Andres-Itabo Q312 YTD

Andres Dominicana and Itabo Dominicana, Earning Release - 1 -

Q3 2012 Relevant Results

AES Andres B.V. and Subsidiary and Dominican Power Partners and Subsidiary announced a Combined Net Income of US$12.1 million for Third Quarter 2012 and US$32.1 million as of September 2012

Santo Domingo, Dominican Republic, December 12th, 2012 – Andres-DPP and Itabo announced today results for the third quarter 2012 and September 2012. All operating and financial information, except where otherwise specified, are expressed in accordance with International Financial Reporting Standards, as of any date of determination, or “IFRS”. These figures are not audited.

For Andres-DPP the Revenues increased 8.9% in third quarter 2012 compared with the same period of 2011 and year-to-date (or “YTD”) 2012 increased 14.9% compared with the same period of the previous year. Net Income decreased to US$12.1 million for third quarter 2012 and YTD 2012 Net Income decreased to US$32.1 million.

Table 1: Summary of Financial Results of Andres & DPP

(*) 2011 amounts revised. (**) Net Income includes interest expenses of US$9.6 million in 3Q12 and 3Q11 and US$28.6 million YTD 2012 and US$28.5 YTD 2011, 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 Income was US$0.8 million for third Quarter 2012 and US$13.8 million as of September 2012

For Itabo, Revenues for the 3Q2012 decreased 10.7% to US$56.8 million compared to US$63.6 million in the 3Q2011. In addition, YTD 2012 Revenues increased 4.1% to US$185.5 million compared to 2011 YTD Revenues of US$178.1 million. Net Income was US$0.8 million for third quarter 2012 against a Net Loss of US$7.7 million in same period 2011 and YTD 2012 Net income was US$13.8 million compared to Net Loss of US$3.0 million by 2011 year end. Table 2: Summary of Financial Results of Itabo

(*) 2011 amounts revised.

(Millions of US$) 2012 2011 2012 2011

Revenues 56.8 63.6 185.5 178.2

Operating costs and expenses 49.1 72.6 154.0 179.1

Operating Income (loss) 7.7 (9.0) 31.5 (0.9)

Operating Income margin 13.6% -14.2% 17.0% -0.5%

Net Income (loss) (*) 0.8 (7.7) 13.8 (3.0)

Net Cash Provided by (Used in)

Operating Activities (*) 64.8 (13.1) 68.6 (17.5)

Q3 YTD

Third Quarter 2012 Relevant Results Santo Domingo, Dominican Republic December 12th, 2012

Contact:

Maribel Álvarez Corporate Finance Director

(1) (809) 955-2223 [email protected]

www.aesdominicana.com.do

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

Other Relevant Information 6

Dividends 6

Liquidity 6

Operational Results of Andres & DPP 6

Operational Results of Itabo 7

Operational Highlights 8

Safety Indicators 8

Environmental Matters 9

Financial Statements 10

Glossary of Key Terms 17

(Millions of US$) 2012 2011* 2012 2011*

Revenues 135.6 124.5 381.0 331.7

Operating costs and expenses 97.2 71.5 293.4 195.8

Operating income 38.4 53.0 87.6 135.9

Operating income margin 28.3% 42.6% 23.0% 41.0%

Net Income (**) 12.1 42.1 32.1 83.5

Net Cash Provided by (Used in)

Operating Activities 12.1 30.1 40.7 53.1

Q3 YTD



4.563.65 3.31

14.74

16.17

14.56

16.40

15.26

15.25

4.10

2.50

2.89

0

2

4

6

8

10

12

14

16

18

3Q11 4Q11 1Q12 2Q12 3Q12

US

$/M

MB

TU

CoalCoal

Fuel-Oil #6

Natural Gas Spot

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

Natural Gas Nymex

External Factors1

� Dominican Republic’s annual GDP grew 3.8% as of June 30th2, 2012.

� The accumulated Inflation stood at 2.37% as of September 2012.

� The exchange rate as of September 30th

, 2012 was RD$39.34 per US dollar (Ask) and RD$39.26 per US dollar (Bid).

� Average Nymex Henry Hub natural gas prices were US$2.89 per MMBtu for third quarter 2012, with a peak of US$3.32 per MMBtu and a low of US$2.61 per MMBtu.

3

� Average Coal prices were US$3.31 per MMBtu for third quarter 2012, with a peak of US$3.50 per MMBtu and a low of US$3.20 per MMBtu.

� Total electricity demand as of September 2012 reached 9,904 GWh, an increase of 7% versus the same period 2011.

Analysis of Andres-DPP Combined

4 Financial Results (In IFRS)

Table 3: Results for Third Quarter & Year-to-day 2012 of Andres & DPP

(*) Amounts revised for 2011 (**) 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. (***) Free Cash Flow is a non-GAAP financial measure defined as net cash from operating activities less CAPEX Maintenance and environment.

