EARNINGS EARNINGS CALL CALL Disclaimer This presentation is not - - PowerPoint PPT Presentation

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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


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3Q-2018 EARNINGS EARNINGS CALL CALL

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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.

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HIGHLIGHTS FINANCIAL REVIEW KEY TAKEAWAYS Q&A

AGENDA

2018 Third Quarter

Earnings Call

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HIGHLIGHTS

2018 Third Quarter

1

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3Q-2018

$232mn +27%

LTM 3Q-2018

$886mn +12% HIGHEST EVER

EBITDA

GROWTH

5

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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

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$583 $791 $888 $850

2015 2016 2017 LTM 3Q-2018

Sustained ca cash sh fl flow growth

STRONG

CASH FLOW

GENERATION

7

FFO

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ON TRACK WITH

DIVIDEND DISTRIBUTIONS

FOR 2018

8

$55mn PAID $130mn

PAYABLE ABLE NO NOVEMB VEMBER ER 29 29

$185mn

2018 DIVIDENDS

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SLIDE 9

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

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SLIDE 10

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

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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

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$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

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ADVANCING WITH STRATEGY EXECUTION

STRENGTHENING CAPITAL STRUCTURE

ONGOING DEBT PREPAYMENT PROGRAM

Net Debt/ EBITDA

3.9x $528mn

DEBT PREPAID

13

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Financial Review 2

Third Quarter 2018 Earnings Call

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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

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25 48 20 2018 2017 655 562

16

2018 YEAR-TO-DATE

EBITDA BRIDGE

16% INCREASE, $93 MN

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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

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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

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SLIDE 19

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

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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

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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

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SLIDE 22

$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)

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Key Takeaways 3

Third Quarter 2018 Earnings Call

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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

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3Q-2018 EARNINGS EARNINGS CALL CALL