Slide 1: Customers at the Center
Customers at the Center Second Quarter 2020 Earnings August 7, 2020
Slide 2: Cautionary Statements
Cautionary Statements Forward-looking Statements Statements in this presentation not based on historical facts are considered "forward-looking" and, accordingly, involve risks and uncertainties that could cause actual results to differ materially from those discussed. Although such forward-looking s
Slide 3: Business Update
Business Update Warner Baxter Chairman, President and Chief Executive Officer, Ameren Corp.
Slide 4: COVID-19 Update
COVID-19 Update Significant actions taken to address COVID-19 • Focused on safety of co-workers, customers and communities while delivering safe, reliable and affordable service – Continued safe execution of work plans in Missouri and Illinois while maintaining robust safety protocols – Provided ~$1
Slide 5: Earnings and Guidance Summary
Earnings and Guidance Summary • Key Q2 earnings variance drivers ↑ Earnings on increased infrastructure investments across all Diluted EPS business segments 2019 vs. 2020 ↑ Lower Ameren Missouri operations and maintenance expenses due to the absence of a Callaway refueling and maintenance $1.57 outa
Slide 6: Executing Our Strategy
Executing Our Strategy Our Strategic Plan • Investing in and operating our utilities in a manner consistent with existing regulatory frameworks Capital Expenditures • Enhancing regulatory frameworks and advocating for responsible energy and YTD June 2019 vs. YTD June 2020 economic policies ($ millio
Slide 7: Executing Our Strategy – Regulatory and Legislative Initiatives
Executing Our Strategy – Regulatory and Legislative Initiatives Enhancing regulatory frameworks and advocating for responsible energy and economic policies • In May 2020, FERC issued order on rehearing of its Nov. 2019 order related to first and second MISO base ROE complaint cases – Established new
Slide 8: Executing Our Strategy – Renewable Energy Investments
Executing Our Strategy – Renewable Energy Investments Creating and capitalizing on opportunities for investment for the benefit of our customers, shareholders and the environment • Build-transfer agreements for 700 MW of wind generation in Missouri, ~$1.2 billion investment, to comply with Missouri’
Slide 9: Robust Investment Opportunities Across All Businesses Over Next Decade
Robust Investment Opportunities Across All Businesses Over Next Decade1 Modernizing the grid and investing in cleaner generation for the long-term benefit of customers, shareholders and the environment Investment Plan 2020-2024 Investment Opportunities 2025-2029 $36B+ ($ billions) $20+ Strong Pipeli
Slide 10: Long-Term Total Return Outlook
Long-Term Total Return Outlook • Remain on track to deliver strong long-term earnings growth 2019 to 2024E Regulated Five-Year Rate Infrastructure Rate Base1,2 Base CAGR1 – Expect 6% to 8% EPS CAGR from 2020-20241 • Using 2020 EPS guidance range midpoint of $3.50 as a base ($ billions) – Expect ~8.7
Slide 11: Financial Update
Financial Update Michael Moehn Executive Vice President and Chief Financial Officer, Ameren Corp.
Slide 12: 2020 Second Quarter Earnings Analysis
2020 Second Quarter Earnings Analysis Key Earnings Variance Drivers ↑ Ameren Missouri earnings — Absence of Callaway refueling and maintenance outage: +$0.08 Diluted EPS — Lower other operations and maintenance expenses: +$0.07 Q2 2019 vs. Q2 2020 • Cash surrender value of COLI due to favorable mark
Slide 13: 2020 EPS Guidance and Select Balance of the Year Considerations
2020 EPS Guidance and Select Balance of the Year Considerations • Reaffirm 2020 diluted EPS guidance range of $3.40 to $3.60 • Select considerations for Q3-Q4 2020 EPS compared to Q3-Q4 2019 EPS – Ameren Missouri expected lower sales driven by COVID-19: ~$(0.05) 2020E Diluted EPS Ameren Missouri Wea
Slide 14: Select Regulatory Matters – Ameren Illinois
Select Regulatory Matters – Ameren Illinois Electric Distribution • Requesting $45 million base rate decrease from ICC in annual update – In June, ICC Staff recommended $53 million base rate decrease – Expect ICC decision by Dec. 2020, with new rates effective in Jan. 2021 – If approved as requested
Slide 15: Summary
Summary Expect to deliver strong earnings growth in 2020 with guidance in a range of $3.40 to $3.60 per diluted share Successfully executing our strategy; well-positioned for future growth Strong long-term growth outlook • Expect 6% to 8% compound annual EPS growth from 2020-20241,2 • Expect ~8.7% c
