Colbun Sa · BCS:COLBUN

Colbun Sa — Non-Deal Roadshow (August 2017)

25 slides from Colbun Sa's roadshow presentation, Aug 24, 2017

  1. Slide 1: Scotiabank – Investor Roadshow

    Scotiabank – Investor Roadshow COMPANY PRESENTATION AUGUST 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 COMPANY Installed Capacity Market Share1 Ownership 3,852 MW 21% / 7%  49.96% Matte Group 3,282 MW / 570 MW  9.58% Angelini Group Power-Plants  19.44% Pension Founds Transmission Lines 24 ~900 km  21.02% Others 23 / 1 KEY FINANCIALS Rating EBI

  5. Slide 5: Well diversified generation assets

    Company Overview Well diversified generation assets 1 COLBUN’S PRESENCE IN CHILE & PERU.  3,852 MW Inst. Capacity  Hydro: 1,597 MW 12,772 MW Fenix Power Peru: 4 Reservoir: 1,065 MW SEIN 570 MW 12 Run-of-the-river: 532 MW  Thermal: 1,685 MW CENTRAL ZONE: 3 CCGT: 1,337 MW 210 MW / 1,128 MW 4 Diesel

  6. Slide 6: Fenix Power: Most efficient CCGT in Peru

    Company overview Fenix Power: Most efficient CCGT in Peru 1 1 KEY OPERATING HIGHLIGHTS. 2 LARGEST GENERATION PLANTS IN PERU – Effective Capacity MW most efficient CCGT in Peru Gas Diesel Based on fuel consumption 979 852 719 616 570 569 40 miles south of Lima Largest City and Capital of Peru Kallpa

  7. Slide 7: Market Overview

    Kcolbun K Colbun MEJO! G MARKET OVERVIEW

  8. Slide 8: Marginal costs & demand in Chile and Peru

    Market overview Marginal costs & demand in Chile and Peru 1 DEMAND GROWTH. (12 month average %) 2 MARGINAL COST IN SIC & SEIN. (US$ / MWh) 12% 150 Mg. Cost Sic Mg. Cost SEIN SIC SEIN 10% 120 96 8% 90 6% 4.4% 60 4% 2% 30 19 0.9% 0% 0  Marginal costs in the SIC have fallen in the last years, mainly d

  9. Slide 9: Generation and price development in Chile's central grid (SIC)

    Market overview Generation and price development in Chile’s central grid (SIC) • 17,399 MW Inst. Capacity • LNG re-gasification terminal since 2009 • Development based on hydro + competitive • Coal-fired power plants 60 natural gas 300 • PPA tenders with price indexation • Fixed price power purchase

  10. Slide 10: Main reservoirs condition

    Market overview Main reservoirs condition 1 HYDRO GENERATION. (GWh) 3 WATER FLOWS. (m3/sec) 7,000 25,000 18,289 300 20,000 250 6,000 15,000 200 M3/sec 10,000 150 5,000 4,478 5,000 100 4,000 0 50 2011 2012 2013 2014 2015 2016 2Q17 0 LTM 2014 2015 2016 1H17 Colbún Hydro Generation SIC Hydro Generation

  11. Slide 11: Stable EBITDA despite severe hydrological conditions

    Company Overview Stable EBITDA1 despite sevear hydrological conditions COLBUN’S EBITDA VS. HYDRO GENERATION. (US$ million & TWh) US$ million TWh 800 8.0 6.7 6.5 582 600 546 541 6.0 537 4.8 4.5 400 4.0 200 2.0 0 0.0 2011 2014 9 10 2012 2015 11 12 2013 2016 13 132 2Q17 LTM 2Q17 LTM14 EBITDA Hydro Gene

  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: Relevant regulatory changes in Chile

    Market Overview Relevant regulatory changes in Chile 1 TRANSMISSION AND COORDINATOR LAW.  Enacted in July, 2016.  Pricing and remuneration mechanisms were modified.  The former coordinators, Centers of Economic Dispatch (CDEC) were replaced by a single National Electric Coordinator, with a new st

  14. Slide 14: Operations in Chile & Peru

    3. OPERATIONS IN CHILE & PERU 14

  15. Slide 15: 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 0,3 0,4 40% 2,2 3.0 3.4 10 35% 3.2 4.4 3.8 3.6 4.4 4.5 3.9 4.6 8 2.2 2.9 2.6 30% 2.4 25% 6 1.9 2.6 2.5 2.6 20% 4 15% 6.9 7.2 6.7 7.2 6.5 6.6 6.5 6.5 5.2 10% 2

  16. Slide 16: Ensured long-term regasification capacity and LNG supply

    Operations in Chile & Peru Ensured long-term regasification capacity and LNG supply 1 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 MEDIUM-TERM LNG

  17. Slide 17: High quality clients in Chile

    Commercial Strategy High quality clients In Chile 1 SALES BY TYPE OF CUSTOMER. (%) 2 AVERAGE MONOMIC PRICE 2. (US$/MWh) 10% 3% 29% Codelco (A+) 120 Regulated Unregulated 17% Chilectra (BBB+) CGED (Local AA) 100 Saesa (Local AA+) AngloAmerican (BB+) 20% 80 21% Others  Long-term energy supply contrac

  18. Slide 18: PPAs renewal opportunities in Chile

    Commercial Strategy PPAs renewal opportunities in Chile 1 UPCOMING REGULATED AUCTIONS 1. 15.4 TWh 2.0 1.6 8.0 3.8 TWh TWh TWh TWh Year 2017 2018 2019 2020 Supply starting 2024 2024 2025 2026 Duration (years) 20 20 20 20 2 UNREGULATED CLIENTS.  In the coming years there is a relevant amount of energ

  19. Slide 19: Consolidated financial results

    Financial Review Consolidated financial results 1 OPERATING REVENUES. (US$ million) 3 NET INCOME. (US$ million) 2,000 250 1,696 216 200 205 1,600 1,503 1,436 1,479 200 102 1,314 Hidro Aysén 1,200 150 82 800 100 63 400 50 0 0 2013 2014 2015 2016 2Q17 LTM 2013 2014 2015 2016 2Q17 LTM 2 EBITDA & EBITDA

  20. Slide 20: Consolidated Debt Profile

    Financial Review Consolidated Debt Profile 1 FINANCIAL DEBT. 2 DEBT PROFILE.  Avrg. Maturity: 4.6 years  Avrg. US$ Interest Rate: 4.95% Banks Variable UF Peru 21% 3% 6% 363 US$ 1,703 million Chile Local Bonds Int. Bonds US$ 1340 Fixed 94% 20% 59% 97% 3 AMORTIZATION STRUCTURE. (US$ million) 600 532

  21. Slide 21: Growth Opportunities

    K colbun 4, GROWTH OPPORTUNITIES

  22. Slide 22: 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 9 MW - Fuel access PMGD - Regulation Solar Photovoltaic

  23. Slide 23: Concluding remarks

    Concluding remarks 1. 1 Size: Second-largest generation company in Chile’s largest electricity grid and a relevant presence in Peru. 2. 2 Customers: Diversified, solid and creditworthy portfolio of clients. 3. 3 High standards of environmental and social management: Complete integration with all of

  24. Slide 24: 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

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