SlideShare a Scribd company logo
1 of 25
Download to read offline
»AES Corporation
 Third Quarter 2007 Financial Review
 November 7, 2007
» Safe Harbor Disclosure
Certain statements in the following presentation regarding AES’s 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’s current expectations
based on reasonable assumptions. Forecasted financial information is based on certain material
assumptions. These assumptions include, but are not limited to, 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 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’s filings with the Securities and Exchange Commission including but not limited to the
risks discussed under Item 1A “Risk Factors” in the Company’s Annual Report on Form 10-K/A for the
year ended December 31, 2006, 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.




                                                                                             AES Corporation   1


                                   Third Quarter 2007 Financial Review
» Highlights
 › Q3 Revenues up 18% to $3.5 Billion and Gross Margin up 2% to $840 Million

 › Q3 and year-to-date Adjusted EPS of $0.18 and $0.82

   – Q3 reflects impacts of higher costs and lower volumes in Chile & Argentina, partially offset by
     operational improvements in North America and contributions from new businesses

 › Excluding the impacts of EDC, sold in May 2007:
   –3Q07 net cash from operating activities would have decreased by $19 million to $741 million and
    free cash flow would have increased by $20 million to $573 million
   –For the first nine months of 2007, net cash from operating activities would have increased by
    $162 million to $1.8 billion and free cash flow would have increased by $81 million to $1.2 billion
 › Portfolio and Capital Structure Optimization Plans on Track
   – Sold 10% stake in Chilean subsidiary (Gener) for approximately $300 million

   – Issued $2 billion unsecured notes, primarily to refinance 2nd Lien notes

 › On Track to Achieve our 2011 Growth Targets

   – Announced as Winner of Bids in Philippines and South Africa totaling 1,762 MW

   – Announced Commencement of Construction of 170 MW Expansion to Buffalo Gap Wind Farm
     (Buffalo Gap 3)

                                                                                           AES Corporation   2


                                 Third Quarter 2007 Financial Review
» Recent Parent Refinancing Improves Maturity Profile
                                                                                                 Contains Forward Looking Statements

        › The refinancing of our 2008 Unsecured notes and our 2nd lien notes will:
                –Decrease secured debt as a percentage of total parent debt from 41% to approximately
                 17%
                –Raise the average life of parent debt from approximately 6.3 years to 7.6 years

               $1,500




               $1,000
  (millions)




                $500




                  $0
                        2007


                               2008


                                       2009


                                                 2010


                                                        2011


                                                                 2012


                                                                        2013


                                                                               2014


                                                                                          2015


                                                                                                    2016


                                                                                                            2017

                                                                                                                   Beyond
                                                                                                                    2017
                               Parent Maturities as of 9/30/07                        Pro Forma Maturities         AES Corporation   3


                                              Third Quarter 2007 Financial Review
» Third Quarter 2007 Highlights
          ($ Millions Except Earnings Per Share and Percent)

                                     Third                  Third
                                                                                                                          Consolidated Highlights
                                                                                % Change
                                  Quarter 2007           Quarter 2006
                                       $3,471                 $2,947                18%
                  Revenues                                                                         › Gross margin increased by $14 million to $840 million, primarily due
                                                                                                      to:
                                         840                    826                  2%
                Gross Margin                                                                            – Favorable foreign currency translation ~ $52 MM
                                                                                                        – Higher prices in North America and contributions from TEG and
                                         400                   (178)                 NA
   Income Before Taxes                                                                                      TEP in Mexico of ~ $47 MM
    and Minority Interest                                                                               – Unfavorable impacts of gas curtailments and lower hydrology in
           (IBT & MI)(1)                                                                                    Argentina and Chile ~ $102 MM
                                                                                                   › Excluding the impacts of the Brazil restructuring in Q306, quarter-
                                         0.14                  (0.56)                NA
      Diluted EPS from
                                                                                                      over-quarter differences in EPS primarily due to:
Continuing Operations(2)
                                                                                                        – Operations in Argentina and Chile impacted both diluted and
                                                                                                            adjusted EPS by ~ ($0.07)
                                         0.18                  $0.30                (40%)
                    EPS(3)(4)
       Adjusted                                                                                         – Impairments in North America businesses impacted diluted
                                                                                                            EPS by ~ ($0.03). No impact on adjusted EPS
                                                                                                        – Partially offset by higher prices in North America and
                                         741                    928                 (20%)
Net Cash from Operating
                                                                                                            contributions from new businesses
               Activities
                                                                                                   › Excluding contributions from EDC, net cash from operating activities
                                                                                                      would have decreased ~ $19 million.
                                         573                    732                 (22%)
       Free Cash Flow(3)                                                                           › Excluding contributions from EDC, free cash flow would have
                                                                                                      increased by ~ $20 million.



     (1)Third quarter 2006 income before taxes & minority interest includes impacts of ($554) million associated with the Brazil restructuring
     (2)Third quarter 2006 income from continuing operations and diluted earnings per share include after-tax impacts of ($500) million or ($0.76) per diluted share associated
        with the Brazil restructuring
     (3)A non-GAAP financial measure. See Appendix.
     (4)Third quarter 2006 adjusted earnings per share includes a one-time favorable benefit of $0.07 associated with the Brazil restructuring                   AES Corporation   4
     Note: All prior period results in this presentation reflect businesses placed in discontinued operations effective March 31, 2007.

                                                               Third Quarter 2007 Financial Review
» Reconciliation of Adjusted Earnings Per Share(1)
     ($ Per Share)

                                                                                                                                        Nine Months Ended
                                                                                                    Third Quarter                       September 30, 2007

                                                                                                 2007                 2006                 2007                 2006
  Diluted Earnings Per Share from Continuing                                                     $0.14              ($0.56)                $0.71               $0.22
  Operations
       FAS 133 Mark to Market (Gains)/Losses                                                      0.01                 0.02                 0.02                    -

       Currency Transaction (Gains)/Losses                                                           -                 0.01                    -                 0.01

       Net Asset (Gains)/Losses and Impairments                                                   0.03                 0.83                 0.09                 0.69

       Debt Retirement (Gains)/Losses                                                                -                    -                    -                 0.04

  Adjusted Earnings Per Share(1)                                                                 $0.18                $0.30                $0.82               $0.96


(1)Adjusted  earnings per share (a non-GAAP financial measure) 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 recourse 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 transaction gains or
losses, periodic strategic decisions to dispose of certain assets which may influence results in a given period, and the early retirement of corporate debt.

                                                                                                                                                            AES Corporation      5


                                                           Third Quarter 2007 Financial Review
» Third Quarter 2007 Bridge
          ($ Per Share)



                    $0.76                                                                                                                  $0.04
                                                           $0.03                                                $0.03
                                                                                                                                                          $0.18
                                                                             ($0.02)
                                      ($0.07)                                                                                $0.14
                                                                                                 ($0.03)
($0.56)




                Brazil                Chile &          Improvements           Higher                                                       Adjusted
3Q06 Diluted                                                                                  Impairments in                3Q07 Diluted                   3Q07
                                                                                                               Lower Non-
             Restructuring           Argentina           in Gross              G&A                                                           EPS
 EPS from                                                                                         North                       EPS from                    Adjusted
                                                                                                                Operating
              Impacts(1)                                 Margin(2)           Expense(2)                                                    Factors(3)
                                                                                                America(2)                                                 EPS(3)
                                     Operations
 Continuing                                                                                                                  Continuing
                                                                                                                Expense
                                     Impacts(2)
 Operations                                                                                                                  Operations

         › Unfavorable impacts of gas curtailments and lower hydrology in Argentina and Chile impacted results by approximately $0.07
         › Other operational improvements, primarily due to higher prices in New York and the contributions of TEG/TEP in Mexico
         › Higher G&A, primarily due to increased spending to strengthen our financial infrastructure, including the accelerated
           implementation of SAP, and to support new business development initiatives

   (1)Calculated as $500 million divided by 658 million shares
   (2)Estimate, shown on a post-tax, ownership-adjusted basis (using consolidated effective tax rate)
   (3)A non-GAAP financial measure. See Appendix.
                                                                                                                                              AES Corporation   6


                                                              Third Quarter 2007 Financial Review
» Cash Flow Highlights
      ($ Millions)
                                                                                                                                          Nine Months Ended
                                                                                                        Third Quarter                       September 30,
                                                                                                      2007                2006                2007                2006
Consolidated
Net Cash from Operating Activities(1)                                                                 $741                $928              $1,848              $1,879
Maintenance Capital Expenditures:
         Operational Maintenance Capex(3)                                                             $112                $153                $508                $447
         Environmental Capex(3)                                                                        $56                 $43                $171                $128
Less: Total Maintenance Capital Expenditures(3)                                                       $168                $196                $679                $575

Free Cash Flow(2)(3)                                                                                  $573                $732              $1,169              $1,304


    › Excluding the impacts of EDC, net cash from operating activities would have decreased by $19 million for 3Q07
      compared to 3Q06 and increased by $162 million for the first nine months of 2007 compared to the first nine months
      of 2006
    › Excluding the impacts of EDC, free cash flow would have increased by $20 million for 3Q07 compared to 3Q06 and
      increased by $81 million for the first nine months of 2007 compared to the first nine months of 2006

(1)Excluding  the impacts of EDC, net cash from operating activities would have been $760 million for 3Q06, $1,794 million for the first nine months of 2007 and $1,632
   million for the first nine months of 2006
(2)Excluding the impacts of EDC, free cash flow would have been $553 million for 3Q06, $1,159 million for the first nine months of 2007 and $1,078 million for the first nine

   months of 2006                                                                                                                                            AES Corporation    7
(3)A non-GAAP financial measure. See Appendix.



