Ameren Corporation · NYSE:AEE
Ameren — Non-Deal Roadshow (March 2018)
29 slides from Ameren's roadshow presentation, Mar 20, 2018
Slide 1: Purpose-Driven Performance
Purpose-Driven Performance East Coast Investor Meetings March 20-21, 2018 UBS European Tour March 20-22, 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 European Meetings East Coast Meetings Warner Baxter Doug Fischer Marty Lyons Andrew Kirk Chairman, President Senior Director, Executive Vice President Manager, and Investor Relations and Investor Relations Chief Executive Chief Financial Officer Officer 3 | East Co
Slide 4: Company Description and Ameren Businesses
Company Description 2.4M electric Ameren Businesses customers Fully rate-regulated electric Ameren Missouri and gas utility • Electric generation, transmission and distribution business 0.9M gas and a natural gas distribution business in Missouri regulated Corporate Headquarters customers by MoPSC E
Slide 5: 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 6: Our Value Proposition to Investors and Customers
Our Value Proposition to Investors and Customers Strong Attractive Attractive total return long-term growth outlook dividend potential • Expect 5% to 7% compound annual EPS • Annualized equivalent dividend rate of • Attractive combined earnings growth growth from 2017 through 20221,2 $1.83 per share
Slide 7: Our Strategic Plan
Our Strategic Plan • Investing in and operating our utilities in a manner consistent with existing regulatory frameworks • Enhancing regulatory frameworks and advocating for responsible energy and economic policies • Creating and capitalizing on opportunities for investment for the benefit of our cu
Slide 8: Our Regulatory Frameworks
Our Regulatory Frameworks FERC-regulated: Formula ratemaking • Allowed ROE is 10.82%, which includes the MISO participation adder of 50 basis points Ameren • Rates reset each Jan. 1 based on forward-looking calculation with annual reconciliation Transmission • Constructive rate treatment for ATXI’s
Slide 9: Executing Our Strategy: Rate Base Growth Plan 2017-2022E
Executing Our Strategy Rate Base Growth Plan 2017-2022E1 Investing in and operating our utilities in a manner Regulated Five-Year Rate consistent with existing regulatory frameworks Infrastructure Rate Base2 Base CAGR • Expect strong ~7% compound annual rate base growth ($ Billions) from 2017 throug
Slide 10: Executing Our Strategy – Pending Missouri Legislation
Executing Our Strategy – Pending Missouri Legislation Enhancing regulatory frameworks and advocating for responsible energy and economic policies • Senate Bill 564 passed Missouri Senate Feb. 15 (25 Yes/6 No) ─ Passed Missouri House of Representatives Utilities Committee on March 14 ─ Next step is c
Slide 11: Executing Our Strategy – Pending Missouri Legislation, Cont’d
Executing Our Strategy – Pending Missouri Legislation, Cont’d Enhancing regulatory frameworks and advocating for responsible energy and economic policies • Key provisions of Senate Bill (SB) 564 and House Bill (HB) 2265 for electric utility service ─ SB 564: Defer between rate cases 85% of depreciat
Slide 12: Missouri 20-year Integrated Resource Plan Filed with MoPSC
Missouri 20-year Integrated Resource Plan Filed with MoPSC • Transitioning generation to a cleaner, more diverse portfolio in a responsible fashion ─ Preferred plan includes addition of at least 700 MWs of wind generation by 2020, representing potential ~$1 billion wind investment1 ─ Preferred plan
Slide 13: 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 in advanced negotiations with multiple wind developers for ownership of at least 700 MWs of generation, ~$1 billion investme
Slide 14: Capital Investment Plan and Expected Funding Plan 2018-2022
Capital Investment Plan 2018-2022 Expected Funding Plan 2018-20221 Excludes Ameren Missouri’s potential incremental grid modernization and proposed wind generation investments • Cash flows from operations ~$11 Billion of Regulated ─ Return on equity-financed portion of rate base Infrastructure Inves
Slide 15: Executing Our Strategy – Investing in Energy Grid
