[PPT] - CORPORATE PRESENTATION AES GENER March 2017 AES Gener at a Glance PowerPoint Presentation

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CORPORATE PRESENTATION

AES GENER March 2017

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Leading power generation company controlled by AES Corporation

AES Gener at a Glance

IMPROVING LIVES IN

CHILE, COLOMBIA AND ARGENTINA 5,795

GROSS MW in operation

4,132 1,020 643

531

GROSS MW in construction (Alto Maipo Project in Chile)

TECHNOLOGIES

COAL, 3,011 MW HYDRO, 1,291 MW GAS/DIESEL, 1,459 MW OTHERS, 34 MW

FOUNDED IN 1981

And Acquired by The AES Corporation in 2000, Who Currently owns 66.7% Named to

DOW JONES SUSTAINABILITY INDEX for Chile

AES GENER IS ENERGIZED BY A REGIONAL WORKFORCE OF

+1,500 PEOPLE

RECOGNIZED AS A

GREAT PLACE TO WORK in

CHILE (ranked 16th), COLOMBIA (ranked 16th) and ARGENTINA (ranked 15th)

$7.8 B

TOTAL ASSETS

OWNED & MANAGED

$778 M

EBITDA

2016

$3.8 B

CONS. DEBT

2016

$3.2 B

MARKET CAP

AS OF MARCH 2, 2017

RATED

Baa3 / BBB- / BBB- BY

MOODY’S, S&P GLOBAL FITCH RATINGS

MARKET SHARE

CHILE 31% by generation COLOMBIA 6% by inst. cap ARGENTINA 3% by inst. cap

COMMERCIAL BUSINESS LARGELY CONTRACTED

EFFICIENT GENERATION CONTRACTED WITH AN AVERAGE LIFE OF 11 YEARS LISTED IN

SANTIAGO STOCK EXCHANGE

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3 Contains Forward-Looking Statements

2016 HIGHLIGHTS

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2016 Highlights

AES Gener Consolidates its Leadership as an Energy Solution Provider

 AES Gener achieved the highest EBITDA ever, $778m in 2016

$661 $623 $671 $691 $778 2012 2013 2014 2015 2016 US$ mn.

DIVERSIFICATION FLEXIBILITY INNOVATION AGILITY RELIABILITY EXCELLENCE

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2016 Highlights (cont’d)

Largest Energy Producer in Chile

 AES Gener continues to be the largest energy producer in Chile contributing 31% of the total gross

generation of the country in 2016

AES Gener 28% AES Gener 41%

SIC SING ~53 TWh ~19 TWh

AES Gener 31%

SIC + SING

~72 TWh

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2016 Highlights (cont’d)

Successful Commissioning of 573 MW and Environmental Equipment

2016

JUNE 30TH 20MW TUNJITA MAY 28TH 21MW ANDES SOLAR JULY 9TH 266MW(*) COCHRANE UNIT 1 OCTOBER 12TH 266MW(*) COCHRANE UNIT 2 OCTOBER 13TH 20MW COCHRANE BESS JUNE ENVIRONMENTAL EQUIPMENT

(*): In January 2017, the Chilean ISO approved an increase in Cochrane’s gross installed capacity to 550 MW

FEBRUARY ENERGY EXPORT INTERANDES

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2016 Highlights (cont’d)

Recovery Signs in Argentina

 Argentina’s economic upturn coupled with key economic reforms and

regulatory improvements in the power sector

 Release of currency controls  Reduction of Government subsidies  Plans to increase installed capacity by 22.5 GW by 2025  Normalization of CAMMESA payments  Tariff dollarization (Resolution 19/2017 of Feb 2nd, 2017)

TERMOANDES (643 MW)

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2016 Highlights (cont’d)

Advancing Forward with Restructuring Agreement for Alto Maipo

 Reached an agreement to secure funding for the cost overruns for up

to 22% including meaningful contingencies, subject to negotiation of definitive documents and Lenders Credit Committee Approvals

 Main Terms of the Agreement:

 AES Gener’s acquisition of the 40% stake from Minera Los Pelambres  Incorporation of Strabag, the main contractor, as a minority shareholder at

book value, with an initial stake of approximately 7%

 Amendment of the 20 year PPA with Minera Los Pelambres. All termination

ptions were removed

 Changes to the terms and conditions of the current financing arrangements

f the project

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9 Contains Forward-Looking Statements

COMPANY OVERVIEW

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Markets Overview

CHILE ($581m EBITDA)

4,132 MW of installed capacity (SIC+SING)

COLOMBIA ($172m EBITDA)

90% 10% ENERGY SALES

Unregulated Customers Spot Sales

ARGENTINA ($25m EBITDA)

