Slide 1: Transforming For Our Future: Fourth Quarter 2021 Earnings
Transforming For Our Future Fourth Quarter 2021 Earnings Feb. 18, 2022
Slide 2: Cautionary Statements
Cautionary Statements Use of Non-GAAP Financial Measures In this presentation, Ameren has presented weather-normalized and core earnings per share, which are non-GAAP financial measures and may not be comparable to those of other companies. A reconciliation of GAAP to non-GAAP information is include
Slide 3: Business Overview
Business Overview Warner Baxter Executive Chairman, Ameren Corp.
Slide 4: Successfully Executed Our Strategic Plan in 2021
Successfully Executed Our Strategic Plan in 2021 • Delivered strong weather-normalized earnings1 growth in 2021 – Significant investments in energy infrastructure for the benefit of customers and Weather-Normalized Diluted EPS communities we serve Diluted EPS1 – Disciplined cost management 7.9% • St
Slide 5: Delivering Strong Value to our Customers
Delivering Strong Value to our Customers Achieving top quartile performance in reliability, affordability and customer satisfaction Increased Customer Outage Improved Reliability1 Affordable Rates2 Frequency Satisfaction3 JD Power (per customer per year) +12% ¢/KWh Score +23% 1.00 Better 15 Better 7
Slide 6: Strong Track Record of EPS and Dividend Growth
Strong Track Record of EPS and Dividend Growth Weather-Normalized Core Dividends Paid per Share3 Total Shareholder Earnings per Diluted Share1 and Payout as a % of WN EPS Return $4.25 +84% or $2.40 ~+38% 2013 to 2021 $4.00 $2.36 | 58% ~8% CAGR $4.05 2013 to 2021 $3.75 $2.20 220% 2013 to 2021 $3.82 2
Slide 7: Our Sustainability Value Proposition
Our Sustainability Value Proposition ENVIRONMENTAL STEWARDSHIP SOCIAL IMPACT • Accelerating transition to a cleaner and more diverse portfolio1 • Delivering value to customers in 2021 while focused on safety ‒ Target carbon reductions from 2005 levels: 50% by 2030; 85% by 2040; net- ‒ Improved relia
Slide 8: Strategic and Business Update
Strategic and Business Update Marty Lyons President and Chief Executive Officer, Ameren Corp. Ameren Missouri’s 400 MW High Prairie Renewable Energy Center in service Dec. 2020
Slide 9: Expect to Deliver Strong Long-Term EPS and Dividend Growth
Expect to Deliver Strong Long-Term EPS and Dividend Growth • Expect 2022 EPS in a range of $3.95 to $4.15 – Midpoint represents 8% EPS growth compared to 2021 original midpoint of $3.75 Long-Term EPS Growth and 2022E EPS Guidance • Remain on track to deliver strong long-term earnings growth – Expect
Slide 10: Executing Our Strategy in 2022 and Beyond
Executing Our Strategy in 2022 and Beyond Investing in and operating our utilities in a manner consistent with existing regulatory frameworks • Constructive frameworks for investment in all business segments 2021-2026E Regulated Five-Year Rate • Expect ~7% rate base CAGR from 2021-2026 Infrastructur
Slide 11: Investing in the Energy Grid
Investing in the Energy Grid • Investing to modernize energy grid, making it cleaner, safer, more reliable, resilient and secure – Expect greater transmission investments to support additional renewable generation 2021-2026E Regulated – Provide customers with new and improved tools to manage energy
Slide 12: Robust Investment Opportunities Across All Businesses Over Next Decade
Robust Investment Opportunities Across All Businesses Over Next Decade Modernizing the grid and investing in cleaner generation Investment Plan 2022-2026 $45B+ ($ billions) Strong Pipeline of Regulated $17.3 Infrastructure Investments $3.5 2022-2031 $1.8 Additional Investment $3.1 Opportunities • Mo
Slide 13: MISO Long-Range Transmission Planning Roadmap
