Edison International · NYSE:EIX
Edison International — Q4 2011 Earnings Presentation
42 slides from Edison International's earnings presentation, Feb 29, 2012
Slide 1: Fourth Quarter 2011 Financial Teleconference
Exhibit 99.2 ExhibitQuarter Leading Fourth February EDISON 99.2 the 29, INTERNATIONAL® Way 2012 2011 in Electricity Financial Teleconference SM
Slide 2: Forward-Looking Statements
Leading Forward-Looking Statements historical, current circumstances. reports in February this presentation. filed expectations. the 29, are contained Way with 2012 forward-looking Important in the Statements 1Electricity EDISON These Securities in this factors forward-looking presentation INTERNATI
Slide 3: Fourth Quarter Earnings Summary
Leading Fourth Non-Core SCE EMG EIX Total Core $243 $190 Q4 GAAP ($ $166 1$(839) quarters February See millions) 10 parent $0.56 $— EPS1 EPS Earnings $0.75 $0.58 $0.51 Non-Core Earnings 0.10 (0.07) Q4 $(2.57) Quarter Earnings ended the $— 29, $0.58 11 Items (0.03) $0.76 company Way (3.26) 2012 Varia
Slide 4: SCE Fourth Quarter EPS
Leading SCE EPS Core1 Non-Core Basic Key Higher Rate Operating Lower Income Deferred 21•Recent February Tehachapi Proposed SONGS $0.03 SeeCore Fourth Q4 base Fourth Use EPS1 $0.56 expenses Developments operating per tax 10 the quarter income 29, growth Earnings Unit revenue Items of decision share Q
Slide 5: EMG Fourth Quarter EPS
Leading EMG EPS Core1 Non-Core Basic Key Merchant Midwest Total 321•Recent February Year EPA CSAPR New Capistrano SeeCore Includes Q4 $(0.13) Use EPS1 Fourth MATS end $0.10 multi-year Developments 10 the Generation 29, rule coal3 Earnings Items2 of asset impairments per Q4 $0.03 Way wind $(0.03) Non
Slide 6: Fourth Quarter Non-Core Items
Leading Fourth EPS material at discontinued Generation down Impairment and costs pipeline-related Write-down aircraft result Gain EMG EIX Deferred Non-Core February December charges parent Description on and of by Non-Core Quarter leases sale control the lessee the tax 29, declining Total company fa
Slide 7: Full-Year Earnings Summary
Leading Full-Year Non-Core SCE EMG EIX and Total Basic Diluted Core $1,140 $1,048 GAAP ($ $1,256 $(37) 12010 year February See millions) other parent ended $3.01 $0.18 EPS1 EPS Earnings 2011 Non-Core $(0.11) Earnings EPS 0.59 0.10 Earnings $3.48 $3.22 $3.84 EPS the 29, Earnings $3.48 Items Variance
Slide 8: SCE Full-Year EPS
Leading SCE EPS Core1 Non-Core Basic Key Rate Operating Lower Higher Income Change Deferred Other 21Total SeeCore 2010 base Full-Year $0.32 Use EPS1 (0.06) $3.01 expenses 3February Fourth operating depreciation net tax of Global the income growth Earnings 2011 revenue Items2 of tax financing and $3.
Slide 9: EMG Full-Year EPS
Leading EMG EPS Core1 Non-Core Basic Key Merchant Midwest Homer EMMT—trading Renewable Higher Lower 321Total February SeeCore Includes 2010 $(0.66) Use EPS1 Full-Year $0.59 income City net the Generation 29, coal3 Earnings 2011 Items2 of impairments per interest energy $0.69 Way (0.20) $(0.07) Non-G
Slide 10: SCE Rate Base and Earnings
Leading SCE ($ $18.8 Rate $16.8 2006 $11.4 $12.5 $13.1 1$15.0 Earnings2 $3.33 $3.01 $2.68 $2.25 $2.07 $1.89 2Core in February Recorded See Appendix. billions) Year-End Base1 Earnings2 2007 SCE 2006 the 29, 2008 Core –11% rate Way 2012 2011 Rate 12% base, EPS 2009 in0CAGR Electricity Base EDISON Non-
Slide 11: SCE Capital Expenditures Forecast
Leading SCE ($ 2011 $3.8 $4.4 $5.0 $$3.9 Solar Edison Generation Transmission Distribution 2By % Other FERC Forecast Total Range1 1Capital related February 012 %billions) Currently Classification Proceeding Capital 2012 CPUC 13.2 100 Photovoltaic CPUC Cases to SmartConnect™ expenditures $4.4 the $5.
