Exelon Corporation · NASDAQ:EXC
Exelon — Investor Presentation (February 2022)
47 slides from Exelon's investor presentation, Feb 25, 2022
Slide 1: Winter and Spring 2022 Investor Meetings
Winter and Spring 2022 Investor Meetings
Slide 2: Cautionary Statements Regarding Forward-Looking Information
2 Cautionary Statements Regarding Forward-Looking Information This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. Words such as “could,” “may,” “expects,” “anticipates,”
Slide 3: Non-GAAP Financial Measures
3 Non-GAAP Financial Measures Exelon reports its financial results in accordance with accounting principles generally accepted in the United States (GAAP). Exelon supplements the reporting of financial information determined in accordance with GAAP with certain non-GAAP financial measures, including
Slide 4: Who is Exelon?
4 Who is Exelon? 1.3 million Electric customers 0.7 million Gas customers 2022E Rate Base: $9.0B Territory: MD Main City: Baltimore Population: 0.6M BGE 4.1 million Electric customers 2022E Rate Base: $19.3B Territory: IL Main City: Chicago Population: 2.7M ComEd 0.6 million Electric customers 2022E
Slide 5: Premier Utility by Scope and Scale
5 Premier Utility by Scope and Scale Note: reflects most recent available data as of February 25, 2022 (1) Customer count reflects the sum of Exelon’s total gas and electric customer base (2) Includes transmission, distribution and generation; represents 2022E rate base projections as disclosed by t
Slide 6: Delivering Sustainable Value as the Premier T&D Utility
6 Delivering Sustainable Value as the Premier T&D Utility Industry-Leading Platform Leading ESG Profile Operational Excellence Financial Discipline Sustainable Value SUSTAINABLE VALUE ✓ Strong Growth Outlook: Targeting investment of ~$29B of T&D capital from 2022- 2025 to meet customer needs, result
Slide 7: Diverse, Fully Regulated T&D Utility Servicing Large Urban Areas
7 Diverse, Fully Regulated T&D Utility Servicing Large Urban Areas Across Seven Regulatory JurisdictionsFully Regulated, Transmission and Distribution (1) Represents 2022E rate base (2) Other includes long-term regulatory assets, which generally earn a return consistent with rate base, including Ene
Slide 8: Best-in-Class Operations
8 Best-in-Class Operations Note: reflects 2020 company performance (the latest comparable data set for Exelon and its peers); peer data reflects only a subset (top 10) of the panel of companies that report operational metrics (1) Quartiles are calculated using reported results by the full panel of p
Slide 9: Constructive Regulatory Mechanisms
9 Constructive Regulatory Mechanisms (1) Expected 2017-2020E rate base growth as of December 31, 2016 (calculated from 2016E base year) (2) Reflects expected rate base growth for 2022E-2025E (calculated from 2021E base year) (3) Figure assumes implementation of multi-year plans for DPL Maryland and
Slide 10: Exelon is an Industry Leader in ESG
10 Exelon is an Industry Leader in ESG DIVERSITY, EQUITY & INCLUSION (DE&I) • Executive Committee is 59% women or people of color • Created Executive-led Racial Equity Task Force in 2020 • Launched $36 million Racial Equity Capital Fund and $3 million Exelon HBCU Corporate Scholars Program WORKFORCE
Slide 11: Reducing Operations-Driven Emissions by 50% by 2030 and Net-Zero by 2050
11 COMPANY AND OPERATIONS Reducing Operations-Driven Emissions by 50% by 2030 and Net-Zero by 2050 to Align with National Decarbonization Goals COMMUNITY SUPPORT Areas for Engagement and Advocacy Path to Clean: Reaching a Net-Zero Footprint Electrify 30% of our light and heavy-duty vehicle fleet by
Slide 12: Financial Outlook
12 Financial Outlook
Slide 13: Customer Needs and Industry Trends Continue to Support Investment Growth
13 Customer Needs and Industry Trends Continue to Support Investment Growth $6.4B of electric transmission investment projected for 2022-2025 $3.7B of gas delivery investment projected for 2022-2025 $18.9B of electric distribution investment projected for 2022-2025 $21B $23B $26B $27B $48B $52B $56B
Slide 14: Long-Term Earnings Growth Supports a Sustainable Dividend
14 Projected Dividend Payout(4)Targeting 6-8% Operating Earnings* Growth to 2025(1) Long-Term Earnings Growth Supports a Sustainable Dividend $2.08(2) 2021 2022E $2.18-$2.32(3) $1.35 2022E Expect 6-8% operating EPS* growth through 2025 Project 6-8% dividend growth in-line with operating EPS* through
Slide 15: Exelon's Trailing Twelve Month Earned ROEs
15 Exelon’s Trailing Twelve Month Earned ROEs* 9.5% 9.4% 9.6% 10.0% 8.7% 9.2% 2016 2017 20192018 20212020 Note: Represents the twelve-month periods December 31, 2016-2021 for Exelon’s utilities (excludes Corp). Earned ROEs* represent weighted average across all lines of business (Electric Distributi
Slide 16: Managing Costs Below the Rate of Inflation
16 Managing Costs Below the Rate of Inflation Focused on Managing Costs and Customer Affordability $ in millions • Since 2016, adjusted O&M* is projected to increase 1.4% through 2022, which is a rate well below inflation that benefits customer bills • Exelon is prepared to successfully manage infla
Slide 17: 2022-2025 Financing Plan
17 2022-2025 Financing Plan ~$14 ~$29 ~($5) ~$5 ~$14 Utility Investment 2022-2025 Debt RefinanceAdjusted Cash from Operations*(1) 2022-2025 Debt Maturity Debt Issuance(2) ~$1 Equity Issuance $ in billions Note: Financing plan is subject to change (1) Adjusted Cash from Operations* is net of common d
Slide 18: Maintaining a Strong Balance Sheet is a Top Financial Priority
18 Moody’s CFO (Pre-WC) / Debt %*S&P FFO / Debt %* Maintaining a Strong Balance Sheet is a Top Financial Priority Credit Ratings(3) ExCorp ComEd PECO BGE ACE DPL Pepco Moody’s Baa2 A1 Aa3 A3 A2 A2 A2 S&P BBB A A A A A A Fitch BBB A A+ A A A A 0% 12% 13% 14% 15% 12% 2022-2024E Average(1) Exelon Downg
Slide 19: Adjusted Operating Earnings Guidance and Key Year-over-Year Drivers
19 Key Year-over-Year DriversAdjusted Operating Earnings* Guidance(1) 2022 Adjusted Operating Earnings* Guidance Incremental investments in utility infrastructure PECO electric and gas distribution rate cases Depreciation & amortization $0.77 $0.62 $0.53 $0.43 ($0.26) $2.08(2) ComEd 2021 PHI 2022 Or
Slide 20: Appendix
20 Appendix
Slide 21: Utility Capex and Rate Base vs. Previous Disclosures
21 Analyst Day 2022 Capital Expenditures ($M) Analyst Day 2022 Rate Base ($B) Q4 2020 Capital Expenditures ($M) Q4 2020 Rate Base ($B) 4,225 4,475 4,500 4,600 1,500 1,450 1,475 1,375 825 825 6,725 2021E 2022E 2024E 750 2023E 6,550 775 6,725 6,725 4,350 4,525 4,650 4,875 4,850 1,400 1,500 1,525 1,600
Slide 22: ComEd Capital Expenditure Forecast
22 Analyst Day 2022 Capital Expenditures ($M)Q4 2020 Capital Expenditures ($M) 1,925 2,025 2,050 2,000 1,975 450 450 500 575 675 2,650 2025E 2,550 2021 2022E 2023E 2,475 2024E 2,375 2,575 1,925 2,000 1,950 1,825 475 450 550 500 2,350 2024E 2,400 2021E 2023E2022E 2,450 2,500 Electric Transmission Ele
Slide 23: PECO Capital Expenditure Forecast
23 Analyst Day 2022 Capital Expenditures ($M)Q4 2020 Capital Expenditures ($M) 825 850 950 1,075 1,100 100 175 75 100 125 350 325 325 375 375 2021 2022E 2023E 1,375 1,300 1,325 2024E 2025E 1,550 1,575 750 850 925 1,025 175 125 75 75325 300 275 300 1,300 2023E2021E 2022E 2024E 1,2751,275 1,375 Gas De
Slide 24: BGE Capital Expenditure Forecast
