Press Release Investor Contact: Susan Harcourt 703-682-1204, susan.harcourt@aes.com Media Contact: Amy Ackerman 703-682-6399, amy.ackerman@aes.com AES Reports Record Sales with Data Center Hyperscalers Now Expects to Achieve Upper Half of 2024 Adjusted EPS Guidance Range Strategic Accomplishments Q2 2024 Financial Highlights Financial Position and Outlook ARLINGTON, Va., August 1, 2024 – The AES Corporation (NYSE: AES) today reported financial results for the quarter ended June 30, 2024. Pre-tax effect of P ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ______________________________________________________________________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 1-12291 THE AES CORPORATION (Exact name of registrant as specified in it ...

The AES Corporation First Quarter 2024 Financial Review May 3, 2024 CONTAINS FORWARD-LOOKING STATEMENTS Safe Harbor Disclosure ...

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA with tax attributes of $863 million for Q1 2024, up from $641 million in the same quarter last year, driven primarily by contributions from new renewables [17] - Adjusted EPS for the quarter was $0.50, compared to $0.22 last year, reflecting similar drivers as adjusted EBITDA [18] - The company reaffirmed its 2024 adjusted EBITDA guidance of $3.6 billion to $4 billion and adjusted EPS guidance of $1.87 to $1.97 [21][22] Business Line Data and Key Metrics Changes - The renewables strategic business unit (SBU) saw higher EBITDA driven by new business contributions, although partially offset by lower renewable resource performance in Panama and Brazil [19] - The utilities SBU experienced higher adjusted total contribution costs (TTC) due to favorable weather and increased revenues from investments in the rate base [20] - The energy infrastructure SBU showed relatively flat EBITDA, reflecting prior year higher LNG transaction margins and the sell-down of gas and LNG businesses [20] Market Data and Key Metrics Changes - Power demand in the U.S. is forecasted to increase significantly over the next decade, driven by data center growth, onshoring of manufacturing, and electrification of mobility [9] - Renewables are expected to provide the lowest levelized cost of energy (LCOE) for new builds on an unsubsidized basis, with 95% of capacity additions in the U.S. in 2024 expected to come from solar energy storage and wind [10][9] Company Strategy and Development Direction - The company signed a 15-year contract with Amazon for the Bellefield project, which will provide 2 gigawatts of combined solar and storage, marking a significant milestone in renewable energy [7][8] - The company has a pipeline of 66 gigawatts of projects, emphasizing a strategic approach to building its pipeline in high-demand markets [12] - The company aims to increase its U.S. project return expectations by 200 basis points to 12% to 15% on a levered, after-tax cash basis [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute plans and maintain resilience against high interest rates and inflation [6] - The company sees strong and accelerating demand for renewables in core markets, particularly from data centers [29] - Management highlighted the importance of supply chain management in delivering renewable projects on time and on budget [29] Other Important Information - The company achieved a critical milestone with the approval of its rate case by the Indiana Utility Regulatory Commission, allowing for a $71 million rate case increase [14] - The company closed on the acquisition of the 106-megawatt Hoosier wind project, adding to its renewable portfolio [15] - The company reported nearly 100% increase in Q1 investment in utilities compared to last year, driven by new rate structures [16] Q&A Session Summary Question: Can you expand on the asset sale programs and future equity issuance? - Management indicated a strong track record of overachieving asset sale targets and expressed confidence in potentially eliminating future equity issuance depending on asset sales and growth programs [34] Question: What are the thoughts on data center opportunities and partnerships? - Management noted that they have established strong relationships with technology companies and are focused on meeting their needs through innovative solutions [36][38] Question: How does the company