Slide 1: Lead Today. Transform Tomorrow. Second Quarter 2017 Earnings
Lead Today. Transform Tomorrow. Second Quarter 2017 Earnings Aug. 4, 2017
Slide 2: Cautionary Statements
Cautionary Statements Use of Non-GAAP Financial Measures In this presentation, Ameren has presented core earnings guidance, 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 on the slide where the non-GAAP
Slide 3: Business Update
Business Update Warner Baxter Chairman, President and Chief Executive Officer, Ameren Corp.
Slide 4: Earnings and Guidance Summary
2017 Earnings and Guidance Summary Core Diluted EPS Guidance Range of • Expect to deliver 2017 core earnings within a range of $2.70 $2.70 EPS to $2.90 per diluted share,1 a $0.05 improvement over prior to $2.901 2016 vs. 2017 guidance $1.21 • Key Q2 Earnings Variance Drivers $1.04 New Ameren Missou
Slide 5: Business Update
Business Update Our Strategic Plan Capital Expenditures YTD June 30, 2017 • Investing in and operating our utilities in a manner consistent with ($ Millions) existing regulatory frameworks • Enhancing regulatory frameworks and advocating for responsible energy and economic policies $157 • Creating a
Slide 6: Business Update, cont’d
Business Update, cont’d Executing Our Strategic Plan, cont’d • Ameren Missouri ─ New electric service rates took effect April 1 ─ Missouri General Assembly did not pass legislation this year that would have improved the electric utility regulatory framework; however, made progress including: • Const
Slide 7: Executing Our Strategy in 2017 and Beyond
Executing Our Strategy in 2017 and Beyond 2016 to 2021E Regulated • Expect energy grid will be increasingly more important and Infrastructure Rate Base valuable to our customers, communities we serve and our shareholders 100% ─ Investing to modernize electric and gas transmission and distribution 13
Slide 8: Long-Term Total Return Outlook
Long-Term Total Return Outlook 2016 to 2021E Regulated 5-Yr Rate Executing Our Strategy in 2017 and Beyond Infrastructure Rate Base3 Base CAGR ─ Expect ~6% compound annual rate base growth ($ Billions) from 2016 through 20211 • Sustainable infrastructure investment pipeline for % of benefit of custo
Slide 9: Financial Update
Financial Update Marty Lyons Executive Vice President and Chief Financial Officer, Ameren Corp.
Slide 10: 2017 Second Quarter Earnings Analysis
2017 Second Quarter Earnings Analysis EPS Q2 2016 vs. Q2 2017 Key Earnings Variance Drivers: Higher Ameren Missouri earnings ─ New electric service rates: +$0.11 $0.79 ─ Absence of 2016 Callaway Energy Center refueling and maintenance $0.14 outage expenses: +$0.07 $0.61 $0.02 ─ Lower electric retail
Slide 11: 2017 EPS Guidance and Select Balance of Year Considerations
2017 EPS Guidance and Select Balance of Year Considerations • 2017 GAAP diluted EPS guidance range reaffirmed at $2.65 to $2.85 – Includes expected Q3 non-core, non-cash charge, primarily at Ameren Parent, for revaluation of deferred taxes resulting from increase in Illinois income tax rate effectiv
Slide 12: 2017 Long-Term Debt Financings
2017 Long-Term Debt Financings • On June 15, Ameren Missouri issued $400 million of 2.95% Ameren Credit Ratings1 senior secured notes due 2027 Moody's S&P ─ Proceeds applied to repay $425 million of 6.4% senior secured Ameren Corporation notes • Issuer Baa1 BBB+ • ATXI agreed to privately place $450
Slide 13: Select Regulatory Matters
Select Regulatory Matters Ameren Illinois electric distribution service • $17 million net revenue requirement decrease filed with ICC in annual formula rate update – Consistent with ICC Staff recommendation – ICC order expected in Dec. 2017 with new rates effective in Jan. 2018 Ameren Transmission s
Slide 14: Summary
Summary Expect to deliver 2017 core earnings within a range of $2.70 to $2.90 per diluted share1 Successfully executing our strategy Strong long-term growth outlook • Expect 5% to 8% compound annual EPS growth from 2016 through 20202,3 • Expect 6% compound annual rate base growth from 2016 through 2
Slide 15: Appendix
Appendix
Slide 16: Company Description: 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 17: 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 18: 2017 Earnings Analysis for Six Months Ended June 30
2017 Earnings Analysis for Six Months Ended June 30 EPS YTD 2016 vs. YTD 2017 Key Earnings Variance Drivers: $1.21 Higher Ameren Illinois Electric Distribution earnings ─ 2017 change in timing of interim period revenue recognition reflecting Future Energy $1.04 Jobs Act, which decoupled revenues fro
Slide 19: Constructive Missouri Electric Rate Review
Constructive Missouri Electric Rate Review Unanimous Stipulation and Agreement approved by MoPSC • Increases annual base electric revenue requirement by $92 million ─ Removes negative effect of lower sales to New Madrid smelter • Decreases base level of net energy costs by $54 million annually, excl
Slide 20: Pending 2017 Illinois Electric Formula Rate Update
Pending 2017 Illinois Electric Formula Rate Update Illinois electric distribution service RATE UPDATE • $17 million net revenue requirement decrease filed with ICC in annual formula SCHEDULE: rate update consisting of: Sep. 7-8, 2017 – $29 million increase to reflect 2016 recoverable costs and expec
Slide 21: Regional Multi-Value Projects: Significant FERC-Regulated Transmission Investment
Regional Multi-Value Significant FERC-Regulated Projects Transmission Investment • Planned $2.8 billion investment – 2017-20211 ─ $0.6 billion of regional multi-value projects at ATXI ─ $2.2 billion of local reliability and connecting portions of regional multi-value projects at Ameren Illinois • To
Slide 22: Select Regulatory Matters
Select Regulatory Matters Missouri Public Service Commission • Working proceeding regarding emerging issues: Docket No. EW-2017-0245 • Website: https://www.efis.psc.mo.gov/mpsc/DocketSheet.html Illinois Commerce Commission • Pending electric distribution rate update: Docket No. 17-0197 • Proceeding
Slide 23: Investor Relations Calendar
Investor Relations Calendar AUGUST 2017 SEPTEMBER 2017 SUN. MON. TUES. WED. THUR. FRI. SAT. SUN. MON. TUES. WED. THUR. FRI. SAT. 1 2 3 4 5 1 2 Q2 Quiet Q2 2017 Period, Earnings continued Release 6 7 8 9 10 11 12 3 4 5 6 7 8 9 Barclays Power Conf. 13 14 15 16 17 18 19 10 11 12 13 14 15 16 Barclays Mi
Slide 24: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations ALJ – Administrative Law Judge MoPSC – Missouri Public Service Commission ATXI – Ameren Transmission Company of Illinois MW – Megawatt B – Billion OPEB – Other Post-Employment Benefits CAGR – Compound annual growth rate ROE – Return on Equity CCN – Certificate of