Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

AES Reports 22% Increase in Adjusted Earnings Per Share to $1.24 for Full Year 2012; Announces 2013 Adjusted Earnings Per Share



  AES Reports 22% Increase in Adjusted Earnings Per Share to $1.24 for Full
  Year 2012; Announces 2013 Adjusted Earnings Per Share Guidance of $1.24 to
  $1.32

Announces Increased Share Buyback Authorization by $300 Million

2012 Highlights

  * Achieved 2012 Adjusted EPS and Proportional Free Cash Flow guidance
  * Invested $531 million in repayment of recourse debt and $301 million in
    share repurchases
  * Reduced general and administrative expenses by $90 million and exceeded
    cost savings target by 38%
  * Closed eight asset sales with approximately $650 million of proceeds
  * Completed construction of 447 MW of installed capacity

Business Wire

ARLINGTON, Va. -- February 27, 2013

The AES Corporation (NYSE: AES) today reported Adjusted Earnings Per Share
(Adjusted EPS, a non-GAAP financial measure) of $1.24 for full year 2012. The
contributions from new businesses, which collectively represent more than
1,900 MW of capacity additions, and improved performance at generation plants
in the U.S. and Asia drove strong operating performance for the year.
Reductions of general and administrative expenses also contributed to earnings
growth. These positive drivers were partially offset by higher taxes and
declines in Chile, due to lower spot margins and second quarter plant outages,
and Brazil, as a result of the tariff reset at Eletropaulo. The Company also
reported Diluted Earnings Per Share from Continuing Operations of ($1.21),
which declined principally due to a goodwill impairment expense of $1,817
million, or $2.41 per share, at DPL in the third quarter of 2012.

“In the fourth quarter of 2011, we undertook a new strategy to drive operating
performance and profitability, improve cash flow and returns on our
investments, and streamline our portfolio. Since then, we have reduced general
and administrative costs by $90 million, invested more than $1.1 billion in
our balance sheet, and closed asset sales representing nearly $1 billion of
equity proceeds to AES. As a result of all of these initiatives, we have
delivered on our financial commitments,” said Andrés Gluski, AES President and
Chief Executive Officer. “We remain strongly dedicated to continuing to
implement our strategy to meet our commitments to shareholders.”

“We continue to expect 4% to 6% average annual EPS capital growth, which
combined with our current dividend yield, is in line with our 6% to 8%
three-year total return expectations through 2015,” said Tom O’Flynn, AES
Executive Vice President and Chief Financial Officer. “We are committed to
maximizing our total return through strong operations, effective capital
management and deployment of discretionary cash into debt reduction, share
repurchases and attractive growth investments.”

                                                          
Table 1: Key Financial Results
                                 Full Year                 Fourth Quarter
                                 2012          2011        2012       2011
Adjusted EPS^1                   $ 1.24        $ 1.02      $ 0.32     $ 0.23  
Diluted EPS from Continuing      $ (1.21 )     $ 0.63      $ 0.31     $ 0.18  
Operations
Proportional Free Cash Flow^1    $ 1,242   M   $ 932   M   $ 293  M   $ 168  M
Consolidated Net Cash Provided   $ 2,901   M   $ 2,884 M   $ 772  M   $ 571  M
by Operating Activities

^1 A non-GAAP financial measure. See “Non-GAAP Financial Measures” for
definitions and reconciliations to the most comparable GAAP financial
measures.

Full year 2012 Adjusted EPS of $1.24 was in the Company’s guidance range of
$1.22 to $1.30. This performance was driven by the contributions of new
businesses, lower general and administrative expenses and a lower share count,
partially offset by higher taxes and lower spot margins and second quarter
outages in Chile and the Eletropaulo tariff reset in Brazil. Full year 2012
Diluted Earnings Per Share from Continuing Operations decreased $1.84,
principally due to the DPL goodwill impairment expense of $2.41 per share.

Proportional Free Cash Flow of $1,242 million was in the Company’s guidance
range of $1,050 to $1,250 million. This performance was driven by the first
full year of operations at DPL, improved operating performance and lower
capital expenditures at IPL in the U.S., and increased operating cash flow at
Masinloc in Asia.

Consolidated Net Cash Provided by Operating Activities increased $17 million,
or 1%, as increases from new businesses and improved operations were offset by
the negative impact of the tariff reset, higher fixed costs and higher working
capital requirements at Eletropaulo in Brazil.

Additional Highlights

  * In 2012, the Company invested $832 million in debt repayment and share
    repurchases; cumulatively since September 2011, the company has invested
    $1.1 billion in its balance sheet:

       * More than $700 million of recourse and non-recourse debt prepayment
       * $390 million invested in 34 million shares at an average price of
         $11.55

  * In 2012, the Company closed eight asset sales, representing approximately
    $650 million in equity proceeds to AES; cumulatively, since September
    2011, the Company closed twelve asset sales with nearly $1 billion in
    equity proceeds to AES
  * The Company reduced general and administrative expenses by $90 million in
    2012, exceeding its $65 million cost savings target by 38%; on track to
    achieve $145 million in savings by 2014
  * Completed construction of 447 MW of installed capacity during 2012,
    including the 326 MW gas-fired Trinidad Unit 2 and 121 MW of wind and
    hydroelectric projects
  * On schedule to complete an additional 2,181 MW of capacity under
    construction expected to come on-line through 2015
  * The Company’s Board of Directors recently increased the share buyback
    authorization by $300 million, all of which is currently available

2013 Guidance

The Company issued 2013 guidance of Adjusted EPS of $1.24 to $1.32, which is
based on foreign exchange and commodity price forward curves as of December
31, 2012. The Company’s guidance includes all announced asset sales, as well
as some modest dilution from potential future asset sale transactions.

Proportional Free Cash Flow is expected to be $750 to $1,050 million,
reflecting a decline due to increased environmental capital expenditures at
AES Gener and IPL, which will help drive future earnings growth, and lower
operating performance at DPL, primarily driven by lower PJM capacity prices
and an expected transition to the market. Consolidated Net Cash Provided by
Operating Activities is also expected to decline, due to higher working
capital requirements in Brazil.

                                             
Table 2: 2013 Guidance and Reconciliation
                                              Full Year 2013
                                              Guidance
Adjusted EPS^1                                $ 1.24-1.32    
Proportional Free Cash Flow^1 (a)             $ 750-1,050   M
Reconciling Factor^2 (b)                      $ 1,750-2,050 M
Cash Flow from Operating Activities (a + b)   $ 2,500-3,100 M

^1 A non-GAAP financial measure. See “Non-GAAP Financial Measures” for
definitions and reconciliations to the most comparable GAAP financial
measures.

