Ameren Corporation · NYSE:AEE
Ameren — Non-Deal Roadshow (March 2017)
31 slides from Ameren's roadshow presentation, Mar 27, 2017
Slide 1: Lead Today. Transform Tomorrow.
Lead Today. Transform Tomorrow. Australian and European Investor Meetings Late March 2017 | New York and Boston Investor Meetings | September 2016
Slide 2: Cautionary Statements
Cautionary Statements Use of Non-GAAP Financial Measures In this presentation, Ameren has presented core and weather-normalized earnings and free cash flow, which are non-GAAP measures and may not be comparable to those of other companies. A reconciliation of GAAP to non-GAAP earnings is included ei
Slide 3: Ameren Corporation Representatives
Ameren Corporation Representatives Australian Meetings European Meetings Warner Baxter Andrew Kirk Marty Lyons Doug Fischer Chairman, President Manager, Executive Vice Senior Director, and Investor Relations President and Chief Investor Relations Chief Executive Financial Officer Officer 3 | Austral
Slide 4: Company Description and Ameren Segments
Company Description Ameren Segments 2.4M Fully rate-regulated electric electric Ameren Missouri and gas utility customers • Electric generation, transmission and distribution business and a natural gas distribution business in Missouri regulated Corporate Headquarters by MoPSC Electric Service Terri
Slide 5: Our Value Proposition to Investors and Customers
Our Value Proposition to Investors and Customers Strong Attractive long-term growth Attractive total return outlook dividend potential • Continue to expect 5% to 8% • Annualized equivalent dividend • Attractive earnings growth compound annual EPS growth rate of $1.76 per share provides outlook and y
Slide 6: Our Strategic Plan
Our Strategic Plan • Investing in and operating our utilities in a manner consistent with existing regulatory frameworks • Creating and capitalizing on opportunities for investment for the benefit of our customers and shareholders • Enhancing regulatory frameworks and advocating for responsible ener
Slide 7: Solid Operating Performance
Solid Operating Performance Electric rates Safety Delivery system reliability Generating plant are low has improved has improved performance remains solid Average Residential Safety Distribution System Baseload Energy Electricity Prices1 Performance Reliability2 Center Performance Recordable Lost Wo
Slide 8: Our Regulatory Frameworks
Our 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 treatment for ATXI’s
Slide 9: Investing Strategically, Consistent with Regulatory Frameworks
Investing Strategically, Consistent with Regulatory Frameworks $10.8 Billion of Regulated 2016 to 2021E Regulated 5-Yr Rate Infrastructure Investment1,2 Base CAGR Infrastructure Rate Base1,3 2017-2021 ($ Billions) Ameren Illinois % of Natural Gas +6% Total 6% $17.9 CAGR $1.4B, Ameren $3.8 Ameren Ill
Slide 10: Investing Strategically, with Focus on Transmission and Distribution
Investing Strategically, with Focus on Transmission and Distribution 2016 to 2021E Regulated • Expect energy grid will be increasingly important and valuable to a Infrastructure Rate Base1 more sustainable future for our customers, the communities we serve and our shareholders 100% ─ Investing to mo
Slide 11: 2017-2021 Capital Expenditure Funding Plan
2017-2021 Capital Expenditure Funding Plan1 • Cash from operations Ameren Credit Ratings2 ─ Return of capital through depreciation in rates Moody's S&P ─ Return on equity-financed portion of rate base ─ Income tax deferrals and tax assets of ~$1.9-$2.0 billion Ameren Corporation • Income tax deferra
Slide 12: Legislative and Regulatory Update
Legislative and Regulatory Update | Australian and European Investor Meetings | Late March 2017
Slide 13: Illinois Legislative Update
Illinois Legislative Update • Future Energy Jobs Act enacted in Dec. 2016; effective June 2017 • Enhances and extends Ameren Illinois’ Electric Distribution regulatory framework ─ Extends constructive formula ratemaking through 2022 • Enables continuation of Ameren Illinois’ strong rate base growth
Slide 14: Missouri Electric Rate Review
Missouri Electric Rate Review Unanimous Stipulation and Agreement approved by MoPSC March 8 • Increases annual base electric revenue requirement by $92 million ─ Removes negative effect of lower sales to New Madrid smelter • Decreases base level of net energy costs by $54 million annually, excluding
Slide 15: Missouri Legislative Update
Missouri Legislative Update • Proposed Missouri Legislation: The Missouri Economic Development and Infrastructure Investment Act (SB 190)1 approved by Senate Commerce Committee ─ Deferral between rate cases of depreciation on capital projects placed in-service and of return on incremental rate base
Slide 16: Federal Income Tax Reform
