Edison International · NYSE:EIX
Edison International — Q1 2021 Earnings Presentation
18 slides from Edison International's earnings presentation, Apr 27, 2021
Slide 1: First Quarter 2021 Financial Results
April 27, 2021 First Quarter 2021 Financial Results
Slide 2: Forward-looking statements
1 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 statements. These forward-looki
Slide 3: SCE's execution of its wildfire mitigation strategy is reducing wildfire risk
2 SCE’s execution of its wildfire mitigation strategy is reducing risk of wildfires associated with utility infrastructure April 27, 2021 Community Resource Centers Community Crew Vehicles 56 sites available 8 vehicles available High-Definition Wildfire Cameras Completed Since 2018 166 cameras insta
Slide 4: California has continued to increase investments in wildfire suppression and prevention
3 California has continued to increase investments in wildfire suppression and prevention1 April 27, 2021 CAL FIRE budget support along with actions to increase staffing and improve effectiveness ~$2.5–2.8bn/year ~7,180–8,134 Increases to firefighting crews Helicopter replacements continue Air tanke
Slide 5: EIX is well positioned for a decarbonized future
4 EIX is well positioned for a decarbonized future, with no coal or gas LDC exposure and high electric sales growth potential UTY1 EEI Index2 Electric-Only & No Gas LDC Exposure (# of Companies) 6 of 20 11 of 39 ✓ No stranded asset risk with increased electrification No Coal Generation Ownership (#
Slide 6: Annual residential household energy costs (2019$)
5 Annual residential household energy costs (2019$)1 2019 2045 By 2045, a greater reliance on electricity, combined with population and economic growth, will result in a 60% increase in electricity sales from the grid Household savings driven by reduced gasoline consumption due to high market penetr
Slide 7: Significant incremental grid investments required by 2045
6 Significant incremental grid investments required by 2045 to serve load growth and integrate renewables and storage1 April 27, 2021 1. Based on SCE’s Pathway 2045 analysis 2. In 2019 dollars under Balanced Scenario 3. See SCE’s Reimagining the Grid white paper for additional information Source: SC
Slide 8: First Quarter Earnings Summary: Key EPS Drivers
7 Key SCE EPS Drivers2 Higher revenue3 0.05 CPUC revenue 0.02 FERC and other operating revenue 0.03 Lower O&M 0.20 Higher depreciation (0.08) Lower net financing costs 0.08 Income taxes3 (0.01) Property and other taxes (0.03) Results prior to impact from share dilution 0.21 $ Impact from share dilut
Slide 9: SCE has strong capex and rate base growth
8 5.5 5.5 5.3 5.4 2020 (Actual) 2021 2022 2023 SCE has strong capex and rate base growth driven by significant electric infrastructure investment opportunities 1. In accordance with Assembly Bill (AB) 1054, ~$1.6 billion of wildfire mitigation-related spend shall not earn an equity return 2. Morongo
Slide 10: GRC track request supported by grid hardening, wildfire mitigation, electrification
9 GRC track 1 request supported by investments for grid hardening, wildfire mitigation, and electrification 1. SCE Rebuttal rate base forecast reflects 2021–2023 rebuttal and latest Non-GRC and FERC estimates 2. CalPA rate base forecast assumes CPUC GRC rate base attrition year increases for 2022 an
Slide 11: Ongoing and pending cost recovery will strengthen balance sheet and credit metrics
10 Ongoing and pending cost recovery will further strengthen balance sheet and credit metrics Approved Application Approved Amount1 Expected recovery mechanism/timing ✓ GRC Track 2 Jan. 2021 391 Securitization of O&M and AB 1054 capital2 ✓ WEMA1 Sept. 2020 505 Currently in rates. Complete by Oct. 20
Slide 12: SCE plans to securitize AB 1054 capex and O&M upon CPUC approval
11 SCE plans to securitize ~$1.6 billion of AB 1054 capex and ~$0.5 billion of O&M upon CPUC approval April 27, 2021 O&M2 Total Costs Cost Recovery Financing Order Issue Recovery Bonds AB 1054 Capex1 File Testimony CPUC Approval File Testimony CPUC Approval GS&RP3 327 – 327 ✓ ✓ ✓ ✓ ✓ GRC Track 2 219
Slide 13: 2017/2018 Wildfire/Mudslide Events Update
12 2017/2018 Wildfire/Mudslide Events Update: More than two-thirds of best estimate has been resolved 1. Thomas Fire, Koenigstein Fire, and Montecito Mudslides 2. After giving effect to approximately $1.8 billion in fixed payments due under settlements executed before March 31, 2021, but not paid at
Slide 14: Appendix
Appendix ee FY EDON.
Slide 15: SCE's 2021 General Rate Case will be approved in four tracks
14 SCE’s 2021 General Rate Case will be approved in four tracks over 2021–2023 SCE Testimony Intervenor Testimony SCE Rebuttal Opening & Reply Briefs CPUC Proposed Decision Track 1: 2021–2023 GRC Revenue Requirement ✓ ✓ ✓ ✓ Pending Track 2: 2018–2019 FMA Update2 ✓ ✓ ✓ N/A due to settlement ✓ (Approv
Slide 16: Earnings Non-GAAP Reconciliations
15 Earnings Non-GAAP Reconciliations April 27, 2021 Q1 2021 Q1 2020 SCE 296 $ 219 $ EIX Parent & Other (37) (36) Basic Earnings 259 $ 183 $ Non-Core Items SCE 2017/2018 Wildfire/Mudslide Events expenses (4) — Wildfire Insurance Fund expense (38) (60) Re-measurement of tax liabilities — 18 EIX Parent
Slide 17: EIX Core EPS Non-GAAP Reconciliations
16 EIX Core EPS Non-GAAP Reconciliations April 27, 2021 1. For comparability, 2021 EPS drivers are reported based on 2020 weighted-average share count of 362.6 million. 2021 weighted-average shares outstanding is 379.2 million Q1 2021 Q1 2020 Basic EPS 0.68 $ 0.50 $ Non-Core Items SCE 2017/2018 Wild
Slide 18: Use of Non-GAAP Financial Measures
17 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 also used when communicating wit