position itself regarding potential tariffs? - Management expressed confidence in their preparedness for potential tariffs, stating that they have secured necessary materials for upcoming projects [42][44] Question: What is the outlook on the pace of renewable deployment? - Management acknowledged the accelerating demand for data centers and emphasized the importance of having advanced pipelines to meet this demand [50] Question: Can you discuss transmission constraints and interconnection perspectives? - Management highlighted the use of dynamic line rating and battery projects to optimize existing transmission capacity and avoid costs [52][54] Question: What is the current focus on hydrogen projects? - Management confirmed progress on a significant green hydrogen project in Texas, awaiting final regulations [57] Question: How is the company addressing the demand for renewables? - Management reported strong demand for renewables and a robust pipeline, with significant contracts signed in the first quarter [60][61]

Financial Performance - The AES Corporation reported a diluted EPS of $0.60 for Q1 2024, an increase of 186% compared to $0.21 in Q1 2023[4] - Adjusted EPS for Q1 2024 was $0.50, up 127% from $0.22 in Q1 2023[4] - Net Income for Q1 2024 reached $278 million, a $89 million increase from $189 million in Q1 2023[6] - Total revenue for Q1 2024 was $3,085 million, a decrease of 4.8% from $3,239 million in Q1 2023[23] - Net income attributable to AES Corporation increased to $432 million in Q1 2024, compared to $151 million in Q1 2023, representing a growth of 186.1%[23] - Basic earnings per share rose to $0.62 in Q1 2024, up from $0.22 in Q1 2023, reflecting a 181.8% increase[23] - For the three months ended March 31, 2024, net income was $278 million, compared to $189 million for the same period in 2023, representing a 47% increase[32] - The diluted earnings per share (EPS) for Q1 2024 was $0.60, up from $0.21 in Q1 2023, marking a substantial increase of 185.7%[37] Adjusted Metrics - Adjusted EBITDA for Q1 2024 was $635 million, a slight increase of $7 million compared to $628 million in Q1 2023[7] - Adjusted EBITDA for Q1 2024 was $635 million, slightly up from $628 million in Q1 2023, indicating a stable performance year-over-year[32] - Adjusted EBITDA with Tax Attributes reached $863 million in Q1 2024, compared to $641 million in Q1 2023, reflecting a significant increase of 34.6%[32] - The company reaffirmed its 2024 guidance for Adjusted EPS of $1.87 to $1.97, driven by new renewables commissionings and rate base growth[12] - Adjusted EBITDA guidance for 2024 is reaffirmed at $2,600 to $2,900 million, with expectations of annualized growth of 5% to 7% through 2027[10] Project Development - The company signed an additional 1 GW of solar-plus-storage under a long-term contract with Amazon, totaling 2 GW at Bellefield, California[1] - The total backlog of projects signed under long-term contracts reached 12.7 GW, including 5.8 GW under construction[11] Capital and Assets - Cash and cash equivalents increased to $1,994 million as of March 31, 2024, compared to $1,426 million at the end of 2023, marking a growth of 39.7%[27] - Total assets grew to $47,045 million as of March 31, 2024, up from $44,799 million at the end of 2023, an increase of 5.0%[27] - Capital expenditures for Q1 2024 were $2,148 million, an increase from $1,551 million in Q1 2023, representing a rise of 38.5%[29] Liabilities and Cash Flow - Total current liabilities decreased to $9,211 million as of March 31, 2024, from $9,731 million at the end of 2023, a reduction of 5.3%[27] - Net cash provided by operating activities was $287 million in Q1 2024, down from $625 million in Q1 2023, a decrease of 54.1%[29] - Total subsidiary distributions to the Parent Company for Q1 2024 amounted to $1,577 million, a decrease from $1,602 million in Q4 2023[42] - The Parent Company liquidity at the end of Q1 2024 was $732 million, down from $1,409 million at the end of Q4 2023, indicating a reduction in available cash[42] Impairments and Gains - The company reported impairment losses of $26 million in Q1 2024, compared to $9 million in Q1 2023, highlighting an increase in asset impairments[40] - The company reported a gain on disposal and sale of business interests of $43 million in Q1 2024, compared to no gain