Slide 1: Purpose-Driven Performance: 2017 Results and 2018 Guidance
Purpose-Driven Performance 2017 Results and 2018 Guidance Feb. 16, 2018
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 2017
Successfully Executed Our Strategic Plan in 2017 • Delivered strong 5.6% core1 earnings growth in 2017 Core1 Diluted EPS • Driven by successful execution of our strategy across all of our 2016 vs. 2017 businesses • Continued disciplined cost management and strategic capital allocation $2.83 • Major
Slide 5: 2018 and Five-Year Earnings Guidance
2018 and Five-Year Earnings Guidance • Expect 2018 diluted EPS in a range of $2.95 to $3.15 Diluted EPS ─ Midpoint represents strong 7.8% growth over 2017 core EPS 2017 Core1 vs. 2018 • Remain on track to deliver strong long-term earnings growth $3.15 ─ Expect 5% to 7% compound annual EPS growth fro
Slide 6: Executing Our Strategy in 2018 and Beyond
Executing Our Strategy in 2018 and Beyond 2017 to 2022E Regulated Five-Year Rate Investing in and operating our utilities in a manner consistent with existing regulatory frameworks Infrastructure Rate Base1 Base CAGR ($ Billions) • Expect strong ~7% compound annual rate base growth from 2017 through
Slide 7: Executing Our Strategy in 2018 and Beyond
Executing Our Strategy in 2018 and Beyond Enhancing regulatory frameworks and advocating for responsible energy and economic policies • Senate Bill 564 passed the Missouri Senate on Feb. 15, 2018 ─ Bill supports investment to modernize energy grid for the benefit of customers and state of Missouri ─
Slide 8: Executing Our Strategy in 2018 and Beyond
Executing Our Strategy in 2018 and Beyond Creating and capitalizing on opportunities for investment for the benefit of our customers and shareholders • Ameren Missouri in advanced negotiations with multiple wind developers for ownership of at least 700 MWs of generation, ~$1 billion investment ─ Wou
Slide 9: Executing Our Strategy in 2018 and Beyond
Executing Our Strategy in 2018 and Beyond 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 we serve and our shareholders ─ Investing to moder
Slide 10: Our Value Proposition to Investors and Customers
Our Value Proposition to Investors and Customers Attractive Strong Attractive total return long-term growth outlook dividend potential • Expect 5% to 7% compound annual EPS • Annualized equivalent dividend rate of • Attractive combined earnings growth growth from 2017 through 20221 $1.83 per share p
Slide 11: Financial Update
Financial Update Marty Lyons Executive Vice President and Chief Financial Officer, Ameren Corp.
Slide 12: GAAP to Core Earnings Reconciliation
GAAP to Core Earnings Reconciliation (in millions, except per share amounts) Year-Ended Dec. 31, 2016 2017 GAAP Earnings / Diluted EPS $ 653 $ 2.68 $ 523 $ 2.14 Charge for revaluation of deferred taxes resulting from — — 22 0.09 increased Illinois state income tax rate Less: Federal income tax benef
Slide 13: 2017 Earnings Analysis
2017 Earnings Analysis Core1 Diluted EPS Key Earnings Variance Drivers: 2016 vs. 2017 Higher Ameren Transmission earnings $2.83 ─ Increased investments in infrastructure, partially offset by a lower allowed ROE $2.68 Higher Ameren Illinois Natural Gas distribution earnings $0.48 $0.58 ─ Increased in
Slide 14: Impacts of Federal Income Tax Reform
Impacts of Federal Income Tax Reform • Key utility provisions included in legislation enacted in Dec. 2017 ─ Corporate tax rate reduced to 21% from 35% beginning Jan. 1, 2018 ─ End of bonus depreciation for regulated utilities ─ Interest deductibility retained for regulated utilities ─ State and loc
Slide 15: Investing Strategically, Consistent with Regulatory Frameworks
Investing Strategically, Consistent with Regulatory Frameworks Excludes Ameren Missouri’s proposed wind generation and potential incremental grid modernization investments ~$11 Billion of Regulated 2017 to 2022E Regulated Five-Year Rate Infrastructure Investment1 Infrastructure Rate Base1,2 Base CAG
Slide 16: Expected 2018-2022 Funding Plan
