3Q-2018 CORPORATE PRESENTATION Company Overview 1 AES GENER AT A - - PowerPoint PPT Presentation

CORPORATE

PRESENTATION

3Q-2018

Company Overview 1

IMPROVING LIVES IN

Chile, Colombia AND Argentina

AES Gener Is Energized By A Regional Workforce Of

+1,300 PEOPLE

RECOGNIZED AS A

Great Place To Work in

CHILE COLOMBIA ARGENTINA

Founded In 1981

And Acquired by The AES Corporation in 2000, Who Currently owns 66.7%

Named to

Dow Jones Sustainability Index for Chile

LISTED ON

Santiago Stock Exchange

5,063

GROSS MW in operation

3,400 1,020 643

531

GROSS MW under construction

(Alto Maipo Project in Chile)

Technologies

Coal 3,029 MW Hydro 1,291 MW Gas/Diesel 709 MW Others 34 MW

$8.2B $886M $3.7B $2.4B

RATED

Baa3 / BBB- / BBB- BY

MOODY’S S&P GLOBAL FITCH RATINGS

Market Share

Chile 28% by generation Colombia 7% by generation Argentina 3% by generation

Commercial Business Largely Contracted

EFFICIENT GENERATION CONTRACTED WITH AN AVERAGE LIFE OF 11 YEARS IN CHILE MARKET CAP

AS OF Sep 28, 2018

EBITDA

LTM 3Q-2018

TOTAL ASSETS

OWNED & MANAGED

• CONS. DEBT

3Q-2018

AES GENER AT A GLANCE

LEADING GENCO CONTROLLED BY THE AES CORPORATION

3

LEADING POSITION Largest energy producer in Chile, and major producer in Colombia, with one of the most efficient plants in Argentina NEW GROWTH STRATEGY Competitive advantages to drive growth in renewables throughout the region, disciplined capital allocation decisions DELEVERAGING $528m prepaid since Dec 2017, committed to enhance the capital structure align with Investment Grade profile DIVERSIFICATION One of the most diversified Latin American generator in terms of geographical footprint and technology STABLE CASH FLOWS USD-denominated contracts with built in fuel and inflation pass-through provisions

4

KEY INVESTMENT

CONSIDERATIONS

Ratings System Data Energy Demand Generation by Fuel type S&P A+ 24,096 MW Installed Capacity

+2.46%

National Unregulated Demand Growth (CAGR 2018-2030)

+3.06%

National Regulated Demand Growth (CAGR 2018-2030) Moody’s A1 76,278 GWh Generation Fitch A

Regulated 46% Unregulated 54%

Chile Expected Energy Sales Growth (CAGR 2030) source: Fijación De Precios De Nudo De Corto Plazo Informe Técnico Definitivo (January, 2018) LTM 3Q-2018 System Data for Chile

Chile

~18 M inhabitants ~$267B GDP as of 2017

5

70,530 GWh

Thermal 58% Hydro 31% NCRE 11%

76,278 GWh MARKET

OVERVIEW

Ratings System Data Energy Sales Generation by Fuel type S&P BBB- Moody’s Baa2 Fitch BBB 17,294 MW Installed Capacity SIN Demand Growth (CAGR 2018-2030) 67,988 GWh Generation S&P B+ Moody’s B3 Fitch B 38,228 MW SADI Installed Capacity SADI Demand Growth (CAGR 2016-2030) 139,430 GWh SADI Generation

Thermal 64% Hydro 29% NCRE 5% Nuclear 2% SIN Expected Energy Sales Growth (CAGR 2030) source: UPME April 2018 Forecast. SADI Expected Energy Sales Growth (CAGR 2030) source: MINEM 2030 Energy Scenario Report - Trend Scenario (December, 2017) LTM 3Q-2018 System Data for Colombia and Argentina

Colombia

~49 M inhabitants ~$310B GDP as of 2017

Argentina

~44M inhabitants ~$635B GDP as of 2017

6

+3.19% +3.36%

67,456 GWh 134,784 GWh 67,988 GWh 139,430 GWh MARKET

OVERVIEW

Residential 43% Comercial 29% Industrial 28% Thermal 19% Hydro 81% Regulated 68% Unregulated 32%

91% 1% 8%

14,791GWh

CHILE ($616mn EBITDA) COLOMBIA ($221mn EBITDA) ARGENTINA ($49mn EBITDA) SEN SIN SAD SADI

SEN ASSETS, 3,400 MW

NORGENER, 277 MW, coal ANGAMOS, 558 MW, coal COCHRANE, 550 MW, coal ANDES SOLAR, 21MW solar PV VENTANAS, 884 MW, coal GUACOLDA, 760 MW, coal HYDROS, 271 MW OTHERS, 79 MW, diesel, biomass