1 Source: Dominican Central Bank, Coordinating Body and FOB, 6300 kcal/kg Puerto Bolivar, Platts International Coal Report.

2 September 2012 figures not yet available.

3 Pricing under the BP Contract is at a premium to the Henry Hub natural gas price per MMbtu on the NYMEX Index.

4 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.

Natural Gas Spot: As reference, it is used the 14% of Dated Brent Index, published in the Platts Crude Oil Marketwire

Chart 1: Fuel Prices Evolution

2012 2011 2012 2011

Revenues 135.6 124.5 381.0 331.7

Electricity sales – Contracts 64.8 78.3 190.2 206.8

Electricity sales – spot market 29.5 42.4 78.7 108.6

Natural Gas Sales 39.8 3.8 108.0 16.3

Other Sales 1.5 0.0 4.1 0.0

Operating Cost and Expenses 97.2 71.5 293.4 195.8

Cost of sales- fuel & electricity purchases for generation 61.7 51.0 191.7 135.4

Cost of sales- fuel & related costs purchased for resale 18.8 5.9 51.7 14.6

Operating, maintenance and general expenses 9.7 8.2 29.3 26.4

Depreciation 7.0 6.4 20.7 19.4

Other (Expenses) Income(*) (9.2) 1.0 (27.0) (23.3)

Interest (expense) – financial - net (4.2) (4.1) (12.3) (12.9)

Interest income – commercial and others-net 6.1 3.1 17.7 7.2

Intercompany loan interest expense (**) (9.6) (9.6) (28.6) (28.5)

Other (expense) income (0.8) 11.7 (2.3) 11.1

Exchange (loss) (0.7) (0.1) (1.5) (0.2)

Cash Flows Variations- Provided by (Used in) Operating Activities 12.1 30.1 40.7 53.1

Increase (decrease) accounts payable (31.7) (8.8) 11.2 (19.8)

(Increase) decrease accounts receivable 16.7 (23.9) 5.9 (33.2)

Income Tax Paid (9.5) (4.4) (42.3) (19.8)

(Negative) positive adjustments 24.5 25.1 33.9 42.4

(Decrease) Increase net income 12.1 42.1 32.1 83.5

Free Cash Flow (***) 3.2 26.5 21.2 29.6

Net Cash Provided by (Used in) Operating Activities 12.1 30.1 40.7 53.1

(Less) Maintenance and enviromental CAPEX (9.0) (3.6) (19.5) (23.5)

Q3 YTD

(Millions of US$)



Key drivers of Third Quarter results (Q3 2012 Vs. Q3 2011) for Andres-DPP:

• Revenues increased 8.9% to US$135.6 million. This result was mainly driven by the net effect of: (i) higher natural gas sales by US$36.0 million due to (a) US$21.5 million related to an increase in the average LNG sales price (indexed to the spot LNG prices in the international market) and (b) US$14.5 million due to an increase in the volume sold; (ii) lower spot sales by US$12.9 million due to higher energy required by contracts during Q3 2012, and therefore lower energy available to sold in the spot market (Q3 2012- 43GWh Vs. Q3 2011-177GWh); (iii) US$13.5 million of lower contracted sales due to lower contracted prices derived of the reduction of the natural gas price index (NYMEX); and, (iv) higher other sales by US$1.5 million basically from pipeline fees to third parties.

• Operating Costs and Expenses increased 35.9% to US$97.2 million. This variance was principally due to: (i) US$12.9 million due to higher fuel & related cost purchased for resale; (ii) higher cost of fuel & electricity purchased for generation by US$10.7 million mainly related to an increase in the average LNG cost attributable to the vessels of LNG at spot prices bought during the quarter; (iii) US$1.5 million of higher operating, maintenance and general expenses basically for the annual maintenance of Los Mina VI; and, (iv) higher depreciation by US$0.6 million.

• Total Other Expenses was US$9.2 million. This negative result was mainly a net function of: (i) lower other income by US$12.5 million, basically due to an agreement between CDEEE – DGII (local tax authorities) and DPP in 2011 due to local taxes paid and recognized by CDEEE. d; (ii) higher commercial interest income by US$3.0 million; during 2011 there was a sector agreement whereby calculation of commercial interests was eliminated, this agreement ended in December 2011; and, (iii) higher exchange loss by US$0.6 million.

• Net Cash Provided by Operating Activities was US$12.1 million as net result of the following: (i) Higher accounts receivable collections by US$40.6 million for the proceeds received of a Sovereign Bonds monetized by the Government during the quarter; (ii) lower net income (net of non-cash activities) by US$30.6 million derived of higher cost of sales; (iii) negative impact for higher operating payments by US$22.9 million; and, (iv) negative impact by US$5.1 million from higher income tax paid..

