CORONAVIRUS (CODVID -19) SCENARIOS OF POTENTIAL IMPACTS April 20 - 2020
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 nor as an estimation that the scenarios or assumptions will occur. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information, assumptions or examples that may be 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 is meant only and example of a potential scenario that is based on assumptions that may or may not occur, and 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 but that are not . 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. Regarding the impact of COVID-19, the information used for preparing this presentation is solely based on what is publicly available as of March 31, 2020 and the company cannot make any representation with respect to the real impacts as they are unforeseeable. 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 or other countries from which our operations or projects obtain supplies; (viii) adverse weather conditions (ix) poor geological conditions; and (x) natural disasters, sanitary conditions, accidents or other unforeseen or catastrophic or exceptional 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 applicable laws in Chile or in other jurisdiction. The information contained herein 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, and the Bolsa Electrónica de Chile — Bolsa de Valores, or Electronic 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 2 copies of such reports and notices to the Chilean Stock Exchanges. All such reports are available at www.cmfchile.cl and www.aesgener.com.
CORONAVIRUS (COVID-19) EXECUTIVE SUMMARY MAIN HIGHLIGHTS Limited demand volatility exposure due to contract structure Demand Tolling and Take-or-Pay contracts mitigate impact from drop in demand in Chile and Colombia • In a scenario where AES Gener’s contracted power demand in Chile decreased 5% 2020 EBITDA could have a negative impact of up to $8 mn * • A drop in commodities prices (fuel prices) could partially offset impact of decreased demand • Most customers have investment grade ratings or equivalent • Highest risk clients are backed by Parent Company Guarantees and or Letters of Credit • Operations deemed critical infrastructure and have contingency plans guaranteeing business continuity Operations All plants currently fully operational - Well rehearsed contingency plans in place if required • As of this date no Fuel supply chain disruptions - Fuel Supply for +30 days with shipments in route • Potential for significant fixed cost and non-essential expenditures savings • Limited project supply chain disruption impact at our renewable projects • Strong Force Majeure provisions at Alto Maipo mitigate potential time and cost increases • Robust liquidity position with manageable short term obligations Liquidity +$341mn in cash on hand • $250mn committed Undrawn Revolver Facility • $165mn in debt maturities spread out evenly over the remainder of 2020 • 2020 maintenance CAPEX $90mn to $100mn • FX Devaluation Exposure offset by conservative hedging strategy Assuming our markets experienced a sustained 10% devaluation vs USD in 2020, the Cash Flow could have a positive impact of $0.9mn*: FX • Chile:+$4.1mn* / Colombia: -$3.1mn* / Termoandes -$0.1mn* 3 *Amounts prepared based on estimated figures by AES Gener based on a sustained 10% devaluation from April to December. Values and percentages are provided for reference purposes only and do not constitute an estimation, assumption or forecast by the Company.
CORONAVIRUS (COVID-19) OUR PEOPLE SAFETY IS ALWAYS FIRST of AES Gener personnel 54% 1,319 ON SITE Non operational personnel 100% WORKING REMOTELY AES GENER POEPLE High Risk presonnel (>60-years) 100% WORKING REMOTELY AES Gener personnel 5 0 COVID-19 cases COVID-19 cases Contractors 4
CORONAVIRUS (COVID-19) OUR PEOPLE KEY MEASURES TRANSPORT OF DIGITAL HEALTH PREVENTATIVE PERSONNEL IN TEMPERATURE EDUCATIONAL REMOTE WORK AND TRAVEL PRIVATE CONTROLS CAMPAIGNS QUESTIONNAIRE VEHICLES HIGH RESTRICTED PARAMEDICS ACCESS TO WORK SHIFT FREQUENCY ON SITE TO COORDINATED CONTROL MEAL TIMES CLEANING AND EVALUATE REDISTRIBUTION CENTER SYMPTOMS SANITATION 5
CORONAVIRUS (COVID-19) OUR OPERATIONS CONTINGENCY PLAN TO ENSURE BUSINESS CONTINUITY 66% 100% +30 days Of our personnel of OUR PLANTS of FUEL SUPPLY operations WORKING ON SITE OPERATING NORMALLY ASSURED 6
CORONAVIRUS (COVID-19) OUR PROJECTS ADVANCING WITH OUR STRATEGY ANDES SOLAR & & 15% LOS OLMOS Of our E&C personnel VIRTUAL RESERVOIR MESAMÁVIDA WORKING ON SITE Projects in final stages of Delays due to Supply Chain testing and commissioning disruption 98% COMPLETE 7
CORONAVIRUS (COVID-19) OUR MARKETS REVENUE 4% 20% 40% 20% REVENUE BY DEMAND CURRENCY MARKET RISK RISK 76% 60% 80% CHILE NO DEMAND RISK OTHER CURRENCIES POTENTIAL IMPACT US$ COLOMBIA ARGENTINA 8 *Amounts prepared based on 2019 figures. Demand risk Calculated at a Variable Margin level
CORONAVIRUS (COVID-19) CHILEAN ENERGY DEMAND MINING CONTRACTS ARE MAINLY SUPPORTED BY ToP AGREEMENTS Contracted Volume by customer type for 2020 65% 15% 20% No Demand risk (Tolling or ToP) Diversified Unregulated Customers Regulated Customers Unregulated Market Impact* Regulated Market Impact* If Disco demand decreases 5% If Free Client demand decreases 5% ($5mn) – 2020YTG ($3mn) – 2020YTG In EBITDA In EBITDA 9 *Amounts prepared based on estimated figures by AES Gener for 2020 under existing power supply agreements in force with regulated and free clients and a decrease in demand from April to December. Values and percentages are provided for reference purposes only and do not constitute an estimation, assumption or forecast by the Company.
CORONAVIRUS (COVID-19) IMPACT IN COLOMBIA COLOMBIA MOSTLY CONTRACTED WITH DISTRIBUTION COMPANIES Discos Portfolio of Customers by Industry Aceite y Grasas (2020) Actividades de Puertos Home Appliances Hand Tools More than 90% of 2020 Cement Products contracted energy Compensation Fund Printing volume are with DisCos, Real Estate Tires with Take or Pay PPAs Manufacturing Milling Paper Batteries and Storage Plastic Animal Processing Chemicals Textiles 10 Contract sales represent 80% to 85% of expected generation volume Values and percentages are provided for reference purposes only and do not constitute an estimation, assumption or forecast by the Company.
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