Post on 30-May-2020
CORPORATE PRESENTATIONAES GENER
March 2017
2
Leading power generation company controlled by AES Corporation
AES Gener at a Glance
IMPROVING LIVES IN
CHILE,COLOMBIA AND
ARGENTINA
5,795 GROSS MWin operation
4,1321,020
643
531 GROSS MWin construction(Alto Maipo Project in Chile)
TECHNOLOGIESCOAL, 3,011 MWHYDRO, 1,291 MWGAS/DIESEL, 1,459 MWOTHERS, 34 MW
FOUNDED IN 1981And Acquired byThe AES Corporation in 2000, WhoCurrently owns 66.7%
Named to
DOW JONESSUSTAINABILITYINDEX for Chile
AES GENER IS ENERGIZED BY AREGIONAL WORKFORCE OF
+1,500 PEOPLE
RECOGNIZED AS A
GREAT PLACETO WORK in
CHILE (ranked 16th),COLOMBIA (ranked 16th) andARGENTINA (ranked 15th)
$7.8 BTOTAL ASSETSOWNED & MANAGED
$778 M EBITDA2016
$3.8 BCONS. DEBT2016
$3.2 BMARKET CAPAS OF MARCH 2, 2017
RATED
Baa3 / BBB- / BBB- BY
MOODY’S,S&P GLOBALFITCH RATINGS
MARKET SHARECHILE 31% by generationCOLOMBIA 6% by inst. capARGENTINA 3% by inst. cap
COMMERCIAL BUSINESS LARGELY CONTRACTEDEFFICIENT GENERATION CONTRACTEDWITH AN AVERAGE LIFE OF 11 YEARS
LISTED IN
SANTIAGO STOCKEXCHANGE
3Contains Forward-Looking Statements
2016 HIGHLIGHTS
4
2016 Highlights
AES Gener Consolidates its Leadership as an Energy Solution Provider
AES Gener achieved the highest EBITDA ever, $778m in 2016
$661
$623
$671
$691
$778
2012 2013 2014 2015 2016
US$ mn.
DIVERSIFICATION
FLEXIBILITY
INNOVATION
AGILITY
RELIABILITY
EXCELLENCE
5
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
AES Gener28%
AES Gener41%
SIC
SING
~53 TWh
~19 TWh
AES Gener31%
SIC + SING
~72 TWh
6
2016 Highlights (cont’d)
Successful Commissioning of 573 MW and Environmental Equipment
2016
JUNE 30TH
20MWTUNJITA
MAY 28TH
21MWANDES SOLAR
JULY 9TH
266MW(*)COCHRANE UNIT 1
OCTOBER 12TH
266MW(*)COCHRANE UNIT 2
OCTOBER 13TH
20MWCOCHRANE BESS
JUNEENVIRONMENTAL
EQUIPMENT
(*): In January 2017, the Chilean ISO approved an increase in Cochrane’s gross installed capacity to 550 MW
FEBRUARY ENERGY EXPORT
INTERANDES
7
2016 Highlights (cont’d)
Recovery Signs in Argentina
Argentina’s economic upturn coupled with key economic reforms and 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)
TERMOANDES (643 MW)
8
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
9Contains Forward-Looking Statements
COMPANY OVERVIEW
10
Markets Overview
CHILE ($581m EBITDA)
4,132 MW of installed capacity (SIC+SING)
COLOMBIA ($172m EBITDA)
90%
10%
ENERGY SALES
Unregulated Customers Spot Sales
ARGENTINA ($25m EBITDA)
99%
1%
NET GENERATION
Thermal Solar
6,987GWh
SIN
G
30%
57%
13%
ENERGY SALES
Unregulated Regulated Spot Sales
82%
17%1%
GENERATION
Thermal Hydro Other
8,208GWhS
IC
50%50%
ENERGY SALES
Contract Sales Spot
100%
GENERATION
Hydro
4,373GWhS
IN
53%47%
ENERGY SALES
Contract Spot Sales
100%
GENERATION
Thermal
4,637GWh
SA
DI
$641m
$849m
$427m
$112m
SING ASSETS, 1,389 MWNORGENER, 277 MW, coalANGAMOS, 558 MW, coalCOCHRANE, 532 MW, coalANDES SOLAR, 21MW
SIC ASSETS, 2,743 MW,
