Slide 1: The AES Corporation Third Quarter 2024 Financial Review
The AES Corporation Third Quarter 2024 Financial Review November 1, 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 & Outlook à Q3 2024 Adjusted EBITDA1 with Tax Attributes2 of $1,168 million à Q3 2024 Adjusted EBITDA1 of $692 million à Q3 2024 Adjusted EPS1 of $0.71 à Reaffirming 2024 guidance and growth rates through 2027 • Expect to be
Slide 4: On Track to Sign 14-17 GW of New PPAs from 2023 Through 2025
CONTAINS FORWARD-LOOKING STATEMENTS On Track to Sign 14-17 GW of New PPAs from 2023 Through 2025 Capacity in GW 14-17 à Added 1.3 GW of new PPAs to our backlog since our Q2 call in August à More than 70% of 3.5 GW year-to- 3.5 date is with corporate customers 5.6 9.1 2023 YTD 2024 2023-2025 Target S
Slide 5: Significant Progress Toward Adding 3.6 GW to Our Operating Portfolio
CONTAINS FORWARD-LOOKING STATEMENTS Significant Progress Toward Adding 3.6 GW to Our Operating Portfolio Capacity in GW 22% to be Completed à Nearly all solar panels in-country or contracted to be domestically- manufactured through 2026 • 100% onsite for 2024 3.6 GW • 84% onsite or in-country for 20
Slide 6: AES is Well-Positioned Regardless of Election Outcomes or Potential Policy Changes
CONTAINS FORWARD-LOOKING STATEMENTS AES is Well-Positioned Regardless of Election Outcomes or Potential Policy Changes Strong Market Position with Data Center Companies Gives Confidence in Future Growth Due to Massive Need for New Power Resilient Supply Chain Includes High Portion of Domestically-Ma
Slide 7: AES Indiana & AES Ohio are Two of the Fastest Growing Utilities in the US
CONTAINS FORWARD-LOOKING STATEMENTS AES Indiana & AES Ohio are Two of the Fastest Growing Utilities in the US Investments à Higher investments to enhance ($ in Millions) reliability and customer experience $1,200 • Both utilities received significant rate case approvals over the past year $750 à Mai
Slide 8: AES Indiana & AES Ohio Well-Situated for Data Center Growth
CONTAINS FORWARD-LOOKING STATEMENTS AES Indiana & AES Ohio Well-Situated for Data Center Growth à Recently launched an RFP for 3 GW of à Signed agreements for new data center new generation to support accelerating load growth of 2.1 GW, including 900 demand growth MW since Q2 call in August • Expect
Slide 9: Signed or Closed More Than Three-Quarters of $3.5 Billion Asset Sale Proceeds Target
CONTAINS FORWARD-LOOKING STATEMENTS Signed or Closed More Than Three-Quarters1 of $3.5 Billion Asset Sale Proceeds Target for 2023 Through 2027 $ in Billions $0.8 $3.5 à Announced sale of a 30% indirect $2.7 equity interest in AES Ohio to CDPQ in September 2024 à Closed sale of AES Brasil on October
Slide 10: Q3 2024 Financial Review
CONTAINS FORWARD-LOOKING STATEMENTS Q3 2024 Financial Review à Q3 2024 results à 2024 guidance à 2024 Parent capital allocation 10
Slide 11: Q3 2024 Financial Results
CONTAINS FORWARD-LOOKING STATEMENTS Q3 2024 Financial Results $ in Millions Adjusted EBITDA1 with Tax Attributes2 Ò Higher Adjusted EBITDA1 with Tax Attributes2 driven primarily by +$160 contributions from new renewables projects $1,168 Ò Partially offset by: $1,008 • Record-breaking drought conditi
Slide 12: Q3 2024 Adjusted EPS Increased $0.11
CONTAINS FORWARD-LOOKING STATEMENTS Q3 2024 Adjusted EPS1 Increased $0.11 $ Per Share $0.16 $0.71 ($0.02) ($0.03) $0.60 Q3 2023: 28% + New projects Q3 2024: 31% − Record-breaking drought conditions in South America − Lower margins at Energy Infrastructure businesses Q3 2023 SBUs / Corporate Parent I
Slide 13: Q3 2024 Financial Results: Renewables
CONTAINS FORWARD-LOOKING STATEMENTS Q3 2024 Financial Results: Renewables $ in Millions Adjusted EBITDA1 with Tax Attributes2 Ò Higher Adjusted EBITDA1 with Tax Attributes2 driven primarily by +$389 contributions from new projects Ò Partially offset by record-breaking $674 drought conditions in Colo
Slide 14: Q3 2024 Financial Results: Utilities
CONTAINS FORWARD-LOOKING STATEMENTS Q3 2024 Financial Results: Utilities $ in Millions Adjusted PTC1 Ò Lower Adjusted PTC1 driven primarily by: -$28 • 2023 recovery of AES Ohio costs as a part of ESP42 settlement; and $101 • Higher interest expense from new borrowings $39 Ò Partially offset by: Prio
Slide 15: Q3 2024 Financial Results: Energy Infrastructure
CONTAINS FORWARD-LOOKING STATEMENTS Q3 2024 Financial Results: Energy Infrastructure $ in Millions Adjusted EBITDA1 Ò Lower Adjusted EBITDA1 driven -$221 primarily by: • Lower revenues due to prior year Warrior Run PPA monetization; $520 • Lower margins at Southland; • Outages in Mexico; and • Sell-
Slide 16: Q3 2024 Financial Results: New Energy Technologies
CONTAINS FORWARD-LOOKING STATEMENTS Q3 2024 Financial Results: New Energy Technologies $ in Millions Adjusted EBITDA1 Ò Higher Adjusted EBITDA1 driven primarily by improved results at Fluence ($7) ($22) +$15 Q3 2023 Q3 2024 1. A non-GAAP financial measure. See Appendix for definition and reconciliat
Slide 17: Expect to be in the Top Half of Adjusted EBITDA with Tax Attributes and Adjusted EPS
CONTAINS FORWARD-LOOKING STATEMENTS Expect to be in the Top Half of Adjusted EBITDA1 with Tax Attributes2 and Adjusted EPS3 Adjusted EBITDA1 with Tax Attributes2 Adjusted EPS3 ($ in Millions) ($ Per Share) $3,550- $1.87- $3,950 $1.97 $3,423 $1.76 Year-to-Go Year-to-Go Drivers: Drivers: − Tax Attribu
Slide 18: Expect to be Toward the Low End of 2024 Adjusted EBITDA Guidance
CONTAINS FORWARD-LOOKING STATEMENTS Expect to be Toward the Low End of 2024 Adjusted EBITDA1 Guidance of $2,600-$2,900 Million $ in Millions $2,600- $2,900 $2,750 $30 ($50) ($55) ($40) ($15) Expect to be Toward the − Lower market − Outages in Q2- − Outage in Q2- − Lower availability + New rates Low
Slide 19: 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 ($2,674-$2,774) ($2,674-$2,774) $2,674- $2,774 Shareholder $10 Ending Cash $652 Dividend4 $501 $93
Slide 20: Key Takeaways
CONTAINS FORWARD-LOOKING STATEMENTS Key Takeaways à Executing on strategic priorities in year-to-date 2024: • On track to achieve goal of signing 14-17 GW of renewables PPAs in 2023-2025 − Signed or awarded 9.1 GW in 2023 and year-to-date 2024 • Added 2.8 GW of new projects to operating portfolio •
Slide 21: Appendix
CONTAINS FORWARD-LOOKING STATEMENTS Appendix Parent Only Cash Flow & Liquidity Slides 22-25 Recourse & Non-Recourse Debt Slides 26-28 Q3 & YTD Adjusted EPS1 Roll-Up Slide 29 YTD Financial Results Slides 30-35 Listed Subsidiaries & Public Filers Slides 36-37 AES Modeling Disclosures Slides 38-41 2024
Slide 22: Parent Sources and Uses of Liquidity
CONTAINS FORWARD-LOOKING STATEMENTS Parent Sources and Uses of Liquidity Q3 YTD $ in Millions 2023 2024 2023 2024 Sources Total Subsidiary Distributions1 $311 $204 $872 $888 Proceeds from Asset Sales, Net $78 - $176 $26 Financing Proceeds, Net - - $890 $939 Increased/(Decreased) Credit Facility Comm
Slide 23: Q3 & YTD FY 2024 Subsidiary Distributions
