08 08-17 second quarter 2017 financial review final

The AES Corporation
Second Quarter 2017 Financial Review
August 8, 2017

2Contains Forward-Looking Statements
Certain statements in the following presentation regarding AES’ business operations may constitute
“forward-looking statements.” 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, accurate projections of future interest
rates, commodity prices and foreign currency pricing, continued normal or better levels of operating
performance and electricity demand 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 from investments at investment levels and rates of return
consistent with prior experience. For additional assumptions see Slide 55 and the Appendix to this
presentation. 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 including but not limited to
the risks discussed under Item 1A “Risk Factors” and Item 7: “Management’s Discussion & Analysis” in
AES’ 2016 Annual Report on Form 10-K, as well as our other SEC filings. AES undertakes no obligation
to update or revise any forward-looking statements, whether as a result of new information, future
events or otherwise.
Reconciliation to U.S. GAAP Financial Information
The following presentation includes certain “non-GAAP financial measures” as defined in Regulation G
under the Securities Exchange Act of 1934, as amended. Schedules are included herein that reconcile
the non-GAAP financial measures included in the following presentation to the most directly comparable
financial measures calculated and presented in accordance with U.S. GAAP.
Safe Harbor Disclosure

l Adjusted EPS1 of $0.25, an increase of $0.08, largely driven by higher availability and capital
allocation decisions
l Reaffirming 2017 guidance and expectations through 2020
l Evaluating path forward for Alto Maipo hydro project under construction in Chile
l Successfully completed the expansion of our DPP gas-fired plant in the Dominican Republic
l Secured $2 billion in non-recourse financing on favorable terms and broke ground on our 1.4 GW
Southland re-powering project in California
l With the exception of Alto Maipo, our 4.7 GW under construction are progressing well and remain
on track to be completed through 2020
l Closed acquisition of sPower, the largest independent solar developer in the United States, to
increase our long-term contracted, U.S. Dollar-denominated, renewable portfolio
l To take advantage of our leadership position in energy storage, we announced a 50/50 joint venture
with Siemens to create a global energy storage technology and services company
l On track to achieve our $400 million per year cost reduction and revenue enhancement program
1. A non-GAAP financial measure. See Appendix for definition.
Q2 2017 Financial Review Call

l As disclosed in May, construction difficulties resulted in projected cost overruns of up to
22% ($460 million) of total project cost
l Slower than anticipated productivity by construction contractors since last call
„ Alto Maipo terminated one of the project’s contractors for performance reasons
l In discussion with potential replacement construction contractors and non-recourse
lenders
„ Alto Maipo looking for modified construction contracts and financial flexibility
l AES’ total exposure to the project is approximately $415 million, 87% of which has
already been invested
l Will be disciplined when it comes to evaluating any incremental investment from AES
Gener into Alto Maipo
l Do not expect any material impact on our 2017 guidance and expectations through
2020
Alto Maipo in Chile

122 MW CCGT Expansion
DPP in the Dominican Republic
l Recently completed 122 MW
expansion of existing DPP plant,
for total capacity of 358 MW
l One of the lowest cost generators
in the Dominican Republic
l New capacity contracted under a
long-term, U.S. Dollar-
denominated PPA
l Completed on budget for total
capex of $260 million, funded
through debt capacity at AES
Dominicana

671 MW CCGT, COD1: 1H 2018
Eagle Valley in Indiana
l Remain confident that the project
will achieve COD1 in 1H 2018
l EPC contractor, CBI2, has created
positive momentum by
subcontracting some critical work
in an effort to achieve substantial
completion by year-end 2017
„ Approximately 1,000 workers on-
site
1. Commercial Operations Date.
2. Chicago Bridge and Iron Company.

1,384 MW Gas and Energy Storage,
COD1: 1H 2020 (Gas) and 1H 2021 (Energy Storage)
Southland Repowering in California
l Closed $2 billion in long-term, non-
recourse financing at 4.5%
„ Demonstrates strength of the
project, which has 20-year PPAs
with Southern California Edison
„ Largest non-recourse financing
including a battery-based energy
storage project
l Gas-fired capacity will be
constructed by Kiewit
„ One of North America’s largest
engineering and construction
contractors
„ Successful track record of
completing similar CCGT projects in
California
1. Commercial Operations Date.

4,659 MW Currently Under Construction
Coming On-Line Through 2020
1. Includes: 79 MW sPower (US-CA), 20 MW Dominican Energy Storage (Dominican Republic) and 19 MW Distributed Energy (US).
2. Includes: 1,320 MW OPGC 2 (India), 671 MW Eagle Valley CCGT (US), 380 MW Colón (Panama) and 20 MW Distributed Energy (US).
3. Includes: 531 MW Alto Maipo (Chile) and 335 MW Masinloc 2 (Philippines).
4. Includes: 1,284 MW Southland Re-Powering (US-CA).
On Track to Complete Projects Under Construction
4,659
1181
2,3912
8663
1,2844
YTG 2017 2018 2019 2020 Total

Wind and Solar: Acquired 1.8 GW and
Potential to Add at Least 1.5 GW Through 2020
Note: Solar capacity shown in DC and wind capacity shown in AC.
1. Includes: 1,287 MW sPower (solar, US-CA), 386 MW Alto Sertão (wind, Brazil), 75 MW Boa Hora (solar, Brazil) and 28 MW Na Pua Makani (wind, Hawaii).
Significant Progress Toward Repositioning Our Portfolio
1,673
1,7761
400
926
500
2017 2018 2019 2020 Total
Acquired Signed PPAs Exclusive Negotiations Advanced Development
525
570
834
3,602

New Global Energy Storage Technology and Services Company
Joining Forces with Siemens to Create Fluence
l Worldwide installed base for
energy storage projected to grow
to 28 GW over next five years
„ Well-positioned to take advantage
and see it as an upside to our
outlook
l New 50/50 joint venture unites
scale, experience and resources of
AES and Siemens, to develop new
storage solutions and services,
reaching customers in more than
160 countries
„ Expected to close in the fourth
quarter of this year, following
regulatory approvals

$ in Millions
1. Cost reductions reflected in General and Administrative Expense (G&A), as well as Cost of Sales. Some of the previously reported 2012 and 2013 G&A
Expense related to administrative costs at our SBUs has been reclassified to Cost of Sales.
$250
$400
$50
$50
$25
$25
2012-2016
Total
2017
Estimate
2018
Estimate
2019
Estimate
2020
Estimate
Total
Performance Excellence1
On Track to Achieve $400 Run Rate through 2020

l Q2 2017 results
„ Adjusted EPS1
„ Consolidated Free Cash Flow1 and Adjusted PTC1 by Strategic
Business Unit (SBU)
l 2017 Parent capital allocation plan
l 2017 Guidance and 2018-2020 expectations
1. A non-GAAP financial measure. See Appendix for definition.
Q2 2017 Financial Review

