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AES Gener Corporate Presentation
1Q-2018
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 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
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)
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.
• All figures are expressed in US$ and rounded to the nearest million, unless indicated otherwise.
IMPROVING LIVES IN
Chile,Colombia AND
Argentina
AES Gener Is Energized By ARegional Workforce Of
+1,500 PEOPLE
RECOGNIZED AS A
Great PlaceTo Work in
CHILECOLOMBIAARGENTINA
Founded In 1981And Acquired byThe AES Corporation in 2000,Who Currently owns 66.7%
Named to
Dow JonesSustainabilityIndex for Chile
LISTED ON
Santiago StockExchange
AES Gener at a GlanceLeading power generation company controlled by AES Corporation
5,063 GROSS MWin operation
3,4001,020
643
531 GROSS MWunderconstruction(Alto Maipo Project in Chile)
TechnologiesCoal 3,029 MWHydro 1,291 MWGas/Diesel 709 MWOthers 34 MW
$8.3B
$812M
$3.7B
$2.3B
RATED
Baa3 / BBB- / BBB- BY
MOODY’S S&P GLOBAL FITCH RATINGS
Market ShareChile 27% by generationColombia 5% by generationArgentina 3% by generation
Commercial Business Largely ContractedEFFICIENT GENERATION CONTRACTEDWITH AN AVERAGE LIFE OF 10 YEARS
MARKET CAPAS OF May 17, 2018
EBITDALTM 1Q-2018
TOTAL ASSETSOWNED & MANAGED
CONS. DEBT1Q-2018
Market share based on 1Q-2018 Generation figures
Index
1. Highlights
2. Company Overview
3. Growth Projects
4. Financial Review
5. Appendix - Distribution Companies PPA Auctions
6. Appendix - About The AES Corporation
Highlights2018 First Quarter
1
Highlights1
6
Record 1Q-2018 EBITDA $208 mn,10% increase
LTM EBITDA $812 mn
70% Net Income
growth boosted by
improvement across all
markets reaching
$79 mn
Annual Shareholders
meeting on April 26th
Approved dividends
~$185 mn for 2018
Energia Base tariff step
up in Argentina
2018 First Quarter
Highlights (cont’d)1
7
Commitment not to build new coal-fired power plants and develop renewables to reduce carbon intensity of our portfolio
Continue securing
PPAs with C&I
customers
Secured green tax
pass-through with
important customers
Closing EPC contract
for Chivor life
extension Project
Colombian regulator
drafting framework for
long term PPAs for
renewables
Submitted request for
environmental
approvals to develop
desalination plants
adjacent to our
Ventanas and
Guacolda Plants
2018 First Quarter
Highlights (cont’d)
Largest Energy Producer In Chile1
8
ChileSEN
~19TWh
AES Gener27%
AES Gener
maintains leading
position as largest
energy producer in
Chile providing
27% of gross
generation during
1Q – 2018
Highlights (cont’d)We continue advancing with non-core assets sale process to strengthen the company’s capital structure
1
Electrica Santiago (ESSA) Assets Transmission Assets
Accepted an offer to sell 750MW for $300mn to Generadora
Metropolitana Spa (JV between EDF and AME)
Attractive valuation on assets that are not essential to the
execution of our long term strategy
Proceeds will be used to prepay debt, strengthen liquidity
and growth
Conditions precedent were met. Closing expected in May
2018
AES Gener owns ~1,500 kms of transmission lines, includingthe Interandes international line
Launched a process to sell regulated transmission assetsowned by AES Gener, not essential to the execution of thelong term strategy
Shortlisting binding offers, expected to close during 2H-2018