• Free Cash Flow was net cash provided by US$3.2 million. During this period there were maintenance and environmental CAPEX by US$12.1 million.

Key drivers of Year-to-Date Quarter results (YTD 2012 Vs. YTD 2011) for Andres-DPP:

• Revenues increased 14.9% to US$381.0 million. This increase was mainly a net result of: (i) higher natural gas sales by US$91.7 million due to (a) US$57.2 million related to an increase in the average LNG sales price and (b) US$34.5 million due to an increase in the volume sold; (ii) lower spot sales by US$29.9 million, mainly related to higher energy required by contracts during first half of 2012, and therefore lower energy available to sold in the spot market (Q3 2012- 93GWh Vs. Q3 2011- 466GWh); (iii) lower contracted energy sales by US$16.6 million due to lower contracted prices; and, (iv) higher other sales by US$4.1 million mainly from pipeline fees to third parties.

• Operating Costs and Expenses increased 49.8% to US$293.4 million. This variance was mainly caused by: (i) higher cost of fuel & electricity purchased for generation by US$56.3 million mainly related to (a) US$42.0 million due to an increase in the average LNG cost for the purchase of four vessels at spot prices and due to higher generation, and (b) US$14.3 million due to higher spot energy purchases during January and February 2012 as a consequence of lower generation triggered by a major maintenance performed in Andres plant and the major maintenance performed in July in Los Mina VI; (ii) US$37.1 million due to higher fuel & related cost for resale due to (a) US$24.9 million related to an increase in the average LNG price and (b) US$12.2 million due to an increase in the volume sold; and, (iii) higher operating, maintenance and general expenses by US$2.9 million.

• Total Other Expenses increased 15.9% to US$27.0 million. This increase was mainly a net function of: (i) lower other income by US$13.4 million; (ii) higher net commercial interest income by US$10.5 million due to same factor driving third quarter 2012 variance; (iii) higher exchange loss by US$1.3 million; and, (iv) lower net financial interest expense by US$0.6 million mainly related to higher investments held during 2012 and lower deferred financing cost.

• Net Cash Provided by Operating Activities was US$40.7 million, as result of: (i) lower net income (net of non-cash activities) by US$42.9 million derived from higher cost of sales; (ii) positive impact due to higher account receivables collections by US$39.1 million; (iii) positive impact due to lower operating payments by US$31.0 million; and, (iv) negative impact due to higher tax paid by US$22.5 million.




Analysis of Itabo’s Consolidated5 Financial Results (In IFRS)

Table 4: Results for Third Quarter & Year-to-day 2012 of Itabo

Key drivers of Third Quarter results (Q3 2012 Vs. Q3 2011) for Itabo:

• Revenues decreased 10.7% to US$56.8 million. This result was mainly driven by US$6.5 million of lower electricity sales that resulted from lower contract prices indexed by lower average coal market prices.

• Operating Costs and Expenses decreased 32.4% to US$49.1 million. This variance was principally a net result of: (i) lower electricity purchases by US$22.4 million derived from higher generation; (ii) lower coal consumption by US$1.1 million due to lower average cost and in spite of higher generation; (iii) lower operating, maintenance and general expenses by US$0.5 million; and, (iv) higher depreciation by US$0.5 million.

• Other Expenses decreased to US$5.0 million. This positive variation was primarily attributable to: (i) lower other expenses by US$4.3 million basically for lower assets disposal during Q3 2012; and, (ii) higher commercial interest expense by US$2.2 million; during 2011 there was there was a sector agreement whereby calculation of commercial interests was eliminated, this agreement ended in December 2011.

• Net Cash Provided by Operating Activities was US$64.8 million, as result of: (i) Higher accounts receivable collections by US$59.7 million basically for the proceeds received of a Sovereign Bonds monetized by the Government during the quarter; (ii) US$21.8 million of higher net income (net of non-cash activities), basically for lower cost and expenses; and, (iii) negative impact higher operating payments by US$3.6 million.

5 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.

(*) 2011 amounts revised (**) Free Cash Flow is a non-GAAP financial measure defined as net cash from operating activities less CAPEX Maintenance and environmental.

