Third Quarter Adjusted Earnings Per Share increased $0.08 to $0.36, driven by contributions from new businesses, cost cutting and a lower share count, partially offset by unfavorable foreign currency exchange rates

Third Quarter Diluted Earnings Per Share from Continuing Operations decreased $2.01 to ($2.10), primarily due to a $2.46 per share goodwill impairment loss at DPL in the United States, partially offset by higher operating earnings

Year-To-Date 2012 Adjusted Earnings Per Share up 12% over Year-To-Date 2011

Increased cost savings target by $45 million to $145 million when compared to 2011

Board authorized $225 million of Parent debt pre-payment

Repurchased $49 million of stock since the Second Quarter earnings call, for a total investment of $390 million since September 2011

Completed the sale of its interests in wind and coal assets in China for proceeds of approximately $86 million

Reaffirmed full year 2012 guidance ranges for all metrics

Since August 2012, the Company repurchased 4.3 million shares for a total investment of $49 million. Since September 2011, the Company repurchased 34 million shares for $390 million, at an average price of $11.55 per share. Total shares outstanding as of September 30, 2012 is 744 million.

In late 2011, the Company announced a cost cutting target of $100 million by 2014. This year, the Company is ahead of this original goal and now expects to achieve $65 million, net of one-time restructuring expenses in 2012, and expects to reach the full $100 million of savings in 2013. The recently announced reorganization will result in an additional $45 million in sustainable cost savings by 2014, totaling $145 million less in overhead costs than in 2011.

During the quarter, the Company completed the sale of its interests in the 2,100 MW coal-fired Yangcheng plant in China and its 49 percent equity interest in the 248 MW China Wind joint venture for a total of $86 million. The Company expects to close the sale of the remaining 379 MW hydro capacity for $49 million before the end of 2012.

During the quarter, the Company completed construction of two wind and solar projects, totaling 52 MW.

The quarterly cash dividend of $0.04 per share is payable on November 15, 2012 to common shareholders of record as of October 30, 2012, with an ex-dividend date of October 26, 2012. On an annual basis the total dividend payment will be approximately $120 million, or $0.16 per share.

The Company reaffirmed its full year 2012 Adjusted EPS guidance range of $1.22-$1.30, which is based on foreign exchange and commodity price assumptions as of September 30, 2012, and includes all announced and closed asset sales. As previously disclosed in August 2012, the Company expects its Adjusted EPS to come in at the low end of the guidance range.

The Company reaffirmed its Proportional Free Cash Flow guidance range of $1,050-$1,250 million. As previously disclosed in May 2012, the Company expects Proportional Free Cash Flow to come in at the low end of the guidance range. The Company reaffirmed its Subsidiary Distributions guidance range of $1,325-$1,525 million. As previously disclosed in August 2012, the Company expects Subsidiary Distributions to come in at the low end of the range. In providing its full year 2012 Adjusted EPS guidance, the Company notes that there could be differences between expected reported earnings and estimated operating earnings for matters such as, but not limited to: (a) unrealized gains or losses related to derivative transactions; (b) unrealized foreign currency gains or losses; (c) gains or losses due to dispositions and acquisitions of business interests; (d) losses due to impairments; and (e) costs due to the early retirement of debt. At this time, management is not able to estimate the aggregate impact, if any, of these items on reported earnings. Accordingly, the Company is not able to provide a corresponding GAAP equivalent for its Adjusted EPS guidance.

Consolidated Revenue

Consolidated Gross Margin

Proportional Gross Margin¹ 

Consolidated Cash Flow from Operating Activities

Proportional Cash Flow from Operating Activities¹ 

Consolidated Free Cash Flow¹ 

Proportional Free Cash Flow¹ 

Subsidiary Distributions to the Parent Company² 

Diluted EPS from Continuing Operations

Adjusted EPS¹ 

A non-GAAP financial measure. See “Non-GAAP Financial Measures” for definitions and reconciliations to the most comparable GAAP financial measures.

See definitions.

Consolidated Revenue increased by $280 million to $4.6 billion, due to: (i) the contributions of the Company’s new businesses, primarily DPL; and (ii) recovery of pass through costs of energy at Eletropaulo in Brazil. These increases were partially offset by the unfavorable impact of foreign currency.

