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AES CORPORATION
CORPORATION
AES Goals
--
Above Average
$3.5 Billion
Above Average
Above Average
11%
Below Average
--
Below Average
Subsidiary Distributions*
--
Increasing
Restructuring Opportunities
--
Ongoing
Platform Expansion
--
Focused
Greenfield Investment
--
--
Privatization/M&A
--
--
Financial Goals
Revenue Growth
Gross Margin Growth
Earnings Per Share Growth
ROIC Improvement*
Growth Goals
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* Non-GAAP financial measure. See Appendix.
Cameroon Highlights
Cameroon at a Glance
Currency
Exchange Rate (03/17/2006)
Per Capita GDP (2004 est.)
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1%
Petroleum, Bauxite, Iron Ore, Timber, Hydropower
Yaounde
Douala
16,380,005
Transportation
Distribution
Private sector/government
partnership
Private sector/government
partnership
528,000 customers
Southern Interconnected
Grid (SIG) includes
Douala and Yaound
Commercial Base
Northern Interconnected
Grid (NIG) three
northern provinces served
by Lagdo hydroelectric
plant and 14MW thermal
generation
Remote network 86
small thermal units
(24MW) support 31 small
distribution systems
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6%
3,000
2,000
2%
1,000
0
0%
1991
1993 1995
1997 1999
2001 2003
2005
-1,000
-2%
-2,000
4%
-4%
-3,000
-4,000
-6%
Energy demand
GDP
5,500
2,200
2,000
5,000
1,800
4,500
1,600
1,400
4,000
1,200
1,000
3,500
800
3,000
600
400
2,500
2,600
6,000
200
2,000
0
1991
1993 1995
1997 1999
2001 2003
2005
GDP
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ARSEL
Generating Concession
Transmission Concession
AES
Sonel
Medium Voltage
Customers
High/Special Voltage
Sales License
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Large
Customers
1974 -1992
1992 - 2001
2001 - 2005
2001 AES Sonel is
privatized, with AES
acquiring a 56% interest
2004 Limbe thermal
plant starts operation,
increasing system
reliability and providing
fuel diversity
2005 Launch of a
$450 MM capex
program to rehabilitate
and expand network
infrastructure and
refurbish aging
production facilities
NIG
Garoua
SIG
Lagdo
Ngaoundr
NIG
Mbakaou
Bamenda
Map
Bamendjin
Storage dam
Hydroelectric plant
Limb fuel oil plant
Songloulou
SIG
Concession area
Eda
Douala
Yaound
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Commercial
18%
Others
9%
3,095
2,811
2,573
Residential
28%
183
533
Residential
51%
(1)
Commercial
27%
Others
14%
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231
279
580
3,258
284
584
548
1,273
1,380
1,470
705
759
856
920
2002
2003
2004
2005
Industrial
Commercial
Residential
Other
Operational Excellence
Distribution losses
Transmission efficiency
Cash collection efficiency
Unserved energy rate
Safety Excellence
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10
Transmission Efficiency
T & D Reliability
Getting Better
48% Improvement in SAIDI
31.4%
30.9%
27.0%
24.4%
T &D Reliability
94.8%
94.4% 39% Improvement in SAIFI
2002
2002
2003
2003
2004
2004
2005
2005
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93.9%
2002
2002
2003
2003
94.1%
2004
2004
Jun-05
2005
11
T & D Reliability
48% Improvement in SAIDI
89.9%
86.3%
Getting Better
93.7%
3.8%
87.2%
3.85
T &D Reliability
39%3.9%
Improvement in SAIFI
3.9
2.9%
2.95
1.1%
1.15
2002
2002
2003
2003
2004
2004
2005 YTD
2005
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2002
2002
2003
2003
2004
2004
Jun-05
2005
12
2004
Nine Months
Ending
September 30,
2005
$203
$273
$221
$13
$33
$63
$8
$30
$54
Distributions
to AES Corporation
$2
$2
$1
Revenue
Gross Margin
Note: Information is presented on an AES basis and is unaudited. Certain intercompany transactions may not be eliminated.
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13
People Development
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Economic Development
4th largest company in
Cameroon in terms of
revenues
One of the biggest
investors, importers and
employers
AES activities
contributes to the growth
of the local banking
system
14
Strategic Issues
Revised and improved
concession agreement
Development of
infrastructure
Political instability
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15
Strategic Opportunities
Value
Enhancement
Program
Demand Growth
Projects
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Asset management
Maintenance work management
Reconstruction project management
Revenue management
16
Appendix - Assumptions
Forecasted financial information is based on certain material assumptions. Such
assumptions include, but are not limited to: 1) no unforeseen external events such as
wars, depressions, or economic or political disruptions occur; 2 ) businesses continue
to operate in a manner consistent with or better than prior operating performance,
including achievement of planned productivity improvements including benefits of
global sourcing, and in accordance with the provisions of their relevant contracts or
concessions; 3) new business opportunities are available to AES in sufficient quantity
so that AES can capture its historical market share; 4) no major disruptions or
discontinuities occur in GDP, foreign exchange rates, inflation or interest rates during
the forecast period; 5) negative factors do not combine to create highly negative lowprobability business situations; 6) business-specific risks as described in the
Companys SEC filings do not occur.
In addition, benefits from global sourcing include avoided costs, reduction in capital
project costs versus budgetary estimates, and projected savings based on assumed
spend volume which may or may not actually be achieved. These benefits will not be
fully reflected in the Companys consolidated financial results.
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Appendix - Definitions
Free Cash Flow - Net cash from operating activities less maintenance capital expenditures.
Maintenance capital expenditures reflect property additions less growth capital expenditures.
Lost Time Accident (LTA) - An incident in which the injured person is kept away from work beyond the
day of the incident.
Near Miss - An incident that occurred but did not result in any injury. In AES, we have expanded this
to include unsafe conditions that have been observed.
O&M - Operation and maintenance.
Reliability Centered Maintenance (RCM) - An integrated maintenance methodology that optimizes
among reactive, interval-based, condition-based, and proactive maintenance practices to take
advantage of their respective strengths in order to maximize facility and equipment reliability while
minimizing life-cycle costs.
Return on invested capital (ROIC) - Defined as net operating profit after tax (NOPAT) divided by
average capital. NOPAT is defined as income before tax and minority expense plus interest expense
less income taxes less tax benefit on interest expense at effective tax rate. Average capital is defined
as the average of beginning and ending total debt plus minority interest plus stockholders equity less
debt service reserves and other restricted deposits.
System Average Interruption Duration Index (SAIDI) - A measure of the cumulative duration of electric
service forced and sustained interruptions experienced by customers each year, excluding force
majeure events. SAIDI is calculated as the total number of customer minutes of sustained interruption
divided by the number of customers served.
System Average Interruption Frequency Index (SAIFI) - A measure of the number of outages per
customer per year. SAIFI is calculated by dividing the total number of customer-sustained
interruptions by the number of customers served.
1
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Quarter Ended
Year Ended
December 31,
2004
2003
Mar. 31,
2005
Jun. 30,
2005
Sep. 30,
2005
Nine Months
Ended
Sep. 30,
2005
$1,008
$991
$190
$170
$274
$634
46
13
--
--
1,054
1,004
195
170
274
639
242
116
37
--
39
11
--
13
--
13
242
127
50
--
52
1,296
1,131
197
220
274
691
(46)
(24)
(5)
(13)
--
(18)
$1,250
$1,107
$192
$207
$274
$673
Note: On the regional financial slides included subsequently in this presentation series, subsidiary distributions to parent, which exclude returns of
capital and project financing proceeds, have been referred to as Distributions to AES Corporation.
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