in Q1 2023[29] - Unrealized derivative gains contributed $68 million, or $0.10 per share, to the financial results in Q1 2024, reflecting the impact of market fluctuations[39] - The company recognized a loss on extinguishment of debt and troubled debt restructuring amounting to $34 million in Q1 2024, compared to $4 million in Q1 2023[40] Strategic Initiatives - The company retired 276 MW of coal capacity in Chile, contributing to a total of 13.5 GW of coal exits since 2017[4] - AES Indiana received approval for a rate case settlement, allowing for investments in reliability and enhanced customer offerings[4] Revenue Segments - The Renewables Strategic Business Unit (SBU) revenue increased by 25.1% to $619 million in Q1 2024 from $495 million in Q1 2023[25] - The adjusted PTC for Q1 2024 was $336 million, compared to $204 million in Q1 2023, representing a 64.7% increase year-over-year[40]

PART I: FINANCIAL INFORMATION [ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)](index=6&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20%28UNAUDITED%29) This section presents the unaudited condensed consolidated financial statements for the three months ended March 31, 2024, showing total assets increased to **$47.0 billion** and net income attributable to The AES Corporation rose to **$432 million** with diluted EPS increasing to **$0.60** Condensed Consolidated Balance Sheet Highlights (As of March 31, 2024) | Account | March 31, 2024 (in millions) | December 31, 2023 (in millions) | | :--- | :--- | :--- | | **Total Current Assets** | $7,170 | $6,649 | | **Property, Plant and Equipment, net** | $31,906 | $29,958 | | **Total Assets** | **$47,045** | **$44,799** | | **Total Current Liabilities** | $9,211 | $9,731 | | **Total Noncurrent Liabilities** | $30,052 | $27,619 | | **Total Equity** | $6,280 | $5,985 | | **Total Liabilities and Equity** | **$47,045** | **$44,799** | Condensed Consolidated Statement of Operations (Three Months Ended March 31) | Account | 2024 (in millions) | 2023 (in millions) | | :--- | :--- | :--- | | **Total Revenue** | $3,085 | $3,239 | | Operating Margin | $619 | $594 | | Income from Continuing Operations Before Taxes | $277 | $265 | | **Net Income** | $278 | $189 | | **Net Income Attributable to The AES Corporation** | **$432** | **$151** | | **Diluted EPS** | **$0.60** | **$0.21** | Condensed Consolidated Statement of Cash Flows (Three Months Ended March 31) | Activity | 2024 (in millions) | 2023 (in millions) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $287 | $625 | | **Net cash used in investing activities** | $(2,386) | $(1,624) | | **Net cash provided by financing activities** | $2,606 | $1,016 | | **Total increase (decrease) in cash** | $565 | $(10) | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the basis of financial statement presentation and key accounting events, including equity unit conversion, debt issuances, financial restructuring, asset acquisition, and impairment of the Mong Duong plant - On February 15, 2024, the company's Series A Preferred Stock was tendered to satisfy the 2024 Purchase Contract's settlement price, and the Corporate Units were converted into **40,531,845 shares of AES common stock**[74](index=74&type=chunk) - In March 2024, AES Indiana issued **$650 million** in First Mortgage Bonds and IPALCO issued **$400 million** in senior secured notes. AES Andes issued **$500 million** in senior unsecured notes[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) - AES Puerto Rico executed a financial restructuring on March 5, 2024, exchanging **$156 million** of bond loans for new senior secured bonds and preferred shares. This was accounted for as a troubled debt restructuring[47](index=47&type=chunk) - The company recognized a **$37 million pre-tax impairment expense** on its Mong Duong plant in Vietnam, which is classified as held-for-sale[97](index=97&type=chunk) - In February 2024, AES Indiana acquired **100%** of the interests in Hoosier Wind Project, LLC, a **106 MW wind facility**, for a total consideration of **$93 million**[106](index=106&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=33&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses Q1 2024 financial results, highlighting an **$89 million** increase in net income and a **$7 million** rise in Adjusted EBITDA, detailing performance by SBU, key trends, capital resources, and liquidity position [Executive Summary & Strategic Performance](index=33&type=section&id=Executive%20Summary%20%26%20Strategic%20Performance) In Q1 2024, net income increased to **$278 million** and Adjusted EBITDA rose to **$635 million**, driven by Utilities and New Energy Technologies, while the company advanced its clean energy strategy with **1.2 GW** of new renewables contracts Q1 2024 vs Q1 2023 Key Financial Metrics | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | **Net Income** | $278M | $189M | +$89M | | **Adjusted EBITDA** | $635M | $628M | +$7M | | **Diluted EPS** | $0.60 | $0.21 | +$0.39 | | **Adjusted EPS** | $0.50 | $0.22 | +$0.28 | - Strategic highlights include: - A renewables backlog of **12.7 GW**, with **5.8 GW** under construction[128](index=128&type=chunk) - Signed **1.2 GW** of new long-term renewables contracts since the Q4 2023 earnings call[128](index=128&type=chunk) - Completed or acquired **593 MW** of wind, solar, and energy storage projects, with a target to add **3.6 GW** total in 2024[128](index=128&type=chunk) - AES Indiana received approval for new customer rates effective mid-May 2024[128](index=128&type=chunk) [Review of Consolidated Results of Operations](index=36&type=section&id=Review%20of%20Consolidated%20Results%20of%20Operations) For Q1 2024, consolidated revenue decreased by **5%** to **$3.1 billion**, primarily due to lower revenues in Energy Infrastructure and Utilities SBUs, though total operating margin increased by **4%** to **$619 million** Revenue and Operating Margin by SBU (Three Months Ended March 31) | SBU (in millions) | Revenue 2024 | Revenue 2023 | Operating Margin 2024 | Operating Margin 2023 | | :--- | :--- | :--- | :--- | :--- | | Renewables | $619 | $495 | $53 | $88 | | Utilities | $873 | $971 | $120 | $105 | | Energy Infrastructure | $1,614 | $1,724 | $404 | $375 | | New Energy Technologies | $0 | $74 | $(2) | $(4) | | **Total** | **$3,085** | **$3,239** | **$619** | **$594** | - Revenue decreased by **$154 million (5%)**, mainly due to a **$110 million** decline at Energy Infrastructure and a **$98 million** decline at Utilities[133](index=133&type=chunk)[136](index=136&type=chunk) - Operating margin increased by **$25 million (4%)**, driven by a **$29 million** increase at Energy Infrastructure and a **$15 million** increase at Utilities, partially offset by a **$35 million** decrease at Renewables[135](index=135&type=chunk)[137](index=137&type=chunk)[146](index=146&type=chunk) [SBU Performance Analysis](index=40&type=section&id=SBU%20Performance%20Analysis) The SBU analysis shows mixed performance, with Utilities SBU Adjusted EBITDA increasing to **$182 million**, Renewables SBU's Adjusted EBITDA decreasing to **$102 million** but surging to **$328 million** with Tax Attributes, and New Energy Technologies reducing its loss Adjusted EBITDA by SBU (Three Months Ended March 31, in millions) | SBU | 2024 | 2023 | $ Change | | :--- | :--- | :--- | :--- | | Renewables | $102 | $124 | $(22) | | Utilities | $182 | $162 | $20 | | Energy Infrastructure | $360 | $363 | $(3) | | New Energy Technologies | $(17) | $(26) | $9 | | **Total Adjusted EBITDA** | **$635** | **$628** | **$7** | - Renewables SBU's Adjusted EBITDA with Tax Attributes increased by **$191 million** to **$328 million**, primarily due to higher realized tax attributes from new U.S. projects[179](index=179&type=chunk)[181](index=181&type=chunk) - Utilities SBU performance was driven by higher demand from favorable weather and increased distribution and transmission revenues[184](index=184&type=chunk)[185](index=185&type=chunk) [Key Trends and Uncertainties](index=45&type=section&id=Key%20Trends%20and%20Uncertainties) Management identifies key trends and uncertainties including U.S. trade restrictions, supply chain disruptions, El Niño/La Niña impacts, benefits from the Inflation Reduction Act, Argentina's new government, global tax changes, and strategic decarbonization initiatives - **Operational Risks:** - **Supply Chain:** U.S. Commerce Department investigations and the UFLPA create uncertainty for solar panel imports from Southeast Asia, though AES has secured its **2024 panel requirements**[194](index=194&type=chunk)[198](index=198&type=chunk) - **Hydrology:** El Niño conditions are