CORPORATE PRESENTATION AES GENER March 2017 AES Gener at a Glance - PowerPoint PPT Presentation

CORPORATE PRESENTATION AES GENER March 2017

AES Gener at a Glance Leading power generation company controlled by AES Corporation AES GENER IS ENERGIZED BY A REGIONAL WORKFORCE OF $778 M $3.2 B +1,500 PEOPLE EBITDA MARKET CAP IMPROVING LIVES IN 2016 AS OF MARCH 2, 2017 RECOGNIZED AS A GREAT PLACE CHILE, $7.8 B $3.8 B TO WORK in COLOMBIA AND CHILE (ranked 16th), TOTAL ASSETS CONS. DEBT COLOMBIA (ranked 16th) and OWNED & MANAGED 2016 ARGENTINA (ranked 15th) ARGENTINA RATED FOUNDED IN 1981 Baa3 / BBB- / BBB- BY And Acquired by MOODY’S , 5,795 The AES Corporation in 2000, Who GROSS MW S&P GLOBAL Currently owns 66.7% in operation FITCH RATINGS 4,132 Named to TECHNOLOGIES MARKET SHARE DOW JONES 1,020 COAL , 3,011 MW CHILE 31% by generation SUSTAINABILITY HYDRO , 1,291 MW COLOMBIA 6% by inst. cap 643 GAS/DIESEL , 1,459 MW ARGENTINA 3% by inst. cap INDEX for Chile OTHERS , 34 MW 531 GROSS MW in construction LISTED IN COMMERCIAL BUSINESS LARGELY (Alto Maipo SANTIAGO STOCK Project in Chile) CONTRACTED EXCHANGE EFFICIENT GENERATION CONTRACTED WITH AN AVERAGE LIFE OF 11 YEARS 2

2016 HIGHLIGHTS Contains Forward-Looking Statements 3

2016 Highlights AES Gener Consolidates its Leadership as an Energy Solution Provider  AES Gener achieved the highest EBITDA ever, $778m in 2016 US$ mn. $778 $691 $671 $661 $623 2012 2013 2014 2015 2016 DIVERSIFICATION INNOVATION RELIABILITY FLEXIBILITY AGILITY EXCELLENCE 4

2016 Highlights (cont’d) Largest Energy Producer in Chile  AES Gener continues to be the largest energy producer in Chile contributing 31% of the total gross generation of the country in 2016 SIC AES Gener 28% ~53 TWh SIC + SING AES Gener 31% ~72 SING TWh AES Gener 41% ~19 TWh 5

2016 Highlights (cont’d) Successful Commissioning of 573 MW and Environmental Equipment MAY 28 TH JUNE OCTOBER 12 TH ENVIRONMENTAL 21MW 266MW(*) EQUIPMENT ANDES SOLAR COCHRANE UNIT 2 2016 JUNE 30 TH FEBRUARY JULY 9 TH OCTOBER 13 TH ENERGY EXPORT 20MW 266MW(*) 20MW INTERANDES TUNJITA COCHRANE UNIT 1 COCHRANE BESS (*): In January 2017, the Chilean ISO approved an increase in Cochrane’s gross installed capacity to 550 MW 6

2016 Highlights (cont’d) Recovery Signs in Argentina  Argentina’s economic upturn coupled with key economic reforms and TERMOANDES (643 MW) regulatory improvements in the power sector  Release of currency controls  Reduction of Government subsidies  Plans to increase installed capacity by 22.5 GW by 2025  Normalization of CAMMESA payments  Tariff dollarization (Resolution 19/2017 of Feb 2nd, 2017) 7

2016 Highlights (cont’d) Advancing Forward with Restructuring Agreement for Alto Maipo  Reached an agreement to secure funding for the cost overruns for up to 22% including meaningful contingencies, subject to negotiation of definitive documents and Lenders Credit Committee Approvals  Main Terms of the Agreement:  AES Gener’s acquisition of the 40% stake from Minera Los Pelambres  Incorporation of Strabag, the main contractor, as a minority shareholder at book value, with an initial stake of approximately 7%  Amendment of the 20 year PPA with Minera Los Pelambres. All termination options were removed  Changes to the terms and conditions of the current financing arrangements of the project 8

COMPANY OVERVIEW Contains Forward-Looking Statements 9

Markets Overview CHILE ($581m EBITDA) COLOMBIA ($172m EBITDA) 4,132 MW of installed capacity (SIC+SING) ENERGY SALES GENERATION ENERGY SALES NET GENERATION 1% 10% SING SIN 4,373 6,987 50% 50% $427m $641m GWh GWh 100% 90% 99% Contract Sales Spot Hydro Unregulated Customers Spot Sales Thermal Solar SING ASSETS, 1,389 MW SIN ASSETS, 1,020 MW , CHIVOR, 1,000 MW, hydro NORGENER, 277 MW, coal TUNJITA, 20 MW, hydro ANGAMOS, 558 MW, coal COCHRANE, 532 MW, coal ANDES SOLAR, 21MW ARGENTINA ($25m EBITDA) ENERGY SALES GENERATION ENERGY SALES GENERATION 17% 1% 13% 30% SIC 8,208 SADI $849m GWh 4,637 47% $112m 53% GWh 57% 82% 100 Thermal Hydro Other Unregulated Regulated Spot Sales % SIC ASSETS, 2,743 MW , Contract Spot Sales Thermal VENTANAS, 884 MW, coal SADI ASSETS, 643 MW , GUACOLDA, 760 MW, coal TERMOANDES, 643 MW, gas ELECTRICA SANTIAGO, 750 MW, gas & diesel HYDROS, 271 MW OTHERS, 78 MW, diesel 10

