Ameren Corporation · NYSE:AEE
Ameren — Non-Deal Roadshow (March 2021)
40 slides from Ameren's roadshow presentation, Mar 17, 2021
Slide 1: Leading the Way to a Sustainable Energy Future
Leading the Way to a Sustainable Energy Future Investor Meetings Late March 2021
Slide 2: Cautionary Statements
Cautionary Statements Use of Non-GAAP Financial Measures In this presentation, Ameren has presented weather-normalized and core earnings per share, which are non-GAAP financial measures and may not be comparable to those of other companies. A reconciliation of GAAP to non-GAAP information is include
Slide 3: Company Description
Company Description Fully rate-regulated electric and natural gas utility Ameren Businesses 2.4M electric Ameren Missouri customers • Electric transmission, distribution, and generation business and a natural gas distribution business in Missouri regulated by MoPSC 0.9M gas • Serves 1.2 million elec
Slide 4: Delivering Strong Value to our Customers
Delivering Strong Value to our Customers Increased Customer Outage Improved Reliability1 Affordable Rates2 Frequency Satisfaction3 JD Power (per customer per year) +13% ¢/KWh Score +22% 1.00 Better 15 Better 766 750 0.80 0.89 734 13.08 731 12.84 723 0.77 700 0.60 10 10.22 690 10.02 650 663 0.40 651
Slide 5: Strong Track Record of EPS and Dividend Growth
Strong Track Record of EPS and Dividend Growth Weather-Normalized Core Weather-Normalized Dividends Paid per Share3 Earnings per Diluted Share1 Dividend Payout Ratio $3.75 +70% or $2.20 +25% $3.75 $2.20 $3.50 ~8% CAGR 2013 to 2020 $3.54 80% $3.25 2013 to 2020 $2.00 $3.32 $2.00 75% $3.00 $1.92 $3.05
Slide 6: Our Value Proposition for Customers, Shareholders and the Environment
Our Value Proposition for Customers, Shareholders and the Environment Attractive dividend Strong long-term and strong long-term dividend Attractive total growth outlook growth outlook return potential • Expect 6% to 8% EPS CAGR 2021-20251,2 • Annualized equivalent dividend rate of • Track record of
Slide 7: Our Sustainability Value Proposition
Our Sustainability Value Proposition ENVIRONMENTAL SOCIAL GOVERNANCE • Accelerating transition to a cleaner and • Delivering value to our customers in 2020 • Diverse BOD focused on strong oversight more diverse portfolio while focused on safety-first work culture – 57% women or racially/ethnically d
Slide 8: 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 and economic policies • Creating and capitalizing on opportunities for investment for the benefit of our cu
Slide 9: Four Constructive Regulatory Frameworks
Four Constructive Regulatory Frameworks FERC-regulated: Formula ratemaking Ameren • Allowed ROE is 10.52%, includes MISO participation adder of 50 basis points; ~54% average equity ratio Transmission • Rates reset each Jan. 1 based on forward-looking calculation with annual reconciliation ICC-regula
Slide 10: Expect to Deliver Strong Long-Term EPS and Dividend Growth
Expect to Deliver Strong Long-Term EPS and Dividend Growth • Expect 2021 EPS in a range of $3.65 to $3.851 Long-Term EPS Growth and • Remain on track to deliver strong long-term earnings growth 2021E EPS Guidance1 – Expect 6% to 8% EPS CAGR from 2021-20251 • Using 2021 EPS guidance range midpoint of
Slide 11: Strong Rate Base Growth in All Regulatory Jurisdictions
Strong Rate Base Growth in All Regulatory Jurisdictions1 Robust five-year infrastructure investment plan in all segments $17.1 Billion of Regulated Infrastructure Investment 2020 to 2025E Regulated Five-Year Rate 2021-2025 Infrastructure Rate Base2 Base CAGR ($ billions) Ameren Illinois Ameren Illin
Slide 12: Expected 2021-2025 Funding Plan
Expected 2021-2025 Funding Plan1 • Cash from Operations – Return of capital through depreciation in rates – Return on equity-financed portion of rate base – ~$1.6 to $1.7 billion of income tax deferrals and tax asset utilization • Income tax deferrals driven primarily by capital expenditures • Inclu
Slide 13: Illinois Legislative Initiatives
Illinois Legislative Initiatives Enhancing regulatory frameworks and advocating for responsible energy and economic policies Ameren Illinois Electric and Natural Gas Distribution • Downstate Clean Energy Affordability Act1 (HB 1734 / SB 311) introduced in Feb. 2021 – Allows utility-owned solar and b
Slide 14: Missouri Renewable Energy Investments
