AES Gener Corporate Presentation
1Q-2018
AES Gener Corporate Presentation 1Q-2018 Disclaimer This - - PowerPoint PPT Presentation
AES Gener Corporate Presentation 1Q-2018 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
AES Gener Corporate Presentation
1Q-2018
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.
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
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
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.
directive may result in a violation of the Securities Act or the applicable laws of other jurisdiction.
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.
“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.
IMPROVING LIVES IN
AES Gener Is Energized By A Regional Workforce Of
+1,500 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
Leading power generation company controlled by AES Corporation
GROSS MW in operation
3,400 1,020 643
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
$8.3B $812M $3.7B $2.3B
RATED
Baa3 / BBB- / BBB- BY
MOODY’S S&P GLOBAL FITCH RATINGS
Market Share
Chile 27% by generation Colombia 5% by generation Argentina 3% by generation
Commercial Business Largely Contracted
EFFICIENT GENERATION CONTRACTED WITH AN AVERAGE LIFE OF 10 YEARS MARKET CAP
AS OF May 17, 2018
EBITDA
LTM 1Q-2018
TOTAL ASSETS
OWNED & MANAGED
1Q-2018 Market share based on 1Q-2018 Generation figures
1. Highlights 2. Company Overview 3. Growth Projects 4. Financial Review 5. Appendix - Distribution Companies PPA Auctions 6. Appendix - About The AES Corporation
2018 First Quarter
6
Record 1Q-2018 EBITDA $208 mn, 10% increase LTM EBITDA $812 mn 70% Net Income growth boosted by improvement across all markets reaching $79 mn Annual Shareholders meeting on April 26th Approved dividends ~$185 mn for 2018 Energia Base tariff step up in Argentina
2018 First Quarter
7
Commitment not to build new coal-fired power plants and develop renewables to reduce carbon intensity of our portfolio Continue securing PPAs with C&I customers Secured green tax pass-through with important customers Closing EPC contract for Chivor life extension Project Colombian regulator drafting framework for long term PPAs for renewables Submitted request for environmental approvals to develop desalination plants adjacent to our Ventanas and Guacolda Plants
2018 First Quarter
Largest Energy Producer In Chile
8
Chile Chile SEN SEN
~19 ~19
TW TWh
AES Gener 27% 27%
AES Gener maintains leading position as largest energy producer in Chile providing 27% of gross generation during 1Q – 2018
We continue advancing with non-core assets sale process to strengthen the company’s capital structure
Electrica Santiago (ESSA) Assets Transmission Assets
Accepted an offer to sell 750MW for $300mn to Generadora Metropolitana Spa (JV between EDF and AME)
Attractive valuation on assets that are not essential to the execution of our long term strategy
Proceeds will be used to prepay debt, strengthen liquidity and growth
Conditions precedent were met. Closing expected in May 2018
AES Gener owns ~1,500 kms of transmission lines, including the Interandes international line
Launched a process to sell regulated transmission assets
long term strategy
Shortlisting binding offers, expected to close during 2H- 2018
750MW in gas/diesel fired assets
Nueva Renca 379MW Renca 100MW Los Vientos 132MW Santa Lidia 139MW
316 kms of transmission line assets to be sold
