AES Gener Corporate Presentation 1Q-2018 Disclaimer This - - PowerPoint PPT Presentation

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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


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SLIDE 1

AES Gener Corporate Presentation

1Q-2018

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SLIDE 2

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.
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SLIDE 3

IMPROVING LIVES IN

Chile, Colombia AND Argentina

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

AES Gener at a Glance

Leading power generation company controlled by AES Corporation

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

$8.3B $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

  • CONS. DEBT

1Q-2018 Market share based on 1Q-2018 Generation figures

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SLIDE 4

Index

1. Highlights 2. Company Overview 3. Growth Projects 4. Financial Review 5. Appendix - Distribution Companies PPA Auctions 6. Appendix - About The AES Corporation

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SLIDE 5

Highlights

2018 First Quarter

1

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SLIDE 6

Highlights 1

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

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SLIDE 7

Highlights (cont’d) 1

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

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SLIDE 8

Highlights (cont’d)

Largest Energy Producer In Chile

1

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

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SLIDE 9

Highlights (cont’d)

We continue advancing with non-core assets sale process to strengthen the company’s capital structure

1

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

  • wned by AES Gener, not essential to the execution of the

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

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SLIDE 10

Highlights (cont’d)

Alto Maipo

1

 Construction continues moving forward  More than 4,700 workers  12 active work fronts  Overall project progress of 64%  T

  • tal tunnel progress of 52%

 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

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SLIDE 11

Highlights (cont’d)

Alto Maipo

1

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:

  • $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

PR PROJE OJECT CT CA CAPIT PITALIZA ALIZATION TION

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 GEN AES GENER ER CO COMM MMITMEN ITMENTS TS

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

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SLIDE 12

Highlights (cont’d)

Alto Maipo

1

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

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SLIDE 13

Highlights (cont’d)

Alto Maipo

1

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

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SLIDE 14

Company Overview 2

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SLIDE 15

Key Investment Considerations 2

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

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SLIDE 16

Assets Overview

We operate a 5,063 MW diversified portfolio in terms of market and technology

2

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

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SLIDE 17

29% 61% 1% 10%

$1,749mn mn

Regulated Unregulated Spot

Markets Overview 2

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

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SLIDE 18

Ratings System Data Energy Sales Generation by Fuel type S&P A+ 23,752 MW Installed Capacity

+2.46%

National Unregulated Demand Growth (CAGR 2018-2030)

+3.06%

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%

Markets Overview 2

*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

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SLIDE 19

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%

Markets Overview 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 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

+3.10% +3.36%

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%

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SLIDE 20

EBI EBITD TDA Count Countries ries Tec echno hnolog logy Fuel Fuel

Portfolio Overview

We operate a 5,063 MW diversified portfolio in terms of market and technology

2

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

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SLIDE 21

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

Commercial Strategy for Chile

We operate a 5,063 MW diversified portfolio in terms of market and technology

2

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%

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SLIDE 22

Commercial Strategy for Colombia and Argentina

(LTM 1Q-2018 Figures)

2

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

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SLIDE 23

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

Strong Financial Performance

IFRS (LTM 1Q-2018 Figures)

2

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

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SLIDE 24

AES Gener Debt Profile

Total Debt as of March 31, 2018 $3,749 mn

2

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

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SLIDE 25

Angamos

Summary of Historical Financials (US$mn)

2

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

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SLIDE 26

Guacolda

Summary of Historical Financials (US$mn)

2

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

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SLIDE 27

Growth Projects 3

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SLIDE 28

Successful Project Development and Construction

Phase I 2007-2013: 1,677 MW of new capacity

3

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%

  • Extensive experience in project development

and execution on time and within budget

  • 49% increase of installed capacity between

2007 and 2014

  • Total investment of $3bn

28

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SLIDE 29

Successful Project Development and Construction

Phase II 2015-2020: 1,256 MW of new capacity

3

$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

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SLIDE 30

Alto Maipo Project Overview

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

3

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SLIDE 31

Alto Maipo Construction Status

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

3

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SLIDE 32

Alto Maipo March 2017 Restructring

TBM CUTTER HEAD

32

3

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

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SLIDE 33

Alto Maipo Project Capitalization as of Today

TBM CUTTER HEAD

33

3

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

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SLIDE 34

Alto Maipo What Happened after March 2017

Default under financing agreement CNM stopped works Lower Productivity By Strabag

34

TUNNEL BORING MACHINE

3

Worse Than Expected Rock Quality Distribution Inability To Draw Project Finance Debt

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SLIDE 35

Alto Maipo: Key Changes to Mitigate Risks

35

3

CHANGE CHANGE IN IN RISK PR RISK PROFILE OFILE

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

PR PROJECT OJECT CAPIT CAPITALIZ ALIZATION TION

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 AES GENER COM COMMITMENT MITMENTS

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

slide-36
SLIDE 36

Key Objectives Achieved

36

3

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

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SLIDE 37

Summary of May 2018 Restructuring

37

3

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

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SLIDE 38

Summary of May 2018 Restructuring

38

3

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

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SLIDE 39

Financial Review 4

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SLIDE 40

Consolidated Financials 4

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

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SLIDE 41

EBITDA Bridge 4

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

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SLIDE 42

Chile

1Q-2018 EBITDA Increased by $7 mn

4

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%

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SLIDE 43

Colombia

1Q-2018 EBITDA Increased by $5 mn

4

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%

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SLIDE 44

Argentina

1Q-2018 EBITDA Increased by $7 mn

4

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%

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SLIDE 45

Net Income 4

1Q-2018, Attributable to AES Gener (US$ mn)

EBITD TDA Varia ianc nce

Depr preci eciat ation

  • n

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

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SLIDE 46

Cash Flow and Liquidity 4

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

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SLIDE 47

Appendix 5

Chilean Regulated Power Auctions

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SLIDE 48

Distribution Companies PPA Auctions

Last Auctions

5

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

  • Avg. Awarded Pric

ice 94.7 7 $/MW MWh (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 h (100% % awarded) Unco conf nfirm irmed Fig igur ures

48

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SLIDE 49

Distribution Companies PPA Auctions

Main Changes on Terms & Conditions

5

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

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SLIDE 50

Appendix 6

About The AES Corporation

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SLIDE 51

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

The AES Corporation Overview

We are part of The AES Corporation, one of the leading power companies in the world

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

51

6

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SLIDE 52

The AES Corporation Overview

AES has a strong regional presence of 13,010 MW¹ in the region, owning assets in Argentina, Brazil, Chile and Colombia

6

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

  • r

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

  • n players in terms of

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

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SLIDE 53

AES Gener

Corporate Presentation