750MW in gas/diesel fired assets
Nueva Renca379MW
Renca100MW
Los Vientos132MW
Santa Lidia139MW
316 kms of transmission line assets to be sold
132 kms
under
National
Trunk System
154 kms
under Zonal
System
30 kms in
Dedicated
System
9
Highlights (cont’d)Alto Maipo
1
Construction continues moving forward
More than 4,700 workers
12 active work fronts
Overall project progress of 64%
Total tunnel progress of 52%
39.4 km of 75.9 km
Completion of Las Lajas Cavern and Headrace tunnel
Construction Update Project Works - Las Lajas Cavern
Note: Construction progress as of May 2nd , 2018
10
Highlights (cont’d)
Alto Maipo1
Summary of May 2018 Restructuring
11
CHANGE INRISK PROFILE
Lump sum fixed price contract with
Strabag, including guaranteed completion
dates backed by:
• $300mn Letters of Credit
• Corporate Guarantee from Strabag SE
Transfer of Geological and construction
risks
Strong incentives for early completion
COD Las Lajas & Alfalfal II expected in
2020
PROJECTCAPITALIZATION
Fully funded plan, considering:
• $3,048mn construction cost
• Additional $392mn payable over 20-
year after COD
Lenders commitment for US$823 mn,
including incremental funding of
$135mn
Incremental shares to Strabag if certain
milestones are met
AES GENER COMMITMENTS
AES Gener will contribute:
• $200mn based on progress and debt
disbursements
• Up to $200mn towards completion
and for project costs or to prepay
debt
No additional debt to be issued at AES
Gener level
Highlights (cont’d)
Alto Maipo1
Project Capitalization as of Today
12
Financial Debt Equity
619
1,019
346
346
170
+510
Equity
Commitments, May
2018 Budget
1,535
Equity
Contributed as of
April, 2018
1,025
60
StrabagAES Gener MLP
628 628
688 688
135
Debt
Commitments
May 2018 Budget
+135
Debt Commitments
March 2017
Restructuring
1,4511,316
Incremental CommitmentDisbursed Undrawn Commitment
Highlights (cont’d)
Alto Maipo1
Key Objectives Achieved
13
COMPLETERESET
Significant risk reduction
Project recourse to Strabag
Guaranteed Completion
Strong incentives for early
completion
CAPITALSTRUCTURE
Committed to strengthen
capital structure to maintain
Investment Grade ratings
No increase in Corporate
Debt
Equity Commitments funded
with cash from operations
STRATEGICPROJECT
Key for strengthening power
supply for Santiago
Zero emission capacity,
greening our Portfolio
Alto Maipo along with
existing assets creates a 802
MW hydroelectric complex
Lasts more than 100 years
Company Overview
2
Key InvestmentConsiderations
2
LEADING POSITIONLargest energy producer in Chile, and major producer in Colombia, with one of the most efficient plants in Argentina
DIVERSIFICATIONOne of the most diversified Latin American generator in terms of geographical footprint and technology
HIGH GROWTHOutgrown peers in addition of new capacity and secured future growth through fully-financed pipeline
STABLE CASH FLOWSLargely contracted US dollar-denominated revenue streams with built in fuel and inflation pass-through provisions
STRONG CAPITAL STRUCTURE A successful financing history committed to investment grade rating
15
Assets OverviewWe operate a 5,063 MW diversified portfolio in terms of market and technology
2
CHILE (3,400MW)
COLOMBIA (1,020 MW)
ARGENTINA(643 MW)
Guacolda, 760MW
5 coal unitsLocated in HuascoStart of operations:1995/1996/2009/2010/2015
Hydro Plants271MW
4 run of river hydro units
Angamos, 558MW
2 coal unitsLocated in MejillonesStart of operations:2011
