AES Gener 1Q 2020 Earnings Report PDF

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Earnings Report - 1Q 2020
AES GENER FIRST QUARTER OF 2020 RESULTS
AES Gener S.A. (hereinafter referred to as AES Gener, Gener, or the Company) recorded EBITDA of US$162 million
in the first quarter of 2020, 22% below the US$208 million achieved in the same period in 2019 primarily due to lower
gross margin in Colombia and, to a lesser extent, Argentina. Gross margin in Chile remained stable between both
periods.
• EBITDA in the Chilean market reached US$148 million, stable from the first quarter of 2019. The main positive
drivers were less programmed maintenance costs and the additional margin from Los Cururos, the 110MW
wind farm acquired in November 2019. These variations were partly offset by lower unregulated contract
margins, which were partially compensated by higher regulated contract margins.
• EBITDA in Colombia reached US$1 million in the first quarter of 2020, representing a 98% decrease over the
same period in 2019. The main driver for this reduction is the 67% decrease in generation due to the planned
dewatering of the reservoir in the second half of 2019 to perform the works on the water intakes and increase
the plant's useful life.
• EBITDA in Argentina reached US$14 million during the first quarter of 2020, representing a 13% decrease.
Lower capacity revenues due to lower availability resulting from scheduled maintenance in 2020 and lower
capacity rates associated with Res 31/2020 which took effect February 1, 2020 were partially offset by higher
contract sales margin.
Net Income Attributable to Parent (“Net Income”) reached US$76 million in the first quarter of 2020, which positively
compares to the US$63 million in the first quarter of 2019. The main drivers for this increase relates to lower financial
expense of US$25 million in the first quarter, associated mainly with higher interest capitalization at Alto Maipo, a
positive effect in FX differences related to gains on FX derivatives used to hedge the exposure to the Colombian Peso,
a US$3 million increase in Equity Earnings mainly associated with better Operating Results at Guacolda, a US$10
million decrease in Income Taxes mainly due to lower taxable Income in Colombia and Argentina, and a US$7 million
reduction in Other Non-Operating Losses primarily associated with the impact of accelerated amortization of Financing
Costs linked to the refinancing of Gener’s 2073 Hybrid Bond in March 2019. These positive drivers were partially offset
by the decrease in EBITDA.
CONSOLIDATED FINANCIAL SUMMARY

Numbers presented in the report are rounded to millions; therefore, differences may arise with the financial statements.
Financial Summary (ThUS$) 1Q

2020 2019 Var (%)
Revenue 542,343 634,218 (14)%
Gross Profit 125,710 165,440 (24)%
EBITDA* 162,136 207,742 (22)%
Net Income (attributable to AES Gener) 76,030 63,281 20 %
Net Cash from Operations 67,654 138,516 (51)%
Earnings per Share 0.015 0.014 7%
(*) EBITDA is calculated as the sum of gross profit plus administrative expenses, depreciation, and other minor
adjustments.
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HIGHLIGHTS AND RECENT EVENTS

Greentegra Strategy Execution
AES Gener continues to expand its portfolio, incorporating new customers, increasing the supply of new energy
contracts through its Greentegra strategy.
The Company has executed renewable Power Purchase Agreements (PPAs) totaling 8.1TWh per year in Chile and
Colombia. In order to supply a large portion of these contracts the Company is adding approximately 1.6GW of new
wind and solar capacity (0.5GW of solar and 1.1GW of wind) to its portfolio by 2024. In addition, the Company is
advancing with the construction of the 531MW Alto Maipo run-of-river hydro plant in Chile. During 2019 the Company
added 131MW of renewable capacity in its portfolio, 21MW of solar capacity in Colombia and 110MW of wind capacity
in Chile. During 2020, the Company has completed 36MW of the 80MW expansion of Andes Solar, and has 763MW
under construction.
At the Extraordinary Shareholders Meeting held on April 16th, 2020, the shareholders approved a capital increase of
US$500 million. The capital raised from the share issuance is set to fund the construction of wind and solar projects to
supply the new renewable energy PPAs.
Chile
• In February 2020, Compañía Minera Teck Quebrada Blanca S.A. (CMTQB) and AES Gener S.A (AES Gener),
entered into a 20-year long-term power purchase agreement for the Quebrada Blanca Phase 2 copper project
(QB2) in Chile, enabling the transition to renewable energy. Under this arrangement, CMTQB will source
1TWh/year for QB2 from AES Gener’s growing renewable portfolio of wind, solar and hydroelectric energy
starting in 2022. Once effective, more than 50% of QB2’s total operating power needs are expected to be from
renewable sources. Once it begins supply new renewable PPA will replace energy supply of the contracts
Angamos and AES Gener had with CMTQB and were set to expire in 2037, while preserving the value of the
legacy contracts and de-linking it from the coal assets.
• In January 2020, AES Gener subscribed a 20-year long-term power purchase agreement with Minera Los
Pelambres. This contract will extend the commercial relationship with the subsidiary of AMSA until 2040 and
contemplates the delivery of 350GWh/year of renewable energy starting in 2021.
• In July 2019, Guacolda signed a supply contract with Mantos Cooper for up to 0.9TWh/year of renewable
energy for Mantos Cooper’s current operations and for future projects and expansions. The Contract initiated
Supply in 2020 and will last up until 2036.
• The Company signed a 440GWh/year long-term supply contract with Google in the third quarter of 2019. The
PPA started supplying Google’s Latin America data center in 2019 and up until 2035. New wind and solar
assets will provide renewable energy to Google’s operations in Santiago.
• In total the Company has signed 5.8 TWh/y in Chile with mining, commercial and industrial customers for the
Coal to Green, Blextend and Generflex solutions with tenors up to 21 years. These contracts preserve the
value of existing PPAs while securing additional cash flows to build additional renewable capacity with
attractive returns.
• In November 2019, AES Gener completed the acquisition of the operational 110MW Los Cururos wind farm,
located in the Coquimbo Region in Chile. The transaction also includes the acquisition of the La Cebada
substation, which is part of the National Transmission System. The total price paid to Empresas Públicas de
Medellín (EPM) for both assets amounted to US$138 million.
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• Construction of the 531MW Alto Maipo Hydroelectric Project is moving ahead. The total project completion to
date is 88%, with 65 kilometers of tunnels excavated to date. Only 4.3 kilometers of tunneling work is pending
to start generating at the powerhouses.
• Construction is underway at the 80MW expansion of the Andes Solar plant in Chile’s Antofagasta Region, and
at the Mesamávida (68 MW) and Los Olmos (110 MW) projects in southern Chile’s Biobio region. To date,
36MW of the 80MW Andes Solar IIa expansion has been completed.
• The Company is in the final commissioning stage on its Virtual Reservoir Energy Storage pilot project in Chile.
The Company is installing the proof of concept next to the existing Alfalfal I run-of-river hydro plant close to
Santiago. The storage system will be able to supply 10MW over 5 hours and will provide the run of river hydro
plant with the ability to store energy and later inject it into the grid during times of high demand. After its enters
into operation, the Company will evaluate the expansion of the energy storage system up to 250MW at the
hydro complex outside of Santiago. AES Gener is a pioneer and leader in Latin America in energy storage with
52MW in operation in northern Chile.
• The Company is set to begin the construction of renewable energy projects for an extra 253 MW. The Campo
Lindo (73 MW) wind project located close to the town of Mulchén in southern Chile and the second expansion
of Andes Solar (IIb) for an additional 180MW. In addition, AES Gener is has a portfolio under development of
3,789MW of renewable and energy storage projects.
• On June 4, 2019, AES Gener signed a voluntary bilateral agreement with Chile’s Ministry of Energy of Chile
for the Disconnection and Cease of Operations of the Company’s oldest coal-fired units, Ventanas 1 and 2.
The units will enter into the new Strategic Backup Operational State called “ERE,” once the authorities
incorporate this new operational state into the current regulation. Ventanas 1 is slated to go into ERE in
November 2022, while Ventanas 2 will do the same in May 2024. Both units are expected to remain in “ERE”
for up to five years, collecting 60% of capacity payments, before ultimately being disconnected from the
system.
Colombia
• On October 18, 2019, with the presence of the President of the Republic of Colombia, the 21 MW Castilla
solar plant in Colombia was inaugurated the first solar park for Ecopetrol in the municipality of Castilla. The
plant will deliver energy over 15 years to the operations of Ecopetrol at the Castilla oil field. This agreement is
one of the new contracts signed under the "GenerFlex" business solution, which offers a broad spectrum of
energy services to new and existing clients.
• In February 2019 the Company completed the acquisition of five wind generation projects in Colombia in the
Jemeiwaa-Kai Portfolio. Located in an area of abundant wind in the Guajira peninsula, the projects have a
world-class capacity factor of approximately 54%. Most of these projects have guaranteed transmission
capacity. Jemeiwaa-Kai is vital to support the transformation of the Company’s Colombian operations into a
renewable energy growth platform while providing a strong complement to its existing hydro assets, bolstering
long-term contracting efforts.
•
◦ The largest project, 187MW Casa Eléctrica, was awarded a 20-year Reliability Charge for 324 GWh/
year in late-February 2019.
◦ On October 23, AES Chivor was awarded a total of 1.3 TWh/year associated with Jemeiwaa-Kai
projects, Casa Eléctrica and Apotolorru (77 MW) in Colombia’s Regulated Renewable Energy Auction.
• AES Chivor signed a PPA with Gensa for 876 GWh/year starting in 2023 for 15 years. This contract is also
under the “GenerFlex” strategy.
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• In total the Company has signed 2.3TWh in long term contracts in Colombia with regulated and unregulated
customers, with tenors up to to 15 years. These longer tenor contracts provide certainty that allows us to move
ahead with the development of renewable projects in Colombia.
Financial Highlights
• At the Shareholders Meeting held on April 16th, 2020, the shareholders approved a capital increase of US$500
million. The capital raised from the share issuance is set to fund the construction of wind and solar projects to
supply the new renewable energy PPAs.
• The Shareholders voted to distribute approximately US$116 million in dividends during 2020, equal to 100% of
Net Income in 2019. US$35 million will be paid on May 15, 2020. The remaining $81 million will be paid during
2020, on date(s) set by the Board of Directors.
• Fitch and S&P Ratings reaffirmed AES Gener’s BBB- rating on August 6, and September 4, 2019 respectively.
Moody's reaffirmed AES Gener’s investment-grade rating on May 13, 2019, and updated the outlook to Stable
on November 27, 2019.
• In March 2019, AES Gener issued a 2079 hybrid bond for US$550 million at 7.125%, achieving a significant
reduction interest rate compared to the 2073 hybrids bonds issued in 2013 at 8.375%. The proceed from the
2079 bond issuance were used to tender the US$450 million in outstanding 2073 notes as well as other
general corporate uses.
• In October 2019, AES Gener issued a 2079 hybrid green bond for US$450 million at 6.35% The proceed from
the 2079 bond issuance were used to refinance Gener 2021 and 2025 bonds and to fund the acquisition of the
Los Cururos wind farm as well as other to finance green projects. This is the first corporate green hybrid bond
issued in Latin America.
• At the end of October 2019, AES Gener’s subsidiary Empresa Eléctrica Cochrane issued US$915 million in a
mix of international bonds and local notes at a blended rate of 5.9%, expiring in 2034. These two facilities will
be used to prepay Cochrane’s existing Project Finance Facility, allowing the Company to access a corporate-
style, more flexible financing structure, releasing US$70 million of inefficient cash sitting in restricted accounts.
• In December 2019, AES Gener shareholders approved a 5-year share repurchase program at an
Extraordinary Shareholders’ Meeting. The objective of the program is to generate value from the trading of the
appreciation of the Company’s share price. The program includes direct purchases on the stock exchange
under which the Company can repurchase no more than 1% of its shares through direct purchases on the
stock exchange during any 12-month period, and as an alternative the purchase of shares through a block
purchase or open public offer, known as an “OPA” in Spanish, for up to 5% of the Company’ shares.
• On February 27, 2020, the Board of Directors of AES Gener approved the protocol through which the
repurchase of shares will be carried out setting a maximum and minimum purchase price per share as
required by law. The price range may be modified by the Board of Directors at any time.
• To date, AES Gener acquired 24,836,382 shares, representing a 0.2957% stake of the Company’s shares.
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REVIEW OF OPERATIONS BY MARKET

