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AES 2007 Fact Book Update FINAL

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  • 1. Consolidated Statements of Operations In millions, except per share data, for the years ended December 31 2005 2006 2007 (Restated) (Restated) Revenues Regulated $5,584 $6,154 $6,867 Non-Regulated 4,663 5,422 6,721 Total Revenues $10,247 $11,576 $13,588 Cost of Sales Regulated ($4,003) ($4,075) ($4,747) Non-Regulated (3,374) (4,067) (5,432) Total Cost of Sales ($7,377) ($8,142) ($10,179) Gross Margin $2,870 $3,434 $3,409 General & Administrative Expenses (221) (301) (379) Interest Expense (1,828) (1,769) (1,788) Interest Income 381 434 500 Other Income (Expense), Net 48 (336) 103 (Loss) Gain on Sale of Investments - 98 134 Loss on Sale of Subsidiary Stock - (535) - Impairment Expense (16) (17) (408) Foreign Currency Transaction (Losses) Gains, Net (143) (80) 24 Other Non-Operating Expense - - (57) Income Before Income Taxes, Equity in Earnings of Affiliates & Minority Interest $1,091 $928 $1,538 Income Tax Expense (473) (362) (685) Net Equity in Earnings of Affiliates 66 73 76 Minority Interest Expense (319) (463) (434) Income from Continuing Operations $365 $176 $495 Income from Operations of Discontinued Businesses 188 107 71 Gain (Loss) on Sale of Discontinued Businesses - (57) (661) Extraordinary Item - 21 - Cumulative Effect of Change in Accounting Principle (4) - - Net Income (Loss) $549 $247 ($95) Basic Earnings Income from Continuing Operations $0.56 $0.27 $0.74 Per Share Discontinued Operations 0.29 0.07 (0.88) Extraordinary Item - 0.03 - Cumulative Effect of Change in Accounting Principle (0.01) - - Basic Earnings (Loss) Per Share $0.84 $0.37 ($0.14) Basic Shares Outstanding 654 661 668 Diluted Earnings Income from Continuing Operations $0.56 $0.27 $0.73 Per Share Discontinued Operations 0.28 0.07 (0.87) Extraordinary Item - 0.03 - Cumulative Effect of Change in Accounting Principle (0.01) - - Diluted Earnings (Loss) Per Share $0.83 $0.37 ($0.14) Diluted Shares Outstanding 665 672 678 Adjusted EPS Diluted EPS from Continuing Operations $0.56 $0.27 $0.73 Reconciliation 1 FAS 133 Mark to Market (Gains) Losses 0.03 (0.05) 0.03 Currency Transaction (Gains) Losses 0.05 0.01 - Net Asset (Gains) Losses & Impairments 0.00 0.68 0.18 Debt Retirement (Gains) Losses 0.00 0.03 0.08 Adjusted EPS $0.64 $0.94 $1.02 Supplemental Depreciation and Amortization from Continuing Operations $770 $835 $932 Disclosure 1 A non-GAAP financial measure. See quot;Reconciliation of Non-GAAP Financial Measuresquot; for definition.
