Slide 1: Leading the Way to a Sustainable Energy Future
Leading the Way to a Sustainable Energy Future Second Quarter 2021 Earnings Aug. 6, 2021
Slide 2: Cautionary Statements
Cautionary Statements Forward-looking Statements Statements in this presentation not based on historical facts are considered "forward-looking" and, accordingly, involve risks and uncertainties that could cause actual results to differ materially from those discussed. Although such forward-looking s
Slide 3: Business Update
Business Update Warner Baxter Chairman, President and Chief Executive Officer, Ameren Corp. Ameren Missouri’s 400 MW High Prairie Renewable Energy Center in service Dec. 2020
Slide 4: Earnings and Guidance Summary
Earnings and Guidance Summary • Continued strong execution of strategic plan Diluted EPS • Key Q2 earnings variance drivers 2020 vs. 2021 ↓ Change in Ameren Missouri electric rate design; not expected to $1.71 impact full year results $1.57 ↓ Absence of FERC order addressing MISO allowed base ROE $0
Slide 5: Executing Our Strategy
Executing Our Strategy Our Strategic Plan • Investing in and operating our utilities in a manner consistent with existing Capital Expenditures regulatory frameworks YTD June 2021 • Enhancing regulatory frameworks and advocating for responsible energy and ($ millions) economic policies $1,768 • Creat
Slide 6: Legislative and Regulatory Initiatives
Legislative and Regulatory Initiatives Enhancing regulatory frameworks and advocating for responsible energy and economic policies Ameren Missouri Electric • Securitization bill (HB 734) passed by the Missouri General Assembly, signed by governor – Ameren Missouri’s 2020 Integrated Resource Plan doe
Slide 7: Ameren Transmission Regulatory Matters
Ameren Transmission Regulatory Matters Enhancing regulatory frameworks and advocating for responsible energy and economic policies • In Apr. 2021, FERC issued supplemental NOPR that would remove incentive adder for utilities that have been members of an RTO for three years or more – Current allowed
Slide 8: MISO Long-Range Transmission Planning Roadmap
MISO Long-Range Transmission Planning Roadmap Creating and capitalizing on opportunities for investment for the benefit of our customers, shareholders and the environment • In Apr. 2021, MISO issued report outlining preliminary long-range transmission planning roadmap through 2039 – Generation resou
Slide 9: Missouri Renewable Energy Investments
Missouri Renewable Energy Investments Creating and capitalizing on opportunities for investment for the benefit of our customers, shareholders and the environment 400 MW High Prairie Renewable Energy 300 MW Atchison Renewable Energy Center located in northeast Missouri Center located in northwest Mi
Slide 10: Callaway Energy Center
Callaway Energy Center • During facility’s return to power in late Dec. 2020, a non-nuclear operating issue occurred related to its generator • Team executed plan and safely returned energy center to service on Aug. 4 – ~$60 million capital project – Insurance claims for capital project and replacem
Slide 11: Our Sustainability Value Proposition
Our Sustainability Value Proposition ENVIRONMENTAL SOCIAL IMPACT GOVERNANCE • Accelerating transition to a cleaner and • Delivering value to our customers in 2020 • Diverse BOD focused on strong oversight more diverse portfolio while focused on safety-first work culture – 62% women or racially/ethni
Slide 12: Robust Investment Opportunities Across All Businesses Over Next Decade
Robust Investment Opportunities Across All Businesses Over Next Decade Modernizing the grid and investing in cleaner generation for the long-term benefit of customers, shareholders and the environment Additional Investment Investment Plan 2021-20251 Opportunities 2021-20301 $40B+ ($ billions) $23+ S
Slide 13: Long-term Total Return Outlook
Long-term Total Return Outlook • Remain on track to deliver strong long-term earnings growth – Expect 6% to 8% EPS CAGR from 2021-20251 • Using 2021 EPS guidance midpoint of $3.75 as the base 2020-2025E Regulated Five-Year Rate – Expect ~8% rate base CAGR from 2020-20251,2 Infrastructure Rate Base1,
Slide 14: Financial Update
Financial Update Michael Moehn Executive Vice President and Chief Financial Officer, Ameren Corp.