Expected 2018-2022 Funding Plan • Return of capital through depreciation in rates • Retained earnings • ~$1 billion of income tax deferrals and tax asset utilization ─ Income tax deferrals driven primarily by capital expenditures ─ Includes ~$350 million of tax assets at year-end 2017 • Net operatin
Slide 17: 2018 Earnings Guidance: Key Drivers and Assumptions
2018 Earnings Guidance: Key Drivers and Assumptions Higher average estimated rate base: ~$2.91 billion compared to ~$2.51 billion in 2017 reflecting infrastructure investments Ameren ─ FERC decision in second MISO ROE complaint case uncertain; guidance assumes 10.82% Transmission • ALJ recommended 1
Slide 18: 2018 Earnings Guidance: Key Drivers and Assumptions
2018 Earnings Guidance: Key Drivers and Assumptions Increased electric service rates for Q1 2018: ~+$0.111 Absence of scheduled Callaway refueling and maintenance outage: ~+$0.111 Return to normal weather: ~+$0.061 Ameren Lower expected interest expense driven by refinancing debt in 2017 and 2018: ~
Slide 19: 2018 Cash Flow Guidance
2018 Cash Flow Guidance 2018 Capital Expenditures 2018 ($ Millions) ($ millions) Guidance $2,185 $70 Net cash provided by operating activities $ 1,790 Capital expenditures (2,185) $470 Other cash used in investing activities (55) $330 61% Dividends: common and preferred1 (450) $465 Free cash flow $
Slide 20: Select Regulatory Matters
Select Regulatory Matters Ameren Transmission • Second complaint case to reduce MISO’s FERC-allowed base ROE pending ─ 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 for MISO part
Slide 21: Select Regulatory Matters, Cont'd
Select Regulatory Matters, Cont’d Ameren Illinois Natural Gas • In Jan. 2018, requested a $49 million annual natural gas distribution rate increase from ICC; includes ~$42 million that would otherwise be recovered in 2019 under qualifying infrastructure plant (QIP) rider – Based on 10.3% ROE; 50% eq
Slide 22: Summary
Summary Expect to deliver strong earnings growth in 2018 with guidance in a range of $2.95 to $3.15 per diluted share Successfully executing our strategy Strong long-term growth outlook • Expect 5% to 7% compound annual EPS growth from 2017 through 20221 • Expect ~7% compound annual rate base growth
Slide 23: Appendix
_ Appendix
Slide 24: Transitioning Generation to Cleaner, More Diverse Energy Portfolio
Transitioning Generation to Cleaner, More Diverse Energy Portfolio • Ameren Missouri filed its preferred 20-year Integrated Resource Plan with MoPSC in Sept. 2017 ─ Plan included addition of at least 700 MWs of wind generation1 by 2020, representing potential ~$1 billion wind investment ─ Would achi
Slide 25: Ameren Organizational Structure and External Debt Balances
Ameren Organizational Structure and External Debt Balances1 $ in millions as of Dec. 31, 2017 All Moody’s outlooks “Stable”; all S&P outlooks “Positive” Ameren Corporation (Baa1/BBB+) Sr. Unsecured (Baa1/BBB) - $700 Commercial paper (P-2/A-2) - $383 Ameren Missouri Ameren Illinois ATXI (Baa1/BBB+) (
Slide 26: Select Regulatory Matters
Select Regulatory Matters Missouri Public Service Commission • Senate Bill 564: http://www.senate.mo.gov/18info/pdf-bill/intro/SB564.pdf • 2017 Integrated Resource Plan: https://www.ameren.com/missouri/environment/integrated-resource-plan and Docket No. EO-2018-0038 • Working proceeding regarding ef
Slide 27: Investor Relations Calendar
Investor Relations Calendar LATE FEBRUARY/MARCH 2018 APRIL/EARLY MAY 2018 SUN. MON. TUES. WED. THUR. FRI. SAT. SUN. MON. TUES. WED. THUR. FRI. SAT. Feb. 25 26 27 28 Mar. 1 2 3 Apr. 1 2 3 4 5 6 7 Morgan Stanley & BAML Barclays Conf. Conf. 4 5 6 7 8 9 10 8 9 10 11 12 13 14 Q1 Quiet Period, begins 11 1
Slide 28: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations ALJ – Administrative Law Judge IRP – Integrated Resource Plan ATXI – Ameren Transmission Company of Illinois kW - Kilowatt B – Billion M – Million CAGR – Compound annual growth rate MEEIA – Missouri Energy Efficiency Investment Act CCN – Certificate of Convenience