Edison International · NYSE:EIX
Edison International — Q1 2022 Earnings Presentation
20 slides from Edison International's earnings presentation, May 3, 2022
Slide 1: First Quarter 2022 Financial Results
First Quarter 2022 Financial Results May 3, 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements contained in this presentation about future performance, including, without limitation, operating results, capital expenditures, rate base growth, dividend policy, financial outlook, and other statements that are not purely historical, are forward-looking statem
Slide 3: Edison International First Quarter Update
Edison International First Quarter Update Q1 2022 core EPS growth driven primarily by GAAP EPS: $0.22 adoption of 2021 GRC decision in Q3 2021 Core EPS1: $1.07 $4.40–4.70 EIX affirms 2022 EPS guidance 2022 Core EPS1 In Q1, SCE resolved over $700 million of claims Over 80% of best estimate for 2017/2
Slide 4: SCE's execution of its wildfire mitigation strategy is reducing risk of wildfires
SCE’s execution of its wildfire mitigation strategy is reducing risk of wildfires associated with utility infrastructure SCE estimates its wildfire mitigation and PSPS measures have reduced the risk of damage from catastrophic wildfires by 65% to 70%, relative to pre-2018 levels1,2 Covered conductor
Slide 5: 2017/2018 Wildfire/Mudslide Events Update: >80% of best estimate resolved
2017/2018 Wildfire/Mudslide Events Update: >80% of best estimate resolved. Anticipate cost recovery filing by late 2023 SCE continues to make substantial …and SCE will seek recovery at the CPUC for prudently- progress resolving claims1… incurred, actual losses in excess of insurance2 $ in Billions,
Slide 6: SCE requested a 10.53% ROE for 2023
SCE requested a 10.53% ROE for 2023. Also awaiting result for 2022 cost of capital In April, SCE filed application to establish SCE’s requested ROE balances reasonable 2023 cost of capital and reset cost of capital returns with affordability for customers CPUC Return on Equity (ROE) mechanism for th
Slide 7: First Quarter Earnings Summary
First Quarter Earnings Summary Q1 2022 Q1 2021 Variance Key SCE EPS Drivers2 Higher revenue $ 0.90 Basic Earnings Per Share (EPS) CPUC revenue - GRC authorized 0.35 SCE $ 0.38 $ 0.78 $ (0.40) CPUC revenue - Other 3,4 0.51 FERC and other operating revenue 0.04 EIX Parent & Other (0.16) (0.10) (0.06)
Slide 8: SCE has significant capital expenditure opportunities driven by grid safety and reliability
SCE has significant capital expenditure opportunities driven by investments in the safety and reliability of the grid Capital deployment expected to increase in future GRC and Total 2021–2025 capital plan of other applications1 $27–30 billion driven by Capital Expenditures, $ in Billions investments
Slide 9: 2021 GRC track 1 decision provides rate base visibility through 2023
2021 GRC track 1 decision provides rate base visibility through 2023; future applications expected to extend growth From a 2021 base, rate base growth forecast of 7–9% Forecast includes recovery of through 2025, reflecting future incremental investment utility-owned storage for Rate Base1, $ in Bill
Slide 10: EIX affirms 2022 core EPS guidance of $4.40–4.70
EIX affirms 2022 core EPS guidance of $4.40–4.70 EIX 2022 Core Earnings Per Share Guidance Range Key components of variances from Building from SCE Rate Base EPS SCE rate base EPS1 YTD 2022 Rate Base EPS Recorded1 Guidance1 Recording at current cost of capital pending 2022 cost of capital decision S
Slide 11: 2022 EIX Core Earnings Guidance Assumptions
2022 EIX Core Earnings Guidance Assumptions 2022 Assumption Additional Notes CPUC Rate Base ($ in Billions) $31.3 • Assumes CSRP track 1 decision in 2022. Decision delay would defer ~$55 million earnings to 2023 Return on Equity (ROE) 10.30% • ROE sensitivity: 4 cents EPS for 10bps change in ROE Equ
Slide 12: EIX has double-digit total return potential, supported by clean energy transition
EIX has double-digit total return potential, supported by leadership role in clean energy transition 5–7% core EPS CAGR1 Underpinned by strong rate base growth of ~7–9% 2021 to 2025 $27–30 billion 2021–2025 capital program ~4% 18 consecutive years of dividend growth current dividend yield2 Target di
Slide 13: Appendix
Appendix
Slide 14: Cash flow from memo account recovery and securitization strengthens balance sheet
Cash flow from memo account recovery and securitization strengthens our balance sheet and credit metrics GRC, Uncollectibles, Wildfire-related, and Wildfire Insurance Applications $ in Millions Approved Applications Balance @ Recovery Remaining Rate Recovery by Year Application / Account Mar. 31 Thr
Slide 15: EIX parent projects total 2022 financing needs of $1.2 billion
EIX parent projects total 2022 financing needs of $1.2 billion, including $300–400 million equity content Use of Proceeds $ in Millions 2022 EIX Financing Plan1 $1,200 Expect to issue securities with $300–400 million of equity content (consistent with prior disclosure)2 in combination of: $500 – Pot
Slide 16: EIX reaffirms 2021–2025 EPS growth rate target
EIX reaffirms 2021–2025 EPS growth rate target, which would result in 2025 EPS of $5.50–5.90 Earnings progression expected to continue to 2025 2025 Core EPS Components2 Core Earnings per Share Core Earnings per Share Approximate 5–7% Ranges2 2021–’25 CAGR1 5.50–5.90 2025 Rate Base EPS $6.45–6.90 • A
Slide 17: Earnings Non-GAAP Reconciliations
Earnings Non-GAAP Reconciliations Reconciliation of EIX GAAP Earnings to EIX Core Earnings Earnings (Losses) Attributable to Edison International, $ in Millions1 Q1 2022 Q1 2021 SCE $ 147 $ 296 EIX Parent & Other (63) (37) Basic Earnings $ 84 $ 259 Non-Core Items SCE 2017/2018 Wildfire/Mudslide Even
Slide 18: EIX Core EPS Non-GAAP Reconciliations
EIX Core EPS Non-GAAP Reconciliations Reconciliation of EIX Basic Earnings Per Share to EIX Core Earnings Per Share EPS Attributable to Edison International1 Q1 2022 Q1 2021 Basic EPS $ 0.22 $ 0.68 Non-Core Items SCE 2017/2018 Wildfire/Mudslide Events claims and expenses, net of recoveries (0.75) (0
Slide 19: Earnings Per Share Non-GAAP Reconciliations
Earnings Per Share Non-GAAP Reconciliations Reconciliation of EIX Basic Earnings Per Share Guidance to EIX Core Earnings Per Share Guidance1 2022 EPS Attributable to Edison International Low High Basic EIX EPS $3.55 $3.85 Total Non-Core Items2 (0.85) (0.85) Core EIX EPS $4.40 $4.70 1. EPS is calcula
Slide 20: Use of Non-GAAP Financial Measures
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 (losses) internally for financial planning and for analysis of performance. Core earnings (losses) are