Edison International · NYSE:EIX
Edison International — Q3 2024 Earnings Presentation
27 slides from Edison International's earnings presentation, Oct 29, 2024
Slide 1: Third-Quarter 2024 Financial Results
THIRD-QUARTER 2024 FINANCIAL RESULTS OCTOBER 29, 2024
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: Third Quarter Key Messages
Third Quarter Key Messages 1 Continued strong quarterly results; narrowing 2024 Core EPS guidance $1.33 $1.51 Q3 2024 GAAP EPS Q3 2024 Core EPS1 In final stages of two key regulatory proceedings: 2 awaiting proposed decisions on TKM settlement agreement and 2025 GRC Narrowed 3 Remarkable success ove
Slide 4: Resolution of legacy wildfires entering final stages: TKM settled and Woolsey application filed
Resolution of legacy wildfires entering final stages: TKM settled and Woolsey application filed Both cost recovery applications for 2017/2018 TKM: 2025 Modeling Considerations Wildfire/Mudslide Events now filed CPUC final decision on settlement triggers accounting in the quarter received TKM Woolsey
Slide 5: 2025 GRC record complete — now awaiting proposed decision
2025 GRC record complete — now awaiting proposed decision All steps by parties complete. Awaiting Partial settlements2 with intervenors issuance of proposed decision covering 12 areas Event Date – Represents ~19% of O&M and ~8% of capital request Reply Briefs August 5, 2024 – Would approve ~96
Slide 6: Our team has achieved remarkable success over the last several years
“Our team has achieved Industry-leading wildfire mitigation plan execution, with 85% of high fire remarkable success over risk areas physically hardened the last several years managing unprecedented climate challenges, Strong regulatory decisions and cost recovery in increasingly constructive ma
Slide 7: SCE's wildfire mitigation and improved state fire suppression have significantly reduced damage
SCE’s wildfire mitigation and improved state fire suppression have significantly reduced damage when ignitions occur1 Significant decrease in acres burned from SCE’s ignitions1 Thousands of Acres Burned from CPUC-reportable and ESIR ignitions in SCE’s High Fire Risk Area (HFRA)1 Substantial physical
Slide 8: EIX is directly contributing to California's clean energy transition by taking steps to reach net zero
EIX is directly contributing to California’s clean energy transition by taking steps to reach net zero Our Net-Zero Action Plan Reaching net-zero GHG Emissions by 2045 Reducing Scope 1, 2, and 3 Emissions GHG Emissions Reductions by 2045 (MMT CO2e) Deliver Carbon-Free Power to 1 SCE’s Customers: Inc
Slide 9: Third-Quarter Earnings Summary
Third-Quarter Earnings Summary Q3 2024 Q3 2023 Variance Key SCE EPS Drivers2 Higher revenue3,4 $ 0.46 Basic Earnings Per Share (EPS) GRC escalation 0.36 SCE $ 1.56 $ 0.62 $ 0.94 Other CPUC revenue 0.06 FERC and other operating revenue 0.04 EIX Parent & Other (0.23) (0.22) (0.01) Higher O&M4 (0.17) 4
Slide 10: GRC underpins ~$38–43 billion 2023–2028 capex forecast
GRC underpins ~$38–43 billion 2023–2028 capex forecast; substantial additional investment opportunities offer upside Capital deployment expected to increase in 2025–20281 Capital Expenditures, $ in Billions Forecast Forecast does not include $8.1 $8.2 $7.7 substantial additional capital $7.5 0.9 1.0
Slide 11: Projected ~6–8% rate base growth 2023–2028
Projected ~6–8% rate base growth 2023–2028; substantial additional investment opportunities offer upside Strong rate base growth driven by wildfire mitigation and important grid work to support California’s leading role in clean energy transition Rate Base1, $ in Billions ~8% CAGR Forecast does not
Slide 12: Cash flow from memo account recovery and securitization strengthens balance sheet and credit metrics
Cash flow from memo account recovery and securitization strengthens our balance sheet and credit metrics Remaining GRC and Wildfire-related Application Recoveries $ in Millions ~$4.5 Approved Applications billion Application / Account Balance @ Sept. 30, ’24 Recovery Through Remaining Rate Recovery
Slide 13: EIX narrows 2024 Core EPS guidance to $4.80–5.00
EIX narrows 2024 Core EPS guidance to $4.80–5.00 EIX 2024 Core Earnings Per Share Guidance Range Building from SCE Rate Base EPS 2024 Modeling Considerations 2024 2024 Rate Base EPS: CPUC ROE: 10.75% / FERC ROE: 10.30% 2023 YTD Guidance SCE Operational Variance includes: Rate Base EPS 5.51 4.54 6.06