132 kms under National Trunk System 154 kms under Zonal System 30 kms in Dedicated System
9
Alto Maipo
Construction continues moving forward More than 4,700 workers 12 active work fronts Overall project progress of 64% T
39.4 km of 75.9 km Completion of Las Lajas Cavern and Headrace tunnel
Construction Update Project Works - Las Lajas Cavern
Note: Construction progress as of May 2nd , 2018 10
Alto Maipo
Summary of May 2018 Restructuring
11
CHANGE CHANGE IN IN RISK PR RISK PROFILE OFILE
Lump sum fixed price contract with Strabag, including guaranteed completion dates backed by:
Transfer of Geological and construction risks Strong incentives for early completion COD Las Lajas & Alfalfal II expected in 2020
PR PROJE OJECT CT CA CAPIT PITALIZA ALIZATION TION
Fully funded plan, considering:
year after COD Lenders commitment for US$823 mn, including incremental funding of $135mn Incremental shares to Strabag if certain milestones are met
AES GEN AES GENER ER CO COMM MMITMEN ITMENTS TS
AES Gener will contribute:
disbursements
and for project costs or to prepay debt No additional debt to be issued at AES Gener level
Alto Maipo
Project Capitalization as of Today
12
Financial Debt Equity
619 1,019 346 346 170 +510 Equity Commitments, May 2018 Budget 1,535 Equity Contributed as of April, 2018 1,025 60 Strabag AES Gener MLP 628 628 688 688 135 Debt Commitments May 2018 Budget +135 Debt Commitments March 2017 Restructuring 1,451 1,316 Incremental Commitment Disbursed Undrawn Commitment
Alto Maipo
Key Objectives Achieved
13
CO COMPL MPLET ETE RESE RESET
Significant risk reduction Project recourse to Strabag Guaranteed Completion Strong incentives for early completion
CAPIT CAPITAL AL ST STRUC UCTURE TURE
Committed to strengthen capital structure to maintain Investment Grade ratings No increase in Corporate Debt Equity Commitments funded with cash from operations
ST STRA RATE TEGIC GIC PR PROJECT JECT
Key for strengthening power supply for Santiago Zero emission capacity, greening our Portfolio Alto Maipo along with existing assets creates a 802 MW hydroelectric complex Lasts more than 100 years
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 pass-through provisions STRONG CAPITAL STRUCTURE A successful financing history committed to investment grade rating
15
We operate a 5,063 MW diversified portfolio in terms of market and technology
CHILE (3,400MW) COLOMBIA (1,020 MW) ARGENTINA (643 MW)
Guacolda, 760MW
5 coal units Located in Huasco Start of operations:
1995/1996/2009/2010/2015
Hydro Plants 271MW
4 run of river hydro units
Angamos, 558MW
2 coal units Located in Mejillones Start of operations:
2011
Cochrane, 550MW
2 coal units Located in Mejillones Start of operations:
2016
Andes Solar, 21MW
PV solar Adjacent to Andes substation Start of operations:
2016
Chivor, 1,000MW
10 hydro units Located in Bocaya Start of operations:
1977/1981
Tunjita, 20MW
1 hydro unit Located in Bocaya Start of operations:
2016
Termoandes, 643MW
Combined Cycle Turbines: 2 gas, 1 steam Located in Salta Start of operations:
1999
ENERGY STORAGE (Chile)
Energy Storage 52MW
3 units in Norgener, Angamos and Cochrane
Backup Plants, 79MW
Laguna Verde 66MW Diesel Laja 13MW Biomass
Norgener, 277MW
2 coal units Located in Tocopilla Start of operations:
1995/1997
Ventanas, 884MW
4 coal units Located in Valparaiso Start of operations:
1964/1996/2010/2013
16
29% 61% 1% 10%
$1,749mn mn
