4Q-2018 CORPORATE PRESENTATION
Company Overview 1
AES GENER AT A GLANCE LEADING GENCO CONTROLLED BY THE AES CORPORATION AES Gener Is Energized By A IMPROVING LIVES IN Regional Workforce Of $2.3B $887M Chile, MARKET CAP EBITDA +1,300 PEOPLE AS OF Dec 31, 2018 FY-2018 Colombia AND RECOGNIZED AS A Great Place Argentina To Work in $7.9B $3.5B TOTAL ASSETS CONS. DEBT OWNED & MANAGED FY-2018 CHILE COLOMBIA ARGENTINA RATED Founded In 1981 Baa3 / BBB- / BBB- BY 5,103 GROSS MW And Acquired by MOODY’S S&P GLOBAL FITCH RATINGS in operation The AES Corporation in 2000, Technologies Market Share 3,388 Who Currently owns 66.7% Named to 1,020 Coal 3,019 MW Chile 27% by generation Dow Jones Colombia 7% by generation Hydro 1,291 MW 643 Sustainability Argentina 3% by generation Gas/Diesel 709 MW Others 34 MW 561 Index for Chile GROSS MW Commercial Business Largely under LISTED ON Contracted construction Santiago Stock (Alto Maipo EFFICIENT GENERATION CONTRACTED WITH AN Exchange Project in Chile) AVERAGE LIFE OF 11 YEARS IN CHILE 3
KEY INVESTMENT CONSIDERATIONS 1 LEADING POSITION 2 DIVERSIFIED PORTFOLIO 3 HIGH QUALITY LONG TERM PPAs 4 NEW TRANSFORMATIONAL STRATEGY 5 ROBUST CAPITAL STRUCTURE 6 STRONG FINANCIAL PERFORMANCE 4
MARKET OVERVIEW Chile RATINGS SYSTEM DATA ENERGY DEMAND GENERATION BY FUEL TYPE (3) ~18 M NCRE Thermal S&P Unregulated Regulated 54% 15% +1.6% 54% 46% inhabitants A+ 24,031 MW ~$267B Installed SIC (1) Energy Sales GDP as of 2017 Capacity (CAGR 2014-2017) 72,265 75,641 Moody’s GWh GWh A1 +2.3% 75,641 GWh SING (2) Energy Sales Generation Fitch (CAGR 2014-2017) Hydro A 31% 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. (1) Central Interconnected System (Sistema Interconectado Central). 5 (2) Great North Interconnected system (Sistema Interconectado del Norte Grande). (3) Non-conventional Renewable Energy. (4) National Electrical System (Sistema Eléctrico Nacional).
MARKET OVERVIEW Colombia RATINGS SYSTEM DATA ENERGY DEMAND GENERATION BY FUEL TYPE 17,212 MW +2.2% ~49 M Hydro Thermal Regulated Unregulated S&P BBB- 84% 16% 68% SIN Installed 32% inhabitants Moody’s SIN Demand Growth Capacity 67,456 68,943 Baa2 ~$310B (CAGR 2014-2018) GWh GWh Fitch GDP as of 2017 68,943 GWh BBB SIN Generation Argentina RATINGS SYSTEM DATA ENERGY DEMAND GENERATION BY FUEL TYPE +1.2% S&P ~44 M (1) NCRE 2% Thermal 38,538 MW SADI Industrial Residential B 64% 28% 43% inhabitants Nuclear 5% Installed Capacity SADI Demand Moody’s 137,482 134,784 ~$635B B2 Growth GWh GWh GDP as of 2017 Fitch 137,482 GWh (CAGR 2013-2018) Hydro Comercial B 29% SADI Generation 29% 6
