CORPORATE PRESENTATION. October,

Transcription

1 CORPORATE PRESENTATION October,

2 COMPANY OVERVIEW

3 KEY STATISTICS Data as of June 30, 2016, unless otherwise noted 5,795 MW of installed capacity(1)(3)(4) US$2.8bn market capitalization(2) 797 MW of fully funded capacity under construction US$1.0bn remaining capex of the U$4bn 2nd expansion phase fully funded 100% % of baseload energy in Chile sold under long-term PPAs US$725mm years of avg. remaining PPA life 100% AES Corp Stake (AFP s 19.4% stake) BBB-/Baa3 LTM EBITDA of ownership of the exclusive transmission line between Chile (SING) and Argentina (SADI) credit ratings (S&P, Fitch, Moody s) (1) (2) (3) (4) Includes Guacolda As of October 24, 2016 Includes 21 MW Andes Solar started commercial operations on May 28 th Includes 266 MW Cochrane Unit 1 started commercial operations on July 9 th and Unit 2 which started on October 12th 3

4 ATRACTIVE MARKETS CHILE Ratings System Data Expected Energy Sales Growth (CAGR ) Energy Sales (GWh) Generation by Fuel Type Installed capacity 4,008 MW 4.6 % 12% 6% Generation 18,797 GWh 88% 94% SING S&P AA- Regulated Unregulated Thermal Other Moody s Aa3 Fitch A+ Installed capacity 15,597 MW Generation 52,901 GWh 4.0 % 30% 70% 48% 13% 39% Regulated Unregulated Hydro Thermal Other SIC Source: Note: CNE data as of February 2016 Energy sales expected growth from CNE (ITD as of April 2016) Excludes TermoAndes which today exclusively sells to Argentina (SADI) 4

5 ATRACTIVE MARKETS (Cont.) COLOMBIA AND ARGENTINA Ratings System Data Expected Energy Sales Growth (CAGR ) Energy Sales (GWh) Generation by Fuel Type Colombia S&P Moody s Fitch BBB Baa2 BBB Installed capacity 16,420 MW Generation 66,549 GWh 3.2 % 33% 67% Regulated Unregulated 28% 5% 67% Hydro Thermal Other S&P B- Moody s B3 Fitch B Installed capacity 33,494 MW (*) Generation 135,215 GWh 3.5 % 40% 13% 47% Large Customers Residential Commercial 35% 4% 61% Hydro Thermal Other Argentina Source: XM, data as of December 2015 for Colombia Cammesa and Private Consultants for Argentina. (*) Include mobile plants and commissioning capacity 5

6 LEADING POSITION #1 generation player in Chile 30% 26% 17% 12% 14% (1) ENEL (2) COLBUN ENGIE Others Efficient player in Colombia 22% 19% 16% 20% 10% 8% 5% ENEL (2) EPM ISAGEN CELSIA (3) GECELCA Others Note: In GWh, data as of June 30, 2016 (1) Includes 100% on Gualcoda s, (2) ENEL includes Endesa assets in Chile and in Colombia (3) Celsia includes EPSA 6

7 DIVERSIFIED GENERATION PLATFORM EBITDA LTM - By electric system Revenues By customers Total Chile 66% SIC 40% SING 26% US$ 725mn (*) SIN 30% Unregulated 57% Spot 9% US$1.5bn (*) Regulated 34% SADI 4% Installed capacity - By fuel type Hydro 21% Spot 58% US$0.5bn Contract 42% Biomass 0% Diesel 1% 5,529 MW Coal 54% 0% 0% Natural Gas 24% Spot 42% US$0.1bn Unregulated 58% Note: Figures as of June 30, 2016 SIC: Sistema Interconectado Central SING: Sistema Interconectado del Norte Grande (*) LTM figures as of June 30, % 7

8 GROWTH STRATEGY Phase I: Successful and disciplined growth strategy 1,829 MW of new capacity in Chile, since 2007 Expansionary Projects Executed (~US$3bn) +54% 1 Angamos I & II 2 BESS Norgener 2 BESS Angamos I 13 (*) Antofagasta 545 MW (Coal) (2 units) 4 Copiapo 12 MW (Battery) 20 MW (Battery) 5,057 Angamos Desal 3 Los Vientos Guacolda III 4 Guacolda IV 3, accounting for ~21% of the Chilean growth 132 MW (Diesel) Santiago MW (Coal) 152 MW (Coal) 4 Guacolda V 21% 152 MW (Coal) 10% 10% 7% 5 Santa Lidia 6 Nuevas Ventanas 7 Ventanas IV AES Gener Colbun EC-L Endesa Note: Data as of December 31, 2015 (*) Additional Capacity of Angamos 13MW 139 MW (Diesel) 272 MW (Coal) 272 MW (Coal) 8

