Colbun Sa · BCS:COLBUN

Colbun Sa — Investor Presentation (April 2015)

25 slides from Colbun Sa's investor presentation, April 2015

  1. Slide 1: Company Presentation 1Q 2015

    Company Presentation 1Q 2015 1

  2. Slide 2: Agenda

    2 AGENDA 1. SIC OVERVIEW 2. COLBÚN OVERVIEW A. OPERATIONS B. FINANCIALS C. PROJECTS 2

  3. Slide 3: Sector Segmentation

    3 SECTOR SEGMENTATION 3 SUB-SECTORS GENERATION TRANSMISSION DISTRIBUTION Regulated sectors (concessions) RELEVANT INSTITUTIONS Ministry of Energy Regulator: CNE Supervisor: SEC Coordinator: CDEC OVERVIEW OPERATIONS FINANCIALS PROJECTS

  4. Slide 4: Geographic Segmentation

    4 GEOGRAPHIC SEGMENTATION 4 SEPARATE GRIDS SING – Northern Grid SING Arica 4,146 MW - 25% 15.881 GWh - 25%  Predominantly mining activity  Mainly thermal capacity Antofagasta  ~25% of national installed capacity SIC Tal-Tal  ~25% of national electricity output SIC – Central Grid 12,690 MW - 75%

  5. Slide 5: Market Structure Generators

    5 MARKET STRUCTURE GENERATORS REGULATED UN-REGULATED SPOT CUSTOMERS CUSTOMERS MARKET DISTRIBUTION “FREE” CDEC COMPANIES CUSTOMERS Regulated Unregulated Marginal Cost/ Auction Tariffs Auction Tariffs Spot Price OVERVIEW OPERATIONS FINANCIALS PROJECTS

  6. Slide 6: Generation and Price Evolution in Chile's Central Grid

    6 GENERATION AND PRICE EVOLUTION IN CHILE’S CENTRAL GRID • Development based on hydro + competitive natural gas (+) Development based on gas turbine (diesel) • Power purchase agreements signed under fixed prices (set by (+) LNG re-gasification terminal since 2009 regulator for distribution clients )

  7. Slide 7: Agenda

    7 AGENDA 1. SIC OVERVIEW 2. COLBÚN OVERVIEW 1. OPERATIONS 2. FINANCIALS 3. PROJECTS 7

  8. Slide 8: Overview

    8 OVERVIEW Main Figures Ownership Intern. Ratings As of Mar15 (US$ million) • Fitch: BBB • Assets: 6,300 24% • Equity: 3,400 49% • S&P: BBB- 17% • Mkt Cap: 5,100 10% Local Ratings • EBITDA LTM: 510 • Fitch: A+ Matte Group Angelini Group • Net Debt: 1,071 Pension Funds Others • Humphreys: AA- OVERVIE

  9. Slide 9: High Standards of Corporate Governance

    9 HIGH STANDARDS OF CORPORATE GOVERNANCE Our Board • 2 out of 9 are independent directors • Elected every 3 years (indefinitely reelection) • 2 out of 3 independent directors in the Board Committee • 2 female members • Monthly meetings • Two annual meetings with our external auditors • No directors

  10. Slide 10: Generation Assets

    10 GENERATION ASSETS Installed capacity of 3,278 MW ~ 21% Market Share / 25% by Generation* 48% Hydro 1,589 MW 532 MW Run-of-the-river – 33% 1,057 MW Reservoir – 67% 3,278 MW 52% Thermal 1,689 MW 766 MW CCGT – 45% 342 MW Coal – 20% 581 MW Diesel – 35% (*): In 2014 OVERVIEW OPERATIONS FINANCIALS PROJ

  11. Slide 11: High Quality Clients

    11 HIGH QUALITY CLIENTS 1 2 Sales by Type of Costumer (%) Sales Volume by Customer (%) Chilectra Unregulated (BBB+/BBB+ )* Regulated 22% CGED (Local 39% Codelco A+) (A/A+) 19% 61% 29% AngloAmeric Saesa (Local an AA) Others (BBB/BBB+) 16% 5% 9% 3 4 14.000 Historic Sales by Type of Costumer (GWh) Aver

  12. Slide 12: Commercial Position

    12 COMMERCIAL POSITION 1 Contractual Sales vs. Generation (GWh) GWh 40% 546 591 12.000 11,655 10,687 546 10,998 10,935 35% 3,011 2,801 9,639 2,240 9,805 10.000 30% 8,831 3,234 1,901 8.000 2,802 2,563 2,242 2,709 25% 2,623 323 - 2,418 20% 6.000 1,273 1,853 2,616 - 95 15% 4.000 6,578 6,655 6,644 10% 5

  13. Slide 13: Power Plant Availability

    13 POWER PLANT AVAILABILITY 1 Hydro Power Plants 100% 97% 97% 96% 96% 92% 93% 90% 80% 70% 2010 2011 2012 2013 2014 1Q15 2 Thermal Power Plants 100% 93% 94% 91% 91% 89% 90% 78% 79% 80% 70% 2009 2010 2011 2012 2013 2014 1Q15 Graphs Sources: Colbún. OVERVIEW OPERATIONS FINANCIALS PROJECTS 13

