Slide 1: 2Q 2023 Strategic & Financial Highlights
2Q 2023 Strategic & Financial Highlights Brian X. Tierney, President & CEO K. Jon Taylor, SVP & CFO
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-Looking Statements: This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 based on information currently available to management. Such statements are subject to certain risks and uncertainti
Slide 3: Non-GAAP Financial Matters
Non-GAAP Financial Matters This presentation contains references to non-GAAP financial measures including, among others, Operating earnings (loss), Operating earnings (loss) per share (“EPS”), and Operating EPS by segment, and presents the impact of special items on the following measures, Total rev
Slide 4: Focus of Today's Call
Focus of Today’s Call Brian X. Tierney – President and Chief Executive Officer ■ Strengthened balance sheet and strong platform for a bright future ■ Focused on positive engagement with key stakeholders to best serve customers ■ Reaffirming targeted long-term annual Operating EPS growth rate of 6-8%
Slide 5: Financial Overview
Financial Overview Reaffirming 2023 and long-term goals 2023 vs 2022 Results Long-Term Guidance Second Quarter YTD June Targeted 6-8% Annual Operating EPS Growth $1.12 $0.53 $1.06 $0.47 $0.92 $0.41 $0.83 $0.33 ~7% 2024 & 2025 Annual Rate Base Growth ~$18B Investment Plan 2021-2025 GAAP EPS Operating
Slide 6: Our Bright Future
Our Bright Future Positive Engagement with Key Stakeholders Employees and State Management Rating Union Commissions Customers Investors and Key New Agencies Leadership and Governors Hires Indicators for Success Workforce Skilled, engaged, and dedicated Regulatory Environment Constructive and custome
Slide 7: Delivering Financial Results: 2Q 2023 Earnings Summary
Delivering Financial Results 2Q 2023 Earnings Summary Quarter-over-Quarter Operating EPS Summary 2Q23 GAAP Earnings $0.41 per share (vs. $0.33 per share in 2Q22) – 2Q 2023 results include ($0.06) of special Financing Plan: items, including Debt-related costs ($0.05), RD: -$0.03 Lower Enhanced employ
Slide 8: Delivering Financial Results: YTD June 2023 Earnings Summary
Delivering Financial Results YTD June 2023 Earnings Summary Year-over-Year Operating EPS Summary YTD GAAP Earnings Financing Plan $0.92 per share (vs. $0.83 per share in RD: -$0.04 YTD 22) RT: -$0.05 Corp: +$0.05 – YTD 2023 results include ($0.14) of special items, including FE Forward cost to achie
Slide 9: Reaffirming 2023 Operating Earnings Guidance: $2.44 - $2.64/sh
Reaffirming 2023 Operating Earnings Guidance: $2.44 - $2.64/sh Expectations for 2H23: Focused on meeting our financial commitments ■ Operating expenses despite unprecedented weather impacts – Increased productivity – Voluntary early retirement and $2.54 (midpoint) $2.54 (midpoint) involuntary separa
Slide 10: Executing on Our Regulatory Strategy
Executing on Our Regulatory Strategy NJ (Filed 3/16) OH (May) MD (Filed 3/22) WV (Filed 5/31) PA (1Q24) 2023 2024 Base Rate Case Filings Base Rate Case Filings J F M A M J J A S O N D J F M A M J J A Additional Filings NJ: Plan to file IIP in summer 2023 PA: Plan to file LTIIP PA / VA / FERC: FET 30
Slide 11: Earnings Supplement to the Financial Community
Earnings Supplement to the Financial Community TABLE OF CONTENTS (Slide) 12. 2Q Earnings Summary and Reconciliation 13. 2Q Earnings Drivers by Segment 14. YTD Earnings Summary and Reconciliation 15. YTD Earnings Drivers by Segment 16. Special Items Descriptions 17. 2Q 2023 Earnings Results 18. 2Q 20
Slide 12: Quarterly Summary and Reconciliation
Quarterly Summary 2Q 2023 2Q 2022 Change GAAP Earnings Per Basic Share $0.41 $0.33 $0.08 Special Items $0.06 $0.20 $(0.14) Operating (Non-GAAP) Earnings Per Share $0.47 $0.53 $(0.06) Quarterly Reconciliation EPS Variance Analysis Regulated Regulated Corporate / FirstEnergy Corp. (in millions, except
Slide 13: Earnings Drivers: 2Q 2023 vs. 2Q 2022
