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

1Q16 Results Review 2016 COLBÚN A p r i l

A G E N D A HIGHLIGHTS RECENT EVENTS FINANCIAL REVIEW G R O W T H O P T I O N S 2

H I G H L I G H T S 1Q 201 1Q 2016 Hydro Generation Chile EBITDA Revenues 1 2 3 (GWh) (MMUS$) (MMUS$) 14% 2,285 17% 363 170 83% 93 317 2,109 1Q15 1Q16 1Q15 1Q16 1Q15 1Q16 4 5 6 Efficient Capacity over Net Income Net Debt Commitments (%) (MMUS$) (MMUS$) 76 986% 0% 1,182 10% 100 100 1,071 7 1Q15 1Q16 1Q15 1Q16 1Q15 1Q16 3

A G E N D A H I G H L I G H T S RECENT EVENTS FINANCIAL REVIEW G R O W T H O P T I O N S 4

R E C E N T E V E N T S 1Q 201 1Q 2016 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. 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. 5

A G E N D A H I G H L I G H T S RECENT EVENTS FINANCIAL REVIEW G R O W T H O P T I O N S 6

F I N A N C I A L R E V I E W CH CHILE: ILE: PHY PHYSICAL SA SICAL SALE LES S AN AND D GENERA GENERATION TION B BALAN ALANCE Sales Volumes 1Q15 1Q16 QoQ GWh Key Drivers of 1Q16 Regulated Customers 1,734 1,645 (5%) Free Customers 1,048 1,112 6% Lower energy demand from Regulated 2,782 2,757 Total Commitments (1)% Customers Spot Market Sales 327 403 23% 3,109 3,160 2% Total Energy Sales Spot Market 1Q15 1Q16 QoQ Higher hydro, natural gas and coal- GWh Sales 327 403 23% power participation. Purchases 0 0 - 327 403 23% Net Spot Market Base load efficient generation 2014 1Q15 1Q16 QoQ GWh accounted for 100% of commitments 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% 3,195 3,223 1% Total Generation 7

F I N A N C I A L R E V I E W CH CHILE: E ILE: EBI BITD TDA A AN ANAL ALYSIS SIS 1Q15 1Q16 QoQ US$ million Key Drivers of 1Q16 Revenues 317.0 306.9 (3%) Lower Revenues, explained by Lower Raw Materials and (205.2) (132.2) (36%) spot market sales, offset by higher sales Consumables Used to free customers Personnel and other (19.1) (21.2) 11% operating expenses Raw Materials and consumables used EBITDA 92.8 153.3 65% decreased due to lower fuel cost in the EBITDA Margin (%) 29% 50% international markets and lower diesel generation Higher EBITDA: -Better generation mix -Lower fuel costs 8

F I N A N C I A L R E V I E W PE PERU: U: P PHY HYSICAL SA SICAL SALE LES S AN AND D GENERA GENERATION TION B BALAN ALANCE Sales Volumes 1Q15 1Q16 QoQ GWh Key Drivers of 1Q16 676 758 12% Customers Under Contract Total Commitments 676 758 12% A decrease in spot market net 861 477 (45%) Spot Market Sales purchases 1,537 1,235 (20)% Total Energy Sales Spot Market 1Q15 1Q16 QoQ GWh Higher power demand from customers 861 477 (45%) Sales under contract Purchases 510 594 16% 351 (117) - Net Spot Market Generation Annual own generation accounted for 1Q15 1Q16 QoQ GWh 88% of the company’s commitments Thermal – Gas 1,056 663 (37%) Total Own Generation 1,056 663 (37%) 9

F I N A N C I A L R E V I E W PE PERU: U: E EBITD BITDA A AN ANAL ALYSIS SIS 1Q15 1Q16 QoQ US$ million Key Drivers of 1Q16 Revenues 49.5 55.6 12% Revenues from ordinary activities Raw Materials and (30.5) (32.8) 8% increased 12% Consumables Used Personnel and other (0.8) (1.9) 138% operating expenses EBITDA 12.7 16.7 31% Higher income from transmission tolls EBITDA Margin (%) 26% 30% Raw Materials increased explained by higher purchases in the spot market 10

F I N A N C I A L R E V I E W CONSOLID CO NSOLIDATE TED NO D NON-OPERA OPERATING TING INCO INCOME ME AN ANAL ALYSIS SIS 1Q15 1Q16 QoQ US$ million Key Drivers of 1Q16 Financial Income 1.0 2.7 183% 1Q16 had higher financial expenses Financial Expenses (22.2) (27.4) 23% due to the consolidation of Fenix 0.1 - Results of Indexation Units - Power’s debt 0.4 3.0 Exchange Rate Differences 633% Share of profit (loss) from equity- 1.5 1.4 (5%) Higher financial income accounted associates (0.9) (0.5) Other non-operating income/expense 42%) (20.2) (20.8) 3% NON-OPERATING INCOME Favorable exchange rate difference 1Q15 1Q16 QoQ US$ million NET INCOME 7.0 76 986% 11

A G E N D A H I G H L I G H T S RECENT EVENTS FINANCIAL REVIEW GROWTH OPTIONS 12

G R O W T H O P T I O N S SE SEAR ARCH CHIN ING G FOR INV FOR INVES ESTME TMENT NT OPPOR OPPORTUNI TUNITIE TIES S IN IN THE REGI THE REGION ON Special Focus on Colombia and Peru Growing Electricity Consumption Well established regulatory framework Diversification:  Hydrological Conditions  Generation Technology  Fuel Access  Regulation 13

P R O J E C T S GROWT GR WTH H OPP OPPOR ORTUNITIE TUNITIES S IN CHILE IN CHILE: : BASE ASE LOAD AD CAPACITY CA CITY AN AND D RENEWAB RENEWABLE LES 34 MW Hydro La Mina Run-of-the-river / NCRE Coal 350 MW 500 MW equivalent of water Santa María II rights under study Coal 170 MW NCRE under study San Pedro Reservoir 14

DISCLAI DISCLAIMER MER AN AND D CO CONT NTACT INFORM CT INFORMATION TION INVESTOR INVES OR RELA RELATI TIONS ONS This document provides information about Colbún S.A. In no case this document constitutes a comprehensive analysis of the financial, TEAM CONTACT production and sales situation of the company. To evaluate whether to purchase or sell securities of the company, the Miguel Alarcón investor must conduct its own independent analysis. malarcon@colbun.cl + 56 2 2460 4394 This presentation may contain forward-looking statements concerning Colbún's future performance and should be considered as good faith estimates by Colbún S.A. Verónica Pubill vpubill@colbun.cl In compliance with the applicable rules, Colbún S.A. publishes on its + 56 2 2460 4308 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. 16