SADI ASSETS, 643 MW

TERMOANDES, 643 MW, gas

SIN ASSETS, 1,020 MW

CHIVOR, 1,000 MW, hydro TUNJITA, 20 MW, hydro

GENERATION ENERGY SALES GENERATION ENERGY SALES GENERATION ENERGY SALES

25% 66% 9%

$1,790mn

100%

4,708GWh

77% 23%

$382mn

100%

4,331GWh

49% 51%

$155mn

MARKETS

OVERVIEW

LTM 3Q-2018 FIGURES

7

CHILE (3,400MW) COLOMBIA (1,020 MW) ARGENTINA (643 MW)

Guacolda, 760MW

5 coal units Huasco

COD:1995/1996/2009 2010/2015

Hydro Plants 271MW

4 run of river hydro units Cajon del Maipo

COD:1923/1928/1944/1991

Angamos, 558MW

2 coal units Mejillones

COD: 2011

Cochrane, 550MW

2 coal units Mejillones

COD: 2016

Andes Solar, 21MW

PV solar Adjacent to Andes substation

COD: 2016

Chivor, 1,000MW

10 hydro units Bocaya

COD: 1977/1981

Tunjita, 20MW

1 hydro unit Bocaya

COD: 2016

Termoandes, 643MW

Combined Cycle Turbines: 2 gas, 1 steam Salta

COD: 1999

ENERGY STORAGE (CHILE)

Energy Storage 52MW

Norgener 12MW Angamos 20MW Cochrane 20MW

Backup Plants, 79MW

Laguna Verde 66MW Diesel Laja 13MW Biomass

Norgener, 277MW

2 coal units Tocopilla

COD:1995/1997

Ventanas, 884MW

4 coal units Valparaiso

COD:1964/1977/2010/2013

8

PORTFOLIO

OVERVIEW

5,063MW GEO & TECH DIVERSIFIED

EBI EBITD TDA Countries Countries Tec echno hnolog logy Fuel Fuel

69% 25% 6% Chile Colombia Argentina

$886mn 5,063 MW 5,063 MW 5,063 MW

54% 28% 18% Chile Colombia Argentina 74% 26% Thermal Renewable 60% 14% 25% 1% Coal Gas/Diesel Hydro Solar/Biomass

DIVERSIFIED

Portfolio

9

• 5,000

10,000 15,000 20,000 25,000 30,000 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

GWh per Year

Regulated Non Regulated Guacolda

Distribution 24% Industrial 11% Mining 65%

11 year Avg. Contract Life

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 regulated customers (distribution companies) and unregulated customers (mining, commercial and industrial)

Contracts include Price indexation mechanisms (coal and US CPI) and pass-through provisions (regulatory risks)

~11 years average life of outstanding contracts

10

CHILE

Commercial Strategy

Colombia Argentina

57% 43%

ENERGY SALES Contract Spot ~80% of Expected Generation Medium Term Contracts (1-4 Years) Remaining Generation Spot and Frequency Regulation Sales Firm Energy (~3,000 GWh) Reliability Charge Revenue Contract Energy Energía Plus Contracts Remaining Generation Energía Base Spot Sales to ISO

24% 76%

ENERGY SALES Contract Spot

7,096 GWh 4,331 GWh

11

COLOMBIA & ARGENTINA

Commercial Strategy

LTM 3Q-2018 Figures

1,788 2,198 2,387 2,393 1,552 1,626 1,353 1,304 3,340 3,824 3,741 3,697 4.4x 4.3x 4.4x 3.9x 2015 2016 2017 LTM 3Q-2018

PF/Non-Recourse Corporate Debt Net Debt/EBITDA

EBITDA & EBITDA margin Total Debt and Net Debt / EBITDA Total CAPEX Capital Allocation

12

426 581 591 616 246 172 174 221 19 25 29 49 691 778 793 886 32% 34% 33% 33% 2015 2016 2017 LTM 3Q-2018

Chile Colombia Argentina EBITDA Margin

893 479 405 481 109 83 92 86 1,002 562 497 567 2015 2016 2017 LTM 3Q-2018

Construction Maintenance

279 53 74 269 235 93 261 111 92 102 471 636 606 248 806 1,017 2015 2016 2017 LTM 3Q-2018

Equity Contribution Dividends Paid Debt Payment

STRONG

Financial Performance

IFRS (LTM 3Q-2018 Figures)