AES Gener operates a diverse portfolio of power generation assets totaling over 5GW in Chile, Colombia, and
Argentina.
Chile
Chile’s National Electric System or SEN, supplies a wide range of customer types, including Chile’s main population
centers, in the center and mining operations in the north, with a diverse generation matrix including thermal, hydro and
renewables. The SEN runs from the northern part of Region I to Region X. AES Gener was the largest power producer
on the SEN during the first quarter of 2020, operating 3,489MW of coal, hydro, diesel, biomass, wind and solar plants,
and 52MW of batteries.
During the first quarter of 2020, hydro generation on the grid decreased by 8% compared to the same period in 2019 in
line with the 16% decline in hydrological inflows in Chile. Average spot prices in the first quarter in Chile were lower
than in the first quarter of 2019 due to a combination of lower fuel prices for coal baseload plants, the start of
operations of the Cardones-Polpaico line, fully interconnecting Chile’s former SIC and SING systems and higher
availability of CCGT’s operating with cheap Argentine natural gas.
Total energy demand increased 2.9% compared to the same period of 2019, for an average monthly demand of 6,588
GWh per month in the first quarter of 2020.
These factors led to a 4% decrease in the average marginal costs of in the north and a 21% decrease in the central
part of the system compared to the same period of 2019.
AES Gener and its subsidiaries, including Guacolda, contributed 26% of the generation on the SEN in the first quarter
of 2020.
The table below shows the main SEN variables as of March 31, 2020, and 2019.
1Q
2020 2019
Demand growth (%) 2.9 % 0.2 %
Average monthly consumption (GWh) 6,134 6,400
Average spot price Northern Chile US$/MWh 48.67 50.61
Average spot price Central Chile US$/MWh 50.18 63.51
In the first quarter of 2020, AES Gener’s sales to unregulated customers decreased by US$42 million due to lower
average contract prices related to the indexation to lower coal prices, offsetting a 30GWh increase in sales volumes.
Likewise, revenues from sales to regulated customers declined US$11 million due primarily to lower average contract
prices linked to lower coal prices, despite the increase of 65GWh. Meanwhile, revenues from the Spot market
increased US$14 million as a result of the 312GWh increase sales volumes.
Transmission revenue grew US$1 million compared to the first quarter of 2019 associated with the indexation to the
new transmission toll structure, due to the incorporation of new infrastructure in the system.
Other Operating Revenues grew US$2 million mainly attributable to an increase in coal sales volume to Guacolda.
Other Operating revenue includes revenue from coal sales and services provided to companies within the AES Gener
Group.
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During the first quarter, fuel costs fell by US$33 million compared to the same period of the previous year due to lower
coal prices, despite a 13% increase in coal-fired generation. The increase in coal-fired generation, as well as the
incorporation of Los Cururos wind farm to the Company's assets, led to an overall 11% increase in generation. Drier
conditions led to a 13% decline in hydro output.
Purchases of energy and capacity decreased by US$5 million due to 23GWh fewer purchases through contracts with
other generators, in addition to lower prices on spot market purchases, offsetting the 80GWh increase in spot
purchases.
Other costs of sales decreased by US$5 million, mainly explained by fewer maintenance costs during the first quarter
of 2020. Cost of Fuel Sales increased by US$3 million in line with the increase in coal sales revenue, registered under
Other Operating Revenues. Meanwhile, transmission costs decreased US$3 million due to a provision adjustment
registered in the first quarter of 2019.
Gross Profit in Chile in the first quarter of 2020 grew by 5% to US$115 million. Lower programmed maintenance costs
and additional margin from Los Cururos wind farm, acquired in November 2019, were the main drivers for the increase.
These variations were partly offset by lower margin contributions from unregulated contract sales, which is partially
compensated by higher margin contributions from regulated contract sales.
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Chile 1Q
2020 2019 Var (%)
Operating Revenue
Regulated customer sales 90,876 102,303 (11)%
Unregulated customer sales 257,325 298,918 (14)%
Spot sales 41,351 27,453 51 %
Transmission revenue 23,054 21,638 7%
Other operating revenues 34,219 32,121 7%
Total Operating Revenue 446,825 482,433 (7)%
Cost of Sales
Fuel consumption (97,035) (129,539) (25)%
Energy and capacity purchases (57,062) (61,638) (7)%
Transmission tolls (25,014) (27,551) (9)%
Fuel cost of sales (28,369) (25,114) 13 %
Depreciation and amortization (58,548) (57,932) 1%
Other cost of sales (65,743) (70,698) (7)%
Total Cost of Sales (331,771) (372,472) (11)%
Total Gross Profit 115,054 109,961 5%
Chile 1Q
Energy Sales (GWh) 2020 2019 Var (%)
Distribution Companies 900 835 8%
Unregulated Customers 2,553 2,523 1%
Spot 40 0 100 %
Spot Re-Routing 610 338 26 %
Total Energy Sales 4,103 3,696 11 %
Energy Purchases (GWh)

Other Generators 225 248 (9)%
Spot 283 203 100 %
Total Energy Purchases 508 451 13 %
Chile 1Q
Net Generation (GWh) 2020 2019 Var (%)
Coal 3,158 2,792 13 %
Hydro 374 428 (13)%
Biomass 2 11 (82)%
Wind 44 100 %
Solar 17 14 21 %
Total Generation 3,595 3,245 11 %
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Colombia
AES Gener’s Colombian subsidiary, AES Colombia, operates 1,020MW of hydro and 21 MW of solar capacity and is
one of the main electric generators in the Colombian National Interconnected System or SIN, a predominantly hydro-
based system.
Conditions in Colombia during the first quarter of 2020 were drier than in the first quarter of 2019. Last year system-
wide inflows were 19% below the historical average in the first quarter, while in 2020, first-quarter inflows were 29%
below average. Lower inflows resulted in year-over-year reservoir levels to decline 10%, comparing the level at the end
of March 2019, to the end of March 2020.
Inflows for the catchment basin of Chivor during the first quarter of 2020 were 37% below the historical average, while
in 2019, first-quarter inflows were 50% below the historical average. Despite higher inflows, Chivor decreased its
generation by 67% in the quarter compared to the same quarter of the previous year, due to the planned dewatering of
the reservoir in the second half of 2019 to perform the works on the water intakes related to the Chivor´s life extension
project during the end of 2019 and beginning of 2020.
Lower hydrological inflows across Colombia drove average spot market prices up 29% in local currency and 16% in US
Dollars in the first quarter, compared to the same period in 2019.
1Q
2020 2019
Demand growth (%) 4.3 % 4.2 %
Average spot price US$/MWh 104.90 90.51
In the first quarter of 2020, revenues in Colombia decreased by US$50 million due to the US$48 million drop in spot
sales as a result of 76% lower spot sales volume due to lower generation despite higher spot prices. As explained
earlier, the 67% decrease in hydro generation is a result of the planned dewatering of the reservoir in the second half
of 2019 to perform the works on the water intakes and increase the useful life of the reservoir. A second dewatering is
expected to be carried out in the second half of 2020 compensating the lower generation of this quarter, assuming
average hydrological conditions.
Contract sales revenues fell US$2 million explained by the impact on average contract prices of the depreciation of the
Colombian peso, despite a 2% increase in Contract sales volume.
The Colombian peso suffered an average 24% devaluation against the US dollar compared to the first quarter of 2019,
which impaired revenues in dollar terms. It’s important to highlight that the FX Forwards that AES Gener executes to
cover this exposure, reflected under Foreign currency exchange differences, partially offset the Colombian Peso
depreciation.
The cost of energy and power purchases fell US$5 million, mainly due to a 164GWh drop in energy volume purchases
from the spot market, partly offset by an additional 41GWh in contracted energy purchases.
Gross Profit in Colombia for the first quarter of 2020 decreased 95% compared to the same period last year, mainly
explained by the decrease in spot sales driven by the Chivor Life Extension Project which led to a 67% decrease in
generation in the first quarter of 2020.
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Colombia 1Q
2020 2019 Var (%)
Operating Revenue
Contract sales 45,166 46,759 (3)%
Spot sales 24,869 72,924 (66)%
Other operating revenues 4,068 4,854 (16)%
Cost of Sales
Depreciation and amortization (2,565) (2,836) (10)%
Total Gross Profit 2,439 45,347 (95)%
Colombia 1Q
Contracts 780 757 3%
Spot 173 733 (76)%
Total Energy Sales 953 1,490 (36)%

Spot 353 517 (32)%
Otras compras 384 343 12 %
Total Energy Purchases 737 860 (14)%
Net Generation (GWh)

Hydro 208 630 (67)%
Solar 8 —
Total Generation 216 630 (66)%
Argentina
The Argentine Interconnected System or SADI is supplied primarily by natural gas-fired plants, in addition to hydro,
coal and nuclear power plants. AES Gener’s subsidiary, TermoAndes operates a 643MW gas-fired combined-cycle
selling electricity to the Argentine system under two separate frameworks: Energía Plus to commercial and industrial
customers, and the Energía Base spot market framework. TermoAndes is also connected to the northern SEN market
in Chile via AES Gener’s InterAndes transmission line.
In February 2017, Argentina’s Secretariat of Energy issued Resolution 19/2017, which improved the Energía Base
program´s energy and power tariffs, now set in US Dollars, and eliminated the retention of payments. This framework
affected the power and energy TermoAndes sold except for what it sold under Energía Plus contracts. The Resolution
established several step-ups in the capacity payment tariffs which took place during 2017, causing the capacity
payment rate to more than double between February 2017 and November 2017.
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In February 2019, Argentina’s Secretariat of Energy issued Resolution 1/2019, which took effect on March 1, 2019. Res
1/2019 reduced the Resolution 19/2017 energy and capacity rates applicable to TermoAndes’ spot sales. Capacity
rates during spring and autumn were reduced from US$7,000/MW per month to US$5,500/MW per month while
remaining at US$7,000/MW per month during the summer and winter months. Spot prices were reduced by $1.6/MWh.
In February 2020, Resolution 31/2020 modified the pricing scheme established by Resolution 1/2019. Energía Base
rates were established in Argentine pesos with monthly adjustments by inflation. Additionally, capacity prices were
reduced while a series of energy payment premiums were introduced for the 50 hours per month of maximum thermal
demand in summer / winter and the 25 hours of maximum thermal demand in autumn / spring, applied to the energy
generated by thermal plants and energy operated by hydroelectric plants.
1Q
2020 2019
Demand growth (%) 4.2 % (7.1)%
During the first quarter of 2020, TermoAndes’ generation fell 83GWh compared to the same period of 2019, while spot
sales volumes increased 1% and demand from Energía Plus customers decreased 10%. The decline in generation
was due to planned major maintenance performed during the first half of 2020.
Spot market revenues declined US$3 million as a result of lower spot prices as established in Res 31/202, despite
11GWh of extra energy volume sales to the spot market, in addition to lower capacity payments due to lower
availability as a result of the maintenance performed during the quarter.
Energía Plus contract sales revenues fell US$3 million, due to a 22 GWh drop energy volume sales, as well as a 16%
decline in average contract prices to 56 US$/MWh in the first quarter of 2020.
Fuel cost in the first quarter of 2020 decreased by US$8 million due to fewer natural gas purchases. This variance was
offset by a US$3 million increase in energy and capacity purchases.
Quarterly gross profit in Argentina decreased by US$2 million driven by lower capacity payments due to programmed
maintenance performed during the period and lower energy and capacity tariffs associated with Resolution 31/2020.
These negative variation were partly offset by the energy rate premium established in Resolution 31/2020 for energy
delivered during hours of peak thermal demand and higher margins from contract sales due to lower operating costs.
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Argentina 1Q
2020 2019 Var (%)
Ingresos ordinarios
Contratos 11,009 14,485 (24)%
Ventas Spot 10,780 13,422 (20)%
Otros ingresos ordinarios 342 1,200,000 — ---
Total ingresos ordinarios 22,131 27,907 (21)%
Costos de venta
Consumo de combustible (570) (8,359) (93)%
Compras de energía y potencia (3,213) — ---
Depreciación y amortización (5,781) (5,694) 2%
Otros costos de venta (4,350) (3,722) 17 %
Total costos de venta (13,914) (17,775) (22)%
Total ganancia bruta 8,217 10,132 (19)%
Argentina 1Q
Contracts 193 215 (10)%
Spot 770 759 1%
Total Energy Sales 963 974 (1)%

