CORPORATE PRESENTATION Larrain Vial 14 th Annual Andean Conference - - PowerPoint PPT Presentation

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CORPORATE PRESENTATION Larrain Vial 14 th Annual Andean Conference - - PowerPoint PPT Presentation

CORPORATE PRESENTATION Larrain Vial 14 th Annual Andean Conference August 31 - September 4, 2020 LEADING GENERATION COMPANY IN LATIN AMERICA AES GENER AT A GLANCE 5,295MW 2.3GW 221MW Of installed capacity (1) Of green capacity Added since


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SLIDE 1

PRESENTATION

Larrain Vial 14th Annual Andean Conference

August 31 - September 4, 2020

CORPORATE

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SLIDE 2

221MW

Added since launch of Greentegra

2.3GW

Of green capacity to be added by 2024 (2)

5,295MW

Of installed capacity(1) Leading Energy Producer in Chile

~10 years

Average life of PPAs(4) Providing Stable Cash Flows

66.7%

Controlled by

The AES Corporation

Member of Chile and MILA Indices LEADING GENERATION COMPANY IN LATIN AMERICA

AES GENER

AT A GLANCE Baa3/BBB-/BBB-

Stable Outlook (Moody’s/S&P/Fitch)

4.1x (3)

Net Debt/LTM 2Q-20 EBITDA

$827mm

LTM 2Q-20 EBITDA Launched Greentegra Strategy to incorporate Renewables leveraging on existing commercial relationships

(1) Includes 5,233MW of Power plants (including 764MW of Guacolda, which is not consolidated in EBITDA) and 62MW of Battery Energy Storage System as of 19/8/2020. (2)Includes Operational assets, projects under construction, and projects under development. (3) Consolidated metric, including equity credit (4)Average remaining life on PPAs in Chile as of 30/06/2020.

2

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SLIDE 3

LEADING GENERATION COMPANY IN LATIN AMERICA

AES GENER

EXECUTIVE SUMMARY

3

2018 2019 2020-YTD

RECONTRACTING 2.7TWh 3.8TWh 1.8TWh DECARBONIZATION

Agreement Signed for Ventanas 1 & 2

RENEWABLE GROWTH

21MW Solar 110MW Wind 70MW Solar 10MW Energy Storage

ALTO MAIPO

EPC Contract Restucturing

3.1km

To begin operations

FINANCING PLAN

ESSA & CTNG Assets Sale Hybrid Bond Green Hybrid Bond Cochrane PF Restructuring Capital Increase Approved Coal Monetization

LEVERAGE RATIOS

3.0x 4.0x 4.2x 1

Colombian Auctions

C&I Customers

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SLIDE 4

LEADING GENERATION COMPANY IN LATIN AMERICA

AES GENER

KEY INVESTMENT CONSIDERATIONS

1

RESILIENT BUSINESS

2

MARKET LEADER POSITION

3

DIVERSIFIED PORTFOLIO

4

HIGH QUALITY LONG TERM PPAs

5

GREENTEGRA TRANSFORMATIONAL STRATEGY

6

ROBUST CAPITAL STRUCTURE & STRONG FINANCIALS

4

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SLIDE 5

BHP SETTLEMENT UPDATE

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SLIDE 6

6

BHP SETTLEMENT UPDATE

ANGAMOS

BACKGROUND

2020 2021 2026 2029 2037

PPAs

558MW Coal Plant (2 Units)

340MW - Escondida 90MW - Spence 80MW - TECK

VARIABLE CHARGE

(no margin for Angamos)

FIXED CHARGE

(paid under any circunstancies)

FULLY CONTRACTED ASSET UNDER TOLLING AGREEMENTS

In Operation since 2011

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SLIDE 7

COAL to GREEN → Fixed Charges + Renewable PPA

7

BHP SETTLEMENT UPDATE

ANGAMOS

GREENTEGRA ON-TRACK

558MW Coal Plant (2 Units)

2020 2021 2026 2029 2037

PPAs FULL FLEXIBILITY TO ACCELERATE DECARBONIZATION RENEWABLE TRANSFORMATION PRESERVED VALUE OF LEGACY PPAs

340MW - Escondida 90MW - Spence 80MW - TECK In Operation since 2011

BHP Early Termination FULL PPA VALUE recognition

2042

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SLIDE 8

8

BHP SETTLEMENT UPDATE

ANGAMOS

KEY FOR SYSTEM RELIABILITY

50 100 150 200 250 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000

Daily Average Capacity (MW)

