Exelon Corporation · NASDAQ:EXC
Exelon — Non-Deal Roadshow (June 2023)
54 slides from Exelon's roadshow presentation, Jun 5, 2023
Slide 1: Summer 2023 Investor Meetings
Summer 2023 Investor Meetings
Slide 2: Cautionary Statements Regarding Forward-Looking Information
2 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,”
Slide 3: Non-GAAP Financial Measures
3 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
Slide 4: Who is Exelon?
4 Who is Exelon? (1) Customer count reflects the sum of Exelon’s total gas and electric customer base; Exelon consolidated customer count may not sum due to rounding 1.3 million Electric customers 0.7 million Gas customers 2022 Rate Base: $9.1B Territory: MD Main City: Baltimore Population: 0.6M 4.1
Slide 5: Premier Utility by Scope and Scale
5 Premier Utility by Scope and Scale Note: reflects most recent available data as of May 12, 2023 (1) Customer count reflects the sum of Exelon’s total gas and electric customer base. (2) Includes transmission, distribution and generation; represents 2023E rate base projections as disclosed by the c
Slide 6: Delivering Sustainable Value as the Premier T&D Utility
6 Delivering Sustainable Value as the Premier T&D Utility Industry-Leading Platform Leading ESG Profile Operational Excellence Financial Discipline Sustainable Value SUSTAINABLE VALUE ✓ Strong Growth Outlook: ~$31.3B of T&D capital from 2023-2026 to meet customer needs, resulting in expected rate ba
Slide 7: Diverse, Fully Regulated T&D Utility Servicing Large Urban Areas Across Seven Regulatory Jurisdictions
7 Diverse, Fully Regulated T&D Utility Servicing Large Urban Areas Across Seven Regulatory Jurisdictions Fully Regulated, Transmission and Distribution (1) Represents 2023E rate base. (2) Other includes long-term regulatory assets, which generally earn a return consistent with rate base, including E
Slide 8: Best-in-Class Operations
8 Best-in-Class Operations Note: reflects 2021 company performance (the latest comparable data set for Exelon and its peers); peer data reflects only a subset (top 10) of the panel of companies that report operational metrics (1) Quartiles are calculated using reported results by the full panel of p
Slide 9: Safely Powering Reliability and Resilience
9 Safely Powering Reliability and Resilience Undergrounding Cable Initiative • DC Power Line Undergrounding is a multi-year program to underground more than 20 of the most vulnerable overhead distribution lines, spanning over 6-8 years with work that began in early 2019 • Expected to improve resilie
Slide 10: Advancing Clean Energy Choices and Driving Customer Value
10 Advancing Clean Energy Choices and Driving Customer Value Consistently Delivering Top Quartile Customer Satisfaction Scores(2) Energy Efficiency • Offer nationally recognized energy efficiency portfolios, including incentives and behavioral programs across all our jurisdictions, saving almost 24.
Slide 11: Alternative Regulatory Mechanisms Across Variety of Jurisdictions
11 Alternative Regulatory Mechanisms Across Variety of Jurisdictions (1) Reflects expected rate base growth for 2023E-2026E (calculated from 2022 base year); DPL MD transition from traditional base rates to multi-year plan in 2023 more than offsets projected growth in remaining jurisdictions with tr
Slide 12: Exelon is an Industry Leader in ESG
12 Exelon is an Industry Leader in ESG DIVERSITY, EQUITY & INCLUSION (DE&I) • Executive Committee is 64% women or people of color • Created Executive-led Racial Equity Task Force in 2020 SUPPORTING OUR DIVERSE COMMUNITIES • More than 80 company-sponsored workforce development programs address econom
Slide 13: Path to Clean: Reaching a Net-Zero Footprint
13 Path to Clean: Reaching a Net-Zero Footprint COMPANY AND OPERATIONS Reducing Operations-Driven Emissions by 50% by 2030 and Net-Zero by 2050 to Align with National Decarbonization Goals COMMUNITY SUPPORT Areas for Engagement and Advocacy Electrify 30% of our light and heavy-duty vehicle fleet by
Slide 14: Financial Outlook
14 Financial Outlook
Slide 15: Customer Needs and Industry Trends Continue to Support Investment Growth
