28
CORPORATE PRESENTATION October, 2016 1
CORPORATE PRESENTATION
October, 2016 1
COMPANY OVERVIEW
5,795 MW of installed capacity(1)(3)(4) US$2.8bn market capitalization(2)
797 MWof 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 LTM EBITDA
11years of avg. remaining PPA life 100%
of ownership of the exclusive transmission line between Chile (SING) and Argentina (SADI)
66.7%AES Corp Stake(AFP’s 19.4% stake) BBB-/Baa3 credit ratings (S&P, Fitch, Moody’s)
KEY STATISTICS
Data as of June 30, 2016, unless otherwise noted
(1)
(2)
(3)
(4)
Includes Guacolda
As of October 24, 2016
Includes 21 MW Andes Solar started commercial operations on May 28th
Includes 266 MW Cochrane Unit 1 started commercial operations on July 9th and Unit 2 which started on October 12th3
70%
30%
Regulated
Unregulated
ATRACTIVE MARKETS
SING
4.6 %
4.0 %
12%
88%
Regulated
Unregulated
CHILE
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)
SIC
39%48%
13%
HydroThermal
Other
94%
6%
Thermal
Other
Ratings System Data
Expected Energy Sales
Growth (CAGR 2016-2025)
Energy Sales
(GWh)
Generation by
Fuel Type
S&P AA-
Moody’s Aa3
Fitch A+
Installed capacity
4,008 MW
Generation
18,797 GWh
Installed capacity
15,597 MW
Generation
52,901 GWh
4
3.2 %
3.5 %
67%
33%
Regulated
Unregulated
47%
40%
13%
Large Customers
Residential
Commercial
COLOMBIA AND ARGENTINA
Colombia
Argentina
Source: XM, data as of December 2015 for Colombia
Cammesa and Private Consultants for Argentina. (*) Include mobile plants and commissioning capacity
67%
28% 5%
HydroThermalOther
61%
35% 4%
HydroThermalOther
Ratings System Data
Expected Energy Sales
Growth (CAGR 2016-2025)
Energy Sales
(GWh)
Generation by
Fuel Type
S&P BBB
Moody’s Baa2
Fitch BBB
Installed capacity
16,420 MW
Generation
66,549 GWh
S&P B-
Moody’s B3
Fitch B
Installed capacity
33,494 MW (*)
Generation
135,215 GWh
5
ATRACTIVE MARKETS (Cont.)
#1 generation player in Chile
Efficient player in Colombia
LEADING POSITION
6
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
22%
19%
16%
10%8%
5%
20%
ENEL (2) EPM ISAGEN CELSIA (3) GECELCA Others
30%
26%
17%
12% 14%
(1) ENEL (2) COLBUN ENGIE Others
EBITDA LTM - By electric system Revenues 2015 - By customers
Installed capacity - By fuel type
Note: Figures as of June 30, 2016
SIC: Sistema Interconectado Central
SING: Sistema Interconectado del Norte Grande
(*) LTM figures as of June 30, 2016
Total Chile66%
5,529 MW
US$0.5bn
US$0.1bn
DIVERSIFIED GENERATION PLATFORM
SIC
40%
SING
26%
SIN
30%
SADI
4%
7
US$ 725mn (*)
US$1.5bn(*)
Hydro
21%
Coal
54%
Natural
Gas
24%
Diesel
1%
Biomass
0%
Regulated
34%
Unregulated
57%
Spot
9%
0%
Unregulated
58%
0%
Spot
42%
Contract
42%
0%
Spot
58%
3,393
5,057
152
13 (*)
2007 2015
1,829 MW of new capacity in Chile, since 2007…
BESS Angamos IBESS Norgener2 2
12 MW (Battery) 20 MW (Battery)
Guacolda III Guacolda IV4 4
152 MW (Coal) 152 MW (Coal)
Angamos I & II1
545 MW (Coal)(2 units)
Angamos Desal
Los Vientos3
132 MW (Diesel)
Nuevas Ventanas Ventanas IV6 7Santa Lidia5
139 MW (Diesel) 272 MW (Coal) 272 MW (Coal)
1 2
4
36
7
5
Antofagasta
Santiago
...accounting for ~21% of the Chilean growth
21%
10% 10%7%
AES Gener Colbun EC-L Endesa
GROWTH STRATEGYPhase I: Successful and disciplined growth strategy
Copiapo
Guacolda V4
152 MW (Coal)
+54%
8Note: Data as of December 31, 2015
(*) Additional Capacity of Angamos 13MW
Expansionary Projects Executed (~US$3bn)
$4B Fully Funded
GROWTH STRATEGY (Cont.)