LOW COST OF OPERATION 14% OF SYSTEM COAL GENERATION CRITICAL LOCATION ON THE GRID

June 30th Gross Demand

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SLIDE 9

9

RESOLUTION OF ALL

LEGAL DISP DISPUTES UTES

PPA’s

REMAIN IN PLACE UNTIL

AUGUST 2021

$720mn

PAYMENT

ACCELERATED TO 2020

BHP SETTLEMENT UPDATE

BHP AGREEMENT

TERMINATION PAYMENT ACCELERATED

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SLIDE 10

10

BHP SETTLEMENT UPDATE

USE OF PROCEEDS

FURTHERING GREENTEGRA OBJECTIVES

$367mn

DEBT REDUCTION

ON TOP OF THE

$29mn SCHEDULED

AMORTIZATION

$153mn

TAX PAYMENT

$200mn

GROWTH FUNDING

$720mn

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SLIDE 11

BHP SETTLEMENT UPDATE

USE OF PROCEEDS

GREEN GROWTH FUNDING

$720mn

$2.2bn

$486

AVAILABLE CASH

$392

STRABAG

$500

CAPITAL INCREASE 1Q-2021

$750

THIRD PARTY CAPITAL ALTO MAIPO $72

$200

GROWTH FUNDING

$153

TAX PAYMENT

$367

DEBT REDUCTION

GREENTEGRA

GROWTH FUNDING TO GO

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SLIDE 12

12

BHP SETTLEMENT UPDATE

STRENGTHENING INVESTMENT GRADE

ACCELERATING DEBT REDUCTION

$4.2bn $3.8bn

$367mn

Debt Prepayment

4.1x 3.7x

June 2020 After Debt Prepayment

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SLIDE 13

EBITDA

380 460

840

PRE-TAX INCOME

260 460

720

NET INCOME

189 336

526

BHP SETTLEMENT UPDATE

ESTIMATED FINANCIAL IMPACT

EBITDA & NET INCOME

(US$mn)

2020 2020 2021 2021 TOTAL AL

After MONETIZATION

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SLIDE 14

14

BHP SETTLEMENT UPDATE

ASSET RECOVERABILITY

ASSESSMENT TO BE CONDUCTED IN 3Q-2020

(US$mn)

EARLY TERMINATION TRIGGERS EVALUATION OF ASSET RECOVERABILITY

$747mn

ANGAMOS PP&E BOOK VALUE SUBJECT TO IMPAIRMENT TEST

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SLIDE 15

COVID-19 UPDATE

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SLIDE 16

16

LEADING power producer in Chile + HEALTH & WELLNESS programs Accelerating SUSTAINABLE RECOVERY

SAFETY

OF OUR PEOPLE

RELIABLE

ENERGY SUPPLY WORK ALL

TOGETHER

COVID-19 UPDATE

AES GENER

GUIDING PRINCIPLES

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SLIDE 17

17

100%

  • f Our Plants

OPERATING NORMALLY

+30 days

  • f Fuel Supply

ASSURED

ESSENTIAL

Personnel WORKING ON SITE

COVID-19 UPDATE

OUR OPERATIONS

CONTINUE PROVIDING RELIABLE ENERGY

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SLIDE 18

18

ALTO MAIPO

HYDRO

Progress continuing on all fronts

ENERGY

STORAGE

Virtual Reservoir completed

SOLAR & WIND

PROJECTS

Andes Solar II 70MW already operational Los Olmos and Mesamávida COD expected in 2H-2021

COVID-19 UPDATE

OUR PROJECTS

LIMITED IMPACTS

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SLIDE 19

19

Accounts Receivables ($mn) Days Sales Outstanding (days)

31-Dec-2019 31-Mar-2020 30-Jun-2020 58 8 10 86 5 20 91 9 12 58 8 13 9 14 36 14 11 57 14 12 51 8 9 53 COVID-19 UPDATE

OUR COLLECTIONS

NO MATERIAL DISRUPTIONS IN WORKING CAPITAL

31-Jul-2020

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SLIDE 20

20

$549

mn

$299mn

CASH & CASH EQUIVALENT

54%

$250mn

UNDRAWN COMMITTED CREDIT FACILITIES

46%

COVID-19 UPDATE

OUR LIQUIDITY

STRONG POSITION TO OVERCOME POTENTIAL DISRUPTIONS

As of 30/06/2020

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SLIDE 21

REVENUE

BY MARKET

21

76%

A+/A1

20%

BBB-/Baa2

4%

SD/Ca

96% INVESTMENT GRADE Markets Investment grade profile customers

89%

CHILE

42%

COLOMBIA

2Q-2020

Chile

Vulnerable Household Relief

NO IMPACT

Argentina

Local CPI Indexation

  • $0.7mn

COVID-19 UPDATE

OUR MARKETS

COUNTRY AND COUNTERPARTY RISK EBITDA IMPACT

Regulatory Changes

Based on 2019 Revenues

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SLIDE 22

22

89%

CONTRACTED

HIGHLY CONTRACTED

business with Robust Take or Pay PPAs & Limited Volume Risk

AES Gener Contract Level Contracts with NO volumetric risk

Chile

100% 65%

Colombia

80% 90%

Argentina

23% 0%

DEMAND

Exposure

Regulated System Unregulated System Total System EBITDA Impact ($mn)

