1Q-2019 CORPORATE PRESENTATION
Company Overview 1
AES GENER AT A GLANCE IMPROVING LIVES IN LAUNCHING $2.3B $887M Chile, MARKET CAP Greentegra EBITDA AS OF Mar 31, 2018 LTM 1Q-2019 Strategy Colombia AND + 4,500 MW Argentina $8.3B $3.8B TOTAL ASSETS CONS. DEBT Growth PIPELINE OWNED & MANAGED FY-2018 in Chile & Colombia RATED AES Corporation Baa3 / BBB- / BBB- BY 5,103 MW Currently owns 66.7% MOODY’S S&P GLOBAL FITCH RATINGS in operation Technologies Market Share 3,440 Dow Jones 1,020 Coal 3,019 MW Chile 23% by generation Colombia 7% by generation Hydro 1,291 MW Sustainability 643 Argentina 3% by generation Gas / Diesel 709 MW Index for Chile Others 34 MW 561 MW Commercial Business Largely LISTED ON under construction Santiago Stock Contracted (Alto Maipo, Exchange Virtual Dam EFFICIENT GENERATION CONTRACTED WITH AN Catilla Solar) AVERAGE LIFE OF 10 YEARS IN CHILE 3
KEY INVESTMENT CONSIDERATIONS 1 ATTRACTIVE MARKETS 2 DIVERSIFIED PORTFOLIO 3 HIGH QUALITY LONG TERM PPAs 4 NEW TRANSFORMATIONAL STRATEGY 5 STRONG FINANCIAL PERFORMANCE 4
1 ATTRACTIVE MARKETS Chile RATINGS SYSTEM DATA ENERGY DEMAND GENERATION BY FUEL TYPE (3) ~19M Thermal S&P Regulated NCRE Unregulated 54% 43% 16% inhabitants A+ 24,853 MW 57% ~$298B Installed GDP as of 2019 +2.5% Capacity 71,564 76,581 Moody’s GWh GWh Energy Sales Growth A1 (CAGR 2007-2017) 76,581 GWh Generation Fitch Hydro A 30% The SING (2) and the SIC (1) were interconnected in November 2017 to comprise the SEN (4) The SEN is expected to become fully operational in June 2019, once the last segment of the Cardones-Polpaico transmission line is completed Source: Company. As of March 2019 (1) Central Interconnected System (Sistema Interconectado Central). 5 (2) Great North Interconnected system (Sistema Interconectado del Norte Grande). (3) Non-conventional Renewable Energy including Wind, Solar, Geothermal and Biomass (4) National Electrical System (Sistema Eléctrico Nacional).
1 ATTRACTIVE MARKETS Colombia RATINGS SYSTEM DATA ENERGY DEMAND GENERATION BY FUEL TYPE +2.2% ~50M Hydro Thermal 17,237 MW Unregulated Regulated S&P BBB- 81% 19% 32% 68% inhabitants Moody’s Installed Capacity Energy Demand 69,837 64,789 Baa2 ~$330B Growth GWh GWh Fitch GDP as of 2018 64,789 GWh (CAGR 2014-2018) BBB LTM Generation Argentina RATINGS SYSTEM DATA ENERGY DEMAND GENERATION BY FUEL TYPE +1.2% S&P ~45M (1) NCRE 3% Comercial Thermal 38,538 MW Residential B 28% 64% 43% Nuclear 4% inhabitants Installed Capacity Energy Demand Moody’s 134,276 130,535 ~$539B B2 Growth GWh GWh GDP as of 2018 Fitch 134,276 GWh (CAGR 2013-2018) Hydro Industrial B 29% 29% LTM Generation Source: Company. As of March 2019 (1) Non-conventional Renewable Energy including Wind, Solar and Biomass 6
2 DIVERSIFIED Portfolio EBITDA COUNTRIES CUSTOMERS TECHNOLOGY Argentina Diesel/Gas Regulated/ Argentina Unregulated 7% 13% 14% Hydro 27% $887 5,103 27.2 5,103 20% 70% 30% mm MW (1) TWh/y MW (1) 25% 59% 2% 67% Coal 66% Chile Solar/ Colombia Biomass/ Spot Chile BESS ( Source: Company. 7 (1) Includes Battery Energy Storage System (BESS) LTM 1Q-2019 Figures
