Edison International · NYSE:EIX
Edison International — FY2015 Earnings Presentation
22 slides from Edison International's earnings presentation, Feb 23, 2016
Slide 1: Fourth Quarter and Full Year 2015 Financial Results
February 23, 2016 Fourth Quarter and Full Year 2015 Financial Results Exhibit 99.3
Slide 2: Forward-Looking Statements
February 23, 2016 1 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 fo
Slide 3: Fourth Quarter Earnings Summary
February 23, 2016 2 Q4 2015 Q4 2014 Variance Core Earnings Per Share (EPS)1 SCE $0.89 $1.09 $(0.20) EIX Parent & Other (0.01) (0.01) – Core EPS1 $0.88 $1.08 $(0.20) Non-Core Items2 SCE $(1.14) $0.08 $(1.22) EIX Parent & Other 0.04 0.01 0.03 Discontinued Operations (0.02) 0.12 (0.14) Total Non-Core $
Slide 4: 2015 Earnings Summary
February 23, 2016 3 2015 2014 Variance Core Earnings Per Share (EPS)1 SCE $4.20 $4.68 $(0.48) EIX Parent & Other (0.10) (0.09) (0.01) Core EPS1 $4.10 $4.59 $(0.49) Non-Core Items2 SCE $(1.14) $(0.22) $(0.92) EIX Parent & Other 0.06 0.01 0.05 Discontinued Operations 0.11 0.57 (0.46) Total Non-Core $(
Slide 5: 2015 Core Earnings vs. Guidance Reconciliation
February 23, 2016 4 2015 Core Earnings vs. Guidance Reconciliation $0.08 $0.08 $0.01 $0.06 $0.05 $4.10 November 9, 2015 Guidance Midpoint Additional Rate Base Return Lower O&M Costs Financing Benefits Income Taxes & Other EIX Parent & Other Variances 2015 Core EPS • Pole Loading – Equity Portion - $
Slide 6: SCE 2016-2017 Capital Expenditure Forecast
February 23, 2016 5 • Reflects CPUC 2015 GRC decision • Includes up to 115% of capital spending for the pole loading and deteriorated poles program for 2016 and 20171 • Includes $12 million for Charge Ready pilot program in 2016 • Excludes future DRP and energy storage capital spending SCE 2016-2017
Slide 7: SCE Large Transmission Projects
February 23, 2016 6 SCE Large Transmission Projects Large Transmission Projects Tehachapi 4-11 • $2.5 billion total project cost; remaining investment $300 million • 2016-17 in service date West of Devers • $1.1 billion total project cost; remaining investment $1.0 billion • 2021 in service date; ma
Slide 8: SCE 2016-2017 Rate Base Forecast
February 23, 2016 7 SCE 2016-2017 Rate Base Forecast • Incorporates 2015 GRC final decision with bonus depreciation provision, except “rate base offset” excluded because of write off of regulatory asset related to 2012-2014 incremental tax repairs • Includes incremental rate base for the pole loadin
Slide 9: SCE Rate Base Forecast Updates
February 23, 2016 8 2015 2016 2017 Prior Outlook – November 2015 $23.0 $24.8 $26.7 Bonus Depreciation CPUC (0.0) (0.2) (0.4) FERC (0.0) (0.1) (0.3) Subtotal Bonus Depreciation (0.0) (0.3) (0.7) Incremental Pole Loading Rate Base 0.3 0.6 0.7 FERC 0.0 0.0 0.1 Total Change 0.3 0.3 0.1 Updated Outlook –
Slide 10: 2016 Core and Basic Earnings Guidance
February 23, 2016 9 • Revenues based on GRC final decision • Weighted-average 2016 rate base of $25.1 billion (see Rate Base Forecast) • Energy efficiency earnings of $0.05 per share • Authorized CPUC capital structure – 48% equity; 10.45% ROE • FERC ROE comparable to CPUC ROE • No change in tax pol
Slide 11: Twelve Years of Dividend Growth
February 23, 2016 10 EIX Annual Dividends Per Share $0.80 $1.00 $1.08 $1.16 $1.22 $1.24 $1.26 $1.28 $1.30 $1.35 $1.42 $1.67 $1.92 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Note: See use of Non-GAAP Financial Measures in Appendix Twelve Years of Dividend Growth Target dividend