Slide 12: SCE Rate Base Forecast
Leading SCE ($ Rate 2014 $22.8 $24.7 2013 $21.2 $22.6 2012 $19.9 $20.8 1capital (3) 2forecast February Forecast Forecasted billions) consolidation Base base Rate – deployment, 2014 range the 29, forecast1 Base 7-9% range Way CAGR2 Rate 2012 reflects Forecast isin ofBase 11 weighted-average based Ele
Slide 13: EMG Hedge Status
Leading EMG December Change From 2012 Midwest Homer Total Average 21Coal 43 under Q3 GWh From Hedge City FebruaryChange The during Illinois the price 2013 Generation 31, contract (NI, (West From Way above Program ($/MWh)1 ($/MWh)1,4 2011 Q3 Includes summer AEP/Dayton, designated The 29, Hub Change i
Slide 14: EMG Capital Expenditures and Commitments
2February Leading EMG December ($ 20111 Midwest Walnut Renewable Capital Turbine Other Subtotal Homer Environmental Plant Total 43 millions) $675 capital Capital capital 2012 City Creek &commitments Projected million, the $660 Generation construction 31, $421 Energy 2013 TotalWay expenditures expend
Slide 15: Refocused Wind Strategy
Leading Refocused Other Capistrano $242 2012 for corporation). Taloga, Buffalo development: (19 Operating Texas Pinnacle, (55 Wyoming $110 Projects in January and Wind Transaction (for 1,406 EMG 575 continue 387 Reduced 188 approximately (150 New reduction 2with 1February Includes EDISON 2012 three
Slide 16: Liquidity at December 31, 2011
Leading Liquidity December ($ & Sources Credit Cash Available 2011 $388 $167 Recognized EME Edison EMG February restrictions. Capital millions) EMG million &credit EME recognized received not had Facility Capital short-term SCE the 29, Profile expected Liquidity parent corporate 31, liquidity Edison
Slide 17: Southern California Edison Assumptions
Leading 2012 Southern Average Approved AFUDC FERC Transition Delayed Reduced Edison Modest Return No Due February energy capital change toOperating ROE pending to Mission International dividend the rate environmental offsets dispatch operations development 29, California historical capital Homer com
Slide 18: Appendix
Leading the February Appendix 29,Way 2012in17 Electricity EDISONSM INTERNATIONAL®
Slide 19: Updates Since Last Presentation
Leading Updates Q4 2012 Financing SCE EMG February 11Transmission Capital Rate 2012 Operating Wind Capital 2006 results the Since 29, Base Strategies CPUC Illinois Strategy Way Expenditures 2012 and Expenditures Our Forecast Assumptions in General standard 18 Program Last CPS Electricity (p. &EDISON
Slide 20: Delivering Our Strategy
Leading Delivering Diversified Positioned Investment Southern Balancing Strategic Pursuing Decoupled Edison Narrowed Preserve Our February keyMission International operating the and focus advanced 29, California and electric for Superior regulatory discipline platform Way 2012 enhance long-term refo
Slide 21: Financing Strategies
Leading Financing Southern Authorized Periodic Issue Edison No Preserve Lower Reduce Capistrano Dividend Modest Target February financial short-term payout and Mission O&M development annual the issuance and 29, California Policy Strategies delay Wind CPUC Way support 2012 enhance ratio spending inc
Slide 22: Debt and Credit Facilities Maturities