Slide 15: 2021 Second Quarter Earnings Analysis – Key Drivers
2021 Second Quarter Earnings Analysis – Key Drivers1 ↓ Ameren Missouri earnings — Change in electric rate design; not expected to impact full year results: $(0.19) — Timing of tax expense; not expected to materially impact full year results: $(0.03) — Higher other operations and maintenance expenses
Slide 16: 2021 EPS Guidance and Select Balance of the Year Considerations
2021 EPS Guidance and Select Balance of the Year Considerations • Reaffirm 2021 diluted EPS guidance range of $3.65 to $3.85 2021E • Select considerations for Q3-Q4 2021 EPS compared to Q3-Q4 Diluted EPS 2020 EPS $3.85 – Ameren Missouri seasonal electric rate design effective in 2021 as a result of
Slide 17: Select Regulatory Items
Select Regulatory Items Ameren Missouri Electric Rate Review Update Ameren Missouri Electric and Natural • $299 million annual revenue increase request filed Mar. 31 with MoPSC Gas Rate Review – ROE: 9.9% and equity ratio: 51.9%; Rate base: $10.0 billion (Sep. 30, 2021 estimate) Procedural Schedules
Slide 18: Published Sustainability Financing Framework
Published Sustainability Financing Framework • On June 2, Ameren published a Sustainability Financing Framework; one of the first utilities in the nation to do so – Framework supports Ameren’s sustainability goals and target of net-zero carbon emissions by 2050, as well as social initiatives – Allow
Slide 19: Financing and Liquidity Update
Ameren Credit Ratings Financing and Liquidity Update Debt Financing and External Debt Balances1 • On Mar. 5, Ameren Corporation issued $450 million of 1.75% senior unsecured notes due 2028 – Proceeds used for general corporate purposes and to repay short-term debt As of June 30, 2021 $ in millions M
Slide 20: Summary
Summary Expect to deliver strong earnings growth in 2021 with guidance in a range of $3.65 to $3.85 per diluted share Successfully executing our strategy; well-positioned for future growth • Focused on delivering a cleaner and sustainable energy future in a responsible manner Strong long-term growth
Slide 21: Appendix
APPENDIX
Slide 22: Four Constructive Regulatory Frameworks
Four Constructive Regulatory Frameworks FERC-regulated: Formula ratemaking Ameren • Allowed ROE is 10.52%, includes MISO participation adder of 50 basis points; ~56% average equity ratio Transmission • Rates reset each Jan. 1 based on forward-looking calculation with annual reconciliation ICC-regula
Slide 23: 2021 Earnings Analysis for Six Months Ended June 30
2021 Earnings Analysis for Six Months Ended June 301 Key Earnings Variance Drivers ↑ Ameren Missouri earnings — New electric service rates effective Apr.1, 2020: ~+$0.10 — Higher electric retail sales: ~+$0.07 Diluted EPS • Weather vs. 2020: ~+$0.05; vs. normal ~+$0.02 YTD June 2020 vs. YTD June 202
Slide 24: Our Focus on Delivering a Cleaner Energy Future Responsibly
Our Focus on Delivering a Cleaner Energy Future Responsibly While providing safe, reliable and affordable energy to customers • Climate risk management and mitigation – Targeting significant reductions in greenhouse gases – Implementing robust customer energy efficiency programs – Investing to moder
Slide 25: Ameren Missouri Generation Transformation
Ameren Missouri Generation Transformation Transition to a cleaner and more diverse portfolio in a responsible fashion 1 50% CARBON EMISSIONS 85% CARBON EMISSIONS NET-ZERO CARBON REDUCTION2 REDUCTION2 EMISSIONS2 • Ameren Missouri filed its preferred Integrated Resource Plan with the MoPSC in Sep. 202
Slide 26: Building a Brighter and Cleaner Energy Future
Building a Brighter and Cleaner Energy Future Innovative Programs to Meet Customer Needs and Rising Expectations Utility-owned solar Subscription program generation facilities for MO available to MO residential non-residential customer Neighborhood Community and small business parking lots, open lan
Slide 27: Investing in the Energy Grid
Investing in the Energy Grid • Investing to modernize energy grid, making it cleaner, safer, more reliable, resilient and secure – Expect greater transmission investments to support additional renewable generation 2020-2025E Regulated – Provide customers with greater tools to manage energy usage Inf
Slide 28: Working to Keep Missouri Customer Rates Low
Working to Keep Missouri Customer Rates Low • Ameren Missouri has kept rates stable and affordable for Ameren Missouri customers, with residential rates more than 20% below national Electric Rates3 and Midwest averages1 – Expect to remain well below the Midwest average after the completion ¢/KWh of
Slide 29: Working to Keep Illinois Customer Rates Low
Working to Keep Illinois Customer Rates Low • Ameren Illinois has kept rates stable and affordable for Ameren Illinois Electric Distribution customers, with residential rates more than 20% below Midwest Rates2 and national averages1 • Apr. 2021 rate update filing is only the second requested ¢/KWh i
Slide 30: Ameren’s Estimated Coal-Related Revenues in 2020
Ameren’s Estimated Coal-Related Revenues in 2020 Return on Investment Revenues Cost Recovery3 Revenues $2.1B1 x $2.1B1 x ($103M $423M + 52% x 48% x x 25%) / $161M x $147M + 9.53%2 = 4.5% = (1 - 25%) 26%1 = $154M = $103M $45M $34M $42M $724M $5,794M 16% Return on Interest Tax Expense Property Fuel, o
Slide 31: Investor Relations Calendar
Investor Relations Calendar AUG. 2021 SEP. 2021 SUN. MON. TUES. WED. THUR. FRI. SAT. SUN. MON. TUES. WED. THUR. FRI. SAT. 1 2 3 4 5 6 7 1 2 3 4 Q2 Quiet Q2 Period Earnings Cont’d Conf. Call 8 9 10 11 12 13 14 5 6 7 8 9 10 11 UBS Fireside Chat with Dan Ford 15 16 17 18 19 20 21 12 13 14 15 16 17 18 U
Slide 32: Select Regulatory Matters
Select Regulatory Matters Missouri Public Service Commission • Pending electric rate review filling: Docket No. ER-2021-0240 • Pending natural gas rate review filing: Docket No. GR-2021-0241 • Smart Energy Plan filing: Docket No. EO-2019-0044 • 2020 Integrated Resource Plan: Docket No. ER-2021-0021;
Slide 33: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations AFUDC – Allowance for funds used during construction IRP – Integrated resource plan ATXI – Ameren Transmission Company of Illinois ISRS – Infrastructure System Replacement Surcharge B – Billion M – Million bps – Basis points MEEIA – Missouri Energy Efficiency Inve