Colbun Sa · BCS:COLBUN

Colbun Sa — BofAML Emerging Markets Corporate Credit Conference 2017

26 slides from Colbun Sa's conference presentation, May 30, 2017

  1. Slide 1: Company Presentation

    BofAML EMERGING MARKETS CORPORATE CREDIT CONFERENCE COMPANY PRESENTATION MAY 2017

  2. Slide 2: Agenda

    AGENDA 1. Company overview 2. Market overview 3. Operations in Chile & Peru 4. Growth opportunities 2

  3. Slide 3: Company Overview

    € Colbun MEJOR ENERGIA 1. COMPANY OVERVIEW

  4. Slide 4: Leading position in Chile & Peru

    Company overview Leading position in Chile & Peru THE ASSETS Installed Capacity Market Share1 3,852 MW 21% / 7% 3,282 MW / 570 MW Power-Plants Transmission Lines 24 ~900 km 23 / 1 KEY FINANCIALS Rating EBITDA LTM Total Assets BBB US$ 6.8 bn US$586 mm Fitch US$535 mm / US$51 mm Cash Net Debt / EBITDA

  5. Slide 5: Substantial growth over the last years

    Company overview Substantial growth over the last 10 years 1 NUMBER OF EMPLOYEES. (N°) 2 INSTALLED CAPACITY. (MW) 3,852 1,102 2,515 535 2007 Colbún Fenix 2016 2007 Colbún Fenix 2016 1,011 91 3,282 570 N° OF EMPLOYEES 2016 MW OF INSTALLED CAPACITY 2016 5

  6. Slide 6: Colbún Chile: Company Overview

    Overview Colbún Chile: Company Overview 1 TOTAL INSTALLED CAPACITY. (MW) 2 GENERATION LTM. (GWh) Coal 350 Hydro 4,568 Coal Hydro 2,542 Diesel 3,282 1,597 11,246 568 GWh MW Diesel CCGT 355 767 Gas 3,683 3 CONTRACTED ENERGY SALES LTM. (GWh) 4 REVENUES FROM CONTRACTED SALES LTM. (US$ million) Unregulat

  7. Slide 7: Fenix Power: Most efficient CCGT in Peru

    Company overview Fenix Power: Most efficient CCGT in Peru 1 1 DESCRIPTION. 2 OWNERSHIP. (%) ADIA 36% Colbún CCGT 570 MW 51% Most efficient CCGT Gross installed capacity in Peru1 Sigma 4,4 TWh 13% GE Turbines Expected annual generation 2 gas turbines (190 MW each) + 1 steam turbine 7% (190 MW) Market

  8. Slide 8: Market Overview

    EK colbun K colbun JEJOR ENERGIA MARKET OVERVIEW

  9. Slide 9: Driest hydrological year of the past 6 years

    Market overview Driest hydrological year of the past 6 years 1 COLBÚN´S HYDRO GENERATION. (GWh) 3 ACCUMULATED RAINFALLS. (mm) 7,000 Aconcagua (210 MW) Average 2016 2017 Angostura’s Year 6,000 commisioning 103 Armerillo (631 MW) 5,000 Average 2016 2017 Year 4,568 603 4,000 2011 2012 2013 2014 2015 20

  10. Slide 10: Market Overview: generation matrix and demand growth

    Overview Market Overview 1 GENERATION MATRIX LTM. (%) 15% 5% 3% Hydro 33% 2% Coal 12,772 MW Natural Gas 54,118 48,325 46% (SEIN) Diesel 20% GWh GWh Others 46% 30% 2 DEMAND GROWTH. (12 month average %) 17,399 MW (SIC) 12% SIC SEIN 10% 8% 6% 5.9% 4% 2% 1.4% 0% Sources: Coordinador Eléctrico Nacional S

  11. Slide 11: Marginal costs in Chile and Peru

    Market overview Marginal costs in Chile and Peru 1 MARGINAL COST IN SIC & SEIN. (US$ / MWh) 250 Mg Cost SIC Mg Cost SEIN 200 150 100 85 50 11 0  Marginal costs in the SIC have fallen in the last years, mainly due to the entrance of NCRE, the drop in commodity prices and to the sluggish demand.  Ma

  12. Slide 12: Decreasing prices in the last regulated auctions in Chile

    Market overview Decreasing prices in the last regulated auctions in Chile 160 140 120 Avg. Awarded Price 100 (US$/MWh) 80 60 40 20 0 Year 2013 2014 2015 2016 Energy (TWh) 4.7 12.0 1.2 12.5 Avg. Awarded Price (US$/MWh) 126 108 79 48 Supply starting 2016/2019 2016/2019 2023 2023 Duration (years) 15 15