Spot 72 — ---
Total Energy Purchases 72 — ---
Net Generation (GWh)

Natural Gas 891 974 (9)%
Total Generation 891 974 (9)%
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REVIEW OF FINANCIAL RESULTS
1Q
2020 2019 Var (%)
Contract energy and capacity sales 402,898 459,882 (12)%
Spot energy and capacity sales 78,478 116,382 (33)%
Transmission revenue 23,054 21,638 7%
Other operating revenue 37,913 36,316 4%
Energy and capacity purchases 120,572 126,512 (5)%
Fuel consumption 97,605 137,898 (29)%
Fuel cost of sales 28,369 25,114 13 %
Transmission tolls 25,014 27,551 (9)%
Other cost of sales 63,092 71,406 (12)%
Operating personnel costs 15,087 13,834 9%
Depreciation 65,552 65,583 —%
Amortization 1,342 880 53 %
Gross Profit 125,710 165,440 (24)%
Other operating revenues 876 712 23 %

Selling, general and administrative (32,530) (25,447) 28 %
expenses
Other operating expense (347) (798) (57)%
Other gains and losses (5,902) (12,990) (55)%
Financial income 1,551 2,335 (34)%
Financial expense (5,438) (28,762) (81)%
Equity in earnings of associates 6,592 4,080 62 %
Foreign currency exchange differences 11,075 (846) (1,409)%
Net Income Before Tax 101,587 103,724 (2)%
Income tax (24,634) (35,038) (30)%

Net Income After Tax 76,953 68,686 12 %
Income Attributable to
Shareholders of Parent 76,030 63,281 20 %
Non-controlling interest 923 5,405 (83)%
Net Income 76,953 68,686 12 %
Operating Income
Operating Revenue fell US$92 million in the first quarter of 2020, compared to the same period in 2019, reaching US
$542 million. The decline was driven primarily by lower spot sales in Colombia, lower contract sales in Chile and to a
lesser extent Argentina. These negative variations were partially offset by higher spot sales and Chile.
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Cost of Sales
Cost of Sales decreased US$52 million in the first quarter of 2020. The main drivers were lower fuel costs as a result of
lower coal-related expenses in Chile due to lower coal prices and to a lesser extent, lower fuel expenses in Argentina,
in addition to lower energy and capacity purchase expenses in Chile and Colombia. Higher fuel sales costs in Chile
partially offset the previously mentioned positive effects.
Gross Profit
Gross Profit decreased by 24% to US$126 million in the first quarter of 2020 compared to the first quarter of 2019. This
quarterly performance is explained by a US$43 million reduction in Colombia and a US$2 million decline in Argentina,
partially offset by a US$5 million improvement in Chile.
1Q
2020 2019 Var (%)
Operating Revenue
Chile 446,825 482,433 (7)%
Argentina 22,131 27,907 (21)%
Colombia 74,103 124,537 (40)%
Consolidation adjustments (716) (659) 9%
Cost of Sales
Chile (331,771) (372,472) (11)%
Argentina (13,914) (17,775) (22)%
Colombia (71,664) (79,190) (10)%
Consolidation adjustments 716 659 9%
Total costs of sales (416,633) (468,778) (11)%
The Consolidation Adjustment line mainly accounts for intercompany operations between AES Gener in Chile and the
Colombian subsidiary, AES Chivor.
Selling, General and Administrative Expenses
SG&A costs grew US$7 million in the first quarter of 2020 compared to the same period of 2019. The main driver of this
increase was higher technology costs related to the execution of the Company's digitization strategy in addition to
higher insurance and consulting expenses.
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EBITDA
1Q
2020 2019 Var (%)
Revenue 542,343 634,218 (14)%
Cost of Sales (416,633) (468,778) (11)%
Gross Profit 125,710 165,440 (24)%
Depreciation (-) 66,894 66,462 1%
Operating Margin 192,604 231,902 (17)%
Other Operating Revenues 876 712 23 %
Administrative Expenses (32,530) (25,447) 28 %
Other operating Expense (347) (798) (57)%
ARO Provisions 1,533 1,373 12 %
Non-financial derivative valuation* — — 100 %
EBITDA 162,136 207,742 (22)%
(*)Non-financial derivative valuation refers to contracts in Colombia where there is no obligation to deliver energy under
certain circumstances.
AES Gener achieved an EBITDA of US$162 million in the first quarter of 2020, 22% below that of the same period in
2019.
This negative variation is mainly explained by lower EBITDA contributions from Colombia and Argentina.
Chile’s quarterly EBITDA remained stable at US$148 million compared to the first quarter of 2019 due to lower
programmed maintenance costs and additional margin contributions from the Los Cururos, a wind farm acquired in
November 2019. These variations were partly offset by lower margin contributions from unregulated contract sales,
which were partially compensated by higher margin contributions from regulated contract sales.
Colombia’s quarterly EBITDA fell US$43 million due a 67% drop in generation due to the planned dewatering of the
reservoir in the second half of 2019 to perform the works on the water intakes and extend the plant's useful life.
Argentina´s EBITDA decreased US$2 million driven by lower spot revenues associated with lower generation due to
programmed maintenance performed during the period and lower spot sales rates introduced by Res 31/2020 which
took effect February 1, 2020, partly offset by higher margin contributions from contract sales.
1Q
2020 2019 Var (%)
Chile 147,553 148,106 —%
Colombia 927 44,025 (98)%
Argentina 13,656 15,611 (13)%
EBITDA Total 162,136 207,742 (22)%
15
Financial Results
1Q
2020 2019 Var (%)
Other gains and losses (5,902) (12,990) (55)%
Financial income 1,551 2,335 (34)%
Financial expense (5,438) (28,762) (81)%
Equity in earnings of associates 6,592 4,080 62 %
Foreign currency exchange differences 11,075 (846) (1,409)%
Other Losses decreased by US$7 million in the first quarter, primarily due higher expenses in 2019 associated with the
refinancing of AES Gener’s 2073 Hybrid Bond in March 2019 and the sale of subsidiary Eléctrica Santiago and
Compañía Transmisora del Norte Grande. Losses related to projects under development.for US$6 million were
registered in the first quarter of 2020, partly offsetting the decline in losses compared to 2019.
Financial Expenses decreased by US$23 million, primarily explained by an adjustment recorded in the first quarter of
2020 associated with the normalization of capitalized interests of the Alto Maipo project.
Equity in Earnings of Associates increased US$3 million in the first quarter of 2020 compared to the same period in
2019 due to higher earnings at Guacolda. Guacolda's net income increased due to better operational results, as a
result of higher spot sales, lower maintenance, depreciation and tax expenses which were partially offset by higher FX
losses.
At AES Gener, Foreign currency exchange differences registered a US$12 million positive variation in the first quarter
of 2020 compared to the same period of 2019. This variance is mostly related to gains on FX derivatives instruments to
hedge the exposure to Colombian Peso partly offset by higher losses in Argentina due to an 8% devaluation in the
Argentine Peso and the effect on account receivables and tax assets in Argentine pesos.
December 31, December 31,

March 31, 2020 Variación March 31, 2019
2019 2018 Variación
Chile ($/US$) $ 852.03 $ 748.74 14 % $ 678.53 $ 694.77 (2)%
Colombia (Col$/US$) $ 4,064.81 $ 3,277.14 24 % $ 3,174.79 $ 3,249.75 (2)%
Argentina (Ar$/US$) $ 64.47 $ 59.89 8% $ 43.35 $ 37.70 15 %
Income Tax
In the first quarter of 2020, income tax expense fell 30% to US$25 million. The main reason for the decrease is lower
pre-tax income in Colombia.
Net Income
AES Gener reported a Net Income Attributable to Shareholders of Parent of US$76 million for the first quarter of 2020,
up US$63 million compared to the first quarter of 2019.
16
Cash Flow
The ending balance of cash and cash equivalents as of March 31, 2020, was US$378 million, 28% lower than at the
end of the first quarter of 2019.
AES Gener’s reported a positive net cash flow of US$44 million in the first three months of 2020, compared with the
positive flow of US$205 million in the same period of 2019.
1Q
2020 2019 Var (%)
Net cash from operating activities 67,654 138,516 (51)%
Net cash from investing activities (150,215) (120,174) 25 %
Net cash from financing activities 126,815 186,954 (32)%
Total Net Cash Flow for the Period 44,254 205,296 (78)%
Effects of Foreign Exchange Variations (7,006) (511) 1,271 %
Cash at the beginning of the period 340,861 322,373 6%
Total Cash at the End of the Period 378,109 527,158 (28)%
Net Operating Cash Flow totaled US$68 million in the first quarter of 2020, down US$71 million year-over-year, mainly
due to the US$85 million net effect of lower receipts from customers driven by lower sales and the Stabilization Fund
(Fondo de Estabilización) implemented by the Chilean Government in November 2019. This variance is partially offset
by lower payments to suppliers and the settlement of a derivative for US$15 million in 2020.
Net Investment Activities Cash outflows experienced a negative variation of US$30 million compared to the first three
months of 2019, to US$150 million. This was mainly due to higher Purchases of Property, Plant and Equipment at Alto
Maipo and other renewable projects currently under construction.
Net Financing Cash inflows decreased US$60 million compared to the first quarter of 2019, to a US$127 million inflow
as of March 31, 2020 compared to the US$187 million inflow in the same period of 2019. The main driver of the
decrease was the net positive effect of refinancing process during the first quarter of 2019 including the issuance of the
US$550 million in hybrid notes due in 2079 hybrid notes in March, offset in part by higher loan repayments primarily
associated with the US$450 million tender of 2073 hybrid notes. Higher interest payments of US$24 million also
contributed to this negative variation. An increase in short term loan disbursements in the first quarter of 2020
compared to the same period in 2019 partly offset these variances.
It’s worth mentioning that the Company has adjusted the way it reports its cash low; dividends and interest payments
have been moved from operating to financing cash flows and the 2019 financials were adjusted in line with this.
Financial Debt
As of March 31, 2020, AES Gener has a total debt of US$4,174 million, of which approximately 91% had a fixed
interest rate, including a significant portion of the debt held by the subsidiary Alto Maipo which has interest rate swaps.
The remaining 9% of the Company’s debt is subject to variable interest rates.
As of March 31, 2020, approximately 97% of AES Gener’s debt was denominated in USD, including the Chilean UF
denominated bond issued in December 2007 for which a cross-currency swap was executed. Of the remaining debt,
1% was denominated in Chilean UF (former Eléctrica Santiago’s bonds) and 2% in Colombian pesos (the leasing
executed by AES Chivor to finance the Tunjita Project, and short-term debt at Chivor).
17
Schedule of Maturities as of
Average March 31, 2020
Interest
Rate 2020 2021 2022 2023 2024 2025 +
Gener US$ 550 M Junior Notes due 2079 550.00 7.13% — — — — — 550.00
Gener US$ 450 M Junior Green Notes due
2079 450.00 6.35% — — — — — 450.00
Gener US$ 409 M Senior Notes due 2025 117.49 5.00% — — — — — 117.49
Gener UF$ 4.4 M Senior Notes due 2028 140.94 7.34% 15.66 15.66 15.66 15.66 15.66 62.64
ESSA UF$ 1.0 M Senior Notes due 2024 26.96 10.38% 1.35 1.82 3.28 8.02 12.49 —
Gener ST Loan 90.00 3.87% 90.00 — — — — —
Angamos US$ 600 M Senior Secured
Notes due 2029 409.99 4.88% 43.18 43.18 43.18 43.18 43.20 194.07
Angamos US$ 199 M Term Loans due
2029 142.28 4.50% 14.99 14.99 14.99 14.99 14.96 67.36
Cochrane US$ 430 M Secured Bond due
2027 430.00 5.50% 41.80 47.47 55.38 59.90 60.11 165.34
Cochrane US$ 445 M Syndicated Loan

