Edison International · NYSE:EIX
Edison International — Q2 2017 Earnings Presentation
13 slides from Edison International's earnings presentation, Jul 27, 2017
Slide 1: Second Quarter 2017 Financial Results
Second Quarter 2017 Financial Results July 27, 2017
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: Second Quarter Earnings Summary
Second Quarter Earnings Summary Q2 Q2 Variance Key SCE EPS Drivers 2017 2016(*) Revenue 3,4,5 $ — Basic Earnings Per Share (EPS) - CPUC - Escalation 0.11 SCE $ 0.94 $ 0.98 $ (0.04) - CPUC - Other (0.05) EIX Parent & Other (0.09) (0.11) 0.02 - FERC revenue and other (0.06) Lower O&M 0.03 Discontinued
Slide 4: Year to Date Earnings Summary
Year to Date Earnings Summary YTD YTD 2017 2016(*) Variance Key SCE EPS Drivers Revenue 2,3,4 $ 0.13 Basic Earnings Per Share (EPS) - CPUC - Escalation 0.21 SCE $ 2.01 $ 1.88 $ 0.13 - CPUC - Other (0.02) - FERC revenue (0.06) EIX Parent & Other (0.05) (0.16) 0.11 Lower O&M 0.09 Discontinued Operatio
Slide 5: 2017 EIX Earnings Per Share Guidance
2017 EIX Earnings Per Share Guidance 2017 Earnings Per Share Guidance Key Assumptions As of As of • SCE authorized rate base $26.2 billion May 1, 2017 July 27, 2017 • Authorized CPUC capital structure - 48% Low Mid High Low Mid High equity and 10.45% ROE EIX Basic EPS $4.04 $4.14 $4.24 $4.13 $4.23 $
Slide 6: SCE Capital Expenditure Forecast – Request Level
SCE Capital Expenditure Forecast – Request Level ($ billions) $18.6 Billion Capital Program Traditional Capital Spending: for 2017-2020 Distribution Transmission Generation • Capital expenditure forecast incorporates GRC, FERC and Grid Modernization Capital Spending: non-GRC CPUC spending Grid Moder
Slide 7: SCE Rate Base Forecast – Request Level
SCE Rate Base Forecast – Request Level ($ billions) 4-year CAGR of 8.3% Traditional Grid Modernization CPUC $34.3 • Rate base based on request levels from $31.8 2018 GRC Rebuttal Testimony and 2018 $29.3 positive true-up from authorized to $26.2 forecast 2017 rate base $24.9 FERC • FERC rate base is
Slide 8: CPUC Cost of Capital
CPUC Cost of Capital 7 CPUC Adjustment Mechanism Moody’s Baa Utility Index Spot Rate Moving Average (10/1/16 – 02/01/2017) = 4.60% 100 basis point +/- Deadband 6 Rate (%) 5 4 Starting Value – 5.00% ROE fixed at ROE fixed at 10.45%, for 2017 10.30%, for 2018 independent of independent of trigger mech
Slide 9: Appendix
Appendix July 27, 2017 8
Slide 10: 2016 Retrospectively Adjusted EPS by Quarter
2016 Retrospectively 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 $0.90 Edison International Parent & Other (0.23) (0.04) (0.05) (0.11) (0.04) Discontinued Operations 0.03 0.04 (0.01) Ed
Slide 11: Earnings Non-GAAP Reconciliations
Earnings Non-GAAP Reconciliations ($ millions) Reconciliation of EIX GAAP Earnings to EIX Core Earnings Earnings Attributable to Edison International Q2 Q2 YTD YTD 2017 2016 2017 2016 SCE $307 $318 $656 $612 EIX Parent & Other (29) (36) (16) (50) Discontinued Operations − (2) − (1) Basic Earnings $2
Slide 12: SCE Core EPS Non-GAAP Reconciliations
SCE Core EPS Non-GAAP Reconciliations Reconciliation of SCE Basic Earnings Per Share to SCE Core Earnings Per Share Earnings Per Share Attributable to SCE 2011 2012 2013 2014 2015 2016 CAGR Basic EPS $3.33 $4.81 $2.76 $4.46 $3.06 $4.22 5% Non-Core Items Regulatory and tax items — 0.71 — — — — Write
Slide 13: 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