AESAndres-Itabo4Q11

Andres Dominicana and Itabo Dominicana, Earning Release - 1 -

4Q11 Relevant Results

AES Andres B.V. and Subsidiary and Dominican Power Partners and Subsidiary announced a Combined Net Income of US$0.7 million in the fourth quarter 2011 Santo Domingo, Dominican Republic, March 16th, 2012 – Andres-DPP and Itabo announced today results for the fourth quarter 2011. All operating and financial information, except where otherwise specified, is expressed in the International Financial Reporting Standards, as of any date of determination, or “IFRS”. These figures are not audited.

For Andres-DPP the revenues increased 20.1% to US$112.7 million in the fourth quarter 2011 compared to the same period of 2010. Meanwhile in the period ended in December 2011, Revenues increased 18.0% compared to the same period of the previous year. Net Income was US$0.7 million for the fourth quarter of 2011 and the accumulated Net Income for 2011 was US$84.4 million against US$53.8 million for the same period 2010.

(*) Amounts revised for 2010 due to the change in the accounting principles from USGAAP to IFRS.

(**) Net Income includes interest expenses of US$9.6 million in 4Q11 and 4Q10, related to interest under a subordinated intercompany loan under which AES made its capital injections to finance the development and construction of Andres. AES views this loan as an equity investment and the respective interests are a restricted payment under the indenture.

Itabo Net Loss decreased to US$3.3 million in the fourth quarter 2011 For Itabo, the revenues increased 37.2% in the fourth quarter 2011 compared to the same period of 2010 and in the accumulated results for the period ending in December 2011 increased 24.1% compared to the same period of the previous year. Net Loss decreased to US$3.3 million for the fourth quarter of 2011 and the accumulated Net loss decreased to US$5.9 million from a Net Loss of US$40.2 million for the same period 2010.

* Amounts revised for 2010 due to the change in the accounting principles from USGAAP to IFRS.

Fourth Quarter 2011 Relevant Results Santo Domingo, Dominican Republic March 16th, 2012

Contact: Yandery Teran

Investor Relations Director (1) (809) 955-2223

[email protected]

Inside this report:

Page

External Factors 2

Analysis of Andres-DPP Combined Financial Results 2

Analysis of Itabo’s Consolidated Financial Results 4

Financial Debt Summary 5

Dividends 6

Liquidity 6

Operational Results 7

Operational Developments 8

Safety Indicators 8

Environmental Matters 9

Financial Statements 10

Glossary of Key Terms 17

4Q11 4Q10* (Millions of US$) 12M11 12M10*69.4 50.6 Revenues 247.6 199.565.8 53.1 Operating costs and expenses 244.9 229.43.6 (2.5) Operating (Loss) income 2.7 (29.9)

5.2% -4.9% Operating (Loss) income margin 1.1% -15.0%

(3.3) (12.2) Net (loss) Income (5.9) (40.2)

31.4 25.9Net Cash Provided by Operating Activities 13.2 43.3

4Q11 4Q10 * (Millions of US$) 12M11 12M10 *112.7 93.8 Revenues 444.4 376.792.6 63.7 Operating costs and expenses 288.4 241.320.1 30.1 Operating income 156.0 135.4

17.8% 32.1% Operating income margin 35.1% 35.9%

0.7 0.7 Net Income (**) 84.4 53.8

9.9 38.3Net Cash Provided by Operating Activities 62.8 93.0



External Factors1 Dominican Republic’s GDP grew 4.2% as of

September 2011.

Inflation stood at 7.76% at the end of December 2011.

The exchange rate as of December 31st, 2011 was RD$38.81 per US dollar (Ask) and RD$38.71 per US dollar (Bid).

Average Nymex Henry Hub natural gas prices were US$3.47 per MMBtu for the fourth quarter 2011, with a peak of US$3.93 per MMBtu and a low of US$2.99 per MMBtu. 2

Average Coal prices were US$4.05 per MMBtu for the fourth quarter 2011, with a peak of US$4.32 per MMBtu and a low of US$3.87 per MMBtu.

Total electricity demand as of December 31st, 2011 reached 12,212.9 GWh, an increase of 2.80% versus the same period 2010.

Analysis of Andres-DPP Combined3 Financial Results (In IFRS) For Andres-DPP, the Revenues increased 20.1% to US$112.7 million in the fourth quarter 2011 compared to the same period of 2010. This result was mainly driven by: i) higher spot sales by US$11.4 million, derived of higher volume, prices and energy production; (ii) the other sales increased around US$5.9 million due to the increment in natural gas sales; and, (iii) US$1.6 million of higher contracted sales, basically to EDEEste (since its contracted capacity increased from 50MW to 75MW since September, 2011) and to Falconbrige, partially offset for the expiration of short-term contracts with DISCOS EDENorte and EDESur that were active during 2010.

As of December 31st, 2011, Revenues totaled US$444.4 million, an increase of 18.0% compared to the same period of 2010. This increase was mainly a net result of: (i) higher spot sales by US$64.0 million, due to higher energy volume and spot prices; (ii) lower contracted energy sales by US$14.3 million; and, (ii) higher other sales by US$18.0 million mainly from sales of natural gas since in February 2010 Andres started the operation of the liquefied natural gas loading terminal, expanding the use of this fuel in the Dominican Republic.

Andres-DPP’s Revenues consist of the following:


For Andres-DPP the Operating Costs and Expenses increased 45.4%, in the fourth quarter of 2011 compared to the same period 2010, from US$63.7 million to US$92.6 million. This variance was principally because higher cost of sales by US$28.9 million due to higher generation and the related increase in LNG consumption (with higher LNG average cost) and higher spot capacity prices.

