FOURTH QUARTER 2016 EARNINGS CALL February 27th, 2017

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1 FOURTH QUARTER 2016 EARNINGS CALL February 27th, 2017

2 AGENDA 2016 Q4 Financial Review Call Highlights Financial Review Construction Projects Key Takeaways Q&A 2

3 HIGHLIGHTS AES Gener Consolidates its Leadership as an Energy Solution Provider AES Gener achieved the highest EBITDA ever, $778m in 2016 US$ mn. $778 $691 $661 $671 $ DIVERSIFICATION INNOVATION RELIABILITY FLEXIBILITY AGILITY EXCELLENCE 3

4 HIGHLIGHTS (Cont d.) Largest Energy Producer in Chile AES Gener continues to be the largest energy producer in Chile contributing 31% of the total gross generation of the country in 2016 SIC ~53 GWh AES Gener 28% SIC + SING SING ~72 GWh AES Gener 31% ~19 GWh AES Gener 41% 4

5 HIGHLIGHTS (Cont d.) Successful Commissioning of 573 MW and Environmental Equipment MAY 28 TH 21MW ANDES SOLAR JUNE ENVIRONMENTAL EQUIPMENT OCTOBER 12 TH 266MW(*) COCHRANE UNIT FEBRUARY ENERGY EXPORT INTERANDES JUNE 30 TH 20MW TUNJITA JULY 9 TH 266MW(*) COCHRANE UNIT 1 OCTOBER 13 TH 20MW COCHRANE BESS (*): In January 2017, the Chilean ISO approved an increase in Cochrane s gross installed capacity to 550 MW 5

6 HIGHLIGHTS (Cont d.) Recovery Signs in Argentina Argentina s economic upturn coupled with key economic reforms and regulatory improvements in the power sector TERMOANDES (643 MW) Release of currency controls Reduction of Government subsidies Plans to increase installed capacity by 22.5 GW by 2025 Normalization of CAMMESA payments Tariff dollarization (Resolution 19/2017 of Feb 2 nd, 2017) 6

cost overruns for up to 22% including meaningful contingencies, subject to negotiation of definitive documents and

Minera Los Pelambres Incorporation of Strabag, the main contractor, as a minority shareholder at book value, with

7 HIGHLIGHTS (Cont d.) Advancing Forward with Restructuring Agreement for Alto Maipo Reached an agreement to secure funding for the cost overruns for up to 22% including meaningful contingencies, subject to negotiation of definitive documents and Lenders Credit Committee Approvals Main Terms of the Agreement: AES Gener s acquisition of the 40% stake from Minera Los Pelambres Incorporation of Strabag, the main contractor, as a minority shareholder at book value, with an initial stake of approximately 7% Amendment of the 20 year PPA with Minera Los Pelambres. All termination options were removed Changes to the terms and conditions of the current financing arrangements of the project 7

8 ANDES SOLAR 2016 FINANCIAL REVIEW

9 CONSOLIDATED FINANCIALS KEY FINANCIALS (US$ MN.) VAR. (%) Operating Revenues $2.286 $ % Gross Profit $625 $583 7% EBITDA $778 $691 13% EBITDA Margin 34% 32% 2% Net Income $261 $265-1% EBITDA BY MARKET SIN 22% SADI 3% SIC 44% SIN 36% SADI 3% $778 $691 SIC 39% SING 31% Note: Numbers rounded for the purpose of the presentation SING 22% 9

10 EBITDA BRIDGE EBITDA Increased by $87 mn. (13%) SIC SING SADI SIN

11 SIC MARKET EBITDA Increased by $65 mn. (24%) Higher demand from unregulated customers Higher hydro and coal generation Lower margin in Nueva Renca EBITDA VARIATION ELECTRICITY REVENUE BREAKDOWN % 338 Spot Sales 13% Regulated Customers 57% $ Unregulated Customers 30% 11

12 SING MARKET EBITDA Increased by $90 mn. (58%) Cochrane and Andes Solar started operations Higher availability due to lower maintenance activities Better PPA terms and lower system overcosts EBITDA VARIATION +58% 243 ELECTRICITY REVENUE BREAKDOWN Spot Sales 10% 153 $ Unregulated Customers 90% 12