forecast through mid-2024, potentially impacting hydro generation in Panama, Colombia, and Chile. A transition to La Niña is possible by late Q3 2024[201](index=201&type=chunk)[202](index=202&type=chunk) - **Macroeconomic & Political Factors:** - **IRA:** The Inflation Reduction Act is expected to benefit the U.S. clean energy business through extended and new tax credits, supporting the **51 GW renewables pipeline**[209](index=209&type=chunk)[210](index=210&type=chunk) - **Argentina:** A new administration is pursuing economic deregulation and energy sector reform, the impact of which is not yet predictable[213](index=213&type=chunk) - **Puerto Rico:** PREPA's bankruptcy proceedings continue, but AES Puerto Rico completed a financial restructuring in March 2024 to address liquidity[225](index=225&type=chunk) - **Decarbonization:** AES intends to exit the substantial majority of its remaining coal facilities by **year-end 2025** and all coal facilities by **year-end 2027**, subject to approvals[228](index=228&type=chunk) [Capital Resources and Liquidity](index=54&type=section&id=Capital%20Resources%20and%20Liquidity) As of March 31, 2024, the company had **$2 billion** in unrestricted cash and cash equivalents and **$732 million** in Parent Company Liquidity, with primary cash sources from debt financings and operating activities, and uses for capital expenditures and debt repayments Parent Company Liquidity (in millions) | Component | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Parent Co. & qualified holding co. cash | $90 | $33 | | Borrowings available under credit facility | $642 | $1,376 | | **Total Parent Company Liquidity** | **$732** | **$1,409** | Summary of Cash-Based Activities (Q1 2024, in millions) | Type | Amount | | :--- | :--- | | **Total Cash Sources** | **$5,763** | | *Issuance of non-recourse debt* | *$2,131* | | *Borrowings under revolving credit facilities* | *$1,741* | | **Total Cash Uses** | **$(5,198)** | | *Capital expenditures* | *$(2,148)* | | *Repayments under revolving credit facilities* | *$(1,037)* | - Capital expenditures in Q1 2024 were **$2.15 billion**, a **$597 million** increase from Q1 2023, primarily driven by growth in U.S. renewables projects[281](index=281&type=chunk)[283](index=283&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=61&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company is exposed to market risks from commodity prices, interest rates, and foreign currency exchange rates, which are managed through derivatives and other strategies, with significant exposure to the Argentine peso - **Commodity Price Risk:** A **10% increase** in commodity prices is projected to have a pre-tax earnings impact of less than a **$15 million gain** for power, a **$5 million loss** for gas, and a **$5 million gain** for coal[307](index=307&type=chunk) - **Foreign Exchange Risk:** The company has unhedged forward-looking earnings risk from the Argentine peso that could be material. A **10% USD appreciation** would have a minimal net impact on cash distributions from other key foreign currencies due to hedging[315](index=315&type=chunk) - **Interest Rate Risk:** A one-time **100-basis-point increase** in interest rates would result in less than a **$25 million increase** in annual interest expense for the company's portfolio of variable-rate debt[319](index=319&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=64&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that disclosure controls and procedures were **effective** as of March 31, 2024[320](index=320&type=chunk) - No changes occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting[321](index=321&type=chunk) PART II: OTHER INFORMATION [ITEM 1. LEGAL PROCEEDINGS](index=65&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is involved in various legal proceedings, including arbitration with GRIDCO in India, lawsuits in the Dominican Republic seeking over **$1.9 billion** in damages, and arbitration with Mexico's CFE, believing outcomes are unlikely to be materially adverse - A challenge to a 2007 arbitration award in the company's favor remains pending in an Indian court regarding a dispute with GRIDCO, which had sought approximately **$189 million**[324](index=324&type=chunk) - Three separate lawsuits are pending in the Dominican Republic related to CCRs