2012 2011 2012 2011

Revenues 56.8 63.6 185.5 178.2

Electricity Sales 56.8 63.3 184.9 177.6

Other revenues 0.0 0.3 0.6 0.6

Operating Cost and Expenses 49.1 72.6 154.0 179.1

Cost of Revenues 34.7 58.2 111.9 139.7

Operating, maintenance and general expenses 8.3 8.8 24.2 22.3

Depreciation 6.0 5.5 17.6 16.8

Amortization of contracts 0.1 0.1 0.3 0.3

Other Income (Expenses) (5.0) (7.7) (11.3) (9.0)

Interest (expenses)- financial- net (2.8) (3.0) (8.3) (8.9)

Interest income (expenses)- commercial- net (1.2) 1.0 (2.1) 6.1

Other (expenses)- net (*) (1.3) (5.6) (1.3) (6.0)

Foreign Currency Income (loss) (*) 0.3 (0.1) 0.4 (0.2)

Cash Flows Variations- Provided by (Used in) Operating Activities 64.8 (13.1) 68.6 (17.5)

Increase (decrease) accounts payable 2.2 5.8 12.3 13.9

(Increase) decrease accounts receivable 42.2 (17.5) 2.3 (51.1)

(Negative) positive adjustments 19.6 6.3 40.2 22.7

(Decrease) Increase net income 0.8 (7.7) 13.8 (3.0)

Free Cash Flow (**) 60.6 (21.5) 58.7 (34.0)

Net Cash Provided by (Used in) Operating Activities 64.8 (13.1) 68.6 (17.5)

(Less) Maintenance and enviromental CAPEX (4.2) (8.4) (9.9) (16.5)

Q3 YTD

(Millions of US$)



• Free Cash Flow was net cash provided of US$60.6 million. During this period there were maintenance and environmental CAPEX by US$4.2 million.

Key drivers of Year-to-Date Quarter results (YTD 2012 Vs. YTD 2011) for Itabo:

• Revenues increased 4.1% to US$185.5 million. This increment was mainly a result of higher electricity sales by US$7.3 million due to increase in contract and spot energy prices and higher energy quantity sold.

• Operating Costs and Expenses decreased 14.0% to US$154.0 million. This variation was mainly caused by net effect of: (i) lower cost of sales by US$27.8 million derived of lower coal average cost and lower energy purchased due to higher generation; (ii) higher operation maintenance and general expenses by US$1.9 million basically from higher maintenance expenses; and, (iii) higher depreciation by US$0.8 million.

• Other Expenses increased to US$11.3 million. This variance was net result of: (i) higher net commercial interest expense by US$8.2 million; (ii) lower other expense by US$4.7 million mainly for lower obsolete generation equipment retired; (iii) lower net financial interest expense by US$0.6 million and, (iv) higher foreign currency income by US$0.6 million.

• Net Cash Provided by Operating Activities was US$68.6 million. This variation was primarily the net result of: (i) Higher accounts receivable collections by US$53.4 million due to lower days sales outstanding (DOS); (ii) higher net income (net of non-cash activities) by US$34.3 million; and, (iii) negative impact from higher operating payments by US$1.6 million.


Financial Debt Summary

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

Table 5: Summary of Debt Profile of Andres-DPP Table 6: Summary of Debt Profile of Itabo

Rating Agency Market Rating Outlook

Fitch Ratings (Andres-DPP) International Senior Notes 2020 B Positive

Fitch Ratings (Itabo) International Senior Notes 2020 B Positive

Standard & Poor's (Andres-DPP) International Senior Notes 2020 B Stable

Standard & Poor's (Itabo) International Senior Notes 2020 B- Stable

Fitch Dominicana (Itabo) Local Corporate Bonds 2013 A- (dom)

Table 7: Summary of International & Local Ratings

Financial Debt Sep-12 Dec-11

(expressed in millions of US$)

Local Currency - -

Foreign Currency 168 168

Total 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) 8 9

Financial Debt Sep-12 Dec-11

(expressed in millions of US$)

Local Currency - -

Foreign Currency 131 131

Total 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) 7 8



The average collection rate is calculated using the total collected vs. the total billed to the DISCOS during the quarter.

69 73

24 33

75

147

107 66 72

72

181

111

6361

69

2008 2009 2010 2011 Sep. 12

DPP

Itabo

Andres

Other Relevant Information

� In August 2012, Coastal and NCI initiated an international arbitration proceeding against FONPER and the Dominican Republic, seeking a declaration that Coastal and NCI have acted both lawfully and in accordance with the relevant contracts with FONPER and the Dominican Republic in relation to the management of Itabo.

� In October government bid round to contract out the construction of new power generation plants was suspended.

� In November 10th, 2012, the Dominican Government promulgated a tax reform designed to reduce the fiscal deficit.

Dividends

� On September 25th

, 2012 Itabo paid dividends for a gross amount of US$3.4 million. These were declared in its Annual Shareholders Assembly performed in June.

� On September 26th

, 2012, AES Andres paid dividends for a gross amount of US$20.4 million.

Liquidity

Collections

� During third quarter 2012 the average collection rate for Andres-DPP was 138% against 83% in the same period 3Q11 and for Itabo 164% against 76%. This improvement is due to the Government paid part of current debts to generation companies with a sovereign bond of US$500 million issued in September.

