Post on 23-Jul-2020
2Q 2016 EARNINGS CALLAugust 5, 2016
Agenda
� Key Highlights
� Financial Review
� Construction Projects
� Key Takeaways
� Q&A
2
� AES Gener continues to be the largest energyproducer in Chile contributing 30% of the totalgeneration in the country
� Cochrane’s Unit 1 (266 MW), Andes Solar (21 MW)and Tunjita (20 MW), began commercial operations
� Gas agreements with Endesa and ENAP allowedcompany to increase generation of Nueva Renca
� Continued exporting energy from Chile toArgentina
� In Colombia, reservoir levels recovered ashydrology transitioned from El Niño to normal
3
Key Highlights
� ~US$216mm in Liability Management transactions
� On July 28th, S&P reaffirmed the “BBB-” creditRating of the company, outlook “Stable”
� Company was awarded as winner of the 2016“Carlos Vial Espantoso” Award
� Termoandes distributions from Argentina reachedUS$15.7mn
� Company participated in the Energy bid fordistribution companies held on July 27th
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Key Highlights (Cont.)
� Long term contracted position with an average life of11 years with a high quality and diversified customerbase
� No significant maturities until 2024
� Efficient portfolio fully aligned with our contractedcapacity
5
Key Highlights (Cont.)
Distribution33%
Mining59%
Industrial8%
0
5,000
10,000
15,000
20,000
25,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
GWh / year
Non-Regulated Regulated Guacolda
Mining61%
Industrial5%
Distribution34%
Contractavg. life: 11 years
FINANCIAL REVIEW
Key Metrics (US$ mn) 1H 2016 1H 2015 Var.
Operating Revenues 1,099 1,073 2%
Gross Profit 272 246 11%
Total EBITDA 345 311 11%
EBITDA margin 31% 29%
Net Income 108 83 30%
EBITDA by Market
7
Consolidated Financials
1H 2016 1H 2015
Note: Numbers rounded for the purpose of the presentation
SIC50%
SING 31%
SIN16%
SADI3%
SIC50%
SING 22%
SIN27%
SADI1%
8
EBITDA Variation by Market (US$ mn)
311
345
16
37
9 28
1H15 SIC SING SADI SIN 1H16
9
Electricity Revenues BreakdownEBITDA
SIC – EBITDA US$171 mn
+10%
Higher demand from unregulated customers
Higher efficient generation (hydro and coal)
Lower margin in Nueva Renca
155
171
1H15 1H16
US$428 mn
Regulated customer
s55%
Unregulated customers
29%
Spot sales16%
Unregulated Customers
29%
Spot Sales16%
Regulated Customers
55%
69
106
1H15 1H16
Unregulated
customers92%
Unregulated - SADI
0%
Spot sales8%
Spot sales - SADI0%
10
Electricity Revenues BreakdownEBITDA
SING – EBITDA US$106 mn
+54%
Better PPAs terms
Higher spot sales due to higher average prices
Energy exports to Argentina
Unregulated Customers
92%
Spot Sales8%
US$295 mn
Regulated customer
s42%
Spot sales58%
11
SIN – EBITDA US$56 mn
Drop in contract sales
Higher spot prices on net spot transactions
Lower maintenance
EBITDA
-34%
84
56
1H15 1H16
Unregulated Customers
42%
Spot Sales58%
US$208 mn
Electricity Revenues Breakdown
Unregulated
customer -SING0%
Unregulated
customers58%
Spot sales - SING0%
Spot sales42%
3
12
1H15 1H16
SADI – EBITDA US$12 mn
Higher Generation
Tariff Increase
Lower sales under “Energía Plus”
EBITDA
+328%
US$52 mn
Spot Sales42%
Unregulated Customers
58%
Electricity Revenues Breakdown
12
13
Net Income (US$ mn)
(Attributable to AES Gener)
83
108
34
1
2
1 3 5
1 2
1H15 EBITDA FX Impact EquityEarnings
Depreciation Net financingcosts
Other Income tax MinorityInterest
1H16
LIQUIDITY: US$695mn
14
Cash Flow (US$ mn)
267
459
129
340
5
282
Dec. 2015 Operating Activities Financing Activities Investing Activities FX Impact 1H16
Cash and Cash
equivalents66%
Short term time
deposits0%
Undrawn commited facilities34%
69141 143
184 162
572
177 193 202
2006
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025/2073
Total Outstanding as of June 30, 2016 US$3,850 mn
Average Cost 5.3%
Average Life 14 years
Net Debt/EBITDA 4.6x (2.5x excluding non-recourse debt)
Recourse Debt44%
Non Recourse Debt56%
15
Debt Profile (US$ mn)
97.8% denominated in US$ 90.2% at fixed interest rate
CONSTRUCTION PROJECTS
+25% Project Progress
Guacolda 5 Completed
Angamos Desal Completed
Solar Andes Completed
Tunjita Completed
Cochrane Unit 1 Completed
Cochrane Unit 2 97.8%
Alto Maipo 34.0%
CURRENT PROJECTS STATUS
Guacolda V – 152 MW
Angamos Desalinization
(*) Additional Capacity of Angamos
Tunjita – 20 MW
Solar–Andes – 21 MW
Cochrane – 532 MW
Alto Maipo – 531 MW
Second Phase of Expansion
$4B Fully Funded
5,057 5,222
5,795
15213 (*) 307
266
531
2015 2016 2018/2019
MW
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KEY TAKEAWAYS
� BEST RESULTS ACHIEVED IN THE LAST FIVE YEARS
�EBITDA increased by 11%
� Increase in Net Income of 30%
� LEADER IN GENERATION IN CHILE
� Company contributed with 30% of country generation
� Operational excellence proven by high availability
� DIVERSIFIED AND CONTRACTED ASSET PORTFOLIO
� Geographical, technological, customers base and fuel sources
� Dollarized Long Term PPAs aligned with efficient generation in Chile
� MOVING FORWARD WITH SECOND EXPANSION PHASE
� Andes Solar, Unit 1 of Cochrane and Tunjita CODs achieved
� Expansion plan fully funded
� STRONG AND ENHANCED CAPITAL STRUCTURE
� Investment grade rating
� Strong liquidity
� Extended debt maturity profile
Key Takeaways
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