Slide 1: The AES Corporation First Quarter 2025 Financial Review
CONTAINS FORWARD-LOOKING STATEMENTS The AES Corporation First Quarter 2025 Financial Review May 2, 2025
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: Q1 2025 Results in Line with Our Expectations
CONTAINS FORWARD-LOOKING STATEMENTS Q1 2025 Results in Line with Our Expectations Financial Results → Adjusted EBITDA1 of $591 million → Adjusted EPS1 of $0.27 Strategic Highlights → Signed or awarded 443 MW of new PPAs for renewables; backlog now 11.7 GW → Completed construction of 643 MW of renewa
Slide 4: 3.2 GW of New Projects a Major Driver of 2025 Adjusted EBITDA Growth
CONTAINS FORWARD-LOOKING STATEMENTS 3.2 GW of New Projects a Major Driver of 2025 Adjusted EBITDA1 Growth 250 MW Morris Solar 1 GW Bellefield 1 Solar + Storage → Completed in April 2025 → Expected to be fully operational in summer 2025 Year-to-Date 2025, Completed Construction of 643 MW; Remaining ~
Slide 5: Supply Chain Strategy Provides Strong Protections from Tariffs
CONTAINS FORWARD-LOOKING STATEMENTS Supply Chain Strategy Provides Strong Protections from Tariffs ~$501 Million Exposure Represents Only 0.3% of Total US CapEx Share of Estimated Tariff Exposure, Including 2025-2027 Reciprocal Tariffs ($ in Millions) Technology US Backlog 2025 2026 2027 Solar2 55%
Slide 6: We Expect Strong Demand from Our Customers Under Any Scenario
CONTAINS FORWARD-LOOKING STATEMENTS We Expect Strong Demand from Our Customers Under Any Scenario We Have Signed 9.5 GW Directly with We Expect Renewables to be the Primary Technology Customers Source of New Energy 2.1 0.3 9.51 1 Fastest time to power 7.11 Other 1.5 2 Low-cost source of power 1.8 3.
Slide 7: Nearly Entire US Backlog has Safe Harbor Protections
CONTAINS FORWARD-LOOKING STATEMENTS Nearly Entire US Backlog has Safe Harbor Protections → Safe harboring can be achieved → Projects that are safe harbored have through start of construction or four years to complete construction incurring 5% of cost of materials and begin receiving tax credits 7
Slide 8: Resilient to a Possible Economic Downturn
CONTAINS FORWARD-LOOKING STATEMENTS Resilient to a Possible Economic Downturn → Two-thirds of Adjusted EBITDA1 from long-term contracted generation • Take-or-pay and not tied to demand Business Model → Nearly all growth through 2027 secured through 11.7 GW backlog Protections → At time of PPA signin
Slide 9: Robust Growth Program at US Utilities
CONTAINS FORWARD-LOOKING STATEMENTS Robust Growth Program at US Utilities → 2.1 GW of new data centers in AES Ohio’s → Investing in generation to support customers service territory with affordable and reliable power → Expect to break ground this summer on $500 • Completed 200 MW Pike County energy
Slide 10: Q1 2025 Financial Review
CONTAINS FORWARD-LOOKING STATEMENTS Q1 2025 Financial Review → Q1 2025 financial results → 2025 guidance → 2025 Parent capital allocation plan 10
Slide 11: Q1 2025 Financial Results
CONTAINS FORWARD-LOOKING STATEMENTS Q1 2025 Financial Results $ in Millions Adjusted EBITDA1,2 Lower Adjusted EBITDA1,2 driven primarily by: -$49 • Prior year Warrior Run coal plant PPA monetization ($84 million); and $640 $591 • Sale of AES Brasil ($32 million) Partially offset by growth in our