� YTD 2012, the average collection rate for Andres-DPP was 99% against 87% in the same period 2011 and for Itabo 102% against 78% YTD 2011.

� As of September 30th

, 2012 Andres accounts receivables have 75 days sales outstanding (DSO), 69 DSO for DPP and 72 DSO for Itabo compared to 33, 61 and 72 DSO, respectively as of December 31

st, 2011.

Operational Results of Andres-DPP

Chart 3: Days Sales Outstanding (DSO)

Chart 2: Average Collection Rate

The DSO was calculated using the current account receivables as of September 30th,

2012, divided by the average month sales for 6 months. It assumes 30 days in a month.

Table 8: Summary of Technical Details

83%

146%

58%

100% 138%

76%

144%

57%89%

164%

3Q11 4Q11 1Q12 2Q12 3Q12

Andres - DPP Itabo

As of Sep. 30th, 2012 Andres DPP Aggregate

Installed capacity (MW) 319 236 555

Power Generation Units 1 2 3

Effective capacity (MW) 304 236 540

Contracted capacity (MW) 232 210 442



(*) Amount revised for 2011.

Key drivers of Third Quarter results (Q3 2012 Vs. Q3 2011) for Andres-DPP:

• Combined Net Generation decreased 0.9% to 886 GWh.

• Total Energy generated during the quarter was completely sold. The Firm Capacity decreased to an average of 277MW.

• EAF of Andres was 98.0% and its EFOR increased to 0.9%, as well as its Heat Rate to 7,740 Btu/KWh.

• DPP’s Firm Capacity increased to an average of 67MW, as a result of higher availability since operational improvements performed on its units.

• DPP’s EAF decreased to 92.8% due to a major maintenance for 11 days and its EFOR improved to 0.02%.

Key drivers of Year-to-Date Quarter results (YTD 2012 Vs. YTD 2011) for Andres-DPP:

• Combined Net Generation increased 0.6% to 2,500 GWh. The Energy Sold increased 1.6% to 2,547 GWh, basically due higher generation and due to Andres has more contracted energy.

• The Andres’ EAF improved to 93.2% and the EFOR was 0.41%.

• DPP’s Firm Capacity increased to 83MW, as a result of higher availability since the operational improvements performed on its units.

• EAF has increased to 96.3% since its units has been working as based load plants since 2010. The EFOR improved to 0.25%.

Operational Results of Itabo

(*)Includes San Lorenzo turbogas with 34MW

Table 9: Summary of Key Performance Indicators

Table 10: Summary of Technical Details (*)

Operating Data 2012 2011 2012 2011

Gross generation GWh 903 907 2,551 2,522

Internal consumption GWh (17) (13) (51) (36)

Net Generation GWh 886 894 2,500 2,4860

Total Energy Sold (*) GWh 890 894 2,547 2,507

Andres' Firm Capacity (average) MW 277 281 279 281

Andres Heat Rate Btu/KWh 7,740 7,667 7,724 7,741

Andres EAF % 98.0 98.3 93.2 90.6

Andres EFOR % 0.9 0.3 0.4 0.4

DPP's Firm Capacity (average) MW 67 66 83 51

DPP EAF % 92.8 98.2 96.3 93.3

DPP EFOR % 0.0 0.4 0.3 0.2

Q3 YTD

As of Sept. 30th, 2012

Installed capacity (MW) 294

Power Generation Units 3

Effective capacity (MW) 294



Key drivers of Third Quarter results (Q3 2012 Vs. Q3 2011) for Itabo:

• Net Generation increased 43.2% to 434 GWh due to lower maintenances days (2012- 23 days vs. 2011-52 days) and due to San Lorenzo unit started operations. The total Energy sold increased 5.3% to 458 GWh. The startup of Lorenzo increased the Firm Capacity to 239 in average for the quarter.

• The Heat Rate increased 1.1% to 11,304 Btu/KWh. The EFOR increased to 6.5% due to Itabo II had a forced outage for 18 days and the EAF increased to 89.1% due to lower maintenance days.

Key drivers of Year-to-Date Quarter results (YTD 2012 Vs. YTD 2011) for Itabo:

• Net Generation increased 16.9% to 1,288 GWh and average Firm Capacity increased to 230 MW since the startup of San Lorenzo unit.

• The Energy Sold increased 2.6% due to higher contracted and spot sales, derived for higher generation.

• Heat Rate increased 0.6% to 11,271 Btu/KWh, the EFOR increased to 6.2% for the failure occurred in June and the EAF improved to 82.4% due to lower maintenance days.

Operational Highlights

� From July 07th to 18th, 2012, Los Mina VI was put out of service due to its annual Programmed Maintenance.

� On August 25th, the Electricity Superintendence authorized the commercial operation of the San Lorenzo Plant, a turbogas power plant with 34MW of installed capacity.

