Firstenergy Corp. · NYSE:FE
Firstenergy — Non-Deal Roadshow (February 2019)
13 slides from Firstenergy's roadshow presentation, February 2019
Slide 1: A Renewed and Regulated Focus
FirstEnergy A Renewed and Regulated Focus Investor Meetings Los Angeles and San Francisco February 2019
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 based on information currently available to management. Such statements are subject to certain risks and uncertainties and readers are cautioned
Slide 3: Non-GAAP Financial Matters
Non-GAAP Financial Matters This presentation contains references to non-GAAP financial measures including, among others, Operating earnings (loss), Operating earnings (loss) per share. Generally, a non-GAAP financial measure is a numerical measure of a company’s historical or future financial perfor
Slide 4: FE's Value Proposition
FE’s Value Proposition Ticker: FE A premier customer-focused, pure-play regulated utility Driving sustainable, long-term regulated Improving balance sheet with investment-grade earnings growth and a competitive dividend credit ratings 10 distribution utilities, Proven track record of 6M customers, 6
Slide 5: FirstEnergy Overview
FirstEnergy Overview OUR MISSION We are a forward-thinking electric utility powered by a diverse team of employees committed to making customers’ lives brighter, the environment better and our communities stronger. Regulated Plants 230, 345 and 500 kV Transmission Lines Utility footprint $39B ~6 Mil
Slide 6: FES/FENOC Restructuring: 2018 Achievements
2018 Achievements JANUARY JULY SEPTEMBER Regulated Growth Plan $2.5B equity issuance and Filed JCP&L Reliability Plus Announced new organizational Restructuring Working Group infrastructure investment plan structure (FE Tomorrow) AUGUST NOVEMBER FEBRUARY Grid Mod (DPM)/TCJA Filed distribution rate c
Slide 7: FE Tomorrow Update
FE Tomorrow Update Right-sizing Shared Service Organization Incremental Shared Service Savings ■ Cost reductions ~$300M related to the ■ Identified ~$85M of savings in 2019 support of the competitive business – ~$50M reduction of O&M and Interest – Reduces 1/3 of Shared Services costs – ~$35M reduct
Slide 8: 2019 Operating EPS Guidance
2019 Operating EPS Guidance + Increased wires revenues + Transmission rate base growth + FE Tomorrow savings + Lower effective tax rate 2018 + $2.60 2019 midpoint $2.45 – $2.75 /sh - range (1) – Higher depreciation – Higher general taxes (1) Guidance midpoint is based on fully diluted shares of 540M
Slide 9: 2018-2021 Operating EPS CAGR
2018-2021 Operating EPS CAGR Affirming our 6% - 8% operating EPS CAGR target 6% - 8% Growth (excludes Ohio DMR) $2.15 + T&D growth opportunities + Organic utility growth + FE Tomorrow initiatives 2018F Original – Depreciation and general taxes 2021F Guidance Midpoint Load growth (excluding Ohio DMR)
Slide 10: Financing Plan (2019-2021)
Financing Plan (2019-2021) Committed to maintaining investment-grade credit ratings FE Corp Regulated Distribution Year Entity Amount Purpose Year Entity Amount Purpose FE Corp Up to $628M New tax notes to FES creditors ME $500M $300M at 7.7% maturing 1/15/19 2019F FE Corp Up to $1.25B $1.25B Term L
Slide 11: Capital Expenditures Forecast Summary
Capital Expenditures Forecast Summary $11B – $12B in capital investments 2018-2021 ~55% based on formula rates Annually 2018F 2019F – 2021F FE Consolidated Total $2.9B $2.8B - $3.0B ($ Millions) 2018F 2019F 2020F 2021F Regulated Distribution (~40% formula rates) $1,600 $1,600-$1,700 $1,500-$1,700 $1
Slide 12: Dividend Policy
Dividend Policy ■ On November 9, 2018, The Board of Directors approved a dividend policy ■ Effective beginning with the March 1, 2019 dividend: – A $0.02 per share increase; quarterly dividend will be $0.38 per share or $1.52 annualized per share in 2019 (1) $0.38 +6% 55-65% per share Resuming divid
Slide 13: FirstEnergy Investor Relations Contacts
FirstEnergy Investor Relations Contacts Irene M. Prezelj, Vice President Gina E. Caskey, Senior Advisor prezelji@FirstEnergyCorp.com caskeyg@FirstEnergyCorp.com 330-384-3859 330-761-4185 Jake M. Mackin, Consultant mackinj@FirstEnergyCorp.com 330-384-4829 For our e-mail distribution list, please cont