                                                            Third Quarter 2007 Financial Review
» Subsidiary Distributions
        ($ Millions)

                Third Quarter/Nine Months Ended September 30, 2007 Subsidiary Distributions(1)
                            North                                           Europe &
                                                                                                        Other(2)
                                                  Latin America                                Asia                         Total
                           America                                           Africa
Utilities                   42 / 116                    57 / 174                -/1             -/-                       99 / 291
Generation                 150 / 268                     24 / 39             45 / 102         35 / 43                    254 / 452
Other                                                                                                    8 / 13             8 / 13
Total                      192 / 384                    81 / 213             45 / 103         35 / 43    8 / 13          361 / 756


                       Top 10 Nine Months Ended September 30, 2007 Subsidiary Distributions(1)
 Business                   Amount                     Segment              Business         Amount               Segment
 New York                       121               NA Generation            Cartagena            35         E&A Generation
  IPALCO                        116                  NA Utilities          Shady Point          29          NA Generation
   EDC(3)                        97                   LA Utilities         Andres               24          LA Generation
 Brasiliana                      77                   LA Utilities         Ekibastuz            24         E&A Generation
   Hawaii                        42               NA Generation            Southland            24          NA Generation

 (1)Anon-GAAP financial measure. See Appendix.
 (2)Otherincludes wind and other alternative energy projects                                                         AES Corporation   8
 (3)AES sold its interest in EDC in second quarter 2007



                                                               Third Quarter 2007 Financial Review
» Third Quarter Segment Highlights
    Latin America Generation
        ($ Millions except as noted)


                           Third Quarter

                        2007           2006       % Change                    Segment Highlights
                                                                 › Latin America Generation revenue increased by
Revenues                $914           $685          33%
                                                                  $229 million to $914 million, primarily due to
                                                                  higher rates and volumes in Chile and Argentina
Gross Margin             183           267           -31%
                                                                  of approximately $150 million and approximately
                                                                  $32 million in higher intercompany sales at Tiete
IBT & MI                 141           212           (33%)
                                                                  in Brazil.
                                                                 › Gross margin decreased by $84 million to $183
                                                                  million, primarily impacted by gas supply
                                                                  curtailments and lower hydrology in Chile and
Revenue Comparison (QOQ)                          % Change        Argentina of approximately $102 million, partially
                                                                  offset by increased intercompany sales at Tiete.
Volume/Price/Mix                                     31%
                                                                 › IBT&MI decreased by $71 million to $141
                                                                  million, primarily due to gas supply curtailments
New Businesses/Projects                               0%
                                                                  and lower hydrology in Chile and Argentina,
                                                                  partially offset by increases in intercompany
Currency (Net)                                        2%
                                                                  sales at Tiete.
Total                                                33%

                                                                                                    AES Corporation   9


                                        Third Quarter 2007 Financial Review
» Third Quarter Segment Highlights
        Latin America Utilities
        ($ Millions except as noted)

                            Third Quarter

                                                                                Segment Highlights
                         2007          2006        % Change
                                                                  › Latin America Utility revenue increased by $141
Revenues                $1,311         $1,170         12%
                                                                   million to $1.3 billion, primarily due to
                                                                   approximately $135 million in favorable foreign
Gross Margin             259            188           38%
                                                                   currency translation and approximately $26
                                                                   million in increased volumes at Eletropaulo in
IBT & MI                 193           (444)          143%
                                                                   Brazil, partially offset by decreased rates at
                                                                   Eletropaulo due to the 2007 tariff reset.
                                                                  › Gross margin increased by $71 million to $259
                                                                   million, primarily due to approximately $55
Revenue Comparison (QOQ)                           % Change        million in favorable foreign currency translation
                                                                   and approximately $33 million in lower costs in
Volume/Price/Mix                                       0%
                                                                   Brazil.
New Businesses/Projects                                0%         › IBT&MI increased by $637 million to $193
                                                                   million, primarily due to the $554 million charge
Currency (Net)                                        12%          in the third quarter of 2006 related to the Brazil
                                                                   restructuring as well as favorable foreign
                                                                   currency translation and lower costs in Brazil in
Total                                                 12%
                                                                   2007.

                                                                                                     AES Corporation   10


                                         Third Quarter 2007 Financial Review
» Third Quarter Segment Highlights
        North America Generation
        ($ Millions except as noted)


                                       Third Quarter

                                2007            2006        % Change                    Segment Highlights
                                                                           › North America Generation revenue increased by
Revenues                        $566            $490           16%
                                                                            $76 million to $566 million, primarily due to
                                                                            approximately $57 million in contributions from
Gross Margin                     196             149           32%
                                                                            the newly acquired TEG and TEP businesses in
                                                                            Mexico and approximately $25 million in higher
IBT & MI                          83             62            34%
                                                                            spot prices and volumes at Eastern Energy in
                                                                            New York.
                                                                           › Gross margin increased by $47 million to $196
                                                                            million, primarily due to the higher prices and
Revenue Comparison (QOQ)                                    % Change        volumes as well as lower costs at Eastern
                                                                            Energy, an impact of approximately $27 million,
Volume/Price/Mix                                                4%
                                                                            and contributions from TEG and TEP of
                                                                            approximately $20 million.
New Businesses/Projects(1)                                     12%
                                                                           › IBT&MI increased by $21 million, primarily due
                                                                            to higher prices and volumes as well as lower
Currency (Net)                                                  0%
                                                                            costs at Eastern Energy and contributions from
                                                                            TEG and TEP totaling approximately $47 million,
Total                                                          16%
                                                                            offset by $35 million of impairment expense at
                                                                            Placerita and Cavanal Minerals.
 (1)Includes   TEG and TEP in Mexico                                                                         AES Corporation   11


                                                  Third Quarter 2007 Financial Review
» Third Quarter Segment Highlights
        North America Utilities
        ($ Millions except as noted)

                            Third Quarter

                        2007           2006       % Change                     Segment Highlights
                                                                 › North America Utility revenue remained flat at
Revenues                $274           $274           0%
                                                                  $274 million.
Gross Margin              86           89            (3%)        › Consistent with revenues, gross margin
                                                                  remained relatively flat with a decrease of $3
IBT & MI                  57           58            (2%)         million to $86 million.
                                                                 › Consistent with revenues and gross margin,
                                                                  IBT&MI remained relatively flat with a decrease
                                                                  of $1 million to $57 million.
Revenue Comparison (QOQ)                          % Change
Volume/Price/Mix                                      0%

New Businesses/Projects                               0%

Currency (Net)                                        0%

Total                                                 0%

                                                                                                    AES Corporation   12


                                        Third Quarter 2007 Financial Review
» Third Quarter Segment Highlights
        Europe & Africa Generation(1)
        ($ Millions except as noted)


                                  Third Quarter

                                2007       2006        % Change                    Segment Highlights
                                                                      › Europe & Africa Generation revenue increased
Revenues                        $216       $196           10%
                                                                       by $20 million to $216 million, primarily due to
                                                                       increased rates and volumes of approximately
Gross Margin                     35         38            (8%)
                                                                       $15 million in Kazakhstan and approximately $3
                                                                       million in favorable foreign currency translation.
IBT & MI                         26         13            100%
                                                                      › Gross margin decreased by $3 million, primarily
                                                                       due decreased sales of excess emission
                                                                       allowances in Hungary.
                                                                      › IBT&MI increased by $13 million to $26 million,
Revenue Comparison (QOQ)                               % Change
                                                                       primarily due to $11 million in foreign currency
Volume/Price/Mix                                           1%          transaction losses in Kazakhstan during third
                                                                       quarter 2006.
New Businesses/Projects                                    0%

Currency (Net)                                             9%

Total                                                     10%

  (1)Includes   CIS countries                                                                            AES Corporation   13


                                             Third Quarter 2007 Financial Review
» Third Quarter Segment Highlights
        Europe & Africa Utilities(1)
        ($ Millions except as noted)


                                  Third Quarter

                                2007       2006        % Change                    Segment Highlights
                                                                      › Europe & Africa Utility revenue increased by $26
Revenues                        $157       $131           20%
                                                                       million to $157 million, primarily due to increased
                                                                       rates of approximately $14 million in Ukraine and
Gross Margin                     22         30            (27%)
                                                                       approximately $6 million in favorable foreign
                                                                       currency translation.
IBT & MI                         20         25            (20%)
                                                                      › Gross margins decreased by $8 million to $22
                                                                       million, primarily due to the reversal of
                                                                       approximately $7 million in VAT tax accrual
                                                                       during third quarter 2006 at SONEL in
Revenue Comparison (QOQ)                               % Change        Cameroon.
Volume/Price/Mix                                          15%         › Consistent with gross margin, IBT&MI
                                                                       decreased by $5 million to $20 million primarily
New Businesses/Projects                                    0%          due to the reversal of the VAT tax accrual during
                                                                       the third quarter 2006 at SONEL in Cameroon.
Currency (Net)                                             5%

Total                                                     20%

  (1)Includes   CIS countries                                                                            AES Corporation   14


                                             Third Quarter 2007 Financial Review
» Third Quarter Segment Highlights
        Asia Generation(1)
        ($ Millions except as noted)


                                    Third Quarter

                                  2007       2006        % Change                     Segment Highlights
                                                                        › Asia Generation revenue increased by $44
Revenues                          $235       $191           23%
                                                                         million to $235 million, primarily due to higher
                                                                         dispatch in Pakistan and higher volume in Sri
Gross Margin                       47         53            (11%)
                                                                         Lanka.
IBT & MI                           35         40            (13%)       › Gross margin decreased by $6 million to $47
                                                                         million, primarily due to lower volumes in China.
                                                                         Increased revenue in Pakistan and Sri Lanka
                                                                         had a relatively flat impact on gross margin due
                                                                         to a related increase in costs.
Revenue Comparison (QOQ)                                 % Change
                                                                        › Consistent with gross margin, IBT&MI
Volume/Price/Mix                                            22%          decreased by $5 million to $35 million primarily
                                                                         due to lower volumes in China.
New Businesses/Projects                                      0%

Currency (Net)                                               1%

Total                                                       23%

  (1)Includes   the Middle East                                                                            AES Corporation   15


                                               Third Quarter 2007 Financial Review
» 2007 Guidance Update

                                                                                        2007 Full Year       Nine Months Ended
                            2007 Guidance Element                                         Guidance           September 30, 2007
Gross Margin                                                                           $3.5 to 3.6 billion       $2.6 billion
Income Before Tax & Minority Interest                                                  $2.0 to 2.1 billion       $1.6 billion
Diluted Earnings Per Share from Continuing Operations                                        $1.04                 $0.71
Adjusted Earnings Per Share Factors(1)                                                       $0.03                 $0.11
Adjusted Earnings Per Share(1)                                                               $1.07                 $0.82
Net Cash from Operating Activities                                                     $2.2 to 2.3 billion       $1.8 billion
Maintenance Capital Expenditures                                                       $0.9 to 1.0 billion      $679 million
Free Cash Flow(1)                                                                      $1.2 to 1.4 billion       $1.2 billion
Growth Capital Expenditures                                                            $1.4 to 1.5 billion       $1.1 billion
Subsidiary Distributions(1)(2)                                                            $1.1 billion          $756 million




  (1)A   non-GAAP financial measure. See Appendix.
  (2)Includes dividends received from EDC of approximately $100 million
                                                                                                                   AES Corporation   16


                                                           Third Quarter 2007 Financial Review
» Appendix




                                                   AES Corporation   17


             Third Quarter 2007 Financial Review
» Parent Sources and Uses of Cash
                                                                          Third Quarter        Nine Months Ended
  ($ Millions)
                                                                                2007           September 30, 2007
  Sources
  Total Subsidiary Distributions(1)                                                     361                      756
  Proceeds from Asset Sales, Net                                                         54                      789
  Refinancing Proceeds, Net                                                                -                           -
  Increased Credit Facility Commitments                                                    -                           -
  Issuance of Common Stock, Net                                                           5                       30
  Total Returns of Capital Distributions and Project Financing Proceeds                  35                       85
  Beginning Liquidity(1)                                                               1,378                  1,146
         Total Sources                                                                 1,833                  2,806
  Uses
  Repayments of Debt                                                                       -                           -
  Investments in Subsidiaries, Net                                                     (174)                   (852)
  Cash for Development, Selling, General and Administrative and Taxes                   (89)                   (255)
  Cash Payments for Interest                                                            (83)                   (297)
  Changes in Letters of Credit and Other, Net                                            28                      113
  Ending Liquidity(1)                                                              (1,515)                  (1,515)
         Total Uses                                                                (1,833)                  (2,806)