due 2034 445.00 6.25% — — — — — 445.00
Alto Maipo Fixed Portion 939.99 6.68% — — — 20.99 10.63 908.37
Chivor ST Loan (COP) 54.86 4.50% 36.9 17.96 — — — —
Total Fixed Rate 3,797.51 6.19% 243.88 141.08 132.49 162.74 157.05 2,960.27
90.97 %
Alto Maipo Floating Portion 344.42 5.35% — — — 7.69 3.90 332.83

Tunjita 32.44 4.88% 2.40 3.21 3.21 3.21 3.21 17.20
Total Variable Rate 376.86 5.31% 2.40 3.21 3.21 10.90 7.11 350.03
9.03 %
Total 4,174.37 246.28 144.29 135.70 173.64 164.16 3,310.30
Amortization Schedule (US$ mn)

3000
2,681
2000
1000
264 287
144 136 174 164 179 164
0
2020 2021 2022 2023 2024 2025 2026 2027 2028 +
18
RISK ANALYSIS
MARKET AND FINANCIAL RISK
Market risks include the following three categories: foreign currency risk, interest rate risk, and commodity price risk.
Financial Risk relates to the potential occurrence of events, which could have a negative financial impact on the
Company and specifically includes credit risk and liquidity risk.
Foreign Currency Risk
Except for operations in Colombia, the Company’s functional currency is the US Dollar ("USD") given that its revenue,
expenses, and investments in equipment and debt are mainly denominated in or linked to the USD. Also, the Company
is authorized to file and pay its income taxes in Chile in USD. There is an exchange rate risk associated with any
revenue, expenses, investments, and debt denominated in any currency other than USD. The main items denominated
in Chilean pesos ("CLP") are some energy receivables and tax credits primarily associated with VAT.
As of March 31, 2020, AES Gener maintained several currency forwards with banks to mitigate its exposure to foreign
exchange variations related to the collection of energy sales and VAT payments. Even though most of the Company’s
energy supply agreements have USD denominated prices, payments are made in CLP at an exchange rate that is
fixed for a specific period of time. Given the Company's net asset position in CLP as of March 31, 2020, the impact of
10% devaluation in the exchange rate of the Chilean peso compared to the USD would have resulted in a realized
negative impact of approximately US$5 million in net income for AES Gener for the period.
During the first quarter of 2020, approximately 79% of operating revenue and 86% of the Company’s costs of sales
were denominated in USD compared to 81% of operating revenue and 83% of the costs of sales during the same
period of 2019.
The functional currency of Chivor, the Company’s Colombian subsidiary, is the Colombian peso ("COP") since most of
its revenue, particularly contract, and spot sales and operating costs are linked to the COP. During the first quarter of
2020, contract and spot sales in Colombia represented 14% of the Company’s consolidated operating revenue,
compared to 19% during the same period of 2019. Additionally, AES Chivor’s dividends are denominated in COP,
although financial hedge instruments are used to fix the amount to be distributed in USD. Given AES Chivor's net asset
position in USD as of the end of March 2020, a 10% devaluation in the COP/USD exchange rate would have
generated a negative impact of approximately US$78,000 to AES Gener’s net income.
Spot prices in the Argentine market were denominated in USD until January 2020, however from February onwards
spot prices are denominated in Argentine pesos ("ARS") as per Resolution 31/2020. Given TermoAndes' net asset ARS
as of March 31, 2020, a 10% devaluation in the ARS/USD exchange rate would have generated a negative impact of
approximately US$526,000 in AES Gener’s net income.
In consolidated terms, investments in new plants and maintenance equipment are principally USD denominated. Short-
term investments are also mostly held in USD. As of March 31, 2020, 76% of short-term investments and current
account balances were in USD, 12% in CLP, 10% in COP, and 2% in ARS. Cash balances in Argentina are subject to
exchange rate volatility, specific to the Argentine market. At the end of March 2019, 81% of investments and balances
were in USD, 8% in CLP, 9% in COP and 2% in ARS.
With regards to non-USD denominated debt (bank loans and bonds), AES Gener has executed hedges in the form of
cross-currency swaps to reduce the associated exchange rate risks. AES Gener executed a cross-currency swap for
the Chilean UF-denominated bonds issued in 2007 for approximately US$219 million, AES Gener executed exchange
rate swaps with the same amount and term of the debt. Current historical balance is US$172 million, maturing in 2028.
At the end of March 2020, 97% of the debt of AES Gener and its subsidiaries is USD denominated, including the
previously mentioned N series bonds and the associated swap.
19
The following table shows the composition of the debt by currency based on principal to be repaid, as of March 31,
2020, and December 31, 2019:
March 31, 2020 December 31, 2019

USD 97.0 % 97.0 %
U.F. 1.0 % 1.0 %
COP 2.0 % 2.0 %
Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates
primarily to the Company’s long-term debt obligations with variable interest rates.
AES Gener manages its interest rate risk by having a significant percentage of its debt at a fixed rate or with interest
rate swaps, to fix it. As of March 31, 2020, AES Gener had interest rate swaps for a large part of the debt associated
with its subsidiary Alto Maipo. A 10% increase in variable interest rates would not have a significant impact on net
income as 91% of the Company's debt is at fixed interest rates or has rate swaps.
The following table shows the composition of debt by type of interest rate as of March 31, 2020, and December 31,
2019.
March 31, 2020 December 31, 2019

