The document provides an overview and financial results for AES Corporation for the fourth quarter and full year of 2008. Some key points: - Full year 2008 operating cash flow and free cash flow met guidance at $2.2 billion each. Subsidiary distributions totaled $1.1 billion. - Fourth quarter operating cash flow was $579 million and free cash flow was $314 million. Subsidiary distributions were $386 million. - 2009 guidance forecasts operating cash flow of $2.1-2.3 billion, free cash flow of $1.4-1.6 billion, and subsidiary distributions of $1.1-1.3 billion.

1. The AES Corporation
Fourth Quarter & Full Year 2008
Financial Review
February 27, 2009

2. Contains Forward Looking Statements
Safe Harbor Disclosure
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 financial and operating performance.
Forward-looking statements are not intended to be a guarantee of future results, but instead
constitute AES’s current expectations based on reasonable assumptions. Forecasted financial
information is based on certain material assumptions. These assumptions include, but are not
limited to accurate projections of future interest rates, commodity prices and foreign currency
pricing, continued normal or better levels of operating performance and electricity demand at our
distribution companies and operational performance at our generation businesses consistent
with historical levels, as well as achievements of planned productivity improvements and
incremental growth from investments at investment levels and rates of return consistent with
prior experience. For additional assumptions see the Appendix to this presentation. Actual
results could differ materially from those projected in our forward-looking statements due to
risks, uncertainties and other factors. Important factors that could affect actual results are
discussed in AES’s filings with the Securities and Exchange Commission including but not
limited to the risks discussed under Item 1A “Risk Factors” in the Company’s Annual Report on
Form 10-K for the year ended December 31, 2008, as well as our other SEC filings. AES
undertakes no obligation to update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise.
2

3. Contains Forward Looking Statements
Fourth Quarter & Full Year 2008 Results
Overview
Update on Q3 initiatives to strengthen liquidity and reassess
development pipeline
Met targets for 2008 cash flow
Full Year & Fourth Quarter 2008 financial results
Key performance drivers
Update on financial operations
Manageable debt profile
2009 Guidance
Construction program of 3,400 MW on schedule
3

4. Contains Forward Looking Statements
Full Year 2008 Financial Highlights
2008 Guidance1 2008 Actual 2007 Actual
$2.2 billion2,3
Consolidated Operating Cash Flow $2.2 billion $2.2 billion
$1.4 billion2,3
Consolidated Free Cash Flow $1.4 billion $1.4 billion
Subsidiary Distributions4 $1.0-$1.1 billion $1.1 billion $1.1 billion
Gross Margin $3.7-$3.8 billion $3.7 billion $3.4 billion
Diluted Earnings Per Share from Continuing Operations $2.07 $1.80 $0.72
Adjusted Earnings Per Share2 $1.07 $0.99 $1.01
In 2008, Gross Margin increased 9% primarily due to improved performance at Latin American and
European generation businesses, as well as favorable foreign currency exchange rates
Diluted Earnings Per Share from Continuing Operations of $1.80 includes a gain from sale of northern
Kazakhstan assets
Actual 2008 EPS was $0.27 lower compared to guidance, primarily due to FAS 133 mark-to-market losses,
impairments, foreign currency transaction losses, as well as higher tax rate
Adjusted Earnings Per Share2 of $0.99 includes $0.19 of foreign currency transaction charges
Guidance given November 7, 2008.
1.
A non-GAAP financial measure. See Appendix for definition and reconciliation.
2.
Excludes contributions from EDC, a business AES sold in May 2007. See Appendix for reconciliation.
3.
See Appendix for definition.
4.
4