  • 2. Consolidated Balance Sheets In millions, as of December 31 2005 2006 2007 (Restated) (Restated) Assets Current Assets Cash & Cash Equivalents $1,169 $1,358 $2,058 Restricted Cash 437 548 522 Short-Term Investments 199 640 1,306 Accounts Receivable, Net 1,513 1,765 2,270 Inventory 414 445 480 Receivable from Affiliates 85 91 56 Deferred Income Taxes - Current 258 214 286 Prepaid Expenses 110 106 137 Other Current Assets 661 927 1,076 Current Assets of Held for Sale & Discontinued Businesses 448 484 145 Total Current Assets 5,294 6,578 8,336 Property, Plant & Land 831 921 1,052 Equipent Electric Generation & Distribution Assets 19,906 21,464 24,824 Accumulated Depreciation (5,540) (6,427) (7,591) Construction in Progress 686 987 1,774 Property, Plant & Equipment, Net 15,883 16,945 20,059 Other Assets Deferred Financing Costs, Net 267 311 352 Investments in & Advances to Affiliates 660 591 730 Debt Service Reserves & Other Deposits 525 515 568 Goodwill, Net 1,408 1,414 1,416 Other Intangible Assets, Net 485 498 466 Deferred Income Taxes - Noncurrent 703 601 647 Other Assets 1,391 1,587 1,698 Long-Term Assets of Held for Sale & Discontinued Businesses 2,409 2,234 181 Total Other Assets 7,848 7,751 6,058 Total Assets $29,025 $31,274 $34,453 Liabilities & Stockholders' Equity Current Liabilities Accounts Payable $999 $788 $1,073 Accrued Interest 372 404 255 Accrued & Other Liabilities 2,069 2,143 2,638 Recourse Debt - Current Position 200 - 223 Non-Recourse Debt - Current Position 1,356 1,402 1,142 Current Liabilities of Held for Sale & Discontinued Businesses 318 313 151 Total Current Liabilities 5,314 5,050 5,482 Long-Term Liabilities Non-Recourse Debt 10,308 9,840 11,297 Recourse Debt 4,682 4,790 5,332 Deferred Income Taxes - Noncurrent 772 809 1,197 Pension Liabilities & Other Post-Retirement Liabilities 829 844 921 Other Long-Term Liabilities 3,370 3,556 3,754 Long-Term Liabilities of Held for Sale & Discontinued Businesses 580 479 65 Total Long-Term Liabilities 20,541 20,318 22,566 Minority Interest 1,587 2,927 3,241 Stockholders' Equity Common Stock 7 7 7 Additional Paid-In Capital 6,566 6,659 6,776 Accumulated Deficit (1,340) (1,093) (1,241) Accumulated Other Comprehensive Loss (3,650) (2,594) (2,378) Total Stockholders' Equity 1,583 2,979 3,164 Total Liabilities & Stockholders' Equity $29,025 $31,274 $34,453
  • 3. Consolidated Statements of Cash Flows In millions, for the years ended December 31 2005 2006 2007 (Restated) (Restated) Operating Activities Net Income (Loss) 549 247 (95) Adjustments to Net Income (Loss): Depreciation & Amortization 864 933 942 Loss from Sale of Investments & Impairment Expense 45 471 333 (Gain) Loss on Disposal & Impairment Write-Down - Discontinued Operations - 57 669 Provision for Deferred Taxes 120 (10) 210 Minority Interest Expense 348 482 452 Contingencies (9) 173 196 (Gain) Loss on the Extinguishment of Debt 1 148 92 Other 175 12 (34) Changes in Operating Assets & Liabilities: Decrease (Increase) in Accounts Receivable - 94 (306) Increase in Inventory (58) (3) (26) Decrease (Increase) in Prepaid Expenses & Other Current Assets 123 (69) 335 Decrease (Increase) in Other Assets 83 149 (134) Decrease in Accounts Payable & Other Current Liabilities (124) (385) (398) Increase in Other Liabilities 103 52 121 Net Cash Provided by Operating Activities $2,220 $2,351 $2,357 Investing Activities Capital Expenditures ($826) ($1,460) ($2,425) Acquisitions - Net of Cash Acquired (85) (19) (315) Proceeds from the Sales of Businesses 22 898 1,136 Proceeds from the Sales of Assets 26 24 16 Sale of Short-Term Investments 1,499 2,011 2,492 Purchase of Short-Term Investments (1,345) (2,359) (2,982) Decrease (Increase) in Restricted Cash 94 (8) (28) Purchase of Emission Allowances (19) (77) (13) Proceeds from the Sales of Emission Allowances 42 82 17 (Decrease) Increase in Debt Service Reserves & Other Assets (93) 39 122 Purchase of Long-Term Available-for-Sale Securities - (52) (49) Repayment of Affiliate Loan - - 55 Other Investing 32 14 4 Net Cash Used in Investing Activities ($653) ($907) ($1,970) Financing Activities Borrowings (Repayments) Under the Revolving Credit Facilities, Net $53 $72 ($85) Issuance of Recourse Debt 5 - 2,000 Issuance of Non-Recourse Debt 1,710 3,097 2,297 Repayments of Recourse Debt (259) (150) (1,315) Repayments of Non-Recourse Debt (2,651) (4,059) (2,251) Payments for Deferred Financing Costs (21) (86) (97) Distributions to Minority Interests (186) (335) (699) Contributions from Minority Interests 1 125 374 Issuance of Common Stock 26 78 58 Financed Capital Expenditures (1) (52) (35) Other Financing (16) (7) (3) Net Cash (Used in) Provided by Financing Activities ($1,339) ($1,317) $244 Effect of Exchange Rate Changes on Cash 13 62 69 Total Increase in Cash & Cash Equivalents $241 $189 $700 Cash & Cash Equivalents, Beginning 928 1,169 1,358 Cash & Cash Equivalents, Ending $1,169 $1,358 $2,058 Supplemental Cash Payments for Interest - Net of Amounts Capitalized 1,674 1,718 1,762 Disclosures Cash Payments for Income Taxes - Net of Refunds 268 479 621 Maintenance Capital Expenditures 635 867 878 Growth Capital Expenditures 192 645 1,582 1 Free Cash Flow 1,585 1,484 1,479 Schedule of Non- Assets Acquired in Acquisitions - - 434 Cash Investing & Non-Recourse Debt Assumed in Acquisitions - - 647 Financing Activities Liabilities Extinguished Due to Sale of Assets - 30 134 Liabilities Assumed in Acquisitions - - 37 1 A non-GAAP financial measure. See quot;Reconciliation of Non-GAAP Financial Measuresquot; for definition.