� In September 2012, the contracted capacity between Andres and EdeEste increased to 120 MW from 105 MW, according to the established in the agreement signed in July 2011.

� During third quarter 2012, Andres received six vessels with 13.1TBTU of natural gas, including three bought at spot prices and Itabo received two coal vessels containing 103,261 MT.

� In October 2012, the third LNG vaporization train at AES Andres facility was finalized. The startup of the new vaporization send out train will increase the operating rate from the current plant design of 125 to 250 Million standard cubic feet per day (MMSCFD) while permitting concurrent truck loading operation, and maintaining 125 MMSCFD as a backup, increasing in this way the operational reliability and availability of AES LNG import Terminal.

Safety Indicators

� During third quarter 2012, Andres, DPP and Itabo did not have Lost Time Incidents (LTI) or fatalities.

� During third quarter 2012, 8,055 man hours invested in safety training, including AES people and contractors. Besides, there were performed 815 safety walks during the medium and high risk works, for AES people and contractors.

Table 11: Summary of Key Performance Indicators

2012 2011 2012 2011

Gross generation GWh 471 334 1,403 1,212

Internal consumption GWh (37) (31) (115) (110)

Net Generation GWh 434 303 1,288 1,102

Total Energy Sold GWh 458 435 1,350 1,316

Firm Capacity (average) MW 239 226 230 226

Heat Rate Btu/KWh 11,304 11,186 11,271 11,208

EAF % 89.1 67.6 82.4 72.0

EFOR % 6.5 0.6 6.2 4.3

Q3 YTD



Environmental Matters

� During third quarter 2012, Andres, DPP and Itabo have complied with all environmental requirements of AES Corporation and the Dominican laws.

� During third quarter 2012, an internal recycling campaign was launched during Values & Environment Day Celebration. Our collaborators received a booklet with instructions for recycling and bags for segregating plastic, paper and glass.



(*) The Q3 2011 and September 2011 amounts were revised.

(**) 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$9.5 million in Q3 2012 and Q3 2011, 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.”

Dominican Power Partners and subsidiary

(Indirect Wholly-Owned Subsidiaries of The AES Corporation)

UNAUDITED COMBINED STATEMENTS OF INCOME

(Expressed in thousandsUS$)

2012 2011 (*) 2012 2011 (*)

REVENUES

Electricity sales – contracts 64,757 78,326 190,178 206,840

Electricity sales – spot market 29,517 42,442 78,779 108,577

Natural gas sales 39,790 3,735 107,880 16,218

Other sales 1,578 13 4,174 39

Total revenues 135,642 124,516 381,011 331,674

OPERATING COSTS AND EXPENSES

Cost of sales – electricity purchases and fuel costs used for generation (61,713) (50,982) (191,678) (135,364)

Cost of sales – fuel and fuel related costs purchased for resale (18,815) (5,896) (51,720) (14,572)

Operating, maintenance and general expenses (9,670) (8,189) (29,232) (26,418)

Depreciation (6,989) (6,383) (20,733) (19,444)

Total operating costs and expenses (97,187) (71,450) (293,363) (195,798)

OPERATING INCOME 38,455 53,066 87,648 135,876

OTHER INCOME (LOSS)

Interest income (expense) – net 1,909 (955) 5,436 (5,606)

Intercompany loan interest expense (**) (9,634) (9,634) (28,694) (28,589)

Other (expense) income (806) 11,730 (2,337) 11,149

Exchange loss (698) (141) (1,502) (256)

INCOME BEFORE TAXES 29,226 54,066 60,551 112,574

Income tax (17,167) (11,970) (28,494) (29,034)

NET INCOME (***) 12,059 42,096 32,057 83,540

Three Months Ended September 30, Nine Months Ended September 30,




AES Andres B. V. and subsidiary, and

Dominican Power Partners and subsidiary


UNAUDITED COMBINED STATEMENTS OF FINANCIAL POSITION

(Expressed in thousands US$)

Sep. 30th, 2012 Dec. 31st, 2011

ASSETS

CURRENT ASSETS

Cash and cash equivalents 128,825 131,130

Short term investment 8,600 - Accounts receivables 121,159 92,254

Accounts receivable – related parties 60,307 52,670

Inventories 40,233 19,326

Other financial assets 80 5,000

Other assets 12,021 11,707

Derivative asset 391 -

Total current assets Total current assets 371,616 312,087

PROPERTY, PLANT AND EQUIPMENT

Land 16,192 15,784

Property, plant and equipment 722,965 706,689

Less accumulated depreciation (225,402) (206,310)

Property, plant and equipment Total Property, plant and equipment 513,755 516,163