^2 Primarily includes minority interest, maintenance capex and environmental
capex. See Appendix for details of the reconciliation.

2012 Operating Drivers

In 2012, the Company implemented a reorganization into six market-oriented
Strategic Business Units (“SBUs”): US (United States), Andes (Chile, Colombia,
and Argentina), Brazil, MCAC (Mexico, Central America and the Caribbean), EMEA
(Europe, Middle East and Africa), and Asia.

Adjusted Pre-Tax Contribution (Adjusted PTC, a non-GAAP financial measure), is
defined by the Company as pre-tax income from continuing operations
attributable to AES excluding unrealized gains or losses related to derivative
transactions, unrealized foreign currency gains or losses, significant gains
or losses due to dispositions and acquisitions of business interests,
significant losses due to impairments and costs due to the early retirement of
debt. Adjusted PTC also includes net equity in earnings of affiliates on an
after-tax basis. The Company has concluded that Adjusted PTC best reflects the
underlying business performance of the Company and is the most relevant
measure considered in the Company’s internal evaluation of the financial
performance of its segments.

                                              
Table 3: Adjusted PTC^1 by SBU
                              Full Year 2012   Full Year 2011
US                            $   410     M    $   181     M
Andes                         $   369     M    $   508     M
Brazil                        $   321     M    $   415     M
MCAC                          $   388     M    $   306     M
EMEA                          $   422     M    $   290     M
Asia                          $   201     M    $   99      M
Total SBUs                    $   2,111   M    $   1,799   M
Corp/Other                    $   (734)   M    $   (721)   M
Total AES Adjusted PTC^1,2    $   1,377   M    $   1,078   M
Adjusted Effective Tax Rate       32%              26%      
Share Count                       760              783      
Adjusted EPS^1                $   1.24         $   1.02     

^1 A non-GAAP financial measure. See “Non-GAAP Financial Measures” for
definitions and reconciliations to the most comparable GAAP financial
measures.

^2 Includes $34 million and ($2) million of after-tax net equity in earnings
of affiliates in 2012 and 2011, respectively.

Full year 2012 Adjusted PTC increased $299 million. Key operating drivers of
Adjusted PTC for each SBU in 2012 included:

  * US – An increase of $229 million, driven by the first full year of
    contributions from DPL, improved performance at Hawaii and Southland, due
    to the temporary restart of Huntington Beach Units 3 and 4.
  * Andes – A decrease of $139 million due to lower spot margins and second
    quarter outages in Chile, as well as higher maintenance costs in
    Argentina.
  * Brazil – A decrease of $94 million, primarily due to the impact of the
    tariff reset at Eletropaulo and the depreciation of the Real.
  * MCAC – An increase of $82 million driven by the first full year of
    operations of Changuinola in Panama.
  * EMEA – An increase of $132 million primarily due to the first full year of
    contributions of Maritza in Bulgaria, as well as a non-recurring
    arbitration settlement at Cartagena in Spain.
  * Asia – An increase of $102 million driven by higher market demand at
    Masinloc in the Philippines.

Non-GAAP Financial Measures

See Non-GAAP Financial Measures for definitions of Adjusted Earnings Per
Share, Adjusted Pre-Tax Contribution, Proportional Cash Flow From Operating
Activities, Proportional Free Cash Flow, as well as reconciliations to the
most comparable GAAP financial measure.

In providing its full year 2013 Adjusted EPS guidance, the Company notes that
there could be differences between expected reported earnings and estimated
operating earnings for matters such as, but not limited to: (a) unrealized
gains or losses related to derivative transactions; (b) unrealized foreign
currency gains or losses; (c) gains or losses due to dispositions and
acquisitions of business interests; (d) losses due to impairments, estimated
to be approximately $20 million in 2013 related to the sale of the Ukraine
utilities; and (e) costs due to the early retirement of debt. At this time,
management is not able to estimate the aggregate impact, if any, of these
items on reported earnings. Accordingly, the Company is not able to provide a
corresponding GAAP equivalent for its Adjusted EPS guidance.

Attachments

Consolidated Statements of Operations, Consolidated Balance Sheets, Segment
Information, Consolidated Statements of Cash Flows, Non-GAAP Financial
Measures, Parent Financial Information and 2012 and 2013 Financial Guidance
Elements.

Conference Call Information

AES will host a conference call on Wednesday, February 27, 2013 at 10:00 a.m.
Eastern Standard Time (EST). Interested parties may listen to the
teleconference by dialing 1-800-857-6557 at least ten minutes before the start
of the call. International callers should dial +1-415-228-4653. The
participant passcode for this call is 22713. Internet access to the
presentation materials will be available on the AES website at www.aes.com by
selecting “Investors” and then “Quarterly Financial Results.”

A telephonic replay of the call will be available from approximately 12:00
p.m. EST on Wednesday, February 27, 2013 through Wednesday, March 20, 2013.
Callers in the U.S. please dial 1-800-839-7074. International callers should
dial +1-203-369-3359. The system will ask for a passcode; please enter 22713.
A webcast replay, as well as a replay in downloadable MP3 format, will be
accessible at www.aes.com beginning shortly after the completion of the call.

About AES

The AES Corporation (NYSE: AES) is a Fortune 200 global power company. We
provide affordable, sustainable energy to 25 countries through our diverse
portfolio of distribution businesses as well as thermal and renewable
generation facilities. Our workforce of 25,000 people is committed to
operational excellence and meeting the world's changing power needs. Our 2012
revenues were $18 billion and we own and manage $42 billion in total assets.
To learn more, please visit www.aes.com.

Safe Harbor Disclosure

This news release contains forward-looking statements within the meaning of
the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such
forward-looking statements include, but are not limited to, those related to
future earnings, growth and financial and operating performance.
Forward-looking statements are not intended to be a guarantee of future
results, but instead constitute AES’ current expectations based on reasonable
assumptions. Forecasted financial information is based on certain material
assumptions. These assumptions include, but are not limited to, our accurate
projections of future interest rates, commodity price and foreign currency
pricing, continued normal levels of operating performance and electricity
volume at our distribution companies and operational performance at our
generation businesses consistent with historical levels, as well as
achievements of planned productivity improvements and incremental growth
investments at normalized investment levels and rates of return consistent
with prior experience.

Actual results could differ materially from those projected in our
forward-looking statements due to risks, uncertainties and other factors.
Important factors that could affect actual results are discussed in AES’
filings with the Securities and Exchange Commission (the “SEC”), including,
but not limited to, the risks discussed under Item 1A “Risk Factors” and Item
7: Management’s Discussion & Analysis in AES’ 2012 Annual Report on Form 10-K
and in subsequent reports filed with the SEC. Readers are encouraged to read
AES’ filings to learn more about the risk factors associated with AES’
business. AES undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.

