EARNINGS EARNINGS CALL CALL Disclaimer This presentation is not - - PowerPoint PPT Presentation
EARNINGS EARNINGS CALL CALL Disclaimer This presentation is not - - PowerPoint PPT Presentation
3Q-2018 EARNINGS EARNINGS CALL CALL 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
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.
HIGHLIGHTS FINANCIAL REVIEW KEY TAKEAWAYS Q&A
AGENDA
2018 Third Quarter
Earnings Call
HIGHLIGHTS
2018 Third Quarter
1
3Q-2018
$232mn +27%
LTM 3Q-2018
$886mn +12% HIGHEST EVER
EBITDA
GROWTH
5
Boosted by
ST STRONGER ONGER FIN FINANCIA ANCIAL L RES RESUL ULTS TS LOWER WER INTERES INTEREST T EXP EXPENS ENSES ES SALE SALE OF ELECT OF ELECTRICA RICA SANTIA SANTIAGO GO
LTM 3Q-2018
$350mn +89%
6
EARNINGS
GROWTH
$583 $791 $888 $850
2015 2016 2017 LTM 3Q-2018
Sustained ca cash sh fl flow growth
STRONG
CASH FLOW
GENERATION
7
FFO
ON TRACK WITH
DIVIDEND DISTRIBUTIONS
FOR 2018
8
$55mn PAID $130mn
PAYABLE ABLE NO NOVEMB VEMBER ER 29 29
$185mn
2018 DIVIDENDS
9
ADVANCING WITH STRATEGY EXECUTION
COMMERCIAL OPPORTUNITY PIPELINE
ACCELERATING A GREENER ENERGY FUTURE
Gr Greente eentegra
Tak ake or e or Pay PP ay PPAs
~10.5 ~10.5 TW TWh/year
Fixed charge + Pass-through of variable costs
Con
- nven
entiona tional l PP PPAs
~3.2TW ~3.2TWh/year
Fixed price
1.1 TWh
18 YEARS
Ren enewa ewable ble PP PPAs As
~2.3TW ~2.3TWh/year
Fixed price
KEY Y PPA SIGNED
Wind 2,272 MW Solar 369 MW Desal +2,000 l/s Hydro 531 MW
Under construction Under development Under development
WATER
DESALINATION
ADVANCING WITH STRATEGY EXECUTION
+3,100 MW PIPELINE
ACCELERATING A GREENER ENERGY FUTURE
10
70%
Complete
46km
Tunnels Excavated
61% Complete
$48mn
EQUITY CONTRIBUTIONS PENDING During Construction
Las Lajas Power House
October 2018
ADVANCING WITH STRATEGY EXECUTION
ALTO MAIPO ON TRACK
ACCELERATING A GREENER ENERGY FUTURE
11
$220MN
Expected to close in 4Q-2018
SALE of Regulated Transmission Lines (31 (316 km) 6 km)
$307MN
Closed Transaction
SALE of Eléctrica Santiago ADVANCING WITH STRATEGY EXECUTION
EXECUTING ASSET SALES
PORTFOLIO MANAGEMENT
12
ADVANCING WITH STRATEGY EXECUTION
STRENGTHENING CAPITAL STRUCTURE
ONGOING DEBT PREPAYMENT PROGRAM
Net Debt/ EBITDA
3.9x $528mn
DEBT PREPAID
13
Financial Review 2
Third Quarter 2018 Earnings Call
Key Financials ($ mn) YTD -2018 YTD -2017
- Var. (%)
3Q -2018 3Q -2017
- Var. (%)
EBITDA 655 562 16% 232 182 27% EBITDA Margin 33% 32% 1% 34% 30% 4% Net Income 279 114 145% 61 26 139% EBITDA BY MARKET Year-to-Date
4%
3Q-2018