Consolidated Gross Margin decreased by $6 million to $1.0 billion, due to: (i) the unfavorable impact of foreign currency; (ii) lower tariffs at Eletropaulo as a result of the worse than expected outcome related to the 2011 tariff reset passed by the Brazilian regulator in July of 2012; and (iii) an increase in fixed costs in Latin America. These declines were mostly offset by: (i) the contribution of the Company’s new businesses, as discussed above; and (ii) the favorable impact of unrealized mark-to-market derivative adjustments at Sonel in Cameroon.

Proportional Gross Margin (a non-GAAP financial measure, see Appendix for definition and reconciliation) increased by $168 million to $738 million, due to the contribution of the Company’s new businesses, partially offset by lower tariffs and higher fixed costs at Eletropaulo.

Consolidated Cash Flow from Operating Activities decreased by $121 million to $1.0 billion driven by a decrease at its utility businesses in Latin America. This decline was partially offset by: (i) an increase due to the acquisition of DP&L in the United States, which closed in November 2011; and (ii) an increase at the Company’s generation businesses in Latin America.

Proportional Cash Flow from Operating Activities (a non-GAAP financial measure, see Appendix for definition and reconciliation) increased by $31 million to $656 million, due to: (i) an increase due to the acquisition of DP&L; and (ii) an increase at the Company’s generation businesses in Latin America. These increases were partially offset by a decrease at its utility businesses in Latin America.

Consolidated Free Cash Flow (a non-GAAP financial measure, see Appendix for definition and reconciliation) decreased by $110 million to $785 million due to the same factors driving Consolidated Cash Flow from Operating Activities.

Proportional Free Cash Flow (a non-GAAP financial measure, see Appendix for definition and reconciliation) increased by $41 million to $501 million due to the same factors driving Proportional Cash Flow from Operating Activities.

Diluted EPS from Continuing Operations decreased by $2.01 per share to a loss of $2.10 per share due primarily to goodwill impairment expense at DPL in the United States of $1,850 million or $2.46 per share. This decline was partially offset by: (i) the contribution of the Company’s new businesses, as discussed above; (ii) lower foreign currency transaction losses compared to the third quarter of 2011; and (iii) lower SG&A expenses.

Adjusted EPS (a non-GAAP financial measure, see Appendix for definition and reconciliation) increased by $0.08 to $0.36 per share due to: (i) the contribution of the Company’s new businesses, as discussed above; (ii) lower SG&A expenses; and (iii) a lower share count. These gains were partially offset by unfavorable foreign currency. Table 2 provides a reconciliation of Diluted EPS to Adjusted EPS for the third quarter of 2012 as compared to the third quarter of 2011.

Diluted Earnings Per Share from Continuing Operations

Unrealized derivative losses

Unrealized foreign currency transaction (gains)/losses

Disposition/Acquisition (gains)

Impairment losses

Debt retirement losses

Adjusted Earnings Per Share

Consolidated Revenue increased by $621 million to $13.5 billion, due to: (i) the contributions of the Company’s new businesses in the United States, Bulgaria and Latin America; (ii) higher volume at its generation businesses in Latin America and Asia; and (iii) higher prices at its utility businesses in El Salvador and at Sul in Brazil. These increases were partially offset by: (i) the unfavorable impact of

foreign currency; (ii) lower prices due to the unfavorable 2011 tariff reset at Eletropaulo that was passed by the Brazilian regulator in July 2012; and (iii) the unfavorable impact of the deconsolidation of Cartagena, in Spain, as a result of the sale of 80% of its ownership in February 2012.

Consolidated Gross Margin decreased by $221 million to $2.8 billion, due to: (i) the unfavorable impact of foreign currency; and (ii) lower prices due to the unfavorable tariff reset at Eletropaulo described above. These declines were partially offset by the contributions of new businesses, as discussed above.

Proportional Gross Margin (a non-GAAP financial measure, see Appendix for definition and reconciliation) increased by $284 million to $2.1 billion due to: (i) the contributions of new businesses in the United States, Bulgaria and Latin America; and (ii) the favorable impact of a non-recurring arbitration settlement during the first quarter of 2012 at Cartagena in Spain. These gains were partially offset by: (i) lower prices and the impact of the July 2011 tariff reset at Eletropaulo, as discussed above; and (ii) lower energy exports from TermoAndes in Argentina to Chile and higher contract levels at lower energy prices at AES Gener in Chile.

Consolidated Cash Flow from Operating Activities decreased by $184 million to $2.1 billion, driven by a decrease at its utility businesses in Latin America. This decrease was partially offset by: (i) an increase at its utility businesses in North America, due to the acquisition of DP&L in November 2011; and (ii) an increase at its generation businesses in Latin America and Asia.