Phase II: Current expansion
9
+25% Project Progress
Solar Andes Completed
Tunjita Completed
Cochrane Unit 1 Completed
Cochrane Unit 2 Completed
Alto Maipo 34.0%
CURRENT PROJECTS STATUS
Guacolda V – 152 MW
Angamos Desalinization
(*) Additional Capacity of Angamos
Tunjita – 20 MW
Solar–Andes – 21 MW
Cochrane – 532 MW
Alto Maipo – 531 MW
5,057 5,509 5,509
15213 (*)
531
2015 2016 2018/2019
MW
Note: Data as of December 31, 2015
(*) Additional Capacity of Angamos 13MW
WIDE ACCESS TO CAPITAL
Successful financing for US$7 bn
10
Sources of Financing for the Expansions(1) Amount (US$ 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 2007 – 2018/19
Adjusted EBITDA & EBITDA margin
STRONG AND STABLE CASH FLOWS
(US$ mn)
Total Debt and Net Debt / EBITDA
Total capex Capital allocation
(US$ mn) (US$ mn)
(US$ mn)
(1)
(1) Capex net of project financing. 11
355 355 377 426 479
245 209 263
246 218
660624
672 691 725
28% 28% 29% 32%33%
0%
5%
10%
15%
20%
25%
30%
0
1,000
2012 2013 2014 2015 1H16 LTM
Chile Colombia Argentina Ebitda Margin
1,126 1,298 1,520 1,669 2,140
1,156 1,487 1,214
1,706
1,7102,282
2,785 2,734
3,375
3,850
2.8x3.3x
3.7x
4.5x 4.6x
-3.0x
5.5x
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2012 2013 2014 2015 1H16 LTM
PF / Non Recourse Debt Corporate Debt Net Debt / Ebitda
148 210 231
33
317
210 230 235
222
49 66
430
92
30
100% 100%94%
100% 100%
20%0
100
200
300
400
500
600
700
800
900
2012 2013 2014 2015 1H16 LTM
Capex Dividends Debt Paydown Div. Payout Ratio
286 336
656 866
434 55
82
127
109
66 419532
830
1002
509
-
1,200
2012 2013 2014 2015 1H16 LTM
Construction Maintenance Environmental
Average Cost 5.3%
Average Life 14 years
Net Debt/EBITDA 4.6x (2.5x excluding non recourse debt)
97.8% denominated in US$ 90.2% at fixed interest rate
STRONG CAPITAL STRUCTURE (US$ mn)
Total Outstanding as of June 30, 2016 US$3,850 mn
12
69141 143
184 162
572
177 193 202
2,006
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025/2073
Recourse Debt44%
Non Recourse
Debt56%
CONTRACTED POSITION
0
5,000
10,000
15,000
20,000
25,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
GW
h /
ye
ar
Non-Regulated Regulated Guacolda
Source: AES Gener
AES GENER CONTRACTED PORTFOLIO
14
High quality and diversified customer base
Efficient portfolio fully aligned with our contracted capacity
Only 1,300 GWh of expiring regulated contracts between 2021 and 2022, representing ~8% of our contracts (excl. Guacolda)
Distribution
33%
Mining59%
Industrial…
Mining61%
Industrial5%
Distribution34%
Contractavg. life: 11 years
REGULATED BID PROCESS SUMMARY
15
The last bid was one of the largest for regulated customers (~14% of the totaldemand of the country by 2021) but several auctions are coming, whichconsiders 23 TWh/year in the next 4 years
20142016-2019
15
20152019
20
20162021-2022
20
20172023
20
20182023
20
20192024
20
13.0 1.2 12.4 2.5 7.0 9.0 4.5
20202026
20
2013 2015 2015 2016 2017 2018 2019
TWh/year
Bid call
Avg. awarded price94.7 US$/MWh(92% awarded
w/o change in law)
Avg. awarded price79.3 US$/MWh
(100% awarded)
Past Bids
Current Bid(015-01) Upcoming Regulated Bids
Avg. awarded price47.6 US$/MWh
(100% awarded)
Year of the BidSupply startingDuration
16
RESULTS BID SUMMARY
Colbún
Endesa
Engie
10,500
50
15% of the offers
51% of the offers
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 12,430 100% 47.5
KEY TAKEAWAYS
KEY TAKEAWAYS
18
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
19
ANNEXES
1H16 HIGHLIGHTS AND RESULTS
AES Gener continues to be the largest energyproducer in Chile contributing 30% of the totalgeneration in the country
Cochrane’s Unit 1 (266 MW), Andes Solar (21 MW)and Tunjita (20 MW), began commercialoperations
Gas agreements with Endesa and ENAP allowedcompany to increase generation of NuevaRenca
Continued exporting energy from Chile toArgentina
22
KEY HIGHLIGHTS
In Colombia, reservoir levels recovered as hydrologytransitioned from El Niño to normal
~US$216mm in Liability Management transactions
On July 28th, S&P reaffirmed the “BBB-” credit Rating ofthe company, outlook “Stable”
Company was awarded as winner of the 2016 “CarlosVial Espantoso” Award
Termoandes distributions from Argentina reachedUS$15.7mn
23
KEY HIGHLIGHTS (Cont.)