(1)A   non-GAAP financial measure                                                                    AES Corporation       18


                                          Third Quarter 2007 Financial Review
» Third Quarter 2007 Consolidated Cash Flow
     ($ Millions)
                                                                                                      3Q ‘07                                      3Q ‘06
    Net Cash Provided by Operating Activities(1)(2)                                                    $741                                        $928
    Capital Expenditures                                                                               (538)                                       (445)
    Acquisitions, Net of Cash Acquired                                                                  (60)                                         -
    Proceeds from the Sale of Business                                                                   54                                         583
    Proceeds from the Sales of Assets                                                                     5                                          3
    Sale/(Purchase) of Short-Term Investments, Net                                                      265                                        (115)
    Decrease in Restricted Cash                                                                          74                                         67
    Proceeds from the Sale of Emission Allowances                                                         -                                          8
    Purchase of Emission Allowances                                                                      (1)                                        (5)
    Decrease in Debt Service Reserves and Other Assets                                                  (46)                                        (4)
    Repayment of Affiliate Loan                                                                          55                                          -
    Other Investing                                                                                       4                                         13
                                                                                                       (188)                                       105
    Net Cash (Used in) Provided by Investing Activities


    Borrowings/(Repayments) under the Revolving Credit Facilities, Net                                  101                                         (39)
    Issuance of Non-Recourse Debt                                                                       371                                         237
    Repayments of Non-Recourse Debt                                                                    (538)                                       (353)
    Payments of Deferred Financing Costs                                                                (15)                                         (9)
    Distributions to Minority Interests                                                                (305)                                       (85)
    Contributions from Minority Interests                                                                34                                          -
    Issuance of Common Stock                                                                              7                                         31
    Financed Capital Expenditures                                                                       (19)                                       (30)
    Other Financing                                                                                       1                                         (4)
    Net Cash Used in Financing Activities                                                              (363)                                       (252)


    Total Increase in Cash & Cash Equivalents                                                           190                                        781
    Effect of Exchange Rate Changes on Cash                                                             (4)                                        (14)
    Cash & Cash Equivalents, Beginning                                                                 1,478                                      1,032

    Cash & Cash Equivalents, Ending                                                                    1,664                                      1,799



(1)Depreciationand amortization from continuing operations was $238 million for 3Q07 and $211 million for 3Q06.
(2)Depreciationand amortization from continuing operations was $686 million for the nine months ended September 30, 2007 and $623 million for the nine months ended
September 30, 2006.
Note: Certain amounts have been netted, condensed and rounded for presentation purposes.
                                                                                                                                                       AES Corporation   19


                                                                  Third Quarter 2007 Financial Review
» Reconciliation of Subsidiary
       Distributions and Parent Liquidity
        ($ Millions)

                                                                                        Quarter Ended
                                                                      Sept. 30,     Jun. 30,     Mar. 31,    Dec. 31,
                                                                        2007         2007         2007        2006
       Total subsidiary Distributions                                      $361          $259       $137          $311
       Total returns of capital distributions                                 35           34           15              9
       Total subsidiary distributions & returns of                         $396          $293       $152          $320
       capital to Parent



                                                                                        Balance as of
       Parent Company Liquidity(2)                                    Sept. 30,     Jun. 30,     Mar. 31,    Dec. 31,
                                                                        2007         2007         2007        2006
       Cash at Parent & QHCs(1)(2)                                         $619          $405        $74          $257
       Availability under revolver                                           896          973        804            889
       Ending liquidity                                                  $1,515         $1,378      $878        $1,146


(1)Qualified Holding Company. See “Assumptions”
(2)A   non-GAAP financial measure                                                                            AES Corporation   20


                                                  Third Quarter 2007 Financial Review
» Assumptions
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 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 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 qualifying 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. 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’s indebtedness.


                                                                                                    AES Corporation   21


                                      Third Quarter 2007 Financial Review
» Definitions of Non-GAAP Financial Measures
 › Adjusted earnings per share – 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)
  early retirement of recourse 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 corporate debt.
 › Free cash flow – Defined as net cash flow from operating activities less maintenance capital
  expenditures (including environmental capital expenditures). Maintenance capital expenditures reflect
  property additions less growth 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.
 › Liquidity – Defined as cash at the parent company plus availability under corporate revolver plus cash at
  qualifying 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.
 › Subsidiary distributions – Defined as cash distributions (primarily dividends and interest income) from
  subsidiary companies to the parent company and qualified holding companies. AES believes subsidiary
  distributions are an important measure, as these cash flows are the source of cash flow to the parent to
  meet corporate interest, overhead, cash taxes, and discretionary uses such as recourse debt reductions
  and corporate investments.                                                                    AES Corporation   22


                                    Third Quarter 2007 Financial Review
» Reconciliation of Cash Flow Items
          ($ Millions)



                                                                              Nine Months Ended
                                                      Third Quarter             September 30,
                                                  2007             2006     2007              2006
Capital Expenditures
Maintenance Capital Expenditures                  $168             $196     $679              $575
Growth Capital Expenditures                       $389             $279     $1,076            $469
Capital Expenditures                              $557             $475     $1,755          $1,044


                                                                              Nine Months Ended
                                                      Third Quarter             September 30,
Reconciliation of Free Cash Flow                  2007             2006     2007              2006
Net Cash from Operating Activities                $741             $928     $1,848          $1,879
Less: Maintenance Capital Expenditures            $168             $196     $679              $575
Free Cash Flow(1)                                 $573             $732     $1,169          $1,304




                                                                                      AES Corporation   23
  (1)A   non-GAAP Financial Measure


                                      Third Quarter 2007 Financial Review
» Reconciliation of Quarterly Adjusted Earnings per Share(1)

                                              1Q06        2Q06         3Q06         4Q06        FY2006           1Q07
                                            (Restated)   (Restated)   (Restated)   (Restated)   (Restated)     (Restated)

Diluted Earnings Per Share from
                                              $0.48       $0.29       ($0.56)      ($0.02)       $0.20           $0.17
Continuing Operations

       FAS 133 Mark to Market
                                              (0.01)      (0.01)        0.02           -            -             0.01
       (Gains)/Losses

       Currency Transaction
                                                -            -          0.01        (0.01)        0.01              -
       (Gains)/Losses

       Net Asset (Gains)/Losses and
                                              (0.13)         -          0.83           -          0.68            0.05
       Impairments


       Debt Retirement (Gains)/Losses         0.04           -            -            -          0.04              -

Adjusted Earnings Per Share(1)                $0.38       $0.28        $0.30       ($0.03)       $0.93           $0.23




(1)A   non-GAAP Financial Measure
                                                                                                         AES Corporation   24


                                        Third Quarter 2007 Financial Review

More Related Content

What's hot

PEG_Boston Investor Meeting
PEG_Boston Investor MeetingPEG_Boston Investor Meeting
PEG_Boston Investor Meetingfinance20
 
PEG_MorganStanley
PEG_MorganStanleyPEG_MorganStanley
PEG_MorganStanleyfinance20
 
csx 2007_JP_Morgan_Conference-REF23640
csx  2007_JP_Morgan_Conference-REF23640csx  2007_JP_Morgan_Conference-REF23640
csx 2007_JP_Morgan_Conference-REF23640finance27
 
Cabo presentation feb282011ppt(f)
Cabo presentation feb282011ppt(f)Cabo presentation feb282011ppt(f)
Cabo presentation feb282011ppt(f)Company Spotlight
 
AES 2004 20 Financial 20Review20and20200520Outlook_FINAL
AES 2004 20 Financial 20Review20and20200520Outlook_FINALAES 2004 20 Financial 20Review20and20200520Outlook_FINAL
AES 2004 20 Financial 20Review20and20200520Outlook_FINALfinance19
 
raytheon Investor Conference Presentation - Afternoon Session
raytheon	Investor Conference Presentation - Afternoon Sessionraytheon	Investor Conference Presentation - Afternoon Session
raytheon Investor Conference Presentation - Afternoon Sessionfinance12
 
Iochpe-Maxion - 4Q07 Presentation
Iochpe-Maxion - 4Q07 PresentationIochpe-Maxion - 4Q07 Presentation
Iochpe-Maxion - 4Q07 PresentationIochpe-Maxion
 
public serviceenterprise group Citigroup
public serviceenterprise group Citigrouppublic serviceenterprise group Citigroup
public serviceenterprise group Citigroupfinance20
 
el paso EP3Q2008EarningsFINAL(Web)
el paso  EP3Q2008EarningsFINAL(Web)el paso  EP3Q2008EarningsFINAL(Web)
el paso EP3Q2008EarningsFINAL(Web)finance49
 
Hexion CSFBConferenceMarch2008Final
Hexion CSFBConferenceMarch2008FinalHexion CSFBConferenceMarch2008Final
Hexion CSFBConferenceMarch2008Finalfinance36
 
Genworth MI Canada Inc. 2012 Investor Day Presentation
Genworth MI Canada Inc.  2012 Investor Day PresentationGenworth MI Canada Inc.  2012 Investor Day Presentation
Genworth MI Canada Inc. 2012 Investor Day Presentationgenworth_financial
 
United States: Innovation in Challenging Markets
United States: Innovation in Challenging MarketsUnited States: Innovation in Challenging Markets
United States: Innovation in Challenging Marketsjbarney23
 

What's hot (12)

PEG_Boston Investor Meeting
PEG_Boston Investor MeetingPEG_Boston Investor Meeting
PEG_Boston Investor Meeting
 
PEG_MorganStanley
PEG_MorganStanleyPEG_MorganStanley
PEG_MorganStanley
 
csx 2007_JP_Morgan_Conference-REF23640
csx  2007_JP_Morgan_Conference-REF23640csx  2007_JP_Morgan_Conference-REF23640
csx 2007_JP_Morgan_Conference-REF23640
 
Cabo presentation feb282011ppt(f)
Cabo presentation feb282011ppt(f)Cabo presentation feb282011ppt(f)
Cabo presentation feb282011ppt(f)
 
AES 2004 20 Financial 20Review20and20200520Outlook_FINAL
AES 2004 20 Financial 20Review20and20200520Outlook_FINALAES 2004 20 Financial 20Review20and20200520Outlook_FINAL
AES 2004 20 Financial 20Review20and20200520Outlook_FINAL
 
raytheon Investor Conference Presentation - Afternoon Session
raytheon	Investor Conference Presentation - Afternoon Sessionraytheon	Investor Conference Presentation - Afternoon Session
raytheon Investor Conference Presentation - Afternoon Session
 
Iochpe-Maxion - 4Q07 Presentation
Iochpe-Maxion - 4Q07 PresentationIochpe-Maxion - 4Q07 Presentation
Iochpe-Maxion - 4Q07 Presentation
 
public serviceenterprise group Citigroup
public serviceenterprise group Citigrouppublic serviceenterprise group Citigroup
public serviceenterprise group Citigroup
 
el paso EP3Q2008EarningsFINAL(Web)
el paso  EP3Q2008EarningsFINAL(Web)el paso  EP3Q2008EarningsFINAL(Web)
el paso EP3Q2008EarningsFINAL(Web)
 
