Announced the Company’s dividend policy

Commenced senior notes offering and tender offers to reduce recourse debt and improve the AES parent credit profile by extending near-term maturities

Sold the Company’s remaining interest in Cartagena in Spain and closed the sale of two Ukraine utilities for total equity proceeds to AES of approximately $133 million; exited operations in two countries

Commenced construction of the 532 MW Cochrane coal-fired facility in Chile

Achieved commercial operations at the 270 MW Ventanas IV coal-fired plant in Chile

Reaffirmed 2012-2015 total return target of 6% to 8%

$ in Millions, Except Per Share Amounts

Adjusted EPS¹

Diluted EPS from Continuing Operations

Proportional Free Cash Flow¹

Consolidated Net Cash Provided by Operating Activities

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

The Company announced its dividend policy, which will target a payout ratio of 30% to 40% of sustainable Parent Free Cash Flow (a non-GAAP financial measure)

The dividend policy and potential increases will be reviewed annually by management and the Board of Directors

The current annual dividend of $0.16 per share, or $120 million, represents a payout ratio of approximately 23% of 2012 Parent Free Cash Flow and 27% of 2013 Parent Free Cash Flow

The Company reduced G&A costs by $26 million during first quarter 2013

On track to achieve $145 million in annual cost reductions in 2014

In April 2013, the Company commenced transactions to reduce recourse debt by up to $300 million, including a senior notes offering of $500 million priced at 4.875% and tender offers totaling up to $800 million expected to close in May 2013

After completion of these transactions, the Company’s cumulative investment since late 2011 in recourse and non-recourse debt repayments will be approximately $1 billion

In April 2013, the Company closed the sale of its remaining interest in Cartagena in Spain for $24 million and the sale of its Ukraine utilities for $109 million, net of transaction fees

Since late 2011, the Company has received equity proceeds of $1.1 billion from asset sales and exited operations in six countries

In March 2013, the Company achieved commercial operations of the 270 MW coal-fired Ventanas IV plant in Chile

In April 2013, the Company commenced construction on Cochrane, a 532 MW coal-fired expansion of the existing Angamos plant in Chile

Closed non-recourse project financing of approximately $1 billion and executed long-term power sales agreements

On schedule to complete 2,443 MW of capacity under construction expected to come on-line through 2016

$ in Millions, Except Per Share Amounts

Adjusted EPS¹

Proportional Free Cash Flow¹ (a)

Reconciling Factor² (b)

Consolidated Net Cash Provided by Operating Activities (a + b)

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

Primarily includes minority interest, maintenance capex and environmental capex. See Appendix for details of the reconciliation.

$ in Millions, Except Per Share Amounts

US

Andes

Brazil

MCAC

EMEA

Asia

Total SBUs

Corp/Other

Total AES Adjusted PTC^1,2

Adjusted Effective Tax Rate

Diluted Share Count

Adjusted EPS¹

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

Includes $4 million and $13 million of after-tax net equity in earnings of affiliates in first quarter 2013 and 2012, respectively.

US – An increase of $42 million, primarily due to the acceleration of future earnings at Beaver Valley as a result of the termination of the PPA during the quarter.

Andes – A decrease of $31 million driven by lower dispatch of gas-fired generation in Chile.

Brazil – A decrease of $66 million due to low hydrology at Tietê and lower demand at Sul, as well as unfavorable movements in the Brazilian Real.

MCAC – A decrease of $21 million due primarily to low hydrology in Panama.

EMEA – A decrease of $96 million due primarily to a favorable one-time arbitration settlement at Cartagena in Spain in first quarter 2012 and a decline at Ballylumford in the United Kingdom, driven by a reduction in contracted capacity prices.

Asia – With a decrease of $1 million, the Asia SBU was roughly flat from first quarter 2012.

Corp/Other – A decline of $25 million due to lower interest and general and administrative expense.

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

Asset impairment expense

Foreign currency transaction losses

Other non-operating expense

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

Income tax expense

Net equity in earnings of affiliates

INCOME FROM CONTINUING OPERATIONS

Income from operations of discontinued businesses, net of income tax (benefit) expense of $(1) and $2, respectively

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

NET INCOME

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 ATTRIBUTABLE TO THE AES CORPORATION

AMOUNTS ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS:

Income from continuing operations, net of tax

Loss from discontinued operations, net of tax

Net income

BASIC EARNINGS PER SHARE:

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

Loss from discontinued operations attributable to The AES Corporation common stockholders, net of tax

NET INCOME ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS

DILUTED EARNINGS PER SHARE:

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

Loss from discontinued operations attributable to The AES Corporation common stockholders, net of tax

NET INCOME ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS

REVENUE

US

Andes

Brazil

MCAC⁽¹⁾

EMEA ⁽²⁾

Asia

Corporate, Other and Inter-SBU eliminations

Total Revenue

MCAC includes MCAC Utilities which is reported within Corporate and Other in the segment disclosures provided in the notes to the Company’s interim financial statements.

EMEA includes Africa Utilities which is reported within Corporate and Other in the segment disclosures provided in the notes to the Company’s interim financial statements.

ASSETS

CURRENT ASSETS

Cash and cash equivalents

Restricted cash

Short-term investments

Accounts receivable, net of allowance for doubtful accounts of $314 and $306, 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 $193 and $276, respectively

Deferred income taxes

Other noncurrent assets

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 $424 and $282, 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 $1,118 and $1,076, respectively, related to variable interest entities

Recourse debt

Deferred income taxes

Pension and other post-retirement liabilities

Other noncurrent liabilities

Noncurrent liabilities of discontinued operations and held for sale businesses

Total noncurrent liabilities

Cumulative preferred stock of subsidiaries

EQUITY

THE AES CORPORATION STOCKHOLDERS’ EQUITY

Common stock ($0.01 par value, 1,200,000,000 shares authorized; 812,021,363 issued and 746,474,449 outstanding at March 31, 2013 and 810,679,839 issued and 744,263,855 outstanding at December 31, 2012)

Additional paid-in capital

Accumulated deficit

Accumulated other comprehensive loss

Treasury stock, at cost (65,546,914 shares at March 31, 2013 and 66,415,984 shares at December 31, 2012)

Total AES Corporation stockholders’ equity

NONCONTROLLING INTERESTS

Total equity

TOTAL LIABILITIES AND EQUITY

OPERATING ACTIVITIES:

Net income

Adjustments to net income:

Depreciation and amortization

Gain from sale of investments and impairment expense

Deferred income taxes

Provisions for contingencies

Loss on the extinguishment of debt

Loss on disposals and impairments - 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

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

Proceeds from government grants for asset construction

Other investing

Net cash used in investing activities

FINANCING ACTIVITIES:

Borrowings (repayments) under the revolving credit facilities, net

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

Dividends paid on AES common stock

Financed capital expenditures

Other financing

Net cash 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

Cash and cash equivalents, beginning

Cash and cash equivalents, ending

SUPPLEMENTAL DISCLOSURES:

Cash payments for interest, net of amounts capitalized

Cash payments for income taxes, net of refunds

Income from continuing operations attributable to AES and Diluted EPS

Add back income tax expense from continuing operations attributable to AES

Pre-tax contribution

Adjustments

Unrealized derivative losses ⁽¹⁾

Unrealized foreign currency transaction (gains)/ losses ⁽²⁾

Disposition/ acquisition (gains)

Impairment losses

Debt retirement losses

Adjusted pre-tax contribution and Adjusted EPS

Unrealized derivative losses were net of income tax per share of $0.01 and $0.01 in the three months ended March 31, 2013 and 2012, respectively.

Unrealized foreign currency transaction (gains)/losses were net of income tax per share of $0.01 and $(0.01) in the three months ended March 31, 2013 and 2012, respectively.

