Slide 1: The AES Corporation Second Quarter 2024 Financial Review
The AES Corporation Second Quarter 2024 Financial Review August 2, 2024
Slide 2: Safe Harbor Disclosure
CONTAINS FORWARD-LOOKING STATEMENTS Safe Harbor Disclosure Certain statements in the following presentation regarding AES’ business operations may constitute “forward-looking statements.” Such forward-looking statements include, but are not limited to, those related to future earnings, growth and fi
Slide 3: Results & Highlights
CONTAINS FORWARD-LOOKING STATEMENTS Results & Highlights Financial Results à Q2 2024 Adjusted EBITDA1 with Tax Attributes2 of $843 million à Q2 2024 Adjusted EBITDA1 of $652 million à Q2 2024 Adjusted EPS1 of $0.38 Strategic Highlights à Signed 2.5 GW of new agreements, including 2.2 GW directly wit
Slide 4: Signed Agreements for 1.2 GW of New Load from Data Centers
CONTAINS FORWARD-LOOKING STATEMENTS Signed Agreements for 1.2 GW1 of New Load from Data Centers Across US Utilities à In advanced negotiations across several sites to add up to another 3 GW of new load à Transformative for both utilities, with potential to increase peak load by >50% at AES Ohio and
Slide 5: Continued Progress Toward Upgrading & Transforming AES Indiana's Generation Fleet
CONTAINS FORWARD-LOOKING STATEMENTS Continued Progress Toward Upgrading & Transforming AES Indiana’s Generation Fleet à Agreed to acquire 170 MW solar-plus-storage development project, subject to approval by the Indiana Utility Regulatory Commission à ~$350 million in capex à COD expected in 2H 2027
Slide 6: Expanding Partnership with Google
CONTAINS FORWARD-LOOKING STATEMENTS Expanding Partnership with Google à Signed 727 MW of hybrid wind and solar PPAs • Expands into Texas to meet Google’s growing data center demand • Complementary technologies support Google’s 24/7 Carbon Free Energy (CFE) goals • Projects expected to come online in
Slide 7: 8.1 GW Signed Directly with Technology Customers
CONTAINS FORWARD-LOOKING STATEMENTS 8.1 GW Signed Directly with Technology Customers Capacity in GW 0.3 8.11 1.2 6.61 Other 1.5 1.7 3.1 Signed PPAs Load Growth Retail Supply Total 1. Includes agreements that have been signed directly with technology companies. PPAs are either in operation or in the
Slide 8: 12.6 GW Backlog of Projects Under Signed Long-Term PPAs
CONTAINS FORWARD-LOOKING STATEMENTS 12.6 GW Backlog of Projects Under Signed Long-Term PPAs YTD Signed 2.2 GW of PPAs and Completed 1.6 GW of Construction 12.6 60% Not Yet Under Construction GW 40% Under Construction Backlog of Signed PPAs Maximizing Quality of MW Over Quantity – Delivering High-Qua
Slide 9: AES is Best Positioned to Serve Growing Demand for Renewables
CONTAINS FORWARD-LOOKING STATEMENTS AES is Best Positioned to Serve Growing Demand for Renewables Data Center Demand1 Growing 22% Annually 2023-2030 (TWh) 24/7 Carbon-Free Energy by 2030 à Matching 100% of electricity with 606 renewables 4,640 371 4,270 147 100/100/0 Commitment by 2030 4,000 à Reach
Slide 10: On Track to Add 3.6 GW of New Projects to Operations in 2024
CONTAINS FORWARD-LOOKING STATEMENTS On Track to Add 3.6 GW of New Projects to Operations in 2024 à 1.6 GW added to operations in YTD 2024 à All major equipment is onsite; expect to have majority of panels for projects through 2026 onsite by the end of September 2024 Our Diversified & Resilient Suppl