delivered in 2003-2004, with claimants seeking combined damages of over **$1.9 billion** for alleged personal injuries and deaths[328](index=328&type=chunk)[329](index=329&type=chunk)[334](index=334&type=chunk) - In Mexico, an arbitration tribunal rejected a **~$680 million claim** by CFE against AES Mérida III and awarded AES Mérida a net amount of damages on its counterclaims. Enforcement and challenge proceedings are ongoing in Mexican courts[332](index=332&type=chunk) [Other Part II Items](index=68&type=section&id=Other%20Part%20II%20Items) This section confirms no material changes to the risk factors disclosed in the 2023 Form 10-K, details the purchase of **165,335** common shares in a private transaction, and reports no defaults or Rule 10b5-1 trading arrangement adoptions - There have been **no material changes** to the risk factors disclosed in the 2023 Form 10-K[338](index=338&type=chunk) Issuer Purchases of Equity Securities (Q1 2024) | Period | Total Shares Purchased | Average Price Paid Per Share | Maximum Value Remaining for Purchase Under Program | | :--- | :--- | :--- | :--- | | Jan 1 - Jan 31 | 0 | N/A | $264,000,000 | | Feb 1 - Feb 29 | 0 | N/A | $264,000,000 | | Mar 1 - Mar 31 | 165,335 | $16.24 | $264,000,000 | | **Total** | **165,335** | **$16.24** | **$264,000,000** | - The **165,335 shares** purchased were part of a privately negotiated affiliate transaction and not under the public stock repurchase program[339](index=339&type=chunk)

The AES Corporation Fourth Quarter & Full Year 2023 Financial Review CONTAINS FORWARD-LOOKING STATEMENTS Safe Harbor Disclosure ...

Financial Data and Key Metrics - Adjusted EBITDA for 2023 was $2.8 billion, at the top end of the guidance range, with adjusted EBITDA including tax attributes reaching $3.4 billion [5] - Adjusted EPS for 2023 was $1.76, exceeding the guidance range of $1.65 to $1.75 [5] - Parent-free cash flow for 2023 was just over $1 billion, surpassing the guidance range of $950 million to $1 billion [5] - Asset sales proceeds for 2023 were $1.1 billion, significantly above the target range of $400 million to $600 million [5] - The company expects adjusted EBITDA to grow at an annual rate of 5% to 7% and adjusted EPS to grow at 7% to 9% through 2027 [6] Business Line Performance - The Renewable Strategic Business Unit (SBU) saw higher adjusted EBITDA, driven by 3.5 gigawatts of new projects coming online in 2023 and higher margins in Colombia [16] - The Utilities SBU experienced higher adjusted PTC due to the recovery of prior year's purchase power costs at AES Ohio and rate-based growth in the U.S. [16] - The Energy Infrastructure SBU saw lower adjusted EBITDA due to significant LNG transaction margins in 2022, lower margins in Chile, and the sale of a minority interest in Southland combined cycle assets [17] - The New Energy Technologies SBU reported higher adjusted EBITDA, with Fluence achieving positive adjusted EBITDA in their fiscal fourth quarter of 2023 [18] Market Performance - The company signed 5.6 gigawatts of new Power Purchase Agreements (PPAs) in 2023, the highest in its 43-year history, with a backlog of 12.3 gigawatts of projects [6][7] - Nearly 60% of the 3.5 gigawatts of projects brought online in 2023 were for corporate customers, particularly large technology companies [7] - The company is well-positioned to meet the growing energy demand from data centers, which is expected to more than double by 2030 [9] Strategic Direction and Industry Competition - The company is focusing on serving corporate customers, particularly in the data center sector, which is driving demand for renewable energy [7][9] - AES has a strong track record of delivering projects on time and on budget, which is a key differentiator in the industry [10] - The company has increased its U.S. return ranges by 200 basis points to 12% to 15% on a levered after-tax cash basis due to higher returns from renewable projects [9] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to market conditions and execute growth commitments, with a positive outlook for 2024 and beyond [27] - The company is well-positioned to meet the strong demand for renewables, particularly from data centers, and expects to achieve higher long-term growth targets [28] Other Important Information - The company has a multi-year strategic