Missouri Renewable Energy Investments Creating and capitalizing on opportunities for investment for the benefit of our customers, shareholders and the environment 400 MW High Prairie Renewable Energy 300 MW Atchison Renewable Energy Center located in northeast Missouri Center located in northwest Mi
Slide 15: Callaway Energy Center
Callaway Energy Center • Team is executing plan to safely and sustainably return energy center to service – During facility’s return to power in late Dec. 2020, a non-nuclear operating issue occurred related to the generator – Following thorough investigation, decision made to move forward with ~$65
Slide 16: Investing in the Energy Grid
Investing in the Energy Grid • Investing to modernize energy grid, making it safer, more reliable, resilient and secure – Enable two-way energy flows to accommodate more renewable generation, distributed energy resources and innovative products and services 2020-2025E Regulated – Provide customers w
Slide 17: Robust Investment Opportunities Across All Businesses Over Next Decade
Robust Investment Opportunities Across All Businesses Over Next Decade1 Modernizing the grid and investing in cleaner generation for the long-term benefit of customers, shareholders and the environment Additional Investment Investment Plan 2021-2025 Opportunities 2021-2030 $40B+ ($ billions) $23+ St
Slide 18: Financial and Regulatory Update
Financial and Regulatory Update Ameren Missouri’s 400 MW High Prairie Renewable Energy Center placed in-service Dec. 2020
Slide 19: 2020 Earnings Analysis – Key Variance Drivers
2020 Earnings Analysis – Key Variance Drivers ↑ Ameren Transmission earnings — Increased infrastructure investments — Impact of FERC order addressing MISO allowed base ROE: +$0.04 Diluted EPS ↑ Ameren Illinois Natural Gas earnings 2019 vs. 2020 — Increased infrastructure investments — Lower other op
Slide 20: 2020 Weather-Normalized Electric Sales vs. Prior Year
2020 Weather-Normalized Electric Sales vs. Prior Year Ameren Missouri Weather-Normalized Electric Sales vs. Prior Year (Excluding impacts of MEEIA) Period Res. Com. Ind. Total Sales Drivers Q1 ~+2.5% ~(1.5)% ~(2)% ~0% Stay-at-home orders in St. Louis City and County began Mar. 23 Stay-at-home orders
Slide 21: 2021 Earnings Guidance: Key Drivers and Assumptions
2021 Earnings Guidance: Key Drivers and Assumptions1 2021 EPS Guidance Range of $3.65 to $3.85 ↑ 400 MW wind generation facility placed in-service in late 2020 and 300 MWs in 2021 ↑ New electric service rates effective Apr. 1, 2020 ↑ Higher weather-normalized electric retail sales and other margins
Slide 22: 2021 Earnings Guidance: Key Drivers and Assumptions
2021 Earnings Guidance: Key Drivers and Assumptions1 2021 EPS Guidance Range of $3.65 to $3.85 ↑ Higher expected year-end rate base reflecting infrastructure investments Ameren Illinois — Year-end estimated rate base: ~$3.9 billion compared to ~$3.6 billion in 2020 Electric ↑ Allowed ROE of 7.75% ba
Slide 23: Ameren Organizational Structure and External Debt Balances
Ameren Organizational Structure and External Debt Balances1 $ in millions as of Dec. 31, 2020 All Moody’s and S&P outlooks “Stable” Ameren Corporation (Baa1/BBB+) Sr. Unsecured (Baa1/BBB) - $1,600 Commercial Paper (P-2/A-2) - $490 Ameren Missouri Ameren Illinois ATXI (Baa1/BBB+) (A3/BBB+) (A2/-) Sr.
Slide 24: Select Regulatory Matters – Ameren Missouri
Select Regulatory Matters – Ameren Missouri COVID-19 Cost Recovery • In March 2021, MoPSC approved request to track and defer certain costs incurred related to COVID-19, net of realized cost savings – Includes ~$6 million of net costs incurred through Dec. 31, 2020 – True-up through March 31, 2021 –
Slide 25: Select Regulatory Matters – Ameren Illinois
Select Regulatory Matters – Ameren Illinois Electric Distribution • In Dec. 2020, the ICC approved a $49 million base rate decrease in electric formula rates effective Jan. 2021 – All-in 2021 residential electric rates, for customers taking delivery and energy supply from Ameren Illinois, are down 2
Slide 26: Summary
Summary Expect to deliver strong earnings growth in 2021 with guidance in a range of $3.65 to $3.85 per diluted share1 Successfully executing our strategy; well-positioned for future growth Strong long-term growth outlook • Expect 6% to 8% compound annual EPS growth 2021-20251,2 • Expect ~8% compoun
Slide 27: Appendix
APPENDIX
Slide 28: Focused on Delivering Affordable Service to Our Customers