9 GROWTH STRATEGY (Cont.) Phase II: Current expansion $4B Fully Funded CURRENT PROJECTS STATUS +25% Project Progress Solar Andes Completed 531 Tunjita Completed 13 (*) 152 Cochrane Unit 1 Completed 5,057 5,509 5,509 Cochrane Unit 2 Completed MW Alto Maipo 34.0% /2019 Guacolda V 152 MW Angamos Desalinization (*) Additional Capacity of Angamos Tunjita 20 MW Solar Andes 21 MW Cochrane 532 MW Alto Maipo 531 MW Note: Data as of December 31, 2015 (*) Additional Capacity of Angamos 13MW 9

10 WIDE ACCESS TO CAPITAL Successful financing for US$7 bn Sources of Financing for the Expansions (1) Amount (US$ mn) Equity Cash from Operations 720 Capital Increases 668 Partners 688 Debt Bonds International 300 Local 415 Banks Project Finance 4,505 (1) First and Second Phases: From /19 10

11 STRONG AND STABLE CASH FLOWS Adjusted EBITDA & EBITDA margin Total Debt and Net Debt / EBITDA (US$ mn) 5,000 1,000 (US$ mn) 28% 28% 29% 32% 33% 4.5x 4.6x 4,500 30% 3.7x 3,850 4, x 25% 2.8x 3,375 3, ,785 3,000 2, % 1, , ,500 1, % 2,000 1,487 1,214 1,156 1,500 10% ,000 2,140 5% 1,126 1,298 1,520 1, % 0 Total capex Capital allocation 1,200 (US$ mn) H16 LTM Chile Colombia Argentina Ebitda Margin PF / Non Recourse Debt Corporate Debt Net Debt / Ebitda H16 LTM Construction Maintenance Environmental (US$ mn) H16 LTM 100% 100% 100% 100% 94% H16 LTM Capex (1) Dividends Debt Paydown Div. Payout Ratio (1) Capex net of project financing x -3.0x 20%

12 STRONG CAPITAL STRUCTURE (US$ mn) Total Outstanding as of June 30, 2016 US$3,850 mn Average Cost 5.3% Average Life 14 years Net Debt/EBITDA 4.6x (2.5x excluding non recourse debt) 2,006 Non Recourse Debt 56% Recourse Debt 44% / % denominated in US$ 90.2% at fixed interest rate 12

13 CONTRACTED POSITION

14 GWh / year AES GENER CONTRACTED PORTFOLIO 25,000 High quality and diversified customer base Efficient portfolio fully aligned with our contracted capacity Only 1,300 GWh of expiring regulated contracts between 2021 and 2022, representing ~8% of our contracts (excl. Guacolda) Industrial Industria 5% l Distributio Distribution n 34% 33% 20,000 Mining 61% Contract avg. life: 11 years 15,000 Mining 59% 10,000 5, Non-Regulated Regulated Guacolda Source: AES Gener 14

15 REGULATED BID PROCESS SUMMARY The last bid was one of the largest for regulated customers (~14% of the total demand of the country by 2021) but several auctions are coming, which considers 23 TWh/year in the next 4 years Bid call Past Bids Current Bid (015-01) Upcoming Regulated Bids TWh/year Year of the Bid Supply starting Duration Avg. awarded price 94.7 US$/MWh (92% awarded w/o change in law) Avg. awarded price 79.3 US$/MWh (100% awarded) Avg. awarded price 47.6 US$/MWh (100% awarded) 15

16 RESULTS BID SUMMARY Supplier Energy GWh % of Total Awarded Levelized Price (US$/MWh) Technology ENDESA 5,852 47% 50.7 Hydro Mainstream 3,366 27% 41.2 New Wind Ibereolica 1,023 8% 51.0 New Wind WPD 953 8% 50.5 New Wind Acciona 418 3% 54.9 New Wind Solarpack 280 2% 29.1 New Solar Cox Energy 264 2% 52.7 New Wind OPDE 176 1% 38.1 New Wind AELA 88 1% 46.7 New Wind Besalco 10 1% 71.0 Hydro Total 12, % % of the offers Colbún Engie 50 Endesa 51% of the offers 10,500 16

