CORONAVIRUS (CODVID -19) SCENARIOS OF POTENTIAL IMPACTS
April 20 - 2020
CORONAVIRUS (CODVID -19) SCENARIOS OF POTENTIAL IMPACTS April 20 - - - PowerPoint PPT Presentation
CORONAVIRUS (CODVID -19) SCENARIOS OF POTENTIAL IMPACTS April 20 - 2020 DISCLAIMER This presentation is not an offer for sale of securities. This material has been prepared solely for informational purposes and is not to be construed as a
April 20 - 2020
DISCLAIMER
current the information contained herein. The information contained herein is meant only and example of a potential scenario that is based on assumptions that may or may not occur, and does not purport to be complete and is subject to qualifications and assumptions, and neither the Company nor any agent can give any representations as to the accuracy thereof. The Company and its respective affiliates, agents, directors, partners and employees accept no liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of this material.
about future events and trends that may affect the Company’s business but that are not . Investors are cautioned that any such forward looking statements are not guarantees of future performance. Several factors may adversely affect the estimates and assumptions on which these forward-looking statements are based, many of which are beyond our control. Regarding the impact of COVID-19, the information used for preparing this presentation is solely based on what is publicly available as of March 31, 2020 and the company cannot make any representation with respect to the real impacts as they are unforeseeable. The successful execution and commencement of operation of the investment projects that we are developing or constructing depends on numerous external factors, including (i) delays in obtaining regulatory approvals, including environmental permits; (ii) court rulings against governmental approvals already granted, such as environmental permits; (iii) shortages or increases in the price of equipment reflected through change orders, materials or labor; (iv) the failure of contractors to complete or commission the facilities or auxiliary facilities by the agreed-upon date; (v) opposition by local and/or international political, environmental and ethnic groups; (vi) strikes; (vii) adverse changes in the political and regulatory environment in Chile or other countries from which our operations or projects obtain supplies; (viii) adverse weather conditions (ix) poor geological conditions; and (x) natural disasters, sanitary conditions, accidents or other unforeseen or catastrophic or exceptional events.
directive may result in a violation of applicable laws in Chile or in other jurisdiction.
and accounting advisers to the extent that you deem it necessary, and make your own investment, hedging and trading decision based upon your own judgment and advice from such advisers as you deem necessary and not upon any view expressed in this material.
“CMF.” Shares of our common stock are traded on the Bolsa de Comercio de Santiago—Bolsa de Valores, or the Santiago Stock Exchange, and the Bolsa Electrónica de Chile—Bolsa de Valores, or Electronic Stock Exchange, which we jointly refer to as the “Chilean Stock Exchanges,” under the symbol “AESGENER.” Accordingly, we are currently required to file quarterly and annual reports in Spanish and issue hechos esenciales o relevantes (notices of essential or material events) to the CMF, and provide copies of such reports and notices to the Chilean Stock Exchanges. All such reports are available at www.cmfchile.cl and www.aesgener.com.
2
3
Demand
Limited demand volatility exposure due to contract structure
Operations
Operations deemed critical infrastructure and have contingency plans guaranteeing business continuity
Liquidity
Robust liquidity position with manageable short term obligations
FX
FX Devaluation Exposure offset by conservative hedging strategy
Chile:+$4.1mn* / Colombia: -$3.1mn* / Termoandes -$0.1mn*
*Amounts prepared based on estimated figures by AES Gener based on a sustained 10% devaluation from April to December. Values and percentages are provided for reference purposes only and do not constitute an estimation, assumption or forecast by the Company.