Slide 12: Q1 2025 Financial Results: Adjusted EPS Decreased $0.23
CONTAINS FORWARD-LOOKING STATEMENTS Q1 2025 Financial Results: Adjusted EPS1 Decreased $0.23 $ Per Share $0.50 ($0.14) $0.27 ($0.06) ($0.01) ($0.02) − Prior year Warrior Run Q1 2024: 8% coal plant PPA Q1 2025: 17% monetization + Higher contributions from Utilities SBU 2 Q1 2024 SBUs/Corporate Timing
Slide 13: Q1 2025 Financial Results: Renewables
CONTAINS FORWARD-LOOKING STATEMENTS Q1 2025 Financial Results: Renewables1 $ in Millions Adjusted EBITDA2,3 Higher Adjusted EBITDA2,3 driven primarily by: +$50 • Contributions from new projects; and $161 • Chile renewables segment change Partially offset by the sale of AES Brasil $111 Q1 2024 Q1
Slide 14: Q1 2025 Financial Results: Utilities
CONTAINS FORWARD-LOOKING STATEMENTS Q1 2025 Financial Results: Utilities $ in Millions Adjusted PTC1 Higher Adjusted PTC1 driven primarily by: • Tax attributes associated with the +$80 completion of the Pike County energy storage project; $121 • New rates at AES Indiana; $58 • Demand growth; and T
Slide 15: Q1 2025 Financial Results: Energy Infrastructure
CONTAINS FORWARD-LOOKING STATEMENTS Q1 2025 Financial Results: Energy Infrastructure1 $ in Millions Adjusted EBITDA2 Lower Adjusted EBITDA2 driven primarily by: -$102 • Lower revenues due to prior year Warrior Run coal plant PPA monetization; and $356 • Chile renewables segment change $254 Q1 2024
Slide 16: Q1 2025 Financial Results: New Energy Technologies
CONTAINS FORWARD-LOOKING STATEMENTS Q1 2025 Financial Results: New Energy Technologies $ in Millions Adjusted EBITDA1 Lower Adjusted EBITDA1 driven primarily by lower contributions from Fluence ($17) ($25) -$8 Q1 2024 Q1 2025 1. A non-GAAP financial measure. See Appendix for definition and reconci
Slide 17: 2025 Adjusted EBITDA Guidance
CONTAINS FORWARD-LOOKING STATEMENTS 2025 Adjusted EBITDA1 Guidance $ in Millions $2,650- $2,850 $150 $15 $2,639 $255 ($49) ($140) ($120) − AES Brasil + New projects − AES Ohio + Rate base growth − Global Insurance + Colombia normalization 2024 Adjusted Q1 2025 vs. Asset Sales Warrior Run Renewables
Slide 18: 2025 Adjusted EPS Guidance
CONTAINS FORWARD-LOOKING STATEMENTS 2025 Adjusted EPS1 Guidance $2.10- $0.44 $2.26 $2.14 ($0.07) ($0.10) ($0.23) + New projects 2024: 23% + Utilities growth 2025: 27%-29% + Colombia and Mexico normalization + Cost savings − Warrior Run and Southland FY 2024 Q1 2025 vs. SBUs/Corporate Parent Interest
Slide 19: 2025 Parent Capital Allocation Plan
CONTAINS FORWARD-LOOKING STATEMENTS 2025 Parent Capital Allocation Plan $ in Millions Discretionary Cash – Sources Discretionary Cash – Uses ($2,615-$2,815) ($2,615-$2,815) $2,615- Ending Cash $400- $2,815 $10 & Other $500 $100 Shareholder Dividend3 $700 $545 $1,150- $1,250 Subsidiary Debt $1,660- R
Slide 20: Credit Metrics Progressing in Line with Our Expectations
CONTAINS FORWARD-LOOKING STATEMENTS Credit Metrics Progressing in Line with Our Expectations → Received asset sale proceeds of $450 million for sell-down of global insurance business → Completed sell-down of AES Ohio, which enabled S&P’s recent one and two notch credit rating upgrades for DPL Inc. a
