Exelon Corporation · NASDAQ:EXC
Exelon — Q4 2022 Earnings Presentation
52 slides from Exelon's earnings presentation, Feb 14, 2023
Slide 1: Earnings Conference Call Fourth Quarter 2022
February 14, 2023 Earnings Conference Call Fourth Quarter 2022
Slide 2: Cautionary Statements Regarding Forward-Looking Information
2 Cautionary Statements Regarding Forward-Looking Information This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. Words such as “could,” “may,” “expects,” “anticipates,”
Slide 3: Non-GAAP Financial Measures
3 Non-GAAP Financial Measures Exelon reports its financial results in accordance with accounting principles generally accepted in the United States (GAAP). Historical results were revised from amounts previously reported to reflect only Exelon continuing operations. Exelon supplements the reporting
Slide 4: Exelon is Powering a Cleaner and Brighter Future
4 Exelon is Powering a Cleaner and Brighter Future Exelon’s T&D platform is leading the energy transformation, creating value for customers and communities, and supports a projected risk-adjusted ~9-11% total return(1) for shareholders ❖ Delivering Customer Value ❖ Strengthening Our Infrastructure ❖
Slide 5: Key Messages
5 Key Messages Financial and Operational Excellence Rate Case Execution Long-Term Outlook Updates • Earned $2.27 per share in 2022, beating guidance(1) by $0.02 per share - ~8% growth off 2021 guidance midpoint(2) • Projecting 2023 dividend of $1.44 per share(3) – ~7% growth off 2022 dividend paid •
Slide 6: 2022 Highlights
• Employees volunteered 126,500 hours and donated $6.7M • Operated more than 75 workforce development programs across our 6 utilities • Connected income-eligible customers to ~$590M of financial assistance, a ~25% increase from 2021 • Funded $22M to support schools and students across company-sponso
Slide 7: Operating Highlights
7 Operating Highlights Quartile Q1 Q2 Q3 Q4 Operations Metric 2022 BGE ComEd PECO PHI Electric Operations OSHA Recordable Rate(1) 2.5 Beta SAIFI (Outage Frequency)(2) 2.5 Beta CAIDI (Outage Duration)(3) Customer Operations Customer Satisfaction(4) Gas Operations Gas Odor Response(5) No Gas Operation
Slide 8: 2022 Financial Results
8 2022 Financial Results Fourth Quarter 2022 EPS Results $0.21 $0.21 $0.09 $0.09 $0.10 $0.10 $0.11 $0.12 ($0.08) Q4 GAAP Earnings ($0.09) $0.43 Q4 Adjusted Operating Earnings* $0.43 Note: amounts may not sum due to rounding (1) 2022 earnings guidance based on expected average outstanding shares of 9
Slide 9: Exelon's Annual Earned Operating ROEs
9 Exelon’s Annual Earned Operating ROEs* 9.5% 9.4% 9.6% 10.0% 8.7% 9.2% 9.4% 2022202020182016 20192017 2021 Note: Represents the twelve-month periods December 31, 2016-2022 for Exelon’s utilities (excludes Corp). Earned operating ROEs* represent weighted average across all lines of business (Electri
Slide 10: 2023 Adjusted Operating Earnings Guidance
10 2023 Adjusted Operating Earnings* Guidance Key Year-over-Year DriversAdjusted Operating Earnings* Guidance(1) Incremental investments in utility infrastructure Discontinued operations adjustment not applicable in post-separation results BGE and PHI MYP 1 reconciliation in process Return to normal
Slide 11: Customer Needs and Industry Trends Continue to Support Investment Growth
