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

Wed Feb 27, 2013 6:00am EST

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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

ARLINGTON, Va.--(Business Wire)--
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 EPS1                                             $   1.24               $   1.02         $    0.32            $    0.23       
 Diluted EPS from Continuing Operations                    $   (1.21  )           $   0.63         $    0.31            $    0.18       
 Proportional Free Cash Flow1                              $   1,242      M       $   932    M     $    293   M         $    168   M    
 Consolidated Net Cash Provided by Operating Activities    $   2,901      M       $   2,884  M     $    772   M         $    571   M    


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 EPS1                                  $      1.24-1.32           
 Proportional Free Cash Flow1 (a)               $      750-1,050    M      
 Reconciling Factor2 (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 PTC1 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 PTC1,2            $       1,377   M         $      1,078  M      
 Adjusted Effective Tax Rate                  32%                      26%           
 Share Count                                  760                      783           
 Adjusted EPS1                        $       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 AFFILIATES                                                                            314                        2,211                      1,890          
 Income tax expense                                                                                                    (708     )                 (634     )                 (593     )     
 Net equity in earnings (losses) of affiliates                                                                         34                         (2       )                 184            
 INCOME (LOSS) FROM CONTINUING OPERATIONS                                                                              (360     )                 1,575                      1,481          
 Loss from operations of discontinued businesses, net of income tax                                                                                                                         
 expense (benefit) of $3, $(26) and $(284), respectively                                                               (13      )                 (131     )                 (486     )     
 Net gain from disposal and impairments of discontinued businesses, net of income                                                                                                           
 tax expense of $68, $300 and $132, respectively                                                                       16                         86                         64             
 NET INCOME (LOSS)                                                                                                     (357     )                 1,530                      1,059          
 Noncontrolling interests:                                                                                                                                                                  
 Less: Income from continuing operations attributable to noncontrolling interests                                      (555     )                 (1,083   )                 (985     )     
 Less: Income from discontinued operations attributable to noncontrolling interests                                    -                          (389     )                 (65      )     
 Total net income attributable to noncontrolling interests                                                             (555     )                 (1,472   )                 (1,050   )     
 NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION                                                           $     (912     )           $     58                   $     9              
 AMOUNTS ATTRIBUTABLE TO THE AES CORPORATION                                                                                                                                                
 COMMON STOCKHOLDERS:                                                                                                                                                                       
 Income (loss) from continuing operations, net of tax                                                            $     (915     )           $     492                  $     496            
 Income (loss) from discontinued operations, net of tax                                                                3                          (434     )                 (487     )     
 Net income (loss)                                                                                               $     (912     )           $     58                   $     9              
 BASIC EARNINGS PER SHARE:                                                                                                                                                                  
 Income (loss) from continuing operations attributable to The AES Corporation common stockholders, net of tax                                                                               
                                                                                                                 $     (1.21    )           $     0.63                 $     0.64           
 Loss from discontinued operations attributable to The AES Corporation common stockholders, net of tax                                                                                      
                                                                                                                       -                          (0.56    )                 (0.63    )     
 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 of tax                                                                               
                                                                                                                 $     (1.21    )           $     0.63                 $     0.64           
 Loss from discontinued operations attributable to The AES Corporation common stockholders, net of tax                                                                                      
                                                                                                                       -                          (0.56    )                 (0.63    )     
 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 Inter-SBU eliminations       (5     )              (10    )          (29     )           (41     )   
           Total Revenue                                $    4,640            $    4,183         $   18,141          $   16,923      


 (1)    MCAC includes MCAC Utilities which are reported within Corporate and Other in the segment disclosures provided in the notes to the Company's financial statements.                         
                                                                                                                                                                                                   
