Edison International · NYSE:EIX
Edison International — Q3 2017 Earnings Presentation
14 slides from Edison International's earnings presentation, Oct 30, 2017
Slide 1: Third Quarter 2017 Financial Results
Third Quarter 2017 Financial Results October 30, 2017
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements contained in this presentation about future performance, including, without limitation, operating results, capital expenditures, rate base growth, dividend policy, financial outlook, and other statements that are not purely historical, are forward-looking statem
Slide 3: EIX Strategy Should Produce Superior Value
EIX Strategy Should Produce Superior Value Sustained Earnings and Dividend Electric-Led Clean Energy Future Growth Led by SCE SCE Rate Base Growth Drives Earnings EIX Vision • 8.3% average annual rate base • Lead transformation of the electric growth through 2020 at request level power industry • SC
Slide 4: Third Quarter Earnings Summary
Third Quarter Earnings Summary Q3 Q3 Variance Key SCE EPS Drivers 2017 2016(*) Revenue 1,2 $ 0.18 Basic Earnings Per Share (EPS) - CPUC - Escalation 0.11 SCE $ 1.43 $ 1.34 $ 0.09 - CPUC - Other 0.05 - Other operating revenue 0.02 EIX Parent & Other 0.01 (0.05) 0.06 Higher O&M (0.01) Discontinued Ope
Slide 5: Year to Date Earnings Summary
Year to Date Earnings Summary YTD YTD Key SCE EPS Drivers 2017 2016(*) Variance Revenue 2,3,4 $ 0.31 Basic Earnings Per Share (EPS) - CPUC - Escalation 0.33 SCE $ 3.44 $ 3.21 $ 0.23 - CPUC - Other 0.02 - FERC revenue (0.06) EIX Parent & Other (0.03) (0.20) 0.17 - Other operating revenue 0.02 Lower O
Slide 6: SCE Capital Expenditure Forecast – Request Level
SCE Capital Expenditure Forecast – Request Level ($ billions) $18.5 Billion Capital Program Traditional Capital Spending: for 2017-2020 Distribution Transmission Generation • Capital expenditure forecast incorporates GRC, FERC and Grid Modernization Capital Spending: non-GRC CPUC spending Grid Moder
Slide 7: SCE Rate Base Forecast – Request Level
SCE Rate Base Forecast – Request Level ($ billions) 4-year CAGR of 8.3% Traditional Grid Modernization CPUC $34.3 • Rate base based on request levels from $31.7 2018 GRC Rebuttal Testimony $29.2 FERC $26.1 $24.9 • FERC rate base is approximately 20% of SCE’s rate base by 2020; includes Construction
Slide 8: 2017 EIX Earnings Per Share Guidance
2017 EIX Earnings Per Share Guidance 2017 Earnings Per Share Guidance Key Assumptions As of As of • SCE authorized rate base $26.1 billion July 27, 2017 October 30, 2017 • Authorized CPUC capital structure - 48% Low Mid High Low Mid High equity and 10.45% ROE EIX Basic EPS $4.13 $4.23 $4.33 $4.27 $4
Slide 9: Other Third Quarter Finance Topics
Other Third Quarter Finance Topics SCE CPUC Cost of Capital Mechanism • Filed Advice Letter for updated cost of debt and cost of preferred – total expected 2018 revenue requirement reduction of $73 million; approved by CPUC Settlement CPUC Authorized Terms Capital Structure 2017 2018-2019 Common Equ
Slide 10: Appendix
Appendix October 30, 2017 9
Slide 11: 2016 Retrospectively Adjusted EPS by Quarter
2016 Retrospectively Adjusted EPS by Quarter 20161 Q4 Q3 Q2 Q1 Earnings (loss) per share attributable to Edison International Continuing Operations SCE $4.22 $1.01 $1.34 $0.98 $0.90 Edison International Parent & Other (0.23) (0.04) (0.05) (0.11) (0.04) Discontinued Operations 0.03 0.04 (0.01) Ed
Slide 12: Earnings Non-GAAP Reconciliations
Earnings Non-GAAP Reconciliations ($ millions) Reconciliation of EIX GAAP Earnings to EIX Core Earnings Earnings Attributable to Edison International Q3 Q3 YTD YTD 2017 2016 2017 2016 SCE $465 $435 $1,121 $1,048 EIX Parent & Other 5 (14) (11) (65) Discontinued Operations − − − (1) Basic Earnings $47
Slide 13: SCE Core EPS Non-GAAP Reconciliations
SCE Core EPS Non-GAAP Reconciliations Reconciliation of SCE Basic Earnings Per Share to SCE Core Earnings Per Share Earnings Per Share Attributable to SCE 2011 2012 2013 2014 2015 2016 CAGR Basic EPS $3.33 $4.81 $2.76 $4.46 $3.06 $4.22 5% Non-Core Items Regulatory and tax items — 0.71 — — — — Write
Slide 14: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Edison International's earnings are prepared in accordance with generally accepted accounting principles used in the United States. Management uses core earnings internally for financial planning and for analysis of performance. Core earnings are also used when com