15 Customer Needs and Industry Trends Continue to Support Investment Growth $22.9B $26.0B $26.7B $29.0B $20.8B $6.7B $3.9B 2019 - 2022E $31.3B 2021 - 2024E2020 - 2023E 2022 - 2025E 2023 - 2026E … and translates to higher rate base(2) growth 4-year capital investment(1) profile drives benefits for ou
Slide 16: Exelon's Annual Earned Operating ROEs
16 Exelon’s Annual Earned Operating ROEs* 9.5% 9.4% 9.6% 10.0% 8.7% 9.2% 9.4% 2022202020182016 20192017 2021 Note: Represents the twelve-month periods December 31, 2016-2022 for Exelon’s utilities (excludes Corp). Earned operating ROEs* represent weighted average across all lines of business (Electr
Slide 17: Managing Costs Well Below the Rate of Inflation
17 Managing Costs Well Below the Rate of Inflation $ in millions ❖ Exelon is well positioned to manage inflationary pressures • Working with business partners to mitigate price increases and avoid long lead times through negotiations, utilizing alternative suppliers, and purchasing in bulk • World-c
Slide 18: Long-Term Earnings Growth Supports Sustainable Dividend
Long-Term Earnings Growth Supports Sustainable Dividend 18 Targeting 6-8% Operating Earnings* CAGR from 2022 - 2026(1)(5) Note: amounts may not sum due to rounding (1) Includes after-tax interest expense associated with debt held at Corporate. (2) Reflects 2022 original earnings guidance based on ex
Slide 19: Maintaining a Strong Balance Sheet is a Top Financial Priority
19 Maintaining a Strong Balance Sheet is a Top Financial Priority S&P FFO / Debt %* and Moody’s CFO (Pre-WC) / Debt %* Credit Ratings(4) ExCorp ComEd PECO BGE ACE DPL Pepco Moody’s Baa2 A1 Aa3 A3 A2 A2 A2 S&P BBB A A A A A A Fitch BBB A A+ A A A A 14% 0% 12% 13% 15% 2023-2026E Average(1,2) 12% Exelo
Slide 20: Appendix
Appendix exelon
Slide 21: 2023 Business Priorities and Commitments
21 2023 Business Priorities and Commitments Focused on continued execution of operational, regulatory, and financial priorities to build on the strength of Exelon’s value proposition as the premier T&D utility ❖Maintain industry-leading operational excellence ❖ Achieve constructive rate case outcome
Slide 22: 2023 Adjusted Operating Earnings Guidance
22 2023 Adjusted Operating Earnings* Guidance Key Year-over-Year DriversAdjusted Operating Earnings* Guidance(1) Incremental investments in utility infrastructure Discontinued operations adjustment not applicable in post-separation results BGE and PHI MYP 1 reconciliation in process Return to normal
Slide 23: Key Modeling Drivers and Assumptions
23 Key Modeling Drivers and Assumptions 2023 2024 2025 2026 OpCo Drivers(1) YoY EPS Drivers(1) YoY EPS Drivers(1) YoY EPS Drivers(1) YoY EPS BGE Gas and electric MYP 1 year 3 rates, MYP 1 reconciliation (2021 and 2022), and transmission, offset by MYP 1 regulatory lag Gas and electric MYP 2 year 1 r
Slide 24: Utility Capex and Rate Base vs. Previous Disclosures
24 Utility Capex and Rate Base vs. Previous Disclosures Q4 2022 Capital Expenditures ($M) Q4 2022 Rate Base ($B) Analyst Day 2022 Capital Expenditures ($M) Analyst Day 2022 Rate Base ($B) 4,525 4,650 4,875 4,850 1,500 1,525 1,600 1,725 875 900 975 950 7,100 2023E 7,500 2022E 2024E 2025E 6,900 7,450
Slide 25: ComEd Capital Expenditure Forecast
25 ComEd Capital Expenditure Forecast Q4 2022 Capital Expenditures ($M)Analyst Day 2022 Capital Expenditures ($M) Project ~$11.1B of capital being invested from 2023-2026 2,100 2,075 2,025 2,350 2,450 425 475 525 575 650 2026E2022 2023E 2,525 2025E 2,550 2024E 2,550 2,925 3,100 2,025 2,050 2,000 1,9
Slide 26: PECO Capital Expenditure Forecast
Project ~$6.2B of capital being invested from 2023-2026 26 PECO Capital Expenditure Forecast 875 975 1,150 1,200 1,225 175 75 75 350 325 375 375 350 1,650 2025E2022 1,375 2024E2023E 50 1,575 50 2026E 1,400 1,600 850 950 1,075 1,100 175 75 100 125325 325 375 375 1,550 1,325 2022E 2024E2023E 2025E 1,3
Slide 27: BGE Capital Expenditure Forecast
Project ~$6.0B of capital being invested from 2023-2026 27 BGE Capital Expenditure Forecast 625 525 525 525 525 225 325 425 625 450 475 475 525 525 550 1,475 2026E2022 2023E 1,675 1,325 2024E 1,325 2025E 1,550 500 450 475 500 275 400 400 400 475 475 500 500 2023E2022E 2024E 1,325 1,225 2025E 1,4001,