Hexion CSFBConferenceMarch2008Final
Hexion CSFBConferenceMarch2008FinalHexion CSFBConferenceMarch2008Final
Hexion CSFBConferenceMarch2008Final
 
Genworth MI Canada Inc. 2012 Investor Day Presentation
Genworth MI Canada Inc.  2012 Investor Day PresentationGenworth MI Canada Inc.  2012 Investor Day Presentation
Genworth MI Canada Inc. 2012 Investor Day Presentation
 
United States: Innovation in Challenging Markets
United States: Innovation in Challenging MarketsUnited States: Innovation in Challenging Markets
United States: Innovation in Challenging Markets
 

Viewers also liked

AES library.corporate
 AES library.corporate AES library.corporate
AES library.corporatefinance19
 
AES_Reports_Strong_Second_Quarter_Results
AES_Reports_Strong_Second_Quarter_ResultsAES_Reports_Strong_Second_Quarter_Results
AES_Reports_Strong_Second_Quarter_Resultsfinance19
 
AES Firs tQuarter Results
AES Firs tQuarter ResultsAES Firs tQuarter Results
AES Firs tQuarter Resultsfinance19
 
l3 comunications-Holdings-Bylaws
 l3 comunications-Holdings-Bylaws l3 comunications-Holdings-Bylaws
l3 comunications-Holdings-Bylawsfinance19
 
sun proxy statement 08
sun proxy statement 08sun proxy statement 08
sun proxy statement 08finance19
 
AES 2Q07 Form10Q
AES 2Q07 Form10QAES 2Q07 Form10Q
AES 2Q07 Form10Qfinance19
 
AES Proxy 06
AES Proxy 06AES Proxy 06
AES Proxy 06finance19
 
CBS 3Q 2008 Earnings Release
CBS 3Q 2008 Earnings ReleaseCBS 3Q 2008 Earnings Release
CBS 3Q 2008 Earnings Releasefinance19
 
AES Factbook 090903
AES Factbook 090903AES Factbook 090903
AES Factbook 090903finance19
 
AES library.corporate
 AES library.corporate AES library.corporate
AES library.corporatefinance19
 
sun proxy statemen 08
 sun proxy statemen 08 sun proxy statemen 08
sun proxy statemen 08finance19
 
CBS 3Q 2008 Earnings Release
CBS 3Q 2008 Earnings ReleaseCBS 3Q 2008 Earnings Release
CBS 3Q 2008 Earnings Releasefinance19
 
sun sun 10k 08
sun sun 10k 08sun sun 10k 08
sun sun 10k 08finance19
 

Viewers also liked (20)

AES library.corporate
 AES library.corporate AES library.corporate
AES library.corporate
 
AES_Reports_Strong_Second_Quarter_Results
AES_Reports_Strong_Second_Quarter_ResultsAES_Reports_Strong_Second_Quarter_Results
AES_Reports_Strong_Second_Quarter_Results
 
sun 10k 03
sun 10k 03sun 10k 03
sun 10k 03
 
AES Firs tQuarter Results
AES Firs tQuarter ResultsAES Firs tQuarter Results
AES Firs tQuarter Results
 
l3 comunications-Holdings-Bylaws
 l3 comunications-Holdings-Bylaws l3 comunications-Holdings-Bylaws
l3 comunications-Holdings-Bylaws
 
sun proxy statement 08
sun proxy statement 08sun proxy statement 08
sun proxy statement 08
 
AES 2Q07 Form10Q
AES 2Q07 Form10QAES 2Q07 Form10Q
AES 2Q07 Form10Q
 
2Q 2002 10Q
2Q 2002 10Q2Q 2002 10Q
2Q 2002 10Q
 
AES Proxy 06
AES Proxy 06AES Proxy 06
AES Proxy 06
 
CBS qr1q 01
CBS qr1q 01CBS qr1q 01
CBS qr1q 01
 
CBS 3Q 2008 Earnings Release
CBS 3Q 2008 Earnings ReleaseCBS 3Q 2008 Earnings Release
CBS 3Q 2008 Earnings Release
 
sun 10k 02
sun 10k 02sun 10k 02
sun 10k 02
 
L3 2003 10k
L3 2003 10kL3 2003 10k
L3 2003 10k
 
sun a r99
sun a r99sun a r99
sun a r99
 
AES_111403
AES_111403AES_111403
AES_111403
 
AES Factbook 090903
AES Factbook 090903AES Factbook 090903
AES Factbook 090903
 
AES library.corporate
 AES library.corporate AES library.corporate
AES library.corporate
 
sun proxy statemen 08
 sun proxy statemen 08 sun proxy statemen 08
sun proxy statemen 08
 
CBS 3Q 2008 Earnings Release
CBS 3Q 2008 Earnings ReleaseCBS 3Q 2008 Earnings Release
CBS 3Q 2008 Earnings Release
 
sun sun 10k 08
sun sun 10k 08sun sun 10k 08
sun sun 10k 08
 

Similar to AES 3Q 07 Review

ameren InvestorMeetings_0308
ameren InvestorMeetings_0308ameren InvestorMeetings_0308
ameren InvestorMeetings_0308finance30
 
shaw group 8C04E297-E3DD-4F1E-8BB2-56C5BB51CEDA_SGR_AnnualShareholdersMeeting...
shaw group 8C04E297-E3DD-4F1E-8BB2-56C5BB51CEDA_SGR_AnnualShareholdersMeeting...shaw group 8C04E297-E3DD-4F1E-8BB2-56C5BB51CEDA_SGR_AnnualShareholdersMeeting...
shaw group 8C04E297-E3DD-4F1E-8BB2-56C5BB51CEDA_SGR_AnnualShareholdersMeeting...finance36
 
raytheon Q4 Earnings Presentation
raytheon Q4 Earnings Presentationraytheon Q4 Earnings Presentation
raytheon Q4 Earnings Presentationfinance12
 
AES 4Q 07 Review
AES 4Q 07 ReviewAES 4Q 07 Review
AES 4Q 07 Reviewfinance19
 
merck 3Q08 Earnings Release
merck  	3Q08 Earnings Release merck  	3Q08 Earnings Release
merck 3Q08 Earnings Release finance11
 
merck 3Q08 Earnings Announcement
merck 3Q08 Earnings Announcementmerck 3Q08 Earnings Announcement
merck 3Q08 Earnings Announcementfinance11
 
raytheon Q4 Earnings Presentation
raytheon Q4 Earnings Presentationraytheon Q4 Earnings Presentation
raytheon Q4 Earnings Presentationfinance12
 
Ge Q4 2008 Financial Results
Ge Q4 2008 Financial ResultsGe Q4 2008 Financial Results
Ge Q4 2008 Financial Resultsearningsreport
 
AES 2Q07 Review
AES 2Q07 ReviewAES 2Q07 Review
AES 2Q07 Reviewfinance19
 
goodrich 2Q08_Slides
goodrich  2Q08_Slidesgoodrich  2Q08_Slides
goodrich 2Q08_Slidesfinance44
 
goodrich 2Q08_Slides
goodrich  2Q08_Slidesgoodrich  2Q08_Slides
goodrich 2Q08_Slidesfinance44
 
AES 2Q 08 Review
AES 2Q 08 ReviewAES 2Q 08 Review
AES 2Q 08 Reviewfinance19
 
el paso EP3Q2008EarningsFINAL(Web)
el paso  EP3Q2008EarningsFINAL(Web)el paso  EP3Q2008EarningsFINAL(Web)
el paso EP3Q2008EarningsFINAL(Web)finance49
 
spectra energy Release050608
spectra energy Release050608spectra energy Release050608
spectra energy Release050608finance49
 
monsanto 11-08-07-1_v2
monsanto 11-08-07-1_v2monsanto 11-08-07-1_v2
monsanto 11-08-07-1_v2finance28
 
northrop grumman Q3 08 Earnings Presentation
northrop grumman	Q3 08 Earnings Presentationnorthrop grumman	Q3 08 Earnings Presentation
northrop grumman Q3 08 Earnings Presentationfinance8
 
northrop grumman Slide Presentation 2008 3rd
northrop grumman  Slide Presentation 2008 3rdnorthrop grumman  Slide Presentation 2008 3rd
northrop grumman Slide Presentation 2008 3rdfinance8
 
northrop grumman Slide Presentation 2007 3rd
northrop grumman  Slide Presentation 2007 3rdnorthrop grumman  Slide Presentation 2007 3rd
northrop grumman Slide Presentation 2007 3rdfinance8
 
Honeywell Q2 2007 Earnings Conference Call Presentation
Honeywell 	 Q2 2007 Earnings Conference Call PresentationHoneywell 	 Q2 2007 Earnings Conference Call Presentation
Honeywell Q2 2007 Earnings Conference Call Presentationfinance8
 
monsanto 01-08-08
monsanto 01-08-08monsanto 01-08-08
monsanto 01-08-08finance28
 

Similar to AES 3Q 07 Review (20)

ameren InvestorMeetings_0308
ameren InvestorMeetings_0308ameren InvestorMeetings_0308
ameren InvestorMeetings_0308
 
shaw group 8C04E297-E3DD-4F1E-8BB2-56C5BB51CEDA_SGR_AnnualShareholdersMeeting...
shaw group 8C04E297-E3DD-4F1E-8BB2-56C5BB51CEDA_SGR_AnnualShareholdersMeeting...shaw group 8C04E297-E3DD-4F1E-8BB2-56C5BB51CEDA_SGR_AnnualShareholdersMeeting...
shaw group 8C04E297-E3DD-4F1E-8BB2-56C5BB51CEDA_SGR_AnnualShareholdersMeeting...
 
raytheon Q4 Earnings Presentation
raytheon Q4 Earnings Presentationraytheon Q4 Earnings Presentation
raytheon Q4 Earnings Presentation
 
AES 4Q 07 Review
AES 4Q 07 ReviewAES 4Q 07 Review
AES 4Q 07 Review
 
merck 3Q08 Earnings Release
merck  	3Q08 Earnings Release merck  	3Q08 Earnings Release
merck 3Q08 Earnings Release
 
merck 3Q08 Earnings Announcement
merck 3Q08 Earnings Announcementmerck 3Q08 Earnings Announcement
merck 3Q08 Earnings Announcement
 
raytheon Q4 Earnings Presentation
raytheon Q4 Earnings Presentationraytheon Q4 Earnings Presentation
raytheon Q4 Earnings Presentation
 
Ge Q4 2008 Financial Results
Ge Q4 2008 Financial ResultsGe Q4 2008 Financial Results
Ge Q4 2008 Financial Results
 
AES 2Q07 Review
AES 2Q07 ReviewAES 2Q07 Review
AES 2Q07 Review
 
goodrich 2Q08_Slides
goodrich  2Q08_Slidesgoodrich  2Q08_Slides
goodrich 2Q08_Slides
 
goodrich 2Q08_Slides
goodrich  2Q08_Slidesgoodrich  2Q08_Slides
goodrich 2Q08_Slides
 