$0.17
$0.25$0.08
($0.01)
$0.01
Q2 2016 SBUs/Corp Tax Capital Allocation Q2 2017
1. A non-GAAP financial measure. See Appendix for definition and reconciliation to the nearest GAAP measure.
Q2 2017 Adjusted EPS1 Increased $0.08
l MCAC
l Argentina
l UK
l 2016: 29%
l 2017: 32%

$ in Millions
Consolidated FCF1 Decreased $448;
Adjusted PTC1 Increased $83
Q2 Financial Results
l Margins improved primarily due to
higher availability in MCAC and
Argentina
l Adjusted PTC1 also reflects lower
Parent interest expense
l Lower Consolidated FCF1 also reflects
the collection of overdue receivables at
Maritza in Bulgaria in 2016, and higher
working capital requirements in Brazil
$137
$13
$160
$243
$0
$100
$200
$300
$400
$500
$600
Q2 2016 Q2 2017 Q2 2016 Q2 2017
FCF Attributable to NCI
Consolidated
FCF1
Adjusted
PTC1
1
$554
$106

$ in Millions
Q2 Financial Results: US SBU
l Margins declined primarily due to an
accrual associated with the 2016 rate
order at IPL in Indiana and a reversion
to prior ESP rates at DPL in Ohio
l Higher Adjusted PTC1 also reflects
growth in distributed energy business
higher working capital requirements at
DPL
$6
($2)
$58 $63
-$10
$10
$30
$50
$70
$90
$110
$130
$150
Q2 2016 Q2 2017 Q2 2016 Q2 2017
Consolidated
FCF1
Adjusted
PTC1
1
$123
$104

$ in Millions
Consolidated FCF1 Increased $2;
Adjusted PTC1 Decreased $2
Q2 Financial Results: Andes SBU
improved availability in Argentina
l Lower Adjusted PTC1 also reflects
lower capitalized interest expense on
completed construction projects in
Chile and lower interest income in
Argentina
l Higher Consolidated FCF1 also reflects
lower tax payments at Chivor in
Colombia, offset by lower VAT refunds
and higher tax payments at Gener in
Chile
$21 $21
$84 $82
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
Q2 2016 Q2 2017 Q2 2016 Q2 2017
Consolidated
FCF1
Adjusted
PTC1
1
$77 $79

$ in Millions
Q2 Financial Results: Brazil SBU
l Margins were flat
l Lower Consolidated FCF1 reflects the
impact from the recovery of high
purchased power costs in 2016 at
Eletropaulo, and the sale of Sul $77
($45)
$7 $13
-$90
-$40
$10
$60
$110
$160
Q2 2016 Q2 2017 Q2 2016 Q2 2017
Consolidated
FCF1
Adjusted
PTC1
1
$125
($53)

$ in Millions
Q2 Financial Results: MCAC SBU
higher availability in the Dominican
Republic, Mexico and Puerto Rico
$6
($2)
$75
$99
-$20
$0
$20
$40
$60
$80
$100
$120
Q2 2016 Q2 2017 Q2 2016 Q2 2017
Consolidated
FCF1
Adjusted
PTC1
1
-
$28

$ in Millions
Q2 Financial Results: Europe SBU
higher capacity margins in the United
Kingdom
the collection of overdue receivables in
2016 at Maritza in Bulgaria
$9
$13 $34
$54
$0
$50
$100
$150
$200
$250
$300
$350
$400
Q2 2016 Q2 2017 Q2 2016 Q2 2017
Consolidated
FCF1
Adjusted
PTC1
1
$352
$59

$ in Millions
Adjusted PTC1 Flat
Q2 Financial Results: Asia SBU
l Margins were flat
l Higher Consolidated FCF1 reflects the
timing of fuel payments at Masinloc in
the Philippines
$19
$28
$26 $26
$0
$10
$20
$30
$40
$50
$60
Q2 2016 Q2 2017 Q2 2016 Q2 2017
Consolidated
FCF1
Adjusted
PTC1
1
$38
$53

Regulatory Developments in Ohio – Dayton Power & Light
(DP&L)
l In March, reached settlement agreement with PUCO Staff and various
intervenors on Electric Security Plan (ESP)
„ Distribution Modernization Rider of $105 million/year over three years with potential
for two-year extension
„ Commenced sale process for Miami Fort, Zimmer and Conesville (1 GW)
l Post-hearing brief concluded May 15, 2017
l PUCO approval expected Q3 2017
l Committed to:
„ Exiting 100% of coal capacity by June 2018 (2.1 GW)
„ Exploring strategic options for remaining generation (1 GW peakers)
„ Reducing debt
Taking Active Steps Towards DPL Becoming a Stable and Growing T&D
Business

Since 2011, Reduced Parent Debt by 32% or $2.1 Billion
($ in Millions)
Improving Our Debt Profile
$6,515
$4,423
($530)
($308)
($419) ($240)
($301)
($294)
Total Parent
Debt as of
December 31,
2011
2012 2013 2014 2015 2016 2017 Total Parent
Debt as of
June 30, 2017

$ in Millions
Discretionary Cash – Sources
($1,495-$1,595)
Discretionary Cash – Uses
($1,495-$1,595)
1. Includes: completed $300 million (Sul, Brazil) and $500 million asset sale proceeds target.
2017 Parent Capital Allocation Plan
$100
$575-
$675
$1,495-
$1,595
$800
$20
Beginning
Cash
Asset Sales
Proceeds
Parent FCF Return of
Capital
Total
Discretionary
Cash
$50 $53-
$153
$317
$350
$382
$343
21
Target Closing
Cash Balance
Shareholder
Dividend
Unallocated
Discretionary Cash
Investments in
Subsidiaries
Maximizing Discretionary Cash to Increase Risk-Adjusted Returns
for Shareholders
Debt
Prepayment
sPower
Acquisition