Proportional Cash Flow from Operating Activities (a non-GAAP financial measure, see Appendix for definition and reconciliation) increased by $206 million to $1.4 billion due to: (i) an increase at its utility businesses in North America, due to DP&L, which was acquired in November 2011; and (ii) an increase at its generation businesses in Latin America and Asia. This was partially offset by a decrease at its utility businesses in Latin America.

Consolidated Free Cash Flow (a non-GAAP financial measure, see Appendix for definition and reconciliation) decreased by $192 million to $1.4 billion due to the same factors driving Consolidated Cash Flow from Operating Activities.

Proportional Free Cash Flow (a non-GAAP financial measure, see Appendix for definition and reconciliation) increased by $185 million to $949 million due to the same factors driving Proportional Cash Flow from Operating Activities.

Diluted EPS from Continuing Operations decreased by $1.98 to a loss of $1.52 per share due primarily to: (i) goodwill impairment expense at DPL in the United States; (ii) higher foreign currency transaction losses; and (iii) a higher effective tax rate. This decline was partially offset by: (i) the contribution of the Company’s new businesses, as discussed above; (ii) the favorable impact of a non-recurring arbitration settlement during the first quarter of 2012 at Cartagena in Spain; (iii) gains on the disposition of assets; and (iv) lower SG&A expenses.

Adjusted EPS (a non-GAAP financial measure, see Appendix for definition and reconciliation) increased by $0.10 to $0.91 per share, due to: (i) the contribution of the Company’s new businesses, as discussed above; (ii) the favorable impact of a non-recurring arbitration settlement during the first quarter of 2012 at Cartagena in Spain; (iii) lower SG&A expenses; and (iv) a lower share count.

These increases were partially offset by: (i) unfavorable foreign currency; and (ii) a higher effective tax rate. Table 3 provides a reconciliation of Diluted EPS to Adjusted EPS for Year-to-Date 2012 as compared to Year-to-Date 2011.

Diluted Earnings Per Share from Continuing Operations

Unrealized derivative losses

Unrealized foreign currency transaction (gains)/losses

Disposition/Acquisition (gains)

Impairment losses

Debt retirement losses

Adjusted Earnings Per Share

Revenue:

Regulated

Non-Regulated

Total revenue

Cost of Sales:

Regulated

Non-Regulated

Total cost of sales

Gross margin

General and administrative expenses

Interest expense

Interest income

Other expense

Other income

Gain on sale of investments

Goodwill impairment

Asset impairment expense

Foreign currency transaction losses

Other non-operating expense

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES AND EQUITY IN EARNINGS OF AFFILIATES

Income tax expense

Net equity in earnings of affiliates

INCOME (LOSS) FROM CONTINUING OPERATIONS

Income (loss) from operations of discontinued businesses, net of income tax (benefit) expense of $(2), $(16), $3, and $(22), respectively

Net gain (loss) from disposal and impairments of discontinued businesses, net of income tax (benefit) expense of $(1), $0, $60, and $0, respectively

NET INCOME (LOSS)

Noncontrolling interests:

Less: Income from continuing operations attributable to noncontrolling interests

Less: Income from discontinued operations attributable to noncontrolling interests

Total net income attributable to noncontrolling interests

NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION

AMOUNTS ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS:

Income (loss) from continuing operations, net of tax

Income (loss) from discontinued operations, net of tax

Net income (loss)

BASIC EARNINGS PER SHARE:

Income (loss) from continuing operations attributable to The AES Corporation common stockholders, net of tax

Income (loss) from discontinued operations attributable to The AES Corporation common stockholders, net of tax

NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS

DILUTED EARNINGS PER SHARE:

Income (loss) from continuing operations attributable to The AES Corporation common stockholders, net of tax

Income (loss) from discontinued operations attributable to The AES Corporation common stockholders, net of tax

NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS

DIVIDENDS DECLARED PER COMMON SHARE:

(in millions, except share

and per share data)

ASSETS

CURRENT ASSETS

Cash and cash equivalents

Restricted cash

Short-term investments

Accounts receivable, net of allowance for doubtful accounts of $307 and $273, respectively

Inventory

Deferred income taxes

Prepaid expenses

Other current assets

Current assets of discontinued operations and held for sale assets

Total current assets

NONCURRENT ASSETS

Property, Plant and Equipment:

Land

Electric generation, distribution assets and other

Accumulated depreciation

Construction in progress

Property, plant and equipment, net

Other Assets:

