The Aes Corporation · NYSE:AES
The Aes — AES — Investor Day (March 2006)
123 slides from The Aes's investor day presentation, Mar 23, 2006
Slide 1: 2006 AES Investor Conference Series
2006 AES Investor Conference Series Scott Cunningham Vice President, investor Relations AES CORPORATION March 22, 2006
Slide 2: Safe Harbor Disclosure
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,
Slide 3: Today's Agenda
Today’s Agenda w Opening Comments Scott Cunningham EMEA Business Review = Overview ‘Shahzad Qasim = EMEA Generation John McLaren = AES Sonel Jean David Bile * AES Ukraine Garry Levesiey| = Q&A Session All Break Southern Cone Latin America Business Review = Overview Andres Gluski + AES Gener Felipe C
Slide 4: Appendix - Assumptions
Appendix - Assumptions Forecasted financial information is based on certain material assumptions. Such assumptions include, but are not limited to: 1) no unforeseen external events such as wars, depressions, or economic or political disruptions occur; 2 ) businesses continue to operate in a manner c
Slide 5: Appendix - Definitions
Appendix - Definitions * Free Cash Flow - Net cash from operating activities less maintenance capital expenditures. Maintenance capital expenditures reflect property additions less growth capital expenditures. * Lost Time Accident (LTA) - An incident in which the injured person is kept away from wor
Slide 6: Appendix - Reconciliation of Subsidiary Distributions
Appendix — Reconciliation of Subsidiary Distributions (USS Millions) ‘Year Ended Quarter Ended Nine Months December31, —— ae |e Mar.31, Jun.30, Sep.30, Sep. 30, 20032004 2005’ 2005’ 2005 2005 Subsidiary distibutions to parent $1008 $991 $190 $170 $274 $624 Net distributions to/{from) QHCs 46 13 5 -
Slide 7: AES EMEA Business Review
AES EMEA Business Review Shahzad Qasim President, Europe and Africa AES CORPORATION March 22, 2006
Slide 8: AES Europe, Middle East and Africa (EMEA)
AES Europe, Middle East and Africa (EMEA) : ' 44; “(tthousands) Bulgaria 5 af ¢ x ANS dé Cameroon a x . 5 Czech Republic 5 of $ é Hungary 100 $ 15,900 4 31 Netherlands 164 $ 30,500 97 101 Nigeria 1288 $ 1,000 20 13 Oman 30 $ 13,400 "1 8 Pakistan 1624 $ 2400 8 57 Qatar og $ 26,000 2 “ Spain 403 $ 25,
Slide 9: EMEA at a Glance
5,700MW Total Installed Capacity EMEA at a Glance 1,870MW Under Construction/Planned 3 Utilities in 2 Countries Serve 1.7MM Customers
Slide 10: My Priorities
My Priorities = Reduction of lost time accidents and Satety, near misses Bist = Embedding safety as part of the culture Gpertorel = Customer service peratonal = Loss reduction & collection efficiency Excellence . ' = Top decile generation plant performance Business = Platform Sxpansion opportunities
Slide 11: AES EMEA Generation Business Review
AES EMEA Generation Business Review John McLaren Vice President March 22, 2006
Slide 12: AES Goals and EMEA Generation Role
Contains Forward Looking Statements AES EMEA AES Goals AES 2008 Target Generation Role Financial Goals + Revenue Growth - Above Average * Gross Margin Growth $3.5 Billion Above Average + Eamings Per Share Growth 13-19% per Year Below Average * ROIC Improvement* 11% Above Average * Cash Flow Growth -
Slide 13: Europe Generation Market Characteristics
Europe Generation Market Characteristics EU Generally EU dominated by large ‘regionally focused integrated players Generators typically sel into power pools or bilateral Contracts EU legislation targets liberalization, competition, renewables and environmental improvements EU Emissions Trading ‘Comm
Slide 14: Europe Generation Market Characteristics
Europe Generation Market Characteristics Netherlands 226W of installed capacity Fully liberalized sector New exporter of electricity (18.1%) Dominated by a few integrated players Generation primanly gas-fired Electricity demand slow in recent years Reserve margin above 17% 1.9% per year GDP arowth ‘
Slide 15: Dependable Reserve Margin in 2004
