Southern Company (the) · NYSE:SO
Southern Company (the) — Q1 2015 Earnings Presentation
18 slides from Southern Company (the)'s earnings presentation, Apr 29, 2015
Slide 1: First Quarter 2015 Earnings Conference Call
First Quarter 2015 Earnings Conference Call April 29, 2015
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements Certain information contained in this presentation is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking information includes, among other things, statements concerning project
Slide 3: Generation Portfolio Diversity
Generation Portfolio Diversity Q1 2014 Q1 2015 Hydro/ Hydro/ Other Other Hydro/ 4% Hydro/ 5% Other Other 4% 5% Nuclear Nuclear 16% 16% Gas/Oil 34% Gas/Oil 48% Coal Coal 32% 45% Capacity Factors Quarter-to-date 2014 2015 Coal - PRB 71% 58% Coal - Non-PRB 45% 27% Gas - Combined Cycle 57% 71% 3
Slide 4: Renewables
Renewables Mississippi Power (solar PPA) Southern Power (acquisitions) • Partnering with the Navy, Strata Solar, & Hannah Solar to build 53MWs of solar • Largest utility-scale solar project in state Gulf Power (solar PPA) • 299MW Kay Wind project • Partnering with the Navy & Air Force to • 99MW Deca
Slide 5: Vogtle Construction Update
Vogtle Construction Update Unit 3 Unit 4 Progress Progress Continued CA01 module assembly Began CA20 assembly Continued Auxiliary Bldg wall & floor placements Continued 500kV switchyard upgrades Placed concrete inside CVBH to 83 ft Continued Nuclear Island wall placements Completed con
Slide 6: Vogtle Construction Activity
Vogtle Construction Activity Unit 3 – CA03 module construction Unit 4 – Condenser installation 6
Slide 7: Vogtle Regulatory Update
Vogtle Regulatory Update • Georgia PSC unanimously approved VCM 11 • Highlights from April 7th Scheduling Order for VCM 12 – Neither the certificate itself nor the Stipulation in VCM 8 should be construed as creating a cost recovery cap – Georgia Power will be allowed recovery of all prudently incur
Slide 8: Kemper Project Site
Kemper Project Site y ry es ‘ Si —e L : SouTHERN aS . COMPANY 8
Slide 9: Kemper Project Update
Kemper Project Update Expected in-service date for remainder of project is 1st half 2016 • Exceptional safety record at the site. No safety incidents during the first quarter with over 2,500 people on site • Completed 1st fire of startup burners for both gasifiers, using natural gas • Completed air
Slide 10: Q1 2015 vs. Q1 2014 Adjusted EPS Drivers
Q1 2015 vs. Q1 2014 Adjusted EPS Drivers +5¢ -3¢ -3¢ Traditional +1¢ Weather Operating $0.66 -10¢ Companies -9¢ Retail Retail Sales Revenue Wholesale Impacts Operations +1¢ -1¢ +1¢ -1¢ $0.56 Other Interest Non-fuel D&A Income & Expense Shares O&M Deductions Q1 2014 Q1 2015 Note: Excludes Q1 2014 EPS
Slide 11: Retail Sales Growth vs. Prior Year
Retail Sales Growth vs. Prior Year Quarter-to-date As Reported Weather Normal* Strong industrial sales growth led by: • Petroleum Residential -4.2% 0.2% • Stone, clay & glass Commercial -1.1% 0.7% • Transportation Industrial 1.9% 2.0% Added nearly 16,000 residential customers Total Retail Sales -1.2
Slide 12: Refining Southern Power CapEx Forecast
Refining Southern Power CapEx Forecast As of February 4 As of April 29 $1.4B $1.4B Recent Announcements • 299MW Kay Wind facility $0.6B Placeholders • 99MW Decatur (Solar) 2015 $1.4B Base • 32MW Lost Hills (Solar) $0.8B Base $1.3B $1.3B Identified projects to account for all of our original 2015 gro
Slide 13: Dividend Objective: Regular, Predictable, Sustainable
Dividend Objective: Regular, Predictable, Sustainable 270 consecutive quarters of dividends equal to or greater than the previous quarter +7¢ +7¢ (14 years of consecutive dividend increases) +7¢ +7¢ +7¢ +7¢ +7¢ +7¢ +6¢ +6¢ +6¢ +3¢ +3¢ +3¢ 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2
Slide 14: Energy Innovation Center
Energy Innovation Center • To be located in Atlanta’s Technology Square • Objective is to look for better, more reliable and more efficient ways to increase value for customers through products and services • Seeking partnerships with leading universities and other strategic partners A place where i
Slide 15: Appendix
SOUTHERN PN COMPANY SOUTHERN COMPANY [MM INVESTOR RELATIONS Appendix
Slide 16: Q2 Estimate = $0.69 per share
2015 Earnings Per Share Q2 Estimate = $0.69 per share 16
Slide 17: $16.6B Capital Expenditure Forecast
$16.6B Capital Expenditure Forecast $6.7B '15 - '17 $5.5B Total 16.6 So Power Placeholders for Growth 1.2 $4.3B Total Base 15.4 Southern Power Base 1.9 Environmental 2.2 New Generation 2.6 Transmission 1.7 Distribution 2.6 Generation Maintenance 2.5 Nuclear Fuel 0.8 2015 2016 2017 Other 1.0 Notes: T
Slide 18: 2015 – 2017 Financing Plan
2015 – 2017 Financing Plan ($ in millions) 2015 2016 2017 2015 - 2017 Issued Remaining Projected Projected Projected Total Projected Debt Issuances Georgia DOE Loan $ - $ 1,000 $ 1,000 $ 450 $ 350 $ 1,800 Mississippi Securitization $ - $ - $ - $ - $ 1,000 $ 1,000 (1) Mississippi Bank Debt $ 900 $ 35