Ameren Corporation · NYSE:AEE
Ameren — Q1 2022 Earnings Presentation
36 slides from Ameren's earnings presentation, May 6, 2022
Slide 1: Transforming For Our Future
Transforming For Our Future First Quarter 2022 Earnings May 6, 2022
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 Marty Lyons President and Chief Executive Officer, Ameren Corp. Ameren Missouri’s 400 MW High Prairie Renewable Energy Center in service Dec. 2020
Slide 4: Earnings and Guidance Summary
Earnings and Guidance Summary • Remain focused on safety and executing strategic plan • Key Q1 earnings variance drivers Diluted EPS ↑ Earnings on increased infrastructure investments across all business Q1 2021 vs. Q1 2022 segments ↑ Higher Ameren Missouri electric retail sales primarily driven by
Slide 5: Our Strategic Plan
Our Strategic Plan • Investing in and operating our utilities in a manner consistent with existing regulatory frameworks • Enhancing regulatory frameworks and advocating for responsible energy and economic policies • Creating and capitalizing on opportunities for investment for the benefit of our cu
Slide 6: Executing Our Strategy
Executing Our Strategy Investing in and operating our utilities in a manner consistent with existing regulatory frameworks • Significant infrastructure investments in each Capital Expenditures business segment are delivering value YTD Mar. 31, 2022 ($ millions) • Regulatory rate review filings $773
Slide 7: Illinois Energy Legislation
Illinois Energy Legislation Enhancing regulatory frameworks and advocating for responsible energy and economic policies Ameren Illinois Electric Distribution • Illinois Energy Transition Legislation (SB 2408) enacted in 2021 – Allows for electric utility to opt-in to four-year plan (Multi-Year Rate
Slide 8: Missouri Energy Legislation
Missouri Energy Legislation Enhancing regulatory frameworks and advocating for responsible energy and economic policies Ameren Missouri • On May 5, 2022, SB 745 passed General Assembly, will be sent to Governor for signature – Bill enhances current Smart Energy Plan legislation • Modifies rate cap f
Slide 9: Rush Island Energy Center
Rush Island Energy Center Ameren Missouri • In Aug. 2021, U.S. Court of Appeals affirmed the U.S. District Court’s Sep. 2019 order to install a flue gas desulfurization system at the Rush Island Energy Center – Reversed the District Court’s order to install a dry sorbent injection system at the Laba
Slide 10: MISO Long-Range Transmission Planning Roadmap
MISO Long-Range Transmission Planning Roadmap Creating and capitalizing on opportunities for investment for the benefit of our customers, shareholders and the environment Ameren Transmission • In Apr. 2021, MISO issued report outlining preliminary long- range transmission planning roadmap through 20
Slide 11: Our Sustainability Value Proposition
Our Sustainability Value Proposition ENVIRONMENTAL STEWARDSHIP SOCIAL IMPACT • Accelerating transition to a cleaner and more diverse portfolio1 • Delivered value to customers in 2021 while focused on safety ‒ Target carbon reductions from 2005 levels: 50% by 2030; 85% by 2040; net- ‒ Improved reliab
Slide 12: Long-term Total Return Outlook
Long-term Total Return Outlook • Remain on track to deliver strong long-term earnings growth – Expect 6% to 8% EPS CAGR from 2022-20261 • Using 2022 EPS guidance range midpoint of $4.05 as the base – Expect ~7% rate base CAGR from 2021-20261,2 2021-2026E Regulated Five-Year Rate • Infrastructure inv
Slide 13: Financial Update
Financial Update Michael Moehn Executive Vice President and Chief Financial Officer, Ameren Corp.
Slide 14: 2022 First Quarter Earnings Analysis – Key Drivers
2022 First Quarter Earnings Analysis – Key Drivers ↑ Ameren Missouri earnings — Higher electric retail sales: ~+$0.03 Diluted EPS • Weather vs. 2021: ~+$0.02; vs. normal ~+$0.02 Q1 2021 vs. Q1 2022 • WN sales vs. 2021 (excl. MEEIA): Res.: ~(0.5)%, Com.: ~+1.5%, Ind.: ~+0.5%, Total: ~+0.5% — Increase
Slide 15: 2022 EPS Guidance and Select Balance of the Year Considerations
2022 EPS Guidance and Select Balance of the Year Considerations • Affirm 2022 diluted EPS guidance range of $3.95 to $4.15 2022E • Select considerations for Q2-Q4 2022 EPS compared to Q2-Q4 2021 EPS Diluted EPS – Ameren Missouri return to normal weather in 2022: Q2 ~$(0.01); Q3 ~$(0.02); Q4 ~+$0.02
Slide 16: Select Regulatory Matters – Ameren Illinois
Select Regulatory Matters – Ameren Illinois Electric Distribution • In Apr. 2022, requested $83 million annual performance-based rate update from ICC; ~3.5% rate increase request1 – Expect ICC decision by Dec. 2022, with new rates effective in Jan. 2023 – Major investments included in the request •
Slide 17: Financing, Credit Ratings and External Debt Balances
Ameren Credit Ratings Financing and External Debt Balances2 Debt Financing • On Apr. 1, 2022, Ameren Missouri issued $525 million of 3.90% green first mortgage bonds due 2052 As of Mar. 31, 2022 $ in millions Moody's S&P – Proceeds to fund capital expenditures and refinance short-term debt; intend t
Slide 18: Sustainability Financing Framework and Green Bond Issuances
Sustainability Financing Framework and Green Bond Issuances • On June 2, 2021, Ameren published a Sustainability Financing Framework; one of the first utilities in the nation to do so – Framework supports Ameren’s sustainability goals and target of net-zero carbon emissions by 20501, as well as soci