Tasa fija o con swap de tasa 90.97 % 92.50 %
Tasa variable 9.03 % 7.50 %
Commodity Price Risk
AES Gener is affected by the volatility of certain commodity prices. The fuels used by the Company, mainly coal and
diesel are commodities with international prices set by market factors outside of the Company’s control.
Since AES Gener’s portfolio has a significant component of thermal generation, fuel costs represent a significant
portion of the cost of sales.
The price of fuel is a key factor in plant dispatch and spot prices both in Chile and Colombia.
Currently, most of the Company’s PPAs in Chile include clauses that adjust prices based on variations in the price of
coal according to index mechanisms and adjustment periods specified in each contract, in order to mitigate the risk of
major changes in the cost of fuel.
Currently, AES Gener’s contracted energy is balanced with energy generation of facilities with a high probability of
dispatch (efficient generation).
In Argentina, the Company’s subsidiary TermoAndes purchases natural gas at a fixed price under short-term contracts,
reflected in the energy contract price fixation mechanism.
A 10% increase in the cost of diesel is estimated to have not had a material impact on the Company's profits in the first
quarter of 2020.
20
Credit Risk
Credit risk relates to the credit quality of counterparties with which AES Gener and its subsidiaries establish
relationships. These risks are reflected primarily in accounts receivables and financial assets, including bank and other
deposits and other financial instruments.
With regards to accounts receivable, AES Gener’s counterparties in Chile are mainly distribution companies and high
solvency industrial customers, and a significant percentage of these customers or their parent companies have local
and or international investment-grade credit ratings. Additionally, sales by the AES Gener Group companies on the spot
market must be made to other generators, members of the ISO, in accordance with the economic dispatch determined
by this entity.
In Colombia, AES Chivor performs risk assessments of its counterparties based on an internal credit quality evaluation,
which in some cases may include guarantees.
In Argentina, the main counterparties are CAMMESA (Compañía Administradora del Mercado Mayorista Eléctrico S.A.)
Argentina’s wholesale electric market administrator, and large unregulated consumers with contracts under the Energía
Plus program. TermoAndes carries out internal credit evaluations of its unregulated customers and therein include
guarantees to secure payments.
Financial investments by AES Gener and its subsidiaries such as mutual funds, time deposits, and derivatives, are
executed with local and foreign financial institutions, which have national and or international credit ratings greater than
or equal to “A” under the S&P and Fitch scale and “A2” under the Moody’s scale. Similarly, derivatives for financial debt
are executed with first-class international entities. Cash, investment, and treasury policies direct the management of
the Company's cash portfolio and minimize credit risk.
Liquidity Risk
Liquidity risk relates to the funding requirements to meet payment obligations. The Company's objective is to maintain
a balance between continuity of funding and financial flexibility, through internally generated cash flows, bank loans,
bonds, short-term investments, committed credit lines, and uncommitted credit lines.
As of March 31, 2020, AES Gener had US$378 million in available funds including, cash and cash equivalents.
Meanwhile, as of the end of March 2019, the balance totaled US$341 million in cash and cash equivalents. The
balance of cash and cash equivalents includes cash, term deposits with an expiration of less than 90 days, securities,
low risk immediately available mutual funds in USD, short-term repurchase agreements, and fiduciary agreements.
As of March 31, 2020, AES Gener had approximately US$250 million in committed lines of credit and US$90 million of
uncommitted and unused lines of credit. It's important to mention that in March 2020, the Company disbursed US$96
million from an uncommitted credit line to fortify its cash position to overcome potential liquidity constrains that may
arise from the COVID-19 crisis.
For more detail of the cash restrictions, see Note 8 in the Financial Statements.
OPERATIONAL RISKS
Operational risks relate to the possibility of future outages or deficiencies that can negatively affect the Company’s
strategic operational and or financial objectives.
21
Hydrology
AES Gener’s operations in Chile and Colombia may be affected by hydrological conditions, as hydrology is key to plant
dispatch and prices on both grids. The Company uses proprietary statistical models to evaluate the risks associated
with its contractual commitments. In general terms, AES Gener’s commercial strategy in Chile is to execute long-term
contracts for its efficient generation plants, maintaining other more expensive units as a backup. In Colombia, the
commercial strategy focuses on the optimal use of the reservoir with the general objective of contracting on between
on average 75% to 85% of the expected generation.
Currently, the efficient generation of AES Gener’s facilities in Chile is balanced with contracted volume, which mitigates
most of the exposure to hydrology variations, and additionally, the Company has backup facilities that limit maximum
exposure.
Operational Failures and Maintenance
Mechanical failures, accidents, planned or unplanned maintenance that affect the availability of the Company’s efficient
capacity could have a material adverse effect on results.
Although the Company performs regular maintenance and operational enhancements to guarantee the commercial
availability of its generation plants and operational insurance policies remain in effect, mechanical failures or accidents
could result in periods of commercial unavailability. Significant periods of unavailability of AES Gener’s efficient plants,
as a result of mechanical failure or maintenance (planned or unplanned), would require the Company to meet its
contractual obligations by using more expensive backup generation or by purchasing energy on the spot market. This
could result in higher costs that would adversely affect operating results. The variable costs of the Company’s backup
facilities in Chile limit the maximum exposure to this risk.
Projects under construction
The execution of the Company’s investment projects under development depends on numerous factors that could
defer from the original projections. These factors include increases in costs of construction or investment in equipment,
potential delays, difficulty in finding skilled labor, financing costs, and the effect of potential delays or difficulties in the
regulatory authorization and permit process, including potential litigation or lawsuits. It should be noted that adequate
project development includes making investments related to diverse project areas such as studies, easements, land
preparation and construction of roads, among others, before the approval and final execution of the project.
Currently, power generation projects are facing a high level of opposition from organized groups or local communities.
The Company cannot ensure that this opposition will not affect projects under construction. In its interest of being a
good neighbor and according to its “Policy for Relations with Local Communities,” AES Gener, works to be locally
respected and valued by its excellent economic, social and environmental performance and its contribution to the
sustainable development to the communities where it operates.
Decoupling Risk
Given certain transmission restrictions in Chile due to the concentration of renewable energy plants, there can be a
decoupling between injection and withdrawal prices. The effect of the difference in price is assumed by the generation
companies and can, in turn, affect their operating margins. Currently, there are contracts in which this risk cannot be
passed through; however, clauses to mitigate this risk are being negotiated in new contracts with unregulated
customers.
22
It should be noted that the Cardones-Polpaico transmission line came online at the end of May 2019, allowing for the
full interconnection between the former northern and central grids. This link has contributed significantly to reduce
energy prices differentials between both regions while reducing transmission constraints that generated significant
variations in prices between different nodes of the system. All this contributes to a significant reduction in the
decoupling risk.
Regulatory Risks
AES Gener, its subsidiaries and related companies are subject to several different aspects of regulation in the
countries in which they operate. Modifications to the existing legislation could adversely affect the Company’s financial
results.
AES Gener cannot guarantee that the laws or regulations in the countries in which it operates or has investments will
not be modified or interpreted in a manner that could adversely affect the Company or guarantee that governmental
authorities will grant any requested approval. AES Gener however actively participates in the development of the
regulatory framework, submitting comments and proposals to the proposed regulations presented by authorities.
On March 18, 2020, the Government of Chile declared a constitutional state of emergency amid the COVID-19
pandemic. In this context, various legislative bills were presented in Congress, to suspend the cut-off of basic utilities -
electricity, water and telecommunications - during the health crisis, and defer payments of accounts of certain
vulnerable groups of people. To date, two bills are in the second constitutional process in Congress, one in the
Chamber of Deputies, and the the other one in the Senate, both with similar intentions, varying in some aspects such
as the universe of beneficiaries, duration of the benefit and potential financing options for such measures. Companies
affected in the case of the Electric Industry should be distribution companies. Notwithstanding the above.mentioned,
potential effects on the chain of payments are being analyzed by the Company.
Likewise, on March 17, 2020, the Colombian National Government declared a State of Economic, Social and
Ecological Emergency due to COVID-19. Decree 517 was issued by the Ministry of Mines and Energy, which ruled the
option of deferring the payment of invoices to low-income residential users for a period of 36 months. Similarly, the
Energy and Gas Regulatory Commission issued two resolutions, the first one cancels the limitation schemes of supply
to commercialization agents with payments default to the system, and the second which gives them the option of
deferring payments to the system both on the spot market and under contracts for April and May transactions, with low
interest rates through government credit lines, local banks or rates offered by generation companies. Potential effects
on the chain of payments are being analyzed by the Company.
Market Regulatory Framework
As power generation companies, AES Gener, its subsidiaries, and related companies are subject to regulation in
diverse aspects of their business. The current regulatory framework, which governs all electricity supply companies,
has been in effect in Chile since 1982 and in Colombia since 1994.
In November 2019, Chilean Law 21,185 was enacted creating an energy price stabilization mechanism affecting
regulated contracts with reference in the first half 2019 energy prices. Through this mechanism, future increase in
prices will be temporarily borne by generation companies supplying these regulated contracts, financing up to US
$1,350 million. Energy prices are expected to decrease from 2021 onwards, so the difference between fixed tariff and
contract price evolution will be used to repay pending payments to suppliers. AES Gener has the least exposure to the
regulated market among the major power Generation companies in Chile, with only 12% of the market.
23
Also, in November 2019, the Chilean Ministry of Energy presented its Flexibility Strategy by which will review, among
other matters, the improvement of the market for the development of a flexible system, review of the regulatory
framework for storage systems and measures associated with the system’s flexible operation. This process will run
until May 2022 and it’s expected that the current market compensation mechanism will be reviewed, potentially
affecting AES Gener’s capacity revenues.
On December 21, 2019, the Ministry of Energy enacted Short Distribution Law 21.194, which lowered distribution
companies’ return rates to 6% after tax. The Ministry is currently discussing the Long Distribution Bill, which would
address the creation of a commercialization player and a lower limit to migrate the migration to the free customer
segment of the system, an issue that must be addressed considering the regulated contracts already awarded in the
last long-term bids supplying energy until 2040.
On June 4, 2019, generation companies signed a voluntary bilateral agreement with Chile’s Ministry of Energy of Chile
for the Disconnection and Cease of Operations of certain coal-fired units. The agreement establishes that the plants
disconnected from the system may enter into an operating "Strategic Operating Reserve State" (ERE), whose objective
is to provide security guarantees to the National Electric System. The agreement will materialize the disconnection of
approximately 1,000 MW of coal-fired power plants between 2019-2024, subject to the regulatory changes described in
said agreements take full effect. In the first quarter of 2020, the Ministry of Energy closed the regulation’s Public
Consultation process including these regulatory modifications, and it is expected that this regulation will be submitted
to the Comptroller General of the Republic at the end of the second quarter for final approval.
In Colombia, the Ministry of Mines and Energy is seeking to modernize the current institutional and regulatory
framework to ease the systems' transformation mainly due to the massive incorporation of renewable energy into the
system. Reforms are being analyzed by incorporating new agents, technologies and transactional schemes in the
energy markets. The modernization proposals have five main focuses, of which focus I: Competition, Participation and
Market Structure and focus V: Institutional and Regulatory, are relevant to the market served by AES Gener. Specific
subjects of interest that are being analyzed are i) migration to a uni-nodal scheme at multi-nodal prices with energy,
losses and congestion components; ii) a modification of the Reliability Charge scheme and iii) the creation of an Expert
Panel to solve conflicts between agents. The final documents were presented at the beginning of the year and all
proposals will be harmonized to define the roadmap. This process will be led by an expert consultant with IDB
financing. Regulatory rules for the intraday market and binding dispatch are still pending, in addition to the
development of complementary services, which will be focused on improving the operation due to the entry of
renewable generation to the energy matrix.
Meanwhile in Argentina, on February 2, 2017, Resolution 19/2017 of the Secretariat of Electric Energy was published
in the official bulletin. The new regulation modifies the remuneration framework for energy and power to the generators
included in Resolution S.E. 95/2013 and its amendments. In the case of TermoAndes, these changes impact the power
and energy not committed under the contracts of Energía Plus. The new regulation establishes that prices must be set
in USD, to be converted into ARS at the exchange rate at the end of the month of the corresponding transaction. All the
concepts determined in the resolution will be paid at the expiration date of the economic transaction of each month,
eliminating the retention of unpaid amounts and the accumulation of receivables with CAMMESA.
During February 2017, Argentina’s electricity regulator ENRE carried out the Integral Rate Review (RTI) of the electric
energy transportation system, setting new tariffs for users of high voltage transport and trunk distribution systems,
which affect TermoAndes.
On November 28, 2017, the Argentine Electric Energy Agency published Resolution 1085-E / 2017, which establishes
a new methodology for the distribution of transmission costs. Per this resolution, most of the costs will be borne by the
final transmission users (demand) and the generators will pay the maintenance cost of the transmission assets that are
exclusively dedicated to them.
As mentioned in the section of the Argentine Market, on March 1, 2019, the Secretariat of Energy issued Resolution
1/2019 that modified energy prices for thermal generation and prices of power for periods of lower demand. Energy
prices for thermal generators were reduced by US$1.6/ MWh. Power prices, meanwhile, remained unchanged for the
24
periods of winter and summer, while they were reduced to US$5,500/MW-month for the rest of the year. Additionally,
the resolution defined an adjustment factor that ponders the real dispatch of the units to correct the power payments.
The CREG in Colombia, through a group of consultants, continues to develop mechanisms for adjusting and
developing the following aspects: i) Network Code Update, ii) Intraday dispatch and binding dispatch and iii) ancillary
services. Agents and industry associations are working to present counterproposals that avoid radical changes in the
remuneration of current services or that affect the dispatchability of resources through asymmetric and discriminatory
rules.
In February 2020, Resolution 31/2020 modified the pricing scheme established by Resolution 1/2019. Generation
companies’ remuneration is established in Argentine pesos and is monthly adjusted by inflation with a combined index
based 60% in local inflation (IPC) and 40% IPIM. Additionally, reductions in capacity prices were established (for themo
generation by 14% in summer /winter and 18% the rest of the year) and an additional energy payment was introduced
for 50 hours per month of maximum thermal demand in summer / winter and 25 hours of maximum thermal demand in
autumn / spring, applied to the energy generated by thermal plants and energy operated by hydroelectric plants. On
April 8, 2020, the Secretary of Energy instructed by means of a Note to Cammesa to postpone until further notice, the
application of Annex VI of Resolution 31/2020, with regards to the inflation adjustments in the mentioned resolution, to
transactions determined in Argentine pesos.
The Company cannot guarantee that the laws or regulations of the countries in which the Company operates or has
investments will not be modified or interpreted in a way that could adversely affect the Company or guarantee that
authorities grant requested authorization. AES Gener participates actively in the development of the regulatory
framework, making comments and proposals to the bills presented by the authorities.
Environmental Regulation
AES Gener, its subsidiaries, and associates are subject to environmental regulations, which, among others, require
environmental impact studies for project development and regulatory permits. AES Gener cannot guarantee that
governmental authorities will effectively grant any requested environmental approval.
New and increasingly demanding environmental regulations are continuously under development, which may modify
operations and or require additional investments to comply with such regulation.
On August 30, 2017, Decree 38/2017 was enacted, which established a new Atmospheric Pollution Prevention Action
Plan for Huasco and the surrounding zone (the “Prevention Plan”). The Prevention Plan for Huasco establishes
additional requirements for particulate matter (“PM”) emission control for Guacolda, being the main ones:
i. Keep stack PM emissions below 30 mg/m3N for each stack, and below 730 ton/year on aggregate of all stack
emissions
ii. Reduce PM emissions on coal transfer points and coal conveyors
iii. Pave the ash deposit access road
iv. Sweep and vacuum the PM that falls during material transportation, wind action, or vehicle movement.
To comply with these requirements a “Integral Control Plan” was submitted to the authorities in February 2018. The
Regional environmental authority approved the Control Plan on February 26, 2019.
On March 30, 2019, a new Environmental Prevention and Decontamination Plan for Concón, Quintero, and
Puchuncaví came into effect by means of supreme decree 105/2019. AES Gener’s Ventanas Complex is located in
this area.
In this Plan, the Ministry of the Environment establishes emission control measures to comply with current air quality
regulations in five years. For the Ventanas Complex, it establishes new annual emission limits for PM, SO2, and NOx;
and, it determines measures for emissions control of the coal yard of the plant.
Additionally, the Plan dispose, in article 49, the presentation of operational plans by industrial establishments in order
to achieve the reduction of certain percentages of emissions. Thus, through Resolution No. 7 dated June 12, 2019, the
25
Regional Ministerial Secretariat for the Environment approved the operational plan for the Ventanas Complex of AES
Gener SA, which contemplates additional reductions to manage “Critical Episodes" this is when "low" ventilation
conditions are verified.
On May 10, 2019, a new SO2 hourly air quality standard of 350 g/m3N took effect, modifying the previous stander
which only had annual and monthly emission limits.
Summary Ventanas Complex