99% 1% NET GENERATION

Thermal Solar

6,987 GWh

SING

30% 57% 13% ENERGY SALES

Unregulated Regulated Spot Sales

82% 17%1% GENERATION

Thermal Hydro Other

8,208 GWh

SIC

50% 50% ENERGY SALES

Contract Sales Spot

100% GENERATION

Hydro

4,373 GWh

SIN

53% 47% ENERGY SALES

Contract Spot Sales

100 % GENERATION

Thermal

4,637 GWh

SADI

$641m $849m $427m $112m

SING ASSETS, 1,389 MW

NORGENER, 277 MW, coal ANGAMOS, 558 MW, coal COCHRANE, 532 MW, coal ANDES SOLAR, 21MW

SIC ASSETS, 2,743 MW,

VENTANAS, 884 MW, coal GUACOLDA, 760 MW, coal ELECTRICA SANTIAGO, 750 MW, gas & diesel HYDROS, 271 MW OTHERS, 78 MW, diesel

SADI ASSETS, 643 MW,

TERMOANDES, 643 MW, gas

SIN ASSETS, 1,020 MW,

CHIVOR, 1,000 MW, hydro TUNJITA, 20 MW, hydro

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We operate a 5,795 MW diversified portfolio in terms of markets and technologies

Portfolio Overview

71% 18% 11% Chile Colombia Argentina

Countries

47% 24% 18% 11% SIC SING SIN SADI

Markets

77% 23%

Thermal Renewable

Technology

52% 22% 23% 2% 1%

Coal Hydro Gas/Diesel Diesel Other

Fuel

44% 31% 22% 3% SIC SING SIN SADI

EBITDA

5,795 MW 5,795 MW 5,795 MW 5,795 MW $778M 75% 22% 3% Chile Colombia Argentina $778M

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Long term contracts with creditworthy and reliable offtakers

Commercial Strategy for Chile

Overview



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 distribution companies (regulated) and unregulated customers (mining and industrial)



Contracts include Price indexation mechanisms (coal and US CPI) and passthrough provisions (regulatory risks)



11 years average life of outstanding contracts

Customers

5,000 10,000 15,000 20,000 25,000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

GWh per Year

Regulated Non-Regulated Guacolda

Discos 30% Mining 62% Industrial 8%

Contract

avg. life:

11 years

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Colombia Argentina

Commercial Strategy for Colombia and Argentina

Contract Energy Energia Plus Contracts Remaining Generation Spot Sales to ISO

47% 53%

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

50% 50%

ENERGY SALES

Contract Spot

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

Successful Project Development and Construction

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

 Extensive experience in project development

and execution on time and within budget

 49% increase of installed capacity between

2007 and 2014

 Total investment of $3 B

3,417 5,094

2007 2014

+49%

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Phase II 2015-2019: 1,256 MW of new capacity

Successful Project Development and Construction

 $4 B investment, fully funded

+21%

Guacolda V – 152 MW Angamos Desalinization Tunjita – 20 MW Andes Solar – 21 MW Cochrane – 532 MW Alto Maipo – 531 MW

Guacolda V - COMPLETED

Construction Progress

 152 MW  Coal  Start Date: Dec. 2015 Angamos Desal - COMPLETED  Desalination plant Andes Solar - COMPLETED  21 MW  Solar  Start Date: May 2016 Tunjita - COMPLETED  20 MW  Hydro  Start Date: Jun 2016 Cochrane - COMPLETED  532 MW (2 units)  Coal  Start Date: Oct 2016 Alto Maipo  531 MW  Run of River Hydro  Progress: 49%

152 573 531 2015 5.222 5.070 2019 6.326 5.795 2016 5.795 5.222

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Strong Financial Performance

Total Debt and Net Debt/EBITDA EBITDA and EBITDA Margin Total Capex Capital Allocation

355 377 426 581 209 263 246 172 624 672 691 778 28% 29% 32% 34%

2013 2014 2015 2016 Chile Colombia Argentina Ebitda Margin

1,298 1,520 1,669 2,198 1,487 1,214 1,706 1,626 2,785 2,734 3,375 3,824 3.3x 3.7x 4.5x 4.3x

2013 2014 2015 2016 PF / Non Recourse Debt Corporate Debt Net Debt / Ebitda

336 656 866 473 82 127 109 83 532 830 1,002 562

2013 2014 2015 2016 Construction Maintenance Environmental

162 112 201 124 210 230 235 93 66 430 92 102

439 772 527 319

2013 2014 2015 2016 Equity Contribution Dividends Debt Paydown

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Strong Capital Structure

Manageable Amortization Profile for US$ 3.8 M Debt

 Average Cost: 5.7%  Average Life: 13 years  Net Debt/EBITDA: 4.3x (2.1x excluding non recourse debt)  98% denominated in USD  91% at fixed interest rate

43% 57%

Recourse Debt Non Recourse Debt

143 147 188 166 575 181 198 209 589 1,429 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026/2073

AMORTIZATION SCHEDULE (US$ M)

Recourse Debt Non Recourse Debt

$3,824m

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Key Investment Considerations

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

f 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 passthrough provisions STRONG CAPITAL STRUCTURE



A successful financing history committed to investment grade rating

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19 Contains Forward-Looking Statements

APPENDIX

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We operate a 5,795 MW diversified portfolio in terms of markets and technologies

