AES 2Q15 Earnings Call Notes

Our countries have cyclical patterns. Things will probably improve in Brazil in 2017

“I think a lot of our countries have cyclical patterns. Right now Brazil in on the – certainly not at the peak of one of these patterns. I will remind people I think of two, three years ago. Lot of questions I would get on these calls is why wasn’t I investing more in Brazil and that we were slow. What we did at the time and continue to do today is we only invest when we see long term value. And we really see the value not quite frankly get caught in the trends. I think, you know Brazil is having a recession this year. It will probably have a flat 2017 and is expected, 2016, sorry and expected to pick up in 2017. Brazil is a big market, it is a country which has great potential and I think that us as a company of the Americas we should have a presence in Brazil.”

Elections in Argentina should be favorable either way

“looking forward what do we see? I think the elections in October, the two leading candidates either one would be favorable. I think you’ll have a gradual return to market-based pricing and a lifting of the exchange controls. So, we have a tremendous asset base in Argentina. Of course, we’re not putting any new money in at this stage, but I think we’ve handled it well and I firmly believe that within a year or two we’ll be paying dividends out of Argentina. It is basically considerably developed country and quite wealthy. So, it’s again, I think it’s probably on the rebound at this stage.”

The Brazilian government is doing the right things and making tough decisions

“I believe that the Brazilian government is doing the right things at this time and taking some very brave decisions, including cutting spending, raising interest rates and that these will have good long-term effects, but certainly they’re very tough in the short-run, but I really commend their bravery.”

We will never grow for growth’s sake

“When you mentioned asset sales, perhaps I think you’re talking about Petrobras and hydro who may be selling some assets. We certainly look at them. What I want to say is that, we will never grow for growth sake and these really have to makes sense, and they have to make sense which should they in terms of a portfolio, there have to be things which would decrease its hydro risk.”