AES Gener Corporate Presentation 1Q-2018
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 Comisión para el Mercado Financiero, the Chilean Superintendency of Securities and Insurance, or • “CMF . ” 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 currently required to file quarterly and annual reports in Spanish and issue hechos esenciales o relevantes (notices of essential or material events) to the CMF, and provide copies of such reports and notices to the Chilean Stock Exchanges. All such reports are available at www.cmfchile.cl and www.aesgener.com. All figures are expressed in US$ and rounded to the nearest million, unless indicated otherwise. •
AES Gener at a Glance Leading power generation company controlled by AES Corporation AES Gener Is Energized By A IMPROVING LIVES IN Regional Workforce Of $2.3B $812M Chile, MARKET CAP EBITDA +1,500 PEOPLE AS OF May 17, 2018 LTM 1Q-2018 Colombia AND RECOGNIZED AS A Great Place Argentina To Work in $8.3B $3.7B TOTAL ASSETS CONS. DEBT OWNED & MANAGED 1Q-2018 CHILE COLOMBIA ARGENTINA RATED Founded In 1981 Baa3 / BBB- / BBB- BY 5,063 GROSS MW And Acquired by MOODY’S S&P GLOBAL FITCH RATINGS in operation The AES Corporation in 2000, Technologies Market Share 3,400 Who Currently owns 66.7% Named to 1,020 Coal 3,029 MW Chile 27% by generation Dow Jones Colombia 5% by generation Hydro 1,291 MW 643 Argentina 3% by generation Gas/Diesel 709 MW Sustainability Others 34 MW 531 Index for Chile GROSS MW Commercial Business Largely under LISTED ON Contracted construction Santiago Stock (Alto Maipo EFFICIENT GENERATION CONTRACTED Exchange Project in Chile) WITH AN AVERAGE LIFE OF 10 YEARS Market share based on 1Q-2018 Generation figures
Index 1. Highlights 2. Company Overview 3. Growth Projects 4. Financial Review 5. Appendix - Distribution Companies PPA Auctions 6. Appendix - About The AES Corporation
1 Highlights 2018 First Quarter
Highlights 1 2018 First Quarter Record 1Q-2018 Annual Shareholders Energia Base tariff step 70% Net Income EBITDA $208 mn, growth boosted by meeting on April 26th up in Argentina 10% increase improvement across all Approved dividends markets reaching ~$185 mn for 2018 $79 mn LTM EBITDA $812 mn 6
Highlights ( cont’d ) 1 2018 First Quarter Commitment not to Closing EPC contract Continue securing Submitted request for build new coal-fired PPAs with C&I for Chivor life environmental power plants and customers extension Project approvals to develop develop renewables to desalination plants reduce carbon Colombian regulator Secured green tax adjacent to our intensity of our pass-through with drafting framework for Ventanas and portfolio important customers long term PPAs for Guacolda Plants renewables 7
Highlights ( cont’d ) 1 Largest Energy Producer In Chile AES Gener Chile Chile maintains leading SEN SEN AES Gener 27% 27% position as largest energy producer in Chile providing ~19 ~19 TWh TW 27% of gross generation during 1Q – 2018 8
Highlights (cont’d) 1 We continue advancing with non- core assets sale process to strengthen the company’s capital structure Transmission Assets Electrica Santiago (ESSA) Assets AES Gener owns ~1,500 kms of transmission lines, including Accepted an offer to sell 750MW for $300mn to Generadora the Interandes international line Metropolitana Spa (JV between EDF and AME) Attractive valuation on assets that are not essential to the Launched a process to sell regulated transmission assets execution of our long term strategy owned by AES Gener, not essential to the execution of the long term strategy Proceeds will be used to prepay debt, strengthen liquidity Shortlisting binding offers, expected to close during 2H- and growth 2018 Conditions precedent were met. Closing expected in May 2018 316 kms of transmission line assets to be sold 750MW in gas/diesel fired assets 132 kms 154 kms 30 kms in under under Zonal Dedicated National System System Nueva Renca Renca Los Vientos Santa Lidia Trunk System 379MW 100MW 132MW 139MW 9
Highlights (cont’d) 1 Alto Maipo Project Works - Las Lajas Cavern Construction Update Construction continues moving forward More than 4,700 workers 12 active work fronts Overall project progress of 64% T otal tunnel progress of 52% 39.4 km of 75.9 km Completion of Las Lajas Cavern and Headrace tunnel Note: Construction progress as of May 2 nd , 2018 10
Highlights ( cont’d ) 1 Alto Maipo Summary of May 2018 Restructuring PR PROJE OJECT CT AES GENER AES GEN ER CHANGE CHANGE IN IN CAPIT CA PITALIZA ALIZATION TION COMM CO MMITMEN ITMENTS TS RISK PR RISK PROFILE OFILE Lump sum fixed price contract with Fully funded plan, considering: AES Gener will contribute: Strabag, including guaranteed completion dates backed by: • $3,048mn construction cost • $200mn based on progress and debt • Additional $392mn payable over 20- disbursements • $300mn Letters of Credit year after COD • Up to $200mn towards completion • Corporate Guarantee from Strabag SE and for project costs or to prepay debt Lenders commitment for US$823 mn, Transfer of Geological and construction including incremental funding of risks No additional debt to be issued at AES $135mn Gener level Strong incentives for early completion Incremental shares to Strabag if certain milestones are met COD Las Lajas & Alfalfal II expected in 2020 11
Highlights ( cont’d ) 1 Alto Maipo Project Capitalization as of Today Financial Debt Equity +510 +135 1,535 1,451 170 1,316 135 346 1,025 60 688 688 346 1,019 619 628 628 Debt Commitments Debt Equity Equity March 2017 Commitments Contributed as of Commitments, May April, 2018 2018 Budget Restructuring May 2018 Budget Disbursed Undrawn Commitment Incremental Commitment AES Gener MLP Strabag 12
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