AES 2Q 08 Review
AES 2Q 08 ReviewAES 2Q 08 Review
AES 2Q 08 Review
 
el paso EP3Q2008EarningsFINAL(Web)
el paso  EP3Q2008EarningsFINAL(Web)el paso  EP3Q2008EarningsFINAL(Web)
el paso EP3Q2008EarningsFINAL(Web)
 
spectra energy Release050608
spectra energy Release050608spectra energy Release050608
spectra energy Release050608
 
monsanto 11-08-07-1_v2
monsanto 11-08-07-1_v2monsanto 11-08-07-1_v2
monsanto 11-08-07-1_v2
 
northrop grumman Q3 08 Earnings Presentation
northrop grumman	Q3 08 Earnings Presentationnorthrop grumman	Q3 08 Earnings Presentation
northrop grumman Q3 08 Earnings Presentation
 
northrop grumman Slide Presentation 2008 3rd
northrop grumman  Slide Presentation 2008 3rdnorthrop grumman  Slide Presentation 2008 3rd
northrop grumman Slide Presentation 2008 3rd
 
northrop grumman Slide Presentation 2007 3rd
northrop grumman  Slide Presentation 2007 3rdnorthrop grumman  Slide Presentation 2007 3rd
northrop grumman Slide Presentation 2007 3rd
 
Honeywell Q2 2007 Earnings Conference Call Presentation
Honeywell 	 Q2 2007 Earnings Conference Call PresentationHoneywell 	 Q2 2007 Earnings Conference Call Presentation
Honeywell Q2 2007 Earnings Conference Call Presentation
 
monsanto 01-08-08
monsanto 01-08-08monsanto 01-08-08
monsanto 01-08-08
 

More from finance19

pepsi bottling Q1 Non-Gaap
  	 pepsi bottling  Q1 Non-Gaap  	 pepsi bottling  Q1 Non-Gaap
pepsi bottling Q1 Non-Gaapfinance19
 
pepsi bottling 071007nong
  	 pepsi bottling  071007nong  	 pepsi bottling  071007nong
pepsi bottling 071007nongfinance19
 
pepsi bottling pbg Non Gaap
  	 pepsi bottling  pbg Non Gaap  	 pepsi bottling  pbg Non Gaap
pepsi bottling pbg Non Gaapfinance19
 
pepsi bottling Non Gaap Investor Day121307
  	 pepsi bottling  Non Gaap Investor Day121307  	 pepsi bottling  Non Gaap Investor Day121307
pepsi bottling Non Gaap Investor Day121307finance19
 
pepsi bottling 4Q Non Gaap
  	 pepsi bottling  4Q Non Gaap  	 pepsi bottling  4Q Non Gaap
pepsi bottling 4Q Non Gaapfinance19
 
pepsi bottling Q108_NonGAAPReconciliation
  	 pepsi bottling  Q108_NonGAAPReconciliation  	 pepsi bottling  Q108_NonGAAPReconciliation
pepsi bottling Q108_NonGAAPReconciliationfinance19
 
pepsi bottling 2Q 08 Non GAAP
  	 pepsi bottling  2Q 08 Non GAAP  	 pepsi bottling  2Q 08 Non GAAP
pepsi bottling 2Q 08 Non GAAPfinance19
 
pepsi bottling Non GAA P0908
  	 pepsi bottling  Non GAA P0908  	 pepsi bottling  Non GAA P0908
pepsi bottling Non GAA P0908finance19
 
pepsi bottling library.corporate
  	 pepsi bottling library.corporate  	 pepsi bottling library.corporate
pepsi bottling library.corporatefinance19
 
pepsi bottling library.corporate
  	 pepsi bottling library.corporate  	 pepsi bottling library.corporate
pepsi bottling library.corporatefinance19
 
pepsi bottling library.corporate
  	 pepsi bottling library.corporate  	 pepsi bottling library.corporate
pepsi bottling library.corporatefinance19
 
pepsi bottling ar2000
pepsi bottling ar2000pepsi bottling ar2000
pepsi bottling ar2000finance19
 
pepsi bottlingar 01
pepsi bottlingar 01pepsi bottlingar 01
pepsi bottlingar 01finance19
 
pepsi bottling 2002
pepsi bottling 2002pepsi bottling 2002
pepsi bottling 2002finance19
 
pepsi bottling 03AR
pepsi bottling 03ARpepsi bottling 03AR
pepsi bottling 03ARfinance19
 
pepsi bottling AR 04
pepsi bottling AR 04pepsi bottling AR 04
pepsi bottling AR 04finance19
 
pepsi bottling AR_2005
pepsi bottling AR_2005pepsi bottling AR_2005
pepsi bottling AR_2005finance19
 
pepsi bottling AR_2006
pepsi bottling AR_2006pepsi bottling AR_2006
pepsi bottling AR_2006finance19
 
WorldFuel2002 Transition Annual Report
WorldFuel2002 Transition Annual ReportWorldFuel2002 Transition Annual Report
WorldFuel2002 Transition Annual Reportfinance19
 
WorldFuel 2002 Transition AnnualReport
WorldFuel 2002 Transition AnnualReportWorldFuel 2002 Transition AnnualReport
WorldFuel 2002 Transition AnnualReportfinance19
 

More from finance19 (20)

pepsi bottling Q1 Non-Gaap
  	 pepsi bottling  Q1 Non-Gaap  	 pepsi bottling  Q1 Non-Gaap
pepsi bottling Q1 Non-Gaap
 
pepsi bottling 071007nong
  	 pepsi bottling  071007nong  	 pepsi bottling  071007nong
pepsi bottling 071007nong
 
pepsi bottling pbg Non Gaap
  	 pepsi bottling  pbg Non Gaap  	 pepsi bottling  pbg Non Gaap
pepsi bottling pbg Non Gaap
 
pepsi bottling Non Gaap Investor Day121307
  	 pepsi bottling  Non Gaap Investor Day121307  	 pepsi bottling  Non Gaap Investor Day121307
pepsi bottling Non Gaap Investor Day121307
 
pepsi bottling 4Q Non Gaap
  	 pepsi bottling  4Q Non Gaap  	 pepsi bottling  4Q Non Gaap
pepsi bottling 4Q Non Gaap
 
pepsi bottling Q108_NonGAAPReconciliation
  	 pepsi bottling  Q108_NonGAAPReconciliation  	 pepsi bottling  Q108_NonGAAPReconciliation
pepsi bottling Q108_NonGAAPReconciliation
 
pepsi bottling 2Q 08 Non GAAP
  	 pepsi bottling  2Q 08 Non GAAP  	 pepsi bottling  2Q 08 Non GAAP
pepsi bottling 2Q 08 Non GAAP
 
pepsi bottling Non GAA P0908
  	 pepsi bottling  Non GAA P0908  	 pepsi bottling  Non GAA P0908
pepsi bottling Non GAA P0908
 
pepsi bottling library.corporate
  	 pepsi bottling library.corporate  	 pepsi bottling library.corporate
pepsi bottling library.corporate
 
pepsi bottling library.corporate
  	 pepsi bottling library.corporate  	 pepsi bottling library.corporate
pepsi bottling library.corporate
 
pepsi bottling library.corporate
  	 pepsi bottling library.corporate  	 pepsi bottling library.corporate
pepsi bottling library.corporate
 
pepsi bottling ar2000
pepsi bottling ar2000pepsi bottling ar2000
pepsi bottling ar2000
 
pepsi bottlingar 01
pepsi bottlingar 01pepsi bottlingar 01
pepsi bottlingar 01
 
pepsi bottling 2002
pepsi bottling 2002pepsi bottling 2002
pepsi bottling 2002
 
pepsi bottling 03AR
pepsi bottling 03ARpepsi bottling 03AR
pepsi bottling 03AR
 
pepsi bottling AR 04
pepsi bottling AR 04pepsi bottling AR 04
pepsi bottling AR 04
 
pepsi bottling AR_2005
pepsi bottling AR_2005pepsi bottling AR_2005
pepsi bottling AR_2005
 
pepsi bottling AR_2006
pepsi bottling AR_2006pepsi bottling AR_2006
pepsi bottling AR_2006
 
WorldFuel2002 Transition Annual Report
WorldFuel2002 Transition Annual ReportWorldFuel2002 Transition Annual Report
WorldFuel2002 Transition Annual Report
 
WorldFuel 2002 Transition AnnualReport
WorldFuel 2002 Transition AnnualReportWorldFuel 2002 Transition AnnualReport
WorldFuel 2002 Transition AnnualReport
 

Recently uploaded

Independent Call Girl Number in Kurla Mumbai📲 Pooja Nehwal 9892124323 💞 Full ...
Independent Call Girl Number in Kurla Mumbai📲 Pooja Nehwal 9892124323 💞 Full ...Independent Call Girl Number in Kurla Mumbai📲 Pooja Nehwal 9892124323 💞 Full ...
Independent Call Girl Number in Kurla Mumbai📲 Pooja Nehwal 9892124323 💞 Full ...Pooja Nehwal
 
VIP Call Girls LB Nagar ( Hyderabad ) Phone 8250192130 | ₹5k To 25k With Room...
VIP Call Girls LB Nagar ( Hyderabad ) Phone 8250192130 | ₹5k To 25k With Room...VIP Call Girls LB Nagar ( Hyderabad ) Phone 8250192130 | ₹5k To 25k With Room...
VIP Call Girls LB Nagar ( Hyderabad ) Phone 8250192130 | ₹5k To 25k With Room...Suhani Kapoor
 
20240429 Calibre April 2024 Investor Presentation.pdf
20240429 Calibre April 2024 Investor Presentation.pdf20240429 Calibre April 2024 Investor Presentation.pdf
20240429 Calibre April 2024 Investor Presentation.pdfAdnet Communications
 
High Class Call Girls Nashik Maya 7001305949 Independent Escort Service Nashik
High Class Call Girls Nashik Maya 7001305949 Independent Escort Service NashikHigh Class Call Girls Nashik Maya 7001305949 Independent Escort Service Nashik
High Class Call Girls Nashik Maya 7001305949 Independent Escort Service NashikCall Girls in Nagpur High Profile
 
Quantitative Analysis of Retail Sector Companies
Quantitative Analysis of Retail Sector CompaniesQuantitative Analysis of Retail Sector Companies
Quantitative Analysis of Retail Sector Companiesprashantbhati354
 
Interimreport1 January–31 March2024 Elo Mutual Pension Insurance Company
Interimreport1 January–31 March2024 Elo Mutual Pension Insurance CompanyInterimreport1 January–31 March2024 Elo Mutual Pension Insurance Company
Interimreport1 January–31 March2024 Elo Mutual Pension Insurance CompanyTyöeläkeyhtiö Elo
 
(TANVI) Call Girls Nanded City ( 7001035870 ) HI-Fi Pune Escorts Service
(TANVI) Call Girls Nanded City ( 7001035870 ) HI-Fi Pune Escorts Service(TANVI) Call Girls Nanded City ( 7001035870 ) HI-Fi Pune Escorts Service
(TANVI) Call Girls Nanded City ( 7001035870 ) HI-Fi Pune Escorts Serviceranjana rawat
 