Regulated Unregulated Spot
CHILE ($598mn EBITDA) COLOMBIA ($178mn EBITDA) ARGENTINA ($36mn EBITDA) SEN
100%
Hydro
3,733GWh
SIN SAD ADI
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
17 GENERATION ENERGY SALES
91% 1% 0.6% 9% 9%
14,727GWh
Thermal Other Hydro
55% 45%
$453mn
Contract Spot
GENERATION ENERGY SALES GENERATION ENERGY SALES
51% 1% 49%
Contract Spot
$168mn
100%
Thermal
4,567GWh
Ratings System Data Energy Sales Generation by Fuel type S&P A+ 23,752 MW Installed Capacity
National Unregulated Demand Growth (CAGR 2018-2030)
National Regulated Demand Growth (CAGR 2018-2030) Moody’s Aa3 75,094 GWh Generation Fitch A
Regulat ated ed 48% Unregulat lated ed 52% 52%
*Chile Expected Energy Sales Growth (CAGR 2030) source: Fijación De Precios De Nudo De Corto Plazo Informe Técnico Definitivo (January, 2018) LTM 1Q-2018 System Data for Chile
Chile
~18 M inhabitants ~$267B GDP as of 2017
18
69,212 GWh
Thermal 59% 59% Hydro 30% 30% Other 11% 11%
75,094 GWh
Ratings System Data Energy Sales Generation by Fuel type S&P BBB- Moody’s Baa2 Fitch BBB 16,853 MW Installed Capacity SIN Demand Growth (CAGR 2018-2030) 67,039 GWh Generation S&P B+ Moody’s B2 Fitch B 37,186 MW SADI Installed Capacity SADI Demand Growth (CAGR 2016-2030) 136,988 GWh SADI Generation
Therm rmal al 65% Rene newab ables es 2% 2% Hydro ro 29% Nuclear ear 4% 4% Regul ulate ted 69% Unreg egul ulated ated 31% 1%
*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 1Q-2018 System Data for Colombia and Argentina
Colombia
~49 M inhabitants ~$310B GDP as of 2017
Argentina
~44M inhabitants ~$635B GDP as of 2017
19
65,978 GWh 132,612 GWh 67,039 GWh
Therm rmal al 16% Hydro ro 84%
136,988 GWh
Resi sident ntial al 42% Indust ustria rial 29% Come merci rcial al 29%
EBI EBITD TDA Count Countries ries Tec echno hnolog logy Fuel Fuel
We operate a 5,063 MW diversified portfolio in terms of market and technology
20 74% 22% 22% 4% 4% Chile Colombia Argentina
$812mn
67% 20% 20% 13% Chile Colombia Argentina
5,063 MW
74% 26% 26% Thermo Renewable 60% 60% 25% 25% 13% 1% 1% 1% 1% Coal Hydro Gas Diesel Solar/Biomass
5,063 MW 5,063 MW
5,000 10,000 15,000 20,000 25,000 30,000 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 GWh per Year Regulated Unregulated Guacolda
We operate a 5,063 MW diversified portfolio in terms of market and technology
10 year r Avg. Contra tract t Life
Customers
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)
~10 years average life of outstanding contracts
21 Distribution 25% Industrial 10% Mining 65%
(LTM 1Q-2018 Figures)
Colombia Argentina
63% 37%
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
22% 78%
ENERGY SALES Contract Spot
6,239 GWh 4,567 GWh
22
279 53 74 102 235 93 261 261 92 102 471 444 606 248 806 807 2015 2016 2017 LTM 1Q-2018
Equity Contribution Dividends Paid Debt Payment
426 581 591 598 246 172 174 178 19 25 29 36 691 778 793 812 32% 34% 33% 32% 2015 2016 2017 LTM 1Q-2018
Chile Colombia Argentina EBITDA Margin
IFRS (LTM 1Q-2018 Figures)
EBITDA & EBITDA margin Total debt and net debt / EBITDA Total CAPEX Capital Allocation
23
1,788 2,198 2,387 2,388 1,552 1,626 1,353 1,361 3,340 3,824 3,741 3,749 4.4x 4.3x 4.4x 4.3x 2015 2016 2017 LTM 1Q-2018
PF/Non-Recourse Corporate Debt Net Debt/EBITDA
893 479 405 419 109 83 92 85 1,002 562 497 504 2015 2016 2017 LTM 1Q-2018
Construction Maintenance
Total Debt as of March 31, 2018 $3,749 mn