MARKETS OVERVIEW 2018 FIGURES COLOMBIA ($241mn EBITDA) ENERGY SALES GENERATION 22% SIN $413mn 4,977GWh CHILE ($591mn EBITDA) 78% 100% ENERGY SALES GENERATION Hydro Contract Spot SIN ASSETS, 1,020 MW 1% 8% 7% 24% CHIVOR, 1,000 MW, hydro SEN TUNJITA, 20 MW, hydro $1,743mn 14,324GWh ARGENTINA ($55mn EBITDA) 69% ENERGY SALES GENERATION 91% Thermal Other Hydro Regulated Unregulated Spot SEN ASSETS, 3,388 MW SADI NORGENER, 277 MW, coal SAD $146mn 4,150GWh ANGAMOS, 558 MW, coal 50% 50% COCHRANE, 550 MW, coal ANDES SOLAR, 22MW solar PV VENTANAS, 872 MW, coal 100% GUACOLDA, 763 MW, coal Thermal HYDROS, 271 MW Contract Spot SADI ASSETS, 643 MW OTHERS, 76 MW, diesel, biomass TERMOANDES, 643 MW, gas 7
DIVERSIFIED Portfolio EBITDA COUNTRIES CUSTOMERS TECHNOLOGY Argentina Diesel/Gas Regulated/ Argentina Unregulated 6% 13% 14% 70% Hydro 27% $887 5,103 27.6 5,103 20% mm MW (1) TWh/y MW (1) 25% 59% 2% 67% Coal 30% Chile 67% Solar/ Colombia Biomass/ Spot Chile BESS (2) Source: Company. 8 (1) Includes Battery Energy Storage System. (2) Battery Energy Storage System.
PORTFOLIO OVERVIEW 5,103MW GEO & TECH DIVERSIFIED LEADING ENERGY MAJOR PLAYER IN EFFICIENT OPERATION PRODUCER IN CHILE (3,388MW) COLOMBIA (1,020 MW) IN ARGENTINA (643 MW) Ventanas, 872MW Guacolda, 763MW Termoandes, 643MW Chivor, 1,000MW 4 coal units 5 coal units Combined Cycle 8 hydro units Turbines: 2 gas, 1 steam Valparaiso Huasco Bocaya COD : 1964/1977/2010/2013 COD:1995/1996/2009 Salta COD: 1977/1982 2010/2015 COD: 1999 Angamos, 558MW Cochrane, 550MW Tunjita, 20MW 2 coal units 2 coal units 1 hydro unit Bocaya Mejillones Mejillones COD: 2016 COD: 2016 COD: 2011 Norgener, 277MW Hydro Plants ENERGY STORAGE 2 coal units 271MW 4 run of river hydro Tocopilla CHILE ( 52 MW) COD:1995/1997 units Cajon del Maipo COD:1923/1928/1944/1991 Energy Storage Andes Solar, 22MW Backup Plants, 76MW : 52MW PV solar Laguna Verde 63MW Diesel Norgener 12MW Adjacent to Andes Laja 13MW Biomass Angamos 20MW substation Cochrane 20MW COD: 2016 9
ADVANCING WITH STRATEGY EXECUTION +3,900 MW PIPELINE ACCELERATING A GREENER ENERGY FUTURE 561 MW 290 MW 3,127 MW UNDER READY UNDER TO BUILD IN 2019 CONSTRUCTION DEVELOPMENT Hydro 531 MW Wind 210 MW 2,717 MW Solar 20 MW 80 MW 170 MW Batteries 10 MW 240 MW 10
GREENING CHILE ANNOUNCING NCRE INVESTMENTS 290 MW TO SUPPORT COMMERCIAL AGREEMENTS ANDES AND ES SOLAR II SOLAR II SOLAR 80 MW WIND 80 MW CAMPO CA MPO LINDO LINDO SANTIAGO WIND WIND 40 MW 90 MW MESAMAVID MESAM VIDA LOS OS OLMO OLMOS 11
GREENING CHILE ANNOUNCING VIRTUAL DAM PILOT BROADENING BATTERY SOLUTIONS Converting run-of-river plants into 52 MW VIRTUAL RESERVOIRS capacity of batteries EXISTING SPINNING RESERVE 10 MW PILOT 5 HOUR PIONEERS IN CHILE SINCE 2009 COD MARCH 2020 12
ADVANCING WITH STRATEGY EXECUTION CASTILLA - ECOPETROL THE LARGEST SOLAR SELF-GENERATION PROJECT IN COLOMBIA 20 20 MW COD COD UNDER MW CONSTRUCTION OCTOBER 2019 13