Cochrane, 550MW
2 coal unitsLocated in MejillonesStart of operations:2016
Andes Solar, 21MW
PV solarAdjacent to Andes substationStart of operations:2016
Chivor, 1,000MW
10 hydro unitsLocated in BocayaStart of operations:1977/1981
Tunjita, 20MW
1 hydro unitLocated in BocayaStart of operations:2016
Termoandes, 643MW
Combined CycleTurbines: 2 gas, 1 steamLocated in SaltaStart of operations:1999
ENERGY STORAGE (Chile)
Energy Storage52MW
3 units in Norgener, Angamos and Cochrane
Backup Plants, 79MW
Laguna Verde 66MW DieselLaja 13MW Biomass
Norgener, 277MW
2 coal unitsLocated in TocopillaStart of operations:1995/1997
Ventanas, 884MW
4 coal unitsLocated in ValparaisoStart of operations:1964/1996/2010/2013
16
29%
61%
10%
$1,749mn
Regulated Unregulated Spot
MarketsOverview
2
CHILE ($598mn EBITDA) COLOMBIA ($178mn EBITDA)
ARGENTINA ($36mn EBITDA)
SE
N
100%
Hydro
3,733GWh
SIN
SA
DI
SEN ASSETS, 3,400 MWNORGENER, 277 MW, coalANGAMOS, 558 MW, coalCOCHRANE, 550 MW, coalANDES SOLAR, 21MW solar PVVENTANAS, 884 MW, coalGUACOLDA, 760 MW, coalHYDROS, 271 MWOTHERS, 79 MW, diesel, biomass
SADI ASSETS, 643 MWTERMOANDES, 643 MW, gas
SIN ASSETS, 1,020 MWCHIVOR, 1,000 MW, hydroTUNJITA, 20 MW, hydro
17
GENERATIONENERGY SALES
91%
0.6%
9%
14,727GWh
Thermal Other Hydro
55%
45%
$453mn
Contract Spot
GENERATIONENERGY SALES
GENERATIONENERGY SALES
51% 49%
Contract Spot
$168mn
100%
Thermal
4,567GWh
Ratings System Data Energy Sales Generation by Fuel type
S&P
A+23,752 MW
Installed
Capacity
+2.46%National Unregulated
Demand Growth (CAGR
2018-2030)
+3.06%National Regulated
Demand Growth (CAGR
2018-2030)
Moody’s
Aa3
75,094 GWh
Generation
Fitch
A
Regulated
48%
Unregulated
52%
MarketsOverview
2
*Chile Expected Energy Sales Growth (CAGR 2030) source: Fijación De Precios De Nudo De Corto Plazo Informe Técnico Definitivo (January, 2018)
LTM 1Q-2018 System Data for Chile
Chile~18 M
inhabitants~$267B
GDP as of 2017
18
69,212GWh
Thermal
59%
Hydro
30%
Other
11%
75,094GWh
Ratings System Data Energy Sales Generation by Fuel type
S&P
BBB-
Moody’s
Baa2
Fitch
BBB
16,853 MW
Installed
Capacity
SIN Demand Growth
(CAGR 2018-2030)
67,039 GWh
Generation
S&P
B+
Moody’s
B2
Fitch
B
37,186 MW
SADI Installed
Capacity
SADI Demand Growth
(CAGR 2016-2030)
136,988
GWh
SADI Generation
Thermal
65%
Renewables
2%
Hydro
29%
Nuclear
4%
Regulated
69%
Unregulated
31%
MarketsOverview
2
*SIN Expected Energy Sales Growth (CAGR 2030) source: UPME April 2018 Forecast.
*SADI Expected Energy Sales Growth (CAGR 2030) source: MINEM 2030 Energy Scenario Report - Trend Scenario (December, 2017)
LTM 1Q-2018 System Data for Colombia and Argentina
Colombia~49 M
inhabitants~$310B
GDP as of 2017
Argentina~44M
inhabitants~$635B
GDP as of 2017
19
+3.10%
+3.36%
65,978GWh
132,612GWh
67,039GWh
Thermal
16%
Hydro
84%
136,988GWh
Residential
42%
Industrial
29%
Comercial
29%
EBITDA Countries Technology Fuel
Portfolio OverviewWe operate a 5,063 MW diversified portfolio in terms of market and technology
2
20
74%
22%
4%
Chile Colombia Argentina
$812mn
67%
20%
13%
Chile Colombia Argentina
5,063 MW
74%
26%
Thermo Renewable
60%
25%
13%
1% 1%
Coal Hydro
Gas Diesel
Solar/Biomass
5,063 MW 5,063 MW
0
5,000
10,000
15,000
20,000
25,000
30,000
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028G
Wh
per
Year
Regulated Unregulated Guacolda
Commercial Strategy for ChileWe operate a 5,063 MW diversified portfolio in terms of market and technology
2
10 year Avg.
