The AES Corporation Andrs Gluski, President & Chief Executive Officer Bernstein 31st Annual Strategic Decisions Conference May 29, 2015
Agenda Who We Are Building the Energy Company of the Future Value Proposition Contains Forward-Looking Statements 3
Who We Are Contains Forward-Looking Statements 4
AES by the Numbers 18,500 Employees 4 Continents 36 GW in Operation 18 Countries 8 Utilities 10 Million Distribution 6 Customers GW Under Construction Contains Forward-Looking Statements 5
Businesses Managed in Six Strategic Business Units (SBUs) % = 2014 Adjusted Pre-Tax Contribution (PTC)1 Before Corporate Charges 24% 19% Europe Bulgaria Jordan US Netherlands UK Kazakhstan United States 19% Mexico El…
82% of Businesses are Contracted Generation or Utilities 2015 Adjusted PTC1 by Type of Business and Contract Length Generation: Short-Term Sales Utilities (< 2 Years) 18% 18% Generation: 24% Medium-Term Contract Generation:…
Major Achievements Since 2011 l Capital allocation: Exited 10 countries, raising 3 billion in equity proceeds Raised 2.5 billion through partnerships Reduced corporate debt by 25% or 1.9 billion Reduced share count by 14% by…
Already Completed 87% of Expected 2015 Capacity Additions 2015-2018 Construction Program Drives 10%-15% Average Annual Free Cash Flow Growth 1,851 793 2,972 1,515 270 247 77 2012 2013 2014 2015 2016 2017 2018 Completed…
Building the Energy Company of the Future Contains Forward-Looking Statements 10
Building the Energy Company of the Future GROWTH 7 Billion Construction Program World Leader in Battery-Based Energy Storage INNOVATION Starting to Implement Distributed Solar PV Contains Forward-Looking Statements 11
Significant Demand Growth in Many AES Markets Energy Demand Growth 2015-2017 (Annual Average) US 0.5% Andes 4.0% Brazil 1.6% MCAC 3.1% Europe 2.3% Asia 6.8% Source: AES estimates. SBU averages weighted by Adjusted PTC…
AES Distributed Energy Emerging Opportunity: Distributed Solar PV l 65 MW in operation in the United States l Strong solar resources in AES markets l Technology improvements driving competitiveness of solar energy Note:…
AES Energy Storage World Leader in Battery-Based Energy Storage l Emerging opportunity l Well positioned to take advantage Global platform Early mover 8 years of experience l 86 MW in operation in the United States and Chile l…
Expected Growth in Proportional Free Cash Flow1 in Millions Proportional Free Cash Flow1 2016-2018 10%-15% Average Annual Growth 1,000-1,350 891 2014 2015 Guidance 2016-2018 1. As of May 11, 2015. A non-GAAP financial…
Expected Growth in Adjusted EPS1 Adjusted EPS1 1.25-1.35 6%-8% Average Expect Flat to Annual Growth, Modest Growth More Weighted Toward 2018 2015 Guidance 2016 2017-2018 1. As of May 11, 2015. A non-GAAP financial…
Strong and Growing Free Cash Flow Supports Attractive Dividend Growth in Millions Annual Shareholder Dividend Expect 10% Annual Dividend Growth1 282 144 119 30 2012 2013 2014 2015 Expected 2016-2018 1. The Company…
Substantial Cash Available for Value Creation 2015-2018; in Millions Committed Investments in Projects Under Construction 390 Debt Prepayment3 Discretionary Cash to be 345 Allocated 1,404 Share repurchases Incremental growth…
Value Proposition Management team with proven track record Strong position in fast growing markets 10% to 15% expected annual growth in Proportional Free Cash Flow1 Quarterly dividend of 0.10 per quarter with expected 10%…
Executive Compensation Aligned with Shareholders Interests Compensation1 Key Factors Restricted Stock Units 12% Vests over 3 years Stock Options 17% Vests over 3 years 80% Variable Vests over 3 years EBITDA less Maintenance…
Hydrology Colombia, Chile & Argentina Panama Brazil TOTAL In 2014, Chivor in Inflows have Expect 2015 hydro Colombia had improved to close to conditions to be stronger inflows long-term average worse than 2014 versus the rest of…
2015 Parent Capital Allocation Plan in Millions Discretionary Cash Sources Discretionary Cash Uses (1,540-1,640) (1,540-1,640) 1,540- Target Closing 100 Cash Balance 475-575 1,640 Debt Prepayment4 Discretionary Cash to be 159-…
2015 Foreign Exchange (FX) Risk Mitigated Through Structuring of Our Businesses and Active Hedging 2015 Adjusted PTC1 2015 Full Year FX Sensitivity2,3 by by Currency SBU (Cents Per Share) KZT Other FX GBP 4% 1% EUR 2% 7% COP 1.0…
Commodity Exposure is Largely Hedged Through 2016, Long on Natural Gas and Oil in Medium- to Long-Term Full Year 2017 Adjusted EPS1 Commodity Sensitivity2 for 10% Change in Commodity Prices 4.0 Cents Per Share 2.0 0.0 Coal…
Attractive Returns from 2015-2018 Construction Pipeline in Millions, Unless Otherwise Stated Gross Expected Total AES Project Country AES Ownership Fuel MW COD Total Capex Equity ROE Comments Construction Projects Coming On-Line…
Reduced 2015-2018 Parent Debt Maturities from 840 Million to 181 Million in Millions Prepaid 315 Million and Refinanced Majority of Near-Term Maturities with Long-Term Debt 4,836 4,417 525 151 164 181 2015 2016 2017 2018…
Reducing Complexity: Since September 2011, Exited 10 Countries in Millions Proceeds to AES Business Country Remarks September 2011- December 2012 2013 2014 2015 Total Atimus (Telecom) Brazil 284 284 Non-core asset; Paid down 197…
Expanding Access to Capital: Strategic Partners Have Invested 2.5 Billion in Our Subsidiaries in Millions Strategic Business Country Partner 2013 2014 2015 Total Mitsubishi Cochrane Chile Corporation 145 145 Antofagasta Alto…
Reconciliation of Full Year Adjusted PTC1 & Adjusted EPS1 FY 2014 FY 2013 in Millions, Except Per Share Amounts Per Share Per Share Net of NCI2 (Diluted) Net of Net of NCI2 (Diluted) Net of NCI2 and Tax NCI2 and Tax Loss (Income)…
Reconciliation of 2015 Guidance in Millions, Except Per Share Amounts 2015 Guidance Adjusted EPS1 1.25-1.35 Proportional Free Cash Flow1 1,000-1,350 Consolidated Net Cash Provided by Operating 1,900-2,700 Activities…
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