Ameren Corporation · NYSE:AEE
Ameren — AGA Financial Forum & Mid-Atlantic Investor Meetings 2016
24 slides from Ameren's conference presentation, May 16, 2016
Slide 1: Making an Impact
Making anImpact AGA Financial Forum & Mid-Atlantic Investor Meetings May 16-18, 2016
Slide 2: Cautionary Statements
Cautionary Statements Use of Non-GAAP Financial Measures In this presentation, Ameren has presented free cash flow, which is a non-GAAP measure. Ameren calculates free cash flow by subtracting its cash flows from investing activities (which include capital expenditures), dividends on common stock, a
Slide 3: Company Description
Company Description Fully rate-regulated electric and gas utility • 2.4 million electric and 0.9 million gas customers • 10,200 MW of regulated electric generation capability • 4,600 circuit miles of FERC regulated electric transmission Ameren Corporation Ameren Missouri Ameren Illinois Electric Tra
Slide 4: Ameren Natural Gas Delivery Systems
Ameren Natural Gas Delivery Systems • One of the nation’s larger natural gas distribution utilities – More than 0.9 million customers with more than 0.8 million in Illinois and more than 0.1 million in Missouri • Gas infrastructure – $1.4 billion of rate base, 12% of total Ameren rate base at year-e
Slide 5: Solid Operating Performance
Solid Operating Performance # Delivery system reliability Generating plant Electric rates are low Safety has improved has improved performance remains strong Average Residential Electricity Prices1 Safety Performance 30 600 150 Lost Workday Recordable Cases 25 ¢/KWh BETTER 20 400 100 BETTER Cases 15
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 policies • Creating and capitalizing on opportunities for investment for the benefit of our customers and s
Slide 7: Our Regulatory Frameworks
Our Regulatory Frameworks FERC-regulated electric transmission service • Formula ratemaking – Rates reset each Jan. 1 based on forward-looking calculation with annual reconciliation – Constructive rate treatment for ATXI’s three MISO-approved multi-value projects, including construction work in prog
Slide 8: Long-Term Total Return Outlook
Long-Term Total Return Outlook1 • Expect ~6.5% compound annual rate base growth from 2015 through 2020 2015 to 2020E Regulated 5-Yr Rate – Strong pipeline of investments to benefit customers Infrastructure Rate Base2 Base CAGR and shareholders $16.7 ~6.5% • Expect 5% to 8% compound annual EPS growth
Slide 9: FERC-Regulated Transmission Investment
FERC-Regulated Transmission Investment Planned $3.0 billion investment – 2016-20201 • $1.0 billion of regional multi-value projects at ATXI Regional • $2.0 billion of local reliability and connecting portions of regional Multi-Value Projects multi-value projects at Ameren Illinois Total Multi-Value
Slide 10: 2016-2020 Capital Expenditure Funding Plan
2016-2020 Capital Expenditure Funding Plan1 • Return of capital through depreciation in rates • Retained earnings • ~$2.5-$2.6 billion of income tax deferrals and assets – Income tax deferrals driven primarily by capital expenditures • ~$930 million due to extension of bonus tax depreciation – Inclu
Slide 11: Summary
Summary Q1 2016 earnings were solid • 2016 diluted EPS guidance range of $2.40 to $2.601 Successfully executing our strategy Strong long-term growth outlook • Expect ~6.5% compound annual rate base growth from 2015 through 20202 • Expect 5% to 8% compound annual EPS growth from 2016 through 20202 –
Slide 12: Financial and Regulatory Update
Financial and Regulatory Update
Slide 13: Earnings Summary