Dividend Policy and Dividend Decision Theories.pptx
Dividend Policy and Dividend Decision Theories.pptxDividend Policy and Dividend Decision Theories.pptx
Dividend Policy and Dividend Decision Theories.pptxanshikagoel52
 
VIP High Class Call Girls Saharanpur Anushka 8250192130 Independent Escort Se...
VIP High Class Call Girls Saharanpur Anushka 8250192130 Independent Escort Se...VIP High Class Call Girls Saharanpur Anushka 8250192130 Independent Escort Se...
VIP High Class Call Girls Saharanpur Anushka 8250192130 Independent Escort Se...Suhani Kapoor
 
VIP Kolkata Call Girl Jodhpur Park 👉 8250192130 Available With Room
VIP Kolkata Call Girl Jodhpur Park 👉 8250192130  Available With RoomVIP Kolkata Call Girl Jodhpur Park 👉 8250192130  Available With Room
VIP Kolkata Call Girl Jodhpur Park 👉 8250192130 Available With Roomdivyansh0kumar0
 
New dynamic economic model with a digital footprint | European Business Review
New dynamic economic model with a digital footprint | European Business ReviewNew dynamic economic model with a digital footprint | European Business Review
New dynamic economic model with a digital footprint | European Business ReviewAntonis Zairis
 
Shrambal_Distributors_Newsletter_Apr-2024 (1).pdf
Shrambal_Distributors_Newsletter_Apr-2024 (1).pdfShrambal_Distributors_Newsletter_Apr-2024 (1).pdf
Shrambal_Distributors_Newsletter_Apr-2024 (1).pdfvikashdidwania1
 
Chapter 2.ppt of macroeconomics by mankiw 9th edition
Chapter 2.ppt of macroeconomics by mankiw 9th editionChapter 2.ppt of macroeconomics by mankiw 9th edition
Chapter 2.ppt of macroeconomics by mankiw 9th editionMuhammadHusnain82237
 
Q3 2024 Earnings Conference Call and Webcast Slides
Q3 2024 Earnings Conference Call and Webcast SlidesQ3 2024 Earnings Conference Call and Webcast Slides
Q3 2024 Earnings Conference Call and Webcast SlidesMarketing847413
 
VIP Call Girls Thane Sia 8617697112 Independent Escort Service Thane
VIP Call Girls Thane Sia 8617697112 Independent Escort Service ThaneVIP Call Girls Thane Sia 8617697112 Independent Escort Service Thane
VIP Call Girls Thane Sia 8617697112 Independent Escort Service ThaneCall girls in Ahmedabad High profile
 
fca-bsps-decision-letter-redacted (1).pdf
fca-bsps-decision-letter-redacted (1).pdffca-bsps-decision-letter-redacted (1).pdf
fca-bsps-decision-letter-redacted (1).pdfHenry Tapper
 
How Automation is Driving Efficiency Through the Last Mile of Reporting
How Automation is Driving Efficiency Through the Last Mile of ReportingHow Automation is Driving Efficiency Through the Last Mile of Reporting
How Automation is Driving Efficiency Through the Last Mile of ReportingAggregage
 
Dharavi Russian callg Girls, { 09892124323 } || Call Girl In Mumbai ...
Dharavi Russian callg Girls, { 09892124323 } || Call Girl In Mumbai ...Dharavi Russian callg Girls, { 09892124323 } || Call Girl In Mumbai ...
Dharavi Russian callg Girls, { 09892124323 } || Call Girl In Mumbai ...Pooja Nehwal
 

Recently uploaded (20)

Independent Call Girl Number in Kurla Mumbai📲 Pooja Nehwal 9892124323 💞 Full ...
Independent Call Girl Number in Kurla Mumbai📲 Pooja Nehwal 9892124323 💞 Full ...Independent Call Girl Number in Kurla Mumbai📲 Pooja Nehwal 9892124323 💞 Full ...
Independent Call Girl Number in Kurla Mumbai📲 Pooja Nehwal 9892124323 💞 Full ...
 
VIP Call Girls LB Nagar ( Hyderabad ) Phone 8250192130 | ₹5k To 25k With Room...
VIP Call Girls LB Nagar ( Hyderabad ) Phone 8250192130 | ₹5k To 25k With Room...VIP Call Girls LB Nagar ( Hyderabad ) Phone 8250192130 | ₹5k To 25k With Room...
VIP Call Girls LB Nagar ( Hyderabad ) Phone 8250192130 | ₹5k To 25k With Room...
 
20240429 Calibre April 2024 Investor Presentation.pdf
20240429 Calibre April 2024 Investor Presentation.pdf20240429 Calibre April 2024 Investor Presentation.pdf
20240429 Calibre April 2024 Investor Presentation.pdf
 
High Class Call Girls Nashik Maya 7001305949 Independent Escort Service Nashik
High Class Call Girls Nashik Maya 7001305949 Independent Escort Service NashikHigh Class Call Girls Nashik Maya 7001305949 Independent Escort Service Nashik
High Class Call Girls Nashik Maya 7001305949 Independent Escort Service Nashik
 
Quantitative Analysis of Retail Sector Companies
Quantitative Analysis of Retail Sector CompaniesQuantitative Analysis of Retail Sector Companies
Quantitative Analysis of Retail Sector Companies
 
Interimreport1 January–31 March2024 Elo Mutual Pension Insurance Company
Interimreport1 January–31 March2024 Elo Mutual Pension Insurance CompanyInterimreport1 January–31 March2024 Elo Mutual Pension Insurance Company
Interimreport1 January–31 March2024 Elo Mutual Pension Insurance Company
 
(TANVI) Call Girls Nanded City ( 7001035870 ) HI-Fi Pune Escorts Service
(TANVI) Call Girls Nanded City ( 7001035870 ) HI-Fi Pune Escorts Service(TANVI) Call Girls Nanded City ( 7001035870 ) HI-Fi Pune Escorts Service
(TANVI) Call Girls Nanded City ( 7001035870 ) HI-Fi Pune Escorts Service
 
Dividend Policy and Dividend Decision Theories.pptx
Dividend Policy and Dividend Decision Theories.pptxDividend Policy and Dividend Decision Theories.pptx
Dividend Policy and Dividend Decision Theories.pptx
 
VIP High Class Call Girls Saharanpur Anushka 8250192130 Independent Escort Se...
VIP High Class Call Girls Saharanpur Anushka 8250192130 Independent Escort Se...VIP High Class Call Girls Saharanpur Anushka 8250192130 Independent Escort Se...
VIP High Class Call Girls Saharanpur Anushka 8250192130 Independent Escort Se...
 
VIP Kolkata Call Girl Jodhpur Park 👉 8250192130 Available With Room
VIP Kolkata Call Girl Jodhpur Park 👉 8250192130  Available With RoomVIP Kolkata Call Girl Jodhpur Park 👉 8250192130  Available With Room
VIP Kolkata Call Girl Jodhpur Park 👉 8250192130 Available With Room
 
New dynamic economic model with a digital footprint | European Business Review
New dynamic economic model with a digital footprint | European Business ReviewNew dynamic economic model with a digital footprint | European Business Review
New dynamic economic model with a digital footprint | European Business Review
 
Shrambal_Distributors_Newsletter_Apr-2024 (1).pdf
Shrambal_Distributors_Newsletter_Apr-2024 (1).pdfShrambal_Distributors_Newsletter_Apr-2024 (1).pdf
Shrambal_Distributors_Newsletter_Apr-2024 (1).pdf
 
Chapter 2.ppt of macroeconomics by mankiw 9th edition
Chapter 2.ppt of macroeconomics by mankiw 9th editionChapter 2.ppt of macroeconomics by mankiw 9th edition
Chapter 2.ppt of macroeconomics by mankiw 9th edition
 
Q3 2024 Earnings Conference Call and Webcast Slides
Q3 2024 Earnings Conference Call and Webcast SlidesQ3 2024 Earnings Conference Call and Webcast Slides
Q3 2024 Earnings Conference Call and Webcast Slides
 
🔝+919953056974 🔝young Delhi Escort service Pusa Road
🔝+919953056974 🔝young Delhi Escort service Pusa Road🔝+919953056974 🔝young Delhi Escort service Pusa Road
🔝+919953056974 🔝young Delhi Escort service Pusa Road
 
VIP Call Girls Thane Sia 8617697112 Independent Escort Service Thane
VIP Call Girls Thane Sia 8617697112 Independent Escort Service ThaneVIP Call Girls Thane Sia 8617697112 Independent Escort Service Thane
VIP Call Girls Thane Sia 8617697112 Independent Escort Service Thane
 
fca-bsps-decision-letter-redacted (1).pdf
fca-bsps-decision-letter-redacted (1).pdffca-bsps-decision-letter-redacted (1).pdf
fca-bsps-decision-letter-redacted (1).pdf
 
How Automation is Driving Efficiency Through the Last Mile of Reporting
How Automation is Driving Efficiency Through the Last Mile of ReportingHow Automation is Driving Efficiency Through the Last Mile of Reporting
How Automation is Driving Efficiency Through the Last Mile of Reporting
 
Commercial Bank Economic Capsule - April 2024
Commercial Bank Economic Capsule - April 2024Commercial Bank Economic Capsule - April 2024
Commercial Bank Economic Capsule - April 2024
 
Dharavi Russian callg Girls, { 09892124323 } || Call Girl In Mumbai ...
Dharavi Russian callg Girls, { 09892124323 } || Call Girl In Mumbai ...Dharavi Russian callg Girls, { 09892124323 } || Call Girl In Mumbai ...
Dharavi Russian callg Girls, { 09892124323 } || Call Girl In Mumbai ...
 

