Slide 1: Making an Impact: Second Quarter 2016 Earnings
Making anImpact Second Quarter 2016 Earnings August 5, 2016 Illinois Rivers Project Construction
Slide 2: Cautionary Statements
Cautionary Statements Use of Non-GAAP Financial Measures In this presentation, Ameren has presented core earnings, which is a non-GAAP measure and may not be comparable to those of other companies. A reconciliation of GAAP to non-GAAP results is included either on the slide where the non-GAAP measur
Slide 3: Business Update
Business Update Warner Baxter Chairman, President and Chief Executive Officer, Ameren Corp.
Slide 4: Earnings Summary
Earnings Summary Core Diluted EPS1 Key Q2 Core Earnings Variance Drivers: 2015 vs. 2016 Higher retail electric sales volumes, excluding Noranda, driven by warmer early summer temperatures $1.03 $1.04 Increased investment in electric transmission and distribution service infrastructure made under
Slide 5: Business Update
Business Update Our strategic plan Capital • Investing in and operating our utilities in a manner consistent with existing Expenditures regulatory frameworks YTD June 30 • Enhancing regulatory frameworks and advocating for responsible energy policies • Creating and capitalizing on opportunities for
Slide 6: Business Update, cont’d
Business Update, cont’d Executing our plan, cont’d • Illinois electric and natural gas distribution – Invested ~$320 million in distribution infrastructure projects in the first six months of 2016 • Investments in smart electric meters and gas modules, as well as in a more reliable electric grid and
Slide 7: Long-Term Total Return Outlook
Long-Term Total Return Outlook1 • Expect ~6.5% compound annual rate base growth from 2015 through 2020 2015 to 2020E Regulated 5-Yr Rate – Strong pipeline of investments to benefit customers Infrastructure Rate Base3 Base CAGR and shareholders % of $16.7 Total ~6.5% • Expect 5% to 8% compound annual
Slide 8: Financial and Regulatory Update
Financial and Regulatory Update Marty Lyons Executive Vice President and Chief Financial Officer, Ameren Corp.
Slide 9: GAAP to Core Earnings Reconciliation
GAAP to Core Earnings Reconciliation (In millions, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2015 2016 2015 2016 GAAP Earnings / Diluted EPS $ 150 $ 0.61 $ 147 $ 0.61 $ 258 $ 1.06 $ 252 $ 1.04 Results from discontinued operations Operating income before income t
Slide 10: Earnings Analysis for Second Quarter
Earnings Analysis for Second Quarter Core Diluted EPS Key Core Earnings Variance Drivers Higher retail electric sales volumes, excluding Noranda, driven by Q2 2015 vs. Q2 2016 warmer early summer temperatures: ~$0.07 – Warmer temperatures: ~+$0.07 vs. Q2 2015 and ~+$0.06 vs. normal $0.61 Increas
Slide 11: 2016 EPS Guidance: Select Balance of Year Considerations
2016 EPS Guidance: Select Balance of Year Considerations Q3-Q4 2016 compared to Q3-Q4 2015: 2016E Diluted EPS Return to normal temperatures – Q3 2016 ~flat; Q4 2016 ~+$0.08 $2.65 Increased electric transmission and distribution service infrastructure investments by ATXI and Ameren Illinois, net
Slide 12: Pending 2016 Missouri Electric Rate Case Filing
Pending 2016 Missouri Electric Rate Case Filing • $206 million annual electric revenue increase request filed July 1, 2016 with MoPSC, which would result in an average 7.8% increase in base PROPOSED PROCEDURAL SCHEDULE: rates – ROE: 9.9% vs. 9.53% in April 2015 order Dec. 9, 2016 Revenue requirement
Slide 13: Pending 2016 Missouri Electric Rate Case Filing, cont’d
Pending 2016 Missouri Electric Rate Case Filing, cont’d • Key drivers of requested $206 million annual revenue increase – New electric infrastructure investments: +$74 million • Depreciation: $39 million; return on rate base: $25 million; and property taxes1: $10 million – Reduced customer sales vol
Slide 14: Pending 2016 Illinois Electric Formula Rate Update
Pending 2016 Illinois Electric Formula Rate Update • $14 million net revenue requirement decrease filed in April 2016 with ICC in RATE UPDATE required annual formula rate update consisting of: SCHEDULE: – $96 million increase, including interest, for 2015 revenue requirement reconciliation and expec
Slide 15: Pending FERC MISO Complaint Cases
Pending FERC MISO Complaint Cases • Cases seek to reduce Ameren Illinois’ and ATXI’s transmission service allowed base ROE of 12.38% – Schedule for first case • ALJ initial decision issued Dec. 22, 2015 recommended a 10.32% base ROE • FERC final order expected in Q4 2016 – Schedule for second case •
Slide 16: Our Value Proposition to Investors
Our Value Proposition to Investors Strong long-term growth outlook • Expect ~6.5% compound annual rate base growth from 2015 through 20201 • Expect 5% to 8% compound annual EPS growth from 2016 through 20201 – Based on Feb. 2016 adjusted 2016 EPS guidance of $2.632 Attractive dividend • Current divi
Slide 17: Appendix
Appendix
Slide 18: Earnings Analysis for Six Months Ended June 30
Earnings Analysis for Six Months Ended June 30 Key Core Earnings Variance Drivers Core Diluted EPS Increased electric transmission and distribution infrastructure investments YTD 2015 vs. YTD 2016 by ATXI and Ameren Illinois, net of changes in ROEs: +$0.10 Higher Illinois natural gas distributio
Slide 19: FERC-Regulated Transmission Investment
FERC-Regulated Transmission Investment Planned $3.0 billion investment – 2016-20201 • $1.0 billion of regional multi-value projects at ATXI Regional • $2.0 billion of local reliability and connecting portions of regional Multi-Value Projects multi-value projects at Ameren Illinois Total Multi-Value
Slide 20: Noranda’s Impact on Ameren Expected to be Temporary
Noranda’s Impact on Ameren Expected to be Temporary • Noranda Aluminum’s Background 2016 Expected – Ameren Missouri supplied electricity to Noranda’s aluminum smelter Diluted EPS – Was Ameren Missouri’s largest customer: ~4% of revenues and ~10% of MWh sales in 2015 Impact from – Noranda’s portion o
Slide 21: Select Regulatory Matters
Select Regulatory Matters Missouri Public Service Commission • 2016 electric rate case: Docket No. ER-2016-0179 • Order granting CCN for ATXI’s Mark Twain transmission project: Docket No. EA-2015-0146 • Working case to consider policies to improve electric utility regulation: Docket No. EW-2016-0313
Slide 22: Investor Relations Calendar
Investor Relations Calendar AUGUST 2016 SEPTEMBER 2016 SUN. MON. TUES. WED. THUR. FRI. SAT. SUN. MON. TUES. WED. THUR. FRI. SAT. 1 2 3 4 5 6 1 2 3 Q2 Quiet Q2 Period, Earnings cont. Call 7 8 9 10 11 12 13 4 5 6 7 8 9 10 Barclays Power Conf. 14 15 16 17 18 19 20 11 12 13 14 15 16 17 Barclays SF Mini-
Slide 23: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations ALJ – Administrative Law Judge. GAAP – Generally Accepted Accounting Principles ATXI – Ameren Transmission Company of Illinois. ICC – Illinois Commerce Commission. B – Billion. MEEIA – Missouri Energy Efficiency Investment Act. CAGR – Compound annual growth rate.