Slide 19: Summary
Summary Expect to deliver strong earnings growth in 2022 with guidance in a range of $3.95 to $4.15 per diluted share Successfully executing our strategy; well-positioned for future growth • Focused on delivering a cleaner and sustainable energy future in a responsible manner Strong long-term growth
Slide 20: Appendix
APPENDIX
Slide 21: 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; ~56% average equity ratio Transmission • Rates reset each Jan. 1 based on forward-looking calculation with annual reconciliation ICC-regula
Slide 22: Our Focus on Delivering a Cleaner Energy Future Responsibly
Our Focus on Delivering a Cleaner Energy Future Responsibly1 While providing safe, reliable and affordable energy to customers • Climate risk management and mitigation – Targeting significant reductions in greenhouse gases 2 – Implementing robust customer energy efficiency programs – Investing to mo
Slide 23: Ameren Missouri Generation Transformation
Ameren Missouri Generation Transformation1 Transition to a cleaner and more diverse portfolio in a responsible fashion 2 50% CARBON EMISSIONS 85% CARBON EMISSIONS NET-ZERO CARBON REDUCTION3,4 REDUCTION3,4 EMISSIONS3,4 • Ameren Missouri filed its preferred Integrated Resource Plan with the MoPSC in S
Slide 24: 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 25: Investing in the Energy Grid
Investing in the Energy Grid • Investing to modernize energy grid, making it cleaner, safer, more reliable, resilient and secure – Expect greater transmission investments to support additional renewable generation – Provide customers with new and improved tools to manage energy usage 2021-2026E Regu
Slide 26: 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 Investment Plan 2022-20261 $45B+ ($ billions) Strong Pipeline of Regulated $17.3 Infrastructure Investments $3.5 2022-2031 $1.8 Additional Investment $3.1 Opportunities •
Slide 27: Focused on Delivering Affordable Service to Our Customers
Focused on Delivering Affordable Service to Our Customers Residential rates since key legislative or regulatory enhancements Ameren Missouri Ameren Illinois Ameren Illinois Electric1 Electric Distribution2 Natural Gas Distribution3 ¢/KWh ~0.75% ¢/KWh ~0.3% $/therm ~1.4% CAGR CAGR CAGR 12.00 2017 to
Slide 28: Delivering Strong Value to our Customers
Delivering Strong Value to our Customers Achieving top quartile performance in reliability, affordability and customer satisfaction Increased Customer Outage Improved Reliability1 Affordable Rates2 Frequency Satisfaction3 JD Power (per customer per year) +12% ¢/KWh Score +23% 1.00 Better 15 Better 7
Slide 29: FERC Regulatory Matters
FERC Regulatory Matters Enhancing regulatory frameworks and advocating for responsible energy and economic policies Ameren Transmission • In Apr. 2021, FERC issued supplemental NOPR that would remove incentive adder for utilities that have been members of an RTO for three years or more – Current all
Slide 30: MISO Long-Range Transmission Planning Roadmap
MISO Long-Range Transmission Planning Roadmap Creating and capitalizing on opportunities for investment for the benefit of our customers, shareholders and the environment Ameren Transmission • In Apr. 2021, MISO issued report outlining preliminary long- range transmission planning roadmap through 20
Slide 31: Illinois Energy Transition Legislation
Illinois Energy Transition Legislation Current Performance- Traditional Framework Multi-Year Plan Based Rates (Future Test Year) (IETL) 5.80% + average of 30-year ROE treasury rate each calendar year ICC determined ICC determined Potential for regulatory lag in non- Earned vs. Allowed Allowed test y
Slide 32: Solid ESG Ratings
Solid ESG Ratings A AAA 0 Dec. 2021 Dec. 2021 May 2021 A- Water 29.1 A Medium Risk Climate B Range: A-F Range: Range: (A is best) AAA-CCC 0-100 (AAA is best) (Lower is better) F CCC 100 First Quarter 2022 Earnings | May 6, 2022 32
Slide 33: Ameren's Estimated Coal-Related Revenues in 2021
Ameren’s Estimated Coal-Related Revenues in 2021 Return on Investment Revenues Cost Recovery3 Revenues $2.1B1 x $2.1B1 x ($103M $423M + 52% x 48% x x 25%) / $161M x $147M + 9.53%2 = 4.5% = (1 - 25%) 26%1 = $154M = $103M $45M $34M $42M $724M $6,394M 15% Return on Interest Tax Expense Property Fuel, o
Slide 34: Investor Relations Calendar
Investor Relations Calendar MAY 2022 JUNE 2022 SUN. MON. TUES. WED. THUR. FRI. SAT. SUN. MON. TUES. WED. THUR. FRI. SAT. 1 2 3 4 5 6 7 1 2 3 4 Q1 Quiet Q1 Period Earnings Cont’d Conf. Call 8 9 10 11 12 13 14 5 6 7 8 9 10 11 Virtual Annual Shareholder Meeting 15 16 17 18 19 20 21 12 13 14 15 16 17 18
Slide 35: Select Regulatory and Legislative Matters
Select Regulatory and Legislative Matters Missouri Public Service Commission • Order approving electric rate review filling: Docket No. ER-2021-0240 • Order approving natural gas rate review filing: Docket No. GR-2021-0241 • Smart Energy Plan filing: Docket No. EO-2019-0044 • 2020 Integrated Resourc
Slide 36: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations AFUDC – Allowance for funds used during construction IRP – Integrated resource plan ATXI – Ameren Transmission Company of Illinois ISRS – Infrastructure System Replacement Surcharge B – Billion M – Million bps – Basis points MEEIA – Missouri Energy Efficiency Inve