11 Customer Needs and Industry Trends Continue to Support Investment Growth $22.9B $26.0B $26.7B $29.0B $20.8B $6.7B $3.9B 2021 - 2024E2019 - 2022E 2023 - 2026E2020 - 2023E $31.3B 2022 - 2025E … and translates to higher rate base(2) growth 4-year capital investment(1) profile drives benefits for our
Slide 12: Managing Costs Well Below the Rate of Inflation
12 Managing Costs Well Below the Rate of Inflation $ in millions ❖ Exelon is well positioned to manage inflationary pressures • Working with business partners to mitigate price increases and avoid long lead times through negotiations, utilizing alternative suppliers, and purchasing in bulk • World-c
Slide 13: Advancing an Equitable Transition to Cleaner Energy in Illinois
13 Advancing an Equitable Transition to Cleaner Energy in Illinois Proposed investments at ComEd help ensure the safety, resiliency and security of the grid while meeting the demands of evolving customer needs – all with a focus on equity and affordability Key Priorities, Provisions and Goals of the
Slide 14: Advancing an Equitable Transition to Cleaner Energy in Maryland
14 Advancing an Equitable Transition to Cleaner Energy in Maryland Proposed investments at BGE help ensure the safety, reliability, and resiliency of our systems while meeting the demands of evolving customer needs – all with a focus on setting a foundation for the utility of the future Key Prioriti
Slide 15: Long-Term Earnings Growth Supports Sustainable Dividend
Long-Term Earnings Growth Supports Sustainable Dividend 15 Targeting 6-8% Operating Earnings* CAGR from 2022 - 2026(1)(5) Note: amounts may not sum due to rounding (1) Includes after-tax interest expense associated with debt held at Corporate. (2) Reflects 2022 original earnings guidance based on ex
Slide 16: Key Modeling Drivers and Assumptions
16 Key Modeling Drivers and Assumptions 2023 2024 2025 2026 OpCo Drivers(1) YoY EPS Drivers(1) YoY EPS Drivers(1) YoY EPS Drivers(1) YoY EPS BGE Gas and electric MYP 1 year 3 rates, MYP 1 reconciliation (2021 and 2022), and transmission, offset by MYP 1 regulatory lag Gas and electric MYP 2 year 1 r
Slide 17: Maintaining a Strong Balance Sheet is a Top Financial Priority
17 Maintaining a Strong Balance Sheet is a Top Financial Priority S&P FFO / Debt %* and Moody’s CFO (Pre-WC) / Debt %* Credit Ratings(4) ExCorp ComEd PECO BGE ACE DPL Pepco Moody’s Baa2 A1 Aa3 A3 A2 A2 A2 S&P BBB A A A A A A Fitch BBB A A+ A A A A 14% 0% 12% 13% 15% 2023-2026E Average(1,2) 12% Exelo
Slide 18: 2023 Business Priorities and Commitments
18 2023 Business Priorities and Commitments Focused on continued execution of operational, regulatory, and financial priorities to build on the strength of Exelon’s value proposition as the premier T&D utility ❖Maintain industry-leading operational excellence ❖ Achieve constructive rate case outcome
Slide 19: Appendix
Appendix exelon
Slide 20: Delivering Sustainable Value as the Premier T&D Utility
20 Delivering Sustainable Value as the Premier T&D Utility Industry-Leading Platform Leading ESG Profile Operational Excellence Financial Discipline Sustainable Value SUSTAINABLE VALUE ✓ Strong Growth Outlook: ~$31.3B of T&D capital from 2023-2026 to meet customer needs, resulting in expected rate b
Slide 21: Utility Capex and Rate Base vs. Previous Disclosures
