Ameren Corporation · NYSE:AEE
Ameren — UBS and Morgan Stanley Utilities Conferences 2017
27 slides from Ameren's conference presentation, Mar 1, 2017
Slide 1: Lead Today. Transform Tomorrow.
Lead Today. Transform Tomorrow. UBS and Morgan Stanley Utilities Conferences March 1-2, 2017 | New York and Boston Investor Meetings | September 2016
Slide 2: Cautionary Statements
Cautionary Statements Use of Non-GAAP Financial Measures In this presentation, Ameren has presented core earnings and free cash flow, which are non-GAAP measures and may not be comparable to those of other companies. A reconciliation of GAAP to non-GAAP earnings is included either on the slide where
Slide 3: Company Description and Ameren Segments
Company Description Ameren Segments 2.4M electric Ameren – Ameren Corporation and its subsidiaries on a Fully rate-regulated customers consolidated basis. electric and gas utility Ameren Missouri – a reportable segment consisting of the rate-regulated electric generation, transmission and distributi
Slide 4: Our Value Proposition to Investors and Customers
Our Value Proposition to Investors and Customers Strong Attractive long-term growth Attractive total return outlook dividend potential • Continue to expect 5% to 8% • Annualized equivalent dividend • Attractive earnings growth compound annual EPS growth rate of $1.76 per share provides outlook and y
Slide 5: Our Strategic Plan
Our Strategic Plan • Investing in and operating our utilities in a manner consistent with existing regulatory frameworks • Creating and capitalizing on opportunities for investment for the benefit of our customers and shareholders • Enhancing regulatory frameworks and advocating for responsible ener
Slide 6: Solid Operating Performance
Solid Operating Performance Electric rates Safety Delivery system reliability Generating plant are low has improved has improved performance remains solid Average Residential Safety Distribution System Baseload Energy Electricity Prices1 Performance Reliability2 Center Performance Recordable Lost Wo
Slide 7: Our Regulatory Frameworks
Our Regulatory Frameworks FERC-regulated: Formula ratemaking; nearly eliminates regulatory lag • Allowed ROE is 10.82%, which includes the MISO participation adder of 50 basis points Ameren • Rates reset each Jan. 1 based on forward-looking calculation with annual reconciliation Transmission • Const
Slide 8: Investing Strategically, Consistent with Regulatory Frameworks
Investing Strategically, Consistent with Regulatory Frameworks $10.8 Billion of Regulated 2016 to 2021E Regulated 5-Yr Rate Infrastructure Investment1,2 Base CAGR Infrastructure Rate Base1,3 2017-2021 ($ Billions) Ameren Illinois % of Natural Gas +6% Total 6% $17.9 CAGR $1.4B, Ameren $3.8 Ameren Ill
Slide 9: Investing Strategically, with Focus on Transmission and Distribution
Investing Strategically, with Focus on Transmission and Distribution 2016 to 2021E Regulated • Expect energy grid will be increasingly important and valuable to a Infrastructure Rate Base1 more sustainable future for our customers, the communities we serve and our shareholders 100% ─ Investing to mo
Slide 10: 2017-2021 Capital Expenditure Funding Plan
2017-2021 Capital Expenditure Funding Plan1 • Return of capital through depreciation in rates • Return on equity-financed portion of rate base • Income tax deferrals and tax assets of ~$1.9-$2.0 billion ─ Income tax deferrals driven primarily by capital expenditures ─ Includes ~$700 million of tax a
Slide 11: Missouri Electric Rate Review
Missouri Electric Rate Review Unanimous Stipulation and Agreement filed with MoPSC on Feb. 23 • Agreement, which is subject to MoPSC approval, resolves all issues in case • Increases annual base electric revenue requirement by $92 million ─ Removes negative effect of lower sales to New Madrid smelte
Slide 12: Missouri Regulatory Update
Missouri Regulatory Update • Proposed Missouri Legislation: The Missouri Economic Development and Infrastructure Investment Act (SB 190)1 approved by Senate Commerce Committee ─ Deferral between rate cases of depreciation on capital projects placed in-service and of return on incremental rate base •
Slide 13: Federal Income Tax Reform
Federal Income Tax Reform1 • Tax reform proposals not fully developed but several pillars have been discussed Ameren’s current assessment of potential Ameren well-positioned to maintain strong growth outlook: customer rate, earnings and cash flow implications – Lower tax rate benefits customer rates
