Minera Valparaiso S.a. · BCS:MINERA
Minera Valparaiso — Q2 2024 Earnings Presentation
37 slides from Minera Valparaiso's earnings presentation, August 2024
Slide 1: 2nd Quarter 2024 Results
June, 2024 Santiago, Chile August, 2024
Slide 2: 2nd Quarter 2024 Results agenda
2nd Quarter 2024 Results 1. Minera Valparaíso at a glance 2. Corporate Governance 3. 2nd 2024 Quarterly Results 4. Highlights 2Q2024 5. Corporate Strategy 6. Performance 7. Financial Position 8. Annexes Santiago, Chile August, 2024 2
Slide 3: Minera Valparaíso at a glance
Santiago, Chile August, 2024
Slide 4: Minera Valparaíso
2nd Quarter 2024 Results Minera Valparaíso Investment Company of the Matte Group Company Description ▪ Minera Valparaíso is a long-standing investment company that carries out its main activities and businesses in the fields of Energy, Materials, Finance and Telecommunications ▪ It stands out for it
Slide 5: Main Subsidiaries and Affiliates of the Matte Group
2nd Quarter 2024 Results Main Subsidiaries and Affiliates of the Matte Group Ownership1 55.7% 50.0% 98.1% 45.4% 32.5% 10.6% 10.0% Through Minera 19.2% 48.2% 6.7% 0.0% 8.5% 6.5% 7.0% Mkt Cap2 $4,688 $2,263 $1,848 $199 $399 $9,984 $511 Total Assets2 $16,940 $6,625 $19,335 $422 $6,324 $28,140 $1,853 Ne
Slide 6: Corporate Governance
Santiago, Chile August, 2024
Slide 7: Minera Valparaíso S.A. Board of Directors
2nd Quarter 2024 Results Minera Valparaíso S.A. Board of Directors Joaquín Izcúe Elgart Chairman Joaquín Izcúe studied Business Administration at the Pontificia Universidad Católica de Chile. In 2017 was appointed CEO of Forestal O’Higgins S A after a successful career in the banking industry at Ban
Slide 8: Management Team
2nd Quarter 2024 Results Management Team Organizational structure Investment Management1 Development and Strategy Management1 Tax and Legal Board of Management1 CEO Directors Accounting Management1 Corporate Controller1 Operations and Technology Management1 Head of Administration and Personnel1 1. F
Slide 9: 2nd 2024 Quarterly Results
Santiago, Chile August, 2024
Slide 10: EBITDA and Earnings from Associates
2nd Quarter 2024 Results EBITDA and Earnings from Associates Colbún Results Summary 2Q24/2Q23: Quarterly EBITDA ▪ Total Generation: decreased mainly due to lower thermal Figures in US$ millions and % EBITDA Margin generation, which was primarily gas and coal- based generation. 47% ▪ Physical sales d
Slide 11: Highlights 2Q2024
Santiago, Chile August, 2024
Slide 12: Period Highlights
2nd Quarter 2024 Results Period Highlights 1. Colbún ▪ Horizonte Wind Project reached 87% progress, with 33 wind turbines energized, which have added 21 GWh of energy. The project is expected to operate by year end. Also, in March, the project entered into Environmental Impact Assessment System, whi
Slide 13: Period Highlights
2nd Quarter 2024 Results Period Highlights 3. CMPC ▪ On April 29th, CMPC signed an agreement with the State of Rio Grande do Sul in Brazil to advance in the evaluation of a project we have named Natureza, which will include the construction of a new pulp mill in Barra do Ribeiro, as well as improvem
Slide 14: Corporate Strategy
Santiago, Chile August, 2024
Slide 15: Corporate Strategy
