21
Q4 2015 Earnings Call February 24, 2015
Q4 2015 Earnings Call
February 24, 2015
Highlights
Financial Review
Development Projects
Key Takeaways
Q&A
1
AGENDA
Highlights
AES Gener continues to be the largest energy producer in Chile since 2014. In2015 it provided 27.2% of the total generation in the country
Gross profit increased by 9% to $583m and net income by 44% to $265mbetween 2015 and 2014, despite of significant drop of commodity prices andstrong devaluation of local currencies against US dollar, given the strongcommercial and hedging policies in place
The company has made good progress on its projects
Unit 5 of Guacolda reached COD on December 15, 2015
Angamos Desal completed
Solar Project initiated commissioning tests in February 2016
Cochrane on track and below budget. COD expected in 2016
AES Gener is the only generation company selected in the DJSI Chile integrated by12 companies
Key Highlights
3
Gas supply agreement signed with ENAP securing the operation of Nueva Rencafor 4 months in 2016
Company was awarded with 1.5 million m3/day of regasification capacity of GNLChile
SING-SADI Interconnection fully operational
First commercial energy export to Argentina started on February 12, 2016
Argentina CEPO was partially released, Termoandes distributed US dollars to AESGener in January 2016
Rating agencies confirmed Company’s Investment Grade rating with stable outlook
Successful liability management executed in 2015 totaling ~$1.3 billion
FX forwards compensations received during 2015 for $30m plus $7m in Guacolda
482 Tariff Resolution will apply to TermoAndes for the energy in excess of what issold under Energía Plus program
Key Highlights
4
-
5.000
10.000
15.000
20.000
25.000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
GW
h-y
ear
AES Gener Contract level
Long term contracted position with an average life of 12 years with a high qualityand diversified customer base
No significant maturities until 2024
Efficient portfolio fully aligned with our contracted capacity
Key Highlights
5
Distribution33%
Mining59%
Industrial8%
AES Gener Contracts by Sector
Contractavg. life: 12 years
Financial Review
Key Metrics Q4 2015Var. vs
Q4 2014FY 2015
Var. vsFY 2014
Operating Revenues 500 -6% 2,165 -7%
Gross Profit 191 61% 583 9%
EBITDA 201 27% 691 3%
Net Income 73 74% 265 44%
Consolidated Financial SummaryUS$ Million
7
SIC
39% 36%
SIN
22%
SING
3%
SADI
US$ Million
EBITDA Variance by Market
8
671
691
2030
1713
2014 SIC SING SIN SADI 2015
Regulated Customers
58% 35%
Unregulated Customers
Spot Sales
7%
Revenues from Nueva Renca lease agreement
Lower spot prices during maintenance
Lower volume sales to regulated customers
Lower sale prices with distribution companiespartially offset by $12 million in FX forwardscompensations
Key Drivers SIC EBITDA
+7%
US$ Million
SIC – EBITDA $273 million
9
Electricity Revenues of $796 million
253273
2014 2015
SING EBITDA
+25%
US$ Million
SING – EBITDA $153 million
56%96%
Unregulated Customers
Spot Sales
4%
Key Drivers
Higher demand from unregulated customers
Lower marginal cost reducing spot margin
Technical minimum still impacting EBITDA
10
Electricity Revenues of $557 million
123
153
2014 2015
Regulated Customers
43% 57%
Spot Sales and Ancillary
Services
Key Drivers SIN EBITDA
-6%
US$ Million
SIN – EBITDA $246 million
Devaluation of the Colombia Peso, partiallymitigated by $13m in FX forwardscompensations
Extreme dry conditions during Q4 2015
Higher generation to support the country
11
Electricity Revenues of $550 million
263246
2014 2015
Lower sales under Energía Plus contracts
Major Maintenance of the Steam Turbine andone Gas Turbine
Devaluation of the Argentina Peso
Recognition of 482 Tariff Resolution fromFebruary 2015
Key Drivers SADI EBITDA
-39%
56%
Spot Sales
22%78%
Unregulated Customers
US$ Million
SADI – EBITDA $19 million
12
Electricity Revenues of $91 million
32
19
2014 2015
US$ Million
Net Income (Attributable to Shareholders of Parent)
13
184
265
20
49
41
17
2
2 353
2014 EBITDA FX Impact EquityEarnings
Depreciation Net financingcosts
Income tax Other MinorityInterest
2015
2016 2017 2018 2019 2020 2021 2022 2023 2024 25-73
69
139
176154
559
162172 173
1,768
136
2025+
97.9% denominated in US$ 88.5% at fixed interest rate
US$ Million
Debt Profile
14
Recourse Debt
49%51%
Non Recourse
Debt
Total Outstanding as of December 31, 2015 US$3,507 Million
Average Cost 5.3%
Average Life 14.5 years
Net Debt/EBITDA 4.5x (2.4x excluding non recourse debt)
229267
108
796
852 14
December2014
OperatingActivities
FinancingActivities
InvestingActivities
FX Impact December2015
LIQUIDITY: US$ 512 MILLION
Cash and Cash
Equivalents+ Short Term
Time Deposits
Undrawn Committed Facilities58% 42%
US$ Million
Cash Flow and Other Sources of Liquidity
15
Development Projects
5.0725.224
5.797
152
573
531
Angamos Desal
2015 2016 2018/2019
Projects under construction Projects Status as of December 31, 2015
Guacolda V – 152 MW
Angamos Desalinization
Tunjita – 20 MW
Solar–Andes – 21 MW
Cochrane – 532 MW
Alto Maipo – 531 MW
Second Phase of Expansion – $4B Fully Funded
17
MW
Project Progress
Guacolda 5 Completed
Angamos Desal Completed
Solar Andes Commissioning Tests
Cochrane 96%
Tunjita 98%
Alto Maipo 24%
Key Takeaways
COMPANY 2015 EBITDA HIGHER THAN IN 2014 $20 million higher than last year
Better results in Chile partially offset by lower energy margin in Colombia and Argentina
LEADER IN GENERATION IN CHILE Company contributed with 27% of country generation
Operational excellence proven by high availability
DIVERSIFIED AND LONG TERM CONTRACTED ASSET PORTFOLIO Geographical, technological, customers base and fuel sources
Dollarized Long Term PPAs aligned with efficient generation
MOVING FORWARD WITH SECOND EXPANSION PHASE Guacolda V and desalinization plant successfully completed in 2015
Generator with more projects under construction in Chile
Expansion plan fully funded
World class partners: GIP, Mitsubishi, Antofagasta Minerals
STRONG AND ENHANCED CAPITAL STRUCTURE Investment grade rating
Strong liquidity
Extended debt maturity profile
Key Takeaways
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