5. Contains Forward Looking Statements
Fourth Quarter 2008 Financial Highlights
Fourth Quarter
2008 Actuals 2007 Actuals
Consolidated Operating Cash Flow $579 million $482 million
Consolidated Free Cash Flow1 $314 million $283 million
Subsidiary Distributions2 $386 million $343 million
Gross Margin $674 million $809 million
Diluted Earnings (Loss) Per Share from Continuing Operations ($0.10) $0.00
Adjusted Earnings Per Share1 $0.18 $0.19
Gross Margin in 2008 declined by $135 million, reflecting weaker foreign currency exchange rates and
$85 million of non-cash charges primarily from mark-to-market derivative losses
Diluted Earnings Per Share include $0.25 of non-cash losses resulting from impairments and FAS 133
mark-to-market adjustments; also include $0.11 impact of foreign currency transaction charges of
which only $0.03 are excluded from Adjusted EPS
Adjusted EPS1 includes $0.08 of foreign currency transaction charges
1. A non-GAAP financial measure. See Appendix for definition and reconciliation.
2. See Appendix for definition.
5

6. Contains Forward Looking Statements
Manageable Debt Profile
In Millions, as of December 31, 2008
At year end, Parent Company
Liquidity1 plus Subsidiary Parent
Subsidiaries Total
Company
Liquidity2 was $3.2 billion
Cash & Cash
Total Debt due in 2009 is 247 656 903
Equivalents
$1.2 billion
Bank Lines of Credit 1,143 1,138 2,281
1,3901 1,7942
Total Liquidity 3,184
Debt
Maturities
Restricted Cash - 729 729
2009
1,3824 1,3824
Short-Term Investments -
Parent Company – Recourse Debt 154
Debt Service Reserve
1,0743 - 636 636
Subsidiaries – Non-Recourse Debt Accounts
Total Liquidity Plus
Total Debt Due in 2009 1,228 Additional Financial 1,390 4,541 5,931
Assets
1.This number represents Parent Liquidity. See Appendix.
2.This number represents Subsidiary Liquidity. See Appendix
3.Includes: Brazil, including Eletropaulo, Tiete & Sul $162 million, Middle East (Oman, Jordan and Pakistan) $157 million and Chigen (China) $73 million.
4.Includes: $1,195 million in Brazil.
Note: The numbers presented above are consolidated. Because the Company’s individual subsidiaries rely primarily on non-recourse debt, they may not have access to consolidated
liquidity and will instead rely upon their individual ability to manage their obligations. In addition, the Parent Company may not have access to the liquidity at various subsidiaries due to
various restrictions.
6

7. Contains Forward Looking Statements
Consolidated Debt Is Well-Hedged
As of December 31, 2008
Debt Currency v. Revenue Currency Fixed v. Floating Rate Debt
$18.1 Billion $18.1 Billion
Matched Currency Floating Rate Debt
$16.9 billion $3.5 billion
94%
19%
81%
6%
Fixed Rate Debt1
Cross Currency
$14.6 billion
$1.2 billion
AES generally attempts to match the currency of its debt to the currency of the revenues at
each of its businesses
AES has a policy to maintain a net floating rate debt level in the range of 15-25%
1. Fixed rate debt includes the notional amounts related to interest rate swaps.
7

8. Contains Forward Looking Statements
Other Financial Updates
Full remediation of material weaknesses
Completed remediation of 10 material weaknesses, including 2 in 2008
Clarifying definition of Adjusted Earnings Per Share1 to better
reflect the economic results of the underlying businesses
Current definition (effective through December 31, 2008) excludes
cash and non-cash foreign currency transaction gains or losses from
Argentina and Brazil
Updated definition (effective as of January 1, 2008) excludes non-cash
foreign currency transaction gains or losses from all countries
Introducing proportional financial metrics to provide additional
transparency
AES’s effective economic interest in subsidiaries
1. A non-GAAP financial measure. See Appendix for definition.
8