Any Stockholder who desires a copy of the Company’s 2012 Annual Report on Form
10-K dated on or about February 26, 2013 with the SEC may obtain a copy
(excluding Exhibits) without charge by addressing a request to the Office of
the Corporate Secretary, The AES Corporation, 4300 Wilson Boulevard,
Arlington, Virginia 22203. Exhibits also may be requested, but a charge equal
to the reproduction cost thereof will be made. A copy of the Form 10-K may be
obtained by visiting the Company’s website at www.aes.com.

 
THE AES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 31, 2012, 2011, AND 2010
                                                                  
                                       2012          2011          2010
                                       (in millions, except per share amounts)
Revenue:
Regulated                              $ 9,925       $ 9,504       $ 8,910
Non-Regulated                            8,216         7,419         6,533    
Total revenue                            18,141        16,923        15,443   
Cost of Sales:
Regulated                                (8,433  )     (7,134  )     (6,497  )
Non-Regulated                            (5,994  )     (5,726  )     (5,126  )
Total cost of sales                      (14,427 )     (12,860 )     (11,623 )
Gross margin                             3,714         4,063         3,820    
General and administrative expenses      (301    )     (391    )     (391    )
Interest expense                         (1,572  )     (1,553  )     (1,449  )
Interest income                          349           399           407
Other expense                            (93     )     (153    )     (232    )
Other income                             105           149           100
Gain on sale of investments              219           8             -
Goodwill impairment                      (1,817  )     (17     )     (21     )
Asset impairment expense                 (73     )     (173    )     (304    )
Foreign currency transaction losses      (167    )     (39     )     (33     )
Other non-operating expense              (50     )     (82     )     (7      )
INCOME FROM CONTINUING OPERATIONS
BEFORE
TAXES AND EQUITY IN EARNINGS OF          314           2,211         1,890
AFFILIATES
Income tax expense                       (708    )     (634    )     (593    )
Net equity in earnings (losses) of       34            (2      )     184      
affiliates
INCOME (LOSS) FROM CONTINUING            (360    )     1,575         1,481
OPERATIONS
Loss from operations of discontinued
businesses, net of income tax
expense (benefit) of $3, $(26) and       (13     )     (131    )     (486    )
$(284), respectively
Net gain from disposal and
impairments of discontinued
businesses, net of income
tax expense of $68, $300 and $132,       16            86            64       
respectively
NET INCOME (LOSS)                        (357    )     1,530         1,059
Noncontrolling interests:
Less: Income from continuing
operations attributable to               (555    )     (1,083  )     (985    )
noncontrolling interests
Less: Income from discontinued
operations attributable to               -             (389    )     (65     )
noncontrolling interests
Total net income attributable to         (555    )     (1,472  )     (1,050  )
noncontrolling interests
NET INCOME (LOSS) ATTRIBUTABLE TO      $ (912    )   $ 58          $ 9        
THE AES CORPORATION
AMOUNTS ATTRIBUTABLE TO THE AES
CORPORATION
COMMON STOCKHOLDERS:
Income (loss) from continuing          $ (915    )   $ 492         $ 496
operations, net of tax
Income (loss) from discontinued          3             (434    )     (487    )
operations, net of tax
Net income (loss)                      $ (912    )   $ 58          $ 9        
BASIC EARNINGS PER SHARE:
Income (loss) from continuing
operations attributable to The AES
Corporation common stockholders, net   $ (1.21   )   $ 0.63        $ 0.64
of tax
Loss from discontinued operations
attributable to The AES Corporation      -             (0.56   )     (0.63   )
common stockholders, net of tax
NET INCOME (LOSS) ATTRIBUTABLE TO                                     
THE AES CORPORATION
COMMON STOCKHOLDERS                    $ (1.21   )   $ 0.07        $ 0.01     
DILUTED EARNINGS PER SHARE:
Income (loss) from continuing
operations attributable to The AES
Corporation common stockholders, net   $ (1.21   )   $ 0.63        $ 0.64
of tax
Loss from discontinued operations
attributable to The AES Corporation      -             (0.56   )     (0.63   )
common stockholders, net of tax
NET INCOME (LOSS) ATTRIBUTABLE TO                                     
THE AES CORPORATION
COMMON STOCKHOLDERS                    $ (1.21   )   $ 0.07        $ 0.01     
                                                                      
DIVIDENDS DECLARED PER COMMON SHARE    $ 0.08        $ -           $ -        
                                                                      

 
THE AES CORPORATION
STRATEGIC BUSINESS UNIT INFORMATION (unaudited)
                                                                   
                               Three Months Ended      Year Ended
                               December 31,            December 31,
($ in millions)                2012        2011        2012         2011
                                                                       
REVENUE
  US                           $ 917       $ 625       $ 3,759      $ 2,110
  Andes                          741         619         3,020        2,989
  Brazil                         1,522       1,503       5,788        6,640
  MCAC ^(1)                      679         617         2,573        2,328
  EMEA ^(2)                      605         652         2,292        2,271
  Asia                           181         177         738          626
  Corporate, Other and           (5    )     (10   )     (29    )     (41    )
  Inter-SBU eliminations
  Total Revenue                $ 4,640     $ 4,183     $ 18,141     $ 16,923  

       MCAC includes MCAC Utilities which are reported within Corporate and
^(1)   Other in the segment disclosures provided in the notes to the Company's
       financial statements.
        
       EMEA includes Europe Utilities and Africa Utilities which are reported
^(2)   within Corporate and Other in the segment disclosures provided in the
       notes to the Company's financial statements.

