1Q16 Results Review 2016 COLBN A p r i l A G E N D A HIGHLIGHTS - - PowerPoint PPT Presentation

COLBÚN

1Q16 Results Review2016

A p r i l

RECENT EVENTS FINANCIAL REVIEW G R O W T H O P T I O N S

HIGHLIGHTS A G E N D A

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1Q 201 1Q 2016

H I G H L I G H T S

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EBITDA (MMUS$) Revenues (MMUS$) Hydro Generation Chile (GWh) Net Debt (MMUS$) Efficient Capacity over Commitments (%) Net Income (MMUS$)

317 363

1Q15 1Q16

93 170

1Q15 1Q16

2,109 2,285

1Q15 1Q16

1,071 1,182

1Q15 1Q16

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1Q15 1Q16

100 100

1Q15 1Q16

1 2 3 4 5 6 14% 83% 17% 0% 10% 986% 76

RECENT EVENTS

H I G H L I G H T S G R O W T H O P T I O N S FINANCIAL REVIEW

A G E N D A

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1Q 201 1Q 2016

R E C E N T E V E N T S

On February 2016, Colbún refinanced a bank debt Fenix Power held at the time of acquisition, for a total amount of US$365.7 million.

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Colbún obtained a reserve regasification capacity in the Open Season process of GNL Quintero. On April Colbún purchased part of SunEdison’s assets in Chile.

FINANCIAL REVIEW

RECENT EVENTS

A G E N D A

H I G H L I G H T S G R O W T H O P T I O N S

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CH CHILE: ILE: PHY PHYSICAL SA SICAL SALE LES S AN AND D GENERA GENERATION TION B BALAN ALANCE

F I N A N C I A L R E V I E W

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Sales Volumes

1Q15 1Q16 QoQ

GWh Regulated Customers 1,734 1,645 (5%) Free Customers 1,048 1,112 6% Total Commitments 2,782 2,757 (1)% Spot Market Sales 327 403 23% Total Energy Sales

3,109 3,160 2%

Spot Market GWh

1Q15 1Q16 QoQ

Sales 327 403 23% Purchases

• Net Spot Market

327 403 23% 2014 1Q15 1Q16 QoQ

GWh Hydroelectric 1,098 1,288 17% Thermal – Gas 1,147 1,212 6% Thermal – Diesel 141 4 (97%) Thermal - Coal 792 700 (12%) Eolic - Punta Palmeras 18 19 6% Total Generation

3,195 3,223 1%

Lower energy demand from Regulated Customers

Key Drivers of 1Q16

Higher hydro, natural gas and coal- power participation. Base load efficient generation accounted for 100% of commitments

CH CHILE: E ILE: EBI BITD TDA A AN ANAL ALYSIS SIS

F I N A N C I A L R E V I E W

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Lower Revenues, explained by Lower spot market sales, offset by higher sales to free customers

Key Drivers of 1Q16

Raw Materials and consumables used decreased due to lower fuel cost in the international markets and lower diesel generation Higher EBITDA:

• Better generation mix
• Lower fuel costs

US$ million

1Q15 1Q16 QoQ

Revenues 317.0 306.9 (3%) Raw Materials and Consumables Used (205.2) (132.2) (36%) Personnel and other

• perating expenses

(19.1) (21.2) 11%

EBITDA 92.8 153.3 65%

EBITDA Margin (%) 29% 50%

PE PERU: U: P PHY HYSICAL SA SICAL SALE LES S AN AND D GENERA GENERATION TION B BALAN ALANCE

F I N A N C I A L R E V I E W

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A decrease in spot market net purchases

Key Drivers of 1Q16

Higher power demand from customers under contract Annual own generation accounted for 88% of the company’s commitments

Sales Volumes

1Q15 1Q16 QoQ

GWh Customers Under Contract 676 758 12% Total Commitments 676 758 12% Spot Market Sales 861 477 (45%) Total Energy Sales

1,537 1,235 (20)%

Spot Market GWh

1Q15 1Q16 QoQ

Sales 861 477 (45%) Purchases 510 594 16% Net Spot Market

351 (117)

• Generation

1Q15 1Q16 QoQ

GWh Thermal – Gas 1,056 663 (37%) Total Own Generation 1,056 663 (37%)

PE PERU: U: E EBITD BITDA A AN ANAL ALYSIS SIS

F I N A N C I A L R E V I E W

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Revenues from ordinary activities increased 12%

Key Drivers of 1Q16

Higher income from transmission tolls Raw Materials increased explained by higher purchases in the spot market

US$ million

1Q15 1Q16 QoQ

Revenues 49.5 55.6 12% Raw Materials and Consumables Used (30.5) (32.8) 8% Personnel and other

• perating expenses

(0.8) (1.9) 138%

EBITDA 12.7 16.7 31%

EBITDA Margin (%) 26% 30%

CO CONSOLID NSOLIDATE TED NO D NON-OPERA OPERATING TING INCO INCOME ME AN ANAL ALYSIS SIS

F I N A N C I A L R E V I E W

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1Q16 had higher financial expenses due to the consolidation of Fenix Power’s debt

Key Drivers of 1Q16

Higher financial income Favorable exchange rate difference

US$ million

1Q15 1Q16 QoQ

Financial Income

1.0 2.7

183% Financial Expenses

(22.2) (27.4)

23% Results of Indexation Units

0.1

• Exchange Rate Differences

0.4 3.0

633% Share of profit (loss) from equity- accounted associates

1.5 1.4

(5%) Other non-operating income/expense

(0.9) (0.5)

42%)

NON-OPERATING INCOME

(20.2) (20.8) 3%

US$ million

1Q15 1Q16 QoQ

NET INCOME 7.0 76 986%

GROWTH OPTIONS

FINANCIAL REVIEW

A G E N D A

H I G H L I G H T S RECENT EVENTS

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SE SEAR ARCH CHIN ING G FOR INV FOR INVES ESTME TMENT NT OPPOR OPPORTUNI TUNITIE TIES S IN IN THE THE REGI REGION ON

G R O W T H O P T I O N S

Diversification:

• Hydrological Conditions
• Generation Technology
• Fuel Access
• Regulation

Special Focus on Colombia and Peru Growing Electricity Consumption Well established regulatory framework

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Coal Hydro NCRE under study 500 MW equivalent of water rights under study

GR GROWT WTH H OPP OPPOR ORTUNITIE TUNITIES S IN CHILE IN CHILE: : BASE ASE LOAD AD CA CAPACITY CITY AN AND D RENEWAB RENEWABLE LES

P R O J E C T S

34 MW

La Mina

Run-of-the-river / NCRE

350 MW

Santa María II

Coal

170 MW

San Pedro

Reservoir 14

DISCLAI DISCLAIMER MER AN AND D CO CONT NTACT INFORM CT INFORMATION TION

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 analysis. This presentation may contain forward-looking statements concerning Colbún's future performance and should be considered as good faith estimates by Colbún S.A. In compliance with the applicable rules, Colbún S.A. publishes on its Web Site (www.colbun.cl) and sends the financial statements of the Company and its corresponding notes to the Superintendencia de Valores y Seguros, those documents should be read as a complement to this presentation.

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INVES INVESTOR OR RELA RELATI TIONS ONS

TEAM CONTACT Miguel Alarcón

malarcon@colbun.cl + 56 2 2460 4394

Verónica Pubill

vpubill@colbun.cl + 56 2 2460 4308