Slide 11: Partnership with AI Fund to Accelerate AI-Driven Energy Solutions
CONTAINS FORWARD-LOOKING STATEMENTS Partnership with AI Fund to Accelerate AI-Driven Energy Solutions à Founded by AI leader, Andrew Ng, AI Fund is a venture studio that works with entrepreneurs to rapidly build companies à Expect to collaborate on co-building companies that leverage AI to address b
Slide 12: Developed First AI-Powered Solar Installation Robot
CONTAINS FORWARD-LOOKING STATEMENTS Developed First AI-Powered Solar Installation Robot à Launched Maximo, which uses computer vision and generative AI to efficiently install solar panels à Enables faster construction times that can reduce overall project costs à Utilizing Maximo to construct a port
Slide 13: Q2 2024 Financial Review
CONTAINS FORWARD-LOOKING STATEMENTS Q2 2024 Financial Review à Q2 2024 results à 2024 guidance à 2024 Parent capital allocation 13
Slide 14: Q2 2024 Financial Results
CONTAINS FORWARD-LOOKING STATEMENTS Q2 2024 Financial Results $ in Millions Adjusted EBITDA1 with Tax Attributes2 Ò Higher Adjusted EBITDA1 with Tax +$236 Attributes2 driven primarily by: • Contributions from new renewables $843 projects; • New rates and growth investment at our US utilities; and $6
Slide 15: Q2 2024 Adjusted EPS Increased $0.17
CONTAINS FORWARD-LOOKING STATEMENTS Q2 2024 Adjusted EPS1 Increased $0.17 $ Per Share $0.18 $0.38 $0.01 ($0.02) Q2 2023: 21% Q2 2024: 20% $0.21 + New projects + Rate base growth + Higher contributions from Energy Infrastructure SBU Q2 2023 SBUs/Corporate Parent Interest Tax 2 Q2 2024 1. A non-GAAP f
Slide 16: Q2 2024 Financial Results: Renewables
CONTAINS FORWARD-LOOKING STATEMENTS Q2 2024 Financial Results: Renewables $ in Millions Adjusted EBITDA1 with Tax Attributes2 Ò Higher Adjusted EBITDA1 with Tax Attributes2 driven primarily by +$115 contributions from new renewables $319 projects Ò Partially offset by forced outage in Colombia $204
Slide 17: Q2 2024 Financial Results: Utilities
CONTAINS FORWARD-LOOKING STATEMENTS Q2 2024 Financial Results: Utilities $ in Millions Adjusted PTC1 Ò Higher Adjusted PTC1 driven primarily by: +$62 • Rate base investment in the US; $83 • New rates at AES Indiana; • Load growth of 3.1% in the US; and • Favorable weather $21 Q2 2023 Q2 2024 1. A no
Slide 18: Q2 2024 Financial Results: Energy Infrastructure
CONTAINS FORWARD-LOOKING STATEMENTS Q2 2024 Financial Results: Energy Infrastructure $ in Millions Adjusted EBITDA1 Ò Higher Adjusted EBITDA1 driven +$28 primarily by: • Higher revenues due to the Warrior Run PPA monetization; and $310 • Improved margins in Chile $282 Ò Partially offset by: • Lower
Slide 19: Q2 2024 Financial Results: New Energy Technologies
CONTAINS FORWARD-LOOKING STATEMENTS Q2 2024 Financial Results: New Energy Technologies $ in Millions Adjusted EBITDA1 Ò Relatively flat Adjusted EBITDA1 driven primarily by development of early stage technology businesses Ò Partially offset by improved results at ($13) ($14) Fluence -$1 Q2 2023 Q2 2
Slide 20: Expect to be in the Top Half of 2024 Adjusted EBITDA with Tax Attributes Expectations