 
THE AES CORPORATION
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2012 AND 2011
                                                      
                                      2012                     2011
                                                               Revised^(1)
                                                                
                                      (in millions, except share and per share
                                      data)
ASSETS
CURRENT ASSETS
Cash and cash equivalents           $ 1,970               $    1,695
Restricted cash                       751                      477
Short-term investments                696                      1,356
Accounts receivable, net of
allowance for doubtful accounts       2,712                    2,522
of $309 and $273, respectively
Inventory                             769                      775
Deferred income taxes                 222                      454
Prepaid expenses                      231                      157
Other current assets                  1,114                    1,560
Current assets of discontinued
operations and held for sale          -                        233         
assets
Total current assets                  8,465                    9,229       
NONCURRENT ASSETS
Property, Plant and Equipment:
Land                                  1,008                    1,089
Electric generation, distribution     31,837                   31,068
assets and other
Accumulated depreciation              (9,723    )              (8,944     )
Construction in progress              2,791                    1,788       
Property, plant and equipment,        25,913                   25,001      
net
Other Assets:
Investments in and advances to        1,196                    1,422
affiliates
Debt service reserves and other       565                      876
deposits
Goodwill                              1,999                    3,820
Other intangible assets, net of
accumulated amortization of $276      429                      545
and $164, respectively
Deferred income taxes                 996                      715
Other noncurrent assets               2,242                    2,346
Noncurrent assets of discontinued
operations and held for sale          25                       1,392       
assets
Total other assets                    7,452                    11,116      
TOTAL ASSETS                        $ 41,830              $    45,346      
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable                    $ 2,638               $    2,008
Accrued interest                      295                      327
Accrued and other liabilities         2,532                    3,389
Non-recourse debt including $287
and $259, respectively, related       2,843                    2,123
to variable interest entities
Recourse debt                         11                       305
Current liabilities of
discontinued operations and held      -                        286         
for sale businesses
Total current liabilities             8,319                    8,438       
NONCURRENT LIABILITIES
Non-recourse debt including
$1,187 and $1,156, respectively,      12,568                   13,412
related to variable interest
entities
Recourse debt                         5,951                    6,180
Deferred income taxes                 1,238                    1,321
Pension and other post-retirement     2,456                    1,729
liabilities
Other noncurrent liabilities          3,706                    3,111
Noncurrent liabilities of
discontinued operations and held      -                        1,348       
for sale businesses
Total noncurrent liabilities          25,919                   27,101      
Commitments and Contingencies
(see Notes 13 and 14)
Cumulative preferred stock of         78                       78
subsidiaries
EQUITY
THE AES CORPORATION STOCKHOLDERS'
EQUITY
Common stock ($0.01 par value,
1,200,000,000 shares authorized;                                
810,679,839 issued
and 744,263,855 outstanding at
December 31, 2012 and 807,573,277
issued and 765,186,316
outstanding at December 31, 2011)     8                        8
Additional paid-in capital            8,525                    8,507
Retained earnings (accumulated        (264      )              678
deficit)
Accumulated other comprehensive       (2,920    )              (2,758     )
loss
Treasury stock, at cost
(66,415,984 and 42,386,961 shares     (780      )              (489       )
at December 31, 2012 and 2011,
respectively)
Total The AES Corporation             4,569                    5,946
stockholders' equity
NONCONTROLLING INTERESTS              2,945                    3,783       
Total equity                          7,514                    9,729       
TOTAL LIABILITIES AND EQUITY        $ 41,830              $    45,346      

       December 31, 2011 balances revised to reflect updated DPL purchase
^(1)   accounting allocation. For further information see our Form 10-K for
       the year ended December 31, 2012 filed with the SEC.

 
THE AES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
                                                                   
                             Three Months Ended        Year Ended
                             December 31,              December 31,
                             2012         2011         2012         2011
                                                                       
                             (in millions)
OPERATING ACTIVITIES:
Net income (loss)            $ 323        $ 445        $ (357   )   $ 1,530
Adjustments to net income
(loss):
Depreciation and               356          315          1,394        1,262
amortization
Gain from sale of
investments and impairment     (36    )     65           1,766        386
expense
Deferred income taxes          61           (132   )     162          (199   )
Provisions for                 (4     )     (6     )     47           30
contingencies
Loss on the extinguishment     7            10           7            62
of debt
(Gain) loss on disposal
and impairment write-down      46           (389   )     (84    )     (388   )
- discontinued operations
Other                          24           84           34           149
Changes in operating
assets and liabilities,
net of effects of
acquisitions:
(Increase) decrease in         (50    )     (51    )     (241   )     (236   )
accounts receivable
(Increase) decrease in         34           (23    )     24           (141   )
inventory
(Increase) decrease in
prepaid expenses and other     30           (74    )     120          (7     )
current assets
(Increase) decrease in         (210   )     (236   )     (589   )     (403   )
other assets
Increase (decrease) in
accounts payable and           27           122          330          322
current liabilities
Increase (decrease) in         104          317          (47    )     166
income tax payables, net
Increase (decrease) in         60           124          335          351     
other liabilities
Net cash provided by           772          571          2,901        2,884   
operating activities
INVESTING ACTIVITIES:
Capital expenditures           (655   )     (598   )     (2,236 )     (2,430 )
Acquisitions—net of cash       (2     )     (3,404 )     (20    )     (3,562 )
acquired
Proceeds from the sale of
businesses, net of cash        207          880          639          927
sold
Proceeds from the sale of      42           28           46           117
assets
Sale of short-term             1,321        1,884        6,437        6,075
investments
Purchase of short-term         (1,143 )     (2,228 )     (5,907 )     (5,860 )
investments
(Increase) decrease in         (54    )     225          (43    )     61
restricted cash
(Increase) decrease in
debt service reserves and      4            95           28           (284   )
other assets
Affiliate advances and         (90    )     (64    )     (89    )     (155   )
equity investments
Proceeds from performance      -            -            -            199
bonds
Proceeds from government
grants for asset               2            1            122          8
construction
Proceeds from loan             1            -            1            -
repayments
Other investing                20           9            (1     )     (2     )
Net cash used in investing     (347   )     (3,172 )     (1,023 )     (4,906 )
activities
FINANCING ACTIVITIES:
(Repayments) borrowings
under the revolving credit     1            311          (321   )     437
facilities, net
Issuance of recourse debt      -            -            -            2,050
Issuance of non-recourse       569          1,702        1,391        3,218
debt
Repayments of recourse         (227   )     (2     )     (235   )     (476   )
debt
Repayments of non-recourse     (566   )     (728   )     (1,325 )     (2,217 )
debt
Payments for financing         (16    )     (49    )     (40    )     (202   )
fees
Distributions to               (154   )     (98    )     (895   )     (1,088 )
noncontrolling interests
Contributions from             31           -            43           6
noncontrolling interests
Dividends paid on AES          (30    )     -            (30    )     -
common stock
Financed capital               (4     )     (18    )     (34    )     (31    )
expenditures
Purchase of treasury stock     -            (54    )     (301   )     (279   )
Other financing                -            1            8            (6     )
Net cash (used in)
provided by financing          (396   )     1,065        (1,739 )     1,412
activities
Effect of exchange rate        (4     )     (43    )     5            (122   )
changes on cash
(Increase) decrease in
cash of discontinued and       25           (75    )     131          (79    )
held for sale businesses
Total increase (decrease)
in cash and cash               50           (1,654 )     275          (811   )
equivalents
Cash and cash equivalents,     1,920        3,349        1,695        2,506   
beginning
Cash and cash equivalents,   $ 1,970      $ 1,695      $ 1,970      $ 1,695   
ending
                                                                       