  • 9.5%

4.3%

  • 1.5%
  • $4
  • 1.8%
  • 17.2%
  • 7.9%
  • $0.4

10.4%

  • 17.3%
  • 5.7%
  • $1.6

2Q-2020

REVENUE

BY SOURCE

COVID-19 UPDATE

OUR CONTRACTS

DEMAND RISK

Based on 2019 Revenues

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SLIDE 23

23

79%

DOLLAR denominated FULLY DOLLARIZED Revenues in Chile ACTIVE HEDGE STRATEGY in Colombia

FX Δ QoQ CF Impact

Chile

  • 0.2%

$0mn

Colombia

  • 9%

+$3mn

Argentina

  • 10%
  • $0.3mn

CASH FLOW

FX Variation

FIXED COSTS

Local currencies help to offset devaluation

REVENUE

BY CURRENCY

COVID-19 UPDATE

OUR CURRENCIES

FX RISK

Based on 2019 Revenues

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SLIDE 24

24

ACHIEVED so far

$5mn

Non-Essential COST MANAGEMENT

$11mn

COVID-19 UPDATE

OUR DISCRETIONARY COSTS

HELPING MITIGATE POTENTIAL COVID-19 IMPACTS

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SLIDE 25

(*) Preliminary data Source: Coordinador Eléctrico Nacional, XM, CAMMESA. In Argentina Discos considers Residential Demand and Free Customers considers Commercial and Industrial Demand

25

Total System Regulated Customers Unregulated Customers

2.2%

  • 0.2%

1.5% 5.1%

  • 1.5%
  • 2.6%
  • 2.9% -3.0%
  • 8.3%
  • 4.6% -8.2%

4.6% 11.1% 6.9% 5.2% 1.3% Jan Feb Mar Apr May Jun

  • 11.9%

6.6%

  • 10.8%

4.9%

  • 7.5%
  • 0.5%

8.7%

  • 5.4%
  • 1.0%

2.8% 6.6% 10.4%

  • 1.3%
  • 3.2%
  • 23.5%
  • 3.7%

5.4% 9.8%

  • 17.4% -10.8%

Jan Feb Mar Apr May Jun 2.5% 1.2%

  • 7.6%

10.0%

  • 11.0%

5.8% 2.3% 25.1% 4.9% 6.8%

  • 0.3%
  • 18.1%

0.4% 0.2%

  • 20.8%

Jan Feb Mar Apr May

(*)

Jun 0.9% 17.8%

  • -12.9%%

CHILE – COLOMBIA - ARGENTINA

SYSTEM DEMAND EVOLUTION

2020 vs 2019

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SLIDE 26

STRATEGY EXECUTION UPDATE

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SLIDE 27

Transform AES Gener into a LEADING RENEWABLE BUSINESS in South America

GREEN OUR CUSTOMERS REDUCE CARBON INTENSITY STRENGTHEN INVESTMENT GRADE

27

STRATEGY EXECUTION UPDATE

GREENTEGRA

ULTIMATE OBJECTIVES

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SLIDE 28

28

$1.0BN

EBITDA

RENEWABLES NON-RENEWABLES RENEWABLES NON-RENEWABLES NON-RECOURSE DEBT RECOURSE DEBT

52% 66% 69%

GREEN OUR CUSTOMERS REDUCE CARBON INTENSITY STRENGTHEN INVESTMENT GRADE

7.1GW

Installed Capacity

3.4X

Net Debt/ EBITDA

STRATEGY EXECUTION UPDATE

GREENTEGRA

2024 PROFORMA BASED ON CURRENT ACHIEVEMENTS

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SLIDE 29

RENEWABLES

5.8GW

2017

7.1GW

2024

  • 27%

CO2 Intensity

+169%

Renewable Capacity 24%

52%

NON RENEWABLES

29

STRATEGY EXECUTION UPDATE

REDUCING CARBON INTENSITY

SUSTAINABLE PORTFOLIO

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SLIDE 30

30

STRATEGY EXECUTION UPDATE

GREENING OUR CUSTOMERS

SUSTAINABLE EBITDA GROWTH

0.8bn

2017

1.0bn

2024

33%

66%

RENEWABLES NON RENEWABLES

  • $120mn BHP termination
  • PPA roll-off
  • Asset Sales

($0.2bn)

