AES GENER 3Q-2017 EARNINGS CALL November 2, 2017 Disclaimer This - PowerPoint PPT Presentation

AES GENER 3Q-2017 EARNINGS CALL November 2, 2017

Disclaimer This presentation is not an offer for sale of securities. This material has been prepared solely for informational purposes and is not to be construed as a  solicitation or an offer to buy or sell any securities and should not be treated as giving investment advice. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. Any opinions expressed in this material are subject to change without notice and neither the Company nor any other person is under obligation to update or keep current the information contained herein. The information contained herein does not purport to be complete and is subject to qualifications and assumptions, and neither the Company nor any agent can give any representations as to the accuracy thereof. The Company and its respective affiliates, agents, directors, partners and employees accept no liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of this material. This presentation may contain statements that are forward-looking subject to risk and uncertainties and factors, which are based on current expectations  and projections about future events and trends that may affect the Company’s business. Investors are cautioned that any such forward looking statements are not guarantees of future performance. Several factors may adversely affect the estimates and assumptions on which these forward-looking statements are based, many of which are beyond our control. The successful execution and commencement of operation of the investment projects that we are developing or constructing depends on numerous external factors, including (i) delays in obtaining regulatory approvals, including environmental permits; (ii) court rulings against governmental approvals already granted, such as environmental permits; (iii) shortages or increases in the price of equipment reflected through change orders, materials or labor; (iv) the failure of contractors to complete or commission the facilities or auxiliary facilities by the agreed-upon date; (v) opposition by local and/or international political, environmental and ethnic groups; (vi) strikes; (vii) adverse changes in the political and regulatory environment in Chile; (viii) adverse weather conditions (ix) poor geological conditions; and (x) natural disasters, accidents or other unforeseen events. This presentation may not be reproduced in any manner whatsoever. Any reproduction of this document in whole or in part is unauthorized. Failure to  comply with this directive may result in a violation of the Securities Act or the applicable laws of other jurisdiction. The information contained should not be relied upon by any person. Furthermore, you should consult with own legal, regulatory, tax, business, investment,  financial and accounting advisers to the extent that you deem it necessary, and make your own investment, hedging and trading decision based upon your own judgment and advice from such advisers as you deem necessary and not upon any view expressed in this material. The Company is an issuer in Chile of securities registered with the Superintendencia de Valores y Seguros, the Chilean Superintendency of Securities and  Insurance, or “SVS.” Shares of our common stock are traded on the Bolsa de Comercio de Santiago — Bolsa de Valores, or the Santiago Stock Exchange, the Bolsa Electrónica de Chile — Bolsa de Valores, or Electronic Stock Exchange, and the Bolsa de Corredores — Bolsa de Valores, or the Valparaiso Stock Exchange, which we jointly refer to as the “Chilean Stock Exchanges,” under the symbol “AESGENER.” Accordingly, we are curren tly required to file quarterly and annual reports in Spanish and issue hechos esenciales o relevantes (notices of essential or material events) to the SVS, and provide copies of such reports and notices to the Chilean Stock Exchanges. All such reports are available at www.svs.cl and www.aesgener.com. 2

Agenda Third Quarter 2017 Earnings Call  Highlights  Financial Review  Key Takeaways  Q&A 3

HIGHLIGHTS 4

Highlights Third Quarter of 2017  Last-Twelve-Months EBITDA of $769 mn. YTD, $562 mn, -2% decrease over 2016  We continue to be the largest energy producer in Chile  Cochrane plant of 550 MW fully operational since October 2016  Nueva Renca continues contributing margin through profit sharing agreements  Successfully completed scheduled major maintenance in Unit 2 of Ventanas  Accrual of Green Taxes since January 2017, including those to be recovered 5

Highlights Third Quarter of 2017  2017 distribution companies auction in Chile held in October for 2,200 GWh/y  Argentina Regulatory Improvements in the Energy sector  Dividend distribution Year-to-Date of $205 mn, of $261 mn declared for 2017  On track with debt prepayment program to strengthen credit profile  Selected for Dow Jones Sustainability Index Chile for third year in a row  Alto Maipo: making progress in on-going negotiations 6