VENTANAS, 884 MW, coalGUACOLDA, 760 MW, coalELECTRICA SANTIAGO, 750 MW, gas & dieselHYDROS, 271 MWOTHERS, 78 MW, diesel
SADI ASSETS, 643 MW,TERMOANDES, 643 MW, gas
SIN ASSETS, 1,020 MW,CHIVOR, 1,000 MW, hydroTUNJITA, 20 MW, hydro
11
We operate a 5,795 MW diversified portfolio in terms of markets and technologies
Portfolio Overview
71%
18%
11%
Chile Colombia Argentina
Countries
47%
24%
18%
11%
SIC SING SIN SADI
Markets
77%
23%
Thermal Renewable
Technology
52%
22%
23%
2%1%
Coal Hydro
Gas/Diesel Diesel
Other
Fuel
44%
31%
22%
3%
SIC SING SIN SADI
EBITDA
5,795MW
5,795MW
5,795MW
5,795MW
$778M
75%
22%
3%
Chile Colombia Argentina
$778M
12
Long term contracts with creditworthy and reliable offtakers
Commercial Strategy for Chile
Overview
Commercial strategy aims to maximize cash flow while minimizing volatility
Optimal contracted position seeks to match contracted energy with long term efficient generation
Contract customers include distribution companies (regulated) and unregulated customers (mining and industrial)
Contracts include Price indexation mechanisms (coal and US CPI) and passthrough provisions (regulatory risks)
11 years average life of outstanding contracts
Customers
0
5,000
10,000
15,000
20,000
25,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
GW
h p
er
Ye
ar
Regulated Non-Regulated Guacolda
Discos30%
Mining62%
Industrial8%
Contractavg. life: 11 years
13
Colombia Argentina
Commercial Strategy for Colombia and Argentina
Contract EnergyEnergia Plus
Contracts
Remaining Generation Spot Sales to ISO
47%53%
ENERGY SALES
Contract Spot
~80% of Expected
Generation
Medium Term
Contracts
(1-4 Years)
Remaining GenerationSpot and Frequency
Regulation Sales
Firm Energy
(~3,000 GWh)
Reliability Charge
Revenue
50%50%
ENERGY SALES
Contract Spot
14
Phase I 2007-2013: 1,677 MW of new capacity
Successful Project Development and Construction
BESS Angamos IBESS Norgener2 2
12 MW
Energy Storage
Start Date: Nov.
2009
20 MW
Energy Storage
Start Date: Dec.
2011
Guacolda III Guacolda IV4 4
152 MW
Coal
Start Date: Jul. 2009
152 MW
Coal
Start Date: Mar.
2010
Angamos I & II1
558 MW (2 units)
Coal
Start Date: Apr./Oct.
2011
1 2
Los Vientos3
132 MW
Diesel
Start Date: Jan. 2007
4
Ventanas III Ventanas IV6 7Santa Lidia5
139 MW
Diesel
Start Date: Apr. 2009
272 MW
Coal
Start Date: Feb. 2010
272 MW
Coal
Start Date: Mar. 2013
36
7
5
Antofagasta
Santiago
Extensive experience in project development and execution on time and within budget
49% increase of installed capacity between 2007 and 2014
Total investment of $3 B
3,417
5,094
2007 2014
+49%
15
Phase II 2015-2019: 1,256 MW of new capacity
Successful Project Development and Construction
$4 B investment, fully funded
+21%
Guacolda V – 152 MW
Angamos Desalinization
Tunjita – 20 MW
Andes Solar – 21 MW
Cochrane – 532 MW
Alto Maipo – 531 MW
Guacolda V - COMPLETED
Construction Progress
152 MW
Coal
Start Date: Dec.