MISO Long-Range Transmission Planning Roadmap Creating and capitalizing on opportunities for investment for the benefit of our customers, shareholders and the environment Ameren Transmission • In Apr. 2021, MISO issued report outlining preliminary long- range transmission planning roadmap through 20
Slide 14: Rush Island Energy Center
Rush Island Energy Center Ameren Missouri • In Aug. 2021, U.S. Court of Appeals affirmed the U.S. District Court’s Sep. 2019 order to install a flue gas desulfurization system at the Rush Island Energy Center – Reversed the District Court’s order to install a dry sorbent injection system at the Laba
Slide 15: Energy Legislation
Energy Legislation Enhancing regulatory frameworks and advocating for responsible energy and economic policies Ameren Illinois Electric Distribution • Illinois Energy Transition Legislation (SB 2408) enacted in 2021 – Allows for electric utility to opt-in to four-year plan (Multi-Year Rate Plan) for
Slide 16: Focused on Delivering Affordable Service to Our Customers
Focused on Delivering Affordable Service to Our Customers Residential rates since key legislative or regulatory enhancements Ameren Missouri Ameren Illinois Ameren Illinois Electric1 Electric Distribution2 Natural Gas Distribution3 ¢/KWh ~0.75% ¢/KWh ~0.3% $/therm ~1.4% CAGR CAGR CAGR 12.00 2017 to
Slide 17: Focused on Disciplined Cost Management to Keep Customer Rates Affordable
Focused on Disciplined Cost Management to Keep Customer Rates Affordable • Track record of disciplined cost management Ameren Total Fuel & Purchased Power and – Total fuel & purchased power and operations and maintenance Operations and Maintenance Expenses expenses decreased ~3% from 2016 levels ($
Slide 18: Our Value Proposition for Customers, Shareholders and the Environment
Our Value Proposition for Customers, Shareholders and the Environment Attractive dividend Strong long-term and long-term dividend growth Attractive total growth outlook outlook return potential • Expect 6% to 8% EPS CAGR 2022-20261 • Annualized equivalent dividend rate of • Track record of deliverin
Slide 19: Ameren Missouri Leadership Update
Ameren Missouri Leadership Update Effective Jan. 1, 2022 • Mark Birk, previously Ameren Missouri’s Senior Vice President, Customer and Power Operations, is now Chairman and President of Ameren Missouri • Consistent with robust succession planning process • 35-year veteran of Ameren with experience i
Slide 20: Financial Update
Financial Update Michael Moehn Executive Vice President and Chief Financial Officer, Ameren Corp.
Slide 21: 2021 Earnings Analysis
2021 Earnings Analysis Key Earnings Variance Drivers1 ↑ Ameren Missouri earnings — Increased investments in infrastructure and wind generation eligible for PISA and RESRAM: +$0.21 Diluted EPS1 — Higher electric retail sales: ~+$0.16 2020 vs. 2021 • Weather vs. 2020: ~+$0.06; vs. normal ~+$0.02 • WN
Slide 22: Strong Rate Base Growth in All Regulatory Jurisdictions
Strong Rate Base Growth in All Regulatory Jurisdictions Robust five-year infrastructure investment plan in all segments $17.3 Billion of Regulated Infrastructure Investment 2021 to 2026E Regulated Five-Year Rate 2022-2026 Infrastructure Rate Base1 Base CAGR Ameren Illinois ($ billions) Ameren Illino
Slide 23: Expected 2022-2026 Funding Plan
Expected 2022-2026 Funding Plan • Cash from Operations – Return of capital through depreciation in rates – Return on equity-financed portion of rate base – ~$1.6 to $1.7 billion of income tax deferrals and tax asset utilization • Income tax deferrals driven primarily by capital expenditures • Includ
Slide 24: 2022 Earnings Guidance: Key Drivers and Assumptions
2022 Earnings Guidance: Key Drivers and Assumptions Midpoint represents 8% EPS growth compared to 2021 original midpoint of $3.75 ↑ New electric service rates effective Feb. 28, 2022 — Reflecting new infrastructure and wind generation investments ↑ Higher investments in infrastructure and wind gener
