C OMPANY P RESENTATION 1Q 2013 Agenda Company Overview Business - PowerPoint PPT Presentation

C OMPANY P RESENTATION 1Q 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) Assets 15 hydro plants in 4 different basins Generation 7 thermal plants in 4 different regions Capacity Hydro People 968 employees as of March’13 45% 43 57 Thermal % % 55% Results EBITDA of USD 284 million in 2012 EBITDA of USD 347 million LTM Revenues of USD 1.4 billion in 2012 Source: Colbún 2012 Generation and Capacity Revenues of USD 1.4 billion LTM 3

Company Overview A diversified asset base 7 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 S ANTA M ARIA I POWER PLANT : 342 MW COAL Machicura Colbún Santa María I Capacity: 474 MW Capacity: 95 MW Capacity: 342 MW San Ignacio Chiburgo Capacity: 19 MW Capacity: 37 MW L OS P INOS POWER PLANT : 100 MW DIESEL San Clemente Los Pinos Capacity: 5 MW Capacity: 100 MW L AJA B ASIN : 249 MW A NTILHUE POWER PLANT : 103 MW DIESEL Rucúe Quilleco Antilhue Capacity: 71 MW Capacity: 178 MW Capacity Unit I : 51 MW Capacity Unit II : 52 MW C HAPO L AKE : 172 MW T RANSMISSION L INES Canutillar 47 KM Capacity: 172 MW Trunk Transmission System 68 KM Run of the River Combined Cycle Sub Transmission System Open Cycle Reservoir 737 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 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) 2,962 US$ 1,409 3.500 1.600 MW million 1.400 3.000 1.200 2.500 1.000 2.000 800 1.500 600 US$ 129 1.000 400 1,070 CAGR: 8% million CAGR: 20% 500 MW 200 0 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Market Cap (MMUSD) 3-year Moving Average EBITDA (MMUSD) US$ 4,830 6.000 350 US$ 273 million 300 million 5.000 250 4.000 200 3.000 150 2.000 US$ 54 100 US$ 435 million CAGR: 20% CAGR: 13% million 1.000 50 0 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1999 2000 2001 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 19% Group Group, is also a leading Chilean economic group 49% and owns 9.6% of Colbún. Others 22% F LOAT 41% free float, with relevant local institutional investor presence. G OVERNANCE Source: Colbún, December 2012 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  Identify and develop project options to consolidate our market share. 3. Growth  Commercial strategy that generates long-term returns consistent with our asset base.  Narrow our exposure to exogenous variables: diversified asset base 2. Diversification (technology, fuel and location) and clients. and Risk Management  Active risk management policy.  Consolidate our people, our operations, our projects, our financials… 1. Consolidation Long-term value generation (Profitability/EBITDA) 10

Business Strategy Value Chain Operational Risk / Return Project Development Excellence Profile Multidimensional High Risk / return profile challenge: standards: combining: Technical Reliability Commercial policy + + + Environmental / Social Security Financial strength + + + Financial Environmental Risk management Sustainability Value & Trust 11

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 12

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) 13

Business Strategy Evolution of Colbún’s Business Model Contractual MMUSD GWh Commitments 12.000 500 446 450 “Base” 10.000 Generation 400 337 331 350 8.000 284 300 236 6.000 250 211 205 200 170 156 4.000 128 150 109 100 2.000 (58%) (60%) (60%) (48%) (45%) (59%) (1%) (18%) (29%) (32%) (15%) (20%) 50 EBITDA 19 (EBITDA Margin) 144% 125% 112% 97% 90% 92% 53% 70% 70% 87% 67% 74% 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Ratio: Base Generation / Base Generation 1 / Commitments 2 ≥ 90% B.G. / C ≤ 70% B.G. / C ≥ 85% Commitments 1: Commitments represent Colbún’s committed sales (through contracts) excluding commitments which price is indexed to the spot price 2: Base Generation represents Colbún’s electricity production @ low variable cost (hydro generation + gas generation pre-2007 and coal generation afterwards) 14

Business Strategy Our expansion plan UNDER UNDER CONSTRUCTION DIFFERENT STAGES OF DEVELOPMENT ~ 4,300 Hydro potential MW ~500 MW San Pedro Santa María II 150 MW 342 MW La Mina* Angostura 34 MW 316 MW 2,962 MW OTHER GROWTH OPPORTUNITIES Existing CCGT (766 MW) and existing open-cycles that could be combined (270 MW), subject to securing a long-term competitive and flexible natural gas supply. 53% Hydro capacity (*NCRE) Coal-fired capacity 43% Combined-cycle capacity Open-cycle capacity (natural gas and/or diesel) 15

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 MAR. 2013: 593 MMUSD I NVESTMENT AND SCHEDULE: Under revision A DVANCE MAR. 2013: 88% S PENT AS OF SEP 2012: 112 MMUSD E STIMATE START OF O PERATION: 4Q2013 16

Agenda Company Overview Business Strategy Financial Profile Chilean Electricity Sector Overview 17