2017-2020; $ in Millions
1. Includes: $100 million beginning cash; $800 million asset sale proceeds; and Parent Free Cash Flow of $2,900 million, which is based on the mid-point of
2017 guidance of $625 million, growing at the mid-point of our 8%-10% average annual growth rate through 2020. Does not include additional asset sale
proceeds.
2. Assumes constant payment of $0.12 per share each quarter on 662 million shares outstanding.
3. Includes investments in renewable development projects in 2018-2020 shown on Slide 9.
Allocating $3.8 Billion1 Discretionary Cash Through 2020 to
Maximize Risk-Adjusted Returns
$1,090
$1,270
$700
$382
$358
Unallocated
Discretionary Cash
l 8%-10% dividend
growth
l Modest Parent de-
levering
l Investments in
natural gas and
renewable projects3
2017 Parent Debt
Prepayment
sPower
Acquisition
Committed
Investments in
Subsidiaries
Shareholder
Dividend2

$ in Millions, Except Per Share Amounts
Reaffirming Expectations Through 2020
FY 2016 Guidance
& Expectations
FY 2017 Guidance 2020 Expectations
Adjusted EPS1 $0.95-$1.05 $1.00-$1.10
8%-10% growth off
mid-point of 2016
guidance
Consolidated Net Cash Provided
by Operating Activities
$2,000-$2,900 $2,000-$2,800 N/A
Consolidated Free Cash Flow1 $1,300-$2,200 $1,400-$2,000
8%-10% growth off
mid-point of 2016
guidance
l 2017 guidance based on foreign currency and commodity forward curves as of June
30, 2017

l Year-to-date results in line with expectations
l Resolution of Alto Maipo expected before year-end
l To deliver attractive growth, on track to complete remaining construction
projects, as well as revenue enhancement and cost reduction initiatives
l Repositioning our portfolio by adding renewables and natural gas with long-
term, U.S. Dollar-denominated contracts
l Continuing to reduce leverage to achieve investment grade metrics by 2020
Conclusion
Reaffirming 8%-10% Average Annual Growth
in all Key Financial Metrics Through 2020

l YTD Adjusted EPS1 Slide 28
l Q2 and YTD Adjusted EPS1 Roll-Up Slide 29
l YTD Financial Results Slides 30-36
l Listed Subs & Public Filers Slide 37
l SBU Modeling Disclosures Slides 38-39
l DPL Inc. Modeling Disclosures Slide 40
l DP&L and DPL Inc. Debt Maturities Slide 41
l Parent Only Cash Flow Slides 42-44
l Currencies and Commodities Slides 45-47
l AES Modeling Disclosures Slide 48
l Construction Program Slides 49
l Reconciliations Slides 50-54
l Assumptions & Definitions Slides 55-56
1. A non-GAAP financial measure.
Appendix

$0.32
$0.42
$0.05
$0.02
$0.02 $0.01
YTD 2016 SBUs/Corp FX Tax Capital
Allocation
YTD 2017
1. A non-GAAP financial measure. See Slide 52 for reconciliation to the nearest GAAP measure and “definitions”.
YTD 2017 Adjusted EPS1 Increased $0.10

Q2 2017 Q2 2016 Variance YTD 2017 YTD 2016 Variance
Adjusted PTC1
US $63 $58 $5 $111 $143 ($32)
Andes $82 $84 ($2) $170 $145 $25
Brazil $13 $7 $6 $52 $12 $40
MCAC $99 $75 $24 $158 $123 $35
Europe $54 $34 $20 $109 $103 $6
Asia $26 $26 - $48 $48 -
Total SBUs $337 $284 $53 $648 $574 $74
Corp/Other ($94) ($124) $30 ($215) ($229) $14
Total AES Adjusted
PTC1,2 $243 $160 $83 $433 $345 $88
Adjusted Effective Tax Rate 32% 29% 36% 39%
Diluted Share Count 662 662
ADJUSTED EPS1 $0.25 $0.17 $0.08 $0.42 $0.32 $0.10
1. A non-GAAP financial measure. See Slides 51 and 52 for reconciliation to the nearest GAAP measure and “definitions”.
2. Includes $6 million and $8 million of after-tax equity in earnings for Q2 2017 and Q2 2016, respectively, and $12 million and $14 million for YTD 2017 and
YTD 2016, respectively.
Q2 and YTD 2017 Adjusted EPS1 Roll-Up

$ in Millions
1. A non-GAAP financial measure. See Slides 50 and 52 for reconciliation to the nearest GAAP measure and “definitions”.
YTD Financial Results
l Margins improved primarily in MCAC,
Andes and Brazil
l Higher Adjusted PTC1 also reflects the
successful settlement of a legal dispute
in Brazil
the receipt of overdue receivables at
Maritza in Bulgaria in 2016, and higher
working capital requirements in Brazil
$374
$291
$345
$433
$0
$200
$400
$600
$800
$1,000
$1,200
YTD
2016
YTD
2017
YTD
2016
YTD
2017
Consolidated
FCF1
Adjusted
PTC1
1
$1,044
$652

$ in Millions
Adjusted PTC1 Decreased $32
1. A non-GAAP financial measure. See “definitions”.
YTD Financial Results: US SBU
l Margins declined primarily due to an
accrual associated with the 2016 rate
order at IPL and reversion to prior ESP
rates at DPL in Ohio
l Lower Adjusted PTC1 also reflects as a
result of a contract termination in 2016,
related to DPL’s competitive retail
business
higher purchased power and fuel costs
at DPL
$16
$14
$143
$111
$0
$50
$100
$150
$200
$250
$300
YTD
2016
YTD
2017
YTD
2016
YTD
2017
Consolidated
FCF1
Adjusted
PTC1
1
$266
$196

$ in Millions
YTD Financial Results: Andes SBU
l Margins improved due to higher
availability in Argentina and higher
reservoir levels and generation in
Colombia
the non-cash impact on margins from
environmental tax accruals and higher
depreciation in Chile
$37
$65 $145
$170
$0
$50
$100
$150
$200
YTD
2016
YTD
2017
YTD
2016
YTD
2017
$97
$186
Consolidated
FCF1
Adjusted
PTC1
1

$ in Millions
YTD Financial Results: Brazil SBU
l Margins improved due to higher spot
sales at Tietê, and higher tariffs at
Eletropaulo
l Higher Adjusted PTC1 also reflects the
successful settlement of a legal dispute
at Uruguaiana
the impact from the recovery of high
purchased power costs in 2016 at
Eletropaulo
$239
$117
$12
$52
$0
$50
$100
$150
$200
$250
$300
$350
$400
YTD
2016
YTD
2017
YTD
2016
YTD
2017
Consolidated
FCF1
Adjusted
PTC1
1
$321
$165

