Pacific Gas & Electric Co. · NYSE:PCG
Pacific Gas & Electric — PG&E Corp (PCG, PCG-PA, PCG-PB, PCG-PC, PCG-PD, PCG-PE, PCG-PG, PCG-PH, PCG-PI) — Investor Presentation (May 2017)
68 slides from Pacific Gas & Electric's investor presentation, May 3, 2017
Slide 1: PG&E Corporation Business Update
[1 PG&E Corporation BUSINESS UPDATE May 3, 2017
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements contained in this slide presentation regarding PG&E Corporation’s three-year financial outlook, including without limitation 2017 guidance, 2017 items impacting comparability, 2017 equity issuance, 2017-2019 capital expenditures and rate base growth, dividend po
Slide 3: Well-positioned to Deliver Strong Returns
Well-positioned to Deliver Strong Returns A Strengthened Company Significant safety, reliability and operational improvements Improved customer satisfaction Key Advantages One of the greenest utilities in the country Constructive regulatory and policy environment Multiple infrastructure investment d
Slide 4: Agenda
Agenda A strengthened company Key advantages Robust growth profile 4
Slide 5: PG&E System At a Glance
PG&E System At a Glance 2016 Revenue Sources Pass-through ~45% General Rate Case ~45% Gas Transmission & Storage ~3% Electric Transmission ~7% California Public Utilities Commission Federal Energy Regulatory Commission Key Highlights Employees ~24,000 Californians served ~16M Net income (2016) ~$1.4
Slide 6: Safety Forms the Foundation of Operational and Financial Success
Safety Forms the Foundation of Operational and Financial Success Strong Operational and Financial Results Leadership Significant utility leadership experience on the Board and executive team Transparency Developed industry-leading public safety dashboard Incentives 50% of short-term variable compens
Slide 7: Improved Safety and Reliability: Gas Metrics
Improved Safety and Reliability Gas Metrics ~40% Reduction in Emergency Response Time(1) >99% Reduction in Leak 40% Reduction in Dig-ins(3) Backlog(2) 12,200 >99% 3.5 ~40% 2.1 52 2010 2016 2010 2016 Major Progress from 2010-2016: Achieved international certifications in gas safety excellence program
Slide 8: Improved Safety and Reliability: Electric Metrics
Improved Safety and Reliability Electric Metrics 911 Emergency Response(1) ~50% 98% 65% 2010 2016 System Average Interruption Customer Experiencing Duration Index(2) Multiple Interruptions(3) 157.2 ~30% 3.31% ~40% 109.0 2.10% 2010 2016 2010 2016 Major Progress from 2010-2016: Delivered 6 Years of re
Slide 9: Customer Satisfaction has Improved Each Year Since 2012
Customer Satisfaction has Improved Each Year Since 2012 800 J.D. Power Survey Results, 2011-2017 Gas Business 2nd Quartile Electric Business 1st Quartile 750 700 Gas Residential 4th Quartile Electric Residential 2nd Quartile 650 600 2011 2012 2013 2014 2015 2016 2017 Unwavering commitment to custome
Slide 10: Projected Strong Growth
Projected Strong Growth Ratebase ($ in B) Dividend ~6.5-7% ~60% Payout CAGR Ratio ~$39B + ~8% ~$34.4B $1.96 $1.82 2017 2019 2015 2016 2019 Ratebase Range See the Forward Looking Statements for factors that could cause actual results to differ materially from the guidance presented and underlying ass
Slide 11: Agenda
Agenda A strengthened company Key advantages Robust growth profile 11
Slide 12: Key Strengths
Key Strengths 1 One of the greenest utilities in the country 2 Constructive regulatory framework 3 California clean energy policies 4 Multiple infrastructure investment drivers 12