Slide 16: APPENDIX
APPENDIX
Slide 17: Four Constructive Regulatory Frameworks
Four Constructive Regulatory Frameworks FERC-regulated: Formula ratemaking Ameren • Allowed ROE is 10.52%, includes MISO participation adder of 50 basis points; ~54% average equity ratio Transmission • Rates reset each Jan. 1 based on forward-looking calculation with annual reconciliation ICC-regula
Slide 18: Regulatory Mechanisms that Address COVID-19 Uncertainties
Regulatory Mechanisms that Address COVID-19 Uncertainties % 2019 Regulated Sales Bad Debt Pension2 EPS1 • ~97% of margins related to electric • Pension and OPEB tracker in • No electric revenue decoupling • No tracker or rider electric business • Electric margins are ~50% res., ~40% com., • Ability
Slide 19: Executing Our Strategy – Regulatory and Legislative Initiatives, Cont’d
Executing Our Strategy – Regulatory and Legislative Initiatives, Cont’d Enhancing regulatory frameworks and advocating for responsible energy and economic policies Ameren Illinois Electric Distribution • Downstate Clean Energy Affordability Act1 (HB 5673/SB 3977) introduced in Feb. 2020 – Allows uti
Slide 20: 2020 Earnings Analysis for Six Months Ended June 30
2020 Earnings Analysis for Six Months Ended June 30 Key Earnings Variance Drivers ↑ Ameren Transmission earnings — Increased infrastructure investments Diluted EPS — Impact of FERC order addressing MISO allowed base ROE: +$0.04 YTD June 2019 vs. YTD June 2020 ↑ Ameren Illinois Natural Gas earnings —
Slide 21: Financing and Liquidity Update
Ameren Credit Ratings Financing and Liquidity Update and External Debt Balances1 Debt Financing • On Mar. 20, Ameren Missouri issued $465 million of 2.95% As of June 30, 2020 $ in millions Moody's S&P first mortgage bonds due 2030 Ameren Corporation (Issuer: Baa1/BBB+) – Proceeds used to repay short
Slide 22: Executing Our Strategy – Investing in the Energy Grid
Executing Our Strategy – Investing in the Energy Grid Creating and capitalizing on opportunities for investment for the benefit of our customers, shareholders and environment • Investing to modernize energy grid – Provide a more safe, reliable, resilient and secure energy grid – Enable two-way energ
Slide 23: Building a Brighter and Cleaner Energy Future
Building a Brighter and Cleaner Energy Future Innovative Programs to Meet Customer Needs and Rising Expectations Utility-owned solar Subscription program generation facilities for MO available to MO residential non-residential customer Neighborhood Community and small business parking lots, open lan
Slide 24: ESG: Environmental Focus – Achieving Balance Responsibly
ESG: Environmental Focus – Achieving Balance Responsibly • Transitioning Ameren Missouri’s generation to a cleaner, more diverse portfolio in a responsible fashion – 2017 preferred plan1 includes addition of 700 MW of wind generation by Ameren’s Planned CO2 Emissions 2020 and 100 MW of solar generat
Slide 25: ESG: Social and Governance Focus – Culture of Sustainability
ESG: Social and Governance Focus – Culture of Sustainability • Diverse Board of Directors focused on strong accountability and governance Hyperlinked below – Board committed to maintaining a balance of perspectives, qualifications, qualities and skills • ~55% women or minorities; Average tenure of ~
Slide 26: Investor Relations Calendar
Investor Relations Calendar AUGUST 2020 SEPTEMBER/EARLY OCTOBER 2020 SUN. MON. TUES. WED. THUR. FRI. SAT. SUN. MON. TUES. WED. THUR. FRI. SAT. 1 1 2 3 4 5 Q2 Quiet BMO Period, Virtual Cont’d Conf. 2 3 4 5 6 7 8 6 7 8 9 10 11 12 Q2 2020 Barclays Virtual Earnings Virtual Fireside Call Power Chat with
Slide 27: Select Regulatory Matters
Select Regulatory Matters Missouri Public Service Commission • Order approving electric rate review settlement: Docket No. ER-2019-0335 • Smart Energy Plan filing: Docket No. EO-2019-0044 • Order approving request regarding Callaway Energy Center outage expenses: Docket No. EU-2020-0114 • Order appr
Slide 28: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations AFUDC – Allowance for funds used during construction ISRS – Infrastructure System Replacement Surcharge ATXI – Ameren Transmission Company of Illinois M – Million B – Billion MEEIA – Missouri Energy Efficiency Investment Act bps – Basis points MISO – Midcontinent