2015
Angamos Desal - COMPLETED
Desalination plant
Andes Solar - COMPLETED
21 MW
Solar
Start Date: May
2016
Tunjita - COMPLETED
20 MW
Hydro
Start Date: Jun 2016
Cochrane - COMPLETED
532 MW (2 units)
Coal
Start Date: Oct 2016
Alto Maipo
531 MW
Run of River Hydro
Progress: 49%
152
573
531
2015
5.222
5.070
2019
6.326
5.795
2016
5.795
5.222
16
Strong Financial Performance
Total Debt and Net Debt/EBITDAEBITDA and EBITDA Margin
Total Capex Capital Allocation
355 377 426 581
209 263 246 172 624
672 691778
28% 29% 32% 34%
2013 2014 2015 2016
Chile Colombia Argentina Ebitda Margin
1,298 1,520 1,669 2,198
1,487 1,214 1,706
1,626 2,785 2,734 3,375
3,824 3.3x 3.7x4.5x 4.3x
2013 2014 2015 2016
PF / Non Recourse Debt Corporate Debt Net Debt / Ebitda
336
656 866
473
82
127
109
83 532
830
1,002
562
2013 2014 2015 2016
Construction Maintenance Environmental
162 112 201
124
210 230
235
93
66
430 92
102
439
772
527
319
2013 2014 2015 2016
Equity Contribution Dividends Debt Paydown
17
Strong Capital Structure
Manageable Amortization Profile for US$ 3.8 M Debt
Average Cost: 5.7%
Average Life: 13 years
Net Debt/EBITDA: 4.3x (2.1x excluding non recourse debt)
98% denominated in USD
91% at fixed interest rate
43%
57%
Recourse Debt Non Recourse Debt
143 147 188 166
575
181 198 209
589
1,429
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026/2073
AMORTIZATION SCHEDULE (US$ M)
Recourse Debt Non Recourse Debt
$3,824m
18
Key Investment Considerations
LEADING POSITION
Largest energy producer in Chile, and major producer in Colombia, with one of the most efficient plants in Argentina
DIVERSIFICATION One of the most diversified Latin American generator in terms
of geographical footprint and technology
HIGH GROWTH Outgrown peers in addition of new capacity and secured future
growth through fully-financed pipeline
STABLE CASH FLOWS
Largely contracted US dollar-denominated revenue streams with built in fuel and inflation passthrough provisions
STRONG CAPITAL STRUCTURE
A successful financing history committed to investment grade rating
19Contains Forward-Looking Statements
APPENDIX
20
We operate a 5,795 MW diversified portfolio in terms of markets and technologies
Assets Overview
SIC (2,744 MW) SING (1,388 MW)Colombia (1,020 MW) Argentina (643 MW)
VENTANAS, 884MW4 coal unitsLocated in ValparaisoStart of operations:1964/1996/2010/2013
GUACOLDA, 760MW5 coal unitsLocated in HuascoStart of operations:1995/1996/2009/2010/2015
ELECTRICA SANTIAGO750MW2 gas/diesel units2 diesel units
HYDRO PLANTS271MW4 run of river hydro units
Chile
NORGENER, 277MW2 coal unitsLocated in TocopillaStart of operations:1995/1997
ANGAMOS, 558MW2 coal unitsLocated in MejillonesStart of operations:2011
COCHRANE, 532MW2 coal unitsLocated in MejillonesStart of operations:2016
ANDES SOLAR, 21MW1 PV solarAdjacent to Andes substationStart of operations:2016
CHIVOR, 1,000MW10 hydro unitsLocated in BocayaStart of operations:1977/1981
TUNJITA, 20MW1 hydro unitsLocated in BocayaStart of operations:2016
TERMOANDES, 643MWCombined CycleTurbines: 2 gas, 1 steamLocated in SaltaStart of operations:1999