 (2)    EMEA includes Europe Utilities and Africa Utilities which are reported 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 shareand 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 of $309 and $273, respectively                   2,712                                   2,522               
 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 assets                                           -                                       233                 
 Total current assets                                                                                         8,465                                   9,229               
 NONCURRENT ASSETS                                                                                                                                                        
 Property, Plant and Equipment:                                                                                                                                           
 Land                                                                                                         1,008                                   1,089               
 Electric generation, distribution assets and other                                                           31,837                                  31,068              
 Accumulated depreciation                                                                                     (9,723    )                             (8,944    )         
 Construction in progress                                                                                     2,791                                   1,788               
 Property, plant and equipment, net                                                                           25,913                                  25,001              
 Other Assets:                                                                                                                                                            
 Investments in and advances to affiliates                                                                    1,196                                   1,422               
 Debt service reserves and other deposits                                                                     565                                     876                 
 Goodwill                                                                                                     1,999                                   3,820               
 Other intangible assets, net of accumulated amortization of $276 and $164, respectively                      429                                     545                 
 Deferred income taxes                                                                                        996                                     715                 
 Other noncurrent assets                                                                                      2,242                                   2,346               
 Noncurrent assets of discontinued operations and held for sale assets                                        25                                      1,392               
 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 to variable interest entities               2,843                                   2,123               
 Recourse debt                                                                                                11                                      305                 
 Current liabilities of discontinued operations and held for sale businesses                                  -                                       286                 
 Total current liabilities                                                                                    8,319                                   8,438               
 NONCURRENT LIABILITIES                                                                                                                                                   
 Non-recourse debt including $1,187 and $1,156, respectively, related to variable interest entities           12,568                                  13,412              
 Recourse debt                                                                                                5,951                                   6,180               
 Deferred income taxes                                                                                        1,238                                   1,321               
 Pension and other post-retirement liabilities                                                                2,456                                   1,729               
 Other noncurrent liabilities                                                                                 3,706                                   3,111               
 Noncurrent liabilities of discontinued operations and held for sale businesses                               -                                       1,348               
 Total noncurrent liabilities                                                                                 25,919                                  27,101              
 Commitments and Contingencies (see Notes 13 and 14)                                                                                                                      
 Cumulative preferred stock of subsidiaries                                                                   78                                      78                  
 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 deficit)                                                                      (264      )                             678                 
 Accumulated other comprehensive loss                                                                         (2,920    )                             (2,758    )         
 Treasury stock, at cost (66,415,984 and 42,386,961 shares at December 31, 2012 and 2011, respectively)       (780      )                             (489      )         
 Total The AES Corporation stockholders' equity                                                               4,569                                   5,946               
 NONCONTROLLING INTERESTS                                                                                     2,945                                   3,783               
 Total equity                                                                                                 7,514                                   9,729               
 TOTAL LIABILITIES AND EQUITY                                                                              $  41,830                        $         45,346              


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


                                                                                                                                                                                                   
 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 from continuing operations         $    229            $         0.31                   $    139       $         0.18       
 Add back income tax expense from continuing operations attributable to AES                                    116                                                  106                            
 Pre-tax contribution                                                                                $         345                                        $         245                            
                                                                                                                                                                                                   
 Adjustments:                                                                                                                                                                                      
 Unrealized derivatives losses (1)                                                                   $         34             $         0.04              $         9         $         0.01       
 Unrealized foreign currency transaction (gains)/ losses (2)                                                   (8   )                   (0.02  )                    16                  0.03       
 Impairment (gains) / losses                                                                                   (30  )                   (0.02  )(3)                 14                  0.01  (4)  
 Debt retirement losses                                                                                        16                       0.01   (5)                  4                   -          
 Adjusted PTC and Adjusted EPS                                                                       $         357            $         0.32              $         288       $         0.23       
 *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.                                              
                                                                                                                                                                                                
 (3)    Amount primarily relates to the reduction in the goodwill impairment at DPL of $33 million ($33 million, or $0.04 per share, net of income tax of $0.00 per share).                     
                                                                                                                                                                                                
 (4)    Amount includes the asset impairment at Kelanitissa of $5 million ($4 million, or $0.01 per share, net of noncontrolling interest of $1 million and of income tax of $0.00 per share).  
                                                                                                                                                                                                
 (5)    Amount primarily relates to the loss on retirement of debt at the 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 GAAP Diluted EPS from continuing operations    $    (915   )         $     (1.21  )          $     492          $      0.63          
 Adjustment to Diluted shares                                                                                                          $     0.01                                        -             
 Non-GAAP Diluted EPS from continuing operations                                                                                       $     (1.20  )                             $      0.63          
 Add back income tax expense from continuing operations attributable to AES                                           446                                            220                               
 Pre-tax contribution                                                                                            $    (469   )                                 $     712                               
                                                                                                                                                                                                       
 Adjustments                                                                                                                                                                                           
                                                                                                                                                                                                       
 Unrealized derivatives losses (1)                                                                               $    118              $     0.11              $     11           $      0.01          
 Unrealized foreign currency transaction (gains)/ losses (2)                                                          (18    )               (0.03  )                38                  0.05          
 Disposition/ acquisition (gains)                                                                                     (206   )               (0.18  )(3)             -                   -             
 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 Adjusted EPS                                                                                   $    1,377            $     1.24              $     1,078        $      1.02          
 *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.                                
                                                                                                                                                                                  
 (3)    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 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).         
                                                                                                                                                                                  
 (4)    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 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).  
                                                                                                                                                                                  
 (5)    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 $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).                                                                                                                                                                   
                                                                                                                                                                                  
