Minera Valparaiso S.a. · BCS:MINERA
Minera Valparaiso — Q2 2023 Earnings Presentation
37 slides from Minera Valparaiso's earnings presentation, Oct 20, 2023
Slide 1: Second Quarter 2023 Results
aN LN INERA VALPARAISO Minera Valparaiso S.A. Second Quarter 2023 Results June, 2023 Santiago,Chile == ———————S—S—S(ctober20%,2023 = CONFIDENTIAL,
Slide 2: Table of Contents
2-4Quarter 2023 Results TABLE OF CONTENTS 1. Minera V 2. Corpora 3. 2942023 4. Highligh 5. Corpora alparaiso at a glance e Governance Quarterly Results s 202023 e Strategy 6. Performance 7. Financia 8. Annexes Position MINERA VALPARAISO Santiago, Chile 2 October 20, 2023 CONFIDENTIAL
Slide 3: Minera Valparaiso at a Glance
Minera Valparaiso at a Glance MINERA VALPARAISO, ————“— Santiago, Chile October20",2023 == CONFIDENTIAL
Slide 4: Minera Valparaiso: Investment Company of the Matte Group
2-4Quarter 2023 Results ~ Minera Valparaiso Investment Company of the Matte Group Company Description = Minera Valparaiso is a long-standing investment company that carries out its main activities and businesses in the fields of Energy, Materials, Finance, and Telecommunications = Itstands out for i
Slide 5: Main Subsidiaries and Affiliates of the Matte Group
2-4Quarter 2023 Results Main Subsidiaries and Affiliates of the Matte Group cmpc™ Ccolbun spicecor? yopean Cel Aimendras GC Ownership! 55.7% 50.0% 98.1% 454% 32.5% 10.6% Through Minera 19.2% 48.2% 6.7% 0.0% 8.5% 6.5% Mkt Cap* $4,779 $2,727 $1,435 $178 $563 $9,351 Total Assets* $17,270 $6,599 $21,889
Slide 6: Corporate Governance
Corporate Governance MINERA VALPARAISO, ————“— Santiago, Chile October20",2023 == CONFIDENTIAL
Slide 7: Minera Valparaiso S.A. Board of Directors
2-4Quarter 2023 Results ~ Minera Valparaiso S.A. Board of Directors Joaquin Izcue Elgart Chairman. Joaquin Izcue studied Business Administration at the Pontificia Universidad Catolica de Chile. In 2017 was appointed CEO of Forestal O'Higgins S A after a successful careerin the banking industry at Ba
Slide 8: Management Team
2rd Quarter 2023 Results » Management Team Organizational structure Investment Management! Development and Strategy Management! Tax and Legal Board of Management! Directors Accounting Management! Corporate Comptrolle! Operations and Technology Management! Head of Administration and Personnel! ‘1 Fun
Slide 9: 2nd 2023 Quarter Results
2nd 2023 Quarter Results MINERA VALPARAISO, ————“— Santiago, Chile October20",2023 == CONFIDENTIAL
Slide 10: EBITDA Margin
EBITDA Margin ▪ 51% 53% 50% 47% 44% 47% 41% 39% 42% 35% 35% ▪ 30% 260 25% 20% 205 192 172 174 178 ▪ 154 167 153 136 146 146 135 71 ▪ ▪ 1Q '20 2Q '20 3Q '20 4Q '20 1Q '21 2Q '21 3Q '21 4Q '21 1Q '22 2Q '22 3Q '22 4Q '22 1Q '23 2Q '23 72 78 77 76 66 68 54 40 42 41 28 18 10 -29 1Q '20 2Q '20 3Q '20 4Q
Slide 11: Highlights 2Q 2023
Highlights 202023 MINERA VALPARAISO Santiago, Chile October 20, 2023 CONFIDENTIAL
Slide 12: Period Highlights: Colbun and BICE Corp
2rd Quarter 2023 Results Period Highlights 1. Colbun = Transmission Sale: Colbun received an additional US$ 116 million due to the final price adjustment of the share sale to Alfa Desarrollo SpA. = Dividend pay out of US$ 140 million: US$ 65 million definitive and US$ 75 million additional dividends
Slide 13: Period Highlights: CMPC
