AES Gener S.A. September 2009 1
Agenda 1. Gener Overview 2. Market Presence 3. Expansion Plan 4. Summary 2
1. Gener Overview 3
Gener Overview � 2 nd largest electricity generator in Chile Proven electric � Important hydroelectric generator in Colombia generator � 3,850 MW of installed capacity � Diversified in terms of geography, technology and energy sources � Market presence and know-how, founded in 1981 Well positioned � Long-term relationships with clients, contractors and financial entities to capitalize on � Long-term power purchase agreements ensure sustainable growth industry growth � 1,207 MW in construction � Extensive experience in development, construction and operation Proven � Focused on operating excellence and safety business model with strong � Commercial strategy maximizes cash flows fundamentals � Strong financial indicators
Asset Portfolio Business Activities � Installed capacity: 3,850 MW � Chile: - 2,850 MW in operation - 1,207 MW in construction � Colombia: 1,000 MW � Transmission: 1,475 Km. � Fuel sales � Operating assets near major consumption centers 5
Business Structure AES GENER SIC (1,930 MW) SING (920 MW) COLOMBIA (1,000 MW) 100% 100% 90% 50% 100% 100% 100% OPERATING ENERGIA ELECTRICA GUACOLDA NORGENER CHIVOR TERMOANDES ASSETS VERDE SANTIAGO 29% hydro 49% biomass 79% CCGT coal coal CCGT hydro-dam 41% coal 51% diesel 21% diesel 30% diesel (946 MW) (49 MW) (479 MW) (456 MW) (277 MW) (1,000 MW) (643 MW) NUEVA CAMPICHE GUACOLDA ANGAMOS VENTANAS IV I & II coal coal coal coal (267 MW) (270 MW) (152 MW) (518 MW) Existing capacity: 3,850 MW Capacity under construction: 1,207 MW Future capacity: 5,057 MW 6 Note: Since September 2007, TermoAndes has been partially connected to the Argentine system (SADI).
Business Environment Provides Long Term Stability and Growth Potential Chile provides • Sound monetary policy with central bank reserves representing 17% of GDP stable environment • Developed capital markets with private pension investments of more than $22 (A+, Aa2) billion Pro-investment and transparent • Electricity law enacted in 1982, fundamentally unchanged regulatory • “Short Law II” (2005) incentivized generation investment framework in Chile Chilean electric • Generation companies have recorded solid financial results sector resilient • Continued growth based on current capacity shortage and long term expected with upside demand Colombia provides • Low per capita electricity consumption combined with steady industry growth favorable provides long term upside environment • Reliability charge methodology in 2006 assures stable cash flow for capital (BB+ / Ba1) recovery
Ownership Structure � AES Corp. owns 71% of Gener � AES has sold approximately 27% in secondary offerings since 2006 � AES participated in February 2009 capital increase maintaining 71% ownership Shareholders as of August 31, 2009 Others 13.1% Pension Funds (AFPs) 16.2% Inversiones Cachagua Ltda. 70.7%
AES Network Provides Access to Efficient & Economic Global Sourcing AES Global Footprint 132 generation plants with 38,000 MW gross installed capacity 1,274 MW wind generation in the United States 14 distribution companies with annual sales of 78,000 GWh 8 8 2 2 5 5 2 2 6 6 2 2 4 4 2 2 2 2 3 3 6 6 4 2 4 2 3 3 2 2 2 2 4 4 4 4 2 2 AES network provides Gener with economic 3 3 4 4 5 5 advantage through access to: � Dependable and reliable construction contractors 3 3 5 5 � Equipment & fuel suppliers 3 3 2 2 3 3 2 2 � Engineering firms, consultants and insurance services 2 2 In Operation In Operation In Operation 4 4 4 4 3 3 2 2 � International commercial bank markets, specifically Under Construction Under Construction Under Construction 2 2 2 2 Note: Numbers in circles Note: Numbers in circles Note: Numbers in circles project finance 9 9 indicate number of facilities indicate number of facilities indicate number of facilities � AES construction and financial expertise
Solid Financial Indicators EBITDA Total Debt 394 1,524 400 1,500 331 350 302 1,155 1,250 277 1,072 300 270 930 US$ Million US$ Million 1,000 250 853 809 196 200 750 150 500 100 250 50 - - 2005 2006 2007 2008 1H08 1H09 2005 2006 2007 2008 1H08 1H09 Total Debt / EBITDA Interest Coverage 7.0 6.2x 5.0 6.0 5.0x 4.0 3.4x 3.5x 5.0 4.5x 4.3x 4.0x 3.0x 2.9x 2.9x 4.0 3.0 3.4x 2.6x Times Times 3.0 2.0 2.0 1.0 1.0 - - 2005 2006 2007 2008 1H08 1H09 2005 2006 2007 2008 1H08 1H09 Notes: • EBITDA = Gross Profit + Administrative Expenses + Depreciation + Minor Adjustments 2008, 1H08, 1H09: Based on IFRS Financial Statements 2005-2007: Based on CHGAAP Financial Statements. 12 Month Average FX
