AES E S G en e e n r e S. S A..

Transcription

1 AES Gener S.A. July 2010

2 Gener Overview 2

3 Business Structure AES GENER SIC (2,361 MW) SING (920 MW) COLOMBIA (1,000 MW) 100% 100% 93% 100% 50% 100% 100% 100% Operating Assets ENERGIA VERDE ELECTRICA SANTIAGO NUEVA VENTANAS GUACOLDA NORGENER TERMOANDES CHIVOR 29% run-of-river 41% coal 30% diesel 49% biomass 51% diesel 79% CCGT 21% diesel coal coal coal CCGT hydro -dam (953 MW) (49 MW) (479 MW) (272 MW) (608 MW) (277 MW) (643 MW) (1,000 MW) CAMPICHE coal ANGAMOS I & II coal (270 MW) (518 MW) Existing Capacity: 4,281 MW Capacity under Construction: 788 MW Future Capacity: 5,069 MW Note: TermoAndes is connected to both the SING and the Argentine System (SADI). 3

4 Ownership Structure AES owns 71% of Gener AES has sold approximately 27% in secondary offerings since 2006 AES participated in February 2009 capital increase maintaining 71% ownership Historic Ownership Structure 1.2% 5.8% 3.1% 16.8% 16.2% 14.5% 13.8% 3.1% 13.2% 14.9% 15.5% 98.8% 91.2% 80.1% 70.6% 70.7% 70.7% Jun-10 AES Pension Funds Others 4

5 AES Global Presence AES network provides Gener with economic advantage through access to: In Operation Under Construction > AES operational, construction and financial expertise > Dependable and reliable construction contractors > Equipment and fuel suppliers > Engineering firms, consultant and insurance services > International commercial bank markets, specifically project finance generation plants with 43,000 MW gross installed capacity 1,468 MW wind generation in the United States 14 distribution companies with annual sales of 78,000 GWh 5

6 Gener s Robust Value Proposition Stable Business Environment Diversified Operating Portfolio Successful Business Model Value Proposition Positioned for Growth Financial Strength 6

7 Stable Business Environment 7

8 Chilean Electricity Market Generation Transmission Distribution Customers 40 companies 100% private sector 14,802 MW installed capacity 37% hydro 63% thermo Dispatch based on lowest cost of production (marginal cost) Generators free to sell to: Distribution companies Large consumers Spot market Energy and firm capacity payments 10 companies 100% private sector Transmission (> 23 kv) > 17,000 km Open access transmission Tolls for existing facilities set by regulator every 4 years based on independent market study Bid processes for new facilities 31 companies 100% private sector 4.7 million consumers 54% of Chile s demand Exclusive geographic concessions for regulated clients Gradual phase out of regulated tariffs paid to generators (node prices) New tariffs paid to generators set through public bid processes Value-added distribution tariffs set by regulator every 4 years based on model company > 100 large consumers directly supplied by generators Demand > 2 MW Demand 0.5 > 2 MW may select to be supplied by generator or distributor for 4 year periods Freely negotiated prices and conditions

9 Colombian Electricity Market Generation Transmission Distribution Clients 43 companies 49% private sector 13,496 MW installed capacity 67% hydro 33% thermo Dispatch based on lowest price offered Generators free to sell to: Distribution companies Trading companies Spot market Energy, firm capacity and frequency regulation payments 29 companies 19% private sector Regional regulated monopolies Transmission (> 115 kv) > 24,000 km Open access transmission Tolls for existing facilities determined by regulator based on industry benchmark Bid processes for new facilities 32 companies 46% private sector 10.2 million consumers 69% of Colombia s demand Regional regulated monopolies Exclusive geographic concessions for regulated clients Tariffs paid to generators set in public bids Value-added distribution tariffs set by regulator based on industry benchmark > 4,000 large consumers supplied by distribution or trading companies Demand > 55 MW per month Freely negotiated prices and conditions

10 Stable Long Term Business Environment Credit Rating: > A+, Aa2 Chile Developed and liquid domestic capital market Proven resilience during economic crisis and post earthquake Established (1982) market-oriented and transparent regulatory framework > Recent pro-investment improvements (Short Law 2005) Resilient electric sector with growth potential > Average 5-year projected energy demand growth: SIC: 6.3% p.a. SING: 5.1% p.a. Credit Rating: > BB+, Ba1 Colombia Rapidly growing and liquid capital market Proven resilience during economic crisis Established (1994) marketoriented and transparent regulatory framework > Recent pro-investment improvements (Reliability Charge 2006) Low per capita electricity consumption and steady industry growth > Average 5-year projected energy demand growth: 4% p.a.

