Proportional Free Cash Flow is expected to be $750 to $1,050 million, reflecting a decline due to increased environmental capital expenditures at AES Gener and IPL, which will help drive future earnings growth, and lower operating performance at DPL, primarily driven by lower PJM capacity prices and an expected transition to the market. Consolidated Net Cash Provided by Operating Activities is also expected to decline, due to higher working capital requirements in Brazil.
Table 2: 2013 Guidance and Reconciliation
Full Year 2013 Guidance
|Adjusted EPS 1||$||1.24-1.32|
|Proportional Free Cash Flow 1 (a)||$||750-1,050||M|
|Reconciling Factor 2 (b)||$||1,750-2,050||M|
|Cash Flow from Operating Activities (a + b)||$||2,500-3,100||M|
1 A non-GAAP financial measure. See “Non-GAAP Financial Measures” for definitions and reconciliations to the most comparable GAAP financial measures.
2 Primarily includes minority interest, maintenance capex and environmental capex. See Appendix for details of the reconciliation.
2012 Operating DriversIn 2012, the Company implemented a reorganization into six market-oriented Strategic Business Units (“SBUs”): US (United States), Andes (Chile, Colombia, and Argentina), Brazil, MCAC (Mexico, Central America and the Caribbean), EMEA (Europe, Middle East and Africa), and Asia.