C OMPANY P RESENTATION 1Q 2012 Agenda Company Overview Chilean - PowerPoint PPT Presentation

C OMPANY P RESENTATION 1Q 2012

Agenda Company Overview Chilean Electricity Sector Business Strategy Financial Profile 2

Company Overview Colbún at a glance Market Share (as a % of Installed Capacity) - SIC Business Power Generation & Trade 2 nd largest generator in Chile’s Central Grid Size Others (SIC), with 21% market share (MW). Colbún 20% 21% The SIC covers 90% of the population AES Capacity 2,620 MW Gener Endesa 18% 52% thermal and 48% hydraulic 41% Generation 9,781 GWh in 2011 Source: CNE – December 2011 45% thermal and 55% hydraulic Generation (GWh) and Installed Capacity (MW) Assets 15 hydro plants in 4 different basins Generation 6 thermal plants in 4 different regions Capacity People 930 employees as of March’11 Thermo 48 52 Hydro 45% % % 55% Results EBITDA of USD 204.7 million in 2011 Revenues of USD 1.3 billion in 2011 Source: Colbún 2011 Generation and Capacity 3

Company Overview A diversified asset base 6 T HERMAL P OWER P LANTS N EHUENCO C OMPLEX : 874 MW A CONCAGUA B ASIN : 213 MW 15 H YDRO P OWER P LANTS DIESEL/GAS Blanco Chacabuquito Nehuenco I Capacity: 60 MW Capacity: 29 MW Capacity: 368 MW Juncal Los Quilos Nehuenco II Capacity: 39 MW Capacity: 29 MW Capacity: 398 MW Juncalito Hornitos Nehuenco III Capacity: 55 MW Capacity: 1 MW Capacity: 108 MW C ANDELARIA POWER PLANT : 270 MW C ARENA POWER PLANT : 9 MW DIESEL/GAS Carena Candelaria Capacity: 9 MW Capacity Unit I : 133 MW Capacity Unit II : 137 MW M AULE B ASIN : 630 MW L OS P INOS POWER PLANT : 100 MW DIESEL Machicura Colbún Capacity: 474 MW Capacity: 95 MW Los Pinos Capacity: 100 MW San Ignacio Chiburgo Capacity: 19 MW Capacity: 37 MW A NTILHUE POWER PLANT : 103 MW DIESEL San Clemente Antilhue Capacity: 5 MW Capacity Unit I : 51 MW Capacity Unit II : 52 MW T RANSMISSION L INES L AJA B ASIN : 249 MW 47 KM Rucúe Quilleco Trunk Transmission System Capacity: 71 MW Capacity: 178 MW 68 KM Sub Transmission System 737 KM C HAPO L AKE : 172 MW Additional Transmission System Canutillar Run of the River Combined Cycle Capacity: 172 MW Open Cycle Reservoir 4

Company Overview A diversified customer base R EGULATED C USTOMERS U N- R EGULATED C USTOMERS CHILECTRA CODELCO (2011- 2021/23/25) Salvador CONAFE CODELCO (Until 2020) Ventanas CGE-Río Maipo ANGLOAMERICAN (2010- 2021) Los Bronces Santiago CGE-Distribución CODELCO (2010- 2024) Andina METRO SAESA AGUAS ANDINAS (2010- 2019) La Farfana CMPC Puente Alto CODELCO Teniente CMPC Procart 5

Company Overview Colbún has grown steadily over the past decade Capacity (MW) Total Operating Revenues (MMUSD) 2,620 US$ 1,333 3000 1600 MW million 1400 2500 1200 2000 1000 1500 800 600 US$ 129 1000 million 1,070 400 CAGR: 8% CAGR: 21% MW 500 200 0 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Market Cap (MMUSD) 3-year Moving Average EBITDA (MMUSD) US$ 4,484 US$ 291 6000 350 million million 300 5000 250 4000 200 3000 150 US$ 54 million 2000 100 US$ 435 CAGR: 21% CAGR: 15% million 1000 50 0 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 6

Company Overview Solid and reliable controlling group with a strategic and long term vision C ONTROL Ownership Structure Controlled by the Matte Group (49%), one of the leading economic groups in Chile, with Angelini stakes in various sectors (forestry, financial, Group telecommunications, among others). 10% Pension L ARGE S TAKEHOLDER Matte Funds The second important stakeholder, the Angelini 18% Group Group, is also a leading Chilean economic group 49% and owns 9.6% of Colbún. Others 23% F LOAT 41% free float, with relevant local institutional investor presence. G OVERNANCE Source: Colbún, December 2011 4 out of 9 are independent directors. A CCOUNTING S TANDARDS Disclosure under IFRS standards Functional currency: US dollar 7

Agenda Company Overview Chilean Electricity Sector Business Strategy Financial Profile 8

Chilean Electricity Sector Sector Segmentation 4 SEPARATE GRIDS 3 SUB-SECTORS SING Arica 3,964 MW - 25% 15.881 GWh - 25% G ENERATION Antofagasta Tal-Tal SIC 12,365 MW - 75% 46.052 GWh - 74% T RANSMISSION Santiago Regulated sectors (concessions) D ISTRIBUTION Castro Chaitén SEA 52 MW - 0% 146 GWh - 0% R ELEVANT I NSTITUTIONS Cochrane Ministry of Energy Pto. Natales Regulator: CNE SAM 100 MW - 0% Supervisor: SEC 276 GWh - 0% Pto. Coordinator: CDEC Williams 9 Source: CNE, December 2011

