Corporate Presentation 3Q-2019 LEADING GENERATION COMPANY IN LATIN - PowerPoint PPT Presentation

Corporate Presentation 3Q-2019

LEADING GENERATION COMPANY IN LATIN AMERICA AES GENER AT A GLANCE WITH DIVERSIFIED OPERA TIONS IN CHILE, COLOMBIA AND ARGENTINA 5,229MW 5,229M 784 784MW 131 131MW Of installed capacity (1) Of fully funded green capacity Added since launch of Greentegra under construction (2) Leading Energy Producer in Chile Baa3/BBB-/BBB- US$852mm 3.9x (3) Stable Outlook LTM 3Q’19 EBITDA Net Debt/LTM 3Q’19 EBITDA (Moody’s/S&P/Fitch) 26% TSR ~10 years Since Launch of Average life of PPAs (4) Greentegra (5) Providing Stable Cash Flows Member of Chile and MILA Indices Launched Greentegra Strategy to incorporate Renewables leveraging on existing commercial relationships Sources: Company, Bloomberg. Note: LTM Figures derive from the addition of 9M’19 and FY’18 figures minus 9M’18 figures. (1) Includes 5,177MW of installed capacity and 52MW of Battery Energy Storage System. (2) Includes 683MW of capacity under construction (531MW Alto Maipo, 80MW Andes Solar IIa, 101MW Los Olmos 62MW Mesamávida, and 10MW Virtual Reservoir Battery) at the end of 2019. (3) Consolidated metric, not including equity credit (4) Average remaining life on PPAs in Chile as of December 2019. 2 (5) Total Shareholder Return from May 7, 2018 to January 9, 2020

KEY CREDIT CONSIDERATIONS 1 LEADING POSITION 2 DIVERSIFIED PORTFOLIO 3 HIGH QUALITY LONG TERM PPAs 4 GREEN TRANSFORMATIONAL STRATEGY 5 ROBUST CAPITAL STRUCTURE 6 STRONG FINANCIAL PERFORMANCE 3

1 LEADING POSITION COLOMBIA (1,041MW) Third largest hydro plant ARGENTINA (643MW) Most efficient CHILE (3,545MW) (1) combined cycle Leading Energy Only International T-Line Producer connecting 4 Source: Company. Global Note: Installed Capacity breakdown may not sum the total of 5,229MW due to rounding. (1) Includes 52MW of Battery Energy Storage System in operation.

2 DIVERSIFIED PORTFOLIO Geographical and Technological Diversification Mitigates Risk CUSTOMERS TECHNOLOGY (2) Adj. EBITDA Regulated/Unregulated Argentina Diesel/Gas 70% 7% 13% Colombia 27% US$852 27.2 5,229 Renewables 58% mm MW (1) TWh/y Coal 29% 66% Chile 30% Spot Source: Company. Note: Figures as of 3Q’19 LTM.. (1) Includes 5,177MW of installed capacity and 52MW of Battery Energy Storage System. 5 (2) As of December 31, 2019.

3 STRONG CONTRACTED POSITION Stable Cash Flows Supported by Long Term Contracts Colombia Chile Argentina Spot 12% Contracted 20% Spot Regulated 41% 22% 15.4TWh 7.3TWh 4.4TWh Energy Sales Spot 80% Contracted Unregulated 59% 66% PPA Tenor / ~10 year average life 2 ➔ 4 year average life 1 year average life Description LTM 3Q’19 US$564mm US$227mm US$61mm Adj. EBITDA Most long-term contracts include indexation mechanisms that periodically adjust prices based on generation cost structure and, in some cases, pass-through of full fuel and regulatory costs 6 Source: Company. (1) Note: Energy Sales figures correspond to LTM as of 3Q-2019

FIRM COMMITMENT WITH THE ENVIRONMENT 4 GREENTEGRA TRANSFORMATIONAL STRATEGY ENERGY SOLUTIONS ENERGY Generation Company PROVIDER OF CHOICE IN SOUTH AMERICA 7 Source: Company.

