Engie 14% 15% Others 6% Fenix 11% 11% 15% Others 3 OWNERSHIP (%) 50% 17% 23% 10% Matte Pension Free Angelini Group Funds
Slide 3: Our Strategy: Summary
OUR STRATEGY Summary PURPOSE: We transform energy, in balance with the planet, to fuel your projects and dreams WE ADD VALUE TO Shareholders, Environment, Customers, Workers, Communities, Suppliers Core business Expand our limits New businesses Asset 24/7 Customers Energy Growth and Water Green Opti
Slide 4: Market Conditions: Markets Update
MARKET CONDITIONS Markets Update INSTALLED CAPACITY LTM GENERATION DEMAND GROWTH MARGINAL COST GW GWh 12 months average % US$/MWh 3% 4% Alto Jahuel 29% Hydro 20% Cardones 260 Coal 2% 1,0% Puerto Montt 210 Gas and LNG 160 83,659 0% 12% Diesel 110 GWh SEN Wind 60 46 -2% 35 35 GW 1% Solar 10 + 4.0% y/y
Slide 5: Market Conditions: Regulatory Framework
MARKET CONDITIONS Regulatory Framework LATEST CHANGES UNDER DISCUSSION 1. Price stabilization mechanism for regulated client tariffs 1. Decarbonization process Aims to avoid electricity tariffs increases Aims to accelerate the decommission of to regulated clients coal-fired facilities PEC 1 US$1,350
Slide 6: Hydrological Conditions in Chile
MARKET CONDITIONS Hydrological conditions in Chile HYDROELECTRIC GENERATION (TWh) COLBUN’S ANNUAL HYDRO GENERATION (TWh) SEN 2022 3 + 1.7 TWh Colbun 2022 Colbun 2023 v/s 2022 2,5 5.3 2 1,5 6,8 6,9 1 5,6 5,1 5,2 3,9 0,5 0 Jan Febr Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2006 2019 2020 2021 2022 2023
Slide 7: Commercial Strategy: Enhancing Our Core Business
COMMERCIAL STRATEGY Enhancing our core business GENERATION VS COMMITMENTS LNG (ADP) (1) – firm 1 supply contract TWh Gas 12 Coal 10 Wind FLEXIBLE GAS Argentine NG – firm 2 8 CONTRACTS Solar supply contract 6 Hydro 4 Regulated PPA Unregulated 2 PPA 3 Gas purchases in the spot 0 market 2019 2020 2021
Slide 8: Commercial Strategy: Enhancing Our Core Business
COMMERCIAL STRATEGY Enhancing our core business 1. SEGMENTATION BY INDUSTRY (1) 3. RENEWABLE CERTIFICATES EVOLUTION 7,772 4,490 GWh 1,391 GWh 972 GWh 107 690 GWh 92 GWh 79 62 85 N° of Clients Retail GWh 46 12 Health Agriculture 2018 2019 2020 2021 2022 2023 2. PPAs PROFILE 4. ENERGY SERVICES Regulat
Slide 9: Commercial Strategy: New Contracts Signed
COMMERCIAL STRATEGY New contracts signed NEW POWER/CAPACITY 2023 - 2024 2024-2025: 230 GWh per year 2026-2035: 650 GWh per year 3.5 78 2024-2035: 280 GWh per year Chile TWh 2025-2040: 912 GWh per year New energy Supply per year contracts 2026-2040: 1,100 GWh per year 363 20 2023: 121 MW per year Per
Slide 10: Pipeline of Projects: 24/7 Renewable Energy
PIPELINE OF PROJECTS 24/7 Renewable Energy INTI PACHA HORIZONTE 480 MW 2,568 MW 1, 2 & 3 Preliminary Prefeasibility (1) 816 MW PROGRESS studies 925 MW PV + 400 - 500 MW STAGE 816 MW 1,731 MW Construction Environmentally STORAGE approved CELDA SOLAR DIEGO DE ALMAGRO 420 MW PV 200 MW STORAGE + 240 MW
Slide 11: Pipeline of Projects: Power Matrix Diversification
PIPELINE OF PROJECTS Power Matrix Diversification 900 Target of new renewable capacity MW installed by 2030 BAYÓVAR 250/410 MW NAYLAMP 238 MW PROGRESS Preliminary Prefeasibility STAGE studies 1.4 GW 0.4 GW PAMPA Wind farms PV plants 300 MW TRES QUEBRADAS 238 MW ALGARROBAL 250/150 MW Note: Figure as
Slide 12: Horizonte Wind Farm