Operating Costs and Expenses as of December 31st, 2011, increased 19.5% to US$288.4 million compared to the same period in 2010. This variance was mainly caused by: (i) higher cost of sales by US$44.2 million derived from higher generation, the related increase in LNG consumption (DPP was generating as base load power plant and the natural gas market has been

1 Source: Dominican Central Bank, Coordinating Body and FOB, 6300 kcal/kg Puerto Bolivar, Platts International Coal Report. 2 Pricing under the BP Contract is at a premium to the Henry Hub natural gas price per MMbtu on the NYMEX Index. 3 The accompanying combined financial results include the accounts of Andres, DPP and its subsidiary Andres Dominicana.LTD. Intercompany balances and transactions have been eliminated in these combined financial statements.

3.73

4.65 4.05

10.97

14.74

14.69

3.97

4.383.47

0

2

4

6

8

10

12

14

16

4Q10 1Q11 2Q11 3Q11 4Q11

US$

/MM

BTU

Coal

Fuel-Oil #6

Coal, Natural Gas and Fuel-Oil #6Price Evolution

Natural Gas

4Q11 4Q10* Var% (Millions of US$) 12M11 12M10* Var% 72.0 70.4 2.3 Electricity sales – Contracts 278.9 293.2 (4.9) 30.8 19.4 58.8 Electricity sales – spot market 139.3 75.3 85.0 9.9 4.0 147.5 Natural Gas Sales & Other Sales 26.2 8.2 219.5

112.7 93.8 20.1 Total Revenues 444.4 376.7 18.0



growing) combined with higher LNG prices and higher spot capacity prices; and, (ii) higher operating, maintenance and general expenses by US$3.3 million.

Andres-DPP’s operating costs and expenses consist of the following: (*) Amounts revised for 2010 due to the change in the accounting principles from USGAAP to IFRS Andres- DPP total Other Expenses decreased to US$9.4 million in the fourth quarter 2011 from US$24.2 million in the same period of 2010. This positive result was mainly a net function of: (i) higher other income by US$11.7 million since in 2010 the company booked the premium paid to Bondholders due to the prepayment of AES Dominicana Energia Finance Senior Notes for US$156 million; (ii) lower net financial interest expenses by US$5.9 million since in 2010 converged a portion of the US$156 million AES Dominicana Energia Finance Senior Notes due 2015 and the issuance from AES Andres Dominicana of US$167.5 million due 2020, besides in 2010 it was adjusted the deferred financing cost related to the previous bond; (iii) higher foreign currency loss by US$1.8 million; and, (iv) lower net commercial interest income by US$1.0 million. As of December 31st, 2011, Net Other Expenses decreased to US$32.4 million, as compared to total Net Other Expenses in the same period of 2010 of US$61.0 million. This decrease was mainly a net function of: (i) higher other income by US$24.3 million; (ii) lower net financial interest expenses by US$6.4 million due to lower debt and interest rate when compared with 2010, besides in 2010 it was adjusted the deferred financing cost related to the previous bond; and, (iii) higher foreign currency loss by US$2.3 million. Andres-DPP Other (Expenses) Income consists of the following:


(**) Interest expenses are those generated by the subordinated intercompany loan under which AES made its capital injections to finance the development and construction of Andres.

For Andres-DPP, Net Cash Provided by Operating Activities was US$9.9 million for the fourth quarter 2011, compared to a Net Cash Provided by Operating Activities of US$38.3 million in the same period of 2010. This negative variation was mainly a net result of the following: (i) negative impact from interest paid by US$16.2 million, since the intercompany interest corresponding to the last semester of 2010 was paid in the first semester 2011; (ii) negative adjustments by US$15.9 million, reconciling net income to net cash provided by operations; (iii) positive impact as result of lower account receivables by US$9.3 million; (iv) negative impact due to higher other assets by US$3.3 million; and, (v) negative impact from lower account payables by US$2.3 million. Net Cash Provided by Operating Activities as of December 31st, 2011 was US$62.8 million compared to US$93.1 million for the same period in 2010. This negative variation was primarily the result of: (i) higher net interest paid by US$35.7 million, basically from the intercompany loan, since during 2011 the company paid interest corresponding to the second semester 2010 and for the full year 2011, meanwhile during the same period 2010, the company only paid the equivalent amount for the first semester 2010; (ii) negative impact due to higher account receivables by US$34.8 million, basically due to higher Days of Sales Outstanding (DOS) and higher sales; (iii) higher net income by US$30.6 million; (iv) positive impact from higher income tax expenses by US$5.3 million; and, (v) positive impact due to higher account payables by US$4.4 million. Free Cash Flow (a non-IFRS financial measure defined as net cash from operating activities less capital expenditure defined in the accompanying financial statement as Additions to Property, Plant and Equipment and advances to suppliers in purchases of PP&E) was net cash provided by US$4.1 million for the fourth quarter 2011. During this period, there were additions to property, plant and equipment and advances to suppliers of US$5.8 million.

4Q11 4Q10* Var% (Millions of US$) 12M11 12M10* Var%

75.7 46.8 61.8 Cost of electricity sales- fuel & electricity purchases 225.6 181.4 24.410.3 9.5 8.4 Operating, maintenance and general expenses 36.7 33.4 9.96.6 7.4 (10.8) Depreciation 26.1 26.5 (1.5)

92.6 63.7 45.4 Total Operating Cost and Expenses 288.4 241.3 19.5

4Q11 4Q10 * Var% (Millions of US$) 12M11 12M10 * Var%(3.7) (9.6) (61.5) Interest (expense) – financial - net (16.5) (22.9) (27.9)3.6 4.6 (21.7) Interest income – commercial and others-net 11.1 10.8 2.8

(9.6) (9.6) 0.0 Subordinated intercompany loan interest expense (**) (38.2) (38.1) 0.31.2 (10.5) n/a Other Income (expenses) 12.3 (12.0) n/a

(0.9) 0.9 (200.0) Foreign currency gain (loss) (1.1) 1.2 (191.7)(9.4) (24.2) (61.2) Total Other (Expenses) (32.4) (61.0) (46.9)



As of December 31st, 2011, the Free Cash Flow was net cash provided of US$33.5 million and there were additions to property, plant and equipment and advances to suppliers by US$29.3 million.

