Slide 1: Transforming For Our Future: Second Quarter 2023 Earnings
Transforming For Our Future Second Quarter 2023 Earnings Aug. 3, 2023
Slide 2: Cautionary Statements
Cautionary Statements Forward-looking Statements Statements in this presentation not based on historical facts are considered "forward-looking" and, accordingly, involve risks and uncertainties that could cause actual results to differ materially from those discussed. Although such forward-looking s
Slide 3: Strategic and Business Update
Strategic and Business Update Marty Lyons President and Chief Executive Officer, Ameren Corp. Ameren Missouri’s Montgomery Community Solar Energy Center in service March 2022
Slide 4: Our Strategic Plan
Our Strategic Plan INVEST ENHANCE OPTIMIZE Enhance regulatory Invest in rate regulated Optimize operating frameworks and advocate energy infrastructure performance for responsible policies To capitalize on opportunities to benefit our customers, shareholders and the environment Second Quarter 2023 E
Slide 5: Our Sustainability Value Proposition
Our Sustainability Value Proposition ENVIRONMENTAL STEWARDSHIP SOCIAL IMPACT • Accelerating transition to a cleaner and more diverse portfolio • Delivered value to customers in 2022 while focused on safety ‒ Target carbon reductions from 2005 levels: 60% by 2030; 85% by 2040; net ‒ Ameren has ranked
Slide 6: Earnings and Guidance Summary
Earnings and Guidance Summary • Remain focused on safely executing strategic plan Diluted EPS • Key Q2 earnings variance drivers 2022 vs. 2023 ↑ Earnings on increased infrastructure investments across all $1.90 business segments $1.77 ↑ Lower Ameren Missouri and Ameren Illinois natural gas operation
Slide 7: 2023 Strategic Business Objectives
2023 Strategic Business Objectives Invest • Continue robust infrastructure investment in electric, natural gas and transmission infrastructure projects • Submit bids for MISO LRTP Tranche 1 competitive projects and support analysis for potential Tranche 2 projects Enhance • Constructively conclude A
Slide 8: Executing Our Strategy
Executing Our Strategy Invest • $1.8 billion of capital invested1 benefiting our customers and communities – Significant infrastructure investment in electric, natural gas and transmission infrastructure projects Capital Expenditures • In May, submitted bid for one MISO LRTP Tranche 1 competitive pr
Slide 9: Illinois Energy Legislation
Illinois Energy Legislation Enhancing regulatory frameworks and advocating for responsible energy and economic policies Ameren Transmission • Transmission Efficiency and Cooperation Law, HB 34451, passed by General Assembly in May 2023 – Provides incumbent utilities, including Ameren, the right of f
Slide 10: MISO Long-Range Transmission Planning Roadmap
MISO Long-Range Transmission Planning Roadmap Investing in rate regulated energy infrastructure to benefit our customers, shareholders and the environment • In July 2022, MISO approved Tranche 1 projects of ~$10 billion – $1.8 billion1 assigned to Ameren; planning, design work and procurement underw
Slide 11: Ameren Missouri Solar Projects
Ameren Missouri Solar Projects Investing in rate regulated energy infrastructure to benefit our customers, shareholders and the environment Cass Bowling Huck Finn1 Boomtown2 Split Rail Vandalia County Green Facility size 200-MW 150-MW 300-MW 150-MW 50-MW 50-MW Agreement Build- Build- Build- Developm
Slide 12: Robust Investment Opportunities Across All Businesses Over Next Decade
Robust Investment Opportunities Across All Businesses Over Next Decade1 Modernizing the grid and investing in cleaner generation Investment Plan 2023-2027 $48B+ ($ billions) Strong Pipeline of Regulated $19.7 Infrastructure Investments $3.8 2023-2032 $1.9 • Modernize electric and gas transmission an
Slide 13: Long-term Total Return Outlook
Long-term Total Return Outlook • Remain on track to deliver strong long-term earnings growth – Expect 6% to 8% EPS CAGR from 2023-20271 • Using 2023 original EPS guidance range midpoint of $4.35 as the base 2022-2027E Regulated Five-Year Rate – Expect 8.4% rate base CAGR from 2022-20272 Infrastructu
Slide 14: Financial Update
Financial Update Michael Moehn Senior Executive Vice President and Chief Financial Officer, Ameren Corp.
Slide 15: 2023 Second Quarter Earnings Analysis – Key Drivers
2023 Second Quarter Earnings Analysis – Key Drivers ↑ Ameren Illinois Electric Distribution earnings — Increased investments in infrastructure; higher allowed ROE Diluted EPS2 ↑ Ameren Transmission earnings — Increased investments in infrastructure Q2 2022 vs. Q2 2023 ↑ Ameren Illinois Natural Gas e
Slide 16: 2023 EPS Guidance and Select Balance of the Year Considerations
2023 EPS Guidance and Select Balance of the Year Considerations • Reaffirm 2023 diluted EPS guidance range of $4.25 to $4.45 2023E • Select considerations for Q3-Q4 2023 EPS compared to Q3-Q4 2022 EPS Diluted EPS – Ameren Missouri new electric service rates effective July 9, 2023: Q3 ~+$0.09; Q4: ~+
Slide 17: Missouri Electric Regulatory Matters
Missouri Electric Regulatory Matters Electric Distribution • In June 2023, Commission approved a stipulation and agreement with MoPSC Staff, Office of Public Counsel and certain intervenors for a $140 million annual revenue increase1 – Allowed ROE, capital structure2 and rate base3 not specified – C
Slide 18: Illinois Multi-Year Rate Plan
Illinois Multi-Year Rate Plan Electric Distribution • Multi-Year Rate Plan (MYRP) filed with ICC in Jan. 2023; request driven by infrastructure investment and cost of capital – On July 13, ICC Staff recommended cumulative increase of $317 million in revenues Procedural Schedule – On July 27, Ameren
Slide 19: Illinois Regulatory Matters
Illinois Regulatory Matters Electric Distribution • In July 2023, filed updated request with ICC for $125 million reconciliation adjustment to the 2022 revenue requirement reflecting actual costs – Based on 2022 year-end rate base, ROE and equity ratio – In June, ICC Staff recommended $109 million r
Slide 20: Financing, Credit Ratings and External Debt Balances
Credit Ratings2 and Financing External Debt Balances Debt Financing • On Mar. 13, 2023, Ameren Missouri issued $500 million of 5.45% first mortgage bonds due 2053 – Proceeds used to fund capital expenditures and refinance short term debt As of June 30, 2023 $ in millions Moody's S&P • On May 31, 202
Slide 21: Summary
Summary Expect to deliver strong earnings growth in 2023 with guidance in a range of $4.25 to $4.45 per diluted share Successfully executing our strategy; well-positioned for future growth • Focused on delivering safe, reliable and cleaner energy while keeping a focus on affordability Strong long-te
Slide 22: Appendix
APPENDIX
Slide 23: Four Constructive Regulatory Frameworks
Four Constructive Regulatory Frameworks FERC-regulated: Formula ratemaking Ameren • Allowed ROE is 10.52%, includes MISO participation adder of 50 basis points; ~56% average equity ratio Transmission • Rates reset each Jan. 1 based on forward-looking calculation with annual reconciliation ICC-regula
Slide 24: 2023 Earnings Analysis for Six Months Ended June 30
2023 Earnings Analysis for Six Months Ended June 30 ↑ Ameren Illinois Electric Distribution earnings — Increased investments in infrastructure; higher allowed ROE ↑ Ameren Transmission earnings Diluted EPS — Increased investments in infrastructure ↑ Ameren Illinois Natural Gas earnings YTD June 2022
Slide 25: Ameren Missouri Smart Energy Plan
Ameren Missouri Smart Energy Plan filed with MoPSC on Feb. 16 Investing in rate regulated energy infrastructure to benefit our customers, shareholders and the environment • $1.6 billion invested in 2022 to support reliability, address aged infrastructure and provide clean energy to the customers and
Slide 26: Proposed 2022 Change to the 2020 Missouri IRP
Proposed 2022 Change to the 2020 Missouri IRP1 2 2 2 Key outcomes meet customers’ rising needs and expectations for reliable, affordable and clean energy sources • Targets substantial reductions in carbon emissions2; 60% by 2030, 85% by 2040 and net-zero by 2045 • All coal-fired energy centers retir
Slide 27: Missouri IRP Preferred Plans
Missouri IRP Preferred Plans Key Actions 2020 IRP 2022 IRP Specifics Carbon Emission Reduction1 50% by 2030 60% by 2030 • Includes both Scope 1 and 2 emissions including other 85% by 2040 85% by 2040 greenhouse gas emissions of methane, nitrous oxide and Net Zero by 2050 Net Zero by 2045 sulfur hexa
Slide 28: Building a Brighter and Cleaner Energy Future