Slide 14: EIX reaffirms 5–7% 2021–2025 Core EPS growth rate target
EIX reaffirms 5–7% 2021–2025 Core EPS growth rate target, which would result in 2025 Core EPS of $5.50–5.901 2025 Core Earnings per Share Component Ranges Component Modeling Considerations Rate Base EPS • CPUC ROE of 10.33% and FERC ROE 10.30% (based on capex levels) • Reflects reduction in 2025 ROE
Slide 15: EIX expects 5–7% Core EPS growth for 2025–2028 with minimal equity needs
EIX expects 5–7% Core EPS growth for 2025–2028, with financing plan showing minimal equity needs Achievable EPS growth for 2028 2025–2028 EIX consolidated financing plan2 Core Earnings per Share Guidance1 $ in Billions $6.60–7.00 5–7% Dividends3 Equity CAGR $5.70 Incremental Debt4 ~$0.4 $6–7 $8–11 C
Slide 16: EIX offers double-digit total return potential
EIX offers double-digit total return potential 5–7% Core EPS CAGR1 Underpinned by strong rate base growth of ~6–8% 2021–2025 and 2025–2028 $38–43 billion 2023–2028 capital program ~4% 20 consecutive years of dividend growth current dividend yield2 Target dividend payout of 45–55% of SCE core earning
Slide 17: Additional Information
ADDITIONAL INFORMATION
Slide 18: Year-to-Date Earnings Summary
Year-to-Date Earnings Summary YTD 2024 YTD 2023 Variance Key SCE EPS Drivers2 Higher revenue3,4 $ 1.65 Basic Earnings Per Share (EPS) GRC escalation 1.00 Other CPUC revenue 0.63 SCE $ 3.09 $ 2.69 $ 0.40 FERC and other operating revenue 0.02 EIX Parent & Other (0.64) (0.55) (0.09) Higher O&M4 (0.61)
Slide 19: Key Takeaways of TKM Settlement Agreement
Key Takeaways of TKM Settlement Agreement Authorized 60% of claims, financing, and legal costs (~$1.6 billion WEMA recovery) Amounts 85% of restoration costs (~$55 million CEMA recovery) Permanent Capital Permanently exclude after-tax charges to equity and associated debt from SCE’s Structure Exclus
Slide 20: SCE Key Regulatory Proceedings
SCE Key Regulatory Proceedings Proceeding Description Next Steps Base Rates 2025 GRC Sets CPUC base revenue requirement for 2025–2028. For more Awaiting proposed decision (A.23-05-010) information, see the Investor Guide to SCE’s 2025 GRC Wildfire TKM Cost Recovery Requesting approval of settlement
Slide 21: Woolsey Cost Recovery Proposed Schedule
Woolsey Cost Recovery Proposed Schedule Event SCE Proposed Date Application Filed October 8, 2024 Protests and responses November 12, 2024 SCE’s reply to protests November 22, 2024 Prehearing Conference Early December 2024 Scoping ruling issued Mid-December 2024 Intervenors’ prepared direct testim
Slide 22: SCE continues to fund wildfire claims payments with debt
SCE continues to fund wildfire claims payments with debt Wildfire Claims Payment-Related Debt Issuances Interest expense not currently recoverable in rates, $ in Millions except percentages, as of September 30, 20241 however, included in 2017/2018 Wildfire/Mudslide Series Principal Due Rate Events c
Slide 23: Key 2028 Earnings Sensitivities
Key 2028 Earnings Sensitivities Sensitivity Variable (“Per year” amounts refer to 2025–2028) 2028 EPS1 Capex & Rate Base $100 million/year of capex ~5¢ Rate Base AFUDC Annual capex of 1¢ $200 million Requested ~$400 million increase If requested increase +15–35¢ in depreciation in 2025 GRC not autho
Slide 24: Earnings Non-GAAP Reconciliations
Earnings Non-GAAP Reconciliations Reconciliation of EIX GAAP Earnings to EIX Core Earnings Net Income (Loss) Available to Edison International, $ in Millions Q3 2024 Q3 2023 2024 2023 SCE $ 602 $ 239 $ 1,190 $ 1,029 EIX Parent & Other (86) (84) (246) (210) Basic Earnings $ 516 $ 155 $ 944 $ 819 Non-
Slide 25: EIX Core EPS Non-GAAP Reconciliations
EIX Core EPS Non-GAAP Reconciliations Reconciliation of EIX Basic Earnings Per Share to EIX Core Earnings Per Share EPS Available to Edison International1 Q3 2024 Q3 2023 2024 2023 Basic EPS $ 1.33 $ 0.40 $ 2.45 $ 2.14 Non-Core Items SCE 2017/2018 Wildfire/Mudslide Events claims and expenses, net of
Slide 26: Earnings Per Share Non-GAAP Reconciliations
Earnings Per Share Non-GAAP Reconciliations Reconciliation of EIX Basic Earnings Per Share Guidance to EIX Core Earnings Per Share Guidance 2024 EPS Available to Edison International Low High Basic EIX EPS $3.37 $3.57 Total Non-Core Items1 (1.43) (1.43) Core EIX EPS $4.80 $5.00 1. Non-core items are
Slide 27: 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 (loss) internally for financial planning and for analysis of performance. Core earnings (loss) are also