AES Gener S.A. September 2009 1 Agenda 1. Gener Overview 2. Market - - PowerPoint PPT Presentation

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AES Gener S.A.

September 2009

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Agenda

• 1. Gener Overview
• 2. Market Presence
• 3. Expansion Plan
• 4. Summary

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• 1. Gener Overview

Gener Overview

2nd largest electricity generator in Chile Important hydroelectric generator in Colombia 3,850 MW of installed capacity Diversified in terms of geography, technology and energy sources Extensive experience in development, construction and operation Focused on operating excellence and safety Commercial strategy maximizes cash flows Strong financial indicators Market presence and know-how, founded in 1981 Long-term relationships with clients, contractors and financial entities Long-term power purchase agreements ensure sustainable growth 1,207 MW in construction

Proven electric generator Well positioned to capitalize on industry growth Proven business model with strong fundamentals

5 Business Activities

Installed capacity: 3,850 MW Chile:

• 2,850 MW in operation
• 1,207 MW in construction

Colombia: 1,000 MW

• Transmission:

1,475 Km. Fuel sales Operating assets near major consumption centers

Asset Portfolio

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Note: Since September 2007, TermoAndes has been partially connected to the Argentine system (SADI).

Business Structure

AES GENER

SIC (1,930 MW) SING (920 MW) COLOMBIA (1,000 MW)

OPERATING ASSETS ELECTRICA SANTIAGO GUACOLDA CHIVOR 29% hydro 41% coal 30% diesel (946 MW) 79% CCGT 21% diesel (479 MW) coal (456 MW) hydro-dam (1,000 MW) ENERGIA VERDE 49% biomass 51% diesel (49 MW) NUEVA VENTANAS coal (267 MW) CAMPICHE coal (270 MW) GUACOLDA IV coal (152 MW) ANGAMOS I & II coal (518 MW)

Existing capacity: 3,850 MW Capacity under construction: 1,207 MW Future capacity: 5,057 MW

NORGENER coal (277 MW) CCGT (643 MW) 100% 100% 90% 50% 100% 100% 100%

TERMOANDES

Business Environment Provides Long Term Stability and Growth Potential

• Electricity law enacted in 1982, fundamentally unchanged
• “Short Law II” (2005) incentivized generation investment
• Generation companies have recorded solid financial results
• Continued growth based on current capacity shortage and long term expected

demand

• Sound monetary policy with central bank reserves representing 17% of GDP
• Developed capital markets with private pension investments of more than $22

billion

• Low per capita electricity consumption combined with steady industry growth

provides long term upside

• Reliability charge methodology in 2006 assures stable cash flow for capital

recovery

Chile provides stable environment (A+, Aa2) Pro-investment and transparent regulatory framework in Chile Chilean electric sector resilient with upside Colombia provides favorable environment (BB+ / Ba1)

Ownership Structure

AES Corp. owns 71% of Gener AES has sold approximately 27% in secondary offerings since 2006 AES participated in February 2009 capital increase maintaining 71%

• wnership

Shareholders as of August 31, 2009 Inversiones Cachagua Ltda. 70.7% Others 13.1% Pension Funds (AFPs) 16.2%

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5 2 3 3 3 3 2 2 3 5 2 2 4 4 8 2 5 2 4 6 2 2 3 6 2 2 4 3 4 2 4 4 2 2 2 5 2 3 3 3 3 2 2 3 5 2 2 4 4 8 2 5 2 4 6 2 2 3 6 2 2 4 3 4 2 4 4 2 2 2

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AES Network Provides Access to Efficient & Economic Global Sourcing

AES Global Footprint

132 generation plants with 38,000 MW gross installed capacity 1,274 MW wind generation in the United States 14 distribution companies with annual sales of 78,000 GWh

AES network provides Gener with economic advantage through access to:

Dependable and reliable construction contractors Equipment & fuel suppliers Engineering firms, consultants and insurance services International commercial bank markets, specifically project finance AES construction and financial expertise

In Operation Under Construction

Note: Numbers in circles indicate number of facilities

In Operation Under Construction

Note: Numbers in circles indicate number of facilities

In Operation Under Construction

Note: Numbers in circles indicate number of facilities

Solid Financial Indicators

Notes:

• EBITDA = Gross Profit + Administrative Expenses + Depreciation + Minor Adjustments

2008, 1H08, 1H09: Based on IFRS Financial Statements 2005-2007: Based on CHGAAP Financial Statements. 12 Month Average FX

EBITDA

277 331 270 394 196 302

• 50

100 150 200 250 300 350 400 2005 2006 2007 2008 1H08 1H09

US$ Million

Total Debt

809 853 930 1,155 1,072 1,524

• 250

500 750 1,000 1,250 1,500 2005 2006 2007 2008 1H08 1H09

US$ Million

Total Debt / EBITDA

3.0x 3.5x 2.9x 3.4x 2.6x 2.9x

• 1.0

2.0 3.0 4.0 5.0 2005 2006 2007 2008 1H08 1H09 Times

Interest Coverage

6.2x 4.3x 4.5x 4.0x 5.0x 3.4x

• 1.0

2.0 3.0 4.0 5.0 6.0 7.0 2005 2006 2007 2008 1H08 1H09 Times

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• 2. Market Presence

SING 42% SIC 19% SIN 40%

Gener’s Diversified Portfolio Mitigates Risk

Hydro 33% Coal 29% Gas 26% Diesel 11% Biomass 1%

• Generation assets diversified by market and energy source
• Diversification reduces earnings and cash flow volatility