Building a Brighter and Cleaner Energy Future Innovative Programs to Meet Customer Needs and Rising Expectations Utility-owned solar Subscription program generation in MO that available to MO residential benefits diverse Neighborhood Community and small business communities with jobs training, solar
Slide 29: Ameren Illinois Electric Distribution Multi-Year Rate Plan Performance Metrics
Ameren Illinois Electric Distribution Multi-Year Rate Plan Performance Metrics Adjustment / Metric Description Incentive (+/- bps) Improve System Average Interruption Duration Index (SAIDI) systemwide; improve interruption and 1. Reliability duration outages (SAIDI, SAIFI, CEMI, and CELID) in enviro
Slide 30: Rush Island Energy Center
Rush Island Energy Center Ameren Missouri • In 2021, the U.S. Court of Appeals ordered installation of a scrubber at the Rush Island Energy Center; Ameren Missouri subsequently announced its intent to retire the energy center • In July 2022, MISO issued final Attachment Y report – Designated both Ru
Slide 31: FERC Regulatory Matters
FERC Regulatory Matters Ameren Transmission • In Apr. 2021, FERC issued supplemental NOPR that would remove incentive adder for utilities that have been members of an RTO for three years or more – Current allowed base ROE of 10.02% (10.52% including 50 bps RTO participation adder) – 50 bps change in
Slide 32: Focused on Disciplined Cost Management to Drive Affordability
Focused on Disciplined Cost Management to Drive Affordability Optimize operating performance to benefit of our customers, shareholders and the environment • Track record of disciplined cost management – Expect flat operations and maintenance expenses in 2023 as compared to 2022 – Target flat operati
Slide 33: Federal Energy Legislation
Federal Energy Legislation • Inflation Reduction Act enacted in Aug. 2022 – Enhances affordability of the clean energy transition for customers in Missouri and Illinois • Ameren Missouri customers expected to save more than ~$1 billion by 2032, or an average of more than ~4% per year, compared to wh
Slide 34: Long-Term Debt Maturities and Interest Rates
Long-Term Debt Maturities and Interest Rates Issuer 20231 2024 2025 2026 2027 $450 million 2.50% $350 million 3.65% $500 million 1.95% Ameren Corp. senior unsecured notes senior unsecured notes senior unsecured notes $350 million 3.50% $400 million 2.95% Ameren Missouri senior secured notes senior s
Slide 35: Solid Sustainability Ratings
Solid Sustainability Ratings AAA 0 A Oct. 2022 July 2023 Dec. 2022 A- Water A 27.2 Medium Risk C Climate Range: Range: Range: A-F AAA-CCC 0-100 (A is best) (AAA is best) (Lower is better) CCC 100 F Ameren Corp. 97.1 Trendsetter Second Quarter 2023 Earnings | Aug. 3, 2023 35
Slide 36: Investing in the Energy Grid
Investing in the Energy Grid • Investing to modernize energy grid, making it cleaner, safer, more reliable, resilient and secure – Ameren Missouri Smart Energy Plan and Ameren Illinois MYRP filed with the MoPSC and ICC, 2022-2027E Regulated respectively, supporting infrastructure investment to moder
Slide 37: Ameren's Estimated Coal-Related Revenues in 2022
Ameren’s Estimated Coal-Related Revenues in 2022 Return on Investment Revenues Cost Recovery3 Revenues $2B1 x ($99M x $475M + 52% x $2B1 x 48% 25%) / (1 $168M x $138M + 9.50%2 = x 3.91% = - 25%) 20%1 = $171M = $99M $38M $33M $34M $784M $7,957M 12% Return on Interest Tax Expense Property Fuel, other
Slide 38: Investor Relations Calendar
Investor Relations Calendar AUGUST 2023 SEPTEMBER 2023 SUN. MON. TUES. WED. THUR. FRI. SAT. SUN. MON. TUES. WED. THUR. FRI. SAT. 1 2 3 4 5 1 2 Q2 Quiet Q2 Period Earnings Cont’d Conf. Call 6 7 8 9 10 11 12 3 4 5 6 7 8 9 UBS Fireside Chat / Barclays Conf. 13 14 15 16 17 18 19 10 11 12 13 14 15 16 20
Slide 39: Select Regulatory and Legislative Matters
Select Regulatory and Legislative Matters Missouri Public Service Commission • Order approving electric rate review filling: Docket No. ER-2022-0337 • Orders approving CCNs for Huck Finn and Boomtown Solar Projects: Docket No. EA-2022-0244 and EA-2022-0245, respectively • Pending multi-project Certi
Slide 40: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations AFUDC – Allowance for funds used during construction LRTP – Long Range Transmission Planning ALJ – Administrative Law Judge LT – Long-term ATXI – Ameren Transmission Company of Illinois M – Million B – Billion MEEIA – Missouri Energy Efficiency Investment Act BOD