  14. Slide 14: Agenda

    14 AGENDA 1. SIC OVERVIEW 2. COLBÚN OVERVIEW 1. OPERATIONS 2. FINANCIALS 3. PROJECTS 14

  15. Slide 15: Main Figures and Metrics

    15 MAIN FIGURES AND METRICS 1 2 Operating Revenues (US$ million) EBITDA (US$ million) & EBITDA Mg (%) 50% 600 537 2.000 1,696 510 500 40% 1,503 1,409 1,406 1.500 400 352 36% 36% 30% 287 1.000 300 20% 200 20% 21% 500 10% 100 0 0 0% 2012 2013 2014 1Q15 LTM 2012 2013 2014 1Q15 LTM 3 4 Cash Flow (US$ mi

  16. Slide 16: Main Figures and Metrics

    16 MAIN FIGURES AND METRICS 1 2 7 2.000 Debt & Net Debt (US$ million) Net Debt / EBITDA Debt Net Debt 6 5.2 1.500 5 4.1 4 1.000 3 2.0 2.1 2 500 1 0 0 2012 2013 2014 1Q15 2012 2013 2014 1Q15 LTM 3 4 Leverage Ratio* (%) Net Interest Coverage 100 90 89 12 10.9 10.3 10 80 71 70 7.8 7.6 8 60 6.2 6 40 4 2

  17. Slide 17: Debt and Liquidity

    17 DEBT AND LIQUIDITY 1 Debt Profile Type Currency Interest Rate  Total Debt: MMUS$ 1,888 UF  Avrg. Maturity: 6.2 years BANKS 10%  Avrg. USD Interest Rate: 4.8% 22%  Cash: MMUS$ 817  Net Debt: MMUS$ 1,071 BONDS USD FIXED 78%  Dividend Policy 30% 90% 100% (As of Mar15) 2 3 800 Amortization Stru

  18. Slide 18: Agenda

    18 AGENDA 1. SIC OVERVIEW 2. COLBÚN OVERVIEW 1. OPERATIONS 2. FINANCIALS 3. PROJECTS 18

  19. Slide 19: Colbún Has Several Growth Opportunities: Projects in Chile

    19 COLBÚN HAS SEVERAL GROWTH OPPORTUNITIES Projects in Chile La Mina – Hydroelectric Project  34 MW of Capacity  191 GWh of expected annual generation  Phase: Under Construction since Dec14  Qualifies as NCRE Santa María II – Coal-fired Project  350 MW of Capacity  2,500 GWh of expected annual

  20. Slide 20: La Mina Hydroelectric Run-of-the-River

    20 LA MINA HYDROELECTRIC RUN-OF-THE-RIVER 1 Main Features  Location: San Clemente, Maule region  Capacity: 34 MW 2 Location  Annual Generation: ~ 180-195 GWh  CAPEX including the Tx. line: ~US$120-130 million  Construction + commissioning period: ~25-30 months  Status: Under construction since

  21. Slide 21: Santa Maria II Coal-Fired Power Plant

    21 SANTA MARIA II COAL-FIRED POWER PLANT 1 2 Main Features Location  Location: Coronel, Biobío region  Capacity: 350 MW Concepción  Annual Generation: ~2,500 GWh  Construction period: ~43-45 months Santa María II  2014 Main Events:  RCA/RSE commitments Coronel compliance  Stakeholders sociali

  22. Slide 22: San Pedro Hydroelectric Power Plant

    22 SAN PEDRO HYDROELECTRIC POWER PLANT 1 2 Main Features Location  Location: Panguipulli and Los Lagos, Los Ríos region  Capacity: ~170 MW San Pedro  Annual Generation: ~900-950 GWh  Construction period: ~40-45 months Panguipulli  2014 Main Events:  Socialization process Valdivia  Submit EIA

  23. Slide 23: Searching for Investment Opportunities in the Region

    23 SEARCHING FOR INVESTMENT OPPORTUNITIES IN THE REGION Special Focus on Colombia and Peru  Growing Electricity Consumption  Well established regulatory framework  Diversification:  Hydrological Conditions  Generation Technology  Fuel Access  Regulatory Risks OVERVIEW OPERATIONS FINANCIALS PR

  24. Slide 24: Key Investment Highlights

    24 KEY INVESTMENT HIGHLIGHTS  Country: Operates in Chile, the highest-rated country in the region (Aa3/AA/A+)  Size: Second-largest generation company in Chile’s largest electricity grid  Competitive: High-quality, diversified asset portfolio and flexible commercial policy.  Stable: Diversified,

  25. Slide 25: Disclaimer

    This document provides information about Colbún S.A. In no case this document constitutes a comprehensive analysis of the financial, production and sales situation of the company. To evaluate whether to purchase or sell securities of the company, the investor must conduct its own independent analysi

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