Analysis of Itabo’s Consolidated4 Financial Results (In IFRS) For Itabo the Revenues increased 37.2% to US$69.4 million in the fourth quarter 2011 compared to the same period of 2010. This result was mainly driven by US$18.9 million of higher electricity sales that resulted from higher contract prices that were indexed by higher average coal market prices and higher spot energy prices.

As of December 31st, 2011, Revenues totaled US$247.6 million, an increase of 24.1% compared to the same period of 2010. This increase was mainly a result of higher electricity sales by US$48.5 million due to higher contracted prices.

Itabo’s Revenues consist of the following:

For Itabo the Operating Costs and Expenses increased 23.9% to US$65.8 million in the fourth quarter of 2011 compared to the same period of 2010. This variance was principally a result of: (i) higher electricity purchases by US$8.5 million derived from higher spot prices; (ii) higher coal cost by US$1.8 million due to higher generation and average coal prices; and, (iii) higher operating, maintenance and general expenses by US$2.5 million, basically from the 28 days major programmed maintenance performed in Unit II.

As of December 31st, 2011, Operating Costs and Expenses increased 6.8% to US$244.9 million compared to same period of 2010. This variation was mainly caused by higher fuel cost for US$18.6 million basically due to higher coal cost and higher generation.

Itabo’s Operating Costs and Expenses consist of the following

*Amounts revised for 2010 due to the change in the accounting principles from USGAAP to IFRS. For Itabo the total Other Expenses decreased to US$6.1 million in the fourth quarter 2011 compared to US$13.8 million in the same period of 2010. This variation was primarily attributable to: (i) lower other expenses by US$4.5 million basically due to in 2010 the company booked the premium paid to Bondholders due to the prepayment of Itabo Finance Senior Notes for US$125 million due 2013; and, (ii) lower net financial interest expenses by US$2.4 million basically due to in the 2010 it was included the write-off of the deferred financing cost of the Senior Notes early redeemed.

As of December 31st, 2011, Total Other Expenses decreased to US$15.0 million from US$22.9 million in the same period of 2010. This variance was the net result of: (i) lower financial interest expenses by US$4.1 million due to the reduction of the international debt from US$125 million to US$116.4 million with a lower interest rate (10.875% Vs 9.5%); (ii) lower other expenses by US$1.9 million basically due to during 2010 the company paid a premium to Bondholders, partially offset for an increment assets disposal during 2011; and, (iii) higher net commercial interest income by US$1.0 million.

4 The accompanying consolidated financial results include the accounts of Itabo, and its subsidiary Itabo Dominicana, LTD. Intercompany balances and transactions have been eliminated in these consolidated financial statements.

4Q11 4Q10 Var% (Millions of US$) 12M11 12M10 Var%69.1 50.2 37.6 Electricity sales 246.7 198.2 24.50.3 0.4 (25.0) Other revenues 0.9 1.3 (30.8)

69.4 50.6 37.2 Total Revenues 247.6 199.5 24.1

4Q11 4Q10 * Var% (Millions of US$) 12M11 12M10 * Var%

47.5 37.2 27.7 Cost of Revenues 187.2 171.0 9.512.5 10.0 25.0 Operating, maintenance and general expenses 34.8 35.0 (0.6)5.7 5.8 (1.7) Depreciation 22.5 23.0 (2.2)0.1 0.1 0.0 Amortization of contracts 0.4 0.4 0.0

65.8 53.1 23.9 Total Operating Cost and Expenses 244.9 229.4 6.8



Itabo’s Other Expenses consists of the following:

*Amounts revised for 2010 due to the change in the accounting principles from USGAAP to IFRS

For Itabo the Net Cash Provided by Operating Activities was US$31.4 million for the fourth quarter 2011 compared to a Net Cash Provided by Operating Activities of US$25.9 million in the same period of 2010, resulting in a positive variation of US$5.5 million. This positive variance was mainly a net result of: (i) lower net loss by US$8.9 million; (ii) negative impact by US$8.1 million from the premium on redemption of bonds in 2010; (iii) lower interest paid by US$5.2 million; (iv) negative impact from lower account payables by US$4.9 million basically from energy market transactions; (v) positive impact due to lower account receivables by US$3.3 million since the Government paid all the outstanding bills up to October 2011; and, (vi) an impact of US$1.1 million from positive adjustments reconciling net loss to net cash provided by operation activities.

As of December 31st, 2011, the Net Cash Provided by Operating Activities was US$13.2 million compared to a Net Cash Provided by Operating Activities of US$43.3 million in the same period of 2010. This negative variation by US$30.1 million was primarily the net result of: (i) negative impact due to higher account receivables by US$49.2 million due to higher Day of Sales Outstanding (2011-72 DOS and 2010- 62 DOS) and higher sales; (ii) lower net loss by US$34.3 million; (iii) negative impact by US$11.8 million due to lower account payables; (iv) US$7.0 million of negative adjustments, reconciling net loss to net cash provided by operating activities; and, (v) positive impact of US$3.6 million from interest paid.

Free Cash Flow (a non-IFRS financial measure defined as net cash from operating activities less capital expenditures defined in the accompanying financial statement as additions to Property, Plant and Equipment and advances to suppliers in purchases of PP&E) was a net cash provided by US$17.2 million for the fourth quarter 2011. During this period there were additions to property, plant and equipment and advances to suppliers by US$14.2 million.

