Slide 1: Building a Brighter Energy Future
Building a Brighter Energy Future 2018 Results and Guidance Feb. 14, 2019
Slide 2: Cautionary Statements
Cautionary Statements Use of Non-GAAP Financial Measures In this presentation, Ameren has presented core earnings per share 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 information is included in this pres
Slide 3: Business Update
Business Update Warner Baxter Chairman, President and Chief Executive Officer, Ameren Corp.
Slide 4: Successfully Executed Our Strategic Plan in 2018
Successfully Executed Our Strategic Plan in 2018 • Delivered strong core1 earnings growth in 2018, including solid growth on weather-normalized basis – $2.3 billion capital invested for benefit of customers and communities we serve Core Diluted EPS1 – Strong operational performance delivering safe,
Slide 5: Achieved Greater Than 7% EPS CAGR From 2013-2018
Achieved Greater Than 7% EPS CAGR From 2013-2018 Invested strategically, consistent with regulatory frameworks • Ameren Transmission – Significant investment in local reliability and regional multi-value projects 2013-2018 • Ameren Illinois Natural Gas Regulated Infrastructure – Significant investme
Slide 6: Expect to Deliver 6% to 8% EPS CAGR From 2018-2023
Expect to Deliver 6% to 8% EPS CAGR From 2018-2023 • Expect 2019 EPS in a range of $3.15 to $3.35 – Midpoint represents nearly 7 percent EPS growth compared to 2018 2018 Normalized Core EPS1 vs. weather-normalized core EPS1 2019E and Five-Year EPS Growth • Expect 6% to 8% EPS CAGR from 2018-2023 202
Slide 7: Executing Our Strategy in 2019 and Beyond
Executing Our Strategy in 2019 and Beyond Investing in and operating our utilities in a manner consistent with existing regulatory frameworks • Constructive frameworks for investment in all business segments 2018-2023E Regulated Five-Year Rate • Expect ~8% rate base CAGR from 2018-2023 Infrastructur
Slide 8: Ameren Missouri Smart Energy Plan Filed With MoPSC
Ameren Missouri Smart Energy Plan Filed With MoPSC on Feb. 14 Investing in and operating our utilities in a manner consistent with existing regulatory frameworks • Five-year $6.3 billion investment plan1 with focus on modernizing energy grid and adding renewables – Automate the electric distribution
Slide 9: Executing Our Strategy – Ameren Missouri Wind Investment
Executing Our Strategy – Ameren Missouri Wind Investment Creating and capitalizing on opportunities for investment for the benefit of our customers and shareholders • Pursuing ownership of at least 700 MWs of wind generation by 2020 with multiple developers to comply with Missouri’s RES – Entered bu
Slide 10: 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 and shareholders • Expect energy grid will be increasingly more important and valuable to our customers, communities and shareholders 2018-2023E Regulated
Slide 11: Our Value Proposition to Investors and Customers
Our Value Proposition to Investors and Customers Strong long-term Attractive Attractive total growth outlook dividend return potential • Expect 6% to 8% EPS CAGR from • Annualized equivalent dividend rate • Track record of delivering strong 2018-20231 of $1.90 per share provides results attractive 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) Year-Ended Dec. 31, 2017 2018 GAAP Earnings / Diluted EPS $523 $2.14 $815 $3.32 Charge for revaluation of deferred taxes resulting from increased Illinois 22 0.09 — — state income tax rate Less: Federal income tax benefit (
Slide 14: 2018 Earnings Analysis
2018 Earnings Analysis1 Key Earnings Variance Drivers ↑ Ameren Missouri earnings — Higher electric retail sales primarily due to warmer summer and colder winter temperatures: ~+$0.42 • Weather vs. prior year: ~+$0.38; vs. normal ~+$0.32 Core Diluted EPS2 — Higher electric rates effective Apr. 1, 201
Slide 15: Strong Rate Base Growth in All Regulatory Jurisdictions
Strong Rate Base Growth in All Regulatory Jurisdictions ~$13.3 Billion of Regulated Infrastructure Investment 2018 to 2023E Regulated Five-Year Rate 2019-2023 Infrastructure Rate Base2 Base CAGR ($ billions) Ameren Illinois Ameren Illinois Electric Distribution Natural Gas $22.7 ~8% $2.5B $1.6B ~8%
