Duke Energy Corporation (holding Company) · NYSE:DUK
Duke Energy Corporation (holding Company) — Investor Presentation (January 2020)
32 slides from Duke Energy Corporation (holding Company)'s investor presentation, Jan 9, 2020
Slide 1: Duke Energy Winter Update January 2020
Duke Energy Winter Update January 2020
Slide 2: Safe Harbor statement; Regulation G disclosure
Safe Harbor statement This presentation includes forward-looking statements within the meaning of the federal securities laws. Actual results could differ materially from such forward- looking statements. The factors that could cause actual results to differ are discussed in the Appendix herein and
Slide 3: Complementary businesses with strong growth opportunities
Complementary businesses with strong growth opportunities ELECTRIC UTILITIES 2019 ADJUSTED 2019-2023 2019 – 2023 & INFRASTRUCTURE EPS CONTRIBUTION(1) GROWTH CAPITAL ADJUSTED EPS CAGR(2) Consolidated 85% $29.0 B 4-6% 6-8% GAS UTILITIES & INFRASTRUCTURE 9% $6.0 B 5-6% COMMERCIAL RENEWABLES $2.5 B Elec
Slide 4: Highly achievable EPS growth
Highly achievable EPS growth 2020 PRIMARY GROWTH DRIVERS *ALSO ENABLES EARNINGS GROWTH INTO 2021 Electric Utilities & Infrastructure ▪ Florida multi-year rate plan and Solar BRA* ▪ Rate case activity to recover and earn on investments: ▪ DEC/DEP SC: Q2 2019 (full year effect in 2020) ▪ Indiana and K
Slide 5: Rate cases in the Carolinas support clean energy future
Rate cases in the Carolinas support clean energy future Duke Energy Duke Energy Carolinas Progress Retail revenue increase requested $291 M $464 M Return on equity requested 10.3% DUKE ENERGY CAROLINAS Equity component of capital structure 53% FILED CASE SEPT. 30, 2019 Proposed rate base(1) ~$15.5 B
Slide 6: Update on our regulatory activity
Update on our regulatory activity FILING DOCKET KEY STATUS TYPE NO. DRIVERS ▪ ROE 10.3%; 53% equity cap. structure ▪ Hearings scheduled Mar. 23, ▪ Grid investments, including AMI DUKE ENERGY NC Base Rate Case ‘20 E-7 Sub 1214 ▪ Dual fuel plant upgrades CAROLINAS filed Sep. 30, ’19 ▪ Requested new ra
Slide 7: Expanding natural gas infrastructure
Expanding natural gas infrastructure ATLANTIC COAST PIPELINE ▪ SCOTUS agreed to hear appeal of the Appalachian Trail decision; DOJ and Solicitor General joined the appeal; expect decision in Q2 2020 ▪ Hearings scheduled for Feb. 24, 2020 ▪ Work continues with Fish and Wildlife Service to resolve iss
Slide 8: Coal ash settlement provides clarity on closure method and costs
Coal ash settlement provides clarity on closure method and costs NC COAL ASH SETTLEMENT AGREEMENT ▪ NC DEQ issued order April 1 requiring low priority sites be fully excavated ▪ Settlement Agreement reached with NC DEQ and other parties represented by the Southern Environmental Law Center on Dec. 31
Slide 9: Our investor value proposition
Our investor value proposition A SOLID LONG-TERM HOLDING 4.2% ~8-10% 4 -6% DIVIDEND YIELD(1) zzz ATTRACTIVE HIGHLY WITH DIVIDEND RISK-ADJUSTED ACHIEVABLE GROWTH TOTAL SHAREHOLDER EPS GROWTH COMMITMENT(2) RETURN(3) THROUGH 2023(4) CONSTRUCTIVE JURISDICTIONS, LOW-RISK REGULATED INVESTMENTS AND BALANCE
Slide 10: Appendix
Appendix ITEM SLIDES Other supplemental information 11-12 Q3 2019 results and financial supplement 13-15 Sustainability / ESG 16-20 Upcoming events & other 21-24 DUKE ENERGY WINTER UPDATE JANUARY 2020 // 10
Slide 11: Other supplemental information
Other supplemental information DUKE ENERGY WINTER UPDATE JANUARY 2020 // 11
Slide 12: Advancing our strategic vision
Advancing our strategic vision TRANSFORM THE CUSTOMER EXPERIENCE MODERNIZE THE GENERATE EXPAND NATURAL GAS ENERGY GRID CLEANER ENERGY INFRASTRUCTURE STAKEHOLDER ENGAGEMENT EMPLOYEE ENGAGEMENT AND OPERATIONAL EXCELLENCE ARE FOUNDATIONAL TO OUR SUCCESS DUKE ENERGY WINTER UPDATE JANUARY 2020 // 12
Slide 13: Q3 2019 results and financial supplement
Q3 2019 results and financial supplement DUKE ENERGY WINTER UPDATE JANUARY 2020 // 13
Slide 14: 3Q 2019 adjusted diluted EPS summary and primary drivers
