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The AES Management Discusses Q2 2012 Results - Earnings Call Transcript

With that, I will now turn the call over to Andres.

Andres Ricardo Gluski

Thanks, Ahmed, and good morning, everyone. Thank you for joining our Second Quarter Earnings Call. Let me start by saying that I'm very pleased to announce that Tom O'Flynn will be joining us as our new CFO in September. Tom is a great addition to our management team and brings a strong combination of financial skills, senior corporate experience and extensive knowledge of the energy and infrastructure sectors. I'm looking forward to working with Tom to execute on our plans to deliver long-term value to our shareholders. I would also like to take a moment to thank Mary Wood for doing a great job as Interim CFO over the past 90 days. Once Tom is on board, Mary will resume her prior position in the finance organization as our Controller.

Now as you might have seen in our press release, we earned $0.18 of adjusted EPS for the second quarter. And although this is below last year's level, our result, year-to-date, of $0.55 are in line with our commitment to our full year guidance. Mary will walk you through the specific drivers later in this call.

Turning to Slide 3. I will provide you with an update on the strategic plan that we laid out late last year to unlock shareholder value. I will then discuss some of the key macro trends affecting the portfolio, as well as recent developments at our more significant businesses. And following Mary's review of our financial results, I will discuss our capital allocation planned for the remainder of the year.

Moving to Slide 4. And just as a reminder, our 3 strategic objectives for unlocking shareholder value are: one, optimizing capital allocation; two, growing the profitability of the existing portfolio; and three, narrowing our geographic and business focus by selling nonstrategic assets. We feel we're making good progress on executing on the strategic plans we laid out. Regarding the narrowing of our geographic focus, we have raised $800 million through asset sales, exited several non-core markets and invested most of these proceeds to strengthen our balance sheet. At the same time, we're improving the profitability of our business by cutting cost, exploiting scale in synergies and making high return investments based on our existing platforms.

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