2nd Quarter 2024 Results Corporate Strategy Our Strategy is defined in 6 Key Elements Capital Sector Structure Diversification Long Term Portfolio Growth Management Asset Value Trends Environmental Social Core Business Expansion Governance Santiago, Chile August, 2024 15
Slide 16: Sector diversification: underlying value by sector
2nd Quarter 2024 Results Corporate Strategy Sector diversification provides a unique quality, value protection and cashflow Underlying Value By Sector1 Sector 43.19% Capital Pulp & Paper Diversification Structure 38.44% Fuel Dx Finance Long Term Portfolio Growth Management Asset Value Energy Trends
Slide 17: Sector diversification: sales by geography
2nd Quarter 2024 Results Corporate Strategy Sector diversification provides a unique quality, value protection and cashflow Sales By Geography Sector Capital Diversification Structure Europe: 3% Long Term USA: 4% Portfolio China: 4% Growth Management Asset Value Trends Asia ex. China: 3% Environment
Slide 18: Long term growth trends
2nd Quarter 2024 Results Corporate Strategy Global and local economy growth, plus evolutionary long term growth trends ✓ Increasing GDP Per cápita ✓ Global Consumption Sector ✓ Global trade Capital Diversification Structure ✓ Packaging away from plastics ✓ Power generation using renewables - solar a
Slide 19: Core business expansion
2nd Quarter 2024 Results Corporate Strategy Innovative, forward-looking and stronger business lines in the region Sector Capital Diversification Structure Long Term Portfolio Growth Management Asset Value Trends Environmental Social Core Business Governance Expansion 1 Note: 1: Conditional upon the
Slide 20: Sustainable growth and stakeholder relationships
2nd Quarter 2024 Results Corporate Strategy Sustainable growth and active and transparent relationships with stakeholders are key to the strategy Sector Capital Diversification Structure Long Term Portfolio Growth Management Asset Value Trends Environmental Social Core Business Governance Expansion
Slide 21: Portfolio management history
2nd Quarter 2024 Results Corporate Strategy Profound knowledge of assets, markets and portfolio management, unlocking value 1990 - 2000 1970 - 1980 ▪ BICE Vida is founded ▪ Chilquinta Acquires 19.99% of 2010 - Today ▪ 55% control stake in CMPC Sector Entel Capital is achieved ▪ Puertos y Logística D
Slide 22: Consistent, prudent and flexible capital structure
2nd Quarter 2024 Results Corporate Strategy Consistent, prudent and flexible capital structure with channels built into markets Sector Cash (US$mn) $553 $906 $1,184 Capital Diversification Structure Net Debt/ 3.75x 1.75x 11.72x1 EBITDA LTM # Bonds 15 4 2 Long Term Portfolio Growth Management Asset V
Slide 23: Performance
Santiago, Chile August, 2024
Slide 24: Performance and NAV
2nd Quarter 2024 Results Performance and NAV Stock Performance (base=100) Minera Valparaíso IPSA Index 2,000 1,500 1,000 500 0 jul-01 jul-02 jul-03 jul-04 jul-05 jul-06 jul-07 jul-08 jul-09 jul-10 jul-11 jul-12 jul-13 jul-14 jul-15 jul-16 jul-17 jul-18 jul-19 jul-20 jul-21 jul-22 jul-23 jul-24 jul-0
Slide 25: Holding Discount
2nd Quarter 2024 Results Holding Discount Market Value Market Value Minera Stake (%) NAV (USD mm) Valparaíso (USD mm) (USD mm) 27.3% 48% 1,092 (discount) 19% 900 2,748 9% 34 1,999 7% 125 7% 654 7% 36 Net Debt (93) Santiago, Chile August, 2024 25