As December 31st, 2011, the Free Cash Flow was net cash used by US$16.7 million. There were additions to property, plant and equipment by US$29.9 million.

Financial Debt Summary On November 12th, Itabo and Andres paid interests on international bonds dated November 12, 2010 for US$5.5 million and

US$8.0 million, respectively.

On November 19th, Andres paid interests on its Intercompany loan for US$19.3 million.

On Dec. 20th, 2011, Standard & Poor's Ratings Services raised the ratings of AES Andres Dominicana to 'B' from 'B-', with a “stable” outlook and revised the outlook of Empresa Generadora de Electricidad Itabo S.A. (Itabo) to “stable” from “negative”. At the same time, affirmed the 'B-' ratings on the company.

On January 20th, Fitch Ratings affirmed the International ratings for AES Andres Dominicana and Itabo Dominicana in "B" outlook "positive". The national ratings were affirmed “A- (dom)” in Andres and Itabo.

4Q11 4Q10 * Var% (Millions of US$) 12M11 12M10 * Var%(2.7) (5.1) (47.1) Interest (expenses)- financial- net (11.6) (15.7) (26.1)0.2 0.1 100.0 Interest income- commercial- net 6.3 5.3 18.9

(4.2) (8.7) (51.7) Other (expense) - net (10.3) (12.2) (15.6)0.6 (0.1) n/a Foreign Currency Income (loss) 0.6 (0.3) n/a

(6.1) (13.8) (55.8) Total Other (Expenses) (15.0) (22.9) (34.5)



The following tables show composition of financial debt:

Dividends In November, Andres made a dividend payment for a net amount of US$35.9 million.

Liquidity Collections

During the fourth quarter 2011 the average collection rate for Andres- DPP was 146% against 131% in the same period of 2010 and for Itabo 144% against 142%. The increase is related to the higher collection received on October by US$47.9 million for late receivables up to July (DPP: US$19.1 million and Itabo: US$28.8 million), and on December by US$91.1 million corresponding to the pending invoices up to October (Itabo US$53.5 million, DPP-US$30.8 million and Andres- US$6.8 million).

YTD December 31st, 2011, the average collection rate for Andres-DPP was 102% against 105% in the same period 2010 and for Itabo 96% against 111%, as of December 2010; the DR Government made efforts to comply with the IMF agreement guidelines.

Currently Andres accounts receivables have 33 days sales outstanding (DSO), 61 DSO for DPP and 72 DSO for Itabo compared to 24, 63 and 66 DSO, respectively during the same period of 2010.

(*) (1) After tax rates. (2) The Notes effective rate includes the interest income accrued by the interest debt reserve.

Average Collections Rate

Days Sales Outstanding (DSO)

Andres-DPP Itabo Financial Debt Dec-11 Dec-10(expressed in millions of US$)Local Currency - - Foreign Currency 168 168Total Debt 168 168

Fixed Rate 100% 100%Variable Rate 0% 0%Short Term 0% 0%Long Term 100% 100%Financing Cost (*) 10.56% 10.56%

Average Life (years) 9 10

Financial Debt Dec-11 Dec-10(expressed in millions of US$)Local Currency - - Foreign Currency 131 131Total Debt 131 131

Fixed Rate 100% 100%Variable Rate 0% 0%Short Term 0% 0%Long Term 100% 100%Financing Cost (*) 10.21% 10.21%

Average Life (years) 8 9

146%83%111%

70%131% 144%104%

50%

142%

76%

4Q10 1Q11 2Q11 3Q11 4Q11

Andres - DPP Itabo

3324

7369

72

147

107 66

181

111

63 61

2008 2009 2010 2011

AES Andres Itabo DPP

Rating Agency Market Rating OutlookFitch Ratings (Andres-DPP) International Senior Notes 2020 B PositiveFitch Ratings (Itabo) International Senior Notes 2020 B PositiveStandard & Poor's (Andres-DPP) International Senior Notes 2020 B StableStandard & Poor's (Itabo) International Senior Notes 2020 B- StableFitch Dominicana (Itabo) Local Corporate Bonds 2013 A- (dom)



Operational Results Andres-DPP:

In the fourth quarter of 2011, the Combined Net Generation increased 2.9% relative to the fourth quarter of 2010, from 868 GWh in 4Q10 to 893 GWh in 4Q11. Total Energy Sold during 4Q11 was 893 GWh, an increase of 2.4% when compared to 4Q10, basically from higher quantity sold in the spot market due to higher generation.

DPP’s Firm Capacity increased to an average of 55 MW (111.5%), during the fourth quarter 2011, as a result of higher availability since the operational improvements performed on its units. The EAF increased to 100% since its units have been working as based load plants since 2010 and its EFOR was 0 for this quarter.

As of December 31st, 2011, Combined Net Generation was 3,379 GWh, an increase of 2.5% compared to the same period of 2010. During both periods, the units have been dispatched as base-load units due to the competitiveness of gas prices. The Combined Energy Sold increased 2.6% to 3,398 GWh, basically due higher generation and higher demand from NRU (including the mining company Falconbridge) and EDEEste contract (the contracted capacity increased to 85MW), partially offset for lower energy sold to EDENorte y EDESUR (during 2010, the companies had energy contracts with those DISCOS).

DPP’s Firm Capacity increased to an average of 56MW, as of December 31st 2011, from 23MW during 2010, as a result of higher availability since the operational improvements performed on its units. Besides the EAF has increased to 95.0% since its units has been working as based load plants since 2010 and although Los Mina V and VI were put out of service due to major planned maintenances.