OTHER ASSETS

Accounts receivables non curent 15,917 19,774

Debt service reserves 7,959 7,959

Other financial assets 19,285 22,685

Other assets 1,351 1,736

Total other assets 44,512 52,154

TOTAL ASSETS 929,883 880,404

LIABILITIES AND SHAREHOLDER'S EQUITY

CURRENT LIABILITIES

Accounts payable 39,111 18,113

Related parties 21,099 5,303

Interest related parties 9,634 -

Interest payable 6,158 2,136

Income tax payable 5,197 22,963

Derivative current 15 762

Accrued expenses and other liabilities - 301

Total current liabilities Total current liabilities 81,214 49,578

LONG TERM LIABILITIES

Deferred income tax 58,647 54,479

Intercompany loan 413,153 413,153

Notes payable 164,207 164,025

Derivative non current 5,006 3,135

Other non current liabilities 103 170

Total long term liabilities Total long term liabilities 641,116 634,962

SHAREHOLDER'S EQUITY

Common stock 15,019 15,019

Contributed capital 109,258 109,236

Additional paid–in capital 672 662

Accumulated other comprehensive loss (36) (36)

Restricted retained earnings 36,852 36,852

Accumulated earnings 45,788 34,131

Total shareholder's equity Total shareholder's equity 207,553 195,864

TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY 929,883 880,404



(*) The Q3 2011 and YTD 2011 report was revised.


AES Andres B. V. and subsidiaries, and

Dominican Power Partners and Subsidiaries


UNAUDITED COMBINED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011

(Expressed in thousands US$)

2012 2011 (*) 2012 2011 (*)

CASH FLOW FROM OPERATING ACTIVITIES:

Net income 12,059 42,096 32,057 83,540

Adjustments to reconcile net income to net cash used in

operating activities:

Depreciation and amortization 6,989 6,383 20,733 19,444

Derivative instruments 3,476 2,357 560 6,534

Income tax expense 17,167 11,970 28,494 29,034

Loss on asset disposal 825 2,153 2,456 2,820

Gain on asset sale - - (2) (39)

Long term compensation 23 63 71 187

Subordinated intercompany loan interest expense 9,634 9,320 28,694 28,589

Interest expense – net (1,908) 955 (5,435) 5,606

Foreign exchange loss 698 142 1,503 256

Decrease (Increase) in accounts receivable 10,851 (17,925) (13,858) (41,284)

Decrease (Increase) in accounts receivable – related parties 5,889 (5,997) 19,758 8,064

Decrease (Increase) in inventories (19,817) 4,255 (20,415) (1,862)

Decrease (Increase) decrease in other assets 11,615 (2,945) 2,724 (3,116)

Increase (Decrease) in accounts payable and accrued liabilities (5,934) (1,478) 14,309 (8,558)

(Decrease) in accounts payable – related parties (25,754) (7,317) (3,090) (11,248)

Increase (Decrease) in accrued and other liabilities 52 (1,085) 1,499 59

Cash generated from operations 25,865 42,948 110,058 118,027

Interest received 149 (8,834) 447 597 Interest paid (4,457) 370 (27,451) (45,730)

Income taxes paid (9,474) (4,402) (42,333) (19,774)

Net cash provided by operating activities 12,083 30,081 40,721 53,120

CASH FLOW FROM INVESTING ACTIVITIES:

Additions to property, plant and equipment (8,964) (3,569) (19,537) (23,538)

Decrease (increase) in restricted cash (52) (5,003) 4,959 (5,148)

Sale of short term investment - 359 - 359

Purchase of short term investment - (372) (8,600) (10,579)

Collections of loans made to other parties - principal payments - - 555 19,269

Debt service reserve and other assets - - 108 -

Proceeds from the sales of assets 0 - 2 39

Net cash (used in) by investing activities (9,016) (8,585) (22,513) (19,598)

CASH FLOW FROM FINANCING ACTIVITIES:

Dividend payment (20,400) - (20,400) -

Financing costs payments (34) (314) (100) (314)

Repayments of capital lease obligations (5) 8 (13) (1)

Net cash (used in) financing activities (20,439) (306) (20,513) (315)

NET (DECREASE) INCREASE IN CASH (17,373) 21,190 (2,305) 33,207

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 146,198 131,669 131,130 119,652

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 128,825 152,859 128,825 152,859




(*) The final September 2011 report was modified in these lines.


