aes gener s.a. gener earthquake deployment rapid recovery of our plants aes chivor record financial...
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AES Gener S.A.AES Gener S.A.May 2011
AES Gener Creating Value – Our Pillars
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Solid Track Record in Attractive Markets
Solid Track Record in Attractive Markets
Attractive Growth Potential
Attractive Growth Potential
Diversified Operating Portfolio
Diversified Operating Portfolio
Successful Business Model
Successful Business Model
Financial StrengthFinancial Strength
¿Why invest in AES Gener?
Diversified Operating Portfolio
Diversified Operating Portfolio
Attractive Growth Potential
Attractive Growth Potential
Financial StrengthFinancial Strength
Successful Business Model
Successful Business Model
Solid Track Record in Attractive Markets
Solid Track Record in Attractive Markets
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Important Presence in Three Major Markets
SIC SING COLOMBIA
2,361 MW in operation• 52% coal
• 11% hydro (run-of-river)
• 16% gas/diesel
1,184 MW in operation• 46% coal
• 54% gas/diesel
1,000 MW in operation• 100% hydro (dam)
• 16% gas/diesel
• 20% diesel
• 1% biomass
270 MW in construction• coal
259 MW in construction• coal
TermoAndes is connected to the SING and the Argentine system (SADI).
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4,545 MW in operation & 529 MW in construction
Solid Presence in Attractive and Stable Markets
• Credit Rating:
> BBB-, Ba1
• Rapidly growing and liquid capital market
• Established (1994) market-oriented and
• Credit Rating:
> A+, Aa2
• Developed and liquid domestic capital market
• Pioneer (1982) market-oriented and
Chile Colombia
• Established (1994) market-oriented and transparent regulatory framework
• Low per capita electricity consumption and steady industry growth
> Average 5-year projected energy demand growth: 4% p.a.
• Pioneer (1982) market-oriented and transparent regulatory framework
• Resilient electric sector with growth potential
> Average 5-year projected energy demand growth
– SIC: 6.4% p.a.
– SING: 6.2% p.a.
3,000
4,000
5,000
6,000
71%14%
15%
AES Gener Shareholders(as of March 31, 2011)
Growing Shareholder Returns
Other
Pension Funds
AES Gener Market Capitalization(US$ Million)
2,3392,698
2,087
3,601
4,425
4,945
0
1,000
2,000
2005 2006 2007* 2008 2009* 2010 Abr-11
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AES
Note: *Primary equity offerings executed in 2007 and 2009
1,147
2,087
Economic Advantages from AES
� Construction and financing expertise
� Construction contractors
� Equipment and fuel suppliers
� Engineering, consulting and
Global Access to:
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8 2 6
62 24
34 2
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5 2
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8 2 6
62 24
34 2
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In OperationIn Construction
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� Engineering, consulting and insurance services
� International commercial bank markets, specifically project finance
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• Operation in 28 countries
• 132 generation plants with > 40,000 MW installed capacity– 1,755 MW wind generation
– 37 MW solar generation
• 14 distribution companies with annual sales of 78,000 GWh
Diversified Operating Portfolio
Diversified Operating Portfolio
Attractive Growth Potential
Attractive Growth Potential
Financial StrengthFinancial Strength
Successful Business Model
Successful Business Model
Solid Track Record in Attractive Markets
Solid Track Record in Attractive Markets
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300
400
500
600
Diversified Portfolio by Market Mitigates Risk
Installed Capacity by Market
SICSING
EBITDA by Market(US$ Million)
27%
31%28%
39%
40% 41%
43%
277331
270
397
528
474
0
100
200
2005 2006 2007 2008 2009 2010
SIC SING Colombia
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Colombia
Diversification reduces earnings and cash flow volatility
44% 47%
16%18%
32%17%
25%
25%
45%
42%40%
31%39%
Diversified Portfolio by Energy Source Guarantees Reliability
Coal 40%
Hydro 28%
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Gas/Diesel 22%
Diesel 9%
Biomass 1%
Note: Percentages based on installed capacity as of April 30, 2011
Diversified Operating Portfolio
Diversified Operating Portfolio
Attractive Growth Potential
Attractive Growth Potential
Financial StrengthFinancial Strength
Successful Business Model