Portfolio Overview We operate a 5,795 MW diversified portfolio in terms of markets and technologies Countries Markets Technology Fuel 11% 11% 18% 18% 5,795 5,795 47% 2% 1% MW MW 71% 24% 23% 23% Chile Colombia Argentina SIC SING SIN SADI 5,795 5,795 52% MW MW EBITDA 22% 77% 3% 3% 22% 22% Coal Hydro 44% $778M $778M Gas/Diesel Diesel 75% Thermal Renewable Other 31% Chile Colombia Argentina SIC SING SIN SADI 11

Commercial Strategy for Chile Long term contracts with creditworthy and reliable offtakers Overview Customers  Industrial Commercial strategy aims to 8% maximize cash flow while minimizing volatility Mining 25,000 Contract 62% avg. life: 11 years Discos  Optimal contracted position seeks 30% 20,000 to match contracted energy with GWh per Year long term efficient generation 15,000 10,000  Contract customers include distribution companies (regulated) 5,000 and unregulated customers (mining and industrial) 0  2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Contracts include Price indexation mechanisms (coal and US CPI) and Regulated Non-Regulated Guacolda passthrough provisions (regulatory risks)  11 years average life of outstanding contracts 12

Commercial Strategy for Colombia and Argentina Colombia Argentina ENERGY SALES ENERGY SALES 47% 50% 50% 53% Contract Spot Contract Spot Medium Term ~80% of Expected Energia Plus Contracts Contract Energy Generation Contracts (1-4 Years) Spot and Frequency Remaining Generation Remaining Generation Spot Sales to ISO Regulation Sales Firm Energy Reliability Charge (~3,000 GWh) Revenue 13

Successful Project Development and Construction Phase I 2007-2013: 1,677 MW of new capacity  Extensive experience in project development 1 Angamos I & II BESS Angamos I 2 BESS Norgener 2 and execution on time and within budget 1 2 Antofagasta  49% increase of installed capacity between 2007 and 2014  558 MW (2 units)  12 MW  20 MW  Coal  Energy Storage  Energy Storage 4  Start Date: Apr./Oct.  Start Date: Nov.  Start Date: Dec.  Total investment of $3 B 2011 2009 2011 3 Los Vientos 4 Guacolda III 4 Guacolda IV 7 6 3 Santiago +49% 5 5,094  132 MW  152 MW  152 MW  Diesel  Coal  Coal  Start Date: Jan. 2007 3,417  Start Date: Jul. 2009  Start Date: Mar. 2010 Santa Lidia 5 6 Ventanas III 7 Ventanas IV 2007 2014  139 MW  272 MW  272 MW  Diesel  Coal  Coal  Start Date: Apr. 2009  Start Date: Feb. 2010  Start Date: Mar. 2013 14

Successful Project Development and Construction Phase II 2015-2019: 1,256 MW of new capacity Construction Progress  $4 B investment, fully funded Guacolda V - COMPLETED Tunjita - COMPLETED  152 MW  20 MW  Coal  Hydro +21%  Start Date: Dec.  Start Date: Jun 2016 2015 6.326 Angamos Desal - COMPLETED Cochrane - COMPLETED  Desalination plant  532 MW (2 units) 531  Coal 5.795  Start Date: Oct 2016 573 5.222 5.795 Andes Solar - COMPLETED Alto Maipo 152 5.222  21 MW  531 MW  Solar  Run of River Hydro 5.070  Start Date: May  Progress: 49% 2016 2015 2016 2019 Guacolda V – 152 MW Tunjita – 20 MW Alto Maipo – 531 MW Andes Solar – 21 MW Angamos Desalinization Cochrane – 532 MW 15

Strong Financial Performance EBITDA and EBITDA Margin Total Debt and Net Debt/EBITDA 32% 34% 29% 28% 4.3x 4.5x 778 3.7x 691 3,824 3.3x 672 624 3,375 172 2,785 2,734 246 1,626 263 209 1,706 1,214 1,487 581 426 2,198 377 355 1,669 1,520 1,298 2013 2014 2015 2016 2013 2014 2015 2016 Chile Colombia Argentina Ebitda Margin PF / Non Recourse Debt Corporate Debt Net Debt / Ebitda Total Capex Capital Allocation 772 1,002 109 830 527 430 127 439 562 92 532 319 66 83 866 235 82 656 210 102 230 473 93 336 201 162 124 112 2013 2014 2015 2016 2013 2014 2015 2016 Equity Contribution Dividends Debt Paydown Construction Maintenance Environmental 16

Strong Capital Structure Manageable Amortization Profile for US$ 3.8 M Debt  Average Cost: 5.7%  Average Life: 13 years  Net Debt/EBITDA: 4.3x (2.1x excluding non recourse debt) 43% $3,824m  98% denominated in USD 57%  91% at fixed interest rate Recourse Debt Non Recourse Debt AMORTIZATION SCHEDULE (US$ M) 1,429 589 575 198 209 188 181 166 143 147 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026/2073 Recourse Debt Non Recourse Debt 17