Slide 1: Lead Today. Transform Tomorrow.
Lead Today. Transform Tomorrow. 2016 Earnings Results and 2017 Guidance February 16, 2017
Slide 2: Cautionary Statements
Cautionary Statements Use of Non-GAAP Financial Measures In this presentation, Ameren has presented core and weather-normalized earnings and free cash flow, which are non-GAAP measures and may not be comparable to those of other companies. A reconciliation of GAAP to non-GAAP earnings is included ei
Slide 3: Business Update
Business Update Warner Baxter Chairman, President and Chief Executive Officer, Ameren Corp.
Slide 4: Executing Our Strategy in 2016
Executing Our Strategy in 2016 • Delivered solid earnings growth in 2016 Core1 Diluted EPS • Investing in and operating our utilities in a manner consistent with 2015 vs. 2016 existing regulatory frameworks ─ Strategic capital allocation and disciplined cost management $2.68 ─ Invested over $1.3 bil
Slide 5: Earnings Guidance
Earnings Guidance 2017 Diluted EPS Guidance Range of Weather-normalized • Expect strong weather-normalized EPS growth $2.65 Diluted EPS to $2.85 in 2017 2016 vs. 2017E ─ ~6.5% based on 2017 guidance range midpoint 2 $2.85 $2.58 • Remain on track to deliver strong long-term earnings $2.65 growth in t
Slide 6: Executing Our Strategy in 2017 and Beyond
Executing Our Strategy in 2017 and Beyond 2016 to 2021E Regulated 5-Yr Rate Investing in and operating our utilities in a Infrastructure Rate Base1 Base CAGR manner consistent with existing regulatory ($ Billions) frameworks % of • Expect strong 6% compound annual rate +6% $17.9 Total 6% CAGR base g
Slide 7: Executing Our Strategy in 2017 and Beyond
Executing Our Strategy in 2017 and Beyond Investing in and operating our utilities in a manner consistent with existing regulatory frameworks • Missouri Electric Rate Review Update ─ Major parties recently reached agreement in principle on all issues • These parties are Ameren Missouri, MoPSC Staff,
Slide 8: Executing Our Strategy in 2017 and Beyond
Executing Our Strategy in 2017 and Beyond Enhancing regulatory frameworks and advocating for responsible energy and economic policies • Proposed Missouri Legislation: The Missouri Economic Development and Infrastructure Investment Act (SB 190)1 approved by Senate Commerce Committee ─ Deferral betwee
Slide 9: Executing Our Strategy in 2017 and Beyond
Executing Our Strategy in 2017 and Beyond Enhancing regulatory frameworks and advocating for responsible energy and economic policies • Potential Federal Corporate Income Tax Reform ─ Ameren supports thoughtful, comprehensive tax reform • Lowers corporate tax rates • Drives economic growth and job c
Slide 10: Executing Our Strategy in 2017 and Beyond
Executing Our Strategy in 2017 and Beyond 2016 to 2021E Regulated Creating and capitalizing on opportunities for investment for the benefit Infrastructure Rate Base1 of our customers and shareholders • Expect energy grid will be increasingly more important and valuable 100% to our customers, communi
Slide 11: Our Value Proposition to Investors and Customers
Our Value Proposition to Investors and Customers Strong Attractive long-term growth Attractive total return outlook dividend potential • Continue to expect 5% to 8% • Annualized equivalent dividend • Attractive earnings growth compound annual EPS growth rate of $1.76 per share provides outlook and y
Slide 12: Financial Update
Financial Update Marty Lyons Executive Vice President and Chief Financial Officer, Ameren Corp.
Slide 13: GAAP to Core Earnings Reconciliation
GAAP to Core Earnings Reconciliation (In millions, except per share amounts) 2015 2016 GAAP Earnings / Diluted EPS $ 630 $ 2.59 $ 653 $ 2.68 Results from discontinued operations Operating income before income tax (1) (0.01) — — Income tax benefit (50) (0.20) — — Income from discontinued operations,
Slide 14: 2016 Earnings Analysis
2016 Earnings Analysis Core1 Diluted EPS 2015 vs. 2016 Key Core1 Earnings Variance Drivers: Higher Ameren Transmission earnings ─ Increased investments in infrastructure made under modern, constructive regulatory $2.56 $2.68 framework and higher allowed ROE: $0.19 $0.34 $0.48 Higher Ameren Illinois
Slide 15: 2017 Earnings Guidance: Key Drivers and Assumptions
2017 Earnings Guidance: Key Drivers and Assumptions Regulated by MoPSC Increased electric service rates consistent with agreement in principle ─ Reflects infrastructure investments in service at Dec. 31, 2016, as well as more recent sales and cost levels Ameren ─ Removes negative effect of lower sal
Slide 16: 2017 Earnings Guidance: Key Drivers and Assumptions (cont.)