Successful Business Model
Solid Track Record in Attractive Markets
Solid Track Record in Attractive Markets
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Commercial Strategy Maximizes Cash Flow, Minimizing Risk and Reducing Uncertainty
• Long-term contracts with indexed prices for efficient units (hydro, coal)
• Spot market sales with back-up units
• Contracts for 70-80% of projected generation
• Remaining generation for spot sales
Chile Colombia
74%
22%
4%
84%
16%
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2010 Physical Sales: 2010 Physical Sales :
Distcos
Unregulated customers
Spot (Net)Spot (Net)
Customers
Comprehensive Operational Excellence for Sustainable Generation
• Experienced management and extensive operating expertise
• Continuous operating and quality improvement programs
• Safety is first corporate value
• Implementation of world-class safety programSafety
Operational Efficiency
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• Maintenance and operational enhancements to guarantee commercial availability
• Community relations policy to guide interaction between company and surrounding communities
• Proactive engagement programs
• Integrated environmental management
• Continual environmental improvements and investmentsEnvironment
Community
Efficiency
Diversified Operating Portfolio
Diversified Operating Portfolio
Attractive Growth Potential
Attractive Growth Potential
Financial StrengthFinancial Strength
Successful Business Model
Successful Business Model
Solid Track Record in Attractive Markets
Solid Track Record in Attractive Markets
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- Baa3 by Moody’s
- BBB- by S&P
- BBB- by Fitch Ratings
Sound Financial Strategy
- Equity offerings
- Corporate debt
- Project finance
Balanced Capital Structure
Investment Grade Rating
US$816 million as of December 31, 2010- US$593 million cash balance- US$223 million committed credit facilities
- BBB- by Fitch Ratings
Manageable maturities and amortization schedule
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Amortization Schedule
Liquidity and Committed Credit Facilities
Risk mitigation strategy to minimize earnings and cash flow volatility Active Risk Management
809 853 930 1,155
1,789
2,120
-
500
1,000
1,500
2,000
2,500
2005 2006 2007 2008 2009 2010
US
$ M
illion
Total Debt
277 331
270
397
528 474
-
100
200
300
400
500
600
2005 2006 2007 2008 2009 2010
US
$ M
illion
EBITDA
Consistent Growth of Financial Results
EBITDA increased 71% in the last 5 years Debt increase associated with projects
54 70
218
657
865
511
-
200
400
600
800
1,000
2005 2006 2007 2008 2009 2010
US
$ M
illion
CAPEX4.6%
4.0%
1.6%
2.2%
3.7%4.0%
0%
1%
2%
3%
4%
5%
2005 2006 2007 2008 2009 2010
%
Dividend Yield
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EBITDA increased 71% in the last 5 years Debt increase associated with projects
EBITDA = Gross Profit + Administrative Expenses + Depreciation + Minor Adjustments2008, 2009, 2010: Based on IFRS Financial Statements2005-2007: Based on CHGAAP Financial Statements. 12 Month Average FX
AES Gener 2010 Highlights
� AES Gener earthquake deployment rapid recovery of our plants
� AES Chivor record financial results in Colombia
� Initiation of five new long-term distco supply contracts (~3,600 GWh/year)
� Start of commercial operation of new efficient capacity in the SIC:• Nueva Ventanas (272 MW a coal)
• Guacolda IV (152 MW a coal)• Guacolda IV (152 MW a coal)
� Completion of Electrica Santiago restructuring:• Settlements with four gas transport companies significant reduction in fixed costs
• Purchase of CGE minority share (7%)
• Agreement with local supplier for purchase of LNG
� Resumption of Campiche construction in the SIC (270 MW - coal)• Estimated commercial operation: 1Q-2013
626
400
600
800
1,000
1,200
Manageable & Diversified Debt Profile
1,135
Amortization Schedule(US$ Million)Total Debt US$ 2.1 Billion
Project Finance US$1,067 Million Gener Senior Notes
US$400 Million
Chivor Senior NotesUS$170 Million
38 45 59 105
57 68 -
200
400
2011 2012 2013 2014 2015 2016 2017 2018+
Project Finance Subsidiaries Corporate
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Local BondsUS$463 Million
Syndicated Credit US$33 Million
97% denominated in USD / 87% at fixed interest rate
Note: Debt as of December 31, 2011
Diversified Operating Portfolio
Diversified Operating Portfolio
Attractive Growth Potential
Attractive Growth Potential
Financial StrengthFinancial Strength
Successful Business Model
Successful Business Model
Solid Track Record in Attractive Markets
