The AES Corporation · NYSE:AES
The AES — Investor Presentation (June 2024)
16 slides from The AES's investor presentation, June 2024
Slide 1: The AES Corporation
The AES Corporation June 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: Clear & Growing Demand for US Renewables
CONTAINS FORWARD-LOOKING STATEMENTS Clear & Growing Demand for US Renewables AES’ Global Operating & Development Portfolio 66 GW 12.7 GW 34.9 GW Pipeline Backlog Operations à Includes at least partial à Signed contracts that are à 54% renewables land control for each not yet operational, with projec
Slide 4: Data Center Load Has Grown Significantly Over Past Decade; Explosive Future Growth Projections
CONTAINS FORWARD-LOOKING STATEMENTS Data Center Load Has Grown Significantly Over Past Decade; Explosive Future Growth Projections US Data Center Demand1, à US data center demand grew by 10 Capacity in GW GW over the past decade, mostly 60 met by renewable energy 50 à Exponential growth projections
Slide 5: AES is Best Positioned to Serve Growing Demand for Renewables
CONTAINS FORWARD-LOOKING STATEMENTS AES is Best Positioned to Serve Growing Demand for Renewables AES’ Competitive Advantages Track Scale Innovation Record 24/7 CFE PJM Retail, 500 MW Delta, Mississippi, 185 MW Raceway 1, California, 205 MW 5
Slide 6: AES is One of the Largest Developers Providing Energy Solutions to Technology Companies
CONTAINS FORWARD-LOOKING STATEMENTS AES is One of the Largest Developers Providing Energy Solutions to Technology Companies 5.91 24/7 Carbon-Free Energy by 2030 0.8 à Matching 100% of electricity with renewables 1.7 100/100/0 Commitment by 2030 à Reaching 100% renewable energy by 2025 3.1 100% Renew
Slide 7: Increased US Project Returns
CONTAINS FORWARD-LOOKING STATEMENTS Increased US Project Returns1 Targeted Levered After-Tax Cash Returns 12%-15% 10%-13% Prior New Strong Market Demand & AES’ Leading Position Enables Project Selectivity 1. Increased in February 2024. 7
Slide 8: Reaffirmed 2024 Guidance
CONTAINS FORWARD-LOOKING STATEMENTS Reaffirmed 2024 Guidance1 Adjusted EBITDA2 with Tax Attributes3 Adjusted EPS4 ($ in Millions) ($ Per Share) $3,550- $1.87- $3,950 $1.97 $3,423 $1.76 + New renewables + Adjusted + Utilities growth EBITDA1 with + Chile margins Tax Attributes2 − Prior year LNG driver
Slide 9: More Than Halfway Toward $3.5 Billion Asset Sale Proceeds Target for 2023-2027
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 10: Appendix
CONTAINS FORWARD-LOOKING STATEMENTS Appendix Substantial Majority of Outstanding Debt is Non-Recourse to AES Corp. Slide 11 Capital-Efficient Renewables Funding Model Slide 12 Reconciliations Slides 13-14 Assumptions & Definitions Slides 15-16 10
Slide 11: Substantial Majority of Outstanding Debt is Non-Recourse to AES Corp.
CONTAINS FORWARD-LOOKING STATEMENTS Substantial Majority of Outstanding Debt is Non- Recourse to AES Corp. Total Debt 18% Recourse Debt Construction to AES Corp. Debt1 13% 82% Non- Recourse Debt à Financing secured by underlying project(s) alone with no broader risk to AES Corp. Other Non-Recourse D
Slide 12: Capital-Efficient Renewables Funding Model
CONTAINS FORWARD-LOOKING STATEMENTS Capital-Efficient Renewables Funding Model Example of a US Renewables Project Sources & Uses (% of Project Capex) 100% 40% 40% 2.5% 10% 7.5% Total Project Capex Cash from Tax Amortizing DevCo Partner OpCo Partner AES Long-Term Attributes1 Non-Recourse Debt Equity
Slide 13: Reconciliation of FY Adjusted PTC and Adjusted EPS
CONTAINS FORWARD-LOOKING STATEMENTS Reconciliation of FY Adjusted PTC and Adjusted EPS1 FY 2023 FY 2022 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 (Loss) from Continuing Operations, Net of Tax, Attributable t
Slide 14: Reconciliation of FY Adjusted EBITDA
CONTAINS FORWARD-LOOKING STATEMENTS Reconciliation of FY Adjusted EBITDA1 $ in Millions FY 2023 FY 2022 Net Loss ($182) ($505) Income Tax Expense $261 $265 Interest Expense $1,319 $1,117 Interest Income ($551) ($389) Depreciation and Amortization $1,128 $1,053 EBITDA $1,975 $1,541 Less: Income from
Slide 15: 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 16: 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