5a Cumbre Corpbanca
December 10-11, 2014
1
Company Overview
Markets Update
Financial Review
Development
Key Takeaways
2
COMPANY
OVERVIEW 3
Operations in 4 markets: SIC and SING in Chile, SIN in Colombia and SADI in
Argentina
Diversified asset portfolio: Generation Sources, Customers and Markets
Long-term Contractual Position
Installed Operating Capacity: 5,083 MW (Successful completion of projects for
1,696 MW from 2007 to 2013)
Capacity under Construction: 1,256 MW
International and Local Investment Grade Rating :
AES Gener: BBB- (Fitch; S&Ps), Baa3 (Moodys) A+ (local, Fitch; Feller)
AES Chivor: BBB- (S&Ps), Baa3 (Moodys)
Angamos: BBB- (S&Ps) and Baa3 (Moodys)
About AES Gener
70.7%
AFPs
16.4%
Other
12.9%
MARKET CAP1:
US$4,6 MILLION
OWNERSHIP AS OF NOV. 2014
1: As of December 04, 2014, Source: Bloomberg
4
1
2 3
4
5
5 6 7
9 10
11 12 13
Chivor
1
Norgener
2
TermoAndes 4
Elctrica Angamos
3
Guacolda
5
Elctrica Campiche
6
Elctrica Ventanas
7
Gener
5 12 13
Elctrica Santiago
9 10 11 8
14
14
8
Elctrica Cochrane
under construction
Alto Maipo under construction
16
15
16
15
Diversified Asset Portfolio
Electricity Revenues LTM September 2014
US$2,196 million
Installed Capacity by Technology 2014*
Installed Capacity by Market 2014
Regulated
Customers 35% 37%
Unregulated
Customers Spot Sales
28%
51% 16%
46% 25% 20% 9%
5,083 MW in operation & 1,256 MW in construction
Guacolda Sales are not included
Installed capacity as of October 31, 2014, TermoAndes is connected to the SING and the Argentine system (SADI).
SIC:2,618 MW
20%
SIN: 1,000 MW SING: 822 MW
13%
SADI: 643 MW
COAL HYDRO NATURAL
GAS /
DIESEL
DIESEL
0.3%
BIOMASS
*Installed capacity as of October 31, 2014, including Guacolda
5
6
MARKET
UPDATE
0
60
120
180
240
300
Ja
n-1
3
Ma
r-13
Ma
y-1
3
Ju
l-1
3
Sep
-13
Nov-1
3
Ja
n-1
4
Ma
r-14
Ma
y-1
4
Ju
l-1
4
Sep
-14
Nov-1
4
US
$/M
Wh
SIC SING
Market Update: Chile 7
Energy Reservoirs - SIC Hydro conditions in 2H14 close to a normal year
Marginal Cost
Key Drivers
0
800
1,600
2,400
3,200
4,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
GW
h e
qu
iva
len
t
2013 2014
SIC
Reservoirs level in 2H14 higher than in 2H13 due to an increase in rainfall and better snow melting conditions.
Average marginal cost ~ 80 US$/MWh (Oct Nov 2014)
SING
Average marginal cost (Oct Nov 2014) lower than the same period last:
Lower fuel costs and
Higher LNG dispatch at minimum technical load
Average marginal cost ~ 60 US$/MWh (Oct Nov 2014)
-
50
100
150
200
250
Ja
n-1
3
Ma
r-13
Ma
y-1
3
Ju
l-1
3
Sep
-13
Nov-1
3
Ja
n-1
4
Ma
r-14
Ma
y-1
4
Ju
l-1
4
Sep
-14
US
$ / M
Wh
Market Update: Colombia
Energy Reservoirs Improve in hydro conditions during 2H14
Spot Price
Key Drivers
Reservoir levels were above historical average in June and July 2014 due to an increase in rainfall
Average spot price decreased significantly between 2Q14 and 3Q14
Sogamoso initiated commercial operations in November 2014 (~900 GWh energy generation)
Average marginal cost in Oct 2014 ~ 100 US$/MWh
5000
8000
11000
14000
17000
20000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
GW
h
2013 2014
Market Update: Argentina 9
Mercado
Lower spot prices in US dollar :
Spot price in Argentine pesos remained at 120 Ar$/MWh
Depreciation of the Argentine peso
Lower contract sales under Energa Plus program due to lower customers demand
Successful technical testing SING SADI Interconnection
Key Drivers CAMESSA Price (TermoAndes)
0
6
12
18
24
30
ene-
13
mar
-13
may
-13
jul-1
3
sep-
13
nov-
13
ene-
14
mar
-14
may
-14
jul-1
4
sep-
14
US
$/M
Wh
Devaluation 9M14 ~ 29%
FINANCIAL
REVIEW 10
32% 18%
33% 27% 32% 30% 32%
38%
39%
32%
27% 24%
25% 22%
3%
1%
4%
9% 10%
11% 5%
27%
43%
30%
37% 34%
35% 42%
2009 2010 2011 2012 2013 9m 2013 9m 2014
