Colbun Sa · BCS:COLBUN
Colbun Sa — BCI Breakfast (February 2024)
34 slides from Colbun Sa's conference presentation, February 2024
Slide 1: Corporate Presentation 4Q23 BCI Breakfast
CORPORATE PRESENTATION 4Q23 BCI Breakfast - February 2024
Slide 2: Agenda
AGENDA 1 2023 HIGHLIGHTS 2 MARKET CONDITIONS 3 KEY FINANCIAL FIGURES 4 PIPELINE OF PROJECTS
Slide 3: 2023 Highlights: Commercial Strategy
2023 HIGHLIGHTS Commercial Strategy NEW POWER/CAPACITY 2023 ✓ 2024-2025: 230 GWh per year ✓ 2026-2035: 650 1.5 76 GWh per year Chile TWh ✓ 2024-2035: 280 GWh per year New energy Supply per year contracts 1 ✓ 2025-2040: 912 GWh per year * * Note: Signed in January 2024. 1 Note: Associated to Centinel
Slide 4: 2023 Highlights: Hydrological conditions in Chile
2023 HIGHLIGHTS 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 6,9 6,8 5,6 5,1 5,2 1 3,9 0,5 0 2006 2019 2020 2021 2022 2023 Jan Febr Mar Apr May Jun Jul Aug Sep Oct Nov Dec La
Slide 5: 2023 Highlights: Thermal generation in Chile
2023 HIGHLIGHTS 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 Dec
Slide 6: 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 7: Market Conditions: Regulatory Framework
MARKET CONDITIONS Regulatory Framework LATEST CHANGES UNDER DISCUSSION 1. Price stabilization mechanism 1. Price stabilization mechanism for regulated client tariffs for regulated client tariffs Aims to avoid electricity tariffs increases PEC 3 Fund increase to US$5,500 million to regulated clients
Slide 8: Key Financial Figures: Overview
KEY FINANCIAL FIGURES Overview EBITDA 4Q23 CAPEX 4Q23 INTERNATIONAL RATINGS US$ 161 mm US$ 146 mm Baa2 BBB+ BBB US$ 137 mm US$ 24 mm BBB- BBB- EBITDA 2023 CAPEX 2023 Moodys Fitch S&P US$714 mm US$ 522 mm 8 US$ 615 mm US$ 98 mm NET DEBT / EBITDA CASH DIVIDEND POLICY 1.5 X US$1,031 mm 50% US$310 mm di
Slide 9: Key Financial Figures: Last quarter results
KEY FINANCIAL FIGURES Last quarter results EBITDA CHILE 4Q22-4Q23 VARIATION (US$ million) 300 260 (87) 200 (69) 26 (22) 8,7 137 54 100 0 4Q22 Unregulated Energy and Gas Regulated Energy and Others 4Q23 Customers Capacity Sales Consumption Customers Capacity Sales Sales Purchases Lower price associat
Slide 10: Pipeline of Projects: 24/7 Renewable Energy
PIPELINE OF PROJECTS 24/7 Renewable Energy INTI PACHA HORIZONTE 480 MW 2,594 MW 1, 2 & 3 Preliminary Prefeasibility (1) 816 MW PROGRESS studies 925 MW PV + 400 - 500 MW STAGE 816 MW 1,455 MW Construction Environmentally STORAGE approved CELDA SOLAR DIEGO DE ALMAGRO 420 MW PV 200 MW STORAGE + 240 MW
Slide 11: Pipeline of Projects: 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 26. 11 N
Slide 12: 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 of INVESTOR RELATIONS the company. TEAM CONTACT ✓ To evaluate whether to purchase or sell securities
Slide 13: Annexes
CORPORATE PRESENTATION 4Q23 BCI Breakfast - February 2024
Slide 14: About Us: Overview
ABOUT US Overview 1 INSTALLED CAPACITY (%) 45% 34% 17% 5% Thermoelectric Hydroelectric Wind (1) Solar 2 MARKET SHARE (2) Enel Kallpa 27% 19% Enel 29% Colbun 32% Engie Aes Andes 16% Electroperú Engie 14% 16% 7% Fenix Others 14% 11% 15% Others 3 OWNERSHIP (%) 50% 17% 23% 10% Matte Pension Free Angelin
Slide 15: 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 16: 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 17: Key Financial Figures: Overview
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 3. DEBT & NET DEBT (US$ million) Debt Net Debt 2019 2020 2021 2022 2023 17 Note: All figures as of Dec23.
Slide 18: 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 19: Hydro Conditions 2023
HYDRO CONDITIONS 2023 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 19 Note: All figures as of Dec23.
Slide 20: 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 21: 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 22: Market Conditions: 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 22 Note: All figures as of Dec23.
Slide 23: Market Conditions: 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 24: 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 25: Diego de Almagro
PIPELINE OF PROJECTS Attractive portfolio of growth options Diego de Almagro KEY INDICATORS Location: Atacama Region 25 Note: All figures as of Jan24.
Slide 26: Horizonte Wind Farm Project
PIPELINE OF PROJECTS Attractive portfolio of growth options Horizonte Wind Farm Project KEY INDICATORS 26 Note: All figures as of Dec23.
Slide 27: Intipacha
PIPELINE OF PROJECTS Attractive portfolio of growth options Intipacha KEY INDICATORS 27 Note: All figures as of Dec23.
Slide 28: Jardín Solar
PIPELINE OF PROJECTS Attractive portfolio of growth options Jardín Solar Location: Tarapacá Region KEY INDICATORS 28 Note: All figures as of Dec23.
Slide 29: Junquillos
PIPELINE OF PROJECTS Attractive portfolio of growth options Junquillos KEY INDICATORS 29 Note: All figures as of Dec23.
Slide 30: Celda Solar
PIPELINE OF PROJECTS Attractive portfolio of growth options Location: Celda Solar Arica Region KEY INDICATORS 30 Note: All figures as of Jan24.
Slide 31: 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 Opt
Slide 32: Our Strategy: International Investment Thesis
OUR STRATEGY 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 allow to
Slide 33: Our Strategy: New businesses
OUR STRATEGY New businesses 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 infrastructure to re
Slide 34: Developing a sustainable business in the long term
OUR STRATEGY Developing a sustainable business in the long term ESG GOALS Environmental Footprint 2030 Community ✓ Carbon footprint: >40% reduction ✓ Maintain a Promoter Score above 88 ✓ Water footprint: >45% reduction points ✓ Waste footprint: 98% ashes valorization and ✓ ESG indicators inclusion o