Slide 1: Purpose-Driven Performance
Purpose-Driven Performance Second Quarter 2018 Earnings Aug. 3, 2018
Slide 2: Cautionary Statements
Cautionary Statements Use of Non-GAAP Financial Measures In this presentation, Ameren has presented core earnings per share, which is a non-GAAP measure and may not be comparable to those of other companies. A reconciliation of GAAP to non-GAAP information is included in this presentation. Generally
Slide 3: Business Update
Business Update Warner Baxter Chairman, President and Chief Executive Officer, Ameren Corp.
Slide 4: Delivering Strong Earnings Results
Delivering Strong Earnings Results • Raised 2018 diluted EPS guidance range to $3.15 to $3.35 Diluted EPS from $2.95 to $3.15 2017 vs. 2018 ─ Reflects benefit of weather and solid execution of strategy $1.59 • Key Q2 Earnings Variance Drivers1 Higher Ameren Missouri electric retail sales primarily d
Slide 5: Successfully Executing Our Strategic Plan in 2018
Successfully Executing Our Strategic Plan in 2018 Our Strategic Plan Capital Expenditures YTD June 30, 2018 • Investing in and operating our utilities in a manner consistent with ($ Millions) existing regulatory frameworks $1,112 • Enhancing regulatory frameworks and advocating for responsible energ
Slide 6: Executing Our Strategy – Missouri Legislation Enacted
Executing Our Strategy – Missouri Legislation Enacted Enhancing regulatory frameworks and advocating for responsible energy and economic policies • SB 564 passed with strong bipartisan legislative support, signed into law by the governor ─ Win for customers, win for the State of Missouri and win for
Slide 7: Executing Our Strategy – Proposed Wind Investment
Executing Our Strategy – Proposed Wind Investment Creating and capitalizing on opportunities for investment for the benefit of our customers and shareholders • Ameren Missouri pursuing ownership of at least 700 MWs of wind generation, ~$1 billion investment, with multiple developers ─ Proposed inves
Slide 8: Long-Term Total Return Outlook Rate Base Growth Plan 2017-2022
Long-Term Total Return Outlook Rate Base Growth Plan 2017-20222 • Expect 5% to 7% compound annual EPS growth from Regulated Rate Base3 Five-Year Rate 2017 through 20221,2 ($ Billions) Base CAGR ─ Primarily driven by strong rate base growth • Expect ~7% compound annual rate base growth from ~+7% $20.
Slide 9: Financial Update
Financial Update Marty Lyons Executive Vice President and Chief Financial Officer, Ameren Corp.
Slide 10: 2018 Second Quarter Earnings Analysis
2018 Second Quarter Earnings Analysis1 Key Earnings Variance Drivers: Diluted EPS Higher Ameren Missouri earnings Q2 2017 vs. Q2 2018 ─ Higher electric retail sales primarily due to extremely warm early summer temperatures compared to near-normal temperatures in Q2 2017: ~+$0.24 $0.97 • Temperatures
Slide 11: 2018 EPS Guidance and Select Balance of Year Considerations
2018 EPS Guidance and Select Balance of Year Considerations • Raised 2018 diluted EPS guidance range to $3.15 to $3.35 – Reflects benefit of weather and solid execution of strategy 2018E Diluted EPS • Q3-Q4 2018 EPS compared to Q3-Q4 2017 core1 EPS2 Absence of Ameren Missouri Callaway refueling and
Slide 12: 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 13: Select Regulatory Matters, Cont’d
Select Regulatory Matters, Cont’d Ameren Illinois Natural Gas • Requested $37 million base rate increase from ICC in annual revenues using 2019 future test year – Incorporates agreement with ICC Staff on all issues • 9.87% ROE, 50% equity ratio and $1.6 billion rate base • Rate base is year-end 2018
Slide 14: Summary
Summary Expect to deliver strong earnings growth in 2018 with increased guidance in a range of $3.15 to $3.35 per diluted share Successfully executing our strategy Strong long-term growth outlook • Expect 5% to 7% compound annual EPS growth from 2017 through 20221,2 • Expect ~7% compound annual rate
Slide 15: Appendix
_ Appendix
Slide 16: Constructive Regulatory Frameworks
Constructive Regulatory Frameworks FERC-regulated: Formula ratemaking • Allowed ROE is 10.82%, 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 treatment fo
Slide 17: 2018 Earnings Analysis for Six Months Ended June 30
2018 Earnings Analysis for Six Months Ended June 30 1 Diluted EPS Key Earnings Variance Drivers: YTD June 2017 vs. YTD June 2018 Higher Ameren Missouri earnings $1.59 ─ Higher electric retail sales primarily due to colder winter and extremely warm early summer temperatures: ~+$0.32 $0.30 ─ Temperatu
Slide 18: Impacts of Federal Income Tax Reform
Impacts of Federal Income Tax Reform Ameren Transmission • In Mar. 2018, FERC approved MISO transmission owners request to pass savings from lower federal income tax rate to customers retroactive to Jan. 1, 2018 ─ ~$27 million and ~$23 million for Ameren Illinois and ATXI, respectively, for 2018; ex
Slide 19: 2017 GAAP to Core Earnings Reconciliation
2017 GAAP to Core Earnings Reconciliation Three-Months Ended Year-Ended (in millions, except per share amounts) Sept. 30, 2017 Dec. 31, 2017 Dec. 31, 2017 GAAP Earnings / Diluted EPS $ 288 $ 1.18 $ (60) $ (0.24) $ 523 $ 2.14 Charge for revaluation of deferred taxes resulting 22 0.09 — — 22 0.09 from
Slide 20: 2018 Long-Term Debt Financings and Maturities; Ameren Credit Ratings
2018 Long-Term Debt Financings Ameren Credit Ratings and and Maturities External Debt Balances1 • On Apr. 6, Ameren Missouri issued $425 million of As of June 30, 2018 $ in 4.00% first mortgage bonds due 2048 millions Moody's S&P – Proceeds used to repay short-term debt, including short-term Ameren
Slide 21: 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 passing savings from federal income tax reform to customers: Docket No. ER-2018-0362 • Order approving Renewable Choice Program agreement: Docket No. ET-201
Slide 22: Investor Relations Calendar
Investor Relations Calendar AUGUST 2018 SEPTEMBER/EARLY OCTOBER 2018 SUN. MON. TUES. WED. THUR. FRI. SAT. SUN. MON. TUES. WED. THUR. FRI. SAT. 1 2 3 4 2 3 4 5 6 7 1/8 Q2 Quiet Q2 2018 Barclays Fireside Period, Earnings Power Chat with continued Release Conf. Dan Ford 5 6 7 8 9 10 11 9 10 11 12 13 14
Slide 23: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations ALJ – Administrative Law Judge MISO – Midcontinent Independent System Operator, Inc. ATXI – Ameren Transmission Company of Illinois MoPSC – Missouri Public Service Commission B – Billion MW – Megawatt CAGR – Compound annual growth rate OPEB – Other Post-Employment