Colbun Sa · BCS:COLBUN
Colbun Sa — BAML Emerging Markets Debt and Equity Conference 2020
27 slides from Colbun Sa's conference presentation, June 2020
Slide 1: Corporate Presentation – BAML Emerging Markets Debt and Equity Conference
CREDICORP CONFERENCE CORPORATE PRESENTATION SEPT 2019 CORPORATE PRESENTATION BAML - EMERGING MARKETS DEBT AND EQUITY CONFERENCE JUNE 2020
Slide 2: Disclaimer & Contact Information
Disclaimer & Contact Information ▪ This document provides information about Colbún S.A. In no INVESTOR RELATIONS case this document constitutes a comprehensive analysis of the financial, production and sales situation of the company. TEAM CONTACT ▪ To evaluate whether to purchase or sell securities
Slide 3: Agenda
AGENDA 1. COMPANY OVERVIEW 2. VALUE PROPOSITION 3. CONCLUDING REMARKS 3
Slide 4: Company & industry overview: Leading position in Chile & Peru
Company & industry overview Leading position in Chile & Peru THE COMPANY Installed Capacity Market Share1 Ownership 3,811 MW 15% / 6% 49.96% Matte Group 3,244 MW / 567 MW 9.58% Angelini Group Power Plants Transmission Lines 18.70% Pension Funds 25 ~942 km 21.76% Others 24 / 1 KEY FINANCIALS Internat
Slide 5: Agenda
AGENDA 1. COMPANY OVERVIEW 2. VALUE PROPOSITION 3. CONCLUDING REMARKS 5
Slide 6: Value proposition: Leading position supported by competitive strengths
Value proposition Leading position supported by competitive strengths 1 COST EFFICIENT AND DIVERSIFIED ASSET BASE 2 STRONG AND COMPETITIVE SUPPLY CONTRACTS 3 PRUDENT FINANCIAL MANAGEMENT 4 ATTRACTIVE PORTFOLIO OF GROWTH OPTIONS 5 MAXIMIZING VALUE TO ALL OF OUR STAKEHOLDERS 6
Slide 7: Cost efficient & diversified asset base: Attractive markets
1. Cost efficient & diversified asset base Attractive markets LTM GENERATION DEMAND GROWTH MARGINAL COST MARKET SHARE1 GWh 12 month average % US$/MWh % Others Peruvian Hydro 6% SEIN 20 Santa Rosa 29% Gov. Others 56% 5% 15% 8% Huallaga 4% 4% 52,655 3% 10 Statkraft 2% 2% Enel SEIN 1% 5% 13% 13 GW GNL
Slide 8: Geographical and technological diversification
1. Cost efficient & diversified asset base Geographical and technological diversification 1. DIVERSIFIED GENERATION ASSETS 3. DECARBONIZATION PROCESS: LOW IMPACT FOR COLBÚN Photovoltaic Coal-fired 0% 10% ▪ Colbún has only 1 coal-fired power Open cycle Combined cycle plant of the 27 present in the sy
Slide 9: Hydrological conditions
1. Cost efficient & diversified asset base Hydrological conditions 1. COLBÚN RESERVOIR LEVEL (m.a.s.l) 3. ACCUMULATED RAINFALLS (mm) 445 2018 2019 2020 Los Quilos 435 425 1Q19 LTM 1Q20 LTM 415 176 52 405 Armerillo 395 1Q19 LTM 1Q20 LTM 1,437 990 2. CHAPO RESERVOIR LEVEL (m.a.s.l) Abanico 250 1Q19 LT
Slide 10: 100% of PPAs supplied with cost-efficient generation
1. Cost efficient & diversified asset base 100% of PPAs supplied with cost-efficient generation WHOLE-SALE COMMERCIAL STRATEGY GENERATION & PPAs LEVEL1 (TWh) 1. Optimize Contracting level ◼ Renewable Capacity: hydro, solar, wind ◼ Efficient thermal capacity: coal, CCGTs 0.5 Hydro 3.9 2. Cost structu
Slide 11: Secured long-term regasification capacity & LNG supply
1. Cost efficient & diversified asset base Secured long-term regasification capacity & LNG supply LONG-TERM STRATEGY: Leveraging our efficient natural gas power facilities and diversifying our supply sources; contributing to a competitive, flexible, secure and sustainable power supply 1. REGASIFICAT
Slide 12: Recent developments in Chile's regulatory framework
1. Cost efficient & diversified asset base Recent developments in Chile’s regulatory framework LATEST CHANGES BILLS UNDER DISCUSSION 1. Price stabilization mechanism for regulated clients tariffs 1. New distribution law ▪ Tariffs will be stabilized until Jan21, and adjusted by local CPI ▪ Update the
Slide 13: Addressing COVID19
1. Cost efficient & diversified asset base Addressing COVID19 CURRENT STATUS COMMUNITY SUPPORT ▪ Two priorities: protect the health of all our ▪ The payment period for supplier invoices was reduced stakeholders and to the ensure the security of the from 15 days to 7 days energy supply ▪ The confecti
Slide 14: High quality clients in Chile