3 CHILE Commercial Strategy 20,000 Distribution Mining 25% 68% Commercial strategy aims to maximize 10 year cash flow while minimizing volatility Avg. 15,000 Contract Industrial Life GWh per Year 7% Optimal contracted position seeks to match contracted energy with long term 10,000 efficient generation Contract customers include regulated 5,000 customers (distribution companies) and unregulated customers (mining, commercial and industrial) - 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Distribution Non Regulated Contracts include Price ~10 years average indexation mechanisms life of outstanding (coal and US CPI) and pass-through provisions contracts (regulatory risks) 8
3 COLOMBIA & ARGENTINA Commercial Strategy ENERGY SALES Medium & Long ~80% of Expected Term Contracts Generation 45% (1-15 Years) 7,343 Colombia Spot and Frequency Remaining Regulation Sales GWh Generation 55% Firm Energy Reliability Charge (~3,000 GWh) Revenue Contract Spot ENERGY SALES 22% Energía Plus Contract Energy Contracts Argentina 4,204 GWh Remaining Energía Base Energy & Capacity Spot Sales to ISO 78% Contract Spot 9 LTM 1Q-2019 Figures
TRANSFORMATIONAL STRATEGY 4 GREENTEGRA Integrating Renewables Into Our Portfolio, Leveraging On Existing Competitive Advantages Gr Gree eente ntegra Scope of Commercial Opportunities Tak ake or e or Pay PP ay PPAs Con onven entiona tional l PP PPAs Ren enewa ewable ble PP PPAs ~10.5 TW ~10.5 TWh /year ~3.2TWh /year ~3.2TW ~2.3TW ~2.3TWh /year Fixed charge + Fixed price Fixed price Pass-through of variable costs Through GenerFlex we are targeting new Blextend aims to incorporate renewable Coal to Green aims to green the mining customers to integrate PPAs and cutting- output into the supply of energy while sector by replacing existing variable edge technology including energy extending the life of existing conventional charge with a fixed price component management, storage and distributed PPAs, delivering a price competitive 24/7 backed by renewables energy to provide energy solutions in line energy solution with the needs of an evolving market. 10
4 ADVANCING WITH STRATEGY EXECUTION GREENTEGRA EXECUTING COMMERCIAL STRATEGY 2.7 TWh/y 1.1 TWh/y 23% EXECUTED TO DATE EXECUTED TO DATE 4-18 YEARS 10-15 YEARS 16 TWh/y Greentegra ADDRESSABL E MARKET ADVANCING NEGOTIATIONS TO SECURE ADDITIONAL AGREEMENTS 11
4 ADVANCING WITH STRATEGY EXECUTION +4,500 MW PIPELINE ACCELERATING A GREENER ENERGY FUTURE 562 MW 290 MW 3,747 MW UNDER READY UNDER TO BUILD IN 2019 CONSTRUCTION DEVELOPMENT Hydro 531 MW Wind 210 MW 3,127 MW Solar 21 MW 80 MW 380 MW Batteries 10 MW 240 MW 12
4 ADVANCING WITH STRATEGY EXECUTION ALTO MAIPO ON TRACK 78% PROJECT 2018 LATIN AMERICAN REFI EFINANCING NCING DEA EAL COMPLETE OF THE YEAR 54 Km Tunnelling 72% 100% Las Lajas Alfalfal II 80% 13
