American Electric Power Company, Inc. · NASDAQ:AEP
American Electric Power — Q4 2012 Earnings Presentation
17 slides from American Electric Power's earnings presentation, Feb 15, 2013
Slide 1: 4Q12 Earnings Release Presentation
4Q12 Earnings Release Presentation February 15, 2013
Slide 2: Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995 This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and each of its Registrant Subsidiaries believe that their expectations are
Slide 3: GAAP & Operating Earnings Per Share
GAAP & Operating Earnings Per Share 4th Quarter YTD $0.80 $4.50 $4.02 $0.64 $3.75 $3.12 $0.60 $0.50 $3.09 $2.60 $0.40 GAAP EPS $3.00 GAAP EPS $0.40 $2.25 OPERATING OPERATING EPS $1.50 EPS $0.20 $0.05 $0.75 $0.00 $0.00 2012 2011 2012 2011 Refer to slides 10 & 11 for reconciliations between GAAP and O
Slide 4: 4Q12 Performance
4Q12 Performance 4Q12 Performance Drivers Fourth Quarter Reconciliation Non-Utility Operations/Parent unfavorable Operating primarily due to a $52M pre-tax charge for the Earnings early retirement of parent debt in 4Q12 and EPS ($ in millions) weather impacts on River Operations 4Q11 $ 0.40 $194 Dep
Slide 5: Full Year 2012 Performance
Full Year 2012 Performance Full Year 2012 Performance Drivers Full Year Reconciliation Ohio Customer Switching and Capacity unfavorable $170M from prior year. As of Operating December 2012, 51% of total Ohio load Earnings switched EPS ($ in millions) Depreciation/Amortization unfavorable $149M 2011
Slide 6: Normalized Load Trends
Normalized Load Trends AEP Residential Normalized GWh Sales AEP Commercial Normalized GWh Sales %Change vs.. Prior Year %Change vs.. Prior Year 5% 5% 1.6% 0.1% 0.3% 0% 0% -0.5% -1.1% -0.4% -1.6% -0.4% -1.9% -2.8% -5% -5% 1Q12 2Q12 3Q12 4Q12 YTD12 1Q12 2Q12 3Q12 4Q12 YTD12 AEP Industrial Normalized G
Slide 7: Industrial Sales Volumes
Industrial Sales Volumes Industry 4Q12 vs. 4Q11 YTD vs. PY Primary Metals -16.1% -5.9% Chemical Mfg. 2.4% -1.1% Petroleum & Coal Products 7.4% 6.9% Mining (except Oil & Gas) -12.5% -4.7% Paper Mfg. 2.7% 0.8% Industrial sales notch negative for the second consecutive quarter 7
Slide 8: Coal to Gas Switching
Coal to Gas Switching 4th Quarter 2011 vs. 2012 Capacity Factor YTD 2011 vs. 2012 Capacity Factor East West East West Overall generation from natural gas has increased over 40 percent year-to-date East combined cycle statistics include the addition of the Dresden Plant, which came on line in Februar
Slide 9: Capitalization & Liquidity
Capitalization & Liquidity Total Debt / Total Capitalization Credit Statistics Actual Target FFO Interest Coverage 4.6 >3.6x FFO To Total Debt 19.9% 15%- 20% Note: Credit statistics represent the trailing 12 months as of 12/31/2012 Liquidity Summary (12/31/2012) Liquidity Summary (unaudited) Actual
Slide 10: Reconciliation of GAAP to Operating Earnings
Reconciliation of GAAP to Operating Earnings $ millions Earnings Per Share 4th Qtr 4th Qtr 4th Qtr 4th Qtr 2011 2012 Change 2011 2012 Change Reported Earnings (GAAP) $ 308 $ 21 $ (287) $ 0.64 $ 0.05 $ (0.59) Special Items: Restructuring Program - 22 22 - 0.04 0.04 Ohio Plant Impairments - 184 184 -
Slide 11: Reconciliation of GAAP to Operating Earnings
Reconciliation of GAAP to Operating Earnings $ millions Earnings Per Share Dec YTD Dec YTD Dec YTD Dec YTD 2011 2012 Change 2011 2012 Change Reported Earnings (GAAP) $ 1,941 $ 1,259 $ (682) $ 4.02 $ 2.60 $ (1.42) Special Items: Restructuring Program - 30 30 - 0.06 0.06 Turk Plant Impairment 32 9 (23
Slide 12: Quarterly Performance Comparison
Quarterly Performance Comparison American Electric Power Financial Results for 4th Quarter 2012 Actual vs 4th Quarter 2011 Actual 2011 GAAP 2011 Operating 2012 GAAP 2012 Operating 2011 Volumes Earnings Adjustments Earnings 2012 Volumes Earnings Adjustments Earnings (GWh) ($ millions) ($ millions) ($
Slide 13: YTD Performance Comparison
YTD Performance Comparison American Electric Power Financial Results for YTD December 2012 Actual vs YTD December 2011 Actual 2011 GAAP 2011 Operating 2012 GAAP 2012 Operating 2011 Volumes Earnings Adjustments Earnings 2012 Volumes Earnings Adjustments Earnings (GWh) ($ millions) ($ millions) ($ mil
Slide 14: Retail Rate Performance
Retail Rate Performance Rate Changes, net of Rate Changes, net of trackers (in millions) trackers (in millions) 4Q12 vs. 4Q11 YTD12 vs. YTD11 East Regulated East Regulated $11 Integrated $29 Integrated Utilities Utilities Ohio Companies Ohio Companies $54 $34 (Includes POLR) (Includes POLR) West Reg
Slide 15: 4Q12 Retail Performance
4Q12 Retail Performance Retail Load* Weather Impact (weather normalized) (in millions) 4Q12 vs. 4Q11 4Q12 vs. 4Q11 East Regulated East Regulated (1.1%) Integrated $18 Integrated Utilities Utilities Ohio Companies (5.9%) Ohio Companies $8 West Regulated West Regulated (1.3%) Integrated ($1) Integrate
Slide 16: YTD 2012 Retail Performance
YTD 2012 Retail Performance Retail Load* Weather Impact (weather normalized) (in millions) YTD12 vs. YTD11 YTD12 vs. YTD11 East Regulated East Regulated (0.9%) Integrated ($36) Integrated Utilities Utilities Ohio Companies (3.0%) Ohio Companies ($7) West Regulated West Regulated 0.5% Integrated ($35
Slide 17: Off System Sales Gross Margin Detail
Off System Sales Gross Margin Detail Fourth Quarter Physical off-system sales margins 2011 2012 increased from last year by $26M ($millions) ($millions) OSS Physical Sales $ 24 $ 50 AEP/Dayton Hub pricing: 4% CRES Capacity Payments $ 17 $ 3 decrease in liquidation prices Marketing/Trading $ 14 $ 9 P
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