9. Contains Forward Looking Statements
2009 Guidance
($ in Millions), Except Earnings Per Share
Consolidated Proportional
$1,200-$1,3501
Operating Cash Flow $2,100-$2,300
Free Cash Flow1 $650-$8501
$1,400-$1,600
$2,050-$2,1501
Gross Margin $3,200-$3,400
Subsidiary Distributions2 $1,100-$1,300
Diluted Earnings Per Share $0.87-$0.97
Adjusted Earnings Per Share1 $0.97-$1.07
Reaffirming previously disclosed Subsidiary Distribution guidance of $1.1-$1.3 billion
Lowering Adjusted EPS1 guidance from $1.15-$1.20 to $0.97-$1.07:
$0.08 impact reflecting weaker foreign currencies particularly Brazilian Real, Argentine
Peso and British Pound
$0.02 impact reflecting unfavorable commodity prices resulting in weaker electricity prices
particularly in Argentina
1.A non-GAAP financial measure. See Appendix for definition and reconciliation.
2.See Appendix for definition.
Note: 2009 Guidance is based on expectations for future foreign exchange rates and commodity prices as of December 31, 2008. Actual results may differ.
9

10. Contains Forward Looking Statements
2009 Guidance Estimated Sensitivities
Interest 100 bps move in interest rates is equal to change in EPS of approximately $0.02
Rates
10% appreciation in USD against the following key currencies1 is equal to following negative
EPS impacts:
Brazilian Real (BRL): approximately $0.03
Colombian Peso (COP): approximately $0.01
Currencies Euro (EUR): approximately $0.01
Argentine Peso (ARS): approximately $0.01
Hungarian Forint (HUF): approximately $0.01
British Pound (GBP): approximately $0.01
$10/ton move in coal2 (negative correlation) is equal to EPS impact of approximately $0.03
$10/barrel move in oil2 (positive correlation) is equal to EPS impact of approximately $0.04-$0.05
Commodity $1/mmbtu move in natural gas2 (positive correlation) is equal to EPS impact of: approximately $0.03
Sensitivity $5/ton move in Certified Emission Reductions (CER)2 (positive correlation) is equal to EPS impact of
approximately $0.01
Note: All sensitivities are provided on a standalone basis, assuming no change in the other factors, and reflect the estimated full-year impact on 2009 Adjusted EPS. Actual results may
differ from the sensitivities provided.
1. 2009 guidance is based on currency forward curves and forecasts as of 12/31/08. Assumptions for the COP, EUR, HUF and GBP are based on forward curves as of 12/31/08. For
reference, the forward curves as of 12/31/08 implied annual average 2009 rates as follows: 2,336 COP/$, 0.72 EUR/$, 196 HUF/$ and 0.69 GBP/$. Assumptions for the BRL and ARS
are based on forecasts as of 12/31/08. For reference, the forecast for the BRL has a starting point (12/31/08) of 2.31/$ and ending point (12/31/09) of 2.34/$ with an annual average
2009 rate of 2.34/$. The forecast for the ARS has a starting point (12/31/08) of 3.45/$ and ending point (12/31/09) of 4.01/$ with an annual average 2009 rate of 3.70/$.
2. 2009 guidance is based on commodity forward curves as of 12/31/08. For reference, the forward curves as of 12/31/08 implied annual average prices as follows: $76/ton Newcastle
coal, $61/ton NYMEX coal, $55/barrel Brent crude oil, $6.11/mmbtu Henry Hub natural gas and €14 CER.
10

