Edison International · NYSE:EIX
Edison International — Q1 2015 Earnings Presentation
15 slides from Edison International's earnings presentation, Apr 28, 2015
Slide 1: First Quarter 2015 Financial Results
April 28, 2015 First Quarter 2015 Financial Results
Slide 2: Forward-Looking Statements
April 28, 2015 1 Forward-Looking Statements Statements contained in this presentation about future performance, including, without limitation, operating results, asset and rate base growth, capital expenditures, financial outlook, and other statements that are not purely historical, are forward-look
Slide 3: First Quarter Earnings Summary
April 28, 2015 2 First Quarter Earnings Summary Q1 2015 Q1 2014 Variance Core EPS1 SCE $0.93 $0.93 $ – EIX Parent & Other (0.03) (0.03) – Core EPS1 $0.90 $0.90 $ - Non-Core Items2 SCE $ – $(0.29) $0.29 EIX Parent & Other 0.02 – 0.02 Discontinued Operations – (0.07) 0.07 Total Non-Core $0.02 $(0.36)
Slide 4: SCE Capital Expenditures Forecast
April 28, 2015 3 SCE Capital Expenditures Forecast • Request case incorporates 2015 GRC January update • Net $325 million 2016-2017 decrease from prior forecast primarily for Coolwater-Lugo project suspension and other FERC project adjustments • Growth driven by infrastructure replacement, reliabili
Slide 5: SCE Rate Base Forecast
April 28, 2015 4 SCE Rate Base Forecast • Incorporates 2015 GRC January update • Rate base reduced due to Coolwater- Lugo transmission project request for suspension • FERC rate base includes Construction Work in Progress (CWIP) and is approximately 23% of SCE’s rate base forecast by 2017 • Excludes
Slide 6: 2015 Financial Assumptions
April 28, 2015 5 2015 Financial Assumptions ($ billions) SCE Capital Expenditures SCE Authorized Cost of Capital Other SCE Items CPUC Return on Equity 10.45% CPUC Capital Structure 48% equity 43% debt 9% preferred FERC Return on Equity (Inc. FERC Incentives) 10.45% EIX will provide 2015 earnings gui
Slide 7: EIX Shareholder Value
April 28, 2015 6 EIX Shareholder Value Sustainable Earnings Growth Positioning for Transformative Change Financial Discipline Rate Base and Core Earnings Growth: • 9% 5-year SCE rate base CAGR (2009 – 2014) • 12% Core SCE EPS growth (2009 – 2014) • Consistent 7 – 9% rate base growth through 2017 Con
Slide 8: Appendix
April 28, 2015 7 Appendix
Slide 9: SCE Customer Demand Trends
April 28, 2015 8 SCE Customer Demand Trends Kilowatt-Hour Sales (millions of kWh) Residential Commercial Industrial Public authorities Agricultural and other Subtotal Resale Total Kilowatt-Hour Sales Customers Residential Commercial Industrial Public authorities Agricultural Railroads and railways I
Slide 10: SCE 2015 CPUC General Rate Case
April 28, 2015 9 SCE 2015 CPUC General Rate Case • November 2013, 2015 GRC Application A.13-11-003 sets 2015 – 2017 base revenue requirement – Includes operating costs and CPUC jurisdictional capital – Excludes fuel and purchased power (and other utility cost-recovery activities), cost of capital, a
Slide 11: CPUC and FERC Cost of Capital
April 28, 2015 10 CPUC and FERC Cost of Capital • CPUC – 48% common equity and Return on Equity (ROE) adjustment mechanism has been extended through 2016 – Weighted average authorized cost of capital – 7.90% – ROE adjustment based on 12-month average of Moody’s Baa utility bond rates, measured from
Slide 12: Earnings Non-GAAP Reconciliations
April 28, 2015 11 Earnings Non-GAAP Reconciliations ($ millions) Reconciliation of EIX Core Earnings to EIX GAAP Earnings Earnings Attributable to Edison International Core Earnings SCE EIX Parent & Other Core Earnings Non-Core Items SCE EIX Parent & Other Discontinued operations Total Non-Core Basi
Slide 13: SCE Core EPS Non-GAAP Reconciliations
April 28, 2015 12 SCE Core EPS Non-GAAP Reconciliations Earnings Per Share Attributable to SCE Core EPS Non-Core Items Tax settlement Health care legislation Regulatory and tax items Impairment and other charges Total Non-Core Items Basic EPS Reconciliation of SCE Core Earnings Per Share to SCE Basi
Slide 14: SCE Results of Operations – Full-Year 2014
April 28, 2015 13 $6,602 — 2,348 1,622 307 575 4,852 1,750 (519) 48 1,279 279 1,000 100 $900 $5,960 4,891 1,068 — — — 5,959 1 (1) — — — — — $— $6,831 — 2,106 1,720 318 163 4,307 2,524 (528) 43 2,039 474 1,565 112 $1,453 $6,549 5,593 951 — — — 6,544 5 (5) — — — — — $— $13,380 5,593 3,057 1,720 318 16
Slide 15: Use of Non-GAAP Financial Measures
April 28, 2015 14 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. Core earnings are