$ in Millions
YTD Financial Results: MCAC SBU
higher availability in Mexico and higher
energy sales in the Dominican
Republic
lower working capital requirements in
the Dominican Republic and Puerto
Rico, primarily related to the timing of
collections and fuel payments
$6
$6
$123
$158
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
YTD
2016
YTD
2017
YTD
2016
YTD
2017
Consolidated
FCF1
Adjusted
PTC1
1
$13
$93

$ in Millions
YTD Financial Results: Europe SBU
higher capacity margins in the United
Kingdom
the collection of overdue receivables at
Maritza in Bulgaria in 2016
$14
$20 $103 $109
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
YTD
2016
YTD
2017
YTD
2016
YTD
2017
Consolidated
FCF1
Adjusted
PTC1
1
$433
$145

$ in Millions
Adjusted PTC1 Flat
YTD Financial Results: Asia SBU
l Margins were flat
l Higher Consolidated FCF1 reflects
lower working capital requirements at
Masinloc in the Philippines due to the
timing of fuel payments
$63
$69
$48 $48
$0
$20
$40
$60
$80
$100
$120
$140
$160
YTD
2016
YTD
2017
YTD
2016
YTD
2017
Consolidated
FCF1
Adjusted
PTC1
1
$125
$134

AES SBU/Reporting Country US Andes/Chile Brazil
AES Company IPL DPL AES Gener2 Eletropaulo2 Tietê2
$ in Millions
Q2
2017
Q2
2016
Q2
2017
Q2
2016
Q2
2017
Q2
2016
Q2
2017
Q2
2016
Q2
2017
Q2
2016
US GAAP RECONCILIATION
AES Business Unit Adjusted Earnings1,3 $15 $21 $5 $4 $32 $48 $1 ($2) $8 $7
Adjusted PTC1,3 Public Filer (Stand-alone) $23 $31 $8 $7 $54 $72 $2 ($2) $12 $10
Impact of AES Differences from Public Filings - - - $1 - - - - - -
AES Business Unit Adjusted PTC1 $23 $31 $8 $8 $54 $72 $2 ($2) $12 $10
Unrealized Derivatives (Losses)/Gains - - $2 $4 ($10) $1 - - - -
Unrealized Foreign Currency Transaction Losses - - - - - - - - - $1
Impairment Losses - - - ($235) - - - - - -
Disposition/Acquisition Gains - - ($1) - - - - - - -
Loss on Extinguishment of Debt - - - - ($2) $3 - - ($1) -
Non-Controlling Interest before Tax $12 $13 - - $24 $36 $11 ($9) $36 $36
Income Tax Benefit/(Expenses) ($11) ($14) ($8) $87 ($25) ($38) ($5) $3 ($14) ($15)
US GAAP Income/(Loss) from Continuing
Operations4 $24 $30 $1 ($136) $41 $74 $8 ($8) $33 $32
Adjustment to Depreciation & Amortization5 ($10) ($10) ($7) ($7) ($3) ($3)
Adjustment to Regulatory Liabilities & Assets - - - - - -
Adjustment to Taxes6 ($3) $8 ($2) ($5) - $1
Other Adjustments $16 ($6) $10 $22 ($2) ($1)
IFRS Net Income $44 $66 $9 $2 $28 $29
BRL-USD Implied Exchange Rate 3.3012 1.8735 3.2104 3.5316
This table provides financial data of those operating subsidiaries of AES that are publicly listed or have publicly filed financial information on a stand-alone basis. The table provides
a reconciliation of the subsidiary’s Adjusted PTC as it is included in AES consolidated Adjusted PTC with the subsidiary’s income/(loss) from continuing operations under US GAAP
and the subsidiary’s locally IFRS reported net income, if applicable. Readers should consult the subsidiary’s publicly filed reports for further details of such subsidiary’s results of
operations.
1. A non-GAAP financial measure. Reconciliation provided above. See “definitions” for descriptions of adjustments.
2. The listed subsidiary is a public filer in its home country and reports its financial results locally under IFRS. Accordingly certain adjustments presented under IFRS Reconciliation are required to account
for differences between US GAAP and local IFRS standards.
3. Total Adjusted PTC, US GAAP Income from continuing operations and intervening adjustments are calculated before the elimination of inter-segment transactions such as revenue and expenses related
to the transfer of electricity from AES generation plants to AES utilities within Brazil.
4. Represents the income/(loss) from continuing operations of the subsidiary included in the consolidated operating results of AES under US GAAP.
5. Adjustment to depreciation and amortization expense represents additional expense required due primarily to basis differences of long-lived and intangible assets under IFRS for each reporting period.
6. Adjustment to taxes represents mainly differences relating to the goodwill tax benefit resulting from the restructuring of Brazilian subsidiaries that increased tax basis in long-term assets (Eletropaulo) and
depreciation for the difference in cost basis of PP&E (Eletropaulo and Tietê).
Q2 2017 Adjusted PTC1: Reconciliation to Public Financials of
Listed Subsidiaries & Public Filers

Adjusted
PTC1
Interest Expense Interest Income Depreciation & Amortization
Consolidated
Attributable
to NCI
Ownership-
Adjusted
Consolidated
Attributable
to NCI
Ownership-
Adjusted
Consolidated
Attributable
to NCI
Ownership-
Adjusted
US $63 $62 ($8) $54 - - - $109 ($15) $94
DPL $8 $27 - $27 - - - $26 - $26
IPL $23 $25 ($7) $18 - - - $51 ($15) $36
Andes $82 $52 ($17) $35 $12 ($1) $11 $62 ($23) $39
AES Gener $54 $44 ($17) $27 $2 ($1) $1 $60 ($23) $37
Brazil $13 $68 ($55) $13 $43 ($34) $9 $43 ($35) $8
Tietê $12 $10 ($8) $2 $6 ($5) $1 $10 ($8) $2
Eletropaulo $2 $56 ($47) $9 $34 ($29) $5 $33 ($27) $6
MCAC $99 $41 ($7) $34 $5 ($1) $4 $43 ($10) $33
Europe $54 $15 ($4) $11 - - - $23 ($4) $19
Asia $26 $26 ($13) $13 $32 ($16) $16 $7 ($3) $4
Subtotal $337 $264 ($104) $160 $92 ($52) $40 $287 ($90) $197
Corp/Other ($94) $69 - $69 $1 - $1 $3 - $3
TOTAL $243 $333 ($104) $229 $93 ($52) $41 $290 ($90) $200
$ in Millions
1. A non-GAAP financial measure. See reconciliation to the nearest GAAP measure on Slide 52 and “definitions”.
Q2 2017 Modeling Disclosures