  13. Slide 13: Operations in Chile & Peru

    3. OPERATIONS IN CHILE & PERU 13

  14. Slide 14: Balanced commercial position in Chile

    Operations in Chile & Peru Balanced commercial position in Chile CONTRACTUAL COMMITTMENTS VS GENERATION. (TWh) TWh 14 50% 0,5 0,2 45% 12 0,5 3.0 0,3 0,4 40% 2,2 3.4 10 35% 3.2 4.4 3.8 3.6 4.4 4.5 3.7 4.5 8 2.2 2.9 2.6 30% 2.4 25% 6 1.9 2.6 2.5 2.5 20% 4 15% 6.9 7.2 6.7 7.2 6.5 6.6 6.5 6.5 5.2 10% 2

  15. Slide 15: High quality clients in Chile

    Operations in Chile & Peru High quality clients In Chile 1 SALES BY TYPE OF CUSTOMER. (%) 2 AVERAGE MONOMIC PRICE 1. (US$/MWh)  Long-term energy supply 150 Regulated Customers contracts with 130 Unregulated Customers creditworthy counterparties. 110  Diversified portfolio of 90 customers. Regulate

  16. Slide 16: Contract renewal opportunities in Chile

    Operations in Chile & Peru Contract renewal opportunities in Chile 1 UPCOMING REGULATED AUCTIONS 1. 22.7 TWh 2.2 7.0 9.0 4.5 TWh * TWh TWh TWh Year 2017 2018 2019 2020 Supply starting 2023 2023 2024 2026 Duration (years) 20 20 20 20 2 UNREGULATED CLIENTS.  In the coming years there is a relevant am

  17. Slide 17: Ensured long-term regasification capacity and LNG supply

    Operations in Chile & Peru Ensured long-term regasification capacity and LNG supply Long-term strategy: leveraging our efficient natural gas power facilities and diversifying our supply sources; contributing to provide competitive, flexible, secure and sustainable power supply GWh 3,000 2,500 2,500

  18. Slide 18: Consolidated financial results

    Operations in Chile & Peru Consolidated financial results 1 EBITDA & EBITDA MG. (US$ million & %) 3 DEBT & NET DEBT. (US$ million) EBITDA Chile EBITDA Fenix EBITDA Mg Debt 45% 45% 50% 2,500 42% 2,236 Net Debt 600 36% 2,000 1,894 56 51 40% 1,700 1,710 1,703 1,440 30% 1,500 400 21% 1,174 1,061 1,043 1

  19. Slide 19: Consolidated debt profile

    Operations in Chile & Peru Consolidated debt profile 1 DEBT PROFILE. Banks Variable UF  Financial debt: US$1,703 mm 21% 3% 6% US$ 1,346 mm / US$ 363 mm  Avrg. Maturity: 4.8 years US$ Bonds Fixed 94%  Avrg. US$ Interest Rate: 4.9% 79% 97% 2 AMORTIZATION STRUCTURE. (US$ million) 600 532 525 Fenix L

  20. Slide 20: Growth Opportunities

    K Colbun 4, GROWTH OPPORTUNITIES

  21. Slide 21: Growth opportunities in Chile & the Region

    Growth opportunities Growth opportunities in Chile & the Region 1 SPECIAL FOCUS IN PERU AND COLOMBIA.  Growing electricity consumption  Well established regulatory framework  Diversification: - Hydrological conditions - Generation technology - Fuel access Guaiquivilo Melado - Regulation ~310 MW R

  22. Slide 22: Disclaimer and contact information

    Disclaimer And contact information  This document provides information about Colbún S.A. In no case this document constitutes a comprehensive analysis of INVESTOR RELATIONS the financial, production and sales situation of the company. TEAM CONTACT  To evaluate whether to purchase or sell securitie

  23. Slide 23: Appendix

  24. Slide 24: Solar energy transactions

    Appendix Solar energy transactions 1 SUNEDISON’S ASSETS AQUISITION  Long-term energy supply contracts with regulated customers: - 350 GWh/year - 15 years, starting 2017  Two photovoltaic solar parks in the SIC: - Olmué: 145 MW (Environmentally approved) - Santa Sofía: 57 MW (Environmental approval

  25. Slide 25: More than 50% of energy awarded to new projects in Chile bid

    Appendix More than 50% of the total energy was awarded to new projects in the last bid process in Chile  More than 50% of the total awarded energy proceed from new projects of intermittent energies.  Particular conditions of 2016’s bid process: - 6 years until supply begins. - Low performance bond

  26. Slide 26: Colbún Chile: 1Q17 company overview

    Appendix Colbún Chile: 1Q17 company overview 1 TOTAL INSTALLED CAPACITY. (MW) 2 GENERATION LTM. (GWh) Coal 350 Hydro 1,089 Coal Hydro 736 Diesel 3,282 1,597 3,169 568 GWh MW Diesel CCGT 43 767 Gas 1,301 3 CONTRACTED ENERGY SALES. (GWh) 4 REVENUES FROM CONTRACTED SALES. (US$ million) Unregulated Unre

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