17 KEY TAKEAWAYS

18 KEY TAKEAWAYS LEADER IN GENERATION IN CHILE Largest energy producer in Chile since 2014, contributing with 30% of the total country s generation during the 1H2016 Operational excellence proven by high availability of its facilities 1H2016 reported the best results achieved in the last five years DIVERSIFIED AND CONTRACTED ASSET PORTFOLIO Geographical, technological, customers base and fuel sources Dollarized and indexed Long Term PPAs, with a remaining average life of 11 years MOVING FORWARD WITH SECOND EXPANSION PHASE Guacolda Unit 5, Andes Solar, Cochrane Unit 1 and 2, and Tunjita CODs achieved Expansion plan fully funded STRONG AND ENHANCED CAPITAL STRUCTURE Investment grade rating Strong liquidity Extended debt maturity profile 18

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20 ANNEXES

21 1H16 HIGHLIGHTS AND RESULTS

22 KEY HIGHLIGHTS AES Gener continues to be the largest energy producer in Chile contributing 30% of the total generation 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 allowed company to increase generation of Nueva Renca Continued exporting energy from Chile to Argentina 22

23 KEY HIGHLIGHTS (Cont.) In Colombia, reservoir levels recovered as hydrology transitioned from El Niño to normal ~US$216mm in Liability Management transactions On July 28 th, S&P reaffirmed the BBB- credit Rating of the company, outlook Stable Company was awarded as winner of the 2016 Carlos Vial Espantoso Award Termoandes distributions from Argentina reached US$15.7mn 23

24 1H16 EARNINGS RESULTS Key Metrics (US$ mn) 1H H 2015 Var. Operating Revenues 1,099 1,073 2% Gross Profit % Total EBITDA % EBITDA margin 31% 29% Net Income % EBITDA by Market 1H H 2015 SING 31% SING 22% SIC 50% SIN 16% SIC 50% SIN 27% SADI 3% Note: Numbers rounded for the purpose of the presentation SADI 1% 24

25 400 ANGAMOS Summary of Historical Financials Revenues (US$ mn) EBITDA and EBITDA Margin (US$ mn) % 39% 38% 39% 40% % H16 LTM Contracted Spot Other H16 LTM Ebitda Ebitda Margin 0% Credit Metrics Capital Expenditures 8.0x 7.0x 6.0x 6.5x 5.8x 6.6x 6.8x 6.2x 4.2x 30 (US$ mn) x 4.0x 3.0x 3.0x 3.1x 3.0x 2.5x 2.7x x 5 1.0x 0.0x H16 LTM Net Debt / Ebitda Ebitda / Finance Expenses 1.2x H16 LTM 25

26 GUACOLDA Summary of Historical Financials Revenues EBITDA and EBITDA Margin (US$ mn) (US$ mn) 19% % % % 34% % H16 LTM Credit Metrics 8.0x 7.0x 7.0x 7.3x 6.3x 5.9x Capital Expenditures (US$ mn) H16 LTM Ebitda Ebitda Margin 342 0% 6.0x 5.0x 4.6x 4.8x 4.0x 3.0x 2.0x 3.7x 2.9x 3.9x 3.3x x 0.0x H16 LTM Net Debt / Ebitda Ebitda / Finance Expenses H16 LTM 26

27 DIVERSIFIED ASSET PORTFOLIO SIC coal fired plants: 1,644 MW Ventanas Complex 4 Units 884 MW - Coal Located in Valparaíso Region Start of operations: 1964/1977/2010/2013 Back up plants: 816 MW Nueva Renca 379 MW LNG / Diesel Located in Santiago Start of operations: 1997 Other plants: 418 MW Hydro run-of-river plants and renewables: 271 MW Guacolda Complex 5 Units 760 MW - Coal Located in Huasco (Northern part of the SIC) Start of operations: 1995/1996/2009/2010/2015 Alfalfal I 178 MW Hydro Run-of-River Located 50 km from Santiago Start of operations: 1991 Other plants: 106 MW 80 MW Other Hydro Run-of-River 13 MW - Biomass 27

28 DIVERSIFIED ASSET PORTFOLIO (Cont.) SING coal plants: 1,367 MW Norgener 2 units 277 MW Coal Located in Tocopilla Start of operations: 1995/1997 Angamos 2 units 558 MW Coal Located in Mejillones Start of operations: 2011 Colombia: 1,020 MW Argentina: 643 MW AES Chivor + Tunjita 10 Units 1,020 MW - Hydro Located in Boyacá, Colombia Start of operations: 1977/1981/2016 TermoAndes Combined Cycle (2 Gas Turbines and 1 Steam Turbine) 643 MW Natural Gas Located in Salta, Argentina Start of operations: 1999 Cochrane Unit 1 and 2 2 units 266 MW each Coal Located in Mejillones Start of operations: 2016 Battery storage (BESS) & Solar: 53 MW Battery Storage: 32 MW Norgener and Angamos Start of operations: 2009/2011 Solar: 21 MW Adjacent to Andes Substation Start of operations: