AES Expects Full Year 2023 Adjusted EPS to be in the Top Half of Guidance Range of $1.65 to $1.75

_________________________________

¹ Adjusted EPS is a non-GAAP financial measure.  See attached "Non-GAAP Measures" for definition of Adjusted EPS and a description of the adjustments to reconcile Adjusted EPS to Diluted EPS for the quarter and nine months ended September 30, 2023.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EPS guidance without unreasonable effort.

² Adjusted EBITDA is a non-GAAP financial measure.  See attached "Non-GAAP Measures" for definition of Adjusted EBITDA and a description of the adjustments to reconcile Adjusted EBITDA to Net Income for the quarter and nine months ended September 30, 2023.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EBITDA guidance without unreasonable effort.

³ Pre-tax effect of Production Tax Credits, Investment Tax Credits, and depreciation tax expense allocated to tax equity investors.

⁴ Adjusted EPS is a non-GAAP financial measure.  See attached "Non-GAAP Measures" for definition of Adjusted EPS and a description of the adjustments to reconcile Adjusted EPS to Diluted EPS for the quarter and nine months ended September 30, 2023.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EPS guidance without unreasonable effort.

⁵ Adjusted EBITDA is a non-GAAP financial measure.  See attached "Non-GAAP Measures" for definition of Adjusted EBITDA and a description of the adjustments to reconcile Adjusted EBITDA to Net Income for the quarter and nine months ended September 30, 2023.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EBITDA guidance without unreasonable effort.

⁶ Pre-tax effect of Production Tax Credits, Investment Tax Credits, and depreciation tax expense allocated to tax equity investors.

⁷ Adjusted EPS is a non-GAAP financial measure.  See attached "Non-GAAP Measures" for definition of Adjusted EPS and a description of the adjustments to reconcile Adjusted EPS to Diluted EPS for the quarter and nine months ended September 30, 2023.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EPS guidance without unreasonable effort.

⁸ Adjusted EBITDA is a non-GAAP financial measure.  See attached "Non-GAAP Measures" for definition of Adjusted EBITDA and a description of the adjustments to reconcile Adjusted EBITDA to Net Income for the quarter and nine months ended September 30, 2023.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EBITDA guidance without unreasonable effort.

THE AES CORPORATION

Condensed Consolidated Statements of Operations (Unaudited)

Three Months Ended
September 30,

Nine Months Ended September
30,

2023

2022

2023

2022

(in millions, except per share amounts)

Revenue:

Non-Regulated

$           2,571

$      2,651

$           7,051

$           6,944

Regulated

863

976

2,649

2,613

Total revenue

3,434

3,627

9,700

9,557

Cost of Sales:

Non-Regulated

(1,813)

(1,839)

(5,392)

(5,237)

Regulated

(703)

(896)

(2,298)

(2,335)

Total cost of sales

(2,516)

(2,735)

(7,690)

(7,572)

Operating margin

918

892

2,010

1,985

General and administrative expenses

(64)

(51)

(191)

(149)

Interest expense

(326)

(276)

(966)

(813)

Interest income

144

100

398

270

Loss on extinguishment of debt

—

(1)

(1)

(8)

Other expense

(12)

(10)

(38)

(51)

Other income

12

4

36

80

Gain (loss) on disposal and sale of business interests

—

1

(4)

—

Asset impairment expense

(158)

(50)

(352)

(533)

Foreign currency transaction gains (losses)

(100)

8

(209)

(60)

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

414

617

683

721

Income tax expense

(109)

(145)

(179)

(186)

Net equity in losses of affiliates

(14)

(26)

(43)

(54)

NET INCOME

291

446

461

481

Less: Net income attributable to noncontrolling interests and redeemable
stock of subsidiaries

(60)

(25)

(118)

(124)

NET INCOME ATTRIBUTABLE TO THE AES CORPORATION

$              231

$         421

$              343

$              357

BASIC EARNINGS PER SHARE:

NET INCOME ATTRIBUTABLE TO THE AES CORPORATION COMMON
STOCKHOLDERS

$             0.34

$        0.63

$             0.51

$             0.53

DILUTED EARNINGS PER SHARE:

NET INCOME ATTRIBUTABLE TO THE AES CORPORATION COMMON
STOCKHOLDERS

$             0.32

$        0.59

$             0.48

$             0.50

DILUTED SHARES OUTSTANDING

712

711

712

711

THE AES CORPORATION

Strategic Business Unit (SBU) Information

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

(in millions)

