Edison International · NYSE:EIX
Edison International — Q2 2021 Earnings Presentation
21 slides from Edison International's earnings presentation, Jul 29, 2021
Slide 1: Second Quarter 2021 Financial Results
Second Quarter 2021 Financial Results July 29, 2021
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: 2021 GRC track 1: CPUC's proposed decision supports critical investments
2021 GRC track 1: CPUC’s proposed decision supports critical investments and provides foundation through 2023 On July 9, CPUC issued proposed decision (PD) in track 1 Capex under PD-authorized levels of SCE’s 2021 GRC, focused on balancing necessary would be $14.0 billion for 2021–2023 spending on s
Slide 4: SCE's opening comments focus on addressing covered conductor program scope and other critical issues
SCE’s opening comments focus on addressing covered conductor program scope and other critical issues SCE’s opening comments will note several areas that, if corrected, would result in a balanced final decision PD’s cuts to wildfire Proposes $1.86 billion, or 54%, cut to Wildfire Covered Conductor Pr
Slide 5: SCE's execution of its wildfire mitigation strategy is reducing risk of wildfires
SCE’s execution of its wildfire mitigation strategy is reducing risk of wildfires associated with utility infrastructure 2021 Completed 2021 Completed Completed/Target Since 2018 Completed/Target 106% Since 2018 100/375 27% 1,160+ Distribution 173,200/163,000 completed 757,600+ weather stations inst
Slide 6: SCE is making meaningful progress in mitigating wildfire risk for its customers
SCE is making meaningful progress in mitigating wildfire risk for its customers Covered conductor Expanded vegetation High fire risk has reduced faults, management inspection program which could lead to and tree removal has has reduced ignitions reduced line contact remediation needs 69% 50% 66% few
Slide 7: Sustainability is central to Edison's vision to lead the transformation of the electric power industry
Sustainability is central to Edison’s vision to lead the transformation of the electric power industry We have made long-term, public commitments related to clean energy, transportation electrification, diversity and inclusion, and safety Environmental Social Governance Targeting 100% carbon-free Re
Slide 8: Second Quarter Earnings Summary
Second Quarter Earnings Summary Q2 2021 Q2 2020 Variance Key SCE EPS Drivers2 Higher revenue3 $ 0.10 Basic Earnings Per Share (EPS) CPUC revenue 0.06 SCE $ 0.95 $ 1.02 $ (0.07) FERC and other operating revenue 0.04 Lower O&M 0.11 EIX Parent & Other (0.11) (0.17) 0.06 Higher depreciation (0.08) Highe
Slide 9: SCE has strong capex and rate base growth driven by significant electric infrastructure investment
SCE has strong capex and rate base growth driven by significant electric infrastructure investment opportunities SCE forecasts deploying significant capital in …resulting in strong rate base growth over 2021–2023… the GRC track 1 period Capital Expenditures, $ in Billions Rate Base2, $ in Billions 7
Slide 10: Ongoing and pending cost recovery will further strengthen balance sheet and credit metrics
Ongoing and pending cost recovery will further strengthen balance sheet and credit metrics Wildfire-related and Wildfire Insurance Applications $ in Millions Approved Application Approved Amount1 Expected recovery mechanism/timing GRC Track 2 Jan. 2021 391 Securitization of O&M and AB 1054 capital
Slide 11: SCE plans to securitize ~$1.6 billion of AB 1054 capex and ~$0.5 billion of O&M
SCE plans to securitize ~$1.6 billion of AB 1054 capex and ~$0.5 billion of O&M upon CPUC approval Steps Required to Issue Securitized Recovery Bonds $ in Millions Cost Recovery Financing Order Issue App Proceeding/ AB 1054 Total File CPUC File CPUC Recovery # Category Capex1 O&M Costs2 Testimony Ap
Slide 12: 2017/2018 Wildfire/Mudslide Events Update: Less than 23% of best estimate remains
2017/2018 Wildfire/Mudslide Events Update: Less than 23% of best estimate remains SCE continues to make substantial progress resolving claims Remaining claims are primarily Remaining expected potential losses, $ in Billions with individual plaintiffs 6.2 Claims settled in most recent quarter (2Q21):
Slide 13: Our Sustainable Financing Framework underscores the link between strategy and financing
Our Sustainable Financing Framework underscores the strong link between our strategy and financing activities Green, Social, and Sustainability instruments will fund In June, EIX published its projects that provide distinct environmental or social benefits Sustainable Financing Eligible Project Cate
Slide 14: Appendix
Appendix
Slide 15: California has continued to increase investments in wildfire suppression and prevention
California has continued to increase investments in wildfire suppression and prevention1 CAL FIRE budget support Substantial increase in Budget continues along with actions to wildfire suppression budget suppression support increase staffing and to address shifting and adds focus on improve effectiv
Slide 16: On segments where SCE has installed covered conductor, there has not been a CPUC-reportable ignition
On segments where SCE has installed covered conductor, there has not been a CPUC-reportable ignition from contact with objects or wire-to-wire contact Covered conductor has Tree-caused faults in high Since inception of high fire reduced faults that could fire risk area is lower than risk inspection
Slide 17: SCE's 2021 General Rate Case will be approved in four tracks over 2021–2023
SCE’s 2021 General Rate Case will be approved in four tracks over 2021–2023 Estimated timeline for 2021 General Rate Case tracks and milestones Opening CPUC SCE Intervenor SCE & Reply Proposed Testimony Testimony Rebuttal Briefs Decision Track 1: 2021–2023 GRC Revenue Requirement Track 2:
Slide 18: Year-to-Date Earnings Summary
Year-to-Date Earnings Summary YTD YTD 2021 2020 Variance Key SCE EPS Drivers2 Higher revenue3 $ 0.16 Basic Earnings Per Share (EPS) CPUC revenue 0.08 SCE $ 1.73 $ 1.64 $ 0.09 FERC and other operating revenue 0.08 Lower O&M 0.32 EIX Parent & Other (0.21) (0.27) 0.06 Higher depreciation (0.17) Lower n
Slide 19: Earnings Non-GAAP Reconciliations
Earnings Non-GAAP Reconciliations Reconciliation of EIX GAAP Earnings to EIX Core Earnings Earnings (Losses) Attributable to Edison International, $ in Millions Q2 Q2 YTD YTD 2021 2020 2021 2020 SCE $ 359 $ 381 $ 655 $ 600 EIX Parent & Other (41) (63) (78) (99) Basic Earnings $ 318 $ 318 $ 577 $ 501
Slide 20: 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 2021 2020 2021 2020 Basic EPS $ 0.84 $ 0.85 $ 1.52 $ 1.37 Non-Core Items SCE 2017/2018 Wildfire/Mudslide Events expenses (0.02) (
Slide 21: 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