Edison International · NYSE:EIX
Edison International — Q1 2024 Earnings Presentation
31 slides from Edison International's earnings presentation, Apr 30, 2024
Slide 1: First-Quarter 2024 Financial Results
FIRST-QUARTER 2024 FINANCIAL RESULTS APRIL 30, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 statem
Slide 3: First Quarter Key Messages
First Quarter Key Messages 1 Q1 performance on track; affirming 2024 core EPS guidance ($0.03) $1.13 Q1 2024 GAAP EPS Q1 2024 Core EPS1 Edison is leading the industry’s response to climate 2 change and has reduced risk of losses from wildfires by 85–88% Affirmed $4.75–5.05 2025 GRC: Intervenor focus
Slide 4: SCE is seeing numerous proof points from wildfire mitigation efforts
SCE is seeing numerous proof points and results from its differentiated and substantial wildfire mitigation efforts 5,700+ MILES 2 MILLION+ No ignitions due to failure of OF COVERED CONDUCTOR1 TRIMS AND REMOVALS IN HFRA1 covered conductor 100% fewer structures destroyed (in 2023 vs. 2017-18) 1 M
Slide 5: SCE's 2023–25 Wildfire Mitigation Plan builds upon accomplishments
SCE’s 2023–25 Wildfire Mitigation Plan (WMP) builds upon accomplishments Hardening Enhancing Operational Bolstering Situational the Grid Practices Awareness Covered conductor & Vegetation Management Weather stations undergrounding Fire-resistant poles Aerial & ground Inspections Wildfire cameras Pro
Slide 6: Wildfire mitigation and PSPS have reduced probability of losses by 85–88%
SCE estimates its wildfire mitigation and PSPS have reduced probability of losses from catastrophic wildfires by 85–88%1,2 Stochastic modeling of 50,000 Uses Moody’s RMS’ model Risk reduction achieved simulations to estimate future widely used by insurance predominantly via grid probability of losse
Slide 7: Approaching 90% of distribution lines in high fire risk area hardened by end of 2025
By end of 2025, expect to be approaching 90% of total distribution lines in high fire risk area hardened1 Hardening Status of Total Circuit Miles of Distribution Lines in SCE’s High Fire Risk Area As of March 31, 2024 % Physically Hardened 78% 90%+ Distribution lines Completed2 underground (primaril
Slide 8: SCE has the most hardened distribution circuit miles in California's HFRA
SCE has the most hardened distribution circuit miles in California’s high fire risk area1 Hardening Status of California IOU Distribution Lines in High Fire Risk Area Thousands of circuit miles, Sorted by percentage of total distribution circuit miles in HFRA hardened, Estimated as of December 31, 2
Slide 9: First-Quarter Earnings Summary
First-Quarter Earnings Summary Q1 2024 Q1 2023 Variance Key SCE EPS Drivers2 Higher revenue3,4 $ 0.35 Basic Earnings Per Share (EPS) GRC escalation 0.33 Other CPUC revenue 0.03 SCE $ 0.17 $ 0.97 $ (0.80) FERC and other operating revenue (0.01) EIX Parent & Other (0.20) (0.16) (0.04) Higher O&M4 (0.0
Slide 10: GRC underpins ~$38–43 billion 2023–2028 capex forecast
GRC underpins ~$38–43 billion 2023–2028 capex forecast; substantial additional investment opportunities offer upside Capital deployment expected to increase in 2025–20281 Capital Expenditures, $ in Billions Forecast $8.1 $8.2 Forecast does not include $7.5 $7.7 substantial additional capital 0.9 1.0
Slide 11: Projected ~6–8% rate base growth 2023–2028
Projected ~6–8% rate base growth 2023–2028; substantial additional investment opportunities offer upside Strong rate base growth driven by wildfire mitigation and important grid work to support California’s leading role in clean energy transition Rate Base1, $ in Billions ~8% CAGR Forecast does not
Slide 12: GRC update: Intervenor focus areas as expected
GRC update: Intervenor focus areas as expected; SCE continues advocacy for requested funding of critical grid investments Key Intervenor Focus Areas CalPA and TURN proposals would result in rate base growth near range case forecast Infrastructure Replacement: Acknowledge need for SCE’s increase Impl
Slide 13: Resolution of 2017/2018 Wildfire/Mudslide Events advances
Resolution of 2017/2018 Wildfire/Mudslide Events advances Q1 Update: Best estimate adjusted by $490MM Substantial progress resolving claims $ in Billions, as of March 31, 20244 Primarily driven by information obtained related to the Woolsey Fire mediation program deadline in Feb. 2024 9.9 – More pla
Slide 14: EIX affirms 2024 Core EPS guidance of $4.75–5.05
EIX affirms 2024 Core EPS guidance of $4.75–5.05 EIX 2024 Core Earnings Per Share Guidance Range Building from SCE Rate Base EPS 2024 Modeling Considerations 2024 2024 Rate Base EPS: CPUC ROE: 10.75% / FERC ROE: 10.30% 2023 YTD Guidance SCE Operational Variance includes: Rate Base EPS 5.51 1.45 6.11
Slide 15: EIX's 2024 financing plan is nearly complete
EIX’s 2024 financing plan is nearly complete EIX 2024 Financing Plan1 Equity needs fully addressed: $100 million of equity, $75 million pre-funded with excess JSN proceeds in Dec. 2023; remaining need fully addressed via internal programs in Q1 2024 Minimal debt financing: Plan to issue $500 milli
Slide 16: EIX expects 5–7% Core EPS growth for 2025–2028