2023

2022

2023

2022

REVENUE

Renewables SBU

$                  708

$                  532

$               1,744

$               1,407

Utilities SBU

880

994

2,703

2,674

Energy Infrastructure SBU

1,861

2,126

5,239

5,553

New Energy Technologies SBU

—

—

75

2

Corporate and Other

29

24

96

81

Eliminations

(44)

(49)

(157)

(160)

Total Revenue

$               3,434

$               3,627

$               9,700

$               9,557

THE AES CORPORATION

Condensed Consolidated Balance Sheets (Unaudited)

September 30,
2023

December 31,
2022

(in millions, except share

and per share data)

ASSETS

CURRENT ASSETS

Cash and cash equivalents

$                 1,765

$                 1,374

Restricted cash

365

536

Short-term investments

538

730

Accounts receivable, net of allowance for doubtful accounts of $9 and $5, respectively

1,725

1,799

Inventory

798

1,055

Prepaid expenses

161

98

Other current assets

1,432

1,533

Current held-for-sale assets

493

518

Total current assets

7,277

7,643

NONCURRENT ASSETS

Property, Plant and Equipment:

Land

492

470

Electric generation, distribution assets and other

27,998

26,599

Accumulated depreciation

(8,602)

(8,651)

Construction in progress

7,647

4,621

Property, plant and equipment, net

27,535

23,039

Other Assets:

Investments in and advances to affiliates

894

952

Debt service reserves and other deposits

205

177

Goodwill

362

362

Other intangible assets, net of accumulated amortization of $486 and $434, respectively

2,290

1,841

Deferred income taxes

428

319

Loan receivable, net of allowance of $24 and $26,  respectively

990

1,051

Other noncurrent assets, net of allowance of $16 and $51, respectively

3,180

2,979

Total other assets

8,349

7,681

TOTAL ASSETS

$               43,161

$               38,363

LIABILITIES AND EQUITY

CURRENT LIABILITIES

Accounts payable

$                 1,641

$                 1,730

Accrued interest

379

249

Accrued non-income taxes

269

249

Accrued and other liabilities

2,442

2,151

Recourse debt

700

—

Non-recourse debt, including $1,015 and $416, respectively, related to variable interest entities

3,060

1,758

Current held-for-sale liabilities

328

354

Total current liabilities

8,819

6,491

NONCURRENT LIABILITIES

Recourse debt

4,864

3,894

Non-recourse debt, including $1,781 and $2,295, respectively, related to variable interest entities

18,767

17,846

Deferred income taxes

1,257

1,139

Other noncurrent liabilities

2,775

3,168

Total noncurrent liabilities

27,663

26,047

Commitments and Contingencies

Redeemable stock of subsidiaries

1,423

1,321

EQUITY

THE AES CORPORATION STOCKHOLDERS' EQUITY

Preferred stock (without par value, 50,000,000 shares authorized; 1,043,050 issued and
outstanding at September 30, 2023 and December 31, 2022)

838

838

Common stock ($0.01 par value, 1,200,000,000 shares authorized; 819,051,591 issued and
669,629,035 outstanding at September 30, 2023 and 818,790,001 issued and 668,743,464
outstanding at December 31, 2022)

8

8

Additional paid-in capital

6,449

6,688

Accumulated deficit

(1,292)

(1,635)

Accumulated other comprehensive loss

(1,410)

(1,640)

Treasury stock, at cost (149,422,556 and 150,046,537 shares at September 30, 2023 and
December 31, 2022, respectively)

(1,814)

(1,822)

Total AES Corporation stockholders' equity

2,779

2,437

NONCONTROLLING INTERESTS

2,477

2,067

Total equity

5,256

4,504

TOTAL LIABILITIES AND EQUITY

$               43,161

$               38,363

THE AES CORPORATION

Condensed Consolidated Statements of Cash Flows

(Unaudited)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2023

2022

2023

2022

(in millions)

(in millions)

OPERATING ACTIVITIES:

Net income

$            291

$            446

$            461

$            481

Adjustments to net income:

Depreciation and amortization

286

266

836

800

Loss on disposal and sale of business interests

—

(1)

4

—

Impairment expense

159

50

358

533

Deferred income taxes

17

43

(102)

—

Loss of affiliates, net of dividends

18

26

47

78

Emissions allowance expense

72

80

211

319

Loss on realized/unrealized foreign currency

113

25

184

45

Other

50

(36)

150

(1)

Changes in operating assets and liabilities:

(Increase) decrease in accounts receivable

(44)

(147)

16

(409)

(Increase) decrease in inventory

(23)

(134)

253

(361)

(Increase) decrease in prepaid expenses and other current assets

45

71

116

(116)

(Increase) decrease in other assets

(118)

157

(44)

251

Increase (decrease) in accounts payable and other current liabilities

118

(43)

(187)

108

Increase (decrease) in income tax payables, net and other tax payables

18

(17)

(67)

(131)

Increase (decrease) in deferred income

8

(11)

50

48

Increase (decrease) in other liabilities

112

9

23

4

Net cash provided by operating activities

1,122

784

2,309

1,649

INVESTING ACTIVITIES:

Capital expenditures

(1,899)

(1,052)

(5,295)

(2,711)

Acquisitions of business interests, net of cash and restricted cash acquired

(21)

(7)

(311)

(114)

Proceeds from the sale of business interests, net of cash and restricted cash sold

—

—

98

1

Sale of short-term investments

296

309

1,002

654

Purchase of short-term investments

(144)

(397)

(764)

(1,091)

Contributions and loans to equity affiliates

(35)

(33)

(147)

(202)

Affiliate repayments and returns of capital

—

71

—

71

Purchase of emissions allowances

(46)

(122)

(161)

(415)

Other investing

(74)

(11)

(95)

(18)

Net cash used in investing activities

(1,923)

(1,242)

(5,673)

(3,825)

FINANCING ACTIVITIES:

Borrowings under the revolving credit facilities and commercial paper program

17,265

1,114

33,981

4,214

Repayments under the revolving credit facilities and commercial paper program

(16,359)

(513)

(32,168)

(2,782)

Issuance of recourse debt

—

200

1,400

200

Repayments of recourse debt

—

—

—

(29)

Issuance of non-recourse debt

327

422

1,784

3,554

Repayments of non-recourse debt

(318)

(303)

(1,262)

(1,772)

Payments for financing fees

(9)

(45)

(76)

(83)

Purchases under supplier financing arrangements

489

126

1,307

299

Repayments of obligations under supplier financing arrangements

(237)

(100)

(1,099)

(234)

Distributions to noncontrolling interests

(26)

(36)

(173)

(129)

Acquisitions of noncontrolling interests

(11)

(1)

(12)

(541)

Contributions from noncontrolling interests

45

94

63

122

Sales to noncontrolling interests

182

107

371

336

Issuance of preferred shares in subsidiaries

—

—

3

60

Dividends paid on AES common stock

(111)

(105)

(333)

(316)

Payments for financed capital expenditures

(1)

(14)

(8)

(23)

Other financing

(25)

(7)

(38)

(13)

Net cash provided by financing activities

1,211

939

3,740

2,863

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(71)

(26)

(108)

(44)

Increase in cash, cash equivalents and restricted cash of held-for-sale businesses

(14)

(72)

(20)

(93)

Total increase in cash, cash equivalents and restricted cash

325

383

248

550

Cash, cash equivalents and restricted cash, beginning

2,010

1,651

2,087

1,484

Cash, cash equivalents and restricted cash, ending

$         2,335

$         2,034

$         2,335

$         2,034

SUPPLEMENTAL DISCLOSURES:

Cash payments for interest, net of amounts capitalized

$            223

$            231

$            735

$            654

Cash payments for income taxes, net of refunds

67

62

267

203

SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:

Initial recognition of contingent consideration for acquisitions (see Note 18)

$               (3)

(15)

215

15

Noncash recognition of new operating and financing leases

$              16

35

187

129

Noncash contributions from noncontrolling interests

$              30

—

60

—

Three Months Ended September 30,

Nine Months Ended September 30,

Reconciliation of Adjusted EBITDA (in millions)

2023

2022

2023

2022

Net income (loss)

$                 291

$                 446

$                 461

$                 481

Income tax expense (benefit)

109

145

179

186

Interest expense

326

276

966

813

Interest income

(144)

(100)

(398)

(270)