The following table presents selected operational information for each of the periods indicated:

Itabo:

During the fourth quarter 2011, the Net Generation was 405 GWh, an increase of 1.5% with respect to the same period of 2010. The EAF decreased to 78% due to the major maintenance of the Unit II and the EFOR increased to 3.4% from 2% due to boiler tubes leaks.

As of December 31st, 2011, the Net Generation was 1,507 GWh, an increase of 10.1% against the same period 2010 primarily due during the last semester 2010, the Unit I had a technical limitation. The EFOR increased to 4.1% due to boiler tubes leaks.

As of Dec. 31st, 2011 Andres DPP AggregateInstalled capacity (MW) 319 236 555 Power Generation Units 1 2 3 Effective capacity (MW) 304 236 540 Contracted capacity (MW) 211 210 421

4Q11 4Q10 Var.% Operating Data 12M11 12M10 Var.%

911 881 3.4 Gross generation GWh 3,433 3,346 2.6 (18) (13) 38.5 Internal consumption GWh (54) (51) 5.9

893 868 2.9 Net Generation GWh 3,379 3,295 2.5

893 872 2.4 Total Energy Sold (*) GWh 3,398 3,312 2.6 281 276 1.8 Andres' Firm Capacity MW 281 260 8.1

7,663 7,764 (1.3) Andres Heat Rate Btu/KWh 7,720 7,660 0.8 100.0 95.0 5.3 Andres EAF % 93.0 96.0 (3.1)

0.0 1.3 (100.0) Andres EFOR % 0.3 0.4 (25.0) 55 26 111.5 DPP's Firm Capacity MW 56 23 143.5

100.0 95.0 5.3 DPP EAF % 95.0 84 13.1 0.0 0.0 0.0 DPP EFOR % 0.12 0.3 (60.0)



The following table presents selected operational information for each of the periods indicated:

Operational Developments During the fourth quarter 2011, Andres received three vessels with 9.0 TBtu of natural gas, including an additional cargo

(from the quantity established in the LNG contract) bought in December.

Itabo received four coal vessels containing 180,675 MT.

Programmed Maintenances:

- Itabo II, since October 1st, 2011 to October 28th, 2011.

- Andres, since January 17th, 2012 to February 3rd, 2012.

- Los Mina V, since January 27th, 2012 to February 3rd, 2012.

On January 28th, the LNG Terminal was put out of service to install a third offloading and re-gasification train, which will increase the terminal’s capacity to cover the current and future natural gas demand. The LNG terminal was put back on service on January 31st. During this period, Los Mina VI was disconnected, to facilitate these works and reconnected on February 1st.

Other Relevant Information On November 30th, AES Dominicana with other large companies in the Dominican Republic was recognized for sending the

annual report complying with the 10 principles of the ONU.

AES Dominicana for the third year in a row has been awarded with the 1st place of the companies most admired in the energy sector and the fourth best company to work in the country.

On January 10th, Jesús Bolinaga was appointed as the new President of AES Dominicana.

Safety Indicators During the fourth quarter, Andres and DPP did not have Lost Time Incidents (LTI) or fatalities. As of December 31st this

represents 723,489 AES people and contractors’ incidents free hours.

In 2011, Itabo had a Lost Time Incident (LTI) during Unit I major maintenance.

During 2011, 14,000 man hours invested in safety training, including AES people and contractors.

Safety drills were performed at Itabo, Andres and DPP.

During 2011, the Safety and Health Program was certified by the Ministry of Labor, in order to fulfill the requirements of 522-06 Regulation.

4Q11 4Q10 Var.% 12M11 12M10 Var.%

443 439 0.9 Gross generation GWh 1,655 1,516 9.2 (38) (40) (5.0) Internal consumption GWh (148) (147) 0.7 405 399 1.5 Net Generation GWh 1,507 1,369 10.1 463 441 5.0 Total Energy Sold GWh 1,780 1,790 (0.6) 226 226 0.0 Firm Capacity MW 226 226 0.0

11,007 10,714 2.7 Heat Rate Btu/KWh 11,154 10,898 2.3 78 79 (1.3) EAF % 72 73 (1.4)

3.4 2 70.0 EFOR % 4.1 2 105.0

As of Dec. 31st, 2011Installed capacity (MW) 260Power Generation Units 2Effective capacity (MW) 260



During 2011, emergency plans were revised to comply with AES Corp Safety Standards.

Environmental Matters During the fourth quarter 2011, Andres, DPP and Itabo have complied with all environmental requirements of AES

Corporation and the Dominican laws.

During the quarter, AES Dominicana postulated projects in the National Cleaner Production Prize promoted by the Environmental Ministry.



(*) The 2010 amounts presented in the 4Q10 report were revised due to the change in the accounting principles from USGAAP to IFRS.

(**) Interest expenses are those generated by the subordinated intercompany loan under which AES made its capital injections to finance the development and construction of Andres.

(***)Net Income includes interest expenses of US$9.6 million in 4Q11 and 4Q10, related to interest under a subordinated intercompany loan under which AES made its capital injections to finance the development and construction of Andres. AES views this loan as an equity investment and the respective interests are a restricted payment under the indenture.

The results presented in this report have not been audited and were prepared in Dollars in conformity with the International Financial Reporting Standards, as of any date of determination, or “IFRS.”