Contract Life
CustomersCommercial strategy aims to maximize cash flow while minimizing volatility
Optimal contracted position seeks to match contracted energy with long term efficient generation
Contract customers include regulated customers (distribution companies) and unregulated customers (mining, commercial and industrial)
Contracts include Price
indexation mechanisms
(coal and US CPI) and
pass-through provisions
(regulatory risks)
~10 years average
life of outstanding
contracts
21
Distribution
25%
Industrial
10%
Mining
65%
Commercial Strategy for Colombia and Argentina(LTM 1Q-2018 Figures)
2
Colombia
Argentina
63%
37%
ENERGY SALES
Contract Spot
~80% of Expected
Generation
Medium Term
Contracts
(1-4 Years)
Remaining
Generation
Spot and Frequency
Regulation Sales
Firm Energy
(~3,000 GWh)
Reliability Charge
Revenue
Contract EnergyEnergía Plus
Contracts
Remaining
Generation
Energía Base
Spot Sales to ISO
22%
78%
ENERGY SALES
Contract Spot
6,239
GWh
4,567
GWh
22
27953 74 102
235
93261 261
92
102
471 444
606
248
806 807
2015 2016 2017 LTM 1Q-2018
Equity Contribution Dividends Paid Debt Payment
426 581 591 598
246 172 174 178 19 25 29 36 691
778 793 812 32% 34% 33% 32%
2015 2016 2017 LTM 1Q-2018
Chile Colombia Argentina EBITDA Margin
Strong Financial PerformanceIFRS (LTM 1Q-2018 Figures)
2
EBITDA & EBITDA margin Total debt and net debt / EBITDA
Total CAPEX Capital Allocation
23
1,788 2,198 2,387 2,388
1,5521,626 1,353 1,361
3,3403,824 3,741 3,749
4.4x 4.3x 4.4x 4.3x
2015 2016 2017 LTM 1Q-2018
PF/Non-Recourse Corporate Debt Net Debt/EBITDA
893
479 405 419
109
8392 85
1,002
562497 504
2015 2016 2017 LTM 1Q-2018
Construction Maintenance
AES Gener Debt ProfileTotal Debt as of March 31, 2018 $3,749 mn
2
AVERAGE COST 5.5%
AVERAGE LIFE 14 years
NETDEBT/EBITDA
4.3x (2.3x excluding non recourse debt)
CURRENCY 96% denominated in USD
RATE 93% at fixed interest rate
Amortization Schedule (US$ mn)
Debt Overview Debt by Type
64%
36%
Non-Recourse Debt$2,388 mn
$3,749mn
24
128 130 132 135 137 144 152 161
175314
193
2018 2026/2073
46
2025
162176
2019
22
2020
189 1.269
2021
25154
2022
31
2023
37
2024
518
303
1.787
449
175
354
Recourse Debt$1,361 mn
24
AngamosSummary of Historical Financials (US$mn)
2
Revenue EBITDA and EBITDA Margin
Credit Metrics CAPEX
25
238 252 277 305
44 5246 34
25
17 24284309
340363
2015 2016 2017 LTM 1Q-2018
Contracted Spot Other
111 122 105 117
39% 39%31% 32%
2015 2016 2017 LTM 1Q-2018
EBITDA EBITDA Margin
6.9x6.2x
7.3x6.6x
2.5x 2.8x2.4x 2.7x
2015 2016 2017 LTM 1Q-2018Net Debt/EBITDA EBITDA/Financial Expense
16
46 7
2015 2016 2017 LTM 1Q-2018CAPEX
GuacoldaSummary of Historical Financials (US$mn)
2
Revenue EBITDA and EBITDA Margin
Credit Metrics CAPEX
26
438381
493 494
2015 2016 2017 LTM 1Q-2018
Revenue
122 150 167 167
28%39% 34% 34%
2015 2016 2017 LTM 1Q-2018
EBITDA EBITDA Margin
6.3x 4.9x 4.1x 3.8x
3.9x
3.5x4.6x 4.7x
2015 2016 2017 LTM 1Q-2018
Net Debt/EBITDA EBITDA/Financial Expense
115
78
14 12
2015 2016 2017 LTM 1Q-2018
CAPEX
GrowthProjects
3
Successful Project Development and ConstructionPhase I 2007-2013: 1,677 MW of new capacity
3
BESS Angamos IBESS Norgener2 2
12 MW
Energy Storage
Start Date: Nov. 2009
20 MW
Energy Storage
Start Date: Dec. 2011
Guacolda III Guacolda IV4 4
152 MW
Coal
Start Date: Jul. 2009
152 MW
Coal
Start Date: Mar. 2010
Angamos I & II1
558 MW (2 units)
Coal
Start Date: Apr./Oct. 2011
1 2
Los Vientos3
132 MW
Diesel
Start Date: Jan. 2007
4
Ventanas III Ventanas IV6 7Santa Lidia5
139 MW
Diesel
Start Date: Apr. 2009
272 MW
Coal
Start Date: Feb. 2010
272 MW
Coal
Start Date: Mar. 2013
36
7
5
Antofagasta
Santiago
3,417
5,094
2007 2014
+49%
• Extensive experience in project development and execution on time and within budget
• 49% increase of installed capacity between
2007 and 2014
• Total investment of $3bn
28
Successful Project Development and ConstructionPhase II 2015-2020: 1,256 MW of new capacity
3
$4bn investment, fully funded
+21%
Guacolda V – 152 MW
Angamos Desalinization
Tunjita – 20 MW
Andes Solar – 21 MW
Cochrane – 532 MW
Alto Maipo – 531 MW
Guacolda V - COMPLETED
Construction Progress
152 MW
Coal
Start Date: Dec.