EMPRESA GENERADORA DE ELECTRICIDAD ITABO, S. A. AND SUBSIDIARY

(An indirectly subsidiary of The AES Corporation)

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts expressed in thousands of US dollars)

2012 2011 2012 2011

Revenues 56,832 63,552 185,515 178,181

Operating costs and expenses

Cost of sales (34,737) (58,158) (111,921) (139,687)

General, operating and maintenance expenses (8,309) (8,745) (24,218) (22,279)

Depreciation (6,000) (5,535) (17,544) (16,805)

Amortization of contracts (118) (118) (353) (353)

Total operating costs and expenses (49,164) (72,556) (154,036) (179,124)

Operating Income (loss) 7,668 (9,004) 31,479 (943)

Other income (expense)

Interest expense, net (4,035) (2,048) (10,431) (2,842)

Other expenses – net (*) (1,258) (5,637) (1,266) (6,059)

Exchange gain (loss), net (*) 266 (118) 319 (189)

Income (loss) before income taxes (*) 2,641 (16,807) 20,101 (10,033)

Income tax expense (*) (1,849) 9,148 (6,276) 7,134

Net Income (loss) (*) 792 (7,659) 13,825 (2,899)







UNAUDITED CONSOLIDATED BALANCE SHEETS


Sep. 30th, 2012 Dec. 31st, 2011

Assets

Current Assets

Cash 108,624 52,892

Accounts receivable from clients 77,050 8,068

Accounts receivable - Related parties, net 3,313 71,509

Inventories 17,840 27,028

Prepaid tax 6,344 1,516

Other non financial assets 1,622 1,365

Total current assets 214,793 162,378

Non Current Assets

Property, plant and equipment, net 337,890 349,142

Long term accounts receivable 23,114 28,727

Prepaid tax 8,887 17,663

Long term investment - 323

Other financial assets 5,531 5,531

Other non financial assets 8,317 6,146

Total non current assets 383,739 407,532

Total Assets 598,532 569,910

Liabilities and Equity

Current Liabilities

Accounts payable 24,439 23,788

Accounts payable - Related parties 63,363 51,597

Accrued expenses and other liabilities payable 6,904 3,837

Total current liabilities 94,706 79,222

Non Current Liabilitites

Financial Liabilities 128,975 128,792

Deferred income tax 36,372 33,855

Other non-current liabilities 16 19

Total non current liabilities 165,363 162,666

Equity

Common stock, RD$100 par value; 56,355,556 355,556 355,556

shares authorized and outstanding

Additional paid in capital 245 229

Accumulated deficit (110,087) (120,512)

Restricted retained earnings 92,749 92,749

Total shareholders' equity 338,463 328,022

Total Liabilities and Equity 598,532 569,910



(*)The final September 2011 report was revised.




UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


2012 2011 (*) 2012 2011 (*)

CASH FLOWS FORM OPERATING ACTIVITIES:

Net income (loss) 792 (7,659) 13,825 (2,899)

Adjustments to reconcile net income to net cash (used in)

provided by operating activities:

Depreciation 6,000 5,535 17,544 16,805

Amortization of contracts 118 118 353 353

Income tax 1,531 (7,134) 1,531 (7,134)

Provision for deferred taxes (335) (1,282)

Net loss on sale or disposal of asset 1,246 5,643 1,244 6,009

Loss(gain) unrealized foreign currency (266) 118 (319) 189

Long-term compensation 9 5 28 16

Interest expenses, net 4,035 2,048 10,431 2,842

Changes in assets and liabilities:

(Increase) Decrease Accounts receivable (71,402) 172 (65,888) (5,609)

Decrease (Increase) Accounts receivable - related parties 113,613 (17,640) 68,196 (45,521)

Decrease (Increase) Inventories 6,060 (293) 9,027 (3,217)

(Increase) Decrease Income Tax Receivable - Foreign 1,037 (741) 4,934 (8)

Decrease (Increase) Prepaid expenses 16 (1,807) (257) (700)

(Decrease) Increase Accounts payable (5,385) 4,890 559 7,196

Increase Accounts payable - related parties 7,577 878 11,766 6,668

(Decrease) Increase Accrued expenses and other liabilities (1,152) 3,186 589 4,866

Cash provided (used in) by operating activities 63,494 (13,962) 73,563 (20,144)

Interest received 786 1,092 2,837 9,148

Interest paid 484 (202) (7,725) (6,507)

Net cash provided (used in) by operating activities 64,764 (13,072) 68,675 (17,503)

CASH FLOWS FROM INVESTING ACTIVITIES:

Additions to property, plant and equipment (4,224) (8,408) (9,866) (16,493)

Long term investment - - 323 (60)

Net cash used in investing activities (4,224) (8,408) (9,543) (16,553)

CASH FLOW FROM FINANCING ACTIVITIES:-

Dividends paid (3,400) (1,224) (3,400) (1,224)

Net cash used in financing activities (3,400) (1,224) (3,400) (1,224)

NET INCREASE (DECREASE) IN CASH 57,140 (22,705) 55,732 (35,280)

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 51,484 58,907 52,892 71,482

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 108,624 36,202 108,624 36,202




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 September 30th, 2012 and 2011 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.

Andres-Itabo Q312 YTD

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Transcript of Andres-Itabo Q312 YTD