Executing Our Strategy – Investing in Energy Grid Creating and capitalizing on opportunities for investment for the benefit of our customers and shareholders • Expect energy grid will be increasingly more important and valuable to our customers, communities we serve and our shareholders ─ Investing
Slide 16: Summary
Summary Expect to deliver strong earnings growth in 2018 with guidance in a range of $2.95 to $3.15 per diluted share1 Successfully executing our strategy Strong long-term growth outlook • Expect 5% to 7% compound annual EPS growth from 2017 through 20221,2 • Expect ~7% compound annual rate base gro
Slide 17: 2018 Detailed Strategic Focus and Guidance
2018 Detailed Strategic Focus and Guidance
Slide 18: Executing Our Strategy in 2018
Executing Our Strategy in 2018 Expect 2018 diluted EPS in a range of $2.95 to $3.151 • Midpoint represents strong 7.8% growth over 2017 core EPS Diluted EPS 2017 Core1 vs. 2018 Key Focus Areas • Ameren Transmission $3.15 ─ Advance Ameren Illinois local reliability and ATXI regional multi-value proje
Slide 19: 2018 Earnings Guidance: Key Drivers and Assumptions
2018 Earnings Guidance: Key Drivers and Assumptions1 Higher average estimated rate base: ~$2.9 billion2 compared to ~$2.5 billion2 in 2017 reflecting infrastructure investments Ameren ─ FERC decision in second MISO ROE complaint case uncertain; guidance assumes 10.82% Transmission • ALJ recommended
Slide 20: 2018 Earnings Guidance: Key Drivers and Assumptions
2018 Earnings Guidance: Key Drivers and Assumptions1 Increased electric service rates for Q1 2018: ~+$0.112 Absence of scheduled Callaway refueling and maintenance outage: ~+$0.112 Return to normal weather: ~+$0.062 Ameren Lower expected interest expense driven by refinancing debt in 2017 and 2018:
Slide 21: 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 22: Select Regulatory Matters, Cont’d
Select Regulatory Matters, Cont’d Ameren Illinois Natural Gas • In Jan. 2018, requested a $49 million annual natural gas distribution rate increase from ICC; includes ~$42 million that would otherwise be recovered in 2019 under qualifying infrastructure plant (QIP) rider – Based on 10.3% ROE; 50% eq
Slide 23: Impacts of Federal Income Tax Reform
Impacts of Federal Income Tax Reform • Key utility provisions included in legislation enacted in Dec. 2017 ─ Corporate tax rate reduced to 21% from 35% beginning Jan. 1, 2018 ─ End of bonus depreciation for regulated utilities ─ Interest deductibility retained for regulated utilities ─ State and loc
Slide 24: Appendix
Appendix
Slide 25: Ameren Organizational Structure and External Debt Balances
Ameren Organizational Structure and External Debt Balances1 $ in millions as of Dec. 31, 2017 All Moody’s outlooks “Stable”; all S&P outlooks “Positive” Ameren Corporation (Baa1/BBB+) Sr. Unsecured (Baa1/BBB) - $700 Commercial paper (P-2/A-2) - $383 Ameren Missouri Ameren Illinois ATXI (Baa1/BBB+) (
Slide 26: GAAP to Core Earnings Reconciliation
GAAP to Core Earnings Reconciliation (in millions, except per share amounts) Year-Ended Dec. 31, 2016 2017 GAAP Earnings / Diluted EPS $ 653 $ 2.68 $ 523 $ 2.14 Charge for revaluation of deferred taxes resulting from — — 22 0.09 increased Illinois state income tax rate Less: Federal income tax benef
Slide 27: Select Regulatory Matters
Select Regulatory Matters Missouri Public Service Commission • Senate Bill 564: http://www.senate.mo.gov/18info/pdf-bill/perf/SB564.pdf • House Bill 2265: https://www.house.mo.gov/billtracking/bills181/hlrbillspdf/6103H.04P.pdf • 2017 Integrated Resource Plan: https://www.ameren.com/missouri/environ
Slide 28: Investor Relations Calendar
Investor Relations Calendar LATE FEBRUARY/MARCH 2018 APRIL/EARLY MAY 2018 SUN. MON. TUES. WED. THUR. FRI. SAT. SUN. MON. TUES. WED. THUR. FRI. SAT. Feb. 25 26 27 28 Mar. 1 2 3 Apr. 1 2 3 4 5 6 7 Morgan Stanley & BAML Barclays Conf. Conf. 4 5 6 7 8 9 10 8 9 10 11 12 13 14 UBS Q1 Quiet Chicago Period,
Slide 29: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations ALJ – Administrative Law Judge kW - Kilowatt ATXI – Ameren Transmission Company of Illinois M – Million B – Billion MEEIA – Missouri Energy Efficiency Investment Act CAGR – Compound annual growth rate MISO – Midcontinent Independent System Operator, Inc. CCN – Cer