24Quarter 2023 Results ~ Period Highlights r) 3. CMPC cmpc. = S&P Global upgraded the Company's risk rating in April 2023 from BBB- to BBB due to an improvementin its financial position. = Bio CMPC: As of June 2023, US$ 455 mm has been invested, the project is expected to be completed by year end (8
Slide 14: Corporate Strategy
Corporate Strategy MINERA VALPARAISO, ————“— Santiago, Chile October20",2023 == CONFIDENTIAL
Slide 15: Our Strategy is Defined in 6 Key Elements
2-4Quarter 2023 Results » Corporate Strategy Our Strategy is defined in 6 Key Elements Capital Sector Structure Diversification Portfolio LLeritg) Wenn Management Growth Trends Environmental Core Social Business Governance Expansion MINERA VALPARAISO Santiago, Chile October 20", 2023 CONFIDENTIAL 15
Slide 16: Portfolio by sector
43.61% 40.15% Pulp & Paper Fuel Dx Finance Energy 10.29% Material Refining 3.16% 1.35% Pulp & Paper Fuel Dx Finance Energy Material Refining 16
Slide 17: Sector diversification and sales by geography
24Quarter 2023 Results ~ Corporate Strategy Sector diversification provides a unique quality, value protection and cashflow Sales By Geography Europe: 3% Portfolio Genie USA8% China: 3% Capital Structure circum Asset Value oo Trends Asia ex. China: 3% Environmental Social Core Business Other Latam:
Slide 18: Global and local economy growth and long term trends
24 Quarter 2023 Results » Corporate Strategy Global and local economy growth, plus evolutionary long term growth trends v_ Increasing GDP Per capita ae Y Global Consumption Capital Sector cm pc Y Globaltrade Sane Diversification : v_ Packaging away from plastics v Power generation using renewables -
Slide 19: Innovative, forward-looking and stronger business lines
2-4Quarter 2023 Results ~ Corporate Strategy Innovative, forward-looking and stronger business lines in the region Ccolbun = BICECORP Sector Capital Structure Diversification I l I | | | || | f — ) | I | 1 | 1 | I Portfolio oe | | | i aa Hieeuren Asset Value Grease ! | ! efizity ! @ (0) | ever | | |
Slide 20: Sustainable growth and stakeholder relationships
24Quarter 2023 Results Corporate Strategy Sustainable growth and active and transparent relationships with stakeholders are key to the strategy Sector Capital Diversification Structure Long Term Growth Trends Portfolio Purr §6=6» Asset Value Environmental Social Core Business Governance Expansion cm
Slide 21: Profound knowledge of assets, markets and portfolio management
24Quarter 2023 Results we Corporate Strategy Profound knowledge of assets, markets and portfolio management, unlocking value 1990 - 2000 1970-1980 * BICE Vida is founded = BICEV|IDA + Chilauinta Acquires 18.99% @) 2010 - Today = 55% control stake in CMPC & Capital oe is reached cmpc of Entel * Pucrt
Slide 22: Consistent, prudent and flexible capital structure
24Quarter 2023 Results ~ Corporate Strategy Consistent, prudent and flexible capital structure with channels built into markets wv cmpc™ €colbun =Zeicecore — Cash (US$mn) $836 $950 $959 Diversification Net Debt/ A EBITDA LTM 2.29x 148x N.84x! # Bonds 13 4 3 Portfolio (Lelasjueam Stun = Asset Value G
Slide 23: Performance
Performance MINERA VALPARAISO Santiago, Chile October 20", 2023 CONFIDENTIAL
Slide 24: Minera Valparaíso IPSA Index
Minera Valparaíso IPSA Index 2000 1500 1000 500 0 3,395 2,971 2,339 2,508 2,603 2,184 2,056 2,082 3Q '21 4Q '21 1Q '22 2Q '22 3Q '22 4Q '22 1Q '23 2Q '23 24
