Ameren Corporation · NYSE:AEE
Ameren — Non-Deal Roadshow (September 2016)
28 slides from Ameren's roadshow presentation, Sep 28, 2016
Slide 1: Making an Impact
Making anImpact New York and Boston Investor Meetings September 28-29, 2016
Slide 2: Cautionary Statements
Cautionary Statements Use of Non-GAAP Financial Measures In this presentation, Ameren has presented core earnings, which is a non-GAAP measure and may not be comparable to those of other companies. A reconciliation of GAAP to non-GAAP results is included either on the slide where the non-GAAP measur
Slide 3: Company Description
Company Description Fully rate-regulated electric and gas utility • 2.4 million electric and 0.9 million gas customers • 10,200 MW of regulated electric generation capability • 4,600 circuit miles of FERC-regulated electric transmission Ameren Corporation Ameren Missouri Ameren Illinois Electric Tra
Slide 4: Our Value Proposition to Investors
Our Value Proposition to Investors Strong long-term growth outlook • Expect ~6.5% compound annual rate base growth from 2015 through 20201 – Sustainable infrastructure investment pipeline • Expect 5% to 8% compound annual EPS growth from 2016 through 2020 1 – Based on Feb. 2016 adjusted 2016 EPS gui
Slide 5: Solid Operating Performance
Solid Operating Performance # Delivery system reliability Generating plant Electric rates are low Safety has improved has improved performance remains strong Average Residential Electricity Prices1 Safety Performance 30 600 150 Lost Workday Recordable Cases 25 ¢/KWh BETTER 20 400 100 BETTER Cases 15
Slide 6: Our Strategic Plan
Our Strategic Plan • Investing in and operating our utilities in a manner consistent with existing regulatory frameworks • Enhancing regulatory frameworks and advocating for responsible energy policies • Creating and capitalizing on opportunities for investment for the benefit of our customers and s
Slide 7: Our Regulatory Frameworks
Our Regulatory Frameworks FERC-regulated electric transmission service • Formula ratemaking; nearly eliminates regulatory lag – Allowed base ROE of 12.38% is being challenged; reserve for potential refund – Rates reset each Jan. 1 based on forward-looking calculation with annual reconciliation – Con
Slide 8: Investing Strategically, Consistent with Regulatory Frameworks
Investing Strategically, Consistent with Regulatory Frameworks1 $11.1 Billion of Regulated Infrastructure 2015 to 2020E Regulated 5-Yr Rate Investment 2016-2020 Infrastructure Rate Base2 Base CAGR % of $16.7 Total ~6.5% Ameren $3.5 21% Illinois Ameren Transmission $12.1 20% $2.0 B $2.0 12% ($ Billio
Slide 9: Significant FERC-Regulated Transmission Investment
Significant FERC-Regulated Transmission Investment Planned $3.0 billion investment – 2016-20201 • $1.0 billion of regional multi-value projects at ATXI Regional • $2.0 billion of local reliability and connecting portions of regional Multi-Value Projects multi-value projects at Ameren Illinois Total
Slide 10: 2016-2020 Capital Expenditure Funding Plan
2016-2020 Capital Expenditure Funding Plan1 • Return of capital through depreciation in rates • Retained earnings • ~$2.5-$2.6 billion of income tax deferrals and assets – Income tax deferrals driven primarily by capital expenditures • ~$930 million due to extension of bonus tax depreciation – Inclu
Slide 11: Successfully Executing Our Strategy
Successfully Executing Our Strategy • Major projects across all businesses are proceeding as planned, contributing to solid operational performance – Delivering benefits to customers, driving higher levels of customer satisfaction • Focused on enhancing energy policies, especially in Missouri – MoPS
Slide 12: Our Value Proposition to Investors
Our Value Proposition to Investors Strong long-term growth outlook • Expect ~6.5% compound annual rate base growth from 2015 through 20201 – Sustainable infrastructure investment pipeline • Expect 5% to 8% compound annual EPS growth from 2016 through 2020 1 – Based on Feb. 2016 adjusted 2016 EPS gui
Slide 13: Appendix
Appendix
Slide 14: Debt Outstanding and Credit Ratings (Moody's/S&P)
Debt Outstanding and Credit Ratings (Moody’s/S&P) ($ in millions as of June 30, 2016) Ameren Corporation (Baa1/BBB+) Sr. unsecured (Baa1/BBB) - $7001 Commercial paper (P-2/A-2) - $524 Ameren Missouri Ameren Illinois Ameren Transmission (Baa1/BBB+) Ameren Services (A3/BBB+) Company of Illinois Compan
Slide 15: Strong Liquidity and Manageable Maturities
Strong Liquidity and Manageable Maturities • Strong Liquidity Profile Long-term Debt Maturities Outlook1 – $2.1 billion of combined credit facilities maturing in Dec. 2019 – Three commercial paper programs supported by credit facilities - $1.2 ($s in Millions) billion at Ameren Corp., $800 million a
