AES Gener S.A. Gener earthquake deployment rapid recovery of our plants AES Chivor record financial...

AES Gener S.A.AES Gener S.A.May 2011

AES Gener Creating Value – Our Pillars

2

Solid Track Record in Attractive Markets


Attractive Growth Potential


Diversified Operating Portfolio


Successful Business Model


Financial StrengthFinancial Strength

¿Why invest in AES Gener?










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Important Presence in Three Major Markets

SIC SING COLOMBIA

2,361 MW in operation• 52% coal

• 11% hydro (run-of-river)

• 16% gas/diesel

1,184 MW in operation• 46% coal

• 54% gas/diesel

1,000 MW in operation• 100% hydro (dam)

• 16% gas/diesel

• 20% diesel

• 1% biomass

270 MW in construction• coal

259 MW in construction• coal

TermoAndes is connected to the SING and the Argentine system (SADI).

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4,545 MW in operation & 529 MW in construction

Solid Presence in Attractive and Stable Markets

• Credit Rating:

> BBB-, Ba1

• Rapidly growing and liquid capital market

• Established (1994) market-oriented and

• Credit Rating:

> A+, Aa2

• Developed and liquid domestic capital market

• Pioneer (1982) market-oriented and

Chile Colombia

• Established (1994) market-oriented and transparent regulatory framework

• Low per capita electricity consumption and steady industry growth

> Average 5-year projected energy demand growth: 4% p.a.

• Pioneer (1982) market-oriented and transparent regulatory framework

• Resilient electric sector with growth potential

> Average 5-year projected energy demand growth

– SIC: 6.4% p.a.

– SING: 6.2% p.a.

3,000

4,000

5,000

6,000

71%14%

15%

AES Gener Shareholders(as of March 31, 2011)

Growing Shareholder Returns

Other

Pension Funds

AES Gener Market Capitalization(US$ Million)

2,3392,698

2,087

3,601

4,425

4,945

0

1,000

2,000

2005 2006 2007* 2008 2009* 2010 Abr-11

6

AES

Note: *Primary equity offerings executed in 2007 and 2009

1,147

2,087

Economic Advantages from AES

� Construction and financing expertise

� Construction contractors

� Equipment and fuel suppliers

� Engineering, consulting and

Global Access to:

5 2

3

8 2 6

62 24

34 2

2

5 2

3

8 2 6

62 24

34 2

2

In OperationIn Construction

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� Engineering, consulting and insurance services

� International commercial bank markets, specifically project finance

3

3

3

2

2

3

5

2

2

4

4

5

24

2

2

3

34 2

44

2

2

3

3

3

2

2

3

5

2

2

4

4

5

24

2

2

3

34 2

44

2

2

• Operation in 28 countries

• 132 generation plants with > 40,000 MW installed capacity– 1,755 MW wind generation

– 37 MW solar generation

• 14 distribution companies with annual sales of 78,000 GWh










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300

400

500

600

Diversified Portfolio by Market Mitigates Risk

Installed Capacity by Market

SICSING

EBITDA by Market(US$ Million)

27%

31%28%

39%

40% 41%

43%

277331

270

397

528

474

0

100

200

2005 2006 2007 2008 2009 2010

SIC SING Colombia

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Colombia

Diversification reduces earnings and cash flow volatility

44% 47%

16%18%

32%17%

25%

25%

45%

42%40%

31%39%

Diversified Portfolio by Energy Source Guarantees Reliability

Coal 40%

Hydro 28%

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Gas/Diesel 22%

Diesel 9%

Biomass 1%

Note: Percentages based on installed capacity as of April 30, 2011










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Commercial Strategy Maximizes Cash Flow, Minimizing Risk and Reducing Uncertainty

• Long-term contracts with indexed prices for efficient units (hydro, coal)

• Spot market sales with back-up units

• Contracts for 70-80% of projected generation

• Remaining generation for spot sales

Chile Colombia

74%

22%

4%

84%

16%

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2010 Physical Sales: 2010 Physical Sales :

Distcos

Unregulated customers

Spot (Net)Spot (Net)

Customers

Comprehensive Operational Excellence for Sustainable Generation

• Experienced management and extensive operating expertise

• Continuous operating and quality improvement programs

• Safety is first corporate value

• Implementation of world-class safety programSafety

Operational Efficiency

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• Maintenance and operational enhancements to guarantee commercial availability

• Community relations policy to guide interaction between company and surrounding communities

• Proactive engagement programs

• Integrated environmental management

• Continual environmental improvements and investmentsEnvironment

Community

Efficiency










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- Baa3 by Moody’s

- BBB- by S&P

- BBB- by Fitch Ratings

Sound Financial Strategy

- Equity offerings

- Corporate debt

- Project finance

Balanced Capital Structure

Investment Grade Rating

US$816 million as of December 31, 2010- US$593 million cash balance- US$223 million committed credit facilities

- BBB- by Fitch Ratings

Manageable maturities and amortization schedule

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Amortization Schedule

Liquidity and Committed Credit Facilities

Risk mitigation strategy to minimize earnings and cash flow volatility Active Risk Management

809 853 930 1,155

1,789

2,120

-

500

1,000

1,500

2,000

2,500

2005 2006 2007 2008 2009 2010

US

$ M

illion

Total Debt

277 331

270

397

528 474

-

100

200

300

400

500

600

2005 2006 2007 2008 2009 2010

US

$ M

illion

EBITDA

Consistent Growth of Financial Results

EBITDA increased 71% in the last 5 years Debt increase associated with projects

54 70

218

657

865

511

-

200

400

600

800

1,000

2005 2006 2007 2008 2009 2010

US

$ M

illion

CAPEX4.6%

4.0%

1.6%

2.2%

3.7%4.0%

0%

1%

2%

3%

4%

5%

2005 2006 2007 2008 2009 2010

%

Dividend Yield

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EBITDA increased 71% in the last 5 years Debt increase associated with projects