Slide 28: PHI Consolidated Capital Expenditure Forecast
28 PHI Consolidated Capital Expenditure Forecast 1,200 1,225 1,275 1,325 1,375 650 550 575 600 625 125 100 2026E 1,925 2023E 75 2025E2022 2024E 75 75 1,900 1,950 1,975 2,075 1,175 1,200 1,325 1,275 600 525 550 550 100 100 2025E 75 2022E 2023E 2024E 75 1,850 1,825 1,950 1,875 Note: Numbers rounded to
Slide 29: ACE Capital Expenditure Forecast
Project ~$1.8B of capital being invested from 2023-2026 29 ACE Capital Expenditure Forecast 275 300 250 275 275 175 150 200 200 200 2022 2026E 425 2023E 2024E 2025E 450 450 475 475 300 300 300 275 175 150 175 175 2024E2022E 475 2023E 2025E 475 450 450 Electric Distribution(1)Electric Transmission No
Slide 30: DPL Capital Expenditure Forecast
Project ~$2.4B of capital being invested from 2023-2026 30 DPL Capital Expenditure Forecast 250 275 325 300 350 150 175 175 225 20075 125 100 75 75575 2023E 600 2022 2024E 2025E 475 2026E 575 600 250 250 300 275 150 150 150 175 100 100 75 75 525 475 2022E 2023E 525 2024E 500 2025E Electric Transmiss
Slide 31: Pepco Capital Expenditure Forecast
31 Pepco Capital Expenditure Forecast 675 650 725 750 775 325 250 225 175 225 900 2022 2026E2023E 2024E 925 2025E 1,000 900 975 625 650 725 700 275 225 225 200 2023E 900 900 2022E 900 2024E 2025E 950 Electric Transmission Electric Distribution(1) Note: Numbers rounded to nearest $25M and may not sum
Slide 32: 2023 Financing Plan
2023 Financing Plan(1) Capital plan financed with a balanced approach to maintain strong investment grade ratings OpCo Instrument Issuance ($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 $7
Slide 33: 2023-2026 Financing Plan
33 2023-2026 Financing Plan ~$17 ~$31 ~($6) ~$6 ~$13 Utility Investment 2023-2026 Adjusted Cash from Operations*(1) 2023-2026 Debt Maturity Debt Refinance Debt Issuance(2) ~$0.4 Equity Issuance(3) $ in billions Note: Financing plan is subject to change (1) Adjusted Cash from Operations* is net of co
Slide 34: Exelon Distribution Rate Case Updates
34 Exelon Distribution Rate Case Updates Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Revenue Requirement Requested ROE / Equity Ratio Expected/Received Order Date $41.8M (1,2) 10.50% / 50.50% Q2 2024 $1.49B (1,4) 4-Year MYP 2024: 10.50% / 50.58% 2025: 10.55% / 50.81% 2026: 10.60% / 51.03% 20
Slide 35: Delmarva DE (Electric) Distribution Rate Case Filing
35 Delmarva DE (Electric) Distribution Rate Case Filing (1) Revenue requirement includes changes in depreciation and amortization expense and other costs where applicable, which have no impact on pre-tax earnings. (2) Requested revenue requirement excludes the transfer of $13.7M of revenues from the
Slide 36: ComEd Distribution Rate Case Filing
36 ComEd Distribution Rate Case Filing (1) Revenue requirement includes changes in depreciation and amortization expense and other costs where applicable, which have no impact on pre-tax earnings. (2) Reflects the revenue requirement increases without the effects of ComEd’s proposed phase-in approac
Slide 37: ACE Distribution Rate Case Filing
37 ACE Distribution Rate Case Filing (1) Revenue requirement includes changes in depreciation and amortization expense and other costs where applicable, which have no impact on pre-tax earnings. (2) As permitted by New Jersey law, Atlantic City Electric may implement full proposed rates on November
Slide 38: BGE Distribution Rate Case Filing
38 BGE Distribution Rate Case Filing Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Rebuttal testimony 6/20/2023 2/17/2023Filed rate case Evidentiary hearings Intervenor testimony Initial briefs Reply briefs Commission order expected 7/31/2023 10/20/2023 10/10/2023 12/14/2023(4) 8/30/2023 – 9/8
Slide 39: Pepco DC Distribution Rate Case Filing
39 Pepco DC Distribution Rate Case Filing Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Evidentiary hearings Initial briefs Reply briefs Commission order expected Filed rate case 4/13/2023 Rebuttal testimony Feb 2024(3) Intervenor testimony Multi-Year Plan Case Filing Details Notes Formal Case No.
