Slide 1: Third Quarter 2023 Financial Results
THIRD QUARTER 2023 FINANCIAL RESULTS NOVEMBER 1, 2023
Slide 2: Forward-Looking Statements
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 forward-looking statem
Slide 3: Third Quarter Key Messages
Third Quarter Key Messages 1 YTD performance on track to deliver on 2023 core EPS guidance1 $0.40 $1.38 Q3 GAAP EPS Q3 Core EPS1 Achieved milestone in industry-leading wildfire 2 mitigation program: Over 5,200 miles of covered Reaffirmed $4.55–4.85 conductor now installed Filed $2.4 billion cost rec
Slide 4: SCE filed first 2017/2018 cost recovery application ($2.4Bn)
In August, SCE filed first 2017/2018 cost recovery application ($2.4Bn), proposing CPUC decision in early 2025 3Q Update: Best estimate adjusted by $475MM Substantial progress resolving claims $ in Billions, as of September 30, 2023 Driven by settlements being resolved at higher levels than original
Slide 5: Countdown to 2045: the electric grid must expand rapidly
Countdown to 2045 makes it clear that the electric grid must expand rapidly and integrate new clean energy technologies Up to +80% 90% 95% 4x & 10x 3x 40% Growth of of Historical pace More Average in electricity vehicles buildings are of transmission utility-scale savings on demand are electrified e
Slide 6: Third Quarter Earnings Summary
Third Quarter Earnings Summary Q3 2023 Q3 2022 Variance Key SCE EPS Drivers2 Lower revenue3,4 $ (0.05) Basic Earnings Per Share (EPS) GRC escalation 0.20 Other CPUC revenue (0.27) SCE $ 0.62 $ (0.21) $ 0.83 FERC and other operating revenue 0.02 EIX Parent & Other (0.22) (0.12) (0.10) Lower O&M4 0.07
Slide 7: GRC underpins ~$38–43 billion 2023–2028 capex forecast
GRC underpins ~$38–43 billion 2023–2028 capex forecast; substantial additional investment opportunities offer upside Capital deployment expected to increase in 2025–20281 Capital Expenditures, $ in Billions $8.2 $8.3 Forecast does not include $7.5 $7.8 substantial additional capital deployment oppor
Slide 8: GRC request supports ~6–8% rate base growth 2023–2028
GRC request supports ~6–8% rate base growth 2023–2028; substantial additional investment opportunities offer upside Strong rate base growth driven by wildfire mitigation and important grid work to support California’s leading role in clean energy transition Rate Base1, $ in Billions ~8% CAGR Forecas
Slide 9: EIX reaffirms 2023 core EPS guidance of $4.55–4.85
EIX reaffirms 2023 core EPS guidance of $4.55–4.85 EIX 2023 Core Earnings Per Share Guidance Range Rate Base Building from SCE Rate Base EPS CPUC FERC 2023 2023 Rate Base ($Bn) $33.7 $7.6 YTD Guidance Equity Ratio 52.00% 47.50% Rate Base EPS 4.13 5.58 ROE 10.05% 10.30% EPS $4.61 $0.97 SCE Operationa
Slide 10: Significant portion of EIX 2023 financing plan accomplished
Significant portion of EIX 2023 financing plan accomplished, with strong investor support for offerings EIX 2023 Debt Maturities EIX 2023 Financing Plan Status1 $ in Millions As of September 30, 2023 $1,400 Expect to issue securities with $300–400 million of equity content: $400 – In March, issue
Slide 11: CPUC cost of capital mechanism adjusts ROE upward to 10.75%
CPUC cost of capital mechanism adjusts ROE for 2024 and 2025 upward to 10.75%; also resets costs of debt and preferred CPUC Cost of Capital Adjustment Mechanism (CCM) Advice letter to implement 70 bps Moody’s Baa Utility Bond Index Rate (%), as of October 30, 2023 upward adjustment filed October 13
Slide 12: EIX offers double-digit total return potential
EIX offers double-digit total return potential 5–7% core EPS CAGR1 Underpinned by strong rate base growth of ~6–8% 2021–2025 and 2025–2028 $38–43 billion 2023–2028 capital program ~4% 19 consecutive years of dividend growth current dividend yield2 Target dividend payout of 45–55% of SCE core earning
Slide 13: Additional Information
ADDITIONAL INFORMATION
Slide 14: Year-to-Date Earnings Summary
Year-to-Date Earnings Summary YTD 2023 YTD 2022 Variance Key SCE EPS Drivers2 Lower revenue3,4 $ (0.07) Basic Earnings Per Share (EPS) GRC escalation 0.58 Other CPUC revenue (0.78) SCE $ 2.69 $ 0.97 $ 1.72 FERC and other operating revenue 0.13 EIX Parent & Other (0.55) (0.45) (0.10) Lower O&M4 0.65
Slide 15: Gap between 2023 rate base and core EPS growth
Gap between 2023 rate base and core EPS growth largely driven by interest on debt for wildfire claims payments1 Earnings from strong 7% 2023 rate base growth offset by higher interest expense 2022 Core EPS vs. 2023 Core EPS Guidance at Midpoint of $4.55–4.85 Range1 +6.9% +1.5% 0.18 (0.11) 4.95 (0.25