FIRM COMMITMENT WITH THE ENVIRONMENT 4 GREENTEGRA TRANSFORMATIONAL STRATEGY Integrating Renewables Into Our Portfolio, Leveraging On Existing Competitive Advantages Greentegra Energy Solutions Transform existing Relationships Extend existing Relationships Add Green ⁺ Contracts ~10.5 TWh /year ~3.2 TWh /year with new clients GenerFlex PPA Take or Pay PPA Coal to Green PPA Conventional PPA Blextend PPA Green Tech Variable Cost Fixed Price Fixed Price RENEWABLE Portfolio passthrough PPA ➔ ➔ ↑ Duration + ↑ Renewables ↓ Price Fixed Fixed Tailored Charge Charge Services +Coal indexation +CPI Indexation 8 Source: Company.

FIRM COMMITMENT WITH THE ENVIRONMENT 4 GREENTEGRA TRANSFORMATIONAL STRATEGY Milestones Achieved Since Launch in 2018 LONG TERM AUCTION +6.4 TWh/y RENEWABLES PPAS +1.2 GW 101 MW 600 MW 10 MW 531 MW RENEWABLES CAPACITY SOLAR WIND STORAGE HYDRO #1 Wind Developer 4.7 GW IN COLOMBIA RENEWABLES PORTFOLIO 9 Source: Company.

TRANSFORMATIONAL STRATEGY 4 GREENTEGRA Reshaping Our Portfolio With Reliable Clean Energy Increasing Green Energy Capacity by 74% Adding +1.2GW of Renewables V1 & INCLUDING SHUTDOWN WN V2 V2 BEFORE TODAY+PROJECTS GREENTEGRA 45% 5.1 GW 6.0 GW 27% 43% 59% 13% 1% 63% INCLUDING PIPELI LINE 1% 11% RENEWABLES & ENERGY STORAGE NATURAL GAS DIESEL COAL 10

ROBUST 5 CAPITAL STRUCTURE Milestones Achieved Since Launch of Greentegra in 2018 1 st GREEN $531mn De-risked NON-STRATEGIC ALTO MAIPO HYBRID BOND ASSET in the Americas SALES US$561mn ~US$1.9bn DEBT PREPAYMENT DEBT REFINANCING 11

ROBUST CAPITAL STRUCTURE & 5 DEBT PROFILE Leverage Profile as of September 30, 2019 CONSOLIDATED RECOURSE DEBT DEBT NON-RECOURSE DEBT 3,717 581 864 1,094 1,178 Angamos Cochrane Alto Maipo LTM $852m 52mn $550mn 3Q’19 Adj. EBITDA 1.8x 3.9x Net Debt/ LTM 3Q’19 EBITDA 12

STRONG FINANCIAL PERFORMANCE 6 SOUND FINANCIAL METRICS & STABLE BUSINESS EBITDA & EBITDA margin Total Debt and Net Debt / EBITDA 34% 33% 34% 34% 4.4x 4.3x 3.9x 887 3.6x 852 793 778 3,824 55 3,741 3,717 61 3,525 29 25 241 174 227 172 1,178 1,353 1,626 1,179 581 591 591 564 2,540 2,387 2,346 2,198 2016 2017 2018 LTM 3Q-19 2016 2017 2018 LTM 3Q-19 Chile Colombia Argentina EBITDA Margin PF/Non-Recourse Corporate Debt Net Debt/EBITDA Capital Allocation CAPEX 564 562 806 798 497 444 351 466 471 479 481 405 371 248 184 203 261 102 215 263 93 92 83 83 73 74 53 48 2016 2017 2018 LTM 3Q-19 2016 2017 2018 LTM 3Q-19 Equity Contribution Dividends Paid Debt Payment Maintenance Growth 13