CONTAINS FORWARD-LOOKING STATEMENTS Q3 & YTD FY 2024 Subsidiary Distributions1 $ in Millions Subsidiary Distributions1 by SBU Q3 2024 YTD Renewables $57 $151 Utilities $40 $80 Energy Infrastructure $107 $617 New Energy Technologies - - Corporate2 - $40 Total $204 $888 Top Subsidiary Distributions1 b
Slide 24: Reconciliation of Subsidiary Distributions and Parent Company Liquidity
CONTAINS FORWARD-LOOKING STATEMENTS Reconciliation of Subsidiary Distributions1 and Parent Company Liquidity1 $ in Millions Quarter Ended September 30, June 30, March 31, December 31, 2024 2024 2024 2023 Total Subsidiary Distributions1 to Parent & QHCs2 $204 $298 $386 $536 Total Return of Capital Di
Slide 25: Recourse Debt Summary
CONTAINS FORWARD-LOOKING STATEMENTS Recourse Debt Summary $ in Millions, Except Percentages; as of September 30, 2024 Principal Ratings SBU Balance Interest Rate Maturity Moody’s/S&P/Fitch Term SOFR + Parent Revolver Corporate $530 8/23/27 Baa3/BBB-/BBB- 1.80% Commercial Paper Corporate $613 Variabl
Slide 26: Q3 2024 Non-Recourse Debt Schedule
Q3 2024 Non-Recourse Debt1 Schedule $ in Millions, Except Percentages; as of September 30, 2024 Debt Maturity and Amortization Schedule September September 30, 2024 30, 2024 Ownership 2029 and Total Balance SBU/Business Country/State Total 2024 2025 2026 2027 2028 Percentage Thereafter (Ownership- B
Slide 27: Q3 2024 Non-Recourse Debt Schedule
Q3 2024 Non-Recourse Debt1 Schedule $ in Millions, Except Percentages; as of September 30, 2024 Debt Maturity and Amortization Schedule September September 30, 2024 30, 2024 Ownership 2029 And Total Balance SBU/Business Country/State Total 2024 2025 2026 2027 2028 Percentage Thereafter (Ownership- B
Slide 28: 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 September 30, 2024 Recourse Debt Recourse Non-Recourse Debt2 Debt2 Long-Term Weighted $6,593 Average All-in Cost 4.2% 5.8% 23% Long-Term Weighte
Slide 29: Q3 & YTD Adjusted EPS Roll-Up
CONTAINS FORWARD-LOOKING STATEMENTS Q3 & YTD Adjusted EPS1 Roll-Up $ in Millions, Except Per Share Amounts Q3 2024 Q3 2023 Variance YTD 2024 YTD 2023 Variance Adjusted PTC1 Renewables $435 $184 $251 $676 $322 $354 Utilities $73 $101 ($28) $197 $160 $37 Energy Infrastructure $188 $386 ($198) $578 $74
Slide 30: 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 +$618 contributions from new renewables projects $2,874 Ò Partially offset by: • Record-breaking drought conditions in
Slide 31: YTD 2024 Adjusted EPS Increased $0.57
CONTAINS FORWARD-LOOKING STATEMENTS YTD 2024 Adjusted EPS1 Increased $0.57 $ Per Share $0.56 $0.06 $1.60 ($0.05) YTD 2023: 26% YTD 2024: 22% $1.03 + New projects − Record-breaking drought conditions in South America − Lower margins at Energy Infrastructure businesses YTD 2023 SBUs / Corporate Parent
Slide 32: 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 +$695 contributions from new projects $1,321 Ò Partially offset by: • More than $130 million year-over-yea
Slide 33: YTD 2024 Financial Results: Utilities
CONTAINS FORWARD-LOOKING STATEMENTS YTD 2024 Financial Results: Utilities $ in Millions Adjusted PTC1 Ò Lower Adjusted PTC1 driven primarily by: +$37 • 2023 recovery of AES Ohio costs as a part of ESP42 settlement; and • Higher interest expense from new $197 borrowings Ò Partially offset by: $160 •
Slide 34: YTD 2024 Financial Results: Energy Infrastructure