 
THE AES CORPORATION
ADJUSTED PRE-TAX CONTRIBUTION (PTC) AND ADJUSTED EPS (unaudited)
 
                          (In millions, except per share amounts)
                                                       
                          Three Months Ended            Three Months Ended

                          December 31, 2012             December 31, 2011
                                      Per Share                  Per Share
                                      (Diluted)                  (Diluted)
                          Net of      Net of NCI          Net of Net of NCI
                          NCI*        and Tax             NCI*   and Tax
Income from continuing
operations attributable
to AES and Diluted EPS      $ 229     $   0.31            $ 139  $   0.18
from continuing
operations
Add back income tax
expense from continuing       116                           106
operations attributable
to AES
Pre-tax contribution      $   345                       $   245
                                                                    
Adjustments:
Unrealized derivatives    $   34      $   0.04          $   9    $   0.01
losses ^ (1)
Unrealized foreign
currency transaction          (8  )       (0.02 )           16       0.03
(gains)/ losses ^ (2)
Impairment (gains) /          (30 )       (0.02 )^(3)       14       0.01 ^(4)
losses
Debt retirement losses        16          0.01  ^(5)        4        -     
Adjusted PTC and          $   357     $   0.32          $   288  $   0.23  
Adjusted EPS
*NCI is defined as
noncontrolling interest

^(1)   Unrealized derivative losses were net of income tax per share of $0.01
       and $0.00 in 2012 and 2011, respectively.
        
^(2)   Unrealized foreign currency transaction (gains) losses were net of
       income tax per share of $0.01 and $0.00 in 2012 and 2011, respectively.
        
       Amount primarily relates to the reduction in the goodwill impairment at
^(3)   DPL of $33 million ($33 million, or $0.04 per share, net of income tax
       of $0.00 per share).
        
       Amount includes the asset impairment at Kelanitissa of $5 million ($4
^(4)   million, or $0.01 per share, net of noncontrolling interest of $1
       million and of income tax of $0.00 per share).
        
       Amount primarily relates to the loss on retirement of debt at the
^(5)   Parent Company of $15 million ($10 million, or $0.01 per share, net of
       income tax of $0.01 per share).

 
THE AES CORPORATION
ADJUSTED PRE-TAX CONTRIBUTION (PTC) AND ADJUSTED EPS (unaudited)
                                                      
                           (In millions, except per share amounts)
                                                                     
                           Year Ended                  Year Ended

                           December 31, 2012           December 31, 2011
                                       Per Share                Per Share
                                       (Diluted)                (Diluted)
                           Net of      Net of NCI        Net of Net of NCI and
                           NCI*        and Tax           NCI*   Tax
Income (loss) from
continuing operations
attributable to AES and    $ (915  )   $ (1.21 )       $ 492    $   0.63
GAAP Diluted EPS from
continuing operations
Adjustment to Diluted                  $ 0.01                       -      
shares
Non-GAAP Diluted EPS
from continuing                        $ (1.20 )                $   0.63   
operations
Add back income tax
expense from continuing      446                         220
operations attributable
to AES
Pre-tax contribution       $ (469  )                   $ 712
                                                                     
Adjustments
                                                                     
Unrealized derivatives     $ 118       $ 0.11          $ 11     $   0.01
losses ^ (1)
Unrealized foreign
currency transaction         (18   )     (0.03 )         38         0.05
(gains)/ losses ^ (2)
Disposition/ acquisition     (206  )     (0.18 )^(3)     -          -
(gains)
Impairment losses            1,936       2.53  ^(4)      271        0.29  ^(5)
Debt retirement losses       16          0.01  ^(6)      46         0.04  ^(7)
Adjusted PTC and           $ 1,377     $ 1.24          $ 1,078  $   1.02   
Adjusted EPS
*NCI is defined as noncontrolling interest

^(1)   Unrealized derivative losses were net of income tax per share of $0.04
       and $0.01 in 2012 and 2011, respectively.
        
^(2)   Unrealized foreign currency transaction (gains) losses were net of
       income tax per share of $0.00 and $0.00 in 2012 and 2011, respectively.
        
       Amount primarily relates to the gains from the sale of 80% of our
       interest in Cartagena for $178 million ($109 million, or $0.14 per
^(3)   share, net of income tax of $0.09 per share) and equity method
       investments in China of $24 million ($25 million, or $0.03 per share,
       including an income tax credit of $1 million, or $0.00 per share).
        
       Amount primarily relates to the goodwill impairment at DPL of $1.82
       billion ($1.82 billion, or $2.39 per share, net of income tax of $0.00
       per share). Amount also includes other-than-temporary impairment of
       equity method investments in China of $32 million ($32 million, or
       $0.04 per share, net of income tax of $0.00 per share), and at InnoVent
^(4)   of $17 million ($17 million, or $0.02 per share, net of income tax of
       $0.00 per share), as well as asset impairments of wind turbines and
       projects of $41 million ($26 million, or $0.03 per share, net of income
       tax of $0.02 per share), at Kelanitissa of $19 million ($17 million, or
       $0.02 per share, net of noncontrolling interest of $2 million and of
       income tax of $0.00 per share), and at St. Patrick of $11 million ($11
       million, or $0.01 per share, net of income tax of $0.00 per share).
        
       Amount includes other-than-temporary impairment of equity method
       investments at Chigen, including Yangcheng, of $79 million ($79
       million, or $0.10 per share, net of income tax of $0.00 per share),
       asset impairments of wind turbines of $116 million ($75 million, or
^(5)   $0.10 per share, net of income tax of $0.05 per share), Kelanitissa of
       $42 million ($38 million, or $0.05 per share, net of noncontrolling
       interest of $4 million and of income tax of $0.00 per share), Bohemia
       of $9 million ($9 million, and $0.01 per share, net of income tax of
       $0.00 per share), and goodwill impairment at Chigen of $17 million ($17
       million or $0.02 per share, net of income tax of $0.00 per share).
        
       Amount primarily relates to the loss on retirement of debt at the
^(6)   Parent Company of $15 million ($10 million, or $0.01 per share, net of
       income tax of $0.01 per share).
        
       Amount includes loss on retirement of debt at Gener of $38 million ($22
       million, or $0.03 per share, net of noncontrolling interest of $11
^(7)   million and of income tax of $0.01 per share) and at IPL of $15 million
       ($10 million, or $0.01 per share, net of income tax of $0.01 per
       share).

