Exelon Corporation · NASDAQ:EXC
Exelon — Q1 2023 Earnings Presentation
31 slides from Exelon's earnings presentation, May 3, 2023
Slide 1: Earnings Conference Call First Quarter 2023
May 3, 2023 Earnings Conference Call First Quarter 2023
Slide 2: Cautionary Statements Regarding Forward-Looking Information
Cautionary Statements Regarding Forward-Looking Information This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. Words such as “could,” “may,” “expects,” “anticipates,” “w
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures Exelon reports its financial results in accordance with accounting principles generally accepted in the United States (GAAP). Historical results were revised from amounts previously reported to reflect only Exelon continuing operations. Exelon supplements the reporting of
Slide 4: Key Messages
Key Messages • GAAP Earnings of $0.67 per share in Q1 2023 versus $0.49 per share in Q1 2022 Financial and • Adjusted Operating Earnings* of $0.70 per share in Q1 2023 versus $0.64 per share in Q1 2022 Operational • Continue to execute at high operational levels, with best-on-record reliability perf
Slide 5: Operating Highlights
Operating Highlights YTD 2023 Operations Metric • Reliability remains strong BGE ComEd PECO PHI ―ComEd earned top decile SAIFI performance; BGE, Safety OSHA Recordable Rate (1) PECO, and PHI achieved first quartile, with ComEd and PHI recording best-on-record performance 2.5 Beta SAIFI ― ComEd uphel
Slide 6: Q1 2023 QTD Adjusted Operating Earnings Waterfall
Q1 2023 QTD Adjusted Operating Earnings* Waterfall $0.02 BSC Allocations Adjustment for $0.04 Distribution Rates(1) $0.01 Distribution Rates Discontinued Operations(4) $0.01 CMC Carrying Costs(2) ($0.01) Interest Expense ($0.02) Interest Expense $0.02 Other $0.70 $0.64 $0.05 ($0.04) $0.03 $0.02 $0.2
Slide 7: Exelon Distribution Rate Case Updates
Exelon Distribution Rate Case Updates Revenue Requested ROE / Expected/Received Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Requirement Equity Ratio Order Date DPL DE (1,2) 10.50% / CF IT RT EH $47.8M Q2 2024 Electric 50.50% 2024: 10.50% / 50.58% (1,4) $1.49B 2025: 10.55% / 50.81% ComEd(3) C
Slide 8: Advancing an Equitable Transition to Cleaner Energy in the District of Columbia
Advancing an Equitable Transition to Cleaner Energy in the District of Columbia DC’s Transformative Climate Ready Pathway …Drives the Proposed Investment in Pepco DC’s Energy Policies 2024-2026 Plan Multi-Year Plan (MYP) Filing 10% 9% Major Investment Categories(3) 100% $1.6B 7% 16% Capacity Expansi
Slide 9: Featured Capital Investment: ACE's Smart Energy Network
Featured Capital Investment ACE’s Smart Energy Network Installation began in 2022 to replace all ~568,000 existing traditional electric meters with smart meters by mid-2024. Enhanced network reliability with faster and more efficient power restoration efforts for customer homes and businesses follow
Slide 10: Maintaining a Strong Balance Sheet is a Top Financial Priority
Maintaining a Strong Balance Sheet is a Top Financial Priority S&P FFO / Debt %* and Moody’s CFO (Pre-WC) / Debt %* • Executed ~80% of our 2023 debt financing needs in Q1 which substantially mitigates interest rate volatility over balance of year; strong interest in debt 15% offerings supported by t
Slide 11: 2023 Business Priorities and Commitments
2023 Business Priorities and Commitments ❖ Maintain industry-leading operational excellence ❖ Achieve constructive rate case outcomes for customers and Industry-Leading shareholders Platform ❖ Deploy $7.2B of capex for the benefit of the customer Financial Sustainable Operational ❖ Earn consolidated
Slide 12: Additional Disclosures
Additional Disclosures 12
Slide 13: Delivering Sustainable Value as the Premier T&D Utility
Delivering Sustainable Value as the Premier T&D Utility SUSTAINABLE VALUE INDUSTRY-LEADING PLATFORM ✓ Size and Scale: Largest T&D utility in the country serving 10+ million customers ✓ Strong Growth Outlook: ~$31.3B of T&D capital from 2023-2026 to meet customer needs, resulting in expected rate bas
Slide 14: Key Modeling Drivers and Assumptions
Key Modeling Drivers and Assumptions 2023 2024 2025 2026 YoY YoY YoY YoY OpCo Drivers(1) Drivers(1) Drivers(1) Drivers(1) EPS EPS EPS EPS BGE Gas and electric MYP 1 year 3 Gas and electric MYP 2 year 1 Gas and electric MYP 2 year 2 Gas and electric MYP 2 year 3 rates, MYP 1 reconciliation (2021 rate
Slide 15: Exelon's Annual Earned Operating ROEs