AES GENER LEADING DECARBONIZATION WITH RELIABLE RENEWABLE ENERGY 37% 27% TODAY TODAY+PROJECTS 5.1 GW 5.9 GW 51% 59% 13% 59% INCLUDING PIPELIN PIPEL INE 1% 11% 1% RENEWABLES & ENERGY STORAGE NATURAL GAS DIESEL COAL 14
STRATEGY 5 5 Business TECHNOLOGIES SOLUTIONS ENERGY PROVIDER NCRE Hydro of choice in South America Thermal Investment GRADE RATING 15 Battery Desal
CHILE Commercial Strategy 20,000 Distribution Mining 25% 68% Commercial strategy aims to maximize 11 year cash flow while minimizing volatility Avg. 15,000 Contract Life Industrial 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 ~11 years average indexation mechanisms life of outstanding (coal and US CPI) and pass-through provisions contracts (regulatory risks) 16
COLOMBIA & ARGENTINA Commercial Strategy ENERGY SALES Medium Term ~80% of Expected Contracts Generation 43% (1-4 Years) 7,513 Colombia Spot and Frequency Remaining GWh Regulation Sales Generation 57% Firm Energy Reliability Charge (~3,000 GWh) Revenue Contract Spot ENERGY SALES 23% Energía Plus Contract Energy Contracts Argentina 4,181 GWh Remaining Energía Base Generation Spot Sales to ISO 77% Contract Spot 17 FY-2018 Figures
STRONG Financial Performance IFRS (2018 Figures) Total Debt and Net Debt / EBITDA EBITDA & EBITDA margin 32% 34% 33% 34% 4.4x 4.4x 4.3x 887 3.6x 793 778 3,824 3,741 55 691 3,525 3,340 29 25 241 19 172 174 1,626 1,353 246 1,179 1,552 581 591 591 426 2,387 2,346 2,198 1,788 2015 2016 2017 2018 2015 2016 2017 2018 Chile Colombia Argentina EBITDA Margin PF/Non-Recourse Corporate Debt Net Debt/EBITDA Total CAPEX Capital Allocation 1,002 806 798 109 606 565 562 497 351 471 92 83 100 893 106 235 248 184 479 465 391 102 261 279 263 93 74 53 2015 2016 2017 2018 2015 2016 2017 2018 Construction Maintenance Equity Contribution Dividends Paid Debt Payment 18
AES GENER DEBT PROFILE $3,525MN AS OF DECEMBER 31, 2018 AVERAGE AVERAGE NET DEBT/ RATE COST LIFE EBITDA Recourse Debt Non-Recourse Debt $1,179 mn $3,525mn $2,346 mn 3.6x 14 1.7x 94% 33% 5.8% 67% (Consolidated) (Recourse Debt) Years Fixed Rate 1,902 Amortization Schedule ($mn) 514 350 340 272 192 214 1,388 182 182 151 152 145 29 34 24 21 153 158 148 128 121 124 126 2019 2020 2021 2022 2023 2024 2025 2026/2073 19
APPENDIX 2 Alto Maipo
ALTO MAIPO OVERVIEW Project Layout Overview Las Alfalfal II. 264MW Unit 1 Technical Aspects Alfalfal II VL-8 Lajas Las Lajas. 267MW Unit 2 L1 VA-1 Tunnel Installed capacity (MW) 264 267 2 VL-4 Number of units 2 2 1 VA-2 Type of turbines Pelton Pelton Voltage (kV) 12/220 12/110 Main Contractors Ownership VA-4 AES Project Location V5 Metropolitan Region Gener 93% V1 Strabag 7% 21
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