Leading Debt December ($ 2012 Short- EMG1 Expiration SCE EME2 MWG3 321EIX February Includes EME MWG millions) 10 —$419 $— Maturity 2013 and 600 57 credit — 1,426 500 the credit $2,894 29, 755 $— 31, project — Long-Term of 2014 —Way —2012 Credit facility —2011 Profiles 284 facility $1,200 2015 infina
Slide 23: Reconciliation of Core Earnings to GAAP Earnings
Leading ($ Reconciliation Earnings Edison Core Non-core SCE EMG EIX Total 21GAAP February See Includes millions) parent –$181 – Earnings Non-core Use 34 –tax asset tax Earnings International tax impairment wind write-off write-down gain discontinued the (10) Attributable Non-GAAP 29, items settlemen
Slide 24: Our Dual Shareholder Value Proposition
Leading Our Dual Southern Among Supportive Leadership Narrowed Preserve Commitment Incentive Edison February Shareholder platform Mission people the the and 29, California compensation and regulatory in best Way 2012 enhance to renewable operating refocused committed Group long-term domestic Value i
Slide 25: SCE Appendix
Leading SCE February Appendix the 29,Way 2012in24 Electricity EDISONSM INTERNATIONAL®
Slide 26: SCE 2012 General Rate Case Application
SCEUtility Leading Application Rate Excludes Cost SCE’s $630 $220 The Public Proposed Final February Division increase 2012 of million decision current participation capital the 29, fuel decision CPUC Reform filed Way 2012 operation capital-related of driven and request isdetermined Ratepayer retroa
Slide 27: SCE Cost of Capital Mechanism
Leading SCE Moody’s Starting Feb-08 Since ROE If Moving By February index April Cost adjustment 2008, Feb-09 exceeds Index average the 20, Baa 29, ofSCE’s Way 2012, Capital 2012 Utility =Feb-10 6.26% was abased in1% 26 SCE CPUC Electricity Mechanism Index 5.76% EDISON deadband Feb-11 on Moody’s will
Slide 28: SCE Transmission Projects
Leading SCE In Project Phase Date River(4) Devers-Colorado Engineering Eldorado-Ivanpah(3) Red Construction Alberhill DCR Tehachapi 1Transmission 2Capital 43upon delays. Santa Whirlwind Rector Los Pardee Ana San Colorado Valley Loma Cross Eldorado Ivanpah Redbluff Devers Highwind Antelope February F
Slide 29: Other SCE Regulatory Cases
Leading Other Case Number Settlement FERC Rate initiated CPUC Modification Tehachapi to Devers-Colorado 1st May Eldorado-Ivanpah Transmission Permit converted Alberhill Assessment submitted Negative Four approving February be half Filing 2011, Corners Date filed SCE Formula approval toof the Filing
Slide 30: SCE Consolidated Results
Leading SCE ($ Fuel Operation Depreciation, Property Gain Operating Income Dividends subject Net Core Non-Core Global Tax Total Twelve Utility Earning Activities $5,902 2,208 1,294 277 3,779 2,123 (378) 1,745 601 1,144 $59 — 1$1,085 1,085 millions) 3,356 —interest income impact 8and —Results on Earn
Slide 31: SCE Earnings Per Share Reconciliation
Leading SCE Reconciliation Earnings Attributable Core Non-core Tax Health Regulatory Generator Total 1Basic settlement Core EPS1 non-core EPS care February See the Per items settlement/refund EPS $2.38 $1.89 and 29,legislation Way to Use Share of items — SCE Non-GAAP tax 2012 $2.17 of in SCE $2.07 —
Slide 32: EMG Appendix
Leading EMG February Appendix the 29,Way 2012in31 Electricity EDISONSM INTERNATIONAL®
Slide 33: EMG Operating Platform