Dependable Reserve Margin in 2004 MM Peak Demand (GW) lim Installed Capacity (GW) % Dependable Reserve Marain Czech Republic A R md Spain 33% ‘Source: Cambridge Eneray Research Associates. aes.com
Slide 16: Reserve Margin—EU Weighted Average
Reserve Margin—EU Weighted Average Contains Forward Looking Statements 35% 800 30% 25% nao = Planning Reserve Margin 15% Percent 400 18% Gigawatt 10% "= Dependable Capacity "=m Total Peak 200 5% I i ii] ii ii li 0% 0 1995 2000 2005 2010 Source: Cambridge Eneray Research Associates, UCTE Note: non-co
Slide 17: Capacity Additions—EU
Capacity Additions—EU Contains Forward Looking Statements 100 History 1 Pipeline 90 ul a mNuclear mmtiyaro 1 Coal Natural Gas ' EO == wind ! == other — Needed Capacity ‘ ' 60 ‘ Gigawatt 50 1 1 40 1 30 Equilibrium Need H q 1980 1985 1990 1995 2000 2005 2010 ‘Source: Cambridge Energy Research Associat
Slide 18: Middle East and Africa Generation Market Characteristics
Middle East and Africa Generation Market Characteristics GW of installed capacity 3GW ofinstaled capacity Maximum Load is 36 ‘AES provides 18% of the Nation's electricity capacity Demand exceeds firm supply pane and 20% of its water Generation based on long- Ebute provides 8% of generation temERS Go
Slide 19: AES EMEA Generation Financial Overview
AES EMEA Generation Financial Overview (USS Million) 2003 Revenue S771 Gross Margin $306 Income Before Tax & Minority Interest $162 Distributions to AES Corporation $202 2004 $957 $372 $226 $129 Nine Months Ending September 30, 2005, $746 $302 $194 $121 Note: Information is presented on an AES basis
Slide 20: AES Europe Generation
AES Europe Generation Biomass Coal Gas oil Borsod, Hungary Bohemia, Czech Republic Cartagena (UC), Spain. Kilroot, NIUK 96M = 50MW =1,200MW = 520MW. Coal "100% AES Owned 100% AES Owned «71% AES Owned —« 97% AES Owned ace at Tiszapalkonya, Hungary Kilt, NI UK Elsta, Netherlands Tisza Il, Hungary mol
Slide 21: AES Africa and Middle East Generation
AES Africa and Middle East Generation Gas Barka, Oman 456M = 35% AES Owned Ras Latfan, Qatar = T56MW ++ 55% AES Owned Ebute, Nigeria =305MW = 95% AES Owned www.aes.com oi Lal Pir, Palastan =362MW = 55% AES Owned Pak Gen, Pakistan = 365M += 55% AES Owned BH Natural Gas Bo
Slide 22: AES EMEA Generation Portfolio — Diverse Geography and Impacts of New Capacity
AES EMEA Generation Portfolio — Diverse Geography and Impacts of New Capacity Balanced Revenues (% of Total) Africa 6% Data as of Soptember 30,2005 www.aes.com Impact on Revenue Growth from Capacity Additions (MW) 1,200, 1,000 800 600 400 200 0 2003, 2004 2005 Existing m Additions Positive future co
Slide 23: AES EMEA Generation Portfolio Largely Contracted with Fuel Pass Through
AES EMEA Generation Portfolio Largely Contracted with Fuel Pass Through Portfolio Primarily Fuel Risk as Contract Generation % of Capacity 100% 12% 80% = —a 40% 20% 88% 0% 2003 2004 2005 = Contract Generation m= Competitive Supply » Fuel Pass Through m Fuel Margin Risk Data as of September 30, 2005
Slide 24: EMEA Generation KPIs
EMEA Generation KPIs Key Performance Indicator (KPI) * Lost time accidents (LTAs) Safety Excellence * Days since last LTA * Near-miss reporting SO, emissions NO, emissions Opacity CO, emissions Environmental Excellence * Equivalent availability factor Operational Excellence * Equivalent forced outag
Slide 25: Implementing KPIs in EMEA Generation
Implementing KPIs in EMEA Generation Safety Environment Operational Excellence * Implementation of a + Regular Environmental * Best practice Safety Management Audits implementation initiative System * Standardized auditing + Heat Rate Task Force * Regular Safety Audits protocols based on ISO * Globa
Slide 26: EMEA Generation Safety Performance
EMEA Generation Safety Performance Lost Time Accidents Sey CCl * All plants have more than a year without an AES LTA Getting Better | 6 * Three plants have more than seven 3 years without an AES LTA i = 1,461 near misses reported in 2005 2003 2004 2005 EMEA Generation’s top priority is safety in the