PIPELINE OF PROJECTS Horizonte Wind Farm Estimated commissioning 76% total progress year 2024 Horizonte 44 turbines 816 MW Out of 140 Total installed each with capacity 5.83 MW of installed capacity CAPEX (US$ million) 627 405 192 30 2021 2022 2023 Total For more details go to Annexes slide 31. 12 N
Slide 13: Expanding Our Limits: International Investment Thesis
EXPANDING OUR LIMITS International Investment Thesis Incorporating new geographies would allow Colbun to expand its growth potential and diversify its portfolio SCALE DIVERSIFICATION SELECTION CRITERIA The electricity industry is New geographies would ✓ Regulatory framework a business that requires
Slide 14: New Businesses: Infrastructure Projects
NEW BUSINESSES Infrastructure Projects WATER GREEN HYDROGEN 1 Context PARTNERS Pilot programs Developing FenixH2 Generator High water demand for industrial processes The continental water supply will be increasingly limited Ammonia export projects North of Chile Need for solutions in water infrastru
Slide 15: ESG Goals
ESG GOALS Developing a sustainable business in the long term ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ For more details go to Annexes slide 36. 15
Slide 16: Key Financial Figures: Overview
KEY FINANCIAL FIGURES Overview OPERATING INCOME 2023 EBITDA 2023 INTERNATIONAL RATINGS US$2,004 mm US$714 mm Baa2 BBB+ BBB US$615 mm US$98 mm BBB- BBB- Moodys Fitch S&P 16 NET INCOME 2023 CAPEX 2023 US$404 mm US$522 mm DIVIDEND POLICY NET DEBT / EBITDA CASH 50% US$310 mm distributed 1.5 X US$1,031 m
Slide 17: Key Financial Figures: Debt Structure Snapshot
KEY FINANCIAL FIGURES Debt structure snapshot AMORTIZATION STRUCTURE (US$ million) 700 600 600 Fenix 500 500 500 Colbun 400 300 200 168 160 100 24 16 18 0 2024 2025 2026 2027 2028 2029 2030 2031 2032 FINANCIAL DEBT PROFILE US$1,986 mm 4 bonds and 1 bank loan 3.8% Interest Rate average US$1,760 milli
Slide 18: Key Financial Figures: Last Year Results
KEY FINANCIAL FIGURES Last year results EBITDA CHILE 2022-2023 VARIATION (US$ million) 800 658 52 17 14 615 (132) (17) (40) 600 63 400 200 0 Dec-22 Net Position Regulated Diesel Gas Coal Depreciation Others Dec-23 in the Spot Customers Consumption Consumption Consumption and Market Sales Amortizatio
Slide 19: Disclaimer & Contact Information
DISCLAIMER & CONTACT INFORMATION ✓ This document provides information about Colbun S.A. In no case this document constitutes a comprehensive analysis of the financial, production and sales situation INVESTOR RELATIONS of the company. TEAM CONTACT ✓ To evaluate whether to purchase or sell securities
Slide 20: Corporate Presentation
CORPORATE PRESENTATION L a r r a í n V i a l 1 8 th A n n u a l C o n f e r e n c e - M a r c h 2 0 2 4
Slide 21: About Us: Board of Director's Highlights
ABOUT US Board of Director's highlights Members Hernán Rodríguez Bernardo Vivianne María Emilia Rodrigo Donoso Wilson Larraín Matte Blanlot Soza Correa Pérez Munita Chairman Vice-Chairman Independent Marcela Angulo Francisco Matte Juan Carlos Franco Bozzalla González Izquierdo Altmann Martín Trabucc
Slide 22: Chile's Projects Under Construction or Environmental Assessment
MARKET CONDITIONS Chile's projects under construction or under environmental studies assessment Curicó Arica Puerto Montt Maitencillo North Zone Central Zone Austral Zone 34,191 MW South Zone (Arica to Maitencillo) (Maitencillo to Curicó) (Curicó to Puerto Montt) (Puerto Montt to the South) 10,590 M
