Edison International · NYSE:EIX
Edison International — Q1 2021 Earnings Presentation
18 slides from Edison International's earnings presentation, Apr 27, 2021
Slide 1: First Quarter 2021 Financial Results
First Quarter 2021 Financial Results April 27, 2021
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: SCE's wildfire mitigation execution is reducing wildfire risk
SCE’s execution of its wildfire mitigation strategy is reducing risk of wildfires associated with utility infrastructure 2021 Completed 2021 Completed Completed/Target Since 2018 Completed/Target 66% Since 2018 0/375 On Track1 1,050+ Distribution 108,000/163,000 completed 692,000+ weather stations i
Slide 4: California has continued to increase investments in wildfire suppression and prevention
California has continued to increase investments in wildfire suppression and prevention1 CAL FIRE budget support Substantial increase in Budget proposal continues along with actions to wildfire suppression budget suppression support increase staffing and to address shifting and adds focus on improve
Slide 5: EIX is well positioned for a decarbonized future
EIX is well positioned for a decarbonized future, with no coal or gas LDC exposure and high electric sales growth potential UTY1 EEI Index2 Electric-Only & No stranded asset risk with No Gas LDC Exposure 6 of 20 11 of 39 increased electrification (# of Companies) No Coal Generation No coal generat
Slide 6: Decarbonized, electrified world produces energy cost savings for households
A decarbonized, electrified world produces energy cost savings for an average household Total energy cost for an average household decreases By 2045, a greater reliance on by about one-third by 2045 electricity, combined with Annual residential household energy costs (2019$)1 population and economic
Slide 7: Significant incremental grid investments required by 2045
Significant incremental grid investments required by 2045 to serve load growth and integrate renewables and storage1 At least a third of incremental grid investment fits CAISO-wide investment required at squarely within IOU jurisdictions various voltage levels and to address CAISO-wide grid investme
Slide 8: First Quarter Earnings Summary
First Quarter Earnings Summary Q1 2021 Q1 2020 Variance Key SCE EPS Drivers2 Higher revenue3 0.05 Basic Earnings Per Share (EPS) CPUC revenue 0.02 SCE $ 0.78 $ 0.60 $ 0.18 FERC and other operating revenue 0.03 Lower O&M 0.20 EIX Parent & Other (0.10) (0.10) — Higher depreciation (0.08) Lower net fin
Slide 9: SCE capex and rate base growth driven by electric infrastructure investment
SCE has strong capex and rate base growth driven by significant electric infrastructure investment opportunities SCE forecasts deploying significant capital in …resulting in strong rate base growth over 2021–2023… two rate case cycles Capital Expenditures, $ in Billions Rate Base2,3, $ in Billions ~
Slide 10: GRC track 1 request supported by grid hardening and wildfire investments
GRC track 1 request supported by investments for grid hardening, wildfire mitigation, and electrification SCE’s request would result in 2018–2023 rate SCE requests 2021 revenue requirement base growth of 7.6% increase of ~$1.3 billion4 Rate Base CAGR, 2018–2023 2021 GRC Revenue Requirement, $ in Bil
Slide 11: Cost recovery will further strengthen balance sheet and credit metrics
Ongoing and pending cost recovery will further strengthen balance sheet and credit metrics Wildfire-related and Wildfire Insurance Applications $ in Millions Approved Application Approved Amount1 Expected recovery mechanism/timing GRC Track 2 Jan. 2021 391 Securitization of O&M and AB 1054 capital
Slide 12: SCE plans to securitize AB 1054 capex and O&M
SCE plans to securitize ~$1.6 billion of AB 1054 capex and ~$0.5 billion of O&M upon CPUC approval Steps Required to Issue Securitized Recovery Bonds $ in Millions Cost Recovery Financing Order Issue AB 1054 Total File CPUC File CPUC Recovery Capex1 O&M2 Costs Testimony Approval Testimony Approval B
Slide 13: 2017/2018 Wildfire/Mudslide Events Update
2017/2018 Wildfire/Mudslide Events Update: More than two-thirds of best estimate has been resolved Remaining expected potential losses Resolved approximately 68% of best estimate $ in Billions Settlement progress as a proportion of best estimate Best estimate of potential losses 6.2 Resolved Payment
Slide 14: Appendix
Appendix ree EI Raoon
Slide 15: SCE's 2021 General Rate Case approved in four tracks over 2021–2023
SCE’s 2021 General Rate Case will be approved in four tracks over 2021–2023 Estimated timeline for 2021 General Rate Case tracks and milestones1 Opening CPUC SCE Intervenor SCE & Reply Proposed Testimony Testimony Rebuttal Briefs Decision Track 1: 2021–2023 GRC Pending Revenue Requirement Tr
Slide 16: Earnings Non-GAAP Reconciliations
Earnings Non-GAAP Reconciliations Reconciliation of EIX GAAP Earnings to EIX Core Earnings Earnings (Losses) Attributable to Edison International, $ in Millions Q1 Q1 2021 2020 SCE $ 296 $ 219 EIX Parent & Other (37) (36) Basic Earnings $ 259 $ 183 Non-Core Items SCE 2017/2018 Wildfire/Mudslide Even
Slide 17: EIX Core EPS Non-GAAP Reconciliations
EIX Core EPS Non-GAAP Reconciliations Reconciliation of EIX Basic Earnings Per Share to EIX Core Earnings Per Share EPS Attributable to Edison International Q1 Q1 2021 2020 Basic EPS $ 0.68 $ 0.50 Non-Core Items SCE 2017/2018 Wildfire/Mudslide Events expenses (0.01) — Wildfire Insurance Fund expense
Slide 18: 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 (losses) internally for financial planning and for analysis of performance. Core earnings (losses) are