C OMPANY P RESENTATION 2Q 2013 Agenda Company Overview Business - PowerPoint PPT Presentation

C OMPANY P RESENTATION 2Q 2013

Agenda Company Overview Business Strategy Financial Profile Chilean Electricity Sector Overview 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 (SIC), with over 20% market share (MW). Colbún Others 20% 24% The SIC covers 90% of the population AES Capacity 2,962 MW Gener Endesa 43% hydro and 57% thermal 17% 39% Generation 11,568 GWh in 2012 Source: Colbún – December 2012 45% hydro and 55% thermal Generation (GWh) and Installed Capacity (MW) Power plants 15 hydro plants in 4 different basins Generation 7 thermal plants in 4 different regions Capacity Hydro People 976 employees as of March’13 45% 43 57 Thermal % % 55% Results EBITDA of USD 284 million in 2012 EBITDA of USD 451 million LTM Revenues of USD 1.4 billion in 2012 Source: Colbún 2012 Generation and Capacity Revenues of USD 1.6 billion LTM 3

Company Overview A diversified asset base A CONCAGUA B ASIN : 213 MW 7 T HERMAL P OWER P LANTS Chacabuquito Blanco N EHUENCO C OMPLEX : 874 MW 15 H YDRO P OWER P LANTS Capacity: 60 MW Capacity: 29 MW DIESEL/GAS Nehuenco I Juncal Los Quilos Capacity: 368 MW Capacity: 29 MW Capacity: 39 MW Nehuenco II Juncalito Hornitos Capacity: 398 MW Capacity: 1 MW Capacity: 55 MW Nehuenco III C ARENA POWER PLANT : 9 MW Capacity: 108 MW Carena C ANDELARIA POWER PLANT : 270 MW Capacity: 9 MW DIESEL/GAS Candelaria M AULE B ASIN : 630 MW Capacity Unit I : 133 MW Capacity Unit II : 137 MW Colbún Machicura Capacity: 474 MW Capacity: 95 MW S ANTA M ARIA I POWER PLANT : 342 MW COAL San Ignacio Chiburgo Santa María I Capacity: 37 MW Capacity: 19 MW Capacity: 342 MW San Clemente L OS P INOS POWER PLANT : 100 MW Capacity: 5 MW DIESEL Los Pinos L AJA B ASIN : 249 MW Capacity: 100 MW Quilleco Rucúe Capacity: 178 MW Capacity: 71 MW A NTILHUE POWER PLANT : 103 MW DIESEL B IOBIO B ASIN : 316 MW Antilhue Capacity Unit I : 51 MW Angostura Capacity Unit II : 52 MW Capacity: 316 MW T RANSMISSION L INES C HAPO L AKE : 172 MW 261 KM Trunk Transmission System Canutillar Capacity: 172 MW 68 KM Run of the River Combined Cycle Sub Transmission System Open Cycle Reservoir 523 KM 4 Additional Transmission System Coal-fired

Company Overview A diversified customer base R EGULATED C USTOMERS U N- R EGULATED C USTOMERS CODELCO CHILECTRA Salvador (2011- 2021/23/25) CONAFE CODELCO (Until 2015) 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 Total Operating Revenues (MMUSD) Capacity (MW) 2,962 USD 1,409 3.500 1.600 MW million 1.400 3.000 1.200 2.500 1.000 2.000 800 1.500 600 USD 214 1.000 400 1,260 CAGR: 9% million CAGR: 21% 500 MW 200 0 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Market Cap (MMUSD) 3-year Moving Average EBITDA (MMUSD) USD 4,830 6.000 350 USD 273 million 300 million 5.000 250 4.000 200 3.000 150 2.000 USD 618 100 million USD 107 CAGR: 10% 1.000 50 million CAGR: 23% 0 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 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, June 2013 4 out of 9 are independent directors. A CCOUNTING S TANDARDS Disclosure under IFRS standards Functional currency: US dollar 7

Agenda Company Overview Business Strategy Financial Profile Chilean Electricity Sector Overview 8

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, integrating with excellence the economical, technical, environmental and social dimensions. 9

Business Strategy Strategic pillars  Strengthen our organization and people 1. Strengthening  Strengthen our operations  Strengthen our financial position  Narrow our exposure to exogenous variables: diversified asset base 2. Diversification (technology, fuel and location) and clients and Risk  Risk-sharing mechanisms with our strategic clients and suppliers Management  Active risk-management policy  Identify and develop growth options to strengthen our competitive position based on efficient capacity 3. Growth  Commercial strategy that generates long-term returns consistent with our asset base 10