2008 EBITDA by Market

SIC 50% SING 24% SIN 26%

Installed Capacity by Market Installed Capacity by Energy Source SIC: Central Interconnected System SING: Greater Northern Interconnected System SIN: Colombian Interconnected System

Coal 44% Diesel 21% Gas/Diesel 20% Hydro 14% Biomass 1%

• Installed capacity of 1,930 MW1 represents 19% of the SIC
• Generation portfolio is complementary to the system
• Base-load and Back-up thermal plants
• Run-of-river hydro plants in the Santiago metropolitan area
• During 2008, the Gener Group generated 9,981 GWh, representing 24% of the SIC’s total generation

(1) Includes 100% of Eléctrica Santiago and Guacolda.

Gener: Installed Capacity

Gener in the SIC

Gas/Diesel 70% Coal 30%

• Installed capacity of 920 MW1 represents 26% of the SING
• TermoAndes has been connected to both the SING and Argentine system since September 2007
• Thermoelectric generation portfolio diversified between coal and gas/diesel
• During 2008, the Gener Group generated 3,268 GWh, representing 23% of the SING’s total generation

(1) TermoAndes has been partially connected to the Argentine system (SADI) since September 2007

Gener in the SING

Gener: Installed Capacity

• AES Chivor owns a 1,000 MW dam-based hydroelectric plant which represents 7% of

Colombia’s total installed capacity

• Chivor’s hydrology is countercyclical with he rest of the country
• During 2008, Chivor generated 3,760 GWh, representing 7% of Colombia’s total generation

Gener in Colombia

Contracts 43% Spot 49% Others 8%

Commercial Strategy Reduces Earnings Volatility

Spot 14% Distcos w/o contracts 11% Regulated 50% Unregulated 25%

Chile Colombia

Note: Based on 2008 physical sales

Execution of long term contracts for a significant portion of firm energy from efficient

generation plants (hydro, coal)

Reservation of less efficient plants for spot market sales Early stage project identification and development, using market presence and know-how

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• 3. Expansion Plan

Projects needed to resolve energy crisis in Chile Ambitious expansion plan under way

• 3 units completed and currently operating (Los Vientos, Santa Lidia and Guacolda III*)
• 6 units in construction
• 4 units with environmental approval and 2 units in environmental approval process

New projects focus on strengthening reliable generation portfolio, utilizing experience and

know-how in thermoelectric and hydroelectric generation

Project structure:

Environmental approvals Turn-key, lump sum, fixed price

EPC contracts

Long-term power purchase

agreements including price indexation mechanisms with high quality offtakers

Structured financing arrangements

Growth Strategy Capitalizes on Market Opportunities

*Note: Plants completed: Los Vientos: 125 MW (diesel) Santa Lidia : 125 MW (diesel) Guacolda III: 152 MW (coal)

Projects in Construction

BESS NUEVA VENTANAS GUACOLDA IV ANGAMOS I CAMPICHE ANGAMOS II 12 MW / Battery Storage 267 MW / coal 152 MW / coal 259 MW / coal 270 MW / coal 259 MW / coal October 2009 January 2010 June 2010 April 2011 Temporarily suspended* October 2011 SING SIC SIC SING SIC SING

* Note: The Campiche project has been temporarily suspended, based on Supreme Court decision which revoked the project’s environmental permit. Gener plans to resume construction after obtaining a new environmental permit.

Projects in Development

LOS ROBLES ALTO MAIPO COCHRANE 750 MW / coal (2 units) 530 MW / run-of-river (2 units) 560 MW / coal (2 units) Environmental approval

• btained in 2008

Environmental approval

• btained in 2009

Environmental impact study obtained in 2009 SIC SIC SING

Staged Capacity Additions

1,000 2,000 3,000 4,000 5,000 6,000 7,000 2008 2009 2010 2011 MW Current Capacity Santa Lidia Guacolda III Nueva Ventanas Guacolda IV Angamos I & II

3,850 4,269 4,787 3,559

Successful Financing Plan

Equity offerings

• June 2008
• US$ 272 million
• 99% subscription by existing shareholders
• February 2009
• US$ 246 million
• 99% subscription by existing shareholders

Chilean bonds

• Issuance of US$ 204 million in December 2007 (approx. 40% used for project equity)
• Issuance of US$ 196 million in April 2009 (used for investments)

Project finance

• Nueva Ventanas:
• US$ 440 million in June 2007
• Angamos:
• US$ 989 million in October 2008

Nueva Ventanas & Angamos Awarded 2007 & 2008 Project Finance Deals of the Year

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• 4. Summary

• Global presence and proven experience of primary

shareholder

• Chile and Colombia provide stable and pro-

investment business environment

• Solid position in three major markets
• Geographical and technological diversification
• Commercial policy reduces earnings volatility
• Experience and know-how to capitalize on sector

growth opportunities

• Attractive expansion project in construction and

development

• Successful funding strategy and broad access to

capital market

Summary