Ameren Corporation · NYSE:AEE
Ameren — Non-Deal Roadshow (October 2019)
30 slides from Ameren's roadshow presentation, Oct 2, 2019
Slide 1: Building a Brighter Energy Future
Building a Brighter Energy Future New York and Boston Investor Meetings Oct. 2-4, 2019
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 that of other companies. A reconciliation of GAAP to non-GAAP information is included in this presentation. Generally,
Slide 3: Company Description
Company Description Ameren Businesses 2.4M Fully rate-regulated electric and natural gas utility electric Ameren Missouri customers • Electric transmission, distribution, and generation business Corporate Headquarters and a natural gas distribution business in Missouri regulated Electric Service Ter
Slide 4: Strong Total Shareholder Return
Strong Total Shareholder Return Core Earnings per Total Shareholder Return Diluted Share1 Annualized Dividend 2013-20182 $3.50 $2.00 120% +60% +19% 115.2% $3.37 since 2013 since 2013 100% $3.10 $1.90 $1.85 80% $1.83 $2.83 $2.70 $2.68 $1.76 66.6% $1.70 60% 65.7% $2.56 $1.70 $2.30 $2.40 $1.64 40% $1.6
Slide 5: Our Value Proposition to Investors and Customers
Our Value Proposition to Investors and Customers Strong long-term Attractive Attractive total growth outlook dividend return potential • Expect 6% to 8% EPS CAGR from • Annualized equivalent dividend rate • Track record of delivering strong 2018-20231,2 of $1.90 per share provides results attractive
Slide 6: Our Strategic Plan
Our Strategic Plan • Investing in and operating our utilities in a manner consistent with existing regulatory frameworks • Enhancing regulatory frameworks and advocating for responsible energy and economic policies • Creating and capitalizing on opportunities for investment for the benefit of our cu
Slide 7: Strong Rate Base Growth in All Regulatory Jurisdictions
Strong Rate Base Growth in All Regulatory Jurisdictions ~$13.3 Billion of Regulated Infrastructure Investment 2018 to 2023E Regulated Five-Year Rate 2019-20231,2 Infrastructure Rate Base1,3 Base CAGR ($ billions) Ameren Illinois Ameren Illinois Electric Distribution Natural Gas $22.7 ~8% $2.5B $1.6B
Slide 8: Successfully Executing Our Strategic Plan in 2019
Successfully Executing Our Strategic Plan in 2019 • Major initiatives proceeding as planned – Ameren Missouri’s Smart Energy Plan, including wind generation investment – Ameren Illinois’ Modernization Action Plan 2019E Diluted EPS1 – Mark Twain multi-value transmission project • Working to achieve c
Slide 9: Ameren Missouri's Renewable Energy Investments
Ameren Missouri’s Renewable Energy Investments • Build-transfer agreements in place for 700 MWs of wind generation in Missouri, ~$1.2 billion investment1, to comply with Missouri’s RES – 400 MW facility: CCN approved by MoPSC in Oct. 2018 • Interconnection agreement executed in Aug. 2019 – 300 MW fa
Slide 10: Building a Brighter Energy Future
Building a Brighter Energy Future • Our customers are at the center of our strategy – Focused on meeting energy needs and exceeding expectations • Well-positioned to enable and implement an integrated energy grid that will deliver significant long-term value to our customers and shareholders – More
Slide 11: Summary
Summary Expect to deliver strong earnings growth in 2019 with guidance in a range of $3.15 to $3.351 per diluted share Successfully executing our strategy; well positioned for future growth Strong long-term growth outlook • Expect 6% to 8% compound annual EPS growth from 2018 through 20232,3,4 • Exp
Slide 12: Appendix
APPENDIX
Slide 13: Solid Operating Performance
Solid Operating Performance Delivery system reliability has Generating plant performance Electric rates are low Strong safety performance improved remains solid Outage Frequency Distribution System Baseload Energy Center Average Residential Lost ¢/KWh Recordable Safety Performance Workday (per custo
Slide 14: Four Constructive Regulatory Frameworks
Four 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 treatme
Slide 15: Capital Investment Plan Expected Funding Plan
Capital Investment Plan Expected Funding Plan 2019-20231,2 2019-20231 • Comfortable with capitalization levels at each legal entity ~$13.3 Billion of Regulated – Expect capitalization levels over the five-year period to remain in line Infrastructure Investment with those at the end of 2018 2019-2023
Slide 16: 2019 Long-Term Debt Financings and Maturities; Ameren Credit Ratings
2019 Long-Term Debt Ameren Credit Ratings Financings and Maturities and External Debt Balances1 • On Mar. 6, Ameren Missouri issued $450 million of 3.50% first mortgage bonds due 2029 As of June 30, 2019 $ in millions Moody's S&P – Proceeds used to repay short-term debt, including short-term debt in
Slide 17: Ameren Missouri Smart Energy Plan Filed With MoPSC in Feb.