Slide 21: Conclusion
CONTAINS FORWARD-LOOKING STATEMENTS Conclusion → Long-term contracted business model continues to demonstrate its resilience to tariffs, economic policies and business cycles → Our core corporate customers have significant energy needs and we are seeing resilient demand from hyperscalers in any scen
Slide 22: Appendix
CONTAINS FORWARD-LOOKING STATEMENTS Appendix Parent Only Cash Flow & Liquidity Slides 23-25 Recourse & Non-Recourse Debt Slides 26-29 Q1 Adjusted EPS1 Roll-Up Slide 30 Public Filers Slide 31 AES Modeling Disclosures Slides 32-35 2025 SBU Modeling Ranges Slide 36 Long-Term Growth Plan Slides 37-38 20
Slide 23: Parent Sources and Uses of Liquidity
CONTAINS FORWARD-LOOKING STATEMENTS Parent Sources and Uses of Liquidity Q1 $ in Millions 2024 2025 Sources Total Subsidiary Distributions1 $386 $230 Proceeds from Asset Sales, Net $15 - Financing Proceeds, Net - $796 Increased/(Decreased) Credit Facility Commitments - - Total Returns of Capital Dis
Slide 24: Q1 2025 Subsidiary Distributions
CONTAINS FORWARD-LOOKING STATEMENTS Q1 2025 Subsidiary Distributions1 $ in Millions Subsidiary Distributions1 by SBU Q1 2025 Renewables $78 Utilities $67 Energy Infrastructure $84 New Energy Technologies $1 Corporate2 - Total $230 Top Subsidiary Distributions1 by Business Q1 2025 Business Amount Bus
Slide 25: Reconciliation of Subsidiary Distributions and Parent Company Liquidity
CONTAINS FORWARD-LOOKING STATEMENTS Reconciliation of Subsidiary Distributions1 and Parent Company Liquidity1 $ in Millions Quarter Ended March 31, December 31, September 30, June 30, 2025 2024 2024 2024 Total Subsidiary Distributions1 to Parent & QHCs2 $230 $715 $204 $298 Total Return of Capital Di
Slide 26: Recourse Debt Summary
CONTAINS FORWARD-LOOKING STATEMENTS Recourse Debt Summary $ in Millions, Except Percentages; as of March 31, 2025 Ratings SBU Principal Balance Interest Rate Maturity Moody’s/S&P/Fitch Parent Revolver Corporate $0 Term SOFR + 1.80% 8/23/27 Baa3/BBB-/BBB- Parent Revolver Corporate $0 Term SOFR + 1.80
Slide 27: Q1 2025 Non-Recourse Debt Schedule
CONTAINS FORWARD-LOOKING STATEMENTS Q1 2025 Non-Recourse Debt1 Schedule $ in Millions, Except Percentages; as of March 31, 2025 Debt Maturity and Amortization Schedule March 31, March 31, 2025 Ownership 2025 Total 2030 and Total Balance SBU/Business Country/State Balance 2025 2026 2027 2028 2029 (Ow
Slide 28: Q1 2025 Non-Recourse Debt Schedule
CONTAINS FORWARD-LOOKING STATEMENTS Q1 2025 Non-Recourse Debt1 Schedule $ in Millions, Except Percentages; as of March 31, 2025 Debt Maturity and Amortization Schedule March 31, 2025 March 31, Total Balance Ownership 2025 Total 2030 And SBU/Business Country/State 2025 2026 2027 2028 2029 (Ownership-
Slide 29: Substantial Majority of Interest Rate Exposure is Hedged Through Swaps or Contractual Arrangements
CONTAINS FORWARD-LOOKING STATEMENTS Substantial Majority of Interest Rate Exposure is Hedged Through Swaps or Contractual Arrangements $ in Millions, as of March 31, 2025 Recourse Debt1 Non- Recourse Recourse Debt2 Debt2 $5,305 18% Long-Term Weighted Average All-in Cost 4.7% 5.5% Long-Term Weighted