Leading EMG December Operating Coal2 Other Total Under Natural Wind 4321Pipeline4 964 133 141 19 1,884 305 5,172 240 144 167 244 461 190 55 February Natural Includes Deliveries Owned 40 479 120 10,379 1,861 120 Development Business 67 153 7,096 Construction Gas Gas3 the 29, or gas ~1,300 Platform1 2
Slide 34: EMG Capacity and Pricing
Leading EMG December Installed Capacity Price MW January June Midwest 321Homer 54capacity February Capacity Other Includes Excludes MW 1, per Coal City5 City 2012 2013 2014 capacity 1, the transactions Unsold Generation Average Capacity1 29, MW 31, 2012 the not Fleet renewable 172 Way 1,884 to 2012
Slide 35: Midwest Generation Operational Statistics
Leading Midwest •Operational 5,172 multi-year All-in $16.48 $31.40 $47.88 Q4 $17.31 $22.45 $39.76 1,884 2011 $18.06 $27.44 $45.50 2010 $17.17 $31.77 $48.94 Utilizes Coal 4321Average February Total Forced Capacity Equivalent Load Average See Includes 10sourced 11 Other MW4 MW Average Q4 Generation Fa
Slide 36: Homer City Operational Statistics
Leading Homer •Operational All-in $27.55 $31.70 $59.25 Q4 $29.91 $16.53 $46.44 Average 2011 $28.58 $26.68 $55.26 2010 $25.26 $34.16 $59.42 21Expect 3 Total Forced Capacity Equivalent Load 10 Average 11 FebruaryQ4 Generation Factor transfer City Includes the realized Outage 11 Factor Statistics Way (
Slide 37: EMG Completed Environmental Construction
Leading EMG Completed 2011 Mercury NOx SO2 ACI SNCR 0.0074 US 0.43 0.17 Will 0.008 Cost Waukegan 0.11 0.44 Joliet, 0.13 0.15 0.195 Up Construction 21Fleet-wide 3 toEPA $45 County 0.41 included 2006 or $628 Powerton, $105 Februaryorbelieves Based MATS the 90% million Waukegan 86%2 7requirement averag
Slide 38: EME Homer City Covenant Status
Leading EMG EME Midwest Debt Non-Recourse Homer Senior 21Covenant 3the February A E year Homer credit Senior to Credit Debt Rent City Capitalization ended the Generation City 29, Threshold threshold facility Rent Covenant Way Lease Service Obligations1 2012 believes Homer December Coverage in termin
Slide 39: EMG Q4 Comparative Operating Information
Leading EMG Q4 Midwest Energy Homer Generation Equivalent Performance Forced Pricing Average Flat Basis February 10 energy (PJM Comparative Q4 City outage only Information the realized cost Generation 29, 11 availability (in price West Way contracts 2012 Variance ofrate GWh) fuel energy –in Hub 38 4
Slide 40: EMG Adjusted EBITDA Reconciliation
Leading EMG December ($ Reconciliation Earnings Addback Discontinued Interest Income Depreciation EBITDA2 Production Asset Addback: Adjusted 21Due February Earnings See millions) toUse –impairments SCE Adjusted from expense income taxes the $10 29, (Deduct): EBITDA of 31, 129 refer tax Way pending N
Slide 41: EMG Realized Price Reconciliation
Leading EMG ($ Q4 Generation Less: All-in Add Realized Average Reconciliation Operating Renewable Fuel Midwest Homer Other Segment February millions) 10 back: costs Costs Unrealized Other revenues average Q4 City the realized revenues fuel Generation 29, 11 revenues $129 Unrealized (GWh) projects Wa
Slide 42: Use of Non-GAAP Financial Measures
Leading Use Edison Commission. subsidiary Core excluding attributable income securities subsidiary’s EBITDA assets, The gains time A February presentation. reconciliation average of of earnings orloss Non-GAAP International’s actual attributable losses the 29, is (vested income when on defined to Wa