On October 1st, 2019, the Superintendency of the Environment (the "SMA") notified AES Gener about certain breaches
associated with its environmental license, initiating through the sanctioning process through Exempt Resolution N° 1 /
ROL D-129-2019.
In total 4 charges were filed by the SMA. In summary these charges include:
a. Exceeding generation limits set by the environmental license,
b. Do not reduce air emission levels in episodes of poor air quality standards,
c. Exceeding discharge limits of seawater for certain parameters;
d. Exceeding noise limits established for the neighborhood.
According to the Chilean Environmental Regulation, the Company can submit for consideration and approval of the
SMA a "Compliance Program" with actions intended to correct the alleged breaches of the environmental license. If
approved by the SMA, in a way that the Company can fully comply with all the proposed actions, the presentation of
the Compliance Program entails the suspension of the administrative procedure. Otherwise, if the proposed actions by
the SMA are extremely difficult to comply with, the Company can withdraw the Compliance Program and proceed with
challenging the charges made by the SMA.
After execution, if the Company satisfactorily approves and fulfills the Compliance Program, the process is terminated
without sanctions and does not generate further actions by the environmental authority.
On October 28, 2019, the Company presented the first proposal for the Compliance Program to the SMA, in order to
propose actions to correct the alleged infringements, which is under review by the environmental authority, with no
observations to date.
Summary Guacolda Complex

Likewise, on October 14, 2019, the Superintendency of the Environment (the "SMA") notified AES Gener about certain
breaches with its environmental license at the Guacolda plant, initiating through a sanctioning process through Exempt
Resolution N ° 1 / ROL D-146-2019.
In total, 4 charges were filed by the SMA. In summary, these charges include:
a. Failure to comply with all measures to mitigate atmospheric emissions (for example, vehicle traffic on unpaved
roads, failure to install filter in the limestone storage, failure to fully encapsulate conveyor fuel belts, not
installing waterproof cloth around the coal yard, inadequate washing of ash transporting trucks from the central
dump to ash disposal),
b. Failure to comply with mitigation measures to avoid discharges of solid fuel into the sea
c. Failure one day of temperature monitoring of water intake and discharge in Unit 3
d. Exceeding the seawater discharge limits for one day.
On November 13, 2019, the company submitted the first proposal for the Compliance Program to the SMA, which is
under review by the environmental authority, without any comments being made. On April 27 of this year, the SMA
made observations to the PdC presented by Guacolda, granting 8 business days to present a consolidated
Compliance Program incorporating the observations made. The SMA resolution is pending notification to Guacolda.
26
Tax Regulation
AES Gener, its subsidiaries, and affiliates are subject to existing tax legislation in each country where they operate.
Amendments to laws or modifications in tax rates may have a direct impact on earnings.
In Chile, the Chilean tax reform entered into effect on January 1, 2017. The aforementioned reform incorporated a tax
on emissions from fixed sources made up of boilers or turbines which, individually or together, have a total thermal
power greater than or equal to 50 MWt. The first payment of this tax was made in April 2018 for the emissions
corresponding to the year 2017. Much of the Company's energy sale agreements contain clauses that allow contracts
to be adjusted to incorporate the higher cost that implies new taxes, which mitigates the negative effect of the
emissions tax.
A bill for a “tax modernization” was submitted to the Chilean Congress in August 2018. After substantial modifications in
Congress, it was enacted and published in February 24, 2020 under Law 21.210. This law, simplifies tax records that
taxpayers must keep, modernizes the definition of accepted expenditures, to incorporate disbursements during the
ordinary course of business that are part of its operation, but not directly associated to the productive activity.
Additionally, an amendment to the emissions tax regulation was issued, expanding the taxation base to all
establishments whose emitting sources, individually or in aggregate, produce 100 tons or more of particulate matter
per year, or 25,000 tons or more of CO2, not only limiting them to boilers or any particular emission sources as in the
previous regulation. Another relevant modification is the opportunity to implement compensation programs, from 2023
onwards, thereby reducing the calculation of emissions on which the tax payment will apply, however the requirements
of such programs are pending of publication by the authorities. In addition to these modifications, the law incorporated
a surcharge on real estate contributions, for those taxpayers whose aggregated properties exceed an appraisal of 670
UTA, as of December 31 of the previous year, according to the following tranches: i) 670 UTA -1,175 UTA: 0.075%; ii)
1,175-1,510: 0.15%; iii) 1,510 UTA or more: 0.275%. Another change incorporated in the new law is a tax for the
benefit of a regional fund, equivalent to 1% of the cost for investment projects exceeding US$10 million, which require
environmental impact studies. It is applied to the amount that exceeds the US$10 million and will be accrued in the first
year with operating income, payable over a period of 5 years, for the benefit of the region in which the project will be
built. This tax is applicable to projects with environmental assessment processes initiated as of February 24, 2020.
In Colombia, on December 28, 2018, the financing law entered into effect, which included modifications related to
income tax. Some of these are summarized below:
a. Gradual reduction in the corporate income and supplementary tax rate as follows: 2019 tax year 33%; 2020 tax
year 32%; 2021 tax year, 31% rate; and from the 2022 tax year onwards, 30% rate.
b. A general rule that determines that 100% of taxes, rates, and contributions paid in the tax year that have a
causal relationship with the income-generating activity (except income tax) will be deductible.
c. A special rule pointed out that 50% of the GMF will be deductible, regardless of whether or not it has a causal
relationship with the income-generating activity.
d. 50% of the industry and commerce tax, may be deductible from the income tax in the taxable year in that it is
effectively paid, and to the extent that it has a causal link with the income-generating activity. From 2022
onwards 100% can be deductible
e. VAT on importation, training, construction or acquisition of productive real fixed assets including services may
be used as a discount on income tax, only by those responsible for sales tax.
The sub capitalization rule was amended providing that the maximum amount of indebtedness will be equal to the
liquid equity of the previous tax year multiplied by two (previously multiplied by three) and specifying that the debt
should correspond to loans with residents and non-residents.
This rule will not apply to entities supervised by the Financial Superintendence, factoring companies, companies in
unproductive period nor the financing of transport infrastructure projects, nor to the financing of public service
infrastructure projects.
Also, a dividend tax was introduced, which does not apply to the dividends AES Chivor pays AES Gener due to the
convention between Chile and Colombia to avoid double taxation.
27
Meanwhile in Argentina, on December 23, 2019, Law 27,541 "Law of Social Solidarity and Reactivation of Production
in Argentina" was enacted, which introduced some changes to the tax reform enacted in 2017. The new law suspended
the reduction previously approved from the Income Tax rate from 30% to 25% and the approved increase in the
withholding tax on dividends from 7% to 13%, until the fiscal years beginning on January 1, 2021, inclusive. This law
also increased the rate of the Personal Property “Surrogate Responsible Person” Tax from 0.25% to 0.50%, from the
fiscal period 2019 inclusive, and established a new method of prorating the adjustment for comprehensive fiscal
inflation applicable to the 2019 and 2020 fiscal years, The adjustment will assign one sixth to the current year and the
remaining to the following five years.
28
AES GENER CONSOLIDATED BALANCE SHEET

As of March 31, 2020, and December 31, 2019
International Financial Reporting Standards (IFRS).
Amounts expressed in thousands of US dollars unless otherwise indicated,
Assets MUS$ March 31, 2020 December 31, 2019
Current Assets
Cash and Cash Equivalents 378,109 340,861
Other Current Financial Assets 25,756 10,031
Other Current Non-Financial Assets 34,088 2,263
Trade and Other Receivables 442,807 427,768
Related Party Receivables 60,672 29,541
Inventory 128,930 144,777
Taxes Receivables 7,160 15,166
Assets held for sale — 0
Total Current Assets 1,077,522 970,407
Non-Current Assets
Other Non-Current Financial Assets 10,213 5,523
Other Non-Current Non-Financial
Assets 29,740 35,760
Trade and Other Receivables 50,741 44,375
Investments in Associates 88,214 81,714
Intangible Assets 77,927 87,671
Property, Plant and Equipment 7,116,251 7,084,475
Net Deferred Tax assets 150,145 132,635
Total Non-current Assets 7,523,231 7,472,153
Total Assets 8,600,753 8,442,560
29
AES GENER CONSOLIDATED BALANCE SHEET

As of March 31, 2020, and December 31, 2019
International Financial Reporting Standards (IFRS).
Amounts expressed in thousands of US dollars unless otherwise indicated,
Liabilities and Shareholders' Equity MUS$ March 31, 2020 December 31, 2019
Current Liabilities
Other Current Financial Liabilities 376,695 271,400
Trade and Other Payables 324,633 322,648
Related Party Payables 92,178 95,522
Provisions 575 578
Current Tax Payable 60,261 66,934
Employee Benefits 3,908 3,893
Other Current Non-Financial Liabilities 25,151 30,349
Total Current Liabilities 883,401 791,324
Non-Current Liabilities
Other Non-Current Financial Liabilities 4,089,704 3,954,102
Trade and Other Payables — 3,656
Related Party Payables 285,727 287,189
Provisions 177,396 175,843
Non- Current Differed Tax Liabilities 612,381 619,906
Employee Benefits 27,288 31,167
Other Non-Current Non-Financial Liabilities 28,510 31,977
Total Non-Current Liabilities 5,221,006 5,103,840
Total Liabilities 6,104,407 5,895,164
Net Equity
Issued Capital 2,048,449 2,052,076
Retained Earnings (Losses) 440,831 364,801
Share premium 49,864 49,864
Other Components of Equity 239,396 239,300
Other Reserves (372,311) (259,515)
Total Equity Attributable to Shareholders
of Parent 2,406,229 2,446,526
Participaciones no controladoras 90,117 100,870
Total Net Equity 2,496,346 2,547,396
Total Liabilities and Equity 8,600,753 8,442,560
30
AES GENER CONSOLIDATED INCOME STATEMENT