11. Contains Forward Looking Statements
3,403 MW Projects Under Construction
Generation (Thermal) Generation (Renewables) Utility
Chile Jordan Chile Bulgaria Chile Chile Chile Chile UK Panama Turkey Bulgaria China France Scotland Cameroon
I.C. Guohua
Santa Amman Guacolda Maritza Nueva Guacolda Kilroot Changuinola St. North
Project Angamos Campiche Energy Energy InnoVent3 Dibamba
Lidia East 3 East Ventanas 4 OCGT I Nikolas Rhins
JV1 JV2
% Owned 71 37 35 100 71 35 71 71 99 83 51 89 49 40 51 56
Heavy Fuel
Type Diesel Gas Coal Coal Coal Coal Coal Coal Diesel Hydro Hydro Wind Wind Wind Wind
Oil
130
Gross MW 380 MW 152 MW 670 MW 270 MW 152 MW 518 MW 270 MW 80 MW 223 MW 62 MW 156 MW 198 MW 34 MW 22 MW 86 MW
MW
Expected
Commercial 2009-
2009 2009 2009 2010 2010 2010 2011 2011 2009 2011 2010 2010 2009 2009 2009
Operations 2010
Date
Significant portion of the capital cost for these projects already secured
under long-term non-recourse financings
More than 90% of capacity is under long-term contacts
Approximately one-third of the total capacity will come online each year
through 2011
1. Joint Venture with I.C. Energy. I.C. Energy plants: Damlapinar Konya, Kepezkaya Konya and Kumkoy Samsun.
2. Joint Venture with Guohua Energy Investment Co. Ltd. Guohua Energy plants: Huanghua I & II, Chenq Qi and Dong Qi.
3. InnoVent plants: Frenouville, Audrieu, Boisbergues, Gapree and Croixrault-Moencourt.
11

12. Contains Forward Looking Statements
Appendix
12

13. Contains Forward Looking Statements
Reconciliation of Fourth Quarter & Full Year
2008 Cash Flow Items
($ Millions)
Fourth Quarter Full Year
2008 2007 2008 2007
Consolidated Operating Cash Flow $579 $482 $2,165 $2,353
EDC1 - - - $151
Consolidated Operating Cash Flow Without EDC2 $579 $482 $2,165 $2,202
Maintenance Capex1 $265 $199 $770 $878
EDC1 - - - $44
Maintenance Capex Without EDC2 $265 $199 $770 $834
Consolidated Free Cash Flow1 $314 $283 $1,395 $1,475
EDC1 - - - $107
Consolidated Free Cash Flow1 Without EDC2 $314 $283 $1,395 $1,368
Maintenance Capex1 $265 $199 $770 $878
Growth Capex1 $607 $505 $2,117 $1,582
Total Capex3 $872 $704 $2,887 $2,460
1. A non-GAAP financial measure as reconciled above. See “Definitions”.
2. Excludes contributions from EDC, a business AES sold in May 2007.
3. Includes capital expenditures under investing and financing activities.
13

14. Contains Forward Looking Statements
Reconciliation of Adjusted Earnings
Per Share1
Fourth Quarter Full Year
2008 2007 2008 2007
Diluted EPS from Continuing Operations ($0.10) - $1.80 $0.72
FAS 133 Mark to Market (Gains)/Losses 0.13 0.02 0.05 0.03
Currency Transaction (Gains)/Losses 0.03 - 0.03 -
Net Asset (Gains)/Losses and Impairments 0.12 0.09 (1.14) 0.18
Debt Retirement (Gains)/Losses - 0.08 0.25 0.08
Adjusted Earnings per Share1 $0.18 $0.19 $0.99 $1.01
1. A non-GAAP financial measure as reconciled above. See “Definitions”.
14

15. Contains Forward Looking Statements
Reconciliation of Adjusted Earnings
Per Share1
Prior Definition (Effective Through 12/31/08) 2008 2007 2006 2005
Diluted EPS from Continuing Operations $1.80 $0.72 $0.25 $0.53
FAS 133 Mark to Market (Gains)/Losses 0.05 0.03 (0.05) 0.05
Currency Transaction (Gains)/Losses 0.03 - 0.01 0.03
Net Asset (Gains)/Losses and Impairments (1.14) 0.18 0.68 -
Debt Retirement (Gains)/Losses 0.25 0.08 0.03 -
Adjusted Earnings per Share1 $0.99 $1.01 $0.92 $0.61
New Definition (Effective as of 1/1/09) 2008 2007 2006 2005
Diluted EPS from Continuing Operations $1.80 $0.72 $0.25 $0.53
FAS 133 Mark to Market (Gains)/Losses 0.05 0.03 (0.05) 0.05
Currency Transaction (Gains)/Losses 0.16 (0.03) 0.02 0.02
Disposition/Acquisition (Gains)/Losses (1.27) (0.18) (0.15) -
Impairment Losses 0.13 0.36 0.83 -
Debt Retirement (Gains)/Losses 0.25 0.08 0.04 -
Adjusted Earnings per Share1 $1.12 $0.98 $0.94 $0.60
1. A Non-GAAP financial measure as reconciled above. See “Definitions”.
15

