Minera Valparaiso S.a. · BCS:MINERA
Minera Valparaiso — Q3 2024 Earnings Presentation
37 slides from Minera Valparaiso's earnings presentation, November 2024
Slide 1: 3rd Quarter 2024 Results
November, 2024 Santiago, Chile November, 2024
Slide 2: Agenda
3rd Quarter 2024 Results 1. Minera Valparaíso at a glance 2. Corporate Governance 3. 3rd 2024 Quarterly Results 4. Highlights 3Q2024 5. Corporate Strategy 6. Performance 7. Financial Position 8. Annexes Santiago, Chile November, 2024 2
Slide 3: Minera Valparaíso at a glance
Santiago, Chile November, 2024
Slide 4: Minera Valparaíso
3rd 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
3rd 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 $4,355 $2,379 $1,800 $209 $401 $8,715 $511 Total Assets2 $17,181 $6,698 $20,047 $444 $6,589 $28,247 $1,715 Ne
Slide 6: Corporate Governance
Santiago, Chile November, 2024
Slide 7: Minera Valparaíso S.A. Board of Directors
3rd Quarter 2024 Results Minera Valparaíso S.A. Board of Directors Joaquín Izcúe Elgart Chairman Joaquín Izcúe studied Business Administration at the Pontificia Universidad Católica de Chile. In 2017 was appointed CEO of Forestal O’Higgins S A after a successful career in the banking industry at Ban
Slide 8: Management Team
3rd Quarter 2024 Results Management Team Organizational structure Investment Management1 Development and Strategy Management1 Tax and Legal Board of Management1 CEO Directors Accounting Management1 Corporate Controller1 Operations and Technology Management1 Head of Administration and Personnel1 1. F
Slide 9: 3rd 2024 Quarterly Results
Santiago, Chile November, 2024
Slide 10: EBITDA and Earnings from Associates
3rd Quarter 2024 Results EBITDA and Earnings from Associates Colbún Results Summary 3Q24/3Q23: Quarterly EBITDA ▪ Total Generation: decreased mainly due to lower gas and hydro generation, this last one is mainly explained by the lower water Figures in US$ millions and % EBITDA Margin inflow due to t
Slide 11: Highlights 3Q2024
Santiago, Chile November, 2024
Slide 12: Period Highlights
3rd Quarter 2024 Results Period Highlights 1. Colbún ▪ Horizonte Wind Project reached 90% progress, with 66 wind turbines energized, which have added 83 GWh of energy. The project is expected to operate by year end. ▪ In September, Colbun decided to suspend Paposo Pump Storage project after the Anto
Slide 13: Period Highlights
3rd 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 Natureza, which will include the construction of a new pulp mill in Barra do Ribeiro, as well as improvements in roads and port i
Slide 14: Corporate Strategy
Santiago, Chile November, 2024
Slide 15: Corporate Strategy: Key Elements
3rd 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 November, 2024 15
Slide 16: Sector diversification and underlying value by sector
3rd Quarter 2024 Results Corporate Strategy Sector diversification provides a unique quality, value protection and cashflow Underlying Value By Sector1 Sector Capital 40.83% 41.80% Pulp & Paper Diversification Structure Fuel Dx Finance Long Term Portfolio Growth Management Asset Value Energy Trends
Slide 17: Sector diversification: sales by geography
3rd 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: 3% Growth Management Asset Value Trends Asia ex. China: 3% Environment
Slide 18: Global and local growth trends
3rd 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: Innovative, forward-looking business lines in the region
3rd 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 1: Conditional upon the comple
Slide 20: Sustainable growth and stakeholder relationships
3rd 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: Profound knowledge of assets, markets and portfolio management
3rd 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
