5a Cumbre Corpbanca

December 10-11, 2014

Company Overview
Markets Update
Financial Review

Development
Key Takeaways

COMPANY
OVERVIEW

About AES Gener

Operations in 4 markets: SIC and SING in Chile, SIN in Colombia and SADI in
Argentina

Diversified asset portfolio: Generation Sources, Customers and Markets

Long-term Contractual Position

Installed Operating Capacity: 5,083 MW (Successful completion of projects for

1,696 MW from 2007 to 2013)

Capacity under Construction: 1,256 MW

International and Local Investment Grade Rating :

Chivor
1

Elctrica
Cochrane

Elctrica
Ventanas
7

under construction

15
Norgener
2

AES Gener: BBB- (Fitch; S&Ps), Baa3 (Moodys) A+ (local, Fitch; Feller)
AES Chivor: BBB- (S&Ps), Baa3 (Moodys)
Angamos: BBB- (S&Ps) and Baa3 (Moodys)

TermoAndes
4

2
3 15

8
5 67
9 10

Elctrica
Angamos
3

14
16
5

OWNERSHIP AS OF NOV. 2014

11
12 13

Guacolda
5
Elctrica
Campiche
6

Alto Maipo
under construction

16

70.7%

AFPs
16.4%
Other
12.9%

MARKET CAP1:
US$4,6 MILLION
1: As of December 04, 2014, Source: Bloomberg

Gener
5 12 13 14
Elctrica
Santiago
8 9 10 11

Electricity Revenues
LTM September 2014
US$2,196 million

Unregulated
Customers

37%

Regulated
Customers

Spot Sales

35%

28%

Installed Capacity by Technology

2014*

Guacolda Sales are not included

Installed Capacity by Market

2014

51%

20%

SIC:2,618 MW

16%

13%

46%

25%

COAL

HYDRO

20%

9%
0.3%

NATURAL DIESEL BIOMASS

GAS /
DIESEL

*Installed capacity as of October 31, 2014, including Guacolda

SIN: 1,000 MW SING: 822 MW SADI: 643 MW

Installed capacity as of October 31, 2014, TermoAndes is

connected to the SING and the Argentine system (SADI).

5,083 MW in operation & 1,256 MW in construction

Diversified Asset Portfolio

MARKET
UPDATE

Energy Reservoirs - SIC

Hydro conditions in 2H14 close to a normal year

GWh equivalent

4,000
3,200

Key Drivers

2,400
1,600

SIC

Reservoirs level in 2H14 higher than in 2H13 due

800

to an increase in rainfall and better snow melting

conditions.

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2013

Average marginal cost ~ 80 US$/MWh (Oct Nov

2014

2014)

Marginal Cost

SING

300

Average marginal cost (Oct Nov 2014) lower than

the same period last:

180

120

Lower fuel costs and

60

Higher LNG dispatch at minimum technical

load

SIC

Nov-14

Sep-14

Jul-14

May-14

Mar-14

Jan-14

Nov-13

Sep-13

Jul-13

May-13

Mar-13

0
Jan-13

US$/MWh

240

Average marginal cost ~ 60 US$/MWh (Oct Nov

2014)

SING

Market Update: Chile

Market Update: Colombia

Energy Reservoirs
Improve in hydro conditions during 2H14
20000

GWh

17000

Key Drivers

14000

Reservoir levels were above historical average in

11000

June and July 2014 due to an increase in rainfall

8000

Average spot price decreased significantly

5000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2013

Sogamoso initiated commercial operations in

2014

November 2014 (~900 GWh energy generation)

Spot Price

Average marginal cost in Oct 2014 ~ 100

US$/MWh

250
200
150
100
50
Sep-14

Jul-14

May-14

Mar-14

Jan-14

Nov-13

Sep-13

Jul-13

May-13

Mar-13

Jan-13

US$ / MWh

between 2Q14 and 3Q14

CAMESSA Price (TermoAndes)

Key Drivers

30

Mercado
Lower spot prices in US dollar :
Spot price in Argentine pesos remained
at 120 Ar$/MWh
Depreciation of the Argentine peso

18

12
6

Devaluation 9M14 ~ 29%

Lower contract sales under Energa Plus

program due to lower customers demand

Successful technical testing SING SADI

Interconnection

sep-14

jul-14

may-14

mar-14

ene-14

nov-13

sep-13

jul-13

may-13

mar-13

0
ene-13

US$/MWh

24

Market Update: Argentina

FINANCIAL
REVIEW

10

EBITDA* BY MARKET US$ million

738

528

474

27%
3%

43%

38%

1%

4%

33%

18%
2010

2011

SIN

37%

34%

472

9%

10%

35%

42%

27%

24%

11%
25%

5%
22%

27%

32%

30%

32%

2012

2013

9m 2013

9m 2014

SADI

SING

600

52

360

514

SIC

22

480
US$ Milion

2009

623

32%

39%
32%

660
30%

472

27

SING

SADI

514

240
120
0
EBITDA
9M13

SIN

SIC

EBITDA
9M14

* EBITDA = Gross profit + administrative expenses + depreciation

EBITDA by Market

11

Financial Indicators
DEBT * (US$ MILLION)
2,785
2,282

2,268

2,120

1,298

1,789
740

1,049
2009

2,750

1,010

1,154

1,126

1,110

1,114

1,156

2010
2011
Project Finance Debt

2012

1,478

NET DEBT / EBITDA (TIMES)