AVERAGE COST 5.5% AVERAGE LIFE 14 years NET DEBT/EBITDA 4.3x (2.3x excluding non recourse debt) CURRENCY 96% denominated in USD RATE 93% at fixed interest rate
Amortization Schedule (US$ mn) Debt Overview Debt by Type
64% 36%
Non-Re Reco cour urse Debt $2,388 mn mn
$3,749mn
24
128 130 132 135 137 144 152 161 175 314 193 2018 2026/2073 46 2025 162 176 2019 22 2020 189 1.269 2021 25 154 2022 31 2023 37 2024 518 303 303 1.787 87 449 449 175 354 354
Reco course Debt $1,361 mn mn
24
Summary of Historical Financials (US$mn)
Revenue EBITDA and EBITDA Margin Credit Metrics CAPEX
25
238 252 277 305 44 52 46 34 2 5 17 24 284 309 340 363 2015 2016 2017 LTM 1Q-2018
Contracted Spot Other
111 122 105 117 39% 39% 31% 32% 2015 2016 2017 LTM 1Q-2018
EBITDA EBITDA Margin
6.9x 6.2x 7.3x 6.6x 2.5x 2.8x 2.4x 2.7x 2015 2016 2017 LTM 1Q-2018
Net Debt/EBITDA EBITDA/Financial Expense
16 4 6 7 2015 2016 2017 LTM 1Q-2018
CAPEX
Summary of Historical Financials (US$mn)
Revenue EBITDA and EBITDA Margin Credit Metrics CAPEX
26
438 381 493 494 2015 2016 2017 LTM 1Q-2018
Revenue
122 150 167 167 28% 39% 34% 34% 2015 2016 2017 LTM 1Q-2018
EBITDA EBITDA Margin
6.3x 4.9x 4.1x 3.8x 3.9x 3.5x 4.6x 4.7x 2015 2016 2017 LTM 1Q-2018
Net Debt/EBITDA EBITDA/Financial Expense
115 78 14 12 2015 2016 2017 LTM 1Q-2018
CAPEX
Phase I 2007-2013: 1,677 MW of new capacity
BESS Angamos I BESS Norgener 2 2
12 MW Energy Storage
Start Date: Nov. 2009
20 MW Energy Storage
Start Date: Dec. 2011
Guacolda III Guacolda IV 4 4
152 MW Coal
Start Date: Jul. 2009
152 MW Coal
Start Date: Mar. 2010
Angamos I & II 1
558 MW (2 units) Coal
Start Date: Apr./Oct. 2011
1 2 Los Vientos 3
132 MW Diesel
Start Date: Jan. 2007
4 Ventanas III Ventanas IV 6 7 Santa Lidia 5
139 MW Diesel
Start Date: Apr. 2009
272 MW Coal
Start Date: Feb. 2010
272 MW Coal
Start Date: Mar. 2013
3 6 7 5 Antofagasta Santiago
3,417 5,094 2007 2014
+49%
and execution on time and within budget
2007 and 2014
28
Phase II 2015-2020: 1,256 MW of new capacity
$4bn investment, fully funded +21%
Guacolda V – 152 MW Angamos Desalinization Tunjita – 20 MW Andes Solar – 21 MW Cochrane – 532 MW Alto Maipo – 531 MW
Gu Guacolda V V - COMP COMPLETED
Construction Progress
152 MW Coal Start Date: Dec. 2015
Ang Angamo mos Des Desal - COMP COMPLETED
Desalination plant
And Andes s Solar - COMP COMPLETED
21 MW Solar Start Date: May 2016
Tunjita - COMP COMPLETED
20 MW Hydro Start Date: Jun 2016
Coc Cochrane - COMP COMPLETED
550 MW (2 units) Coal Start Date: Oct 2016
Al Alto Maipo
531 MW Run of River Hydro Progress: 64%
152 573 531 6.326 5.222 5.070 2015 5.222 2016 5.795 2020 5.795
29
531 MW run of river hydro located in Santiago, Chile
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%
30
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 2km
As of May 2018 Overall Project completion: 64% Total tunnel progres is ~39kms 12 work fronts Las Lajas Cavern and Headrace tunnel completed in May
Tunnel Boring Machine (TBM) Drill & Blast
31
TBM CUTTER HEAD
32
836 2,053 2,513 171 117
Original Equity Total Sources Original Debt
1,217 12
Strabag
Total Sources Prior to Restructuring
61
AES Gener
MLP
99
Additional Debt Other Financing Sources
+460mn
TBM CUTTER HEAD
33
33
Financial Debt Equity
619 1,019 346 346 170 1,025 60 Equity Contributed as of April, 2018 Equity Commitments, May 2018 Budget 1,535 +510 AES Gener MLP Strabag 628 628 688 688 135 1,451 Debt Commitments March 2017 Restructuring Debt Commitments May 2018 Budget 1,316 +135 Undrawn Commitment Disbursed Incremental Commitment