Solid Track Record in Attractive Markets
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Successful Expansion Plan
• Market presence and know-how
• Extensive experience in project management
• Active engagement with communities and interest groups
48% Increase
5,094 MW
1,660 MW
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communities and interest groups
• Integrated approach to mitigate transition from construction to operation
• Total investment: US$ 3 billion
3,434 MW
5,094 MW
Installed Capacity2006
Expansion plan Installed Capacity2013
Efficient Capacity
BESS Norgener – SING: 12 MW battery
• Start date : November 2009
Guacolda III – SIC: 152 MW coal
• Start date: July 2009
Nueva Ventanas – SIC: 272 MW coal
• Start date : February 2010
Los Vientos – SIC: 132 MW diesel
• Start date : January 2007
Santa Lidia – SIC: 139 MW diesel
• Start date : April 2009
Projects for 1,123 MW Completed On-time and On-budg et
Innovative CapacityBack-up Capacity
Guacolda IV – SIC: 152 MW coal
• Start date: March 2010
Angamos I – SING: 264 MW coal
• Start date : April 2011
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SING
Projects for 529 MW in Construction
Efficient capacity:
Angamos II – 259 MW coal
• Start date: October 2011
Innovative Capacity:
BESS Angamos – 20 MW battery
SIC
Efficient Capacity:
Campiche – 270 MW coal
Antofagasta
Santiago
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• Start date: November 2011 • Start date : 1Q-2013Santiago
• 531 MW hydro run-of-river (2 units)- Alfalfal II: 275 MW
- Las Lajas: 256 MW
• Environmental approval obtained in 2009
• Located 50 km east of Santiago
Principal Projects in Development
Alto Maipo - SIC
Santiago
Antofagasta
• Located 50 km east of Santiago
• Same river basin as Gener’s 178 MW Alfalfal I facility
• Minimal new transmission lines (17 km)
• Low environmental impact for large hydro: - No reservoir dams
- Over 90% of works underground
- No impact on indigenous communities or native forests (no re-settlement)
- No impact on Santiago’s water supply
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Santiago
• 560 MW coal
• Environmental approval obtained in 2009
• Similar to Angamos facility
• Located adjacent to Angamos units- Synergies related to port services and coal yard, among others
• Pulverized coal technology, with use of bituminous and sub-
Cochrane - SING
Antofagasta
Santiago
Principal Projects in Development
• Pulverized coal technology, with use of bituminous and sub-bituminous coal
• Includes emissions reduction equipment to control SO2, NOx, and particulate emissions
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Santiago
• 152 MW coal
• Environmental approval obtained in 2010
• 50% ownership
• Similar to existing facilities
• Located adjacent to existing facilities- Synergies related to port services and coal yard, among others
Guacolda V - SIC
Antofagasta
Santiago
Principal Projects in Development
• Pulverized coal technology, with use of bituminous and sub-bituminous coal
• Includes emissions reduction equipment to control SO2, NOx, and particulate emissions
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Santiago
• 20 MW hydro run-of-river (2 units)
• AES Chivor’s Esmeralda Reservoir
• Use of flows from Tunjita river deviation
Tunjita - Colombia
Bogotá
Principal Projects in Development
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Los Robles - SIC• 750 MW
• 2 coal units
• Environmental approval obtained in 2008
• Includes the construction and operation of port
Other Renewables
> 2,000 MW in Development
Other Projects in Development
Other Renewables• Existing water rights
• Battery Storage (BESS)
• Wind
• Solar
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1,992 MW with environmental approval
Attractive Growth Potential
Attractive Growth Potential
Financial StrengthFinancial Strength
� Sound strategy
� Growing financial results
Creating Shareholder Value
Solid Track Record in Attractive Markets
Solid Track Record in Attractive Markets
Diversified Operating Portfolio
Diversified Operating Portfolio
Successful Business Model
Successful Business Model
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� 4,545 MW in installed operating capacity
� Chile & Colombia are stable markets with growing demand
� Geographical and technological diversification
� Diversification reduces risk
� Maximization of cash flow, minimization of uncertainty
� Comprehensive operational excellence
results
reliable energy
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www.aesgener.com
reliable energy