3rd Quarter 2024 Results Corporate Strategy Consistent, prudent and flexible capital structure with channels built into markets Sector Cash (US$mn) $690 $947 $820 Capital Diversification Structure Net Debt/ 3.08x 1.82x 11.37x1 EBITDA LTM # Bonds 14 4 1 Long Term Portfolio Growth Management Asset Val
Slide 23: Performance
Santiago, Chile November, 2024
Slide 24: Performance and NAV
0 200 400 800 1,000 600 ene-00 3Q '21 3,395 jun-00 nov-00 abr-01 Figures in US$ millions Net Asset Value sept-01 3rd Quarter 2024 Results feb-02 4Q '21 2,184 jul-02 dic-02 may-03 oct-03 mar-04 1Q '22 2,339 Stock Performance (base=100) ago-04 ene-05 Performance and NAV jun-05 nov-05 abr-06 2Q '22 2,0
Slide 25: Holding Discount
3rd Quarter 2024 Results Holding Discount Market Value Market Value Minera Stake (%) NAV (USD mm) Valparaíso (USD mm) (USD mm) 32.1% 48% 1,147 (discount) 19% 835 2,650 9% 34 1,799 7% 121 7% 571 7% 36 Net Debt (94) Santiago, Chile November, 2024 25
Slide 26: Holding Discount Evolution
3rd Quarter 2024 Results Holding Discount Evolution Historical Evolution of Minera Valparaiso's Holding Discount Average: 34.2% 52.1% 49.1% 46.6% 45.6% 46.3% 46.3% 39.7% 40.7% 40.1% 41.2% 37.6% 34.2% 30.0% 31.0% 30.9% 32.6% 32.1% 25.4% 27.3% 18.0% 17.1% 12.4% 5.8% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
Slide 27: Historical Dividends
3rd 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 $75 $143 $168 $117 $149 $74 $42 Tot
Slide 28: Dividend Payout Policy
3rd Quarter 2024 Results Dividend Payout Policy Up to 100% of the Liquid Net Profit Dividends Paid1 Figures in US$ millions Regular Eventual $1,200 $1,000 $800 $696.0 $600 $400 $200 $195.0 $397 $232 $256 $167 $86 $146 $0 2018 2019 2020 2021 2022 2023 LNP2 68% 95% 84% 90% 62% 44% Note: 1:Regular divi
Slide 29: Financial Position
Santiago, Chile November, 2024
Slide 30: Financing Strategy
3rd Quarter 2024 Results Financing Strategy We follow 5 main indicators1 Net Debt to LTM Dividends to Net Debt to Non- Debt to NAV Net Debt to Equity4 LTM Dividends Financial Expenses2 Controlling Asset Value3 Minera Valparaíso 0.09x 1.37x 7.27x 0.34x 0.06x Covenant: 0.5x Credit Ratings Internationa
Slide 31: Minera Valparaíso Consolidated Financial Debt
3rd Quarter 2024 Results Minera Valparaíso Consolidated Financial Debt Financial Debt as of June 2024 By Debt Maturity By Debt Type By Debt Currency By Debt Borrower1 Current 4.4% Bonds Fénix Loans with 90.0% Colbún 10.4% financial 80.1% institutions US$ 2.2 Bn 8.5% US$ 2.2 Bn US$ 2.2 Bn U.F. US$ 2.
Slide 32: Key Financial Ratios (Unconsolidated)
3rd 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 0.09x 0.09x 0.11x 0.12x 0.11x 0.04x 0.05x 0.06x 0.06x 3Q '22 4Q '22 1Q '23 2Q '23 3Q '23 4Q '23 1Q '24 2Q '24 3Q '24 3Q '22 4Q
Slide 33: Annexes
Santiago, Chile November, 2024
Slide 34: Minera Valparaíso's Investment Portfolio
3rd Quarter 2024 Results Minera Valparaíso’s Investment Portfolio Electric power generation 26 power plants in Chile and 1 in Peru. Installed capacity 4,219 MW Production and marketing of wood and cellulose World’s largest molybdenum processor and rhenium products, being the 4th largest cellulose pu
Slide 35: 3rd Quarter 2024 Results: Consolidated Income Statement
3rd Quarter 2024 Results Consolidated Income Statement (US$ millions) sept-24 sept-23 Operating Revenues 1,192 1,595 Operating Costs (603) (922) Gross Profit 589 672 Gross Margin (%) 49% 42% Administrative Expenses (279) (272) Other Gains (Losses) (26) 111 Operating Gains (Losses) 284 512 Operating
Slide 36: 3rd Quarter 2024 Results: Consolidated Balance Sheet
3rd Quarter 2024 Results Consolidated Balance Sheet (US$ millions) sept-24 dic-23 Consolidated Balance Sheet (US$ millions) sept-24 dic-23 Assets Liabilities Cash and Cash Equivalents 977 337 Other current financial liabilities 96 347 Other current financial assets 41 846 Lease liabilities, current
Slide 37: Santiago, Chile November, 2024
Santiago, Chile November, 2024