CORONAVIRUS (COVID-19)
EXECUTIVE SUMMARY
MAIN HIGHLIGHTS
CORONAVIRUS (COVID-19)
OUR PEOPLE
SAFETY IS ALWAYS FIRST
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High Risk presonnel (>60-years)
WORKING REMOTELY
Non operational personnel
WORKING REMOTELY
ON SITE AES GENER POEPLE
COVID-19 cases
AES Gener personnel 5
COVID-19 cases
Contractors
CORONAVIRUS (COVID-19)
OUR PEOPLE
KEY MEASURES
5
PREVENTATIVE EDUCATIONAL CAMPAIGNS REMOTE WORK DIGITAL HEALTH AND TRAVEL QUESTIONNAIRE TRANSPORT OF PERSONNEL IN PRIVATE VEHICLES TEMPERATURE CONTROLS RESTRICTED ACCESS TO CONTROL CENTER WORK SHIFT REDISTRIBUTION COORDINATED MEAL TIMES HIGH FREQUENCY CLEANING AND SANITATION PARAMEDICS ON SITE TO EVALUATE SYMPTOMS
CORONAVIRUS (COVID-19)
OUR OPERATIONS
CONTINGENCY PLAN TO ENSURE BUSINESS CONTINUITY
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100%
OPERATING NORMALLY
66%
Of
personnel WORKING ON SITE
+30 days
ASSURED
CORONAVIRUS (COVID-19)
OUR PROJECTS
ADVANCING WITH OUR STRATEGY
7
ANDES SOLAR &
VIRTUAL RESERVOIR
Projects in final stages of testing and commissioning 98% COMPLETE
15%
Of our E&C personnel WORKING ON SITE
LOS OLMOS
& MESAMÁVIDA
Delays due to Supply Chain disruption
CORONAVIRUS (COVID-19)
OUR MARKETS
REVENUE
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40% 60% 20% 80%
REVENUE BY MARKET DEMAND RISK CURRENCY RISK
NO DEMAND RISK POTENTIAL IMPACT OTHER CURRENCIES US$ CHILE COLOMBIA
76% 20% 4%
*Amounts prepared based on 2019 figures. Demand risk Calculated at a Variable Margin level
ARGENTINA
If Free Client demand decreases 5% ($3mn) – 2020YTG In EBITDA
CORONAVIRUS (COVID-19)
CHILEAN ENERGY DEMAND
MINING CONTRACTS ARE MAINLY SUPPORTED BY ToP AGREEMENTS If Disco demand decreases 5% ($5mn) – 2020YTG In EBITDA 65% 15% 20%
Regulated Customers Diversified Unregulated Customers No Demand risk (Tolling or ToP)
Unregulated Market Impact* Regulated Market Impact*
Contracted Volume by customer type for 2020
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*Amounts prepared based on estimated figures by AES Gener for 2020 under existing power supply agreements in force with regulated and free clients and a decrease in demand from April to December. Values and percentages are provided for reference purposes only and do not constitute an estimation, assumption or forecast by the Company.
CORONAVIRUS (COVID-19)
IMPACT IN COLOMBIA
COLOMBIA MOSTLY CONTRACTED WITH DISTRIBUTION COMPANIES
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More than 90% of 2020 contracted energy volume are with DisCos, with Take or Pay PPAs
Discos Aceite y Grasas Actividades de Puertos Home Appliances Hand Tools Cement Products Compensation Fund Printing Real Estate Tires Manufacturing Milling Paper Batteries and Storage Plastic Animal Processing Chemicals Textiles Portfolio of Customers by Industry (2020)
Contract sales represent 80% to 85% of expected generation volume Values and percentages are provided for reference purposes only and do not constitute an estimation, assumption or forecast by the Company.
CORONAVIRUS (COVID-19)
IMPACT IN ARGENTINA
ARGENTINA IS LARGELY A REGULATED MARKET WITH A BASE LOAD DEMAND
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78% of Termoandes energy sales volume are under Energía Base, subject to very low demand risk
Portfolio of Customers (2020) Energia Plus Energia Base
Values and percentages are provided for reference purposes only and do not constitute an estimation, assumption or forecast by the Company.
CORONAVIRUS (COVID-19)
IMPACT IN FX
ON OUR BUSINESS
12
(US$mn) Chile Colombia Termoandes Total 2020YTG EBITDA IMPACT* 2.1 (13.8) (1.4) (13.1) 2020YTG CASH FLOW IMPACT* 4.1 (3.1) (0.1) 0.9
*Amounts prepared based on estimated figures by AES Gener for 2020 and a devaluation from April to December Values and percentages are provided for reference purposes only and do not constitute an estimation, assumption or forecast by the Company.
1 9 46 9 1 10 1 10 47 53 51 55
1 57 46 62 1 61 1 65
CORONAVIRUS (COVID-19)
STRONG LIQUIDITY
SHORT TERM DEBT OBLIGATIONS COVERED
13 Non Recourse Recourse
Liquidity as of December 31, 2019
$591mn
Cash and Cash Equivalents
$341 mn
Undrawn Committed Facilities Dec-2021
$250 mn
Amortization Schedule ($mn)
1Q-2020 2Q-2020 3Q-2020 2Q-2021 4Q-2020 1Q-2021 3Q-2021 4Q-2021
April 20 - 2020