arrangement with top suppliers, including Fluence, which has helped achieve the best on-time project completion rate in the industry [11] - AES Ohio and AES Indiana are undergoing significant investment programs to improve service quality, decarbonization, and customer experience [12][13] Q&A Session Summary Question: Impact of Asset Sales on EBITDA Growth [30] - The flat EBITDA growth for 2024 is primarily due to the timing of asset sales, with a $200 million drag from the lag in redeploying capital [31] Question: Flexibility in Capital Allocation and Leverage Targets [32] - The company has flexibility in achieving its asset sale targets and is focused on maintaining investment-grade credit metrics [33][34] Question: Drivers of Higher Returns in Renewables [36] - Higher returns are driven by better-than-expected performance on prior PPAs, positioning in select markets with high demand, and increased efficiency in construction and development [37][38] Question: Contribution of Different Business Segments to Higher Growth Rates [41] - Both the utilities and renewables segments are contributing to higher growth rates, with utilities experiencing fast growth and renewables seeing improved returns [42] Question: Shift in Business Mix Due to Raised Growth Expectations [44] - The business mix is shifting slightly towards renewables, with a higher share of returns coming from this segment, while energy infrastructure is shrinking less than previously expected [45] Question: Capacity Additions and Returns Improvement [46] - The company is focusing on maximizing shareholder value rather than growth for growth's sake, with higher returns driven by cash generation rather than tax credits [48][51] Question: Timing of New Project Completions [53] - The flat level of gigawatts entering commercial operation in 2024 is due to project timing and the development of transfer projects, with no signal of underlying issues [54] Question: Credit Metrics and Leverage [56] - The company ended 2023 with a strong FFO to debt ratio of approximately 22%, with expectations to maintain or improve this ratio in 2024 [57] Question: Performance of Existing Assets [60] - The company has not seen any degradation in the performance of existing assets, with older projects performing better than forecasted [61] Question: Impact of Delayed Coal Plant Retirements [62] - Delayed coal plant retirements are providing some upside to EBITDA and smoothing out the reduction in EBITDA from coal exits [63][64] Question: Competition from Nuclear Power in Data Center Market [65] - The company does not see nuclear power as a significant threat to its renewable energy projects in the near term, given the strong demand for renewables and the challenges in building new nuclear plants [66][67] Question: Returns on Data Center Projects [68] - The company does not disclose specific returns for data center projects but notes that corporate customers are a key segment driving higher average returns [69] Question: Dividend Growth Policy [70] - The company has decided to grow dividends at a lower rate of 2% to 3% starting in 2025, reflecting the balance between attractive dividend yields and strong earnings growth [71][72] Question: Tax Credit Guidance for 2024 [75] - The $1 billion tax credit guidance for 2024 is driven by the success of the business, including the doubling of construction in 2023 and the earlier recognition of credits through transfers [76][77]

Press Release Investor Contact: Susan Harcourt 703-682-1204, susan.harcourt@aes.com Media Contact: Amy Ackerman 703-682-6399, amy.ackerman@aes.com AES Reports Record Performance in 2023 & Raises Long-Term Guidance Strategic Accomplishments • Signed new contracts for 5.6 GW of renewables in full year 2023, marking the third year in a row of adding 5 GW or more to the backlog • Completed construction of 3.5 GW of renewables in full year 2023, doubling new additions compared to 2022 • Secured $1.1 billion in a ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ____________________________________ FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2023 -OR- ☐ TRANSITION REPORT FILED PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 1-12291 THE AES CORPORATION (Exact name of registrant as specified in its charter) Delaware 54-1163725 (State or other jurisdiction of in ...