Slide 27: EMEA Generation Environmental Performance
EMEA Generation Environmental Performance SO, Emissions Dust Emissions 70% Improvement 85% Improvement Getting Better | Getting Better | 196 120 oo gg 102 W 59 i rh 2002 2003 = 2004 2005 2002 «= 2003 2004 2008 Favorable trends through a strategy of pursuing alternate fuels and plant improvements. ww
Slide 28: EMEA Generation Operational Excellence
EMEA Generation Operational Excellence EAF EFOR 2.3% Improvement 2.8% Improvement Getting Better | 92.3% 5.0%. a sa I = | ir. 2003 ©2004 2005 2003 ©2004 «2005 The drive to operational excellence is key to the success of the plants. aww at com
Slide 29: Ebute Performance Improvement
Ebute Performance Improvement EFOR 32.0% 2003 22.4% Improvement jaa Getting Better iY 9.6% 2004 2005 Performance Initiatives Hot Gas Path management Staff training and performance LTSA management Plant Challenges Nine barge mounted Frame 6 CTs Unknown maintenance history Poor availability of technic
Slide 30: Platform Expansion Opportunities
atform Expansion Opportunities Lal Pir Pakistan Tiszapalkonya Hungary Kilroot N. Ireland Cloghan Point N. Ireland Ebute Nigeria www.aes.com Contains Forward Looking Statements Construction of a 400MW CCGT New PPA being negotiated with WAPDA 400MW CCGT A tolling agreement to be negotiated 400MW CCGT
Slide 31: Platform Extension - Kilroot Biomass Trials
Platform Extension - Kilroot Biomass Trials Contains Forward Looking Statements * Biomass is now being co-fired at the Kilroot power station in Northern Ireland Fast Growing Coppice For Biomass Production * In burning biomass the business is able to i generate a revenue stream through its i) generat
Slide 32: Greenfield Example: Bulgaria
Greenfield Example: Bulgaria Contains Forward Looking Statements 670MW lignite-fired power plant Proposed AES Maritza Plant, Bulgaria = $1.4 billion project cost (artist rendition) = 15 year contract with NEK (national utility) * 15 year lignite supply agreement minimizes energy supply risks * Lette
Slide 33: Greenfield Example: Cartagena
Greenfield Example: Cartagena 1,200MW gas-fired CCGT power plant * $860 million project cost * 21 year contract with Gaz de France International (GDFi) for fuel and the purchase of power * Fuel and electricity off-take contracts insulate AES from market risks * GDFi to provide fuel through LNG termi
Slide 34: AES Sonel Business Review
AES Sonel Business Review AES CORPORATION Jean David Bile Vice President and AES Sone! General Manager March 22, 2006
Slide 35: Sonel Strategic Overview
Sonel Strategic Overview Contains Forward Looking Statements AES Goals AES 2008 Target AES Sonel Role Financial Goals * Revenue Growth - Above Average " Gross Margin Growth $3.5 Billion Above Average * Earmings Per Share Growth 13-19% per Year Above Average * ROIC Improvement* 11% Below Average * Ca
Slide 36: Cameroon Highlights
Cameroon Highlights -coneonawounes Currency CFA Franc BEAC (XAF) Exchange Rate (03/17/2008) 1 (XAF) = 0.001856 (USD) Per Capita GDP (2004 est) Us $1,900 Inflation Rete (2004 est } 1% Economic Drivers Petroleum, Bauxite, Iron Ore, Timber, Hydropower Capital ‘Yaounde Largest City Douala Population (Ju
Slide 37: Cameroon Electricity Market Characteristics
Cameroon Electricity Market Characteristics Generation Pail Tat ‘AES Sonelis the sole ‘generation company Private sector/government partnership 100% self generated ‘933MW installed capacity = 77% hydro = 28% thermal www.aes.com Transportation Distribution Commercial Base ‘AES Sonel has the sole tran
Slide 38: Cameroon Electricity Demand Growth
Cameroon Electricity Demand Growth aww at GDP Growth (QoQ) sams Energy demand —spP Energy Demand (GWh) Industrial demand variabilty has influenced the relationship between electricity demand and GDP growth. ct m.