CONTAINS FORWARD-LOOKING STATEMENTS Expect to be in the Top Half of 2024 Adjusted EBITDA1 with Tax Attributes2 Expectations $ in Millions $3,550- $162 $3,950 $950- $458 $1,050 $3,423 ($157) ($106) $2,600- $2,900 + New projects − Prior year − 2023 and YTD + Rate base monetization of 2024 asset growth
Slide 21: Expect to be in Top Half of 2024 Adjusted EPS Guidance
CONTAINS FORWARD-LOOKING STATEMENTS Expect to be in Top Half of 2024 Adjusted EPS1 Guidance $ Per Share $0.46 $1.87- $0.01 $1.97 $1.76 ($0.17) ($0.05) ($0.06) 2023: 28% 2024: 23%-25% − Colombia margins − Southland margins − Prior year Warrior Run PPA monetization + New renewables projects + Utilitie
Slide 22: 2024 Parent Capital Allocation Plan
CONTAINS FORWARD-LOOKING STATEMENTS 2024 Parent Capital Allocation Plan: Expect 6% to 8% Parent Free Cash Flow1 Growth Through 20272 $ in Millions Discretionary Cash – Sources Discretionary Cash – Uses ($2,922-$3,222) ($2,922-$3,222) $900- $2,922- Shareholder $10 Ending Cash $1,100 $3,222 Dividend4
Slide 23: More Than Halfway Toward $3.5 Billion Asset Sale Proceeds Target
CONTAINS FORWARD-LOOKING STATEMENTS More Than Halfway1 Toward $3.5 Billion Asset Sale Proceeds Target for 2023-2027 $ in Billions $1.3 $3.5 à Announced sale of AES Brasil in May 2024 $2.2 • Proceeds of ~$640 million to be used to fund growth in renewables and US utilities • Simplification of portfol
Slide 24: Key Takeaways
CONTAINS FORWARD-LOOKING STATEMENTS Key Takeaways à Industry leader in serving technology customers • 8.1 GW of agreements signed directly with data centers, including 2.2 GW signed since Q1 2024 call in May • Continue to deliver projects on time and on budget, with 1.6 GW completed so far this year
Slide 25: Appendix
CONTAINS FORWARD-LOOKING STATEMENTS Appendix Parent Only Cash Flow & Liquidity Slides 26-28 Recourse & Non-Recourse Debt Slides 29-32 Q2 & YTD Adjusted EPS1 Roll-Up Slide 33 YTD Financial Results Slides 34-39 Listed Subsidiaries & Public Filers Slides 40-41 AES Modeling Disclosures Slides 42-45 2024
Slide 26: Parent Sources and Uses of Liquidity
CONTAINS FORWARD-LOOKING STATEMENTS Parent Sources and Uses of Liquidity Q2 YTD $ in Millions 2023 2024 2023 2024 Sources Total Subsidiary Distributions1 $205 $298 $476 $684 Proceeds from Asset Sales, Net - $11 - $26 Financing Proceeds, Net $890 $939 - $939 Increased/(Decreased) Credit Facility Comm
Slide 27: Q2 & YTD FY 2024 Subsidiary Distributions
CONTAINS FORWARD-LOOKING STATEMENTS Q2 & YTD FY 2024 Subsidiary Distributions1 $ in Millions Subsidiary Distributions1 by SBU Q2 2024 YTD Renewables $45 $94 Utilities $22 $41 Energy Infrastructure $191 $509 New Energy Technologies - - Corporate2 $40 $40 Total $298 $684 Top Subsidiary Distributions1
Slide 28: Reconciliation of Subsidiary Distributions and Parent Company Liquidity
CONTAINS FORWARD-LOOKING STATEMENTS Reconciliation of Subsidiary Distributions1 and Parent Company Liquidity1 $ in Millions Quarter Ended June 30, March 31, December 31, September 30, 2024 2024 2023 2023 Total Subsidiary Distributions1 to Parent & QHCs2 $298 $386 $536 $311 Total Return of Capital Di
Slide 29: Recourse Debt Summary