16. Contains Forward Looking Statements
Parent Sources and Uses of Liquidity
($ Millions)
Fourth Quarter Full Year
2008 2007 2008 2007
Sources
Total Subsidiary Distributions1 386 343 1,060 1,099
(1) 214 1,086 1,003
Proceeds from Asset Sales, Net
- 1,974 616 1,974
Refinancing Proceeds, Net
- - - -
Increased Credit Facility Commitments
2 21 18 51
Issuance of Common Stock, Net
45 21 150 106
Total Returns of Capital Distributions and Project Financing Proceeds
Beginning Parent Company Liquidity2 1,145 1,515 2,153 1,146
1,577 4,088 5,083 5,379
Total Sources
Uses
- (1,314) (1,037) (1,314)
Repayments of Debt
- - (143) -
Repurchase of Equity
(219) (268) (1,909) (1,120)
Investments in Subsidiaries, Net
(74) (68) (414) (323)
Cash for Development, Selling, General and Administrative and Taxes
(168) (128) (486) (425)
Cash Payments for Interest
274 (157) 296 (44)
Changes in Letters of Credit and Other, Net
Ending Parent Company Liquidity2 (1,390) (2,153) (1,390) (2,153)
(1,577) (4,088) (5,083) (5,379)
Total Uses
1. See “Definitions”.
2. A non-GAAP financial measure. See “Definitions”.
16

17. Contains Forward Looking Statements
Fourth Quarter/Full Year 2008
Subsidiary Distributions1
($ Millions)
Fourth Quarter / Full Year 2008 Subsidiary Distributions1
North Latin Europe
Other2
Asia Total
America America & Africa
Utilities 31 / 124 57 / 61 2/3 -/- 90 / 188
Generation 62 / 310 29 / 158 137 / 251 47 / 75 275 / 794
Other 21 / 78 21 / 78
Total 93 / 434 86 / 219 139 / 254 47 / 75 21 / 78 386 / 1,060
Top 10 Subsidiary Distributions1
Fourth Quarter 2008 Full Year 2008
Business Amount Business Amount Business Amount Business Amount
Pak Gen, Eastern Energy, Cartagena,
Kilroot, UK 80 16 153 51
Pakistan USA Spain
Lal Pir, Brasiliana,
Ebute, Nigeria 45 15 IPALCO, USA 124 47
Pakistan Brazil
CAESS/EEO,
Brasiliana, Brazil 42 13 Kilroot, UK 105 Panama 46
El Salvador
Southland,
IPALCO, USA 31 12 Andres, DR 61 Gener, Chile 45
USA
Global Shady Point,
Andres, DR 19 12 Ebute, Nigeria 52 38
Insurance USA
1. See “Definitions”.
2. Other includes wind and other alternative energy projects.
17

18. Contains Forward Looking Statements
Reconciliation of Subsidiary Distributions
and Parent Liquidity
($ Millions)
Quarter Ended
Dec. 31, Sept. 30, June 30, Mar. 31,
2008 2008 2008 2008
Total Subsidiary Distributions1 to Parent & QHCs2 386 184 269 221
Total Return of Capital Distributions to Parent & QHCs2 45 24 81 1
Total Subsidiary Distributions &
431 208 350 222
Returns of Capital to Parent
Balance as of
Dec. 31, Sept. 30, June 30, Mar. 31,
Liquidity3
Parent Company 2008 2008 2008 2008
Cash at Parent & QHCs2 247 455 695 737
Availability Under Revolver 1,143 690 815 786
Ending Liquidity 1,390 1,145 1,510 1,523
1. See “Definitions”.
2. Qualified Holding Company. See “Assumptions”.
3. A Non-GAAP financial measure. See “Definitions”.
18