1,487

2013 **
Corporate Debt

1,272

sep-14

3,3x

3,2x
2,8x

2,5x

3,4x

3,0x

2,3x

CAPEX (US$ MILLION)

865
532

511
395

507

419

2009

2010

2011

2012

2013

sep-13 sep-14

294

2009

2010

2011

2012

2013

9M 2013

9M 2014

Note: (*) Other Current Financial Liabilities

(**) Includes Junior Subordinated Bonds issued in December 2013 for MMUS$450

12

Debt Profile 3Q 2014

TOTAL DEBT US$ 2,868 MILLION
Angamos Project Finance was
refinanced with US$800 million
Senior Secured Bonds
1,376

49.8%
52.0%
Project
Finance

Senior Notes Chivor

under refinancing
process of US$170
million

15,9%

14,2%

15.7%
Junior
Subordinated
Notes

7,2% 12,9%
14.0% 10.9% 5.9%
1.5%
Senior
Notes
Gener

Project Finance

Senior Leasing
Notes Tunjita
Chivor

541

243

200

2014

Chilean
Bonds

66

64

2015

2016

Chilean Bonds

97

131

2017

2018

Senior Notes Chivor

150

2019

Senior Notes Gener

2020

Leasing Tunjita

Amortization Schedule (US$ Million)

16

6,0%

2021

2022 a 2073

Junior Subordinated Notes

DEVELOPMENT
14

Project Level Debt (Project Finance)

Cochrane Project: US$ 1,000 million

Alto Maipo Project: US$ 1,217 million
Guacolda V Project: US$ 318 million
Tunjita Project: US$ 63 million (leasing)

Equity Contribution
Partner Equity: Mitsubishi Corporation, Antofagasta
Minerals
Junior Subordinated Notes: US$ 300 million
Capital Increase of US$150 million

Total Investment
~ US$ 4 Billion

Majority shareholder at Guacolda

Ownership 50% plus 1 share.
Partner equity from GIP

Balanced Financial Structure

2nd Expansion Phase: Financing Completed

Projects under construction: Chile and Colombia

PLATFORM EXPANSION

2015
First Half

TUNJITA 20 MW HYDRO (RUN-OF-RIVER)

CHIVOR

Progress: 89%

Second Half

GUACOLDA V 152 MW COAL FIRED

CHILE - SIC

SOLAR ANDES 20 MW
CHILE SING

Progress: Engineering Stage (6%)

Progress: 81%

ANGAMOS DESALINIZATION PLANT

CHILE SING

Agreement signed with Abengoa

NTP: October 2014

19

PLATFORM EXPANSION

2016
COCHRANE 532 MW COAL - FIRED
SING

Progress: 56%

2017 (Unit I)

2018 (Unit II)

ALTO MAIPO 531 MW HYDRO (RUN-OF-RIVER)

SIC

Progress: 7%

Projects under construction: Chile

20

Other Projects: Chile

PLATFORM EXPANSION
EMISSION CONTROL EQUIPMENT (RETROFITS)

As of September 30, 2014:

~ US$101 million at Norgener
~ US$94 million at Ventanas
Installation in Units I, II and IV at Guacolda Complex
~ US$101 million

SING SADI INTERCONNECTION

Technical testing carried out in February and May 2014

OTHER DEVELOPMENT PROJECTS
Andes Solar Project up to 200 MW
Existing Water Rights (hydro), hydro run of river projects
Battery Energy Storage (BESS)

21

18

KEY
TAKEAWAYS

19

KEY TAKEAWAYS
CONTINUING SOLID FUNDAMENTALS

SOLID PROGRESS OF PROJECTS UNDER CONSTRUCTION

SECOND PHASE OF EXPANSION PLAN FULLY FUNDED

FOCUSING GROWTH ON EXPANDING CURRENT ASSETS

FINANCIAL RESULTS DURING 3RD QUARTER 2014

HIGHER ENERGY GENERATION IN OUR MAJOR MARKETS

23

CONSOLIDATED AVAILABILITY: 92.8%

SIC: HIGHER COAL EFFICIENT GENERATION RELATED TO THE START-UP OF
VENTANAS IV IN MARCH 2013 AND HIGHER SPOT SALES DUE TO HIGHER
GENERATION AT NUEVA RENCA
SING: HIGHER DEMAND UNDER NORGENER CONTRACTS AND HIGHER SPOT
SALES AT ANGAMOS
SIN: BETTER HYDROLOGICAL CONDITIONS IN COLOMBIA IN 3Q LED TO AN
INCREASE IN GENERATION
HIGHER SALES TO THE SPOT MARKET AT HIGHER PRICES
SADI: LOWER CONTRACT AND SPOT SALES IN ARGENTINA