2. Market Presence 11
Gener’s Diversified Portfolio Mitigates Risk � Generation assets diversified by market and energy source � Diversification reduces earnings and cash flow volatility Installed Capacity by Energy Source 2008 EBITDA by Market Installed Capacity by Market Biomass Diesel 1% SIC 11% 19% SIN 26% Hydro 33% SIN 40% Gas SIC 26% 50% SING SING 24% 42% Coal 29% SIC: Central Interconnected System SING: Greater Northern Interconnected System SIN: Colombian Interconnected System
Gener in the SIC � Installed capacity of 1,930 MW 1 represents 19% of the SIC � Generation portfolio is complementary to the system � Base-load and Back-up thermal plants � Run-of-river hydro plants in the Santiago metropolitan area � During 2008, the Gener Group generated 9,981 GWh, representing 24% of the SIC’s total generation Gener: Installed Capacity Biomass Hydro 1% 14% Coal 44% Gas/Diesel Diesel 20% 21% (1) Includes 100% of Eléctrica Santiago and Guacolda.
Gener in the SING � Installed capacity of 920 MW 1 represents 26% of the SING � TermoAndes has been connected to both the SING and Argentine system since September 2007 � Thermoelectric generation portfolio diversified between coal and gas/diesel � During 2008, the Gener Group generated 3,268 GWh, representing 23% of the SING’s total generation Gener: Installed Capacity Coal 30% Gas/Diesel 70% (1) TermoAndes has been partially connected to the Argentine system (SADI) since September 2007
Gener in Colombia � AES Chivor owns a 1,000 MW dam-based hydroelectric plant which represents 7% of Colombia’s total installed capacity � Chivor’s hydrology is countercyclical with he rest of the country � During 2008, Chivor generated 3,760 GWh, representing 7% of Colombia’s total generation
Commercial Strategy Reduces Earnings Volatility � Execution of long term contracts for a significant portion of firm energy from efficient generation plants (hydro, coal) � Reservation of less efficient plants for spot market sales � Early stage project identification and development, using market presence and know-how Colombia Chile Distcos w/o contracts Others 11% Regulated 8% 50% Spot 14% Spot Unregulated Contracts 49% 43% 25% Note: Based on 2008 physical sales
3. Expansion Plan 17
Growth Strategy Capitalizes on Market Opportunities � Projects needed to resolve energy crisis in Chile � Ambitious expansion plan under way � 3 units completed and currently operating (Los Vientos, Santa Lidia and Guacolda III*) � 6 units in construction � 4 units with environmental approval and 2 units in environmental approval process � New projects focus on strengthening reliable generation portfolio, utilizing experience and know-how in thermoelectric and hydroelectric generation � Project structure: � Environmental approvals � Turn-key, lump sum, fixed price EPC contracts � Long-term power purchase agreements including price indexation mechanisms with high quality offtakers � Structured financing arrangements *Note: Plants completed: Los Vientos: 125 MW (diesel) Santa Lidia : 125 MW (diesel) Guacolda III: 152 MW (coal)
Projects in Construction BESS NUEVA VENTANAS GUACOLDA IV ANGAMOS I CAMPICHE ANGAMOS II 12 MW / Battery 267 MW / coal 152 MW / coal 259 MW / coal 270 MW / coal 259 MW / coal Storage Temporarily October 2009 January 2010 June 2010 April 2011 October 2011 suspended* SING SIC SIC SING SIC SING * Note: The Campiche project has been temporarily suspended, based on Supreme Court decision which revoked the project’s environmental permit. Gener plans to resume construction after obtaining a new environmental permit.
Projects in Development LOS ROBLES ALTO MAIPO COCHRANE 750 MW / coal 530 MW / run-of-river 560 MW / coal (2 units) (2 units) (2 units) Environmental approval Environmental approval Environmental impact obtained in 2008 obtained in 2009 study obtained in 2009 SIC SIC SING
Staged Capacity Additions 7,000 6,000 4,787 5,000 4,269 3,850 4,000 3,559 MW 3,000 2,000 1,000 0 2008 2009 2010 2011 Current Capacity Santa Lidia Guacolda III Nueva Ventanas Guacolda IV Angamos I & II
Recommend
More recommend
