1H2016 RESULTS - BREAKFAST. August 22, 2016

Transcription

1 1H2016 RESULTS - BREAKFAST August 22, 2016

2 Company Overview 2

3 Company Overview Data as of June 30, 2016, unless otherwise noted 5,529MW of installed Capacity (1)(3)(4) US$3.5bn Market capitalization (2) 797MW of fully funded capacity under construction US$ 1.0bn 100% US$ 725MM 11 remaining capex of the U$4bn 2nd expansion phase fully funded of baseload energy in Chile sold under long-term PPAs LTM EBITDA Years of avg. remaining PPA life 100% 66.7% BBB-/Baa3 of ownership of the exclusive transmission line between Chile (SING) and Argentina (SADI) AES Corp Stake (AFP s 19.4% stake) credit ratings (S&P, Fitch, Moody s) (1) (2) (3) (4) Includes Guacolda As of August 17, 2016 Includes 21 MW Andes Solar started commercial operations on May 28 Includes 266 MW Cochrane Unit 1 started commercial operations on July 9 3

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

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

6 Leading Position #1 GENERATION PLAYER IN CHILE MAJOR PLAYER IN COLOMBIA Note: In GWh, data as of June 30,

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

8 Growth Strategy Phase I: Successful and disciplined growth strategy 1,829 MW of new capacity in Chile, since % Angamos I & II Ventanas III & IV Guacolda III, IV & V BESS Projects Note: Data as of December 31, 2015 (*) Additional Capacity of Angamos 13MW 8

9 Growth Strategy (Cont.) Phase II: Current expansion $4B Fully Funded +25% CURRENT PROJECTS STATUS 531 Project Progress (*) Solar Andes Completed 5,057 5,222 5,795 Tunjita Cochrane Unit 1 Completed Completed /2019 Cochrane Unit % Guacolda V 152 MW Angamos Desalinization Tunjita 20 MW Solar Andes 21 MW Alto Maipo 531 MW Alto Maipo 34.0% (*) Additional Capacity of Angamos Cochrane 532 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 International 300 Debt Bonds Local 415 Banks Project Finance 4,505 (1) First and Second Phases: From /19 10

11 1, % 20% 10% 0% 5,000 4,000 3,000 2,000 1, , x -3.0x 110% 0% Strong and Stable Cash Flows Adjusted EBITDA & EBITDA margin Total Debt and Net Debt / EBITDA 28% 28% 29% 32% 33% x 4.6x 3.7x 3, x 2.8x 3,375 2,785 2,734 2,282 1,709 1,706 1,487 1,214 1,156 2,140 1,126 1,298 1,520 1, H16 LTM H16 LTM Chile Colombia Argentina Ebitda Margin PF / Non Recourse Debt Corporate Debt Net Debt / Ebitda 1,200 Total capex Capital allocation 830 1, % 100% 94% 100% 100% H16 LTM Construction Maintenance Environmental H16 LTM Capex Dividends Debt Paydown Div. Payout Ratio 92 (1) Capex net of project financing. 11

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

13 Solid Performance Significant value creation for shareholders The largest total return to shareholders since 2010(1) Gener Market Comparison (Base Jan 2010) AES Gener +66% E-CL +56% Colbún +15% IPSA +14% Endesa Chile +8% 80 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Source: (1) (2) (3) Bloomberg as of August 17, 2016 In Chilean pesos, including dividends LTM dividends paid / market capitalization end of period Last 3 years average 13

14 Solid Performance (Cont.) Significant value creation for shareholders with an attractive dividend yield(2) and the highest payout ratio among peers(3) 5.9% 4.5% 5.2% 6.3% 98% 50% 41% 30% Endesa Colbun EC-L Source: (1) (2) (3) Bloomberg as of August 17, 2016 In Chilean pesos, including dividends LTM dividends paid / market capitalization end of period Last 3 years average 14

15 1H16 Highlights and Results 15

16 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. 16

17 Key Highlights (Cont.) In Colombia, reservoir levels recovered as hydrology transitioned from El Niño to normal ~US$216mm in Liability Management transactions On July 28th, 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. 17

18 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% SADI 1% Note: Numbers rounded for the purpose of the presentation 18

19 1H16 Earnings Results SIC EBITDA US$171 mn Higher demand from unregulated customers Higher efficient generation (hydro and coal) Lower margin in Nueva Renca EBITDA Electricity Revenues Breakdown 155 1H15 +10% 171 1H16 Spot sales 16% Unregulated customer 29% US$ 428 mn Regulated customer 55% 19

20 1H16 Earnings Results SING EBITDA US$106 mn Better PPAs terms Higher spot sales due to higher average prices Energy exports to Argentina EBITDA Electricity Revenues Breakdown % Unregulated customer 92% 106 US$ 295 mn Spot sales 8% 1H15 1H16 20