For the periods ended March 31, 2020, and March 31, 2019
International Financial Reporting Standards (IFRS). Amounts expressed in thousands of US dollars unless otherwise
indicated,
Income Statement MUS$ 1Q 1Q

2020 2019
Operating Revenue 542,343 634,218

Cost of Sales (416,633) (468,778)
Gross Profit 125,710 165,440
Other Operating Revenues 876 712
Selling, general and administrative Expenses (32,530) (25,447)
Other Operating Expenses (347) (798)
Other Income (5,902) (12,990)
Financial Income 1,551 2,335
Financial Expense (5,438) (28,762)
Equity Participation in Net Income of Associates 6,592 4,080
Foreign Currency Exchange Differences 11,075 (846)
Net Income before Taxes 101,587 103,724
Income Tax Expense (24,634) (35,038)
Net Income 76,953 68,686
Income Attributable to Shareholders of Parent 76,030 63,281

Income Attributable to Non-Controlling Interests 923 5,405
Net Income (Loss) 76,953 68,686
EBITDA 162,136 207,742
31
AES GENER CONSOLIDATED CASH FLOW STATEMENT

For the periods ended March 31, 2020, and March 31, 2019
indicated,
Consolidated Cash Flow Statement MUS$ March 31, 2020 March 31, 2019
Operating Activities
Receipts from Customers 532,612 664,443
Other Receipts from Operating Activities 1,279 2,148
Payments to Suppliers (399,596) (446,166)
Payments made to Employees (21,331) (23,399)
Other Payments for Operating Activities (32,526) (38,750)
Dividends Received — 5,552
Interests Received 1,009 1,864
Income Tax Paid (16,948) (17,498)
Other Operating Outflows from Operating Activities 3,155 (9,678)
Net Operating Activities Cash Flows 67,654 138,516
Investing Activities
Proceeds from the sale of shares in associates — —
Cash flows used to obtain control of subsidiaries or other businesses (4,808) —
Loss of Control over a Subsidiary or other business (3,626) —
Loans to related entities — (1,429)
Proceeds from Sale of Property, Plant and Equipment (138,151) (103,299)
Purchases of Intangible Assets (3,275) (15,446)
Other Outflows from Investing Activities (355) —
Net Investing Activities Cash Flows (150,215) (120,174)
Financing Activities
Proceeds from Long –Term Borrowings 135,854 634,032
Proceeds from Short –Term Borrowings 90,000 49,000
Payments of Loans (36,902) (471,295)
Payments on Financial Leasing (1,324) (1,294)
Dividends paid (9,184) —
Interest paid (44,072) (20,427)
Other Inflows (Outflows) of Cash and Cash Equivalent (7,557) (3,062)
Net Financing Activities Cash Flows 126,815 186,954
Increase in Net Cash and Cash Equivalent before Effects of Foreign
Currency Exchange Differences 44,254 205,296
Effects of Foreign Exchange Variations on Cash and Cash (7,006) (511)
Equivalents
Increase (Decrease) in Net Cash and Cash Equivalents 37,248 204,785
Cash and Cash Equivalents at the Beginning of Period 340,861 322,373
Cash and Cash Equivalent at the End of Period 378,109 527,158
32
Annex 1: Guacolda Energía S.A.

Summarized income statement and balance sheet for the periods ended March 31, 2020, December 31, 2019 and
March 31, 2019.
indicated.
Income Statement 1Q
2020 2019 Var (%)
Regulated customer sales 11,458 14,397 (20)%
Unregulated customer sales 91,804 96,788 (5)%
Spot sales 3,698 1,227 201 %
Transmission revenue 6,598 6,715 (2)%
Other operating revenues 1,809 1,047 73 %
Operating Revenues 115,367 120,174 (4)%
Transmission tolls (7,656) (10,095) (24)%
Depreciation (13,014) (15,813) (18)%
Total Costs of Sales (81,473) - (103,396) (21)%
8
Gross Profit 33,894 16,778 102 %
Administrative expenses (3,930) (3,436) 14 %
Other Gains and Losses — — ---
Financial Income 170 129 32 %
Financial expenses (6,943) (7,845) (11)%
Foreign currency exchange differences (9,944) 2,484 (500)%
Net Income (Loss) before Taxes 13,247 8,110 63 %
Income Tax Income (Expense) (63) (2,183) (97)%
Net Income (Loss) 13,184 5,927 122 %
EBITDA 42,978 29,155 47 %
33
December 31,
Balance Sheet March 31, 2020 2019 Var (%)
Assets
Current Assets 274,340 216,177 27 %
Non-Current Assets 960,085 970,908 (1)%
Total Assets 1,234,425 1,187,085 4%
Liabilities
Current Liabilities 210,187 176,880 19 %
Non-Current Liabilities 609,342 608,310 —%
Total Liabilities 819,529 785,190 4%
Total Net Equity 414,896 401,895 3%
Total Liabilities and Equity 1,234,425 1,187,085 4%
Guacolda Amortization Schedule (US$ mn)

750
500
500
250
98
— — — —
0
2020 2021 2022 2023 2024 2025
Guacolda Energy Generation, Purchases and Sales

1Q
Energy (GWh) 2020 2019 Var (%)
Sales
Regulated 127 129 (2)%
Unregulated 931 975 (5)%
Spot 56 — 100 %
Total Sales 1,114 1,104 1%
Purchases
Spot — 93 (100)%
Other generators 1 2 (50)%
Total Purchases 1 95 (99)%
Thermal Generation 1,113 1,010 10 %
34
Guacolda generated an additional 103 GWh during the first quarter of 2020, a 10% increase primarily due to higher
dispatch of the plant after the start of operations of the Cardones-Polpaico line in the second quarter of 2019.
Operating revenues fell 4% mainly driven by a US$8 million drop in contract sales revenues partly offset by US$2
million increase in spot revenue.
Contract sales volumes to unregulated customers decreased by 5% to 931GWh in the first quarter of 2020, which led
to a US$5 million decrease in Guacolda’s unregulated contract sales revenues. Meanwhile, contract sales volumes to
regulated customers decreased by 2% to 127GWh in the first quarter of 2020, reducing revenue from regulated
contract sales by US$3 million.
Spot sales increased by US$2 million due to higher sales volumes in the first quarter of 2020. Energy and capacity
purchase expenses decreased US$1 million. Sales and purchase volumes are presented on a net basis for each
period. During the first quarter of 2020 Guacolda had net sales on the spot market of 56GWh while during the same
period 2019 it presented net purchase on the spot market of 93GWh.
Transmission revenues remained relatively stable at US$7 million while other operating revenues decrease US$1
million.
Fuel Cost declined US$11 million as a result of a 30% decrease in average coal prices in the first quarter of 2020
compared to the same period in 2019, partially offset the 10% increase in generation.
Depreciation and amortization expenses were US$3 million lower driven by the impairment of the book value of
Guacolda’s PP&E, registered in December 2019.
Other Cost of Sales decreased by 20% equivalent to US$5 million mainly due to reliquidations on intercompany
purchases in 2019 and lower maintenance costs, while transmission costs were US$2 million lower comparing both
quarters.
Gross Profit for the first quarter of 2020, reached US$34 million, up US$17 million from the first quarter of 2019. The
additional spot energy sales due to the increase in generation, an increase in transmission margins associated with the
regulatory change in the calculation of equivalent transmission charges, lower fuel costs associated with lower coal
prices and lower depreciation more than offset the decrease in contract volume sales. The increase in gross profit
resulted in a 47% growth in EBITDA, reaching US$43 million in the first quarter of 2020.
SG&A costs remained relatively stable at US$4 million in the first quarter of 2020 compared to the same period of
2019. The slight increase in SG&A relates to higher insurance premiums.
Non-Operating results for the first quarter of 2020 totaled US$-17 million, a US$11 million higher loss compared to the
same period in 2019 driven by Foreign currency exchange differences.
Financial Expenses decreased by US$1 million in the first quarter of 2020, explained by lower interest expense, as a
result of the scheduled amortization of the Company’s debt.
Foreign exchange differences experienced a negative variation of US$12 million associated with the impact of the
appreciation of local currency on accounts receivables denominated in CLP. The Chilean peso depreciated by 13.8% in
the first quarter of 2020 while it depreciated by 2.3% in the first quarter of 2019.
Guacolda registered an income tax expense of ThUS$63 in the first quarter of 2020, versus a US$2 million tax
expense in the first quarter of 2019. The primary driver of this variation was the absence of deferred taxes impact on
results in 2020, due to a non-recoverable provision for the value of deferred tax assets recognized on October 1, 2019.
As of March 31, 2019, Guacolda had a cash and cash equivalent totaling US$91 million and total financial debt of US
$598 million, comprised of $500 million in 2025 Senior Notes, US$60 million in a Syndicated Term Loan Facility due in
2020 and approximately US$38 million in a UF denominated committed credit line.
35
Annex 2: Empresa Eléctrica Angamos SpA.

March 31, 2019.
indicated.
Income Statement 1Q
2020 2019 Var (%)
Contract sales 67,144 84,064 (20)%
Spot sales 11,760 7,871 49 %
Transmission revenue 4,489 3,341 34 %
Other operating revenues 3,737 3,280 14 %
Energy and capacity purchases (7,790) (4,575) 70 %
Transmission tolls (5,381) (5,293) 2%
Depreciation (11,555) (11,753) (2)%
Total Costs of Sales (64,601) (74,262) (13)%
Administrative expenses (1,972) (1,857) 6%
Other income(Losses) 20 20 —%
Financial Income 68 247 (72)%
Financial expenses (7,694) (8,692) (11)%
Foreign currency exchange differences 311 (341) (191)%
Net Income (Loss) before Taxes 13,262 13,671 (3)%
Income Tax Income (Expense) (3,581) (3,722) (4)%
Net Income (Loss) 9,681 9,949 (3)%
497 448
EBITDA 32,609 34,638 (6)%
December 31,
Balance Sheet March 31, 2020 2019 Var (%)
Assets...................................
Current Assets....................... 138,887 100,833 38 %
Non-Current Assets............... 758,947 769,026 (1)%
Total Assets......................... 897,834 869,859 3%
Liabilities..............................
Current Liabilities................... 132,457 117,691 13 %
Non-Current Liabilities........... 682,247 677,933 1%
Total Liabilities.................... 814,704 795,624 2%
Total Net Equity................... 83,130 74,235 12 %
Total Liabilities and Equity. 897,834 869,859 3%
36
Angamos Amortization Schedule (US$ mn)