Slide 30: Q1 Adjusted EPS Roll-Up
CONTAINS FORWARD-LOOKING STATEMENTS Q1 Adjusted EPS1 Roll-Up $ in Millions, Except Per Share Amounts Q1 2025 Q1 2024 Variance Adjusted PTC1 Renewables ($2) $141 ($143) Utilities $121 $41 $80 Energy Infrastructure $152 $221 ($69) New Energy Technologies2 ($26) ($18) ($8) Corporate ($84) ($49) ($35) T
Slide 31: Q1 Adjusted PTC: Reconciliation to Public Financials of Public Filers
CONTAINS FORWARD-LOOKING STATEMENTS Q1 Adjusted PTC1: Reconciliation to Public Financials of Public Filers AES SBU/Reporting Country Utilities/US AES Company IPL DPL $ in Millions Q1 2025 Q1 2024 Q1 2025 Q1 2024 US GAAP Reconciliation AES Business Unit Adjusted Earnings1,2 $73 $12 $4 $3 Adjusted PTC
Slide 32: Q1 2025 Modeling Disclosures
CONTAINS FORWARD-LOOKING STATEMENTS Q1 2025 Modeling Disclosures $ in Millions Depreciation, Amortization & Accretion of Interest Expense Interest Income Adjusted AROs PTC1 Attributable Ownership- Attributable Ownership- Attributable Ownership- Consolidated Consolidated Consolidated to NCI Adjusted
Slide 33: Q1 2025 Modeling Disclosures
CONTAINS FORWARD-LOOKING STATEMENTS Q1 2025 Modeling Disclosures $ in Millions Cash & Cash Equivalents, Restricted Cash, Short-Term Investments, Debt Total Debt as of March 31, 2025 Service Reserves & Other Deposits Consolidated Attributable to NCI Ownership-Adjusted Consolidated Attributable to NCI
Slide 34: FY 2027 Net Debt Expectation
CONTAINS FORWARD-LOOKING STATEMENTS FY 2027 Net Debt1 Expectation $ in Millions 2027 Forecasted Net Debt1 Consolidated Attributable to NCI Ownership-Adjusted Renewables* $15,500-$17,100 ($3,800)-($4,400) $11,700-$12,700 Utilities $6,900-$7,500 ($1,900)-($2,100) $5,000-$5,400 Energy Infrastructure $4
Slide 35: AES Modeling Disclosures
CONTAINS FORWARD-LOOKING STATEMENTS AES Modeling Disclosures $ in Millions 2025 Subsidiary Distributions (a) $1,650-$1,750 Cash Interest (b) ($225) Corporate/Parent-Funded SBU Overhead ($235) Business Development/Taxes ($40) Cash for Development, General & Administrative and Tax (c) ($275) Parent Fr
Slide 36: 2025 SBU Modeling Ranges
CONTAINS FORWARD-LOOKING STATEMENTS 2025 SBU Modeling Ranges $ in Millions 2025 Adjusted EBITDA1 2024 Adjusted EBITDA1 Drivers of Growth Versus 2024 Modeling Ranges as of 2/28/25 + New projects + Colombia normalization Renewables2 $552 $890-$960 + Cost savings + Chile renewables segment change − Sal
Slide 37: Reaffirming 2023-2027 Long-Term Growth Plan
CONTAINS FORWARD-LOOKING STATEMENTS Reaffirming 2023-2027 Long-Term Growth Plan $ in Millions Adjusted EBITDA1 Parent Free Cash Flow2 5%-7% 6%-8% Average Average Annual Growth Annual Growth $2,750 Long-Term Drivers: $975 Long-Term Drivers: + Completion of majority + Adjusted EBITDA of projects in ba
Slide 38: Expected SBU Adjusted EBITDA Average Annual Growth Rates
CONTAINS FORWARD-LOOKING STATEMENTS Expected SBU Adjusted EBITDA1 Average Annual Growth Rates2 $ in Millions Renewables SBU Utilities SBU Energy Infrastructure SBU 19%- 21% $1,535 13%- 15% (9%)- (11%) $695 $635 2023 Guidance 2027 2023 Guidance 2027 2023 Guidance 2027 1. A non-GAAP financial measure.