Slide 40: Pepco MD Distribution Rate Case Filing
40 Pepco MD Distribution Rate Case Filing May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Initial briefs 5/16/2023Filed rate case Intervenor testimony Rebuttal testimony Evidentiary hearings Reply briefs Commission order expected 3/11/2024(4) Multi-Year Plan Case Filing Details Notes Formal Case No.
Slide 41: Utility Highlights
41 Utility Highlights 2022 Electric Customer Mix (% of Volumes) (1) Commercial & Industrial (C&I) 66% 59% 55% 63% 55% 52% Residential 33% 39% 44% 34% 45% 48% Public Authorities/Other 1% 2% 1% 3% 0% 1% 2022 Gas Customer Mix (% of Volumes) (1) Commercial & Industrial (C&I) - 26% 52% - 28% - Residentia
Slide 42: Approved Distribution Rate Case Financials
42 Approved Distribution Rate Case Financials Approved Electric Distribution Rate Case Financials Revenue Requirement Increase/(Decrease) Allowed ROE Common Equity Ratio Rate Effective Date ComEd (Electric) $198.9M 7.85% 49.45% Jan 1, 2023 PECO (Electric) (1) $132.0M N/A N/A Jan 1, 2022 BGE (Electri
Slide 43: Approved Electric Transmission Formula Rate Financials
43 Approved Electric Transmission Formula Rate Financials Approved Electric Transmission Formula Rate Financials Revenue Requirement Increase/(Decrease) Allowed ROE(1) Common Equity Ratio Rate Effective Date(2) ComEd $83M 11.50% 55.00% Jun 1, 2023 PECO $30M 10.35% 54.12% Jun 1, 2023 BGE $7M 10.50% 5
Slide 44: Tracker Recovery Mechanisms for Specified Investments / Programs
44 Tracker Recovery Mechanisms for Specified Investments / Programs • Distribution System Improvement Charge (DSIC) tracker provides a mechanism to begin recovering gas and electric infrastructure investments for reliability every six months • Strategic Infrastructure Development and Enhancement (ST
Slide 45: Revenue Decoupling Mitigates Load Fluctuation Impacts
45 Revenue Decoupling Mitigates Load Fluctuation Impacts Non-Decoupled Load Volumes (GWh)(3)Revenue Decoupling Mitigates Load Fluctuations PECO 59% 7,880 36,764 39% 58% 41% DPL DE C&I Residential Pepco PECO ACE DPL MD ComEd DPL DE BGE Non-Decoupled Decoupled ~73% of Exelon’s distribution revenues ar
Slide 46: Exelon Debt Maturity Profile
Exelon Debt Maturity Profile(1,2) Debt Balances (as of 3/31/23)(1,2) Short-Term Debt Long-Term Debt(4) Total Debt BGE $0.2B $4.2B $4.4B ComEd $0.4B $11.7B $12.1B 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 850 500 807 750 650 1,000 303 1,250 1,1
Slide 47: Exelon Adjusted Operating Earnings Sensitivities
47 Exelon Adjusted Operating Earnings* Sensitivities Interest Rate Sensitivity to +50bp 2023E 2024E 30-Year US Treasury Yield (1) $0.02 $0.00 Cost of Debt (2) $(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 t
Slide 48: Reconciliation of Non-GAAP Measures
48 Reconciliation of Non-GAAP Measures
Slide 49: Projected GAAP to Operating Adjustments
49 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 t
Slide 50: GAAP to Non-GAAP Reconciliations
50 GAAP to Non-GAAP Reconciliations(1) GAAP Operating Income + Depreciation & Amortization = EBITDA - Cash Paid for Interest +/- Cash Taxes +/- Other S&P FFO Adjustments = FFO (a) Long-Term Debt + Short-Term Debt + Underfunded Pension (after-tax) + Underfunded OPEB (after-tax) + Operating Lease Impu
Slide 51: 2022 GAAP EPS Reconciliation
51 2022 GAAP EPS Reconciliation Twelve Months Ended December 31, 2022(1) ComEd PECO BGE PHI Other Exelon 2022 GAAP Earnings (Loss) from Continuing Operations Per Share $0.93 $0.58 $0.39 $0.62 ($0.44) $2.08 Asset Impairments - - 0.04 - - 0.04 Separation costs 0.01 - - 0.01 - 0.02 Income tax-related a
Slide 52: GAAP to Non-GAAP Reconciliations: Exelon Operating TTM ROE
52 GAAP to Non-GAAP Reconciliations Exelon Operating TTM ROE Reconciliation ($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 $1,98
Slide 53: Thank you
Thank you Please direct all questions to the Exelon Investor Relations team: InvestorRelations@ExelonCorp.com 312-394-2345
Slide 54: () exelon’
() exelon’