Business Strategy Colbún: a sustainable partner E MPLOYEES I NVESTORS E NVIRONMENT C LIENTS AND C OMMUNITY AND S OCIETY S UPPLIERS C ONTRACTORS AND P ROVIDERS 11

Business Strategy Commercial policy C OMMERCIAL G OALS Supply secure and competitive energy to our customers Maximize returns from our current and future assets Manage volatility given large renewable component 1. CONTRACT LEVEL 2. SALE PRICE INDEXATION 3. HEDGE PROGRAM Define optimal Incorporate indexation Structure tailor-made Contract Level formulas of sale prices hedge programs Hydro capacity that reflect to protect from more (Output of a medium-dry year) our cost structure adverse + Hydro CPI 1) Hydrologic conditions Efficient thermal Efficient thermal Fossil Fuels 2) Fuel prices capacity Transitional periods Flexible Price (Output of coal-fueled plant) 12

Business Strategy Commercial balance evolution Contractual Sales vs. Generation (GWh) 14.000 12.000 983 2.240 10.000 3.118 1.901 2.242 2.563 8.000 GWh 2.418 1.273 1.853 2.658 6.000 95 10.687 10.436 9.834 8.829 4.000 5.566 5.462 5.233 4.861 2.000 0 2010 2011 2012 LTM June 2013 Hidro Coal Gas Diesel Contractual Sales Volume 13

Business Strategy Our expansion plan FINAL STAGES LONG-TERM LNG SUPPLY (expected to begin operations by the end Existing CCGT (766 MW) and existing open-cycles (270 MW) that could be of 2013) optimized, subject to securing a long-term competitive and flexible natural gas supply. ~ 4,300 OTHER GROWTH OPPORTUNITIES Hydro potential MW ~500 MW San Pedro Santa María II 150 MW 342 MW Angostura La Mina* 316 MW 2,962 34 MW MW 53% Hydro capacity (*NCRE) Coal-fired capacity 43% Combined-cycle capacity Open-cycle capacity (natural gas and/or diesel) 14

Business Strategy Our projects under development L A M INA HYDRO POWER PLANT : 34 MW Maule River, Maule Region S ANTA M ARÍA II COAL POWER PLANT : 342 MW L A M INA Coronel, Biobío Region A NGOSTURA A NGOSTURA HYDRO POWER PLANT : 316 MW S ANTA M ARÍA II Santa Barbara and Quilaco, Biobío Region S AN P EDRO I NVESTMENT POWER PLANT: S AN P EDRO HYDRO POWER PLANT : 150 MW 675 MMUSD Riñihue Lake, Los Ríos Region I NVESTMENT TX LINE: 45 MMUSD S PENT AS OF JUN. 2013: 630 MMUSD I NVESTMENT AND SCHEDULE: Under revision A DVANCE JUN. 2013: 93% S PENT AS OF SEP 2012: 112 MMUSD E STIMATE START OF O PERATION: 4Q2013 15

Agenda Company Overview Business Strategy Financial Profile Chilean Electricity Sector Overview 16

Financial Profile Income statement and FCF EBITDA (MMUSD) Selected Sources & Uses of Funds (MMUSD) 500 600 WK Capex EBITDA 451 500 400 331 400 284 300 300 205 200 200 100 100 0 0 2010 2011 2012 June 2013 LTM 2010 2011 2012 June 2013 LTM EBITDA margin (%) Debt (MMUSD) 2.000 50% 40% 1.500 32% 28% 30% 1.000 20% 20% 500 10% 15% 0% 0 2010 2011 2012 June 2013 2010 2011 2012 June 2013 LTM Net Debt Cash 17

Financial Profile Conservative financial strategy Amortization Schedule of LT Debt (MMUSD) Balance Sheet as of June 2013 (MMUSD) Current Assets 760 Cash and equivalents 223 Accounts receivable 184 Recoverable taxes 230 Other current assets 123 Non-Current Assets 5,259 Property, Plant and Equipment 4,955 Other non-current assets 305 Liquidity Position Total Assets 6,020 Cash USD 223 million of cash and cash equivalents as of June 2013. Committed lines Committed back-up facility of UF 4 million (~USD 200 million), unused, Current Liabilities 536 signed with local counterparties. Long-Term Liabilities 1,904 Other sources of liquidity Shareholders' Equity Access to additional USD 150 million in credit lines facilities and a 3,580 registered commercial paper program, which we use from time to time Total Liabilities and Shareholders' Equity 6,020 for working capital optimization purposes 18