21 1H16 Earnings Results SIN EBITDA US$56 mn Drop in contract sales Higher spot prices on net spot transactions Lower maintenance EBITDA Electricity Revenues Breakdown -34% Spot 58% US$ 208 mn Contract 42% 1H15 1H16 21

22 1H16 Earnings Results SADI EBITDA US$12 mn Higher Generation Tariff Increase Lower sales under Energía Plus EBITDA Electricity Revenues Breakdown +328% 12 Spot sales 42% US$ 52 mn Unregulated 58% 3 1H15 1H16 22

23 Contracted Position 23

24 GWh / year AES Gener Contracted Portfolio High quality and diversified customer base Efficient portfolio fully aligned with our contracted capacity Only 1,300 GWh of expiring contract between 2021 and 2022, representing ~8% of our contracts (excl. Guacolda) 25,000 20,000 Non-Regulated Regulated Guacolda Mining 61% Distribution 34% 15,000 10,000 Contract avg. life: 11 years 5, Industrial 5% 24 Source: AES Gener

25 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. Past Bids Current Bidi Upcoming Regulated Bids Bid call Bid volume TWh-year 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) 25

26 US$/MWh Results Bid Summary Supplier Energy GWh % Awarded Levelized Price (US$ mn) Amount (US$ mn) 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, % 47.5 OFFER CURVE (GWh-y vs Price) % of the offers 10,500 Endesa Gener 51% of the offers Colbún Engie ,000 20,000 30,000 40,000 50,000 60,000 70,000 GWh/year 26

27 Key Takeaways 27

28 28 28 Key Takeaways HIGHEST TOTAL SHAREHOLDERS RETURN IN THE INDUSTRY Highest growth and highest dividend yield among its peers. 1H2016 reported the best results achieved in the last five. 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. 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.

29 Key Takeaways (Cont.) MOVING FORWARD WITH SECOND EXPANSION PHASE Guacolda Unit 5, Andes Solar, Cochrane Unit 1 and Tunjita CODs achieved. Expansion plan fully funded. STRONG AND ENHANCED CAPITAL STRUCTURE Investment grade rating. Strong liquidity. Extended debt maturity profile. 29

30 Annexes 30

31 x 7.0x 6.0x 5.0x 4.0x 3.0x 2.0x 1.0x 0.0x 4.2x 1.2x % 0% 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 Credit Metrics Capital Expenditures (US$ mn) 6.5x 5.8x 6.6x 6.8x 6.2x x 3.1x 3.0x 2.5x 2.7x H16 LTM Net Debt / Ebitda Ebitda / Finance Expenses H16 LTM 31

32 x 7.0x 6.0x 5.0x 4.0x 3.0x 2.0x 1.0x 0.0x % 0% Guacolda Summary of Historical Financials Revenues (US$ mn) EBITDA and EBITDA Margin (US$ mn) % % % % 34% H16 LTM H16 LTM Ebitda Ebitda Margin Credit Metrics Capital Expenditures (US$ mn) 7.0x 7.3x 6.3x 5.9x x 4.8x 3.7x 2.9x 3.9x 3.3x H16 LTM Net Debt / Ebitda Ebitda / Finance Expenses H16 LTM 32

33 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/ MW (BACK UP PLANTS) NUEVA RENCA 379 MW LNG / Diesel Located in Santiago Start of operations: 1997 OTHER PLANTS: 418 MW GUACOLDA COMPLEX 5 Units 760 MW - Coal Located in Huasco (Northern part of the SIC) Start of operations: 1995/1996/2009/2010/ MW ALFALFAL I (HYDRO RUN-OF-RIVER PLANTS AND RENEWABLES) 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 33 33

34 Diversified asset portfolio (SING COAL PLANTS) 1,101 MW 1,020 MW (COLOMBIA) AES CHIVOR + TUNJITA 10 Units 1,020 MW - Hydro 2 units NORGENER Located in Boyacá, Colombia Start of operations: 1977/1981/ MW Coal Located in Tocopilla Start of operations: 1995/ MW (ARGENTINA) TERMOANDES 2 Units 558 MW Coal Located in Mejillones ANGAMOS Combined Cycle (2 Gas and 1 Steam Turbines) 643 MW Natural Gas Located in Salta, Argentina Start of operations: 1999 Start of operations: Unit 266 MW Coal Located in Mejillones COCHRANE 53 MW (BATTERY STORAGE [BESS] & SOLAR) BATTERY STORAGE: 32 MW Norgener and Angamos Start of operations: 2009/2011 SOLAR: 21 MW 34 Start of operations: 2016 Adjacent to Andes Substation Start of operations:

35 CORPORATE PRESENTATION August 2016