+Wind, Solar & Batteries +Alto Maipo +Greentegra PPAs

+$0.4bn

ENSURING SUSTAINABLE

EARNINGS & DIVIDENDS

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SLIDE 31

NON-RECOURSE DEBT RECOURSE DEBT

4.1X

2017

3.4X

2024 69%

Renewable

EBITDA

Debt

Amortization

64%

36% 31%

Net Debt¹ / EBITDA

31

(1) Includes Hybrid Debt Equity Credit

STRATEGY EXECUTION UPDATE

STRENGTHEN INVESTMENT GRADE

SUSTAINABLE LEVERAGE

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SLIDE 32

PROTECT EXISTING VALUE ENABLE GREEN GROWTH

Delink existing PPAs from coal physical assets New long-term renewable PPAs to support green capacity expansion

32

ALLOW FOR EARLIER COAL PHASE OUT

Coal plants merchant providing reliability to the system

STRATEGY EXECUTION UPDATE

RENEWABLE TRANSFORMATION

ENABLED BY OUR BUSINESS SOLUTIONS

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SLIDE 33

531

MW Alto Maipo

110

MW Los Cururos

178

MW Los Olmos Mesamávida

73

MW Campo Lindo

522

MW Rinconada Casa Eléctrica Apotolorru

21

MW Castilla

80

MW Andes Solar IIa

239

MW Andes Solar IIb San Fernando

320

MW Andes Solar III Andes Solar IV

10

MW Virtual Reservoir 113 MW Andes Solar IIb

106

MW Andes Solar IV

33

131MW 90MW 1,061MW 499MW 522MW

2019 2020 2021 2022 2023

$550mn $570mn $1,175mn $410mn $340mn

CAPEX by year

Executed To Go HYDRO WIND SOLAR BATTERY

STRATEGY EXECUTION UPDATE

2.3GW RENEWABLE CAPACITY

CAPEX & COD TIMELINE

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SLIDE 34

34 34

$518

AVAILABLE CASH

$392

STRABAG

Supplier Finance

$2.2 2.2bn

$500

CAPITAL INCREASE

1Q-2021

$750

THIRD PARTY CAPITAL

(US$mn)

$72

ALTO MAIPO

Project Finance

uses

ALTO MAIPO

Project uses

NCRE GROWTH

STRATEGY EXECUTION UPDATE

GROWTH FUNDING TO GO

SOURCES & USES

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SLIDE 35

500mn

CAPITAL INCREASE

APPROVED

66.7% 16.2% 17.1%

35

STRATEGY EXECUTION UPDATE

RENEWABLE TRANSFORMATION

SUPPORTED BY OUR SHAREHOLDERS

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SLIDE 36

DECARBONIZATION UPDATE COAL RETIREMENT

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SLIDE 37

37

HIBERNATION OF ADDITIONAL UNITS

UNDER EVALUATION BASED ON:

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

Ventanas I

114MW

Operational Strategic Backup Ventanas II

208MW

Operational Strategic Backup ECONOMIC

MERIT & BENEFITS

POWER

SYSTEM STABILITY

COMMERCIAL

AGREEMENT EXECUTION

STRATEGY EXECUTION UPDATE

COAL RETIREMENT

POTENTIAL ACCELERATION OF DECARBONIZATION DATES

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SLIDE 38

GROWTH PROJECTS UPDATE

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SLIDE 39

Hydro Wind Solar Batteries

531 MW 10 MW 10 MW 595 MW 2,352 MW 240 MW 500 MW

UNDER CONSTRUCTION

719MW

CONTRACTED UNDER DEVELOPMENT

1,373MW

UNCONTRACTED UNDER DEVELOPMENT

3,092MW

178 MW 559 MW

IN OPERATION SINCE GREENTEGRA

211MW

91 MW 110 MW

PIPELINE

39 39

219 MW

GROWTH PROJECT UPDATE

5,395 MW RENEWABLE PIPELINE

TO SUPPORT COMMERCIAL AGREEMENTS

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SLIDE 40

POWER HOUSES

INSTALLATION UNDERWAY

531MW

INSTALLED CAPACITY

LARGEST RENEWABLE PROJECT

UNDER CONSTRUCTION IN CHILE

40

COD

2H-2021

40

90%

COMPLETE Project

GROWTH PROJECT UPDATE

ALTO MAIPO

RUN-OF-RIVER HYDRO

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SLIDE 41

3.1km

TO BEGIN GENERATING

1 2

Las Lajas & Alfalfal II

Systems 61km

Volcan

System 14km

41

2.1km

FOR ADDITIONAL WATER

GROWTH PROJECT UPDATE

ALTO MAIPO

RUN-OF-RIVER HYDRO - EXCAVATION PROGRESS

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SLIDE 42

10MW 5HOURS

INSTALLED CAPACITY

COD

MAY

2020

100%

COMPLETE

PROJECT

FULLY

OPERATIONAL

42

INNOVATIVE USE OF BATTERY & HYDRO TECHNOLOGY

GROWTH PROJECT STATUS UPDATE

VIRTUAL RESERVOIR

ENERGY STORAGE

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SLIDE 43

43

21MW

INSTALLED CAPACITY

COLOMBIA’S LARGEST SOLAR SELF-GENERATION PLANT

COD

SEPTEMBER

2019

FULLY

OPERATIONAL

Project Status as of 30/06/2020

100%

COMPLETE

PROJECT

GROWTH PROJECT STATUS UPDATE

CASTILLA

SOLAR

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SLIDE 44

44

59MW

INSTALLED CAPACITY

TO BECOME COLOMBIA’S MOST EFFICIENT SOLAR SELF-GENERATION PLANT

COD

MID

2021

BOT CONTRACT

AWARDED

UNDER

DEVELOPMENT

PROJECT

GROWTH PROJECT STATUS UPDATE

SAN FERNANDO

SOLAR

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SLIDE 45

45

80MW

INSTALLED CAPACITY

BIFACIAL PANELS, CLIMATE CONDITIONS AND GRID PROXIMITY

ENHANCE RECORD CAPACITY FACTOR

COD

STAGED THROUGHOUT

2020

99.6%

70MW

ALREADY IN OPERATION

FINAL STAGES OF

COMMISSIONING UNDERWAY

GROWTH PROJECT UPDATE

ANDES IIa

SOLAR COMPLETE Project

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SLIDE 46

46

180MW +113MW

SOLAR + BATTERY CAPACITY

BIFACIAL PANELS, BATTERIES, CLIMATE CONDITIONS AND GRID PROXIMITY

ENHANCE PROJECT ECONOMICS

COD

2H-2021

UNDER

INCORPORATING

ENERGY STORAGE & MAVERICK TECHNOLOGY

GROWTH PROJECT UPDATE

ANDES IIb

SOLAR

DEVELOPMENT

Project

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SLIDE 47

REVOLUTIONARY TECHNOLOGY

SIMPLER

Minimal site preparation required

FASTER

3x Faster Deployment 2x Less Land required

SMARTER

Streamlined logistics and high shipping density

10MW

AT ANDES SOLAR HUB

BHP SETTLEMENT UPDATE

INNOVATIVE SOLAR

PILOT PROJECT

47

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SLIDE 48

STRATEGIC

LOCATION TO MEET DEMAND

110MW

INSTALLED CAPACITY

ACQUISITION FUNDED WITH GREEN HYBRID BOND

48

ACQUIRED

NOVEMBER 2019

48

$136mn

2019

ASSET

ACQUIRED OPERATIONAL

Project Status as of 30/06/2020

GROWTH PROJECT UPDATE

LOS CURUROS

WIND

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SLIDE 49

EPC CONTRACT

EXECUTED WITH NORDEX

ATTRACTIVE CAPACITY FACTOR WITH RECORD LEVEL HUB HEIGHT

FOR CHILE WIND FARMS

49

COD

2H-2021

49

10%

COMPLETE Projects

GROWTH PROJECT UPDATE

LOS OLMOS & MESAMÁVIDA

WIND

178MW

INSTALLED CAPACITY

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SLIDE 50