Slide 23: Peru's Projects Under Construction or Environmental Assessment
MARKET CONDITIONS Peru's projects under construction or under environmental studies assessment North Zone 0 MW Piura 3,486 MW Lambayeque Cajamarca Central Zone La Libertad Ancash 425 MW 3,564 MW 5,953 MW Lima South Zone 7,398 MW Ica 5,528 MW TOTAL: 13,351 MW 348 MW Arequipa Note: All figures as of D
Slide 24: Thermal Generation in Chile
MARKET CONDITIONS Thermal generation in Chile THERMAL GENERATION (TWh) COLBUN’S PPAs BACKED BY SEN 2022 SELF/OWN GENERATION (TWh) 4,5 Colbun 2022 Colbun 2023 4 3,5 14 3 12 2,5 Gas Coal 2 10 Wind 1,5 Solar 8 1 Hydro 0,5 6 Regulated PPA 0 Unregulated PPA Jan Febr Mar Apr May Jun Jul Aug Sep Oct Nov De
Slide 25: System's Decoupling
MARKET CONDITIONS System’s decoupling Colbun’s power CONGESTED TRANSMISSION injection and INFRASTRUCTURE withdrawal by zone Crucero Average hourly marginal cost 2023 USD/MWh Diego de Almagro Surplus Alto Jahuel Pan de Azúcar Balanced Cardones Polpaico Deficit Polpaico Alto Jahuel Puerto Montt Itahue
Slide 26: Fossil Fuel Prices
MARKET CONDITIONS Fossil fuel prices BRENT: OIL (USD/bbl) 84 HISTORICAL AND FORWARD CURVE Brent Brent fwd API4 API4 fwd 2019 2020 2021 2022 2023 API4: COAL (USD/ton) 2019 2020 2021 2022 2023 2024 2025 2026 2027 104 2019 2020 2021 2022 2023 26 Note: All figures as of Dec23.
Slide 27: Hydrological Conditions in Chile
MARKET CONDITIONS Hydrological conditions in Chile COLBUN RESERVOIR LEVEL AND ACCUMULATED ENERGY (m.a.s.l & GWh) 674 Colbun Reservoir Accumulated Energy m.a.s.l GWh Level HISTORICAL COLBUN S.A HYDRO GENERATION (GWh/day) Average Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 27 Note: All figures as
Slide 28: Key Financial Figures: Overview
KEY FINANCIAL FIGURES Overview 1. CASH POSITION (US$ million) 2. CAPEX (US$ million) 522 1.419 1.155 967 1.031 274 797 254 113 88 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 3. DIVIDENDS (US$ million) 4. DEBT/EBITDA & NET DEBT/EBITDA (x) 1.073 Debt/EBITDA Net Debt/EBITDA 339 310 253 223 2019 2
Slide 29: Key Financial Figures: EBITDA & Net Income
KEY FINANCIAL FIGURES Overview 1. EBITDA & EBITDA MG (US$ million & %) 2. NET INCOME (US$ million) EBITDA EBITDA Mg 625 683 520 763 714 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 29 Note: All figures as of Dec23.
Slide 30: Diego de Almagro
PIPELINE OF PROJECTS Attractive portfolio of growth options Diego de Almagro KEY INDICATORS Location: Atacama Region 30 Note: All figures as of Jan24.
Slide 31: Horizonte Wind Farm Project
PIPELINE OF PROJECTS Attractive portfolio of growth options Horizonte Wind Farm Project KEY INDICATORS 31 Note: All figures as of Jan24.
Slide 32: Intipacha
PIPELINE OF PROJECTS Attractive portfolio of growth options Intipacha KEY INDICATORS 32 Note: All figures as of Jan24.
Slide 33: Jardín Solar
PIPELINE OF PROJECTS Attractive portfolio of growth options Jardín Solar Location: Tarapacá Region KEY INDICATORS 33 Note: All figures as of Jan24.
Slide 34: Junquillos
PIPELINE OF PROJECTS Attractive portfolio of growth options Junquillos KEY INDICATORS 34 Note: All figures as of Jan24.
Slide 35: Celda Solar
PIPELINE OF PROJECTS Attractive portfolio of growth options Location: Celda Solar Arica Region KEY INDICATORS 35 Note: All figures as of Jan24.
Slide 36: ESG Goals
ESG GOALS Developing a sustainable business in the long term ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 36