Slide 1: Building a Brighter Energy Future
Building a Brighter Energy Future Second Quarter 2019 Earnings Aug. 2, 2019
Slide 2: Cautionary Statements
Cautionary Statements Use of Non-GAAP Financial Measures In this presentation, Ameren has presented core earnings per share, which is a non-GAAP measure and may not be comparable to that of other companies. A reconciliation of GAAP to non-GAAP information is included in this presentation. Generally,
Slide 3: Business Update
Business Update Warner Baxter Chairman, President and Chief Executive Officer Ameren Corporation
Slide 4: Earnings and Guidance Summary
Earnings and Guidance Summary • Reaffirm 2019 diluted EPS guidance range of $3.15 to $3.35 Diluted EPS 2018 vs. 2019 • Key Q2 Earnings Variance Drivers $1.59 ↓ Lower Ameren Missouri weather-driven electric retail $1.50 sales and 2019 Callaway refueling and maintenance outage costs, which more than o
Slide 5: Successfully Executing Our Strategic Plan in 2019
Successfully Executing Our Strategic Plan in 2019 Our Strategic Plan • Investing in and operating our utilities in a manner consistent with existing regulatory frameworks Capital Expenditures • Enhancing regulatory frameworks and advocating for responsible energy and YTD June 30, 2019 economic polic
Slide 6: Executing Our Strategy – Renewable Energy Investments
Executing Our Strategy – Renewable Energy Investments Creating and capitalizing on opportunities for investment for the benefit of our customers and shareholders • Build-transfer agreements in place for 700 MWs of wind generation in Missouri, ~$1.2 billion investment1, to comply with Missouri’s RES
Slide 7: Long-Term Total Return Outlook
Long-Term Total Return Outlook • Expect 6% to 8% EPS CAGR from 2018-20231,2,3 – Primarily driven by strong rate base growth 2018-2023E Regulated Five-Year Rate Infrastructure Rate Base1,4 Base CAGR1 • Expect ~8% rate base CAGR from 2018-20231 ($ billions) – Includes ~$1 billion wind generation inves
Slide 8: Financial Update
Financial Update Marty Lyons Executive Vice President and Chief Financial Officer Ameren Corporation
Slide 9: 2019 Second Quarter Earnings Analysis
2019 Second Quarter Earnings Analysis Key Earnings Variance Drivers ↓ Ameren Missouri earnings — Lower electric retail sales: ~$(0.22) Diluted EPS • Weather vs. prior year: ~$(0.24); vs. normal ~$(0.06) Q2 2018 vs. Q2 2019 — Callaway Energy Center refueling and maintenance outage vs. none in 2018: $
Slide 10: 2019 EPS Guidance and Select Balance of the Year Considerations
2019 EPS Guidance and Select Balance of the Year Considerations • Reaffirm 2019 diluted EPS guidance range of $3.15 to $3.35 • Select considerations for Q3-Q4 2019 EPS compared to Q3-Q4 2019E Diluted EPS 2018 core EPS – Ameren Missouri return to normal weather in 2019: Q3 ~$(0.06); Q4 ~$(0.05) $3.35
Slide 11: July 2019 Missouri Electric Rate Review Filing
July 2019 Missouri Electric Rate Review Filing • $1 million annual revenue decrease request filed July 3 with MoPSC Proposed Procedural – Request allows for continued use of fuel adjustment clause, which requires rates to be Schedule: reset every four years, and provides flexibility to time next rat
Slide 12: July 2019 Missouri Electric Rate Review Filing, cont’d
July 2019 Missouri Electric Rate Review Filing, cont’d • Key drivers of requested $1 million annual revenue decrease – Decreased net energy costs1 otherwise subject to FAC recovery: ~$(100) million – Cost recovery through higher weather-normalized customer sales volumes: ~$(55) million – Decreased e
Slide 13: Select Regulatory Matters – Ameren Missouri and Ameren Illinois
Select Regulatory Matters – Ameren Missouri and Ameren Illinois Ameren Missouri Natural Gas • Reached non-unanimous stipulation and agreement with MoPSC Staff and certain intervenors, in late July, for $1 million annual revenue decrease – All other parties to rate review affirmed they do not object
Slide 14: Summary
Summary Expect to deliver strong earnings growth in 2019 with guidance in a range of $3.15 to $3.35 per diluted share Successfully executing our strategy; well positioned for future growth Strong long-term growth outlook • Expect 6% to 8% compound annual EPS growth from 2018 through 20231,2,3 • Expe
Slide 15: Appendix
RZ “7 Ameren
Slide 16: Four Constructive Regulatory Frameworks
Four Constructive Regulatory Frameworks FERC-regulated: Formula ratemaking • Allowed ROE is 10.82%1, which includes the MISO participation adder of 50 basis points Ameren • Rates reset each Jan. 1 based on forward-looking calculation with annual reconciliation Transmission • Constructive rate treatm
Slide 17: 2019 Earnings Analysis for Six Months Ended June 30
2019 Earnings Analysis for Six Months Ended June 30 Key Earnings Variance Drivers ↓ Ameren Missouri earnings — Lower electric retail sales: ~$(0.19) • Weather vs. prior year: ~$(0.23); vs. normal ~$(0.03) Diluted EPS — Callaway Energy Center refueling and maintenance outage vs. none in YTD June 2018
Slide 18: Select Regulatory Matters – Ameren Transmission
Select Regulatory Matters – Ameren Transmission • First and second complaint cases to reduce MISO’s FERC base ROE – In Sept 2016, FERC order issued in first complaint case set base ROE of 10.32% resulting in a total ROE of 10.82% including 50 basis point adder for MISO participation; order remains o
Slide 19: Executing Our Strategy – Investing in the Energy Grid
Executing Our Strategy – Investing in the Energy Grid Creating and capitalizing on opportunities for investment for the benefit of our customers and shareholders • Expect energy grid will be increasingly more important and valuable to our customers, communities and shareholders – Investing to modern
Slide 20: ESG: Environmental Focus – Achieving Balance Responsibly
ESG: Environmental Focus – Achieving Balance Responsibly • Transitioning Ameren Missouri’s generation to a cleaner, more diverse portfolio in a responsible fashion Ameren’s Planned CO2 Emissions – Preferred plan1 includes addition of at least 700 MWs of wind Percent Reductions from 2005 generation b
Slide 21: ESG: Social and Governance Focus – Culture of Sustainability
ESG: Social and Governance Focus – Culture of Sustainability Hyperlinked below • Diverse Board of Directors focused on strong accountability and governance – Board committed to maintaining a balance of perspectives, qualifications, qualities and skills DI • 50% are women or ethnically diverse – All
Slide 22: 2019 Long-Term Debt Financings and Maturities; Credit Ratings
2019 Long-Term Debt Ameren Credit Ratings Financings and Maturities and External Debt Balances1 • On Mar. 6, Ameren Missouri issued $450 million of 3.50% first mortgage bonds due 2029 As of June 30, 2019 $ in millions Moody's S&P – Proceeds used to repay short-term debt, including short- Ameren Corp
Slide 23: 2018 GAAP to Core Earnings Reconciliation
2018 GAAP to Core Earnings Reconciliation (in millions, except per share amounts) Year Ended Dec. 31, 2018 GAAP Earnings / Diluted EPS $815 $3.32 Charge for revaluation of deferred taxes resulting from decreased federal 13 0.05 income tax rate Core Earnings / Diluted EPS $828 $3.37 • Core earnings f
Slide 24: Investor Relations Calendar
Investor Relations Calendar AUGUST 2019 SEPTEMBER/EARLY OCTOBER 2019 SUN. MON. TUES. WED. THUR. FRI. SAT. SUN. MON. TUES. WED. THUR. FRI. SAT. 1 2 3 1 2 3 4 5 6 7 Q2 2019 Q2 2019 Barclays Fireside Quiet Period, Earnings Power Chat with Cont’d Call Conf. Dan Ford 4 5 6 7 8 9 10 8 9 10 11 12 13 14 11
Slide 25: Select Regulatory Matters
Select Regulatory Matters Missouri Public Service Commission • Order approving Renewable Choice Program agreement: Docket No. ET-2018-0063 • Order approving CCN for 400-MW wind facility and use of RESRAM: Docket No. EA-2018-0202 • CCN filing with MoPSC for 300-MW wind facility: Docket No. EA-2019-01
Slide 26: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations AFUDC – Allowance for funds used during construction ISRS – Infrastructure System Replacement Surcharge ALJ – Administrative Law Judge MEEIA – Missouri Energy Efficiency Investment Act ATXI – Ameren Transmission Company of Illinois MISO – Midcontinent Independent