Slide 39: 2025-2027 Parent Capital Allocation Plan
CONTAINS FORWARD-LOOKING STATEMENTS 2025-2027 Parent Capital Allocation Plan $ in Millions Discretionary Cash – Sources Discretionary Cash – Uses ($6,065-$6,365) ($6,065-$6,365) $6,065- Ending Cash $800- $10 & Other $1,200 $6,365 $200 Shareholder $900- Dividend3 $3,600- $1,100 $1,640 $3,900 $3,815-
Slide 40: Limited Exposure to Fluctuations in Foreign Currency
CONTAINS FORWARD-LOOKING STATEMENTS Limited Exposure to Fluctuations in Foreign Currency 2025-2027 Cumulative Exposure Annualized Impact1 of 10% USD Appreciation Composition by Currency on Adjusted PTC2,3 After Hedging Non-USD Currencies $ in Millions Argentine Peso (ARS) ($8) EUR, 3% Euro (EUR) ($4
Slide 41: 2025 Guidance Estimated Sensitivities
CONTAINS FORWARD-LOOKING STATEMENTS 2025 Guidance Estimated Sensitivities YTG 2025 10% appreciation of USD against following currencies is forecasted to have the following Adjusted EPS impacts: Average Rate Sensitivity Argentine Peso (ARS)1 1121.57 Less than ($0.01) Chilean Peso (CLP) 952.09 Less th
Slide 42: Reconciliation of Q1 Adjusted PTC and Adjusted EPS
CONTAINS FORWARD-LOOKING STATEMENTS Reconciliation of Q1 Adjusted PTC and Adjusted EPS1 Q1 2025 Q1 2024 Per Share (Diluted) Per Share (Diluted) Net of NCI2 Net of NCI2 $ in Millions, Except Per Share Amounts Net of NCI2 Net of NCI2 Income from Continuing Operations, Net of Tax, Attributable to AES a
Slide 43: Reconciliation of Q1 Adjusted EBITDA
CONTAINS FORWARD-LOOKING STATEMENTS Reconciliation of Q1 Adjusted EBITDA1 $ in Millions Q1 2025 Q1 2024 Net Income ($73) $278 Income Tax Expense (Benefit) $17 ($16) Interest Expense $342 $357 Interest Income ($69) ($105) Depreciation, Amortization, and Accretion of AROs $337 $318 EBITDA $554 $832 Le
Slide 44: 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 NCI 2 Income (Loss) from Continuing Operations, Net of Tax, Attributable to AES and Diluted EPS $43 $0.06 Add: Income Tax
Slide 45: Reconciliation of FY Adjusted EBITDA
CONTAINS FORWARD-LOOKING STATEMENTS Reconciliation of FY Adjusted EBITDA1 $ in Millions FY 2024 FY 2023 Net Income (Loss) $802 ($182) Income Tax Expense $59 $261 Interest Expense $1,485 $1,319 Interest Income ($381) ($551) Depreciation, Amortization, and Accretion of AROs $1,264 $1,147 EBITDA $3,229
Slide 46: Reconciliation of Parent Free Cash Flow
CONTAINS FORWARD-LOOKING STATEMENTS Reconciliation of Parent Free Cash Flow1 $ in Millions 2024 2023 2022 2021 2020 Net Cash Provided by Operating Activities at the Parent Company2 $731 $608 $434 $570 $434 Subsidiary Distributions to QHCs Excluded from Schedule 13 $233 $247 $257 $47 $198 Subsidiary
Slide 47: 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 48: 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, amortizatio n, and accretion of AROs. We define Adjusted EBITDA as EBITDA adjusted for the impact of NCI and interest, t