13 SIN MARKET EBITDA Decreased by $74 mn. (30%) Lower average spot prices Colombian Peso devaluation Higher Generation EBITDA VARIATION ELECTRICITY REVENUE BREAKDOWN % 172 $427 Contract Sales 50% Spot sales 50%

14 SADI MARKET EBITDA Increased by $6 mn. (30%) Higher generation due to lower maintenance activities Higher prices in spot sales, as per Resolution 22/2016 Lower energy sales under Energia Plus program EBITDA VARIATION SADI REVENUE BREAKDOWN +30% $112 Contract Sales 53% Spot sales 47%

15 NET INCOME Attributable to AES Gener (US$ mn.) One Time Impacts 69 EBITDA Variation Depreciat ion Higher Interest Expense DFC Write Off Income Tax NCI and Other Adjusted

16 CASH FLOW CASH FLOW Dec-15 Operating CF Investment CF Financing CF FX Variation Dec-16 LIQUIDITY 2016 EOP Undrawn Committed Facilities 33% $ Cash and Cash Equivalents 67% 16

17 FINANCIAL DEBT Total Debt Outstanding as of December 31, 2016, US$ 3,824 mn. Average Cost: 5.7% Average Life: 13 years Net Debt/EBITDA: 4.3x (2.1x excluding non recourse debt) 98% denominated in USD 57% $3,824m 43% 91% at fixed interest rate Recourse Debt Non Recourse Debt AMORTIZATION SCHEDULE (US$ M) 1, /2073 Recourse Debt Non Recourse Debt 17

18 AES CHIVOR CONSTRUCTION PROJECTS

19 UPDATE ON CONSTRUCTION Second Expansion Phase, over +$4 bn. Investment SECOND EXPANSION PHASE CONSTRUCTION PROGRESS PROJECT PROGRESS +25% Guacolda Unit V Angamos Desalination COD Achieved COD Achieved Andes Solar COD Achieved 573 Tunjita COD Achieved Cochrane COD Achieved Alto Maipo ~49% (as of Feb. 15, 2017) Guacolda V 152 MW Tunjita 20 MW Alto Maipo 531 MW Angamos Desalination Andes Solar 21 MW Cochrane 532 MW 19

20 TUNJITA KEY TAKEAWAYS

21 KEY TAKEAWAYS HIGHEST EBITDA OF ALL TIME 2016 EBITDA of $778 mn. 13% higher than 2015 COMMISSIONED 573 MW IN 2016 AND ENVIRONMENTAL EQUIPMENT Andes Solar, Tunjita, Cochrane and its Energy Storage achieved commercial operation LEADER IN POWER GENERATION IN CHILE AES Gener contributed with 31% of the total gross energy generated in Chile ARGENTINA ECONOMIC UPTURN AND KEY REFORMS Release of currency controls, normalization of CAMMESA payments and dollarization of tariffs DIVERSIFIED AND CONTRACTED ASSET PORTFOLIO Diversified by geography, technology, customers and fuel sources Long term dollarized PPAs with creditworthy offtakers STRONG CAPITAL STRUCTURE Investment grade rating Strong Liquidity Extended debt maturity profile Competitive financial cost and in fixed rate 21

22 APPENDIX 22

GWh per Year AES GENER CHILE CONTRACTED PORTFOLIO High quality and diversified

1,300 GWh of expiring regulated contracts between 2021 and 2022, representing ~8%

life: 11 years Industrial 8% Discos 62% 25,000 20,000 15,000 10,000 5,000 0 2016

23 GWh per Year AES GENER CHILE CONTRACTED PORTFOLIO 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) Mining 30% Contract avg. life: 11 years Industrial 8% Discos 62% 25,000 20,000 15,000 10,000 5, Regulated Non-Regulated Guacolda Source: AES Gener 23

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AES GENER 2Q 2017 EARNINGS CALL. August 8 th, 2017

AES GENER 2Q 2017 EARNINGS CALL August 8 th, 2017 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