AES GENER 2Q 2017 EARNINGS CALL August 8 th , 2017 Disclaimer - PowerPoint PPT Presentation

AES GENER 2Q 2017 EARNINGS CALL August 8 th , 2017

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. 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 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; (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 Superintendencia de Valores y Seguros, the Chilean Superintendency of Securities and  Insurance, or “SVS.” 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 curren tly required to file quarterly and annual reports in Spanish and issue hechos esenciales o relevantes (notices of essential or material events) to the SVS, and provide copies of such reports and notices to the Chilean Stock Exchanges. All such reports are available at www.svs.cl and www.aesgener.com. 2

Agenda Second Quarter 2017 Earnings Call  Highlights  Financial Review  Key Takeaways  Q&A 3

HIGHLIGHTS 4

Highlights Second Quarter of 2017  Highest LTM EBITDA of all time: US$ 813 mn  Year-to-Date EBITDA of US$ 380 mn, +10% increase over 2016  Second quarter EBITDA of 191 mn, +2% higher than 2016  Cochrane Project fully operational and contracted since October 2016  Nueva Renca continues contributing margin through the tolling agreements. Secured renewal for 2018  Continued enhancing Investment Grade Credit Profile by repaying Corporate Debt  US$ 132 mn prepaid since December 2016  In April, the Company declared dividends of US$ 261 mn payable in 2017, equal to 100% of Net Income in 2016. US$ 146 mn distributed in May 2017 5

Highlights (cont’d) Second Quarter of 2017  Efficient generation fully contracted with no relevant Chile PPA Portfolio maturities until 2022  Guacolda re-contracted ~1,200 GWh with industrial Industrial 9% customers, with 3-7 year tenors Contract Mining  Looking forward to present competitive bids in the upcoming avg. life: 64% 11 years Discos 27% regulated action (October 2017)  We continue developing distributed energy solutions  4 contracts signed with new industrial customers 6

Highlights (cont’d) Largest Energy Producer in Chile  AES Gener maintains leading position as largest energy producer in Chile providing 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 7

Highlights (cont’d) Successful growth strategy  Successful completion of 2,386 MW across 11 projects over the past 10 years  Strong cash flow generation supported by operational projects and long-term PPAs  Alto Maipo is the last project remaining in our second phase of expansion  Gener contributions to date reached US$ 536 mn with US$ 83 mn left to be contributed Installed Capacity Strong EBITDA Growth +70% +146% 5,813 813 3,427 330 2006 2Q-2017 LTM 2006 2017 8

Highlights (cont’d) Alto Maipo Recent Events  Overall Progress ~54.5%. Tunneling progress ~39% (28.1 of 71.8 kms)  CNM failed to fulfill its obligations under the tunneling contract and as a result, Alto Maipo terminated the contract for CNM’s default  Alto Maipo drew on LCs for US$ 73 mn posted by CNM following the contract termination La Engorda intake  Alto Maipo and CNM entered in arbitration process. The tribunal should be fully established in 1-2 months  Alto Maipo took over the construction works previously assigned to CNM in order to continue progressing with the construction  Seeking replacement contractor to take over CNM’s portion of works  Alto Maipo project finance debt is in technical default due to CNM contract termination 9

Highlights (cont’d) Alto Maipo Recent Events  In discussion with non-recourse lenders and other construction contractors to asses the viability of the project  Important milestone was achieved, completing the soil tunnel  AES Gener released a Material Fact stating the current situation  Rating Agencies (Fitch and Moody’s) changed their outlook Tunneling works Agency Rating Outlook BBB- Negative Watch Baa3 Negative Soil tunnel completion BBB- Stable 10

FINANCIAL REVIEW 11

Consolidated Financials YTD Second Quarter Key Financials (US$ mn) 2017 2016 Var. (%) 2017 2016 Var. (%) Operating Revenues 1,156 1,099 5% 599 544 10% Gross Profit 291 272 7% 145 150 -4% EBITDA 380 345 10% 191 187 2% EBITDA Margin 33% 31% 32% 34% Net Income 88 108 -19% 41 67 -38% EBITDA BY MARKET Second Quarter Year to date 2017 380 2017 191 36% 40% 22% 33% 42% 23% 2% 2% 2016 50% 31% 16% 345 2016 47% 28% 23% 187 3% 2% SIC SING SIN SADI 12

EBITDA Bridge Second Quarter Year-to-Date EBITDA Increased 2%, US$4 mn EBITDA Increased 10%, US$36 mn 380 29 3 344 191 187 46 2 1 36 29 24 2016 SIC SING SADI SIN 2017 2016 SIC SING SADI SIN 2017 13

SIC Market YTD EBITDA Decreased by US$ 36 mn  Lower efficient generation and higher coal costs due to indexation lag  Accrual of green taxes in 2017  Lower margin from Nueva Renca EBITDA Variation (YTD) Electricity Revenue Breakdown (YTD) -21% Spot Sales Regulated 3% Customers 171 62% 12 24 135 87 US$440 mn 63 84 72 Unregulated Customers 35% 2016 1Q Var 2Q Var 2017 2Q 1Q 14

SING Market YTD EBITDA Increased by US$ 46 mn  Cochrane and Andes Solar started operations  Accrual of Green taxes in 2017  Lower margin in old Norgener contracts EBITDA Variation (YTD) Electricity Revenue Breakdown (YTD) +43% 152 Spot Sales 23% 29 106 17 80 US$382 mn 51 Unregulated 72 Customers 55 77% 2016 1Q Var 2Q Var 2017 2Q 1Q 15

SIN Market YTD EBITDA Increased by US$ 29 mn  Higher contract sales  Lower costs in energy purchases  Lower spot sales EBITDA Variation (YTD) Electricity Revenue Breakdown (YTD) +52% Spot Sales 84 19% 1 28 55 43 US$145 mn 42 41 Contract Sales 13 81% 2016 1Q Var 2Q Var 2017 2Q 1Q 16