SIN SADI SING SIC
474
738
660 623
528 472
514
11 EBITDA by Market
472
514
52 22
5 27
0
120
240
360
480
600
EBITDA9M13
SIN SIC SING SADI EBITDA9M14
US
$ M
ilio
n
EBITDA* BY MARKET US$ million
* EBITDA = Gross profit + administrative expenses + depreciation
1,049 1,110 1,114 1,156 1,487
1,272
740 1,010 1,154
1,126
1,298 1,478
2009 2010 2011 2012 2013 ** sep-14
Project Finance Debt Corporate Debt
Financial Indicators
2,5x
3,2x
2,3x
2,8x
3,3x 3,0x
3,4x
2009 2010 2011 2012 2013 sep-13 sep-14
865
511
395 419
532
294
507
2009 2010 2011 2012 2013 9M 2013 9M 2014
1,789
2,120 2,268 2,282
2,785 2,750
DEBT * (US$ MILLION)
NET DEBT / EBITDA (TIMES)
Note: (*) Other Current Financial Liabilities
(**) Includes Junior Subordinated Bonds issued in December 2013 for MMUS$450
CAPEX (US$ MILLION)
12
2014 2015 2016 2017 2018 2019 2020 2021 2022 a 2073
Project Finance Chilean Bonds Senior Notes Chivor Senior Notes Gener Leasing Tunjita Junior Subordinated Notes
1,376
200
64 97 131
243
541
150
66
Debt Profile 3Q 2014
Senior Notes Chivor
under refinancing
process of US$170
million
Amortization Schedule (US$ Million)
49.8% 14,2% 7,2% 15,9% 1.5%
Leasing
Tunjita
Project
Finance
Junior
Subordinated
Notes
Senior
Notes
Chivor
Senior
Notes
Gener
Chilean
Bonds
52.0% 6,0% 15.7%
12,9% 14.0% 10.9% 5.9%
TOTAL DEBT US$ 2,868 MILLION
16
Angamos Project Finance was
refinanced with US$800 million
Senior Secured Bonds
DEVELOPMENT
14
2nd Expansion Phase: Financing Completed
Project Level Debt (Project Finance)
Cochrane Project: US$ 1,000 million
Alto Maipo Project: US$ 1,217 million
Guacolda V Project: US$ 318 million
Tunjita Project: US$ 63 million (leasing)
Equity Contribution
Partner Equity: Mitsubishi Corporation, Antofagasta
Minerals
Junior Subordinated Notes: US$ 300 million
Capital Increase of US$150 million
Total Investment
~ US$ 4 Billion
Majority shareholder at Guacolda
Ownership 50% plus 1 share.
Partner equity from GIP
Balanced Financial Structure
Projects under construction: Chile and Colombia
19
PLATFORM EXPANSION
2015 First Half Second Half
TUNJITA 20 MW HYDRO (RUN-OF-RIVER)
CHIVOR
Progress: 89%
GUACOLDA V 152 MW COAL FIRED
CHILE - SIC
Progress: 81%
SOLAR ANDES 20 MW
CHILE SING
Progress: Engineering Stage (6%)
ANGAMOS DESALINIZATION PLANT
CHILE SING
Agreement signed with Abengoa
NTP: October 2014
20 Projects under construction: Chile
2016 2017 (Unit I) 2018 (Unit II)
COCHRANE 532 MW COAL - FIRED
SING
Progress: 56%
ALTO MAIPO 531 MW HYDRO (RUN-OF-RIVER)
SIC
Progress: 7%
PLATFORM EXPANSION
18
Other Projects: Chile
21
PLATFORM EXPANSION
EMISSION CONTROL EQUIPMENT (RETROFITS)
As of September 30, 2014:
~ US$101 million at Norgener
~ US$94 million at Ventanas
Installation in Units I, II and IV at Guacolda Complex
~ US$101 million
OTHER DEVELOPMENT PROJECTS
Andes Solar Project up to 200 MW
Existing Water Rights (hydro), hydro run of river projects
Battery Energy Storage (BESS)
SING SADI INTERCONNECTION
Technical testing carried out in February and May 2014
KEY
TAKEAWAYS 19
SOLID PROGRESS OF PROJECTS UNDER CONSTRUCTION SECOND PHASE OF EXPANSION PLAN FULLY FUNDED
FOCUSING GROWTH ON EXPANDING CURRENT ASSETS
FINANCIAL RESULTS DURING 3RD QUARTER 2014
HIGHER ENERGY GENERATION IN OUR MAJOR MARKETS CONSOLIDATED AVAILABILITY: 92.8%
SIC: HIGHER COAL EFFICIENT GENERATION RELATED TO THE START-UP OF
VENTANAS IV IN MARCH 2013 AND HIGHER SPOT SALES DUE TO HIGHER
GENERATION AT NUEVA RENCA
SING: HIGHER DEMAND UNDER NORGENER CONTRACTS AND HIGHER SPOT
SALES AT ANGAMOS
SIN: BETTER HYDROLOGICAL CONDITIONS IN COLOMBIA IN 3Q LED TO AN
INCREASE IN GENERATION
HIGHER SALES TO THE SPOT MARKET AT HIGHER PRICES
SADI: LOWER CONTRACT AND SPOT SALES IN ARGENTINA
KEY TAKEAWAYS CONTINUING SOLID FUNDAMENTALS
23