Slide 16: Cash flow from memo account recovery and securitization
Cash flow from memo account recovery and securitization strengthens our balance sheet and credit metrics GRC, Wildfire-related, and Wildfire Insurance Applications $ in Millions Approved Applications Balance @ Recovery Remaining Rate Recovery by Year Application / Account Sept. 30 Through Q4 2023 20
Slide 17: SCE Key Regulatory Proceedings
SCE Key Regulatory Proceedings Proceeding Description Next Steps Base Rates 2021 GRC Track 4 Set CPUC base revenue requirement for third attrition year (2024) Settlement agreement filed with CPUC pending (A.19-08-013) approval 2025 GRC Sets CPUC base revenue requirement for 2025–2028. For more infor
Slide 18: TKM Cost Recovery Proposed Schedule
TKM Cost Recovery Proposed Schedule Event SCE Proposal Application Filed Complete Protests and responses Complete SCE’s reply to protests Complete Pre-hearing Conference By November 2023 Scoping ruling issued December 2023 Public Advocates Office and intervenor testimony Late April/Early May 2
Slide 19: EIX reaffirms 5–7% 2021–2025 EPS growth rate target
EIX reaffirms 5–7% 2021–2025 EPS growth rate target, which would result in 2025 EPS of $5.50–5.901 Pursuing opportunities to deliver 5–7% growth rate1 2025 Core Earnings per Share Component Ranges2 Component Modeling Considerations Rate Base EPS • CPUC ROE of 10.05% and FERC ROE 10.30% (based on cap
Slide 20: EIX expects 5–7% core EPS growth for 2025–2028
EIX expects 5–7% core EPS growth for 2025–20281, with minimal equity needs Core driver for earnings trajectory is SCE’s strong rate Achievable EPS growth for 2028 Core Earnings per Share Guidance1 1 base growth, driven by investing in the reliability, resilience, and readiness of the grid $6.60–7.00
Slide 21: Key 2028 Earnings Sensitivities
Key 2028 Earnings Sensitivities Sensitivity Variable (“Per year” amounts refer to 2025–2028) 2028 EPS1 Capex & Rate Base $100 million/year of capex 5¢ Rate Base AFUDC Annual capex of 1¢ (~45¢/share) $200 million Requested ~$400 million increase If requested increase +15–35¢ in depreciation in 2025 G
Slide 22: Cost recovery for 2017/2018 events benefits financial strength
Cost recovery for 2017/2018 events benefits financial strength of the utility and reduces costs for customers Debt paydown $1 billion with proceeds of securitization2 Modeling sensitivities: For each $1 billion Higher FFO-to-Debt ~40–50 bps of cost recovery… ~$35 million Reduced interest expense (~9
Slide 23: EIX & SCE have limited variable-rate exposure
EIX & SCE have limited variable-rate exposure Approximately $11 billion of the total ~$31 billion long-term debt portfolio matures through 20281 Outstanding Short- and Long-Term Debt Maturities (2023–2028)1 as of September 30, 2023, $ in Millions Fixed Rate Variable Rate Wtd. Avg. Rate2 SCE Wildfire
Slide 24: SCE continues to fund wildfire claims payments with debt
SCE continues to fund wildfire claims payments with debt Wildfire Claims Payment-Related Debt Issuances Interest expense not currently recoverable in rates, $ in Millions except percentages, as of September 30, 2023 however, will be included in 2017/2018 Wildfire/ Series Principal Due Rate Mudslide
Slide 25: Earnings Non-GAAP Reconciliations
Earnings Non-GAAP Reconciliations Reconciliation of EIX GAAP Earnings to EIX Core Earnings Earnings (Losses) Attributable to Edison International, $ in Millions Q3 2023 Q3 2022 YTD 2023 YTD 2022 SCE $ 239 $ (80) $ 1,029 $ 369 EIX Parent & Other (84) (48) (210) (172) Basic Earnings $ 155 $ (128) $ 81
Slide 26: EIX Core EPS Non-GAAP Reconciliations
EIX Core EPS Non-GAAP Reconciliations Reconciliation of EIX Basic Earnings Per Share to EIX Core Earnings Per Share EPS Attributable to Edison International1 Q3 2023 Q3 2022 YTD 2023 YTD 2022 Basic EPS $ 0.40 $ (0.33) $ 2.14 $ 0.52 Non-Core Items SCE 2017/2018 Wildfire/Mudslide Events claims and exp
Slide 27: Earnings Per Share Non-GAAP Reconciliations
Earnings Per Share Non-GAAP Reconciliations Reconciliation of EIX Basic Earnings Per Share Guidance to EIX Core Earnings Per Share Guidance 2023 EPS Attributable to Edison International Low High Basic EIX EPS $3.21 $3.51 Total Non-Core Items1 (1.34) (1.34) Core EIX EPS $4.55 $4.85 1. Non-core items
Slide 28: Use of Non-GAAP Financial Measures
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 (losses) internally for financial planning and for analysis of performance. Core earnings (losses) are