Earnings Drivers: 2Q 2023 vs. 2Q 2022 Regulated Distribution (RD) ▪ Rates & Investments +$0.02: Higher revenues from formula rate investment programs in Pennsylvania, West Virginia, and Maryland, as well as lower Ohio rate credits ▪ Customer demand ($0.07): Primarily due to lower weather-related dem
Slide 14: YTD June Summary and Reconciliation
YTD June Summary 2023 2022 Change GAAP Earnings Per Basic Share $0.92 $0.83 $0.09 Special Items $0.14 $0.29 $(0.15) Operating (Non-GAAP) Earnings Per Share $1.06 $1.12 $(0.06) YTD June Reconciliation EPS Variance Analysis Regulated Regulated Corporate / FirstEnergy Corp. (in millions, except per sha
Slide 15: Earnings Drivers: YTD June 2023 vs. YTD June 2022
Earnings Drivers:YTD June 2023 vs. YTD June 2022 Regulated Distribution (RD) ▪ Rates & Investments +$0.03: Higher revenues from formula rate investment programs in Ohio, Pennsylvania, West Virginia, and Maryland, as well as lower Ohio rate credits ▪ Customer demand ($0.13): Primarily due to lower we
Slide 16: Special Items Descriptions
Special Items Descriptions ▪ Debt-related costs: Primarily reflects costs associated with the redemption and early retirement of debt. ▪ Elimination of intersegment interest on FET proceeds: Intercompany interest expense/income between RT and Corp/Other associated with the proceeds from the FET 19.9
Slide 17: 2nd Quarter 2023
2nd Quarter 2023 (in millions, except for per share amounts) GAAP Special Items Operating (Non-GAAP) RD RT Corp FE RD RT Corp FE RD RT Corp FE (1) Electric sales $ 2,482 $ 518 $ (43) $ 2,957 $ — $ — $ — $ — $ 2,482 $ 518 $ (43) $ 2,957 (2) Other 60 2 (13) 49 — — — — 60 2 (13) 49 (3) Total Revenues 2
Slide 18: 2nd Quarter 2022
2nd Quarter 2022 (in millions, except for per share amounts) GAAP Special Items Operating (Non-GAAP) RD RT Corp FE RD RT Corp FE RD RT Corp FE (1) Electric sales $ 2,374 $ 440 $ (37) $ 2,777 $ — $ 1 (f) $ — $ 1 $ 2,374 $ 441 $ (37) $ 2,778 (2) Other 52 1 (12) 41 — — — — 52 1 (12) 41 (3) Total Revenu
Slide 19: 2nd Quarter 2023 vs 2nd Quarter 2022
2nd Quarter 2023 vs 2nd Quarter 2022 (in millions, except for per share amounts) GAAP Special Items Operating (Non-GAAP) RD RT Corp FE RD RT Corp FE RD RT Corp FE (1) Electric sales $ 108 $ 78 $ (6) $ 180 $ — $ (1) $ — $ (1) $ 108 $ 77 $ (6) $ 179 (2) Other 8 1 (1) 8 — — — — 8 1 (1) 8 (3) Total Reve
Slide 20: YTD June 2023
YTD June 2023 (in millions, except for per share amounts) GAAP Special Items Operating (Non-GAAP) RD RT Corp FE RD RT Corp FE RD RT Corp FE (1) Electric sales $ 5,254 $ 978 $ (86) $ 6,146 $ — $ 7 (g) $ — $ 7 $ 5,254 $ 985 $ (86) $ 6,153 (2) Other 114 3 (26) 91 — — — — 114 3 (26) 91 (3) Total Revenue
Slide 21: YTD June 2022
YTD June 2022 (in millions, except for per share amounts) GAAP Special Items Operating (Non-GAAP) RD RT Corp FE RD RT Corp FE RD RT Corp FE (1) Electric sales $ 4,906 $ 891 $ (76) $ 5,721 $ — $ 3 (f) $ — $ 3 $ 4,906 $ 894 $ (76) $ 5,724 (2) Other 109 3 (26) 86 — — — — 109 3 (26) 86 (3) Total Revenue
Slide 22: YTD June 2023 vs YTD June 2022
YTD June 2023 vs YTD June 2022 (in millions, except for per share amounts) GAAP Special Items Operating (Non-GAAP) RD RT Corp FE RD RT Corp FE RD RT Corp FE (1) Electric sales $ 348 $ 87 $ (10) $ 425 $ — $ 4 $ — $ 4 $ 348 $ 91 $ (10) $ 429 (2) Other 5 — — 5 — — — — 5 — — 5 (3) Total Revenues 353 87
Slide 23: Quarterly Support
Quarterly Support TABLE OF CONTENTS (Slide) Financial Strategic & Regulatory Quarterly Support 24. FE Corp. Convertible Debt Issuance 26. 2023 Regulatory Calendar 32. TTM Actual Sales by Class 25. Pension/OPEB Update 27. RD Segment- State ROEs 33. TTM Weather-Adjusted Sales 28. JCP&L Base Rate Case
Slide 24: FE Corp. Convertible Debt Issuance
FE Corp. Convertible Debt Issuance Strategic Rationale Key Terms ■ Transaction serves as a cost-effective bridge loan until receiving full $3.5B(1) of proceeds Issuer FE Corp. from FET 30% interest sale and further solidifies credit profile improvement Pricing Date 5/1/2023 ■ Deployment of proceeds
Slide 25: Pension/OPEB Update
Pension/OPEB Update As of 4/30/23 Remeasurement ■ Remeasurement of pension plan as of 4/30/23 trigged by pension contribution – Recognized a non-cash, pre-tax pension mark-to-market adjustment gain of ~$59M in 2Q23 ■ Qualified pension funded status increased by ~$800M, or 89% at 4/30/23 – $750M cont
Slide 26: 2023 Regulatory Calendar
2023 Regulatory Calendar Select Proceedings Jurisdiction Regulatory Matter Key Dates • OH Grid Mod II • Application filed 7/15/22; Testimony due Sept. and Oct. 2023; Hearing to begin 10/24/23 • Electric Security Plan (ESP V) • Filed on 4/5/23; Intervenor testimony due 10/13/23; PUCO Staff testimony
Slide 27: RD Segment – State ROEs
RD Segment – State ROEs TTM 6/30/23 As updated in As filed in As updated in pending rate case pending rate case pending rate case 10% 7.3% 8.9% 7.7% 4.5% 4.0% 5% 0% (2) (2) (2) OH PA NJ WV MD Rate base at 6/30/23 $4.2B $6.4B $3.1B $3.2B $0.7B Equity/Total Capitalization(1) 49% 49% 52% 49% 54% ROE EP
Slide 28: JCP&L Base Rate Case Filing
JCP&L Base Rate Case Filing Filed 3/16/23; Updated 6/2/23 (Docket Number: ER23030144) Key Statistics Proposed rate adjustment supports investments that strengthen the energy grid, enhance the customer Proposed Proposed Current Current Filing experience and fund new low-income and senior citizen Dist
Slide 29: MD Base Rate Case Filing
MD Base Rate Case Filing Filed 3/22/23; Updated 5/16/23 (Case No. 9695) Key Statistics Proposed rate adjustment supports investments to build on recent reliability investment through additional energy grid Proposed Current Filing upgrades, ongoing tree trimming, inspections of lines, poles Distribut
Slide 30: Ohio Electric Security Plan (ESP) V Regulatory Filing
Ohio Electric Security Plan (ESP) V Regulatory Filing Filed 4/5/23 (Case Record: 23-0301-EL-SSO) Background Filing Summary • Utilities are required to file applications to establish either an ESP or a Market Rate Offer to • Focus on reliability, affordability, and stewardship provide customers defau
Slide 31: WV Regulatory Filing
WV Regulatory Filing Filed 5/31/23 (Case No: 23-0460-E-42T) Key Statistics Proposed rate adjustment supports distribution and generation investments, addresses depreciation rates for Proposed Current Filing generation assets and provides for additional funding for a Rate Base $3.2B(1) $2.5B(1) Summa
Slide 32: Actual Sales by Class
Actual Sales by Class Percent change vs. prior year 3Q22 4Q22 1Q23 2Q23 TTM 3.1% 1.8% 1.7% 2.0% 1.3% 1.1% 0.6% 0.0% -0.5% -1.0% -1.3% -2.1% -3.5% -4.2% -4.9% -5.3% -6.4% -7.1% -8.4% -10.8% Residential Commercial Industrial Total (MWh in thousands) 3Q21 3Q22 4Q21 4Q22 1Q22 1Q23 2Q22 2Q23 TTM 2Q22 TTM
Slide 33: Actual Weather-Adjusted Sales by Class
Actual Weather-Adjusted Sales by Class Percent change vs. prior year 3Q22 4Q22 1Q23 2Q23 TTM 5.4% 2.3% 1.8% 1.7% 1.5% 1.3% 1.1% 0.4% 0.3% 0.1% -0.4% -0.4% -0.5% -1.1% -1.2% -1.7% -1.6% -1.6% -2.4% -3.1% Residential Commercial Industrial Total (MWh in thousands) 3Q21 3Q22 4Q21 4Q22 1Q22 1Q23 2Q22 2Q2
Slide 34: Weather Impacts
Weather Impacts 500 400 300 200 100 0 150 400 650 900 1,150 HDD CDD HDD Norm CDD Norm 1,400 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 OH PA NJ WV MD Total Total EPS Impact(1) Days % Days % Days % Days % Days % Days % 2Q YTD HDD -15 -2% -
Slide 35: Credit Ratings
Credit Ratings As of 7/31/23 Issuer/Corporate Family Senior Secured Senior Unsecured Outlook/Watch Most Recent Ratings Actions S&P Moody's Fitch S&P Moody's Fitch S&P Moody's Fitch S&P Moody's Fitch FirstEnergy Corp.(*) BBB- Ba1 BBB- BB+ Ba1 BBB- P P S • On February 10, 2023, S&P changed the outlook
Slide 36: Credit Profile
Credit Profile As of 7/31/23 Focused on Investment-Grade ratings Strong Liquidity • FFO/Debt target of ~14%-15% • Available Liquidity: $4.0B, includes ~$105M of cash and • Remain focused on lowering FE Corp. Holdco debt as a cash equivalents percentage of total Balance Sheet debt • $4.5B Revolving c