Energy Storage (Chile)
ENERGY STORAGE52MW3 units in Norgener, Angamos and Cochrane
BACKUP PLANTS, 337MW3 diesel plants: Los Vientos, Santa Lidiaand Laguna Verde
21
Angamos
EBITDA and EBITDA MarginRevenue
Credit Metrics Capital Expenditures
Summary of Historical Financials
127 119 112 111122
38% 39% 38% 39% 40%
2012 2013 2014 2015 2016
Ebitda Ebitda Margin
26
5
11
16
4
0
30
2012 2013 2014 2015 2016
198 225 214 238 252
133 81 83 44 52
332308 298 284
310
2012 2013 2014 2015 2016
Contracted Spot Other
6.5x5.8x
6.8x 6.9x6.2x
3.0x3.1x
3.0x
2.5x2.8x
2012 2013 2014 2015 2016
Net Debt / Ebitda Ebitda / Finance Expenses
22
Guacolda
EBITDA and EBITDA MarginRevenue
Credit Metrics Capital Expenditures
Summary of Historical Financials
613554
515438
381
2012 2013 2014 2015 2016
117
165
129 12215019%
30%25%
28%
39%
2012 2013 2014 2015 2016
Ebitda Ebitda Margin
98125
342
11578
2012 2013 2014 2015 2016
4.6x
2.9x
4.8x
6.3x4.9x
3.7x
7.0x 7.3x
3.9x3.5x
2012 2013 2014 2015 2016
Net Debt / Ebitda Ebitda / Interest Expenses
23Contains Forward-Looking Statements
2016 FINANCIAL REVIEW
24
Consolidated Financials
Key Financials (US$ mn.) 2016 2015 Var. (%)
Operating Revenues $2.286 $2.165 6%
Gross Profit $625 $583 7%
EBITDA $778 $691 13%
EBITDA Margin 34% 32% 2%
Net Income $261 $265 -1%
SIC44%
SING31%
SIN22%
SADI3%
$778
2016
SIC39%
SING22%
SIN36%
SADI3%
$691
2015
EBITDA BY MARKET
25
EBITDA Bridge
EBITDA Increased by $87 mn. (13%)
65
90
74
2016
778
SINSADI
6
SINGSIC2015
691
26
SIC Market
EBITDA Increased by $65 mn. (24%)
Higher demand from unregulated customers
Higher hydro and coal generation
Lower margin in Nueva Renca
338
273
2015
+24%
2016
EBITDA VARIATION ELECTRICITY REVENUE BREAKDOWN
Regulated Customers
57%
Unregulated Customers
30%
Spot Sales13%
$849
27
SING Market
EBITDA Increased by $90 mn. (58%)
Cochrane and Andes Solar started operations
Higher availability due to lower maintenance activities
Better PPA terms and lower system overcosts
EBITDA VARIATION ELECTRICITY REVENUE BREAKDOWN
243
153
2015
+58%
2016
Unregulated Customers
90%
Spot Sales10%
$641
28
Contract Sales50%
Spot sales50%
SIN Market
EBITDA Decreased by $74 mn. (30%)
Lower average spot prices
Colombian Peso devaluation
Higher Generation
EBITDA VARIATION ELECTRICITY REVENUE BREAKDOWN
172
246
-30%
20162015
$427
29
Contract Sales53%
Spot sales47%
SADI Market
EBITDA Increased by $6 mn. (30%)
Higher generation due to lower maintenance activities
Higher prices in spot sales, as per Resolution 22/2016
Lower energy sales under Energia Plus program
EBITDA VARIATION ELECTRICITY REVENUE BREAKDOWN
25
19
2015 2016
+30%
$112
30
Net Income
Attributable to AES Gener (US$ mn.)
69
87
14
26
14
19
95
2016
2613
170
2015
265
2015
Adjusted
One Time
Impacts
EBITDAVariation
Depreciation
Higher Interest
Expense
Income Tax
NCI and Other
DFC Write Off
31
Cash Flow
470
267 317
Operating CF
422
Dec-15 Dec-16FX Variation
5
Financing CFInvestment CF
542
CASH FLOW
Cash and Cash Equivalents
67%
Undrawn Committed Facilities
33%
$706
LIQUIDITY 2016 EOP
32Contains Forward-Looking Statements
CORPORATE PRESENTATIONAES GENER