CONTAINS FORWARD-LOOKING STATEMENTS Recourse Debt Summary $ in Millions, Except Percentages; as of June 30, 2024 Principal Ratings SBU Balance Interest Rate Maturity Moody’s/S&P/Fitch Term SOFR + Parent Revolver Corporate $50 8/23/27 Baa3/BBB-/BBB- 1.750% Commercial Paper Corporate $692 Variable N/A
Slide 30: Q2 2024 Non-Recourse Debt Schedule
Q2 2024 Non-Recourse Debt1 Schedule $ in Millions, Except Percentages; as of June 30, 2024 Debt Maturity and Amortization Schedule June 30, 2024 June 30, Total Balance Ownership 2024 Total 2029 and SBU/Business Country/State 2024 2025 2026 2027 2028 (Ownership- Percentage Balance Thereafter Adjusted
Slide 31: Q2 2024 Non-Recourse Debt Schedule
Q2 2024 Non-Recourse Debt1 Schedule $ in Millions, Except Percentages; as of June 30, 2024 Debt Maturity and Amortization Schedule June 30, 2024 June 30, Total Balance Ownership 2024 Total 2029 And SBU/Business Country/State 2024 2025 2026 2027 2028 (Ownership- Percentage Balance Thereafter Adjusted
Slide 32: Substantial Majority of Interest Rate Exposure is Hedged
CONTAINS FORWARD-LOOKING STATEMENTS Substantial Majority of Interest Rate Exposure is Hedged Through Swaps or Contractual Arrangements $ in Millions, as of June 30, 2024 Recourse Debt Recourse Non-Recourse Debt2 Debt2 Long-Term Weighted $6,192 Average All-in Cost 4.2% 5.9% 22% Long-Term Weighted 8.4
Slide 33: Q2 & YTD Adjusted EPS Roll-Up
CONTAINS FORWARD-LOOKING STATEMENTS Q2 & YTD Adjusted EPS1 Roll-Up $ in Millions, Except Per Share Amounts Q2 2024 Q2 2023 Variance YTD 2024 YTD 2023 Variance Adjusted PTC1 Renewables $106 $106 - $241 $138 $103 Utilities $83 $21 $62 $124 $59 $65 Energy Infrastructure $163 $150 $13 $390 $361 $29 New
Slide 34: YTD 2024 Financial Results
CONTAINS FORWARD-LOOKING STATEMENTS YTD 2024 Financial Results $ in Millions Adjusted EBITDA1 with Tax Attributes2 Ò Higher Adjusted EBITDA1 with Tax Attributes2 driven primarily by: +$458 • Contributions from new renewables $1,706 projects; • New rates and growth investment at our US utilities; and
Slide 35: YTD 2024 Adjusted EPS Increased $0.46
CONTAINS FORWARD-LOOKING STATEMENTS YTD 2024 Adjusted EPS1 Increased $0.46 $ Per Share $0.08 $0.89 $0.41 ($0.03) YTD 2023: 22% YTD 2024: 13% $0.43 + New projects + Rate base growth + Higher contributions from Energy Infrastructure SBU YTD 2023 SBUs / Corp Parent Interest Tax 2 YTD 2024 1. A non-GAAP
Slide 36: YTD 2024 Financial Results: Renewables
CONTAINS FORWARD-LOOKING STATEMENTS YTD 2024 Financial Results: Renewables $ in Millions Adjusted EBITDA1 with Tax Attributes2 Ò Higher Adjusted EBITDA1 with Tax Attributes2 driven primarily by +$306 contributions from new renewables $647 projects Ò Partially offset by forced outage in Colombia $341
Slide 37: YTD 2024 Financial Results: Utilities
CONTAINS FORWARD-LOOKING STATEMENTS YTD 2024 Financial Results: Utilities $ in Millions Adjusted PTC1 Ò Higher Adjusted PTC1 driven primarily by: +$65 • Rate base investment in the US; • New rates at AES Indiana; $124 • Load growth in the US; and • Favorable weather $59 YTD 2023 YTD 2024 1. A non-GA
Slide 38: YTD 2024 Financial Results: Energy Infrastructure
CONTAINS FORWARD-LOOKING STATEMENTS YTD 2024 Financial Results: Energy Infrastructure $ in Millions Adjusted EBITDA1 Ò Higher Adjusted EBITDA1 driven +$25 primarily by: • Higher revenues due to the Warrior Run PPA monetization; and $645 $670 • Improved margins in Chile Ò Partially offset by: • Lower
