Edison International · NYSE:EIX
Edison International — Morgan Stanley Global Electricity & Energy Conference 2005
20 slides from Edison International's conference presentation, Mar 9, 2005
Slide 1: Business Overview and Strategy
Exhibit 99 Business John Chairman, Morgan MarchE.9,Bryson Stanley Overview 2005 President Annual and andStrategy Global CEO Electricity & Energy Conference
Slide 2: Forward-Looking Statements
Forward-Looking This information expenditures, changes actions the Additional Certain 8-K.operation ability continued possibility effects risks presentation of non-GAAP in ofsecurities the of prices details constructing that Edison environmental increased on and California operation ofinvolves afutu
Slide 3: Edison International: Balanced Business Mix
Edisonand Strong Unregulated Stable Significant Further Business Produces utility International upside flexibility predictable long-term business operating earnings for —earnings platform earnings future in Balanced potential a large growth and with and from and Business cash cash large rapidly powe
Slide 4: Our Strategy
Edison Our Balance We Dividends Growth expect strategy International sheet toseeks produce strength to— create total Strategy returns a balance above among peer averages
Slide 5: Edison International Balance Sheet Strength
SCE Capital $1.7 Investment Edison $300 Year-end Mission Midwest BV 1. See sale billion creditworthiness million Appendix International Capital structure –Energy Generation 2004 December grade ofofdividends unrestricted dividends dividends Holding for rebalanced ratings GAAP — refinancing 2004 resto
Slide 6: Balance Sheet Strength (cont'd)
Over YTD 2002 2003 $Billion EIX 2004 Edison $1.0 $2.3 MEHC $1.5 $1.6 1. $2.6 $4.3 $0.6 $0.7 Total $0.1 $0.4 $0.3 $0 See is consolidated Holding billion the 2005 Appendix now International Capital long-term, debt ofCo. non-utility free for debt-to-capital EIX GAAP — andBalance consolidated investment
Slide 7: Edison International Given Substantial Earnings Growth Opportunities
Edison Given Substantial Earnings Opportunities Contracting Renewables Possible Core Long-term 1. Seeearnings Appendix the International contracted improvements hybrid compound growth thein expected output the for system in generation GAAP unregulated —rate annual ofto Growth from of merchant base i
Slide 8: Long-Term Earnings Growth
Edison Reduction Utility Investments Recovery SOURCES Contribution MORE 8% 0 1.5% MEHC EIX 6.5% SCE LESS If 1. –no See 5% –Parent earnings –12%¹ CERTAIN Appendix rate International 2.0% 7.5%¹ CERTAIN of in base & OF in capacity by G&A EC assumed renewable GROWTH Business investments forand GAAP —val
Slide 9: Edison International Strong Dividend
Edison Strong Dividend Balancing Maintaining Annual Longer-term, 1. See Appendix cash International dividend philosophy dividends flow atargeting strong competitive for recently generation GAAP — with balance isacentered Dividend payout increased the dividend reconciliation. underpins sheet cash rat
Slide 10: Southern California Edison Recognized Long-Term Procurement
Southern 2005 11.4% Recognized Long-Term Approved Extension 2006 Decision Cost General return expected California 2005 ofprocurement purchased 5% Capital on Rate procurement equity trigger by Case Edison decision year-end power –decision timely —and debt –Regulatory 2005 December recovery resource –
Slide 11: Southern California Edison Capital Investment Plan
Southern $11.3 $7.6 $2.1 $1.9¹ $1.6 2003 Project Devers-Palo Mountainview SONGS 1. Seebillion GRC billion billion Appendix Update Steam California decision distribution transmission generation forecasted invested Verde planned Generating Generator for#2 supports Edison GAAP investments in Transmissi
Slide 12: Southern California Edison Rate Base Projections
Southern (Nominal D 1 $12 12.3 Transmission 13.1 Generation $14 14.2 $16 Actual Forecast 5-year 2009 2000 2001 2002 2003 2004 2005 2006 2007 2008 $0 $2 $4 $6 $8 9.2 8.8 9.0 9.1 9.7 $10 10.2 11.4 Projections 1.istribution Information CAGR California $ subject =Technology, 8%in toEdison Billions) appr
Slide 13: Mission Energy Holding Company Asset Overview
Mission Asset Before After Fuel MWs 9,035 Other Hydro Gas/Oil Coal 8,834 18,833 6,530 2,950 318 7,545 1,289 Percent Recourse Assets $12.1 72% $8.1 $6.8 88% $4.8 Midwest Homer 964 1. 2. After Pro MW MW’s billion Mix Restructuring Profile MW billion forma Restructuring City Merchant sales Energy Gener
Slide 14: Mission Energy Holding Company Restructuring Milestones
Mission Successful Significant Refinanced Collins Sale $1.2 About Further Support New of billion generation $1.7 13 lease debt for Energy of execution milestones billion Midwest contracting of reduction the termination debt Holding 14of paid international Generation of cash include: merchant the dow
Slide 15: Mission Energy Holding Company Strategy
Mission Continually Manage Reduce Build MEHC a can laddered, business overhead fuel Energy contribute reduce supply, Holding and diversified expenses leverage emissions, financial meaningfully Company inusing portfolio the risk and aftermath cash by —environmental toimproving of Strategy EIX flow po
Slide 16: Mission Energy Holding Company Earnings Estimates
Mission Even Earnings Estimates COST $45 Elimination $30 Further DEBT $105 Reduction POWER $47 Energy $75 Capacity ––without million $50 REDUCTION $145 prices: reductions Energy MARKET prices: Drivers of million of(annually) of Contribution million callable the for restructuring Holding for internat
Slide 17: Edison Capital Focus Resumed
Edison Focus Resumed $27 $23¹ New $14 million million investment on Capital growing investment of funded ofaffordable wind inthe 2005 inprojects in2004 existing 2004 ishousing targeted net closing Renewables of return at$50 $180 ofmillion portfolio capital millionof building new projects to $250 mil
Slide 18: Edison International 2005 EPS Outlook
Edison 2005 EC EIX Core Non-Core SCE MEHC Reported a) b) Write-off Anticipated 0.08 Holding $1.75 $0.11 EPS Outlook International 0.34 (0.05) EPS $2.14 Items (b) ofCo. EPS (a) $2.20 tax unamortized (0.03) settlement — 2005costs Outlook uponAs retirement Presentedofincallable Octoberdebt 13, 2004 Out
Slide 19: Appendix: Notes on Debt Ratio and Earnings Growth
Slide debt mandatory ratio, subject 2002 Slides earnings retirement Appendix 4: 5: based 6to The &from mandatory ratio, of 7: redemption. on calculation 2004 the CAGR MEHC. the including EIX debt same ranges redemption QUIPS. The ratio Debt for balance non-recourse lower the are includes excludes eq
Slide 20: Appendix: Slide Notes on Non-GAAP Measures
projected Slide Note: performance, 8: 10: GAAP The The reported calculation measurements and $1.9therefore earnings billionofincludes EIX’s management of that $2.20 equal payout capital is or 45%. ratio believes fall expenditures See into is based slide it theisnon-GAAP useful 14 on offor the $1.7 t
Edison International — Morgan Stanley Global Electricity & Energy Conference 2005 on 6ix