Slide 25: 2022 Earnings Guidance: Key Drivers and Assumptions
2022 Earnings Guidance: Key Drivers and Assumptions Midpoint represents 8% EPS growth compared to 2021 original midpoint of $3.75 ↑ Higher estimated year-end rate base reflecting infrastructure investments: Ameren Illinois ~$4.2 billion compared to ~$3.9 billion in 2021 Electric ↑ Allowed ROE of 8.0
Slide 26: Select Regulatory Items
Select Regulatory Items Ameren Missouri Electric Rate Review • In Dec. 2021, MoPSC approved $220 million annual revenue increase1 – Allowed ROE not specified – Common equity ratio: 51.97%2 – Rate base: $10.2 billion3 – Continuation of previously authorized FAC and regulatory tracking mechanisms – Lo
Slide 27: Summary
Summary Expect to deliver strong earnings growth in 2022 with guidance in a range of $3.95 to $4.15 per diluted share Successfully executing our strategy; well-positioned for future growth • Focused on delivering a cleaner and sustainable energy future in a responsible manner Strong long-term growth
Slide 28: Appendix
APPENDIX
Slide 29: 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 30: Focus on Sustainability Initiatives in 2021
Focus on Sustainability Initiatives in 2021 • Environmental – Acquired 300 MW Atchison Renewable Energy Center – Founding member of the National Electric Highway Coalition, a group of over 50 utilities pledged to support the development of an EV fast charging network along major transportation corri
Slide 31: Our Focus on Delivering a Cleaner Energy Future Responsibly
Our Focus on Delivering a Cleaner Energy Future Responsibly1 While providing safe, reliable and affordable energy to customers • Climate risk management and mitigation – Targeting significant reductions in greenhouse gases – Implementing robust customer energy efficiency programs – Investing to mode
Slide 32: Ameren Missouri Generation Transformation
Ameren Missouri Generation Transformation1 Transition to a cleaner and more diverse portfolio in a responsible fashion 2 50% CARBON EMISSIONS 85% CARBON EMISSIONS NET-ZERO CARBON REDUCTION3 REDUCTION3 EMISSIONS3 • Ameren Missouri filed its preferred Integrated Resource Plan with the MoPSC in Sep. 20
Slide 33: Missouri Renewable Energy Investments
Missouri Renewable Energy Investments Creating and capitalizing on opportunities for investment for the benefit of our customers, shareholders and the environment 400 MW High Prairie Renewable Energy 300 MW Atchison Renewable Energy Center located in northeast Missouri Center located in northwest Mi
Slide 34: 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 facilities for MO available to MO residential non-residential customer Neighborhood Community and small business parking lots, open lan
Slide 35: Ameren Missouri Smart Energy Plan filed with MoPSC
Ameren Missouri Smart Energy Plan filed with MoPSC on Feb. 18 Investing in a manner consistent with existing regulatory frameworks • $1.5 billion invested in 20211 to improve reliability and provide clean energy to the customers and communities we serve – Smart switches to reroute power until a line
Slide 36: FERC Regulatory Matters
FERC Regulatory Matters Enhancing regulatory frameworks and advocating for responsible energy and economic policies 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 all
Slide 37: Ameren Organizational Structure and External Debt Balances
Ameren Organizational Structure and External Debt Balances1 $ in millions as of Dec. 31, 2021 All Moody’s and S&P outlooks “Stable” Ameren Corporation (Baa1/BBB+) Sr. Unsecured (Baa1/BBB) - $2,550 Commercial Paper (P-2/A-2) - $277 Ameren Missouri Ameren Illinois ATXI (Baa1/BBB+) (A3/BBB+) (A2/-) Sr.