19. Contains Forward Looking Statements
Reconciliation of 2009 Guidance
($ in Millions), Except Earnings Per Share
2009
Adjustment Factors1 Proportional1,2
Consolidated
Net Operating Cash Flow $2,100-$2,300 $900-$950 $1,200-$1,350
Free Cash Flow2 $1,400-$1,600 $750 $650-$850
Gross Margin $3,200-$3,400 $1,150-$1,250 $2,050-$2,150
Subsidiary Distributions3 $1,100-$1,300
Diluted Earnings Per Share $0.87-$0.97
Proforma Adjustments $0.10
Adjusted Earnings Per Share2 $0.97-$1.07
1. Economic share of third parties.
2. A non-GAAP financial measure. See “Definitions.”
3. See “Definitions.”
Note: 2009 Guidance is based on expectations for future foreign exchange rates and commodity prices as of December 31, 2008. Actual results may differ.
19

20. 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 continue to operate in a manner consistent with or better than
prior operating performance, including achievement of planned productivity improvements including
benefits of global sourcing, and in accordance with the provisions of their relevant contracts or
concessions; (c) new business opportunities are available to AES in sufficient quantity to achieve its
growth objectives; (d) no material disruptions or discontinuities occur in GDP, foreign exchange rates,
inflation or interest rates during the forecast period; and (e) material business-specific risks as described
in the Company’s SEC filings do not occur individually or cumulatively. In addition, benefits from global
sourcing include avoided costs, reduction in capital project costs versus budgetary estimates, and
projected savings based on assumed spend volume which may or may not actually be achieved. Also,
improvement in certain KPIs such as equivalent forced outage rate and commercial availability may not
improve financial performance at all facilities based on commercial terms and conditions. These benefits
will not be fully reflected in the Company’s consolidated financial results.
The cash held at qualifying holding companies (QHCs) represents cash sent to subsidiaries of the
Company domiciled outside of the U.S. Such subsidiaries had no contractual restrictions on their ability
to send cash to AES, the Parent Company. Cash at those subsidiaries was used for investment and
related activities outside of the U.S. These investments included equity investments and loans to other
foreign subsidiaries as well as development and general costs and expenses incurred outside the U.S.
Since the cash held by these QHCs is available to the Parent, AES uses the combined measure of
subsidiary distributions to Parent and QHCs as a useful measure of cash available to the Parent to meet
its international liquidity needs. AES believes that unconsolidated parent company liquidity is important
to the liquidity position of AES as a parent company because of the non-recourse nature of most of
AES’s indebtedness.
20