11 Established Market Presence Chile Colombia Otros Gener Otros Endesa E-CL Colinversiones EPM Colbún Endesa AES Chivor Gecelca 2 nd largest electricity generator in Chile: SIC: 2,361 MW of installed capacity, representing 19% of the system SING: 920 MW of installed capacity, representing 25% of the system Isagen Important presence in Colombia: 1,000 MW of installed capacity, representing 7% of the system TermoAndes dual interconnection allows for sales in both Chile and Argentina 11

12 Diversified Operating Portfolio 12

13 Asset Portfolio Business Activities Installed Capacity: - 4,281 MW Chile: - 3,281 MW in operation in construction Colombia: - 1,000 MW Transmission: - 1,511 km in operation km. in construction Fuel sales Operating assets near major consumption centers 13

14 Diversified Portfolio Mitigates Risk Installed Capacity by Market Installed Capacity by Energy Source 2009 EBITDA by Market SING SIC Hydro Coal SING SIC SIN Biomass Gas/Diesel Diesel SIN Generation assets diversified by market and energy sources Diversification reduces earnings and cash flow volatility 14

15 Operations in Three Major Markets SIC Generation portfolio is complementary to the system Base-load thermal plants in the central zone Run-of-river hydro plants in the Santiago metropolitan area Back-up thermal plants Generation 2009: 8,376 GWh, 21% of SIC total generation SING Thermoelectric generation portfolio diversified between coal and gas/diesel TermoAndes is connected to both the SING and SADI Generation 2009: SING: 3,170 GWh, 22% of total generation SADI: 2,270 GWh, 2% of total generation Colombia 1,000 MW dam-based hydroelectric plant Chivor s hydrology is countercyclical with the rest of the country Generation 2009: 3,300 GWh, 6% of SIN total generation Gas/Diesel Biomass Coal Installed Capacity 30% Coal Diesel Gas/Diesel Hydro Hydro 15

16 Successful Business Model 16

17 Chile: Commercial Strategy Focuses on Cash Flow Stability Commercial strategy maximizes cash flow and minimizes uncertainty Reserve of higher cost units for spot market sales Execution of long-term contracts for efficient generation units (hydro, coal) New contracts executed to replace contracts expiring in 2010 New contracted capacity capitalizes on market opportunities Long term supply contracts include indexation formulas based on principal variable costs (coal and CPI) Fuel strategy aligns fuel procurement with energy supply contracts Regulated Customers 2009 Physical Sales Unregulated customers Spot Dist. w/o contracts Efficient Units Long-term contracts Back-up Units Spot sales and firm energy revenue 17

18 Colombia: Commercial Strategy Focuses on Maximizing Cash Flow Commercial strategy maximizes cash flow and minimizes value at risk Based on hydrological conditions and fuel prices Optimal contract level ~50-60% of plant s expected dispatch Residual generation for spot sales Reliability charge sales for firm generation (~3,000 GWh/year) Frequency regulation sales based on market conditions Efficient reservoir management Contract term: 1-3 years Spot 2009 Physical Sales Contracts ~50-60% of projected generation Medium-term contracts Remaining generation Spot and frequency regulation sales Firm energy Reliability charge revenue 18

19 Comprehensive Operational Excellence Safety Safety is first corporate value Implementation of world-class safety program Operational Excellence Community Operational Efficiency Community relations policy to guide interaction between company and surrounding communities Proactive engagement Experienced management and extensive operating expertise Continuous operating and quality improvement programs Maintenance and operational enhancements to guarantee commercial availability Environment Integrated environmental management Continuing environmental improvements and investments 19

