Slide 1: AES Corporation First Quarter 2006 Financial Review
AES Corporation First Quarter 2006 Financial Review May 8, 2006 The Global Power Company
Slide 2: Safe Harbor Disclosure
AS Safe Harbor Disclosure ‘The Global Power Company 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 earings, growth and financial
Slide 3: First Quarter 2006 Financial Results
(S Millions except earnings per share and percent) First Quarter 2008 Revenues 93.013 Gross Margin $954 8 % of Sales 317% Income Before Income ‘Taxes and Minority Interest (ieTeM) 9633 Dited EPS from Continuing Operations 9052 Adusted EPS 90.42 Return on Invested Capital (ROIC)® 12.2% © Non-GAAP mea
Slide 4: First Quarter 2006 Earnings Bridge
AS First Quarter 2006 Earnings The Getel Power Company Bridge 1005 Higher Gross. Higher Higher Higher Shares 1006 Aduusted Diluted EPS = Margin IB TEM! Income Gutstanding Diluted EPS EPS. (Primarily (net of Taxes & (Ditutve Factors Currency, Higher Lower Convertible Price and Gross Minority Debt) Al
Slide 5: Cash Flow and Free Cash Flow
(S Millions) ‘Subsidiary-Only Subsidiary Net Cash from Operating Activities? $647 Consolidated Net Cash from Operating Activities Free Cash Flow‘) Parent-On! ‘Subsidiary Distributions (”) Return of Capital from Subsidiaries Recourse Debt Repayment $132 $0 $150° © Non-GAAP measure, See Appendix. Excl
Slide 6: Subsidiary Distributions
AS First Quarter The Gel Power Conny Subsidiary Distributions ($ Millions) First Quarter 2006 Subsidiary Distributions” america | amence | ESP A | yuacie cast | Total utter | 9 s. s | se Generation $21 $- $16 $14 $51 oe $61 a $ $ $62 Total® $82 $20 $16 $14 $132 39% of First Quarter 2006 distribution
Slide 7: Segment Results: Regulated Utilities
{SWMillions except as noted) + Revenues increased primarily from favorable Latin America foreign exchange rates and higher fuel cost pass-through at IPL, largely offset by First Quarter % 2006 2005 Change| Segment Highlights Revenues $1,493 $1,399 7% Gross Margin $370 $367 1% as % of Sales 24.8% 26.
Slide 8: Segment Results: Contract Generation
{SWMillions except as noted) First Quarter Revenues Gross Margin as % of Sales 37.7% Revenue Comparison (QOQ) Volume/Price/Mix. Currency (Net) Segment Highlights + The increases are driven by higher demand and pricing at businesses in Latin America and higher demand in Pakistan. + Gross margin incre
Slide 9: Segment Results: Competitive Supply
{SWMillions except as noted) First Quarter Revenues Gross Margin as % of Sales 40.7% Revenue Comparison (QOQ) Volume/Price/Mix. Currency (Net) Segment Highlights + Revenues increased as a result of better pricing in Latin America and North America as well as New York excess emission allowance sales.
Slide 10: Appendix
Appendix 10 1006 Financial Review www.aes.com
Slide 11: 2006 Guidance
" Guidance Element Revenue Growth (% change) Gross Margin Business Segment Income Before Tax & Minority Interest (Excludes Corporate Costs of $625 Million) Allocated by Segment as % of Total + Regulated Utilties + Contract Generation + Competitive Supply Diluted Earnings Per Share From Continuing Op
Slide 12: 2006 Guidance and 2008 Financial Targets
12 Contains Forward Looking Statements Guidance Element 2006 Guidance Net Cash From Operating Activities $2.2 to $2.3 billion Maintenance Capital Expenditures $800 to $900 million Free Cash Flow'') $1.3 to $1.5 billion Subsidiary Distributions) $1.0 billion Parent Investments and Capital Expenditure
Slide 13: Adjusted Earnings Per Share Reconciliation
(SPer Share) First Quarter —_ First Quarter 2006 2005 Diluted Earnings Per Share From Continuing $0.52 $0.19 Operations FAS 133 Mark-to-Market (Gains)/Losses - - Currency Transaction (Gains)/Losses = (0.01) Net Asset (Gains)/Losses and Impairments (0.13) - Debt Retirement (Gains)/Losses 0.03 = Adjus
Slide 14: Sources and Uses of Liquidity
{SMillions) 44 First Quarter Sources 2006 Total Subsidiary Distributions $132 Proceeds from Asset Sales, Net 108 Refinancing Proceeds, Net ss Increased Revolver Commitments 500 Issuance of Common Stock, Net 8 Total Returns of Capital Distributions and Project Financing Proceeds a Beginning Liquidity
Slide 15: Parent Debt Reconciliation
{SMillions) Debt Reconciliation Parent Debt (including Letters of Credit) at 12131105 $6,176 ‘Scheduled Debt Maturities: = Discretionary Debt Repayments: Prepayment of Debt (115) other a)” Parent Debt (including Letters of Credit) at 3/31/06 $5,023 Less: Letters of Credit Outstanding at 3/31/06 (202
Slide 16: Cash Flow Statement Detail
($ Millions) Net Cash from Operating Activites Maintenance Capital Expenditures Growth Capital Expenditures Investment in Subssianies [Net Proceeds ftom Asset Sales ‘Net Proceeds fom the Sale of Emission Allowances ‘Sale of Short Term investments, Net of Purchases: Inereaee in Restncted Cath Decreas
Slide 17: Returns of Capital and Distributions
ributi (S Millions) ‘Total subsidiary distibutions. & tetuins of capital to parent ‘Sbsiary aston to pret Net aston totion) HC Tela suis dian Retuns of capt ebb opaert Net eturs tap tiers to! (romance ‘Total retums fcaptal ditions Liquidity ‘cosh at per val nde reoher Ending tity ‘Sve fallowing page
Slide 18: Assumptions
AS Assumptions ‘The Global Power Company 18 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
Slide 19: Definitions of Non-GAAP Measures
AS Definitions of Non-GAAP ‘The Global Power Company Measures + 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 transact
Slide 20: Net Cash from Operating Activities and Free Cash Flow Reconciliation
Net Cash from Operating Activities — First Quarter 2006 ($ Millions) First Quarter 2006 AES Subsidiaries Corp Eliminations _ Consolidated ‘$660 $16 ($132) $544 Reconciliation of Free Cash Flow ($ Millions) First Quarter First Quarter 2006 2005 Net Cash from Operating Activities $544 $518 Maintenance
Slide 21: Searchable text section of graphics shown above
Searchable text section of graphics shown above AES Corporation First Quarter 2006 Financial Review May 8, 2006 [LOGO] The Global Power Company [LOGO] The Global Power Company Safe Harbor Disclosure Certain statements in the following presentation regarding AES’s business operations may constitute “