Default under financing agreement CNM stopped works Lower Productivity By Strabag
34
TUNNEL BORING MACHINE
Worse Than Expected Rock Quality Distribution Inability To Draw Project Finance Debt
35
CHANGE CHANGE IN IN RISK PR RISK PROFILE OFILE
Lump sum fixed price contract with Strabag, including guaranteed completion dates backed by:
Transfer of Geological and construction risks Strong incentives for early completion COD Las Lajas & Alfalfal II expected in 2020
PR PROJECT OJECT CAPIT CAPITALIZ ALIZATION TION
Fully funded plan, considering:
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 AES GENER COM COMMITMENT MITMENTS
AES Gener will contribute:
disbursements
and for project costs or to prepay debt No additional debt to be issued at AES Gener level
36
COMPLE COMPLETE TE RESE RESET
Significant risk reduction Project recourse to Strabag Guaranteed Completion Strong incentives for early completion
CA CAPIT PITAL AL ST STRUCTURE UCTURE
Committed to strengthen capital structure to maintain Investment Grade ratings No increase in Corporate Debt Equity Commitments funded with cash from operations
ST STRA RATE TEGI GIC PR PROJE OJECT CT
Key for strengthening power supply for Santiago Zero emission capacity, greening our Portfolio Alto Maipo along with existing assets creates a 802 MW hydroelectric complex Lasts more than 100 years
37
Compared to March 2017 Budget May May 2018 2018 Rest estructur ucturing ing Mar arch 2017 Budget 2017 Budget PROJECT PROGRESS
64% 50%
TUNNELING PROGRESS
39.4 km 23 km
EQUITY COMMITMENTS
$1,535mn $1,105mn
DEBT COMMITMENTS
$1,451mn $1,316mn
PROJECT STRUCTURE
Recourse to Strabag
38
Compared to March 2017 Budget May May 2018 2018 Rest estructur ucturing ing Mar arch 2017 Budget 2017 Budget CONSTRUCTION CONTRACT
Lump-Sum, Fixed Price Contract Bill of Quantity
GUARANTEED COMPLETION DATE
Yes No
PARENT COMPLETION GUARANTEE
Yes from Strabag SE (BBB) No
LETTER OF CREDIT
$300mn $167mn
SUPPLIER FINANCING
$392 mn payable in 20 years $31mn payable first
Key Finan ancials cials (US$ mn mn) 1Q 1Q -2018 1Q 1Q -2017 Var. . (%) Operating Revenue 656 557 18% Gross Profit 170 146 16% EBITDA 208 189 10% EBITDA Margin 32% 34% Net Income 79 47 70%
EBITDA BY MARKET First Quarter
2018 First Quarter
40
73% 76% 22% 22% 22% 22% 5% 5%
189 1Q 1Q-2018 18
2% 2%
1Q 1Q-2017 17 208 208
Chile Colombia Argentina
7.1 4.9 6.9
1Q 1Q - 2017 1Q 1Q - 2018
2018 First Quarter
First Quarter EBITDA A Increas ased ed 10%, $19 mn mn 189 208 208
41
1Q-2018 EBITDA Increased by $7 mn
Began the supply of additional PPAs Reached agreements for green tax pass-through, reducing its impact Nueva Renca maintenance activities
EBITDA Variation (1Q-2018) Electricity Revenue Breakdown (1Q-2018)
Regula ulated Customers 26% 26% Spot 7% 7% Unregula ulated Customers 67%
$438mn
Main Drivers of 1Q-2018
42
2017 7,1 1Q Var 2018
144 151
+5%
1Q-2018 EBITDA Increased by $5 mn
Higher contract revenue at higher prices, partially offset by lower physical sales Favorable impact from COP appreciation Lower Ancillary Services Sales
EBITDA Variation (1Q-2018) Electricity Revenue Breakdown (1Q-2018)
Cont ntract ct Sales 65% 65% Spot 35% 35%
$96mn
Main Drivers of 1Q-2018
43
4.9 2017 1Q Var 2018
41 41 46 46
+12%
1Q-2018 EBITDA Increased by $7 mn