2015
Angamos Desal - COMPLETED
Desalination
plant
Andes Solar - COMPLETED
21 MW
Solar
Start Date: May
2016
Tunjita - COMPLETED
20 MW
Hydro
Start Date: Jun
2016
Cochrane - COMPLETED
550 MW (2 units)
Coal
Start Date: Oct
2016
Alto Maipo
531 MW
Run of River
Hydro
Progress: 64%
152
573
531
6.326
5.222
5.070
2015
5.222
2016
5.795
2020
5.795
29
Alto Maipo Project Overview531 MW run of river hydro located in Santiago, Chile
Overview Project Layout
2
1
Project LocationMetropolitan Region
1
2
Alfalfal II. 264MW Unit
Las Lajas. 267MW Unit
Tunnel
L1
VL-4
VL-8
VA-1
VA-2
VA-4
V5
V1
Technical Aspects Alfalfal II Las Lajas
Installed capacity (MW) 264 267
Number of units 2 2
Type of turbines Pelton Pelton
Voltage (kV) 12/220 12/110
Ownership Main Contractors
AES Gener93%
Strabag
7%
30
3
Alto Maipo Construction Status
2
1
1
2
Alfalfal II. 264MW Unit
Las Lajas. 267MW Unit
Tunnel
L1
VL-4
VL-8
VA-1
VA-2
VA-4
V5
V1
Las Lajas HeadraceTotal length 17km
Las Lajas TailraceTotal length 15km
Alfalfal HeadraceTotal length 27km
VolcanTotal length 14km
Alfalfal II TailraceTotal length 2km
As of May 2018
Overall Project completion: 64%
Total tunnel progres is ~39kms
12 work fronts
Las Lajas Cavern and Headrace tunnel completed in May
Tunnel Boring Machine(TBM)
Drill & Blast
31
3
Alto MaipoMarch 2017 Restructring
TBMCUTTER HEAD
32
3
836
2,053
2,513
171117
Original Equity
Total Sources
Original Debt
1,217
12
StrabagTotalSourcesPrior to
Restructuring
61
AES Gener MLP
99
Additional Debt
Other Financing Sources
+460mn
Alto MaipoProject Capitalization as of Today
TBMCUTTER HEAD
33
3
33
Financial Debt Equity
619
1,019
346
346
170
1,025
60
Equity Contributed
as of April, 2018
Equity Commitments,
May 2018 Budget
1,535
+510
AES Gener MLP Strabag
628 628
688 688
135
1,451
Debt Commitments
March 2017 Restructuring
Debt Commitments
May 2018 Budget
1,316
+135
Undrawn CommitmentDisbursed Incremental Commitment
Alto MaipoWhat Happened after March 2017
Default under
financing agreement
CNM stopped works
Lower Productivity By Strabag
34
TUNNEL BORING MACHINE3
Worse Than Expected
Rock Quality
Distribution
Inability To Draw
Project Finance
Debt
Alto Maipo: Key Changes to Mitigate Risks
35
3
CHANGE INRISK PROFILE
Lump sum fixed price contract with
Strabag, including guaranteed completion
dates backed by:
• $300mn Letters of Credit
• Corporate Guarantee from Strabag SE
Transfer of Geological and construction
risks
Strong incentives for early completion
COD Las Lajas & Alfalfal II expected in
2020
PROJECTCAPITALIZATION
Fully funded plan, considering:
• $3,048mn construction cost
• Additional $392mn payable over 20-
year after COD
Lenders commitment for US$823 mn,
including incremental funding of
$135mn
Incremental shares to Strabag if certain
milestones are met
AES GENER COMMITMENTS
AES Gener will contribute:
• $200mn based on progress and debt
disbursements
• Up to $200mn towards completion
and for project costs or to prepay
debt
No additional debt to be issued at AES
Gener level
Key Objectives Achieved
36
3
COMPLETERESET
Significant risk reduction
Project recourse to Strabag
Guaranteed Completion
Strong incentives for early
completion
CAPITALSTRUCTURE
Committed to strengthen
capital structure to maintain
Investment Grade ratings
No increase in Corporate
Debt
Equity Commitments funded
with cash from operations
STRATEGICPROJECT
