Edison International · NYSE:EIX
Edison International — Q3 2020 Earnings Presentation
15 slides from Edison International's earnings presentation, Oct 27, 2020
Slide 1: Third Quarter 2020 Financial Results
Third Quarter 2020 Financial Results October 27, 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements contained in this presentation about future performance, including, without limitation, operating results, capital expenditures, rate base growth, dividend policy, financial outlook, and other statements that are not purely historical, are forward-looking statem
Slide 3: Third Quarter Earnings Summary
Third Quarter Earnings Summary Q3 Q3 2020 2019 Variance SCE EPS Drivers2 Higher revenue $ 0.43 Basic Earnings Per Share (EPS) CPUC revenue - GRC escalation 0.25 SCE $ (0.70) $ 1.45 $ (2.15) CPUC revenue - Balancing account and other3 0.23 FERC and other operating revenue (0.05) EIX Parent & Other (0
Slide 4: SCE has strong rate base growth driven by significant electric infrastructure investment opportunities
SCE has strong rate base growth driven by significant electric infrastructure investment opportunities SCE forecasts deploying significant capital in …resulting in above industry average rate 2020–2023… base growth Capital Expenditures, $ in Billions Rate Base2,3, $ in Billions ~$21 billion 7.6% 202
Slide 5: GRC Track 1 update: Briefs submitted; CPUC action affirms commitment to maintaining original schedule
GRC Track 1 update: Briefs submitted; CPUC action affirms commitment to maintaining original schedule Primary intervenor reductions are focused on CalPA and TURN proposals would result in the following areas, which ignore key cost-of- rate base growth near range case forecast service principles Rate
Slide 6: SCE has CPUC approval or a settlement-in-principle for almost all incremental 2018–2019 wildfire mitigation costs
SCE has CPUC approval or a settlement-in-principle for almost all incremental 2018–2019 wildfire mitigation costs $ in Millions Application Approval/ Request1 Additional Information 159 Approved $476 million capital and $123 million O&M GS&RP settlement approved in April 2 505 CPUC recognized wild
Slide 7: EIX raises low end of 2020 core EPS guidance: $4.47–4.62
EIX raises low end of 2020 core EPS guidance: $4.47–4.62 Midpoint of 2020 Core Earnings Per Share Guidance Range of $4.47–4.62 Building from SCE Rate Base on 2019 Weighted Average Shares $0.30 ($0.10) ($0.41) $5.21 ($0.45) Interest related to Financial, operating, and debt issued for $4.55 fund cont
Slide 8: 2020 EIX Core Earnings Guidance Assumptions
2020 EIX Core Earnings Guidance Assumptions 2020 Assumption Additional Notes CPUC Rate Base ($ in Billions) $27.0 Return on Equity (ROE) 10.30% 2020 Cost of Capital Final Decision Equity in Capital Structure 52% 2020 Cost of Capital Final Decision FERC Rate Base ($ in Billions) $6.6 ~20% of total 20
Slide 9: Appendix
Appendix
Slide 10: Year-to-Date Earnings Summary
Year-to-Date Earnings Summary YTD YTD 2020 2019 Variance SCE EPS Drivers2 3 Test Year 2018 GRC true-up in 2019 $ (0.20) Basic Earnings Per Share (EPS) Higher revenue 1.04 CPUC revenue - GRC Escalation 0.71 SCE $ 0.90 $ 3.65 $ (2.75) 4 CPUC revenue - Balancing account and other 0.28 EIX Parent & Othe
Slide 11: Earnings Per Share Non-GAAP Reconciliations
Earnings Per Share Non-GAAP Reconciliations Reconciliation of EIX Basic Earnings Per Share Guidance to EIX Core Earnings Per Share Guidance1 2020 EPS Attributable to Edison International Low High Basic EIX EPS $1.73 $1.88 Total Non-Core Items (2.74) (2.74) Core EIX EPS $4.47 $4.62 1. EPS is calculat
Slide 12: Earnings Non-GAAP Reconciliations
Earnings Non-GAAP Reconciliations Reconciliation of EIX GAAP Earnings to EIX Core Earnings Earnings (Losses) Attributable to Edison International, $ in Millions Q3 Q3 YTD YTD 2020 2019 2020 2019 SCE $(264) $503 $336 $1,215 EIX Parent & Other (24) (32) (123) (74) Basic (Losses)/Earnings $(288) $471 $
Slide 13: EIX Core EPS Non-GAAP Reconciliations
EIX Core EPS Non-GAAP Reconciliations Reconciliation of EIX Basic Earnings Per Share to EIX Core Earnings Per Share EPS Attributable to Edison International Q3 Q3 YTD YTD 2020 2019 2020 2019 Basic EPS $(0.76) $1.36 $0.57 $3.43 Non-Core Items1 SCE 2017/2018 Wildfire/Mudslide Events claims and expense
Slide 14: Future Wildfire-Related CPUC Cost Recovery Filings
Future Wildfire-Related CPUC Cost Recovery Filings $ in Millions; Year-to-date as of September 30, 2020 Total Incremental Incremental Application Mechanism for Memorandum Account Capital Spent O&M Spent Request1 Recovery Anticipated Timeline 2020 FMA Update Breakdown: WMPMA $131 $153 FHPMA – 165 GRC
Slide 15: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Edison International's earnings are prepared in accordance with generally accepted accounting principles used in the United States. Management uses core earnings (losses) internally for financial planning and for analysis of performance. Core earnings (losses) are