Edison International · NYSE:EIX
Edison International — Q4 2017 Earnings Presentation
15 slides from Edison International's earnings presentation, Feb 22, 2018
Slide 1: Fourth Quarter and Full Year 2017 Financial Results
Fourth Quarter and Full Year 2017 Financial Results February 22, 2018
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 state
Slide 3: Fourth Quarter Earnings Summary
Fourth Quarter Earnings Summary Q4 Q4 Variance Key SCE EPS Drivers 2017 2016 Basic Earnings Per Share (EPS)1,2 Revenue5 $0.14 - CPUC – Escalation 0.11 SCE $(0.33) $1.01 $(1.34) - CPUC – Other 0.02 EIX Parent & Other (1.34) (0.04) (1.30) - FERC revenue (0.01) Discontinued Operations 0.04 (0.04) - O
Slide 4: Full Year 2017 Earnings Summary
Full Year 2017 Earnings Summary 2017 2016 Variance Key SCE EPS Drivers Basic Earnings Per Share (EPS)1 Revenue,4,5,6 $0.45 - CPUC – Escalation 0.44 SCE $3.10 $4.22 $(1.12) - CPUC – Other 0.04 EIX Parent & Other (1.37) (0.23) (1.14) - FERC revenue (0.07) Discontinued Operations 0.03 (0.03) - Other
Slide 5: SCE Capital Expenditure Forecast
SCE Capital Expenditure Forecast ($ billions) $13.7 Billion 2018-2020 Capital Program Traditional Capital Spending: Distribution 1 Transmission Generation • Capital expenditure forecast incorporates GRC, FERC and Grid Modernization Capital Spending: non-GRC CPUC spending Grid Modernization2 GRC de
Slide 6: SCE Rate Base Forecast – Request Level
SCE Rate Base Forecast – Request Level ($ billions) Traditional Grid Modernization 3-year CAGR of 9.7% $34.6 CPUC $31.8 • Rate base based on request levels from $29.1 2018 GRC Tax Reform February Update $26.2 FERC • FERC rate base, including Construction Work in Progress (CWIP), is approximately 19%
Slide 7: SCE Rate Base Forecast Updates
SCE Rate Base Forecast Updates ($ billions) GRC Request Case 2018 2019 2020 Prior Outlook – October 2017 $ 29.2 $ 31.7 $ 34.3 Tax Reform CPUC (0.0) 0.1 0.3 FERC 0.1 0.1 Subtotal Tax Reform (0.0) 0.2 0.4 Other FERC Changes* Incentive CWIP Approval 0.2 0.3 0.5 FERC Capital Changes (0.2) (0.5) (0.6)
Slide 8: SCE Large Transmission Projects
SCE Large Transmission Projects Summary of Large Transmission Projects Remaining Investment Estimated In-Service Project Name Total Cost3 (as of Dec 31, 2017) Date West of Devers1,2 $848 million $757 million 2021 Mesa Substation1 $646 million $568 million 2022 Alberhill System $486 million $449 mill
Slide 9: 2018 Financial Assumptions
2018 Financial Assumptions ($ billions) SCE Capital Expenditures SCE Weighted Average Rate Base Distribution $3.4 Traditional $28.8 Transmission 0.6 Grid Mod 0.3 Generation 0.2 2018 Request $29.1 2018 Plan $4.2 • Based on 2018 forecasted expenditures at • FERC comprises about 20% of total rate base
Slide 10: 2018 SCE General Rate Case (GRC)
2018 SCE General Rate Case (GRC) • 2018 GRC Application (A. 16-09-001) filed September 1, 2016 • Addresses CPUC jurisdictional revenue requirement for 2018-2020 Includes operating costs and capital investment Excludes CPUC jurisdictional costs such as fuel and purchased power, cost of capital an
Slide 11: Appendix
Appendix February 22, 2018 10
Slide 12: SCE Annual Results of Operations
SCE Annual Results of Operations ($ millions) • Earning activities – revenue authorized by CPUC and FERC to provide reasonable cost recovery and return on investment • Cost-recovery activities – CPUC- and FERC-authorized balancing accounts to recover specific project or program costs, subject to rea
Slide 13: Earnings Non-GAAP Reconciliations
Earnings Non-GAAP Reconciliations ($ millions) Reconciliation of EIX GAAP Earnings to EIX Core Earnings Earnings Attributable to Edison International Q4 Q4 2017 2016 2017 2016 (*) SCE $(109) $328 $1,012 $1,376 EIX Parent & Other (436) (12) (447) (77) Discontinued Operations – 13 – 12 Basic Earnings
Slide 14: EIX Core EPS Non-GAAP Reconciliations
EIX Core EPS Non-GAAP Reconciliations Reconciliation of Edison International Basic Earnings Per Share to Edison International Core Earnings Per Share Earnings Per Share Attributable to Edison International 2015 2016 2017 CAGR Basic EPS $3.13 $4.02 $1.73 (26%) Non-Core Items SCE Write down, impairmen
Slide 15: 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