Colbun Sa · BCS:COLBUN
Colbun Sa — Investor Day (December 2024)
51 slides from Colbun Sa's investor day presentation, Dec 5, 2024
Slide 1: Investor Day December 5th 2024
Slide 2: Welcome Remarks
1 . WELCOME REMARKS Hernán Rodriguez Chairman of the Board 2
Slide 3: Welcome Remarks – Chairman of the Board
WELCOME REMARKS Hernán Rodriguez – Chairman of the Board Vector icono de cámara de video 442172 Vector en Vecteezy CLICK HERE TO WATCH THE VIDEO 3
Slide 4: Agenda
AGENDA 1. WELCOME REMARKS 2 . POWER SECTOR OVERVIEW 3. SUSTAINABILITY INITIATIVES 4 . STRATEGIC AGENDA & COLBUN’S OUTLOOK 4
Slide 5: Power Sector Overview
2 . POWER SECTOR OVERVIEW Juan Eduardo Vásquez Chief Energy Officer 5
Slide 6: Chilean System's Operation During 2024
POWER SECTOR OVERVIEW Chilean System’s Operation During 2024 HYDROLOGY MARGINAL GREATER FLEXIBILITY COSTS CHALLENGES 6
Slide 7: National Electric System's Hydrology
POWER SECTOR OVERVIEW National Electric System’s Hydrology SEN hydroelectric evolution Dec 2nd, 2021 Dec 2nd, 2023 Dec 2nd, 2024 (TWh/year) +14% 28 27 24 21 21 20 16 2006 2019 2020 2021 2022 2023 2024 E 2024 has presented favorable hydroelectric The current thaw season projects a strong conditions c
Slide 8: Colbun's Hydroelectric Generation
POWER SECTOR OVERVIEW Colbun’s Hydroelectric Generation Colbun’s hydroelectric generation Colbun’s hydroelectric generation GWh/day (GWh/day) (TWh/year) 35 + 0.3 TWh 30 28 6.9 7.2 25 24 24 6.8 25 22 22 20 19 20 18 5.6 20 17 5.1 5.2 15 13 15 3.9 10 5 0 Jan Feb Mar Apr May Jun Jul Agu Sep Oct Nov Dec
Slide 9: Marginal costs
POWER SECTOR OVERVIEW Marginal costs 2 TWh/year 24 hr Crucero Gx 0.9 0.6 0.3 Average hourly marginal costs Jan24 - Sep24 1 (USD/MWh) PPAs 4.4 1.8 2.6 (USD/MWh) 2024: 52 Balance -3.5 -1.2 -2.3 Early morning Day Night 2023: 77 120 TWh/year 24 hr 2 Gx 10.0 3.4 6.6 100 Alto Jahuel PPAs 5.7 2.6 3.1 (USD/
Slide 10: Increased challenges for the system's power plants
POWER SECTOR OVERVIEW Increased challenges for the system's power plants SEN hourly capacity generation BESS 12,000 (MW) Diesel Generation 10,000 Others Variability 8,000 Reservoir 6,000 Solar 4,000 Gas 2,000 Coal Ramps (+/-) - Wind Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 Run-of-the-river Unitary systemic co
Slide 11: Colbun's generation flexibility
POWER SECTOR OVERVIEW Colbun’s generation flexibility Colbun’s PPAs backed by its own LNG (ADP)1 generation Long-term contract for 1 shipments from the (TWh) international market. 11.6 11.9 Argentine NG 10.9 Gas Firm and interruptible 10.3 10.2 9.8 Fossil fuels to 2 contracts with a supply that Coal
Slide 12: System's thermal power plants have continued to be highly demanded
POWER SECTOR OVERVIEW System's thermal power plants have continued to be highly demanded Ensuring generation units availability and reliability. 2.2 GW 9 power plants 1.9 GW 5 power plants Maintenance optimization considering Nehuenco 0.8 GW 5 power plants the system’s and Colbun’s conditions. Start
Slide 13: SEN available supply by 2025 (MW)
POWER SECTOR OVERVIEW SEN available supply by 2025 (MW) Renewable Average capacity by Demand Balance 2025 (A) (B) (A – B) 4,421 8,439 49 12,909 3,334 +9,575 North 1,457 175 2,241 1,465 3,881 3,720 +161 Center 118 1,902 1,330 5,890 9,122 2,558 +6,564 South 125 6,498 12,010 7,404 25,912 9,612 +16,300