  • 4. Segment Data In millions Revenues 1Q 2Q 3Q 4Q 2005 1Q 2Q 3Q 4Q 2006 1Q 2Q 3Q 4Q 2007 Latin America Generation $ 474 $ 516 $ 587 $ 568 $ 2,145 $ 600 $ 620 $ 685 $ 710 $ 2,615 $ 738 $ 818 $ 918 $ 1,036 $ 3,510 Utilities 984 1,009 1,014 1,120 4,127 1,095 1,140 1,162 1,155 4,552 1,171 1,306 1,312 1,383 5,172 Subtotal 1,458 1,525 1,601 1,688 6,272 1,695 1,760 1,847 1,865 7,167 1,909 2,124 2,230 2,419 8,682 North America Generation 385 435 436 489 1,745 528 465 513 422 1,928 498 551 576 543 2,168 Utilities 227 229 254 241 951 255 250 274 253 1,032 263 258 274 257 1,052 Subtotal 612 664 690 730 2,696 783 715 787 675 2,960 761 809 850 800 3,220 Europe, CIS & Generation 223 169 153 190 735 208 186 196 262 852 252 215 216 292 975 Africa Utilities 129 120 112 145 506 151 136 131 152 570 166 157 155 182 660 Subtotal 352 289 265 335 1,241 359 322 327 414 1,422 418 372 371 474 1,635 Asia & the Middle East Generation 155 137 136 172 600 180 240 191 174 785 200 251 235 203 889 Other (116) (134) (153) (159) (562) (188) (186) (190) (194) (758) (197) (216) (202) (223) (838) Total 2,461 2,481 2,539 2,766 10,247 2,829 2,851 2,962 2,934 11,576 3,091 3,340 3,484 3,673 13,588 Gross Margin 1Q 2Q 3Q 4Q 2005 1Q 2Q 3Q 4Q 2006 1Q 2Q 3Q 4Q 2007 Latin America Generation $ 179 $ 166 $ 280 $ 232 $ 857 $ 259 $ 254 $ 266 $ 273 $ 1,052 $ 249 $ 198 $ 184 $ 324 $ 955 Utilities 205 (42) 174 247 584 230 269 189 200 888 213 304 254 94 865 Subtotal 384 124 454 479 1,441 489 523 455 473 1,940 462 502 438 418 1,820 North America Generation 107 137 147 165 556 208 126 174 102 610 141 187 207 167 702 Utilities 82 75 87 57 301 64 59 89 65 277 81 78 86 68 313 Subtotal 189 212 234 222 857 272 185 263 167 887 222 265 293 235 1,015 Europe, CIS & Generation 73 34 23 55 185 79 55 37 76 247 89 43 35 108 275 Africa Utilities 30 23 15 41 109 35 27 29 12 103 21 21 22 (1) 63 Subtotal 103 57 38 96 294 114 82 66 88 350 110 64 57 107 338 Asia & the Middle East Generation 69 64 55 55 243 49 56 53 43 201 47 60 47 39 193 Other 10 9 10 6 35 12 13 13 18 56 8 13 12 10 43 Total 755 466 791 858 2,870 936 859 850 789 3,434 849 904 847 809 3,409
  • 5. Segment Data Depreciation & Amortization from Continuing Operations 1Q 2Q 3Q 4Q 2005 1Q 2Q 3Q 4Q 2006 1Q 2Q 3Q 4Q 2007 Latin America Generation $ (33) $ (33) $ (33) $ (37) $ (136) $ (37) $ (37) $ (38) $ (42) $ (154) $ (41) $ (40) $ (44) $ (44) $ (169) Utilities (36) (39) (40) (40) (155) (43) (45) (46) (48) (182) (47) (50) (48) (54) (199) Subtotal (69) (72) (73) (77) (291) (80) (82) (84) (90) (336) (88) (90) (92) (98) (368) North America Generation (39) (40) (40) (43) (162) (42) (42) (42) (41) (167) (44) (47) (50) (49) (190) Utilities (34) (33) (34) (35) (136) (34) (34) (34) (34) (136) (34) (35) (35) (38) (142) Subtotal (73) (73) (74) (78) (298) (76) (76) (76) (75) (303) (78) (82) (85) (87) (332) Europe, CIS & Generation (16) (16) (14) (14) (60) (15) (15) (16) (15) (61) (17) (17) (20) (20) (74) Africa Utilities (12) (12) (12) (11) (47) (12) (12) (13) (12) (49) (13) (15) (14) (16) (58) Subtotal (28) (28) (26) (25) (107) (27) (27) (29) (27) (110) (30) (32) (34) (36) (132) Asia & the Middle East Generation (16) (16) (16) (14) (62) (16) (16) (16) (14) (62) (16) (15) (15) (14) (60) Other - (4) (4) (4) (12) (4) (6) (5) (9) (24) (7) (8) (12) (13) (40) Total (186) (193) (193) (198) (770) (203) (207) (210) (215) (835) (219) (227) (238) (248) (932) Interest Expense 1Q 2Q 3Q 4Q 2005 1Q 2Q 3Q 4Q 2006 1Q 2Q 3Q 4Q 2007 Latin America Generation $ (85) $ (71) $ (66) $ (96) $ (318) $ (69) $ (72) $ (78) $ (72) $ (291) $ (65) $ (56) $ (82) $ (97) $ (300) Utilities (113) (136) (140) (154) (543) (117) (131) (142) (121) (511) (109) (110) (104) (116) (439) Subtotal (198) (207) (206) (250) (861) (186) (203) (220) (193) (802) (174) (166) (186) (213) (739) North America Generation (59) (69) (56) (67) (251) (57) (58) (70) (65) (250) (71) (68) (85) (86) (310) Utilities (29) (28) (29) (29) (115) (29) (28) (29) (34) (120) (29) (29) (30) (30) (118) Subtotal (88) (97) (85) (96) (366) (86) (86) (99) (99) (370) (100) (97) (115) (116) (428) Europe, CIS & Generation (16) (16) (15) (15) (62) (15) (11) (18) (14) (58) (14) (16) (18) (17) (65) Africa Utilities (4) (4) (3) (1) (12) (2) (2) (3) (3) (10) (3) - (2) (5) (10) Subtotal (20) (20) (18) (16) (74) (17) (13) (21) (17) (68) (17) (16) (20) (22) (75) Asia & the Middle East Generation (23) (25) (23) (23) (94) (22) (22) (24) (21) (89) (24) (23) (24) (23) (94) Other Recourse (110) (110) (105) (108) (433) (106) (108) (111) (112) (437) (109) (110) (107) (124) (450) Non-Recourse - - - - - (2) (1) - - (3) - - (1) (1) (2) Subtotal (110) (110) (105) (108) (433) (108) (109) (111) (112) (440) (109) (110) (108) (125) (452) Total (439) (459) (437) (493) (1,828) (419) (433) (475) (442) (1,769) (424) (412) (453) (499) (1,788)
  • 6. Segment Data Income from Continuing Operations Before Income Taxes, Equity in Earnings of Affiliates & Minority Interest 1Q 2Q 3Q 4Q 2005 1Q 2Q 3Q 4Q 2006 1Q 2Q 3Q 4Q 2007 Latin America Generation $ 104 $ 106 $ 234 $ 133 $ 577 $ 232 $ 196 $ 208 $ 147 $ 783 $ 208 $ 291 $ 137 $ 14 $ 650 Utilities 124 (34) 63 132 285 132 170 (436) (29) (163) 172 247 190 3 612 Subtotal 228 72 297 265 862 364 366 (228) 118 620 380 538 327 17 1,262 North America Generation 48 64 102 91 305 240 68 87 22 417 74 272 95 94 535 Utilities 53 47 59 26 185 34 29 58 32 153 50 52 57 38 197 Subtotal 101 111 161 117 490 274 97 145 54 570 124 324 152 132 732 Europe, CIS & Generation 58 24 9 40 131 65 59 13 58 195 64 31 28 91 214 Africa Utilities 25 18 14 42 99 32 26 25 3 86 16 20 20 (6) 50 Subtotal 83 42 23 82 230 97 85 38 61 281 80 51 48 85 264 Asia & the Middle East Generation 40 34 29 25 128 23 30 25 2 80 20 36 23 7 86 Other (145) (153) (144) (177) (619) (173) (133) (143) (174) (623) (195) (163) (154) (294) (806) Total 307 106 366 312 1,091 585 445 (163) 61 928 409 786 396 (53) 1,538 Minority Interest Expense 1Q 2Q 3Q 4Q 2005 1Q 2Q 3Q 4Q 2006 1Q 2Q 3Q 4Q 2007 Latin America Generation $ (33) $ (37) $ (66) $ (52) $ (188) $ (53) $ (63) $ (63) $ (45) $ (224) $ (62) $ (65) $ (53) $ 119 $ (61) Utilities (44) 50 6 (59) (47) (3) (86) (107) 26 (170) (67) (163) (87) 2 (315) Subtotal (77) 13 (60) (111) (235) (56) (149) (170) (19) (394) (129) (228) (140) 121 (376) North America Generation 1 (1) (3) 3 - (1) (2) (1) - (4) - (2) (3) 1 (4) Utilities - - - - - - - - - - - - - - - Subtotal 1 (1) (3) 3 - (1) (2) (1) - (4) - (2) (3) 1 (4) Europe, CIS & Generation (1) - - - (1) (1) - - (1) (2) (1) - (1) (1) (3) Africa Utilities (5) (6) (3) (11) (25) (7) (4) (5) (7) (23) (3) (2) (5) 1 (9) Subtotal (6) (6) (3) (11) (26) (8) (4) (5) (8) (25) (4) (2) (6) - (12) Asia & the Middle East Generation (18) (16) (14) (11) (59) (10) (14) (12) (8) (44) (10) (17) (14) (5) (46) Other - - (6) 7 1 - - 1 3 4 2 1 - 1 4 Total (100) (10) (86) (123) (319) (75) (169) (187) (32) (463) (141) (248) (163) 118 (434)
  • 7. Segment Data Distributions from Subsidiaries 1Q 2Q 3Q 4Q 2005 1Q 2Q 3Q 4Q 2006 1Q 2Q 3Q 4Q 2007 Latin America Generation $ 3 $ 16 $ 11 $ 53 $ 83 $ 1 $ 38 $ 1 $ 102 $ 142 $ 3 $ 11 $ 24 $ 54 $ 92 Utilities 22 - 29 72 123 19 - 106 17 142 - 118 57 41 216 Subtotal 25 16 40 125 206 20 38 107 119 284 3 129 81 95 308 North America Generation 86 51 109 66 312 82 19 168 63 332 85 30 142 40 297 Utilities 47 52 55 54 208 - 65 34 43 142 - 74 42 54 170 Subtotal 133 103 164 120 520 82 84 202 106 474 85 104 184 94 467 Europe, CIS & Generation 7 30 17 29 83 15 16 27 14 72 45 13 45 75 178 Africa Utilities 1 1 - 27 29 - 10 5 10 25 1 - - 31 32 Subtotal 8 31 17 56 112 15 26 32 24 97 46 13 45 106 210 Asia & the Middle East Generation 29 13 40 48 130 14 25 1 46 86 - 8 35 29 72 Other - 7 13 5 25 - 4 10 16 30 3 5 16 18 42 Total 195 170 274 354 993 131 177 352 311 971 137 259 361 342 1,099
  • 8. Top 10 Subsidiary Distributions In millions, for the years ended December 31 2004 2005 2006 2007 IPALCO $177 IPALCO $208 Eastern Energy $162 IPALCO $170 Gener 151 EDC 107 IPALCO 142 New York 122 EDC 1 EDC 1 Eastern Energy 94 Eastern Energy 85 100 97 EDC 1 77 Shady Point 57 Gener 81 Brasiliana 90 Shady Point 76 Hawaii 46 Hungary 37 Kilroot 69 Hawaii 47 Ras Laffan 45 Hawaii 35 Hawaii 49 Ebute 33 Gener 36 Alicura 33 Cartagena 42 Southland 28 Alicura 30 CAESS & EEO 31 Shady Point 38 Barka 21 Southland 29 Shady Point 30 Ekibastuz 37 CTSN (San Nicolas) 21 Global Insurance 25 Deepwater 29 Gener 36 Subtotal - Top 10 $725 Subtotal - Top 10 $668 Subtotal - Top 10 $680 Subtotal - Top 10 $750 Other Businesses 279 Other Businesses 325 Other Businesses 291 Other Businesses 349 Total $1,004 Total $993 Total $971 Total $1,099 1 A business AES sold in May 2007.