Slide 16: Select Pending Regulatory Matters
Select Pending Regulatory Matters Missouri electric service • $206 million annual electric revenue increase request filed July 1 with MoPSC – Includes recovery of, and return on, new infrastructure investments – Removes prospectively the negative earnings effects of lower Noranda sales volumes – See
Slide 17: Pending 2016 Missouri Electric Rate Case Filing
Pending 2016 Missouri Electric Rate Case Filing • $206 million annual electric revenue increase request filed July 1, 2016 with MoPSC, which would result in an average 7.8% increase in base PROCEDURAL SCHEDULE rates KEY DATES: – ROE: 9.9% vs. 9.53% in April 2015 order – Equity ratio: 51.8% (Dec. 31,
Slide 18: Pending 2016 Missouri Electric Rate Case Filing, cont'd
Pending 2016 Missouri Electric Rate Case Filing, cont’d • Key drivers of requested $206 million annual revenue increase – New electric infrastructure investments: +$74 million • Depreciation: $39 million; return on rate base: $25 million; and property taxes1: $10 million – Reduced customer sales vol
Slide 19: Pending 2016 Illinois Electric Formula Rate Update
Pending 2016 Illinois Electric Formula Rate Update • $14 million net revenue requirement decrease filed in April 2016 with ICC in required annual formula rate update consisting of: RATE UPDATE SCHEDULE KEY DATES: – $96 million increase, including interest, for 2015 revenue requirement reconciliation
Slide 20: Pending FERC MISO Complaint Cases
Pending FERC MISO Complaint Cases • Cases seek to reduce Ameren Illinois’ and ATXI’s transmission service allowed base ROE of 12.38% – In first case, ALJ initial decision issued Dec. 22, 2015 recommended a 10.32% base ROE – In second case, ALJ initial decision issued June 30, 2016 recommended a 9.70
Slide 21: GAAP to Core Earnings Reconciliation
GAAP to Core Earnings Reconciliation (In millions, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2015 2016 2015 2016 GAAP Earnings / Diluted EPS $ 150 $ 0.61 $ 147 $ 0.61 $ 258 $ 1.06 $ 252 $ 1.04 Results from discontinued operations Operating income before income t
Slide 22: Earnings Analysis for Second Quarter
Earnings Analysis for Second Quarter Core Diluted EPS Key Core Earnings Variance Drivers Higher retail electric sales volumes, excluding Noranda, driven by Q2 2015 vs. Q2 2016 warmer early summer temperatures: ~$0.07 – Warmer temperatures: ~+$0.07 vs. Q2 2015 and ~+$0.06 vs. normal $0.61 Increas
Slide 23: Earnings Analysis for Six Months Ended June 30
Earnings Analysis for Six Months Ended June 30 Key Core Earnings Variance Drivers Core Diluted EPS Increased electric transmission and distribution infrastructure investments YTD 2015 vs. YTD 2016 by ATXI and Ameren Illinois, net of changes in ROEs: +$0.10 Higher Illinois natural gas distributio
Slide 24: 2016 EPS Guidance: Select Balance of Year Considerations
2016 EPS Guidance1: Select Balance of Year Considerations Q3-Q4 2016 compared to Q3-Q4 2015: 2016E Diluted EPS Return to normal temperatures – Q3 2016 ~flat; Q4 2016 ~+$0.08 $2.65 Increased electric transmission and distribution service infrastructure investments by ATXI and Ameren Illinois, net
Slide 25: Noranda's Impact on Ameren Expected to be Temporary
Noranda’s Impact on Ameren Expected to be Temporary • Noranda Aluminum’s Background 2016 Expected – Ameren Missouri supplied electricity to Noranda’s aluminum smelter Diluted EPS – Was Ameren Missouri’s largest customer: ~4% of revenues and ~10% of MWh sales in 2015 Impact from – Noranda’s portion o
Slide 26: Select Regulatory Matters
Select Regulatory Matters Missouri Public Service Commission • 2016 electric rate case: Docket No. ER-2016-0179 • Order granting CCN for ATXI’s Mark Twain transmission project: Docket No. EA-2015-0146 • Working case to consider policies to improve electric utility regulation: Docket No. EW-2016-0313
Slide 27: Investor Relations Calendar
Investor Relations Calendar SEPTEMBER 2016 OCTOBER 2016 SUN. MON. TUES. WED. THUR. FRI. SAT. SUN. MON. TUES. WED. THUR. FRI. SAT. 1 2 3 1 2 3 4 5 6 7 8 9 10 4 5 6 7 8 9 10 Barclays Q3 Quiet Power Period Conf. 11 12 13 14 15 16 17 11 12 13 14 15 16 17 SF Equity Meetings 18 19 20 21 22 23 24 18 19 20
Slide 28: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations ALJ – Administrative Law Judge. FAC – Fuel adjustment clause. ATXI – Ameren Transmission Company of Illinois. FERC – Federal Energy Regulatory Commission. B – Billion. GAAP – Generally Accepted Accounting Principles. CAGR – Compound annual growth rate. ICC – Illin