 
THE AES CORPORATION
NON-GAAP FINANCIAL MEASURES (unaudited)
                                                                      
                                          Three Months Ended Year Ended
                                          December 31,       December 31,
($ in millions)                           2012       2011    2012      2011
                                                                          
Calculation of Maintenance Capital
Expenditures for
Free Cash Flow ^ (1) Reconciliation
Below:
                                                                          
Maintenance Capital Expenditures          $  300     $ 244   $ 968     $ 889
Environmental Capital Expenditures           23        23      75        82
Growth Capital Expenditures                  336       349     1,227     1,490
Total Capital Expenditures                $  659     $ 616   $ 2,270   $ 2,461
                                                                          
                                                                          
Reconciliation of Proportional
Operating Cash Flow^(2)
                                                                          
Consolidated Operating Cash Flow          $  772     $ 571   $ 2,901   $ 2,884
Less: Proportional Adjustment Factor         281       237     966       1,312
Proportional Operating Cash Flow^(2)      $  491     $ 334   $ 1,935   $ 1,572
                                                                          
                                                                          
Reconciliation of Free Cash Flow^(1)
                                                                          
Consolidated Operating Cash Flow          $  772     $ 571   $ 2,901   $ 2,884
Less: Maintenance Capital Expenditures,      269       239     923       878
net of reinsurance proceeds
Less: Environmental Capital                  23        23      75        82
Expenditures
Free Cash Flow^(1)                        $  480     $ 309   $ 1,903   $ 1,924
                                                                          
                                                                          
Reconciliation of Proportional Free
Cash Flow^(1),(2)
                                                                          
Proportional Operating Cash Flow          $  491     $ 334   $ 1,935   $ 1,572
Less: Proportional Maintenance Capital
Expenditures, net of reinsurance             198       166     693       640
proceeds and Environmental Capital
Expenditures
Proportional Free Cash Flow^(1),(2)       $  293     $ 168   $ 1,242   $ 932

       Free Cash Flow (a non-GAAP financial measure) is defined as net cash
       from operating activities less maintenance capital expenditures
       (including environmental capital expenditures), net of reinsurance
^(1)   proceeds from third parties. AES believes that free cash flow is a
       useful measure for evaluating our financial condition because it
       represents the amount of cash provided by operations less maintenance
       capital expenditures as defined by our businesses, that may be
       available for investing or for repaying debt.
        
^(2)   See footnote (2) on Guidance Elements for definition of proportional
       financial metrics.

                                                                    
The AES Corporation
Parent Financial Information
Parent only data: last
four quarters
($ in millions)            4 Quarters Ended
                           December 31,   September 30,   June 30,   March 31,
Total subsidiary
distributions & returns    2012           2012            2012       2012
of capital to Parent
                           Actual         Actual          Actual     Actual
Subsidiary distributions   $  1,332       $    1,252      $  1,267   $  1,287
^(1) to Parent & QHCs
Returns of capital
distributions to Parent       29               143           233        207
& QHCs
Total subsidiary
distributions & returns    $  1,361       $    1,395      $  1,500   $  1,494
of capital to parent
                                                                      
                                                                      
Parent only data:
quarterly
($ in millions)            Quarter Ended
                           December 31,   September 30,   June 30,   March 31,
Total subsidiary
distributions & returns    2012           2012            2012       2012
of capital to Parent
                           Actual         Actual          Actual     Actual
Subsidiary distributions   $  450         $    331        $  374     $  176
^ to Parent & QHCs
Returns of capital
distributions to Parent       (100   )         12            34         83
& QHCs
Total subsidiary
distributions & returns    $  350         $    343        $  408     $  259
of capital to Parent
                                                                      
                                                                      
Parent Company Liquidity   Balance at
^(2)
($ in millions)            December 31,   September 30,   June 30,   March 31,
                           2012           2012            2012       2012
                           Actual         Actual          Actual     Actual
Cash at Parent & Cash at   $  311         $    444        $  240     $  133
QHCs ^(3)
Availability under            795              795           795        778
credit facilities
Ending liquidity           $  1,106       $    1,239      $  1,035   $  911

       Subsidiary distributions should not be construed as an alternative to
       Net Cash Provided by Operating Activities which are determined in
       accordance with GAAP. Subsidiary distributions are important to the
       Parent Company because the Parent Company is a holding company that
       does not derive any significant direct revenues from its own activities
       but instead relies on its subsidiaries’ business activities and the
       resultant distributions to fund the debt service, investment and other
       cash needs of the holding company. The reconciliation of difference
       between the subsidiary distributions and the Net Cash Provided by
       Operating Activities consists of cash generated from operating
^(1)   activities that is retained at the subsidiaries for a variety of
       reasons which are both discretionary and non-discretionary in nature.
       These factors include, but are not limited to, retention of cash to
       fund capital expenditures at the subsidiary, cash retention associated
       with non-recourse debt covenant restrictions and related debt service
       requirements at the subsidiaries, retention of cash related to
       sufficiency of local GAAP statutory retained earnings at the
       subsidiaries, retention of cash for working capital needs at the
       subsidiaries, and other similar timing differences between when the
       cash is generated at the subsidiaries and when it reaches the Parent
       Company and related holding companies.
        
       Parent Company Liquidity is defined as cash at the Parent Company plus
       availability under corporate credit facilities plus cash at qualified
^(2)   holding companies (QHCs). AES believes that unconsolidated Parent
       Company liquidity is important to the liquidity position of AES as a
       Parent Company because of the non-recourse nature of most of AES’s
       indebtedness.
        
       The cash held at QHCs represents cash sent to subsidiaries of the
       company domiciled outside of the US. Such subsidiaries had no
       contractual restrictions on their ability to send cash to AES, the
       Parent Company. Cash at those subsidiaries was used for investment and
       related activities outside of the US. These investments included equity
^(3)   investments and loans to other foreign subsidiaries as well as
       development and general costs and expenses incurred outside the US.
       Since the cash held by these QHCs is available to the Parent, AES uses
       the combined measure of subsidiary distributions to Parent and QHCs as
       a useful measure of cash available to the Parent to meet its
       international liquidity needs.

