Ameren Corporation · NYSE:AEE
Ameren — MUFG Fall Utility Day 2018
25 slides from Ameren's conference presentation, Sep 26, 2018
Slide 1: Purpose-Driven Performance
Purpose-Driven Performance MUFG Fall Utility Day Sept. 26, 2018
Slide 2: Cautionary Statements
Cautionary Statements Use of Non-GAAP Financial Measures In this presentation, Ameren has presented core earnings per share, which is a non-GAAP measure and may not be comparable to those of other companies. A reconciliation of GAAP to non-GAAP information is included in this presentation. Generally
Slide 3: Ameren Corporation Representatives
Ameren Corporation Representatives Bruce Steinke Darryl Sagel Andrew Kirk Senior Vice President, Vice President Director, Finance and and Treasurer Investor Relations Chief Accounting Officer 3 | MUFG Fall Utility Day | Sept. 26, 2018
Slide 4: Company Description and Ameren Businesses
Company Description 2.4M electric Ameren Businesses customers Fully rate-regulated electric Ameren Missouri and natural gas utility • Electric generation, transmission and distribution business, 0.9M gas and a natural gas distribution business in Missouri regulated Corporate Headquarters customers b
Slide 5: Ameren Organizational Structure and External Debt Balances
Ameren Organizational Structure and External Debt Balances1 $ in millions as of June 30, 2018 Ameren Corporation (Baa1/BBB+) Sr. Unsecured (Baa1/BBB) - $700 Commercial paper (P-2/A-2) - $506 Ameren Missouri Ameren Illinois ATXI (Baa1/BBB+) (A3/BBB+) (A2/-) Secured (A2/A) - $3,959 Secured (A1/A) - $3
Slide 6: Our Strategic Plan
Our Strategic Plan • Investing in and operating our utilities in a manner consistent with existing regulatory frameworks • Enhancing regulatory frameworks and advocating for responsible energy and economic policies • Creating and capitalizing on opportunities for investment for the benefit of our cu
Slide 7: Solid Operating Performance
Solid Operating Performance Electric rates Delivery system reliability Generating plant Strong safety performance are low has improved performance remains solid Average Residential Safety Distribution System Baseload Energy Electricity Prices1 Performance Reliability2 Center Performance Recordable L
Slide 8: Constructive Regulatory Frameworks for all Four Business Segments
Constructive Regulatory Frameworks for all Four Business Segments FERC-regulated: Formula ratemaking • Allowed ROE is 10.82%, which includes the MISO participation adder of 50 basis points Ameren • Rates reset each Jan. 1 based on forward-looking calculation with annual reconciliation Transmission •
Slide 9: Executing Our Strategy – Missouri Legislation Enacted
Executing Our Strategy – Missouri Legislation Enacted Enhancing regulatory frameworks and advocating for responsible energy and economic policies • SB 564 passed with strong bipartisan legislative support, signed into law by the governor ─ Win for customers, win for the State of Missouri and win for
Slide 10: Executing Our Strategy – Rate Base Growth Plan 2017-2022
Executing Our Strategy Rate Base Growth Plan 2017-20221 Investing in and operating our utilities in a manner Regulated Five-Year Rate consistent with existing regulatory frameworks Infrastructure Rate Base2 Base CAGR • Expect strong ~7% compound annual rate base growth from 2017 ($ Billions) through
Slide 11: Capital Investment Plan and Expected Funding Plan 2018-2022
Capital Investment Plan 2018-2022 Expected Funding Plan 2018-20221 Excludes Ameren Missouri’s incremental grid modernization and proposed wind generation investments • Cash flows from operations ─ Return on equity-financed portion of rate base ~$11 Billion of Regulated Infrastructure Investment1 ─ R
Slide 12: Financial Strategy
Financial Strategy • Strong liquidity profile ‒ $2.1 billion of combined credit under facilities maturing in Dec. 2021 • $1.1 billion Illinois credit facility ($800 million sublimit for Ameren Illinois; $500 million for Ameren Corp.) • $1.0 billion Missouri credit facility ($800 million sublimit for
Slide 13: 2018 Long-Term Debt Financings and Maturities