  • 9. Reconciliation of Non-GAAP Financial Measures In millions, except per share data, for the years ended December 31 2005 2006 2007 (Restated) (Restated) Reconciliation of Maintenance Capital Expenditures $635 $867 $878 Capital Expenditures Growth Capital Expenditures 192 645 1,582 Capital Expenditures $827 $1,512 $2,460 Reconciliation of Net Cash Provided by Operating Activities $2,220 $2,351 $2,357 1 Free Cash Flow Maintenance Capital Expenditures 635 867 878 Free Cash Flow $1,585 $1,484 $1,479 Reconciliation of Adjusted Diluted Earnings Per Share from Continuing Operations $0.56 $0.27 $0.73 2 Earnings Per Share FAS 133 Mark to Market (Gains) Losses 0.03 (0.05) 0.03 Currency Transaction (Gains) Losses 0.05 0.01 - Net Asset (Gains) Losses & Impairments 0.00 0.68 0.18 Debt Retirement (Gains) Losses 0.00 0.03 0.08 Adjusted Earnings Per Share $0.64 $0.94 $1.02 Reconciliation of Subsidiary Distributions to Parent $993 $971 $1,099 3 Subsidiary Distributions Returns of Capital to Parent 57 72 106 Total Subsidiary Distributions & Returns of Capital to Parent $1,050 $1,043 $1,205 1 Free cash flow is defined as net cash from operating activities less maintenance capital expenditures (including environmental capital expenditures). 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 Adjusted earnings per share is defined as diluted earnings per share from continuing operations excluding gains or losses associated with (a) mark-to-market amounts related to FAS 133 derivative transactions, (b) foreign currency transaction impacts on the net monetary position related to Brazil and Argentina, (c) significant asset gains or losses due to disposition transactions and impairments, and (d) costs related to early retirement of debt. 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 associated with mark-to-market gains or losses related to certain derivative transactions, currency gains and losses, periodic strategic decisions to dispose of certain assets which may influence results in a given period, and the early retirement of debt. 3 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.
  • 10. Selected Financial Data In millions, except per share data, for the years ended December 31 Statement of Operations Data 2007 2006 2005 2004 2003 (Restated) (Restated) (Restated) (Restated) Revenues $13,588 $11,576 $10,247 $8,728 $7,676 Income from Continuing Operations 495 176 365 183 177 Discontinued Operations, Net of Tax (590) 50 188 132 (681) Extraordinary Items, Net of Tax - 21 - - - Cumulative Effect of Change in Accounting Principle, Net of Tax - - (4) - 41 Net (Loss) Income Available to Common Stockholders ($95) $247 $549 $315 ($463) Basic (Loss) Income from Continuing Operations, Net of Tax $0.74 $0.27 $0.56 $0.29 $0.30 Earnings Per Discontinued Operations, Net of Tax (0.88) 0.07 0.29 0.20 (1.15) Share Extraordinary Items, Net of Tax - 0.03 - - - Cumulative Effect of Change in Accounting Principle, Net of Tax - - (0.01) - 0.07 Basic (Loss) Earnings Per Share ($0.14) $0.37 $0.84 $0.49 ($0.78) Diluted (Loss) Income from Continuing Operations, Net of Tax $0.73 $0.27 $0.56 $0.29 $0.30 Earnings Per Discontinued Operations, Net of Tax (0.87) 0.07 0.28 0.20 (1.14) Share Extraordinary Items, Net of Tax - 0.03 - - - Cumulative Effect of Change in Accounting Principle, Net of Tax - - (0.01) - 0.07 Diluted (Loss) Earnings Per Share ($0.14) $0.37 $0.83 $0.49 ($0.77) Balance Sheet Data 2007 2006 2005 2004 2003 (Restated) (Restated) (Restated) (Restated) Total Assets $34,453 $31,274 $29,025 $28,449 $29,145 Non-Recourse Debt (Long-Term) $11,297 $9,840 $10,308 $10,571 $10,038 Non-Recourse Debt (Long-Term) - Discontinued Operations $33 $342 $467 $742 $719 Recourse Debt (Long-Term) $5,332 $4,790 $4,682 $5,010 $5,862 Accumulated Deficit ($1,241) ($1,093) ($1,340) ($1,889) ($2,204) Stockholders' Equity (Deficit) $3,164 $2,979 $1,583 $997 ($99)
  • 11. Revenues(1) $ in millions $16,000 $13,588 $14,000 $11,576 $12,000 $10,247 $10,000 $8,000 $6,000 $4,000 $2,000 $0 2005 2006 2007 (1) 2005 & 2006 Restated.