Slide 39: Cameroon Electricity Demand Growth
Cameroon Electricity Demand Growth 2 2 i c < it 2 a fat co) 6,000 2,600 2,400 Sion 2,200 2,000 4,800 4,500 4,600 008 4,400 4,200 3,500 4,000 800 3,000 600: 2,500 400 200 2,000 ° 1991 1993 1995 1997 1999 2001 2003 2005 mmm Public Sector Demand. = ——GDP. Sector Demand (GWh) 3B S a Historically, there
Slide 40: Cameroon Regulatory Framework
Cameroon Regulatory Framework ARSEL Framework Concession (connection and service goals, tariff structure) Generating Concession ‘Transmission Concession Low Voltage Distribution and Sales Concession High/Special Voltage Sales License Qi AES Sonel |) Medium Voltage Customers Large Customers
Slide 41: AES Sonel History
AES Sonel History 1938 — First electricity distribution at Yaoundé, Douala and Nkongsamba 1948 — Eneleam established to develop the first hydro power plant on the Sanaga River at Edea 1954-8 — Edea! (35MW) and Edea Il (122MW) completed 1963 - EDC, an integrated utility, established in the French-spe
Slide 42: AES Sonel is an Integrated Utility
AES Sonel is an Integrated Utility NIG SIG www.aes.com mMbakaou Barienda om Bamengjin Songioulou Ede \ Yaoundé ual’ AES Sonel Generation System =721MW hydroelectric =212MW thermal (diesel/fuel oil) ‘Storage dam BH Hydroelectric plant 1 Limbé fuel oil plant Concession area Note: Smaller thermal units
Slide 43: AES Sonel Customer Base
AES Sonel Customer Base Billed Consumption (GWh) 2005 Electricity Sales Trend (GWh) Industrial Commercial 45% 18% ee 30052258 2 2.811 2,873 Residential 28% Revenues 2005 (’) Industrial 8% ‘Commercial | , P 27% 70s| | 759, | 866 | 920 & ae 2002 2003 «©2004 «2005 Residential Potters: a: 7 ‘i 5 a 14% =
Slide 44: AES Sonel KPIs
AES Sonel KPIs Contains Forward Looking Statements Key Performance Indicator (KP!) * Lost time accidents (LTA) = Near misses * Incident rate * Days without LTA Safety Excellence * Distribution losses * Transmission efficiency * Cash collection efficiency * Unserved energy rate Operational Excellence
Slide 45: Transmission Efficiency Trends
nsmission Efficiency Trends Distribution Losses Getting Better | Ste 308% 97.0% 244% 2002 © 2003 «2004 = 2005 [Transmission Efficiency| 844% 94.8% o39% 941% 2002 2003 2004 2005 Targeting technical and commercial losses Better IT systems track consumption pattems Rehabilitating the network infrastruc
Slide 46: Improved Operating Performance
Improved Operating Performance Private sector collection gains Higher production capacity and network Favorable working capital trends efficiency support distribution performance www aes.com Cash Collection Efficiency 93.7% 899% 63% 872% 2002 2003 2004 2005 Unserved Energy Getting Better 38% 3.9% 2.