Earnings Summary Diluted EPS Key Earnings Variance Drivers: Q1 2015 vs. Q1 2016 Lower electric and natural gas sales volumes – Milder weather: ~$(0.10) vs. Q1 2015 and ~$(0.05) vs. normal – Net effect of reduced electric sales to Noranda: $(0.03) $0.45 Carryover effect of Missouri 2013-2015 ener
Slide 14: 2016 Earnings Guidance
2016 Earnings Guidance1 Select 2016 balance of year EPS considerations: 2016E Diluted EPS • Return to normal temperatures Q2-Q3 2016 ~flat; Q4 2016 ~+$0.08 $2.60 Q2-Q4 2016 compared to Q2-Q4 2015: $2.40 Increased electric transmission and delivery infrastructure investments by ATXI and Ameren Il
Slide 15: 2016 Cash Flow Guidance
2016 Cash Flow Guidance1 2016 Capital Expenditures 2016 $2,155 ($ millions) Guidance Net cash provided by operating activities $ 1,825 $690 ($ millions) Capital expenditures (2,155) Other cash used in investing activities (40) $630 Dividends: common and preferred2 (420) Free cash flow $ (790) $835 M
Slide 16: Select Pending Regulatory Matters
Select Pending Regulatory Matters Illinois Commerce Federal Energy Regulatory Commission Commission • Filed in April 2016 for required annual electric • Cases seek to reduce Ameren Illinois’ and ATXI’s delivery service formula rate update transmission service allowed base ROE of 12.38% – Filed for $
Slide 17: Noranda's Impact on Ameren Expected to be Temporary
Noranda’s Impact on Ameren Expected to be Temporary • Noranda Aluminum’s Background 2016 Expected – Ameren Missouri supplies electricity to Noranda’s aluminum smelter Diluted EPS – Ameren Missouri’s largest customer: ~4% of revenues and ~10% of MWh sales in 2015 Impact from – Noranda’s portion of Am
Slide 18: Appendix
Appendix
Slide 19: 2015 Ameren Illinois Regulatory and Legislative Outcomes
2015 Ameren Illinois Regulatory and Legislative Outcomes 2015 Rate Cases • Continue to Receive Constructive Rate Case Outcomes – ICC approved $106 million electric delivery formula rate increase, with new rates effective Jan. 2016 – ICC approved $45 million annual natural gas delivery rate increase
Slide 20: 2015 Ameren Missouri Electric Rate Case Order
2015 Ameren Missouri Electric Rate Case Order • MoPSC approved a $122 million annual rate increase effective May 30, 2015 – Net energy costs1: $109 million; Non-energy costs: $13 million – Rate base: $7.0 billion; Allowed ROE: 9.53%; Equity ratio: 51.8% – Test year ending March 31, 2014, with certai
Slide 21: Debt Outstanding and Credit Ratings
Debt Outstanding and Credit Ratings ($ in millions as of Mar. 31, 2016) Ameren Corporation (Baa1/BBB+) Sr. unsecured (Baa1/BBB) - $7001 Commercial paper (P-2/A-2) - $416 Ameren Missouri Ameren Illinois Ameren Transmission (Baa1/BBB+) Ameren Services (A3/BBB+) Company of Illinois Company (unrated) (u
Slide 22: Select Regulatory Matters
Select Regulatory Matters Illinois Commerce Commission • Recently filed electric delivery rate update: Docket No. 16-0262 • Website: http://www.icc.illinois.gov Missouri Public Service Commission • Order granting CCN for ATXI’s Mark Twain transmission project: Docket No. EA-2015-0146 • Website: http
Slide 23: Investor Relations Calendar
Investor Relations Calendar MAY 2016 MON. TUES. WED. THUR. FRI. SAT. 1 2 3 4 5 6 7 Q1 2016 Quiet Period, continued 8 9 10 11 12 13 14 Q1 2016 Q1 2016 Earnings Earnings Release Call 15 16 17 18 19 20 21 Mid- Mid- AGA Atlantic Atlantic Conf. Meetings Meetings 22 23 24 25 26 27 28 29 30 31 • May 10 Q1
Slide 24: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations ALJ - Administrative Law Judge. GAAP - Generally Accepted Accounting Principles ATXI - Ameren Transmission Company of Illinois. ICC - Illinois Commerce Commission. B - Billion. MEEIA - Missouri Energy Efficiency Investment Act. CAGR - Compound annual growth rate.
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