Slide 38: 2022 Capital Expenditures
2022 Capital Expenditures 2022E Capital Expenditures $3,375M Ameren Illinois Ameren Illinois Natural Gas Electric Distribution $370M $580M 11% Ameren 17% Transmission $735M 22% $1,690M 50% Ameren Missouri 2021 Results and Guidance | Feb. 18, 2022 38
Slide 39: Illinois Energy Transition Legislation
Illinois Energy Transition Legislation Current Performance- Traditional Framework Multi-Year Plan Based Rates (Future Test Year) (IETL) 5.80% + average of 30-year ROE treasury rate each calendar year ICC determined ICC determined Potential for regulatory lag in non- Earned vs. Allowed Allowed test y
Slide 40: Solid ESG Ratings
Solid ESG Ratings A AAA 0 Dec. 2021 Dec. 2021 May 2021 A- Water 29.1 A Medium Risk Climate B Range: A-F Range: Range: (A is best) AAA-CCC 0-100 (AAA is best) (Lower is better) F CCC 100 2021 Results and Guidance | Feb. 18, 2022 40
Slide 41: Ameren's Estimated Coal-Related Revenues in 2021
Ameren’s Estimated Coal-Related Revenues in 2021 Return on Investment Revenues Cost Recovery3 Revenues $2.1B1 x $2.1B1 x ($103M $423M + 52% x 48% x x 25%) / $161M x $147M + 9.53%2 = 4.5% = (1 - 25%) 26%1 = $154M = $103M $45M $34M $42M $724M $6,394M 15% Return on Interest Tax Expense Property Fuel, o
Slide 42: GAAP to Core Earnings Per Share Reconciliations
GAAP to Core Earnings Per Share Reconciliations Year Ended Dec. 31, 2013 2014 2015 2016 2017 2018 2019 2020 2021 GAAP Earnings / Diluted EPS $1.18 $2.40 $2.59 $2.68 $2.14 $3.32 $3.35 $3.50 $3.84 Exclude results from discontinued operations 0.87 — (0.01) — — — — — — Less: Income tax benefit / expense
Slide 43: Weather-Normalized Earnings per Share Reconciliations
Weather-Normalized Earnings per Share Reconciliations Year Ended Dec. 31, 2013 2014 2015 2016 2017 2018 2019 2020 2021 Core1 Diluted EPS $2.10 $2.40 $2.56 $2.68 $2.83 $3.37 $3.35 $3.50 $3.84 Ameren Missouri weather impact included in margins 0.03 0.05 (0.04) 0.16 (0.07) 0.43 0.04 (0.05) 0.02 Less: I
Slide 44: Investor Relations Calendar
Investor Relations Calendar MARCH 2022 APRIL 2022 SUN. MON. TUES. WED. THUR. FRI. SAT. SUN. MON. TUES. WED. THUR. FRI. SAT. 1 2 3 4 5 1 2 Morgan BofA Stanley Conf. Conf. 6 7 8 9 10 11 12 3 4 5 6 7 8 9 13 14 15 16 17 18 19 10 11 12 13 14 15 16 Q1 Quiet Period begins 20 21 22 23 24 25 26 17 18 19 20 2
Slide 45: Select Regulatory and Legislative Matters
Select Regulatory and Legislative Matters Missouri Public Service Commission • Order approving electric rate review filling: Docket No. ER-2021-0240 • Order approving natural gas rate review filing: Docket No. GR-2021-0241 • Smart Energy Plan filing: Docket No. EO-2019-0044 • 2020 Integrated Resourc
Slide 46: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations AFUDC – Allowance for funds used during construction IRP – Integrated resource plan ATXI – Ameren Transmission Company of Illinois ISRS – Infrastructure System Replacement Surcharge B – Billion M – Million bps – Basis points MEEIA – Missouri Energy Efficiency Inve