Slide 39: YTD 2024 Financial Results: New Energy Technologies
CONTAINS FORWARD-LOOKING STATEMENTS YTD 2024 Financial Results: New Energy Technologies $ in Millions Adjusted EBITDA1 Ò Higher Adjusted EBITDA1 driven primarily by improved results at Fluence ($31) ($39) +$8 YTD 2023 YTD 2024 1. A non-GAAP financial measure. See “definitions”. 39
Slide 40: Q2 Adjusted PTC: Reconciliation to Public Financials of Listed Subsidiaries
CONTAINS FORWARD-LOOKING STATEMENTS Q2 Adjusted PTC1: Reconciliation to Public Financials of Listed Subsidiaries & Public Filers AES SBU/Reporting Country Utilities/US AES Company IPL DPL $ in Millions Q2 2024 Q2 2023 Q2 2024 Q2 2023 US GAAP Reconciliation AES Business Unit Adjusted Earnings1,2 $37
Slide 41: Q2 Adjusted EBITDA: Reconciliation to Public Financials of Listed Subsidiaries
CONTAINS FORWARD-LOOKING STATEMENTS Q2 Adjusted EBITDA1: Reconciliation to Public Financials of Listed Subsidiaries & Public Filers AES SBU/Reporting Country Renewables & Energy Infrastructure/Chile Renewables/Brazil AES Company AES Andes 2 AES Brasil2 $ in Millions Q2 2024 Q2 2023 Q2 2024 Q2 2023 U
Slide 42: Q2 2024 Modeling Disclosures
CONTAINS FORWARD-LOOKING STATEMENTS Q2 2024 Modeling Disclosures $ in Millions Interest Expense Interest Income Depreciation & Amortization Adjusted PTC 1 Consolidated Attributable Ownership- Consolidated Attributable Ownership- Consolidated Attributable Ownership- to NCI Adjusted to NCI Adjusted to
Slide 43: Q2 2024 Modeling Disclosures
CONTAINS FORWARD-LOOKING STATEMENTS Q2 2024 Modeling Disclosures $ in Millions Total Debt as of June 30, 2024 2027 Forecasted Total Debt Ownership- Ownership- Consolidated Attributable to NCI Consolidated Attributable to NCI Adjusted Adjusted Renewables* $8,253 ($1,392) $6,861 $16,200-$17,800 ($6,00
Slide 44: Q2 2024 Modeling Disclosures
CONTAINS FORWARD-LOOKING STATEMENTS Q2 2024 Modeling Disclosures $ in Millions Cash & Cash Equivalents, Restricted Cash, Short-Term Investments, Debt Service Reserves & Other Deposits Consolidated Attributable to NCI Ownership-Adjusted Renewables $1,026 ($206) $820 Utilities1 $117 ($15) $102 DPL $48
Slide 45: AES Modeling Disclosures
CONTAINS FORWARD-LOOKING STATEMENTS AES Modeling Disclosures $ in Millions 2024 Subsidiary Distributions (a) $1,500-$1,600 Cash Interest (b) ($195) Corporate / Parent-Funded SBU Overhead ($220) Business Development/Taxes ($35) Cash for Development, General & Administrative and Tax (c) ($255) Parent
Slide 46: 2024 SBU Modeling Ranges
CONTAINS FORWARD-LOOKING STATEMENTS 2024 SBU Modeling Ranges $ in Millions 2024 Adjusted EBITDA1 2023 Adjusted Modeling Ranges as of Drivers of Growth Versus 2023 EBITDA1 2/27/24 + New projects Renewables $645 $670-$750 − Colombia margins Utilities $678 $690-$770 + Rate base growth − Prior year LNG
Slide 47: Limited Exposure to Fluctuations in Foreign Currency
CONTAINS FORWARD-LOOKING STATEMENTS Limited Exposure to Fluctuations in Foreign Currency 2024-2026 Cumulative Exposure Annualized Impact1 of 10% USD Appreciation on Composition by Currency Adjusted PTC2,3 After Hedging Non-USD Currencies $ in Millions Argentine Peso (ARS) ($12) Euro (EUR) ($7) EUR,