Total Debt
Cash & Cash Equivalents, Restricted Cash, Short-Term Investments,
Debt Service Reserves & Other Deposits
Consolidated Attributable to NCI Ownership-Adjusted Consolidated Attributable to NCI Ownership-Adjusted
US $5,215 ($784) $4,431 $273 ($9) $264
DPL $1,838 - $1,838 $36 - $36
IPL $2,609 ($782) $1,827 $29 ($8) $21
Andes $4,200 ($1,565) $2,635 $472 ($150) $322
AES Gener $3,871 ($1,564) $2,307 $356 ($150) $206
Brazil1 $1,743 ($1,396) $347 $1,049 ($783) $266
Tietê $722 ($547) $175 $480 ($363) $117
Eletropaulo $1,021 ($849) $172 $445 ($370) $75
MCAC $2,625 ($452) $2,173 $419 ($77) $342
Europe $935 ($243) $692 $185 ($41) $144
Asia $1,669 ($818) $851 $197 ($94) $103
Subtotal $16,387 ($5,258) $11,129 $2,595 ($1,154) $1,441
Corp/Other $4,384 - $4,384 $249 - $249
TOTAL $20,771 ($5,258) $15,513 $2,844 ($1,154) $1,690
$ in Millions
1. In addition to total debt, Eletropaulo has $1,124 million of pension plan liabilities. AES owns 17% of Eletropaulo.
Q2 2017 Modeling Disclosures

Balance of Year
2017
Full Year 2018 Full Year 2019
Volume Production (TWh) 4.1 5.6 2.8
% Volume Hedged ~47% ~24% ~11%
Average Hedged Dark Spread ($/MWh) $13.59 $17.41 N/A
EBITDA Generation Business1 ($ in Millions) ~$45 to $50 per year
EBITDA DPL Inc. including Generation and T&D
($ in Millions)
~$275 to $300 per year
Reference Prices2
Henry Hub Natural Gas ($/mmbtu) $3.07 $2.99 $2.85
AEP-Dayton Hub ATC Prices ($/MWh) $29 $30 $29
EBITDA Sensitivities (with Existing Hedges) ($ in Millions)
+10% AD Hub Energy Price ATC ($/MWh) $5 $13 $7
-10% AD Hub Energy Price ATC ($/MWh) ($5) ($10) ($6)
Based on Market Conditions and Hedged Position as of June 30, 2017
Note: Data assume the exit of Stuart and Killen mid-2018, Miami Fort and Zimmer mid-2017, and Conesville in early 2018.
1. Includes capacity premium performance results.
2. Balance of Year 2017 (July-December) and Full Year 2018-2019 based on forward curves as of June 30, 2017.
DPL Inc. Modeling Disclosures

Series Interest
Rate Maturity
Amount
Outstanding as
of June 30,
2017
Amount
Outstanding as
of August 7,
2017
Remarks
2016 FMB Secured B Loan Variable Aug. 2022 $442.8 $442.8 ● Redeemable at 101% of par
2006 OH Air Quality PCBs 4.8% Sept. 2036 $91.9 $70.0 ● Redeemable at par on any day
2015 Direct Purchase Tax
Exempt TL
Variable
Aug. 2020
(put)
$200.0 $200.0 ● Redeemable at par on any day
Total Pollution Control Various Various $291.9 $270.0
Wright-Patterson AFB Note 4.2% Feb. 2061 $17.9 $17.9 ● No redemption option
2015 DP&L Revolver Variable July 2020 - -
● Redeemable at par on any
day
Total DP&L $752.6 $730.7
2018 Term Loan Variable May 2018 $112.5 $112.5 ● No redemption penalty
2019 Senior Unsecured 6.75% Oct. 2019 $200.0 $200.0 ● Callable at make-whole T+50
2021 Senior Unsecured 7.25% Oct. 2021 $780.0 $780.0 ● Callable at make-whole T+50
Total Senior Unsecured Bonds Various Various $980.0 $980.0
2015 DPL Revolver Variable July 2020 - -
● Redeemable at par on any
day
2001 Cap Trust II Securities 8.125% Sept. 2031 $15.6 $15.6 ● Callable at make-whole T+25
Total DPL Inc. $1,108.1 $1,108.1
TOTAL $1,860.7 $1,838.8
$ in Millions
Non-Recourse Debt at DP&L and DPL Inc.

$ in Millions
Q2 YTD
2017 2016 2017 2016
Sources
Total Subsidiary Distributions1 $375 $337 $584 $422
Proceeds from Asset Sales, Net $35 $42 $324 $53
Financing Proceeds, Net $519 $495 $519 $495
Increased/(Decreased) Credit Facility Commitments $300 - $300 -
Issuance of Common Stock, Net - - - -
Total Returns of Capital Distributions & Project Financing Proceeds $66 $14 $66 $31
Beginning Parent Company Liquidity2 $719 $675 $894 $1,137
TOTAL SOURCES $2,014 $1,563 $2,687 $2,138
Uses
Repayments of Debt ($519) ($495) ($860) ($611)
Shareholder Dividend ($79) ($72) ($158) ($145)
Repurchase of Equity - - - ($79)
Investments in Subsidiaries, Net ($84) ($109) ($144) ($248)
Cash for Development, Selling, General & Administrative and Taxes ($54) ($70) ($173) ($154)
Cash Payments for Interest ($86) ($78) ($160) ($152)
Changes in Letters of Credit and Other, Net $28 $24 $28 $14
Ending Parent Company Liquidity2 ($1,220) ($763) ($1,220) ($763)
TOTAL USES ($2,014) ($1,563) ($2,687) ($2,138)
1. See “definitions”.
Parent Sources and Uses of Liquidity

Subsidiary Distributions1 by SBU
Q2 2017 YTD 2017
US $137 $156
Andes $166 $245
Brazil $4 $4
MCAC $16 $16
Europe $24 $130
Asia $24 $25
Corporate & Other2 $4 $8
TOTAL $375 $584
$ in Millions
2. Corporate & Other includes Global Insurance.
Q2 2017 Subsidiary Distributions1
Top Ten Subsidiary Distributions1 by Business
Q2 2017 YTD 2017
Business Amount Business Amount Business Amount Business Amount
Gener (Andes) $91 Altai (Europe) $13
Argentina
(Andes)
$154
Mong Duong
(Asia)
$25
US Holdco
(US)
$81 Itabo (MCAC) $9 Gener (Andes) $91 Elsta (Europe) $17
Argentina
(Andes)
$75
Maritza
(Europe)
$8
Maritza
(Europe)
$82 Altai (Europe) $13
IPALCO (US) $52
Andres
(MCAC)
$6
US Holdco
(US)
$81
Kilroot
(Europe)
$12
Mong Duong
(Asia)
$24 Brazil (Brazil) $4 IPALCO (US) $70 Itabo (MCAC) $9

