1Q-2020 EARNINGS CALL MAY 7, 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 copies of such reports 2 and notices to the Chilean Stock Exchanges. All such reports are available at www.cmfchile.cl and www.aesgener.com.
AES GENER 1Q-2020 EARNINGS CALL AGENDA May 7, 2020 COVID-19 UPDATE STRATEGY EXECUTION UPDATE FINANCIAL REVIEW 1Q-2020 GROWTH PROJECTS STATUS UPDATE KEY TAKEAWAYS Q&A 3 3
COVID-19 UPDATE
COVID-19 UPDATE AES GENER GUIDING PRINCIPLES SAFETY RELIABLE WORK ALL TOGETHER OF OUR PEOPLE ENERGY SUPPLY CARBON INTENSITY 5 REDUCTION
COVID-19 UPDATE OUR PEOPLE SAFETY IS ALWAYS FIRST 53% of AES Gener personnel ON SITE 100% Non-Operational personnel 1,319 WORKING REMOTELY 100% High Risk personnel (>60-years) AES GENER PEOPLE WORKING REMOTELY AES Gener personnel 12 1 COVID-19 case COVID-19 cases Contractors 6
COVID-19 UPDATE OUR OPERATIONS CONTINUE PROVIDING RELIABLE ENERGY 100% +30 days 66% of Our Plants of Fuel Supply Of our Operations Personnel OPERATING NORMALLY ASSURED WORKING ON SITE 7
COVID-19 UPDATE OUR PROJECTS LIMITED IMPACTS ALTO MAIPO SOLAR WIND 4,518 WORKERS ON SITE PROJECT PROJECTS Contingency Plan ready in case Andes Solar II nearly complete Progress at Los Olmos and of full lockdown with limited impact Mesamávida moderately impacted 8
COVID-19 UPDATE OUR LIQUIDITY STRONG TO OVERCOME DISRUPTIONS $378 mn $250 mn $628 CASH & UNDRAWN COMMITTED CASH EQUIVALENT FACILITIES 60% million 40% 9 As of March 31, 2020
COVID-19 UPDATE OUR MARKETS COUNTRY AND COUNTERPARTY RISK REVENUE 76 % 20 % 4% BY MARKET 96% INVESTMENT GRADE BBB-/Baa2 S/Ca A+/A1 Markets EBITDA IMPACT INVESTMENT GRADE PROFILE Customers Regulatory Changes -$ 1.5 mn /year Chile 42% 89% Vulnerable Household Relief¹ COLOMBIA CHILE Argentina -$ 0.5 mn /month Local CPI Indexation 10 (1) Based on latest version of bill
COVID-19 UPDATE OUR CONTRACTS DEMAND RISK REVENUE 89% CONTRACTED BY SOURCE HIGHLY CONTRACTED Business with Robust Take or Pay PPAs Contract Sales EBITDA SENSITIVITY LIMITED April Demand Contract exposed to Volume Risk 10% Demand Decline per month Δ YoY ² Level Volume risk¹ Chile 100 % 24% Chile -$ 1.5 mn -0.24 % Colombia 80 % 2% Colombia -$ 2.5 mn -10.5 % Argentina 60 % 3% -$ 0.3 mn -10.9 % Argentina 11 (1) 2019 Contract sales volume exposed to demand risk / total sales volume (2) Preliminary April 2020 systemwide figures
COVID-19 UPDATE OUR CURRENCIES FX RISK REVENUE 79% DOLLAR DENOMINATED BY CURRENCY FULLY DOLLARIZED ACTIVE HEDGE STRATEGY Revenues in Chile in Colombia CASH FLOW SENSITIVITY FIXED Costs 10% Devaluation per month Chile +$ 0.5 mn LOCAL CURRENCIES HELP TO Colombia -$ 0.3 mn OFFSET DEVALUATION -$ 0.01 mn Argentina 12
COVID-19 UPDATE OUR DISCRETIONARY COSTS HELPING MITIGATE POTENTIAL COVID-19 IMPACTS $11-14mn NON-ESSENTIAL COST MANAGEMENT 13
COVID-19 UPDATE OUR TRANSFORMATION ACCELERATED DUE TO CORONAVIRUS Flexible & Remote Virtual Collaborative Accelerated Digital Work Networks Transformation 14
STRATEGY EXECUTION UPDATE
STRATEGY EXECUTION UPDATE GREENTEGRA ULTIMATE OBJECTIVES Transform AES Gener into a LEADING RENEWABLE BUSINESS in South America STRENGTHEN GREEN REDUCE INVESTMENT G RADE OUR CUSTOMERS CARBON INTENSITY 16
STRATEGY EXECUTION UPDATE RENEWABLE TRANSFORMATION ENABLED BY OUR BUSINESS SOLUTIONS PROTECT ENABLE ALLOW FOR EARLIER EXISTING VALUE GREEN GROWTH COAL PHASE OUT New long-term renewable PPAs to Coal plants merchant providing Delink existing PPAs from coal support green capacity expansion physical assets reliability to the system 17
STRATEGY EXECUTION UPDATE RENEWABLE TRANSFORMATION TOWARDS A SUSTAINABLE LEADING COMPANY GREEN RENEWABLE INCREMENTAL CONTRACTS CAPACITY¹ EBITDA¹ 26% 21% 10% 8.9 0.4 2.1 TWh/y bn GW 74% 25% 54% 90% CHILE CHILE WIND COLOMBIA COLOMBIA SOLAR HYDRO 18 Capacity to be added by 2024 and Incremental EBITDA generated in 2024
STRATEGY EXECUTION UPDATE GREENING OUR CUSTOMERS SUSTAINABLE EBITDA 66% 33% Greentegra Offsets Legacy 0.8 bn 1.0 bn Contract Roll-off 2017 2024 RENEWABLE LT AUCTION RENEWABLES NON RENEWABLES 19
STRATEGY EXECUTION UPDATE REDUCING CARBON INTENSITY SUSTAINABLE PORTFOLIO 51% 24% +152% Renewable 5.8 GW 6.9 GW Capacity -27% 2017 2024 CO 2 Intensity RENEWABLES NON RENEWABLES 20
STRATEGY EXECUTION UPDATE STRENGTHEN INVESTMENT GRADE SUSTAINABLE LEVERAGE Net Debt / EBITDA 64% 69% 36% 31% Renewable 4.1 X 3.4 X EBITDA Debt 2017 2024 Amortization NON-RECOURSE DEBT RECOURSE DEBT 21
STRATEGY EXECUTION UPDATE RENEWABLE TRANSFORMATION SUPPORTED BY OUR SHAREHOLDERS 500 mn 66.7 % 16.2 % CAPITAL INCREASE APPROVED 17.1 % 22
STRATEGY EXECUTION UPDATE VIRTUAL RESERVOIR STORING ENERGY INTEGRATED WITH 10 MW x 5 hr ALFALFAL I RUN-OF- RIVER HYDRO BATTERY SYSTEM FIRST PROJECT IN THE WORLD 23
STRATEGY EXECUTION UPDATE ANDES SOLAR II COMBINING BEST LOCATION AND TECHNOLOGY 37 % 36 MW NET CAPACITY IN OPERATION FACTOR THE WORLD’S MOST EFFICIENT 24
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