Slide 48: 2024 Guidance Estimated Sensitivities
CONTAINS FORWARD-LOOKING STATEMENTS 2024 Guidance Estimated Sensitivities 10% appreciation of USD against following YTG 2024 currencies is forecasted to have the following Adjusted EPS impacts: Average Rate Sensitivity 1 Argentine Peso (ARS) 969.38 ~($0.02) Brazilian Real (BRL) 5.51 Less than ($0.00
Slide 49: PPAs Signed in YTD 2024
CONTAINS FORWARD-LOOKING STATEMENTS PPAs Signed in YTD 2024 AES Equity PPA Length Project Location Technology Gross MW Expected COD1 Interest (Years) Solar 500 Bellefield 2 US-CA 75% 2H 2026 15 Energy Storage 500 West Camp Expansion US-AZ Wind 100 75% 2H 2025 20 Madison US-VA Solar 63 75% 2H 2024 15
Slide 50: Reconciliation of Q2 Adjusted PTC and Adjusted EPS
CONTAINS FORWARD-LOOKING STATEMENTS Reconciliation of Q2 Adjusted PTC and Adjusted EPS1 Q2 2024 Q2 2023 Per Share (Diluted) Net Per Share (Diluted) Net Net of NCI2 Net of NCI2 $ in Millions, Except Per Share Amounts of NCI2 of NCI2 Income from Continuing Operations, Net of Tax, Attributable to AES a
Slide 51: Reconciliation of YTD Adjusted PTC and Adjusted EPS
CONTAINS FORWARD-LOOKING STATEMENTS Reconciliation of YTD Adjusted PTC and Adjusted EPS1 YTD 2024 YTD 2023 Per Share (Diluted) Net Per Share (Diluted) Net Net of NCI2 Net of NCI2 $ in Millions, Except Per Share Amounts of NCI2 of NCI2 Income from Continuing Operations, Net of Tax, Attributable to AE
Slide 52: Reconciliation of Q2 Adjusted EBITDA
CONTAINS FORWARD-LOOKING STATEMENTS Reconciliation of Q2 Adjusted EBITDA1 $ in Millions Q2 2024 Q2 2023 Net Income (Loss) ($39) ($19) Income Tax Expense ($35) ($2) Interest Expense $389 $310 Interest Income ($88) ($131) Depreciation and Amortization $308 $277 EBITDA $535 $435 Less: Adjustment for No
Slide 53: Reconciliation of YTD Adjusted EBITDA
CONTAINS FORWARD-LOOKING STATEMENTS Reconciliation of YTD Adjusted EBITDA1 $ in Millions YTD 2024 YTD 2023 Net Income (Loss) $239 $170 Income Tax Expense (Benefit) ($51) $70 Interest Expense $746 $640 Interest Income ($193) ($254) Depreciation and Amortization $620 $550 EBITDA $1,361 $1,176 Less: Ad
Slide 54: Reconciliation of 2020 Adjusted PTC and Adjusted EPS
CONTAINS FORWARD-LOOKING STATEMENTS Reconciliation of 2020 Adjusted PTC1 and Adjusted EPS1 FY 2020 $ in Millions, Except Per Share Amounts Net of NCI2 Per Share (Diluted) Net of NCI2 Income (Loss) from Continuing Operations, Net of Tax, Attributable to AES and Diluted EPS $43 $0.06 Add: Income Tax E
Slide 55: Reconciliation of Parent Free Cash Flow
CONTAINS FORWARD-LOOKING STATEMENTS Reconciliation of Parent Free Cash Flow1 $ in Millions 2023 2022 2021 2020 Net Cash Provided by Operating Activities at the Parent Company2 $608 $434 $570 $434 Subsidiary Distributions to QHCs Excluded from Schedule 13 $247 $257 $47 $198 Subsidiary Distributions C
Slide 56: Assumptions
CONTAINS FORWARD-LOOKING STATEMENTS 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 continu
Slide 57: Definitions
CONTAINS FORWARD-LOOKING STATEMENTS Definitions Adjusted EBITDA, a non-GAAP measure, is defined by the Company as earnings before interest income and expense, taxes, depreciation and amortization, adjusted for the impact of NCI, interest, taxes, depreciation and amortization of our equity affiliates