AES Announces Next Steps in Its Strategic Transformation

ARLINGTON, Va.–(BUSINESS WIRE)–The
AES Corporation (NYSE: AES) today announced a reorganization as part
of its ongoing strategy to simplify its portfolio, optimize its cost
structure and reduce its carbon intensity.

“Our new structure will accelerate our transformation to an energy
company of the future. These changes will allow us to quickly capitalize
on opportunities by delivering safe, reliable and affordable energy
solutions that create shareholder value,” said Andrés
Gluski, AES President and Chief Executive Officer. “Today’s
announcement continues the progress we have made to-date on our
strategy, including focusing our geographic footprint down to 16
countries from 28, implementing our previously announced cost savings
initiatives, and reducing our carbon intensity by bringing new energy
solutions to the markets we serve.”

Reflecting AES’ simplified portfolio, AES is consolidating its five
Strategic Business Unit structure and will now manage its global
operations and infrastructure activities under Executive Vice President
and Chief Operating Officer, Bernerd
Da Santos.

The Company also has reorganized its growth and commercial activities
into three new units. These units will be led by three existing
executives:

• Executive Vice President and Chief Financial Officer, Tom
  O’Flynn will continue in his current role and assume additional
  responsibility for leading the US Renewables growth unit;
• Manuel Pérez Dubuc will lead a consolidated South America growth unit
  that includes Argentina, Brazil, Chile and Colombia; and
• Juan Ignacio Rubiolo will lead the Mexico, Central America and the
  Caribbean growth unit.

The new leaner organizational structure reflects the simplification of
the Company’s portfolio and cumulative investments in IT, and will
result in a lower headcount and overhead costs. This initiative supports
the Company’s objectives of achieving investment grade metrics by 2019
and delivering attractive returns. The Company will provide additional
detail on its upcoming Fourth Quarter and Full Year 2017 Financial
Review Call on February 27, 2018 at 9:00 AM Eastern Time.

The new organizational structure will also accelerate the application of
new technologies in AES’ existing businesses. With the acquisition of
sPower last year, the largest independent solar developer and operator
in the US, the launch of Fluence, the Company’s Joint Venture with
Siemens and a leading provider of battery-based energy storage around
the world, new renewable projects in development or under construction
in the US, Mexico, Brazil, El Salvador and Jordan, and the addition of
an LNG terminal and gas plant currently under construction in Panama,
AES is delivering on its goal to reduce its carbon intensity and
accelerate a greener energy future in the markets it serves.

About AES

The AES Corporation (NYSE: AES) is a Fortune 200 global power company.
We provide affordable, sustainable energy to 16 countries through our
diverse portfolio of distribution businesses as well as thermal and
renewable generation facilities. Our workforce is committed to
operational excellence and meeting the world’s changing power needs. Our
2016 revenues were $14 billion and we own and manage $36 billion in
total assets. To learn more, please visit www.aes.com.
Follow AES on Twitter @TheAESCorp.

Safe Harbor Disclosure

This news release contains forward-looking statements within the meaning
of the Securities Act of 1933 and of the Securities Exchange Act of
1934. Such forward-looking statements include, but are not limited to,
those related to future earnings, growth and financial and operating
performance. Forward-looking statements are not intended to be a
guarantee of future results, but instead constitute AES’ current
expectations based on reasonable assumptions. Forecasted financial
information is based on certain material assumptions. These assumptions
include, but are not limited to, our accurate projections of future
interest rates, commodity price and foreign currency pricing, continued
normal levels of operating performance and electricity volume at our
distribution companies and operational performance at our generation
businesses consistent with historical levels, as well as achievements of
planned productivity improvements and incremental growth investments at
normalized investment levels and rates of return consistent with prior
experience.

Actual results could differ materially from those projected in our
forward-looking statements due to risks, uncertainties and other
factors. Important factors that could affect actual results are
discussed in AES’ filings with the Securities and Exchange Commission
(the “SEC”), including, but not limited to, the risks discussed under
Item 1A “Risk Factors” and Item 7: Management’s Discussion & Analysis in
AES’ 2016 Annual Report on Form 10-K and in subsequent reports filed
with the SEC. Readers are encouraged to read AES’ filings to learn more
about the risk factors associated with AES’ business. AES undertakes no
obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.

Any Stockholder who desires a copy of the Company’s 2016 Annual Report
on Form 10-K dated on or about February 27, 2017 with the SEC may obtain
a copy (excluding Exhibits) without charge by addressing a request to
the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson
Boulevard, Arlington, Virginia 22203. Exhibits also may be requested,
but a charge equal to the reproduction cost thereof will be made. A copy
of the Form 10-K may be obtained by visiting the Company’s website at www.aes.com.

Contacts

The AES Corporation
Investors:
Ahmed Pasha, 703-682-6451
or
Media:
Amy
Ackerman, 703-682-6399