Slide 47: AES Sonel Financial Overview
AES Sonel Fin ncial Overview (USS Millions) Revenue Gross Margin Income Before Tax & Minority Interest Distributions to AES Corporation Nine Months Ending September 30, 2003 2004 2005 $203 $273 $221 $13 $33 $63 $8 $30 $2 $2 31 Note: Information is presented on an AES basis and is unaudited. Certain
Slide 48: Social Commitment and Economic Development
Social Commitment and Economic Development AES Sonel leadership in AES has organized two 4 largest company in fight against HIV/AIDS is career fairs in Europe to Cameroon in terms of applauded by various recruit highly qualified revenues organizations Africans One of the biggest 12,000 people benefi
Slide 49: AES Sonel Scenario Planning
AES Sonel Scenario Planning Strategic Issues Revised and improved concession agreement Hydrology risk and fuel Development of infrastructure Political instability aes.com Contains Forward Looking Statements Finalization of amendments to the concession contract Reducing hydrology risk as thermal cost
Slide 50: AES Sonel Scenario Planning
AES Sonel Scenario Planning Contains Forward Looking Statements Strategic Opportunities = Asset management Value = Maintenance work management Enhancement 5 . Program = Reconstruction project management = Revenue management = Proposed Alucam expansion will require Demand Growth new plant and infrast
Slide 51: AES Ukraine Business Review
AES Ukraine Business Review Garry Levesley AES Vice President, Director AES Ukraine AES CORPORATION | March 22, 2006
Slide 52: AES Ukraine Strategic Overview
AES Ukraine Strategic Overview Contains Forward Looking Statements AES Goals AES 2008 Target AES Ukraine Role Financial Goals * Revenue Growth - Above Average " Gross Margin Growth $3.5 Billion Average * Earmings Per Share Growth 13-19% per Year Below Average * ROIC Improvement* 11% Average * Cash F
Slide 53: Ukraine at a Glance
Ukraine at a Glance Currency Urraine Hryvnia (UAH) Exchange Rate (03/01/2006) 1 (UAH) = 0.197 (USD) Per Capita GDP (at PPP 2004 est.) Us $6410 Per Capita GOP (nominal, 2004) US$1.375 Inflation Rate (2005) 103% . Ferroalloy production, machine building, Economic avers aghicuture, eneray, transportati
Slide 54: Ukraine Electricity Market Characteristics
Ukraine Electricity Market Characteristics Generation ‘Seven large companies 12% private sector (installed capacity) 22 large CHS 54,000MW installed capacity + 25% nuclear + 8596 thermal Generators with capacity >20MW sell to Wholesale Electricity Supplier under Single buyer market madel ether throu
Slide 55: Ukrainian Generation Market Profile
Ukrainian Generation Market Profile 2005 Output by Generation Type Hydroelectric State Owned 12,333 GWh Thermal State Owned (7%) 58,895 GWh (32%) Wind State Owned Nuclear State ‘9.GWh Owned (0%) 88,756 GWh (48%) SS \ Thermal Private CHP's Mixed 46,611 GWh Ownership (0%) 8,577 GWh Total 2005 output 1
Slide 56: Ukraine Electricity Demand Growth
Ukraine Electricity Demand Growth 90000 us e000 ao 7op00 195 e000 s = 50000 130 ; z @ 40000 + $ a0p00 120 20900 10,000 me 0 no 1997 1999 2001 2003 2005 mm GDP —Electricity demand + Correlation between electricity demand and GDP growth has increased in recent years + Electricity demand is expected to
Slide 57: Ukraine Electricity Market History
Ukraine Electricity Market History Electricity sector functions as a single vertically integrated system operated by the Ministry of Eneray Functional vertical unbundling of generation transmission and distribution Creation of a regulatory body to form electricity market and ensure its effective fun
Slide 58: Ukraine Electricity Market Operation Model
Ukraine Electricity Market Operation Model Thermal Rank Order, Price Bids Heuty ransmission & Dispatch, CS System Operator i) Byes Distributors & Regulated Tariff Regulated Ss 7 | Supply Companies 90% T Nuclear Wholesale Regulated Tariff Energy ° VA Market M fen Non-regulated Price Bids or Regulated