AES Andres B. V. and subsidiary, andDominican Power Partners and subsidiary(Indirect Wholly-Owned Subsidiaries of The AES Corporation)UNAUDITED COMBINED STATEMENTS OF INCOME(Expressed in thousandsUS$)

4Q11 4Q10 * 12M11 12M10*

REVENUES

72,018 70,364 Electricity sales – contracts 278,858 293,153 30,749 19,395 Electricity sales – spot market 139,326 75,335

9,932 4,024 Natural gas sales 26,150 8,198 13 13 Other sales 52 52

112,712 93,796 Total revenues 444,386 376,738

OPERATING COSTS AND EXPENSES

(66,630) (42,298) Cost of sales – electricity purchases and fuel costs used for generation (201,994) (175,253) (9,063) (4,535) Cost of sales – fuel and fuel related costs purchased for resale (23,636) (6,172)

(10,277) (9,512) Operating, maintenance and general expenses (36,695) (33,413) (6,624) (7,419) Depreciation (26,068) (26,486)

(92,594) (63,764) Total operating costs and expenses (288,393) (241,324)

20,118 30,032 OPERATING INCOME 155,993 135,414

OTHER INCOME (LOSS) (135) (5,013) Interest expense – net (5,460) (12,098)

(9,606) (9,635) Intercompany loan interest expense (**) (38,224) (38,224) - - Investment Asset Impairment Expense - -

1,223 (10,473) Other income (expense) 12,372 (11,935) (866) 944 Exchange (loss) gain (1,121) 1,275

10,734 5,855 INCOME BEFORE TAXES 123,560 74,432

(10,008) (5,153) Income tax (39,105) (20,609)

726 702 NET INCOME (***) 84,455 53,823




AES Andres B. V. and subsidiary, andDominican Power Partners and subsidiary(Indirect Wholly-Owned Subsidiaries of The AES Corporation)UNAUDITED COMBINED STATEMENTS OF FINANCIAL POSITION(Expressed in thousands US$)

Dec. 31st, 2011 Dec. 31st, 2010

ASSETS

CURRENT ASSETSCash and cash equivalents 131,130 119,652 Accounts receivables 92,254 75,541 Accounts receivable – related parties 52,670 62,115 Inventories 19,326 18,338 Other financial assets 5,000 - Other assets 11,698 6,201

Total current assets 312,078 281,847

PROPERTY, PLANT AND EQUIPMENT Land 15,784 15,784 Property, plant and equipment 706,689 688,335 Less accumulated depreciation (206,309) (186,549)

Total Property, plant and equipment 516,164 517,570

OTHER ASSETS Accounts receivables non curent 19,774 22,465 Debt service reserves 7,959 7,959 Other financial assets 17,297 20,508 Other assets 7,133 3,007 Total other assets 52,163 53,939

TOTAL ASSETS 880,405 853,356

LIABILITIES AND SHAREHOLDER'S EQUITY

CURRENT LIABILITIES

Accounts payable 18,113 22,108 Related parties 5,303 5,955 Interest related parties - 19,269 Interest payable 2,136 2,289 Income tax payable 22,867 9,112 Derivative current 1,063 -

Total current liabilities 49,482 58,733

LONG TERM LIABILITIESDeferred income tax 55,731 69,428 Intercompany loan 413,153 413,153 Notes payable 164,012 163,773 Derivative non current 3,148 860 Other non current liabilities 171 1,369

Total long term liabilities 636,215 648,583

SHAREHOLDER'S EQUITY

Common stock 15,019 15,019 Contributed capital 109,236 109,204 Additional paid–in capital 662 579 Accumulated other comprehensive loss (36) (37) Restricted retained earnings 36,852 36,852 Accumulated (deficit) earnings 32,975 (15,577)

Total shareholder's equity 194,708 146,040 TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY 880,405 853,356





AES Andres B. V. and subsidiary, andDominican Power Partners and Subsidiary(Indirect Wholly-Owned Subsidiaries of The AES Corporation)UNAUDITED COMBINED STATEMENTS OF CASH FLOWS(Expressed in thousands US$)

4Q11 4Q10* 12M11 12M10*

CASH FLOW FROM OPERATING ACTIVITIES:

726 702 Net income 84,455 53,823 Adjustments to reconcile net income to net cash used in

operating activities:6,624 7,419 Depreciation and amortization 26,068 26,486 6,635 1,766 Derivative instruments 10,349 2,049

10,008 5,153 Income tax expense 39,105 20,609 - 10,052 Loss (gain) on early extinguishment of debt - 10,052 103 (381) Loss on asset disposal 2,923 1,988 - - Gain on sale of investments (39) -

(317) (13) Long term compensation 253 279 38,224 38,224 Subordinated intercompany loan interest expense 38,224 38,224

(28,482) (23,576) Interest expense – net 5,460 12,098 304 (687) Foreign exchange loss (gain) 422 (1,126)

45,134 33,968 (Increase) decrease in accounts receivable (6,769) 12,677 (22,259) (16,755) (Increase) decrease in accounts receivable – related parties (14,810) 571

2,930 (1,686) (Increase) decrease in other receivable - - (522) 475 Decrease (increase) in other receivable – related parties - - 716 431 (Increase) decrease in inventories (1,053) 954

3,116 4,200 (Increase) in prepaid insurance - - - 783 Increase in deferred tax assets

(7,899) (4,611) (Increase) in other assets (7,899) (4,611) (16,026) (9,021) (Decrease) increase in accounts payable and accrued liabilities (23,088) 8,424 15,583 10,891 Increase (decrease) in accounts payable – related parties 4,335 (31,529) (1,393) (757) (Decrease) increase in accrued and other liabilities (1,299) 992 53,206 56,576 Cash generated from operations 156,638 151,960

(9,611) (1,728) Interest received 4,536 5,883 (28,759) (12,591) Interest paid (74,235) (38,530) (4,863) (3,918) Income taxes paid (24,130) (26,253) 9,974 38,339 Net cash from operating activities 62,809 93,060

CASH FLOW FROM INVESTING ACTIVITIES:(5,757) (866) Additions to property, plant and equipment (29,287) (12,042)

- 788 Advances to suppliers in purchase of PP&E - - 2 - (Increase) decrease in restricted cash (5,146) 1,200

