Edison International · NYSE:EIX
Edison International — Investor Presentation (October 2004)
26 slides from Edison International's investor presentation, Oct 13, 2004
Slide 1: Edison International Business Overview and Strategy
EXHIBIT 99.1 Edison John Chairman, October E.International Bryson 13,President 2004 Business and ChiefOverview Executiveand Officer Strategy Edison International
Slide 2: Forward-Looking Statements
Forward-Looking This information actions expenditures, plants International arrangements the competition Additional Certain 8-K. 2 effects presentation that of non-GAAP the of do details that inand environmental and as California not energy-related contemplated; involves its contains have other Stat
Slide 3: Edison International Organizational Structure
Southern Customers 2004 Mission (pro-forma)¹ Coal Edison Operating (as Total 1. MW) 3 Includes ofGeneration Assets Est. MWs Investments which 6/30/04) International Capital Energy California Rate Statistics: 4.6 the Owned $19.8 $6.8 $3.7 will M effect Base Holding 88% be B$3.1 B8,579 decommissioned.
Slide 4: Edison International and Balanced Business Mix
Edisonand Strong Unregulated Stable Produces flexibility 4 utility International for predictable business operating future growth —platform earnings in Balanced a large with and and Business cash large rapidly flow base Mix growing Significant of low-cost service long-term coalterritory assetsearnin
Slide 5: Our Growth Strategy
Edison Our Growth Balance We 5 expect strategy International Dividends sheet toseeks produce strength to— create total Strategy returns a balance above among peer averages
Slide 6: Substantial growth opportunities
Edison Substantial opportunities 2005 Long-term 1. 6 SeeCore Appendix International EPS compound growth in of the for$2.14¹, in unregulated GAAP —rate annual Growth an base reconciliation. increase growth anticipated businesses rate of over ofatEIX 8-12%¹ Southern 20%¹ core earnings California expec
Slide 7: Long-Term Earnings Contribution
Edison Long-Term Contribution MEHC 8% 6.5% SOURCES MORE LESS Reduction If EIX 1. 7 no See –long-term Parent earnings –12%¹ CERTAIN Appendix International 7.5%¹ CERTAIN in0& OF Earnings by G&A –EC assumed EPS 5% GROWTH Business for SCE 1.5% and growth GAAP — Growth for debt-service –to2.0% MEHC, rate
Slide 8: Dividend Balancing
Edison Dividend Balancing Maintaining Current Payout Plan With 1. 8 Seeto projected Appendix ratio International recommend annual philosophy dividends is a strong competitive 46% earnings, dividend foraof GAAP — with balance is 2005 projected centered Dividends rate the the dividend dividend reconci
Slide 9: Balance Sheet Strength
Sufficient The MEHC Expect Edison Over Excluding 1. 9 See projected the Appendix to International Capital will long maintain cash MEHC, continue term, long-term and generation fordebt SCE the EIX GAAP — toEIX Balance reduce to capital growth consolidated to capital reconciliation. Parent support deb
Slide 10: Southern California Edison Overview
Southern One 50,000 More Over 10 of4.6 than the square million California 13 largest million miles customers U.S. Edison including electric — $8 800 Overview billion utilities cities operating Service and communities Area revenues¹ 82 Population billion Kilowatt-hour Served Sales¹ (Bundled Service a
Slide 11: SCE Expected to Grow Investments
Southern SCE Expected Investments Equity California’s CPUC AB57 11 provides provides decisions component California to regulatory grow across a important large supportive atfor the Edison abase rate planned distribution, andprocurement above of political provides ofstable the expenditures the restor
Slide 12: Southern California Edison Capital Expenditures and Rate Base
Southern Capital Actual¹ 2004 2.2 1.8 1.6 1.9 1.1 0.8 0.6 1.0 Generation: Transmission: Distribution: Rate (Nominal Actual 2000 5-year Generation 9.0 9.1 Projections 14.2 13.1 12.3 11.4 10.2 9.7 1. 2. 12 See Information 8.8 9.2 Base –Appendix 2001 CAGR Forecast 2009 Expenditures Forecast California
Slide 13: Major Transmission and Distribution Investments
Southern Major ($ Transmission & Infrastructure Load New Non-Nuclear, Maintenance Among significant aging 13 Distribution Millions) Service Growth infrastructure Components the California customer conditions Connection and 6-Year 1,600 Other Replacements Spend Other of Tehachapi needing Edison 375 a