$ in Millions
3. Qualified Holding Company. See “assumptions”.
Reconciliation of Subsidiary Distributions1 and Parent Liquidity2
Quarter Ended
June 30,
2017
March 31,
2017
December 31,
2016
September 30,
2016
Total Subsidiary Distributions1 to Parent & QHCs3 $375 $209 $426 $265
Total Return of Capital Distributions to Parent & QHCs3 $66 - $12 $4
Total Subsidiary Distributions1 & Returns of Capital to
Parent
$441 $209 $438 $269
Balance as of
June 30,
2017
March 31,
2017
December 31,
2016
September 30,
2016
Cash at Parent & QHCs3 $127 $52 $100 $42
Availability Under Credit Facilities $1,093 $667 $794 $519
Ending Liquidity $1,220 $719 $894 $561

Interest Rates1
Currencies
Commodity
Sensitivity
l 100 bps move in interest rates over year-to-go 2017 is forecasted to have a change in EPS of approximately $0.015
10% appreciation in USD against the
following key currencies is forecasted to
have the following negative EPS impacts:
Balance of Year 2017
Average Rate Sensitivity
Brazilian Real (BRL) 3.38 Less than $0.005
Colombian Peso (COP) 3,089 Less than $0.005
Euro (EUR) 1.15 Less than $0.005
Great British Pound (GBP) 1.31 Less than $0.005
Kazakhstan Tenge (KZT) 341 Less than $0.005
10% increase in commodity prices is
forecasted to have the following EPS
impacts:
Balance of Year 2017
Average Rate Sensitivity
Illinois Basin Coal $34/ton
Less than $0.005, negative correlation
Rotterdam Coal (API 2) $78/ton
NYMEX WTI Crude Oil $46/bbl
Less than $0.005, positive correlation
IPE Brent Crude Oil $49/bbl
NYMEX Henry Hub Natural Gas $3.1/mmbtu
Less than $0.005, negative correlation
UK National Balancing Point Natural Gas £0.4/therm
US Power (DPL) – PJM AD Hub $ 29/MWh $0.005, positive correlation
Note: Guidance provided on August 8, 2017. Sensitivities are provided on a standalone basis, assuming no change in the other factors, to illustrate the magnitude
and direction of changing market factors on AES’ results. Estimates show the impact on year-to-go 2017 Adjusted EPS. Actual results may differ from the
sensitivities provided due to execution of risk management strategies, local market dynamics and operational factors. Full year 2017 guidance is based on
currency and commodity forward curves and forecasts as of June 30, 2017. There are inherent uncertainties in the forecasting process and actual results may
differ from projections. The Company undertakes no obligation to update the guidance presented. Please see Item 1 of the Form 10-Q for a more complete
discussion of this topic. AES has exposure to multiple coal, oil, and natural gas, and power indices; forward curves are provided for representative liquid markets.
Sensitivities are rounded to the nearest $0.005 cent per share.
1. The move is applied to the floating interest rate portfolio balances as of June 30, 2017.
2017 Guidance Estimated Sensitivities

2017 Adjusted PTC1
by Currency Exposure
2017 Full Year FX Sensitivity2,3
by SBU (Cents Per Share)
1. Before Corporate Charges. A non-GAAP financial measure. See “definitions”.
2. Sensitivity represents full year 2017 exposure to a 10% appreciation of USD relative to foreign currency as of December 31, 2016.
3. Andes includes Argentina and Colombia businesses only due to limited translational impact of USD appreciation to Chilean businesses.
2017 Foreign Exchange (FX) Risk Mitigated Through Structuring
of Our Businesses and Active Hedging
l 2017 correlated FX risk after hedges is $0.015 for 10% USD appreciation
l 80% of 2017 earnings effectively USD
„ USD-based economies (i.e. U.S., Panama)
„ Structuring of our contracts
l FX risk mitigated on a rolling basis by shorter-term active FX hedging programs
0.5
1.0
0.5
1.5
1.0 1.0
1.5
US Andes Brazil MCAC Europe Asia CorTotal
FX Risk After Hedges Impact of FX Hedges
80%
5%
7%
5%
1% 2%
USD-
Equivalent
GBPKZT
EUR
COP
BRL

Full Year 2019 Adjusted EPS1 Commodity Sensitivity2 for 10%
Change in Commodity Prices
2. Domestic and International sensitivities are combined and assumes each fuel category moves 10%. Adjusted EPS is negatively correlated to coal price
movement, and positively correlated to gas, oil and power price movements.
Commodity Exposure is Mostly Hedged in the Medium- to Long-
Term
(2.0)
0.0
2.0
4.0
6.0
Coal Gas Oil DPL Power
CentsPerShare

Parent Company Cash Flow Assumptions 2017
Subsidiary Distributions (a) $1,150-$1,265
Cash Interest (b) $285-$300
Corporate Overhead $150
Parent-Funded SBU Overhead $100
Business Development $40
Cash for Development, General & Administrative
and Tax (c)
$290
PARENT FREE CASH FLOW1 (a – b – c) $575-$675
$ in Millions
AES Modeling Disclosures

Project Country AES Ownership Fuel
Gross
MW
Expected
COD
Total Capex
Total
AES
Equity
ROE Comments
Construction Projects Coming On-Line 2017-2020
IPL Wastewater US-IN 70% Coal 2H 2017 $224 $71
Environmental (NPDES)
upgrades of 1,864 MW
Eagle Valley CCGT US-IN 70% Gas 671 1H 2018 $613 $193
Colón Panama 50% Gas 380 1H 2018 $996 $205
Regasification and LNG
storage tank expected on-line
in 2019
OPGC 2 India 49% Coal 1,320 2H 2018 $1,585 $227
Alto Maipo Chile 62% Hydro 531 1H 2019 $2,513 $413
Masinloc 2 Philippines 51% Coal 335 1H 2019 $740 $110
Southland Repowering US-CA 100% Gas 1,284 1H 2020 $2,314 $350
Total 4,621 $8,984 $1,568
ROE1 ~12%
Weighted average; net
income divided by AES
equity contribution
CASH YIELD1 ~13%
Weighted average;
subsidiary distributions
divided by AES equity
contribution
$ in Millions, Unless Otherwise Stated
1. Based on projections. See our 2016 Form 10-K for further discussion of development and construction risks. Based on 3-year average contributions from all
projects under construction and IPL wastewater upgrades, once all projects under construction are completed.
Attractive Returns from Construction Pipeline

