3Q-2018 EARNINGS CALL - AES Gener · Earnings Call. HIGHLIGHTS 2018 Third Quarter 1. 3Q-2018 $232mn...
Transcript of 3Q-2018 EARNINGS CALL - AES Gener · Earnings Call. HIGHLIGHTS 2018 Third Quarter 1. 3Q-2018 $232mn...
3Q-2018EARNINGS CALL
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• 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
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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
or commission the facilities or auxiliary facilities by the agreed-upon date; (v) opposition by local and/or international political, environmental and ethnic groups; (vi)
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“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—
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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
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HIGHLIGHTS
FINANCIAL REVIEW
KEY TAKEAWAYS
Q&A
AGENDA2018 Third Quarter
Earnings Call
HIGHLIGHTS2018 Third Quarter
1
3Q-2018
$232mn
+27%
LTM 3Q-2018
$886mn
+12%
HIGHEST
EVER
EBITDAGROWTH
5
Boosted bySTRONGER FINANCIAL
RESULTS
LOWER INTEREST
EXPENSES
SALE OF ELECTRICA
SANTIAGO
LTM 3Q-2018
$350mn
+89%
6
EARNINGSGROWTH
$583
$791$888 $850
2015 2016 2017 LTM 3Q-2018
Sustained cash flow
growth
STRONG
CASH FLOWGENERATION
7
FFO
ON TRACK WITH
DIVIDEND DISTRIBUTIONSFOR 2018
8
$55mn
PAID
$130mnPAYABLE
NOVEMBER 29
$185mn2018
DIVIDENDS
9
ADVANCING WITH STRATEGY EXECUTION
COMMERCIAL OPPORTUNITY PIPELINEACCELERATING A GREENER ENERGY FUTURE
Greentegra
Take or Pay PPAs
~10.5 TWh/year
Fixed charge +
Pass-through of variable costs
Conventional PPAs
~3.2TWh/year
Fixed price
1.1 TWh18
YEARS
Renewable PPAs
~2.3TWh/year
Fixed price
KEY PPASIGNED
Wind2,272 MW
Solar369 MW
Desal+2,000 l/s
Hydro531 MW
Underconstruction
Underdevelopment
Underdevelopment
WATERDESALINATION
ADVANCING WITH STRATEGY EXECUTION
+3,100 MW PIPELINEACCELERATING A GREENER ENERGY FUTURE
10
70%Complete
46kmTunnels Excavated
61% Complete
$48mnEQUITY CONTRIBUTIONS
PENDING
During Construction
Las Lajas Power House October 2018
ADVANCING WITH STRATEGY EXECUTION
ALTO MAIPO ON TRACKACCELERATING A GREENER ENERGY FUTURE
11
$220MN
Expected to close in 4Q-2018
SALE of Regulated Transmission Lines (316 km)
$307MN
Closed Transaction
SALE of Eléctrica Santiago
ADVANCING WITH STRATEGY EXECUTION
EXECUTING ASSET SALESPORTFOLIO MANAGEMENT
12
ADVANCING WITH STRATEGY EXECUTION
STRENGTHENING CAPITAL STRUCTUREONGOING DEBT PREPAYMENT PROGRAM
Net Debt/
EBITDA
3.9x
$528mnDEBT
PREPAID
13
Financial Review2Third Quarter 2018 Earnings Call
Key Financials ($ 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%34%60%
32%64%3Q-2017
232
182
Chile ArgentinaColombia
EBITDA BY MARKET
Third Quarter
29%
562
6%
YTD-2017 72% 25% 3%
65%YTD-2018 655
15
2018 THIRD QUARTER AND YEAR-TO-DATE
CONSOLIDATEDFINANCIALS
25
48
20
20182017
655
562
16
2018 YEAR-TO-DATE
EBITDA BRIDGE16% INCREASE, $93 MN
24403
143
428
2Q Var
151144
7
2017
140
20181Q Var
6
3Q Var
137
116
+6%
CHILE
Main Drivers
3Q-2018
EBITDA Variation
YTD-2018
Year-to-Date EBITDA increased by $25mn
3Q 1Q2Q
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
2221
65
58
795
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 $20mn
19
Main Drivers
3Q-2018
19
EBITDA Variation
YTD-2018
4.211.14.2
6.9
8.0
5.1
12.2
8.3
13.4
20182Q Var2017 1Q Var 3Q Var
37
17
+119%
3Q 1Q2Q
LARGER CONTRACT VOLUME
HIGHER CAPACITY PRICES
LOWER TRANSMISSION COSTS
Equity Earnings
93
49
104 64
9M-2017
11
8
5
10
5
9M-2018
EBITDA Variance
DepreciationInterest Expense
Non-Controlling
Interest
FX LossesIncome
TaxOther Gains
OtherNon-
Operating Variances
114
279
20
2018 YEAR-TO-DATE ($MN)
NET INCOMEATTRIBUTABLE TO THE PARENT
Mainly driven by ESSA sale
Year-to-Date Cash FlowLiquidity
as of September 30, 2018
$533mn
Cash andCash Equivalents
$283 mn
53%
UndrawnCommitted Facilities
$250 mn
47%231
142
76
Financing CFDec-17 Operating CF Investing CF FX Impact Sep-18
283276 6
21
2018 YEAR-TO-DATE ($MN)
CASH FLOWAND LIQUIDITY
$3,697mn
AVERAGE COST
AVERAGE LIFE
NET DEBT/EBITDA
RATE
5.7% 14Years
3.9x(Consolidated)
94%Fixed Rate
Recourse Debt$1,304 mn
35%
Non-Recourse Debt$2,393 mn65%
60121 123 126 128 153 148 158
22446
214 193
2018 2025
516
2019
22
2020 2021
24
2022
30
2023
15235
2024
351
1,376
2026/2073
284
167 145
340
183 183
1,892
22
Amortization Schedule ($mn)
AES GENER
DEBT PROFILE$3,697MN AS OF SEPTEMBER 30, 2018
2.0x(Recourse Debt)
Key Takeaways3Third Quarter 2018 Earnings Call
HIGHEST
EBITDAEVER
ALTO MAIPOON TRACK
24
THIRD QUARTER 2018
KEY TAKEAWAYSEARNINGS CALL
EXECUTINGour
GreentegraSTRATEGY
S U C C E S S F U L L Y
3Q-2018EARNINGS CALL