Investments in and advances to affiliates

Debt service reserves and other deposits

Goodwill

Other intangible assets, net of accumulated amortization of $250 and $164, respectively

Deferred income taxes

Other

Noncurrent assets of discontinued operations and held for sale assets

Total other assets

TOTAL ASSETS

LIABILITIES AND EQUITY

CURRENT LIABILITIES

Accounts payable

Accrued interest

Accrued and other liabilities

Non-recourse debt, including $294 and $259, respectively, related to variable interest entities

Recourse debt

Current liabilities of discontinued operations and held for sale businesses

Total current liabilities

NONCURRENT LIABILITIES

Non-recourse debt, including $1,173 and $1,156, respectively, related to variable interest entities

Recourse debt

Deferred income taxes

Pension and other post-retirement liabilities

Other noncurrent liabilities

Noncurrent liabilities of discontinued and held for sale businesses

Total noncurrent liabilities

Contingencies and Commitments (see Note 8)

Cumulative preferred stock of subsidiaries

EQUITY

THE AES CORPORATION STOCKHOLDERS’ EQUITY

Common stock ($0.01 par value, 1,200,000,000 shares authorized; 810,312,922 issued and 743,875,691 outstanding at September 30, 2012 and 807,573,277 issued and 765,186,316 outstanding at December 31, 2011

Additional paid-in capital

Retained earnings (Accumulated deficit)

Accumulated other comprehensive loss

Treasury stock, at cost (66,437,231 shares at September 30, 2012 and 42,386,961 shares at December 31, 2011, respectively)

Total AES Corporation stockholders’ equity

NONCONTROLLING INTERESTS

Total equity

TOTAL LIABILITIES AND EQUITY

December 31, 2011 balances revised to reflect updated DPL purchase accounting allocation. For further information see our Form 10-Q for the quarter ended September 30, 2012 filed with the SEC.

REVENUE

Generation – Latin America⁽¹⁾

Generation – North America

Generation – Europe

Generation – Asia

Utilities – Latin America

Utilities – North America

Corporate and Other⁽²⁾

Intersegment Eliminations^{(3) (4)}

Total Revenue

GROSS MARGIN

Generation – Latin America ⁽¹⁾

Generation – North America

Generation – Europe

Generation – Asia

Utilities – Latin America

Utilities – North America

Corporate and Other ⁽²⁾

Intersegment Eliminations⁽⁴⁾

Total Gross Margin

Includes Generation – Latin America – Other and Generation – Tiete.

Corporate and Other includes the Company’s Europe Utilities, Africa Utilities, Africa Generation and Wind Generation operating segments and other renewable projects.

Represents inter-segment eliminations of revenue primarily related to transfers of electricity from Tiete (Generation – Latin America) to Eletropaulo (Utilities – Latin America).

Intersegment eliminations represent eliminations of revenue and gross margin among segments.

OPERATING ACTIVITIES:

Net income (loss)

Adjustments to net income (loss):

Depreciation and amortization

(Gain) loss from sale of investments and impairment expense

Deferred income taxes

Contingencies

(Gain) loss on the extinguishment of debt

(Gain) loss on disposal and impairment write-down – discontinued operations

Other

Changes in operating assets and liabilities:

(Increase) decrease in accounts receivable

(Increase) decrease in inventory

(Increase) decrease in prepaid expenses and other current assets

(Increase) decrease in other assets

Increase (decrease) in accounts payable and other current liabilities

Increase (decrease) in income tax payables, net

Increase (decrease) in other liabilities

Net cash provided by operating activities

INVESTING ACTIVITIES:

Capital expenditures

Acquisitions - net of cash acquired

Proceeds from the sale of businesses, net of cash sold

Proceeds from the sale of assets

Sale of short-term investments

Purchase of short-term investments

(Increase) decrease in restricted cash

(Increase) decrease in debt service reserves and other assets

Affiliate advances and equity investments

Proceeds from performance bond

Proceeds from government grants for asset construction

Other investing

Net cash used in investing activities

FINANCING ACTIVITIES:

(Repayments) borrowings under the revolving credit facilities, net

Issuance of recourse debt

Issuance of non-recourse debt

Repayments of recourse debt

Repayments of non-recourse debt

Payments for financing fees

Distributions to noncontrolling interests

Contributions from noncontrolling interests

Financed capital expenditures

Purchase of treasury stock

Other financing

Net cash (used in) provided by financing activities

Effect of exchange rate changes on cash

(Increase) decrease in cash of discontinued and held for sale businesses

Total increase (decrease) in cash and cash equivalents