$3,697mn

AVERA VERAGE E COS COST AVERA VERAGE E LIF IFE NET ET DE DEBT/ BT/ EBITD EBITDA RA RATE TE

5.7% 5.7% 14 14

Years

3.9x 3.9x

(Consolidated)

94% 94%

Fixed Rate

Recourse Debt

$1,30 ,304 mn mn 35% 35%

Non-Recourse Debt

$2,39 ,393 mn mn 65% 65% 60 121 123 126 128 153 148 158 224 46 214 193 2020 2018 152 152 167 167 1,376 35 2019 22 2021 24 2022 30 2023 2024 2025 516 2026/2073 284 284 145 145 340 340 183 183 351 351 183 183 1,89 ,892

13

Amortization Schedule ($mn)

2.0 2.0x

(Recourse Debt)

AES GENER DEBT PROFILE

$3,697MN AS OF SEPTEMBER 30, 2018

Business

SOLUTIONS

5

Investment GRADE RATING

TECHNOLOGIES

5

NCRE Hydro Thermal Battery Desal

ENERGY

PROVIDER

• f choice

in South America

STRATEGY

14

STRATEGY EXECUTION

SECURING CONTRACTS FOR GROWTH PIPELINE Wind 2,272 MW Solar 369 MW Desal +2,000 l/s Hydro 531 MW

Under Construction Under Development

WATER

DESALINATION

Under Development

+3,100 MW

RENEWABLE ENERGY

15

APPENDIX 2

Alto Maipo

Overview Project Layout

2 1

Project Location Metropolitan Region

1 2

Alfalfal II. 264MW Unit Las Lajas. 267MW Unit Tunnel

L1 VL-4 VL-8 VA-1 VA-2 VA-4 V5 V1

Technical Aspects Alfalfal II Las Lajas

Installed capacity (MW) 264 267 Number of units 2 2 Type of turbines Pelton Pelton Voltage (kV) 12/220 12/110

Ownership Main Contractors

AES Gener 93%

Strabag 7%

17

ALTO MAIPO

OVERVIEW

ALTO MAIPO

CONSTRUCTION STATUS

70%

Complete

$48mn

EQUITY CONTRIBUTIONS PENDING During Construction

Tunnels

46km

Excavated

18 2 1 1 2

Alfalfal II. 264MW Unit Las Lajas. 267MW Unit Tunnel

L1 VL-4 VL-8 VA-1 VA-2 VA-4 V5 V1

Las Lajas Headrace Total length 17km Las Lajas Tailrace Total length 15km Alfalfal Headrace Total length 27km Volcan Total length 14km Alfalfal II Tailrace Total length 3km

Progress as of November 2018

18

19

CHANGE IN RISK PROFILE

Lump sum fixed price contract with Strabag, including guaranteed completion dates backed by:

• $300mn Letters of Credit
• Corporate Guarantee from Strabag SE

Transfer of Geological and construction risks Strong incentives for early completion COD Las Lajas & Alfalfal II expected in 2020

PROJECT CAPITALIZATION

Fully funded plan, considering:

• $3,048mn construction cost
• Additional $392mn payable over 20-

year after COD Lenders commitment for US$823 mn, including incremental funding of $135mn Incremental shares to Strabag if certain milestones are met

AES GENER COMMITMENTS

AES Gener will contribute:

• $200mn based on progress and debt

disbursements

• Up to $200mn towards completion

and for project costs or to prepay debt No additional debt to be issued at AES Gener level

ALTO MAIPO

KEY CHANGES TO MITIGATE RISK

APPENDIX 3

Financial Review Third Quarter 2018 Earnings Call

Key Financials ($ mn) YTD -2018 YTD -2017

• Var. (%)

3Q -2018 3Q -2017

• Var. (%)

EBITDA 655 562 16% 232 182 27% EBITDA Margin 33% 32% 1% 34% 30% 4% Net Income 279 114 145% 61 26 139% EBITDA BY MARKET Year-to-Date 232

4% 6% 6% 34% 34%

3Q-2017

60%

3Q-2018

32% 64%

182 Colombia Chile Argentina EBITDA BY MARKET Third Quarter 562

6% 6% 3% 29%

YTD-2017

65%

YTD-2018

25% 25% 72%

655

21

2018 THIRD QUARTER AND YEAR-TO-DATE

CONSOLIDATED

FINANCIALS

25 48 20 2018 2017 562 655

22

2018 YEAR-TO-DATE

EBITDA BRIDGE

16% INCREASE, $93 MN

24 403 143 428 2Q Var 151 144 7 2017 140 2018 1Q Var 6 3Q Var 137 116 +6%

CHILE

Main Drivers 3Q-2018 EBITDA Variation YTD-2018

Year-to-Date EBITDA increased by $25mn

3Q 1Q 2Q

23

PPAs BEGAN SUPPLY LOWER MAINTENANCE COSTS ORGANIZATIONAL EFFICIENCY

COLOMBIA

Main Drivers 3Q-2018 EBITDA Variation YTD-2018

Year-to-Date EBITDA increased by $48mn

41 46 43 22 21 65 58 79 5 2017 1Q Var 2Q Var 3Q Var 2018 142 190 +33% 3Q 2Q 1Q

24

HIGHER CONTRACT PRICES LARGER CONTRACT VOLUME GREATER NET SPOT SALES

ARGENTINA

Year-to-Date EBITDA increased by $20mn

25

Main Drivers 3Q-2018

25

EBITDA Variation YTD-2018

4.2 11.1 4.2 6.9 8.0 5.1 12.2 8.3 13.4 2018 2Q Var 2017 1Q Var 3Q Var 37 17 +119% 3Q 1Q 2Q

LARGER CONTRACT VOLUME HIGHER CAPACITY PRICES LOWER TRANSMISSION COSTS

Equity Earnin ings

93 49 104 64 9M-2017 11 8 5 10 5 9M-2018

EBITD TDA Varia ianc nce

Depreciatio eciation

Interest Exp xpense nse Non- Control

• lling

ling Interest

FX Losses es

Inco come Tax Other Gains ns Other Non- Operatin ing Varia ianc nces

114 279

26

2018 YEAR-TO-DATE ($MN)

NET INCOME

ATTRIBUTABLE TO THE PARENT

Mainly driven by ESSA sale

Year-to-Date Cash Flow Liquidity as of September 30, 2018

$533mn

Cash and Cash Equivalents

$283 mn

53%

Undrawn Committed Facilities

$250 mn

47%

231 142 76 Financing CF Dec-17 Operating CF Investing CF FX Impact Sep-18

283 276

6

27

2018 YEAR-TO-DATE ($MN)

CASH FLOW

AND LIQUIDITY

SUMMARY OF HISTORICAL FINANCIALS (US$mn)

6.9x 6.2x 7.3x 4.9x 2.5x 2.8x 2.4x 3.1x 2015 2016 2017 LTM 3Q-2018

Net Debt/EBITDA EBITDA/Financial Expense

16 4 6 6 2015 2016 2017 LTM 3Q-2018

CAPEX

Angamos

Revenue Credit Metrics CAPEX

238 252 277 329 44 52 46 26 2 5 17 38 284 309 340 392 2015 2016 2017 LTM 3Q-2018

Contracted Spot Other

111 122 105 133 39% 39% 31% 34% 2015 2016 2017 LTM 3Q-2018

EBITDA EBITDA Margin 28

EBITDA and EBITDA Margin

29

6.3x 4.9x 4.1x 4.5x 3.9x 3.5x 4.6x 4.4x 2015 2016 2017 LTM 3Q-2018

Net Debt/EBITDA EBITDA/Financial Expense

115 78 14 14 2015 2016 2017 LTM 3Q-2018

CAPEX

Guacolda

Revenue Credit Metrics CAPEX

438 381 493 506 2015 2016 2017 LTM 3Q-2018

Revenue

122 150 167 145 28% 39% 34% 29% 2015 2016 2017 LTM 3Q-2018

EBITDA EBITDA Margin

SUMMARY OF HISTORICAL FINANCIALS (US$mn)

EBITDA and EBITDA Margin

APPENDIX

Chilean Regulated Power Auctions

4

Year of the Auction 2014 2015 2016 2017 2019 2020 2021 Start of Supply 2016-2019 2019 2021-2022 2024 2025 2026 2027 Tenor 15 20 20 20 20 20 20

13.0 1.2 12.4 2.2

Auction Size (TWh-Year) Auction Launch (Year)

2013 2015 2015-01 2017-01 2018 2019 2020

4.7 3.0 2.8

• Avg. Awarded Pric

ice $94.7/ 7/MWh h (92% % awarded w/o chang nge in law)

• Avg. Awarded Pric

ice $79.9/MWh h

• Avg. Awarded Pric

ice $47.6/MWh h (100% % awarded)

• Avg. Awarded Pric

ice $32.50/MWh (100% awarded) Unco conf nfirm irmed Fig igur ures

31

DISTRIBUTION

PP PPA A AUC UCTION TIONS

2015-01 Auction 2017-01 Auction 2018-01 Auction (Unconfirmed)

ENERGY OFFERED

12,400 GWh per year 2,200 GWh per year 4.650 GWh per year

PPA TENOR

20 years, starting 2021-2022 20 years, starting 2024 20 years, starting 2025

POWER BLOCKS

Daily blocks Daily blocks + seasonal blocks for hydro (new, totaling 600 GWh) Daily blocks Storage Incentives

GUARANTEES

Initial ~$4,000 per GWh (CLF$100) Performance ~$12,000 per GWh (CLF$300) Initial ~$8,000 per GWh (CLF$200) Performance ~$24,000 per GWh (CLF$600) Initial ~$8,000 per GWh (CLF$200) Performance ~$24,000 per GWh (CLF$600)

FINES FOR DELAYS (For new projects, every two milestones delay)

~$200 per GWh (CLF$5) ~$1,200 per GWh (CLF$30) ~$1,200 per GWh (CLF$30)

32

DISTRIBUTION COMPANIES

PPA AUCTIONS

MAIN CHANGES ON TERMS & CONDITIONS

APPENDIX

About The AES Corporation

5

MISSION Improving lives by providing safe, reliable and sustainable energy solutions in every market we serve GLOBAL ACCESS TO Construction expertise and contractors Financing Equipment and fuel suppliers Engineering, consulting and insurance

33,965

GROSS SS MW in operation*

3,930

MW under cons nstruct uctio ion

GENERATION

TENCHNOLOGY

GAS 37% COAL 32% RENEWABLES 27% OIL/DIESEL/PET COKE 4%

$11B $33B

FORTUNE 200

GLOBAL POWER COMPANY

FOUNDED IN 1981

NAMED TO

DOW JONES SUSTAINABILITY INDEX

for North America for the Fourth Year in a Row (2014-2017)

LISTED ON

NYSE

AES SERVES OVER

CUSTOMERS TOTAL ASSETS OWEND & MANAGED TOTAL REVENUES

* 24,104 proportional MW. Proportional MW is equal to gross MW of a generation facility multiplied by AES’ equity ownership percentage in such facility Source: The AES Corporation Fact Sheet as of May 8, 2018, The AES Corporation Financials as of December 31, 2017.

6

UTILITY COMPANIES

+ + 2M 15 COUNTRIES 4

MARKET-ORIENTED STRATEGIC BUSINESS UNITS

SOUTH AMERICA, MCAC, USA & UTILITIES, EURASIA

AES IS ENERGIZED BY A GLOBAL WORKFORCE

34

THE AES CORPORATION

OVERVIEW

Sources: The AES Corporation Fact Sheet as of May 8, 2018, The AES Corporation Financials as of December 31, 2017.

2)

Including AES Gener’s TermoAndes facility located in Argentina. Andes SBU Brazil SBU

We leverage on our relationship with AES in negotiations with suppliers, regulators and creditors, and benefit from their technical expertise, and global best practices in optimizing performance

South America Overview

AES Gener and AES Argentina Generación share the same senior leadership Largest energy producer in Chile, a leading player in Argentina and a major producer in Colombia and Brazil One of the most diversified LatAm generation players in terms of geographical footprint and technology Owns InterAndes transmission line, connecting Chile and Argentina

30% 34% 28% 8%

AES Argentina 3,461 MW + 2 fuel procurement facilities AES Gener 643 MW 1,020 MW 3,400 MW + 52 MW Energy Storage AES Brasil 3,684 MW AES Servicios America Service center in Buenos Aires provides Finance and HR transactional services to AES affiliates Colombia 1,020 MW Chile 3,452 MW Argentina 4,104 MW² Brazil 3,684 MW

12,260 MW

35

THE AES CORPORATION

OVERVIEW

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
• ffer to buy or sell any securities and should not be treated as giving investment advice. No representation or warranty, either express or implied, is provided in relation to

the accuracy, completeness or reliability of the information 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 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. 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. 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

• r 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; (viii) adverse weather conditions (ix) poor geological conditions; and (x) natural disasters, accidents or other unforeseen 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 the Securities Act or the applicable laws of other jurisdiction.

• The information contained 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, the Bolsa Electrónica de Chile— Bolsa de Valores, or Electronic Stock Exchange, and the Bolsa de Corredores—Bolsa de Valores, or the Valparaiso 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 and notices to the Chilean Stock Exchanges. All such reports are available at www.cmfchile.cl and www.aesgener.com.

• All figures are expressed in US$ and rounded to the nearest million, unless indicated otherwise.

CORPORATE

PRESENTATION

3Q-2018