Highlights Third Quarter of 2017  The Company continues developing integrated energy solutions to capture the migration of customers from regulated segment to the unregulated regime, by securing PPAs with commercial & industrial customers  Executed PPAs for over 1,000 GWh per year, including Guacolda  Tenor of 4 years for customers with a consumption between 0.5 and 5 MW  Focused on maintaining a long term partnership with the customers 7

Highlights (cont’d) Largest Energy Producer in Chile  AES Gener maintains leading position as largest energy producer in Chile providing 30% of gross generation during the first nine months of 2017 SIC AES Gener 24% ~41.3 TWh SIC + SING AES Gener 30% ~55.3 SING TWh AES Gener 48% ~14.0 TWh 8

Highlights (cont’d) Alto Maipo Construction Update Project Layout  Overall project progress of 58% Alfalfal II. 264MW Unit 1 VL-8 Las Lajas. 267MW Unit 2 L1 VA-1  Total tunnel progress of ~ 44% Tunnel 2 VL-4  32.7 kms out of 73.7 kms 1 VA-2  Construction continues with more than 4,000 employees  Alto Maipo continues self-performing in Volcan and VA-4 Yeso areas and completed more than 1 kilometer of Project Location V5 Metropolitan Region tunneling works, showing significant improvements  On-going negotiations with financing parties and V1 potential contractors 9

Highlights (cont’d) Alto Maipo Restructuring Update Project Works  Potential solution should consider:  Lump-Sum, Fixed Price Contract  Guaranteed Completion Date  Strong incentives for early project completion  Most of potential equity contributions back-ended  Lenders to contribute to the solution  Making progress towards having in-principle agreement with lenders and potential contractor before year end  Focused on maintaining investment grade rating 10

FINANCIAL REVIEW 11

Consolidated Financials Third Quarter YTD Key Financials (US$ mn) 2017 2016 Var. (%) 2017 2016 Var. (%) Operating Revenues 615 623 -1% 1,771 1,722 3% Gross Profit 135 191 -29% 426 463 -8% -20% -2% EBITDA 182 227 562 571 EBITDA Margin 30% 36% 32% 33% Net Income 26 81 -68% 114 190 -40% EBITDA BY MARKET Third Quarter Year to Date 2017 182 2017 562 24% 40% 32% 32% 40% 25% 4% 3% 2016 37% 28% 32% 227 2016 45% 30% 22% 571 3% 3% SIC SING SIN SADI 12

EBITDA Bridge Third Quarter Year-to-Date EBITDA Decreased 20%, US$45 mn EBITDA Decreased 2%, US$9 mn 571 562 14 1 78 56 227 182 41 2 9 15 2016 SIC SING SADI SIN 2017 2016 SIC SING SADI SIN 2017 13

SIC Market YTD EBITDA Decreased by US$ 78 mn  Scheduled major maintenance activities resulting in higher spot purchases  Accrual of green taxes in 2017 for PPAs with Regulated Customers  Lower margin from Nueva Renca profit sharing agreements EBITDA Variation (YTD) Electricity Revenue Breakdown (YTD) -30% Spot Sales 256 2% 12 25 84 41 178 Regulated US$660 mn 43 Customers Unregulated 87 61% Customers 62 37% 85 73 2016 1Q Var 2Q Var 3Q Var 2017 3Q 2Q 1Q 14

SING Market YTD EBITDA Increased by US$ 56 mn  Full year of Cochrane and Andes Solar operations  Accrual of Green taxes in 2017 not yet passed-through to customers  Lower contract sales and higher coal prices in Norgener EBITDA Variation (YTD) Electricity Revenue Breakdown (YTD) +33% 225 Spot Sales 21% 9 30 73 169 17 64 US$576 mn 81 51 Unregulated 71 Customers 54 79% 2016 1Q Var 2Q Var 3Q Var 2017 3Q 2Q 1Q 15

SIN Market YTD EBITDA Increased by US$ 14 mn  Increase in contract sales as a result of higher volume and price  Decrease in energy purchases as a result of lower volume and price  Lower spot sales as a result of higher contracted volume and drop in spot prices EBITDA Variation (YTD) Electricity Revenue Breakdown (YTD) +11% Spot Sales 17% 1 142 15 28 128 58 US$240 mn 73 43 42 Contract Sales 41 83% 13 2016 1Q Var 2Q Var 3Q Var 2017 3Q 2Q 1Q 16