Depreciation and amortization

286

266

836

800

EBITDA

$                 868

$              1,033

$              2,044

$              2,010

Less: Adjustment for noncontrolling interests and redeemable stock of subsidiaries ⁽¹⁾

(183)

(174)

(508)

(486)

Less: Income tax expense (benefit), interest expense (income) and depreciation and amortization from equity affiliates

27

36

93

93

Interest income recognized under service concession arrangements

18

19

54

58

Unrealized derivative and equity securities losses (gains)

10

(8)

3

—

Unrealized foreign currency losses

97

3

161

23

Disposition/acquisition losses

8

4

21

36

Impairment losses

145

17

318

497

Loss on extinguishment of debt

—

1

1

7

Adjusted EBITDA

$                 990

$                 931

$              2,187

$              2,238

Tax attributes allocated to tax equity investors

18

60

69

109

Adjusted EBITDA with Tax Attributes ⁽²⁾

$              1,008

$                 991

$              2,256

$              2,347

_____________________________

⁽¹⁾

The allocation of earnings to tax equity investors from both consolidated entities and equity affiliates is removed from Adjusted EBITDA.

⁽²⁾

Adjusted EBITDA with Tax Attributes includes the impact of the share of the ITCs, PTCs, and depreciation expense allocated to tax equity investors under the
HLBV accounting method and recognized as Net loss attributable to noncontrolling interests and redeemable stock of subsidiaries on the Condensed
Consolidated Statements of Operations. All of the tax attributes are related to the Renewables SBU.

Three Months Ended
September 30, 2023

Three Months Ended
September 30, 2022

Nine Months Ended
September 30, 2023

Nine Months Ended
September 30, 2022

Net of NCI
⁽¹⁾

Per Share
(Diluted)
Net of NCI
⁽¹⁾

Net of NCI
⁽¹⁾

Per Share
(Diluted)
Net of NCI
⁽¹⁾

Net of NCI
⁽¹⁾

Per Share
(Diluted)
Net of NCI
⁽¹⁾

Net of NCI
⁽¹⁾

Per Share
(Diluted)
Net of NCI
⁽¹⁾

(in millions, except per share amounts)

Income from continuing operations,
net of tax, attributable to AES and
Diluted EPS

$     231

$    0.32

$     421

$    0.59

$     343

$     0.48

$      357

$     0.50

Add: Income tax expense from
continuing operations attributable to AES

101

128

136

149

Pre-tax contribution

$     332

$     549

$     479

$      506

Adjustments

Unrealized derivative and equity
securities losses (gains)

$         9

$    0.01

$        (8)

$   (0.01)

$         3

$         —

(2)

$         (2)

$         —

Unrealized foreign currency losses

96

0.14

(3)

3

—

160

0.22

(4)

23

0.03

(5)

Disposition/acquisition losses

8

0.01

4

0.01

21

0.03

36

0.05

(6)

Impairment losses

145

0.21

(7)

17

0.02

(8)

318

0.45

(9)

497

0.70

(10)

Loss on extinguishment of debt

3

—

4

0.01

7

0.01

20

0.03

Less: Net income tax expense (benefit)

(0.09)

(11)

0.01

(0.16)

(12)

(0.13)

(13)

Adjusted PTC and Adjusted EPS

$     593

$    0.60

$     569

$    0.63

$     988

$     1.03

$   1,080

$     1.18

____________________________

⁽¹⁾

NCI is defined as Noncontrolling Interests.

⁽²⁾

Amount primarily relates to unrealized derivative losses due to the termination of a PPA of $72 million, or $0.10 per share and unrealized derivative losses at AES Clean Energy of $20 million, or $0.03 per share, offset by unrealized derivative gains at the Energy Infrastructure SBU of $108 million, or $0.15 per share.

⁽³⁾

Amount primarily relates to unrealized foreign currency losses mainly associated with the devaluation of long-term receivables denominated in Argentine pesos of $60 million, or $0.08 per share, unrealized foreign currency losses at AES Andes of $21 million, or $0.03 per share, and unrealized foreign currency losses on debt in Brazil of $10 million, or $0.01 per share.

⁽⁴⁾

Amount primarily relates to unrealized foreign currency losses mainly associated with the devaluation of long-term receivables denominated in Argentine pesos of $109 million, or $0.15 per share, and unrealized foreign currency losses at AES Andes of $54 million, or $0.08 per share.