Slide 14: Regulatory Framework Challenges
POWER SECTOR OVERVIEW Regulatory Framework Challenges Permitting Decarbonization Climate Change Green Hydrogen Bidding market Distribution Plan Adaptation and Desalination 14
Slide 15: Sustainability Initiatives
3 . SUSTAINABILITY INITIATIVES Ana Luisa Vergara Head of Sustainability 15
Slide 16: Carbon Footprint
SUSTAINABILITY INICIATIVES Carbon Footprint Challenge: Develop our pipeline of projects. 2018 2024 E 2025 2030 0.323 CO2/MWh 0.228 CO2/MWh 0.226 CO2/MWh 0.194 CO2/MWh (-29%) (-30%) (-40%) o Positive impact due to a better o Energy efficiency initiatives in Santa hydrology, the acquisition of Totoral
Slide 17: Water Footprint
SUSTAINABILITY INICIATIVES Water Footprint Challenge: Further optimization & desalination backup for Nehuenco. 2018 Operational water 2024 E 2025 2030 0.304 m3/MWh 0.180 m3/MWh (-40%) 0.167 m3/MWh (-45%) 2018 Non operational water TODAY 2025 246 Mm3 90 Mm3 (-65%) 146 Mm3 (-40%) o Reverse osmosis pla
Slide 18: Waste Footprint
SUSTAINABILITY INICIATIVES Waste Footprint Challenge: Reduce total waste volume, focusing on our supply chain. 2017-2020 Ashes recovery 2024 E 2025 61% 95% 98% Recovered non 2017-2020 ashes waste TODAY 2025 2030 9% 42% 35% 50% o Circular economy processes with cement o ~550 tons wood packaging recov
Slide 19: Biodiversity
SUSTAINABILITY INICIATIVES Biodiversity Challenge: Implement a new conservation project (2025). o Invited to present as a leading company in COP 16 1. o 60% threatened vertebrate species under monitoring in the surroundings of our o Rincón del Sur: native forest conservation area, with facilities in
Slide 20: People
SUSTAINABILITY INICIATIVES People Challenge: Attract and retain women in male-oriented fields. 2018 Women in total work force 2024 E 2025 2030 18% 24% 25% 30% 2018 Women in leadership positions 2024 E 2025 2030 14% 19% 20% 25% o Women mentoring program. o Women trainee program in male- oriented fiel
Slide 21: Communities
SUSTAINABILITY INICIATIVES Communities Challenge: Improve communities' recognition of the contribution we make to the local development and increase impact measurement. o ~500 entrepreneurs supported through the “Energy for Entrepreneurs” program. o 10 years of Parque Angostura. o 26 community dialo
Slide 22: Communities
SUSTAINABILITY INICIATIVES Communities Challenge: Improve communities' recognition of the contribution we make to the local development and increase impact measurement Vector icono de cámara de video 442172 Vector en Vecteezy CLICK HERE TO WATCH THE VIDEO 22
Slide 23: Suppliers
SUSTAINABILITY INICIATIVES Suppliers Challenge: Strengthen our suppliers’ ESG assessment. o 38% of our suppliers are assessed in ESG during the of our selection process. suppliers 66% are SMEs o 51% of our suppliers are evaluated in ESG during the contract period. Regional o 10 days average payment
Slide 24: Strategic Agenda
4 . STRATEGIC AGENDA José Ignacio Escobar Chief Executive Officer 24
Slide 25: 2030 Strategy
STRATEGIC AGENDA 2030 Strategy PURPOSE: We transform energy, in balance with the planet to boost your projects and dreams. WE ADD VALUE TO: Shareholders, Environment, Customers, Workers, Communities, Suppliers Core business Expanding our limits New businesses Asset Renewable Customers Energy Growth