Chilean Electricity Sector Market Structure Electricity Market Structure Main Players in the Generation Sector-SIC G ENERATORS 41% >15 R EGULATED U NREGULATED S POT players C USTOMERS C USTOMERS M ARKET 21% 18% 17% D ISTRIBUTION “F REE ” CDEC C OMPANIES C USTOMERS 2% 1% Regulated Unregulated Marginal Cost Endesa Colbún Gener Arauco CGE Others Auction Auction /Spot Price Tariffs Tariffs Source: “ Capacidad Empresas Generadoras CDEC, December 2011 10

Chilean Electricity Sector Evolution of Power Generation and Demand in the SIC Annual Power Generation-SIC (TWh) Annual Electricity Demand-SIC (TWh) 50 Others 50 Unregulated Demand Regulated Demand Diesel-Fuel LNG 45 45 Gas Diesel 8% Coal /Petcoke 40 40 Hydro 35 35 Unregulated: ~ 40 % LNG 22% Gas 0% 30 30 25 Coal 23% 25 20 20 2012 Regulated: ~ 60 % 1Q12 YoY monthly growth 4% 15 15% 15 7% Hydro 45% 10% 42% 10 24% 10 5% 5 0% 5 23% J F M A M J J A S O N D 0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: “ Producción Real por Sistema ”, CNE/Colbún, 2012. Source: “ Generación Bruta en el SIC”, CNE/Colbún, 2012. “ Informe Tecnico Definitivo SIC” , CNE, October 2011 . 11 “ Informe Systep ” , Systep, 2012

Chilean Electricity Sector Dispatch and pricing model: a technical guide Dispatch Model Dispatch Scheme O BJECTIVE Meet demand at the lowest cost possible Demand Curve Variable Cost of the Plants (USD/MWh) I NSTITUTION Independent load dispatch center ( CDEC ) coordinates the efficient dispatch of electricity Thermo-Diesel producers M ODEL CDEC dispatches plants in ascending order of variable production cost OC-Diesel CC-Diesel Pricing Model SPOT PRICE CC-LNG Marginal Cost of Prices vary according to the type of customer: the System R EGULATED C USTOMERS Coal 1) Node Price: calculated by the CNE every 6 months Hydro 2) Auction Price: auctioned under the supervision of the Regulator for bilateral LT contracts Output from available plants (MWh) U NREGULATED C USTOMERS Back Up Plants Dispatched Plants 3) Market Price: free price settled by both parties for bilateral contracts Plants receive revenues from Capacity charge O THER G ENERATORS 4) Spot Market Price: the variable cost of the most Plants earn a Margin* expensive dispatched plant at each moment of the day *Margin = [Spot Price - Var. Cost] All facilities are also paid a capacity charge for being available 12

Chilean Electricity Sector Evolution of electricity prices Electricity Prices-SIC (USD/MWh) 350 1) Energy Node Price Alto Jahuel (USD/MWh) 300 2) Average Auction price (USD/MWh) 3) Average Market price (USD/MWh)* 250 4) Energy Spot Market Price Alto Jahuel (USD/MWh) 200 150 100 50 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: “ Costos reales marginales mensuales Alto Jahuel ”, CDEC/ Colbún; “ Historia precios nudos ”, CNE; “ Informes Mensuales Systep ”, www.systep.cl Note (*): The market Price is calculated by the Regulator upon information provided by all generation companies. This average price does not includes the capacity charge component. 13

Chilean Electricity Sector Demand and Supply: what to expect in the coming years Electricity Demand - SIC (TWh) Available Power by type - SIC (MW) Hydro (1) Wind Coal Gas (2) Diesel Max demand 60 16000 Min demand Average demand Additional installed capacity: Additional installed 14000 600 MW Hydro capacity: 50 20 MW Wind 112 MW Hydro 927 MW Coal 143 MW Wind ~41.0 TWh 12000 85 MW Diesel 39.6 TWh 39.4 TWh 518 MW Coal 3.5% 108 MW Gas -1.0% -0.4% 40 1,473 MW Diesel 10000 30 8000 6000 20 4000 10 2000 0 0 2008 2009 2010 2011 2012 2013 2014 2008 2009 2010 2011 2012 2013 2014 Source: “ Informe Técnico Definitivo Fijación Precio Nudo SIC” , CNE/Colbún, October 2011 Source: “ Informe Técnico Definitivo Fijación Precio Nudo SIC” , CNE/Colbún, October 2011 (1) Considering normal hydro conditions (2) Real gas output depends on fuel availability 14

Agenda Company Overview Chilean Electricity Sector Business Strategy Financial Profile 15

Business Strategy Corporate Strategy Who are we? We are a Chilean company, leader in the generation of reliable, competitive and sustainable energy What do we do? We seek to generate long-term value by developing projects and managing power infrastructure to meet the country’s energy demand. 16