LOCATED NEAR

MESAMÁVIDA & LOS OLMOS ENHANCE ECONOMIES OF SCALE

73MW

INSTALLED CAPACITY

UNDER

DEVELOPMENT

PROJECT

COD

2H-2022

50

ATTRACTIVE CAPACITY FACTOR WITH RECORD LEVEL HUB HEIGHT FOR CHILE WIND FARMS

GROWTH PROJECT UPDATE

CAMPO LINDO

WIND

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SLIDE 51

LOCATED IN LA GUAJIRA

KNOWN FOR WORLD CLASS WIND RESOURCE

264MW

INSTALLED CAPACITY

UNDER

DEVELOPMENT

PROJECTS

COD

2023

51

WIND PROJECTS AWARDED LONG-TERM CONTRACTS IN COLOMBIA’S 2019 AUCTIONS

GROWTH PROJECT UPDATE

CASA ELÉCTRICA & APOTOLORRU

WIND

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SLIDE 52

CAPITAL STRUCTURE & FINANCIALS

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SLIDE 53

AES GENER

EBITDA GENERATION

SUPPORTED BY UNIQUE LONG-TERM CONTRACTS

$610mn

$200mn

CONVENTIONAL PPAs

Energy and Capacity

$410mn

TOLLING AGREEMENTS

Energy and Capacity

$827mn

2Q-2020 LTM EBITDA 6% 69%

20%

Argentina

Colombia

Chile

53

12-year

  • Avg. Remaining Life

7-year

  • Avg. Remaining Life
slide-54
SLIDE 54

74% 20% 6% 57% 13% 30% 21% 79%

DIVIERSIFIED

PORTFOLIO

BY GEOGRAPHY, CUSTOMER TYPE AND TECHNOLOGY

EBITDA

$827 mm 27.2 TWh/y 5,295 MW

Argentina Chile Contract Sales Coal Renewables Natural Gas Colombia

CUSTOMERS TECHNOLOGY(1)

Spot LTM 2Q-2020 Figures (1) Includes Battery Energy Storage System (BESS)

54

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SLIDE 55

1,463 1,000 2,759 523 857 1,379 463

NON-RECOURSE DEBT

Hybrid Debt

55

ANGAMOS COCHRANE ALTO MAIPO

4,222 1,463

Consolidated Debt Recourse Debt

AES GENER

DEBT PROFILE

AS OF JUNE 30, 2020

(US$mn)

827 4.1x 497 1.6x

LTM EBITDA Net Debt¹/ EBITDA

184 149 2.7x 5.4x

Not in Operation

(1) Includes Hybrid Debt $500mn Equity Credit

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SLIDE 56

140 42 23 27 32 137 19 1,043 53 105 114 149 134 152 162 1,890

193 147 137 176 166 289 181 2,933 2020 2021 2022 2023 2024 2025 2026 2027/2079

AVERAGE COST AVERAGE LIFE RATE

6.0%

Rate

21

Years

88%

Fixed Rate

56

AES GENER

MATURITY PROFILE

BALANCED AND EXTENDED AMORTIZATION SCHEDULE

(US$mn)

Recourse Non-Recourse

slide-57
SLIDE 57

57

De-risked

ALTO MAIPO 1st GREEN HYBRID BOND

in the Americas

$531mn

NON-STRATEGIC

ASSET SALES

$561mn ~$1.9bn

$500mn

CAPITAL INCREASE

APPROVED

$840mn

BHP SETTLEMENT

REACHED

+

DEBT PREPAYMENT DEBT REFINANCING

CAPITAL STRUCTURE

MILESTONES

ACHIEVED SINCE LAUNCH OF GREENTEGRA IN 2018

slide-58
SLIDE 58

COMMERCIAL STRATEGY HIGH QUALITY LONG TERM PPAs

slide-59
SLIDE 59

CHILE COLOMBIA ARGENTINA

Energy Sales 16,349

GWh

6,520

GWh

4,366

GWh

PPA Tennor

Remaining Average Life

10-year 2 → 5-year 1-year

EBITDA

$610mn $167mn $50mn

HIGHLY CONTRACTED

COMMERCIAL STRATEGY

STABLE CASH FLOWS SUPPORTED BY LONG-TERM CONTRACTS

59 59

Contract Sales Spot Sales

100%

Contracted¹

LTM 2Q-20 Figures (1) Includes Rerouted Energy.

70%

Contracted

18%

Contracted

30%

Spot

82%

Spot

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SLIDE 60

LEADING POSITION

slide-61
SLIDE 61

Third largest hydro plant

CHILE (3,611MW)(1) COLOMBIA (1,041MW) ARGENTINA (643MW)

Leading Energy Producer Most efficient combined cycle

+Only International T-Line connecting

HIGH-QUALITY ASSET PORTFOLIO

LEADING POSITION

IN ATTRACTIVE MARKETS

(1) Includes 62MW of Battery Energy Storage System in operation.

61

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SLIDE 62

DIVERSIFIED PORTFOLIO

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SLIDE 63

74% 20% 6% 57% 13% 30% 21% 79%

DIVIERSIFIED

PORTFOLIO

BY GEOGRAPHY, CUSTOMER TYPE AND TECHNOLOGY

EBITDA

$827 mm 27.2 TWh/y 5,295 MW

Argentina Chile Contract Sales Coal Renewables Natural Gas Colombia

CUSTOMERS TECHNOLOGY(1)

Spot LTM 2Q-2020 Figures (1) Includes Battery Energy Storage System (BESS)

