Edison International · NYSE:EIX
Edison International — Q3 2017 Earnings Presentation
14 slides from Edison International's earnings presentation, Oct 30, 2017
Slide 1: Third Quarter 2017 Financial Results
October 30, 2017 Third Quarter 2017 Financial Results
Slide 2: Forward-looking statements
October 30, 2017 1 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 statements. Th
Slide 3: EIX Strategy Should Produce Superior Value
October 30, 2017 2 EIX Strategy Should Produce Superior Value Sustained Earnings and Dividend Growth Led by SCE Electric-Led Clean Energy Future SCE Rate Base Growth Drives Earnings • 8.3% average annual rate base growth through 2020 at request level • SCE earnings should track rate base growth Cons
Slide 4: Third Quarter Earnings Summary
October 30, 2017 3 Third Quarter Earnings Summary Q3 2017 Q3 2016(*) Variance Basic Earnings Per Share (EPS) SCE $ 1.43 $ 1.34 $ 0.09 EIX Parent & Other 0.01 (0.05) 0.06 Discontinued Operations — — — Basic EPS $ 1.44 $ 1.29 $ 0.15 Less: Non-core Items SCE $ — $ — $ — EIX Parent & Other — — — Discont
Slide 5: Year to Date Earnings Summary
October 30, 2017 4 Year to Date Earnings Summary YTD 2017 YTD 2016(*) Variance Basic Earnings Per Share (EPS) SCE $ 3.44 $ 3.21 $ 0.23 EIX Parent & Other (0.03) (0.20) 0.17 Discontinued Operations — — — Basic EPS $ 3.41 $ 3.01 $ 0.40 Less: Non-core Items SCE $ — $ — $ — EIX Parent & Other1 — 0.01 (0
Slide 6: SCE Capital Expenditure Forecast – Request Level
October 30, 2017 5 SCE Capital Expenditure Forecast – Request Level Note: Forecasted capital spending includes CPUC, FERC and other spending. 2018-2020 CPUC based on 2018 GRC request rebuttal testimony. See Capital Expenditure/Rate Base Detailed Forecast for further information, including potential
Slide 7: SCE Rate Base Forecast – Request Level
October 30, 2017 6 SCE Rate Base Forecast – Request Level CPUC • Rate base based on request levels from 2018 GRC Rebuttal Testimony FERC • FERC rate base is approximately 20% of SCE’s rate base by 2020; includes Construction Work in Progress (CWIP) Other • No change from prior forecast • Excludes SO
Slide 8: 2017 Core Earnings Per Share Guidance – Building from SCE Rate Base
October 30, 2017 7 $4.05 $4.32 (0.11)0.38 SCE 2017 EPS from Rate Base Forecast SCE Variances EIX Parent & Other EIX 2017 Core EPS Midpoint Guidance • O&M, financing and other benefits - $0.35 • Energy efficiency - $0.03 2017 Core Earnings Per Share Guidance – Building from SCE Rate Base • SCE author
Slide 9: Other Third Quarter Finance Topics
October 30, 2017 8 Other Third Quarter Finance Topics SCE CPUC Cost of Capital Mechanism • Filed Advice Letter for updated cost of debt and cost of preferred – total expected 2018 revenue requirement reduction of $73 million; approved by CPUC SCE FERC Formula Recovery Mechanism • SCE filed applicati
Slide 10: Appendix
October 30, 2017 9 Appendix
Slide 11: 2016 Retrospectively Adjusted EPS by Quarter
October 30, 2017 10 2016 Retrospectively Adjusted EPS by Quarter 20161 Q4 Q3 Q2 Q1 Earnings (loss) per share attributable to Edison International Continuing Operations SCE $4.22 $1.01 $1.34 $0.98 $0.90 Edison International Parent & Other (0.23) (0.04) (0.05) (0.11) (0.04) Discontinued Operations 0.0
Slide 12: Earnings Non-GAAP Reconciliations
October 30, 2017 11 Earnings Non-GAAP Reconciliations "Note: See Use of Non-GAAP Financial Measures. Earnings for second quarter and year-to-date 2016 were updated to reflect the implementation of the accounting standard for share- based payments effective January 1, 2016. ($ millions) Reconciliatio
Slide 13: SCE Core EPS Non-GAAP Reconciliations
October 30, 2017 12 SCE Core EPS Non-GAAP Reconciliations Basic EPS Non-Core Items Regulatory and tax items Write down, impairment and other charges Insurance recoveries Less: Total Non-Core Items Core EPS Reconciliation of SCE Basic Earnings Per Share to SCE Core Earnings Per Share 5% 5% $3.33 — —
Slide 14: Use of Non-GAAP Financial Measures
October 30, 2017 13 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 internally for financial planning and for analysis of performance. Core earnings ar