Slide 25: Holding Discount, Market Value and NAV
2-4 Quarter 2023 Results - Holding Discount 9 Market Value NAV Market Value Minera Stake (%) (USD mm) (USD mm) Valparaiso (USD mm) 32.6% (discount) CE coibun cmpc® LS) almendral = BICE CORP SC Ootymert’ Net Debt (97) MINERA VALPARAISO Santiago, Chile October 20H", 2023 CONFIDENTIAL, 25
Slide 26: Holding discount history
52.1% 49.1% 46.6% 45.6% 46.3% 46.3% 39.1% 39.7% 40.7% 39.3% 30.0% 31.0% 31.6% 32.6% 25.5% 18.7% 16.9% 12.7% 6.3% 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 26
Slide 27: Dividends received by holding
$1,000 COLBUN CMPC $800 $773 COPEC $97 BICECORP $600 ALMENDRAL MOLYMET $400 PUERTO $250 $601 $226 ENELAM $199 $200 $39 $143 $23 $130 $95 ENELCHILE $3 $143 $168 $40 $117 $74 $67 Total Minera $0 2018 2019 2020 2021 2022 YTD 27
Slide 28: Regular and eventual dividends
Regular Eventual $1,200 $1,000 $800 $696 $600 $400 $200 $195 $397 $167 $232 $256 $0 $86 2018 2019 2020 2021 2022 28
Slide 29: Financial Position
Financial Position MINERA VALPARAISO Santiago, Chile October 20", 2023 CONFIDENTIAL
Slide 30: Financing Strategy
2-4 Quarter 2023 Results » Financing Strategy We follow 5 main indicators! a Net Debt to Non- Net Debt to LTM Dividends to : . | Debt to NAV | | LTM Dividends | | Financial Expenses? | | Controlling Asset | Net Debt to Equity* | Minera Valparaiso | 0.16x | 1.61x | | 10.77x | | 0.64x | | 0.12x | (Cov
Slide 31: Debt composition and maturities
Current Derivative 3.3% financial U.F. Colbún instruments 8.8% 70.6% 0.9% Euro 0.5% Bonds CLP 82.0% Loans with 9.6% financial Non-current institutions Dollar Minera Valparaíso Fénix 96.7% 17.1% 81.2% 18.5% 10.9% Local Bonds Banks Colbún Fenix 712 668 500 260 160 112 14 16 18 2023 2024 2025 2026 2027
Slide 32: Financial indicators over time
0.11x 0.12x 0.16x 0.06x 0.06x 0.05x 0.05x 0.13x 0.14x 0.04x 0.10x 0.10x 0.10x 0.10x 0.07x -0.04x 3Q '21 4Q '21 1Q '22 2Q '22 3Q '22 4Q '22 1Q '23 2Q '23 3Q '21 4Q '21 1Q '22 2Q '22 3Q '22 4Q '22 1Q '23 2Q '23 1.56x 1.61x 0.76x 0.64x 0.51x 0.26x 0.28x 0.26x 0.19x 0.27x 0.26x 0.25x 0.23x 0.24x -0.21x
Slide 33: Annexes
Annexes MINERA VALPARAISO Santiago, Chile October 20, 2023 CONFIDENTIAL
Slide 34: Minera Valparaiso's Investment Portfolio
2-4Quarter 2023 Results Minera Valparaiso’s Investment Portfolio Production and marketing of wood and cellulose products, being the 3rd largest cellulose producer in the market. Industrial operations in 8 countries in Latin America Financial holding company with presence in commercial banking, insur
Slide 35: Consolidated Income Statement (US$ millions)
Consolidated Income Statement (US$ millions) jun-23 jun-22 Operating Revenues 1.101 931 Operating Costs (694) (564) Gross Profit 407 367 Gross Margin (%) 37% 39% Administrative Expenses (182) (178) Other Gains (Losses) 106 (12) Operating Gains (Losses) 331 177 Operating Margin (%) 30% 19% Financial
Slide 36: Consolidated Balance Sheet (US$ millions)
Consolidated Balance Sheet (US$ millions) jun-23 dic-22 Consolidated Balance Sheet (US$ millions) jun-23 dic-22 Assets Liabilities Cash and Cash Equivalents 293 217 Other current financial liabilities 81 96 Other current financial assets 680 954 Lease liabilities, current 11 11 Other current non fin
Slide 37: Investor Relations
aN iN MINERA VALPARAISO Investor Relations: ir@minera.cl Santiago, Chile October 20%, 2023 CONFIDENTIAL