Federal Income Tax Reform • Ameren supports thoughtful, comprehensive tax reform ─ Lowers corporate tax rates ─ Drives economic growth and job creation ─ Benefits our customers, communities and other key stakeholders • Reform proposals not fully-developed, but several concepts have been discussed ─
Slide 17: Strategic Focus and Guidance
Strategic Focus and Guidance | Australian and European Investor Meetings | Late March 2017
Slide 18: Executing Our Strategy in 2017
Executing Our Strategy in 2017 Key Focus Areas • Transmission ─ Advance regional multi-value projects (Illinois Rivers, Spoon River, and Mark Twain) and local reliability projects included in investment plan ─ Continue to work for constructive outcome in pending MISO ROE complaint case • Ameren Illi
Slide 19: Earnings Guidance
Earnings Guidance 2017 Diluted EPS Guidance Range of GAAP and Weather-normalized (WN) • Expect strong weather-normalized EPS growth in $2.65 Diluted EPS 2016 vs. 2017E to $2.852 2017 2017E ─ ~6.5% based on 2017 guidance range midpoint 2016 2016 GAAP2 GAAP WN3 $2.85 $2.68 $2.58 • Remain on track to d
Slide 20: 2017 Earnings Guidance: Key Drivers and Assumptions
2017 Earnings Guidance: Key Drivers and Assumptions1 Regulated by MoPSC Increased electric service rates consistent with stipulation and agreement ─ Reflects infrastructure investments in service at Dec. 31, 2016, as well as more recent sales and cost levels Ameren ─ Removes negative effect of lower
Slide 21: 2017 Earnings Guidance: Key Drivers and Assumptions, cont'd
2017 Earnings Guidance: Key Drivers and Assumptions, cont’d1 Regulated by ICC Higher weather-normalized electric delivery earnings reflecting infrastructure Ameren Illinois investments made under formula ratemaking ─ Year-end estimated rate base: ~$2.82 billion compared to $2.6 billion in 2016 Elect
Slide 22: 2017 Cash Flow Guidance
2017 Cash Flow Guidance1 2017 Capital Expenditures 2017 ($ Millions) ($ millions) Guidance $2,220 Net cash provided by operating activities $ 1,990 $325 Capital expenditures (2,220) $375 65% Other cash used in investing activities (35) $255 Dividends: common and preferred2 (435) $480 Free cash flow
Slide 23: Summary
Summary Delivered solid earnings growth in 2016 Successfully executing our strategy Strong long-term growth outlook • Expect 5% to 8% compound annual EPS growth from 2016 through 20201,2 • Expect 6% compound annual rate base growth from 2016 through 20212 ─ Sustainable infrastructure investment pipe
Slide 24: Appendix
Appendix | Australian and European Investor Meetings | Late March 2017
Slide 25: Regional Multi-Value Projects: Significant FERC-Regulated Transmission Investment
Significant FERC-Regulated Regional Multi-Value Projects Transmission Investment • Planned $2.8 billion investment – 2017-20211 ─ $0.6 billion of regional multi-value projects at ATXI ─ $2.2 billion of local reliability and connecting portions of regional multi-value projects at Ameren Illinois • To
Slide 26: Transmission Regulatory Update
Transmission Regulatory Update FERC MISO Complaint Cases Regarding MISO base ROE • Cases sought to reduce Ameren Illinois’ and ATXI’s transmission service allowed base ROE ─ In first case, FERC final order issued Sept. 28, 2016 confirmed ALJ initial recommendation of a 10.32% base ROE • Maximum ROE
Slide 27: Select Regulatory and Legislative Matters
Select Regulatory and Legislative Matters Missouri General Assembly / Missouri Public Service Commission • Senate Bills 190, 214 and 215: http://www.senate.mo.gov/17info/BTS_Web/BillList.aspx?SessionType=R • House Bills 628 and 997: http://www.house.mo.gov/billlist.aspx • 2016 electric rate review:
Slide 28: Investor Relations Calendar
Investor Relations Calendar MARCH 2017 APRIL 2017 MON. TUES. WED. THUR. FRI. SAT. SUN. MON. TUES. WED. THUR. FRI. SAT. 1 2 3 4 1 Morgan UBS Stanley Conf. Conf. 5 6 7 8 9 10 11 2 3 4 5 6 7 8 12 13 14 15 16 17 18 9 10 11 12 13 14 15 Barclays Q1 Quiet Chicago Period Conf. 19 20 21 22 23 24 25 16 17 18
Slide 29: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations ALJ – Administrative Law Judge MWh – Megawatthour ATXI – Ameren Transmission Company of Illinois New Madrid smelter – New Madrid, Missouri aluminum smelter (formerly owned by Noranda Aluminum, Inc.) B – Billion OPEB – Other Post-Employment Benefits CAGR – Compound
Slide 30: Warner L. Baxter
Warner L. Baxter Chairman, President and Chief Executive Officer, Ameren Corporation • Warner Baxter is chairman, president and chief executive officer of Ameren Corporation. During his more than 20-year tenure at Ameren, Baxter has also served in a variety of leadership roles, including chief finan
Slide 31: Martin (Marty) J. Lyons, Jr.
Martin (Marty) J. Lyons, Jr. Executive Vice President and Chief Financial Officer, Ameren Corporation President, Ameren Services • Martin J. Lyons is executive vice president and chief financial officer of Ameren Corporation as well as president of Ameren Services. In these capacities, Lyons is resp