Slide 1: Lead Today. Transform Tomorrow. Third Quarter 2017 Earnings
Lead Today. Transform Tomorrow. Third Quarter 2017 Earnings Nov. 3, 2017
Slide 2: Cautionary Statements
Cautionary Statements Use of Non-GAAP Financial Measures In this presentation, Ameren has presented core earnings per share and core earnings per share guidance, which are non-GAAP measures and may not be comparable to those of other companies. A reconciliation of GAAP to non-GAAP information is inc
Slide 3: Business Update
Business Update Warner Baxter Chairman, President and Chief Executive Officer, Ameren Corp.
Slide 4: Earnings and Guidance Summary
Earnings and Guidance Summary 2017 Core1 Diluted EPS Guidance Range of • 2017 core1 earnings guidance range narrowed to $2.73 Core1 Diluted EPS $2.73 to $2.87 per diluted share to $2.87 2016 vs. 2017 ─ On track to deliver strong earnings results for 2017 $2.56 $2.45 • Key Q3 Earnings Variance Driver
Slide 5: Business Update
Business Update Our Strategic Plan Capital Expenditures YTD Sept. 30, 2017 • Investing in and operating our utilities in a manner consistent with ($ Millions) existing regulatory frameworks • Enhancing regulatory frameworks and advocating for responsible energy and economic policies $237 • Creating
Slide 6: Business Update, cont’d
Business Update, cont’d Executing Our Strategic Plan, cont’d • Ameren Illinois Electric and Natural Gas Distribution ─ Invested $534 million in the first nine months of 2017 • Investments in more reliable electric grid and gas distribution system, including smart electric meters and gas meter module
Slide 7: Transitioning Generation to Cleaner, More Diverse Energy Portfolio
Transitioning Generation to Cleaner, More Diverse Energy Portfolio • Ameren Missouri filed its preferred 20-year Integrated Resource Plan with MoPSC in Sept. ─ Plan included addition of at least 700 MWs of wind generation1 by 2020 ─ Would achieve compliance with Missouri Renewable Energy Standard (M
Slide 8: Investing Strategically, Consistent with Regulatory Frameworks
Investing Strategically, Consistent with Regulatory Frameworks Feb. 2017 5-year plan – does not reflect potential ~$1B wind investment $10.8 Billion of Regulated 2016 to 2021E Regulated 5-Yr Rate Infrastructure Investment1,2 Infrastructure Rate Base1,3 Base CAGR 2017-2021 ($ Billions) Ameren Illinoi
Slide 9: 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 • Expect 5% to 8% compound annual • Annualized equivalent dividend rate of • Attractive combined earnings growth EPS growth from 2016 through 20201,2 $1.83 per share
Slide 10: Financial Update
Financial Update Marty Lyons Executive Vice President and Chief Financial Officer, Ameren Corp.
Slide 11: GAAP to Core Earnings Reconciliation
GAAP to Core Earnings Reconciliation (In millions, except per share amounts) Three Months Nine Months 2016 2017 2016 2017 GAAP Earnings / Diluted EPS $ 369 $ 1.52 $ 288 $ 1.18 $ 621 $ 2.56 $ 583 $ 2.39 Charge for revaluation of deferred taxes — — 22 0.09 — — 22 0.09 Less: Federal income tax benefit
Slide 12: 2017 Third Quarter Earnings Analysis
2017 Third Quarter Earnings Analysis Core1 Diluted EPS Q3 2016 vs. Q3 2017 Key Earnings Variance Drivers: Lower Ameren Illinois Electric Distribution earnings ─ Change in timing of interim period revenue recognition reflecting Future Energy Jobs Act, which decoupled revenues from sales volumes: $(0.
Slide 13: 2017 EPS Guidance and Select Balance of Year Considerations
2017 EPS Guidance and Select Balance of Year Considerations • 2017 GAAP diluted EPS guidance range narrowed to $2.67 to $2.81 – Includes Q3 non-core, non-cash Ameren Parent charge for revaluation of deferred taxes resulting from July 2017 2017E Core1 increase in Illinois income tax rate: ~$(0.06) –
Slide 14: Select Regulatory Matters
Select Regulatory Matters Ameren Illinois electric distribution service • $17 million net revenue requirement decrease filed with ICC in annual formula rate update; consistent with ALJ recommendation – ICC order expected in Dec. 2017 with new rates effective in Jan. 2018 Ameren Transmission service
Slide 15: Potential Federal Income Tax Reform
Potential Federal Income Tax Reform • Ameren supports thoughtful, comprehensive tax reform that would drive economic growth and job creation while supporting investment in critical energy infrastructure benefiting our customers, communities and other key stakeholders • Key areas of focus: ─ Corporat
Slide 16: Select 2018 Earnings Considerations Compared to 2017
Select 2018 Earnings Considerations Compared to 2017 Higher average estimated rate base: ~$2.91 billion compared to ~$2.51 billion in 2017 reflecting Ameren infrastructure investments ─ Outcome of second MISO ROE complaint case is uncertain Transmission • ALJ initial decision was 10.2% but MISO tran
Slide 17: Summary
Summary Expect to deliver 2017 core earnings within a range of $2.73 to $2.87 per diluted share1 Successfully executing our strategy Strong long-term growth outlook • Expect 5% to 8% compound annual EPS growth from 2016 through 20202,3 • Expect 6% compound annual rate base growth from 2016 through 2
Slide 18: Appendix
Appendix
Slide 19: 2017 Earnings Analysis for Nine Months Ended Sept. 30
2017 Earnings Analysis for Nine Months Ended Sept 30 Core1 Diluted EPS Key Earnings Variance Drivers: Nine Months Ended Sept. 30 Lower Ameren Illinois Electric Distribution earnings ─ Change in timing of interim period revenue recognition reflecting Future Energy Jobs Act, which decoupled revenues f
Slide 20: 2017 Long-Term Debt Financings
2017 Long-Term Debt Financings • In June, Ameren Missouri issued $400 million of 2.95% Ameren Credit Ratings1 senior secured notes due 2027 Moody's S&P ─ Proceeds applied to repay $425 million of 6.4% senior secured Ameren Corporation notes • Issuer Baa1 BBB+ • In June, ATXI priced $450 million of 3
Slide 21: Select Regulatory Matters
Select Regulatory Matters Missouri Public Service Commission • 2017 Integrated Resource Plan: https://www.ameren.com/missouri/environment/integrated-resource-plan. Docket No. EO-2018-0038 • CCN request for ATXI’s Mark Twain transmission project (alternative route): Docket No. EA-2017-0345 • Working
Slide 22: Investor Relations Calendar
Investor Relations Calendar NOVEMBER 2017 DECEMBER 2017 SUN. MON. TUES. WED. THUR. FRI. SAT. SUN. MON. TUES. WED. THUR. FRI. SAT. 1 2 3 4 1 2 Q3 Quiet Q3 2017 Period, Earnings continued Release 5 6 7 8 9 10 11 3 4 5 6 7 8 9 EEI Conf. EEI Conf. 12 13 14 15 16 17 18 10 11 12 13 14 15 16 Minneapolis In
Slide 23: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations ALJ – Administrative Law Judge MISO – Midcontinent Independent System Operator, Inc. ATXI – Ameren Transmission Company of Illinois MoPSC – Missouri Public Service Commission B – Billion MW – Megawatt CAGR – Compound annual growth rate ROE – Return on Equity CCN –