EBITDA = Gross Profit + Administrative Expenses + Depreciation + Minor Adjustments2008, 2009, 2010: Based on IFRS Financial Statements2005-2007: Based on CHGAAP Financial Statements. 12 Month Average FX

AES Gener 2010 Highlights

� AES Gener earthquake deployment rapid recovery of our plants

� AES Chivor record financial results in Colombia

� Initiation of five new long-term distco supply contracts (~3,600 GWh/year)

� Start of commercial operation of new efficient capacity in the SIC:• Nueva Ventanas (272 MW a coal)

• Guacolda IV (152 MW a coal)• Guacolda IV (152 MW a coal)

� Completion of Electrica Santiago restructuring:• Settlements with four gas transport companies significant reduction in fixed costs

• Purchase of CGE minority share (7%)

• Agreement with local supplier for purchase of LNG

� Resumption of Campiche construction in the SIC (270 MW - coal)• Estimated commercial operation: 1Q-2013

626

400

600

800

1,000

1,200

Manageable & Diversified Debt Profile

1,135

Amortization Schedule(US$ Million)Total Debt US$ 2.1 Billion

Project Finance US$1,067 Million Gener Senior Notes

US$400 Million

Chivor Senior NotesUS$170 Million

38 45 59 105

57 68 -

200

400

2011 2012 2013 2014 2015 2016 2017 2018+

Project Finance Subsidiaries Corporate

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Local BondsUS$463 Million

Syndicated Credit US$33 Million

97% denominated in USD / 87% at fixed interest rate

Note: Debt as of December 31, 2011










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Successful Expansion Plan

• Market presence and know-how

• Extensive experience in project management

• Active engagement with communities and interest groups

48% Increase

5,094 MW

1,660 MW

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communities and interest groups

• Integrated approach to mitigate transition from construction to operation

• Total investment: US$ 3 billion

3,434 MW

5,094 MW

Installed Capacity2006

Expansion plan Installed Capacity2013

Efficient Capacity

BESS Norgener – SING: 12 MW battery

• Start date : November 2009

Guacolda III – SIC: 152 MW coal

• Start date: July 2009

Nueva Ventanas – SIC: 272 MW coal

• Start date : February 2010

Los Vientos – SIC: 132 MW diesel

• Start date : January 2007

Santa Lidia – SIC: 139 MW diesel

• Start date : April 2009

Projects for 1,123 MW Completed On-time and On-budg et

Innovative CapacityBack-up Capacity

Guacolda IV – SIC: 152 MW coal

• Start date: March 2010

Angamos I – SING: 264 MW coal

• Start date : April 2011

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SING

Projects for 529 MW in Construction

Efficient capacity:

Angamos II – 259 MW coal

• Start date: October 2011

Innovative Capacity:

BESS Angamos – 20 MW battery

SIC

Efficient Capacity:

Campiche – 270 MW coal

Antofagasta

Santiago

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• Start date: November 2011 • Start date : 1Q-2013Santiago

• 531 MW hydro run-of-river (2 units)- Alfalfal II: 275 MW

- Las Lajas: 256 MW

• Environmental approval obtained in 2009

• Located 50 km east of Santiago

Principal Projects in Development

Alto Maipo - SIC

Santiago

Antofagasta

• Located 50 km east of Santiago

• Same river basin as Gener’s 178 MW Alfalfal I facility

• Minimal new transmission lines (17 km)

• Low environmental impact for large hydro: - No reservoir dams

- Over 90% of works underground

- No impact on indigenous communities or native forests (no re-settlement)

- No impact on Santiago’s water supply

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Santiago

• 560 MW coal


• Similar to Angamos facility

• Located adjacent to Angamos units- Synergies related to port services and coal yard, among others

• Pulverized coal technology, with use of bituminous and sub-

Cochrane - SING

Antofagasta

Santiago


• Pulverized coal technology, with use of bituminous and sub-bituminous coal

• Includes emissions reduction equipment to control SO2, NOx, and particulate emissions

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Santiago

• 152 MW coal


• 50% ownership

• Similar to existing facilities

• Located adjacent to existing facilities- Synergies related to port services and coal yard, among others

Guacolda V - SIC

Antofagasta

Santiago


• Pulverized coal technology, with use of bituminous and sub-bituminous coal

• Includes emissions reduction equipment to control SO2, NOx, and particulate emissions

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Santiago

• 20 MW hydro run-of-river (2 units)

• AES Chivor’s Esmeralda Reservoir

• Use of flows from Tunjita river deviation

Tunjita - Colombia

Bogotá


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Los Robles - SIC• 750 MW

• 2 coal units


• Includes the construction and operation of port

Other Renewables

> 2,000 MW in Development

Other Projects in Development

Other Renewables• Existing water rights

• Battery Storage (BESS)

• Wind

• Solar

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1,992 MW with environmental approval




� Sound strategy

� Growing financial results

Creating Shareholder Value







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� 4,545 MW in installed operating capacity

� Chile & Colombia are stable markets with growing demand

� Geographical and technological diversification

� Diversification reduces risk

� Maximization of cash flow, minimization of uncertainty

� Comprehensive operational excellence

results

reliable energy

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www.aesgener.com

reliable energy

AES Gener S.A. Gener earthquake deployment rapid recovery of our plants AES Chivor record financial...

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