Slide 59: Ukraine Regulatory Framework
Ukraine Regulatory Framework Regulatory Body Authority Rate Setting ‘Set tantf for NERC — National Energy Regulator Licensing & pricing * generators (not thermal) ‘Commission + transmission Five Commissioners appointed by the President of Ukraine for six years Other Players ‘Antimonop oly ‘Committee
Slide 60: AES Ukraine: Distribution
AES Ukraine: Distribution RIVNEENERGO KYIVOBLENERGO, KYIVOBLENERGO + Service area 28,000 km? SLORUS + 818,000 customers + 3,000 employees + 2005 revenues $100 MM (8 months + 90% AES-owned RIVNEENERGO- + Service area 20,000 km? + 404,000 customers + 1,500 employees + 2006 revenues $52MM (9 months) Bs
Slide 61: AES Ukraine Customer Base
AES Ukraine Customer Base 2005 Consumption (6 GWh) Electricity Sales Trend (GWh) oe ca a 6,079 5,480 5,821 Commercial 15% 42% 5,040 ee - Residential YTD 2005 Revenues ($152 MM)* Other nt Government Ome 8% Industrial Commerciat oe 52% Residential 15% * Data as of September 20,2005 wwwiaes.com: cE - 2
Slide 62: AES Ukraine Electricity Tariffs
AES Ukraine Electricity Tariffs Electricity Tariffs (Kyivoblenergo) 8 Distribution E 6 value Added Subsidized Ba 2 5 oO 2 Paid Wholesale Tariff HV Customer LV Customer _Residential Tariff Tariff Tariff www.aes.com
Slide 63: AES Ukraine Safety Performance
AES Ukraine Safety Performance LTA 2005 Safety Activity Conducted 2,500 safety 15 walks/inspections rr Introduced unsafe conditions @ reporting and analysis ui J Identified 750 unsafe conditions Live line working training of personnel and equipment procurement and certification Is in progress 2002 2
Slide 64: AES Ukraine Operational Performance
AES Ukraine Operational Performance Collections Losses 102.6% sa Getting Better J 100.5% 101.3% 1014% 176% | | [ | Ii 2002 2008 © 2004 ©2005 2002 2003» 2004 = 2008 AES Ukraine demonstrated considerable operational improvements. www.aes.com
Slide 65: AES Ukraine Financial Overview
AES Ukraine Fin ncial Overview (USS Million) Revenue Gross Margin Income Before Tax & Minority Interest Distributions to AES Corporation 2003 $164 $21 $16 $1 2004 $190 $26 $16 $18 Nine Months Ending September 30, 2005, $152 $19 $13 Note: Information is presented on an AES basis and is unaudited. Cer
Slide 66: AES Ukraine Market Issues and Opportunities
AES Ukraine Market Issues and Opportunities Contains Forward Looking Statements Current Issues Opportunities Risks Regulator political Improvement of regulatory and Tariff regulation volatility independence, discretion in business environment as decision making country “normalizes” to Retail supply
Slide 67: AES Ukraine Scenario Planning
AES Ukraine Scenario Planning Contains Forward Looking Statements . = Increased regulation of the economy Ukraine Moves = Reduction in foreign investments East = GDP growth rate decreases = Currency depreciates = Liberalization of the economy Ukraine Moves = Increase foreign investments West = Elect
Slide 68: Ukraine Platform Expansion Opportunities
Ukraine Platform Expansion Opportunities Contains Forward Looking Statements Areas Description of Selected Projects = Five companies owned by VSE (Russians) * Six companies owned by three conflicting shareholders Distribution Four with different industrial groups +12 state owned to be privatized Dni
Slide 69: AES Southern Cone Latin America Business Review
AES Southern Cone Latin America Business Review Andres Gluski President, Latin America AES CORPORATION March 22, 2006
Slide 70: Southern Cone of Latin America
Southern Cone of Latin America Per: i Population (MM) GDP. i Southem Country (2005 est) est) . Argentina 306 $ 13,600 Cone. Chile 160 $ 11,300 Colombia 43.0 $ 7,100 ” ‘Source: The World Factbook; AES estimates. www.aes.com
Slide 71: Southern Cone at a Glance
Southern Cone at a Glance 6,265MW Total Installed Capacity 4120MW Under Construction 3 Utilities Serve 750K Customers www.aes.com