AES 3Q 07 Review

  • 1. »AES Corporation Third Quarter 2007 Financial Review November 7, 2007
  • 2. » Safe Harbor Disclosure Certain statements in the following presentation regarding AES’s 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’s current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, 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 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’s filings with the Securities and Exchange Commission including but not limited to the risks discussed under Item 1A “Risk Factors” in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2006, 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. AES Corporation 1 Third Quarter 2007 Financial Review
  • 3. » Highlights › Q3 Revenues up 18% to $3.5 Billion and Gross Margin up 2% to $840 Million › Q3 and year-to-date Adjusted EPS of $0.18 and $0.82 – Q3 reflects impacts of higher costs and lower volumes in Chile & Argentina, partially offset by operational improvements in North America and contributions from new businesses › Excluding the impacts of EDC, sold in May 2007: –3Q07 net cash from operating activities would have decreased by $19 million to $741 million and free cash flow would have increased by $20 million to $573 million –For the first nine months of 2007, net cash from operating activities would have increased by $162 million to $1.8 billion and free cash flow would have increased by $81 million to $1.2 billion › Portfolio and Capital Structure Optimization Plans on Track – Sold 10% stake in Chilean subsidiary (Gener) for approximately $300 million – Issued $2 billion unsecured notes, primarily to refinance 2nd Lien notes › On Track to Achieve our 2011 Growth Targets – Announced as Winner of Bids in Philippines and South Africa totaling 1,762 MW – Announced Commencement of Construction of 170 MW Expansion to Buffalo Gap Wind Farm (Buffalo Gap 3) AES Corporation 2 Third Quarter 2007 Financial Review
  • 4. » Recent Parent Refinancing Improves Maturity Profile Contains Forward Looking Statements › The refinancing of our 2008 Unsecured notes and our 2nd lien notes will: –Decrease secured debt as a percentage of total parent debt from 41% to approximately 17% –Raise the average life of parent debt from approximately 6.3 years to 7.6 years $1,500 $1,000 (millions) $500 $0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Beyond 2017 Parent Maturities as of 9/30/07 Pro Forma Maturities AES Corporation 3 Third Quarter 2007 Financial Review
  • 5. » Third Quarter 2007 Highlights ($ Millions Except Earnings Per Share and Percent) Third Third Consolidated Highlights % Change Quarter 2007 Quarter 2006 $3,471 $2,947 18% Revenues › Gross margin increased by $14 million to $840 million, primarily due to: 840 826 2% Gross Margin – Favorable foreign currency translation ~ $52 MM – Higher prices in North America and contributions from TEG and 400 (178) NA Income Before Taxes TEP in Mexico of ~ $47 MM and Minority Interest – Unfavorable impacts of gas curtailments and lower hydrology in (IBT & MI)(1) Argentina and Chile ~ $102 MM › Excluding the impacts of the Brazil restructuring in Q306, quarter- 0.14 (0.56) NA Diluted EPS from over-quarter differences in EPS primarily due to: Continuing Operations(2) – Operations in Argentina and Chile impacted both diluted and adjusted EPS by ~ ($0.07) 0.18 $0.30 (40%) EPS(3)(4) Adjusted – Impairments in North America businesses impacted diluted EPS by ~ ($0.03). No impact on adjusted EPS – Partially offset by higher prices in North America and 741 928 (20%) Net Cash from Operating contributions from new businesses Activities › Excluding contributions from EDC, net cash from operating activities would have decreased ~ $19 million. 573 732 (22%) Free Cash Flow(3) › Excluding contributions from EDC, free cash flow would have increased by ~ $20 million. (1)Third quarter 2006 income before taxes & minority interest includes impacts of ($554) million associated with the Brazil restructuring (2)Third quarter 2006 income from continuing operations and diluted earnings per share include after-tax impacts of ($500) million or ($0.76) per diluted share associated with the Brazil restructuring (3)A non-GAAP financial measure. See Appendix. (4)Third quarter 2006 adjusted earnings per share includes a one-time favorable benefit of $0.07 associated with the Brazil restructuring AES Corporation 4 Note: All prior period results in this presentation reflect businesses placed in discontinued operations effective March 31, 2007. Third Quarter 2007 Financial Review
  • 6. » Reconciliation of Adjusted Earnings Per Share(1) ($ Per Share) Nine Months Ended Third Quarter September 30, 2007 2007 2006 2007 2006 Diluted Earnings Per Share from Continuing $0.14 ($0.56) $0.71 $0.22 Operations FAS 133 Mark to Market (Gains)/Losses 0.01 0.02 0.02 - Currency Transaction (Gains)/Losses - 0.01 - 0.01 Net Asset (Gains)/Losses and Impairments 0.03 0.83 0.09 0.69 Debt Retirement (Gains)/Losses - - - 0.04 Adjusted Earnings Per Share(1) $0.18 $0.30 $0.82 $0.96 (1)Adjusted earnings per share (a non-GAAP financial measure) is defined as diluted earnings per share from continuing operations excluding gains or losses associated with (a) mark to market amounts related to FAS 133 derivative transactions, (b) foreign currency transaction impacts on the net monetary position related to Brazil and Argentina, (c) significant asset gains or losses due to disposition transactions and impairments, and (d) costs related to early retirement of recourse debt. AES believes that adjusted earnings per share better reflects the underlying business performance of the Company, and is considered in the Company’s internal evaluation of financial performance. Factors in this determination include the variability associated with mark-to-market gains or losses related to certain derivative transactions, currency transaction gains or losses, periodic strategic decisions to dispose of certain assets which may influence results in a given period, and the early retirement of corporate debt. AES Corporation 5 Third Quarter 2007 Financial Review
  • 7. » Third Quarter 2007 Bridge ($ Per Share) $0.76 $0.04 $0.03 $0.03 $0.18 ($0.02) ($0.07) $0.14 ($0.03) ($0.56) Brazil Chile & Improvements Higher Adjusted 3Q06 Diluted Impairments in 3Q07 Diluted 3Q07 Lower Non- Restructuring Argentina in Gross G&A EPS EPS from North EPS from Adjusted Operating Impacts(1) Margin(2) Expense(2) Factors(3) America(2) EPS(3) Operations Continuing Continuing Expense Impacts(2) Operations Operations › Unfavorable impacts of gas curtailments and lower hydrology in Argentina and Chile impacted results by approximately $0.07 › Other operational improvements, primarily due to higher prices in New York and the contributions of TEG/TEP in Mexico › Higher G&A, primarily due to increased spending to strengthen our financial infrastructure, including the accelerated implementation of SAP, and to support new business development initiatives (1)Calculated as $500 million divided by 658 million shares (2)Estimate, shown on a post-tax, ownership-adjusted basis (using consolidated effective tax rate) (3)A non-GAAP financial measure. See Appendix. AES Corporation 6 Third Quarter 2007 Financial Review
  • 8. » Cash Flow Highlights ($ Millions) Nine Months Ended Third Quarter September 30, 2007 2006 2007 2006 Consolidated Net Cash from Operating Activities(1) $741 $928 $1,848 $1,879 Maintenance Capital Expenditures: Operational Maintenance Capex(3) $112 $153 $508 $447 Environmental Capex(3) $56 $43 $171 $128 Less: Total Maintenance Capital Expenditures(3) $168 $196 $679 $575 Free Cash Flow(2)(3) $573 $732 $1,169 $1,304 › Excluding the impacts of EDC, net cash from operating activities would have decreased by $19 million for 3Q07 compared to 3Q06 and increased by $162 million for the first nine months of 2007 compared to the first nine months of 2006 › Excluding the impacts of EDC, free cash flow would have increased by $20 million for 3Q07 compared to 3Q06 and increased by $81 million for the first nine months of 2007 compared to the first nine months of 2006 (1)Excluding the impacts of EDC, net cash from operating activities would have been $760 million for 3Q06, $1,794 million for the first nine months of 2007 and $1,632 million for the first nine months of 2006 (2)Excluding the impacts of EDC, free cash flow would have been $553 million for 3Q06, $1,159 million for the first nine months of 2007 and $1,078 million for the first nine months of 2006 AES Corporation 7 (3)A non-GAAP financial measure. See Appendix. Third Quarter 2007 Financial Review
  • 9. » Subsidiary Distributions ($ Millions) Third Quarter/Nine Months Ended September 30, 2007 Subsidiary Distributions(1) North Europe & Other(2) Latin America Asia Total America Africa Utilities 42 / 116 57 / 174 -/1 -/- 99 / 291 Generation 150 / 268 24 / 39 45 / 102 35 / 43 254 / 452 Other 8 / 13 8 / 13 Total 192 / 384 81 / 213 45 / 103 35 / 43 8 / 13 361 / 756 Top 10 Nine Months Ended September 30, 2007 Subsidiary Distributions(1) Business Amount Segment Business Amount Segment New York 121 NA Generation Cartagena 35 E&A Generation IPALCO 116 NA Utilities Shady Point 29 NA Generation EDC(3) 97 LA Utilities Andres 24 LA Generation Brasiliana 77 LA Utilities Ekibastuz 24 E&A Generation Hawaii 42 NA Generation Southland 24 NA Generation (1)Anon-GAAP financial measure. See Appendix. (2)Otherincludes wind and other alternative energy projects AES Corporation 8 (3)AES sold its interest in EDC in second quarter 2007 Third Quarter 2007 Financial Review
  • 10. » Third Quarter Segment Highlights Latin America Generation ($ Millions except as noted) Third Quarter 2007 2006 % Change Segment Highlights › Latin America Generation revenue increased by Revenues $914 $685 33% $229 million to $914 million, primarily due to higher rates and volumes in Chile and Argentina Gross Margin 183 267 -31% of approximately $150 million and approximately $32 million in higher intercompany sales at Tiete IBT & MI 141 212 (33%) in Brazil. › Gross margin decreased by $84 million to $183 million, primarily impacted by gas supply curtailments and lower hydrology in Chile and Revenue Comparison (QOQ) % Change Argentina of approximately $102 million, partially offset by increased intercompany sales at Tiete. Volume/Price/Mix 31% › IBT&MI decreased by $71 million to $141 million, primarily due to gas supply curtailments New Businesses/Projects 0% and lower hydrology in Chile and Argentina, partially offset by increases in intercompany Currency (Net) 2% sales at Tiete. Total 33% AES Corporation 9 Third Quarter 2007 Financial Review
  • 11. » Third Quarter Segment Highlights Latin America Utilities ($ Millions except as noted) Third Quarter Segment Highlights 2007 2006 % Change › Latin America Utility revenue increased by $141 Revenues $1,311 $1,170 12% million to $1.3 billion, primarily due to approximately $135 million in favorable foreign Gross Margin 259 188 38% currency translation and approximately $26 million in increased volumes at Eletropaulo in IBT & MI 193 (444) 143% Brazil, partially offset by decreased rates at Eletropaulo due to the 2007 tariff reset. › Gross margin increased by $71 million to $259 million, primarily due to approximately $55 Revenue Comparison (QOQ) % Change million in favorable foreign currency translation and approximately $33 million in lower costs in Volume/Price/Mix 0% Brazil. New Businesses/Projects 0% › IBT&MI increased by $637 million to $193 million, primarily due to the $554 million charge Currency (Net) 12% in the third quarter of 2006 related to the Brazil restructuring as well as favorable foreign currency translation and lower costs in Brazil in Total 12% 2007. AES Corporation 10 Third Quarter 2007 Financial Review
