Edison International · NYSE:EIX
Edison International — Q2 2020 Earnings Presentation
14 slides from Edison International's earnings presentation, Jul 28, 2020
Slide 1: Second Quarter 2020 Financial Results
Second Quarter 2020 Financial Results July 28, 2020
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: Second Quarter Earnings Summary
Second Quarter Earnings Summary Q2 Q2 2020 2019 Variance SCE EPS Drivers2 Test Year 2018 GRC true-up in 20193 $ (0.20) Basic Earnings Per Share (EPS) Higher revenue 0.19 SCE $ 1.02 $ 1.28 $ (0.26) - CPUC revenue 0.14 - FERC revenue 0.05 EIX Parent & Other (0.17) (0.08) (0.09) Higher O&M (0.24) Basic
Slide 4: SCE has strong rate base growth driven by significant electric infrastructure investment opportunities
SCE has strong rate base growth driven by significant electric infrastructure investment opportunities SCE forecasts deploying significant capital in …resulting in above industry average rate 2020–2023… base growth Capital Expenditures, $ in Billions Rate Base2,3, $ in Billions ~$21 billion 7.5% 202
Slide 5: GRC update: Intervenor proposals submitted; CPUC action affirms commitment to maintaining original schedule
GRC update: Intervenor proposals submitted; CPUC action affirms commitment to maintaining original schedule Primary intervenor reductions are focused on CalPA and TURN proposals would result in the following areas, which ignore key cost-of- rate base growth near range case forecast service principle
Slide 6: Other Financial Topics
Other Financial Topics Completed 2020 EIX $800 million equity transaction in May at no discount to prior close financing plan $400 million note offering in April COVID-related costs Recorded $49 million to COVID-19-related memo accounts1 in balancing and memo accounts Recent CPUC decision to allow i
Slide 7: EIX narrows 2020 core earnings guidance to $4.37–4.62
EIX narrows 2020 core earnings guidance to $4.37–4.62 Midpoint of 2020 Core Earnings Per Share Guidance Range of $4.37–4.62 Building from SCE Rate Base on 2019 Weighted Average Shares $0.27 ($0.10) ($0.43) $5.20 Interest related to ($0.44) Financial, operating, and debt issued for Operating $4.50 fu
Slide 8: 2020 EIX Core Earnings Guidance Assumptions
2020 EIX Core Earnings Guidance Assumptions 2020 Assumption Additional Notes CPUC Rate Base ($ in Billions) $26.9 Return on Equity (ROE) 10.30% 2020 Cost of Capital Final Decision Equity in Capital Structure 52% 2020 Cost of Capital Final Decision FERC Rate Base ($ in Billions) $6.6 ~20% of total 20
Slide 9: Appendix
Appendix
Slide 10: Year-to-Date Earnings Summary
Year-to-Date Earnings Summary YTD YTD 2020 2019 Variance SCE EPS Drivers2 Test Year 2018 GRC true-up in 20193 $ (0.20) Basic Earnings Per Share (EPS) Higher revenue 0.61 SCE $ 1.64 $ 2.18 $ (0.54) - CPUC revenue 0.51 - FERC revenue 0.10 EIX Parent & Other (0.27) (0.13) (0.14) Higher O&M (0.52) Basic
Slide 11: 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 Guidance1 2020 EPS Attributable to Edison International Low High Basic EIX EPS $4.09 $4.34 Total Non-Core Items (0.28) (0.28) Core EIX EPS $4.37 $4.62 1. EPS is calculat
Slide 12: Earnings Non-GAAP Reconciliations
Earnings Non-GAAP Reconciliations Reconciliation of EIX GAAP Earnings to EIX Core Earnings Earnings Attributable to Edison International, $ in Millions Q2 Q2 YTD YTD 2020 2019 2020 2019 SCE $381 $419 $600 $712 EIX Parent & Other (63) (27) (99) (42) Basic Earnings $318 $392 $501 $670 Non-Core Items S
Slide 13: 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 International Q2 Q2 YTD YTD 2020 2019 2020 2019 Basic EPS $ 0.85 $ 1.20 $ 1.37 $ 2.05 Non-Core Items1 SCE Wildfire Insurance Fund expense (0.18) — (0.36) — 2
Slide 14: 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