21. Contains Forward Looking Statements
Definitions
Non-GAAP Financial Measures
Adjusted earnings per share (a non-GAAP financial measure) is defined as diluted earnings per share from continuing operations excluding gains or losses
associated with (a) mark-to-market amounts related to FAS 133 derivative transactions, (b) foreign currency transaction impacts on the net monetary
position related to Brazil and Argentina, (c) significant asset gains or losses due to disposition transactions and impairments, and (d) costs related to early
retirement of debt. AES believes that adjusted earnings per share better reflects the underlying business performance of the Company, and is considered
in the Company’s internal evaluation of financial performance. Factors in this determination include the variability associated with mark-to-market gains or
losses related to certain derivative transactions, currency gains and losses, periodic strategic decisions to dispose of certain assets which may influence
results in a given period, and the early retirement of debt. Please see the attached table for historical results and comparison against the revised definition.
Effective January 1, 2009, in addition to clarifying certain elements of the current definition, the Company has revised its adjusted earnings per share
definition to include only unrealized foreign currency transaction gains or losses from all countries. Following is the updated definition. Adjusted earnings
per share (a non-GAAP financial measure) is defined as diluted earnings per share from continuing operations excluding gains or losses of the
consolidated entity due to (a) mark-to-market amounts related to FAS 133 derivative transactions, (b) unrealized foreign currency gains or losses, (c)
significant gains or losses due to dispositions and acquisitions of business interests, (d) significant losses due to impairments, and (e) costs due to the
early retirement of debt. AES believes that adjusted earnings per share better reflects the underlying business performance of the Company, and is
considered in the Company's internal evaluation of financial performance. Factors in this determination include the variability due to mark-to-market gains
or losses related to derivative transactions, currency gains or losses, losses due to impairments and strategic decisions to dispose or acquire business
interests or retired debt which affect results in a given period or periods.
Free cash flow (a non-GAAP financial measure) is defined as net cash from operating activities less maintenance capital expenditures (including
environmental capital expenditures). AES believes that free cash flow is a useful measure for evaluating our financial condition because it represents the
amount of cash provided by operations less maintenance capital expenditures as defined by our businesses, that may be available for investing or for
repaying debt
Parent Company Liquidity (a non-GAAP financial measure) is defined as cash at the Parent Company plus availability under corporate revolver plus cash
at qualifying holding companies (QHCs). AES believes that unconsolidated Parent Company liquidity is important to the liquidity position of AES
as a Parent Company because of the non-recourse nature of most of AES’s indebtedness
The AES Corporation (the “Company”) is a holding company that derives its income and cash flows from the activities of its subsidiaries, some of which
may not be wholly-owned by the Company. Accordingly, the Company has presented certain financial metrics which are defined as Proportional (a non-
GAAP financial measure).
Proportional metrics present the Company’s estimate of its share in the economics of the underlying metric. The Company believes that the Proportional
metrics are useful to investors because they exclude the economic share in the metric presented that is held by non-AES shareholders. For example,
Operating Cash Flow is a GAAP metric which presents the Company’s cash flow from operations on a consolidated basis, including operating cash flow
allocable to noncontrolling interests. Proportional Operating Cash Flow removes the share of operating cash flow allocable to noncontrolling interests and
therefore may act as an aid in the valuation the Company. Proportional measures are considered in the Company’s internal evaluation of financial
performance.
Proportional metrics are reconciled to the nearest GAAP measure. Certain assumptions have been made to estimate our proportional financial measures.
These assumptions include: (i) the Company’s economic interest has been calculated based on a blended rate for each consolidated business when such
business represents multiple legal entities; (ii) the Company’s economic interest may differ from the percentage implied by the recorded net income or loss
attributable to noncontrolling interests or dividends paid during a given period; (iii) the Company’s economic interest for entities accounted for using the
hypothetical liquidation at book value method is 100%; (iv) individual operating performance of the Company’s equity method investments is not reflected
and (v) all intercompany amounts have been excluded as applicable.
21

22. Contains Forward Looking Statements
Definitions, Cont’d.
Subsidiary Distributions
Subsidiary Distributions should not be construed as an alternative to Net Cash Provided by Operating Activities which are determined in accordance with
GAAP. Subsidiary Distributions are important to the Parent Company because the Parent Company is a holding company that does not derive any significant
direct revenues from its own activities but instead relies on its subsidiaries’ business activities and the resultant distributions to fund the debt service,
investment and other cash needs of the holding company. The reconciliation of difference between the Subsidiary Distributions and Net Cash Provided by
Operating Activities consists of cash generated from operating activities that is retained at the subsidiaries for a variety of reasons which are both discretionary
and non-discretionary in nature. These factors include, but are not limited to, retention of cash to fund capital expenditures at the subsidiary, cash retention
associated with non-recourse debt covenant restrictions and related debt service requirements at the subsidiaries, retention of cash related to sufficiency of
local GAAP statutory retained earnings at the subsidiaries, retention of cash for working capital needs at the subsidiaries, and other similar timing differences
between when the cash is generated at the subsidiaries and when it reaches the Parent Company and related holding companies
22