2018 Long-Term Debt Financings Long-term Debt Maturities Outlook and Maturities As of Aug. 31, 2018 ($ in Millions) • On Apr. 6, Ameren Missouri issued $425 million of 4.00% first mortgage bonds due 2048 $750 – Proceeds used to repay short-term debt, including short-term debt incurred to repay at ma
Slide 14: Executing Our Strategy – Proposed Wind Investment
Executing Our Strategy – Proposed Wind Investment Creating and capitalizing on opportunities for investment for the benefit of our customers and shareholders • Ameren Missouri pursuing ownership of at least 700 MWs of wind generation, ~$1 billion investment, with multiple developers ─ Proposed inves
Slide 15: Executing Our Strategy – Investing in the Energy Grid
Executing Our Strategy – Investing in the Energy Grid Creating and capitalizing on opportunities for investment for the benefit of our customers and shareholders • Expect the energy grid will be increasingly more important and valuable to our customers, the communities we serve and our shareholders
Slide 16: Summary
Summary Successfully executing our strategy Disciplined and proactive financial management • Strong liquidity profile • Strong credit metrics and capital structure • Disciplined cost management Strong long-term growth outlook • Expect 5% to 7% compound annual EPS growth from 2017 through 20222,3 • E
Slide 17: Appendix
Appendix
Slide 18: Select Regulatory Matters
Select Regulatory Matters Ameren Transmission • Second complaint case to reduce MISO’s FERC-allowed base ROE pending ─ In June 2016, ALJ recommended a 9.70% base ROE • If approved by FERC, would result in total allowed ROE of 10.20% vs. current 10.82%, both include 50 basis point adder for MISO part
Slide 19: Select Regulatory Matters, Cont'd
Select Regulatory Matters, Cont’d Ameren Illinois Natural Gas • Requested $32 million base rate increase from ICC in annual revenues using 2019 future test year – Reflects stipulation with ICC Staff and active parties on all issues • 9.87% ROE, 50% equity ratio and $1.6 billion rate base • Rate base
Slide 20: 2018 Earnings Analysis for Six Months Ended June 30
2018 Earnings Analysis for Six Months Ended June 30 1 Diluted EPS Key Earnings Variance Drivers: YTD June 2017 vs. YTD June 2018 Higher Ameren Missouri earnings $1.59 ─ Higher electric retail sales primarily due to colder winter and extremely warm early summer temperatures: ~+$0.32 $0.30 ─ Temperatu
Slide 21: 2018 EPS Guidance and Select Balance of Year Considerations
2018 EPS Guidance and Select Balance of Year Considerations • Raised 2018 diluted EPS guidance range to $3.15 to $3.351 – Reflects benefit of weather and solid execution of strategy 2018E Diluted EPS • Q3-Q4 2018 EPS compared to Q3-Q4 2017 core2 EPS3 Absence of Ameren Missouri Callaway refueling and
Slide 22: 2017 GAAP to Core Earnings Reconciliation
2017 GAAP to Core Earnings Reconciliation Three Months Ended Year Ended (in millions, except per share amounts) Sept. 30, 2017 Dec. 31, 2017 Dec. 31, 2017 GAAP Earnings / Diluted EPS $ 288 $ 1.18 $ (60) $ (0.24) $ 523 $ 2.14 Charge for revaluation of deferred taxes resulting 22 0.09 — — 22 0.09 from
Slide 23: Select Regulatory Matters
Select Regulatory Matters Missouri Public Service Commission • Senate Bill 564: http://www.senate.mo.gov/18info/pdf-bill/perf/SB564.pdf • Order passing savings from federal income tax reform to customers: Docket No. ER-2018-0362 • Order approving Renewable Choice Program agreement: Docket No. ET-201
Slide 24: Investor Relations Calendar
Investor Relations Calendar SEPTEMBER 2018 OCTOBER 2018 SUN. MON. TUES. WED. THUR. FRI. SAT. SUN. MON. TUES. WED. THUR. FRI. SAT. 2 3 4 5 6 7 8 1 2 3 4 5 6 Barclays Fireside Boston Wolfe Power Chat with Investor Conf. Conf. Dan Ford Meetings 9 10 11 12 13 14 15 7 8 9 10 11 12 13 Q3 Quiet Period Begi
Slide 25: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations ALJ – Administrative Law Judge MEEIA – Missouri Energy Efficiency Investment Act ATXI – Ameren Transmission Company of Illinois MIEC – Missouri Industrial Energy Consumers B – Billion MISO – Midcontinent Independent System Operator, Inc. CAGR – Compound annual gro