Edison International · NYSE:EIX
Edison International — Q2 2014 Earnings Presentation
17 slides from Edison International's earnings presentation, Jul 31, 2014
Slide 1: Second Quarter 2014 Financial Results
Leading the Way in Electricity SM Second Quarter 2014 Financial Results July 31, 2014 1 EDISON INTERNATIONAL®
Slide 2: Forward-Looking Statements
Leading the Way in Electricity SM Forward-Looking Statements Statements contained in this presentation about future performance, including, without limitation, operating results, asset and rate base growth, capital expenditures, San Onofre Nuclear Generating Station (SONGS), and other statements tha
Slide 3: Second Quarter Earnings Summary
Leading the Way in Electricity SM Second Quarter Earnings Summary Q2 Q2 SCE Key Core Earnings Drivers Variance 2014 2013 Core EPS1 Higher revenue $0.17 SCE $1.11 $0.84 $0.27 SONGS impact 0.03 Higher O&M2 (0.02) EIX Parent & Other (0.03) (0.05) 0.02 Higher depreciation (0.05) Core EPS1 $1.08 $0.79 $0
Slide 4: Year-to-Date Earnings Summary
Leading the Way in Electricity SM Year-to-Date Earnings Summary YTD YTD SCE Key Core Earnings Drivers Variance 2014 2013 Core EPS1 Higher revenue $0.31 SCE $2.04 $1.63 $0.41 SONGS impact 0.02 Lower O&M2 0.05 EIX Parent & Other (0.06) (0.06) 0.00 Higher depreciation (0.12) Core EPS1 $1.98 $1.57 $0.41
Slide 5: SCE Capital Expenditures Forecast
Leading the Way in Electricity SM SCE Capital Expenditures Forecast ($ billions) $15.1 – $17.2 billion forecasted capital program 2014 – 2017 Distribution Transmission Generation $4.5 $4.4 • Capital expenditures forecast $4.1 $4.2 reaffirmed • CPUC GRC focused on infrastructure replacement • Include
Slide 6: SCE Rate Base Forecast
Leading the Way in Electricity SM SCE Rate Base Forecast ($ billions) 7 – 9% CAGR projected rate base 2014 – 2017 $29.2 $27.0 • Growth rate reaffirmed • Driven by infrastructure $24.4 replacement, reliability investments, and public policy $22.4 requirements • FERC rate base includes CWIP and is app
Slide 7: SCE Growth Drivers Beyond 2017
Leading the Way in Electricity SM SCE Growth Drivers Beyond 2017 Infrastructure Reliability Investment • Sustained level of infrastructure investment required until equilibrium replacement rates are achieved - includes underground cable, poles, switches, and transformers1 Grid Readiness • Accelerate
Slide 8: SCE Key Regulatory Events Calendar
Leading the Way in Electricity SM SCE Key Regulatory Events Calendar 2H 2014 1H 2015 2H 2015 2016 SONGS TBD – Proposed Decision Settlement (I.12-10-013) July – Revised Scoping Jan – Update Hearing 2015 GRC Memo (A.13-11-003) Aug – ORA testimony Sept - Evidentiary Hearings Sept – NEM Scoping Spring –
Slide 9: 2014 Core and Basic Earnings Guidance
Leading the Way in Electricity SM 2014 Core and Basic Earnings Guidance 2014 Earnings Key Assumptions: Guidance as of 4/29/14 • Midpoint rate base of $22.1 billion Low Mid High • Approved capital structure – SCE $3.85 48% equity, 10.45% CPUC & FERC ROE EIX Parent & Other (0.15) 1 • 325.8 million com
Slide 10: Creating Shareholder Value
Leading the Way in Electricity SM Creating Shareholder Value Create Sustainable Position for Resolve Earnings and Transformative Uncertainties Dividend Growth Sector Change • SCE 2013 cost of capital • 10% 5-year SCE rate base • Acquired SoCore Energy What We’ve • SCE 2012 FERC formula rate CAGR (20
Slide 11: Appendix
Leading the Way in Electricity SM Appendix July 31, 2014 11 EDISON INTERNATIONAL®
Slide 12: Changes Since Our Last Presentation
Leading the Way in Electricity SM Changes Since Our Last Presentation • Quarterly updates • SCE Growth Drivers Beyond 2017 (p. 7) – new slide • SCE Key Regulatory Events Calendar (p. 8) – new slide • 2014 Core and Basic Earnings Guidance (p. 9) • EIX is Responding to Industry Change (p. 13) – new sl
Slide 13: EIX is Responding to Industry Change
Leading the Way in Electricity SM EIX is Responding to Industry Change Long-Term Industry Trends Strategy • Public policy prioritizing environmental • SCE Strategy sustainability Invest in, build, and operate the next • Innovation facilitating conservation and self- generation electric grid genera
Slide 14: Earnings Non-GAAP Reconciliations
Leading the Way in Electricity SM Earnings Non-GAAP Reconciliations ($ millions) Reconciliation of EIX Core Earnings to EIX GAAP Earnings Earnings Attributable to Q2 Q2 YTD YTD Edison International 2014 2013 2014 2013 Core Earnings SCE $362 $274 $666 $530 EIX Parent & Other (10) (15) (20) (20) Core
Slide 15: SCE Results of Operations
Leading the Way in Electricity SM SCE Results of Operations ($ 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 specif
Slide 16: SCE Core EPS Non-GAAP Reconciliations
Leading the Way in Electricity SM 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 2008 2009 2010 2011 2012 2013 CAGR Core EPS $2.25 $2.68 $3.01 $3.33 $4.10 $3.88 12% Non-Core Items Tax settleme
Slide 17: Use of Non-GAAP Financial Measures
Leading the Way in Electricity SM 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. Co