⁽⁵⁾

Amount primarily relates to unrealized foreign currency losses mainly associated with the devaluation of long-term receivables denominated in Argentine pesos of $19 million, or $0.03 per share.

⁽⁶⁾

Amount primarily relates to the recognition of an allowance on the AES Gilbert sales-type lease receivable as a cost of disposition of a business interest of $20 million, or $0.03 per share.

⁽⁷⁾

Amount primarily relates to asset impairments at TEG and TEP of $76 million and $58 million, respectively, or $0.19 per share.

⁽⁸⁾

Amount primarily relates to asset impairment at Jordan of $19 million, or $0.03 per share.

⁽⁹⁾

Amount primarily relates to asset impairments at the Norgener coal-fired plant in Chile of $136 million, or $0.19 per share, at TEG and TEP of $76 million and $58 million, respectively, or $0.19 per share, the GAF Projects at AES Renewable Holdings of $18 million, or $0.03 per share, and at Jordan of $16 million, or $0.02 per share.

⁽¹⁰⁾

Amount primarily relates to asset impairment at Maritza of $468 million, or $0.66 per share, and at Jordan of $19 million, or $0.03 per share.

⁽¹¹⁾

Amount primarily relates to income tax benefits associated with the asset impairments at TEG and TEP of $34 million, or $0.05 per share and income tax benefits associated with unrealized foreign currency losses at AES Andes of $6 million, or $0.01 per share.

⁽¹²⁾

Amount primarily relates to income tax benefits associated with the asset impairments at the Norgener coal fired plant in Chile of $35 million, or $0.05 per share and at TEG and TEP of $34 million, or $0.05 per share, income tax benefits associated with the recognition of unrealized losses due to the termination of a PPA of $18 million, or $0.02 per share, and income tax benefits associated with unrealized foreign currency losses at AES Andes of $14 million, or $0.02 per share.

⁽¹³⁾

Amount primarily relates to income tax benefits associated with the impairment at Maritza of $73 million, or $0.10 per share, and at Jordan of $8 million, or $0.01 per share.

The AES Corporation

Parent Financial Information

Parent only data: last four quarters

(in millions)

4 Quarters Ended

Total subsidiary distributions & returns of capital to Parent

September
30, 2023

June 30, 2023

March 31,
2023

December 31,
2022

Actual

Actual

Actual

Actual

Subsidiary distributions¹ to Parent & QHCs

$             1,625

$             1,383

$             1,489

$            1,298

Returns of capital distributions to Parent & QHCs

116

56

56

—

Total subsidiary distributions & returns of capital to Parent

$             1,741

$             1,439

$             1,545

$            1,298

Parent only data: quarterly

(in millions)

Quarter Ended

Total subsidiary distributions & returns of capital to Parent

September
30, 2023

June 30, 2023

March 31,
2023

December 31,
2022

Actual

Actual

Actual

Actual

Subsidiary distributions¹ to Parent & QHCs

$                311

$                205

$                356

$               753

Returns of capital distributions to Parent & QHCs

60

—

56

—

Total subsidiary distributions & returns of capital to Parent

$                371

$                205

$                412

$               753

(in millions)

Balance at

September 30,
2023

June 30, 2023

March 31,
2023

December 31,
2022

Parent Company Liquidity²

Actual

Actual

Actual

Actual

Cash at Parent & Cash at QHCs³

$                  51

$                  35

$                117

$                 24

Availability under credit facilities

857

883

970

1,141

Ending liquidity

$                908

$                918

$             1,087

$            1,165

_______________________________

⁽¹⁾

Subsidiary distributions received by Qualified Holding Companies ("QHCs") excluded from Schedule 1. Subsidiary Distributions should not be
construed as an alternative to Consolidated Net Cash Provided by Operating Activities, which is determined in accordance with US
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 the difference between the Subsidiary
Distributions and Consolidated 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.

⁽²⁾

Parent Company Liquidity is defined as cash available to the Parent Company, including cash at qualified holding companies (QHCs), plus
available borrowings under our existing credit facility. 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' indebtedness.

⁽³⁾

The cash held at QHCs represents cash sent to subsidiaries of the company domiciled outside of the US. Such subsidiaries have 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 US. These investments included equity investments and loans to other foreign subsidiaries as well as development and general
costs and expenses incurred outside the US. 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.