Key for strengthening power
supply for Santiago
Zero emission capacity,
greening our Portfolio
Alto Maipo along with
existing assets creates a 802
MW hydroelectric complex
Lasts more than 100 years
Summary of May 2018 Restructuring
37
3Compared to March 2017 Budget
May 2018
RestructuringMarch 2017 Budget
PROJECT PROGRESS 64% 50%
TUNNELING PROGRESS 39.4 km 23 km
EQUITY COMMITMENTS $1,535mn $1,105mn
DEBT COMMITMENTS $1,451mn $1,316mn
PROJECT STRUCTURE Recourse to Strabag -
Summary of May 2018 Restructuring
38
3Compared to March 2017 Budget
May 2018
RestructuringMarch 2017 Budget
CONSTRUCTION CONTRACTLump-Sum, Fixed Price
ContractBill of Quantity
GUARANTEED COMPLETION DATE Yes No
PARENT COMPLETION GUARANTEEYes
from Strabag SE (BBB)No
LETTER OF CREDIT $300mn $167mn
SUPPLIER FINANCING $392 mn payable in 20 years $31mn payable first
FinancialReview
4
Consolidated Financials4
Key Financials (US$ mn) 1Q -2018 1Q -2017 Var. (%)
Operating Revenue 656 557 18%
Gross Profit 170 146 16%
EBITDA 208 189 10%
EBITDA Margin 32% 34%
Net Income 79 47 70%
EBITDA BY MARKET
First Quarter
2018 First Quarter
40
73%
76%
22%
22%
5%
189
1Q-2018
2%1Q-2017
208Chile
Colombia
Argentina
EBITDA Bridge4
7.1
4.9
6.9
1Q - 2017 1Q - 2018
2018 First Quarter
First Quarter
EBITDA Increased 10%, $19 mn
189
208
41
Chile1Q-2018 EBITDA Increased by $7 mn
4
Began the supply of additional PPAs
Reached agreements for green tax pass-through, reducing its impact
Nueva Renca maintenance activities
EBITDA Variation (1Q-2018) Electricity Revenue Breakdown (1Q-2018)
RegulatedCustomers
26%
Spot7%
UnregulatedCustomers
67%
$438mn
Main Drivers of 1Q-2018
422017
7,1
1Q Var 2018
144
151
+5%
Colombia1Q-2018 EBITDA Increased by $5 mn
4
Higher contract revenue at higher prices, partially offset by lower physical sales
Favorable impact from COP appreciation
Lower Ancillary Services Sales
EBITDA Variation (1Q-2018) Electricity Revenue Breakdown (1Q-2018)
Contract Sales65%
Spot35%
$96mn
Main Drivers of 1Q-2018
43
4.9
2017 1Q Var 2018
41
46
+12%
Argentina1Q-2018 EBITDA Increased by $7 mn
4
Increase in capacity prices in the Energía Base Market (Resolution 19/2017)
Higher prices and volume with Energía Plus customers
Higher generation as a result of lower maintenance activities
EBITDA Variation (1Q-2018) Electricity Revenue Breakdown (1Q-2018)
Contract Sales46%
Energía Base54%
$41mn
Main Drivers of 1Q-2018
44
6.9
2017 1Q Var 2018
4
11
+163%
Net Income41Q-2018, Attributable to AES Gener (US$ mn)
EBITDA Variance
DepreciationInterestExpense
Non-Controlling
Interest
FX Gains/Losses
IncomeTax
45
EquityEarnings
OtherNon-
Operating Variances
47
79
18.9
18.8
6.4
2.0
1Q-2017
1.8
0.6 0.7 1.1
1Q-2018
Cash Flow and Liquidity41Q-2018 (US$ mn)
Quarterly Cash Flow Liquidity as of March 31, 2018
Operating CF
Investing CF
Financing CF
FXVariation
Undrawn Committed
Facilities$250 mn
Cash and Cash Equivalents $235 mn
$485mn
46
276
235
48% 52%
84
126
2
Dec-17
3
Mar-18
Appendix5Chilean Regulated Power Auctions
Distribution Companies PPA AuctionsLast Auctions
5
Year of the Auction
2014 2015 2016 2017 2018 2019 2020
Start of Supply 2016-2019 2019 2021-2022 2024 2023 2024 2026
Tenor 15 20 20 20 20 20 20
13.0 1.2 12.4 2.2Auction Size(TWh-Year)
Auction Launch(Year)
2013 2015 2015-01 2017-01 2017 2018 2019
7.0 7.0 4.5
Avg. Awarded Price 94.7 $/MWh
(92% awarded w/o change in law)