Ameren Missouri Smart Energy Plan Filed With MoPSC in Feb. Investing in and operating our utilities in a manner consistent with existing regulatory frameworks • Five-year $6.3 billion investment plan1 with focus on modernizing energy grid and adding renewables – Automate the electric distribution sy
Slide 18: July 2019 Missouri Electric Rate Review Filing
July 2019 Missouri Electric Rate Review Filing • $1 million annual revenue decrease request filed July 3 with MoPSC Procedural Schedule: – Request allows for continued use of fuel adjustment clause, which requires rates to be reset every four years, and provides flexibility to time next rate review
Slide 19: July 2019 Missouri Electric Rate Review Filing, cont'd
July 2019 Missouri Electric Rate Review Filing, cont’d • Key drivers of requested $1 million annual revenue decrease – Decreased net energy costs1 otherwise subject to FAC recovery: ~$(100) million – Cost recovery through higher weather-normalized customer sales volumes: ~$(55) million – Decreased e
Slide 20: Select Regulatory Matters – Ameren Missouri and Ameren Illinois
Select Regulatory Matters – Ameren Missouri and Ameren Illinois Ameren Missouri Natural Gas • MoPSC approved $1 million annual revenue decrease on Aug. 21, 2019 – Use of actual capital structure as of May 31, 2019 of 52.0% equity – Range of reasonable ROE: 9.4% to 9.95%; ISRS ROE: 9.725% – New rates
Slide 21: Select Regulatory Matters – Ameren Transmission
Select Regulatory Matters – Ameren Transmission • First and second complaint cases to reduce MISO’s FERC base ROE – In Sep. 2016, FERC order issued in first complaint case set base ROE of 10.32% resulting in a total ROE of 10.82% including 50 basis point adder for MISO participation; order remains o
Slide 22: 2019 Earnings Analysis for Six Months Ended June 30
2019 Earnings Analysis for Six Months Ended June 30 Key Earnings Variance Drivers ↓ Ameren Missouri earnings — Lower electric retail sales: ~$(0.19) • Weather vs. prior year: ~$(0.23); vs. normal ~$(0.03) Diluted EPS — Callaway Energy Center refueling and maintenance outage vs. none in YTD June 2018
Slide 23: 2019 EPS Guidance and Select Balance of the Year Considerations
2019 EPS Guidance and Select Balance of the Year Considerations1 • Reaffirm 2019 diluted EPS guidance range of $3.15 to $3.35 • Select considerations for Q3-Q4 2019 EPS compared to Q3-Q4 2019E Diluted EPS 2018 core EPS – Ameren Missouri return to normal weather in 2019: Q3 ~$(0.06); Q4 ~$(0.05) $3.3
Slide 24: Executing Our Strategy – Investing in the Energy Grid
Executing Our Strategy – Investing in the Energy Grid 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 and shareholders – Investing to modern
Slide 25: ESG: Environmental Focus – Achieving Balance Responsibly
ESG: Environmental Focus – Achieving Balance Responsibly • Transitioning Ameren Missouri’s generation to a cleaner, more diverse portfolio in a responsible fashion Ameren’s Planned CO2 Emissions – Preferred plan1 includes addition of at least 700 MWs of wind Percent Reductions from 2005 generation b
Slide 26: ESG: Social and Governance Focus – Culture of Sustainability
ESG: Social and Governance Focus – Culture of Sustainability Hyperlinked below • Diverse Board of Directors focused on strong accountability and governance – Board committed to maintaining a balance of perspectives, qualifications, qualities and skills DI • 50% are women or ethnically diverse – All
Slide 27: GAAP to Core Earnings Reconciliations
GAAP to Core Earnings Reconciliations Year Ended Dec. 31, 2018 2017 2016 2015 2014 2013 GAAP Earnings / Diluted EPS $3.32 $2.14 $2.68 $2.59 $2.40 $1.18 Exclude results from discontinued operations — — — (0.01) — 0.87 Less: Income tax benefit / expense — — — (0.20) — 0.05 Exclude provision for discon
Slide 28: Select Regulatory Matters
Select Regulatory Matters Missouri Public Service Commission • Order approving Renewable Choice Program agreement: Docket No. ET-2018-0063 • Order approving CCN for 400-MW wind facility and use of RESRAM: Docket No. EA-2018-0202 • Order approving CCN for 300-MW wind facility: Docket No. EA-2019-0181
Slide 29: Investor Relations Calendar
Investor Relations Calendar OCTOBER 2019 NOVEMBER 2019 SUN. MON. TUES. WED. THUR. FRI. SAT. SUN. MON. TUES. WED. THUR. FRI. SAT. 1 2 3 4 5 1 2 Wolfe Boston Research Investor Conf. Meetings 6 7 8 9 10 11 12 3 4 5 6 7 8 9 Q3 2019 Q3 2019 Quiet Earnings Period Call begins 13 14 15 16 17 18 19 10 11 12
Slide 30: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations AFUDC – Allowance for funds used during construction ISRS – Infrastructure System Replacement Surcharge ALJ – Administrative Law Judge MEEIA – Missouri Energy Efficiency Investment Act ATXI – Ameren Transmission Company of Illinois MISO – Midcontinent Independent