2. Strong and competitive supply contracts High quality clients in Chile MAIN CONTRACTS CUSTOMER BASE PROFILE SIGNED SINCE 2016 3.0 TWh/year, for 10 Sales % to Unregulated Customers Number of Unregulated Customers years starting January 2022 41% 60% 4 230 0.5 TWh/year, for 10.5 2014 2019 2014 2019 y
Slide 15: Energy consumption profile by segment
2. Strong and competitive supply contracts Energy consumption profile by segment Due to their consumption profile, unregulated costumers have a lower withdrawal cost CONSUMPTION PROFILE UNREGULATED CUSTOMER REGULATED CUSTOMER Energy Energy HOURLY PROFILE WITHDRAWAL COST Cost 24 hours 24 hours WITHDR
Slide 16: Stable operational results & solid metrics
3. Prudent financial management Stable operational results & solid metrics 1. EBITDA & EBITDA MG. (US$ million & %) 2. NET INCOME. (US$ million) EBITDA Chile EBITDA Fenix EBITDA Mg 49% 289 45% 45% 47% 44% 230 77 205 54 36 70 202 56 176 639 648 627 631 546 2016 2017 2018 2019 1Q20 LTM 2016 2017 2018
Slide 17: Strong liquidity
3. Prudent financial management Strong liquidity 1. CASH POSITION. (US$ million) 3. CASH FLOW. (US$ million) 980 810 788 797 667 Operating Activities Financing Activities Investing Activities Net Cash Flow 2016 2017 2018 2019 1Q20 LTM 2016 2017 2018 2019 1Q20 133 1 176 16 2. DIVIDEND DISTRIBUTION. (
Slide 18: Long term debt profile
3. Prudent financial management Long term debt profile 1. FINANCIAL DEBT PROFILE US$1,719(*) mm 100% bonds 3.9% Interest Rate average US$1,405 million 97% USD and 3% UF US$314 million 100% Fixed rate 7.2 years average life 2. AMORTIZATION STRUCTURE (US$ million) 600 Fenix Bond 527 500 500 Colbun Bon
Slide 19: Solar and Wind Generation Projects
Attractive pipeline of renewable energies Solar and Wind Generation Projects Feasibility Environmentally approved We hold a portfolio of solar and wind farm power plants, in different stages of development, for approximately 3,100 MW 2 1 3 4 4 2 3 1 DIEGO DE INTI HORIZONTE JARDIN ALMAGRO PACHA SOLAR
Slide 20: Diego de Almagro – Solar power plant
4. Attractive portfolio of growth options Diego de Almagro – Solar power plant Diego de Almagro KEY INDICATORS Chañaral Copiapó Estimated capacity 200 MW Estimated net annual 560 GWh generation Estimated load 35% factor Land Surface 330 ha Connection point Illapa S/E 220 kV (2.6 km) Environmental Im
Slide 21: Horizonte – Wind farm
4. Attractive portfolio of growth options Horizonte – Wind farm Horizonte Wind Farm KEY INDICATORS Antofagasta Estimated capacity 607 MW minimum Taltal Estimated net annual 2,000 GWh generation Estimated load 38% factor Land Surface 8,000 ha Connection point Parinas S/E Environmental Impact Study Pr
Slide 22: International expansion
4. Attractive portfolio of growth options International expansion GENERATION ASSETS EXPLORING NEW BUSINESS OPPORTUNITIES 1. KEY DRIVERS 1. NEW SERVICES AND PRODUCTS 1. Low per capita energy consumption Products and services that respond to customers needs 2. Stable regulatory frameworks ▪ Demand Res
Slide 23: Sustainability strategy
5. Maximizing value to all of our stakeholders Sustainability strategy EMPLOYEES ▪ Offering high-quality employment and a safe work environment ▪ Annual Work Environment Surveys ▪ Strong relationship with our unions ▪ Annual Sustainable weeks to promote COMMUNITY AND SOCIETY Colbún’s core values ▪ B
Slide 24: Sustainability strategy
5. Maximizing value to all of our stakeholders Sustainability strategy 2. SIGNIFICANT ACHIEVEMENTS 3. ADDRESSING CLIMATE CHANGE 1. SUSTAINABILITY IS INTEGRATED AND RECOGNITIONS IN ALL AREAS OF THE COMPANY ◼ Business model based on specific ◼ Since 2015 Colbún adheres to the Global ◼ Largest issuer o
Slide 25: Agenda
AGENDA 1. COMPANY OVERVIEW 2. VALUE PROPOSITION 3. CONCLUDING REMARKS 25
Slide 26: Concluding remarks
Concluding remarks 1. Shareholders: 4. Customers: Strong, reliable controlling group with a Diversified, solid and creditworthy portfolio strategic and long-term vision of the business of clients 2. Size: 5. Sustainability: Leading position in Chile’s power market and Integrated in all areas of the
Slide 27: 27
27
Colbún — BAML Emerging Markets Debt and Equity Conference 2020 on 6ix