Edison International · NYSE:EIX
Edison International — Q2 2022 Earnings Presentation
23 slides from Edison International's earnings presentation, Jul 28, 2022
Slide 1: Second Quarter 2022 Financial Results
Second Quarter 2022 Financial Results July 28, 2022
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: Edison International Second Quarter Update
Edison International Second Quarter Update Q2 2022 core EPS driven primarily by adoption of GAAP EPS: $0.63 2021 GRC decision in Q3 2021 Core EPS1: $0.94 $4.40–4.70 EIX reaffirms 2022 EPS guidance 2022 Core EPS1 Installed over 3,500 circuit miles of covered Expect to achieve 4,000 miles by conductor
Slide 4: SCE's execution of its wildfire mitigation strategy is reducing risk of wildfires
SCE’s execution of its wildfire mitigation strategy is reducing risk of wildfires associated with utility infrastructure Installed ~3,630 circuit Network of 1,570+ SCE is providing aerial miles of covered weather stations suppression resources to conductor to-date, or providing real-time local fire
Slide 5: 2017/2018 Wildfire/Mudslide Events Update: 89% of best estimate resolved
2017/2018 Wildfire/Mudslide Events Update: 89% of best estimate resolved. Anticipate cost recovery filing by late 2023 SCE continues to make substantial …and SCE will seek CPUC recovery of prudently-incurred progress resolving claims… actual losses and related costs in excess of insurance $ in Billi
Slide 6: Edison's 2021 sustainability achievements advanced our clean energy strategy
Edison’s 2021 sustainability achievements advanced our clean energy strategy and enhanced value to our stakeholders Climate Change 1,500 miles of overhead Mind the Gap policy paper published Proposed a $677 million power lines replaced with by Edison International, highlighting investment between 20
Slide 7: Edison International's industry-leading ESG profile received wide-ranging recognition
Edison International’s industry-leading ESG profile received wide-ranging recognition and awards in 2021 Climate Change Utility Transformation Edison Award Green Growth 50 Innovative Star of Energy Leaderboard Utilities Edison International and #10 (Forbes) Efficiency Award SCE (Smart Electric Power
Slide 8: Total 2021 energy burden in SCE's service area was below median
Total 2021 energy burden in SCE’s service area was below median and can decrease with higher levels of electrification Electricity and total energy burdens in SCE’s service area …and among California IOUs, SCE tend to be lower than those in other states… has the lowest system average rate 2021 Est.
Slide 9: Second Quarter Earnings Summary
Second Quarter Earnings Summary Q2 2022 Q2 2021 Variance Key SCE EPS Drivers2 Higher revenue $ 0.63 Basic Earnings Per Share (EPS) CPUC revenue - GRC authorized 0.34 SCE $ 0.79 $ 0.95 $ (0.16) CPUC revenue - Other 3,4 0.26 Other operating revenue 0.03 EIX Parent & Other (0.16) (0.11) (0.05) Higher O
Slide 10: SCE has significant capital expenditure opportunities in grid safety and reliability
SCE has significant capital expenditure opportunities driven by investments in the safety and reliability of the grid Capital deployment expected to increase in future GRC and Total 2021–2025 capital plan of other applications1 $27–30 billion driven by Capital Expenditures, $ in Billions investments
Slide 11: 2021 GRC track 1 decision provides rate base visibility through 2023
2021 GRC track 1 decision provides rate base visibility through 2023; future applications expected to extend growth From a 2021 base, rate base growth forecast of 7–9% Forecast includes recovery of through 2025, reflecting future incremental investment utility-owned storage for Rate Base1, $ in Bill
Slide 12: EIX reaffirms 2022 core EPS guidance of $4.40–4.70
EIX reaffirms 2022 core EPS guidance of $4.40–4.70 EIX 2022 Core Earnings Per Share Guidance Range Key components of variances from Building from SCE Rate Base EPS SCE rate base EPS1 YTD 2022 Rate Base EPS Recorded1 Guidance1 Recording at current cost of capital pending 2022 cost of capital decision
Slide 13: 2022 EIX Core Earnings Guidance Assumptions
2022 EIX Core Earnings Guidance Assumptions 2022 Assumption Additional Notes CPUC Rate Base ($ in Billions) $31.3 • Assumes CSRP track 1 settlement decision in 2022. Decision in 2023 would defer ~$45 million earnings Return on Equity (ROE) 10.30% • ROE sensitivity: 4 cents EPS for 10bps change in RO
Slide 14: EIX parent continues to execute on its 2022 financing plan
EIX parent continues to execute on its 2022 financing plan 2022 EIX Financing Plan1 Expect to issue securities with $300–400 million of equity content (consistent with prior disclosure)2 in combination of: – Potential for cash proceeds of ~$400–600 million from preferred equity issuance (50% equity
Slide 15: EIX has double-digit total return potential
EIX has double-digit total return potential, supported by leadership role in clean energy transition 5–7% core EPS CAGR1 Underpinned by strong rate base growth of ~7–9% 2021 to 2025 $27–30 billion 2021–2025 capital program ~4% 18 consecutive years of dividend growth current dividend yield2 Target di
Slide 16: Appendix
Appendix
Slide 17: 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, Uncollectibles, Wildfire-related, and Wildfire Insurance Applications $ in Millions Approved Applications Balance @ Recovery Remaining Rate Recovery by Year Application / Account June 30 Thr
Slide 18: EIX reaffirms 2021–2025 EPS growth rate target
EIX reaffirms 2021–2025 EPS growth rate target, which would result in 2025 EPS of $5.50–5.90 Earnings progression expected to continue to 2025 2025 Core EPS Components2 Core Earnings per Share Core Earnings per Share Approximate 5–7% Ranges2 2021–’25 CAGR1 5.50–5.90 2025 Rate Base EPS $6.45–6.90 • A
Slide 19: Year-to-Date Earnings Summary
Year-to-Date Earnings Summary YTD YTD 2022 2021 Variance Key SCE EPS Drivers2 Higher revenue $ 1.54 Basic Earnings Per Share (EPS) CPUC revenue - GRC authorized 0.68 SCE $ 1.18 $ 1.73 $ (0.55) CPUC revenue - Other 3,4 0.80 Other operating revenue 0.06 EIX Parent & Other (0.33) (0.21) (0.12) Higher O
Slide 20: Earnings Non-GAAP Reconciliations
Earnings Non-GAAP Reconciliations Reconciliation of EIX GAAP Earnings to EIX Core Earnings Earnings (Losses) Attributable to Edison International, $ in Millions1 Q2 2022 Q2 2021 YTD 2022 YTD 2021 SCE $ 302 $ 359 $ 449 $ 655 EIX Parent & Other (61) (41) (124) (78) Basic Earnings $ 241 $ 318 $ 325 $ 5
Slide 21: 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 Q2 2022 Q2 2021 YTD 2022 YTD 2021 Basic EPS $ 0.63 $ 0.84 $ 0.85 $ 1.52 Non-Core Items SCE 2017/2018 Wildfire/Mudslide Events claims and expen
Slide 22: 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 Guidance1 2022 EPS Attributable to Edison International Low High Basic EIX EPS $3.25 $3.55 Total Non-Core Items2 (1.15) (1.15) Core EIX EPS $4.40 $4.70 1. EPS is calcula
Slide 23: 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 (losses) internally for financial planning and for analysis of performance. Core earnings (losses) are