Slide 13: Key Strength: One of the Greenest Utilities in the Country
K E Y S T R E N G T H # 1 : O N E O F T H E G R E E N E S T U T I L I T I E S I N T H E C O U N T R Y Focused on Sustainability Nearly 2x More Carbon Free and Renewable Energy Than The U.S. Average in 2016 Shaping California Model for Energy Efficiency 69% 36% PG&E U.S. Avg RPS GHG Free *Source: US
Slide 14: Key Strength: Constructive Regulatory Framework
K E Y S T R E N G T H # 2 : C O N S T R U C T I V E R E G U L A T O R Y F R A M E W O R K California’s Regulatory Mechanisms Revenues decoupled from sales Balancing accounts reduce cost volatility Forward-looking test year rate cases Risk-informed rate making Separate cost of capital proceeding PG&E
Slide 15: Key Strength: California Clean Energy Policies
K E Y S T R E N G T H # 3 : C A L I F O R N I A C L E A N E N E R G Y P O L I C I E S California’s Climate Goals California Greenhouse Gas Reduction Goals and Historic Emissions* Million metric tons CO2 e 600 AB 32 requires Historic Emissions California to return to 500 1990 levels by 2020 Industria
Slide 16: Electric Vehicles Present Growth Opportunities
K E Y S T R E N G T H # 3 : C A L I F O R N I A C L E A N E N E R G Y P O L I C I E S Electric Vehicles Present Growth Opportunities Projected EV Landscape 600K EVs on PG&E’s grid in 2025 if California meets zero-emission vehicles goal 4:1 Ideal ratio of EVs to public and workplace chargers to enabl
Slide 17: Key Strength: Multiple Infrastructure Investment Drivers
K E Y S T R E N G T H # 4 : M U L T I P L E I N F R A S T R U C T U R E I N V E S T M E N T D R I V E R S California Policies Drive Infrastructure Investment Safety and Reliability Enabling California’s Clean Energy Economy Gas investments (e.g., pipeline replacement, in-line inspection capability)
Slide 18: Agenda
Agenda A strengthened company Key advantages Robust growth profile 18
Slide 19: Focus Areas for Growth
Focus Areas for Growth 1 Enhance safety and reliability 2 Enable California’s clean energy economy 3 Ensure customer affordability PG&E’s operating plan provides a strong foundation for future success 19
Slide 20: Growth Focus: Enhance Safety and Reliability
G R O W T H F O C U S # 1 : E N H A N C E S A F E T Y A N D R E L I A B I L I T Y Continue to Upgrade Our System % of Gas Transmission System Piggable Annual Projected Miles of Gas Distribution Main Replacement % Penetration of Automated Switches in Urban Areas % of Urban Substations Upgraded ~65% ~
Slide 21: Growth Focus: Grid Modernization Requires Significant Investment
G R O W T H F O C U S # 2 : E N A B L E C A L I F O R N I A ’ S C L E A N E N E R G Y E C O N O M Y Grid Modernization Will Require Significant Investment Grid Control and Monitoring Increased remote control and sensor technology reduce outages and enable self-healing grid Distributed Energy Resourc
Slide 22: Growth Focus: Ensure Customer Affordability
G R O W T H F O C U S # 3 : E N S U R E C U S T O M E R A F F O R D A B I L I T Y PG&E Bills Lower Than the National Average PG&E Average Residential Bills Are PG&E’s Electric Bundled Rates Have 30% Below National Average Grown In Line With Inflation $200 20.0¢ USA $150 ~30% 16.0¢ 12.0¢ $100 8.0¢ $5
Slide 23: Strategies to Manage Declining Load
G R O W T H F O C U S # 3 : E N S U R E C U S T O M E R A F F O R D A B I L I T Y Strategies to Manage Declining Load Flexible Electric Portfolio ~40% of procured MWhs under no contractual obligations in 2021 Utility-Owned Generation Procured ~45% ~55% Constructive Regulatory Mechanisms Revenues dec
Slide 24: Well-Positioned for Industry Changes
G O I N G F O R W A R D Well-Positioned for Industry Changes Industry Changes Decarbonized Economy Customer Choice PG&E Strategies Integrate renewables and distributed energy resources Enable electric vehicle adoption Expand energy storage options Enhance energy efficiency programs Flexible procurem
Slide 25: Three-year Financial Outlook
Three-year Financial Outlook 1 Cap ex growth 2 Ratebase growth 3 Dividend growth and policy 25
Slide 26: Robust Cap Ex Supports Strong Returns
Robust Cap Ex Supports Strong Returns Capital Expenditures ($ in B) 2017-2019 ~$6B ~$6B ~$6B 2017 2018 2019 General Rate Case Gas Transmission & Storage Electric Transmission Owner Range See the Forward Looking Statements for factors that could cause actual results to differ materially from the guid
Slide 27: Ratebase Supports Strong Returns
Ratebase Supports Strong Returns Weighted Average Ratebase ($ in B) 2017-2019 ~6.5-7% CAGR ~$39B ~$37B ~$34.4B 2017 2018 2019 General Rate Case Gas Transmission & Storage Electric Transmission Owner Range Base Case Assumptions: 2017 General Rate Case settlement through 2019 2015 Gas Transmission & S
Slide 28: Dividend Policy Supports Strong Total Shareholder Return
Dividend Policy Supports Strong Total Shareholder Return + ~8% ~60% Payout Ratio $1.96 $1.82 2015 2016 2019 Targeting 55-65% payout ratio over time See the Forward Looking Statements for factors that could cause actual results to differ materially from the guidance presented and underlying assumptio
Slide 29: In Summary: Solid Growth Strategy Positions PG&E for Success
I N S U M M A R Y Solid Growth Strategy Positions PG&E for Success A Strengthened Company Significant safety, reliability and operational improvements Improved customer satisfaction Key Advantages One of the greenest utilities in the country Constructive regulatory and policy environment Multiple in
Slide 30: Appendices
[1 PG&E Corporation Appendices
Slide 31: Table of Contents
Table of Contents Appendix 1: Q1 2017 Earnings Results and 2017 Guidance Slides 32 – 37 Appendix 2: Q1 2017 Supplemental Earnings Materials Slides 38 – 48 Appendix 3: Supplemental Material on Tax Reform Slide 49 Appendix 4: Leadership Bios Slides 50 – 56 Appendix 5: Overview of Key Regulatory Cases
Slide 32: Q1 2017 Earnings Results
A P P E N D I X 1 – Q 1 2 0 1 7 E A R N I N G S R E S U L T S A N D 2 0 1 7 G U I D A N C E Q1 2017 Earnings Results Earnings EPS (millions) Earnings on a GAAP basis $ 576 $ 1.13 Items Impacting Comparability Pipeline related expenses 16 0.03 Legal and regulatory related expenses 2 0.00 Fines and pe
Slide 33: Q1 2017: Quarter over Quarter Comparison
A P P E N D I X 1 – Q 1 2 0 1 7 E A R N I N G S R E S U L T S A N D 2 0 1 7 G U I D A N C E Q1 2017: Quarter over Quarter Comparison Earnings per Share from Operations $1.20 $ 0.05 $ 0.03 $0.06($ 0.03) $1.00 $ 0.15($0.02) $0.80 $0.60 $1.06 $0.40 $0.82 $0.20 $0.00 Q1 2016 EPS from Timing of 2015 Tax
Slide 34: 2017 Earnings Per Share Guidance
A P P E N D I X 1 – Q 1 2 0 1 7 E A R N I N G S R E S U L T S A N D 2 0 1 7 G U I D A N C E 2017 Earnings Per Share Guidance as of May 2, 2017 Low High Estimated EPS on a GAAP Basis $ 3.57 $ 3.82 Estimated Items Impacting Comparability Pipeline related expenses 0.14 0.09 Legal and regulatory related
Slide 35: 2017 Assumptions
A P P E N D I X 1 – Q 1 2 0 1 7 E A R N I N G S R E S U L T S A N D 2 0 1 7 G U I D A N C E 2017 Assumptions as of May 2, 2017 Capital Expenditures ($ millions) 2017 General Rate Case 3,900 Gas Transmission and Storage 1,000 Transmission Owner 18 1,100 Total Cap Ex ~$6 billion Authorized Ratebase (w
Slide 36: 2017 Items Impacting Comparability
A P P E N D I X 1 – Q 1 2 0 1 7 E A R N I N G S R E S U L T S A N D 2 0 1 7 G U I D A N C E 2017 Items Impacting Comparability as of May 2, 2017 ($ millions, pre-tax) 2017 Pipeline related expenses (1) 80 - 125 Legal and regulatory related expenses ~ 10 Fines and penalties (2) ~ 60 Butte fire relate
Slide 37: 2017 Equity Issuance
A P P E N D I X 1 – Q 1 2 0 1 7 E A R N I N G S R E S U L T S A N D 2 0 1 7 G U I D A N C E 2017 Equity Issuance as of May 2, 2017 ~$800M $400 - 600M 2016 2017 - San Bruno Penalty - GT&S Capital Disallowance + Capital Expenditures March 31, 2017 shares outstanding: ~511 million See the Forward Looki
Slide 38: Table of Contents: 2017 Supplemental Earnings Materials
A P P E N D I X 2 – Q 1 2 0 1 7 S U P P L E M E N T A L E A R N I N G S M A T E R I A L S Table of Contents—2017 Supplemental Earnings Materials Exhibit A: Reconciliation of PG&E Corporation’s Consolidated Income Available Slides 39-40 for Common Shareholders in Accordance with GAAP to Earnings from
Slide 39: Exhibit A: Reconciliation of GAAP Income to Earnings from Operations (1 of 2)
A P P E N D I X 2 – Q 1 2 0 1 7 S U P P L E M E N T A L E A R N I N G S M A T E R I A L S Exhibit A: Reconciliation of PG&E Corporation’s Consolidated Income Available for Common Shareholders in Accordance with Generally Accepted Accounting Principles (“GAAP”) to Earnings from Operations Page 1 of 2
Slide 40: Exhibit A: Reconciliation of GAAP Income to Earnings from Operations (2 of 2)
A P P E N D I X 2 – Q 1 2 0 1 7 S U P P L E M E N T A L E A R N I N G S M A T E R I A L S Exhibit A: Reconciliation of PG&E Corporation’s Consolidated Income Available for Common Shareholders in Accordance with Generally Accepted Accounting Page 2 of Principles 2 (“GAAP”) to Earnings from Operations
Slide 41: Exhibit B: Key Drivers of EPS from Operations
A P P E N D I X 2 – Q 1 2 0 1 7 S U P P L E M E N T A L E A R N I N G S M A T E R I A L S Exhibit B: Key Drivers of PG&E Corporation’s Earnings per Common Share (“EPS”) from Operations First Quarter, 2017 vs. 2016 ($/Share, Diluted) First Quarter 2016 EPS from Operations (1) $ 0.82 Timing of 2015 GT
Slide 42: Exhibit C: Operational Performance Metrics
A P P E N D I X 2 – Q 1 2 0 1 7 S U P P L E M E N T A L E A R N I N G S M A T E R I A L S Exhibit C: Operational Performance Metrics Meets YTD First Quarter 2017 Q1 Actual EOY Target Target (1) Safety (includes both public and employee safety metrics) Nuclear Operations Safety Unit 1 Performance Ind
Slide 43: Definitions of 2017 Operational Performance Metrics
A P P E N D I X 2 – Q 1 2 0 1 7 S U P P L E M E N T A L E A R N I N G S M A T E R I A L S Definitions of 2017 Operational Performance Metrics from Exhibit C Safety Public and employee safety are measured in four areas: (1) Nuclear Operations Safety, (2) Electric Operations Safety, (3) Gas Operations
Slide 44: Exhibit D: Sales and Sources Summary
A P P E N D I X 2 – Q 1 2 0 1 7 S U P P L E M E N T A L E A R N I N G S M A T E R I A L S Exhibit D: Pacific Gas and Electric Company Sales and Sources Summary First Quarter, 2017 vs. 2016 Three Months Ended March 31, 2017 2016 Sales from Electric Energy Deliveries (in millions kWh) 19,538 19,540 To
Slide 45: Exhibit E: 2017 EPS Guidance (1 of 2)
A P P E N D I X 2 – Q 1 2 0 1 7 S U P P L E M E N T A L E A R N I N G S M A T E R I A L S Exhibit E: PG&E Corporation’s 2017 Earnings per Share Guidance as of May 2, 2017 Page 1 of 2 2017 EPS Guidance Low High Estimated EPS on a GAAP Basis $ 3.57 $ 3.82 Estimated Items Impacting Comparability: (1) P
Slide 46: Exhibit E: 2017 EPS Guidance (2 of 2)
A P P E N D I X 2 – Q 1 2 0 1 7 S U P P L E M E N T A L E A R N I N G S M A T E R I A L S Exhibit E: PG&E Corporation’s 2017 Earnings per Share Guidance as of May 2, 2017 Page 2 of 2 (5) “Butte fire related costs, net of insurance” includes recorded legal costs of $3 million during the three months
Slide 47: Exhibit F: 2017 General Earnings Sensitivities
APPENDIX 2 – Q1 2017 SUPPLEMENTAL EARNINGS MATERIALS Exhibit F: 2017 General Earnings Sensitivities as of May 2, 2017 PG&E Corporation and Pacific Gas and Electric Company Variable Description of Change Estimated 2017 Earnings Impact Rate base +/- $100 million change in allowed rate base +/- $5 mill
Slide 48: Exhibit G: Use of Non-GAAP Financial Measures
A P P E N D I X 2 – Q 1 2 0 1 7 S U P P L E M E N T A L E A R N I N G S M A T E R I A L S Exhibit G: Use of Non-GAAP Financial Measures PG&E Corporation and Pacific Gas and Electric Company: Use of Non-GAAP Financial Measures PG&E Corporation discloses historical financial results and provides guida
Slide 49: Tax Reform Helps Affordability and Creates Potential for Future Investments
A P P E N D I X 3 – S U P P L E M E N T A L M A T E R I A L O N T A X R E F O R M Tax Reform Helps Affordability and Creates Potential for Future Investments 1. Lower Corporate Tax Rate 2. Loss of Interest Expense Deduction 3. Full Expensing of Capital Expenditures Utility Holding Company Excess def
Slide 50: Leadership Bios: Geisha J. Williams
A P P E N D I X 4 – L E A D E R S H I P B I O S Geisha J. Williams Geisha J. Williams Chief Executive Officer (CEO) and President PG&E Corporation Geisha J. Williams was elected CEO and President of PG&E Corporation, effective March 1, 2017. Williams has more than three decades of experience in the
Slide 51: Leadership Bios: Nick Stavropoulos
A P P E N D I X 4 – L E A D E R S H I P B I O S Nick Stavropoulos Nick Stavropoulos President & Chief Operating Officer Pacific Gas and Electric Company Nick Stavropoulos serves as President and Chief Operating Officer of Pacific Gas and Electric Company and has more than 35 years of experience in t
Slide 52: Leadership Bios: Anthony F. Earley, Jr.
A P P E N D I X 4 – L E A D E R S H I P B I O S Anthony F. Earley, Jr. Anthony F. Earley, Jr. Executive Chair PG&E Corporation Anthony F. Earley, Jr., is Executive Chair of the Board of PG&E Corporation. Earley joined PG&E in September 2011 as Chairman, Chief Executive Officer, and President after 1
Slide 53: Leadership Bios: Jason P. Wells
A P P E N D I X 4 – L E A D E R S H I P B I O S Jason P. Wells Jason P. Wells Senior Vice President and Chief Financial Officer PG&E Corporation Jason P. Wells is Senior Vice President and Chief Financial Officer for PG&E Corporation. Wells oversees the financial activities of the $50 billion compan
Slide 54: Leadership Bios: Patrick M. Hogan
A P P E N D I X 4 – L E A D E R S H I P B I O S Patrick M. Hogan Patrick M. Hogan Senior Vice President of Electric Operations Pacific Gas and Electric Company Patrick M. Hogan is Senior Vice President of Electric Operations at Pacific Gas and Electric Company. Hogan oversees PG&E’s electric transmi
Slide 55: Leadership Bios: Jesus Soto Jr.
A P P E N D I X 4 – L E A D E R S H I P B I O S Jesus Soto Jr. Jesus Soto Jr. Senior Vice President, Gas Operations Pacific Gas and Electric Company Jesus Soto Jr. is the Senior Vice President of Gas Operations for Pacific Gas and Electric Company. He is responsible for overseeing and executing the
Slide 56: Leadership Bios: David S. Thomason
A P P E N D I X 4 – L E A D E R S H I P B I O S David S. Thomason David S. Thomason Vice President and Controller PG&E Corporation Vice President, Chief Financial Officer and Controller Pacific Gas and Electric Company David S. Thomason is Vice President and Controller of PG&E Corporation, as well a
Slide 57: Overview of Key Regulatory Cases
A P P E N D I X 5 – O V E R V I E W O F K E Y R E G U L A T O R Y C A S E S Separate Rate Cases Maintain Focus on Specific Assets General Rate Gas Transmission Transmission Case and Storage Case Owner Case Regulatory Jurisdiction CPUC CPUC FERC Time Period of 2017-2019 2015-2017 2017 Current Rate Ca
Slide 58: 2017 CPUC General Rate Case
A P P E N D I X 5 – O V E R V I E W O F K E Y R E G U L A T O R Y C A S E S 2017 CPUC General Rate Case September 1, 2015 – Filed CPUC application requesting 2017 - 2019 revenues August 3, 2016 – Filed all-party settlement agreement February 27, 2017 – ALJ issued proposed decision (PD) adopting the
Slide 59: 2015 CPUC Gas Transmission and Storage Rate Case
A P P E N D I X 5 – O V E R V I E W O F K E Y R E G U L A T O R Y C A S E S 2015 CPUC Gas Transmission and Storage Rate Case December 1, 2016 – CPUC voted out a final Phase 2 decision consistent with proposed decision Revenue Utility Requested Phase 2 Decision Difference Requirement Revenue Revenue
Slide 60: FERC Transmission Owner Rate Case
A P P E N D I X 5 – O V E R V I E W O F K E Y R E G U L A T O R Y C A S E S FERC Transmission Owner Rate Case TO18 (2017 Revenues) July 29, 2016 – Filed TO18 with FERC requesting $1.7 billion revenue requirement, a $400 million increase over approved TO17 ROE (inclusive of 50 basis points adder) 10.
Slide 61: Distributed Resources
A P P E N D I X 5 – O V E R V I E W O F K E Y R E G U L A T O R Y C A S E S Distributed Resources Distributed Energy Resources (DER) Action Plan In December 2016, the CPUC adopted a DER Action Plan which is intended to be a roadmap to coordinate the development of DER policy across proceedings in th
Slide 62: CPUC Cost of Capital
A P P E N D I X 5 – O V E R V I E W O F K E Y R E G U L A T O R Y C A S E S CPUC Cost of Capital Structure and Cost Capital 2017 2018-19 Structure Cost Cost (1)(2) Common Equity 52% 10.40% 10.25% Preferred Stock 1% 5.60% TBD (3) Long-Term Debt 47% 5.52% TBD (3) Weighted Average Cost of Capital 8.06%
Slide 63: Electric Vehicle Infrastructure
A P P E N D I X 5 – O V E R V I E W O F K E Y R E G U L A T O R Y C A S E S Electric Vehicle Infrastructure Light Duty Electric Vehicle Infrastructure December 15, 2016 – CPUC voted out a final decision authorizing $130M of spend ($109M capital, $21M expense) Medium to Heavy-Duty Transportation Elec
Slide 64: Energy Storage
A P P E N D I X 5 – O V E R V I E W O F K E Y R E G U L A T O R Y C A S E S Energy Storage Energy Storage RFO CPUC Storage Rulemaking (R.10-12-007) established 1,325 MW target for all IOUs (580 MW target for PG&E) by 2024 with up to 50% utility ownership of transmission and distribution projects; fi
Slide 65: Residential Rate/NEM Decisions
A P P E N D I X 5 – O V E R V I E W O F K E Y R E G U L A T O R Y C A S E S Residential Rate/NEM Decisions Residential Rate Design OIR Decision The CPUC reviewed residential rate structure and issued a decision in July 2015 which: Transition from 4 to 2 tiers by 2019, with 1:1.25 ratio; Currently at
Slide 66: Breakdown of 2016 Total Revenue Requirement
A P P E N D I X 6 Breakdown of 2016 Total Revenue Requirement Revenue Requirement Component General Rate case (Distribution and Generation) Gas Transmission and Storage Electric Transmission Purchased Gas Costs Energy Resource Recovery Account Public Purpose Programs and Other 2016 Revenue Requireme
Slide 67: Description of Gas System Safety Recognition
A P P E N D I X 7 Description of Gas System Safety Recognition ISO 55001 ISO (International Organization for Standardization) 55001 enables the development of an effective asset management system so that an organization can achieve its objectives consistently and sustainably over time. ISO consists
Slide 68: Credit Metrics and Ratings
A P P E N D I X 8 Credit Metrics and Ratings Fitch Moody’s S&P Pacific Gas and Electric Company Senior Unsecured Debt A A3 BBB+ Short-term Debt F2 P-2 A-2 Outlook Stable Positive Positive PG&E Corporation Senior Unsecured Debt A- Baa1 BBB Short-term Debt F2 P-2 A-2 Outlook Stable Positive Positive 6