24 Analyst Day 2022 Capital Expenditures ($M)Q4 2020 Capital Expenditures ($M) 475 500 450 475 500 300 275 400 400 400 400 475 475 500 500 1,325 2025E 1,200 2022E 2024E2021 2023E 1,225 1,375 1,400 450 475 450 475 325 325 375 325 425 450 400 400 2021E 2022E 2023E 1,200 2024E 1,2251,200 1,250 Gas Deli
Slide 25: PHI Consolidated Capital Expenditure Forecast
25 Analyst Day 2022 Capital Expenditures ($M)Q4 2020 Capital Expenditures ($M) 1,125 1,175 1,200 1,325 1,275 550 600 525 550 550 100 100 75 2024E 75 2022E2021 2023E 75 2025E 1,750 1,850 1,825 1,950 1,875 1,075 1,125 1,175 1,275 525 550 475 475 5075 2022E 1,700 2021E 50 2023E 75 2024E 1,750 1,725 1,8
Slide 26: ACE Capital Expenditure Forecast
26 Analyst Day 2022 Capital Expenditures ($M)Q4 2020 Capital Expenditures ($M) 250 300 300 300 275 200 175 150 175 175 2024E2021 475 2023E2022E 2025E 450425 475 450 200 200 250 225 175 150 125 125 2021E 2022E 2024E 350 2023E 350 375 350 Electric DistributionElectric Transmission ACE Capital Expendit
Slide 27: DPL Capital Expenditure Forecast
27 Analyst Day 2022 Capital Expenditures ($M)Q4 2020 Capital Expenditures ($M) 250 250 250 300 275 100 150 150 150 175 75 100 100 75 75 2025E 475 425 2021 2022E 2023E 2024E 500 525 525 225 200 225 275 100 150 125 125 75 50 50 75 2021E 425 2022E 2023E 425 2024E 400 450 Electric TransmissionGas Delive
Slide 28: Pepco Capital Expenditure Forecast
28 Analyst Day 2022 Capital Expenditures ($M)Q4 2020 Capital Expenditures ($M) 650 625 650 725 700 250 275 225 225 200 2021 900900 2025E2022E 900 2023E 2024E 950 900 650 725 725 775 250 275 200 225 2024E2022E 925 2021E 2023E 1,000 925 1,000 Electric Transmission Electric Distribution Pepco Capital E
Slide 29: Undergrounding Cable Initiative and Infrastructure Programs
29 Undergrounding Cable Initiative • DC Power Line Undergrounding is a multi-year program to underground more than 20 of the most vulnerable overhead distribution lines, spanning over 6-8 years with work that began in early 2019 • Expected to improve resiliency against major storms and to improve re
Slide 30: Advancing Clean and Affordable Energy Choices
30 Advancing Clean and Affordable Energy Choices Consistently Delivering Top Quartile Customer Satisfaction Scores(1) Rates 16% Below Largest U.S. Metro Cities Energy Efficiency • Offer nationally recognized energy efficiency portfolios, including incentives and behavioral programs across all our ju
Slide 31: Our Jurisdictions are Driving to Clean
31 Maryland Pennsylvania Illinois New Jersey Delaware District of Columbia Our Jurisdictions are Driving to Clean (1) Delaware and D.C. have voluntary energy efficiency savings targets; all others have state-mandated targets. D.C. energy efficiency program has been filed, pending approval. • 40% red
Slide 32: 2021 Electric and Gas Customer Mix
32 2021 Electric Customer Mix (% of Volumes) (1) Commercial & Industrial (C&I) 66% 59% 55% 62% 55% 52% Residential 33% 39% 44% 35% 45% 48% Public Authorities/Other 1% 2% 1% 3% 0% 1% 2021 Gas Customer Mix (% of Volumes) (1) Commercial & Industrial (C&I) - 25% 50% - 27% - Residential - 46% 37% - 39% -
Slide 33: Regulatory Recovery Mechanisms
33 • Distribution System Improvement Charge (DSIC) tracker provides a mechanism to begin recovering gas and electric infrastructure investments for reliability every six months • Strategic Infrastructure Development and Enhancement (STRIDE) program allows for contemporaneous recovery of the accelera
Slide 34: Revenue Decoupling Mitigates Impacts of Load Fluctuations
34 Non-Decoupled Load Volumes (GWh)(3)Revenue Decoupling Mitigates Load Fluctuations Revenue Decoupling Mitigates Impacts of Load Fluctuations 39% 59% PECO 41% 59% DPL DE 36,421 7,849 C&I Residential PECO DPL DE ComEd Pepco DPL MD ACE BGE Non-Decoupled Decoupled ~77% of Exelon’s distribution revenue