64

slide-64
SLIDE 64

HIGH-QUALITY ASSET PORTFOLIO

LEADING POSITION

DIVERSIFIED BY TECHNOLOGY AND GEOGRAPHY

Capacity as of 19/8/2020 Note: Figures may not add up to total capacity due to rounding

LEADING ENERGY PRODUCER IN CHILE (3,549MW) MAJOR PLAYER IN COLOMBIA (1,041 MW) EFFICIENT OPERATION IN ARGENTINA (643 MW)

Guacolda, 764MW 5 coal units Huasco

COD:1995/1996/2009 2010/2015

Hydro Plants 267MW 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, 92MW PV Solar Atacama Desert

COD: 2016 / 2020

Chivor, 1,000MW 8 hydro units Bocaya

COD: 1977/1982

Tunjita, 20MW 1 hydro unit Bocaya

COD: 2016

Termoandes, 643MW Combined Cycle Turbines: 2 gas, 1 steam Salta

COD: 1999

ENERGY STORAGE (62 MW)

Spinning Reserve Systems Norgener 12MW Angamos 20MW Cochrane 20MW Other Plants, 181MW : Los Cururos 110MW Wind Laguna Verde 58MW Gas/Diesel Laja 13MW Biomass Norgener, 276MW 2 coal units Tocopilla

COD:1995/1997

Ventanas, 861MW 4 coal units Valparaiso

COD:1964/1977/2010/2013

Castilla, 21MW PV Solar Meta

COD: 2019

Virtual Reservoir System Alfalfal I Pilot 10MW

65

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SLIDE 65

FIRM COMMITMENT WITH THE ENVIRONMENT

ACCELERATING A GREENER FUTURE

OVERVIEW OF RENEWABLE GROWTH CAPACITY

WIND (773 MW) SOLAR (639 MW + 219 MW Batteries) RUN OF RIVER HYDRO (531 MW)

Alto Maipo, 531MW San José de Maipo Chile

COD: 2021

Los Olmos, 110MW Mulchén Chile

COD: 2021

Campo Lindo 73MW Los Angeles Chile

COD:2022

Mesamávida, 68MW Los Angeles Chile

COD: 2021

Andes IIa 80MW Atacama Desert Chile

COD: 2020 – 70MW already in operation

Casa Electrica & Apotolorru 264MW La Guajira Colombia

COD: 2023

Projects Under Construction Projects Ready to be built Rinconada 258MW Chile

COD 2023

Andes IIb 180MW + 113MW Battery Atacama Desert Chile COD: 2021 Andes IV 170MW + 106MW Battery Atacama Desert Chile COD 2023

66

Capacity as of 30/6/2020

Andes III 150MW

Atacama Desert Chile COD 2023

San Fernando 59MW Municipality of Castilla La Nueva Colombia COD 2023

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SLIDE 66

APPENDIX COAL to GREEN ENERGY SOLUTION EXAMPLE

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SLIDE 67

TRANSFORMATIONAL STRATEGY

COAL TO GREEN

BUSINESS SOLUTION EXAMPLE

Tolling Agreements Coal to Green

Fixed Charge 50 Fixed Charge 50 Variable Charge 40 Green PPA 40 Green Tax Passthrough 5 Green Tax Passthrough Revenues 95 Revenues 90 Variable Cost 40 Variable Cost Green Tax Cost 5 Green Tax Cost Costs 45 Costs Margin 50 Margin 90

Figures for example purposes only, not meant to be a representation of individual contract details.

68

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SLIDE 68

APPENDIX MARKET INFORMATION

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SLIDE 69

CHILE

COMMERCIAL STRATEGY

STRATEGY BASED ON HIGH QUALITY, LONG-TERM CUSTOMER RELATIONSHIPS

Distribution 26% Non Regulated 74%

10 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 non regulated customers (mining, commercial and industrial)

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

~10 years average remaining life of contracts

  • 5,000

10,000 15,000 20,000

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

GWh/year

70

Figures do not include the early-termination of BHP contracts

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SLIDE 70

COLOMBIA & ARGENTINA

COMMERCIAL

STRATEGY

LTM 2Q-20 Figures (1) Up to 306MW of 643MW. ~80% of Expected Generation Short & Long Term Contracts

(1-15 Years)

Remaining Generation Spot and Frequency Regulation Sales Firm Energy (~3,000 GWh) Reliability Charge Revenue Contract Energy Energía Plus Contracts(1) (1-2 years) Remaining Generation Regulated Energía Base Sales

Colombia Argentina

6,520

GWh

4,366

GWh

71

70%

Contracted

18%

Contracted

30%

Spot

82%

Spot

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SLIDE 71

CHILE – COLOMBIA - ARGENTINA

SYSTEM DEMAND EVOLUTION

2020 vs 2019

(*) Preliminary data Source: Coordinador Eléctrico Nacional, XM, CAMMESA. In Argentina Discos considers Residential Demand and Free Customers considers Commercial and Industrial Demand