 
THE AES CORPORATION
2012 FINANCIAL GUIDANCE ELEMENTS^(1)
                                                              
                            2012 Updated Financial Guidance (as of 11/7/2012)
                                                                
                                               Proportional
                            Consolidated       Adjustment      Proportional
                                               Factors^(2)
                                                                
Income Statement Elements
                                                                
Gross Margin                $3,600 to 3,800    $950 million    $2,650 to 2,850
                            million                            million
                                                                
Adjusted Earnings Per       $1.22 to 1.30
Share^(3)
                                                                
Cash Flow Elements
                                                                
Net Cash From Operating     $2,900 to 3,100    $975 million    $1,925 to 2,125
Activities                  million                            million
                                                                
Operational Capital         $1,050 to 1,125    $300 million    $725 to 850
Expenditures (a)            million                            million
                                                                
Environmental Capital       $100 to 125        $25 million     $75 to 100
Expenditures (b)            million                            million
                                                                
Maintenance Capital         $1,150 to 1,250    $325 million    $800 to 950
Expenditures (a + b)        million                            million
                                                                
Free Cash Flow ^(4)         $1,700 to 1,900    $650 million    $1,050 to 1,250
                            million                            million
                                                                
Subsidiary Distributions    $1,325 to 1,525
^(5)                        million
                                                                
Parent Free Cash Flow ^     $550 to 650
(6)                         million
                                                                
Reconciliation of Free
Cash Flow
                                                                
Net Cash from Operating     $2,900 to 3,100    $975 million    $1,925 to 2,125
Activities                  million                            million
                                                                
Less: Maintenance Capital   $1,150 to 1,250    $325 million    $800 to 950
Expenditures                million                            million
                                                                
Free Cash Flow ^(7)         $1,700 to 1,900    $650 million    $1,050 to 1,250
                            million                            million
                                                                
Reconciliation of Parent
Free Cash Flow
                                                                
Subsidiary distributions    $1,325 to 1,525
                            million
                                                                
Less: Cash Interest         $450 to 500
                            million
                                                                
Less: Cash for              $325 to 375
development, SGA, and       million
taxes
                                                                
Parent Free Cash Flow       $550 to 650
^(6)                        million
                                                                
Reconciliation of
Adjusted Pre-Tax
Contribution ^(7)
                                                                
Adjusted Pre-Tax            $1,900 to 2,100
Contribution ^(7) Before    million
Corporate Charges
                                                                
Less: Corporate Charges     $650 to 750
                            million
                                                                
Adjusted Pre-Tax            $1,250 to 1,350
Contribution ^(7) After     million
Corporate Charges

^(1)   2012 Guidance is based on expectations for future foreign exchange
       rates and commodity prices as of September 30, 2012.
       AES is a holding company that derives its income and cash flows from
       the activities of its subsidiaries, some of which may not be
       wholly-owned by the Company. Accordingly, the Company has presented
       certain financial metrics which are defined as Proportional (a non-GAAP
       financial measure). Proportional metrics present the Company’s estimate
       of its share in the economics of the underlying metric. The Company
       believes that the Proportional metrics are useful to investors because
       they exclude the economic share in the metric presented that is held by
       non-AES shareholders. For example, Net Cash from Operating Activities
       (Operating Cash Flow) is a GAAP metric which presents the Company’s
       cash flow from operations on a consolidated basis, including operating
       cash flow allocable to noncontrolling interests. Proportional Operating
       Cash Flow removes the share of operating cash flow allocable to
^(2)   noncontrolling interests and therefore may act as an aid in the
       valuation of the Company. Proportional metrics are reconciled to the
       nearest GAAP measure. Certain assumptions have been made to estimate
       our proportional financial measures. These assumptions include: (i) the
       Company’s economic interest has been calculated based on a blended rate
       for each consolidated business when such business represents multiple
       legal entities; (ii) the Company’s economic interest may differ from
       the percentage implied by the recorded net income or loss attributable
       to noncontrolling interests or dividends paid during a given period;
       (iii) the Company’s economic interest for entities accounted for using
       the hypothetical liquidation at book value method is 100%; (iv)
       individual operating performance of the Company’s equity method
       investments is not reflected and (v) inter-segment transactions are
       included as applicable for the metric presented.
       Adjusted earnings per share (a non-GAAP financial measure) is defined
       as diluted earnings per share from continuing operations excluding
       gains or losses of the consolidated entity due to (a) unrealized gains
       or losses related to derivative transactions, (b) unrealized foreign
       currency gains or losses, (c) significant gains or losses due to
       dispositions and acquisitions of business interests, (d) significant
       losses due to impairments, and (e) costs due to the early retirement of
       debt. The GAAP measure most comparable to Adjusted EPS is diluted
       earnings per share from continuing operations. AES believes that
       adjusted earnings per share better reflects the underlying business
       performance of the Company, and is considered in the Company's internal
^(3)   evaluation of financial performance. Factors in this determination
       include the variability due to unrealized gains or losses related to
       derivative transactions, unrealized foreign currency gains or losses,
       losses due to impairments and strategic decisions to dispose or acquire
       business interests or retire debt, which affect results in a given
       period or periods. Adjusted earnings per share should not be construed
       as an alternative to diluted earnings per share from continuing
       operations, which is determined in accordance with GAAP. Non-GAAP
       financial measure as reconciled in the table. Beginning in the first
       quarter of 2013, the Company will exclude in its determination of
       Adjusted EPS all gains or losses due to dispositions and acquisitions
       of business interests and all losses due to impairments, not just those
       that were deemed significant per our previous definition.
       Free Cash Flow is reconciled above. Free cash flow (a non-GAAP
       financial measure) is defined as net cash from operating activities
       less maintenance capital expenditures (including environmental capital
^(4)   expenditures), net of reinsurance proceeds from third parties. AES
       believes that free cash flow is a useful measure for evaluating our
       financial condition because it represents the amount of cash provided
       by operations less maintenance capital expenditures as defined by our
       businesses, that may be available for investing or for repaying debt.
       Subsidiary distributions should not be construed as an alternative to
       Net Cash Provided by Operating Activities which are determined in
       accordance with GAAP. Subsidiary distributions are important to the
       Parent Company because the Parent Company is a holding company that
       does not derive any significant direct revenues from its own activities
       but instead relies on its subsidiaries' business activities and the
       resultant distributions to fund the debt service, investment and other
       cash needs of the holding company. The reconciliation of the difference
       between the subsidiary distributions and the Net Cash Provided by
       Operating Activities consists of cash generated from operating
^(5)   activities that is retained at the subsidiaries for a variety of
       reasons which are both discretionary and non-discretionary in nature.
       These factors include, but are not limited to, retention of cash to
       fund capital expenditures at the subsidiary, cash retention associated
       with non-recourse debt covenant restrictions and related debt service
       requirements at the subsidiaries, retention of cash related to
       sufficiency of local GAAP statutory retained earnings at the
       subsidiaries, retention of cash for working capital needs at the
       subsidiaries, and other similar timing differences between when the
       cash is generated at the subsidiaries and when it reaches the Parent
       Company and related holding companies.
       Parent Free Cash Flow is reconciled above. Parent Free Cash Flow (a
       non-GAAP financial measure) should not be construed as an alternative
^(6)   to Net Cash Provided by Operating Activities which is determined in
       accordance with GAAP. Parent Free Cash Flow is available to fund
       shareholder dividends, equity repurchases, growth investments, recourse
       debt repayments, and other uses by the Parent Company.
       Adjusted Pre-Tax Contribution (a non-GAAP financial measure) represents
       pre-tax income from continuing operations attributable to AES excluding
       gains or losses of the consolidated entity due to (a) unrealized gains
       or losses related to derivative transactions, (b) unrealized foreign
       currency gains or losses, (c) significant gains or losses due to
       dispositions and acquisitions of business interests, (d) significant
       losses due to impairments, and (e) costs due to the early retirement of
       debt. It includes net equity in earnings of affiliates, on an after-tax
       basis. The GAAP measure most comparable to Adjusted PTC is income from
       continuing operations attributable to AES. AES believes that Adjusted
       PTC better reflects the underlying business performance of the Company
       and is considered in the Company’s internal evaluation of financial
       performance. Factors in this determination include the variability due
^(7)   to unrealized gains or losses related to derivative transactions,
       unrealized foreign currency gains or losses, losses due to impairments
       and strategic decisions to dispose or acquire business interests or
       retire debt, which affect results in a given period or periods.
       Earnings before tax represents the business performance of the Company
       before the application of statutory income tax rates and tax
       adjustments, including the affects of tax planning, corresponding to
       the various jurisdictions in which the Company operates. Adjusted PTC
       should not be construed as an alternative to income from continuing
       operations attributable to AES, which is determined in accordance with
       GAAP. Beginning in the first quarter of 2013, the Company will exclude
       in its determination of Adjusted PTC all gains or losses due to
       dispositions and acquisitions of business interests and all losses due
       to impairments, not just those that were deemed significant per our
       previous definition.