KEY TAKEAWAYS 1 LEADING POSITION Leading energy producer in Chile over the last four years 2 DIVERSIFIED PORTFOLIO 3 countries, 7 technologies, diverse customer base 3 HIGH QUALITY COMMERCIAL RELATIONSHIPS ~10-year remaining average life in Chile 4 GREEN TRANSFORMATIONAL STRATEGY Focused on renewables TARGET (1) 5 ROBUST CAPITAL STRUCTURE 3.5x Net Debt/Adj. EBITDA 6 STRONG FINANCIAL PERFORMANCE Source: Company. 14 Note: LTM Figures derive from the addition of 9M’19 and FY’18 figures minus 9M’18 figures. . (1) AES Gener targets to be at 3.5x Net Debt / Adj. EBITDA in 2022

APPENDIX Supplementary Information

FIRM COMMITMENT WITH THE ENVIRONMENT REDUCING CARBON INTENSITY CO 2 SYSTEM RENEWABLE ENERGY Intensity FLEXIBILITY REDUCTION Adding Batteries 1.2GW of Clean Energy Flexible Thermal Fleet Interconnection Renewable Growth Capacity ALTO MAIPO ANDES SOLAR IIa MESAMAVIDA LOS CURUROS VIR IRTUAL CASA ELÉCTRICA CASTILLA LOS OLMOS APOTOLORRU RESERVOIR 531 MW 80 MW 110 MW 21 MW CAMPO LINDO 255 MW 10 MW 235 MW COD: 2020 COD: 2020 COD: 2020/2021 COD: 2021 Acquired in 2019 COD: 2023 COD: 2019 16 Source: Company.

FIRM COMMITMENT WITH THE ENVIRONMENT ACCELERATING A GREENER ENERGY FUTURE Overview of renewable growth capacity RUN OF RIVER HYDRO WIND ENERGY STORAGE SOLAR ( 531 MW) ( 600 MW) ( 10 MW) ( 281 MW) Alto Maipo, 531MW Mesamávida, 62MW Virtual Reservoir, 10MW Castilla 21MW San José de Maipo Los Angeles 5 Hour Meta Chile Chile Chile Colombia COD:2020 COD: 2020 COD : 2021 COD: 2019 Andes IIa 80MW Los Olmos, 101MW Atacama Desert Mulchén Chile Chile COD: 2020 COD: 2021 Campo Lindo 72MW Andes IIb 180MW Los Angeles Atacama Desert Chile Chile COD:2021 Casa Electrica & Apotolorru 255MW La Guajira Colombia COD: 2023 Los Cururos 110MW Projects Under Construction Chile ACQUIRED IN 4Q-2019 Projects Ready to be built 17 Source: Company.

PROJECT UPDATE ALTO MAIPO Hydro Project Construction Update: Largest Renewable Project Under Construction in Chile • Lump sum fixed price contract with Las Lajas Strabag, including guaranteed Change in completion dates and strong Risk Profile 267 MW collaterals posted in favor of the 1 project Las Lajas & • US$3,048mm construction cost Project Alfalfal II • Additional US$392mm payable over 20- Alfalfal II Capitalization year term after COD 2 Tunnels 60km 264 MW PROJECT • Limited Up to US$200mm for additional project 84% cost and debt service as an equity Commitments contribution by AES Gener • No additional debt at AES Gener level COMPLETION Volcan Tunnel 14km Tunnel System Excavation Progress Las Lajas & 55 km 5 km 91% Alfalfal ll Tunnels Volcan Tunnel 42% 6 km 8 km 18 0 10 20 30 40 50 60 70 Source: Company. Progress as of Jan1, 2020

FIRM COMMITMENT WITH THE ENVIRONMENT ACCELERATING A GREENER ENERGY FUTURE Wind, solar & storage projects to support commercial agreements 2020 2021 2022 2023 ANDES SOLAR IIa SOLAR 80 MW #1 PLAYER WITH VIRTUAL RESERVOIR MOST RENEWABLE CAPACITY ENERGY STORAGE UNDER CONSTRUCTION IN CHILE 10 MW – 5 HOUR LOS OLMOS WIND 101 MW MESAMÁVIDA WIND 62 MW CAMPO LINDO WIND 72 MW CASA ELÉCTRICA #1 WIN 1 WIND WIND 180MW DEVELOPER APOTOLORRU IN C N COL OLOM OMBIA WIND 75MW 19 Source: Company.