American Electric Power Company, Inc. · NASDAQ:AEP

American Electric Power — Q1 2012 Earnings Presentation

14 slides from American Electric Power's earnings presentation, Apr 20, 2012

  1. Slide 1: 1Q12 Earnings Release Presentation

    1Q12 Earnings Release Presentation April 20, 2012

  2. Slide 2: Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

    “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995 This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and each of its Registrant Subsidiaries believe that their expectations are

  3. Slide 3: First Quarter 2012 Highlights

    First Quarter 2012 Highlights  Financial Performance  Delivered GAAP and on-going earnings of $0.80 per share  2012 Earnings guidance not reaffirmed  Remain committed to long-term strategy outlined on February 10th  Progress in the 1st Quarter – Moving forward with Repositioning AEP  FINANCE –

  4. Slide 4: 1Q12 Performance

    1Q12 Performance First Quarter Reconciliation 1Q12 Performance Drivers  Weather was unfavorable by $87M vs. Ongoing prior year, unfavorable $68M vs. normal Earnings  Gross Customer Switching up $42M from EPS ($ in millions) prior year. Total 1Q12 retail generation 1Q11 $ 0.82 $392 margin lost $57M

  5. Slide 5: Normalized Load Trends

    Normalized Load Trends AEP Residential Normalized GWh Sales AEP Commercial Normalized GWh Sales %Change vs. Prior Year %Change vs. Prior Year 15% 15% 10% 10% 5% 4.4% 5% 0.3% 0.3% 1.2% 0.5% -0.1% 1.1% 0% 0% -1.7% -0.4% -2.8% -1.5% -1.0% -5% -5% 1Q11 2Q11 3Q11 4Q11 1Q12 2012E 1Q11 2Q11 3Q11 4Q11 1Q12

  6. Slide 6: Industrial Sales Volumes

    Industrial Sales Volumes AEP Industrial GWh by Sector GWh 2,400 Primary Metal Manuf acturing These 5 sectors account for approximately Chemical Manuf acturing 60% of AEP's total Industrial Sales. Petroleum and Coal Products Manuf acturing Mining (except Oil & Gas) 2,000 Paper Manuf acturing Industry

  7. Slide 7: Coal to Gas Switching

    Coal to Gas Switching Net Capacity Factor  Natural gas consumption increased 62% 1Q12 1Q11 1Q12 compared to 1Q11 AEP East Coal 47.0% 61.2%  Excluding Dresden, east combined cycle Gas 47.3% 21.7% average capacity factor for 1Q12 was AEP SPP approximately 85% Coal 75.7% 78.8% Gas 21.9% 17.2%  45 da

  8. Slide 8: Capitalization & Liquidity

    Capitalization & Liquidity 70.0% Total Debt / Total Capitalization Credit Statistics 62.5% 60.0% 57.2% 57.0% 55.3% 55.3% Actual Target 50.0% FFO Interest Coverage 4.7 >3.6x FFO To Total Debt 20.0% 15%- 20% 40.0% 30.0% Note: Credit statistics represent the trailing 12 months as of 03/31/2012 20.0% Li

  9. Slide 9: Questions

    Questions 9

  10. Slide 10: 1Q12 Earnings

    1Q12 Earnings $ millions Earnings Per Share 1st Qtr 1st Qtr 1st Qtr 1st Qtr 2011 2012 Change 2011 2012 Change Utility Operations $ 389 $ 383 $ (6) $ 0.81 $ 0.79 $ (0.02) Transmission Operations 4 9 5 0.01 0.02 0.01 Non-Utility Operations 8 8 - 0.02 0.02 0.00 Parent & Other (9) (11) (2) (0.02) (0.03)

  11. Slide 11: Quarterly Performance Comparison

    Quarterly Performance Comparison American Electric Power Financial Results for 1st Quarter 2012 Actual vs 1st Quarter 2011 Actual 2011 Actual 2012 Actual Performance Driver ($ millions) EPS Performance Driver ($ millions) EPS UTILITY OPERATIONS: Gross Margin: 1 East Regulated Integrated Utilities 18

  12. Slide 12: Retail Rate Performance

    Retail Rate Performance Rate Changes, net of trackers (in millions) 1Q12 vs. 1Q11 East Regulated $27 Integrated Utilities Ohio Companies $37 West Regulated $0 Integrated Utilities Texas Wires $0 AEP System Total $63 Impact on EPS $0.08 May not foot due to rounding 12

  13. Slide 13: 1Q12 Retail Performance

    1Q12 Retail Performance Retail Load* Weather Impact (weather normalized) (in millions) 1Q12 vs. 1Q11 1Q12 vs. 1Q11 East Regulated East Regulated (2.0%) ($45) Integrated Utilities Integrated Utilities Ohio Companies (0.8%) Ohio Companies ($24) West Regulated West Regulated 0.3% ($9) Integrated Utilit

  14. Slide 14: Off System Sales Gross Margin Detail

    Off System Sales Gross Margin Detail  Physical off-system sales margins 1Q11 1Q12 decreased from last year by $12M ($millions) ($millions) OSS Physical Sales $ 90 $ 78  AEP/Dayton Hub pricing: 22% Marketing/Trading $ 32 $ 22 decrease in liquidation prices Pre-Sharing Gross Margin $ 122 $ 100 Margi

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