Exelon’s Annual Earned Operating ROEs* 9.6% 10.0% 9.5% 9.4% 9.2% 9.4% 8.7% 2016 2017 2018 2019 2020 2021 2022 2023 operating ROE* on track to be within our 9-10% targeted range Note: Represents the twelve-month periods December 31, 2016-2022 for Exelon’s utilities (excludes Corp). Earned operating R
Slide 16: Exelon Debt Maturity Profile
Debt Balances (as of 3/31/23)(1,2) Exelon Debt Maturity Profile(1,2) BGE Short-Term Debt $0.2B Long-Term Debt(4) $4.2B Total Debt $4.4B As of 3/31/2023 ComEd $0.4B $11.7B $12.1B ($M) PECO $0.2B $4.8B $4.9B PHI - $8.6B $8.6B Corp $0.5B(3) $11.2B(4) $11.7B Exelon $1.3B $40.5B $41.8B 2,400 600 1,650 99
Slide 17: 2023 Financing Plan
2023 Financing Plan(1) OpCo Instrument Issuance ($M) Maturity ($M) Issued ($M)(3) Remaining ($M) FMB $975 - $975 - FMB $350 - $350 - FMB $75 - $75 - FMB $650 ($500) $650 - FMB $525 ($50) - $525 Senior Notes $600 ($300) - $600 Senior Notes $2,500 ($850)(2) $2,500 - $425M of equity expected Equity - -
Slide 18: Exelon Adjusted Operating Earnings Sensitivities
Exelon Adjusted Operating Earnings* Sensitivities Interest Rate Sensitivity to +50bp 2023E 2024E (1) 30-Year US Treasury Yield $0.02 $0.00 (2) Cost of Debt $(0.00) $(0.01) Exelon Consolidated Effective Tax Rate 16.5% 8.9% Exelon Consolidated Cash Tax Rate 9.2% 8.3% (1) Reflects full year impact to a
Slide 19: Rate Case Details
Rate Case Details 19
Slide 20: Delmarva DE (Electric) Distribution Rate Case Filing
Delmarva DE (Electric) Distribution Rate Case Filing Rate Case Filing Details Notes Docket No. 22-0897 • December 15, 2022, Delmarva Power filed an application with the Delaware Public Service Commission (DPSC) Test Year July 1, 2022 – June 30, 2023 seeking an increase in electric distribution rates
Slide 21: ComEd Distribution Rate Case Filing
ComEd Distribution Rate Case Filing Multi-Year Plan Case Filing Details Notes Formal Case No. 23-0055 • January 17, 2023, ComEd filed a four-year multi-year plan (MYP) request with the Illinois Commerce Commission (ICC) seeking an Test Year January 1 – December 31 increase in electric distribution b
Slide 22: ACE Distribution Rate Case Filing
ACE Distribution Rate Case Filing Rate Case Filing Details Notes Docket No. ER23020091 • February 15, 2023, ACE filed a distribution base rate case with the New Jersey Board of Public Utilities (NJBPU) to Test Year July 1, 2022 – June 30, 2023 increase distribution base rates Test Period 5 months ac
Slide 23: BGE Distribution Rate Case Filing
BGE Distribution Rate Case Filing Multi-Year Plan Case Filing Details Notes Formal Case No. 9692 • February 17, 2023, BGE filed a three-year multi-year plan (MYP) request with the Maryland Public Service Test Year January 1 – December 31 Commission (MDPSC) seeking an increase in electric and Test Pe
Slide 24: Pepco DC Distribution Rate Case Filing
Pepco DC Distribution Rate Case Filing Multi-Year Plan Case Filing Details Notes Formal Case No. 1176 • April 13, 2023, Pepco submitted its “Climate Ready Pathway DC” three-year multi-year plan (MYP) application to the Test Year January 1 – December 31 Public Service Commission of the District of Co
Slide 25: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 25
Slide 26: Projected GAAP to Operating Adjustments
Projected GAAP to Operating Adjustments • Exelon’s projected 2023 adjusted (non-GAAP) operating earnings excludes the earnings effects of the following: – Certain costs related to a change in environmental liabilities; – Costs related to a change in ComEd’s FERC audit liability; – Costs related to t
Slide 27: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations(1) (2) (3) S&P FFO/Debt = FFO (a) Moody’s CFO (Pre-WC)/Debt = CFO (Pre-WC) (c) Adjusted Debt (b) Adjusted Debt (d) S&P FFO Calculation(2) Moody’s CFO (Pre-WC) Calculation(3) GAAP Operating Income Cash Flow From Operations + Depreciation & Amortization +/- Working Cap
Slide 28: Q1 QTD GAAP EPS Reconciliation
Q1 QTD GAAP EPS Reconciliation Three Months Ended March 31, 2023 ComEd PECO BGE PHI Other Exelon 2023 GAAP Earnings (Loss) from Continuing Operations Per Share $0.24 $0.17 $0.20 $0.16 ($0.09) $0.67 Change in Environmental Liabilities - - - 0.02 - 0.02 Change in FERC Audit Liability 0.01 - - - - 0.01
Slide 29: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Exelon Operating TTM ROE Reconciliation ($M)(1) 2016 2017 2018 2019 2020 2021 2022 Net Income (GAAP) $1,103 $1,704 $1,836 $2,065 $1,737 $2,225 $2,501 Operating Exclusions $461 ($24) $32 $30 $246 $82 $96 Adjusted Operating Earnings $1,564 $1,680 $1,869 $2,095 $1,984 $
Slide 30: Thank you
Thank you Please direct all questions to the Exelon Investor Relations team: InvestorRelations@ExelonCorp.com 312-394-2345
Slide 31: C\ exelon’
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