1Q 2016 EARNINGS CALLMay 9, 2016
2
Agenda
Key Highlights
Financial Review
Construction Projects
Key Takeaways
Q&A
AES Gener continues to be the largest energyproducer contributing 28.5% of the totalgeneration in the country
Company started exporting energy to Argentina
Unit 1 of Cochrane and the Andes Solar projectswere synchronized to the SING and have beguntheir commissioning tests
~US$200mn Angamos Liability Managementsuccessfully executed in April
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Key Highlights
AES Gener started to receive cash distributionsfrom its businesses in Argentina
Generation Tariffs in Argentina were adjusted by~43% in Argentinean Pesos
S&P downgraded the rating of Guacolda from BBB-to BB+ due to higher exposure to spot and drop inspot prices
Change in Ancillary Service Regulation in Colombia
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Key Highlights (Cont.)
FINANCIAL REVIEW
SIC
53%
SING
35%
SIN
9%
SADI
3%
Key Metrics (US$ mn) 1Q 2016 1Q 2015 Var.
Operating Revenues 556 533 4%
Gross Profit 121 131 (7%)
Total EBITDA 158 160 (1%)
EBITDA margin 28% 30%
Net Income 41 51 (20%)
EBITDA by Market
6
Consolidated Financials
SIC
54%
SING
26%
SIN
20%
1Q 2016 1Q 2015
Note: Numbers rounded for the purpose of the presentation
7
EBITDA Variation by Market (US$ mn)
160158
13
63
18
1Q15 SIC SING SIN SADI 1Q16
8
87 84
1Q15 1Q16
Electricity Revenues BreakdownEBITDA
-3%
SIC – EBITDA US$84 mn
Lower margin at Nueva Renca
Drop in Spot Sales, mainly due to decrease in prices
Lower Demand and prices from regulated contracts
Increase in unregulated customers demand
Regulated customer
57%
Unregulated customer
31%
Spot sales12%
US$209 mn
9
Electricity Revenues Breakdown
42
55
1Q15 1Q16
EBITDA
+31%
SING – EBITDA US$55 mn
Higher demand and better PPAs terms
Lower system over costs
Electricity exports to Argentina
Unregulated customer
94%
Unregulated - SADI
0%
Spot sales6%
Spot sales - SADI
0%
US$146 mn
10
SIN – EBITDA US$13 mn
Lower reservoir level at Chivor at the beginning of the year
Higher net spot purchases
Lower maintenance expenses
EBITDA Electricity Revenues Breakdown
31
13
1Q15 1Q16
-57%
Regulated customer
34%
Spot sales66% US$116 mn
11
SADI –EBITDA US$5 mn
Higher availability of the plant
Generation Tariff Increase
Lower energy sales under Energía Plus program
EBITDA Electricity Revenues Breakdown
-1
5
1Q15 1Q16
-
Unregulated64%
Spot sales36%
US$25 mn
12
Net Income (US$ mn)
(Attributable to AES Gener)
1Q15 EBITDA FX Impact EquityEarnings
Depreciation NetFinancing
Cost
Other IncomeTax
MinorityInterest
1Q16
51
41
2
3
6
3
11
28
LIQUIDITY: US$495mn
Cash and Cash
equivalents
54%Short
term time deposits
0%
Undrawn commited facilities
46%
13
Cash Flow (US$ mn)
267 266
98 14
3
116
Dec. 2015 OperatingActivities
FinancingActivities
InvestingActivities
FX Impact 1Q16
Total Outstanding as of March 31, 2016 US$3,539 mn
Average Cost 5.2%
Average Life 14 years
Net Debt/EBITDA 4.6x (2.5x excluding non recourse debt)
97.7% denominated in US$ 88.3% at fixed interest rate
69139 141 172 150
556
159 172 180
1,802
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025-2073
Recourse Debt49%
Non Recourse
Debt51%
14
Debt Profile (US$ mn)
CONSTRUCTION PROJECTS
16
+25%Project Progress
Guacolda 5 Completed
Angamos Desal Completed
Solar AndesCommissioning
Tests
Cochrane 97.8%
Tunjita 99.3%
Alto Maipo 28.8%
CURRENT PROJECTS STATUS
Guacolda V – 152 MW
Angamos Desalinization
Tunjita – 20 MW
Solar–Andes – 21 MW
Cochrane – 532 MW
Alto Maipo – 531 MW
Second Phase of Expansion
$4B Fully Funded
5.070 5.222
5.795
152
573
531
Angamos Desal
2015 2016 2018/2019
KEY TAKEAWAYS
EBITDA IN LINE WITH PREVIOUS YEAR Lower margin in Colombia offset by better results in Chile and Argentina
LEADER IN GENERATION IN CHILE Company contributed with 28.5% 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 and Unit 1 of Cochrane under commissioning tests
Expansion plan fully funded
World class partners: GIP, Mitsubishi, Antofagasta Minerals
STRONG AND ENHANCED CAPITAL STRUCTURE Investment grade rating
Strong liquidity
Extended debt maturity profile
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Key Takeaways
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