Slide 72: My Priorities
My Priorities Safety = Leadership and training First = Set the example for others = Customer service best-performing goals Operational = Loss reduction at utilities Excellence = Top decile generation plant performance = Regulatory management Portfolio « Target capital structures Optimization = Activ
Slide 73: AES Gener Business Review
AES Gener Business Review AES CORPORATION Felipe Ceron Chief Executive Officer, AES Gener S.A March 22, 2006
Slide 74: AES Gener Strategic Overview
AES Gener Strategic Overview Contains Forward Looking Statements AES Goals AES 2008 Target AES Gener Role Financial Goals * Revenue Growth - Above Average " Gross Margin Growth $3.5 Billion Below Average * Earmings Per Share Growth 13-19% per Year Above Average * ROIC Improvement* 11% Average * Cash
Slide 75: Chile Highlights
Chile Highlights Chile ata Glance Currency - Chilean Peso (Ch8) Exchange Rate (3/14/06) US$1=Ch$527.1 Per Capita GOP (2004) uss7.077 Inflation Rate (2005) 3.6% Economic Drivers Copper, Agricuture, Forestry, Fishing Capita Santiago Largest City Santiago Population (2005 &) 163 million Sovereign Credi
Slide 76: Chile Electricity Market Characteristics
Chile Electricity Market Characteristics Generation mea *? 31 companies 0% private sector 20% AES share (capacty) 27 generators Four self and cogeneratna 12.253MW installed capacity + 419% hydroelectric + 5996 thermal Generators fee to sellto * Distribution companies at regulated prices += Large cus
Slide 77: Chile Generation Market Profile
Chile Generation Market Profile Capacity Market Share Other 5% AES Gener 20% Endesa 42% ‘Colbun 19% Tractebel-Codelco 14% Total Installed Capacity = 12,254MW
Slide 78: Colombia Generation Profile
Colombia Generation Profile www.aes.com. Capacity Market Share Union Fenosa 9 Endesa otner 10% 6% 24% CORELCA 10% AES-Chivor 8% EEPPM 25% ISAGEN17% Total Installed Capacity = 13,348MW EEPPM: Empresas Publicas de Medellin ISAGEN: ISAGEN SA. E.S.P. CORELCA: Corporacién Eléctrica de la Costa Atlantica
Slide 79: Chile Grid Overview
Chile Grid Overview Antofagasta Central Interconnected Northern Interconnected System (SIC) 2005 ‘System (SING) 2005 Installed Capacity 8, 629M Santiago Installed Capacity 3,625MW Maximum Demand —5,764MW- Gross Production 36,344 GWh Maximum Demand — 1,533MW_ Gross Production 12,657 GWh Load Factor 7
Slide 80: Chile Electricity Demand Growth
Chile Electricity Demand Growth 100,000 60,000 80,000 20,000, s 40,000 = 60,000 g Ps 30,000 3 8 $ 40,000 20,000 20,000 40-000, 0 0 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 mms GDP —— Energy demand = Correlation between energy demand and GDP growth has increased in recent years = Energy
Slide 81: Colombia Electricity Demand Growth
Slide 82: Chilean Power Market
Slide 83: Chilean Power Market Organization
Slide 84: AES Gener History
Slide 85: AES Gener Business Structure
Slide 86: AES Gener in Chile: Balanced Portfolio of Coal, Natural Gas & Hydro
Slide 87: AES in Colombia: Generation
Slide 88: AES Gener SIC Asset Diversity
Slide 89: AES Gener SING Asset Diversity
Slide 90: AES Gener Contract Revenue Model
Slide 91: AES Gener Fuel Sources
Slide 92: AES Gener Generation KPIs
Slide 93: AES Gener Performance Scorecard
Slide 94: KPI - Generation EFOR Improvement
Slide 95: AES Gener Capital Structure Objectives
Slide 96: AES Gener Debt Summary
Slide 97: Reprofiled Balance Sheet
Slide 98: Gener Credit Rating Improvement
Slide 99: AES Gener Portfolio Diversified by Geography
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Link to searchable text of slide shown above Searchable text section of graphics shown above AES CORPORATION 2006 AES Investor Conference Series Scott Cunningham Vice President, Investor Relations [GRAPHIC] March 22, 2006 Sa fe Harbor Disclosure Certain statements in the following presentation regar