Slide 26: Core Business - Customers
STRATEGIC AGENDA Core Business - Customers PPAs contracting opportunities over the next 3 years Contracted energy 2.1 1.3 during 2024 TWh TWh With large ✓ 10 energy supply unregulated bidding processes clients for a total of 5 TWh ( 100 GWh/year) expected to be auctioned. With medium ✓ A total of 4
Slide 27: Expanding Our Limits - Energy Solutions
STRATEGIC AGENDA Expanding Our Limits - Energy Solutions ✓ A full integration was carried out between Colbun and Colbun Soluciones by Efizity. Physical and Unified channel Value proposition functional sales model: business unit Energy + integration Solutions Improve the value proposition towards our
Slide 28: Expanding Our Limits - Energy Solutions
STRATEGIC AGENDA Expanding Our Limits - Energy Solutions 10 6 6 4 3 3 EMS Operation EMS Internal LEED design Energy Energy Others & Maintenance Audit and efficiency audit construction advice 18% of the companies that are in EMS 14 MW in construction and certification processes chose Colbun as an ope
Slide 29: Expanding Our Limits - Energy Solutions
STRATEGIC AGENDA Expanding Our Limits - Energy Solutions Vector icono de cámara de video 442172 Vector en Vecteezy CLICK HERE TO WATCH THE VIDEO 29
Slide 30: Expanding our limits - Pipeline of projects
STRATEGIC AGENDA Expanding our limits - Pipeline of projects 920 MW 1,013 MW 800 MW PROGRESS 238 MW 1,598 MW PROGRESS Preliminary Preliminary Prefeasibility Prefeseability Suspended STAGE studies STAGE studies 2,983 MW 816 MW Environmentally 228 MW Construction approved FID1 1.4 GW 0.4 GW Inti Pacha
Slide 31: Horizonte Wind Farm Project
STRATEGIC AGENDA Pipeline of Projects Expanding our limits - Pipeline of projects Horizonte Wind Farm Project KEY INDICATORS Installed capacity 816 MW - 140 wind turbines Location: Taltal Net annual generation 2,450 GWh Antofagasta Region Estimated capacity factor 34.5% Land surface 8,000 ha Connect
Slide 32: Commissioning Process Horizonte WF
STRATEGIC AGENDA Pipeline of Projects Expanding our limits - Pipeline of projects Commissioning Process Horizonte WF Installed Under Commissioning In Operation 32
Slide 33: Horizonte WF Project
STRATEGIC AGENDA Pipeline of Projects Expanding our limits - Pipeline of projects Horizonte WF Project 33
Slide 34: Expanding Our Limits - BESS in depth
STRATEGIC AGENDA Expanding Our Limits - BESS in depth Battery illustration 52 Cells 8 Modules 4 Racks 4 x 6 Cubicles Cell Module Rack Cubicle BESS 280 Ah – 3.2 V 4 h x 11.65 KW 4 h x 93.2 KW 4 h x 0.373 MW 4h x 6 x 1.49 MW = 1.49 MW = 36 MWh 34
Slide 35: BESS capex composition and evolution
STRATEGIC AGENDA Expanding Our Limits - BESS in depth Capex composition Capex evolution (USD/KWh) 5% Others 10% Tx connection 20% Installation 65% Supplies (parts) -90% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Source: Bloomberg NEF, 1H2024. 35
Slide 36: Storage applications in network services
STRATEGIC AGENDA Expanding Our Limits - BESS in depth ✓ Storage systems have applications in a wide range of network services. GENERATION ANCILLARY TRANSMISSION DISTRIBUTION TRADING SERVICES o Energy o Frequency o Investment delay. o Voltage o Quality and arbitration. control. o Avoiding monitoring.