Focused on Delivering Affordable Service to Our Customers Residential rates since key legislative or regulatory enhancements Ameren Missouri Ameren Illinois Ameren Illinois Electric1,2 Electric Distribution3 Natural Gas Distribution3 ¢/KWh ~8.5% ¢/KWh ~2.5% $/therm ~2% 12.00 12.00 1.20 10.59 1.00 10
Slide 29: Focused on Disciplined Cost Management to Keep Customer Rates Affordable
Focused on Disciplined Cost Management to Keep Customer Rates Affordable • Continued focus on disciplined cost management from 2015 to 2020 Ameren – Total operating expenses decreased 14% Operating Expenses – Other non-fuel O&M expenses decreased 2% ($ millions) – Fuel and purchased power expenses d
Slide 30: Our Focus on Delivering a Cleaner Energy Future Responsibly
Our Focus on Delivering a Cleaner Energy Future Responsibly While providing safe, reliable and affordable energy to customers • Climate risk management and mitigation – Targeting significant reductions in greenhouse gases Targeting Net-Zero Carbon – Implementing robust customer energy efficiency pro
Slide 31: Ameren Missouri Generation Transformation
Ameren Missouri Generation Transformation Transition to a cleaner and more diverse portfolio in a responsible fashion 1 50% CARBON EMISSIONS 85% CARBON EMISSIONS NET-ZERO CARBON REDUCTION2 REDUCTION2 EMISSIONS2 • Ameren Missouri filed its preferred Integrated Resource Plan with the MoPSC in Sep. 202
Slide 32: Building a Brighter and Cleaner Energy Future
Building a Brighter and Cleaner Energy Future Innovative Programs to Meet Customer Needs and Rising Expectations Utility-owned solar Subscription program generation facilities for MO available to MO residential non-residential customer Neighborhood Community and small business parking lots, open lan
Slide 33: Ameren Missouri Smart Energy Plan
Ameren Missouri Smart Energy Plan filed with MoPSC on Feb. 18 Investing in and operating our utilities in a manner consistent with existing regulatory frameworks • $1.7 billion invested in 20201 to improve reliability and provide clean energy to the customers and communities we serve – Smart switche
Slide 34: Planned 2021 Capital Expenditures
Planned 2021 Capital Expenditures 2021E Capital Expenditures1 ($ millions) $3,725 $335 $515 $670 $500 $1,705 2021E Ameren Missouri Ameren Missouri Renewables Ameren Transmission Ameren Illinois Electric Distribution Ameren Illinois Natural Gas 1 Effective as of Feb. 19, 2021 Earnings Conference Call
Slide 35: Ameren's Estimated Coal-Related Revenues in 2020
Ameren’s Estimated Coal-Related Revenues in 2020 Return on Investment Revenues Cost Recovery3 Revenues $2.1B1 x $2.1B1 x ($103M $423M + 52% x 48% x x 25%) / $161M x $147M + 9.53%2 = 4.5% = (1 - 25%) 26%1 = $154M = $103M $45M $34M $42M $724M $5,794M 16% Return on Interest Tax Expense Property Fuel, o
Slide 36: GAAP to Core Earnings Per Share Reconciliations
GAAP to Core Earnings Per Share Reconciliations Year Ended Dec. 31, 2013 2014 2015 2016 2017 2018 2019 2020 GAAP Earnings / Diluted EPS $1.18 $2.40 $2.59 $2.68 $2.14 $3.32 $3.35 $3.50 Exclude results from discontinued operations 0.87 — (0.01) — — — — — Less: Income tax benefit / expense 0.05 — (0.20
Slide 37: Weather-Normalized Earnings per Share Reconciliations
Weather-Normalized Earnings per Share Reconciliations Year Ended Dec. 31, 2013 2014 2015 2016 2017 2018 2019 2020 Core1 Diluted EPS $2.10 $2.40 $2.56 $2.68 $2.83 $3.37 $3.35 $3.50 Ameren Missouri weather impact included in Electric 0.03 0.05 (0.04) 0.16 (0.07) 0.43 0.04 (0.05) Margins Less: Income t
Slide 38: Investor Relations Calendar
Investor Relations Calendar MARCH 2021 APRIL 2021 SUN. MON. TUES. WED. THUR. FRI. SAT. SUN. MON. TUES. WED. THUR. FRI. SAT. 1 2 3 4 5 6 1 2 3 Morgan Wells BAML Stanley Fargo & Virtual Virtual Ed. Jones Conf. Conf. Mtg. 7 8 9 10 11 12 13 4 5 6 7 8 9 10 14 15 16 17 18 19 20 11 12 13 14 15 16 17 Wolfe
Slide 39: Select Regulatory Matters
Select Regulatory Matters Missouri Public Service Commission • Smart Energy Plan filing: Docket No. EO-2019-0044 • Electric and natural gas rate review 60-day notice filings: Docket No. ER-2021-0240 and Docket No. GR-2021-0241 • 2020 Integrated Resource Plan: Docket No. ER-2021-0021; https://www.ame
Slide 40: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations AFUDC – Allowance for funds used during construction ISRS – Infrastructure System Replacement Surcharge ATXI – Ameren Transmission Company of Illinois M – Million B – Billion MEEIA – Missouri Energy Efficiency Investment Act bps – Basis points MISO – Midcontinent