The AES Corporation Public Lenders Presentation May 17, 2011 Proprietary and Confidential Information
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 financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES ’ 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 Slide 40 and 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 ’ filings with the Securities and Exchange Commission including but not limited to the risks discussed under Item 1A “ Risk Factors ” in the AES’ 2010 Annual Report on Form 10- K and the Form 10-Q for the quarter ended March 31, 2011, 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
Contains Forward Looking Statements Agenda AES Victoria Harker Overview Executive Vice President & Chief Financial Officer Ned Hall DPL Inc. Acquisition Executive Vice President & President of North Overview America and Global Wind Generation Financial Chip Hoagland Overview Vice President and Treasurer Henrik Dahlback Syndication Overview Director, Bank of America Merrill Lynch 3
Contains Forward Looking Statements AES Overview 4
Contains Forward Looking Statements Transaction Summary 1 On April 19, 2011, The AES Corporation (“AES” or the “Company”) entered into a definitive agreement under which AES will acquire DPL Inc. (“DPL”) for $30.00 per share in cash Transaction valued at $4.7 billion on an enterprise basis (the “Acquisition”) 2 The proposed Acquisition will provide AES with an attractive regional utility that has a diversified retail customer base and well-positioned generation fleet with strong U.S. cash flows The combined company in 2010 had total capacity of approximately 44,000 megawatts, 12 million utility customers and generated approximately $18.5 billion of revenue The Company is seeking commitments on a $1,050 million Senior Secured Term Loan Facility (the “Term Loan”) offered hereby as a source of permanent financing for the acquisition Subject to market conditions and other factors, the Company also expects to issue $1,000 million of Senior Unsecured Notes (the “Notes”) to complete its permanent financing package 1. There are risks associated with the transaction. See risk factors in AES’ Form 10 -Q for the period ended March 31, 2011. 2. There are a number of conditions precedent and termination rights under the Merger Agreement. A description is contained in AES ’ Form 10 -Q for the period ended March 31, 2011. 5
Contains Forward Looking Statements AES Offers Compelling Value Proposition Well Positioned Attractive Growth Diverse to Benefit from in Near-Term Earnings Operating Portfolio and Free Cash Flow Global Trends Includes mix of regulated Largely contracted and fully Strong liquidity position Utilities and unregulated financed construction allows flexibility Generation businesses program Pursuing balanced Benefits from exposure to Exposure to high growth approach to capital markets experiencing faster markets allocation recovery in demand growth Attractive M&A opportunities Demonstrated track record Ability to capitalize on of investing cash at Cost reduction initiatives platform of multiple attractive returns geography and energy Mature development sources pipeline/M&A opportunities 6
Contains Forward Looking Statements Businesses Utilize Multiple Fuel Types & Technologies Current Portfolio by Fuel Type (MW 1 ) 38% Natural Gas Coal 33% Renewables 2 24% Oil 2% Diesel & Petcoke 3% 62% of Our Capacity is in Natural Gas & Renewables 1. 40,498 MW (gross) in operation under Generation and Utilities businesses. 2. Renewables include biomass, hydro, solar and wind. 7
Contains Forward Looking Statements Diverse Geographic Portfolio Reduces Risk 2010 Distributions from Subsidiaries 2010 Consolidated Gross Margin ($3.9 Billion: 33% Utilities – 67% Generation) ($1.2 Billion: 29% Utilities – 71% Generation) Other Asia Latin America Generation Other Latin America Generation Generation Europe 12% Generation 20% Asia Generation 8% North America Utilities Europe North America 17% Generation 17% Generation Latin America Utilities 11% 15% North America North America Utilities Generation Latin America Utilities 8
Contains Forward Looking Statements Benefit from Higher Global Electricity Demand Growth Electricity Demand Across Regions 1 North Latin America Asia America Source: Economist Intelligence Unit. 1. In Vietnam, AES has a 1,200 MW coal-fired project in development. 9
Contains Forward Looking Statements Construction Program Contributes Near-Term Growth; Funding Already In Place 2,060 MW On-Line by Year 1 2,060 MW On-Line by Geography 1 1. As of May 6, 2011. The MW totals represent some of AES’ construction projects. The above information and timing are estimates and actual results may differ. See “Risk Factors” in the AES’ Form 10 -K for the year ended December 31, 2010 for a discussion of risks associated with development. 10
Contains Forward Looking Statements Update on Construction Program 1 2,010 MW 2 under construction 1,711 MW 3 expected to come on-line during balance of 2011 Maritza East (670 MW, coal, Bulgaria) 4 Commissioning underway with plans to obtain full design capacity by year-end Recently completed successful capacity testing at 420 MW Angamos (518 MW, coal, Chile) Unit 1 was fully commissioned ahead of schedule Unit 2 is expected on-line 2H 2011 as scheduled Changuinola (223 MW, hydro, Panama) Dam and powerhouse are approximately 95% complete Project is expected on-line 2H 2011 AES Wind Generation (274 MW in China, France, India and the U.S.) Post 2011 Drone Hill (28.6 MW, wind, United Kingdom) Reached financial close and construction began during Q1 2011 and is expected on-line 2H 2012 Campiche (270 MW, coal, Chile) Construction is progressing and expected on-line 1H 2013 See “Risk Factors” in the AES’ Form 10 -K for the year ended December 31, 2010 for a discussion of risks associated with development. As a result of these risks, there can be no 1. assurance that AES will be able to complete these projects on schedule. The examples above are some of AES’ construction projects. Other projects not currently on the table, whether developed through acquisitions or otherwise, may be brought on-line before these projects. Some of these projects may not be completed or may be delayed due to uncertainty inherent in the development process. 2. Includes: 670 MW Maritza, 518 MW Angamos, 270 MW Campiche, 223 MW Changuinola, 97.6 MW Laurel Mountain, 49.5 MW Chen Qi, 49 MW Mountain View IV, 39.2 MW InnoVent, 39 MW Saurashtra, 28.6 MW Drone Hill and 26 MW AES Solar. 3. Includes: 670 MW Maritza, 518 MW Angamos, 223 MW Changuinola, and 300 MW of wind and solar. See Item 1A “ Risk Factors ” in the AES’ 2010 Annual Report on Form 10 -K and the Form 10-Q for the quarter ended Match 31, 2011, as well as other AES’ SEC filings for further 4. discussion of the Maritza project. 11
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