21 Utility Capex and Rate Base vs. Previous Disclosures Q4 2022 Capital Expenditures ($M) Q4 2022 Rate Base ($B) Analyst Day 2022 Capital Expenditures ($M) Analyst Day 2022 Rate Base ($B) 4,525 4,650 4,875 4,850 1,500 1,525 1,600 1,725 875 900 975 950 7,100 2023E 7,500 2022E 2024E 2025E 6,900 7,450
Slide 22: ComEd Capital Expenditure Forecast
22 ComEd Capital Expenditure Forecast Q4 2022 Capital Expenditures ($M)Analyst Day 2022 Capital Expenditures ($M) Project ~$11.1B of capital being invested from 2023-2026 2,100 2,075 2,025 2,350 2,450 425 475 525 575 650 2026E2022 2023E 2,525 2025E 2,550 2024E 2,550 2,925 3,100 2,025 2,050 2,000 1,9
Slide 23: PECO Capital Expenditure Forecast
Project ~$6.2B of capital being invested from 2023-2026 23 PECO Capital Expenditure Forecast 875 975 1,150 1,200 1,225 175 75 75 350 325 375 375 350 1,650 2025E2022 1,375 2024E2023E 50 1,575 50 2026E 1,400 1,600 850 950 1,075 1,100 175 75 100 125325 325 375 375 1,550 1,325 2022E 2024E2023E 2025E 1,3
Slide 24: BGE Capital Expenditure Forecast
Project ~$6.0B of capital being invested from 2023-2026 24 BGE Capital Expenditure Forecast 625 525 525 525 525 225 325 425 625 450 475 475 525 525 550 1,475 2026E2022 2023E 1,675 1,325 2024E 1,325 2025E 1,550 500 450 475 500 275 400 400 400 475 475 500 500 2023E2022E 2024E 1,325 1,225 2025E 1,4001,
Slide 25: PHI Consolidated Capital Expenditure Forecast
25 PHI Consolidated Capital Expenditure Forecast 1,200 1,225 1,275 1,325 1,375 650 550 575 600 625 125 100 2026E 1,925 2023E 75 2025E2022 2024E 75 75 1,900 1,950 1,975 2,075 1,175 1,200 1,325 1,275 600 525 550 550 100 100 2025E 75 2022E 2023E 2024E 75 1,850 1,825 1,950 1,875 Note: Numbers rounded to
Slide 26: ACE Capital Expenditure Forecast
Project ~$1.8B of capital being invested from 2023-2026 26 ACE Capital Expenditure Forecast 275 300 250 275 275 175 150 200 200 200 2022 2026E 425 2023E 2024E 2025E 450 450 475 475 300 300 300 275 175 150 175 175 2024E2022E 475 2023E 2025E 475 450 450 Electric Distribution(1)Electric Transmission No
Slide 27: DPL Capital Expenditure Forecast
Project ~$2.4B of capital being invested from 2023-2026 27 DPL Capital Expenditure Forecast 250 275 325 300 350 150 175 175 225 20075 125 100 75 75575 2023E 600 2022 2024E 2025E 475 2026E 575 600 250 250 300 275 150 150 150 175 100 100 75 75 525 475 2022E 2023E 525 2024E 500 2025E Electric Transmiss
Slide 28: Pepco Capital Expenditure Forecast
28 Pepco Capital Expenditure Forecast 675 650 725 750 775 325 250 225 175 225 900 2022 2026E2023E 2024E 925 2025E 1,000 900 975 625 650 725 700 275 225 225 200 2023E 900 900 2022E 900 2024E 2025E 950 Electric Transmission Electric Distribution(1) Note: Numbers rounded to nearest $25M and may not sum
Slide 29: 2023 Financing Plan
2023 Financing Plan(1) Capital plan financed with a balanced approach to maintain strong investment grade ratings OpCo Instrument Issuance ($M) Maturity ($M) Issued ($M) Remaining ($M) FMB $975 - $975 - FMB $350 - - $350 FMB $75 - - $75 FMB $650 ($500) - $650 FMB $525 ($50) - $525 Senior Notes $600
Slide 30: 2023-2026 Financing Plan
30 2023-2026 Financing Plan ~$17 ~$31 ~($6) ~$6 ~$13 Utility Investment 2023-2026 Adjusted Cash from Operations*(1) 2023-2026 Debt Maturity Debt Refinance Debt Issuance(2) ~$0.4 Equity Issuance(3) $ in billions Note: Financing plan is subject to change (1) Adjusted Cash from Operations* is net of co
