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

CORPORATE PRESENTATION AES GENER September 2017

AES Gener at a Glance Leading power generation company controlled by AES Corporation AES GENER IS ENERGIZED BY A $813 M $2.8 B REGIONAL WORKFORCE OF +1,500 PEOPLE EBITDA MARKET CAP IMPROVING LIVES IN 2017-2Q LTM AS OF AUG 8, 2017 RECOGNIZED AS A CHILE, GREAT PLACE $8.0 B $4.0 B TO WORK in COLOMBIA AND CHILE (ranked 16th), TOTAL ASSETS CONS. DEBT COLOMBIA (ranked 16th) and OWNED & MANAGED 2017-2Q ARGENTINA (ranked 15th) ARGENTINA RATED FOUNDED IN 1981 Baa3 / BBB- / BBB- BY And Acquired by 5,813 MOODY’S , The AES Corporation in 2000, GROSS MW S&P GLOBAL Who Currently owns 66.7% in operation FITCH RATINGS 4,150 Named to TECHNOLOGIES MARKET SHARE DOW JONES 1,020 COAL , 3,029 MW CHILE 30% by generation SUSTAINABILITY HYDRO , 1,291 MW COLOMBIA 5% by generation 643 GAS/DIESEL , 1,459 MW ARGENTINA 3% by generation INDEX for Chile OTHERS , 34 MW 531 GROSS MW in construction LISTED N COMMERCIAL BUSINESS LARGELY (Alto Maipo SANTIAGO STOCK Project in Chile) CONTRACTED EXCHANGE EFFICIENT GENERATION CONTRACTED WITH AN AVERAGE LIFE OF 11 YEARS 2

2017 2Q HIGHLIGHTS Contains Forward-Looking Statements 3

Highlights Second Quarter of 2017  Highest LTM EBITDA of all time: $813mn  Year-to-Date EBITDA of $380mn, +10% increase over 2016  Second quarter EBITDA of $191mn, +2% higher than 2016  Continued enhancing Investment Grade Credit Profile by repaying Corporate Debt  $132mn prepaid since December 2016  In April, the Company declared dividends of $261mn payable in 2017, equal to 100% of Net Income in 2016.  $146mn distributed in May 2017 4

Highlights Second Quarter of 2017  Advanced second phase of expansion, all projects other than Alto Maipo fully operational  Cochrane Project fully operational and contracted since October 2016  New 743 MW generating earnings and cash flows  We continue developing solar PV based distributed energy solutions  4 contracts signed with new industrial customers  Nueva Renca continues contributing margin through the tolling agreements. Secured renewal for 2018 5

Highlights (cont’d) Largest Energy Producer in Chile  AES Gener continues to be the largest energy producer in Chile contributing 30% of gross generation during the first half of 2017 SIC AES Gener 24% ~27.5 TWh SIC + SING AES Gener 30% ~36.5 SING TWh AES Gener 48% ~9.0 TWh 6

Highlights (cont’d) AES Gener Contracted Portfolio Industrial  Efficient generation fully contracted with no relevant maturities until 9% 2021/2022 Looking forward to present competitive bids in the upcoming regulated auction (October 2017)   Guacolda re-contracted ~1,200 GWh with industrial customers Avg. Contract life: PPAs with tenors ranging between 3 and 7 years  11 years Mining Discos 64% 27% 25,000 20,000 GWH per Year 15,000 10,000 5,000 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Regulated Non-Regulated Guacolda 7

COMPANY OVERVIEW Contains Forward-Looking Statements 8

Markets Overview (2017-2Q LTM Figures) CHILE ($590m EBITDA) COLOMBIA ($200m EBITDA) 4,150 MW of installed capacity (SIC+SING) ENERGY SALES GENERATION ENERGY SALES GENERATION 1% 17% SING 33% SIN 4,439 7,643 $363mn $727mn GWh GWh 67% 83% 100% 99% Contract Sales Spot Hydro Unregulated Customers Spot Sales Thermal Solar SIN ASSETS, 1,020 MW , SING ASSETS, 1,406 MW CHIVOR, 1,000 MW, hydro NORGENER, 277 MW, coal TUNJITA, 20 MW, hydro ANGAMOS, 558 MW, coal COCHRANE, 550 MW, coal ANDES SOLAR, 21MW ARGENTINA ($24m EBITDA) ENERGY SALES GENERATION ENERGY SALES GENERATION 0% 6% 19% 34% SIC 46% 7,425 SADI $861mn GWh 4,637 $122mn 60% GWh 81% 54% 100% Unregulated Regulated Spot Sales Thermal Hydro Other SIC ASSETS, 2,744 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 9