Slide 14: Our Value Proposition to Investors and Customers
Our Value Proposition to Investors and Customers Strong Attractive long-term growth Attractive total return outlook dividend potential • Continue to expect 5% to 8% • Annualized equivalent dividend • Attractive earnings growth compound annual EPS growth rate of $1.76 per share provides outlook and y
Slide 15: Financial Update
Financial Update | UBS and Morgan Stanley Utilities Conferences | March 1-2, 2017
Slide 16: GAAP to Core Earnings Reconciliation
GAAP to Core Earnings Reconciliation (In millions, except per share amounts) 2015 2016 GAAP Earnings / Diluted EPS $ 630 $ 2.59 $ 653 $ 2.68 Results from discontinued operations Operating income before income tax (1) (0.01) — — Income tax benefit (50) (0.20) — — Income from discontinued operations,
Slide 17: 2016 Earnings Analysis
2016 Earnings Analysis Core1 Diluted EPS 2015 vs. 2016 Key Core1 Earnings Variance Drivers: Higher Ameren Transmission earnings ─ Increased investments in infrastructure made under modern, constructive regulatory $2.56 $2.68 framework and higher allowed ROE: $0.19 $0.34 $0.48 Higher Ameren Illinois
Slide 18: 2017 Earnings Guidance: Key Drivers and Assumptions
2017 Earnings Guidance: Key Drivers and Assumptions1 Regulated by MoPSC Increased electric service rates consistent with stipulation and agreement ─ Reflects infrastructure investments in service at Dec. 31, 2016, as well as more recent sales and cost levels Ameren ─ Removes negative effect of lower
Slide 19: 2017 Earnings Guidance: Key Drivers and Assumptions, cont'd
2017 Earnings Guidance: Key Drivers and Assumptions, cont’d1 Regulated by ICC Higher weather-normalized electric delivery earnings reflecting infrastructure Ameren Illinois investments made under formula ratemaking ─ Year-end estimated rate base: ~$2.82 billion compared to $2.6 billion in 2016 Elect
Slide 20: 2017 Cash Flow Guidance
2017 Cash Flow Guidance1 2017 Capital Expenditures 2017 ($ Millions) ($ millions) Guidance $2,220 Net cash provided by operating activities $ 1,990 $325 Capital expenditures (2,220) $375 65% Other cash used in investing activities (35) $255 Dividends: common and preferred2 (435) $480 Free cash flow
Slide 21: Appendix
Appendix | UBS and Morgan Stanley Utilities Conferences | March 1-2, 2017
Slide 22: Significant FERC-Regulated Transmission Investment Update
Significant FERC-Regulated Transmission Update Transmission Investment Regional Multi-Value Projects • Planned $2.8 billion investment – 2017-20211 ─ $0.6 billion of regional multi-value projects at ATXI ─ $2.2 billion of local reliability and connecting portions of regional multi-value projects at
Slide 23: FERC MISO Complaint Cases
FERC MISO Complaint Cases Regarding MISO base ROE • Cases sought to reduce Ameren Illinois’ and ATXI’s transmission service allowed base ROE ─ In first case, FERC final order issued Sept. 28, 2016 confirmed ALJ initial recommendation of a 10.32% base ROE • Maximum ROE including incentives not to exc
Slide 24: Illinois Energy Legislation
Illinois Energy Legislation • Future Energy Jobs Act (Senate Bill 2814) enacted in Dec. 2016; effective June 2017 • Enhances and extends Ameren Illinois’ Electric Distribution regulatory framework ─ Extends constructive formula ratemaking through 2022 • Enables continuation of Ameren Illinois’ stron
Slide 25: Select Regulatory and Legislative Matters
Select Regulatory and Legislative Matters Missouri General Assembly / Missouri Public Service Commission • Senate Bills 190, 214 and 215: http://www.senate.mo.gov/17info/BTS_Web/BillList.aspx?SessionType=R • House Bill 628: http://www.house.mo.gov/billlist.aspx • 2016 electric rate review: Docket No
Slide 26: Investor Relations Calendar
Investor Relations Calendar MARCH 2017 APRIL 2017 MON. TUES. WED. THUR. FRI. SAT. SUN. MON. TUES. WED. THUR. FRI. SAT. 1 2 3 4 1 Morgan UBS Stanley Conf. Conf. 5 6 7 8 9 10 11 2 3 4 5 6 7 8 12 13 14 15 16 17 18 9 10 11 12 13 14 15 Barclays Q1 Quiet Chicago Period Conf. 19 20 21 22 23 24 25 16 17 18
Slide 27: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations ALJ – Administrative Law Judge MWh – Megawatthour ATXI – Ameren Transmission Company of Illinois New Madrid smelter – New Madrid, Missouri aluminum smelter, (formerly owned by Noranda Aluminum, Inc.) B – Billion NOL – Net Operating Loss CAGR – Compound annual grow
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