200
150 144.1
100
58.3 58.3 58.3 58.3 58.3 58.3 58.3

50
0
2020 2021 2022 2023 2024 2025 2026 2027+
Angamos Energy Generation, Purchases and Sales
1Q
Sales
Total Sales 976 888 10 %
Purchases
Spot — — —%
Total Purchases — — —%
Thermal Generation 976 888 10 %
Angamos generated 88GWh more in the first quarter of 2020, up 10% from the first quarter of 2019, due to higher
dispatch given lower availability of other plants in the system.
Contract sales revenues decreased US$17 million to US$67 million in the quarter due to lower contract prices, as a
result of contract indexation mechanisms linked to fuel costs, as well as lower contract sales volumes, which fell 2% to
786 GWh in the first quarter of 2020. Spot sales revenues increased by US$4 million as Rerouted energy sales volume
grew 100GWh to 190GWh.
Rerouted energy or Spot Re-Routing refers to the difference between the customer’s contracted energy and their
actual energy withdrawal. When Angamos has the available generation capacity to cover this differential, the energy is
sold on the spot market, and the margin is passed through to the customer. Rerouted energy is included as a discount
on the monthly invoice to the customers (in contract sales) and is included as income from spot sales.
37
Transmission revenue grew by US$1 million mainly associated with the indexation to the new transmission tolls
structure, due to the incorporation of new infrastructure on the grid.
Fuel Consumption costs fell 35%, equivalent to US$13 million in the first quarter of 2020 compared to the same quarter
of 2019. Lower coal prices were the main driver for this decrease, despite the 10% increase in generation.
Energy and capacity purchases increased US$3 million due an energy provision adjustment registered in the first
quarter of 2020.
On a quarterly basis, Angamos’s Gross Profit decreased 7% to US$23 million, mainly driven by the increase in energy
and capacity purchases.
SG&A costs remained relatively stable at US$2 million comparing the first quarter of 2020 and 2019. The slight
increase in SG&A is associated with higher insurance premiums.
Angamos reported an EBITDA of US$33 million in the first quarter of 2020, 6% less than the same period of 2019 due
primarily to the decrease in Gross Profit explained above.
Non-Operating results for the first quarter of 2020 totaled US$-7 million which positively compares to the US$-9 million
loss registered in the same period in 2019. This variance is primarily related to the decrease of US$1 million in financial
expenses associated with lower interest expense as a result of the scheduled amortizations of Angamos' debt and the
prepayment of US$24 million of bank loans in June 2019.
Angamos registered an income tax expense of US$4 million in the first quarter of 2020, a 4% decrease compared to
the same period of 2019, in line with the slight decrease in pretax income.
As of March 31, 2020, Angamos had a total debt of US$552 million while the ending balance of cash and cash
equivalent was US$32 million.
38
Annex 3: Empresa Eléctrica Cochrane SpA.

March 31, 2019.
indicated.
Income Statement 1Q
2020 2019 2020/2019
Contract sales 59,788 71,003 (16)%
Spot sales 21,860 16,396 33 %
Transmission revenue 4,616 3,249 42 %
Other operating revenues 153 206 (26)%
Fuel consumption (3,305) (1,125) 194 %
Transmission tolls (4,977) (4,362) 14 %
Other cost of sales (14,867) (13,672) 9%
Depreciation (11,746) (11,546) 2%
Total Costs of Sales (60,819) (60,694) —%
Administrative expenses (1,841) (1,493) 23 %
Other income(Losses) (875) — 100 %
Financial Income 13 121 (89)%
Financial expenses (16,474) (10,122) 63 %
Foreign currency exchange differences (1,043) 112 (1,031)%
Net Income (Loss) before Taxes 5,378 18,778 (71)%
Income Tax Income (Expense) (1,452) (5,070) (71)%
Net Income (Loss) 3,926 13,708 (71)%
-485 -416
EBITDA 35,988 40,629 (11)%
39
December 31,
Balance Sheet March 31, 2020 2019 Variación
Assets.............................................
Current Assets.................................. 155,018 140,656 10 %
Non-Current Assets.......................... 1,008,931 1,019,912 (1)%
Total Assets.................................... 1,163,949 1,160,568 —%
Liabilities.........................................
Current Liabilities............................. 115,644 96,875 19 %
Non-Current Liabilities...................... 866,345 863,520 —%
Total Liabilities............................... 981,989 960,395 2%
Total Net Equity.............................. 181,960 200,173 (9)%
Total Liabilities and Equity............ 1,163,949 1,160,568 —%
Cochrane Amortization Schedule (US$ mn)

600
478.0
400
200
47.0 55.0 60.0 60.0 66.0 67.0

42.0
0
2020 2021 2022 2023 2024 2025 2026 2027+
Cochrane Energy Generation, Purchases and Sales
1Q
Sales
Total Sales 773 632 22 %
Thermal Generation 773 632 22 %
40
Cochrane increased its generation by 141GWh in the first quarter of 2020 compared to the same period in 2019. The
increase in generation was primarily due to higher dispatch given lower availability of other plants in the system.
Total contract sales fell US$11 million comparing the first quarter of 2020 and the same period in 2019. The main
reason for this decrease is lower contract prices, as a result of contract indexation mechanisms to fuel costs, and to a
lesser extent, a 9GWh decrease in contract volume sales. Spot sales revenues increased by US$5 million as Rerouted
energy sales volume grew 150GWh, despite lower spot prices.
Rerouted energy or Spot Re-Routing refers to the difference between the customer’s contracted energy and their
actual energy withdrawal. When Cochrane has the available generation capacity to cover this differential, the energy is
sold on the spot market, and the margin is passed through to the customer. Rerouted energy is included as a discount
on the monthly invoice to the customers (in contract sales) and is included as income from spot sales.
Transmission revenues increased US$1 million comparing the first quarter of 2020 and 2019 associated with the
indexation to the new transmission toll structure, due to the incorporation of new infrastructure in the system, which
was partially offset by higher transmission costs.
Costs of sales remained fairly sable at US$61 million between the first quarters of 2020 and 2019. The main drivers in
Costs of sales were a US$2 million increase in energy and capacity purchases due to adjustments in energy and
capacity payment provisions in the first quarter of 2020, in addition to higher other costs of sales of US$1 million
related to higher services provided by AES Gener. Fuel Consumption costs fell 14% or US$4 million in the first quarter
of 2020 compared to the same quarter last year. Lower coal prices were the main driver for this decrease, despite a
22% increase in generation.
On a quarterly basis, Cochrane’s Gross Profit reached US$26 million, a US$5 million drop from the first quarter of
2019, while EBITDA registered in the first quarter of 2020 was US$36 million, 11% lower than the same period last
year. The main drivers for the decrease in EBITDA and gross profit relates to the negative impact of energy and
capacity provision adjustments in the first quarter of 2020 and higher intercompany service expenses. These negative
drivers were partially offset by the positive effect of the agreements reached with customers to pass-through the
emissions tax costs.
SG&A costs grew 23% to US$2 million comparing the first quarter of 2020 and 2019, due to higher insurance
premiums.
Non-Operating results for the first quarter of 2020 totaled US$-18 million which negatively compares to the US$-10
million registered in the same period in 2019. This variance is primarily due to higher financial expenses associated to
an increase in Cochrane's debt interest rate after the refinancing process completed in November 2019 and a negative
variation in foreign exchange differences associated with the impact of the depreciation of local currency on accounts
receivables denominated in CLP. The Chilean peso depreciated by 13.8% in the first quarter of 2020 while it
depreciated by 2.3% in the first quarter of 2019.
Cochrane registered an income tax expense of US$1 million in the first quarter of 2020, compared to the income tax
expense of US$5 million in the same period of 2019, in line with the lower pre-tax income.
Total debt for Cochrane as of March 31, 2020 was US$875 million and the ending balance of cash and cash equivalent
was US$77 million.
41
ABOUT AES GENER
AES Gener generates and sells electricity in Chile, Colombia, and Argentina with the mission of improving lives by
accelerating a more secure and sustainable energy future. The Company operates a total installed capacity of
5,261MW in the region along with an extensive portfolio of renewable energy projects under development. The
Company is the second-largest generator in Chile, with a diversified portfolio including hydro, wind, solar, energy
storage, biomass, gas and coal-fired power plants.
In Chile, AES Gener owns 3,577MW, comprised of 3,074 MW of thermoelectric, 271 MW of hydroelectric, 110 MW of
wind, 58 MW of solar photovoltaic and 13MW of biomass capacity, in addition to 52MW of battery energy storage
systems, seawater desalination plants, transmission lines and gas pipelines in Chile. AES Gener also owns
hydroelectric and solar plants in Colombia with a total capacity of 1,041 MW and a natural gas combined cycle plant in
Argentina with an installed capacity of 643 MW. AES Gener is 66.7% owned by The AES Corporation.
To learn more about AES Gener, please visit www.aesgener.cl/investors
ABOUT THE AES CORPORATION
The AES Corporation (NYSE: AES) is a Fortune 200 global power company. AES provides affordable, sustainable
energy to 14 countries through its diverse portfolio of distribution businesses as well as thermal and renewable
generation facilities. AES' is committed to operational excellence and meeting the world’s changing power needs.
AES’s 2019 revenues were $10 billion and owned and managed $34 billion in total assets.
To learn more, please visit www.aes.com
42

AES Gener 1Q 2020 Earnings Report PDF

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Earnings Report - 1Q 2020

AES GENER FIRST QUARTER OF 2020 RESULTS

CONSOLIDATED FINANCIAL SUMMARY

Financial Summary (ThUS$) 1Q

HIGHLIGHTS AND RECENT EVENTS

REVIEW OF OPERATIONS BY MARKET

Total Gross Profit 115,054 109,961 5%

Energy Purchases (GWh)

Energy Purchases (GWh)

Net Generation (GWh)

Energy Purchases (GWh)

Net Generation (GWh)

REVIEW OF FINANCIAL RESULTS

Other operating revenues 876 712 23 %

Income tax (24,634) (35,038) (30)%

Total Gross Profit 125,710 165,440 (24)%

Selling, General and Administrative Expenses

EBITDA 162,136 207,742 (22)%

December 31, December 31,

Cochrane US$ 445 M Syndicated Loan

Alto Maipo Floating Portion 344.42 5.35% — — — 7.69 3.90 332.83

Amortization Schedule (US$ mn)

Foreign Currency Risk

March 31, 2020 December 31, 2019

Interest Rate Risk

March 31, 2020 December 31, 2019

Commodity Price Risk

Operational Failures and Maintenance

Projects under construction

Market Regulatory Framework

Summary Ventanas Complex

Summary Guacolda Complex

AES GENER CONSOLIDATED BALANCE SHEET

Assets MUS$ March 31, 2020 December 31, 2019

AES GENER CONSOLIDATED BALANCE SHEET

AES GENER CONSOLIDATED INCOME STATEMENT

Income Statement MUS$ 1Q 1Q

Operating Revenue 542,343 634,218

Income Attributable to Shareholders of Parent 76,030 63,281

Net Income (Loss) 76,953 68,686

EBITDA 162,136 207,742

AES GENER CONSOLIDATED CASH FLOW STATEMENT

Annex 1: Guacolda Energía S.A.

EBITDA 42,978 29,155 47 %

Guacolda Amortization Schedule (US$ mn)

Guacolda Energy Generation, Purchases and Sales

Thermal Generation 1,113 1,010 10 %

Annex 2: Empresa Eléctrica Angamos SpA.

Angamos Amortization Schedule (US$ mn)

58.3 58.3 58.3 58.3 58.3 58.3 58.3

Angamos Energy Generation, Purchases and Sales

Thermal Generation 976 888 10 %

Annex 3: Empresa Eléctrica Cochrane SpA.

Cochrane Amortization Schedule (US$ mn)

47.0 55.0 60.0 60.0 66.0 67.0

Cochrane Energy Generation, Purchases and Sales

Thermal Generation 773 632 22 %

ABOUT AES GENER

To learn more about AES Gener, please visit www.aesgener.cl/investors

ABOUT THE AES CORPORATION

To learn more, please visit www.aes.com