  • 12. Gross Margin(1) $ in millions $3,500 $3,434 $3,409 $3,400 $3,300 $3,200 $3,100 $3,000 $2,870 $2,900 $2,800 $2,700 $2,600 $2,500 2005 2006 2007 (1) 2005 & 2006 Restated.
  • 13. Income Before Income Taxes, Equity in Earnings of Affiliates & Minority Interest(1)(2) $ in millions $1,800 $1,538 $1,600 $1,400 $1,200 $1,091 $928 $1,000 $800 $600 $400 $200 $0 2005 2006 2007 (1) 2005 & 2006 Restated. (2) 2006 results include Brazil restructuring impacts that are unfavorable to income before taxes, equity in earnings & minority interest by ($509) million and unfavorable to diluted EPS from continuing operations by ($0.76) per share.
  • 14. Diluted Earnings Per Share(1) $ per share $1.00 $0.83 $0.80 $0.60 $0.37 $0.40 $0.20 $0.00 2005 2006 2007 ($0.14) ($0.20) (1) 2005 & 2006 Restated.
  • 15. Adjusted EPS(1)(2) $ per share $1.20 $1.02 $1.00 $0.94 $0.80 $0.64 $0.60 $0.40 $0.20 $0.00 2005 2006 2007 (1) 2005 & 2006 based on restated diluted earnings per share. (2) A non-GAAP financial measure. See quot;Reconciliation of Non-GAAP Financial Measuresquot; for definition.
  • 16. Net Cash Provided by Operating Activities and Free Cash Flow (1)(2)(3) $ in millions $2,400 $2,206 $2,087 $1,878 $599 $1,800 $632 $538 $235 $165 $64 $1,200 $1,372 $1,290 $1,276 $600 $0 2005 2006 2007 Free Cash Flow Environmental Capex Maintenance Capex (1) 2005 & 2006 Restated. (2) A non-GAAP financial measure. See quot;Reconciliation of Non-GAAP Financial Measuresquot; for definition. (3) Excludes results from EDC, a Latin America utility business that was sold in May 2007.
  • 17. Reconciliation of Cash Flow In millions, except per share data, for the years ended December 31 2005 2006 2007 (Restated) (Restated) Net Cash Provided by Operating Activities $2,220 $2,351 $2,357 EDC Impact 1 (342) (264) (151) Net Cash Provided by Operating Activities, Excluding EDC $1,878 $2,087 $2,206 Maintenance Capital Expenditures $571 $867 $878 Maintenance Capital Expenditures, EDC 1 33 70 44 Free Cash Flow 2 $1,649 $1,484 $1,479 1, 2 Free Cash Flow, Excluding EDC $1,340 $1,290 $1,372 1 Unaudited. 2 A non-GAAP financial measure. See quot;Reconciliation of Non-GAAP Financial Measuresquot; for definition.
  • 18. Non-Recourse Debt $ in millions $15,000 $12,439 $11,664 $12,000 $11,242 $9,000 $6,000 $3,000 $0 2005 2006 2007
  • 19. Recourse Debt $ in millions $6,000 $5,555 $4,882 $4,790 $4,500 $3,000 $1,500 $0 2005 2006 2007

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