EIX expects 5–7% Core EPS growth for 2025–2028, with financing plan showing minimal equity needs Achievable EPS growth for 2028 2025–2028 EIX consolidated financing plan2 Core Earnings per Share Guidance1 $ in Billions $6.60–7.00 5–7% Dividends3 Equity CAGR $5.70 Incremental Debt4 ~$0.4 $6–7 $8–11 C
Slide 17: EIX offers double-digit total return potential
EIX offers double-digit total return potential 5–7% Core EPS CAGR1 Underpinned by strong rate base growth of ~6–8% 2021–2025 and 2025–2028 $38–43 billion 2023–2028 capital program ~4% 20 consecutive years of dividend growth current dividend yield2 Target dividend payout of 45–55% of SCE core earning
Slide 18: Additional Information
ADDITIONAL INFORMATION
Slide 19: SCE continues to fund wildfire claims payments with debt
SCE continues to fund wildfire claims payments with debt Wildfire Claims Payment-Related Debt Issuances Interest expense not currently recoverable in rates, $ in Millions except percentages, as of April 30, 20241 however, will be included in 2017/2018 Wildfire/ Series Principal Due Rate Mudslide Eve
Slide 20: SCE Key Regulatory Proceedings
SCE Key Regulatory Proceedings Proceeding Description Next Steps Base Rates 2025 GRC Sets CPUC base revenue requirement for 2025–2028. For more Evidentiary hearings to be held in May; update (A.23-05-010) information, see the Investor Guide to SCE’s 2025 GRC testimony due June 7 Wildfire 2022 CEMA R
Slide 21: 2024 focus for 2017/18 Wildfire/Mudslide Events
2024 focus for 2017/18 Wildfire/Mudslide Events: Continued progress toward resolution; target Woolsey application in Q3 Resolve remaining claims File Woolsey cost recovery TKM1 cost recovery 1 2 3 in timely manner application in Q3 2024 proceeding in early stages In Q1 2024, adjusted best Target
Slide 22: TKM Cost Recovery Schedule
TKM Cost Recovery Schedule Event Scoping Ruling Date Application Filed Complete Protests and responses Complete SCE’s reply to protests Complete Pre-hearing Conference Complete Intervenors’ prepared direct testimony May 29, 2024 Rebuttal testimony June 28, 2024 Joint Motion for Approval of S
Slide 23: 2025 GRC Schedule
2025 GRC Schedule Event Scoping Ruling Date Application Filed Complete Mandated Workshop Complete Protests and Responses to Application Complete Pre-hearing Conference Complete Intervenors’ Prepared Direct Testimony Complete 2023 Recorded Expenditures Served by SCE Complete Prepared Re
Slide 24: Cash flow from memo account recovery and securitization strengthens balance sheet
Cash flow from memo account recovery and securitization strengthens our balance sheet and credit metrics GRC, Wildfire-related, and Wildfire Insurance Applications $ in Millions Approved Applications Balance @ Recovery Remaining Rate Recovery by Year Application / Account Mar. 31, 2024 Through Q2–Q4
Slide 25: EIX reaffirms 5–7% 2021–2025 Core EPS growth rate target
EIX reaffirms 5–7% 2021–2025 Core EPS growth rate target, which would result in 2025 Core EPS of $5.50–5.901 2025 Core Earnings per Share Component Ranges Component Modeling Considerations Rate Base EPS • CPUC ROE of 10.75% and FERC ROE 10.30% (based on capex levels) 6.85–7.00 SCE Op. Variance • AFU
Slide 26: Key 2028 Earnings Sensitivities
Key 2028 Earnings Sensitivities Sensitivity Variable (“Per year” amounts refer to 2025–2028) 2028 EPS1 Capex & Rate Base $100 million/year of capex ~5¢ Rate Base AFUDC Annual capex of 1¢ $200 million Requested ~$400 million increase If requested increase +15–35¢ in depreciation in 2025 GRC not autho
Slide 27: Earnings Non-GAAP Reconciliations
Earnings Non-GAAP Reconciliations Reconciliation of EIX GAAP Earnings to EIX Core Earnings Net Income (Loss) Attributable to Edison International, $ in Millions Q1 2024 Q1 2023 SCE $ 65 $ 370 EIX Parent & Other (76) (60) Basic Earnings $ (11) $ 310 Non-Core Items SCE 2017/2018 Wildfire/Mudslide Even
Slide 28: EIX Core EPS Non-GAAP Reconciliations
EIX Core EPS Non-GAAP Reconciliations Reconciliation of EIX Basic Earnings Per Share to EIX Core Earnings Per Share EPS Attributable to Edison International1 Q1 2024 Q1 2023 Basic EPS $ (0.03) $ 0.81 Non-Core Items SCE 2017/2018 Wildfire/Mudslide Events claims and expenses, net of recoveries (1.21)
Slide 29: EIX Core EPS Non-GAAP Reconciliations
EIX Core EPS Non-GAAP Reconciliations Reconciliation of EIX Basic Earnings Per Share to EIX Core Earnings Per Share EPS Attributable to Edison International Midpoint of Guidance Range 2025 2024 2023 2022 2021 Basic EPS $ 5.70 $ 3.74 $ 3.12 $ 1.61 $ 2.00 Non-Core Items SCE 2017/2018 Wildfire/Mudslide
Slide 30: Earnings Per Share Non-GAAP Reconciliations
Earnings Per Share Non-GAAP Reconciliations Reconciliation of EIX Basic Earnings Per Share Guidance to EIX Core Earnings Per Share Guidance 2024 EPS Attributable to Edison International Low High Basic EIX EPS $3.59 $3.89 Total Non-Core Items1 (1.16) (1.16) Core EIX EPS $4.75 $5.05 1. Non-core items
Slide 31: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Edison International's earnings are prepared in accordance with generally accepted accounting principles used in the United States. Management uses core earnings (loss) internally for financial planning and for analysis of performance. Core earnings (loss) are also