CONTAINS FORWARD-LOOKING STATEMENTS YTD 2024 Financial Results: Energy Infrastructure $ in Millions Adjusted EBITDA1 Ò Lower Adjusted EBITDA1 driven -$196 primarily by: • Lower margins at Southland; • Lower margins in the Dominican Republic; $1,165 • Outages in Mexico; and • Sell-down of businesses
Slide 35: 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 ($38) ($61) +$23 YTD 2023 YTD 2024 1. A non-GAAP financial measure. See “definitions”. 35
Slide 36: Q3 Adjusted PTC: Reconciliation to Public Financials of Listed Subsidiaries
CONTAINS FORWARD-LOOKING STATEMENTS Q3 Adjusted PTC1: Reconciliation to Public Financials of Listed Subsidiaries & Public Filers AES SBU/Reporting Country Utilities/US AES Company IPL DPL $ in Millions Q3 2024 Q3 2023 Q3 2024 Q3 2023 US GAAP Reconciliation AES Business Unit Adjusted Earnings1,2 $38
Slide 37: Q3 Adjusted EBITDA: Reconciliation to Public Financials of Listed Subsidiaries
CONTAINS FORWARD-LOOKING STATEMENTS Q3 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 Q3 2024 Q3 2023 Q3 2024 Q3 2023 U
Slide 38: Q3 2024 Modeling Disclosures
CONTAINS FORWARD-LOOKING STATEMENTS Q3 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 39: Q3 2024 Modeling Disclosures: Total Debt
CONTAINS FORWARD-LOOKING STATEMENTS Q3 2024 Modeling Disclosures $ in Millions Total Debt as of September 30, 2024 2027 Forecasted Total Debt Ownership- Ownership- Consolidated Attributable to NCI Consolidated Attributable to NCI Adjusted Adjusted Renewables* $8,608 ($1,601) $7,007 $16,200-$17,800 (
Slide 40: Q3 2024 Modeling Disclosures: Cash
CONTAINS FORWARD-LOOKING STATEMENTS Q3 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 $1,289 ($263) $1,026 Utilities1 $151 ($24) $127 DPL $
Slide 41: 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 Fr
Slide 42: 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 Renewables (Excluding Impact of AES + New projects $645 $670-$750 Brasil Sale) − Colombia margins Utilities $678 $690-$77
Slide 43: 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) USD,
Slide 44: 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) 999.21 ~($0.02) Chilean Peso (CLP) 898.98 Less than $0.005
Slide 45: PPAs Signed or Awarded in YTD 2024
CONTAINS FORWARD-LOOKING STATEMENTS PPAs Signed or Awarded 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%
Slide 46: Reconciliation of Q3 Adjusted PTC and Adjusted EPS
CONTAINS FORWARD-LOOKING STATEMENTS Reconciliation of Q3 Adjusted PTC and Adjusted EPS1 Q3 2024 Q3 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 47: 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 48: Reconciliation of Q3 Adjusted EBITDA
CONTAINS FORWARD-LOOKING STATEMENTS Reconciliation of Q3 Adjusted EBITDA1 $ in Millions Q3 2024 Q3 2023 Net Income $210 $291 Income Tax Expense $103 $109 Interest Expense $379 $326 Interest Income ($119) ($144) Depreciation and Amortization $306 $286 EBITDA $879 $868 Less: Income from Discontinued O
Slide 49: Reconciliation of YTD Adjusted EBITDA
CONTAINS FORWARD-LOOKING STATEMENTS Reconciliation of YTD Adjusted EBITDA1 $ in Millions YTD 2024 YTD 2023 Net Income $449 $461 Income Tax Expense $52 $179 Interest Expense $1,125 $966 Interest Income ($312) ($398) Depreciation and Amortization $926 $836 EBITDA $2,240 $2,044 Less: Income from Discon
Slide 50: 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 51: 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 52: 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 53: 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