10,237 10,920 Sale of short term investment 10,596 10,920 - (1,169) Purchase of short term investment (10,579) (1,169) - (19,269) Loans made to related parties 19,269 (19,269) - (7,959) Debt service reserve - (7,959) 39 - Proceeds from the sales of assets (+) 39 -

4,521 (17,555) Net cash (used) provided by investing activities (15,108) (28,319)

CASH FLOW FROM FINANCING ACTIVITIES:

- 167,560 New borrowings – credit agreement - 167,560 - (166,052) Principal payments – notes payable - (171,052) - - Principal payments -

(35,903) - Dividend payment (35,903) - (314) (3,428) Financing costs payments (314) (3,428)

(6) - Repayments of capital lease obligations (6) - (36,223) (1,920) Net cash (used in) provided by financing activities (36,223) (6,920)

- - EFFECT OF EXCHANGE RATE CHANGES ON CASH - -

(21,728) 18,864 NET INCREASE IN CASH 11,478 57,821 152,858 100,788 CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 119,652 61,831

131,130 119,652 CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 131,130 119,652





EMPRESA GENERADORA DE ELECTRICIDAD ITABO, S. A. AND SUBSIDIARY(An indirectly subsidiary of The AES Corporation)CONSOLIDATED STATEMENTS OF INCOME(Amounts expressed in thousands of US dollars)

4Q11 4Q10 * 12M11 12M10*

69,438 50,612 Revenues 247,619 199,485

Operating costs and expenses

(47,529) (37,170) Cost of revenues (187,216) (170,896) (12,520) (10,067) Operating, maintenance and general expenses (34,799) (35,051) (5,663) (5,749) Depreciation (22,468) (22,998)

(118) (118) Amortization of contracts (471) (471) (65,830) (53,104) Total operating costs and expenses (244,954) (229,416)

3,608 (2,492) Operating Income (loss) 2,665 (29,931)

Other income (expense) (2,488) (5,020) Interest (expense), net (5,330) (10,452) (4,281) (8,719) Other (expenses) – net (10,340) (12,233)

639 (85) Exchange gain (loss), net 674 (284)

(2,522) (16,316) (12,331) (52,900)

(766) 4,079 Income tax 6,368 12,661

(3,288) (12,237) Net Loss (5,963) (40,239)

(Loss) before income taxes




EMPRESA GENERADORA DE ELECTRICIDAD ITABO, S. A. AND SUBSIDIARY(An indirectly subsidiary of The AES Corporation)CONSOLIDATED BALANCE SHEETS(Amounts expressed in thousands of US dollars)

Dec. 31st, 2011 Dec. 31st, 2010ASSETS

CURRENT ASSETSCash and cash equivalents 52,892 71,482 Accounts Receivables 8,068 3,473 Accounts Receivables- Related Parties 71,509 58,029 Inventories 27,028 22,185 Prepaid income tax 19,179 20,888 Other non finance assets 1,365 2,089

Total current assets 180,041 178,146

Non- Current AssetsProperty, plant and equipment 349,142 349,041 Account receivable related parties 28,727 32,690 Long-Term Investment 323 267 Other Finance Assets 5,531 5,531 Other non finance assets 6,146 7,618

Total Non- Current Assets 389,869 395,147

TOTAL ASSETS 569,910 573,293

Liabilities and Stockholder's Equity

Current LiabilitiesAccounts payable: 23,788 22,527 Accounts payable- Related Party 51,597 42,893 Accrued expenses and other liabilities 3,837 3,304

Total current liabilities 79,222 68,724

Non Current LiabilititesNotes payable 128,792 128,564 Deferred income tax 33,855 40,301 Other non-current liabilities 19 16

Total non current liabilities 162,666 168,881

Equity

Common stock 355,556 355,556 Additional paid in capital 229 207 Accumulated deficit (120,512) (112,824) Restricted retained earnings 92,749 92,749

Total shareholders' equity 328,022 335,688

Total Liabilities and Equity 569,910 573,293





EMPRESA GENERADORA DE ELECTRICIDAD ITABO, S. A. AND SUBSIDIARY(An indirectly subsidiary of The AES Corporation)CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Amounts expressed in thousands of US dollars)

4Q11 4Q10* 12M11 12M10*

CASH FLOWS FORM OPERATING ACTIVITIES: (3,288) (12,237) Net loss (5,963) (40,239)

Adjustments to reconcile net loss to net cash (used in) used in operating activities:

5,663 5,749 Depreciation and amortization 22,468 22,998 118 118 Amortization of contracts 471 471 766 (4,079) Income tax (6,368) (12,661) - 8,095 Premium on redemption of bonds - 8,095 23 54 Long-term compensation 39 51

3,840 4,629 Loss on asset disposal 9,849 4,629

2,488 5,020 Interest (income) expense – net 5,330 10,452 9,610 7,349 25,826 (6,204)

Changes in assets and liabilities:(4,663) 5,182 (Increase) decrease accounts receivable (9,998) (8,313) 31,520 19,284 Decrease (Increase) accounts receivable - related parties (14,926) 32,185

51 44 Decrease (Increase) other receivables (32) 1,516 544 (373) Decrease (Increase) other receivables - related parties 1,446 281

(1,516) (4,606) (Increase) decrease inventories (4,733) 4,797 3,118 5,683 Decrease (Increase) prepaid expenses 2,433 (3,508)

(7,441) (16,879) (Decrease) accounts payable suppliers (567) (15,915) 2,013 6,591 Increase accounts payable - related parties 8,704 27,878 4,668 14,443 Increase accrued expenses and other liabilities 9,534 17,539

37,905 36,718 Cash provided by operating activities 17,688 50,256

250 1,099 Interest received 9,398 10,580 (6,720) (11,906) Interest paid (13,919) (17,535)