Slide 14: Southern California Edison Rate Outlook
Southern Outlook A 15 ¢/kWh 2004 Gen Trans Dist Fuel 2008 RRB CDWR …but 12.7 (0.3) (1.4) 1.0 0.9 0.1 0.2 12.2 14risk 14GRC & SAR GRC 13 the toPP for the 12 California roll-off – System 11 Net forecast 10of9 Average Edison high 8is thecost upward —Rate CDWR (SAR) pressure contracts capital and expend
Slide 15: Reasonable CPUC Regulatory Environment
Southern Reasonable CPUC forecast 2005 2006 Long-term Procurement Future Reliability 15 Cost General customer decisions and California of and solicitation regulatory established Capital Rate cost load since Case responsibility Edison the decisions attrition Energy — Regulatory are mechanisms Crisis
Slide 16: Mission Energy Holding Company Overview
Mission Before Asset MWs Fuel Coal Gas/Oil Hydro Other Percent Assets Recourse Net Midwest Homer 964 1. 2. 16 After Pro Debt MW’s Mix 9,035 Profile 18,833 318 forma 2,950 $After City Merchant sales 6,530 Energy 12.1 Generation to and MW MW Recourse 1,884 January MW Restructuring 8,579 of billion Non
Slide 17: Successful Restructuring Plan Execution
Mission Successful Continued Low Significant Current Given MEHC 17 cost the can provides long-term Energy coal hybrid reduction execution growth contribute portfolio Holding EIX system forecasts inin of earnings with meaningfully high takes the of Company aelectricity Restructuring do potentially co
Slide 18: Complete the MEHC Restructuring Plan
Mission Complete Close Pay Continually Manage Reduce flow 18 off volatility the the business overhead fuel Energy sale the “BV” reduce supply, Restructuring ofHolding the and bridge expenses leverage international emissions, financial loan Company inPlan using the risk and aftermath generation cash
Slide 19: Drivers of Even Higher Earnings
Mission Even Earnings COST Elimination Further DEBT Reduction POWER Energy Capacity 19 without REDUCTION prices: reductions Energy MARKET prices: Drivers ofofcallable the for restructuring Holding for Estimates international every inevery METRICS overhead high-cost $Company $10/kWyr 1/MWh of costs C
Slide 20: Additional Risks and Upside at MEHC
Mission Additional Contracting Consolidations, Collapse Risks Homer Illinois Credit Competes Environmental Approximately Potential New 20 generation Source and City coal Energy in future with collateral future gas for plants coal Review regulations ability $300 prices, cash mercury providing Holding
Slide 21: Edison Capital Overview
Edison $3.1 Affordable Other Renewables/Infrastructure Leases 1. 27% 8% 13% 7% 45% 21 American Billion Leases¹ Collateralized Capital Housing Airlines, —aOverview is provider MCV, by AA U.S.of Huntington orTreasuries capital Better and L/C’s Waste-to-Energy, financial services Vidalia for global pow
Slide 22: Edison Capital Flexible Investment Focus
EdisonisCapital Flexible Focus Resumed Targeting 22 growth building investing investments —vehicle on Value inthe 2004 building existing Driversto226 $250 MWmillion Renewables annuallyportfolio
Slide 23: EIX Parent Earnings Drag Reduction Actions
EIX earnings Reduction Actions The 23 Parent to of improve —drag debt Contributes at offinancial the $0.25 Parent to inefficiency Improving 2003 lowers andearnings and $0.23 Earnings liquidity indrag 2004are is forecast in process to be reduced to $0.03 in 2005
Slide 24: Edison International Value Highlights
Edison A SCE reductions Substantial Above Balanced 24balanced – aaverage International leading between across and business total reliable U.S. the growth returns mix… —company growth Value earnings andutility Highlights dividends providing… andMEHC cash flow – a Above stabilized average competitive
Slide 25: Reconciliation Appendix
Reconciliation Appendix 2004 EC Core Non SCE MEHC EIX Reported a) Decision. international reported $14 from to Slide Note: 25 Includes the 0.14 million –Holding Recurring $1.75 $0.48 MEHC. EPS 2005 6: 7: 8: GAAP retirement QUIPS 0.03 0 2005 CAGR Ratios 0.08 earnings (c) EPS c) $1.69 Outlook $1.75 (b
Slide 26: Appendix: Notes on capital and cash flows
Appendix about capital and Slide Transmission, Nuclear Additions per 26 Statements 50%–55% 9: 12: $1.5 components, The fuel, 2000 to billion calculations property one-time Distribution 2001 for of Cash as EIXincluding 2002 debt and decommissioning consolidated Flows for and plant 2003 &the Generatio
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