American Electric Power Company, Inc. · NASDAQ:AEP
American Electric Power — 51st EEI Financial Conference 2016
10 slides from American Electric Power's conference presentation, November 2016
Slide 1: 51st EEI Financial Conference
51ST EEI FINANCIAL CONFERENCE Phoenix, AZ | November 6-8, 2016
Slide 2: Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995 This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and each of its Registrant Subsidiaries believe that their expectations are
Slide 3: The Premier Regulated Energy Company
THE PREMIER REGULATED ENERGY COMPANY 51st EEI Financial Conference | aep.com 2
Slide 4: Doing What We Said
DOING WHAT WE SAID Completed strategic Reinvesting Growing review of proceeds regulated competitive wisely businesses assets 51st EEI Financial Conference | aep.com 3
Slide 5: AEP Going Forward
AEP GOING FORWARD Well positioned Growing Earnings as a regulated dividend growth rate business consistent 5-7% with earnings 51st EEI Financial Conference | aep.com 4
Slide 6: Before & After
BEFORE & AFTER Investor focus on competitive Resolved competitive generating assets asset concerns Questions about Increased investment in use of proceeds transmission and renewables Regulated and unregulated Regulated business model business mix Predictable earnings and higher Earnings volatility g
Slide 7: Organic Investment Opportunity Equals Increased Growth
ORGANIC INVESTMENT OPPORTUNITY EQUALS INCREASED GROWTH 2017 RESET OF BASE: $4.50 2016 Original Guidance for Regulated $3.30 4%-6% Growth Rate 0.17 2017 Regulated Earnings $3.47 Earnings from remaining G&M business 0.09 $4.25 Earnings from assets sold through Q1 2017 0.09 Midpoint of 2017 guidance $3
Slide 8: Strong, Consistent Dividend Growth
STRONG, CONSISTENT DIVIDEND GROWTH $2.50 $2.36 $2.27 $2.00 $2.15 $2.03 $1.95 $1.50 $1.00 $0.50 $0.00 2013 2014 2015 2016 2017* EPS Growth + Dividend Yield = 9% to 11% Annual Return Opportunity * Subject to Board approval 51st EEI Financial Conference | aep.com 7
Slide 9: Predictable Earnings, Higher Growth Rate
PREDICTABLE EARNINGS HIGHER GROWTH RATE BEFORE: AFTER: HYBRID MIX REGULATED BUSINESS MODEL Generation & Marketing Vertically Integrated Vertically Integrated Generation & Utilities Utilities Marketing AEP Transmission 3% Holdco 21% 16% AEP Transmission Holdco 9% 79 % Regulated 43% 97 % Regulated 51%
Slide 10: The Premier Regulated Energy Company
THE PREMIER REGULATED ENERGY COMPANY HIGHER HIGHER growth dividends MORE MORE regulated certainty 51st EEI Financial Conference | aep.com 9
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