31,434 25,911 Net cash (used in) provided by operating activities 13,167 43,301

CASH FLOWS FROM INVESTING ACTIVITIES:(12,491) (7,187) Additions to property, plant and equipment (29,911) (15,258)

(1,692) 3,721 Advances to suppliers in purchase of PP&E - - - 720 Short term investment - 720 - 1,266 Change in service debt reserve - 1,266 362 217 Proceeds from sales of property, plant and equipment 362 217

4 743 Change in restricted cash (56) 9

(13,818) (520) Net cash (used in) investing activities (29,606) (13,046)

CASH FLOW FROM FINANCING ACTIVITIES:- 131,466 New borrowings - notes - 131,466 - (133,095) Principal repayments on borrowings - (133,095)

(427) (2,243) Deferred financing cost payment (427) (2,243) (500) (1) Dividends paid (1,725) (33,775)

(927) (3,873) Net cash (used in) financing activities (2,151) (37,647)

16,690 21,519 NET INCREASE (DECREASE) IN CASH (18,590) (7,392)

36,202 49,963 CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 71,482 78,874

52,892 71,482 CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 52,892 71,482



Andres-DPP and Itabo are controlled and managed by subsidiaries of AES. Itabo owns the lowest-cost thermal power generation units in the Dominican Republic. Itabo operates power generation units that in the aggregate have 260 MW of effective and installed capacity. Itabo also has the only loading dock with the capacity to service Panamax vessels and to unload to 60,000 tons of solid fuels in bulk. Andres and DPP, own and operate power generation units that in the aggregate have 555 MW of installed capacity, which represent approximately 18.7% of the current total installed capacity, in the Dominican Republic. Andres also has the only liquefied natural gas, or LNG, shipment receiving terminal in the Dominican Republic, a degasification facility and a storage facility, or LNG facility, and a natural gas pipeline to Santo Domingo.

The unaudited pro forma combined balance sheet and statement of operations presented in this report have not been audited and were derived from the unaudited consolidated financial statements of Andres and the unaudited consolidated financial statements of DPP. The information provided by the consolidated financial statements of Andres and the consolidated financial statements of DPP and for Itabo has been prepared in accordance with International Financial Reporting Standards (IFRS) as established in the Offering Memorandum of the USD$284 million notes units. The unaudited pro forma combined financial information described above is being provided for illustrative purposes only. Andres and DPP may have performed differently if they had actually been combined during the periods presented. This unaudited proforma combined financial information should be read in conjunction with the unaudited consolidated financial statements as of and for the periods ended on December 31st, 2011 and 2010, and notes thereto, of each of Andres and DPP. You should not rely on the pro forma combined financial information as being indicative of the historical results that would have been achieved by Andres and DPP if they had always been combined.

The AES Corporation (NYSE: AES) is a Fortune 200 global power company. We provide affordable, sustainable energy to 27 countries through our diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. Our workforce of 27,000 people is committed to operational excellence and meeting the world's changing power needs. Our 2011 revenues were $17 billion and we own and manage $45 billion in total assets. To learn more, please visit www.aes.com.

This report may contain forward-looking statements speculative in nature based on the information, operational plans and forecasts currently available about future trends and facts. As such, they are subject to risks and uncertainties. A wide variety of factors may cause future real facts to differ significantly from the issues presented or anticipated in this report, including, among others, changes in general economic, political, government and business conditions. In the event of materializing any of these risks or uncertainties, or if underlying assumptions prove to be mistaken, future real facts may vary significantly. Itabo is not bound to update or correct the information contained in this report.

Please address any questions or comments related to this report to Investor Relations, email address: [email protected]



Glossary of key terms

Btu: British thermal units of measurement. It is a unit of heat in the English European System. Its equivalence in the International System (IS) is the Calorie. The prices of Natural Gas are usually expressed in US$/MMBtu. 1 Btu is equivalent to 252 calories.

CDEEE: Corporación Dominicana de Empresas Eléctricas Estatales. Previously known as CDE.

Coordinating Body:

Deregulated Users (NRU):

“OC” or Organismo Coordinador. Whose function is to plan and coordinate the economic operations of the power providers with those of the transmission, distribution and commercialization system that form the SENI.

The user of the electrical service which monthly demand exceeds the limits established by Superintendence in order to be classified as an unregulated user under the General Electricity Law.

EAF: Equivalent Availability Factor

Effective Capacity: The currently available capacity, as of any date of determination, for generation of a unit or the amount of MW that a power generation unit can reliably generate.

EFOR: Equivalent Forced Outage Rate

Firm Capacity: The amount of capacity assigned by the Coordinating Body to each power generation unit for being available to cover the demand in peak hours.

FX: Foreign exchange, a banking term for changing money from one currency into another.

GDP:

Henry Hub:

The gross domestic product (GDP) is one of the measures of national income and output for a given country's economy. GDP is defined as the total market value of all final goods and services produced within the country in a given period of time (usually a calendar year).

The specific pricing point for natural gas future contracts on the New York Mercantile Exchange, or NYMEX.

Installed capacity:

Liquid Natural Gas (LNG):

The amount of MW a turbine is designed to produce upon installment (name-plate capacity).

Natural Gas processed to be transported in liquid form. It is the best alternative for transporting and storage because when transformed into liquid at atmospheric pressure and -163° C, the liquefaction process reduces the volume of gas by 600 times.

Platts: Is a provider of energy information around the world that has been in business in various forms for more than a century and is now a division of The McGraw-Hill Companies. Products include Platts Energy Economist, industry news and price benchmarks for the oil, natural gas, electricity, nuclear power, coal, petrochemical and metals markets.

PPA: Power Purchase Agreement.

SENI: Sistema Eléctrico Nacional Interconectado or the National Interconnected Electrical System.

AESAndres-Itabo4Q11

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