 (6)    Amount primarily relates to the loss on retirement of debt at the Parent Company of $15 million ($10 million, or $0.01 per share, net of income tax of $0.01 per share).  
                                                                                                                                                                                  
 (7)    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 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, net of reinsurance proceeds                                                              269               239              923              878    
 Less: Environmental Capital Expenditures                                                                                         23                23               75               82     
 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 proceeds and Environmental Capital Expenditures          198               166              693              640    
 Proportional Free Cash Flow(1),(2)                                                                                         $     293         $     168         $    1,242       $    932    


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


 (1)    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 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.                                                                                                                             
                                                                                                                                                                                  
 (2)    Parent Company Liquidity is defined as cash at the Parent Company plus availability under corporate credit facilities plus cash at qualified 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.                                                                                                                                                       
                                                                                                                                                                                  
 (3)    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   
        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 Factors(2)              Proportional             
                                                                                                                                                                
 Income Statement Elements                                                                                                                                      
                                                                                                                                                                
 Gross Margin                                                  $3,600 to 3,800 million              $950 million                       $2,650 to 2,850 million  
                                                                                                                                                                
 Adjusted Earnings Per Share(3)                                $1.22 to 1.30                                                                                    
                                                                                                                                                                
 Cash Flow Elements                                                                                                                                             
                                                                                                                                                                
 Net Cash From Operating Activities                            $2,900 to 3,100 million              $975 million                       $1,925 to 2,125 million  
                                                                                                                                                                
 Operational Capital Expenditures (a)                          $1,050 to 1,125 million              $300 million                       $725 to 850 million      
                                                                                                                                                                
 Environmental Capital Expenditures (b)                        $100 to 125 million                  $25 million                        $75 to 100 million       
                                                                                                                                                                
 Maintenance Capital Expenditures (a + b)                      $1,150 to 1,250 million              $325 million                       $800 to 950 million      
                                                                                                                                                                
 Free Cash Flow (4)                                            $1,700 to 1,900 million              $650 million                       $1,050 to 1,250 million  
                                                                                                                                                                
 Subsidiary Distributions (5)                                  $1,325 to 1,525 million                                                                          
                                                                                                                                                                
 Parent Free Cash Flow (6)                                     $550 to 650 million                                                                              
                                                                                                                                                                
 Reconciliation of Free Cash Flow                                                                                                                               
                                                                                                                                                                
 Net Cash from Operating Activities                            $2,900 to 3,100 million              $975 million                       $1,925 to 2,125 million  
                                                                                                                                                                
 Less: Maintenance Capital Expenditures                        $1,150 to 1,250 million              $325 million                       $800 to 950 million      
                                                                                                                                                                
 Free Cash Flow (7)                                            $1,700 to 1,900 million              $650 million                       $1,050 to 1,250 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 development, SGA, and taxes                    $325 to 375 million                                                                              
                                                                                                                                                                
 Parent Free Cash Flow (6)                                     $550 to 650 million                                                                              
                                                                                                                                                                
 Reconciliation of Adjusted Pre-Tax Contribution (7)                                                                                                            
                                                                                                                                                                
 Adjusted Pre-Tax Contribution (7) Before Corporate Charges    $1,900 to 2,100 million                                                                          
                                                                                                                                                                
 Less: Corporate Charges                                       $650 to 750 million                                                                              
                                                                                                                                                                
 Adjusted Pre-Tax Contribution (7) After Corporate Charges     $1,250 to 1,350 million                                                                          


 (1)    2012 Guidance is based on expectations for future foreign exchange rates and commodity prices as of September 30, 2012.                                                   
 (2)    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 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.                                                                                                                                                         
 (3)    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 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.                                            
 (4)    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 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.                                                                                                                             
 (5)    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 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.                                                                                                                 
 (6)    Parent Free Cash Flow is reconciled above. Parent Free Cash Flow (a non-GAAP financial measure) should not be construed as an alternative 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.                                                                                              
 (7)    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 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 Activities           $2,500 to $3,100 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 million                  $1,650 to $1,950 million  
                                                                                                                         
 Less: Maintenance Capital Expenditures              $1,050 to $1,350 million                  $750 to $1,050 million    
                                                                                                                         
 Free Cash Flow (4)                                  $1,300 to $1,900 million                  $750 to $1,050 million    


 (1)    2013 Guidance is based on expectations for future foreign exchange rates and commodity prices as of December 31, 2012.                                                    
                                                                                                                                                                                  
 (2)    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 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.                                                                                                                                                         
                                                                                                                                                                                  
 (3)    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 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.                                                                                     
                                                                                                                                                                                  
 (4)    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 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.                                                                                                                             


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

Copyright Business Wire 2013

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