72

Total System Regulated Customers Unregulated Customers

2.2%

  • 0.2%

1.5% 5.1%

  • 1.5%
  • 2.6%
  • 2.9% -3.0%
  • 8.3%
  • 4.6% -8.2%

4.6% 11.1% 6.9% 5.2% 1.3% Jan Feb Mar Apr May Jun

  • 11.9%

6.6%

  • 10.8%

4.9%

  • 7.5%
  • 0.5%

8.7%

  • 5.4%
  • 1.0%

2.8% 6.6% 10.4%

  • 1.3%
  • 3.2%
  • 23.5%
  • 3.7%

5.4% 9.8%

  • 17.4% -10.8%

Jan Feb Mar Apr May Jun 2.5% 1.2%

  • 7.6%

10.0%

  • 11.0%

5.8% 2.3% 25.1% 4.9% 6.8%

  • 0.3%
  • 18.1%

0.4% 0.2%

  • 20.8%

Jan Feb Mar Apr May

(*)

Jun 0.9% 17.8%

  • -12.9%%
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SLIDE 72

DIVERSIFIED ASSET BASE

OUR MARKETS

OVERVIEW

73

RATINGS SYSTEM DATA ENERGY DEMAND GENERATION BY FUEL TYPE

S&P A+

25,206 MW

Installed Capacity

+2.5%

Energy Sales Growth (CAGR 2009-2019)

Moody’s A1

77,353 GWh

Generation Fitch A

Chile

~19.1M

inhabitants

~$282B

GDP as of 2019

Regulated 41% Unregulated 59% Thermal 56% Hydro 27% NCRE 17% As of December 2019 (1) Great North Interconnected system (Sistema Interconectado del Norte Grande). (2) Central Interconnected System (Sistema Interconectado Central). (3) Non-conventional Renewable Energy including Wind, Solar, Geothermal and Biomass (4) National Electrical System (Sistema Eléctrico Nacional).

(3)

The SING(1) and the SIC(2) were interconnected in November 2017 to comprise the SEN(4) The SEN became fully operational in May 2019, once the last segment of the Cardones-Polpaico transmission line was completed

71,670 GWh 77,353 GWh

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SLIDE 73

DIVERSIFIED ASSET BASE

OUR MARKETS

OVERVIEW

74

S&P BBB- Moody’s Baa2 Fitch BBB-

17,538 MW

Installed Capacity

Energy Demand Growth (CAGR 2009-2019)

70,115 GWh

Generation S&P CCC+ Moody’s Ca Fitch CC

39,704 MW

Installed Capacity

Energy Demand Growth (CAGR 2014-2019)

131,254 GWh

Generation

Thermal 61% Hydro 27% Nuclear 6% NCRE 6%

+2.1% +0.2%

Residential 43% Industrial 28% Comercial 29% Regulated 69% Unregulated 31% Thermal 78% Hydro 21% NCRE 1%

Colombia

~50.4M

inhabitants

~$324B

GDP as of 2019

Argentina

~45.1M

inhabitants

~$436B

GDP as of 2019

70,438 GWh 128,059 GWh 131,254 GWh 70,115 GWh RATINGS SYSTEM DATA ENERGY DEMAND GENERATION BY FUEL TYPE RATINGS SYSTEM DATA ENERGY DEMAND GENERATION BY FUEL TYPE

(1)

As of December 2019 (1) Non-conventional Renewable Energy including Wind, Solar and Biomass

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SLIDE 74

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 nor as an estimation that the scenarios or assumptions will occur. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information, assumptions or examples that may be contained herein. Any

  • pinions 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 is meant only and example of a potential scenario that is based on assumptions that may or may not occur, and 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 but that are not . 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.

Regarding the impact of COVID-19, the information used for preparing this presentation is solely based on what is publicly available as of March 31, 2020 and the company cannot make any representation with respect to the real impacts as they are unforeseeable. 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

  • rders, 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 or other countries from which our

  • perations or projects obtain supplies; (viii) adverse weather conditions (ix) poor geological conditions; and (x) natural disasters, sanitary conditions, accidents or other

unforeseen or catastrophic or exceptional 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 applicable laws in Chile or in other jurisdiction.

  • The information contained herein 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, and the Bolsa Electrónica de Chile—Bolsa de Valores, or Electronic 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.

77

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SLIDE 75

PRESENTATION

Larrain Vial 14th Annual Andean Conference

September, 2020

CORPORATE