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
July 29, 2021 Second Quarter 2021 Financial Results
Slide 2: Forward-looking statements
1 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 statements. These forward-looki
Slide 3: 2021 GRC track 1: CPUC's proposed decision supports critical investments
2 2021 GRC track 1: CPUC’s proposed decision supports critical investments and provides foundation through 2023 July 29, 2021 PD would support rate base growth of ~6% over GRC track 1 period2 Total company rate base2, $ in Billions 35.7 38.0 40.0 2021 2022 2023 Capex under PD-authorized levels would
Slide 4: SCE's opening comments focus on covered conductor program scope and other issues
3 SCE’s opening comments focus on addressing covered conductor program scope and other critical issues July 29, 2021 SCE’s opening comments will note several areas that, if corrected, would result in a balanced final decision PD’s cuts to wildfire covered conductor program are inappropriate Proposes
Slide 5: SCE's execution of its wildfire mitigation strategy is reducing wildfire risk
4 SCE’s execution of its wildfire mitigation strategy is reducing risk of wildfires associated with utility infrastructure July 29, 2021 Note: Data as of June 30, 2021. Blue check marks indicate met or exceeded target. Green arrows indicate execution is on track. Community Resource Centers Community
Slide 6: SCE is making meaningful progress in mitigating wildfire risk
5 SCE is making meaningful progress in mitigating wildfire risk for its customers July 29, 2021 Covered conductor has reduced faults, which could lead to ignitions High fire risk inspection program has reduced remediation needs Expanded vegetation management and tree removal has reduced line contact
Slide 7: Sustainability is central to Edison's vision
6 Sustainability is central to Edison’s vision to lead the transformation of the electric power industry Social Environmental Governance Targeting 100% carbon-free power delivered by 2045; ~43% carbon-free power in 20201 Over $800 million in approved SCE funding to expand transportation electrificat
Slide 8: Second Quarter Earnings Summary
7 Second Quarter Earnings Summary July 29, 2021 1. See Earnings Non-GAAP Reconciliation and Use of Non-GAAP Financial Measures in Appendix 2. For comparability, 2021 core drivers reported based on 2020 weighted-average share count of 375 million (2021 QTD weighted-average shares outstanding is 379.6
Slide 9: SCE has strong capex and rate base growth
8 36.3 39.0 41.6 2021 2022 2023 5.5 5.5 5.3 5.4 2020 2021 2022 2023 SCE has strong capex and rate base growth driven by significant electric infrastructure investment opportunities 1. In accordance with Assembly Bill (AB) 1054, ~$1.6 billion of wildfire mitigation-related spend shall not earn an equ
Slide 10: Ongoing and pending cost recovery will further strengthen balance sheet and credit metrics
9 Ongoing and pending cost recovery will further strengthen balance sheet and credit metrics Approved Application Approved Amount1 Expected recovery mechanism/timing ✓ GRC Track 2 Jan. 2021 391 Securitization of O&M and AB 1054 capital2 ✓ WEMA1 Sept. 2020 505 Currently in rates. Complete by Oct. 202
Slide 11: SCE plans to securitize ~$1.6 billion of AB 1054 capex and ~$0.5 billion of O&M
10 SCE plans to securitize ~$1.6 billion of AB 1054 capex and ~$0.5 billion of O&M upon CPUC approval July 29, 2021 O&M Total Costs2 Cost Recovery Financing Order Issue Recovery Bonds App # Proceeding/ Category AB 1054 Capex1 File Testimony CPUC Approval File Testimony CPUC Approval 1 GS&RP 327 – 32
Slide 12: 2017/2018 Wildfire/Mudslide Events Update: Less than 23% of best estimate remains
11 2017/2018 Wildfire/Mudslide Events Update: Less than 23% of best estimate remains July 29, 2021 SCE continues to make substantial progress resolving claims Remaining expected potential losses, $ in Billions 6.2 1.4 Best Estimate of Total Losses Remaining Expected Potential Losses (At 6/30/2021) L
Slide 13: Our Sustainable Financing Framework
12 Our Sustainable Financing Framework underscores the strong link between our strategy and financing activities July 29, 2021 Primary Category1 U.N. Sustainable Development Goals Alignment Green Renewable Energy Clean Transportation Energy Efficiency & Carbon Reduction Climate Change Adaptation Soc
Slide 14: Appendix
Appendix ee FY EDON.
Slide 15: California has continued to increase investments in wildfire suppression and prevention
14 California has continued to increase investments in wildfire suppression and prevention1 July 29, 2021 CAL FIRE budget support along with actions to increase staffing and improve effectiveness ~$2.5–2.8bn/year ~7,180–8,134 Increases to firefighting crews Helicopter replacements continue Air tanke
Slide 16: Covered conductor segments have had no CPUC-reportable ignitions from contact
15 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 July 29, 2021 Covered conductor has reduced faults that could lead to ignitions1 Faults per 100 circuit miles on HFRA Circuits in 2021 Since incep
Slide 17: SCE's 2021 General Rate Case will be approved in four tracks over 2021–2023
16 SCE’s 2021 General Rate Case will be approved in four tracks over 2021–2023 SCE Testimony Intervenor Testimony SCE Rebuttal Opening & Reply Briefs CPUC Proposed Decision Track 1: 2021–2023 GRC Revenue Requirement ✓ ✓ ✓ ✓ ✓ Track 2: 2018–2019 FMA Update1 ✓ ✓ ✓ N/A due to settlement ✓ (Approved) Tr
Slide 18: Year-to-Date Earnings Summary
17 Year-to-Date Earnings Summary July 29, 2021 1. See Earnings Non-GAAP Reconciliations and Use of Non-GAAP Financial Measures in Appendix 2. For comparability, 2021 core drivers reported based on 2020 weighted-average share count of 366.8 million (2020 YTD weighted-average shares outstanding is 379
Slide 19: Earnings Non-GAAP Reconciliations
18 Earnings Non-GAAP Reconciliations July 29, 2021 Reconciliation of EIX GAAP Earnings to EIX Core Earnings Earnings (Losses) Attributable to Edison International, $ in Millions Q2 2021 Q2 2020 YTD 2021 YTD 2020 SCE 359 $ 381 $ 655 $ 600 $ EIX Parent & Other (41) (63) (78) (99) Basic Earnings 318 $
Slide 20: EIX Core EPS Non-GAAP Reconciliations
19 EIX Core EPS Non-GAAP Reconciliations July 29, 2021 1. 2021 EPS drivers are reported based on weighted-average share counts of 379.6 million and 379.4 million for QTD and YTD, respectively; 2020 EPS drivers are based on weighted-average share counts of 375 million and 366.8 million for QTD and YT
Slide 21: Use of Non-GAAP Financial Measures
20 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 also used when communicating wit