Slide 16: Expected 2019-2023 Funding Plan
Expected 2019-2023 Funding Plan • Comfortable with capitalization levels at each legal entity – Expect capitalization levels over the five-year period to remain in-line with those at the end of 2018 • Cash from Operations – Return of capital through depreciation in rates – Return on equity-financed
Slide 17: 2019 Earnings Guidance: Key Drivers and Assumptions
2019 Earnings Guidance: Key Drivers and Assumptions Midpoint represents nearly 7% EPS growth vs. 2018 weather-normalized core EPS ↓ Return to normal weather: ~$(0.32) ↓ Callaway refueling and maintenance outage scheduled for spring 2019: ~$(0.09) ↓ Higher depreciation expense, net of PISA benefit: ~
Slide 18: 2019 Earnings Guidance: Key Drivers and Assumptions
2019 Earnings Guidance: Key Drivers and Assumptions Midpoint represents nearly 7% EPS growth vs. 2018 weather-normalized core EPS ↑ Higher average estimated rate base: ~$3.21 billion compared to ~$2.91 billion in Ameren 2018 reflecting infrastructure investments • FERC decisions in MISO ROE complain
Slide 19: Select Regulatory Matters – Ameren Transmission
Select Regulatory Matters – Ameren Transmission Base Allowed ROE • Second complaint case to reduce MISO’s FERC-allowed base ROE – In June 2016, ALJ recommended a 9.70% base ROE • If approved by FERC, would result in total allowed ROE of 10.20% vs. current 10.82%; both include 50 basis point adder fo
Slide 20: 2019 Cash Flow Guidance
2019 Cash Flow Guidance 2019 ($ millions) Guidance 2019 Capital Expenditures Net cash provided by operating activities $ 1,970 ($ millions) Capital expenditures (2,430) $2,430 Other cash used in investing activities (20) $155 $360 Dividends: common and preferred1 (470) $350 Free cash flow ~$ (950) $
Slide 21: Summary
Summary Expect to deliver strong earnings growth in 2019 with guidance in a range of $3.15 to $3.35 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 2018 through 20231 • Expect ~
Slide 22: Appendix
RZ “7 Ameren
Slide 23: Four Constructive Regulatory Frameworks
Four Constructive Regulatory Frameworks FERC-regulated: Formula ratemaking • Allowed ROE is 10.82%1, 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 • Constructive rate treatm
Slide 24: Select Regulatory Matters – Ameren Illinois
Select Regulatory Matters – Ameren Illinois Ameren Illinois Electric Distribution • In Nov. 2018, ICC approved a $72 million net annual increase in formula rates effective Jan. 2019, consistent with Ameren Illinois’ request – All-in 2019 residential electric rates, for customers taking delivery and
Slide 25: Ameren Organizational Structure and External Debt Balances
Ameren Organizational Structure and External Debt Balances1 $ in millions as of Dec. 31, 2018 All Moody’s outlooks “Stable”; all S&P outlooks “Stable” Ameren Corporation (Baa1/BBB+) Sr. Unsecured (Baa1/BBB) - $700 Commercial Paper (P-2/A-2) - $470 Ameren Missouri Ameren Illinois ATXI (Baa1/BBB+) (A3
Slide 26: Investor Relations Calendar
Investor Relations Calendar FEBRUARY 2019 MARCH 2019 SUN. MON. TUES. WED. THUR. FRI. SAT. SUN. MON. TUES. WED. THUR. FRI. SAT. 1 2 1 2 Q4 Quiet Period, cont’d 3 4 5 6 7 8 9 3 4 5 6 7 8 9 Morgan BAML Stanley Power Utilities Utilities Conf. Conf. 10 11 12 13 14 15 16 10 11 12 13 14 15 16 Q4 2018 Earni
Slide 27: Select Regulatory Matters
Select Regulatory Matters Missouri Public Service Commission • Senate Bill 564: http://www.senate.mo.gov/18info/pdf-bill/perf/SB564.pdf • Order approving Renewable Choice Program agreement: Docket No. ET-2018-0063 • Order approving CCN for 400-MW wind facility and use of RESRAM: Docket No. EA-2018-0
Slide 28: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations AFUDC – Allowance for funds used during construction MEEIA – Missouri Energy Efficiency Investment Act ALJ – Administrative Law Judge MISO – Midcontinent Independent System Operator, Inc. ATXI – Ameren Transmission Company of Illinois MoPSC – Missouri Public Servi