Avg. Awarded Price 79.9 $/MWh
Avg. Awarded Price 47.6 $/MWh
(100% awarded)
Avg. Awarded Price 32.50 $/MWh
(100% awarded)
Unconfirmed Figures
48
Distribution Companies PPA AuctionsMain Changes on Terms & Conditions
5
2015-01 Auction 2017-01 Auction
Energy Offered 12,400 GWh per year 2,200 GWh per year
PPA Tenor 20 years, starting 2021-2022 20 years, starting 2024
Power Blocks Daily blocksDaily blocks + seasonal blocks for
hydro (new, totaling 600 GWh)
Guarantees
Initial~$4,000 per GWh
(CLF$100)
Performance~$12,000 per GWh
(CLF$300)
Initial~$8,000 per GWh
(CLF$200)
Performance~$24,000 per GWh
(CLF$600)
Fines for Delays(for new projects, every two milestones delay)
~$200 per GWh(CLF$5)
~$1,200 per GWh(CLF$30)
49
Appendix6About The AES Corporation
MISSION
Improving lives by providing safe, reliableand sustainable energy solutions in every market we serve
GLOBAL ACCESS TO
Construction expertise and contractors
Financing
Equipment and fuel suppliers
Engineering, consulting and insurance
The AES Corporation OverviewWe are part of The AES Corporation, one of the leading power companies in the world
33,965 GROSS MWin operation*
3,930MW under construction
GENERATION
TENCHNOLOGYGAS 37%COAL 32% RENEWABLES 27%OIL/DIESEL/PET COKE 4%
$11B $33B
FORTUNE 200GLOBAL POWER COMPANY
FOUNDED IN 1981NAMED TO
DOW JONESSUSTAINABILITYINDEXfor North America for the Fourth Year in a Row (2014-2017)
LISTED ON
NYSE
AES SERVES OVERCUSTOMERS
TOTAL ASSETS OWEND & MANAGED
TOTAL REVENUES
* 24,104 proportional MW. Proportional MW is equal to gross MW of a generation facility multiplied by AES’ equity ownership percentage in such facilitySource: The AES Corporation Fact Sheet as of May 8, 2018, The AES Corporation Financials as of December 31, 2017.
6UTILITY COMPANIES
+ 2M
15 COUNTRIES
4MARKET-ORIENTED STRATEGICBUSINESS UNITS
SOUTH AMERICA, MCAC,
USA & UTILITIES,
EURASIA
AES IS ENERGIZED BY A
GLOBAL WORKFORCE
51
6
The AES Corporation OverviewAES has a strong regional presence of 13,010 MW¹ in the region, owning assets in Argentina, Brazil, Chile and Colombia
6
Sources: The AES Corporation Fact Sheet as of May 8, 2018, The AES Corporation Financials as of December 31, 2017.
1) Including Electrica Santiago plants: Nueva Renca, Renca, Los Vientos and Santa Lidia. AES Gener announced the sale of this business in December 2017
2) Including AES Gener’s TermoAndes facility located in Argentina.
Andes SBU
Brazil SBU
We leverage on our relationship with AES in negotiations with suppliers, regulators and creditors, and benefit from their technical expertise, and global best
practices in optimizing performance
South America Overview
AES Gener and AES Argentina Generación share the same senior leadership
Largest energy producer in Chile, a
leading player in Argentina and a major
producer in Colombia and Brazil
One of the most diversified LatAmgeneration players in terms of geographical footprint and technology
Owns InterAndes transmission line,
connecting Chile and Argentina
28%
32%
32%
8%
AES Argentina 3,461 MW + 2 fuel procurement facilities
AES Gener643 MW
1,020 MW
4,150 MW + 52 MW Energy Storage
AES Brasil 3,684 MW
AES ServiciosAmerica
Service center in Buenos Aires provides Finance
and HR transactional services to AES affiliates
Colombia 1,020 MW
Chile 4,202 MWArgentina4,104 MW²
Brazil3,684 MW
13,010
MW
52
AES GenerCorporate Presentation