  • 12. » Third Quarter Segment Highlights North America Generation ($ Millions except as noted) Third Quarter 2007 2006 % Change Segment Highlights › North America Generation revenue increased by Revenues $566 $490 16% $76 million to $566 million, primarily due to approximately $57 million in contributions from Gross Margin 196 149 32% the newly acquired TEG and TEP businesses in Mexico and approximately $25 million in higher IBT & MI 83 62 34% spot prices and volumes at Eastern Energy in New York. › Gross margin increased by $47 million to $196 million, primarily due to the higher prices and Revenue Comparison (QOQ) % Change volumes as well as lower costs at Eastern Energy, an impact of approximately $27 million, Volume/Price/Mix 4% and contributions from TEG and TEP of approximately $20 million. New Businesses/Projects(1) 12% › IBT&MI increased by $21 million, primarily due to higher prices and volumes as well as lower Currency (Net) 0% costs at Eastern Energy and contributions from TEG and TEP totaling approximately $47 million, Total 16% offset by $35 million of impairment expense at Placerita and Cavanal Minerals. (1)Includes TEG and TEP in Mexico AES Corporation 11 Third Quarter 2007 Financial Review
  • 13. » Third Quarter Segment Highlights North America Utilities ($ Millions except as noted) Third Quarter 2007 2006 % Change Segment Highlights › North America Utility revenue remained flat at Revenues $274 $274 0% $274 million. Gross Margin 86 89 (3%) › Consistent with revenues, gross margin remained relatively flat with a decrease of $3 IBT & MI 57 58 (2%) million to $86 million. › Consistent with revenues and gross margin, IBT&MI remained relatively flat with a decrease of $1 million to $57 million. Revenue Comparison (QOQ) % Change Volume/Price/Mix 0% New Businesses/Projects 0% Currency (Net) 0% Total 0% AES Corporation 12 Third Quarter 2007 Financial Review
  • 14. » Third Quarter Segment Highlights Europe & Africa Generation(1) ($ Millions except as noted) Third Quarter 2007 2006 % Change Segment Highlights › Europe & Africa Generation revenue increased Revenues $216 $196 10% by $20 million to $216 million, primarily due to increased rates and volumes of approximately Gross Margin 35 38 (8%) $15 million in Kazakhstan and approximately $3 million in favorable foreign currency translation. IBT & MI 26 13 100% › Gross margin decreased by $3 million, primarily due decreased sales of excess emission allowances in Hungary. › IBT&MI increased by $13 million to $26 million, Revenue Comparison (QOQ) % Change primarily due to $11 million in foreign currency Volume/Price/Mix 1% transaction losses in Kazakhstan during third quarter 2006. New Businesses/Projects 0% Currency (Net) 9% Total 10% (1)Includes CIS countries AES Corporation 13 Third Quarter 2007 Financial Review
  • 15. » Third Quarter Segment Highlights Europe & Africa Utilities(1) ($ Millions except as noted) Third Quarter 2007 2006 % Change Segment Highlights › Europe & Africa Utility revenue increased by $26 Revenues $157 $131 20% million to $157 million, primarily due to increased rates of approximately $14 million in Ukraine and Gross Margin 22 30 (27%) approximately $6 million in favorable foreign currency translation. IBT & MI 20 25 (20%) › Gross margins decreased by $8 million to $22 million, primarily due to the reversal of approximately $7 million in VAT tax accrual during third quarter 2006 at SONEL in Revenue Comparison (QOQ) % Change Cameroon. Volume/Price/Mix 15% › Consistent with gross margin, IBT&MI decreased by $5 million to $20 million primarily New Businesses/Projects 0% due to the reversal of the VAT tax accrual during the third quarter 2006 at SONEL in Cameroon. Currency (Net) 5% Total 20% (1)Includes CIS countries AES Corporation 14 Third Quarter 2007 Financial Review
  • 16. » Third Quarter Segment Highlights Asia Generation(1) ($ Millions except as noted) Third Quarter 2007 2006 % Change Segment Highlights › Asia Generation revenue increased by $44 Revenues $235 $191 23% million to $235 million, primarily due to higher dispatch in Pakistan and higher volume in Sri Gross Margin 47 53 (11%) Lanka. IBT & MI 35 40 (13%) › Gross margin decreased by $6 million to $47 million, primarily due to lower volumes in China. Increased revenue in Pakistan and Sri Lanka had a relatively flat impact on gross margin due to a related increase in costs. Revenue Comparison (QOQ) % Change › Consistent with gross margin, IBT&MI Volume/Price/Mix 22% decreased by $5 million to $35 million primarily due to lower volumes in China. New Businesses/Projects 0% Currency (Net) 1% Total 23% (1)Includes the Middle East AES Corporation 15 Third Quarter 2007 Financial Review
  • 17. » 2007 Guidance Update 2007 Full Year Nine Months Ended 2007 Guidance Element Guidance September 30, 2007 Gross Margin $3.5 to 3.6 billion $2.6 billion Income Before Tax & Minority Interest $2.0 to 2.1 billion $1.6 billion Diluted Earnings Per Share from Continuing Operations $1.04 $0.71 Adjusted Earnings Per Share Factors(1) $0.03 $0.11 Adjusted Earnings Per Share(1) $1.07 $0.82 Net Cash from Operating Activities $2.2 to 2.3 billion $1.8 billion Maintenance Capital Expenditures $0.9 to 1.0 billion $679 million Free Cash Flow(1) $1.2 to 1.4 billion $1.2 billion Growth Capital Expenditures $1.4 to 1.5 billion $1.1 billion Subsidiary Distributions(1)(2) $1.1 billion $756 million (1)A non-GAAP financial measure. See Appendix. (2)Includes dividends received from EDC of approximately $100 million AES Corporation 16 Third Quarter 2007 Financial Review
  • 18. » Appendix AES Corporation 17 Third Quarter 2007 Financial Review
  • 19. » Parent Sources and Uses of Cash Third Quarter Nine Months Ended ($ Millions) 2007 September 30, 2007 Sources Total Subsidiary Distributions(1) 361 756 Proceeds from Asset Sales, Net 54 789 Refinancing Proceeds, Net - - Increased Credit Facility Commitments - - Issuance of Common Stock, Net 5 30 Total Returns of Capital Distributions and Project Financing Proceeds 35 85 Beginning Liquidity(1) 1,378 1,146 Total Sources 1,833 2,806 Uses Repayments of Debt - - Investments in Subsidiaries, Net (174) (852) Cash for Development, Selling, General and Administrative and Taxes (89) (255) Cash Payments for Interest (83) (297) Changes in Letters of Credit and Other, Net 28 113 Ending Liquidity(1) (1,515) (1,515) Total Uses (1,833) (2,806) (1)A non-GAAP financial measure AES Corporation 18 Third Quarter 2007 Financial Review
  • 20. » Third Quarter 2007 Consolidated Cash Flow ($ Millions) 3Q ‘07 3Q ‘06 Net Cash Provided by Operating Activities(1)(2) $741 $928 Capital Expenditures (538) (445) Acquisitions, Net of Cash Acquired (60) - Proceeds from the Sale of Business 54 583 Proceeds from the Sales of Assets 5 3 Sale/(Purchase) of Short-Term Investments, Net 265 (115) Decrease in Restricted Cash 74 67 Proceeds from the Sale of Emission Allowances - 8 Purchase of Emission Allowances (1) (5) Decrease in Debt Service Reserves and Other Assets (46) (4) Repayment of Affiliate Loan 55 - Other Investing 4 13 (188) 105 Net Cash (Used in) Provided by Investing Activities Borrowings/(Repayments) under the Revolving Credit Facilities, Net 101 (39) Issuance of Non-Recourse Debt 371 237 Repayments of Non-Recourse Debt (538) (353) Payments of Deferred Financing Costs (15) (9) Distributions to Minority Interests (305) (85) Contributions from Minority Interests 34 - Issuance of Common Stock 7 31 Financed Capital Expenditures (19) (30) Other Financing 1 (4) Net Cash Used in Financing Activities (363) (252) Total Increase in Cash & Cash Equivalents 190 781 Effect of Exchange Rate Changes on Cash (4) (14) Cash & Cash Equivalents, Beginning 1,478 1,032 Cash & Cash Equivalents, Ending 1,664 1,799 (1)Depreciationand amortization from continuing operations was $238 million for 3Q07 and $211 million for 3Q06. (2)Depreciationand amortization from continuing operations was $686 million for the nine months ended September 30, 2007 and $623 million for the nine months ended September 30, 2006. Note: Certain amounts have been netted, condensed and rounded for presentation purposes. AES Corporation 19 Third Quarter 2007 Financial Review
  • 21. » Reconciliation of Subsidiary Distributions and Parent Liquidity ($ Millions) Quarter Ended Sept. 30, Jun. 30, Mar. 31, Dec. 31, 2007 2007 2007 2006 Total subsidiary Distributions $361 $259 $137 $311 Total returns of capital distributions 35 34 15 9 Total subsidiary distributions & returns of $396 $293 $152 $320 capital to Parent Balance as of Parent Company Liquidity(2) Sept. 30, Jun. 30, Mar. 31, Dec. 31, 2007 2007 2007 2006 Cash at Parent & QHCs(1)(2) $619 $405 $74 $257 Availability under revolver 896 973 804 889 Ending liquidity $1,515 $1,378 $878 $1,146 (1)Qualified Holding Company. See “Assumptions” (2)A non-GAAP financial measure AES Corporation 20 Third Quarter 2007 Financial Review
  • 22. » Assumptions 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 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 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 qualifying 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. 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’s indebtedness. AES Corporation 21 Third Quarter 2007 Financial Review
  • 23. » Definitions of Non-GAAP Financial Measures › Adjusted earnings per share – 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) early retirement of recourse 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 corporate debt. › Free cash flow – Defined as net cash flow from operating activities less maintenance capital expenditures (including environmental capital expenditures). Maintenance capital expenditures reflect property additions less growth 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. › Liquidity – Defined as cash at the parent company plus availability under corporate revolver plus cash at qualifying 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. › Subsidiary distributions – Defined as cash distributions (primarily dividends and interest income) from subsidiary companies to the parent company and qualified holding companies. AES believes subsidiary distributions are an important measure, as these cash flows are the source of cash flow to the parent to meet corporate interest, overhead, cash taxes, and discretionary uses such as recourse debt reductions and corporate investments. AES Corporation 22 Third Quarter 2007 Financial Review
  • 24. » Reconciliation of Cash Flow Items ($ Millions) Nine Months Ended Third Quarter September 30, 2007 2006 2007 2006 Capital Expenditures Maintenance Capital Expenditures $168 $196 $679 $575 Growth Capital Expenditures $389 $279 $1,076 $469 Capital Expenditures $557 $475 $1,755 $1,044 Nine Months Ended Third Quarter September 30, Reconciliation of Free Cash Flow 2007 2006 2007 2006 Net Cash from Operating Activities $741 $928 $1,848 $1,879 Less: Maintenance Capital Expenditures $168 $196 $679 $575 Free Cash Flow(1) $573 $732 $1,169 $1,304 AES Corporation 23 (1)A non-GAAP Financial Measure Third Quarter 2007 Financial Review
  • 25. » Reconciliation of Quarterly Adjusted Earnings per Share(1) 1Q06 2Q06 3Q06 4Q06 FY2006 1Q07 (Restated) (Restated) (Restated) (Restated) (Restated) (Restated) Diluted Earnings Per Share from $0.48 $0.29 ($0.56) ($0.02) $0.20 $0.17 Continuing Operations FAS 133 Mark to Market (0.01) (0.01) 0.02 - - 0.01 (Gains)/Losses Currency Transaction - - 0.01 (0.01) 0.01 - (Gains)/Losses Net Asset (Gains)/Losses and (0.13) - 0.83 - 0.68 0.05 Impairments Debt Retirement (Gains)/Losses 0.04 - - - 0.04 - Adjusted Earnings Per Share(1) $0.38 $0.28 $0.30 ($0.03) $0.93 $0.23 (1)A non-GAAP Financial Measure AES Corporation 24 Third Quarter 2007 Financial Review