Slide 35: Approved Electric Distribution Rate Case Financials
35 Approved Electric Distribution Rate Case Financials Revenue Requirement Increase/(Decrease) Allowed ROE Common Equity Ratio Rate Effective Date ComEd (Electric) $45.8M 7.36% 48.70% Jan 1, 2022 PECO (Electric) $132.0M N/A(1) N/A(1) Jan 1, 2022 BGE (Electric) (2) $139.9M 9.50% 52.00% Jan 1, 2021 Pe
Slide 36: Approved Electric Transmission Formula Rate Financials
36 Approved Electric Transmission Formula Rate Financials Revenue Requirement Increase/(Decrease)(1) Allowed ROE(2) Common Equity Ratio Rate Effective Date(3) ComEd $45M 11.50% 54.90% Jun 1, 2021 PECO $24M 10.35% 53.69% Jun 1, 2021 BGE $65M 10.50% 52.60% Jun 1, 2021 Pepco $12M 10.50% 50.27% Jun 1, 2
Slide 37: Exelon Long-Term Debt Maturity Profile
37 Exelon Long-Term Debt Maturity Profile(1,2) LT Debt Balances (as of 12/31/21)(1,2) BGE $4.0B ComEd $10.0B PECO $4.4B PHI $7.5B Corp(3) $7.4B Exelon $33.3B ($M) As of 12/31/2021 1,150 850 833 807 750 360 997 303 1,250 1,178 258 763 295 833 1,430 675 700 600 1,400 650 741 750 1,275 2,150 1,550 750
Slide 38: EPS Sensitivities
38 EPS* Sensitivities Interest Rate Sensitivity to +50 BP 2022E 2023E ComEd Distribution ROE (1) $0.04 $0.04 Pension Expense (2) $(0.00) $(0.00) Cost of Debt (3) $(0.01) $(0.01) Exelon Consolidated Effective Tax Rate 13.6% 15.1% Exelon Consolidated Cash Tax Rate 0.3% 4.1% Note: reflects EPS* sensiti
Slide 39: Exelon Distribution Rate Case Updates
39 Exelon Distribution Rate Case Updates Rate Case Schedule and Key Terms Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Revenue Requirement Requested ROE / Equity Ratio Expected Order $13.5M (1,2) 9.60% / 50.37% Sep 15, 2021 (3) $132.0M (1,4) N/A / N/A (4) Nov 18, 2021 $45.8M (1,5) 7.36% / 48.70%
Slide 40: Reconciliation of Non-GAAP Measures
40 Reconciliation of Non-GAAP Measures
Slide 41: Projected GAAP to Operating Adjustments
41 Projected GAAP to Operating Adjustments • Exelon’s projected 2022 adjusted (non-GAAP) operating earnings excludes the earnings effects of the following: − Costs related to the separation; − Adjustment to deferred income taxes as a result of changes in forecasted apportionment; and − Other items n
Slide 42: GAAP to Non-GAAP Reconciliations
42 GAAP to Non-GAAP Reconciliations(1) S&P Moody’s GAAP Operating Income + Depreciation & Amortization = EBITDA - Cash Paid for Interest +/- Cash Taxes +/- Other S&P FFO Adjustments = FFO (a) Long-Term Debt + Short-Term Debt + Underfunded Pension (after-tax) + Underfunded OPEB (after-tax) + Operatin
Slide 43: Q4 YTD GAAP EPS Reconciliation
43 Q4 YTD GAAP EPS Reconciliation Twelve Months Ended December 31, 2021 ComEd PECO BGE PHI Other Exelon 2021 GAAP Earnings (Loss) Per Share $0.76 $0.51 $0.42 $0.57 ($0.31) $1.95 Mark-to-market impact of economic hedging activities - - - - 0.01 0.01 Separation costs 0.01 0.01 0.01 0.01 0.02 0.05 COVI
Slide 44: Exelon Operating TTM ROE Reconciliation
44 GAAP to Non-GAAP Reconciliations Exelon Operating TTM ROE Reconciliation ($M)(1) 2016 2017 2018 2019 2020 2021 Net Income (GAAP) $1,103 $1,704 $1,836 $2,065 $1,737 $2,225 Operating Exclusions $461 ($24) $32 $30 $246 $82 Adjusted Operating Earnings $1,564 $1,680 $1,869 $2,095 $1,984 $2,307 Average
Slide 45: Exelon Adjusted O&M Reconciliation
45 GAAP to Non-GAAP Reconciliations Exelon Adjusted O&M Reconciliation ($M)(1) 2016 2017 2018 2019 2020 2021 2022 GAAP O&M $4,300 $4,025 $4,150 $4,000 $4,375 $4,200 $4,350 Regulatory Required O&M ($175) ($300) ($200) ($175) ($175) ($175) ($225) Operating Exclusions ($400) - ($50) ($50) ($275) ($75)
Slide 46: Thank you
Thank you Please direct all questions to the Exelon Investor Relations team: InvestorRelations@ExelonCorp.com 312-394-2345
Slide 47: C\ exelon’
C\ exelon’