20 Positioned for Growth 20

21 Development Strategy Capitalizing on Market Opportunities Building on market presence and know-how Development and introduction of innovative technologies Environmental permits Extensive experience in project management Expansion projects on-time and on-budget Structured financing Market Opportunities Lump-sum, turnkey EPC contracts Gener is currently the largest investor in generation projects in Chile Active participation with communities and stakeholders Integrated approach to mitigate transition from construction to operation Long term price-indexed supply contracts 21

22 Attractive and Ambitious Expansion Plan 291 Incorporation of Projects (MW) ,799 3,566 Capacity Capacity Installed Capacity by Market 2011 Installed Capacity by Market Colombia 23% SIC Colombia 21% SIC 55% 49% 22% 30% SING SING 22

23 Projects in Operation Los Vientos 132 MW - diesel SIC Santa Lidia 139 MW diesel Guacolda III 152 MW - coal 859 MW in operation Start Date: January 2007 Start Date : April 2009 Start Date : July 2009 SING SIC BESS 12 MW battery Nueva Ventanas 272 MW - coal Guacolda IV 152 MW coal Start Date : November 2009 Start Date : February 2010 Start Date : March

24 Projects in Construction SING Angamos I & II 518 MW - coal SIC Campiche 270 MW - coal Unit I (259 MW) Start Date: April 2011 Unit II (259 MW) Start Date : October 2011 Temporarily Suspended 788 MW in construction 24

25 Projects in Development Alto Maipo 530 MW run of river SIC Los Robles 750 MW - coal Guacolda V 152 MW - coal 1,840 MW with environmental permits 2 units Environmental approval obtained in units Environmental approval obtained in unit Environmental approval in process SING Colombia Cochrane 560 MW - coal Tunjita 20 MW - hydro Renewables 2 units Environmental approval obtained in units Existing water rights (hydros & mini-hydros) Battery Storage (BESS) Wind Solar 25

26 Financial Strength 26

27 Sound Financial Strategy Optimize Capital Structure Primary equity offerings: - US$518 million (June 2008 and February 2009) Corporate debt: - Issuance of US$400 million in Chilean bonds (December 2007 and April 2009) Project Finance: - US$1,429 million (Nueva Ventanas and Angamos) Maintain Investment Grade Rating Financial Policy BBB- (S&P, Fitch), Baa3 (Moody s) Exitoso modelo de negocio Maintain Liquidity Approx. US$200 million in committed credit facilities Manageable Amortization Schedule No significant debt maturities until 2014 Risk Management Focus on earnings and cash flow stability 27

28 Manageable Debt Structure 1, Debt Amortization Schedule (US$ Million) Corporate Subsidiaries Project Finance Balance Debt as of March 2010 MUS$ Corporate 816 Subsidiaries 260 Project Finance 843 Total Consolidated 1,919 97% of debt denominated in USD 91% of debt at fixed interest rate 28

29 Solid Financial Indicators EBITDA Total debt ,000 1,789 1,884 US$ Million US$ Million 1,500 1, , Q Q10 Times x Net debt/ EBITDA 3.0x 2.8x 2.1x 3.1x 3.2x Times x Interest coverage 5.0x 4.5x 4.0x 5.9x 5.0x LTM 1Q LTM 1Q10 EBITDA = Gross Profit + Administrative Expenses + Depreciation + Minor Adjustments : Based on IFRS Financial Statements : Based on CHGAAP Financial Statements. 12 Month Average FX 29

30 Robust Value Proposition Stable Business Environment Pro-investment and transparent regulatory framework in Chile and Colombia Diversified Operating Portfolio Geographically and technologically diversified business in three major markets Successful Business Model Commercial strategy maximizes cash flow and minimizes uncertainty Comprehensive operational excellence for long term sustainability Positioned for Growth Projects capitalize on market opportunities, providing cash flow growth Solid project structuring, management and operational integration Financial Strength Successful financial strategy and broad access to capital markets Sustainable investment grade credit metrics 30

31 AES Gener S.A. July 2010