Slide 37: New Businesses - Water
STRATEGIC AGENDA New Businesses - Water DESALADORA DESALADORA PELÍCANO CHUCAO o Colbun acquired Desaladora Pelícano located in o Colbun has secured a land site on a long-term basis (San the province of Petorca. Antonio Province). o Multipurpose Project, aiming to deliver water for: o Location is str
Slide 38: New Businesses - Green Hydrogen: Fenix
STRATEGIC AGENDA New Businesses - Green Hydrogen ✓ We are developing multiple projects focused on different lines of work. FENIX COOLDOWN SYSTEM In operation o First green H2 plant in a power plant in Peru. o 114 kW photovoltaic plant. o 14 kW electrolysis system. o 35% of the energy is destined for
Slide 39: New Businesses - Green Hydrogen: Nehuenco
STRATEGIC AGENDA New Businesses - Green Hydrogen ✓ We are developing multiple projects focused on different lines of work. NEHUENCO COOLDOWN SYSTEM Under construction o 100 kW photovoltaic plant. o 97 kWh battery system. o 22 kW electrolysis system. o Storage of 30 kg of hydrogen, allowing 10 days a
Slide 40: New Businesses - Green Hydrogen: Nehuenco
STRATEGIC AGENDA New Businesses - Green Hydrogen ✓ We are developing multiple projects focused on different lines of work. NEHUENCO COOLDOWN SYSTEM 40
Slide 41: New Businesses - Green Hydrogen: Bus
STRATEGIC AGENDA New Businesses - Green Hydrogen ✓ We are developing multiple projects focused on different lines of work. FIRST GREEN H2 BUS MADE IN CHILE Upcoming launch o Construction stage is expected to be Alliances for the project’s development completed this quarter. o The bus has already car
Slide 42: New Businesses - Green Hydrogen: Export Projects
STRATEGIC AGENDA New Businesses - Green Hydrogen ✓ We are developing multiple projects focused on different lines of work. EXPORT PROJECTS Under development o Different alternatives are being analyzed to produce ammonia, for consumption in Chile and export. North Project 1 South Project 1 ✓ 6.000 ha
Slide 43: Colbun's Outlook
4. COLBUN’S OUTLOOK José Ignacio Escobar Chief Executive Officer 43
Slide 44: Consolidated EBITDA 2030 E
COLBUN’ S OUTLOOK Consolidated EBITDA 2024 2030 E 12% 11% 9% Chile 550 - 650 1,000 - 1,200 Peru MMUS$ MMUS$ Others 80% 88% STRATEGIC AGENDA 2030 Core business Expand our limits New businesses Chile and Peru Chile, Peru and other Water and Green GROWTH Renewable Pipeline of countries M&A Hydrogen SOU
Slide 45: Supply curve's evolution (2020-2024)
COLBUN’ S OUTLOOK Supply curve’s evolution (2020-2024) Expected LCOE 2020 USD/MWh Wind CAPEX ~ 1,300 Expected peak USD/kW. demand (MW) 1 CAPEX ~ 380 USD/kWh. Wind technology was more competitive than BESS. 1: On non solar hours. 45
Slide 46: Supply curve's evolution (2020-2024)
COLBUN’ S OUTLOOK Supply curve’s evolution (2020-2024) Expected LCOE 2020 2022 USD/MWh 100 90 After the pandemic we observed an increase in the capex of wind projects 80 Expected peak of ~ 20%. demand (MW) 1 70 60 Decrease in CAPEX of battery projects by ~ 20%. 50 Wind technology continues 40 to be
Slide 47: Supply curve's evolution (2020-2024)
COLBUN’ S OUTLOOK Supply curve’s evolution (2020-2024) Expected LCOE 2020 2022 2024 USD/MWh Complete curve flattens. 100 90 Wind projects continue to 80 Expected peak become more expensive, demand (MW) 1 capex increasing by ~ 15%. 70 60 BESS capex decrease by ~ 25%. 50 40 BESS outperforms the vast m
Slide 48: Supply curve's evolution (2020-2024)
COLBUN’ S OUTLOOK Supply curve’s evolution (2020-2024) Expected LCOE 2020 2022 2024 OUR PIPELINE OF USD/MWh PROYECTS 100 90 80 Expected peak demand (MW) 1 2.0 GW 70 60 2.4 GW 50 2.4 GW 40 30 20 0 5 10 15 20 25 30 35 1: On non solar hours. 48
Slide 49: Renewable development progress in Chile 2025-2030
COLBUN’ S OUTLOOK Renewable development progress in Chile 2025-2030 INVESTMENT ADDITIONAL INSTALLED INSTALLED CAPEX CAPACITY CAPACITY (%) 2024 2030 US$ 1,500 – 1,800 mm 2.0 GW 6% 15% 7% 28% 4% Generation Transmission Generation Transmission 43% 3.6 5.6 35% 60% 5% 44% 60% 51% 40% 2½x GW GW 500 kV 24%
Slide 50: Growth Strategy
COLBUN’ S OUTLOOK Growth Strategy Our hydroelectric capacity is a key complement to renewable energy from variable sources for the 24/7 renewable PPAs supply. We have a diversified pipeline of projects that are among the most competitive of the country. Colbun has a solid financial position to suppo
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