Slide 26: Holding Discount Evolution
2nd Quarter 2024 Results Holding Discount Evolution Historical Evolution of Minera Valparaiso's Holding Discount Average: 34.3% 52.1% 49.1% 46.6% 45.6% 46.3% 46.3% 39.1% 39.7% 40.7% 40.1% 41.2% 37.6% 34.2% 30.0% 31.0% 30.9% 32.6% 25.4% 27.3% 18.0% 17.1% 12.4% 5.8% 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Slide 27: Historical Dividends
2nd Quarter 2024 Results Historical Dividends Minera’s Received Dividends per company1 Figures in US$ millions $1,000 COLBUN CMPC $800 $773 COPEC $97 BICECORP $600 ALMENDRAL MOLYMET $400 PUERTO $250 $601 $228 $226 ENELAM $199 $200 $39 $23 $130 $40 $95 ENELCHILE $3 $67 $143 $168 $117 $149 $74 Total M
Slide 28: Dividend Payout Policy
2nd Quarter 2024 Results Dividend Payout Policy Up to 100% of the Liquid Net Profit Dividends Paid1 Figures in US$ millions Regular Eventual $1,200 $1,000 $800 $696.0 $600 $400 $200 $195.0 $397 $232 $256 $167 $86 $146 $0 2018 2019 2020 2021 2022 2023 LNP2 68% 95% 84% 90% 62% 44% Note: 1:Regular divi
Slide 29: Financial Position
Santiago, Chile August, 2024
Slide 30: Financing Strategy
2nd Quarter 2024 Results Financing Strategy We follow 5 main indicators1 Net Debt to LTM Dividends to Net Debt to Non- Debt to NAV Net Debt to Equity4 LTM Dividends Financial Expenses2 Controlling Asset Value3 Minera Valparaíso 0.09x 1.39x 6.21x 0.29x 0.06x Covenant: 0.5x Credit Ratings Internationa
Slide 31: Minera Valparaíso Consolidated Financial Debt
2nd Quarter 2024 Results Minera Valparaíso Consolidated Financial Debt Financial Debt as of June 2024 By Debt Maturity By Debt Type By Debt Currency By Debt Borrower1 Current 5.3% Bonds Fénix Loans with 89.4% Colbún 11.1% financial 80.0% institutions US$ 2.2 Bn 8.4% US$ 2.2 Bn US$ 2.2 Bn U.F. US$ 2.
Slide 32: Key Financial Ratios (Unconsolidated)
2nd Quarter 2024 Results Key Financial Ratios (Unconsolidated) Net Debt / Equity1 Debt to NAV Financial Covenant: 0.50x 0.18x 0.17x 0.16x 0.16x 0.13x 0.14x 0.13x 0.13x 0.10x 0.10x 0.09x 0.11x 0.12x 0.11x 0.05x 0.04x 0.05x 0.06x 2Q '22 3Q '22 4Q '22 1Q '23 2Q '23 3Q '23 4Q '23 1Q '24 2Q '24 2Q '22 3Q
Slide 33: Annexes
Santiago, Chile August, 2024
Slide 34: Minera Valparaíso’s Investment Portfolio
2nd Quarter 2024 Results Minera Valparaíso’s Investment Portfolio Electric power generation 26 power plants in Chile and 1 in Peru. Installed capacity 3,980 MW Production and marketing of wood and cellulose World’s largest molybdenum processor and rhenium products, being the 4th largest cellulose pr
Slide 35: Consolidated Income Statement
2nd Quarter 2024 Results Consolidated Income Statement (US$ millions) jun-24 jun-23 Operating Revenues 808 1,101 Operating Costs (430) (694) Gross Profit 378 407 Gross Margin (%) 47% 37% Administrative Expenses (182) (182) Other Gains (Losses) (17) 106 Operating Gains (Losses) 179 331 Operating Marg
Slide 36: Consolidated Balance Sheet
2nd Quarter 2024 Results Consolidated Balance Sheet (US$ millions) jun-24 dic-23 Consolidated Balance Sheet (US$ millions) jun-24 dic-23 Assets Liabilities Cash and Cash Equivalents 857 337 Other current financial liabilities 117 347 Other current financial assets 113 846 Lease liabilities, current
Slide 37: Santiago, Chile August, 2024
Santiago, Chile August, 2024