Portfolio Overview (2017-2Q LTM Figures) We operate a 5,813 MW diversified portfolio in terms of market and technology Countries Markets Technology Fuel 11% 11% 18% 18% 5,813 5,813 47% MW MW 2% 1% 71% 24% 23% 23% Chile Colombia Argentina SIC SING SIN SADI 5,813 5,813 52% MW MW EBITDA 22% 77% 3% 3% 25% 25% Coal Hydro 37% $813mn $813mn Gas/Diesel Diesel 72% Thermal Renewable Other 35% Chile Colombia Argentina SIC SING SIN SADI 10

Commercial Strategy for Chile Long term contracts with creditworthy and reliable offtakers Overview Customers Industrial Commercial strategy aims to  9% maximize cash flow while minimizing volatility 25,000 Contract avg. life: 11 years Mining Discos 20,000 Optimal contracted position seeks 64% 27%  GWH per Year to match contracted energy with 15,000 long term efficient generation 10,000 Contract customers include  5,000 regulated customers (distribution companies) and unregulated 0 customers (mining and industrial) 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Contracts include Price indexation  Regulated Non-Regulated Guacolda mechanisms (coal and US CPI) and passthrough provisions (regulatory risks) ~11 years average life of outstanding  contracts 11

Commercial Strategy for Colombia and Argentina Colombia Argentina ENERGY SALES (YTD) ENERGY SALES (YTD) 19% 41% 59% 81% Contract Spot Contract Spot Medium Term ~80% of Expected Energia Plus Contracts Contract Energy Generation Contracts (1-4 Years) Remaining Spot and Frequency Remaining Spot Sales to ISO Generation Regulation Sales Generation Firm Energy Reliability Charge (~3,000 GWh) Revenue 12

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 BESS Norgener 2 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 $3bn 2011 2009 2011 3 Los Vientos 4 Guacolda III Guacolda IV 4 7 6 3 Santiago +49% 5 5,094  132 MW  152 MW  152 MW  Diesel  Coal  Coal 3,417  Start Date: Jan. 2007  Start Date: Jul. 2009  Start Date: Mar. 2010 5 Santa Lidia Ventanas III 6 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 13

Successful Project Development and Construction Phase II 2015-2019: 1,256 MW of new capacity Construction Progress  $4bn 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  550 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: 52% 2016 2015 2016 2019 Guacolda V – 152 MW Tunjita – 20 MW Alto Maipo – 531 MW Angamos Desalinization Andes Solar – 21 MW Cochrane – 532 MW 14

Strong Financial Performance IFRS 2017-2Q LTM Figures in US$ mn EBITDA & EBITDA margin Total debt and net debt / EBITDA 34% 35% 32% 4.5x 4.4x 29% 4.3x 813 778 3.7x 22 3,966 691 3,824 672 25 3,375 201 19 172 32 2,734 1,560 246 1,626 263 1,706 1,214 590 581 2,405 426 2,198 377 1,669 1,520 2014 2015 2016 2Q-2017 LTM 2014 2015 2016 2Q-2017 LTM Chile Colombia Argentina EBITDA Margin PF/Non-Recourse Corporate Debt Net Debt/EBITDA Total CAPEX Capital Allocation 606 1,002 92 109 830 438 418 127 66 235 617 113 562 248 158 83 210 893 188 102 703 479 279 459 93 162 117 53 2014 2015 2016 2Q-2017 LTM 2014 2015 2016 2Q-2017 LTM Construction Maintenance Equity Contribution Dividends Paid Debt Payment 15

Strong Capital Structure Manageable Amortization Profile for $3,966mn as of June 30, 2017 • Average Cost: 5.5% • Average Life: 14 years • Net Debt/EBITDA: 4.4x (2.4x excluding non recourse debt) 39% $3.97bn • 98% denominated in USD 61% • 93% at fixed interest rate Non Recourse Debt Recourse Debt AMORTIZATION SCHEDULE (US$mn) 1,786 571 558 174 187 161 173 157 153 47 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026/2073 Non Recourse Debt Recourse Debt Note: Amortization Schedule does not include potential acceleration of Alto Maipo’s debt 16

Key Investment Considerations Largest energy producer in Chile, and major producer in Colombia, with  LEADING POSITION one of the most efficient plants in Argentina One of the most diversified Latin American generator in terms of  DIVERSIFICATION geographical footprint and technology Outgrown peers in addition of new capacity and secured future growth  HIGH GROWTH through fully-financed pipeline STABLE CASH Largely contracted US dollar-denominated revenue streams with built in  FLOWS fuel and inflation passthrough provisions STRONG CAPITAL A successful financing history committed to investment grade rating  STRUCTURE 17

APPENDIX Contains Forward-Looking Statements 18