$ in Millions
1. A non-GAAP financial measure as reconciled above. See “definitions”.
2. Includes capital expenditures under investing and financing activities.
Reconciliation of Q2 and YTD Capex and Free Cash Flow1
Q2 YTD
2017 2016 2017 2016
Operational Capex (a) $142 $158 $294 $320
Environmental Capex (b) $15 $68 $39 $155
Maintenance Capex (a + b) $157 $226 $333 $475
Growth Capex (c) $527 $466 $851 $867
TOTAL CAPEX2 (a + b + c) $684 $692 $1,184 $1,342
Q2 YTD
2017 2016 2017 2016
Operating Cash Flow $251 $723 $954 $1,363
Add: Capital Expenditures Related
to Service Concession Assets
$1 $2 $2 $26
Less: Maintenance Capex, net of
Reinsurance Proceeds and Non-
Recoverable Environmental
Capex
($146) ($171) ($304) ($345)
CONSOLIDATED FREE CASH
FLOW1 $106 $554 $652 $1,044

Q2 2017 Q2 2016
Net of NCI2
Per Share
(Diluted) Net
of NCI2
Net of NCI2
Per Share
(Diluted) Net
of NCI2
Income (Loss) from Continuing Operations Attributable to AES and
Diluted EPS
$53 $0.08 ($103) ($0.16)
Add: Income Tax Benefit from Continuing Operations Attributable to
AES
$53 ($42)
Pre-Tax Contribution $106 ($145)
Adjustments
Unrealized Derivative Gains $2 - $30 $0.04
Unrealized Foreign Currency Transaction Gains ($24) ($0.03) $17 $0.02
Disposition/Acquisition (Gains) Losses $54 $0.083 $17 $0.034
Impairment Expense $94 $0.145 $235 $0.366
(Gains) Losses on Extinguishment of Debt $11 $0.027 $6 $0.01
Less: Net Income Tax (Benefit) - ($0.04)8 - ($0.13)8
ADJUSTED PTC1 & ADJUSTED EPS1 $243 $0.25 $160 $0.17
1. Non-GAAP financial measures. See “definitions”.
2. NCI is defined as Noncontrolling Interests.
3. Amount primarily relates to loss on sale of Kazakhstan CHPs of $48 million, or $0.07 per share.
4. Amount primarily relates to the loss from the deconsolidation of UK Wind of $20 million, or $0.03 per share.
5. Amount primarily relates to asset impairments at Kazakhstan hydroelectric plants of $90 million, or $0.14 per share.
6. Amount primarily relates to the asset impairment at DPL of $235 million, or $0.36 per share.
7. Amount primarily relates to the loss on early retirement of debt at the Parent Company of $6 million, or $0.01 per share.
8. Amount primarily relates to the income tax benefit associated with asset impairment losses of $30 million, or $0.05 per share and $70 million, or $0.11 per share in the three
months ended June 30, 2017 and 2016, respectively.
Reconciliation of Q2 Adjusted PTC1 and Adjusted EPS1

YTD 2017 YTD 2016
Net of NCI2
Per Share
(Diluted) Net
of NCI2
Net of NCI2
Per Share
(Diluted) Net
of NCI2
Income (Loss) from Continuing Operations Attributable to AES and
Diluted EPS
$29 $0.04 $32 $0.05
Add: Income Tax Benefit from Continuing Operations Attributable to
AES
$73 $19
Pre-Tax Contribution $102 $51
Adjustments
Unrealized Derivative Gains $1 - ($4) -
Unrealized Foreign Currency Transaction Gains ($33) ($0.04) $9 -
Disposition/Acquisition (Gains) Losses $106 $0.163 ($2) -
Impairment Expense $262 $0.404 $285 $0.435
(Gains) Losses on Extinguishment of Debt ($5) ($0.01)6 $6 $0.01
Less: Net Income Tax (Benefit) - ($0.13)7 - ($0.17)7
ADJUSTED PTC1 & ADJUSTED EPS1 $433 $0.42 $345 $0.32
1. Non-GAAP financial measures. See “definitions”.
2. NCI is defined as Noncontrolling Interests.
3. Amount primarily relates to loss on sale of Kazakhstan CHPs of $48 million, or $0.07 per share, realized derivative losses associated with the sale of Sul of $38 million, or $0.06
per share; costs associated with early plant closure of DPL of $20 million, or $0.03 per share.
4. Amount primarily relates to asset impairment at Kazakhstan hydroelectric plants of $90 million, or $0.14 per share, at Kazakhstan CHPs of $94 million, or $0.14 per share, and
DPL of $66 million, or $0.10 per share.
5. Amount primarily relates to asset impairment at DPL of $235 million, or $0.36 per share; and Buffalo Gap II of $159 million ($49 million, or $0.07 per share, net of NCI).
6. Amount primarily relates to the gain on early retirement of debt at Alicura of $65 million, or $0.10 per share, partially offset by the loss on early retirement of debt at the Parent
Company of $53 million, or $0.08 per share.
7. Amount primarily relates to the income tax benefit associated with asset impairment losses of $81 million, or $0.12 per share and $122 million, or $0.18 per share in the six
months ended June 30, 2017 and 2016, respectively.
Reconciliation of YTD Adjusted PTC1 and Adjusted EPS1

2. Actual 2017 Adjusted EPS was $0.98. The above range is provided as a base for future growth rates. Reconciliation of Adjusted EPS may be found in the Company’s 2016
Form 10-K.
Reconciliation of 2016 Guidance
2016 Guidance
Consolidated Net Cash Provided by Operating
Activities
$2,000-$2,900
Adjusted EPS1,2 $0.95-$1.05
Reconciliation
Activities (a)
$2,000-$2,900
Maintenance & Environmental Capital
Expenditures (b)
$600-$800
Consolidated Free Cash Flow1 (a - b) $1,300-$2,200
l Commodity and foreign currency exchange rates and forward curves as of
September 30, 2016