                                                          
THE AES CORPORATION
2013 FINANCIAL GUIDANCE ELEMENTS^(1)
                                                            
                                      2013 Financial Guidance (as of 2/27/13)
                                                            
                                      Consolidated         Proportional ^(2)
                                                            
Income Statement Guidance
                                                            
Adjusted Earnings Per Share ^(3)      $1.24 to $1.32
                                                            
Cash Flow Guidance
                                                            
Net Cash Provided by Operating        $2,500 to $3,100
Activities                            million
                                                            
Free Cash Flow ^(4)                                        $750 to $1,050
                                                           million
                                                            
Reconciliation of Free Cash Flow
Guidance
                                                            
Net Cash from Operating Activities    $2,500 to $3,100     $1,650 to $1,950
                                      million              million
                                                            
Less: Maintenance Capital             $1,050 to $1,350     $750 to $1,050
Expenditures                          million              million
                                                            
Free Cash Flow ^(4)                   $1,300 to $1,900     $750 to $1,050
                                      million              million

^(1)   2013 Guidance is based on expectations for future foreign exchange
       rates and commodity prices as of December 31, 2012.
        
       AES is a holding company that derives its income and cash flows from
       the activities of its subsidiaries, some of which may not be
       wholly-owned by the Company. Accordingly, the Company has presented
       certain financial metrics which are defined as Proportional (a non-GAAP
       financial measure). Proportional metrics present the Company’s estimate
       of its share in the economics of the underlying metric. The Company
       believes that the Proportional metrics are useful to investors because
       they exclude the economic share in the metric presented that is held by
       non-AES shareholders. For example, Net Cash from Operating Activities
       (Operating Cash Flow) is a GAAP metric which presents the Company’s
       cash flow from operations on a consolidated basis, including operating
       cash flow allocable to noncontrolling interests. Proportional Operating
       Cash Flow removes the share of operating cash flow allocable to
^(2)   noncontrolling interests and therefore may act as an aid in the
       valuation of the Company. Proportional metrics are reconciled to the
       nearest GAAP measure. Certain assumptions have been made to estimate
       our proportional financial measures. These assumptions include: (i) the
       Company’s economic interest has been calculated based on a blended rate
       for each consolidated business when such business represents multiple
       legal entities; (ii) the Company’s economic interest may differ from
       the percentage implied by the recorded net income or loss attributable
       to noncontrolling interests or dividends paid during a given period;
       (iii) the Company’s economic interest for entities accounted for using
       the hypothetical liquidation at book value method is 100%; (iv)
       individual operating performance of the Company’s equity method
       investments is not reflected and (v) inter-segment transactions are
       included as applicable for the metric presented.
        
       Adjusted earnings per share (a non-GAAP financial measure) is defined
       as diluted earnings per share from continuing operations excluding
       gains or losses of the consolidated entity due to (a) mark-to-market
       amounts related to derivative transactions, (b) unrealized foreign
       currency gains or losses, (c) gains or losses due to dispositions and
       acquisitions of business interests, (d) losses due to impairments, and
       (e) costs due to the early retirement of debt. The GAAP measure most
       comparable to Adjusted EPS is diluted earnings per share from
       continuing operations. AES believes that adjusted earnings per share
       better reflects the underlying business performance of the Company, and
       is considered in the Company's internal evaluation of financial
^(3)   performance. Factors in this determination include the variability due
       to mark-to-market gains or losses related to derivative transactions,
       currency gains or losses, losses due to impairments and strategic
       decisions to dispose or acquire business interests or retire debt,
       which affect results in a given period or periods. Adjusted earnings
       per share should not be construed as an alternative to diluted earnings
       per share from continuing operations, which is determined in accordance
       with GAAP. Non-GAAP financial measure as reconciled in the table.
       Beginning in the first quarter of 2013, the Company will exclude in its
       determination of Adjusted EPS all gains or losses due to dispositions
       and acquisitions of business interests and all losses due to
       impairments, not just those that were deemed significant per our
       previous definition.
        
       Free Cash Flow is reconciled above. Free cash flow (a non-GAAP
       financial measure) is defined as net cash from operating activities
       less maintenance capital expenditures (including environmental capital
^(4)   expenditures), net of reinsurance proceeds from third parties. AES
       believes that free cash flow is a useful measure for evaluating our
       financial condition because it represents the amount of cash provided
       by operations less maintenance capital expenditures as defined by our
       businesses, that may be available for investing or for repaying debt.

Contact:

The AES Corporation
Investor Contact:
Ahmed Pasha, 703-682-6451
or
Media Contact:
Rich Bulger, 703-682-6318
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement