Edison International · NYSE:EIX
Edison International — FY2016 Earnings Presentation
20 slides from Edison International's earnings presentation, Feb 21, 2017
Slide 1: Fourth Quarter and Full Year 2016 Financial Results
February 21, 2017 Fourth Quarter and Full Year 2016 Financial Results Exhibit 99.3
Slide 2: Forward-looking statements
February 21, 2017 1 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 statements. T
Slide 3: Fourth Quarter Earnings Summary
February 21, 2017 2 Q4 2016 Q4 2015 Variance Basic Earnings Per Share (EPS)1,2 SCE $1.04 $(0.25) $1.29 EIX Parent & Other (0.02) 0.03 (0.05) Discontinued Operations 0.04 (0.02) 0.06 Basic EPS $1.06 $(0.24) $1.30 Less: Non-Core Items SCE3 $ − $(1.14) $1.14 EIX Parent & Other4 − 0.04 (0.04) Discontinu
Slide 4: Full Year 2016 Earnings Summary
February 21, 2017 3 2016 2015 Variance Basic Earnings Per Share (EPS)1 SCE $4.22 $3.06 $1.16 EIX Parent & Other (0.23) (0.04) (0.19) Discontinued Operations 0.03 0.11 (0.08) Basic EPS $4.02 $3.13 $0.89 Less: Non-Core Items SCE2 $ − $(1.14) $1.14 EIX Parent & Other3 0.02 0.06 (0.04) Discontinued Oper
Slide 5: 2016 Core Earnings vs. Guidance Reconciliation
February 21, 2017 4 $0.06 $0.01 November 2, 2016 Guidance Midpoint Additional FERC Rate Base Productivity & Financing Benefits Income Taxes & Other EIX Parent & Other 2016 Core EPS 2016 Core Earnings vs. Guidance Reconciliation Note: See Earnings Non-GAAP Reconciliations and Use of Non-GAAP Financia
Slide 6: 2017 Core Earnings Per Share Guidance
February 21, 2017 5 $4.05 $4.14 (0.25)0.34 SCE 2017 EPS from Rate Base Forecast SCE Variances EIX Parent & Other EIX 2017 Core EPS Midpoint Guidance • O&M and financing benefits - $0.31 • Energy efficiency - $0.03 2017 Core Earnings Per Share Guidance – Building from SCE Rate Base • SCE authorized r
Slide 7: SCE Capital Expenditure Forecast – Request Level
February 21, 2017 6 SCE Capital Expenditure Forecast – Request Level Note: Forecasted capital spending includes CPUC, FERC and other spending. See Capital Expenditure/Rate Base Detailed Forecast for further information, including potential investment excluded in forecasts. 2021-2022 Delta reflects c
Slide 8: SCE Rate Base Forecast – Request Level
February 21, 2017 7 SCE Rate Base Forecast – Request Level CPUC • Rate base based on request levels from 2018 GRC and 2018 positive true-up from authorized to forecast 2017 rate base FERC • FERC rate base is approximately 19% of SCE’s rate base by 2020; includes Construction Work in Progress (CWIP)
Slide 9: SCE Long-Term Growth Drivers
February 21, 2017 8 SCE Long-Term Growth Drivers Description Timeframe/Regulatory Process Sustained level of infrastructure investment required until equilibrium replacement rates achieved and then maintained • Ongoing - current and future GRCs Accelerate automation, communication, and analytics cap
Slide 10: Other Finance Topics
February 21, 2017 9 Other Finance Topics CPUC Cost of Capital Settlement • MOU reached February 6 among electric and gas utilities, TURN and ORA • CPUC approval requested on February 7 via a Petition for Modification of the prior decision 2017 FERC Formula Rate Filing • SCE plans to file its 2018 fo
Slide 11: CPUC Cost of Capital Adjustment Mechanism
February 21, 2017 10 3 4 5 6 7 10/1/12 10/1/13 10/1/14 10/1/15 10/1/16 10/1/17 10/1/18 10/1/19 R at e (% ) CPUC Cost of Capital CPUC Adjustment Mechanism Moody’s Baa Utility Index Spot Rate Moving Average (10/1/16 – 02/01/2017) = 4.60% 100 basis point +/- Deadband Starting Value – 5.00% Return on Eq
Slide 12: EIX and SCE Tax Reform
February 21, 2017 11 Key Reform Considerations Impact on Customer / Shareholder Comments No interest deductibility Negative Negative • Permanent increase in customer rates (top concern) • Costs passed through but lowers tax shield Lower tax rate (15%-20%) Positive Negative at EIX holding company • L
Slide 13: Thirteen Years of Dividend Growth
February 21, 2017 12 EIX Annual Dividends Per Share $0.80 $1.00 $1.08 $1.16 $1.22 $1.24 $1.26 $1.28 $1.30 $1.35 $1.42 $1.67 $1.92 $2.17 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Note: See Use of Non-GAAP Financial Measures Thirteen Years of Dividend Growth Target dividend
Slide 14: Appendix
February 21, 2017 13 Appendix
Slide 15: SCE Large Transmission Projects
February 21, 2017 14 SCE Large Transmission Projects 1. CPUC approved 2. Presently under CPUC environmental review 3. Morongo Transmission holds an option to invest up to $400 million, or half of the estimated cost of the transmission facilities only, at the in-service date. If the option is exercis
Slide 16: SCE Results of Operations
February 21, 2017 15 $6,305 — 1,977 1,915 334 — 4,226 2,079 (525) 64 1,618 507 1,111 113 $998 $5,180 4,266 913 — — — 5,179 1 (1) — — — — — $— $11,485 4,266 2,890 1,915 334 — 9,405 2,080 (526) 64 1,618 507 1,111 113 $998 (370) $1,368 SCE Results of Operations • Earning activities – revenue authorized
Slide 17: 2016 Retroactively Adjusted EPS by Quarter
February 21, 2017 16 2016 Retroactively 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 $0.90 Edison International Parent & Other (0.23) (0.04) (0.05) (0.11) (0.04) Discontinued Operations 0.03
Slide 18: Earnings Non-GAAP Reconciliations
February 21, 2017 17 Earnings Non-GAAP Reconciliations Note: See Use of Non-GAAP Financial Measures ($ millions) Reconciliation of EIX GAAP Earnings to EIX Core Earnings SCE EIX Parent & Other Discontinued Operations Basic Earnings Non-Core Items SCE EIX Parent & Other Discontinued Operations Total
Slide 19: SCE Core EPS Non-GAAP Reconciliations
February 21, 2017 18 SCE Core EPS Non-GAAP Reconciliations Basic EPS Non-Core Items Tax settlement Health care legislation Regulatory and tax items Write down, impairment and other charges Insurance recoveries Less: Total Non-Core Items Core EPS Reconciliation of SCE Basic Earnings Per Share to SCE
Slide 20: Use of Non-GAAP Financial Measures
February 21, 2017 19 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 a