3Q 2019 adjusted diluted EPS summary and primary drivers ADJUSTED DILUTED SEGMENT RESULTS VS. PRIOR YEAR QUARTER(1) EARNINGS PER SHARE Electric Utilities & Infrastructure, +$191 M (+$0.25 per share(2)) ~7% growth ▲ Contribution from base rate changes and riders (+$0.11 per share) $4.15 ▲ Weather (+$
Slide 15: Key 2019 adjusted earnings guidance assumptions
Key 2019 adjusted earnings guidance assumptions ($ in millions) Original 2019 2019 YTD Assumptions (1) (thru 9/30/2019) Adjusted segment income/(expense)(2): Electric Utilities & Infrastructure $3,480 $2,925 Gas Utilities & Infrastructure $375 $292 Commercial Renewables $230 $139 Other ($440) ($328)
Slide 16: Sustainability / Environmental Social and Governance (ESG)
Sustainability / Environmental Social and Governance (ESG) DUKE ENERGY WINTER UPDATE JANUARY 2020 // 16
Slide 17: Working to achieve net-zero carbon emissions by 2050
Working to achieve net-zero carbon emissions by 2050 Companywide CO2 Emissions Cut CO2 emissions by at least 50% by 2030 Reduction Goals(1) Attain net-zero CO2 emissions by 2050 ✓ Exceeded 2025 reduction benchmarks agreed to by the U.S. CO2 Reductions for the Paris climate accord Already Achieve
Slide 18: Sustainability / Environmental Social and Governance (ESG)
Sustainability / Environmental Social and Governance (ESG) ▪ Targeting at least 50% reduction in carbon dioxide (CO2) emissions by 2030(1); net-zero by mid-century CARBON AND OTHER ▪ Since 2005, decreased CO2 emissions by 31%, sulfur dioxide emissions REDUCTIONS by 96% and nitrogen oxides emissions
Slide 19: Sustainability / Environmental Social and Governance (ESG)
Sustainability / Environmental Social and Governance (ESG) SAFETY – OUR NUMBER ONE PRIORITY ▪ Total Incident Case Rate (TICR) of 0.43 in 2018; one of the industry CARBON AND OTHER leaders for 4th year in a row REDUCTIONS EMPLOYEES ▪ Targeting a companywide engagement score of 76% by 2022 ▪ Named one
Slide 20: Sustainability / Environmental Social and Governance (ESG)
Sustainability / Environmental Social and Governance (ESG) ▪ Dow Jones Sustainability Index for 14 years in a row ▪ Over a decade of annual Sustainability reports CARBON AND OTHER ▪ Climate Report issued in 2018 analyzes 2-degree scenario REDUCTIONS ▪ Our 50% CO2 reduction goal is consistent with a
Slide 21: Upcoming events & other
Upcoming events & other DUKE ENERGY WINTER UPDATE JANUARY 2020 // 21
Slide 22: Upcoming events
Upcoming events Event Date 4Q 2019 Earnings Call February 13, 2020 DUKE ENERGY WINTER UPDATE JANUARY 2020 // 22
Slide 23: Investor relations contact information
Investor relations contact information BRYAN BUCKLER, VICE PRESIDENT INVESTOR RELATIONS ▪ Bryan.Buckler@duke-energy.com ▪ (704) 382-2640 CINDY LEE, DIRECTOR INVESTOR RELATIONS ▪ Cynthia.Lee@duke-energy.com ▪ (980) 373-4077 ABBY MOTSINGER, MANAGER INVESTOR RELATIONS ▪ Abby.Motsinger@duke-energy.com ▪
Slide 24: Safe harbor statement
Safe harbor statement This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on management’s beliefs and assumptions and can often be identified by
Slide 25: For additional information on Duke Energy, please visit duke-energy.com/investors
For additional information on Duke Energy, please visit: duke-energy.com/investors
Slide 26: Non-GAAP Reconciliations Winter Update 2020
Duke Energy Corporation Non-GAAP Reconciliations Winter Update 2020 Adjusted Diluted Earnings per Share (EPS) The materials for Duke Energy Corporation’s (Duke Energy) Winter Update 2020 include a discussion of adjusted diluted EPS for the quarter and year-to-date periods ended September 30, 2019 an
Slide 27: Adjusted segment income and adjusted other net loss
Adjusted segment income and adjusted other net loss are non-GAAP financial measures, as they represent reported segment income and other net loss adjusted for special items (as discussed above under Adjusted Diluted EPS). When a per share impact is provided for a segment income driver, the after-tax
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