2017 Earnings Guidance: Key Drivers and Assumptions (cont.) Regulated by ICC Higher weather-normalized electric delivery earnings reflecting infrastructure Ameren Illinois investments made under formula ratemaking ─ Year-end estimated rate base: ~$2.81 billion compared to $2.6 billion in 2016 Electr
Slide 17: 2017 Cash Flow Guidance
2017 Cash Flow Guidance 2017 Capital Expenditures 2017 ($ Millions) ($ millions) Guidance $2,220 Net cash provided by operating activities $ 1,990 $325 $375 Capital expenditures (2,220) 65% $255 Other cash used in investing activities (35) $480 Dividends: common and preferred1 (435) $785 35% Free ca
Slide 18: 2017-2021 Planned Capital Expenditures & Expected Funding
2017-2021 Planned Capital Expenditures & Expected Funding $10.8 Billion of Regulated Expected Funding1 Infrastructure Investment2 • Return of capital through depreciation in rates 2017-2021 • Retained earnings Ameren Illinois Natural Gas • ~$1.9-$2.0 billion of income tax deferrals and tax assets Am
Slide 19: Federal Income Tax Reform
Federal Income Tax Reform • Tax reform proposals not fully developed but several pillars have been discussed Ameren’s current assessment of customer rate, Ameren well-positioned to maintain strong growth outlook: earnings and cash flow implications stem from – Lower tax rate benefits customer rates
Slide 20: Summary
Summary Delivered solid earnings growth in 2016 Successfully executing our strategy Strong long-term growth outlook • Affirm 5% to 8% compound annual EPS growth from 2016 through 20201 • Expect 6% compound annual rate base growth from 2016 through 2021 ─ Sustainable infrastructure investment pipelin
Slide 21: Appendix
Appendix
Slide 22: Company Description Ameren's Segments
Company Description Ameren’s Segments 2.4M electric Ameren – Ameren Corporation and its subsidiaries on a Fully rate-regulated customers consolidated basis. electric and gas utility Ameren Parent and Other – includes financing activities or liquidity arrangements of Ameren Corporation, as well as it
Slide 23: Solid Operating Performance
Solid Operating Performance Electric rates Safety Delivery system reliability Generating plant are low has improved has improved performance remains strong Average Residential Safety Distribution System Baseload Energy Electricity Prices1 Performance Reliability2 Center Performance Recordable Lost W
Slide 24: Our Regulatory Frameworks
Our Regulatory Frameworks FERC-regulated: Formula ratemaking; nearly eliminates regulatory lag • Allowed ROE is 10.82%, which includes the MISO participation adder of 50 basis points Ameren • Rates reset each Jan. 1 based on forward-looking calculation with annual reconciliation Transmission • Const
Slide 25: Significant FERC-Regulated Transmission Investment
Significant FERC-Regulated Transmission Investment • Planned $2.8 billion investment – 2017-2021 Regional Multi-Value Projects ─ $0.6 billion of regional multi-value projects at ATXI ─ $2.2 billion of local reliability and connecting portions of regional multi-value projects at Ameren Illinois • Tot
Slide 26: FERC MISO Complaint Cases Regarding MISO base ROE
FERC MISO Complaint Cases Regarding MISO base ROE • Cases sought to reduce Ameren Illinois’ and ATXI’s transmission service allowed base ROE ─ In first case, FERC final order issued Sept. 28, 2016 confirmed ALJ initial recommendation of a 10.32% base ROE • Maximum ROE including incentives not to exc
Slide 27: Illinois Energy Legislation
Illinois Energy Legislation • Future Energy Jobs Act (Senate Bill 2814) enacted in Dec. 2016; effective June 2017 • Enhances and extends Ameren Illinois’ Electric Distribution regulatory framework ─ Extends constructive formula ratemaking through 2022 • Enables continuation of Ameren Illinois’ stron
Slide 28: Select Regulatory and Legislative Matters
Select Regulatory and Legislative Matters Missouri General Assembly / Missouri Public Service Commission • Senate Bills 190, 214 and 215: http://www.senate.mo.gov/17info/BTS_Web/BillList.aspx?SessionType=R • House Bill 628: http://www.house.mo.gov/billlist.aspx • Report of Senate Interim Committee o
Slide 29: Investor Relations Calendar
Investor Relations Calendar MARCH 2017 APRIL 2017 MON. TUES. WED. THUR. FRI. SAT. SUN. MON. TUES. WED. THUR. FRI. SAT. 1 2 3 4 1 Morgan UBS Stanley Conf. Conf. 5 6 7 8 9 10 11 2 3 4 5 6 7 8 12 13 14 15 16 17 18 9 10 11 12 13 14 15 Barclays Q1 Quiet Chicago Period Conf. 19 20 21 22 23 24 25 16 17 18
Slide 30: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations ALJ – Administrative Law Judge MIEC– Missouri Industrial Energy Consumers ATXI – Ameren Transmission Company of Illinois MISO – Midcontinent Independent System Operator, Inc. B – Billion MoPSC – Missouri Public Service Commission CAGR – Compound annual growth rate