Assets Overview

SIC (2,744 MW) SING (1,388 MW) Colombia (1,020 MW) Argentina (643 MW)

VENTANAS, 884MW

4 coal units Located in Valparaiso Start of operations: 1964/1996/2010/2013

GUACOLDA, 760MW

5 coal units Located in Huasco Start of operations: 1995/1996/2009/2010/2015

ELECTRICA SANTIAGO 750MW

2 gas/diesel units 2 diesel units

HYDRO PLANTS 271MW

4 run of river hydro units

Chile

NORGENER, 277MW

2 coal units Located in Tocopilla Start of operations: 1995/1997

ANGAMOS, 558MW

2 coal units Located in Mejillones Start of operations: 2011

COCHRANE, 532MW

2 coal units Located in Mejillones Start of operations: 2016

ANDES SOLAR, 21MW

1 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 units 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, 337MW

3 diesel plants: Los Vientos, Santa Lidia and Laguna Verde

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Angamos

EBITDA and EBITDA Margin Revenue Credit Metrics Capital Expenditures

Summary of Historical Financials

127 119 112 111 122 38% 39% 38% 39% 40%

2012 2013 2014 2015 2016 Ebitda Ebitda Margin

26 5 11 16 4

30

2012 2013 2014 2015 2016

198 225 214 238 252 133 81 83 44 52 332 308 298 284 310

2012 2013 2014 2015 2016 Contracted Spot Other

6.5x 5.8x 6.8x 6.9x 6.2x 3.0x 3.1x 3.0x 2.5x 2.8x

2012 2013 2014 2015 2016 Net Debt / Ebitda Ebitda / Finance Expenses

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Guacolda

EBITDA and EBITDA Margin Revenue Credit Metrics Capital Expenditures

Summary of Historical Financials

613 554 515 438 381

2012 2013 2014 2015 2016

117 165 129 122 150 19% 30% 25% 28% 39%

2012 2013 2014 2015 2016 Ebitda Ebitda Margin

98 125 342 115 78

2012 2013 2014 2015 2016

4.6x 2.9x 4.8x 6.3x 4.9x 3.7x 7.0x 7.3x 3.9x 3.5x

2012 2013 2014 2015 2016 Net Debt / Ebitda Ebitda / Interest Expenses

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23 Contains Forward-Looking Statements

2016 FINANCIAL REVIEW

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Consolidated Financials

Key Financials (US$ mn.)

2016 2015

Var. (%)

Operating Revenues $2.286 $2.165 6% Gross Profit $625 $583 7% EBITDA $778 $691 13% EBITDA Margin 34% 32% 2% Net Income $261 $265

1%

SIC 44% SING 31% SIN 22% SADI 3%

$778 2016

SIC 39% SING 22% SIN 36% SADI 3%

$691 2015 EBITDA BY MARKET

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EBITDA Bridge

EBITDA Increased by $87 mn. (13%)

65 90 74 2016

778

SIN SADI 6 SING SIC 2015

691

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SIC Market

EBITDA Increased by $65 mn. (24%)

 Higher demand from unregulated customers  Higher hydro and coal generation  Lower margin in Nueva Renca

338 273 2015

+24%

2016

EBITDA VARIATION ELECTRICITY REVENUE BREAKDOWN

Regulated Customers 57% Unregulated Customers 30% Spot Sales 13%

$849

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SING Market

EBITDA Increased by $90 mn. (58%)

 Cochrane and Andes Solar started operations  Higher availability due to lower maintenance activities  Better PPA terms and lower system overcosts

EBITDA VARIATION ELECTRICITY REVENUE BREAKDOWN

243 153 2015

+58%

2016

Unregulated Customers 90% Spot Sales 10%

$641

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Contract Sales 50% Spot sales 50%

SIN Market

EBITDA Decreased by $74 mn. (30%)

 Lower average spot prices  Colombian Peso devaluation  Higher Generation

EBITDA VARIATION ELECTRICITY REVENUE BREAKDOWN

172 246

30%

2016 2015

$427

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Contract Sales 53% Spot sales 47%

SADI Market

EBITDA Increased by $6 mn. (30%)

 Higher generation due to lower maintenance activities  Higher prices in spot sales, as per Resolution 22/2016  Lower energy sales under Energia Plus program

EBITDA VARIATION ELECTRICITY REVENUE BREAKDOWN

25 19 2015 2016

+30% $112

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Net Income

Attributable to AES Gener (US$ mn.)

69

87 14 26 14 19 95 2016

261

3

170

2015

265

2015 Adjusted

One Time Impacts EBITDA Variation Depreciat ion Higher Interest Expense Income Tax NCI and Other DFC Write Off

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Cash Flow

470 267

317

Operating CF

422 Dec-15 Dec-16

FX Variation

5

Financing CF Investment CF

542 CASH FLOW

Cash and Cash Equivalents 67% Undrawn Committed Facilities 33%

$706 LIQUIDITY 2016 EOP

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32 Contains Forward-Looking Statements