Slide 1: AES Corporation
AES Corporation April 5-6, 2005 Barry Sharp Executive Vice President and Chief Financial Officer
Slide 2: Safe Harbor Disclosure
AS Safe Harbor Disclosure “The Giobal 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 earnings, growth and financia
Slide 3: One of the Largest Global Power Companies
AS One of the Largest Global Power “The Gobel Power Company Companies Contains Forward Looking Statements = Operations in 27 countries on 5 continents = Capacity to serve 100 million people = $9.5 billion in revenues = $30 billion in assets 3 www.aes.com
Slide 4: Excellence in execution
Contains Forward Looking Statements = Excellence in execution — Continued strong financial performance — Above market EPS growth — Strong operating model — Performance improvements = Sustained value creation — AES distinctiveness — Well-defined growth strategies and approach 4 www.aes.com
Slide 5: Revenue, gross margin and ROIC outlook to 2008E
Revenue ($Billions) 2003 - 2008E CAGR 6% go5 $110 - ai \§ 2004 2008E Gross Margin as % of Sales 2003 — 2008E Improvement to 31% 289% 29.2% 31% 2003 2004 2008E $24 2003 Contains Forwarel Looking Statements Gross Margin (SBillions) 2003 - 2008E CAGR 8% Ls $3.5 2008E Return on Invested Capital 2008E Im
Slide 6: 2003-2004 Goals and Results
2003-2004 Goals Results Complete business restructuring Achieved Completed $6 billion debt restructuring? re-profiling/refinancing transactions Reduce parent debt by $2 billion Achieved Achieve $200 million performance Improvement run-rate by year-end 2004 Achieved Improve credit quality Rating agen
Slide 7: Strong Free Cash Flow and Improving Credit Quality
AS Strong Free Cash Flow and Te Global Power Company Improving Credit Quality ($ Millions) Contains Forward Looking Statements 2005E Subsidiary Net Cash From Operating Activities* $2,550-$2,650 Less: Corporate Interest Expense and Overhead** ($650) Net Cash From Operating Acti $1,900-$2,000 Less: Ma
Slide 8: Projected EPS Growth Rate 2004-2008
Contains Forward Looking Statements Projected EPS Growth Rate 2004-2008* Projected §-Year . Tt 2 23% 5 20 19% é 17% co 13% 10! 2 & 0 Base Reinvestment Reinvestment Growth Case Contribution Case Case Base Case Organic growth, deleveraging and perfomance improvernents Reinvestment Case New investments
Slide 9: Successful 2003-2004 Growth Program
Ss Successful 2003-2004 The Global Power Company Growth Program Completed 8 projects in 7 countries — Over 2,100 MW new capacity online (90%+ contract generation) — $640 million annual incremental revenue Project MW Fuel Location Ras Laffan 756 Gas Qatar Barka 427 Gas Oman Huntington Beach 3/4 225 G
Slide 10: Two Core Business Units
AS Two Core Business Units ‘The Global Power Company 2004 Income Before Tax, Minority 2004 Revenue Interest and Corporate Costs $9.5 Billion $1.6 Billion™ Utilities Generation 41% A8% tig Generation 52% 59% © Utilities 1) Generation™ 75% Revenue From IPL (US), 78% Revenue Long-Term Contracts, Eletro
Slide 11: Generation Business Drivers
“The Giobal Power Company Characteristics Generation Business Drivers Contains Forward Looking Statements Business Drivers Sales to local utilities or wholesale customers under long-term contracts (contract generation) Stable cash flows Variable margins (revenue less fuel cost) are largely hedged Hi
Slide 12: AES Generation Fleet EFOR
7.5%. 6.7% 5.5% | wa. Better 2002 2003 2004 AES Generation Fleet - EFOR* (Year End Average) * Equivalent Forced Outage Rate 12 www.aes.com
Slide 13: Utilities Business Drivers
Characteristics Contains Forward Looking Statements Business Drivers Sales to individuals, businesses, and governments Franchised positions Regulated prices Demand reflects local economy Transportation and distribution only or integrated utilities with generation 17 utlities in 9 countries Attractiv
Slide 14: Improving Collections
Customer Data Analysis Process Improving Collections 103% 98% Getting Better 7 | 2002 2003 2004 Collections as % of Revenue 14 www.aes.com
Slide 15: Systematic Approach to Energy Loss Reduction
Implementing Systematic Approach to Energy Loss Reduction 22% 18% 16% Getting Better Compensated in Rates: 16.9% 2002 2003 2004 Annual Energy Loss (%) 15 www.aes.com
Slide 16: SAIFI and SAIDI Reliability Metrics
System Average Interruption Frequency (SAIF!) System Average Interruption Duration (SAIDI) (LTM Rolling Average) (LTM Rolling Average) 0.95 0.85 ogo 4 53.2 Getting Better 60 56 075 0 oz1 70 www.aes.com 16
Slide 17: Source of Value Drivers
Source Contains Forward Looking Statements Drivers Global expertise Network of AES energy professionals Knowledge of local markets, banks, competitors, customers, etc Knowledge of risks, mitigation tools, ete Credibility Leveraging critical presence: relationships, assets, contracts in local markets
Slide 18: Growth Focus: Near and Medium Term
“The Giobal Power Company Platform Expansion Greenfield Privatization Acquisitions Growth Focus — Near and Medium Term Contains Forward Looking Statements California El Salvador Kazakhstan Bulgaria LNG in Bahamas. Russia, India, Southeast Asia, Middle East Wind in US and Europe Eastern Europe Turkey
Slide 19: Growth Focus: Longer Term
AS Growth Focus — Longer Term “The Giobal Power Company Contains Forward Looking Statements Continue to maintain robust pipeline of quality projects = Expansion in markets with growing need for power (e.g. China, India and Russia) Platform Expansion = Wind generation outside US Greenfield and Europe
Slide 20: Why Invest in AES?
AS Why Invest in AES? “The Global Power Company Contains Forward Looking Statements = Diversified portfolio = Above average earings 2 ad growth outlook L = Strong free cash flow Vu = Financial discipline = Improving credit quality = Long-term growth potential = Incentives aligned with shareholders 2
Slide 21: Appendix: Reconciliation of Adjusted Earnings Per Share
AS Appendix — Reconciliation of Tha Global Power Company Adjusted Earnings Per Share ($Per Share) 2004 2003 Adjusted Earnings Per Share* $0.73 $0.56 FAS 133 Mark-to-Market Gains/(Losses)* (0.06) (0.07) Currency Transaction Gains(Losses) (002) a19 Net Asset Gains/(Losses and Impairments) (0.08) (0.24
Slide 22: Forecast assumptions
Forecasted financial information is based on certain material assumptions. Such assumptions include, but are not limited to (a) we assume continued normal levels of operating performance and electricity demand at our distribution companies, (b) we assume operational performance at our contract gener
Slide 23: Searchable text section of graphics
Searchable text section of graphics shown above AES Corporation April 5-6, 2005 Barry Sharp Executive Vice President and Chief Financial Officer [LOGO] [GRAPHIC] www.aes.com [ LOG O] Safe Harbor Disclosure Certain statements in the following presentation regarding AES’s business operations may const