Slide 31: Exelon Debt Maturity Profile
Exelon Debt Maturity Profile(1,2) Debt Balances (as of 12/31/22)(1,2) Short-Term Debt Long-Term Debt(4) Total Debt BGE $0.4B $4.2B $4.6B ComEd $0.6B $10.7B $11.3B PECO $0.2B $4.8B $5.0B PHI $0.4B $8.1B $8.5B Corp $0.9B(3) $9.6B(4) $10.6B Exelon $2.6B $37.5B $40.1B ($M) As of 12/31/2022 850 500 807 7
Slide 32: Q4 2022 QTD Adjusted Operating Earnings Waterfall
Q4 2022 QTD Adjusted Operating Earnings* Waterfall Note: Amounts may not sum due to rounding (1) Revised from amounts previously reported to reflect only Exelon continuing operations. (2) Reflects higher allowed electric distribution ROE due to an increase in treasury rates and higher rate base. (3)
Slide 33: Q4 2022 YTD Adjusted Operating Earnings Waterfall
Q4 2022 YTD Adjusted Operating Earnings* Waterfall Note: Amounts may not sum due to rounding (1) Revised from amounts previously reported to reflect only Exelon continuing operations. (2) Reflects higher allowed electric distribution ROE due to an increase in treasury rates and higher rate base. (3)
Slide 34: Exelon Adjusted Operating Earnings Sensitivities
34 Exelon Adjusted Operating Earnings* Sensitivities Interest Rate Sensitivity to +50bp 2023E 2024E 30-Year US Treasury Yield (1) $0.03 $0.00 Cost of Debt (2) $(0.00) $(0.01) Exelon Consolidated Effective Tax Rate 16.5% 8.9% Exelon Consolidated Cash Tax Rate 9.2% 8.3% . (1) Reflects full year impact
Slide 35: Rate Case Details
35 Rate Case Details
Slide 36: Exelon Distribution Rate Case Updates
36 Exelon Distribution Rate Case Updates Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Revenue Requirement Requested/Approved ROE / Equity Ratio Expected/Received Order Date $7.6M (1,2) 9.60% / 49.94% Oct 12, 2022 $54.8M (1,3) N/A / N/A (3) Oct 27, 2022 $28.9M (1,5) 3-Year MYP 9.60% / 50.50% Dec 1
Slide 37: Delmarva DE (Gas) Distribution Rate Case Filing
37 Delmarva DE (Gas) Distribution Rate Case Filing Rate Case Filing Details Notes Docket No. 22-0002 • January 14, 2022, Delmarva Power filed an application with the Delaware Public Service Commission (DPSC) seeking an increase in gas distribution base rates • October 5, 2022, Delmarva Power filed a
Slide 38: PECO (Gas) Distribution Rate Case Filing
38 PECO (Gas) Distribution Rate Case Filing Rate Case Filing Details Notes Docket No. R-2022-3031113 • March 31, 2022, PECO filed a general base rate filing with the Pennsylvania Public Utility Commission (PAPUC) seeking an increase in gas distribution base rates • September 19, 2022, PECO filed a J
Slide 39: Delmarva MD Distribution Rate Case Filing
39 Delmarva MD Distribution Rate Case Filing (1) Revenue requirement includes changes in depreciation and amortization expense and other costs where applicable, which have no impact on pre-tax earnings. (2) Company proposed incremental revenue requirement increases with rates effective January 1, 20
Slide 40: ComEd Distribution Rate Case Filing (FRU)
40 ComEd Distribution Rate Case Filing (FRU) (1) Revenue requirement includes changes in depreciation and amortization expense and other costs where applicable, which have no impact on pre-tax earnings. (2) Includes $55M related to the annual reconciliation for 2021, which provides for a ROR of 5.91
