Evergy, Inc. · NASDAQ:EVRG
Evergy — Q1 2023 Earnings Presentation
18 slides from Evergy's earnings presentation, May 5, 2023
Slide 1: First Quarter 2023 Earnings Call
First Quarter 2023 Earnings Call May 5, 2023
Slide 2: Important Information
Important Information Forward Looking Statements Statements made in this document that are not based on historical facts are forward-looking, may involve risks and uncertainties, and are intended to be as of the date when made. Forward-looking statements include, but are not limited to, statements r
Slide 3: Agenda
Agenda David Campbell, President & CEO • First quarter highlights • Regulatory and legislative update • ESG progress Kirk Andrews, EVP & CFO • First quarter results • Retail sales trends • 2023 outlook 3 First Quarter 2023 Earnings Presentation
Slide 4: Business Update
Business Update David Campbell President & CEO
Slide 5: First Quarter Highlights
First Quarter Highlights • First Quarter 2023 EPS Adjusted EPS1 • GAAP: $0.62 • Adjusted1: $0.59 $0.59 $0.56 • Primary Earnings Drivers Sales, transmission margin, O&M Weather, D&A, interest expense • Solid operational execution, including OSHA4 recordables and DARTs4 trending favorably relative to
Slide 6: Evergy Kansas Central Rate Request
Evergy Kansas Central Rate Request • Revenue request includes infrastructure investment to improve reliability, enhance customer service and enable transition to cleaner resources • Substantially offset by $89M of customer savings and cost reductions Case Attributes $204.1 Million Revenue Increase R
Slide 7: Evergy Kansas Metro Rate Request
Evergy Kansas Metro Rate Request • Revenue request includes infrastructure investment to improve reliability, enhance customer service and enable transition to cleaner resources • Substantially offset by $39M of customer savings and cost reductions Case Attributes $14.2 Million Revenue Increase Requ
Slide 8: Regulatory & Legislative Updates
Regulatory & Legislative Updates Kansas • Kansas Central & Kansas Metro Rate Cases (23-EKCE-775-RTS): filed on April 25th; awaiting procedural schedule • Transmission Delivery Charge Bill (HB 2225): signed into law; becomes effective January 1, 2024 • Integrated Resource Plan: plan to file annual up
Slide 9: Environmental, Social and Governance Score Progress
Environmental, Social and Governance Score Progress 1 Corporate Sustainability Assessment (CSA) = Better = Better 10 100 8 8 8 7 7 7 7 5 52 4 44 3 3 3 31 22 0 0 2019 2020 2021 2022 2019 2020 2021 2022 Environmental Social Governance Recent Highlights: • First time disclosures in 2022: full CDP C
Slide 10: Core Tenets of Evergy Strategy
Core Tenets of Evergy Strategy Affordability: Keeping rates affordable and Affordability improving regional rate competitiveness Reliability: Targeting top- tier performance in reliability, customer service and generation Sustainability: Advancing emissions reductions and fleet transition to a
Slide 11: Financial Update
Financial Update Kirk Andrews Executive Vice President & CFO
Slide 12: First Quarter 2023 Adjusted EPS
First Quarter 2023 Adjusted EPS1 Adjusted EPS1 Drivers (0.07) 0.04 $0.59 0.12 $0.56 Increased (0.13) infrastructure investment and 0.09 0.02 Primarily lower new (0.08) depreciation Transmission generation 0.04 maintenance rates partially infrastructure Increased Primarily investment and lower labor
Slide 13: Retail Sales Trends
Retail Sales Trends Weather-Normalized 2023 Retail Sales Growth Unemployment Rate3 Compared to prior year1,2 15% U.S. KC Metro Kansas 12% 3.6% 3.0% 9% Total Retail 6% 2.1% 3% -2.3% 0% 01/2018 04/2018 07/2018 10/2018 01/2019 04/2019 07/2019 10/2019 01/2020 04/2020 07/2020 10/2020 01/2021 04/2021 07/2
Slide 14: Strong Growth Outlook
Strong Growth Outlook • Continuing track record of consistent execution Targeted Adjusted EPS Growth1 • 2023 Adjusted EPS1 guidance: $3.55-3.75 • Reaffirming 20212 to 2025E annualized Adjusted 6 - 8% $4.17–$4.49 EPS1 growth target of 6% to 8% CAGR2 $3.55-3.75 • Targeting dividend growth in line with
Slide 15: Q&A
Q&A 15 First Quarter 2023 Earnings Presentation
Slide 16: Appendix
Appendix
Slide 17: GAAP to Non-GAAP EPS Reconciliation
GAAP to Non-GAAP EPS Reconciliation Adjusted EPS1 Original 2021E 2023E 2025E GAAP EPS $3.14 - $3.34 $3.55 - 3.75 $4.17 - 4.49 Executive transition costs, pre-tax 0.03 - - Advisor expenses, pre-tax 0.05 - - Income tax (benefit) expense (0.02) - - 1 Adjusted EPS (non-GAAP) $3.20 - $3.40 $3.55 - 3.75 $
Slide 18: First Quarter GAAP to Non-GAAP EPS Reconciliation
First Quarter GAAP to Non-GAAP EPS Reconciliation a) Reflects revenues collected from customers for the return on investment of the retired Sibley Station in 2022 that are included in operating revenues on the consolidated statements of comprehensive income. b) Reflects mark-to-market gains or losse