Slide 12: Appendix
February 23, 2016 11 Appendix Exhibit 99.3
Slide 13: SCE Tax Memorandum Account
February 23, 2016 12 SCE Tax Memorandum Account • 2015 GRC decision established tax accounting memorandum account (TAMA), which tracks 2015 – 2017 tax benefits or costs associated with following events: - changes in tax accounting methods - changes in tax laws and regulations impacting depreciation
Slide 14: Other SCE Financial Topics
February 23, 2016 13 Other SCE Financial Topics Topic Update Comments December 31, 2015 June 30, 2015 December 31, 2014 Weighted-average equity percentage 49.9% 48.9% 48.4% Expect to remain above 48% regulatory minimum Maximum additional dividend payable to EIX $441 $215 $87 Liquidity - Short-term d
Slide 15: SCE Results of Operations
February 23, 2016 14 $6,305 — 1,977 1,915 334 — 4,226 2,079 (525) 64 1,618 507 1,111 113 $998 $5,180 4,266 913 — — — 5,179 1 (1) — — — — — $— $11,485 4,266 2,890 1,915 334 — 9,405 2,080 (526) 64 1,618 507 1,111 113 $998 $1,368 (370) $998 SCE Results of Operations • Utility earning activities – reven
Slide 16: 2015 Non-Core Items
February 23, 2016 15 Q4 2015 Q4 2014 2015 2014 SCE Write down, impairment and other charges ) GRC Decision – write-down of regulatory assets $(1.18) $(1.18) SONGS settlement $0.08) $(0.22) NEIL insurance recoveries 0.04) 0.04) –) EIX Parent and Other Edison Capital sale of affordable housing project
Slide 17: Earnings Non-GAAP Reconciliations
February 23, 2016 16 Earnings Non-GAAP Reconciliations Reconciliation of EIX Core Earnings to EIX GAAP Earnings Core Earnings SCE EIX Parent & Other Core Earnings Non-Core Items SCE EIX Parent & Other Discontinued operations Total Non-Core Basic Earnings $356 (1) $355 $24 2 39 $65 $420 $290 (3) $287
Slide 18: SCE Core EPS Non-GAAP Reconciliations
February 23, 2016 17 SCE Core EPS Non-GAAP Reconciliations Core EPS Non-Core Items Tax settlement Health care legislation Regulatory and tax items Write down, impairment and other charges Insurance recoveries Total Non-Core Items Basic EPS Reconciliation of SCE Core Earnings Per Share to SCE Basic E
Slide 19: EIX is Responding to Industry Change
February 23, 2016 18 EIX is Responding to Industry Change • Public policy and large commercial customers prioritizing sustainability objectives • Innovation facilitating conservation and self-generation • Regulation supporting new forms of competition • Flattening domestic demand for electricity • G
Slide 20: Edison Energy Focus: Commercial & Industrial
February 23, 2016 19 • Create energy services that help simplify and optimize energy needs for large commercial & industrial customers: – Help customers better assess and capture the value of energy optimization, paving the way for greater third-party energy services – Help customers manage through
Slide 21: Edison Energy: Acquired Businesses Summary
February 23, 2016 20 Edison Energy: Acquired Businesses Summary • Provides comprehensive renewable energy advisory and procurement services to leading Fortune 1000 companies, universities and municipalities • Created a proprietary market access platform where it typically procures energy for its cli
Slide 22: Use of Non-GAAP Financial Measures
February 23, 2016 21 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 internally for financial planning and for analysis of performance. Core earnings a