2. The Company is not able to provide a corresponding GAAP equivalent for its Adjusted EPS guidance. In providing its full year 2017 Adjusted EPS guidance, the Company notes
that there could be differences between expected reported earnings and estimated operating earnings, including the items listed below. Therefore, management is not able to
estimate the aggregate impact, if any, of these items on reported earnings. As of June 30, 2017, the impact of these items was as follows: (a) unrealized gains or losses related
to derivative transactions represent a loss of $1 million, (b) unrealized foreign currency gains or losses represent a gain of $17 million, (c) gains or losses and associated
benefits and costs due to dispositions and acquisitions of business interests, including early plant closures, and the tax impact from the repatriation of sales proceeds represent
a loss of $87 million, (d) losses due to impairments of $181 million and (e) gains, losses and costs due to the early retirement of debt represent a gain of $3 million.
Reconciliation of 2017 Guidance
2017 Guidance
Activities
$2,000-$2,800
Consolidated Free Cash Flow1 $1,400-$2,000
Adjusted EPS1, 2 $1.00-$1.10
Reconciliation
Activities (a)
$2,000-$2,800
Maintenance & Environmental Capital
Expenditures (b)
$600-$800
Consolidated Free Cash Flow1 (a - b) $1,400-$2,000
l Commodity and foreign currency exchange rates and forward curves as of June 30,
2017

Forecasted financial information is based on certain material assumptions. Such assumptions include, but are not limited
to: (a) no unforeseen external events such as wars, depressions, or economic or political disruptions occur; (b)
businesses continue to operate in a manner consistent with or better than prior operating performance, including
achievement of planned productivity improvements including benefits of global sourcing, and in accordance with the
provisions of their relevant contracts or concessions; (c) new business opportunities are available to AES in sufficient
quantity to achieve its growth objectives; (d) no material disruptions or discontinuities occur in the Gross Domestic
Product (GDP), foreign exchange rates, inflation or interest rates during the forecast period; and (e) material business-
specific risks as described in the Company’s SEC filings do not occur individually or cumulatively. In addition, benefits
from global sourcing include avoided costs, reduction in capital project costs versus budgetary estimates, and projected
savings based on assumed spend volume which may or may not actually be achieved. Also, improvement in certain Key
Performance Indicators (KPIs) such as equivalent forced outage rate and commercial availability may not improve
financial performance at all facilities based on commercial terms and conditions. These benefits will not be fully reflected
in the Company’s consolidated financial results.
The cash held at qualified holding companies (“QHCs”) represents cash sent to subsidiaries of the Company domiciled
outside of the U.S. Such subsidiaries had no contractual restrictions on their ability to send cash to AES, the Parent
Company, however, cash held at qualified holding companies does not reflect the impact of any tax liabilities that may
result from any such cash being repatriated to the Parent Company in the U.S. Cash at those subsidiaries was used for
investment and related activities outside of the U.S. These investments included equity investments and loans to other
foreign subsidiaries as well as development and general costs and expenses incurred outside the U.S. 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. 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’ indebtedness.
Assumptions

l Adjusted Earnings Per Share (a non-GAAP financial measure) is defined as diluted earnings per share from continuing operations excluding gains or losses of both
consolidated entities and entities accounted for under the equity method due to (a) unrealized gains or losses related to derivative transactions, (b) unrealized foreign
currency gains or losses, (c) gains or losses and associated benefits and costs due to dispositions and acquisitions of business interests, including early plant closures, and
the tax impact from the repatriation of sales proceeds, (d) losses due to impairments, and (e) gains, losses and costs due to the early retirement of debt. The GAAP
measure most comparable to adjusted EPS is diluted earnings per share from continuing operations. We believe that adjusted EPS better reflect the underlying business
performance of the Company and are 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 of or
acquire business interests or retire debt, which affect results in a given period or periods. Adjusted EPS should not be construed as alternatives to income from continuing
operations attributable to AES and diluted earnings per share from continuing operations, which are determined in accordance with GAAP. Beginning in the first quarter of
2017, the definition was revised to exclude associated benefits and costs due to acquisitions, dispositions and early plant closures, including the tax impact of decisions
made at the time of sale to repatriate proceeds.
l Adjusted Pre-Tax Contribution (a non-GAAP financial measure) is defined as 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) gains or losses and
associated benefits and costs due to dispositions and acquisitions of business interests, including early plant closures, and the tax impact from the repatriation of sales
proceeds, (d) losses due to impairments, and (e) gains, losses and costs due to the early retirement of debt. Adjusted PTC also includes net equity in earnings of affiliates on
an after-tax basis adjusted for the same gains or losses excluded from consolidated entities. The GAAP measure most comparable to adjusted PTC is income from
continuing operations attributable to AES. We believe that adjusted PTC better reflect the underlying business performance of the Company and are 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 of or acquire business interests or retire debt, which
affect results in a given period or periods. In addition, for adjusted PTC, earnings before tax represents the business performance of the Company before the application of
statutory income tax rates and tax adjustments, including the effects of tax planning, corresponding to the various jurisdictions in which the Company operates. Adjusted PTC
should not be construed as alternatives to income from continuing operations attributable to AES and diluted earnings per share from continuing operations, which are
determined in accordance with GAAP. Beginning in the first quarter of 2017, the definition was revised to exclude associated benefits and costs due to acquisitions,
dispositions and early plant closures, including the tax impact of decisions made at the time of sale to repatriate proceeds.
l Free Cash Flow (a non-GAAP financial measure) is defined as net cash from operating activities (adjusted for service concession asset capital expenditures) less
maintenance capital expenditures (including non-recoverable 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 generated by the business after the funding of maintenance
capital expenditures that may be available for investing in growth opportunities or for repaying debt. Free cash flow should not be construed as an alternative to net cash
from operating activities, which is determined in accordance with GAAP.
l Parent Company Liquidity (a non-GAAP financial measure) 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’ indebtedness.
l 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 equal to Subsidiary Distributions less cash used for interest costs, development, general and administrative activities, and
tax payments by the Parent Company. Parent Free Cash Flow is used for dividends, share repurchases, growth investments, recourse debt repayments, and other uses by
the Parent Company.
l Subsidiary Liquidity (a non-GAAP financial measure) is defined as cash and cash equivalents and bank lines of credit at various subsidiaries.
l Subsidiary Distributions should not be construed as an alternative to Net Cash Provided by Operating Activities which is 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 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.
Definitions

08 08-17 second quarter 2017 financial review final

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to 08 08-17 second quarter 2017 financial review final

Similar to 08 08-17 second quarter 2017 financial review final (19)

Recently uploaded

Recently uploaded (20)

08 08-17 second quarter 2017 financial review final