6% 6% 34% 34% 60% 60% 32% 64%
3Q-2017 232 232 182 182 Chile Argentina Colombia EBITDA BY MARKET Third Quarter
29% 29%
562 562
6% 6%
YTD-2017
72% 25% 3% 65% 65%
YTD-2018 655 655
15
2018 THIRD QUARTER AND YEAR-TO-DATE
CONSOLIDATED
FINANCIALS
25 48 20 2018 2017 655 562
16
2018 YEAR-TO-DATE
EBITDA BRIDGE
16% INCREASE, $93 MN
24 403 143 428 2Q Var 151 144 7 2017 140 2018 1Q Var 6 3Q Var 137 116 +6%
CHILE
Main Drivers 3Q-2018 EBITDA Variation YTD-2018
Year-to-Date EBITDA increased by $25mn
3Q 1Q 2Q
17
PPAs BEGAN SUPPLY LOWER MAINTENANCE COSTS ORGANIZATIONAL EFFICIENCY
COLOMBIA
Main Drivers 3Q-2018 EBITDA Variation YTD-2018
Year-to-Date EBITDA increased by $48mn
41 46 43 22 21 65 58 79 5 2017 1Q Var 2Q Var 3Q Var 2018 142 190 +33% 3Q 2Q 1Q
18
HIGHER CONTRACT PRICES LARGER CONTRACT VOLUME GREATER NET SPOT SALES
ARGENTINA
Year-to-Date EBITDA increased by $20mn
19
Main Drivers 3Q-2018
19
EBITDA Variation YTD-2018
4.2 11.1 4.2 6.9 8.0 5.1 12.2 8.3 13.4 2018 2Q Var 2017 1Q Var 3Q Var 37 17 +119% 3Q 1Q 2Q
LARGER CONTRACT VOLUME HIGHER CAPACITY PRICES LOWER TRANSMISSION COSTS
Equity Earnin ings
93 49 104 64 9M-2017 11 8 5 10 5 9M-2018
EBITD TDA Varia ianc nce
Depreciatio eciation
Interest Exp xpense nse Non- Control
- lling
ling Interest
FX Losses es
Inco come Tax Other Gains ns Other Non- Operatin ing Varia ianc nces
114 279
20
2018 YEAR-TO-DATE ($MN)
NET INCOME
ATTRIBUTABLE TO THE PARENT
Mainly driven by ESSA sale
Year-to-Date Cash Flow Liquidity as of September 30, 2018
$533mn
Cash and Cash Equivalents
$283 mn $283 mn
53%
Undrawn Committed Facilities
$250 mn $250 mn
47%
231 142 76 Financing CF Dec-17 Operating CF Investing CF FX Impact Sep-18
283 276
6
21
2018 YEAR-TO-DATE ($MN)
CASH FLOW
AND LIQUIDITY
$3,697mn
AVERA VERAGE E COS COST AVERA VERAGE E LIF IFE NET ET DE DEBT/ BT/ EBITD EBITDA RA RATE TE
5.7% 5.7% 14 14
Years
3.9x 3.9x
(Consolidated)
94% 94%
Fixed Rate
Recourse Debt
$1,30 ,304 mn mn 35% 35%
Non-Recourse Debt
$2,39 ,393 mn mn 65% 65% 60 121 123 126 128 153 148 158 224 46 214 193 2018 2025 516 2019 22 2020 2021 24 2022 30 2023 152 152 35 2024 351 351 1,376 2026/2073 284 284 167 167 145 145 340 340 183 183 183 183 1,89 ,892
22
Amortization Schedule ($mn)
AES GENER
DEBT PROFILE
$3,697MN AS OF SEPTEMBER 30, 2018
2.0 2.0x
(Recourse Debt)
Key Takeaways 3
Third Quarter 2018 Earnings Call
HIGHEST
EBITDA EVER
ALTO
MAIPO
ON TRACK
24
THIRD QUARTER 2018
KEY TAKEAWAYS
EARNINGS CALL
EXECUTING
- ur
Gr Gree eente ntegra STRATEGY
S U C C E S S F U L LY