Edison International · NYSE:EIX
Edison International — Q4 2015 Earnings Presentation
22 slides from Edison International's earnings presentation, Feb 23, 2016
Slide 1: Fourth Quarter and Full Year 2015 Financial Results
Fourth Quarter and Full Year 2015 Financial Results February 23, 2016
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 statem
Slide 3: Fourth Quarter Earnings Summary
Fourth Quarter Earnings Summary Q4 Q4 Variance Key SCE Core EPS Drivers 2015 2014 Core Earnings Per Share (EPS)1 Lower revenue3,4 $(0.15) - GRC return on rate base - pole loading 0.08 SCE $0.89 $1.09 $(0.20) - Lower GRC revenue – other (0.26) EIX Parent & Other (0.01) (0.01) – - FERC revenue and oth
Slide 4: 2015 Earnings Summary
2015 Earnings Summary 2015 2014 Variance Key SCE Core EPS Drivers Core Earnings Per Share (EPS)1 Lower revenue3,4 $(0.25) - GRC return on rate base - pole loading 0.08 SCE $4.20 $4.68 $(0.48) - Lower GRC revenue – other (0.47) EIX Parent & Other (0.10) (0.09) (0.01) - FERC revenue and other 0.14 Cor
Slide 5: 2015 Core Earnings vs. Guidance Reconciliation
2015 Core Earnings vs. Guidance Reconciliation $0.06 $0.05 $4.10 SCE $3.97 $0.08 $0.01 EIX Parent & $0.08 Other $(0.15) • Pole Loading – Equity Portion - $0.05 Total • Pole Loading – $3.82 Debt & Preferred Portion - $0.03 • Bonus Depreciation - None November 9, Additional Rate Lower O&M Financing In
Slide 6: SCE 2016-2017 Capital Expenditure Forecast
SCE 2016-2017 Capital Expenditure Forecast ($ billions) $8.0 – $8.3 Billion Capital Program for Distribution Transmission Generation 2016-2017 • Reflects CPUC 2015 GRC decision $4.1 $4.2 $3.9 • Includes up to 115% of capital spending for the pole loading and deteriorated poles program for 2016 and 2
Slide 7: SCE Large Transmission Projects
SCE Large Transmission Projects Large Transmission Projects Tehachapi 4-11 • $2.5 billion total project cost; remaining investment $300 million • 2016-17 in service date West of Devers • $1.1 billion total project cost; remaining investment $1.0 billion • 2021 in service date; majority of capital sp
Slide 8: SCE 2016-2017 Rate Base Forecast
SCE 2016-2017 Rate Base Forecast ($ billions) 7% Average Annual Rate Base Growth for 2015-2017 Outlook • Incorporates 2015 GRC final decision with Range bonus depreciation provision, except “rate $26.8 base offset” excluded because of write off $25.1 of regulatory asset related to 2012-2014 incremen
Slide 9: SCE Rate Base Forecast Updates
SCE Rate Base Forecast Updates ($ billions) 2015 2016 2017 Prior Outlook – November 2015 $23.0 $24.8 $26.7 Bonus Depreciation CPUC (0.0) (0.2) (0.4) FERC (0.0) (0.1) (0.3) Subtotal Bonus Depreciation (0.0) (0.3) (0.7) Incremental Pole Loading Rate Base 0.3 0.6 0.7 FERC 0.0 0.0 0.1 Total Change 0.3 0
Slide 10: 2016 Core and Basic Earnings Guidance
2016 Core and Basic Earnings Guidance 2016 Earnings Guidance as of February 23, 2016 Key Assumptions (core) Low Mid High • Revenues based on GRC final decision SCE $4.09 • Weighted-average 2016 rate base of $25.1 billion (see Rate Base Forecast) EIX Parent & Other (0.18) • Energy efficiency earnings
Slide 11: EIX Annual Dividends Per Share
EIX Annual Dividends Per Share Twelve Years of Dividend Growth $1.92 $1.67 $1.42 $1.30 $1.35 $1.24 $1.26 $1.28 $1.22 $1.16 $1.08 $1.00 $0.80 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Target dividend growth at a higher than industry growth rate within its target payout ratio of
Slide 12: Appendix
Appendix February 23, 2016 11
Slide 13: SCE Tax Memorandum Account
SCE Tax Memorandum Account • 2015 GRC decision established tax accounting memorandum account (TAMA), which tracks 2015 – 2017 tax benefits or costs associated with following events: - changes in tax accounting methods - changes in tax laws and regulations impacting depreciation or tax repair - chang
Slide 14: Other SCE Financial Topics
Other SCE Financial Topics Topic Update Comments ($ millions, except where otherwise noted) December 31, June 30, December 31, 2015 2015 2014 Weighted-average equity Expect to remain above 48% 49.9% 48.9% 48.4% percentage regulatory minimum Maximum additional dividend $441 $215 $87 payable to EIX Li
Slide 15: SCE Results of Operations
SCE Results of Operations ($ millions) • Utility earning activities – revenue authorized by CPUC and FERC to provide reasonable cost recovery and return on investment • Utility cost-recovery activities – CPUC- and FERC-authorized balancing accounts to recover specific project or program costs, subje
Slide 16: 2015 Non-Core Items
2015 Non-Core Items Q4 Q4 2015 2014 2015 2014 SCE Write down, impairment and other charges ) GRC Decision – write-down of regulatory assets $(1.18) $(1.18) SONGS settlement $0.08) $(0.22) NEIL insurance recoveries 0.04) 0.04) –) EIX Parent and Other Edison Capital sale of affordable housing projects
Slide 17: Earnings Non-GAAP Reconciliations
Earnings Non-GAAP Reconciliations ($ millions) Reconciliation of EIX Core Earnings to EIX GAAP Earnings Earnings Attributable to Edison International Q4 Q4 2015 2014 2015 2014 Core Earnings SCE $290 $356 $1,368 $1,525 EIX Parent & Other (3) (1) (32) (28) Core Earnings $287 $355 $1,336 $1,497 Non-Cor
Slide 18: SCE Core EPS Non-GAAP Reconciliations
SCE Core EPS Non-GAAP Reconciliations Reconciliation of SCE Core Earnings Per Share to SCE Basic Earnings Per Share Earnings Per Share Attributable to SCE 2010 2011 2012 2013 2014 2015 CAGR Core EPS $3.01 $3.33 $4.10 $3.88 $4.68 $4.20 7% Non-Core Items Tax settlement 0.30 — — — — — Health care legis
Slide 19: EIX is Responding to Industry Change
EIX is Responding to Industry Change Long-Term Industry Trends Strategy • Public policy and large commercial SCE Strategy customers prioritizing sustainability • Invest in, build, and operate the next objectives generation electric grid • Innovation facilitating conservation and • Operational and se
Slide 20: Edison Energy Focus: Commercial & Industrial
Edison Energy Focus: Commercial & Industrial Changing Customer Needs The Opportunity: Trusted Advisor and Solution Integrator • Create energy services that help simplify and optimize energy needs for large commercial & industrial customers: – Help customers better assess and capture the value of ene
Slide 21: Edison Energy: Acquired Businesses Summary
Edison Energy: Acquired Businesses Summary • Hundreds of solar solutions designed and installed across 16 states, SoCore offers multisite retailers, REITs and industrial companies portfolio-wide solar solutions that provide energy cost savings and carbon reduction opportunities • Provides comprehens
Slide 22: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Edison International's earnings are prepared in accordance with generally accepted accounting principles used in the United States. Management uses core earnings internally for financial planning and for analysis of performance. Core earnings are also used when com