Slide 41: Delmarva DE (Electric) Distribution Rate Case Filing
41 Delmarva DE (Electric) Distribution Rate Case Filing (1) Revenue requirement includes changes in depreciation and amortization expense and other costs where applicable, which have no impact on pre-tax earnings. (2) Requested revenue requirement excludes the transfer of $12.4M of revenues from the
Slide 42: ComEd Distribution Rate Case Filing (MYP)
42 ComEd Distribution Rate Case Filing (MYP) (1) Revenue requirement includes changes in depreciation and amortization expense and other costs where applicable, which have no impact on pre-tax earnings. (2) Reflects the revenue requirement increases without the effects of ComEd’s proposed phase-in a
Slide 43: Approved Distribution Rate Case Financials
43 Approved Distribution Rate Case Financials Approved Electric Distribution Rate Case Financials Revenue Requirement Increase/(Decrease) Allowed ROE Common Equity Ratio Rate Effective Date ComEd (Electric) $198.9M 7.85% 49.45% Jan 1, 2023 PECO (Electric) (1) $132.0M N/A N/A Jan 1, 2022 BGE (Electri
Slide 44: Approved Electric Transmission Formula Rate Financials
44 Approved Electric Transmission Formula Rate Financials Approved Electric Transmission Formula Rate Financials Revenue Requirement Increase/(Decrease)(1) Allowed ROE(2) Common Equity Ratio Rate Effective Date(3) ComEd - 11.50% 55.00% Jun 1, 2022 PECO $39M 10.35% 53.29% Jun 1, 2022 BGE $16M 10.50%
Slide 45: Reconciliation of Non-GAAP Measures
45 Reconciliation of Non-GAAP Measures
Slide 46: Projected GAAP to Operating Adjustments
46 Projected GAAP to Operating Adjustments • Exelon’s projected 2023 adjusted (non-GAAP) operating earnings excludes the earnings effects of costs related to the separation.
Slide 47: GAAP to Non-GAAP Reconciliations
47 GAAP to Non-GAAP Reconciliations(1) GAAP Operating Income + Depreciation & Amortization = EBITDA - Cash Paid for Interest +/- Cash Taxes +/- Other S&P FFO Adjustments = FFO (a) Long-Term Debt + Short-Term Debt + Underfunded Pension (after-tax) + Underfunded OPEB (after-tax) + Operating Lease Impu
Slide 48: Q4 QTD GAAP EPS Reconciliation
48 Q4 QTD GAAP EPS Reconciliation Three Months Ended December 31, 2022 ComEd PECO BGE PHI Other Exelon 2022 GAAP Earnings (Loss) from Continuing Operations Per Share $0.21 $0.10 $0.11 $0.09 ($0.08) $0.43 Income Tax-Related Adjustments - - - - (0.01) (0.01) 2022 Adjusted (non-GAAP) Operating Earnings
Slide 49: Q4 YTD GAAP EPS Reconciliation
49 Q4 YTD GAAP EPS Reconciliation Twelve Months Ended December 31, 2022(1) ComEd PECO BGE PHI Other Exelon 2022 GAAP Earnings (Loss) from Continuing Operations Per Share $0.93 $0.58 $0.39 $0.62 ($0.44) $2.08 Asset Impairments - - 0.04 - - 0.04 Separation costs 0.01 - - 0.01 - 0.02 Income tax-related
Slide 50: Exelon Operating TTM ROE Reconciliation
50 GAAP to Non-GAAP Reconciliations Exelon Operating TTM ROE Reconciliation ($M)(1) 2016 2017 2018 2019 2020 2021 2022 Net Income (GAAP) $1,103 $1,704 $1,836 $2,065 $1,737 $2,225 $2,501 Operating Exclusions $461 ($24) $32 $30 $246 $82 $96 Adjusted Operating Earnings $1,564 $1,680 $1,869 $2,095 $1,98
Slide 51: Thank you
Thank you Please direct all questions to the Exelon Investor Relations team: InvestorRelations@ExelonCorp.com 312-394-2345
Slide 52: () exelon’
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