Increase in capacity prices in the Energía Base Market (Resolution 19/2017) Higher prices and volume with Energía Plus customers Higher generation as a result of lower maintenance activities
EBITDA Variation (1Q-2018) Electricity Revenue Breakdown (1Q-2018)
Cont ntract ct Sales 46% Energía ía Base 54%
$41mn
Main Drivers of 1Q-2018
44
6.9 2017 1Q Var 2018
4 11 11
+163% 3%
1Q-2018, Attributable to AES Gener (US$ mn)
EBITD TDA Varia ianc nce
Depr preci eciat ation
Interest Exp xpense nse Non- Cont ntrolli ling ng Interest FX FX Gains ns/ Losses Inco come Tax
45
Equit uity Earning ings Other Non- Operatin ing Varia ianc nces
47 47 79 79 18.9 18.8 6.4 6.4 2.0 2.0 1Q 1Q-2017 17 1.8 0.6 0.6 0.7 0.7 1.1 1Q 1Q-2018 18
1Q-2018 (US$ mn)
Quarterly Cash Flow Liquidity as of March 31, 2018
Operatin ing CF CF Investin ing CF CF Fina nancing ncing CF CF FX FX Varia iatio ion Undr ndrawn n Committ itted Facil ilitie ies $250 mn mn Cash and Cash Equiv uivale lent nts $235 mn mn
$485mn
46
276 235 235
48% 52% 52% 84 84 126 2
Dec-17 17
3
Mar-18 18
Chilean Regulated Power Auctions
Last Auctions
Year of the Auction 2014 2015 2016 2017 2018 2019 2020 Start of Supply 2016-2019 2019 2021-2022 2024 2023 2024 2026 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 2017 2018 2019
7.0 7.0 4.5
ice 94.7 7 $/MW MWh (92% % awarded w/o chang nge in law)
ice 79.9 $/MWh h
ice 47.6 $/MWh h (100% % awarded)
ice 32.50 $/MWh h (100% % awarded) Unco conf nfirm irmed Fig igur ures
48
Main Changes on Terms & Conditions
2015-01 Auction 2017-01 Auction Energy Offered 12,400 GWh per year 2,200 GWh per year PPA Tenor 20 years, starting 2021-2022 20 years, starting 2024 Power Blocks Daily blocks Daily blocks + seasonal blocks for hydro (new, totaling 600 GWh) 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) Fines for Delays (for new projects, every two milestones delay) ~$200 per GWh (CLF$5) ~$1,200 per GWh (CLF$30)
49
About The AES Corporation
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
We are part of The AES Corporation, one of the leading power companies in the world
GROSS SS MW in operation*
MW under cons nstruct uctio ion
GENERATION
TENCHNOLOGY
GAS 37% COAL 32% RENEWABLES 27% OIL/DIESEL/PET COKE 4%
GLOBAL POWER COMPANY
NAMED TO
for North America for the Fourth Year in a Row (2014-2017)
LISTED ON
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.
UTILITY COMPANIES
MARKET-ORIENTED STRATEGIC BUSINESS UNITS
SOUTH AMERICA, MCAC, USA & UTILITIES, EURASIA
AES IS ENERGIZED BY A GLOBAL WORKFORCE
51
AES has a strong regional presence of 13,010 MW¹ in the region, owning assets in Argentina, Brazil, Chile and Colombia
Sources: The AES Corporation Fact Sheet as of May 8, 2018, The AES Corporation Financials as of December 31, 2017. 1) Including Electrica Santiago plants: Nueva Renca, Renca, Los Vientos and Santa Lidia. AES Gener announced the sale of this business in December 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 me senior
leadersh ship Largest energy producer in Chile, a leading player in Argentina and a major producer in Colombi bia and Brazil One of the most diversi sified LatAm tAm generation
geographical footprint and technology Owns InterAn rAnde des s transmission line, connecting Chile and Argentina
28% 32% 32% 8%
AES Argentina 3,461 MW + 2 fuel procurement facilities AES Gener 643 MW 1,020 MW 4,150 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 4,202 MW Argentina 4,104 MW² Brazil 3,684 MW 13,010 MW
52
Corporate Presentation