4 ADVANCING WITH STRATEGY EXECUTION CASTILLA - ECOPETROL THE LARGEST SOLAR SELF-GENERATION PROJECT IN COLOMBIA COD COD 21 21 MW UNDER SEPTEMBER 2019 MW CONSTRUCTION ON TRACK 14
4 ADVANCING WITH STRATEGY EXECUTION VIRTUAL DAM PILOT CONSTRUCTION STARTED VIRTU VIR TUAL AL DAM AM a DAM of ENERGY Run-of-River BATTERIES HYDRO PLANT 10 MW PILOT 5 HOURS COD 1Q-2020 15
4 ADVANCING WITH STRATEGY EXECUTION SECURING REVENUES FOR PROJECTS CASA ELÉCTRICA AWARDED RELIABILITY CHARGE 648 MW Jemeiwaa-Kai Project AWARDED • Irraipa 99 MW 20-YEAR • Casa Eléctrica 180 MW RELIABILITY CHARGE • Carrizal 195 MW 324 GWh/y @ $15.1 /MWh • Apotolorru 75 MW • Jotomana 99 MW 16
4 ADVANCING WITH STRATEGY EXECUTION NCRE INVESTMENTS IN CHILE 290 MW TO SUPPORT COMMERCIAL AGREEMENTS 2019 2020 ANDES SOLAR II COD NTP SOLAR Dec 2019 May 2019 80 MW MESAMÁVIDA COD NTP WIND 2Q-2020 Jun 2019 40 MW LOS OLMOS WIND NTP COD 90 MW Aug 2019 3Q-2020 CAMPO LINDO NTP COD WIND Nov 2019 4Q-2020 80 MW 17
4 AES GENER LEADING DECARBONIZATION WITH RELIABLE RENEWABLE ENERGY 37% 27% TODAY TODAY+PROJECTS 5.1 GW 5.9 GW 51% 59% 13% 62% INCLUDING 1% PIPELIN PIPEL INE 11% 1% RENEWABLES & ENERGY STORAGE NATURAL GAS DIESEL COAL 18
5 HIGHEST EVER EBITDA GENERATION SUPPORTED BY LT CONTRACTED POSITION $213mn CONVENTIONAL PPAs (Energy and Capacity) 8 years average life $59 mn 1Q-2019 $589 mn LTM EBITDA $887mn $376mn $239 mn TOLLING AGREEMENTS (Energy and Capacity) 19 13 years average life
ROBUST CAPITAL STRUCTURE 5 ASSET SALES AND DEBT PREPAYMENTS Realized Attractive Valuations On Non-Core Assets Asset Sales Debt Prepayments sale of $528mn ELÉCTRICA $307mn SANTIAGO ~15x EV/EBITDA Debt Prepaid (1) 316km Net Debt/ EBITDA (2) $225mn 3.7x Sale of regulated ~15x EV/EBITDA TRANSMISSION LINES 20 Source: Company Filings. (1) Debt prepaid in 2017 and 2018 (2) As of March 31, 2019
5 AES GENER DEBT PROFILE $3,770MN AS OF MARCH 31, 2019 AVERAGE AVERAGE NET DEBT/ RATE COST LIFE EBITDA Recourse Debt Non-Recourse Debt $1,338 mn $3,770mn $2,432 mn 3.7x 18 1.8x 94% 35% 5.8% 65% (Consolidated) (Recourse Debt) Years Fixed Rate 2,199 Amortization Schedule ($mn) 730 352 340 192 213 214 1,469 184 184 152 145 29 35 92 24 21 155 160 149 121 123 126 128 2019 2020 2021 2022 2023 2024 2025 2026/2079 21
5 STRONG FINANCIAL PERFORMANCE IFRS LTM 1Q-2019 FIGURES EBITDA & EBITDA margin Total Debt and Net Debt / EBITDA 34% 33% 34% 34% 4.4x 4.3x 887 887 3.7x 3.6x 793 778 3,824 3,770 3,741 55 59 3,525 29 25 241 239 172 174 1,337 1,626 1,353 1,179 581 591 591 589 2,387 2,432 2,346 2,198 2016 2017 2018 LTM 1Q-19 2016 2017 2018 LTM 1Q-19 Chile Colombia Argentina EBITDA Margin PF/Non-Recourse Corporate Debt Net Debt/EBITDA Total CAPEX Capital Allocation 806 798 776 351 377 471 562 565 543 497 248 184 184 102 261 263 215 93 74 53 2016 2017 2018 LTM 1Q-19 2016 2017 2018 LTM 1Q-19 Equity Contribution Dividends Paid Debt Payment 22 22
APPENDIX 2 Alto Maipo
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