Amount primarily relates to the gain from the sale of Chengdu, an equity method investment in China for $3 million ($2 million, or $0.00 per share, net of income tax of $0.00 per share).

Amount primarily relates to the gain from the sale of 80% of our interest in Cartagena for $178 million ($107 million, or $0.14 per share, net of income tax of $0.09 per share).

Amount primarily relates to asset impairments at Beaver Valley of $46 million ($32 million, or $0.04 per share, net of income tax of $0.02 per share).

Amount primarily relates to the other-than-temporary impairment of equity method investments in China of $32 million ($26 million, or $0.03 per share, net of income tax of $0.01 per share), and at InnoVent of $17 million ($12 million, or $0.02 per share, net of income tax of $0.01 per share).

Amount primarily relates to the loss on early retirement of debt at Masinloc of $43 million ($28 million, or $0.04 per share, net of noncontrolling interest of $3 million and of income tax of $0.01 per share).

Calculation of Maintenance Capital Expenditures for Free Cash Flow ⁽¹⁾ Reconciliation Below:

Maintenance Capital Expenditures,

Environmental Capital Expenditures

Growth Capital Expenditures

Total Capital Expenditures

Reconciliation of Proportional Operating Cash Flow⁽²⁾

Consolidated Operating Cash Flow

Less: Proportional Adjustment Factor

Proportional Operating Cash Flow ⁽²⁾

Reconciliation of Free Cash Flow⁽¹⁾

Consolidated Operating Cash Flow

Less: Maintenance Capital Expenditures, net of reinsurance proceeds

Less: Environmental Capital Expenditures

Free Cash Flow⁽¹⁾

Reconciliation of Proportional Free Cash Flow^(1),(2)

Proportional Operating Cash Flow

Less: Proportional Maintenance Capital Expenditures net of reinsurance proceeds and Proportional Environmental Capital Expenditures

Proportional Free Cash Flow^(1),(2)

Free cash flow (a non-GAAP financial measure) is defined as net cash from operating activities less maintenance capital expenditures (including environmental capital expenditures), net of reinsurance proceeds from third parties. 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.

See footnote (2) on Guidance Elements for definition of proportional financial metric.

Subsidiary distributions ⁽¹⁾ to Parent & QHCs

Returns of capital distributions to Parent & QHCs

Total subsidiary distributions & returns of capital to parent

Parent only data: quarterly

Subsidiary distributions to Parent & QHCs

Returns of capital distributions to Parent & QHCs

Total subsidiary distributions & returns of capital to Parent

Parent Company Liquidity ⁽²⁾

($ in millions)

Cash at Parent & Cash at QHCs ⁽³⁾

Availability under credit facilities

Ending liquidity

Income Statement Guidance

Adjusted Earnings Per Share ⁽³⁾

Cash Flow Guidance

Net Cash Provided by Operating Activities

Free Cash Flow ⁽⁴⁾

Reconciliation of Free Cash Flow Guidance

Net Cash from Operating Activities

Less: Maintenance Capital Expenditures

Free Cash Flow ⁽⁴⁾

2013 Guidance is based on expectations for future foreign exchange rates and commodity prices as of March 31, 2013.

AES 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, Net Cash from Operating Activities (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 of the Company. 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) inter-segment transactions are included as applicable for the metric presented.

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) 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. The GAAP measure most comparable to Adjusted EPS is diluted earnings per share from continuing operations. 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 unrealized gains or losses related to derivative transactions, unrealized foreign currency gains or losses, losses due to impairments and strategic decisions to dispose or acquire business interests or retire debt, which affect results in a given period or periods. Adjusted earnings per share should not be construed as an alternative to diluted earnings per share from continuing operations, which is determined in accordance with GAAP. Non-GAAP financial measure as reconciled in the table.

Free Cash Flow is reconciled above. Free cash flow (a non-GAAP financial measure) is defined as net cash from operating activities less maintenance capital expenditures (including environmental capital expenditures), net of reinsurance proceeds from third parties. 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.