Key Metrics (US$ mn) 1H 2016 1H 2015 Var.
Operating Revenues 1,099 1,073 2%
Gross Profit 272 246 11%
Total EBITDA 345 311 11%
EBITDA margin 31% 29%
Net Income 108 83 30%
EBITDA by Market
24
1H16 EARNINGS RESULTS
1H 2016 1H 2015
Note: Numbers rounded for the purpose of the presentation
SIC
50%
SING
31%
SIN
16%
SADI
3%
SIC
50%
SING
22%
SIN
27%
SADI
1%
ANGAMOSSummary of Historical Financials
25
Revenues EBITDA and EBITDA Margin
Credit Metrics Capital Expenditures
(US$ mn) (US$ mn)
(US$ mn)
198 225 214 238 248
133 81 83 44 46
332308 298 284 299
0
400
2012 2013 2014 2015 1H16 LTMContracted Spot Other
127 119112 111
121
38% 39% 38% 39% 40%
0%
45%
0
180
2012 2013 2014 2015 1H16 LTMEbitda Ebitda Margin
26
5
11
16
8
0
30
2012 2013 2014 2015 1H16 LTM
6.5x
5.8x
6.6x 6.8x6.2x
3.0x3.1x
3.0x
2.5x2.7x
1.2x
4.2x
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
2012 2013 2014 2015 1H16 LTMNet Debt / Ebitda Ebitda / Finance Expenses
GUACOLDASummary of Historical Financials
Revenues EBITDA and EBITDA Margin
Capital ExpendituresCredit Metrics
(US$ mn) (US$ mn)
(US$ mn)
26
613
554515
438375
0
700
2012 2013 2014 2015 1H16 LTM
117
165
129122 127
19%
30%
25%28%
34%
0%
32%
0
250
2012 2013 2014 2015 1H16 LTMEbitda Ebitda Margin
98125
342
11580
0
400
2012 2013 2014 2015 1H16 LTM
4.6x
2.9x
4.8x
6.3x 5.9x
3.7x
7.0x 7.3x
3.9x3.3x
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
2012 2013 2014 2015 1H16 LTMNet Debt / Ebitda Ebitda / Finance Expenses
DIVERSIFIED ASSET PORTFOLIO
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
Ventanas Complex
− 4 Units
− 884 MW - Coal
− Located in Valparaíso Region
− Start of operations: 1964/1977/2010/2013
Nueva Renca
− 379 MW – LNG / Diesel
− Located in Santiago
− Start of operations: 1997
Other plants: 418 MW
SIC coal – fired plants: 1,644 MW Back – up plants: 816 MW
Hydro run-of-river plants and renewables: 271 MW
27
TermoAndes
− Combined Cycle (2 Gas Turbines and 1 Steam Turbine)
− 643 MW – Natural Gas
− Located in Salta, Argentina
− Start of operations: 1999
Argentina: 643 MW
Battery storage (BESS) & Solar: 53 MW
AES Chivor + Tunjita
− 10 Units
− 1,020 MW - Hydro
− Located in Boyacá, Colombia
− Start of operations: 1977/1981/2016
Colombia: 1,020 MW
Norgener
− 2 units
− 277 MW – Coal
− Located in Tocopilla
− Start of operations: 1995/1997
SING coal plants: 1,367 MW
DIVERSIFIED ASSET PORTFOLIO (Cont.)
Angamos
− 2 units
− 558 MW – Coal
− Located in Mejillones
− Start of operations: 2011
Battery Storage: 32 MW
− Norgener and Angamos
− Start of operations: 2009/2011
Solar: 21 MW
− Adjacent to Andes Substation
− Start of operations: 2016
28
Cochrane Unit 1 and 2
− 2 units
− 266 MW each – Coal
− Located in Mejillones
− Start of operations: 2016
